Document:

EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT TO 

MULTI-TENANT INDUSTRIAL/COMMERCIAL LEASE (NET) 

(Roselle Technology Park) 

THIS FIRST AMENDMENT TO MULTI-TENANT INDUSTRIAL/COMMERCIAL LEASE (NET) dated September 4, 2014 (this “First Amendment”)
is entered into by and between BRS-TUSTIN SAFEGUARD ASSOCIATES II, LLC, a Delaware limited liability company (“Lessor”), and PFENEX INC., a Delaware corporation (“Lessee”), with reference to the following: 

R E C I T A L S 

WHEREAS, Lessor and Lessee entered into that certain Multi-Tenant Industrial/Commercial Lease - Net dated June 22, 2010 (the
“Lease”), for the lease of certain premises (the “Original Premises”), consisting of approximately 22,833 rentable square feet, located at 10790 Roselle Street, San Diego, California (the “10790 Building”). All
capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Lease; and 

WHEREAS, Lessor and Lessee desire by this First Amendment to amend the Lease in order to, among other things, (a) extend the term
of the Lease for an additional three (3) year period; (b) expand the Original Premises leased by Lessee under the Lease to include certain premises (the “Additional Premises”), consisting of approximately 7,315 rentable square
feet, commonly known as Suite 102 located at 10788 Roselle Street, San Diego, California (the “10788 Building”); (c) provide for the Base Rent to be paid by Lessee for the Expanded Premises (as hereinafter defined) during the
remainder of the Original Term and the Extension Term (as hereinafter defined); and (d) further amend, modify and supplement the Lease as set forth herein. 

NOW, THEREFORE, in consideration of the Expanded Premises and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lessor and Lessee hereby agree as follows: 
 1. Recitals. The Recitals set forth above
are incorporated herein as though set forth in full herein. 
 2. Extension of Term. Lessor and Lessee acknowledge that
the Term of the Lease expires according to its terms on March 31, 2021. Notwithstanding anything to the contrary contained in the Lease, Lessor and Lessee agree that the Expiration Date shall be extended such that the Lease shall terminate on
March 31, 2024 (the “New Expiration Date”), unless sooner terminated in accordance with the terms of the Lease. The period from April 1, 2021 through the New Expiration Date shall be referred to herein as the “Extension
Term.” 
 3. Expansion; Description of Premises and the Building. Effective as of the date (the “Expansion
Date”) which is the later of (i) December 1, 2014, and (ii) the date that Lessor 

  

					
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delivers possession the Additional Premises to Lessee with the Substantial Completion of the Additional Premises Improvements (as such terms are defined in the Leasehold Improvement Exhibit
attached as Exhibit B to this First Amendment), which Expansion Date is anticipated to be December 1, 2014, and expiring on the New Expiration Date, unless earlier terminated in accordance with the terms of the Lease, Lessor shall lease to
Lessee, and Lessee shall lease from Lessor, the Additional Premises as outlined on Exhibit A attached hereto and incorporated herein by this reference, upon all of the terms and conditions of the Lease except as otherwise set forth herein.
Therefore, the Lease is hereby amended such that, from and after the Expansion Date, all references in the Lease to the “Premises” shall mean and refer to the entirety of the space in the Original Premises and the Additional Premises,
which is approximately thirty thousand one hundred forty eight (30,148) square feet (the entirety of such space is referred to herein as the “Expanded Premises”) and all references to the “Building” shall mean and refer to
the 10788 Building and the 10790 Building (except to the extent inconsistent with the provisions of the Lease or this First Amendment). Lessor may deliver to Lessee a factually correct Notice of Expansion Date in a form similar to that attached
hereto as Exhibit C, which Lessee shall execute and return to Lessor within five (5) business days of receipt thereof. Notwithstanding anything to the contrary contained herein, (i) if the Expansion Date has not occurred on or before
January 15, 2015 (the “Outside Expansion Date”), as such date shall be extended for Lessee Delays (as such term is defined in the Leasehold Improvement Exhibit attached as Exhibit B to this First Amendment), but not Force Majeure
Delays, then Lessee shall receive for each day past the Outside Expansion Date until the Expansion Date, a credit of one (1) day of monthly Base Rent relating to the Additional Premises for each day of such delay, which credit shall be applied
to the Base Rent first due from and after the Expansion Date and (ii) if the Expansion Date has not occurred on or before May 1, 2015, as such date shall be extended for Lessee Delays, but not Force Majeure Delays, then Lessee may
terminate this First Amendment by written notice to Lessor, whereupon the advance Rent specified in Section 10 below and the additional Security Deposit referenced in Section 11 below shall be promptly reimbursed to Lessee and this First
Amendment (including the extension of the term of the Lease with respect to the Original Premises) shall be null and void. 
 4. Base
Rent for the Additional Premises. In accordance with the terms of the Lease and in addition to paying all other amounts due under the Lease, including, without limitation, Lessee’s Share of Common Area Operating Expenses with
respect to the Expanded Premises in accordance with Section 6 below, Lessee shall pay monthly Base Rent for the Additional Premises commencing on the Expansion Date and continuing for the remainder of the Original Term and the Extension Term in
accordance with the following schedule: 
  

					
	 Period
	  	Monthly Base Rent	 
	 December 1, 2014 – November 30, 2015
	  	$	11,704.00	  
	 December 1, 2015 – November 30, 2016
	  	$	12,055.12	  
	 December 1, 2016 – November 30, 2017
	  	$	12,416.77	  
	 December 1, 2017 – November 30, 2018
	  	$	12,789.28	  
	 December 1, 2018 – November 30, 2019
	  	$	13,172.96	  
	 December 1, 2019 – November 30, 2020
	  	$	13,568.14	  
	 December 1, 2020 – November 30, 2021
	  	$	13,975.19	  
	 December 1, 2021 – November 30, 2022
	  	$	14,394.44	  
	 December 1, 2022 – November 30, 2023
	  	$	14,826.28	  
	 December 1, 2023 – March 31, 2024
	  	$	15,271.07	  

  

					
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 If the Expansion Date does not occur on December 1, 2014, the foregoing schedule of monthly
Base Rent shall be adjusted and documented in the form of the Notice of Expansion Date attached as Exhibit C. In such event, the monthly Base Rent for the Additional Premises shall commence on the Expansion Date and adjust on the first day of the
month in which each anniversary of the Expansion Date occurs. 
 5. Base Rent for the Original Premises During the Extension
Term. In accordance with the terms of the Lease and in addition to paying all other amounts due under the Lease, including, without limitation, Lessee’s Share of Common Area Operating Expenses with respect to the Expanded Premises in
accordance with Section 6 below, Lessee shall pay monthly Base Rent for the Original Premises during the Extension Term according to the following schedule: 
  

					
	 Extension Term
	  	Monthly Base Rent	 
	 April 1, 2021 – March 31, 2022
	  	$	36,822.77	  
	 April 1, 2022 – March 31, 2023
	  	$	37,927.45	  
	 April 1, 2023 – March 31, 2024
	  	$	39,065.27	  

 6. Lessee’s Share. Effective as of the Expansion Date and in addition to paying all other
amounts due under the Lease, including, without limitation, the Base Rent for the Additional Premises set forth in Section 4 above and the Base Rent for the Original Premises set forth in the Lease and Section 5 above, Lessee shall pay
Lessee’s Share of Common Area Operating Expenses for the Expanded Premises in accordance with Paragraph 4 of the Lease. For such purpose, effective as of the Expansion Date, “Lessee’s Share” set forth in Paragraph 1.7 of the
Lease shall be forty one and 91/100 percent (41.91%) as to the Industrial Center, one hundred and No/100 percent (100%) as to the 10790 Building, and twenty four and 12/100 percent (24.12%) as to the 10788 Building. 

7. Condition of the Expanded Premises. Lessee hereby acknowledges that it has had an opportunity to investigate and
inspect the condition of the Additional Premises and the suitability of same for Lessee’s purposes, and, except as otherwise provided in the Lease and this First Amendment, Lessee does hereby waive and disclaim any objection to, cause of action
based upon, or claim that its obligations hereunder should be reduced or limited because of the condition of the Additional Premises or the suitability of same for Lessee’s purposes. Except as otherwise provided in the Lease and this First
Amendment, Lessee acknowledges that neither Lessor nor any agent nor any employee of Lessor has made any representations or warranty with respect to the Additional Premises or with respect to the suitability of the Additional Premises for the
conduct of Lessee’s business and Lessee expressly warrants and represents that Lessee has relied solely on its own investigation and inspection of the Additional Premises in its decision to enter into this First Amendment and let the Additional
Premises in an “as is” condition. No promise of Lessor to alter, remodel, repair, or improve the Original Premises or 

  

					
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the Additional Premises and no representation, express or implied, respecting any matter or thing relating to the Original Premises or the Additional Premises has been made to Lessee by Lessor or
its broker or sales agent other than as may be contained herein or in the Lease. Notwithstanding the foregoing, Lessor shall construct certain improvements to the Additional Premises in accordance with the terms of the Leasehold Improvement Exhibit
attached as Exhibit B to this First Amendment. In addition, the Additional Premises shall be delivered to Lessee on the Expansion Date with the existing roof, heating, ventilation and air-conditioning, electrical, lighting and plumbing systems in
good working order and Lessor warrants that the such systems shall continue to operate in good working order for the period ending on the ninetieth (90th) day after the Expansion Date (the
“Warranty Period”), except to the extent such failure in any such systems to operate in good working order is caused by Lessee’s use or alterations to the Additional Premises or failure to properly maintain the systems as required by
the Lease, as amended by this First Amendment. If a non-compliance with the foregoing warranty exists at any time prior to the expiration of the Warranty Period, Lessor shall, except as otherwise provided in the Lease or this First Amendment,
promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, commence to rectify same at Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance on
or before the expiration of the Warranty Period, correction of that non-compliance shall be as set forth in the Lease, as modified by this First Amendment. Lessor hereby informs Lessee that the Expanded Premises have not undergone inspection by a
Certified Access Specialist (“CASp”). The foregoing verification is included in this First Amendment solely for the purpose of complying with California Civil Code Section 1938 and shall not in any manner affect Lessor’s and
Lessee’s respective responsibilities for compliance with construction-related accessibility standards as provided under the Lease. Lessee hereby waives any and all rights under and benefits of California Civil Code Section 1938 and
acknowledges that the 10788 Building, 10790 Building, the Original Premises, the Additional Premises or the Industrial Center have not undergone inspection by a CASp. 

8. Improvement Allowance for the Original Premises. Lessor shall provide to Lessee an improvement allowance to pay
Lessee’s costs and expenses (“Improvement Costs”) incurred by Lessee in design, permitting and construction of certain permanently affixed improvements (including, without limitation, costs of space planners, architects, and project
managers, and costs of painting and carpeting) to the Original Premises (the “Original Premises Improvements”) up to an aggregate maximum amount of One Hundred Fourteen Thousand One Hundred Sixty Five and No/100 Dollars ($114,165.00) (the
“Allowance”). Lessor shall pay portions of the Allowance to Lessee from time to time, but not more often than once a month, within thirty (30) days of Lessor’s receipt of invoices therefor and unconditional mechanics lien waivers
for all work evidenced by the current month’s invoices. Lessor shall be paid a construction management fee (the “Construction Management Fee”) equal to four percent (4%) of the amount of the Allowance disbursed by Lessor. The
Construction Management Fee shall be included in the Improvement Costs and Lessor shall deduct the Construction Management Fee from the Allowance. If Lessee has not requested payment of any portion of the Allowance by December 31, 2015, then
Lessee shall not be entitled to any further payments of, and shall not have any further right to, such portion of the Allowance. Except as otherwise expressly provided herein, the Original Premises Improvements shall be subject to all of the
applicable terms and provisions of the Lease, including, without limitation, all of the requirements for Alterations set 

  

					
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 forth in Paragraph 7.3 of the Lease; provided, however, that (i) Lessor shall not require Lessee to obtain
any lien or completion bond or similar security in connection with the Original Premises Improvements, (ii) Lessee shall not be required to pay or reimburse Lessor for any costs and expenses in connection with the Original Premises Improvements
other than the Construction Management Fee, and (iii) Lessee shall not be required to remove or restore any of the Original Premises Improvements that constitute typical office improvements or that are consistent with the existing improvements
in the Original Premises. Lessee will be responsible for paying all Improvement Costs in excess of the Allowance, if any. In no event shall Lessor be obligated to make disbursements pursuant to this Section in a total amount which exceeds the
Allowance. In the event that the actual Improvement Costs are less than the Allowance, Lessee shall not be entitled to any credit against rent for any unused portion of the Allowance. All improvements paid for with the Allowance shall be deemed
Lessor’s property under the terms of the Lease. Except as specifically set forth in this First Amendment and/or the Lease, Lessor shall not be obligated to provide or pay for any improvement work or services related to the improvement of the
Original Premises or the Expanded Premises. 
 9. Use of the Additional Premises. The Additional Premises shall be used
by Lessee solely for general office, research and development and warehousing and other related incidental uses, as may be permitted under existing zoning laws governing the Additional Premises and for no other use or purpose without Lessor’s
prior written consent. 
 10. Advance Rent. Concurrently with the execution and delivery of this First Amendment to
Lessor, Lessee shall deliver to Lessor a check in the amount of $ 14,008.23, which constitutes the first (1st) monthly installment of Base Rent and Lessee’s Share of estimated Common
Area Operating Expenses for the Additional Premises. 
 11. Security Deposit. Concurrently with the execution and
delivery of this First Amendment to Lessor, Lessee shall pay to Lessor the amount of Seventeen Thousand Five Hundred Seventy Five and 30/100 Dollars ($17,575.30) to increase the Security Deposit being held by Lessor under the Lease. Effective as of
the Extension Term Commencement Date, the Lease shall be amended by replacing all references to the existing amount of the Security Deposit with the amount of Fifty Three Thousand Three Hundred Twenty Five and 56/100 Dollars ($53,325.56), the
increased amount of the Security Deposit. 
 12. Utilities; HVAC; Maintenance of Additional Premises. 

a. Utilities. Lessee shall provide all necessary authorizations for Lessor to obtain any bills relating to utility usage at the
Expanded Premises directly from the utility provider, including delivering a signed and completed original of the authorization form attached as Exhibit D to this First Amendment to Lessor concurrently with Lessee’s execution and delivery of
this First Amendment to Lessor. If Lessor is unable to obtain the information from the utility provider, following Lessor’s request, Lessee shall provide copies of all utility bills within ten (10) days of Lessee’s receipt. If any
utilities or services are not separately metered to the Additional Premises or separately billed to the Additional Premises, Lessee shall pay to Lessor a reasonable proportion to be reasonably determined by Lessor of all such charges jointly metered
or billed with other premises in the 10788 Building, in the manner and within the time 

  

					
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periods set forth in Subparagraph 4.2 (d) of the Lease. Lessee shall have the right to inspect the invoices for such non-separately metered utilities. At Lessor’s option, Lessor may
maintain a telephone line or lines in Lessor’s name for a security alarm system and/or fire-life/safety system for the 10788 Building and the 10790 Building, the cost of which shall be included in Common Area Operating Expenses. 

b. HVAC. As part of the Additional Premises Improvements and as a condition precedent to the Expansion Date, Lessor shall cause the
HVAC systems serving the Additional Premises to be configured such that they exclusively serve the Additional Premises and that Lessee shall have exclusive control over the hours of operation of such HVAC systems. Lessee shall not be charged any
after-hours charges for operation of the HVAC after normal business hours (provided that Lessee shall pay all utility charges relating to such use). Notwithstanding anything to the contrary in the Lease, with respect to the Additional Premises and
the 10788 Building only, Lessor shall perform (and Lessee shall have no liability to perform) any maintenance, repair or replacements (including the obligation to maintain service contracts pursuant to Section 7.1(b) of the Lease) to the
heating, ventilating and air conditioning units serving the Premises or the Building. Any costs incurred by Lessor in connection with the prior sentence shall be included in Common Area Operating Expenses, subject to the provisions of
Section 7.1(d) of the Lease. 
 c. Maintenance of Additional Premises. Notwithstanding anything to the contrary contained
in the Lease, Lessee’s obligation under Paragraph 7.1(a) of the Lease to maintain all equipment or facilities specifically serving the Additional Premises shall be limited to those items located within the Additional Premises, but excluding any
items which are expressly the responsibility of Lessor under the Lease, as amended by this First Amendment 
 13. Lessor’s
Address for Notices and Payment of Rent. The address for notices to Lessor under the Lease is hereby amended as follows: 
  

			
	Notice Address:        	  	c/o Westcore Properties, LLC
		  	4435 Eastgate Mall, Suite 300
		  	San Diego, California 92121
		  	Attention: Leasing Manager

 The address for payment of rent to Lessor under the Lease is hereby amended as follows: 

Rent Address: See Rent Payment Instructions attached as Exhibit E. 

14. Estoppel. Lessee hereby certifies and acknowledges, that as of the date hereof (a) to Lessee’s current, actual
knowledge, Lessor is not in default in any respect under the Lease, (b) to Lessee’s current, actual knowledge, Lessee does not have any defenses to its obligations under the Lease, (c) Lessee has paid to Lessor a Security Deposit in the
amount of $35,750.26 under the Lease (subject to increase in accordance with Section 11 above), and (d) there are no offsets against rent payable under the Lease. Lessee acknowledges and agrees that: (i) the representations herein set
forth constitute a material consideration to Lessor in entering into this First Amendment; (ii) such representations are being made by Lessee for purposes of inducing 

  

					
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Lessor to enter into this First Amendment; and (iii) Lessor is relying on such representations in entering into this First Amendment. Lessor hereby certifies and acknowledges, that as of the
date hereof, to Lessor’s current, actual knowledge, Lessee is not in default in any respect under the Lease. 
 15.
Brokers. Lessee hereby represents and warrants to Lessor that Lessee has not entered into any agreement or taken any other action which might result in any obligation on the part of Lessor to pay any brokerage commission,
finder’s fee or other compensation with respect to this First Amendment, other than to Hughes Marino and Cassidy Turley (the “Brokers”), and Lessee agrees to indemnify and hold Lessor harmless from and against any losses, damages,
costs or expenses (including without limitation, attorneys’ fees) incurred by Lessor by reason of any breach or inaccuracy of such representation or warranty. Lessor shall pay any fees or commissions owed to the Brokers pursuant to a separate
written agreement. 
 16. Confidentiality. Lessor and Lessee agree that the covenants and provisions of this First
Amendment shall not be divulged to anyone not directly involved in the management, administration, ownership, lending against, sale or marketing or subleasing of the Premises, other than Lessee’s or Lessor’s counsel or leasing or
sub-leasing broker, accountants, financial advisors, lenders, investors, investment bankers, purchasers or any proposed assignee or sublessee, as required by law or in connection with any filing with the Securities and Exchange Commission or any
legal proceeding. 
 17. Ratification. Except as otherwise specifically herein amended, the Lease is and shall remain
in full force and effect according to the terms thereof. In the event of any conflict between the Lease and this First Amendment, this First Amendment shall control. 

18. Attorneys’ Fees. Should either party institute any action or proceeding to enforce or interpret this First
Amendment or any provision thereof, for damages by reason of any alleged breach of this First Amendment or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in any such action or proceeding shall be entitled to
receive from the other party all cost and expenses, including actual attorneys’ and other fees, reasonably incurred in good faith by the prevailing party in connection with such action or proceeding. The term “attorneys’ and other
fees” shall mean and include attorneys’ fees, accountants’ fees, and any and all consultants’ and other similar fees incurred in connection with the action or proceeding and preparations therefore. The term “action or
proceeding” shall mean and include actions, proceedings, suits, arbitrations, appeals and other similar proceedings. 
 19.
Submission. Submission of this First Amendment by Lessor to Lessee for examination and/or execution shall not in any manner bind Lessor and no obligations on Lessor shall arise under this First Amendment unless and until this First
Amendment is fully signed and delivered by Lessor and Lessee. 
 20. Counterparts. This First Amendment may be executed
in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 

  

					
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 21. Lender Approval. Lessor represents and warrants that it has obtained the
written approval of its lender to this First Amendment. 
 22. Signage. Lessor, at Lessor’s sole expense, shall provide
all building standard suite identification signage in the lobby of the 10788 Building for the Additional Premises. 
 23. Parking.
In addition to Lessee’s parking rights under the Lease with respect to the Original Premises, Lessee shall have the right to three (3) parking spaces per thousand rentable square feet of the Additional Premises, at no cost to Lessee.

 IN WITNESS WHEREOF, this First Amendment has been executed by the parties as of the date first referenced above. 

 

			
	“Lessor”
	
	BRS-TUSTIN SAFEGUARD ASSOCIATES II, LLC,
	a Delaware limited liability company
		
	By:	 	Westcore Investments I, LLC
		 	a Delaware limited liability company
		 	its Sole Member

  

							
		 	By:	 	Westcore Properties, LLC
		 		 	 a Delaware limited liability company

its Sole Member

				
		 		 	 By:
	 	 /s/ Donald Ankeny

		 		 	Name:	 	Donald Ankeny
		 		 	Title:	 	Authorized Signatory

  

			
	“Lessee”
	
	 PFENEX INC.,
 a Delaware
corporation

		
	By:	 	 /s/ Bertrand C. Liang

	Name:	 	Bertrand C. Liang
	Title:	 	CEO

  

					
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 EXHIBIT A 

SITE PLAN OF ADDITIONAL PREMISES 
  

 

  

					
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 EXHIBIT B 

LEASEHOLD IMPROVEMENT EXHIBIT 

(Lessor to Construct) 
 This
Leasehold Improvement Exhibit shall set forth the terms and conditions relating to the construction of the Leasehold Improvements in the Additional Premises. This Leasehold Improvement Exhibit is essentially organized chronologically and addresses
the issues of the construction of the Additional Premises, in sequence, as such issues will arise during the actual construction of the Additional Premises. All capitalized terms used but not defined herein shall have the meanings given such terms
in the Lease. 
 SECTION 1 

CONSTRUCTION DRAWINGS FOR THE ADDITIONAL PREMISES 

Lessor shall construct and/or install certain improvements in the Additional Premises (collectively, the “Additional Premises
Improvements”) using Building standard industrial materials pursuant to that those certain plans and specifications dated August 18, 2014 prepared by donald pittman design, inc. attached hereto as Schedule 1 (the “Approved
Plans”). The Additional Premises Improvements shall be constructed in good and workmanlike manner, free of defects and using new equipment and materials of good quality. Lessee acknowledges that certain existing materials and equipment will
remain in the Additional Premises, including the use of certain existing doors and light fixtures and several existing HVAC units serving the Additional Premises. If any governmental authority having jurisdiction over the Additional Premises
determines that, as of the Expansion Date, the Additional Premises were not in compliance with Applicable Laws in effect and being enforced prior to the Expansion Date, Lessor shall take such action, at Lessor’s expense, as may be reasonable or
appropriate to rectify the non-compliance, except to the extent such compliance is triggered by Lessee’s specific use of, or improvements to, the Additional Premises. Within ten (10) days of Lessee’s receipt of Building standard
samples for the paint, flooring and other finishes, Lessee shall make a selection in writing to Lessor. If Lessee fails to timely select such paint, flooring or other finishes within two (2) business days of Lessor’s notice to Lessee of
such failure, Lessee shall have no further right to make such selection and Lessor may choose the paint, flooring and other finishes in its sole and absolute discretion. Lessee shall make no changes or modifications to the Approved Plans or the
Additional Premises Improvements without the prior written consent of Lessor, which consent shall not be unreasonably withheld, but may be withheld at Lessor’s option if such change or modification would, in Lessor’s reasonable discretion:

 1.1 directly or indirectly delay the “Substantial Completion” of the Additional Premises Improvements as that term is defined
in Section 4 of this Leasehold Improvement Exhibit, unless Lessee agrees in writing that such delay constitutes a Lessee Delay, 
 1.2
increase the cost of designing or constructing the Additional Premises Improvements, unless Lessee agrees in writing to pay for such increase, 

  

					
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 1.3 require modification to any portion of the Building other than the Additional Premises, 

1.4 detrimentally affect any of the Building utilities, systems, or structure, or the value, use, or appearance of the Building or the
Industrial Center, 
 1.5 interfere with the operations of any lessees of the Industrial Center, 

1.6 increase the cost of operating the Building or the Industrial Center, or 

1.7 violate any agreement, law or code that affects the Building or binds Lessor, including, without limitation, this Lease. 

SECTION 2 
 OVER
ALLOWANCE AMOUNT 
 In the event that after Lessee’s execution of the First Amendment, any revisions, changes, or substitutions
shall be made to the Approved Plans or the Additional Premises Improvements, any additional costs which arise in connection with such revisions, changes or substitutions shall be specified in an approved written change order signed by Lessee and
paid by Lessee to Lessor immediately upon Lessor’s request. Notwithstanding any estimate, projection or statement which may be made by Lessor or any contractor, representative or agent of Lessor, Lessor shall not be deemed to guaranty the cost
of the design or construction of the Leasehold Improvements. 
 SECTION 3 

CONTRACTOR’S WARRANTIES AND GUARANTIES 

Lessor hereby assigns to Lessee on a non-exclusive basis all assignable warranties and guaranties, if any, by the contractor who constructs
the Additional Premises Improvements (the “Contractor”) relating to the Additional Premises Improvements, and, except as provided in this Section, Lessee hereby waives all claims against Lessor relating to, or arising out of the
construction of, the Additional Premises Improvements. Lessor shall require the Contractor to provide a warranty of not less than twelve (12) months with respect to the Additional Premises Improvements. Lessor agrees to repair and correct, or
cause to be repaired and corrected, any defect in the Additional Premises Improvements identified by Lessee to Lessor in writing within twelve (12) months after the Expansion Date. 

SECTION 4 
 COMPLETION OF
THE ADDITIONAL PREMISES IMPROVEMENTS 
 If there shall be a delay or there are delays in the Substantial Completion of the Additional
Premises Improvements or in the occurrence of any of the other conditions precedent to the Expansion Date beyond December 1, 2014 as a direct, indirect, partial, or total result of (collectively, “Lessee Delays”): 

  

					
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 4.1 Lessee’s failure to timely approve any matter requiring Lessee’s approval within
the time periods prescribed in this Exhibit; 
 4.2 A breach by Lessee of the terms of this Leasehold Improvement Exhibit or the Lease; 

4.3 Lessee’s request for changes in the Approved Plans; 

4.4 Lessee’s requirement for materials, components, finishes or improvements which are not identified in the Approved Plans and are not
available in a commercially reasonable time, or which are different from, or not included in, Lessor’s standard improvement package items for the Building; or 

4.5 Any other acts or omissions of Lessee, or its agents, or employees, provided that Lessee receives notice of such acts or omissions from
Lessor and fails to cure such delay within twenty-four hours after receipt of such notice; 
 Then, notwithstanding anything to the contrary
set forth in the Lease, the First Amendment or this Leasehold Improvement Exhibit and regardless of the actual date of the Substantial Completion of the Additional Premises Improvements, the Expansion Date shall be deemed to be the date the
Expansion Date would have occurred if no Lessee Delays had occurred. As used in the First Amendment and this Leasehold Improvement Exhibit, the term “Substantial Completion” shall mean that Lessor has completed the Additional
Premises Improvements substantially in accordance with this Leasehold Improvement Exhibit except for finishing details of construction, decoration, mechanical, and other adjustments and other items of the type commonly found on an architectural
“punch list” (“Punch List Items”), none of which materially interfere with Lessee’s use or occupancy of the Additional Premises for normal business operations. 

“Force Majeure Delay” shall mean any delay by Lessor in completing the Additional Premises Improvements by reason of any
strike, lockout, labor dispute, act of God, inability to obtain services, labor or materials or reasonable substitutes therefore, governmental action, governmental regulation, governmental control, delay in issuance of permits, civil commotion, fire
or other casualty, and other causes beyond the reasonable control of Lessor. The time for performance of any obligation of Lessor to construct the Additional Premises Improvements under this Leasehold Improvement Exhibit or the First Amendment shall
be extended by the period of any Force Majeure Delay. 
 SECTION 5 

PUNCH LIST PROCEDURE 

Within ten (10) business days after Lessor notifies Lessee of the Substantial Completion of the Additional Premises Improvements, Lessee
shall notify Lessor in writing of all Punch List Items. Any Punch List Items identified in such written notice delivered by Lessee within such period shall be corrected by Lessor within a reasonable time thereafter not to exceed sixty (60) days.
Punch List Items shall not include any damage caused in connection with Lessee’s move-in or early access to the Additional Premises pursuant to Section 6.1. 

  

					
		 	Page 3 of 5	 	
		 		 	Lessor’s Initials: DA
		 		 	Lessee’s Initials:     

 SECTION 6 

MISCELLANEOUS 
 6.1
Lessee’s Entry Into the Additional Premises Prior to Substantial Completion. Provided that Lessee and its agents do not interfere with Contractor’s work in the Building and the Additional Premises, Contractor shall allow
Lessee access to the Additional Premises prior to the Substantial Completion of the Additional Premises Improvements for the purpose of Lessee installing furniture, equipment, personal property or fixtures (including Lessee’s data and telephone
equipment) in the Additional Premises. Prior to Lessee’s entry into the Additional Premises as permitted by the terms of this Section 6.1, Lessee shall submit a schedule to Lessor and Contractor, for their approval, which schedule shall
detail the timing and purpose of Lessee’s entry. Any entry into the Additional Premises by Lessee, or any storage or installation of any property in the Additional Premises by Lessee prior to Substantial Completion of the Additional Premises
Improvements (if approved in writing in advance by Lessor) shall be at the sole risk of Lessee, including, but not limited to theft, bodily injury, vandalism or other damage. Lessee shall strictly comply with all requirements of Lessor and
Lessor’s contractor concerning Lessee’s entry into the Additional Premises before Substantial Completion of the Additional Premises Improvements. Lessee shall hold Lessor harmless from and indemnify, protect and defend Lessor against any
loss or damage to the Building or Additional Premises and against injury to any persons caused by Lessee’s actions pursuant to this Section 6.1. 

6.2 Lessee’s Representative. Lessee has designated Henry Talbot as its sole representative with respect to the matters set
forth in this Leasehold Improvement Exhibit, who, until further written notice to Lessor, shall have full authority and responsibility to act on behalf of the Lessee as required in this Leasehold Improvement Exhibit. Upon request from Lessor or its
representative, architect, contractor or engineer, Lessee’s representative shall supply such information, and issue such approvals as may be requested, to complete the design and construction of the Additional Premises Improvements. 

6.3 Lessor’s Representative. Following the mutual execution and delivery of this Lease, Lessor shall designate its sole
representatives with respect to the matters set forth in this Leasehold Improvement Exhibit, who, until further notice to Lessee, shall have full authority and responsibility to act on behalf of the Lessor as required in this Leasehold Improvement
Exhibit. 
 6.4 Time of the Essence in This Leasehold Improvement Exhibit. Unless otherwise indicated, all references herein to a
“number of days” shall mean and refer to calendar days. In all instances where Lessee is required to approve or deliver an item, if no written notice of approval is given or the item is not delivered within the stated time period, at
Lessor’s sole option, at the end of such period the item shall automatically be deemed approved or delivered by Lessee and the next succeeding time period shall commence. 

  
 Page 4 of 5 

					
		 		 	Lessor’s Initials: DA
		 		 	Lessee’s Initials:     

 6.5 Lessee’s Lease Default. Notwithstanding any provision to the contrary contained
in this Lease, if a Breach as described in Section 13.1 of the Lease, has occurred at any time on or before the Substantial Completion of the Additional Premises Improvements, then (i) in addition to all other rights and remedies granted
to Lessor pursuant to this Lease, Lessor shall have the right to cause Contractor to cease the construction of the Additional Premises Improvements (in which case, Lessee shall be responsible for any delay in the Substantial Completion of the
Additional Premises Improvements caused by such work stoppage), and (ii) all other obligations of Lessor under the terms of this Leasehold Improvement Exhibit shall be forgiven until such time as such default is cured. 

  

					
		 	Page 5 of 5	 	Lessor’s Initials: DA
		 		 	Lessee’s Initials:     

 SCHEDULE 1 TO LEASEHOLD IMPROVEMENT EXHIBIT 

APPROVED PLANS 
  

 

  

					
		 	1	 	Lessor’s Initials: DA
		 		 	Lessee’s Initials:     

 EXHIBIT C 

NOTICE OF EXPANSION DATE 
  

			
	To:	 	  

		 	  

		 	  

		 	  

  

	Re:	Multi-Tenant Industrial/Commercial Lease (Net) dated June 22, 2010 between BRS-TUSTIN SAFEGUARD ASSOCIATES II, LLC, a Delaware limited liability company (“Lessor”) and PFENEX INC., a Delaware corporation
(“Lessee”), as amended by that certain First Amendment to Multi-Tenant Industrial/Commercial Lease (Net) dated September 4, 2014 (the “First Amendment”), concerning 10788 Roselle Street, Suite 102, San Diego, California.

 Gentlemen: 
 In accordance with the First
Amendment, we wish to advise you and/or confirm as follows: 
 1. Substantial Completion of the Additional Premises Improvements has
occurred and the Expansion Date occurred on                     , 201     . 

2. Rent for the Additional Premises commenced to accrue on
                     and monthly Base Rent for the Additional Premises shall be paid in accordance with the following schedule: 

 

					
	 Period
	  	Monthly Base Rent	 
	             1, 201     –
            , 201    
	  	$	11,704.00	  
	             1, 201     –
            , 201    
	  	$	12,055.12	  
	             1, 201     –
            , 201    
	  	$	12,416.77	  
	             1, 201     –
            , 201    
	  	$	12,789.28	  
	             1, 201     –
            , 201    
	  	$	13,172.96	  
	             1, 201     –
            , 202    
	  	$	13,568.14	  
	             1, 202     –
            , 202    
	  	$	13,975.19	  
	             1, 202     –
            , 202    
	  	$	14,394.44	  
	             1, 202     –
            , 202    
	  	$	14,826.28	  
	             1, 202     –
            , 202    
	  	$	15,271.07	  

 3. If the Expansion Date is other than the first day of the month, the first billing will contain a pro rata
adjustment. Each billing thereafter shall be for the full amount of the monthly installment as provided for in the Lease. 
 [SIGNATURES
ON NEXT PAGE] 
  

  

					
		 	1	 	Lessor’s Initials:
		 		 	Lessee’s Initials:     

 “Lessor”: 

BRS-TUSTIN SAFEGUARD ASSOCIATES II, LLC, 
 a Delaware
limited liability company 
  

							
	By:	  	 Westcore Investments I, LLC

a Delaware limited liability company
 its Sole
Member

		  
			
		  	By:	  	 Westcore Properties, LLC

a Delaware limited liability company
 its Sole
Member

		  		  
				
	 	  	 	  	By:	 	  

		  		  	Name:	 	
		  		  	Title:	 	Authorized Signatory

 Agreed to and Accepted as of             ,
201    . 
 “Lessee”: 

PFENEX INC., 
 a Delaware corporation 

 

			
	By:	 	  

	Name:	 	
	Title:	 	

  

					
	2	 	Lessor’s Initials:
		 		 	Lessee’s Initials:     

 EXHIBIT D 

UTILITY PROVIDER AUTHORIZATION 

  

 EXHIBIT E 

RENT PAYMENT INSTRUCTIONS 
  

 
 Tenant Payment Instructions 

BRS Tustin Safeguard Associates II LLC 
  

			
	 Make Checks Payable to:
	 	 [*]FIFTH STREET

DEFERRED BONUS AND RETENTION
PLAN

(as Amended and Restated December
2013)

 

PURPOSE

 

This Deferred Bonus and Retention Plan (this
"Plan") is intended to provide an incentive to Eligible Employees (as defined below) of Fifth Street Capital LLC; Fifth
Street Management LLC; FSC, Inc., Fifth Street Capital West, Inc., FSC CT, Inc., FSC Midwest, Inc., and FS Transportation LLC (collectively
and together with any other affiliate of any of the foregoing entities that is designated in the future as a participating employer
for purposes of this Plan, the "Company") to achieve superior performance and remain in the employ of the Company.

 

Any given plan year begins January 1 and ends
December 31.

 

ELIGIBILITY

 

Any full-time employee of the Company may be
eligible to participate in this Plan (each an "Eligible Employee"). Full-time employment for purposes of this Plan is
at least 30 hours per week on average.

 

BONUS DETERMINATION

 

The Chief Executive Officer (the “CEO”)
of FSC, Inc. shall have the sole and absolute authority (i) to select those Eligible Employees who will participate in this Plan
for any given plan year (each such identified and approved Eligible Employee being a “Participant”) and (ii) to approve
the amount of any such bonus hereunder. Each Participant shall receive a written notice signed by an authorized officer of the
Company that states that he or she is a Participant in the Plan and the amount of such bonus. Any determination by the CEO under
this Plan shall be final and binding on the Eligible Employees and the Participants.

 

AWARD PAYMENT

 

Each bonus awarded hereunder commencing in December
2011 and thereafter shall be subject to deferral based on a graduated system and shall be payable in the following increments,
subject to the terms of the Plan:

 

The first $25,000 of a
bonus shall not be subject to deferral and shall be paid in full to the Participant no later than December 31 of the year in which
the bonus is awarded to the Participant (the “Award Year”).

 

If a bonus is greater than $25,000, that portion
of the bonus in excess of $25,000 and up to $100,000 shall be payable as follows:

 

    	 

    	 

    

 

 

80% of such bonus shall be paid to the Participant
no later than December 31 of the Award Year (the “Initial Payment”). The remaining 20% of such bonus shall be paid
in equal installments, each year for the following three (3) years (each such payment being a “Deferred Bonus Payment”).

 

If a bonus is greater than $100,000, the portion
of the bonus in excess of $100,000 shall be payable as follows:

 

67% of such bonus shall be paid to the Participant
no later than December 31 of the Award Year (and shall also be referred to herein as the “Initial Payment”). The remaining
33% of such bonus shall be paid in equal installments, each year for the following three (3) years (each such payment also being
referred to herein as a “Deferred Bonus Payment”).

 

Notwithstanding the foregoing, the Company reserves
the right to award a bonus that is subject to payment on a different schedule than described above, which schedule will be set
forth in a Participant’s written notice if applicable.

 

Deferred Bonus Payments are only paid so long
as the Participant remains in the employ of the Company on the applicable payment date of the Deferred Bonus Payment, except as
set forth in the Termination of Employment Section below. Each Deferred Bonus Payment shall be payable no later than December
31 of the applicable year.

 

Notwithstanding the foregoing, the Deferred Bonus
Payments may, in the discretion of the CEO, be paid to the Participants upon an event that constitutes a change in control event
for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), provided that such discretion
will not be exercisable to the extent that such exercise will contravene Section 409A of the Code or an otherwise applicable exception
thereto.

 

All bonuses awarded under this Plan prior to December
2011 shall remain subject to the original terms of such award.

 

TERMINATION OF EMPLOYMENT

 

In the event that a Participant resigns from the
Company or the Company terminates a Participant’s employment with Cause (as defined below), such Participant shall forfeit
his or her rights to receive any unpaid Deferred Bonus Payments.

 

In the event that the Company terminates a Participant’s
employment without Cause or as a result of his or her death or Disability (as defined below), subject to the Participant’s
(or his or her estate’s) execution of a release in a form satisfactory to the Company (which shall be delivered to the Participant
on or about the termination date) within the time specified therein (but in no event later than 60 days from the date of termination)
and such release not being revoked during any applicable revocation period (collectively the “Consideration Period”),
the Participant shall receive any remaining unpaid Deferred Bonus Payments no later than 30 days after the effectiveness of the
release; provided, however, that, if the Consideration Period begins in one taxable year and ends in a subsequent taxable year,
any payment shall be made in the second taxable year.

 

For purposes herein, the following terms have
the meanings specified:

 

“Cause” shall mean (i) a Participant’s
failure to substantially perform his or her duties (other than any such failure caused by Participant’s Disability), including,
without limitation, a material reduction in working hours or work product, or the Participant’s bad faith in the performance
of his or her duties, following written notice from the Company detailing the specific acts or omissions and a thirty (30) day
period of time to remedy such failure (if such failure is susceptible to cure); (ii) any misconduct in the course of the Participant’s
performance of his or her duties or any other misconduct which will reflect negatively upon the Company or otherwise impair or
impede its operations or reputation in any material respect; (iii) a Participant’s breach of a material Company policy or
any agreement with the Company to which the Participant is bound (including, without limitation, any confidentiality or other restrictive
covenant obligations), which breach is not remedied (if susceptible to remedy) following written notice by the Company detailing
the specific breach and a thirty (30) day period of time to remedy such breach; (iv) the Participant’s violation of any law
applicable to the business of the Company, including, without limitation, any securities law violation; (v) a Participant’s
failure to follow any lawful instructions from the Company; and (vi) a Participant’s conviction of a felony or other crime
of moral turpitude.

 

    	 

    	 

    

 

 

“Disability” shall mean any illness
or other physical or mental condition of a Participant that renders the Participant incapable of performing his or her customary
and usual duties for the Company, or any medically determinable illness or other physical or mental condition resulting from a
bodily injury, disease or mental disorder which, in either case, has lasted or can reasonably be expected to last for at least
180 days out of a period 365 consecutive days. The Company may require such medical or other evidence as it deems necessary to
judge the nature and permanency or the Participant’s condition.

 

MISCELLANEOUS

 

No award under this Plan shall be included in the
earnings of any Participant for the purposes of determining benefits under any other compensation or benefits program of the Company
or any of its affiliates or subsidiaries other than as provided in the Company’s 401(k) Plan.

 

No employee of the Company has any right to participate
in this Plan unless such employee has been designated as a Participant in accordance with this Plan. Neither the establishment
of this Plan nor participation therein shall in any way, now, or hereafter, affect the at-will nature of the employment relationship
between the Company and a Participant. Nothing contained in this Plan or other payment of any award hereunder shall be construed
as conferring upon an Eligible Employee any right to continue in the employ of the Company or to participate in this Plan during
subsequent years.

 

Payments hereunder are subject to any and all
applicable tax withholding obligations.

 

It is intended that any amounts payable under
this Plan shall either be exempt from Section 409A of the Code or shall comply with Section 409A (including Treasury regulations
and other published guidance related thereto) so as not to subject any Participant to payment of any additional tax, penalty or
interest imposed under Section 409A of the Code. Notwithstanding anything to the contrary contained in this Plan, any payment under
this Plan that the Company reasonably determines is subject to Section 409A(a)(2)(B)(i) of the Code shall not be paid until the
later of (i) six months after the date of the Participant’s termination of employment or the Participant’s death and
(ii) the payment date specified in this Plan for such payment. The provisions of this Plan shall be construed and interpreted to
avoid the imputation of any such additional tax, penalty or interest under Section 409A of the Code yet preserve (to the nearest
extent reasonably possible) the intended benefit payable to the Participant. Moreover, any discretionary authority that the Company
or the CEO may have pursuant to this Plan shall not be applicable to a bonus that is subject to Section 409A of the Code to the
extent such discretionary authority will contravene Section 409A of the Code or the guidance promulgated thereunder. The Company
makes no representation or warranty and shall have no liability to any Participant or to any other person if any of the provisions
of the Plan are determined to constitute deferred compensation subject to Section 409(A), but that do not satisfy an exemption
from, or the conditions of, that section.

 

This Plan and any provision under this Plan
shall be construed, administered and enforced according to the laws of Connecticut.

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