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                  REORGANIZATION AND STOCK PURCHASE AGREEMENT

     This REORGANIZATION AND STOCK PURCHASE AGREEMENT dated as of March 10, 2008
(this  "Agreement")  is  by and between Stem Cell Therapy International, Inc., a
Nevada  corporation  ("SCII"),  and  Histostem  Co.,  Ltd.,  a  Korean  Company
("Histostem,"  and  together  with  SCII,  the  "Parties").

WHEREAS,  Histostem  desires  to  acquire  a  controlling  interest of SCII; and

     WHEREAS,  the  Board  of  Directors  of  SCII desire to issue a controlling
interest  of  SCII  to  Histostem;  and

WHEREAS,  SCII  desires to acquire a majority controlling interest in Histostem;
and

WHEREAS,  the  Board  of  Directors  of  Histostem desire to issue a controlling
interest  of  Histostem  to  SCII;  and

     WHEREAS,  the  parties hereto intend that the transaction contemplated here
by  shall  be  completed  as  a  tax-free  exchange  of  stock.

     NOW,  THEREFORE,  The  respective Boards of Directors of Histostem and SCII
deem  it  advisable  and  in  the  best  interests of their corporations and the
respective  shareholders  of  their  corporations  that  Histostem acquire a 60%
controlling  interest  in  the  securities  of  SCII,  and  SCII  acquire  a 95%
controlling  interest  in  the  securities  of Histostem, in accordance with the
terms  and  conditions  of  this  Reorganization  and  Stock Purchase Agreement.

1.     Pre-Closing Actions ofSCII.  Immediately upon execution of this Agreement
       --------------------------
and prior to any Closing as set forth herein, SCII shall undertake the following
actions:

     (a)  The Board  of  Directors  of  SCII  shall  unanimously  approve  and
          deliver  to  Cutler  Law  Group  ("Escrow") in escrow resolutions with
          respect  to  (a)  approving  the  Transactions  set  forth herein; (b)
          increasing or directing the size of the Board of Directors to be seven
          members;  (c)  electing  five  persons  designated by Histostem to the
          Board  of Directors and electing two persons by the current management
          of SCII (), (d) it is understood that there shall be a U.S. operations
          division  with  its  own  budget  as  provided  herein and the current
          management  of  SCII shall appoint the president and other officers of
          the  division  for  U.S.  operations,  no  changes  can be made in the
          management team for U.S. operations without the consent of the current
          majority  shareholders of SCII for a period of 24 months from the date
          of  Closing,  and  (e)  approving  a name change of the corporation to
          Amstem  International  Corp.

     (b)  SCII shall  prepare  and  file  a  14C  Information Statement with the
          US  Securities  and  Exchange  Commission  to  increase the authorized
          common  stock  of SCII to 500,000,000 shares and to change the name of
          the  Company  to  Amstem  International  Corp.

     (c)  SCII shall  issue  and  deliver  to  Cutler  Law  Group as Escrow (the
          "Escrow  Agent")  for  a total of 72,518,053 shares of common stock of
          SCII  for  delivery  to  Histostem  at  closing  (the  "Escrowed  SCII
          Shares").

     (d)  SCII shall  use  its  reasonable  best  efforts  to  prepare  and
          complete  the  documents  necessary  to be filed with local, state and
          federal  authorities  to  consummate  the  transactions  contemplated
          hereby.

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     (e)  SCII shall  issue  and  deliver  to  Cutler  Law  Group  as  Escrow
          1,000,000  shares  each  to  Brian  Lee  and Don Williams for services
          rendered  to  Histostem,  and  2,000,000 shares to Gerald Newman. Such
          shares  shall  be  released  and  delivered  at  Closing.

2.     Pre-Closing  Action  ofHistostem.  Immediately  upon  execution  of  this
       --------------------------------
Agreement  and  prior  to  the  Closing  as  set  forth  herein, Histostem shall
undertake  the  following  actions:

     (a)  The Board  of  Directors  of  Histostem  shall  execute  and  deliver
          resolutions  approving  the  Transactions  set  forth  herein.

     (b)  Histostem  shall  issue  and  deliver  to  Cutler  Law Group as Escrow
          certificates  representing  185,515,696  shares  of  common  stock  of
          Histostem  (the  "Escrowed Histostem Shares"), representing 95% of the
          issued  and  outstanding  equity of Histostem, for delivery to SCII at
          Closing.

     (c)  On or before  March  30,  2008,  and  prior  to  closing,  Histostem
          shall  provide  to  SCII  completed  audited  financial  statements of
          Histostem  in  accordance  with US GAAP and Item 310 of Regulation S-X
          promulgated  by  the US Securities and Exchange Commission, sufficient
          to  file  any  and  all  required  filings  with the US Securities and
          Exchange  Commission  (the  "Histostem  Financial  Statements").

     (d)  Histostem  shall  cooperate  with  its  reasonable  best  efforts  to
          assist  SCII  to  prepare  and  complete the documents necessary to be
          filed  with  local,  state  and  federal authorities to consummate the
          transactions  contemplated  hereby.

     (e)  Histostem  understands  and  agrees  that  in  order for SCII to raise
          capital  to  close  the  transaction  Histostem must provide a current
          business  plan with all relevant information including use of proceeds
          for  the  initial $2,000,000 and a forecast of income and expenses for
          the  next  thirty-six months in quarterly increments (the "Post-Merger
          Business  Plan"), Histostem agrees to deliver the Post-Merger Business
          Plan to SCII no later than March 30, 2008. In the event that Histostem
          is  not  able  to  deliver  the  Post-Merger Business Plan in a timely
          manner  than  the  time  for  closing  shall  be extended accordingly.

3.     Conditions  to  Closing
       -----------------------

The  parties'  obligation  to  close the proposed Acquisition will be subject to
specified  conditions  precedent  including,  but not limited to, the following:

     (a)  the representations  and  warranties  of  Histostem  as  set  forth in
          Section  6  herein shall remain accurate as of the Closing Date and no
          material  adverse  change  in  the  business  of  Histostem shall have
          occurred;

     (b)  the representations  and  warranties  of  SCII  as  set  forth  in
          Section  7  herein shall remain accurate as of the Closing Date and no
          material  adverse  change in the business of SCII shall have occurred;

     (c)  all the  documents  necessary  to  be  filed  with  local,  state  and
          federal  authorities  are  prepared

     (d)  SCII shall  have  provided  the  board  resolutions  and  any  other
          approval  required to complete the board election and the name change.

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     (e)  SCII shall  retain  its  good  standing  as  a publicly traded company
          under  the  Securities  Exchange  Act, trading on the over the counter
          bulletin  board  under  the  symbol  "SCII".

     (f)  Histostem  shall  have  prepared  and  provided  the  Histostem
          Financial  Statements  to  the  reasonable satisfaction of the current
          auditing  firm  and  counsel  for  SCII.

     (g)  Histostem  shall  have  received  funding  at  the  date of the actual
          closing  a  minimum of $2,000,000 towards the Initial Round as defined
          below

4.     At  the  Closing.
       -----------------

     (a)  At the  Closing,  Cutler  Law  Group  shall  release  from  escrow the
          SCII  Board  Resolutions effectuating the election of five new members
          of  the  Board  of Directors. The members of the Board of Directors of
          SCII except for two members prior to Closing shall submit resignations
          at  Closing.

     (b)  At the  Closing,  Cutler  Law  Group  shall  release the Escrowed SCII
          Shares  to  Histostem.

     (c)  At the  Closing,  Cutler  Law  Group  shall  release  the  Escrowed
          Histostem  Shares  to  SCII.

     (d)  At the  Closing,  the  existing  officers  of SCII shall resign and be
          replaced  by  those  officers appointed by the new Board of Directors,
          except that the officers of the country-regionU.S. operations division
          shall  continue to provide services as per their employment agreements
          following  the  closing  and their salaries and expenses shall be paid
          from  the  country-regionplaceU.S.  operations  budget

5.     Timing  of Closing.  The Closing shall occur upon the satisfaction of the
       ------------------
conditions  set  forth  in this Agreement and upon instructions from the parties
hereto  to  the  Escrow  Agent.  The  Closing  Date  shall  occur  on  or before
dateMonth4Day30Year2008April  30,  2008,  unless  the  Escrow  Agent  receives
instructions  otherwise  from  the  parties  or  notice  from  a  party that the
conditions  set  forth  herein have not occurred.  In the event the Closing does
not occur on or before dateMonth5Day30Year2008May 30, 2008, (i) the Escrow Agent
shall  return  the  Escrowed  Histostem  Shares to Histostem and (ii) the Escrow
Agent  shall  return  the  Escrowed  SCII  Shares  to  SCII.

6.     Representations  ofHistostem.  Except  as  set  forth  in  the  Histostem
       -----------------------------
Financial  Statements,  Histostem  represents  and  warrants  as  follows:

     (a)  Ownership  of  Shares.  As  of  the Closing Date, SCII will become the
          owner  of the Escrowed Histostem Shares. The Escrowed Histostem Shares
          will  be  free  from  claims,  liens  or other encumbrances, except as
          provided  under  applicable  federal  and  state  securities  laws;

     (b)  Fully paid  and  Nonassessable.  The  Escrowed  Histostem  Shares
          constitute  duly and validly issued shares of Histostem, and are fully
          paid  and  nonassessable, and Histostem further represents that it has
          the  power  and the authority to execute this Agreement and to perform
          the  obligations  contemplated  hereby;

     (c)  Organization  of  Histostem;  Authorization.  Histostem  is  a
          corporation  duly  organized,  validly  existing  and in good standing
          under  the laws of the Republic of Korea with full corporate power and
          authority  to  execute  and  deliver this Agreement and to perform its
          obligations hereunder. The execution, delivery and performance of this
          Agreement

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<PAGE>
          have  been  duly  authorized  by  all  necessary  corporate  action of
          Histostem  and  this  Agreement  constitutes  a  valid  and  binding
          obligation of Histostem; enforceable against it in accordance with its
          terms.  Histostem  has  no  subsidiaries.

     (d)  Capitalization.  As  of  the  Closing  Date,  Histostem  will  have  a
          total  of 9,763,984 shares of common stock issued and outstanding (not
          including  the  Escrowed  Histostem Shares) and no shares of preferred
          stock issued and outstanding. No shares have otherwise been registered
          under state or federal securities laws. As of the Closing Date, all of
          the  issued  and  outstanding  shares of common stock of Histostem are
          validly  issued, fully paid and non-assessable and there is not and as
          of  the  Closing  Date, except for up to 4,400,000 shares to be issued
          based  on  the direction of the Board of Directors of Histostem, there
          will  not  be outstanding any warrants, options or other agreements on
          the  part  of  Histostem  obligating Histostem to issue any additional
          shares  of  common  or preferred stock or any of its securities of any
          kind.  Histostem  will  not issue any shares of capital stock from the
          date  of  this Agreement through the Closing Date. The Common Stock of
          Histostem  is  presently  trading  on  the  Freeboard  Exchange  in
          country-regionplaceKorea.

     (e)  Ownership  of  Histostem  Shares.  The  delivery  of  certificates
          provided  herein for the Escrowed Histostem Shares will result in SCII
          immediate  acquisition  of  record  and  beneficial  ownership  of the
          Escrowed  Histostem  Shares,  free  and  clear  of  all  encumbrances.

     (f)  No Conflict  as  to  Histostem  and  Subsidiaries.  Neither  the
          execution  and  delivery of this Agreement nor the consummation of the
          exchange of the Histostem Shares will (a) violate any provision of the
          certificate  of  incorporation  or  by-laws  (or  other  governing
          instrument)  of  Histostem  or (b) violate, or be in conflict with, or
          constitute  a default (or an event which, with notice or lapse of time
          or  both,  would  constitute  a  default)  under,  or  result  in  the
          termination  of,  or accelerate the performance required by, or excuse
          performance  by  any  Person of any of its obligations under, or cause
          the  acceleration  of  the maturity of any debt or obligation pursuant
          to,  or  result  in the creation or imposition of any Encumbrance upon
          any  property  or assets of Histostem under, any material agreement or
          commitment  to  which Histostem is a party or by which its property or
          assets  is  bound,  or  to  which  any  of  the  property or assets of
          Histostem  is  subject,  or  (c)  violate  any  statute  or law or any
          judgment,  decree,  order,  regulation  or  rule of any court or other
          Governmental  Body  applicable  to  Histostem  except,  in the case of
          violations,  conflicts,  defaults,  terminations,  accelerations  or
          encumbrances  described in clause (b) of this Section for such matters
          which are not likely to have a material adverse effect on the business
          or  financial  condition  of  Histostem.

     (g)  Consents  and  Approvals  of  Governmental  Authorities.  No  consent,
          approval  or  authorization of, or declaration, filing or registration
          with,  any  Governmental  Body  is  required to be made or obtained by
          Histostem  in  connection with the execution, delivery and performance
          of  this Agreement by Histostem or the consummation of the sale of the
          Escrowed  Histostem  Shares.

     (h)  Other Consents.  No  consent  of  any  Person  is  required  to  be
          obtained  by  Histostem  to the execution, delivery and performance of
          this  Agreement  or  the  consummation  of  the  sale of the Histostem
          Shares, including, but not limited to, consents from parties to leases
          or  other  agreements or commitments, except for any consent which the
          failure  to  obtain  would  not  be  likely to have a material adverse
          effect  on  the  business  and  financial  condition  of  Histostem.

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<PAGE>
     (i)  Litigation.  There  is  no  action,  suit,  inquiry,  proceeding  or
          investigation  by  or before any Court or Governmental body pending or
          threatened  in  writing against or involving Histostem which is likely
          to  have  a  material  adverse  effect  on  the  business or financial
          condition  of Histostem, or which questions or challenges the validity
          of  this Agreement. Histostem is not subject to any judgment, order or
          decree  that  is  likely  to  have  a  material  adverse effect on the
          business  or  financial  condition  of  Histostem.

     (j)  Absence  of  Certain  Changes.  Histostem  has  not:

          1.   suffered  the  damage  or  destruction  of  any of its properties
               or  assets  (whether  or  not  covered  by  insurance)  which  is
               materially  adverse  to  the  business  or financial condition of
               Histostem,  or  made  any  disposition  of  any  of  its material
               properties  or  assets  other  than  in  the  ordinary  course of
               business;

          2.   made any  change  or  amendment  in  its  certificate  of
               incorporation  or  by-laws,  or  other  governing  instruments;

          3.   other than  the  Histostem  Escrowed  Shares  and up to 4,400,000
               share  of  Histostem  common  stock  to  be  issued  based on the
               determination of the Histostem Board of Directors, issued or sold
               any  Equity Securities or other securities, acquired, directly or
               indirectly,  by  redemption  or  otherwise,  any  such  Equity
               Securities,  reclassified, split-up or otherwise changed any such
               Equity  Security,  or  granted  or  entered  into  any  options,
               warrants,  calls or commitments of any kind with respect thereto;

          4.   organized  any  new  Subsidiary  or  acquired  any  Equity
               Securities  of  any Person or any equity or ownership interest in
               any  business;

          5.   borrowed  any  funds  or  incurred,  or assumed or become subject
               to,  whether  directly  or  by way of guarantee or otherwise, any
               obligation or liability with respect to any such indebtedness for
               borrowed  money;

          6.   paid, discharged  or  satisfied  any  material  claim,  liability
               or obligation (absolute, accrued, contingent or otherwise), other
               than  in  the  ordinary  course  of  business;

          7.   prepaid  any  material  obligation  having  a  maturity  of  more
               than  90  days  from  the  date  such  obligation  was  issued or
               incurred;

          8.   cancelled  any  material  debts  or  waived  any  material claims
               or  rights,  except  in  the  ordinary  course  of  business;

          9.   disposed  of  or  permitted  to  lapse  any  rights to the use of
               any material patent or registered trademark or copyright or other
               intellectual  property  owned  or  used  by  it;

          10.  granted  any  general  increase  in  the compensation of officers
               or  employees  (including  any  such  increase  pursuant  to  any
               employee  benefit  plan);

     (k)  Compliance  with  Law.  The  operations  of  Histostem  have  been
          conducted  in  accordance  with all applicable laws and regulations of
          all  Governmental  Bodies  having  jurisdiction  over them, except for
          violations  thereof  which  are  not likely to have a material adverse
          effect  on the business or financial condition of Histostem. Histostem
          has  not  received  any  notification  of any asserted present or past
          failure  by it to comply with any such applicable laws or regulations.
          Histostem has all material licenses, permits, orders or approvals from

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     the  Governmental  Bodies  required for the conduct of its business, and is
     not  in  material  violation  of  any  such  licenses,  permits, orders and
     approvals.  All  such  licenses,  permits, orders and approvals are in full
     force and effect, and no suspension or cancellation of any thereof has been
     threatened.

7.     Representations  ofSCII.  SCII  for their respective rights and interests
       -----------------------
represent  and  warrant  as  follows:

     (a)  Organization;  Authorization.  SCII  is  a  corporation  duly
          organized,  validly  existing  and  in good standing under the laws of
          placeStateNevada  with  full  corporate power and authority to execute
          and  deliver  this Agreement and to perform its obligations hereunder.
          The  execution,  delivery  and performance of this Agreement have been
          duly  authorized  by  all  necessary corporate action of SCII and this
          Agreement  constitutes  a  valid  and  binding obligation; enforceable
          against  in  accordance  with  its  terms.  SCII  has no subsidiaries.

     (b)  Capitalization.  The  authorized  capital  stock  of  SCII consists of
          100,000,000  shares  of  common stock, par value $0.001 per share, and
          10,000,000  shares  of preferred stock, par value $0.001 per share. As
          of  the  date  of this Agreement, SCII has 41,545,269 shares of common
          stock  issued  and  outstanding  and 500,000 shares of preferred stock
          issued and outstanding. No shares have otherwise been registered under
          state  or  federal securities laws. As of the Closing Date, all of the
          issued  and  outstanding  shares  of  common stock of SCII are validly
          issued,  fully  paid  and  non-assessable  and,  except  for 5,300,000
          warrants  currently  outstanding,  there  is not and as of the Closing
          Date  there  will  not  be  outstanding any warrants, options or other
          agreements  on  the  part  of SCII obligating any of SCII to issue any
          additional  shares  of  common  or  preferred  stock  or  any  of  its
          securities of any kind, except for such shares or securities issued in
          conjunction  with  the  raising of the necessary capital called for in
          this Agreement to provide funds for this transaction. The Common Stock
          of  SCII  is  presently trading on the over the counter bulletin board
          under  the  symbol  "SCII".  Upon  completion  of  the  transactions
          contemplated by this Agreement, SCII shall be eligible for application
          and  then  trading  on the American Stock Exchange or the Nasdaq Small
          Cap  market provided that the combined companies meet the share price,
          net  tangible  assets  and  other  requirements  for  such  listing.

     (c)  No Conflict  as  to  SCII  and  Subsidiaries.  Neither  the  execution
          and  delivery  of  this  Agreement  nor  the  consummation  of  the
          transactions contemplated herein will (a) violate any provision of the
          articles  of  incorporation  or  organization  of  SCII  or any of its
          Subsidiaries  or  (b) violate, or be in conflict with, or constitute a
          default  (or  an  event  which,  with notice or lapse of time or both,
          would constitute a default) under, or result in the termination of, or
          accelerate  the  performance required by, or excuse performance by any
          Person  of  any of its obligations under, or cause the acceleration of
          the  maturity  of any debt or obligation pursuant to, or result in the
          creation  or imposition of any Encumbrance upon any property or assets
          of  any  of  SCII  or  any  of  its  Subsidiaries  under, any material
          agreement  or commitment to which any of SCII, any of its Subsidiaries
          is  a  party or by which any of their respective property or assets is
          bound, or to which any of the property or assets of any of SCII or any
          of  its  Subsidiaries is subject, or (c) violate any statute or law or
          any  judgment, decree, order, regulation or rule of any court or other
          Governmental  Body  applicable  to  SCII  or  any  of its Subsidiaries
          except,  in the case of violations, conflicts, defaults, terminations,
          accelerations  or Encumbrances described in clause (b) of this Section
          for  such  matters  which  are  not  likely to have a material adverse
          effect  on  the  business  or  financial  condition  of  SCII  and its
          subsidiaries,  taken  as  a  whole.

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     (d)  Consents  and  Approvals  of  Governmental  Authorities.  No  consent,
          approval  or  authorization of, or declaration, filing or registration
          with, any Governmental Body is required to be made or obtained by SCII
          or any of either of its Subsidiaries in connection with the execution,
          delivery and performance of this Agreement by SCII or the consummation
          of  the  transactions  contemplated  herein.

     (e)  Other Consents.  No  consent  of  any  Person  is  required  to  be
          obtained  by  SCII  to the execution, delivery and performance of this
          Agreement or the consummation of the transactions contemplated herein,
          including,  but  not  limited  to,  consents from parties to leases or
          other  agreements  or  commitments,  except  for any consent which the
          failure  to  obtain  would  not  be  likely to have a material adverse
          effect  on  the  business  and  financial  condition  of  SCII.

     (f)  Buildings,  Plants  and  Equipment.  The  buildings,  plants,
          structures and material items of equipment and other personal property
          owned  or  leased  by  SCII  or  its Subsidiaries are, in all respects
          material  to  the  business  or  financial  condition  of SCII and its
          Subsidiaries, taken as a whole, in good operating condition and repair
          (ordinary  wear  and  tear  excepted)  and  are  adequate  in all such
          respects  for the purposes for which they are being used. SCII has not
          received  notification  that  it  is  in  violation  of any applicable
          building,  zoning,  anti-pollution,  health,  safety  or  other  law,
          ordinance  or  regulation  in  respect  of  its  buildings,  plants or
          structures  or  their  operations, which violation is likely to have a
          material adverse effect on the business or financial condition of SCII
          and  its  Subsidiaries,  taken  as  a  whole  or which would require a
          payment  by SCII or any of its subsidiaries in excess of $2,000 in the
          aggregate,  and  which  has  not  been  cured.

     (g)  No Condemnation  or  Expropriation.  Neither  the  whole  nor  any
          portion  of the property or leaseholds owned or held by SCII or any of
          its  Subsidiaries is subject to any governmental decree or order to be
          sold  or  is  being  condemned, expropriated or otherwise taken by any
          Governmental  Body  or  other  Person  with  or  without  payment  of
          compensation  therefore,  which  action  is  likely to have a material
          adverse  effect on the business or financial condition of SCII and its
          Subsidiaries,  taken  as  a  whole.

     (h)  Litigation.  There  is  no  action,  suit,  inquiry,  proceeding  or
          investigation  by  or before any court or Governmental Body pending or
          threatened  in  writing  against  or  involving  SCII  or  any  of its
          Subsidiaries  which is likely to have a material adverse effect on the
          business  or  financial condition of SCII and any of its Subsidiaries,
          taken  as  whole,  or  which  would  require  a payment by SCII or its
          subsidiaries  in  excess of $2,000 in the aggregate or which questions
          or  challenges the validity of this Agreement. Neither SCII nor any or
          its  Subsidiaries  is subject to any judgment, order or decree that is
          likely  to have a material adverse effect on the business or financial
          condition  of  SCII  or  any of its Subsidiaries, taken as a whole, or
          which would require a payment by SCII or its Subsidiaries in excess of
          $2,000  in  the  aggregate.

     (i)  Absence  of  Certain Changes. Neither SCII nor any of its Subsidiaries
     has:

          1.   suffered  the  damage  or  destruction  of  any of its properties
               or  assets  (whether  or  not  covered  by  insurance)  which  is
               materially adverse to the business or financial condition of SCII
               and  its  Subsidiaries, taken as a whole, or made any disposition
               of  any  of  its  material properties or assets other than in the
               ordinary  course  of  business;

          2.   made any  change  or  amendment  in  its  certificate  of
               incorporation  or  by-laws,  or  other  governing  instruments;

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          3.   paid, discharged  or  satisfied  any  material  claim,  liability
               or obligation (absolute, accrued, contingent or otherwise), other
               than  in  the  ordinary  course  of  business;

          4.   prepaid  any  material  obligation  having  a  maturity  of  more
               than  90  days  from  the  date  such  obligation  was  issued or
               incurred;

          5.   cancelled  any  material  debts  or  waived  any  material claims
               or  rights,  except  in  the  ordinary  course  of  business;

          6.   disposed  of  or  permitted  to  lapse  any  rights to the use of
               any material patent or registered trademark or copyright or other
               intellectual  property  owned  or  used  by  it;

          7.   granted  any  general  increase  in  the compensation of officers
               or  employees  (including  any  such  increase  pursuant  to  any
               employee  benefit  plan);

          8.   purchased  or  entered  into  any  contract  or  commitment  to
               purchase  any  material quantity of raw materials or supplies, or
               sold  or  entered  into  any  contract  or commitment to sell any
               material  quantity  of  property  or  assets,  except  (i) normal
               contracts  or  commitments  for  the  purchase  of,  and  normal
               purchases  of,  raw  materials  or supplies, made in the ordinary
               course  business,  (ii)  normal  contracts or commitments for the
               sale of, and normal sales of, inventory in the ordinary course of
               business,  and  (iii)  other contracts, commitments, purchases or
               sales  in  the  ordinary  course  of  business;

          9.   written  off  or  been  required  to  write  off  any  notes  or
               accounts  receivable  in an aggregate amount in excess of $2,000;

          10.  written  down  or  been  required  to write down any inventory in
               an  aggregate  amount  in  excess  of  $  2,000;

          11.  entered  into  any  collective  bargaining  or  union contract or
               agreement;  or

          12.  other than  the  ordinary  course  of  business,  incurred  any
               liability required by generally accepted accounting principles to
               be  reflected  on a balance sheet and material to the business or
               financial  condition  of  SCII  and their subsidiaries taken as a
               whole.

     (j)  Labor Relations.  Neither  SCII  nor  any  of  its  Subsidiaries  is a
          party  to  any  collective bargaining agreement. Except for any matter
          which  is not likely to have a material adverse effect on the business
          or financial condition of SCII and its Subsidiaries, taken as a whole,
          (a)  SCII  and  its  Subsidiaries is in compliance with all applicable
          laws  respecting  employment  and  employment  practices,  terms  and
          conditions  of  employment  and wages and hours, and is not engaged in
          any  unfair  labor  practice,  (b)  there  is no unfair labor practice
          complaint  against  SCII or any of its Subsidiaries pending before the
          National Labor Relations Board, (c) there is no labor strike, dispute,
          slowdown  or  stoppage  actually pending or threatened against SCII or
          any  of  its  Subsidiaries,  (d)  no  representation  question  exists
          respecting  the  employees  of  SCII  or  any of its Subsidiaries, (e)
          neither  SCII  nor any of its Subsidiaries has experienced any strike,
          work  stoppage  or  other  labor  difficulty,  and  (f)  no collective
          bargaining  agreement  relating  to  employees  of  SCII or any of its
          Subsidiaries  is  currently  being  negotiated.

     (k)  Compliance  with  Law.  The  operations  of  SCII and its Subsidiaries
          have  been  conducted  in  accordance  with  all  applicable  laws and
          regulations  of all Governmental Bodies having jurisdiction over them,
          except  for violations thereof which are not likely to have a material
          adverse  effect on the business or financial condition of SCII and its
          Subsidiaries,  taken  as

                                        8
<PAGE>
          a  whole,  or  which  would  not  require  a  payment  by  SCII or its
          Subsidiaries  in excess of $2,000 in the aggregate, or which have been
          cured.  Neither  SCII  nor  any  of  its Subsidiaries has received any
          notification  of  any asserted present or past failure by it to comply
          with  any  such  applicable  laws  or  regulations.  SCII  and  its
          Subsidiaries  have all material licenses, permits, orders or approvals
          from  the  Governmental  Bodies  required  for  the  conduct  of their
          businesses,  and  are  not in material violation of any such licenses,
          permits,  orders and approvals. All such licenses, permits, orders and
          approvals  are  in  full  force  and  effect,  and  no  suspension  or
          cancellation  of  any  thereof  has  been  threatened.

     (l)  Tax  Matters.

          1.   Each of  SCII  and  its  Subsidiaries  (1)  has  filed  or  shall
               file  prior  to  Closing  all nonconsolidated and noncombined Tax
               Returns and all consolidated or combined Tax Returns that include
               only  SCII  and  not  Histostem  or its other Affiliates (for the
               purposes  of  this  Section, such tax Returns shall be considered
               nonconsolidated and noncombined Tax Returns) required to be filed
               through  the  date  hereof and will have paid any Tax due through
               the  date hereof with respect to the time periods covered by such
               nonconsolidated  and noncombined Tax Returns and shall timely pay
               any  such  Taxes  required to be paid by it after the date hereof
               with respect to such Tax Returns and (2) shall prepare and timely
               file  all  such  nonconsolidated  and  noncombined  Tax  Returns
               required  to  be  filed  after  the  date  hereof and through the
               Closing  Date  and  pay  all Taxes required to be paid by it with
               respect  to the periods covered by such Tax Returns; (B) all such
               Tax  Returns  filed  pursuant to clause (A) after the date hereof
               shall, in each case, be prepared and filed in a manner consistent
               in  all  material  respects  (including  elections and accounting
               methods and conventions) with such Tax Return most recently filed
               in  the relevant jurisdiction prior to the date hereof, except as
               otherwise  required  by  law  or  regulation. Any such Tax Return
               filed  or  required  to  be filed after the date hereof shall not
               reflect  any  new elections or the adoption of any new accounting
               methods  or  conventions  or  other  similar items, except to the
               extent  such  particular  reflection  or  adoption is required to
               comply  with  any  law  or  regulation.

          2.   Each of  SCII  and  its  Subsidiaries  represents  that  prior to
               Closing,  all  consolidated or combined Tax Returns (except those
               described  in subparagraph (1) above) required to be filed by any
               person  through the date hereof that are required or permitted to
               include  the  income,  or  reflect the Activities, operations and
               Transactions, of SCII and its Subsidiaries for any taxable period
               shall  have  been  timely  filed,  and  the  income,  activities,
               operations  and  Transactions  of SCII and its Subsidiaries shall
               have  been  properly included and reflected thereon. SCII and its
               Subsidiaries  shall prepare and file, or cause to be prepared and
               filed,  all  such  consolidated  or combined Tax Returns that are
               required  or  permitted  to  include  the  income, or reflect the
               activities,  operations  and  transactions,  of  SCII  and  its
               Subsidiaries,  with  respect  to  any taxable year or the portion
               thereof  ending  on  or  prior  to  the  Closing Date, including,
               without  limitation, SCII' and Subsidiaries' consolidated federal
               income  tax return for such taxable years. Prior to Closing, SCII
               and  its  Subsidiaries  will  timely  file a consolidated federal
               income  tax  return  for the taxable year ended December 31, 2007
               and such return shall include and reflect the income, activities,
               operations  and transactions of SCII and its Subsidiaries for the
               taxable  period  then  ended,  and hereby expressly covenants and
               agrees  to  file a consolidated federal income tax return, and to
               include  and  reflect  thereon the income, activities, operations
               and  Transactions  of  SCII  and its Subsidiaries for the taxable
               period  through  the Closing Date. All Tax Returns filed pursuant
               to  this  subparagraph  (2)  after the date hereof shall, in each
               case,  to the extent that such Tax Returns specifically relate to
               SCII  and  its  Subsidiaries,  be  prepared and filed in a manner
               consistent  in  all  material  respects  (including elections and
               accounting  methods  and  conventions)  with  the Tax Return most
               recently  filed  in  the  relevant  jurisdictions

                                        9
<PAGE>
               prior  to the date hereof, except as otherwise required by law or
               regulation.  Each  of  SCII and its Subsidiaries has paid or will
               pay  all  Taxes  that may now or hereafter be due with respect to
               the  taxable periods covered by such consolidated or combined Tax
               Returns.

          3.   Neither  SCII  nor  its  Subsidiaries  have  agreed,  or  are
               required,  to make any adjustment (x) under Section 481(a) of the
               Code  by  reason of a change in accounting method or otherwise or
               (y)  pursuant to any provision of the Tax Reform Act of 1986, the
               Revenue  Act  of  1987 or the Technical and Miscellaneous Revenue
               Act  of  1988.

          4.   There is  no  (nor  has  there  been  any  request  for  an)
               agreement,  waiver  or consent providing for an extension of time
               with  respect to the assessment of any Taxes attributable to SCII
               or  its  Subsidiaries, or their assets or operations and no power
               of  attorney  granted by SCII or its Subsidiaries with respect to
               any  Tax  matter  is  currently  in  force.

          5.   There is  no  action,  suit,  proceeding,  investigation,  audit,
               claim,  demand,  deficiency or additional assessment in progress,
               pending  or  threatened  against  or  with  respect  to  any  Tax
               attributable  to  SCII,  its  Subsidiaries  or  their  assets  or
               operations.

          6.   All amounts  required  to  be  withheld  as  of  the Closing Date
               for  Taxes  or  otherwise have been withheld and paid when due to
               the  appropriate  agency  or  authority.

          7.   There shall  be  delivered  or  made  available  to  Histostem at
               or  prior  to  Closing true and complete copies of all income Tax
               Returns (or with respect to consolidated or combined returns, the
               portion thereof) and any other Tax Returns requested by Histostem
               as  may be relevant to SCII, its Subsidiaries, or their assets or
               operations  for  any  and  all  periods ending after December 31,
               2005,  or  for  any  Tax  years  which  are  subject  to audit or
               investigation  by  any  taxing  authority  or  entity.

     (m)  Environmental  Matters.

          1.   At all  times  prior  to  the  date  hereof,  SCII  and  its
               Subsidiaries  have  complied  in  all  material  respects  with
               applicable  environmental  laws,  orders,  regulations, rules and
               ordinances  relating  to the Properties (as hereinafter defined),
               the  violation  of  which would have a material adverse effect on
               the business or financial condition of SCII and its Subsidiaries,
               taken as a whole, or which would require a payment by SCII or its
               Subsidiaries in excess of $2,000 in the aggregate, and which have
               been  duly  adopted,  imposed  or promulgated by any legislative,
               executive,  administrative  or  judicial  body  or officer of any
               Governmental  Body.

          2.   The environmental  licenses,  permits  and  authorizations  that
               are  material  to  the  operations  of SCII and its Subsidiaries,
               taken  as  a  whole,  are  in  full  force  and  effect.

     (n)  Periodic  Reports.  SCII  represents  and  warrants that it is current
          in  all material respects with its filing obligations for periodic and
          other  reports  to  be  filed  with  the  US  Securities  and Exchange
          Commission.

8.     Stock  Market  Application.
       --------------------------

     SCII  is a placeStateNevada public corporation that currently trades on the
over  the  counter bulletin board under the symbol "SCII".  At the earliest date
eligible, SCII agrees to apply for trading to the American Stock Exchange or the
Nasdaq  Small  Cap  Market.

                                       10
<PAGE>
9.     Fundraising.
       -----------

     (a). Fundraising  Goal.  The  fundraising  efforts  to  be  jointly
          undertaken by SCII and Investment Bankers on a best efforts basis will
          attempt  to  achieve  a  total  fund  raising goal of $80,000,000. The
          parties  acknowledge  that  the actual amount of funding in each round
          may  be  affected  by  many  factors outside of the one or more of the
          Parties'  control,  including  the  status  of  the  audited financial
          statements  of  the combined entity, the business plan accomplishments
          of  the  new  entity,  and  changes  in  market  conditions.

     (b). Best Efforts  Basis.  It  is  understood  that the fundraising efforts
          to  be  undertaken  will  be  on a Best Efforts Basis, as that term is
          understood  by  placecountry-regionU.S.  investment bankers and public
          companies  raising  capital

     (c). Source  of  Capital.  The  capital  required  for  operations  by
          Histostem  shall  be  provided  from  newly issued stock of SCII (as a
          combined entity). Any additional capital raised after the first round,
          either  through  debt  or  equity  or  through  any  other  security,
          regardless  of how the capital is raised, shall be disbursed as deemed
          in  the  best  interests  of  the  combined  companies by the Board of
          Directors  and  in  accordance  with  the terms of this Agreement with
          respect  to  providing  a  budget  for  U.S.  operations

     (d).InitialRound.  The  work  for  the  initial  round  of  financing
          commenced  immediately  upon  the  execution  of  a  Memorandum  of
          Understanding  executed  on  dateMonth2Day27Year2008February  27, 2008
          with  respect  to the transactions contemplated by this Agreement, and
          shall  be paid as soon as the funds are available provided that at the
          time  of  paying  the  funds  the  Histostem  Financial Statements are
          complete.  The  initial  round  will  be  undertaken  by  SCII  and  a
          broker-dealer its selects on a best efforts basis for a total of up to
          $5,000,000.  Of  this  amount,  $4,000,000  from  the initial round of
          financing  will  be used by Histostem for immediate operating capital,
          and  $1,000,000  shall  be  used  by  SCII according to a budget to be
          determined  solely  by  the  current  management  of  SCII.

     (e)  First Round.  The  first  round  of  financing  shall occur as soon as
          reasonably possible but no later than six months following the initial
          round  financing,  and  will  be  undertaken by SCII on a best efforts
          basis  for  a  total  of  up  to  $25,000,000,  with  proceeds  to  be
          distributed 60% to Histostem and 40% to SCII as the US parent company,
          whose officers for U.S. operations shall determine the appropriate use
          of  proceeds  with  respect  to  the  40%  of  the  proceeds

     (f). Further  Rounds.  Other  financing  rounds  will  occur,  beginning
          within twelve months following the first round, and will be undertaken
          on  a  best  efforts  basis  for  a overall total of up to $80,000,000
          including  proceeds  from  the  first  two rounds. Proceeds from these
          further rounds will be used by Histostem and SCII for long term growth
          and operations according to a Use of Proceeds statement to be approved
          by  the  Board  of  SCII.

     (g). Limitations  on  Liability  for  Best  Efforts  Financing.  It  is
          understood  that  the  ability  to  obtain  financing  is dependent on
          several  factors  that  are  out  of  the control of Mr. Cao and SCII,
          including  Histostem  successfully  implementing its business plan and
          meeting  its  pro  forma  financial  milestones,  and  current  market
          conditions.  It  is  understood  that  Mr. Cao and SCII shall incur no
          liability  with  respect  to  those  events or the resulting price per
          share.

10.     Antidilution.  For  a  period of twenty-four months from the date of the
        ------------
first  round  of  financing,  the  Parties agree not to attempt or implement any
reverse  splits  or  other  efforts  to  dilute  the  shares  of  the  minority
shareholders  of SCII.  For the purposes of this clause, shares are diluted only
where  such  efforts  result  in  the  reduction  of  the  value  of  the

                                       11
<PAGE>
minority  shareholders' stock.  It is understood that shares are not diluted due
to  stock  issued  in  the  course of the anticipated three rounds of financing.

11.     Consultants.  For  a  period of five years Mr. Newman and Global Capital
        -----------
Corp.  agree to provide ongoing services to SCII in accordance with the terms of
those  certain  Consulting  Agreements  providing  for  payments of $100,000 and
250,000  shares  annually each, copies of which are to be attached as Exhibits A
and  B hereto and which shall be approved and signed by all parties prior to the
closing

12.     Legal  Advisors.  The  law  firm  of  Epstein,  Becker  and Green may be
        ---------------
considered  to  serve  as  legal  advisor  to  Histostem  and  the new entity as
necessary.

                                       12
<PAGE>
13.Notices.
   -------

     Any  notice which any of the parties hereto may desire to serve upon any of
the other parties hereto shall be in writing and shall be conclusively deemed to
have  been  received  by  the  party at its address, if mailed, postage prepaid,
United  States  mail,  registered,  return  receipt  requested, to the following
addresses:

     If  to  Histostem:  Histostem,  Ltd.
                         518-4
                         placeCitySeoul  Life  Foundation  Bldg.
                         Dunchon-dong,  Kangdong-gu,
                         placeCitySeoul  134-060,
                         placecountry-regionSouth  Korea
                         Attn:  Dr.  Hoon  Han,  Chief  Executive  Officer

     If  to  SCII:       Stem  Cell  Therapy  International,  Inc.
                         2203  N.  Lois  Avenue,  9th  Floor
                         Tampa, FL  33607
                         Facsimile  No.:  (813)  830-6112
                         Attn:  Calvin  Cao,  President

                         Copy  to:

                         Cutler  Law  Group
                         addressStreet3206  West  Wimbledon  Drive
                         placeCityAugusta,  StateGA  PostalCode30909
                         Facsimile  No.:  (706)  243-4206
                         Attention:  M.  Richard  Cutler

14.     Successors.
        ----------

     This Agreement shall be binding upon and inure to the benefit of the heirs,
personal  representatives  and  successors  and  assigns  of  the  parties.

15.     Choice  of  Law.
        ---------------

     This  Agreement shall be construed and enforced in accordance with the laws
of  the  State  of  placeStateNevada,  and  the  parties submit to the exclusive
jurisdiction  of  the  courts  of  placeStateNevada  in  respect of all disputes
arising  hereunder.

16.     Counterparts.
        ------------

     This  Agreement  may  be  signed  in one or more counterparts, all of which
taken  together  shall  constitute  an  entire  agreement.

17.     Confidential  Information.
        -------------------------

     Each  of  Histostem  and  SCII  hereby  acknowledges  and  agrees  that all
information  disclosed  to  each  other whether written or oral, relating to the
other's business activities, its customer names, addresses, all operating plans,
information  relating  to  its  existing services, new or envisioned products or
services  and  the  development  thereof,  scientific, engineering, or technical
information  relating  to  the others business, marketing or product promotional
material,  including brochures, product literature, plan sheets, and any and all
reports  generated  to  customers, with regard to customers, unpublished list of
names,  and

                                       13
<PAGE>
all  information relating to order processing, pricing, cost and quotations, and
any  and all information relating to relationships with customers, is considered
confidential  information,  and  is  proprietary  to,  and  is  considered  the
invaluable trade secret of such party (collectively "Confidential Information").
Any  disclosure  of  any  Confidential  Information  by  any  party  hereto, its
employees,  or  representatives  shall  cause  immediate,  substantial,  and
irreparable  harm  and loss to the other.  Each party understands that the other
desires  to  keep such Confidential Information in the strictest confidence, and
that  such  party's  agreement to do so is a continuing condition of the receipt
and  possession  of  Confidential  Information, and a material provision of this
agreement, and a condition that shall survive the termination of this Agreement.
Consequently, each party shall use Confidential Information for the sole purpose
of  performing  its  obligations  as  provided  herein.

18.     Public  Announcement.
        --------------------

     The  parties  shall  make no public announcement concerning this agreement,
their  discussions or any other letters, memos or agreements between the parties
relating  to  this  agreement until such time as they agree to the contents of a
mutually  satisfactory press release which they intend to release on the date of
execution  of  this Agreement.  Either of the parties, but only after reasonable
consultation  with  the  other, may make disclosure if required under applicable
law.  For  the  protection  of the Company and its shareholders, for a period of
twelve-months  following  the  Closing  no press releases shall be issued by the
Company  until  such  time  as  the  proposed press release has been approved in
writing  by  legal  counsel to the Company and by the U.S. operations management
team.

19.     Entire  Agreement.
        -----------------

     This  Agreement  sets  forth  the entire agreement and understanding of the
Parties  hereto  with  respect  to  the  transactions  contemplated  hereby, and
supersedes  all prior agreements, arrangements and understandings related to the
subject  matter  hereof.  No  understanding,  promise,  inducement, statement of
intention,  representation,  warranty,  covenant  or condition, written or oral,
express  or implied, whether by statute or otherwise, has been made by any Party
hereto  which  is  not  embodied  in  this  Agreement or the written statements,
certificates, or other documents delivered pursuant hereto or in connection with
the  transactions  contemplated hereby, and no party hereto shall be bound by or
liable  for  any  alleged  understanding,  promise,  inducement,  statement,
representation,  warranty,  covenant  or  condition  not  so  set  forth.

20.     Costs  and  Expenses.
        --------------------

     Except as otherwise specifically set forth herein, each party will bear its
own  attorneys,  brokers,  investment  bankers, agents, and finders employed by,
such  party.  The  parties  will indemnify each other against any claims, costs,
losses, expenses or liabilities arising from any claim for commissions, finder's
fees  or  other  compensation  in  connection with the transactions contemplated
herein which may be asserted by any person based on any agreement or arrangement
for  payment  by  the  other  party.

21.     Attorney's  Fees.
        -----------------

     Should  any  action  be  commenced  between  the  parties to this Agreement
concerning  the  matters  set forth in this Agreement or the right and duties of
either  in  relation  thereto,  the  prevailing  party  in  such Action shall be
entitled,  in  addition  to such other relief as may be granted, to a reasonable
sum  as  and  for  its  Attorney's  Fees  and  Costs.

                                       14
<PAGE>
22.     Finders.
        --------

     Histostem  represents  and  warrants  that  there  are  no finders or other
parties  which  have  represented  Histostem in connection with this transaction
which have not received appropriate compensation.  In the event any such finders
make  a  claim  for  any fee, share issuance of other compensation in connection
with the transactions contemplated hereby, they shall be the sole responsibility
of  Histostem.  SCII  represents and warrants that there are no finders or other
parties which have represented SCII in connection with this transaction.  In the
event  any  such  finders  make  a  claim  for  any fee, share issuance of other
compensation in connection with the transactions contemplated hereby, they shall
be  the  sole  responsibility  of  SCII.

[remainder  of  this  page  intentionally  left  blank]

                                       15
<PAGE>
IN  WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of the
date  first  above  written.

For  and  on  behalf  of:     Histostem  Ltd
                              a  Korean  corporation

                              By: \s\ Dr. Hoon Han
                                  -------------------------
                              Dr.  Hoon  Han
                              Chief  Executive  Officer

For  and  on  behalf  of:     Stem  Cell  Therapy  International,  Inc.
                              a  placeStateNevada  corporation

                              By: \s\ Calvin Cao
                                  -------------------------
                              Calvin  Cao
                              President

                                       16
<PAGE>Filed by Bowne Pure Compliance

 

Exhibit 10.12

LEASE

by and between

BMR-LANDMARK AT EASTVIEW LLC,

a Delaware limited liability company

and

EPICEPT CORPORATION,

a Delaware corporation

 

 

 

LEASE

THIS LEASE (this “Lease”) is entered into as of August 28, 2006 (the “Effective
Date”), by and between BMR-LANDMARK AT EASTVIEW LLC, a Delaware limited liability company
(“Landlord”), and EPICEPT CORPORATION, a Delaware corporation (“Tenant”).

RECITALS

A. Landlord owns certain real property (the “Property”) and the building improvements
thereon located at 777 Old Saw Mill River Road in Tarrytown, New York, including the building
located thereon (the “Building”) in which the Premises (as defined below) are located; and

B. Landlord wishes to lease to Tenant, and Tenant desires to lease from Landlord, certain
premises (the “Premises”) located in the Building, pursuant to the terms and conditions of
this Lease, as detailed below.

AGREEMENT

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

1. Lease of Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the Premises, on the 02 Floor of the Building, as shown on Exhibit A attached
hereto. The Property and all landscaping, parking facilities and other improvements and
appurtenances related thereto, including, without limitation, the Building, are hereinafter
collectively referred to as the “Project.” All portions of the Project that are for the
non-exclusive use of tenants of the Building, including, without limitation, driveways, sidewalks,
parking areas, landscaped areas, service corridors, stairways, elevators, public restrooms and
public lobbies, are hereinafter referred to as “Common Area.”

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

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

2.2 In the definitions below, each Rentable Area is expressed in rentable square footage.
Rentable Area and Tenant’s Pro Rata Shares are all subject to adjustment under this Lease,
including under Section 9.2.

	 	 	 
	Definition or Provision	 	Means the Following (As of the Term Commencement Date)
	Rentable Area of Premises

	 	9,805
	Tenant’s Pro Rata Share of Project (Premises)

	 	1.3%

2.3 Initial Annual (and Monthly Rental Installments) of Basic Annual Rent for the Premises
(“Basic Annual Rent”) (starting as of the Rent Commencement Date, subject to adjustment
under this Lease):

	 	 	 	 	 	 	 
	Rentable s.f.	 	Per Rentable s.f.	 	Total Annual	 	Total Monthly
	9,805

	 	$28.65 annually
	 	$280,913.25
	 	$23,409.44

2.4 Electric Payment Amount: $2.50 per rsf annually, subject to increase as detailed below

2.5 Base Year: 2006.

 

 

 

2.6 The Term Commencement Date shall be the date that is the later of (a) August 30, 2006, and
(b) the date that the Tenant Improvements (as defined below) are Substantially Complete (as defined
below), but in no event later than September 29, 2006. The actual Term Commencement Date shall be
determined pursuant to Section 4.2. The “Estimated Term Commencement Date” is
September 29, 2006.

2.7 Rent Commencement Date: December 1, 2006.

2.8 Term Expiration Date: Five (5) years from the Rent Commencement Date.

2.9 Security Deposit: An amount equal to three (3) months of Basic Annual Rent, subject to
adjustment under the previous sentence and the terms of this Lease.

2.10 Permitted Use: General office use in conformity with Applicable Laws (as defined below)

	 	 	 	 	 
	 

	 	2.11 Address for Rent Payment:
	 	BMR-Landmark at Eastview LLC

Unit A

P.O. Box 51918

Los Angeles, CA 90051-6218
	 
	 	 	 	 
	 

	 	2.12 Address for Notices to Landlord:
	 	BMR-Landmark at Eastview LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Facsimile: (858) 485-9843

Attention: General Counsel/Real Estate
	 
	 	 	 	 
	 

	 	2.13 Address for Notices to Tenant:	 	 

	 	(a)	 	Prior to the Term Commencement Date:

Jack Talley, Chief Executive Officer

270 Sylvan Avenue

Englewood Cliffs, New Jersey

	 	(b)	 	After to the Term Commencement Date:

Jack Talley, Chief Executive Officer

At the premises

2.14 The following Rider and Exhibits are attached hereto and incorporated herein by
reference:

	 	 	 
	Rider	 	Landmark Rider
	Exhibit A

	 	Premises
	Exhibit B

	 	Acknowledgement of Term Commencement Date and Term Expiration Date
	Exhibit C

	 	Tenant’s Personal Property
	Exhibit D

	 	Rules and Regulations
	Exhibit E

	 	Form of Estoppel Certificate
	Exhibit F

	 	Option Premises
	Exhibit G

	 	Work Letter
	Exhibit H

	 	HVAC Calculation Model
	Exhibit I

	 	Letter of Credit

3. Term.

3.1 This Lease shall take effect upon the Effective Date and, except as specifically otherwise
provided within this Lease, each of the provisions hereof shall be binding upon and inure to the
benefit of Landlord and Tenant from the date of execution and delivery hereof by all parties
hereto.

 

2

 

3.2 The actual term of this Lease (the “Term”) shall commence on the Term Commencement
Date (as defined in Section 4.2 below) and continue through the Term Expiration Date,
subject to earlier termination of this Lease as provided herein.

4. Possession and Term Commencement Date.

4.1 Landlord shall tender possession of the Premises to Tenant on the Term Commencement Date,
with the work required of Landlord described in the Work Letter attached hereto as Exhibit
G (the “Work Letter”) Substantially Complete (as defined below). Tenant agrees that in
the event such work is not Substantially Complete on or before the Estimated Term Commencement Date
for any reason, then (a) this Lease shall not be void or voidable, (b) Landlord shall not be liable
to Tenant for any loss or damage resulting therefrom, (c) the Term Expiration Date shall be
extended accordingly and (d) Tenant shall not be responsible for the payment of any Rent (as
defined below) until the Rent Commencement Date. The work required of Landlord described in the
Work Letter shall be deemed Substantially Complete, as that term is used in this Section 4
and elsewhere in this Lease, if Landlord has (y) completed all of Landlord’s work identified on
Tenant’s plans and specifications (subject only to a punch list of items that do not materially and
substantially interfere with Tenant’s use of the Premises) and (z) received a temporary certificate
of occupancy from the applicable municipal authority(ies) or a certificate of substantial
completion from the architect, or would have received either such certificate but for delays or
failure of Tenant or Tenant’s architect to deliver items in accordance with the Work Letter. The
term “Substantially Complete” or “Substantial Completion” means that the Tenants
Improvements are substantially complete in accordance with the Approved Plans (as defined in the
Work Letter), except for minor punch list items. Landlord shall notify Tenant of the anticipated
Substantial Completion date at least ten (10) days prior thereto: provided, however, that
Tenant’s sole remedy for Landlord’s failure to provide such notification shall be a day-for-day
extension of the Substantial Completion date for each day less than the stated ten (10) days that
Landlord’s notification is received by Tenant prior to the aniticipated Substantial Completion
date. IN the event the Substantial Completion does not occur by September 30, 2006, then, for each
day after September 30, 2006, that Substantial Completion does not occur, (a) the Rent Commencement
Date shall be extended by one (1) day and (b) Landlord shall pay to Tenant, within thirty (30) days
after Landlord’s receipt of evidence reasonably satisfactory to Landlord of Tenant’s payment of
such amount to its current landlord, up to Ten Thousand Four Hundred Seventy-Eight and 11/100
Dollars ($10,478.11) to reimburse Tenant for any base rent holdover penalty actually paid by Tenant
to its current landlord: provided, however, that this sentence shall not apply with regard
to any delay caused by any act or omission or Tenant or its agent, employees, contractors, or
invitees: and provided that Tenant shall use commercially reasonable efforts to cause their
current landlord to waive its right to collect any such base rent holdover penalty.

4.2 The “Term Commencement Date” shall be the day Landlord tenders possession of the
Premises to Tenant with all work required of Landlord pursuant to the Work Letter, if any,
Substantially Complete. If possession is delayed by any act or omission of Tenant or its agents,
employees, contractors or invitees, then the Term Commencement Date shall be the date of
substantial completion of Landlord’s work. Landlord shall promptly notify Tenant of any such
Tenant-caused delay; provided that Landlord’s failure to timely notify Tenant shall not
extend the Term Commencement Date. Tenant shall execute and deliver to Landlord written
acknowledgment of the actual Term Commencement Date and the Term Expiration Date when such is
established, and shall attach it to this Lease as Exhibit B. Failure to execute and
deliver such acknowledgment, however, shall not affect the Term Commencement Date or Landlord’s or
Tenant’s liability hereunder.

4.3 In the event that Landlord permits (in Landlord’s sole and absolute discretion) Tenant to
enter upon the Premises prior to the Term Commencement Date for the purpose of installing
improvements or the placement of personal property, Tenant shall furnish to Landlord evidence
satisfactory to Landlord that insurance coverages required of Tenant under the provisions of
Article 24 are in effect, and such entry shall be subject to all the terms and conditions
of this Lease other than the payment of Basic Annual Rent or Additional Rent (as defined below).

 

3

 

4.4 Landlord shall cause to be constructed the tenant improvements in the Premises (the
“Tenant Improvements”) pursuant to the Work Letter at a cost to Landlord (the “Tenant
Improvement Allowance”) not to exceed Five Hundred Nineteen Thousand Six Hundred Sixty-
Five Dollars ($519,665) (based upon Fifty-Three Dollars ($53) per rentable square foot), which
amount shall include the costs of (a) construction, (b) project management by Landlord (which fee
shall not exceed four percent (4%) of the Tenant Improvement Allowance), (c) space planning,
architect, engineering and other related services and (d) building permits and other planning and
inspection fees. If the total cost of the Tenant Improvements exceeds the Tenant Improvement
Allowance, then the overage shall be paid by Landlord, except for any amounts resulting from the
acts or omissions of Tenant or its agents, employees, contractors or invitees or as otherwise
provided in the Work Letter attached hereto (“Tenant’s Portion”). In the event that any portion of
the Tenant Improvement Allowance is not used for the Tenant Improvements, the initial Basic Annual
Rent shall be reduced on a square footage basis to reflect such unused amount; provided, however,
that in no event shall the initial Basic Annual Rent be less than Twenty-Five Dollars ($25) per
rentable square foot.

5. General Provisions on Tenant Improvements.

5.1 Landlord and Tenant shall mutually agree upon the selection of the architect, engineer,
general contractor and major subcontractors for Tenant Improvements. Landlord and Tenant shall
each participate in the review of the competitive bid process.

5.2 Possession of areas of the Premises necessary for utilities, services, safety and
operation of the Building is reserved to Landlord.

6. [Intentionally omitted]

7. Rent for the Premises.

7.1 Starting on the Rent Commencement Date for the Premises, Tenant shall pay to Landlord the
Basic Annual Rent during the Term. Basic Annual Rent is subject to annual adjustment as provided
in Article 8.

7.2 Basic Annual Rent shall be paid in equal monthly installments as set forth in Section
2.3, subject to the rental adjustments provided in Article 8 hereof, each in advance on
the first day of each and every calendar month during the Term.

7.3 In addition to Basic Annual Rent, Tenant shall pay to Landlord as additional rent
(“Additional Rent”) at times hereinafter specified in this Lease: (a) Tenant’s pro rata
share, as set forth in Section 2.2 (“Tenant’s Pro Rata Share”), of Operating
Expenses as provided in Article 9 that exceed the Operating Expenses during the Base Year
(Tenant’s Pro Rata Share of such excess, “Tenant’s Operating Expense Obligation”), and (b)
any other amounts that Tenant assumes or agrees to pay under the provisions of this Lease that are
owed to Landlord, including, without limitation, any and all other sums that may become due by
reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms,
covenants and conditions of this Lease to be performed by Tenant, after notice and the lapse of any
applicable cure periods.

7.4 Basic Annual Rent and Additional Rent shall together be denominated “Rent.” Rent
shall be paid to Landlord, without abatement, deduction or offset, in lawful money of the United
States of America at the office of Landlord as set forth in Section 2.11 or to such other
person or at such other place as Landlord may from time designate in writing. In the event the
Term commences or ends on a day other than the first day of a calendar month, then the Rent for
such fraction of a month shall be prorated for such period on the basis of a thirty (30) day month
and shall be paid at the then-current rate for such fractional month.

8. Rent Adjustments. The Basic Annual Rent shall be subject to an annual upward
adjustment of two percent (2%) of the then-current Basic Annual Rent (as previously adjusted under
this Article 8). The first such adjustment shall become effective commencing with that
monthly rental installment that is due on or after the first (1st) annual anniversary of
the Rent Commencement Date. Subsequent adjustments shall become effective, for all Basic Annual
Rent under the Lease, on every successive annual anniversary of the Rent Commencement Date for so
long as this Lease continues in effect.

 

4

 

9. Operating Expenses.

9.1 As used herein, the term “Operating Expenses” shall include the following:

(a) Government impositions (collectively, “Real Estate Taxes”) including, without
limitation, property tax costs consisting of real property taxes and assessments and taxes and
assessments on Landlord’s personal property and improvements located on the Property, including
amounts due under any improvement bond upon the Building or the Project, including the parcel or
parcels of real property upon which the Building and areas serving such Building are located or
assessments in lieu thereof imposed by any federal, state, regional, local or municipal
governmental authority, agency or subdivision(each, a “Governmental Authority”) are levied;
taxes on or measured by gross rentals received from the rental of space in the Building; taxes
based on the square footage of the Premises, the Building or the Project, as well as any parking
charges, utilities surcharges or any other costs levied, assessed or imposed by, or at the
direction of, or resulting from Applicable Laws (as defined below) or interpretations thereof,
promulgated by any Governmental Authority in connection with the use or occupancy of the Building
or the parking facilities serving the Building; taxes on this transaction or any document to which
Tenant is a party creating or transferring an interest in the Premises; any fee for a business
license to operate an office building; and any expenses, including the reasonable cost of attorneys
or experts, reasonably incurred by Landlord in seeking reduction by the taxing authority of the
applicable taxes, less tax refunds obtained as a result of an application for review thereof.
Operating Expenses shall not include any net income, franchise, capital stock, estate, transfer or
inheritance taxes, or taxes that are the personal obligation of Tenant or of another tenant of the
Project; and

(b) All other costs of any kind paid or incurred by Landlord in connection with the operation
or maintenance of the Building and the Project including, by way of example and not of limitation,
costs of repairs and replacements to improvements within the Project as appropriate to maintain the
Project as required hereunder, including costs of funding such reasonable reserves as Landlord,
consistent with good business practice, may establish to provide for future repairs and
replacements; costs of utilities furnished to the Common Areas; sewer fees; trash collection;
cleaning, including windows; a management fee equal to four percent (4%) of the aggregate rents,
additional rents and other charges payable to Landlord by tenants at the Property; heating;
ventilation; air-conditioning; maintenance of landscaping and grounds; maintenance of drives and
parking areas; maintenance of the roof; security services and devices; building supplies;
maintenance or replacement of equipment utilized for operation and maintenance of the Project;
license, permit and inspection fees; sales, use and excise taxes on goods and services purchased
by Landlord in connection with the operation, maintenance or repair of the Project or Building
systems and equipment; telephone, postage, stationery supplies and other expenses incurred in
connection with the operation, maintenance or repair of the Project; accounting, legal and other
professional fees and expenses incurred in connection with the Project; costs of furniture,
draperies, carpeting, landscaping and other customary and ordinary items of personal property
provided by Landlord for use in Common Areas or in the Project office; office rent or rental value
for not more than a commercially reasonable amount of space, to the extent an office used for
Project operations is maintained at the Project; capital expenditures (provided that the cost of
any such capital expenditure shall be amortized over its useful life in accordance with GAAP);
costs of complying with any federal, state, municipal or local laws and regulations, including both
statutory and common law and hazard waste rules and regulations (“Applicable Laws”);
insurance premiums, including premiums for public liability, property casualty, earthquake,
terrorism and environmental coverages; portions of insured losses paid by Landlord as part of the
deductible portion of a loss pursuant to the terms of insurance policies; service contracts; costs
of services of independent contractors retained to do work of a nature referenced above; and costs
of compensation (including employment taxes and fringe benefits) of all persons who perform regular
and recurring duties connected with the day-to-day operation and maintenance of the Project, its
equipment, the adjacent walks, landscaped areas, drives and parking areas, including, without
limitation, janitors, floor waxers, window washers, watchmen, gardeners, sweepers and handymen.

Notwithstanding the foregoing, Operating Expenses shall not include: any leasing commissions;
expenses that relate to preparation of rental space for a tenant; expenses of “ground-up”
development and construction, including, but not limited to, grading, paving, landscaping and
decorating (as distinguished from maintenance, repair and replacement of the foregoing), for new
buildings to be occupied by tenants; legal expenses relating to other tenants;
costs of repairs to the extent reimbursed by payment of insurance proceeds received by
Landlord; interest upon loans to Landlord or secured by a mortgage or deed of trust covering the
Project or a portion thereof (provided that interest upon a government assessment or
improvement bond payable in installments shall constitute an Operating Expense under Subsection
9.1(a)); salaries of executive officers of Landlord; depreciation claimed by Landlord for tax
purposes (provided that this exclusion of depreciation is not intended to delete from
Operating Expenses actual costs of repairs and replacements and reasonable reserves in regard
thereto that are provided for in Subsection 9.1(a)); and taxes of the types set forth in
Subsection 9.1(a).

 

5

 

“Applicable Laws” means all laws, codes, ordinances, rules and regulations of
governmental authorities, committees, associations, or other regulatory committees, agencies or
governing bodies having jurisdiction over the Property, the Building, the Premises, Landlord or
Tenant.

9.2 Tenant shall pay to Landlord on the first day of each calendar month of the Term, as
Additional Rent, Landlord’s estimate of Tenant’s Operating Expense Obligation with respect to the
Building and the Project, as applicable, for such month.

(y) Within ninety (90) days after the conclusion of each calendar year (or such longer period
as may be reasonably required by Landlord), Landlord shall furnish to Tenant a statement showing in
reasonable detail the actual Operating Expenses and Tenant’s Operating Expense Obligation for the
previous calendar year. Any additional sum due from Tenant to Landlord shall be immediately due
and payable. If the amounts paid by Tenant pursuant to this Section 9.2 exceed Tenant’s
Operating Expense Obligation for the previous calendar year, then Landlord shall credit the
difference against the Rent next due and owing from Tenant; provided that, if the Lease
term has expired, Landlord shall accompany said statement with payment for the amount of such
difference.

(z) Any amount due under this Section 9.2 for any period that is less than a full
month shall be prorated (based on a thirty (30)-day month) for such fractional month.

9.3 Landlord’s annual operating statement shall be prepared in accordance with generally
accepted accounting principles and shall be final and binding upon Tenant unless Tenant, within one
hundred twenty (120) days after Tenant’s receipt thereof, shall contest any item therein by giving
written notice to Landlord, specifying each item contested and the reasons therefor. If, during
such one hundred twenty (120)-day period, Tenant reasonably and in good faith questions or contests
the correctness of Landlord’s statement of Tenant’s Operating Expense Obligation, Landlord shall
provide Tenant with reasonable access to Landlord’s books and records to the extent relevant to
determination of Operating Expenses, and such information as Landlord reasonably determines to be
responsive to Tenant’s written inquiries. In the event that, after Tenant’s review of such
information, Landlord and Tenant cannot agree upon the amount of Tenant’s Operating Expense
Obligation, then Tenant shall have the right to have an independent public accounting firm hired by
Tenant on an hourly basis and not on a contingent-fee basis (at Tenant’s sole cost and expense) and
approved by Landlord (which approval Landlord shall not unreasonably withhold or delay) audit and
review such of Landlord’s books and records for the year in question as directly relate to the
determination of Operating Expenses for such year (the “Independent Review”). Landlord
shall make such books and records available at the location where Landlord maintains them in the
ordinary course of its business, provided that such location is within the continental United
States. Landlord need not provide copies of any books or records. Tenant shall commence the
Independent Review within fifteen (15) days after the date Landlord has given Tenant access to
Landlord’s books and records for the Independent Review. Tenant shall complete the Independent
Review and notify Landlord in writing of Tenant’s specific objections to Landlord’s calculation of
Operating Expenses (including Tenant’s accounting firm’s written statement of the basis, nature and
amount of each proposed adjustment) no later than six (6) months after Landlord has first given
Tenant access to Landlord’s books and records for the Independent Review. Landlord shall review
the results of any such Independent Review. The parties shall endeavor to agree promptly and
reasonably upon Operating Expenses taking into account the results of such Independent Review. If,
as of ninety (90) days after Tenant has submitted the Independent Review to Landlord, the parties
have not agreed on the appropriate adjustments to Operating Expenses, then the parties shall engage
a mutually agreeable independent third party accountant with at least ten (10) years’ experience in
commercial real estate accounting in the New York metropolitan area (the “Accountant”). If
the parties cannot agree on the Accountant, each shall within ten (10) days
after such impasse appoint an Accountant (different from the accountant and accounting firm
that conducted the Independent Review) and, within ten (10) days after the appointment of both such
Accountants, those two Accountants shall select a third (which cannot be the accountant and
accounting firm that conducted the Independent Review). If either party fails to timely appoint an
Accountant, then the Accountant the other party appoints shall be the sole Accountant. Within ten
(10) days after appointment of the Accountant(s), Landlord and Tenant shall each simultaneously
give the Accountants (with a copy to the other party) its determination of Operating Expenses, with
such supporting data or information as each submitting party determines appropriate. Within ten
(10) days after such submissions, the Accountants shall by majority vote select either Landlord’s
or Tenant’s determination of Operating Expenses. The Accountants may not select or designate any
other determination of Operating Expenses. The determination of the Accountant(s) shall bind the
parties. If the parties agree or the Accountant(s) determine that Tenant’s Operating Expense
Obligation actually paid for the calendar year in question exceeded Tenant’s obligations for such
calendar year, then Landlord shall, at Tenant’s option, either (a) credit the excess to the next
succeeding installments of estimated Additional Rent or (b) pay the excess to Tenant within thirty
(30) days after delivery of such results and if Tenant’s Operating Expense Obligation actually paid
for the calendar year in question exceeded Tenant’s Obligation for such calendar year by greater
than twenty percent (20%), then Landlord shall reimburse Tenant for Tenant’s reasonable third party
costs for conducting the audit. If the parties agree or the Accountant(s) determine that Tenant’s
payments of Tenant’s Operating Expense Obligation for such calendar year were less than Tenant’s
obligation for the calendar year, then Tenant shall pay the deficiency to the Landlord within
thirty (30) days after delivery of such results.

 

6

 

9.4 Tenant shall not be responsible for Operating Expenses attributable to the time period
prior to the Term Commencement Date; provided, however, that if Landlord shall
permit Tenant possession of the Premises prior to the Term Commencement Date, Tenant shall be
responsible for Operating Expenses from such earlier date of possession. Tenant’s responsibility
for Tenant’s Operating Expense Obligation shall continue to the latest of (a) the date of
termination of the Lease, (b) the date Tenant has fully vacated the Premises or (c) if termination
of the Lease is due to a default by Tenant, the date of rental commencement of a replacement
tenant.

9.5 Operating Expenses for the calendar year in which Tenant’s obligation to share therein
commences and for the calendar year in which such obligation ceases shall be prorated on a basis
reasonably determined by Landlord. Expenses such as taxes, assessments and insurance premiums that
are incurred for an extended time period shall be prorated based upon the time periods to which
they apply so that the amounts attributed to the Premises are based on the time period wherein
Tenant has an obligation to share in Operating Expenses.

10. Rentable Area.

10.1 The term “Rentable Area” as set forth in Section 2 and as referenced
within the Work Letter, and as may otherwise be referenced within this Lease, shall reflect such
area as reasonably calculated by Landlord’s architect.

10.2 The “Rentable Area” of the Building is generally determined by making separate
calculations of Rentable Area applicable to each floor within the Building and totaling the
Rentable Area of all floors within the Building. The Rentable Area of a floor is computed by
measuring to the outside finished surface of the permanent outer Building walls. The full area
calculated as previously set forth is included as Rentable Area, without deduction for columns and
projections or vertical penetrations, including stairs, elevator shafts, flues, pipe shafts,
vertical ducts and the like, as well as such items’ enclosing walls.

10.3 The Rentable Area of the Project is the total Rentable Area of all buildings within the
Project.

10.4 The term “Rentable Area,” when applied to the Premises, is that area equal to the
usable area of the Premises, plus an equitable allocation of Rentable Area within the Building that
is not then utilized or expected to be utilized as usable area, including, but not limited to, that
portion of the Building devoted to corridors, equipment rooms, restrooms, elevator lobby, atrium
and mailroom. In making such allocations, consideration shall be given to tenants benefited by
space allocated such that the area that primarily serves tenants of only one floor,
such as corridors and restrooms upon such floor, shall be allocated to usable area of the
Building as a whole.

10.5 Review of allocations of Rentable Areas as between tenants of the Building and the
Project shall be made as frequently as Landlord deems appropriate in order to facilitate an
equitable apportionment of Operating Expenses. If such review is by a licensed architect and
allocations are certified by such licensed architect as being correct, then the Tenant shall be
bound by such certifications.

 

7

 

11. [Intentionally omitted]

12. Security Deposit.

12.1 Tenant has deposited with Landlord the sum set forth in Section 2.9 (the
“Security Deposit”), which sum shall be held by Landlord as security for the faithful
performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and
performed by Tenant through the Term Expiration Date. If Tenant defaults with respect to any
provision of this Lease, including, but not limited to, any provision relating to the payment of
Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the
Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord
for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any
portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days
following demand therefor, deposit cash with Landlord in an amount sufficient to restore the
Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach
of this Lease. Nothing in this paragraph limits Tenant’s rights to deliver L/C Security in
compliance with Section 12.7.

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

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

12.4 If Tenant shall fully and faithfully perform every provision of this Lease to be
performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant
(or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30)
days after the expiration or earlier termination of this Lease.

12.5 If the Security Deposit shall by in cash, Landlord shall deposit the Security Deposit
into an interest-bearing account at a banking organization selected by Landlord. All interest
and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum
charge to the Security Deposit for administrative expenses, shall be added to, held and included
within the term Security Deposit and, provided that no Default shall have occurred and be
continuing, shall accrue to the account of Tenant. In the event that the Security Deposit accrues
less than one (1%) interest during any year (before taking into account Landlord’s administrative
fee), Landlord’s administrative fee under this paragraph for such year shall be equal to the amount
of such interest. Landlord shall not be required to credit Tenant with any interest for any period
during which Landlord does not receive interest on the Security Deposit in excess of the
administrative fee.

12.6 [Intentionally omitted]

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

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

 

8

 

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

(c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same
manner and for the same purposes as the Security Deposit, if: (a) an uncured Default exists; (b)
as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after
the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such
L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (i)
three (3) months after the then-current Term Expiration Date or (ii) the date one year after the
then-current expiry date of the L/C Security; (c) the L/C Security provides for automatic renewals,
Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to
do so within ten (10) business days; (d) Tenant fails to pay (when and as Landlord reasonably
requires) any bank charges for Landlord’s transfer of the L/C Security; or (e) the issuer of the
L/C Security ceases, or announces that it will cease, to maintain an office in the city where
Landlord may present drafts under the L/C Security. This paragraph does not limit any other
provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances.

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

(e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense,
within five Business Days after receiving a request from Landlord, deliver (and, if the issuer
requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as
substitute beneficiary. If the required Security changes while L/C Security is in force, then
Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding
amendment to the L/C Security.

13. Use and Access.

13.1 Tenant shall use the Premises for the purpose set forth in Section 2.10, and
shall not use the Premises, or permit or suffer the Premises to be used, for any other purpose
without Landlord’s prior written consent, which consent Landlord may withhold in its sole and
absolute discretion.

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

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

 

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

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

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

13.7 No sign, advertisement or notice (“Signage”) shall be exhibited, painted or
affixed by Tenant on any part of the Premises or the Building without Landlord’s prior written
consent. Interior signs on doors and the directory tablet shall be inscribed, painted or affixed
for Tenant by Landlord (at Tenant’s sole cost and expense, in the case of signs and doors, and at
no cost to Tenant, in the case of the directory tablet), and shall be of a size, color and type and
be located in a place acceptable to Landlord. The directory tablet shall be provided exclusively
for the display of the name and location of tenants only, and Tenant shall not place anything on
the exterior of the corridor walls or corridor doors other than Landlord’s standard lettering.
Tenant shall have Signage rights for the Premises substantially consistent with the Signage
permitted for other comparable Tenants in the Project, as Landlord reasonably determines. Upon
Tenant’s request and at Landlord’s option, Landlord may install any such Signage for Tenant, and
Tenant shall pay all costs associated with such installation within five (5) days after demand
therefor.

13.8 Tenant shall cause any office equipment or machinery to be installed in the Premises so
as to reasonably prevent sounds or vibrations therefrom from extending into the Common Areas or
other offices in the Building. Further, Tenant shall only place equipment within the Premises with
floor loading consistent with the structural design of the Building without Landlord’s prior
written approval, and such equipment shall be placed in a location designed to carry the weight of
such equipment.

13.9 Tenant shall not: (a) do or permit anything to be done in or about the Premises that
shall in any way obstruct or interfere with the rights of other tenants or occupants of the
Building or the Project, or injure or annoy them; (b) use or allow the Premises to be used for
immoral, unlawful or objectionable purposes; (c) cause, maintain or permit any nuisance or waste
in, on or about the Premises, the Building or the Project; or (d) take any other action that would
in Landlord’s reasonable determination in any manner adversely affect other tenants’ quiet use and
enjoyment of their space or adversely impact their ability to conduct business in a professional
and suitable work environment.

13.10 Notwithstanding any other provision herein to the contrary, Tenant shall be responsible
for all liabilities, costs and expenses arising out of or in connection with the compliance of the
Premises with the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq. (together with
regulations promulgated pursuant thereto, the “ADA”), and Tenant shall indemnify, defend
and hold harmless Landlord from and against any loss, cost, liability or expense (including
reasonable attorneys’ fees and disbursements) arising out of any failure of the Premises to comply
with the ADA; provided that Landlord shall be responsible for compliance of the initial
Tenant Improvements, the Building (other than the Premises) and the Project (other than the
Premises) with the ADA; provided, further, that Landlord’s costs of such compliance shall
be paid out of the Tenant Improvement Allowance, in the case of the initial Tenant
Improvements, and shall be included as Operating Expenses in all other cases. The provisions
of this Section 13.10 shall survive the expiration or earlier termination of this Lease.

 

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13.11 Tenant shall have the right to continuous access to the Premises twenty-four (24) hours
per day, seven (7) days per week, 365/366 days per year, except during reasonable closures for
repairs or maintenance, or as the result of casualty or other circumstances beyond Landlord’s
reasonable control.

13.12 Tenant shall have the nonexclusive right to use Building passenger elevator(s), if any,
for access to the Premises, except during reasonable closures for breakdowns, repairs or
maintenance. Landlord shall have no liability for any of the aforementioned closures. When the
elevator is closed or broken, Tenant may use the stairways Landlord designates. If the Building
has a freight elevator, then Tenant may use it only in compliance with the Building rules and upon
paying Landlord’s freight elevator charges as set from time to time. Notwithstanding the
foregoing, Tenant shall not incur any such charges during Tenant’s initial move-in or during its
vacating of the Premises, provided Tenant is conducting such move-in and vacating with reasonable
diligence. Tenant shall schedule deliveries of building materials and freight only outside
Business Hours or as Landlord may otherwise permit. “Business Hours” means Monday through
Friday, 8:00 a.m. to 6:00 p.m.

14. Brokers.

14.1 Tenant represents and warrants that it has had no dealings with any real estate broker or
agent in connection with the negotiation of this Lease other than Studley Inc. (“Broker”),
and that it knows of no other real estate broker or agent that is or might be entitled to a
commission in connection with this Lease. Landlord shall compensate Broker in relation to this
Lease pursuant to a separate agreement between Landlord and Broker.

14.2 Tenant represents and warrants that no broker or agent has made any representation or
warranty relied upon by Tenant in Tenant’s decision to enter into this Lease, other than as
contained in this Lease.

14.3 Tenant acknowledges and agrees that the employment of brokers by Landlord is for the
purpose of solicitation of offers of leases from prospective tenants and that no authority is
granted to any broker to furnish any representation (written or oral) or warranty from Landlord
unless expressly contained within this Lease. Landlord is executing this Lease in reliance upon
Tenant’s representations, warranties and agreements contained within Sections 14.1,
14.2 and 14.4.

14.4 Landlord and Tenant agree to indemnify, defend and hold the other harmless from any and
all cost or liability for compensation claimed by any other broker or agent, other than Broker in
the case of Tenant, employed or engaged by such party or claiming to have been employed or engaged
by such party.

15. Holding Over.

15.1 If, with Landlord’s prior written consent, Tenant holds possession of all or any part of
the Premises after the Term, Tenant shall become a tenant from month to month after the expiration
or earlier termination of the Term, and in such case Tenant shall continue to pay (a) the Basic
Annual Rent in accordance with Article 7, as adjusted in accordance with Article 8,
and (b) Tenant’s Operating Expense Obligation. Any such month-to-month tenancy shall be subject to
every other term, covenant and agreement contained herein.

15.2 Notwithstanding the foregoing, if Tenant remains in possession of the Premises after the
expiration or earlier termination of the Term without Landlord’s prior written consent, Tenant
shall become a tenant at sufferance subject to the terms and conditions of this Lease, except that
the monthly rent shall be equal to one hundred fifty percent (150%) of the Rent in effect during
the last thirty (30) days of the Term.

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

 

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15.4 The foregoing provisions of this Article 15 are in addition to and do not affect
Landlord’s right of reentry or any other rights of Landlord hereunder or as otherwise provided by
Applicable Laws.

16. Taxes on Tenant’s Property.

16.1 Tenant shall pay prior to delinquency any and all taxes levied against any personal
property or trade fixtures placed by Tenant in or about the Premises.

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

16.3 If any improvements in or alterations to the Premises, whether owned by Landlord or
Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed
for real property tax purposes at a valuation higher than the valuation at which improvements
conforming to Landlord’s building standards (the “Building Standard”) in other spaces in
the Building are assessed, then the real property taxes and assessments levied against Landlord or
the Building by reason of such excess assessed valuation shall be deemed to be taxes levied against
personal property of Tenant and shall be governed by the provisions of Section 16.2 above.
Any such excess assessed valuation due to improvements in or alterations to space in the Building
leased by other tenants of Landlord shall not be included in the Operating Expenses defined in
Article 9, but shall be treated, as to such other tenants, as provided in this Section
16.3. If the records of the County Assessor are available and sufficiently detailed to serve
as a basis for determining whether said Tenant improvements or alterations are assessed at a higher
valuation than the Building Standard, then such records shall be binding on both Landlord and
Tenant.

17. Condition of Premises. Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation or warranty with respect to the condition of the Premises, the
Building or the Project, or with respect to the suitability of the Premises, the Building or the
Project for the conduct of Tenant’s business. Tenant’s taking of possession of the Premises shall,
except as otherwise agreed to in writing by Landlord and Tenant, conclusively establish that the
Premises, the Building and the Project were at such time in good, sanitary and satisfactory
condition and repair.

18. Common Areas and Parking Facilities.

18.1 Tenant shall have the non-exclusive right, in common with others, to use the Common
Areas, subject to the rules and regulations adopted by Landlord and attached hereto as Exhibit D,
together with such other reasonable and nondiscriminatory rules and regulations as are hereafter
promulgated by Landlord in its sole and absolute discretion (the “Rules and Regulations”).
Tenant shall faithfully observe and comply with the Rules and Regulations. Landlord shall not be
responsible to Tenant for the violation or non-performance by any other tenant or any agent,
employee or invitee thereof of any of the Rules and Regulations.

18.2 Tenant shall have a non-exclusive, revocable license to use its pro-rata share of the
parking facilities serving the Building in common on an unreserved basis with other tenants of the
Building and the Project.

18.3 Tenant agrees not to unreasonably overburden the parking facilities and agrees to
cooperate with Landlord and other tenants in the use of the parking facilities. Landlord reserves
the right to determine that parking facilities are becoming overcrowded and to limit Tenant’s use
thereof. Upon such determination, Landlord may reasonably allocate parking spaces among Tenant and
other tenants of the Building or the Project. Nothing in this Section, however, is intended to
create an affirmative duty on Landlord’s part to monitor parking.

18.4 Landlord reserves the right to modify the Common Areas, including the right to add or
remove exterior and interior landscaping and to subdivide real property. Tenant acknowledges that
Landlord specifically reserves the right to allow the exclusive use of corridors
and restroom facilities located on specific floors to one or more tenants occupying such
floors; provided, however, that Tenant shall not be deprived of the use of the
corridors reasonably required to serve the Premises or of restroom facilities serving the floor
upon which the Premises are located.

 

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19. Utilities and Services.

19.1 Tenant shall pay to Landlord, each month as Additional Rent, the Electric Payment Amount.
The Electric Payment Amount shall be increased to the extent that Tenant’s usage or the cost to
Landlord of providing electricity increases over the Base Year. In addition, and notwithstanding
anything in this Section 19 to the contrary, to the extent (a) the same exceed the Base
Year costs, (b) the same are incurred for Tenant’s activities in the Premises outside of Business
Hours or (c) Tenant is otherwise liable therefor pursuant to this Section 19, Tenant shall
pay for all gas, heat and other utilities supplied to the Premises (provided that light and
power are included in the Electric Payment amount, as the same may be increased pursuant to this
lease), together with any fees, surcharges and taxes thereon (each a “Utility”
collectively, the “Utilities”). If any such Utility is not separately metered to Tenant, to
the extent the same exceed the Base Year costs, Tenant shall pay a reasonable proportion (to be
determined by Landlord) of all charges of such Utility jointly metered with other premises as part
of Tenant’s Operating Expense Obligation or, in the alternative, Landlord may, at its option,
monitor the usage of such Utilities by Tenant and charge Tenant with the cost of purchasing,
installing and monitoring such metering equipment, which cost shall be paid by Tenant as Additional
Rent.

19.2 Landlord shall not be liable for, nor shall any eviction of Tenant result from the
failure to furnish any such utility or service, whether or not such failure is caused by accident;
breakage; repair; force of nature; act of God; act of terrorism; strike, lockout or other labor
disturbance or labor dispute of any character; governmental regulation, moratorium or other
governmental action; or Landlord’s inability, despite the exercise of reasonable diligence or by
any other cause, including Landlord’s gross negligence, to furnish any such utility or service
(collectively, “Force Majeure”). In the event of such failure, Tenant shall not be
entitled to any abatement or reduction of Rent, nor shall Tenant be relieved from the operation of
any covenant or agreement of this Lease.

19.3 Tenant shall pay for, prior to delinquency of payment therefor, any Utilities and
services that may be furnished to the Premises during (to the extent Tenant is liable therefor
under this Section 19) or, if Tenant occupies the Premises after the expiration or earlier
termination of the Term, after the Term.

19.4 Tenant shall not, without Landlord’s prior written consent, use any device in the
Premises (including, without limitation, data processing machines) that will in any way (a)
increase the amount of ventilation, air exchange, gas, steam, electricity or water beyond the
existing capacity of the Building as proportionately allocated to the Premises based upon Tenant’s
Pro Rata Share as usually furnished or supplied for the use set forth in Section 2.2 or (b)
exceed Tenant’s Pro Rata Share of the capacity to provide such utilities or services.

19.5 If Tenant shall require Utilities or services in excess of those usually furnished or
supplied for tenants in similar spaces in the Building by reason of Tenant’s equipment or extended
hours of business operations, then Tenant shall first procure Landlord’s consent for the use
thereof, which consent Landlord may condition upon the availability of such excess Utilities or
services, and Tenant shall pay as Additional Rent an amount equal to the cost of providing such
excess utilities and services.

19.6 Utilities and services provided by Landlord to the Premises shall be paid by Tenant
directly to the supplier of such Utility or service, except as this Lease expressly provides.

19.7 Landlord shall provide water in Common Areas for lavatory purposes only;
provided, however, that if Landlord determines that Tenant requires, uses or
consumes water for any purpose other than ordinary lavatory purposes, Landlord may install a water
meter and thereby measure Tenant’s water consumption for all purposes. Tenant shall pay Landlord
for the costs of such meter and the installation thereof and, throughout the duration of Tenant’s
occupancy of the Premises, Tenant shall keep said meter and installation equipment in good working
order and repair at Tenant’s sole cost and expense. If Tenant fails to so maintain such meter and
equipment, Landlord may repair or replace the same and shall collect the costs
therefor from Tenant. Tenant agrees to pay for water consumed, as shown on said meter, as and
when bills are rendered. If Tenant fails to timely make such payments, Landlord may pay such
charges and collect the same from Tenant. Any such costs or expenses incurred, or payments made by
Landlord for any of the reasons or purposes hereinabove stated, shall be deemed to be Additional
Rent payment by Tenant and collectible by Landlord as such.

 

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19.8 Landlord reserves the right to stop service of the elevator, plumbing, ventilation, air
conditioning and electric systems, when Landlord deems necessary or desirable, due to accident,
emergency or the need to make repairs, alterations or improvements, until such repairs, alterations
or improvements shall have been completed, and Landlord shall further have no responsibility or
liability for failure to supply elevator facilities, plumbing, ventilation, air conditioning or
electric service when prevented from doing so by Force Majeure or a failure by a third party to
deliver gas, oil or another suitable fuel supply, or Landlord’s inability by exercise of reasonable
diligence to obtain gas, oil or another suitable fuel. Without limiting the foregoing, it is
expressly understood and agreed that any covenants on Landlord’s part to furnish any service
pursuant to any of the terms, covenants, conditions, provisions or agreements of this Lease, or to
perform any act or thing for the benefit of Tenant, shall not be deemed breached if Landlord is
unable to furnish or perform the same by virtue of Force Majeure.

19.9 Subject to the provisions of this Article 19, Landlord shall furnish the electric
energy that Tenant shall reasonably require in the Premises for the purposes permitted under this
Lease. Except for electric energy required to operate motors on the air handlers providing HVAC
(the “HVAC Electric”), such electric energy shall be furnished through a meter or meters
and related equipment, installed, serviced, maintained, monitored, and as appropriate from time to
time upgraded by Landlord at Tenant’s expense, measuring the amount of electric energy furnished to
the Premises. Tenant shall pay for electric energy (for which it is liable for payment under this
Section 19) in accordance with Section 19.1 and Article 51 within ten (10)
days after receipt of any bills related thereto. The amount charged for electric energy furnished
to the Premises, excluding HVAC Electric (“Basic Electric”) shall be 105% of Landlord’s
cost including, without limitation, those charges applicable to or computed on the basis of
electric consumption, demand and hours of use, any sales or other taxes regularly passed on to
Landlord by such public utility company, fuel rate adjustments and surcharges, and weighted in each
case to reflect differences in consumption or demand applicable to each rate level. Tenant and its
authorized representatives may have access to such meter or meters (if any) on at least three (3)
days’ notice to Landlord, for the purposes of verifying Landlord’s meter readings (if any). From,
time to time during the Term of this lease, Landlord may, in its sole discretion, install or
eliminate, or increase or reduce the number of, such meters or vary the portions of the Premises
which they serve or replace any or all of such meters.

19.10 If pursuant to any Applicable Laws, the charges to Tenant pursuant to Section
19.9 shall be reduced below that to which Landlord is entitled under such Section, the
deficiency shall be paid by Tenant within ten (10) days after being billed therefor, as additional
rent for the use and maintenance of the electric distribution system of the Building.

19.11 Landlord shall not be liable in any event to Tenant for any failure or defect in the
supply or character of electric energy furnished to the Premises by reason of any requirement, act
or omission of the public utility serving the Building with electric energy or for any other reason
not attributable solely to Landlord’s willful misconduct or gross negligence.

19.12 Landlord shall furnish and install all replacement lighting tubes, lamps, bulbs and
ballasts required in the Premises, and Tenant shall pay to Landlord or its designated contractor
upon demand the then established charges therefor of Landlord or its designated contractor, as the
case may be. Tenant may elect, by written notice to Landlord, to furnish and install such
replacement lighting tubes, lamps, bulbs and ballasts.

19.13 Tenant’s use of electric energy in the Premises shall not at any time exceed the
capacity of any of the electrical conductors and equipment in or otherwise serving the Premises.
In order to insure that such capacity is not exceeded and to avert possible adverse effect upon the
Building’s distribution of electricity via the Building’s electric system, Tenant shall not,
without Landlord’s prior consent in each instance (which shall not be unreasonably withheld, based
upon availability of electric energy in the Building as allocated by Landlord to various areas of
the Building) connect any fixtures, appliances or equipment (other than normal business machines)
to the Building’s electric system or make any alterations or additions to the electric system of
the Premises existing on the date hereof. Should Landlord grant such consent, all additional
risers, distribution cables, or other equipment required therefor shall be provided by Landlord and
the cost thereof shall be paid by Tenant to Landlord on demand (or, at Tenant’s option, shall be
provided by Tenant pursuant to plans and contractors approved by Landlord, and otherwise in
accordance with the provisions of the Lease). Landlord shall have the right to require Tenant to
pay sums on account of such cost prior to the installation of any such risers or equipment.

 

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19.14 If required by any Applicable Laws, Landlord, upon at least sixty (60) days’ notice to
Tenant, may discontinue Landlord’s provision of electric energy hereunder. If Landlord
discontinues provision of electric energy pursuant to this Section, Tenant shall not be released
from any liability under this Lease, except that as of the date of such discontinuance, Tenant’s
obligation to pay Landlord Additional Charges under Section 19.9 for electric energy
thereafter supplied to the Premises shall cease. As of such date, Landlord shall permit Tenant to
receive electric energy directly from the public utility company supplying electric energy to the
Project, and Tenant shall pay all costs and expenses of obtaining such direct electrical service.
Such electric energy may be furnished to Tenant by means of the then existing Building system
feeders, risers and wiring to the extent that the same are available, suitable and safe for such
purpose. All meters and additional panel boards, feeders, risers, wiring and other conductors and
equipment which may be required to obtain electric energy directly from such public utility company
shall be furnished and installed by Landlord at Landlord’s expense (which shall constitute an
Operating Expense, amortized on a straight line basis over the useful life of the items in
question, as reasonably determined by Landlord).

20. Alterations.

20.1 Tenant shall make no additions, improvements or alterations in or to the Premises or
engage in any construction, demolition, reconstruction, renovation, or other work (whether major or
minor) of any kind in, at, or serving the Premises (“Alterations”) without Landlord’s prior
written approval, which approval Landlord shall not unreasonably withhold. Landlord may, however,
withhold its approval, in its sole and absolute discretion, if any proposed Alteration affects the
following (the “Building Systems and Structures”): (a) any structural portions of the
Building, including exterior walls, roof, foundation or core of the Building, (b) the exterior of
the Building, or (c) any Building systems, including elevator, plumbing, air conditioning, heating,
electrical, security, life safety and power. Tenant shall, in making any Alterations, use only
those architects, contractors, suppliers and mechanics of which Landlord has given prior written
approval, which approval shall be in Landlord’s reasonable discretion. In seeking Landlord’s
approval, Tenant shall provide Landlord, at least fourteen (14) days in advance of any proposed
construction, with plans, specifications, bid proposals, work contracts, requests for laydown areas
and such other information concerning the nature and cost of the Alterations as Landlord may
reasonably request.

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

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

20.4 Any work performed on the Premises or the Building by Tenant or Tenant’s contractors
shall be done at such times and in such manner as Landlord may from time to time designate. Tenant
covenants and agrees that all work done by Tenant or Tenant’s contractors shall be performed in
full compliance with Applicable Laws. Within thirty (30) days after Tenant substantially completes
any such work, Tenant shall provide Landlord with complete “as-built” drawing print sets and
electronic CADD files (or files in such other current format in common use as Landlord reasonably
approves or requires) on disc showing any changes in the Premises.

20.5 Before commencing any work, Tenant shall give Landlord at least fourteen (14) days’ prior
written notice of the proposed commencement of such work and shall, if required by Landlord,
secure, at Tenant’s own cost and expense, a completion and lien indemnity bond satisfactory to
Landlord for said work.

 

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20.6 All alterations, attached equipment, decorations, fixtures, trade fixtures, additions and
improvements, subject to Section 20.8, attached to or built into the Premises, made by
either of the Parties, including, without limitation, all floor and wall coverings, built-in
cabinet work and paneling, sinks and related plumbing fixtures, ductwork, conduits, electrical
panels and circuits, shall (unless, prior to such construction or installation, Landlord elects
otherwise) become the property of Landlord upon the expiration or earlier termination of the Term,
and shall remain upon and be surrendered with the Premises as a part thereof.

20.7 Tenant shall repair any damage to the Premises caused by Tenant’s removal of any property
from the Premises. During any such restoration period, Tenant shall pay Rent to Landlord as
provided herein as if said space were otherwise occupied by Tenant.

20.8 Except as to those items listed on Exhibit C, which exhibit shall be provided by
Tenant to Landlord within thirty (30) days after the Term Commencement Date and attached hereto,
and which shall be subject to Landlord’s reasonable approval all business and trade fixtures,
machinery and equipment, built-in furniture and cabinets, together with all additions and
accessories thereto, that are attached to or built into the Premises shall be and remain the
property of Landlord and shall not be moved by Tenant at any time during the Term. If Tenant shall
fail to remove any of its effects (which shall not include any items described as Landlord’s
property under the terms of this paragraph) from the Premises prior to termination of this Lease,
then Landlord may, at its option, remove the same in any manner that Landlord shall choose and
store said effects without liability to Tenant for loss thereof or damage thereto, and Tenant shall
pay Landlord, upon demand, any costs and expenses incurred due to such removal and storage or
Landlord may, at its sole option and without notice to Tenant, sell such property or any portion
thereof at private sale and without legal process for such price as Landlord may obtain and apply
the proceeds of such sale against any (a) amounts due by Tenant to Landlord under this Lease and
(b) any expenses incident to the removal, storage and sale of said personal property.

20.9 Notwithstanding any other provision of this Article 20 to the contrary, in no
event shall Tenant remove any improvement from the Premises as to which Landlord contributed
payment, including, without limitation, the Tenant Improvements made pursuant to the Work Letter,
without Landlord’s prior written consent, which consent Landlord may withhold in its sole and
absolute discretion.

20.10 [Intentionally omitted]

20.11 Within sixty (60) days after final completion of the Tenant Improvements (or any other
alterations, improvement or additions performed by Tenant with respect to the Premises), Tenant
shall submit to Landlord documentation showing the amounts expended by Tenant with respect to such
Tenant Improvements (or any other alterations, improvement or additions performed by Tenant with
respect to the Premises), together with supporting documentation reasonably acceptable to Landlord.

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

21. Repairs and Maintenance.

21.1 Landlord shall repair and maintain the structural and exterior portions and Common Areas
of the Building and the Project, including, without limitation, roofing and covering materials,
foundations, exterior walls, plumbing, fire sprinkler systems (if any), heating, ventilating, air
conditioning, elevators, and electrical systems installed or furnished by Landlord. Any costs
related to the repair or maintenance activities specified in this Section 21.1 shall be
included as a part of Operating Expenses, unless such repairs or maintenance is required in whole
or in part because of any act, neglect, fault or omissions of Tenant, its agents, servants,
employees or invitees, in which case Tenant shall pay to Landlord the cost of such repairs and
maintenance.

21.2 Except for services of Landlord, if any, required by Section 21.1, Tenant shall
at Tenant’s sole cost and expense maintain and keep the Premises and every part thereof in good
condition and repair, damage thereto from ordinary wear and tear excepted. Tenant shall, upon the
expiration or sooner termination of the Term, surrender the Premises to Landlord in as good
of a condition as when received, ordinary wear and tear excepted. Landlord shall have no
obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof,
other than pursuant to the terms and provisions of the Work Letter.

 

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21.3 Landlord shall not be liable for any failure to make any repairs or to perform any
maintenance that is an obligation of Landlord unless such failure shall persist for an unreasonable
time after Tenant provides Landlord with written notice of the need of such repairs or maintenance.
Tenant waives its rights under Applicable Laws now or hereafter in effect to make repairs at
Landlord’s expense.

21.4 Repairs under this Article 21 that are obligations of Landlord are subject to
allocation among Tenant and other tenants as Operating Expenses, except as otherwise provided in
this Article 21.

21.5 This Article 21 relates to repairs and maintenance arising in the ordinary course
of operation of the Building and the Project and any related facilities. In the event of fire,
earthquake, flood, vandalism, war, terrorism, natural disaster or similar cause of damage or
destruction, Article 25 shall apply in lieu of this Article 21.

22. Liens.

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

22.2 Should Tenant fail to discharge or bond against any lien of the nature described in
Section 22.1, Landlord may, at Landlord’s election, pay such claim or post a bond or
otherwise provide security to eliminate the lien as a claim against title, and Tenant shall
immediately reimburse Landlord for the costs thereof as Additional Rent.

22.3 In the event that Tenant leases or finances the acquisition of office equipment,
furnishings or other personal property of a removable nature utilized by Tenant in the operation of
Tenant’s business, Tenant warrants that any Uniform Commercial Code financing statement executed by
Tenant shall, upon its face or by exhibit thereto, indicate that such financing statement is
applicable only to removable personal property of Tenant located within the Premises. In no event
shall the address of the Building be furnished on a financing statement without qualifying language
as to applicability of the lien only to removable personal property located in an identified suite
leased by Tenant. Should any holder of a financing statement executed by Tenant record or place of
record a financing statement that appears to constitute a lien against any interest of Landlord or
against equipment that may be located other than within an identified suite leased by Tenant,
Tenant shall, within ten (10) days after filing such financing statement, cause (a) a copy of the
lender security agreement or other documents to which the financing statement pertains to be
furnished to Landlord to facilitate Landlord’s ability to demonstrate that the lien of such
financing statement is not applicable to Landlord’s interest and (b) Tenant’s lender to amend such
financing statement and any other documents of record to clarify that any liens imposed thereby are
not applicable to any interest of Landlord in the Premises, the Building or the Project.

23. Indemnification and Exculpation.

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

 

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23.2 Notwithstanding any provision of Section 23.1 to the contrary, Landlord shall not
be liable to Tenant for, and Tenant assumes all risk of, damage to personal property or scientific
research, including, without limitation, loss of records kept by Tenant within the Premises and
damage or losses caused by fire, electrical malfunction, gas explosion or water damage of any type
(including, without limitation, broken water lines, malfunctioning fire sprinkler systems, roof
leaks or stoppages of lines), unless any such loss is due to Landlord’s willful disregard of
written notice by Tenant of need for a repair that Landlord is responsible to make for an
unreasonable period of time. Tenant further waives any claim for injury to Tenant’s business or
loss of income relating to any such damage or destruction of personal property as described in this
Section 23.2.

23.3 Landlord shall not be liable for any damages arising from any act, omission or neglect of
any other tenant in the Building or the Project, or of any other third party.

23.4 Tenant acknowledges that security devices and services, if any, while intended to deter
crime, may not in given instances prevent theft or other criminal acts. Landlord shall not be
liable for injuries or losses caused by criminal acts of third parties, and Tenant assumes the risk
that any security device or service may malfunction or otherwise be circumvented by a criminal. If
Tenant desires protection against such criminal acts, then Tenant shall, at Tenant’s sole cost and
expense, obtain appropriate insurance coverage.

23.5 The provisions of this Article 23 shall survive the expiration or earlier
termination of this Lease.

24. Insurance; Waiver of Subrogation.

24.1 Landlord shall maintain insurance for the Building and the Project in amounts equal to
full replacement cost (exclusive of the costs of excavation, foundations and footings, and without
reference to depreciation taken by Landlord upon its books or tax returns) or such lesser coverage
as Landlord may elect, provided that such coverage shall not be less than ninety percent
(90%) of such full replacement cost or the amount of such insurance Landlord’s lender, mortgagee or
beneficiary (each, a “Lender”), if any, requires Landlord to maintain, providing protection
against any peril generally included within the classification “Fire and Extended Coverage,”
together with insurance against sprinkler damage (if applicable), vandalism and malicious mischief.
Landlord, subject to availability thereof, shall further insure, if Landlord deems it appropriate,
coverage against flood, environmental hazard, terrorism, earthquake, loss or failure of building
equipment, rental loss during the period of repairs or rebuilding, workmen’s compensation insurance
and fidelity bonds for employees employed to perform services. Notwithstanding the foregoing,
Landlord may, but shall not be deemed required to, provide insurance for any improvements installed
by Tenant or that are in addition to the standard improvements customarily furnished by Landlord,
if any, without regard to whether or not such are made a part of or are affixed to the Building.
Any costs incurred by Landlord pursuant to this Section 24.1 shall constitute a portion of
Operating Expenses.

24.2 In addition, Landlord shall carry public liability insurance with a single limit of not
less than Ten Million Dollars ($10,000,000) for death or bodily injury, or property damage with
respect to the Project. Any costs incurred by Landlord pursuant to this Section 24.2 shall
constitute a portion of Operating Expenses.

24.3 Tenant shall, at its own cost and expense, procure and maintain in effect, beginning on
the Term Commencement Date or the date of occupancy, whichever occurs first, and continuing
throughout the Term (and occupancy by Tenant, if any, after termination of this Lease)
comprehensive public liability insurance with limits of not less than Ten Million Dollars
($10,000,000) per occurrence for death or bodily injury and not less than Two Million Dollars
($2,000,000) for property damage with respect to the Premises.

24.4 The insurance required to be purchased and maintained by Tenant pursuant to this Lease
shall name Landlord, BioMed Realty, L.P., BioMed Realty Trust, Inc., and their respective Lenders
(“Landlord Parties” as additional insureds. Said insurance shall be with companies having
a rating of not less than policyholder rating of A and financial category rating of at least Class
XII in “Best’s Insurance Guide.” Tenant shall obtain for Landlord from the insurance companies or
cause the insurance companies to furnish certificates of coverage to Landlord. No such policy
shall be cancelable or subject to reduction of coverage or other modification or
cancellation except after thirty (30) days’ prior written notice to Landlord from the insurer.
All such policies shall be written as primary policies, not contributing with and not in excess of
the coverage that Landlord may carry. Tenant’s policy may be a “blanket policy” that specifically
provides that the amount of insurance shall not be prejudiced by other losses covered by the
policy. Tenant shall, at least twenty (20) days prior to the expiration of such policies, furnish
Landlord with renewals or binders. Tenant agrees that if Tenant does not take out and maintain
such insurance, Landlord may (but shall not be required to) procure said insurance on Tenant’s
behalf and at its cost to be paid by Tenant as Additional Rent.

 

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

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

24.7 Landlord and Tenant each hereby waive any and all rights of recovery against the other or
against the officers, directors, employees, agents and representatives of the other on account of
loss or damage occasioned by such waiving party or its property or the property of others under
such waiving party’s control, in each case to the extent that such loss or damage is insured
against under any fire and extended coverage insurance policy that either Landlord or Tenant may
have in force at the time of such loss or damage. Such waivers shall continue so long as their
respective insurers so permit. Any termination of such a waiver shall be by written notice to the
other party, containing a description of the circumstances hereinafter set forth in this
Section 24.7. Landlord and Tenant, upon obtaining the policies of insurance required or
permitted under this Lease, shall give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease. If such policies shall not be
obtainable with such waiver or shall be so obtainable only at a premium over that chargeable
without such waiver, then the party seeking such policy shall notify the other of such conditions,
and the party so notified shall have ten (10) days thereafter to either (a) procure such insurance
with companies reasonably satisfactory to the other party or (b) agree to pay such additional
premium (in Tenant’s case, in the proportion that the area of the Premises bears to the insured
area). If the parties do not accomplish either (a) or (b), then this Section 24.7 shall
have no effect during such time as such policies shall not be obtainable or the party in whose
favor a waiver of subrogation is desired refuses to pay the additional premium. If such policies
shall at any time be unobtainable, but shall be subsequently obtainable, then neither party shall
be subsequently liable for a failure to obtain such insurance until a reasonable time after
notification thereof by the other party. If the release of either Landlord or Tenant, as set forth
in the first sentence of this Section 24.7, shall contravene Applicable Laws, then the
liability of the party in question shall be deemed not released but shall be secondary to the other
party’s insurer.

24.8 Landlord may require insurance policy limits required under this Lease to be raised to
conform with requirements of Landlord’s Lender or to bring coverage limits to levels then being
required of new tenants within the Project.

25. Damage or Destruction.

25.1 In the event of a partial destruction of the Building or the Project by fire or other
perils covered by extended coverage insurance not exceeding twenty-five percent (25%) of the full
insurable value thereof, and provided that (a) the damage thereto is such that the Building
or the Project may be repaired, reconstructed or restored within a period of six (6) months from
the date of the happening of such casualty and (b) Landlord shall receive insurance proceeds
sufficient to cover the cost of such repairs (except for any deductible amount provided by
Landlord’s policy, which deductible amount, if paid by Landlord, shall constitute an Operating
Expense), Landlord shall commence and proceed diligently with the work of repair,
reconstruction and restoration of the Building or the Project, as applicable, and this Lease
shall continue in full force and effect.

 

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25.2 In the event of any damage to or destruction of the Building or the Project other than as
described in Section 25.1, Landlord may elect to repair, reconstruct and restore the
Building or the Project, as applicable, in which case this Lease shall continue in full force and
effect. If Landlord elects not to repair the Building or the Project, as applicable, or if
Landlord does not timely repair the Building or the Project, as applicable, in accordance with
Section 25.6, then this Lease shall terminate as of the date of such damage or destruction,
except for those terms that, by their express terms, survive the expiration or earlier termination
hereof.

25.3 Landlord shall give written notice to Tenant within sixty (60) days following the date of
damage or destruction of its election not to repair, reconstruct or restore the Building or the
Project, as applicable,.

25.4 Upon any termination of this Lease under any of the provisions of this Article
25, the parties shall be released thereby without further obligation to the other from the date
possession of the Premises is surrendered to the Landlord, except with regard to (a) items
occurring prior to the damage or destruction, (b) provisions of this Lease that, by their express
terms, survive the expiration or earlier termination hereof and (c) the Security Deposit, which
shall be handled in accordance with Article 12 hereof.

25.5 In the event of repair, reconstruction and restoration as provided in this Article
25, all Rent to be paid by Tenant under this Lease shall be abated proportionately based on the
extent to which Tenant’s use of the Premises is impaired during the period of such repair,
reconstruction or restoration, unless Landlord provides Tenant with other space during the period
of repair that, in Tenant’s reasonable opinion, is suitable for the temporary conduct of Tenant’s
business.

25.6 Notwithstanding anything to the contrary contained in this Article 25, should
Landlord be delayed or prevented from completing the repair, reconstruction or restoration of the
damage or destruction to the Premises after the occurrence of such damage or destruction by Force
Majeure, then the time for Landlord to commence or complete repairs shall be extended on a
day-for-day basis; provided, however, that, at Landlord’s election, Landlord shall
be relieved of its obligation to make such repair, reconstruction or restoration. Tenant shall be
released from any obligations under this Lease (except with regard to those provisions that, by
their express terms, survive the expiration or earlier termination hereof) if Landlord determines
(a) the repair, reconstruction or restoration required to be performed by Landlord cannot be
completed within twelve (12) months after the date of damage or destruction or (b) on the date that
is twelve (12) months after the date of damage or destruction that the repair, reconstruction or
restoration required to be performed by Landlord to provide Tenant use of the Premises is not then
Substantially Complete.

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

25.8 Notwithstanding anything to the contrary contained in this Article 25, Landlord
shall not have any obligation whatsoever to repair, reconstruct or restore the Premises if the
damage resulting from any casualty covered under this Article 25 occurs during the last
twenty-four (24) months of the Term or any extension hereof, or to the extent that insurance
proceeds are not available therefor.

25.9 Landlord’s obligation, should it elect or be obligated to repair or rebuild, shall be
limited to the Property and the Building; provided that Tenant shall, at its expense,
replace or fully repair all of Tenant’s personal property and any alterations installed by Tenant
existing at the time of such damage or destruction. If the Property or the Building is to be
repaired in accordance with the foregoing, Landlord shall make available to Tenant any portion of
insurance proceeds it receives that are allocable to the alterations constructed by Tenant pursuant
to this Lease, provided Tenant is not then in default under this Lease.

 

20

 

26. Eminent Domain.

26.1 In the event the whole of the Premises, or such part thereof as shall substantially
interfere with the Tenant’s use and occupancy thereof, shall be taken for any public or
quasi-public purpose by any lawful power or authority by exercise of the right of appropriation,
condemnation or eminent domain, or sold to prevent such taking, Tenant or Landlord may terminate
this Lease effective as of the date possession is required to be surrendered to said authority.

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

26.3 Tenant shall be entitled to any award that is specifically awarded as compensation for
(a) the taking of Tenant’s personal property (as determined in accordance with Article 20)
that was installed at Tenant’s expense and (b) the costs of Tenant moving to a new location.
Except as set forth in the previous sentence, any award for such taking shall be the property of
Landlord.

26.4 If, upon any taking of the nature described in this Article 26, this Lease
continues in effect, then Landlord shall promptly proceed to restore the Premises, the Building and
the Project, as applicable, to substantially their same condition prior to such partial taking. To
the extent such restoration is feasible, as determined by Landlord in its sole and absolute
discretion, the Rent shall be decreased by a number, the numerator of which is the rental value of
the Premises prior to such taking, and the denominator of which is the rental value of the Premises
after such taking.

27. Defaults and Remedies.

27.1 Late payment by Tenant to Landlord of Rent and other sums due shall cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult
and impracticable to ascertain. Such costs include, but are not limited to, processing and
accounting charges and late charges that may be imposed on Landlord by the terms of any mortgage or
trust deed covering the Premises. Therefore, if any installment of Rent due from Tenant is not
received by Landlord within five (5) business days after the date such payment is due, Tenant shall
pay to Landlord an additional sum of four percent (4%) of the overdue Rent as a late charge. The
parties agree that this late charge represents a fair and reasonable estimate of the costs that
Landlord shall incur by reason of late payment by Tenant. In addition to the late charge, Rent not
paid when due shall bear interest from the fifth (5th) day after the date due until paid
at the lesser of (a) twelve percent (12%) per annum or (b) the maximum rate permitted by Applicable
Laws.

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

 

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27.3 If Tenant fails to pay any sum of money required to be paid by it hereunder, or shall
fail to perform any other act on its part to be performed hereunder, Landlord may, without waiving
or releasing Tenant from any obligations of Tenant, but shall not be obligated to, make such
payment or perform such act; provided that such failure by Tenant continues for three (3)
(in the event of monetary defaults) or ten (10) (in the event of non-monetary defaults) business
days after Landlord delivers written notice to Tenant demanding performance by Tenant; or
provided that such failure by Tenant unreasonably interfered with the use of the Building
by any other tenant or with the efficient operation of the Building, or resulted or, absent
intervention by Landlord, could have resulted in a violation of Applicable Laws or the cancellation
of an insurance policy maintained by Landlord. Notwithstanding the foregoing, in the event fo an
emergency, Landlord shall have the right to enter the Premises and act in accordance with its
rights as provided elsewhere in this Lease. Tenant shall pay to Landlord as Additional Rent all
sums so paid or incurred by Landlord, together with interest thereon, from the date such sums were
paid or incurred, at the annual rate equal to twelve percent (12%) per annum or highest rate
permitted by Applicable Laws, whichever is less.

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

(a) The abandonment or vacation of the Premises by Tenant;

(b) The failure by Tenant to make any payment of Rent, as and when due, beyond any applicable
notice and cure periods;

(c) The failure by Tenant to observe or perform any obligation or covenant contained herein
(other than described in Subsections 27.4(a) and 27.4(b)) to be performed by
Tenant, where such failure shall continue for a period of ten (10) days after delivery of written
notice thereof from Landlord to Tenant; provided that, if the nature of Tenant’s default is
such that it reasonably requires more than ten (10) days to cure, Tenant shall not be deemed to be
in default if Tenant shall commence such cure within said ten (10) day period and thereafter
diligently prosecute the same to completion; and provided, further, that such cure is
completed no later than ninety (90) days from the date of Tenant’s receipt of written notice from
Landlord;

(d) Tenant makes an assignment for the benefit of creditors;

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

(f) Tenant files a voluntary petition under the United States Bankruptcy Code or any successor
statute (the “Code”);

(g) Any involuntary petition if filed against Tenant under any chapter of the Code and is not
dismissed within one hundred twenty (120) days;

(h) Failure to deliver an estoppel certificate in accordance with Article 30; or

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

Notices given under this Section 27.4 shall specify the alleged default and shall
demand that Tenant perform the provisions of this Lease or pay the Rent that is in arrears, as the
case may be, within the applicable period of time, or quit the Premises. No such notice shall be
deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such notice.

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

 

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(a) The worth at the time of award of any unpaid Rent that had accrued at the time of such
termination; plus

(b) The worth at the time of award of the amount by which the unpaid Rent that would have
accrued during the period commencing with termination of the Lease and ending at the time of award
exceeds that portion of the loss of Landlord’s rental income from the Premises that Tenant proves
to Landlord’s reasonable satisfaction could have been reasonably avoided, taking into account the
dates on which such unpaid Rent would have been due and payable; plus

(c) The worth at the time of award of the amount by which the unpaid Rent for the balance of
the Term after the time of award exceeds that portion of the loss of Landlord’s rental income from
the Premises that Tenant proves to Landlord’s reasonable satisfaction could have been reasonably
avoided taking into account the dates on which such unpaid Rent would have been due and payable;
plus

(d) 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 that in the ordinary course of
things would be likely to result therefrom, including, without limitation, the cost of restoring
the Premises to the condition required under the terms of this Lease; plus

(e) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as
may be permitted from time to time by Applicable Laws.

As used in Subsections 27.5(a) and 27.5(b), “worth at the time of award” shall be
computed by allowing interest at the rate specified in Section 27.1. As used in
Subsection 27.5(c) above, the “worth at the time of the award” shall be computed by taking
the present value of such amount, using the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award plus one (1) percentage point.

27.6 If Landlord does not elect to terminate this Lease as provided in Section 27.5,
then Landlord may, from time to time, recover all Rent as it becomes due under this Lease. At any
time thereafter, if Tenant is still in Default, Landlord may elect to terminate this Lease and to
recover damages to which Landlord is entitled.

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

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

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

(c) Third, to the payment of Rent and other charges due and unpaid hereunder; and

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

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

 

23

 

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

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

27.11 Landlord shall not be in default under this Lease unless Landlord fails to perform
obligations required of Landlord within a reasonable time, but in no event shall such failure to
continue for more than thirty (30) days after written notice from Tenant specifying the nature of
Landlord’s failure; provided, however, that if the nature of Landlord’s obligation
is such that more than thirty (30) days are required for its performance, then Landlord shall not
be in default if Landlord commences performance within such thirty (30) day period and thereafter
diligently prosecutes the same to completion.

27.12 In the event of any default by Landlord, Tenant shall give notice by registered or
certified mail to any (a) beneficiary of a deed of trust or (b) mortgagee under a mortgage covering
the Premises, the Building or the Project and to any landlord of any lease of land upon or within
which the Premises, the Building or the Project is located, and shall offer such beneficiary,
mortgagee or landlord a reasonable opportunity to cure the default, including time to obtain
possession of the Building by power of sale or a judicial action if such should prove necessary to
effect a cure; provided that Landlord shall furnish to Tenant in writing, upon written
request by Tenant, the names and addresses of all such persons who are to receive such notices.

28. Assignment or Subletting.

28.1 Except as hereinafter expressly permitted, Tenant shall not, either voluntarily or by
operation of law, directly or indirectly sell, hypothecate, assign, pledge, encumber or otherwise
transfer this Lease, or sublet the Premises or any part hereof (each, a “Transfer”),
without Landlord’s prior written consent, which consent Landlord may not unreasonably withhold or
delay.

28.2 In the event Tenant desires to effect a Transfer, then, at least thirty (30) but not more
than ninety (90) days prior to the date when Tenant desires the assignment or sublease to be
effective (the “Transfer Date”), Tenant shall provide written notice to Landlord (the
“Transfer Notice”) containing information (including references) concerning the character
of the proposed transferee, assignee or sublessee; the Transfer Date; any ownership or commercial
relationship between Tenant and the proposed transferee, assignee or sublessee; and the
consideration and all other material terms and conditions of the proposed Transfer, all in such
detail as Landlord shall reasonably require. Tenant shall also tender to Landlord reasonable
attorneys’ fees incurred by Landlord in reviewing Tenant’s request for such Transfer, not to exceed
One Thousand Five Hundred Dollars ($1,500).

28.3 Landlord, in determining whether consent should be given to a proposed Transfer, may give
consideration to (a) the financial strength of such transferee, assignee or sublessee
(notwithstanding Tenant remaining liable for Tenant’s performance), (b) any change in use that such
transferee, assignee or sublessee proposes to make in the use of the Premises, (c) Landlord’s
desire to exercise its rights under Section 28.8 to cancel this Lease and (d) any adverse
effect of the proposed Transfer on the status of Landlord’s indirect parent’s status as a Real
Estate Investment Trust under the Internal Revenue Code, as amended from time to time. In no event
shall Landlord be deemed to be unreasonable for declining to consent to a Transfer to a transferee,
assignee or sublessee of poor reputation, lacking financial qualifications, seeking a change in the
Permitted Use, or jeopardizing directly or indirectly the status of Landlord or any of Landlord’s
affiliates as a Real Estate Investment Trust under the Code.

 

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

(a) Tenant shall remain fully liable under this Lease during the unexpired Term;

(b) Tenant shall provide Landlord with evidence reasonably satisfactory to Landlord that the
value of Landlord’s interest under this Lease shall not be diminished or reduced by the proposed
Transfer. Such evidence shall include, without limitation, evidence respecting the relevant
business experience and financial responsibility and status of the proposed transferee, assignee or
sublessee;

(c) Tenant shall reimburse Landlord for Landlord’s actual costs and expenses, including,
without limitation, reasonable attorneys’ fees, charges and disbursements incurred in connection
with the review, processing and documentation of such request, not to exceed One Thousand Five
Hundred Dollars ($1,500);

(d) If Tenant’s transfer of rights or sharing of the Premises provides for the receipt by, on
behalf of or on account of Tenant of any consideration of any kind whatsoever (including, without
limitation, a premium rental for a sublease or lump sum payment for an assignment, but excluding
Tenant’s reasonable costs in marketing and subleasing the Premises or in selling personal property
or equipment to the proposed transferee, assignee or sublessee) in excess of the rental and other
charges due to Landlord under this Lease, Tenant shall pay fifty percent (50%) of all of such
excess to Landlord, prior to deductions for any transaction costs incurred by Tenant, including
marketing expenses, tenant improvement allowances actually provided by Tenant, alterations, cash
concessions, brokerage commissions, attorneys’ fees and free rent.. If said consideration consists
of cash paid to Tenant, payment to Landlord shall be made upon receipt by Tenant of such cash
payment;

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

(f) Landlord’s consent to any such Transfer shall be effected on Landlord’s forms;

(g) Tenant shall not then be in default hereunder in any respect;

(h) Such proposed transferee, assignee or sublessee’s use of the Premises shall be the same as
the Permitted Use;

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

(j) Tenant shall deliver to Landlord one executed copy of any and all written instruments
evidencing or relating to the Transfer;

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

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

(m) A list of Hazardous Materials (as defined in Section 40.7 below), certified by the
proposed transferee, assignee or sublessee to be true and correct, that the proposed transferee,
assignee or sublessee intends to use or store in the Premises. Additionally, Tenant shall deliver
to Landlord, on or before the date any proposed transferee, assignee or sublessee
takes occupancy of the Premises, all of the items relating to Hazardous Materials of such
proposed transferee, assignee or sublessee as described in Section 42.2.

 

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28.5 Any Transfer that is not in compliance with the provisions of this Article 28
shall be void and shall, at the option of Landlord, terminate this Lease.

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

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

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

29. Attorneys’ Fees. In the event of any litigation between Landlord and Tenant
arising out of or in connection with this Lease, then provided that one party substantially
prevails, such party shall be entitled to have and recover from the other party reasonable
attorneys’ fees, charges and disbursements and costs of suit.

30. Bankruptcy. In the event a debtor, trustee or debtor in possession under the
Code, or another person with similar rights, duties and powers under any other Applicable Laws,
proposes to cure any default under this Lease or to assume or assign this Lease and is obliged to
provide adequate assurance to Landlord that (a) a default shall be cured, (b) Landlord shall be
compensated for its damages arising from any breach of this Lease and (c) future performance of
Tenant’s obligations under this Lease shall occur, then such adequate assurances shall include any
or all of the following, as designated by Landlord in its sole and absolute discretion:

30.1 Those acts specified in the Code or other Applicable Laws as included within the meaning
of “adequate assurance,” even if this Lease does not concern a shopping center or other facility
described in such Applicable Laws;

30.2 A prompt cash payment to compensate Landlord for any monetary defaults or actual damages
arising directly from a breach of this Lease;

30.3 A cash deposit in an amount at least equal to the then-current amount of the Security
Deposit; or

30.4 The assumption or assignment of all of Tenant’s interest and obligations under this
Lease.

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

 

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32. Estoppel Certificate. Tenant shall, within ten (10) business days of receipt of
written notice from Landlord, execute, acknowledge and deliver a statement in writing substantially
in the form attached to this Lease as Exhibit E, or on any other form reasonably requested
by a proposed Lender or purchaser, (a) certifying that this Lease is unmodified and in full force
and effect (or, if modified, stating the nature of such modification and certifying that this Lease
as so modified is in full force and effect) and the dates to which rental and other charges are
paid in advance, if any, (b) acknowledging that there are not, to Tenant’s knowledge, any uncured
defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, and (c)
setting forth such further information with respect to this Lease or the Premises as may be
requested thereon. Any such statement may be relied upon by any prospective purchaser or
encumbrancer of all or any portion of the real property of which the Premises are a part. Tenant’s
failure to deliver such statement within such the prescribed time shall, at Landlord’s option,
constitute a Default under this Lease, and, in any event, shall be binding upon Tenant that the
Lease is in full force and effect and without modification except as may be represented by Landlord
in any certificate prepared by Landlord and delivered to Tenant for execution.

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

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

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

34. Limitation of Landlord’s Liability.

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

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

 

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34.3 Each of the covenants and agreements of this Article 34 shall be applicable to
any covenant or agreement either expressly contained in this Lease or imposed by Applicable Laws
and shall survive the expiration or earlier termination of this Lease.

35. Project Control by Landlord.

35.1 Landlord reserves full control over the Building and the Project to the extent not
inconsistent with Tenant’s enjoyment of the Premises as provided by this Lease. This reservation
includes, without limitation, Landlord’s right to subdivide the Project, convert the Building and
other buildings within the Project to condominium units, grant easements and licenses to third
parties, and maintain or establish ownership of the Building separate from fee title to the
Property.

35.2 Tenant shall, at Landlord’s request, promptly execute such further documents as may be
reasonably appropriate to assist Landlord in the performance of its obligations hereunder;
provided that Tenant need not execute any document that creates additional liability for
Tenant or that deprives Tenant of the quiet enjoyment and use of the Premises as provided by this
Lease.

35.3 Landlord may, at any and all reasonable times during non-Business Hours (or during
Business Hours if Tenant so requests), and upon no less than twenty-four (24) hours’ prior notice
(provided that no time restrictions shall apply or advance notice be required if an
emergency necessitates immediate entry), enter the Premises to (a) inspect the same and to
determine whether Tenant is in compliance with its obligations hereunder, (b) supply any service
Landlord is required to provide hereunder, (c) show the Premises to prospective purchasers or
tenants during the final year of the Term, (d) post notices of nonresponsibility, (e) access the
telephone equipment, electrical substation and fire risers and (f) alter, improve or repair any
portion of the Building other than the Premises for which access to the Premises is reasonably
necessary. In connection with any such alteration, improvement or repair as described in
Subsection 33.3(f) above, Landlord may erect in the Premises or elsewhere in the Project
scaffolding and other structures reasonably required for the alteration, improvement or repair work
to be performed. In no event shall Tenant’s Rent abate as a result of Landlord’s activities
pursuant to this Section 33.3; provided, however, that all such activities
shall be conducted in such a manner so as to cause as little interference to Tenant as is
reasonably possible. Landlord shall at all times retain a key with which to unlock all of the
doors in the Premises. If an emergency necessitates immediate access to the Premises, Landlord may
use whatever force is necessary to enter the Premises, and any such entry to the Premises shall not
constitute a forcible or unlawful entry to the Premises, a detainer of the Premises, or an eviction
of Tenant from the Premises or any portion thereof.

36. Quiet Enjoyment. So long as Tenant is not in default under this Lease, Landlord
or anyone acting through or under Landlord shall not disturb Tenant’s occupancy of the Premises,
except as permitted by this Lease.

37. Subordination and Attornment.

37.1 This Lease shall be subject and subordinate to the lien of any mortgage, deed of trust,
or lease in which Landlord is tenant now or hereafter in force against the Building or the Project
and to all advances made or hereafter to be made upon the security thereof without the necessity of
the execution and delivery of any further instruments on the part of Tenant to effectuate such
subordination.

37.2 Notwithstanding the foregoing, Tenant shall promptly execute and deliver upon demand such
further instrument or instruments evidencing such subordination of this Lease to the lien of any
such mortgage or mortgages or deeds of trust or lease in which Landlord is tenant as may be
reasonably required by Landlord. However, if any such mortgagee, beneficiary or Landlord under
lease wherein Landlord is tenant so elects, this Lease shall be deemed prior in lien to any such
lease, mortgage, or deed of trust upon or including the Premises regardless of date and Tenant
shall execute a statement in writing to such effect at Landlord’s request. If Tenant fails to
execute any document required from Tenant under this Section within ten (10) days after written
request therefor, Tenant hereby constitutes and appoints Landlord or its special attorney-in-fact
to execute and deliver any such document or documents in the name of Tenant. Such power is coupled
with an interest and is irrevocable, provided that execution and delivery
of such document or documents would not have a material adverse effect on Tenant’s operations
at the Premises..

 

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37.3 Upon written request of Landlord and opportunity for Tenant to review, Tenant agrees to
execute any Lease amendments not materially altering the terms of this Lease, if required by a
mortgagee or beneficiary of a deed of trust encumbering real property of which the Premises
constitute a part incident to the financing of the real property of which the Premises constitute a
part. Landlord shall reimburse Tenant for Tenant’s reasonable attorneys’ fees incurred therewith,
not to exceed One Thousand Five Hundred Dollars ($1,500). Any change affecting the amount or
timing of the consideration to be paid by Tenant or modifying the term of this Lease shall be
deemed as materially altering the terms hereof.

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

38. Surrender.

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

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

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

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

40. Waiver of Jury Trial and Counterclaims. The parties waive trial by jury in any
action, proceeding or counterclaim brought by the other party hereto related to matters arising out
of or in any way connected with this Lease; the relationship between Landlord and Tenant; Tenant’s
use or occupancy of the Premises, the Building or the Project; or any claim of injury or damage
related to this Lease or the Premises, the Building or the Project.

41. [Intentionally Omitted].

42. Hazardous Materials.

42.1 Tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be
brought upon, kept or used in or about the Premises, the Building or the Project in violation of
Applicable Laws by Tenant, its agents, employees, contractors or invitees. If Tenant breaches such
obligation, or if the presence of Hazardous Materials as a result of such a breach results in
contamination of the Premises, the Building, the Project or any adjacent property, or if
contamination of (a) the Building, the Project or any adjacent property by Tenant or its agent,
employees or invitees or (b) the Premises otherwise occurs during the term of this Lease or any
extension or renewal hereof or holding over hereunder, then Tenant shall indemnify, save, defend
and hold Landlord, its agents and contractors harmless from and against any and all claims,
judgments, damages penalties, fines, costs, liabilities and losses (including, without limitation,
diminution in value of the Premises, the Building, the Project or any portion thereof; damages for
the loss or restriction on use of rentable or usable space or of any amenity of the Premises or
Project; damages arising from any adverse impact on marketing of space in the Premises, the
Building or the Project; and sums paid in settlement of claims, attorneys’ fees,
consultants’ fees and experts’ fees) that arise during or after the Term as a result of such
breach or contamination. This indemnification of Landlord by Tenant includes, without limitation,
costs incurred in connection with any investigation of site conditions or any cleanup, remedial,
removal or restoration work required by any Governmental Authority because of Hazardous Materials
present in the air, soil or groundwater above, on or under the Premises. Without limiting the
foregoing, if the presence of any Hazardous Materials in, on, under or about the Premises, the
Building, the Project or any adjacent property caused or permitted by Tenant results in any
contamination of the Premises, the Building, the Project or any adjacent property, then Tenant
shall promptly take all actions at its sole cost and expense as are necessary to return the
Premises, the Building, the Project and any adjacent property to their respective condition
existing prior to the time of such contamination; provided that Landlord’s written approval
of such action shall first be obtained, which approval Landlord shall not unreasonably withhold;
and provided, further, that it shall be reasonable for Landlord to withhold its consent if
such actions could have a material adverse long-term or short-term effect on the Premises, the
Building or the Project.

 

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42.2 Landlord acknowledges that it is not the intent of this Article 42 to prohibit
Tenant from operating its business as described in Section 2.10 above. Tenant may operate
its business according to the custom of Tenant’s industry so long as the use or presence of
Hazardous Materials is strictly and properly monitored according to Applicable Laws.

42.3 Notwithstanding the provisions of Section 42.1 above, if (a) Tenant or any
proposed transferee, assignee or sublessee of Tenant has been required by any prior landlord,
Lender or Governmental Authority to take remedial action in connection with Hazardous Materials
contaminating a property if the contamination resulted from such party’s action or omission or use
of the property in question or (ii) Tenant or any proposed transferee, assignee or sublessee is
subject to an enforcement order issued by any Governmental Authority in connection with the use,
disposal or storage of Hazardous Materials, then Landlord shall have the right to terminate this
Lease in Landlord’s sole and absolute discretion (with respect to any such matter involving
Tenant), and it shall not be unreasonable for Landlord to withhold its consent to any proposed
transfer, assignment or subletting (with respect to any such matter involving a proposed
transferee, assignee or sublessee).

42.4 At any time, and from time to time, prior to the expiration of the Term, Landlord shall
have the right to conduct appropriate tests of the Premises, the Building and the Project to
demonstrate that Hazardous Materials are present or that contamination has occurred due to Tenant
or Tenant’s agents, employees or invitees, if Landlord reasonably suspects that Hazardous Materials
are present or that such contamination has occurred. If Landlord reasonably determines that
Hazardous Materials are present or that contamination has occurred, Tenant shall pay all
reasonable costs of such tests of the Premises.

42.5 If underground or other storage tanks storing Hazardous Materials are located on the
Premises or are hereafter placed on the Premises by any party, Tenant shall monitor the storage
tanks, maintain appropriate records, implement reporting procedures, properly close any underground
storage tanks, and take or cause to be taken all other steps necessary or required under the
Applicable Laws.

42.6 Tenant’s obligations under this Article 40 shall survive the expiration or
earlier termination of the Lease. During any period of time needed by Tenant or Landlord after the
termination of this Lease to complete the removal from the Premises of any such Hazardous
Materials, Tenant shall continue to pay Rent in accordance with this Lease, which Rent shall be
prorated daily.

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

43. Right of First Offer. Tenant shall have a right of first offer (“ROFO”) as to
the approximately 3,441 square feet described on Exhibit F attached hereto (the “Option
Premises”). In the event Landlord intends to lease Option Premises, Landlord shall provide
written notice thereof to Tenant (the “Notice of Offer”).

43.1 Within ten (10) days following its receipt of the Notice of Offer, Tenant shall advise
Landlord in writing whether Tenant elects to lease the Option Premises (the “Reply”). If
Tenant fails to notify Landlord of Tenant’s election within said ten (10) day period, then
Tenant shall be deemed to have elected not to lease the Option Premises. In such a case, or if
Tenant notifies Landlord that it will not lease the Option Premises, the ROFO shall expire and
Landlord may lease the Option Premises to another tenant.

 

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43.2 If Tenant timely notifies Landlord that Tenant elects to lease the Option Premises, then
Landlord and Tenant shall promptly enter into an amendment to this Lease to add the Option
Premises, with the term of the Option Premises commencing no later than six (6) months after the
date of the Notice of Offer. Rent for the Option Premises shall be at the rates specified in this
Lease for the Premises (with the appropriate adjustment for Tenant’s Pro Rata Share), and Tenant
shall accept the Option Premises in their then-current, “as is” condition..

43.3 [Intentionally omitted]

43.4 Notwithstanding anything in this Section 43 to the contrary, Tenant shall not
exercise the ROFO during any period of time that Tenant has committed a default under this Lease
that, in the absence of any cure periods, would constitute a Default. Any attempted exercise of
the ROFO during such a period of time shall be void and of no effect. In addition, Tenant shall
not be entitled to exercise the ROFO if Landlord has given Tenant two (2) or more notices of
default by Tenant that, in the absence of any cure periods, would constitute a Default, whether or
not the defaults are cured, during the twelve (12) month period prior to the date on which Tenant
seeks to exercise the ROFO.

43.5 Notwithstanding anything in this Lease to the contrary, Tenant shall not assign or
transfer the ROFO, either separately or in conjunction with an assignment or transfer of Tenant’s
interest in the Lease, without Landlord’s prior written consent, which consent Landlord may
withhold in its sole and absolute discretion.

44. End of Term.

44.1 The Premises shall at all times remain the property of Landlord and shall be surrendered
to Landlord upon the expiration or earlier termination of this Lease. All trade fixtures,
equipment, Tenant Improvements, Alterations and Signage installed by or under Tenant shall be the
property of Landlord.

45. Miscellaneous.

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

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

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

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

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

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

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

 

31

 

45.8 Neither party shall record this Lease. Tenant shall be responsible for the cost of
recording any memorandum of this Lease, including any transfer or other taxes incurred in
connection with said recordation.

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

45.10 Each of the covenants, conditions and agreements herein contained shall inure to the
benefit of and shall apply to and be binding upon the parties hereto and their respective heirs;
legatees; devisees; executors; administrators; and permitted successors, assigns, sublessees.
Nothing in this Section 45.10 shall in any way alter the provisions of this Lease
restricting assignment or subletting.

45.11 Any notice, consent, demand, bill, statement or other communication required or
permitted to be given hereunder shall be in writing and shall be given by personal delivery,
overnight delivery with a reputable nationwide overnight delivery service, or certified mail
(return receipt requested), and if given by personal delivery, shall be deemed delivered upon
receipt; if given by overnight delivery, shall be deemed delivered one (1) day after deposit with a
reputable nationwide overnight delivery service; and, if given by certified mail (return receipt
requested), shall be deemed delivered three (3) business days after the time the notifying party
deposits the notice with the United States Postal Service. Any notices given pursuant to this
Lease shall be addressed to Tenant at the Premises, or to Landlord or Tenant at the addresses shown
in Sections 2.11 and 2.12, respectively. Either party may, by notice to the other
given pursuant to this Section, specify additional or different addresses for notice purposes.

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

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

45.14 To induce Landlord to enter into this Lease, Tenant agrees that it shall promptly
furnish to Landlord, from time to time, upon Landlord’s written request, the most recent year-end
financial statements (provided that Tenant shall provide audited statements, if available)
reflecting Tenant’s current financial condition. Tenant represents and warrants that all financial
statements, records and information furnished by Tenant to Landlord in connection with this Lease
are true, correct and complete in all respects.

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

45.16 [Intentionally omitted]

45.17 This Lease is subject to any recorded covenants, conditions or restrictions on the
Project or Property (the “CC&Rs”). Tenant shall comply with the CC&Rs.

46. Options to Extend Term. Tenant shall have two (2) consecutive options (each, an
“Option”) to extend the Term of this Lease (and, upon the exercise of any Option, the Term
Expiration Date), for an additional five (5) years, as to the entire Premises (and no less than the
entire Premises) upon the following terms and conditions:

 

32

 

46.1 Any extension of the Term pursuant to any Option shall be on all the same terms and
conditions as this Lease, except as follows. Basic Annual Rent shall be adjusted on the first
(1st) day of each renewal term and each one (1)-year anniversary date thereafter in
accordance with Article 8. The Basic Annual Rent during the first year of each renewal
term shall equal the greater of: (a) Fair Market Value for the renewal term and (b) one hundred
three percent (103%) of the then-current Basic Annual Rent at the end of the then-current Term.
Basic Annual Rent shall be subject to annual escalation as provided in Article 8 beginning
on the first (1st) annual anniversary of the commencement date of the respective Option period. “Fair Market Value” means the then-prevailing average annual rate being charged
for comparable space in comparable buildings comparably located, taking into consideration all relevant factors,
including, without limitation, location in the Project, the proposed lease term, the physical
condition of the Premises (i.e., the existence of all the Tenant Improvements and the assumption
that such Tenant Improvements are fully suitable and appropriate for the contemplated tenancy in
their “as is” condition), the extent of the services provided or to be provided to the Premises,
the status as a lease (as opposed to a sublease), contraction and expansion options, and the cost
of operating expenses, utilities and other charges imposed by Landlord. If Landlord and Tenant
cannot agree on the Fair Market Value for purposes of any renewal term then they shall engage a
mutually agreeable independent third party appraiser with at least ten (10) years’ experience in
appraising the rental value of leased commercial premises (for office use) in the New York
metropolitan area (the “Appraiser”). If the parties cannot agree on the Appraiser, each
shall within fifteen (15) days after such impasse appoint an Appraiser and, within fifteen (15)
days after the appointment of both such Appraisers, those two Appraisers shall select a third. If
either party fails to timely appoint an Appraiser, then the Appraiser the other party appoints
shall be the sole Appraiser. Within fifteen (15) days after appointment of all Appraiser(s),
Landlord and Tenant shall each simultaneously give the Appraisers (with a copy to the other party)
its determination of Fair Market Value, with such supporting data or information as each submitting
party determines appropriate. Within ten (10) days after such submissions, the Appraisers shall by
majority vote select either Landlord’s or Tenant’s Fair Market Value. The Appraisers may not
select or designate any other Fair Market Value. The determination of the Appraiser(s) shall bind
the parties.

46.2 The Options are not assignable separate and apart from this Lease.

46.3 The Options are conditional upon Tenant giving Landlord written notice of its election to
exercise an Option at least three (3) months prior to the end of the expiration of the initial term
of this Lease (or the applicable extension of such Term). TIME SHALL BE OF THE ESSENCE AS TO
TENANT’S EXERCISE OF EACH OPTION. Tenant assumes full responsibility for maintaining a record of
the deadlines to exercise either Option. Tenant acknowledges that it would be inequitable to
require Landlord to accept any exercise of any Option after the date provided for in this
paragraph.

46.4 Notwithstanding anything contained in this Article 46, Tenant shall not have the
right to exercise an Option:

(a) During the time commencing from the date Landlord delivers to Tenant a written notice that
Tenant is in default under any provisions of this Lease and continuing until Tenant has cured the
specified default to Landlord’s reasonable satisfaction; or

(b) At any time after any Default as described in Article 27 of the Lease (provided,
however, that, for purposes of this Subsection 46.4(b), Landlord shall not be required to
provide Tenant with notice of such Default) and continuing until Tenant cures any such Default, if
such Default is susceptible to being cured; or

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

46.5 The period of time within which Tenant may exercise an Option shall not be extended or
enlarged by reason of Tenant’s inability to exercise the Option because of the provisions of
Section 46.4.

46.6 All of Tenant’s rights under the provisions of the Options shall terminate and be of no
further force or effect even after Tenant’s due and timely exercise of an Option if, after such
exercise, but prior to the Term Commencement Date of the new term, (a) Tenant fails to pay to
Landlord a monetary obligation of Tenant for a period of twenty (20) days after written notice from
Landlord to Tenant, (b) Tenant fails to commence to cure a default (other than a monetary default)
within thirty (30) days after the date Landlord gives notice to Tenant of such default or (c)
Tenant has defaulted under this Lease three (3) or more times and a service or late charge under
Section 27.1 has become payable for any such default, whether or not Tenant has cured such
defaults.

 

33

 

47. [Intentionally omitted]

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

49. Confidentiality. Tenant shall not disclose any terms or conditions of this Lease
(including Rent), or give a copy of this Lease to any third party, and Landlord shall not release
to any third party any nonpublic financial information or nonpublic information about Tenant’s
ownership structure that Tenant gives Landlord, except: (a) if required by Law or in any judicial
proceeding, provided that the releasing party has given the other party reasonable notice of such
requirement, if feasible; (b) to a party’s attorneys, accountants, brokers, and other bona fide
consultants or advisers, provided they agree to be bound by this paragraph; or (c) to bona fide
prospective assignees or subtenants of this Lease, provided they agree in writing to be bound by
this paragraph.

50. Odors and Exhaust. Tenant acknowledges that Landlord would not enter into this
Lease with Tenant unless Tenant assured Landlord that under no circumstances will any other
occupants of the Building or Project (including persons legally present in any outdoor areas of the
Project) be subjected to odors or fumes (whether or not noxious), and the Building and Project will
not be damaged by any exhaust, from Tenant’s operations. Landlord and Tenant therefore agree as
follows:

50.1 Tenant shall not cause or permit (or conduct any activities that would cause) any release
of any odors or fumes of any kind from the Premises.

50.2 If the Building has a ventilation system that in Landlord’s judgment is adequate,
suitable, and appropriate to vent the Premises in a manner that does not release odors affecting
any indoor or outdoor part of the Project, Tenant shall vent the Premises through such system. If
Landlord at any time determines that any existing ventilation system is inadequate, or if no
ventilation system exists, Tenant shall in compliance with Applicable Law vent all fumes and odors
from the Premises (and remove odors from Tenant’s exhaust stream) as Landlord requires. The
placement and configuration of all ventilation exhaust pipes, louvers, and other equipment shall be
subject to Landlord’s approval. Tenant acknowledges Landlord’s legitimate desire to maintain the
Project (indoor and outdoor areas) in an odor-free manner, and Landlord may require Tenant to abate
and remove all odors in a manner that goes beyond the requirements of Applicable Laws.

50.3 Tenant shall, at Tenant’s sole cost and expense, provide odor eliminators and other
devices (such as filters, air cleaners, scrubbers, and whatever other equipment may in Landlord’s
judgment be necessary or appropriate from time to time) to completely remove, eliminate, and abate
any odors, fumes, or other substances in Tenant’s exhaust stream that, in Landlord’s judgment,
emanate from Tenant’s Premises. Any work Tenant performs under this paragraph shall constitute
Alterations.

50.4 Tenant’s responsibility to remove, eliminate, and abate odors, fumes, and exhaust shall
continue throughout the Term. Landlord’s approval of the Tenant Improvements shall not preclude
Landlord from requiring additional measures to eliminate odors, fumes, and other adverse impacts of
Tenant’s exhaust stream (as Landlord may designate in Landlord’s discretion). Tenant shall install
additional equipment as Landlord requires from time to time under the preceding sentence. Such
installations shall constitute Alterations.

50.5 If Tenant fails to install satisfactory odor control equipment within ten (10) business
days after Landlord’s demand made at any time, then Landlord may, without limiting Landlord’s other
rights and remedies, require Tenant to cease and suspend any operations in the Premises that, in
Landlord’s determination, cause odors, fumes, or exhaust. For example, if Landlord determines that
Tenant’s production of a certain type of product causes odors, fumes, or exhausts and Tenant does
not install satisfactory odor control equipment within ten (10)
business days after Landlord’s request, then Landlord may require Tenant to stop producing
such type of product in the Premises unless and until Tenant has installed odor control equipment
satisfactory to Landlord.

 

34

 

51. HVAC. For the Premises, Landlord shall (a) maintain and operate the heating,
ventilating and air conditioning systems (“HVAC”) and (b) furnish HVAC as reasonably
required (except as this Lease otherwise provides or as to any special requirements that arise from
Tenant’s particular use of the Premises) for reasonably comfortable occupancy of the Premises
twenty-four (24) hours a day, 365 or 366 days a year, provided Tenant complies with the
next sentence. If Tenant will require HVAC outside the Business Hours of business days (as
reasonably designated by Landlord) in the Premises (“Overtime HVAC”), Landlord shall be
obligated to provide Overtime HVAC only if Tenant requests it by 4 p.m. on the immediately
preceding business day. Tenant shall pay Landlord, as Additional Rent, one hundred percent (100%)
of Landlord’s actual total cost of delivering steam and chilled water for (y) the Premises for
Overtime HVAC and (z) the computer server room. That actual total cost shall be determined based
upon Landlord’s established mathematical model set forth in Exhibit I. Notwithstanding
anything to the contrary in this paragraph, Landlord shall have no liability, and Tenant shall have
no right or remedy, on account of any interruption or impairment in HVAC services, provided
that Landlord diligently endeavors to cure any such interruption or impairment.

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

53. [Intentionally omitted]

54. Names. Landlord reserves the right to change the name of the Project or the
Building in its sole discretion.

55. Landmark Rider. The attached Landmark Rider (the “Rider”) is incorporated
by reference in and is a part of the foregoing Lease. Notwithstanding anything to the contrary in
the foregoing Lease, the provisions of the Rider shall govern the foregoing Lease and supersede all
inconsistent provisions in such Lease.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

35

 

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

LANDLORD:

BMR-LANDMARK AT EASTVIEW LLC,

a Delaware limited liability company

	 	 	 	 	 
	By:

	 	 
	 	 
	 	 	 	 	 
	Name:

	 	 	 	 
	 	 	 	 	 
	Title:

	 	 	 	 
	 	 	 	 	 

TENANT:

EPICEPT CORPORATION,

a Delaware corporation

	 	 	 	 	 
	By:

	 	 
	 	 
	 	 	 	 	 
	Name:

	 	 	 	 
	 	 	 	 	 
	Title:

	 	 	 	 
	 	 	 	 	 

 

36

 

LANDMARK RIDER

The following provisions constitute the Landmark Rider, as referred to in the foregoing Lease.

56. Conditional Limitation. In addition to Landlord’s other rights and remedies under
this Lease, if any Default occurs, then Landlord may serve upon Tenant a five-day notice of
cancellation and termination of this Lease. Upon the expiration of such five-day period, this
Lease and the Term shall automatically and without any action by anyone terminate, expire, and come
to an end, by the mere lapse of time and by the express terms of this Lease, as fully and
completely as if the expiration of such five-day period were the Term Expiration Date. The passage
of such five-day period constitutes the limit beyond which Tenant’s tenancy no longer exists, and
no longer can exist. Upon the mere occurrence of the passage of five days after Landlord’s notice
of cancellation and termination, this Lease shall automatically expire by its express terms. No
re-entry or other act shall be necessary to terminate this Lease. This paragraph establishes a
conditional limitation and not a condition subsequent, but does not limit Landlord’s other rights
or remedies under this Lease or applicable law.

57. Delivery of Premises. Tenant waives the provisions of New York Real Property Law
(the “RPL”) § 223-a. The provisions of this Lease on Landlord’s delivery of the Premises
constitute “an express provision to the contrary” under RPL § 223-a.

58. Casualty. The provisions of this Lease on casualty are an express agreement as to
damage or destruction of the Premises by fire or other casualty. RPL § 227, providing for such a
contingency absent an express agreement, shall not apply.

59. Window Cleaning. Tenant shall not clean, nor require, permit, suffer or allow any
window in the Premises to be cleaned, from the outside in violation of Labor Law § 202, or any
other Law, including the rules of the Board of Standards and Appeals.

60. Statutory Right of Redemption. Tenant specifically waives the right of redemption
provided for in Real Property Actions and Proceedings Law (“RPAPL”) § 761.

61. Security. To the extent General Obligations Law (“GOL”) § 7-103 requires:
(a) Landlord shall deposit any cash Security Deposit in an account maintained with a banking
organization within New York State, which account shall earn interest at the prevailing rate earned
by other such deposits made with banking organizations in the municipality where the Project is
located; (b) Landlord shall notify Tenant of the name and address of the banking organization in
which Landlord deposits the Security Deposit; (c) Landlord may receive, as administration expenses,
a sum equivalent to 1% per annum upon the Security Deposit, in lieu of all other administrative and
custodial expenses (provided that, in the event that the Security Deposit accrues less than
one (1%) interest during any year (before taking into account Landlord’s administrative fee),
Landlord’s administrative fee under this paragraph for such year shall be equal to the amount of
such interest); and (d) the balance of the interest paid by the banking organization shall be the
money of Tenant and shall be held in trust by Landlord until repaid, applied to pay Rent, or
annually paid to Tenant.

62. Acceptance of Rent. If Landlord accepts any payment from Tenant after the Term
expires, then Landlord shall credit such payment against any damages that Tenant may become
obligated to pay Landlord. By accepting any such payment, Landlord shall not be deemed to have
agreed to continue Tenant’s tenancy or to accept Tenant as a month-to-month tenant of the Premises
or as a tenant on any other basis. This paragraph constitutes “an agreement . . . providing
otherwise” within the meaning of RPL § 232-c.

63. Consumer Contract Statutes. Tenant acknowledges that this Lease is not entered
into for personal, family or household purposes, and therefore GOL § 5-327 (and any other law whose
effect is limited to transactions entered into for personal, family, or household purposes) has no
application to this Lease.

64. Waiver of Stay. Tenant expressly waives, for every tenant party, any rights under
Civil Practice Law and Rules § 2201, in connection with any holdover proceeding or other action or
proceeding about this Lease or Tenant’s rights as a tenant of the Building.

 

37

 

65. No Implied Consent to Remaining in Possession. Notwithstanding anything to the
contrary in RPAPL § 711(2) or any other Applicable Law or rule of procedure, Landlord’s acceptance
of any partial payment on account of Rent, even if acknowledged in writing, shall not be deemed to
constitute Landlord’s “express consent in writing to permit the tenant to continue in possession”
as referred to in RPAPL § 711(2). Landlord shall not be deemed to have granted such “express
consent in writing to permit the tenant to continue in possession” unless such alleged written
consent by Landlord expressly refers to RPAPL § 711(2) and expressly states (i.e., contains
substantially the following words): “Landlord consents to Tenant’s remaining in possession
notwithstanding nonpayment of Rent.”

 

38

 

EXHIBIT A

PREMISES

 

A-1

 

EXHIBIT B

ACKNOWLEDGEMENT OF TERM COMMENCEMENT DATE

AND TERM EXPIRATION DATE

THIS ACKNOWLEDGEMENT OF TERM COMMENCEMENT DATE AND TERM EXPIRATION DATE is entered into as of
[                    ], 20[     ], with reference to that certain Lease (the “Lease”) dated as of August
28, 2006, by EPICEPT CORPORATION, a Delaware corporation (“Tenant”), in favor of
BMR-LANDMARK AT EASTVIEW LLC, a Delaware limited liability company (“Landlord”). All
capitalized terms used herein without definition shall have the meanings ascribed to them in the
Lease.

Tenant hereby confirms the following:

1. Tenant accepted possession of the Premises on [                    ], 20[     ].

2. The Premises are in good order, condition and repair.

3. The Tenant Improvements required to be constructed by Landlord under the Lease have been
substantially completed.

4. All conditions of the Lease to be performed by Landlord as a condition to the full
effectiveness of the Lease have been satisfied, and Landlord has fulfilled all of its duties in the
nature of inducements offered to Tenant to lease the Premises.

5. In accordance with the provisions of Section 4.2 of the Lease, the “Term
Commencement Date” is [                    ], 20[     ], and, unless the Lease is terminated prior to the Term
Expiration Date pursuant to its terms, the “Term Expiration Date” shall be [                    ],
20[     ].

6. Tenant commenced occupancy of the Premises for the Permitted Use on [                    ], 20[     ].

7. The Lease is in full force and effect, and the same represents the entire agreement between
Landlord and Tenant concerning the Premises[, except [                    ]].

8. Tenant has no existing defenses against the enforcement of the Lease by Landlord, and there
exist no offsets or credits against Rent owed or to be owed by Tenant.

9. The obligation to pay Rent is presently in effect and all Rent obligations on the part of
Tenant under the Lease commenced to accrue on [                    ], 20[     ].

10. The undersigned Tenant has not made any prior assignment, transfer, hypothecation or
pledge of the Lease or of the rents thereunder or sublease of the Premises or any portion thereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

B-1

 

IN WITNESS WHEREOF, the parties hereto have executed this Acknowledgment of Term Commencement
Date and Term Expiration Date as of [                    ], 20[     ].

TENANT:

EPICEPT CORPORATION,

a [                    ] corporation

	 	 	 	 	 
	By:

	 	 
	 	 
	 	 	 	 	 
	Name:

	 	 	 	 
	 	 	 	 	 
	Title:

	 	 	 	 
	 	 	 	 	 

 

B-2

 

EXHIBIT C

TENANT’S PERSONAL PROPERTY

 

C-1

 

EXHIBIT D

RULES AND REGULATIONS

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

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

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

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

4. No deliveries shall be made that impede or interfere with other tenants in or the operation
of the Project.

5. Tenant shall not place a load upon any floor of the Premises that exceeds the load per
square foot that (a) such floor was designed to carry or (b) that is allowed by Applicable Laws.
Fixtures and equipment that cause noises or vibrations that may be transmitted to the structure of
the Building to such a degree as to be objectionable to other tenants shall be placed and
maintained by Tenant, at Tenant’s sole cost and expense, on vibration eliminators or other devices
sufficient to eliminate such noises and vibrations to levels reasonably acceptable to Landlord and
other tenants of the Building.

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

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

8. Canvassing, peddling, soliciting and distributing handbills or any other written material
within, on or around the Project (other than within the Premises) are prohibited, and Tenant shall
cooperate to prevent such activities.

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

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

 

D-1

 

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

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

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

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

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

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

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

 

D-2

 

EXHIBIT E

FORM OF ESTOPPEL CERTIFICATE

	 	 	 
	To:

	 	BMR-LANDMARK AT EASTVIEW LLC

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128

Attention: General Counsel/Real Estate
	 

	 	 
	 

	 	BioMed Realty, L.P.

c/o BioMed Realty Trust, Inc.

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128
	 

	 	 
	Re:

	 	Suite [     ] (the “Premises”) at 777 Old Saw Mill River Road in Tarrytown, New York (the “Property”)

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

1. Tenant is a tenant at the Property under a lease (the “Lease”) for the Premises
dated as of [                    ], 2006. The Lease has not been cancelled, modified, assigned, extended or
amended [except as follows: [                    ]], and there are no other agreements, written or oral,
affecting or relating to Tenant’s lease of the Premises or any other space at the Property. The
lease term expires on [                    ], 20[     ].

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

3. All base rent, rent escalations and additional rent under the Lease have been paid through
[                    ], 20[     ]. There is no prepaid rent[, except $[                    ]][, and the amount of security
deposit is $[                    ] [in cash][in the form of a letter of credit]]. Tenant currently has no right
to any future rent abatement under the Lease (except with respect to the period prior to the Rent
Commencement Date (as defined in the Lease) and only to the extent provided for in the Lease).

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

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

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

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

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

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

 

E-1

 

10. The undersigned has executed this Estoppel Certificate with the knowledge and
understanding that [INSERT NAME OF LANDLORD, PURCHASER OR LENDER, AS APPROPRIATE] or its assignee
is acquiring the Property in reliance on this certificate and that
the undersigned shall be bound by this certificate. The statements contained herein may be
relied upon by [INSERT NAME OF PURCHASER OR LENDER, AS APPROPRIATE], BMR-Landmark at Eastview LLC,
BioMed Realty, L.P., BioMed Realty Trust, Inc., and any mortgagee of the Property and their
respective successors and assigns.

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

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

	 	 	 	 	 
	 	 	[                    ],
	 	 	a [                    ]
	 
	 	 	 	 
	 

	 	By:
	 	 
	 	 	 	 	 
	 

	 	Name:
	 	 
	 	 	 	 	 
	 

	 	Title:
	 	 
	 	 	 	 	 

 

E-2

 

EXHIBIT F

OPTION PREMISES

 

F-1

 

EXHIBIT G

WORK LETTER

This Landlord’s Work Letter (the “Work Letter”) is made and entered into as of the
28th day of August, 2006, by and between BMR-LANDMARK AT EASTVIEW LLC, a Delaware
limited liability company (“Landlord”), and EPICEPT CORPORATION, a Delaware corporation
(“Tenant”), and is attached to and made a part of that certain Lease dated as of August 28,
2006 (the “Lease”), by and between Landlord and Tenant for the Premises located at 777 Old
Saw Mill River Road in Tarrytown, New York. All capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Lease.

1. General Requirements.

1.1. Tenant’s Authorized Representative. Tenant designates Silvia Malave
(“Tenant’s Authorized Representative”) as the person authorized to initial all plans,
drawings, changes orders and approvals pursuant to this Work Letter. Landlord shall not be
obligated to respond to or act upon any such item until such item has been initialed by Tenant’s
Authorized Representative. Neither Tenant nor Tenant’s Authorized Representative shall be
authorized to direct Landlord’s contractors in the performance of Landlord’s Work (as defined
below).

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

1.3. Architects and Consultants. The architect, engineering consultants, design team,
general contractor and subcontractors responsible for the construction of Landlord’s Work shall be
selected by Landlord and approved by Tenant. Tenant’s approval of the same shall not be
unreasonably withheld. Tenant hereby approves of MSC Group as Landlord’s architect and Landlord
acting as its own general contractor.

2. Landlord’s Work.

2.1. Landlord’s Work Plans. All Tenant Improvements shall be performed by Landlord
(“Landlord’s Work”) at Landlord’s sole cost and expense (except for Tenant’s Portion) and
in accordance with the Approved Plans (as defined below). The quality of Landlord’s Work shall be
of a nature and character not less than (a) the quality of the tenant improvements in place at the
Building and the Project as of the date of the Lease and (b) the Building Standard. The design
drawings, plans and specifications listed on Schedule 2.1 to this Work Letter (the
“Landlord’s Work Plans”) are the initial list of plans that Landlord shall develop and
submit to Tenant for approval. Landlord shall prepare and submit to Tenant for approval schematics
covering Landlord’s Work prepared in conformity with the applicable provisions of this Work Letter
(the “Draft Plans”). The Draft Plans shall contain sufficient information and detail to
accurately describe Landlord’s proposed design to Tenant and such other information as Tenant may
reasonably request. Tenant shall be solely responsible for ensuring that the Landlord’s Work Plans
and the Draft Plans satisfy Tenant’s requirements for the Tenant Improvements.

2.2. Tenant Approval of Plans. Tenant shall notify Landlord in writing within five
(5) business days after receipt of the Draft Plans whether Tenant approves or objects to the Draft
Plans and of the manner, if any, in which the Draft Plans are unacceptable. Tenant shall not
object to any Draft Plans that satisfy the requirements set forth in Section 2.1. If
Tenant properly objects to the Draft Plans, then Landlord shall revise the Draft Plans and cause
Tenant’s objections to be remedied in the revised Draft Plans. Landlord shall then resubmit the
revised Draft Plans to Tenant for approval. Tenant’s approval of or objection to the revised Draft
Plans and Landlord’s correction of the same shall be in accordance with this Section 2.2,
until Tenant has approved the Draft Plans in writing. The iteration of the Draft Plans that is
approved by Tenant without objection shall be referred to herein as the “Approved Plans.”

 

G-1

 

2.3. Completion of Landlord’s Work. Landlord shall perform and complete Landlord’s
Work (a) in strict conformance with the Approved Plans, except for Minor Variations
(as defined below), (b) otherwise in compliance with the Lease and (c) in accordance with
Applicable Laws, Landlord’s insurance carriers and the board of fire underwriters having
jurisdiction over the Project and the Premises.

2.4. Conditions to Performance of Landlord’s Work. Prior to the commencement of
Landlord’s Work, Landlord shall submit to Tenant for Tenant’s approval (which approval Tenant shall
not unreasonably withhold) a list (the “Contractor List”) of project managers, contractors
and subcontractors that will perform Landlord’s Work. Tenant shall give Landlord notice in writing
of its approval or disapproval of the Contractor List with five (5) business days after Tenant’s
receipt of the same. If Tenant properly disapproves of one or more parties on the Contractor List,
Landlord shall revise the Contractor List and resubmit the same to Tenant for Tenant’s approval in
accordance with the preceding two sentences.

2.5. Requests for Consent. Tenant shall respond to all requests for consents,
approvals or directions made by Landlord pursuant to this Work Letter within five (5) business days
following Tenant’s receipt of such request. Tenant’s failure to respond within such five (5)
business day period shall be deemed approval by Tenant.

3. Each Party’s Obligations. Each of Landlord and Tenant shall perform promptly such of
its obligations contained in this Work Letter as are to be performed by it. Tenant shall also
observe and perform all of its obligations under this Lease from the Term Commencement Date. The
parties acknowledge that the Approved Budget, the Approved Plans and the Contractor’s List must be
completed and approved not later than September 15, 2006, in order for the Tenant Improvements to
be Substantially Complete by November 27, 2006.

4. Completion of Landlord’s Construction Obligations. The date on which Landlord’s Work is
Substantially Complete shall be referred to as the “TI Substantial Completion Date.”
Tenant shall accept the Premises in the condition in which they exist as of the TI Substantial
Completion Date. Tenant’s taking possession and acceptance of the Premises shall not constitute a
waiver of any warranty of any construction defect in regard to workmanship (including installation
of equipment) or materials (exclusive of equipment provided by manufacturers) of the Premises
completed by or on behalf of Landlord, any noncompliance of Landlord’s Work with Applicable Laws,
or the failure of Landlord’s Work to be completed substantially in accordance with the Approved
Plans (subject to Minor Variations and such other Changes as are permitted hereunder). Tenant
shall have until six (6) months after the TI Substantial Completion Date within which to notify
Landlord of any such construction defect or non-compliance with Approved Plans discovered by
Tenant, and Landlord shall use reasonable efforts to cause the applicable contractor to remedy any
such construction defect or non-compliance within thirty (30) days thereafter. Notwithstanding the
foregoing, Landlord shall not be in default under the Lease if (a) by the nature of such defect or
noncompliance, more than thirty (30) days are required to correct and remedy such construction
defect or noncompliance and Landlord commences its remedial action within such thirty (30) day
period and thereafter diligently and continuously prosecutes such curative and remedial action to
completion or (b) the applicable contractor, despite Landlord’s efforts, fails to remedy such
defect or non-compliance within such thirty (30) day period, but Landlord otherwise, at Landlord’s
expense with respect to any such construction defect or noncompliance with Approved Plans,
thereafter commences remedial action diligently and continuously prosecutes such curative and
remedial action to completion. Tenant shall be entitled to receive the benefit of all construction
warranties and manufacturer’s equipment warranties relating to equipment installed in the Premises.
If requested by Tenant, Landlord shall attempt to obtain extended warranties from manufacturers
and suppliers of such equipment, but the cost of any such extended warranties shall be borne solely
by Tenant. Landlord shall diligently pursue any claims arising out of latent defects in the
Landlord’s Work. Landlord shall promptly undertake and complete, or cause to be completed, all
punch list items. Landlord shall be responsible for obtaining a certificate of occupancy for the
Premise Tenant after completion of Landlord’s Work.

5. Insurance. Prior to commencing Landlord’s Work, Landlord shall provide, or shall cause
Landlord’s contractors and subcontractors to provide, to Tenant, in addition to any insurance
required of Landlord pursuant to the Lease, the following types of insurance in the following
amounts, upon the following terms and conditions:

5.1. Builders’ All-Risk Insurance. At all times during the period beginning with
commencement of construction of Landlord’s Work and ending with final completion of
Landlord’s Work, Landlord shall maintain, or cause to be maintained, casualty insurance in
Builder’s All Risk Form, insuring Tenant and each of Landlord’s contractors, as their interests may
appear.

 

G-2

 

5.2. Workers’ Compensation. At all times during the period of construction of
Landlord’s Work, Landlord shall, or shall cause its contractors or subcontractors to, maintain
statutory Workers’ Compensation insurance as required by Applicable Laws.

6. Tenant Improvement Allowance.

6.1. Application of Tenant Improvement Allowance. All costs, expenses and fees
incurred by or on behalf of Landlord to any third-party arising from, out of, or in connection with
the Tenant Improvements (collectively, the “Costs”) shall first be deducted by Landlord
from the Tenant Improvement Allowance (except as provided in Sections 8.1(a) and 8.2. If
at any time Landlord reasonably determines that Tenant is liable for any Tenant’s Portion, then
Tenant shall deposit in an escrow account bearing interest in favor of Tenant, pursuant to escrow
instructions acceptable to Landlord, and as a condition precedent to Landlord’s obligation to
complete the Tenant Improvements, one hundred percent (100%) of the then-current Tenant’s Portion.
If Tenant fails to deposit, or is late in depositing, any sum due to Landlord under this Work
Letter, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of
Rent (including, but not limited to, the right to interest at the Default Rate and the right to
assess a late charge), and for purposes of any litigation instituted with regard to such amounts
the same will be considered Rent. Funds so deposited in escrow by Tenant shall be disbursed to pay
for Costs in excess of the Tenant Improvement Allowance following disbursement by Landlord of the
full amount of the Tenant Improvement Allowance, and any amount on deposit in escrow that is not
required to pay any such excess Costs following the final completion of the Landlord’s Work
(including all punch list items) shall be promptly returned to Tenant. Landlord shall contribute
the Tenant Improvement Allowance toward the costs and expenses incurred in connection with the
performance of Landlord’s Work in accordance with the terms and provisions of the Lease.

6.2. Approval of Budget for Landlord’s Work. Notwithstanding anything to the contrary
set forth elsewhere in this Work Letter or the Lease, Landlord shall not have any obligation to
commence construction of the Tenant Improvements or to advance any portion of the Tenant
Improvement Allowance until Tenant shall have approved in writing the budget for the Landlord’s
Work (the “Approved Budget”) and the Approved Plans. Landlord shall not be obligated to
pay for costs or expenses relating to Landlord’s Work that exceed either (a) the amount of the
Tenant Improvement Allowance (other than pursuant to Section 7.2) or (b) the Approved
Budget, either on a line item or overall basis, and all such costs and expenses shall be paid by
Tenant pursuant to Section 6.3.

6.3. Cost Statements. Each month Landlord shall prepare, approve and submit to Tenant
(a) a statement setting forth the total amount of Costs expended and the total amount applied
against the Tenant Improvement Allowance and the total amount funded from the escrow (if any)
described in Section 6.1, and (b) a detailed summary of the Landlord’s Work performed using
AIA standard form Application for Payment (G 702) executed by the general contractor and by the
architect).

6.4. Application of the Tenant Improvement Allowance. Landlord may apply the Tenant
Improvement Allowance for the payment of Costs of the Tenant Improvements within the Premises
(including, without limitation, construction of standard laboratory improvements; finishes;
building fixtures; building permits; and architectural, engineering, design and consulting fees),
in each case as reflected in the Approved Budget and the Approved Plans and for any Minor
Variations. In no event shall the Tenant Improvement Allowance be applied to any costs of the
Tenant Improvements relating to the purchase of any furniture, personal property or other
non-building system equipment.

7. Changes. Any changes to Landlord’s Work (each, a “Change”) requested by
Landlord or Tenant after Tenant approves the Approved Plans in writing shall be requested and
instituted in accordance with the provisions of this Section 7 and shall be subject to the
reasonable written approval of the other party, except for any Minor Variations.

 

G-3

 

7.1. Changes Requested by Landlord.

(a) Landlord may request Changes after Tenant approves the Approved Plans by notifying Tenant
thereof in writing in substantially the same form as the AIA standard change order form (a
“Landlord Change Order Request”), which Landlord Change Order Request shall detail the
nature and extent of any requested Changes. If the nature of a Change requires revisions to the
Approved Plans, then Landlord shall be solely responsible for the cost and expense of such
revisions (except for Minor Variations).

(b) Tenant shall approve or reject any Landlord Change Order Requests in accordance with the
procedures established pursuant to Section 2. If Tenant does not approve in writing a
Landlord Change Order Request, then such Landlord Change Order Request shall be deemed rejected by
Tenant, and Landlord shall not be permitted to alter Landlord’s Work as contemplated by such
Landlord Change Order Request.

(c) In recognition and consideration of the fact that the Premises and Tenant Improvements
have not been constructed as of the date hereof, it is hereby agreed by the parties hereto that the
Landlord may make Minor Variations (as herein defined) in the size, design, engineering,
configuration and siting of Landlord’s Work, and such Minor Variations shall not render the Lease
void or voidable, nor shall any such Minor Variations entitle the Tenant to any reduction or
abatement in Rent, anything herein contained and any rule of law or equity to the contrary
notwithstanding. “Minor Variations” shall mean any modifications to Landlord’s Work, to the
extent such modifications are reasonably required to (i) comply with the requirements of applicable
governmental and quasi-governmental laws, regulations and codes (collectively, “Code”)
and/or to obtain or to comply with any required permit, (ii) comply with any request by the Tenant
for modifications to Landlord’s Work, (iii) comport with good design, engineering and construction
practices (provided such variations are not material) or (iv) make reasonable adjustments for field
deviations encountered in the construction of Landlord’s Work.

7.2. Changes Requested by Tenant. Tenant may request Changes after Tenant approves
the Approved Plans by notifying Landlord thereof in writing in substantially the same form as the
AIA standard change order form (a “Tenant Change Order Request”), which Tenant Change Order
Request shall detail the nature and extent of any requested Changes. If the nature of a Change
requires revisions to the Approved Plans, then Tenant shall be solely responsible for the cost and
expense of such revisions. Tenant shall reimburse Landlord for all additional costs and expenses
payable by Landlord to complete Landlord’s Work due to a Tenant-requested Change in accordance with
the payment provisions of this Work Letter. Tenant Change Order Requests shall be signed by
Tenant’s Authorized Representative.

7.3. Preparation of Estimates. Landlord shall, before proceeding with any Change, use
its best efforts, prepare as soon as is reasonably practicable (but in no event more than five (5)
business days after delivering a Landlord Change Order Request to Tenant or receipt of a Tenant
Change Order Request) an estimate of the increased costs or savings that would result from such
Change, as well as an estimate of such Change’s effects on the Schedule. Subject to Section
7.1 (c), Tenant shall have five (5) business days after receipt of such information from
Landlord to (a) in the case of a Landlord Change Order Request, approve or reject such Landlord
Change Order Request in writing or (b) in the case of a Tenant Change Order Request, notify
Landlord in writing of Tenant’s decision either to proceed with or abandon the Tenant-requested
Change.

8. Miscellaneous.

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

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

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

 

G-4

 

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

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

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

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

8.8. Assigns. Each of the covenants, conditions and agreements herein contained shall
inure to the benefit of and shall apply to and be binding upon the parties hereto and their
respective heirs; legatees; devisees; executors; administrators; and permitted successors, assigns,
sublessees. Nothing in this Section 8.8 shall in any way alter the provisions of the Lease
restricting assignment or subletting.

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

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

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

G-5

 

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

LANDLORD:

BMR-LANDMARK AT EASTVIEW LLC,

a Delaware limited liability company

	 	 	 	 	 
	By:

	 	 
	 	 
	 	 	 	 	 
	Name:

	 	 	 	 
	 	 	 	 	 
	Title:

	 	 	 	 
	 	 	 	 	 

TENANT:

EPICEPT CORPORATION,

a [                    ] corporation

	 	 	 	 	 
	By:

	 	 
	 	 
	 	 	 	 	 
	Name:

	 	 	 	 
	 	 	 	 	 
	Title:

	 	 	 	 
	 	 	 	 	 

 

 

 

EXHIBIT A

SCHEDULE

 

 

 

SCHEDULE 2.1

LANDLORD’S WORK PLANS

 

 

 

EXHIBIT H

HVAC CALCULATION MODEL

Monthly HVAC (Heating, Ventilation and Air Conditioning) billings for each tenant are calculated by
multiplying the monthly airflow in million cubic feet (MCF) for each tenant by the cost per MCF,
also calculated monthly.

The monthly air flow for each tenant is determined by multiplying the full-load airflow rating of
each fan feeding the tenant space in cubic feet per minute (CFM) by the runtime factor provided on
the fan schedule and by 60 to provide an hourly usage in cubic feet. This is done each hour, and
summed for the month to provide a total airflow for the month, expressed in MCF.

The runtime factor for each fan is provided on a fan schedule, and accounts for both partial
runtime during an hour, and reduced flow on setback. Any changes to the fan schedule for billing
purposes must be requested by the tenant in writing at least five (5) working days before the
change is to take place.

Airflow from a fan providing air to more than one tenant will be allocated based on the percentage
of MCF delivered.

The cost per MCF is determined by taking the appropriate costs associated with supplying and
delivering conditioned air to tenant space and dividing it by the total airflow provided to the
site, calculated as above and summing across all fans. This cost is calculated monthly.

 

H-1

 

EXHIBIT I

LETTER OF CREDIT

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

LETTER OF CREDIT

Date:                     , 200  

	 	 	 	 	 	 	 
	 

	 	 	 	(the “Beneficiary”)
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Attention:

	 	 	 	 	 	 
	 	 	 	 	 	 	 
	L/C. No.:

	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Loan No. :

	 	 	 	 	 	 
	 	 	 	 	 	 	 

Ladies and Gentlemen:

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

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

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

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

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

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

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

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

 

I-1

 

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

The Expiry Date shall automatically be extended by one year (but never beyond                      the
“Outside Date”) unless, on or before the date 90 days before any Expiry Date, we have given
Beneficiary notice that the Expiry Date shall not be so extended (a “Nonrenewal Notice”).
We shall promptly upon request confirm any extension of the Expiry Date under the preceding
sentence by issuing an amendment to this L/C, but such an amendment is not required for the
extension to be effective. We need not give any notice of the Outside Date.

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

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

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

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

Very truly yours,

[Issuer Signature]

 

I-2

 

EXHIBIT A

FORM OF SIGHT DRAFT

[Beneficiary Letterhead]

TO:

[Name and Address of Issuer]

SIGHT DRAFT

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

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

                                                            .]

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

Date:                                         

 

 

 

EXHIBIT B

FORM OF TRANSFER NOTICE

[Beneficiary Letterhead]

TO:

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

TRANSFER NOTICE

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

[Transferee Name and Address]

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

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

Date:

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