Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.13    
    

EXECUTED ORIGINAL  

 
 

OFFICE LEASE    
    
    EXECUTIVE COMPLEX    
    

Executive One Associates,  

 an Illinois limited partnership,  

 as Landlord,  

 and  

 CardioNet, Inc.,  

 a California corporation,  

 as Tenant.  

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE 1	 	PREMISES, BUILDING, PROJECT, AND COMMON AREAS; RENTABLE SQUARE FOOTAGE	 	3
	

ARTICLE 2	
 	

INITIAL LEASE TERM; OPTION TERM(S)	
 	

4
	

ARTICLE 3	
 	

BASE RENT	
 	

6
	

ARTICLE 4	
 	

ADDITIONAL RENT	
 	

6
	

ARTICLE 5	
 	

USE OF PREMISES	
 	

7
	

ARTICLE 6	
 	

SERVICES AND UTILITIES	
 	

8
	

ARTICLE 7	
 	

REPAIRS	
 	

9
	

ARTICLE 8	
 	

ADDITIONS AND ALTERATIONS	
 	

10
	

ARTICLE 9	
 	

COVENANT AGAINST LIENS	
 	

12
	

ARTICLE 10	
 	

INSURANCE	
 	

12
	

ARTICLE 11	
 	

DAMAGE AND DESTRUCTION	
 	

15
	

ARTICLE 12	
 	

NONWAIVER	
 	

17
	

ARTICLE 13	
 	

CONDEMNATION	
 	

17
	

ARTICLE 14	
 	

ASSIGNMENT AND SUBLETTING	
 	

18
	

ARTICLE 15	
 	

SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES	
 	

21
	

ARTICLE 16	
 	

HOLDING OVER	
 	

22
	

ARTICLE 17	
 	

ESTOPPEL CERTIFICATES	
 	

22
	

ARTICLE 18	
 	

SUBORDINATION	
 	

23
	

ARTICLE 19	
 	

DEFAULTS; REMEDIES	
 	

24
	

ARTICLE 20	
 	

COVENANT OF QUIET ENJOYMENT	
 	

26
	

ARTICLE 21	
 	

SECURITY DEPOSIT	
 	

26
	

ARTICLE 22	
 	

INTENTIONALLY OMITTED	
 	

27
	

ARTICLE 23	
 	

SIGNS	
 	

27
	

ARTICLE 24	
 	

COMPLIANCE WITH LAW	
 	

27
	

ARTICLE 25	
 	

LATE CHARGES	
 	

27
	

ARTICLE 26	
 	

LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT	
 	

28
	

ARTICLE 27	
 	

ENTRY BY LANDLORD	
 	

28
	

ARTICLE 28	
 	

TENANT PARKING	
 	

29
	

ARTICLE 29	
 	

MISCELLANEOUS PROVISIONS	
 	

29
	

ARTICLE 30	
 	

ASBESTOS DISCLOSURES	
 	

35

i

 

EXHIBITS

	A
	OUTLINE
OF PREMISES

	B
	LIST
OF OFFICE FURNITURE

	C
	FORM
OF NOTICE OF LEASE TERM DATES

	D
	RULES
AND REGULATIONS

	E
	FORM
OF TENANT'S ESTOPPEL CERTIFICATE

	F
	ASBESTOS
DISCLOSURE STATEMENT 

ii

   INDEX  

	 
	 	Page(s)

	ACM	 	35
	Additional Rent	 	6
	Alterations	 	10
	Base Building	 	11
	Base Rent	 	6
	BOMA	 	4
	Brokers	 	33
	Building	 	3
	Building Hours	 	8
	Common Areas	 	4
	Control	 	21
	Damage Termination Date	 	16
	Damage Termination Notice	 	16
	East Tower	 	1
	Force Majeure	 	31
	Holidays	 	8
	HVAC	 	8
	Initial Notice	 	31
	Landlord	 	1
	Landlord Default	 	26
	Landlord Parties	 	12
	Laws	 	27
	Lease	 	1
	Lease Commencement Date	 	4
	Lease Expiration Date	 	4
	Lease Month	 	4
	Lease Term	 	4
	Lease Year	 	4
	Lines	 	35
	Mail	 	32
	Net Worth	 	21
	Notices	 	32
	Office Furniture	 	4
	Parking Facilities	 	29
	Permitted Transfer	 	21
	Permitted Transferee	 	21
	Premises	 	3
	Project	 	3
	Renovations	 	34
	Rent	 	6
	Security Deposit	 	26
	Subject Space	 	18
	Summary	 	1
	Tenant	 	1
	Tenant Parties	 	13
	Transfer	 	20
	Transfer Notice	 	18
	 	 	 

i

 

	Transfer Premium	 	19
	Transferee	 	18
	Transfers	 	18
	West Tower	 	1

ii

EXECUTIVE COMPLEX  

 OFFICE LEASE  

        This Office Lease (the "Lease"), dated as of the date set forth in Section 1 of the Summary of Basic Lease
Information (the "Summary"), below, is made by and between EXECUTIVE ONE ASSOCIATES, an Illinois limited partnership
("Landlord"), and CARDIONET, INC., a California corporation ("Tenant"). 

SUMMARY OF BASIC LEASE INFORMATION  

	TERMS OF LEASE
 
	 	DESCRIPTION
 

	1.	 	Date:	 	February 6, 2004.
	

2.	
 	

Premises

(Article 1).	
 	

 
	

 	
 	

2.1	
 	

Building:	
 	

The Executive Complex

1010 Second Avenue

San Diego, California 92101.
	

 	
 	

2.2	
 	

Premises:	
 	

Approximately 19,929 rentable (18,030 usable) square feet of space in the aggregate, consisting of (i) 9,366 rentable (8,565 usable) square feet of space comprising the entire seventh (7th) floor of the west tower (the "West Tower") of the Building, and (ii) 10,563 rentable (9,465 useable) square feet of space comprising the entire seventh (7th) floor of the east tower (the "East
Tower") of the Building and collectively known as Suite 700, all as further set forth in Exhibit A to the Office Lease.
	

3.	
 	

Lease Term

(Article 2).	
 	

 
	

 	
 	

3.1	
 	

Length of Term:	
 	

Eighteen (18) months.
	

 	
 	

3.2	
 	

Lease Commencement Date:	
 	

March 1, 2004.
	

 	
 	

3.3	
 	

Lease Expiration Date:	
 	

The last day of the calendar month in which the 18th monthly anniversary of the Lease Commencement Date occurs.
	

4.	
 	

Base Rent

(Article 3):	
 	

$21,921.00 per month.
	

5.	
 	

Permitted Use

(Article 5):	
 	

General office use, consistent with a first-class office building (the "Permitted Use"). In addition, subject to the terms of Section 5.1 of this Lease Tenant may use a portion of the Premises, on an
ancillary basis, for light testing, assembly and usage of the Original Tenant's or a Permitted Transferee's (as those terms are defined in Sections 5.1 and 14.7 of this Lease) own products (collectively, the "Additional
Use"), which Additional Use shall be consistent with a first-class office building.
	

6.	
 	

Security Deposit

(Article 21):	
 	

$21,921.00.
	

7.	
 	

Parking Passes

(Article 28):	
 	

Thirty (30) unreserved parking passes.
	 	 	 	 	 	 	 

 

	

8.	
 	

Address of Tenant

(Section 29.18):	
 	

CardioNet, Inc.

510 Market Street

San Diego, California 92101

Attention: Mr. James Sweeney, CEO

(Prior to Lease Commencement Date)
	

 	
 	

 	
 	

 	
 	

and
	

 	
 	

 	
 	

 	
 	

CardioNet, Inc.

1010 Second Avenue

Suite 700

San Diego, California 92101

Attention: Mr. James Sweeney,

CEO (After Lease Commencement Date)
	

9.	
 	

Address of Landlord

(Section 29.18):	
 	

Executive One Associates

c/o Jupiter Realty Corporation

919 North Michigan Avenue

Suite 1500

Chicago, Illinois 60611

Attention: Mr. Jerry J. Ong
	

 	
 	

 	
 	

 	
 	

and
	

 	
 	

 	
 	

 	
 	

Jupiter Realty Corporation

919 North Michigan Avenue

Suite 1500

Chicago, Illinois 60611

Attention: Ms. Sonya Michieli
	

 	
 	

 	
 	

 	
 	

and
	

 	
 	

 	
 	

 	
 	

Executive One Associates

c/o PM Realty Group

1010 Second Avenue

Suite 2250

San Diego, California 92101-4913

Attention: Property Manager
	

 	
 	

 	
 	

 	
 	

and
	

 	
 	

 	
 	

 	
 	

Allen Matkins Leck Gamble & Mallory LLP

1901 Avenue of the Stars,

Suite 1800

Los Angeles, California 90067

Attention: John M. Tipton, Esq.
	 	 	 	 	 	 	 

2

 

	

10.	
 	

Broker(s)

(Section 29.24):	
 	

For Landlord:
	 	 	 	 	 	 	BRE Commercial/NAI

750 B Street,

Suite 3150

San Diego, California 92101
	

 	
 	

 	
 	

 	
 	

For Tenant:
	

 	
 	

 	
 	

 	
 	

The Irving Hughes Group

550 West "C" Street

Suite 2000

San Diego, California 92101
	

11.	
 	

Tenant Improvement Allowance	
 	

Zero Dollars ($0.00)

ARTICLE 1

PREMISES, BUILDING, PROJECT, AND COMMON AREAS;

RENTABLE SQUARE FOOTAGE  

        1.1    Premises, Building, Project and Common Areas.    

        1.1.1    The Premises.    Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord the premises set forth in Section 2.2 of the Summary (the "Premises"). The outline of the Premises is set forth in  Exhibit A
attached hereto and each floor or floors of the Premises has the number of rentable square feet as set forth in Section 2.2 of
the Summary. The parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a material part of the
consideration for this Lease to keep and perform each and all of such terms, covenants and conditions by it to be kept and performed and that this Lease is made upon
the condition of such performance. The parties hereto hereby acknowledge that the purpose of Exhibit A is to show the approximate location of the
Premises in the "Building," as that term is defined in Section 1.1.2, below, only, and such Exhibit is not meant to constitute an agreement, representation or warranty as to the construction of
the Premises, the precise area thereof or the specific location of the "Common Areas," as that term is defined in Section 1.1.3, below, or the elements thereof or of the accessways to the
Premises or the "Project," as that term is defined in Section 1.1.2, below. Tenant acknowledges that Tenant has inspected the Premises and that Tenant shall accept the Premises in its presently
existing, "as-is" condition, and Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises. Tenant also acknowledges
that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises, the Building or the Project or with respect to the suitability of any
of the foregoing for the conduct of Tenant's business, except as specifically set forth in this Lease. Except as set forth in Article 7, below, the taking of possession of the Premises by
Tenant shall conclusively establish that the Premises and the Building were at such time in good and sanitary order, condition and repair. 

        1.1.2    The Building and The Project.    The Premises are a part of the building set forth in
Section 2.1 of the Summary (the "Building"). The Building is part of an office project known as the "Executive Complex." The term
"Project," as used in this Lease, shall mean (i) the Building, which contains an east and a west tower, and the Common Areas, (ii) the
land (which is improved with landscaping, subterranean parking facilities and other improvements) upon which the Building and the Common Areas are located, and (iii) at Landlord's discretion,
any additional real property, 

3

 

areas,
land, buildings or other improvements added thereto outside of the Project (excluding only the adjacent hotel and land under said hotel). 

        1.1.3    Common Areas.    Tenant shall have the non-exclusive right to use in
common with other tenants in the Project, and subject to the rules and regulations referred to in Article 5 of this Lease, those portions of the Project which are provided, from time to time,
for use in common by Landlord, Tenant and any other tenants of the Project (such areas, together with such other portions of the Project designated by Landlord, in its discretion, including certain
areas designated for the exclusive use of certain tenants, or to be shared by Landlord and certain tenants, are collectively referred to herein as the "Common
Areas"). The manner in which the Common Areas are maintained and operated shall be consistent with other first-class buildings and projects in the San Diego area and the use
thereof shall be subject to such rules, regulations and restrictions as Landlord may make from time to time. Landlord reserves the right to close temporarily, make alterations or additions to, or
change the location of elements of the Project and the Common Areas, provided that Landlord shall use commercially reasonable efforts to minimize any interference with Tenant's use of and access to
the Premises and the Project parking facilities. Except when and where Tenant's right of access is specifically excluded in this Lease, Tenant shall have the right of access to the Premises, the
Building, and the Project parking facility twenty-four (24) hours per day, seven (7) days per week during the "Lease Term," as that term is defined in Section 2.1,
below. 

        1.2    Square Feet of Premises and Building.    For purposes of this Lease, the "rentable
square feet" and "usable square feet" of the Premises have been calculated pursuant to Standard Method of Measuring Floor Area in Office Building, ANSI Z65.1 - 1996
("BOMA") and shall be conclusively deemed to be as set forth in Section 2.2 of the Summary, and the rentable square feet of the Building shall be
conclusively deemed to be 324,610 rentable square feet. 

        1.3    Office Furniture.    Notwithstanding anything in this Lease to the contrary, during the
Lease Term Landlord shall provide Tenant with the access to and permit the use of those certain items of office furniture and other items of personal property as set forth in more detail on  Exhibit B attached to this Lease (collectively, the "Office Furniture"). Tenant shall accept such
Office Furniture in its presently existing, "as-is" condition, and Tenant shall be responsible, at Tenant's sole cost and expense, for all maintenance and repair of such Office Furniture,
normal wear and tear excepted. Upon the Lease Termination Date, (i) such Office Furniture shall remain the sole property of Landlord, and (ii) Tenant shall surrender possession of such
Office Furniture to Landlord in as good order and condition as when Tenant took possession of such Office Furniture, reasonable wear and tear excepted. In addition, upon such Lease Termination Date,
in the event any items of such Office Furniture are missing or damaged, Tenant shall, at Tenant's sole cost and expense, replace or repair, respectively, such items of Office Furniture. In the event
Tenant elects not to utilize any individual items of Office Furniture, upon Tenant's written request, Landlord shall, at Landlord's expense, place such items of Office Furniture in storage. 

ARTICLE 2

INITIAL LEASE TERM; OPTION TERM(S)  

        2.1    Initial Lease Term.    The terms and provisions of this Lease shall be effective as of
the date of this Lease. The initial term of this Lease (the "Lease Term") shall be as set forth in Section 3.1 of the Summary, shall commence on
the date set forth in Section 3.2 of the Summary (the "Lease Commencement Date"), and shall terminate on the date set forth in Section 3.3
of the Summary (the "Lease Expiration Date") unless this Lease is sooner terminated as hereinafter provided. For purposes of this Lease, the term
"Lease Year" shall mean each consecutive twelve (12) month period during the Lease Term; provided, however, that the last Lease Year shall end on
the Lease Expiration Date. For purposes of this Lease, the term "Lease Month" shall mean each calendar month during the Lease 

4

 

Term.
Landlord may deliver to Tenant a notice in the form as set forth in Exhibit C, attached hereto, as a confirmation only of the information
set forth therein, which Tenant shall execute and return to Landlord prior to initially taking possession of the Premises. 

        2.2    Option Term(s).    

        2.2.1    Option Right.    Provided that Tenant is not then in default (beyond any applicable
cure period) under this Lease, Landlord hereby grants Tenant two (2) options to extend the Lease Term (the "First Option Term"and  "Second Option Term," respectively), each of which shall be for a period of six (6) months. If Tenant timely and properly exercises its option to
extend (specifically including, without limitation, the timely receipt by Landlord of the increase in the amounts of the Last Month's Base Rent (as defined in Article 3, below) and Security
Deposit, as set froth in Section 2.2.2, below), the Lease Term shall be extended for the First Option Term or the Second Option Term, as applicable, upon all of the terms and conditions set
forth in this Lease, provided that the Base Rent attributable to the Premises shall be as follows: (i) during the First Option Term, Tenant shall pay Base Rent for the Premises in the amount of
Twenty-Seven Thousand Nine Hundred and 60/100 Dollars ($27,900.60) per month, and (ii) during the Second Option Term, Tenant shall pay Base Rent for the Premises in the amount of
Thirty-One Thousand Eight Hundred Eighty-Six and 40/100 Dollars ($31,886.40) per month. 

        2.2.2    Exercise of Option.    The options contained in this Section 2.2 shall be
exercised by Tenant, if at all, only in the manner set forth in this Section 2.2.2. In the event Tenant wishes to exercise any such option, Tenant shall deliver written notice
("Tenant's Election Notice") to Landlord not less than three (3) months prior to the expiration of the Lease Term or the First Option Term, as
applicable, stating that Tenant is thereby irrevocably exercising the applicable option right set forth in this Section 2.2. Notwithstanding anything in this Section 2.2 to the contrary,
Tenant shall only be permitted to exercise its option with respect to the Second Option Term if Tenant shall have timely exercised its option with respect to the First Option Term. In the event that
Tenant elects to exercise its right to extend the Lease Term for the First Option Term, then concurrently with Tenant's delivery of Tenant's Election Notice to Landlord, Tenant shall also deliver to
Landlord an amount equal to Eleven Thousand Nine Hundred Fifty-Nine and 20/100 Dollars ($11,959.20), representing the sum of (i) the increase of Five Thousand Nine Hundred
Seventy-Nine and 60/100 Dollars ($5,979.60) in the amount of the Last Month's Base Rent (as that term is defined in Article 3, below) applicable to the Premises during the First
Option Term as compared to the initial Lease Term, and (ii) the increase of Five Thousand Nine Hundred Seventy-Nine and 60/100 Dollars ($5,979.60) in the amount of the Security
Deposit applicable to the Premises during the First Option Term as compared to the initial Lease Term. In the event that Tenant elects to exercise its right to extend the Lease Term for the Second
Option Term, then concurrently with Tenant's delivery of the applicable Tenant's Election Notice to Landlord, Tenant shall also deliver to Landlord an amount equal to Seven Thousand Nine Hundred
Seventy-One and 60/100 Dollars ($7,971.60), representing the sum of (A) the increase of Three Thousand Nine Hundred Eighty-Five and 80/100 Dollars (3,985.80) in the
amount of the Last Month's Base Rent applicable to the Premises during the Second Option Term as compared to the First Option Term, and (B) the increase of Three Thousand Nine Hundred
Eighty-Five and 80/100 Dollars (3,985.80) in the amount of the Security Deposit applicable to the Premises during the Second Option Term as compared to the First Option Term. 

        2.3    Beneficial Occupancy.    Tenant shall have the right to occupy the Premises prior to
the Lease Commencement Date, provided that (A) Tenant shall give Landlord at least two (2) business days' prior notice of any such occupancy of the Premises, and (B) all of the
terms and conditions of the Lease shall apply, other than Tenant's obligation to pay Base Rent (as that term is defined in Article 3 below), as
though the Lease Commencement Date had occurred (although the Lease Commencement 

5

 

Date
shall not actually occur until the occurrence of the same pursuant to the terms of the second sentence of Section 2.1, above) upon such occupancy of the Premises by Tenant. 

ARTICLE 3

BASE RENT  

        Tenant shall pay, without prior notice or demand, to Landlord or Landlord's agent at the management office of the Project, or, at Landlord's option, at such other
place as Landlord may from time to time designate in writing, by a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America, base
rent ("Base Rent") as set forth in Section 4 of the Summary, payable in equal monthly installments as set forth in Section 4 of the Summary in advance on or before the first day of each
and every calendar month during the Lease Term, without any setoff or deduction whatsoever. The Base Rent for (i) the first full month of the Lease Term, and (ii) the last full month of
the Lease Term (the "Last Month's Base Rent") shall be paid at the time of Tenant's execution of this Lease; provided that the amount of such Last
Month's Base Rent may be increased pursuant to the terms of Section 2.2.2, above. If any Rent payment date (including the Lease Commencement Date) falls on a day of the month other than the
first day of such month or if any payment of Rent is for a period which is shorter than one month, the Rent for any fractional month shall accrue on a daily basis for the period from the date such
payment is due to the end of such calendar month or to the end of the Lease Term at a rate per day which is equal to 1/365 of the applicable annual Rent. All other payments or adjustments required to
be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis. 

ARTICLE 4

ADDITIONAL RENT  

        4.1    General Terms.    Any and all amounts payable by Tenant to Landlord pursuant to the
terms of this Lease, are hereinafter collectively referred to as the "Additional Rent", and the Base Rent and the Additional Rent are herein
collectively referred to as "Rent." All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same
manner as the Base Rent. Without limitation on other obligations of Tenant which survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this
Article 4 shall survive the
expiration of the Lease Term. The parties hereto acknowledge that Landlord shall not pass through to Tenant any operating expenses or tax expenses except as specifically set forth in this Lease. 

        4.2    Taxes and Other Charges for Which Tenant Is Directly Responsible.    

        4.2.1     Tenant
shall be liable for and shall pay ten (10) days before delinquency, taxes levied against Tenant's equipment, furniture, fixtures and any
other personal property located in or about the Premises. If any such taxes on Tenant's equipment, furniture, fixtures and any other personal property are levied against Landlord or Landlord's
property or if the assessed value of Landlord's property is increased by the inclusion therein of a value placed upon such equipment, furniture, fixtures or any other personal property and if Landlord
pays the taxes based upon such increased assessment, which Landlord shall have the right to do regardless of the validity thereof but only under proper protest if requested by Tenant, Tenant shall
upon demand repay to Landlord the taxes so levied against Landlord or the proportion of such taxes resulting from such increase in the assessment, as the case may be. 

        4.2.2     If
the tenant improvements in the Premises which are installed and/or paid for by Tenant, whether or not affixed to the real property so as to become a
part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which tenant improvements conforming to Landlord's "building standard" in other space in the
Building are assessed, then all federal, state, county, or local governmental or municipal taxes, fees, charges or other impositions 

6

 

of
every kind and nature, levied against Landlord or the property by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be
governed by the provisions of Section 4.4.1, above. 

        4.2.3     Notwithstanding
any contrary provision herein, Tenant shall pay prior to delinquency any (i) rent tax or sales tax, service tax, transfer tax or
value added tax, or any other applicable tax on the rent or services herein or otherwise respecting this Lease, (ii) taxes assessed upon or with respect to the possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project, including the Project parking facility; or (iii) taxes assessed upon this
transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises. 

ARTICLE 5

USE OF PREMISES  

        5.1    Permitted Use; Additional Use.    Tenant shall use the Premises for the Permitted Use
set forth in Section 5 of the Summary and except as provided in this Section 5.1, Tenant shall not use or permit the Premises or the Project to be used for any other purpose or purposes
whatsoever without the prior written consent of Landlord, which may be withheld in Landlord's sole discretion. Subject to the terms and conditions set forth in this Section 5.1, Landlord grants
to the Tenant originally named in this Lease (the "Original Tenant") the right to use the Premises for the Additional Use. Tenant hereby represents and
warrants that (i) Tenant shall not use any Hazardous Materials (as that terms is defined in Section 5.2, below) in connection with such Additional Use, (ii) Tenant shall be solely
responsible, at Tenant's sole cost and expense, to provide any and all insurance required in connection with the Additional Use, (iii) the Additional Use shall in no way increase the existing
rate of, or adversely affect, any fire or other insurance of the Project, Building or any of its contents, nor shall it cause a cancellation of any insurance policy with respect to the Project or
Building, and (iv) the Additional Use shall in no way cause any excess noise or vibration (beyond that caused by a general office use) in the Building. The right to use the Premises for the
Additional Use shall be personal to the Original Tenant (and may not be exercised by any assignee, sublessee or other transferee of the Original Tenant's interest in this Lease). 

        5.2    Prohibited Uses.    The uses prohibited under this Lease shall include, without
limitation, use of the Premises or a portion thereof for (i) offices of any agency or bureau of the United States or any state or political subdivision thereof; (ii) offices or agencies
of any foreign governmental or political subdivision thereof; (iii) offices of any health care professionals or service organization; (iv) schools or other training facilities which are
not ancillary to corporate, executive or professional office use; (v) retail or restaurant uses; or (vi) communications firms such as radio and/or television stations. Tenant shall not
allow occupancy density of use of the Premises which is greater than the average density of the other tenants of the Building. Tenant further covenants and agrees that Tenant shall not use, or suffer
or permit any person or persons to use, the Premises or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in  Exhibit D, attached
hereto, or in violation of the laws of the United States of America, the State of California, or the ordinances, regulations
or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Project) including, without limitation, any such laws, ordinances, regulations
or requirements relating to hazardous materials or substances ("Hazardous Materials"), as those terms are defined by applicable laws now or hereafter in
effect. Tenant shall not do or permit anything to be done in or about the Premises which will in any way damage the reputation of the Project or obstruct or interfere with the rights of other tenants
or occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any
nuisance in, on or about the Premises. Tenant shall comply with all recorded covenants, conditions, and restrictions now or hereafter affecting the Project. 

7

 

ARTICLE 6

SERVICES AND UTILITIES  

        6.1    Standard Tenant Services.    Landlord shall provide the following services on all days
(unless otherwise stated below) during the Lease Term. 

        6.1.1     Subject
to limitations imposed by all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide to the Premises heating
and air conditioning ("HVAC") when necessary for normal comfort for normal office use in such portions of the Premises from 7:00 A.M. to
6:00 P.M. Monday through Friday, and on Saturdays from 8:00 A.M. to 1:00 P.M., (collectively, the "Building Hours"), except for the
date of observation of New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and, at Landlord's discretion, other locally or nationally recognized
holidays (collectively, the "Holidays"). 

        6.1.2     Landlord
shall provide adequate electrical wiring and facilities for connection to Tenant's lighting fixtures and incidental use equipment, provided that
(i) the connected electrical load of the incidental use equipment does not exceed an average of two and one-half (2.5) watts per usable square foot of the Premises during the
Building Hours on a monthly basis, and the electricity so furnished for incidental use equipment will be at a nominal one hundred twenty (120) volts and no electrical circuit for the supply of
such incidental use equipment will require a current capacity exceeding twenty (20) amperes, and (ii) the connected electrical load of Tenant's lighting fixtures does not exceed an
average of one and one-half (1.5) watts per usable square foot of the Premises during the Building Hours on a monthly basis, and the electricity so furnished for Tenant's lighting will be
at a nominal one hundred twenty (120) volts, which electrical usage shall be subject to applicable laws and regulations, including Title 24. Tenant will design Tenant's electrical system
serving any equipment producing nonlinear electrical loads to accommodate such nonlinear electrical loads, including, but not limited to, oversizing neutral conductors, derating transformers and/or
providing power-line filters. Engineering plans shall include a calculation of Tenant's fully connected electrical design load with and without demand factors and shall indicate the number
of watts of unmetered and submetered loads. Tenant shall bear the cost of replacement of lamps, starters and ballasts for non-Building standard lighting fixtures within the Premises. 

        6.1.3     Landlord
shall provide city water from the regular Building outlets for drinking, lavatory and toilet purposes in the Common Areas. 

        6.1.4     Landlord
shall provide janitorial services to the Premises five (5) days per week, except the date of observation of the Holidays, in and about
the Premises and window washing services in a manner consistent with other comparable first-class buildings in the vicinity of the Building. 

        6.1.5     Landlord
shall provide nonexclusive, non-attended automatic passenger elevator service during the Building Hours, shall have one elevator
available at all other times, except on the Holidays, and shall provide nonexclusive, non-attended automatic passenger escalator service during Building Hours only. 

        6.1.6     Landlord
shall provide nonexclusive freight elevator service subject to scheduling by Landlord. 

        Tenant
shall cooperate fully with Landlord at all times and abide by all regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of
the HVAC, electrical, mechanical and plumbing systems. 

        6.2    Overstandard Tenant Use.    Tenant shall not, without Landlord's prior written consent,
use heat-generating machines, machines other than normal fractional horsepower office machines, or 

8

 

equipment
or lighting other than Building standard lights in the Premises, which may affect the temperature otherwise maintained by the air conditioning system or increase the water normally furnished
for the Premises by Landlord pursuant to the terms of Section 6.1 of this Lease. If such consent is given, Landlord shall have the right to install supplementary air conditioning units or other
facilities in the Premises, including supplementary or additional metering devices, and the cost thereof, including the cost of installation, operation and maintenance, increased wear and tear on
existing equipment and other similar charges, shall be paid by Tenant to Landlord upon billing by Landlord. If Tenant uses water, electricity, heat or air conditioning in excess of that supplied by
Landlord pursuant to Section 6.1 of this Lease, Tenant shall pay to Landlord, upon billing, the cost of such excess consumption, the cost of the installation, operation, and maintenance of
equipment which is installed in order to supply such excess consumption, and the cost of the increased wear and tear on existing equipment caused by such excess consumption; and Landlord may install
devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, on demand, at the rates charged by the public utility company furnishing the
same, including the cost of such additional metering devices. Tenant's use of electricity shall never exceed the capacity of the feeders to the Project or the risers or wiring installation, and
subject to the terms of Section 29.33, below, Tenant shall not install or use or permit the installation or use of any computer or electronic data processing equipment in the Premises, without
the prior written consent of Landlord. If Tenant desires to use heat, ventilation or air conditioning during hours other than those for which Landlord is obligated to supply such utilities pursuant to
the terms of Section 6.1 of this Lease, Tenant shall give Landlord such prior notice, if any, as Landlord shall from time to time establish as appropriate, of Tenant's desired use in order to
supply such utilities, and Landlord shall supply such utilities to Tenant at such hourly cost to Tenant (which shall be treated as Additional Rent) as Landlord shall from time to time establish. 

        6.3    Interruption of Use.    Tenant agrees that Landlord shall not be liable for damages, by
abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service (including telephone and telecommunication services), or for any diminution in the quality or quantity
thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any strike, lockout or other labor trouble, by inability
to secure electricity, gas, water, or other fuel at the Building or Project after reasonable effort to do so, by any riot or other dangerous condition, emergency, accident or casualty whatsoever, by
act or default of Tenant or other parties, or by any other cause; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant's use and
possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease, except as otherwise expressly set forth in Section 19.5 of this Lease.
Furthermore, except for physical damage or personal injury caused by
Landlord's negligence or willful misconduct, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or interference with, Tenant's business,
including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or utilities as set forth in this
Article 6. Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or conservation of energy, water, gas, light or electricity or
the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease, provided that the Premises are not thereby rendered untenantable. 

ARTICLE 7

REPAIRS  

        Landlord shall maintain in first-class condition and operating order and keep in good repair the Base Building (as that term is defined in Section 8.3,
below), except to the extent caused due to Tenant's use of the Premises for other than the Permitted Use, or, if applicable, the Additional Use, unless and to the extent such damage is covered by
insurance carried by Landlord pursuant to 

9

 

Article 10
of this Lease and to which the waiver of subrogation is applicable. Landlord hereby represents and warrants that, to Landlord's actual knowledge, as of the Lease Commencement Date,
the Base Building within the Premises is in good working order; provided, however, in no event shall the foregoing representation and warranty be deemed to apply with respect to the condition of the
approximately one hundred twenty-one workstations currently-existing in the Premises (the "Workstations") which were constructed by the
prior tenant of the Premises, the repair and maintenance of which Workstations shall be the obligation of Tenant. Within five (5) days following the full execution and delivery of this Lease,
Landlord and Tenant shall conduct a joint walk-through of the Premises and jointly identify any aspects of the Base Building in the Premises which are not in good working order and repair.
Thereafter, Landlord shall, at Landlord's expense, promptly repair any elements of the Base Building in the Premises which are not then in good working order and repair. Effective as of the Lease
Commencement Date, Tenant shall, at Tenant's own expense, pursuant to the terms of this Lease, including without limitation Article 8 hereof, keep the Premises, including all improvements,
fixtures and furnishings therein, and the floor or floors of the Building on which the Premises are located, in good order, repair and condition at all times during the Lease Term. In addition, Tenant
shall, at Tenant's own expense, but under the supervision and subject to the prior approval of Landlord, and within any reasonable period of time specified by Landlord, pursuant to the terms of this
Lease, including without limitation Article 8 hereof, promptly and adequately repair all damage to the Premises and replace or repair all damaged, broken, or worn fixtures and appurtenances,
except for damage caused by ordinary wear and tear or beyond the reasonable control of Tenant; provided however, that, at Landlord's option, or if Tenant fails to make such repairs, Landlord may, but
need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building and/or the
Project) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord's involvement with such repairs and replacements forthwith upon
being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable times and after reasonable notice to make such repairs, alterations, improvements or additions
to the Premises or to the Project or to any equipment located in the Project as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental
authority or court order or decree. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932 and Sections 1941 and 1942 of the California Civil Code or under
any similar law, statute, or ordinance now or hereafter in effect. 

ARTICLE 8

ADDITIONS AND ALTERATIONS  

        8.1    Landlord's Consent to Alterations.    Tenant may not make any improvements,
alterations, additions or changes to the Premises or any mechanical, plumbing or HVAC facilities or systems pertaining to the Premises (collectively, the
"Alterations") without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less
than ten (10) days prior to the commencement thereof, and which consent shall not be unreasonably withheld by Landlord, provided it shall be deemed reasonable for Landlord to withhold its
consent to any Alteration which adversely affects the structural portions or the systems or equipment of the Building or is visible from the exterior of the Building. Tenant acknowledges that Tenant
has accepted the Premises in its then existing, "as-is" condition as of the date of this Lease, and that Landlord has no obligation to provide any improvements to the Premises. In the
event Tenant desires improvements of any type or nature to be made to the Premises, such improvements shall be deemed Alterations and governed by the terms and conditions of this Article 8. 

        8.2    Manner of Construction.    Landlord may impose, as a condition of its consent to any
and all Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its sole discretion may deem desirable, including, but not limited to, the requirement that
Tenant utilize for 

10

 

such
purposes only contractors, subcontractors, materials, mechanics and materialmen selected by Tenant from a list provided and approved by Landlord, the requirement that upon Landlord's request,
Tenant shall, at Tenant's expense, remove such Alterations upon the expiration or any early termination of the Lease Term. If such Alterations will involve the use of or disturb hazardous materials or
substances existing in the Premises, Tenant shall comply with Landlord's rules and regulations concerning such hazardous materials or substances. Tenant shall construct such Alterations and perform
such repairs in a good and workmanlike manner, in conformance with any and all applicable federal, state, county or municipal laws, rules and regulations and pursuant to a valid building permit,
issued by the City of San Diego, all in conformance with Landlord's construction rules and regulations. In the event Tenant performs any Alterations in the Premises which require or give rise to
governmentally required changes to the Base Building (as that term is defined below), then Landlord shall, at Tenant's expense, make such changes to the Base Building. The
"Base Building" shall include the structural portions of the Building, the systems and equipment located in the internal core of the Building, and the
Common Areas. In performing the work of any such Alterations, Tenant shall have the work performed in such manner so as not to obstruct access to the Project or any portion thereof, by any other
tenant of the Project, and so as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall not use (and upon notice from Landlord shall cease using) contractors, services,
workmen, labor, materials or equipment that, in Landlord's reasonable judgment, would disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about
the Building or the Common Areas. In addition to Tenant's obligations under Article 9 of this Lease, upon completion of any Alterations, Tenant agrees to cause a Notice of Completion to be
recorded in the office of the Recorder of the County of San Diego in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall deliver
to the Project management office a reproducible copy of the "as built" drawings of the Alterations as well as all permits, approvals and other documents issued by any governmental agency in connection
with the Alterations. 

        8.3    Payment for Improvements.    If payment is made directly to contractors, Tenant shall
comply with Landlord's requirements for final lien releases and waivers in connection with Tenant's payment for work to contractors. If Tenant orders any work directly from Landlord, Tenant shall pay
to Landlord a percentage of the cost of such work sufficient to compensate Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord's involvement with
such work. If Tenant does not order any work directly from Landlord, Tenant shall reimburse Landlord for Landlord's reasonable, actual, out-of-pocket costs and expenses
actually incurred in connection with Landlord's review of such work. 

        8.4    Construction Insurance.    In addition to the requirements of Article 10 of this
Lease, all of which shall apply to Tenant's contractors in the event that Tenant makes any Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that
Tenant carries "Builder's All Risk" insurance in an amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may require, it being understood and
agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon
completion thereof. In addition, in connection with Alterations that are estimated to cost in excess of $50,000.00, Landlord may, in its discretion, require Tenant to obtain a lien and completion bond
or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee. 

        8.5    Landlord's Property.    All Alterations, improvements, fixtures, equipment and/or
appurtenances which may be installed or placed in or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the property of Landlord, except that Tenant may
remove any Alterations, improvements, fixtures and/or equipment which Tenant can substantiate to Landlord have not been paid for with any Tenant improvement allowance funds provided to Tenant by
Landlord, 

11

 

provided
Tenant repairs any damage to the Premises and Building caused by such removal and returns the affected portion of the Premises to a building standard tenant improved condition suitable for
general office use as determined by Landlord. Furthermore, Landlord may, by written notice to Tenant given concurrently with Landlord's consent to such Alteration, require Tenant, at Tenant's expense,
to remove any Alterations or improvements in the Premises, and to repair any damage to the Premises and Building caused by such removal and returns the affected portion of the Premises to a building
standard tenant improved condition suitable for general office use as determined by Landlord. If Tenant fails to complete such removal and/or to repair any damage caused by the removal of any
Alterations or improvements in the Premises, and returns the affected portion of the Premises to a building standard tenant improved condition as determined by Landlord, Landlord may do so and may
charge the cost thereof to Tenant. Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any liability, cost, obligation, expense or claim of lien in any manner relating to the
installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises, which obligations of Tenant shall survive the expiration or
earlier termination of this Lease. 

ARTICLE 9

COVENANT AGAINST LIENS  

        Tenant shall keep the Project and Premises free from any liens or encumbrances arising out of the work performed, materials furnished or obligations incurred by
or on behalf of Tenant, and shall protect, defend, indemnify and hold Landlord harmless from and against any claims, liabilities, judgments or costs (including, without limitation, reasonable
attorneys' fees and costs) arising out of same or in connection therewith. Tenant shall give Landlord notice at least twenty (20) days prior to the commencement of any such work on the Premises
(or such additional time as may be necessary under applicable laws) to afford Landlord the opportunity of posting and recording appropriate notices of non-responsibility. Tenant shall
remove any such lien or encumbrance by bond or otherwise within ten (10) business days after the filing of such lien, and if Tenant shall fail to do so, Landlord may pay the amount necessary to
remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid shall be deemed Additional Rent under this Lease payable upon demand, without
limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall
subject Landlord's title to the Building or Premises to any liens or encumbrances whether claimed by operation of law or express or implied contract. Any claim to a lien or encumbrance upon the
Building or Premises arising in connection with any such work or respecting the Premises not performed by or at the request of Landlord shall be null and void, or at Landlord's option shall attach
only against Tenant's interest in the Premises and shall in all respects be subordinate to Landlord's title to the Project, Building and Premises. 

ARTICLE 10

INSURANCE  

        10.1    Indemnification and Waiver.    Tenant hereby assumes all risk of damage to property or
injury to persons in, upon or about the Premises from any cause whatsoever and agrees that Landlord, its partners, subpartners and their respective officers, agents, servants, employees, and
independent contractors (collectively, "Landlord Parties") shall not be liable for, and are hereby released from any responsibility for, any damage
either to person or property or resulting from the loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and
hold harmless the Landlord Parties from any and all loss, cost, damage, expense and liability (including without limitation court costs and reasonable attorneys' fees) (collectively,  "Claims") incurred
in connection with or arising from any cause in, on or about the Premises, any acts, omissions or negligence of Tenant or of any
person claiming by, through or under 

12

 

Tenant,
or of the contractors, agents, servants, employees, invitees, guests or licensees of Tenant (collectively, "Tenant Parties") or any such person,
in, on or about the Project or any breach of the terms of this Lease, either prior to, during, or after the expiration of the Lease Term, provided that the terms of the foregoing indemnity shall not
apply to Claims arising out of, or in connection with, the negligence or willful misconduct of Landlord or Landlord's Parties, or Landlord's breach of this Lease; provided, however, Tenant hereby
indemnifies and holds Landlord harmless from any Claims to the extent such Claim is covered by Tenant's insurance, even if such Claim is resulting from the negligence or willful misconduct of Landlord
or the Landlord Parties. Subject to Section 10.5 below, Landlord hereby indemnifies Tenant and holds Tenant harmless from any Claims to the
extent resulting from the negligence or willful misconduct of Landlord or the Landlord Parties and not covered by insurance required to be carried under this Lease by Tenant or actually carried by
Tenant; provided, however, that (i) Landlord further indemnifies and holds Tenant harmless from any Claims to any property outside of the Premises to the extent such Claim is covered by
insurance carried by Landlord, even if resulting from the negligence or willful misconduct of Tenant or the Tenant Parties, and (ii) because Tenant must carry insurance pursuant to  Section 10.3.2 to cover its personal property within the Premises, the Office Furniture and any Alterations, notwithstanding anything to the
contrary in the sentence, above, Tenant hereby indemnifies and holds Landlord and the Landlord Parties harmless from any Claim to any property within the Premises, to the extent such Claim is covered
by Tenant's insurance, even if resulting from the negligence or willful misconduct of Landlord or the Landlord Parties. Should Landlord be named as a defendant in any suit brought against Tenant in
connection with or arising out of Tenant's occupancy of the Premises, Tenant shall pay to Landlord its costs and expenses incurred in such suit, including without limitation, its actual professional
fees such as appraisers', accountants' and attorneys' fees. Further, Tenant's agreement to indemnify Landlord pursuant to this Section 10.1 is not intended and shall not relieve any insurance
carrier of its obligations under policies required to be carried by Tenant pursuant to the provisions of this Lease, to the extent such policies cover the matters subject to Tenant's indemnification
obligations; nor shall they supersede any inconsistent agreement of the parties set forth in any other provision of this Lease. The provisions of this Section 10.1 shall survive the expiration
or sooner termination of this Lease with respect to any claims or liability arising in connection with any event occurring prior to such expiration or termination. 

        10.2    Tenant's Compliance With Landlord's Fire and Casualty Insurance.    Tenant shall, at
Tenant's expense, comply with all insurance company requirements pertaining to the use of the Premises. If Tenant's conduct or use of the Premises causes any increase in the premium for such insurance
policies then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant's expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association
(formerly the National Board of Fire Underwriters) and with any similar body. 

        10.3    Tenant's Insurance.    Tenant shall maintain the following coverages in the following
amounts. 

        10.3.1     Commercial
General Liability Insurance covering the insured against claims of bodily injury, personal injury and property damage (including loss of use
thereof) arising out of Tenant's operations, and contractual liabilities (covering the performance by Tenant of its indemnity agreements) including a Broad Form endorsement covering the insuring
provisions of this Lease 

13

 

and
the performance by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease, for limits of liability not less than: 

	Bodily Injury Liability	 	$2,000,000 each occurrence
	 	 	$2,000,000 annual aggregate
	

Personal Injury Liability	
 	

$2,000,000 each occurrence
	 	 	$2,000,000 annual aggregate
	

 	
 	

0% Insured's participation
	

Property Damage Liability	
 	

$1,000,000 each occurrence
	 	 	$1,000,000 annual aggregate

        10.3.2     Physical
Damage Insurance covering (i) all office furniture, business and trade fixtures, office equipment, free-standing cabinet
work, movable partitions, merchandise and all other items of Tenant's property on the Premises installed by, for, or at the expense of Tenant, (ii) the Office Furniture, and (iii) all
other improvements, alterations and additions to the Premises. Such insurance shall be written on an "all risks" of physical loss or damage basis, for the full replacement cost value (subject to
reasonable deductible amounts) new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include
coverage for damage or other loss caused by fire or other peril including, but not limited to, vandalism and malicious mischief, theft, water damage of any type, including sprinkler
leakage, bursting or stoppage of pipes, and explosion, and providing business interruption coverage for a period of one year. 

        10.3.3     Worker's
Compensation and Employer's Liability or other similar insurance pursuant to all applicable state and local statutes and regulations. 

        10.4    Form of Policies.    The minimum limits of policies of insurance required of Tenant
under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord, and any other party the Landlord so specifies, as an additional
insured, including Landlord's managing agent, if any; (ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant's obligations under
Section 10.1 of this Lease; (iii) be issued by an insurance company having a rating of not less than A-X in Best's Insurance Guide or which is otherwise acceptable to
Landlord and licensed to do business in the State of California; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and is
non-contributing with any insurance requirement of Tenant; (v) be in form and content reasonably acceptable to Landlord; and (vi) provide that said insurance shall not be
canceled or coverage changed unless thirty (30) days' prior written notice shall have been given to Landlord and any mortgagee of Landlord. Tenant shall deliver said policy or policies or
certificates thereof to Landlord on or before the Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to procure such
insurance, or to deliver such policies or certificate, Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five
(5) days after delivery to Tenant of bills therefor. 

        10.5    Subrogation.    Landlord and Tenant intend that their respective property loss risks
shall be borne by reasonable insurance carriers to the extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance carriers
in the event of a property loss to the extent that such coverage is agreed to be provided hereunder. The parties each hereby waive all rights and claims against each other for such losses, and waive
all rights of subrogation of their respective insurers, provided such waiver of subrogation shall not affect the right to the insured to recover thereunder. The parties agree that their respective
insurance policies are now, or shall be, 

14

 

endorsed
such that the waiver of subrogation shall not affect the right of the insured to recover thereunder, so long as no material additional premium is charged therefor. 

        10.6    Additional Insurance Obligations.    Tenant shall carry and maintain during the entire
Lease Term, at Tenant's sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10 and such other reasonable types of insurance
coverage and in such reasonable amounts covering the Premises and Tenant's operations therein, as may be reasonably requested by Landlord. 

ARTICLE 11

DAMAGE AND DESTRUCTION  

        11.1    Repair of Damage to Premises by Landlord.    Tenant shall promptly notify Landlord of
any damage to the Premises resulting from fire or any other casualty. If the Premises or any Common Areas serving or providing access to the Premises shall be damaged by fire or other casualty,
Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord's reasonable control, and subject to all other terms of this
Article 11, restore the Base Building, such Common Areas and the improvements which exist in the Premises as of the Lease Commencement Date (the "Original
Improvements") (excluding the Workstations). Such restoration shall be to substantially the same condition of the Base Building, the Common Areas and the Original Improvements
prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Building or Project or any other modifications to the Common
Areas deemed desirable by Landlord, provided that access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Upon the occurrence of any damage to the
Premises, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant's insurance required under Section 10.3 of this Lease,
and Landlord shall repair any injury or damage to the Workstations and/or Alterations installed in the Premises and shall return such Workstations and/or Alterations to their condition existing prior
to such damage; provided that if the cost of such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant's insurance carrier, as assigned by Tenant, then either
(i) the cost of such repairs shall be paid by Tenant to Landlord prior to Landlord's commencement of repair of the damage to the Workstations and/or Alterations or (ii) Landlord shall
only be required to repair the damage to the Workstations and/or Alterations to the extent of the insurance proceeds received from Tenant. Prior to the commencement of construction, Tenant shall
submit to Landlord, for Landlord's review and approval, all plans, specifications and working drawings relating thereto, and Landlord shall select the contractors to perform such improvement work.
Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant's business resulting in any way from such damage or the repair thereof; provided however,
that if such fire or other casualty shall have damaged the Premises or Common Areas necessary to Tenant's occupancy, Landlord shall allow Tenant a proportionate abatement of Rent to the extent
Landlord is reimbursed from the proceeds of rental interruption insurance, during the time and to the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and not
occupied by Tenant as a result thereof; provided, further, however, that if the damage or destruction is due to the negligence or willful misconduct of Tenant or any of its agents, employees,
contractors, invitees or guests, Tenant shall be responsible for any reasonable, applicable insurance deductible (which shall be payable to Landlord upon demand). The provisions of this Lease,
including this Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or
the Project, and any statute or regulation of the State of California, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or
obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to
this Lease or any damage or destruction to all or any part of the Premises, the Building or the Project. 

15

 

        11.2    Landlord's Option to Repair.    Notwithstanding the terms of Section 11.1 of
this Lease, Landlord may elect not to rebuild and/or restore the Premises, Building and/or Project, and instead terminate this Lease, by notifying Tenant in writing of such termination within sixty
(60) days after the date of discovery of the damage, such notice to include a termination date giving Tenant sixty (60) days to vacate the Premises, but Landlord may so elect only if the
Building or Project shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) in Landlord's
reasonable judgment, repairs cannot reasonably be completed within one hundred eighty (180) days after the date of discovery of the damage (when such repairs are made without the payment of
overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground lessor with respect to the Building or Project shall require that the insurance proceeds or any
portion thereof be used to retire the mortgage debt, or shall terminate the ground lease, as the case may be; (iii) the damage is not fully covered by Landlord's insurance policies; or
(iv) the damage occurs during the last twelve (12) months of the Lease Term; provided, however, that if Landlord does not elect to terminate this Lease pursuant to Landlord's termination
right as provided above, and the repairs cannot, in the reasonable opinion of Landlord, be completed within one hundred eighty (180) days after being commenced, Tenant may elect, no earlier
than sixty (60) days after the date of the damage and not later than ninety (90) 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, which date shall not be less than thirty (30) days nor more than sixty (60) days after the date such notice is given by Tenant. Furthermore, if neither
Landlord nor Tenant has terminated this Lease, and the repairs are not actually completed within such 180-day period, Tenant shall have the right to terminate this Lease during the first
five (5) business days of each calendar month following the end of such period until such time as the repairs are complete, by notice to Landlord (the "Damage
Termination Notice"), effective as of a date set forth in the Damage Termination Notice (the "Damage Termination Date"), which
Damage Termination Date shall not be less than ten (10) business days following the end of each such month. Notwithstanding the foregoing, if Tenant delivers a Damage Termination Notice to
Landlord, then Landlord shall have the right to suspend the occurrence of the Damage Termination Date for a period ending thirty (30) days after the Damage Termination Date set forth in the
Damage Termination Notice by delivering to Tenant, within five (5) business days of Landlord's receipt of the Damage Termination Notice, a certificate of Landlord's contractor responsible for
the repair of the damage certifying that it is such contractor's good faith judgment that the repairs shall be substantially completed within thirty (30) days after the Damage Termination Date.
If repairs shall be substantially completed prior to the expiration of such thirty-day period, then the Damage Termination Notice shall be of no force or effect, but if the repairs shall
not be substantially completed within such thirty-day period, then this Lease shall terminate upon the expiration of such thirty-day period. Notwithstanding the provisions of
this Section 11.2, Tenant shall have the right to terminate this Lease under this Section 11.2 only if each of the following conditions is satisfied: (a) the damage to the Project
by fire or other casualty was not caused by the negligence or intentional act of Tenant or its partners or subpartners and their respective officers, agents, servants, employees, and independent
contractors; (b) Tenant is not then in default under this Lease; (c) as a result of the damage, Tenant cannot reasonably conduct business from the Premises; and, (d) as a result
of the damage to the Project, Tenant does not occupy or use the Premises at all. 

16

   ARTICLE 12

NONWAIVER  

        No provision of this Lease shall be deemed waived by either party hereto unless expressly waived in a writing signed thereby. The waiver by either party hereto of
any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of same or any other term, covenant or condition herein contained. The
subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of
Tenant to pay the particular Rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein
stipulated shall be deemed a waiver of Landlord's right to receive the full amount due, nor shall any endorsement or statement on any check or payment or any letter accompanying such check or payment
be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the full amount due. No receipt of monies by Landlord from Tenant
after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant's right of possession hereunder, or after the giving of any notice shall reinstate, continue or
extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit, or after final judgment for
possession of the Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. 

ARTICLE 13

CONDEMNATION  

        If the whole or any part of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any public or
quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority in such manner as to require the use, reconstruction or
remodeling of any part of the Premises, Building or Project, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the
option to terminate this Lease effective as of the date possession is required to be surrendered to the authority. If more than twenty-five percent (25%) of the rentable square feet of the
Premises is taken, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180) days, Tenant shall have the option to terminate this
Lease effective as of the date possession is required to be surrendered to the authority. Tenant shall not because of such taking assert any claim against Landlord or the authority for any
compensation because of such taking and Landlord shall be entitled to the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available
to Tenant for any taking of Tenant's personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving
expenses, so long as such claims do not diminish the award available to Landlord, its ground lessor with respect to the Building or Project or its mortgagee, and such claim is payable separately to
Tenant. All Rent shall be apportioned as of the date of such termination. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately
abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of The California Code of Civil Procedure. Notwithstanding anything to the contrary
contained in this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of one hundred and eighty (180) days or less, then this Lease shall
not terminate but the Base Rent and the Additional Rent shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to
the total rentable square feet of the Premises. Landlord shall be entitled to receive the entire award made in connection with any such temporary taking. 

17

 

ARTICLE 14

ASSIGNMENT AND SUBLETTING  

        14.1    Transfers.    Other than as expressly set forth in Section 14.7, below, Tenant
shall not, without the prior written consent of Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder,
permit any assignment, or other transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or enter into any license or concession agreements or
otherwise permit the occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and
contractors (all of the foregoing, but excluding Permitted Transfers (defined in Section 14.7, below) are hereinafter sometimes referred to collectively as  "Transfers" and any person to whom any
Transfer is made or sought to be made is hereinafter sometimes referred to as a  "Transferee"). If Tenant desires Landlord's consent to any Transfer, Tenant shall notify Landlord in writing, which notice
(the  "Transfer Notice") shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more
than one hundred eighty (180) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the  "Subject Space"), (iii) all
of the terms of the proposed Transfer and the consideration therefor, including calculation of the "Transfer
Premium", as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or proposed
documentation pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer,
(iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal references and history of the proposed Transferee
and any other information reasonably required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such
Transferee's business and proposed use of the Subject Space and (v) an executed estoppel certificate from Tenant in the form attached hereto as Exhibit E. Any Transfer made without
Landlord's prior written consent shall, at Landlord's option, be null, void and of no effect, and shall, at Landlord's option, constitute a default by Tenant under this Lease. Whether or not Landlord
consents to any proposed Transfer, Tenant shall pay Landlord's review and processing fees, as well as any reasonable professional fees (including, without limitation, attorneys', accountants',
architects', engineers' and consultants' fees) incurred by Landlord, within thirty (30) days after written request by Landlord, in an amount not to exceed, in the aggregate, $1,500.00 for a
particular Transfer in the ordinary course of business. 

        14.2    Landlord's Consent.    Landlord shall not unreasonably withhold its consent to any
proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. Without limitation as to other reasonable grounds for withholding consent, the parties hereby
agree that it shall be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply: 

        14.2.1     The
Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Building or the Project, or
would be a significantly less prestigious occupant of the Building than Tenant; 

        14.2.2     The
Transferee intends to use the Subject Space for purposes which are not permitted under this Lease; 

        14.2.3     The
Transferee is either a governmental agency, or instrumentality thereof, (i) whose use and occupancy of the Premises would (A) likely
result in a material increase in the foot traffic to and from the Premises or the occupancy density within the Premises, (B) be for other than general office use, or (C) tend to increase
Landlord's costs in connection with operating, maintaining and insuring the Project and/or the Building, or (ii) who is associated with a political faction or orientation which is inconsistent
with the quality of the Project; 

18

 

        14.2.4     The
Transferee is not a party of reasonable financial worth and/or financial stability in light of the responsibilities to be undertaken in connection
with the Transfer on the date consent is requested; 

        14.2.5     The
proposed Transfer would cause a violation of another lease for space in the Project, or would give an occupant of the Project a right to cancel its
lease; 

        14.2.6     The
terms of the proposed Transfer will allow the Transferee to exercise a right of renewal, right of expansion, right of first offer, or other similar
right held by Tenant (or will allow the Transferee to occupy space leased by Tenant pursuant to any such right); 

        14.2.7     Either
the proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the
proposed Transferee, (i) occupies space in the Project at the time of the request for consent, or (ii) is negotiating with Landlord to lease space in the Project at such time; or 

        14.2.8     The
Transferee does not intend to occupy the entire Subject Space and conduct its business therefrom for a substantial portion of the term of the
Transfer. 

        If
Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 of this
Lease), Tenant may within six (6) months after Landlord's consent, but not later than the expiration of said six-month period, enter into such Transfer of the Premises or portion
thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if there
are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under
this Section 14.2, or (ii) which would cause the proposed Transfer to be more favorable to the Transferee than the terms set forth in Tenant's original Transfer Notice, Tenant shall
again submit the Transfer to Landlord for its approval and other action under this Article 14 (including Landlord's right of recapture, if any, under Section 14.4 of this Lease).
Notwithstanding anything to the contrary in this Lease, if Tenant or any proposed Transferee claims
that Landlord has unreasonably withheld or delayed its consent under Section 14.2 or otherwise has breached or acted unreasonably under this Article 14, their sole remedies shall be a
declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives all other remedies, including, without limitation, any right at law or equity to
terminate this Lease, on its own behalf and, to the extent permitted under all applicable laws, on behalf of the proposed Transferee. Tenant shall indemnify, defend and hold harmless Landlord from any
and all liability, losses, claims, damages, costs, expenses, causes of action and proceedings involving any third party or parties (including without limitation Tenant's proposed subtenant or
assignee) who claim they were damaged by Landlord's wrongful withholding or conditioning of Landlord's consent. 

        14.3    Transfer Premium.    If Landlord consents to a Transfer, as a condition thereto which
the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any "Transfer Premium," as that term is defined in this Section 14.3, received by Tenant from such
Transferee. "Transfer Premium" shall mean all rent, additional rent or other consideration payable by such Transferee in connection with the Transfer in
excess of the Rent and Additional Rent payable by Tenant under this Lease during the term of the Transfer on a per rentable square foot basis if less than all of the Premises is transferred, after
deducting the reasonable expenses incurred by Tenant for (i) any changes, alterations and improvements to the Premises in connection with the Transfer, (ii) any
out-of-pocket concessions reasonably provided to the Transferee, and (iii) any brokerage commissions in connection with the Transfer. "Transfer Premium" shall also
include, but not be limited to, key money, bonus money or other cash consideration paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for
services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in 

19

 

connection
with such Transfer. In the calculations of the Rent (as it relates to the Transfer Premium calculated under this Section 14.3), the Rent paid during each annual period for the
Subject Space shall be computed after adjusting such rent to the actual effective rent to be paid, taking into consideration any and all leasehold concessions granted in connection therewith,
including, but not limited to, any rent credit and tenant improvement allowance. For purposes of calculating any such effective rent all such concessions shall be amortized on a
straight-line basis over the relevant term. 

        14.4    Landlord's Option as to Subject Space.    Notwithstanding anything to the contrary
contained in this Article 14, Landlord shall have the option, by giving written notice to Tenant within ten (10) business days after receipt of any Transfer Notice, to recapture the
Subject Space, if the proposed Transfer is either (i) a sublease of the Subject Space for all or substantially all of the remainder of the Lease Term, or (ii) an assignment of this
Lease. Such recapture notice shall cancel and terminate this Lease with respect to the Subject Space as of the date stated in the Transfer Notice as the effective date of the proposed Transfer until
the last day of the term of the Transfer as set forth in the Transfer Notice (or at Landlord's option, shall cause the Transfer to be made to Landlord or its agent, in which case the parties shall
execute the Transfer documentation promptly thereafter). In the event of a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Rent reserved
herein shall be prorated on the basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in the Premises, and this Lease as so
amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of the same. If Landlord declines, or fails to elect in a
timely manner
to recapture the Subject Space under this Section 14.4, then, provided Landlord has consented to the proposed Transfer, Tenant shall be entitled to proceed to transfer the Subject Space to the
proposed Transferee, subject to provisions of this Article 14. 

        14.5    Effect of Transfer.    If Landlord consents to a Transfer, (i) the terms and
conditions of this Lease shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee,
(iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord,
(iv) Tenant shall furnish upon Landlord's request a complete statement, certified by an independent certified public accountant, or Tenant's chief financial officer, setting forth in detail the
computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into with respect thereto, whether
with or without Landlord's consent, shall relieve Tenant or any guarantor of the Lease from any liability under this Lease, including, without limitation, in connection with the Subject Space.
Landlord or its authorized representatives shall have the right at all reasonable times to audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make
copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency, and if understated by more
than two percent (2%), Tenant shall pay Landlord's costs of such audit. 

        14.6    Additional Transfers.    For purposes of this Lease, the term  "Transfer" shall also
include the following (but excluding Permitted Transfers): (i) if Tenant is a partnership, the withdrawal or change,
voluntary, involuntary or by operation of law, of fifty percent (50%) or more of the partners, or transfer of fifty percent (50%) or more of partnership interests, within a twelve (12)-month period,
or the dissolution of the partnership without immediate reconstitution thereof, and (ii) if Tenant is a closely held corporation (i.e., whose
stock is not publicly held and not traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or other reorganization of Tenant or (B) the sale or other
transfer of an aggregate of fifty percent (50%) or more of the voting shares of Tenant (other than to immediate family members by reason of gift or death), within a twelve (12)-month period, or
(C) the sale, mortgage, hypothecation or pledge of an aggregate of fifty percent (50%) or more of the value of the unencumbered assets of Tenant within a twelve (12)-month period. 

20

 

        14.7    Non-Transfers.    Notwithstanding anything to the contrary contained in
this Article 14, but subject to the remaining terms of this Section 14.7, the following shall not be deemed a Transfer under this Article 14: (i) an assignment or
subletting of all or a portion of the Premises to an affiliate of Tenant (an entity which is controlled by, controls, or is under common control with, Tenant), (ii) an assignment of the
Premises to an entity which acquires all or substantially all of the assets or interests (partnership, stock or other) of Tenant, (iii) an assignment to an entity engaged in a joint venture
with Tenant, (iv) an assignment of the Premises to an entity which is the resulting entity of a merger or consolidation with Tenant, (v) the sale or transfer of the capital stock of
Tenant in connection with a bona fide financing or capitalization for the benefit of Tenant, or (vi) if Tenant becomes a publicly traded company. Notwithstanding anything to the contrary in
this Section 14.7, the foregoing shall only apply to the extent Tenant notifies Landlord of any such assignment or sublease and promptly supplies
Landlord with any documents or information requested by Landlord regarding such assignment or sublease or such affiliate, and provided that such assignment or sublease is not a subterfuge by Tenant to
avoid its obligations under this Lease, and that such transferee or affiliate shall have a net worth (not including goodwill as an asset) computed in accordance with generally accepted accounting
principles (the "Net Worth") at least equal to the Net Worth on the date of the transfer of the Original Tenant. The transfers specified in items
(i)—(vi) above shall be referred to as a "Permitted Transfer" and such a transferee as a "Permitted
Transferee." "Control," as used in this Section 14.7, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting
securities of, or possession of the right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. 

        14.8    Occurrence of Default.    Any sublease, license or occupancy agreement hereunder shall
be subordinate and subject to the provisions of this Lease, and if this Lease shall be terminated during the term of any such Transfer, Landlord shall have the right to: (i) treat such Transfer
as cancelled and repossess the Subject Space by any lawful means, or (ii) require that such Transferee attorn to and recognize Landlord as its landlord under any such Transfer. If Tenant shall
be in default under this Lease, Landlord is hereby irrevocably authorized, as Tenant's agent and attorney-in-fact, to direct any such Transferee to make all payments under or
in connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant's obligations under this Lease) until such default is cured. Such Transferee shall rely on any
representation by Landlord that Tenant is in default hereunder, without any need for confirmation thereof by Tenant. Upon any assignment, the assignee shall assume in writing all obligations and
covenants of Tenant thereafter to be performed or observed under this Lease. No collection or acceptance of rent by Landlord from any Transferee shall be deemed a waiver of any provision of this
Article 14 or the approval of any Transferee or a release of Tenant from any obligation under this Lease, whether theretofore or thereafter accruing. In no event shall Landlord's enforcement of
any provision of this Lease against any Transferee be deemed a waiver of Landlord's right to enforce any term of this Lease against Tenant or any other person. If Tenant's obligations hereunder have
been guaranteed, Landlord's consent to any Transfer shall not be effective unless the guarantor also consents to such Transfer. 

ARTICLE 15

SURRENDER OF PREMISES: OWNERSHIP AND

REMOVAL OF TRADE FIXTURES  

        15.1    Surrender of Premises.    No act or thing done by Landlord or any agent or employee of
Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in writing by Landlord. The
delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are
thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly 

21

 

terminated.
The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord shall
operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises or terminate any or all such sublessees or subtenancies. 

        15.2    Removal of Tenant Property by Tenant.    Upon the expiration of the Lease Term, or
upon any earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition
as when Tenant took possession and as thereafter improved by Landlord and/or Tenant, reasonable wear and tear and repairs which are specifically made the responsibility of Landlord hereunder excepted.
Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all debris and rubbish, and such items of furniture, equipment, business
and trade fixtures, free-standing cabinet work, movable partitions and other articles of personal property owned by Tenant or installed or placed by Tenant at its expense in the Premises,
and such similar articles of any other persons claiming under Tenant, as Landlord may, in its sole discretion, require to be removed, and Tenant shall repair at its own expense all damage to the
Premises and Building resulting from such removal. 

ARTICLE 16

HOLDING OVER  

        If Tenant holds over after the expiration of the Lease Term or earlier termination thereof, with or without the express or implied consent of Landlord, such
tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Rent shall be payable at a monthly
rate equal to one hundred fifty percent (150%) of the Rent applicable during the last rental period of the Lease Term under this Lease. Such month-to-month tenancy shall be
subject to every other applicable term, covenant and agreement contained herein. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant,
and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The
provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the
Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from
all loss, costs (including reasonable attorneys' fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any
claims made by any succeeding tenant founded upon such failure to surrender and any lost profits to Landlord resulting therefrom. 

ARTICLE 17

ESTOPPEL CERTIFICATES  

        Within five (5) days following a request in writing by Landlord, Tenant shall execute, acknowledge and deliver to Landlord an estoppel certificate, which,
as submitted by Landlord, shall be substantially in the form of Exhibit E, attached hereto (or such other form as may be
required by any prospective mortgagee or purchaser of the Project, or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other
information reasonably requested by Landlord or Landlord's mortgagee or prospective mortgagee. Any such certificate may be relied upon by any prospective mortgagee or purchaser of all or any portion
of the Project. Tenant shall execute and deliver whatever other instruments may be reasonably required for such purposes. At any time during the Lease Term, Landlord may require Tenant to provide
Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year. Such statements shall be prepared in accordance with
generally accepted accounting principles and, if 

22

 

such
is the normal practice of Tenant, shall be audited by an independent certified public accountant. Failure of Tenant to timely execute, acknowledge and deliver such estoppel certificate or other
instruments shall constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. Landlord hereby
agrees to provide to Tenant an estoppel certificate signed by Landlord, containing the same types of information, and within the same periods of time, as set forth above, with such changes as are
reasonably necessary to reflect that the estoppel certificate is being granted and signed by Landlord to Tenant, or the party designated by Tenant in writing to Landlord, rather than from Tenant to
Landlord or a lender. 

ARTICLE 18

SUBORDINATION  

        This Lease shall be subject and subordinate to all present and future ground or underlying leases of the Building or Project and to the lien of any mortgage,
trust deed or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications, consolidations and replacements
thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages, trust deeds or other encumbrances, or the lessors
under such ground lease or underlying leases, require in writing that this Lease be superior thereto. Landlord shall use commercially reasonable efforts to provide Tenant with a nondisturbance
agreement in a commercially reasonable form from Landlord's presently existing lender holding a first deed of trust on the Project, provided that the receipt of which shall not be a condition
precedent to Tenant's agreement to comply with the terms of this Lease. Landlord's delivery to Tenant of commercially reasonable non-disturbance agreement(s) in favor of Tenant from any
ground lessor, mortgage holder or lien holder of Landlord who comes into existence following the date of this Lease but prior to the expiration of the Lease Term shall be in consideration of, and a
condition precedent to, Tenant's agreement to subordinate this Lease to any such future ground lessor, mortgage holder or lien holder. Tenant covenants and agrees in the event any proceedings are
brought for the foreclosure of any such mortgage or deed in lieu thereof (or if any ground lease is terminated), to attorn, without any deductions or set-offs whatsoever, to the lienholder
or purchaser or any successors thereto upon any such foreclosure sale or deed in lieu thereof (or to the ground lessor), if so requested to do so by such purchaser or lienholder or ground lessor, and
to recognize such purchaser or lienholder or ground lessor as the lessor under this Lease, provided such lienholder or purchaser or ground lessor shall agree to accept this Lease and not disturb
Tenant's occupancy, so long as Tenant timely pays the rent and observes and performs the terms, covenants and conditions of this Lease to be observed and performed by Tenant. Landlord's interest
herein may be assigned as security at any time to any lienholder. Tenant shall, within five (5) days of request by Landlord, execute such further instruments or assurances as Landlord may
reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases. Tenant waives the provisions of
any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant
hereunder in the event of any foreclosure proceeding or sale. 

23

 

ARTICLE 19

DEFAULTS; REMEDIES  

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

        19.1.1     Any
failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due unless such failure is
cured within three (3) days after notice; or 

        19.1.2     Except
where a specific time period is otherwise set forth for Tenant's performance in this Lease, in which event the failure to perform by Tenant
within such time period shall be a default by Tenant under this Section 19.1.2, any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be
observed or performed by Tenant where such failure continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided that if the nature of such default is such that
the same cannot reasonably be cured within a thirty (30) day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter
diligently proceeds to rectify and cure such default; or 

        19.1.3     To
the extent permitted by law, a general assignment by Tenant or any guarantor of this Lease for the benefit of creditors, or the taking of any
corporate action in furtherance of bankruptcy or dissolution whether or not there exists any proceeding under an insolvency or bankruptcy law, or the filing by or against Tenant or any guarantor of
any proceeding under an insolvency or bankruptcy law, unless in the case of a proceeding filed against Tenant or any guarantor the same is dismissed within sixty (60) days, or the appointment
of a trustee or receiver to take possession of all or substantially all of the assets of Tenant or any guarantor, unless possession is restored to Tenant or such guarantor within thirty
(30) days, or any execution or other judicially authorized seizure of all or substantially all of Tenant's assets located upon the Premises or of Tenant's interest in this Lease, unless such
seizure is discharged within thirty (30) days; or 

        19.1.4     Abandonment
of all or a substantial portion of the Premises by Tenant; or 

        19.1.5     The
failure by Tenant to observe or perform according to the provisions of Articles 5, 14, 17 or 18 of this Lease where such failure continues for more
than two (2) business days after notice from Landlord. 

        The
notice periods provided herein are in lieu of, and not in addition to, any notice periods provided by law. 

        19.2    Remedies Upon Default.    Upon the occurrence of any event of default by Tenant,
Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct, separate and cumulative), the option to pursue any one or
more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 

        19.2.1     Terminate
this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without
prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be
occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: 

        (i)    The
worth at the time of any unpaid rent which has been earned at the time of such termination; plus 

24

 

        (ii)   The
worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided; plus 

        (iii)  The
worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided; plus 

        (iv)  Any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the
Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and 

        (v)   At
Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. 

        The
term "rent" as used in this Section 19.2 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether
to Landlord or to others. As used in Paragraphs 19.2.1(i) and (ii), above, the "worth at the time of award" shall be computed by allowing interest at the rate set forth in Article 25 of
this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Paragraph 19.2.1(iii) above, the "worth at the time of award" shall be computed
by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 

        19.2.2     Landlord
shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and
abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on
account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as
it becomes due. 

        19.2.3     Landlord
shall at all times have the rights and remedies (which shall be cumulative with each other and cumulative and in addition to those rights and
remedies available under Sections 19.2.1 and 19.2.2, above, or any law or other provision of this Lease), without prior demand or notice except as required by applicable law, to seek any declaratory,
injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. 

        19.3    Form of Payment After Default.    Following the occurrence of an event of default by
Tenant, Landlord shall have the right to require that any or all subsequent amounts paid by Tenant to Landlord hereunder, whether to cure the default in question or otherwise, be paid in the form of
cash, money order, cashier's or certified check drawn on an institution acceptable to Landlord, or by other means approved by Landlord, notwithstanding any prior practice of accepting payments in any
different form. 

        19.4    Efforts to Relet.    No re-entry or repossession, repairs, maintenance,
changes, alterations and additions, reletting, appointment of a receiver to protect Landlord's interests hereunder, or any other action or omission by Landlord shall be construed as an election by
Landlord to terminate this Lease or Tenant's right to possession, or to accept a surrender of the Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant's
obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right otherwise available under any law to redeem or
reinstate this Lease. 

25

 

        19.5    Rent Abatement.    If Landlord fails to perform the obligations required of Landlord
under the terms and conditions of this Lease and such failure causes all or a portion of the Premises to be untenantable and unusable by Tenant and such failure relates to the nonfunctioning of the
heat, ventilation, and air conditioning system in the Premises, the electricity in the Premises, the nonfunctioning of the elevator service to the Premises, or a failure to provide access to the
Premises, Tenant shall give Landlord notice (the "Abatement Notice"), specifying such failure to perform by Landlord (the  "Landlord Default"). If Landlord
has not cured such Landlord Default within five (5) business days after the receipt of the Abatement Notice,
Tenant may, upon written notice to Landlord, immediately abate Rent payable under this Lease for that portion of the Premises rendered untenantable and not used by Tenant, for the period beginning on
the date five (5) business days after the Abatement Notice to the earlier of the date Landlord cures such Landlord Default or the date Tenant recommences the use of such portion of the
Premises. Such right to abate Rent shall be Tenant's sole and exclusive remedy with respect to the abatement of Rent at law or in equity for a Landlord Default. Except for Tenant's rights
to abate Rent as set forth in this Section 19.5 or as otherwise expressly set forth elsewhere in this Lease, nothing contained herein shall be interpreted to mean that Tenant is excused from
paying Rent due hereunder. 

ARTICLE 20

COVENANT OF QUIET ENJOYMENT  

        Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all the other
terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term, peaceably and quietly have, hold and
enjoy the Premises subject to the terms, covenants, conditions, provisions and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is
in lieu of any other covenant express or implied. 

ARTICLE 21

SECURITY DEPOSIT  

        Concurrently with Tenant's execution of this Lease, Tenant shall deposit with Landlord a security deposit (the "Security
Deposit") in the amount set forth in Section 6 of the Summary, as security for the faithful performance by Tenant of all of its obligations under this Lease. If Tenant
defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, the removal of property and the repair of resultant damage,
Landlord may, without notice to Tenant, but shall not be required to apply all or any part of the Security Deposit for the payment of any Rent or any other sum in default and Tenant shall, upon demand
therefor, restore the Security Deposit to its original amount. In the event that Tenant elects to exercise its rights with respect to the First Option Term or the Second Option Term as set forth in
Section 2.2 of this Lease, then the Security Deposit held by Landlord shall be increased in accordance with the terms of such Section 2.2. Any unapplied portion of the Security Deposit
shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within thirty (30) days following the expiration or earlier termination of the Lease
Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any successor statute. 

26

 

ARTICLE 22

INTENTIONALLY OMITTED  

ARTICLE 23

SIGNS  

        23.1    Full Floors.    Subject to Landlord's prior written approval, in its sole discretion,
and provided all signs are in keeping with the quality, design and style of the Building and Project, Tenant, if the Premises comprise an entire floor of the Building, at its sole cost and expense,
may install identification signage anywhere in the Premises including in the elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 

        23.2    Multi-Tenant Floors.    If other tenants occupy space on the floor on which the
Premises is located, Tenant's identifying signage shall be provided by Landlord, at Tenant's cost, and such signage shall be comparable to that used by Landlord for other similar floors in the
Building and shall comply with Landlord's Building standard signage program. 

        23.3    Prohibited Signage and Other Items.    Any signs, notices, logos, pictures, names or
advertisements which are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Tenant may not install any signs on
the exterior or roof of the Project or the Common Areas. Any signs, window coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other
items visible from the exterior of the Premises or Building, shall be subject to the prior approval of Landlord, in its sole discretion. 

ARTICLE 24

COMPLIANCE WITH LAW  

        Tenant shall not do anything or suffer anything to be done in or about the Premises or the Project which will in any way conflict with any law, statute, ordinance
or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated (collectively, "Laws"). At its sole
cost and expense, Tenant shall promptly comply with all such Laws. Should any Laws now or hereafter be imposed on Landlord or Tenant by a state, federal or local governmental body charged with the
establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or tenants, then Tenant agrees, at its sole cost and expense, to comply
promptly with such Laws. Tenant shall be responsible, at its sole cost and expense, to make all alterations to the Premises (including the restrooms and elevator lobbies on the floor of the Building
containing the Premises) as are required to comply with Laws which relate to (i) Tenant's use of the Premises for non-general office use, (ii) any Alterations in the
Premises, or (iii) the Base Building, but, as to the Base Building, only to the extent such obligations are triggered by Tenant's Alterations or use of the Premises for non-general
office use. Landlord shall comply with any Laws which relate to a portion of the Base Building, unless such compliance obligations are triggered by Tenant's use of the Premises for
non-general office use or any Alterations in the Premises, in which event such compliance obligations shall be at Tenant's sole cost and expense. The judgment of any court of competent
jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of
that fact as between Landlord and Tenant. 

ARTICLE 25

LATE CHARGES  

        If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord's designee within five (5) days after said amount
is due, then Tenant shall pay to Landlord a 

27

 

late
charge equal to ten percent (10%) of the overdue amount plus any attorneys' fees incurred by Landlord by reason of Tenant's failure to pay Rent and/or other charges when due hereunder. The late
charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord's other rights and remedies hereunder or at law and shall not be construed as liquidated
damages or as limiting Landlord's remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid within ten (10) days after
the date they are due shall bear interest from the date when due until paid at a rate per annum equal to the lesser of (i) the annual "Bank Prime Loan" rate cited in the Federal Reserve
Statistical Release Publication G.13(415), published on the first Tuesday of each calendar month (or such other comparable index as Landlord and Tenant shall reasonably agree upon if such rate ceases
to be published) plus four (4) percentage points, and (ii) the highest rate permitted by applicable law. 

ARTICLE 26

LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT  

        26.1    Landlord's Cure.    All covenants and agreements to be kept or performed by Tenant
under this Lease shall be performed by Tenant at Tenant's sole cost and expense and without any reduction of Rent, except to the extent, if any, otherwise expressly provided herein. If Tenant shall
fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under
Section 19.1.2, above, unless a specific time period is otherwise stated in this Lease, Landlord may, but shall not be obligated to, make any such payment or perform any such act on Tenant's
part without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder. 

        26.2    Tenant's Reimbursement.    Except as may be specifically provided to the contrary in
this Lease, Tenant shall pay to Landlord, upon delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred by Landlord in
connection with the remedying by Landlord of Tenant's defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses
referred to in Article 10 of this Lease; and (iii) sums equal to all expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in
enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all legal fees and other amounts so expended. Tenant's obligations under
this Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 

ARTICLE 27

ENTRY BY LANDLORD  

        Landlord reserves the right at all reasonable times and upon reasonable notice to Tenant (except in the case of an emergency) to enter the Premises to
(i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or tenants, or to current or prospective mortgagees, ground or underlying lessors or insurers;
(iii) post notices of nonresponsibility; or (iv) alter, improve or repair the Premises or the Building, or for structural alterations, repairs or improvements to the Building or the
Building's systems and equipment. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the Premises at any time to (A) perform services required of
Landlord, including janitorial service; (B) take possession due to any breach of this Lease in the manner provided herein; and (C) perform any covenants of Tenant which Tenant fails to
perform. Landlord may make any such entries without the abatement of Rent and may take such reasonable steps as required to accomplish the stated purposes. Tenant hereby waives any claims for damages
or for any injuries or inconvenience to or interference with Tenant's business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each
of the above purposes, Landlord shall at all times have a key with which to unlock all the doors in the Premises, excluding 

28

 

Tenant's
vaults, safes and special security areas designated in advance by Tenant. In an emergency, Landlord shall have the right to use any means that landlord may deem proper to open the doors in
and to the Premises. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an
actual or constructive eviction of Tenant from any portion of the Premises. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations
except as otherwise expressly agreed to be performed by Landlord herein. 

ARTICLE 28

TENANT PARKING  

        Tenant shall have the right to rent from Landlord, commencing on the Lease Commencement Date, up to the amount of parking passes set forth in Section 7 of
the Summary, on a monthly basis throughout the Lease Term, which parking passes shall pertain to the Project parking facility located adjacent to the Building (the "Parking
Facilities"); provided, however, if at any time during the Lease Term Tenant fails to rent one or more of such parking passes for a period of six (6) or more consecutive
months, then Tenant shall thereafter only have the right to rent such unused parking passes on an as available basis. Tenant shall pay to Landlord, on a monthly basis, the prevailing rate charged from
time to time at the location of such parking passes for all automobile parking passes rented pursuant to this Article 28. In addition, Tenant shall be responsible for the full amount of any
taxes imposed by any governmental authority in connection with the renting of such parking passes by Tenant or the use of the Parking Facilities by Tenant. Tenant's continued right to use the parking
passes is conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly operation and use of the Parking Facilities, including any sticker or
other identification system established by Landlord or an operator of the Parking Facilities, Tenant's cooperation in seeing that Tenant's employees and visitors also comply with such rules and
regulations and Tenant not being in default under this Lease. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects of the Parking Facilities
at any time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, close-off
or restrict access to the Parking Facilities for purposes of permitting or facilitating any such construction, alteration or improvements. Landlord may delegate its responsibilities hereunder to a
parking operator in which case such parking operator shall have all the rights of control attributed hereby to the Landlord. The parking passes rented by Tenant pursuant to this Article 28 are
provided to Tenant solely for use by Tenant's own personnel and such passes may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord's prior approval. Tenant may
validate visitor parking by such method or methods as the Landlord may establish, at the validation rate from time to time generally applicable to visitor parking. 

ARTICLE 29

MISCELLANEOUS PROVISIONS  

        29.1    Terms: Captions.    The words "Landlord" and "Tenant" as used herein shall include the
plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may
require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or
alter the meaning of such Articles and Sections. 

        29.2    Binding Effect.    Subject to all other provisions of this Lease, each of the
covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective
heirs, personal 

29

 

representatives,
successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 

        29.3    No Air Rights.    No rights to any view or to light or air over any property, whether
belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by
reason of any repairs, improvements, maintenance or cleaning in or about the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant's obligations
under this Lease. 

        29.4    Modification of Lease.    Should any current or prospective mortgagee or ground lessor
for the Building or Project require a modification of this Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the
rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are reasonably required therefor and to
deliver the same to Landlord within ten (10) days following a request therefor. At the request of Landlord or any mortgagee or ground lessor, Tenant agrees to execute a short form of Lease and
deliver the same to Landlord within ten (10) days following the request therefor. 

        29.5    Transfer of Landlord's Interest.    Tenant acknowledges that Landlord has the right to
transfer all or any portion of its interest in the Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all
liability accruing under this Lease after the date of such transfer, and Tenant agrees to look solely to such transferee for the performance of Landlord's obligations hereunder after the date of
transfer and such transferee shall be deemed to have fully assumed and be liable for all obligations of this Lease to be performed by Landlord, including the return of any Security Deposit, and Tenant
shall attorn to such transferee. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall
not release Landlord from its obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder. 

        29.6    Prohibition Against Recording.    Except as provided in Section 29.4 of this
Lease, neither this Lease, nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant. 

        29.7    Landlord's Title.    Landlord's title is and always shall be paramount to the title of
Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. 

        29.8    Relationship of Parties.    Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant. 

        29.9    Application of Payments.    Landlord shall have the right to apply payments received
from Tenant pursuant to this Lease, regardless of Tenant's designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion,
may elect. 

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

        29.11    Partial Invalidity.    If any term, provision or condition contained in this Lease
shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to
which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible
permitted by law. 

30

 

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

        29.13    Landlord Exculpation.    The liability of Landlord or the Landlord Parties to Tenant
for any default by Landlord under this Lease or arising in connection herewith or with Landlord's operation, management, leasing, repair, renovation, alteration or any other matter relating to the
Project or the Premises shall be limited solely and exclusively to an amount which is equal to the lesser of (a) the interest of Landlord in the Building or (b) the equity interest
Landlord would have in the Building if the Building were encumbered by third-party debt in an amount equal to eighty percent (80%) of the value of the Building (as such value is determined by
Landlord), provided that in no event shall such liability extend to any sales or insurance proceeds received by Landlord or the Landlord Parties in connection with the Project, Building or Premises.
Neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal
liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability contained in this Section 29.13 shall inure to the benefit of Landlord's and the
Landlord Parties' present and future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their respective partners, heirs, successors and assigns. Under no
circumstances shall any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust), have any liability for the
performance of Landlord's obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any circumstances for injury or
damage to, or interference with, Tenant's business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in
each case, however occurring. 

        29.14    Entire Agreement.    It is understood and acknowledged that there are no oral
agreements between the parties hereto affecting this Lease and this Lease constitutes the parties' entire agreement with respect to the leasing of the Premises and supersedes and cancels any and all
previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and
none thereof shall be used to interpret or construe this Lease. None of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by
the parties hereto. 

        29.15    Right to Lease.    Landlord reserves the absolute right to effect such other
tenancies in the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Building or Project. Tenant does not rely on the fact, nor does
Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building or Project. 

        29.16    Force Majeure.    Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the
reasonable control of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease and except as to
Tenant's obligations under Articles 5 and 24 of this Lease (collectively, a "Force Majeure"), notwithstanding anything to the contrary contained in this
Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of
either party, that time period shall be extended by the period of any delay in such party's performance caused by a Force Majeure. 

31

 

        29.17    Waiver of Redemption by Tenant.    Tenant hereby waives, for Tenant and for all those
claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant's right of occupancy of the Premises after any
termination of this Lease. 

        29.18    Notices.    All notices, demands, statements, designations, approvals or other
communications (collectively, "Notices") given or required to be given by either party to the other hereunder or by law shall be in writing, shall be
(A) sent by United States certified or registered mail, postage prepaid, return receipt requested ("Mail"), (B) transmitted by telecopy,
if such telecopy is promptly followed by a Notice sent by Mail, (C) delivered by a nationally recognized overnight courier, or (D) delivered personally. Any Notice shall be sent,
transmitted, or delivered, as the case may be, to Tenant at the appropriate address set forth in Section 8 of the Summary, or to such other place as Tenant may from time to time designate in a
Notice to Landlord, or to Landlord at the addresses set forth in Section 9 of the Summary, or to such other places as Landlord may from time to time designate in a Notice to Tenant. Any Notice
will be deemed given (i) three (3) days after the date it is posted if sent by Mail, (ii) the date the telecopy is transmitted, (iii) the date the overnight courier
delivery is made, or (iv) the date personal delivery is made or attempted to be made. If Tenant is notified of the identity and address of Landlord's mortgagee or ground or underlying lessor,
Tenant shall give to such mortgagee or ground or underlying lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail, and such mortgagee or ground
or underlying lessor shall be given a reasonable opportunity to cure such default prior to Tenant's exercising any remedy available to Tenant. 

        29.19    Joint and Several.    If there is more than one Tenant, the obligations imposed upon
Tenant under this Lease shall be joint and several. 

        29.20    Authority.    Each party executing this Lease hereby represents and warrants that
such party is a duly formed and existing entity qualified to do business in California and that such party has full right and authority to execute and deliver this Lease and that each person signing
on behalf of such party is authorized to do so. Tenant shall, within ten (10) days after execution of this Lease, deliver to Landlord satisfactory evidence of such authority and, if a
corporation, upon demand by Landlord, also deliver to Landlord satisfactory evidence of (i) good standing in Tenant's state of incorporation and (ii) qualification to do business in
California. 

        29.21    Attorneys' Fees.    In the event that either Landlord or Tenant should bring suit for
the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision of this Lease or for any other relief against the other, then all costs and
expenses, including reasonable attorneys' fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have
accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment. 

        29.22    Governing Law; WAIVER OF TRIAL BY JURY.    This Lease shall be construed and enforced
in accordance with the laws of the State of California. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY CONSENT TO (I) THE JURISDICTION OF ANY COMPETENT COURT WITHIN
THE STATE OF CALIFORNIA, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY CALIFORNIA LAW, AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, TENANTS USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY 

32

 

REMEDY.
IN THE EVENT LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY NATURE OR DESCRIPTION
(UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW. 

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

        29.24    Brokers.    Landlord and Tenant hereby warrant to each other that they have had no
dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 10 of the Summary (the  "Brokers"), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease; provided that
Tenant acknowledges that Landlord shall have no obligation to pay any brokerage commissions or other fees to Irving Hughes and that Tenant shall pay all brokerage commissions and other fees due to
Irving Hughes pursuant to a separate written agreement between Tenant and Irving Hughes. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any
and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys' fees) with respect to any leasing commission or equivalent
compensation alleged to be owing on account of any dealings with any real estate broker or agent, occurring by, through, or under the indemnifying party, Landlord acknowledging that it is Landlord's
obligation to pay any compensation due to BRE Commercial/NAI and Tenant acknowledging that it is Tenant's obligation to pay any compensation due to the Irving Hughes Group in connection with this
Lease. The terms of this Section 29.24 shall survive the expiration or earlier termination of this Lease. 

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

        29.26    Project or Building Name and Signage.    Landlord shall have the right at any time to
change the name of the Project or Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or Building as Landlord may, in Landlord's sole
discretion, desire. Tenant shall not use the name of the Project or Building or use pictures or illustrations of the Project or Building in advertising or other publicity or for any purpose other than
as the address of the business to be conducted by Tenant in the Premises, without, the prior written consent of Landlord. 

        29.27    Counterparts.    This Lease may be executed in counterparts with the same effect as
if both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 

        29.28    Confidentiality.    Tenant acknowledges that the content of this Lease and any
related documents are confidential information. Tenant shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other
than Tenant's financial, legal, and space planning consultants, or as required by applicable law. 

        29.29    Transportation Management.    Tenant shall fully comply with all present or future
programs intended to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action for the transportation planning and
management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or
entities. 

33

 

        29.30    Building Renovations.    It is specifically understood and agreed that Landlord has
made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof and
that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant except as specifically set forth herein. Notwithstanding the foregoing, Tenant
hereby acknowledges that Landlord is currently renovating or may during the Lease Term renovate, improve, alter, or modify (collectively, the  "Renovations") the Project, the Building and/or the Premises,
 including, without limitation, the Common Areas, the parking structure, systems and
equipment, roof, and structural portions of the same, which Renovations may include, without limitation, (i) constructing additional improvements in or on the Project, (ii) installing
sprinklers in the Common Areas and tenant spaces, (iii) modifying the common areas and tenant spaces to comply with applicable laws and regulations, including regulations relating to the
physically disabled, seismic conditions, and building safety and security, and (iii) installing new floor covering, lighting, and wall coverings in the Common Areas. In connection with any
Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in or on the Building and/or the Project, as the case may be, limit or eliminate access to portions of
the Project, including portions of the Common Areas, or perform work in or on the Building and/or the Project, as the case may be, which work may create noise, dust or
leave debris in the Building. Tenant hereby agrees that such Renovations and Landlord's actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor
entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant's business arising
from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant's personal property or
improvements resulting from the Renovations or Landlord's actions in connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or Landlord's actions. 

        29.31    No Violation.    Tenant hereby warrants and represents that neither its execution of
nor performance under this Lease shall cause Tenant to be in violation of any agreement, instrument, contract, law, rule or regulation by which Tenant is bound, and Tenant shall protect, defend,
indemnify and hold Landlord harmless against any claims, demands, losses, damages, liabilities, costs and expenses, including, without limitation, reasonable attorneys' fees and costs, arising from
Tenant's breach of this warranty and representation. 

        29.32    Office and Communications Services.    

        29.32.1    Provider of Services.    Landlord has advised Tenant that certain office and
communications services may be offered to tenants of the Building by one or more concessionaires under contract to Landlord (each a "Provider," and, collectively, "Providers"). Tenant shall be
permitted to contract with one or more Providers for the provision of any or all of such services on such terms and conditions as Tenant and such Providers may agree, subject to the terms of this
Lease, including, without limitation, Section 29.33, below. 

        29.32.2    Other Terms.    Tenant acknowledges and agrees that: (i) Landlord has made
no warranty or representation to Tenant with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii) no Provider is acting as the agent or
representative of Landlord in the provision of such services, and Landlord shall have no liability or responsibility for any failure or inadequacy of such services, or any equipment or facilities used
in the furnishing thereof, or any act or omission of any Provider, or its agents, employees, representatives, officers or contractors; (iii) Landlord shall have no responsibility or liability
for the installation, alteration, repair, maintenance, furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iv) any contract or other agreement
between Tenant and any Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting the foregoing, no default or
failure of such Provider with respect 

34

 

to
any such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely
performance of its obligations hereunder, or entitle Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any accrual or
constructive eviction of Tenant, or otherwise give rise to any other claim of any nature against Landlord. 

        29.33    Communications and Computer Lines.    Tenant may install, maintain, replace, remove
or use any communications or computer wires and cables (collectively, the "Lines") at the Project in or serving the Premises, provided that
(i) Tenant shall obtain Landlord's prior written consent, use either Landlord's designated contractor or an experienced and qualified contractor approved in writing by Landlord (in which event
Landlord's designated contractor, at Tenant's expense, shall accompany and supervise Tenant's approved contractor), and comply with all of the other provisions of Articles 7 and 8 of this Lease,
(ii) an acceptable number of spare Lines and space for additional Lines shall be maintained for existing and future occupants of the Project, as determined in Landlord's reasonable opinion,
(iii) the Lines therefor (including riser cables) shall be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be surrounded by a protective conduit
reasonably acceptable to Landlord, (iv) any new or existing Lines servicing the Premises shall comply with all applicable governmental laws and regulations, (v) as a condition to
permitting the installation of new Lines, Landlord may require that Tenant remove existing Lines located in or serving the Premises and repair any damage in connection with such removal, and
(vi) Tenant shall pay all costs in connection therewith. Landlord reserves the right to require that Tenant remove any Lines located in or serving the Premises which are installed in violation
of these provisions, or which are at any time in violation of any laws or represent a dangerous or potentially dangerous condition. 

ARTICLE 30

ASBESTOS DISCLOSURES  

        Landlord has advised Tenant that there is asbestos-containing material ("ACM") in the Building. Attached hereto as  Exhibit F is a disclosure statement regarding ACM in the Building. Tenant acknowledges that such notice complies with the requirements of
Section 25915 et seq. and Section 25359.7 of the California Health and Safety Code. 

        IN
WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first above written. 

	"Landlord":	 	"Tenant":
	

EXECUTIVE ONE ASOCIATES,

An Illiniois limited partnership	
 	

CARDIONET, INC.

a California corporation
	

 	
 	

 	
 	

By:	
 	

/s/ [Illegible]

	By:	 	/s/ Jerry J. Ong
	 	 	 	Its:	 	CHAIRMAN & CEO

	 	 	Jerry J. Ong, Vice President	 	By:	 	/s/ [Illegible]

	 	 	Agent for the Partnership	 	 	 	Its:	 	EXECUTIVE VP & SECRETARY

35

   EXHIBIT A  

 EXECUTIVE COMPLEX  

 OUTLINE OF PREMISES  

[MAP] 

1

 
[MAP] 

2

   EXHIBIT B  

 LIST OF OFFICE FURNITURE  

	OFFICE EQUIPMENT
 
	 	QUANTITY
	 	LOCATION

	Full Cubes	 	121	 	7th floor
	Desk Chairs (For Full Cubes)	 	105	 	7th floor
	Grey Desk Chairs (For 5 Small Conference Rooms)	 	22	 	7th floor
	Green Stools	 	7	 	7th floor
	Small Conference Room Tables	 	5	 	7th floor
	Large Conference Room Table	 	1	 	7th floor
	Two-Drawer Filing Cabinets	 	70	 	7th floor
	Two-Drawer Filing Cabinets—Lateral	 	2	 	7th floor
	Two-Door/Two-Drawer Cabinets	 	12	 	7th floor
	Four-Drawer Filing Cabinets	 	3	 	7th floor
	Five-Drawer Filing Cabinets	 	2	 	7th floor
	Leather Chairs (For Conference Rooms)	 	6	 	7th floor
	Round Tables For Leather Chairs (Small)	 	2	 	7th floor
	Fabric Side Chairs (Charcoal Color)	 	4	 	7th floor
	Fabric Couches (Charcoal Color)	 	2	 	7th floor
	3x5 Folding Tables	 	5	 	7th floor
	2x6 Folding Tables	 	1	 	7th floor
	Patio Furniture Sets	 	2	 	7th floor
	Refrigerators	 	3 (2 normal, 1 Pepsi refrigerator)	 	7th floor

1

EXHIBIT C  

EXECUTIVE COMPLEX

NOTICE OF LEASE TERM DATES  

	To:	 	 	 	 
	 	
	 	 
	 	
	 	 
	 	
	 	 
	 	
	 	 
	

 	

Re:	

Office Lease dated                        , 200    , between EXECUTIVE ONE ASSOCIATES, an Illinois limited
partnership ("Landlord"), and                        ,
a                        ("Tenant") concerning
Suite            on floor(s)                        of the office
building located at 1010 Second Avenue, San Diego, California.

Gentlemen:

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

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

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

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

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

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

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

	 	 	EXECUTIVE ONE ASSOCIATES,

an Illinois limited partnership
	

 	
 	

By:	

 
	 	 	 	

	 	 	Jerry J. Ong, Vice President

Agent for the Partnership

Agreed to and accepted

as of            , 200            . 

	
	 
	a	 	 	 
	 	
	 
	

By:	

 	

 	

 
	 	
	 
	 	Its:	 	 
	 	 	
	 

EXHIBIT D  

EXECUTIVE COMPLEX

RULES AND REGULATIONS  

        Tenant shall faithfully observe and comply with the following Rules and Regulations. Landlord shall not be responsible to Tenant for the nonperformance of any of
said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Project. In the event of any conflict between the Rules and Regulations and
the other provisions of this Lease, the latter shall control. 

        1.     Tenant
shall not alter any lock or install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord's prior written
consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys will be furnished by Landlord for the Premises, and any additional keys required by Tenant must be
obtained from Landlord at a reasonable cost to be established by Landlord. Upon the termination of this Lease, Tenant shall restore to Landlord all keys of stores, offices, and toilet rooms, either
furnished to, or otherwise procured by, Tenant and in the event of the loss of keys so furnished, Tenant shall pay to Landlord the cost of replacing same or of changing the lock or locks opened by
such lost key if Landlord shall deem it necessary to make such changes. 

        2.     All
doors opening to public corridors shall be kept closed at all times except for normal ingress and egress to the Premises. 

        3.     Landlord
reserves the right to close and keep locked all entrance and exit doors of the Building during such hours as are customary for comparable buildings in the San
Diego, California area. Tenant, its employees and agents must be sure that the doors to the Building are securely closed and locked when leaving the Premises if it is after the normal hours of
business for the Building. Any tenant, its employees, agents or any other persons entering or leaving the Building at any time when it is so locked, or any time when it is considered to be after
normal business hours for the Building, may be required to sign the Building register. Access to the Building may be refused unless the person seeking access has proper identification or has a
previously arranged pass for access to the Building. Landlord will furnish passes to persons for whom Tenant requests same in writing. Tenant shall be responsible for all persons for whom Tenant
requests passes and shall be liable to Landlord for all acts of such persons. The Landlord and his agents shall in no case be liable for damages for any error with regard to the admission to or
exclusion from the Building of any person. In case of invasion, mob, riot, public excitement, or other commotion, Landlord reserves the right to prevent access to the Building or the Project during
the continuance thereof by any means it deems appropriate for the safety and protection of life and property. 

        4.     No
furniture, freight or equipment of any kind shall be brought into the Building without prior notice to Landlord. All moving activity into or out of the Building shall
be scheduled with Landlord and done only at such time and in such manner as Landlord designates. Landlord shall have the right to prescribe the weight, size and position of all safes and other heavy
property brought into the Building and also the times and manner of moving the same in and out of the Building. Safes and other heavy objects shall, if considered necessary by Landlord, stand on
supports of such thickness as is necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such safe or property in any case. Any damage to any part of
the Building, its contents, occupants or visitors by moving or maintaining any such safe or other property shall be the sole responsibility and expense of Tenant. 

        5.     No
furniture, packages, supplies, equipment or merchandise will be received in the Building or carried up or down in the elevators, except between such hours, in such
specific elevator and by such personnel as shall be designated by Landlord. 

        6.     The
requirements of Tenant will be attended to only upon application at the management office for the Project or at such office location designated by Landlord. Employees
of Landlord shall 

 

not
perform any work or do anything outside their regular duties unless under special instructions from Landlord. 

        7.     No
sign, advertisement, notice or handbill shall be exhibited, distributed, painted or affixed by Tenant on any part of the Premises or the Building without the prior
written consent of the Landlord. Tenant shall not disturb, solicit, peddle, or canvass any occupant of the Project and shall cooperate with Landlord and its agents of Landlord to prevent same. 

        8.     The
toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed, and no foreign substance of
any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the tenant who, or whose servants, employees,
agents, visitors or licensees shall have caused same. 

        9.     Tenant
shall not overload the floor of the Premises, nor mark, drive nails or screws, or drill into the partitions, woodwork or drywall or in any way deface the Premises
or any part thereof without Landlord's prior written consent. Tenant shall not purchase spring water, ice, towel, linen, maintenance or other like services from any person or persons not approved by
Landlord. 

        10.   Except
for vending machines intended for the sole use of Tenant's employees and invitees, no vending machine or machines other than fractional horsepower office machines
shall be installed, maintained or operated upon the Premises without the written consent of Landlord. 

        11.   Subject
to Section 5.3 of this Lease, Tenant shall not use or keep in or on the Premises, the Building, or the Project any kerosene, gasoline, explosive material,
corrosive material, material capable of emitting toxic fumes, or other inflammable or combustible fluid chemical, substitute or material. Tenant shall provide material safety data sheets for any
hazardous material used or kept on the Premises. 

        12.   Tenant
shall not without the prior written consent of Landlord use any method of heating or air conditioning other than that supplied by Landlord. 

        13.   Tenant
shall not use, keep or permit to be used or kept, any foul or noxious gas or substance in or on the Premises, or permit or allow the Premises to be occupied or
used in a manner offensive or objectionable to Landlord or other occupants of the Project by reason of noise, odors, or vibrations, or interfere with other tenants or those having business therein,
whether by the use of any musical instrument, radio, phonograph, or in any other way. Tenant shall not throw anything out of doors, windows or skylights or down passageways. 

        14.   Tenant
shall not bring into or keep within the Project, the Building or the Premises any animals, birds, aquariums, or, except in areas designated by Landlord, bicycles
or other vehicles. 

        15.   No
cooking shall be done or permitted on the Premises, nor shall the Premises be used for the storage of merchandise, for lodging or for any improper, objectionable or
immoral purposes. Notwithstanding the foregoing, Underwriters' laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and
similar beverages for employees and visitors, provided that such use is in accordance with all applicable federal, state, county and city laws, codes, ordinances, rules and regulations. 

        16.   The
Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may be incidental to the use of the Premises provided for in
the Summary. Tenant shall not occupy or permit any portion of the Premises to be occupied as an office for a messenger-type operation or dispatch office, public stenographer or typist, or
for the manufacture or sale of liquor, narcotics, or tobacco in any form, or as a medical office, or as a barber or manicure shop, or as an employment bureau without the express prior written consent
of Landlord. Tenant shall not engage or 

2

 

pay
any employees on the Premises except those actually working for such tenant on the Premises nor advertise for laborers giving an address at the Premises. 

        17.   Landlord
reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs,
or who shall in any manner do any act in violation of any of these Rules and Regulations. 

        18.   Tenant,
its employees and agents shall not loiter in or on the entrances, corridors, sidewalks, lobbies, courts, halls, stairways, elevators, vestibules or any Common
Areas for the purpose of smoking tobacco products or for any other purpose, nor in any way obstruct such areas, and shall use them only as a means of ingress and egress for the Premises. 

        19.   Tenant
shall not waste electricity, water or air conditioning and agrees to cooperate fully with Landlord to ensure the most effective operation of the Building's
heating and air conditioning system, and shall refrain from attempting to adjust any controls. Tenant shall participate in recycling programs undertaken by Landlord. 

        20.   Tenant
shall store all its trash and garbage within the interior of the Premises. No material shall be placed in the trash boxes or receptacles if such material is of
such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash and garbage in San Diego, California without violation of any law or ordinance
governing such disposal. All trash, garbage and refuse disposal shall be made only through entry-ways and elevators provided for such purposes at such times as Landlord shall designate. If
the Premises is or becomes infested with vermin as a result of the use or any misuse or neglect of the Premises by Tenant, its agents, servants, employees, contractors, visitors or licensees, Tenant
shall forthwith, at Tenant's expense, cause the Premises to be exterminated from time to time to the satisfaction of Landlord and shall employ such licensed exterminators as shall be approved in
writing in advance by Landlord. 

        21.   Tenant
shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency. 

        22.   Any
persons employed by Tenant to do janitorial work shall be subject to the prior written approval of Landlord, and while in the Building and outside of the Premises,
shall be subject to and under the control and direction of the Building manager (but not as an agent or servant of such manager or of Landlord), and Tenant shall be responsible for all acts of such
persons. 

        23.   No
awnings or other projection shall be attached to the outside walls of the Building without the prior written consent of Landlord, and no curtains, blinds, shades or
screens shall be attached to or hung in, or used in connection with, any window or door of the Premises other than Landlord standard drapes. All electrical ceiling fixtures hung in the Premises or
spaces along the perimeter of the Building must be fluorescent and/or of a quality, type, design and a warm white bulb color approved in advance in writing by Landlord. Neither the interior nor
exterior of any windows shall be coated or otherwise sunscreened without the prior written consent of Landlord. Tenant shall be responsible for any damage to the window film on the exterior windows of
the Premises and shall promptly repair any such damage at Tenant's sole cost and expense. Tenant shall keep its window coverings closed during any period of the day when the sun is shining directly on
the windows of the Premises. Prior to leaving the Premises for the day, Tenant shall draw or lower window coverings and extinguish all lights. Tenant shall abide by Landlord's regulations concerning
the opening and closing of window coverings which are attached to the windows in the Premises, if any, which have a view of any interior portion of the Building or Common Areas. 

        24.   The
sashes, sash doors, skylights, windows, and doors that reflect or admit light and air into the halls, passageways or other public places in the Building shall not be
covered or obstructed by Tenant, nor shall any bottles, parcels or other articles be placed on the windowsills. 

3

 

        25.   Tenant
must comply with requests by the Landlord concerning the informing of their employees of items of importance to the Landlord. 

        26.   Tenant
hereby acknowledges that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, the Building or
the Project. Tenant hereby assumes all responsibility for the protection of Tenant and its agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties,
including keeping doors locked and other means of entry to the Premises closed, whether or not Landlord, at its option, elects to provide security protection for the Project or any portion thereof.
Tenant further assumes the risk that any safety and security devices, services and programs which Landlord elects, in its sole discretion, to provide may not be effective, or may malfunction or be
circumvented by an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under this Lease, obtain its own insurance coverage to the extent Tenant desires
protection against losses related to such occurrences. Tenant shall cooperate in any reasonable safety or security program developed by Landlord or required by law. 

        27.   All
office equipment of any electrical or mechanical nature shall be placed by Tenant in the Premises in settings approved by Landlord, to absorb or prevent any
vibration, noise and annoyance. 

        28.   Tenant
shall not use in any space or in the public halls of the Building, any hand trucks except those equipped with rubber tires and rubber side guards. 

        29.   No
auction, liquidation, fire sale, going-out-of-business or bankruptcy sale shall be conducted in the Premises without the prior
written consent of Landlord. 

        30.   No
tenant shall use or permit the use of any portion of the Premises for living quarters, sleeping apartments or lodging rooms. 

        31.   Tenant
shall not purchase spring water, towels, janitorial or maintenance or other similar services from any company or persons not approved by Landlord. Landlord shall
approve a sufficient number of sources of such services to provide Tenant with a reasonable selection, but only in such instances and to such extent as Landlord in its judgment shall consider
consistent with the security and proper operation of the Building. 

        32.   Tenant
shall install and maintain, at Tenant's sole cost and expense, an adequate, visibly marked and properly operational fire extinguisher next to any duplicating or
photocopying machines or similar heat producing equipment, which may or may not contain combustible material, in the Premises. 

        Landlord
reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in
Landlord's judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises, Building, the Common Areas and the Project, and for the preservation of good
order therein, as well as for the convenience of other occupants and tenants therein. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenants, but
no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord from thereafter enforcing any such Rules or Regulations
against any or all tenants of the Project. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition of its occupancy of the Premises. 

4

EXHIBIT E  

 EXECUTIVE COMPLEX

FORM OF TENANT'S ESTOPPEL CERTIFICATE  

        The undersigned as Tenant under that certain Office Lease (the "Lease") made and entered into as of
                        , 200            by and between EXECUTIVE ONE
ASSOCIATES, an Illinois limited partnership, as Landlord, and the undersigned as Tenant, for Premises on
the                        floor(s)
of the office building located at 1010 Second Avenue, San Diego, California                        , certifies as follows:

        1.     Attached
hereto as Exhibit A is a true and correct copy of the Lease and all amendments and modifications thereto.
The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises. 

        2.     The
undersigned currently occupies the Premises described in the Lease, the Lease Term commenced on                        , and the
Lease Term expires on                        , and
the undersigned has no option to terminate or cancel the Lease or to purchase all or any part of the Premises, the Building and/or the Project. 

        3.     Base
Rent became payable on                        . 

        4.     The
Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in  Exhibit A. 

        5.     Tenant
has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as follows: 

        6.     Tenant
shall not modify the documents contained in Exhibit A without the prior written consent of Landlord's
mortgagee. 

        7.     All
monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due
through                        . The
current monthly installment of Base Rent is $                        . 

        8.     All
conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In
addition, the undersigned has not delivered any notice to Landlord regarding a default by Landlord thereunder. 

        9.     No
rental has been paid more than thirty (30) days in advance and no security has been deposited with Landlord except as provided in the Lease. 

        10.   As
of the date hereof, there are no existing defenses or offsets, or, to the undersigned's knowledge, claims or any basis for a claim, that the undersigned has against
Landlord. 

        11.   If
Tenant is a corporation or partnership, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly
formed and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf
of Tenant is authorized to do so. 

        12.   There
are no actions pending against the undersigned under the bankruptcy or similar laws of the United States or any state. 

        13.   Other
than in compliance with all applicable laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or stored any hazardous
substances in the Premises. 

        14.   To
the undersigned's knowledge, all tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been
accepted by the undersigned and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full. 

 

        The
undersigned acknowledges that this Estoppel Certificate may be delivered to Landlord or to a prospective mortgagee or prospective purchaser, and acknowledges that said prospective
mortgagee or prospective purchaser will be relying upon the statements contained herein in making the loan or
acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of making such loan or acquiring such property. 

Executed
at                        on the    day
of                        , 200            .
 

	 	 	"Tenant":
	

 	
 	

	 	 	a	 	 
	 	 	 	

	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Its:	 
	 	 	 	 	

	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Its:	 
	 	 	 	 	

2

   EXHIBIT F  

 EXECUTIVE COMPLEX

ASBESTOS DISCLOSURE STATEMENT  

Executive
Complex

Asbestos Disclosure

1-22-04 

        Executive
Complex has undertaken extensive testing for asbestos containing materials. Over the years much of the material has been removed. The building has an O & M program in
place and we continue to remove asbestos containing material when appropriate. Outlined below are areas that contain asbestos as of this date. This list is not meant to be all-inclusive
but does accurately reflect our understanding of the situation as of this date. 

	Location
 
	 	Comments
 

	Exterior Columns	 	The exterior columns on the outside of the building are believed to contain asbestos fireproofing. This can not be accessed without removing the skin of the building. ACM fireproofing on the columns and the interior
sections has been removed.
	

Lobby	
 	

Asbestos containing fireproofing above hard lid ceiling. Area not accessible without demolishing the ceiling. ACM fireproofing has been removed from accessible tenant areas.
	

2nd Floor East & West	
 	

Asbestos containing fireproofing material on the deck above the ceiling except for the electrical room. ACM has been removed from electrical rooms throughout the building.
	

7th Floor East Fan Room	
 	

Asbestos containing fireproofing on the deck in the fan room. This area is not accessible to the public.
	

7th Floor East Elevator Room	
 	

Asbestos containing fireproofing on the deck in the elevator equipment room. This area is not accessible to the public.
	

10th Floor	
 	

Asbestos containing fireproofing material on the deck above the ceiling except for the electrical room. ACM has been removed from electrical rooms throughout the building.
	

22nd Floor	
 	

Asbestos containing fireproofing material on the deck above the ceiling except for the electrical room. ACM has been removed from electrical rooms throughout the building

1

FIRST AMENDMENT TO LEASE  

        THIS FIRST AMENDMENT TO LEASE ("Amendment") is made and entered into as of the 7th day of April, 2006 by and
between Executive Complex, LP, a California Limited Partnership ("Landlord"), and CardioNet, Inc., a California Corporation
("Tenant"). 

R E C I T A L S: 

        A.    Executive
One Associates, an Illinois limited partnership ("Original Landlord"), and Tenant entered into that certain
Office Lease dated as of February 6, 2004 (the "Original Lease") whereby Tenant leased certain office space in the building located at 1010
Second Avenue, San Diego, California. The Original Lease, is referred to herein as the "Lease."Landlord is the
successor-in-interest to Original Landlord. 

        B.    By
this Amendment, Landlord and Tenant desire to extend the Lease Term and to otherwise modify the Lease as provided herein. 

        C.    Unless
otherwise defined herein, capitalized terms as used herein shall have the same meanings as given thereto in the Lease. 

        NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows: 

A G R E E M E N T: 

        1.    The Premises.    Landlord currently leases to Tenant the Premises, which the parties agree contain 19,929
rentable square feet located within Suite 700 on the seventh (7th) floor of the Building. 

        2.    Extended Lease Term.    The Lease Term shall be extended such that the Lease shall terminate on
August 31, 2011 ("New Termination Date"). The period from September 1, 2006 through the New Termination Date is referred to herein as the  "Extended Term."

        3.    Monthly Base Rent.    During the Extended Term, Tenant shall pay monthly Base Rent for the Premises as follows: 

	Period
 
	 	Monthly Installment of Base

Rent*
	 	Monthly Installment of Base

Rent

Per Rentable Square Foot*

	9/1/06 - 8/31/07	 	$	36,868.65	 	$	1.85
	9/1/07 - 8/31/08	 	$	38,064.39	 	$	1.91
	9/1/08 - 8/31/09	 	$	39,060.84	 	$	1.96
	9/1/09 - 8/31/10	 	$	40,256.58	 	$	2.02
	9/1/10 - 8/31/11	 	$	41,452.32	 	$	2.08

        4.    Base Year.    During the Extended Term, the Base Year shall be the calendar year 2007. 

        5.    Improvements to the Premises.    Tenant acknowledges that Landlord shall not be obligated to provide or pay for
any improvement work or services related to the improvement of the Premises. Tenant also acknowledges that Landlord has made no representation or warranty regarding the condition of the Premises. 

        6.    Security Deposit.    Tenant has previously deposited with Landlord Thirty-One Thousand, Eight
Hundred, and Eighty-Six and 40/100 Dollars ($31,886.40) as a Security Deposit under the Lease. Concurrently with Tenant's execution of this Amendment, Tenant shall deposit with Landlord an
additional Nine Thousand, Five Hundred, Sixty-Five and 92/100 Dollars ($9,565.92) for a total Security Deposit under the Lease of Forty-One Thousand, Four Hundred, and
Fifty-Two and 32/100 Dollars ($41,452.32). Landlord shall continue to hold the Security Deposit in accordance with the terms and conditions of Article 21 of the Original Lease.
Landlord is currently in possession of an additional $31,886.40, which shall be applied to the last month of rent for the initial term. 

 

        7.    Renewal Option.    Tenant shall, provided the Lease is in full force and effect and Tenant is not in default
under any of the other terms and conditions of the Lease at the time of notification or commencement, have one (1) option to renew this Lease for a term of sixty (60) months for the
Premises as of the date the renewal term is to commence, on the same terms and conditions set forth in the Lease, except as modified by the terms, covenants and conditions as set forth below: 

        a.     If
Tenant elects to exercise said option, then Tenant shall provide Landlord with written notice no later than the date which is eight (8) months (290 days)
prior to the expiration of the then current term of this Lease. If Tenant fails to provide such notice, Tenant shall have no further or additional right to extend or renew the term of the Lease. 

        b.     The
Base Rent and Additional Rent in effect at the expiration of the then current term of the Lease shall be adjusted to reflect the current fair market lease terms and
conditions for comparable spaces for non-renewing tenants in the Building and in other similar quality Downtown San Diego buildings in the same rental market as of the date the renewal
term is to commence, taking into account the specific provisions of the Lease which will remain constant. Landlord shall advise Tenant of the new and other terms for the Premises no later than
15 days after the receipt of Tenant's written request therefore. Said request shall be made no earlier than thirty (30) days prior to the first date on which Tenant may exercise its
option under this Paragraph. Said notification of the new Base Rent may include a provision for its escalation to provide for a change in the fair market rental between the time of notification and
the commencement of the renewal term. In no event shall the Rent for any period be less than the Rent in the proceeding period. Tenant and Landlord shall mutually agree on terms on or before four
(4) months prior to the initial lease term expiration. 

        c.     This
option is not transferable; the parties hereto acknowledge and agree that they intend that the aforesaid option to renew this Lease shall be "personal" to Tenant as
set forth above and that in no event will any assignee or sublessee have any rights to exercise the aforesaid option to renew. 

        8.    Brokers.    Each party represents and warrants to the other that no broker, agent or finder, other than Irving
Hughes and Grubb & Ellis/BRE Commercial (collectively, "Brokers"), negotiated or was instrumental in negotiating or consummating this Amendment.
Each party further agrees to defend, indemnify and hold harmless the other party from and against any claim for commission or finder's fee by any person or entity, other than Brokers, who claims or
alleges that they were retained or engaged by the indemnifying party or at the request of such party in connection with this Amendment. Landlord shall be solely responsible for the payment of
commissions to Brokers. 

        9.    Defaults.    Tenant hereby represents and warrants to Landlord that, as of the date of this Amendment, Tenant is
in full compliance with all terms, covenants and conditions of the Lease and that there are no breaches or defaults under the Lease by Landlord or Tenant, and that Tenant knows of no events or
circumstances which, given the passage of time, would constitute a default under the Lease by either Landlord or Tenant. 

        10.    No Further Modification.    Except as set forth in this Amendment, all of the terms and provisions of the Lease
shall apply during the Extended Term and shall remain unmodified and in full force and effect. Effective as of the date hereof, all references to the "Lease" shall refer to the Lease as amended by
this Amendment. 

        11.    Counterparts and Fax Signatures.    This Amendment may be executed in counterparts, each of which shall be
deemed an original, but such counterparts, when taken together, shall constitute one agreement. This Amendment may be executed by a party's signature transmitted by facsimile
("fax"), and copies of this Amendment executed and delivered by means of faxed signatures shall have the same force and effect as copies hereof executed
and delivered with original signatures. All parties 

2

 

hereto
may rely upon faxed signatures as if such signatures were originals. Any party executing and delivering this Amendment by fax shall promptly thereafter deliver a counterpart signature page of
this Amendment containing said party's original signature. All parties hereto agree that a faxed signature page may be introduced into evidence in any proceeding arising out of or related to this
Amendment as if it were an original signature page. 

        12.    Deleted Sections.    2.2.1, 2.2.2, and 2.2.3 of the Lease shall be deleted. 

        IN
WITNESS WHEREOF, this Amendment has been executed as of the day, and year first above written. 

	 	 	"Landlord:"
	

 	
 	

Executive Complex, LP

a California Limited Partnership
	

 	
 	

By:	

Jamison Properties

Its: Managing Member
	

 	
 	

 	

By:	

/s/ [Illegible]

	 	 	 	 	Print Name:	 
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 
	 	 	 	 	 	

	

 	
 	

"Tenant":
	 	 	/s/ Doreen M. Roberts
 CardioNet, Inc., a California Corporation

Doreen M. Roberts

Secretary of the Corporation

3

QuickLinks

Exhibit 10.13

OFFICE LEASE EXECUTIVE COMPLEXQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.14    
    

OFFICE SPACE LEASE  

 for  

 SUITE #300, MILLENNIUM III  

 MILLENNIUM CORPORATE CENTER  

 by and between  

 WASHINGTON STREET ASSOCIATES II, L.P.  

 (as Landlord)  

 and  

 CARDIONET, INC.  

 (as Tenant)  

 Date: May 30, 2003  

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	  1.	 	Definitions	 	2
	  2.	 	Premises	 	2
	  3.	 	Completion of Premises	 	2
	  4.	 	Commencement Date	 	2
	  5.	 	Use of Premises	 	3
	  6.	 	Fixed Basic Rent	 	3
	  7.	 	Real Estate Taxes and Operating Expenses	 	3
	  8.	 	Intentionally Omitted	 	10
	  9.	 	Late Charge	 	10
	10.	 	Insurance	 	11
	11.	 	Repairs and Maintenance	 	13
	12.	 	Utilities and Services	 	13
	13.	 	Governmental Regulations	 	15
	14.	 	Signs	 	15
	15.	 	Alterations, Additions and Fixtures	 	15
	16.	 	Mechanic's Liens	 	17
	17.	 	Landlord's Right of Entry	 	17
	18.	 	Damage by Fire or Other Casualty	 	17
	19.	 	Non-Abatement of Rent	 	18
	20.	 	Indemnification	 	18
	21.	 	Condemnation	 	19
	22.	 	Quiet Enjoyment	 	20
	23.	 	Rules and Regulations	 	20
	24.	 	Assignment and Sublease	 	20
	25.	 	Subordination	 	23
	26.	 	Curing Tenant's Defaults	 	23
	27.	 	Surrender	 	23
	28.	 	Defaults-Remedies	 	24
	29.	 	Condition of Premises	 	27
	30.	 	Hazardous Substances	 	27
	31.	 	Recording	 	28
	32.	 	Brokers' Commission	 	28
	33.	 	Notices	 	28
	34.	 	No Option	 	29
	35.	 	Inability to Perform	 	29
	36.	 	Survival	 	29
	37.	 	Corporate Tenants	 	30
	38.	 	Tenant Representations and Warranties	 	30
	39.	 	Waiver of Invalidity of Lease	 	30
	40.	 	Security Deposit	 	30
	41.	 	Estoppel Certificate	 	30
	42.	 	Rights Reserved by Landlord	 	30
	43.	 	Miscellaneous	 	31
	44.	 	Additional Definitions	 	33
	45.	 	Communication Equipment	 	33
	RIDER B	 	1
	Tenant's Right of First Offer	 	1

i

        THIS LEASE (the "Lease") is made the            day of May, 2003 between Washington Street Associates II, L.P. (herein referred to as
"Landlord") whose address is 700 South
Henderson Road, Suite 225, King of Prussia, PA 19406 and CardioNet, Inc., a California corporation with its principal office at 510 Market Street, San Diego, CA 92101, (herein referred to as
"Tenant"). 

 
 

PREAMBLE
  BASIC LEASE PROVISIONS AND DEFINITIONS    
    

        In addition to other terms elsewhere defined in this Lease, the following terms whenever used in this Lease shall have only the meanings set forth in this
Section, unless such meanings are expressly modified, limited or expanded elsewhere in this Lease. 

        A. ADDITIONAL RENT shall mean all sums in addition to Fixed Basic Rent payable by Tenant to Landlord or to third
parties pursuant to the provisions of the Lease. 

        B. BROKER(S) shall mean Binswanger Company. 

        C. BUILDING shall mean the building known as Millennium III of the Millennium Corporate Center (the "Project")
located on the Property containing 70,811 rentable square feet of space as set forth on Exhibit C. The Building is also identified as Unit B pursuant to that certain Declaration of Condominium
of Millennium, A Condominium dated October 18, 2000 and recorded October 20, 2000 in the Montgomery County Recorder of Deeds at Deed Book 335 page 2384 et
seq. (the "Declaration"). 

        D. BUILDING HOLIDAYS shall be those holidays listed on Exhibit E. 

        E. EXHIBITS shall be the following, attached to this Lease and incorporated in this Lease and made a part of this
Lease: 

	Exhibit A	 	Premises
	Exhibit B	 	Legal Description of Property
	Exhibit C	 	Building Measurement
	Exhibit D	 	Work Letter
	Exhibit E	 	Building Holidays
	Exhibit F	 	Janitorial Specifications
	Exhibit G	 	Rules and Regulations
	Exhibit H	 	Confirmation of Lease Term

        F. FIXED BASIC RENT shall be calculated and payable as follows: 

	Months of Term
	 	Rentable Sq. Ft.
	 	Rate Per Rentable

Sq. Foot
	 	Yearly Rate
	 	Monthly Installment

	1-18	 	16,875	 	$	5.50	 	$	92,812.50	 	$	7,734.38
	19-24	 	16,875	 	$	28.50	 	$	480,937.50	 	$	40,078.13
	25-36	 	16,875	 	$	29.07	 	$	490,556.25	 	$	40,879.69
	37-48	 	16,875	 	$	29.65	 	$	500,343.75	 	$	41,695.31
	49-60	 	16,875	 	$	30.24	 	$	510,300.00	 	$	42,525.00
	61-72	 	16,875	 	$	30.84	 	$	520,425.00	 	$	43,368.75
	73-84	 	16,875	 	$	31.46	 	$	530,887.50	 	$	44,240.63

        G. OPERATING EXPENSES STOP shall be the sum of Five and 50/100 Dollars ($5.50) per rentable square foot of the
Premises. 

        H. PERMITTED USE shall be general office use and the following uses: patient monitoring, receipt and distribution
of finished goods, inventory and related supplies, refurbishment of medical devices, patient training and/or clinical trial and such other lawful uses not expressly prohibited hereunder, subject to
all applicable laws and all rules and regulations of the Building and insurers of the Building. 

 

        I. PREMISES shall be approximately sixteen thousand eight hundred and seventy five (16,875) rentable square feet
on the third (3rd) level of the Building as set forth on Exhibit A such measurement to be subject to final confirmation and adjustment by Landlord's architect after receipt and approval of
final plans for the Premises. 

        J. PROPERTY shall mean the buildings (including the Building) in the Project and the lot, tract or parcel of land
on which the buildings are situated and all improvements thereto as more particularly described on Exhibit B attached hereto which is subject to the Declaration. 

        K. SECURITY DEPOSIT shall be the sum of $142,500.00 which shall be held in accordance with Section 41 of
the Lease. 

        L. TARGET DATE shall be seventy (70) days following the date a building permit is issued to construct the
Premises Work. 

        M. TENANT'S OPERATING EXPENSES SHARE shall be 23.831% percent. 

        N. TERM shall mean the period of time commencing on the Commencement Date (as defined in Section 4 of the
Lease) and ending on the date which is seven (7) years following the Commencement Date, plus the number of days remaining in the calendar month in which such date occurs unless otherwise
terminated or extended pursuant to the terms of this Lease. 

        For
and in consideration of the covenants contained in this Lease, and upon the terms and conditions set forth in this Lease, Landlord and Tenant, intending to be legally bound, agree as
follows: 

        1.     Definitions. The definitions set forth in the preceding Preamble shall apply to the same capitalized terms appearing in
this Lease. Additional definitions are contained in Section 45 and throughout this Lease. 

        2.     Premises. Landlord hereby demises and leases the Premises to Tenant and Tenant hereby leases and takes the Premises from
Landlord for the Term and upon the terms, covenants, conditions, and provisions set forth in this Lease, including the Preamble (this "Lease"). The Tenant's interest in the Premises as tenant shall
include the right, in common with Landlord and other occupants of the Building, to use driveways, sidewalks, loading and parking areas, lobbies, hallways and other facilities which are located within
the Property and which are designated by Landlord from time to time for the use of all of the tenants of the Building (the "Common Facilities") as well as all the Common Elements (as defined in the
Declaration). 

        3.     Completion of Premises. The Premises shall be completed in accordance with the Work Letter attached hereto as
Exhibit D. If the Premises are not Substantially Completed (as defined in the Work Letter) and delivered to the Tenant on or before the Target Date for any reason, whether or not within
Landlord's control, Landlord shall not be subject to any liability to Tenant and no such failure to deliver the Premises by the Target Date or any other date shall in any respect affect the validity
or continuance of this Lease of any obligation of Tenant hereunder or extend the Term. Notwithstanding the foregoing, (i) in the event the Premises are not Substantially Completed within forty
five (45) days following the Target Date for any reason other than Tenant Delay, then Tenant may terminate this Lease by notice of termination delivered to Landlord at any time after such
45th day and before the date the Premises are Substantially Completed. 

        4.     Commencement Date. The Term shall commence on the date (the "Commencement Date") which is the first to occur of
(a) the date the Premises are Substantially Completed or (b) the date on which the Premises are actually occupied by Tenant for the conduct of its normal business and not in connection
with the installation and move-in of equipment, furniture or fixtures, with the Landlord's permission. The parties shall execute the Confirmation of Lease Term attached hereto as
Exhibit H. 

2

 

        b)    Tenant
shall have one option to terminate the Term (the "Termination Option") with respect to the Premises leased pursuant to this Lease. Tenant's Termination Option
shall permit the Tenant to terminate the Term with respect to the Premises effective on the last day of the thirty sixth (36th) month of the Term and every anniversary thereof as if such
date were the last day of the Term by (i) providing Landlord at least ten (10) months prior written notice of its election and (ii) paying Landlord a sum equal to (A) one
hundred and fifty percent of the product of Twenty Three Dollars ($23.00) multiplied by the number of rentable square feet of space contained within the Premises plus (B) all unamortized
brokerage commissions, tenant improvement costs, and legal fees, such sum to be set forth and agreed to on the Confirmation of Lease Term. The payment required to be made by Tenant pursuant to this
Subsection 4(b) shall be made at the time of Tenant's exercise of the Termination Option. In order to exercise the Termination Option, Tenant shall not be in default of its obligations under this
Lease beyond any applicable notice and cure at the time of the exercise of the Termination Option or upon the effective date thereof. 

        5.     Use of Premises. Tenant shall use the Premises for, and only for, the Permitted Use specified in the Preamble. Tenant
shall not make, or permit to be made, any unseemly or disturbing noises or odors and shall not interfere with other tenants or those having business with them. Tenant shall have access to the Premises
twenty four hours per day, seven days per week, throughout the Term. Tenant shall keep all mechanical apparatus in the Premises free of vibration and noise which may be transmitted beyond the limits
of the Premises. Tenant shall not overload any floor or part thereof in the Premises or the Building, including any public corridors or elevators therein, bringing in, placing, storing, installing or
removing any large or heavy articles, and Landlord may prohibit, or may direct and control the location and size of, safes and all other heavy articles, and may require, at Tenant's sole cost and
expense, supplementary supports of such material and dimensions as Landlord may deem necessary to properly distribute the weight. 

        6.     Fixed Basic Rent. Commencing on the Commencement Date, Tenant shall pay, throughout the Term, the annual Fixed Basic Rent
in the amount specified in the Preamble, without notice or demand and without setoff or deduction, in equal monthly installments equal to one-twelfth of the annual Fixed Basic Rent
(specified as Monthly Installments in the Preamble), in advance, on the first day of each calendar month during the Term. If the Commencement Date falls on a day other than the first day of a calendar
month, the Fixed Basic Rent shall be due and payable for such month, apportioned on a per diem basis for the period between the Commencement Date and the first day of the next first full calendar
month in the Term and such apportioned sum shall be paid on the Commencement Date. 

        7.     Real Estate Taxes and Operating Expenses

        a)    Definitions. The following terms shall be defined as hereinafter provided: 

        (i)    "Real Estate Taxes" shall mean all taxes, liens, charges, imposts and assessments of every kind and nature, ordinary or
extraordinary, foreseen or unforeseen, general or special, levied, assessed or imposed by any governmental authority with respect to the Property, as well as all fees or assessments payable on account
of the Property being located in any special services district. Notwithstanding the foregoing: 

        (1)   if
at any time during the Term the present system of ad valorem taxation of real property shall be changed or supplemented so that in lieu of or in addition to the ad
valorem tax on real property there shall be assessed on Landlord or the Property any tax of any nature which is imposed in whole or in part, in substitution for, addition to, or in lieu of any tax
which would otherwise constitute a Real Estate Tax, such tax shall be included within the term "Real Estate Taxes," but only to the extent that the same would be payable if the Property were the only
property of Landlord. Such tax may include, but shall not be limited to, a capital levy or other tax on the gross rents or gross receipts with 

3

 

respect
to the Property, or a federal, state, county, municipal or other local income, franchise, profit, excise or similar tax, assessment, levy or charge measured by or based, in whole or in part,
upon any such gross rents or gross receipts; 

        (2)   Real
Estate Taxes shall also encompass all of Landlord's expenses, including but not limited to reasonable attorney's fees and expenses, incurred by Landlord in any
effort to minimize Real Estate Taxes whether by contesting proposed increases in assessments, applying for the benefit of any tax abatement program available for the Property, appealing the denial of
any such tax abatement, or contesting any challenge to the validity of any tax abatement program or its applicability to the Property or by any other means or procedures appropriate in the
circumstances; provided, however, that under no circumstances shall Landlord have any obligation to undertake any contest, appeal or
other procedure to minimize Real Estate Taxes or to obtain or maintain the benefits of any tax abatement program for the Property; and 

        (3)   except
as otherwise provided in Subsection 7(a)(i)(l) above, there shall be excluded from Real Estate Taxes all net income, excess profit, excise, franchise, estate,
succession and inheritance taxes, penalties due to Landlord's lateness or failure to pay taxes when due and transfer taxes imposed on Landlord. 

        (ii)   "Operating Year" shall mean each calendar year, or such other period of twelve (12) months as hereafter may be
adopted by Landlord as its fiscal year, occurring either in whole or in part during the Term. 

        (iii)  "Operating Expense Statement" shall mean a statement provided by Landlord, setting forth in reasonable detail:
(a) the Operating Expenses for the Operating Year (or portion thereof if less than a full Operating Year) immediately preceding the Operating Year in which the statement is issued, reasonably
detailed by major categories, (b) the Tenant's Expense Payment (defined in Subsection 7(b)) for such preceding Operating Year, prorated if only a part of the Operating Year falls within the
Term, (c) the amount of payments made by Tenant on account of the Tenant's Expense Payment during such preceding Operating Year, (d) the amount of payments of the Monthly Operating
Expense Estimate (defined in Subsection 7(b)(i)(l)) made to date by Tenant in the Operating Year in which the Expense Statement is issued, and (e) the Monthly Operating Expense Estimate for the
Operating Year in which the Operating Expense Statement is issued. 

        (iv)  "Operating Expenses" shall mean 

        (1)   the
expenses incurred by Landlord in connection with the operation, repair, maintenance, protection and management of the Property, including by way of example rather
than of limitation, the following: 

        (a)   Wages,
salaries, fees and other compensation and payments, payroll taxes, contributions to any social security, unemployment insurance, welfare, pension or similar fund
and payments for other fringe benefits made to or on behalf of any and all employees of Landlord performing services rendered in connection with the operation, repair, maintenance, protection and
management of the Property, including, without limitation: elevator operators; elevator starters; window cleaners; porters; janitors; maids; miscellaneous handymen; watchmen; persons engaged in
patrolling and protecting the Property; carpenters; engineers; firemen; mechanics; electricians; plumbers; landscapers; insurance risk managers; building superintendent and assistants; property
manager; and clerical and administrative personnel. Landlord may contract for any of the foregoing to be performed by independent contractors, in 

4

 

which
event all sums paid to such independent contractors shall be included within Operating Expenses pursuant to Subsection 7(a)(iv)(l)(t) below. 

        (b)   The
cost of employee uniforms, and the cleaning, pressing and repair thereof. 

        (c)   Cleaning
costs for the Property, including the facade, windows and sidewalks, all costs for snow and rubbish removal and the costs of all labor, supplies, equipment and
materials incidental to such cleaning. 

        (d)   Premiums
and other charges incurred by Landlord with respect to all insurance relating to the Property and the operation and maintenance thereof, including without
limitation: all risk of physical damage or fire and extended coverage insurance; public liability insurance; elevator insurance; workmen's compensation insurance; boiler and machinery insurance;
sprinkler leakage insurance; rent insurance; and health, accident and group life insurance for employees. 

        (e)   The
cost of heat, electricity, gas, water, sewer and all other utility services, servicing the Building generally (and not for other leaseable space within the Building)
to the extent not billed directly to Tenant in accordance with Section 12(a) below. 

        (f)    Costs
incurred for operation, service, maintenance, inspection, repairs and alterations of the Property, including the heating, air-conditioning,
ventilating, plumbing, outdoor underground heating coils, electrical and elevator systems of the Building and the costs of labor, materials, supplies and equipment used in connection with all of the
aforesaid items. 

        (g)   Sales
and excise taxes and the like upon any of the expenses enumerated herein. 

        (h)   Management
fees of the managing agent for the Building, if any. 

        (i)    The
cost of tools, equipment, and supplies and any replacement thereof. 

        (j)    The
cost of repainting or otherwise redecorating any part of the Building other than premises demised (or capable of being demised) to tenants in the Building, and the
cost of displays or decorations for the lobby, balconies and other public portions of the Property. 

        (k)   Intentionally
Omitted. 

        (l)    Intentionally
Omitted. 

        (m)  The
cost of telephone, telecopier and courier services, postage and delivery charges, office supplies, maintenance and repair of office equipment, and similar costs. 

        (n)   The
cost of licenses, permits and similar fees and charges except in connection with the leasing of premises in the Building to tenants. 

        (o)   Auditing
and accounting fees including accounting fees incurred in connection with the preparation and certification of the Tax Statements and the Operating Expense
Statements. 

        (p)   All
costs incurred by Landlord to comply with governmental requirements, whether federal, state or municipal; and all repairs, replacements and improvements which are
appropriate for the continued operation of the Building as a first class 

5

 

building,
including capital expenditures which under generally applied real estate accounting practice are expensed or are regarded as deferred expenses. 

        (q)   All
costs and expenses associated with the acquisition and installation of any energy or cost saving devices to the extent of the amount of savings realized. 

        (r)   Intentionally
Omitted. 

        (s)   All
that portion of and privilege tax which is based upon gross "receipts" with respect to the Property and not upon "net income" with respect to the Property, any
income or gross receipts tax which is limited to income from real property, miscellaneous taxes (other than Real Estate Taxes) applicable to or assessed by reason of the ownership of the Property and
any taxes imposed on personal property in the Building owned by Landlord and used in connection with the Property. 

        (t)    Cost
of independent contractors performing services, including, but not limited to, cleaning, janitorial, window-washing, rubbish removal, security, landscaping, snow
and ice removal services, electrical, painting, plumbing, elevator, heating, ventilation and air conditioning maintenance and repair and all fees due such independent contractors. 

        (u)   Legal
fees with respect to the Property other than those incurred in the negotiation or enforcement of tenant leases. 

        (v)   Capital
expenditures necessitated by casualties to the extent the same are not covered by insurance. 

        (w)  Any
and all other expenditures of Landlord which are properly expensed in accordance with generally applied real estate accounting practices consistently applied with
respect to the operation, repair, maintenance, protection and management of first-class office buildings in the locality of the Building. 

        (x)   If
Landlord shall purchase any item of capital equipment or make any capital expenditure as described in Subsections 7(a)(iv)(1)(f), 7(a)(iv)(1)(h), 7(a)(iv)(1)(p), or
7(a)(iv)(1)(q), or 7(a)(iv)(1)(v) above (jointly the "Capital Expenditures") then the costs for same shall be amortized on a straight line basis
beginning in the year of installation and continuing for the useful life thereof with a per annum interest factor equal to the rate of Interest on the date of purchase of any item described in
Subsections 7(a)(iv)(1)(f), 7(a)(iv)(1)(h), 7(a)(iv)(1)(p), or 7(a)(iv)(1)(q), or 7(a)(iv)(1)(v) above. The amount of amortization for such costs shall be included in Operating Expenses for
each Operating Year to which the amortization relates. Tenant agrees that the determination by Landlord's accountants of the useful life of the subject of such Capital Expenditures shall be binding on
Tenant. If Landlord shall lease such items of capital equipment, then the lease shall be included in Operating Expenses for each Operating Year in which they are incurred. Notwithstanding the
foregoing, if Landlord shall effectuate savings in labor or energy related costs as a result of the installation of new devices or equipment, then Landlord may, in lieu of the above, elect to include
up to the full amount of any such savings in each Operating Year (beginning with the Operating Year in which the equipment is placed in service) as an Operating Expense until Landlord has recovered
thereby the cost of installation of said devices or equipment and interest thereon as above provided, even if the result of such application will result in the amortization of such costs over a period
shorter than the useful life of such installation. Landlord shall notify Tenant in writing if Landlord elects to apply such savings to the cost of such equipment and shall include a statement of the
amount of 

6

 

such
savings in the Operating Expense Statement for each applicable Operating Year. Operating Expenses shall thereafter be reduced by the amount of any previous capital expenditures included therein
expensed pursuant to this Subsection 7(a)(iv)(1)(x) when such amortization has been completed. 

        (y)   Any
expenses, costs or assessments assessed against or allocated to the Building pursuant to the terms of the Declaration or pursuant to the terms and conditions of that
certain Protective Covenants Agreement dated October 18, 2000 and recorded in Montgomery County Recorded of Deeds in Deed Book 335, page 2358 et
seq. in connection with the ownership, operation and maintenance of the Property. 

        (z)   Real
Estate Taxes. 

        (2)   Operating
Expenses shall be "net" and, for that purpose, shall be reduced by the amounts of any reimbursement or credit received by Landlord with respect to an item of
cost that is included within Operating Expenses (other than reimbursements to Landlord by tenants of the Building pursuant either to operating expense provisions of any lease or separate contractual
arrangements). 

        (3)   In
determining Operating Expenses for any Operating Year during which less than ninety five percent (95%) of the rentable area of the Building shall have been occupied
by tenants for more than thirty (30) days during such year, the actual Operating Expenses for such year shall be increased to the amount which normally would have been incurred for such
Operating Year had such occupancy of the Building been ninety five percent (95%) throughout such Operating Year, as reasonably determined by
Landlord. Notwithstanding the foregoing, in no event shall Landlord receive more than one hundred percent (100%) of the Building's actual Operating Expenses as a result of the operation of this
Subsection 8(a)(iii)(3). 

        (4)   With
respect to the second (2nd) full Operating Year during the Term and thereafter throughout the Term, Operating Expenses (exclusive of Real Estate
Taxes, the cost of insurance and the cost of snow and ice removal) shall not be greater than one hundred and five percent (105%) of the Operating Expenses (exclusive of Real Estate Taxes, the cost of
insurance and the cost of snow and ice removal) for the preceding Operating Year. 

        (5)   Notwithstanding
the provisions of Section 7(a)(iv)(1), "Operating Expenses" shall not include expenditures for any of the following: 

        (a)   Any
capital addition made to the Building, including the cost to prepare space for occupancy by a new tenant, except as set forth in Subsections 7(a)(iv)(1)(f),
7(a)(iv)(1)(h), 7(a)(iv)(1)(p), or 7(a)(iv)(1)(q), or 7(a)(iv)(1)(v) above. 

        (b)   Repairs
or other work occasioned by fire, windstorm or other insured casualty or hazard, to the extent that Landlord shall receive proceeds of such insurance. 

        (c)   Leasing
commissions and advertising expenses incurred in leasing or procuring new tenants. 

        (d)   Repairs
or rebuilding necessitated by condemnation to the extent that Landlord has received condemnation proceeds for such repairs or rebuilding. 

        (e)   Depreciation
and amortization of the Building, other than as permitted pursuant to Subsection 7(a)(iv)(1)(x). 

7

 

        (f)    The
salaries and benefits of executive officers of Landlord, if any. 

        (g)   Debt
service payments on any indebtedness applicable to the Property, including any mortgage debt. 

        (h)   The
cost of any capital expenditure with respect to the Building or Property, including the cost to prepare space for occupancy by a new tenant, except as permitted
above. 

        (i)    Repairs
or other work occasioned by fire, windstorm or other insured casualty or hazard, to the extent that Landlord shall receive proceeds of such insurance. 

        (j)    Leasing
commissions, advertising expenses and other costs incurred in leasing or procuring new tenants. 

        (k)   Repairs
or rebuilding necessitated by condemnation. 

        (l)    Depreciation
and amortization of the building, other than (i) capital expenditures required by law as described above; and (ii) capital expenditures
resulting in savings or reductions in Operating Expenses as described above. 

        (m)  The
salaries and benefits of employees above the level of property manager or executive officers of Landlord. 

        (n)   Interest
or principal on debt service. 

        (o)   Legal
expenses incurred in enforcing the terms of any lease. 

        (p)   Expenses
incurred for any necessary replacement of any item to the extent that it is covered under warranty. 

        (q)   The
cost of any item or service which Tenant separately reimburses Landlord or pays to third parties, or that Landlord provides selectively to one or more tenants of the
Building, other than Tenant, whether or not Landlord is reimbursed by such other tenant(s). This category shall include the actual cost of any special electrical, heating, ventilation or air
conditioning required by any tenant that exceeds normal building standards or is required during times other than normal business house, as hereinafter defined in Section 6. 

        (r)   Accounting
and legal fees relating to the construction, leasing, sale or any litigation relating to the Building or the Property. 

        (s)   Any
amount paid to an entity or individual related to Landlord which exceeds the amount which would be paid for similar goods or services on an arms-length
basis between unrelated parties. 

        (t)    The
initial cost of tools and small equipment used in the operation and maintenance of the Building and the Lot. 

        (u)   Except
as permitted above, any costs of complying with any governmental laws, rules, regulations or other requirements applicable to any part of the Property or the
building. 

        (v)   The
initial cost of any permanent landscaping. 

        (w)  Any
ground rent, air space rent or other rent incurred by the Property. 

8

  

        (x)   The
cost of any penalty or fine incurred for non-compliance with any applicable building or fire code or any other applicable law relating to the building or
the Property. 

        (y)   Any
costs incurred to test, survey, cleanup, contain, abate, remove or otherwise remedy Hazardous Materials, as defined herein, or asbestos containing materials from the
building or the Property, including any damages or future claims asserted against Landlord in connection with the same. 

        (z)   Any
personal property taxes of the Landlord for equipment or items not used directly ion the operation or maintenance of the Building or Property. 

        (aa) All
expenditures pertaining to the administration of the Building and the Property, including payroll and payroll-related expenses associated with administrative and
clerical personnel. 

        (bb) Any
costs or expenses for sculpture, paintings, or other works of art, including, costs incurred with respect to the purchase, ownership, leasing, repair, and/or
maintenance of such works of art. 

        (cc) Contributions
to Operating Expense reserves. 

        (dd) The
cost of overtime or other expense to Landlord in performing work expressly provided in this Lease to be borne at Landlord's expense, emergencies excluded. 

        (ee) All
expenses directly resulting from the negligence or willful misconduct of the Landlord, its agents, servants or other employees. 

        (ff)  All
bad debt loss, rent loss, or reserve for bad debt or rent loss. 

        (6)   "Monthly
Operating Expense Estimate" shall have the meaning specified in Subsection 7(b)(i)(1) hereof. 

        b)    Tenant's Expense Payment. Commencing on the Commencement Date, Tenant shall pay to Landlord as Additional Rent hereunder
an amount equal to Tenant's Operating Expense Share of the total dollar excess, if any, in Operating Expenses for such Operating Year over Operating Expenses Stop ("Tenant's
Expense Payment"). For any portion of an Operating Year less than a full twelve (12) month period occurring within the Term, Tenant's Expense Payment shall be prorated
on a per diem basis. 

        (i)    Such
Additional Rent shall be paid (or credited) in the following manner: 

        (1)   Beginning
on the Commencement Date and continuing thereafter during each Operating Year during the Term on the first day of each month until receipt of the next
Operating Expense Statement, Tenant will pay Landlord an amount set by Landlord sufficient to pay Landlord's estimate (reasonably based on the actual Operating Expenses for the preceding Operating
Year and Landlord's projections of any anticipated increases or decreases thereof) of Tenant's Expense Payment for the current Operating Year (or remaining portion thereof) (the
"Monthly Operating Expense Estimate"). The Monthly Operating Expense Estimate for a period less than a full calendar month shall be duly prorated. 

        (2)   Following
the end of each Operating Year, Landlord shall furnish Tenant an Operating Expense Statement setting forth the information described in Subsection
7(a)(iii) above. Within thirty (30) days following the receipt of such Operating Expense Statement (the "Expense Share Date") Tenant shall
pay to Landlord: (i) the amount by 

9

 

which
the Tenant's Expense Payment for the Operating Year (or portion thereof) covered by the Operating Expense Statement exceeds the aggregate of Monthly Operating Expense Estimates paid by Tenant
with respect to such Operating Year (or portion thereof); and (ii) the amount by which the Monthly Operating Expense Estimate for the current Operating Year as shown on the Operating Expense
Statement multiplied by the number of months elapsed to date in the current Operating Year (including the month in which payment is made) exceeds the aggregate amount of payments of the Monthly
Operating Expense Estimate theretofore made in the Operating Year in which the Operating Expense Statement is issued. Landlord shall diligently endeavor to furnish Tenant an Operating Expense
Statement not later than one hundred and fifty (150) days following the end of each Operating Year. 

        (3)   On
the first day of the first month following receipt by Tenant of any annual Operating Expense Statement and continuing thereafter on the first day of each succeeding
month until the issuance of the next ensuing Operating Expense Statement, Tenant shall pay Landlord the amount of the Monthly Operating Expense Estimate shown on the Operating Expense Statement. 

        (4)   If
on any Expense Share Date Tenant's payments of the installments of the Monthly Operating Expense Estimate for the preceding year's Operating Expenses are greater than
Tenant's Expense Payment for such preceding Operating Year, Landlord shall credit Tenant with any excess, which credit may be offset by Tenant against next due installments of Rent. If the Term
expires prior to the Expense Share Date for the applicable Operating Year and if Tenant's payments of Monthly Operating Expense Estimate either exceed or are less than Tenant's Expense Payment,
Landlord shall send the Operating Expense Statement to Tenant, and an appropriate payment from Tenant to Landlord or refund from Landlord to Tenant shall be made within thirty (30) days. The
provisions of this Subsection 7(b)(i)(4) shall remain in effect notwithstanding any termination of this Lease; provided however, that if upon termination of this Lease Tenant owes Landlord any sums
under this Lease (for Rent or otherwise), Landlord shall have the right to reduce the amount of any refund due Tenant under this Section 7(b)(i)(4) against such sums owed by Tenant to Landlord. 

        c)     Tenant Audit Rights. Tenant shall have the right, at its sole cost and expense, to inspect and/or audit Landlord's books
and records at Landlord's place of business or such other place Landlord regularly maintains such books and records, within nine (9) months following receipt of the Operating Expense Statement
with respect to Operating Expenses. Tenant shall give Landlord not less than seven (7) days prior written notice of its intention to conduct any such audit. In the event Tenant's audit or
inspection discloses that Landlord has overstated the Operating Expenses in any year by five percent (5%) or more, then Landlord shall reimburse Tenant promptly upon demand for the reasonable costs
incurred by Tenant in connection with the audit or inspection. In addition, with respect to any item of Operating Expenses which are overstated, Tenant shall be entitled to audit the books and records
for the prior two years to determine whether such items were also overstated in such prior years. 

        d)    Tenant's Personalty. Tenant shall pay all taxes imposed upon Tenant's furnishings, trade fixtures, equipment or other
personal property. 

        8.     Intentionally Omitted.

        9.     Late Charge. Landlord may charge a late payment charge of five percent (5%) of any installment of Fixed Basic Rent or
Additional Rent that is not paid within five (5) days after notice of such delinquency. The right of Landlord to charge a late charge with respect to past due installments 

10

 

of
Fixed Basic Rent and Additional Rent is in addition to Landlord's rights and remedies upon an event of default. 

        10.   Insurance.

        a)    Tenant's
Insurance. 

        (i)    Tenant
covenants and represents, such covenants and representations being specifically designed to induce Landlord to execute this Lease, that during the entire Term, at
its sole cost and expense, Tenant shall obtain, maintain and keep in full force and effect the following insurance: 

        (1)   "All
Risk" property insurance against fire, theft, vandalism, malicious mischief, sprinkler leakage and such additional perils as are now, or hereafter may be, included
in a standard extended coverage endorsement from time to time in general use in the Commonwealth of Pennsylvania upon property of every description and kind owned by Tenant and or under Tenant's care,
custody or control located in the Building, the Property or within the Premises or for which Tenant is legally liable or installed by or on behalf of Tenant, including by way of example and not by way
of limitation, furniture, fixtures, fittings, installations and any other personal property (but excluding the work done by Landlord in connection with Exhibit D which is owned and will be
insured by Landlord) in an amount equal to the full replacement cost thereof. 

        (2)   Commercial
General Liability Insurance coverage to include personal injury, bodily injury, broad form property damage, operations hazard, owner's protective coverage,
contractual liability, products and completed operations liability naming Landlord and Landlord's mortgagee or trust deed holder and ground lessors (if any) as additional named insureds in limits of
not less than Five Million Dollars ($5,000,000.00). 

        (3)   Business
interruption insurance in such amounts as will reimburse Tenant for direct or indirect loss of earnings attributable to all perils commonly insured against by
prudent tenants or assumed by Tenant pursuant to this Lease or attributable to prevention or denial of access to the Premises or Building as a result of such perils. 

        (4)   Workers'
Compensation insurance in form and amount as required by law. 

        (5)   Any
other form or forms of insurance or any increase in the limits of any of the aforesaid enumerated coverages or other forms of insurance the mortgagees or ground
lessors (if any) of Landlord may reasonably require from time to time if in the reasonable opinion of mortgagees or ground lessors said coverage and/or limits become less than that commonly maintained
by prudent tenants in similar buildings in the area by tenants making similar uses. 

        (ii)   All
property insurance policies shall be taken out with insurers rated A+XV (or if such ratings are not in effect, the equivalent thereof) by Best Rating Service, or
any successor thereto (or if there be none, an organization having a National reputation) who are licensed to do business in the state in which the Property is located and shall be in form
satisfactory from time to time to Landlord. A policy or certificate evidencing such insurance together with a paid bill shall be delivered to Landlord prior to
the Commencement Date hereof. Such insurance policy or certificate will provide an undertaking by the insurers to notify Landlord and the mortgagees or ground lessors (if any) of Landlord in writing
not less than thirty (30) days prior to any material change, reduction in coverage, cancellation, or other termination thereof. Should a certificate of insurance initially be provided a policy
shall be furnished by Tenant within thirty (30) days of the Commencement Date. 

        (iii)  Intentionally
omitted. 

11

 

        (iv)  Tenant
agrees that it will not keep or use or offer for sale (if sales of goods is a permitted use pursuant to this Lease) in or upon the Premises or within the
Property any article which may be prohibited by any insurance policy in force from time to time covering the Property or Premises. In the event Tenant's occupancy or conduct of business in or on the
Premises or Property, whether or not Landlord has consented to the same, results in any increase in premiums for insurance carried from time to time by Landlord with respect to the Building, the
Property or the Premises (or by the Association created in accordance with the Declaration with respect to the Property), Tenant shall pay such increase in premiums as Additional Rent within ten
(10) days after being billed therefor by Landlord. In determining whether increased premiums are a result of Tenant's use and occupancy a schedule issued by the organization computing the
insurance rate on the Property or Premises showing the components of such rate shall be conclusive evidence of the items and charges making up such rate. Upon notice, Tenant shall promptly comply with
all reasonable requirements of the insurance authority or of any insurer now or hereafter in effect relating to the Building, the Property or Premises. 

        (v)   If
any insurance policy carried by either party as required by this Section 10 shall be cancelled or cancellation shall be threatened or the coverage thereunder
reduced or threatened to be reduced in any way by reason of the use or occupation of the Premises or Building or any part thereof by Tenant or any assignee or subtenant of Tenant or anyone permitted
by Tenant to be upon the Premises, and if Tenant fails to remedy the conditions giving rise to such cancellation or threatened cancellation or reduction in coverage on or before (i) forty-eight
(48) hours after notice thereof from Landlord, or (ii) prior to such cancellation or reduction becoming effective, Tenant shall be in default and an event of default shall occur under
this Lease and Landlord shall have all of the remedies available to Landlord pursuant to this Lease. 

        b)    Landlord's Insurance. Landlord covenants and agrees that throughout the Term it will insure the Property, the Building and
the initial improvements constructed and/or installed in the Premises by Landlord for Tenant's use and occupancy pursuant to this Lease (excluding any property with respect to which Tenant is
obligated to insure pursuant to Subsection 10(a)(i)(1) above) against damage by fire and standard extended coverage perils and public liability insurance in such reasonable amounts with such
reasonable deductibles as required by any mortgagee or ground lessor, or, if none, as would be carried by a prudent owner of a similar building in the area. In addition, Landlord shall maintain and
keep in force and effect during the Term, rental income insurance insuring Landlord against abatement or loss of Fixed Basic Rent, including items of Additional Rent, in case of fire or other casualty
similarly insured against, in an amount at least equal to the Fixed Basic Rent and Additional Rent during, at the minimum, one lease year hereunder. Landlord may, but shall not be obligated to, take
out and carry any other forms of insurance as it or the mortgagee or ground lessor (if any) of Landlord may require or reasonably determine available. The costs of all insurance carried by Landlord on
the Building or otherwise allocated to the Building pursuant to the Declaration shall be included as an Operating Expenses pursuant to Section 8. Notwithstanding its inclusion as an Operating
Expense or any contribution by Tenant to the cost of insurance premiums by Tenant as provided herein, Tenant acknowledges that it has no right to receive any proceeds from any such insurance policies
carried by Landlord although Landlord shall use such proceeds in the repair and reconstruction of the Building, the Property and the Premises. Tenant further acknowledges that the exculpatory
provisions of this Lease as set forth in Section 45 and the provisions of this Section 10 as to Tenant's insurance are designed to insure adequate coverage as to Tenant's property and
business without regard to fault and avoid Landlord obtaining similar coverage for such loss for its negligence or that of its agents, servants or employees which would result in double coverage for
the same perils includable as part of Operating Expenses which are payable in part by Tenant. Landlord will not carry insurance of 

12

 

any
kind on Tenant's furniture or furnishings, or on any fixtures, equipment, appurtenances or improvements of Tenant under this Lease, and Landlord shall not be obligated to repair any damage thereto
or replace the same. 

        c)     Waiver of Subrogation. Any policy or policies of fire, extended coverage or similar casualty insurance, which either party
obtains in connection with the Premises, Building or Property shall include a clause or endorsement denying the insurer any rights of subrogation against the other party (i.e. Landlord or Tenant) for
all perils covered by such policy. Should such waiver not be available then the policy for which the waiver is not available must name the other party as an additional named insured affording it the
same coverage as that provided the party obtaining such coverage. Any provision of this Lease to the contrary notwithstanding, Landlord and Tenant hereby release the other from any and all liability
or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise (a) from any and all liability for any loss or damage to the property of the releasing
party, (b) for any loss or damage that may result, directly or indirectly, from the loss or damage to such property (including rental value and business interruption), and (c) from legal
liability for any loss or damage to property (no matter who the owner of the property may be), all to the extent that the releasing party's loss or damage is insured or, if not insured, was insurable
under commercially available "all risk" property insurance policies, including additional coverages typically obtained by owners and tenants of comparable office buildings in the vicinity of the
Building, even if such loss or damage or legal liability shall be caused by or result from the fault or negligence of the other party or anyone for whom such party may be responsible and even if the
releasing party is self insured in whole or in part or the amount of the releasing party's insurance is inadequate to cover the loss or damage or legal liability. It is the intention of the parties
that Landlord and Tenant shall look solely to their
respective insurance carriers for recovery against any such property loss or damage or legal liability, without such insurance carriers having any rights of subrogation against the other party. 

        11.   Repairs and Maintenance.

        a)    Tenant
shall, throughout the Term, and at Tenant's sole cost and expense, keep and maintain the Premises in a neat and orderly condition; and, upon expiration of the Term
or earlier termination of this Lease, Tenant shall leave the Premises in good order and condition, ordinary wear and tear, damage by fire or other casualty alone excepted, and for that purpose and
except as stated in this sentence, Tenant will make all necessary repairs to the Premises to deliver it in such condition. Tenant shall not permit any waste, damage or injury to the Premises. Tenant
shall not use or permit the use of any portion of the Common Facilities for other than their intended use as specified by the Landlord from time to time or as specified by the Declaration. 

        b)    Landlord
shall, throughout the Term, make all necessary repairs to the structural elements and Building operating systems and exterior windows and doors of the Premises
and other improvements located on the Property; provided, however, that Landlord shall have no responsibility to make any repairs unless and until Landlord receives written notice of the need for such
repair or knows of the need for such repair. Landlord shall keep and maintain all Common Facilities of the Property and any sidewalks, parking areas, curbs and access ways adjoining the Property in a
clean and orderly condition, free of accumulation of dirt and rubbish and shall keep and maintain all landscaped areas within the Property in a neat and orderly condition. 

        12.   Utilities and Services.

        a)    Landlord
shall provide HVAC equipment servicing the Premises in accordance with Schedule 1 to the Work Letter. Landlord shall furnish the Premises with
electricity, heating and air conditioning for the normal use and occupancy of the Premises as general offices between 8:00 a.m. and 6:00 p.m., Monday through Friday, 9:00 a.m. to
1:00 p.m. on Saturdays ("Business Hours"), of each week during the Term (Building Holidays excepted). Tenant agrees to pay 

13

 

monthly
as Additional Rent all charges for electricity, light, heat or other utility (other than water and sewer) used by Tenant at the Premises. If a separate meter is installed, Tenant shall pay for
the consumption of such utilities based upon its metered usage. If no meter is installed, Tenant shall pay its pro rata share of any utility charges covering the Premises and the other portions of the
Building as equitably allocated among such areas. Tenant's electricity consumption within the Premises (including HVAC) shall be submetered (at Landlord's cost) to Tenant and shall be billed to Tenant
without any mark-up by Landlord. Any air conditioning or heat required by Tenant at times other than during Business Hours shall be provided by a dedicated VAU HVAC unit and shall be
controlled by Tenant and all electricity consumption associated therewith shall be separately submetered to Tenant. 

        b)    In
addition, Tenant agrees to pay as Additional Rent its pro rata share of all charges for electricity, light, or other utility (other than water and sewer) used
generally at the Property (i.e. not leaseable areas of the Building) or allocated to the Building in accordance with the Declaration. Tenant shall pay all bills for separately metered utility usage
within thirty (30) days after receipt thereof. All charges for repairs of any meters servicing the Premises shall be including in Operating Expenses. Tenant's use of electric energy in the
Premises shall not at any time exceed the safe capacity of any of the electric conductors and equipment in or otherwise serving the Premises. If Tenant shall require electricity or install electrical
equipment using current in excess of 110 volts or which will in any way increase the amount of electricity furnished by Landlord for general office use (including but not limited to electrical heating
or refrigeration equipment or electronic data processing machines) or if Tenant shall attempt to use the Premises in such a manner that the services to be furnished by Landlord are required during
periods other than the business hours specified above, Tenant will obtain prior written approval from Landlord and will pay, as Additional Rent, for the resulting additional direct expense to
Landlord, including the expense resulting from the installation of any equipment and meters, promptly upon receipt of an invoice from Landlord. 

        c)     Landlord
shall replace light bulbs, tubes and ballasts for Building Standard lighting fixtures as set forth in the Minimum Standard Tenant Improvements when required in
the Premises. After the second anniversary of the Commencement Date, the cost of replacement light bulbs, tubes, lamps, and ballasts, plus the costs incurred by Landlord for such replacement, shall be
paid by Tenant as Additional Rent in accordance with Landlord's then-current schedule of costs and assessments therefor. 

        d)    Within
the Common Facilities of the Building, Landlord shall furnish reasonably: (i) adequate electricity, (ii) hot and cold water, (iii) lavatory
supplies, (iv) automatically operated elevator service, (v) normal and customary cleaning services (on a five-day a week basis except for Building Holidays) after Business
Hours, (vi) heat and air conditioning in season, (vii) landscaping, (viii) parking lot maintenance, (ix) Common Facilities maintenance and snow and ice removal. Landlord
shall provide janitorial service to the Premises in accordance with the Janitorial Specifications attached hereto as Exhibit F, five days per week except for Building Holidays, after Business
Hours. The cost of the services provided by Landlord pursuant to this subsection 12(c) shall be included as part of Operating Expenses. Any additional services requested by Tenant which are not
provided to all the tenants of the Building shall be paid by Tenant in accordance with invoices therefor as Additional Rent but shall not be included as part of Operating Expenses. 

        e)    Landlord
shall not be liable for any damages to Tenant resulting from the quality, quantity, failure, unavailability or disruption of any services beyond the reasonable
control of Landlord and the same shall not constitute a termination of this Lease or an actual or constructive eviction or entitle Tenant to an abatement of rent. Landlord shall not be responsible for
providing any services not specifically provided for in this Lease. Notwithstanding the foregoing, in the event an interruption in utilities or services mat renders the Premises inaccessible or
unusable for the 

14

 

normal
conduct of Tenant's business shall continue for a period in excess of two (2) business days (i.e. Monday through Friday) following notice of such interruption to Landlord, then all rent
under this Lease shall be abated commencing on the third business day of such interruption and continuing until such utilities or services are again available and the Premises is again accessible and
tenantable for the normal conduct of Tenant's business. 

        13.   Governmental Regulations. Tenant shall comply with all laws, ordinances, notices, orders, rules, regulations and
requirements of all federal, state and municipal government or any department, commission, board of officer thereof, or of the National Board of Fire Underwriters or any other body exercising similar
functions, relating to the Premises or to the use or manner of use of the Premises. Tenant shall not knowingly do or commit, or suffer to be done or committed anywhere in the Building, any act or
thing contrary to any of the laws, ordinances, regulations and requirements referred to in this Section. Tenant shall give Landlord prompt written notice of any accident in the Premises and of any
breakage, defect or failure in any of the systems or equipment servicing the Premises or any portion of the Premises. 

        b)    Landlord
shall comply with all laws, ordinances, notices, orders, rules, regulations and requirements of all federal, state and municipal government or any department,
commission, board of officer thereof, or of the National Board of Fire Underwriters or any other body exercising similar functions, relating to the Property and the use or manner of use of the
Property. 

        14.   Signs. Except for signs which are located wholly within the interior of the Premises and which are not visible from the
exterior of the Premises, Tenant shall not place, erect, maintain or paint any signs upon the Premises or the Property unless the design of such signs are approved by Landlord in writing and comply
with all applicable governmental rules, regulating ordinances or other statutes. Tenant shall be permitted to place a Building Standard sign (as designated by Landlord) at the entrance to its suite
and shall be listed on the Building directory in the main lobby. Tenant shall be solely responsible for all costs and expenses associated with the erection of any signs upon the Premises and shall be
obligated to obtain and provide to Landlord any and all necessary permits prior to the placement or erection of such signs. 

        15.   Alterations, Additions and Fixtures.

        a)    Tenant
shall have the right to install in the Premises any trade fixtures; provided, however, that no such installation and no removal thereof shall be permitted which
affects any structural component or operating system of the Building or Premises and that Tenant shall repair and restore any damage or injury to the Premises or the Property caused by installation or
removal. 

        b)    Tenant
shall not make or permit to be made any alterations, improvements or additions to the Premises or Property without on each occasion first presenting plans and
specifications to Landlord and obtaining Landlord's prior written consent, which shall not be unreasonably withheld or delayed, but may be conditioned upon compliance with reasonable requirements of
Landlord as provided in this Lease. Notwithstanding the foregoing, Tenant may make nonstructural cosmetic alterations to the Premises (including replacing paint, carpet and wall coverings) without
Landlord's consent so long as the cost of same does not exceed the sum of $25,000 in any one instance. If Landlord consents to any proposed alterations, improvements or additions, then Tenant at
Tenant's sole cost and expense, may make the proposed alterations, improvements and additions provided that: (i) Tenant supplies any necessary permits; (ii) such alterations and
improvements do not, in Landlord's judgment, impair the structural strength of the Building or any other improvements or reduce the value of the Property and are at least equal in quality to the
Minimum Standard Tenant Improvements; (iii) Tenant takes or causes to be taken all steps that are otherwise required by Section 16 of this Lease and that are required or permitted by law
in order to avoid the imposition of any mechanic's, laborer's or materialman's lien upon the Premises 

15

 

or
the Property; (iv) Tenant uses a contractor approved by Landlord; (v) the occupants of the Building and of any adjoining real estate owned by Landlord are not annoyed or disturbed by
such work; (vi) the alterations, improvements or additions shall be installed in accordance with the approved plans and specifications and completed according to a construction schedule
approved by Landlord; and (vii) Tenant provides insurance of the types and coverage amounts reasonably required by Landlord. Any and all alterations, improvements and additions to the Premises
which are constructed, installed or otherwise made by Tenant shall be the property of Tenant until the expiration or sooner termination of this Lease; at that time all such alterations and additions
shall remain on the Premises and become the property of Landlord without payment by Landlord unless Landlord, at the time of the approval of such alteration, additions or improvement advised Tenant
that it would be required to remove same upon the expiration or earlier termination of this Lease in which event Tenant will remove such alterations, improvements and additions, and repair and restore
any damage to the Property or the Premises caused by the installation or removal. Notwithstanding anything to the contrary contained in this Lease, Landlord may withhold its approval to any proposed
alterations, additions or improvements to the Premises in its absolute and sole discretion with respect to any such alteration, addition or improvement which Landlord determines involves any
modification to the Building's exterior or its structural, electrical, mechanical or plumbing systems, or any components thereof. 

        16.   Mechanic's Liens. Tenant shall promptly pay any contractors and materialmen who supply labor, work or materials to Tenant
at the Premises or the Property so as to minimize the possibility of a lien attaching to the Premises or the Property. Tenant shall take all steps permitted by law in order to avoid the imposition of
any mechanic's, laborer's or materialman's lien upon the Premises or the Property. Should any such lien or notice of lien be filed for work performed for Tenant other than by Landlord, Tenant shall
cause such lien or notice of lien to be discharged of record by payment, deposit, bond or otherwise within thirty (30) days after Tenant's receipt of notice thereof, whichever is earlier,
regardless of the validity of such lien or claim. If Tenant shall fail to cause such lien or claim to be discharged and removed from record within such thirty (30) day period, then, without
obligation to investigate the validity thereof and in addition to any other right or remedy Landlord may have, Landlord may, but shall not be obligated to, contest the lien or claim or discharge it by
payment, deposit, bond or otherwise; and Landlord shall be entitled to compel the prosecution of an action for the foreclosure of such lien by the lienor and to pay the amount of the judgment in favor
of the lienor with interest and costs. Any amounts so paid by Landlord and all costs and expenses including, without limitation, reasonable attorneys' fees incurred by Landlord in connection
therewith, together with interest ("Interest") at an interest rate equal to the Prime Rate published from time to time in the Money Rates column of the Wall Street Journal plus 2% (or, if lower, the
highest rate then allowed under the usury laws of the Commonwealth of Pennsylvania) from the respective dates of Landlord's making such payment or incurring such cost or expense, which shall
constitute Additional Rent payable under this Lease promptly upon demand therefor. Nothing in this Lease is intended to authorize Tenant to do or cause any work or labor to be done or any materials to
be supplied for the account of Landlord, all of the same to be solely for Tenant's account and at Tenant's risk and expense. Further, notwithstanding anything to the contrary contained in this Lease,
nothing contained in or contemplated by this Lease shall be deemed or construed in any way to constitute the consent or request by Landlord for the performance of any work or services or the
furnishing of any materials for which any lien could be filed against the Premises, the Building or the Property or any part of any thereof, nor as giving Tenant any right, power or authority to
contract or permit the performance of any work or services or the furnishing of any materials within the meaning of 49 P.S. Sections 1101-1902, as amended, or under the Contractor and
Subcontractor Payment Act or any amendment thereof or otherwise for which any lien could be filed against the Premises, the Building, the Property or any part of any thereof. Throughout this Lease the
term "mechanic's lien" is used to include any lien, encumbrance or charge levied or imposed upon the Premises, the Building or the Property or any interest therein or income 

16

 

therefrom
on account of any mechanic's, laborer's or materialman's lien or arising out of any debt or liability to or any claim or demand of any contractor, mechanic, supplier, materialman or laborer
and shall include without limitation any mechanic's notice of intention given to Landlord or Tenant, any stop order given to Landlord or Tenant, any notice of refusal to pay naming Landlord or Tenant
and any injunctive or equitable action brought by any person entitled to any mechanic's lien. 

        17.   Landlord's Right of Entry.

        a)    Tenant
shall permit Landlord and the authorized representatives of Landlord and of any mortgagee or any prospective mortgagee to enter the Premises at all reasonable
times, with prior notice to Tenant, for the purpose of (i) inspecting the Premises or (ii) making any necessary repairs to the Premises or to the Building and performing any work
therein. During the progress of any work on the Premises or the
Building, Landlord will attempt not to inconvenience Tenant, but shall not be liable for inconvenience, annoyance, disturbance, loss of business or other damage to Tenant by reason of making any
repair or by bringing or storing materials, supplies, tools and equipment in the Premises during the performance of any work, and the obligations of Tenant under this Lease shall not be thereby
affected in any manner whatsoever. 

        b)    Landlord
shall have the right at all reasonable times, with prior notice to Tenant, to enter and to exhibit the Premises for the purpose of inspection or showing the
Premises in connection with a sale or mortgage and, during the last ten (10) months of the Term or any time following Tenant's election to exercise a Termination Option, to enter upon and to
exhibit the Premises to any prospective tenant. 

        c)     If
the Premises are vacated or abandoned by Tenant, (i.e., Tenant has vacated the Premises and has failed to satisfy its monetary obligations under this Lease) Landlord
shall be permitted to show the Premises at any time and to prepare the Premises for re-occupancy. 

        d)    Landlord
acknowledges and agrees that some information maintained on the Premises by Tenant may constitute Protected Health Information as such term is defined in the
Standards for Privacy of Individually Identifiable Health Information under the Health Insurance Portability and Accountability Act of 1996 (the "Act"). Accordingly, the parties agree that each shall
cooperate with each other so that each party may perform its respective obligations under this Lease and exercise its rights under this Lease in a manner consistent with the Act. 

	18.
	Damage by Fire or Other Casualty.

        a)    If
the Premises or Building is damaged or destroyed by fire or other casualty, Tenant shall promptly notify Landlord whereupon Landlord shall, subject to the consent of
Landlord's present or future mortgagee and to the conditions set forth in this Section 18, repair, rebuild or replace such damage and restore the Premises to substantially the same condition as
the Premises were in immediately prior to such damage or destruction; provided, however, that Landlord shall only be obligated to restore such damage or destruction to the extent of the proceeds of
fire and other extended coverage insurance policies. Landlord shall provide Tenant with notice of how long the repair and restoration of the Premises is anticipated to take within sixty
(60) days following the date of such fire or other casualty. Notwithstanding the foregoing, if the Premises or the Building is destroyed or damaged to the extent that in the Landlord's
insurance company's adjuster's judgment the Premises or the Building cannot be repaired or restored within one hundred eighty (180) days after the date of such casualty, Landlord or Tenant may
terminate this Lease by written notice to Tenant. In addition to the foregoing, in the event Landlord does not complete the repair and restoration within two hundred and seventy (270) days
following the date of the casualty, then Tenant may upon three (3) days written notice to Landlord terminate this Lease. 

17

  

        b)    The
repair, rebuilding or replacement work shall be commenced promptly and completed with due diligence, taking into account the time required by Landlord to effect a
settlement with, and procure insurance proceeds from, the insurer, and for delays beyond Landlord's reasonable control provided, however, such delays shall not extend the 270 day period set
forth in section 18(a) above. 

        c)     The
net amount of any insurance proceeds recovered by reason of the damage or destruction of the Building (meaning the gross insurance proceeds excluding proceeds
received pursuant to a rental coverage endorsement and the cost of adjusting the insurance claim and collecting the insurance proceeds) shall be applied towards the cost of restoration.
Notwithstanding anything to the contrary in this Lease, if in Landlord's sole opinion the net insurance proceeds will not be adequate to complete such restoration, Landlord shall have the right to
terminate this Lease and all the unaccrued obligations of the parties hereto by sending a written notice of such termination to Tenant specifying a termination date no less than ten (10) days
after its transmission; provided, however, that Tenant may require Landlord, except during the last two (2) years of the Term, to withdraw the notice of termination by agreeing to pay the cost
of restoration in excess of the net insurance proceeds and by giving Landlord adequate security for such payment prior to the termination date specified in Landlord's notice of termination. If the net
insurance proceeds are more than adequate, the amount by which the net insurance proceeds exceed the cost of restoration will be retained by Landlord or applied to repayment of any mortgage secured by
the Premises. 

        d)    Landlord's
obligation or election to restore the Premises under this Section or to terminate this Lease shall be subject to the terms of any present or future mortgage
affecting the Premises and to the mortgagee's consent if required in the mortgage and shall not, in any event, include the repair, restoration or replacement of the fixtures, improvements,
alterations, furniture or any other property owned, installed, made by, or in the possession of Tenant other than the initial tenant improvements installed and/or constructed by Landlord as part of
its initial fitout of the Premises. 

        e)    If
Tenant is dispossessed of the Premises due to fire or other casualty, Tenant will receive an abatement of its Fixed Basic Rent during the period Tenant is
dispossessed. 

        19.   Non-Abatement of Rent. Except as otherwise expressly provided in Subsection 18(e) and as to condemnation in
Subsections 21(a) and (b) there shall be no abatement or reduction of the Fixed Basic Rent, Additional Rent or other sums payable under this Lease for any cause whatsoever and this Lease shall
not terminate, nor shall Tenant be entitled to surrender the Premises, in the event of fire, casualty or condemnation. 

        20.   Indemnification. Except to the extent that such loss, costs or damages were caused by negligence of Landlord, its
employees, agents or contractors and subject to the provisions of Subsection 10(c) above, Tenant hereby agrees to indemnify, defend and hold the Landlord and its employees, agents and contractors
harmless from any loss, costs and damages (including reasonable attorney's fees and costs) suffered by Landlord, its agents, employees or contractors, as a result of (i) any claim by a third
party, its agents, employees or contractors arising from Tenant's use or occupancy of the Premises; (ii) an event of default under this Lease or any failure by Tenant to perform any of the
terms or conditions of this Lease to be performed by it or (iii) any breach of any representations and warranties made by Tenant hereunder. Tenant shall have the right to designate counsel
acceptable to Landlord, such approval not to be unreasonably withheld, to assume the defense of any such third party claim on behalf of itself and Landlord. Landlord shall not have the right to settle
any claim without the consent of Tenant. This indemnity shall survive the expiration of the Term or earlier termination of this Lease. 

        b)    Except
to the extent that such loss, costs or damages were caused by negligence or misconduct of Tenant, its employees, agents, contractors or invitees and subject to the
provisions of 

18

 

subsection
10(c) above, Landlord hereby agrees to indemnify, defend and hold the Tenant and its employees, agents and contractors harmless from any loss, costs and damages (including reasonable
attorney's fees and costs) suffered by Tenant, its agents, employees or contractors, as a result of any claim by a third party, its agents, employees or contractors arising from Landlord's ownership
and operation of the Building and the Property. Landlord shall have the right to designate counsel acceptable to Tenant, such approval not to be unreasonably withheld, to assume the defense of any
such third party claim on behalf of itself and Tenant. Tenant shall not have the right to settle any claim without the consent of Landlord. This indemnity shall survive the expiration of the Term or
earlier termination of this Lease. 

        21.   Condemnation.

        a)    Termination. If (i) all of the Premises are covered by a condemnation; or (ii) any of the Premises is
covered by a condemnation and the remaining part is insufficient for the reasonable operation therein of Tenant's business; or (iii) subject to the provisions of Subsection
21(b)(i) hereof, any of the Property is covered by a condemnation and it would be impractical or the condemnation proceeds are insufficient to restore the remainder of the Property; then, in
any such event, this Lease shall terminate and all obligations under this Lease shall cease (except for those specifically set forth in the Lease as surviving the expiration of the Term or earlier
termination of this Lease) as of the date upon which possession is taken by the condemnor. Upon such termination the Fixed Basic Rent and all Additional Rent herein reserved shall be apportioned and
paid in full by Tenant to Landlord to that date and all such rent prepaid for periods beyond that date shall forthwith be repaid by Landlord to Tenant. 

        b)    Partial Condemnation.

        (i)    If
there is a partial condemnation and the Lease terminates pursuant to Subsection 21(a)(iii) hereof, then Tenant may require Landlord, except during the last two
(2) years of the Term, to withdraw its notice of termination by: [A] giving Landlord written notice thereof within ten (10) days from transmission of Landlord's
notice to Tenant of Landlord's intention to terminate, [B] agreeing to pay the cost of restoration in excess of the condemnation proceeds reduced by those sums expended by
Landlord in collecting the condemnation proceeds, and [C] giving Landlord adequate security for such payment within such ten (10) day period. 

        (ii)   If
there is a partial condemnation and this Lease has not been terminated pursuant to subsection (a) hereof, Landlord shall restore the Building and the
improvements which are part of the Premises to a condition and size as nearly comparable as reasonably possible to the condition and size thereof immediately prior to the date upon which possession
shall have been taken by the condemnor; provided, however, that Landlord shall only be obligated to restore such damage from condemnation to the extent possible with the award damage. If the
condemnation proceeds are more than adequate to cover the cost of restoration and the Landlord's expenses in collecting the condemnation proceeds, any excess proceeds shall be retained by Landlord or
applied to repayment of any mortgage secured by the Premises. 

        (iii)  If
there is a partial condemnation and this Lease has not been terminated by the date upon which the condemnor obtains possession, the obligations of Landlord and
Tenant under this Lease shall be unaffected by such condemnation except that there shall be an equitable abatement for the balance of the Term of the Fixed Basic Rent according to the value of the
Premises before and after the date upon which the condemnor takes possession. In the event that the parties are unable to agree upon the amount of such abatement, either party may submit the issue to
arbitration. 

19

 

        (iv)  Award. In the event of a condemnation affecting Tenant, Tenant shall have the right to make a claim against the
condemnor for removal expenses and moving expenses, loss of business and any other claims Tenant may have; provided and to the extent, however, that such claims or payments do not reduce the sums
otherwise payable by the condemnor to Landlord. Except as aforesaid, Tenant hereby waives all claims against Landlord and against the condemnor, and Tenant hereby assigns to Landlord all claims
against the condemnor including, without limitation, all claims for leasehold damages and diminution in value of Tenant's leasehold interest. 

        22.   Quiet Enjoyment. Tenant, upon paying the Fixed Basic Rent, Additional Rent and other charges herein required and
observing and keeping all covenants, agreements and conditions of this Lease, shall quietly have and enjoy the Premises during the Term without hindrance or molestation by anyone claiming by or
through Landlord, subject, however, to the exceptions, reservations and conditions of this Lease, the Declaration. 

        23.   Rules and Regulations. The Landlord hereby reserves the right to prescribe, from time to time, at its sole discretion,
reasonable rules and regulations (herein called the "Rules and Regulations") attached hereto as Exhibit G governing the use and enjoyment of the Premises and the remainder of the Property. The
Rules and Regulations shall not materially interfere with the Tenant's use and enjoyment of the Premises in accordance with the provisions of this Lease for the Permitted Use and shall not increase or
modify Tenant's obligations under this Lease. In the event of a conflict between the Lease and such rules and regulations, the Lease shall control. The Tenant shall comply at all times with the Rules
and Regulations and shall cause its agents, employees, invitees, visitors, and guests to do so. Landlord shall not be responsible to Tenant for non-observance or violation of any of the
Rules and Regulations by any tenant of the Building provided, however, Landlord shall enforce the Rules and Regulation in an uniform and nondiscriminatory manner. 

        24.   Assignment and Sublease.

        a)    In
the event Tenant desires to assign this Lease or sublease all or part of the Premises to any other party, Tenant shall provide written notice of the terms and
conditions of such assignment or sublease to Landlord prior to the effective date of any such sublease or assignment, and, prior to such effective date, the Landlord shall have the option, exercisable
by written notice to Tenant within ten (10) business days of Landlord's receipt of written notice from Tenant, to: (i) sublease such space from Tenant at the lower rate of (a) the
rental rate per rentable square foot of Fixed Basic Rent and Additional Rent then payable pursuant to this Lease or (b) the terms set forth in the proposed sublease, (ii) recapture (in
the case of subletting) that portion of the Premises to be sublet or all of the Premises (in the case of an assignment) ("Recapture Space") so that such prospective subtenant or assignee shall then
become the sole Tenant of Landlord hereunder, or (iii) recapture the Recapture Space for Landlord's own use, whereupon Tenant shall be fully released from any and all obligations hereunder with
respect to the Recapture Space. 

        b)    In
the event that the Landlord elects not to recapture the Lease as hereinabove provided, the Tenant may nevertheless assign this Lease or sublet the whole or any portion
of the Premises, subject to the Landlord's prior written consent, on the basis of the following terms and conditions: 

        (i)    The
Tenant shall provide to the Landlord the following: 

        (1)   The
name and address of the proposed assignee or subtenant; 

        (2)   All
the terms and conditions of the assignment or subletting; 

        (3)   The
nature and character of the business of the proposed assignee or subtenant; 

20

 

        (4)   Banking,
financial and other credit information relating to the proposed assignee or subtenant reasonably sufficient to enable Landlord to determine the proposed
assignee's or sublessee's financial responsibility; and 

        (5)   In
the event of a subleasing of only a portion of the Premises, plans and specifications for tenant's layout, partitioning, and electrical installations for the portion
of the Premises to be subleased. 

        (ii)   Tenant
shall not be permitted to assign or sublet to the following: 

        (1)   To
a government or quasi-government agency; 

        (2)   To
an entity whose business character is not consistent with the other tenants in the Building; 

        (3)   To
a tenant or prospect with whom Landlord currently is negotiating for space in the Building and for whom Landlord has prepared a preliminary space plan and has
tendered a written proposal. 

        (iii)  The
assignee or subtenant shall assume, by written instrument, all of the obligations of the Tenant as provided by this Lease, and a copy of such assumption agreement
shall be furnished to the Landlord within ten (10) days of its execution, provided, however, any such subtenants shall only be obligated to assume Tenant's obligations arising under this Lease
with respect to the portion of the Premises sublet. Any sublease shall expressly acknowledge that said subtenant's rights against Landlord shall be no greater than those of Tenant. 

        (iv)  The
Tenant and each assignee shall be and remain liable for the observance of all the covenants and provisions of this Lease, including, but not limited to, the payment
of Fixed Basic Rent and Additional Rent reserved herein, through the entire Term, as the same may be renewed, extended or otherwise modified. 

        (v)   The
Tenant and any assignee or subtenant, as applicable, shall promptly pay to Landlord one-half of the profit received from such subleasing or assignment
after deducting the actual and reasonable marketing and legal expenses incurred and commissions paid (not to exceed market rate commissions for comparable transactions) by Tenant in connection with
the assignment or sublease. 

        (vi)  In
any event, the acceptance by the Landlord of any rent from the assignee or from any of the subtenants or the failure of the Landlord to insist upon a strict
performance of any of the terms, conditions and covenants herein shall not release the Tenant herein, nor any assignee or subtenant, from any and all of the obligations to be performed by it in
accordance herewith during and for the entire Term. 

        (vii) Tenant
shall pay to Landlord the sum of One Thousand Five Hundred Dollars ($1,500.00) to cover its handling charges for each request for consent to any sublet or
assignment prior to its consideration of the same. Tenant acknowledges that its sole remedy with respect to any assertion that Landlord's failure to consent to any sublet or assignment is unreasonable
shall be the remedy of specific performance and Tenant shall have no other claim or cause of action against Landlord as a result of Landlord's actions in refusing to consent thereto. 

        c)     If
Tenant is a corporation other than a corporation whose stock is listed and traded on a nationally recognized stock exchange, the provisions of subsection a hereof
shall apply to a transfer (however accomplished, whether in a single transaction or in a series of related or unrelated transactions) of stock (or any other mechanism such as, by way of example, the
issuance of additional stock, a stock voting agreement or change in class(es) of stock) which results in a 

21

 

change
of control of Tenant as if such transfer of stock (or other mechanism) which results in a change of control of Tenant were an assignment of this Lease, and if Tenant is a partnership or joint
venture, said provisions shall apply with respect to a transfer, (by one or more transfers) of an interest in the distributions of profits and losses of such partnership or joint venture (or other
mechanism, such as, by way of example, the creation of additional general partnership or limited partnership interests) which results in a change of control of such a partnership or joint venture, as
if such transfer of an interest in the distributions of profits and losses of such partnership or joint venture which results in a change of control of such partnership or joint venture were an
assignment of this Lease; but said provisions shall not apply to transactions with a corporation into or with which Tenant is merged or consolidated or to which all or substantially all of Tenant's
assets are transferred or to any corporation which controls or is controlled by Tenant or is under common control with Tenant, provided that in the event of such merger, consolidation or transfer of
all or substantially all of Tenant's assets (i) the successor to Tenant has a net worth computed in accordance with generally accepted accounting principles at least equal to the net worth of
Tenant herein named on the date of this Lease, and (ii) proof satisfactory to Landlord of such net worth shall have been delivered to Landlord promptly after the effective date of any such
transaction. In connection with any merger, consolidation or transfer pursuant to this Section 24(c) shall not entitle Landlord to share in any profit pursuant to
Section 24(b)(v) or recapture any Recapture Space pursuant to Section 24(a). 

        d)    Except
as specifically set forth above, no portion of the Premises or of Tenant's interest in this Lease may be acquired by any other person or entity, whether by
assignment, mortgage, sublease, transfer, operation of law or act of the Tenant, nor shall Tenant pledge its interest in this Lease or in any security deposit required hereunder. Notwithstanding the
foregoing, Tenant may, upon ten (10) days written notice to Landlord but without Landlord's prior written consent, and without Landlord having any right to terminate this Lease or share in any
consideration or profit therefor, assign or transfer its entire interest in this Lease and the leasehold estate hereby created, or sublease all or a portion of the Premises, to successor corporation
of Tenant, which for the purposes of this Lease shall mean either (a) any corporation or other business entity which controls, is controlled by, or under common control with, Tenant (a "related
corporation"), or (b) a corporation or other business entity into which or with which Tenant, its corporate successors or assigns, is merged or consolidated, in accordance with applicable
statutory provisions for the merger or consolidation of corporations, provided that by operation of law or by effective provisions contained in the instruments of merger or consolidation the
liabilities of the corporations or other business entities participating in such merger or consolidation are assumed by the corporation or other business entity surviving such merger or consolidation;
provided, however, that Tenant shall have no such right to assign or transfer to a successor corporation unless Tenant shall not be in default in the performance of any of its obligations under this
Lease beyond the applicable notice and cure period. For the purposes hereof "control" shall be deemed to mean ownership of not less than fifty percent (50%) of all of the voting stock of such
corporation, or not less than fifty percent (50%) of all of the legal and equitable interest in any other business entity, or the possession of the power, directly or indirectly, to direct or cause
the direction of management and policy of a corporation or other business entity, whether through the ownership of voting securities, common directors or officers, the contractual right to manage the
business affairs of such business entity, or otherwise. Notwithstanding anything to the contrary contained in this Lease any sale or transfer of Tenant's capital stock through any public exchange, or
redemption or issuance of additional stock of any class, shall not be deemed an assignment, subletting or any other transfer of this Lease or the Premises. 

        e)    In
the event Tenant desires to assign its lease or sublet any portion of the Premises, Tenant shall cause any and all advertisements or notices of availability to be
delivered to Landlord for Landlord's approval prior to releasing or publishing same. 

22

 

        25.   Subordination. Concurrently with the full execution of this Lease, Landlord shall furnish to Tenant (at no charge to
Tenant) a nondisturbance agreement in form reasonably satisfactory to Tenant from the holder of any mortgage or deed of trust currently encumbering the Building. If (but only if) the holder of such
lien or mortgage agrees pursuant to an executed subordination, nondisturbance and attornment agreement not to disturb the use and occupancy of the Premises in accordance with the terms of this Lease
upon any foreclosure, this Lease and Tenant's rights under this Lease shall be subject and subordinate at all times in lien and priority to any first mortgage or other primary encumbrance hereafter
placed upon or affecting the Property or the Premises, and to any second mortgage or encumbrance with the consent of the first mortgagee, and to all renewals, modifications, consolidations and
extensions thereof, without the necessity of any further instrument or act on the part of Tenant. Tenant shall execute and deliver upon demand any further instrument or instruments confirming the
subordination of this Lease to the lien of any such first mortgage or to the lien of any other mortgage, if requested to do so by Landlord with the consent of the first mortgagee, and any further
instrument or instruments of attornment that may be desired by any such mortgagee or Landlord, provided, however, that any holder of such lien or mortgage agrees not to disturb the use and occupancy
of the Premises in accordance with the terms of this Lease upon any foreclosure. Notwithstanding the foregoing, any mortgagee may at any time subordinate its mortgage to this Lease, without Tenant's
consent, by giving notice in writing to Tenant and thereupon this Lease shall be deemed prior to such mortgage without regard to their respective dates of execution and delivery. In that event such
mortgagee shall have the same rights with respect to this Lease as though this Lease had been executed prior to the execution and delivery of the mortgage and had been assigned to such mortgagee.
Landlord shall deliver to Tenant an executed subordination, nondisturbance and attornment agreement ("SNDA") in a form mutually acceptable to each. If Landlord fails to deliver such SNDA within twenty
(20) days following the full execution of this Lease, then Tenant shall be entitled to termination this Lease upon two (2) business days prior notice to Landlord. 

        26.   Curing Defaults. If either party defaults in the performance of any of its obligations under this Lease, the other party
may, without any obligation to do so and in addition to any other rights it may have in law or equity, elect to cure such default on behalf of the defaulting party after written notice as provided
elsewhere in this Lease (except in the case of emergency) to the defaulting party. The defaulting party shall reimburse the other party within thirty (30) days of demand for any sums paid or
costs incurred in curing such default together with Interest from the respective dates of the curing party's making the payments and incurring such costs, provided however that if Tenant cures a
Landlord obligation for which Tenant was obligated to pay (as for example, the premiums for property insurance), then to the extent Tenant was obligated to make payment under this Lease, Tenant may
not recover its expenditure from Landlord. Tenant shall have the right to offset amounts owed to it pursuant to this Section following the issuance of an order or ruling by an arbitrator selected by
the parties pursuant to the rules of the American Arbitration Association in effect as of the date of said dispute, which order or ruling finds that Landlord was responsible for such sums and Landlord
fails to pay same within fifteen (15) days of such order or ruling. 

        27.   Surrender.

        a)    At
the expiration of the Term or earlier termination of this Lease, Tenant shall promptly yield up the Premises and all improvements, alterations and additions thereto,
and all fixtures and equipment servicing the Premises in a condition which is clean of garbage and debris and broom clean and in the same condition, order and repair in which they are required to be
kept throughout the Term, ordinary wear and tear excepted. 

        b)    If
Tenant, or any person claiming through Tenant, continues to occupy the Premises after the expiration of the Term or earlier termination of this Lease or any renewal
thereof without prior written consent of Landlord, the tenancy under this Lease shall become, at the option of Landlord, expressed in a written notice to Tenant and not otherwise, from
month-to-month 

23

 

terminable
by Landlord on thirty (30) days prior notice, under the same terms and conditions set forth in this Lease; (ii) the Fixed Basic Rent during such continued occupancy shall be
one hundred fifty percent (150%) of the amount set forth in Section 6; and (iii) Tenant shall indemnify Landlord for any loss or damage incurred by reason of Tenant's failure to
surrender the Premises within forty five (45) days following the expiration of the Term. Anything to the contrary notwithstanding, any holding over by Tenant without Landlord's prior written
consent shall constitute an event of default under this Lease and shall be subject to all the remedies set forth in Subsection 29(b) of this Lease. 

	28.
	Defaults-Remedies.

        a)    Defaults. It shall be a default or event of default under this Lease if any one or more of the following events occurs: 

        (i)    Tenant
fails to pay in full, when due and without demand, any and all installments of Fixed Basic Rent or Additional Rent or any other charges or payments due and
payable under this Lease whether or not herein included as rent; provided that, on two (2) occasions in any twelve (12) month period, there shall exist no event of default unless Tenant
shall have been given written notice of such failure and shall not have made the payment within three (3) business days following the giving of such notice. 

        (ii)   Tenant
violates or fails to perform or otherwise breaches any agreement, term, covenant or condition contained in this Lease; provided that, on two (2) occasions
in any twelve (12) month period, there shall exist no event of default unless Tenant shall have been given written notice of such failure and shall not have made the payment within five
(5) days following the giving of such notice. 

        b)    Remedies. Upon the occurrence of an event of default under this Lease, Landlord shall have all of the following rights: 

        (i)    If
Landlord incurs a late charge in connection with any payment which Tenant has failed to make within the times required in this Lease, Tenant shall pay Landlord, in
addition to such payment due,
the full amount of such late charge incurred by Landlord. In addition, Landlord shall be entitled to Interest on any amounts which remain outstanding beyond the date such payments are due to Landlord.
Nothing in this Lease shall be construed as waiving any rights of Landlord arising out of any default of Tenant, by reason of Landlord's imposing or accepting any such late charge(s) and/or interest;
the right to collect such late charge(s) and/or interest is separate and apart from any rights relating to remedies of Landlord after default by Tenant including, without limitation, the rights and
remedies of Landlord provided herein. 

        (ii)   Landlord
may accelerate the whole or any part of the Fixed Basic Rent and all Additional Rent for the entire unexpired balance of the Term, as well as all other
charges, payments, costs and expenses herein agreed to be paid by Tenant, and any Fixed Basic Rent or other charges, payments, costs and expenses so accelerated shall, in addition to any and all
installments of rent already due and payable and in arrears and any other charge or payment herein reserved, included or agreed to be treated or collected as rent and any other charge, expense or cost
herein agreed to be paid by Tenant which may be due and payable and in arrears, be deemed due and payable as if, by the terms and provisions of this Lease, such accelerated rent and other charges,
payments, costs and expenses were on that date payable in advance all of which sums shall be reduced to the net present value thereof as of the date of payment using a discount factor of seven percent
(7%). 

        (iii)  Landlord
may re-enter the Premises and, at the option of Landlord, remove all persons and all or any property therefrom, either by summary dispossess
proceedings or by 

24

 

any
suitable action or proceeding at law or by force or otherwise, without being liable for prosecution or damages therefor, and Landlord may repossess and enjoy the Premises. Upon recovering
possession of the Premises by reason of or based upon or arising out of a default on the part of Tenant, Landlord may, at Landlord's option, either terminate this Lease or make such alterations and
repairs as may be necessary in order to relet the Premises and may relet the Premises or any part or parts thereof, either in Landlord's name or otherwise, for a term or terms which may, at Landlord's
option, be less than or exceed the period which would otherwise have constituted the balance of the Term and at such rent or rents and upon such other terms and conditions as in Landlord's sole
discretion may seem advisable and to such person or persons as may in Landlord's discretion seem best; upon each such reletting all rents received by Landlord from such reletting shall be applied as
follows: first, to the payment of any costs and expenses of such reletting, including all costs of alterations and repairs; second, to the payment of any indebtedness other than Fixed Basic Rent,
Additional Rent or other charges due hereunder from Tenant to Landlord; third, to the payment of Fixed Basic Rent, Additional Rent and other charges due and unpaid hereunder; and the residue, if any,
shall be held by Landlord and applied in payment of future rent as it may become due and payable hereunder. If rentals received from reletting during any month are less than that to be paid during
that month by Tenant, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re-entry or taking possession of the Premises or the
making of alterations or improvements thereto or the reletting thereof shall be construed as an election on the part of Landlord to terminate this Lease unless written notice of termination is given
to Tenant. Landlord shall in no event be liable in any way whatsoever for failure to relet the Premises or, in the event that the Premises or any part or parts thereof are relet, for failure to
collect the rent thereof under such reletting. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach. 

        (iv)  Landlord
may terminate this Lease and the Term without any right on the part of Tenant to waive the forfeiture by payment of any sum due or by other performance of any
condition, term or covenant broken. If Landlord shall elect to terminate this Lease notwithstanding reentry upon the Premises by Landlord upon the occurrence of an event of default Tenant shall be and
remain liable to Landlord in an amount computed as follows: (a) an amount equal to the sum of all Rent then in arrears plus (b) all costs and expenses incurred by Landlord in connection
with the event of default and any reletting of the Premises, including, without limitation, (i) costs of reentry, repair and renovation, (ii) the value of all inducements granted or paid
to new tenants of the Premises in connection with reletting including, without limitation, construction allowances and the value of rent-free periods, (iii) brokers' commissions and
advertising expenses related to the reletting, (iv) watchman's wages and any sheriff's, marshall's, constable's or other officials' commissions, whether chargeable to Landlord or Tenant, and
(v) reasonable attorneys' fees, costs and expenses; plus (c) interest accrued on the aggregate of the aforesaid sums from the date each was payable (or, with respect to sums owing under
clause (b) from the date each was incurred by Landlord) until paid by Tenant (whether before or alter judgment) at the rate of Interest; against which sum Tenant shall be credited with
(d) all rentals actually received by Landlord during what would have been the remainder of the Term from any replacement tenant to which the Premises are relet. 

        (v)   CONFESSION OF JUDGMENT FOR POSSESSION. UPON THE OCCURRENCE OF A MONETARY DEFAULT IN AN AMOUNT EQUAL TO OR GREATER THAN
THE AMOUNT OF FIXED BASIC RENT DUE FOR TWO MONTHS (AT THE THEN CURRENT RATE), THEN, UPON THREE (3) BUSINESS DAYS NOTICE TO TENANT OR UPON THE EXPIRATION OR TERMINATION OF THE TERM OF THIS
LEASE, 

25

 

FOR
THE PURPOSE OF OBTAINING POSSESSION OF THE PREMISES, TENANT HEREBY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE,
AS ATTORNEY FOR TENANT AND ALL PERSONS CLAIMING UNDER OR THROUGH TENANT, TO APPEAR FOR AND CONFESS JUDGMENT AGAINST TENANT FOR POSSESSION OF THE PREMISES, AND AGAINST ALL PERSONS CLAIMING UNDER OR
THROUGH TENANT, IN FAVOR OF LANDLORD, FOR RECOVERY BY LANDLORD OF POSSESSION THEREOF, FOR WHICH THIS AGREEMENT OR A COPY HEREOF VERIFIED BY AFFIDAVIT, SHALL BE A SUFFICIENT WARRANT; AND THEREUPON A
WRIT OF POSSESSION MAY IMMEDIATELY ISSUE FOR POSSESSION OF THE PREMISES, WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER AND WITHOUT ANY STAY OF EXECUTION. IF FOR ANY REASON AFTER SUCH ACTION HAS BEEN
COMMENCED THE SAME SHALL BE TERMINATED AND THE POSSESSION OF THE PREMISES REMAINS IN OR IS RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT UPON THE OCCURRENCE OF ANY SUBSEQUENT EVENT OF DEFAULT TO
CONFESS JUDGMENT IN ONE OR MORE FURTHER ACTIONS IN THE MANNER AND FORM SET FORTH ABOVE TO RECOVER POSSESSION OF SAID PREMISES FOR SUCH SUBSEQUENT DEFAULT. TENANT WAIVES ALL ERRORS IN CONNECTION WITH
ANY SUCH CONFESSION OF JUDGMENT. NO SUCH TERMINATION OF THIS LEASE, NOR TAKING, NOR RECOVERING POSSESSION OF THE PREMISES SHALL DEPRIVE LANDLORD OF ANY REMEDIES OR ACTION AGAINST TENANT FOR FIXED
BASIC RENT, ADDITIONAL RENT OR FOR OTHER SUMS DUE HEREUNDER OR FOR DAMAGES DUE OR TO BECOME DUE FOR THE BREACH OF ANY CONDITION OR COVENANT HEREIN CONTAINED, NOR SHALL THE BRINGING OF ANY SUCH ACTION
FOR RENT AND/OR OTHER SUMS DUE HEREUNDER, OR BREACH OF COVENANT OR CONDITION NOR THE RESORT TO ANY OTHER REMEDY HEREIN PROVIDED FOR THE RECOVERY OF RENT AND/OR OTHER SUMS DUE HEREUNDER OR DAMAGES FOR
SUCH BREACH BE CONSTRUED AS A WAIVER OF THE RIGHT TO INSIST UPON THE FORFEITURE AND TO OBTAIN POSSESSION IN THE MANNER HEREIN PROVIDED. 

        c)     Waiver of Jury Trial. IT IS MUTUALLY AGREED BY AND BETWEEN LANDLORD AND TENANT THAT (A) THEY HEREBY WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OF OCCUPANCY OF THE PREMISES OR CLAIM OF INJURY OR DAMAGE, AND (B) IN ANY ACTION ARISING HEREUNDER, THE LEGAL FEES OF THE PREVAILING PARTY WILL
BE PAID BY THE OTHER PARTY TO THE ACTION. 

        d)    Non-Waiver. No waiver by Landlord of any breach by Tenant of any of Tenant's obligations, agreements or
covenants herein shall be a waiver of any subsequent breach or of any other obligation, agreement or covenant, nor shall any forbearance by Landlord to seek a remedy for any event of default by Tenant
be a waiver by Landlord of any rights and remedies with respect to such or any subsequent event of default. 

        e)    Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or 

26

 

hereafter
existing at law or in equity or by statute. Landlord shall have no duty to mitigate its damages in the event of Tenant's default under this Lease. 

        29.   Condition of Premises. Tenant represents that the Property and the Premises, the zoning thereof, the street or streets,
sidewalks, parking areas, curbs and access ways adjoining them, any surface conditions thereof, and the present uses and non-uses thereof, have been examined by Tenant and Tenant accepts
them in the condition or state in which they now are, or any of them now is, without relying on any representation, covenant or warranty, express or implied, in fact or in law, by Landlord and without
recourse to Landlord, the nature, condition or usability thereof or the use or uses to which the Premises and the Property or any part thereof may be put under present zoning ordinances or otherwise,
except as to work to be performed by Landlord pursuant to Section 3 and except as to defects in such work. 

        30.   Hazardous Substances.

        a)    Tenant
shall not knowingly and intentionally cause or allow the generation, treatment, storage or disposal of Hazardous Substances on or near the Premises or Property.
"Hazardous Substances" shall mean (i) any hazardous substance as that term is now or hereafter defined in the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42
U.S.C. 9601 et seq., as amended, (ii) any hazardous waste or hazardous substance as those terms are now or hereafter defined in any local, state or Federal law, regulation or ordinance not
inapplicable to the Premises and Property, or (iii) petroleum including crude oil or any fraction thereof. In the event Tenant uses any Hazardous Substances, Tenant shall dispose of such
substances in accordance with all applicable Federal, state and local laws, regulations and ordinances. 

        b)    Tenant
agrees to indemnify, defend and hold harmless the Landlord, its employees, agents, successors, and assigns, from and against any and all damage, claim, liability,
or loss, including reasonable attorneys' and other fees, arising out of or in any way connected to the generation, treatment, storage or disposal of Hazardous Substances by Tenant, its employees,
agents, contractors, or invitees, on or near the Premises or Property. Such duty of indemnification shall include, but not be
limited to damage, liability, or loss pursuant to all Federal, state and local environmental laws, rules and ordinances, strict liability and common law. Tenant shall not be responsible for and
Operating Expenses shall not include any expense incurred by Landlord on account of Hazardous Substances existing at the Property as of the Commencement Date or on account of Hazardous Substances
introduced onto or into the Property by persons other than Tenant and its employees, agents, contractors, and invitees. 

        c)     Tenant
agrees to notify Landlord immediately of any disposal of Hazardous Substances in the Premises or Property, of any discovery of Hazardous Substances in the Premises
or the Property, or of any notice by a governmental authority or private party alleging or suggesting that a disposal of Hazardous Substances on or near the Premises or Property may have occurred.
Furthermore, Tenant shall provide the Landlord with full and complete access to any documents or information in its possession or control relevant to the question of the generation, treatment,
storage, or disposal of Hazardous Substances on or near the Premises or the Property. 

        d)    Landlord
represents and warrants that, to the best of its knowledge, except as disclosed in Environmental Reports (as defined below), there are no Hazardous Substances
in, under or about the Building or Property, which require response, removal or remediation under any applicable law and that there exist no violations of any laws, rules or regulations applicable
thereto. The term Environmental Reports shall mean the following: (i) Phase I Environmental Site Assessment of 227 Washington Street, Conshohocken, Pennsylvania prepared by Oxford
Engineers & Consultants, Inc. dated August 8, 1998; (ii) Phase I Environmental Site Assessment for the Amcar Property, 225 Washington Street, Conshohocken, Pennsylvania
prepared by Oxford Engineers & Consultants, Inc. dated October, 1999; (iii) Phase I Environmental Site Assessment for 

27

 

Conshohocken
Industrial Park and SEPTA Parcel prepared by Oxford Engineers & Consultants, Inc. dated June, 1997; and (iv) Phase II Environmental Site Investigation of the Amcar
Facility dated January 2000. 

        31.   Recording. Neither this Lease nor a memorandum of this Lease shall be recorded in any public records without the written
consent of Landlord. 

        32.   Brokers' Commission. Tenant represents and warrants to Landlord that the Brokers (as defined in the Preamble) are the
sole brokers with whom Tenant has negotiated in bringing about this Lease and Tenant agrees to indemnify and hold Landlord and its mortgagee(s) harmless from any and all claims of other brokers and
expenses in connection therewith arising out of or in connection with the negotiation of or the entering into this Lease by Landlord and Tenant. In no event shall Landlord's mortgagee(s) have any
obligation to any broker involved in this transaction. In the event that no broker was involved as aforesaid, then Tenant represents and warrants to the Landlord that no broker brought about this
transaction, and Tenant agrees to indemnify and hold Landlord harmless from any and all claims of any broker arising out of or in connection with the negotiations of, or entering into of, this Lease
by Tenant and Landlord. 

        33.   Notices. All notices, demands, requests, consents, certificates, and waivers required or permitted hereunder from either
party to the other shall be in writing and sent by United States certified mail, return receipt requested, postage prepaid, or by recognized overnight courier, addressed as follows: 

	If to Tenant:	 	 
	

CardioNet, Inc.

510 Market Street

San Diego, CA 92101

Atten: Robert Krist, Chief Financial Officer	
 	

 
	

with a copy to:	
 	

 
	

Steven A. Kaye, Esquire

Klehr, Harrison, Harvey, Branzburg & Ellers LLP

260 South Broad Street

Philadelphia, PA 19102	
 	

 
	

If to Landlord:	
 	

 
	

Washington Street Associates II, L.P.

700 South Henderson Road

Suite 225

King of Prussia, PA 19406

Atten: General Partner	
 	

 
	

with a copy to:	
 	

 
	

Kevin W. Walsh, Esquire

Pepper Hamilton LLP

3000 Two Logan Square

Eighteenth and Arch Streets

Philadelphia, PA 19103	
 	

 

Either
party may at any time, in the manner set forth for giving notices to the other, specify a different address to which notices to it shall thereafter be sent. All notices shall be effective upon
receipt or rejection of receipt by the addressee. 

28

 

        34.   No Option. The submission of this Lease by Landlord to Tenant for examination shall not constitute a reservation of or
option for the Premises. This Lease shall become effective only upon execution thereof by an authorized officer of the general partner of the Landlord on behalf of Landlord and by an authorized
officer of Tenant and upon the receipt by Tenant of the fully executed SNDA referred to in Section 25 above. 

        35.   Inability to Perform. If either party is delayed or prevented from performing any of its obligations under this Lease by
reason of strike, labor troubles, or any cause whatsoever beyond that party's control, the period of such delay or such prevention shall be deemed added to the time herein provided for the performance
of any such obligation. 

        36.   Survival. Notwithstanding anything to the contrary contained in this Lease, the expiration of the Term whether by lapse
of time or otherwise, shall not relieve Tenant from its obligations accruing prior to the expiration of the Term. 

        37.   Corporate Tenants. If Tenant is a corporation, the person(s) executing this Lease on behalf of Tenant hereby covenant(s)
and warrant(s) that: Tenant is a duly formed corporation such persons are duly authorized by such corporation to execute and deliver this Lease on behalf of the corporation. 

        38.   Tenant Representations and Warranties. Tenant hereby represents and warrants to Landlord (i) that Tenant's most
recent financial statements delivered to Landlord in connection with the execution of this Lease are true in all material respects and no material adverse changes have occurred with respect thereto,
(ii) that upon Landlord's request, Tenant will deliver to Landlord its most current financial statements which shall be prepared in accordance with generally accepted accounting principles
consistently applied. 

        39.   Waiver of Invalidity of Lease. Each party agrees that it will not raise or assert as a defense to any obligation under
the Lease or make any claim that the Lease is invalid or unenforceable due to any failure of this document to comply with ministerial requirements including, without limitation, requirements for
corporate seals, attestations, witnesses, notarizations or other similar requirements and each party hereby waives the right to assert any such defenses or make any claim of invalidity or
unenforceability due to any of the foregoing. 

        40.   Security Deposit. As additional security for the full and prompt performance by Tenant of the terms and covenants of this
Lease, Tenant has deposited with Landlord the Security Deposit. The Security Deposit shall not constitute rent for any month (unless so applied by Landlord on account of Tenant's default hereunder).
Tenant shall, upon demand, restore any portion of the Security Deposit which may be lawfully applied by Landlord to cure any default by Tenant hereunder. To the extent that Landlord has not applied
the Security Deposit or any portion thereof on account of a default, the Security Deposit, or such remaining portion of the Security Deposit, shall be returned to Tenant, without interest, promptly
following the termination of this Lease. 

        41.   Estoppel Certificate. Tenant shall from time to time, within ten (10) days after Landlord's request or that of any
mortgagee of Landlord, execute, acknowledge and deliver, to Landlord a written instrument in recordable form (the "Tenant Estoppel Certificate"), certifying (i) that this Lease is in full force
and effect and has not been modified, supplemented or amended (or, if there have been modifications, supplements or amendments, that it is in full force and effect as modified, supplemented or
amended, and stating such modifications, supplements and amendments); (ii) the dates to which Fixed Basic Rent and Additional Rent and any other charges arising hereunder have been paid;
(iii) the amount of any prepaid rents or credits due Tenant, if any; (iv) if applicable, that Tenant has accepted possession and has entered into occupancy of the Premises, and
certifying the Commencement Date; (v) whether or not, to the best of the Tenant's knowledge, all conditions under the Lease to be performed by Landlord prior thereto have been satisfied and
whether or not Landlord is then in default in the performance of any covenant, agreement or condition contained in this Lease and 

29

 

specifying
each, if any, unsatisfied condition and each, if any, default of which Tenant may have knowledge; and (vi) any other fact or condition related to the Lease or the Tenant reasonably
requested. Any certification delivered pursuant to the provisions of this Section shall be intended to be relied upon by Landlord and any mortgagee or prospective mortgagee or purchaser of the
Property or of any interest therein. Notwithstanding the foregoing, Tenant's failure to furnish the Tenant Estoppel Certificate within ten (10) days following Landlord's delivery of written
notice to Tenant stating that Tenant failed to provide such Estoppel Certificate during the initial ten(10) day request period shall constitute an event of default under this Lease. 

        42.   Rights Reserved by Landlord. Landlord waives no rights, except those that may be specifically waived herein, and
explicitly retains all other rights including, without limitation, the following rights, each of which Landlord may exercise without notice to Tenant and without liability to Tenant for damage or
injury to property, person or business on account of the exercise thereof, and the exercise of any such rights shall not be deemed to constitute an eviction or disturbance of Tenant's use or
possession of the Premises and shall not give rise to any claim for set-off or abatement of Rent or any other claim: 

        a)    To
change the name or street address of the Building; 

        b)    The
exclusive right to use the name of the Building for all purposes, except that Tenant may use the name on its business address and for no other purpose; 

        c)     To
install, affix and maintain any and all signs on the exterior and on the interior of the Building or the Property; 

        d)    To
decorate or to make repairs, alterations, additions, or improvements, whether structural or otherwise, in and about the Building, or any part thereof, and for such
purposes to enter upon the Premises and during the continuance of any of such work, to temporarily close doors, entry ways, public space and corridors in the Building and to interrupt or temporarily
suspend services or use of Common Facilities, all without affecting any of Tenant's obligations hereunder, so long as the Premises are reasonably accessible and usable; 

        e)    To
furnish door keys for the entry door(s) in the Premises on the Commencement Date and to retain at all times, and to use in appropriate instances, keys to all doors
within and into the Premises. Tenant agrees to purchase only from Landlord additional duplicate keys as required, to change no locks, and not to affix locks on doors without the prior written consent
of the Landlord. Upon the expiration of the Term or Tenant's right to possession, Tenant shall return all keys to Landlord and shall disclose to Landlord the combination of any safes, cabinets or
vaults left in the Premises; 

        f)     To
designate and approve all window coverings used in the Building; 

        g)     To
approve the weight, size and location of safes, vaults and other heavy equipment and articles in and about the Premises and the Building so as not to exceed the legal
load per square foot designated by the structural engineers for the Building, and to require all such items and furniture and similar items to be moved into or out of the Building and Premises only at
such times, in such manner and upon such terms as Landlord shall direct in writing; 

        h)    To
regulate delivery of supplies and the usage of the loading docks, receiving areas and freight elevators; 

        i)     To
erect, use and maintain pipes, ducts, wiring and conduits, and appurtenances thereto, in and through the Premises; 

        j)     To
grant to any person or to reserve unto itself the exclusive right to conduct any business or render any service in the Building or on the Property. If Landlord elects
to make available to 

30

 

tenants
in the Building any services or supplies, or arranges a master contract therefor, Tenant agrees to obtain its requirements, if any, therefor from Landlord or under any such contract, provided
that the charges therefor are reasonably consistent with market rates; 

        k)    To
alter the layout, design and/or use of the Building in such manner as Landlord, in its sole discretion, deems appropriate, so long as the character of the Building as
a first class office building is maintained; and, 

        l)     The
exclusive right to use or dispose of the use of the roof of the Building. 

        43.   Miscellaneous.

        a)    Entire Agreement. This Lease represents the entire agreement between the parties hereto and there are no collateral or
oral agreements or understandings between Landlord and Tenant with respect to the Premises or the Property. No rights, easements or licenses are acquired in the Property or any land adjacent to the
Property by Tenant by implication or otherwise except as expressly set forth in the provisions of this Lease. 

        b)    Modification. This Lease shall not be modified in any manner except by an instrument in writing executed by the parties.
In addition, Tenant agrees to make such changes to this Lease as are required by any mortgagee, provided such changes do not substantially affect Tenant's rights and obligation under this Lease. 

        c)     Interpretation. The masculine (or neuter) pronoun, singular number, shall include the masculine, feminine and neuter
genders and the singular and plural number. 

        d)    Exhibits. Each writing or plan referred to herein as being attached as an Exhibit or otherwise designated herein as an
Exhibit hereto is hereby made a part of this Lease. 

        e)    Captions and Headings. The captions and headings of sections, subsections and the table of contents herein are for
convenience only and are not intended to indicate all of the subject matter in the text
and they shall not be deemed to limit, construe, affect or alter the meaning of any provisions of this Lease and are not to be used in interpreting this Lease or for any other purpose in the event of
any controversy. 

        f)     Severability. If any term or provision of this Lease, or the application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 

        g)     Joint and Several Liability. If two or more individuals, corporations, partnerships or other persons (or any combination
of two or more thereof) shall sign this Lease as Tenant, the liability of each such individual, corporation, partnership or other persons to pay the Rent and perform all other obligations under this
Lease shall be deemed to be joint and several, and all notices, payments and agreements given or made by, with or to any one of such individuals, corporations, partnerships or other persons shall be
deemed to have been given or made by, with or to all of them. In like manner, if Tenant shall be a partnership or other legal entity, the members of which are, by virtue of any applicable law or
regulation, subject to personal liability, the liability of each such member shall be joint and several. 

        h)    No Representations by Landlord. Landlord and Landlord's agents have made no representations, agreements, conditions,
warranties, understandings or promises, either oral or written, other than as expressly set forth in this Lease, with respect to this Lease, the Premises, the Building, and/or the Property. 

31

 

        i)     Relationship of Parties. This Lease shall not create any relationship between the parties other than that of Landlord and
Tenant. 

        j)     Choice of Law. The terms of this Lease shall be construed under the laws of the Commonwealth of Pennsylvania, and that
exclusive jurisdiction and venue shall be in the Court of Common Pleas of the County in which the Property is located without regard to principles of choice or conflict of law; the personam
jurisdiction to which each party submits. 

        k)    Time is of the Essence. Time is of the essence in all provisions of this Lease. 

        l)     Consent. Except where this Lease expressly states that Landlord may withhold its consent or approval in its sole
discretion, whenever in this Lease it is provided in that the consent or approval of Landlord is required, such consent or approval will not be unreasonably withheld, conditioned or delayed. 

        44.   Additional Definitions.

        a)    "Date
of this Lease" or "date of this Lease" shall mean the date of acceptance and execution of this Lease by the Landlord, following execution and delivery thereof to
Landlord by Tenant and that date shall be inserted in the space provided in the Preamble. 

        b)    "Landlord"
as used in this Lease includes the Landlord named above as well as its successors and assigns, each of whom shall have the same rights, remedies, powers,
authorities and privileges as it would have had it originally signed this lease as Landlord. Any such person, whether or not named herein, shall have no liability hereunder after ceasing to hold title
to the Property. Neither Landlord nor any principal of Landlord nor any owner of the Building or the Property, whether disclosed or undisclosed, shall have any personal liability with respect to any
of the provisions of this Lease, the Premises or the Property, and if Landlord is in breach or default with respect to Landlord's obligations under this Lease or otherwise, Tenant shall look solely to
the equity of Landlord in the Premises for the satisfaction of Tenant's remedies. 

        c)     "Tenant"
as used in this Lease includes the Tenant named above as well as its heirs, successors and assigns, each of which shall be under the same obligations,
liabilities and disabilities and each of which shall have the same rights, privileges and powers as it would have possessed had it originally signed this Lease as Tenant. Each and every person named
above as Tenant shall be bound formally and severally by the terms, covenants and agreements contained herein. However, no such rights, privileges or powers shall inure to the benefit of any assignee
of Tenant, immediate or remote, unless the assignment to such assignee is permitted or has been approved in writing by Landlord. No principal of Tenant nor any owner of the Tenant, whether disclosed
or undisclosed, shall have any personal liability with respect to any of the provisions of this Lease. Any notice required or permitted by the terms of this Lease may be given by or to any one of the
persons named above as Tenant, and shall have the same force and effect as if given by or to all of them. 

        d)    "Mortgage"
and "Mortgagee" as used in this Lease includes any lien or encumbrance on the Premises, the Building or the Property or on any part of or interest in or
appurtenance to any of the foregoing, including without limitation any ground rent or ground lease if Landlord's interest is or becomes a leasehold estate. The word "mortgagee" is used herein to
include the holder of any mortgage, including any ground Landlord if Landlord's interest is or becomes a leasehold estate. Wherever any right is given to a mortgagee, that right may be exercised on
behalf of such mortgagee by any representative or servicing agent of such mortgagee. 

        e)    "Person"
as used in this Lease includes a natural person, a partnership, a corporation, an association, and any other form of business association or entity. 

        f)     "Rent"
or "rent" as used in this Lease shall mean all Fixed Basic Rent and Additional Rent and any other rent or other sums due under this Lease reserved under this
Lease. 

32

 

        45.   Communication Equipment. Subject to any other rights of other tenants of the Building pursuant to leases executed prior
to the date hereof, Tenant shall also have the right without charge to install and use and operate satellite and/or antennae and communications equipment necessary or reasonably desirable to Tenant on
the roof of the Building in an area not greater than thirty-six (36) square feet (collectively, the "Equipment"), including the right to interconnect the Equipment with Tenant's
other equipment located in the Premises, in a mutually agreeable location on the roof of the Building as shown on Exhibit J which installation may penetrate the roof membrane provided Tenant
complies with the terms of Landlord's roof warranty, if any. Tenant shall be solely responsible for the costs of installation, operation, and maintenance of the Equipment. Tenant will install and
operate the Equipment in accordance with all federal, state and local regulations. If Tenant decides to install a microwave satellite dish and/or antennae, Landlord hereby permits Tenant to install
wires, conduits and appurtenant facilities upon the Premises or Common Facilities, at Tenant's sole cost and expense. In addition, Tenant shall be responsible for obtaining any consents, permits and
licenses required to install and operate the Equipment, and Landlord agrees to cooperate with Tenant to accomplish the same. Notwithstanding the foregoing and subject to Tenant's prior approval (not
to be unreasonably withheld, conditioned or delayed), Landlord shall also be permitted to place Equipment on the roof of the Building for its use and for the use of others, provided such Equipment
does not interfere with that of the Tenant. 

[REMAINDER
OF PAGE INTENTIONALLY BLANK] 

33

 

        SECTION
29(b) HEREOF SETS FORTH A WARRANT OR AUTHORITY FOR AS ATTORNEY TO CONFESS JUDGMENT AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST TENANT, TENANT
HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, AND (ON THE ADVICE OF THE SEPARATE COUNSEL OF TENANT, IF TENANT HAS USED COUNSEL IN REGARD TO ENTERING INTO THIS LEASE) UNCONDITIONALLY WAIVES ANY AND
ALL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA. 

        IN WITNESS WHEREOF, and in consideration of the mutual entry into this Lease and for other good and valuable consideration, and intending
to be legally bound, each party hereto has caused this agreement to be duly executed under seal. 

	Landlord:	 	 	 	 
	Date Signed: JUNE 3, 2003	 	WASHINGTON STREET ASSOCIATES II, L.P. By: Washington Street
	 	 	Associates II Acquisition corporation
	 	 	By:	 	/s/  RICHARD HEANY      

	 	 	Name: RICHARD HEANY
	 	 	Title: Vice President
	 	 	Attest: Theresa Miller
	

Tenant:	
 	

 	
 	

 
	Date Signed: MAY 30, 2003	 	CARDIONET, INC.
	 	 	By:	 	/s/  ROBERT J. KRIST      

	 	 	Name: ROBERT J. KRIST
	 	 	Title: Chief Financial Officer
	 	 	Attest:

34

 
 

RIDER A    
    

        RENEWAL OPTION:    Tenant is hereby granted two (2) options to renew this Lease upon the following terms and conditions: 

        At
the time of the exercise of the option to renew and at the time of the said renewal, the Tenant shall not be in default, beyond applicable notice and cure periods, in accordance with
the terms and provisions of this Lease. 

        Notice
of the exercise of the option shall be sent to the Landlord in writing at least six (6) months but not more than twelve (12) months before the expiration of the
Term. 

        The
renewal terms shall be for a period of five (5) years, to commence at the expiration of the Term, and all of the terms and conditions of this Lease, other than the Fixed Basic
Rent, shall apply during any such renewal term. 

        The
annual Fixed Basic Rent to be paid during the renewal term shall be the greater of the then escalated rate of Fixed Basic Rent or 95% of the fair rental value per square foot at the
commencement of the renewal term. In determining the fair rental value, the Landlord shall notify Tenant of the fair rental value as established by Landlord. Landlord shall provide this determination
promptly upon Tenant's request, even if Tenant has not then exercised an option to renew hereunder. Should Tenant dispute Landlord's determination but elect to exercise its option to renew hereunder,
then the Tenant shall be free to, at the Tenant's sole cost and expense, employ the services of an appraiser familiar with office buildings located within the Suburban Philadelphia Conshohocken Office
market area comparable to the Building, who shall be a member of MAI and who shall render an appraisal whereupon Landlord, at its sole cost and expense shall also appoint a similarly qualified
appraiser. If the two appraiser's determinations are within ten percent (10%) (as such variance is measured from the larger number) of each other, then the fair rental value shall be the average of
the two. If the two determinations are not within ten percent (10%) of each other then the two appraisers shall appoint an independent appraiser acceptable to both (failing which, either Landlord or
Tenant may request the American Arbitration Association to appoint such independent appraiser who shall be a member of MAI familiar with office buildings in the area of the Building) who shall render
an appraisal. In such event the determination of the third appraiser shall be final and binding upon the parties. The parties shall share equally in the cost of the third appraiser. Pending resolution
of the issue of fair rental value, the Tenant shall pay the Landlord as of commencement of the renewal term, the Fixed Basic Rent as established by Landlord, subject to retroactive adjustment upon
final determination of this issue. 

 
 

RIDER B
  
    Tenant's Right of First Offer.    
    

        Tenant shall have a right of first offer ("Right of Offer") to lease any additional space located on the third level of the Building which becomes available
during the Term ("Additional Space") subject to the rights of any other tenants of the Building in effect as of the date hereof pursuant to leases executed prior to the date hereof. If the Additional
Space has not been previously occupied by any tenant, Landlord shall be required to provide Tenant with notice of the availability of such space before offering to lease such space to any third party.
In the event such Additional Space becomes available during the Term after having been occupied by another Tenant, Landlord shall provide notice ("Notice of Availability") to Tenant that such
Additional Space is available and the terms upon which Landlord is willing to lease such space to Tenant and Tenant shall have ten (10) business days in order to notify Landlord that it elects
to exercise its rights hereunder and expand the Premises to include the Additional Space. If Tenant elects not to expand into such Additional Space or fails to accept or reject such Additional Space
within the ten (10) business day period, then Landlord may proceed to lease such space to any third party on the terms stated in the Notice of Availability, except that Landlord may lease the
Additional Space at a rental rate which is ninety two and one-half percent (92.5%) of the rate stated in the Notice of Availability. Except as aforesaid, if Landlord desires to lease the
Additional Space on terms different than those stated in the Notice of Availability, or if more than six (6) months have passed since Landlord delivered to Tenant the Notice of Availability
without the Additional Space being leased to a third party, Landlord shall first re-offer the Additional Space to Tenant in accordance with the terms of this Rider B. If Tenant does not
exercise its right to lease the Additional Space and Landlord leases the Additional Space specified in the Notice of Availability to a third-party tenant, then Tenant's right of first offer with
respect to said Additional Space specified in the Notice of Availability shall lapse on that occasion but shall be effective again if the Additional Space again becomes available for leasing later in
the Term. All of the terms and conditions of this Lease will apply to any Additional Space leased by Tenant, except as otherwise provided in the Landlord's Notice of Availability. If there is less
than five (5) years remaining in the Term when Tenant exercises its right to lease the Additional Space, then effective upon the date on which the Additional Space is added to the original
Premises, the Term of this Lease with respect to the original Premises shall automatically be extended to be coterminous with the term of the Additional Space (but not to exceed a total of five years
when combined with the then-remaining Term) and the Fixed Basic Rent schedule shall be modified such that the annual Fixed Basic Rent increases applicable to the original Premises shall
continue to increase by two percent (2%) per annum. In any case, if Tenant accepts the Additional Space, the Additional Space shall be added to the Premises by amendment to this Lease which shall
include the amendments provided above. If there is more than five (5) years remaining on the Term when Tenant receives the Notice of Availability, Tenant shall have the right to exercise its
right to Lease the Additional Space stated therein for only the balance of the Term of the Lease, notwithstanding the term stated in the Notice of Availability, with an equitable adjustment to the
economic terms for such space as mutually agreed upon by Landlord and Tenant. Landlord will have no liability to Tenant if any tenant of the Additional Space wrongfully holds over. In the event such
tenant wrongfully holds over, Landlord will attempt in good faith to cause such tenant to vacate the Additional Space. 

[MAP] 

[MAP] 

[MAP] 

  

 
 

EXHIBIT B
  
    LEGAL DESCRIPTION OF PROPERTY    
    

        All that certain property known as Unit B as defined in that certain Declaration of Condominium of Millennium Condominium dated October 18, 2000 and
recorded October 20, 2000 in the Montgomery County Recorder of Deeds at Deed Book 335 page 2384 et. seq. 

B-1

  

 
 

EXHIBIT C
  
    BUILDING MEASUREMENT    
    

C-1

 

SPACE

MANAGEMENT

SYSTEMTM  

TENANT AREA CALCULATION WORKSHEET  

	 	Building Owner (Client):	 	Washington Street Associates #2 L.P.
	 	 
	 	Building:	 	Millennium Three
	 	 
	 	Tenant:	 	Cardio Net
	 	 
	 	Floor:	 	Second Floor
	 	 

	

Space Planner:	
 	

NMC/SDI	
 	

Drawing:	
 	

SK3/03	
 	

Dated:	
 	

05/19/03

	 	
 Premises Usable Area:	
 	

13,558
	
 	

SF	
 	

 
	 	Additional Flexible Area:	 	155
	 	SF	 	 
	 	Total Tenant Usable Area:	 	13,713
	 	SF	 	 
	 	
 Floor Factor Multiplier:    x	
 	

1.23058
	
 	

 	
 	

 
	 	Total Tenant Rentable Area:	 	16,875
	 	SF	 	 
	 	
 Total Building Rentable Area:	
 	

70,811
	
 	

SF	
 	

 
	 	Proportion of Building:	 	0.23831
	 	 	 	 

	 	
 Requested By:	
 	

D. Wolfington/O'Neill Properties
	
 	

Prepared By:	
 	

Kellie Metzger

	 	Distribution:	 	D. Wolfington/O'Neill Properties
	 	Checked By:	 	Ken Bowser

	 	 	J. Mascaro/O'Neill Properties
	 	Date Issued:	 	5/20/2003

	 	 	J. Panaccio/O'Neill Properties
	 	Project No.:	 	03369-050

	 	 	T. Miller/O'Neill Properties
	 	Disk Label:	 	MHThree41TCFL02.DWG

        The
above SMS Tenant Area Calculations are Prepared by Space Design Incorporated are based on the above referenced Space Plan and established formula and method as described in the
master Bluebook for this building. We request that you review these calculations along with the attached tenant demising plan and notify us immediately if you do not concur. Upon the incorporation of
Leasing Documentation, please return an executed copy of this form for our use in maintaining the accuracy of our record. 

	    
 Client Signature	 	  

Architects:

Planners

Interior Designers	 	  

[graphic]
	

    
 Date Lease Signed	
 	

 

210 West Washington Square

Philadelphia, Pennsylvania 19106 9711

215 592 7070        Fax 215 592 9527

E-mail [illegible]@spacedesign.net	
 	

 

®
1979 Space Design Incorporated. 

C-2

   EXHIBIT D  

WORK
LETTER

ATTACHED TO AND MADE PART OF

OFFICE LEASE BETWEEN WASHINGTON STREET ASSOCIATES II, L.P., AS LANDLORD,

AND CARDIONET, INC. AS TENANT 

        As
material inducement to Tenant to enter into the Lease, and in consideration of the covenants herein contained, Landlord and Tenant, intending to be legally bound, agree as follows: 

        1.    Lease: Defined Terms.    The Lease is hereby incorporated by reference to the extent that the provisions of this
Work Letter apply thereto. Terms not otherwise defined in this Work Letter shall have the meanings given to them in the Lease. The Base Building Work and the Premises Work, as those terms are defined
below, are sometimes collectively referred to herein and in the Lease as "Landlord's Work." 

        2.    Base Building Work.    

        (a)   Landlord
shall perform, or cause to be performed, the Base Building Work (as defined in paragraph 2(c) below). Landlord will commence such work promptly and shall
diligently and continuously pursue the same to completion. 

        (b)   Landlord
shall perform, or cause to be performed, the Base Building Work at its sole cost and expense. 

        (c)   "Base
Building Work" shall mean all labor, materials, and expertise necessary for the design and construction of the work as specified on Schedule 1 attached
hereto which work shall be subject to substitution of materials at Landlord's discretion. 

        3.    Premises Work.    In addition to performing the Base Building Work, Landlord shall provide all labor, materials,
and expertise necessary for the improvement of the Premises (the "Premises Work") in accordance with the space plan and specifications prepared by Space Design, Incorporated (the "Architect") last
revised May 19, 2003 (attached hereto as Schedule 3) which shall provide improvements consistent with the schedule of finishes and upgrades as set forth on Schedule 2. Following
execution of this Lease, Landlord shall cause to be prepared such mechanical plans, electrical plans, fire protection plans, plumbing plans and structural plans as are required for the Premises Work
(together, the "Mechanical Plans") (such architectural plans and specifications and related Mechanical Plans are together referred to as the "Premises Plans"). 

        4.    Schedule; Contract; Construction.    

        (a)   As
soon as practicable after execution of this Lease, Landlord shall enter into a construction contract with a contractor (the "Construction Contract") for the
performance of Premises Work. The total cost of the Premises Work shall include the cost of the Premises Plans, permit and inspection fees relating to the Premises Work, the cost of the Construction
Contract and an overhead, general conditions and administration fee equal to five percent (5%) of the Premises Work Costs (collectively, the "Premises Work Costs"). 

        (b)   Landlord
reserves the right: (i) to make substitutions of material of equivalent grade, quality and usefulness when and if any specified material shall not be
readily and reasonably available, and (ii) to make reasonable changes necessitated by conditions met in the course of construction which shall not substantially deviate from the intended
results of the Premises Plans; provided in either case that Tenant's consent is first obtained, which consent shall not be unreasonably withheld and shall be given or denied promptly so as not to
unreasonably delay construction. The cost of any such changes shall be borne solely by Landlord. 

D-1

 

        (c)   Landlord
shall perform, or cause to be performed, Landlord's Work in accordance with the Premises Plans such that same is Substantially Completed (as defined below) on
or before the Target Date. The Premises shall be deemed substantially completed ("Substantially Completed" or "Substantially Complete") when Tenant is in receipt of a Certificate of Occupancy or
Temporary Certificate of Occupancy (punchlist items excepted). The period of time for Landlord to Substantially Complete the Premises shall be extended for additional periods of time equal to the time
lost by Landlord or Landlord's contractors, subcontractors or suppliers due to strikes or other labor troubles; delays in Tenant's selection of materials, plans or specifications or changes thereto;
Tenant Delay (as defined below); governmental restrictions and limitations; unavailability or delays in obtaining fuel, labor or materials; war or other national emergency; accidents; floods;
defective materials; fire damage or other casualties; adverse weather conditions; the inability to obtain building or use and occupancy permits; or any cause similar or dissimilar to the foregoing
which is beyond the reasonable control of Landlord or Landlord's contractors, subcontractors or suppliers. 

        (d)   Except
as permitted by paragraph 4(b) above, changes in the Premises Work may be accomplished only by a Change Order (defined below). Tenant shall have the right
to require changes in the Premises Work by making a written demand to Landlord describing the required change, but Landlord shall not perform any requested change unless a Change Order is issued with
respect thereto. As used in this Work Letter, a "Change Order" shall mean a written instrument prepared by Landlord and signed by Landlord and the Tenant stating their agreement upon all of the
following: (i) the change in the Premises Work; (ii) the extent of the adjustment in the Premises Work Cost; and (iii) the extent of the adjustment in the Target Date, if any.
Landlord shall act reasonably and diligently in preparing a Change Order following its receipt of Tenant's demand therefor. Changes in the Premises Work Cost due to a Change Order shall be limited to
(x) the actual net increase in the costs included in the definition of "Premises Work Costs," including a five percent (5%) overhead, general conditions and administration fee on the amount of
such increased costs, if any, but without any further mark-up by Landlord, plus (y) if the Change Order results in an extension of the Target Date, a sum equal to the per diem Fixed
Basic Rent that would have otherwise been paid by Tenant for the period by which the Commencement Date is delayed due to such Change Order, as agreed by Landlord and Tenant in such Change Order. The
cost of any changes of the Premises Work including changes necessary to the Building to construct the Premises Work (other than Change Orders initiated by Tenant) shall be the sole responsibility of
the Landlord. 

        (e)   Three
(3) business days prior to the date when Landlord anticipates the Premises Work will be Substantially Completed, Landlord and Tenant shall inspect the
Building and the Premises. Landlord shall provide to Tenant notice no less than seven (7) days prior to the date it believes the Premises Work will be Substantially Completed a notice to such
effect. Upon completion of the inspection, unless Tenant shall notify Landlord in writing regarding any observed deficiencies in the Premises Work that go beyond punch list items, which notice shall
be delivered to Landlord, if at all, within three (3) business days next following Tenant's inspection, it shall be presumed that the Premises Work is Substantially Completed, except for punch
list items. Within three (3) business days after the Premises Work is Substantially Completed, and again six (6) months following the Commencement Date, Landlord and Tenant shall inspect
the Building and Premises, and Tenant shall create a punch list of minor finishing and adjustment which Landlord has not completed substantially in accordance with the Premises Plans or which needs to
be repaired. Landlord agrees to complete the items set forth on the applicable punch lists within sixty (60) days of receipt of such list. Failure to include an item on the punch list will not
diminish the responsibility of Landlord to complete all Premises Work in accordance with the Premises Plans. Any dispute as to whether a particular item constitutes a punchlist item shall be resolved
by the reasonable determination of Landlord's Architect. 

D-2

 

        5.    Tenant Cost.    Tenant shall be responsible for all net cost increases related to any Change Order, the costs of
any Tenant's Work (as defined in paragraph 7), data and telecommunication cabling, Tenant's furniture, fixtures (not to include standard lighting) and equipment and to any expenses incidental
to Tenant's relocation to or occupancy of the Premises. 

        6.    Tenant Delay.    As used in this Work Letter, the term "Tenant Delay" shall mean any: 

        (a)   delays
resulting from a Change Order (not to exceed the amount of time agreed to pursuant to Paragraph 4(d) for the extension of the Target Date); 

        (b)   delays,
not caused by Landlord, in furnishing materials or procuring labor for completion of the Premises Work with respect to improvements which are not customarily
provided by Landlord for office tenants in the Building; or 

        (c)   delays
caused by Tenant Work (as defined in paragraph 7 below) interfering with the progress of Landlord's Work. 

        7.    Tenant Work.    Tenant shall have access to the Building and the Premises during normal working hours fifteen
(15) days prior to the date of substantial completion for the purpose of (i) installing voice and data cabling, (ii) installing furniture, fixtures and equipment within the
Premises and (iii) performing other work approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed (collectively, "Tenant Work"); provided, however, that
in connection with the performance of Tenant Work, Tenant shall use reasonable efforts to avoid interfering with or delaying the completion of Landlord's Work. Tenant Work shall be subject to the
reasonable coordination of Landlord and Tenant's Architect. 

        8.    Work Standards.    

        (a)   Landlord
shall cause Landlord's Work to be done in a good and workmanlike manner in conformity with the Premises Plans and all applicable federal, state and local laws,
ordinances and building and zoning codes, and requirements of public authorities and insurance underwriters. Landlord shall cause Landlord's Work to be carried forward expeditiously and with adequate
work forces so as to achieve Substantial Completion of the Premises on or before the Target Date (as defined in the Lease). Landlord shall secure and pay for the building permit and all other permits
and fees, licenses, and inspections necessary for the proper execution and completion of the Base Building Work. Landlord shall comply with and give all notices required by all applicable federal,
state and local laws, ordinances and building codes, and requirements of public authorities and insurance underwriters. Landlord shall be responsible for initiating, maintaining, and supervising all
safety precautions and programs in connection with performance of Landlord's Work. Landlord shall be responsible for the removal of all debris within and adjacent to the Premises, except debris
created by Tenant's Work. Landlord shall obtain all customary warranties available from contractors and manufacturers in connection with Landlord's Work. Landlord shall enforce all warranties from
contractors and manufacturers on behalf of Landlord and Tenant to the extent such warranties are not solely in favor of Tenant. Landlord, without cost to Tenant, shall promptly repair, replace,
restore, or rebuild any work included in Landlord's Work that Landlord has been given notice (during the one (1) year period following the Commencement Date) contains defects in material or
workmanship, or to which damage has occurred because of such defects. Notwithstanding the foregoing, Landlord shall, without cost to Tenant,
promptly repair, replace, restore, or rebuild any work included in Landlord's Work that Landlord has been given notice contains latent defects in material or workmanship, or to which damage has
occurred because of latent defects in material or workmanship. 

        (b)   Tenant
shall cause the Tenant Work to be done in a good and workmanlike manner in conformity with all applicable federal, state and local laws, ordinances and building
codes, and requirements of public authorities and insurance underwriters. Tenant shall secure and pay for all 

D-3

 

permits
and fees, licenses, and inspections necessary for the proper execution and completion of the Tenant Work. Tenant shall comply with and give all notices required by all applicable federal,
state and local laws, ordinances and building codes, and requirements of public authorities and insurance underwriters. Tenant shall be responsible for initiating, maintaining, and supervising all
safety precautions and programs in connection with performance of the Tenant Work. Tenant shall procure insurance of the types and coverage amounts required pursuant to the Lease or as otherwise may
be appropriate given the nature and extent of Tenant's Work. Tenant shall be responsible for the removal of all debris within and adjacent to the Premises created by Tenant's Work. 

D-4

 
SCHEDULE 1  

BASE BUILDING CORE AND SHELL SPECIFICATIONS

MILLENNIUM III  

1.     GENERAL  

The
project consists of a new Class A building with two office levels and a level of parking below. The core and shell, all site work, landscaping and underground utilities, will be provided
for a complete development package. By definition, the shell building shall include completed vertical transportation, toilet and mechanical rooms, a public lobby and core areas. 

2.     EXTERIOR SKIN  

	A.
	The
office building skin shall be a combination of brick veneer; precast accent panels and aluminum framed insulated glass windows.

	B.
	The
building envelope shall be thermally insulated to provide external wall system components with a minimum R-value of R-11. The overall building envelope will
meet the performance requirements of ASHRAE Standard 1980 "Energy Conservation in New Building Design".

	C.
	The
building glass shall be shall be one inch insulated, tinted glass. 

3.     ROOF  

	A.
	The
roof will be an EPDM roof on the flat portion and an asphalt architectural roof shingle on the sloped roof.

	B.
	The
roof system components will provide a minimum R-value of R-l 2.5. 

4.     INTERIOR PUBLIC AREAS / CORE SERVICES  

	A.
	Main
Lobby: The components are painted gypsum board ceiling, ceramic tile floor, vinyl wall covering, stone accent panels and stone baseboard.

	B.
	Upper
Floor Lobbies: The components are painted gypsum board ceiling, vinyl covering on walls, carpeted floors and wood base.

	C:
	Restrooms:
The components are 2' × 2' × 5/8" tegular acoustical ceiling, tile floors, tile at wet walls, vinyl wall
covering at other walls with tile base. Stone counter tops and ceiling mounted aluminum toilet partitions are to be provided, as well as recessed and semi-recessed toilet accessories and
full width unframed mirrors. Men and women's restrooms shall be provided on each floor in a size and configuration to serve the occupants. Fixture counts will be based on the code required minimums
with upgraded capacity to accommodate the actual occupancy of the building.

	D.
	Perimeter
Walls: The interior faces of exterior wall shall be metal studs with insulation installed with the vapor barrier unit. Gypsum board to be provided by Tenant at Tenant's sole
cost.

	E.
	Core
Area Partitions: The interior core area partitions shall be constructed from floor to underside of deck above of minimum 5/8" gypsum wallboard attached to each side
of 35/8" wide 25 gauge metal studs located at 16" on center (similar for fire rated and/or shaft wall).

	F.
	Exterior
Doors: Exterior Doors shall be medium stile aluminum and glass to match window system. Special provisions will be made to entry door systems to accommodate card access
activated electronic hardware. 

D-5

 

	G.
	Elevators:
Elevators shall be provided for passenger use. The elevators shall have a 2500 lb. capacity. Door and frame finishes are to be brushed stainless steel. Cab finishes will be
stainless steel with plastic laminate, ornamental metal 9' ceilings, upgraded hall and car control components and shall be ADA compliant. 

5.     STRUCTURAL  

	A.
	The
building shall be constructed of structural steel with composite metal deck and concrete floors. The foundation systems will be appropriate to the site specific subsurface
conditions.

	B.
	The
floors shall be designed to accommodate a maximum 100 lb. live load.

	C.
	The
floor-to-floor height of the office building shall be such to accommodate a minimum clear ceiling height of 9'-0". 

6.     HEATING, VENTILATING AND AIR CONDITIONING  

HVAC
Design Criteria 

	A.
	The
HVAC system shall be designed based on the following criteria:

	1.
	Outdoor
design conditions: 

a.    Summer
93°F DB and 75°F WB 

b.    Winter
0 F DB 

	2.
	Indoor
design conditions: 

Office
Space: 75°F DB 50% RH—Summer—Occupied at 1 person per 250 RSF 

70°F
DB 35% RH—Winter—Occupied at 1 person per 250 RSF. 

	3.
	Ventilation
Requirements: (Per ASHRAE 62-1989). Restrooms will be provided with 1 CFM per square foot exhaust and supply by air and infiltration.

	B.
	HVAC
system for typical core areas 

The
HVAC system shall have approximately 16 tons of split system units for heating and cooling. System shall serve approximately 325 SF per ton and be equipped with outside air duct intakes. 

7.     ELECTRICAL SYSTEMS  

	A.
	The
entire electrical distribution system shall comply with the National Electrical Code and any applicable local codes. The building is equipped with a minimum of 1500 KVA 2500 amp
service fed by electric utility company feeds with a house panel on each floor. Dual power is provided from the utility company.

	B.
	Emergency
System 

The
building shall have a battery pack system or generator for life safety system; for night lights, exit lights and emergency lights. 

	C.
	Fire
Alarm System 

The building will be equipped with a Class A multiplexed, electrically supervised system with smoke detection in all common areas and HVAC equipment tied into audible
and visual alarms. The system will comply with BOCA and ADA requirements.  

D-6

 

8.     PLUMBING  

	A.
	All
work shall conform to the latest BOCA National Plumbing Code and local authorities having jurisdiction.

	B.
	Hot
water heaters shall provide hot water at 100-105° F for general usage.

	C.
	All
plumbing fixtures shall be vitreous china, commercial quality. Water closets and urinals shall be flush valve type, siphon jet, wall hung. Lavatories shall be integral bowl,
furnished with Corian vanity tops. All lavatories trim shall meet ADA requirements. 

9.     FIRE PROTECTION  

	A.
	Design
Criteria 

The
building will be equipped with a fully automated water source fire suppression system in accordance with the following: 

	1.
	NFPA
13 (1993)—Installation of Sprinkler Systems.

	2.
	BOCA
Building Code.

	3.
	Local
Fire Marshall.

	B.
	Automatic
sprinklers shall be hydraulically designed for light, ordinary hazard in office areas, mechanical rooms and storage areas. Sprinklers shall be the following:

	1.
	Non
Public Spaces: pendant sprinklers with heads turned up.

	2.
	General
Public Area: chrome semi-recessed pendant sprinklers.

	C.
	Landlord
shall be responsible for the complete installation to code for an unfinished, vacant space with main loop sprinkler heads turned up. Tenant shall be responsible, at its sole
cost and expense, for pipe branches, heads turned down and additional heads to accommodate Tenant's floor plan. 

10.   LANDSCAPING  

Landscaping
includes new site landscaping treatment including shrubs, trees and extensive flowerbeds at entranceways. 

11.   MISCELLANEOUS  

	A.
	The
entire building will be in accordance with the Americans with Disabilities Act (ADA).

	B.
	The
building has fiber optic to the main d-mark room. Tenant to extend the fiber optic to their space at Tenant's cost. 

D-7

 

SCHEDULE 2  

MINIMUM STANDARD TENANT IMPROVEMENTS

235 Washington Street

Millennium II-IV

Conshohocken, PA 19428  

General Requirements:  

        All architectural and engineering designs shall confirm to the requirements of the ADA. All new construction and future renovations shall comply with the ADA. 

        All
new construction and future renovations shall be designed and built in full compliance with all local regulations, local zoning ordinances and state building codes. The contractor
shall obtain and pay for all applicable permits, including building and occupancy permits. 

        The
information provided herein, and the manufacturers listed, are intended to provide for the minimum quality standard of construction. Substitutions will be entertained but must be
approved, in writing by the landlord prior to their installation. 

General Conditions:  

A.    Partitions  

        All partitions will be sheet rocked, taped, spackled and sanded. Wall finishes shall be included in tenant scope of work. 

        1.    Type 1—Tenant Partition at Public Corridor- 1 Hour rated    

        Walls
to be constructed of 35/8" wide, 25 gauge steel studs at 16" on center with one layer of 5/8" TYPE X gypsum wallboard each side with fiberglas batt
insulation full height. Wallboard finish to be fire taped and sealed. Height of partition to underside of structure above. 

        2.    Type 2—Tenant Demising Partition    

        Same
as Type 1. 

        3.    Type 3—Building Standard Interior Partition    

        Walls
to be constructed of 35/8" wide, 25-gauge steel studs at 16" on center with one layer of 5/8" gypsum wallboard each side, height to
underside of acoustical tile ceiling (or match existing height). Gypsum wallboard detail at ceiling to be double row foam tape at top runner with continuous metal casing bead (USG# 200-B)
having spackled finish. 

        4.    Type 4—Building Standard Interior Partition—Extending Height    

        Same
as Type 3, except partition (studs and gypsum wallboard) shall penetrate acoustical tile ceiling, to a height of approximately six inches (6") above ceiling. 

        5.    Type 5—Building Standard Perimeter Wall    

        Same
as Type 3, except partition (studs and gypsum wallboard) shall extend to a height of approximately six inches (6") above window frame with fiberglas batt insulation full height. 

        6.    Type 6—Building Standard Column Enclosure    

        Same
as Type 3, except partition (studs and gypsum wallboard) shall extend to a height of approximately six inches (6") above ceiling. 

D-8

 

B.    Suspended Acoustical Ceilings  

        Shall be 24" × 24" slim line grid with 24" × 24" Tegular acoustical tiles. 

 Lighting  

        Three tube 2'x4' 277V fluorescent fixture with deep dish parabolic lens at an allowance of one fixture per (80) square feet of rentable area. 

C.    Doors, Frames, and Hardware  

        1.    General    

	 	Doors:	 	All doors to be solid core birch veneer with two coats stain and two coats clear, satin polyurethane or comparable paint coverage.
	 	Frames:	 	All frames to be Knock Down metal door frames with 2" face width.
	 	Hardware:	 	Satin chrome (or match existing) lever Schlage or comparable.
	 	Quantities:	 	Interior Doors shall be calculated at one (1) per 850 RSF.

        2.    Suite Entry—1 Hour Rated    

	 	Building Standard-Single Door:
	 	Shall be 3'-0"W × 8'-0"H × 13/4" solid core door
	 	Hardware:	 	Satin chrome (or match existing) lever Schlage or comparable.
	

 	
Building Standard-Double Door: 1 Hour Rated
	 	Same as single door above, except with a pair 3'-0" wide doors.
	 	Hardware:	 	Satin chrome (or match existing) lever Schlage or comparable.

        3.    Interior Tenant Doors—Not Rated    

	 	Building Standard-Single Door:
	

 	

Shall be 3'-0"W × 8'-0"H × 13/4" solid core door.
	 	Hardware:	 	Satin chrome (or match existing) lever Schlage or comparable.
	

 	
Building Standard-Double Door:
	 	Same as single door above, except with a pair 3'-0" wide doors.
	 	Hardware:	 	Satin chrome (or match existing) lever Schlage or comparable.

D.    Painting  

        1.    General    

Paint
products shall be as manufactured by Sherwin Williams or equal. 

        2.    Paint Finish Type A—Walls    

For
application to gypsum wallboard or plaster, shall be flat finish/latex base. 

Prime
Coat: Prep Rite 200 

Second
and Third Coat: Pro Mar 200 flat 

        3.    Paint Finish Type B—Door Frames    

For
application to metal door frames, shall be Sherwin Williams or equal, semi-gloss finish/alkyd base. 

Prime
Coat: All surface oil white 

D-9

 

Second
and Third Coats: Pro Mar semi-gloss or all surface enamel oil 

E.    Carpeting  

        All leased office floor area shall be one color glue down, 30 oz. Cut pile or 26 oz. Level loop carpet in color as selected by the Tenant from samples provided by
Landlord. 4" Vinyl Cove Base shall be installed at all vertical faces in selected color. 

 Electrical  

        Tenant sub-panel shall be 480/277V. Circuit breakers and panels are at tenant's sole cost and expense. 

	1.
	Provide
one outlet per each one hundred (100) SFRA in offices.

	2.
	Provide
one outlet per 30 linear feet of corridor wall

	3.
	Provide
one circuit per 2 workstations

	4.
	Provide
single pole wall switches in quantity of one per building standard door opening or not to exceed (1) per 400 Rentable Square Feet.

	(i)
	Sprinkler

        See base building core and shell specifications. Additional heads necessary to satisfy code and turning heads down are a tenant improvement cost, all heads to be
centered in acoustical ceiling tiles.

	(ii)
	Window
Treatments 

        Tenant
to provide the installation of 1" aluminum, horizontal miniblinds on all exterior windows to match building standard. Miniblinds shall be by Levlor, Graber, Bali or
Hunter-Douglas, color to be determined. 

	(iii)
	Signage

        See
base building core and shell specifications. 

	(iv)
	Fire
Extinguishers and Cabinets 

        Tenant
to provide fire extinguisher cabinets within tenant space, in quantity and location per code and local fire marshal. Cabinets shall be painted steel, as manufactured by Larson,
model 2409-RI with vertical duo or approved by Landlord in writing equal. Cabinet color to be white, cabinet to contain 5# ABC fire extinguisher. 

	(v)
	Fire
Alarm 

        Base
building shall have an addressable fire alarm system capable of expansion into tenant's demised space, see base building core and shell specifications. Tenant work shall include
installation of smoke detectors, voice evacuation speakers, audible and visual devices and additional pull stations as required by NFPA, ADA and local fire codes. Tenant to pay cost of connecting to
the building fire alarm panel by the building fire alarm vendor. 

	(vi)
	Voice
and Data 

        Tenant
shall coordinate and pay for the installation of all telephone/data wiring required within the demised premises. Work to be performed at time convenient with landlord's work. 

	(vii)
	HVAC 

        See
base building core and shell specifications. 

D-10

 

	(viii)
	Alternates

        See
tenant fit out plan. 

D-11

  

 
 

EXHIBIT E
  
    BUILDING HOLIDAYS    
    

*
NEW YEAR'S DAY * 

*
MEMORIAL DAY * 

*
INDEPENDENCE DAY * 

*
LABOR DAY * 

*
THANKSGIVING DAY * 

*
CHRISTMAS DAY * 

E-1

  

 
 

EXHIBIT F
  
    Janitorial Specifications    
    

Tenant Spaces:  

DAILY—Night
time coverage Monday through Friday. 

	1.
	Empty
waste receptacles, wipe clean and wash when necessary.

	2.
	Bag
and remove all waste from receptacles.

	3.
	Replace
trash liners as necessary.

	4.
	Empty
and damp wipe all ashtrays.

	5.
	Dust
mop all composition floor surfaces.

	6.
	Dust
ledges and other horizontal surfaces within 72" high including cabinets and telephones.

	7.
	Dust
horizontal surfaces of desks, chairs, tables and other office furniture.

	8.
	Dust
baseboards as necessary.

	9.
	Thoroughly
vacuum carpeted areas moving light furniture except desks, credenzas and file cabinets.

	10.
	Spot
clean minor carpet stains.

	11.
	Spot
clean marks next to light switches, doors and doorframes.

	12.
	Clean
all entrance door frames and glass.

	13.
	Clean,
polish and sanitize all drinking fountains. 

WEEKLY: 

	1.
	Spray
and buff composition floor surfaces.

	2.
	Dust
high partition ledges and moldings above 72".

	3.
	Damp
wipe all telephones using antiseptically treated cloths.

	4.
	Remove
all finger marks from doors, frames, wall partitions and light switches. 

MONTHLY: 

	1.
	Dust
Blinds.

	2.
	Polish
all desktops, conference room tables, credenzas—if tops are cleared. 

QUARTERLY: 

	1.
	Vacuum
upholstered furniture.

	2.
	Dust
air diffusers and vents. 

ANNUALLY: 

	1.
	Strip
and wax composition floor surfaces. 

REST ROOMS:  

DAILY—Night
time coverage Monday through Friday. 

F-1

 

	1.
	Sweep
and dust mop floor surfaces.

	2.
	Wet
mop floor surfaces with disinfectant.

	3.
	Dust
horizontal surfaces within reach.

	4.
	Empty
all waste and sanitary containers.

	5.
	Damp
wipe, clean and refill all dispensers of soap, paper products and feminine products.

	6.
	Clean
and polish all dispensers.

	7.
	Clean
and polish mirrors, frames.

	8.
	Clean,
disinfect and deodorize all lavatory fixtures (toilet seat on both sides).

	9.
	Clean
and polish metal fixtures.

	10.
	Remove
gum, tar and other foreign substances from floor surfaces.

	11.
	Report
all mechanical deficiencies, dripping faucets, stopped up soap dispensers and toilets to building manager. 

WEEKLY:

	1.
	Dust
and wipe clean all partitions, dispensers, and receptacles, tile walls and wallpapered walls in all lavatories and restrooms.

	2.
	Clean
and disinfect inside of waste and sanitary containers.

	3.
	Clean
and polish chrome fixtures under wash basins.

	4.
	Wipe
clean all shower walls, floors and doors. 

MONTHLY:

	1.
	Full
wash privacy partitions, doors, walls and tile walls and enamel surfaces.

	2.
	Machine
scrub all restroom floors.

	3.
	Do
all high dusting. 

QUARTERLY:

	1.
	Dust
diffusers and vents. 

ELEVATORS:  

DAILY—Night
time coverage Monday through Friday. 

	1.
	Vacuum
all carpeted floor surfaces.

	2.
	Dust
mop all composition floor surfaces.

	3.
	Wet
mop all composition floor surfaces.

	4.
	Spot
clean carpet stains.

	5.
	Clean
and vacuum elevator door tracks.

	6.
	Clean
and polish both sides of elevator doors.

	7.
	Clean
vertical surfaces.

	8.
	Dust
all horizontal surfaces. 

F-2

 
	9.
	Remove
gum, tar and other foreign substances from floors.

	10.
	Report
any problems, lights out, elevator between floors, etc., to the building manager. 

TWO
(2) TIMES PER WEEK: 

	1.
	Clean
and polish all metal work.

	2.
	Clean
and polish all woodwork. 

WEEKLY:

	1.
	Scrub
and refinish composition floor.

	2.
	Dust
ceiling fans, vents, and lights. 

MONTHLY: 

	1.
	Full
wash privacy partitions, doors, walls and tile walls and enamel surfaces.

	2.
	Machine
scrub all restroom floors.

	3.
	Do
all high dusting. 

QUARTERLY: 

	1.
	Dust
diffusers and vents. 

ELEVATORS:  

DAILY—Night
time coverage Monday through Friday. 

	1.
	Vacuum
all carpeted floor surfaces.

	2.
	Dust
mop all composition floor surfaces.

	3.
	Wet
mop all composition floor surfaces.

	4.
	Spot
clean carpet stains.

	5.
	Clean
and vacuum elevator door tracks.

	6.
	Clean
and polish both sides of elevator doors.

	7.
	Clean
vertical surfaces.

	8.
	Dust
all horizontal surfaces.

	9.
	Remove
gum, tar and other foreign substances from floors.

	10.
	Report
any problems, lights out, elevator between floors, etc., to the building manager. 

TWO
(2) TIMES PER WEEK: 

	1.
	Clean
and polish all metal work.

	2.
	Clean
and polish all woodwork. 

WEEKLY:

	1.
	Scrub
and refinish composition floor.

	2.
	Dust
ceiling fans, vents, and lights. 

F-3

 

MONTHLY:

	1.
	Shampoo
carpet floors—more frequently if necessary. 

STAIRWAYS:  

DAILY—Night
time coverage Monday through Friday. 

	1.
	Remove
all trash.

	2.
	Polish
stairs.

	3.
	Spot
mop spillage.

	4.
	Remove
gum, tar, and other foreign substances from floor. 

WEEKLY:

	1.
	Dust
horizontal surfaces within reach.

	2.
	Wet
mop stairs.

	3.
	Dust
handrails.

	4.
	Spot
clean floors.

	5.
	Sweep
and damp mop stairs. 

MONTHLY:

	1.
	Spot
clean wall surfaces within reach (under 72").

	2.
	Scrub
stairs and landings as necessary. 

LOBBY ENTRANCES AND HALLWAYS:  

DAILY—Night
time coverage Monday through Friday. 

	1.
	Empty
all waste containers and replace liners.

	2.
	Spot
clean exterior surfaces of waste containers.

	3.
	Empty
and clean all ashtrays and cigarette urns.

	4.
	Sanitize
and polish water fountains.

	5.
	Dust
all horizontal surfaces within reach (under 72").

	6.
	Vacuum
carpeted floor surfaces.

	7.
	Spot
clean minor carpet stains.

	8.
	Remove
gum, tar and other foreign substances from door.

	9.
	Clean
all glass areas.

	10.
	Clean
all metal surfaces.

	11.
	Spot
clean wall surfaces within reach (under 72").

	12.
	Clean
entrance glass, front and rear lobbies.

	13.
	Remove
all finger marks from chrome and glass—inside and out.

	14.
	Dust
all sills and trim. 

F-4

 
	15.
	Maintain
janitor closets in a neat and orderly conditions.

	16.
	Sweep;
dust granite or aggregate floors.

	17.
	Damp
mop all non-carpeted floors. 

WEEKLY:

	1.
	Buff
non-carpeted floors and base. 

MONTHLY: 

	1.
	Scrub
and re-coat floors where necessary. 

ANNUALLY:

	1.
	Strip
and re-coat floors where necessary. 

F-5

  

 
 

EXHIBIT G
  
    RULES AND REGULATIONS    
    

	1.
	OBSTRUCTION OF PASSAGEWAYS: The sidewalks, entrance, passages, courts, elevators, vestibules, stairways, corridors and public parts of
the Building shall not be obstructed or encumbered by Tenant or used by Tenant for any purpose other than ingress and egress. If the Premises are situated on the ground floor with direct access to the
street, then Landlord shall, at Landlord's expense, keep the sidewalks and curbs directly in front of the Premises clean and free from ice, snow and refuse.

	2.
	WINDOWS: Windows in the Premises shall not be covered or obstructed by Tenant. No bottles, parcels or other articles shall be placed on
the window sills, in the halls, or in any other part of the Building other than the Premises. No article shall be thrown out of the doors or windows of the Premises. In order to maintain a uniform
exterior appearance, window treatments shall be kept in a down position at all times.

	3.
	PROJECTIONS FROM BUILDING: No awnings, air-conditioning units, or other fixtures shall be attached to the outside walls or
the window sills of the Building or otherwise affixed so as to project from the Building, without prior written consent of Landlord.

	4.
	SIGNS: No sign or lettering shall be affixed by Tenant to any part of the outside of the Premises, or any part of the inside of the
Premises so as to be clearly visible from the outside of the Premises, without the prior written consent of Landlord. However, Tenant shall have the right to place its name on any door leading into
the Premises the size, color and style thereof to be subject to the Landlord's approval.

	5.
	FLOOR COVERING: Tenant shall not lay linoleum or other similar floor covering so that the same shall come in direct contact with the
floor of the Premises. If linoleum or other similar floor covering is desired to be used, an interlining of builder's deadening felt shall first be fixed to the floor by a paste or other material that
may easily be removed with water, the use of cement or other similar adhesive material being expressly prohibited.

	6.
	LOCKS: Tenant, before closing and leaving the Premises, shall ensure that all windows are closed and entrance doors locked.

	7.
	CONTRACTORS: No contract of any kind with any supplier of towels, water, toilet articles, waxing, rug shampooing, venetian blind
washing, furniture polishing, lamp servicing, cleaning of electrical fixtures, removal of waste paper, rubbish, garbage, or other like service shall be entered into by Tenant, nor shall any machine of
any kind be installed in the Building or the Premises without the prior written consent of the Landlord. Tenant shall not employ any persons other than Landlord's janitors for the purpose of cleaning
the Premises without prior written consent of Landlord. Landlord shall not be responsible to Tenant for any loss of property from the Premises however occurring, or for any damage to the effects of
Tenant by such janitors or any of its employees, or by any other person or any other cause.

	8.
	PROHIBITED ON PREMISES: Tenant shall not conduct, or permit any other person to conduct, any auction upon the Premises, manufacture or
store goods, wares or merchandise upon the Premises without the prior written approval of Landlord, except the storage of usual supplies and inventory to be used by Tenant in the conduct of his
business, permit the Premises to be used for gambling, make any unusual noises in the Building, permit to be played musical instrument on the Premises, permit any radio to be played, or television,
recorded or wired music in such loud manner as to disturb or annoy other tenants, or permit any unusual odors to be produced on the Premises. Tenant shall not permit any portion of the Premises to be
occupied as an office for a public stenographer or typewriter, or for the storage, manufacture, or sale of intoxicating 

G-1

 

beverages,
narcotics, tobacco in any form or as a barber or manicure shop. Canvassing, soliciting and peddling in the Building and the Premises are prohibited and Tenant shall cooperate to prevent the
same. No bicycles, vehicles or animals of any kind shall be brought into or kept in or about the Premises. 

	9.
	PLUMBING AND ELECTRIC FACILITIES: Plumbing facilities shall not be used for any purpose other than those for which they were
constructed; and no sweepings, rubbish, ashes, newspaper or other substances of any kind shall be thrown into them. Waste and excessive or unusual amounts of electricity or water is prohibited.

	10.
	MOVEMENT OF FURNITURE, FREIGHT OR BULKY MATTER: The carrying in or out of freight, furniture or bulky matter of any description must
take place during such hours as Landlord may from time to time reasonably determine and only after advance notice to the superintendent of the Building. The persons employed by Tenant for such work
must be reasonably acceptable to the Landlord. Tenant may, subject to these provisions, move freight, furniture, bulky matter, and other material into or out of the Premises on Saturdays between the
hours of 9:00 a.m. and 1:00 p.m., provided Tenant pays additional costs, if any, incurred by Landlord for elevator operators or security guards, and for any other expenses occasioned by
such activity of Tenant. If, at least three (3) days prior to such activity, Landlord requests that Tenant deposit with Landlord, as security of Tenant's obligations to pay such additional
costs, a sum of which Landlord reasonably estimates to be the amount of such additional cost, the Tenant shall deposit such sum with Landlord as security of such cost. There shall not be used in the
Building or Premises, either by Tenant or by others in the delivery or receipt of merchandise, any hand trucks except those equipped with rubber tires and side guards, and no hand trucks will be
allowed in the elevators without the consent of the superintendent of the Building.

	11.
	SAFES AND OTHER HEAVY EQUIPMENT: The Building is designed to normal building standards for floor-loading capacity. Tenant shall not use
the Premises in such ways which, in Landlord's judgment, exceed such load limits. Landlord reserves the right to prescribe the weight and position of all safes and other heavy equipment so as to
distribute properly the weight thereof and to prevent any unsafe condition from arising.

	12.
	ADVERTISING: Landlord shall have the right to prohibit any advertising by Tenant which in Landlord's reasonable opinion tends to impair
the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, Tenant shall refrain from or discontinue such advertising.

	13.
	AFTER HOURS USE: Landlord reserves the right to exclude from the Building between the hours of 6:00 p.m. and 8:00 a.m.
and at all hours on Saturdays, Sundays and Building Holidays, all persons who do not present a pass to the Building signed by the Tenant. Each Tenant shall be responsible for all persons for whom such
a pass is issued and shall be liable to the Landlord for the acts of such persons.

	14.
	PARKING: Tenant and its employees shall park their cars only in those portions of the parking area designated by Landlord. 

—END—

G-2

  

 
 

EXHIBIT E
  
    BUILDING HOLIDAYS    
    

        *
NEW YEAR'S DAY * 

        *
MEMORIAL DAY * 

        *
INDEPENDENCE DAY * 

        *
LABOR DAY * 

        *
THANKSGIVING DAY * 

        *
CHRISTMAS DAY * 

E-1

 
 

EXHIBIT "B"    
    

 
 

ADDITIONAL PREMISES
  [See Attached]    
    

  

 
 

EXHIBIT H
  
    CONFIRMATION OF LEASE TERM    
    

        THIS MEMORANDUM is made as of the            day
of                        , 2003,
between                        , a            , with an office
at                        
("Landlord") and            , a            , with its principal place of business
at                        ("Tenant"), who entered into a lease dated for reference purposes as
of                        ,
2003 (the "Lease"), covering certain premises located at                        . All capitalized terms, if not defined herein,
shall be defined as they are defined in the Lease. 

        1.     The
Parties to this Memorandum hereby agree that the date of                        , 2003 is the "Commencement Date" of the Term,
that the date                        , 2003 is the Rent
Commencement Date and the date                        is the expiration date of the Lease. 

        2.     Tenant
hereby confirms the following: 

        (a)   That
it has accepted possession of the Premises pursuant to the terms of the Lease; 

        (b)   That
the improvements, including the Landlord Work, required to be furnished according to the Lease by Landlord have been substantially completed except as follows:
                        ; 

        (c)   That
Landlord has fulfilled all of its duties of an inducement nature or are otherwise set forth in the Lease to the extent to be performed as of the date hereof except
reduced Fixed Basic Rent as per the Schedule set forth in Paragraph F of the Preamble; 

        (d)   To
Tenant's knowledge there is no claim for offsets or credits against rentals, and the $            Security Deposit has been paid as provided in the Lease; 

        (e)   To
Tenant's knowledge there is no default by Landlord or Tenant under the Lease and the Lease is in full force and effect. 

        (f)    The
total cost of tenant improvements, commissions and legal fees associated with this Lease incurred by Landlord
is                        , and such sum shall be used for
purposes of calculating the Lease termination fee payable pursuant to Section 4(b) of the Lease. 

        3.     This
Memorandum, each and all of the provisions hereof, shall inure to the benefit, or bind, as the case may require, the parties hereto, and their respective successors
and assigns, subject to the restrictions upon assignment and subletting contained in the Lease. 

Landlord:

	Date Signed:	 	 	 	 	 	 
	 	 	
	 	

	 	 	 	 	By:	 	

	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	 	 	 	 	Attest:	 	

Tenant:

	Date Signed:	 	 	 	 	 	 
	 	 	
	 	

	 	 	 	 	By:	 	

	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	 	 	 	 	Attest:	 	

I-1

MILLENNIUM THREE  

[MAP] 

EXHIBIT "C"

WORK LETTER  

WASHINGTON
STREET ASSOCIATES II, L.P., AS LANDLORD,

AND CARDIONET, INC., AS TENANT 

        As
material inducement to Tenant to enter into the Amendment, and in consideration of the covenants herein contained, Landlord and Tenant, intending to be legally bound, agree as
follows: 

        1.     Lease; Defined Terms. Terms not otherwise defined in this Work Letter shall have the meanings given to them in the Lease,
as modified by this Amendment. 

        2.     Premises Work. Landlord, at Landlord's sole cost and expense, shall provide all labor, materials, and expertise necessary
for the completion of Landlord's Additional Work in accordance with the space plan and specifications numbered TF-1 which were prepared by D2 Solutions (the "Architect") and were issued on
July 25, 2006 and are attached hereto as Schedule 1 (the "Premises Plans"). 

        3.     Schedule; Contract; Construction.

        (a)   The
following persons are hereby identified as the representatives of their respective parties. To the extent necessary or required pursuant to the terms of this Work
Letter, the parties shall contact the following personnel in connection with the completion of the Landlord's Additional Work hereunder: 

	On behalf of the Landlord:

Phone: 610.337.5563

Facsimile: 610.337.5599	 	Drew Wolfington
	

On behalf of the Tenant:

Phone: 610.729.7154

Facsimile:	
 	

Michael Forese

        (b)   As
soon as practicable after the date Tenant executes this Amendment, Landlord shall enter into a construction contract (the "Construction Contract") with a contractor
of its choice and otherwise reasonably acceptable to Tenant for the performance of Landlord's Additional Work. 

        (c)   Landlord
reserves the right, however: (i) to make substitutions of material of equivalent grade, quality and usefulness when and if any specified material shall
not be readily and reasonably available, and (ii) to make reasonable changes necessitated by conditions met in the course of construction which first became apparent following the execution of
this Amendment and which shall not substantially deviate from the intended results of the Premises Plans; provided in either case that Tenant's consent is first obtained, which consent shall not be
unreasonably withheld and shall be given or denied promptly so as not to unreasonably delay construction. 

        (d)   Landlord
shall perform, or cause to be performed, Landlord's Work in accordance with the Premises Plans such that same is Substantially Completed on or before the Target
Date. The Target Date shall be extended for additional periods of time equal to the number of days lost by Landlord or Landlord's contractors, subcontractors or suppliers due to strikes or other labor
troubles; delays in Tenant's selection of materials, plans or specifications or changes thereto; Tenant Delay (as defined below); governmental restrictions and limitations; unavailability or delays in
obtaining fuel, labor or materials; war or other national emergency; accidents; floods; defective materials; fire damage or other casualties; adverse weather conditions; the inability to obtain
building or use and occupancy permits; or any cause similar or dissimilar to the foregoing which is beyond the reasonable control of Landlord or Landlord's contractors, subcontractors or suppliers. 

        (e)   Except
as permitted by paragraph 3(c) above, changes in the Landlord's Additional Work may be accomplished only by a Change Order (defined below). Tenant shall
have the right to 

require
changes in the Landlord's Additional Work by making a written demand to Landlord describing the required change, but Landlord shall not perform any requested change unless a Change Order is
issued with respect thereto. As used in this Work Letter, a "Change Order" shall mean a written instrument prepared by Landlord and signed by Landlord and the Tenant stating their agreement upon all
of the following: (i) the change in the Landlord's Additional Work; (ii) the extent of any additional cost associated with such change; and (iii) the extent of the adjustment in
the Target Date, if any. Landlord shall act reasonably and diligently and prepare a Change Order within three (3) business days following its receipt of Tenant's demand therefore. Changes in
the Premises Work Cost due to a Change Order initiated by Tenant shall be limited to (x) the actual net increase in the costs included in the definition of "Premises Work Costs," plus
(y) if the Change Order results in an extension of the Target Date (only to the extent agreed as provided in subsection 3(e)(iii) above), a sum equal to the per diem Fixed Basic Rent
that would have otherwise been paid by Tenant for the period by which the Target Date is delayed due to such Change Order, as agreed by Landlord and Tenant in such Change Order. The Premises Work Cost
shall include, among other things, the Architect's fees. 

        (f)    Landlord
shall provide Tenant with written notice at least three (3) business days in advance as to the anticipated date of Substantial Completion, and upon
Tenant's receipt of such three (3) business day notice, Landlord and Tenant shall inspect the Building and the Premises. For purposes of the Lease and this Work Letter, Landlord's Additional
Work shall be "Substantially Complete or "Substantially Completed" upon the issuance of a temporary or permanent Certificate of Occupancy from the applicable governing authorities permitting Tenant's
use of the Premises for the Permitted Use. If Landlord obtains a temporary Certificate of Occupancy, Landlord will obtain a permanent Certificate of Occupancy prior to the expiration of the temporary
Certificate of Occupancy and deliver a copy of such permanent Certificate of Occupancy to Tenant. Upon completion of the inspection, unless Tenant shall notify Landlord in writing regarding any
observed deficiencies in the Landlord's Additional Work that go beyond punchlist items, which notice shall be delivered to Landlord, if at all, within three (3) business days following Tenant's
inspection, it shall be presumed that the Landlord's Additional Work is Substantially Completed, except for punchlist items and latent defects. Within three (3) business days after the
Landlord's Additional Work is Substantially Completed, Landlord and Tenant shall inspect the Building and Premises, and Tenant shall create a punchlist of minor finishing and adjustment which Landlord
has not completed substantially in accordance with the Premises Plans or which needs to be repaired. Landlord agrees to complete the items set forth on the punchlist within thirty (30) days of
receipt of such list. Failure to include an item on the punchlist will not diminish the responsibility of Landlord to complete all of Landlord's Additional Work in accordance with the Premises Plans.
Any dispute as to whether a particular item constitutes a punchlist item shall be resolved by the reasonable determination of the Architect. 

        4.     Landlord's Additional Work Costs. Landlord shall perform the Landlord's Additional Work at its sole cost and expense, but
Tenant shall be responsible for (i) all costs related to any Change Order, subject to Section 3(e) of this Work Letter and (ii) all costs of any Tenant's Work (as defined in
Section 6 below) and to any expenses incidental to Tenant's occupancy of the Premises. 

        5.     Tenant Delay. As used in this Work Letter, the term "Tenant Delay" shall mean any delays caused by Tenant's failure to
comply with the specific time periods established in this Work Letter. 

        6.     Tenant's Access to Additional Premises During Construction. On or prior to December 15, 2006, Tenant shall have
access to the Additional Premises during normal working hours and such other reasonable times for the purpose of (i) installing voice and data cabling, (ii) installing furniture,
fixtures and equipment within the Premises and (iii) performing other work approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed (collectively, "Tenant
Work"); provided, however, that in connection with the performance of Tenant Work, Tenant shall use reasonable efforts to avoid interfering with or delaying the completion of the Landlord's Additional
Work. Tenant Work shall be subject to the reasonable coordination of Landlord and the Architect. 

        7.     Work Standards.

        (a)   Landlord
shall cause the Landlord's Additional Work to be done in a good and workmanlike manner in conformity with the Premises Plans and all applicable federal, state
and local laws, ordinances and building and zoning codes, and requirements of public authorities and insurance underwriters. Landlord shall cause the Landlord's Additional Work to be carried forward
expeditiously and with adequate work forces so as to achieve Substantial Completion of Landlord's Additional Work on or before the Target Date. Landlord shall comply with and give all notices required
by all applicable federal, state and local laws, ordinances and building codes, and requirements of public authorities and insurance underwriters. Landlord shall be responsible for initiating,
maintaining, and supervising all safety precautions and programs in connection with performance of Landlord's Additional Work. Landlord shall be responsible for the removal of all debris within and
adjacent to the Premises, except debris created by Tenant's Work. Landlord shall obtain all customary warranties available from contractors and manufacturers in connection with the Landlord's
Additional Work. Landlord shall enforce all warranties from contractors and manufacturers on behalf of Landlord and Tenant to the extent such warranties are not solely in favor of Tenant. 

 
 

SCHEDULE 1
  
    PREMISES PLANS    
    

[TO
BE ATTACHED] 

[MAP] 

 
 

EXHIBIT D
  
    CONFIRMATION AGREEMENT    
    

        THIS CONFIRMATION AGREEMENT (this "Agreement") is made as of the            day
of                        , 2006, between WASHINGTON STREET ASSOCIATES II, L.P. with
an office at 2701 Renaissance Boulevard, Fourth Floor, King of Prussia, Pennsylvania 19406 ("Landlord") and CARDIONET, INC. with its principal place of business at Millennium III, 227
Washington Street, Conshohocken, Pennsylvania 19428 ("Tenant"), who entered into a certain lease dated May 30, 2003 and that certain Amendment to Office Space Lease
dated                        , 2006
(as amended, the "Lease"), covering certain premises located on the third floor at Millennium III, Conshohocken, Pennsylvania. All capitalized terms, if not defined herein, shall be defined as they
are defined in the Lease. 

        1.     The
Parties to this Agreement hereby agree that the date of                        , 200    is the "Target Date"
and December 31, 2013 is the Expiration Date of
the Lease. 

        2.     The
date on which Tenant shall commence paying Fixed Basic Rent for the Additional Premises is January 1, 2008 subject to the terms of the Lease. 

        3.     This
Agreement, each and all of the provisions hereof, shall inure to the benefit, or bind, as the case may require, the parties hereto, and their respective successors
and assigns, subject to the restrictions upon assignment and subletting contained in the Lease. 

[BALANCE
OF PAGE IS INTENTIONALLY BLANK] 

IN WITNESS WHEREOF, the Landlord and Tenant have executed this Confirmation of Term as of the day and year first above written.

	 	 	LANDLORD:
	

 	
 	

WASHINGTON STREET ASSOCIATES II, L.P.
	

 	
 	

 	

 
	 	 	By: Washington Street Associates II Acquisition Corporation
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

 

	 	 	TENANT:
	

 	
 	

CARDIONET, INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

 
 

EXHIBIT E
  
    PREMISES EXCLUDED FROM TENANT'S RIGHT OF FIRST OFFER    
    

[MAP] 

AMENDMENT TO OFFICE SPACE LEASE  

        This AMENDMENT TO OFFICE SPACE LEASE (this "Amendment") is made and entered into as of the 6th day of September, 2006 by and between Washington Street Associates
II, L.P., a Pennsylvania limited partnership ("Landlord") and CardioNet, Inc., a California corporation ("Tenant"). 

BACKGROUND  

        A.    Landlord
and Tenant entered into that certain Office Space Lease dated May 30, 2003 (the "Lease") whereby Tenant leased approximately 16,875 rentable square feet
of office space on the third (3rd) floor (the "Initial Premises") of the building known as Millennium III (the "Building") situated on that certain real property located at 227 Washington Street,
Conshohocken, Pennsylvania 19428 (the "Property"). A true and correct copy of the Lease is attached hereto as Exhibit A. Any capitalized terms
not defined in this Amendment shall have the meanings assigned to such terms in the Lease. 

        B.    The
parties are desirous of amending and modifying the Lease as provided herein, for the purpose of, inter alia,Tenant
leasing certain additional office space located on the third (3rd) floor of the Building, upon the terms, conditions and agreements set forth in this Amendment. 

        NOW,
THEREFORE, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, and intending to be
legally bound, the parties hereto agree as follows: 

        a.    Lease of Additional Premises.    The Lease is hereby amended to provide that Landlord hereby demises unto
Tenant, and Tenant hereby leases from Landlord, all that certain space containing approximately 17,784 rentable square feet of space on the third (3rd) floor (the "Additional Premises")
of the Building, as shown on Exhibit "B" and made a part hereof. The term of the Lease for the Additional Premises shall commence on January 1,
2007 (the "Additional Premises Commencement Date"). It is the mutual intention of Landlord and Tenant that the Additional Premises shall be leased to and occupied by Tenant on and subject to all of
the terms, covenants and conditions of the Lease, except as otherwise expressly provided to the contrary in this Amendment, and to that end, Landlord and Tenant hereby agree that from and after the
Additional Premises Commencement Date the word "Premises", as defined in the Lease, shall mean and include both the Initial Premises and the Additional Premises, containing a total of 34,659 rentable
square feet, unless the context otherwise requires. 

        b.    Permitted Use for Additional Premises.    The Permitted Use for the Additional Premises shall be general office
use and such other uses as permitted by the Lease. 

        c.    Landlord's Additional Work.    Landlord, at its sole cost and expense, shall improve, construct and do such
other work to the Initial Premises and the Additional Premises (the "Landlord's Additional Work") in accordance with the Work Letter attached hereto as Exhibit "C"  and made a part hereof. Landlord shall
use commercially reasonable efforts to Substantially Complete Landlord's Additional Work by December 15, 2006 (the "Target Date")
and, notwithstanding the foregoing, the Additional Premises shall be delivered to Tenant on or prior to December 15, 2006 in order for Tenant to perform the Tenant Work (as defined in the Work
Letter). If the Additional Premises are not Substantially Completed and delivered to the Tenant on or prior to the Target Date for any reason, whether or not within Landlord's control, Landlord shall
not be subject to any liability to Tenant and no such failure to deliver the Additional Premises by the Target Date or any other date shall in any respect affect the validity or continuance of this
Amendment of any obligation of Tenant hereunder or extend the Term. The Additional Premises Commencement Date and any other factual matters shall be confirmed by Landlord and Tenant by the execution
of a Confirmation Agreement in the form attached hereto as Exhibit "D". If Tenant fails to execute or object to the Confirmation of Lease Term within
ten (10) business days of Tenant's receipt of such Confirmation of Lease Term, Landlord's reasonable determination of the dates and facts set forth therein shall be deemed accepted by Tenant. 

        Notwithstanding
anything in this Amendment to the contrary, if Landlord's Additional Work is not Substantially Complete on or before December 31, 2006, Tenant shall receive as
liquidated damages (which the parties acknowledge will be substantially less than Tenant's actual damages and do not constitute a penalty) a delay in the date on which Tenant is to commence paying
Fixed Basic Rent and Additional Rent for the Additional Premises of one (1) day for each one (1) day of delay from and after December 31, 2006 until the date that Landlord's
Additional Work is Substantially Complete. In addition to the foregoing right to damages, if Landlord's Additional Work is not Substantially Complete on or before February 15, 2007, Tenant
shall have the right, at Tenant's sole discretion, to either (x) terminate this Amendment, by written notice thereof to Landlord, whereupon this Amendment shall be cancelled, and Landlord and
Tenant shall have no further obligations hereunder, or (y) perform all acts and complete Landlord's Additional Work, at Landlord's cost plus ten percent (10%) of such amount for administration,
Interest on such amount expended from the date such expenses were paid or incurred by Tenant until Tenant's expenses are reimbursed or satisfied in full. 

        d.    Extension of Term for Initial Premises.    The term for the Initial Premises (the "Initial Premises Term") is
hereby extended for an additional Three (3) years and Two (2) months and shall expire on December 31, 2013 (the "Expiration Date"). 

        e.    Term for Additional Premises.    The term for the Additional Premises (the "Additional Premises Term" and
together with the Initial Premises Term, the "Term") shall be Seven (7) years commencing on the Additional Premises Commencement Date and expiring on the Expiration Date. 

        f.    Deletion of Section 4(b) of Lease.    Section 4(b) of the Lease is hereby deleted in its entirety. 

        g.    Additional Premises Early Occupancy Incentive.    Commencing on the Additional Premises Commencement Date and
expiring on December 31, 2007 (the "Additional Premises Free Rent Period"), Tenant shall have no obligation to pay Fixed Basic Rent or any Operating Expenses for the Additional Premises.
Notwithstanding the foregoing, during the Additional Premises Free Rent Period, Tenant shall pay as Additional Rent all charges for electricity, light, heat or other utility (other than water and
sewer) used by Tenant at the Additional Premises in accordance with the terms of Section 12(a) of the Lease. 

        h.    Fixed Basic Rent for Additional Premises.    From and after the Additional Premises Commencement Date and
subject to the terms of Paragraph (g) of this Amendment above, Tenant shall pay to Landlord, Fixed Basic Rent for the Additional Premises calculated and payable as follows: 

	Term
 
	 	Rentable

Square Feet
	 	Rate Per Rentable

Square Foot
	 	Yearly Rate
	 	Monthly

Installment

	Additional Premises Commencement Date through 12/31/07	 	17,784	 	$	00.00	 	$	00.00	 	$	00.00
	 	 	
	 	 	 	 	
	 	

	1/1/08 - 12/31/13	 	17,784	 	$	30.50	 	$	542,412	 	$	45,201

        i.    Fixed Basic Rent for Initial Premises.    From the date of this Amendment through October 31, 2010, Fixed
Basic Rent for the Initial Premises (16,875 rentable square feet) shall be paid by Tenant to Landlord in accordance with the terms of Paragraph F of the Preamble of the Lease. From and after
October 31, 2010, Tenant shall pay to Landlord, Fixed Basic Rent for the Initial Premises calculated and payable as follows: 

	Term
 
	 	Rentable

Square Feet
	 	Rate Per Rentable

Square Foot
	 	Yearly Rate
	 	Monthly

Installment

	11/1/10 - 12/31/13	 	16,875	 	$	31.00	 	$	523,125	 	$	43,593.75

        j.    Tenant's Operating Expenses Share.    Paragraph M of the
Preamble of the Lease is hereby modified and amended such that, from and after the Additional Premises Commencement Date, Tenant's Operating Expenses Share for (1) the Initial Premises shall be
23.831 percent; (2) the Additional Premises shall be 25.115 percent and (3) the Premises shall be 48.946 percent. 

        k.    Base Year.    The following new definition is hereby added to the Preamble of the Lease as  Paragraph O: 

        "O.    BASE YEAR shall mean the calendar year ending December 31, 2007." 

        1.    Tenant's Expense Payment for Initial Premises through October 31, 2010.    With respect to Tenant's
Expense Payment for the Initial Premises from the date of this Amendment through October 31, 2010, Tenant shall pay to Landlord, as Additional Rent hereunder, an amount equal to Tenant's
Operating Expense Share for the Initial Premises (23.831%) of the total dollar increase, if any, in Operating Expenses for such Operating Year over the Operating Expenses Stop. 

        m.    Tenant's Expense Payment for Additional Premises through October 31, 2010.    With respect to Tenant's
Expense Payment for the Additional Premises from the date of this Amendment through October 31, 2010, Tenant shall pay to Landlord, as Additional Rent hereunder, an amount equal to Tenant's
Operating Expense Share for the Additional Premises (25.115%) of the total dollar increase, if any, in Operating Expenses for such Operating Year over Operating Expenses for the Base Year. For any
portion of an Operating Year less than twelve (12) full months, Tenant's Expense Payment shall be prorated on a per diem basis. Operating Expenses (exclusive of Real Estate Taxes and the cost
of snow and ice removal) shall not be greater than one hundred and five percent (105%) of the Operating Expenses (exclusive of Real Estate Taxes and the cost of snow and ice removal) for the preceding
Operating Year. 

        n.    Tenant's Expense Payment for the Premises after November 1, 2010.    With respect to Tenant's Expense
Payment for the Premises from and after November 31, 2010 through the Expiration Date, Tenant shall pay to Landlord, as Additional Rent hereunder, an amount equal to Tenant's Operating Expense
Share for the Premises (48.946%) of the total dollar increase, if any, in Operating Expenses for such Operating Year over Operating Expenses for the Base Year. For any portion of an Operating Year
less than twelve (12) full months, Tenant's Expense Payment shall be prorated on a per diem basis. Operating Expenses (exclusive of Real Estate Taxes and the cost of snow and ice removal) shall
not be greater than one hundred and five percent (105%) of the Operating Expenses (exclusive of Real Estate Taxes and the cost of snow and ice removal) for the preceding Operating Year. 

        o.    Parking.    The following language is hereby added at the end of Section 2 of the Lease: 

"Tenant's
use of the Premises shall include the right to use 124 unreserved parking spaces in the parking areas within the Project, free of charge (except to the extent Operating Expenses include
costs associated with the parking areas on the Property) throughout the Term of the Lease and any extensions thereto." 

        p.    Renewal Option.    The terms of Rider A to the Lease shall apply to the Premises as expanded in accordance with
the terms of this Amendment. 

        q.    Right of First Offer.    The words "third level" in the first sentence of Rider B to the Lease are hereby
deleted and the words "second level" are hereby substituted in lieu thereof. Notwithstanding the foregoing, Tenant's Right of Offer shall not apply to the 2,494 square feet of office space described
on Exhibit E attached hereto which space the Landlord will be leasing to another tenant. Within thirty
(30) days of the date of this Amendment, Landlord shall provide Tenant with a list of existing tenants' contractual rights with respect to rentable space on the second level of the Building. 

        r.    Communication Equipment.    The following sentence is hereby added at the end of Section 45 of the Lease:
"In no event shall Tenant be entitled to profit from the Equipment installed on the roof of the Building in accordance with the terms of Section 45 of the Lease, except in the ordinary course
of Tenant's standard business." 

        s.    Signage.    Tenant shall have the right, at Tenant's sole cost and expense, to install exterior
façade signage on the Building which is reasonably acceptable to Landlord to the extent such exterior façade signage has not already been maximized by existing signage
and otherwise in accordance with all applicable laws. 

        t.    Limited Liability.    Landlord's obligations hereunder shall be binding upon Landlord only for the period of
time that Landlord is in ownership of the Building; and, upon termination of that ownership, Tenant, except as to any obligations which are then due and owing or with respect to obligations that arise
from events or actions occurring while Landlord is in ownership of the Building, shall look solely to Landlord's successor in interest in the Building for the satisfaction of each and every obligation
of Landlord hereunder. In addition to the foregoing, no recourse shall be had for an obligation of Landlord or Tenant hereunder, or for any claim based thereon or otherwise in respect thereof, against
any past, present or future trustee, member, partner, shareholder, officer, director, agent or employee of Landlord or Tenant, whether by virtue of any statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such other liability being expressly waived and released by Landlord and Tenant with respect to the above-named individuals and entities. 

        u.    Brokerage Commission.    Except for Binswagner of Pennsylvania, Inc. ("Binswagner") representing Landlord
and CB Richard Ellis representing Tenant, Landlord and Tenant mutually represent and warrant to each other that they have not dealt, and will not deal, with any real estate broker or sales
representative in connection with this proposed transaction. Each party agrees to indemnify, defend and hold harmless the other and their directors, officers, and employees from and against all
threatened or asserted claims, liabilities, costs and damages (including reasonable attorney's fees and disbursements) which may occur as result of a breach of this representation. Landlord agrees to
pay CB Richard Ellis its brokerage commission pursuant to an agreement between Landlord and CB Richard Ellis dated December 15, 2005 and Landlord agrees to pay and Binswagner its brokerage
commissions pursuant to another separate written agreement. 

        v.    Binding Effect.    This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and
their respective permitted successors and assigns. 

        w.    Counterparts.    This Amendment may be executed in two (2) or more counterpart copies, all of which
counterparts shall have the same force and effect as if the parties hereto had executed a single copy of this Amendment. 

        x.    Further Assurance Actions.    Each party agrees that is will take all necessary actions requested by the other
party to effectuate the purposes of this Amendment. 

        y.    Entire Agreement.    The Lease, as amended by this Amendment, contains, and is intended as, a complete statement
of all of the terms of the arrangements between the parties with respect to the matter pertaining to the Premises, supersedes any previous agreements and understanding between the parties with respect
to those matters, and cannot be changed or terminated orally. 

        z.    Governing Law.    This Amendment shall be governed by and construed in accordance with the substantive laws of
the Commonwealth of Pennsylvania. 

        aa.    Headings.    The section headings of this Amendment are for reference purposes only and are to be given no
effect in the construction or interpretation of this Amendment. 

        bb.    Severability.    Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Amendment or such provision, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction. 

        cc.    Parties in Interest; No Third-Party Beneficiaries.    Neither the Lease, this Amendment nor any other
agreement, document or instrument to be delivered pursuant to this Amendment shall be deemed to confer upon any person not a party hereto or thereto any rights or remedies hereunder or thereunder. 

        dd.    Authority.    Landlord and Tenant each represent and warrant to the other party: (a) the execution,
delivery and performance of this Amendment have been duly approved by such party and no further corporate action is required on the part of such party to execute, deliver and perform this Amendment;
(b) the person(s) executing this Amendment on behalf of such party have all requisite 

authority
to execute and deliver this Amendment; and (c) this Amendment, as executed and delivered by such person(s), is valid, legal and binding on such party, and is enforceable against such
party in accordance with its terms. Notwithstanding the foregoing, no persons executing this Amendment on behalf of the Tenant shall have any personal liability for such execution. 

        ee.    Ratification.    Except as modified and amended by the terms of this Amendment, all of the terms, covenants,
representations, warranties, waivers and agreements set forth in the Lease remain in full force and effect and are incorporated herein. Without limiting the generality of the
forgoing, Tenant confirms, ratifies, approves and remakes the confession of judgment provision of the Lease set forth at Section 28(b)(v) and the waiver of jury trial set forth in
Section 28(c), and specifically acknowledges that the same apply to this Amendment and the Lease and are incorporated herein by this reference.

[BALANCE
OF PAGE IS INTENTIONALLY BLANK] 

        IN
WITNESS WHEREOF, the Landlord and Tenant have executed this Amendment as of the day and year first above written. 

	 	 	LANDLORD:
	

WITNESS:	
 	

WASHINGTON STREET ASSOCIATES II, L. P.
	

/s/  ILLEGIBLE      
	
 	

By:	
 	

Washington Street Associates II Acquisition Corporation, its general partner
	

 	
 	

By:	
 	

/s/  RICHARD HEANY      
 Name: Richard Heany

Title: President
	
ATTEST:	
 	

TENANT:
	

/s/  JASON O'DONNELL      
 Jason O'Donnell	
 	
CARDIONET, INC.
	

 	
 	

By:	
 	

/s/  MICHAEL FORESE      
 Name: Michael Forese

Title: V.P. FINANCE & ADM.

QuickLinks

Exhibit 10.14

TABLE OF CONTENTS

PREAMBLE BASIC LEASE PROVISIONS AND DEFINITIONS

RIDER A

RIDER B Tenant's Right of First Offer.

EXHIBIT B LEGAL DESCRIPTION OF PROPERTY

EXHIBIT C BUILDING MEASUREMENT

EXHIBIT E BUILDING HOLIDAYS

EXHIBIT F Janitorial Specifications

EXHIBIT G RULES AND REGULATIONS

EXHIBIT E BUILDING HOLIDAYS

EXHIBIT "B"

ADDITIONAL PREMISES [See Attached]

EXHIBIT H CONFIRMATION OF LEASE TERM

SCHEDULE 1 PREMISES PLANS

EXHIBIT D CONFIRMATION AGREEMENT

EXHIBIT E PREMISES EXCLUDED FROM TENANT'S RIGHT OF FIRST OFFER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]