Document:

Amended and Restated Lease Agreement

 Exhibit 10.5 
  
 AMENDED AND RESTATED LEASE AGREEMENT

  
 BY AND BETWEEN

  
 HMS GATEWAY OFFICE L.P.,

 a Delaware limited partnership 
  
 AS LANDLORD 
  
 and 
  
 ADVANCED MEDICINE, INC., 
 a Delaware
corporation 
  
 AS TENANT 

 
 DATED January 1, 2001 
  
 Exhibit A 
  

 TABLE OF CONTENTS 
  

			
	 	  	Page

		
	 Basic Lease Information
	  	viii
		
	 1. Amendment, Restatement, Supersession and Demise
	  	1
		
	 2. Premises
	  	1
		
	 2.1    Definition of Premises, Building, Project, Parking Areas, Common Areas
	  	1
		
	 2.2    Construction of Base Building Improvements and Tenant Improvements; Special Provisions Relating to Expansion
Approvals
	  	2
		
	 2.3    Changes to Common Area
	  	3
		
	 3. Term
	  	4
		
	 3.1    Commencement Date
	  	4
		
	 4. Rent
	  	4
		
	 4.1    Monthly Base Rent
	  	4
		
	 4.2    Additional Rent
	  	4
		
	 4.3    Adjustment to Additional Rent
	  	7
		
	 4.4    Payment of Additional Rent
	  	7
		
	 4.4.1 Expense Statement
	  	7
		
	 4.4.2 Calculation of Additional Rent
	  	8
		
	 4.4.3 Tenant’s Proportionate Share(s)
	  	8
		
	 4.4.4 Tenant’s Audit Rights
	  	8
		
	 4.5    General Payment Terms
	  	9
		
	 4.6    Special Provisions regarding Bridge
	  	9
		
	 5. Utility Expenses
	  	9
		
	 5.1    Tenant’s Obligation to Pay
	  	9
		
	 5.2    Limitation of Landlord’s Liability for Interruption of Utilities
	  	10
		
	 6. Late Charge
	  	10
		
	 7. Letter of Credit
	  	11
		
	 8. Possession
	  	12
		
	 8.1    Tenant’s Right of Possession
	  	12
		
	 8.2    Delay in Performance of Covenants Related to Base Building Improvements
	  	12

  

 i 

			
		
	 8.3    Tenant’s Right to Rent Abatement
	  	12
		
	 9. Use of Premises
	  	13
		
	 9.1    Permitted Use
	  	13
		
	 9.2    Compliance with Governmental Regulations and Private Restrictions
	  	14
		
	 9.3    Compliance with Americans with Disabilities Act
	  	15
		
	 10. Acceptance of Premises
	  	16
		
	 11. Surrender
	  	16
		
	 11.1 Surrender at Expiration or Termination
	  	16
		
	 11.2 Removal Obligations and Abandonment of Tenant’s Property
	  	17
		
	 11.3 Indemnification
	  	17
		
	 12. Alterations and Additions
	  	17
		
	 12.1 Landlord’s Consent Required
	  	17
		
	 12.2 Alterations Permitted Without Landlord’s Consent; Removal Requirements
	  	18
		
	 12.3 Alterations at Tenant’s Expense
	  	18
		
	 12.4 Requirements of Request for Approval
	  	19
		
	 12.5 Permits Required; Insurance Required
	  	19
		
	 12.5.1 Permits
	  	19
		
	 12.5.2 Insurance
	  	19
		
	 12.6 Title to Improvements; Removal Rights; Financing
	  	20
		
	 12.7 Computer, Utility and Telecommunications Equipment
	  	20
		
	 12.8 Notice and Opportunity to Post Notice of Nonresponsibility
	  	20
		
	 13. Maintenance and Repairs of Premises
	  	20
		
	 13.1 Maintenance by Tenant
	  	20
		
	 13.2 Maintenance by Landlord
	  	21
		
	 13.3 Landlord’s Right to Perform Tenant’s Obligations
	  	21
		
	 13.4 Tenant’s Waiver of Rights
	  	22
		
	 14. Landlord’s Insurance
	  	22
		
	 15. Tenant’s Insurance
	  	22
		
	 15.1 Commercial General Liability Insurance
	  	22
		
	 15.2 Property Insurance
	  	23

  

 ii 

			
		
	 15.3 Worker’s Compensation Insurance; Employer’s Liability Insurance
	  	23
		
	 15.4 Business Interruption Insurance
	  	23
		
	 15.5 Insurance Standards and Evidence of Coverage
	  	23
		
	 16. Indemnification
	  	24
		
	 16.1 Of Landlord
	  	24
		
	 16.2 Of Tenant
	  	24
		
	 16.3 No Impairment of Insurance
	  	25
		
	 17. Subrogation
	  	25
		
	 18. Signs
	  	25
		
	 19. Free from Liens
	  	25
		
	 20. Entry by Landlord
	  	26
		
	 21. Destruction and Damage
	  	26
		
	 21.1 Damage Covered by Extended Coverage Insurance
	  	26
		
	 21.1.1 Material Damage; Insured Loss
	  	26
		
	 21.1.2 Minor Damage; Insured Loss
	  	27
		
	 21.1.3 Calculation of Restoration Period
	  	27
		
	 21.2 Uninsured Loss
	  	27
		
	 21.3 Casualty During Last Twelve Months of Term
	  	28
		
	 21.4 Tenant’s Right to Terminate Lease
	  	28
		
	 21.5 Rent Abatement
	  	28
		
	 21.6 Restoration of Base Building Improvements and Tenant Improvements
	  	28
		
	 21.7 Waiver
	  	29
		
	 22. Condemnation
	  	29
		
	 23. Assignment and Subletting
	  	30
		
	 23.1 Landlord’s Consent Required Except for Permitted Transfers
	  	30
		
	 23.2 Requirements of Request for Consent
	  	30
		
	 23.3 Criteria To Be Considered in Connection with Request for Consent
	  	31
		
	 23.4 Permitted Transfers
	  	31
		
	 23.5 Excess Rent
	  	32
		
	 23.6 No Release of Tenant
	  	32
		
	 23.7 Payment of Landlord’s Fees
	  	32

  

 iii 

			
		
	 23.8 No Consent to Further Assignment
	  	32
		
	 23.9 Constraints Reasonable
	  	33
		
	 24. Tenant’s Default
	  	33
		
	 25. Landlord’s Remedies
	  	35
		
	 25.1 Termination
	  	35
		
	 25.2 Continuation of Lease
	  	36
		
	 25.3 Re-entry
	  	36
		
	 25.4 Reletting
	  	36
		
	 25.5 Termination
	  	37
		
	 25.6 Cumulative Remedies
	  	37
		
	 25.7 No Surrender
	  	37
		
	 26. Landlord’s Right To Perform Tenant’s Obligations
	  	38
		
	 26.1 Landlord’s Right to Perform
	  	38
		
	 26.2 In Emergencies
	  	38
		
	 26.3 Tenant’s Obligation to Reimburse Landlord
	  	38
		
	 27. Attorneys’ Fees
	  	38
		
	 27.1 Prevailing Party Entitled to Fees
	  	38
		
	 27.2 Costs of Collection
	  	39
		
	 28. Taxes
	  	39
		
	 29. Effect of Conveyance
	  	39
		
	 30. Tenant’s Estoppel Certificate
	  	39
		
	 31. Subordination
	  	40
		
	 32. Environmental Covenants
	  	40
		
	 32.1    Disclosure Certificate
	  	40
		
	 32.2    Tenant’s Obligation to Update Disclosure Certificate
	  	41
		
	 32.3    Definition of Hazardous Materials
	  	41
		
	 32.4    Definition of Environmental Laws
	  	41
		
	 32.5    Tenant’s Use of Hazardous Materials
	  	42
		
	 32.6    Tenant’s Remediation Obligations
	  	42
		
	 32.7    Landlord’s Inspections
	  	42

  

 iv 

			
		
	 32.8    Landlord’s Right to Remediate
	  	43
		
	 32.9    Condition of Premises Upon Expiration or Termination
	  	43
		
	 32.10 Tenant’s Indemnification of Landlord
	  	43
		
	 32.11 Landlord’s Indemnification of Tenant
	  	43
		
	 32.12 Limitation of Tenant’s Liability
	  	44
		
	 32.13 Survival
	  	44
		
	 33. Notices
	  	44
		
	 34. Waiver
	  	44
		
	 35. Holding Over
	  	45
		
	 36. Successors and Assigns
	  	45
		
	 36.1 Binding on Successors, Etc
	  	45
		
	 36.2 Landlord’s Right to Sell
	  	45
		
	 37. Time
	  	45
		
	 38. Brokers
	  	45
		
	 39. Limitation of Liability
	  	46
		
	 40. Financial Statements
	  	46
		
	 41. Rules and Regulations
	  	46
		
	 42. Mortgagee Protection
	  	47
		
	 42.1 Modifications for Lender
	  	47
		
	 42.2 Rights to Cure
	  	47
		
	 43. Entire Agreement
	  	47
		
	 44. Interest
	  	47
		
	 45. Interpretation
	  	48
		
	 46. Representations and Warranties
	  	48
		
	 46.1 Of Tenant
	  	48
		
	 46.2 Of Landlord
	  	48
		
	 47. Security
	  	49
		
	 47.1 Landlord Not Obligated to Provide Security
	  	49

  

 v 

			
		
	 47.2 Tenant’s Obligation to Comply with Security Measures
	  	49
		
	 48. Jury Trial Waiver
	  	49
		
	 49. Option To Renew
	  	49
		
	 49.1 Commencement Dates
	  	50
		
	 49.2 Renewal Option is Personal; Non-Transferable
	  	50
		
	 49.3 Tenant’s Notice of Exercise
	  	50
		
	 49.4 Monthly Base Rent During Renewal Term
	  	50
		
	 49.4.1 Fair Market Rent Definition
	  	51
		
	 49.4.2 Determination of Fair Market Rent
	  	51
		
	 49.4.3 Arbitrator Qualifications
	  	51
		
	 49.4.4 Fees and Costs of Arbitrators
	  	51
		
	 49.4.5 Arbitration Period Base Rent
	  	52
		
	 50. Parking
	  	52
		
	 50.1 Grant of Parking License
	  	52
		
	 50.2 No Assignment of Parking License
	  	52
		
	 50.3 Visitor Parking
	  	52
		
	 51. Right of First Offer
	  	53
		
	 51.1 Offer Notice
	  	53
		
	 51.2 Election Notice
	  	53
		
	 51.3 Purchase and Sale Agreement
	  	53
		
	 51.4 Failure to Exercise or Sign Agreement
	  	53
		
	 51.5 Net Operating Income
	  	54
		
	 51.6 Landlord’s Sale to Affiliate; Survival of Option
	  	54
		
	 51.7 Concurrent Exercise of Rights of First Offer with respect to 901 Gateway Boulevard and 951 Gateway Boulevard
	  	54
		
	 52. Memorandum of Lease
	  	55

  

 vi 

			
	 Exhibit

	  	 
		
	 A
	  	Base Building Construction Agreement
		
	 A-l
	  	Preliminary Specifications for Base Building Improvements
		
	 A-2
	  	Site Plan
		
	 B
	  	Premises Construction Agreement
		
	 B-l
	  	Description of “Warm Shell” Improvements
		
	 C
	  	Additional Operational Guidelines
		
	 D
	  	Rules and Regulations
		
	 E
	  	Hazardous Materials Disclosure Certificate
		
	 F
	  	Tenant’s Property
		
	 G
	  	Memorandum of Lease
		
	 H
	  	Deferred Allowance Amortization Memorandum

  

 vii 

 AMENDED AND RESTATED LEASE
AGREEMENT 
  
 BASIC
LEASE INFORMATION 
  

			
	Lease Date:	  	January 1, 2001
		
	Landlord:	  	 HMS Gateway Office, L.P.
 a Delaware limited
partnership

		
	Landlord’s Address:	  	 c/o Hines
 101 California Street, Suite
1000
 San Francisco, California 94111-5848
 Attention: Tom
Kruggel

		
	 	  	 All notices sent to Landlord under this Lease
 shall be sent to the above address, with copies
 to:

		
	 	  	 Hines
 651
Gateway Boulevard, Suite 1140
 South San Francisco, California 94080
 Attention: Catherine Fogelman

		
	Tenant:	  	 Advanced Medicine, Inc.,
 a Delaware
corporation

		
	Tenant’s Contact Person:	  	Marty Glick
		
	Tenant’s Address:	  	 901 Gateway Boulevard
 South San Francisco, California
94080

		
	Premises Square Footage:	  	Sixty thousand (60,000) square feet, subject to final determination by Landlord’s Architect upon the commencement of the Term, such measurement to be made in accordance with BOMA
standard definition of gross square footage.
		
	Premises Address:	  	 951 Gateway Boulevard
 South San Francisco,
California

		
	Project:	  	Parcel B as shown on the Final Parcel Map 99-095 dated March 2000, prepared by Kier & Wright, together with all improvements constructed thereon.
		
	Building (if not the same as the Project):	  	 951 Gateway Boulevard
 South San Francisco,
California

  

 viii 

			
		
	 Tenant’s Proportionate
 Share of Project:
	  	 100%

		
	 Tenant’s Proportionate
 Share of Building:
	  	 100%

		
	Commencement Date:	  	 November 1, 2001

		
	Expiration Date:	  	 March 31, 2012

		
	Monthly Base Rent:	  	 1.      Monthly Base Rent for the period commencing on the Commencement Date and ending March 31, 2002 shall
be             

		
	 	  	 2.      Monthly Base Rent for the period commencing April 1, 2002 and ending March 31, 2003 shall be
            

		
	 	  	 3.      Monthly Base Rent for the period commencing April 1, 2003 and ending March 31, 2004 shall be
            

		
	 	  	 4.      Monthly Base Rent for the period commencing April 1, 2004 and ending March 31, 2005 shall be
            

		
	 	  	 5.      Monthly Base Rent for the period commencing April 1, 2005 and ending March 31, 2006 shall be
            

		
	 	  	 6.      Monthly Base Rent for the period commencing April 1, 2006 and ending March 31, 2007 shall be
            

		
	 	  	 7.      Monthly Base Rent for the period commencing April 1, 2007 and ending March 31, 2008 shall be
            

		
	 	  	 8.      Monthly Base Rent for the period commencing April 1, 2008 and ending March 31, 2009 shall be
            

		
	 	  	 9.      Monthly Base Rent for the period commencing April 1, 2009 and ending March 31, 2010 shall be
            

		
	 	  	 10.    Monthly Base Rent for the period commencing April 1, 2010 through March 31, 2011 shall be
            

		
	 	  	 11.    Monthly Base Rent for the period commencing April 1, 2011 and ending March 31, 2012 shall be
            

		
	 	  	The above monthly Base Rent calculations are subject to change after final determination of the Premises square footage by Landlord’s Architect and any such adjustment shall be based on
a monthly base rate calculated from time to time by dividing the applicable monthly Base Rent specified above by 60,000, and multiplying such monthly base rate by the actual square footage of the Premises.

  

 ix 

			
	Permitted Use:	  	General office and research and development activities associated with biotechnology/ pharmaceutical services. All uses must be in accordance with all applicable Laws.
		
	Unreserved Parking Spaces:	  	One hundred sixty (160) non-exclusive and undesignated parking spaces.
		
	 	  	Except as otherwise provided in this Lease to the contrary, the foregoing parking calculation shall remain fixed and shall not be adjusted based upon the final determination of the Premises
gross square footage.
		
	 Tenant Improvement
 Allowance:
	  	                                       
                                        
 (viz.,             per square foot), subject to adjustment following the final determination of the Premises square footage by Landlord’s Architect upon the commencement of
the Term, and any such adjustment shall be based on an amount equal              multiplied by the applicable number of square feet involved.
		
	Deferred Allowance:	  	Up to
                                        
                                     (viz.,
                     per square foot), subject to adjustment upon the final determination of the Premises square footage by Landlord’s
Architect. Subject to the right of Tenant to prepay the Deferred Allowance in accordance with and to the extent provided in Section D of Exhibit B, the Deferred Allowance shall be amortized over the initial Term and repaid, together
with accrued interest thereon, in accordance with said Section D of Exhibit B. Interest shall accrue on the initial
                                        
                 disbursed by Landlord at the per annum rate of              and on the second
                                        
disbursed by Landlord at the per annum rate of         

  

 x 

 AMENDED AND RESTATED LEASE
AGREEMENT 
  
 THIS
AMENDED AND RESTATED LEASE AGREEMENT is made and entered into by and between Landlord and Tenant as of the Lease Date. 
  
 R E C I T
A L S 
  
 A.
Landlord and Tenant are parties to that certain Lease Agreement, dated July 11, 2000 (“Original 951 Lease”) pursuant to which Landlord agreed to lease to Tenant, and Tenant agreed to lease from Landlord, the Premises which was
contemplated to be comprised of a 50,000 square foot building to be constructed on the Project. 
  
 B. Tenant has requested that Landlord construct a larger Premises consisting of an approximately 60,000 square foot building. 
  
 C. Landlord and Tenant now wish to amend and restate the Original 951 Lease
to accommodate Tenant’s request for an enlarged Premises, to make corresponding adjustments to the Tenant Improvement Allowance and Rent and to amend other matters as set forth herein. 
  
 The defined terms used in this Amended and Restated Lease Agreement which are
defined in the Basic Lease Information attached to this Amended and Restated Lease Agreement (“Basic Lease Information”) shall have the meaning and definition given them in the Basic Lease Information. The Basic Lease Information,
the exhibits, the addendum or addenda described in the Basic Lease Information, and this Amended and Restated Lease Agreement are and shall be construed as a single instrument and are referred to herein as the “Lease”. 

 
 O P E R A
T I V E P R O V I S I O N S 
  

	1.	AMENDMENT, RESTATEMENT, SUPERSESSION AND DEMISE 

  
 This Lease shall amend and restate the Original 951 Lease in its entirety
and shall supersede all provisions thereof. Landlord and Tenant hereby acknowledge and agree that from and after the date of this Lease, the Original 951 Lease is hereby null, void and of no further force or affect. 
  
 In consideration for the rents and all other charges and payments payable by
Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease, LANDLORD DOES HEREBY LEASE TO TENANT, AND
TENANT DOES HEREBY HIRE AND TAKE FROM LANDLORD, the Premises described below (the “Premises”), upon the
agreements, terms and conditions of this Lease for the Term hereinafter stated. 
  

	2.	PREMISES 

  

	 	2.1	Definition of Premises, Building, Project, Parking Areas, Common Areas 

  
 The “Premises” demised by this Lease consist of that certain building (the “Building”) to
be constructed in accordance with the provisions hereof in the area shown on the Site Plan attached 

  

 1 

 
hereto as Exhibit A-2, which Building is to be located in that certain real estate development (the “Project”) specified in
the Basic Lease Information. Subject to the provisions of this Lease, Landlord shall have the right to revise the definition of “Project” from time to time as Landlord develops and improves the Project and surrounding real property
now or hereafter owned by Landlord or its Affiliates (as hereinafter defined), or sells to third parties portions of the Project or such adjacent properties. If at any time during the Term, Tenant is leasing, in accordance with the terms and
conditions of this Lease, less than the entire Building, the “Premises” shall be deemed to include only that portion of the Building then leased by Tenant pursuant to this Lease. Tenant shall have the non-exclusive right (in common
with the other tenants, Landlord and any other person granted use by Landlord) to use the Common Areas (as hereinafter defined), except that, with respect to the Project’s parking areas (the “Parking Areas”), Tenant shall have
only the rights set forth in Paragraph 50 below. No easement for light or air is incorporated in the Premises. For purposes of this Lease, the term “Common Areas” shall mean all areas and facilities (i) outside the Premises and
outside other buildings occupied or intended to be occupied by tenants, and (ii) either within the exterior boundary line of the Project or within the exterior boundary lines of properties abutting the Project, which areas and facilities are from
time to time provided and designated by Landlord for the non-exclusive use of Landlord, Tenant and other tenants of the Project or of the properties abutting the Project and their respective employees, guests and invitees, including, without
limitation, the Parking Areas. 
  

	 	2.2	Construction of Base Building Improvements and Tenant Improvements; Special Provisions Relating to Expansion Approvals 

  
 (a) Landlord shall cause the construction of the Base Building Improvements
in accordance with the terms and conditions of the Base Building Construction Agreement attached hereto as Exhibit A. The Base Building Improvements are generally described on Exhibit A-1 hereto. Additionally, Tenant
shall cause the construction of certain tenant improvements in the interior of the Premises in accordance with the terms and conditions of the Premises Construction Agreement attached hereto as Exhibit B. 
  
 (b) Notwithstanding anything to the contrary contained in this Lease or the
Exhibits hereto, Tenant shall be solely responsible for all costs and expenses incurred by Landlord in connection with the increase in the square footage of the Premises from approximately 50,000 square feet (as contemplated under the Original 951
Lease) to approximately 60,000 square feet (as provided for hereunder) (the “Additional Expansion Costs”), excluding, however, the costs of constructing the Base Building Improvements to be paid by Landlord pursuant to Exhibit
A hereto. The “Additional Expansion Costs” shall include, without limitation, all architectural and engineering fees and expenses incurred by Landlord in connection with the expansion of the Premises (including, without limitation,
all costs of preparing the Base Building Plans and Specifications (as defined within Exhibit A attached hereto)), all permitting fees, levies, assessments and other fees imposed by the City, the costs and expenses of preparing all
submissions required to be made to the City, all costs of preparing and implementing any transportation demand management plan, and all other fees, costs and expenses incurred in connection with the obtaining of the Expansion Approvals. The
Additional Expansion Costs shall be deemed “Additional Rent” hereunder and shall be due and payable by Tenant to Landlord within ten (10) days following demand. 
  

 2 

 (c) Without limiting the terms of Paragraph 2.2(b) above, Tenant shall be solely responsible for
performing all obligations required by the City to be performed by Landlord or Tenant prior to or during the Term under the Revised Conditions of Approval (as hereinafter defined), all to the extent that such obligations were not imposed by the
Original Conditions of Approval (as hereinafter defined). Without limiting the generality of the foregoing, Tenant shall (i) implement the Transportation Demand Management Program, dated December 4, 2000, prepared by Sequoia Solutions Consulting
(the “TDM”), including, without limitation, conducting quarterly employee surveys, preparing and submitting to the City an annual TDM Report and, if necessary, cooperating with the City and the Peninsula Congestion Relief Alliance
in identifying and implementing changes to the TDM Program from time to time, all as required by Section A.4 of the Revised Conditions of Approval, (ii) pay all costs associated with the TDM, including, without limitation, the actual costs of
preparing the TDM and the costs of installing an electric vehicle charging station and designated and protected motorcycle parking, and (iii) pay any additional Oyster Point Overpass fees assessed by the City in connection with the issuance of the
Expansion Approvals, including, without limitation, Oyster Point Overpass fees assessed pursuant to Section B.3 of the Revised Conditions of Approval. Tenant shall pay all costs due under this Paragraph 2.2(c) directly to the party or parties to
whom said amounts are owed. In the event that Landlord shall pay any such amounts, then said sums shall be deemed Additional Rent hereunder and shall be paid to Landlord within ten (10) days of demand. As used herein, “Original Conditions of
Approval” means the “Proposed Conditions of Approval,” PP-97-063/Mod 1; Neg. Dec. No. ND-97-063/Mod 1, adopted at the September 9, 1998 Redevelopment Agency meeting, and “Revised Conditions of Approval” means the
“Proposed Conditions of Approval,” PP-97-063/Mod 3 & V-97-063/Mod 3, adopted at the December 13, 2000 Redevelopment Agency meeting. 
  

	 	2.3	Changes to Common Area 

  
 (a) Landlord has the right, in its sole and absolute discretion, from time to time, to: (i) make changes to the Common Areas, including, without
limitation, changes in the location, size, shape and number of driveways, entrances, parking spaces (provided, however, that Landlord shall not have the right, except as otherwise provided herein, to reduce the total number of parking spaces below
the number allocated to Tenant in the Basic Lease Information), Parking Areas, ingress, egress, direction of driveways, entrances, corridors and walkways; (ii) close temporarily any of the Common Areas for maintenance or construction purposes so
long as reasonable access to the Premises remains available; (iii) add additional buildings and improvements to the Common Areas or remove existing buildings or improvements therefrom; (iv) use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Project or any portion thereof so long as reasonable access to the Premises and the loading area serving the Premises remains available; and (v) do and perform any other acts or make any other changes in,
to or with respect to the Common Areas and the Project as Landlord may, in its sole and absolute discretion, deem to be appropriate. 
  
 (b) Notwithstanding the terms of Paragraph 2.3(a) above, Tenant understands and acknowledges that Landlord will during the Term be developing the Project
and other lands owned by Landlord for Tenant and other tenants or occupants and that from time to time, whether during periods of construction or otherwise, Landlord may be unable to provide the full number of parking spaces allocated to Tenant
under this Lease in the Parking Areas. During 

  

 3 

 
such periods, Landlord shall have the right to provide parking to Tenant on properties reasonably proximate to the Project (the “Adjacent
Properties”) or through the use of valets or parking attendants on the Parking Areas or the Adjacent Properties, provided only that Tenant shall at all times have parking for the number of automobiles contemplated under this Lease.

  

	3.	TERM 

  

	 	3.1	Commencement Date 

  
 The term of this Lease (the “Term”) shall commence on November 1, 2001 (the “Commencement Date”) and shall expire on
March 31, 2012 (the “Expiration Date”). 
  

	4.	RENT 

  

	 	4.1	Monthly Base Rent 

  
 Commencing on the Commencement Date Tenant shall pay to Landlord, in advance on the first day of each month, without further notice or demand and without
offset or deduction, the monthly installments of rent specified in the Basic Lease Information (the “Monthly Base Rent”). If the actual expiration or termination of the Term of this Lease is not the last day of a calendar month, a
prorated installment of Rent based on a per diem calculation shall be paid for the fractional calendar month during which the Rent commences or the Term expires or terminates. 
  

	 	4.2	Additional Rent 

  
 This Lease is intended to be a triple-net Lease with respect to Landlord; and subject to Paragraph 13.2 below, the Base Rent owing hereunder is (1) to be
paid by Tenant absolutely net of all costs and expenses relating to Landlord’s ownership and operation of the Project and the Building, and (2) not to be reduced, offset or diminished, directly or indirectly, by any cost, charge or expense
payable hereunder by Tenant or by others in connection with the Premises, the Building and/or the Project or any part thereof. The provisions of this Paragraph 4.2 for the payment of Tenant’s Proportionate Share(s) of Expenses (as hereinafter
defined) are intended to pass on to Tenant its share of all such costs and expenses. In addition to the Base Rent, Tenant shall pay to Landlord, in accordance with this Paragraph 4, Tenant’s Proportionate Share(s) of all costs and expenses paid
or incurred by Landlord in connection with the ownership, operation, maintenance, management and repair of the Premises, the Building and/or the Project or any part thereof (collectively, the “Expenses”), including, without
limitation, all the following items (the “Additional Rent”): 
  
 1. Taxes and Assessments. All real estate taxes and assessments, which shall include any form of tax, assessment, fee, license fee, business license fee, levy, penalty (if a result of Tenant’s
delinquency), or tax (other than net income, estate, succession, inheritance, transfer or franchise taxes), imposed by any authority having the direct or indirect power to tax, or by any city, county, state or federal government or any improvement
or other district or division thereof, whether such tax is (i) determined by the area of the Premises, the Building and/or the Project or any part thereof, or the Rent and other sums payable hereunder by Tenant or by other tenants, including, but
not limited to, any gross income or excise tax levied by any of the foregoing authorities with respect to receipt of Rent and/or other sums due under this Lease; (ii) upon any 

  

 4 

 
legal or equitable interest of Landlord in the Premises, the Building and/or the Project or any part thereof; (iii) upon this transaction or any document to
which Tenant is a party creating or transferring any interest in the Premises, the Building and/or the Project; (iv) levied or assessed in lieu of, in substitution for, or in addition to, existing or additional taxes against the Premises, the
Building and/or the Project, whether or not now customary or within the contemplation of the parties; or (v) surcharged against the parking area. Tenant and Landlord acknowledge that Proposition 13 was adopted by the voters of the State of
California in the June, 1978 election and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such purposes as fire protection, street, sidewalk, road, utility construction and maintenance, refuse removal
and for other governmental services which may formerly have been provided without charge to property owners or occupants. It is the intention of the parties that all new and increased assessments, taxes, fees, levies and charges due to any cause
whatsoever are to be included within the definition of real property taxes for purposes of this Lease. “Taxes and assessments” shall also include legal and consultants’ fees, costs and disbursements incurred in connection with
proceedings to contest, determine or reduce taxes, Landlord specifically reserving the right, but not the obligation, to contest by appropriate legal proceedings the amount or validity of any taxes. In the event Landlord elects not to contest the
real property taxes and assessments levied against the Building with respect to any calendar year during the Term, and if Tenant demonstrates to Landlord’s reasonable satisfaction that such a contest would likely result in a reduction of such
taxes and assessments, then Tenant shall have the right to retain a consultant to prosecute such contest, subject to Landlord’s reasonable approval of the identity of such consultant. Such contest shall be conducted at Tenant’s sole cost
and expense, provided that if Tenant prevails in such contest, the reasonable fees and costs of Tenant’s consultants shall, to the extent of any actual savings resulting from such contest, be equitably shared by Tenant and other tenant(s) who
receive the benefit of such savings. Tenant shall have the right to deduct from its payments of Additional Rent the shares of such fees and costs to be charged to other tenants, as reasonably determined by Landlord, and Landlord shall cause such
amounts to be billed or charged to the other benefited tenant(s). 
  
 2. Insurance. All insurance premiums for the Building and/or the Project or, subject to clause (i) of the paragraph immediately following Paragraph 4.2(8) below, any part thereof, including premiums for
“all risk” fire and extended coverage insurance, commercial general liability insurance, rent loss or abatement insurance, earthquake insurance, flood or surface water coverage, and other insurance as Landlord deems necessary in its sole
discretion, and any deductibles paid under policies of any such insurance. 
  
 3. Utilities. The cost of all Utilities (as hereinafter defined) serving the Premises, the Building and the Common Areas that are
not separately metered to Tenant, any assessments or charges for Utilities or similar purposes included within any tax bill for the Building or the Common Area, including, without limitation, entitlement fees, allocation unit fees, and/or any
similar fees or charges and any penalties (if a result of Tenant’s delinquency) related thereto, and any amounts, taxes, charges, surcharges, assessments or impositions levied, assessed or imposed upon the Building or the Common Areas, or any
part thereof, or upon Tenant’s use and occupancy thereof, as a result of any rationing of Utility services or restriction on Utility use affecting the Building and/or the Common Areas, as contemplated in Paragraph 5 below (collectively,
“Utility Expenses”). 
  

 5 

 4. Common Area Expenses. All costs to operate, maintain, repair, replace,
supervise, insure and administer the Common Areas, including supplies, materials, labor and equipment used in or related to the operation and maintenance of the Common Areas, including parking areas (including, without limitation, all costs of
resurfacing and restriping parking areas), signs and directories on the Building and/or the Project, landscaping (including maintenance contracts and fees payable to landscaping consultants), amenities, sprinkler systems, sidewalks, walkways,
driveways, curbs, lighting systems and security services, if any, provided by Landlord for the Common Areas. 
  
 5. Parking Charges. Any parking charges or other costs levied, assessed or imposed by, or at the direction of, or resulting from
statutes or regulations, or interpretations thereof, promulgated by any governmental authority or insurer in connection with the use or occupancy of the Building or the Project. 
  
 6. Maintenance and Repair Costs. Except for costs which are the responsibility of Landlord pursuant
to Paragraph 13.2 below, all costs to maintain, repair, and replace the Premises, the Building and/or the Common Areas or any part thereof, including, without limitation, (i) all costs paid under maintenance, management and service agreements such
as contracts for janitorial, security and refuse removal, (ii) all costs to maintain, repair and replace the roof coverings of the Building, (iii) all costs to maintain, repair and replace the heating, ventilating, air conditioning, plumbing, sewer,
drainage, electrical, fire protection, life safety and security systems and other mechanical and electrical systems and equipment serving the Premises, the Building and/or the Common Areas or any part thereof (collectively, the
“Systems”), all to the extent that Landlord or Landlord’s Agents perform such tasks. 
  
 7. Life Safety Costs. All costs to install, maintain, repair and replace all life safety systems, including, without limitation,
all fire alarm systems, serving the Premises, the Building and/or the Common Areas or any part thereof (including all maintenance contracts and fees payable to life safety consultants) whether such systems are or shall be required by Landlord’s
insurance carriers, Laws (as hereinafter defined) or otherwise, all to the extent that Landlord or Landlord’s Agents perform such tasks. 
  
 8. Management and Administration. All costs for management and administration of the Premises, the Building and/or the Project or
any part thereof, including, without limitation, a property management fee equal to two percent (2%) of the annual Rent derived from the Building, accounting, auditing, billing, postage, legal and accounting costs and fees for licenses and permits
related to the ownership and operation of the Project (but specifically excluding any salaries and benefits of employees of Landlord or the property manager of the Building). 
  
 9. Operational Fees Related To Expansion Approvals. Any charges or other costs which are paid or
incurred by Landlord during the Term in relation to, as a result of, or as a condition, to obtaining the Expansion Approvals (as defined in Exhibit A attached hereto), including, without limitation, (i) any fees, levies or assessments
charged by the City, (ii) the salaries of any parking administrators or managers and all other employees or independent contractors who have been hired in response to any condition or obligation imposed in connection with the issuance of the
Expansion Approvals, (iii) the costs and expenses incurred in the establishment, management and administration of any transportation demand management 

  

 6 

 
plan, (iv) the costs and expenses incurred in the management, administration and operation of any shuttle service, and (v) any similar costs and expenses
incurred in relation to any program instituted as a result of, or as a condition to, obtaining the Expansion Approvals, whether or not such charges, costs and/or expenses relate solely to the Project. 
  
 10. Gateway Operational Expenses. All charges,
assessments, costs or fees levied by any association or entity of which the Project or any part thereof is a member or to which the Project or any part thereof is subject (including, without limitation, the Gateway Property Owners’
Association), or levied under or imposed by any reciprocal easement agreement, joint operating agreement or other document, instrument or agreement to which the Project or any part thereof is subject. 
  
 Notwithstanding anything in this Paragraph 4.2 to the contrary, (i) Tenant
shall not be responsible for the payment of any Expenses which relate to or benefit solely another building within the Project occupied or intended to be occupied by tenants or for which Landlord receives full reimbursement from other tenants, and
(ii) with respect to all sums payable by Tenant as Additional Rent under this Paragraph 4.2 for the replacement of any item or the construction of any new item in connection with the physical operation of the Premises, the Building or the Project
(i.e., HVAC, roof membrane or coverings and parking area) which is a capital item the replacement of which would be capitalized under generally accepted accounting principles consistently applied, Tenant shall be required to pay only the
prorata share of the cost of the item falling due within the Term (including any Renewal Term) based upon the amortization of the same over the useful life of such item, as reasonably determined by Landlord. Such share shall be paid by Tenant on a
monthly basis throughout the Term (rather than in a lump sum when incurred by Landlord). 
  

	 	4.3	Adjustment to Additional Rent 

  
 Notwithstanding any other provision herein to the contrary, if the Building is not fully occupied during any year of the Term, an adjustment shall be made
in computing Additional Rent for such year so that Additional Rent shall be computed as though the Building had been fully occupied during such year; provided, however, that in no event shall Landlord collect in total, from Tenant and all other
tenants of the Building, an amount greater than one hundred percent (100%) of the actual Expenses during any year of the Term. 
  

	 	4.4	Payment of Additional Rent 

  

	 	4.4.1	Expense Statement 

  
 Upon the Commencement Date, Landlord shall submit to Tenant an estimate of monthly Additional Rent for the period between the Commencement Date and the
following December 31 and Tenant shall pay such estimated Additional Rent on a monthly basis, in advance, on the first day of each month. Tenant shall continue to make said monthly payments until notified by Landlord of a change therein. By April 1
of each calendar year, Landlord shall endeavor to provide to Tenant a statement (the “Expense Statement”) showing the actual Additional Rent due to Landlord for the prior calendar year, to be prorated during the first year from the
Commencement Date. If the total of the monthly payments of Additional Rent that 

  

 7 

 
Tenant has made for the prior calendar year is less than the actual Additional Rent chargeable to Tenant for such prior calendar year, then Tenant shall pay
the difference in a lump sum within ten (10) days after receipt of such statement from Landlord. Any overpayment by Tenant of Additional Rent for the prior calendar year shall be credited towards the Additional Rent next due. 
  

	 	4.4.2	Calculation of Additional Rent 

  
 Landlord’s then-current annual operating and capital budgets for the Building and the Project shall be used for purposes of calculating Tenant’s
monthly payment of estimated Additional Rent for the current year. Landlord shall make the final determination of Additional Rent for the year in which this Lease terminates as soon as possible after termination of such year. Even though the Term
has expired and Tenant has vacated the Premises, Tenant shall remain liable for payment of any amount due to Landlord in excess of the estimated Additional Rent previously paid by Tenant, and, conversely, Landlord shall promptly return to Tenant any
overpayment. Failure of Landlord to submit statements as called for herein shall not be deemed a waiver of Tenant’s obligation to pay Additional Rent as herein provided. 
  

	 	4.4.3	Tenant’s Proportionate Share(s) 

  
 With respect to Expenses which Landlord allocates to the Building, Tenant’s “Proportionate Share” shall be the percentage set forth
in the Basic Lease Information as Tenant’s Proportionate Share of the Building, as adjusted by Landlord from time to time for a remeasurement of or changes in the physical size of the Premises or the Building. With respect to Expenses which
Landlord allocates to the Project, Tenant’s “Proportionate Share” shall be the percentage set forth in the Basic Lease Information as Tenant’s Proportionate Share of the Project as adjusted by Landlord from time to time in
connection with the construction of additional buildings within the Project or a remeasurement of or changes in the physical size of the Premises or the Project, whether such changes in size are due to an addition to or a sale or conveyance of a
portion of the Project or otherwise. Notwithstanding the foregoing, Landlord may equitably adjust Tenant’s Proportionate Share(s) for all or part of any item of expense or cost reimbursable by Tenant that relates to a repair, replacement, or
service that benefits only the Premises or only a portion of the Building and/or the Project or that varies with the occupancy of the Building and/or the Project; provided, however, that Tenant’s prorata allocation of any such Expense shall not
be disproportionate to any other tenant’s prorata allocation of such Expense. 
  

	 	4.4.4	Tenant’s Audit Rights 

  
 Provided that Tenant is not in Default under the terms of this Lease, Tenant, at its sole cost and expense, shall have the right within sixty (60) days
after the delivery of each Expense Statement to review and audit Landlord’s books and records regarding such Expense Statement for the sole purpose of determining the accuracy of such Expense Statement. Such review or audit shall be performed
by a nationally recognized accounting firm that calculates its fees with respect to hours actually worked and that does not discount its time or rate (as opposed to a calculation based upon percentage of recoveries or other incentive arrangement),
shall take place during normal business hours in the office of Landlord or Landlord’s property manager and shall be completed within three (3) business days after the commencement thereof. If Tenant does not 

  

 8 

 
so review or audit Landlord’s books and records, Landlord’s Expense Statement shall be final and binding upon Tenant. In the event that Tenant
determines on the basis of its review of Landlord’s books and records that the amount of Expenses paid by Tenant pursuant to this Paragraph 4 for the period covered by such Expense Statement is less than or greater than the actual amount
properly payable by Tenant under the terms of this Lease, Tenant shall promptly pay any deficiency to Landlord or, if Landlord concurs with the results of Tenant’s audit, Landlord shall promptly refund any excess payment to Tenant, as the case
may be. Landlord shall pay for any reasonable audit expenses if such excess payment exceeds the aggregate Expenses in Landlord’s Expense Statement by seven percent (7%). 
  

	 	4.5	General Payment Terms 

  
 The Base Rent, Additional Rent and all other sums payable by Tenant to Landlord hereunder, including, without limitation, any Late Charges, as defined
below, assessed pursuant to Paragraph 6 below, any interest assessed pursuant to Paragraph 44 below, and any repayments of the Deferred Allowance, are referred to collectively as the “Rent.” All Rent shall be paid without deduction,
offset or abatement (except as specifically provided in this Lease) in lawful money of the United States of America. Checks are to be made payable to HMS Gateway Office, L.P. and shall be mailed: c/o Hines, 101 California Street, Suite 1000, San
Francisco, California 94111-5848, Attention: Tom Kruggel, or to such other person or place as Landlord may, from time to time, designate to Tenant in writing. The Rent for any fractional part of a calendar month at the commencement or termination of
the Lease term shall be a prorated amount of the Rent for a full calendar month based upon the number of days in the month of the commencement or termination of the Lease term, as applicable. 
  

	 	4.6	Special Provisions regarding Bridge 

  
 Notwithstanding anything in this Section 4 to the contrary, Tenant shall not be required to pay Base Rent or Additional Rent on the Bridge (as defined in
Exhibit A hereto), if any, and the square footage of the Bridge shall not be taken into account in determining Tenant’s Proportionate Shares of the Building and the Project. 
  

	5.	UTILITY EXPENSES 

  

	 	5.1	Tenant’s Obligation to Pay 

  
 Tenant shall pay the cost of all water, sewer use, sewer discharge fees, gas, heat, electricity, refuse pick-up, janitorial service (including, without
limitation, exterior and interior window washing), telephone, cable T.V., telecommunications facilities and all materials and services or other utilities (collectively, “Utilities”) billed or metered separately to the Premises
and/or Tenant, together with all taxes, assessments, charges and penalties added to or included within such cost. Tenant acknowledges that the Premises, the Building and/or the Project may become subject to the rationing of Utility services or
restrictions on Utility use as required by a public utility company, governmental agency or other similar entity having jurisdiction thereof. Tenant acknowledges and agrees that its tenancy and occupancy hereunder shall be subject to such rationing
or restrictions as may be imposed upon Landlord, Tenant, the Premises, the Building and/or the Project, and Tenant shall in no event be excused or relieved from any covenant or 

  

 9 

 
obligation to be kept or performed by Tenant by reason of any such rationing or restrictions. Tenant agrees to comply with energy conservation programs
implemented by Landlord by reason of rationing, restrictions or Laws. 
  

	 	5.2	Limitation of Landlord’s Liability for Interruption of Utilities 

  
 (a) Landlord shall not be liable for any loss, injury or damage to property caused by or resulting from any variation,
interruption, or failure of Utilities due to any cause whatsoever, or from failure to make any repairs or perform any maintenance. No temporary interruption or failure of such services incident to the making of repairs, alterations, improvements, or
due to accident, strike, or conditions or other events shall be deemed an eviction of Tenant or relieve Tenant from any of its obligations hereunder; provided, however, that Landlord shall give Tenant not less than forty-eight (48) hours’
notice of any interruption of Utilities planned in advance by Landlord. Landlord shall also use reasonable efforts to notify Tenant of any planned interruption of Utilities by any Utility service provider, provided that Landlord obtains actual
knowledge of such planned interruption. In no event shall Landlord be liable to Tenant for any damage to the Premises or for any loss, damage or injury to any property therein or thereon occasioned by bursting, rupture, leakage, failure or overflow
of any plumbing or other pipes (including, without limitation, water, steam, and/or refrigerant lines), sprinklers, tanks, drains, drinking fountains or washstands, or other similar cause in, above, upon or about the Premises, the Building or the
Project. 
  
 (b) Notwithstanding the provisions of Paragraph
5.2(a) above, if any Utility Services to the Premises are interrupted or interfered with as the result of the negligence or willful misconduct of any contractors engaged by Landlord to perform services at the Project, then Landlord shall use
commercially reasonable efforts to pursue any claims for compensation or reimbursement available to Landlord against such contractors to the extent of any losses suffered by Tenant and shall make any monies received available to Tenant after
allowance for Landlord’s costs of collection. In addition to the foregoing, if any policy of insurance maintained by Landlord with respect to the Premises provides coverage for losses incurred due to the failure of Utilities, then Landlord
shall make a claim under such policy to the extent of any losses suffered by Tenant, and shall make the proceeds received, if any, available to Tenant after allowance for Landlord’s costs of collection. 
  

	6.	LATE CHARGE 

  
 Notwithstanding any other provision of this Lease, Tenant hereby acknowledges that late payment to Landlord of Rent, or other amounts due hereunder will
cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. If any Rent or other sums due from Tenant are not received by Landlord or by Landlord’s designated agent when due,
and if Tenant does not cure such failure within five (5) days after the due date (the “Grace Period”), then Tenant shall pay to Landlord a late charge equal to five percent (5%) of such overdue amount (the “Late
Charge”), plus any costs and reasonable attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent and/or other charges when due hereunder; provided, however, that Tenant shall have the right to pay Rent during
the Grace Period only five (5) times during the Term and, after Tenant has paid Rent during the Grace Period an aggregate of five (5) times, Tenant shall pay to Landlord a Late 

  

 10 

 
Charge on any Rent or other sums due hereunder that are not received by Landlord or Landlord’s designated agent when due. Notwithstanding the foregoing,
if Tenant establishes and maintains throughout the Term a direct payment or debit arrangement with a bank or financial institution pursuant to which the Rent due hereunder is automatically paid to Landlord by electronic transfer on the first day of
each month, and if Tenant provides Landlord with evidence of such arrangement, then Landlord shall provide Tenant with notice of any late payment of Rent prior to the imposition of a Late Charge. Landlord and Tenant hereby agree that such Late
Charge represent a fair and reasonable estimate of the cost that Landlord will incur by reason of Tenant’s late payment and shall not be construed as a penalty. Landlord’s acceptance of such Late Charge shall not constitute a waiver of
Tenant’s default with respect to such overdue amount or estop Landlord from exercising any of the other rights and remedies granted under this Lease. 
  

									
					
	INITIALS:	 	 /s/ JAMES C. BUIE, JR.
	 	 	 	 	 	 /s/ A. GREG STURMER

	 	 	
	 	 	 	 	 	

	 	 	Landlord	 	 	 	 	 	Tenant

  

	7.	LETTER OF CREDIT 

  
 (a) Delivery of Letter of Credit. Tenant has previously delivered to Landlord the letter of credit (the “Letter of Credit”) in the
amount of
                                        
                                        
             described in the 901 Gateway Lease (as hereinafter defined). As more particularly described in the 901 Gateway Lease, the Letter of Credit serves as security for the full and
faithful performance of Tenant’s covenants and obligations under the 901 Gateway Lease and this Lease. Landlord shall have the right to draw upon the Letter of Credit and use the proceeds therefrom for the purposes specified in the 901 Gateway
Lease. The rights and obligations of the parties with respect to the Letter of Credit shall be as set forth in the 901 Gateway Lease. As used herein, the “901 Gateway Lease” means the Lease Agreement by and between Landlord and
Tenant, dated as of January 1, 2001, relating to certain premises (the “901 Gateway Premises”) commonly known as 901 Gateway Boulevard, South San Francisco, California, as more particularly described therein. 
  
 (b) Bifurcation of Letter of Credit. Notwithstanding anything to the
contrary contained herein or in the 901 Gateway Lease, if requested by Landlord at any time following the date of this Lease, Tenant shall cause the LC Issuing Bank (as defined in the 901 Gateway Lease) to bifurcate the Letter of Credit into two
separate letters of credit, one securing Tenant’s obligations under the 901 Gateway Lease and the other securing Tenant’s obligations under this Lease. Such bifurcated letters of credit shall each be in an amount specified by Landlord,
provided that the aggregate amount of such letters of credit shall equal the amount of the Letter of Credit immediately prior to such bifurcation. Concurrently with the bifurcation of the Letter of Credit, Landlord and Tenant shall enter into a
modification of the 901 Gateway Lease and a modification of this Lease, which modifications shall amend Paragraph 7 of the 901 Gateway Lease and this Paragraph 7 to provide for separate, stand-alone letter of credit provisions in the 901 Gateway
Lease and this Lease. 
  

 11 

	8.	POSSESSION 

  

	 	8.1	Tenant’s Right of Possession 

  
 Subject to Paragraph 8.2, Tenant shall be entitled to possession of the Premises upon the substantial completion of the Base Building Improvements.

  
 For the purposes of this Lease, the Base Building Improvements
shall be deemed to be “substantially completed” when Landlord’s Architect and Contractor have both certified in writing that the Base Building Improvements have been substantially completed in accordance with the plans and
specifications therefor, subject only to items of a “punch-list” nature which do not materially affect the use or functionality of the space. 
  

	 	8.2	Delay in Performance of Covenants Related to Base Building Improvements 

  
 Except as expressly provided in Paragraph 8.3 below, if for any reason whatsoever Landlord cannot perform any covenant
contained in this Lease or in any exhibit hereto relating to the design and construction of the Base Building Improvements, this Lease shall not be void or voidable and shall not entitle Tenant to terminate this Lease, nor shall Landlord, or
Landlord’s agents, advisors, employees, partners, shareholders, directors, invitees or independent contractors (collectively, “Landlord’s Agents”), be liable to Tenant for any loss or damage resulting therefrom, nor shall
such failure affect the obligations of Tenant under this Lease, including, without limitation, the obligation to pay Rent commencing on the Commencement Date. 
  

	 	8.3	Tenant’s Right to Rent Abatement 

  
 (a) Subject to Paragraph 8.3(b) below, if for any reason Landlord fails to complete the milestones set forth below (each, a “Milestone”)
on or before the outside date for performance specified below (each, a “Milestone Date”), and if as a direct result of such failure, Tenant’s Contractor is delayed in the substantial completion of the Tenant Improvements (as
defined within Exhibit B attached hereto) which delay would not have occurred but for Landlord’s failure to meet such Milestone Date, then Tenant shall be entitled to an abatement of Monthly Base Rent in an amount
equal to the proportionate Monthly Base Rent payable per day, multiplied by a number equal to one day for each day that Tenant’s Contractor has been so delayed by Landlord’s failure to meet such Milestone Dates. For the purposes herein,
the Tenant Improvements shall be deemed to be substantially completed on the earlier date to occur of: (i) the date Tenant occupies any portion of the Building, (ii) the date when the Tenant Improvements have been approved by the appropriate
governmental agency as being in accordance with its building code and the building permit issued for such improvements, as evidenced by the issuance of a certificate of occupancy or final building inspection approval, as applicable, and (iii) the
date that Tenant’s Architect and Tenant’s Contractor have both certified in writing that the Tenant Improvements have been substantially completed in accordance with the plans and specifications therefor, subject only to items of a
“punch-list” nature which do not materially affect the use or functionality of the space. The Milestones and Milestone Dates are as follows: 
  

			
	 Milestone

	  	Milestone Date

		
	Certificate from Landlord’s Architect that the foundation of the Building has been completed (“Initial Milestone”).	  	September 8, 2001
		
	Concrete for the metal deck located on the top floor of the Building has been poured (“Secondary Milestone”).	  	November 22, 2001

  

 12 

 (b) Notwithstanding anything to the contrary contained in Paragraph 8.3(a) above, if Landlord is delayed
in completing any Milestone due to Tenant Delays or Force Majeure Events (as hereinafter defined), the Milestone Dates shall be extended for a period equal to the length of such delay. As used herein, “Tenant Delays” means any
delays caused by Tenant or any employee, agent or representative of Tenant, including, without limitation, delays caused by (i) failure to furnish information in accordance with Exhibit A and/or Exhibit B of this Lease,
whichever is applicable; (ii) Tenant’s request for any special, long lead time materials or installations as part of the Tenant Improvements or the Tenant Requested Base Building Improvements (as defined in Exhibit A hereto);
(iii) Tenant’s changes in the Approved Plans (as defined in Exhibit B hereto); (iv) any changes initiated by reason of the disapproval of any plans or drawings or any cost proposals or authorizations resulting in the preparation
of revised plans, drawings, cost proposals or authorizations; (v) field changes to construction work; (vi) the delivery, installation or completion of the Tenant Improvements work performed by Contractor (as defined in Exhibit
B hereto); (vii) Tenant’s request for any Tenant Requested Base Building Improvements; or (viii) any other act or omission of Tenant. As used herein, “Force Majeure Events” means strikes, embargoes, governmental
regulations, acts of God, war, civil commotion or other strife, and other events beyond the reasonable control of the party whose performance is affected thereby. 
  

	9.	USE OF PREMISES  

  

	 	9.1	Permitted Use 

  
 (a) The use of the Premises by Tenant and Tenant’s agents, advisors, employees, partners, shareholders, directors, invitees and independent
contractors (collectively, “Tenant’s Agents”) shall be solely for the Permitted Use specified in the Basic Lease Information and for no other use. Tenant shall not permit any objectionable or unpleasant smoke, dust, gas, noise
or vibration to emanate from or near the Premises, and shall use its best efforts to prevent any objectionable odor from emanating from or near the Premises. Tenant shall strictly comply with the measures set forth on Exhibit
C hereto and any additional measures reasonably required by Landlord from time to time to eliminate the emanation of objectionable odors. Tenant shall promptly provide Landlord with copies of all permits issued to Tenant by the
Bay Area Air Quality Management District (the “Air Management District”) and any other governmental agency responsible for or having jurisdiction over matters related to air quality, together with copies of all correspondence
between Tenant and the Air Management District or such other agencies. Tenant acknowledges that The Gateway, the real estate development in which the Project is located, is a first-class 

  

 13 

 
office and R&D campus and that “objectionable odors” is a subjective standard. Accordingly, Tenant agrees that if odors in the area of the
Building lead to complaints from other tenants and occupants of The Gateway, and if Landlord reasonably determines, based upon observation and/or a review of Tenant’s records, that such odors emanated from the Premises, Tenant shall promptly
use its best efforts to correct the situation at Tenant’s sole cost and expense. Such measures to be taken by Tenant shall include, without limitation, the hiring of special consultants and the making of capital improvements to the Premises.
Tenant shall make its laboratory records available to Landlord for review in connection with any complaints by tenants or occupants of the Gateway and as otherwise reasonably requested by Landlord. Any failure of Tenant to comply with its
obligations under this Paragraph 9.1(a) shall constitute an immediate Default under this Lease. 
  
 (b) The Premises shall not be used to create any nuisance or trespass, for any illegal purpose, for any purpose not permitted by Laws, for any purpose
that would invalidate the insurance or increase the premiums for insurance on the Premises, the Building or the Project or for any purpose or in any manner that would unreasonably interfere with other tenants’ use or occupancy of the Project.
Tenant agrees to pay to Landlord, as Additional Rent, any increases in premiums on policies resulting from Tenant’s Permitted Use or any other use or action by Tenant or Tenant’s Agents which increases Landlord’s premiums or requires
additional coverage by Landlord to insure the Premises. Tenant agrees not to overload the floor(s) of the Building. 
  

	 	9.2	Compliance with Governmental Regulations and Private Restrictions 

  
 (a) Subject to the terms and conditions of the Lease, Landlord covenants that the Base Building Improvements shall be
constructed in compliance with all applicable building code requirements in effect and actively being enforced by the City of South San Francisco (the “City”) on the date the building permits are issued to the Contractor therefor
and substantially in accordance with the Base Building Plans and Specifications. Any claims by Tenant under this Paragraph 9.2 shall be made in writing not later than one (1) year after the Commencement Date of the Lease. In the event Tenant fails
to deliver a written claim to Landlord on or before such date, then Landlord shall be conclusively deemed to have satisfied its obligations under this paragraph. The covenants contained in this paragraph are subject to Paragraph 39 below of the
Lease and are made specifically and exclusively for the benefit of the original Tenant and any assignee or sublessee under a Permitted Transfer pursuant to Paragraph 23.4 below. 
  
 (b) Tenant and Tenant’s Agents shall, at Tenant’s expense, faithfully observe and comply with (1) all municipal,
state and federal laws, statutes, codes, rules, regulations, ordinances, requirements, and orders (collectively, “Laws”), now in force or which may hereafter be in force pertaining to the Premises or Tenant’s use of the
Premises, the Building or the Project, including, without limitation, any Laws requiring installation of fire sprinkler systems, seismic reinforcement and related alterations, whether substantial in cost or otherwise; provided, however; that: except
as provided in Paragraph 9.3 below, Tenant shall not be required to make or, except as provided in Paragraph 4 above, pay for, structural changes to the Premises or the Building not related to Tenant’s specific use of the Premises unless the
requirement for such changes is imposed as a result of any improvements or additions made or proposed to be made at Tenant’s request; (2) all recorded covenants, conditions and restrictions affecting the Project (“Private
Restrictions”) now in force or which may hereafter be in force, Landlord hereby 

  

 14 

 
specifically reserving the right to hereafter adopt such Private Restrictions and to impose the same on the Project or any portion thereof, provided that
such Private Restrictions adopted after the date hereof shall not unreasonably impair Tenant’s use of the Premises for any Permitted Use; and (3) any and all rules and regulations set forth in Exhibit D
and any other rules and regulations now or hereafter promulgated by Landlord (collectively, the “Rules and Regulations”). Without limiting the generality of the foregoing, Tenant hereby covenants and agrees for itself, its
successors and assigns, and all persons claiming under or through it, that this Lease is made and accepted upon and subject to the condition that there shall be no discrimination against, or segregation of, any person or group of persons on account
of race, color, creed, religion, sex, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises herein leased, nor shall Tenant, or any person claiming under or through
it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein leased. The
judgment of any court of competent jurisdiction, or the admission of Tenant in any action or proceeding against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any such Laws or Private Restrictions, shall be conclusive
of that fact as between Landlord and Tenant. 
  

	 	9.3	Compliance with Americans with Disabilities Act 

  
 Landlord and Tenant hereby agree and acknowledge that the Premises, the Building and/or the Project may be subject to, among other Laws, the requirements
of the Americans with Disabilities Act, a federal law codified at 42 U.S.C. 12101 et seq., including, but not limited to, Title III thereof, and all regulations and guidelines related thereto, together with any and all laws, rules,
regulations, ordinances, codes and statutes now or hereafter enacted by local or state agencies having jurisdiction thereof, including all requirements of Title 24 of the State of California, as the same may be in effect on the date of this Lease
and may be hereafter modified, amended or supplemented (collectively, the “ADA”). Landlord shall cause the Base Building Improvements to be constructed in compliance with the ADA as currently administered by the City. Any Tenant
Improvements to be constructed hereunder or Alterations (as hereinafter defined) made during the Term shall be in compliance with the requirements of the ADA, and all costs incurred for purposes of compliance therewith shall be a part of and
included in the costs of the Tenant Improvements or the Alterations, as applicable. Tenant shall be solely responsible for conducting its own independent investigation of this matter and for ensuring that the design of all Tenant Improvements
strictly complies with all requirements of the ADA. Subject to reimbursement pursuant to Paragraph 4 above, if any barrier removal work or other work is required to the Building, the Common Areas or the Project under the ADA, then such work shall be
the responsibility of Landlord; provided, however, that if such work is required under the ADA as a result of Tenant’s use of the Premises or any work or Alteration made to the Premises by or on behalf of Tenant, then such work shall be
performed by Landlord at the sole cost and expense of Tenant; and provided, further, that if any such work is required under the ADA as a result of another tenant’s specific use of its premises or improvements made by another tenant to its
premises, then the cost of such work shall be solely chargeable to such tenant and Tenant shall have no responsibility therefor. Except as otherwise expressly provided in this provision, Tenant shall be responsible at its sole cost and expense for
fully and faithfully complying with all applicable requirements of the ADA, including, without limitation, not discriminating against any disabled persons in the operation of Tenant’s business in or about the Premises, and offering 

  

 15 

 
or otherwise providing auxiliary aids and services as, and when, required by the ADA. Within ten (10) days after receipt, Tenant shall advise Landlord in
writing, and provide Landlord with copies of (as applicable), any notices alleging violation of the ADA relating to any portion of the Premises, the Building or the Project; any claims made or threatened orally or in writing regarding noncompliance
with the ADA and relating to any portion of the Premises, the Building or the Project; or any governmental or regulatory actions or investigations instituted or threatened regarding noncompliance with the ADA and relating to any portion of the
Premises, the Building or the Project. Tenant shall and hereby agrees to protect, defend (with counsel acceptable to Landlord) and hold Landlord and Landlord’s Agents harmless and indemnify Landlord and Landlord’s Agents from and against
all liabilities, damages, claims, losses, penalties, judgments, charges and expenses (including attorneys’ fees, costs of court and expenses necessary in the prosecution or defense of any litigation including the enforcement of this provision)
arising from or in any way related to, directly or indirectly, Tenant’s or Tenant’s Agents’ violation or alleged violation of the ADA. Landlord shall and hereby agrees to protect, defend (with counsel acceptable to Tenant) and hold
Tenant and Tenant’s Agents harmless and indemnify Tenant and Tenant’s Agents from and against all liabilities, damages, claims, losses, penalties, judgments, charges and expenses (including attorneys’ fees, costs of court and expenses
necessary in the prosecution or defense of any litigation including the enforcement of this provision) arising from or in any way related to, directly or indirectly, Landlord’s failure to have the Base Building Improvements constructed in
compliance with the ADA as currently administered by the City. 
  

	10.	ACCEPTANCE OF PREMISES 

  
 By taking possession of the Premises hereunder Tenant accepts the Premises as suitable for Tenant’s intended use and as being in good and sanitary
operating order, condition and repair, AS IS, and without representation or warranty by Landlord as to the condition, use or occupancy which may be made thereof, except for Landlord’s express obligations described in Exhibit A,
and Landlord’s covenant set forth in Paragraph 9.2(a) above. Any exceptions to the foregoing must be by written agreement executed by Landlord and Tenant. 
  

	11.	SURRENDER 

  

	 	11.1	Surrender at Expiration or Termination 

  
 Tenant agrees that on the last day of the Term, or on the sooner termination of this Lease, Tenant shall surrender the Premises to Landlord (i) in good
condition and repair (damage by acts of God, fire, and normal wear and tear excepted), but with all interior walls painted or cleaned so they appear painted and, where appropriate, patched, any carpets cleaned, all floors cleaned and waxed, and all
plumbing fixtures in good condition and working order and, where appropriate, capped, and (ii) otherwise in accordance with Paragraph 32.9. Normal wear and tear shall not include any damage or deterioration that would have been prevented by proper
maintenance by Tenant, or Tenant otherwise performing all of its obligations under this Lease. 
  

 16 

	 	11.2	Removal Obligations and Abandonment of Tenant’s Property 

  

On or before the expiration or sooner termination of this Lease, Tenant shall, in accordance with this Paragraph 11, and at Tenant’s sole cost and
expense, remove, and repair any damage caused by such removal, (A) all of Tenant’s Property (as hereinafter defined) and Tenant’s signage from the Premises, the Building and the Project, and (B) all Tenant Improvements and Alterations
required to be removed pursuant to Paragraph 12 below and Section B.5 of Exhibit B hereto, whichever is applicable. In addition to the foregoing, upon the written request of Landlord, which request may be given at any time prior to the
expiration or sooner termination of this Lease, Tenant shall, at its sole cost and expense, on the expiration or sooner termination of this Lease, remove the Bridge, if any, restore the facades of the Building and the 901 Gateway Premises to a
condition required by Landlord, and repair any damage caused by such removal and restoration. Any of Tenant’s Property not so removed by Tenant as required herein shall be deemed abandoned and may be stored, removed, and disposed of by Landlord
at Tenant’s expense, and Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and disposition of such property; provided, however, that Tenant shall remain liable to Landlord for all costs incurred
in storing and disposing of such abandoned property of Tenant. All Tenant Improvements and Alterations except those which Tenant is required to remove pursuant to Paragraph 12 below hereto shall remain in the Premises as the property of Landlord.

  

	 	11.3	Indemnification 

  
 If the Premises are not surrendered at the end of the Term or sooner termination of this Lease, and in accordance with the provisions of this Paragraph 11
and Paragraph 32.9 below, Tenant shall indemnify, defend and hold Landlord harmless from and against any and all loss or liability resulting from delay by Tenant in so surrendering the Premises including, without limitation, any loss or liability
resulting from any claim against Landlord made by any succeeding tenant or prospective tenant founded on or
resulting from such delay and losses to Landlord due to lost opportunities to lease any portion of the Premises to any such succeeding tenant or prospective tenant, together with, in each case, reasonable attorneys’ fees and costs. 

 

	12.	ALTERATIONS AND ADDITIONS 

  

	 	12.1	Landlord’s Consent Required 

  
 Tenant shall not make, or permit to be made, any alteration, addition or improvement (hereinafter referred to individually as an
“Alteration” and collectively as the “Alterations”) to the Premises or any part thereof without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed;
provided, however, that Landlord shall have the right in its sole and absolute discretion to consent or to withhold its consent to any Alteration which affects the structural portions of the Premises, the Building or the Project or the Systems
serving the Premises, the Building and/or the Project or any portion thereof. 
  

 17 

	 	12.2	Alterations Permitted Without Landlord’s Consent; Removal Requirements 

  
 Notwithstanding the foregoing, but subject to the conditions set forth below, Tenant may, without Landlord’s consent,
make Alterations within the Premises, provided that (i) such Alterations do not affect the structural portions of the Premises, the Building or the Project or the Systems, and (ii) the cost, on an individual project basis, of any Alteration or
related series of Alterations is less than Thirty Thousand Dollars ($30,000.00), and all Alterations in the aggregate do not exceed Two Hundred Thirty Thousand Dollars ($230,000.00) over the Term. The Alterations made by Tenant without the consent
of Landlord in accordance with this Paragraph 12.2 shall be herein referred to as the “Permitted Alterations.” 
  

	 	12.3	Alterations at Tenant’s Expense 

  
 Any Alteration to the Premises shall be at Tenant’s sole cost and expense, in compliance with all applicable Laws and all requirements requested by
Landlord, including, without limitation, the requirements of any insurer providing coverage for the Premises or the Project or any part thereof, and in accordance with plans and specifications approved in writing by Landlord (except for Permitted
Alterations), which approval shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, with respect to Alterations that may be made without Landlord’s prior consent as permitted above, Landlord agrees that
Tenant shall not be required to submit plans and specifications for prior approval of the Landlord and that Landlord shall not require prior approval of the installing contractor; provided, however, that if Tenant does not obtain the prior approval
of plans and specifications for any Alteration, then subject to the terms of Paragraph 12.4(b) below, Landlord may, by notice to Tenant given not later than ninety (90) days prior to the Expiration Date (except in the event of a termination of this
Lease prior to the scheduled Expiration Date, in which event no advance notice shall be required), require Tenant, at Tenant’s expense, to remove, and repair any damage caused by removal of, any and all such Alterations. If Tenant does not
obtain Landlord’s prior consent as to the installing contractor, Tenant shall be responsible for maintaining harmonious labor relations with all contractors and service providers servicing the Premises, Building and/or Project. In addition,
with respect to any Permitted Alterations made without Landlord’s prior consent as permitted above, Tenant agrees to meet with Landlord, at Landlord’s request, not more than once in every calendar year, to discuss any such Permitted
Alterations that have been made to the Premises (each such meeting being herein referred to as an “Alterations Meeting”). Tenant shall provide to Landlord within forty five (45) days after written request as-built plans and
specifications for any Alterations (including, without limitation, any Permitted Alterations) made by Tenant to the Premises. Notwithstanding anything in this Lease to the contrary, any approval by Landlord of any drawings, plans or specifications
prepared on behalf of Tenant shall not in any way bind Landlord, create any responsibility or liability on the part of Landlord for the completeness of the same, their design sufficiency or compliance with applicable statutes, ordinances or
regulations or constitute a representation or warranty by Landlord as to the adequacy or sufficiency of such drawings, plans or specifications, or the improvements to which they relate, but such approval shall merely evidence the consent of Landlord
to such drawings, plans or specifications. 
  

 18 

	 	12.4	Requirements of Request for Approval 

  
 (a) Any Alterations requiring the prior consent of Landlord shall contain a request that Landlord specify in writing to Tenant those Alterations that
Tenant will be required to remove in accordance with Paragraph 11.1 upon expiration or sooner termination of this Lease. Upon receipt of such request, Landlord shall make such determination and respond to Tenant within twenty (20) business days of
such request. Landlord’s failure to respond within such time shall be deemed to mean that Tenant shall not be required to remove such Alterations upon the expiration or sooner termination of this Lease. 
  
 (b) In the event Tenant constructs or installs any Permitted Alterations
without the consent of Landlord, then Tenant shall have the right at the next succeeding Alterations Meeting to request that Landlord specify in writing whether Tenant will be required to remove all or any portion of such Permitted Alterations upon
expiration or sooner termination of this Lease. Upon receipt of such request, Landlord shall make such determination and respond to Tenant within twenty (20) business days of such request. Landlord’s failure to respond within such time shall
conclusively be deemed to be an irrevocable waiver of Landlord’s right to demand their removal. 
  

	 	12.5	Permits Required; Insurance Required 

  

	 	12.5.1	Permits 

  
 Before Alterations may begin, valid building permits or other permits or licenses required must be furnished to Landlord, and, once the Alterations begin,
Tenant will diligently and continuously pursue their completion. Landlord may monitor construction of the Alterations, either through its own employees or through a construction manager retained by Landlord. 
  

	 	12.5.2	Insurance 

  
 Tenant shall maintain during the course of any construction (including, without limitation, during the construction of the Tenant Improvements and any
Alterations), at its sole cost and expense, builders’ risk insurance for the amount of the completed value of the Alterations and Tenant Improvements on an all-risk non-reporting form covering all improvements under construction, including
building materials, and other insurance in amounts and against such risks as Landlord shall reasonably require in connection with the Alterations and Tenant Improvements., including, without limitation, naming Landlord and Landlord’s lender as
loss payee under any such policy. In addition to and without limitation on the generality of the foregoing, Tenant shall ensure that its contractor(s) procure and maintain in full force and effect during the course of construction a “broad
form” commercial general liability and property damage policy of insurance naming Landlord, Tenant and Landlord’s lenders as additional insureds. The minimum limit of coverage of the aforesaid policy shall be in the amount of not less than
Three Million Dollars ($3,000,000.00) for injury or death of one person in any one accident or occurrence and in the amount of not less than Three Million Dollars ($3,000,000.00) for injury or death of more than one person in any one accident or
occurrence, and shall contain a severability of interest clause or a cross liability endorsement. Such insurance shall further insure Landlord and Tenant against liability for property damage of at least One Million Dollars ($1,000,000.00).

  

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	 	12.6	Title to Improvements; Removal Rights; Financing 

  
 Except as otherwise expressly stated herein or agreed to in writing between the parties, the Tenant Improvements actually paid for by Tenant and all
Alterations, including, but not limited to, heating, lighting, electrical, air conditioning, fixed partitioning, drapery, wall covering and paneling, built-in cabinet work and carpeting installations made by Tenant, together with all property that
has become an integral part of the Premises or the Building, shall upon installation become the property of Tenant; provided, however, that title to all such Tenant Improvements, Alterations and property shall automatically transfer to Landlord upon
the expiration of the Term or the sooner termination of this Lease without the payment of any consideration or the execution of any transfer documents. Notwithstanding the foregoing, Tenant shall retain title to and ownership of Tenant’s
Property at all times. For purposes of this Paragraph 12.6 and Paragraph 49.4.1 below, Landlord shall be deemed to have paid for those Tenant Improvements funded out of the Initial Tenant Improvement Allowance (as hereinafter defined) and Tenant
shall be deemed to have paid for the remaining Tenant Improvements, including any Tenant Improvements funded out of the Deferred Allowance. As used herein, “Initial Tenant Improvement Allowance” means the initial $46.70 per square foot of
the Tenant Improvement Allowance provided by Landlord hereunder. 
  

	 	12.7	Computer, Utility and Telecommunications Equipment 

  
 No private telephone systems, utilities and/or other related computer, utility or telecommunications equipment or lines may be installed without
Landlord’s prior written consent, which consent shall not be unreasonably withheld. If Landlord gives such consent, all equipment must be installed within the Premises and, unless Landlord, at the time of installation, notifies Tenant in
writing that removal will be required, left in the Premises and surrendered to Landlord upon the expiration or sooner termination of this Lease. 
  

	 	12.8	Notice and Opportunity to Post Notice of Nonresponsibility 

  
 Tenant agrees not to proceed to make any Alterations, notwithstanding consent from Landlord to do so, without fifteen (15) days’ prior written notice
to Landlord, in order that Landlord may post appropriate notices to avoid any liability to contractors or material suppliers for payment for Tenant’s improvements. Tenant will at all times permit such notices to be posted and to remain posted
until the completion of work. 
  

	13.	MAINTENANCE AND REPAIRS OF PREMISES 

  

	 	13.1	Maintenance by Tenant 

  
 Subject to the provisions of Paragraph 13.2, 21 and 22 below, throughout the Term, Tenant shall, at its sole expense, (1) keep and maintain in good order
and condition the Building and the Premises and repair the Building and the Premises and every part thereof, including interior and exterior glass, windows, window frames and casements, interior and exterior doors and door frames and door closers;
interior and exterior lighting (including, without limitation, light bulbs and ballasts), the roof covering; the Systems serving the Premises and the Building; interior and exterior signage, interior demising walls and partitions, equipment,
interior painting and interior walls and floors, and the roll-up doors, ramps and dock equipment, including, without limitation, 

  

 20 

 
dock bumpers, dock plates, dock seals, dock levelers and dock lights located in or on the Premises (excepting only those portions of the Building or the
Project to be maintained by Landlord, as provided in Paragraph 13.2 below), (2) furnish all expendables, including light bulbs, paper goods and soaps, used in the Premises, and (3) keep and maintain in good order and condition and repair and replace
all of Tenant’s security systems in or about or serving the Premises. Tenant shall not do nor shall Tenant allow Tenant’s Agents to do anything to cause any damage, deterioration or unsightliness to the Premises, the Building or the
Project. Tenant shall perform its obligations under this Paragraph 13.1 in accordance with maintenance and repair standards adopted by Landlord from time to time for the Project. Tenant shall cause to be furnished to Landlord on not less than a
quarterly basis maintenance reports on all Systems and the roof of the Building prepared by a qualified vendor or consultant, and Tenant shall promptly perform any maintenance tasks recommended by such reports or otherwise required by Landlord to
cause the Premises and the Systems to comply with Landlord’s maintenance and repair standards. 
  

	 	13.2	Maintenance by Landlord 

  
 Subject to the provisions of Paragraphs 13.1, 21 and 22, and further subject to Tenant’s obligation under Paragraph 4 to reimburse Landlord, in the
form of Additional Rent, for Tenant’s Proportionate Share(s) of the Project and the Building, as applicable, of the cost and expense of the following items, Landlord agrees to repair and maintain the Common Areas in good order and condition,
including, without limitation, the Parking Areas, pavement, landscaping, sprinkler systems, sidewalks, driveways, curbs, and lighting systems in the Common Areas. Subject to the provisions of Paragraphs 13.1, 21 and 22, Landlord, at its own cost and
expense, agrees to repair and maintain the following item: the structural portions of the roof (specifically excluding the roof coverings), the foundation, the footings, the floor slab, and the load bearing walls and exterior walls of the Building
(excluding any glass and any routine maintenance, including, without limitation, any painting, sealing, patching and waterproofing of such walls). 
  

	 	13.3	Landlord’s Right to Perform Tenant’s Obligations 

  
 Notwithstanding anything in this Paragraph 13 to the contrary, Landlord shall have the right to either repair or to require Tenant to repair any damage to
any portion of the Premises, the Building and/or the Project caused by or created due to any act, omission, negligence or willful misconduct of Tenant or Tenant’s Agents and to restore the Premises, the Building and/or the Project, as
applicable, to the condition existing prior to the occurrence of such damage; provided, however, that in the event Landlord elects to perform such repair and restoration work, Tenant shall reimburse Landlord upon demand for all costs and expenses
incurred by Landlord in connection therewith. Landlord’s obligation hereunder to repair and maintain is subject to the condition precedent that Landlord shall have received written notice of the need for such repairs and maintenance and a
reasonable time to perform such repair and maintenance. Tenant shall promptly report in writing to Landlord any defective condition which Landlord is required to repair, and failure to so report such defects shall make Tenant responsible to Landlord
for the costs and expenses of repairing any Preventable Damage occurring after the date Tenant obtains actual knowledge of such defective condition and any liability incurred by Landlord by reason of Tenant’s failure to notify Landlord of such
defective condition in a timely manner as provided herein. As used herein, “Preventable Damage” means any damage or deterioration which could 

  

 21 

 
have been prevented had Landlord received timely notice of the defective condition. Nothing contained herein shall be deemed or construed to limit
Tenant’s obligations under Paragraph 16 below. 
  

	 	13.4	Tenant’s Waiver of Rights 

  
 Tenant hereby expressly waives all rights to make repairs at the expense of Landlord or to terminate this Lease, as provided for in California Civil Code
Sections 1941 and 1942, and 1932(1), respectively, and any similar or successor statute or law in effect or any amendment thereof during the Term. 
  

	14.	LANDLORD’S INSURANCE 

  

At all times during the Term of this Lease, Landlord shall purchase and keep in force “all risk” property insurance covering the Base
Building Improvements, the Tenant Improvements and all Alterations made to the Premises by Tenant in accordance with the terms of Paragraph 12 above, in accordance with Landlord’s customary insurance program for comparable properties. Tenant
shall provide Landlord with such information as may be requested by Landlord or its insurers concerning the value of the Tenant Improvements or any Alterations. Tenant acknowledges and agrees that Landlord shall have no obligation to maintain
property insurance covering any alterations, additions or improvements made to the Premises other than Alterations made in strict accordance with Paragraph 12 (such other alterations, additions or improvements being herein referred to as
“Unpermitted Alterations”), and Tenant hereby agrees to indemnify and hold harmless Landlord and Landlord’s Agents from and against any and all Losses (as hereinafter defined) resulting from or arising out of the making of any
such Unpermitted Alterations. Tenant shall, at its sole cost and expense, comply with any and all reasonable requirements pertaining to the Premises, the Building and the Project of any insurer necessary for the maintenance of reasonable property
damage and commercial general liability insurance, covering the Building and the Project. Landlord, at Tenant’s cost, may maintain “Loss of Rents” insurance, insuring that the Rent will be paid in a timely manner to Landlord for a
period of at least twelve (12) months if the Building or any portion thereof are destroyed or rendered unusable or inaccessible by any cause insured against under this Lease. 
  

	15.	TENANT’S INSURANCE 

  

	 	15.1	Commercial General Liability Insurance 

  
 At all times during the Term of this Lease, Tenant shall, at Tenant’s expense, secure and keep in force a Commercial General Liability insurance
policy covering the Premises, insuring Tenant, and naming Landlord and its lenders as additional insureds, against liability arising out of the ownership, use, occupancy or maintenance of the Premises. The minimum limit of coverage of such policy
shall be in the amount of not less than Three Million Dollars ($3,000,000.00) for each occurrence combined single limit for bodily injury and property damage, shall include contractual liability coverage (which shall include coverage for
Tenant’s indemnification obligations in this Lease, provided that the amount of such coverage shall not be construed to limit Tenant’s indemnification obligations hereunder), and shall contain severability of interests and cross liability
coverage clauses and/or endorsements. Such insurance shall be 

  

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endorsed to be primary and non-contributory to any insurance Landlord may carry. Landlord may from time to time require reasonable increases in any such
limits if Landlord believes that additional coverage is necessary or desirable. The limit of any insurance shall not limit the liability of Tenant hereunder. No policy maintained by Tenant under this Paragraph 15.1 shall contain a deductible greater
than Five Thousand Dollars ($5,000.00). Such policies of insurance shall be issued as primary policies and not contributing with or in excess of coverage that Landlord may carry. 
  

	 	15.2	Property Insurance 

  
 At all times during the Term of this Lease, Tenant shall, at Tenant’s expense, maintain in full force and effect special form property insurance on
all of its personal property, possessions, furniture, furnishings, trade or business fixtures, equipment and such other items listed on Exhibit F (collectively, “Tenant’s Property”) located on the Premises. Such
special form property insurance shall be on a full replacement cost basis and shall be written to cover all risks of direct loss or damage, including, but not be limited to, theft, water damage and sprinkler leakage. No such policy shall contain a
deductible greater than Five Thousand Dollars ($5,000.00). During the Term of this Lease the proceeds from any such policy or policies of insurance shall be used for the repair or replacement of Tenant’s Property. Landlord shall have no
interest in the insurance upon Tenant’s Property and will sign all documents reasonably necessary in connection with the settlement of any claim or loss by Tenant. Landlord will not carry insurance on Tenant’s Property. 
  

	 	15.3	Worker’s Compensation Insurance; Employer’s Liability Insurance 

  
 At all times during the Term of this Lease, Tenant shall, at Tenant’s expense, maintain in full force and effect
worker’s compensation insurance with not less than the minimum limits required by Law, and employer’s liability insurance with a minimum limit of coverage of One Million Dollars ($1,000,000) per accident. 
  

	 	15.4	Business Interruption Insurance 

  
 Tenant shall, at all times during the Term of this Lease, maintain in full force and effect loss of income and extra expense insurance in such amounts as
will reimburse Tenant for direct or indirect loss of earnings or extra expenses attributable to or resulting from all perils commonly insured under a special form policy of property insurance. 
  

	 	15.5	Insurance Standards and Evidence of Coverage 

  
 All insurance required to be carried by Tenant hereunder shall be maintained with insurance companies authorized to do business in the State of California
for the issuance of the applicable type of insurance coverage and rated A:XIII or better in Best’s Key Rating Guide. Notwithstanding the foregoing, Landlord hereby approves General Star Indemnity as the carrier of the insurance required under
Paragraph 15.1 above, provided that General Star Indemnity shall at all times during the Term maintain a Best’s Key Rating of not less than A++:VIII. Tenant shall deliver to Landlord certificates of insurance and true and complete copies of any
and all endorsements required herein for all insurance required to be maintained by Tenant hereunder at the time of execution of this Lease by Tenant. Tenant shall at least thirty (30) days 

  

 23 

 
prior to expiration of each policy, furnish Landlord and the other parties named as additional insureds with certificates of renewal or “binders”
thereof. Each certificate shall expressly provide that such policies shall not be cancelable except after thirty (30) days’ prior written notice to Landlord and the other parties named as additional insureds as required in this Lease (except
for cancellation for nonpayment of premium, in which event cancellation shall not take effect until at least ten (10) days’ notice has been given to Landlord and the parties named as additional insureds hereunder). 
  

	16.	INDEMNIFICATION  

  

	 	16.1	Of Landlord 

  
 Tenant shall indemnify and hold harmless Landlord and Landlord’s advisors, employees, partners, shareholders and directors against and from any and
all claims, liabilities, judgments, costs, demands, causes of action and expenses (including, without limitation, reasonable attorneys’ fees) (collectively, “Losses”) arising from (1) the use of the Premises, the Building or
the Project by Tenant or Tenant’s Agents, or from any activity done, permitted or suffered by Tenant or Tenant’s Agents in or about the Premises, the Building or the Project, and (2) any act, neglect, fault, willful misconduct or omission
of Tenant or Tenant’s Agents, or from any breach or default in the terms of this Lease by Tenant or Tenant’s Agents, and (3) any action or proceeding brought on account of any matter in items (1) or (2); provided, however, that in no event
shall Tenant be required to indemnify Landlord against any claims, demands or losses resulting from any failure of Landlord to observe any of the terms and conditions of this Lease, including, without limitation, the covenant set forth in Paragraph
9.2(a) above, in each case to the extent such failure or breach has persisted for an unreasonable period of time after written notice of such failure or breach. If any action or proceeding is brought against Landlord by reason of any such claim,
upon notice from Landlord, Tenant shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. As a material part of the consideration to Landlord, Tenant hereby releases Landlord and Landlord’s Agents from
responsibility for, waives its entire claim of recovery for and assumes all risk of (i) damage to property or injury to persons in or about the Premises, the Building or the Project from any cause whatsoever (except that which is caused by the gross
negligence or willful misconduct of Landlord or Landlord’s Agents or by the failure of Landlord to observe any of the terms and conditions of this Lease, if such failure has persisted for an unreasonable period of time after written notice of
such failure), or (ii) loss resulting from business interruption or loss of income at the Premises. The obligations of Tenant under this Paragraph 16.1 shall survive the expiration or earlier termination of this Lease. 
  

	 	16.2	Of Tenant 

  
 Landlord shall indemnify and hold harmless Tenant and Tenant’s employees, partners, sharehorders and directors against and from any and all Losses
relating to the Project and arising from (1) the gross negligence or willful misconduct of Landlord or Landlord’s Agents, (2) the failure of Landlord to observe any of the terms and conditions of this Lease, if such failure has persisted for an
unreasonable period of time after written notice of such failure, and (3) any action or proceeding brought on account of any matter in items (1) or (2). If any action or proceeding is brought against Tenant by reason of any such claim, upon notice
from Tenant, 

  

 24 

 
Landlord shall defend the same at Landlord’s expense by counsel reasonably satisfactory to Landlord. The obligations of Landlord under this Paragraph
16.2 shall survive any termination of this Lease. 
  

	 	16.3	No Impairment of lnsurance 

  
 The foregoing indemnity shall not relieve any insurance carrier of its obligations under any policies required to be carried by either party pursuant to
this Lease, to the extent that such policies cover the peril or occurrence that results in the claim that is subject to the foregoing indemnity. 
  

	17.	SUBROGATION 

  
 Landlord and Tenant hereby mutually waive any claim against the other and its Agents for any loss or damage to any of their property located on or about
the Premises, the Building or the Project that is caused by or results from perils covered by the property insurance required to be carried by the respective parties in accordance with Paragraphs 14 and 15 of this Lease, whether or not due to the
negligence of the other party or its Agents. Because the foregoing waivers will preclude the assignment of any claim by way of subrogation to an insurance company or any other person, each party now agrees to immediately give to its insurer written
notice of the terms of these mutual waivers and shall have their insurance policies endorsed to prevent the invalidation of the insurance coverage because of these waivers. Nothing in this Paragraph 17 shall relieve a party of liability to the other
for failure to carry insurance required by this Lease. 
  

	18.	SIGNS 

  
 Tenant shall not place or permit to be placed in, upon, or about the Premises, the Building or the Project any exterior lights, decorations, balloons,
flags, pennants, banners, advertisements or notices, or erect or install any signs, windows or door lettering, placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises without obtaining
Landlord’s prior written consent or without complying with Landlord’s signage program, as the same may be modified by Landlord from time to time, and with all applicable Laws, and will not conduct, or permit to be conducted, any sale by
auction on the Premises or otherwise on the Project. Tenant shall remove any sign, advertisement or notice placed on the Premises, the Building or the Project by Tenant upon the expiration of the Term or sooner termination of this Lease, and Tenant
shall repair any damage or injury to the Premises, the Building or the Project caused thereby, all at Tenant’s expense. If any signs are not removed, or necessary repairs not made, Landlord shall have the right to remove the signs and repair
any damage or injury to the Premises, the Building or the Project at Tenant’s sole cost and expense. 
  

	19.	FREE FROM LIENS 

  
 Tenant shall keep the Premises, the Building and the Project free from any liens arising out of any work performed, material furnished or obligations
incurred by or for Tenant in accordance with the provisions of this Paragraph 19. In the event that Tenant shall not, within ten (10) days following the imposition of any such lien, cause the lien to be released of record by payment or posting of a
proper bond, Landlord shall have in addition to all other remedies provided herein and by law the right but not the obligation to cause same to be released by such means as it shall 

  

 25 

 
deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and all expenses incurred by it in connection therewith
(including, without limitation, reasonable attorneys’ fees) shall be payable to Landlord by Tenant upon demand. Landlord shall have the right at all times to post and keep posted on the Premises any notices permitted or required by law or that
Landlord shall deem proper for the protection of Landlord, the Premises, the Building and the Project, from mechanics’ and materialmen’s liens. Tenant agrees not to proceed to perform any repairs or construction on the Premises without
fifteen (15) days’ prior written notice to Landlord in order that Landlord may post appropriate notices to avoid any liability to contractors or material suppliers for payment for Tenant’s work. 
  

	20.	ENTRY BY LANDLORD 

  
 Tenant shall permit Landlord and Landlord’s Agents to enter into and upon the Premises at all reasonable times upon twenty-four (24) hours’
notice (except in the case of an emergency, in which event no advance notice shall be required) for the purpose of inspecting the same or showing the Premises to prospective purchasers, lenders or tenants or to alter, improve, maintain and repair
the Premises or the Building as required or permitted of Landlord under the terms hereof, or for any other reasonable business purpose, without any rebate of Rent and without any liability to Tenant for any loss of occupation or quiet enjoyment of
the Premises thereby occasioned; and Tenant shall permit Landlord to post notices of non-responsibility and ordinary “for sale” or “for lease” signs. Notwithstanding the foregoing, Landlord shall only enter the Premises for the
purpose of showing the same to prospective tenants during the last ten (10) months of the Term. No such entry shall be construed to be a forcible or unlawful entry into, or a detailer of, the Premises, or an eviction of Tenant from the Premises.
Tenant’s representatives shall have the right to accompany Landlord on any inspection of the Premises, provided that Tenant’s representatives are available at the time of such inspections. Landlord may temporarily close entrances, doors,
corridors, elevators or other facilities without liability to Tenant by reason of such closure in the case of an emergency and when Landlord otherwise reasonably deems such closure necessary. 
  

	21.	DESTRUCTION AND DAMAGE 

  

	 	21.1	Damage Covered by Extended Coverage Insurance 

  
 If the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord shall, at Landlord’s option: 
  

	 	21.1.1	Material Damage; Insured Loss 

  
 In the event of material damage to the Premises (which shall mean damage or destruction of a nature such that all required permits cannot be reasonably
obtained and/or the Premises can not be substantially repaired and restored to the condition existing immediately prior to such damage or destruction within three hundred sixty-five (365) days after the date Landlord obtains actual knowledge of such
destruction (the “Casualty Discovery Date”)), Landlord may elect either to commence promptly to repair and restore the Premises and prosecute the same diligently to completion, in which event this Lease shall remain in full force
and effect; or not to repair or restore the Premises, in which event this Lease shall terminate. Landlord shall give Tenant 

  

 26 

 
written notice of its intention within sixty (60) days after the Casualty Discovery Date. If Landlord elects in writing not to restore the Premises, this
Lease shall be deemed to have terminated as of the date of such destruction. 
  

	 	21.1.2	Minor Damage; Insured Loss 

  
 In the event of minor damage to the Premises (which shall mean damage or destruction of a nature such that all required permits can be reasonably obtained
and the Premises may be substantially repaired or restored to the condition existing immediately prior to such damage or destruction within three hundred sixty-five (365) days after the Casualty Discovery Date) for which Landlord will receive
insurance proceeds sufficient to cover the cost to repair and restore such partial destruction, Landlord shall commence and proceed diligently with the work of repair and restoration, in which event this Lease shall continue in full force and
effect. If the insurance proceeds (plus any amounts Tenant may elect or is obligated to contribute) are not sufficient to cover the cost of such repair and restoration, Landlord may elect either to so repair and restore, in which event this Lease
shall continue in full force and effect, or not to repair or restore, in which event this Lease shall terminate. In either case, Landlord shall give written notice to Tenant of its intention within sixty (60) days after the Casualty Discovery Date.
If Landlord elects, in writing, not to restore the Premises, this Lease shall be deemed to have terminated as of the date of such partial destruction. 
  

	 	21.1.3	Calculation of Restoration Period 

  
 Following the occurrence of any casualty event, Landlord shall obtain from a licensed general contractor selected by Landlord (the “Restoration
Contractor”) an estimate of the time required to obtain all permits and to fully repair and restore the Premises. In the event the Restoration Contractor determines that the work of repair and restoration shall require more than three
hundred sixty-five (365) days to complete, Tenant shall have the right to discuss such timing with the Restoration Contractor and, with the approval of Landlord, to discuss modifications to the scope of work in an effort to reduce the repair and
restoration time to a period of less than three hundred sixty-five days; provided, however, that in the event of any disagreement between the parties as to the estimated length of the restoration period or the scope of work required, the
determination of Landlord and the Restoration Contractor shall control. 
  

	 	21.2	Uninsured Loss 

  
 If the Premises are damaged by any peril not covered by Landlord’s property insurance, and the cost to repair such damage exceeds any amount Tenant
may agree to contribute, Landlord may elect either to commence promptly to repair and restore the Premises and prosecute the same diligently to completion, in which event this Lease shall remain in full force and effect; or not to repair or restore
the Premises, in which event this Lease shall terminate. Landlord shall give Tenant written notice of its intention within sixty (60) days after the Casualty Discovery Date. If Landlord elects, in writing, not to restore the Premises, this Lease
shall be deemed to have terminated as of the date on which Tenant surrenders possession of the Premises to Landlord. 
  

 27 

	 	21.3	Casualty During Last Twelve Months of Term 

  
 If fifty percent (50%) or more of the Building is damaged or destroyed during the last twelve (12) months of the Term (unless Tenant has remaining
extension options and has previously validly exercised such options or validly exercises such options within ten (10) days after the Casualty Discovery Date), Landlord shall have the option to terminate this Lease, exercisable by notice to Tenant
within sixty (60) days after the Casualty Discovery Date. 
  

	 	21.4	Tenant’s Right to Terminate Lease 

  
 If the Premises is damaged or destroyed to the extent that the Premises cannot be substantially repaired or restored by Landlord within three hundred
sixty-five (365) days after the Casualty Discovery Date, Tenant may terminate this Lease immediately upon notice thereof to Landlord, which notice shall be given, if at all, not later than fifteen (15) days after Landlord notifies Tenant of
Landlord’s estimate of the period of time required to repair such damage or destruction. 
  

	 	21.5	Rent Abatement 

  
 In the event of repair and restoration as herein provided, the monthly installments of Base Rent and Additional Rent shall be abated proportionately to
the extent Tenant’s use of the Premises is impaired during the period of such repair or restoration, but only to the extent of rental abatement insurance proceeds actually received by Landlord. The number of parking spaces allocated to Tenant
hereunder shall be reduced on a proportionate basis in the event any of the parking spaces in the Parking Areas are eliminated as a result of such damage or destruction affecting such Parking Areas. Except as expressly provided above with respect to
abatement of Base Rent, Tenant shall have no claim against Landlord for, and hereby releases Landlord and Landlord’s Agents from responsibility for and waives its entire claim of recovery for any cost, loss or expense suffered or incurred by
Tenant as a result of any damage to or destruction of the Premises, the Building or the Project or the repair or restoration thereof, including, without limitation, any cost, loss or expense resulting from any loss of use of the whole or any part of
the Premises, the Building or the Project and/or any inconvenience or annoyance occasioned by such damage, repair or restoration. 
  

	 	21.6	Restoration of Base Building Improvements and Tenant Improvements 

  
 If Landlord is obligated to or elects to repair or restore as herein provided, Landlord shall repair or restore only the
Base Building Improvements constructed pursuant to the terms of this Lease, substantially to their condition existing immediately prior to the occurrence of the damage or destruction; and Tenant shall promptly repair and restore, at Tenant’s
expense, the Tenant Improvements and Tenant’s Alterations. Landlord shall make available to Tenant to pay Restoration Costs (as hereinafter defined) any insurance proceeds actually collected by Landlord allocable to the Tenant Improvements and
Alterations. Such proceeds shall be disbursed by Landlord in accordance with customary construction-lending practices and disbursement procedures (including, without limitation, the creation of a retention). As used herein, “Restoration
Costs” means costs actually incurred by Tenant in repairing and restoring the Tenant Improvements and any Alterations made by Tenant to the Premises. 
  

 28 

	 	21.7	Waiver 

  
 Tenant hereby waives the provisions of California Civil Code Section 1932(2) and Section 1933(4) which permit termination of a lease upon destruction of
the leased premises, and the provisions of any similar law now or hereinafter in effect, and the provisions of this Paragraph 21 shall govern exclusively in case of such destruction. 
  

	22.	CONDEMNATION 

  
 (a) If twenty-five percent (25%) or more of the Building or fifty percent (50%) or more of the Designated Parking Areas (as hereinafter defined) is taken
for any public or quasi-public purpose by any lawful governmental power or authority, by exercise of the right of appropriation, inverse condemnation, condemnation or eminent domain, or sold to prevent such taking (each such event being referred to
as a “Condemnation”), Landlord may, at its option, terminate this Lease as of the date title vests in the condemning party. If twenty-five percent (25%) or more of the Premises is taken and if the Premises remaining after such
Condemnation and any repairs by Landlord would be untenantable for the conduct of Tenant’s business operations, Tenant shall have the right to terminate this Lease as of the date title vests in the condemning party. If either party elects to
terminate this Lease as provided herein, such election shall be made by written notice to the other party given within thirty (30) days after the nature and extent of such Condemnation have been finally determined. If neither Landlord nor Tenant
elects to terminate this Lease to the extent permitted above, Landlord shall promptly proceed to restore the Premises, to the extent of any Condemnation award received by Landlord, to substantially the same condition as existed prior to such
Condemnation, allowing for the reasonable effects of such Condemnation, and a proportionate abatement shall be made to the Base Rent and Additional Rent corresponding to the time during which, and to the portion of the floor area of the Premises
(adjusted for any increase thereto resulting from any reconstruction) of which, Tenant is deprived on account of such Condemnation and restoration, as reasonably determined by Landlord. Except as expressly provided in the immediately preceding
sentence with respect to abatement of Rent, Tenant shall have no claim against Landlord for, and hereby releases Landlord and Landlord’s Agents from responsibility for and waives its entire claim of recovery for any cost, loss or expense
suffered or incurred by Tenant as a result of any Condemnation or the repair or restoration of the Premises, the Building, the Project or the Parking Areas following such Condemnation, including, without limitation, any cost, loss or expense
resulting from any loss of use of the whole or any part of the Premises, the Building, the Project or the parking areas and/or any inconvenience or annoyance occasioned by such Condemnation, repair or restoration. The provisions of California Code
of Civil Procedure Section 1265.130, which allows either party to petition the Superior Court to terminate the Lease in the event of a partial taking of the Premises, the Building or the Project or the parking areas for the Building or the Project,
and any other applicable law now or hereafter enacted, are hereby waived by Tenant. 
  
 (b) Landlord shall be entitled to any and all compensation, damages, income, rent, awards, or any interest therein whatsoever which may be paid or made in connection with any Condemnation, and Tenant shall have no
claim against Landlord for the value of any unexpired term of this Lease or otherwise; provided, however, that Tenant shall be entitled to receive any award separately allocated by the condemning authority to Tenant for Tenant’s relocation

  

 29 

 
expenses or the value of Tenant’s Property (specifically excluding fixtures, Alterations and other components of the Premises which under this Lease or
by law are or at the expiration of the Term will become the property of Landlord), provided that such award does not reduce any award otherwise allocable or payable to Landlord. 
  

	23.	ASSIGNMENT AND SUBLETTING 

  

	 	23.1	Landlord’s Consent Required Except for Permitted Transfers 

  

Except as specifically provided for in Paragraph 23.3 below, Tenant shall not voluntarily or by operation of law, (1) mortgage, pledge, hypothecate or
encumber this Lease or any interest herein, (2) assign or transfer this Lease or any interest herein, (3) sublease the Premises or any part thereof, or any right or privilege appurtenant thereto, or (4) allow any other person (the employees and
invitees of Tenant excepted) to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, provided that Tenant is not then
in Default under this Lease nor is any event then occurring which with the giving of notice or the passage of time, or both, would constitute a Default hereunder. 
  

	 	23.2	Requirements of Request for Consent 

  
 When Tenant requests Landlord’s consent to such assignment or subletting, it shall notify Landlord in writing of the name and address of the proposed
assignee or subtenant and the nature and character of the business of the proposed assignee or subtenant and shall provide current and prior financial statements for the proposed assignee or subtenant prepared in accordance with generally accepted
accounting principles consistently applied (“GAAP”). Tenant shall also provide Landlord with a copy of the proposed sublease or assignment agreement, including all material terms and conditions thereof, and such additional
information concerning the proposed assignee or subtenant as Landlord may request. Landlord shall have the option, to be exercised within fifteen (15) days of receipt of the foregoing in the case of a proposed assignment or subletting affecting not
more than eleven thousand (11,000) square feet of the Premises, and within thirty (30) days of receipt of the foregoing in the case of a proposed assignment or subletting affecting more than eleven thousand (11,000) square feet
(“Landlord’s Review Period”), to (1) consent to the proposed assignment or sublease, (2) refuse its consent to the proposed assignment or sublease, providing that such consent shall not be unreasonably withheld, conditioned or
delayed so long as Tenant is not then in Default under this Lease or the-901 Gateway Lease, nor is any event then occurring which with the giving of notice or the passage of time, or both, would constitute a Default hereunder or under the 901
Gateway Lease, or (3) sublease or take an assignment, as the case may be, from Tenant of the interest in this Lease and/or the Premises that Tenant proposes to assign or sublease, on the same terms and conditions as stated in the proposed sublet or
assignment agreement. Notwithstanding the foregoing, in the event Tenant wishes to assign or sublet all of the Premises for all of the remainder of the Term (except in either event in connection with a Permitted Transfer), then in addition to the
options specified in the aforesaid clauses (1), (2) and (3), Landlord shall have the additional right, to be exercised within the aforesaid thirty (30) day period, to terminate this Lease in its entirety. In the event Landlord elects to terminate
this Lease or sublease or take an assignment from Tenant of the interest in this Lease and/or the Premises that Tenant proposes to 

  

 30 

 
assign or sublease as provided in the foregoing clauses of this Paragraph 23.2, then Landlord shall have the additional right to negotiate directly with
Tenant’s proposed assignee or subtenant and to enter into a direct lease or occupancy agreement with such party on such terms as shall be acceptable to Landlord in its sole and absolute discretion, and Tenant hereby waives any claims against
Landlord related thereto, including, without limitation, any claims for any compensation or profit related to such lease or occupancy agreement. 
  

	 	23.3	Criteria To Be Considered in Connection with Request for Consent 

  
 Without otherwise limiting the criteria upon which Landlord may withhold its consent to a proposed assignment or sublease,
Landlord shall be entitled to consider all reasonable criteria including, but not limited to, the following: (1) whether or not the proposed subtenant or assignee is engaged in a business which, and the Premises will be used in a manner which, is in
keeping with the then character and nature of all other tenancies in the Project, (2) whether the use to be made of the Premises by the proposed subtenant or assignee will conflict with any so-called “exclusive” use then in favor of any
other tenant of the Building, the Project, or the Adjacent Properties, and whether such use would be prohibited by any other portion of this Lease, including, but not limited to, any rules and regulations then in effect, or under applicable Laws,
and whether such use imposes an unreasonable load upon the Premises and the Building and Project services, (3) the business reputation of the proposed individuals who will be managing and operating the business operations of the assignee or
subtenant, and the long-term financial and competitive business prospects of the proposed assignee or subtenant, and (4) the creditworthiness and financial stability of the proposed assignee or subtenant in light of the responsibilities involved. In
any event, Landlord may withhold its consent to any assignment or sublease if the actual use proposed to be conducted in the Premises or portion thereof is not a Permitted Use provided for under Paragraph 9 above or a general office use. 

 

	 	23.4	Permitted Transfers 

  
 Notwithstanding the foregoing, Tenant may, without Landlord’s consent, but upon notice and delivery of evidence documenting such assignment or
subletting, assign or sublet to an Affiliate (as defined below) of the original Tenant (such assignment or subletting being referred to as a “Permitted Transfer”). In addition, a sale or transfer of the capital stock of Tenant shall
be deemed a Permitted Transfer if (1) such sale or transfer occurs in connection with any bona fide financing or capitalization for the benefit of Tenant or (2) occurring through a public trade. For purposes of this Lease,
“Affiliate” shall mean, as to any Person, any person, firm or corporation (i) which shall be controlled by, under the control of, or under common control with such person, (ii) which results from a merger of, reorganization of, or
consolidation with, or (iii) which acquires substantially all of the stock or assets with respect to the business that is conducted in the Premises. “Person” means any natural person, corporation, firm, association, government,
governmental agency or any other entity, whether acting in any individual, fiduciary or other capacity. For purposes hereof, “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a person, firm or corporation, whether through the ownership of voting securities, by contract or otherwise. 
  

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	 	23.5	Excess Rent 

  
 If Landlord approves an assignment or subletting as herein provided, Tenant shall pay to Landlord, as Additional Rent, fifty percent (50%) of the Transfer
Profits (as hereinafter defined), as evidenced by written records satisfactory to Landlord. As used herein, “Transfer Profits” means the difference, if any, between (1) the Base Rent plus Additional Rent allocable to that part of the
Premises affected by such assignment or sublease pursuant to the provisions of this Lease, and (2) the rent and any additional rent payable by the assignee or sublessee to Tenant, less actual leasing commissions and reasonable attorneys’ fees,
if any, incurred by Tenant in connection with such assignment or sublease, and actual tenant improvement costs paid by Tenant in improving the Premises for the applicable assignee or subtenant up to an aggregate of five dollars ($5.00) per square
foot of space subject to the assignment or sublease transaction. The assignment or sublease agreement, as the case may be, after approval by Landlord, shall not be amended without Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed, shall contain an express assumption by the assignee or subtenant of Tenant’s obligations under this Lease and shall contain a provision directing the assignee or subtenant to pay the rent and other
sums due thereunder directly to Landlord upon receiving written notice from Landlord that Tenant is in default under this Lease with respect to the payment of Rent. In the event that, notwithstanding the giving of such notice, Tenant collects any
rent or other sums from the assignee or subtenant, then Tenant shall hold such sums in trust for the benefit of Landlord and shall immediately forward the same to Landlord. Landlord’s collection of such rent and other sums shall not constitute
an acceptance by Landlord of attornment by such assignee or subtenant. A consent to one assignment, subletting, occupation or use shall not be deemed to be a consent to any other or subsequent assignment, subletting, occupation or use, and consent
to any assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any assignment or subletting without Landlord’s consent shall be void, and shall, at the option of Landlord, constitute a Default under this
Lease. 
  

	 	23.6	No Release of Tenant 

  
 Notwithstanding any assignment or subletting, including, without limitation, a Permitted Transfer, Tenant shall at all times remain fully responsible and
liable for the payment of the Rent and for compliance with all of Tenant’s other obligations under this Lease (regardless of whether Landlord’s approval has been obtained for any such assignment or subletting). 
  

	 	23.7	Payment of Landlord’s Fees 

  
 Tenant shall pay Landlord’s reasonable fees (including, without limitation, the fees of Landlord’s counsel, not to exceed $1,000.00 per
transaction), incurred in connection with Landlord’s review and processing of documents regarding any proposed assignment or sublease. 
  

	 	23.8	No Consent to Further Assignment 

  
 Notwithstanding anything in this Lease to the contrary, in the event Landlord consents to an assignment or subletting by Tenant in accordance with the
terms of this Paragraph 23 (specifically excluding any Permitted Transfer), Tenant’s assignee or subtenant shall have no 

  

 32 

 
right to further assign this Lease or any interest therein or thereunder or to further sublease all or any portion of the Premises. 
  

	 	23.9	Constraints Reasonable 

  
 Tenant acknowledges and agrees that the restrictions, conditions and limitations imposed by this Paragraph 23 on Tenant’s ability to assign or
transfer this Lease or any interest herein, to sublet the Premises or any part thereof, to transfer or assign any right or privilege appurtenant to the Premises, or to allow any other person to occupy or use the Premises or any portion thereof, are,
for the purposes of California Civil Code Section 1951.4, as amended from time to time, and for all other purposes, reasonable at the time that the Lease was entered into, and shall be deemed to be reasonable at the time that Tenant seeks to assign
or transfer this Lease or any interest herein, to sublet the Premises or any part thereof, to transfer or assign any right or privilege appurtenant to the Premises, or to allow any other person to occupy or use the Premises or any portion thereof.

  

	24.	TENANT’S DEFAULT 

  
 The occurrence of any one of the following events shall constitute an event of default on the part of Tenant (“Default”): 
  
 (a) The vacation of the Premises for a consecutive period of sixty (60) days
or more, without (i) the intention of retaking possession or occupancy, and (ii) providing for the security of the Building, or the abandonment of the Premises by Tenant or any other vacation which would cause any insurance policy to be invalidated
or otherwise lapse; 
  
 (b) Failure to pay any installment of Rent
or any other monies due and payable hereunder within five (5) days after the date the same are due; 
  
 (c) A general assignment by Tenant for the benefit of creditors; 
  

(d) The filing of a voluntary petition in bankruptcy by Tenant, the filing by Tenant of a voluntary petition for an arrangement, the filing by or
against Tenant of a petition, voluntary or involuntary, for reorganization, or the filing of an involuntary petition by the creditors of Tenant, said involuntary petition remaining undischarged for a period of sixty (60) days; 
  
 (e) Receivership, attachment, or other judicial seizure of substantially all
of Tenant’s assets on the Premises, such attachment or other seizure remaining undismissed or undischarged for a period of sixty (60) days after the levy thereof; 
  
 (f) Death or disability of Tenant, if Tenant is a natural person, or the failure by Tenant to maintain its legal existence,
if Tenant is a corporation, partnership, limited liability company, trust or other legal entity; 
  
 (g) Failure of Tenant to execute and deliver to Landlord any estoppel certificate, subordination agreement, or lease amendment in the time periods and
manner required by Paragraphs 30 or 31 or 42; 
  

 33 

 (h) An assignment or sublease, or attempted assignment or sublease, of this Lease or the Premises by
Tenant contrary to the provisions of Paragraph 23, unless such assignment or sublease is expressly conditioned upon Tenant having received Landlord’s consent thereto; 
  
 (i) Failure of Tenant to deposit the Letter of Credit with Landlord when required under Paragraph 7, and/or failure of
Tenant to restore the Letter of Credit to the amount and within the time period provided in Paragraph 7; 
  
 (j) Failure in the performance of any of Tenant’s covenants, agreements or obligations hereunder (except those failures specified as events of
Default in any other subparagraphs of this Paragraph 24, which shall be governed by such other subparagraphs), which failure continues for thirty (30) days after written notice thereof from Landlord to Tenant, provided that, if Tenant has exercised
reasonable diligence to cure such failure and such failure cannot be cured within such thirty (30) day period despite reasonable diligence, Tenant shall not be in default under this subparagraph so long as Tenant thereafter diligently and
continuously prosecutes the cure to completion; 
  
 (k) Chronic
delinquency by Tenant in the payment of Rent, or any other periodic payments required to be paid by Tenant under this Lease. “Chronic delinquency” shall mean failure by Tenant to pay Rent, or any other periodic payments required to
be paid by Tenant under this Lease, when due (i) for any three (3) months (consecutive or nonconsecutive) during any period of twelve (12) months or (ii) for any twelve (12) months (consecutive or nonconsecutive) during the Term. In the event of a
Chronic Delinquency, in addition to Landlord’s other remedies for Default provided in this Lease, at Landlord’s option, Landlord shall have the right to require that Rent be paid by Tenant quarterly, in advance; 
  
 (1) Chronic overuse by Tenant or Tenant’s Agents of the number of
undesignated parking spaces set forth in the Basic Lease Information. “Chronic overuse” shall mean use by Tenant or Tenant’s Agents of a number of parking spaces greater than the number of parking spaces set forth in the Basic
Lease Information more than three (3) times during any twelve (12) month period; 
  
 (m) Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or be reduced or materially changed, except as permitted in this Lease, and shall not have
been replaced with substitute insurance satisfying the requirements of this Lease within five (5) business days of Tenant’s receipt of notice of such termination, reduction or change; 
  
 (n) Any failure by Tenant to discharge any lien or encumbrance placed on the
Project or any part thereof in violation of this Lease within ten (10) days after the date such lien or encumbrance is filed or recorded against the Project or any part thereof; and 
  
 (o) Any Default (as defined in the 901 Gateway Lease) under the terms of the 901 Gateway Lease. 
  
 Tenant agrees that any notice given by Landlord pursuant to Paragraph 24(j)
above shall satisfy the requirements for notice under California Code of Civil Procedure Section 1161, and 

  

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Landlord shall not be required to give any additional notice in order to be entitled to commence an unlawful detainer proceeding. 
  

	25.	LANDLORD’S REMEDIES  

  

	 	25.1	Termination 

  
 In the event of any Default by Tenant, then in addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord
shall have the immediate option to terminate this Lease and all rights of Tenant hereunder by giving written notice of such intention to terminate. In the event that Landlord shall elect to so terminate this Lease then Landlord may recover from
Tenant: 
  
 (1) the worth at the time of award of
any unpaid Rent and any other sums due and payable which have been earned at the time of such termination; plus 
  
 (2) the worth at the time of award of the amount by which the unpaid Rent and any other sums due and payable which would have been earned
after termination until the time of award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus 
  
 (3) the worth at the time of award of the amount by which the unpaid Rent and any other sums due and payable for the balance of the term
of this Lease after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus 
  
 (4) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its
obligations under this Lease or which in the ordinary course would be likely to result therefrom, including, without limitation, (A) any costs or expenses incurred by Landlord (1) in retaking possession of the Premises; (2) in maintaining,
repairing, preserving, restoring, replacing, cleaning, altering, remodeling or rehabilitating the Premises or any affected portions of the Building or the Project, including such, actions undertaken in connection with the reletting or attempted
reletting of the Premises to a new tenant or tenants; (3) for leasing commissions, advertising costs and other expenses of reletting the Premises; or (4) in carrying the Premises, including taxes, insurance premiums, utilities and security
precautions; (B) any unearned brokerage commissions paid in connection with Tenant’s lease of the Premises; (C) reimbursement of any previously waived or abated Base Rent or Additional Rent or any free rent or reduced rental rate granted
hereunder; and (D) any concession made or paid by Landlord to the benefit of Tenant in consideration of this Lease including, but not limited to, any moving allowances, contributions, payments or loans by Landlord for tenant improvements or
build-out allowances (including, without limitation, any unamortized portion of the Tenant Improvement Allowance (such Tenant Improvement Allowance to be amortized over the Term in the manner reasonably determined by Landlord), if any), and any
outstanding portion of the Deferred Allowance (including, without limitation, accrued interest thereon), if any, or assumptions by Landlord of any of Tenant’s previous lease obligations; plus 
  
 (5) such reasonable attorneys’ fees incurred by
Landlord as a result of a Default, and costs in the event suit is filed by Landlord to enforce such remedy; and plus 
  

 35 

 (6) at Landlord’s election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by applicable law. 
  
 As used in subparagraphs (1) and (2) above, the “worth at the time of award” is computed by allowing interest at an annual rate equal to twelve percent (12%) per annum or the maximum rate permitted by law, whichever is
less. As used in subparagraph (3) above, the “worth at the time of award” is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award, plus one percent (1%). Tenant
waives redemption or relief from forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or under any other pertinent present or future Law, in the event Tenant is evicted or Landlord takes possession of the Premises by reason of
any Default of Tenant hereunder. 
  

	 	25.2	Continuation of Lease 

  
 In the event of any Default by Tenant, then in addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord
shall have the remedy described in California Civil Code Section 1951.4 (Landlord may continue this Lease in effect after Tenant’s Default and abandonment and recover Rent as it becomes due, provided that Tenant has the right to sublet or
assign, subject only to reasonable limitations). In addition, Landlord shall not be liable in any way whatsoever for its failure or refusal to relet the Premises; provided, however, that the foregoing provision shall not be deemed to relieve
Landlord of any duty under applicable law to mitigate Tenant’s damages in the event Landlord elects to seek damages for Tenant’s breach or default. For purposes of this Paragraph 25.2, the following acts by Landlord will not constitute the
termination of Tenant’s right to possession of the Premises: 
  
 (1) Acts of maintenance or preservation or efforts to relet the Premises, including, but not limited to, alterations, remodeling, redecorating, repairs, replacements and/or painting as Landlord shall consider
advisable for the purpose of reletting the Premises or any part thereof; or 
  
 (2) The appointment of a receiver upon the initiative of Landlord to protect Landlord’s interest under this Lease or in the Premises. 
  

	 	25.3	Re-entry 

  
 In the event of any Default by Tenant, Landlord shall also have the right, with or without terminating this Lease, in compliance with applicable law, to
re-enter the Premises and remove all persons and property from the Premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. 
  

	 	25.4	Reletting 

  
 In the event of the abandonment of the Premises by Tenant or in the event that Landlord shall elect to re-enter as provided in Paragraph 25.3 or shall
take possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, then if Landlord does not elect to terminate this Lease as provided in Paragraph 25.1, Landlord may from time to time, without terminating this
Lease, relet the Premises or any part thereof for such term or terms and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable with the right to make alterations and repairs to the
Premises in 

  

 36 

 
Landlord’s sole discretion. In the event that Landlord shall elect to so relet, then rentals received by Landlord from such reletting shall be applied
in the following order: (1) to reasonable attorneys’ fees incurred by Landlord as a result of a Default and costs in the event suit is filed by Landlord to enforce such remedies; (2) to the payment of any indebtedness other than Rent due
hereunder from Tenant to Landlord; (3) to the payment of any costs of such reletting; (4) to the payment of the costs of any alterations and repairs to the Premises; (5) to the payment of Rent due and unpaid hereunder; and (6) the residue, if any,
shall be held by Landlord and applied in payment of future Rent and other sums payable by Tenant hereunder as the same may become due and payable hereunder. Should that portion of such rentals received from such reletting during any month, which is
applied to the payment of Rent hereunder, be less than the Rent payable during the month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord,
as soon as ascertained, any costs and expenses incurred by Landlord in such reletting or in making such alterations and repairs not covered by the rentals received from such reletting. 
  

	 	25.5	Termination 

  
 No re-entry or taking of possession of the Premises by Landlord pursuant to this Paragraph 25 shall be construed as an election to terminate this Lease
unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding any reletting without termination by Landlord because of any Default by Tenant, Landlord
may at any time after such reletting elect to terminate this Lease for any such Default. 
  

	 	25.6	Cumulative Remedies 

  
 The remedies herein provided are not exclusive and Landlord shall have any and all other remedies provided herein or by law or in equity. 
  

	 	25.7	No Surrender 

  
 No act or conduct of Landlord, whether consisting of the acceptance of the keys to the Premises, or otherwise, shall be deemed to be or constitute an
acceptance of the surrender of the Premises by Tenant prior to the expiration of the Term, and such acceptance by Landlord of surrender by Tenant shall only flow from and must be evidenced by a written acknowledgment of acceptance of surrender
signed by Landlord. The surrender of this Lease by Tenant,voluntarily or otherwise, shall not work a merger unless Landlord elects in writing that such merger take place, but shall operate as an assignment to Landlord of any and all existing
subleases, or Landlord may, at its option, elect in writing to treat such surrender as a merger terminating Tenant’s estate under this Lease, and thereupon Landlord may terminate any or all such subleases by notifying the sublessee of its
election so to do within five (5) days after such surrender. 
  

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	26.	LANDLORD’S RIGHT TO PERFORM TENANT’S OBLIGATIONS

  

	 	26.1	Landlord’s Right to Perform 

  
 Without limiting the rights and remedies of Landlord contained in Paragraph 25 above, if Tenant shall be in Default in the performance of any of the
terms, provisions, covenants or conditions to be performed or complied with by Tenant pursuant to this Lease, then Landlord may at Landlord’s option, without any obligation to do so, and without further notice to Tenant perform any such term,
provision, covenant, or condition, or make any such payment and Landlord by reason of so doing shall not be liable or responsible for any loss or damage thereby sustained by Tenant or anyone holding under or through Tenant or any of Tenant’s
Agents, unless caused by Landlord’s gross negligence or willful misconduct. 
  

	 	26.2	In Emergencies 

  
 Without limiting the rights of Landlord under Paragraph 25 above, Landlord shall have the right at Landlord’s option, without any obligation to do
so, to perform any of Tenant’s covenants or obligations under this Lease without notice to Tenant in the case of an emergency, as determined by Landlord in its good faith and absolute judgment, or if Landlord otherwise determines in its
reasonable discretion that such performance is necessary or desirable for the preservation of the rights and interests or safety of other tenants of the Building or the Project. 
  

	 	26.3	Tenant’s Obligation to Reimburse Landlord 

  
 If Landlord performs any of Tenant’s obligations hereunder in accordance with this Paragraph 26, the full amount of the cost and expense incurred or
the payment so made or the amount of the loss so sustained shall immediately be owing by Tenant to Landlord, and Tenant shall promptly pay to Landlord upon demand, as Additional Rent, the full amount thereof with interest thereon from the date of
payment by Landlord at the lower of (1) twelve percent (12%) per annum, or (2) the highest rate permitted by applicable law. 
  

	27.	ATTORNEYS’ FEES 

  

	 	27.1	Prevailing Party Entitled to Fees 

  
 If either party hereto fails to perform any of its obligations under this Lease or if any dispute arises between the parties hereto concerning the meaning
or interpretation of any provision of this Lease, then the defaulting party or the party not prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred by the other party on account of such default and/or in
enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees and disbursements. Any such attorneys’ fees and other expenses incurred by either party in enforcing a judgment in
its favor under this Lease shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys’ fees obligation is intended to be severable from the other provisions of this Lease and to
survive and not be merged into any such judgment. 
  

 38 

	 	27.2	Costs of Collection 

  
 Without limiting the generality of Paragraph 27.1 above, if Landlord utilizes the services of an attorney for the purpose of collecting any Rent due and
unpaid by Tenant or in connection with any other breach of this Lease by Tenant, Tenant agrees to pay Landlord reasonable attorneys’ fees as determined by Landlord for such services, regardless of the fact that no legal action may be commenced
or filed by Landlord. 
  

	28.	TAXES 

  
 Tenant shall be liable for and shall pay, prior to delinquency, all taxes levied against Tenant’s Property. If any Alteration or Tenant Improvement
installed by Tenant pursuant to Paragraph 12 or any of Tenant’s Property is assessed and taxed with the Project or Building, Tenant shall pay such taxes to Landlord, in an amount reasonably determined by Landlord if such taxes are not
separately stated in the applicable tax bill, within ten (10) days after delivery to Tenant of a statement therefor. 
  

	29.	EFFECT OF CONVEYANCE 

  
 The term “Landlord” as used in this Lease means, from time to time, the then current owner of the Building or the Project containing the
Premises, so that, in the event of any sale of the Building or the Project, Landlord shall be and hereby is entirely freed and relieved of all covenants and obligations of Landlord arising hereunder from and after the date of such transfer, and it
shall be deemed and construed, without further agreement between the parties and the purchaser at any such sale, that the purchaser of the Building or the Project has assumed and agreed to carry out any and all covenants and obligations of Landlord
hereunder. 
  

	30.	TENANT’S ESTOPPEL CERTIFICATE 

  
 From time to time, upon written request of Landlord, Tenant shall execute, acknowledge and deliver to Landlord or its
designee, a written certificate stating (a) the date this Lease was executed, the Commencement Date of the Term and the date the Term expires; (b) the date Tenant entered into occupancy of the Premises; (c) the amount of Rent and the date to which
such Rent has been paid; (d) that this Lease is in full force and effect and has not been assigned, modified, supplemented or amended in any way (or, if assigned, modified, supplemented or amended, specifying the date and terms of any agreement so
affecting this Lease); (e) that this Lease represents the entire agreement between the parties with respect to Tenant’s right to use and occupy the Premises (or specifying such other agreements, if any); (f) that all obligations under this
Lease to be performed by Landlord as of the date of such certificate have been satisfied (or specifying those as to which Tenant claims that Landlord has yet to perform); (g) that all required contributions by Landlord to Tenant on account of
Tenant’s improvements have been received (or stating exceptions thereto); (h) that on such date there exist no defenses or offsets that Tenant has against the enforcement of this Lease by Landlord (or stating exceptions thereto); (i) that no
Rent or other sum payable by Tenant hereunder has been paid more than one (1) month in advance (or stating exceptions thereto); (j) that a currently valid Letter of Credit has been deposited with Landlord, stating the original amount thereof and any
increases or decreases thereto; and (k) any other matters evidencing the status of this Lease that may be 

  

 39 

 
required either by a lender making a loan to Landlord to be secured by a deed of trust covering the Building or the Project or by a purchaser of the Building
or the Project. Any such certificate delivered pursuant to this Paragraph 30 may be relied upon by a prospective purchaser of Landlord’s interest or a mortgagee of Landlord’s interest or assignee of any mortgage upon Landlord’s
interest in the Premises. If Tenant shall fail to provide such certificate within ten (10) days of receipt by Tenant of a written request by Landlord as herein provided, such failure shall, at Landlord’s election, constitute a Default under
this Lease, and Tenant shall be deemed to have given such certificate as above provided without modification and shall be deemed to have admitted the accuracy of any information supplied by Landlord to a prospective purchaser or mortgagee.

  

	31.	SUBORDINATION 

  
 Landlord shall have the right to cause this Lease to be and remain subject and subordinate to any and all mortgages, deeds of trust and ground leases, if
any (“Encumbrances”) that are now or may hereafter be executed covering the Premises, or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be made
thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the terms and provisions thereof; provided only, and as an express condition precedent to any such subordination of this Lease
to an Encumbrance hereafter executed covering the Premises, that the holder of such Encumbrance (“Holder”) shall agree to recognize Tenant’s rights under this Lease upon the foreclosure or termination, as applicable, of such
Encumbrance as long as Tenant shall pay the Rent and observe and perform all the provisions of this Lease to be observed and performed by Tenant. Within ten (10) days after Landlord’s written request, Tenant shall execute, acknowledge and
deliver any and all reasonable documents required by Landlord or the Holder to effectuate such subordination, provided that, concurrently with the execution of such subordination documents, the Holder shall execute a nondisturbance agreement in
favor of Tenant consistent with the terms of this Paragraph 31. If Tenant fails to do so, such failure shall constitute a Default by Tenant under this Lease. Notwithstanding anything to the contrary set forth in this Paragraph 31, Tenant hereby
attorns and agrees to attorn to any person or entity purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers or remedies under such Encumbrance. 
  

	32.	ENVIRONMENTAL COVENANTS  

  

	 	32.1	Disclosure Certificate 

  
 Prior to executing this Lease, Tenant has completed, executed and delivered to Landlord a Hazardous Materials Disclosure Certificate (“Initial
Disclosure Certificate”), a fully completed copy of which is attached hereto as Exhibit E and incorporated herein by this reference. Tenant covenants, represents and warrants to Landlord that the information on the Initial
Disclosure Certificate is, to the best of Tenant’s knowledge, true and correct and accurately describes the Hazardous Materials which will be treated, used or stored on or about the Premises by Tenant or Tenant’s Agents. 
  

 40 

	 	32.2	Tenant’s Obligation to Update Disclosure Certificate 

  
 Tenant shall, on a semi-annual basis, complete, execute and deliver to Landlord an updated Disclosure Certificate (each, an “Updated Disclosure
Certificate”) describing Tenant’s then current and proposed future uses of Hazardous Materials on or about the Premises, which Updated Disclosure Certificates shall be in the same format as that which is set forth in Exhibit
F or in such updated format as Landlord may require from time to time. Landlord shall have the right to approve or disapprove such new or additional Hazardous Materials in its sole and absolute discretion. Tenant shall make no use of
Hazardous Materials on or about the Premises except as described in the Initial Disclosure Certificate or as otherwise approved by Landlord in writing in accordance with this Paragraph 32.2. 
  

	 	32.3	Definition of Hazardous Materials 

  
 As used in this Lease, the term “Hazardous Materials” shall mean and include any substance that is or contains (1) any “hazardous
substance” as now or hereafter defined in § 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”) (42 U.S.C. § 9601 et seq.) or any regulations
promulgated under CERCLA; (2) any “hazardous waste” as now or hereafter defined in the Resource Conservation and Recovery Act, as amended (“RCRA”) (42 U.S.C. § 6901 et seq.) or any regulations promulgated under
RCRA; (3) any substance now or hereafter regulated by the Toxic Substances Control Act, as amended (“TSCA”) (15 U.S.C. § 2601 et seq.) or any regulations promulgated under TSCA; (4) petroleum, petroleum by-products,
gasoline, diesel fuel, or other petroleum hydrocarbons; (5) asbestos and asbestos-containing material, in any form, whether friable or non-friable; (6) polychlorinated biphenyls; (7) lead and lead-containing materials; or (8) any additional
substance, material or waste (A) the presence of which on or about the Premises (i) requires reporting, investigation or remediation under any Environmental Laws (as hereinafter defined), (ii) causes or threatens to cause a nuisance on the Premises
or any adjacent area or property or poses or threatens to pose a hazard to the health or safety of persons on the Premises or any adjacent area or property, or (iii) which, if it emanated or migrated from the Premises, could constitute a trespass,
or (B) which is now or is hereafter classified or considered to be hazardous or toxic under any Environmental Laws. Landlord hereby notifies Tenant in accordance with California Health & Safety Code Section 25359.7 that in 1981-82, the Project
was the subject of a state-supervised cleanup of hazardous waste disposed of on the site by prior occupants. As part of the cleanup approved by the applicable agencies, some soils containing heavy metals were left in place, covered by clean fill.
These soils are managed in accordance with the requirements of the applicable agencies and a Declaration of Covenants, Conditions and Restrictions imposed by Homart Development Co. 
  

	 	32.4	Definition of Environmental Laws 

  
 As used in this Lease, the term “Environmental Laws” shall mean and include (1) CERCLA, RCRA and TSCA; and (2) any other federal, state
or local laws, ordinances, statutes, codes, rules, regulations, orders or decrees now or hereinafter in effect relating to (A) pollution, (B) the protection or regulation of human health, natural resources or the environment, (C) the treatment,
storage or disposal of Hazardous Materials, or (D) the emission, discharge, release or threatened release of Hazardous Materials into the environment. 
  

 41 

	 	32.5	Tenant’s Use of Hazardous Materials 

  
 Tenant agrees that during its use and occupancy of the Premises it will (1) not (A) introduce any Hazardous Materials on or about the Premises except in a
manner and quantity necessary for the ordinary performance of Tenant’s business or (B) release, discharge or dispose of any Hazardous Materials on, in, at, under, or emanating from, the Premises, the Building or the Project; (2) comply with all
Environmental Laws relating to Tenant’s use of Hazardous Materials in, on or about the Premises and not engage in or permit Tenant’s Agents to engage in any activity in, on or about the Premises in violation of any Environmental Laws; and
(3) immediately notify Landlord of (A) any inquiry, test, investigation or enforcement proceeding by any governmental agency or authority against Tenant, Landlord or the Premises, Building or Project relating to any Hazardous Materials or under any
Environmental Laws or (B) the occurrence of any event or existence of any condition that would cause a breach of any of the covenants set forth in this Paragraph 32. 
  

	 	32.6	Tenant’s Remediation Obligations 

  
 If Tenant’s use of Hazardous Materials on or about the Premises results in a release, discharge or disposal of Hazardous Materials on, in, at, under,
or emanating from, the Premises, the Building or the Project, Tenant agrees to investigate, clean up, remove or remediate such Hazardous Materials in full compliance with (1) the requirements of (A) all Environmental Laws and (B) any governmental
agency or authority responsible for the enforcement of any Environmental Laws; and (2) any additional requirements of Landlord that are reasonably necessary to protect the value of the Premises, the Building or the Project. 
  

	 	32.7	Landlord’s Inspections 

  
 Upon twenty-four (24) hours’ notice to Tenant (except in the case of an emergency, in which event no advance notice shall be required), Landlord may
inspect the Premises and surrounding areas for the purpose of determining whether there exists on or about the Premises any Hazardous Material or other condition or activity that is in violation of the requirements of this Lease or of any
Environmental Laws. Such inspections may include, but are not limited to, entering upon the property adjacent to or surrounding the Premises with drill rigs or other machinery for the purpose of obtaining laboratory samples. Landlord shall not be
limited in the number of such inspections during the Term of this Lease. In the event (1) such inspections reveal the presence of any such Hazardous Material or other condition or activity caused by Tenant or its Agents in violation of the
requirements of this Lease or of any Environmental Laws, or (2) Tenant or its Agents contribute or knowingly consent to the importation of any Hazardous Materials in, on, under, through or about the Premises, the Building or the Project or, through
their actions, exacerbate the condition of or the conditions caused by any Hazardous Materials in, on, under, through or about the Premises, the Building or the Project, Tenant shall reimburse Landlord for the cost of such inspections within ten
(10) days of receipt of a written statement therefor. Tenant will supply to Landlord such historical and operational information regarding the Premises and surrounding areas as may be reasonably requested to facilitate any such inspection and will
make available for meetings appropriate personnel having knowledge of such matters. In the event Tenant vacates the Premises prior to the Expiration Date, Tenant shall give Landlord at least sixty (60) days’ prior notice of its intention to
vacate the Premises so that 

  

 42 

 
Landlord will have an opportunity to perform such an inspection prior to such vacation. The right granted to Landlord herein to perform inspections shall not
create a duty on Landlord’s part to inspect the Premises, or liability on the part of Landlord for Tenant’s use, storage, treatment or disposal of Hazardous Materials, it being understood that Tenant shall be solely responsible for all
liability in connection therewith. 
  

	 	32.8	Landlord’s Right to Remediate 

  
 Landlord shall have the right, but not the obligation, prior or subsequent to a Default, without in any way limiting Landlord’s other rights and
remedies under this Lease, to enter upon the Premises, or to take such other actions as it deems necessary or advisable, to investigate, clean up, remove or remediate any Hazardous Materials or contamination by Hazardous Materials present on, in,
at, under, or emanating from, the Premises, the Building or the Project in violation of Tenant’s obligations under this Lease or under any Environmental Laws. Notwithstanding any other provision of this Lease, Landlord shall also have the
right, at its election, in its own name or as Tenant’s agent, to negotiate, defend, approve and appeal, at Tenant’s expense, any action taken or order issued by any governmental agency or authority with regard to any such Hazardous
Materials or contamination by Hazardous Materials. All reasonable costs and expenses paid or incurred by Landlord in the exercise of the rights set forth in this Paragraph 32 shall be payable by Tenant upon demand. 
  

	 	32.9	Condition of Premises Upon Expiration or Termination 

  
 Tenant shall surrender the Premises to Landlord upon the expiration or earlier termination of this Lease free of debris, waste or Hazardous Materials
placed on, about or near the Premises by Tenant or Tenant’s Agents, and in a condition which complies with (i) all Environmental Laws, and (ii) any additional requirements of Landlord that are reasonably necessary to protect the value of the
Premises, the Building or the Project, including, without limitation, the obtaining of any closure permits or other governmental permits or approvals related to Tenant’s use of Hazardous Materials in or about the Premises. Tenant’s
obligations and liabilities pursuant to the provisions of this Paragraph 32 shall survive the expiration or earlier termination of this Lease. 
  

	 	32.10	Tenant’s Indemnification of Landlord 

  
 Tenant agrees to indemnify and hold harmless Landlord from and against any and all claims, losses (including, without limitation, loss in value of the
Premises, the Building or the Project and any losses to Landlord due to lost opportunities to lease any portions of the Premises to succeeding tenants due to the failure of Tenant to surrender the Premises upon the expiration or sooner termination
of this Lease in accordance with the provisions of Paragraph 32.9 above), liabilities and expenses (including attorneys’ fees) sustained by Landlord attributable to (1) any Hazardous Materials placed on or about the Premises, the Building or
the Project by Tenant or Tenant’s Agents, or (2) Tenant’s breach of any provision of this Paragraph 32. 
  

	 	32.11	Landlord’s Indemnification of Tenant 

  
 Landlord agrees to indemnify and hold harmless Tenant from and against any and all claims, losses, liabilities and expenses (including attorneys’
fees, but specifically excluding lost 

  

 43 

 
profits and consequential damages) actually sustained by Tenant attributable to any Hazardous Materials placed on or about the Premises, the Building or the
Project by Landlord or Landlord’s Agents, except to the extent the condition thereof has been exacerbated by Tenant or Tenant’s Agents. 
  

	 	32.12	Limitation of Tenant’s Liability 

  
 Notwithstanding anything in this Lease to the contrary, Tenant shall not be responsible for the clean up or remediation of, and shall not be required to
indemnify Landlord against any costs or liabilities attributable to, contamination by Hazardous Materials during the Term caused by third parties or Hazardous Materials place on or about the Premises (i) prior to the Commencement Date by third
parties not related to Tenant or Tenant’s Agents, or (ii) by Landlord at any time, except in any of the foregoing cases to the extent that Tenant or Tenant’s Agents have contributed to or exacerbated the presence of such Hazardous
Materials. 
  

	 	32.13	Survival 

  
 The provisions of this Paragraph 32 shall survive the expiration or earlier termination of this Lease. 
  

	33.	NOTICES 

  
 All notices and demands which are required or may be permitted to be given to either party by the other hereunder shall be in writing and shall be sent by
United States mail, postage prepaid, certified, or by personal delivery or overnight courier, addressed to the addressee at Tenant’s Address or Landlord’s Address as specified in the Basic Lease Information, or to such other place as
either party may from time to time designate in a notice to the other party given as provided herein. Copies of all notices and demands given to Landlord shall additionally be sent to Landlord’s property manager at the address specified in the
Basic Lease Information or at such other address as Landlord may specify in writing from time to time. Notice shall be deemed given upon actual receipt (or attempted delivery if delivery is refused), if personally delivered, or one (1) business day
following deposit with a reputable overnight courier that provides a receipt, or on the third (3rd) day following deposit in the United States mail in the manner described above. 
  

	34.	WAIVER 

  
 The waiver of any breach of any term, covenant or condition of this Lease shall not be deemed to be a waiver of such term, covenant or condition or of any
subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Rent by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant, other than the failure of Tenant to pay the
particular rental so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No delay or omission in the exercise of any right or remedy of Landlord in regard to any Default by Tenant shall
impair such a right or remedy or be construed as a waiver. Any waiver by Landlord of any Default must be in writing and shall not be a waiver of any other Default concerning the same or any other provisions of this Lease. 
  

 44 

	35.	HOLDING OVER 

  
 Any holding over after the expiration of the Term, without the express written consent of Landlord, shall constitute a Default and, without limiting
Landlord’s remedies provided in this Lease, such holding over shall be construed to be a tenancy at sufferance, at a rental rate equal to the greater of one hundred fifty percent (150%) of (i) the fair market rental value for the Premises as
determined by Landlord or (ii) the Base Rent last due in this Lease, plus Additional Rent, and shall otherwise be on the terms and conditions herein specified, so far as applicable; provided, however, that in no event shall any renewal or extension
option or other similar right or option contained in this Lease be deemed applicable to any such tenancy at sufferance. If the Premises are not surrendered at the end of the Term or sooner termination of this Lease, and in accordance with the
provisions of Paragraphs 11 and 32.9, Tenant shall indemnify, defend and hold Landlord harmless from and against any and all loss or liability resulting from delay by Tenant in so surrendering the Premises including, without limitation, any loss or
liability resulting from any claim against Landlord made by any succeeding tenant or prospective tenant caused by such delay and losses to Landlord due to lost opportunities to lease any portion of the Premises to any such succeeding tenant or
prospective tenant, together with, in each case, actual attorneys’ fees and costs. 
  

	36.	SUCCESSORS AND ASSIGNS 

  

	 	36.1	Binding on Successors, Etc. 

  
 The terms, covenants and conditions of this Lease shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators and assigns of all of the parties hereto. If Tenant shall consist of more than one entity or person, the obligations of Tenant under this Lease shall be joint and several. 
  

	 	36.2	Landlord’s Right to Sell 

  
 Notwithstanding anything in this Lease to the contrary, Landlord shall have the right to sell, transfer or otherwise convey, either separately or jointly,
its interest in the Building and/or the Project, and all of Landlord’s related rights and obligations hereunder, to any Person. 
  

	37.	TIME 

  
 Time is of the essence of this Lease and each and every term, condition and provision herein. 
  

	38.	BROKERS 

  
 Landlord and Tenant each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with
any real estate broker except BT Commercial (“Broker”) in relation to Tenant’s lease of the Premises and/or the negotiating or making of this Lease, and each party agrees to indemnify and hold harmless the other from any claim or
claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in conjunction with any such claim or claims of any other broker or brokers to a commission in connection with this Lease as a result of the actions of
the indemnifying party. 

  

 45 

 
Landlord has paid or will hereafter pay the brokerage commissions due to BT Commercial in relation to Tenant’s lease of the Premises. Nothing contained
herein shall restrict Landlord from paying any fees owed by Landlord in connection with Tenant’s lease of the Premises and/or the execution of this Lease to any constituent partner of Landlord (or any Affiliate of any such partner) and to any
consultants providing services to Landlord in connection with the Project. 
  

	39.	LIMITATION OF LIABILITY 

  

Tenant agrees that, in the event of any default or breach by Landlord with respect to any of the terms of this Lease to be observed and performed by
Landlord or with respect to the enforcement of an indemnity obligation of Landlord under this Lease (1) Tenant shall look solely to the then-current landlord’s interest in the Building for the satisfaction of such indemnity obligation of
Landlord or for satisfaction of Tenant’s remedies for the collection of a judgment (or other judicial process) requiring the payment of money by Landlord; (2) no other property or assets of Landlord, its partners, shareholders, officers,
directors, employees, investment advisors, or any successor in interest of any of them (collectively, the “Landlord Parties”) shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s
remedies; (3) no personal liability shall at any time be asserted or enforceable against the Landlord Parties; and (4) no judgment will be taken against the Landlord Parties (except for a judgment against Landlord which is enforceable only to the
extent of Landlord’s interest in the Building). The provisions of this Paragraph shall apply only to the Landlord and the parties herein described, and shall not be for the benefit of any insurer nor any other third party. 
  

	40.	FINANCIAL STATEMENTS 

  
 Within ten (10) days after Landlord’s request, Tenant shall deliver to Landlord the then current, or if Tenant is a publicly traded company, the
publicly available financial statements of Tenant (including interim periods following the end of the last fiscal year for which annual statements are available), prepared, compiled or reviewed by a certified public accountant, including a balance
sheet and profit and loss statement for the most recent prior year, all prepared in accordance with GAAP. 
  

	41.	RULES AND REGULATIONS 

  
 Tenant agrees to comply with such reasonable rules and regulations as Landlord may adopt from time to time for the orderly and proper operation of the
Building and the Project. Such rules may include but shall not be limited to the following: (a) restriction of employee parking to a limited, designated area or areas in reasonable proximity to the Building; and (b) regulation of the removal,
storage and disposal of Tenant’s refuse and other rubbish at the sole cost and expense of Tenant. The then current rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible
to Tenant for the failure of any other person to observe and abide by any of said rules and regulations; provided, however, that Landlord shall enforce such rules and regulation in a non-discriminatory manner. Landlord’s current rules and
regulations are attached to this Lease as Exhibit D. 
  

 46 

	42.	MORTGAGEE PROTECTION 

  

	 	42.1	Modifications for Lender 

  
 If, in connection with obtaining financing for the Project or any portion thereof, Landlord’s lender shall request reasonable modifications to this
Lease as a condition to such financing, Tenant shall not unreasonably withhold, delay or defer its consent to such modifications, provided that such modifications do not materially adversely affect Tenant’s rights or increase Tenant’s
obligations under this Lease. 
  

	 	42.2	Rights to Cure 

  
 Tenant agrees to give to any trust deed or mortgage holder (“Holder”), by registered mail, at the same time as it is given to Landlord, a
copy of any notice of default given to Landlord, provided that prior to such notice Tenant has been notified, in writing, (byway of notice of assignment of rents and leases, or otherwise) of the address of such Holder. Tenant further agrees that if
Landlord shall have failed to cure such default within the time provided for in this Lease, then the Holder shall have an additional twenty (20) days after expiration of such period, or after receipt of such notice from Tenant (if such notice to the
Holder is required by this Paragraph 42.2), whichever shall last occur within which to cure such default or if such default cannot be cured within that time, then such additional time as may be necessary if within such twenty (20) days, any Holder
has commenced and is diligently pursuing the remedies necessary to cure such default (including, but not limited to, commencement of foreclosure proceedings, if necessary to effect such cure), in which event there shall be no default under this
Lease. 
  

	43.	ENTIRE AGREEMENT 

  
 This Lease, including the Exhibits and any Addenda attached hereto, which are hereby incorporated herein by this reference, contains the entire agreement
of the parties hereto, and no representations, inducements, promises or agreements, oral or otherwise, between the parties, not embodied herein or therein, shall be of any force and effect. Without limiting the foregoing, the terms and provisions of
that certain Option to Lease Agreement dated as of February 17, 1999, entered into by the parties hereto concurrently with the execution of the 901 Gateway Lease, shall be of no further force or effect and shall be deemed superseded in their
entirety by the terms and provisions contained in this Lease. 
  

	44.	INTEREST 

  
 Any installment of Rent and any other sum due from Tenant under this Lease which is not received by Landlord when due shall bear interest from the date
such payment was originally due under this Lease until paid at an annual rate equal to the maximum rate of interest permitted by law. Payment of such interest shall not excuse or cure any Default by Tenant. In addition, Tenant shall pay all costs
and reasonable attorneys’ fees incurred by Landlord in collection of such amounts. 
  

 47 

	45.	INTERPRETATION 

  
 This Lease shall be construed and interpreted in accordance with the laws of the State of California. The parties acknowledge and agree that no rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall be employed in the interpretation of this Lease, including the Exhibits and any Addenda attached hereto. All captions in this Lease are for reference
only and shall not be used in the interpretation of this Lease. Whenever required by the context of this Lease, the singular shall include the plural, the masculine shall include the feminine, and vice versa. If any provision of this Lease shall be
determined to be illegal or unenforceable, such determination shall not affect any other provision of this Lease and all such other provisions shall remain in full force and effect. Unless otherwise specifically stated herein to the contrary,
Landlord’s consent may be given or withheld in Landlord’s sole and absolute discretion. 
  

	46.	REPRESENTATIONS AND WARRANTIES 

  

	 	46.1	Of Tenant 

  
 Tenant hereby makes the following representations and warranties, each of which is material and being relied upon by Landlord, is true in all respects as
of the date of this Lease, and shall survive the expiration or termination of the Lease. 
  
 (1) If Tenant is an entity, Tenant is duly organized, validly existing and in good standing under the laws of the state of its
organization and the persons executing this Lease on behalf of Tenant have the full right and authority to execute this Lease on behalf of Tenant and to bind Tenant without the consent or approval of any other person or entity. Tenant has full
power, capacity, authority and legal right to execute and deliver this Lease and to perform all of its obligations hereunder. This Lease is a legal, valid and binding obligation of Tenant, enforceable in accordance with its terms. 
  
 (2) Tenant has not (i) made a general assignment for the
benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by any creditors, (iii) suffered the appointment of a receiver to take possession of all or substantially all of its assets, (iv)
suffered the attachment or other judicial seizure of all or substantially all of its assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi) made an offer of settlement, extension or composition to its creditors
generally. 
  

	 	46.2	Of Landlord 

  
 Landlord hereby makes the following representations and warranties, each of which is material and being relied upon by Tenant, is true in all respects as
of the date of this Lease, and shall survive the expiration or termination of the Lease. 
  
 (1) If Landlord is an entity, Landlord is duly organized, validly existing and in good standing under the laws of the state of its
organization and the persons executing this Lease on behalf of Landlord have the full right and authority to execute this Lease on behalf of Landlord and to bind Landlord without the consent or approval of any other person or entity. Landlord has
full power, capacity, authority and legal right to execute and deliver this Lease and to perform all 

  

 48 

 
of its obligations hereunder. This Lease is a legal, valid and binding obligation of Landlord, enforceable in accordance with its terms. 
  
 (2) Landlord has not (i) made a general assignment for the
benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by any creditors, (iii) suffered the appointment of a receiver to take possession of all or substantially all of its assets, (iv)
suffered the attachment or other judicial seizure of all or substantially all of its assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi) made an offer of settlement, extension or composition to its creditors
generally. 
  

	47.	SECURITY 

  

	 	47.1	Landlord Not Obligated to Provide Security 

  
 Tenant acknowledges and agrees that, while Landlord may engage security personnel to patrol the Building or the Project, Landlord is not required to
provide any security services with respect to the Premises, the Building or the Project and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other damage suffered
or incurred by Tenant in connection with any unauthorized entry into the Premises or any other breach of security with respect to the Premises, the Building or the Project. 
  

	 	47.2	Tenant’s Obligation to Comply with Security Measures 

  
 Tenant hereby agrees to the exercise by Landlord and Landlord’s Agents, within their sole discretion, of such security measures as, but not limited
to, the evacuation of the Premises, the Building or the Project for cause, suspected cause or for drill purposes, the denial of any access to the Premises, the Building or the Project and other similarly related actions that it deems necessary to
prevent any threat of property damage or bodily injury. The exercise of such security measures by Landlord and Landlord’s Agents, and the resulting interruption of service and cessation of Tenant’s business, if any, shall not be deemed an
eviction or disturbance of Tenant’s use and possession of the Premises, or any part thereof, or render Landlord or Landlord’s Agents liable to Tenant for any resulting damages, or relieve Tenant from Tenant’s obligations under this
Lease. 
  

	48.	JURY TRIAL WAIVER 

  
 Landlord and Tenant each hereby waive any right to trial by jury with respect to any action or proceeding (i) brought by Landlord, Tenant or any other
party, relating to (A) this Lease and/or any understandings or prior dealings between the parties hereto, or (B) the Premises, the Building or the Project or any part thereof, or (ii) to which Landlord is a party. The parties each hereby agree that
this Lease constitutes a written consent to waiver of trial by jury pursuant to the provisions of California Code of Civil Procedure Section 631. 
  

	49.	OPTION TO RENEW 

  
 Tenant shall have two (2) options (each a “Renewal Option”) to extend the Term of this Lease with respect to the entire Premises for
successive periods of five (5) years each (each a 

  

 49 

 
“Renewal Term”). Each Renewal Option shall be effective only if (i) Tenant is not in Default under this Lease and no event has occurred
which with the giving of notice or the passage of time, or both, would constitute a Default hereunder, either at the time of exercise of the Renewal Option or the time of commencement of the Renewal Term, and (ii) concurrently with the exercise of
each such Renewal Option hereunder, Tenant validly exercises the corresponding renewal option contained in Paragraph 49 of the 901 Gateway Lease. 
  

	 	49.1	Commencement Dates 

  
 If Tenant exercises the first Renewal Option in accordance herewith, the first Renewal Term shall commence on the day following the last day of the
initial Term and end on the day preceding the fifth anniversary thereof. If Tenant exercises the second Renewal Option, the second Renewal Term shall commence on the day following the last day of the first Renewal Term and end on the day preceding
the fifth anniversary thereof. The second Renewal Option may not be exercised unless Tenant has previously exercised the first Renewal Option hereunder and under the 901 Gateway Lease. Each Renewal Term, if properly exercised, shall be upon the same
terms and conditions as the Lease except for Monthly Base Rent (which shall be determined as provided in the following provisions of this Paragraph). 
  

	 	49.2	Renewal Option is Personal; Non-Transferable 

  
 The Renewal Option shall be personal to Tenant, any transferee under a Permitted Transfer, and any assignee to whom Tenant assigns its entire right, title
and interest under, or any sublessee to whom Tenant subleases the entire Premises for the entire remaining Term of, this Lease, and shall not be assignable or otherwise transferable in whole or in part, voluntarily or by operation of law, to any
other permitted assignee, subtenant or other third parties and there shall be no further Renewal Option beyond the expiration of the second Renewal Term. 
  

	 	49.3	Tenant’s Notice of Exercise 

  
 In order to exercise a Renewal Option, Tenant shall give written notice to Landlord of Tenant’s exercise of such election (“Tenant’s
Notice”) at least ten (10) months prior to expiration of the then current Term and if such notice is not so given, the Renewal Option shall lapse; the Tenant hereby expressly acknowledges and agrees that time is of the essence for purposes
of notice of exercise of a Renewal Option and that Tenant’s failure to do so by said date will relieve Landlord of any obligation under this Paragraph. If Tenant gives such notice within the time prescribed, Landlord and Tenant shall be deemed
to have entered into an extension of this Lease for a five (5) year extended term on the terms and conditions set forth herein. 
  

	 	49.4	Monthly Base Rent During Renewal Term 

  
 The Monthly Base Rent payable during any Renewal Term shall be an amount equal to the greater of (i) the Monthly Base Rent payable for the last month of
the then expiring Term (provided that such Monthly Base Rent shall be increased during each year of the Renewal Term to an amount equal to one hundred three percent (103%) of the Monthly Base Rent payable during the immediately preceding term), or
(ii) ninety-five percent (95%) of the Fair Market Rent (as hereinafter defined) for the Premises during such Renewal Term. 
  

 50 

	 	49.4.1	Fair Market Rent Definition 

  
 “Fair Market Rent” shall mean the rate being charged for comparable office/R&D/laboratory space in comparable locations in the South
San Francisco/Brisbane market area, taking into consideration: tenant credit, tenant improvements or allowances provided or to be provided and leasing commissions, but specifically excluding Tenant’s Property, any specialized laboratory
improvements or other Tenant Improvements actually paid for by Tenant (as determined in accordance with Paragraph 12.6 above). 
  

	 	49.4.2	Determination of Fair Market Rent 

  
 Landlord and Tenant shall meet and attempt in good faith to mutually determine the Fair Market Rent for any Renewal Term. If the parties have not reached
agreement on the Fair Market Rent by the date that is thirty (30) days after Landlord’s receipt of Tenant’s Notice, each party shall appoint an arbitrator and shall give to the other party notice of the identity of the arbitrator no later
than the date that is forty (40) days after Landlord’s receipt of Tenant’s Notice. If either party fails to appoint an arbitrator by the date that is forty (40) days after Landlord’s receipt of Tenant’s Notice, the sole
arbitrator appointed, if any, shall determine the Fair Market Rent. If two arbitrators are appointed, they shall immediately meet and attempt to agree upon such Fair Market Rent. If the arbitrators cannot reach agreement on the Fair Market Rent by
the date that is sixty (60) days after Landlord’s receipt of Tenant’s Notice, each arbitrator shall submit a determination of Fair Market Rent to Landlord and Tenant. If the determinations of Fair Market Rent made by these two arbitrators
vary by ten percent (10%) or less, the Fair Market Rent shall be the average of the two determinations. If the determinations vary by more than ten percent (10%), the two arbitrators shall within ten (10) days after submission of their
determinations appoint a third arbitrator. If the two arbitrators shall be unable to agree on the selection of a third arbitrator within the 10-day period, then either Tenant or Landlord may request such appointment by petitioning the presiding
judge of the Superior Court in and for the County of San Mateo. Such third arbitrator shall, within thirty (30) days after appointment, make a determination of the Fair Market Rent and submit such determination to Landlord and Tenant. The Fair
Market Rent shall be the determination of Fair Market Rent submitted by the original two arbitrators that is closer to the Fair Market Rent determination of the third arbitrator. If the third arbitrator’s determination is exactly between the
Fair Market Rent determination of the original two arbitrators, then the Fair Market Rent shall be the average of the original two determinations. The determination of Fair Market Rent pursuant to this Paragraph 49 shall be final and binding on
Landlord and Tenant. 
  

	 	49.4.3	Arbitrator Qualifications 

  
 For purposes of this Paragraph, “arbitrator” shall mean a licensed commercial real estate broker or leasing agent with not less than five
(5) years of full-time commercial brokerage experience in San Mateo County. 
  

	 	49.4.4	Fees and Costs of Arbitrators 

  
 Each party shall bear the fees and costs of its arbitrator in connection with the determination of Fair Market Rent and one-half of the fees and costs of
the third arbitrator, if any. 
  

 51 

	 	49.4.5	Arbitration Period Base Rent 

  
 If the determination of Fair Market Rent has not been made by the expiration of the then expiring Term, Tenant shall (i) continue to pay Monthly Base Rent
at the Monthly Base Rent for the last month of the Term (the “Arbitration Period Base Rent”) as well as any Additional Rent due under the Lease and (ii) pay to Landlord, or receive as a refund from Landlord, as applicable, on the
first day of the month after the determination of Fair Market Rent is made, an amount, if any, equal to the difference between the Arbitration Period Base Rent that was paid to Landlord and the Monthly Base Rent for the Renewal Term that should have
been paid to Landlord as the Monthly Base Rent for the Renewal Term as determined hereunder. 
  

	50.	PARKING 

  

	 	50.1	Grant of Parking License 

  
 Provided that Tenant shall comply with and abide by Landlord’s parking rules and regulations from time to time in effect, Tenant shall have a license
to use for the parking of passenger automobiles the number of non-exclusive and undesignated parking spaces set forth in the Basic Lease Information in the areas designated for parking by Landlord from time to time (the “Designated Parking
Areas”). Notwithstanding the foregoing, Landlord shall not be required to enforce Tenant’s right to use any such parking spaces (but Landlord shall use commercially reasonable efforts to resolve any problems related to parking); and
provided, further, that the number of parking spaces allocated to Tenant hereunder shall be reduced on a proportionate basis in the event any of the parking spaces in the Designated Parking Areas are taken or otherwise eliminated as a result of any
Condemnation or casualty event affecting such Designated Parking Areas. Notwithstanding the foregoing provisions of this Paragraph 50.1, Landlord shall have the right to relocate Tenant’s parking from time to time to other areas within the
Project and to provide parking spaces to Tenant in surface parking lots, parking structures or other areas now or hereafter designated by Landlord as the “Project’s Parking Areas.” All unreserved spaces will be on a first-come,
first-served basis in common with other tenants of and visitors to the Project in parking spaces provided by Landlord from time to time in the Project’s Parking Areas. Tenant’s license to use the parking spaces provided for herein shall be
subject to such terms, conditions, rules and regulations as Landlord or the operator of the Parking Area may impose from time to time. 
  

	 	50.2	No Assignment of Parking License 

  
 The license granted hereunder is for self-service parking only and does not include additional rights or services except to the extent that Landlord
elects in its sole and absolute discretion to provide any such services. 
  

	 	50.3	Visitor Parking 

  
 Tenant recognizes and agrees that visitors, clients and/or customers (collectively the “Visitors”) to the Project and the Premises must
park automobiles or other vehicles only in areas designated by Landlord from time to time as being for the use of such Visitors and Tenant hereby agrees to ask its Visitors to park only in the areas designated by Landlord from time to time for the
use of Tenant’s Visitors. 
  

 52 

	51.	RIGHT OF FIRST OFFER 

  

	 	51.1	Offer Notice 

  
 If subsequent to the full execution of this Lease, Landlord desires to sell the Building, Landlord shall notify Tenant in writing of such intent to sell
(the “Offer Notice”); provided, however, that Landlord shall not be required to provide Tenant with the Offer Notice with respect to the Building if Landlord has previously terminated this Lease or recaptured the Premises. This
Right of First Offer shall be personal to Tenant and any transferee under a Permitted Transfer and shall not be assignable or otherwise transferable in whole or in part, voluntarily or by operation of law, to any other permitted assignee, subtenant
or other third parties. Tenant’s right to receive the Offer Notice shall further be effective only if Tenant is not in Default under this Lease and no event has occurred which with the giving of notice or the passage of time, or both, would
constitute a Default hereunder. Subject to Paragraph 51.4 below, Tenant’s right to receive an Offer Notice in accordance with this Paragraph 51.1 shall be a one-time right. 
  

	 	51.2	Election Notice 

  
 In the event Tenant desires to purchase the Building, Tenant shall notify Landlord in writing of its election to purchase the Building (the
“Election Notice”) within ten (10) days following Tenant’s receipt of the Offer Notice. If Tenant delivers an Election Notice to Landlord, Tenant shall acquire the Building on an “AS IS” basis and without any
representations or warranties from Landlord. 
  

	 	51.3	Purchase and Sale Agreement 

  
 In the event Tenant timely delivers the Election Notice to Landlord, the parties shall thereafter execute a purchase and sale agreement prepared by
Seller’s counsel (the “Purchase and Sale Agreement”) with the purchase price of the Building (the “Purchase Price”) equal to the quotient of the Net Operating Income (as defined below) of the Building divided
by nine one hundredths (.09) and with a closing (the “Closing”) to be held on or before the date that is forty-five (45) days after delivery of the Offer Notice. 
  

	 	51.4	Failure to Exercise or Sign Agreement 

  
 If Tenant fails to deliver an Election Notice within the 10-day time period, or if for any reason whatsoever Tenant has not executed the Purchase and Sale
Agreement within ten (10) days after its receipt thereof from Landlord, Tenant’s right to purchase the Building hereunder shall automatically terminate and be of no further force and effect with respect to Landlord or any other Person (as
hereinafter defined) and Landlord shall thereafter have the right to sell the Building at any time to any Person on terms acceptable to Landlord in its sole and absolute discretion. Notwithstanding the foregoing, if Landlord fails to enter into a
letter of intent or purchase and sale agreement for the sale of the Building to any such Person within two hundred seventy (270) days after the date Tenant’s right to purchase the Building lapses pursuant to this Paragraph 51.4, then
Tenant’s rights under this Paragraph 51 shall be reinstated and Landlord shall once again furnish Tenant with an Offer Notice prior to selling the Building to a Person other than a Landlord Affiliate. Tenant hereby expressly acknowledges and
agrees that time is of 

  

 53 

 
the essence for purposes of the Election Notice and the ten (10) day period to execute the Purchase and Sale Agreement and that Tenant’s failure to
deliver such Election Notice or the executed Purchase and Sale Agreement as specified herein will relieve Landlord of any obligation under this Paragraph. 
  

	 	51.5	Net Operating Income 

  
 As used herein, “Net Operating Income” shall mean the Monthly Base Rent due under the Lease with respect to the Building being purchased for the
twelve (12) full calendar months following the Offer Notice or, if the Offer Notice is given prior to the Commencement Date, the Monthly Base Rent for the Premises for the twelve (12) full calendar months following the Commencement Date, and Tenant
shall receive a credit against the Purchase Price equal to the cost (calculated as of the date of Closing) reasonably estimated by Landlord to complete the Base Building Improvements (exclusive of any Tenant Requested Base Building Improvements and
any improvements or costs required to be paid by Tenant under the terms of the Lease), assuming for purposes of this determination that the Base Building Improvements for the Building shall be similar in design and quality to the Base Building
Improvements constructed by Landlord under the 901 Gateway Lease. As used in this Paragraph 51.5, Monthly Base Rent shall mean the scheduled Monthly Base Rent set forth in the Basic Lease Information plus the monthly installment of principal and
interest required to be paid on the Deferred Allowance, if any, pursuant to Section D of Exhibit B. 
  

	 	51.6	Landlord’s Sale to Affiliate; Survival of Option 

  
 Notwithstanding anything in this Paragraph to the contrary, this Paragraph shall be inapplicable to, and neither Landlord nor any person or entity
providing financing to Landlord in connection with the Building (“Lender”) shall have any obligation to provide an Offer Notice to Tenant in connection with (i) any sale, conveyance or other transfer or proposed sale, conveyance or
other transfer of the Building to any Person who controls, is controlled by or is under common control with, Landlord or Lender or any Person in which Hines Interest Limited Partnership or Morgan Stanley Real Estate Investment Fund maintains an
interest (collectively, a “Landlord Affiliate”), or (ii) any foreclosure sale or deed-in-lieu of foreclosure or the exercise of any similar remedy (collectively, a “Foreclosure”) by any Lender. As used herein
“Person” shall mean any natural person, corporation, firm, association or other entity, whether acting in an individual, fiduciary or other capacity. Tenant’s rights under this Paragraph 51.6 shall survive Landlord’s
transfer pursuant to clause (i) of this Paragraph 51.6 but shall not survive any Foreclosure. 
  

	 	51.7	Concurrent Exercise of Rights of First Offer with respect to 901 Gateway Boulevard and 951 Gateway Boulevard 

  
 Notwithstanding anything to the contrary contained in this Paragraph 51, if
Landlord concurrently delivers to Tenant an Offer Notice under this Lease and an Offer Notice under Paragraph 51 of the 901 Gateway Lease, then Tenant shall have the right to exercise the Right of First Offer contained in this Paragraph 51 only if
it concurrently and validly exercises the Right of First Offer granted to Tenant under Paragraph 51 of the 901 Gateway Lease. Any attempt by Tenant to deliver an Election Notice under Paragraph 51.2 above without the concurrent delivery 

  

 54 

 
of an Election Notice under Paragraph 51.2 of the 901 Gateway Lease (assuming that Landlord has delivered to Tenant Offer Notices under both this Lease and
the 901 Gateway Lease) shall be null and void and of no force or effect. 
  

	52.	MEMORANDUM OF LEASE 

  
 Promptly after full execution of this Lease, Landlord and Tenant shall execute and cause to be recorded a Memorandum of Lease in the form attached hereto
as Exhibit G. 
  
 Landlord and Tenant
have executed and delivered this Lease effective as of the Lease Date specified in the Basic Lease Information. 
  

											
	LANDLORD:	 	 HMS GATEWAY OFFICE, L.P.,
 a Delaware limited partnership

			
	 	 	By:	 	 Hines Gateway Office, L.P.,
 Administrative Partner

				
	 	 	 	 	By:	 	 Hines Interests Limited Partnership,
 General Partner

					
	 	 	 	 	 	 	By:	 	 Hines Holdings, Inc.,
 General
Partner

						
	 	 	 	 	 	 	 	 	By:	 	 /s/ JAMES C. BUIE JR.

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 JAMES C. BUIE JR.

	 	 	 	 	 	 	 	 	Its:	 	 EVP

  

											
	TENANT:	 	 ADVANCED MEDICINE, INC.,

	 	 	 a Delaware corporation

			
	 	 	By:	 	 /s/ A. GREG STURMER

	 	 	 	 	

	 	 	Name:	 	 A. GREG STURMER

	 	 	Its:	 	 VP FINANCE

  

 55 

 EXHIBIT A 
  
 BASE BUILDING CONSTRUCTION AGREEMENT 
  
 This exhibit, entitled “Base Building Construction
Agreement”, is and shall constitute Exhibit A to the Lease Agreement, dated as of January 1, 2001, by and between Landlord and Tenant (the “Lease”). The terms and conditions of this Exhibit
A are hereby incorporated into and are made a part of the Lease. 
  
 Subject to the terms and conditions set forth herein and in the Lease, Landlord shall cause construction of the Building in accordance with the procedures set forth below: 
  

	A.	Definitions 

  

	 	1.	“Base Building Improvements” shall mean a three (3) story building, containing approximately 60,000 square feet, all exterior surfaces, utilities, landscaping and
paved parking, all in substantial compliance with those items listed on the 951 Gateway Preliminary Specifications as “Base Building” and located substantially in accordance with the Site Plan; provided, however, that the term
“Base Building Improvements” shall not include any Tenant Requested Base Building Improvements. 

  

	 	2.	“Base Building Plans and Specifications” is defined in Section B.1 below. 

  

	 	3.	“Building Work Cost” is defined in Section B.3 below. 

  

	 	4.	“Contractor” shall mean a licensed general contractor selected by Landlord and approved by Tenant, which approval shall not be unreasonably withheld, conditioned or
delayed. 

  

	 	5.	“Construction Warranties” is defined in Section D.3 below. 

  

	 	6.	“Landlord’s Architect” shall mean Dowler Gruman Architects or another architect selected by Landlord in Landlord’s reasonable discretion.

  

	 	7.	“Landlord’s Contract” shall mean the construction contract entered into by and between Landlord and the Contractor for the construction of the Base Building
Improvements and any Tenant Requested Base Building Improvements. 

  

	 	8.	“Original Base Building Plans and Specifications” shall mean the plans and specifications for the two (2) story building, comprising approximately 50,000 square
feet, together with all exterior surfaces, utilities, landscaping and paved parking associated therewith, which was to have been constructed by Landlord pursuant to the Original 951 Lease, which plans and specifications were titled
“Preliminary Construction Documents dated August 24, 2000,” and were prepared by Dowler Gruman Architects. 

  

	 	9.	“951 Gateway Preliminary Specifications” shall mean those preliminary specifications for construction of the Base Building Improvements categorized as “Base
Building” and more particularly described on the attached Exhibit A-1. 

  

 A–1 

	 	10.	“Site Plan” shall mean the site plan set forth on the attached Exhibit A-2 establishing the approximate location of the Building.

  

	 	11.	“Tenant Requested Base Building Improvements” shall mean those improvements requested by Tenant in accordance with this Exhibit A that are to be
incorporated into the Base Building Plans and Specifications. 

  
 Capitalized terms not otherwise defined in this Exhibit A shall have the meanings ascribed to them in the Lease. 
  

	B.	Schedule 

  

	 	1.	Plans and Specifications. Landlord’s Architect has previously prepared the Original Base Building Plans and Specifications. At Tenant’s request, Landlord has
obtained the governmental approvals, permits and variances required for the construction of the Base Building Improvements contemplated under this Lease (the “Expansion Approvals”). At Tenant’s sole cost and expense,
Landlord’s Architect shall modify and amend the Original Base Building Plans and Specifications, on or before Friday, February 23, 2001, to incorporate any changes necessary to accommodate construction of all of the Base Building Improvements
substantially in accordance with the 951 Gateway Preliminary Specifications (the “Base Building Plans and Specifications”). Tenant shall have the right to approve the Base Building Plans and Specifications only to the extent such
plans and specifications reflect any changes to the Original Base Building Plans and Specifications which are material deviations from the 951 Gateway Preliminary Specifications; provided, however, that such approval shall not be unreasonably
withheld, conditioned or delayed; and provided,, further, that if Tenant fails to respond within ten (10) days following Landlord’s request for approval, Tenant shall be conclusively deemed to have given its approval to the matter submitted by
Landlord. Notwithstanding the foregoing, the Base Building Plans and Specifications are, from time to time, subject to change in Landlord’s discretion, upon written consent from Tenant, which consent shall not be unreasonably withheld,
conditioned or delayed; and provided, further, that if Tenant fails to respond within five (5) business days following Landlord’s request for consent, Tenant shall be conclusively deemed to have given its consent to any such change. Landlord
may without the written consent of the Tenant change the Base Building Plans and Specifications as may be required by any governmental agency or as necessary to comply with any governmental requirements or to address structural or unanticipated
field conditions or which, in the reasonable discretion of Landlord, will not have a material effect on Tenant’s use of the Premises or a material effect on the aesthetic appearance or impression relating to the Base Building Improvements.

  

	 	2.	 Tenant Requested Base Building Improvements. On or before Friday, February 23, 2001, Tenant shall deliver to Landlord’s Architect detailed
specifications for any Tenant Requested Base Building Improvements. Landlord shall have ten (10) days from its receipt of such specifications to approve or disapprove the Tenant Requested Base Building Improvements. Landlord’s approval may be
given or withheld in Landlord’s reasonable discretion, to ensure, among other things, that the Tenant 

  

 A–2 

	 	 
Requested Base Building Improvements are compatible with all other construction and all Systems within the Building. If Landlord disapproves the Tenant
Requested Base Building Improvements, then within five (5) business days thereafter, Landlord shall meet with the Tenant’s Architect (as defined in Exhibit B) and Tenant to discuss, or shall submit to Tenant’s
Architect and Tenant in writing, the reasons for Landlord’s disapproval. Within five (5) business days following such meeting or submission, Tenant shall cause Tenant’s Architect to revise the same and to submit new specifications for the
Tenant Requested Base Building Improvements to Landlord. The procedure set forth in this paragraph will be repeated as set forth above until Landlord has approved the Tenant Requested Base Building Improvements. 

  

	 	3.	Estimate of Building Work Costs. Following the approval by Landlord of the Tenant Requested Base Building Improvements, Landlord shall furnish Tenant with an estimate of the
cost of the Tenant Requested Base Building Improvements (the “Building Work Cost”). 

  

	 	4.	Tenant’s Review of Building Work Cost. The Building Work Cost shall be subject to Tenant’s approval, which approval shall not be unreasonably withheld, conditioned
or delayed; and provided, further, that if Tenant fails to respond within five (5) business days following Landlord’s request for consent, Tenant shall be conclusively deemed to have given its approval to the Building Work Cost. If Tenant
timely disapproves the Building Work Cost, then within five (5) business days thereafter, Tenant shall meet with Landlord, Contractor, Landlord’s Architect and Tenant’s Architect to discuss value engineering changes to the Tenant Requested
Base Building Improvements. Within five (5) business days following such meeting, Tenant shall cause Tenant’s Architect to revise the Tenant Requested Base Building Improvements and to submit revised specifications for approval by Landlord in
accordance with the procedure set forth above and for a new Building Work Cost to be prepared by Landlord. The procedure set forth in this paragraph will be repeated until Tenant has approved the Building Work Cost. 

 

	 	5.	Revision of Plans & Specifications. Following Landlord’s approval of the Tenant Requested Base Building Improvements and Tenant’s approval of the Building Work
Cost, Landlord shall cause Landlord’s Architect to revise the Base Building Plans and Specifications to incorporate the Tenant Requested Base Building Improvements. 

  

	C.	Construction 

  
 The Base Building Improvements shall be constructed, at Landlord’s sole cost and expense, by Contractor in accordance with the Base Building Plans
and Specifications, as the same may be amended or modified from time to time by Landlord. 
  

	D.	General 

  

	 	1.	 Landlord’s Covenant. Subject to the terms and conditions of the Lease and the conditions precedent set forth in Section D.1 above, Landlord covenants
that the Base Building Improvements shall be free from material latent defects in design, materials 

  

 A–3 

	 	 
and workmanship. Any claims by Tenant under this Section D.1 shall be made in writing not later than one (1) year after the Commencement Date. In the event
Tenant fails to deliver a written claim to Landlord on or before the applicable date set forth above, then Landlord shall be conclusively deemed to have satisfied its obligations under this paragraph. The covenants contained in this paragraph are
subject to Paragraph 39 of the Lease and are made specifically and exclusively for the benefit of the original Tenant and any assignee or sublessee under a Permitted Transfer pursuant to Paragraph 23.4 of the Lease. 

  

	 	2.	Construction Warranties. Landlord shall obtain from Contractor, and shall request Contractor to obtain from all subcontractors and material suppliers, warranties
(collectively, “Construction Warranties”) for all components of the Base Building Improvements for which warranties are customarily provided in the construction industry and Landlord shall enforce the Construction Warranties as
reasonably requested by Tenant. 

  

	 	3.	Special Provisions regarding Construction of Bridge. At the request of Tenant submitted to Landlord in accordance with Section B.2 above, Landlord shall consent to the
construction of a pedestrian bridge (the “Bridge”) connecting the Building to the 901 Gateway Premises in a location approved by Landlord in writing, subject, however, to the issuance by the City of all required permits and
approvals for the construction of the Bridge and compliance by Tenant with all of the terms and provisions of said Section B.2, including, without limitation, the delivery to and approval by Landlord of detailed plans and specifications for the
Bridge and all required alterations to the facades of the Building and the 901 Gateway Premises. 

  

			
	INITIALS:
		
	TENANT:	 	 /s/    A. Greg Sturmer

	 	 	

		
	LANDLORD:	 	 /s/    James C. Buie, Jr.

	 	 	

  

 A–4 

 EXHIBIT A-1 
  
 951 GATEWAY PRELIMINARY SPECIFICATIONS 
  
 A “cold shell” standard shell for each building shall be
constructed per all governmental codes by Landlord for Tenant, including, but not limited to, the following: 
  
 Structure/Envelope 
  

	 	•	Concrete foundation to be reinforced grade beams with spread footings or other system as specified by geotechnical and engineering consultants. 

  

	 	•	Ground floor to be concrete slab, minimum thickness 5", level to FF-20, FL-15, on grade or as required by geotechnical and engineering consultants with a minimum of 4" drain rock,
2" sand cushion and a 10 mil vapor barrier, but in no event a mar slab. 

  

	 	•	Second and third floors to have vented metal decking with reinforced concrete topping slab which meets fire inspection code and flat to FF-20. 

  

	 	•	Building structural framing to consist of reinforced steel “braced frame” with beams and columns constructed using rolled shapes. Cross bracing at exterior.

  

	 	•	Non-bearing exterior curtain wall consisting of EIFS, with exterior containing a minimum average of 40% glass with ribbon windows of high performance glass (minimum shading
coefficient of .67). 

  

	 	•	Floor system designed with live load capacity of 120 psf. 

  

	 	•	Roof live load to be 50 psf in all bays. 

  

	 	•	Floor to floor heights to be 17'-0". 

  

	 	•	Roof drains and drain lines with connection to site storm drain system. 

  

	 	•	Paved surface parking and structured parking adjacent to the Premises as required to provide tenant with the parking designated in the Lease. 

  

	 	•	Roof screens up to 11'-0" in height above the roof as required by the City. 

  

	 	•	Roofing membrane to be a four-ply asphalt built-up over rigid insulation over metal deck roof construction. 

  

	 	•	Fire proofing of building structure, if required, to building code. 

  

	 	•	Fire safing between floors to maintain code required separations. 

  

	 	•	Perimeter and roof base building insulation per Title 24 requirements. 

  

 A-1–1 

 Utilities 
  

	 	•	2,000 amp 277/480 volt, 3-phase electric service and transformer with underground electrical to switchgear and meter. 

  

	 	•	“House power” panels and transformer for site lights and irrigation. 

  

	 	•	One gas service to exterior meter. 

  

	 	•	Four (4), 4" telephone and data conduits. Stubbed to building. 

  

	 	•	Site storm drain system. 

  

	 	•	Domestic water service with meters, backflow preventers and check assembly located per California Water Service requirements. 

  

	 	•	Sanitary sewer to and including main line under ground floor slab. 

  

	 	•	Complete light hazard automatic fire sprinkler system to meet NFPA standards (excluding drops to suspended ceilings). 

  
 Miscellaneous 
  

	 	•	Exterior doors prepared with hardware and rough-in to provide for electronic security. Such security to be provided and installed by Tenant. 

  

	 	•	All utility connection(s) and development fees for base building systems. 

  

	 	•	Landscaping, hardscapes and automatic irrigation systems, including control systems. 

  

	 	•	One (1) monument sign at each main entrance along Gateway Boulevard identifying The Gateway North Campus and the building address. 

  

	 	•	Site lighting a minimum of one (1) foot candle per square foot, including control system. 

  

	 	•	Two (2) sets of interior exit stairs per building and two corresponding exits; one set of exit stairs shall be extended to the roof for roof access. 

  

 A-1–2 

 EXHIBIT A2 
  
 SITE PLAN 
  
 

 
  

 EXHIBIT B 
  
 PREMISES CONSTRUCTION AGREEMENT 
  
 This exhibit, entitled “Premises Construction Agreement”, is and
shall constitute Exhibit B to the Lease Agreement, dated as of January 1, 2001, by and between Landlord and Tenant (the “Lease”). The terms and conditions of this Exhibit B are hereby
incorporated into and are made a part of the Lease. 
  
 Subject to
the terms and conditions set forth herein and in the Lease, Landlord shall allow the construction or installation of the improvements in the interior of the Premises in accordance with the procedures set forth below: 
  

	A.	Definitions 

  

	 	1.	“Approved Plans” is defined in Section B.5 below. 

  

	 	2.	“Contractor” shall mean the general contractor retained by Landlord pursuant to Exhibit A to the Lease. 

 

	 	3.	“Estimated Work Cost” is defined in Section B.3 below. 

  

	 	4.	“Excess Tenant Improvements Costs” is defined in Section B.6 below. 

  

	 	5.	“Final Cost Quotation” is defined in Section B.6 below and shall include all costs associated with the Tenant Improvements, including, without limitation, costs of
all tenant improvement work; architectural and engineering fees; governmental agency fees for permits, licenses and inspections; construction fees, including, without limitation, general contractors’ overhead and supervision fees; and such
other costs as may be incurred by Landlord in connection with such construction. 

  

	 	6.	“Preliminary Plans” is defined in Section B.1 below. 

  

	 	7.	 “Tenant Improvement Allowance” shall mean the amount set forth in the Basic Lease Information as adjusted pursuant to the provisions thereof, which
amount shall, except as otherwise provided in this Exhibit B, be paid by Landlord toward the cost of completion of the Tenant Improvements (collectively, the “Tenant Improvement Cost”). The Tenant Improvement Allowance shall be subject to
adjustment upon the final determination of the Premises square footage by Landlord’s Architect. Notwithstanding the foregoing, (i) not less than an amount equal to
                                         per
square foot of the Premises (the “Warm Shell Allowance”) shall be expended on the improvements generally described on Exhibit B-1 hereto, and (ii) the Tenant Improvement Allowance and the Deferred
Allowance may not be used to pay the costs of Tenant Improvements that constitute furniture, equipment or trade fixtures or result in changes to the Base Building Improvements. If the Tenant Improvement Cost exceeds the Tenant Improvement Allowance,
the difference shall be paid by Tenant in accordance with this Exhibit B. If the total cost of constructing and installing the improvements described on Exhibit B-1 is less than the Warm Shell

  

 B–1 

	 	 
Allowance, then the Tenant Improvement Allowance shall be reduced by the difference and the difference shall not be disbursed to Tenant.

  

	 	8.	“Tenant’s Architect” shall mean Dowler Gruman Architects or a replacement licensed architect selected by Tenant and approved by Landlord.

  

	 	9.	“Tenant’s Contract” shall mean the construction contract entered into by and between Tenant and the Contractor for the construction of the Tenant Improvements.

  

	 	10.	“Tenant Improvements” shall mean all improvements made to the Premises pursuant to the Approved Plans, specifically excluding, however, any Tenant Requested Base
Building Improvements (as defined in Exhibit A to the Lease). Without limiting the generality of the foregoing, the Tenant Improvements shall include and Tenant shall be responsible for the construction and installation
of the improvements described on Exhibit B-1. 

  

	 	11.	“Warm Shell Allowance” is defined within the definition of Tenant Improvement Allowance in Section A.7 above. 

  
 Capitalized terms not otherwise defined in this Exhibit
B shall have the meanings ascribed to them in the Lease. 
  

	B.	Schedule 

  

	 	1.	Tenant shall cause Tenant’s Architect to furnish to Landlord preliminary space plans and specifications (the “Preliminary Plans”) on or before February 15,
2001. The failure of Tenant’s Architect to furnish Preliminary Plans to Landlord by February 15, 2001 shall constitute a Tenant Delay for all purposes of this Lease and shall not lead to a postponement of or adjustment to the Commencement Date.
Tenant shall be responsible for all costs associated with the Preliminary Plans (collectively, the “Preliminary Design Costs”), including any revisions required by Section B.2 hereunder. 

  

	 	2.	Landlord shall have ten (10) days from its receipt of the Preliminary Plans to approve or disapprove the same. Landlord’s approval of the Preliminary Plans shall not be
unreasonably withheld, conditioned or delayed. If Landlord disapproves the Preliminary Plans, then within five (5) business days thereafter, Landlord shall meet with Tenant’s Architect and Tenant to discuss, or shall submit to Tenant’s
Architect and Tenant in writing, the reasons for Landlord’s disapproval. Within five (5) business days following such meeting or submission, Tenant shall cause the Tenant’s Architect to revise the same and to submit new Preliminary Plans
to Landlord. The same procedure set forth in this paragraph will be repeated as set forth above until Landlord has approved the Preliminary Plans. 

  

	 	3.	Promptly after approval of the Preliminary Plans, Tenant shall cause Contractor to furnish Landlord with an estimate of the cost of the Tenant Improvements as shown on the
Preliminary Plans (the “Estimated Work Cost”). The Estimated Work Cost shall separately itemize all costs to complete the improvements described on Exhibit B-1 hereto. 

  

 B–2 

	 	4.	Following Contractor’s calculation of the Estimated Work Cost, Tenant shall cause Tenant’s Architect to prepare detailed construction drawings and specifications (the
“Working Drawings”) for the Tenant Improvements based strictly upon the Preliminary Plans, except as otherwise agreed in writing by Landlord and Tenant. Tenant shall be responsible for all costs associated with the Working Drawings.
The Working Drawings shall be completed no later than April 15, 2001. The foregoing, any delay in the completion of the Working Drawings beyond April 15, 2001 shall constitute a Tenant Delay for all purposes of this Lease and shall not lead to a
postponement of or adjustment to the Commencement Date. 

  

	 	5.	Landlord shall have ten (10) days from its receipt of the Working Drawings to approve or disapprove the same. Landlord’s approval of the Working Drawings shall not be
unreasonably withheld, conditioned or delayed. If Landlord disapproves the Working Drawings, then within five (5) business days thereafter, Landlord shall meet with Tenant’s Architect and Tenant to discuss, or shall submit to the Tenant’s
Architect and Tenant in writing, the reasons for Landlord’s disapproval. Within five (5) business days following such meeting or submission, Tenant shall cause Tenant’s Architect to revise the same and to submit new Working Drawings to
Landlord, and the same procedure will be repeated as set forth above until Landlord has approved the Working Drawings (the “Approved Plans”). Upon approval of the Working Drawings, Landlord shall deliver to Tenant a list of Tenant
Improvements to be removed by Tenant, at Tenant’s cost and expense in accordance with Paragraph 11.2 of the Lease, upon expiration of the Term or earlier termination of the Lease. Notwithstanding the foregoing, during the preparation of the
Working Drawings, Landlord shall, upon Tenant’s request, advise Tenant of items that will be required to be removed pursuant to the previous sentence. 

  

	 	6.	Within ten (10) business days after Landlord’s approval of the Approved Plans, Tenant shall cause Contractor to furnish to Landlord a cost estimate for the Tenant Improvements
based upon the Approved Plans (the “Final Cost Quotation”). The Final Cost Quotation shall separately itemize all costs to complete the improvements described on Exhibit B-1 hereto. If the Final Cost Quotation is
greater than the Tenant Improvement Allowance, Tenant shall be responsible for the difference between the Tenant Improvement Allowance and the Final Cost Quotation (the “Excess Tenant Improvements Cost”). If the Tenant Improvement
Allowance exceeds the Final Cost Quotation, then the Excess Tenant Improvements Cost shall be zero. 

  

	 	7.	 Landlord and Tenant shall make progress payments on a pro rata basis (in the proportion that the Tenant Improvement Allowance paid by Landlord and the Excess Tenant
Improvements Cost paid by Tenant, if any, bear to the Final Cost Quotation) from time to time as the Tenant Improvements are constructed in the Premises. Tenant shall pay its pro rata share of any progress payments directly to Contractor or
subcontractors, as appropriate, and Landlord shall pay its pro rata share of any progress payments directly to Tenant’s Contractor or subcontractors, as appropriate, subject to a reasonable retention as determined by Landlord. Landlord shall be
entitled to suspend or terminate construction of the Tenant Improvements and to declare Tenant in default in accordance with the terms of the Lease if payment by Tenant of Tenant’s pro rata 

  

 B–3 

	 	 
share of any progress payment has not been received by Contractor when due, as required hereunder. Moreover, Landlord shall not be required to pay its pro
rata share of any progress payment until such time as Landlord receives from Tenant a draw request in a form approved by Landlord, which draw request shall be executed by Tenant, Tenant’s Architect and Tenant’s Contractor, together with a
conditional lien waiver duly executed by Tenant’s Contractor as to the progress payment then being requested by Tenant hereunder and an unconditional lien waiver for the immediately preceding progress payment made by Landlord. All lien waivers
shall comply with California law regarding materialmen and mechanic’s liens. 

  

	 	8.	In the event that the Tenant Improvement Allowance exceeds the Final Cost Quotation, then promptly following the substantial completion of the Tenant Improvements, the payment in
full of all costs of designing and constructing the Tenant Improvements, and the receipt by Landlord of unconditional lien waivers from Tenant’s Contractor, subcontractors and material suppliers for all amounts due in connection with the Tenant
Improvements, Landlord shall disburse the remaining Tenant Improvement Allowance to Tenant in a single lump-sum disbursement. 

  

	C.	Tenant Improvement Construction 

  

	 	1.	All Tenant Improvements to be constructed or installed in the Premises shall be performed by Contractor in accordance with the Approved Plans, subject to any changes agreed to by
Landlord and Tenant in writing. Landlord shall have no obligation to Tenant for defects in design, workmanship or materials in connection with the Tenant Improvements. Any changes to the Approved Plans shall require the written approval of Landlord
and Tenant, which approval shall not be unreasonably withheld, conditioned or delayed. All such changes must be evidenced by a written change order executed by Landlord and Tenant or their respective representatives describing the change required in
the Approved Plans, and the cost of such changes shall be paid in accordance with the terms of this Exhibit B. 

  

	 	2.	Tenant shall cause Contractor to construct the Tenant Improvements in a manner designed to avoid interference with the construction of the Base Building Improvements. Landlord and
Tenant shall each use good faith efforts to reasonably resolve any issues or conflicts that may arise during the course of constructing the Tenant Improvements and the Base Building Improvements. Entry by Contractor in accordance with this
Exhibit B shall not constitute Tenant’s occupancy of the Premises under Paragraph 3 of the Lease; however, Tenant shall comply with all terms and conditions of the Lease (excluding only, prior to the Commencement Date, the
obligation to pay Rent) during Contractor’s occupancy of and work within the Premises. Tenant shall be responsible for maintaining harmonious labor relations with all contractors and service providers servicing the Premises.

  

	 	3.	 In addition to and without limitation on the requirements set forth in the Lease, Tenant shall ensure that Contractor and all subcontractor(s) procure and maintain
in full force and effect during the course of construction a “broad form” commercial general liability and property damage policy of insurance naming, Landlord, Tenant and 

  

 B–4 

	 	 
Landlord’s lenders as additional insureds. The minimum limit of coverage of the aforesaid policy shall be in the amount of not less than Three Million
Dollars ($3,000,000) for injury or death of one person in any one accident or occurrence and in the amount of not less than Three Million Dollars ($3,000,000) for injury or death of more than one person in any one accident or occurrence, and shall
contain a severability of interest clause or a cross liability endorsement. Such insurance shall further insure Landlord and Tenant against liability for property damage of at least One Million Dollars ($1,000,000). 

  

	D.	Deferred Allowance 

  
 In addition to the Tenant Improvement Allowance, Landlord agrees to provide Tenant up to
                                        
                 (viz.,         per square foot) to be applied toward completion of the Tenant Improvements (the “Deferred Allowance”) after the Tenant Improvement Allowance has been
disbursed. The Deferred Allowance shall be subject to adjustment upon the final determination of the Premises square footage by Landlord’s Architect. The Deferred Allowance shall be disbursed to Tenant, if at all, in a single lump-sum
disbursement, shall be available to reimburse Tenant for costs actually incurred in connection with the design and construction of the Tenant Improvements (except that no portion of the Deferred Allowance may be used to pay the costs of Tenant
Improvements that constitute furniture, equipment or trade fixtures or result in changes to the Base Building Improvements), shall be disbursed by Landlord upon the submission of draw requests and other documentation similar in form and content to
that required in connection with the disbursement of the Tenant Improvement Allowance, and shall be subject to a reasonable retention as determined by Landlord. Tenant shall provide the aforesaid draw request and associated documentation to Landlord
not less than ninety (90) days’ prior to the date of the disbursement of the Deferred Allowance. The Deferred Allowance shall be repayable by Tenant to Landlord in substantially equal self-amortizing monthly installments over the remaining
initial Term of the Lease (from and after the date of disbursement of the Deferred Allowance), together with interest on the balance outstanding from time to time from the date of disbursement at the following rates: interest shall accrue on the
initial
                                        
                         disbursed by Landlord at the per annum rate of          and on
the second
                                        
                 disbursed by Landlord at the per annum rate of          Such installments shall be payable on the first
day of each month concurrently with the payment of Monthly Base Rent, and shall be deemed a part of the “Rent” hereunder for all purposes of this Lease. Concurrently with the disbursement of the Deferred Allowance, Landlord and
Tenant shall execute a Deferred Allowance Amortization Memorandum in the form of Exhibit I hereto. Notwithstanding anything herein to the contrary, in the event the Lease shall terminate for any reason prior to the scheduled expiration
thereof, the Deferred Allowance and all accrued and unpaid interest thereon shall immediately become due and payable in full. 
  

	E.	General 

  

	 	1.	 All drawings, space plans, plans and specifications for any improvements or installations in the Premises are expressly subject to Landlord’s prior written
approval, which approval shall not be unreasonably withheld, conditioned or delayed. Any approval by Landlord of any drawings, plans or specifications prepared on behalf of 

  

 B–5 

	 	 
Tenant including, without limitation, any Preliminary Plans, Working Drawings or Approved Plans, or any revisions thereto, shall not in any way bind
Landlord, create any responsibility or liability on the part of the Landlord for the completeness of the same, their design sufficiency or compliance with applicable statutes, ordinances or regulations or constitute a representation or warranty by
Landlord as to the adequacy or sufficiency of such drawings, plans or specifications, or the improvements to which they relate, but such approval shall merely evidence the consent of Landlord to such drawings, plans or specifications.

  

	 	2.	The Tenant Improvement Allowance (including, without limitation, the Warm Shell Allowance) and Deferred Allowance shall be used by Tenant to construct Tenant Improvements in the
entire Premises and may not be used to improve only a portion or portions of the Premises. Tenant shall be deemed to have satisfied its obligations under this Section E.2 if Tenant constructs or installs, as appropriate, within the entire Premises,
at a minimum, acoustical ceilings, HVAC, floor coverings, light fixtures and walls with a paint finish, all in accordance with applicable Laws and to a condition which allows for full legal occupancy of the Building, as evidenced by the receipt of a
certificate of occupancy from the City. Notwithstanding the foregoing, Tenant shall only be required to improve the warehouse facilities, storerooms, electrical rooms and data rooms located within the Premises to the same condition to which such
facilities and rooms were improved within the 901 Gateway Premises following the completion of construction of Tenant Improvements (as defined in the 901 Gateway Lease) in the 901 Gateway Premises. 

  

	 	3.	Any failure by Tenant to pay any amounts due hereunder shall have the same effect under the Lease as a failure to pay Rent and any failure by Tenant to perform any of its other
obligations hereunder shall be subject to Paragraph 24 of the Lease. 

  

	 	4.	Tenant shall provide Landlord with as-built plans and specifications of the Tenant Improvements within forty-five (45) days after the Commencement Date. 

  

			
	INITIALS:
		
	TENANT:	 	 /s/    A. Greg Sturmer

	 	 	

		
	LANDLORD:	 	 /s/    James C. Buie, Jr.

	 	 	

  

 B–6 

 EXHIBIT B-1 
  
 DESCRIPTION OF “WARM SHELL”
IMPROVEMENTS 
  

	 	•	Elevator(s) per code 

  

	 	•	Stairs in excess of two (2) exit stairs provided as part of the 951 Gateway Preliminary Specifications 

  

	 	•	Restrooms per code 

  

	 	•	HVAC for standard office use (laboratory upgrades will not be funded out of the Warm Shell Allowance) 

  

	 	•	Standard office lobby 

  

	 	•	Electrical for standard office use (laboratory upgrades will not be funded out of the Warm Shell Allowance) 

  

	 	•	Rooftop mechanical platform 

  

	 	•	Roof Screens 

  

 B-1–1 

 EXHIBIT C 
  
 ADDITIONAL OPERATIONAL GUIDELINES 
  
 As a component of the Tenant Improvements and any Alterations made by Tenant
to the Premises, Tenant shall install fume hoods, as well as a rooftop venting and exhaust system designed to increase the velocity of exhaust such that any odors shall be discharged high into the atmosphere in order to minimize the risk of odors
detectable at ground level. In addition, Tenant shall install and utilize such additional venting, exhaust and quenching systems, including, without limitation, base quenching, distillation units, acid quenching, and mechanical exhaust/filtration
systems, as appropriate to reduce the risk of emanation of such odors. 
  

 C–1 

 EXHIBIT D 
  
 RULES AND REGULATIONS 
  
 This exhibit, entitled “Rules and Regulations,” is and shall
constitute Exhibit D to the Lease Agreement, dated as of the Lease Date, by and between Landlord and Tenant for the Premises. The terms and conditions of this Exhibit D are hereby incorporated into and are made a part of the Lease.
Capitalized terms used, but not otherwise defined, in this Exhibit D have the meanings ascribed to such terms in the Lease. 
  
 1. Tenant shall not use any method of heating or air conditioning other than that approved by Landlord in writing without the prior written consent of
Landlord, which consent shall not to be unreasonably withheld, conditioned or delayed. 
  
 2. All window coverings installed by Tenant and visible from the outside of the Building require the prior written approval of Landlord. 
  
 3. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance or any flammable or
combustible materials on or around the Project or the Adjacent Properties, except to the extent that Tenant is permitted to use the same in the Premises under the terms of Paragraph 32 of the Lease. 
  
 4. Tenant shall not alter any lock or install any new locks or bolts on any
door at the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. 
  
 5. Tenant shall not make any duplicate keys without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned
or delayed. 
  
 6. Tenant shall park motor vehicles in parking
areas designated by Landlord, including areas for loading and unloading. During those periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow around the Building or the Project and loading and unloading areas of
other tenants. 
  
 7. Tenant shall not disturb, solicit or canvas
any tenant or other occupant of the Building or Project and shall cooperate to prevent same. 
  
 8. No person shall go on the roof without Landlord’s permission except as required to repair and maintain the same as required under the Lease. 
  
 9. Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to
the structure of the Building, to such a degree as to be objectionable to Landlord or other tenants, shall be placed and maintained by Tenant, at Tenant’s expense, on vibration isolators or in noise-dampening housing or other devices sufficient
to eliminate noise or vibration. 
  
 10. All goods, including
material used to store goods, delivered to the Premises of Tenant shall be immediately moved into the Premises and shall not be left in parking or receiving areas 

  

 D–1 

 
overnight. During the period of construction of the Tenant Improvements and any Alterations, all construction materials shall be stored in a manner and a
location mutually acceptable to Landlord and Tenant. 
  
 11.
Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained in suitable receptacles stored behind screened enclosures at locations approved by Landlord. 
  
 12. Tenant shall not store or permit the storage or placement of goods or
merchandise in or around the Common Areas surrounding the Premises. No displays or sales or merchandise shall be allowed in the Parking Areas or other Common Areas. 
  
 13. Tenant shall not permit any animals, including, but not limited to, any household pets, to be brought or kept in or
about the Premises, the Building, the Project or any of the Common Areas which would violate applicable Laws or constitute a nuisance to the Premises, the Building or the Project. Tenant shall prior to the Commencement Date and thereafter from time
to time upon the request of Landlord provide to Landlord a written plan for the handling and disposal of all animals used by Tenant in the conduct of its business, which plan shall be subject to the written approval of Landlord. 
  

			
	INITIALS:
		
	TENANT:	 	 /s/    A. Greg Sturmer

	 	 	

		
	LANDLORD:	 	 /s/    James C. Buie, Jr.

	 	 	

  

 D–2 

 EXHIBIT E 
  
 HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE 
  
 Your cooperation in this matter is appreciated. Initially, the information
provided by you in this Hazardous Materials Disclosure Certificate is necessary for the Landlord to evaluate your proposed uses of the premises (the “Premises”) and to determine whether to enter into a lease agreement with you as
tenant. If a lease agreement is signed by you and the Landlord (the “Lease Agreement”), on an annual basis in accordance with the provisions of Paragraph 32 of the Lease Agreement, you are to provide an update to the information
initially provided by you in this certificate. Any questions regarding this certificate should be directed to, and when completed, the certificate should be delivered to: 
  

			
	Landlord:	  	 HMS Gateway Office L.P.
 c/o Hines
 651 Gateway Boulevard, Suite 1140
 South San Francisco, California
94080
 Phone: (650)794-1111

  
 Name of (Prospective)
Tenant: Advanced Medicine, Inc. 
  

			
	Mailing Address:	 	 
	 	 	

	 
	

  

			
	Contact Person, Title and Telephone Number(s):	 	 
	 	 	

  

			
	Contact Person for Hazardous Waste Materials Management and Manifests and Telephone Number(s):	 	 
	 	 	

	 	 	 
	

  

			
	Address of (Prospective) Premises:	 	 
	 	 	

	Length of (Prospective) initial Term:	 	 
	 	 	

	 
	

  

	1.	GENERAL INFORMATION: 

  
 Describe the proposed operations to take place in, on, or about the Premises, including, without limitation, principal products processed,
manufactured or assembled, and services and activities to be provided or otherwise conducted. Existing tenants should describe any proposed changes to on-going operations. 
  

	
	 
	

	 
	

  

 E–1 

	2.	USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS 

  

	 	2.1	Will any Hazardous Materials (as hereinafter defined) be used, generated, treated, stored or disposed of in, on or about the Premises? Existing tenants should describe any Hazardous
Materials which continue to be used, generated, treated, stored or disposed of in, on or about the Premises. 

  

			
	 Wastes
	  	 Yes  ̈                     No  ̈

		
	 Chemical Products
	  	 Yes  ̈                     No  ̈

		
	 Other
	  	 Yes  ̈                     No  ̈

  

													
	 	 	If Yes is marked, please explain:	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	 	2.2	If Yes is marked in Section 2.1, attach a list of any Hazardous Materials to be used, generated, treated, stored or disposed of in, on or about the Premises, including the
applicable hazard class and an estimate of the quantities of such Hazardous Materials to be present on or about the Premises at any given time; estimated annual throughput; the proposed location(s) and method of storage (excluding nominal amounts of
ordinary household cleaners and janitorial supplies which are not regulated by any Environmental Laws, as hereinafter defined); and the proposed location(s) and method(s) of treatment or disposal for each Hazardous Material, including the estimated
frequency, and the proposed contractors or subcontractors. Existing tenants should attach a list setting forth the information requested above and such list should include actual data from ongoing operations and the identification of any variations
in such information from the prior year’s certificate. 

  

	3.	STORAGE TANKS AND SUMPS 

  

	 	3.1	Is any above or below ground storage or treatment of gasoline, diesel, petroleum, or other Hazardous Materials in tanks or sumps proposed in, on or about the Premises? Existing
tenants should describe any such actual or proposed activities. 

  
 Yes  ̈
                     No  ̈ 
  

													
	 	 	If yes, please explain:	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

 E–2 

	4.	WASTE MANAGEMENT 

  

	 	4.1	Has your company been issued an EPA Hazardous Waste Generator I.D. Number? Existing tenants should describe any additional identification numbers issued since the previous
certificate. 

  
 Yes  ̈                      No  ̈ 
  

	 	4.2	Has your company filed a biennial or quarterly reports as a hazardous waste generator? Existing tenants should describe any new reports filed. 

  
 Yes  ̈                      No  ̈ 
  
 If yes, attach a copy of the most recent report filed. 
  

	5.	WASTEWATER TREATMENT AND DISCHARGE 

  

	 	5.1	Will your company discharge wastewater or other wastes to: 

  
  ̈ storm drain?
                      ̈ sewer?

  
  ̈ surface water?                   ̈ no wastewater or other wastes discharged. 
  
 Existing tenants should indicate any actual discharges. If so, describe the nature of any proposed or actual discharge(s). 
  

													
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	 	5.2	Will any such wastewater or waste be treated before discharge? 

  
 Yes  ̈
                     No  ̈ 
  
 If yes, describe the type of treatment proposed to be conducted. Existing
tenants should describe the actual treatment conducted. 
  

													
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

 E–3 

	6.	AIR DISCHARGES 

  

	 	6.1	Do you plan for any air filtration systems or stacks to be used in your company’s operations in, on or about the Premises that will discharge into the air; and will such air
emissions be monitored? Existing tenants should indicate whether or not there are any such air filtration systems or stacks in use in, on or about the Premises which discharge into the air and whether such air emissions are being monitored.

  
 Yes  ̈                      No  ̈ 
  

													
	 	 	If yes, please describe:	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	 	6.2	Do you propose to operate any of the following types of equipment, or any other equipment requiring an air emissions permit? Existing tenants should specify any such equipment being
operated in, on or about the Premises. 

  
  ̈ Spray booth(s)
                      ̈ Incinerator(s)

  
  ̈ Dip tank(s)                            ̈ Other (Please describe) 
  
  ̈ Drying oven(s)
                      ̈ No Equipment
Requiring Air Permits 
  

													
	 	 	If yes, please describe:	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	 	6.3	Please describe (and submit copies of with this Hazardous Materials Disclosure Certificate) any reports you have filed in the past [thirty-six] months with any governmental or
quasi-governmental agencies or authorities related to air discharges or clean air requirements and any such reports which have been issued during such period by any such agencies or authorities with respect to you or your business operations.

  

 E–4 

	7.	HAZARDOUS MATERIALS DISCLOSURES 

  

	 	7.1	Has your company prepared or will it be required to prepare a Hazardous Materials management plan (“Management Plan”) or Hazardous Materials Business Plan and Inventory
(“Business Plan”) pursuant to Fire Department or other governmental or regulatory agencies’ requirements? Existing tenants should indicate whether or not a Management Plan is required and has been prepared. 

 

					
	 Yes  ̈
	 	 No  ̈
	 	 

  
 If yes, attach a copy
of the Management Plan or Business Plan. Existing tenants should attach a copy of any required updates to the Management Plan or Business Plan. 
  

	 	7.2	Are any of the Hazardous Materials, and in particular chemicals, proposed to be used in your operations in, on or about the Premises listed or regulated under Proposition 65?
Existing tenants should indicate whether or not there are any new Hazardous Materials being so used which are listed or regulated under Proposition 65. 

  

					
	 Yes  ̈
	 	 No  ̈
	 	 

  

													
	 	 	If yes, please explain:	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	8.	ENFORCEMENT ACTIONS AND COMPLAINTS 

  

	 	8.1	With respect to Hazardous Materials or Environmental Laws, has your company ever been subject to any agency enforcement actions, administrative orders, or consent decrees or has
your company received requests for information, notice or demand letters, or any other inquiries regarding its operations? Existing tenants should indicate whether or not any such actions, orders or decrees have been, or are in the process of being,
undertaken or if any such requests have been received. 

  

					
	 Yes  ̈
	 	 No  ̈
	 	 

  
 If yes, describe the
actions, orders or decrees and any continuing compliance obligations imposed as a result of these actions, orders or decrees and also describe any requests, notices or demands, and attach a copy of all such documents. Existing tenants should
describe and attach a copy of any new actions, orders, decrees, requests, notices or demands not already delivered to Landlord pursuant to the provisions of Paragraph 32 of the Lease Agreement. 
  

													
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

 E–5 

	 	8.2	Have there ever been, or are there now pending, any lawsuits against your company regarding any environmental or health and safety concerns? 

  

					
	 Yes  ̈
	 	 No  ̈
	 	 

  
 If yes, describe any
such lawsuits and attach copies of the complaint(s), cross-complaint(s), pleadings and other documents related thereto as requested by Landlord. Existing tenants should describe and attach a copy of any new complaint(s), cross-complaint(s),
pleadings and other related documents not already delivered to Landlord pursuant to the provisions of Paragraph 32 of the Lease Agreement. 
  

													
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	 	8.3	Have there been any problems or complaints from adjacent tenants, owners or other neighbors at your company’s current facility with regard to environmental or health and safety
concerns? Existing tenants should indicate whether or not there have been any such problems or complaints from adjacent tenants, owners or other neighbors at, about or near the Premises and the current status of any such problems or complaints.

  

					
	 Yes  ̈
	 	 No  ̈
	 	 

  
 If yes, please
describe. Existing tenants should describe any such problems or complaints not already disclosed to Landlord under the provisions of the signed Lease Agreement and the current status of any such problems or complaints. 
  

													
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 
	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	
	 	 

  

	9.	PERMITS AND LICENSES 

  

	 	9.1	Attach copies of all permits and licenses issued to your company with respect to its proposed operations in, on or about the Premises, including, without limitation, any Hazardous
Materials permits, wastewater discharge permits, air emissions permits, and use permits or approvals. Existing tenants should attach copies of any new permits and licenses as well as any renewals of permits or licenses previously issued.

  
 As used herein, “Hazardous
Materials” shall mean and include any substance that is or contains (a) any “hazardous substance” as now or hereafter defined in § 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended (“CERCLA”) (42 U.S.C. § 9601 et seq.) or any regulations promulgated under CERCLA; (b) any “hazardous waste” as now or hereafter defined in the Resource Conservation and Recovery Act, as
amended (“RCRA”) (42 U.S.C. § 6901 et seq.) or any regulations promulgated under RCRA; 

  

 E–6 

 
(c) any substance now or hereafter regulated by the Toxic Substances Control Act, as amended (“TSCA”) (15 U.S.C. § 2601 et seq.)
or any regulations promulgated under TSCA; (d) petroleum, petroleum by-products, gasoline, diesel fuel, or other petroleum hydrocarbons; (e) asbestos and asbestos-containing material, in any form, whether friable or non-friable; (i) polychlorinated
biphenyls; (g) lead and lead-containing materials; or (h) any additional substance, material or waste (A) the presence of which on or about the Premises (i) requires reporting, investigation or remediation under any Environmental Laws (as
hereinafter defined), (ii) causes or threatens to cause a nuisance on the Premises or any adjacent property or poses or threatens to pose a hazard to the health or safety of persons on the Premises or any adjacent property, or (iii) which, if it
emanated or migrated from the Premises, could constitute a trespass, or (B) which is now or is hereafter classified or considered to be hazardous or toxic under any Environmental Laws; and “Environmental Laws” shall mean and include
(a) CERCLA, RCRA and TSCA; and (b) any other federal, state or local laws, ordinances, statutes, codes, rules, regulations, orders or decrees now or hereinafter in effect relating to (i) pollution, (ii) the protection or regulation of human health,
natural resources or the environment, (iii) the treatment, storage or disposal of Hazardous Materials, or (iv) the emission, discharge, release or threatened release of Hazardous Materials into the environment. 
  

 E–7 

 The undersigned hereby acknowledges and agrees that this Hazardous Materials Disclosure Certificate is
being delivered to Landlord in connection with the evaluation of a Lease Agreement and, if such Lease Agreement is executed, will be attached thereto as an exhibit. The undersigned further acknowledges and agrees that if such Lease Agreement is
executed, this Hazardous Materials Disclosure Certificate will be updated from time to time in accordance with Paragraph 32 of the Lease Agreement. The undersigned further acknowledges and agrees that the Landlord and its partners, lenders and
representatives may, and will, rely upon the statements, representations, warranties, and certifications made herein and the truthfulness thereof in entering into the Lease Agreement and the continuance thereof throughout the term, and any renewals
thereof, of the Lease Agreement. I [print name]                             , acting with full
authority to bind the (proposed) Tenant and on behalf of the (proposed) Tenant, certify, represent and warrant that the information contained in this certificate is true and correct. 
  

			
	 (PROSPECTIVE) TENANT:
  
 ADVANCED MEDICINE, INC.,
 a Delaware corporation

		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

		
	Date:	 	 
	 	 	

			
		
	INITIALS:	 	 
		
	TENANT:	 	 /s/    A. Greg Sturmer

	 	 	

		
	LANDLORD:	 	 /s/    James C. Buie, Jr.

	 	 	

  

 E–8 

 EXHIBIT F 
  
 TENANT’S PROPERTY 
  
 Laboratory related furniture and equipment including: 
  
 benches and tables 
 casework 
 biosafety, laminar flow, and fume
hoods 
 cages/fencing 
 DI water
system 
 vacuum pumps 
 compressed air 
 nitrogen manifold 
  
 Office related furniture and equipment including: 
  
 open office partitions 
 telephone and network
equipment 
 reception desk 
 lobby furniture 
 lobby display cases 
 appliances 
 interior signage 
  

 F–1 

 EXHIBIT G 
  

					
	 RECORDING REQUESTED BY AND
 WHEN RECORDED RETURN TO:
  
  
	 	 
	
	 	 
	 	 	 	 	 
	
	 	 
	 	 	 	 	 
	
	 	 
	Attention:	 	 	 	 
	 	 	
	 	 

 (Space above this line for Recorder’s use) 
  
 MEMORANDUM OF LEASE

  
 THIS MEMORANDUM
OF LEASE is executed as of January 1, 2001, by and between HMS GATEWAY OFFICE, L.P., a Delaware limited partnership (“Landlord”), and ADVANCED
MEDICINE, Inc., a Delaware corporation (“Tenant”). Landlord has previously leased to Tenant a portion of that certain real property described on Exhibit A attached hereto and incorporated herein by
reference, consisting of the building commonly known as 951 Gateway Boulevard located in South San Francisco, California, commencing on January 1, 2001 and terminating on March 31, 2012 on the terms and conditions set forth in that certain Lease
between Landlord and Tenant dated as of January 1, 2001 (the “Off Record Lease”). Landlord has also granted to Tenant options to renew the term of the Lease for two (2) additional periods of five (5) years each in accordance with
the terms and conditions of the Off Record Lease. 
  

 G–1 

 IN WITNESS WHEREOF, the undersigned have executed this
Memorandum of Lease so that third parties might have notice of the lease by Landlord and Tenant herein. 
  

											
	LANDLORD:	 	 HMS GATEWAY OFFICE, L.P.,
 a Delaware limited partnership

			
	 	 	By:	 	 Hines Gateway Office, L.P.,
 Administrative Partner

				
	 	 	 	 	 By:
	 	 Hines Interests Limited Partnership,
 General Partner

					
	 	 	 	 	 	 	 By:
	 	 Hines Holdings, Inc.,
 General Partner

						
	 	 	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Its:
	 	 
	 	 	 	 	 	 	 	 	 	 	

  

											
	TENANT:	 	 ADVANCED MEDICINE, INC.,
 a Delaware corporation

			
	 	 	 By:
	 	 
	 	 	 	 	

	 	 	 Name:
	 	 
	 	 	 	 	

	 	 	 Its:
	 	 
	 	 	 	 	

  

			
	 INITIALS:

		
	 TENANT:
	 	 /s/    A. Greg Sturmer

	 	 	

		
	 LANDLORD:
	 	 /s/    James C. Buie, Jr.

	 	 	

  

 G–2 

 EXHIBIT H 
  
 DEFERRED ALLOWANCE AMORTIZATION MEMORANDUM 
  

			
		
	LANDLORD:	  	HMS GATEWAY OFFICE, L.P.
		
	TENANT:	  	ADVANCED MEDICINE, INC.
		
	LEASE DATE:	  	January 1, 2001
		
	PREMISES:	  	Located at 951 Gateway Boulevard, South San Francisco, California

  
 Tenant hereby
acknowledges that Landlord has provided a Deferred Allowance to Tenant in the amount of                      Dollars
($                     ) pursuant to Paragraph D of Exhibit B to the Lease. Subject to the terms of the Lease and said
Exhibit B, the Deferred Allowance shall be repayable by Tenant, together with interest on the principal balance outstanding from time to time at the rates set forth below: 
  
                      Dollars
($                     ) of the Deferred Allowance shall bear interest at the rate of                                  per
annum; and 
  
                      Dollars
($                     ) of the Deferred Allowance shall bear interest at the rate of
                         per annum. 
  
 The Deferred Allowance, together with interest at the rates set forth above, shall be payable in monthly installments of
                         Dollars
($                     ) each. Said installments shall be payable on the first day of each month during the initial Term of the Lease
(commencing with the first day of the first month following the disbursement of the Deferred Allowance) concurrently with the payment of Base Rent. 
  

					
	TENANT:	 	 ADVANCED MEDICINE, INC.,
 a Delaware corporation

			
	 	 	By:	 	 
	 	 	 	 	

	 	 	 Name:
	 	 
	 	 	 	 	

	 	 	 Title:
	 	 
	 	 	 	 	

  

 H–1 

 Approved and Agreed:  
  
 LANDLORD: 
  
 HMS GATEWAY OFFICE, L.P., 
 a Delaware limited partnership 

									
		
	By:	 	 Hines Gateway Office, L.P.,
 General
Partner

			
	 	 	By:	 	 Hines Interests Limited Partnership,
 General
Partner

				
	 	 	 	 	By:	 	 Hines Holdings, Inc.,
 General
Partner

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	

  

 H–2Agreement dated as of August 5, 2003

  
 Exhibit 10.6

  
 *CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND
FILED 
 SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN 
 REQUESTED WITH RESPECT TO THE OMITTED PORTIONS 
  
 AGREEMENT 
  
 between 
  
 THRESHOLD PHARMACEUTICALS INC.

  
 and 
  
 BAXTER INTERNATIONAL INC. 
  
 and 
  
 BAXTER ONCOLOGY GmbH 
  
 For the Licensing and Development of Glufosfamide 
  

 THIS AGREEMENT is made, as of the date of signature of the last party to affix its signature hereto, 
  
 by and among 
  
 THRESHOLD Pharmaceuticals Inc., a corporation organized and existing under the laws of Delaware of the United States of America and
having its head office at 951 Gateway Boulevard, Suite 3A, South San Francisco, CA 94080, United States of America (hereinafter referred to as “THRESHOLD”), 
  
 and 
  
 Baxter International Inc., a corporation organized and existing under the laws of Delaware of the United States of America and having its headquarters at One
Baxter Parkway, Deerfield, Illinois 60015-4633. United States of America (hereinafter referred to as “BAXTER”) 
  
 and 
  
 Baxter Oncology GmbH, a corporation organized and existing under the laws of the Federal Republic of Germany, having its head office at Daimlerstrasse 40, 60314 Frankfurt, Federal Republic of Germany (hereinafter referred to as
“BAXTER ONCOLOGY”); 
  
 WHEREAS BAXTER and/or BAXTER ONCOLOGY are the
owners of certain proprietary information, patents and know-how related to Glufosfamide, with all right, title and interest thereto; 
  
 WHEREAS BAXTER ONCOLOGY is the licensee of certain patents related to Glufosfamide, owned by BAXTER, with all right, title and interest thereto 
  
 WHEREAS THRESHOLD desires to obtain an exclusive license under the patents and proprietary
information and know-how belonging or licensed to BAXTER and BAXTER ONCOLOGY relating to the composition referred to in the recital above to develop and market a product for human and animal therapeutic uses primarily in tumor diseases. 

 

 2 

 NOW THEREFORE FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE
PARTIES INTENDING TO BE LEGALLY BOUND HEREBY, AGREE AS FOLLOWS: 
  

	1.	Definitions 

  
 In this Agreement the following words shall have the following meanings, unless the context otherwise requires: 
  

	 	1.1	“Affiliate” means any firm, person or company which controls, is controlled by or is under common control with a Party where “control” means the
possession, directly or indirectly of the power to direct or cause the direction of the management and policies of such firm, person or company whether through the ownership of voting securities, by contract or otherwise, or the ownership either
directly or indirectly of fifty percent (50%) or more of the voting securities of such firm, person or company (or such smaller maximum ownership interest in those countries where foreign ownership is restricted, but not below forty percent (40%).

  

	 	1.2	“Animal Studies” means those studies approved by THRESHOLD and conducted by BAXTER ONCOLOGY pursuant to Clause 6.2, the results of which provide THRESHOLD
sufficient information upon which to base a decision as to whether to proceed with development of a Licensed Product. 

  

	 	1.3	“BAXTER ONCOLOGY Know-How” means all information in BAXTER ONCOLOGY’s or BAXTER’s possession or under their control at the date of this Agreement or which
comes into their possession or under their control during the term hereof relating to Licensed Product and including, but not limited to, all Manufacturing Know How. 

  

	 	1.4	“BAXTER ONCOLOGY Patents” means all Patents and patent applications set forth in Part A of Schedule 1.4 

  

	 	1.5	“Clinical Trial” means a clinical trial to demonstrate the safety or efficacy of Licensed Product in the Field. 

  

	 	1.6	“Commercial Delivery” means the sale to a Customer of Licensed Product. 

  

	 	1.7	“CSC” means the Commercial Steering Committee which shall be appointed and shall operate in accordance with the provisions of Clause 4. 

  

	 	1.8	“Customer” means any third party, other than an Affiliate or Sub-Licensee of THRESHOLD to whom THRESHOLD or its Affiliates or Sub-Licensee supplies Licensed Product
in a country where such Licensed Product has been approved for sale (including pricing approval where applicable). 

  

	 	1.9	“Development Data” means all data, whether raw or analyzed, charts, studies, summaries, analyses, reports, know-how and other information relating to Licensed
Product generated by or on behalf of THRESHOLD in performing the Development Plan. 

  

	 	1.10	“Development Plan” means the plan directed to the development of Licensed Product to be prepared by THRESHOLD within ninety (90) days of the Effective Date, as
updated and/or modified from time to time by THRESHOLD. 

  

	 	1.11	 “Drug Master File” means the bulk and finished product in final dosage form manufacturing information referenced in a Licensed Product’s
application for marketing approval in the Territory, in such form as is 

  

 3 

	 	 
acceptable to the Regulatory Agency with whom it has been, or is intended to be, filed. 

  

	 	1.12	“DSC” means the Development Steering Committee which shall be appointed and shall operate in accordance with the provisions of Clause 4. 

 

	 	1.13	“Effective Date” means the first business day after satisfaction of the condition set forth in Clause 3.1. 

  

	 	1.14	“FDA” means the Food and Drug Administration of the United States or any successor thereto. 

  

	 	1.15	“Field” means the cure, mitigation, treatment, prevention or diagnosis of (i) cancer in humans and animals, including, but not limited to, benign, pre-malignant,
metastatic and malignant tumors and (ii) such other activities as may be permitted to BAXTER and/or BAXTER ONCOLOGY under their agreement with Deutsches Krebsforschungszentrum Stiftung des Offentlichen Rechts, a copy of which is attached hereto as
Schedule 1.15 

  

	 	1.16	“Glufosfamide” means ß-D-Glucopyranosyl-N,N ́-di-(2-chloroethyl)-phosphoric acide diamide. 

  

	 	1.17	“Improvement” means any new technique, application, formulation or chemical or biological analog (i.e. metabolite) or derivative developed by or on behalf of a
Party under the Licensed Patents or the Licensed Know-How. For the avoidance of doubt the definition of Improvement excludes Development Data. 

  

	 	1.18	“IND” means an investigational new drug application relating to a Licensed Product filed with the FDA pursuant to 21 C.F.R. Part 312, or such similar application
filed with or submitted to a similar Regulatory Agency in another country, including but not limited to amendments thereto. 

  

	 	1.19	“Indication” means pancreatic cancer. 

  

	 	1.20	“Initiate” means to administer the first dose of Licensed Product to the first patient in a Clinical Trial. 

  

	 	1.21	“Licensed Know How” means the BAXTER ONCOLOGY Know How and the Regulatory Documents. 

  

	 	1.22	“Licensed Patents” means the BAXTER ONCOLOGY Patents and Manufacturing Patents. 

  

	 	1.23	“Licensed Product” means the product known as Glufosfamide together with its salts, solvates, esters, analogs, mimetics, and chemical and biological derivatives.

  

	 	1.24	“Manufacture” means all activities necessary or required to manufacture the Licensed Product in bulk and finished product forms. 

  

	 	1.25	 “Manufacturing and Supply Agreement” means an agreement entered into among the Parties in accordance with Clause 2.2 that pertains to the 

  

 4 

	 	 
manufacture of Licensed Product by BAXTER ONCOLOGY for THRESHOLD. 

  

	 	1.26	“Manufacturing Know How” means all information in BAXTER’s or BAXTER ONCOLOGY’s or their Sub-Contractor’s possession or under their control at the
date of this Agreement or which comes into their possession or under their control during the term hereof relating to the Manufacture of Licensed Product (including but not limited to the identity of any Sub-Contractor). Provided however, that
information in Sub-Contractor’s possession or under their control is only included in “Manufacturing Know-How” to the extent it is or has to be transferred from Sub-Contractor to BAXTER or BAXTER ONCOLOGY. 

  

	 	1.27	“Major Market Countries” means [***] 

  

	 	1.28	“Manufacturing Patents” means all Patents and Patent applications set forth in Part B of Schedule 1.4. 

  

	 	1.29	“NDA” NDA means a New Drug Application and all supplements filed pursuant to the requirements of the FDA, including all documents, data and other information
concerning Licensed Product which are necessary for, or included in, FDA approval to market Licensed Product in the United States of America as more fully defined in 21. C.F.R. §314.5 et seq or such similar application and supplements filed
with or submitted to a similar Regulatory Agency in another country. 

  

	 	1.30	“Net Sales” means the amount invoiced by THRESHOLD, its Affiliates or Sub-Licensees to Customers for sales of Licensed Product in the Territory less deductions for
the following: (i) cash, trade, quantity and volume credits, allowances, discounts and bad debt (any deduction for bad debt shall be not more than one percent (1%) of sales of Licensed Product, and any allowances for amounts written off as bad debt
shall be included in Net Sales if later paid); (ii) rebates such as price reductions, rebates to social and welfare systems, charge-backs, government mandated rebates and similar rebates; (iii) excise, sales, use, value added, and all other similar
taxes and tariffs and all other similar import/export duties; (iv) invoiced outbound freight and other transportation charges and shipping insurance if any; and (v) allowances or credits for rejections, withdrawals, recalls, and returns. For the
avoidance of doubt, the computation of Net Sales shall not include amounts received by THRESHOLD, its Affiliates or Sub-Licensees for the sale of Licensed Product among THRESHOLD, its Affiliates and Sub-Licensees. 

  

	 	1.31	“New Indication” means any therapeutic indication within the Field, other than the Indication. 

  

	 	1.32	“Parties” means BAXTER, BAXTER ONCOLOGY and THRESHOLD. 

  

	 	1.33	 “Patents” means a patent or patent application and including any and all divisions, continuations, continuations in part, extensions,
substitutions, renewals, registrations, revalidations, re-issues thereof or additions 

  

 5 

	 	 
thereto and including supplementary certificates of protection or similar of or to any patent. 

  

	 	1.34	“Phase I” means, with respect to the United States, the first phase of human clinical trials using a limited number of human subjects to gain evidence of the safety
and tolerability of a product or compound and information regarding pharmacokinetics and potentially pharmacological activity for such product or compound, which human clinical trials are completed prior to the initiation of Phase II, as described
in 21 C.F.R. § 312.21(a), as it may be amended, or, with respect to any other country or jurisdiction, its equivalent in such other country or jurisdiction. 

  

	 	1.35	“Phase II” means, with respect to the United States, the second phase of human clinical trials of a product or compound in human subjects to gain evidence of the
efficacy in one or more indications and expanded evidence of the safety of a product or compound, as well as an indication of the dosage regimen required, as described in 21 C.F.R.§ 312.21(b), as may be amended, or, with respect to any other
country or jurisdiction, its equivalent in such other country or jurisdiction. 

  

	 	1.36	“Phase III” means, with respect to the United States, the third phase of human clinical trials of a product or compound which are large-scale, randomized trials to
gain evidence of the efficacy and safety in a number of human subjects sufficient to support Product Approval for a product or compound with the FDA, as described in 21 C.F.R. § 312.21(c), as it may be amended, or, with respect to any other
country or jurisdiction, its equivalent in such other country or jurisdiction. 

  

	 	1.37	“Product Approval” means the grant of all necessary governmental and regulatory approvals, by the FDA, the EMEA or by any other involved Regulatory Agency to sell
Licensed Product in the Territory. 

  

	 	1.38	“Quarter” means a three (3) month period ending, on the last day of March, June, September or December in any year. 

  

	 	1.39	“Regulatory Agency” means, with respect to any particular country, the governmental authority, body, commission, agency or other instrumentality of such country (or
the EMEA with respect to the EU), with the primary responsibility for the evaluation or approval of pharmaceutical products before a pharmaceutical product can be tested, marketed, promoted, distributed or sold in such country, including such
governmental bodies that have jurisdiction over the pricing and reimbursement of such pharmaceutical product. The term Regulatory Agency includes but is not limited to the FDA. 

  

	 	1.40	 “Regulatory Documents” means, without limitation, all (i) documents, information, data, and reports, regardless of form, filed with, or submitted
to, a Regulatory Agency, (ii) all correspondence to or from a Regulatory Agency, (iii) minutes of all meetings, whether in person or by means of videoconference or teleconference, with a Regulatory Agency or its 

  

 6 

	 	 
representatives, and (iv) all requests, demands, deficiencies, suggestions, reports or other communications by a Regulatory Agency relating to the
development, testing, manufacture, safety, efficacy, or approval of Licensed Product. 

  

	 	1.41	“Royalties” means the amounts due to BAXTER ONCOLOGY in respect of sales of Licensed Products as described in Clause 3.4 herein. 

  

	 	1.42	“Sub-Contractor” means any person, firm or company contracted by BAXTER ONCOLOGY to Manufacture Licensed Product for supply to THRESHOLD. 

 

	 	1.43	“Sub-Licensee” means any person, firm or company licensed by THRESHOLD under a Valid Claim to practice the Licensed Patents. 

  

	 	1.44	“Territory” means all countries of the world. 

  

	 	1.45	“Valid Claim” means a claim in any patent application which has been pending for less than three (3) years from original application or of an issued and unexpired
Patent included in Licensed Patents which has not been disallowed or held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for
appeal, and which has not been admitted to be invalid or unenforceable through re-issue or disclaimer or otherwise. 

  

	 	1.46	“Year” means each consecutive calendar year during the term hereof starting from the calendar year that commences after the first Commercial Delivery.

  

	2.	Grant of Licenses 

  

	 	2.1	BAXTER ONCOLOGY and BAXTER hereby grant to THRESHOLD with effect from the Effective Date, subject to the terms and conditions of this Agreement, an exclusive license and/or
sublicense, with the right to sublicense, under and using the Licensed Patents and Licensed Know-How (for itself or on its behalf) to develop, make, have made, use, supply, offer for sale, sell, import, export and otherwise distribute Licensed
Product in the Territory for use in the Field. 

  

	 	2.2	 Notwithstanding the foregoing to the contrary, THRESHOLD shall be entitled to exercise its Clause 2.1 rights in respect of the manufacture of Licensed Products
containing Glufosfamide only as follows. BAXTER’S and BAXTER ONCOLOGY’s existing supply of Glufosfamide shall be used for the Animal Studies and for any Clinical Trials sponsored by THRESHOLD. THRESHOLD, BAXTER, and BAXTER ONCOLOGY further
agree to negotiate diligently and in good faith, from the Effective Date until the date THRESHOLD is required to notify BAXTER ONCOLOGY whether it will proceed with the development of Licensed Product pursuant to Clause 3.2.1, regarding the terms of
a Manufacturing 

  

 7 

	 	 
and Supply Agreement under which BAXTER or BAXTER ONCOLOGY shall be THRESHOLD’s principal supplier of Glufosfamide for commercial use; provided,
however, that: (i) during the term of the Manufacturing and Supply Agreement THRESHOLD shall be free to establish and receive a supply of Licensed Products from a second source, whether that second source be THRESHOLD or a third party; (ii)
THRESHOLD shall have the right, without limitation, in the event of a material breach by BAXTER ONCOLOGY under the Manufacturing and Supply Agreement to manufacture Glufosfamide itself or to contract a Third Party to manufacture Glufosfamide for
THRESHOLD, and (iii) THRESHOLD shall have the right, without limitation, following expiration or termination of, or failure of the Parties to enter into, the Manufacturing and Supply Agreement to manufacture Glufosfamide itself or to contract a
Third Party to manufacture Glufosfamide for THRESHOLD. 

  

	 	2.3	THRESHOLD shall have all right and title to all intellectual property rights, including, but not limited to, patent protection in respect of any Improvements and/or new Licensed
Product. Each Party shall promptly disclose in writing to the other Parties all Improvements and new Licensed Product. 

  

	3.	License Fees, Development Milestone Payments and Royalty Payments 

  

	 	3.1	Upfront Payment 

  
 THRESHOLD shall pay to BAXTER ONCOLOGY the non-refundable sum of [***] dollars (US$[***]), within fifteen (15) days following the final signature of this
Agreement. 
  

	 	3.2	Development Milestone Payments 

  
 THRESHOLD shall make the following one time payments to BAXTER ONCOLOGY: 
  

	 	3.2.1 	Within [***] days following the receipt of complete final reports for the Animal Studies, THRESHOLD shall notify BAXTER ONCOLOGY whether it will proceed with the development of
Licensed Product. Such notice will be given on or before December 31, 2003; provided that THRESHOLD has had no less than [***] days to review the complete final report. The deadline for such notice shall be extended to the extent necessary to give
THRESHOLD [***] days to make its decision. In the event THRESHOLD decides to proceed with development of a Licensed Product, it shall pay BAXTER ONCOLOGY the sum of [***] United States dollars (US$[***]) contemporaneously with such notice, and the
data and results of the Animal Studies shall be deemed to be Development Data belonging to THRESHOLD. For the avoidance of doubt such decision triggering the Milestone Payment is the precondition to initiate a Clinical Trial.

  

 8 

	 	3.2.2 	Within [***] days following the Initiation of a Phase III Clinical Trial for the Indication, a sum of [***] United States dollars (US$[***]). 

  

	 	3.2.3 	Within [***] days of the filing of an application by THRESHOLD to the FDA for Product Approval for use of Licensed Product for the Indication, a sum of [***] United States dollars
(US$[***]). 

  

	 	3.2.4 	Within [***] days of the grant by the FDA of Product Approval for use of Licensed Product for the Indication the sum of [***] United States dollars (US$[***]).

  

	 	3.2.5 	Within [***] days of the grant by the EMEA of Product Approval in the European Union for use of Licensed Product for the Indication the sum of [***] United States dollars
(US$[***]). 

  

	 	3.3	Performance Milestone Payments 

  
 THRESHOLD shall pay to BAXTER ONCOLOGY the following one time amounts: 
  

	 	3.3.1 	At the end of the first calendar quarter following the Year during which the US annual Net Sales exceed US $[***], the sum of [***] United States dollars (US$[***]).

  

	 	3.3.2 	At the end of the first calendar quarter following the Year during which European annual Net Sales exceed US $[***], the sum of [***] United States dollars (US$[***]).

  

	 	3.3.3 	At the end of the first calendar quarter following the Year during which the worldwide annual Net Sales exceed US$[***], the sum of [***] United States dollars (US$[***]); provided
that the sums due to be paid to BAXTER ONCOLOGY pursuant to Clauses 3.3.1 and 3.3.2 have previously become due. 

  

	 	3.4	Royalty Payments 

  

	 	3.4.1 	Subject to the terms and conditions herein, THRESHOLD shall pay to BAXTER ONCOLOGY Royalties as follows: 

  

	 	(a)	An amount equal to [***] of Net Sales of Licensed Product in those countries where, and only for as long as, compound per se patent protection exists for such Licensed Product; and

  

	 	(b)	An amount equal to [***] of Net Sales of Licensed Product in those countries where, and only for as long as, use patent protection covers the use authorized by the applicable
Regulatory Agency for such Licensed Product, but no compound per se patent protection exists in such jurisdictions; and 

  

	 	(c)	An amount equal to [***] of Net Sales of Licensed Product in those countries where no patent protection exists. 

  

 9 

	 	3.4.2 	The Royalties shall be payable on a country by country basis in respect of Net Sales of each Licensed Product made during the longer of: 

  

	 	(a)	the period while there exists a Valid Claim of a Licensed Patent; or 

  

	 	(b)	[***] years from the date of first Commercial Delivery of said Licensed Product in the Territory. 

  

	 	3.5	THRESHOLD shall not be required to pay multiple Royalties hereunder to BAXTER ONCOLOGY due to any Licensed Product being covered by more than one Valid Claim that is included in the
Licensed Patents. Royalties shall be paid at the highest applicable rate set forth in Clause 3.4.1. 

  

	 	3.6	At the end of the period for which any Royalties are due in a given country of the Territory pursuant to this Agreement, THRESHOLD shall have a fully paid, exclusive, royalty free
license, with the right to sublicense, under the Licensed Patents and the Licensed Know How in such country of the Territory. 

  

	 	3.7	Royalties shall be payable within [***] days of the end of each Quarter in respect of sales of Licensed Product made during such Quarter by THRESHOLD and its Sublicensees; provided,
however, that if THRESHOLD has sublicensed its rights under this Agreement but does not have a royalty report from any Sublicensee sufficiently in advance of the due date for Royalty payments for a Quarter, then THRESHOLD shall (i) provide a
good-faith estimate of the Royalties owed on such Sublicensee’s sales for such Quarter, but in any event such estimate shall at least equal the Royalties paid during the preceding Quarter; (ii) pay such estimate; and (iii) make a payment or
take a credit, as appropriate, in subsequent Royalty payments to the extent such estimated Royalties owed differ from actual Royalties owed for such Sublicensee’s sales in such Quarter. Each payment shall be accompanied by a written royalty
statement, certified as accurate by THRESHOLD’s chief financial officer or chief executive officer, setting forth in reasonable detail the amount of Licensed Products sold and the basis of calculation of the Royalties paid during the Quarter to
which the payment pertains. 

  

	 	3.8	 In the event that (i) Licensed Product is deemed by a court of competent jurisdiction to infringe a valid claim of a patent owned or controlled by a third party in
any given country of the Territory, or (ii) THRESHOLD, its Affiliates or its Sub-Licensees determine, at their reasonable discretion, that it is necessary to pay royalties or other fees to any third party to obtain a license to practice any third
party’s rights in order to market or develop a Licensed Product in any given country, then in such event, THRESHOLD and its Affiliates may deduct such royalties due to such third parties (or such amounts expended in settlement of such claim, or
for securing such rights) from the Royalties otherwise due to BAXTER 

  

 10 

	 	 
ONCOLOGY with respect to Net Sales of such Licensed Product in such country. However, the reduction in the royalty rate shall in no case exceed [***].

  

	 	3.9	Should a compulsory license be granted to a third party under the applicable laws of any country under the Licensed Patents or Licensed Know-How licensed hereunder to THRESHOLD, the
Royalty rate payable hereunder for sales of Licensed Products in such country shall be adjusted to match any lower royalty rate granted to such third party for such country, with respect to the sales of such Licensed Products, and during such
periods, for which such third parties sell under the compulsory license articles that compete with the Licensed Products then marketed and sold by THRESHOLD, its Affiliates or Sub-Licensees in that country. In the event that this Clause 3.9 should
come to apply to the adjustment of the royalty rate in any given country, THRESHOLD shall be entitled to the benefit of such reduction. 

  

	 	3.10	The Royalty payable on combination products which include another therapeutic compound in addition to Licensed Product, shall be the applicable Royalty rate set forth in Clause
3.4.1 above based on a pro rata portion of Net Sales of combination products in accordance with the following formula: 

  
 X = A/B, where 
  
 X = the pro rata portion of Net Sales attributable to Licensed Patents and Licensed Know-How licensed hereunder (expressed as a percentage), and

  
 A = the fair market value of the component in the combination
product utilizing the licenses granted hereunder, and 
  
 B = A
plus the fair market value of all other components in the combination product. 
  
 The fair market values described above shall be determined by BAXTER ONCOLOGY and THRESHOLD in good faith. In the absence of agreement as to the fair market value of all of the components contained in a combination
product, the fair market value of each component shall be determined by arbitration in accordance with the provisions hereof. 
  

	 	3.11	 Any amount payable to BAXTER ONCOLOGY in respect of income in a currency other than that of the United States shall be converted into its equivalent in United
States currency at the average selling rate for the relevant foreign currency during the Quarter in which such income has been received by THRESHOLD with such rate to be calculated by averaging the rates as published by The Wall Street
Journal, New York edition, or such other financial newspaper or reporting system agreed upon by THRESHOLD and BAXTER ONCOLOGY, in effect at the close of 

  

 11 

	 	 
business on the business days occurring in the Quarter. If there exist currency translation restrictions, embargoes, or other currency restrictions that
would prevent THRESHOLD, its Affiliates, or Sub-Licensees from converting local currency into United States dollars and remitting the same to BAXTER ONCOLOGY, THRESHOLD, its Affiliates and Sub-Licensees shall be entitled to pay BAXTER ONCOLOGY in
the local currency in the country where such restrictions exist. 

  

	 	3.12	THRESHOLD shall provide an annual report to BAXTER ONCOLOGY, that indicates: (i) amounts of Licensed Products sold during the relevant period; (ii) allowable deductions and (iii)
payments due pursuant to this Agreement. THRESHOLD shall keep and maintain complete and accurate records of sales of Licensed Products. Such records shall be open upon request of BAXTER ONCOLOGY for a special inspection upon not less than seven (7)
days advance written notice not more than once each year, at any reasonable time within two (2) years after the royalty period to which such records relate, by an accounting firm selected by BAXTER ONCOLOGY and reasonably acceptable to THRESHOLD.
THRESHOLD shall permit the representative of such accounting firm to have access during ordinary business hours to such records as may be necessary, to determine the accuracy of Net Sales and any report and/or payment made under this Agreement. Such
representative shall not disclose to BAXTER ONCOLOGY any information other than the quantity, the calculation and Net Sales of Licensed Products sold and shall otherwise maintain such information in confidence. Said findings shall be maintained in
confidence by BAXTER ONCOLOGY. Findings on the accuracy or supposed inaccuracy of such payment shall be disclosed to BAXTER ONCOLOGY by such representative who shall, at the time of reporting his conclusions to BAXTER ONCOLOGY, supply THRESHOLD with
a copy of such findings. If the audit shall determine an underpayment of more than five percent (5%) between royalty reported and that actually due, then the reasonable expense of the audit shall be borne by THRESHOLD and otherwise by BAXTER
ONCOLOGY. 

  

	 	3.13	THRESHOLD shall withhold and pay to the appropriate authorities in respect of any amount due to BAXTER ONCOLOGY hereunder, any and all withholding taxes, duties, fees and other
charges imposed by any taxing authority. In such event, THRESHOLD shall provide BAXTER ONCOLOGY with such evidence of withholding and payment as may be provided by or to taxing authorities. 

  

	 	3.14	Payments due to BAXTER ONCOLOGY pursuant to this Clause 3 not made within 30 (thirty) days after they are due shall bear an interest charge from the due date at the prime rate as
determined by CitiBank, N.A. on the due date, plus 3% (three percent). 

  

 12 

	4.	DSC; Development Plan; CSC 

  

	 	4.1	BAXTER ONCOLOGY and THRESHOLD shall establish the DSC and the CSC which shall exist to facilitate active communication between them during the development and commercialization of
the Licensed Product, it being further agreed and understood that THRESHOLD shall be responsible for and in control of the research and development and commercialization activities of Licensed Product in the Territory. 

  

	 	4.2	As soon as practicable following the date hereof, BAXTER ONCOLOGY and THRESHOLD shall form the DSC which shall consist of [***] representatives from THRESHOLD and [***]
representatives from BAXTER ONCOLOGY. 

  

	 	4.3	THRESHOLD shall prepare and submit a copy of the Development Plan to BAXTER ONCOLOGY’s representatives on the DSC within ninety (90) days of the Execution of this Agreement.
THRESHOLD shall update and/or modify the Development Plan, as well as the budget thereof, on an annual basis. 

  

	 	4.4	The DSC shall meet to discuss the progress of the Development Plan, the attainment of the objectives of each phase of the development and to share any information related to the
development, and commercialization until the formation of the CSC, of the Licensed Product. 

  

	 	4.5	The DSC shall meet at least twice annually and each such meeting shall be held alternately at each of the party’s offices. The DSC shall meet on such other occasions as may be
reasonably requested by either party throughout each stage of the development of the Licensed Product. THRESHOLD and BAXTER ONCOLOGY shall pay their own costs in attending such meetings and may agree to conduct any such meeting by means of
videoconference or teleconference. 

  

	 	4.6	Upon filing of an NDA for the Licensed Product, BAXTER ONCOLOGY and THRESHOLD shall form the CSC which shall consist of [***] representatives from THRESHOLD and [***]
representatives from BAXTER ONCOLOGY. 

  

	 	4.7	The CSC shall meet to discuss the worldwide marketing of Licensed Product, the launch of the Licensed Product in the Territory and the supply forecast of Licensed Product
requirements for sale in the Territory. 

  

	 	4.8	The CSC shall meet on an annual basis. THRESHOLD and BAXTER ONCOLOGY shall pay their own costs in attending such meetings. 

  

	 	4.9	 The activities of the DSC and CSC may be consolidated into one Steering Committee, at any time, upon the mutual agreement of THRESHOLD and BAXTER ONCOLOGY. The DSC
shall cease to exist following approval by the FDA of Licensed Product for marketing and sale; provided, however, the DSC shall continue to function thereafter until any mandatory 

  

 13 

	 	 
post-marketing clinical studies, if any, have been completed and the results thereof analyzed and submitted to the FDA. 

  

	 	4.10	BAXTER ONCOLOGY and THRESHOLD shall establish a written agenda not less than seven (7) days in advance of each meeting of the DSC and the CSC. The hosting Party shall be responsible
for preparing minutes of each meeting of the DSC and the CSC, which shall not become official until submitted and approved by the DSC or CSC, as the case may be. Each of BAXTER ONCOLOGY and THRESHOLD shall be entitled to bring such of its employees
and consultants to meetings of the DSC and the CSC, in addition to its regular members, as it deems appropriate in light of the matters to be discussed. 

  

	5.	THRESHOLD’s Responsibilities 

  

	 	5.1	THRESHOLD shall use its reasonable efforts to undertake the development of the Licensed Product in accordance with the Development Plan and shall diligently perform the work set
forth in the Development Plan using reasonable skill and care and in a manner consistent with accepted practices in the pharmaceutical industry. 

  

	 	5.2	THRESHOLD shall pay the costs of preparing and performing activities related to the Development Plan which are or may be reasonably necessary to develop, apply for and obtain
Product Approvals for Licensed Product in the Field in the Territory, subject to and without derogating from BAXTER ONCOLOGY’s obligations under Section 6 hereinbelow. 

  

	 	5.3	Within [***] of the Execution of the Agreement, THRESHOLD shall Initiate in a country in the Territory a Phase III Clinical Trial of Licensed Product for the Indication, or for
another tumor disease indication, subject to the following conditions: 

  

	 	5.3.1 	THRESHOLD’s receipt from BAXTER ONCOLOGY of the complete chemistry and manufacturing (CMC) file sufficient for regulatory purposes to be incorporated into the IND and NDA
applications to be filed with the FDA for Product Approval or access to the Drug Master Files for Licensed Product prepared by BAXTER ONCOLOGY and/or its Sub-Contractors and on file with the FDA; and 

  

	 	5.3.2 	effectiveness of the IND application with the FDA for use of Licensed Product for the Indication or alternative indication. 

  

	 	5.4	THRESHOLD shall be responsible for preparing and applying for applications for Product Approvals in the Territory and shall be responsible for the maintenance of all Product
Approvals in the Territory and for preparing and applying for applications for, and monitoring all other regulatory approvals relating to Licensed Product. THRESHOLD shall be responsible for deciding in which countries in the Territory such
activities shall be conducted. 

  

 14 

	 	5.5	All Product Approvals applied for pursuant to Clause 5.4 shall be applied for in the name of THRESHOLD or its Affiliates, contractors or Sub-Licensees. 

  

	 	5.6	THRESHOLD shall use reasonable efforts consistent with its normal business practices to promote and market the Licensed Product in the Major Market Countries in the Territory.
Subject to restrictions imposed by applicable law or regulation, if any, upon request of BAXTER ONCOLOGY, THRESHOLD shall mark Licensed Product or promotional materials/accompanying literature to indicate that the Licensed Patents are licensed from
BAXTER. 

  

	 	5.7	THRESHOLD, its Affiliates or Sub-Licensees, as the case may be, shall be responsible for the preparation of scientific literature and promotional material relating to Licensed
Product and its activities in the Territory in accordance with its normal business practices and quality standards and in accordance with local legal requirements. A draft copy of any such scientific and/or promotional material shall be given to
BAXTER ONCOLOGY no less than ten (10) days prior to the distribution thereof for BAXTER ONCOLOGY’s approval, which will not be unreasonably, withheld or delayed, unless THRESHOLD is required by law to release such information, in which case it
will be exempt from giving BAXTER ONCOLOGY a copy in advance. THRESHOLD will provide BAXTER ONCOLOGY with three (3) final copies of any such materials. 

  

	6.	BAXTER ONCOLOGY’s Responsibilities 

  

	 	6.1	Within thirty (30) days after the Effective Date, BAXTER ONCOLOGY shall provide THRESHOLD with all documentary form or other form of licensed Know How, research and development,
clinical and manufacturing data, and Regulatory Documents related to the Licensed Product including, but not limited to, all data resulting from Phase I and Phase II clinical trials of Licensed Product, for the Indication or alternative indications,
conducted by or on behalf of BAXTER or BAXTER ONCOLOGY. As further information and/or data related to Licensed Product comes into possession of BAXTER ONCOLOGY it shall forthwith disclose the same to THRESHOLD. 

  
 Following execution of this Agreement, BAXTER ONCOLOGY shall provide
THRESHOLD access for copying to all written BAXTER ONCOLOGY Know-How, evaluations, memorandum and documentation in its possession relevant to the Licensed Product. BAXTER ONCOLOGY shall use reasonable efforts to provide its personnel time for
preparation and transfer of technology (including, but not limited to, manufacturing technology specific to Licensed Product) and BAXTER ONCOLOGY Know-How in BAXTER ONCOLOGY’s possession, relating to Licensed Product that is necessary for the
development and manufacture of Licensed Product by THRESHOLD or a THRESHOLD Sub-licensee or Subcontractor. Such information shall be specific to Licensed Product and 

  

 15 

 
BAXTER ONCOLOGY shall be under no obligation to transfer general knowledge of development, manufacture, registration or commercialization of this type of
product. 
  
 BAXTER ONCOLOGY’s obligations in accordance
with Clause 6.1 shall include, but not be limited to, making employees available for telephone consultations with respect to the transfer of written information and associated documentation relating to pre-clinical and clinical activities, IND, NDA
and Manufacture matters. 
  

	 	6.2	BAXTER ONCOLOGY will conduct animal studies to determine dose titration of the combination of Glufosfamide and gemcitabine and one xenograft study with human pancreatic cancer
tissue using this combination with changing treatment sequences (Glufosfamide and gemcitabine simultaneously, Glufosfamide then gemcitabine, or gemcitabine first). BAXTER may conduct additional animal studies with other xenograft types as well as a
combination study of Glufosfamide with 5-FU. BAXTER will complete such studies and report the results therefrom to THRESHOLD no later than 15 November 2003. During the conduct of the foregoing studies, BAXTER shall keep THRESHOLD informed of the
status of such studies and the results thereof on an ongoing basis. 

  

	 	6.3	BAXTER and BAXTER ONCOLOGY shall be responsible for the filing, prosecution and maintenance, at their expense, of all Licensed Patents. 

  

	7.	Patents 

  

	 	7.1	THRESHOLD may, at its own cost and expense, prepare, file and prosecute new patent applications for the Licensed Product and uses or methods thereof, as it sees fit. Notwithstanding
the foregoing, should BAXTER and BAXTER ONCOLOGY decide that they are no longer interested in maintaining or prosecuting a Licensed Patent, BAXTER and BAXTER ONCOLOGY shall assign free of charge such Licensed Patent to THRESHOLD. Upon assignment,
such Licensed Patent shall no longer be included in Licensed Patents and THRESHOLD may thereafter maintain and prosecute such Licensed Patent at its expense to the extent that it desires to do so. 

  

	 	7.2	Infringement of Third Party Rights 

  

	 	7.2.1 	If the manufacture, use or sale of the Licensed Products using the Licensed Patents and Licensed Know How may constitute an infringement of the rights of a third party in the
Territory, each Party shall, as soon as it becomes aware of such possible infringement, notify the other Parties thereof in writing. 

  

	 	7.2.2 	 The Parties shall after receipt of such notice referred to in Clause 7.2.1 above, discuss the situation and, to the extent necessary, attempt to agree on a course
of action in order to 

  

 16 

	 	 
permit THRESHOLD to practice the licenses granted under this Agreement. Such course of action may include (1) obtaining an appropriate license from such
third party or (2) contesting any claim or proceedings brought by the third party. 

  

	 	7.2.3 	If within [***] the Parties fail to agree upon a course of action, BAXTER ONCOLOGY or BAXTER may decide upon the course of action at its expense in the interest of further
development and/or commercialization of Licensed Product, including the negotiation of an appropriate license from such third party, in which event BAXTER ONCOLOGY or BAXTER shall keep THRESHOLD fully informed as to progress of such negotiations or
the defense of any suit or claim and shall seek and consider the opinion of THRESHOLD regarding all such matters. 

  

	 	7.2.4 	BAXTER ONCOLOGY or BAXTER shall make no settlement of any claims of a third party without the written consent of THRESHOLD, which consent shall not be unreasonably withheld or
delayed. 

  

	 	7.2.5 	In the event of a final judgment or settlement in any suit brought by a third party or settlement of a claim of a third party against THRESHOLD requiring royalty payments for any
other damages to be paid by THRESHOLD, such royalty payments or damages paid by THRESHOLD shall be deducted from Royalties required to be paid to BAXTER. 

  

	 	7.3	Infringement of Licensed Patents and Licensed Know-How 

  

	 	7.3.1 	In the event that either party becomes aware of any infringement or suspected infringement of the Licensed Patents or misuse of Licensed Know-How or Development Data, then it shall
promptly give notice to the other in writing and: 

  

	 	7.3.2 	BAXTER ONCOLOGY and THRESHOLD shall consult within [***] days after one Party gives notice to the other Party of any infringement or suspected infringement to decide what steps
shall be taken to prevent or terminate such infringement or misuse and the proportions in which they shall share the cost thereof and any damages and other sums which may be awarded in their favour or against them. 

  

	 	7.3.3 	 When failing agreement between BAXTER ONCOLOGY and THRESHOLD by the end of the period set forth in Clause 7.3.2, unless such period has been extended by mutual
written agreement of BAXTER ONCOLOGY and THRESHOLD, then THRESHOLD may at its own discretion take such action that it may consider necessary and appropriate to terminate or prevent such infringement or misuse and THRESHOLD shall be entitled, subject
to all damages and other sums which may be awarded 

  

 17 

	 	 
or recovered against it as a result thereof, to all damages and other sums recovered by it and shall indemnify BAXTER and BAXTER ONCOLOGY against all and any
costs, expenses, losses, damages or compensation awarded against or incurred by BAXTER and BAXTER ONCOLOGY as a result of such action being taken. 

  

	 	7.3.4 	THRESHOLD shall not make any settlement or compromise without the consent of BAXTER ONCOLOGY, which consent shall not be unreasonably withheld or delayed. If any such settlement
includes the grant of a license on terms more favorable than those provided to THRESHOLD hereunder, the terms of THRESHOLD’s license shall be automatically modified to embody such more favorable terms for the benefit of THRESHOLD.

  

	 	7.3.5 	If THRESHOLD determines not to institute action to restrain infringement or suspected infringement within [***] after failing agreement by the Parties and notice from BAXTER
ONCOLOGY, BAXTER ONCOLOGY shall have the right to institute action at its own expense and on the same terms and conditions as set forth in Clauses 7.3.3 and 7.3.4, with BAXTER ONCOLOGY assuming the rights and duties of THRESHOLD, and THRESHOLD
assuming the rights and duties of BAXTER ONCOLOGY, under Clauses 7.3.3 and 7.3.4. 

  

	 	7.3.6 	Each Party shall provide all reasonable assistance to the other (including but not limited to the use of its name in or being joined as a party to the proceedings) at the request of
the other, in connection with any action to be taken by the other party pursuant to the provisions of this Clause 7. 

  

	 	7.4	Patent Protection Extensions 

  
 Each Party agrees to cooperate with the other Parties to secure, where possible, appropriate patent protection extensions and shall inform the other
Parties in writing within twenty (20) days after: 
  

	 	7.4.1 	the initiation of each Phase of clinical trials of a Licensed Product; 

  

	 	7.4.2 	the date of filing of an NDA for a Licensed Product in the United States or its foreign equivalent in a Major Market Country; 

  

	 	7.4.3 	the date of obtaining approval of an NDA for a Licensed Product in the United States or its foreign equivalent in a Major Market Country; 

  

	 	7.4.4 	the date of the first sale of a Licensed Product in each country of the Territory; and 

  

 18 

	 	7.4.5 	any events that might be material in connection with a possible extension of the patent protection term. 

  

	 	7.4.6 	In this regard, the Parties shall cooperate in filing for and obtaining patent protection extensions and supplementary or complementary protection certificates in any country of the
Territory, if and when available, including supplementary protection certificates in European Union (“EU”) countries and European Free Trade Area (“EFTA”) countries, patent extensions in the United States, and administrative
protection, such as so-called pipeline protection in certain countries of the Territory. Such cooperation shall include, without limitation, providing any information, data and documents in a timely manner for the purpose of applying for patent
extension and, within one (1) month of receipt, a copy of every marketing authorization for Licensed Product issued by any country providing for patent protection extensions, and in addition, within one (1) month of availability of the document, a
copy of the official journal page from each EU or EFTA country giving the marketing approval number and date of authorization for Licensed Product, and a summary of the characteristics of Licensed Product for that country, for the purpose of
applying for supplementary protection certificates under EEC (European Economic Community) Directive 1768/92, and providing information and signing of documents as required. 

  

	8.	Warranty, Liability and Indemnity 

  

	 	8.1	Warranties 

  
 BAXTER ONCOLOGY and BAXTER warrant that: 
  

	 	8.1.1 	they are free to enter into this Agreement in their own right and that there are no rights exercisable by or obligations owed to any third party which may prevent or restrict them
from entering into this Agreement and that the execution and delivery of this Agreement and performance hereunder by them has been duly authorized by all necessary corporate action; 

  

	 	8.1.2 	the Licensed Patents and the Licensed Know-How comprise all of the intellectual property owned or controlled by BAXTER and BAXTER ONCOLOGY related to Licensed Products;

  

	 	8.1.3 	BAXTER ONCOLOGY has disclosed or will disclose according to Clause 6 to THRESHOLD all Licensed Know-How under its or its licensor’s control or in its or licensor’s
possession and it has not disclosed to any third party other than under written obligation of confidence and non-use the Licensed Patents or Licensed Know-How or the subject matter thereof; 

  

 19 

	 	8.1.4 	so far as they are aware having made due and proper enquiry and subject to the filing of a certificate disclaiming Glufosfamide from the scope of the claims of US Patent No.
6489302, the Licensed Patents are or will be when granted valid and that the manufacture use, supply, sale, import or export of Licensed Product for the Field or for any other indication will not infringe the rights of any third party in the
Territory, and in addition to any other right or remedy that THRESHOLD may have under this Agreement or law, THRESHOLD shall have the right to terminate this Agreement in the event that a certificate of correction disclaiming Glufosfamide from the
scope of the claims of US Patent No. 6489302 assigned to the Deutsches Krebsforschungszentrum Stiftung des Offentlichen Rechts, 69120 Heidelberg, DE, has not been filed with the US Patent Office by the patent owner on or before November 30, 2003
and, in the event of such termination, BAXTER ONCOLOGY shall pay THRESHOLD the sum of [***] U.S. dollars ($[***]) as a termination fee and as liquidated damages for such termination; the Parties agree to take any steps, if and as far as necessary,
with regard to the above patent family in close cooperation; 

  

	 	8.1.5 	so far as they are aware having made due and proper enquiry, there is no know-how or other information owned or controlled by BAXTER, BAXTER ONCOLOGY, their licensor or their
Sub-Contractors necessary for the development, use, manufacture, supply or sale of Licensed Products other than the Licensed Know How, and that BAXTER is the absolute beneficial and legal owner of the Licensed Patents which comprise all the
intellectual property possessed or controlled by them relating to the Licensed Product, its uses, and manufacture, and BAXTER and BAXTER ONCOLOGY are the beneficial and legal owners of the Licensed Know-How, both the Licensed Patents and the
Licensed Know-How are free and clear of all liens, charges and encumbrances, and they are entitled to grant all of the rights granted or agreed to be granted hereunder; 

  

	 	8.1.6 	they have not granted and will not grant to any person or entity, other than THRESHOLD, any right, license or privilege with respect to the Licensed Patents and Licensed Know How
for use in the Territory; 

  

	 	8.1.7 	BAXTER and BAXTER ONCOLOGY have disclosed to THRESHOLD all information in their possession relating to the Licensed Product and in which the novelty, validity or sufficiency of the
Licensed Patents and any claim made therein has been challenged or disallowed; 

  

	 	8.1.8 	 they know of no information or data which will or may adversely affect or prevent the development, manufacture or use of 

  

 20 

	 	 
Licensed Product in the Field in the Territory or render the use of Licensed Product for use by way of administration to humans unsafe or lacking in
efficacy; and 

  

	 	8.1.9 	none of BAXTER, BAXTER ONCOLOGY or their Affiliates, Sublicensees or Sub-Contractors shall utilize the Licensed Patents or Licensed Know How, or develop Glufosfamide for use in the
Territory. 

  

	 	8.2	Product Liability 

  

	 	8.2.1 	THRESHOLD shall assume all third party liabilities arising from the, use, offer for sale or supply, sale or supply by through or on behalf of THRESHOLD or its Affiliates or
Sub-Licensees of Licensed Products (and related materials) including without limitation all claims based upon product liability laws, except for liabilities and claims arising from the breach of the terms of the Agreement by BAXTER ONCOLOGY or the
negligence of BAXTER ONCOLOGY or its Affiliates for which BAXTER ONCOLOGY and BAXTER shall assume all liabilities. To the extent claims based upon product liability laws arise from instructions or specifications of THRESHOLD for the Manufacture of
Licensed Products that are not based on instructions or specifications provided by BAXTER or BAXTER ONCOLOGY, THRESHOLD shall assume all related liabilities. 

  

	 	8.2.2 	THRESHOLD shall defend, indemnify and hold harmless BAXTER, BAXTER ONCOLOGY, their Sub-Contractor(s), their Affiliates, their directors, officers, employees and consultants and
those of their Affiliates and Sub-Contractor(s) from and against any and all claims, demands, losses, damages and/or expenses (including without limitation reasonable legal fees) arising from or in connection with any use by, sale to third parties
or supply of third parties by THRESHOLD or its Affiliates or Sub-Licensees of Licensed Products in the Territory except to the extent that any such claims, demands, losses, damages and/or expenses result from the negligence of BAXTER, BAXTER
ONCOLOGY or its Affiliates or the breach by BAXTER ONCOLOGY of the terms of this Agreement. To the extent third party claims arise from instructions or specifications of THRESHOLD for the Manufacture of Licensed Products that are not based on
instructions or specifications provided by BAXTER or BAXTER ONCOLOGY, THRESHOLD shall defend, indemnify and hold harmless BAXTER, BAXTER ONCOLOGY, their Sub-Contractor(s), their Affiliates, their directors, officers, employees and consultants and
those of their Affiliates and Sub-Contractor(s) from and against any and all such claims. 

  

 21 

	 	8.2.3 	BAXTER ONCOLOGY and BAXTER shall defend, indemnify and hold harmless THRESHOLD, its Affiliates, its Sub-Licensees, its directors, officers, employees and consultants and those of
its Affiliates and Sub-Licensees from and against any and all claims, demands, losses, damages and/or expenses (including without limitation reasonable legal fees) arising from any use by, sale to or supply by THRESHOLD or its Affiliates or
Sub-Licensees of Licensed Products in the Territory to the extent that any such claims, demands, losses, damages and/or expenses result from the negligence of BAXTER ONCOLOGY or its Affiliates or the breach by BAXTER ONCOLOGY or BAXTER of the terms
of this Agreement. 

  

	 	8.2.4 	Within thirty (30) days of receipt of written request for indemnification, to be provided promptly upon receipt of a claim, the party from whom indemnification is sought shall
advise the other whether it will provide the requested indemnification. The indemnified party shall permit the indemnifying party, at the indemnifying party’s expense, to assume the complete defense of any claims with a full authority to
conduct such defense and to settle or otherwise dispose of the claims as provided below. The indemnified party will fully co-operate in such defense and shall provide reasonable assistance necessary to enable the indemnifying party to defend such
claims. The indemnified party may retain separate co-counsel, at its sole cost and expense and participate in the defense of the claim. The indemnifying party will not, except with the consent of the indemnified party, consent to the entry of any
judgment or enter into any settlement which provides for any relief other than the payment of monetary damage and which does not include as an unconditional term thereof the giving by the claimant or plaintiff to the indemnified party a release from
all liability in respect thereof. The indemnifying party shall not be responsible for or bound by any settlement made by the indemnified party without the prior written consent of the indemnifying party, which consent shall not be unreasonably
withheld or denied. To the extent that any claim for indemnification involves an action wherein counts or claims are alleged which are attributed or attributable to the indemnified party, following settlement or termination of said action, the
Parties agree to apportion their respective indemnification obligations based upon their attributed fault in the event of jury, court or other alternate dispute resolution mechanism or based upon good faith negotiations among the Parties in the
event of a settlement. 

  

	 	8.2.5 	 THRESHOLD and BAXTER ONCOLOGY shall each use its reasonable efforts to obtain and maintain in force at all times during the term hereof third party liability
insurance in respect of 

  

 22 

	 	 
the risks in respect of which it is providing indemnity hereunder with a reputable insurance carrier or by self-insurance. THRESHOLD and BAXTER ONCOLOGY
shall each use its reasonable endeavors to name the other as named insured under its policy of insurance as aforesaid and provide a copy thereof upon request. 

  

	9.	BAXTER ONCOLOGY Improvements 

  

	 	9.1	BAXTER ONCOLOGY and BAXTER shall promptly disclose in writing to THRESHOLD, free of charge all new techniques, formulations, applications or chemical or biological analogs (i.e.
metabolites), or derivatives of Licensed Product developed or acquired by BAXTER ONCOLOGY or BAXTER (“BAXTER ONCOLOGY Improvements”). 

  

	 	9.2	Where THRESHOLD wishes to use a BAXTER ONCOLOGY Improvement for Licensed Products it shall notify BAXTER ONCOLOGY or BAXTER, as the case may be, of its wish within 90 (ninety) days
of being informed thereof and shall have the right to receive an exclusive, royalty-free license to use BAXTER ONCOLOGY Improvements developed or acquired by BAXTER ONCOLOGY in the Territory in respect of Licensed Products in the Field in accordance
with the provisions of this Agreement, together with the right to grant sub-licenses thereunder in accordance with the terms hereof; 

  

	10.	Confidentiality 

  

	 	10.1	BAXTER, BAXTER ONCOLOGY and THRESHOLD undertake to each other to keep, and shall procure that their respective Affiliates, Sub-Licensees, employees, directors, officers, consultants
and contractors (including those of any Affiliate) shall keep, confidential all information marked “confidential” received from each other during or in anticipation of – but after the effective date of the confidentiality agreement
between the parties dated October 4, 2002 – this Agreement however obtained and in whatever form (the “Confidential Information”) provided that Confidential Information shall not include the following: 

  

	 	10.1.1	 information which at the time of disclosure by one party to the other is in the public domain; 

  

	 	10.1.2	 information which after disclosure by one party to the other becomes part of the public domain by publication except by breach of this Agreement; 

  

	 	10.1.3	 information which the receiving party can establish by competent proof was already in its possession at the time of its receipt and was not acquired directly or indirectly
from the other party; or 

  

	 	10.1.4	 information received from third parties who were lawfully entitled to disclose such information. 

  

 23 

	 	10.2	Any Confidential Information received from the other party shall not be disclosed or used for any purpose other than as provided or anticipated under this Agreement.

  

	 	10.3	The confidentiality and non-use obligations contained in this Agreement shall continue for the duration of this Agreement and for a period of ten (10) years after termination or
expiry of this Agreement. 

  

	 	10.4	The provisions of this Clause 10 shall in no event prevent THRESHOLD from disclosing any Licensed Know How to regulatory authorities or other governmental agencies in support of any
application to conduct Clinical Trials or for regulatory approvals or any amendments thereof for Licensed Products in accordance with the provisions of this Agreement, or to prospective investors or to prospective sub-licensees who are bound by an
obligation of confidentiality, or in general whenever required to disclose such information under any applicable law or regulation. 

  

	 	10.4.1	 Where one party intends to make any public release of scientific data or other information relating to Licensed Products it shall give the other party thirty (30) days prior
notice thereof together with the text of any such release. Prior to making any such release, the party intending the release shall modify the context thereof to take account of any reasonable comments made by the other party. Notwithstanding the
foregoing, BAXTER ONCOLOGY shall not make any such release where in the reasonable opinion of THRESHOLD to do so would adversely affect the development of Licensed Product, its commercial value or any intellectual property (including Development
Data relating thereto). 

  

	11.	Termination 

  

	 	11.1	Termination by Either Party 

  
 Either Party may terminate this Agreement forthwith by notice in writing given at any time if the other party is in material breach of any of its
obligations hereunder except in the case of a material breach capable of remedy within sixty (60) days, where the material breach has been remedied within such sixty (60) days of the defaulting party receiving notice specifying the material breach
and requiring its remedy. Notwithstanding the foregoing, Clause 11.2, and not this Clause 11.1, shall govern terminations under the circumstances described therein. 
  
 A material breach of this Agreement is (1) a willful act or omission by the party in breach that would deprive the other
party of a major part of the value of what it had contracted for and for which damages are not an adequate remedy; or (2) the non-payment of money within thirty (30) days of the date upon which it is due and payable hereunder. 
  

 24 

	 	11.2	BAXTER ONCOLOGY shall in addition have the right to terminate this Agreement: 

  

	 	11.2.1	 If THRESHOLD materially breaches its obligation to perform its obligations as set forth in Clause 5 and such breach remains uncured for a period of ninety (90) days after the
delivery of notice of such breach to THRESHOLD; 

  

	 	11.2.2	 THRESHOLD discontinues its development and commercialization activities for a continuous period of twelve (12) months in a manner that is inconsistent with the then current
Development Plan, and such breach remains uncured for a period of ninety (90) days after the delivery of notice of such breach to THRESHOLD; 

  

	 	11.2.3	 Forthwith by notice in writing given at any time if an order is made or a resolution is passed for the winding up or insolvency of THRESHOLD (other than voluntarily for the
purposes of solvent amalgamation or reconstruction) or an order is made for the appointment of an administrator to manage the other party’s affairs, business and property or if a receiver (which expression shall include an administrative
receiver) is appointed of any of THRESHOLD’s assets or undertaking or if circumstances arise which entitle the court or a creditor to appoint a receiver or manager or which entitle the court to make a winding-up order or if a voluntary
arrangement is proposed in respect of THRESHOLD or if THRESHOLD takes or suffers any similar or analogous action in consequence of debt, unless any such action is withdrawn or set aside within 60 (sixty) days. The licenses granted pursuant to this
Agreement shall be deemed to be licenses of “Intellectual Property” for purposes of Section 365(n) of the U.S. Bankruptcy Code. 

  

	 	11.3	THRESHOLD shall have the right to terminate this Agreement, (and the underlying licenses) by notice in writing given at any time upon 60 (sixty) days notice to BAXTER ONCOLOGY with
or without cause. 

  

	12.	Consequences Of Termination 

  

	 	12.1	Upon termination of this Agreement by BAXTER ONCOLOGY or, without cause, by THRESHOLD: 

  

	 	12.1.1	 Licenses Terminated 

  
 Subject to other provisions of this Clause the licenses granted under Clause 2 shall terminate automatically and THRESHOLD shall procure that its
Affiliates and Sub-Licensees shall immediately stop all activities licensed hereunder except that (i) any Sub-licensee of THRESHOLD that is not in default of its obligations under its sub-license shall be entitled to continue its sub-license in full
force and effect subject to the provisions of this Agreement to the benefit of BAXTER and BAXTER ONCOLOGY, and (ii) THRESHOLD, its Affiliates and 

  

 25 

 
Sub-Licensees shall be permitted to offer for sale and sell and supply remaining stocks of Licensed Products in their possession at the date of termination
or delivered thereafter as quickly as reasonably possible and complete deliveries on contracts in force at that date subject to the payment of license fees, milestone payments and royalties under and in accordance with the provisions of Clause 3.

  

	 	12.1.2	 Payment Due 

  
 THRESHOLD shall make all outstanding license fees, milestone and Royalty payments due hereunder to BAXTER ONCOLOGY. 
  

	 	12.1.3	 Continuing Provisions 

  
 The following provisions of this Agreement shall continue in full force and effect following termination: this Clause 12 and Clauses 1, 7.2 (but only for
pre-termination infringement), 7.3 (but only for pre-termination infringement), 8, 10, 14 and 15. Termination of this Agreement for any reason does not relieve the Parties of any obligation accruing prior to the effective date of the termination,
including the obligation to make the payments set forth in Clause 3. 
  

	 	12.1.4	 Return of Know-How 

  
 Subject to the other provisions of this Clause 12, THRESHOLD shall return to BAXTER ONCOLOGY all Licensed Know-How and documents given to THRESHOLD by
BAXTER ONCOLOGY pursuant to this Agreement in its possession or the possession of its Affiliates. 
  

	 	12.1.5	 Use of Development Data 

  
 Subject to the other provisions of this Clause 12, THRESHOLD grants to BAXTER ONCOLOGY the right to use Development Data (where it is free to do so) and
transfer to BAXTER ONCOLOGY or its designee(s) all Product Approvals in its name. 
  

	 	12.1.6	 Third Party Agreements 

  
 BAXTER ONCOLOGY or BAXTER agrees to recognize THRESHOLD’s Sub-Licensees as its direct licensees following a termination of this Agreement by BAXTER
ONCOLOGY provided that (i) such Sub-Licensees are in compliance with the terms of their sublicenses, (ii) BAXTER or BAXTER ONCOLOGY would not be required to undertake obligations in excess of those undertaken pursuant to this Agreement, and (iii)
such Sub-Licensees agree with having BAXTER or BAXTER ONCOLOGY as direct Licensor. Notwithstanding the foregoing to the contrary and as an alternative thereto, BAXTER 

  

 26 

 
ONCOLOGY shall use reasonable efforts consistent with the terms of this Agreement as reasonable under the circumstances to assist THRESHOLD, at
THRESHOLD’s request, in discharging THRESHOLD ́s obligations in full under all agreements between THRESHOLD and its Sub-Licensees or other third parties until each can be terminated by THRESHOLD in accordance with its terms and without
liability to THRESHOLD. 
  

	 	12.2	Rights and Remedies for Breach 

  
 Any rights or remedies of either party arising from any breach shall continue to be enforceable unless previously waived in writing, including without
limitation either Party’s rights to recover damages for breach of this Agreement by the other Party. 
  

	13.	Force Majeure 

  

	 	13.1	Neither party shall terminate this Agreement or be liable to the other under this Agreement for loss or damages attributable to any act of God, earthquake, flood, fire, explosion,
strike, lockout, labor dispute, casualty or accident, war, revolution, civil commotion, terrorism, act of public enemies, blockage or embargo, injunction, law, order, proclamation, regulation, ordinance, demand or requirement of any government or
subdivision, authority (including, without limitation, regulatory authorities) or representatives of any such government, or any other cause beyond the reasonable control of such party, if the party affected shall give prompt notice of any such
cause to the other party. The party giving such notice shall thereupon be excused from such of its obligations hereunder for so long as it is so disabled during, but no longer than the existence of such cause. 

  

	 	13.2	If such cause continues unabated for a period of at least 90 (ninety) days, the Parties will meet to discuss what, if any, modifications should be made to this Agreement as a
consequence of such Force Majeure. 

  

	14.	Miscellaneous 

  

	 	14.1	Performance by Affiliates, Sub-Licensees and Sub-Contractors 

  
 The Parties may perform some or all of their obligations under this Agreement through their Affiliates, Sub-Licensees or Sub-Contractors and third parties
provided that each party shall remain solely responsible for and be guarantor of the performance by its Affiliates, Sub-Licensees or Sub-Contractors and third parties and procure that its Affiliates, Sub-Licensees or Sub-Contractors and such third
parties comply fully with the provision of this Agreement in connection with such performance. 
  

 27 

	 	14.2	Severance 

  
 If any provision of this Agreement is held to be invalid or inapplicable by a court of competent jurisdiction the remaining provisions will continue in
full force and the Parties will make such amendments to this Agreement by the addition or deletion of wording as appropriate to remove the invalid or unenforceable part of such provision but otherwise achieve, to the maximum extent permissible, the
economic, legal and commercial objectives of the original provision. 
  

	 	14.3	Waiver 

  
 Failure or delay by either party in exercising or enforcing any right or remedy under this Agreement in whole or in part shall not be deemed a waiver
thereof or prevent the subsequent exercise of that or any other rights or remedy. 
  

	 	14.4	Interpretation 

  
 The headings in this Agreement are for convenience only and shall not affect its interpretation. References to the singular include the plural and vice
versa. References to persons include companies, partnerships and all other forms of body corporate or unincorporated and references to recitals, clauses and schedules are references to Recitals, Clauses or Schedules to this Agreement. 
  

	 	14.5	Language 

  
 All documents delivered under this Agreement by BAXTER or BAXTER ONCOLOGY to THRESHOLD, if maintained or prepared in other than the English language,
shall be accompanied by English translations thereof. All communications between the parties shall be in English. 
  

	 	14.6	Assignment 

  

	 	14.6.1	 Subject to Clauses 14.6.2, 14.6.3 and 14.6.4 neither BAXTER, BAXTER ONCOLOGY nor THRESHOLD shall assign, transfer, sub-license, sub-contract, mortgage, charge or otherwise
make over to any third party any of its rights or obligations under this Agreement or the Licensed Patents or BAXTER ONCOLOGY Know-How without the prior written consent of the other party, except to an Affiliate or a party acquiring all or
substantially all of the business of the assigning Party to which this Agreement relates or to a party merging with one of the Parties. Prior to any such permitted assignment the Party wishing to effect the transaction shall use reasonable efforts
to procure that the third party concerned covenants directly with the other Party to this Agreement to comply with all the provisions of this Agreement, which shall be binding on it as the successor and assign of such Party.

  

 28 

	 	14.6.2	 THRESHOLD may grant any sub-license or sub-contract of its rights or obligations hereunder without the prior written consent of BAXTER or BAXTER ONCOLOGY and shall notify
BAXTER ONCOLOGY of the grant of any sub-contract or sub-license and provide BAXTER ONCOLOGY with a redacted summary of the terms thereof as soon as reasonably practicable following such grant. Subject to receipt of a confidentiality undertaking
THRESHOLD shall grant to an independent accountant (acceptable to BAXTER ONCOLOGY) a right to inspect such agreements for the purpose of verifying the calculation of sums to be paid by THRESHOLD to BAXTER ONCOLOGY hereunder. The grant of any
sub-license by THRESHOLD shall not relieve THRESHOLD of any of its obligations hereunder and THRESHOLD shall incorporate within the terms of any such agreement rights and obligations consistent with the rights and obligations granted hereunder and
including without limitation those as to confidentiality and THRESHOLD shall procure the performance of any sub-license by its Sub-Licensee. Where royalties are payable by any Sub-Licensee, THRESHOLD shall account for royalties on sales and supply
of Licensed Products by Sub-Licensees of THRESHOLD in the same manner and upon the same terms as set forth herein and procure for BAXTER ONCOLOGY rights and access to facilities for verifying such royalties. Where THRESHOLD grants any sub-license
the term THRESHOLD used in this license shall be deemed to include a reference to Sub-Licensees of THRESHOLD. 

  

	 	14.6.3	 Without derogating from any of THRESHOLD’s rights hereunder, in any event that BAXTER ONCOLOGY sub-contracts the Manufacture of Licensed Product, other than to THRESHOLD,
it shall not be relieved of its obligations hereunder and BAXTER ONCOLOGY shall procure the performance by its Sub-Contractor of any such agreement and any reference to BAXTER ONCOLOGY herein shall with regard to such Manufacture be deemed to
include a reference to such Sub-Contractor. BAXTER ONCOLOGY shall notify THRESHOLD of the appointment of any Sub-Contractor and provide a summary of the terms thereof (other than financial terms) as soon as reasonably practicable following such
appointment. 

  

	 	14.7	No Agency 

  
 Except as expressly stated in this Agreement, neither party shall act or describe itself as the agent of the other nor shall it make, or represent that it
has authority to make, any commitments on the other’s behalf. 
  

 29 

	 	14.8	Notices 

  

	 	14.8.1	 Any notice or other document given under this Agreement shall be in writing in the English language and shall be given by hand or sent by prepaid airmail, by facsimile
transmission or e-mail to the address of the receiving party as set out in Clauses 14.8.3 and 14.8.4 below unless a different address or facsimile number has been notified to the other in writing for this purpose. 

  

	 	14.8.2	 Each such notice or document shall: 

  

	 	(a)	if sent by hand, be deemed to have been given when delivered at the relevant address; 

  

	 	(b)	if sent by prepaid airmail, be deemed to have been given 7 (seven) days after posting; and 

  

	 	(c)	if sent by facsimile transmission or e-mail be deemed to have been given when transmitted provided that a confirmatory copy of such facsimile transmission or e-mail shall have been
sent by prepaid first class mail within 24 (twenty-four) hours of such transmission. 

  

	 	14.8.3	 BAXTER and BAXTER ONCOLOGY’s address for service of notices and other documents shall be: 

  
 BAXTER ONCOLOGY GmbH 
 Daimlerstrasse 40 
 60314 Frankfurt 
 Germany 
  
 For the Attention
of: Geschaeftsfuehrung 
  
 With a copy to: 
 BAXTER Deutschland GmbH 
 Legal Department

 Edisonstr. 4 
 D-85716
Unterschleissheim 
 Germany 
  

	 	14.8.4	 THRESHOLD’s address for service of notices and other documents shall be: 

  
 THRESHOLD PHARMACEUTICALS, INC. 
 951 Gateway Boulevard, Suite 3A 
 South San Francisco, CA 94080 
 United States of America 
 For the Attention
of: The Chief Executive Officer 
  

 30 

 With a copy to: 
  
 Heller Ehrman White & McAuliffe, LLP 
 275 Middlefield Road 
 Menlo Park, CA 94025 
 For the Attention of: Sarah O’Dowd 
  

	 	14.9	Entire Agreement 

  

	 	14.9.1	 This Agreement shall constitute the entire agreement and understanding of the Parties relating to the subject matter of this Agreement and shall supersede all prior oral or
written agreements, understandings or arrangements between them relating to such subjects. 

  

	 	14.9.2	 No change or addition may be made to this Agreement except in writing signed by the duly authorised representatives of the Parties. 

  

	 	14.9.3	 Nothing in this Clause 14.9 shall operate to: 

  

	 	(a)	exclude any provision implied into this Agreement by law and which may not be excluded by law; or 

  

	 	(b)	limit or exclude any liability, right or remedy to a greater extent than is permissible under law. 

  

	 	14.10 	Compliance with Local Requirements 

  
 If in any country the effect of any provision(s) of this Agreement or the absence from this Agreement of any provision(s) would be to prejudice the
Licensed Patents or any remedy under the Licensed Patents, the Parties will make such amendments to this Agreement and execute such further agreements and documents limited to that part of the Territory which falls under such jurisdiction as may be
necessary to remove such prejudicial effects. 
  

	 	14.11 	Publicity 

  
 The Parties may jointly agree to make a press release within three (3) months following the execution of this Agreement. Thereafter, Threshold shall be
free, in its sole discretion, and have the exclusive right to originate any publicity, news release, or public announcement concerning Licensed Products, provided Threshold (i) provides BAXTER ONCOLOGY two (2) days’ advance written notice of
the publicity, news release, or public announcement together with its content and gives due consideration to any comments provided by BAXTER ONCOLOGY within one (1) day thereof; and (ii) does not use the name of BAXTER or BAXTER ONCOLOGY without the
express, advance written consent of BAXTER or BAXTER ONCOLOGY, respectively, other than to state that the Licensed Product is “licensed to Threshold Pharmaceuticals, Inc., by Baxter Oncology.” Otherwise, in the absence of specific
agreement 

  

 31 

 
between the Parties, which agreement shall not be unreasonably withheld or delayed: (i) neither Party shall originate any publicity, news release or public
announcement, written or oral, whether to the public or press, relating to financial provisions of this Agreement or to any amendment thereof save only such announcement as in the opinion of counsel for the Party making such announcement is required
by law, regulation, or the rules of any stock exchange to be made, (ii) any such announcements shall be factual and as brief as possible, and (iii) if a Party decides to make such announcement, it will give the other Party two (2) days advance
written notice of the text of the announcement so that the other Party will have an opportunity to comment upon the announcement. In addition, THRESHOLD may provide information concerning financial provisions to stockholders, executive management,
and prospective sublicensees and investors. THRESHOLD may also originate, in its discretion, publicity, news releases, or public announcements concerning Licensed Product other than, except as set forth above, financial information. 
  

	 	14.12 	Notification to European Commission and Compliance with Hart Scott Rodino 

  
 The Parties shall co-operate fully and shall individually and collectively use all reasonable endeavours to procure any governmental or regulatory
approvals with regard to applicable anti-trust and competition law as may be necessary or advisable in connection with the conclusion and/or implementation of this Agreement are obtained as soon as possible. BAXTER ONCOLOGY will pay the costs of any
filing fees required to be paid in connection with such submissions or approvals. 
  

	15.	Arbitration; Governing Law 

  

	 	15.1	The construction, validity and performance of this Agreement shall be governed in all respects by the laws of the State of California without taking into consideration any of its
conflict of laws provisions. 

  

	 	15.2	The Parties will attempt in good faith to resolve any dispute, controversy or claim arising out of or relating to the interpretation, performance or enforceability of this Agreement
promptly by negotiation between executives of the Parties. In the event that such negotiations do not result in a mutually acceptable resolution, the Parties agree to consider other dispute resolution mechanisms including mediation and arbitration.
In the event that the Parties fail to agree on a mutually acceptable solution within a period of thirty (30) business days, any such dispute shall be submitted to binding arbitration. 

  

	 	15.3	 Such arbitration shall be conducted in accordance with the American Arbitration Association. Notwithstanding those rules, the following 

  

 32 

	 	 
provisions shall in any event apply to any issue submitted for arbitration hereunder: 

  

	 	15.3.1	 The arbitration shall be conducted by a panel of three (3) neutral arbitrators (“Panel”). One (1) arbitrator shall be appointed by each Party and the third member
shall be appointed by the two (2) arbitrators appointed by the Parties. Each Party will select an arbitrator within fifteen (15) business days following the demand for arbitration. The two (2) arbitrators selected by the Parties will appoint the
third arbitrator within ten (10) days following their appointment. Notwithstanding the above and in the interest of obtaining a judgment within the shortest possible period in connection with certain bona fide disputes or technical or developmental
matters that require referral to independent experts, the Parties may agree to appoint only one (1) single neutral arbitrator selected in agreement by both Parties. 

  

	 	15.3.2	 The language to be used in the arbitration shall be English. 

  

	 	15.3.3	 Any arbitrator selected by the Parties may be of any nationality, and need not be a lawyer or hold any other professional status or membership but will be selected on the
basis of his or her qualifications and expertise with respect to the matter under dispute. 

  

	 	15.3.4	 The arbitration shall be held in New York, New York. 

  

	 	15.3.5	 The specific pleading schedule for each proceeding shall be determined by the Parties in consultation with the Panel within fifteen (15) business days following the selection
of the arbitrators. 

  

	 	15.3.6	 Unless the Parties otherwise agree at the time a particular issue is submitted for arbitration, the Panel shall be required as a condition to their engagement to agree to
render a decision within thirty (30) days of the date on which the record in the proceeding is completed, but in no case more than one hundred and twenty (120) days after the date of their engagement. The time period for cure specified in Clause 11
shall be suspended upon institution of arbitration until completion of such arbitration. 

  

	 	15.3.7	 The Parties shall use their best efforts to schedule and make their submissions, and to take all other necessary actions in connection with the proceeding, at a time and in a
manner which will permit the Panel to render their decision in accordance with the schedule set forth herein. 

  

	 	15.3.8	  All communications with the arbitrator(s) during the proceeding shall be made in writing, with a copy thereof delivered simultaneously to the other Party to
the proceeding, or if made 

  

 33 

	 	 
orally, made only in the presence of the other Party to the proceeding or its representative. 

  

	 	15.3.9	 All decisions by the Panel shall be rendered by majority vote. The arbitration award or order shall be rendered in writing and shall be final and binding upon the Parties. The
arbitrator(s) shall establish and enforce appropriate rules to ensure that the arbitration proceedings, including the decisions, are kept confidential and that all confidential and/or proprietary information of the Parties is kept confidential and
is used for no purpose other than for such arbitration proceedings. 

  

	 	15.3.10	 Judgment on any order or award shall be entered by any court of competent jurisdiction. 

  

	 	15.3.11	 Each Party shall bear its own expenses and attorney’s fees in connection with the arbitration. 

  

	 	15.3.12	 The fees and expenses of the arbitrator(s) shall be equally shared except that if, in the opinion of the arbitrators, any claim by a Party hereto or any defense or objection
thereto by the other Party was unreasonable and frivolous, the arbitrators may in their discretion assess as part of the award all or any part of the arbitration expenses of the other Party (including reasonable attorney’s fees) and expenses of
the arbitrators against the Party raising such unreasonable and frivolous claim, defense or objection. 

  
 In Witness Whereof the duly authorized representatives of the Parties have executed this Agreement the day and year written below 
  

					
	 Date: July 29, 2003
	 	 	 	 Date: August 5, 2003

			
	 /s/ Phillip Saame
	 	 	 	 /s/ George F. Tidmarsh

	
	 	 	 	

	 /s/ Bernhard Kutscher
	 	 	 	 Signed by George F. Tidmarsh
 For and on behalf of
 THRESHOLD Pharmaceuticals Inc.

	
	 	 	 
	 Signed by Phillip Saame & Bernhard Kutscher
 For and on behalf of
 BAXTER ONCOLOGY GmbH
	 	 	 

  

					
	 Date: July 31, 2003
	 	 	 	 
			
	 /s/ Jan Stern Reed
	 	 	 	  
	
	 	 	 	 
	 Signed by Jan Stern Reed
 For and on behalf of
 BAXTER International Inc.
	 	 	 	 

  

 34 

 Schedules 
  

			
	 Schedule 1.4:
	  	Licensed Patents:
	 	  	Part A                Baxter Oncology Patents
		
	 	  	Part B                 Manufacturing Patents
		
	 Schedule 1.15:
	  	License Grant from DKFZ

  

 35 

 SCHEDULE 1.4 
  
 Part A: Baxter Oncology Patents 
  
 Patents based on German Application P 38 35 772.0. 
  
 Title: “Antitumor Saccharide Conjugates”, covering molecule, production and medical use 
  

	1.	Patent No:        EP 369 182 

  

	2.	Patent No:        AT 369 182 

  

	3.	Patent No:        BE 369 182 

  

	4.	Patent No:        CA 2 001 129 

  

	5.	Patent No:        CH 369 182 

  

	6.	Patent No:        DE 369 182 

  

	7.	Patent No:        DK 170 422 

  

	8.	Applic. No:      DK 1170/93        Notice of allowance received 

  

	9.	Patent No:        ES 369 182 

  

	10.	Patent No:        FI 95 268 

  

	11.	Patent No:        FR 369 182 

  

	12.	Patent No:        GB 369 182 

  

	13.	Patent No:        GR 369 182 

  

	14.	Patent No:        HK 1574/1995 

  

	15.	Patent No:        HU 206 124 

  

	16.	Patent No:        IE 67 529 

  

	17.	Patent No:        IT 369 182 

  

	18.	Patent No:        JP 2 518 739 

  

	19.	Patent No:        JP 3 056 408 

  

	20.	Patent No:        LU 369 182 

  

	21.	Patent No:        NL 369 182 

  

	22.	Patent No:        NO 173 548 

  

	23.	Patent No:        PT 92 034 

  

	24.	Patent No:        SE 369 182 

  

	25.	Patent No:        SG 95 913 

  

	26.	Patent No:        US 5 622 936 

  

 36 

 Part B. Patent covering production 
  
 Title: “Verfahren zur Herstellung von Tetrabenzylglucose” (Procedure for the production of Tetrabenzylglucose) 

 

	27.	Patent No:        DE 195 34 366 

  

 37 

 Schedule 1.15 
  
 [***] 
  

 38

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