Document:

Industrial Lease

 Exhibit 10.11 
  
 INDUSTRIAL LEASE 
 (Multi-Tenant; Net) 
 “AS-IS” 
  
 BETWEEN 
  
 THE IRVINE COMPANY 
  
 AND 
  
 CRYOCOR, INC. 

 INDEX TO LEASE 
  

			
	ARTICLE I.	  	BASIC LEASE PROVISIONS
		
	ARTICLE II.	  	PREMISES
	  Section 2.1	  	Leased Premises
	  Section 2.2	  	Acceptance of Premises
	  Section 2.3	  	Building Name and Address
	  Section 2.4	  	Landlord’s Responsibilities
		
	ARTICLE III.	  	TERM
	  Section 3.1	  	General
	  Section 3.2	  	Delay in Possession
	  Section 3.3	  	Early Entry to Premises
		
	ARTICLE IV.	  	RENT AND OPERATING EXPENSES
	  Section 4.1	  	Basic Rent
	  Section 4.2	  	Operating Expenses
	  Section 4.3	  	Security Deposit
	  Section 4.4	  	Letter of Credit
		
	ARTICLE V.	  	USES
	  Section 5.1	  	Use
	  Section 5.2	  	Signs
	  Section 5.3	  	Hazardous Materials
		
	ARTICLE VI.	  	COMMON AREAS; SERVICES
	  Section 6.1	  	Utilities and Services
	  Section 6.2	  	Operation and Maintenance of Common Areas
	  Section 6.3	  	Use of Common Areas
	  Section 6.4	  	Parking
	  Section 6.5	  	Changes and Additions by Landlord
		
	ARTICLE VII.	  	MAINTAINING THE PREMISES
	  Section 7.1	  	Tenant’s Maintenance and Repair
	  Section 7.2	  	Landlord’s Maintenance and Repair
	  Section 7.3	  	Alterations
	  Section 7.4	  	Mechanic’s Liens
	  Section 7.5	  	Entry and Inspection
		
	ARTICLE VIII.	  	TAXES AND ASSESSMENTS ON TENANT’S PROPERTY
		
	ARTICLE IX.	  	ASSIGNMENT AND SUBLETTING
	  Section 9.1	  	Rights of Parties
	  Section 9.2	  	Effect of Transfer
	  Section 9.3	  	Sublease Requirements
	  Section 9.4	  	Certain Transfers
		
	ARTICLE X.	  	INSURANCE AND INDEMNITY
	  Section 10.1	  	Tenant’s Insurance
	  Section 10.2	  	Landlord’s Insurance
	  Section 10.3	  	Tenant’s Indemnity
	  Section 10.4	  	Landlord’s Nonliability
	  Section 10.5	  	Waiver of Subrogation
		
	ARTICLE XI.	  	DAMAGE OR DESTRUCTION
	  Section 11.1	  	Restoration
	  Section 11.2	  	Lease Governs
		
	ARTICLE XII.	  	EMINENT DOMAIN
	  Section 12.1	  	Total or Partial Taking
	  Section 12.2	  	Temporary Taking
	  Section 12.3	  	Taking of Parking Area
		
	ARTICLE XIII.	  	SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS
	  Section 13.1	  	Subordination
	  Section 13.2	  	Estoppel Certificate
	  Section 13.3	  	Financials

  
  

 (i) 

			
	ARTICLE XIV.	 	DEFAULTS AND REMEDIES
	  Section 14.1	 	Tenant’s Defaults
	  Section 14.2	 	Landlord’s Remedies
	  Section 14.3	 	Late Payments
	  Section 14.4	 	Right of Landlord to Perform
	  Section 14.5	 	Default by Landlord
	  Section 14.6	 	Expenses and Legal Fees
	  Section 14.7	 	Waiver of Jury Trial
	  Section 14.8	 	Satisfaction of Judgment
	  Section 14.9	 	Limitation of Actions Against Landlord
		
	ARTICLE XV.	 	END OF TERM
	  Section 15.1	 	Holding Over
	  Section 15.2	 	Merger on Termination
	  Section 15.3	 	Surrender of Premises; Removal of Property
		
	ARTICLE XVI.	 	PAYMENTS AND NOTICES
		
	ARTICLE XVII.	 	RULES AND REGULATIONS
		
	ARTICLE XVIII.	 	BROKER’S COMMISSION
		
	ARTICLE XIX.	 	TRANSFER OF LANDLORD’S INTEREST
		
	ARTICLE XX.	 	INTERPRETATION
	  Section 20.1	 	Gender and Number
	  Section 20.2	 	Headings
	  Section 20.3	 	Joint and Several Liability
	  Section 20.4	 	Successors
	  Section 20.5	 	Time of Essence
	  Section 20.6	 	Controlling Law
	  Section 20.7	 	Severability
	  Section 20.8	 	Waiver and Cumulative Remedies
	  Section 20.9	 	Inability to Perform
	  Section 20.10	 	Entire Agreement
	  Section 20.11	 	Quiet Enjoyment
	  Section 20.12	 	Survival
		
	ARTICLE XXI.	 	EXECUTION AND RECORDING
	  Section 21.1	 	Counterparts
	  Section 21.2	 	Corporate and Partnership Authority
	  Section 21.3	 	Execution of Lease; No Option or Offer
	  Section 21.4	 	Recording
	  Section 21.5	 	Amendments
	  Section 21.6	 	Executed Copy
	  Section 21.7	 	Attachments
		
	ARTICLE XXII.	 	MISCELLANEOUS
	  Section 22.1	 	Nondisclosure of Lease Terms
	  Section 22.2	 	Guaranty
	  Section 22.3	 	Changes Requested by Lender
	  Section 22.4	 	Mortgagee Protection
	  Section 22.5	 	Covenants and Conditions
	  Section 22.6	 	Security Measures
	  Section 22.7	 	JAMS
		
	EXHIBITS	 	 
	  Exhibit A	 	Description of Premises
	  Exhibit B	 	Environmental Questionnaire
	  Exhibit C	 	Landlord’s Disclosures
	  Exhibit D	 	Insurance Requirements
	  Exhibit E	 	Rules and Regulations
	  Exhibit Y	 	Project Site Plan

  
  

 (ii) 

 INDUSTRIAL LEASE 
 (Multi-Tenant; Net) 
 “AS-IS” 
  
 THIS LEASE is made as of the 1st day of November, 2000, by and between THE IRVINE COMPANY, hereafter called “Landlord,” and CRYOCOR, INC., a Delaware corporation, hereinafter called “Tenant.” 
  
 ARTICLE I. BASIC LEASE PROVISIONS 
  
 Each reference in this Lease to the “Basic Lease Provisions” shall
mean and refer to the following collective terms, the application of which shall be governed by the provisions in the remaining Articles of this Lease. 
  

	1.	Premises: Suite No. 150 (the Premises are more particularly described in Section 2.1). 

  
 Address of Building: 9717 Pacific Heights Blvd., San Diego, CA 
  

	2.	Project Description (if applicable): Cornerstone Corporate Center 

  

	3.	Use of Premises: General office, research and development, light assembly and distribution, and any other lawful uses permitted by applicable zoning codes, provided that in no event
shall any of the sales of any products or services on a “retail” basis be permitted on or about the Premises. 

  

	4.	Commencement Date: December 1, 2000 

  

	5.	Lease Term: The Term of this Lease shall expire at midnight on November 30, 2005. 

  

	6.	Basic Rent: Nineteen Thousand Seven Hundred Fifty-Five Dollars ($19,755.00) per month, based on $.99 per rentable square foot. 

  
 Basic Rent is subject to adjustment as follows: 
  
 Commencing December 1, 2001, the Basic Rent shall be Twenty Thousand Seven
Hundred Fifty-Three Dollars ($20,753.00) per month, based on $1.04 per rentable square foot. 
  
 Commencing December 1, 2002, the Basic Rent shall be Twenty One Thousand Seven Hundred Fifty-One Dollars ($21,751.00) per month, based on $1.09 per rentable square foot. 
  
 Commencing December 1, 2003, the Basic Rent shall be Twenty Two Thousand
Seven Hundred Forty-Nine Dollars ($22,749.00) per month, based on $1.14 per rentable square foot. 
  
 Commencing December 1, 2004, the Basic Rent shall be Twenty Three Thousand Seven Hundred Forty-Six Dollars ($23,746.00) per month, based on $1.19 per
rentable square foot. 
  

	7.	Guarantor(s): None 

  

	8.	Floor Area of Premises: approximately 19,955 rentable square feet 

  

	9.	Security Deposit: $26,121.00 [see also Section 4.4 for Letter of Credit requirements] 

  

	10.	Broker(s): Irving Hughes/Colliers International 

  

	11.	Additional Insureds: Insignia/ESG, Inc. 

  

 1 

	12.	Address for Payments and Notices: 

  

			
	 LANDLORD
	 	TENANT
		
	 THE IRVINE COMPANY
 c/o Insignia/ESG, Inc.
 43 Discovery, Suite 120
 Irvine, CA 92618
	 	 CRYOCOR, INC.
 9717 Pacific Heights Blvd., Suite
150
 San Diego, CA 92121

		
	 with a copy of notices to:
	 	 
	 THE IRVINE COMPANY
	 	 
	 dba Irvine Industrial Company
	 	 
	 P.O. Box 6370
	 	 
	 Newport Beach, CA 92658-6370
	 	 
	 Attn: Vice President, Industrial Operations
	 	 

  

	13.	Tenant’s Liability Insurance Requirement: $2,000,000.00 

  

	14.	Vehicle Parking Spaces: Seventy (70) parking spaces (four (4) of which spaces shall be “Visitor”) 

  

 2 

 ARTICLE II. PREMISES 
  
 SECTION 2.1. LEASED PREMISES. Landlord leases to Tenant and Tenant leases from Landlord the premises shown in Exhibit
A (the “Premises”), containing approximately the floor area set forth in Item 8 of the Basic Lease Provisions and known by the suite number identified in Item 1 of the Basic Lease Provisions. The Premises are located in the building
identified in Item 1 of the Basic Lease Provisions (which together with the underlying real property, is called the “Building”), and is a portion of the project shown in Exhibit Y (the “Project”). Tenant understands that
the floor area set forth in Item 8 of the Basic Lease Provisions may include, at Landlord’s option, a factor approximating the total square footage of any common lobby or internal common features of the Building times the ratio of the
actual square footage of the Premises to the total square footage of the Building. 
  
 SECTION 2.2. ACCEPTANCE OF PREMISES. Tenant acknowledges that neither Landlord nor any representative of Landlord has made any representation or warranty with respect to the Premises or the Building or the suitability
or fitness of either for any purpose, including without limitation any representations or warranties regarding zoning or other land use matters, and that neither Landlord nor any representative of Landlord has made any representations or warranties
regarding (i) what other tenants or uses may be permitted or intended in the Building and the Project, or (ii) any exclusivity of use by Tenant with respect to its permitted use of the Premises as set forth in Item 3 of the Basic Lease Provisions.
Tenant further acknowledges that neither Landlord nor any representative of Landlord has agreed to undertake any alterations or additions to the Premises except as expressly provided in this Lease. It is further understood that Tenant shall take
possession of the Premises as of the Commencement Date of this Lease in an “as-is” condition without further obligation on Landlord’s part as to improvements whatsoever, except as expressly provided in Section 2.4 below.

  
 SECTION 2.3. BUILDING NAME AND ADDRESS. Tenant shall not
utilize any name selected by Landlord from time to time for the Building and/or the Project as any part of Tenant’s corporate or trade name. Landlord shall have the right to change the name, address, number or designation of the Building or
Project without liability to Tenant. 
  
 SECTION 2.4.
LANDLORD’S RESPONSIBILITIES. 
  
 (a) Landlord warrants to
Tenant that the plumbing, lighting, heating, ventilation and air condition systems serving the Premises shall be in good operating condition on the Commencement Date of this Lease. In the event that Tenant shall notify Landlord of a non-compliance
with the foregoing warranty on or before thirty (30) days following the Commencement Date, then Landlord shall promptly rectify same at Landlord’s sole cost and expense. Notwithstanding the foregoing warranty by Landlord, however, Tenant
acknowledges and agrees that Landlord’s latest Building maintenance reports estimate that the HVAC units serving the Building will need to be replaced in an approximate 3 to 5 year time period from and after the Commencement Date, and that the
roof of the Building will need to be replaced in approximately two (2) years, and that Tenant will bear the amortized cost of such “capital” replacements in accordance with the provisions for amortization contained in Section 4.2(f) of
this Lease. 
  
 (b) Subject to the express provisions of Section
2.4(c) below, Landlord shall correct, repair or replace, at Landlord’s sole cost and expense and not as a Project Cost: (i) any non-compliance of the Building exterior and the Common Areas with the provisions of Title III of the Americans With
Disabilities Act (“ADA”) in effect as of the Commencement Date, and (ii) any non-compliance of the Building and the Common Areas with any applicable City of San Diego building or fire codes in effect as of the issuance of building permits
therefor. Landlord shall correct, repair or replace any non-compliance of the Building exterior and the Common Areas with any revisions or amendments to the ADA in effect after the Commencement Date, provided that the amortized cost of such repairs
or replacements (amortized over the useful life thereof using a market cost of funds reasonably determined by Landlord) shall be included as Project Costs payable by Tenant. All other ADA or building and fire code compliance issues which pertain to
the Premises, including without limitation, in connection with Tenant’s construction of any alterations or other improvements in the Premises (and any resulting ADA compliance requirements in the Common Areas) and the operation of Tenant’s
business and employment practices in the Premises, shall be the responsibility of Tenant at its sole cost and expense. The repairs, corrections or replacements required of Landlord or of Tenant under the foregoing provisions of this Section 2.4(b)
shall be made promptly following notice of non-compliance from any applicable governmental agency. 
  
 (c) If Tenant’s alterations to the Premises (approved by Landlord pursuant to the provisions of this Lease) subsequent to the Commencement Date
require “path of travel” changes or replacements to the Building exterior or to the Common Areas (including, without limitation, replacement of the staircase serving the rear entrance door of the Building) due to compliance with either the
City of San Diego building or fire codes which are in effect as of the execution of this Lease (i.e., the 1997 Uniform Building Code) or with the ADA in effect as of the Commencement Date, then Landlord shall reimburse Tenant for the reasonable
out-of-pocket cost of constructing such changes or replacements, subject, however, to the following conditions: (i) any such changes or replacements shall be completed by Tenant, and the request for reimbursement(s) shall be submitted to Landlord,
by that date which is not later than twenty-four (24) months from and after the Commencement Date of this Lease, and (ii) in no event shall such reimbursement(s) by Landlord exceed the amount of Thirty Thousand Dollars ($30,000.00) in the aggregate.
Landlord shall make any such reimbursement(s) to Tenant (or shall credit such reimbursement(s) to rent then next coming due under this Lease), within ten (10) days following written request therefor from Tenant accompanied by invoice(s) or other
reasonable evidence of Tenant’s expenditure of said costs. 
  

 3 

 ARTICLE III. TERM 
  

SECTION 3.1. GENERAL. The Term shall be for the period shown in Item 5 of the Basic Lease Provisions. The Term shall commence (“Commencement
Date”) on the date set forth in Item 4 of the Basic Lease Provisions and shall expire on the date set forth in Item 5 of the Basic Lease Provisions (the “Expiration Date”). 
  
 SECTION 3.2. DELAY IN POSSESSION. If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to
Tenant on or before the Commencement Date, this Lease shall not be void or voidable nor shall Landlord be liable to Tenant for any resulting loss or damage. However, Tenant shall not be liable for any rent and the Commencement Date shall not occur
until Landlord delivers possession of the Premises and the Premises are in fact available for Tenant’s occupancy, except that if Landlord’s failure to so deliver possession on the Commencement Date is attributable to any action or inaction
by Tenant, then the Commencement Date shall not be advanced to the date on which possession of the Premises is tendered to Tenant, and Landlord shall be entitled to full performance by Tenant (including the payment of rent) from the date Landlord
would have been able to deliver the Premises to Tenant but for Tenant’s delay(s). 
  
 SECTION 3.3. EARLY ENTRY TO PREMISES Notwithstanding the provisions of Section 3.1 above, upon the full execution and delivery of this Lease, Landlord shall provide Tenant with access to the Premises to enable Tenant
to install improvements, fixtures, furniture, computers, telephone and cabling equipment in the Premises. In addition, it is further understood that, if desired by Tenant, Tenant shall install new carpet in the Premises and repaint the Premises at
Tenant’s sole cost and expense. Such access shall be subject to all of the terms and conditions of this Lease, including without limitation the insurance and indemnity provisions of Article X hereof, except that Tenant’s Basic Rent and
Operating Expense obligations shall not commence to accrue until the Commencement Date hereof. 
  
 ARTICLE IV. RENT AND OPERATING EXPENSES 
  
 SECTION 4.1. BASIC RENT. From and after the Commencement Date, Tenant shall pay to Landlord without deduction or offset, Basic Rent for the Premises in the total amount shown (including subsequent adjustments, if any) in Item 6 of the Basic
Lease Provisions. Any rental adjustment shown in Item 6 shall be deemed to occur on the specified monthly anniversary of the Commencement Date, whether or not that date occurs at the end of a calendar month. The rent shall be due and payable in
advance commencing on the Commencement Date (as prorated for any partial month) and continuing thereafter on the first day of each successive calendar month of the Term. No demand, notice or invoice shall be required for the payment of Basic Rent.
An installment of rent in the amount of one (1) full month’s Basic Rent at the initial rate specified in Item 6 of the Basic Lease Provisions shall be delivered to Landlord concurrently with Tenant’s execution of this Lease and shall be
applied against the Basic Rent first due hereunder. 
  
 SECTION
4.2. OPERATING EXPENSES. 
  
 (a) Tenant shall pay to Landlord, as
additional rent, Tenant’s Share of “Operating Expenses”, as defined below, incurred by Landlord in the operation of the Building and Project. The term “Tenant’s Share” means that portion of an Operating Expense
determined by multiplying the cost of such item by a fraction, the numerator of which is the rentable floor area of the Premises and the denominator of which is the total rentable square footage of the floor area, as determined from time to time by
Landlord, of (i) the Building, for expenses determined by Landlord to benefit or relate substantially to the Building rather than the entire Project, (ii) all of the buildings in the Project for expenses determined by Landlord to benefit or relate
substantially to the entire Project rather than any specific building or (iii) all or some of the buildings within the Project as well as all or a portion of other property owned by Landlord and/or its affiliates, for expenses which benefit or
relate to such buildings within the Project and such other real property. 
  
 (b) Commencing prior to the start of the first full “Expense Recovery Period” (as defined below) of the Lease, and prior to the start of each full or partial Expense Recovery Period thereafter, Landlord
shall give Tenant a written estimate of the amount of Tenant’s Share of Operating Expenses for the Expense Recovery Period. Tenant shall pay the estimated amounts to Landlord in equal monthly installments, in advance, with Basic Rent. If
Landlord has not furnished its written estimate for any Expense Recovery Period by the time set forth above, Tenant shall continue to pay cost reimbursements at the rates established for the prior Expense Recovery Period, if any; provided that when
the new estimate is delivered to Tenant, Tenant shall, at the next monthly payment date, pay any accrued cost reimbursements based upon the new estimate. For purposes hereof, “Expense Recovery Period” shall mean every twelve month period
during the Term (or portion thereof for the first and last lease years) commencing July 1 and ending June 30. 
  
 (c) Within one hundred twenty (120) days after the end of each Expense Recovery Period, Landlord shall furnish to Tenant a statement showing in reasonable
detail the actual or prorated Operating Expenses incurred by Landlord during the period, and the parties shall within thirty (30) days thereafter make any payment or allowance necessary to adjust Tenant’s estimated payments, if any, to the
actual Tenant’s Share as shown by the annual statement. Any delay or failure by Landlord in delivering any statement hereunder shall not constitute a waiver of Landlord’s right to require Tenant to pay Tenant’s Share of Operating
Expenses pursuant hereto. Any amount due Tenant shall be credited against installments next coming due under this Section 4.2, and any deficiency shall be paid by Tenant together with the next installment. If Tenant has not made estimated payments
during the Expense Recovery Period, any amount owing by Tenant pursuant to subsection (a) above shall be paid to Landlord in accordance with Article XVI. 
  

 4 

 Should Tenant fail to object in writing to Landlord’s determination of actual Operating Expenses, or fail to give
written notice of its intent to audit Landlord’s Operating Expenses pursuant to the provisions of the next succeeding paragraph, within sixty (60) days following delivery of Landlord’s expense statement, Landlord’s determination of
actual Operating Expenses for the applicable Expense Recovery Period shall be conclusive and binding on the parties and any future claims to the contrary shall be barred. 
  
 Provided Tenant is not then in default under this Lease beyond the expiration of any applicable cure period, Tenant shall
have the right to have Tenant’s financial officer or a certified public accountant audit Landlord’s actual Operating Expenses for the most recent Expense Recovery Period, subject to the terms and conditions hereof. In no event, however,
shall such auditor be compensated by Tenant on a “contingency” basis, or on any other basis tied to the results of said audit. Tenant shall give written notice to Landlord of Tenant’s intent to audit, if at all, within sixty (60) days
following delivery of Landlord’s expense statement for each of the Expense Recovery Periods. Following at least ten (10) business days notice to Landlord, such audit shall be conducted at a mutually agreeable time during normal business hours
at the office of Landlord or its management agent where the records are maintained in San Diego County, California. Landlord agrees to make such personnel available to Tenant as is reasonably necessary for Tenant’s employees and agents, to
conduct such audit. Landlord shall make such records available to Tenant’s employees and agents, for inspection during normal business hours. Tenant’s employees and agents shall be entitled to make photostatic copies of such records,
provided Tenant bears the expense of such copying, and further provided that Tenant keeps such copies in a confidential manner and does not discuss, display or distribute such copies to any other third party. If Tenant’s audit determines that
actual Operating Expenses have been overstated by more than five percent (5%), then subject to Landlord’s right to review and/or contest the audit results, Landlord shall reimburse Tenant for the reasonable out-of-pocket costs of such
audit. Tenant’s Basic Rent shall be appropriately adjusted to reflect any overstatement in Operating Expenses. In the event of a dispute between Landlord and Tenant regarding the results of such audit, such dispute shall be
submitted to and resolved by JAMS as provided in Section 22.7 of this Lease. Until final resolution of such dispute by JAMS, Tenant shall continue to pay its Tenant’s Share of Operating Expenses as required by the provisions of the Lease.

  
 All of the information obtained by Tenant and/or its auditor
in connection with such audit, as well as any compromise, settlement, or adjustment reached between Landlord and Tenant as a result thereof, shall be held in strict confidence and, except as may be required pursuant to litigation, shall not be
disclosed to any third party, directly or indirectly, by Tenant or its auditor or any of their officers, agents or employees. Landlord may require Tenant and its auditor to execute a separate confidentiality agreement as a condition precedent to any
audit. 
  
 (d) Even though the Lease has terminated and the Tenant
has vacated the Premises, when the final determination is made of Tenant’s Share of Operating Expenses for the Expense Recovery Period in which the Lease terminates, Tenant shall upon notice pay the entire increase due over the estimated
expenses paid. Conversely, any overpayment made in the event expenses decrease (including, without limitation, any overpayment in connection with decreases in Property Taxes) shall be rebated by Landlord to Tenant. 
  
 (e) If, at any time during any Expense Recovery Period, any one or more of
the Operating Expenses are increased to a rate(s) or amount(s) in excess of the rate(s) or amount(s) used in calculating the estimated expenses for the year, then the estimate of Tenant’s Share of Operating Expenses shall be increased for the
month in which such rate(s) or amount(s) becomes effective and for all succeeding months by an amount equal to Tenant’s Share of the increase. Landlord shall give Tenant written notice of the amount or estimated amount of the increase, the
month in which the increase will become effective, Tenant’s Share thereof and the month for which the payments are due. Subject to Tenant’s right to audit contained in Section 4.2(c) above, Tenant shall pay the increase to Landlord as a
part of Tenant’s monthly payments of estimated expenses as provided in paragraph (b) above, commencing with the month in which effective. 
  
 (f) The term “Operating Expenses” shall mean and include all “Project Costs” (as hereafter defined) and “Property Taxes” (as
hereafter defined). 
  
 (g) The term “Project Costs”
shall include all expenses of operation and maintenance of the Building and the Project, together with all appurtenant Common Areas (as defined in Section 6.2), and shall include the following charges by way of illustration but not limitations water
and sewer charges not relating to the original construction of the Building or Project; insurance premiums or reasonable premium equivalents should Landlord elect to self-insure any risk that Landlord is authorized to insure hereunder; license,
permit, and inspection fees; heat; light; power; janitorial services to any interior Common Areas; air conditioning; supplies; materials; equipment; tools; the cost of any environmental, insurance, tax or other consultant whose services are utilized
by Landlord for the benefit of the Building and/or Project; establishment of reasonable reserves for replacements and/or repair of the Building and/or Common Area improvements, equipment and supplies; costs incurred in connection with compliance of
any laws or changes in laws applicable to the Building or the Project (provided that, except for laws or changes in laws that pertain particularly to Tenant or to Tenant’s particular use of the Premises [which shall be the sole responsibility
of Tenant at its cost], to the extent such laws or change in laws require expenditures of a “capital” nature [as determined by generally accepted accounting principles, consistently applied], then such “capital” expenditure shall
be amortized [using a market cost of funds as reasonably determined by Landlord] over the useful life of such asset and only the amortized cost thereof shall be includable in Project Costs during the remaining Term of the Lease); the cost of any
“capital” investments (other than tenant improvements for specific tenants) to the extent of the amortized amount thereof over the useful life of such capital investments calculated at a market cost of funds, all as reasonably determined
by Landlord in accordance with generally accepted accounting principles, consistently applied, for each such year of useful life during the Term; costs 
  

 5 

 associated with the procurement and maintenance of an air conditioning, heating and ventilation service agreement, and
maintenance of an intrabuilding network cable service agreement for any intrabuilding network cable telecommunications lines within the Project, and any other maintenance, repair and replacement costs associated with such lines; labor; reasonably
allocated wages and salaries, fringe benefits, and payroll taxes for administrative and other personnel directly applicable to the Building and/or Project, including both Landlord’s personnel and outside personnel; any expense incurred pursuant
to Sections 6.1, 6.2, 6.4, 7.2, and 10.2; and a reasonable and market competitive overhead/management fee for the professional operation of the Project. Notwithstanding anything to the contrary herein, Tenant’s Share of any such property
management fees shall be determined by multiplying the actual property management fee charged (which from time to time may be with respect to the Building only, a portion of the Project only, the entire Project, or the Project together with other
properties owned by Landlord and/or its affiliates) by a fraction, the numerator of which is the floor area of the Premises (as set forth in Item 8 of the Basic Lease Provisions contained in the Lease), and the denominator of which is the total
square footage of space charged with such management fee actually leased to tenants (including Tenant). It is understood that Project Costs shall include market competitive charges for direct services provided by any subsidiary or division of
Landlord. 
  
 (h) Subject to the exclusions contained in Section
4.2(i) below, the term “Property Taxes” as used herein shall include the following: (i) all real estate taxes or personal property taxes, as such property taxes may be reassessed from time to time; and (ii) other taxes, charges and
assessments which are levied with respect to this Lease or to the Building and/or the Project, and any improvements, fixtures and equipment and other property of Landlord located in the Building and/or the Project, except that general net income and
franchise taxes imposed against Landlord shall be excluded; and (iii) all assessments and fees for public improvements, services, and facilities and impacts thereon, including without limitation arising out of any Community Facilities Districts,
“Mello Roos” districts, similar assessment districts, and any traffic impact mitigation assessments or fees; (iv) any tax, surcharge or assessment which shall be levied in addition to or in lieu of real estate or personal property taxes,
other than taxes covered by Article VIII; and (v) costs and expenses incurred in contesting the amount or validity of any Property Tax by appropriate proceedings. 
  
 (i) Operating Expenses shall not include the following items: leasing commissions, finders’ fees, brokerage fees and
commissions, legal fees and other costs incurred in connection with the marketing or promoting of the Building or the Project or negotiation and/or enforcement of leases; finders fees, brokerage fees and commissions, legal fees and other marketing
costs and expenses incurred in connection with the sale of all or any portion of the Project; any costs from the original construction of the Building or the Project; costs incurred (less costs of recovery) for any item to the extent covered by a
manufacturer’s, materialman’s, vendor’s or contractor’s warranty and paid by such manufacturer, materialman, vendor or contractor; costs associated with the operation of the business of the entity which constitutes Landlord
including costs of company accounting and legal matters (except as actions of Tenant may be in issue); costs of defending any lawsuits with any mortgagee (except as actions of Tenant may be in issue); costs incurred in connection with any disputes
between Landlord and its employees or the Project management; any cost actually reimbursed by insurance proceeds or condemnation award; holiday decorations or gifts; costs of purchase or installation of any artwork or sculpture; charitable or
political contributions; ground rent; mortgage interest, principal, depreciation, points and fees on debt or amortization or for any mortgage(s) encumbering the Project, or any part thereof, and all principal, escrow deposits and other sums paid on
or in respect to any indebtedness (whether or not secured by a mortgage lien) and any equity participations of lender or lessor, and all costs incurred in connection with any financing, refinancing or syndication of the Project, or any part thereof;
any costs incurred by Landlord with respect to services to the extent made available to other tenants of the Project but not made available to Tenant; amounts of payments by Landlord or to its affiliates for goods and services in excess of a market
competitive rate; income, franchise, transfer, inheritance, capital stock, capital levy, estate, profit, gift or succession taxes; bad debt loss, rent loss, or reserves for bad debts or rent loss; fines, penalties or other costs incurred as the
result of a breach by Landlord of its obligations under this Lease; and any costs expressly excluded from Operating Expenses elsewhere in this Lease. 
  
 SECTION 4.3. SECURITY DEPOSIT. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item
9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of Tenant’s obligations under this Lease (the “Security Deposit”). Subject to the last sentence of this Section, the Security
Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its discretion towards the payment of all prepaid expenses by Landlord for which Tenant would be required
to reimburse Landlord under this Lease, including without limitation brokerage commissions. Upon any default by Tenant, including specifically Tenant’s failure to pay rent or to abide by its obligations under Sections 7.1 and 15.3 below,
whether or not Landlord is informed of or has knowledge of the default, the Security Deposit shall be deemed to be automatically and immediately applied, without waiver of any rights Landlord may have under this Lease or at law or in equity as a
result of the default, as a setoff for full or partial compensation for that default. If any portion of the Security Deposit is applied after a default by Tenant, Tenant shall within ten (10) days after written demand by Landlord deposit cash with
Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security
Deposit. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the
expiration of the Term, provided that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full. 
  
 SECTION 4.4. LETTER OF CREDIT. In addition to the Security Deposit and as
security hereunder, Tenant shall deliver to Landlord, concurrently with Tenant’s execution of this Lease, an irrevocable stand-by letter of credit in the amount of One Hundred Thousand Dollars ($100,000.00). Said letter of credit shall be in
form and with 
  

 6 

 the substance of Exhibit F attached hereto, and issued by a financial institution located in Southern California
and which is acceptable to Landlord. The letter of credit shall either: (i) be issued with a fixed expiration date of January 31, 2006, or (ii) shall provide for automatic annual renewals through that date which is sixty (60) days after the
Expiration Date of the Term of this Lease. In the event the letter of credit is issued with an annual renewal obligation and the letter of credit is not renewed by the issuing financial institution on or before twenty (20) days prior to the
then-scheduled expiration date of the letter of credit, then Landlord shall have the right to draw the full amount of such letter of credit and to hold such amount as part of the Security Deposit pursuant to Section 4.3 of this Lease. Upon any
default by Tenant, including specifically Tenant’s failure to pay rent or to abide by its obligations under Sections 7.1 and 15.3 below and Tenant’s failure to cure the same within any applicable cure period, Landlord shall be entitled to
draw upon said letter of credit by the issuance of Landlord’s sole written demand to the issuing financial institution, which draw shall be in an amount necessary to cure the default in question and to compensate Landlord for all damages
incurred thereby, as determined by Landlord in its sole and absolute discretion, and if such amount cannot be readily determined by Landlord, then the full amount of the letter of credit can be drawn by Landlord pending determination of said amount.
Notwithstanding the foregoing, while the amount of any such draw shall be determined in Landlord’s sole and absolute discretion as provided as provided in the foregoing, if the amount of any such draw(s) shall ultimately exceed the amount of
damages actually incurred by Landlord as the result of Tenant’s default (as determined pursuant to the applicable provisions of Article XIV of this Lease), then Landlord shall promptly refund any such excess to Tenant. Any such draw shall be
without waiver of any rights Landlord may have under this Lease or at law or in equity as a result of the default, as a setoff for full or partial compensation for the default. If any portion of the letter of credit is drawn after a default by
Tenant, Tenant shall within ten (10) days after written demand by Landlord restore the letter of credit. Failure to so restore said letter of credit within said ten (10) days shall be a default by Tenant under this Lease. Partial drawings upon said
letter of credit shall be permitted. 
  
 If on or after the second
annual anniversary of the Commencement Date of this Lease: (a) Tenant has not been in default under the Lease (beyond the expiration of any applicable cure period) at any time during the Term hereof, (b) Tenant has not at any time been more than ten
(10) days late with respect to any payments of rent due under the Lease, and (c) Tenant shall demonstrate by the delivery to Landlord of its audited financial statements that Tenant has achieved a positive net income and a positive net worth for the
most current quarter (as determined by generally accepted accounting principles, consistently applied, and issued by a nationally recognized accounting firm), then upon the written request of Tenant accompanied by copies of the audited financial
statements required in Subsection (c) of this paragraph, Landlord shall authorize an immediate full exoneration and release of the letter of credit. 
  
 ARTICLE V. USES 
  
 SECTION 5.1. USE. Tenant shall use the Premises only for the purposes stated in Item 3 of the Basic Lease Provisions, all in accordance with applicable
laws and restrictions and pursuant to approvals to be obtained by Tenant from all relevant and required governmental agencies and authorities. The parties agree that any contrary use shall be deemed to cause material and irreparable harm to Landlord
and shall entitle Landlord to injunctive relief in addition to any other available remedy. Tenant, at its expense, shall procure, maintain and make available for Landlord’s reasonable inspection throughout the Term, all governmental approvals,
licenses and permits required for the proper and lawful conduct of Tenant’s permitted use of the Premises. Tenant shall not do or permit anything to be done in or about the Premises which will in any way interfere with the rights of other
occupants of the Building or the Project, or use or allow the Premises to be used for any unlawful purpose, nor shall Tenant permit any nuisance or commit any waste in the Premises or the Project. Tenant shall not do or permit to be done anything
which will invalidate or increase the cost of any insurance policy(ies) covering the Building, the Project and/or their contents, and shall comply with all applicable insurance underwriters rules and the requirements of the Pacific Fire Rating
Bureau or any other organization performing a similar function. Tenant shall comply at its expense with all present and future laws, ordinances, restrictions, regulations, orders, rules and requirements of all governmental authorities that pertain
to Tenant or its use of the Premises, including without limitation all federal and state occupational health and safety requirements, whether or not Tenant’s compliance will necessitate expenditures or interfere with its use and enjoyment of
the Premises. Tenant shall comply at its expense with all existing covenants, conditions, easements or restrictions now affecting or encumbering the Building and/or Project, including without limitation the payment by Tenant of any periodic or
special dues or assessments charged against the Premises or Tenant which may be allocated to the Premises or Tenant in accordance with the provisions thereof. Tenant shall also comply at its expense with any future amendments or modifications to
such existing covenants, conditions, easements or reservations, and with any future covenants, conditions, easements or restrictions hereafter affecting or encumbering the Building and/or the Project, provided same do not materially impair
Tenant’s use or enjoyment of the Premises. Tenant shall promptly upon demand reimburse Landlord for any additional insurance premium charged by reason of Tenant’s failure to comply with the provisions of this Section, and shall indemnify
Landlord from any liability and/or expense resulting from Tenant’s noncompliance. Notwithstanding anything to the contrary contained in this Section 5.1, in the event Tenant’s obligation for compliance with all future and present laws,
ordinances, restrictions, regulations, orders, rules and requirements of all governmental authorities, and with all present and future covenants, conditions, easements or restrictions now or hereafter affecting or encumbering the Building and/or the
Project, results in a “capital” improvement on Tenant’s part (or Tenant’s being obligated to reimburse Landlord for a “capital” improvement), Tenant shall only be responsible for the amortized cost of such
“capital” improvement (amortized at a market cost of funds as reasonably determined by Landlord) over the useful life of said improvement during the Term, except in the event each obligation for “capital” improvements is required
due to Tenant’s particular use of the Premises (in which case Tenants shall be fully responsible for the entire cost and installation of each “capital” investment). 
  

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 SECTION 5.2 SIGNS. Provided Tenant continues to occupy the entire Premises, Tenant shall have the
non-exclusive right to one (1) exterior sign on the Building in a location designated by Landlord, subject to Landlord’s right of prior approval that such exterior signage is in compliance with the Signage Criteria (defined below). Except as
provided in the foregoing or as otherwise approved in writing by Landlord, in its sole discretion, Tenant shall have no right to maintain identification signs in any location in, on or about the Premises, the Building or the Project and shall not
place or erect any other signs, displays or other advertising materials that are visible from the exterior of the Building. The size, design, graphics, material, style, color and other physical aspects of any permitted sign shall be subject to
Landlord’s determination prior to installation that such elements are in compliance with any covenants, conditions or restrictions encumbering the Premises, Landlord’s signage program for the Project, as in effect from time to time and
approved by the City in which the Premises are located (“Signage Criteria”), and any applicable municipal or other governmental permits and approvals. Tenant acknowledges having received and reviewed a copy of the current Signage Criteria
for the Project. Tenant shall be responsible for the cost of any permitted sign, including the fabrication, installation, maintenance and removal thereof. If Tenant fails to maintain its sign, or if Tenant fails to remove same upon termination of
this Lease and repair any damage caused by such removal, Landlord may do so at Tenant’s expense. 
  
 SECTION 5.3 HAZARDOUS MATERIALS. 
  
 (a) For purposes of this Lease, the term “Hazardous Materials” includes (i) any “hazardous materials” as defined in Section 25501(n)
of the California Health and Safety Code, (ii) any other substance or matter which results in liability to any person or entity from exposure to such substance or matter under any statutory or common law theory, and (iii) any substance or matter
which is in excess of permitted levels set forth in any federal, California or local law or regulation pertaining to any hazardous or toxic substance, material or waste. 
  
 (b) Tenant shall not cause or permit any Hazardous Materials to be brought upon, stored, used, generated, released or
disposed of on, under, from or about the Premises (including without limitation the soil and groundwater thereunder) without the prior written consent of Landlord. Notwithstanding the foregoing, Tenant shall have the right, without obtaining prior
written consent of Landlord: (A) to utilize within the Premises standard office products that may contain Hazardous Materials (such as photocopy toner, “White Out”, and the like), provided however, that (i) Tenant shall
maintain such products in their original retail packaging, shall follow all instructions on such packaging with respect to the storage, use and disposal of such products, and shall otherwise comply with all applicable laws with respect to such
products, and (ii) all of the other terms and provisions of this Section 5.3 shall apply with respect to Tenant’s storage, use and disposal of all such products, and (B) to utilize within the Premises those Hazardous Materials in kind and
content listed on the Environmental Questionnaire delivered to Landlord prior to the execution of this Lease, provided that Tenant shall comply with all applicable laws with respect to such Hazardous Materials and all of the other terms and
provisions of this Section 5.3 shall apply with respect to Tenant’s storage, use and disposal of such Hazardous Materials. The Hazardous Materials and amount of the Hazardous Materials consented to under the foregoing Subsection 5.3(b)(B)
cannot be thereafter prohibited or reduced by Landlord unless such action is mandated by a change in applicable law or upon mutual agreement by the parties. Landlord may, in its sole discretion, place such conditions as Landlord deems appropriate
with respect to any such Hazardous Materials, and may further require that Tenant demonstrate that any such Hazardous Materials are necessary or useful to Tenant’s business and will be generated, stored, used and disposed of in a manner that
complies with all applicable laws and regulations pertaining thereto and with good business practices: Tenant understands that Landlord may utilize an environmental consultant to assist in determining conditions of approval in connection with the
storage, generation, release, disposal or use of Hazardous Materials by Tenant on or about the Premises, and/or to conduct periodic inspections of the storage, generation, use, release and/or disposal of such Hazardous Materials by Tenant on and
from the Premises, and Tenant agrees that any costs incurred by Landlord in connection therewith shall be reimbursed by Tenant to Landlord as additional rent hereunder within ten (10) days of demand; however, Tenant shall have no obligation to
reimburse Landlord for any costs incurred in connection with any environmental consultant retained by Landlord pursuant to this Section unless Tenant shall be in default under this Section 5.3 and such costs are covered by Tenant’s indemnity
contained in this Section 5.3. 
  
 (c) Prior to the execution of
this Lease, Tenant shall complete, execute and deliver to Landlord an Environmental Questionnaire and Disclosure Statement (the “Environmental Questionnaire”) in the form of Exhibit B attached hereto. The completed Environmental
Questionnaire shall be deemed incorporated into this Lease for all purposes, and Landlord shall be entitled to rely fully on the information contained therein. On each anniversary of the Commencement Date until the expiration or sooner termination
of this Lease, Tenant shall disclose to Landlord in writing the names and amounts of all Hazardous Materials (except standard office products that may contain Hazardous Materials permitted under Section 5.3(b) above) which were stored, generated,
used, released and/or disposed of on, under or about the Premises for the twelve-month period prior thereto, and which Tenant desires to store, generate, use, release and/or dispose of on, under or about the Premises for the succeeding twelve-month
period. In addition, to the extent Tenant is permitted to utilize Hazardous Materials (except standard office products that may contain Hazardous Materials permitted under Section 5.3(b) above) upon the Premises, Tenant shall promptly provide
Landlord with complete and legible copies of all the following environmental documents relating thereto: reports filed pursuant to any self-reporting requirements; permit applications, permits, monitoring reports, workplace exposure and community
exposure warnings or notices and all other reports, disclosures, plans or documents (even those which may be characterized as confidential) relating to water discharges, air pollution, waste generation or disposal, and underground storage tanks for
Hazardous Materials; orders, reports, notices, listings and correspondence (even those which may be considered confidential) of or concerning the release, investigation of, compliance, cleanup, remedial and corrective actions, and abatement of
Hazardous Materials; and all complaints, pleadings and other legal documents filed by or against Tenant related to Tenant’s use, handling, storage, release and/or disposal of Hazardous Materials. 
  

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 (d) Landlord and its agents shall have the right, but not the obligation, to inspect, sample and/or
monitor the Premises and/or the soil or groundwater thereunder at any time to determine whether Tenant is complying with the terms of this Section 5.3, and in connection therewith Tenant shall provide Landlord with full access to all relevant
facilities, records and personnel. If Tenant is not in substantial compliance with any of the provisions of this Section 5.3, or in the event of a release of any Hazardous Material on, under or about the Premises caused or permitted by Tenant, its
agents, employees, contractors, licensees or invitees, Landlord and its agents shall have the right, but not the obligation, without limitation upon any of Landlord’s other rights and remedies under this Lease, to enter upon the Premises upon
reasonable notice to Tenant (except in cases of emergency when no notice shall be required), and to discharge Tenant’s obligations under this Section 5.3 at Tenant’s expense, including without limitation the taking of emergency or
long-term remedial action. Landlord and its agents shall endeavor to minimize interference with Tenant’s business in connection therewith, but shall not be liable for any such interference. In addition, Landlord, at Tenant’s expense, shall
have the right, but not the obligation, to join and participate in any legal proceedings or actions initiated in connection with any claims arising out of the storage, generation, use, release and/or disposal by Tenant or its agents, employees,
contractors, licensees or invitees of Hazardous Materials on, under, from or about the Premises. 
  
 (e) If the presence of any Hazardous Materials on, under, from or about the Premises or the Project caused or permitted by Tenant or its agents,
employees, contractors, licensees or invitees results in (i) injury to any person, (ii) injury to or any contamination of the Premises or the Project, or (iii) injury to or contamination of any real or personal property wherever situated, Tenant, at
its expense, shall promptly take all actions necessary to return the Premises and the Project and any other affected real or personal property owned by Landlord to the condition existing prior to the introduction of such Hazardous Materials and to
remedy or repair any such injury or contamination, including without limitation, any cleanup, remediation, removal, disposal, neutralization or other treatment of any such Hazardous Materials. Notwithstanding the foregoing, Tenant shall not, without
Landlord’s prior written consent (which consent shall not be unreasonably withheld), take any remedial action in response to the presence of any Hazardous Materials on, under or about the Premises or the Project or any other affected real or
personal property owned by Landlord or enter into any similar agreement, consent, decree or other compromise with any governmental agency with respect to any Hazardous Materials claims; provided however, Landlord’s prior written consent shall
not be necessary in the event that the presence of Hazardous Materials on, under or about the Premises or the Project or any other affected real or personal property owned by Landlord (i) imposes an immediate threat to the health, safety or welfare
of any individual or (ii) is of such a nature that an immediate remedial response is necessary and it is not possible to obtain Landlord’s consent before taking such action. To the fullest extent permitted by law, Tenant shall indemnify, hold
harmless, protect and defend (with attorneys reasonably acceptable to Landlord) Landlord and any successors to all or any portion of Landlord’s interest in the Premises and the Project and any other real or personal property owned by Landlord
from and against any and all liabilities, losses, damages, diminution in value, judgments, fines, demands, claims, recoveries, deficiencies, costs and expenses (including without limitation attorneys’ fees, court costs and other professional
expenses), whether foreseeable or unforeseeable, arising directly or indirectly out of the use, generation, storage, treatment, release, on- or off-site disposal or transportation of Hazardous Materials on, into, from, under or about the Premises,
the Building and the Project and any other real or personal property owned by Landlord caused or permitted by Tenant, its agents, employees, contractors, licensees or invitees, specifically including without limitation the cost of any required or
necessary repair, restoration, cleanup or detoxification of the Premises, the Building and the Project and any other real or personal property owned by Landlord, and the preparation of any closure or other required plans, whether or not such action
is required or necessary during the Term or after the expiration of this Lease. If Landlord at any time discovers that Tenant or its agents, employees, contractors, licensees or invitees may have caused or permitted the release of a Hazardous
Material on, under, from or about the Premises or the Project or any other real or personal property owned by Landlord, Tenant shall, at Landlord’s request, immediately prepare and submit to Landlord a comprehensive plan, subject to
Landlord’s approval (which approval shall not be unreasonably withheld), specifying the actions to be taken by Tenant to return the Premises or the Project or any other real or personal property owned by Landlord to the condition existing prior
to the introduction of such Hazardous Materials. Upon Landlord’s approval of such cleanup plan, Tenant shall, at its expense, and without limitation of any rights and remedies of Landlord under this Lease or at law or in equity, immediately
implement such plan and proceed to cleanup such Hazardous Materials in accordance with all applicable laws and as required by such plan and this Lease. The provisions of this subsection (e) shall expressly survive the expiration or sooner
termination of this Lease. 
  
 (f) Landlord hereby discloses to
Tenant, and Tenant hereby acknowledges, certain facts relating to Hazardous Materials at the Project known by Landlord to exist as of the date of this Lease, as more particularly described in Exhibit C attached hereto. Tenant shall have no
liability or responsibility with respect to the Hazardous Materials facts described in Exhibit C, nor with respect to any Hazardous Materials which Tenant proves were not caused or permitted by Tenant, its agents, employees, contractors,
licensees or invitees. Notwithstanding the preceding two sentences, Tenant agrees to notify its agents, employees, contractors, licensees, and invitees of any exposure or potential exposure to Hazardous Materials at the Premises that Landlord brings
to Tenant’s attention. 
  
 ARTICLE VI. COMMON AREAS; SERVICES

  
 SECTION 6.1. UTILITIES AND SERVICES. Tenant shall be
responsible for and shall pay promptly, directly to the appropriate supplier, all charges for water, gas, electricity, sewer, heat, light, power, telephone, refuse pickup, janitorial service, interior landscape maintenance and all other utilities,
materials and services furnished directly to Tenant or the Premises or used by Tenant in, on or about the Premises during the Term, together with any taxes thereon. If any utilities or services are not separately metered or assessed to Tenant,
Landlord shall make a reasonable 

  

 9 

 
determination of Tenant’s proportionate share of the cost of such utilities and services and Tenant shall pay such amount to Landlord, as an item of
additional rent, within ten (10) days after receipt of Landlord’s statement or invoice therefor. Alternatively, Landlord may elect to include such cost in the definition of Project Costs in which event Tenant shall pay Tenant’s
proportionate share of such costs in the manner set forth in Section 4.2. Landlord shall not be liable for damages or otherwise for any failure or interruption of any utility or other service furnished to the Premises, and no such failure or
interruption shall be deemed an eviction or entitle Tenant to terminate this Lease or withhold or abate any rent due hereunder. Landlord shall at all reasonable times have reasonable access to all electrical and mechanical installations of Landlord.

  
 Notwithstanding the foregoing, if as a result of the direct
actions of Landlord, its employees, contractors or authorized agents, for more than three (3) consecutive business days following written notice to Landlord there is no HVAC or electricity services to all or a portion of the Premises, or such an
interruption of other essential utilities and building services, such as fire protection or water, so that all or a portion of the Premises cannot be used by Tenant, then Tenant’s Basic Rent (or an equitable portion of such Basic Rent to the
extent that less than all of the Premises are affected) shall thereafter be abated until the Premises are again usable by Tenant; provided, however, that if Landlord is diligently pursuing the repair of such utilities or services and Landlord
provides substitute services reasonably suitable for Tenant’s purposes, as for example, bringing in portable air-conditioning equipment, then there shall not be an abatement of Basic Rent. The foregoing provisions shall be Tenant’s sole
recourse and remedy in the event of such an interruption of services, and shall not apply in case of the actions of parties other than Landlord, its employees, contractors or authorized agents, or in the case of damage to, or destruction of, the
Premises (which shall be governed by the provisions of Article XI of the Lease). Any disputes concerning the foregoing provisions shall be submitted to and resolved by JAMS arbitration pursuant to Section 22.7 of this Lease. 
  
 SECTION 6.2. OPERATION AND MAINTENANCE OF COMMON AREAS. During the Term,
Landlord shall operate all Common Areas within the Building and the Project. The term “Common Areas” shall mean all areas within the exterior boundaries of the Building and other buildings in the Project which are not held for exclusive
use by persons entitled to occupy space, and all other appurtenant areas and improvements provided by Landlord for the common use of Landlord and tenants and their respective employees and invitees, including without limitation parking areas and
structures, driveways, sidewalks, landscaped and planted areas, hallways and interior stairwells not located within the premises of any tenant, common electrical rooms and roof access entries, common entrances and lobbies, elevators, and restrooms
not located within the premises of any tenant. 
  
 SECTION 6.3.
USE OF COMMON AREAS. The occupancy by Tenant of the Premises shall include the use of the Common Areas in common with Landlord and with all others for whose convenience and use the Common Areas may be provided by Landlord, subject, however, to
compliance with all rules and regulations as are prescribed from time to time by Landlord. Landlord shall operate and maintain the Common Areas in the manner Landlord may determine to be appropriate but consistent with a “first class”
research and development business park. All costs incurred by Landlord for the maintenance and operation of the Common Areas shall be included in Project Costs unless any particular cost incurred can be charged to a specific tenant of the Project.
Landlord shall at all times during the Term have exclusive control of the Common Areas, and may restrain any use or occupancy, except as authorized by Landlord’s rules and regulations. Tenant shall keep the Common Areas clear of any obstruction
or unauthorized use related to Tenant’s operations. Landlord may temporarily close any portion of the Common Areas for repairs, remodeling and/or alterations, to prevent a public dedication or the accrual of prescriptive rights, or for any
other reason deemed sufficient by Landlord, without liability to Landlord, so long as Tenant is not deprived of reasonable access to the Premises. 
  
 SECTION 6.4. PARKING. Tenant shall be entitled to the number of vehicle parking spaces set forth in Item 14 of the Basic Lease Provisions, which spaces
shall be unreserved and unassigned (except that four (4) of such spaces in a location designated by Landlord shall be marked as “Visitor”), on those portions of the Common Areas designated by Landlord for parking. Tenant shall not use more
parking spaces than such number. All parking spaces shall be used only for parking by vehicles no larger than full size passenger automobiles or pickup trucks. Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant
or Tenant’s employees, suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for such activities. If Tenant permits or allows any of the prohibited activities described
above, then Landlord shall have the right, without notice, in addition to such other rights and remedies that Landlord may have, to remove or tow away the vehicle involved and charge the costs to Tenant. Parking within the Common Areas shall be
limited to striped parking stalls, and no parking shall be permitted in any driveways, access ways or in any area which would prohibit or impede the free flow of traffic within the Common Areas. There shall be no overnight parking of any vehicles of
any kind unless otherwise authorized by Landlord, and vehicles which have been abandoned or parked in violation of the terms hereof may be towed away at the owner’s expense. Nothing contained in this Lease shall be deemed to create liability
upon Landlord for any damage to motor vehicles of visitors or employees, for any loss of property from within those motor vehicles, or for any injury to Tenant, its visitors or employees, unless ultimately determined to be caused by the sole active
negligence or willful misconduct of Landlord. Landlord shall have the right to establish, and from time to time amend, and to enforce against all users all reasonable rules and regulations (including the designation of areas for employee parking)
that Landlord may deem necessary and advisable for the proper and efficient operation and maintenance of parking within the Common Areas. Landlord shall have the right to construct, maintain and operate lighting facilities within the parking areas;
to change the area, level, location and arrangement of the parking areas and improvements therein; to restrict parking by tenants, their officers, agents and employees to employee parking areas; to enforce parking charges (by operation of meters or
otherwise); and to do and perform such other acts in and to the parking areas and improvements therein as, in the use of good business judgment, Landlord shall determine to be advisable. Any person using the parking area shall observe all
directional signs and arrows and any posted speed limits. 

  

 10 

 
In no event shall Tenant interfere with the use and enjoyment of the parking area by other tenants of the Building or their employees or invitees. Parking
areas shall be used only for parking vehicles. Washing, waxing, cleaning or servicing of vehicles, or the storage of vehicles for 24-hour periods, is prohibited unless otherwise authorized by Landlord. Tenant shall be liable for any damage to the
parking areas caused by Tenant or Tenant’s employees, suppliers, shippers, customers or invitees, including without limitation damage from excess oil leakage. Tenant shall have no right to install any fixtures, equipment or personal property in
the parking areas. 
  
 SECTION 6.5. CHANGES AND ADDITIONS BY
LANDLORD. Landlord reserves the right to make alterations or additions to the Building or the Project, or to the attendant fixtures, equipment and Common Areas. Landlord may at any time relocate or remove any of the various buildings, parking areas,
and other Common Areas, and may add buildings and areas to the Project from time to time. No change shall entitle Tenant to any abatement of rent or other claim against Landlord, provided that the change does not deprive Tenant of reasonable access
to, use or enjoyment of the Premises. 
  
 ARTICLE VII. MAINTAINING
THE PREMISES 
  
 SECTION 7.1. TENANT’S MAINTENANCE AND
REPAIR. Tenant at its sole expense shall make all repairs necessary to keep the Premises in the condition as existed on the Commencement Date, excepting ordinary wear and tear, including without limitation all glass, windows, doors, door closures,
hardware, fixtures, electrical, plumbing, fire extinguisher equipment and other equipment, but excepting structural portions or structural elements of the Building. Any damage or deterioration of the Premises shall not be deemed ordinary wear and
tear if the same could have been prevented by good maintenance practices by Tenant. As part of its maintenance obligations hereunder, Tenant shall, at Landlord’s reasonable request, provide Landlord with copies of all maintenance schedules,
reports and notices prepared by, for or on behalf of Tenant. All repairs shall be at least equal in quality to the original work, shall be made only by a licensed contractor approved in writing in advance by Landlord (which approval shall not be
unreasonably withheld or delayed) and shall be made only at the time or times reasonably approved by Landlord. Any contractor utilized by Tenant shall be subject to Landlord’s standard requirements for contractors, as modified from time to time
and disclosed to Tenant. Landlord may impose reasonable restrictions and requirements with respect to repairs, as provided in Section 7.3, and the provisions of Section 7.4 shall apply to all repairs. Alternatively, Landlord may elect to make
any such repair on behalf of Tenant and at Tenant’s expense, and Tenant shall promptly reimburse Landlord for all reasonable costs incurred upon submission of an invoice. 
  
 SECTION 7.2. LANDLORD’S MAINTENANCE AND REPAIR. Subject to Section 7.1 and Article XI, Landlord shall provide service,
maintenance and repair with respect to the roof, foundations, footings and other structural portions or elements of the Building, all landscaping, walkways, parking areas, Common Areas, exterior lighting, the electrical and mechanical systems and
the air conditioning, ventilating or heating equipment servicing the Premises, and the exterior surfaces of the exterior walls of the Building, except that Tenant at its expense shall make all repairs which Landlord deems reasonably necessary as a
result of the act or negligence of Tenant, its agents, employees, invitees, subtenants or contractors. Landlord shall have the right to employ or designate any reputable person or firm, including any employee or agent of Landlord or any of
Landlord’s affiliates or divisions, to perform any service, repair or maintenance function. Landlord need not make any other improvements or repairs except as specifically required under this Lease, and nothing contained in this Section shall
limit Landlord’s right to reimbursement from Tenant for maintenance, repair costs and replacement costs as provided elsewhere in this Lease. Tenant understands that it shall not make repairs at Landlord’s expense or by rental offset.
Tenant further understands that Landlord shall not be required to make any repairs to the roof, foundations, footings, structural, electrical or mechanical systems unless and until Tenant has notified Landlord in writing of the need for such repair
and Landlord shall have a reasonable period of time thereafter to commence and complete said repair, if warranted. All costs of any maintenance and repairs on the part of Landlord provided hereunder shall be considered part of Project Costs.

  
 SECTION 7.3. ALTERATIONS. Tenant shall make no alterations,
additions or improvements to the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Tenant may make such alterations, additions or improvements to the Premises
costing less than Twenty Thousand Dollars ($20,000.00) during each calendar year of the Term without Landlord’s consent, provided, however, that any alterations, additions or improvements which change the basic floor plan of the Premises, which
change the structural or mechanical systems of the Premises, or which require a governmental permit as a prerequisite to the construction thereof, shall require Landlord’s prior written consent, which shall not be unreasonably withheld.
Notwithstanding anything to the contrary contained in either of the foregoing sentences, however, no alterations, additions or improvements to the Premises shall: (i) affect the exterior of the Building or outside areas (or be visible from adjoining
sites), or (ii) affect or penetrate any of the structural portions of the Building, including but not limited to the roof, or (iii) require any change to the basic floor plan of the Premises, any change to any structural or mechanical systems of the
Premises, or any governmental permit as a prerequisite to the construction thereof, or (iv) interfere in any manner with the proper functioning of or Landlord’s access to any mechanical, electrical, plumbing or HVAC systems, facilities or
equipment located in or serving the Building, or (v) diminish the value of the Premises. Landlord may impose, as a condition to its consent, any requirements that Landlord in its reasonable discretion may deem reasonable or desirable, including but
not limited to a requirement that all work be covered by a lien and completion bond satisfactory to Landlord and requirements as to the manner, time, and contractor for performance of the work. Tenant shall obtain all required permits for the work
and shall perform the work in compliance with all applicable laws, regulations and ordinances, all covenants, conditions and restrictions affecting the Project, and the Rules and Regulations 

  

 11 

 
(hereafter defined). Tenant understands and agrees that Landlord shall be entitled to a supervision fee in the amount of five percent (5%) of such work
either requiring a permit from the City of San Diego or affecting any mechanical, electrical, plumbing or HVAC systems, facilities or equipment located in or serving the Building. If any governmental entity requires, as a condition to any proposed
alterations, additions or improvements to the Premises by Tenant, that improvements be made to the Common Areas, and if Landlord consents to such improvements to the Common Areas, then Tenant shall, at Tenant’s sole expense, make such required
improvements to the Common Areas in such manner, utilizing such materials, and with such contractors (including, if required by Landlord, Landlord’s contractors) as Landlord may require in its reasonable discretion. Under no circumstances shall
Tenant make any improvement which incorporates any Hazardous Materials, including without limitation asbestos-containing construction materials into the Premises. Any request for Landlord’s consent shall be made in writing and shall contain
architectural plans describing the work in detail reasonably satisfactory to Landlord. Unless Landlord otherwise agrees in writing, all alterations, additions or improvements affixed to the Premises (excluding moveable trade fixtures and furniture)
shall become the property of Landlord and shall be surrendered with the Premises at the end of the Term, except that Landlord may, by notice to Tenant, require Tenant to remove by the Expiration Date, or sooner termination date of this Lease, all or
any alterations, decorations, fixtures, additions, improvements and the like installed either by Tenant or by Landlord at Tenant’s request and to repair any damage to the Premises arising from that removal. Except as otherwise provided in this
Lease or in any Exhibit to this Lease, should Landlord make any alteration or improvement to the Premises for Tenant, Landlord shall be entitled to reimbursement from Tenant for all costs incurred within ten (10) days of written demand from
Landlord. 
  
 SECTION 7.4. MECHANIC’S LIENS. Tenant shall
keep the Premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by or for Tenant. Upon notice from Landlord, Tenant shall promptly cause any such lien to be released by posting a bond in
accordance with California Civil Code Section 3143 or any successor statute. In the event that Tenant shall not, within thirty (30) days following such notice from Landlord of the imposition of any lien, cause the lien to be released of
record by payment or posting of a proper bond, Landlord shall have, in addition to all other available remedies, the right to cause the lien to be released by any means it deems proper, including payment of or defense against the claim giving rise
to the lien. All reasonable expenses so incurred by Landlord, including Landlord’s attorneys’ fees, and any consequential or other damages incurred by Landlord arising out of such lien, shall be reimbursed by Tenant within ten (10)
days of Landlord’s demand, together with interest from the date of payment by Landlord at the maximum rate permitted by law until paid. Tenant shall give Landlord no less than ten (10) days’ prior notice in writing before commencing
construction of any kind on the Premises so that Landlord may post and maintain notices of nonresponsibility on the Premises. 
  
 SECTION 7.5. ENTRY AND INSPECTION. Landlord shall at all reasonable times, during business hours upon at least 24 hours’ written or oral notice
(except in emergencies, when no notice shall be required), have the right to enter the Premises to inspect them, to supply services in accordance with this Lease, to protect the interests of Landlord in the Premises, and to submit the Premises to
prospective or actual purchasers or encumbrance holders (or, during the last one hundred and eighty (180) days of the Term or when an uncured Tenant default exists, to prospective tenants), all without being deemed to have caused an eviction of
Tenant and without abatement of rent except as provided elsewhere in this Lease. Landlord shall have the right, if desired, to retain a key which unlocks all of the doors in the Premises, excluding Tenant’s vaults and safes, and Landlord shall
have the right to use any and all means which Landlord may reasonably deem proper to open the doors in an emergency in order to obtain entry to the Premises, and any entry permitted under this Section 7.5 to the Premises obtained by Landlord shall
not under any circumstances be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or any eviction of Tenant from the Premises. Landlord shall minimize unreasonable interference with Tenant’s business operations and
shall comply with Tenant’s reasonable instructions and security requirements in connection with such entry. 
  
 ARTICLE VIII. TAXES AND ASSESSMENTS ON TENANT’S PROPERTY 
  
 Tenant shall be liable for and shall pay, at least ten (10) days before delinquency, all taxes and assessments levied against all personal property of
Tenant located in the Premises, against all improvements to the Premises made by Landlord or Tenant which are above Landlord’s Project standard in quality and/or quantity for comparable space within the Project (“Above Standard
Improvements”), and against any alterations, additions or like improvements made to the Premises by or on behalf of Tenant. When possible Tenant shall cause its personal property, Above Standard Improvements and alterations to be assessed and
billed separately from the real property of which the Premises form a part. If any taxes on Tenant’s personal property, Above Standard Improvements and/or alterations are levied against Landlord or Landlord’s property and if Landlord pays
the same, or if the assessed value of Landlord’s property is increased by the inclusion of a value placed upon the personal property, Above Standard Improvements and/or alterations of Tenant and if Landlord pays the taxes based upon the
increased assessment, Tenant shall pay to Landlord the taxes so levied against Landlord or the proportion of the taxes resulting from the increase in the assessment. In calculating what portion of any tax bill which is assessed against Landlord
separately, or Landlord and Tenant jointly, is attributable to Tenant’s Above Standard Improvements, alterations and personal property, Landlord’s reasonable determination shall be conclusive. 
  

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 ARTICLE IX. ASSIGNMENT AND SUBLETTING 
  
 SECTION 9.1. RIGHTS OF PARTIES. 
  
 (a) Notwithstanding any provision of this Lease to the contrary, but subject to the provisions of Section 9.4 hereof, Tenant will not, either voluntarily
or by operation of law, assign, sublet, encumber, or otherwise transfer all or any part of Tenant’s interest in this lease, or permit the Premises to be occupied by anyone other than Tenant, without Landlord’s prior written consent, which
consent shall not unreasonably be withheld in accordance with the provisions of Section 9.1(b). No assignment (whether voluntary, involuntary or by operation of law) and no subletting shall be valid or effective without Landlord’s prior written
consent and, at Landlord’s election, any such assignment or subletting or attempted assignment or subletting shall constitute a material default of this Lease. Landlord shall not be deemed to have given its consent to any assignment or
subletting by any other course of action, including its acceptance of any name for listing in the Building directory. To the extent not prohibited by provisions of the Bankruptcy Code, 11 U.S.C. Section 101 et seq. (the “Bankruptcy Code”),
including Section 365(f)(1), Tenant on behalf of itself and its creditors, administrators and assigns waives the applicability of Section 365(e) of the Bankruptcy Code unless the proposed assignee of the Trustee for the estate of the bankrupt meets
Landlord’s standard for consent as set forth in Section 9.1(b) of this Lease. If this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other considerations to be delivered in
connection with the assignment shall be delivered to Landlord, shall be and remain the exclusive property of Landlord and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any person or
entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall be deemed to have assumed all of the obligations arising under this Lease on and after the date of the assignment, and shall upon demand execute and
deliver to Landlord an instrument confirming that assumption. 
  
 (b) If Tenant desires to transfer an interest in this Lease, it shall first notify Landlord of its desire and shall submit in writing to Landlord: (i) the name and address of the proposed transferee; (ii) the nature of any proposed
subtenant’s or assignee’s business to be carried on in the Premises; (iii) the terms and provisions of any proposed sublease or assignment, including a copy of the proposed assignment or sublease form; (iv) evidence of insurance of the
proposed assignee or subtenant complying with the requirements of Exhibit D hereto; (v) a completed Environmental Questionnaire from the proposed assignee or subtenant; and (vi) any other information requested by Landlord and reasonably
related to the transfer. Except as provided in Subsection (c) of this Section, Landlord shall not unreasonably withhold its consent, provided: (1) the use of the Premises will be consistent with the provisions of this Lease and with Landlord’s
commitment to other tenants of the Building and Project; (2) the proposed assignee or subtenant has not been required by any prior landlord, lender or governmental authority to take remedial action in connection with Hazardous Materials
contaminating a property arising out of the proposed assignee’s or subtenant’s actions or use of the property in question and is not subject to any enforcement order issued by any governmental authority in connection with the use, disposal
or storage of a Hazardous Material; (3) at Landlord’s election, insurance requirements shall be brought into conformity with Landlord’s then current leasing practice; (4) any proposed subtenant or assignee demonstrates that it is
financially responsible by submission to Landlord of all reasonable information as Landlord may request concerning the proposed subtenant or assignee, including, but not limited to, a balance sheet of the proposed subtenant or assignee as of a date
within ninety (90) days of the request for Landlord’s consent, statements of income or profit and loss of the proposed subtenant or assignee for the two-year period preceding the request for Landlord’s consent, and/or a certification
signed by the proposed subtenant or assignee that it has not been evicted or been in arrears in rent at any other leased premises for the 3-year period preceding the request for Landlord’s consent; (5) any proposed subtenant or assignee
demonstrates to Landlord’s reasonable satisfaction a record of successful experience in business; (6) the proposed assignee or subtenant is not an existing tenant of the Building or Project or a prospect with whom Landlord is negotiating to
become a tenant at the Building or Project; and (7) the proposed transfer will not impose additional burdens or adverse tax effects on Landlord. If Tenant has any exterior sign rights under this Lease, such rights are personal to Tenant and may not
be assigned or transferred to any assignee of this Lease or subtenant of the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole and absolute discretion. 
  
 If Landlord consents to the proposed transfer, Tenant may within thirty (30)
days after the date of the consent effect the transfer upon the terms described in the information furnished to Landlord; provided that any material change in the terms shall be subject to Landlord’s consent as set forth in this Section.
Landlord shall approve or disapprove any requested transfer within thirty (30) days following receipt of Tenant’s written request, the information set forth above, and the fee set forth below. 
  
 (c) Notwithstanding the provisions of Subsection (b) above, in lieu of
consenting to a proposed assignment of the Lease or to any proposed subletting (or sublettings) in excess of fifty percent (50%) of the rentable floor area of the Premises in the aggregate, Landlord may elect to (i) sublease the Premises (or the
portion proposed to be so subleased), or take an assignment of Tenant’s interest in this Lease, upon the same terms as offered to such proposed subtenant or assignee (excluding terms relating to the purchase of personal property, the use of
Tenant’s name or the continuation of Tenant’s business), or (ii) terminate this Lease (or terminate the Lease as to the portion of the Premises proposed to be so subleased with a proportionate abatement in the rent payable under this
Lease), effective on the date that the assignment or proposed sublease would have become effective. Landlord may thereafter, at its option, assign or re-let any space so recaptured to any third party, including without limitation the proposed
transferee of Tenant. 
  

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 (d) Tenant agrees that fifty percent (50%) of any amounts paid by the assignee or subtenant, however
described, in excess of (i) the Basic Rent payable by Tenant hereunder, or in the case of a sublease of a portion of the Premises, in excess of the Basic Rent reasonably allocable to such portion, plus (ii) Tenant’s direct out-of-pocket costs
which Tenant certifies to Landlord have been paid to provide occupancy related services to such assignee or subtenant of a nature commonly provided by landlords of similar space, shall be the property of Landlord and such amounts shall be payable
directly to Landlord by the assignee or subtenant or, at Landlord’s option, by Tenant. At Landlord’s request, a written agreement shall be entered into by and among Tenant, Landlord and the proposed assignee or subtenant confirming the
requirements of this subsection. 
  
 (e) Tenant shall pay to
Landlord a fee of Five Hundred Dollars ($500.00) if and when any transfer hereunder is requested by Tenant. Such fee is hereby acknowledged as a reasonable amount to reimburse Landlord for its costs of review and evaluation of a proposed
assignee/sublessee, and Landlord shall not be obligated to commence such review and evaluation unless and until such fee is paid. 
  
 SECTION 9.2. EFFECT OF TRANSFER. No subletting or assignment, even with the consent of Landlord, shall relieve Tenant of its obligation to pay rent and to
perform all its other obligations under this Lease. Moreover, Tenant shall indemnify and hold Landlord harmless, as provided in Section 10.3, for any act or omission by an assignee or subtenant. Each assignee, other than Landlord, shall be deemed to
assume all obligations of Tenant under this Lease and shall be liable jointly and severally with Tenant for the payment of all rent, and for the due performance of all of Tenant’s obligations, under this Lease. No transfer shall be binding on
Landlord unless any document memorializing the transfer is delivered to Landlord and both the assignee/subtenant and Tenant deliver to Landlord an executed consent to transfer instrument prepared by Landlord and consistent with the requirements of
this Article. The acceptance by Landlord of any payment due under this Lease from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any transfer. Consent by Landlord to one or more
transfers shall not operate as a waiver or estoppel to the future enforcement by Landlord of its rights under this Lease. 
  
 SECTION 9.3. SUBLEASE REQUIREMENTS. The following terms and conditions shall apply to any subletting by Tenant of all or any part of the Premises and
shall be deemed included in each sublease: 
  
 (a) Each and every
provision contained in this Lease (other than with respect to the payment of rent hereunder) is incorporated by reference into and made a part of such sublease, with “Landlord” hereunder meaning the sublandlord therein and
“Tenant” hereunder meaning the subtenant therein. 
  
 (b) Tenant hereby irrevocably assigns to Landlord all of Tenant’s interest in all rentals and income arising from any sublease of the Premises, and Landlord may collect such rent and income and apply same toward Tenant’s
obligations under this Lease; provided, however, that until a default occurs in the performance of Tenant’s obligations under this Lease, Tenant shall have the right to receive and collect the sublease rentals. Landlord shall not, by reason of
this assignment or the collection of sublease rentals, be deemed liable to the subtenant for the performance of any of Tenant’s obligations under the sublease. Tenant hereby irrevocably authorizes and directs any subtenant, upon receipt of a
written notice from Landlord stating that an uncured default exists in the performance of Tenant’s obligations under this Lease, to pay to Landlord all sums then and thereafter due under the sublease. Tenant agrees that the subtenant may rely
on that notice without any duty of further inquiry and notwithstanding any notice or claim by Tenant to the contrary. Tenant shall have no right or claim against the subtenant or Landlord for any rentals so paid to Landlord. 
  
 (c) In the event of the termination of this Lease, Landlord may, at its sole
option, take over Tenant’s entire interest in any sublease and, upon notice from Landlord, the subtenant shall attorn to Landlord. In no event, however, shall Landlord be liable for any previous act or omission by Tenant under the sublease or
for the return of any advance rental payments or deposits under the sublease that have not been actually delivered to Landlord, nor shall Landlord be bound by any sublease modification executed without Landlord’s consent or for any advance
rental payment by the subtenant in excess of one month’s rent. The general provisions of this Lease, including without limitation those pertaining to insurance and indemnification, shall be deemed incorporated by reference into the sublease
despite the termination of this Lease. 
  
 SECTION 9.4. CERTAIN
TRANSFERS. The sale of all or substantially all of Tenant’s assets (other than bulk sales in the ordinary course of business) or, if Tenant is a corporation, an unincorporated association, or a partnership, the transfer, assignment or
hypothecation of any stock or interest in such corporation, association, or partnership in the aggregate of twenty-five percent (25%) (except for publicly traded shares of stock constituting a transfer of twenty-five percent (25%) or more in the
aggregate, so long as no change in the controlling interest of Tenant occurs as a result thereof) shall be deemed an assignment within the meaning and provisions of this Article; provided, however, that the original issuance of shares of voting
stock to Tenant and/or the transfer of voting shares of stock between Tenant’s existing shareholders or to immediate family members of existing shareholders, including by reason of gift or death, shall not be deemed an assignment within the
meaning and provisions of this Article or require Landlord’s consent. Notwithstanding the foregoing or anything to the contrary contained in this Article IX, Landlord’s consent shall not be required for the subletting of the Premises or
the assignment of this Lease to (i) a subsidiary, affiliate, division or corporation controlling, under common control with or controlled by Tenant, (ii) a successor corporation by merger, consolidation or non-bankruptcy reorganization, or (iii) a
purchaser of all or substantially all of Tenant’s assets (each of the foregoing, a “Permitted Transfer”), so long as (i) the net worth of the successor entity after such Permitted Transfer is at least equal to the greater of the net
worth of Tenant as of the execution of this Lease by Landlord or the net worth of Tenant immediately prior to the date of such Permitted Transfer, evidence of which, satisfactory to Landlord, shall be presented to Landlord prior to such Permitted
Transfer, (ii) Tenant shall provide to Landlord, prior 

  

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to such Permitted Transfer, written notice of such assignment or merger and such reasonable assignment documentation and other information as Landlord may
request in connection therewith, and (iii) all of the other terms and requirements of this Article shall apply with respect to such Permitted Transfer, except for the provisions of Section 9.1 which shall not apply. 
  
 ARTICLE X. INSURANCE AND INDEMNITY 
  
 SECTION 10.1. TENANT’S INSURANCE. Tenant, at its sole cost and expense,
shall provide and maintain in effect the insurance described in Exhibit D. Evidence of that insurance must be delivered to Landlord prior to the Commencement Date. 
  
 SECTION 10.2. LANDLORD’S INSURANCE. Landlord shall provide the following types of insurance, with or without deductible
and in amounts and coverages as may be determined by Landlord in its discretion: “all risk” property insurance, subject to standard exclusions (such as, but not limited to, earthquake and flood exclusions), covering the full replacement
cost of the Building (the “All-Risk Policy”). In addition, Landlord may, at its election, obtain insurance for such other risks as Landlord or its mortgagees may from time to time deem appropriate, including without limitation, coverage
for earthquake, flood and commercial general liability. Landlord shall not be required to carry insurance of any kind on Tenant’s property, including leasehold improvements, trade fixtures, furnishings, equipment, plate glass, signs and all
other items of personal property, and shall not be obligated to repair or replace that property should damage occur. All proceeds of insurance maintained by Landlord upon the Building and Project shall be the property of Landlord, whether or not
Landlord is obligated to or elects to make any repairs. At Landlord’s option, Landlord may self-insure all or any portion of the risks for which Landlord elects or is required to provide insurance hereunder. 
  
 SECTION 10.3. TENANT’S INDEMNITY. To the fullest extent permitted by
law, but except to the extent of the sole active negligence or willful misconduct of Landlord, Tenant shall defend, indemnify, protect, save and hold harmless Landlord, its agents, and any and all affiliates of Landlord, including, without
limitation, any corporations or other entities controlling, controlled by or under common control with Landlord, from and against any and all claims, liabilities, costs or expenses arising either before or after the Commencement Date from
Tenant’s use or occupancy of the Premises, the Building or the Common Areas, or from the conduct of its business, or from any activity, work, or thing done, permitted or suffered by Tenant or its agents, employees, invitees or licensees in or
about the Premises, the Building or the Common Areas, or from any default in the performance of any obligation on Tenant’s part to be performed under this Lease, or from any act or negligence of Tenant or its agents, employees, visitors,
patrons, guests, invitees or licensees. Landlord may, at its option, require Tenant to assume. Landlord’s defense in any action covered by this Section through counsel satisfactory to Landlord. The provisions of this Section shall expressly
survive the expiration or sooner termination of this Lease. 
  
 SECTION 10.4. LANDLORD’S NONLIABILITY. Except to the extent of the sole active negligence or willful misconduct of Landlord, Landlord shall not be liable to Tenant, its employees, agents and invitees, and Tenant hereby waives all
claims against Landlord for loss of or damage to any property or personal injury, or any other loss, cost, damage, injury or liability whatsoever resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak
or flow from or into any part of the Premises or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, electrical works or other fixtures in the Building, whether the damage
or injury results from conditions arising in the Premises or in other portions of the Building. It is understood that any such condition may require the temporary evacuation or closure of all or a portion of the Building. Notwithstanding any
provision of this Lease to the contrary, including, without limitation, the negligence or willful misconduct of Landlord, Landlord shall in no event be liable to Tenant, its employees, agents, and invitees, and Tenant hereby waives all claims
against Landlord, for loss or interruption of Tenant’s business or income (including, without limitation, any consequential damages and lost profit or opportunity costs), or any other loss, cost, damage, injury or liability resulting from, but
not limited to, Acts of God (except with respect to restoration obligations pursuant to Article XI below), acts of civil disobedience or insurrection, acts or omissions (criminal or otherwise) of any third parties (other than Landlord’s
employees or authorized agents), including without limitation, any other tenants within the Project or their agents, employees, contractors, guests or invitees. Except as provided in Sections 11.1 and 12.1 below, there shall be no abatement of rent
and no liability of Landlord by reason of any injury to or interference with Tenant’s business (including without limitation consequential damages and lost profit or opportunity costs) arising from the making of any repairs, alterations or
improvements to any portion of the Building, including repairs to the Premises, nor shall any related activity by Landlord constitute an actual or constructive eviction; provided, however, that in making repairs, alterations or improvements,
Landlord shall interfere as little as reasonably practicable with the conduct of Tenant’s business in the Premises. Neither Landlord nor its agents shall be liable for interference with light or other similar intangible interests. Tenant shall
immediately notify Landlord in case of fire or accident in the Premises, the Building or the Project and of defects in any improvements or equipment. 
  
 SECTION 10.5. WAIVER OF SUBROGATION. Landlord and Tenant each hereby waives all rights of recovery against the other and the other’s agents on
account of loss and damage occasioned to the property of such waiving party to the extent only that such loss or damage is required to be insured against under any “all risk” property insurance policies required by this Article X; provided
however, that (i) the foregoing waiver shall not apply to the extent of Tenant’s obligations to pay deductibles under any such policies and this Lease, and (ii) if any loss is due to the act, omission or negligence or willful misconduct of
Tenant or its agents, employees, contractors, guests or invitees, Tenant’s 

  

 15 

 
liability insurance shall be primary and shall cover all losses and damages prior to any other insurance hereunder. By this waiver it is the intent of the
parties that neither Landlord nor Tenant shall be liable to any insurance company (by way of subrogation or otherwise) insuring the other party for any loss or damage insured against under any “all-risk” property insurance policies
required by this Article, even though such loss or damage might be occasioned by the negligence of such party, its agents, employees, contractors, guests or invitees. The provisions of this Section shall not limit the indemnification provisions
elsewhere contained in this Lease. 
  
 ARTICLE XI. DAMAGE OR
DESTRUCTION 
  
 SECTION 11.1. RESTORATION. 
  
 (a) If the Building of which the Premises are a part is damaged, Landlord
shall repair that damage as soon as reasonably possible, at its expense, unless: (i) Landlord reasonably determines that the cost of repair is not covered by Landlord’s All Risk Policy (whether or not Landlord chooses to self-insure such
coverage) plus such additional amounts Tenant elects, at its option, to contribute, excluding however the deductible (for which Tenant shall be responsible for Tenant’s Share); (ii) Landlord reasonably determines that the Premises cannot, with
reasonable diligence, be fully repaired by Landlord (or cannot be safely repaired because of the presence of hazardous factors, including without limitation Hazardous Materials, earthquake faults, and other similar dangers) within three hundred
sixty (360) days after the date of the damage; (iii) an event of default by Tenant has occurred and is continuing at the time of such damage; or (iv) the damage occurs during the final twelve (12) months of the Term. Should Landlord elect not
to repair the damage for one of the preceding reasons, Landlord shall so notify Tenant in writing within sixty (60) days after the damage occurs and this Lease shall terminate as of the date of that notice. 
  
 (b) Unless Landlord elects to terminate this Lease in accordance with
subsection (a) above, this Lease shall continue in effect for the remainder of the Term; provided that so long as Tenant is not in default under this Lease, if the damage is so extensive that Landlord reasonably determines that the Premises cannot,
with reasonable diligence, be repaired by Landlord (or cannot be safely repaired because of the presence of hazardous factors, earthquake faults, and other similar dangers) so as to allow Tenant’s substantial use and enjoyment of the Premises
within three hundred sixty (360) days after the date of damage, then Tenant may elect to terminate this Lease by written notice to Landlord within the sixty (60) day period stated in subsection (a). 
  
 (c) Commencing on the date of any damage to the Building, and ending on the
sooner of the date the damage is repaired or the date this Lease is terminated, the rental to be paid under this Lease shall be abated in the same proportion that the floor area of the Premises that is rendered unusable by the damage from time to
time bears to the total floor area of the Premises, but only to the extent that any business interruption insurance proceeds are received by Landlord therefor from Tenant’s insurance described in Exhibit D. 
  
 (d) Notwithstanding the provisions of subsections (a), (b) and (c) of this
Section, and subject to the provisions of Section 10.5 above, the cost of any repairs shall be borne by Tenant, and Tenant shall not be entitled to rental abatement or termination rights, if the damage is due to the fault or neglect of Tenant or its
employees, subtenants, invitees or representatives. In addition, the provisions of this Section shall not be deemed to require Landlord to repair any improvements or fixtures that Tenant is obligated to repair or insure pursuant to any other
provision of this Lease. 
  
 (e) Tenant shall fully cooperate with
Landlord in removing Tenant’s personal property and any debris from the Premises to facilitate all inspections of the Premises and the making of any repairs. Notwithstanding anything to the contrary contained in this Lease, if Landlord in good
faith believes there is a risk of injury to persons or damage to property from entry into the Building or Premises following any damage or destruction thereto, Landlord may restrict entry into the Building or the Premises by Tenant, its employees,
agents and contractors in a non-discriminatory manner, without being deemed to have violated Tenant’s rights of quiet enjoyment to, or made an unlawful detainer of, or evicted Tenant from, the Premises. Upon request, Landlord shall consult with
Tenant to determine if there are safe methods of entry into the Building or the Premises solely in order to allow Tenant to retrieve files, data in computers, and necessary inventory, subject however to all indemnities and waivers of liability from
Tenant to Landlord contained in this Lease and any additional indemnities and waivers of liability which Landlord may require. 
  
 SECTION 11.2. LEASE GOVERNS. Tenant agrees that the provisions of this Lease, including without limitation Section 11.1, shall govern any damage or
destruction and shall accordingly supersede any contrary statute or rule of law. 
  
 ARTICLE XII. EMINENT DOMAIN 
  
 SECTION 12.1. TOTAL OR PARTIAL TAKING. If all or a material portion of the Premises is taken by any lawful authority by exercise of the right of eminent domain, or sold to prevent a taking, either Tenant or Landlord may terminate this Lease
effective as of the date possession is required to be surrendered to the authority. In the event title to a portion of the Building or Project, other than the Premises, is taken or sold in lieu of taking, and if Landlord elects to restore the
Building in such a way as to alter the Premises materially, either party may terminate this Lease, by 

  

 16 

 
written notice to the other party, effective on the date of vesting of title. In the event neither party has elected to terminate this Lease as provided
above, then Landlord shall promptly, after receipt of a sufficient condemnation award, restore the Premises to substantially their condition prior to the taking, and a proportionate allowance shall be made to Tenant for the rent corresponding to the
time during which, and to the part of the Premises of which, Tenant is deprived on account of the taking and restoration. In the event of a taking, Landlord shall be entitled to the entire amount of the condemnation award without deduction for any
estate or interest of Tenant; provided that nothing in this Section shall be deemed to give Landlord any interest in, or prevent Tenant from seeking any award against the taking authority for, the taking of personal property and fixtures belonging
to Tenant or for relocation or business interruption expenses recoverable from the taking authority. 
  
 SECTION 12.2. TEMPORARY TAKING. No temporary taking of the Premises shall terminate this Lease or give Tenant any right to abatement of rent, and any
award specifically attributable to a temporary taking of the Premises shall belong entirely to Tenant. A temporary taking shall be deemed to be a taking of the use or occupancy of the Premises for a period of not to exceed ninety (90) days.

  
 SECTION 12.3. TAKING OF PARKING AREA. In the event there shall
be a taking of the parking area such that Landlord can no longer provide sufficient parking to comply with this Lease, Landlord may substitute reasonably equivalent parking in a location reasonably close to the Building; provided that if Landlord
fails to make that substitution within ninety (90) days following the taking and if the taking materially impairs Tenant’s use and enjoyment of the Premises, Tenant may, at its option, terminate this Lease by written notice to Landlord.
If this Lease is not so terminated by Tenant, there shall be no abatement of rent and this Lease shall continue in effect. 
  
 ARTICLE XIII. SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS 
  
 SECTION 13.1. SUBORDINATION. At the option of Landlord, this Lease shall be either superior or subordinate to all ground or underlying leases, mortgages
and deeds of trust, if any, which may hereafter affect the Building, and to all renewals, modifications, consolidations, replacements and extensions thereof; provided, that so long as Tenant is not in default under this Lease, this Lease shall not
be terminated or Tenant’s quiet enjoyment of the Premises disturbed in the event of termination of any such ground or underlying lease, or the foreclosure of any such mortgage or deed of trust, to which Tenant has subordinated this Lease
pursuant to this Section. In the event of a termination or foreclosure, Tenant shall become a tenant of and attorn to the successor-in-interest to Landlord upon the same terms and conditions as are contained in this Lease, and shall execute any
instrument reasonably required by Landlord’s successor for that purpose. Tenant shall also, upon written request of Landlord, execute and deliver all instruments as may be reasonably required from time to time to subordinate the rights of
Tenant under this Lease to any ground or underlying lease or to the lien of any mortgage or deed of trust (provided that such instruments include the nondisturbance and attornment provisions set forth above), or, if requested by Landlord, to
subordinate, in whole or in part, any ground or underlying lease or the lien of any mortgage or deed of trust to this Lease. 
  
 SECTION 13.2. ESTOPPEL CERTIFICATE. 
  
 (a) Tenant shall, at any time upon not less than ten (10) days prior written notice from Landlord, execute, acknowledge and deliver to Landlord, in any
form that Landlord may reasonably require, a statement in writing (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of the modification and certifying that this Lease, as modified, is in
full force and effect) and the dates to which the rental, additional rent and other charges have been paid in advance, if any, and (ii) acknowledging that, to Tenant’s knowledge there are no uncured defaults on the part of Landlord, or
specifying each default if any are claimed, and (iii) setting forth all further information that Landlord may reasonably require. Tenant’s statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the
Building or Project. 
  
 (b) Notwithstanding any other rights and
remedies of Landlord, Tenant’s failure to deliver any estoppel statement within the provided time shall be conclusive upon Tenant that (i) this Lease is in full force and effect, without modification except as may be represented by Landlord,
(ii) there are no uncured defaults in Landlord’s performance, and (iii) not more than one month’s rental has been paid in advance. 
  
 SECTION 13.3 FINANCIALS. 
  
 (a) Tenant shall deliver to Landlord, prior to the execution of this Lease and thereafter at any time upon Landlord’s request (but not more than once
in any calendar year), Tenant’s current tax returns and financial statements, certified true, accurate and complete by the chief financial officer of Tenant, including a balance sheet and profit and loss statement for the most recent prior year
(collectively, the “Statements”), which Statements shall accurately and completely reflect the financial condition of Tenant. Landlord agrees that it will keep the Statements confidential, except that Landlord shall have the right to
deliver the same to any proposed purchaser of the Building or Project, and to any encumbrancer of all or any portion of the Building or Project 
  
 (b) Tenant acknowledges that Landlord is relying on the Statements in its determination to enter into this Lease, and Tenant represents to Landlord, which
representation shall be deemed made on the date of this Lease and again on the Commencement Date, that no material change in the financial condition of Tenant, as reflected in the Statements, has occurred since the date Tenant delivered the
Statements to Landlord. The Statements are represented and warranted by Tenant to be correct and to accurately and fully reflect Tenant’s true financial condition as of the date of submission by any Statements to Landlord. 
  

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 ARTICLE XIV. DEFAULTS AND REMEDIES 
  
 SECTION 14.1. TENANT’S DEFAULTS. In addition to any other event of default set forth in this Lease, the occurrence of
any one or more of the following events shall constitute a default by Tenant: 
  
 (a) The failure by Tenant to make any payment of rent or additional rent required to be made by Tenant, as and when due, where the failure continues for a period of ten (10) days after written notice from Landlord to
Tenant; provided, however, that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 and 1161(a) as amended. For purposes of these default and remedies provisions, the
term “additional rent” shall be deemed to include all amounts of any type whatsoever other than Basic Rent to be paid by Tenant pursuant to the terms of this Lease. 
  
 (b) Assignment, sublease, encumbrance or other transfer of the Lease by Tenant, either voluntarily or by operation of law,
whether by judgment, execution, transfer by intestacy or testacy, or other means, without the prior written consent of Landlord. 
  
 (c) The discovery by Landlord that any financial statement provided by Tenant, or by any affiliate, successor or guarantor of Tenant, was materially
false. 
  
 (d) The failure of Tenant to timely and fully provide
any subordination agreement, estoppel certificate or financial statements in accordance with the requirements of Article XIII. 
  
 (e) The failure or inability by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed or
performed by Tenant, other than as specified in any other subsection of this Section, where the failure continues for a period of thirty (30) days after written notice from Landlord to Tenant or such shorter period as is specified in any other
provision of this Lease; provided, however, that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 and 1161(a) as amended. However, if the nature of the failure is
such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences the cure within thirty (30) days, and thereafter diligently pursues the cure to completion. 

 
 (f) (i) The making by Tenant of any general assignment for the benefit of
creditors; (ii) the filing by or against Tenant of a petition to have Tenant adjudged a Chapter 7 debtor under the Bankruptcy Code or to have debts discharged or a petition for reorganization or arrangement under any law relating to bankruptcy
(unless, in the case of a petition filed against Tenant, the same is dismissed within thirty (30) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of
Tenant’s interest in this Lease, if possession is not restored to Tenant within thirty (30) days; (iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s
interest in this Lease, where the seizure is not discharged within thirty (30) days; or (v) Tenant’s convening of a meeting of its creditors for the purpose of effecting a moratorium upon or composition of its debts. Landlord shall not be
deemed to have knowledge of any event described in this subsection unless notification in writing is received by Landlord, nor shall there be any presumption attributable to Landlord of Tenant’s insolvency. In the event that any provision of
this subsection is contrary to applicable law, the provision shall be of no force or effect. 
  
 SECTION 14.2. LANDLORD’S REMEDIES. 
  
 (a) In the event of any default by Tenant, or in the event of the abandonment of the Premises by Tenant, then in addition to any other remedies available to Landlord, Landlord may exercise the following remedies:

  
 (i) Landlord may terminate Tenant’s right to possession
of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. Such termination shall not affect any accrued obligations of Tenant under this Lease. Upon
termination, Landlord shall have the right to reenter the Premises and remove all persons and property. Landlord shall also be entitled to recover from Tenant: 
  

(1) The worth at the time of award of the unpaid rent and additional rent which had been earned at the time of termination; 
  
 (2) The worth at the time of award of the amount by which fee unpaid rent
and additional rent which would have been earned after termination until the time of award exceeds the amount of such loss that Tenant proves could have been reasonably avoided; 
  
 (3) The worth at the time of award of the amount by which the unpaid rent and additional rent for the balance of the Term
after the time of award exceeds the amount of such loss that Tenant proves could be reasonably avoided; 
  

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 (4) Any other amount necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result from Tenant’s default, including, but not limited to, the cost of recovering possession of the Premises,
refurbishment of the Premises, marketing costs, commissions and other expenses of reletting, including necessary repair, the unamortized portion of any brokerage commissions funded by Landlord in connection with this Lease, reasonable
attorneys’ fees, and any other reasonable costs; and 
  
 (5)
At Landlord’s election, all other amounts in addition to or in lieu of the foregoing as may be permitted by law. The term “rent” as used in this Lease shall be deemed to mean the Basic Rent and all other sums required to be paid by
Tenant to Landlord pursuant to the terms of this Lease. Any sum, other than Basic Rent, shall be computed on the basis of the average monthly amount accruing during the twenty-four (24) month period immediately prior to default, except that if it
becomes necessary to compute such rental before the twenty-four (24) month period has occurred, then the computation shall be on the basis of the average monthly amount during the shorter period. As used in subparagraphs (1) and (2) above, the
“worth at the time of award” shall be computed by allowing interest at the rate of ten percent (10%) per annum. As used in subparagraph (3) above, the “worth at the time of award” shall be computed by discounting the amount at
the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 (ii) Landlord may elect not to terminate Tenant’s right to possession of the Premises, in which event Landlord may continue to enforce all of its
rights and remedies under this Lease, including the right to collect all rent as it becomes due. Efforts by the Landlord to maintain, preserve or relet the Premises, or the appointment of a receiver to protect the Landlord’s interests under
this Lease, shall not constitute a termination of the Tenant’s right to possession of the Premises. In the event that Landlord elects to avail itself of the remedy provided by this subsection (ii), Landlord shall not unreasonably withhold its
consent to an assignment or subletting of the Premises subject to the reasonable standards for Landlord’s consent as are contained in this Lease. 
  
 (b) Landlord shall be under no obligation to observe or perform any covenant of this Lease on its part to be observed or performed which accrues after the
date of any default by Tenant unless and until the default is cured by Tenant, it being understood and agreed that the performance by Landlord of its obligations under this Lease are expressly conditioned upon Tenant’s full and timely
performance of its obligations under this Lease. The various rights and remedies reserved to Landlord in this Lease or otherwise shall be cumulative and, except as otherwise provided by California law, Landlord may pursue any or all of its rights
and remedies at the same time. 
  
 (c) No delay or omission of
Landlord to exercise any right or remedy shall be construed as a waiver of the right or remedy or of any default by Tenant. The acceptance by Landlord of rent shall not be a (i) waiver of any preceding breach or default by Tenant of any provision of
this Lease, other than the failure of Tenant to pay the particular rent accepted, regardless of Landlord’s knowledge of the preceding breach or default at the time of acceptance of rent, or (ii) a waiver of Landlord’s right to exercise any
remedy available to Landlord by virtue of the breach or default. The acceptance of any payment from a debtor in possession, a trustee, a receiver or any other person acting on behalf of Tenant or Tenant’s estate shall not waive or cure a
default under Section 14.1. No payment by Tenant or receipt by Landlord of a lesser amount than the rent required by this Lease shall be deemed to be other than a partial payment on account of the earliest due stipulated rent, nor shall any
endorsement or statement on any check or letter be deemed an accord and satisfaction and Landlord shall accept the check or payment without prejudice to Landlord’s right to recover the balance of the rent or pursue any other remedy available to
it. No act or thing done by Landlord or Landlord’s agents during the Term shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender shall be valid unless in writing and signed by Landlord. No employee
of Landlord or of Landlord’s agents shall have any power to accept the keys to the Premises prior to the termination of this Lease, and the delivery of the keys to any employee shall not operate as a termination of the Lease or a surrender of
the Premises. 
  
 SECTION 14.3. LATE PAYMENTS. 
  
 (a) Any rent due under this Lease that is not received by Landlord within
ten (10) days of the date when due shall bear interest at the maximum rate permitted by law from the date due until fully paid. The payment of interest shall not cure any default by Tenant under this Lease. In addition, Tenant acknowledges that the
late payment by Tenant to Landlord of rent will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult and impracticable to ascertain. Those costs may include, but are not limited to,
administrative, processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any ground lease, mortgage or trust deed covering the Premises. Accordingly, if any rent due from Tenant shall not be received by
Landlord or Landlord’s designee within ten (10) days after the date due, then Tenant shall pay to Landlord, in addition to the interest provided above, a late charge in a sum equal to the greater of five percent (5%) of the amount overdue or
Two Hundred Fifty Dollars ($250.00) for each delinquent payment. Acceptance of a late charge by Landlord shall not constitute a waiver of Tenant’s default with respect to the overdue amount, nor shall it prevent Landlord from exercising any of
its other rights and remedies. 
  
 (b) Following each second
consecutive installment of rent that is not paid within ten (10) days following notice of nonpayment from Landlord, Landlord shall have the option to require that beginning with the first payment of rent next due, rent shall no longer be paid in
monthly installments but shall be payable quarterly three (3) months in advance. Should Tenant deliver to Landlord, at any time during the Term, two (2) or more insufficient checks, the Landlord may require that all monies then and thereafter due
from Tenant be paid to Landlord by cashier’s check. 
  

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 SECTION 14.4. RIGHT OF LANDLORD TO PERFORM. All covenants and agreements to be performed by Tenant under
this Lease shall be performed at Tenant’s sole cost and expense and without any abatement of rent or right of set-off. If Tenant fails to pay any sum of money, other than rent, or fails to perform any other act on its part to be performed under
this Lease, and the failure continues beyond any applicable grace period set forth in Section 14.1, then in addition to any other available remedies, Landlord may, at its election make the payment or perform the other act on Tenant’s part.
Landlord’s election to make the payment or perform the act on Tenant’s part shall not give rise to any responsibility of Landlord to continue making the same or similar payments or performing the same or similar acts. Tenant shall, within
ten (10) days of demand by Landlord, reimburse Landlord for all reasonable sums paid by Landlord and all necessary incidental costs, together with interest at the maximum rate permitted by law from the date of the payment by Landlord. Landlord shall
have the same rights and remedies if Tenant fails to pay those amounts as Landlord would have in the event of a default by Tenant in the payment of rent. 
  
 SECTION 14.5. DEFAULT BY LANDLORD. Landlord shall not be deemed to be in default in the performance of any obligation under this Lease unless and until it
has failed to perform the obligation within thirty (30) days after written notice by Tenant to Landlord specifying in reasonable detail the nature and extent of the failure; provided, however, that if the nature of Landlord’s obligation is such
that more than thirty (30) days are required for its performance, then Landlord shall not be deemed to be in default if it commences performance within the thirty (30) day period and thereafter diligently pursues the cure to completion. 

 
 SECTION 14.6. EXPENSES AND LEGAL FEES. All sums reasonably incurred by
Landlord in connection with any event of default by Tenant under this Lease or holding over of possession by Tenant after the expiration or earlier termination of this Lease, including without limitation all reasonable costs, expenses and actual
accountants, appraisers, attorneys and other professional fees, and any collection agency or other collection charges, shall be due and payable by Tenant to Landlord within ten (10) days of demand, and shall bear interest at the rate of ten percent
(10%) per annum. Should either Landlord or Tenant bring any action in connection with this Lease, the prevailing party shall be entitled to recover as a part of the action its reasonable attorneys’ fees, and all other costs. The prevailing
party for the purpose of this paragraph shall be determined by the trier of the facts. 
  
 SECTION 14.7. WAIVER OF JURY TRIAL. LANDLORD AND TENANT EACH ACKNOWLEDGES THAT IT IS AWARE OF AND HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHTS TO TRIAL BY JURY, AND EACH PARTY DOES HEREBY
EXPRESSLY AND KNOWINGLY WAIVE AND RELEASE ALL SUCH RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER (AND/OR AGAINST ITS OFFICERS, DIRECTORS; EMPLOYEES, AGENTS, OR SUBSIDIARY OR
AFFILIATED ENTITIES) ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM OF INJURY OR DAMAGE. 
  
 SECTION 14.8. SATISFACTION OF JUDGMENT. The obligations of Landlord do not
constitute the personal obligations of the individual partners, trustees, directors, officers or shareholders of Landlord or its constituent partners. Should Tenant recover a money judgment against Landlord, such judgment shall be satisfied only out
of the proceeds of sale received upon execution of such judgment and levied thereon against the right, title and interest of Landlord in the Project and out of the rent or other income from such property receivable by Landlord or out of
consideration received by Landlord from the sale or other disposition of all or any part of Landlord’s right, title or interest in the Project and no action for any deficiency may be sought or obtained by Tenant. 
  
 SECTION 14.9. LIMITATION OF ACTIONS AGAINST LANDLORD. Any claim, demand or
right of any kind by Tenant which is based upon or arises in connection with this Lease shall be barred unless Tenant commences an action thereon within twelve (12) months after the date that the act, omission, event or default upon which the claim,
demand or right arises, has occurred. 
  
 ARTICLE XV. END OF TERM

  
 SECTION 15.1. HOLDING OVER. This Lease shall terminate without
further notice upon the expiration of the Term, and any holding over by Tenant after the expiration shall not constitute a renewal or extension of this Lease, or give Tenant any rights under this Lease, except when in writing signed by both parties.
If Tenant holds over for any period after the expiration (or earlier termination) of the Term without the prior written consent of Landlord, such possession shall constitute a tenancy at sufferance only; such holding over with the prior written
consent of Landlord shall constitute a month-to-month tenancy commencing on the first (1st) day following the termination of this Lease. In either of such events, possession shall be subject to all of the terms of this Lease, except that the monthly
Basic Rent shall be the greater of (a) one hundred fifty percent (150%) of the Basic Rent for the month immediately preceding the date of termination for the initial two (2) months of holdover, and two hundred percent (200%) of the Basic Rent for
month immediately preceding the date of termination for each month of holdover thereafter, or (b) the then currently scheduled Basic Rent for comparable space in the Project. If Tenant fails to surrender the Premises upon the expiration of this
Lease despite demand to do so by Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including without limitation, any claims made by any succeeding tenant relating to such failure to surrender. Acceptance by
Landlord of rent after the termination shall not constitute a consent to a holdover or result in a renewal of this Lease. The foregoing provisions of this Section are in addition to and do not affect Landlord’s right of re-entry or any other
rights of Landlord under this Lease or at law. 
  

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 SECTION 15.2. MERGER ON TERMINATION. The voluntary or other surrender of this Lease by Tenant, or a
mutual termination of this Lease, shall terminate any or all existing subleases unless Landlord, at its option, elects in writing to treat the surrender or termination as an assignment to it of any or all subleases affecting the Premises.

  
 SECTION 15.3. SURRENDER OF PREMISES; REMOVAL OF PROPERTY. Upon
the Expiration Date or upon any earlier termination of this Lease, Tenant shall quit and surrender possession of the Premises to Landlord in as good order, condition and repair as when received or as hereafter may be improved by Landlord or Tenant,
reasonable wear and tear and repairs which are Landlord’s obligation excepted, and shall, without expense to Landlord, remove or cause to be removed from the Premises all personal property, improvements constructed by Tenant that Landlord
require be removed in accordance with the terms of this Lease, and debris, except for any items or improvements that Landlord may by written authorization allow to remain. Tenant shall repair all damage to the Premises resulting from the removal,
which repair shall include the patching and filling of holes and repair of structural damage, provided that Landlord may instead elect to repair any structural damage at Tenant’s expense. If Tenant shall fail to comply with the provisions of
this Section, Landlord may effect the removal and/or make any repairs, and the reasonable costs incurred by Landlord shall be additional rent payable by Tenant within ten (10) days of demand. If Tenant fails to remove Tenant’s personal property
from the Premises upon the expiration of the Term, Landlord may remove, store, dispose of and/or retain such personal property, at Landlord’s option, in accordance with then applicable laws, all at the expense of Tenant. If requested by
Landlord, Tenant shall execute, acknowledge and deliver to Landlord an instrument in writing releasing and quitclaiming to Landlord all right, title and interest of Tenant in the Premises. 
  
 ARTICLE XVI. PAYMENTS AND NOTICES 
  
 All sums payable by Tenant to Landlord shall be paid, without deduction or
offset, in lawful money of the United States to Landlord at its address set forth in Item 12 of the Basic Lease Provisions, or at any other place as Landlord may designate in writing. Unless this Lease expressly provides otherwise, as for example in
the payment of rent pursuant to Section 4.1, all payments shall be due and payable within five (5) days after demand. All payments requiring proration shall be prorated on the basis of a thirty (30) day month and a three hundred sixty (360) day
year. Any notice, election, demand, consent, approval or other communication to be given or other document to be delivered by either party to the other may be delivered in person or by courier or overnight delivery service to the other party, or may
be deposited in the United States mail, duly registered or certified, postage prepaid, return receipt requested, and addressed to the other party at the address set forth in Item 12 of the Basic Lease Provisions, or if to Tenant, at that address or,
from and after the Commencement Date, at the Premises (whether or not Tenant has departed from, abandoned or vacated the Premises), or may be delivered by telegram, telex or telecopy, provided that receipt thereof is telephonically confirmed. Either
party may, by written notice to the other, served in the manner provided in this Article, designate a different address. If any notice or other document is sent by mail, it shall be deemed served or delivered twenty-four (24) hours after mailing. If
more than one person or entity is named as Tenant under this Lease, service of any notice upon any one of them shall be deemed as service upon all of them. 
  
 ARTICLE XVII. RULES AND REGULATIONS 
  
 Tenant agrees to observe faithfully and comply strictly with the Rules and Regulations, attached as Exhibit E, and any reasonable and
nondiscriminatory amendments, modifications and/or additions as may be reasonably adopted and published by written notice not less than ten (10) days prior to their effective date to tenants by Landlord for the safety, care, security, good order, or
cleanliness of the Premises, Building, Project and Common Areas. Landlord shall not be liable to Tenant for any violation of the Rules and Regulations or the breach of any covenant or condition in any lease by any other tenant or such tenant’s
agents, employees, contractors, guests or invitees. One or more waivers by Landlord of any breach of the Rules and Regulations by Tenant or by any other tenant(s) shall not be a waiver of any subsequent breach of that rule or any other.
Tenant’s failure to keep and observe the Rules and Regulations shall constitute a default under this Lease. In the case of any conflict between the Rules and Regulations and this Lease, this Lease shall be controlling. 
  
 ARTICLE XVIII. BROKER’S COMMISSION 
  
 The parties recognize as the broker(s) who negotiated this Lease the firm(s),
if any, whose name(s) is (are) stated in Item 10 of the Basic Lease Provisions, and agree that Landlord shall be responsible for the payment of brokerage commissions to those broker(s) unless otherwise provided in this Lease. Tenant warrants that it
has had no dealings with any other real estate broker or agent in connection with the negotiation of this Lease, and Tenant agrees to indemnify and hold Landlord harmless from any cost, expense or liability (including reasonable attorneys’
fees) for any compensation, commissions or charges claimed by any other real estate broker or agent employed or claiming to represent or to have been employed by Tenant in connection with the negotiation of this Lease. The foregoing agreement shall
survive the termination of this Lease. 
  

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 ARTICLE XIX. TRANSFER OF LANDLORD’S INTEREST 
  
 In the event of any transfer of Landlord’s interest in the Premises, the
transferor shall be automatically relieved of all obligations on the part of Landlord accruing under this Lease from and after the date of the transfer, provided that any funds held by the transferor in which Tenant has an interest shall be turned
over, subject to that interest, to the transferee and Tenant is notified of the transfer as required by law. No holder of a mortgage and/or deed of trust to which this Lease is or may be subordinate, and no landlord under a so-called sale-leaseback,
shall be responsible in connection with the Security Deposit, unless the mortgagee or holder of the deed of trust or the landlord actually receives the Security Deposit. It is intended that the covenants and obligations contained in this Lease on
the part of Landlord shall, subject to the foregoing, be binding on Landlord, its successors and assigns, only during and in respect to their respective successive periods of ownership. 
  
 ARTICLE XX. INTERPRETATION 
  
 SECTION 20.1. GENDER AND NUMBER. Whenever the context of this Lease requires, the words “Landlord” and “Tenant” shall include the
plural as well as the singular, and words used in neuter, masculine or feminine genders shall include the others. 
  
 SECTION 20.2. HEADINGS. The captions and headings of the articles and sections of this Lease are for convenience only, are not a part of this Lease and
shall have no effect upon its construction or interpretation. 
  
 SECTION 20.3. JOINT AND SEVERAL LIABILITY. If more than one person or entity is named as Tenant, the obligations imposed upon each shall be joint and several and the act of or notice from, or notice or refund to, or the signature of, any
one or more of them shall be binding on all of them with respect to the tenancy of this Lease, including, but not limited to, any renewal, extension, termination or modification of this Lease. 
  
 SECTION 20.4. SUCCESSORS. Subject to Articles IX and XIX, all rights
and liabilities given to or imposed upon Landlord and Tenant shall extend to and bind their respective heirs, executors, administrators, successors and assigns. Nothing contained in this Section is intended, or shall be construed, to grant to any
person other than Landlord and Tenant and their successors and assigns any rights or remedies under this Lease. 
  
 SECTION 20.5. TIME OF ESSENCE. Time is of the essence with respect to the performance of every provision of this Lease. 
  
 SECTION 20.6. CONTROLLING LAW. This Lease shall be governed by and
interpreted in accordance with the laws of the State of California. 
  
 SECTION 20.7. SEVERABILITY. If any term or provision of this Lease, the deletion of which would not adversely affect the receipt of any material benefit by either party or the deletion of which is consented to by the party adversely
affected, shall be held invalid or unenforceable to any extent, the remainder of this Lease shall not be affected and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. 
  
 SECTION 20.8. WAIVER AND CUMULATIVE REMEDIES. One or more waivers by Landlord
or Tenant of any breach of any term, covenant or condition contained in this Lease shall not be a waiver of any subsequent breach of the same or any other term, covenant or condition. Consent to any act by one of the parties shall not be deemed to
render unnecessary the obtaining of that party’s consent to any subsequent act. No breach by Tenant of this Lease shall be deemed to have been waived by Landlord unless the waiver is in a writing signed by Landlord. The rights and remedies of
Landlord under this Lease shall be cumulative and in addition to any and all other rights and remedies which Landlord may have. 
  
 SECTION 20.9. INABILITY TO PERFORM. In the event that either party shall be delayed or hindered in or prevented from the performance of any work or in
performing any act required under this Lease by reason of any cause beyond the reasonable control of that party, then the performance of the work or the doing of the act shall be excused for the period of the delay and the time for performance shall
be extended for a period equivalent to the period of the delay. The provisions of this Section shall not operate to excuse Tenant from the prompt payment of rent or from the timely performance of any other obligation under this Lease within
Tenant’s reasonable control. 
  
 SECTION 20.10. ENTIRE
AGREEMENT. This Lease and its exhibits and other attachments cover in full each and every agreement of every kind between the parties concerning the Premises, the Building, and the Project, and all preliminary negotiations, oral agreements,
understandings and/or practices, except those contained in this Lease, are superseded and of no further effect. Tenant waives its rights to rely on any representations or promises made by Landlord or others which are not contained in this Lease. No
verbal agreement or implied covenant shall be held to modify the provisions of this Lease, any statute, law, or custom to the contrary notwithstanding. 
  
 SECTION 20.11. QUIET ENJOYMENT. Upon the observance and performance of all the covenants, terms and conditions on Tenant’s part to be observed and
performed, and subject to the other provisions of this Lease, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term without hindrance or interruption by Landlord or any other person claiming by or through Landlord. 

 

 22 

 SECTION 20.12. SURVIVAL. All covenants of Landlord or Tenant which reasonably would be intended to
survive the expiration or sooner termination of this Lease, including without limitation any warranty or indemnity hereunder, shall so survive and continue to be binding upon and inure to the benefit of the respective parties and their successors
and assigns. 
  
 ARTICLE XXI. EXECUTION AND RECORDING 

 
 SECTION 21.1. COUNTERPARTS. This Lease may be executed in one or more
counterparts, each of which shall constitute an original and all of which shall be one and the same agreement. 
  
 SECTION 21.2. CORPORATE AND PARTNERSHIP AUTHORITY. If Tenant is a corporation or partnership, each individual executing this Lease on behalf of the
corporation or partnership represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of the corporation or partnership, and that this Lease is binding upon the corporation or partnership in accordance with its
terms. Tenant shall, within ten (10) days of Landlord’s request, deliver a certified copy of its board of directors’ resolution or partnership agreement or certificate authorizing or evidencing the execution of this Lease. 
  
 SECTION 21.3. EXECUTION OF LEASE; NO OPTION OR OFFER. The submission of this
Lease to Tenant shall be for examination purposes only, and shall not constitute an offer to or option for Tenant to lease the Premises. Execution of this Lease by Tenant and its return to Landlord shall not be binding upon Landlord, notwithstanding
any time interval, until Landlord has in fact executed and delivered this Lease to Tenant, it being intended that this Lease shall only become effective upon execution by Landlord and delivery of a fully executed counterpart to Tenant. 

 
 SECTION 21.4. RECORDING. Tenant shall not record this Lease without the
prior written consent of Landlord. Tenant, upon the request of Landlord, shall execute and acknowledge a “short form” memorandum of this Lease for recording purposes. 
  
 SECTION 21.5. AMENDMENTS. No amendment or termination of this Lease shall be effective unless in writing signed by
authorized signatories of Tenant and Landlord, or by their respective successors in interest. No actions, policies, oral or informal arrangements, business dealings or other course of conduct by or between the parties shall be deemed to modify this
Lease in any respect. 
  
 SECTION 21.6. EXECUTED COPY. Any fully
executed photocopy or similar reproduction of this Lease shall be deemed an original for all purposes. 
  
 SECTION 21.7. ATTACHMENTS. All exhibits, amendments, riders and addenda attached to this Lease are hereby incorporated into and made a part of this Lease.

  
 ARTICLE XXII. MISCELLANEOUS 
  
 SECTION 22.1. NONDISCLOSURE OF LEASE TERMS. Tenant acknowledges and agrees
that the terms of this Lease are confidential and constitute proprietary information of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord’s relationship with other
tenants. Accordingly, Tenant agrees that it, and its partners, officers, directors, employees and attorneys, shall not intentionally and voluntarily disclose the terms and conditions of this Lease to any other tenant or apparent prospective tenant
of the Building or Project, either directly or indirectly, without the prior written consent of Landlord, provided, however, that Tenant may disclose the terms to prospective subtenants or assignees under this Lease. 
  
 SECTION 22.2. GUARANTY. As a condition to the execution of this Lease by
Landlord, the obligations, covenants and performance of the Tenant as herein provided shall be guaranteed in writing by the Guarantor(s) listed in Item 7 of the Basic Lease Provisions, if any, on a form of guaranty provided by Landlord. 

 
 SECTION 22.3. CHANGES REQUESTED BY LENDER. If, in connection with
obtaining financing for the Project, the lender shall request reasonable modifications in this Lease as a condition to the financing, Tenant will not unreasonably withhold or delay its consent, provided that the modifications do not materially
increase the obligations of Tenant or materially and adversely affect the leasehold interest created by this Lease. 
  
 SECTION 22.4. MORTGAGEE PROTECTION. No act or failure to act on the part of Landlord which would otherwise entitle Tenant to be relieved of its
obligations hereunder or to terminate this Lease shall result in such a release or termination unless (a) Tenant has given notice by registered or certified mail to any beneficiary of a deed of trust or mortgage covering the Building whose address
has been furnished to Tenant and (b) such beneficiary is afforded a reasonable opportunity to cure the default by Landlord (which in no event shall be less than sixty (60) days), including, 

  

 23 

 
if necessary to effect the cure, time to obtain possession of the Building by power of sale or judicial foreclosure provided that such foreclosure remedy is
diligently pursued. Tenant agrees that each beneficiary of a deed of trust or mortgage covering the Building is an express third party beneficiary hereof, Tenant shall have no right or claim for the collection of any deposit from such beneficiary or
from any purchaser at a foreclosure sale unless such beneficiary or purchaser shall have actually received and not refunded the deposit, and Tenant shall comply with any written directions by any beneficiary to pay rent due hereunder directly to
such beneficiary without determining whether an event of default exists under such beneficiary’s deed of trust. 
  
 SECTION 22.5. COVENANTS AND CONDITIONS. All of the provisions of this Lease shall be construed to be conditions as well as covenants as though the words
specifically expressing or imparting covenants and conditions were used in each separate provision. 
  
 SECTION 22.6. SECURITY MEASURES. Tenant hereby acknowledges that Landlord shall have no obligation whatsoever to provide guard service or other security
measures for the benefit of the Premises or the Project. Tenant assumes all responsibility for the protection of Tenant, its agents, invitees and property from acts of third parties. Nothing herein contained shall prevent Landlord, at its sole
option, from providing security protection for the Project or any part thereof, in which event the cost thereof shall be included within the definition of Project Costs. 
  
 SECTION 22.7 JAMS. 
  
 (a) All claims or disputes between Landlord and Tenant arising out of, or relating to the Lease which either party is expressly authorized by a provision
hereof to submit to arbitration, shall be decided by the JAMS/ENDISPUTE, or its successor, in Orange, California (“JAMS”), unless the parties mutually agree otherwise. Within ten (10) business days following submission to JAMS, JAMS shall
designate three arbitrators and each party may, within five (5) business days thereafter, veto one of the three persons so designated. If two different designated arbitrators have been vetoed, the third arbitrator shall hear and decide the matter.
Any arbitration pursuant to this Section 22.7 shall be decided within thirty (30) days of submission of JAMS. The decision of the arbitrator shall be final and binding on the parties. All costs associated with arbitration shall be awarded to the
prevailing party as determined by the arbitrator. 
  
 (b) Notice
of the demand for arbitration by either party to the Lease shall be filed in writing with the other party to the Lease and with JAMS and shall be made within a reasonable time after the dispute has arisen. The award rendered by the arbitrators shall
be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Except by written consent of the person or entity sought to be joined, no arbitration arising out of or relating to the Lease
shall include, by consolidation, joinder or in any other manner, any person or entity not a party to the Lease under which such arbitration is filed unless (1) such person or entity is substantially involved in a common question of fact or law, (2)
the presence of such person or entity is required if complete relief is to be accorded in the arbitration, or (3) the interest or responsibility of such person or entity in the matter is not insubstantial. 
  
 (c)The agreement herein among the parties to the Lease and any other written
agreement to arbitrate referred to herein shall be specifically enforceable under prevailing law. 
  

							
	LANDLORD:	 	TENANT:
		
	 THE IRVINE COMPANY
 a Delaware
corporation
	 	 CRYOCOR, INC.,
 a Delaware
corporation

  

							
	 By:
	 	 /s/ Robert E. Williams, Jr.,

	 	 By:
	 	 /s/ Gregory M. Ayers

	 	 	 Robert E. Williams, Jr., President
	 	 Name:
	 	Gregory M. Ayers
	 	 	 Irvine Industrial Company,
	 	 Title:
	 	 Pres / CEO

	 	 	 a division of The Irvine Company
	 	 	 	 
				
	 By:
	 	 /s/ Brain R. Schaefgen

	 	 By:
	 	 /s/ Michael R. Warford

	 	 	 Brain R. Schaefgen
	 	 Name:
	 	 Michael R. Warford

	 	 	 Assistant Secretary
	 	 Title:
	 	 VP Finance / CFO

  

 24 

 

 
  
 EXHIBIT A

 FIRST AMENDMENT TO LEASE 
  

	I.	PARTIES AND DATE. 

  
 This First Amendment to Lease (the “Amendment”) dated April 7, 2005, is by and between THE IRVINE COMPANY (“Landlord”), and CRYOCOR,
INC., a Delaware corporation (“Tenant”). 
  

	II.	RECITALS. 

  
 On November 1, 2000, Landlord and Tenant entered into a lease (“Lease”) for space in a building located at 9717 Pacific Heights Blvd., Suite
150, San Diego, California (“Premises”). 
  
 Landlord
and Tenant each desire to modify the Lease to extend the Lease Term, to adjust the Basic Rent, and to make such other modifications as are set forth in “III. MODIFICATIONS” next below. 
  

	III.	MODIFICATIONS. 

  
 A. Basic Lease Provisions. The Basic Lease Provisions are hereby amended as follows: 
  
 1. Item 5 is hereby deleted in its entirety and substituted therefor shall be the following: 
  
 “5. Lease Term: The Term of this Lease shall expire at midnight on
March 31, 2007” 
  
 2. Item 6 is hereby amended by adding
the following: 
  
 “Commencing December 1, 2005, the Basic
Rent shall be Twenty Four Thousand Nine Hundred Forty-Four Dollars ($24,944.00) per month, based on $1.25 per rentable square foot. 
  
 Commencing December 1, 2006, the Basic Rent shall be Twenty Five Thousand Nine Hundred Forty-Two Dollars ($25,942.00) per month, based on $1.30 per
rentable square foot.” 
  
 3. Item 12 is hereby amended by
deleting Landlord’s address for payments and notices and substituted therefor shall be the following: 
  
 “LANDLORD 
  
 THE IRVINE COMPANY 
 550 Newport Center Drive 
 Newport Beach, CA 92660 
 Attn: Senior Vice President, Operations 
 Irvine Office Properties 
  
 with a copy of notices to: 
  
 THE IRVINE COMPANY 
 550 Newport Center Drive 
 Newport Beach, CA 92660 
 Attn: Vice President, Operations 
 Irvine Office Properties, Technology Portfolio”

  

 1 

 B. Letter of Credit. The third sentence of Section 4.4 of the Lease is hereby deleted in its
entirety, and substituted therefor shall be the following: 
  
 “The letter of credit shall provide for automatic annual renewals through that date which is sixty (60) days after the Expiration Date of the Term of the Lease, as same shall be extended by the provisions of this Amendment.”

  
 C. Maintenance and Repair. Sections 7.1 and 7.2 of the
Lease are hereby amended to provide that Landlord’s obligation to provide service, maintenance and repair to air conditioning, heating and ventilating equipment servicing the Premises shall not apply to supplemental HVAC system(s), if any,
installed by Tenant and servicing only the Premises, and that Landlord shall maintain in good repair, as a “Project Cost,” all Building exterior glass. 
  
 D. Acceptance of Premises. Tenant acknowledges that the lease of the Premises pursuant to this Amendment shall be on
an “as-is” basis without further obligation on Landlord’s part as to improvements whatsoever. 
  

	IV.	GENERAL. 

  
 A. Effect of Amendments. The Lease shall remain in full force and effect except to the extent that it is modified by this Amendment. 
  
 B. Entire Agreement. This Amendment embodies the entire understanding
between Landlord and Tenant with respect to the modifications set forth in “III. MODIFICATIONS” above and can be changed only by a writing signed by Landlord and Tenant. 
  
 C. Counterparts. If this Amendment is executed in counterparts, each is hereby declared to be an original; all,
however, shall constitute but one and the same amendment. In any action or proceeding, any photographic, photostatic, or other copy of this Amendment may be introduced into evidence without foundation. 
  
 D. Defined Terms. All words commencing with initial capital letters in
this Amendment and defined in the Lease shall have the same meaning in this Amendment as in the Lease, unless they are otherwise defined in this Amendment. 
  
 E. Corporate and Partnership Authority. If Tenant is a corporation or partnership, or is comprised of either or both of them, each individual
executing this Amendment for the corporation or partnership represents that he or she is duly authorized to execute and deliver this Amendment on behalf of the corporation or partnership and that this Amendment is binding upon the corporation or
partnership in accordance with its terms. 
  
 F.
Attorneys’ Fees. The provisions of the Lease respecting payment of attorneys’ fees shall also apply to this Amendment. 
  

 2 

	V.	EXECUTION. 

  
 Landlord and Tenant executed this Amendment on the date as set forth in “I. PARTIES AND DATE.” above. 
  

							
	 LANDLORD:
	 	 TENANT:

		
	 THE IRVINE COMPANY
	 	 CRYOCOR, INC.,

	 	 	 a Delaware corporation

			
	 /s/ E. Valjean Wheeler

	 	 By
	 	 /s/ Gregory M Ayers

	 E. Valjean Wheeler
	 	 Name
	 	 Gregory M Ayers

	 Exec. Vice President, Asset Management
	 	 Title
	 	 CEO & President

				
	 By
	 	 /s/ Michael T. Bennett

	 	 By
	 	 /s/ Gregory Tibbitts

	 	 	 Michael T. Bennett
	 	 Name
	 	 Gregory Tibbitts

	 	 	 Vice President, Operations
	 	 Title
	 	 CFO

  

 3Contribution Agreement

 Exhibit 10.12 
  
 *** Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) 
 and 230.406 
  
 CONTRIBUTION AGREEMENT 
  
 This Contribution Agreement (this “Agreement”) is entered into as of August 31st, 2000 (the “Effective Date”) by and between CryoCor, Inc., a Delaware corporation (the Company”),
and Cryogen, Inc., a California corporation (“Cryogen”). 
  
 BACKGROUND 
  
 A.
Cryogen desires to provide for the initial capitalization of the Company. 
  
 B. In accordance with the terms and conditions of this Agreement, Cryogen desires to contribute to the Company certain assets and intellectual property rights for the development of products (“Company
Products”) for use in performing cardiac or vascular ablation for the treatment of cardiac arrhythmias in consideration of the issuance by the Company to Cryogen of a specified number of shares of the Company’s Series A Convertible
Preferred Stock (the “Series A Preferred Stock”) and the Company’s Common Stock (the “Common Stock”). 
  
 C. Following the Closing (as hereinafter defined) of the transactions contemplated hereby, Cryogen desires and intends to distribute (the
“Distribution”) the Company Common Shares (as hereinafter defined) and the Company Series A Shares (as hereinafter defined) to its holders of equity securities, including option holders and warrant holders (if an when exercised), in
proportion to their ownership of the common stock and preferred stock of Cryogen, as the case may be, on an as-converted basis. 
  
 D. Simultaneously with the Closing of the transactions contemplated hereby, the Company desires to issue shares of Series B Preferred Stock as set
forth in that certain term sheet (the “Term Sheet”), dated June 16, 2000 between Cryogen and MPM Capital (the “Series B Financing”). 
  
 AGREEMENT 
  
 Now, therefore, in consideration of the foregoing recitals, the mutual promises set forth in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement agree as follows: 
  
 1. AGREEMENT TO ISSUE STOCK AND GRANT RIGHTS. 
  
 1.1 Agreement to Issue Stock. 
  
 (a) Authorization. On the date of the Closing, the Company shall have authorized the issuance, pursuant to the terms and conditions of this
Agreement, of a total of 1,604,166 shares of Common Stock and a total of 5,645,834 shares of Series A Preferred Stock. The Common Stock and the Series A Preferred Stock shall have the rights, preferences, privileges and restrictions as set forth in
the Amended and Restated Certificate of Incorporation of the Company in the form of Exhibit A hereto (the “Restated Certificate”). 
  

 1. 

 (b) Shares. Subject to the terms and conditions of this Agreement, on the date of the Closing,
the Company shall issue to Cryogen, and Cryogen agrees to accept from the Company, (A) 1,604,166 shares of Common Stock (the “Company Common Shares”) and (B) 5,645,834 shares of Series A Preferred Stock (the “Company Series
A Shares;” and together with the Company Common Shares, the “Shares”). 
  
 1.2 Agreement to Contribute Assets and Grant Rights, Etc. 
  

(a) Assets and Other Items to be Contributed and Rights to be Granted by Cryogen. Subject to the terms and conditions of this Agreement, on the
date of the Closing, Cryogen shall: 
  
 (i) sell,
assign, transfer, convey and deliver to the Company all of Cryogen’s right, title and interest in and to the assets, rights and properties set forth on Exhibit B hereto (the “Contributed Assets”) and the clinical
development products set forth on Exhibit E hereto (the “Contributed Clinical Development Products”), free and clear of all liens, encumbrances and security interests; 
  
 (ii) grant a license to the Company (the “License”)
for certain intellectual property rights of Cryogen with respect to the development of the Company Products (the “Licensed Technology”) as set forth in the License Agreement attached hereto as Exhibit C (the “License
Agreement”); 
  
 (iii) enter into a Research and
Development Agreement with the Company substantially in the form attached hereto as Exhibit D (the “Development Agreement;” the License Agreement and the Development Agreement are collectively referred to herein as the
“Related Agreements”); 
  
 (iv) sell,
assign, transfer, convey and deliver to the Company, and the Company shall assume from Cryogen, all of Cryogen’s right, title and interest in and to and all obligations under the agreements and contracts for the production of certain molds
listed on Exhibit F hereto (the “Purchased Molds Contracts”) and the right to delivery of the molds produced thereunder, free and clear of all liens, encumbrances and security interests; and 
  
 (v) sell, assign, transfer, convey and deliver to the Company all of
Cryogen’s right, title and interest in and to the raw materials to be used to develop and manufacture the Company Products (the “Development Raw Materials”), free and clear of all liens, encumbrances and security interests.

  
 2. CLOSING; DELIVERY. 
  
 2.1 Closing. 
  
 (a) Closing. The closing of the transactions contemplated hereby
shall be held at the offices of Brobeck, Phleger & Harrison LLP, 12390 El Camino Real, San Diego, CA 92130 at 11:00 a.m. on August 24, 2000, or at such other time and place as the Company and Cryogen may mutually agree upon (the
“Closing”). 
  

 2. 

 (b) Deliveries. At the Closing, the Company shall deliver to Cryogen certificates representing
the Shares to be issued to Cryogen at the Closing against delivery of a counterpart executed by Cryogen of each of the License Agreement, the Development Agreement and such assignments, bills of sale and other instruments as shall be necessary to
evidence the assignment, transfer, conveyance and delivery to the Company of the Contributed Assets, the Contributed Clinical Development Products, the Purchased Molds Contracts and the Development Raw Materials and the assumption by the Company of
the CryoCor Employee Liabilities (as defined below), the Raw Materials Liability (as defined below), and the liabilities and obligations under the Purchased Mold Contracts (the “Assignment and Assumption Documents”). In addition,
within seven (7) days following the Closing, the Company shall (i) pay the sum of $[...***...] in cash to Cryogen as reimbursement for amounts actually heretofore paid by Cryogen to the vendors of the Purchased Molds Contracts under the terms
of the Purchased Molds Contracts; (ii) pay to Cryogen the purchase price for the Development Raw Materials (estimated as of the date hereof to be approximately $[...***...]) (the “Raw Materials Liability”), which such purchase
price shall be invoiced by Cryogen to the Company promptly after the Closing; and (iii) reimburse Cryogen for the fees, costs and expenses charged by Trinet Employer Group, Inc. (“Trinet”) and actually paid or payable by Cryogen
with respect to each of the CryoCor Employees (as such term is defined in Section 6.3(a) hereof), including, costs and expenses for payroll, payroll taxes, administrative fees, overtime and benefits charged by Trinet, for the period beginning
12:00 p.m. California time on August 4, 2000 through the date of the Closing (the “CryoCor Employee Liabilities”), which such fees, costs and expenses will be invoiced by Cryogen to the Company promptly after the Closing.
Notwithstanding the foregoing, for purposes of this Section 2.1(b), “CryoCor Employees” shall not be deemed to include any CryoCor Employee who elects not to become an employee of the Company. 
  
 3. COMPANY REPRESENTATIONS AND WARRANTIES. The Company hereby
represents and warrants to Cryogen as follows: 
  
 3.1
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own its properties
and assets and to carry on its business as now conducted and as presently proposed to be conducted. The Company has filed to become qualified to transact business as a foreign corporation in the State of California. 
  
 3.2 Power and Capacity; Authorization. The company has the necessary
corporate power and authority to enter into, execute and deliver this Agreement and the Related Agreements, to perform its obligations hereunder and thereunder to consummate the transactions contemplated hereby and thereby. The execution and
delivery of this Agreement and the Related Agreements and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all required corporate action of the Company. This Agreement and the Related
Agreements have been executed and delivered by the Company and constitute legal and binding agreements enforceable against the Company in accordance with their respective terms (subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar laws affecting creditors’ rights, and, with respect to the remedy of specific performance, equitable doctrines applicable thereto). 
  
 * Confidential Treatment Requested 
  

 3. 

 3.3 Capitalization. Immediately prior to the Closing, the authorized capital stock of the Company
consists of the following: 
  
 (a) Common Stock. A total
of 30,000,000 authorized shares of Common Stock, $0.001 par value, none of which are issued and outstanding. 
  
 (b) Preferred Stock. A total of 15,000,000 authorized shares of Preferred Stock, $0.001 par value, 5,645,830 of which are designated Series A
Preferred Stock and none of which are issued and outstanding and 4,861,111 of which are designated Series B Preferred Stock and none of which are issued outstanding. 
  
 (c) Options, Warrants, Reserved Shares. Except as set forth on Schedule 3.3 hereto and for (i) the conversion
privileges of the Series A Preferred Stock to be issued hereunder and the Series B Preferred Stock to be issued pursuant to the Series B Financing and (ii) 1,750,000 shares of Common Stock reserved for issuance under the Company’s 2000 Stock
Option Plan, there are no options, warrants, conversion privileges or other rights, or agreements with respect to the issuance thereof, presently outstanding to purchase any of the capital stock of the Company. 
  
 3.4 Consents; No Conflicts. The execution, delivery and performance of
this Agreement and the Related Agreements by the Company shall not: (a) conflict with or result in a material breach of or default under the Company’s Restated Certificate or Bylaws; (b) result in a violation of any law, rule, ordinance,
regulation, order, judgment or decree by which the Company is bound; or (c) conflict with or result in a material breach of or default under any mortgage, lien, lease, license, permit, agreement, contract or instrument to which the Company is a
party or by which the Company is bound, which conflict, breach or default would have a material adverse effect on the Company’s ability to perform its obligations under this Agreement. 
  
 3.5 Actions and Proceedings. There are no outstanding orders,
judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving the Company. There are no actions, suits or claims or legal, administrative or arbitral proceedings or, to the
Company’s knowledge, investigations (whether or not the defense thereof or liabilities in respect thereof are covered by insurance) pending or, to the Company’s knowledge, threatened against or involving the Company. 
  
 3.6 Valid Issuance of Stock. 
  
 (a) The Shares, when issued, sold and delivered in accordance with
the terms of this Agreement, shall be duly and validly issued, fully paid and non-assessable. 
  
 (b) All outstanding shares of the capital stock of the Company are duly and validly issued, fully paid and non-assessable. 
  
 3.7 Liabilities. Except for indebtedness and reimbursements owed to Cryogen after the Closing as provided in
Section 2.1(b) hereof and amounts payable to the vendors of the Purchased Molds Contracts, the Company has no indebtedness for borrowed money that the Company has directly or indirectly created, incurred, assumed, or guaranteed, or with
respect to which the Company has otherwise become directly or indirectly liable. 
  

 4. 

 3.8 Exempt Offering. Based in part upon on Cryogen’s representations in Section 4, the
offer and sale of the Shares to Cryogen pursuant to this Agreement are exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Act”), by virtue of Section 4(2) thereof and from
the qualification requirements of the California Corporate Securities Law of 1968, as amended, by virtue of Section 25102(f) thereof. 
  
 3.9 Full Disclosure. All documents and other papers delivered by or on behalf of the Company in connection with this Agreement and the transactions
contemplated hereby are true and complete. No representation or warranty of the Company contained in this Agreement, and to the Company’s knowledge, no document or other paper finished by or on behalf of the Company to Cryogen (or any of its
agents) pursuant to this Agreement or in connection with the transactions contemplated hereby, taken as a whole, contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements made, in the context in which made, not false or misleading. 
  
 4. REPRESENTATIONS AND WARRANTIES OF CRYOGEN TO THE COMPANY. Cryogen represents and warrants to the Company as follows: 
  
 4.1 Organization and Qualification. Cryogen is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of California and has all requisite corporate power and authority to own its assets and properties and to carry on its business as now being and as heretofore conducted. 
  
 4.2 Power and Capacity; Authorization. Cryogen has the necessary corporate power and authority to enter into, execute
and deliver this Agreement and the Related Agreements, to perform its obligations hereunder and thereunder to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Related Agreements and
the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all required corporate action of Cryogen. This Agreement and the Related Agreements have been executed and delivered by Cryogen and
constitute legal and binding agreements enforceable against Cryogen in accordance with their respective terms (subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium and similar laws affecting
creditors’ rights, and, with respect to the remedy of specific performance, equitable doctrines applicable thereto). 
  
 4.3 Consents; No Conflicts. Except with respect to that certain Subordinated Loan and Security Agreement dated March 25, 1998 between Cryogen and
Comdisco, Inc. and all instruments executed in connection therewith, that certain Master Lease Agreement dated August 25, 1997 between Cryogen and Comdisco, Inc. and all instruments executed in connection therewith and that certain Master Loan and
Security Agreement dated January 28, 1999 between Cryogen and Lease Management Services, Inc. and all instruments executed in connection therewith (collectively, the “Debt Documents”), with respect to which Cryogen will
obtain waivers and/or consents at or prior to the Closing pursuant to Section 7.1(k) hereof, the execution, delivery and performance of this Agreement and the Related Agreements by Cryogen 

  

 5. 

 
shall not: (a) conflict with or result in a breach of or default under Cryogen’s Articles of Incorporation or Bylaws, as such may have been amended
through the date hereof; (b) result in a violation of any law, rule, ordinance, regulation, order, judgment or decree by which Cryogen is bound; or (c) conflict with or result in a breach of or default under any mortgage, lien, lease, license,
permit, agreement, contract or instrument to which Cryogen is a party or by which Cryogen is bound, which conflict, breach or default would have a material adverse effect on Cryogen’s ability to perform its obligations under this Agreement.

  
 4.4 Actions and Proceedings. There are no outstanding
orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Cryogen with respect to the Licensed Technology. Except as set forth on Schedule 4.4 hereto, there
are no actions, suits or claims or legal, administrative or arbitral proceedings or, to Cryogen’s knowledge, investigations (whether or not the defense thereof or liabilities in respect thereof are covered by insurance) pending or, to
Cryogen’s knowledge, threatened against or involving Cryogen with respect to the Licensed Technology. 
  
 4.5 Intellectual Property. Except for liens and encumbrances arising under the Debt Documents or as otherwise set forth on Schedule 4.5
hereto, Cryogen owns all right, title and interest in and to the Contributed Assets and all of the Licensed Technology to be licensed (or sublicensed) by Cryogen to the Company pursuant to the License Agreement, free and clear of all liens and
encumbrances of third parties. Cryogen has not granted any licenses or other rights to any third party with respect to the Contributed Assets or any Licensed Technology. Except for the matters set forth on Schedule 4.4 hereto, (i) Cryogen has
not received any written notice or claim challenging its rights with respect to the Contributed Assets or any Licensed Technology; (ii) there are no actions, suits, or proceedings pending or, to the knowledge of Cryogen, threatened, based on an
allegation that the use or practice of the Contributed Assets or any of the Licensed Technology by Cryogen infringes or misappropriates the patents, copyrights, trade secrets, trademarks or other intellectual property of any third party; and (iii)
to the knowledge of Cryogen, the use or practice by Cryogen of the Contributed Assets or the Licensed Technology has not infringed or resulted in the misappropriation of any patent, copyright, trade secret or other intellectual property rights of
any third party. 
  
 4.6 Full Disclosure. All documents and
other papers delivered by or on behalf of Cryogen in connection with this Agreement and the transactions contemplated hereby are true and complete. No representation or warranty of Cryogen contained in this Agreement, and to Cryogen’s
knowledge, no document or other paper furnished by or on behalf of Cryogen to the Company (or any of its agents) pursuant to this Agreement or in connection with the transactions contemplated hereby, taken as a whole, contains an untrue statement of
a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made, in the context in which made, not false or misleading. 
  
 4.7 Investment Representations. 
  
 (a) Investigation; Economic Risk. Cryogen acknowledges it has had an opportunity to discuss the business, affairs
and current prospects of the Company with its officers; Cryogen acknowledges having had access to information about the Company that it has requested; and Cryogen acknowledges that it is able to fend for itself in the transactions contemplated by
this Agreement and has the ability to bear the economic risks of its investment pursuant to this Agreement. 
  

 6. 

 (b) Purchase for Own Account. The Shares and any other of the Company’s securities acquired
by Cryogen pursuant to this Agreement shall be acquired for its own account, not as a nominee or agent, and, except in connection with the Distribution (which Distribution Cryogen shall effect in compliance with all applicable federal and state
securities laws, rules and regulations), not with a view to or in connection with the sale or distribution of any part thereof. 
  
 (c) Exempt from Registration; Restricted Securities. Cryogen understands that the Shares and any other of the Company’s securities acquired
by Cryogen pursuant to this Agreement shall not be registered under the Act, on the ground that the sale provided for in this Agreement is exempt from registration under of the Act, and that the reliance of the Company on such exemption is
predicated in part on Cryogen’s representations set forth in this Agreement. In addition, Cryogen shall effect the Distribution in compliance with all applicable federal and state securities laws, rules and regulations. Cryogen understands that
the Shares and any other of the Company’s securities acquired by Cryogen pursuant to this Agreement are restricted securities within the meaning of Rule 144 under the Act. Cryogen further understands that the Shares and any other of the
Company’s securities acquired by Cryogen pursuant to this Agreement are not registered and must be held indefinitely unless they are subsequently registered or an exemption from such registration is available. 
  
 5. AGREEMENTS REGARDING SHARES. The Company and Cryogen agree as
follows: 
  
 5.1 Restrictive Legends. Each certificate
representing the Shares and any other securities issued in respect of any of the foregoing upon any stock split, stock dividend, recapitalization, merger or similar event shall be stamped or otherwise imprinted with a legend substantially in the
following form: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. 
  
 5.2 Removal of Restrictive Legend. The legend set forth above shall be removed by the Company from any certificate evidencing the Shares or any
other of the Company’s securities acquired by Cryogen pursuant to this Agreement upon delivery to the Company of an opinion by counsel, reasonably satisfactory to the Company, if requested by the Company that a registration statement under the
Act is at that time in effect with respect to the legended security or that such security can be freely transferred in a public sale without such a registration statement being in effect and that such transfer shall not jeopardize the exemption or
exemptions from registration pursuant to which the Company issued the Shares. 
  

 7. 

 6. OTHER AGREEMENTS. 
  
 6.1 Further Assurances. From time to time after the Closing, Cryogen shall execute and deliver to the Company such
instruments as may be reasonably requested by the Company in order to more fully implement the transaction contemplated hereby. 
  
 6.2 Confidentiality Obligations. 
  
 (a) Any party to this Agreement (the “Disclosing Party”) may from time to time disclose Confidential Information to the other
party to this Agreement (each a “Recipient”). “Confidential Information” is all nonpublic information concerning the unpatented intellectual property (and any and all rights therein or applications thereof), product
specifications, any and all know-how, methods and processes with respect to products and marketing plans, marketing strategies and general market data of the Disclosing Party which is conveyed to the Recipient orally or in tangible form. Recipient
shall keep in confidence and trust and shall not disclose or disseminate, or permit any employee, agent or other person working under Recipient’s direction to disclose or disseminate, the existence, source, content or substance of any
Confidential Information to any other person or entity. Recipient shall use Confidential Information of the Disclosing Party only as necessary for the performance of this Agreement and the Related Agreements; provided, however, a Recipient may
disclose Confidential Information to one or more potential financing sources upon the prior written consent of the Disclosing Party which consent shall not be unreasonably withheld or delayed. Recipient shall employ at least the same methods and
degree of care, but no less than a reasonable degree of care, to prevent disclosure of the Confidential Information as Recipient employs with respect to its own confidential trade secrets and proprietary information. Recipient’s employees and
independent contractors shall be given access to the Confidential Information only on a need-to-know basis, and only if they have executed a form of nondisclosure agreement with Recipient which imposes a duty to maintain the confidentiality of the
Confidential Information that is at least as restrictive as the terms of this Section 6.2. 
  
 (b) The commitments in this Section 6.2 shall not impose any obligations on Recipient with respect to any portion of the received
information which: (i) is now generally known by or available to the public or which hereafter, through no act or failure to act on the part of Recipient, becomes generally known or available in the public domain; (ii) is furnished to Recipient by a
third party without restriction on disclosure and without a breach by such third party of any confidentiality undertaking with respect thereto; or (iii) is required to be disclosed by operation of law or by an instrumentality of the government,
including but not limited to any court, tribunal or administrative agency; provided that, in the case of any disclosure required by court order, the Recipient shall give the Disclosing Party as much advance notice as is reasonably practicable under
the circumstances so as to permit the Disclosing Party to seek a protective order. 
  
 (c) Other than confidentiality and non-disclosure agreements contained in the Related Agreements, this Section 6.2 terminates and supersedes all confidentiality and 

  

 8. 

 
nondisclosure agreements executed by the parties to this Agreement prior to the date of this Agreement in connection with the transactions contemplated by
this Agreement. The terms of this Section 6.2 shall control in the event of a conflict between this Section 6.2 and the confidentiality and non-disclosure agreements contained in the Related Agreements (or any of them). 
  
 (d) The obligations of the parties hereto under this Section
6.2 shall survive indefinitely. 
  
 6.3
Non-Solicitation. Except for those current Cryogen employees listed on Schedule 6.3 hereto (the “CryoCor Employees”) and [...***...], neither the Company nor any of its Affiliates shall solicit, hire or engage,
whether as an employee, consultant, independent contractor or otherwise, any person who is or was an employee of Cryogen or any of its Affiliates or actively induce or otherwise assist any person or entity in soliciting, hiring or engaging, whether,
as an employee, consultant, independent contractor or otherwise, any person who is or was an employee of Cryogen or any of its Affiliates without the prior written consent of Cryogen; provided, however, that, if (i) any such person has not been so
employed or engaged by Cryogen or any of its Affiliates for a consecutive period of two (2) years or more and (ii) neither the Company nor any of its Affiliates shall have solicited or actively induced or otherwise assisted in soliciting for the
employment or engagement as a consultant or independent contractor of such person while still employed or engaged by Cryogen or any of its Affiliates, then the Company may hire such person without violating the terms of this Section 6.3(a);
and, provided further, that this Section 6.3(a) shall be of no force and effect beginning ninety (90) days after the consummation of a Change of Control of Cryogen. 
  
 (a) Neither Cryogen nor any of its Affiliates shall solicit, hire or engage, whether as an employee, consultant,
independent contractor or otherwise, any of the CryoCor Employees or actively induce or otherwise assist any person or entity in soliciting, hiring or engaging, whether, as an employee, consultant, independent contractor or otherwise, any of the
CryoCor Employees without the prior written consent of the Company; provided, however, that, if (i) any such CryoCor Employee has not been so employed or engaged by the Company or any of its Affiliates for a consecutive period of two (2) years or
more and (ii) neither Cryogen nor any of its Affiliates shall have solicited or actively induced or otherwise assisted in soliciting for the employment or engagement as a consultant or independent contractor of any such CryoCor Employees while still
employed or engaged by the Company or any of its Affiliates, then Cryogen may hire such person without violating the terms of this Section 6.3(b); and, provided further, that this Section 6.3(b) shall be of no force and effect
beginning ninety (90) days after the consummation of a Change of Control of the Company. 
  
 (b) For purposes of this Agreement, “Affiliate” means a corporation, company, or other legal entity now or hereinafter controlling, controlled by or under common control with a party hereto, for so
long as such ownership or control exists. For the purposes of this definition, control shall refer to a greater than 50% interest in the right to make decisions for such entity (e.g., greater than 50% ownership of the voting shares or other voting
securities of such entity). Notwithstanding anything to the contrary contained herein, “Affiliate” shall not include (i) in the case of Cryogen, the Company and (ii) in the case of the Company, Cryogen. For purposes of this Agreement, a
“Change of Control” shall mean: (x) the liquidation, winding 
  
 * Confidential Treatment Requested 
  

 9. 

 up or dissolution of Cryogen: (y) a merger, consolidation, reorganization, recapitalization or other transaction or
series of related transactions which results in the holders of the outstanding voting securities of Cryogen (determined immediately prior to such transaction) owning less than a majority of the outstanding voting securities of the surviving
corporation (determined immediately following such transaction); or (z) any sale or transfer by Cryogen of all or substantially all its assets. 
  
 7. CONDITIONS TO CRYOGEN’S OBLIGATIONS AT THE CLOSING. 
  
 7.1 Conditions to Closing. The obligations of Cryogen under this Agreement are subject to the fulfillment, to the
satisfaction of Cryogen on or prior to the Closing, of the following conditions: 
  
 (a) Representations and Warranties Correct. The representations and warranties made by the Company in Section 3 of this Agreement shall be true and correct when made, and shall be true and correct as of
the date of the Closing with the same force and effect as if they had been made on and as of such date. 
  
 (b) Performance of Obligations. The Company shall have performed and complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before the Closing and shall have obtained all approvals, consents and qualifications necessary to complete the purchase and sale described herein. 
  
 (c) Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory in substance and form to Cryogen, and Cryogen shall have received all such counterpart originals or
certified or other copies of such documents as it may reasonably request. 
  
 (d) Consents and Waivers. The Company shall have obtained any and all consents and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement, including any necessary
governmental or regulatory notices and approvals. 
  
 (e)
Restated Certificate of Incorporation Effective. The Restated Certificate shall have been duly adopted by the Company by all necessary corporate action of the Company’s Board of Directors and stockholders, if any, and shall have been duly
filed with and accepted by the Secretary of State of the State of Delaware. 
  
 (f) Compliance Certificate. At the Closing, the Company shall deliver to Cryogen a certificate, dated the date of Closing, signed by the Company’s Chief Executive Officer certifying that the conditions
specified in Sections 7.1(a) and (b) have been fulfilled. 
  
 (g) Securities Laws. The offer and sale of the Shares to Cryogen at the Closing shall be exempt from the registration requirements of the Act and the registration or qualification requirements of all applicable
state securities laws. 
  

 10. 

 (h) License Agreement. The Company shall have executed and delivered to Cryogen the License
Agreement. 
  
 (i) Development Agreement. The Company
shall have executed and delivered to Cryogen the Development Agreement. 
  
 (j) Series B Financing. The Company shall have completed the Series B Financing on terms and conditions satisfactory to Cryogen. 
  
 (k) Waivers and Consents. Cryogen shall have received consents and waivers from each of Comdisco, Inc. and Lease
Management Services, Inc. with respect to the transactions contemplated hereby and by the Related Agreements. 
  
 8. CONDITIONS TO COMPANY’S OBLIGATIONS AT THE CLOSING. 
  
 8.1 Conditions to Closing. The obligation of the Company to issue Shares at the Closing is subject to the
fulfillment, to the satisfaction of the Company on or prior to the Closing, of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of Cryogen contained in Section 4 shall be true and correct when
made, and shall be true and correct as of the date of the Closing with the same force and effect as if they had been made on and as of such date. 
  
 (b) Restated Certificate of Incorporation Effective. The Restated Certificate shall have been duly adopted by the Company by all necessary
corporate action of the Company Board of Directors and stockholders, if any, and shall have been duly filed with and accepted by the Secretary of State of the State of Delaware. 
  
 (c) Securities Exemptions. The offer and sale of the Shares to Cryogen pursuant to this Agreement shall be exempt
from the registration requirements of the Act and the registration or qualification requirements of all applicable state securities laws. 
  
 (d) Assignment and Assumption Documents. Cryogen shall have executed and delivered to the Company the Assignment and Assumption Documents

  
 (e) License Agreement. Cryogen shall have executed and
delivered to the Company the License Agreement. 
  
 (f)
Development Agreement. Cryogen shall have executed and delivered to the Company the Development Agreement. 
  
 (g) Waivers and Consents. Cryogen shall have received consents and waivers from each of Comdisco, Inc. and Lease Management Services, Inc. with
respect to the transactions contemplated hereby and by the Related Agreements. 
  

 11. 

 9. DISCLAIMERS; LIMITATIONS. 
  
 9.1 NO WARRANTY. EXCEPT AS EXPRESSLY PROVIDED BY CRYOGEN IN SECTION 4, ALL LICENSED TECHNOLOGY SHALL BE
PROVIDED “AS IS,” WITHOUT ANY WARRANTY OF ANY KIND AND CRYOGEN MAKES NO WARRANTIES WITH RESPECT TO THE LICENSED TECHNOLOGY, EITHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT, FITNESS FOR
A PARTICULAR PURPOSE OR VALIDITY OR ENFORCEABILITY OF ANY PATENTS ISSUED OR APPLIED FOR IN CONNECTION WITH THE LICENSED TECHNOLOGY. 
  
 9.2 No Consequential Damages. Liability arising under this Agreement, under any cause of action or theory of liability, other than liability
arising as a result of a party’s obligations under Section 6.2 hereof, shall be limited to direct, objectively measurable damages. EXCEPT AS A RESULT OF THE BREACH OF A PARTY’S OBLIGATIONS SET FORTH IN SECTION 6.2 HEREOF, NO
PARTY SHALL HAVE ANY LIABILITY TO ANY OTHER PARTY OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR SPECULATIVE DAMAGES, INCLUDING, WITHOUT LIMITING THE FOREGOING, LOST PROFITS, LOST DATA, LOSS OF OPPORTUNITY, LOSS OF USE OR COSTS OF
PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, BUSINESS INTERRUPTIONS, AND LOSS OF PROFITS, IRRESPECTIVE OF WHETHER THE PARTY HAS ADVANCE NOTICE OF THE POSSIBILITY OF ANY SUCH DAMAGES. These limitations shall apply notwithstanding the failure of the
essential purpose of any limited remedy. 
  
 10. MISCELLANEOUS.

  
 10.1 Survival. The representations, warranties,
covenants and agreements made herein shall survive any investigation made by any party hereto and the closing of the transactions contemplated hereby. 
  
 10.2 Successors and Assigns. Except as otherwise expressly provided in this Agreement, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties to this Agreement whose rights or obligations hereunder are affected by such amendments. This Agreement and the rights and obligations in it may not
be assigned by any party hereto without the written consent of the other parties hereto. 
  
 10.3 Entire Agreement. This Agreement, together with the Related Agreements, and the schedules and exhibits to this Agreement and the Related Agreements which are hereby expressly incorporated in this Agreement
constitute the entire understanding and agreement between the parties with regard to the subjects hereof and thereof. 
  
 10.4 Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement
shall be in writing and shall be conclusively deemed to have been duly given: (a) when hand delivered to the other party; (b) when received when sent by facsimile at the address set forth below; (c) three (3) business days after deposit in the U.S.
mail with first class or certified mail receipt requested 

  

 12. 

 
postage prepaid and addressed to the other party as set forth below; or (d) the next business day after deposit with a national overnight delivery service,
postage prepaid, addressed to the parties as set forth below with next-business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider. 
  
 To the Company: 
  
 c/o MPM Asset Management LLC 
 601 Gateway Blvd., Suite 300 
 South San Francisco, CA 94080 
 Facsimile: (650) 829-5828 
 Attention: Gregory
M. Ayers, M.D., Ph.D. 
  
 With copies to: 
  
 Gray Cary Ware & Freidenrich LLP 
 4365 Executive Drive, Suite 1600 
 San Diego,
California 92121 
 Facsimile: (858) 677-1477 
 Attention: Paul E. Kreutz, Esq. 
  
 To Cryogen:

  
 Cryogen, Inc. 
 11065 Sorrento Valley Court 
 San Diego,
California 92121 
 Facsimile: (858) 450-3187 
 Attention: President 
  
 With copies to:

  
 Brobeck, Phleger & Harrison LLP 
 12390 El Camino Real 
 San Diego, California
92130 
 Facsimile: (858) 720-2555 
 Attention: Michael S. Kagnoff, Esq. 
  
 Each person making a
communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the
validity of any such communication. A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 10.4 by giving the other party written notice of the new address in the manner set
forth above. 
  
 10.5 Amendments and Waivers. Any term of
this Agreement may be amended only with the written consent of Cryogen and the Company. 
  

 13. 

 10.6 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to
the Company or to Cryogen, upon any breach or default of any party hereto under this Agreement, shall impair any such right, power or remedy of the Company, or Cryogen nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of any similar breach of default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of
the Company or Cryogen of any breach of default under this Agreement or any waiver on the part of the Company or Cryogen of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to the Company or Cryogen shall be cumulative and not alternative. 
  
 10.7 Legal Fees. In the event of any action at law, suit in equity or arbitration proceeding in relation to this
Agreement, the prevailing party, shall be paid by the non-prevailing party a reasonable sum for attorneys’ fees and expenses for such prevailing party. 
  
 10.8 Finder’s Fees. Each party represents and warrants to the other parties to the Agreement that it has retained no finder or broker in
connection with the transactions contemplated by this Agreement. 
  
 10.9 Titles and Subtitles. The titles of the sections, paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
  
 10.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 
  
 10.11 Severability. Should any provision of this Agreement be determined to be illegal or unenforceable, such determination shall not affect the
remaining provisions of this Agreement. 
  
 10.12 Governing
Law; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to conflicts of law principles. Any action or proceeding, however characterized, relating to or
arising out of this Agreement, or in connection with the subject matter hereof shall be maintained in the state or federal courts located in San Diego County, California, and the parties hereto, each for itself, its successors and permitted assigns,
hereby irrevocably submits to the jurisdiction of the courts of the State of California and the Courts of the United States of America sitting in the San Diego County, California for the purposes of any such action or proceeding and irrevocably
agrees to be bound by any judgment rendered thereby in connection with this Agreement. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 13. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year herein above
first written. 
  

			
	“COMPANY”
	
	CRYOCOR, INC.
		
	 By:
	 	 /s/    Gregory M. Ayers

	 Name:
	 	 Gregory M. Ayers

	 Title:
	 	 President & CEO

	
	“CRYOGEN”
	
	CRYOGEN, INC.
		
	 By:
	 	 /s/    David R. Murray

	 Name:
	 	 David R. Murray

	 Title:
	 	 President & CEO

 SCHEDULE 3.3 
  
 CAPITALIZATION 
  
 The Company is entering into an employment agreement with Gregory Ayers which provides for the issuance of an option to purchase up to 700,000 shares of
the Company’s common stock under the Company’s 2000 Stock Option Plan. 
  
 Additionally, the Company plans to extend offer letters to certain potential employees which involve the future issuance of up to 215,000 shares of the Company’s common stock under the Company’s 2000 Stock
Option Plan. 

 SCHEDULE 4.4 
  
 LITIGATION 
  
 [...***...] 
  
 * Confidential Treatment Requested 

 SCHEDULE 4.5 
  
 INTELLECTUAL PROPERTY 
  
 Cryogen is a party to an Exclusive License Agreement with National Institute for Standards and Technology (“NIST”) effective January 27, 1997
(the “NIST License”), a copy of which has been provided to the Company and its counsel. Each of NIST and Cryogen owns an undivided interest in the patent applications and associated patent rights covered by the NIST License and marked with
an asterisk (*) on Exhibit A to the License Agreement. 

 SCHEDULE 6.3 
  
 CRYOCOR EMPLOYEES 
  
 [...***...] 
  
 * Confidential Treatment Requested 

 EXHIBIT B 
  
 LISTING OF ASSETS TRANSFERRED 
  

					
	 Asset Description

	 	 Asset Number

	 	 Asset Source

	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]
	 [...***...]
	 	[...***...]	 	[...***...]

  
 * Confidential
Treatment Requested 
  
  

 EXHIBIT E 
  
 CONTRIBUTED CLINICAL DEVELOPMENT PRODUCTS 
  
 [...***...] 
  
 * Confidential Treatment Requested 

 EXHIBIT F 
  
 PURCHASED MOLDS CONTRACTS 
  
 Contracts, agreements and purchase orders for the production of Purchased Molds, with an outstanding aggregate balance to be paid to such vendors of
$[...***...], between Cryogen and each of the following vendors: 
  
 [...***...] 
  
 * Confidential Treatment Requested

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