Document:

Exhibit
10.2

DESCRIPTION
OF THE GEORGIA GULF CORPORATION

DEFERRED COMPENSATION PLAN

Pursuant to the Georgia Gulf Corporation Deferred
Compensation Plan (the “Plan”), a limited number of executives, including all
executive officers, may elect to defer a portion of their otherwise currently
taxable compensation.  Participants must
make a written election prior to the beginning of the calendar year in or for
which their compensation would otherwise be paid, and may elect to defer up to
90% of base compensation and 100% of annual bonus.

While deferred, the compensation account will be
credited with earnings based on an election among investment-tracking options
made available under the Plan.  The Plan
is not funded, although the company has established reserves to facilitate the
distribution of accounts when due.

Participants may also elect, at the time of electing
to defer, whether a limited number of their annual deferral accounts will be
paid to them at a stated time prior to their anticipated terminations of employment.  In the absence of such an in-service
distribution, all accounts will be distributable upon termination of service—whether
because of retirement, death, disability, or other termination.   Participants may elect that, should they
terminate service (including termination for disability) at or after attaining
age 62 (normal retirement age), they will receive either a lump sum or up to
fifteen annual installment payments.  If
a participant terminates prior to retirement and prior to completing three
years of service, he or she will receive a lump sum payment regardless of any
election; if termination follows the completion of at least three years of
service, it may be paid either in a lump sum or in up to five annual
installments.  Payments cannot begin for “specified
employees,” under applicable law,
until six months after termination of service.

In the event of death prior to commencement of
payments, distributions will be made in a lump sum, but if death occurs after
payments in installments have begun, they will continue to be made to the
participant’s beneficiary.  In the event
of a change in control, payment will be made to all participants in a lump
sum.  A participant may apply for a
hardship distribution based on illness, accident or property loss due to
casualty, in which event the company may make an early distribution of the
required amount.

Participants may modify prior elections as to
distributions to the degree permitted by federal tax law applicable to
nonqualified deferred compensation arrangements.

A final, written version of the Plan document will be
prepared following release of pertinent Treasury regulations.Exhibit 10.35

FOURTH
AMENDMENT

THIS  FOURTH AMENDMENT (this “Fourth Amendment”)
is made and entered into as of the 30th day of
November, 2006, by and between CA-FOOTHILL
RESEARCH CENTER LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”), and
AFFYMAX, INC., a Delaware corporation (“Tenant”).

RECITALS

A.                                   Landlord
(as successor in interest by conversion to EOP-Foothill Research Center, L.L.C., a Delaware limited liability
company, successor in
interest to Spieker Properties, L.P., a California limited partnership,
successor in interest to Miranda Associates, a California general partnership),
as landlord, and Tenant (as successor in interest to Affymax Research
Institute, a California corporation), as tenant, are parties to that certain
Research and Development/Office Lease dated May 30, 1990 (the “Original Lease”), as amended by  that certain Consent to Sublease dated July
30, 1990 (the “Consent”), that certain First
Amendment to Lease dated November 16, 1999 (the “First
Amendment”), that certain Second Amendment to Lease dated December
20, 1999 (the “Second Amendment”), and that
certain Third Amendment dated December 31, 2001 (the “Third
Amendment”), (collectively, the “Lease”)
pursuant to which Landlord has leased to Tenant certain premises containing
approximately 53,830 rentable square feet (referred to herein as the “Initial  Premises”)
consisting of the entire building commonly known as 4001 Miranda Avenue located
at 4001 Miranda Avenue, Palo Alto, California (the “4001 Miranda
Building”).

B.                                     Tenant has requested that additional space
containing approximately 30,630 rentable
square feet consisting of the entire 2-story building  known
as 4015 Miranda Avenue (the “4015 Miranda  Building”), as more
particularly shown on Exhibit A
hereto (the “Must-Take Space”) be added to the
Premises following the expiration of the existing tenant’s lease for the
Must-Take Space and that the Lease be appropriately amended, and Landlord is
willing to do the same on the following terms and conditions.  The existing tenant of the Must-Take Space is
Tibco Software, Inc., a Delaware corporation (“Tibco”),
pursuant to a lease dated January 21, 2000 (the “Existing
Lease”). Tibco has subleased the Must-Take Space to Tenant pursuant
to a Sublease dated September 1, 2006 (the “Tibco
Sublease”), the term of which is scheduled to expire on December 31,
2010, and Landlord has consented to the Tibco Sublease pursuant to the terms of
that certain Consent to Sublease of approximately even date herewith.

C.                                     As described in the Lease, the 4001 Miranda
Building and the 4015 Miranda Building are part of a project known as the
Foothill Research Center, which currently also includes the buildings located
at 4005 Miranda Avenue (the “4005 Miranda Building”)
and at 4009 Miranda Avenue (the “4009 Miranda Building”).

D.                                    The Lease by its terms shall expire on September
30, 2007 (“Prior Termination Date”), and the
parties desire to extend the term of the Lease (the “Term”),
all on the following terms and conditions.

NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
agree as follows:

I.                                         Expansion: Must-Take Space.

A.                                   Must-Take Space. Tenant shall be required to lease from
Landlord and Landlord shall be required to lease to Tenant the Must-Take Space
(as defined in Recital B above).

B.                                     Must-Take Effective Date.

1.                                       Subject
to Subsection E below, Landlord shall deliver possession of the Must-Take Space
to Tenant and Tenant shall accept such space on January 1, 2011 (the “Must-Take Effective Date”). 
The Term with respect to the Must-Take Space (the “Must-Take
Term”) shall commence on the Must-Take Effective Date and end,
unless sooner terminated pursuant to the terms of the Lease, as amended hereby,
on the Extended Termination Date (as defined below), it being the intention

 1
 

of the parties hereto that the term for the Must-Take
Space and the Extended Term for the Initial Premises shall be coterminous.  The
Must-Take Effective Date shall be delayed to the extent that Landlord fails to
deliver possession of the Must-Take Space for any reason, including but not
limited to, holding over by prior third party occupants.  Any such delay in the Must-Take Effective
Date shall not subject Landlord to any liability for any loss or damage
resulting therefrom; provided, however, Landlord, at its expense, shall use
commercially reasonable efforts to obtain possession of the Must-Take Space for
delivery to Tenant as soon as practicable following any such holdover.  If the Must-Take Effective Date is delayed,
the Extended Termination Date shall not be similarly extended.  If Tenant is in occupancy of the Must-Take
Space pursuant to the Tibco Sublease on the day preceding the Must-Take
Effective Date, the Tibco Sublease shall be deemed terminated and Tenant shall
be deemed to have taken possession of the Must-Take Space pursuant to the terms
of this Fourth Amendment as of the Must-Take Effective Date.

2.                                       As
of the Must-Take Effective Date, the Must-Take Space shall become part of the
Premises and the “Premises”, as defined in the Lease, shall be increased from
53,830 rentable square feet in the 4001 Miranda Building to 84,460 rentable square in the 4001 Miranda Building and the
4015 Miranda Building by the addition of the Must-Take Space, subject to the
modifications to the Lease set forth in this Fourth Amendment.  The Must-Take Space shall be subject to all
the terms and conditions of the Lease except as expressly modified herein and
except that Tenant shall not be entitled to receive any allowances, abatements
or other financial concessions granted with respect to the Initial Premises
except as expressly provided in this Section I.

C.                                     Rent for Must-Take Space.

1.                                      The
initial Base Rent rate per rentable square foot for the Must-Take Space during
the first year of the Must-Take Term (the “Initial Base Rent”)
shall equal the Prevailing Market (hereinafter defined) rate per rentable
square foot for the Must-Take Space, subject to the Minimum Initial Base Rent
and Maximum Initial Base Rent, all as set forth below.  Base Rent
during the Must-Take Term shall
increase on each anniversary of the Must-Take Effective Date by three percent
(3%) of the Base Rent for the previous period. 
Base Rent attributable to the Must-Take Space shall be payable in
monthly installments in accordance with the terms and conditions of Section 4
of the Lease, provided that the CPI adjustments set forth in Paragraph 2 of the
First Amendment and Section 4(b) of the Lease shall not apply to the Must-Take
Space.

2.                                      During
the Must-Take Term,  Tenant shall
pay Property Expenses for the Must-Take Space on the same terms and conditions
set forth in the Lease, as amended by this Fourth Amendment, except that in
connection with the Must-Take Space, for purposes of Sections 6 and 47 of the
Lease the “Premises” shall mean the Must-Take Space, the “Building” shall mean
the 4015 Miranda Building, and “Tenant’s Percentage” for the Must-Take Space
shall be 15.9432%.

D.                                    Must-Take Space
Improvements.  The Must-Take Space (including improvements and
personalty, if any) shall be accepted by Tenant in its as-built, “as-is”
condition and configuration existing on the Must-Take Effective Date, including
any improvements performed by Tenant during the term of the Tibco Sublease, if
any.  Following
the Must-Take Effective Date, Tenant may perform improvements to the Must-Take
Space in accordance with the Must-Take Work Letter attached hereto as Exhibit B and Tenant shall be entitled to an improvement
allowance in connection with such work as more fully described in Exhibit B.  Any
improvements performed by Tenant to the Must-Take Space shall be subject to
Section 12 of the Lease.  Landlord and
Tenant acknowledge that Tenant may perform improvements in the Must-Take Space
during Tenant’s possession thereof pursuant to the Tibco Sublease, and that any
such improvements shall be subject to the terms of the Existing Lease and the
Tibco Sublease (all as defined in Recital B). 
Any such improvements performed in the Must-Take Space during Tenant’s
possession pursuant to the Tibco Sublease

 2
 

shall
be considered “Tenant Improvements” under the Lease effective upon the
Must-Take Effective Date, including for purposes of categorization of such
improvements pursuant to Section 12.B and Exhibit E of
the Original Lease, as though the same had been performed during the Must-Take
Term.

E.                                      Existing Lease.  If
the Existing Lease terminates with respect to the Must- Take Space prior to
December 31, 2010 and the Tibco Sublease has not been previously terminated for
any reason, the Tibco Sublease automatically shall be deemed terminated as of
the date of termination of the Existing Lease (the “Early
Termination Date”), the Must-Take Effective Date automatically shall
be accelerated to the day immediately following the Early Termination Date (the
“Advance Must-Take Effective Date”),
Tenant shall be deemed to have taken possession of the Must-Take Space pursuant
to the terms of the Lease and this Must-Take provision as of the Advance
Must-Take Effective Date, and the terms and conditions of this Lease applicable
to the Must-Take Space shall be in full force and effect with respect to the
Must-Take Space as of the Advance Must-Take Effective Date, except that (a) the
Must-Take Term shall be extended to include the period commencing upon the
Advance Must-Take Effective Date through and including December 31, 2010 (such
period being referred to herein as the “Advance Must-Take Term”),
and (b) the Base Rent for the Must-Take Space during the Advance Must-Take Term
shall be the then Prevailing Market rate for the Must-Take Space, as determined
in accordance with Subsection F below, as modified by this paragraph, provided
that there shall be no Minimum Initial Base Rent or Maximum Initial Base Rent
for such purposes. Landlord and Tenant acknowledge and agree that the
determination of Base Rent for the Advance Must-Take Term is independent of and
shall not affect in any way the determination of Base Rent for the remainder of
the Must-Take Term, as set forth in Subsection F below. In the event that the
Tibco Sublease is in effect but Tenant has not yet taken possession of a
portion of the Must-Take Space by the Advance Must-Take Effective Date, then
Tenant shall take possession of such portion of the Must-Take Space, in its
then as-is condition, immediately upon Landlord’s recovery of possession
thereof, and Tenant shall not be required to pay Rent with respect to such
portion until Landlord has so recovered possession.  Promptly following the Early Termination
Date, if any (regardless of whether such date is prior to April 1, 2010,
notwithstanding Paragraph F.1 below), Landlord shall commence the procedure set
forth in Subsection F below for determining the Prevailing Market rate for the
Must-Take Space during the Advance Term.

F.                                      Procedure for Determining Prevailing Market.

1.                                       No
earlier than April 1, 2010, Landlord shall advise Tenant of the applicable
Initial Base Rent for the Must-Take Space for the Must-Take Term (excluding
Base Rent for the Advance Must-Take Term, if any).  Tenant, within 30 days thereafter, shall
either (i) give Landlord final binding written notice (“Binding Notice”) of Tenant’s acceptance of Landlord’s
determination of the Initial Base Rent, or (ii) if Tenant disagrees with
Landlord’s determination, provide Landlord with written notice of rejection
(the “Rejection Notice”).  If Tenant fails to provide Landlord with
either a Binding Notice or Rejection Notice within such 30 day period, then the
Initial Base Rent set forth in Landlord’s notice shall be deemed correct and
shall be binding on Tenant.  If Tenant
provides Landlord with a Binding Notice (or fails to act within the 30 day
period provided above), Landlord and Tenant shall enter into the Must-Take
Amendment (as defined below) upon the terms and conditions set forth
herein.  If Tenant provides Landlord with
a Rejection Notice, Landlord and Tenant shall work together in good faith to
agree upon the Prevailing Market rate. 
Upon agreement, Landlord and Tenant shall enter into the Must-Take
Amendment in accordance with the terms and conditions hereof.  Notwithstanding the foregoing, if Landlord
and Tenant fail to agree upon the Prevailing Market rate within 30 days after
the date Tenant provides Landlord with a Rejection Notice, Tenant, by written
notice to Landlord (the “Arbitration Notice”)
within 5 days after the expiration of such 30 day period, shall have the right
to have the Prevailing Market rate determined in accordance with the arbitration
procedures described in Paragraph 2 below. If Landlord and Tenant fail to agree
upon the Prevailing Market rate within the 30 day period

 3
 

described and Tenant fails to timely exercise its
right to arbitrate, then the Initial Base Rent set forth in Landlord’s notice
shall be deemed correct and shall be binding on Tenant.

2.                                       Arbitration
Procedure.

(a)                                  If
Tenant provides Landlord with an Arbitration Notice, Landlord and Tenant,
within 10 days after the date of the Arbitration Notice, shall each
simultaneously submit to the other, in a sealed envelope, its good faith
estimate of the Prevailing Market rate (collectively referred to as the “Estimates”).  If the
higher of such Estimates is not more than 105% of the lower of such Estimates,
then Prevailing Market rate shall be the average of the two Estimates.  If the Prevailing Market rate is not resolved
by the exchange of Estimates, then, within 10 days after the exchange of
Estimates, Landlord and Tenant shall each select an appraiser to determine
which of the two Estimates most closely reflects the Prevailing Market
rate.  Each appraiser so selected shall
be certified as an MAI appraiser or as an ASA appraiser and shall have had at
least 5 years experience within the previous 10 years as a real estate appraiser
working in Palo Alto, California, with working knowledge of current rental
rates and practices.  For purposes
hereof, an “MAI” appraiser means an individual who holds an MAI designation
conferred by, and is an independent member of, the American Institute of Real
Estate Appraisers (or its successor organization, or in the event there is no
successor organization, the organization and designation most similar), and an “ASA”
appraiser means an individual who holds the Senior Member designation conferred
by, and is an independent member of, the American Society of Appraisers (or its
successor organization, or, in the event there is no successor organization,
the organization and designation most similar).

(b)                                 Upon
selection, Landlord’s and Tenant’s appraisers shall work together in good faith
to agree upon which of the two Estimates most closely reflects the Prevailing
Market rate.  The Estimate chosen by such
appraisers shall be binding on both Landlord and Tenant as the Initial Base
Rent for the Must-Take Space during the first year  of
the Must-Take Term, subject to the terms of clause (d) below regarding the
Minimum Initial Base Rent and the Maximum Initial Base Rent, both as defined
therein.  If either Landlord or
Tenant fails to appoint an appraiser within the 10 day period referred to
above, the appraiser appointed by the other party shall be the sole appraiser
for the purposes hereof.  If the two
appraisers cannot agree upon which of the two Estimates most closely reflects
the Prevailing Market rate within 20 days after their appointment, then, within
10 days after the expiration of such 20 day period, the two appraisers shall
select a third appraiser meeting the aforementioned criteria.  Once the third appraiser (i.e. arbitrator)
has been selected as provided for above, then, as soon thereafter as
practicable but in any case within 20 days, the arbitrator shall make his
determination of which of the two Estimates most closely reflects the
Prevailing Market rate and such Estimate shall be binding on both Landlord and
Tenant as the Initial Base Rent rate for the Must-Take Space, subject to the
terms of clause (d) below regarding the Minimum Initial Base Rent and the
Maximum Initial Base Rent, both as defined therein. If the arbitrator believes
that expert advice would materially assist him, he may retain one or more
qualified persons to provide such expert advice.  The parties shall share equally in the costs
of the arbitrator and of any experts retained by the arbitrator.  Any fees of any appraiser, counsel or experts
engaged directly by Landlord or Tenant, however, shall be borne by the party
retaining such appraiser, counsel or expert.

(c)                                  If
the Prevailing Market rate (and accordingly the Initial Base Rent) has not been
determined by the Must-Take Effective Date,

 4
 

Tenant shall commence payment of Base Rent for the
Must-Take Space as of the Must-Take Effective Date at the baseline rate of
$38.40 per rentable square foot per annum; provided that in the event of a
Must-Take Advance Term Tenant shall instead commence payment of Base Rent equal
to the Base Rent that Tenant would have paid during the Advance Must-Take Term
pursuant to the Tibco Sublease had the Tibco Sublease remained in effect, until
such time as the Base Rent for the Advance Must-Take Term is determined.  Upon determination of the Initial Base Rent,
the Initial Base Rent for the Must-Take Space shall be retroactively adjusted
to the applicable effective date.  If
such adjustment results in an underpayment of Base Rent by Tenant, Tenant shall
pay Landlord the amount of such underpayment within 30 days after the
determination thereof.  If such
adjustment results in an overpayment of Base Rent by Tenant, Landlord shall
credit such overpayment against the next installment of Base Rent due under the
Lease for the Must-Take Space and, to the extent necessary, any subsequent
installments, until the entire amount of such overpayment has been credited
against Base Rent for the Must-Take Space.

(d)                                 Notwithstanding
anything to the contrary contained herein, the parties agree that the Initial
Base Rent for the Must-Take Space (except as provided herein with respect to an
Advance Must-Take Term) shall not be less than $30.72 per rentable square foot
per annum (the “Minimum Initial Base Rent”) and
shall not be greater than $46.08 per rentable square foot per annum (the “Maximum Initial Base Rent”), regardless of any determination
of Prevailing Market rate made by the appraisers or arbitrator, as described
above.

G.                                     Must-Take
Amendment.  Following the
determination of the Initial Base Rent for the Must-Take Space (whether for the
primary Must-Take Term or for an Advance Must-Take Term), Landlord shall
prepare an amendment (the “Must-Take Amendment”)
to reflect the Base Rent, term and other appropriate terms for the Must-Take
Space.  The Renewal Amendment shall be
sent to Tenant within a reasonable time after receipt of the Binding Notice and
Tenant shall execute and return the Renewal Amendment to Landlord within 15
days after Tenant’s receipt of same, but, upon final determination of the
Prevailing Market rate applicable during the Must-Take Term as described
herein, the Base Rent for the Must-Take Space shall be fully effective whether
or not the Must-Take Amendment is executed.

H.                                    Prevailing
Market.  For purposes of this
Must-Take provision, “Prevailing Market”
shall mean the arms length fair market annual rental rate per rentable square
foot under  new leases entered into on or about
the date on which the Prevailing Market is being determined hereunder for space
comparable to the Premises in the Buildings and office buildings comparable to
the Building in the Palo Alto, California area. 
The determination of Prevailing Market shall take into account any
material economic differences between the terms of this Lease and any
comparison lease or amendment, such as rent abatements, construction costs
(including the Must-Take Allowance) and other concessions and the manner, if
any, in which the landlord under any such lease is reimbursed for operating
expenses and taxes.

II.                                    Extension.  The Term of the Lease is hereby
extended for a period of 84 months and shall expire on September 30, 2014 (“Extended Termination Date”), unless sooner terminated in
accordance with the terms of the Lease. 
That portion of the Term commencing the day immediately following the
Prior Termination Date (“Extension Date”)
and ending on the Extended Termination Date shall be referred to herein as the “Extended Term”.

III.                                Base Rent. The Base Rent, Property Expenses and all other charges under the Lease,
including the adjustments set forth in Paragraph 2 of the First Amendment,
shall be payable as provided therein with respect to the Initial Premises
through and including the

 5
 

Prior
Termination Date.  As of the Extension
Date, the schedule of Base Rent payable with respect to the Initial Premises
during the Extended Term is the following:

	
  Period

  	
   

  	
  Annual Rate

  Per Square Foot

  	
   

  	
  Monthly

  Base Rent

  	
   

  
	
  10/01/07 – 09/30/08

  	
   

  	
  $

  	
  31.80

  	
   

  	
  $

  	
  142,649.50

  	
   

  
	
  10/01/08 – 09/30/09

  	
   

  	
  $

  	
  32.75

  	
   

  	
  $

  	
  146,911.04

  	
   

  
	
  10/01/09 – 09/30/10

  	
   

  	
  $

  	
  33.74

  	
   

  	
  $

  	
  151,352.02

  	
   

  
	
  10/01/10 – 09/30/11

  	
   

  	
  $

  	
  34.75

  	
   

  	
  $

  	
  155,882.71

  	
   

  
	
  10/01/11 – 09/30/12

  	
   

  	
  $

  	
  35.79

  	
   

  	
  $

  	
  160,547.98

  	
   

  
	
  10/01/12 – 09/30/13

  	
   

  	
  $

  	
  36.86

  	
   

  	
  $

  	
  165,347.82

  	
   

  
	
  10/01/13 –
  09/30/14

  	
   

  	
  $

  	
  37.97

  	
   

  	
  $

  	
  170,327.09

  	
   

  

 

Section 4(b) of the Lease and
Paragraph 2 of the First Amendment (CPI adjustments) shall be of no force or
effect during the Extended Term.  All
Base Rent during the Extended Term shall be payable by Tenant in accordance
with the terms of the Lease, as amended hereby.

IV.                                 Security Deposit and Letter of Credit.

A.                                   Modifications to Lease. 
Section 5 of the Original Lease is hereby amended to delete all
references to a letter of credit, the parties hereto acknowledging that the
provisions of this Section IV shall govern any letter of credit (including the
Letter of Credit defined below) obtained by Tenant for the benefit of Landlord
in connection with the Lease, as amended hereby.  Landlord and Tenant acknowledge that all
references in Section 5 of the Lease to an Additional Deposit are of no force
and effect, as pursuant to Paragraph 2 of the Second Amendment, the entire
Current Security Deposit (defined in Paragraph D below) is the “Security
Deposit” under the Lease.

B.                                     Letter of Credit.

1.                                      General
Provisions.  Simultaneously with Tenant’s execution and delivery of this Fourth
Amendment, Tenant shall deliver to Landlord, as collateral for the full
performance by Tenant of all of its obligations under the Lease, as amended
hereby and from time to time hereafter, and for all losses and damages Landlord
may suffer as a result of Tenant’s default beyond applicable notice and cure
periods, including, but not limited to, any post lease termination damages
under section 1951.2 of the California Civil Code, a standby, unconditional,
irrevocable, transferable letter of credit (the “Letter of
Credit”), which Letter of Credit shall: (a) be in the amount of
$1,135,000.00 (the “LOC Amount”);
(b) be issued on the form attached hereto as Exhibit D;
(c) name Landlord as its beneficiary; and (d) be drawn on an FDIC
insured financial institution satisfactory to the Landlord.  The Letter of Credit (and any renewals or
replacements thereof) shall be for a term of not less than 1 year.  Tenant agrees that it shall from time to
time, as necessary, whether as a result of a
draw on the Letter of Credit by Landlord pursuant to the terms hereof or as a
result of the expiration of the Letter of Credit then in effect, renew or
replace the original and any subsequent Letter of Credit so that a Letter of
Credit, in the amount required hereunder, is continuously in effect until a
date (the “Final LOC Expiration Date”) which
is at least 60 days after the Extended Termination Date of the Lease, as the
same may be further extended or renewed. 
If the Letter of Credit held by Landlord expires earlier than the
Final LOC Expiration Date (whether by reason of a stated expiration date or a
notice of termination or non-renewal given by the issuing bank), Tenant shall
deliver a new Letter of Credit or certificate of renewal or extension (a “Renewal or Replacement LOC”) to Landlord not later than 60
days prior to the expiration date of the Letter of Credit then held by
Landlord.  Any Renewal or Replacement LOC
shall comply with all of the provisions of this Section IV.B.

2.                                      Drawings
under Letter of Credit. Landlord may, without prejudice to any other remedy
provided in the Lease or by law, draw on the Letter of Credit and use all or
part of the proceeds in accordance with the provisions of Section IV.B.3
below.  In addition, if Tenant fails to
furnish a Renewal or Replacement LC complying with all of the provisions of
this

 6
 

Section IV.B at least 60
days prior to the stated expiration date of the Letter of Credit then held by
Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds
thereof (and such proceeds need not be segregated) in accordance with the terms
of this Section IV.B (the “LOC Proceeds Account”).

3.                                       Use
of Proceeds by Landlord.  Subject to
the provisions of this Paragraph 3, the proceeds of the Letter of Credit shall
constitute Landlord’s sole and separate property (and not Tenant’s property or
the property of Tenant’s bankruptcy estate) and, following Tenant’s default
under the Lease, as amended hereby or as hereafter further amended, beyond any
applicable notice and cure period, or as otherwise specifically agreed by
Landlord and Tenant,  Landlord may
immediately upon any draw (and without notice to Tenant, other than any notice
otherwise required under the Lease prior to an event of default) apply or offset
the proceeds of the Letter of Credit: (a) 
against any Rent payable by Tenant under this Lease that is not paid
when due; (b) against all losses and damages that Landlord has suffered or that
Landlord reasonably estimates that it may suffer as a result of Tenant’s
failure to comply with one or more provisions of this Lease, including any
damages arising under section 1951.2 of the California Civil Code following
termination of the Lease; (c) against any costs incurred by Landlord in
connection with the Lease (including attorneys’ fees); and (d) against any
other amount that Landlord may spend or become obligated to spend by reason of
Tenant’s default.  Provided Tenant is not
then in default of its obligations under the Lease, Landlord agrees to pay to
Tenant within 60 days after the Final LOC Expiration Date the amount of any
proceeds of the Letter of Credit received by Landlord and not applied as
allowed above; provided, that if prior to the Final LOC Expiration Date a
voluntary petition is filed by Tenant or any guarantor of the Lease (if any),
or an involuntary petition is filed against Tenant or any guarantor of the
Lease (if any) by any of Tenant’s or such guarantor’s creditors, under the
Federal Bankruptcy Code, then Landlord shall not be obligated to make such
payment in the amount of the unused Letter of Credit proceeds until either all
preference issues relating to payments under this Lease have been resolved in
such bankruptcy or reorganization case or such bankruptcy or reorganization
case has been dismissed, in each case pursuant to a final court order not
subject to appeal or any stay pending appeal.

4.                                       Additional
Covenants of Tenant.  If, as result
of any application or use by Landlord of all or any part of the Letter of
Credit, the amount of the Letter of Credit shall be less than the Letter of
Credit Amount, Tenant shall, within 5 days thereafter, provide Landlord with
additional letter(s) of credit in an amount equal to the deficiency (or a
replacement letter of credit in the total Letter of Credit Amount), and any
such additional (or replacement) letter of credit shall comply with all of the
provisions of this Section IV.B, and if Tenant fails to comply with the
foregoing, notwithstanding anything to the contrary contained in this Lease,
the same shall constitute an incurable default by Tenant.  Tenant further covenants and warrants that it
will neither assign nor encumber the Letter of Credit or any part thereof and
that neither Landlord nor its successors or assigns will be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance.

5.                                       Nature
of Letter of Credit.  Landlord and
Tenant (a) acknowledge and agree that in no event or circumstance shall the
Letter of Credit or any renewal thereof or substitute therefor or any proceeds
thereof (including the LOC Proceeds Account) be deemed to be or treated as a “security
deposit” under any Law applicable to security deposits in the commercial
context including Section 1950.7 of the California Civil Code, as such section
now exist or as may be hereafter amended or succeeded (“Security
Deposit Laws”), (b) acknowledge and agree that the Letter of Credit
(including any renewal thereof or substitute therefor or any proceeds thereof)
is not intended to serve as a security deposit, and the Security Deposit Laws
shall have no applicability or relevancy thereto, and (c) waive any and all
rights, duties and obligations either party may now or, in the future, will
have relating to or arising from the Security Deposit Laws. Tenant hereby
waives the provisions of Section 1950.7 of

 7
 

the California Civil Code
and all other provisions of Law, now or hereafter in effect, which (i)
establish the time frame by which Landlord must refund a security deposit under
a lease, and/or (ii) provide that Landlord may claim from the security deposit
only those sums reasonably necessary to remedy Defaults in the payment of rent,
to repair damage caused by Tenant or to clean the Premises, it being agreed
that Landlord may, in addition, claim those sums specified above in this
Section IV.B.3.

6.                                       Application.  The provisions of this Section IV.B shall
apply to the Letter of Credit or any Renewal or Replacement LOC notwithstanding
any provisions to the contrary contained in the Lease.

C.                                     Reductions in Letter of Credit.  So
long as Tenant under the Lease is the “Tenant” named in this Fourth Amendment,
the LOC Amount may be reduced at the times and to the corresponding amounts
specified in Paragraphs 1 and  2 below on
the dates set forth therein (each a “Reduction Date”),
if each of the following conditions is satisfied to Landlord’s satisfaction:  (i) Tenant is not and has not been in default
under the terms of the Lease beyond any applicable cure period  during the 36 month  period
preceding the applicable Reduction Date, (ii) at the time of the applicable
Reduction Date, Tenant’s product known as Hematide is approved by the US Food
& Drug Administration for medical use in humans, (iii) at the time of the
applicable Reduction Date, Hematide is generally available for prescription and
distribution through appropriate medical channels, and (iv) at the time of the
applicable Reduction Date, Tenant has Working Capital (as defined below) on
hand in excess of (A) twenty-four (24), multiplied by (B) Tenant’s Average Burn
Rate (as defined below).  “Working Capital” shall be determined by Landlord in its
reasonable discretion and shall mean assets less intangible assets and total
liabilities, with intangible assets including nonmaterial benefits such as
goodwill, patents, copyrights, and trademarks. 
“Average Burn Rate” also shall be
determined by Landlord in its reasonable discretion and shall mean (i) the sum
of Tenant’s expenses for the previous 12 months, divided by (ii) twelve (12).
Tenant shall deliver to Landlord for review Tenant’s financial statements
prepared in accordance with generally accepted accounting principles and
audited by a nationally recognized public accounting firm reasonably acceptable
to Landlord, and any other financial information reasonably requested by
Landlord in connection with Landlord’s determination of Working Capital and
Burn Rate.

1.                                       Subject
to the foregoing, at any time after the end of the 61st month of the Extended Term, the LOC Amount may
be reduced to $1,010,000.00.

2.                                       Subject
to the foregoing, at any time after the end of the 73rd month of the Extended Term, the LOC Amount may
be reduced to $885,000.00.

D.                                    Security Deposit. 
Landlord and Tenant hereby acknowledge and agree that, in accordance
with the terms of Paragraph 5 of the Original Lease, Paragraph 1 of the Second
Amendment and Section I.A of the Third Amendment, Landlord currently holds a
cash security deposit (the “Current Security Deposit”)  from Tenant in the amount of $1,235,000.00, which as
described in the Second Amendment constitutes a single “Security Deposit” under
the Lease.  Provided that Tenant is not
in default under the Lease, as amended hereby, as of the date Landlord has
received the Letter of Credit and Landlord and Tenant have fully executed and
delivered this Fourth Amendment, Landlord shall return  the
then unapplied portion of the Current Security Deposit to Tenant, less
$50,000.00, within 45 days. Tenant acknowledges and agrees that Landlord will
retain $50,000.00 of the Current Security
Deposit (the “Remaining Security Deposit”) to be
held by Landlord for the Extended Term, as the same may be further extended or
renewed, as an ongoing cash Security Deposit under the Lease, as amended
hereby, which shall be subject to the provisions governing the Security Deposit
set forth Paragraph 5 of the Original Lease, Paragraph 1 of the Second
Amendment and Section I.A of the Third Amendment.  Notwithstanding anything in the Lease to the
contrary, Tenant shall not have the right to convert the Remaining Security
Deposit into a letter of credit.

V.                                     Property Expenses.  For the
period commencing with the Extension Date and ending on the Extended
Termination Date, Tenant shall continue to pay for Property Expenses

 8
 

applicable to the Initial Premises in accordance with the terms of the
Lease, as amended hereby.

VI.                                 Renewal Option.

A.                                   Grant
of Option; Conditions.  Tenant shall
have the right to extend the Extended Term (the “Renewal
Option”) with respect to all of the Premises (as then defined under
the Lease) that are coterminous with the Initial Premises  for
one additional period of 5 years commencing on the day following the Extended
Termination Date and ending on the 5th anniversary of the Extended Termination
Date (the “Renewal Term”), if:

1.                                      Landlord
receives notice of exercise (“Initial Renewal Notice”)
not less than 9 full calendar months prior to the expiration of the Extended
Term and not more than 15 full calendar months prior to the expiration of the
Extended Term; and

2.                                      Tenant
is not in default under the Lease beyond any applicable cure periods at the
time that Tenant delivers its Initial Renewal Notice or at the time Tenant
delivers its Binding Notice (as defined below); and

3.                                      No
part of the Premises is sublet (other than pursuant to a Permitted Transfer, as
defined in Section 24 of the Lease, as amended by this Fourth Amendment) at the
time that Tenant delivers its Initial Renewal Notice or at the time Tenant
delivers its Binding Notice; and

4.                                      The
Lease has not been assigned (other than pursuant to a Permitted Transfer, as
defined in Section 24 of the Lease, as amended by this Fourth Amendment) prior
to the date that Tenant delivers its Initial Renewal Notice or prior to the
date Tenant delivers its Binding Notice.

B.                                     Terms
Applicable to Premises During Renewal Term.

1.                                      The
initial Base Rent rate per rentable square foot for the Premises during the
Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per
rentable square foot for the Premises.  Base Rent during the Renewal Term shall increase,
if at all, in accordance with the increases assumed in the determination of
Prevailing Market rate.  Base Rent
attributable to the Premises shall be payable in monthly installments in
accordance with the terms and conditions of Section 4 of the Lease, as amended
hereby.

2.                                      Tenant shall pay Property Expenses for the
Premises during the Renewal Term in accordance with Sections 4 and 6 of
the Lease, as amended hereby, and the manner and method in which Tenant
reimburses Landlord for Tenant’s share of Property Expenses shall be some of
the factors considered in determining the Prevailing Market rate for the
Renewal Term.

C.                                     Procedure
for Determining Prevailing Market. 
Within 30 days after receipt of Tenant’s Initial Renewal Notice,
Landlord shall advise Tenant of the applicable Base Rent rate for the Premises
for the Renewal Term.  Tenant, within 15
days after the date on which Landlord advises Tenant of the applicable Base
Rent rate for the Renewal Term, shall either (i) give Landlord final
binding written notice (“Binding Notice”)
of Tenant’s exercise of its Renewal Option, or (ii) if Tenant disagrees
with Landlord’s determination, provide Landlord with written notice of
rejection (the “Rejection Notice”).  If Tenant fails to provide Landlord with
either a Binding Notice or Rejection Notice within such 15 day period, Tenant’s
Renewal Option shall be null and void and of no further force and effect.  If Tenant provides Landlord with a Binding
Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined
below) upon the terms and conditions set forth herein.  If Tenant provides Landlord with a Rejection
Notice, Landlord and Tenant shall work together in good faith to agree upon the
Prevailing Market rate for the Premises during the Renewal Term.  Upon agreement, Tenant shall provide Landlord
with Binding Notice and Landlord and Tenant shall enter into the Renewal
Amendment in accordance with the terms and conditions hereof.  Notwithstanding the foregoing, if Landlord and
Tenant fail to agree upon the Prevailing Market rate within 30 days after the
date Tenant provides Landlord

 9
 

with the Rejection Notice, Tenant, by written notice
to Landlord (the “Arbitration Notice”)
within 10 days after the expiration of such 30 day period, shall have the right
to have the Prevailing Market rate determined in accordance with the
arbitration procedures described in Subsection D below.  If Landlord and Tenant fail to agree upon the
Prevailing Market rate within the 30 day period described and Tenant fails to
timely exercise its right to arbitrate, Tenant’s Renewal Option shall be deemed
to be null and void and of no further force and effect.

D.                                    Arbitration
Procedure.

1.                                      If
Tenant provides Landlord with an Arbitration Notice, Landlord and Tenant,
within 10 days after the date of the Arbitration Notice, shall each
simultaneously submit to the other, in a sealed envelope, its good faith
estimate of the Prevailing Market rate for the Premises during the Renewal Term
(collectively referred to as the “Estimates”).  If the higher of such Estimates is not more
than 105% of the lower of such Estimates, then Prevailing Market rate shall be
the average of the two Estimates.  If the
Prevailing Market rate is not resolved by the exchange of Estimates, then,
within 10 days after the exchange of Estimates, Landlord and Tenant shall each
select an appraiser to determine which of the two Estimates most closely
reflects the Prevailing Market rate for the Premises during the Renewal
Term.  Each appraiser so selected shall
be certified as an MAI appraiser or as an ASA appraiser and shall have had at
least 5 years experience within the previous 10 years as a real estate
appraiser working in Palo Alto, California, with working knowledge of current
rental rates and practices.  For purposes
hereof, an “MAI” appraiser means an individual who holds an MAI designation
conferred by, and is an independent member of, the American Institute of Real
Estate Appraisers (or its successor organization, or in the event there is no
successor organization, the organization and designation most similar), and an “ASA”
appraiser means an individual who holds the Senior Member designation conferred
by, and is an independent member of, the American Society of Appraisers (or its
successor organization, or, in the event there is no successor organization,
the organization and designation most similar).

2.                                      Upon
selection, Landlord’s and Tenant’s appraisers shall work together in good faith
to agree upon which of the two Estimates most closely reflects the Prevailing
Market rate for the Premises.  The
Estimate chosen by such appraisers shall be binding on both Landlord and Tenant
as the Base Rent rate for the Premises during the Renewal Term.  If
either Landlord or Tenant fails to appoint an appraiser within the 10 day
period referred to above, the appraiser appointed by the other party shall be
the sole appraiser for the purposes hereof. 
If the two appraisers cannot agree upon which of the two Estimates most
closely reflects the Prevailing Market within 30 days after their appointment,
then, within 10 days after the expiration of such 30 day period, the two
appraisers shall select a third appraiser meeting the aforementioned
criteria.  Once the third appraiser (i.e.
arbitrator) has been selected as provided for above, then, as soon thereafter
as practicable but in any case within 20 days, the arbitrator shall make his
determination of which of the two Estimates most closely reflects the
Prevailing Market rate and such Estimate shall be binding on both Landlord and
Tenant as the Base Rent rate for the Premises. 
If the arbitrator believes that expert advice would materially assist
him, he may retain one or more qualified persons to provide such expert
advice.  The parties shall share equally
in the costs of the arbitrator and of any experts retained by the
arbitrator.  Any fees of any appraiser,
counsel or experts engaged directly by Landlord or Tenant, however, shall be
borne by the party retaining such appraiser, counsel or expert.

3.                                      If
the Prevailing Market rate has not been determined by the commencement date of
the Renewal Term, Tenant shall pay Base Rent upon the terms and conditions in
effect during the last month of the initial Term for the Premises until such
time as the Prevailing Market rate has been determined.  Upon such determination, the Base Rent for
the Premises shall be retroactively adjusted to the commencement of the

 10
 

Renewal Term for the Premises.  If such adjustment results in an underpayment
of Base Rent by Tenant, Tenant shall pay Landlord the amount of such underpayment
within 30 days after the determination thereof. 
If such adjustment results in an overpayment of Base Rent by Tenant,
Landlord shall credit such overpayment against the next installment of Base
Rent due under the Lease and, to the extent necessary, any subsequent
installments, until the entire amount of such overpayment has been credited
against Base Rent.

E.                                      Renewal
Amendment.  If Tenant is entitled to
and properly exercises its Renewal Option, Landlord shall prepare an amendment
(the “Renewal Amendment”) to reflect changes
in the Base Rent, Term, Termination Date and other appropriate terms.  The Renewal Amendment shall be sent to Tenant
within a reasonable time after receipt of the Binding Notice and Tenant shall execute
and return the Renewal Amendment to Landlord within 15 days after Tenant’s
receipt of same, but, upon final determination of the Prevailing Market rate
applicable during the Renewal Term as described herein, an otherwise valid
exercise of the Renewal Option shall be fully effective whether or not the
Renewal Amendment is executed.

F.                                      Definition
of Prevailing Market.  For purposes
of this Renewal Option, “Prevailing Market”
shall mean the arms length fair market annual rental rate per rentable square
foot under renewal leases and amendments entered into on or about the date on
which the Prevailing Market is being determined hereunder for space comparable
to the Premises in the Building and office buildings comparable to the Building
in the Palo Alto, California area.  The
determination of Prevailing Market shall take into account any material
economic differences between the terms of this Lease and any comparison lease
or amendment, such as rent abatements, construction costs and other concessions
and the manner, if any, in which the landlord under any such lease is
reimbursed for operating expenses and taxes.  
The determination of Prevailing Market shall also take into
consideration any reasonably anticipated changes in the Prevailing Market rate
from the time such Prevailing Market rate is being determined and the time such
Prevailing Market rate will become effective under this Lease.

VII.                             Rights of First Offer.

A.                                   Grant
of Option; Conditions.  Tenant shall
have the one time right of first offer (each a “Right of
First Offer”) with respect to each of the following spaces, as more
particularly shown on Exhibits E-1 - E-8,
respectively  (each an “Offering
Space”):

1.                                      Approximately
41,504 rentable square feet in the 4005 Miranda Building known as Suite 100,
currently leased to Tibco pursuant to the Existing Lease (both as defined in
Recital B), which is scheduled to expire by its terms on December 31, 2010,
subject to one (1) renewal option for an additional five (5) year term;

2.                                      Approximately
5,988 rentable square feet in the 4005 Miranda Building known as Suite 150, the
current lease for which is scheduled to expire on December 31, 2009;

3.                                      Approximately
1,825 rentable square feet in the 4005 Miranda Building known as Suite 160, the
current lease for which is scheduled to expire on December 31, 2009;

4.                                      Approximately
4,513 rentable square feet in the 4005 Miranda Building known as Suite 175, the
current lease for which is scheduled to expire on April 30, 2007, subject to
one (1) renewal option for an additional one (1) year term;

5.                                      Approximately
24,541 rentable square feet in the 4009 Miranda Building known as Suite 100,
currently leased to Tibco pursuant to the Existing Lease, which is scheduled to
expire by its terms on December 31, 2010, subject to one (1) renewal option for
an additional five (5) year term;

6.                                      Approximately
15,826 rentable square feet in the 4009 Miranda Building

 11
 

known as Suite 200 (“4009/200”),
the current lease for which is scheduled to expire on October 30, 2010;

7.                                      Approximately
6,015 rentable square feet in the 4009 Miranda Building known as Suite 225 (“4009/225”), the current lease for which is scheduled to
expire on June 30, 2009, subject to one (1) renewal option for an additional
five (5) year term;

8.                                      Approximately
7,448 rentable square feet in the 4009 Miranda Building known as Suite 250 (“4009/250”), the current lease for which is scheduled to
expire on June 30, 2009, subject to one (1) renewal option for an additional
five (5) year term.

Each currently scheduled expiration date listed above
is referred to herein as a “Scheduled Expiration Date”;
provided that if an existing tenant in an Offering Space exercises a currently
existing renewal option listed above, the “Scheduled Expiration Date” for that
Offering Space shall instead mean the expiration date as so extended.

Tenant’s Right of First Offer shall be exercised with
respect to each Offering Space as follows: Landlord shall advise Tenant (the “Advice”), no later than 120 days prior to the Scheduled
Expiration Date for the applicable Offering Space, but prior to leasing such
Offering Space to a third party, of the size and location of the applicable
Offering Space and the terms under which Landlord is prepared to lease such
Offering Space to Tenant, which terms shall reflect the Prevailing Market
(hereinafter defined) rate for such Offering Space as reasonably determined by
Landlord.  Tenant may lease such Offering
Space in its entirety only, under such terms, by delivering written notice of
exercise to Landlord (the “Notice of Exercise”)
within 10 days after the date of the Advice, except that Tenant shall have no
such Right of First Offer and Landlord need not provide Tenant with an Advice,
if:

a.                                       Tenant
is in default under the Lease beyond any applicable cure periods at the time
that Landlord would otherwise deliver the Advice; or

b.                                      more
than fifty-five percent (55%) of the rentable square footage of the Premises is
sublet (other than pursuant to a Permitted Transfer, as defined in Section 24
of the Lease, as amended by this Fourth Amendment) at the time Landlord would
otherwise deliver the Advice; or

c.                                       the
Lease has been assigned (other than pursuant to a Permitted Transfer, as
defined in Section 24 of the Lease, as amended by this Fourth Amendment) prior
to the date Landlord would otherwise deliver the Advice; or

d.                                      the
Offering Space is not intended for the exclusive use of Tenant, and/or of any
transferee of a Permitted Transfer, during the Term.

B.                                     Terms
for Offering Space.

1.                                      The
term for the applicable Offering Space shall commence upon the commencement
date stated in the Advice and thereupon such Offering Space shall be considered
a part of the Premises, provided that all of the terms stated in the Advice,
including the term applicable to the Offering Space, shall govern Tenant’s
leasing of such Offering Space and only to the extent that they do not conflict
with the Advice, the terms and conditions of this Lease, as amended hereby,
shall apply to such Offering Space.

2.                                      Tenant
shall pay Base Rent and Additional Rent for the applicable Offering Space in
accordance with the terms and conditions of the Advice, which terms and
conditions shall reflect the Prevailing Market rate for such Offering Space as
determined in Landlord’s reasonable judgment.

3.                                      The
applicable Offering Space (including improvements and personalty, if any) shall
be accepted by Tenant in its “as-is” condition and as-built

 12
 

configuration existing on the earlier of the date
Tenant takes possession of such Offering Space or as of the date the term for
such Offering Space commences, unless the Advice specifies any work to be
performed by Landlord in such Offering Space, in which case Landlord shall
perform such work in such Offering Space. 
If Landlord is delayed delivering possession of the applicable Offering
Space due to the holdover or unlawful possession of such space by any party,
Landlord shall use reasonable efforts to obtain possession of the space, and
the commencement of the term for such Offering Space shall be postponed until
the date Landlord delivers possession of such Offering Space to Tenant free
from occupancy by any party.

C.                                     Termination
of Right of First Offer.  The rights
of Tenant hereunder with respect to the Offering Space shall terminate on the
earlier to occur of: (i) September 30, 2013; (ii) with respect to any
particular Offering Space, Tenant’s failure to exercise its Right of First
Offer with respect to such space within the 10 day period provided in
Section A above; and (iii) with respect to any particular Offering
Space, the date Landlord would have provided Tenant an Advice for such space if
Tenant had not been in violation of one or more of the conditions set forth in
Section A above.

D.                                    Offering
Amendment.  If Tenant exercises its
Right of First Offer, Landlord shall prepare an amendment (the “Offering Amendment”) adding the applicable Offering Space to
the Premises on the terms set forth in the Advice and reflecting the changes in
the Base Rent, Security Deposit, Rentable Square Footage of the Premises,
Tenant’s Pro Rata Share and/or Percentage Share and other appropriate
terms.  A copy of the Offering Amendment
shall be sent to Tenant within a reasonable time after Landlord’s receipt of
the Notice of Exercise executed by Tenant, and Tenant shall execute and return
the Offering Amendment to Landlord within 30 days thereafter, but an otherwise
valid exercise of the Right of First Offer shall be fully effective whether or
not the Offering Amendment is executed.

E.                                      Definition
of Prevailing Market.  For purposes
of this Right of First Offer provision, “Prevailing Market”
shall mean the annual rental rate per square foot for space comparable to the
Offering Space in the building in which the Offering Space is located and
office buildings comparable to the applicable building in the Palo Alto,
California area under leases and renewal and expansion amendments being entered
into at or about the time that Prevailing Market is being determined, giving
appropriate consideration to tenant concessions, brokerage commissions, tenant
improvement allowances, existing improvements in the space in question, and the
method of allocating operating expenses and taxes.

F.                                      Subordination.
Notwithstanding anything herein to the contrary, Tenant’s Right of First Offer
for 4009/200 is subject and subordinate to the right of first offer of the
current tenant of 4009/225 and 4009/250 as set forth in such tenant’s lease as
of the date of this Amendment.

G.                                     Early
Availability.  If any existing lease
set forth in Section A is terminated and Landlord regains possession of the
applicable Offering Space prior to the Scheduled Expiration Date for such
space, then notwithstanding Subsection A above, the period for Landlord’s
delivery of an Advice for such Offering Space shall instead be no later than 90
days following Landlord’s recovery of possession.

VIII.                         Other Miscellaneous Provisions.  Landlord
and Tenant agree that, effective as of the date of this Fourth Amendment
(unless different effective date(s) is/are specifically referenced in this
Section), the Lease shall be amended in the following additional respects:

A.                                   Deletions.  Each of
the following provisions is hereby deleted from the Lease in its entirety and
shall be of no further force or effect: 
Sections 2 (Option to Extend) (as confirmed in Paragraph 3 of the First
Amendment), 35.1 (Right of First Offer to Lease), Section 35.2 (Second Right of
Offer and Refusal for Sale), 37 (Move-In Bonus) and 51 (Conditions) of the
Original Lease.  Tenant acknowledges that
Landlord has no further obligations to Tenant under the Work Letter attached as
Exhibit C to the Lease to construct
Landlord Work or to disburse any portion of

 13
 

the
Tenant Improvements Allowance or Additional Allowance (all as defined therein),
and that the Work Letter has no application to the Must-Take Work Letter or
Initial Premises Work Letter except to the extent that Paragraph 13 of the Work
Letter is specifically incorporated therein.

B.                                     Definitions and General Lease
Modifications.  Landlord and Tenant acknowledge and agree that  for purposes of the Lease and for this Fourth Amendment,  the term “Complex” shall
mean the entire Foothill Research Center, including the “Complex” as defined in
the Original Lease, consisting of the 4001 Miranda Building, the 4005 Miranda
Building and the 4009 Miranda Building, and the 4015 Miranda Building and the
separate legal parcel on which it is located. 
Accordingly “Tenant’s Percentage”
for the Initial Premises is hereby amended from 33.33% to 28.0189%,
reflecting a total rentable square footage  for the
Complex of 192,120.  The term “Common Areas”
shall include the common areas serving the entire Complex, as defined in this
Paragraph B, including any Common Areas in the vicinity of the 4015 Miranda
Building that may not be shown on Exhibit A to
the Original Lease.  With respect only to
Multi-Tenant Buildings (as defined below), “Common Areas” also shall mean the
common areas inside the applicable building, such as lobbies, corridors and
common area restrooms. “Building” shall
mean the building in the Complex in which the applicable portion of the Premises
is located.  If Tenant leases any space
in the Complex in a building in which Tenant does not lease the entire
Building, pursuant to a Right of First Offer of otherwise, such Building shall
be referred to herein as a  “Multi-Tenant Building”. 
No representations by Landlord set forth in the Original Lease with
respect to the Initial Premises shall be deemed remade in connection with the
Must-Take Space or any Offering Space, unless specifically provided for herein.

C.                                     Landlord’s Address for Notices and Payment of Rent.
Notwithstanding anything to the contrary contained in the Lease, Landlord’s
address for notices and payment of Rent set forth in Section 4(d) of the
Original Lease is hereby deleted in its entirety and replaced with the
following:

	
  “Landlord:

  	
  With
  a copy to:

  
	
   

  	
   

  
	
  CA-Foothill Research Center
  Limited Partnership

  c/o Equity Office

  950 Tower Lane, Suite 950

  Foster City, California 94404

  Attention: Foothill Property Manager

  	
  Equity Office

  One Market Street

  Spear Tower, Suite 600

  San Francisco, CA 94105

  Attn: San Jose Regional Counsel

  

 

All payments of Rent shall be payable to the entity, and sent to the
address, Landlord designates from time to time in writing.”

D.                                 Property Expenses.

1.                                      Section
6 is hereby amended to provide that with respect to any Multi-Tenant Building,
in the case of Property Expenses for which Tenant is 100% responsible in the
Initial Premises but which are common to all tenants of the applicable
Multi-Tenant Building (for example, replacement of the roof membrane as
provided in Section I below, subject to the limitations provided in the Lease)
or costs arising out of Landlord’s repair and maintenance obligations
applicable only to Multi-Tenant Buildings (also as set forth in Section I
below), Tenant shall be responsible only for Tenant’s Pro Rata Share (as
defined in Paragraph 2 below) of such costs. 
Such costs shall be included in Property Expenses for the applicable
Building and Tenant shall pay Tenant’s Pro Rata Share of such Building-specific
expenses in accordance with the procedures set forth in Section 47 of the
Lease, as amended hereby.

2.                                      Tenant’s
“Pro Rata Share” of any particular
Multi-Tenant Building shall be a percentage calculated by dividing the rentable
square footage of the portion of the Premises located in such Building by the
total rentable square footage of the Building and multiplying the quotient by
100.

3.                                      With
respect to any Multi-Tenant Building, “Tenant’s Percentage”
shall be Tenant’s Pro Rata Share of the applicable Building’s pro rata share of

 14
 

the rentable square
footage of the Complex.  For example, the
4005 Miranda Building’s pro rata share of the Complex is 28.0189%, so if tenant
were to lease space (less than the entire Building) in the 4015 Miranda
Building, Tenant’s Percentage Share applicable to such space would be equal to
28.0189%, multiplied by Tenant’s Pro Rata Share of the 4005 Miranda Building,
divided by 100.

4.                                      With
respect to any Multi-Tenant Building, (a) clause (iii) of Section 6(a)(i) shall
not apply, and any reasonable costs so incurred by Landlord shall be included
in Real Property Taxes, and (b) Section 6(a)(ii) shall not apply.

5.                                      The
following is hereby added to the end of the 8th sentence of Section 6(b): “, as the same may
be amended from time to time.”

6.                                      With
respect to Multi-Tenant Buildings, (a) the “Common Areas” (and associated “Common
Area Expenses”, as set forth in Section 6(e)) shall include the Common Areas
within the building, (b) the provisions of Section 6(d) requiring that all
utilities to the Premises be separately metered shall not apply, and Landlord
shall provide utilities reasonably determined by Landlord to be standard for
the applicable building and shall include the cost thereof in Property
Expenses, and (c) the following shall be added to the end of the last sentence
of Section 6(f): “, except that Tenant shall pay Tenant’s Pro Rata Share of
100% of such expenses incurred with respect to Common Areas located in the
interior of an applicable Multi-Tenant Building.”

7.                                      The
following is added to the end of Section 6(g)(2) and Section 6(g)(11): “other
than deductibles under insurance carried by Landlord pursuant to this Lease”.

8.                                      The
following is added to the end of Section 6(g)(4): “unless such defects are the
result of work performed by Tenant or any previous tenant in the Premises.”

E.                                      Use.  The
7th sentence
of  Section 7 of the Lease shall not apply
to any portion of the Premises in a Multi-Tenant Building.  The 3rd sentence of Section 7 of the Original
Lease shall not apply to the Must-Take Space or any Offering Space.  Tenant acknowledges that the Ground Lease
imposes a fee on certain office uses in the Complex.  Landlord agrees to cooperate with Tenant in
obtaining the agreement of Ground Lessor that such fee shall not apply to
Tenant’s proposed office uses in the Must-Take Space (and, in the event that
Tenant leases any Offering Space, at the time Tenant seeks Ground Lessor’s
consent to such expansion, in such Offering Space); provided that if Ground
Lessor’s agreement is conditioned upon Tenant’s office uses being ancillary to
Tenant’s ongoing research and development uses the Complex, then if Ground
Lessor later imposes an office use fee due to Tenant’s failure to meet the
conditions set forth in Ground Lessor’s consent, Tenant shall be solely
responsible for payment of such use fee.

F.                                      Notices.  Without limiting the
provisions of Paragraph 8 of the Original Lease, notices may also be
sent by overnight or same day courier service to the parties at their
respective addresses set forth in the Lease, as amended hereby, and each notice
given in such manner shall be deemed to have been received on the earlier to
occur of actual delivery or the date on which delivery is refused, or, if
Tenant has vacated the Premises or any other notice address of Tenant without
providing a new notice address, 3 days after notice is deposited with a courier
service in the manner described above.

G.                                     Condition of Premises. 
The first two sentences of Section 11 of the Lease shall not apply to
the Must-Take Space or to any Offering Space.

H.                                    Alterations.

1.                                       The
5th sentence of Section 12.A is hereby amended to
replace “Fifteen Thousand and no/100ths Dollars” with “Twenty-Five Thousand and
no/100ths Dollars.”  The last sentence of
Section 12.A is hereby deleted.

 15

2.                                      With
respect to any Alterations made in a Multi-Tenant Building, the 5th sentence of Section 12.A shall not apply and
the following language shall apply in lieu thereof:

“However, Landlord’s
consent shall not be required for any Alteration that satisfies all of the
following criteria (a “Cosmetic Alteration”):  (a) is of a cosmetic nature such as
painting, wallpapering, hanging pictures and installing carpeting; (b) is
not visible from the exterior of the Premises or Building; (c) will not
affect the base building systems; and (d) does not require work to be
performed inside the walls or above the ceiling of the Premises. Cosmetic
Alterations shall be subject to all the other provisions of this
Section 12.A.”

3.                                      The
last sentence of Section 12.B of the Lease is hereby amended to replace “Additional
Deposit” with “Security Deposit or proceeds of the Letter of Credit”.

4.                                      As
provided in the Initial Premises Work Letter and the Must-Take Work Letter,
Section 12.B of the Lease shall apply generally to the Initial Premises
Alterations and the Must-Take Alterations even though the nature of such
improvements is not yet determined; provided that in determining categories of
such improvements for purposes of Section 12.B, Landlord shall not be required
to designate any improvements that are Nonremovable Tenant Improvements as “Leaseable
Nonremovable Tenant Improvements” (and accordingly will not be required to
waive its interest in or subordinate Landlord’s claim to any such improvements
or equipment for the benefit of Tenant’s lenders or equipment lessors) if such
improvements are paid for in whole or in part by the Initial Premises Allowance
or the Must-Take Allowance.

I.                                         Repairs and Maintenance.

1.                                      With
respect only to portions of the Premises located in a Multi-Tenant Building,
the following are added to Section 13(a): “(f) mechanical (including HVAC),
electrical, plumbing, elevators and fire/life safety systems serving the
Building in general (as opposed to exclusively serving the Premises), and (g)
Common Areas located inside the Building.”  
The cost of such additional items shall be Property Expenses chargeable
to Tenant in accordance with the provisions of the first three sentences of the
second paragraph of Section 13(a).

2.                                      The
portion of the 5th sentence of Section 13(a) prior to the
parenthetical is hereby deleted and replaced with “If at any time the roof
membrane of a Building in which a portion of the Premises is located requires
replacement in part or whole as a result of wear and tear”.

3.                                      The
4th, 5th and 6th sentences of the second paragraph of Section
13(a) shall not apply to any Multi-Tenant Building.

4.                                      With
respect to any portion of the Premises other than the Initial Premises, the 3rd
and 4th sentences of Section 13(b)(i) shall apply only to latent defects in the
original construction of the applicable building or to work actually performed
by Landlord (as opposed to work performed by Tenant or any previous tenant in
the applicable Premises).

5.                                      Section 13(b)(ii) shall not interpreted to
require Tenant to maintain or repair plumbing, electrical, HVAC or mechanical
systems that are Landlord’s maintenance responsibility pursuant to Section
VIII.I.1 above in any portion of the Premises located in a Multi-Tenant
Building.

J.                                        Damage to Tenant’s Property. 
The first sentence of Section 17 of the Lease is hereby amended to add
the words “or which are otherwise beyond the reasonable control of Landlord”
following “or any other cause whatsoever,” and to add the words “(unless such
defects are the result of work performed by Tenant or any previous tenant in
the Premises)” at the end of such sentence.

 16
 

K.                                    Liability Insurance.  The
6th sentence of Section 19 shall not apply to any
portion of the Premises located in a Multi-Tenant Building.

L.                                      Other Insurance to be Maintained by Tenant.  Section 20 of the Lease is hereby amended to
provide that Tenant’s sprinkler leakage endorsement shall include coverage for
earthquake sprinkler leakage.

M.                                 Damage or Destruction.

1.                                      In
the second sentence of 21(a) of the Lease, the word “Building” is hereby
replaced with “applicable Building or Buildings”.

2.                                      The
fourth sentence of Section 21(a) of the Lease is hereby deleted and replaced
with the following:

“If damage to the Premises in any particular
Building(s) exceeds eighty percent (80%) of the replacement value of the
portion of the Premises located in the applicable Building(s) (including
excavation and foundation), and the estimated time of reconstruction of the
portion of the Premises in the applicable Building(s) exceeds eighteen (18)
months, Landlord shall have the right to terminate the Lease with respect to
the portion of the Premises located in the applicable Building(s) upon written
notice to Tenant.  If Landlord elects to
terminate the Lease pursuant to the foregoing with respect to a portion, but
not all, of the Premises, then Tenant, within 30 days following Landlord’s
notice of such termination, may elect to terminate the Lease with respect to
the remainder of the Premises; provided that such termination right shall be
conditioned on Tenant’s determination, in its reasonable judgment and as set
forth in a representation in Tenant’s termination notice, that Tenant cannot
move its operations that were located in the affected Premises into another
portion of the Premises using commercially reasonable efforts for a total cost
to Tenant that is less than the cost Tenant would reasonably incur to move its
entire operation out of the Complex to another location.  Tenant’s termination of the Lease with
respect to the remaining Premises shall be effective as of the date specified
by Tenant in its notice, but no later than 90 days following Landlord’s notice
of termination. Notwithstanding the foregoing, if Tenant elects to terminate
the Lease with respect to the entire Premises pursuant to the foregoing,
Landlord shall have the option to withdraw its notice of termination with
respect to the portion of the Premises within 30 days following receipt of
Tenant’s notice, in which event the Lease shall continue in full force and effect
and Landlord shall reconstruct the damaged portion of the Premises in
accordance with this Section 21(a).”

3.                                      The
sixth sentence of Section 21(a) of the Lease is hereby deleted and replaced
with the following:

“If the estimated time of reconstruction of the
portion of the Premises located in any particular Building(s) (including for
these purposes the parking areas benefiting such portion of the Premises,
unless Landlord provides reasonable alternative parking to Tenant (e.g. valet
parking)) exceeds eighteen (18) months and the damage to the affected portion
of the Premises has a material adverse effect on Tenant’s operations in the
portion of the Premises located in the applicable Building(s), Tenant shall
have the right to terminate the Lease with respect to the portion of the
Premises located in the applicable Building(s) upon written notice to Landlord
delivered within 30 days following Landlord’s notice.  In addition, if Tenant has the right to
partially terminate the Lease pursuant to the foregoing, then Tenant may elect
to terminate the Lease with respect to the remainder of the Premises; provided
that such additional termination right shall be conditioned on Tenant’s
determination, in its reasonable judgment and as set forth in a representation
in Tenant’s termination notice, that Tenant cannot move its operations that
were located in the affected Premises into another portion of the Premises
using commercially reasonable efforts for a total cost to Tenant that is less
than the cost Tenant would reasonably incur to move its entire operation out of
the Complex to another location.  Tenant’s
termination of the Lease with

 17
 

respect to the remaining Premises shall be effective
as of the date specified by Tenant in its notice, but no later than 90 days following
Tenant’s notice.”

N.                                    Eminent Domain.

1.                                      For
purposes of Section 22(a), the phrase “substantially interfere with Tenant’s
use and occupancy thereof” shall mean that the loss of the use of the portion
taken shall materially and adversely affect Tenant’s operation of its business
within the entire Premises.  A partial
taking shall not be deemed to “substantially interfere with Tenant’s use and
occupancy thereof” if Tenant’s uses can be relocated within the overall
Premises in a commercially reasonable manner.

2.                                      In
Section 22(a):

(a)                                  The
following is added to the end of clause (ii) of the 3rd sentence: “, amortized over the initial Term”.

(a)                                  The
words “the fair market rental value of the Premises (as defined by paragraph
2(c)” in the 4th sentence are replaced by “the Prevailing
Market value (as defined in the Renewal Option set forth in the Fourth
Amendment)”.

(b)                                 Effective
as of the Extension Date, the words “assuming a CPI increase of five percent
(5%) per year” in the 4th sentence are hereby deleted.

(c)                                  The
provisions of clause (iv) of the 3rd sentence and the entirety of the 4th and 5th sentences shall not apply to any portion of
the Premises in a Multi-Tenant Building.

5.                                      The
following is added to the end of the first sentence of Section 22(d) of the
Lease: “or other reasonable alternative parking (e.g. valet parking).”

6.                                      Tenant
hereby waives any and all rights under and benefits of Section 1265.130 of
the California Code of Civil Procedure, or any similar or successor laws now or
hereinafter in effect, it being understood that Section 22 of the Lease shall
govern the rights and obligations of Landlord and Tenant in the event of
condemnation or eminent domain.

O.                                    Defaults and Remedies.

1.                                      The
first sentence of Section 23(a) is hereby deleted and replaced with the
following: “The abandonment of all of the Premises, or of any portion of the
Premises that constitutes all of the Premises located in any particular
Building.”  The word  “applicable” is added prior to the word “Premises”
in the next sentence.

2.                                      Section
23(c) is hereby amended to add “Tenant acknowledges that this provision is
intended to grant Landlord the remedy found in Section 1951.4 of the California
Civil Code.”

3.                                      The
following is hereby added to the end of Section 23(e): “Payments of Property
Expenses shall constitute “Rent” under the Lease.

4.                                      TENANT
HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL
CODE OF CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL
PROCEDURE OF CALIFORNIA AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM TIME
TO TIME IN EFFECT DURING THE TERM OF THE LEASE AS AMENDED HEREBY, PROVIDING
THAT TENANT SHALL HAVE ANY RIGHT TO REDEEM, REINSTATE OR RESTORE THE LEASE
FOLLOWING ITS TERMINATION BY REASON OF TENANT’S BREACH.  TENANT ALSO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN

 18
 

ANY LITIGATION ARISING OUT OF OR RELATING TO THE
LEASE, AS HEREBY AMENDED.

P.                                      Assignment and Subletting.

1.                                      [Intentionally Omitted]

2.                                      The fourth sentence of Section 24 of the Lease is
hereby deleted and replaced with:  “Landlord
shall respond to Tenant’s request for consent within 10 business days.  If Landlord fails to respond within such 10
business day period, then Tenant may deliver a second request to Landlord stating
that if Landlord does not respond within 5 days after the second request,
landlord’s consent shall be deemed given, and, if Landlord fails to respond
within 5 days after delivery of such second notice, Landlord’s consent shall be
deemed given.”

3.                                      The
fifth sentence of Section 24 is hereby deleted and replaced with the following:

“Tenant may assign this Lease to a successor to Tenant
by merger, consolidation or the purchase of substantially all of Tenant’s
assets, or assign this Lease or sublet all or a portion of the Premises to an
Affiliate (defined below), without the consent of Landlord, provided that all
of the following conditions are satisfied (a “Permitted
Transfer”):  (a) Tenant must
not be in Default; (b) Tenant must give Landlord written notice at least 15
Business Days before such Transfer; and (c) if such Transfer will result from a
merger or consolidation of Tenant with another entity, then the Credit
Requirement (defined below) must be satisfied. 
Tenant’s notice to Landlord shall include information and documentation
evidencing the Permitted Transfer and showing that each of the above conditions
has been satisfied.  If requested by
Landlord, Tenant’s successor shall sign a commercially reasonable form of
assumption agreement.  “Affiliate” shall mean an entity controlled by, controlling
or under common control with Tenant.  The
“Credit Requirement” shall be deemed satisfied if, as of the date immediately
preceding the date of the Transfer, the financial strength of the entity with
which Tenant is to merge or consolidate is not less than that of Tenant, as
determined (x) based on credit ratings of such entity and Tenant by both Moody’s
and Standard & Poor’s (or by either such agency alone, if applicable
ratings by the other agency do not exist), or (y) if such credit ratings do not
exist, then in accordance with Moody’s KMV RiskCalc (i.e., the on-line software
tool offered by Moody’s for analyzing credit risk) based on CFO-certified
financial statements for such entity and Tenant covering their last two fiscal
years ending before the Transfer.”

4.                                      The
proviso in the first sentence of the second full paragraph of Section 24 of the
Lease is hereby deleted.

Q.                                    [Intentionally
Omitted]

R.                                     Recording. At Landlord’s option, Tenant shall execute for
recording a short form memorandum of lease reflecting the deletion of Section
35 of the Lease.

S.                                      Tenant’s Remedy.  The
last clause of the first sentence of Section 45 of the Lease is hereby amended
to replace “Landlord nor its partners” with “Landlord nor its trustees,
members, principals, beneficiaries, partners, officers, directors, employees,
lenders or agents.”

T.                                     Payment of Property Expenses.

1.                                      Notwithstanding
anything in  Section 47 of the Lease to the
contrary, Landlord (a) with respect to any portion of the Premises located in a
in a Multi-Tenant Building shall, and (b) with respect to any portion of the
Premises located in a Building that is fully leased by Tenant may, at Landlord’s
option, include amounts representing a reasonable estimate of the average
monthly cost (determined by dividing the estimated total annual cost of each
such category by 12) of Real Property Taxes and

 19
 

assessments and insurance
premiums payable by Tenant in Landlord’s estimated average expenditures of
Property Expenses, for payment on a monthly basis in the manner provided in
Section 47 with respect to Property Expenses, in lieu of billing Tenant
separately for such items.

2.                                      The
following is added to the end of the first paragraph of Section 47: “, provided
that such audit is commenced within 12 months following Tenant’s receipt of
Landlord’s reconciliation for the previous 12-month period and thereafter
diligently prosecuted to completion.”

3.                                      Section
47 is hereby amended to reflect that Landlord’s annual reconciliation is prepared
on a calendar year basis, with Landlord’s annual reconciliation statement
delivered to Tenant as soon as practicable following the end of each calendar
year.  Landlord shall use reasonable
efforts to furnish the reconciliation statement on or before June 1 of the
calendar year immediately following the calendar year to which the statement
applies.

U.                                    Remediation Program.  With
respect to Section 48.B(i), clause (1),  Tenant hereby
acknowledges and agrees that there are no “additional Hazardous Materials discovered
on the Premises by Tenant during any baseline testing of the Premises conducted
in connection with the execution of [the Original Lease]” and that the
applicable parenthetical is therefore of no force and effect.

V.                                     Right to Cure Landlord Defaults.  Section 49 of the Lease shall not apply to
any space located in a Multi-Tenant Building. 
The last sentence of Section 49 is hereby modified to provide that
Landlord’s obligation to pay interest on costs incurred by
Tenant shall commence upon the 10th day following Tenant’s giving written
notice to Landlord together with reasonable supporting documentation of costs
incurred by Tenant.

W.                                Parking.  Effective as
of the Must-Take Effective Date, Tenant shall be entitled to an additional 92
non-reserved spaces in the parking facility, for a total
of 270 spaces.  In addition, Tenant shall
be entitled to convert up to 4 of Tenant’s spaces into reserved spaces, in
locations reasonably determined by Landlord in the vicinity of the Initial
Premises, at no charge during the Extended Term.  Tenant shall be entitled to additional
non-reserved spaces in connection with Tenant’s leasing of any of the Offering
Space at a ratio of 3.3 spaces per 1,000 rentable square feet of Offering Space
leased by Tenant.

X.                                    Environmental Disclosure. 
Tenant acknowledges that (i) the soil and/or groundwater underlying the
Foothill Research Center contain hazardous substances, including volatile
organic compounds, (ii) the Project is subject to certain orders by the
California Regional Water Quality Control Board, San Francisco Bay Region (the “Board”), and (iii) Tenant has reviewed, to its satisfaction,
an environmental site assessment report dated August 1993, prepared by EMCOM
Associates and entitled “Phase I Environmental Site Assessment”, receipt of
which is hereby acknowledged by Tenant, together with all publicly available
information regarding the environmental condition of such soil land
groundwater, and that Landlord has provided to Tenant an opportunity to review
all other materials in Landlord’s possession regarding the environmental
condition of the Foothill Research Center. 
Tenant acknowledges that the land underlying the Premises, as the same
may be expanded, may be subject to various covenants and restrictions may  imposed by the Board, which covenants and
restrictions may impose certain limitation on the use of the Premises, and
Tenant covenants to comply with all of the terms and conditions of any such
covenants and restrictions.  This
Paragraph X is not intended to modify Landlord’s and Tenant’s rights and
obligations set forth in Section 48 of the Lease.

Y.                                     Separation of Lease Document.  Landlord
reserves the right, in Landlord’s sole discretion, to subdivide the legal
parcel containing the 4001 Building, the 4005 Building and the 4009 Building
into one or more separate legal parcels, and to separately sell or finance any
one or more of the four Buildings. In the event of a subdivision after the date
of this Fourth Amendment, or in the event that Landlord elects to market for
sale or to finance one or more of the Buildings separately from other Buildings
in the Complex, then Tenant, upon written

 20
 

request from Landlord,
shall enter into new and separate lease agreements applicable to the portions
of the Premises located in the applicable Building(s) on the same terms and
conditions set forth in the Lease, as amended hereby, with appropriate
modifications to reflect the square footage of each respective portion of the
Premises and the location of each respective portion of the Premises covered by
such lease, conditioned upon Landlord paying to Tenant an amount equal to the
reasonable attorney’s fees incurred by Tenant in connection with review and
negotiation of such documentation and the reasonable costs of having the Letter
of Credit re-issued so that it is allocated appropriately; provided that
Landlord shall not be responsible for any attorneys’ fees incurred by Tenant in
connection with preparation of an Arbitration Notice or in connection with any
arbitration procedure. The draft lease(s) shall allocate any then remaining
cash security deposit and/or Letter of Credit between the resulting leases on a
pro rata basis based on relative square footage. Tenant’s rights and
obligations under the Lease with respect to the Containment Facility shall be
included only in the lease document governing the Initial Premises. The
separate leases shall be prepared and executed in accordance with the following
procedure:

1.                                      Landlord
shall deliver initial draft leases to Tenant, and Tenant shall review and
provide any reasonable comments thereon pertaining to whether the draft leases
are Accurate (as defined below) within 30 days following Tenant’s receipt of
such drafts by Landlord. Landlord shall promptly revise the draft leases to
accommodate such comments (the “Revised Drafts”).  Provided that the Revised Drafts are
consistent with the terms and provisions of the Lease, as then amended to date,
and this Paragraph 1 and do not significantly impair any of Tenant’s rights
under the Lease with respect to the portion of the Premises in the applicable
Buildings (for purposes of this Section Y, are “Accurate”),
Tenant shall execute the Revised Drafts no later than 15 days following
Landlord’s delivery thereof to Tenant (the “Revised
Draft  Execution Date”).  If Tenant reasonably and in good faith
determines that the Revised Drafts are not fully Accurate, Tenant may deliver a
notice (“Negotiation Notice”) to Landlord no
later than the Revised Draft Execution Date, which Negotiation Notice shall set
forth in reasonable detail the provisions of the Revised Drafts that Tenant
believes are not Accurate.  If Tenant
fails to deliver a Negotiation Notice that meets the requirements of this
Paragraph 1 by the Revised Draft Execution Date, Tenant shall be deemed to have
accepted the Revised Drafts as Accurate. 
Promptly following a Negotiation Notice, Landlord and Tenant shall
negotiate reasonably and in good faith to resolve any specific disputes set
forth in Tenant’s Negotiation Notice, and Landlord shall promptly revise the
Revised Drafts to reflect any such agreements (“Negotiated
Drafts”).

2.                                      Provided
that the Negotiated Drafts are Accurate, Tenant shall execute the Negotiated
Drafts no later than 15 days following Landlord’s delivery thereof to Tenant
(the “Negotiated Draft  Execution
Date”).  If Tenant reasonably
and in good faith determines that the Negotiated Drafts are not fully Accurate,
Tenant may deliver a notice (“Lease Arbitration Notice”)
to Landlord no later than the Negotiated Draft Execution Date, which Lease
Arbitration Notice shall set forth in reasonable detail the provisions of the
Negotiated Drafts that Tenant believes are not Accurate.  If Tenant fails to deliver a Lease
Arbitration Notice that meets the requirements of this Paragraph 2 by the
Negotiated Draft Execution Date, Tenant shall be deemed to have accepted the
Negotiated Drafts as Accurate.  Upon
receipt of a Lease Arbitration Notice, Landlord shall submit a response to
Tenant describing Landlord’s position on each item identified in Tenant’s Lease
Arbitration Notice (“Landlord’s Response”).

3.                                      Within
15 days following a Lease Arbitration Notice, Landlord and Tenant each shall
select as an arbitrator an attorney licensed in California with at least 10
years experience in commercial leasing practice in the Santa Clara County area,
provided that such attorney and any firm with which such attorney is associated
does not then represent either party and has not represented either party in at
least 5 years (a “Qualified Arbitrator”),
and the parties shall negotiate reasonably and in good faith to mutually agree
on a third Qualified Arbitrator. If Landlord and Tenant are unable to agree
within such 15 day period on a third Qualified Arbitrator (or if either

 21
 

party fails to timely
select its own Qualified Arbitrator), then the Qualified Arbitrator(s)
previously selected shall select a third (or second and third, if one party
failed to select a Qualified Arbitrator) to complete the arbitration panel (the
“Panel”) of three (3) Qualified
Arbitrators.

4.                                      Promptly
following selection of the Panel, the Panel shall review the Lease, as then
amended to date, the Negotiated Drafts, Tenant’s Arbitration Notice and
Landlord’s Response. The Panel shall not have the power to order further
discovery.  If the entire Panel
determines that it would be helpful to meet with the parties to discuss their
positions on the issues, upon reasonable notice the parties shall make
themselves available at the time requested by the Panel or shall forfeit the
right to so appear.  Within 45 days after
selection, the Panel shall issue a written opinion on each item set forth in
Tenant’s Lease Arbitration Notice, which opinion shall approve Tenant’s
proposed language as Accurate, approve Landlord’s proposed language as
Accurate, or provide alternate language approved by the Panel as Accurate, for
each such issue. If the Panel does not unanimously agree on any particular
item, the majority of the Panel members shall prevail. The decisions of the
Panel shall be final and binding on both parties and may be entered as judgment
on the issue in any court having jurisdiction over such dispute.

5.                                      Following
the Panel’s decision, Landlord shall promptly incorporate the Panel’s
determinations into the Negotiated Drafts and circulate “Final Drafts”
to Tenant for execution.  Provided that
the Final Drafts accurately incorporate the Panel’s decisions, such Final
Drafts shall be deemed Accurate and Tenant shall execute such Final Drafts
within 10 days following receipt thereof. 
Landlord and Tenant may refer any disputes over whether the Final Drafts
accurately reflect the Panel’s decision to the Panel for a prompt determination
(which shall be made by majority of the Panel if the Panel is not unanimous).

6.                                      Landlord
and Tenant shall each be responsible for fifty percent (50%) of the costs of
the arbitration, including the fees of the Qualified Arbitrators.  Each party shall pay its own attorneys’ fees
in connection with Tenant’s Lease Arbitration Notice, Landlord’s Response and
the arbitration procedure.

7.                                      Tenant’s
failure to execute one or more leases that are deemed to be Accurate pursuant
to the foregoing procedures within the time periods set forth therein shall be
subject to a cure period of 10 days following written notice from Landlord. If
Tenant fails to cure its noncompliance with this provision within such 10 day
cure period, such failure shall be an incurable default under the Lease,
without any further notice or cure period, and Tenant shall be liable for any
and all damages that Landlord may suffer as a result of Tenant’s failure.

Z.                                     Stanford Consent.   The effectiveness of this
Fourth Amendment and Landlord’s and Tenant’s rights and obligations hereunder
are conditioned upon the receipt of Stanford’s consent to this Fourth Amendment
on terms and conditions acceptable to the parties hereto and by Stanford and,
if required by Stanford, the execution of a nondisturbance and recognition
agreement between Stanford and Tenant. If Landlord and Tenant have not obtained
such consent by the date which is sixty (60) days after the mutual execution
and delivery of this Fourth Amendment by the parties, either party may
terminate this Fourth Amendment by written notice to the other party, effective
as of the date of receipt of such notice, provided that such notice is received
by the other party prior to Landlord and Tenant obtaining such consent.  Landlord shall have no obligation to disburse
any portion of any allowance provided for in this Fourth Amendment until the
required consent and agreement have been obtained.

X.                                    Miscellaneous.

A.                                   This Fourth Amendment and Exhibits A
through E attached hereto, which are hereby
incorporated by reference, set forth the entire agreement between the parties
with respect to the matters set forth herein. 
There have been no additional oral or written representations or
agreements.  Under no circumstances shall

 22
 

Tenant be entitled to any Rent
abatement, improvement allowance, leasehold improvements, or other work to the
Premises, or any similar economic incentives that may have been provided Tenant
in connection with entering into the Lease, unless specifically set forth in
this Fourth Amendment.

B.                                     Except as herein modified or amended, the
provisions, conditions and terms of the Lease shall remain unchanged and in
full force and effect.

C.                                     In the case of any inconsistency between the
provisions of the Lease and this Fourth Amendment, the provisions of this
Fourth Amendment shall govern and control.

D.                                    Submission of this Fourth Amendment by Landlord
is not an offer to enter into this Fourth Amendment but rather is a
solicitation for such an offer by Tenant. 
Landlord shall not be bound by this Fourth Amendment until Landlord has
executed and delivered the same to Tenant.

E.                                      The capitalized terms used in this Fourth Amendment
shall have the same definitions as set forth in the Lease to the extent that
such capitalized terms are defined therein and not redefined in this Fourth
Amendment.

F.                                      Tenant hereby represents to Landlord that Tenant
has dealt with no broker in connection with this Fourth Amendment other than
CRESA Partners (“Tenant’s Broker”).  Tenant agrees to indemnify and hold Landlord,
its trustees, members, principals, beneficiaries, partners, officers,
directors, employees, mortgagee(s) and agents, and the respective principals
and members of any such agents harmless from all claims of any brokers other
than Tenant’s Broker claiming to have represented Tenant in connection with
this Fourth Amendment, and from all claims of Tenant’s Broker for a commission
in connection with this transaction other than with respect to the Must-Take
Space, as provided below.  Landlord
agrees to pay a commission to Tenant’s Broker pursuant to the terms of a
separate agreement.  Landlord agrees to
indemnify and hold Tenant, its trustees, members, principals, beneficiaries,
partners, officers, directors, employees, and agents, and the respective
principals and members of any such agents harmless from all claims of any
brokers claiming to have represented Landlord in connection with this Fourth
Amendment.

Equity Office Properties
Management Corp. (“EOPMC”) is an
affiliate of Landlord and represents only the Landlord in this
transaction.  Any assistance  rendered 
by  any agent or employee of EOPMC
in connection with this Fourth Amendment or any subsequent amendment or
modification hereto has been or will 
be  made  as  an  accommodation to Tenant solely in furtherance
of consummating  the  transaction 
on behalf of Landlord, and not as agent for Tenant.

G.                                     Each party hereto represents that each signatory
of this Fourth Amendment signing on its behalf has the authority to execute and
deliver the same on behalf of the party hereto for which such signatory is
acting.

H.                                    Tenant agrees that neither Tenant nor its agents
or any other parties acting on behalf of Tenant shall disclose any matters set
forth in this Fourth Amendment or disseminate or distribute any information
concerning the terms, details or conditions hereof to any person, firm or
entity without obtaining the express written consent of Landlord or as required
by law.

[SIGNATURES ARE ON FOLLOWING
PAGE]

 23
 

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

	
  

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CA-FOOTHILL RESEARCH CENTER LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  EOM GP, L.L.C., a Delaware limited liability
  company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Equity Office Management, L.L.C., a Delaware limited
  liability company, its non-member manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ KENNETH J. CHURICH

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Kenneth J. Churich

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President Leasing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AFFYMAX, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ ARLENE M. MORRIS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Arlene M. Morris

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FEIN:

  	
   

  	
   

  
									

 

 24
 

EXHIBIT A

OUTLINE AND LOCATION OF MUST-TAKE SPACE

 25
 

EXHIBIT B

MUST-TAKE
WORK LETTER

As
used in this Work Letter, the “Premises” shall
be deemed to mean the Must-Take Space, as defined in the Fourth Amendment to
which this Work Letter is attached.

I.                                         Alterations
and Allowance.

A.                                   Tenant,
following the Must-Take Effective Date (as defined in the Fourth Amendment),
shall have the right to perform alterations and improvements in the Premises
(the “Must-Take Alterations”).  Notwithstanding the foregoing, Tenant and its
contractors shall not have the right to perform Must-Take Alterations in the
Premises unless and until Tenant has complied with all of the terms and
conditions of Section 12 of the Lease, including, without limitation, approval
by Landlord of the final plans for the Must-Take Alterations and the
contractors to be retained by Tenant to perform such Must-Take Alterations.
Tenant shall be responsible for all elements of the design of Tenant’s plans
(including, without limitation, compliance with law, functionality of design,
the structural integrity of the design, the configuration of the premises and
the placement of Tenant’s furniture, appliances and equipment), and Landlord’s
approval of Tenant’s plans shall in no event relieve Tenant of the
responsibility for such design.  Landlord’s
approval of the contractors to perform the Must-Take Alterations shall not be
unreasonably withheld.  The parties agree
that Landlord’s approval of the general contractor to perform the Must-Take
Alterations shall not be considered to be unreasonably withheld if any such
general contractor (i) does not have trade references reasonably
acceptable to Landlord, (ii) does not maintain insurance as required
pursuant to the terms of this Lease, (iii) does not have the ability to be
bonded for the work in an amount of no less than 150% of the total estimated
cost of the Must-Take Alterations, (iv) does not provide current financial
statements reasonably acceptable to Landlord, or (v) is not licensed as a
contractor in the state/municipality in which the Premises is located.  Tenant acknowledges the foregoing is not
intended to be an exclusive list of the reasons why Landlord may reasonably
withhold its consent to a general contractor.

B.                                     Provided
Tenant is not in default, Landlord agrees to
contribute the sum of $336,930.00
(the “Must-Take Allowance”) toward the cost
of performing the Must-Take Alterations in preparation of Tenant’s occupancy of
the Premises.  The Must-Take Allowance
may only be used for the cost of preparing design and construction documents
and mechanical and electrical plans for the Must-Take Alterations and for  hard costs in connection with the
Must-Take Alterations.  The Must-Take
Allowance, less a 10% retainage (which retainage shall be payable as part of
the final draw), shall be paid to Tenant or, at Landlord’s option, to the order
of the general contractor that performs the Must-Take Alterations, in periodic
disbursements within 30 days after receipt of the following documentation:
(i) an application for payment and sworn statement of contractor
substantially in the form of AIA Document G-702 covering all work for which
disbursement is to be made to a date specified therein; (ii) a
certification from an AIA architect substantially in the form of the Architect’s
Certificate for Payment which is located on AIA Document G702, Application and
Certificate of Payment; (iii) Contractor’s, subcontractor’s and material
supplier’s waivers of liens which shall cover all Must-Take Alterations for
which disbursement is being requested and all other statements and forms
required for compliance with the mechanics’ lien laws of the state in which the
Premises is located, together with all such invoices, contracts, or other supporting
data as Landlord or Landlord’s mortgagee, if any, may reasonably require;
(iv) a cost breakdown for each trade or subcontractor performing the
Must-Take Alterations; (v) plans and specifications for the Must-Take
Alterations, together with a certificate from an AIA architect that such plans
and specifications comply in all material respects with all laws affecting the
4015 Building, the Complex and the Premises; (vi) copies of all
construction contracts for the Must-Take Alterations, together with copies of
all change orders, if any; and (vii) a request to disburse from Tenant
containing an approval by Tenant of the work done and a good faith estimate of
the cost to complete the Must-Take Alterations. 
Upon completion of the Must-Take Alterations, and prior to final
disbursement of the Must-Take Allowance, Tenant shall furnish Landlord
with:  (1) general contractor and
architect’s completion affidavits, (2) full and final waivers of lien,
(3) receipted bills covering all labor and materials expended and used,
(4) as-built plans of the Must-

 26
 

Take Alterations, and (5) the certification
of Tenant and its architect that the Must-Take Alterations have been installed
in a good and workmanlike manner in accordance with the approved plans, and in
accordance with applicable laws, codes and ordinances.  In no event shall Landlord be required to
disburse the Must-Take Allowance more than one time per month.  If the Must-Take Alterations exceed the
Must-Take Allowance, Tenant shall be entitled to the Must-Take Allowance in
accordance with the terms hereof, but each individual disbursement of the
Must-Take Allowance shall be disbursed in the proportion that the Must-Take
Allowance bears to the total cost for the Must-Take Alterations, less the 10%
retainage referenced above. 
Notwithstanding anything herein to the contrary, Landlord shall not be
obligated to disburse any portion of the Must-Take Allowance during the
continuance of an uncured default under the Lease, and Landlord’s obligation to
disburse shall only resume when and if such default is cured.

C.                                     In no event shall the Must-Take Allowance be used
for the purchase of equipment, furniture or other items of personal property of
Tenant.  If Tenant does not submit a
request for payment of the entire Must-Take Allowance to Landlord in accordance
with the provisions contained in this Work Letter by December 31, 2011, any
unused amount shall accrue to the sole benefit of Landlord, it being understood
that Tenant shall not be entitled to any credit, abatement or other concession
in connection therewith. Tenant shall be responsible for all applicable state
sales or use taxes, if any, payable in connection with the Must-Take
Alterations and/or Must-Take Allowance.  Landlord shall be entitled to
deduct from the Must-Take Allowance a construction management fee for Landlord’s
oversight of the Must-Take Alterations in an amount equal to 3% of the total
cost of the Must-Take Alterations.

D.                                    Tenant agrees to accept the Premises in its “as-is”
condition and configuration, it being agreed that Landlord shall not be
required to perform any work or, except as provided above with respect to the
Allowance, incur any costs in connection with the construction or demolition of
any improvements in the Premises.

E.                                      This Work Letter shall not be deemed applicable to
any additional space added to the Premises at any time or from time to time,
whether by any options under the Lease or otherwise, or to any portion of the
Initial Premises or any additions to the Premises in the event of a renewal or
extension of the Extended Term of the Lease, whether by any options under the
Lease or otherwise, unless expressly so provided in the Lease or any amendment
or supplement to the Lease.

F.                                      Section 13 of the Work Letter attached as Exhibit
C to the Original Lease is incorporated herein by this reference with respect
to the Must-Take Alterations.  The
Must-Take Alterations shall be “Tenant Improvements” under the Lease, including
for purposes of Section 12.B and Exhibit E of
the Original Lease.  No other provisions
of the original Work Letter shall apply to the Must-Take Alterations, unless
specifically set forth in this Paragraph F.

 27
 

EXHIBIT C

INITIAL
PREMISES WORK LETTER

As
used in this Work Letter, the “Premises” shall
be deemed to mean the Initial Premises, as defined in the Fourth Amendment to
which this Work Letter is attached.

I.                                         Alterations
and Allowance.

A.                                   Tenant,
following the full execution of the Fourth Amendment and Landlord’s receipt of
the Letter of Credit required thereby, shall have the right to perform
alterations and improvements in the Premises (the “Initial
Premises Alterations”). 
Notwithstanding the foregoing, Tenant and its contractors shall not have
the right to perform Initial Premises Alterations in the Premises unless and
until Tenant has complied with all of the terms and conditions of Section 12 of
the Lease, including, without limitation, approval by Landlord of the final
plans for the Initial Premises Alterations and the contractors to be retained
by Tenant to perform such Initial Premises Alterations. Tenant shall be
responsible for all elements of the design of Tenant’s plans (including,
without limitation, compliance with law, functionality of design, the
structural integrity of the design, the configuration of the premises and the
placement of Tenant’s furniture, appliances and equipment), and Landlord’s
approval of Tenant’s plans shall in no event relieve Tenant of the
responsibility for such design.  Landlord’s
approval of the contractors to perform the Initial Premises Alterations shall
not be unreasonably withheld. The parties agree that Landlord’s approval of the
general contractor to perform the Initial Premises Alterations shall not be
considered to be unreasonably withheld if any such general contractor
(i) does not have trade references reasonably acceptable to Landlord,
(ii) does not maintain insurance as required pursuant to the terms of this
Lease, (iii) does not have the ability to be bonded for the work in an
amount of no less than 150% of the total estimated cost of the Initial Premises
Alterations, (iv) does not provide current financial statements reasonably
acceptable to Landlord, or (v) is not licensed as a contractor in the
state/municipality in which the Premises is located.  Tenant acknowledges the foregoing is not
intended to be an exclusive list of the reasons why Landlord may reasonably
withhold its consent to a general contractor.

B.                                     Provided
Tenant is not in default, Landlord agrees to
contribute the sum of $1,614,900.00
(the “Initial Premises Allowance”) toward the
cost of performing the Initial Premises Alterations. The Initial Premises
Allowance may only be used for the cost of preparing design and construction
documents and mechanical and electrical plans for the Initial Premises
Alterations and for  hard costs in connection
with the Initial Premises Alterations. 
The Initial Premises Allowance, less a 10% retainage (which retainage
shall be payable as part of the final draw), shall be paid to Tenant or, at
Landlord’s option, to the order of the general contractor that performs the
Initial Premises Alterations, in periodic disbursements within 30 days after
receipt of the following documentation: (i) an application for payment and
sworn statement of contractor substantially in the form of AIA Document G-702
covering all work for which disbursement is to be made to a date specified
therein; (ii) a certification from an AIA architect substantially in the
form of the Architect’s Certificate for Payment which is located on AIA
Document G702, Application and Certificate of Payment; (iii) Contractor’s,
subcontractor’s and material supplier’s waivers of liens which shall cover all
Initial Premises Alterations for which disbursement is being requested and all
other statements and forms required for compliance with the mechanics’ lien
laws of the state in which the Premises is located, together with all such
invoices, contracts, or other supporting data as Landlord or Landlord’s
mortgagee, if any, may reasonably require; (iv) a cost breakdown for each
trade or subcontractor performing the Initial Premises Alterations;
(v) plans and specifications for the Initial Premises Alterations,
together with a certificate from an AIA architect that such plans and
specifications comply in all material respects with all laws affecting the 4001
Miranda Building, the Complex and the Premises; (vi) copies of all
construction contracts for the Initial Premises Alterations, together with
copies of all change orders, if any; and (vii) a request to disburse from
Tenant containing an approval by Tenant of the work done and a good faith
estimate of the cost to complete the Initial Premises Alterations.  Upon completion of the Initial Premises
Alterations, and prior to final disbursement of the Initial Premises Allowance,
Tenant shall furnish Landlord with: 
(1) general contractor and architect’s completion affidavits,
(2) full and final waivers of lien,

 28
 

(3) receipted bills covering all labor and
materials expended and used, (4) as-built plans of the Initial Premises
Alterations, and (5) the certification of Tenant and its architect that
the Initial Premises Alterations have been installed in a good and workmanlike
manner in accordance with the approved plans, and in accordance with applicable
laws, codes and ordinances.  In no event
shall Landlord be required to disburse the Initial Premises Allowance more than
one time per month.  If the Initial
Premises Alterations exceed the Allowance, Tenant shall be entitled to the
Initial Premises Allowance in accordance with the terms hereof, but each
individual disbursement of the Initial Premises Allowance shall be disbursed in
the proportion that the Initial Premises Allowance bears to the total cost for
the Initial Premises Alterations, less the 10% retainage referenced above.
Notwithstanding anything herein to the contrary, Landlord shall not be
obligated to disburse any portion of the Initial Premises Allowance during the
continuance of an uncured default under the Lease, and Landlord’s obligation to
disburse shall only resume when and if such default is cured.

C.                                     Landlord and Tenant acknowledge that Tenant may
perform improvements in all or any portion of the Must-Take Space during Tenant’s
period of possession thereof pursuant to the Tibco Sublease (the “Sublease Alterations”), and that any such Sublease
Alterations shall be subject to the terms of the Existing Lease, the Tibco
Sublease and the Consent (all as defined in Recital B of the Fourth
Amendment).  Provided that Tenant
complies with all applicable requirements in connection therewith, Landlord
hereby agrees that Tenant may apply up to $250,000.00 of
the Initial Premises Allowance towards the cost of the Sublease
Alterations.  Such portion of the
Allowance shall be disbursed in the same manner and subject to the same
conditions as govern disbursements in connection with the Initial Premises
Alterations, as set forth in Paragraph B above and Paragraph D below.

D.                                    In no event shall the Initial Premises Allowance
be used for the purchase of equipment, furniture or other items of personal
property of Tenant.  If Tenant does not
submit a request for payment of the entire Initial Premises Allowance to
Landlord in accordance with the provisions contained in this Work Letter by
December 31, 2010, any unused amount shall accrue to the sole benefit of
Landlord, it being understood that Tenant shall not be entitled to any credit,
abatement or other concession in connection therewith. Tenant shall be
responsible for all applicable state sales or use taxes, if any, payable in
connection with the Initial Premises Alterations and/or Initial Premises
Allowance.  Landlord
shall be entitled to deduct from the Initial Premises Allowance a construction
management fee for Landlord’s oversight of the Initial Premises Alterations in
an amount equal to 3% of the total cost of the Initial Premises Alterations.

E.                                      Tenant agrees to accept the Premises in its “as-is”
condition and configuration for the Extended Term, it being agreed that
Landlord shall not be required to perform any work or, except as provided above
with respect to the Initial Premises Allowance, incur any costs in connection
with the construction or demolition of any improvements in the Premises.

F.                                      This Work Letter shall not be deemed applicable to
any additional space added to the Premises at any time or from time to time,
whether by any options under the Lease or otherwise, or to any portion of the
Must-Take Space (except as provided in Paragraph C above)  or
any additions to the Premises in the event of a renewal or extension of the
Extended Term of the Lease, whether by any options under the Lease or
otherwise, unless expressly so provided in the Lease or any amendment or
supplement to the Lease.

G.                                     Section 13 of the Work Letter attached as Exhibit
C to the Original Lease is incorporated herein by this reference with respect
to the Initial Premises Alterations. The Initial Premises Alterations shall be “Tenant
Improvements” under the Lease, including for purposes of Section 12.B and Exhibit E of the Original Lease.  No other provisions of the original Work
Letter shall apply to the Initial Premises Alterations, unless specifically set
forth in this Paragraph G.

 29
 

EXHIBIT D

FORM OF
LETTER OF CREDIT

[Name of Financial
Institution]

Irrevocable Standby

Letter of Credit

No.                                           

Issuance Date:                          

Expiration Date:                       

Applicant: Affymax, Inc.

Beneficiary

CA-Foothill Research Center Limited Partnership

c/o Equity Office

1740 Technology Drive, Suite 150

San Jose, California  95110

Attention: Foothill
Property Manager

Ladies/Gentlemen:

We hereby
establish our Irrevocable Standby Letter of Credit in your favor for the
account of the above referenced Applicant in the amount of                              
U.S. Dollars ($                            )
available for payment at sight by your draft drawn on us when accompanied by
the following documents:

1.                                       An
original copy  of this Irrevocable
Standby Letter of Credit.

2.                                       Beneficiary’s
dated statement purportedly signed by an authorized signatory or agent reading:
“This draw in the amount of                         
U.S. Dollars ($                 )
under your Irrevocable Standby Letter of Credit No.                                 
represents funds that we are entitled to draw pursuant to the terms of that
certain lease by and between CA-Foothill Research Center Limited Partnership, a
Delaware limited partnership, as landlord, and Affymax, Inc., a Delaware
corporation (as successor in interest to Affymax Research Institute, a
California corporation), as tenant, and/or any amendment to the lease or any
other agreement between such parties related to the lease.”

It is a condition
of this Irrevocable Standby Letter of Credit that it will be considered
automatically renewed for a one year period upon the expiration date set forth
above and upon each anniversary of such date, unless at least 60 days prior to
such expiration date or applicable anniversary thereof, we notify you in
writing, by certified mail return receipt requested or by recognized overnight
courier service, that we elect not to so renew this Irrevocable Standby Letter
of Credit.  A copy of any such notice
shall also be sent, in the same manner, to: 
Equity Office Properties Trust, 2 North Riverside Plaza, Suite 2100,
Chicago, Illinois 60606, Attention: Treasury Department.  In addition to the foregoing, we understand
and agree that you shall be entitled to draw upon this Irrevocable Standby
Letter of Credit in accordance with 1 and 2 above in the event that we elect
not to renew this Irrevocable Standby Letter of Credit and, in addition, you
provide us with a dated statement purportedly signed by an authorized signatory
or agent of Beneficiary stating that the Applicant has failed to provide you
with an acceptable substitute irrevocable standby letter of credit in
accordance with the terms of the above referenced lease.  We further acknowledge and agree that:  (a) upon receipt of the documentation
required herein, we will honor your draws against this Irrevocable Standby
Letter of Credit without inquiry into the accuracy of Beneficiary’s signed
statement and regardless of whether Applicant disputes the content of such
statement; (b) this Irrevocable Standby Letter of Credit shall permit
partial draws and, in the event you elect to draw upon less than the full
stated amount hereof, the stated amount of this Irrevocable Standby Letter of
Credit shall be automatically reduced by the amount of such partial draw; and
(c) you shall be entitled to transfer your interest in this Irrevocable Standby
Letter of Credit from time to time and more than one time without our approval
and without charge.  In the event of a
transfer, we reserve the right to require reasonable evidence of such transfer
as a condition to any draw hereunder.

This Irrevocable
Standby Letter of Credit is subject to the Uniform Customs and Practice

 30
 

for Documentary Credits
(1993 revision) ICC Publication No. 500.

We hereby engage
with you to honor drafts and documents drawn under and in compliance with the
terms of this Irrevocable Standby Letter of Credit.

All communications
to us with respect to this Irrevocable Standby Letter of Credit must be
addressed to our office located at                                                                                         
to the attention of                                                                .

	
  

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [name]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [title}

  	
   

  

 

 31

EXHIBIT E-1

OUTLINE AND LOCATION OF OFFERING SPACE

4005 Miranda, Suite 100

 32
 

EXHIBIT E-2

OUTLINE AND LOCATION OF OFFERING SPACE

4005 Miranda, Suite 150

 33
 

EXHIBIT E-3

OUTLINE AND LOCATION OF OFFERING SPACE

4005 Miranda, Suite 160

 34
 

EXHIBIT E-4

OUTLINE AND LOCATION OF OFFERING SPACE

4005 Miranda, Suite 175

 35
 

EXHIBIT E-5

OUTLINE AND LOCATION OF OFFERING SPACE

4009 Miranda, Suite 100

 36
 

EXHIBIT E-6

OUTLINE AND LOCATION OF OFFERING SPACE

4009 Miranda, Suite 200

 37
 

EXHIBIT E-7

OUTLINE AND LOCATION OF OFFERING SPACE

4009 Miranda, Suite 225

 38
 

EXHIBIT E-8

OUTLINE AND LOCATION OF OFFERING SPACE

4009 Miranda, Suite 250

 39

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