Document:

exv10w42

 

Exhibit 10.42

EXECUTION VERSION

LEASE

(Parcel 3: 9865 Towne Centre Drive, San Diego, California)

by and between

BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company

and

ILLUMINA, INC.,

a Delaware corporation

 

 

LEASE

(Parcel 3: 9865 Towne Centre Drive, San Diego, California)

     THIS LEASE (this “Lease”) is entered into as of this 26th day of January,
2007 (the “Execution Date”), by and between BMR-9885 Towne Centre Drive LLC, a Delaware
limited liability company (“Landlord”), and Illumina, Inc., a Delaware corporation
(“Tenant”).

RECITALS

     A. WHEREAS, Landlord is the owner of three (3) parcels of real property located in the City of
San Diego, County of San Diego, State of California, legally described as Parcels 1, 2 and 3 of
Parcel Map 18286 filed with the San Diego County Recorder on June 21, 1999 (together with any
easements and appurtenances thereto, the “Initial Illumina Lease Land”). The Original
Illumina Lease Land consists of approximately 10.781 gross acres and is improved with two (2)
buildings and an atrium on Parcels 1 and 2 (the “Existing Parcel 1 and Parcel 2 Buildings”)
and one (1) building on Parcel 3 (the “Diversified Building” and, collectively with the
Existing Parcel 1 and Parcel 2 Buildings, the “Original Illumina Lease Buildings”)
consisting of 115,870 square feet of space and commonly known as 9855 through 9885 (and consecutive
addresses), Towne Centre Drive, San Diego, California. The Original Illumina Lease Land and the
Original Illumina Lease Buildings are shown on the site plan attached hereto as Exhibit A and made
a part of this Lease. The Original Illumina Lease Land and the Original Illumina Lease Buildings
are collectively referred to as the “Original Illumina Lease Premises.”

     B. WHEREAS, On July 6, 2000, Landlord (as successor in interest to Tenant) and Diversified
Eastgate Pointe, LLC, a California limited liability company (as successor in interest to Matsix
Investments, Inc., “Diversified”), entered into that certain Eastgate Pointe Building “D”
Lease (the “Diversified Lease”), pursuant to which Diversified leases approximately 6,600
rentable square feet of space located in the Diversified Building (the “Diversified
Space”);

     C. WHEREAS, On August 18, 2004, Tenant and Landlord entered into that certain Single Tenant
Lease (the “Original Illumina Lease”), pursuant to which Landlord leases the Original
Illumina Lease Premises to Tenant;

     D. WHEREAS, Concurrently herewith, Landlord and Tenant are amending and restating the Original
Illumina Lease (such amended and restated lease, the “Illumina Lease”) to, among other
things, (i) exclude the Parcel 3 Land (including the Diversified Building) from the “Premises”
covered by the Illumina Lease; (ii) eliminate Tenant’s right of first refusal to lease space in the
Building (as defined below); (iii) eliminate the development fee; and (iv) extend the term of the
Original Illumina Lease to be co-terminous with the term of this Lease;

     E. WHEREAS, Landlord intends to construct an additional building totaling approximately 83,866
rentable square feet on the Property (the “Expansion Building” and, together with the
Diversified Building, the “Buildings”);

     F. WHEREAS, Landlord may subdivide (the “Subdivision”) Parcel 3 so that it will
consist of two lots that may be legally conveyed in accordance with California’s Subdivision Map
Act as follows: (a) the portion of Parcel 3 on which the Expansion Building is located, and to be
more particularly defined by Landlord in connection with the Subdivision (the “Subdivided
Property”), and (b) the portion of Parcel 3 excluding the Subdivided Property. The term
“Property” shall mean Parcel 3, together with all landscaping, parking facilities and other
improvements and appurtenances related thereto, including the Buildings, the Common Areas, the
Premises (as defined below) and the Diversified Space; and

     G. WHEREAS, Landlord wishes to lease to Tenant, and Tenant desires to lease from Landlord, the
Premises (as defined below) pursuant to the terms and conditions of this Lease, as detailed below.

AGREEMENT

     NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, agree as follows:

 

 

1. Lease of Premises.

     1.1. Effective on the Execution Date, Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, (a)approximately 4,400 rentable square feet of space located in the
Diversified Building (the “Diversified Building Premises”), and (b) upon the satisfaction
of the conditions set forth in this Section 1.1, the interior portion of the Expansion
Building described below (the “Expansion Premises” and, together with the Diversified
Building Premises, the “Premises”): (a) from and after the Phase 1 Commencement Date (as
defined below), 40,866 rentable square feet located in the Expansion Building (the “Phase 1
Premises”), (b) from and after the Phase 2 Commencement Date (as defined below), 21,500
rentable square feet located in the Expansion Building (the “Phase 2 Premises”), and (c)
from and after the Phase 3 Commencement Date (as defined below), the remainder of the interior
space located in the Expansion Building (including all elevator shafts and stairwells) (the
“Phase 3 Premises”), subject to and with the benefit of the terms, covenants, conditions
and provisions of this Lease. The term “Phase” shall mean and refer to each of the Phase 1
Premises, the Phase 2 Premises and the Phase 3 Premises. On or before Substantial Completion of
the Landlord’s Construction Work (as defined below), Tenant and Landlord shall mutually agree to:
(1) the location of the Phase 1 Premises, and shall attach a diagram of its location to this Lease
as Exhibit C; (2) the location of the Phase 2 Premises, and shall attach a diagram of its location
to this Lease as Exhibit D; and (3) the location of the Phase 2 Premises, and shall attach a
diagram of its location to this Lease as Exhibit E. In the event the parties are unable to agree
on the location of each of the Phase 1 Premises, the Phase 2 Premises and the Phase 3 Premises by
the Substantial Completion of the Landlord’s Construction Work, Landlord shall reasonably designate
the location of each of the Phase 1 Premises and the Phase 2 Premises, and shall attach: (x) a
diagram of the location of the Phase 1 Premises to this Lease as Exhibit C, (y) a diagram of the
location of the Phase 2 Premises to this Lease as Exhibit D, and (z) a diagram of the location of
the Phase 3 Premises to this Lease as Exhibit E.

     1.2. Tenant shall have, as appurtenant to the Premises, the exclusive right of tenants of the
Buildings (including any assignees, sublessee and assigns) to use, and permit its invitees to use
in common with Landlord and others, the elevators, walkways, access roads, and driveways necessary
for access to the Premises and the parking areas, loading areas, pedestrian sidewalks, landscaped
areas, trash enclosures, recreation areas and other areas and facilities, if any, which are located
on the Property (the “Common Areas”). Tenant’s use of the Common Areas shall at all times
be in compliance with all Applicable Laws and shall be consistent with and in connection with
Tenant’s Permitted Use as set forth in Section 2.8. Tenant shall use the Common Areas only
in such a manner as will not interfere with the use of, and access to, the Diversified Space and
the parking spaces to be provided to the occupants thereof under the Diversified Lease.

     1.3. This Lease and all rights and remedies of Tenant hereunder are subject and subordinate to
Section 2(e) (Common Areas), Section 2(j) (Parking), Section 2(k)
(Premises), Section 9 (Services and Utilities), Article 30 (Quiet Enjoyment) and
Article 32 (Signage & Sign Control) of the Diversified Lease.

2. Basic Lease Provisions. For convenience of the parties, certain basic provisions
of this Lease are set forth herein. The provisions set forth herein are subject to the remaining
terms and conditions of this Lease and are to be interpreted in light of such remaining terms and
conditions.

     2.1. Binding. This Lease shall take effect upon the Execution Date and, except as
specifically otherwise provided within this Lease, each of the provisions hereof shall be binding
upon and inure to the benefit of Landlord and Tenant from the Execution Date.

     2.2. Rentable Areas of the Premises. The term “Rentable Area” of (i) the
Diversified Building Premises shall be deemed to be 4,400 square feet; (ii) the Phase 1 Premises
shall be deemed to be 40,866 square feet, (iii) the Phase 2 Premises shall be deemed to be 21,500
square feet, (iv) the Phase 3 Premises shall be deemed to be 21,500 square feet, and (v) the
Expansion Premises shall be deemed to be 83,866 square feet, even if it is determined upon final
measurement of the Diversified Building Premises, such Phase or the Expansion Premises that the
Rentable Area of the Diversified Building Premises, such Phase or the Expansion Premises is smaller
or larger than the amount set forth in this Section 2.2.

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     2.3. Basic Annual Rent.

          2.3.1 Diversified Building Premises. Initial monthly and annual installment of Basic
Annual Rent for the Diversified Building Premises (the “Diversified Building Premises Basic
Annual Rent”) as of the Execution Date is set forth on Schedule 1 attached hereto.

          2.3.2 Expansion Premises. Initial monthly and annual installments of Basic Annual
Rent for the Expansion Premises (the “Expansion Premises Basic Annual Rent” and, together
with the Diversified Building Premises Basic Annual Rent, the “Basic Annual Rent”) as of
the Phase 1 Commencement Date, subject to adjustment in accordance with Section 6.1, shall
be as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Per Rentable	 	 	 	 	 	 
	 	 	 	 	 	 	S.F. of	 	 	 	 	 	 
	 	 	Rentable S.F. of	 	Phase 1	 	 	 	 	 	Total
	 	 	Phase 1 Premises	 	Premises	 	Total Annual	 	Monthly
	Phase 1 Premises
	 	 	40,866	 	 	$	2.80	 	 	$	1,373,097.60	 	 	$	114,424.80	 

     2.4. Estimated Delivery Dates. The Estimated Delivery Dates for each Phase of the
Premises are as follows:

          2.4.1 Phase 1 Estimated Delivery Date. October 1, 2008.

          2.4.2 Phase 2 Estimated Delivery Date. Twelve (12) months after the Phase 1
Commencement Date.

          2.4.3 Phase 3 Estimated Delivery Date. Twelve (12) months after the Phase 2
Commencement Date.

     2.5. Commencement Date: Subject to Section 5.2, the Commencement Date shall
be determined as follows:

          2.5.1 Diversified Building Premises Commencement Date: The Execution Date;

          2.5.2 Phase 1 Commencement Date: Thirty (30) days after the later of: (a) the Phase 1
Estimated Delivery Date, or (b) Substantial Completion of Landlord’s Construction Work and the
Tenant Improvements (each as defined below);

          2.5.3 Phase 2 Commencement Date: Thirty (30) days after the earlier of: (a) the Phase
2 Estimated Delivery Date, or (b) the date Tenant actually occupies any portion of the Phase 2
Premises to conduct business therein (including storage); and

          2.5.4 Phase 3 Commencement Date: Thirty (30) days after the earlier of: (a) the Phase
3 Estimated Delivery Date, or (b) the date Tenant actually occupies any portion of the Phase 3
Premises to conduct business therein (including storage).

     2.6. Expiration Date: Fifteen (15) years from the Phase 1 Commencement Date;
provided, however, Tenant shall have the option to extend this Lease as provided in
Article 42.

     2.7. Security Deposit: An amount equal to $40,836.75, which amount shall be increased
accordingly as occupancy of the Expansion Building by Tenant is increased as provided in
Article 10.

     2.8. Permitted Use: (a) Laboratory research, administration, pharmaceutical,
diagnostic, office, manufacturing and related health care and research uses in conformity with
Applicable Laws (as defined below); and (b) such other legally permitted uses as are approved by
Landlord, which approval shall not be unreasonably withheld or delayed.

     2.9. Address for Rent Payment:

BMR-9885 Towne Centre Drive LLC

Unit E

P.O. Box 51918

Los Angeles, CA 90051-6218

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     2.10. Address for Notices to Landlord:

BMR-9885 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

     2.11. Address for Notices to Tenant:

Illumina, Inc.

9885 Towne Centre Drive

San Diego, CA 92121

Attn: Christian Henry

     2.12. The following Exhibits are attached hereto and incorporated herein by reference:

	 	 	 
	Exhibit A

	 	Original Illumina Lease Premises
	Exhibit B

	 	Intentionally Omitted
	Exhibit C

	 	Phase 1 Premises
	Exhibit D

	 	Phase 2 Premises
	Exhibit E

	 	Phase 3 Premises
	Exhibit F

	 	Acknowledgement of Commencement Date and Expiration Date
	Exhibit G

	 	Tenant’s Personal Property
	Exhibit H

	 	Rules and Regulations
	Exhibit I

	 	Form of Estoppel Certificate
	Exhibit J

	 	Work Letter
	Exhibit K

	 	Form of Letter of Credit
	Exhibit L

	 	Reciprocal Easement Agreement
	Exhibit M

	 	Form of Subordination, Non-Disturbance and Attornment Agreement
	 
	 	 
	Schedule 1

	 	Diversified Building Premises Rent Schedule

3. Term. The actual term of this Lease (the “Term”) shall be the period from
the Execution Date through the Expiration Date, subject to earlier termination of this Lease as
provided herein.

4. Landlord’s Construction Work and Tenant Improvements.

     4.1. Shell and Core Construction of Expansion Building.

          4.1.1 Commencement of Landlord’s Construction Work. On or before June 1, 2007,
Landlord shall, at Landlord’s sole cost and expense, cause Landlord’s contractor, Reno Contracting
or such replacement thereof as Landlord may make from time to time with Tenant’s approval, which
approval shall not be unreasonably withheld or delayed (“Contractor”), to commence and
thereafter diligently prosecute the construction of the shell and core of the Expansion Building to
completion pursuant to the Approved CW Plans (as defined in the Work Letter), subject only to CW
Permitted Changes (as defined in the Work Letter), (all such construction, collectively,
“Landlord’s Construction Work”). Landlord’s Construction Work shall be performed in a
workmanlike manner, and in compliance with all Applicable Laws. The commencement and completion of
Landlord’s Construction Work shall be subject to delays resulting from acts of Tenants, acts of
God; acts of terrorism; adverse weather conditions; war; invasion; insurrection; acts of a public
enemy; terrorism; riot; mob violence; civil commotion; sabotage; labor disputes; general shortage
of labor, materials, facilities, equipment or supplies on the open market; delay in transportation;
delays caused by new, or changes to existing, laws, rules, regulations or orders of any
Governmental Authority; moratorium or other governmental action; inability to obtain permits or
approvals, including, without limitation, city and public utility approvals beyond the time periods
that generally prevail for obtaining such permits and approvals; the acts or inaction of the
contractor and subcontractors, if any; or any other cause
beyond the reasonable control of Landlord, financial ability excepted, whether similar or
dissimilar to the foregoing (collectively, “Force Majeure”).

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          4.1.2 Completion of Construction. Landlord’s Construction Work shall be deemed
“Substantially Complete” or there shall be “Substantial Completion” if Landlord has
(a) completed all of Landlord’s Construction Work identified on the Approved CW Plans (subject only
to such incomplete or defective work as will not materially or adversely impact Tenant’s continuous
and uninterrupted use of the Expansion Premises for its Permitted Use (collectively, the
“Punchlist Items”)) and (b) received a temporary or permanent certificate of occupancy from
the applicable municipal authority(ies) and a certificate of substantial completion from the
architect.

          4.1.3 Warranties. Landlord shall use commercially reasonable efforts (but without any
obligation to commence or pursue any litigation) to cause Contractor to complete with reasonable
promptness the Punchlist Items and repair with reasonable promptness all defects in the
construction of Landlord’s Construction Work in accordance with the Approved CW Plans as to which
Tenant notifies Landlord in writing (which notice Tenant shall give within thirty (30) days
following the Phase 1 Commencement Date). Notwithstanding the foregoing, Landlord shall cause all
Punchlist Items that reasonably can be completed within thirty (30) days after Substantial
Completion of the Landlord’s Construction Work to be completed within thirty (30) days after
Substantial Completion of the Landlord’s Construction Work. Except for such Punchlist Items and
except for latent defects and non-compliance of Landlord’s Construction Work with Applicable Laws,
Tenant shall, subject to the terms hereof, be deemed to have accepted the Expansion Premises in the
condition delivered to it “As Is,” provided, however, except as to those items that
Landlord is required to correct pursuant to this Section, Landlord shall partially assign to Tenant
(but without prejudice to any of Landlord’s rights of enforcement) all warranties that it has
received under the construction contract, any subcontract, or from any material supplier.
Notwithstanding the foregoing, if Tenant notifies Landlord within the period beginning on
Substantial Completion of the Landlord’s Construction Work and continuing through the date that is
twelve (12) months thereafter (the “CW Warranty Period”), of (a) latent defects in the
construction of the Landlord’s Construction Work; or (b) non-compliance of Landlord’s Construction
Work with Applicable Laws, then as Landlord’s sole and exclusive obligation with respect thereto,
Landlord shall cause such latent defect or non-compliance promptly to be remedied. All warranty
claims shall be barred and shall lapse unless such claim is made in writing to Landlord, with a
description of the claim made, on or before the expiration of the CW Warranty Period.

     4.2. Tenant Improvements.

          4.2.1 Tenant Improvements. Landlord shall cause the Contractor to commence and
thereafter diligently prosecute the construction of the tenant improvements in the Expansion
Building pursuant to the Work Letter (the “Tenant Improvements”). The Tenant Improvements
shall be performed in a workmanlike manner and in compliance with all Applicable Laws and
substantially in compliance with the Approved TI Plans (as defined in the Work Letter), subject to
minor deviations that do not alter the type, scope and quality of the Tenant Improvements depicted
on the Approved TI Plans. The portion of the TI Costs for which Landlord is responsible (the
“TI Allowance”) shall not exceed (subject to the terms hereof) the TI Allowance Amount (as
defined below). “TI Costs” means all Tenant Delay Costs (as defined below) and costs of the Tenant
Improvements (the “TI Costs”), including the costs of (i) construction, (ii) construction
management by Landlord (which costs shall be stipulated to equal one and one-half percent (1.5%) of
the cost of the Tenant Improvements, including the Excess Cost (as defined below)) (the
“Construction Management Fee”), (iii) space planning, architect, engineering and other
related services, (iv) costs and expenses for labor, material, equipment and fixtures, and (v)
building permits and other taxes, fees, charges and levies by governmental and quasi-governmental
agencies for permits or for inspections of the Tenant Improvements. Notwithstanding the foregoing,
in no event shall the TI Allowance be used for: (w) the purchase of any furniture, personal
property or other non-building system equipment, (x) the cost of work that is not authorized by the
Approved TI Plans (subject to any TI Change) or otherwise approved in writing by Landlord, (y)
costs resulting from any default by Tenant of its obligations under this Lease, or (z) costs that
are recoverable or reasonably recoverable by Tenant from a third party (e.g., insurers, warrantors
or tortfeasors). The “TI Allowance Amount” shall be Forty-Seven and 15/100 Dollars
($47.15) per rentable square foot of the Expansion Building,
plus the amount of any Additional Allowance that Tenant elects to use to pay the cost of the
Tenant Improvements.

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          4.2.2 In the event the estimated total TI Costs (the “Estimated TI Costs”) exceeds the
TI Allowance Amount, Tenant shall pay such overage, as reasonably estimated by Landlord from time
to time (the “Excess Cost”), as the work progresses as follows: on or before the tenth
(10th) day of each month, Landlord shall deliver to Tenant an application for
reimbursement, accompanied by reasonable documentary evidence of the construction costs of such
Tenant Improvements incurred since the last application for reimbursement. On or before the tenth
(10th) day following delivery of such application for reimbursement, Tenant shall pay to
Landlord an amount that (when added to any prior reimbursements of Excess Costs by Tenant) will
equal (a) a fraction, the numerator of which is the amount of TI Costs incurred prior to the date
of the application for reimbursement, and the denominator of which is the Estimated TI Costs, times
(b) the Excess Cost (the “Tenant Reimbursement”). In the event the TI Allowance and the
estimated Excess Cost are not sufficient to cover the actual TI Costs, including all approved
change orders, Landlord shall adjust the Excess Cost accordingly.

          4.2.3 Architects and Consultants. The architect, engineering consultants, design
team, general contractor and subcontractors responsible for the construction of the Tenant
Improvements shall be selected pursuant to the procedures set forth in the Work Letter. Subject to
the terms of the Work Letter, Tenant hereby approves of Ferguson Pape Baldwin Architects as
Landlord’s architect and Reno Contracting as Landlord’s general contractor.

          4.2.4 Completion of Tenant Improvements. The Tenant Improvements shall be deemed
“Substantially Complete” or there shall be “Substantial Completion” if (i) Landlord has
completed, in compliance with all Applicable Laws, all of the Tenant Improvements identified on and
substantially in accordance with the Approved TI Plans (subject only to the Punchlist Items and
minor deviations that do not alter the type, scope and quality of the Tenant Improvements depicted
on the Approved TI Plans) and Tenant is provided with continuous and uninterrupted use of the
applicable portion of the Expansion Premises and the Expansion Building for Tenant’s Permitted Use
(including Tenant’s parking), except to the extent reasonably necessary for Landlord’s Contractor
to complete the Punchlist Items in accordance with Section 4.1.2, and (ii) Landlord has
obtained a certificate of occupancy or temporary certificate of occupancy (or its equivalent)
allowing Tenant to legally occupy the Expansion Premises.

          4.2.5 Warranties. Landlord shall use commercially reasonable efforts (but without
obligation to commence or pursue any litigation) to cause Contractor to complete with reasonable
promptness the Punchlist Items and repair with reasonable promptness all defects in the
construction of the Tenant Improvements in accordance with the Work Letter as to which Tenant
notifies Landlord in writing (which notice Tenant shall give within thirty (30) days following the
Phase 1 Commencement Date). Notwithstanding the foregoing, Landlord shall cause all Punchlist Items
that reasonably can be completed within sixty (60) days after Substantial Completion of the Tenant
Improvements to be completed within sixty (60) days after Substantial Completion of the Tenant
Improvements. Except for such Punchlist Items and except for latent defects and non-compliance of
Tenant Improvements with Applicable Laws, Tenant shall, subject to the terms hereof, be deemed to
have accepted the Expansion Premises in the condition delivered to it “As Is,” provided,
however, except as to those items that Landlord is required to correct pursuant to this
Section, Landlord shall partially assign to Tenant (but without prejudice to any of Landlord’s
rights of enforcement) all warranties that it has received under the construction contract, any
subcontract, or from any material supplier. Notwithstanding the foregoing, if Tenant notifies
Landlord within the period beginning on Substantial Completion of the Tenant Improvements and
continuing through the date that is twelve (12) months thereafter (the “TI Warranty
Period”), of (a) latent defects in the construction of the Tenant Improvements; or (b)
non-compliance of Tenant Improvements with Applicable Laws, then as Landlord’s sole and exclusive
obligation with respect thereto, Landlord shall cause such latent defects or non-compliance
promptly to be remedied. All warranty claims shall be barred and shall lapse unless such claim is
made in writing to Landlord, with a description of the claim made, on or before the expiration of
the TI Warranty Period.

     4.3. Additional Allowance. Landlord shall, at Tenant’s request, provide an additional
tenant improvement allowance not to exceed Thirty-Five Dollars ($35.00) per rentable square foot of
the Expansion Premises (the “Additional Allowance”), which amount may be used by Tenant to
increase the scope of Landlord’s Construction Work or the Tenant Improvements
pursuant to the terms and conditions contained in the Work Letter and/or pay for any other
costs payable by Tenant pursuant to the Work Letter. In the event Tenant elects to use all or any

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portion of the Additional Allowance, Tenant shall pay to Landlord, as Rent, an amount equal to the
Additional Allowance disbursed by Landlord, together with interest thereon at the rate of nine
percent (9%) per annum. Tenant shall make payments in respect of the Additional Allowance plus
interest thereon in equal monthly installments so that the full amount shall be paid on or before
the expiration of the initial Term. Tenant shall pay such amounts with the payment of Basic Annual
Rent for each month. If Tenant has not paid the full amount of the Additional Allowance plus
interest thereon at the expiration or earlier termination of this Lease, then upon the expiration
or termination of this Lease, Tenant shall, within thirty (30) days thereafter, pay the unpaid
portion of such amount to Landlord. The payments Tenant is requested to make in respect of the
Additional Allowance shall constitute “Additional Rent.”

5. Possession and Commencement Date.

     5.1. Tenant’s Access. So long as Tenant does not (in Landlord’s reasonable judgment)
unreasonably or unnecessarily interfere with Landlord’s Construction Work or the Tenant
Improvements, upon reasonable prior written notice to Landlord, Tenant may enter upon any Phase
prior to the respective Commencement Date for the purpose of, among other things, installing
improvements (including cabling) or the placement of personal property; provided,
however, that Tenant shall furnish to Landlord evidence satisfactory to Landlord that
insurance coverages required of Tenant under the provisions of Article 23 are in effect,
and such entry shall be subject to all the terms and conditions of this Lease other than the
payment of Rent. Tenant shall reimburse Landlord for all actual documented incremental costs that
result from such entry and indemnify, defend and hold harmless Landlord from and against any loss,
cost, claim, lawsuit, liability or expense (including reasonable attorneys’ fees and disbursements)
arising out of any entry and/or activities upon the Expansion Premises by Tenant or Tenant’s
Agents.

     5.2. Possession and Commencement Date.

          5.2.1 Diversified Building Premises. Tenant hereby acknowledges that immediately
prior to the Diversified Building Premises Commencement Date, Tenant occupied the Diversified
Building Premises and that Tenant is in possession of the Diversified Building Premises, and is
familiar with the condition thereof and accepts the Diversified Building Premises in its “as is”
condition with all faults, and Landlord makes no representation or warranty of any kind with
respect the Diversified Building Premises, and Landlord will have no obligation to improve, alter
or repair the Diversified Building Premises, except as specifically set forth herein. Tenant
acknowledges that Tenant was the prior owner of the Diversified Building and as such is fully aware
of the current conditions of the Diversified Building.

          5.2.2 Phase 1 Premises.

               (a) Landlord shall endeavor to tender possession of the Phase 1 Premises to Tenant on or
before the Phase 1 Estimated Delivery Date. If Landlord’s Construction Work or the Tenant
Improvements as required pursuant to the terms of the Work Letter are not Substantially Complete on
or before the Phase 1 Estimated Delivery Date for any reason whatsoever, then, except as provided
below, this Lease shall not be void or voidable, Landlord shall not be liable to Tenant for any
loss or damage resulting therefrom and the Phase 1 Commencement Date shall not occur until
Substantial Completion of Landlord’s Construction Work and the Tenant Improvements occurs;
provided, however, if the satisfaction of the requirements for Substantial
Completion of Landlord’s Construction Work or the Tenant Improvements have been actually delayed by
any Tenant Delay, then, subject to the terms hereof, Substantial Completion of Landlord’s
Construction Work and the Tenant Improvements shall be deemed to occur when (as reasonably
determined by Landlord) Substantial Completion of Landlord’s Construction Work and the Tenant
Improvements would have occurred if such Tenant Delay had not occurred. Within thirty (30) days
after Substantial Completion of Landlord’s Construction Work and the Tenant Improvements,
Landlord’s architect shall calculate and certify in writing to Landlord and Tenant the Rentable
Area of the Phase 1 Premises in accordance with Article 9. “Tenant Delay” shall
mean: (1) delays or failure of Tenant or Tenant’s architect to deliver items in accordance with the
Work Letter attached hereto as Exhibit J; (2) Tenant’s failure to timely fulfill its obligations as
set forth in the Work Letter within the time periods set forth therein; (3) delays caused by CW
Tenant Change Order Requests (as defined in the Work Letter) or TI Tenant Change Order Requests (as
defined in the Work Letter);
4) unavailability of materials, components or finishes for the Tenant Improvements that have
an unusually long lead-time for delivery; (5) a willful or negligent act or

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omission of Tenant,
Tenant’s Agents that interferes with the progress of the work, (6) any delay that results from
Tenant’s use of an architect other than Ferguson Pape Baldwin Architects for purposes of the TI
Program and the Schematic TI Plans, or (7) any other event or circumstance described as a Tenant
Delay in the Work Letter. Landlord shall not assess any day towards a Tenant Delay for delays
caused solely by Landlord’s contractors, Landlord or any third parties or due to Force Majeure.
Notwithstanding anything above to the contrary, (i) the first ten (10) days of Tenant Delays (if
any) associated with any CW Tenant Change Order Request or TI Tenant Change Order Request shall not
be deemed a Tenant Delay, (ii) no delay shall be considered a Tenant Delay unless Landlord provides
Tenant written notice of such Tenant Delay, to the extent Landlord and/or management personnel of
Landlord’s contractor(s) are aware of such Tenant Delay, and Tenant fails to cure such delay within
one (1) business day; provided that no such notice and cure period shall be required if such delay
is with respect to interference with the Landlord’s construction activities and Landlord has
previously notified Tenant of similar Tenant Delays, (iii) no delay shall be considered a Tenant
Delay in the event Substantial Completion of Landlord’s Construction Work and the Tenant
Improvements occurs on or before the Phase 1 Estimated Delivery Date. Landlord and Contractor
shall take commercially reasonable actions, remedial or otherwise, to complete the Landlord’s
Construction Work and the Tenant Improvements by the Phase 1 Estimated Delivery Date
notwithstanding any Tenant Delay. All additional cost and expense payable by Landlord, if any, to
complete the Landlord’s Construction Work or the Tenant Improvements due to Tenant Delay
(“Tenant Delay Costs”), shall constitute TI Costs, and to the extent the TI Costs exceed
the TI Allowance Amount, Tenant shall pay such actual and documented additional costs and expenses
as “Excess Costs” in accordance with Section 4.2.2 of this Lease.

               (b) Landlord and Tenant shall each execute and deliver to the other a factually correct
written acknowledgment of the actual Phase 1 Commencement Date and the Expiration Date when such is
established in the form of Exhibit F, and shall attach it to this Lease as Exhibit F-1. Failure to
execute and deliver such acknowledgement, however, shall not affect the Phase 1 Commencement Date
or Landlord’s or Tenant’s liability hereunder. Failure by Tenant to obtain validation by any
medical review board or other similar governmental licensing of the Expansion Premises required for
the Permitted Use by Tenant shall not serve to extend the Phase 1 Commencement Date.

          5.2.3 Phase 2 Premises.

               (a) In the event Tenant elects to occupy the Phase 2 Premises before the Phase 2 Estimated
Delivery Date, then Tenant shall deliver to Landlord at least five (5) business days before the
date Tenant elects to occupy the Phase 2 Premises a written notice setting forth the date Tenant
intends to occupy the Phase 2 Premises (collectively, the “Phase 2 Commencement Date
Notice”).

               (b) Landlord shall tender possession of the Phase 2 Premises to Tenant upon the Phase 2
Commencement Date. On the Phase 2 Commencement Date, Landlord and Tenant shall each execute and
deliver to the other a factually correct written acknowledgement of the actual Phase 2 Commencement
Date and the Expiration Date when established, in the form Exhibit F, and shall attach it to this
Lease as Exhibit F-2. Failure to execute and deliver such acknowledgement, however, shall not
affect the Phase 2 Commencement Date or Tenant’s liability hereunder.

          5.2.4 Phase 3 Premises.

               (a) In the event Tenant elects to occupy the Phase 3 Premises (which shall include all, and
not less than all, of the remainder unoccupied portion of the Expansion Building) before the Phase
3 Estimated Delivery Date, Tenant shall deliver to Landlord at least five (5) business days a
written notice setting forth the date that Tenant intends to occupy the Phase 3 Premises
(collectively, the “Phase 3 Commencement Date Notice”).

               (b) Landlord shall tender possession of the Phase 3 Premises to Tenant upon the Phase 3
Commencement Date. On the Phase 3 Commencement Date, Landlord and Tenant shall each execute and
deliver to the other factually correct written acknowledgement of the actual Phase 3 Commencement
Date and the Expiration Date when established, in the form
Exhibit F, and shall attach it to this Lease as Exhibit F-3. Failure to execute and deliver
such

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acknowledgement, however, shall not affect the Phase 3 Commencement Date or Tenant’s liability
hereunder.

          5.2.5 Tenant’s Termination and Abatement Rights. 

               (a) First Milestone Termination Right. Notwithstanding the foregoing, in the event
Landlord has not commenced the grading of the land where the Expansion Building will be located
(“Grading Work”) by September 1, 2007, as such date may be equitably extended to reflect
any Tenant Delay and any Force Majeure delays (“Outside Date Termination Date”), then
Tenant shall have the right to terminate this Lease by notice to Landlord given no later than
thirty (30) days following such date, at which time neither party shall have any further right or
obligation hereunder (except for those terms and provisions which expressly survive the expiration
or sooner termination of this Lease).

               (b) Second Milestone Abatement and Termination Right. Notwithstanding the foregoing,
in the event that Substantial Completion of the Tenant Improvements has not occurred by October 1,
2008, as such date may be equitably extended to reflect any Tenant Delay and any Force Majeure
delays (the “TI Completion Outside Date”), then Tenant shall be entitled to one (1) day of
abatement of Expansion Premises Basic Annual Rent for the Phase 1 Premises for every day past the
applicable TI Completion Outside Date that Substantial Completion of the Tenant Improvements has
not occurred. In the event that Substantial Completion of the Tenant Improvements has not occurred
by October 1, 2009, as such date may be equitably extended to reflect any Tenant Delay and any
Force Majeure delays (the “TI Completion Termination Date”), then Tenant shall have the
right to terminate this Lease by notice to Landlord given no later than thirty (30) days following
such date, at which time neither party shall have any further right or obligation hereunder (except
for those terms and provisions which expressly survive the expiration or sooner termination of this
Lease); provided, however, for purposes of this Section 5.2.5(b), in no
event shall the period of excused delay for Force Majeure exceed ninety (90) days in the aggregate.

6. Rent.

     6.1. Diversified Building Premises. Starting on the Execution Date, Tenant shall pay
to Landlord as Basic Annual Rent for the Diversified Building Premises, the rent set forth on the
rent schedule attached hereto as Schedule 1, subject to adjustments in accordance with
Article 7. The Diversified Building Premises Basic Annual Rent shall be paid in equal
monthly installments on or before the first day of the applicable month.

     6.2. Expansion Premises. Starting on the Phase 1 Commencement Date, Tenant shall pay
to Landlord as Basic Annual Rent for the Expansion Premises, the product of (a) the rate per
rentable square feet set forth in Section 2.3 (as adjusted in accordance with Article
7), and (b) the rentable square feet of the Phases that are included in the Expansion Premises
from time to time, subject to adjustment pursuant to the terms of this Lease, including, without
limitation: (i) the Expansion Premises Basic Annual Rent shall increase on the Phase 2 Commencement
Date by the product of (1) the number of rentable square feet of the Phase 2 Premises and (2) the
same Expansion Premises Basic Annual Rent rate per rentable square foot that applies to the
Expansion Premises from time to time; (ii) the Expansion Premises Basic Annual Rent shall increase
on the Phase 3 Commencement Date by the product of (1) the number of rentable square feet of the
Phase 3 Premises and (2) the same Expansion Premises Basic Annual Rent rate per rentable square
foot that applies to the Expansion Premises from time to time; and (iii) the biennial rent
adjustments in accordance the provisions of Article 7 hereof. Expansion Premises Basic
Annual Rent and the TI Allowance Amount shall be paid in equal monthly installments on or before
the first day of the applicable month.

     6.3. In addition to Basic Annual Rent, from and after the Commencement Date, Tenant shall pay
to Landlord as additional rent (“Additional Rent”) at times hereinafter specified in this
Lease (a) amounts related to Insurance Costs, Utility Costs and Taxes (each as defined below) and
(b) any other amounts that Tenant agrees to pay under the provisions of this Lease that are owed to
Landlord, including, without limitation, any and all other sums that may become due by reason of
any default of Tenant or failure on Tenant’s part to comply with the agreements,
terms, covenants and conditions of this Lease to be performed by Tenant, after notice and the
lapse of any applicable cure periods.

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     6.4. Basic Annual Rent (including the Diversified Building Premises Basic Annual Rent and the
Expansion Premises Basic Annual Rent) and Additional Rent shall together be denominated
“Rent.” Rent shall be paid to Landlord, without, except as otherwise provided herein,
abatement, deduction or offset, in lawful money of the United States of America at the office of
Landlord as set forth in Section 2.10 or to such other person or at such other place as
Landlord may from time designate in writing. In the event the Commencement Date for any Phase
commences or ends on a day other than the first day of a calendar month, then the Rent for such
fraction of a month shall be prorated for such period on the basis of a thirty (30) day month and
shall be paid at the then-current rate for such fractional month.

7. Rent Adjustments.

     7.1. Initial Term.

          7.1.1 Diversified Building Premises. The Diversified Building Premises Basic Annual
Rent per rentable square foot of the Diversified Building Premises shall be increased in accordance
with Schedule 1 attached hereto.

          7.1.2 Expansion Premises. The Expansion Premises Basic Annual Rent per rentable
square foot of the Expansion Premises shall be increased on every other anniversary (i.e., the
second anniversary, the fourth anniversary, the sixth anniversary, etc.) of the Phase 1
Commencement Date by five percent (5%) of the Expansion Premises Basic Annual Rent per rentable
square foot of the Expansion Premises immediately preceding such increase. The monthly installment
of Expansion Premises Basic Annual Rent that is due for the month in which each such adjustment
occurs (the installment due immediately before such month) shall be the first installment that will
be increased to reflect such increase in Expansion Premises Basic Annual Rent.

     7.2. Extended Term.

          7.2.1 Diversified Building Premises. The Diversified Building Premises Basic Annual
Rent for the Diversified Building Premises shall be adjusted on the first (1st) day of
each Extended Term to the amount calculated in accordance with Section 42.1, and shall be
adjusted every twenty-four (24) months thereafter by five percent (5%) of the Diversified Building
Premises Basic Annual Rent per rentable square foot of the Diversified Building Premises
immediately preceding such increase. The monthly installment of the Diversified Building Premises
Basic Annual Rent that is due for the month in which each such adjustment occurs (the installment
due immediately before such month) shall be the first installment that will be increased to reflect
such increase in the Diversified Building Premises Basic Annual Rent.

          7.2.2 Expansion Premises. The Expansion Premises Basic Annual Rent for the Expansion
Premises shall be adjusted on the first (1st) day of each Extended Term to the amount
calculated in accordance with Section 42.1, and shall be adjusted every twenty-four (24)
months thereafter by five percent (5%) of the Expansion Premises Basic Annual Rent per rentable
square foot of the Expansion Premises immediately preceding such increase. The monthly installment
of the Expansion Premises Basic Annual Rent that is due for the month in which each such adjustment
occurs (the installment due immediately before such month) shall be the first installment that will
be increased to reflect such increase in the Expansion Premises Basic Annual Rent.

8. Taxes.

     8.1. Commencing with the Commencement Date and continuing for each calendar year or, at
Landlord’s option, tax year (each such “tax year” being a period of twelve (12) consecutive
calendar months for which the applicable taxing authority levies or assesses Taxes), for the
balance of the Term, Tenant shall pay to Landlord the amount of all Taxes levied and assessed for
any such year upon the Property (including the Diversified Space). “Taxes” shall mean all
government impositions including, without limitation, property tax costs consisting of real and
personal property taxes and assessments (including amounts due under any
improvement bond upon the Property or any portion thereof, including the Parcel or parcels of
real property upon which the Buildings are located or assessments levied in lieu thereof) imposed
by any federal, state, regional, local or municipal governmental authority, agency or subdivision
(each, a “Governmental Authority”) on the Property or improvements thereon, any tax on or

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measured by gross rentals received from the rental of space in the Buildings, or tax based on the
square footage of the Premises or the Buildings as well as any parking charges, utilities
surcharges, or any other costs levied, assessed or imposed by, or at the direction of, or resulting
from statutes or regulations, or interpretations thereof, promulgated by any Governmental Authority
in connection with the use or occupancy of the Premises or the parking facilities exclusively
serving the Premises; any tax on this transaction or this Lease; provided, however,
that “Taxes” shall in no event include any franchise or federal or state income tax, excess
profit taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes or
any tax based on net rentals received from the rental of space in the Buildings. Any amount paid
by Tenant for any partial year of the Term shall be prorated on the basis of the number of days of
such partial year. Payment shall be made in the following manner: Tenant shall pay to Landlord
the amounts owed under this Article 8 within thirty (30) days after Landlord gives notice
to Tenant of the amount of such Taxes payable by Tenant (or not less than fifteen (15) days prior
to delinquency, whichever is later). Landlord also shall provide Tenant with a copy of the
applicable tax bill or tax statement from the relevant taxing authority. Notwithstanding the
foregoing, if Applicable Laws allow any such Taxes to be paid in installments, then Tenant may make
such payments to Landlord in installments, provided that each such installment shall be payable to
Landlord not less than ten (10) days prior to the date upon which payment of the applicable
installment to the taxing authority becomes delinquent. In addition to any other amounts due from
Tenant to Landlord, if Tenant fails to pay Taxes to Landlord as herein required, Tenant shall pay
to Landlord the amount of any interest, penalties or late charges imposed by any governmental
authority for late payment. “Applicable Laws” means all federal, state, municipal and
local laws, codes, ordinances, rules and regulations of Governmental Authorities, committees,
associations, or other regulatory committees, agencies or governing bodies having jurisdiction over
the Property, Landlord or Tenant, including both statutory and common law and hazard waste rules
and regulations.

          8.1.1 Tenant shall have the right, by appropriate proceedings, to protest or contest in good
faith any assessment or reassessment of Taxes, any special assessment, or the validity of any Taxes
or of any change in assessment or tax rate; provided, however, that prior to any
such challenge Tenant must either (a) pay the Taxes alleged to be due in their entirety and seek a
refund from the appropriate authority or (b) post a bond in an amount sufficient to ensure full
payment of the Taxes, including any potential interest, late charge and penalties. Upon a final
determination with respect to any such contest or protest, Tenant shall promptly pay to the
appropriate Governmental Authority all sums found to be due with respect thereto. In any such
protest or contest, Tenant may act in its own name, and at the request of Tenant, Landlord shall
cooperate with Tenant in any way Tenant may reasonably require in connection with such contest or
protest, including signing such documents as Tenant reasonably shall request, provided that
such cooperation shall be at no expense to Landlord and shall not require Landlord to attend any
appeal or other hearing. Any such contest or protest shall be at Tenant’s sole expense, and if any
penalties, interest or late charges become payable with respect to the Taxes as a result of such
contest or protest, Tenant shall pay the same.

          8.1.2 If Tenant obtains a refund as the result of Tenant’s protest or contest, and subject to
Tenant’s obligation to pay Landlord’s costs (if any) associated therewith, Tenant shall be entitled
to such refund to the extent it relates to the Property during the Term.

     8.2. If, at any time during the Term under the laws of any Governmental Authority, a tax or
excise on rent or any other tax howsoever described is levied or assessed by any such political
body against Landlord on account of rentals payable to Landlord hereunder, such tax or excise shall
be considered “Taxes” for the purposes of this Article 8, although any amount
assessed against Landlord as state or federal income tax shall not be deemed “Taxes.”

     8.3. To the extent Landlord is required by a lender, Tenant shall timely pay all tax and
insurance impound payments due on the Property.

     8.4. Taxes on Tenant’s Property.

          8.4.1 Tenant shall pay at least twenty (20) days prior to delinquency any and all taxes levied
against any personal property or trade fixtures placed by Tenant in or about the Property.

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          8.4.2 If any such taxes on Tenant’s personal property or trade fixtures are levied against
Landlord or Landlord’s property or, if the assessed valuation of the Buildings is increased by
inclusion therein of a value attributable to Tenant’s personal property or trade fixtures, and if
Landlord, after written notice to Tenant, pays the taxes based upon any such increase in the
assessed valued of the Buildings, then Tenant shall, upon demand, repay to Landlord the taxes so
paid by Landlord.

     8.5. Cut-Off Date. Notwithstanding anything herein to the contrary, Tenant shall not
be responsible for Taxes attributable to any calendar year which are first billed to Tenant more
than eighteen (18) months after the expiration of the applicable calendar year, except with respect
to supplemental Taxes.

9. [Intentionally Omitted].

10. Security Deposit.

     10.1. Pursuant to the Original Illumina Lease, Tenant has deposited with Landlord an amount
equal to $1,911,855 as the security deposit under the Original Illumina Lease (the “Original
Illumina Lease Security Deposit”), and (a) from and after the Execution Date, Landlord shall
continue to hold a portion of the Original Illumina Lease Security Deposit in an amount equal to
$40,836.75 (the “Security Deposit”), in accordance with the terms and conditions of this
Section 10, (b) from and after the Execution Date, Landlord shall hold a portion of
Original Illumina Lease Security Deposit equal to $865,177.50 in accordance with the terms and
conditions of Section 8 of the Illumina Lease, and (c) Landlord shall return the remaining portion
of the Original Illumina Lease Security Deposit in an amount equal to $1,005,840.75 to Tenant.

     10.2. The Security Deposit shall be held by Landlord as security for the faithful performance
by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by
Tenant during the period commencing on the Execution Date and ending upon the expiration or
termination of this Lease. In addition, Tenant shall deposit the following amounts with Landlord
and the Security Deposit shall be increased by such amounts: (a) a sum equal to $343,274.40 upon
commencement of construction of the Landlord’s Construction Work, (b) a sum equal to $180,600.00 on
the Phase 2 Commencement Date, and (c) a sum equal to $189,630.00 on the Phase 3 Commencement Date.
If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any
provision relating to the payment of Rent, then Landlord may (but shall not be required to) use,
apply or retain all or any part of the Security Deposit for the payment of any Rent or any other
sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by
reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then
Tenant shall, within twenty (20) days following demand therefor, deposit cash with Landlord in an
amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to
do so shall be a material breach of this Lease. Landlord shall not be required to keep this
Security Deposit separate from its general fund, and Tenant shall not be entitled to interest on
the Security Deposit. The provisions of this Article 10 shall survive the expiration or
earlier termination of this Lease.

     10.3. In the event Landlord receives documentation from Tenant that demonstrates to Landlord’s
reasonable satisfaction that Tenant has achieved a rating of “BBB” or better from Standard & Poor’s
Corporation (“S&P”), or “Baa” or better from Moody’s Investors Service, Inc.
(“Moody’s”)(or in each case any successor thereof), and Tenant is not then in Default,
Landlord shall return a portion of the Security Deposit so that the remaining Security Deposit
equals one (1) month of Basic Annual Rent for the entire Premises to Tenant; provided,
however, in the event (a) Tenant subsequently has neither a S&P rating of “BBB” or better
nor a Moody’s rating of “Baa” or better, or (b) Tenant assigns its interest in this Lease to
another person or entity in accordance with Section 27 hereof, unless such assignee
satisfies the requirements set forth in this Section 10.3, Tenant shall, within fifteen
(15) days after written notice thereof, deposit an amount with Landlord sufficient to restore said
Security Deposit to the amount set forth in Section 2.7 and Tenant’s failure to do so shall
constitute a Default of this Lease.

     10.4. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the
Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due
Landlord for all periods prior to the filing of such proceedings.

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     10.5. Landlord may deliver to any purchaser of Landlord’s interest in the Property the funds
deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further
liability with respect to such deposit. This provision shall also apply to any subsequent
transfers.

     10.6. If Tenant is not then in Default under this Lease nor is any event then occurring which
with the giving of notice or the passage of time, or both, would constitute a Default hereunder,
then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s
option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the
expiration or earlier termination of this Lease.

     10.7. The Security Deposit may be in the form of cash, a letter of credit or any other
security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except
during Default, deliver a letter of credit (“L/C Security”) as the entire Security Deposit,
as follows.

          10.7.1 If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and
maintain in full force and effect throughout the Term, a letter of credit in substantially the form
of Exhibit K issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security
Deposit, with an initial term of at least one year. If, at the Expiration Date, any Rent remains
uncalculated or unpaid, then: (a) Landlord shall with reasonable diligence complete any necessary
calculations; (b) Tenant shall extend the expiry date of such L/C Security from time to time as
Landlord reasonably requires; and (c) in such extended period, Landlord shall not unreasonably
refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse
Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of
L/C Security or its replacement or extension

          10.7.2 If Tenant delivers to Landlord satisfactory L/C Security in place of the entire
Security Deposit, Landlord shall promptly remit to Tenant any cash Security Deposit Landlord
previously held.

          10.7.3 Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same
manner and for the same purposes as the Security Deposit, if: (a) an uncured Default exists; (b)
as of the date thirty (30) days before any L/C Security expires (even if such scheduled expiry date
is after the Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for
such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of
(i) six (6) months after the then-current Expiration Date or (ii) the date one year after the
then-current expiry date of the L/C Security; (c) the L/C Security provides for automatic renewals,
Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to
do so within ten (10) business days; (d) Tenant fails to pay (when and as Landlord reasonably
requires) any bank charges for Landlord’s transfer of the L/C Security; or (e) the issuer of the
L/C Security ceases, or announces that it will cease, to maintain an office in the city where
Landlord may present drafts under the L/C Security. This Section does not limit any other
provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances.

          10.7.4 Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw
under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a
wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no
legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and
for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties
shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to
Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the
issuer of the L/C Security that Landlord’s draw was erroneous.

          10.7.5 If Landlord transfers its interest in the Property, then Tenant shall at Tenant’s
expense, within ten (10) business days after receiving a request from Landlord, deliver (and, if
the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s
grantee as substitute beneficiary; provided, however, in the event Landlord
transfers
its interest in the Property more than once in a twelve (12) month period, Landlord shall pay
any fee owed to the issuing bank in connection with any such additional transfer. If the required
Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer
requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

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11. Use.

     11.1. Tenant shall use the Premises for the purpose set forth in Section 2.8, and
shall not use the Premises, or permit or suffer the Premises to be used, for any other purpose
without Landlord’s prior written consent, which consent Landlord may withhold in its reasonable
discretion.

     11.2. Tenant shall not use or occupy the Property in violation of Applicable Laws; zoning
ordinances; or the certificate of occupancy issued for the Buildings, and shall, upon five (5)
days’ written notice from Landlord, discontinue any use of the Property that is declared or claimed
by any Governmental Authority having jurisdiction to be a violation of any of the above, or that
Landlord has a reasonable basis to believe that such use violates any of the above and Landlord
identifies such basis in its notice to Tenant. Tenant shall comply with any direction of any
Governmental Authority having jurisdiction that shall, by reason of the nature of Tenant’s use or
occupancy of the Property, impose any duty upon Tenant with respect to the Property or with respect
to the use or occupation thereof.

     11.3. Tenant shall not do or permit to be done anything that will invalidate or increase the
cost of any fire, environmental, extended coverage or any other insurance policy covering the
Property, and shall comply with all rules, orders, regulations and requirements of the insurers of
the Property, and Tenant shall promptly, upon demand, reimburse Landlord for any additional premium
charged for such policy by reason of Tenant’s failure to comply with the provisions of this
Article 11.

     11.4. Tenant shall, at its sole cost and expense, promptly and properly observe and comply
with all present and future orders, regulations, directions, rules, laws, ordinances, and
requirements of all Governmental Authorities (including, without limitation, state, municipal,
county and federal governments and their departments, bureaus, boards and officials) arising from
the use or occupancy of the Property, including, without limitation, the requirements of Americans
with Disabilities Act of 1990 (together with regulations promulgated pursuant thereto, the
“ADA”). Tenant’s obligations under this Section 11.4 shall include any Alterations
to the Property (including (a) the Diversified Building and, (b) from and after the Phase 1
Commencement Date, the Expansion Building) that Tenant is required or elects to make pursuant to
the terms of this Lease; provided, however, Landlord shall be responsible for ADA
compliance of the Landlord’s Construction Work and the Tenant Improvements.

     11.5. Tenant shall keep all doors opening onto public corridors closed, except when in use for
ingress and egress.

     11.6. No additional locks or bolts of any kind shall be placed upon any of the doors or
windows by Tenant, nor shall any changes be made to existing locks or the mechanisms thereof
without Landlord’s prior written consent. Tenant shall, upon termination of this Lease, return to
Landlord all keys to offices and restrooms either furnished to or otherwise procured by Tenant. In
the event any key so furnished to Tenant is lost, Tenant shall pay to Landlord the cost of
replacing the same or of changing the lock or locks opened by such lost key if Landlord shall deem
it necessary to make such change

     11.7. No awnings or other projections shall be attached to any outside wall of the Buildings.
No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with,
any window or door of the Buildings other than Landlord’s standard window coverings. Neither the
interior nor exterior of any windows shall be coated or otherwise sunscreened without Landlord’s
prior written consent, nor shall any bottles, parcels or other articles be placed on the
windowsills. No equipment, furniture or other items of personal property shall be placed on any
exterior balcony without Landlord’s prior written consent.

     11.8. Subject to Diversified’s right to place signs on the Property in accordance with Section
32 of the Diversified Lease, Tenant shall, at Tenant’s sole cost and expense, have the exclusive
right to install the maximum amount of any legally permitted signage on the Property
(including any building thereon) (“Signage”), which Signage shall be subject to
Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or
delayed. Tenant shall keep the Signage in good condition and repair. The size, design, and other
physical aspects of any sign shall be subject to Landlord’s written approval prior to installation,
which approval will not unreasonably be withheld, any covenants, conditions, or restrictions

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encumbering the Property and, any Applicable Laws. The cost of the sign(s), including but not
limited to the permitting, installation, maintenance and removal thereof shall be at Tenant’s sole
cost and expense. If Tenant fails to maintain its sign(s), or if Tenant fails to remove such
sign(s) upon termination of this Lease, or fails to repair any damage caused by such removal
(including without limitation, painting the damaged portions of the Buildings and any other
portions of the Buildings that Landlord reasonably determines in good faith shall be painted so
that repainting the damaged portion of the Buildings does not adversely affect the visual
appearance of the Buildings, if required by Landlord; provided, however, in no
event shall Landlord require Tenant to repaint an entire Building), Landlord may do so at Tenant’s
expense. Tenant shall on demand reimburse Landlord for all costs incurred by Landlord to effect
such removal, which amounts shall be deemed Additional Rent and shall include without limitation,
all sums disbursed, incurred or deposited by Landlord, including Landlord’s costs, expenses and
actual attorneys’ fees with interest thereon. Tenant shall indemnify, defend and hold harmless
Landlord from and against any loss, cost, claim, lawsuit, liability or expense (including
reasonable attorneys’ fees and disbursements) arising directly or indirectly out of Tenant’s
failure to perform any of its obligations under this Section 11.8.

     11.9. Tenant shall only place equipment within the Premises with floor loading consistent with
the structural design of the Buildings without Landlord’s prior written approval, and such
equipment shall be placed in a location designed to carry the weight of such equipment.

     11.10. Tenant shall not (a) use or allow the Property to be used for any unlawful or
reasonably objectionable purposes or (b) cause, maintain or permit any nuisance or waste in, on or
about the Property (other than the Diversified Space).

     11.11. Except for Landlord’s Construction Work and Tenant Improvement work, Tenant shall be
responsible for all liabilities, costs and expenses arising out of or in connection with the
compliance of the Property (other than the Diversified Space) with the ADA, and Tenant shall
indemnify, defend and hold harmless Landlord from and against any loss, cost, claim, lawsuit,
liability or expense (including reasonable attorneys’ fees and disbursements) arising out of any
failure of the Property (other than the Diversified Space) to comply with the ADA. Notwithstanding
the foregoing, Landlord represents and warrants that upon Substantial Completion of Landlord’s
Construction Work and the Tenant Improvement work, the Expansion Building shall comply with all
Applicable Laws, including the ADA and any compliance costs as a result of a breach of this
representation and warranty shall be at Landlord’s sole cost and expense and Landlord shall
indemnify, defend and hold harmless Tenant from and against any loss, cost, claim, lawsuit,
liability or expense (including reasonable attorneys’ fees and disbursements) arising out of any
failure of the Landlord’s Construction Work or the Tenant Improvements to comply with the ADA. The
provisions of this Section 11.11 shall survive the expiration or earlier termination of
this Lease.

12. Diversified Lease and Subdivision.

     12.1. Diversified Lease. From and after the Commencement Date, (a) Tenant shall be
responsible for paying all amounts with respect to Taxes, Insurance Costs, Utility Costs and any
other costs and expenses Landlord is required to pay in connection with the Diversified Space in
accordance with Article 9 of the Diversified Lease, and (b) Landlord assumes, and is responsible
for performing, all of the obligations of the landlord under and related to the Diversified Lease
(other than the payment of expenses in accordance with Section 12.1(a) above).
Notwithstanding the foregoing, (x) Tenant is solely responsible for maintaining the Property (other
than the Diversified Space) in accordance with the terms and conditions of this Lease, and (y)
Diversified is solely responsible for maintaining the Diversified Space pursuant to Section 11(b)
of the Diversified Lease.

     12.2. Estoppel. Tenant certifies that (a) the Diversified Lease is unmodified and in
full force and effect and (b) to Tenant’s knowledge, there are not any uncured defaults on the part
of landlord or the tenant under the Diversified Lease.

     12.3. Recreation Facilities. Tenant acknowledges that Diversified has certain rights
to the Property (excluding the Expansion Building) pursuant to the Diversified Lease, including,
without limitation, the right to use: (a) the Diversified Building lobby, utility room, common
corridors and hallways, 5 covered reserved parking spaces, uncovered parking areas, stairways &
elevators and access to other generally understood public or common areas (“Diversified

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Building Common Areas”), and (b) the full court basketball/sports courts, outdoor seating
areas, dressing, locker and working rooms, restrooms, and showers located on the Property
(collectively, the “Recreation Facilities” and, together with the Diversified Building
Common Areas, the “Diversified Areas”). Diversified shall have the non-exclusive right to
use the Diversified Areas 24 hours a day, 7 days a week other than Diversified’s exclusive right to
use the 5 covered reserved parking spaces pursuant to the Diversified Lease. Tenant hereby agrees
that it shall not regulate, restrict or charge any fees in connection with Diversified’s use of the
Diversified Areas.

     12.4. Subdivision. Landlord may subdivide Parcel 3 so that it will consist of two
lots that may be legally conveyed in accordance with California’s Subdivision Map Act. At
Landlord’s request, Tenant shall execute, acknowledge and deliver such further instruments and do
such further acts as may be necessary to modify the subdivision of such property. Tenant shall not
oppose or object to any changes or modifications to the subdivision for such property.

13. Brokers.

     13.1. Tenant represents and warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this Lease other than Steve Rosetta and Ted Simpson,
Cushman & Wakefield (“Tenant’s Broker”), and that it knows of no other real estate broker
or agent that is or might be entitled to a commission in connection with this Lease. Landlord
shall compensate Tenant’s Broker in relation to this Lease pursuant to a separate agreement between
Landlord and Landlord’s Broker (the “Commission Agreement”).

     13.2. Landlord represents and warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this Lease other than Doug Lozier at CB Richard
Ellis, Inc. (“Landlord’s Broker”), and that it knows of no other real estate broker or
agent that is or might be entitled to a commission in connection with this Lease. Landlord shall
compensate Landlord’s Broker in relation to this Lease pursuant to the Commission Agreement.

     13.3. Tenant acknowledges and agrees that the employment of brokers by Landlord is for the
purpose of solicitation of offers of leases from prospective tenants and that no authority is
granted to any broker to furnish any representation (written or oral) or warranty from Landlord
unless expressly contained within this Lease. Landlord is executing this Lease in reliance upon
Tenant’s representations, warranties and agreements contained within Section 13.1.

     13.4. Tenant agrees to indemnify, defend and hold Landlord harmless from any and all cost or
liability for compensation claimed by any other broker or agent, other than Tenant’s Broker,
employed or engaged by it or claiming to have been employed or engaged by Tenant. Landlord agrees
to indemnify, defend and hold Tenant harmless from any and all cost or liability for compensation
claimed by any other broker or agent, other than Landlord’s Broker, employed or engaged by it or
claiming to have been employed or engaged by Landlord.

14. Holding Over.

     14.1. If, with Landlord’s prior written consent, Tenant holds possession of all or any part of
the Property after the Term, Tenant shall become a tenant from month to month after the expiration
or earlier termination of the Term, and in such case Tenant shall continue to pay (a) the Basic
Annual Rent in accordance with Article 6, as adjusted in accordance with Article 7,
and (b) any amounts for which Tenant would otherwise be liable under this Lease if this Lease were
still in effect, including, without limitation, payments for Taxes and insurance. Any such
month-to-month tenancy shall be subject to every other term, covenant and agreement contained
herein.

     14.2. Notwithstanding the foregoing, if Tenant remains in possession of the Property after the
expiration or earlier termination of the Term without Landlord’s prior written consent, Tenant
shall become a tenant at sufferance subject to the terms and conditions of this Lease, except that
the per diem Basic Annual Rent shall be equal to: (a) for the first three (3) months
that Tenant remains in possession of the Property after the expiration or earlier termination
of this Lease, one hundred twenty-five percent (125%) of the Basic Annual Rent in effect during
the last thirty (30) days of the Term; and (b) for any time thereafter that Tenant remains in
possession of the Property after the expiration or earlier termination of this Lease, one hundred

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fifty percent (150%) of the Basic Annual Rent in effect during the last thirty (30) days of the
Term.

     14.3. Acceptance by Landlord of Rent after the expiration or earlier termination of the Term
shall not result in an extension, renewal or reinstatement of this Lease.

     14.4. The foregoing provisions of this Article 14 are in addition to and do not affect
Landlord’s right of reentry or any other rights of Landlord hereunder or as otherwise provided by
Applicable Laws.

15. Property Management Fee. Tenant shall pay to Landlord on the first day of each
calendar month of the Term, as Additional Rent, the “Property Management Fee,” which shall
equal one percent (1%) of the Basic Annual Rent due from Tenant.

16. Condition of Premises and the Property. Except as otherwise provided herein,
Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or
warranty with respect to the condition of the Premises, the Property or with respect to the
suitability of the Premises for the conduct of Tenant’s business.

17. Regulations and Parking and Recreation Facilities.

     17.1. Tenant shall faithfully observe and comply with the rules and regulations adopted by
Landlord and attached hereto as Exhibit H, together with such other reasonable and
nondiscriminatory rules and regulations as are hereafter promulgated by Landlord in its reasonable
discretion (the “Rules and Regulations”).

     17.2. Subject to Diversified’s rights under Section 12.3, Tenant shall have the right
to use, at no additional cost, the parking facilities serving the Premises. As part of Landlord’s
Construction Work, the Property shall contain sufficient parking to comply with applicable zoning
requirements.

     17.3. Tenant shall, at Tenant’s sole cost and expense, comply with the terms and conditions
set forth in, and perform each of the obligations of the Parcel 3 Owner (as defined in the REA)
described in, Sections 3, 4.1, 4.2, 4.3, 4.4, 4.8,
7, 8, 9, 11.3, 11.10, 11.11 and 11.12 of
the Reciprocal Easement Agreement attached hereto as Exhibit L (the “REA”), in accordance
with the terms of conditions of the REA as if Tenant were the Parcel 3 Owner.

     17.4. Subject to Section 18.5 and provided there is no material adverse impact on
Tenant’s Permitted Use and access to the Premises (including the parking facilities), Landlord
reserves the right to subdivide the real property; provided, however, that such
right shall be exercised in a way that does not materially adversely affect Tenant’s beneficial use
and occupancy of the Premises, including Tenant’s Permitted Use and Tenant’s access to the Premises
(including the parking facilities).

     17.5. Tenant shall, and shall cause Tenant’s Agents to, faithfully observe and comply with any
rules and regulations adopted pursuant to Section 4.7 of the REA (the “Recreation
Facilities Rules and Regulations”). Landlord has the right to refuse to allow Tenant’s Agents
to access the Recreation Facilities if such Tenant’s Agent has not complied with the applicable
Recreation Facilities Rules and Regulations after receiving written notice of such failure to
comply.

     17.6. Tenant shall have the right to use the Recreation Facilities during the hours reasonably
established by Landlord as the operating hours of the Recreation Facilities. Notwithstanding
anything to the contrary in this Lease, Landlord shall have no responsibility to Tenant or Tenant’s
Agents (as defined below), for any accidents, claims, demands, liabilities, causes of action,
judgments, costs, liens, damages, injuries, suits, losses or expenses, including
attorneys’ fees, of any nature, kind or description, arising out of, caused by, or resulting
from Tenant or Tenant’s Agent’s use of the Recreational Facilities or the negligence of Landlord
Parties (as defined in Section 22.3) or Tenant’s Agents in connection with the operation
and maintenance of such Recreational Facilities.

     17.7. So long as this Lease is in full force and effect, Landlord shall not amend or modify
the REA without first obtaining: (a) the prior written consent of the original Tenant hereunder
(but not any assignee or subtenant), which consent shall not be unreasonably withheld,

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conditioned
or delayed, and (b) solely with respect to amendments or modifications that could reasonably be
expected to have a material adverse effect on obligations assumed by any successors and assigns of
Tenant under the REA, the prior written consent of any such successors and assigns, which consent
shall not be unreasonably withheld, conditioned or delayed. All amendments or modifications which
result in an increase of the costs and expenses to be incurred by Tenant under Section 17.3
shall be deemed material and adverse.

18. Utilities and Services.

     18.1. Tenant shall, at Tenant’s sole cost and expense, procure and maintain contracts, with
copies furnished promptly to Landlord after execution thereof, in customary form and substance for,
and with contractors specializing and experienced in, the maintenance of the following equipment
and improvements, if any, if and when installed on the Property: (a) HVAC equipment, (b) boilers
and pressure vessels, (c) fire extinguishing systems, including fire alarm and smoke detection
devices, (d) landscaping and irrigation systems, (e) roof coverings and drains, (f) clarifiers, (g)
basic utility feeds to the perimeter of the Buildings, and (h) any other equipment reasonably
required by Landlord. Notwithstanding the foregoing, in the event Tenant fails to maintain the
contracts required under this Section 18.1 within one (1) business day after Landlord
provides Tenant written notice of such failure, Landlord reserves the right, upon notice to Tenant,
to procure and maintain any or all of such contracts, and if Landlord so elects, Tenant shall
reimburse Landlord, upon demand, for the actual documented costs thereof.

     18.2. Within sixty (60) days after the Commencement Date, and within sixty (60) days after the
beginning of each calendar year during the Term, Landlord shall give Tenant a written estimate for
such calendar year of the cost of utilities for the Property (including the Diversified Space), if
not separately metered (“Utility Costs”), and insurance provided by Landlord for the
Property (including the Diversified Space) (“Insurance Costs”). Tenant shall pay such
estimated amount to Landlord in advance in equal monthly installments. Within ninety (90) days
after the end of each calendar year, Landlord shall furnish to Tenant a statement showing in
reasonable detail the costs incurred by Landlord for Utility Costs and Insurance Costs for the
Property (including the Diversified Space) during such year (the “Annual Statement”), and
Tenant shall pay to Landlord the costs incurred in excess of the payments previously made by Tenant
within thirty (30) days of receipt of the Annual Statement. In the event that the payments
previously made by Tenant for Utility Costs and Insurance Costs for the Property (including the
Diversified Space) exceed Tenant’s obligation, such excess amount shall be credited by Landlord to
the Rent or other charges next due and owing, provided that, if the Term has expired,
Landlord shall remit such excess amount to Tenant. In the event Tenant disputes the amounts of any
Annual Statement for the particular calendar year delivered by Landlord to Tenant and Tenant is not
in Default hereunder, Tenant shall have the right, at Tenant’s cost, after reasonable notice to
Landlord, to have Tenant’s authorized employees inspect, at Landlord’s office in San Diego County
during normal business hours, Landlord’s books, records and supporting documents concerning the
expenses set forth in such Annual Statement; provided, however, Tenant shall have
no right to conduct such inspection, have an audit performed by the Accountant as described below,
or object to or otherwise dispute the amount of the expenses set forth in any such Annual Statement
unless Tenant notifies Landlord of such objection and dispute, completes such inspection, and has
the Accountant commence and complete such audit within one hundred and eighty (180) days
immediately following Landlord’s delivery of the particular Annual Statement in question (the
“Review Period”); provided, further, that notwithstanding any such timely objection,
dispute, inspection, and/or audit, and as a condition precedent to Tenant’s exercise of its right
of objection, dispute, inspection and/or audit as set forth in this Section 18.2, Tenant
shall not be permitted to withhold payment of, and Tenant shall timely pay to Landlord, the full
amounts as required by the provisions of this Lease in accordance with such Annual Statement.
However, such payment may be made under protest pending the outcome of any audit which may be
performed by the Accountant as described below. In connection with any such inspection by Tenant,
Landlord and Tenant shall reasonably cooperate with each other so
that such inspection can be performed pursuant to a mutually acceptable schedule. If after
such inspection and/or request for documentation, Tenant still disputes the amount of the expenses
set forth in the Annual Statement, Tenant shall have the right, within the Review Period, to cause
an independent certified public accountant selected by Tenant and compensated on a non-contingency
fee basis (the “Accountant”) to complete an audit of Landlord’s books and records to
determine the proper amount of the expenses incurred and amounts payable by Tenant for the calendar
year which is the subject of such Annual Statement. Such audit by the Accountant shall be final
and binding upon Landlord and Tenant. If such audit reveals that Landlord has

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over-charged Tenant,
then within thirty (30) days after the results of such audit are made available to Landlord,
Landlord shall reimburse to Tenant the amount of such over-charge. If the audit reveals that the
Tenant was under-charged, then within thirty (30) days after the results of such audit are made
available to Tenant, Tenant shall reimburse to Landlord the amount of such under-charge. Tenant
agrees to pay the cost of such audit unless it is subsequently determined that Landlord’s original
Annual Statement which was the subject of such audit overstated expenses by five percent (5%) or
more of the actual expenses which were the subject of such audit. The payment by Tenant of any
amounts pursuant to this Section 18.2 shall not preclude Tenant from questioning, during
the Review Period, the correctness of the particular Annual Statement in question provided by
Landlord, but the failure of Tenant to object thereto, conduct and complete its inspection and have
the Accountant conduct the audit as described above prior to the expiration of the Review Period
for such Annual Statement shall be conclusively deemed Tenant’s approval of the Annual Statement in
question and the amount of expenses shown thereon. If following Tenant’s delivery to Landlord of a
written request to make Landlord’s books and records regarding the expenses reasonably available to
Tenant and/or the Accountant to conduct any such inspection and/or audit described above in this
Section 18.2, Landlord fails to make Landlord’s books reasonably available for such
purposes during Landlord’s normal business hours, and such failure continues for five (5) business
days after Tenant notifies Landlord thereof, then the Review Period shall be extended one (1) day
for each such additional day that Tenant and/or the Accountant, as the case may be, is so prevented
from accessing such books and records. In connection with any inspection and/or audit conducted by
Tenant pursuant to this Section 18.2, Tenant agrees to keep, and to cause all of Tenant’s
employees and consultants and the Accountant to keep, all of Landlord’s books and records and the
audit, and all information pertaining thereto and the results thereof, strictly confidential
(except if required by any court to disclose such information or if such information is available
from an inspection of public records).

     18.3. Tenant shall make all arrangements for and pay for all water, sewer, gas, heat, light,
power, telephone service and any other service or utility Tenant required at the Property
(including the Diversified Space). Landlord shall not be liable for, nor shall any eviction of
Tenant result from, the failure to furnish any utility or service, whether or not such failure is
caused by Force Majeure or Landlord’s inability, despite the exercise of reasonable diligence, to
furnish any such utility or service. Except as provided in Section 18.5, in the event of
such failure, Tenant shall not be entitled to termination of this Lease, any abatement or reduction
of Rent, or relief from the operation of any covenant or agreement of this Lease. Tenant shall pay
for, prior to delinquency of payment therefor, any utilities and services that may be furnished to
the Property (including the Diversified Space) during or, if Tenant occupies any portion of the
Premises after the expiration or earlier termination of the Term, after the Term.

     18.4. From and after the Commencement Date, Tenant shall be responsible for paying all amounts
with respect to Insurance Costs, Utility Costs, Taxes and other amounts for which Tenant is
responsible under this Lease (other than Expansion Premises Basic Annual Rent) for the Expansion
Premises as if it was part of the Expansion Premises on the Commencement Date.

     18.5. Notwithstanding the foregoing and subject to Sections 17 and 35, if
because of (i) any repair, maintenance, alteration, development or construction performed by
Landlord after the Commencement Date, which substantially interferes with Tenant’s use of the
Premises and which was not caused by Tenant, (ii) any material interference by Landlord with
Tenant’s access to the Premises (including the parking facilities) that is not caused by Tenant, or
(iii) the presence of Hazardous Materials in, on or around the Premises in connection with the
Landlord’s Construction Work or the Tenant Improvements which (a) is not caused by Tenant, and (b)
poses a health risk to occupants of the Premises (each, an “Adverse Condition”), Tenant is
unable to conduct its business in a reasonable manner in a material portion of the Premises as a
direct result of the Adverse Condition and Tenant therefore actually does not occupy or use such
portion of the Premises, as the case may be, and such condition
persists for more than the “Interruption Period” (as defined below), then following the
Interruption Period, Tenant shall be entitled to an abatement of Rent for the portion of the
Premises rendered untenantable. However, in the event that the remaining portion of the Premises
is not sufficient to allow Tenant to conduct its business therein, and if Tenant does not conduct
its business from such remaining portion, then for such time after expiration of the Interruption
Period during which Tenant is so prevented from effectively conducting its business therein, the
Rent for the entire Premises shall be abated; provided, however, if Tenant
continues to occupy any portion of the Premises, or reoccupies and conducts its business from any
portion of the Premises, during such period, the

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Rent allocable to such reoccupied portion, based
on the proportion that the rentable area of such reoccupied portion of the Premises bears to the
total rentable area of the Premises, shall be payable by Tenant from the date such business
operations commence. Such abatement shall commence as of the first day after the expiration of the
“Interruption Period” and terminate upon the cessation of such Adverse Condition. As used herein,
the term “Interruption Period” shall mean seven (7) consecutive business days after written
notice thereof to Landlord, or such shorter period as applicable under the coverage which is or
would be covered by rental abatement insurance required to be carried by Landlord.

19. Alterations.

     19.1. Tenant shall make no alterations, additions or improvements in or to the Property or
engage in any construction, demolition, reconstruction, renovation, or other work of any kind in,
at, or serving the Premises (“Alterations”) without Landlord’s prior written approval,
which approval Landlord may withhold in its sole and absolute discretion; provided,
however, that Landlord’s approval shall not be unreasonably withheld, conditioned or
delayed in connection with any Alteration that does none of the following (i) adversely affects the
exterior appearance of a Building or the Premises, (ii) adversely affects the structural aspects of
a Building, including, without limitation, the roof, foundation, load bearing walls and structural
elements of a Building or the Premises, (iii) adversely affects any base-building system or
equipment, including, without limitation, the base building HVAC, mechanical, electrical, plumbing
or life safety systems; (iv) creates a foreseeable risk of violating any Applicable Law or
increasing insurance premiums; (v) violates any recorded document affecting the Property; (vi)
causes a Building to be inconsistent with the quality and scope of a class “A” office buildings in
the vicinity of the Buildings; (vii) involves a use of the Premises that is inconsistent with the
current use of the Premises; nor (viii) in Landlord’s reasonable judgment, reduces the quality or
value of a Building or the Property (each, a “Design Problem”). In seeking Landlord’s
approval, Tenant shall provide Landlord, at least ten (10) business days in advance of any proposed
construction, with plans, specifications, bid proposals, work contracts, requests for laydown areas
and such other information concerning the nature and cost of the Alterations as Landlord may
reasonably request.

     19.2. Notwithstanding the provisions of Section 19.1, Tenant may make non-structural
Alterations to the Premises (“Acceptable Changes”) upon at least ten (10) business days
prior written notice to Landlord but without Landlord’s prior consent provided (a) the Acceptable
Changes do not involve Design Problems; and (b) the cost of such Acceptable Changes do not exceed
Fifty Thousand Dollars ($50,000) per occurrence or an aggregate amount of One Hundred Thousand
Dollars ($100,000) in any twelve (12) month period.

     19.3. All Alterations made by Tenant shall be: (a) performed in a good and workmanlike manner
and in conformance with any and all Applicable Laws and CC&Rs; and (b) shall be made only by a
licensed, bonded contractor and such architects, suppliers and mechanics approved in advance by
Landlord (which shall not be unreasonably withheld, conditioned or delayed); provided,
however, that such contractor need not be bonded or approved and such architects, suppliers
and mechanics need not be approved by Landlord in connection with Acceptable Changes.

     19.4. Tenant shall not construct or permit to be constructed partitions or other obstructions
that will interfere with free access to mechanical installation or service facilities of the
Buildings, or interfere with the moving of Landlord’s equipment to or from the enclosures
containing such installations or facilities.

     19.5. Tenant shall accomplish any work performed on the Property in such a manner as to permit
any fire sprinkler system and fire water supply lines to remain fully operable at all times.

     19.6. Tenant covenants and agrees that all work done by Tenant or Tenant’s contractors shall
be performed in full compliance with Applicable Laws. Within thirty (30) days after completion of
any Alterations, Tenant shall provide Landlord with complete “as-built” drawing print sets and
electronic CADD files on disc (or files in such other current format in common use as Landlord
reasonably approves or requires) showing any changes in the Property (but only if drawings and
plans were required by this Lease or were prepared in connection with any such Alterations).

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     19.7. Before commencing any work, Tenant shall give Landlord at least ten (10) business days’
prior written notice of the proposed commencement of such work.

     19.8. Except for those items listed on Exhibit G, all Alterations, attached equipment,
decorations, fixtures, trade fixtures, additions and improvements, subject to Section 19.8,
attached to or built into the Property, made by either of the Parties, including, without
limitation, all floor and wall coverings, built-in cabinet work and paneling, sinks and related
plumbing fixtures, laboratory benches, exterior venting fume hoods and walk-in freezers and
refrigerators, ductwork, conduits, electrical panels and circuits shall (unless, prior to such
construction or installation, Landlord elects otherwise) become the property of Landlord upon the
expiration or earlier termination of the Term, and shall remain upon and be surrendered with the
Property as a part thereof. The Property shall at all times remain the property of Landlord and
shall be surrendered to Landlord upon the expiration or earlier termination of this Lease. Except
for those items on Exhibit G, all trade fixtures, Tenant Improvements, Alterations and Signage
installed by or under Tenant shall be the property of Landlord. Notwithstanding the foregoing, at
any time during the Term, subject to Landlord’s prior written approval, which approval shall not be
unreasonably withheld, conditioned or delayed, Tenant shall have the right to update Exhibit G.

     19.9. Tenant shall repair any damage to the Property caused by Tenant’s removal of any
property from the Property. During any such restoration period, Tenant shall pay Rent to Landlord
as provided herein as if the affected portion of the Premises were otherwise occupied by Tenant.
The provisions of this Section shall survive the expiration or earlier termination of this Lease.

     19.10. Except as to those items listed on Exhibit G attached hereto, all business and trade
fixtures, machinery and equipment, built-in furniture and cabinets, together with all additions and
accessories thereto, attached to or built into the Property shall be and remain the property of
Landlord and shall not be moved by Tenant at any time during the Term. If Tenant shall fail to
remove any of its effects from the Property within ten (10) days after the termination of this
Lease, then Landlord may, at its option, remove the same in any manner that Landlord shall choose
and store said effects without liability to Tenant for loss thereof or damage thereto, and Tenant
shall pay Landlord, upon demand, any actual, documented and reasonable costs and expenses incurred
due to such removal and storage or Landlord may, at its sole option and upon notice to Tenant, sell
such property or any portion thereof at private sale and without legal process for such price as
Landlord may obtain and apply the proceeds of such sale against any (a) amounts due by Tenant to
Landlord under this Lease and (b) any actual and documented expenses incident to the removal,
storage and sale of said personal property.

     19.11. Notwithstanding any other provision of this Article 19 to the contrary, in no
event shall Tenant remove any improvement from the Property as to which Landlord contributed
payment, including, without limitation, the Tenant Improvements made pursuant to the Work Letter
without Landlord’s prior written consent, which consent Landlord may withhold in its sole and
absolute discretion.

     19.12. Tenant shall pay to Landlord the Construction Management Fee on the Tenant
Improvements. In addition, Tenant shall pay to Landlord an amount equal to one and one-half
percent (1.5%) of the cost to Tenant of all Alterations (other than Tenant Improvements) installed
by Tenant or its contractors or agents to cover Landlord’s overhead and expenses for plan review,
coordination, scheduling and supervision thereof but only for those Alterations requiring
Landlord’s consent. For purposes of payment of such sum, Tenant shall submit to Landlord copies of
all bills, invoices and statements covering the costs of such charges, accompanied by payment to
Landlord of the fee set forth in this Section. Tenant shall reimburse Landlord for any extra
expenses incurred by Landlord by reason of faulty work done by Tenant or its contractors.

     19.13. Upon Landlord’s written request, within sixty (60) days after final completion of any
Alterations performed by Tenant with respect to the Property, Tenant shall submit to Landlord
documentation showing the amounts expended by Tenant with respect to such Alterations, together
with supporting documentation reasonably acceptable to Landlord.

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     19.14. Tenant shall require its contractors and subcontractors performing work on the Property
to name Landlord and its affiliates and lenders as additional insureds on their respective
insurance policies.

20. Repairs and Maintenance.

     20.1. Subject to Landlord’s obligations hereunder, Tenant, at its sole cost and expense, shall
maintain and keep the Property (other than the Diversified Space), all improvements thereon, and
all appurtenances thereto, including but not limited to sidewalks, parking areas, curbs, roads,
driveways, lighting standards, landscaping, sewers, water, gas and electrical distribution systems
and facilities, drainage facilities, and all signs, both illuminated and non-illuminated that are
now or hereafter on the Property, in good condition and in a manner consistent with the Permitted
Use. Tenant shall make all repairs, replacements and improvements, including, without limitation,
all HVAC, plumbing and electrical repairs, replacements and improvements required, and shall keep
the same free and clear from all rubbish and debris, excluding, however, the foundation, slab,
structural portions of the walls and roof (not including the membrane), and structural steel
aspects of the Buildings. All repairs made by Tenant shall be at least equal in quality to the
original work, and shall be made only by a licensed, bonded contractor approved in advance by
Landlord (which shall not be unreasonably withheld, conditioned or delayed); provided,
however, that such contractor need not be bonded or approved by Landlord if the
non-structural alterations, repairs, additions or improvements to be performed do not exceed Fifty
Thousand Dollars ($50,000) per occurrence or an aggregate amount of One Hundred Thousand Dollars
($100,000) in any twelve (12) month period. Tenant shall not take or omit to take any action, the
taking or omission of which shall cause waste, damage or injury to the Property. Tenant shall
indemnify, defend (by legal counsel acceptable to Landlord) and hold harmless Landlord from and
against any and all Claims (as defined below) arising out of the failure of Tenant or Tenant’s
Agents to perform the covenants contained in this Section. “Tenant’s Agents” shall be
defined to include Tenant’s officers, employees, agents, contractors, invitees, customers and
subcontractors. For the avoidance of doubt, as used in this Article 20 and in Section
11.1, the Diversified Space shall exclude all building systems within the Diversified Space and
any demising, exterior or load bearing walls (other than the interior surface of such walls within
the Diversified Space).

     20.2. Tenant shall maintain the lines designating the parking spaces in good condition and
paint the same as often as may be necessary, so that they are easily discernable at all times;
resurface the parking areas as necessary to maintain them in good condition; paint any exterior
portions of the Buildings as necessary to maintain them in good condition; maintain the roof and
landscaping in good condition; maintain sightly screens, barricades or enclosures around any waste
or storage areas; and take all reasonable precautions to insure that the drainage facilities of the
roof are not clogged and are in good and operable condition at all times

     20.3. There shall be no abatement of Rent and no liability of Landlord by reason of any injury
to or interference with Tenant’s business arising from the Tenant’s making of any repairs,
alterations or improvements in or to any portion of the Property, or in or to improvements,
fixtures, equipment and personal property therein (unless the necessity for any of the same is due
to Landlord’s gross negligence or willful misconduct).

     20.4. During the Term, Landlord shall, at Landlord’s sole cost and expense, be responsible for
any and all repairs and replacements to the foundation, slab, structural portions of the walls and
roof (not including the membrane), and structural steel aspects of the Buildings only.
Notwithstanding the foregoing, Tenant shall be responsible for, and shall pay, all costs and
expenses of such repair and replacement if such repair or replacement results from anything done by
Tenant or Tenant’s Agents or any breach by Tenant under this Lease. For purposes of clarity,
except as provided in the preceding sentence, Landlord shall not be responsible for any repairs or
replacements to the roof, the exterior walls or any other portions of the Property. Except for the
foregoing and except as otherwise provided in this Lease, Landlord shall not be required to
maintain or make any repairs or replacements of any nature or description whatsoever to the
Property unless the necessity for such repairs or replacements is due to Landlord’s gross
negligence or willful misconduct. Except as otherwise provided in this Lease, Tenant hereby
expressly waives the right to make repairs at the expense of Landlord as provided for in any
Applicable Laws in effect at the time of execution of this Lease, or in any other Applicable Laws
that may hereafter be enacted, and waives its rights under Applicable Laws relating to a landlord’s
duty to maintain its premises in a tenantable condition. Notwithstanding the

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foregoing, if Tenant
shall fail, where such failure shall continue for a period of ten (10) days after written notice
thereof from Landlord to Tenant, to maintain or to commence and thereafter to proceed with
diligence to make any repair required of it pursuant to the terms of this Lease, Landlord, without
being under any obligation to do so and without thereby waiving such default by Tenant, may so
maintain or make such repair and may charge Tenant for the actual and documented costs thereof.
Any expense reasonably incurred by Landlord in connection with the making of such repairs may be
billed by Landlord to Tenant monthly or, at Landlord’s option, immediately, and shall be due and
payable within thirty (30) days after such billing.

     20.5. Landlord and Landlord’s agents shall have the right to enter upon the Property or any
portion thereof in accordance with the terms and conditions of Section 34.2, for the
purposes of performing any repairs or maintenance Landlord is permitted or required to make
pursuant to this Lease, and of ascertaining the condition of the Property or whether Tenant is
observing and performing Tenant’s obligations hereunder, all without unreasonable interference from
Tenant or Tenant’s Agents.

     20.6. Tenant shall, upon the expiration or sooner termination of the Term, surrender the
Property (other than the Diversified Space) to Landlord in as good of a condition as when received,
ordinary wear and tear and damage by casualty excepted. Landlord shall have no obligation to
alter, remodel, improve, repair, decorate or paint the Property (other than the Diversified Space)
or any part thereof, other than pursuant to the terms and provisions of this Lease.

     20.7. Tenant shall, at its sole cost and expense, perform the maintenance and repair
obligations of the Parcel 3 Owner (as defined in the REA) pursuant to, and in accordance with,
Section 4.1 of the REA.

     20.8. Landlord shall not be liable for any failure to make any repairs or to perform any
maintenance that is an obligation of Landlord unless such failure shall persist for an unreasonable
time after Tenant provides Landlord with written notice of the need of such repairs or maintenance.
Notwithstanding any provision in this Lease to the contrary, if Tenant provides notice to Landlord
of an event or circumstance which requires the action of Landlord with respect to the provision of
repairs as set forth in Section 20.4 of this Lease, and Landlord fails to provide such
action as required by the terms of this Lease within thirty (30) days after the date of such notice
from Tenant (or if such repair is reasonably expected to require longer than thirty (30) days to
complete, if Landlord shall fail to commence in a meaningful way such repair within said thirty
(30) day period and diligently prosecutes such repair to completion), then Tenant may provide
Landlord with a second written notice stating in bold and all caps 12 point font that “Landlord’s
failure to commence repair of the damage described below within ten (10) business days after
Landlord’s receipt of this second notice shall entitle Tenant to repair such damage.” If Landlord
does not commence in a meaningful way such repair within such ten (10) business day period, then
Tenant shall have the right to take such action, and if such action was required under the terms of
this Lease to be taken by Landlord, then Tenant shall be entitled to reimbursement by Landlord of
Tenant’s reasonable actual and documented costs and expenses in taking such action.
Notwithstanding the foregoing, in case of an emergency (where there is an imminent threat of injury
to persons or damage to property), Tenant shall only be required to provide Landlord five (5)
business days notice of the need to make such repairs stating in bold and all caps 12 point font
that “EMERGENCY: Landlord’s failure to commence its repairs of such damage within five (5) business
days after Landlord’s receipt of this notice shall entitle Tenant to repair such damage,” and if
Landlord does not commence in a meaningful way such repair within such five (5) business day
period, then Tenant shall have the right to take such action. In the event Tenant takes such
action, and such work will affect the building systems and equipment, structural integrity of the
Buildings or exterior appearance of the Buildings, Tenant shall use only those contractors used by
Landlord in connection with the Landlord’s Construction Work for such work unless such contractors
are unwilling or unable to perform such work or their pricing is unreasonable, in which event
Tenant may utilize the services of any other qualified contractor which normally and regularly
performs similar work in comparable first-class, institutional quality, office buildings in the San
Diego, California area whose pricing is
reasonable. If Tenant is entitled to reimbursement by Landlord of Tenant’s reasonable actual
and documented costs and expenses in taking any action pursuant to this Section 20.8,
Tenant shall so notify Landlord in writing (the “Reimbursement Notice”), which
Reimbursement Notice shall specify in detail such costs and expenses. Within thirty (30) days
after Landlord’s receipt of a Reimbursement Notice, Landlord shall pay to Tenant any undisputed
portion of such costs and

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expenses and shall notify Tenant in writing of those costs and expenses
specified by Tenant in the Reimbursement Notice which Landlord disputes (the “Disputed
Amounts”) and the reasons for such dispute. Any amounts which are not so identified by
Landlord as Disputed Amounts within said thirty (30) day period shall be considered to be
undisputed. To the extent Landlord fails to reimburse Tenant for the actual and documented costs
and expenses specified in the Reimbursement Notice within thirty (30) days after demand therefor,
Tenant shall be entitled to offset the sum of the amount of any undisputed portion of such costs
and expenses against Basic Annual Rent payable by Tenant under this Lease together with interest at
the interest rate of eight percent (8%) per annum from the date of expiration of said thirty (30)
day period until the earlier of (a) the date that Landlord reimburses Tenant such amount and (b)
the date of offset (up to a maximum offset each month of fifteen percent (15%) of the Basic Annual
Rent payable for the Premises) until the full pre-judgment offset amount (plus such interest) has
been so offset. If Tenant obtains a final judgment against Landlord for the Disputed Amount and if
Landlord fails to pay such judgment within thirty (30) days after the date such judgment is
rendered, Tenant shall be entitled to offset such judgment against Basic Annual Rent payable by
Tenant under this Lease together with interest at the interest rate of eight percent (8%) per annum
from the date Landlord failed to timely reimburse Tenant for such costs and expenses until the
earlier of (x) the date that Landlord has reimburses Tenant such amount and (y) the date of offset
(up to a maximum offset each month of fifteen percent (15%) of the Basic Annual Rent payable for
the Premises) until the full amount of such judgment (plus such interest) has been so offset. If
Landlord obtains a final judgment against Tenant for the Disputed Amount, Tenant shall pay to
Landlord such judgment within thirty (30) days after the date such judgment is rendered.

     20.9. This Article 20 relates to repairs and maintenance arising in the ordinary
course of operation of the Property (other than the Diversified Space) and any related facilities.
In the event of fire, earthquake, flood, vandalism, war, terrorism, natural disaster or similar
cause of damage or destruction, Article 24 shall apply in lieu of this Article 20.

     20.10. Notwithstanding anything above to the contrary, if during the Term, any portion of the
Property which is Tenant’s responsibility hereunder to repair cannot be repaired other than at a
cost which is in excess of fifty percent (50%) of the cost of replacing such item(s), then such
item(s) shall be replaced by Tenant (subject to Landlord’s prior approval of the plans and
specifications and the cost of any such replacement), and Landlord shall reimburse Tenant a prorata
share of the cost thereof based upon a fraction, the numerator of which is the number of months of
the useful life of such replacement item beyond the expiration of the Term (including any Extended
Term, if applicable), and the denominator of which is the total number of months of the useful life
of such replacement (as such useful life is specified pursuant to Federal income tax regulations or
guidelines for depreciation thereof); provided, however, for purposes of
calculating the useful life of such replacement, the useful life of such replacement shall not
exceed seven (7) years from the date that such replacement is made.

21. Liens.

     21.1. Subject to the immediately succeeding sentence, Tenant shall keep the Property free from
any liens arising out of work performed, materials furnished or obligations incurred by Tenant.
Tenant further covenants and agrees that any mechanic’s lien filed against the Property for work
claimed to have been done for, or materials claimed to have been furnished to, shall be discharged
or bonded by Tenant within ten (10) days after the filing thereof, at Tenant’s sole cost and
expense.

     21.2. Should Tenant fail to discharge or bond against any lien of the nature described in
Section 21.1, Landlord may, at Landlord’s election, pay such claim or post a bond or
otherwise provide security to eliminate the lien as a claim against title, and Tenant shall
immediately reimburse Landlord for the actual, documented and reasonable costs thereof as
Additional Rent.

     21.3. In the event that Tenant leases or finances the acquisition of office equipment,
furnishings or other personal property of a removable nature utilized by Tenant in the operation of
Tenant’s business (which Tenant shall have the right to do), Tenant warrants that any Uniform
Commercial Code financing statement executed by Tenant shall, upon its face or by Exhibit
thereto, indicate that such financing statement is applicable only to removable personal property
of Tenant located within the Premises. In no event shall the address of the Property be furnished
on a financing statement without qualifying language as to applicability of the lien only to
removable personal property located in an identified suite leased by Tenant. Should any

24

 

holder of
a financing statement executed by Tenant record or place of record a financing statement that
appears to constitute a lien against any interest of Landlord, Tenant shall, within ten (10) days
after filing such financing statement, cause (a) a copy of the lender security agreement or other
documents to which the financing statement pertains to be furnished to Landlord to facilitate
Landlord’s ability to demonstrate that the lien of such financing statement is not applicable to
Landlord’s interest and (b) Tenant’s lender to amend such financing statement and any other
documents of record to clarify that any liens imposed thereby are not applicable to any interest of
Landlord in the Property.

22. Indemnification and Exculpation.

     22.1. Subject to Section 22.6 below, Tenant agrees to indemnify, defend and save
Landlord harmless from and against any and all demands, claims, liabilities, losses, costs,
expenses, actions, causes of action, damages or judgments, and all reasonable expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred in
investigating or resisting the same (collectively, “Claims”) arising from injury to or
death of any person or damage to any property occurring within or about the Property arising
directly or indirectly out of Tenant’s or Tenant’s employees’, agents’ or guests’ use or occupancy
of the Property or a breach or default by Tenant in the performance of any of its obligations
hereunder, unless caused solely by Landlord’s willful misconduct or gross negligence.

     22.2. Landlord agrees to indemnify, defend and save Tenant harmless from and against any and
all Claims arising from injury to or death of any person or damage to any property occurring within
or about the Diversified Space that arise directly out of Landlord’s obligations under the
Diversified Lease after the Effective Date, unless (a) caused by Tenant’s acts or omissions, or (b)
arising from Tenant’s performance, or Tenant’s failure to perform, any of Tenant’s obligations
under this Lease.

     22.3. Notwithstanding any provision of Section 22.1 to the contrary, but subject to
Section 22.5 below, Landlord shall not be liable to Tenant for, and Tenant assumes all risk
of, damage to personal property or scientific research, including, without limitation, loss of
records kept by Tenant within the Property and damage or losses caused by fire, electrical
malfunction, gas explosion or water damage of any type (including, without limitation, broken water
lines, malfunctioning fire sprinkler systems, roof leaks or stoppages of lines), unless any such
loss is due to Landlord’s gross negligence, willful misconduct and/or willful disregard of written
notice by Tenant of need for a repair that Landlord is responsible to make for an unreasonable
period of time. Tenant further waives any claim for injury to Tenant’s business or loss of income
relating to any such damage or destruction of personal property as described in this Section
22.2.

     22.4. Landlord shall not be liable for any damages arising from any act, omission or neglect
of any third party other than the gross negligence or willful misconduct of any of Landlord’s
officers, employees, agents, general partners, members, and Lenders (“Landlord Parties”).

     22.5. Tenant acknowledges that security devices and services, if any, while intended to deter
crime, may not in given instances prevent theft or other criminal acts. Landlord shall not be
liable for injuries or losses caused by criminal acts of third parties, and Tenant assumes the risk
that any security device or service may malfunction or otherwise be circumvented by a criminal. If
Tenant desires protection against such criminal acts, then Tenant shall, at Tenant’s sole cost and
expense, obtain appropriate insurance coverage. Notwithstanding any contrary provision of this
Lease, neither Landlord nor Tenant shall be liable to the other party for any consequential
damages, loss of business or profit for a breach or default under this Lease; provided that this
sentence shall not limit Landlord’s damages if, as a result of Tenant’s breach of this Lease: (a)
Landlord does not or is unable to lease the Premises to another party, or (b) a third party is
unable to occupy the Premises on the date specified in such third party’s lease.

     22.6. Tenant shall not be required to indemnify and hold Landlord harmless from any Claim to
any person, property or entity resulting from the grossly negligent acts or omissions or
willful misconduct of the Landlord Parties in connection with the Landlord Parties’ activities
in, on or about the Property, and Landlord hereby agrees to so indemnify and holds Tenant harmless
from any such Claims.

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     22.7. The provisions of this Article 22 shall survive the expiration or earlier
termination of this Lease.

23. Insurance; Waiver of Subrogation.

     23.1. Landlord shall maintain insurance for the Property (including the Diversified Space) in
amounts equal to full replacement cost (exclusive of the costs of excavation, foundations and
footings, and without reference to depreciation taken by Landlord upon its books or tax returns) or
such lesser coverage as Landlord may elect, provided that such coverage shall not be less
than ninety percent (90%) of such full replacement cost or the amount of such insurance Landlord’s
lender, mortgagee or beneficiary (each, a “Lender”), if any, requires Landlord to maintain,
providing protection against any peril generally included within the classification “Fire and
Extended Coverage,” together with insurance against sprinkler damage (if applicable), vandalism and
malicious mischief. Landlord, subject to availability thereof, shall further insure, if Landlord
deems it appropriate, coverage against flood, environmental hazard, earthquake, loss or failure of
building equipment, rental loss during the period of repairs or rebuilding, workmen’s compensation
insurance and fidelity bonds for employees employed to perform services. Notwithstanding the
foregoing, Landlord may, but shall not be deemed required to, provide insurance for any
improvements installed by Tenant or that are in addition to the standard improvements customarily
furnished by Landlord, without regard to whether or not such are made a part of or are affixed to
the Buildings. Any costs incurred by Landlord pursuant to this Section 23.1 shall
constitute a portion of Insurance Costs.

     23.2. In addition, Landlord shall carry public liability insurance with a single limit of not
less than Ten Million Dollars ($10,000,000) for death or bodily injury, or property damage with
respect to the Property (including the Diversified Space). Any costs incurred by Landlord pursuant
to this Section 23.2 shall constitute a portion of Insurance Costs.

     23.3. Tenant shall, at its own cost and expense, procure and maintain in effect, beginning on
the Commencement Date or the date of occupancy, whichever occurs first, and continuing throughout
the Term (and occupancy by Tenant, if any, after termination of this Lease) comprehensive public
liability insurance with limits of not less than Five Million Dollars ($5,000,000) per occurrence
for death or bodily injury and not less than Two Million Dollars ($2,000,000) for property damage
with respect to the Property (including the Diversified Space).

     23.4. Tenant shall, at its sole cost and expense, procure and maintain in effect, beginning on
the Commencement Date or the date of occupancy, whichever occurs first, and continuing throughout
the Term all insurance required to be maintained by the Parcel 3 Owner (as defined in the REA) in
connection with the Parcel 3 Land (as defined in the REA) pursuant to Section 6 of the REA.

     23.5. The insurance required to be purchased and maintained by Tenant pursuant to this Lease
shall show, as an additional insured in respect of the Property, Landlord, BioMed Realty, L.P.,
BioMed Realty Trust, Inc., Tenant, any management company retained by Landlord to manage the
Property, any ground lessor and any mortgagee of Landlord required to be named pursuant to its
mortgage documents. All public liability and property damage policies shall contain a provision
that Landlord, although named as an insured, nevertheless shall be entitled to recovery under said
policies for any loss occasioned to it, its servants, agents and employees by reason of the
negligence of Tenant. Said insurance shall be with companies having a rating of not less than
policyholder rating of A and financial category rating of at least Class XII in “Best’s Insurance
Guide.” Tenant shall obtain for Landlord from the insurance companies or cause the insurance
companies to furnish certificates of coverage to Landlord. No such policy shall be cancelable or
subject to reduction of coverage or other modification or cancellation except after thirty (30)
days’ prior written notice to Landlord from the insurer. All such policies shall be written as
primary policies, not contributing with and not in excess of the coverage that Landlord may carry.
Tenant’s policy may be a “blanket policy” that specifically provides that the amount of insurance
shall not be prejudiced by other losses covered by the policy. Tenant shall, at least twenty (20)
days prior to the expiration of such policies, furnish Landlord with renewals or binders. Tenant
agrees that if Tenant does not take out and maintain such insurance, Landlord
may (but shall not be required to) procure said insurance on Tenant’s behalf and at its cost
to be paid by Tenant as Additional Rent.

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     23.6. Tenant assumes the risk of damage to any fixtures, goods, inventory, merchandise,
equipment and leasehold improvements, and Landlord shall not be liable for injury to Tenant’s
business or any loss of income therefrom, relative to such damage, all as more particularly set
forth within this Lease unless caused by Landlord’s gross negligence or willful misconduct. Tenant
shall, at Tenant’s sole cost and expense, carry such insurance as Tenant desires for Tenant’s
protection with respect to personal property of Tenant or business interruption.

     23.7. In each instance where Tenant’s insurance is to name additional insureds, Tenant shall,
upon Landlord’s written request, also designate and furnish certificates evidencing the same to (a)
any Lender of Landlord holding a security interest in the Property or any portion thereof, (b) the
landlord under any lease whereunder Landlord is a tenant of the real property upon which the
Buildings are located if the interest of Landlord is or shall become that of a tenant under a
ground lease rather than that of a fee owner, and (c) any management company retained by Landlord
to manage the Property.

     23.8. Landlord and Tenant each hereby waive any and all rights of recovery against the other
or against the officers, directors, employees, agents and representatives of the other on account
of loss or damage occasioned by such waiving party or its property or the property of others under
such waiving party’s control, in each case to the extent that such loss or damage is insured
against under any fire and extended coverage insurance policy that either Landlord or Tenant may
have in force at the time of such loss or damage. Such waivers shall continue so long as their
respective insurers so permit. Any termination of such a waiver shall be by written notice to the
other party, containing a description of the circumstances hereinafter set forth in this
Section 23.8. Landlord and Tenant, upon obtaining the policies of insurance required or
permitted under this Lease, shall give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease. If such policies shall not be
obtainable with such waiver or shall be so obtainable only at a premium over that chargeable
without such waiver, then the party seeking such policy shall notify the other of such conditions,
and the party so notified shall have ten (10) days thereafter to either (a) procure such insurance
with companies reasonably satisfactory to the other party or (b) agree to pay such additional
premium. If the parties do not accomplish either (a) or (b), then this Section 23.8 shall
have no effect during such time as such policies shall not be obtainable or the party in whose
favor a waiver of subrogation is desired refuses to pay the additional premium. If such policies
shall at any time be unobtainable, but shall be subsequently obtainable, then neither party shall
be subsequently liable for a failure to obtain such insurance until a reasonable time after
notification thereof by the other party. If the release of either Landlord or Tenant, as set forth
in the first sentence of this Section 23.8, shall contravene Applicable Laws, then the
liability of the party in question shall be deemed not released but shall be secondary to the other
party’s insurer.

24. Damage or Destruction.

     24.1. Subject to Section 24.2, In the event of a partial or complete destruction of
the Premises or a Building by fire or other perils, Landlord shall commence and proceed diligently
with the work of repair, reconstruction and restoration of the Premises and such Building, as
applicable, and this Lease shall continue in full force and effect.

     24.2. Notwithstanding the terms of this Article 24, Landlord may elect not to rebuild
and/or restore the Premises and the Buildings and instead terminate this Lease by notifying Tenant
in writing of such termination within sixty (60) days after the date of damage, such notice to
include a termination date giving Tenant ninety (90) days to vacate the Premises, but Landlord may
so elect only if the Premises or any Building shall be damaged by fire or other casualty or cause
or be subject to a condition existing as a result of such a fire or other casualty or cause, and
one or more of the following conditions is present: (i) in the reasonable judgment of a contractor
selected by Landlord and reasonably approved by Tenant, repairs cannot reasonably be completed
within one hundred eighty (180) days of the date of damage (when such repairs are made without the
payment of overtime or other premiums); (ii) the holder of any mortgage on the Premises or the
Buildings, or ground or underlying lessor with respect to the Premises or the Buildings (a) shall
require that the insurance proceeds or any portion thereof be used to retire the mortgage debt due
to an impairment of such holder’s collateral, and the remaining proceeds are
insufficient to repair the damage and as a result thereof the deficiency of insurance proceeds
exceeds the “Maximum Amount,” as that term is defined below, and Landlord elects not to commence
repair to the Premises or the Buildings within one (1) year of such damage or

27

 

destruction, or (b)
shall terminate the ground or underlying lease, as the case may be; (iii) the dollar amount of the
damage or condition arising as a result of such damage which is not fully covered by Landlord’s
insurance policies (and that would not be fully covered by Landlord’s insurance policies if
Landlord had carried the coverage required under this Lease) including any deductible amount, is
equal to or greater than Two Hundred and Fifty Thousand Dollars ($250,000) (the “Maximum
Amount”), which Maximum Amount shall, as of the date of termination of this Lease, be equal to
the product of (a) the Maximum Amount and (b) a fraction, the numerator of which is the number of
full months remaining in the Term, or when appropriate the Extended Term then applicable, as of the
date of the termination of this Lease, and the denominator of which is 180 (or, if applicable, 60
during an Extended Term) and Landlord elects not to commence repair to the Premises or the
Buildings within one (1) year of such damage or destruction; or (iv) the damage occurs during the
last twenty-four (24) months of the Term, as such Term may have been extended by Tenant pursuant to
this Lease; provided, however, that if Landlord does not elect to terminate this
Lease pursuant to Landlord’s termination right as provided above, and the repairs of such damage
cannot, in the reasonable opinion of a contractor selected by Landlord and reasonably approved by
Tenant, be completed within twelve (12) months after being commenced, Tenant may elect, not later
than ten (10) business days after the date of such damage, to terminate this Lease by written
notice to Landlord effective as of the date specified in the notice. At any time, from time to
time, after the date occurring thirty (30) days after the date of the damage, but in no event more
than once every forty-five (45) days, Tenant may request that Landlord provide Tenant with a
certificate from the architect or contractor described above setting forth such architect’s or
contractors’ reasonable opinion of the date of completion of the repairs and Landlord shall respond
to such request within fifteen (15) business days.

     24.3. Landlord shall give written notice to Tenant of its election not to repair, reconstruct
or restore the Premises or the Buildings within sixty (60) days following the date of damage or
destruction.

     24.4. Upon any termination of this Lease under any of the provisions of this Article
24, the parties shall be released thereby without further obligation to the other from the date
possession of the Premises is surrendered to Landlord, except with regard to (a) items occurring
prior to the damage or destruction and (b) provisions of this Lease that, by their express terms,
survive the expiration or earlier termination hereof.

     24.5. In the event of repair, reconstruction and restoration as provided in this Article
24, all Rent to be paid by Tenant under this Lease shall be abated proportionately based on the
extent to which Tenant’s use of the Premises is impaired during the period of such repair,
reconstruction or restoration, unless Landlord provides Tenant with other space during the period
of repair that, in Tenant’s reasonable discretion, is suitable for the temporary conduct of
Tenant’s business; provided, however, that the amount of such abatement shall be
reduced by the proceeds of lost rental income insurance actually received by Tenant with respect to
the Premises.

     24.6. Notwithstanding anything to the contrary contained in this Article 24, should
Landlord be delayed or prevented from completing the repair, reconstruction or restoration of the
damage or destruction to the Premises or the Buildings after the occurrence of such damage or
destruction by Force Majeure, then the time for Landlord to commence or complete repairs shall be
extended on a day-for-day basis.

     24.7. If Landlord is obligated to or elects to repair, reconstruct or restore as herein
provided, then Landlord shall be obligated to make such repair, reconstruction or restoration only
with regard to those portions of the Premises and the Buildings that were originally provided at
Landlord’s expense. The repair, reconstruction or restoration of improvements not originally
provided by Landlord or at Landlord’s expense shall be the obligation of Tenant. In the event
Tenant has elected to upgrade certain improvements, Landlord shall, upon the need for replacement
due to an insured loss, construct the improvements to the standard that existed prior to such
damage, unless Tenant again elects to upgrade such improvements and pay any incremental costs
related thereto, except to the extent that excess insurance proceeds, if received, are adequate to
provide such upgrades, in addition to providing for basic repair, reconstruction and restoration of
the Premises and the Buildings.

     24.8. In addition to its termination right in Section 24.2 above, Tenant shall have
the right to terminate this Lease if any damage to the Buildings or the Premises: (a) occurs during

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the last twelve (12) months of the Term of this Lease (including the last twelve (12) months of any
Extended Term, if applicable); (b) Tenant is unable to occupy more than twenty-five percent (25%)
of the Premises; and (c) in the reasonable judgment of a contractor selected by Landlord and
reasonably approved by Tenant, such repairs cannot reasonably be completed within twenty-five
percent (25%) of the remaining term of this Lease (including any Extended Term, if applicable).

25. Eminent Domain.

     25.1. Total Taking — Termination. In the event the whole of the Premises, or such
part thereof so that reconstruction of the Premises will not result in the Premises being
reasonably suitable (as reasonably determined by Landlord and Tenant) for Tenant’s continued
occupancy for the uses and purposes permitted by this Lease, shall be taken for any public or
quasi-public purpose by any lawful power or authority by exercise of the right of appropriation,
condemnation or eminent domain, or sold to prevent such taking, Tenant or Landlord may terminate
this Lease effective as of the date possession is required to be surrendered to said authority.

     25.2. Partial Taking. In the event of a partial taking of the Premises, or of drives,
walkways or parking areas serving the Premises for any public or quasi-public purpose by any lawful
power or authority by exercise of right of appropriation, condemnation, or eminent domain, or sold
to prevent such taking, then, without regard to whether any portion of the Premises occupied by
Tenant was so taken, Landlord may elect to terminate this Lease as of such taking if such taking
is, in Landlord’s sole opinion, of a material nature such as to make it uneconomical to continue
use of the unappropriated portion for purposes of renting office or laboratory space.

     25.3. Tenant shall be entitled to any award that is specifically awarded as compensation for
(a) the taking of Tenant’s personal property that was installed at Tenant’s expense and (b) the
costs of Tenant moving to a new location. Except as set forth in this Article 25, any
award for such taking shall be the property of Landlord.

     25.4. If, upon any taking of the nature described in Sections 25.1 and 25.2,
this Lease continues in effect, then (a) Landlord shall promptly proceed to restore the Premises to
substantially their same condition prior to such partial taking and this Lease shall, as to the
part so taken terminate as of the date that possession of such part of the Premises is taken and
the Basic Annual Rent shall be reduced in the same proportion that the floor area of the portion of
the Buildings so taken (less any addition thereto by reason of any reconstruction) bears to the
original floor area of the Buildings, and (b) in the event of a partial taking of the Diversified
Space, (i) Tenant agrees to sublease to Diversified, at no cost to Diversified, up to 6,600
rentable square feet in the Expansion Premises or in the Existing Parcel 1 and Parcel 2 Buildings
in accordance with Diversified’s rights under Article 20 of the Diversified Lease, (ii)
Tenant shall be entitled to (1) an abatement of fifty percent (50%) of the Expansion Premises Basic
Annual Rent for the portion of the Expansion Premises (if any) occupied by Diversified, and (2) an
abatement of fifty percent (50%) of the Basic Annual Rent under the Illumina Lease for the portion
of the Premises (as defined in the Illumina Lease) (if any) occupied by Diversified, (iii) Landlord
shall pay all costs associated with the relocation of Diversified, including, but not limited to,
costs of tenant improvements and moving costs, and (iv) Tenant shall not be entitled to an
abatement of any of the operating expenses, including Taxes, Insurance Costs, Utility Costs and all
other insurance and utility costs and expenses in connection with the portion of the Expansion
Premises or the Premises (as defined in the Illumina Lease) occupied by Diversified

26. Defaults and Remedies.

     26.1. Late payment by Tenant to Landlord of Rent and other sums due shall cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult
and impracticable to ascertain. Such costs include, but are not limited to, processing and
accounting charges and late charges that may be imposed on Landlord by the terms of any mortgage or
trust deed covering the Property. Therefore, if any installment of Rent due from Tenant is not
received by Landlord within five (5) days after written notice that such payment is due, Tenant
shall pay to Landlord an additional sum of three percent (3%) of the overdue Rent as a late charge.
The parties agree that this late charge represents a fair and
reasonable estimate of the costs that Landlord shall incur by reason of late payment by
Tenant. Notwithstanding the foregoing, Landlord shall waive the imposition of such late charge for
the

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first late payment of Rent due hereunder in any calendar year of the Term. In addition to the
late charge, Rent not paid when due shall bear interest from the fifth (5th) day after the date due
until paid at the lesser of (a) twelve percent (12%) per annum or (b) the maximum rate permitted by
Applicable Laws.

     26.2. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent payment
herein stipulated shall be deemed to be other than on account of the Rent, nor shall any
endorsement or statement on any check or any letter accompanying any check or payment as Rent be
deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such Rent or pursue any other remedy provided in this
Lease or in equity or at law. If a dispute shall arise as to any amount or sum of money to be paid
by Tenant to Landlord hereunder, Tenant shall have the right to make payment “under protest,” such
payment shall not be regarded as a voluntary payment, and there shall survive the right on the part
of Tenant to institute suit for recovery of the payment paid under protest.

     26.3. If Tenant fails to pay any sum of money (other than Basic Annual Rent) required to be
paid by it hereunder, or shall fail to perform any other act on its part to be performed hereunder,
Landlord may, without waiving or releasing Tenant from any obligations of Tenant, but shall not be
obligated to, make such payment or perform such act; provided that (a) such failure by
Tenant continues beyond all applicable notice and cure periods after Landlord delivers notice to
Tenant demanding performance by Tenant; or (b) such failure by Tenant reasonably could be expected
to result in a violation of Applicable Laws, damage to property or injury to any person, or the
cancellation of an insurance policy maintained by Landlord. Notwithstanding the foregoing, in the
event of an emergency, Landlord shall have the right to enter the Property and act in accordance
with its rights as provided elsewhere in this Lease. Tenant shall pay to Landlord as Additional
Rent all sums so paid or incurred by Landlord, together with interest thereon, from the date such
sums were paid or incurred, at the annual rate equal to twelve percent (12%) per annum or highest
rate permitted by Applicable Laws, whichever is less.

     26.4. The occurrence of any one or more of the following events shall constitute a
“Default” hereunder by Tenant:

          26.4.1 The failure by Tenant to make any payment of Rent, as and when due, where such failure
shall continue for a period of five (5) days after written notice thereof from Landlord to Tenant;

          26.4.2 The failure by Tenant to observe or perform any obligation or covenant contained herein
to be performed by Tenant (other than described in Subsections 26.4.1 and 26.4.2),
where such failure shall continue for a period of ten (10) business days after written notice
thereof from Landlord to Tenant; provided that, if the nature of Tenant’s default is such
that it reasonably requires more than ten (10) business days to cure, Tenant shall not be deemed to
be in default if Tenant shall commence such cure within said ten (10) business day period and
thereafter diligently prosecute the same to completion;

          26.4.3 Tenant makes an assignment for the benefit of creditors;

          26.4.4 A receiver, trustee or custodian is appointed to or does take title, possession or
control of all or substantially all of Tenant’s assets;

          26.4.5 Tenant files a voluntary petition under the United States Bankruptcy Code or any
successor statute (the “Bankruptcy Code”) or an order for relief is entered against Tenant
pursuant to a voluntary or involuntary proceeding commenced under any chapter of the Bankruptcy
Code;

          26.4.6 Any involuntary petition if filed against Tenant under any chapter of the Bankruptcy
Code and is not dismissed within sixty (60) days;

          26.4.7 Failure to deliver an estoppel certificate in accordance with Article 31;

          26.4.8 The occurrence of a monetary or material non-monetary default under the Illumina Lease;

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          26.4.9 The occurrence of any Transfer that is not in compliance with the provisions of
Article 27, where such failure shall continue for a period of ten (10) days after written
notice thereof from Landlord to Tenant; or

          26.4.10 Tenant’s interest in this Lease is attached, executed upon or otherwise judicially
seized and such action is not released within one hundred twenty (120) days of the action.

     No notice given above shall be deemed a forfeiture or a termination of this Lease unless
Landlord elects otherwise in such notice.

     26.5. In the event of a Default by Tenant, and at any time thereafter, with or without notice
or demand and without limiting Landlord in the exercise of any right or remedy that Landlord may
have, Landlord shall be entitled to terminate Tenant’s right to possession of the Premises by any
lawful means, in which case this Lease shall terminate and Tenant shall immediately thereafter,
surrender possession of the Premises to Landlord. In such event, Landlord shall have the right to
re-enter and remove all persons and property, and such property may be removed and stored in a
public warehouse or elsewhere at the cost and for the account of Tenant, all without service of
notice or resort to legal process and without being deemed guilty of trespass or becoming liable
for any loss or damage that may be occasioned thereby. In the event that Landlord shall elect to
so terminate this Lease, then Landlord shall be entitled to recover from Tenant all damages
incurred by Landlord by reason of Tenant’s default, including, without limitation:

          26.5.1 The worth at the time of award of the unpaid Rent that had been earned at the time of
termination; plus

          26.5.2 The worth at the time of award of the amount by which the unpaid Rent that would have
been earned during the period commencing with termination of this Lease and ending at the time of
award exceeds that portion of the loss of Landlord’s rental income from the Premises that Tenant
proves could have been reasonably avoided; plus

          26.5.3 The worth at the time of award of the amount by which the unpaid Rent for the balance
of the Term after the time of award exceeds the amount of the loss of Landlord’s rental income from
the Premises that Tenant proves could be reasonably avoided; plus

          26.5.4 Any other amount necessary to compensate Landlord for all the detriment caused by
Tenant’s failure to perform its obligations under this Lease or that in the ordinary course of
things would be likely to result therefrom, including, without limitation, the cost of restoring
the Premises to the condition required under the terms of this Lease.

As used in Subsections 26.5.1 and 26.5.2, “worth at the time of award” shall be
computed by allowing interest at the rate specified in Section 26.1. As used in
Subsection 26.5.3 above, the “worth at the time of the award” shall be computed by taking
the present value of such amount, using the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award plus one (1) percentage point.

     26.6. In addition to any other remedies available to Landlord at law or in equity and under
this Lease, Landlord shall have the remedy described in California Civil Code Section 1951.4
(Landlord may continue this Lease in effect after Tenant’s Default and abandonment and recover Rent
as it becomes due, provided Tenant has the right to sublet or assign, subject only to reasonable
limitations). In addition, Landlord shall not be liable in any way whatsoever for its failure or
refusal to relet the Premises. For purposes of this Section 26.6, the following acts by
Landlord will not constitute the termination of Tenant’s right to possession of the Premises:

     Acts of maintenance or preservation or efforts to relet the Premises, including, but not
limited to, alterations, remodeling, redecorating, repairs, replacements and/or painting as
Landlord shall consider advisable for the purpose of reletting the Premises or any part thereof, or

     The appointment of a receiver upon the initiative of Landlord to protect Landlord’s interest
under this Lease or in the Property.

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Notwithstanding the foregoing, in the event of a Default by Tenant, Landlord may elect at any time
to terminate this Lease and to recover damages to which Landlord is entitled.

     26.7. In the event Landlord elects to terminate this Lease and relet the Premises, Landlord
may execute any new lease in its own name. Tenant hereunder shall have no right or authority
whatsoever to collect any Rent from such tenant. The proceeds of any such reletting shall be
applied as follows:

          26.7.1 First, to the payment of any indebtedness other than Rent due hereunder from Tenant to
Landlord, including, without limitation, storage charges or brokerage commissions owing from Tenant
to Landlord as the result of such reletting;

          26.7.2 Second, to the payment of the costs and expenses of reletting the Premises, including
(a) alterations and repairs that Landlord deems reasonably necessary and advisable and (b)
reasonable attorneys’ fees, charges and disbursements incurred by Landlord in connection with the
retaking of the Premises and such reletting;

          26.7.3 Third, to the payment of Rent and other charges due and unpaid hereunder; and

          26.7.4 Fourth, to the payment of future Rent and other damages payable by Tenant under this
Lease.

     26.8. All of Landlord’s rights, options and remedies hereunder shall be construed and held to
be nonexclusive and cumulative. Landlord shall have the right to pursue any one or all of such
remedies, or any other remedy or relief that may be provided by Applicable Laws, whether or not
stated in this Lease. No waiver of any default of Tenant hereunder shall be implied from any
acceptance by Landlord of any Rent or other payments due hereunder or any omission by Landlord to
take any action on account of such default if such default persists or is repeated, and no express
waiver shall affect defaults other than as specified in said waiver.

     26.9. Landlord’s termination of (a) this Lease or (b) Tenant’s right to possession of the
Premises shall not relieve Tenant of any liability to Landlord that has previously accrued or that
shall arise based upon events that occurred prior to the later to occur of (i) the date of Lease
termination or (ii) the date Tenant surrenders possession of the Premises.

     26.10. In the event of a Default by Tenant hereunder, to the fullest extent required by
Applicable Laws (to the extent such Applicable Laws cannot be modified by contract), Landlord shall
use commercially reasonable efforts to mitigate its damages.

     26.11. To the extent permitted by Applicable Laws, Tenant waives any and all rights of
redemption granted by or under any present or future Applicable Laws if Tenant is evicted or
dispossessed for any cause, or if Landlord obtains possession of the Premises due to Tenant’s
default hereunder or otherwise.

     26.12. Landlord shall not be in default under this Lease unless Landlord fails to perform
obligations required of Landlord within a reasonable time, but in no event shall such failure
continue for more than thirty (30) days after written notice from Tenant specifying the nature of
Landlord’s failure; provided, however, that if the nature of Landlord’s obligation
is such that more than thirty (30) days are required for its performance, then Landlord shall not
be in default if Landlord commences performance within such thirty (30) day period and thereafter
diligently prosecutes the same to completion. In the event of any default by Landlord (beyond the
expiration of all applicable notice and cure periods), Tenant may exercise any rights and remedies
available at law or in equity.

     26.13. In the event of any default by Landlord, Tenant shall give notice by registered or
certified mail to any (a) beneficiary of a deed of trust or (b) mortgagee under a mortgage covering
the Property or any portion thereof and to any landlord of any lease of land upon or within which
the Premises are located, and shall offer such beneficiary, mortgagee or landlord a reasonable
opportunity to cure the default, including time to obtain possession of the Premises by power of
sale or a judicial action if such should prove necessary to effect a cure; provided that Landlord
shall furnish to Tenant in writing, upon written request by Tenant, the names and addresses of all
such persons who are to receive such notices; provided, however, in no event shall
such reasonable opportunity to cure exceed an additional sixty (60) days within which to

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cure or
correct such default (or if such default cannot be cured or corrected within that time, then such
additional time as may be necessary if such mortgagee has commenced within such sixty
(60) day period and is diligently pursuing the remedies or steps necessary to cure or correct
such default).

27. Assignment or Subletting.

     27.1. Except as hereinafter expressly permitted, Tenant shall not, either voluntarily or by
operation of Applicable Laws, directly or indirectly sell, hypothecate, assign, pledge, encumber or
otherwise transfer this Lease, or sublet the Premises or any part hereof (each, a
“Transfer”), without Landlord’s prior written consent, which consent Landlord may not
unreasonably withhold, condition or delay. Tenant shall have the right to Transfer without
Landlord’s prior written consent the Premises or any portion thereof to any person or entity that:
(a) directly, or indirectly through one or more intermediaries, (i) controls, is controlled by, or
is under common control with Tenant, (ii) acquires all or substantially all of the assets of
Tenant, or (iii) is the resulting entity of a merger or consolidation of Tenant with another
entity; and (b) has a net worth equal to Two Hundred Million Dollars ($200,000,000) (each, a
“Tenant’s Affiliate”), provided (1) Tenant shall notify Landlord in writing at least ten
(10) days prior to the effectiveness of such Transfer to Tenant’s Affiliate (an “Exempt
Transfer”); and (2) Tenant remains obligated under this Lease. For purposes of Exempt
Transfers, “control” requires both (x) owning (directly or indirectly) more than fifty-one percent
(51%) of the stock or other equity interests of another person and (y) possessing, directly or
indirectly, the power to direct or cause the direction of the management and policies of such
person.

     27.2. In the event Tenant desires to effect a Transfer, then, at least twenty (20) business
days but not more than one hundred twenty (120) days prior to the date when Tenant desires the
assignment or sublease to be effective (the “Transfer Date”), Tenant shall provide written
notice to Landlord (the “Transfer Notice”) containing information (including references)
concerning the character of the proposed transferee, assignee or sublessee; the Transfer Date; any
ownership or commercial relationship between Tenant and the proposed transferee, assignee or
sublessee; and the consideration and all other material terms and conditions of the proposed
Transfer; and evidence respecting the relevant business experience and financial responsibility and
status of the proposed transferee, assignee or sublessee, all in such detail as Landlord shall
reasonably require (the “Transfer Information”). Tenant shall also tender to Landlord the
actual, documented and reasonable attorneys’ fees and other costs or overhead expenses incurred by
Landlord in reviewing Tenant’s request for such Transfer (not to exceed Two Thousand Five Hundred
Dollars ($2,500.00) in the aggregate per Transfer request).

     27.3. Landlord, in determining whether consent should be given to a proposed Transfer, may
give consideration to (a) the financial strength of such assignee (notwithstanding Tenant
remaining liable for Tenant’s performance), and (b) any change in use that such transferee,
assignee or sublessee proposes to make in the use of the Premises. In no event shall Landlord be
deemed to be unreasonable for declining to consent to a Transfer to a transferee, assignee or
sublessee of lacking financial qualifications or seeking a change in the Permitted Use, or
jeopardizing directly or indirectly the status of Landlord or any of Landlord’s affiliates as a
Real Estate Investment Trust under the Internal Revenue Code of 1986 (the “Code”).
Notwithstanding anything contained in this Lease to the contrary, (w) no Transfer shall be
consummated on any basis such that the rental or other amounts to be paid by the occupant,
assignee, manager or other transferee thereunder would be based, in whole or in part, on the income
or profits derived by the business activities of such occupant, assignee, manager or other
transferee; (x) Tenant shall not furnish or render any services to an occupant, assignee, manager
or other transferee with respect to whom transfer consideration is required to be paid, or manage
or operate the Premises or any capital additions so transferred, with respect to which transfer
consideration is being paid; (y) Tenant shall not consummate a Transfer with any person in which
Landlord owns an interest, directly or indirectly (by applying constructive ownership rules set
forth in Section 856(d)(5) of the Code); and (z) Tenant shall not consummate a Transfer with any
person or in any manner that could cause any portion of the amounts received by Landlord pursuant
to this Lease or any sublease, license or other arrangement for the right to use, occupy or possess
any portion of the Premises to fail to qualify as “rents from real property” within the meaning of
Section 856(d) of the Code, or any similar or successor provision thereto or which could cause any
other income of Landlord to fail to qualify as income described in Section 856(c)(2) of the Code.
Landlord shall respond to Tenant’s proposed Transfer within twenty (20) days after receipt of
Tenant’s Transfer request. If Landlord fails to respond within such twenty

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(20) day period, then
Tenant shall provide Landlord with a second written notice stating in bold and all caps 12 point
font that “Landlord’s failure to respond to Tenant’s Transfer request within
five (5) days after Landlord’s receipt of this second notice shall be deemed approval by
Landlord,” and if Landlord does not respond within such five (5) day period, then Landlord shall be
deemed to have approved such Transfer request.

     27.4. As conditions precedent to Tenant subleasing the Premises or to Landlord considering a
request by Tenant to Tenant’s transfer of rights or sharing of the Premises, Landlord may require
any or all of the following:

          27.4.1 Tenant shall remain fully liable under this Lease during the unexpired Term;

          27.4.2 Tenant shall provide Landlord with the Transfer Information;

          27.4.3 If Tenant’s transfer of rights or sharing of the Premises provides for the receipt by,
on behalf of or on account of Tenant of any consideration of any kind whatsoever (including,
without limitation, a premium rental for a sublease or lump sum payment for an assignment) in
excess of the rental and other charges due to Landlord under this Lease, Tenant shall pay fifty
percent (50%) of all of such excess to Landlord, after deductions for tenant improvement allowances
actually provided by Tenant, alterations (including hard and soft costs), cash and other monetary
concessions, marketing expenses, free rent, brokerage commissions and the actual documented and
reasonable attorneys fees necessarily incurred in negotiating such sublease or assignment. If said
consideration consists of cash paid to Tenant, payment to Landlord shall be made upon receipt by
Tenant of such cash payment;

          27.4.4 The proposed transferee, assignee or sublessee shall agree that, in the event Landlord
gives such proposed transferee, assignee or sublessee notice that Tenant is in default under this
Lease, such proposed transferee, assignee or sublessee shall thereafter make all payments otherwise
due Tenant directly to Landlord, which payments shall be received by Landlord without any liability
being incurred by Landlord, except to credit such payment against those due by Tenant under this
Lease, and any such proposed transferee, assignee or sublessee shall agree to attorn to Landlord or
its successors and assigns should this Lease be terminated for any reason; provided,
however, that in no event shall Landlord or its Lenders, successors or assigns be obligated
to accept such attornment;

          27.4.5 Any such consent to Transfer shall be effected on Landlord’s forms, subject to changes
by Tenant that are satisfactory to Landlord in its reasonable discretion;

          27.4.6 Tenant shall not then be in default hereunder (beyond the expiration of all applicable
notice and cure periods) in any respect;

          27.4.7 Such proposed transferee, assignee or sublessee’s use of the Premises shall not be
inconsistent with the Permitted Use;

          27.4.8 Landlord shall not be bound by any provision of any agreement pertaining to the
Transfer, except for Landlord’s written consent to the same;

          27.4.9 Tenant shall pay all transfer and other taxes (including interest and penalties)
assessed or payable for any Transfer;

          27.4.10 Landlord’s consent (or waiver of its rights) for any Transfer shall not waive
Landlord’s right to consent to any later Transfer;

          27.4.11 Tenant shall deliver to Landlord one executed copy of any and all written instruments
evidencing the Transfer; and

          27.4.12 A list of Hazardous Materials (as defined in Section 40.6 below), certified by
the proposed transferee, assignee or sublessee to be true and correct, that the proposed
transferee, assignee or sublessee intends to use or store in the Property. Additionally, Tenant
shall deliver to Landlord, on or before the date any proposed transferee, assignee or sublessee
takes occupancy of the Premises, all of the items relating to Hazardous Materials of such proposed
transferee, assignee or sublessee as described in Section 40.2.

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     27.5. Any Transfer that is not in compliance with the provisions of this Article 27
shall be void and constitute a “Default” hereunder.

     27.6. The consent by Landlord to a Transfer shall not relieve Tenant or proposed transferee,
assignee or sublessee from obtaining Landlord’s consent to any further Transfer, nor shall it
release Tenant or any proposed transferee, assignee or sublessee of Tenant from full and primary
liability under this Lease.

     27.7. Notwithstanding any Transfer, Tenant shall remain fully and primarily liable for the
payment of all Rent and other sums due or to become due hereunder, and for the full performance of
all other terms, conditions and covenants to be kept and performed by Tenant. The acceptance of
Rent or any other sum due hereunder, or the acceptance of performance of any other term, covenant
or condition thereof, from any person or entity other than Tenant shall not be deemed a waiver of
any of the provisions of this Lease or a consent to any Transfer.

     27.8. Licenses to Business Affiliates. Notwithstanding any contrary provision of this
Article 27, the original Tenant named hereunder (but not any assignee or subtenant) shall
have the right, without the receipt of Landlord’s consent, but on prior written notice to Landlord,
to license (but not sublease) up to an aggregate of up to ten percent (10%) of the rentable square
feet of the Expansion Premises to individuals or entities (each, a “Business Affiliate”),
which license to a Business Affiliate shall be on and subject to all of the following conditions:
(i) Tenant shall have a direct contractual business relationship (relating to a primary business of
Tenant conducted in the Expansion Premises and other than Business Affiliate’s use of the Expansion
Premises) with each such Business Affiliate; (ii) each such Business Affiliate shall be of a
character and reputation consistent with the quality of the Buildings; (iii) each such license
shall clearly specify that it is only a contract right and that the Business Affiliate is not a
subtenant and has no interest in real property; (iv) each such Business Affiliate’s use of the
Expansion Premises is in a manner consistent with the Permitted Use; (v) no demising walls or
separate entrances shall be constructed in the Expansion Premises to accommodate any such license;
(vi) the term of such license shall not exceed six (6) months; and (vii) the licensee shall pay no
rent or other compensation to Tenant in respect of such license. No such license shall relieve
Tenant from any liability under this Lease.

     27.9. If Tenant sublets the Premises or any portion thereof, Tenant hereby immediately and
irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent
from any such subletting, and appoints Landlord as assignee and attorney-in-fact for Tenant, and
Landlord (or a receiver for Tenant appointed on Landlord’s application) may collect such rent and
apply it toward Tenant’s obligations under this Lease; provided that, until the occurrence
of a Default (beyond the expiration at all applicable notice and cure periods) by Tenant, Tenant
shall have the right to collect such rent.

28. Attorneys’ Fees. If either party commences an action against the other party
arising out of or in connection with this Lease, then the substantially prevailing party shall be
entitled to have and recover from the other party reasonable attorneys’ fees, charges and
disbursements and costs of suit.

29.
[Intentionally Omitted].

30. Definition of Landlord. With regard to obligations imposed upon Landlord pursuant
to this Lease, the term “Landlord,” as used in this Lease, shall refer only to Landlord or
Landlord’s then-current successor-in-interest. In the event of any transfer, assignment or
conveyance of Landlord’s interest in this Lease or in Landlord’s fee title to or leasehold interest
in the Property, as applicable, Landlord herein named (and in case of any subsequent transfers or
conveyances, the subsequent Landlord) shall be automatically freed and relieved, from and after the
date of such transfer, assignment or conveyance, from all liability for the performance of any
covenants or obligations contained in this Lease thereafter to be performed by Landlord and,
without further agreement, the transferee, assignee or conveyee of Landlord’s in this Lease or in
Landlord’s fee title to or leasehold interest in the Property, as applicable, shall be deemed to
have assumed and agreed to observe and perform any and all covenants and obligations of Landlord
hereunder
during the tenure of its interest in this Lease or the Property. Landlord or any subsequent
Landlord may transfer its interest in the Property or this Lease without Tenant’s consent.

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31. Estoppel Certificate. Tenant shall, within fifteen (15) days of receipt of
written notice from Landlord, execute, acknowledge and deliver a statement in writing substantially
in the form attached to this Lease as Exhibit I, or on any other commercially reasonable form
reasonably requested by a proposed Lender or purchaser, (a) certifying that this Lease is
unmodified and in full force and effect (or, if modified, stating the nature of such modification
and certifying that this Lease as so modified is in full force and effect) and the dates to which
rental and other charges are paid in advance, if any, (b) acknowledging that there are not, to
Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such
defaults if any are claimed, and (c) setting forth such further information with respect to this
Lease or the Property as may be reasonably requested thereon. Any such statement may be relied
upon by any prospective purchaser or encumbrancer of all or any portion of the real property of
which the Premises are a part. Tenant’s failure to deliver such statement within such the
prescribed time shall, at Landlord’s option, constitute a Default under this Lease, and, in any
event, shall be binding upon Tenant that this Lease is in full force and effect and without
modification except as may be represented by Landlord in any certificate prepared by Landlord and
delivered to Tenant for execution and that all other statements set forth in such certificate are
true and correct. Landlord shall, within fifteen (15) days of receipt of written notice from
Tenant but in no event more than once every twelve (12) months, provide to Tenant an estoppel
certificate signed by Landlord, (a) certifying that this Lease is unmodified and in full force and
effect (or, if modified, stating the nature of such modification and certifying that this Lease as
so modified is in full force and effect) and the dates to which rental and other charges are paid
in advance, if any, and (b) acknowledging that there are not, to Landlord’s knowledge, any uncured
defaults on the part of Tenant hereunder, or specifying such defaults if any are claimed.

32. Joint and Several Obligations. If more than one person or entity executes this
Lease as Tenant, then:

     32.1. Each of them is jointly and severally liable for the keeping, observing and performing
of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept,
observed or performed by Tenant; and

     32.2. The term “Tenant” as used in this Lease shall mean and include each of them,
jointly and severally. The act of, notice from, notice to, refund to, or signature of any one or
more of them with respect to the tenancy under this Lease, including, without limitation, any
renewal, extension, expiration, termination or modification of this Lease, shall be binding upon
each and all of the persons executing this Lease as Tenant with the same force and effect as if
each and all of them had so acted, so given or received such notice or refund, or so signed.

33. Limitation of Landlord’s Liability.

     33.1. If Landlord is in default under this Lease and, as a consequence, Tenant recovers a
monetary judgment against Landlord, the judgment shall be satisfied only out of (a) the proceeds of
sale received on execution of the judgment and levy against the right, title and interest of
Landlord in the Property, (b) rent or other income from such real property receivable by Landlord,
(c) the consideration received by Landlord from the sale, financing, refinancing or other
disposition of all or any part of Landlord’s right, title or interest in the Property and (d) any
casualty insurance proceeds which Landlord receives for damage to the Property.

     33.2. Landlord shall not be personally liable for any deficiency under this Lease. If
Landlord is a partnership or joint venture, then the partners of such partnership shall not be
personally liable for Landlord’s obligations under this Lease, and no partner of Landlord shall be
sued or named as a party in any suit or action, and service of process shall not be made against
any partner of Landlord except as may be necessary to secure jurisdiction of the partnership or
joint venture. If Landlord is a corporation, then the shareholders, directors, officers, employees
and agents of such corporation shall not be personally liable for Landlord’s obligations under this
Lease, and no shareholder, director, officer, employee or agent of Landlord shall be sued or named
as a party in any suit or action, and service of process shall not be made against any
shareholder, director, officer, employee or agent of Landlord. If Landlord is a limited
liability company, then the members of such limited liability company shall not be personally
liable for Landlord’s obligations under this Lease, and no member of Landlord shall be sued or
named as a party in any suit or action, and service of process shall not be made against any member
of Landlord except as may be necessary to secure jurisdiction of the limited liability company. No
partner, shareholder, director, employee, member or agent of Landlord shall be required to

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answer
or otherwise plead to any service of process, and no judgment shall be taken or writ of execution
levied against any partner, shareholder, director, employee or agent of Landlord.

     33.3. If Tenant is a partnership or joint venture, then the partners of such partnership
shall not be personally liable for Tenant’s obligations under this Lease, and no partner of Tenant
shall be sued or named as a party in any suit or action, and service of process shall not be made
against any partner of Tenant except as may be necessary to secure jurisdiction of the partnership
or joint venture. If Tenant is a corporation, then the shareholders, directors, officers,
employees and agents of such corporation shall not be personally liable for Tenant’s obligations
under this Lease, and no shareholder, director, officer, employee or agent of Tenant shall be sued
or named as a party in any suit or action, and service of process shall not be made against any
shareholder, director, officer, employee or agent of Tenant. If Tenant is a limited liability
company, then the members of such limited liability company shall not be personally liable for
Tenant’s obligations under this Lease, and no member of Tenant shall be sued or named as a party
in any suit or action, and service of process shall not be made against any member of Tenant
except as may be necessary to secure jurisdiction of the limited liability company. No partner,
shareholder, director, employee, member or agent of Tenant shall be required to answer or
otherwise plead to any service of process, and no judgment shall be taken or writ of execution
levied against any partner, shareholder, director, employee or agent of Tenant. Notwithstanding
the foregoing, in no event shall the provisions of this Section 33.3 relieve Tenant’s
partners, shareholders, directors, employees, members or agents of any personal liability arising
out of, or in connection with, such partner’s, shareholder’s, director’s, employee’s, member’s or
agent’s gross negligence or willful misconduct.

     33.4. Each of the covenants and agreements of this Article 33 shall be applicable to
any covenant or agreement either expressly contained in this Lease or imposed by Applicable Laws
and shall survive the expiration or earlier termination of this Lease.

34. Control by Landlord.

     34.1. Subject to Section 34.2, Landlord and Landlord’s offices, employees, lenders,
agents, architects, engineering consultants, design team, general contractor, and subcontractors
(collectively “Landlord’s Agents”) shall have the right, at any time, to enter the Property
and the Buildings to commence and prosecute the construction of Landlord’s Construction Work, the
Tenant Improvements and to attend to all other activities related thereto.

     34.2. Landlord and Landlord’s Agents may, at any and all reasonable times during non-business
hours (or during business hours if Tenant so requests), and upon twenty-four (24) hours’ prior
notice (provided that no time restrictions shall apply or advance notice be required if an
emergency necessitates immediate entry), enter the Property to (a) inspect the same and to
determine whether Tenant is in compliance with its obligations hereunder, (b) supply any service
Landlord is required to provide hereunder, (c) show the Property to prospective purchasers or
tenants during the final year of the Term, (d) post notices of nonresponsibility, (e) access the
telephone equipment, electrical substation and fire risers, or (f) alter, improve or repair any
portion of the Buildings. In connection with any such alteration, improvement or repair as
described in Subsection 34.2(f) above, Landlord and Landlord’s Agents may erect in the
Property scaffolding and other structures reasonably required for the alteration, improvement or
repair work to be performed. Subject to Section 18.5 above, in no event shall Tenant’s
Rent abate as a result of Landlord’s activities pursuant to this Section 34.1;
provided, however, that all such activities shall be conducted in such a manner so
as to cause as little interference to Tenant as is reasonably possible. Landlord shall at all
times retain a key with which to unlock all of the doors in the Premises. If an emergency (where
there is an imminent threat to persons or property) necessitates immediate access to the Premises,
Landlord may use whatever force is necessary to enter the Premises, and any such entry to the
Premises shall not constitute a forcible or unlawful entry to the Premises, a detainer of the
Premises, or an eviction of Tenant from the Premises or any portion thereof.

35. Quiet Enjoyment. So long as Tenant is not in default under this Lease or as
otherwise permitted by this Lease, Landlord or anyone acting through or under Landlord shall not
disturb Tenant’s occupancy of the Premises. Notwithstanding the foregoing, to the extent that
Landlord uses commercially reasonable efforts to minimize any interference with the construction of
the Expansion Building may have on Tenant’s use and quiet enjoyment of the Diversified Building
Premises for Tenant’s normal business operations, Tenant hereby (i) accepts any and all

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inconveniences associated with the construction of the Expansion Building, including, any noise,
paint, fumes, dust, debris, obstruction of access (including any obstruction caused by the erection
of scaffolding, barricades or other necessary structures on the Property), or any other
inconvenience caused by the construction of the Expansion Building, (ii) agrees that the
performance of the construction of the Expansion Building shall not constitute a constructive
eviction nor shall Tenant be entitled to an abatement of Rent, and (iii) acknowledges and agrees
that Landlord shall not, for any reason, be responsible or liable to Tenant for any direct or
indirect injury to Tenant or Tenant’s Agents, or interference with Tenant’s business, arising from
the construction of the Expansion Building; provided, however, that if Landlord
fails to use its commercially reasonable efforts to minimize any interference that the construction
of the Expansion Building may have on Tenant’s use of the Diversified Building Premises for
Tenant’s normal business operations, such failure results in an Adverse Condition, and as a direct
result of such Adverse Condition, Tenant is unable to conduct its business in a reasonable manner
in a material portion of the Premises, Tenant shall be entitled to an abatement of rent with
respect to such Adverse Condition to the extent Tenant is entitled to an abatement of rent pursuant
to the terms and conditions of Section 18.5 above.

36. Subordination and Attornment.

     36.1. Subject to the delivery of the non-disturbance agreements described in this Article
36 as a condition precedent to any such subordination, this Lease shall be subject and
subordinate to the lien of any mortgage, deed of trust, or lease in which Landlord is tenant now or
hereafter in force against the Property or any portion thereof and to all advances made or
hereafter to be made upon the security thereof without the necessity of the execution and delivery
of any further instruments on the part of Tenant to effectuate such subordination. In
consideration of, and as a condition precedent to, Tenant’s agreement to permit its interest
pursuant to this Lease to be subordinated to any particular future ground or underlying lease of
the Buildings or the Property or to the lien of any mortgage or trust deed, hereafter enforced
against the Buildings or the Property and to any renewals, extensions, modifications,
consolidations and replacements thereof, Landlord shall deliver to Tenant a non-disturbance
agreement on (a) the form of Exhibit M attached hereto, (b) a commercially reasonable form of
non-disturbance agreements of the lessor under such ground lease or underlying lease or the holder
of such mortgage or trust deed, or (c) another commercially reasonable form. Landlord’s delivery
to Tenant of non-disturbance agreement(s) in favor of Tenant from any ground lessors, mortgage
holders or lien holders of Landlord who later came into existence at any time prior to the
expiration of the Term shall be in consideration of, and a condition precedent to, Tenant’s
agreement to be bound by the terms of this Article 36. Tenant shall be entitled, at
Tenant’s sole cost and expense, to record any such non-disturbance agreement promptly after full
execution and delivery of such agreement.

     36.2. Notwithstanding the foregoing, Tenant shall execute and deliver upon demand such further
commercially reasonable instrument or instruments evidencing such subordination of this Lease to
the lien of any such mortgage or mortgages or deeds of trust or lease in which Landlord is tenant
as may be required by Landlord. However, if any such mortgagee, beneficiary or Landlord under
lease wherein Landlord is tenant so elects, this Lease shall be deemed prior in lien to any such
lease, mortgage, or deed of trust upon or including the Property regardless of date and Tenant
shall execute a statement in writing to such effect at Landlord’s request.

     36.3. Upon written request of Landlord and opportunity for Tenant to review, Tenant agrees to
execute any Lease amendments not materially altering the terms of this Lease, if required by a
mortgagee or beneficiary of a deed of trust encumbering real property of which the Premises
constitute a part incident to the financing of the real property of which the Premises constitute a
part. Any change affecting the amount or timing of the consideration to be paid by
Tenant or modifying the term of this Lease shall be deemed as materially altering the terms
hereof.

     36.4. Subject to Section 36.1, in the event any proceedings are brought for
foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of
trust made by Landlord covering the Property, Tenant shall at the election of the purchaser at such
foreclosure or sale attorn to the purchaser upon any such foreclosure or sale and recognize such
purchaser as Landlord under this Lease.

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37. Surrender.

     37.1. No surrender of possession of any part of the Property shall release Tenant from any of
its obligations hereunder, unless such surrender is accepted in writing by Landlord.

     37.2. The voluntary or other surrender of this Lease by Tenant shall not effect a merger with
Landlord’s fee title or leasehold interest in the Property or any portion thereof, unless Landlord
consents in writing, and shall, at Landlord’s option, operate as an assignment to Landlord of any
or all subleases.

     37.3. The voluntary or other surrender of any ground or other underlying lease that now exists
or may hereafter be executed affecting the Property or any portion thereof, or a mutual
cancellation thereof or of Landlord’s interest therein by Landlord and its lessor shall not effect
a merger with Landlord’s fee title or leasehold interest in the Property and shall, at the option
of the successor to Landlord’s interest in the Property or any portion thereof operate as an
assignment of this Lease.

     37.4. In the event Tenant has performed any Alterations in accordance with this Lease, upon
surrender of the Premises, Tenant shall reimburse Landlord for any extra costs and expenses
incurred by Landlord by reason of any delays in re-leasing the Premises caused by Tenant’s removal
of such Alterations.

38. Waiver and Modification No provision of this Lease may be modified, amended or
supplemented except by an agreement in writing signed by Landlord and Tenant. The waiver by
Landlord of any breach by Tenant of any term, covenant or condition herein contained shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition
herein contained. The waiver by Tenant of any breach by Landlord of any term, covenant or
condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same
or any other term, covenant or condition herein contained.

39. Waiver of Jury Trial and Counterclaims. To the extent allowed under Applicable
Laws, the parties waive trial by jury in any action, proceeding or counterclaim brought by the
other party hereto related to matters arising out of or in any way connected with this Lease; the
relationship between Landlord and Tenant; Tenant’s use or occupancy of the Property; or any claim
of injury or damage related to this Lease or the Property.

40. Hazardous Materials.

     40.1. After the Execution Date, Tenant shall not cause or permit any Hazardous Materials (as
hereinafter defined) to be brought upon, kept or used in or about the Property in violation of
Applicable Laws by Tenant or Tenant’s Agents. If Tenant breaches such obligation, or if the
presence of Hazardous Materials brought upon, kept or used in or about the Property by Tenant or
Tenant’s Agents results in contamination of the Property or any adjacent property, or if
contamination of the Property or any adjacent property by Hazardous Materials otherwise occurs
during the term of this Lease or any extension or renewal hereof or holding over hereunder (other
than in connection with substances that migrated to the Property from any adjoining property,
except in the event Tenant is aware of such contamination and neither remedies such contamination
nor promptly notifies Landlord of the existence of such contamination), then Tenant shall
indemnify, save, defend and hold Landlord, its agents and contractors harmless from and against any
and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including,
without limitation, diminution in value of the Property or any portion thereof;
damages for the loss or restriction on use of rentable or usable space or of any amenity of
the Property; damages arising from any adverse impact on marketing of space in the Property; and
sums paid in settlement of claims, attorneys’ fees, consultants’ fees and experts’ fees) that arise
during or after the Term as a result of such breach or contamination, except to the extent arising
solely out of Landlord’s construction of the Landlord’s Construction Work or the Tenant
Improvements; provided, however, in no event shall Tenant’s indemnity extend to
consequential damages; provided that this sentence shall not limit Landlord’s damages if, as a
result of Tenant’s breach of this Lease: (a) Landlord does not or is unable to lease the Premises
to another party, or (b) a third party is unable to occupy the Premises on the date specified in
such third party’s lease. This indemnification of Landlord by Tenant includes, without limitation,
costs incurred in connection with any investigation of site conditions or any cleanup, remedial,
removal or restoration work required by any Governmental Authority because of Hazardous

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Materials
present in the air, soil or groundwater above, on or under the Property. Without limiting the
foregoing, if the presence of any Hazardous Materials in, on, under or about the Property or any
adjacent property caused or permitted by Tenant or Tenant’s Agents results in any contamination of
the Property or any adjacent property, then Tenant shall promptly take all actions at its sole cost
and expense as are necessary to return the Property and any adjacent property to their respective
condition existing prior to the time of such contamination; provided that Landlord’s written
approval of such action shall first be obtained, which approval Landlord shall not unreasonably
withhold; and provided, further, that it shall be reasonable for Landlord to withhold its consent
if such actions could have a material adverse long-term or short-term effect on the Property.

     40.2. Landlord acknowledges that it is not the intent of this Article 40 to prohibit
Tenant from operating its business as described in Section 2.8 above. Tenant may operate
its business according to the custom of Tenant’s industry so long as the use or presence of
Hazardous Materials is strictly and properly monitored according to Applicable Laws. As a material
inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business,
Tenant agrees to deliver to Landlord prior to the Term Commencement Date a list identifying each
type of Hazardous Material to be present on the Property and setting forth any and all governmental
approvals or permits required in connection with the presence of such Hazardous Material on the
Property (the “Hazardous Materials List”). Tenant shall deliver to Landlord an updated
Hazardous Materials List on or prior to each annual anniversary of the Term Commencement Date and
shall also deliver an updated Hazardous Materials List before any new Hazardous Materials are
brought onto the Property. Tenant shall deliver to Landlord true and correct copies of the
following documents (hereinafter referred to as the “Documents”) relating to the handling,
storage, disposal and emission of Hazardous Materials prior to the Term Commencement Date or, if
unavailable at that time, concurrent with the receipt from or submission to any Governmental
Authority: permits; approvals; reports and correspondence; storage and management plans; notices
of violations of Applicable Laws; plans relating to the installation of any storage tanks to be
installed in or under the Property (provided that installation of storage tanks shall only
be permitted after Landlord has given Tenant its written consent to do so, which consent Landlord
may withhold in its sole and absolute discretion); and all closure plans or any other documents
required by any and all Governmental Authorities for any storage tanks installed in, on or under
the Property for the closure of any such storage tanks. Tenant shall not be required, however, to
provide Landlord with any portion of the Documents containing information of a proprietary nature
that, in and of themselves, do not contain a reference to any Hazardous Materials or activities
related to Hazardous Materials.

     40.3. At any time, and from time to time, prior to the expiration of the Term, Landlord shall
have the right to conduct appropriate tests of the Property to demonstrate that Hazardous Materials
are present or that contamination has occurred due to Tenant or Tenant’s agents, employees or
invitees. Tenant shall pay all reasonable costs of such tests of the Property if such tests
demonstrate that Tenant has breached any provision of this Lease regarding Hazardous Materials or
has any clean-up obligations under this Article 40.

     40.4. If underground or other storage tanks storing Hazardous Materials are: (a) located on
the Property; (b) hereafter placed on the Property by Tenant or Tenant’s Agents, (c) hereafter used
by Tenant or Tenant’s Agents, or (d) placed on the Property by any other party and Tenant is aware
that such party placed such underground or other storage tank on the Property, Tenant shall monitor
the storage tanks, maintain appropriate records, implement reporting procedures, properly close any
underground storage tanks, and take or cause to be taken all other steps
necessary or required under the Applicable Laws. Tenant shall pay all reasonable costs of
such tests of the Property

     40.5. Tenant’s and Landlord’s obligations under this Article 40 shall survive the
expiration or earlier termination of this Lease. During any period of time needed by Tenant or
Landlord after the termination of this Lease to complete the removal from the Property of any such
Hazardous Materials that Tenant is liable for pursuant to the terms and conditions of this Lease,
Tenant shall continue to pay Rent in accordance with this Lease, which Rent shall be prorated
daily.

     40.6. As used herein, the term “Hazardous Material” means any hazardous or toxic substance,
material or waste that is or becomes regulated by any Governmental Authority.

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41. Miscellaneous.

     41.1. This Lease shall not be effective until, and shall be contingent upon, the satisfaction
of each of the following conditions: (a) the Illumina Lease shall have been fully executed and be
in full force and effect, (b) Landlord shall have received Northwestern Mutual Life Insurance
Company’s consent to the Illumina Lease and release of its security interest in Parcel 3, (c)
Landlord shall have conveyed the Parcel 3 Land (including the Diversified Building) to, and
assigned all of its interests in this Lease to, BMR-9865 Towne Centre Drive, LLC, a Delaware
limited liability company, and (d) Landlord has received formal approval of substantial conformance
review and plan checks comments from the City of San Diego in connection with the Expansion
Building, which approval and comments shall not contain any required changes that cause Landlord to
materially alter the Landlord’s Construction Work or Tenant Improvements. If the conditions set
forth in this Section 41.1 are not satisfied or waived on or before April 10, 2007, this
Lease shall become null and void.

     41.2. Within five (5) business days after the end of each calendar month, Tenant shall submit
to Landlord an invoice, or, in the event an invoice is not available, an itemized list of expenses,
of all costs and expenses that: (a) Tenant has incurred during the prior month; and (b) Tenant has
reasonably determined that Landlord is obligated to reimburse such costs and expenses pursuant to
the terms of this Lease.

     41.3. This Lease shall be deemed and construed to be an “absolute net lease” and, except as
herein expressly provided, Landlord shall receive all payments required to be made by Tenant free
from all charges, assessments, impositions, expenses and deductions of any and every kind or nature
whatsoever. Landlord shall not be required to furnish any services or facilities or to make any
repairs, replacements or alterations of any kind in or on the Property except as specifically
provided herein. Tenant shall receive all invoices and bills relative to the Property (including
the Diversified Space) and, except as otherwise provided herein, shall pay for all expenses
directly to the person or company submitting a bill without first having to forward payment for the
expenses to Landlord. Tenant shall at Tenant’s sole cost and expense be responsible for the
management of the Property (other than the Diversified Space), shall maintain the landscaping and
parking lot, and shall make those additional repairs and alterations required of Tenant hereunder
to maintain the Property (other than the Diversified Space) in first class condition.

     41.4. Where applicable in this Lease, the singular includes the plural and the masculine or
neuter includes the masculine, feminine and neuter. The Section headings of this Lease are not a
part of this Lease and shall have no effect upon the construction or interpretation of any part
hereof.

     41.5. Submission of this instrument for examination or signature by Tenant does not constitute
a reservation of or option for a lease, and shall not be effective as a lease or otherwise until
execution by and delivery to both Landlord and Tenant.

     41.6. Time is of the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.

     41.7. Each provision of this Lease performable by Tenant shall be deemed both a covenant and a
condition.

     41.8. Whenever consent or approval of either party is required, that party shall not
unreasonably withhold such consent or approval, except as may be expressly set forth to the
contrary.

     41.9. The terms of this Lease are intended by the parties as a final expression of their
agreement with respect to the terms as are included herein, and may not be contradicted by evidence
of any prior or contemporaneous agreement.

     41.10. Any provision of this Lease that shall prove to be invalid, void or illegal shall in no
way affect, impair or invalidate any other provision hereof, and all other provisions of this Lease
shall remain in full force and effect and shall be interpreted as if the invalid, void or illegal
provision did not exist.

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     41.11. Landlord may, but shall not be obligated to, record a short form memorandum hereof
without Tenant’s consent. Tenant shall reasonably cooperate with Landlord in such recording.
Neither party shall record this Lease. Tenant shall have the right to record a memorandum of this
Lease (which Landlord shall execute); provided, however, that Tenant shall be
responsible for the cost of recording any memorandum of this Lease, including any transfer or other
taxes incurred in connection with said recordation. Landlord shall reasonably cooperate with
Tenant in such recording at Tenant’s sole cost and expense.

     41.12. The language in all parts of this Lease shall be in all cases construed as a whole
according to its fair meaning and not strictly for or against either Landlord or Tenant.

     41.13. Each of the covenants, conditions and agreements herein contained shall inure to the
benefit of and shall apply to and be binding upon the parties hereto and their respective heirs;
legatees; devisees; executors; administrators; and permitted successors, assigns, sublessees.
Nothing in this Section 41.13 shall in any way alter the provisions of this Lease
restricting assignment or subletting.

     41.14. Any notice, consent, demand, bill, statement or other communication required or
permitted to be given hereunder shall be in writing and shall be given by personal delivery,
overnight delivery with a reputable nationwide overnight delivery service, or certified mail
(return receipt requested), and if given by personal delivery, shall be deemed delivered upon
receipt; if given by overnight delivery, shall be deemed delivered one (1) day after deposit with a
reputable nationwide overnight delivery service; and, if given by certified mail (return receipt
requested), shall be deemed delivered three (3) business days after the time the notifying party
deposits the notice with the United States Postal Service. Any notices given pursuant to this
Lease shall be addressed to Tenant at the Premises, or to Landlord or Tenant at the addresses shown
in Sections 2.10 and 2.11, respectively. Either party may, by notice to the other
given pursuant to this Section, specify additional or different addresses for notice purposes.

     41.15. This Lease shall be governed by, construed and enforced in accordance with the laws of
the State in which the Property is located, without regard to such State’s conflict of law
principles.

     41.16. That individual or those individuals signing this Lease guarantee, warrant and
represent that said individual or individuals have the power, authority and legal capacity to sign
this Lease on behalf of and to bind all entities, corporations, partnerships, limited liability
companies, joint venturers or other organizations and entities on whose behalf said individual or
individuals have signed.

     41.17. To induce Landlord to enter into this Lease, Tenant agrees that it shall promptly
furnish to Landlord, from time to time, upon Landlord’s written request, the most recent audited
year-end financial statements reflecting Tenant’s current financial condition. Tenant shall,
within ninety (90) days after the end of Tenant’s financial year, furnish Landlord with a certified
copy of Tenant’s audited year-end financial statements for the previous year. Tenant represents
and warrants that all financial statements, records and information furnished by Tenant to Landlord
in connection with this Lease are true, correct and complete in all respects. Notwithstanding the
foregoing, the provisions of this Section 41.17 shall not apply to Tenant so long as Tenant
is a publicly traded company that is listed on a United States stock exchange.

     41.18. This Lease is subject to any recorded covenants, conditions or restrictions now or
hereinafter affecting the Premises or the Property (the “CC&Rs”). Tenant shall comply with
all CC&Rs except to the extent any future CC&Rs (a) materially adversely affects Tenant’s use of
the Premises for its Permitted Use; or (b) materially increase Tenant’s costs under this Lease.

42. Option to Extend Term. Tenant shall have the option (“Option”) to extend
the Term of this Lease as to the entire Premises (and no less than the entire Premises) upon the
following terms and conditions. Any extension of the Term pursuant to any Option shall be on all
the same terms and conditions as this Lease, except as follows:

     42.1. Tenant shall have three (3) options to extend the Term of this Lease by five (5) years
each (each, an “Extended Term”), upon the same terms and conditions as this Lease (except
as provided below). Basic Annual Rent for the Diversified Building Premises and the Expansion
Premises shall be adjusted on the first (1st) day of each Extended Term and every

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twenty-four (24)
months thereafter in accordance with Article 7. The Basic Annual Rent during each Extended
Term shall equal the greater of: (a) the Fair Market Value for the Extended Term; and (b) 102.5% of
the then-current Basic Annual Rent at the end of the then-current Term or Extended Term, as
applicable. “Fair Market Value” means the then-prevailing average annual rate that
comparable landlords have accepted in current transactions from new, non-equity (i.e., not being
offered equity in the Buildings), nonrenewal, nonexpansion and nonaffiliated tenants of similar
financial strength for comparable space in comparable class “A” office buildings comparably
located, with comparable size, quality and floor height in a first class office building, or as
appropriate, a laboratory building, taking into consideration all relevant factors, including,
without limitation, the proposed lease term, the tenant inducements, allowances or concessions, if
any, and excluding specialized tenant improvements or tenant paid improvements for a comparable
term, with the determination of Fair Market Value to take into account all relevant factors,
including tenant inducements, allowances or concessions, if any, the extent of the services
provided or to be provided to the Premises, and contraction and expansion options. In the event
the tenant inducements, allowances or concessions granted differ from the terms contained in this
Lease, an adjustment to the Fair Market Value shall be made on a basis consistent with the
adjustments commonly made in the market for comparable differences and concession packages. If
Landlord and Tenant cannot agree on the Fair Market Value for purposes of any Extended Term then
they shall engage a mutually agreeable independent third party appraiser, which appraiser shall be
a real estate broker with at least ten (10) years’ experience in appraising the rental value of
leased commercial premises (for research and development and laboratory uses) in the San Diego,
California area (the “Appraiser”). If the parties cannot agree on the Appraiser, each
shall within ten (10) days after such impasse appoint an Appraiser (meeting the qualifications set
forth above) and, within ten (10) days after the appointment of both such Appraisers, those two
Appraisers shall select a third Appraiser meeting the qualifications set forth above. If either
party fails to timely appoint an Appraiser, then the Appraiser the other party appoints shall be
the sole Appraiser. Within ten (10) days after appointment of all Appraiser(s), Landlord and
Tenant shall each simultaneously give the Appraisers (with a copy to the other party) its
determination of Fair Market Value, with such supporting data or information as each submitting
party determines appropriate. Within ten (10) days after such submissions, the Appraisers shall by
majority vote select either Landlord’s or Tenant’s Fair Market Value. The Appraisers may not
select or designate any other Fair Market Value. The determination of the Appraiser(s) shall bind
the parties

     42.2. The Option is not assignable separate and apart from this Lease.

     42.3. The Option is conditional upon Tenant giving Landlord written notice of its election to
exercise an Option at least twelve (12) months prior to the end of the expiration of the initial
term of this Lease and, if exercised, the applicable Extended Term. Time shall be of the essence
as to Tenant’s exercise of each Option. Tenant assumes full responsibility for maintaining a
record of the deadlines to exercise any Option(s). Tenant acknowledges that it would be
inequitable to require Landlord to accept any exercise of any Option(s) after the date provided for
in this Section.

     42.4. Notwithstanding anything contained in this Article 42, Tenant shall not have the
right to exercise an Option:

          42.4.1 During the time commencing from the date Landlord delivers to Tenant a written notice
that Tenant is in monetary or material non-monetary default under any provision of this Lease or
the Illumina Lease and continuing until Tenant has cured the specified default; or

          42.4.2 At any time after any Default as described in Article 26 of this Lease
(provided, however, that, for purposes of this Subsection 42.4(b), Landlord
shall not be required to provide Tenant with notice of such Default) and continuing until Tenant
cures any such Default, if such Default is susceptible to being cured; or

          42.4.3 In the event that Tenant has defaulted in the performance of its obligations under this
Lease three (3) or more times and a service or late charge has become payable under Section
26.1 for each of such defaults during the twelve (12)-month period immediately prior to the
date that Tenant intends to exercise an Option, whether or not Tenant has cured such defaults.

43

 

     42.5. The period of time within which Tenant may exercise an Option shall not be extended or
enlarged by reason of Tenant’s inability to exercise such Option because of the provisions of
Section 42.4.

43. Tenant’s Authority. Tenant hereby covenants and warrants that (a) Tenant is duly
incorporated or otherwise established or formed and validly existing under the laws of its state of
incorporation, establishment or formation, (b) Tenant has and is duly qualified to do business in
the state in which the Property is located, (c) Tenant has full corporate, partnership, trust,
association or other appropriate power and authority to enter into this Lease and to perform all
Tenant’s obligations hereunder and (d) each person (and all of the persons if more than one signs)
signing this Lease on behalf of Tenant is duly and validly authorized to do so.

44. Landlord’s Authority. Landlord hereby covenants and warrants that (a) Landlord is
duly incorporated or otherwise established or formed and validly existing under the laws of its
state of incorporation, establishment or formation, (b) Landlord has and is duly qualified to do
business in the state in which the Property is located, (c) Landlord has full corporate,
partnership, trust, association or other appropriate power and authority to enter into this Lease
and to perform all Landlord’s obligations hereunder and (d) each person (and all of the persons if
more than one signs) signing this Lease on behalf of Landlord is duly and validly authorized to do
so.

45. Confidentiality. Neither party shall disclose any terms or conditions of this
Lease (including Rent) or give a copy of this Lease to any third party, and Landlord shall not
release to any third party any nonpublic financial information or nonpublic information about
Tenant’s ownership structure that Tenant gives Landlord, except (a) if required by Applicable Laws
or in any judicial proceeding, provided that the releasing party has given the other party
reasonable notice of such requirement, if feasible, (b) to a party’s attorneys, accountants,
brokers and other bona fide consultants or advisers, provided such third parties agree to
be bound by this Section or (c) to bona fide prospective assignees or subtenants of this Lease,
provided they agree in writing to be bound by this Section.

46. Excavation. If any excavation shall be made upon land adjacent to or under the
Buildings, or shall be authorized to be made, Tenant shall afford to the person causing or
authorized to cause such excavation, license to enter the Property for the purpose of performing
such work as said person shall deem necessary or desirable to preserve and protect the Buildings
from injury or damage and to support the same by proper foundations, without any claim for damages
or liability against Landlord and without, subject to the terms and conditions of this Lease,
reducing or otherwise affecting Tenant’s obligations under this Lease.

47. Telecommunications Equipment. At any time during the Term, subject to the terms
of this Article 47 and subject to Landlord’s prior written approval, which approval shall
not be unreasonably withheld or
delayed, Tenant shall have the exclusive right to install, at Tenant’s sole cost and expense,
satellite or microwave dishes or other communication equipment (the “Telecommunications
Equipment”) upon the roof of the Expansion Building. The physical appearance and the size of
the Telecommunications Equipment shall be subject to Landlord’s written approval prior to
installation, which approval will not unreasonably be withheld, any covenants, conditions, or
restrictions encumbering the Property and, any Applicable Laws. Tenant shall maintain such
Telecommunications Equipment in good condition and repair, at Tenant’s sole cost and expense. The
cost of the Telecommunications Equipment, including but not limited to the permitting,
installation, maintenance and removal thereof shall be at Tenant’s sole cost and expense. If Tenant
fails to maintain its Telecommunications Equipment, or if Tenant fails to remove such
Telecommunications Equipment upon termination of this Lease, or fails to repair any damage caused
by such removal, Landlord may do so at Tenant’s expense. Tenant shall on demand reimburse Landlord
for all costs incurred by Landlord to effect such removal, which amounts shall be deemed Additional
Rent and shall include without limitation, all sums disbursed, incurred or deposited by Landlord,
including Landlord’s costs, expenses and actual attorneys’ fees with interest thereon. Tenant
shall indemnify, defend and hold harmless Landlord from and against any loss, cost, claim, lawsuit,
liability or expense (including reasonable attorneys’ fees and disbursements) arising directly or
indirectly out of Tenant’s failure to perform any of its obligations under this Article 47.

48. Access to Premises. Subject to Section 34.2, Tenant shall be granted
access to the Premises (including the parking facilities) twenty-four (24) hours per day, seven (7)
days per week, every day of the year.

44

 

49. Secured Areas. Notwithstanding anything to the contrary set forth in this Lease,
Tenant may designate certain areas of the Premises as “Secured Areas” should Tenant require such
areas for the purpose of securing certain valuable property or confidential information. Landlord
may not enter such Secured Areas except in the case of emergency or in the event of a Landlord
inspection, in which case Landlord shall provide Tenant with one (1) business day prior written
notice of the specific date and time of such Landlord inspection.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

45

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first above
written.

	 	 	 	 	 
	LANDLORD:	 	 
	 
	 	 	 	 
	BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	ILLUMINA, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

[Signature Page — Parcel 3: Illumina Lease]

 

 

EXHIBIT A

ORIGINAL ILLUMINA LEASE PREMISES

TOWNE
CENTRE DRIVE

EXHIBIT A-1

 

EXHIBIT B

INTENTIONALLY OMITTED

EXHIBIT B-1

 

EXHIBIT C

PHASE 1 PREMISES

(to be attached by the parties on or before

Substantial Completion of the Landlord’s Construction Work}

EXHIBIT C-1

 

EXHIBIT D

PHASE 2 PREMISES

(to be attached by the parties on or before

Substantial Completion of the Landlord’s Construction Work}

EXHIBIT D-1

 

EXHIBIT E

PHASE 3 PREMISES 

(to be attached by the parties on or before

Substantial Completion of the Landlord’s Construction Work}

EXHIBIT E-1

 

EXHIBIT F

ACKNOWLEDGEMENT OF [PHASE 1][PHASE 2][PHASE 3]

COMMENCEMENT DATE AND EXPIRATION DATE

     THIS ACKNOWLEDGEMENT OF [PHASE 1][PHASE 2][PHASE 3] COMMENCEMENT DATE AND EXPIRATION DATE is
entered into as of [___], 20[___], with reference to that certain Lease (the “Lease”)
dated as of January 26, 2007, by Illumina, Inc., a Delaware corporation (“Tenant”), in
favor of BMR-9885 Towne Centre Drive LLC, a Delaware limited liability company
(“Landlord”). All capitalized terms used herein without definition shall have the meanings
ascribed to them in the Lease.

     Tenant hereby confirms the following:

	1.	 	Tenant accepted possession of the [Phase 1][Phase 2][Phase 3] Premises on [___], 20[___].
	 
	2.	 	The [Phase 1][Phase 2][Phase 3] Premises are in good order, condition and repair.
	 
	3.	 	Landlord’s Construction Work and the Tenant Improvements required to be constructed by
Landlord under the Lease have been substantially completed.
	 
	4.	 	All conditions of the Lease to be performed by Landlord as a condition to the full
effectiveness of the Lease have been satisfied, and Landlord has fulfilled all of its duties
in the nature of inducements offered to Tenant to lease the [Phase 1][Phase 2][Phase 3]
Premises.
	 
	5.	 	In accordance with the provisions of Section [5.2.2][5.2.3][5.2.4] of the Lease, the
[Phase 1][Phase 2][Phase 3] Commencement Date is [___], 20[___], and, unless the Lease is
terminated prior to the Expiration Date pursuant to its terms, the Expiration Date shall be
[___], 20[___].
	 
	6.	 	Tenant commenced occupancy of the [Phase 1][Phase 2][Phase 3] Premises for the Permitted Use
on [___], 20[___].
	 
	7.	 	The Lease is in full force and effect, and the same represents the entire agreement between
Landlord and Tenant concerning the [Phase 1][Phase 2][Phase 3] Premises [, except [___]].
	 
	8.	 	Tenant has no existing defenses against the enforcement of the Lease by Landlord, and there
exist no offsets or credits against Rent owed or to be owed by Tenant.
	 
	9.	 	The obligation to pay Rent is presently in effect and all Rent obligations on the part of
Tenant under the Lease commenced to accrue on [___], 20[___].
	 
	10.	 	The undersigned Tenant has not made any prior assignment, transfer, hypothecation or pledge
of the Lease or of the rents thereunder or sublease of the Premises or any portion thereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

EXHIBIT F-1

 

     IN WITNESS WHEREOF, Tenant has executed this Acknowledgment of [Phase 1][Phase 2][Phase 3]
Commencement Date and Expiration Date as of [___], 20[___].

	 	 	 	 	 
	ILLUMINA, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 
	 
	 	 	 	 
	BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

EXHIBIT F-2

 

EXHIBIT G

TENANT’S PERSONAL PROPERTY 

	1)	 	All Data Servers/Racks that are not mounted to the floor
	 
	2)	 	2 large UPS’s

	 	a)	 	1 in the A/2 Data Room
	 
	 	b)	 	1 in the A/1 Shipping area

	3)	 	RO/DI Water System
	 
	4)	 	Backup Generator
	 
	5)	 	Boardroom Electronics and Podium
	 
	6)	 	All Modular Furniture
	 
	7)	 	All Shelving/Racking
	 
	8)	 	Reagent Delivery System
	 
	9)	 	Caging Material
	 
	10)	 	All Equipment Specific to the Production Process of Illumina other than Fume Hoods and
Bio-Safety Cabinets

EXHIBIT G-1

 

EXHIBIT H

RULES AND REGULATIONS

     NOTHING IN THESE RULES AND REGULATIONS (“RULES AND REGULATIONS”) SHALL SUPPLANT ANY
PROVISION OF THE LEASE. IN THE EVENT OF A CONFLICT OR INCONSISTENCY BETWEEN THESE RULES AND
REGULATIONS AND THE LEASE, THE LEASE SHALL PREVAIL.

	1.	 	Except as specifically provided in the Lease to which these Rules and Regulations are
attached, no sign, placard, picture, advertisement, name or notice shall be installed or
displayed on any part of the outside of the Buildings or in the Common Areas without
Landlord’s prior written consent. Landlord shall have the right to remove, at Tenant’s sole
cost and expense and without notice, any sign installed or displayed in violation of this
rule.

	2.	 	If Landlord objects in writing to any curtains, blinds, shades, screens or hanging plants or
other similar objects attached to or used in connection with any window or door of the
Buildings or placed on any windowsill, which window, door or windowsill is (a) visible from
the exterior of the Buildings and (b) not included in plans approved by Landlord, then Tenant
shall promptly remove said curtains, blinds, shades, screens or hanging plants or other
similar objects at its sole cost and expense.

	3.	 	Tenant shall not obstruct any sidewalks or entrances to the Buildings, or any halls,
passages, exits, entrances or stairways within the Premises, in any case that are required to
be kept clear for health and safety reasons.

	4.	 	Tenant shall not place a load upon any floor of the Premises that exceeds the load per square
foot that (a) such floor was designed to carry or (b) that is allowed by Applicable Laws.

	5.	 	Tenant shall not use any method of heating or air conditioning other than that shown in the
Tenant Improvement plans.

	6.	 	Tenant shall not install any radio, television or other antenna, cell or other communications
equipment, or any other devices on the roof or exterior walls of the Buildings except to the
extent shown on approved Tenant Improvements plans or as otherwise provided in the Lease.
Tenant shall not interfere with radio, television or other communications from or in the
Buildings or elsewhere.

	7.	 	Canvassing, peddling, soliciting and distributing handbills or any other written material
within, on or around the Property is prohibited, and Tenant shall cooperate to prevent such
activities.

	8.	 	Tenant shall store all of its trash, garbage and Hazardous Materials within its Premises or
in designated receptacles outside of the Premises. Tenant shall not place in any such
receptacle any material that cannot be disposed of in the ordinary and customary manner of
trash, garbage and Hazardous Materials disposal.

	9.	 	The Property shall not be used for any unlawful or reasonably objectionable purposes. No
cooking shall be done or permitted on the Property; provided, however, that
Tenant may use (a) equipment approved in accordance with the requirements of insurance
policies that Landlord or Tenant is required to purchase and maintain pursuant to the Lease
for brewing coffee, tea, hot chocolate and similar beverages, (b) microwave ovens for
employees’ use and (c) equipment shown on Tenant Improvement plans approved by Landlord;
provided, further, that any such equipment and microwave ovens are used in accordance with
Applicable Laws.

	10.	 	Tenant shall not, without Landlord’s prior written consent, use the name of the Premises, if
any, in connection with or in promoting or advertising Tenant’s business except as Tenant’s
address.

	11.	 	Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any Governmental Authority.

EXHIBIT H-1

 

	12.	 	Tenant assumes any and all responsibility for protecting the Property from theft, robbery and
pilferage, which responsibility includes keeping doors locked and other means of entry to the
Premises closed.

	13.	 	Landlord may waive any one or more of these Rules and Regulations for the benefit of Tenant,
but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in
favor of Tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations
against Tenant.

	14.	 	These Rules and Regulations are in addition to, and shall not be construed to in any way
modify or amend, in whole or in part, the terms covenants, agreements and conditions of the
Lease.

	15.	 	Landlord reserves the right to make such other reasonable rules and regulations as, in its
judgment, may from time to time be needed for safety and security, the care and cleanliness of
the Property, or the preservation of good order therein; provided, however,
that Landlord shall provide written notice to Tenant of such rules and regulations prior to
them taking effect. Tenant agrees to abide by these Rules and Regulations and any additional
reasonable rules and regulations issued or adopted by Landlord.

	16.	 	Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or
Tenant’s Agents to be loaded, unloaded or parked in areas other than those designated by
Landlord for such activities. No vehicles are to be left in the parking areas overnight and
no vehicles are to be parked in the parking areas other than normally sized passenger
automobiles, motorcycles and pick-up trucks. No extended term storage of vehicles is
permitted. Landlord reserves the right, without cost or liability to Landlord, to tow any
vehicle if such vehicle’s audio theft alarm system remains engaged for an unreasonable period
of time. Washing, waxing, cleaning or servicing of any vehicle in any portion of the Property
is prohibited.

	17.	 	Tenant shall be responsible for the observance of these Rules and Regulations by Tenant’s
employees, agents, clients, customers, invitees and guests.

EXHIBIT H-2

 

EXHIBIT I

FORM OF ESTOPPEL CERTIFICATE

			
	To:	 	BMR-9885 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128

Attention: General Counsel/Real Estate

BioMed Realty, L.P.

c/o BioMed Realty Trust, Inc.

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128

Re: 9885 Towne Centre Drive (the “Premises”) at 9885 Towne Centre Drive, San Diego,
California (the “Property”)

     The undersigned tenant (“Tenant”) hereby certifies to you as follows:

1. Tenant is a tenant at the Property under a lease (the “Lease”) for the Premises dated as
of [                    ], 20[___]. The Lease has not been cancelled, modified, assigned, extended or amended
[except as follows: [                    ]], and there are no other agreements, written or oral, affecting or
relating to Tenant’s lease of the Premises or any other space at the Property. The lease term
expires on [                    ], 20[___].

2. Tenant took possession of the Premises, currently consisting of [                    ] square feet, on
[                    ], 20[___], and commenced to pay rent on [                    ], 20[___]. Tenant has full possession of
the Premises, has not assigned the Lease or sublet any part of the Premises, and does not hold the
Premises under an assignment or sublease[, except as follows: [                    ]].

3. All base rent, rent escalations and additional rent under the Lease have been paid through
[                    ], 20[___]. There is no prepaid rent[, except $[                    ]][, and the amount of security
deposit is $[                    ] [in cash][in the form of a letter of credit]]. Tenant currently has no right
to any future rent abatement under the Lease.

4. Base rent is currently payable in the amount of $[                    ] per month.

5. Tenant is currently paying estimated payments of additional rent of $[                    ] per month on
account of real estate taxes, insurance, management fees and common area maintenance expenses.

6. All work to be performed for Tenant under the Lease has been performed as required under the
Lease and has been accepted by Tenant[, except [                    ]], and all allowances to be paid to Tenant,
including allowances for tenant improvements, moving expenses or other items, have been paid.

7. The Lease is in full force and effect, free from default and free from any event that could
become a default under the Lease, and Tenant has no claims against the landlord or offsets or
defenses against rent, and there are no disputes with the landlord. Tenant has received no notice
of prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents payable
thereunder[, except [                    ]].

8. [Tenant has the following expansion rights or options for the Property: [                    ].][Tenant has
no rights or options to purchase the Property.]

9. To Tenant’s knowledge, no hazardous wastes have been generated, treated, stored or disposed of
by or on behalf of Tenant in, on or around the Property in violation of any environmental laws.

10. The undersigned has executed this Estoppel Certificate with the knowledge and understanding
that [INSERT NAME OF LANDLORD, PURCHASER OR LENDER, AS APPROPRIATE] or its assignee is acquiring
the Property in reliance on this certificate and that the undersigned shall be bound by this
certificate. The statements contained herein may be relied upon by [INSERT NAME OF PURCHASER OR
LENDER, AS APPROPRIATE],

EXHIBIT I-1

 

[LANDLORD], BioMed Realty, L.P., BioMed Realty Trust, Inc., and any mortgagee of the Property and
their respective successors and assigns.

     Any capitalized terms not defined herein shall have the respective meanings given in the
Lease.

Dated this [___] day of [                    ], 20[___].

[                    ],

a [                    ]

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

EXHIBIT I-2

 

EXHIBIT J

WORK LETTER

     This Work Letter (the “Work Letter”) is made and entered into as of the
26th day of January, 2007, by and between BMR-9885 Towne Centre Drive LLC, a Delaware
limited liability company (“Landlord”), and Illumina, Inc., a Delaware corporation
(“Tenant”), and is attached to and made a part of that certain Lease dated as of January
26, 2007 (the “Lease”), by and between Landlord and Tenant for the Premises located at 9885
Towne Centre Drive in San Diego, California. All capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Lease.

1. General Requirements.

     1.1 Tenant’s Authorized Representative. Tenant designates Jeff Hughson (“Tenant’s
Authorized Representative”) as the person authorized to initial all plans, drawings, changes
orders and approvals pursuant to this Work Letter. Landlord shall not be obligated to respond to
or act upon any such item until such item has been initialed by Tenant’s Authorized Representative.
Tenant may change Tenant’s Authorized Representative upon five (5) days’ prior written notice to
Landlord.

     1.2 Responsibility Matrix. Landlord and Tenant have approved that certain
Responsibility Matrix attached hereto as Exhibit A-1 (the “Responsibility Matrix”). The
Responsibility Matrix shall be determinative in allocating work between the Tenant Improvements and
the Landlord’s Construction Work.

     1.3 Landlord’s Construction Work. The schedule for the design and development of
Landlord’s Construction Work (as defined in the Lease), including, without limitation, the time
periods for preparation and review of construction documents, approvals and performance, shall be
in accordance with that certain schedule prepared by Landlord and Tenant attached as Exhibit A-2 to
this Work Letter (the “Landlord’s Construction Work Schedule”). The Landlord’s
Construction Work Schedule shall be subject to adjustment as mutually agreed upon in writing by the
parties, or as provided in this Work Letter.

     1.4 Landlord’s Construction Work: Architects and Consultants. The architect,
engineering consultants, design team, general contractor and subcontractors responsible for the
construction of Landlord’s Work (as defined below) shall be selected by Landlord and approved by
Tenant, which approval Tenant shall not unreasonably withhold, condition or delay. Tenant hereby
approves of Ferguson Pape Baldwin Architects as Landlord’s architect and Reno Contracting as
Landlord’s general contractor.

     1.5 Tenant Improvements: Architect. The architect responsible for the preparation of
the TI Program and the Schematic TI Plans shall be selected by Tenant and approved by Landlord,
which approval Landlord shall not unreasonably withhold, condition or delay. Landlord hereby
approves Ferguson Pape Baldwin Architects as Tenant’s architect.

2. Landlord’s Construction Work.

     2.1 Landlord’s Construction Work. Landlord’s Construction Work shall be performed by
Landlord at Landlord’s sole cost and expense in accordance with the Approved CW Plans (as defined
below), the outline specifications attached hereto as Exhibit B, and the Landlord’s Construction
Work Schedule, subject only to changes approved in accordance with Section 2.3.

     2.2 Approved CW Plans. Landlord shall prepare final plans and specifications for
Landlord’s Construction Work that are: (a) consistent with and are logical evolutions of the Design
Development Drawings dated December 5, 2006 and prepared by Ferguson Pape Baldwin, which have been
reasonably approved by Tenant, (b) incorporate CW Permitted Changes, and (c) incorporate any other
Landlord-requested (and Tenant approved) CW Changes. As soon as such final plans and
specifications (“Final CW Plans”) are completed, Landlord shall deliver the same to Tenant
for Tenant’s approval, which approval may be reasonably withheld only if: (i) the Final CW Plans
are not consistent with or logical evolutions of the approved Design Development Drawings, (ii)
Tenant requests changes to the Final CW Plans in

EXHIBIT J-1

 

accordance with Section 2.3(a)(i), or
(iii) Tenant objects to any Landlord requested CW Change
(other than CW Permitted Changes). Such Final CW Plans shall be approved or disapproved by
Tenant within seven (7) days after delivery to Tenant. If Tenant fails to respond within such
seven (7) days period, then Landlord shall provide Tenant with a second written notice stating that
“Tenant’s failure to respond within three (3) days after Landlord’s second notice shall be deemed
Tenant’s approval of the Final CW Plans,” and if Tenant does not respond within such three (3) day
period, then Tenant shall be deemed to have approved the Final CW Plans. If the Final CW Plans are
disapproved by Tenant, Tenant shall notify Landlord in writing of its objections to such Final CW
Plans and shall submit any requested CW Changes through a CW Tenant Change Order Request (as
defined below), then the parties shall confer and negotiate in good faith to reach agreement on the
Final CW Plans. Promptly after the Final CW Plans are approved by Landlord and Tenant, two (2)
copies of such Final CW Plans shall be initialed and dated by Landlord and Tenant as soon as
approved by Landlord and Tenant, Landlord shall promptly submit such Final CW Plans to all
appropriate governmental agencies for approval. The Final CW Plans so approved, and all change
orders specifically permitted by the Lease, are referred to herein as the “Approved CW
Plans” and shall become part of the Lease as though set forth in full.

     2.3 Changes to Landlord’s Construction Work. Any changes to the Final CW Plans or the
Approved CW Plans (each, a “CW Change”) requested by Landlord or Tenant (other than CW
Permitted Changes by Landlord) shall be requested and instituted in accordance with the provisions
of this Article 2 and shall be subject to the written approval of the other party in
accordance with this Work Letter.

          (a) CW Changes Requested by Tenant.

               (i) CW Tenant Change Order Request. Tenant may request CW Changes to the Final CW
Plans or the Approved CW Plans by notifying Landlord thereof in writing in substantially the same
form as the AIA standard change order form (a “CW Tenant Change Order Request”), which CW
Tenant Change Order Request shall detail the nature and extent of any requested CW Changes,
including, without limitation, (a) the CW Change, (b) the party required to perform the CW Change,
and (c) any modification of the Final CW Plans or the Approved CW Plans, as applicable, and the
Landlord’s Construction Work Schedule necessitated by the CW Change. If the nature of a CW Change
requires revisions to the Final CW Plans or the Approved CW Plans, as applicable, or the Landlord’s
Construction Work Schedule, then Tenant shall be solely responsible for the cost and expense of
such revisions. In the event Landlord approves such CW Change, Landlord shall: (1) notify Tenant
if it reasonably believes such CW Change could cause a delay in the Landlord’s Construction Work
Schedule; and (2) provide Landlord’s reasonable estimate of any additional costs and expenses
associated with such CW Change. Tenant shall deposit with Landlord the additional cost and expense
payable by Landlord, as reasonably estimated by Landlord, to complete the Construction Work due to
a Tenant-requested CW Change within ten (10) days of receiving Landlord’s approval of such CW
Change (the “CW Deposit”). In the event such deposit is not sufficient to cover the actual
cost of such approved CW Change, Tenant shall reimburse Landlord the difference between the actual
cost of such CW Change and the CW Deposit. Tenant shall have the right to apply the Additional
Allowance (as defined in the Lease) towards the CW Deposit. CW Tenant Change Order Requests shall
be signed by Tenant’s Authorized Representative.

               (ii) Landlord’s Approval of CW Changes. If Landlord does not notify Tenant in writing
of Landlord’s decision either to proceed with or abandon Tenant requested CW Change within ten (10)
days after receipt of a CW Tenant Change Order Request, then such CW Tenant Change Order Request
shall be deemed rejected by Landlord, and Tenant shall not be permitted to alter Landlord’s
Construction Work as contemplated by such CW Tenant Change Order Request. Landlord may withhold in
it sole and absolute discretion its approval of any CW Tenant Change Order Request;
provided, however, Landlord shall not unreasonably withhold its approval to any CW
Change requested by Tenant that is a CW Permitted Change or that could not reasonably be expected,
as reasonably determined by Landlord, to cause a Design Problem.

          (b) Changes Requested by Landlord.

               (i) CW Landlord Change Order Request. Landlord may request CW Changes to Landlord’s
Construction Work by notifying Tenant thereof in writing in substantially the same form as the AIA
standard change order form (a “CW Landlord Change Order

EXHIBIT J-2

 

Request”), which CW Landlord Change
Order Request shall detail the nature and extent of any
requested CW Changes, including, without limitation, (a) the CW Change, (b) the party required
to perform the CW Change, and (c) any modification of the Approved CW Plans and the Landlord’s
Construction Work Schedule necessitated by the CW Change.

               (ii) Tenant’s Approval of CW Change. Tenant shall have seven (7) days after receipt
of a CW Landlord Change Order Request to notify Landlord in writing of Tenant’s approval or
rejection of the Landlord-requested CW Change, which approval shall not be unreasonably withheld,
conditioned or delayed. If Tenant fails to respond within such seven (7) days period, then Landlord
shall provide Tenant with a second written notice stating that “Tenant’s failure to respond within
three (3) days after Landlord’s second notice shall be deemed Tenant’s approval to such CW Landlord
Change Order Request,” and if Tenant does not respond within such three (3) day period, then Tenant
shall be deemed to have approved such CW Landlord Change Order Request.

          (c) CW Permitted Changes. For purposes of this Work Letter, a “CW Permitted
Change” shall mean: (a) minor field changes; (b) changes required by Governmental
Authority; (c) any other changes that: (1) do not materially and adversely affect the building
structure, roof, or building service equipment to be constructed as part of Landlord’s Construction
Work, (2) do not materially change the size, cost, configuration, or overall appearance of the
Expansion Building or Landlord’s ability to construct Landlord’s Construction Work or Tenant’s
ability to operate its business in the Expansion Building, and (3) will not extend the Scheduled
Completion Date of Landlord’s Construction Work (as set forth in the Landlord’s Construction Work
Schedule) beyond October 1, 2008; and (d) ordinary development of the Approved CW Plans in a manner
not inconsistent with the Approved CW Plans.

3. Tenant Improvements.

     3.1 TI Program. The Tenant Improvements shall be performed by Landlord at Tenant’s
sole cost and expense and without cost to Landlord (except for the TI Allowance) and in accordance
with the Approved TI Plans (as defined below). On or before April 1, 2007, Tenant shall prepare
and submit to Landlord for Landlord’s approval a TI Program for the Tenant Improvements (the
“TI Program”). Landlord shall notify Tenant in writing within ten (10) business days after
receipt of the TI Program whether Landlord approves or rejects to the TI Program and of the manner,
if any, in which the TI Program is objectionable. If Landlord objects to the TI Program, then
Tenant shall revise the TI Program and cause Landlord’s permitted objections to be remedied in the
revised TI Program. Tenant shall then resubmit the revised Tenant Program to Landlord for approval
within ten (10) business days after Tenant receives Landlord’s comments on the TI Program.
Landlord shall not unreasonably withhold its approval of any iteration of the TI Program so long as
the TI Program does not include any Design Problem and the date when Landlord expects the Tenant
Improvements to be Substantially Completed (the “Expected TI Substantial Completion Date”)
based thereon is no later than October 1, 2008 (the “Target TI Substantial Completion
Date”). Landlord’s approval of or objection to the revised TI Program and Tenant’s correction
of the same shall be in accordance with this Section 3.1 until Landlord has approved the TI
Program in writing. Any delay in the final approval of the TI Program beyond June 1, 2007 shall be
a Tenant Delay except to the extent that Tenant demonstrates that such delay in the approval of the
TI Program resulted from Landlord’s failure to comply with the requirements of this Section
3.1. The iteration of the TI Program that is approved by Landlord without objection shall be
referred to herein as the “Approved TI Program”.

     3.2 Schematic TI Plans. Within thirty (30) business days after Landlord’s approval of
the Approved TI Program, Tenant shall prepare and submit to Landlord for approval schematics
covering the Tenant Improvements prepared in conformity with the Approved TI Program (the
“Schematic TI Plans”). The Schematic TI Plans shall contain sufficient information and
detail to accurately describe the proposed design to Landlord and such other information as
Landlord may reasonably request. Tenant shall be solely responsible for ensuring that the Approved
TI Program and the Schematic TI Plans satisfy Tenant’s business requirements. Subject to
Section 3.4(a)(ii), Landlord shall notify Tenant in writing within ten (10) business days
after receipt of the Schematic TI Plans whether Landlord approves or objects to the Schematic TI
Plans and of the manner, if any, in which the Schematic TI Plans are objectionable. If Landlord
objects to the Schematic TI Plans, then Tenant shall revise the Schematic TI Plans and cause
Landlord’s reasonable objections to be remedied in the revised Schematic TI Plans. Tenant shall
then

EXHIBIT J-3

 

resubmit the revised Schematic TI Plans to Landlord for approval within ten (10) business days
after Tenant received Landlord’s comments to the Schematic TI Plans. Landlord’s approval of
or objection to revised Schematic TI Plans and Tenant’s correction of the same shall be in
accordance with this Section 3.2, until Landlord has approved the Schematic TI Plans in
writing. Landlord shall not unreasonably withhold its approval of any iteration of the Schematic
TI Plans so long as such iteration of such Schematic TI Plans do not include any Design Problem,
are consistent with the Approved TI Program and the Expected TI Substantial Completion Date is not
later than the Target TI Substantial Completion Date. Any delay in the final approval of the
Schematic TI Plans beyond the day that is thirty (30) days after Landlord approves the TI Program
shall be a Tenant Delay except to the extent that Tenant demonstrates that such delay in the
approval of the Schematic TI Plans resulted from Landlord’s failure to comply with the requirements
of this Section 3.2. The iteration of the Schematic TI Plans that is approved by Landlord
without objection shall be referred to herein as the “Approved Schematic TI Plans.”

     3.3 Construction TI Plans. Landlord shall prepare final plans and specifications for
the Tenant Improvements that: (a) are consistent with and are logical evolutions of the Approved
Schematic TI Plans, (b) incorporate TI Permitted Changes, and (c) incorporate any other
Landlord-requested (and Tenant approved) TI Changes. As soon as such final plans and
specifications (“Construction TI Plans”) are completed, Landlord shall deliver the same to
Tenant for Tenant’s approval, which approval may be reasonably withheld only if: (i) the
Construction TI Plans are not consistent with or logical evolutions of the Approved Schematic TI
Plans, (ii) Tenant intends to request changes to the Construction TI Plans in accordance with
Section 3.4(a)(i), or (iii) Tenant objects to any Landlord requested TI Change (other than
TI Permitted Changes). Such Construction TI Plans shall be approved or disapproved by Tenant
within seven (7) business days after delivery to Tenant. If Tenant fails to notify Landlord of
disapproval within such seven (7) days period, then Landlord shall provide Tenant with a second
written notice stating that “Tenant’s failure to respond within three (3) days after Landlord’s
second notice shall be deemed Tenant’s approval to such Construction TI Plans,” and if Tenant does
not respond within such three (3) day period, then Tenant shall be deemed to have approved such
Construction TI Plans. If the Construction TI Plans are disapproved by Tenant, Tenant shall notify
Landlord in writing of its objections to such Construction TI Plans and shall submit any requested
TI Changes through a TI Tenant Change Order Request (as defined below), then the parties shall
confer and negotiate in good faith to reach agreement on the Construction TI Plans. Promptly after
the Construction TI Plans are approved by Landlord and Tenant, two (2) copies of such Construction
TI Plans shall be initialed and dated by Landlord and Tenant as soon as approved by Landlord and
Tenant, Landlord shall promptly submit such Construction TI Plans to all appropriate governmental
agencies for approval. The Construction TI Plans so approved, and all change orders specifically
permitted by the Lease, are referred to herein as the “Approved TI Plans” and shall become
part of the Lease as though set forth in full.

     3.4 Changes to Tenant Improvements. Any changes to the Construction TI Plans or the
Approved TI Plans (each, a “TI Change”) requested by Landlord or Tenant (other than TI
Permitted Changes by Landlord) shall be requested and instituted in accordance with the provisions
of this Article 3 and shall be subject to the written approval of the other party in
accordance with this Work Letter.

          (a) TI Changes Requested by Tenant.

               (i) TI Tenant Change Order Request. Tenant may request TI Changes after Tenant
approves the Construction TI Plans or the Approved TI Plans, as applicable, by notifying Landlord
thereof in writing in substantially the same form as the AIA standard change order form (a “TI
Tenant Change Order Request”), which TI Tenant Change Order Request shall detail the nature and
extent of any requested TI Changes, including, without limitation, (a) the TI Change, (b) the party
required to perform the TI Change, and (c) any modification of the Construction TI Plans or the
Approved TI Plans, as applicable. If the nature of a TI Change requires revisions to the
Construction TI Plans or the Approved TI Plans, as applicable, then Tenant shall be solely
responsible for the cost and expense of such revisions. In the event Landlord approves such TI
Change, Landlord shall: (1) notify Tenant if it reasonably believes such TI Change could cause a
delay in Substantial Completion of the Tenant Improvements; and (2) provide Landlord’s reasonable
estimate of any additional costs and expenses associated with such TI Change. Tenant shall
reimburse Landlord the additional cost and expense payable by Landlord, as reasonably estimated by
Landlord, to complete the Tenant Improvements due to a Tenant-requested TI Change as “Excess Costs”
in accordance with Section 4.2.2 of the Lease.

EXHIBIT J-4

 

               (ii) Landlord’s Approval of TI Changes. All Tenant-requested TI Changes shall be
subject to Landlord’s prior written approval, which shall not be unreasonably withheld, conditioned
or delayed so long as such TI Change would not create a Design Problem and would not delay
Substantial Completion of the Tenant Improvements beyond the Target TI Substantial Completion Date.
Landlord shall have ten (10) days after receipt of a TI Tenant Change Order Request to notify
Tenant in writing of Landlord’s decision either to proceed with or abandon Tenant-requested TI
Change. If Landlord does not approve in writing a TI Tenant Change Order Request, then such TI
Tenant Change Order Request shall be deemed rejected by Landlord, and Tenant shall not be permitted
to alter Tenant Improvements as contemplated by such TI Tenant Change Order Request.

          (b) TI Changes Requested by Landlord.

               (i) TI Landlord Change Order Request. Other than TI Permitted Changes, Landlord may
request TI Changes after Tenant approves the Approved TI Plans by notifying Tenant thereof in
writing in substantially the same form as the AIA standard change order form (a “TI Landlord
Change Order Request”), which TI Landlord Change Order Request shall detail the nature and
extent of any requested TI Changes, including, without limitation, (a) the TI Change, (b) the party
required to perform the TI Change, and (c) any modification of the Approved TI Plans, or any delay
in the Expected TI Substantial Completion Date, necessitated by the TI Change. If the nature of a
Landlord requested TI Change requires revisions to the Construction TI Plans or the Approved TI
Plans, then Landlord shall be solely responsible for the cost and expense of such revisions (and
such cost shall not be deducted from the TI Allowance).

               (ii) Tenant’s Approval of TI Change. Tenant shall have seven (7) days after receipt
of a TI Landlord Change Order Request to notify Landlord in writing of Tenant’s approval or
rejection of the Landlord-requested TI Change, which approval shall not be unreasonably withheld,
conditioned or delayed. If Tenant fails to respond within such seven (7) days period, then
Landlord shall provide Tenant with a second written notice stating “that Tenant’s failure to
respond within three (3) days after Landlord’s second notice shall be deemed Tenant’s approval to
such Landlord-requested TI Change,” and if Tenant does not respond within such three (3) day
period, then Tenant shall be deemed to have approved such Landlord-requested TI Change.

          (c) TI Permitted Changes. For purposes of this Work Letter, a “TI Permitted
Change” shall mean: (a) minor field changes; (b) changes required by Governmental Authority;
(c) any other changes that: (1) do not materially and adversely affect the building structure,
roof, or building service equipment to be constructed as part of the Tenant Improvements, (2) do
not materially change the size, cost, configuration, or overall appearance of the Tenant
Improvements or Tenant’s ability to operate its business in the Expansion Building, and (3) will
not extend the Expected TI Substantial Completion Date beyond October 1, 2008; and (d) ordinary
development of the Approved TI Plans in a manner not inconsistent with the Approved TI Plans.

     3.5 TI Allowance.

          (a) Application of TI Allowance. Landlord shall contribute the TI Allowance toward
the costs and expenses incurred in connection with the performance of the Tenant Improvements, in
accordance with Section 4.2 of the Lease. If the entire TI Allowance is not applied toward
or reserved for the costs of the Tenant Improvements, Tenant shall not be entitled to a
credit of such unused portion of the TI Allowance.

          (b) Approval of Budget for Landlord’s Work. Notwithstanding anything to the contrary
set forth elsewhere in this Work Letter or the Lease, Landlord shall not have any obligation to
expend any portion of the TI Allowance until Landlord and Tenant shall have approved in writing the
budget for the Tenant Improvements (the “Approved Budget”). Prior to Landlord’s and
Tenant’s approval of the Approved Budget, Tenant shall pay all of the costs and expenses incurred
in connection with Tenant Improvements as they become due. Landlord shall not be obligated to
reimburse Tenant for costs or expenses relating to Tenant Improvements that exceed either (a) the
amount of the TI Allowance (other than pursuant to Section 4.3 of the Lease pertaining to
the Additional Allowance) or (b) the Approved Budget, either on a line item or on

EXHIBIT J-5

 

an overall basis.
Tenant’s payment to Landlord of any such excess costs shall be paid as “Excess Costs” in
accordance with Section 4.2.2 of the Lease

          (c) Application of the TI Allowance. Tenant may apply the TI Allowance for the
payment of construction and other costs (including, without limitation, standard laboratory
improvements; finishes; building fixtures; building permits; and architectural, engineering, design
and consulting fees), in each case as reflected in the Approved Budget and the Approved TI Plans.
In no event shall the TI Allowance be applied to: (i) the purchase of any furniture, personal
property or other non-building system equipment; (ii) the cost of work that is not authorized by
the Approved TI Plans or approved in writing by Landlord, (iii) costs resulting from any default by
Tenant of its obligations under the Lease, or (iv) costs that are recoverable or reasonably
recoverable by Tenant from a third party (e.g., insurers, warrantors, or tortfeasors).

4. Requests for Consent. Except as otherwise provided in this Work Letter, Tenant shall
respond to all requests for consents, approvals or directions made by Landlord pursuant to this
Work Letter within seven (7) days following Tenant’s receipt of such request. If Tenant fails to
respond within such seven (7) days period, then Landlord shall provide Tenant with a second written
notice stating that “Tenant’s failure to respond within three (3) days after Landlord’s second
notice shall be deemed approval by Tenant,” and if Tenant does not respond within such three (3)
day period, then Tenant shall be deemed to have approved such item.

5. Cost Proposal. After the Approved TI Plans are approved by Landlord and Tenant, and the
Contractor and subcontractors have been selected, Landlord shall provide Tenant with a cost
proposal setting forth the reconciled bids and copies of all sub-bids, which cost proposal shall
include, as nearly as possible, the cost of all items to be incurred in connection with the
construction of the Tenant Improvements (the “Cost Proposal”). The Cost Proposal shall
reflect bids that will be priced by Contractor on an individual item-by-item or trade-by-trade
basis. Tenant shall accept or reject the Cost Proposal within ten (10) business days after receipt
thereof. If Tenant rejects the Cost Proposal, then Landlord and Tenant shall work together in good
faith in an attempt to agree upon a mutually acceptable Cost Proposal as soon as reasonably
practicable, and a Tenant Delay shall be deemed to exist for a number of days equal to the number
of days elapsed from Tenant’s rejection of the Cost Proposal until Tenant’s and Landlord’s
agreement to a mutually acceptable Cost Proposal.

6. Completion of Landlord’s Work. Landlord shall complete Landlord’s Construction Work and
the Tenant Improvements (collectively the “Landlord’s Work”) described in this Work Letter
in all respects in accordance with the provisions of the Lease and this Work Letter. Landlord’s
Work shall be deemed completed at such time as Landlord shall furnish to Tenant (a) evidence that
all Landlord’s Work has been completed and paid for in full (which shall be evidenced by the
architect’s certificate of completion), (b) all certifications and approvals with respect to
Landlord’s Work that may be required from any Governmental Authority and any board of fire
underwriters or similar body for the use and occupancy of the Expansion Premises and (c) an
affidavit from Landlord’s architect certifying that all work performed in, on or about the
Expansion Premises is in accordance with the Approved TI Plans.

7. Miscellaneous.

     7.1 Headings, Etc. Where applicable in this Work Letter, the singular includes the
plural and the masculine or neuter includes the masculine, feminine and neuter. The Section
headings of this Work Letter are not a part of this Work Letter and shall have no effect upon the
construction or interpretation of any part hereof.

     7.2 Time of the Essence. Time is of the essence with respect to the performance of
every provision of this Work Letter in which time of performance is a factor.

     7.3 Covenants. Each provision of this Work Letter performable by Landlord or Tenant
shall be deemed both a covenant and a condition.

     7.4 Consent. Whenever consent or approval of either party is required, that party
shall not unreasonably withhold, condition or delay such consent or approval, except as may be
expressly set forth to the contrary.

EXHIBIT J-6

 

     7.5 Entire Agreement. The terms of this Work Letter are intended by the parties as a
final expression of their agreement with respect to the terms as are included herein, and may not
be contradicted by evidence of any prior or contemporaneous agreement, other than the Lease.

     7.6 Invalid Provisions. Any provision of this Work Letter that shall prove to be
invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof,
and all other provisions of this Work Letter shall remain in full force and effect and shall be
interpreted as if the invalid, void or illegal provision did not exist.

     7.7 Construction. The language in all parts of this Work Letter shall be in all cases
construed as a whole according to its fair meaning and not strictly for or against either Landlord
or Tenant.

     7.8 Assigns. Each of the covenants, conditions and agreements herein contained shall
inure to the benefit of and shall apply to and be binding upon the parties hereto and their
respective heirs; legatees; devisees; executors; administrators; and permitted successors, assigns,
sublessees. Nothing in this Section 6.8 shall in any way alter the provisions of the Lease
restricting assignment or subletting.

     7.9 Authority. That individual or those individuals signing this Work Letter
guarantee, warrant and represent that said individual or individuals have the power, authority and
legal capacity to sign this Work Letter on behalf of and to bind all entities, corporations,
partnerships, limited liability companies, joint venturers or other organizations and entities on
whose behalf said individual or individuals have signed.

     7.10 Counterparts. This Work Letter may be executed in one or more counterparts, each
of which, when taken together, shall constitute one and the same document.

     7.11 Notice of Completion. Within ten (10) days after completion of construction of
the Tenant Improvements, Landlord shall cause a Notice of Completion to be recorded in the office
of the Recorder of the County in which the Expansion Building is located and shall furnish a copy
thereof to Tenant upon such recordation.

     7.12 No Fee to Landlord. Except as otherwise provided in the Lease, Landlord shall
receive no fee for supervision, profit, over overhead in connection with the Landlord’s
Construction Work or Tenant Improvement work. In no event shall this Section 7.12 limit
the fees that are payable to the architect, engineering consultants, design team, general
contractor and subcontractors.

     7.13 Staging Area. During the period prior to the Commencement Date, Tenant shall
have the right, without the obligation to pay Rent, to use empty space in the Expansion Building
(if any), as designated by Landlord, in its sole and absolute discretion, for the purposes of
storing and staging its furniture and equipment only. With respect to this free storage space, if
any, Tenant shall be responsible for providing all insurance and for providing any necessary
fencing or other protective facilities. Tenant shall hold Landlord harmless and shall indemnify
and defend Landlord from and against any and all Claims arising out of or in connection with the
use of such storage space by Tenant. Tenant shall be obligated to remove all of the stored
materials and its fencing and other facilities within five (5) business days after Tenant’s receipt
of written notice from Landlord stating that such staging area is needed by Landlord in which event
comparable vacant space, to the extent such space is available (as determined by Landlord in its
sole and absolute discretion), shall be made available to Tenant as a substitute staging area.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

EXHIBIT J-7

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Work Letter to be effective on the
date first above written.

	 	 	 	 	 
	LANDLORD:	 	 
	 
	 	 	 	 
	BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	ILLUMINA, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

EXHIBIT J-8

 

EXHIBIT A-1

RESPONSIBILITY MATRIX

			
	 	 	 
	BMR — Towne Centre Drive, LLC	 	 
	Scope Allocation Matrix- Base building vs. Tenant Work	 	 
	Illumina
	 	1/22/2007

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Constructed by
	 	 	 	 	 	 	 	 	 	 	Owner during
	 	 	 	 	 	 	Constructed	 	Base Building
	 	 	Included in	 	by Tenant,	 	construction,
	 	 	Shell / Base	 	funded by TI	 	funded by TI
	 	 	Building by	 	Allowance(s)	 	Allowance(s)
	Description	 	Owner	 	as needed	 	as needed
	Site work
	 	 	 	 	 	 	 	 	 	 	 	 
	Sidewalks and Curbs
	 	 	X	 	 	 	 	 	 	 	 	 
	Pedestrian paved areas (San Diego Buff at main entry plaza and link to buildings A&B)
	 	 	X	 	 	 	 	 	 	 	 	 
	Landscaping
	 	 	X	 	 	 	 	 	 	 	 	 
	Parking and Roads
	 	 	X	 	 	 	 	 	 	 	 	 
	Ground floor parking garage
	 	 	X	 	 	 	 	 	 	 	 	 
	Subterranean parking garage
	 	 	X	 	 	 	 	 	 	 	 	 
	Parking garage, security gates and security systems
	 	 	 	 	 	 	 	 	 	 	X	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Code Compliance
	 	 	 	 	 	 	 	 	 	 	 	 
	Base building construction in accordance w/ req of the City of San Diego building codes
	 	 	X	 	 	 	 	 	 	 	 	 
	Building Led Components
	 	 	 	 	 	 	X	 	 	 	 	 
	Tenant build out compliance w/ applicable codes @ the time of fit-up
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Structure
	 	 	 	 	 	 	 	 	 	 	 	 
	Concrete floor stabs over metal deck, typical live load capacity pf 100 psf,
	 	 	X	 	 	 	 	 	 	 	 	 
	a predetermined of 2 structural bays upgradeable to a capacity of 125 psf,
	 	 	 	 	 	 	X	 	 	 	 	 
	including a 20 psf partition allowance
	 	 	X	 	 	 	 	 	 	 	 	 
	Live load increases for tenant loads
	 	 	 	 	 	 	X	 	 	 	 	 
	Floor to floor heights: 16’-0” (excluding garage levels)
	 	 	X	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Steel framing w/ diagonal bracing & composite steel & concrete floors & roofs,
	 	 	X	 	 	 	 	 	 	 	 	 
	fireproofed as required by code
	 	 	X	 	 	 	 	 	 	 	 	 
	Mechanical screen at roof level
	 	 	X	 	 	 	 	 	 	 	 	 
	Stub-up columns for structural supports for tenant supplied equipment (not included in base
building)
	 	 	 	 	 	 	X	 	 	 	 	 
	Structural support above roof for Tenant equipment
	 	 	 	 	 	 	X	 	 	 	 	 
	Grate walkways on structural support (not included in base building)
	 	 	 	 	 	 	X	 	 	 	 	 
	Misc metal items (lintels, elevator angles, etc.) related to base building construction
	 	 	X	 	 	 	 	 	 	 	 	 
	Misc metal items & concrete pads & structural modifications related to tenant fit-out
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Exterior
	 	 	 	 	 	 	 	 	 	 	 	 
	Exterior wall assembly (Cement plaster over metal frame construction, storefront type window
wall systems and stone accents)
	 	 	X	 	 	 	 	 	 	 	 	 
	Insulation & Vapor barrier @ spandrel areas of exterior walls
	 	 	X	 	 	 	 	 	 	 	 	 
	Service door consisting of metal coiling doors, electricity operated
	 	 	 	 	 	 	 	 	 	 	X	 
	On grade service drive
	 	 	X	 	 	 	 	 	 	 	 	 
	Loading Dock below grade with electric dock leveler
	 	 	 	 	 	 	 	 	 	 	X	 
	Entry Canopy in general compliance and appearance as shown on the approved architectural
renderings
	 	 	X	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Roofing
	 	 	 	 	 	 	 	 	 	 	 	 
	Weather tight membrane roofing system (3 ply plus a cap sheet built-up roofing system)
	 	 	X	 	 	 	 	 	 	 	 	 
	Walkway pads to base building mechanical equipment
	 	 	X	 	 	 	 	 	 	 	 	 
	Walkway pads to tenant mechanical equipment
	 	 	 	 	 	 	X	 	 	 	 	 

EXHIBIT J-9

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Constructed by
	 	 	 	 	 	 	 	 	 	 	Owner during
	 	 	 	 	 	 	Constructed	 	Base Building
	 	 	Included in	 	by Tenant,	 	construction,
	 	 	Shell / Base	 	funded by TI	 	funded by TI
	 	 	Building by	 	Allowance(s)	 	Allowance(s)
	Description	 	Owner	 	as needed	 	as needed
	Common Areas
	 	 	 	 	 	 	 	 	 	 	 	 
	Accessible main entrance
	 	 	X	 	 	 	 	 	 	 	 	 
	First floor lobby framing and fire taped sheetrock
	 	 	X	 	 	 	 	 	 	 	 	 
	Typical floor lobbies and elevator entrances for single tenant floors
	 	 	 	 	 	 	X	 	 	 	 	 
	Finished toilet rooms — core areas only
	 	 	 	 	 	 	 	 	 	 	X	 
	Base building electrical room
	 	 	X	 	 	 	 	 	 	 	 	 
	Finished exit stairways w/ painted walls & sealed concrete floors
	 	 	X	 	 	 	 	 	 	 	 	 
	Main telephone room @ Level 1
	 	 	X	 	 	 	 	 	 	 	 	 
	Ships ladder roof access with 3'x5'
	 	 	 	 	 	 	 	 	 	 	X	 
	Doors and frames @ common areas:
	 	 	X	 	 	 	 	 	 	 	 	 
	Hollow metal frames
	 	 	X	 	 	 	 	 	 	 	 	 
	Hollow metal doors @ service areas
	 	 	X	 	 	 	 	 	 	 	 	 
	Solid core wood doors @ other areas
	 	 	X	 	 	 	 	 	 	 	 	 
	Lever hardware @ common areas
	 	 	X	 	 	 	 	 	 	 	 	 
	Doors and frames w/in tenant areas & @ entry off elevator lobby
	 	 	 	 	 	 	X	 	 	 	 	 
	Enclosed area for standby generators
	 	 	 	 	 	 	X	 	 	 	 	 
	Tenant toilet rooms & kitchen in tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Finished loading area w/ truck and trash bays
	 	 	X	 	 	 	 	 	 	 	 	 
	Area for storage @ ground floor level
	 	 	X	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Elevators
	 	 	 	 	 	 	 	 	 	 	 	 
	Provisions for 3 building elevators (2 passenger, 1 service elevator)
	 	 	X	 	 	 	 	 	 	 	 	 
	4 Stop passenger elevator at main entry with allowance for cab finish
	 	 	X	 	 	 	 	 	 	 	 	 
	4 stop passenger elevator at west entry
	 	 	 	 	 	 	X	 	 	 	 	 
	3 stop service elevator at East entrance
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Window Treatment
	 	 	 	 	 	 	 	 	 	 	 	 
	Building standard blinds @ at windows
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tenant Areas
	 	 	 	 	 	 	 	 	 	 	 	 
	Drywall, insulation and stud back up @ inside face of exterior walls
	 	 	 	 	 	 	X	 	 	 	 	 
	Drywall on tenant side of base building rooms and shafts fire taped and finished
	 	 	 	 	 	 	X	 	 	 	 	 
	Shaft enclosures for tenant use
	 	 	 	 	 	 	X	 	 	 	 	 
	Column enclosures w/in tenant spaces
	 	 	 	 	 	 	X	 	 	 	 	 
	Partitions, ceilings, floorings, painting, finishes, doors, millwork and all office,
laboratory, and animal space build-out w/in tenant area
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment
	 	 	 	 	 	 	 	 	 	 	 	 
	Tenant Equipment
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Fire Protection
	 	 	 	 	 	 	 	 	 	 	 	 
	Combination sprinkler/standpipe system w/ fire department valves
	 	 	X	 	 	 	 	 	 	 	 	 
	Fire service and double check valve assembly
	 	 	X	 	 	 	 	 	 	 	 	 
	Alarm check valve and fire dept connection
	 	 	X	 	 	 	 	 	 	 	 	 
	Floor control valve assemblies and test drains
	 	 	X	 	 	 	 	 	 	 	 	 
	Sprinkler coverage to all core areas
	 	 	X	 	 	 	 	 	 	 	 	 
	Branch distribution to all open shell space
	 	 	X	 	 	 	 	 	 	 	 	 
	Modifications to branch distribution in tenant area
	 	 	 	 	 	 	X	 	 	 	 	 
	Secondary fire suppression systems
	 	 	 	 	 	 	X	 	 	 	 	 
	Flow switches, tamper switches, pressure switches
	 	 	X	 	 	 	 	 	 	 	 	 
	Modification of sprinkler piping and head layout to suit tenant build-out and hazard index
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Plumbing
	 	 	 	 	 	 	 	 	 	 	 	 
	below grade sanitary waste system and risers to cap 4” above ground floor FF
	 	 	X	 	 	 	 	 	 	 	 	 
	Sanitary waste system distribution to tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Potable water from meter to core area. Cap 4” above ground finish floor.
	 	 	X	 	 	 	 	 	 	 	 	 
	Backflow preventors at entrance
	 	 	X	 	 	 	 	 	 	 	 	 
	Water provided at city pressure
	 	 	X	 	 	 	 	 	 	 	 	 
	Domestic water heaters and hot water supply piping
	 	 	 	 	 	 	X	 	 	 	 	 
	Non Potable cold water system, back flow devices and risers
	 	 	X	 	 	 	 	 	 	 	 	 

EXHIBIT J-10

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Constructed by
	 	 	 	 	 	 	 	 	 	 	Owner during
	 	 	 	 	 	 	Constructed	 	Base Building
	 	 	Included in	 	by Tenant,	 	construction,
	 	 	Shell / Base	 	funded by TI	 	funded by TI
	 	 	Building by	 	Allowance(s)	 	Allowance(s)
	Description	 	Owner	 	as needed	 	as needed
	Gas
	 	 	 	 	 	 	 	 	 	 	 	 
	Gas service to the building
	 	 	X	 	 	 	 	 	 	 	 	 
	Gas main to the roof for base building requirements
	 	 	X	 	 	 	 	 	 	 	 	 
	Gas distribution for base building systems
	 	 	X	 	 	 	 	 	 	 	 	 
	Low-pressure gas riser for tenant use
	 	 	 	 	 	 	X	 	 	 	 	 
	Low-pressure gas distribution to tenant requirements
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	H.V.A.C
	 	 	 	 	 	 	 	 	 	 	 	 
	Air handling units with capacity for 60% lab and 40% office at 288SF/ton at Labs and 400SF/ton
at Office. Average building coverage of 325SF/ton of occupied space.
	 	 	X	 	 	 	 	 	 	 	 	 
	Exhaust for common areas per code
	 	 	X	 	 	 	 	 	 	 	 	 
	Exhaust for subterranean parking garage
	 	 	X	 	 	 	 	 	 	 	 	 
	Exhaust capacity for office and lab
	 	 	 	 	 	 	X	 	 	 	 	 
	Supply and exhaust duct risers for additional tenant systems
	 	 	 	 	 	 	X	 	 	 	 	 
	Vertical distribution of supply and return air systems
	 	 	 	 	 	 	 	 	 	 	X	 
	Supply and exhaust system, including ductwork, control boxes, grilles, registers, and diffusers
in tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Boilers (in support of HVAC system described above)
	 	 	X	 	 	 	 	 	 	 	 	 
	Automatic temperature control system for base building systems
	 	 	X	 	 	 	 	 	 	 	 	 
	Automatic temperature control system for tenant areas and systems
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Electrical
	 	 	 	 	 	 	 	 	 	 	 	 
	Main electrical service @ 4000 amps
	 	 	X	 	 	 	 	 	 	 	 	 
	Distribution to tenant spaces and equip
	 	 	 	 	 	 	X	 	 	 	 	 
	Optional standby generators and feeders to distribution panels for tenant use
	 	 	 	 	 	 	X	 	 	 	 	 
	Electric closest at first floor for base building systems
	 	 	X	 	 	 	 	 	 	 	 	 
	Additional electric closets for tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Power distribution for tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Fire alarm systems and risers
	 	 	X	 	 	 	 	 	 	 	 	 
	Fire alarm devises in tenant spaces
	 	 	 	 	 	 	X	 	 	 	 	 
	Lighting in common and base building areas
	 	 	X	 	 	 	 	 	 	 	 	 
	Lighting in tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Lighting protection system for base building systems
	 	 	X	 	 	 	 	 	 	 	 	 
	Empty telephone/data conduits into building main room
	 	 	X	 	 	 	 	 	 	 	 	 
	Telephone/data system, including service, risers, wiring, closets, and distribution
	 	 	 	 	 	 	X	 	 	 	 	 
	Lighting protection system for tenant systems
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Security
	 	 	 	 	 	 	 	 	 	 	 	 
	Card access at bldg entries and w/in elevators
	 	 	 	 	 	 	X	 	 	 	 	 
	Card access and/or alarm systems into or w/in Tenant areas
	 	 	 	 	 	 	X	 	 	 	 	 
	Security system for base bldg area
	 	 	 	 	 	 	X	 	 	 	 	 
	Security system for tenant areas. Tenant systems need to be coordinated w/ the base bldg system
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Acoustical
	 	 	 	 	 	 	 	 	 	 	 	 
	Acoustical sound attenuation and isolation of base bldg systems
	 	 	X	 	 	 	 	 	 	 	 	 
	Acoustical sound attenuation and isolation of tenant systems
	 	 	 	 	 	 	X	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 
	Cable TV conduit into Building Main Service Room
	 	 	 	 	 	 	X	 	 	 	 	 
	Cable TV service
	 	 	 	 	 	 	X	 	 	 	 	 

EXHIBIT J-11

 

EXHIBIT A-2

LANDLORD’S CONSTRUCTION WORK SCHEDULE

EXHIBIT J-12

 

EXHIBIT J-13

 

EXHIBIT J-14

 

EXHIBIT B

OUTLINE SPECIFICATIONS

(See Attached)

EXHIBIT J-15

 

EXHIBIT K

FORM OF LETTER OF CREDIT

[On letterhead or L/C letterhead of Issuer.]

LETTER OF CREDIT

Date:                     , 200___

	 	 	 	 	 
	 

	 	 	 	(the “Beneficiary”)
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attention:
	 	 	 	 
	 

	 	 	 	 
	L/C. No.:
	 	 	 	 
	 

	 	 	 	 
	Loan No.:
	 	 	 	 
	 

	 	 	 	 

Ladies and Gentlemen:

     We establish in favor of Beneficiary our irrevocable and unconditional Letter of Credit
numbered as identified above (the “L/C”) for an aggregate amount of $                    , expiring at
___:00 p.m. on                      or, if such day is not a Banking Day, then the next succeeding Banking Day
(such date, as extended from time to time, the “Expiry Date”). “Banking Day” means
a weekday except a weekday when commercial banks in                      are authorized or required to
close.

     We authorize Beneficiary to draw on us (the “Issuer”) for the account of                      (the
“Account Party”), under the terms and conditions of this L/C.

     Funds under this L/C are available by presenting the following documentation (the “Drawing
Documentation”): (a) the original L/C and (b) a sight draft substantially in the form of
Exhibit A, with blanks filled in and bracketed items provided as appropriate. No other evidence of
authority, certificate, or documentation is required.

     Drawing Documentation must be presented at Issuer’s office at                      on or before the
Expiry Date by personal presentation, courier or messenger service, or fax. Presentation by fax
shall be effective upon electronic confirmation of transmission as evidenced by a printed report
from the sender’s fax machine. After any fax presentation, but not as a condition to its
effectiveness, Beneficiary shall with reasonable promptness deliver the original Drawing
Documentation by any other means. Issuer will on request issue a receipt for Drawing
Documentation.

     We agree, irrevocably, and irrespective of any claim by any other person, to honor drafts
drawn under and in conformity with this L/C, within the maximum amount of this L/C, presented to us
on or before the Expiry Date, provided we also receive (on or before the Expiry Date) any other
Drawing Documentation this L/C requires.

     We shall pay this L/C only from our own funds by check or wire transfer, in compliance with
the Drawing Documentation.

     If Beneficiary presents proper Drawing Documentation to us on or before the Expiry Date, then
we shall pay under this L/C at or before the following time (the “Payment Deadline”): (a)
if presentment is made at or before noon of any Banking Day, then the close of such Banking Day;
and (b) otherwise, the close of the next Banking Day. We waive any right to delay payment beyond
the Payment Deadline. If we determine that Drawing Documentation is not proper, then we shall so
advise Beneficiary in writing, specifying all grounds for our determination, within one Banking Day
after the Payment Deadline.

     Partial drawings are permitted. This L/C shall, except to the extent reduced thereby, survive
any partial drawings.

     We shall have no duty or right to inquire into the validity of or basis for any draw under
this L/C or any Drawing Documentation. We waive any defense based on fraud or any claim of fraud.

EXHIBIT K-1

 

     The
Expiry Date shall automatically be extended by one year (but never beyond ___ the
“Outside Date”) unless, on or before the date thirty (30) days before any Expiry Date, we
have given Beneficiary notice that the Expiry Date shall not be so extended (a “Nonrenewal
Notice”). We shall promptly upon request confirm any extension of the Expiry Date under the
preceding sentence by issuing an amendment to this L/C, but such an amendment is not required for
the extension to be effective. We need not give any notice of the Outside Date.

     Beneficiary may from time to time without charge transfer this L/C, in whole but not in part,
to any transferee (the “Transferee”). Issuer shall look solely to Beneficiary for payment
of any fee for any transfer of this L/C. Beneficiary or Transferee shall consummate such transfer
by delivering to Issuer the original of this L/C and a Transfer Notice substantially in the form of
Exhibit B, purportedly signed by Beneficiary, and designating Transferee. Issuer shall promptly
reissue or amend this L/C in favor of Transferee as Beneficiary. Upon any transfer, all references
to Beneficiary shall automatically refer to Transferee, who may then exercise all rights of
Beneficiary. Issuer expressly consents to any transfers made from time to time in compliance with
this paragraph.

     Any notice to Beneficiary shall be in writing and delivered by hand with receipt acknowledged
or by overnight delivery service such as FedEx (with proof of delivery) at the above address, or
such other address as Beneficiary may specify by written notice to Issuer. A copy of any such
notice shall also be delivered, as a condition to the effectiveness of such notice, to:
                     (or such replacement as Beneficiary designates from time to time by written notice).

     No amendment that adversely affects Beneficiary shall be effective without Beneficiary’s
written consent.

     This L/C is subject to and incorporates by reference: (a) the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce Publication No. 500 (the “UCP”); and (b) to
the extent not inconsistent with the UCP, Article 5 of the Uniform Commercial Code of the
State of New York.

Very truly yours,

[Issuer Signature]

EXHIBIT K-2

 

EXHIBIT A

FORM OF SIGHT DRAFT

[BENEFICIARY LETTERHEAD]

TO:

[Name and Address of Issuer]

SIGHT DRAFT

AT SIGHT, pay to the Order of                     , the sum of                      United States Dollars
($                    ). Drawn under [Issuer] Letter of Credit No.                      dated                     .

[Issuer is hereby directed to pay the proceeds of this Sight Draft solely to the following account:
                    .]

[Name and signature block, with signature or purported signature of Beneficiary]

Date:                     

EXHIBIT K-3

 

EXHIBIT B

FORM OF TRANSFER NOTICE

[BENEFICIARY LETTERHEAD]

TO:

[Name and Address of Issuer] (the “Issuer”)

TRANSFER NOTICE

By signing below, the undersigned, Beneficiary (the “Beneficiary”) under Issuer’s Letter of Credit
No.                      dated                      (the “L/C”), transfers the L/C to the following transferee
(the “Transferee”):

[Transferee Name and Address]

The original L/C is enclosed. Beneficiary directs Issuer to reissue or amend the L/C in favor of
Transferee as Beneficiary. Beneficiary represents and warrants that Beneficiary has not
transferred, assigned, or encumbered the L/C or any interest in the L/C, which transfer,
assignment, or encumbrance remains in effect.

[Name and signature block, with signature or purported signature of Beneficiary]

Date:                     

EXHIBIT K-4

 

EXHIBIT L

RECIPROCAL EASEMENT AGREEMENT

RECORDING REQUESTED BY:

BMR-9865 Towne Centre Drive LLC

General Counsel / Finance Department

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128

SPACE ABOVE LINE FOR RECORDER’S USE ONLY

RECIPROCAL EASEMENT AND COVENANT AGREEMENT

     This RECIPROCAL EASEMENT AND COVENANT AGREEMENT (together with all exhibits attached hereto
and by this reference incorporated herein, this “Agreement”) is made and entered into as of
        , 2007 (the “Effective Date”), by and between BMR-9885 TOWNE CENTRE DRIVE LLC, a Delaware
limited liability company (together with its successors and assigns, the “Parcels 1&2
Owner”), whose address is 17140 Bernardo Center Drive, Suite 222, San Diego, California 92128
and BMR-9865 TOWNE CENTRE DRIVE LLC, a Delaware limited liability company (together with its
successors and assigns, the “Parcel 3 Owner” and, together with the Parcels 1&2 Owner, the
“Owners”)), whose address is 17140 Bernardo Center Drive, Suite 222, San Diego, California
92128.

RECITALS

     A. WHEREAS, the Parcels 1&2 Owner owns three (3) parcels of real property located in the City
of San Diego, County of San Diego, State of California, legally described as: (1) Parcel 1 of
Parcel Map 18286 filed with the San Diego County Recorder on June 21, 1999 (together with any
easements and appurtenances thereto, the “Parcel 1 Land”); (2) Parcel 2 of Parcel Map 18286
filed with the San Diego County Recorder on June 21, 1999 (together with any easements and
appurtenances thereto, the “Parcel 2 Land” and, together with the Parcel 1 Land, the
“Parcels 1&2 Land”); and (3) Parcel 3 of Parcel Map 18286 filed with the San Diego County
Recorder on June 21, 1999 (together with any easements and appurtenances thereto, the “Parcel 3
Land” and, collectively with the Parcel 1 Land and the Parcel 2 Land, the “Parcels”).
The Parcels 1&2 Land is improved by two (2) buildings consisting of approximately 104,870 square
feet of space (the “Parcels 1&2 Building”), and the Parcel 3 Land is improved by one (1)
building consisting of approximately 11,000 square feet of space (the “Parcel 3 Building”).

     B. WHEREAS, concurrently herewith, the Parcels 1&2 Owner is conveying to the Parcel 3 Owner
all of its right, title and interest in the Parcel 3 Land, together with the Parcel 3 Building.

     C. WHEREAS, the Parcel 3 Owner intends to construct an additional building on the Parcel 3
Land (the “Additional Parcel 3 Building” and, collectively with the Parcels 1&2 Building
and the Parcel 3 Building, the “Buildings”), totaling approximately 83,866 rentable square
feet.

     D. WHEREAS, the Parcel 3 Land is improved by, among other things, a fitness center, a full
court basketball/sports courts, outdoor seating areas, dressing, locker and working rooms,
restrooms, and showers (the “Recreation Facilities”).

     E. WHEREAS, pursuant to that certain: (a) Amended and Restated Lease dated as of January 26,
2007 (the “Parcels 1&2 Lease”), the Parcels 1&2 Owner is leasing the Parcels 1&2 Building
to Illumina, Inc., a Delaware corporation (the “Parcels 1&2 Tenant”); (b) Lease dated as of
January 26, 2007 (the “Parcel 3 Lease”), the Parcel 3 Owner is leasing a portion of the
Parcel 3 Building and, upon completion, the Additional Parcel 3 Building, to Illumina, Inc., a
Delaware corporation (the “Parcel 3 Tenant”); and (c) Eastgate Pointe Building “D” Lease
dated as of July 6, 2000 (the “Diversified Lease”), Diversified Eastgate Pointe, LLC, a
California limited liability company (as successor in interest to Matsix Investments, Inc.,
“Diversified” and,

EXHIBIT L-1

 

together with the Parcels 1&2 Tenant and the Parcel 3 Tenant, the “Tenants”), is leasing a portion
of the Parcel 3 Building.

     F. WHEREAS, the Parcels 1&2 Owner and the Parcel 3 Owner desire to grant each other and their
respective Tenants certain rights to use their respective Parcels, including access rights, parking
rights, and certain rights to use the Recreation Facilities, all in accordance with the following.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and accuracy of which is hereby acknowledged, the parties hereto hereby
agree as follows:

AGREEMENT

1. Grant of Easement Rights, Etc.

          1.1 Grant by Parcels 1&2 Owner. Subject to the terms and conditions hereof: the
Parcels 1&2 Owner hereby grants, bargains, sells and conveys perpetually to the Parcel 3 Owner and
its successors in title, for the benefit of, and appurtenant to, the Parcel 3 Land, a
non-exclusive easement and right of way (the “Parcels 1&2 Driveway Easement”) for the
Parcel 3 Benefited Parties (as defined below) over, upon, through and across the portions of the
easement area described on Exhibit A attached hereto and incorporated hereby (the
“Parcels 1&2 Driveway Servient Tenement”), to be used in common with the Parcels 1&2
Benefited Parties (as defined below), for vehicular or pedestrian ingress, egress and access
(“Access”) to and from the public streets adjacent to the Parcel 3 Land.

          1.2 Grant by Parcel 3 Owner. Subject to the terms and conditions hereof: the Parcel 3
Owner hereby grants, bargains, sells and conveys perpetually to the Parcels 1&2 Owner and its
successors in title, for the benefit of, and appurtenant to, the Parcels 1&2 Land, the following
easements and licenses:

          (a) Parcel 3 Driveway Easement: a non-exclusive easement and right of way (the
“Parcel 3 Driveway Easement”) for the Parcels 1&2 Benefited Parties over, upon,
through and across the portions of the easement area described on Exhibit A attached
hereto and incorporated hereby (the “Parcel 3 Driveway Servient Tenement” and
together with the Parcels 1&2 Driveway Servient Tenement, the “Driveway Servient
Tenements”), to be used in common with the Parcel 3 Benefited Parties, for Access to and
from the public streets adjacent to Parcels 1&2 Land.

          (b) Parking Easement: from and after substantial completion of the Additional
Parcel 3 Building, a non-exclusive easement and right of way (the “Parking
Easement”) for the Parcels 1&2 Benefited Parties over, upon, through and across the
portions of the easement area and to use the parking spaces described on Exhibit B
attached hereto and incorporated hereby (the “Parking Servient Tenement”), to be
used in common with the Parcel 3 Benefited Parties, for vehicular parking and Access to the
Parcels 1&2 Land. The Parcel 3 Owner has the right to reasonably establish the location of
the pedestrian pathways in the Parking Servient Tenement so as to minimize (i) the impact on
the number of parking spaces within the Parcel 3 Land and (ii) the likely disruption to the
Parcel 3 Benefited Parties.

          (c) Recreation Facilities: a non-exclusive license (the “Recreation
Facilities License” and, collectively with the Parcel 3 Driveway Easement, the Parking
Easement and the Access Easement, the “Parcel 3 Easements” and, together with the
Parcels 1&2 Driveway Easement, the “Easements”)) for the Parcels 1&2 Benefited
Parties, to be used in common with the Parcel 3 Benefited Parties, to Access, use and enjoy
the Recreation Facilities located on the Parcel 3 Land. The Recreation Facilities License
shall include the right of ingress, egress and regress for pedestrian traffic over and
across any and all sidewalks, elevators, stairways, paths, valleys and lanes within Parcel 3
Land which provides reasonably direct access from the Parcels 1&2 Land to the Recreation
Facilities, as further described on Exhibit C attached hereto and incorporated
hereby (the “Recreation Facilities Servient Tenement” and, collectively with the
Parcel 3 Driveway Servient Tenement, and the Parking Servient Tenement, the “Parcel 3
Servient 

EXHIBIT L-2

 

Tenements” and, together with the Parcels 1&2 Driveway Servient Tenement, the
“Servient Tenements”).

          1.3 Temporary Parking Easement. In addition to the Parcel 3 Easements granted in
Section 1.2, the Parcel 3 Owner hereby grants, bargains, sells and conveys to the Parcels
1&2 Owner and its successors in title, for the benefit of, and appurtenant to, the Parcels 1&2
Land, a non-exclusive temporary easement and right of way (the “Temporary Parking
Easement”) for the Parcels 1&2 Benefited Parties over, upon, through and across the portions of
the easement area and to use the parking spaces and the pedestrian pathways described on
Exhibit D attached hereto and incorporated hereby (the “Temporary Parking Servient
Tenement”), to be used in common with the Parcel 3 Benefited Parties, for vehicular parking and
Access to the Parcels 1&2 Land. The Parcel 3 Owner has the right to reasonably establish the
location of the pedestrian pathways in the Temporary Parking Servient Tenement so as to minimize
(a) the impact on the number of parking spaces within the Parcel 3 Land and (b) the likely
disruption to the Parcel 3 Benefited Parties. The Temporary Parking Easement shall be irrevocable
until substantial completion of the Additional Parcel 3 Building (the “Additional Parcel 3
Building Substantial Completion Date”). During the term of the Temporary Parking Easement, the
Temporary Parking Easement shall be considered for all purposes under this Agreement as a “Parking
Easement.” Immediately upon the Additional Parcel 3 Building Substantial Completion Date, the
Temporary Parking Easement shall immediately terminate.

          1.4 In General. For purposes of this Agreement the following shall apply:

          (a) The term “Parcels 1&2 Benefited Parties” shall mean the Parcels 1&2 Owner,
the Parcels 1&2 Tenant, and any person from time to time entitled to the use and occupancy
of any portion of the improvements on the Parcel 3 Land as an owner or under any lease,
sublease, license, concession or other similar agreement, and any of their officers,
directors, members, employees, agents, contractors, customers, vendors, suppliers, visitors,
guests, invitees, licensees, tenants, subtenants and concessionaires.

          (b) The term “Parcel 3 Benefited Parties” shall mean the Parcel 3 Owner, the
Parcel 3 Tenant, Diversified, and any person from time to time entitled to the use and
occupancy of any portion of the improvements on the Parcels 1&2 Land as an owner or under
any lease, sublease, license, concession or other similar agreement, and any of their
officers, directors, members, employees, agents, contractors, customers, vendors, suppliers,
visitors, guests, invitees, licensees, tenants, subtenants and concessionaires.

          (c) The term “Benefited Parties” shall mean the Parcels 1&2 Benefited Parties
and the Parcel 3 Benefited Parties.

          (d) The Easements are not exclusive. Without limiting the generality of the foregoing,
each Owner may also use their property for any purposes which does not unreasonably
interfere with such uses by the other Owner, and/or convey easements appurtenant or in gross
upon, under, over and across their property to other persons, public and private, for the
same purposes as the other Owner’s use thereof, and for other purposes which do not
unreasonably interfere with such uses by the other Owner, without necessity for further
consent or documentation of any kind by such Owner.

          (e) This Agreement, and the protective covenants, conditions, restrictions, grants of
easements, licenses, rights, rights-of-way, liens, charges and equitable servitudes set
forth therein or herein, shall, except as otherwise expressly provided therein or herein,
(a) be irrevocable and perpetual in nature (other than the Temporary Parking Easement), (b)
be binding upon all persons having or acquiring any right, title or interest in any property
encumbered thereby, or any part thereof, and upon any successors or assigns to any such
right, title or interest, (c) inure to the benefit of all persons having or acquiring any
right, title or interest in any properties benefited thereby, or any part thereof, and upon
any successors or assigns to any such right, title or interest, and (d) constitute covenants
running with the land pursuant to applicable law, including without limitation Section 1468
of the Civil Code of the State of California.

EXHIBIT L-3

 

          (f) The Parcel 3 Easements shall be appurtenant to and shall run with fee title to the
Parcels 1&2 Land. The Parcels 1&2 Driveway Easement shall be appurtenant to and shall run
with fee title to the Parcel 3 Land.

          (g) Nothing herein contained shall be deemed to be a gift or dedication of any rights
in any Parcels to or for the benefit of the general public or for any public purposes
whatsoever, it being the intention of the parties hereto that this Agreement shall be
strictly limited to and for the purposes herein expressed.

     2. Covenants of the Parcels 1&2 Owner. The Parcels 1&2 Owner covenants and agrees as
follows:

          2.1 Injury, Damage, and Indemnification. The Parcels 1&2 Owner shall exercise its
rights and perform its obligations under this Agreement so as to reasonably minimize interference
with the use of the Parcel 3 Land or unreasonably disturb any of the Parcel 3 Benefited Parties,
including any construction or alteration work undertaken by the Parcel 3 Owner on the Parcel 3
Land. Subject to Section 6.4, if, in entering any of the Parcel 3 Servient Tenements, any
of the Parcels 1&2 Benefited Parties causes any damage other than ordinary wear and tear, to
landscaping, pavement, site improvements, or other real or personal property located on the Parcel
3 Land, or causes any injury to any person, whether such damage, release, or injury is intentional
or unintentional, then the Parcels 1&2 Owner shall:

          (a) promptly reimburse the Parcel 3 Owner the cost to repair any and all physical damage as
necessary to substantially restore the affected area to the condition that existed immediately
before such physical damage; and

          (b) indemnify, defend, and hold harmless the Parcel 3 Owner from and against any and all
demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or
judgments, and all expenses (including, without limitation, attorneys’ fees, mechanic’s liens,
charges and disbursements) incurred in investigating or resisting the same (collectively,
“Claims”) resulting from such damage or injury in accordance with Section 8.

          2.2 No Change of Use. The Parcels 1&2 Owner shall not permit or create a substantial,
permanent or indefinite change in its use of the Parcels 1&2 Driveway Easement.

     3. Covenants of the Parcel 3 Owner. The Parcel 3 Owner covenants and agrees as
follows:

          3.1 Injury, Damage, and Indemnification. Subject to Section 6.4, if, in
entering the Parcels 1&2 Driveway Servient Tenement, any of the Parcel 3 Benefited Parties cause
any damage other than ordinary wear and tear, to landscaping, pavement, site improvements, or other
real or personal property located on the Parcels 1&2 Driveway Servient Tenement, or causes any
injury to any person, whether such damage, release, or injury is intentional or unintentional, then
the Parcel 3 Owner shall:

          (a) promptly reimburse the Parcels 1&2 Owner the cost to repair any and all physical damage as
necessary to substantially restore the affected area to the condition that existed immediately
before such physical damage; and

          (b) indemnify, defend, and hold harmless the Parcels 1&2 Owner from and against any and Claims
resulting from such damage or injury in accordance with Section 8.

          3.2 No Change of Use. The Parcel 3 Owner shall not permit or create a substantial,
permanent or indefinite change in its use of the Parcel 3 Easements other than in connection with
the construction of the Additional Parcel 3 Building.

     4. Maintenance and Repair of Servient Tenements.

          4.1 Maintenance of Servient Tenements.

          (a) General Provisions.

          (i) As used in this Agreement, the term “Maintenance” (or as a verb, to
“Maintain”) means maintain, repair, sweep, and otherwise operate the Servient

EXHIBIT L-4

 

Tenements, as applicable, so that at all times the Servient Tenements, as applicable,
are in a reasonable condition and state of reasonable repair sufficient for use in
accordance with this Agreement.

          (ii) As used in this Agreement, the term “good condition and repair” means in a
condition which is not less than the condition of such Servient Tenement on the date on
which this Agreement was initially recorded, normal wear and tear excepted.

          (b) Driveway Servient Tenements. The Parcels 1&2 Owner and the Parcel 3 Owner
shall each, at their respective cost and expense, Maintain all paved surfaces within the
portion of the Driveway Servient Tenement on its respective parcel of land with a paved
surface and in a smooth, clean, orderly, safe and good state of repair and condition.

          (c) Parking Servient Tenement. The Parcel 3 Owner shall on a timely basis
perform all Maintenance for the Parking Servient Tenement at the Parcel 3 Owner’s sole cost
and expense. The Parking Servient Tenement shall be maintained in good condition and
repair, including all paved surfaces within the portion of the Parking Servient Tenement
with a paved surface and in a smooth, clean, orderly, safe and good state of repair and
condition. The Parcel 3 Owner shall make all repairs or replacements of, in, on, under,
within, upon or about such, property, whether said repairs involve ordinary or extraordinary
repairs or replacements, necessary to keep the same in safe and good operating and
condition, howsoever the necessity or desirability thereof may arise, and whether or not
necessitated by wear, tear, obsolescence, defects or otherwise.

          (d) Recreation Facilities.

          (i) The Parcel 3 Owner shall on a timely basis perform all Maintenance for the
Recreation Facilities Servient Tenement at the Parcel 3 Owner’s sole cost and expense. The
Recreation Facilities Servient Tenement shall be maintained in good condition and repair,
including all paved surfaces within the portion of the Recreation Facilities Servient
Tenement with a paved surface and in a smooth, clean, orderly, safe and good state of repair
and condition

          (ii) The Parcel 3 Owner shall on a timely basis Maintain in good condition and repair
and make all repairs or replacements of, in, on, under, within, upon or about such,
Recreation Facilities, whether said repairs or replacements are to the interior or exterior
thereof, or structural or non-structural components thereof, or involve ordinary or
extraordinary repairs or replacements, necessary to keep the same in safe and good operating
and condition, howsoever the necessity or desirability thereof may arise, and whether or not
necessitated by wear, tear, obsolescence, defects or otherwise. In the event the Parcel 3
Owner decides to replace any of the Recreation Facilities, the Parcel 3 Owner shall replace
such Recreation Facilities with Recreation Facilities substantially equivalent or better and
providing substantially the same quality of service or better.

          (iii) No material changes in the improvements or use of the Recreation Facilities shall
be permitted without the prior written approval of Parcels 1&2 Owner, which consent shall
not be unreasonably withheld, conditioned or delayed.

          4.2 Waste. Neither the Parcels 1&2 Owner nor the Parcel 3 Owner shall suffer or
commit, and shall use all reasonable precaution to prevent, waste to any of their respective
Servient Tenements.

          4.3 Failure to Maintain the Servient Tenements. If an Owner shall fail to perform the
Maintenance of its respective Servient Tenements as set forth in Section 4.1, the other
Owner shall have the right, but not the obligation, (a) following thirty (30) days’ written notice
and opportunity to cure (or such longer period as may be necessary to cure such failure if such
default cannot be completed within such period provided such Owner commences to cure within said
thirty (30) day period and thereafter diligently prosecutes such cure to completion), or (b) in the
case of any facts or circumstances that create an imminent risk of damage to such Servient
Tenements or injury to, or death of, persons, without written notice, to perform such Maintenance
as it deems reasonable and necessary. Upon written demand, the Owner in default

EXHIBIT L-5

 

shall reimburse the other Owner for the reasonable costs incurred by it in performing such
Maintenance. Such written demand for payment shall include a statement of costs and reasonable
detail of expenses.

          4.4 Damage or Destruction. Subject to Section 4.5, if any portion of the
Servient Tenements are damaged by fire or other perils, then the Owner of such Servient Tenements
shall, at such Owner’s sole cost and expense, commence and proceed diligently with the work of
repair, reconstruction and restoration of such Servient Tenements, in as timely a manner as
practicable under the circumstances.

          4.5 Condemnation. Notwithstanding anything to the contrary set forth herein, neither
Owner shall have any obligation to restore, reconstruct or replace any of the Servient Tenements
located on its property in the event that such Servient Tenements is taken pursuant to a
condemnation (or similar) action by a governmental or quasi-governmental entity. In any of such
events, this Agreement shall automatically terminate without the need for any further action by any
Owner as to such Servient Tenements that has been affected by such casualty or condemnation.

          4.6 Compliance with Law. Each Owner and each Benefited Party shall, at its sole cost
and expense, promptly comply with all federal, state and local laws, ordinances, regulations,
codes, rules, orders and safety guidelines pertaining to this Agreement, the Parcels 1&2 Land, the
Parcel 3 Land, or any other matter within the scope of this Agreement (collectively,
“Laws”) and all recorded documents or recorded amendments thereto affecting the Parcels or
any portion thereof, and with the requirements of any board of fire underwriters or other similar
body now or hereafter constituted relating to or affecting the condition, use or occupancy of the
Parcels.

          4.7 Rules and Regulations. The Parcel 3 Owner may establish and modify, from time to
time, reasonable rules and regulations (the “Rules and Regulations”) governing the use of
the Recreation Facilities. The Parcels 1&2 Owner covenants and agrees to use commercially
reasonable efforts to cause the Parcels 1&2 Benefited Parties to comply with all applicable Rules
and Regulations. The Parcel 3 Owner shall have the right to refuse to allow any of the Parcels 1&2
Benefited Parties access to the Recreation Facilities if such Parcels 1&2 Benefited Party has not
complied with the applicable Rules and Regulations after receiving written notice of such failure
to comply.

          4.8 Use of Easements.

          (a) The use of the Easements by the parties hereto shall be expressly conditioned upon
the compliance by such parties with each of the terms and conditions specified in this
Agreement (including, but not limited to, the applicable Rules and Regulations), which Rules
and Regulations shall be uniformly applied by the parties hereto to all Benefited Parties
without discrimination.

          (b) No fence or other barrier shall be erected or permitted within or across any
portion of the Driveway Servient Tenements or the Parking Servient Tenement which would
prevent or obstruct the passage of pedestrian or vehicular travel; provided, however, that
the foregoing shall not prohibit the temporary erection of barricades which are reasonably
necessary for security and/or safety purposes in connection with the construction of the
Additional Parcel 3 Building, provided that all such work shall be conducted to reasonably
minimize the interference with the use of such Servient Tenement, and such work shall be
diligently prosecuted to completion.

          (c) Access Cards. Notwithstanding any other provision of this Agreement, the
Parcel 3 Owner shall have the right to restrict access to the Recreation Facilities located
in the Parcel 3 Building, subject to the provisions of this Section 4.8:

          (i) The access to the Recreation Facilities if locked, shall incorporate into their
design a system of being opened by an access card, entry key, remote control mechanism or
other similar controlled access device (an “Access Card”). The Parcel 3 Owner shall
provide to the Parcels 1&2 Owner a reasonable initial supply of Access Cards (the
reasonableness of such supply to be measured in terms of the number of Parcels 1&2 Benefited
Parties that will be accessing the Recreation Facilities).

EXHIBIT L-6

 

The
Parcel 3 Owner further shall provide any additional Access Cards reasonably required by
the Parcels 1&2 Owner from time to time, and the Parcels 1&2 Owner shall reimburse the
Parcel 3 Owner for the actual cost thereof.

          (ii) The Parcels 1&2 Owner shall maintain a list of those Parcels 1&2 Benefited Parties
to whom Access Cards have been provided, and the Parcels 1&2 Owner shall provide copies of
such lists from time to time upon request to the Parcel 3 Owner.

          (iii) The intent of the foregoing is that the scope of the access, ingress and egress rights
enjoyed by the Parcels 1&2 Owner of the Recreation Facilities shall not be diminished by the
provisions of this Section 4.8 except that exercise of such rights of the Recreation
Facilities may be controlled by the Access Cards so long as the Parcel 3 Owner provides the Parcels
1&2 Owner with Access Cards that operate in the manner described in this Section 4.8.

     5. Construction of Additional Parcel 3 Building: Before the Parcel 3 Owner commences
any construction of the Additional Parcel 3 Building, the Parcel 3 Owner agrees to coordinate and
discuss any necessary security precautions or restrictions to the Easements necessary to protect
the Parcels 1&2 Benefited Parties in connection with the Parcels 1&2 Benefited Parties’ use of the
Parcel 3 Easements. The Parcel 3 Owner shall have the ability to relocate the Parcel 3 Easements
at its own expense to any other location on the Parcel 3 Land so long as relocation shall continue
to reasonably provide Access to the Recreation Facilities or the Parcels 1&2 Land, as applicable.

     6. Insurance: The Owners shall procure and maintain the following insurance:

          6.1 Insurance. Each Owner shall, at its own cost and expense, procure and maintain in
effect, a comprehensive public liability insurance with limits of not less than Five Million
Dollars ($5,000,000) per occurrence for death or bodily injury and property damage with respect to
the their respective Parcel. Such insurance policies shall name the other Owner, BioMed Realty,
L.P., BioMed Realty Trust, Inc., and Mortgagees as additional insureds.

          6.2 Insurance Provisions. Each policy described in this Section 6 shall
provide that the knowledge or acts or omissions of any insured party shall not invalidate the
policy as against any other insured party or otherwise adversely affect the rights of any other
insured party under any such policy; (ii) shall provide (except for liability insurance described
in Section 6.1, for which it is inapplicable) by endorsement or otherwise, that the
insurance shall not be invalidated should any of the insureds under the policy waive in writing
prior to a loss any or all rights of recovery against any party for loss occurring to the property
insured under the policy, if such provisions or endorsements are available and provided that such
waiver by the insureds does not invalidate the policy or diminish or impair the insured’s ability
to collect under the policy, or unreasonably increase the premiums for such policy unless the party
to be benefited by such endorsement or provision pays such increase; (iii) shall provide for a
minimum of thirty (30) days’ advance written notice of the cancellation, non-renewal or material
modification thereof to all insureds thereunder; (iv) shall include a standard mortgagee
endorsement and loss payable clause in favor of the Mortgagees reasonably satisfactory to them; and
(v) shall not include a co-insurance clause.

          6.3 Limits of Liability. Insurance specified in this Section 6 shall be
jointly reviewed by the Owners periodically at the request of any Owner, but no review will be
required more often than annually, to determine if such limits, deductible amounts and types of
insurance are reasonable and prudent in view of the type, place and amount of risk to be
transferred and the financial responsibility of the insureds, and to determine whether such limits,
deductible amounts and types of insurance comply with the requirements of all applicable Laws and
whether on a risk management basis, additional types of insurance or endorsements against special
risks should be carried or whether required coverages or endorsements should be deleted. In
connection with such periodic review, each Owner shall make reasonably available to the other any
Mortgagee (as defined below) insurance requirements that apply to such Owner. Limits of liability
may not be less than limits required by Mortgagees. Such limits shall be increased or decreased,
deductible amounts increased or decreased or types of insurance shall be modified, if
justified, based upon said review, and upon any such increase, decrease or modification, the
Owners shall, at any Owners election, execute an instrument in recordable form confirming such
increase, decrease or modification, which any Owner may record with the San Diego County Recorder’s
Office as a supplement to this Agreement.

EXHIBIT L-7

 

          6.4 Waiver. Provided that such a waiver does not invalidate the respective policy or
policies or diminish or impair the insured’s ability to collect under such policy or policies, each
Owner hereby waives all claims for recovery from the other Owner for any loss or damage to any of
its property insured (or required hereunder to be insured) under valid and collectible insurance
policies to the extent of any recovery collectible (or which would have been collectible had such
insurance required hereunder been obtained) under such insurance policies plus any deductible
amounts.

          6.5 Delegate. Each Owner shall have the right to delegate its obligations under this
Section 6 to its respective Tenants.

     7. Reimbursements: Any reimbursements due to a Owner from the other Owner which are
not paid within fifteen (15) days of receipt of any invoice therefore shall bear interest at a rate
equal to the prime rate, as published in The Wall Street Journal from time to time, plus three
percent (3%) per annum, not to exceed the highest rate allowed by law. If The Wall Street Journal
no longer publishes such prime rate, then the Parcel 3 Owner shall reasonably designate a
substitute publication that is nationally recognized as an authoritative source for interest rate
information.

     8. Indemnification: Subject to Section 6.4, each Owner (hereinafter as used
in this Section 8, the “Indemnifying Owner”) covenants and agrees, at its sole cost
and expense, to indemnify, defend and hold harmless the other Owner (hereinafter as used in this
Section 8.1, the “Indemnitee”) from and against any and all Claims, against
Indemnitee, for losses, liabilities, damages, judgments, costs and expenses by or on behalf of any
Person other than the Indemnitee, arising from: (a) the Indemnifying Owner’s negligent use,
possession or management of the Indemnifying Owner’s property or activities therein; and (b) the
Indemnifying Owner’s or any of such Indemnifying Owner’s Benefited Parties use, exercise or
enjoyment of the applicable Easements, except to the extent caused by the Indemnitee’s gross
negligence or willful misconduct. Notwithstanding anything to the contrary in this Section
8.1, the Parcel 3 Owner shall have no responsibility to the Parcels 1&2 Owner for any Claims
arising out of, caused by, or resulting from any of the Parcels 1&2 Benefited Parties’ use of the
Recreation Facilities or the negligence of any of the Parcel 3 Benefited Parties in connection with
the operation and maintenance of such Recreation Facilities.

     9. Remedies. In the event of any breach, violation, or failure to perform or satisfy
any of the duties or obligations contained in this Agreement (including without limitation using
any Servient Tenement in any manner not permitted by this Agreement), the Owner to which such duty
or obligation is owed shall have the right to provide written notice to the affecting Owner
describing in reasonable detail the nature of the breach, violation or failure. If such breach,
violation or failure is not cured within thirty (30) days after delivery of such notice, the Owner
delivering the notice shall have the right to enforce all easements, rights, rights-of-way, charges
and equitable servitudes now or hereafter imposed pursuant to this Agreement. Any court hearing a
dispute with respect to such alleged breach shall have the power to award all rights and remedies
available at law or in equity; provided, however, that no breach of this Agreement by a Owner shall
entitle any other Owner to cancel, rescind or terminate the rights granted to the breaching Owner
hereunder; and provided further that such complaining Owner shall have the right (a) to require the
breaching Owner to remedy the breach, and (b) in the event of a default in the payment of any
amount due and payable under this Agreement, either Owner, in addition to any other remedy provided
herein or by law, shall have the right to recover a money judgment for the amount due and payable,
including costs and reasonable attorneys’ fees.

     10. Limitation of Liability.

          10.1 Limitation of Liability. The liability under this Agreement of an Owner shall be
limited to and enforceable solely against the assets of such Owner constituting an interest in the
Parcels (including insurance and condemnation proceeds attributable to the Parcels) and no other
assets of such Owner.

          10.2 Transfer of Ownership. If an Owner shall sell, assign, transfer, convey or
otherwise dispose of its portion of the Parcel (other than as security for a loan to such Owner),

EXHIBIT L-8

 

then (a) such Owner shall be entirely freed and relieved of any and all covenants and obligations
arising under this Agreement which accrue under this Agreement from and after the date such Owner
shall so sell, assign, transfer, convey or otherwise dispose of its interest in such portion of the
Parcel, and (b) the person or entity who succeeds to Owner’s interest in such portion of the Parcel
shall be deemed to have assumed any and all of the covenants and obligations arising under this
Agreement of such Owner both theretofore accruing or which accrue under this Agreement from and
after the date such Owner shall so sell, assign, transfer, convey or otherwise dispose of its
interest in such Parcel.

     11. Miscellaneous

          11.1 Term. The covenants, conditions and restrictions contained in this Agreement
shall be enforceable by the Owners and their respective successors and assigns for the term of this
Agreement which shall be perpetual (or if the law provides for a time limit on any covenant,
condition, or restriction, then such covenant, condition or restriction shall be enforceable for
such shorter period permitted by law), subject to amendment as set forth in Section 11.8.
If the law provides for such shorter period, then upon expiration of such shorter period, said
covenants, conditions and restrictions shall be automatically extended without further act or deed
of the Owners, except as may be required by law, for successive periods of ten (10) years, subject
to amendment or termination as set forth in Section 11.8.

          11.2 Further Assurances. Each Owner shall each promptly upon request take such
further actions, and execute such further documents, as shall be reasonably necessary or
appropriate from time to time to implement and effectuate the intentions of the Owners as expressed
in this Agreement.

          11.3 Estoppel Certificates. At any time and from time to time, within fifteen (15)
days after written request by either Owner or any institutional mortgagee of an Owner, the Owner
receiving such a request shall deliver to the requesting Owner and/or institutional mortgagee a
statement in writing certifying that this Agreement is unmodified and in full force and effect (or
specifying each such modification), and stating whether or not there is any default in the
performance of any provision contained in this Agreement (and specifying each such default, if
any). If an Owner or institutional mortgagee shall fail or refuse to deliver such a statement
within such period, then as against such Owner or institutional mortgagee, this Agreement shall be
deemed to be in full force and effect with no defaults hereunder.

          11.4 Notices. Any notice, consent, demand, bill, statement or other communication
required or permitted to be given hereunder shall be in writing and shall be given by personal
delivery, overnight delivery with a reputable nationwide overnight delivery service, or certified
mail (return receipt requested), and if given by personal delivery, shall be deemed delivered upon
receipt; if given by overnight delivery, shall be deemed delivered one (1) day after deposit with a
reputable nationwide overnight delivery service; and, if given by certified mail (return receipt
requested), shall be deemed delivered three (3) business days after the time the notifying party
deposits the notice with the United States Postal Service. Any notices given pursuant to this
Agreement shall be sent to the following addresses or at such other single address within the
United States as a party may specify by notice to the other:

If to Parcels 1&2 Owner:

BMR-9885 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

Facsimile: (858) 985-9843

If to Parcel 3 Owner:

BMR-9865 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

Facsimile: (858) 985-9843

EXHIBIT L-9

 

          11.5 Governing Law; Modification. This Agreement shall be governed by, construed and
interpreted in accordance with the internal laws of the State of California, without reference to
choice of law principles.

          11.6 Third Party Beneficiaries. This Agreement is made and entered into for the sole
protection and benefit of the parties hereto, their successors and assigns, and no other person or
entity shall under any circumstances be deemed to be a beneficiary of any of the rights, remedies,
terms and provisions of this Agreement.

          11.7 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES
HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER
OF THIS AGREEMENT AND THE RELATIONSHIP BETWEEN THE PARTIES HERETO THAT IS BEING ESTABLISHED. THE
PARTIES HERETO ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT
EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE PARTIES HERETO
FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.

          11.8 Amendment. This Agreement may be amended or otherwise modified only in a writing
signed and acknowledged by the Parcels 1&2 Owner and the Parcel 3 Owner, or their respective
successors and assigns; provided, however, (a) for so long as the Parcels 1&2 Lease
is in full force and effect, any such amendment or modification shall be subject to: (i) the prior
written consent of the original named tenant under the Parcels 1&2 Lease, which consent pursuant to
Section 14.2.5 of the Parcels 1&2 Lease shall not be unreasonably withheld, conditioned or
delayed, and (ii) solely with respect to amendments or modifications that could reasonably be
expected to have a material adverse effect on obligations assumed by any successors and assigns of
the original named tenant under the Parcels 1&2 Lease, the prior written consent of any such
successors and assigns, which consent pursuant to Section 14.2.5 of the Parcels 1&2 Lease
shall not be unreasonably withheld, conditioned or delayed; and (b) for so long as the Parcel 3
Lease is in full force and effect, any such amendment or modification shall be subject to: (i) the
prior written consent of the original named tenant under the Parcel 3 Lease, which consent pursuant
to Section 17.7 of the Parcel 3 Lease shall not be unreasonably withheld, conditioned or
delayed, and (ii) solely with respect to amendments or modifications that could reasonably be
expected to have a material adverse effect on obligations assumed by any successors and assigns of
the original named tenant under the Parcel 3 Lease, the prior written consent of any such
successors and assigns, which consent pursuant to Section 17.7 of the Parcel 3 Lease shall
not be unreasonably withheld, conditioned or delayed. All amendments or modifications which result
in an increase of the costs and expenses to be incurred by such successor and assign under
Section 14.2.2 of the Parcels 1&2 Lease or Section 17.3 of the Parcel 3 Lease shall
be deemed material and adverse.

          11.9 No Partnership. Each of the parties to this Agreement agree that by this
Agreement no partnership, joint venture or other relationship is created other than a contractual
relationship to perform the obligations specifically and expressly stated in this Agreement.

          11.10 Notice to Mortgagee’s Rights of Mortgagee:

          (a) The term “Mortgage” as used herein shall mean any mortgage (or any trust
deed) of an interest in the Parcel given primarily to secure the repayment of money owed by
the mortgagor. The term “Mortgagee” as used herein shall mean the Mortgagee from
time to time under any such Mortgage (or the beneficiary under any such trust deed).

          (b) If a Mortgagee shall have served on the Owners, by personal delivery or by
registered or certified mail return receipt requested, a written notice
specifying the name and address of such Mortgagee, such Mortgagee shall be given a copy
of each and every notice required to be given by one party to the others at the same

EXHIBIT L-10

 

time as
and whenever such notice shall thereafter be given by one party to the others, at the
address last furnished by such Mortgagee. The address of any existing Mortgagee shall be as
set forth in its consent to subordination to be attached hereto in connection with such
Mortgage. After receipt of such notice from a Mortgagee, no notice thereafter given by
either party shall be deemed to have been given unless and until a copy thereof shall have
been so given to the Mortgagee. If a Mortgagee so provides or otherwise requires, and
notice thereof is given by the Mortgagee as provided above:

          (i) A Mortgagee shall have the absolute right, but no duty or obligation, to cure or
correct a breach of this Agreement by the Owner whose property is secured by the Mortgagee’s
Mortgage within any applicable cure period provided for such breach by such mortgagor Owner
plus an additional period of twenty (20) days after notice to the Mortgagee of expiration of
the cure period allowed the mortgagor Owner before the other Owner may exercise any right or
remedy to which it may be entitled as a Benefitted Party, except exercise of a self-help
right in an emergency situation.

          (ii) Should any prospective Mortgagee require a modification or modifications of this
Agreement, which modification or modifications will not cause an increased cost or expense
to the Owner whose property is not subject to the Mortgage of such Mortgagee or in any other
way materially and adversely change the rights and obligations of such Owner, then and in
such event, such Owner agrees that this Agreement may be so modified and agrees to execute
whatever documents are reasonably required therefor and deliver the same to the other Owner
within ten (10) business days following written requests therefor by the other Owner or
prospective Mortgagee.

          11.11 Mortgagee Protection Provisions. No breach or violation of the terms of this
Agreement shall defeat or render invalid the lien of any Mortgage encumbering the Parcels 1&2 Land
or the Parcel 3 Land or any portions thereof; provided, however, that this Agreement and all
provisions hereof shall be binding upon and effective against any subsequent owner of the property
or portion thereof whose title is acquired by foreclosure, trustee’s sale, a deed in lieu, or other
remedies provided in such Mortgage, but such subsequent owners shall take title free and clear of
any of the previous owner’s violations of the terms of this Agreement that occurred before such
transfer of title or occupancy.

          11.12 Attorney’s Fees. In the event any legal action, proceeding or arbitration is
commenced to interpret or enforce the terms of, or obligations arising out of, this Agreement, or
to recover damages for the breach hereof, the party prevailing in any such action, proceeding or
arbitration shall be entitled to recover from the non-prevailing party all reasonable attorney’s
fees, costs and expenses incurred by the prevailing party.

          11.13 Counterparts. This Agreement may be executed in one or more counterparts, each
of which, when taken together, shall constitute one and the same document.

[Signature Page Follows]

EXHIBIT L-11

 

     IN WITNESS WHEREOF, the Owners have executed and delivered this Agreement as of the Effective
Date.

	 	 	 	 	 	 	 	 	 
	 	 	PARCELS 1&2 OWNER	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BIOMED REALTY, L.P.,	 	 
	 	 	 	 	a Maryland limited partnership	 	 
	 	 	 	 	its Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PARCEL 3 OWNER	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BMR-9865 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BIOMED REALTY, L.P.,	 	 
	 	 	 	 	a Maryland limited partnership	 	 
	 	 	 	 	its Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

EXHIBIT L-12

 

ACKNOWLEDGMENTS

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

On                                          before me,                         
                                    ,
a Notary Public, personally appeared , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the                     person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

	 	 	 
	 

Signature of Notary Public

	 	 

(This area for official notarial seal)

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

On                                         before me,                         
                ,
a Notary Public, personally appeared                                                             , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

	 	 	 
	 

Signature of Notary Public

	 	 

(This area for official notarial seal)

EXHIBIT L-13

 

 

CONSENT OF PARCELS 1&2 TENANT

     THE UNDERSIGNED, as the tenant under that certain under that Lease (the “Parcels 1&2 Lease”),
as more particularly defined in Recital D of the foregoing Reciprocal Easement and Covenant
Agreement (“Agreement”) to which this Consent is attached, hereby (a) consents to the execution and
recording of the foregoing Agreement against the undersigned’s leasehold interest in the real
property subject to the Parcels 1&2 Lease, and (b) agrees that the Parcels 1&2 Lease is subject and
subordinate to the Agreement.

     Dated as of                                           , 2007.

	 	 	 	 	 
	 	 	ILLUMINA, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

EXHIBIT L-14

 

 

CONSENT OF PARCEL 3 TENANT

     THE UNDERSIGNED, as the tenant under that certain under that Lease (the “Parcel 3 Lease”), as
more particularly defined in Recital D of the foregoing Reciprocal Easement and Covenant Agreement
(“Agreement”) to which this Consent is attached, hereby: (a) consents to the execution and
recording of the foregoing Agreement against the undersigned’s leasehold interest in the real
property subject to the Parcel 3 Lease, and (b) agrees that the Parcel 3 Lease is subject and
subordinate to the Agreement.

     Dated as of                                           , 2007.

	 	 	 	 	 
	 	 	ILLUMINA, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

EXHIBIT L-15

 

 

CONSENT OF DIVERSIFIED

     THE UNDERSIGNED, as the tenant under that certain under that Eastgate Pointe Building “D”
Lease dated as of July 6, 2000 (the “Diversified Lease”), as more particularly defined in Recital D
of the foregoing Reciprocal Easement and Covenant Agreement (“Agreement”) to which this Consent is
attached, hereby consents to the execution and recording of the foregoing Agreement against the
undersigned’s leasehold interest in the real property subject to the Diversified Lease, and agrees
that the Diversified Lease is subject and subordinate to the Agreement.

     Dated as of                                           , 2007.

	 	 	 	 	 
	 	 	DIVERSIFIED EASTGATE POINTE, LLC
	 	 	a California limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

EXHIBIT L-16

 

 

RECIPROCAL EASEMENT AND COVENANT AGREEMENT

EXHIBITS

	 	 	 
	Exhibit A

	 	Driveway Servient Tenement
	 
	 	 
	Exhibit B

	 	Parking Servient Tenement
	 
	 	 
	Exhibit C

	 	Recreation Facilities Servient Tenement
	 
	 	 
	Exhibit D

	 	Temporary Parking Servient Tenement

EXHIBIT L-17

 

 

EXHIBIT A

DRIVEWAY SERVIENT TENEMENT

TOWN
CENTRE DRIVE

EXHIBIT L-18

 

 

EXHIBIT B

PARKING SERVIENT TENEMENT

TOWN CENTRE DRIVE

EXHIBIT L-19

 

 

EXHIBIT C

RECREATION FACILITIES SERVIENT TENEMENT

TOWN CENTRE DRIVE

EXHIBIT L-20

 

 

EXHIBIT D

TEMPORARY PARKING SERVIENT TENEMENT

TOWN CENTRE DRIVE

EXHIBIT L-21

 

 

EXHIBIT M

FORM OF SUBORDINATION, NON-DISTURBANCE 

AND ATTORNMENT AGREEMENT 

RECORDED AT REQUEST OF

AND WHEN RECORDED RETURN TO:

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 

 

SUBORDINATION, NONDISTURBANCE, AND ATTORNMENT AGREEMENT

     This Subordination, Nondisturbance, and Attornment Agreement (“Agreement”) is made as
of                     ,                      between                      (“Lender”), a
                    , having its
principal place of business at                     ,                     ,                      and Illumina, Inc.
(“Tenant”), a Delaware corporation, having its principal place of business at 9855 through
9885 Towne Centre Drive, San Diego, California.

Recitals:

     A. Lender has agreed to make a loan to BMR-9865 Towne Center Drive LLC, a Delaware limited
liability company (“Landlord”), to be secured by a deed of trust, dated                     ,
                    , and recorded on                     ,                     , as Instrument No.          
           , in the Official
Records of San Diego County, California (together with all amendments, increases, renewals,
modifications, consolidations, spreaders, combinations, supplements, replacements, substitutions,
and extensions, either current or future, referred to hereafter as the “Mortgage”)
encumbering Landlord’s ownership interest in real property located in San Diego County, State of
California. The legal description of the encumbered real property (the “Mortgage
Premises”) is set forth in Exhibit A, attached to this Agreement. The Mortgage, together with
the promissory note or notes, the loan agreement(s), and other documents executed in connection
with it are hereafter collectively referred to as the “Loan Documents”.

     B. On                     ,                     , Tenant and Landlord entered into that certain Lease for a portion
of the Mortgage Premises (the “Lease”). The Lease creates a leasehold estate in favor of
Tenant for space (the “Leased Premises”) located on the Mortgage Premises.

     C. In connection with execution of the Mortgage, Landlord also executed and delivered to
Lender an [Assignment of Leases, Rents and Profits] dated                     ,                     , and recorded on
                    ,                     , as Instrument No.                     , in the Official Records of the County Recorder
of San Diego, California concerning all rents, issues and profits from the Mortgage Premises. This
document, together with all amendments, renewals, modifications consolidations, replacements,
substitutions and extensions, is hereafter referred to as the “Assignment of Rents.”

     TO CONFIRM their understanding concerning the legal effect of the Mortgage and the Lease, in
consideration of the mutual covenants and agreements contained in this Agreement and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Tenant,
intending to be legally bound, agree and covenant as follows:

     1. Representations and Warranties. Tenant warrants and represents that the Lease is
in full force and effect and that, as of the date of this Agreement and to Tenant’s actual
knowledge, there is no default under the Lease by Landlord or Tenant.

     2. Tenant Subordination.

          2.1 Subject to the provisions of Section 3, the Loan Documents shall constitute a lien
or charge on the Mortgage Premises that is prior and superior to the Lease, to the leasehold estate
created by it, and to all rights and privileges of Tenant under it; by this

EXHIBIT M-1

 

 

Agreement, the Lease, the leasehold estate created by it, together with all rights and
privileges of Tenant under it, is, subject to Section 3, subordinated, at all times, to the
lien or charge of the Loan Documents in favor of Lender.

          2.2 By executing this Agreement, Tenant, subject to Section 3, subordinates the Lease
and Tenant’s interest under it to the lien right and security title, and terms of the Loan
Documents, and to all advances or payments made, or to be made, under any Loan Document.

     3. Nondisturbance.

          3.1 Lender consents to the Lease.

          3.2 Despite Tenant’s subordination under Section 2, Tenant’s peaceful and quiet
possession of the Leased Premises shall not be disturbed and Tenant’s rights and privileges under
the Lease, shall not be diminished by Lender’s exercise of its rights or remedies under the Loan
Documents (subject to the provisions of Section 5), provided that:

               (a) no Default (as defined in the Lease) exists; and

               (b) the Lease has not been canceled or terminated (without regard to whether Landlord
or Tenant is then in default under the Lease).

          3.3 Tenant shall not be named or joined in any foreclosure, trustee’s sale, or other
proceeding to enforce the Loan Documents unless such joinder shall be legally required to perfect
the foreclosure, trustee’s sale, or other proceeding.

     4. Attornment.

          4.1 If Lender shall succeed to Landlord’s interest in the Mortgage Premises by foreclosure of
the Mortgage, by deed in lieu of foreclosure, or in any other manner, Tenant shall be bound to
Lender (and Lender shall be bound to Tenant) under all the terms, covenants and conditions of the
Lease for the balance of its term with the same force and effect as if Lender were the Landlord
under the Lease. Tenant shall be deemed to have full and complete attornment to, and to have
established direct privity between Tenant and:

               (a) Lender when in possession of the Mortgage Premises;

               (b) a receiver appointed in any action or proceeding to foreclose the Mortgage;

               (c) any party acquiring title to the Mortgage Premises; or

               (d) any successor to Landlord.

          4.2 Tenant’s attornment is self-operating, and it shall continue to be effective without
execution of any further instrument by any of the parties to this Agreement or the Lease. Lender
agrees to give Tenant written notice if Lender has succeeded to the interest of the Landlord under
the Lease. Subject to Section 5, the terms of the Lease are incorporated into this
Agreement by reference.

          4.3 If the interests of Landlord under the Lease are transferred by foreclosure of the
Mortgage, deed in lieu of foreclosure, or otherwise, to a party other than Lender
(“Transferee”), in consideration of, and as condition precedent to, Tenant’s agreement to
attorn to any such Transferee, Transferee shall be deemed to have assumed all terms, covenants, and
conditions of the Lease to be observed or performed by Landlord from the date on which the
Transferee succeeds to Landlord’s interests under the Lease; provided that the liability of any
Transferee to Tenant under the terms of the Lease shall be limited in the same manner as Lender’s
liability is limited under Section 5.

     5. Lender as Landlord. If Lender shall succeed to the interest of Landlord under the
Lease, Lender shall be bound to Tenant under all the terms, covenants and conditions of the Lease,
and Tenant shall, from the date of Lender’s succession to the Landlord’s interest under the Lease,
have the same remedies against Lender for breach of the Lease that Tenant would have had under the
Lease against Landlord; provided, however, that despite anything to the

EXHIBIT M-2

 

 

contrary in this Agreement or the Lease, Lender, as successor to the Landlord’s interest,
shall not be:

               (a) liable for any act or omission of any previous landlord (including Landlord),
provided that the foregoing shall not be construed to limit Tenant’s right to possession of
the Leased Premises for the entire term of the Lease, as extended, on the terms and
conditions of the Lease;

               (b) subject to any offsets or defenses which Tenant might have had against any previous
landlord (including Landlord) relating to any event or occurrence before the date of
attornment. The foregoing shall not limit either (a) Tenant’s right to exercise against
successor landlord any offset right otherwise available to Tenant because of events
occurring after the date of attornment, or (b) successor landlord’s obligation to correct
any conditions that existed as of the date of attornment and that violate successor
landlord’s obligations as landlord under the Lease;

               (c) unless actually received by Lender, bound by any rent or additional rent that
Tenant might have paid for more than one month in advance to any prior landlord (including
Landlord), other than, and only to the extent of, prepayments (if any) expressly required
under the Lease; or

               (d) bound by an amendment or modification of the Lease which would materially adversely
affect any right of Landlord under the Lease made without Lender’s written consent, which
consent shall not be unreasonably withheld, conditioned or delayed, except for any amendment
or modification evidencing Tenant’s exercise of any rights expressly granted to Tenant in
the Lease so long as such amendment or modification reflects the terms and conditions
provided with regards to such rights as reflected in the Lease. Notwithstanding the
foregoing, any modification, amendment or waiver made or entered into between Landlord and
Tenant shall be binding as between Landlord and Tenant.

     6. Notice of Default; Right To Cure. Tenant agrees to give Lender prompt written
notice of any known default by Landlord under the Lease. Tenant agrees that, before Tenant
exercises any of its rights or remedies under the Lease, Lender shall have the right, but not the
obligation, to cure the default within the same time given Landlord in the lease to cure the
default, plus an additional thirty (30) days. Tenant agrees that the cure period shall be extended
by the time reasonably necessary for Lender to commence foreclosure proceedings and to obtain
possession of the Mortgage Premises, provided that this sentence shall not apply if the breach or
default by Landlord poses an immediate threat to the health, safety or welfare of Tenant’s
employees, customers or invitees at the Leased Premises, provided further that:

               (a) Lender shall notify Tenant of Lender’s intent to effect its remedy within thirty
(30) days after receipt of Tenant’s notice;

               (b) Lender initiates immediate steps to foreclose on or to recover possession of the
Mortgage Premises;

               (c) Lender initiates legal proceedings to appoint a receiver for the Mortgage Premises
or to foreclose on or recover possession of the Mortgage Premises within the thirty (30) day
period; and

               (d) Lender prosecutes such proceedings and remedies with due diligence and continuity
to completion. 

     Tenant also agrees to its use its commercially reasonable efforts to give Lender notice of any
casualty damage to the Mortgage Premises, but Tenant’s failure to provide such notice shall not be
a default under this Agreement.

     7. Assignment of Rents. If Landlord defaults in its performance of the terms of the
Loan Documents, Tenant agrees to recognize the Assignment of Rents made by Landlord to Lender and
shall pay to Lender, as assignee, from the time Lender gives Tenant written notice that Landlord is
in default under the terms of the Loan Documents, the rents under the Lease, but only those rents
that are due or that become due under the terms of the Lease after notice by

EXHIBIT M-3

 

 

Lender. Payments of rents to Lender by Tenant under the assignment of rents and Landlord’s
default shall continue until the first of the following occurs:

               (a) No further rent is due or payable under the Lease;

               (b) Lender gives Tenant written notice that the Landlord’s default under the Loan
Documents has been cured and instructs Tenant that the rents shall thereafter be payable to
Landlord; or

               (c) The lien of the Mortgage has been foreclosed and the purchaser at the foreclosure
sale (whether Lender or a Transferee) gives Tenant written notice of the foreclosure sale.
On giving written notice, the purchaser shall succeed to Landlord’s interests under the
Lease, after which time the rents and other benefits due Landlord under the Lease shall be
payable to the purchaser as the owner of the Mortgage Premises.

     8. Tenant’s Reliance. When complying with the provisions of Section 7, Tenant
shall be entitled to rely on the notices given by Lender under Section 7, and Landlord
agrees to release, relieve, protect and indemnify Tenant from and against any and all loss, claim,
damage, or liability (including reasonable attorney’s fees) arising out of Tenant’s compliance with
such notice.

     Tenant shall be entitled to full credit under the Lease for any rents paid to Lender in
accordance with Section 7 to the same extent as if such rents were paid directly to
Landlord. Any dispute between Lender (or Lender’s Transferee) and Landlord as to the existence of a
default by Landlord under the terms of the Mortgage, the extent or nature of such default, or
Lender’s right to foreclosure of the Mortgage, shall be dealt with and adjusted solely between
Lender (or Transferee) and Landlord, and Tenant shall not be made a party to any such dispute
(unless required by law).

     9. Lender’s Status. Nothing in this Agreement shall be construed to be an agreement
by Lender to perform any covenant of the Landlord under the Lease unless and until it obtains title
to the Mortgage Premises by power of sale, judicial foreclosure, or deed in lieu of foreclosure, or
obtains possession of the Mortgage Premises under the terms of the Loan Documents.

     10. Cancellation of Lease. Tenant agrees that it will not cancel, terminate, or
surrender the Lease, except at the normal expiration of the Lease term or as provided in the Lease,
or except as otherwise provided in Section 5 above, enter into any agreement, amendment, or
modification of the Lease except any agreement, amendment, or modification contemplated by or
provided by the terms of the Lease unless Lender gives its prior written consent, which shall not
be unreasonably withheld, conditioned or delayed; provided, however, that no Lender consent shall
be required pursuant to a termination permitted under the Lease.

     11. Special Covenants. Despite anything in this Agreement or the Lease to the
contrary, if Lender acquires title to the Mortgage Premises, Tenant agrees that: Lender shall have
the right at any time in connection with the sale or other transfer of the Mortgage Premises to
assign the Lease or Lender’s rights under it to any person or entity, and that Lender, its
officers, directors, shareholders, agents, and employees shall be released from any further
liability under the Lease arising after the date of such transfer, provided that the assignee of
Lender’s interest assumes Lender’s obligations under the Lease (including liability for all
obligations accruing prior to the date of the assignment), in writing, from the date of such
transfer.

     12. Transferee’s Liability. If a Transferee acquires title to the Mortgage Premises:

               (a) Tenant’s recourse against Transferee for default under the Lease shall be limited
to the Mortgage Premises or any sale, insurance, or condemnation proceeds from the Mortgage
Premises;

               (b) Tenant shall look exclusively to Transferee’s interests described in (a) above for
the payment and discharge of any obligations imposed on Transferee under this Agreement or
the Lease ; and

               (c) Transferee, its officers, directors, shareholders, agents, and employees are
released and relieved of any personal liability under the Lease; and

EXHIBIT M-4

 

 

               (d) Tenant shall not collect or attempt to collect any judgment out of any other
assets, or from any general or limited partners or shareholders of Transferee.

     Notwithstanding the foregoing, Tenant reserves all rights and remedies available to it in law
or in equity against the prior landlord.

     13. Transferee’s Performance Obligations. Subject to the limitations provided in
Sections 11 and 12, if a Transferee acquires title to the Mortgage Premises, the
Transferee shall perform and recognize: all tenant improvement allowance provisions, all rent-free
and rent rebate provisions, and all options and rights of offer, in addition to Landlord’s other
obligations under the Lease.

     14. Notice. All notices required by this Agreement shall be given in writing and
shall be deemed to have been duly given for all purposes when:

               (a) deposited in the United States mail (by registered or certified mail, return
receipt requested, postage prepaid); or

               (b) deposited with a nationally recognized overnight delivery service such as Federal
Express or Airborne.

     Each notice must be directed to the party to receive it at its address stated below or at such
other address as may be substituted by notice given as provided in this Section.

     The addresses are:

	 	 	 	 	 	 	 
	     Lender:	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Attention:	 	 	 	 
	 	 	 	 	 

	 	 
	     Copy to:	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Attention:	 	 	 	 
	 	 	 	 	 

	 	 

	 	 	 
	     Tenant:
	 	Illumina, Inc.
	 	 	9885 Towne Centre Drive
	 	 	San Diego, CA 92121
	 	 	Attention: Christian Henry
	 	 	 
	     Copy to:
	 	Allen Matkins Leck Gamble Mallory & Natsis LLP
	 	 	501 West Broadway, 15th Floor
	 	 	San Diego, CA 92121
	 	 	Attention: Martin L. Togni, Esq.

Copies of notices sent to the parties’ attorneys or other parties are courtesy copies, and failure
to provide such copies shall not affect the effectiveness of a notice given hereunder.

     15. Miscellaneous Provisions.

          15.1 This Agreement may not be modified orally; it may be modified only by an agreement in
writing signed by the parties or their successors-in-interest. This Agreement shall inure to the
benefit of and bind the parties and their successors and assignees.

          15.2 The captions contained in this Agreement are for convenience only and in no way limit or
alter the terms and conditions of the Agreement.

     15.3 This Agreement has been executed under and shall be construed, governed, and enforced, in
accordance with the laws of the State of California except to the extent that California law is
preempted by the U.S. federal law. The invalidity or unenforceability of one or more provisions of
this Agreement does not affect the validity or enforceability of any other provisions.

EXHIBIT M-5

 

 

          15.4 This Agreement has been executed in duplicate. Lender and Tenant agree that one (1) copy
of the Agreement will be recorded.

          15.5 This Agreement shall be the entire and only agreement concerning subordination of the
Lease and the leasehold estate created by it, together with all rights and privileges of Tenant
under it, to the lien or charge of the Loan Documents and shall supersede and cancel, to the extent
that it would affect priority between the Lease and the Loan Documents, any previous subordination
agreements, including provisions, if any, contained in the Lease that provide for the subordination
of the Lease and the leasehold estate created by it to a deed of trust or mortgage.

          15.6 This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which copies, taken together,
shall constitute but one and the same instrument. Signature and acknowledgment pages may be
detached from the copies and attached to a single copy of this Agreement to physically form one
original document, which may be recorded without an attached copy of the Lease.

          15.7 If any legal action or proceeding is commenced to interpret or enforce the terms of this
Agreement or obligations arising out of it, or to recover damages for the breach of the Agreement,
the party prevailing in such action or proceeding shall be entitled to recover from the
non-prevailing party or parties all reasonable attorneys’ fees, costs, and expenses it has
incurred.

          15.8 Unless the context clearly requires otherwise, (a) the plural and singular numbers will
each be deemed to include the other; (b) the masculine, feminine, and neuter genders will each be
deemed to include the others; (c) “shall,” “will,” “must,” “agrees,” and “covenants” are each
mandatory; (d) “may” is permissive; (e) “or” is not exclusive; and (f) “includes” and “including”
are not limiting.

(Signature Page Follows)

EXHIBIT M-6

 

 

Executed on the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	[
	 	 	 	],	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 

	 	a [
	 	 	 	]	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By;	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 	 	 
	 	 	ILLUMINA, INC.,

a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Accepted and Agreed To:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BMR-9865 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BIOMED REALTY, L.P.,

a Maryland limited partnership

its Member
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

EXHIBIT M-7

 

 

ACKNOWLEDGMENTS

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On                                         before me,
                                   , a Notary Public, personally
appeared                                         , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 
	 

	 	 
	 

	 	Signature of Notary Public

(This area for official notarial seal)

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On                                          before me,
                      
               , a Notary Public, personally
appeared                                         , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 
	 

	 	 
	 

	 	Signature of Notary Public

(This area for official notarial seal)

EXHIBIT M-8

 

 

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On
                                         before me,
              
               , a Notary Public, personally
appeared                                         , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 
	 

	 	 
	 

	 	Signature of Notary Public

(This area for official notarial seal)

EXHIBIT M-9

 

 

EXHIBIT A

LEGAL DESCRIPTION

(See Attached)

EXHIBIT
M-10

 

 

SCHEDULE 1

DIVERSIFIED BUILDING PREMISES: RENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	Expiration	 	Square	 	Annual	 	 	 	 	 	 	 	 	 	Monthly
	StartDate	 	Date	 	feet	 	$/SF	 	Annual Rent	 	Monthly Rent	 	$/SF
	 
	Execution

	 	8/17/2007
	 	 	4,400	 	 	$	37.12	 	 	$	163,346.99	 	 	$	13,612.25	 	 	$	3.09	 
	8/18/2007

	 	8/17/2008
	 	 	4,400	 	 	$	38.24	 	 	$	168,247.40	 	 	$	14,020.62	 	 	$	3.19	 
	8/18/2008

	 	8/17/2009
	 	 	4,400	 	 	$	39.39	 	 	$	173,294.82	 	 	$	14,441.23	 	 	$	3.28	 
	8/18/2009

	 	8/17/2010
	 	 	4,400	 	 	$	40.57	 	 	$	178,493.66	 	 	$	14,874.47	 	 	$	3.38	 
	8/18/2010

	 	8/17/2011
	 	 	4,400	 	 	$	41.78	 	 	$	183,848.47	 	 	$	15,320.71	 	 	$	3.48	 
	8/18/2011

	 	8/17/2012
	 	 	4,400	 	 	$	43.04	 	 	$	189,363.93	 	 	$	15,780.33	 	 	$	3.59	 
	8/18/2012

	 	8/17/2013
	 	 	4,400	 	 	$	44.33	 	 	$	195,044.84	 	 	$	16,253.74	 	 	$	3.69	 
	8/18/2013

	 	8/17/2014
	 	 	4,400	 	 	$	45.66	 	 	$	200,896.19	 	 	$	16,741.35	 	 	$	3.80	 
	8/18/2014

	 	8/17/2015
	 	 	4,400	 	 	$	45.60	 	 	$	200,640.00	 	 	$	16,720.00	 	 	$	3.80	 
	8/18/2015

	 	8/17/2016
	 	 	4,400	 	 	$	45.60	 	 	$	200,640.00	 	 	$	16,720.00	 	 	$	3.80	 
	8/18/2016

	 	8/17/2017
	 	 	4,400	 	 	$	47.88	 	 	$	210,672.00	 	 	$	17,556.00	 	 	$	3.99	 
	8/18/2017

	 	8/17/2018
	 	 	4,400	 	 	$	47.88	 	 	$	210,672.00	 	 	$	17,556.00	 	 	$	3.99	 
	8/18/2018

	 	8/17/2019
	 	 	4,400	 	 	$	50.27	 	 	$	221,205.60	 	 	$	18,433.80	 	 	$	4.19	 
	8/18/2019

	 	8/17/2020
	 	 	4,400	 	 	$	50.27	 	 	$	221,205.60	 	 	$	18,433.80	 	 	$	4.19	 
	8/18/2020

	 	8/17/2021
	 	 	4,400	 	 	$	52.79	 	 	$	232,265.88	 	 	$	19,355.49	 	 	$	4.40	 
	8/18/2021

	 	8/17/2022
	 	 	4,400	 	 	$	52.79	 	 	$	232,265.88	 	 	$	19,355.49	 	 	$	4.40	 
	8/18/2022

	 	8/17/2023
	 	 	4,400	 	 	$	55.43	 	 	$	243,879.17	 	 	$	20,323.26	 	 	$	4.62	 
	8/18/2023

	 	Initial

Expiration Date
	 	 	4,400	 	 	$	55.43	 	 	$	243,879.17	 	 	$	20,323.26	 	 	$	4.62	 

SCHEDULE 1-1

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	Lease of Premises
	 	 	2	 
	 
	 	 	 	 	 	 
	2.

	 	Basic Lease Provisions
	 	 	2	 
	 
	 	 	 	 	 	 
	3.

	 	Term
	 	 	4	 
	 
	 	 	 	 	 	 
	4.

	 	Landlord’s Construction Work and Tenant Improvements
	 	 	4	 
	 
	 	 	 	 	 	 
	5.

	 	Possession and Commencement Date
	 	 	7	 
	 
	 	 	 	 	 	 
	6.

	 	Rent
	 	 	9	 
	 
	 	 	 	 	 	 
	7.

	 	Rent Adjustments
	 	 	10	 
	 
	 	 	 	 	 	 
	8.

	 	Taxes
	 	 	10	 
	 
	 	 	 	 	 	 
	9.

	 	[Intentionally Omitted]
	 	 	12	 
	 
	 	 	 	 	 	 
	10.

	 	Security Deposit
	 	 	12	 
	 
	 	 	 	 	 	 
	11.

	 	Use
	 	 	14	 
	 
	 	 	 	 	 	 
	12.

	 	Diversified Lease and Subdivision
	 	 	15	 
	 
	 	 	 	 	 	 
	13.

	 	Brokers
	 	 	16	 
	 
	 	 	 	 	 	 
	14.

	 	Holding Over
	 	 	16	 
	 
	 	 	 	 	 	 
	15.

	 	Property Management Fee
	 	 	17	 
	 
	 	 	 	 	 	 
	16.

	 	Condition of Premises
	 	 	17	 
	 
	 	 	 	 	 	 
	17.

	 	Regulations and Parking and Recreation Facilities
	 	 	17	 
	 
	 	 	 	 	 	 
	18.

	 	Utilities and Services
	 	 	18	 
	 
	 	 	 	 	 	 
	19.

	 	Alterations
	 	 	20	 
	 
	 	 	 	 	 	 
	20.

	 	Repairs and Maintenance
	 	 	22	 
	 
	 	 	 	 	 	 
	21.

	 	Liens
	 	 	24	 
	 
	 	 	 	 	 	 
	22.

	 	Indemnification and Exculpation
	 	 	25	 
	 
	 	 	 	 	 	 
	23.

	 	Insurance; Waiver of Subrogation
	 	 	26	 
	 
	 	 	 	 	 	 
	24.

	 	Damage or Destruction
	 	 	27	 
	 
	 	 	 	 	 	 
	25.

	 	Eminent Domain
	 	 	29	 
	 
	 	 	 	 	 	 
	26.

	 	Defaults and Remedies
	 	 	29	 
	 
	 	 	 	 	 	 
	27.

	 	Assignment or Subletting
	 	 	33	 
	 
	 	 	 	 	 	 
	28.

	 	Attorneys’ Fees
	 	 	35	 
	 
	 	 	 	 	 	 
	29.

	 	[Intentionally Omitted]
	 	 	35	 
	 
	 	 	 	 	 	 
	30.

	 	Definition of Landlord
	 	 	35	 
	 
	 	 	 	 	 	 
	31.

	 	Estoppel Certificate
	 	 	36	 
	 
	 	 	 	 	 	 
	32.

	 	Joint and Several Obligations
	 	 	36	 

 

 

	 	 	 	 	 	 	 
	33.

	 	Limitation of Landlord’s Liability
	 	 	36	 
	 
	 	 	 	 	 	 
	34.

	 	Premises Control by Landlord
	 	 	37	 
	 
	 	 	 	 	 	 
	35.

	 	Quiet Enjoyment
	 	 	37	 
	 
	 	 	 	 	 	 
	36.

	 	Subordination and Attornment
	 	 	38	 
	 
	 	 	 	 	 	 
	37.

	 	Surrender
	 	 	39	 
	 
	 	 	 	 	 	 
	38.

	 	Waiver and Modification
	 	 	39	 
	 
	 	 	 	 	 	 
	39.

	 	Waiver of Jury Trial and Counterclaims
	 	 	39	 
	 
	 	 	 	 	 	 
	40.

	 	Hazardous Materials
	 	 	39	 
	 
	 	 	 	 	 	 
	41.

	 	Miscellaneous
	 	 	41	 
	 
	 	 	 	 	 	 
	42.

	 	Option to Extend Term
	 	 	42	 
	 
	 	 	 	 	 	 
	43.

	 	Tenant’s Authority
	 	 	44	 
	 
	 	 	 	 	 	 
	44.

	 	Landlord’s Authority
	 	 	44	 
	 
	 	 	 	 	 	 
	45.

	 	Confidentiality
	 	 	44	 
	 
	 	 	 	 	 	 
	46.

	 	Excavation
	 	 	44	 
	 
	 	 	 	 	 	 
	47.

	 	Telecommunications Equipment
	 	 	44	 
	 
	 	 	 	 	 	 
	48.

	 	Access to Premises
	 	 	44	 
	 
	 	 	 	 	 	 
	49.

	 	Secured Areas
	 	 	45Unassociated Document

    EXHIBIT
      10.1

    

    PURCHASE
      AND SALE AGREEMENT

     

    Dated
      as
      of May 1, 2007

     

    Between

    

     

    GSC
      INVESTMENT FUNDING II LLC

     

    as
      Buyer

    

     

    and

    

     

    GSC
      INVESTMENT CORP.

     

    as
      Seller

    

    
      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

     

    TABLE
      OF CONTENTS

     

     

    

      
        	
                ARTICLE
                  I GENERAL

              	
                1

              
	
                 

              	Section 1.1	
                Certain
                  Defined Terms.

              	
                1

              
	
                 

              	Section 1.2	
                Other
                  Definitional Provisions.

              	
                2

              
	 	 
	
                ARTICLE
                  II SALE AND CONVEYANCE

              	
                3

              
	
                 

              	Section 2.1	
                Sale.

              	
                3

              
	
                 

              	Section 2.2	
                Assignments,
                  Etc.

              	
                4

              
	 	 
	
                ARTICLE
                  III PURCHASE PRICE AND PAYMENT; MONTHLY REPORT

              	
                4

              
	
                 

              	Section 3.1	
                Purchase
                  Price.

              	
                4

              
	
                 

              	Section 3.2	
                Payment
                  of Purchase Price.

              	
                4

              
	 	 
	
                ARTICLE
                  IV REPRESENTATIONS AND WARRANTIES

              	
                5

              
	
                 

              	Section 4.1	
                Seller’s
                  Representations and Warranties.

              	
                5

              
	
                 

              	Section 4.2	
                Representations
                  and Warranties of the Buyer.

              	
                8

              
	 	 
	
                ARTICLE
                  V COVENANTS

              	
                9

              
	
                 

              	Section 5.1	
                Seller
                  Covenants.

              	
                9

              
	 	 
	
                ARTICLE
                  VI REPURCHASE OF ORIGINATOR COLLATERAL DEBT

              	
                13

              
	
                 

              	Section 6.1	
                Mandatory
                  Repurchase of Ineligible Collateral Debt Obligations

              	
                13

              
	 	 
	
                ARTICLE
                  VII CONDITIONS PRECEDENT

              	
                13

              
	
                 

              	Section 7.1	
                Conditions
                  to the Buyer’s Obligations Regarding Originator Collateral Debt
                  Obligations.

              	
                13

              
	 	 
	
                ARTICLE
                  VIII TERM AND TERMINATION

              	
                14

              
	
                 

              	Section 8.1	
                Termination.

              	
                14

              
	 	 
	
                ARTICLE
                  IX MISCELLANEOUS PROVISIONS

              	
                14

              
	
                 

              	Section 9.1	
                Amendment.

              	
                14

              
	
                 

              	Section 9.2	
                Governing
                  Law.

              	
                14

              
	
                 

              	Section 9.3	
                Notices.

              	
                15

              
	
                 

              	Section 9.4	
                Severability
                  of Provisions.

              	
                15

              
	
                 

              	Section 9.5	
                Assignment.

              	
                15

              
	
                 

              	Section 9.6	
                Further
                  Assurances.

              	
                16

              
	
                 

              	Section 9.7	
                No
                  Waiver; Cumulative Remedies.

              	
                17

              
	
                 

              	Section 9.8	
                Counterparts.

              	
                17

              
	
                 

              	Section 9.9	
                Binding
                  Effect; Third-Party Beneficiaries.

              	
                17

              
	
                 

              	Section 9.10	
                Merger
                  and Integration.

              	
                17

              
	
                 

              	Section 9.11	
                Headings.

              	
                17

              
	
                 

              	Section 9.12	
                Schedules
                  and Exhibits.

              	
                17

              
	
                 

              	Section 9.13	
                Merger,
                  Consolidation or Assumption of Obligations of the Seller.

              	
                17

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

              	Section 9.14	
                Taxes.

              	
                18

              
	
                 

              	Section 9.15	
                Indemnities
                  by Seller

              	
                18

              
	
                 

              	Section 9.16	
                No
                  Petition.

              	
                20

              
	 	 	 	 
	 	 	 	 
	Schedule
                I 	Schedule
                of Collateral
                Debt Obligations	 
	Schedule
                II	Tradenames,
                Fictitious
                Names and “Doing Business As” Names	 
	 	 	 	 
	Exhibit
                A	Form of
                Assignment	 

      

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    

       

      PURCHASE
        AND SALE AGREEMENT

       

      PURCHASE
        AND SALE AGREEMENT, dated as of May 1, 2007 by and between GSC INVESTMENT
        CORP.,
        a Maryland corporation, as seller (the “Seller”),
        and
        GSC INVESTMENT FUNDING II LLC, a Delaware limited liability company, as buyer
        (the “Buyer”).

       

      W I T N E S S E T H:

       

      WHEREAS,
        the Buyer desires to purchase from the Seller and the Seller desires to sell
        to
        the Buyer certain securities and loans originated or purchased by the Seller
        in
        its normal course of business, together with, among other things, the related
        rights of payment thereunder and the interest of the Seller in the related
        property and other interests securing the payments to be made under such
        securities and loans.

       

      NOW,
        THEREFORE, it is hereby agreed by and between the Buyer and the Seller as
        follows:

       

       

      ARTICLE
        I

      GENERAL

       

      Section
        1.1 Certain
        Defined Terms.

       

      Certain
        capitalized terms used throughout this Agreement (as defined hereunder) are
        defined above or in this Section
        1.1.
        In
        addition, capitalized terms used but not defined herein have the meanings,
        mutatis
        mutandis,
        given to
        such terms in the Credit Agreement (as defined hereunder).

       

      “Agreement”
means
        this Purchase and Sale Agreement, as the same shall be amended, supplemented,
        restated or modified from time to time.

       

      “Buyer”
is
        defined in preamble.

       

      “Credit
        Agreement”
means
        that certain Credit Agreement, dated as of May 1, 2007, by and among the
        Buyer,
        as borrower thereunder, GSCP (NJ), L.P., as Servicer, GSC Investment Corp.,
        as
        Performance Guarantor, the “Lenders” and “Managing Agents” from time to time
        party thereto and Deutsche Bank AG, New York Branch as administrative agent,
        as
        the same may be amended, supplemented, restated or modified from time to
        time.

       

      “Eligible
        Collateral Debt Obligation” means on any date of determination, an
        Originator Collateral Debt Obligation which satisfies the requirements of
        a
“Collateral Debt Obligation” as defined in the Credit Agreement.

       

      
        “Ineligible
          Collateral Debt Obligation” is defined in Section 6.1.

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      “Originator
        Collateral Debt Obligation” means any security or loan offered for sale by
        the Originator to the Buyer pursuant to this Agreement.

       

      “Purchase”
        means any transfer made hereunder pursuant to Section 2.1.

       

      “Purchase
        Date”
means
        the date of this Agreement. 

       

      “Purchase
        Price”
is
        defined in Section
        3.1.

       

      “Purchased
        Collateral Debt Obligation” means any security or loan sold or purported to
        be sold by the Originator to the Buyer pursuant to this Agreement.

       

      

        “Repurchase
          Price” means, for any Ineligible Collateral Debt Obligation repurchased by
          the Seller pursuant to Section 6.1, an amount equal to (x) the original
          Purchase
          Price in respect of such Originator Collateral Debt Obligation plus (y)
          all
          accrued and unpaid interest on such Originator Collateral Debt Obligation
          minus
          (z) all Collections received by the Buyer (or its assigns) in respect of
          such
          Originator Collateral Debt Obligation.

      

       

      “Sale
        Documents:
        is
        defined in Section
        4.1(c).

       

      “Schedule
        of Collateral Debt Obligations” is defined in Section
        2.1(b).

       

      “Seller”
is
        defined in the preamble.

       

      

        “Substitute
          Collateral Debt Obligation” means any Eligible Collateral Debt Obligation
          which is substituted for an Ineligible Collateral Debt Obligation pursuant
          to
          Section 6.1, which satisfies each of the following conditions: (a) the
          aggregate
          Outstanding Principal Balance of such Eligible Collateral Debt Obligation
          shall
          be equal to or greater than the Outstanding Principal Balance of the Originator
          Collateral Debt Obligation to be replaced; (b) all representations and
          warranties of the Seller contained in Section 4.1 shall be true and correct
          as
          of the Substitution Date of any such Substitute Collateral Debt Obligation
          and
          (c) the substitution of any Substitute Collateral Debt Obligation does
          not cause
          an Amortization Event, Default or Event of Default to occur under the Credit
          Agreement.

         

        “Substitution
          Date” means any date on which the Seller transfers a Substitute Collateral
          Debt Obligation to the Buyer.

      

       

      Section
        1.2 Other
        Definitional Provisions.

       

      The
        words
“hereof,” “herein” and “hereunder” and words of similar import when used in this
        Agreement or any Sale Document shall refer to this Agreement as a whole and
        not
        to any particular provision of this Agreement; and Section, Subsection, Schedule
        and Exhibit references contained in this Agreement are references to Sections,
        Subsections, Schedules and Exhibits in or to this Agreement unless otherwise
        specified.

       

      In
        the
        event that any term or provision contained herein shall conflict with or
        be
        inconsistent with any term or provision contained in the Credit Agreement,
        the
        terms and provisions contained herein shall govern with respect to this
        Agreement.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE
        II

      SALE
        AND CONVEYANCE

       

      Section
        2.1 Sale.

       

      (a)  On
        the
        Purchase Date, the Seller will sell, transfer, assign and set over and otherwise
        convey to the Buyer and the Buyer will purchase from the Seller, without
        recourse, all right, title and interest of the Seller in, to and under the
        following property, whether now existing or hereafter created or
        acquired:

       

      (i)  the
        Originator Collateral Debt Obligations identified on the applicable Schedule
        of
        Collateral Debt Obligations delivered by the Seller to the Buyer at least
        one
        (1) Business Day
        before
        the requested Purchase Date, together with all monies due or to become
        due in payment of such Originator Collateral Debt Obligations on and after
        such
        Purchase Date;

       

      (ii)  the
        Related Property securing such Originator Collateral Debt Obligations, including
        all Proceeds from any sale or other disposition of such Related
        Property;

       

      (iii)  the
        Collateral Debt Obligation Documents related to such Originator Collateral
        Debt
        Obligations;

       

      (iv)  all
        Collections and all other payments made or to be made in the future with
        respect
        to such Originator Collateral Debt Obligations or by the Obligor thereunder
        and
        under any guarantee or similar credit enhancement with respect to such
        Originator Collateral Debt Obligations; and

       

      (v)  all
        income
        and Proceeds of the foregoing.

       

      (b)  The
        Seller
        further agrees to deliver to the Buyer a computer file or microfiche list
        containing a true and complete list of all Originator Collateral Debt
        Obligations, identified by account number and Outstanding Obligation Balance
        as
        of the Purchase Date (as supplemented or modified from time to time in
        accordance with the provisions hereof, the “Schedule
        of Collateral Debt Obligations”).
        Such
        file or list shall be marked as Schedule
        I
        to this
        Agreement, shall be delivered to the Buyer as confidential and proprietary,
        and
        is hereby incorporated into and made a part of this Agreement.

       

      (c)  In
        connection with the sale of the Originator Collateral Debt Obligations, the
        Seller further agrees that it will, at its own expense, indicate clearly
        and
        unambiguously in its computer files, on or prior to the Purchase Date, that
        such
        Originator Collateral Debt Obligations have been sold to the Buyer pursuant
        to
        this Agreement.

       

      (d)  It
        is the
        intention of the parties hereto that the conveyance of the Originator Collateral
        Debt Obligations by the Seller to the Buyer as provided in this Section
        2.1
        be, and
        be construed as, an absolute sale, without recourse, of the Originator
        Collateral Debt Obligations by the Seller to the Buyer. Furthermore, it is
        not
        intended that such conveyance be deemed a pledge of the Originator Collateral
        Debt Obligations by the Seller to the Buyer to secure a debt or other obligation
        of the Seller. If, however, notwithstanding the intention of the parties,
        the
        conveyance 

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      provided
        for in this Section
        2.1
        is
        determined, for any reason, not to be an absolute sale, then the parties
        intend
        that this Agreement shall be deemed to be a “security agreement” within the
        meaning of Article 9 of the UCC and the Seller hereby grants to the Buyer
        a
“security interest” within the meaning of Article 9 of the UCC in all of the
        Seller’s right, title and interest in and to the property enumerated in
clause
        (a)
        above,
        now existing and hereafter created, in an amount equal to the aggregate Purchase
        Price and each of the Seller’s other payment obligations under this
        Agreement.

       

      Section
        2.2 Assignments,
        Etc.

       

      (a)  The
        Seller
        shall, on or prior to the Purchase Date with respect to the Originator
        Collateral Debt Obligations, execute and deliver to the Buyer a written
        assignment from Seller to the Buyer substantially in the form of Exhibit
        A
        hereto.
        From and after the Purchase Date, such Originator Collateral Debt Obligations
        and related interests and property shall be deemed to be part of the Purchased
        Collateral Debt Obligations hereunder.

       

      (b)  Covenants
        of the Seller In Connection With Additions.
        As of
        the Purchase Date with respect to any Originator Collateral Debt Obligations
        to
        be acquired by the Buyer, the Seller shall:

       

      (i)  be
        deemed
        to represent and warrant as follows: (A) each such Originator Collateral
        Debt
        Obligation was, as of the Purchase Date, an Eligible Collateral Debt Obligation,
        (B) no selection procedures believed by the Seller to be adverse to the interest
        of the Buyer were utilized in selecting such Originator Collateral Debt
        Obligations from the available securities and loans in the Seller’s portfolio
        and (C) as of the Purchase Date, (x) no Insolvency Event with respect to
        the
        Seller has occurred, and (y) the sale of such Originator Collateral Debt
        Obligations to the Buyer has not been made in contemplation of the occurrence
        of
        any Insolvency Event with respect to the Seller; and

       

      (ii)  ensure
        that all financing statements or other similar instruments or documents
        necessary under the UCC (or any comparable law) of all appropriate jurisdictions
        to perfect Buyer’s ownership interest in the Originator Collateral Debt
        Obligations have been duly filed.

       

       

      ARTICLE
        III

      PURCHASE
        PRICE AND PAYMENT; MONTHLY REPORT

       

      Section
        3.1 Purchase
        Price.

       

      The
        purchase price for each Originator Collateral Debt Obligation sold to the
        Buyer
        by the Seller under this Agreement (the “Purchase
        Price”)
        shall
        be the fair market value thereof as determined by the Buyer and Seller, which
        may be the Seller’s acquisition cost (if recently acquired) and shall be
        determined and fixed prior to such purchase.

       

      Section
        3.2 Payment
        of Purchase Price.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      (a)  The
        Purchase Price shall be paid by the Buyer on the Purchase Date in cash in
        an
        amount of $25,271,118.58, and by means of a capital contribution by the Seller
        to the Buyer for the remainder of the Purchase Price.

       

      (b)  All
        cash
        payments in respect of the Purchase Price of any Originator Collateral Debt
        Obligation sold hereunder shall be made not later than 3:30 p.m. (New York
        City
        time) on the date specified therefor in lawful money of the United States
        in
        same day funds by depositing such amounts in the bank account designated
        in
        writing by the Seller to the Buyer.

       

       

      ARTICLE
        IV

      REPRESENTATIONS
        AND WARRANTIES

       

      Section
        4.1 Seller’s
        Representations and Warranties.

       

      The
        Seller
        hereby represents and warrants to the Buyer, as of the Purchase Date and
        each
        Substitution Date, that:

       

      (a)  Organization
        and Good Standing.
        The
        Seller is a Maryland corporation duly organized, validly existing, and in
        good
        standing under the laws of the jurisdiction of its formation, and has full
        power, authority and legal right to own or lease its properties and conduct
        its
        business as such business is presently conducted.

       

      (b)  Due
        Qualification.
        The
        Seller is qualified to do business as a corporation, is in good standing,
        and
        has obtained all licenses and approvals as required under the laws of all
        jurisdictions in which the ownership or lease of its property or the conduct
        of
        its business (other than the performance of its obligations hereunder) requires
        such qualification, standing, license or approval, except to the extent that
        the
        failure to so qualify, maintain such standing or be so licensed or approved
        would not have an adverse effect on the interests of the Buyer. The Seller
        is
        qualified to do business as a corporation, is in good standing, and has obtained
        all licenses and approvals as required under the laws of all states in which
        the
        performance of its obligations pursuant to this Agreement requires such
        qualification, standing, license or approval and where the failure to qualify
        or
        obtain such license or approval would have a Material Adverse Effect on its
        ability to perform hereunder or under any other Sale Document.

       

      (c)  Due
        Authorization.
        The
        execution and delivery of and performance under this Agreement and each other
        document or instrument to be delivered by the Seller hereunder or in connection
        herewith (collectively, the “Sale
        Documents”),
        and
        the consummation of the transactions provided for herein and therein have
        been
        duly authorized by the Seller by all necessary action on the part of the
        Seller.

       

      (d)  No
        Conflict.
        The
        execution and delivery of this Agreement and each of the Sale Documents,
        the
        performance by the Seller of the transactions contemplated hereby and thereby
        and the fulfillment of the terms hereof and thereof will not conflict with,
        result in any breach of any of the terms and provisions of, or constitute
        (with
        or without notice or lapse of time or both) a default under the Seller’s bylaws
        or any material Contractual Obligation of the Seller.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (e)  No
        Violation.
        The
        execution and delivery of this Agreement and each of the Sale Documents,
        the
        performance of the transactions contemplated hereby and thereby and the
        fulfillment of the terms hereof and thereof will not conflict with or violate
        any Applicable Law in a manner that could reasonably be expected to have
        a
        Material Adverse Effect.

       

      (f)  No
        Proceedings.
        There
        are no proceedings or investigations pending or, to the best knowledge of
        the
        Seller, threatened against the Seller, before any Governmental Authority
        (i)
        asserting the invalidity of this Agreement or any of the Sale Documents,
        (ii)
        seeking to prevent the consummation of any of the transactions contemplated
        by
        this Agreement or any of the Sale Documents or (iii) seeking any determination
        or ruling that could reasonably be expected to have a Material Adverse
        Effect.

       

      (g)  All
        Consents Required.
        All
        material approvals, authorizations, consents, orders or other actions of
        any
        Person or of any Governmental Authority (if any) required in connection with
        the
        due execution, delivery and performance by the Seller of this Agreement and
        the
        Sale Documents have been obtained.

       

      (h)  Reports
        Accurate.
        No
        report, information, exhibit, financial statement, document, book, record
        or
        report, whether written, verbal or electronic, furnished by the Seller to
        the
        Buyer in connection with this Agreement is or was inaccurate in any material
        respect as of the date it is or was dated or as of the date so
        furnished.

       

      (i)  Solvency.
        The
        transactions contemplated under this Agreement and each Sale Document do
        not and
        will not render the Seller not Solvent.

       

      (j)  Selection
        Procedures.
        No
        procedures believed by the Seller to be materially adverse to the interests
        of
        the Buyer were utilized by the Seller in identifying and/or selecting the
        Originator Collateral Debt Obligations to be sold, assigned, transferred,
        set-over and otherwise conveyed hereunder.

       

      (k)  Taxes.
        The
        Seller has filed or caused to be filed all Tax returns required to be filed
        by
        it. The Seller has paid all Taxes and all assessments made against it or
        any of
        its property (other than any amount of Tax the validity of which is currently
        being contested in good faith by appropriate proceedings and with respect
        to
        which reserves in accordance with GAAP have been provided on the books of
        the
        Seller), and no Tax lien has been filed and, to the Seller’s knowledge, no claim
        is being asserted, with respect to any such Tax, fee or other
        charge.

       

      (l)  Agreements
        Enforceable.
        This
        Agreement and each Sale Document constitutes the legal, valid and binding
        obligation of the Seller, enforceable against the Seller in accordance with
        their respective terms, except as such enforceability may be limited by
        Insolvency Laws and except as such enforceability may be limited by general
        principles of equity (whether considered in a suit at law or in
        equity).

       

      (m)  No
        Liens.
        Each
        Originator Collateral Debt Obligation is, immediately prior to the sale
        hereunder to the Buyer, owned by the Seller free and clear of any Liens and
        upon
        the sale, transfer or assignment hereunder, the Buyer shall acquire absolute
        title to and valid ownership of each such Originator Collateral Debt Obligation,
        free and clear of any Lien (other than Permitted Liens) and no effective
        financing statement or other instrument similar in effect covering any

       

       

      
        
          
          

        

        
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      Originator
        Collateral Debt Obligation shall at any time be on file in any recording
        office
        except such as may be filed in favor of the Buyer (or the Administrative
        Agent,
        as Buyer’s assignee) in accordance with the terms of this Agreement or the
        Credit Agreement.

       

      (n)  Security
        Interest.
        As
        described in Section
        2.1(d)
        hereof,
        it is the intention of the parties hereto that the conveyance of the
Originator
        Collateral
        Debt Obligations by the Seller to the Buyer be, and be construed as an absolute
        sale without recourse. If, however, notwithstanding the intention of the
        parties, such conveyance is determined for any reason not to be an absolute
        sale, the Seller grants a security interest (as defined in the UCC) to the
        Buyer
        in the property enumerated in Section
        2.1(a),
        which is
        enforceable in accordance with the UCC upon execution and delivery of this
        Agreement. Upon the filing of UCC-1 financing statements naming the Buyer
        as
        purchaser/secured party and the Seller as seller/debtor, the Buyer shall
        have a
        first priority perfected security interest in such property. All filings
        (including, without limitation, such UCC filings) as are necessary in any
        jurisdiction to perfect the interest of the Buyer in such property have been
        made.

       

      (o)  Location
        of Offices.
        The
        Seller’s principal place of business and chief executive office and the office
        where the Seller keeps all the Records is located at the address of the Seller
        referred to in Schedule
        II hereto
        (or at
        such other locations as to which the notice and other requirements specified
        in
Section
        5.1(g)
        shall
        have been satisfied).

       

      (p)  Other
        Names.
        The
        legal name of the Seller is as set forth in this Agreement and within the
        preceding five years the Seller has not used, and the Seller currently does
        not
        use, any tradenames other than those set forth on Schedule II hereto.

       

      (q)  Value
        Given.
        The
        Purchase Price received by the Seller for each Purchased Collateral Debt
        Obligation under this Agreement constitutes reasonably equivalent value therefor
        and the transfer by the Seller thereof to the Buyer was not made for or on
        account of an antecedent debt owed by the Seller to the Buyer, and such transfer
        was not and is not voidable or subject to avoidance under any Insolvency
        Law.

       

      (r)  Accounting.
        The
        Seller will account for the transfers by it to the Buyer of interests in
        Purchased Collateral Debt Obligations under this Agreement as sales of such
        Purchased Collateral Debt Obligations in its books, records and financial
        statements (although the financial statements of the Seller and Buyer may
        be
        consolidated), in each case consistent with GAAP.

       

      (s)  Separate
        Entity.
        The
        Seller is operated as an entity with assets and liabilities distinct from
        those
        of the Buyer and any Affiliates thereof, and the Seller hereby acknowledges
        that
        the Administrative Agent and the Secured Party under the Credit Agreement
        are
        entering into the transactions contemplated by the Credit Agreement in reliance
        upon the Seller’s identity as a separate legal entity from the Buyer and from
        each such Affiliate of the Buyer.

       

      (t)  ERISA.
        The
        Seller is in compliance in all material respects with all applicable provisions
        of ERISA and has not incurred and does not expect to incur any liabilities
        (except for premium payments arising in the ordinary course of business)
        payable
        to the Pension Benefit Guaranty Corporation under ERISA.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (u)  Investment
        Company Act.
        (i)
        The
        Seller is registered as a “business development company” within the meaning of
        the Investment Company Act of 1940, as amended (the “1940
        Act”);
        and

       

      (ii)  The
        business and other activities of the Seller do not now and will not at any
        time
        result in any violations, with respect to the Seller, of the provisions of
        the
        1940 Act or any rules, regulations or orders issued by the SEC
        thereunder.

       

      (v)  Government
        Regulations.
        The
        Seller is not engaged in the business of extending credit for the purpose
        of
“purchasing” or “carrying” any “margin security,” as such terms are defined in
        Regulation U of the Federal Reserve Board as now and from time to time hereafter
        in effect. No portion of the proceeds of the sale of Original Collateral
        Debt
        Obligations hereunder will be used, directly or indirectly, for the purpose
        of
        purchasing or carrying any Margin Stock, for the purpose of reducing or retiring
        any indebtedness that was originally incurred to purchase or carry any Margin
        Stock or for any other purpose that might cause any portion of such proceeds
        to
        be considered a “purpose credit” within the meaning of Regulation T, U or X of
        the Federal Reserve Board. The Seller will not take or permit to be taken
        any
        action that might cause any Sale Document to violate any regulation of the
        Federal Reserve Board.

       

      (w)  Eligibility
        of Originator
        Collateral Debt Obligations.
        As of
        the Purchase Date and any Substitution Date, the Schedule of Collateral Debt
        Obligations delivered on such date is a complete and accurate listing in
        all
        material respects of all the Originator Collateral Debt Obligations transferred
        hereunder as of such date, and the information contained therein with respect
        to
        the identity of such Originator Collateral Debt Obligations and the amounts
        owing thereunder is true and correct in all material respects as of such
        date.
        All Originator Collateral Debt Obligations transferred to the Buyer as of
        the
        Purchase Date and all Substitute Collateral Debt Obligations transferred
        to the
        Buyer as of any Substitution date will satisfy the requirements set forth
        in the
        definition of “Eligible Collateral Debt Obligation”, in each case as of the
        relevant date of transfer.

       

      The
        representations and warranties set forth in this Section
        4.1
        shall
        survive the sale, transfer and assignment of the Originator Collateral Debt
        Obligations to the Buyer. Upon discovery by the Seller or the Buyer of a
        breach
        of any of the foregoing representations and warranties, the party discovering
        such breach shall give prompt written notice thereof to the other immediately
        upon obtaining knowledge of such breach.

       

      Section
        4.2 Representations
        and Warranties of the Buyer.

       

      The
        Buyer
        hereby represents and warrants to the Seller, as of the Purchase Date,
        that:

       

      (a)  Organization
        and Good Standing.
        The
        Buyer is a Delaware limited liability company duly organized, validly existing,
        and in good standing under the laws of the jurisdiction of its formation,
        and
        has full power, authority and legal right to own or lease its properties
        and
        conduct its business as such business is presently conducted.

       

      (b)  Due
        Qualification.
        The
        Buyer is duly qualified to do business and is in good standing as a limited
        liability company, and has obtained or will obtain all necessary licenses
        and
        approvals, in each jurisdiction in which the nature of its business requires
        it
        to be so qualified.

       

       

      
        
          
          

        

        
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      (c)  Due
        Authorization.
        The
        execution and delivery of this Agreement and the consummation of the
        transactions provided for herein have been duly authorized by the Buyer by
        all
        necessary action on the part of the Buyer.

       

      (d)  No
        Conflict.
        The
        execution and delivery of this Agreement, the performance by the Buyer of
        the
        transactions contemplated hereby and the fulfillment of the terms hereof
        will
        not conflict with or result in any breach of any of the terms and provisions
        of,
        and will not constitute (with or without notice or lapse of time or both)
        a
        default under, the Buyer’s limited liability company agreement.

       

      (e)  No
        Violation.
        The
        execution and delivery of this Agreement, the performance of the transactions
        contemplated hereby and the fulfillment of the terms hereof will not conflict
        with or violate, in any material respect, any requirements of laws applicable
        to
        the Buyer.

       

      (f)  No
        Proceedings.
        There
        are no proceedings or investigations pending or, to the best knowledge of
        the
        Buyer, threatened against the Buyer, before any court, regulatory body,
        administrative agency, or other tribunal or Governmental Authority (i) asserting
        the invalidity of this Agreement, (ii) seeking to prevent the consummation
        of
        any of the transactions contemplated by this Agreement, or (iii) seeking
        any
        determination or ruling that could reasonably be expected to be adversely
        determined which would, if adversely determined, materially and adversely
        affect
        the performance by the Buyer of its obligations under this
        Agreement.

       

       

      ARTICLE
        V

      COVENANTS

       

      Section
        5.1 Seller
        Covenants.

       

      The
        Seller
        hereby covenants that:

       

      (a)  Compliance
        with Laws.
        The
        Seller will comply with all Applicable Laws with respect to it, its business,
        and properties and all Originator Collateral Debt Obligations and the Related
        Property, except where the failure to do so, individually or in the aggregate,
        could not reasonably be expected to have a Material Adverse Effect.

       

      (b)  Preservation
        of Corporate Existence.
        The
        Seller will preserve and maintain its existence, rights, franchises and
        privileges in the jurisdiction of its formation, and qualify and remain
        qualified in good standing in each jurisdiction where the failure to maintain
        such existence, rights, franchises, privileges and qualification has had,
        or
        could reasonably be expected to have, a Material Adverse Effect on its ability
        to perform its obligations hereunder or under the Sale Documents.

       

      (c)  Security
        Interests.
        Except
        as contemplated in this Agreement, the Seller will not sell, pledge, assign
        or
        transfer to any other Person, or grant, create, incur, assume or suffer to
        exist
        any Lien on any Purchased Collateral Debt Obligation. The Seller will promptly
        notify the Buyer of the existence of any Lien on any Purchased Collateral
        Debt
        Obligation and the Seller shall defend the right, title and interest of the
        Buyer and its assignees in, to and under the 

       

       

      
        
          
          

        

        
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      Purchased
        Collateral Debt Obligations, against all claims of third parties, provided,
        however,
        that
        nothing in this Section
        5.1(c)
        shall
        prevent or be deemed to prohibit the Seller from suffering to exist Permitted
        Liens upon any Purchased Collateral Debt Obligation.

       

      (d)  Delivery
        of Collections.
        Consistent with the Buyer’s ownership of the Purchased Collateral Debt
        Obligations, in the event the Seller shall receive any Collections in respect
        of
        any Purchased Collateral Debt Obligations, the Seller agrees to promptly
        pay to
        the Buyer, or an account designated by the Buyer, (but in no event later
        than
        two Business Days after receipt) such Collections. Further, on or before
        the
        related Purchase Date for any Purchased Collateral Debt Obligation, the Seller
        shall instruct the applicable Obligors or payment agents for the Purchased
        Collateral Debt Obligations to make payments in respect of such Purchased
        Collateral Debt Obligations to the Collection Account.

       

      (e)  Merger;
        Sales.
        The
        Seller shall not enter into any transaction of merger or consolidation, or
        liquidate or dissolve itself (or suffer any liquidation or dissolution),
        or,
        subject to Section
        9.13,
        be
        acquired by any Person, or convey, sell, lease or otherwise dispose of all
        or
        substantially all of its property or business, except as provided for in
        this
        Agreement.

       

      (f)  Separate
        Existence.
        The
        Seller shall take all actions required to maintain the Buyer’s status as a
        separate legal entity, including, without limitation, (i) not holding the
        Buyer
        out to third parties as an entity other than an entity with assets and
        liabilities distinct from the Seller and the Seller’s Affiliates; (ii) not
        holding itself out to be responsible for any Indebtedness or other liability
        of
        the Buyer or, other than by reason of owning equity interests of the Buyer,
        for
        any decisions or actions relating to the Buyer; (iii) preparing separate
        financial statements for the Buyer; (iv) taking such other actions as are
        necessary on its part to ensure that all corporate procedures required by
        its
        and the Buyer’s respective constituent documents are duly and validly taken; (v)
        keeping correct and complete records and books of account and minutes; and
        (vi)
        not acting in any manner that could foreseeably mislead others with respect
        to
        the Buyer’s separate identity. In addition to the foregoing, the Seller shall
        take the following actions:

       

      (i)  The
        Seller
        shall maintain corporate records, books of account, deposit accounts, and
        accounts separate from those of the Buyer.

       

      (ii)  The
        Seller
        shall maintain a principal executive office and administrative office through
        which its business is conducted separate from those of the Buyer. To the
        extent
        that the Seller and the Buyer have offices in the same location, there shall
        be
        a fair and appropriate allocation of overhead costs among them, and each
        such
        entity shall bear its fair share of such expenses.

       

      (iii)  The
        resolutions, agreements and other instruments underlying the transactions
        described in this Agreement shall be continuously maintained by the Seller
        as
        official records.

       

      (iv)  The
        Seller
        shall ensure that all material transactions between the Seller and the Buyer
        shall be only on an arm’s-length basis.

       

      (v)  The
        Seller
        shall keep its assets and its liabilities wholly separate from those of the
        Buyer.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (vi)  The
        Seller
        shall not mislead third parties by conducting or appearing to conduct business
        on behalf of Buyer or expressly or impliedly representing or suggesting that
        the
        Seller is liable or responsible for any Indebtedness of the Buyer or that
        the
        assets of the Seller are available to pay the creditors of the
        Buyer.

       

      (vii)  The
        Seller
        shall at all times have stationery and other business forms and a mailing
        address and telephone number separate from those of the Buyer.

       

      (viii)  The
        Seller
        shall at all times limit its transactions with the Buyer only to those expressly
        permitted under this Agreement, the Buyer’s limited liability company agreement
        or any Sale Document.

       

      (ix)  The
        Seller
        shall take or refrain from taking, as applicable, each of the activities
        specified or assumed in the DPW Opinion, upon which the conclusions expressed
        therein are based.

       

      (x)  The
        Seller
        shall ensure that, to the extent that it shares the same persons as officers
        or
        other employees as the Buyer, the salaries of and the expenses related to
        providing benefits to such officers or employees shall be fairly allocated
        among
        the two entities, and each entity shall bear its fair share of the salary
        and
        benefit costs associated with all such common officers and
        employees.

       

      (xi)  The
        Seller
        shall ensure that, to the extent that it jointly contracts with the Buyer
        to do
        business with vendors or service providers or to share overhead expenses,
        the
        costs incurred in so doing shall be allocated fairly among such entities,
        and
        each such entity shall bear its fair share of such costs. To the extent that
        the
        Borrower contracts or does business with vendors or service providers when
        the
        goods and services provided are partially for the benefit of any other person,
        the costs incurred in so doing shall be fairly allocated to or among such
        entities for whose benefit the goods and services are provided, and each
        such
        entity shall bear its fair share of such costs. 

       

      (g)  Change
        of Name or Jurisdiction of Seller; Records.
        The
        Seller (a) shall not change its name or jurisdiction of incorporation, without
        30 days’ prior written notice to the Buyer and the Administrative Agent; and (b)
        shall not move the location of Collateral Debt Obligation Files from the
        locations thereof on the applicable Purchase Date (except as permitted pursuant
        to the Credit Agreement), without 30 days’ prior written notice to the Buyer and
        the Administrative Agent.

       

      (h)  ERISA
        Matters.
        The
        Seller will not, if individually or in the aggregate, the following could
        reasonably be expected to have a Material Adverse Effect (a) engage or permit
        any ERISA Affiliate to engage in any prohibited transaction for which an
        exemption is not available or has not previously been obtained from the United
        States Department of Labor; (b) permit to exist any accumulated funding
        deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the
        Code, or funding deficiency with respect to any Benefit Plan other than a
        Multiemployer Plan; (c) fail to make any payments to a Multiemployer Plan
        that
        the Seller or any ERISA Affiliate may be required to make under the agreement
        relating to such Multiemployer Plan or any law pertaining thereto; (d) terminate
        any Benefit Plan so as to result 

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      in
        any
        liability; or (e) permit to exist any occurrence of any reportable event
        described in Title IV of ERISA that represents a material risk of a liability
        of
        the Seller under ERISA or the Code.

       

      (i)  Extension
        or Amendment of Purchased Collateral Debt Obligations. The Seller will not
        extend, amend or otherwise modify, the terms of any Purchased Collateral
        Debt
        Obligation in a manner inconsistent with the Borrower’s obligations to its
        assignees pursuant to the Credit Agreement. 

       

      

        (j)  Reporting.
          The Seller will maintain, for itself and each of its Affiliates, a system
          of
          accounting established and administered in accordance with GAAP, and furnish
          or
          cause to be furnished to the Administrative Agent and the Managing
          Agents:

         

        (i) Annual
          Reporting. Within 120 days after the close of each of the Seller’s fiscal years,
          unaudited financial statements (which shall include balance sheets, statements
          of income and retained earnings and a statement of cash flows) for such
          fiscal
          year, all certified by a Responsible Officer of the Seller as fairly presenting
          in all material respects the financial condition, results of operations
          and cash
          flows of the Seller in accordance with GAAP.

         

        (ii) Quarterly
          Reporting. Within 60 days
          after the close of the first three (3)  quarterly periods of each of the
          Seller’s fiscal years, balance sheets of the Seller as at the  close of
          each such period and statements of income and retained earnings and a statement
           of cash flows for the Seller for the period from the beginning of such
          fiscal year to the  end of such quarter, all certified by a Responsible
          Officer of the Seller as fairly  presenting in all material respects the
          financial condition, results of operations and cash  flows of the Seller in
          accordance with GAAP.

      

       

      (k)  Subordination
        Events.
        The
        Seller will not engage or permit any Affiliate to engage in any activities
        relating to any Obligor and/or with respect to any Purchased Collateral Debt
        Obligation that would subject a Purchased Collateral Debt Obligation to the
        risk
        of (i) equitable subordination under Section 510(c) of the Bankruptcy Code,
        or
        (ii) recharacterization as an equity security under Section 105(a) of the
        Bankruptcy Code or otherwise, as a result of the conduct of the Seller, the
        Servicer, the Investment Manager, the Buyer or any of their respective
        Affiliates.

       

      (l)  Ratings.
        The
        Seller will ensure that each Originator Collateral Debt Obligation shall
        have as
        of its Purchase Date a Moody’s Rating; provided,
        that
        if any
        Originator Collateral Debt Obligation does not have a Moody’s Assigned Rating or
        an assigned Moody’s Shadow Rating as of its Purchase Date, the Seller shall take
        any reasonable action requested by the Buyer (or the Servicer, on its behalf)
        with regards to the application or any re-application for a Moody’s Rating or a
        Moody’s Shadow Rating (as the Buyer or the Servicer, on its behalf, deems
        appropriate in its reasonable judgment), and shall pay any costs associated
        with
        such application or re-application, as the case may be.

       

      (m)  Change
        in Payment Instructions to Obligor.
        The
        Seller shall not make any change in its instructions to the Obligors or payment
        agents regarding payments on Purchased Collateral 

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      Debt
        Obligations to be made to the Collection Account, unless the Administrative
        Agent shall have given its prior written consent to such change.

       

       

      ARTICLE
        VI

      
        REPURCHASE
          OF ORIGINATOR COLLATERAL DEBT OBLIGATIONS

         

        Section
          6.1 Mandatory Repurchase of Ineligible Collateral Debt
          Obligations.

         

        (a) In
          the event of a breach of any representation or warranty set forth in Section
          4.1 with respect to a Purchased Collateral Debt Obligation (each such
          Purchased Collateral Debt Obligation, an “Ineligible Collateral Debt
          Obligation”), no later than 10 days after the earlier of (i) knowledge of
          such breach on the part of the Seller and (ii) receipt by the Seller of
          written
          notice thereof given by the Buyer, the Seller shall either (a) repurchase
          each
          such Ineligible Collateral Debt Obligation, or (b) substitute for such
          Ineligible Collateral Debt Obligation a Substitute Collateral Debt Obligation;
          provided, however, that no such repurchase shall be required to be
          made with respect to such Ineligible Collateral Debt Obligation (and such
          Purchased Collateral Debt Obligation shall cease to be an Ineligible Collateral
          Debt Obligation) if, on or before the expiration of such 10-day period,
          the
          representations and warranties in Section 4.1 with respect to such
          Ineligible Collateral Debt Obligation shall be made true and correct in
          all
          material respects with respect to such Ineligible Collateral Debt Obligation
          as
          if such Ineligible Collateral Debt Obligation had been transferred to the
          Buyer
          on such day.

         

        (b) Upon
          the Buyer’s receipt of the Repurchase Price or a Substitute Collateral Debt
          Obligation, as applicable, for an Ineligible Collateral Debt Obligation,
          the
          Buyer shall automatically and without further action be deemed to transfer,
          assign and set-over to the Seller all the right, title and interest of
          the Buyer
          in, to and under such Ineligible Collateral Debt Obligation and all monies
          due
          or to become due with respect thereto, all proceeds thereof and all rights
          to
          security for any such Ineligible Collateral Debt Obligation, and all proceeds
          and products of the foregoing, free and clear of any Lien created pursuant
          to
          this Agreement or the Credit Agreement, all of the Buyer’s right, title and
          interest in such Ineligible Collateral Debt Obligation. 

         

        (c) The
          Buyer shall, at the sole expense of the Seller, execute such documents
          and
          instruments of transfer as may be prepared by the Seller and take such
          other
          actions as shall reasonably be requested by the Seller to effect the transfer
          of
          such Ineligible Collateral Debt Obligation pursuant to this Section
          6.1.

      

       

       

      ARTICLE
        VII

      CONDITIONS
        PRECEDENT

       

      Section
        7.1 Conditions
        to the Buyer’s Obligations Regarding Originator Collateral Debt
        Obligations.

       

      The
        obligations of the Buyer to purchase Originator Collateral Debt Obligations
        from
        the Seller on the Purchase Date shall be subject to the satisfaction of the
        following conditions:

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (a)  all
        representations and warranties of the Seller contained in Section
        4.1
        shall be
        true and correct in all material respects on and as of such day as though
        made
        on and as of such date;

       

      (b)  on
        and as
        of such day, the Seller shall have performed all obligations required to
        be
        performed by it on or prior to such day pursuant to the provisions of this
        Agreement;

       

      (c)  no
        event
        has occurred and is continuing, or would result from such purchase that
        constitutes an Amortization Event, a Default or an Event of Default;
        and

       

      (d)  no
        law or
        regulation shall prohibit, and no order, judgment or decree of any federal,
        state or local court or governmental body, agency or instrumentality shall
        prohibit or enjoin, the making of any such purchase by the Buyer in accordance
        with the provisions hereof.

       

       

      ARTICLE
        VIII

      TERM
        AND TERMINATION

       

      Section
        8.1 Termination.

       

      This
        Agreement shall commence as of the date of execution and delivery hereof
        and
        shall continue in full force and effect until the occurrence of the Collection
        Date pursuant to the Credit Agreement; provided,
        however,
        that the
        termination of this Agreement pursuant to this Section
        8.1
        shall not
        discharge any Person from obligations incurred prior to any such termination
        of
        this Agreement.

       

       

      ARTICLE
        IX

      MISCELLANEOUS
        PROVISIONS

       

      Section
        9.1 Amendment.

       

      This
        Agreement and the rights and obligations of the parties hereunder may not
        be
        amended, waived or changed orally, but only by an instrument in writing signed
        by the Buyer and the Seller. The Buyer shall provide not less than ten (10)
        Business Days prior written notice of any such amendment to the Administrative
        Agent.

       

      Section
        9.2 Governing
        Law.

       

      THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY AGREES TO THE
        JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH
        OF
        THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS,
        AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
        AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
        RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      Section
        9.3 Notices.

       

      All
        notices and other communications provided for hereunder shall, unless otherwise
        stated herein, be in writing (including telex communication and communication
        by
        facsimile copy) and mailed, telexed, transmitted or delivered, as to each
        party
        hereto, at its address set forth below or at such other address as shall
        be
        designated by such party in a written notice to the other party hereto. All
        such
        notices and communications shall be effective upon receipt, or in the case
        of
        (a) notice by mail, five days after being deposited in the United States
        mail,
        first class postage prepaid, (b) notice by telex, when telexed against receipt
        of answer back, or (c) notice by facsimile copy, when verbal communication
        of
        receipt is obtained.

       

      (a)  In
        the
        case of notice to the Buyer, to:

       

      GSC
        INVESTMENT FUNDING II LLC

      12
        East
        49th
        Street,
        Suite 3200

       

      New
        York,
        New York 10017

      Attention:
        General Counsel

      Facsimile
        No.: (212) 884-6184

      Confirmation
        No.: (212) 884-6200

       

      (b)  In
        the
        case of notice to the Seller, to:

       

      GSC
        INVESTMENT CORP.

      12
        East
        49th
        Street,
        Suite 3200

       

      New
        York,
        New York 10017

      Attention:
        Thomas V. Inglesby, CEO

      Facsimile
        No.: (212) 884-6184

      Confirmation
        No.: (212) 884-6200

       

      (c)  In
        the
        case of notice to the Administrative Agent, to:

       

      DEUTSCHE
        BANK AG, NEW YORK BRANCH

      60
        Wall
        Street, 18th
        Floor

       

      New
        York,
        New York 10005

      Attention:
        Tina Gu

      Facsimile
        No.: (212) 250-0357

      Confirmation
        No.: (212) 797-5150

       

      Section
        9.4 Severability
        of Provisions.

       

      If
        any one
        or more of the covenants, agreements, provisions or terms of this Agreement
        or
        any of the Sale Documents shall for any reason whatsoever be held invalid,
        then
        such covenants, agreements, provisions, or terms shall be deemed severable
        from
        the remaining covenants, agreements, provisions, or terms of this Agreement
        and
        the Sale Documents and shall in no way affect the validity or enforceability
        of
        the other provisions of this Agreement or any of the Sale
        Documents.

       

      Section
        9.5 Assignment.

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (a)  Notwithstanding
        anything to the contrary contained herein, this Agreement may not be assigned
        by
        the Buyer or the Seller except as permitted by this Section
        9.5.
        Simultaneously with the execution and delivery of this Agreement, the Buyer
        shall assign all of its right, title and interest herein to the Administrative
        Agent as agent for the Secured Parties under the Credit Agreement as provided
        in
        the Credit Agreement, to which assignment the Seller hereby expressly consents.
        The Seller agrees that the Administrative Agent, as agent for the Secured
        Parties under the Credit Agreement, shall be a third party beneficiary hereof.
        The Administrative Agent as agent for the Secured Parties under the Credit
        Agreement may enforce the provisions of this Agreement, exercise the rights
        of
        the Buyer and enforce the obligations of the Seller hereunder following a
        Default or an Event of Default and as provided in of the Credit Agreement.
        This
        Agreement may not be assigned by the Seller except in connection with a merger
        or consolidation of the Seller with or into, or disposition of the Seller’s
        properties and assets to, another Person, provided,
        however,
        that any
        such merger, consolidation or disposition shall satisfy the requirements
        of
Section
        9.13.

       

      (b)  In
        connection with any permitted assignment of this Agreement by the Seller,
        the
        Seller shall deliver to the Buyer and the Administrative Agent an Officer’s
        Certificate that such assignment complies with this Section
        9.5,
        and
        shall cause such assignee to execute an agreement supplemental hereto, in
        form
        and substance satisfactory to the Seller, pursuant to which such assignee
        shall
        expressly assume and agree to the performance of every covenant and obligation
        of the Seller hereunder, to provide for the delivery of an Opinion of Counsel
        that such supplemental agreement is legal, valid and binding with respect
        to
        such assignee, and to take such other actions and execute such other instruments
        as may reasonably be required to effectuate such assignment.

       

      Section
        9.6 Further
        Assurances.

       

      (a)  The
        Buyer
        and the Seller agree to do and perform, from time to time, any and all acts
        and
        to execute any and all further instruments required or reasonably requested
        by
        the other party more fully to effect the purposes of this Agreement and the
        Sale
        Documents, including, without limitation, the execution of any financing
        statements, continuation statements, termination statements, releases or
        equivalent documents relating to the Purchased Collateral Debt Obligations
        for
        filing under the provisions of the UCC or other applicable laws of any
        applicable jurisdiction.

       

      (b)  If
        the
        Seller fails to perform any of its obligations hereunder, Buyer (or its assigns)
        may (but shall not be required to) perform, or cause performance of, such
        obligation, and Buyer’s (or such assigns’) costs and expenses incurred in
        connection therewith shall be payable by the Seller as provided in Section
        9.14.
        The
        Seller irrevocably authorizes Buyer (and its assigns) at any time and from
        time
        to time in the sole discretion of Buyer (or its assigns), and appoints Buyer
        (and its assigns) as its attorney(s)-in-fact, to act on its behalf (i) to
        authorize on its behalf as debtor and to file financing statements necessary
        or
        desirable in Buyer’s (or its assigns’) sole discretion to perfect and to
        maintain the perfection and priority of the interest of Buyer in the Purchased
        Collateral Debt Obligations and (ii) to file a carbon, photographic or other
        reproduction of this Agreement or any financing statement with respect to
        the
        Purchased Collateral Debt Obligations as a financing statement in such offices
        as Buyer (or its assigns) in their sole discretion deem necessary or desirable
        to perfect and to maintain the perfection and 

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      priority
        of Buyer’s interests in the Purchased Collateral Debt Obligations. This
        appointment is coupled with an interest and is irrevocable.

       

      Section
        9.7 No
        Waiver; Cumulative Remedies.

       

      No
        failure
        to exercise and no delay in exercising, on the part of the Buyer or the Seller,
        any right, remedy, power or privilege hereunder, shall operate as a waiver
        thereof; nor shall any single or partial exercise of any right, remedy, power
        or
        privilege hereunder preclude any other or further exercise thereof or the
        exercise of any other right, remedy, power or privilege. The rights, remedies,
        powers and privileges herein provided are cumulative and not exhaustive of
        any
        rights, remedies, powers and privilege provided by law.

       

      Section
        9.8 Counterparts.

       

      This
        Agreement may be executed in two or more counterparts including facsimile
        transmission thereof (and by different parties on separate counterparts),
        each
        of which shall be an original, but all of which together shall constitute
        one
        and the same instrument.

       

      Section
        9.9 Binding
        Effect; Third-Party Beneficiaries.

       

      This
        Agreement shall inure to the benefit of and the obligations thereunder shall
        be
        binding upon the parties hereto and their respective successors and permitted
        assigns. Any permitted assigns of the Buyer shall be third-party beneficiaries
        of this Agreement.

       

      Section
        9.10 Merger
        and Integration.

       

      Except
        as
        specifically stated otherwise herein, this Agreement, together with the Credit
        Agreement and the other Transaction Documents, to the extent that a party
        is a
        signatory thereto, sets forth the entire understanding of the parties relating
        to the subject matter hereof, there are no other agreements between the parties
        for transactions relating to or similar to the transactions contemplated
        by this
        Agreement, and all prior understandings, written or oral, are superseded
        by this
        Agreement. This Agreement may not be modified, amended, waived or supplemented
        except as provided herein.

       

      Section
        9.11 Headings.

       

      The
        headings herein are for purposes of reference only and shall not otherwise
        affect the meaning or interpretation of any provision hereof.

       

      Section
        9.12 Schedules
        and Exhibits.

       

      The
        schedules and exhibits attached hereto and referred to herein shall constitute
        a
        part of this Agreement and are incorporated into this Agreement for all
        purposes.

       

      Section
        9.13 Merger,
        Consolidation or Assumption of Obligations of the
        Seller.

       

      The
        Seller
        shall not consolidate with or merge into any other corporation or convey
        or
        transfer its properties and assets substantially as an entirety to any Person,
        unless:

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      (i)  the
        Person
        formed by such consolidation or into which the Seller is merged or the Person
        that acquires by conveyance or transfer the properties and assets of the
        Seller
        substantially as an entirety shall be, if the Seller is not the surviving
        entity, organized and existing under the laws of the United States of America
        or
        any State or the District of Columbia and shall expressly assume, by an
        agreement supplemental hereto, executed and delivered to the Buyer, in form
        satisfactory to the Buyer and the Administrative Agent, the performance of
        every
        covenant and obligation of the Seller hereunder (to the extent that any right,
        covenant or obligation of the Seller, as applicable hereunder, is inapplicable
        to the successor entity, such successor entity shall be subject to such covenant
        or obligation, or benefit from such right, as would apply, to the extent
        practicable, to such successor entity); and

       

      (ii)  the
        Seller
        shall have delivered to the Buyer and the Administrative Agent an Officer’s
        Certificate that such consolidation, merger, conveyance or transfer and such
        supplemental agreement comply with this Section
        9.13
        and that
        all conditions precedent herein provided for relating to such transaction
        have
        been complied with and an Opinion of Counsel that such supplemental agreement
        is
        legal, valid and binding with respect to the successor entity and that the
        entity surviving such consolidation, conveyance or transfer is organized
        and
        existing under the laws of the United States of America or any State or the
        District of Columbia.

       

      Section
        9.14 Taxes.

       

      The
        Seller
        shall pay on demand any and all stamp, sales, excise and other taxes (excluding
        income and franchise taxes of the Buyer) and fees payable or determined to
        be
        payable in connection with the execution, delivery, filing and recording
        of this
        Agreement or any agreement or other document delivered in connection with
        this
        Agreement.

       

      Section
        9.15 Indemnities
        by Seller

       

      (a)  Without
        limiting any other rights that the Buyer may have hereunder or under Applicable
        Law, the Seller hereby agrees to indemnify the Buyer and its assigns, officers,
        directors, agents and employees (each an “Indemnified Party”),
        forthwith on demand, from and against any and all damages, losses, claims,
        taxes, liabilities and related costs and expenses, including reasonable
        attorneys’ fees (which attorneys may be employees of the Buyer) and
        disbursements (all of the foregoing being collectively referred to as
“Indemnified Amounts”) awarded against or incurred by any such
        Indemnified Party or other non-monetary damages of any such Indemnified Party
        any of them arising out of out of or as a result of this Agreement or the
        acquisition, either directly or indirectly, by the Buyer of the Originator
        Collateral Debt Obligations, excluding, however: 
         

        (i) Indemnified
          Amounts to the extent that such Indemnified Amounts resulted from gross
          negligence or willful misconduct on the part of the Indemnified Party seeking
          indemnification;

         

      

       

       

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      
 

      
        (ii) Indemnified
          Amounts to the extent the same includes losses in respect of Originator
          Collateral Debt Obligations that are uncollectible on account of the insolvency,
          bankruptcy or lack of creditworthiness of the related Obligor; or

         

        (iii) taxes
          imposed by the jurisdiction in which such Indemnified Party’s principal
          executive office is located, on or measured by the overall net income of
          such
          Indemnified Party;

         

        provided,
          however, that nothing contained in this sentence shall limit the liability
          of
          the Seller or limit the recourse of Buyer to the Seller for amounts otherwise
          specifically provided to be paid by the Seller under the terms of this
          Agreement. Without limiting the generality of the foregoing indemnification,
          the
          Seller shall indemnify Buyer for Indemnified Amounts relating to or resulting
          from:

         

        (i) any
          Originator Collateral Debt Obligation treated as or represented by the
          Seller to
          be an Eligible Collateral Debt Obligation that is not at the applicable
          time an
          Eligible Collateral Debt Obligation;

         

        (i)  any
          representation or warranty made or deemed made by the Seller or any of
          its
          officers under or in connection with this Agreement, any other Sale Document
          or
          any other information or report delivered by the Seller pursuant hereto
          or
          thereto, which shall have been false or incorrect in any material respect
          when
          made or deemed made or delivered;

         

        (ii)  the
          failure by the Seller to comply with any term, provision or covenant contained
          in this Agreement or any agreement executed in connection with this Agreement,
          or with any Applicable Law with respect to any Originator Collateral Debt
          Obligation or the Collateral Debt Obligation Documents related thereto,
          or the
          nonconformity of any Originator Collateral Debt Obligation, the Related
          Property
          or the Collateral Debt Obligation Documents related thereto with any such
          Applicable Law, or any failure by the Seller to perform its duties, express
          or
          implied, with respect to any Originator Collateral Debt Obligation;

         

        (iii) any
          dispute, claim, offset or defense (other than discharge in bankruptcy of
          the
          Obligor) of the Obligor to the payment of any Originator Collateral Debt
          Obligation (including, without limitation, a defense based on such Originator
          Collateral Debt Obligation or the Collateral Debt Obligation Documents
          related
          thereto not being a legal, valid and binding obligation of such Obligor
          enforceable against it in accordance with its terms);

         

        (iv) any
          failure of Seller to perform its duties or obligations under the Originator
          Collateral Debt Obligations or in accordance with the provisions of this
          Agreement or any other Sale Document;

         

        (v) any
          investigation, litigation or proceeding related to or arising from this
          Agreement or any other Sale Document, the transactions contemplated hereby,
          the
          use of the proceeds of a purchase hereunder, the ownership of the Originator
          Collateral Debt Obligations or any other investigation, litigation or proceeding
          relating to the Seller in

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      

        which
          any
          Indemnified Party becomes involved as a result of any of the transactions
          contemplated hereby;

         

        (vi) any
          failure to vest and maintain vested in Buyer, or to transfer to Buyer,
          legal and
          equitable title to, and ownership of, any Originator Collateral Debt Obligation,
          free and clear of any Adverse Claim (except as created by the Transaction
          Documents);

         

        (vii) the
          failure of the Seller to or any of its agents or representatives to remit
          to the
          Buyer or its assignees, Collections remitted to the Seller or any such
          agent or
          representative in accordance with the terms hereof or the commingling by
          the
          Seller of any Collections;

         

        (viii) any
          action or omission by the Seller which causes the occurrence of a Subordination
          Event;

         

        (ix) any
          action or omission by Seller which reduces or impairs the rights of Buyer
          with
          respect to any Originator Collateral Debt Obligation or the value of any
          such
          Originator Collateral Debt Obligation; and

         

        (x) any
          attempt by any Person to void the purchases made hereunder under statutory
          provisions or common law or equitable action.

         

        (i)      
          (b) If for any reason the indemnification provided above in this Section
          9.15 is unavailable to the Indemnified Party or is insufficient to hold
          an
          Indemnified Party harmless, then the Seller shall contribute to the amount
          paid
          or payable by such Indemnified Party as a result of such loss, claim, damage
          or
          liability in such proportion as is appropriate to reflect not only the
          relative
          benefits received by such Indemnified Party on the one hand and the Seller,
          on
          the other hand but also the relative fault of such Indemnified Party as
          well as
          any other relevant equitable considerations.

      

       

      (b)  The
        obligations of the Seller under this Section
        9.15
        shall
        survive the removal of the Administrative Agent or any Managing Agent and
        the
        termination of this Agreement.

       

      Section
        9.16 No
        Petition.

       

      From
        the
        date hereof to and until the date which is one year and one day following
        the
        date on which all amounts due with respect to any indebtedness of the Purchaser
        shall have been paid in full in cash, the Seller shall not, directly or
        indirectly, institute or cause to be instituted against the Purchaser any
        bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding
        or
        other proceeding under any federal or state bankruptcy or similar law or
        cooperate with or encourage any other Person to take such action; provided,
        that the
        foregoing shall not in any way limit the Seller’s right to pursue any other
        creditor rights or remedies that the Seller may have under applicable law.
        The
        Seller agrees that any amounts payable by the Purchaser hereunder shall be
        payable solely to the extent that the Purchaser has funds available to make
        such
        payments in accordance with its organizational documents and the Transaction
        Documents. The provisions of this Section
        9.16
        shall
        survive the termination of this Agreement.

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      IN
        WITNESS
        WHEREOF, the Buyer and the Seller have caused this Agreement to be duly executed
        by their respective officers as of the day and year first above
        written.

       

       

       

      
        	 	GSC
                INVESTMENT FUNDING II LLC
	 	 	 	 
	 	
                By:

              	/s/ Thomas V. Inglesby
	 	 	
                

              
	 	 	Name:	Thomas V. Inglesby
	 	 	Title:	President
	 	 	 	 
	 	GSC
                INVESTMENT CORP.
	 	 	 	 
	 	
                By:

              	/s/ Thomas V. Inglesby
	 	 	
                

              
	 	 	Name:	Thomas V. Inglesby
	 	 	Title:	Chief Executive
                Officer

      

       

       

      [Purchase
        and Sale Agreement]

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        I

       

      SCHEDULE
        OF COLLATERAL DEBT OBLIGATIONS 

       

      

       

      

       

      

       

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        II

       

      TRADENAMES,
        FICTITIOUS NAMES AND “DOING BUSINESS AS” NAMES;

      LOCATION
        OF RECORDS

       

      

       

      

       

      Prior
        Name: GSC Investment LLC

       

      

       

      Location
        of Records:

       

      300
        Campus
        Drive, Suite 110

      Florham
        Park, NJ 07932-1039

       

      Principal
        Executive Offices:

       

      12
        East
        49th
        Street,
        Suite 3200

       

      New
        York,
        New York 10017

       

      

       

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A

       

      FORM
        OF
        ASSIGNMENT

       

      ASSIGNMENT,
        dated as of ____________, from GSC INVESTMENT CORP., a Maryland corporation
        (the
“Seller”),
        to GSC
        INVESTMENT FUNDING II LLC, a Delaware limited liability company (the
“Buyer”).

       

      1.  We
        refer
        to the Purchase and Sale Agreement, dated as of May 1, 2007 (as amended,
        modified, supplemented or restated from time to time, the “Agreement”),
        by and
        between the Seller and the Buyer. All capitalized terms used herein shall
        have
        the meanings set forth in the Agreement.

       

      2.  The
        Seller
        does hereby convey, set over and assign to the Buyer, without recourse, all
        of
        the Seller’s right, title and interest in and to the following, in each case
        whether now or hereafter existing or in which the Seller now has or hereafter
        acquires an interest and wherever the same may be located:

       

      (i)  the
        Originator Collateral Debt Obligations identified on the applicable Schedule
        of
        Collateral Debt Obligations delivered by the Seller to the Buyer at least
        one
        (1) Business Day before the requested Purchase Date, together with all monies
        due or to become due in payment of such Originator Collateral Debt Obligations
        on and after such Purchase Date;

       

      (ii)  the
        Related Property securing such Originator Collateral Debt Obligations, including
        all proceeds from any sale or other disposition of such Related
        Property;

       

      (iii)  the
        Collateral Debt Obligation Documents related to such Originator Collateral
        Debt
        Obligations;

       

      (iv)  all
        Supplemental Interests related to such Originator Collateral Debt
        Obligations;

       

      (v)  all
        Collections and all other payments made or to be made in the future with
        respect
        to such Originator Collateral Debt Obligations or by the Obligor thereunder
        and
        under any guarantee or similar credit enhancement with respect to such
        Originator Collateral Debt Obligations; and

       

      (vi)  all
        income
        and proceeds of the foregoing.

       

      3.  Simultaneously
        with the execution and delivery hereof the Seller has delivered to or at
        the
        direction of the Buyer such endorsements and assignments, made without recourse,
        of the Collateral Debt Obligation Files as are necessary to properly complete
        the absolute assignment of the Originator Collateral Debt Obligations to
        the
        Buyer.

       

      4.  THIS
        CERTIFICATE OF ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
        WITH
        THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CHOICE OF LAW
        PROVISIONS.

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS
        WHEREOF, the Seller has caused this Assignment to be executed by its authorized
        officer as of the date first above written.

       

       

      
        	
                 

              	
                GSC
                  INVESTMENT CORP.

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]