Document:

scai-ex104_370.htm

 

Exhibit 10.4

THIRD AMENDMENT TO OFFICE LEASE

This THIRD AMENDMENT TO OFFICE LEASE (this "Third Amendment") made this ___ day of March, 20 16 ("Execution Date"), by and between TR DEERFIELD OFFICE LLC, a Delaware limited liability company ("Landlord"), and  SURGICAL  CARE AFFILIATES, LLC, a Delaware limited liability company ("Tenant").

 

WHEREAS, Landlord and Tenant entered into that certain Standard Office Lease dated as of May 10, 2010 (the "Original Lease"), as amended by that certain First Amendment to Lease dated April 13, 2011 (the "First Amendment") and as further amended by that certain Second Amendment to Lease dated August 22, 2013 (the "Second Amendment", collectively the "Lease") under which Landlord demised to Tenant the premises containing a total of 7,526 rentable square feet located in Suites 250 and 255 on the second (2nd) floor (the "Existing Premises") of the building located at 520 Lake Cook Road, Deerfield, Illinois (the "520 Building") of the project known as Corporate 500 Centre, consisting of 500 Lake Cook Road, 510 Lake Cook Road, 520 Lake Cook Road and 540 Lake Cook Road, located in Deerfield, Illinois (the "Project"), as more particularly set forth in the Lease.

 

WHEREAS, Landlord and Tenant desire to provide for a relocation of Tenant from the Existing Premises to New Premises located at 510 Lake Cook Road, Deerfield, Illinois (the "510 Building"), an extension of the Term of the Lease, a modification of the rent due under the Lease and amend certain provisions of the Lease, as more particularly set forth in this Third Amendment.

 

NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the mutual agreements set forth in the Lease, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant  have  agreed,  and hereby agree that the Lease is amended as follows:

 

1. Recitals Incorporated. The Recitals  set forth above are hereby  incorporated  by this reference and shall be deemed terms and provisions hereof with the same force and effect as if fully set forth in this Section 1.

 

2. Defined Terms. As used in this Third Amendment, the following terms shall have the respective meanings indicated below:

(a) "Relocation Premises" shall mean the premises on the fourth (41h) floor of the 510 Building containing approximately 28,410 rentable square feet known as Suite 410 and shown on the plan attached hereto as Exhibit A;

 

(b) "Relocation Commencement Date" shall mean the date that is the earlier to occur of (i) the date that Tenant's Work is Substantially Completed (as such terms are defined in Exhibit B, the Workletter, described in Section 7) which is estimated to be June 1, 2016, or (ii) the date that Tenant takes occupancy of the Relocation Premises for the purpose of conducting business therefrom; provided that such date shall be no later than October 31, 2016;

 

 

 

(c) "Relocation Delivery Date" shall mean the date that Landlord delivers the Relocation Premises to Tenant, which shall be the date following the Execution Date;

 

(d) "Relocation Term" shall mean a period of approximately one hundred thirty (130) months commencing on the Relocation Commencement Date and expiring on the last day of the calendar month that is one hundred thirty (130) full calendar months after the Relocation Commencement Date (the "Relocation Expiration Date"); and

 

(e) "Tenant's Proportionate Share" as defined in the Lease is as of the Relocation Commencement Date amended to be 4.25%.

 

Capitalized terms which are not otherwise defined herein shall be deemed to have the same meanings herein as are ascribed to such terms in the Lease. All references herein to "Lease" shall be deemed to be references to the Lease, as amended hereby.

 

3. Substitution of Relocation Premises; Termination of Lease of  existing Premises. Tenant shall vacate and will yield up to Landlord possession of the Existing Premises in accordance with all applicable provisions of the Lease and this Third Amendment  within ten (10) days following the Relocation Commencement Date. Upon the later  of  (a) the  date  of delivery of the Existing Premises to Landlord by Tenant in accordance with the provisions hereof (the "Give Back Date") or (b) the Relocation Commencement Date, (i) the Premises under the Lease shall then be amended so that the "Premises" shall consist of the Relocation Premises in place of the Existing Premises (ii) the Building under the Lease shall then be amended so that the "Building" shall be the 510 Building in place of the 520 Building and (iii) Tenant's obligations under the Lease with respect to the Existing Premises shall be terminated, except to the extent that such obligations are intended to survive the expiration or termination of the Lease.

 

4. Temporary Space. Notwithstanding any other provision of the Lease,  on  or before March 21, 2016 (the "Access Date"), Landlord shall make available to Tenant and Tenant

)shall have the right to occupy 3,478 rentable square feet in Suite 160 on the first (1st )

floor of the

building of the Project located at 540 Lake Cook Road, Deerfield, Illinois  (the "Temporary Space"), as depicted on Exhibit A-1, for the Temporary Occupancy Period (as hereinafter defined), which Temporary Space shall be available for use by Tenant during the period of construction of the Relocation Premises. The Temporary Space shall be delivered in its "as-is" condition and Tenant shall be responsible at its cost for the installation of any telephone or data wiring or cables in the Temporary Space; provided that Tenant shall not be obligated to, nor have the right to, make any other installations, alterations, additions or  changes  to the  Temporary Space. To the extent that Tenant installs any telephone or data wiring or cables in the Temporary Space, Tenant at its cost and expense shall remove such wiring or cables on or  before  the expiration of the Temporary Occupancy Period and shall repair any damage resulting from such removal. The "Temporary Occupancy Period" shall be defined as the period commencing upon the Access Date and expiring on the date which is six (6) months thereafter; provided that such expiration date shall be adjusted on a day for day basis if Landlord by its improper or wrongful acts causes any delay with regard to Tenant completing Tenant's Work, including if Landlord fails to comply with the time periods for Landlord to approve or disapprove  the Plans or any

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revised Plans as provided in Paragraph 3(c) of the  Workletter. During  the  Temporary Occupancy Period, all of the terms and conditions of the Lease shall apply as though the Temporary Space were the Relocation Premises, including but not limited to the obligation of Tenant to pay Additional Rent with respect to Direct Costs set forth in Section 3 of the Lease commencing as of the Access Date and the obligations of Tenant set forth in Sections 13 and 14 of the Lease with respect to indemnity, waiver of subrogation and  insurance,  except  that  (i) Tenant shall not be obligated to pay Basic Rent, (ii) the Relocation Term  shall not commence until the Relocation Commencement Date, and (iii) the abatement of Rent set forth in Section 5 below shall not commence until the Relocation Commencement Date. In the event that Tenant fails to surrender the Temporary Space to Landlord at the expiration of the  Temporary Occupancy Period, Tenant shall be responsible to pay to Landlord rent for the Temporary Space (the "Temporary Space Rent") from and after the expiration of the Temporary Occupancy Period until the date the Tenant surrenders the Temporary Space to Landlord, which Temporary Space Rent shall be payable in accordance with the provisions of the Lease.  The Temporary  Space Rent shall be a monthly Basic Rent of $20.50 per rentable square foot of  the  Relocation Premises, plus Additional Rent with respect to Direct Costs attributable to the Temporary Space. Notwithstanding the foregoing, Tenant shall surrender the Temporary Space to Landlord no later than the Relocation  Commencement Date.

 

5. Rental. During the period through the later of (i) the date of delivery of the Existing Premises to Landlord  by Tenant or (ii) the day prior to the Relocation Commencement Date, Tenant shall continue to be responsible to pay to Landlord Basic Rent and Additional Rent with respect to Direct Costs, which shall  be payable in accordance with the provisions of the Lease. On and after the Relocation Commencement Date, Basic Rent due under the Lease shall be increased to the amounts set forth in the following schedule, which shall be payable in accordance with the provisions of the Lease:

 

BASIC RENT SCHEDULE

 

				
	
 

Period
	
Annual Basic Rent
	
Monthly Basic Rent
	
Annual Rent Per Sguare Foot

	
Relocation  Commencement Date - Month  12
	
$582,405.00*
	
$48,533.75*
	
$20.50*

	
Months 13 - 24
	
$596,965.13*
	
$49,747.09*
	
$21.01

	
Months 25 - 36
	
$611,889 .25
	
$50,990.77
	
$21.54

	
Months 37 - 48
	
$627,186.48
	
$52,265.54
	
$22.08

	
Months 49 - 60
	
$642,866.15
	
$53,572.18
	
$22.63

	
Months 61 - 72
	
$658,937.80
	
$54,911.48
	
$23.19

	
Months 73 - 84
	
$675,411.25
	
$56,284.27
	
$23.77

	
Months 85 - 96
	
$692,296.53
	
$57,691.38
	
$24.37

	
Months 97 - 108
	
$709,603.94
	
$59,133.66
	
$24.98

	
Months 109 - 120
	
$727,344.04
	
$60,612.00
	
$25.60

 

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Months 121 - 130
	
$745,527.64
	
$62,127.30
	
$26.24

 

 

 

*Notwithstanding anything contained in the Lease to the contrary, provided that an Event of Default has not occurred and is continuing under the Lease, Tenant shall have no obligation to pay Basic Rent or Additional Rent with respect to Direct Costs during (i) the first ten (10) months of the Relocation Term with respect to the entire Relocation Premises and (ii) during the succeeding six (6) months with respect to that portion of the Relocation Premises consisting of 1,672 rentable square feet, being an amount of Basic Rent for such 1.672 rentable square feet of (x) $2,856.33 per month for the last two (2) months of the first twelve (12) months of the Relocation Term and (y) $2,927.39 per month for the first four (4) months of the second twelve (12) months of the Relocation Term, plus an abatement of Additional Rent with respect to Direct Costs with respect to such space (the "Abatement Period"). Tenant shall continue to be responsible for payments of all other amounts due and owing under this Third Amendment during the Abatement Period. However, in the event of an Event of Default by Tenant under the terms of the Original Lease, as hereby amended, beyond any applicable notice and cure periods, which involves a failure by Tenant to pay Rent and/or results in early termination pursuant to the provisions of Section 20 of the Original Lease, then as a part of the recovery set forth in Section 20 of the Original Lease, Landlord shall be entitled to the recovery of any Basic Rent or Additional Rent that was previously abated under the provisions of this Section 5.

 

During the Term of the Lease, Tenant shall continue to pay as Additional Rent Tenant's Proportionate Share of the Direct Costs together with all other amounts and charges payable by Tenant to Landlord under the Lease. Commencing on the Relocation Commencement Date and continuing through the Relocation Expiration Date, Tenant shall be responsible to pay as Additional Rent Tenant's Proportionate Share as defined in Section 2(e) of this Third Amendment of Direct Costs together with all amounts and charges payable by Tenant to Landlord under the Lease.

 

6. Condition of Premises. Tenant is in possession of the Existing Premises and accepts the same "as is" without any representations or warranties of any kind, subject to defects or conditions that are the responsibility of Landlord to repair or maintain pursuant to the express provisions of the Lease. Upon the Relocation Commencement Date, Tenant will accept the Relocation Premises "as is" without any representations or warranties of any kind, subject to defects or conditions that are the responsibility of Landlord to repair or maintain pursuant to the express provisions of the Lease. No agreement of Landlord to alter, remodel, decorate, repair or improve the Existing Premises, the Relocation Premises or the Building (or to provide Tenant with any credit or allowance for the same), and no representation regarding the condition of the Existing Premises, the Relocation Premises or the Building, have been made by or on behalf of Landlord or relied upon by Tenant, except as otherwise expressly provided in Section 7 below. Following the Relocation Commencement Date, the parties shall execute a supplemental agreement in the form attached hereto as Exhibit C, Declaration of Relocation Premises Commencement Date. The parties' failure to execute such supplemental agreement shall in no way affect Tenant's obligation to perform under this Third Amendment and the Lease.

 

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7. Tenant Improvements. Landlord agrees that commencing on and after the Execution Date, Tenant shall have the right to perform certain tenant improvements to the Relocation Premises in accordance with the terms and conditions of the Workletter, which is attached hereto as Exhibit B.

 

8. Security Deposit. Concurrent with the execution of this Third Amendment by Tenant, Tenant shall deliver to Landlord the amount of Forty-Eight Thousand Nine Hundred Ninety-Nine and 90/100 Dollars ($48,999.90) (the "Additional Security Deposit"), which amount is in add ition to the Security Deposit of Twenty-Seven Thousand Four Hundred Twenty­ Three and 00/100 Dollars ($27,423.00) currently held by Landlord in connection with the Lease (the "Original Security Deposit"), for a total of Seventy-Six Thousand Four Hundred Twenty­ Two and 90/100 Dollars ($76,422.90) (the "New Security Deposit"). Upon the Landlord's receipt of the Additional Security Deposit, any reference in the Lease to the Security Deposit shall be deemed to mean the New Security Deposit.

 

9. Parking. Commencing on and after the Relocation Commencement Date and continuing throughout the Term of the Lease, Section 1K, Parking Passes, of the Original Lease as amended by Section 7 of the First Amendment and by Section 8 of the Second Amendment is hereby further amended to provide that Tenant shall lease a total of ninety-one (91) unreserved parking spaces on the surface parking lot of the Project (based upon a ratio of 3.2 parking spaces per 1,000 rentable square feet), which parking spaces shall be free of charge. In connection with the foregoing, Tenant shall have the right to convert up to six (6) of said unreserved parking spaces to lower level executive parking spaces in the parking garage of the 510 Building, subject to availability, upon payment of Landlord's then prevailing parking charges for such reserved spaces, which parking charges  are subject to increase from time to time as determined by Landlord. At any time, Tenant may convert said executive parking spaces in the parking garage of the 510 Building back to unreserved parking spaces on the surface parking lot of the Project. Tenant shall exercise such conversion right upon written notice to Landlord of the exercise thereof. Notwithstanding the foregoing, Landlord acknowledges that Tenant's parki ng requirements may exceed the number of parking spaces and the designated parking ratio for the Project stated herein. In the event that Tenant's required parking exceeds  such number  of parking spaces and such designated parking ratio, Landlord will use commercially reasonable efforts to locate additional parking within the Project to accommodate such excess parking requirements; provided that such additional parking when combined with the ninety-one (91) unreserved parking spaces described above shall not exceed a total of 116 unreserved parking spaces. Such parking will be located in an area determined by Landlord in its sole discretion. As of the Relocation Commencement Date, the second sentence of Section 1K of the Original Lease and also of Section 7 of the First Amendment are hereby deleted and of no further force and effect. Tenant's use of the parking spaces provided herein shall be in accordance with and subject to Section 23 of the Original Lease as amended. In furtherance thereof, Tenant agrees that Landlord shall have the right to monitor and enforce the parking provisions thereof and hereof, including by issuing parking passes, decals, hang tags or parking control mechanisms and that Tenant shall cooperate with Landlord in connection therewith.

 

10. Balcony. During the Relocation Term, Tenant shall have the right to use the balcony (the "Balcony") adjacent to the Relocation Premises. The square footage of the Balcony is not included within the definition of the Relocation Premises for the purpose of the calculation

 

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of Basic Rent or Tenant's Proportionate Share. The Balcony shall be subject to all of the terms and conditions of the Lease, including Section 3 regarding Additional Rent with respect to Direct Costs; Section 9, Repairs and Alterations; Section 13, Indemnity and Section 14, Insurance, provided that Tenant shall not be obligated to pay Rent with respect thereto. In connection with its use of the Balcony, Tenant shall keep the sliding glass doors between the Relocation Premises and the Balcony closed, except for entering or exiting the Balcony. Further, Tenant shall not grill on the Balcony, install any bird feeders, nor materially interfere with the use and occupancy of their premises by other tenants of the Building or Project.  Notwithstanding  anything contained herein to the contrary, Tenant shall have the right to resurface the Balcony decking, which decking and its installation shall be subject to Landlord's reasonable approval and undertaken by Tenant in accordance with Section 9 of the Original Lease, which will include appropriate warranties with respect thereto. If requested by Landlord at the time of Landlord's approval, Tenant shall remove such decking at the expiration or earlier termination of the Term of the Lease and shall restore the surface of the Balcony to the same or better condition as of the date that such new decking was installed.

 

11. Right of First Offer.

 

(a) Tenant shall have a right of first offer to add to the Relocation Premises the First Offered Space as hereinafter defined, subject to the terms and conditions hereinafter set forth. "First Offered Space" shall mean any vacant and available space located on the fourth (4th) floor of the 510 Building.

 

(b) If during the Relocation Term, First Offered  Space  becomes  available, then Landlord shall offer to Tenant the right to lease such First Offered Space upon the terms and conditions described herein. Tenant may only exercise the right of first offer described herein if as of the date that Tenant elects to exercise such right pursuant to Tenant's Notice (as hereinafter defined) and as of the commencement date of the term of the lease of the First Offered Space, an Event of Default has not occurred and is continuing under the Lease and further the Lease shall not have theretofore  been assigned, nor has more than 25% of the Relocation Premises been sublet.

 

(c) Such offer shall be made by Landlord to Tenant in a written notice (the "First Offer Notice") which offer shall designate the space being offered and shall specify the terms for such First Offered Space, which shall be upon the same terms and conditions as set forth in the Lease, except that (a) Landlord shall have no obligation to alter, improve or remodel the First Offered Space, nor to contribute any amount towards tenant improvements and Tenant shall accept such Space in its "as-is" condition unless otherwise specified in the First Offer Notice; (b) the Basic Rent and Additional Rent with respect to Direct Costs for the First Offered Space payable during the proposed term shall equal the rental rate that Landlord intends to offer the First Offered Space to prospective tenants as determined by Landlord in its sole discretion; and (c) the term for the First Offered Space shall be the term that Landlord intends to offer the First Offered Space to prospective tenants as determined by Landlord in its sole discretion, subject to adjustment as provided in Section 1l (d) below. Tenant may accept the offer set forth in the First Offer Notice by delivering to Landlord an unconditional acceptance in writing ("Tenant's Notice") of such offer within ten (10) days after delivery by Landlord of the First Offer

 

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Notice to Tenant. Time shall be of the essence with respect to the giving of Tenant's Notice. If Tenant does not accept (or fails to timely accept) an offer made by Landlord pursuant to the  provisions of this Section with respect to the First Offered Space designated in the First Offer Notice, Landlord may lease the space to a third party in accordance with the terms of the First Offer Notice, provided, however, if Landlord does not lease the First Offered Space to a third party within one hundred eighty (180) days after the date of Tenant's election to not accept (or failure to timely accept) an offer made by Landlord pursuant to the provisions of this Section, then Land lord shall give an additional notice to Tenant reoffering the First Offered Space and Tenant shall have the right to lease the space in accordance with the procedures set forth in this Section. Further to the foregoing, if Landlord proposes to lease the First Offered Space on terms materially more favorable to a third party than disclosed to Tenant in the First Offer Notice, then Landlord shall give an additional notice to Tenant of the revised terms, and Tenant shall have the right to lease the space in accordance with the terms of the revised notice and otherwise in accordance with the procedures set forth in this Section. For purposes hereof, "terms materially more favorable" shall mean terms that result in a change on a net effective basis of five percent (5%) or more (using an eight pe_rcent (8%) discount rate) to the material economic terms regarding the First Offered Space.

 

(d) Notwithstanding the terms of the First Offer Notice, in the event that Tenant timely accepts the First Offered Space pursuant to the terms of the First Offer Notice and in accordance with the procedures of this Section, the commencement date and the expiration date of the term of the lease of the First Offered Space and of Tenant's obligation to pay Basic Rent and Additional Rent with respect to the First Offered Space shall be adjusted in the lease amendment as reasonably determined by Landlord to provide (i) for deferral of the commencement date from the delivery date to Tenant of the First Offered Space until the earlier of (x) the date of occupancy for the conduct of business of the First Offered Space by Tenant or (y) the date of the expiration of ninety

(90) days from the delivery date to allow Tenant to complete tenant improvements in the First Offered Space and (ii), provided that the remaining term of the Relocation Term will be not less than three (3) years as of the delivery date of the First Offered Space to Tenant, then the term of the lease of the First Offered Space shall expire on the Relocation Expiration Date in lieu of the expiration date set forth in the First Offer Notice, provided further that (x) the amount of rent on a per rentable square foot basis payable to Land lord during the term of the lease of the First Offered Space shall also be adjusted to be not less than the total amount of rent on a per rentable square foot basis that would have been payable to Landlord under the First Offer Notice and to reflect the differences resulting from the term of the Lease of the First Offered Space expiring on the Relocation Expiration Date as compared to the expiration date of such term described in the First Offer Notice and (y) any abatement of rent offered to Tenant and tenant improvement allowances to be given to Tenant or tenant improvement costs incurred by Landlord to the extent described in the First Offer Notice shall be prorated to reflect the reduced term for the First Offered Space.

 

(e) Tenant must accept all of the First Offered Space offered by Landlord at any one time in a First Offer Notice if Tenant desires to accept any of such First Offered Space and may not exercise its right with respect to only a portion of such space.  In

 

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connection with the acceptance of the First Offered Space by Tenant for lease, within twenty (20) business days of Tenant's Notice, Landlord and Tenant shall execute a lease amendm,ent prepared by Landlord and reasonably approved by Tenant and reflecting the addition of the First Offered Space to the original Relocation Premises pursuant to the terms and provisions described in the First Offer Notice, with the other terms of the Lease remaining  unchanged.

 

12. Expansion Right.

 

(a) Tenant shall have a one-time right to add to the Relocation Premises as of the last day of the sixth (6th) year of the Relocation Term the Expansion Space as hereinafter defined, subject to the terms and conditions hereinafter set forth. "Expansion Space" shall mean any vacant and available space consisting of 3,000 - 5,000 rentable square feet and located in the Project, provided that such space shall not be deemed to be "available" if it is subject to the rights of an existing tenant of the Building or of the Project or if an existing tenant has elected to continue in occupancy thereof. Landlord agrees to exercise commercially reasonable efforts to provide space as the Expansion Space which is located within the Building.

 

(b) If Tenant wishes to exercise the right to expand described herein, then Tenant shall deliver to Landlord a written notice ("Tenant's Notice") with respect thereto no later than twelve (12) months prior to the last day of the sixth (6th) year of the Relocation Term. Within  thirty (30) days of Landlord's receipt of Tenant's Notice, Landlord shall offer to Tenant the right to lease Expansion Space, if any, that will be

vacant and available as of the last day of the sixth (61h) year of the Relocation Term upon the terms and conditions described herein. Tenant may only exercise the expansion right described herein if as of the date that Tenant elects to exercise such right pursuant to

Tenant's Acceptance (as hereinafter defined) and as of the commencement date of the term of the lease of the Expansion Space, an Event of Default has not occurred and is continuing under the Lease and further the Lease shall not have theretofore been assigned, nor has more than 25% of the Relocation Premises been sublet.

 

(c) Such offer shall be made by Landlord to Tenant in a written notice (the "Expansion Notice") which offer shall designate the space being offered and shall specify the terms for such Expansion Space, which shall be upon the same terms and conditions as set forth in the Lease, except that (a) Landlord shall have no obligation to alter, improve or remodel the Expansion Space, nor to contribute any amount towards tenant improvements and Tenant shall accept such Space in its "as-is" condition; (b) the Basic Rent and Additional Rent with respect to Direct Costs for the Expansion Space payable during the proposed term shall equal the Fair Market Rental Rate (as defined in Section 12(e) below) that Landlord intends to offer the Expansion Space to prospective tenants as determined by Landlord in its sole discretion; and (c) the term for the Expansion Space shall be the term that Landlord intends to offer the Expansion Space to prospective tenants as determined by Landlord in its sole discretion. Tenant may accept the offer set forth in the Expansion Notice by delivering to Landlord an unconditional acceptance in writing ("Tenant's Acceptance") of such offer within the period described below after delivery by Landlord of the Expansion Notice to Tenant.  Time shall be of the essence

 

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with respect to the giving of Tenant's Acceptance. If Tenant does not accept (or fails to timely accept) an offer made by Land lord pursuant to the provisions of this Section with respect to the Expansion Space designated in the Expansion Notice, Landlord shall not have any further obligation to Tenant with respect thereto and Landlord may thereafter lease the space to a third party on such terms and conditions as it shall determine.

 

(d) Notwithstanding the terms of the Expansion Notice, in the event  that Tenant timely accepts the Expansion Space pursuant to the terms of the Expansion Notice and in accordance with the procedures of this Section, the commencement  date and the expiration date of the term of the lease of the Expansion Space and of Tenant's obligation to pay Basic Rent and Additional Rent with respect to the Expansion Space shall be adjusted in the lease amendment as reasonably determined by Land lord to provide (i) for a deferral of the commencement date from the delivery date to Tenant of the Expansion Space until the earlier of (x) the date of occupancy for the conduct of business of the Expansion Space by Tenant or (y) the date of the expiration of ninety (90) days from the delivery date to allow Tenant to complete tenant improvements in the Expansion Space and (ii), provided that the remaining term of the Relocation Term will be not less than three (3) years as of the delivery date of the Expansion Space to Tenant, then the term of the lease of the Expansion Space shall expire on the Relocation Expiration Date in lieu of the expiration date set forth in the Expansion Notice, provided further that (x) the amount of rent on a per rentable square foot basis payable to Landlord during the term of the lease of the Expansion Space shall also be adjusted to be not less than the total amount of rent on a per rentable square foot basis that would have been payable to Landlord under the Expansion Notice and to reflect the differences resulting from the term of the Lease of the Expansion Space expiring on the Relocation Expiration Date as compared to the expiration date of such term described in the Expansion Notice and (y) any abatement of rent offered to Tenant and tenant improvement allowances to be given to Tenant or tenant improvement costs incurred by Landlord to the extent described in the Expansion Notice shall be prorated to reflect the reduced term for the Expansion Space.

 

(e) Tenant must accept all of the Expansion Space offered by Landlord in the Expansion Notice if Tenant desires to accept any of such Expansion Space and may not exercise its right with respect to only a po1tion of such space. In connection with the acceptance of the Expansion Space by Tenant for lease, within twenty (20) business days of Tenant's Acceptance or the decision of the Appraisal Panel, as the case may be, Landlord and Tenant shall execute a lease amendment prepared by Landlord and reasonably approved by Tenant and reflecting the addition of the Expansion Space to the Relocation Premises pursuant to the terms and  provisions described in the  Expansion Notice, with the other terms of the Lease remaining unchanged.

 

(f) For purposes hereof, the term "Fair Market Rental Rate" shall mean the fair rental, as of the date for which such Fair Market Rental Rate is being calculated, per annum per rentable square foot for comparable space for a comparable term, by reference to comparable space with a comparable use in the Project, and in other buildings comparable to the Building in quality and location in southern Lake County (the "Pertinent Market") (but excluding those leases where the tenant has an equity interest in the property) , where the landlord has had a reasonable time to locate a tenant who rents

 

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with the knowledge of the uses to which the Premises can be  adapted,  and  neither landlord nor the prospective tenant is under any compulsion to rent. The Fair Market Rental Rate shall take into account and reflect the rental rates for new tenancies of similar quality properties and size (including tenant improvements  and  other  market concessions), including with respect to a renewal or extension the savings to Tenant resulting from Tenant not having to relocate its operations.

 

(g) Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Landlord's notice of the Fair Market Rental Rate within which to accept such rental or to object thereto in writing. In the event Tenant fails to accept  or  reject Landlord's determination of the Fair Market Rental Rate in writing prior to the expiration of Tenant's Review  Period, Tenant shall be deemed to have accepted Landlord's determination and it shall be binding on Tenant. In the event that Tenant objects to Landlord's determination of the Fair Market Rental Rate in writing during  Tenant's Review Period, Landlord and Tenant shall attempt to agree upon such Fair Market Rental Rate using their good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following the expiration of Tenant's Review Period (the "Outside Agreement  Date"), then Landlord and Tenant shall each deliver to the other within five(5) business days of the Outside Agreement Date via personal delivery or overnight messenger service their respective final written determinations of the Fair Market Rental Rate (each determination respectively, "Landlord's Determination" and "Tenant's Determination", and together, the "Determinations"). If Landlord and Tenant do not mutually agree upon the Fair Market Rental Rate within three (3) business days of the delivery of the Determinations, then, the Fair Market Rental Rate shall be submitted to arbitration and determined as follows, each party being bound by its determination and Landlord's Determination and Tenant's Determination establishing the only two choices available to the Appraisal Panel (as hereinafter defined).

 

(h) Within ten (10) days after the parties exchange the Determinations, the parties shall each appoint an arbitrator who shall be (A) a licensed Illinois real estate broker with at least ten (10) years' experience in leasing commercial office space in buildings similar to the Building in the Pertinent Market immediately prior to his or her appointment and (B) familiar with the rentals then being charged in the  Building and Project and in the comparable buildings. Landlord and Tenant may each appoint the real estate brokers who assisted in shaping Landlord's Determination and Tenant's Determination, respectively, as their respective arbitrators.  If either Landlord  or Tenant fails to appoint an arbitrator within the ten (10) day period, the Fair Market Rental Rate for the Extension Term shall be deemed to be the Determination of the  party  who properly selected an arbitrator. Within ten (10) days following their appointment, the two arbitrators so selected shall appoint a third,  similarly  qualified,  independent  arbitrator who has not had any prior business relationship with either party (the "Independent Arbitrator").   If an Independent Arbitrator has not been so selected by the end of such ten (10) day period, then either party, on behalf of both, may request such appointment by the local office of the Illinois Association of Realtors  or  the  American  Arbitration Association (or any successor thereto). Within five (5) days after the appointment of the Independent Arbitrator, Landlord and Tenant shall submit copies of Landlord's Determination   and   Tenant's   Determination   to  the  three   arbitrators   (the   "Appraisal

 

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Panel"). The Appraisal Panel shall meet to review the Determinations. Within ten (10) days following their meeting, the Appraisal Panel, by majority vote, shall select either Landlord's Determination or Tenant's Determination of Fair Market Rental Rate for the relevant Term, shall have no right to propose a middle ground or to modify either of the two proposals or the provisions of the Lease, and the Appraisal Panel shall render such decision to Landlord and Tenant within such ten (10) day period. The decision of the Appraisal Panel shall be final and binding upon the parties, and may be enforced in accordance with the provisions of the law of the State of Illinois. In the event of the failure, refusal or inability of any member of the Appraisal Panel to act, a successor shall be appointed in the manner that applied to the selection of the member being replaced. Each party shall pay all of the fees and expenses of the arbitrator designated by each party and shall share equally the fees and expenses of the Independent Arbitrator, and the costs and expenses incident to the proceedings, if any (excluding attorneys' fees and similar expenses of the parties which shall be borne separately by each of the parties).

 

13. Option to Terminate. Tenant shall have a one-time right to terminate the Lease effective as of the last day of the ninety-fourth (94th) month of the Relocation Term (the "Termination Date"). Tenant shall exercise such right to terminate upon delivery of a written notice thereof to Landlord (the "Termination Notice") given not less than twelve (12) months prior to the Termination Date. In connection with the exercise of the option to terminate provided herein, Tenant shall pay to Landlord a "Termination Fee" which is defined as that amount equal to (a) the unamortized portion of that amount expended by Landlord or given by Landlord as a concession or benefit to Tenant in connection with (i) the Construction Costs, including the Improvement Allowance, described in Exhibit B, the Workletter, (ii) the commissions paid by Landlord to the Brokers, (iii) the amount of abated Rent pursuant to Section 5 hereof, and (iv) the amount of Basic Rent and Additional Rent that would otherwise have been payable with respect to the Existing Premises during the period from the Give Back Date through March 31, 2017, but for the termination of Tenant's obligation to pay such Rent as provided in Section 3, such amortization to be made evenly over the last one hundred twenty (120) months of the Relocation Term (such amortization to be at an annual rate of interest of eight percent (8%)) and (b) three (3) months of Basic Rent and Additional Rent equal to such Rent payable for the month in which such Termination Date occurs. Prior to the Execution Date, Landlord has delivered to Tenant a calculation of the Termination Fee dated March U, 2016 which includes certain adjustments to be made to the Additional Rent portion of the abated Rent described in item (iii) of the foregoing sentence and also to the Rent with respect to the Existing Premises described in item (iv) of the foregoing sentence, which adjustments need to be made based  upon  amounts to be determined  as of September  30, 2018 (the "Calculation"). The Calculation has been accepted and approved by Tenant.  The adjusted amounts described in the Calculation shall be determined by Landlord and provided to Tenant within a reasonable period after said amounts are determined.  Tenant shall pay fifty percent (50%) of the Termination Fee to Landlord as of the date of the Termination Notice and such payment shall accompany such Notice.  Subsequent to Tenant's payment of the fifty percent (50%) of the Termination Fee, the remaining fifty percent (50%) portion of the Termination Fee shall be payable to Landlord no later than thirty (30) days prior to the Termination Date. In the event that the Termination Fee is not paid at the times stated herein, the option to terminate shall be null and void and of no further force and effect. Tenant may only exercise the option to terminate described herein if at the time Tenant notifies Landlord of the exercise of the option to terminate and as of the Termination

 

11

 

 

Date an Event of Default has not occurred and is continuing under the  Lease.  Except  as otherwise expressly provided herein, the Termination Notice may not be modified or withdrawn by Tenant after delivery thereof to Landlord. In addition to the payment of the Termination Fee as provided herein, Tenant shall continue to be obligated to pay all Monthly Basic Rent and Additional Rent arising under the Lease through and including the Termination Date. Upon an exercise by Tenant of the right to terminate in accordance with the provisions hereof, the Termination Date shall be deemed to be the Relocation Expiration Date of the Lease. Notwithstanding any other provision hereof, in the event that, during the Relocation Term, the rentable square feet of the Premises (being the Relocation Premises) is increased as a result of Tenant's exercise of the right of first offer set forth in Section 11 or of the expansion right set forth in Section 12 or otherwise, then the Termination Fee set forth herein shall be appropriately increased by Landlord to address any concessions, abatements, construction costs, tenant improvement allowances, brokers' commissions and other relevant costs incurred by Landlord or benefits provided to Tenant with respect to any such expansion consistent with item (a)(i), (ii) and (iii) and item (b) above.

 

14. Signage.

 

(a) Landlord shall (i) install at Landlord 's cost and expense a Building standard sign identifying Tenant at the entrance to the  Relocation Premises and (ii) identify Tenant at no cost on any directory sign established by Landlord for the Building in the same manner as the other occupants thereof. Tenant shall not, without Landlord's prior written consent, install, fix or use any other signs or any notice, picture, placard or poster, or any advertising or identifying media which is visible from the exterior of the Relocation  Premises.

 

(b) Provided that (a) Tenant then occupies a full floor of the Building, (b) an Event of Default has not occurred and is continuing under the Lease, (c) the Lease shall not have theretofore been assigned, nor all or any portion of the Relocation Premises been sublet, and (d) Tenant has received all required governmental approvals and permits, Tenant shall have the non-exclusive right during the Relocation Term and any Extension Term, at Tenant's sole cost and expense, but at no fee or charge for such license (the "Signage License") (i) to have Landlord install standard bu ilding monument signage reflecting Tenant's name ("Tenant's Signage Panel") on the monument sign for the 510 Building (the "Monument") in the position on the Monument determined by Landlord. The exact size, composition, design and installation of the Monument and Tenant's Signage Panel on the Monument shall be subject to Landlord's prior approval, which approval shall not be unreasonably withheld and shall be proportionate in size and placement based on the proportionate share of square footage of all tenants with signage panels on the Monument. In connection with the  Signage  License  granted  herein, Tenant shall comply with all laws, codes and ordinances which apply to such signage, including, without limitation, any rules and regulations of Deerfield,  Illi nois.  Tenant shall be responsible to pay for all of the costs and expenses of the Tenant's Signage Panel including, but not limited to, the costs of design, procurement of governmental approvals and permits, installation, maintenance,  repair and removal.  With respect  to the requirement that Tenant then occupies a full floor of the Building as described in item (a) above, in the event that the requirement that a tenant then leases and occupies a

 

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full floor of the building in order to be granted the right by Landlord to Monument signage, which requirement is provided in the lease between Landlord and Jim Beam Brands Co. (another tenant at the  Building) is waived or no longer applicable to Landlord and the Building, then the requirement that Tenant then occupies a full floor of the Building shall be modified to be that Tenant is then occupying no less than 28,000 rentable square feet in the Build ing.

 

15. Subordination. In connection with Section 17, Subordination, of the Original Lease, Landlord shall make reasonable commercial efforts to obtain from Landlord's lender and deliver to Tenant, within thirty (30) days of the Execution Date, a subordination, non-disturbance and attornment agreement in the form of Exhibit D which is attached hereto (the "SNDA"). Tenant shall be responsible for any costs or fees charged by the lender in connection with the SNDA, including any attorney's fees.

 

16. Relocation. During the Relocation Term, Landlord shall have the one time right to substitute for the Relocation Premises other premises within the Project (the "New Premises"), provided:

 

(a)h The New Premises shall be of comparable size and configuration to the Relocation Premises with the same level of finishes, including fresh paint, carpet and millwork, if applicable, and located on the fourth (41 ) floor or higher in the Building or other building in the Project as the case may be (the "Comparable Space");

 

(b) the Basic Rent and the Additional Rent with respect to Direct Costs payable under the Lease shall not be increased notwithstanding that such New Premises may contain more rentable square feet than the Relocation Premises and the Relocation Term shall not be required to be extended as a result of such relocation;

 

(c) Landlord shall pay the reasonable actual out-of-pocket expenses of Tenant for moving from the Relocation Premises to the New Premises, including but not limited to, the  cost of relocating Tenant's  personal property, fixtures, furniture and equipment, the installation of computer and telephone cabling and replacement of business cards, stationery and brochures to the extent that the suite number of the Relocation Premises is reflected therein;

 

(d) Landlord at its sole cost and expense shall improve the New Premises with tenant improvements and alterations (including but not limited to restrooms and the common areas in the Building) with finishes to the quality which are substantially similar to the Relocation Premises as of the Relocation Commencement Date; and

 

(e) Landlord shall give Tenant written notice of Landlord's exercise of the right to relocate Tenant to the New Premises (the "Relocation Notice") not less than two hundred seventy (270) days before the relocation date.  The

 

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Relocation Notice shall include a reasonably detailed description  of the New Premises. If Landlord exercises its right hereunder, the  New Premises shall thereafter be deemed for the purposes of the Lease as the Premises as of the relocation date.

 

In the event that the New Premises proposed by Landlord do not qualify as Comparable Space as defined in Section 15(a), then Tenant shall have the right to terminate the Lease. Such right shall be exercised by Tenant giving written notice of the exercise thereof to Landlord within ten (10) days of Tenant's receipt of the Relocation Notice, which notice from Tenant shall state a termination date for the Lease that is not more than two hundred seventy (270) days from the date of such notice (the "Termination Date"). In the event that Tenant exercises its right to terminate in accordance with the provisions of this Section, Landlord shall reimburse Tenant for the unamortized portion of that amount of the Construction Costs (as defined in Exhibit B, the Workletter) expended by Tenant in excess of the Improvement Allowance, plus any similar construction costs expended by Tenant in excess of any improvement allowance with respect to any expansions to the Relocation Premises, such amortization to be made evenly over the last one hundred twenty (120) months of the Relocation Term (and to be at an annual rate of interest of eight percent (8%). The amount payable to Tenant by Landlord described herein shall be payable no later than thirty (30) days prior to the Termination Date.

 

17. Option  to Extend.   Section 8 of the First Amendment  is hereby  deleted  and the following is inserted in lieu thereof:

 

(a) Provided that an Event of Default has not  occurred  and  is  continuing under the Lease, and provided further that the Lease shall not have theretofore  been assigned, nor has more than 25% of the Relocation Premises been sublet, Tenant shall have the right, at Tenant's option, to further extend the Relocation Term for two (2) additional periods of five (5) years each (each such additional period  being  herein referred to as the "Optional Extension Term"). Such option to extend (the "Option to Extend") shall be exercised by Tenant giving written notice of the exercise thereof to Landlord not less than twelve (12) months, nor more than fifteen (15) months before the expiration date of the Relocation Term or the first Optional Extension Term, as the case may be. The Optional Extension Term shall be upon the same terms, covenants,  and conditions as set forth in the Lease with respect to the Relocation  Term, except that (a) Landlord shall have no obligation whatsoever to alter, improve or remodel the Relocation Premises and (b) the Basic Rent and Additional Rent, payable during the Optional Extension Term, if exercised, shall equal then-prevailing Fair Market Rental Rate for the Relocation Premises, as defined in Section 12(e) above.  At  any  time  within  fifteen twelve (15) months prior to the expiration date of the Relocation Term or  the  first Optional Extension Term, as the case may be, Tenant may request in writing that Landlord provide Tenant with its determination of the Fair Market Rental Rate for the Relocation Premises which shall apply during the Optional Extension Term and Landlord shall furnish same in writing to Tenant within thiliy (30) days after such request.

 

(b) In connection with the determination of the Fair Market Rental Rate and the exercise by Tenant of the Option to Extend, Landlord and Tenant shall have the rights and obligations described in Section 12(f) and (g) for purposes of the Option to Extend.

 

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(c) Should the Term of the Lease or the first Extension Term, as the case may be, be extended hereunder, Tenant shall, if required by Landlord, execute an amendment modifying the Lease within twenty (20) business days after Landlord presents same to Tenant, which agreement shall set forth the Basic Rent and Additional Rent with respect to Direct Costs for the Extension Term and the other economic terms and provisions in effect during the Extension Term. Should Tenant fail to execute the amendment (which amendment accurately sets f01th the economic terms and provisions in effect during the Extension Term) within twenty (20) business days after presentation of same  by Landlord, time being of the essence, Tenant's right to extend the Term of the Lease or the first Extension Term, as the case may be, shall, at Landlord's sole option, terminate, and Landlord shall be permitted to lease such space to any other person or entity  upon whatever terms and conditions are acceptable to Landlord in its sole discretion.

 

18. Notices. The address for notices to Landlord set forth in Section 30L of the Original Lease is hereby amended by deleting the address for notices  to  Landlord  set  forth therein and substituting the following in lieu thereof:

 

 

TR Deerfield Office LLC

c/o Cornerstone Real Estate Advisers LLC 150 S. Wacker Drive, Suite 350

Chicago, Illinois  60606 Attention:  Asset Manager

 

 

 

And a copy to:

 

Holland & Knight LLP

131 S. Dearborn, 30th Floor Chicago, Illinois 60603 Attention:   James T. Mayer

With a copy to:

TR Deerfield Office LLC

c/o Lincoln Property Company 520 Lake Cook Road Deerfield, Illinois  60015 Attention:  Property Manager

 

 

The address for notices to Tenant set forth in Section 30L of the Original  Lease  is  hereby amended by deleting the address for notices to Tenant set forth therei n and substituting the following in lieu thereof:

 

 

Surgical Care Affiliates, LLC

569 Brookwood Village, Suite 901

Birmingham, Alabama 35209 Attention: Legal Services Department

With a copy to:

Surgical Care Affiliates - 510 Lake Cook Road,

Deerfield, IL

c/o Colliers International-Corporate  Solutions 301 University Avenue, Suite 100

Sacramento, CA  95825 Surgical.Care@colliers.com

 

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19. Brokers. Landlord and Tenant represent and warrant to each other that they have had no dealings with any real estate broker, finder, commissions or other person entitled to compensation for services rendered in connection with the negotiation or execution of this Third Amendment other than Lincoln Property Company Commercial representing Landlord and Colliers International representing Tenant (the "Brokers"). Landlord shall be responsible for the payment of the commissions to the Brokers pursuant to a separate agreement. Landlord and Tenant each agree to defend, indemnify and hold harmless the other from and against any claim for broker's or finder's fees or commissions made by any entity asserting such claim by, through or under it other than the Brokers.

 

20. Counterpart. This Third Amendment may be executed in counterparts, each of which shall constitute an original, and all of which, when taken together, shall constitute one and the same instrument.

 

21. Time is of the Essence. Time is of the essence of this Third Amendment and the Lease and each provision hereof and thereof.

 

22. Submission of Amendment. Submission of this instrument for examination shall not bind Landlord and no duty or obligation on Landlord  shall arise under this instrument until this instrument is signed and delivered by Landlord and Tenant.

 

23. Entire Agreement. This Third Amendment and the Lease contain the entire agreement between Landlord and Tenant with respect to Tenant's leasing  of  the  Premises. Except for the Lease and this Third Amendment, no prior agreements or understandings with respect to the Premises shall be valid or of any force or effect.

 

24. Severabilitv. If any provision of this Third Amendment or  the  application thereof to any person or circumstance is or shall be deemed illegal, invalid or unenforceable, the remaining provisions hereof shall remain in full force and effect and this Third Amendment shall be interpreted as if such i llegal, invalid or unenforceable provision did not exist herein.

 

25. Lease In Full Force and Effect. Except as modified by this Third Amendment, all of the terms, conditions, agreements, covenants, representations, warranties and indemnities contained in the Lease remain in full force and effect.

 

26. Successors and Assigns.  This Third Amendment is binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives,  successors and assigns.

 

27. U.S. Anti-Terrorism Laws and Patriot Act.   Tenant  represents  and warrants to, and covenants with, Landlord that neither Tenant nor any of its respective constituent owners  or affiliates currently are, or shall be at any time during the Term and Extension Term of the Lease, in violation of any laws relating to terrorism  or  money  laundering  (collectively,  the  "Anti­ Terrorism  Laws"),  including  without  limitation  Executive  Order  No.   13224  on   Terrorist Financing, effective September 24, 2001 and relating to Blocking Property and  Prohibiting Transactions With Persons Who Commit, Threaten  to  Commit,  or  Support  Terrorism  (the "Executive  Order")  and/or  the  Uniting  and  Strengthening  America  by  Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (the "USA

 

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Patriot Act"). Tenant covenants with Landlord that neither Tenant nor any of its respective constituent owners or affiliates are or shall be during the Term and Extension Term of the Lease, a "Prohibited Person,"  which is defined as follows: (i) a person or entity that is listed in the Annex to, or is otherwise subject to, the provisions of the Executive Order; (ii) a person or entity owned or controlled by, or acting for or on behalf of, any person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (iii) a person or entity with whom Landlord is prohibited from dealing with or otherwise engaging in any transaction by any Anti-Terrorism Law, including without limitation the Executive Order and the USA Patriot Act; (iv) a person or entity who commits, threatens or conspires to commit or support "terrorism" as defined in Section 3(d) of the Executive Order; (v) a person or entity that is named as  a "specially designated national and blocked person" on the then-most current list published by the

U.S.   Treasury   Department   Office   of   Foreign   Assets   Control   at   its   official   website, ht tp ://w ww .treas.gov/  f fi ces/eo tffc/ofac/  cln /t I I scl n.pdf  or at any replacement  website  or  other replacement official publication of such list; and (vi) a person or entity who is affiliated  with a person or entity listed in items (i) through (v), above. At any time and from time-to-time  during the  Term  and Extension  Term  of the Lease,  Tenant  shall  deliver to Landlord,  within  ten (10) days after receipt of a written request therefor, a written certification or such other  evidence reasonably acceptable to Landlord  evidencing  and  confirming  Tenant's  compliance  with  this Section.

 

28. Integration of the Amendment and the Lease.   This Third  Amendment  and the Lease  shall  be  deemed  to be,  for all purposes,  one  instrument.   In the  event  of  any  conflict between  the terms and provisions  of this Third Amendment  and the terms and provisions of the Lease,  the terms and provisions of this Third Amendment  shall,  in all  instances,  control  and prevail.

 

29. Exculpation. It is understood and agreed expressly by and between the parties hereto, anything herein to the contrary notwithstanding, that each and all of the representations, warranties, covenants, undertakings and agreements made herein or in the Lease on the part of Landlord, while in form purporting to be the representations, warranties, covenants, undertakings and agreements of Landlord, are nevertheless each and every one of them made and intended, not as personal representations, warranties, covenants, undertakings and agreements by Landlord or for the purpose or with the intention of binding Landlord personally, but  are  made  and intended for the purpose only of subjecting Landlord's interest in the Building and the Premises to the terms of this Third Amendment and the Lease and for no other purpose whatsoever, and in case of default hereunder by Landlord, Tenant shall look solely to the interests of Landlord in the Building; that Landlord shall have no personal liability whatsoever to pay any  indebtedness accruing hereunder or to perform any covenant, either express or implied, contained herein; and that no personal liability or personal responsibility of any sort is assumed by, nor shall at any time be asserted or enforceable against, said Landlord, individually or personally, on account of any representation, warranty, covenant, undertaking or agreement of Landlord in this Third Amendment or the Lease contained, either express or implied, all such personal liability, if any, being expressly waived and released by Tenant and by all persons claiming by, through or under Tenant.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

 

 

LANDLORD:

 

TR DEERFIELD OFFICE LLC, a

Delaware limited liability company

 

	
 
	
By:
	
Cornerstone Real Estate Advisers LLC, a Delaware limited liability company, its Manager

TENANT:

 

SURGICAL  CARE AFFILIATES,  LLC, a

Delaware limited liability company

 

 

B

 

 

By:  ______________________________

Name:  ____________________________

Title:  _____________________________

 

 

 

 

 

 

 

18

 

 

 

EXHIBIT A RELOCATION  PREMISES

 

 -

 

 

A-1-1

 

 

 

 

EXHIBIT A-1

TEMPORARY SPACE

 

		
	
FLOO R PLAN

 
	
500

	
Buildi ng 540 I Suite 160 I 3,478 SF

 
	
CORPORATE CENTRE

 

 

 

 

 

 

 

 

 

 

 

A-1-1

 

 

EXHIBIT B 

WORKLETTER

Capitalized terms used herein, unless otherwise defined m this Workletter, shall have the respective meanings assigned to them in the Lease. To the extent any of the terms and conditioned contained herein conflict with the terms and conditions of the Lease, the terms and conditions of this Workletter shall prevail.

 

For and in consideration of the mutual agreements and covenants contained herein and in the Lease, Landlord and Tenant hereby agree as follows:

 

1. Landlord's Work. Landlord agrees that, following the Execution  Date, Landlord, at its sole cost and expense, shall (i) confirm that all windows and patio doors within the Relocation Premises are functioning properly and sealed, (ii) confirm that  the  adjacent exterior patios are in good order and repair, and (iii) confirm that all mini blinds are in good order and repair ("Landlord's Work"). In connection with Landlord's Work, Landlord shall use Building Standard (as hereinafter defined) materials and methods, except as otherwise agreed to in writing by Landlord and Tenant. "Building Standard",  as  used  herein,  shall  mean  those brands, materials, finishes, techniques and methods selected by Landlord for the completion of Landlord's Work. In connection with Landlord's Work, Landlord  and Tenant acknowledge and agree that (i) Landlord's Work may be performed at the same time as Tenant's Work and (ii) Landlord and Tenant and their contractors' shall take reasonable commercial efforts to cooperate with each other in connection therewith.

 

2. Tenant's Work. Tenant, at its cost and expense, subject  to application of the Improvement Allowance (as defined in Paragraph 4(b) hereof), shall perform or cause  to be performed certain work ("Tenant's Work") in the Relocation Premises provided  for in the Plans (as defined in Paragraph 3 hereof) submitted to and approved by Landlord. As part of Tenant's Work, Tenant shall demise the Relocation Premises from the other areas of the fourth (4th) floor so as to create a multi-tenant corridor adjacent thereto. Further, as part of Tenant's Work, to the extent required,  Tenant shall (i) demise any other tenants'  space from the Relocation  Premises,

(ii)provide the necessary meter banks,  (iii) separate the building HVAC system and any other building systems that serve the Relocation Premises such that such systems do not  serve any other tenants' space or the common areas, and (iv) refurbish the restrooms on the fourth (4th) floor (north wing) of the Building in accordance with the Plans, which  refurbished  restrooms shall be in compliance with the ADA. Tenant's Work shall be constructed in a good and workmanlike fashion, in accordance with the requirements set forth herein  and  in compliance with all applicable laws, ordinances, rules and other governmental requirements. Tenant shall commence the construction of Tenant's Work promptly following completion of the preconstruction activities provided for in Paragraph 3 below and shall diligently proceed with all such construction. Tenant shall coordinate  Tenant's  Work  so  as  avoid  interference  with  any other work being performed by or on behalf of Landlord and other tenants at the Building.

 

B-1

 

 

 

3. Preconstruction Activities.

 

(a) Prior to the commencement of Tenant's Work, Tenant shall submit the following information and items to Landlord for Landlord's reasonable review and approval:

 

(i) a detailed construction schedule containing the major components of Tenant's Work and the time required for each, including the scheduled commencement date of construction of Tenant's Work, milestone dates and the estimated date of completion of construction;

 

(ii) an itemized statement of the estimated construction cost, including permits and architectural and engineering fees;

 

(iii) the names and addresses of Tenant's contractors (including the general contractor and such contractors' subcontractors) including any project/construction manager to oversee the construction process to be engaged by Tenant for Tenant's Work ("Tenant's Contractors"). The general  contractor shall be selected by Tenant, subject to Landlord's  reasonable approval as hereinafter provided. Landlord has the right to approve or disapprove Tenant's Contractors. Tenant shall not employ as Tenant's Contractors any persons  or  entities disapproved by Landlord. If Landlord has affirmatively approved only certain contractor(s) and/or subcontractor(s) from Tenant's list, Tenant shall employ as Tenant's Contractors only those persons or entities so approved. Landlord may, at its election, designate a list of approved contractors for performance of  work involving mechanical, electrical, plumbing or life-safety systems, from which Tenant must select  its contractors for such work. If Tenant  does not use Kent (Landlord's mechanical, electrical and plumbing engineer) or Landlord's  life­ safety contractor, then Tenant shall also be responsible for Landlord's costs and expenses payable to such third parties in connection with Landlord's review of the Plans and rights and responsibilities under this Workletter, which costs shall be deemed to be Construction Costs. Tenant shall let and hold the  construction contracts with Tenant's Contractors. In connection with the foregoing, Landlord hereby approves as Tenant's Contractors: Bear  Construction,  Interior Construction  Group and Leopardo Construction;

 

(iv) certified copies of insurance policies or certificates of insurance as hereinafter described. Tenant shall not permit Tenant's Contractors to commence work until the required insurance has been obtained and certified copies of policies or certificates have been delivered to Landlord; and

 

(v) the Plans for Tenant's Work, which Plans shall be subject to Landlord's reasonable approval in accordance with Paragraph 3(c) below.

 

(b) Tenant will update such information and items by notice to Landlord of any changes.

 

B-2

 

 

 

(c) As used herein, the term "Plans" shall mean full and detailed architectural and engineering plans and specifications covering Tenant's Work (including, without limitation, architectural, mechanical and electrical working drawings for Tenant's Work). The Plans shall be subject to Landlord's reasonable approval and the approval of all local governmental authorities requiring approval, if any and shall be in CAD format. Landlord shall give its approval or disapproval (giving general reasons in case of disapproval) of the Plans within five (5) business days after receipt thereof by Landlord. Landlord agrees not to unreasonably withhold its approval of said Plans; provided, however, that Landlord shall not be deemed to have acted unreasonably if it withholds it consent because, in Landlord's opinion: (i) Tenant's Work is likely to affect adversely Building systems, telecommunications or data transmission equipment or systems, the structure of the Building or the safety of the Building and its occupants, including possible disturbance of any Hazardous Materials; (ii) Tenant's Work would adversely affect Landlord's ability to furnish services to Tenant or other tenants; (iii) Tenant's Work would increase the cost of operating the Building; (iv) Tenant's Work would violate any Laws; (v) Tenant's Work contains or uses Hazardous Materials; (vi) Tenant's Work would adversely affect the appearance of the Building; or (vii) Tenant's Work would adversely affect another tenant's premises. The foregoing reasons, however, shall not be exclusive of the reasons for which Landlord may withhold consent, whether or not such other reasons are similar to or dissimilar from the foregoing. Landlord shall cooperate with Tenant by discussing or reviewing preliminary plans and specifications, at Tenant's request prior to completion of the full, final detailed Plans, in order to expedite preparation of the final Plans and the approval process. If Landlord notifies Tenant that changes are required to the final Plans submitted by Tenant, Tenant shall, within five (5) business days thereafter, submit to Landlord for its approval the Plans as amended in accordance with the changes so required. The Plans shall also be revised, and Tenant's Work shall be changed, to incorporate any work required in the Relocation Premises by any local governmental field inspector. Landlord shall, within five (5) business days, give its approval or disapproval (giving general reasons in case of disapproval) of Tenant's revisions to the final Plans. Landlord's approval of the Plans shall in no way be deemed to be a representation or warranty of Landlord that such Plans are adequate for any use or comply with any applicable laws, ordinances or regulations or other governmental requirements; or be deemed to be an acceptance or approval of any element therein contained which is in violation of any applicable laws, ordinances, regulations or other governmental requirements.

 

(d) No Work shall be undertaken  or commenced by Tenant in the Relocation Premises until:

 

(i) the Plans have been submitted to and approved by Landlord;

 

(ii) all necessary building permits have been obtained by Tenant;

 

(iii) all required insurance coverages have been obtained by Tenant, but failure of Landlord to receive evidence of such coverage upon commencement of Tenant's Work shall not waive Tenant's obligations to obtain such coverages; and

 

B-3

 

 

 

(iv) items required to be submitted to Landlord prior to commencement of construction of Tenant's Work have been so submitted and have  been approved, where required.

 

4. Cost of Tenant's Work.

 

(a) Construction  Costs.    All  costs  of  design  and  construction  of  Tenant's Work, including, without limitation, the costs of all  space  planning,   architectural, engineering and mechanical systems planning related thereto, all   governmental and quasi-governmental approvals (including ADA and fire and safety approvals) and permits required therefor, all direct and indirect construction costs, including materials and labor, project management, insurance, bonds and  other   requirements and a construction management fee payable to Landlord as provided in Paragraph 4(e) below (collectively, "Construction Costs"), shall be paid by Tenant, subject, however, to the application of the Improvement  Allowance  described  in  Paragraph  4(b)  below,  not previously  disbursed pursuant to this Workletter (the "Available  Allowance").

 

(b) Improvement Allowance. Provided that Tenant is not then in default under this Workletter or the Lease beyond the expiration of any applicable notice and grace periods, Landlord agrees to provide to Tenant an allowance (the "Improvement Allowance") in the amount of One Million Four Hundred Forty-Five  Thousand Six Hundred Eighty Dollars ($1,445,680.00) representing approximately Fifty and 89/100 Dollars ($50.89) per rentable square foot of the Relocation Premises, to be applied to the Construction Costs. If the costs of Tenant's Work exceeds the Improvement Allowance, Tenant solely shall have responsibility for the payment of such Excess Costs (as hereinafter defined). The Construction Costs shall be paid by Landlord to the extent of, and shall be deducted by Landlord from, the Available Allowance, as provided in Paragraph 4(c) below. Any unused portion of the Improvement Allowance that is not expended or applied towards Construction Costs in accordance with the terms hereof on or before March 31, 2017 will be deemed waived by Tenant and Landlord shall have no further obligation with respect thereto.

 

(c) Procedure for Payment.

 

(i) Periodically after completion of a portion of Tenant's Work, and no more than one time in any consecutive thirty (30) day period, Tenant may submit to Landlord a payment request (the "Payment Request") for the Construction Costs of Tenant's Work incurred and not previously paid by Landlord and the respective amounts of such payments, which Payment Request shall be accompanied by the following (collectively referred to as the "Accompanying  Documentation"):

 

(A) a statement in writing under oath signed by Tenant and Tenant's architect or project manager stating the various contracts entered into by Tenant for Tenant's Work and with respect to each: the  total contract price of all labor, work, services and materials; the amounts theretofore    paid    thereon;    the    amount    requested    for   the    current

 

B-4

 

 

 

disbursement; the balance due for such  labor,  work,  services  and materials, after payment of the current disbursement, to complete Tenant's Work in accordance with the final Plans and the percentage of the Excess Costs incurred and paid for by Tenant with respect to Tenant's Work as of the date of the Payment Request (the "Excess Cost Percentage");

 

(B) a written application for payment from each of Tenant's contractors disclosed in the aforesaid sworn Tenant's  statement  wherein each of Tenant's contractors certifies completion and the cost of that particular portion of Tenant's Work for which payment is requested and further certifies that the cost to complete Tenant's Work remaining to be done under said contract will not exceed the balance due thereunder (without including in such balance any required retainages);

 

(C) all applications for payment to Tenant's architect and certificate for payment executed by Tenant's  architect  on  American Institute of Architect's form G-702 and G-703;

 

(D) originals of partial waivers of lien from each of Tenant's contractors and all materialmen and vendors requesting payment covering such requested payment; and

 

(E) such other documentation reasonably  requested  by Landlord that is reasonably and customarily required by landlords or lenders in  connection with tenant improvement work  performed  by tenants.

 

(ii) Landlord will approve or disapprove  the Accompanying Documentation within ten (10) business days of Landlord's receipt thereof. If Landlord disapproves any of the Accompanying Documentation, Landlord shall notify Tenant of the reason therefor.  If disapproved by the Landlord, Tenant shall then revise and resubmit such documentation. Thereafter, to the extent such documentation  is approved  or resubmitted  by Tenant  and then approved  by Landlord, payment shall be made within thirty (30) days following receipt by Landlord of the Payment Request and the approved Accompanying Documentation.  In connection with such Payment Request, Landlord shall pay the  amount  of  the  payment  request  up  to  the  amount  of  the  Improvement Allowance.  Notwithstanding  the  foregoing  or  any  other  provision  hereof, Landlord  shall  only  pay  such  Payment  Request  to  the  extent  approved  by Landlord as provided herein and then only up to (x) the amount of that percentage of the Improvement Allowance, which is the same percentage as Tenant's then Excess Cost Percentage, such that Tenant and Landlord shall, respectively, pay for  the  Construction  Costs  (for  Landlord  only  up  to  the  amount  of  the Improvement Allowance) on a "pari passu" basis and (y) the amount of  ninety percent (90%) of the Improvement Allowance; provided that the remaining ten percent (10%) of the Improvement Allowance shall be retained by Landlord and

 

B-5

 

 

 

shall only be paid upon Tenant's compliance with the requirements of Section 4(c)(iii) below (the "Retainage").

 

(iii) Upon completion of Tenant's Work, Tenant shall furnish Landlord with evidence reasonably satisfactory to Landlord that all of Tenant's Work has been completed, and paid for, which evidence shall include the Accompanying Documentation set forth above, full scale copies of the final "as-built" plans, detailed breakdown of the total costs of Tenant's Work and final waivers of liens and contractors' affidavits, in such form as may be reasonably required by Landlord, from all parties performing labor or supplying materials or services in connection with Tenant's Work showing that all of said parties have been compensated in full and waiving all liens in connection with the Relocation Premises and the Building. Landlord will approve or  disapprove the Accompanying Documentation within ten (10) business days of Landlord's receipt thereof. If Landlord disapproves any of the Accompanying Documentation, Landlord shall notify Tenant of the reason therefor. If disapproved by the Landlord, Tenant shall then revise and resubmit such documentation. Thereafter, to the extent such documentation is approved or resubmitted by Tenant and then approved by Landlord, payment shall be made within thirty (30) days following receipt by Landlord of the Payment Request and the approved Accompanying Documentation. In connection with such Payment Request, Landlord shall pay the amount of the payment request up to the amount of the Improvement Allowance. Until Landlord has received all of the documentation described in this Section, Landlord shall have no obligation to disburse any portion of the Retainage to Tenant or Tenant's contractors.

 

(d) Excess Costs. In the event that the Construction Costs exceed the Improvement Allowance (the "Excess Costs"), all of the Excess Costs outstanding upon exhaustion of the Improvement Allowance shall be borne exclusively by Tenant and Tenant agrees to indemnify Landlord from and against any Excess Costs. All amounts payable by Tenant pursuant to this Workletter shall be deemed to be Additional Rent for purposes of the Lease. In connection with the Excess Costs, Tenant shall deposit with Landlord the Letter of Credit as hereinafter defined. Within three (3) business days of the receipt by Tenant of permits from the local governmental authority which allow Tenant to commence the performance of Tenant's Work, and subject to the terms and conditions set forth in this Paragraph, Tenant shall as security for the performance of Tenant's obligations under this Workletter, cause to be delivered via overnight delivery or other verifiable means to Landlord directly from the issuer thereof an unconditional, standby and irrevocable letter of credit (such letter of credit and any amendment or replacement thereof is defined herein as the "Letter of Credit") in favor of Landlord and its successors and assigns, in the amount of One Million Four Hundred Thousand Dollars ($1,400,000.00). The Letter of Credit hereunder and any replacement shall expire no earlier than October 31, 2016, provided that on or before said date (i) Tenant's Work has been completed by said date, (ii) the Excess Costs have been paid for by Tenant, and (iii) the requirements set forth in Section 4(c)(iii) above have been satisfied ("Tenant's Work Completion Date").  In the event that Tenant's Work Completion Date has not occurred

 

B-6

 

 

 

by October 31, 2016, then Tenant shall deliver to Landlord in accordance with the procedures described herein, a replacement Letter of Credit in the amount of the Excess Costs then remaining as of said date which have not met the requirements of  the foregoing sentence, such replacement Letter of Credit to continue until said requirements have been satisfied. Tenant shall ensure that, at all times after the delivery to Landlord of the Letter of Credit and through Tenant's Work Completion Date, an unexpired Letter of Credit shall be in the possession of Landlord. Failure by Tenant  to  so  cause to  be delivered to Landlord as described herein any replacement Letter of Credit shall entitle Landlord to draw on the then outstanding Letter of Credit and retain the entire proceeds thereof as part of the Letter of Credit under this Lease unless and until Tenant provides Landlord with the required replacement Letter of Credit. The Letter of Credit shall be in form and substance reasonably satisfactory to Landlord. The form of the Letter of Credit attached hereto as Exhibit E is satisfactory to Landlord. If the form of Letter of Credit normally issued by Tenant's financial institution is different than the form of Letter of Credit attached hereto as Exhibit E, Landlord's approval thereof shall not be reasonably withheld provided that such letter of credit is consistent with the terms stated in this Paragraph. Tenant shall bear all costs and expenses related to maintaining the Letter of Credit, including the fees of the financial institution that issues  the  Letter  of  Credit. Tenant shall pay for Tenant's Work when required under its contracts for Tenant's Work and shall not permit the Relocation Premises or the Building to become subject to any lien on account of labor, material or services furnished to Tenant. If Tenant fails to pay for Tenant's Work when due and as a result, or otherwise any mechanics' lien is filed in connection with Tenant's Work, then, upon ten (10) business days' prior notice to Tenant and following Tenant's failure to pay or file a bond over such lien within such 10-day period, Landlord may draw against the Letter of Credit such amounts as necessary to pay for that portion of Tenant's Work which Tenant has failed to remove or bond over the lien. Landlord agrees that in the event Tenant has bonded over the lien due to a dispute, Landlord shall not have the right to draw against the Letter of Credit for such amounts in dispute. Except as set forth above, Landlord may draw upon  the  Letter  of  Credit,  in whole or in part, and use all or  any part of the draw on the Letter of Credit for the payment of Tenant's Work, including any Excess Costs or other amounts which Landlord may pay or become obligated to pay by reason of such failure, or to compensate Landlord for any loss or damage which Landlord may suffer by reason of such failure. If the Letter of Credit is drawn upon, in whole or in part, Tenant shall within  ten  (10) days after written demand therefore restore the Letter of Credit to the amount of Excess Costs remaining. Landlord shall not be required to keep the cash proceeds of any draw on the Letter of Credit separate from its general funds, and Tenant shall  not  be  entitled  to interest on such cash proceeds. In no event shall the cash proceeds of any draw on the Letter of Credit be considered an advance payment of rent, and in no event shall Tenant be entitled to use such cash proceeds for the payment of rent. The Letter of Credit (or any balance thereof as reduced by any draw thereunder) shall be returned to Tenant within five (5) business days after Tenant's Work Completion Date.

 

(e) Construction   Ma nagement   Fee.   Within ten  (10) days following the date of an invoice, Tenant shall, for supervision and administration of the construction  and installation of Tenant's Work, pay Landlord a construction management fee equal to one percent   (1%)  of  the  hard  Construction   Costs  for  Tenant's  Work,  being  the  costs  of

 

B-7

 

 

materials and labor, which may be paid from the unused portion of the Improvement Allowance (if any).

 

5. Change Orders. All changes to the final Plans requested by Tenant must be approved by Landlord in advance of the implementation of such changes as part of Tenant's Work.

 

6. Standards of Design and Construction and Conditions of Tenant's Performance. All  work  done  in  or  upon  the  Relocation  Premises  by  Tenant  shall  be done according to the standards set forth in this Paragraph, except as the same may be modified in the Plans approved by or on behalf of Landlord and Tenant.

 

(a) Tenant's Plans and all design and construction of Tenant's Work shall comply with all applicable statutes, ordinances, regulations, laws, codes and industry standards, including, but not limited to, requirements of Landlord's fire insurance underwriters. Approval by Landlord of the Plans shall not constitute a waiver of this requirement or assumption by Landlord of responsibility for compliance. Where several sets of the foregoing laws, codes and standards must be met, the strictest shall apply where not prohibited by another law, code or standard or an equivalent thereof.

 

(b) Tenant shall obtain, at its own cost and expense, all required  building permits and, when construction has been completed, shall obtain, at its own cost and expense, an occupancy permit for the Relocation Premises, if any, to the extent required, copies of which permits shall be delivered to Landlord.

 

(c) Tenant's Contractors shall be licensed contractors, possessing good labor relations, capable of performing quality workmanship and working in harmony with Landlord's contractors and subcontractors and with other contractors and subcontractors in the Building. All work shall be coordinated with any other construction or other work in the Building in order not to affect adversely construction work being performed by or for Landlord or its tenants, it being understood that, in the event of any conflict, Landlord and its contractors and subcontractors shall have priority over Tenant and Tenant's Contractors.

 

(d) Landlord shall have the right, but not the obligation, to perform on behalf of and for the account of Tenant, subject to reimbursement by Tenant, any work (i) which Landlord reasonably deems to be necessary on an emergency basis, (ii) which pertains to structural  components, building  systems or the general  utility  systems for the Building,

(iii) which pertains  to the erection of temporary safety barricades or signs during construction, or (iv) which pertains to patching of Tenant's Work and other work in the Building.

 

(e) Tenant shall use only new, first-class materials in Tenant's Work, except where explicitly shown otherwise in the Plans approved by Landlord and Tenant. Tenant shall obtain warranties of at least one (1) year's duration from the completion of Tenant's Work against defects in workmanship and  materials on all work  performed  and equipment  installed  in the Relocation  Premises as part of Tenant's Work.   Tenant  shall

 

B-8

 

 

not knowingly permit any liens to be filed in connection with Tenant's Work against the Relocation Premises or the Building.

 

(f) Tenant and Tenant's Contractors, in performing work, shall not interfere with other tenants and occupants of the Building. Tenant and Tenant's Contractors shall make all efforts and take all steps appropriate to construction activities undertaken in a fully occupied, first-class office building so as not to interfere with the operation of the Building and shall, in any event, comply with all reasonable rules  and  regulations existing from time to time at the Building. Tenant and Tenant's Contractors shall take all precautionary steps to minimize dust, noise and construction traffic and to protect their facilities and the facilities of others affected by Tenant's Work and to properly police same. Construction equipment and materials are to be kept within the Relocation Premises, and delivery and loading of equipment and materials shall be done at such locations and at such time as Landlord shall reasonably direct so as not to burden the construction or operation of the Building.

 

(g) Landlord shall have the right to order Tenant or any  of  Tenant's Contractors who violate the requirements imposed on Tenant or Tenant's Contractors in performing work to cease work and remove its equipment and employees from the Building.

 

(h) Charges for any service relating to Tenant's Work (including hoisting and the like) shall be the responsibility of Tenant and shall be paid for by Tenant at Landlord's rates; provided that during the period of construction of  Tenant's  Work Tenant shall not be charged for the use of the freight elevator, nor  for utilities. With respect to hoisting, the Building does not have any charges  for  hoisting,  except  that Tenant shall pay for labor charges for the Building engineer to supervise the hoisting, which charges on an overtime basis are billed at $105 per hour. Tenant will be responsible to pay for the associated Village permit fees for the crane, costs of any repairs and restoration as a result of any damage to landscaping of the Building  or  to  the Building and any trades associated with window removal, etc. Tenant shall have the right to use the freight elevators of the Building after business hours, subject to scheduling by Landlord. Tenant shall arrange and pay for removal of construction debris and shall not place debris in the Building's waste containers.

 

(i) Tenant shall permit access to the Relocation Premises, and Tenant's Work shall be subject to inspection, by Landlord and  Landlord's  architects,  engineers, contractors and other representatives at all reasonable times during the period in which Tenant's Work is being constructed and installed and following completion of Tenant's Work.

 

(j) Tenant shall notify Landlord upon completion of Tenant's Work and shall furnish Landlord with such further documentation as may be necessary under Paragraph 3(c) above.

 

(k) Tenant shall have no authority to deviate from the Plans in performance of Tenant's  Work,  except  as authorized  by  Landlord  and  its  designated  representative  in

 

B-9

 

wntmg.  Tenant shall furnish to Land lord "as-built" drawings of Tenant's Work within fifteen (15) business days after completion of Tenant's Work.

 

(I) Provided the same will not adversely interfere with Tenant's construction activities in the Relocation Premises, nor Tenant's use and occupancy of the Relocation Premises, Landlord shall have the right to run utility lines, pipes, conduits, duct work and component parts of all mechanical and electrical systems where necessary or desirable through the Relocation Premises, to repair, alter, replace or remove the same, and to require Tenant to install and maintain proper access panels thereto.

 

(m) Tenant shall impose on and enforce all applicable terms of this Workletter Agreement against Tenant's architect and Tenant's Contractors.

 

7. Insurance  and  Indemnification.    In addition  to any insurance  which  may  be required under the Lease, Tenant shall secure, pay for and maintain or cause Tenant's Contractors to secure, pay for and maintain during the continuance of construction and fixturing work within the Building or Relocation Premises, insurance in the following minimum  coverages and limits of liability:

 

(i) Workers' compensation and employers' liability insurance with limits of not less than $500,000.00, or such higher amounts as may be required from time to time by any employee benefit acts or other statutes applicable where Tenant's Work is to be performed, and in any event sufficient to protect Tenant's Contractors from liability under the aforementioned acts;

 

(ii) comprehensive or commercial general liability insurance (including   contractors'   protective   liability)   in   an   amount   not   less  than

$3,000,000.00 combined single limit, whether involving bodily injury liability (or death resulting therefrom) or property damage liability or a combination thereof. Such insurance shall provide for explosion and collapse, completed operations coverage and broad form blanket contractual liability coverage and shall insure Tenant's Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others and arising from its operations under the contracts whether such operations are performed by Tenant's Contractors or by anyone directly or indirectly employed by any of them;

 

(iii) "special form" builder's risk insurance upon the entire Work to the full insurable value thereof. This insurance shall include the interests of Landlord and Tenant (and their respective contractors and subcontractors of any tier to the extent of any insurable interest therein) in Tenant's Work and shall insure against the perils of fire and extended coverage and shall include "all risk" builder's risk insurance for physical loss or damage including, without duplication of coverage, theft, vandalism and malicious mischief. Ifportions of Tenant's Work are stored off the site of the Building or in transit to said site are not covered under said "all risk" builder's risk insurance, then Tenant shall effect and maintain similar property insurance on such portions of Tenant's Work. Any loss insured under said "all risk" builder's risk insurance is to be adjusted with Landlord and Tenant

 

B-10

 

 

and made payable to Landlord  as trustee for the insureds, as their interests may appear.

 

All pol icies (except Tenant's workers' compensation policy) shall be endorsed to include as additional insured parties Landlord and its beneficiaries, their partners, directors, officers, employees and agents, Landlord's contractors, Landlord's architects, and such additional persons as Landlord may designate. The waiver of subrogation provisions contained in the Lease shall apply to all insurance policies (except Tenant's workers' compensation policy) to be obtained by Tenant pursuant to this Paragraph. The insurance policy endorsements shall also provide that all additional insured parties shall be given thirty (30) days' prior written notice of any reduction, cancellation or nonrenewal of coverage (except that ten (10) days' notice shall be sufficient in the case of cancellation for nonpayment of premium) and shall provide that the insurance coverage afforded to the additional insured parties thereunder shall be primary to any insurance carried independently by said  additional insured parties.  Additionally,  where  applicable,  each policy shall contain a cross-liability and severability of interest clause.

 

Without limitation of the indemnification provisions contained in the Lease, to the fullest extent permitted by law Tenant agrees to indemnify, protect, defend and hold harmless Landlord, Landlord's contractors and Landlord's architects and their partners, directors, officers, employees and agents, from and against all claims, liabilities, losses, damages and expenses of whatever nature arising out of or in connection with Tenant's Work or the entry of Tenant or Tenant's Contractors into the Building and the Relocation Premises, including, without limitation, mechanics' liens or the cost of any repairs to the Relocation Premises or Building necessitated by activities of Tenant or Tenant's Contractors and bodily injury to persons (including, to the maximum extent provided by law, claims arising under the Illinois Structural Work Act) or damage to the property of Tenant, its employees, agents, invitees or licensees or others. It is understood and agreed  that the foregoing indemnity shall be in addition to the insurance requirements set forth above and shall not be in discharge of or in substitution for same or any other indemnity or insurance provision of the Lease.

 

8. Miscellaneous.

 

(a) Except as expressly set forth herein or the Lease, Landlord has no agreement with Tenant and has no obligation to do any work with respect to the Relocation  Premises.

 

(b) If Tenant fails to make any payment relating to Tenant's Work as required hereunder, Landlord, at its option, may complete Tenant's Work pursuant to the approved Plans and continue to hold Tenant liable for the costs thereof and all other costs due to Landlord. Tenant's failure to pay any amounts owed by Tenant hereunder when due or Tenant's failure to perform its obligations hereunder shall also constitute a default under the Lease, and Landlord shall have all the rights and remedies granted to Landlord under the Lease for nonpayment of any amounts owed thereunder or failure by  Tenant  to perform  its obligations thereunder.

 

(c)  Notices under this Workletter shall be given in the same manner as under the Lease.

 

 

 

B-11

 

 

 

(d) The liability of Landlord hereunder or under any amendment hereto or any instrument or document executed in connection  herewith (including, without limitation, the Lease) shall be limited to and enforceable solely against Landlord's interest in the Building.

 

(e) The headings set forth herein are for convenience only.

 

(f) Tenant's Work shall be deemed to be "Substantially Complete" for all purposes under this Workletter and Section 2(b) of the Third Amendment on the date Tenant substantially  completes Tenant's Work in accordance with the Plans, except for those minor incomplete items that do not materially interfere with Tenant's use and occupancy of the Relocation Premises (as determined by Landlord's architect). Iffor any reason Tenant's Work is not Substantially Completed by the scheduled Relocation Commencement Date described in Section 2(b), Landlord shall not be liable  for  any claims, damages or liabilities in connection therewith or by reason thereof, nor shall the same make the Third Amendment void or voidable.

 

(g) This Workletter sets forth the entire agreement of Tenant and Landlord regarding Tenant's Work. This Workletter may only be amended if in writing and duly exee,:uted by both Landlord and Tenant.

 

 

C-12

 

 

 

EXHIBIT C

 

DECLARATION OF THE RELOCATION COMMENCEMENT DATE

 

This Declaration of the Relocation Commencement Date is made as of --------·' 201_,  by  TR  DEERFIELD   OFFICE  LLC,  a  Delaware   limited       liability company ("Landlord"), and SURGICAL CARE AFFILIATES, LLC, a Delaware limited liability company ("Tenant"), who agree as follows:

 

1. Landlord and Tenant entered into that certain Standard Office Lease dated as of May 10, 2010 (the "Original Lease"), as amended by that certain First Amendment to Lease dated April 13, 2011  (the "First Amendment"), as further amended by that certain Second Amendment to Lease dated August 22, 2013 (the "Second Amendment") and as further amended by that certain Third   Amendment   to   Office   Lease   dated2016 (the "Third Amendment,", collectively the "Lease") under which Landlord demised to Tenant the premises containing 7,526 rentable square feet located in Suites 250 and 255 on the second (2nd) floor (the "Existing Premises") of the building located at 520 Lake Cook Road, Deerfield, Illinois and, in addition thereto, premises containing approximately 28,410 rentable square feet located  in Suite 410 on the fourth (4th) floor (the "Relocation Premises") of the building located at 510 Lake Cook Road, Deerfield, Illinois as more particularly set forth in the Lease. All capitalized terms herein are as defined in the Lease.

 

2. Pursuant to the Lease, Landlord and Tenant agreed to and do hereby confirm the following matters as of the Relocation  Commencement Date of the Relocation Term:

 

	
 
	
a.
	
the Relocation Delivery Date of the Lease is             2016; 

	
 
	
b.
	
the Relocation Commencement Date of the Lease is            ,· 2016;

 

	
 
	
c.
	
the Relocation Expiration Date of the Lease is          .

 

	
 
	
d.
	
the Give Back Date of the Existing Premises under the Lease is         , 2016; and

 

	
 
	
e.
	
the surrender date for the Temporary Space under the Lease is          , 2016.

 

	
 
	
3.
	
Tenant confirms that:

 

	
 
	
a.
	
it has accepted possession of the Relocation Premises as provided  in the Lease;

 

	
 
	
b.
	
Landlord has fulfilled all of its obligations under the Lease as of the date hereof; the Lease is in full force and effect and has not been modified, altered, or amended, except as follows:                     ; and
	
 

 

	
 
	
c.
	
there are no set-offs or credits against Rent, and no Security Deposit  or prepaid Rent has been paid except as provided by the Lease.
	
 

 

 

C-1

 

 

4. The provisions of this Declaration  of Relocation Commencement Date shall inure to the benefit of, or bind, as the case may require, the parties and their respective  successors  and assigns, and to all mortgagees of the Building, subject to the restrictions on assignment and subleasing contained in the Lease, and are hereby attached to and made a part of this Lease.

 

 

LANDLORD:

 

TR DEERFIELD OFFICE LLC,

a Delaware limited liability company

 

	
 
	
By:
	
Cornerstone Real Estate Advisers LLC, a Delaware limited liability company, its Manager
	
 

 

 

 

 

 

TENANT:

 

SURGICAL CARE AFFILIATES, LLC, a

Delaware limited liability company

 

 

 

C-2

 

 

 

EXHIBIT D

 

		
	
This instrument was prepared by and after recording should be returned to:

 

Voya Investment Management LLC

 

5780 Powers Ferry Road N.W., Suite 300

Atlanta, Georgia 30327

Attention: Real Estate Legal Department

 
	

 

 

 

SUBORDINATION, NON-DISTURBANCE  AND ATTORNMENT   AGREEMENT

 

 

This Subordination, Non-Disturbance and Attornment Agreement (this "Agreement"), dated the _ day of, 2016, is executed by and among Voya Insurance and Annuity Company, an Iowa corporation, with its principal office at c/o Voya Investment Management LLC, 5780 Powers Ferry Road, NW, Suite 300, Atlanta, Georgia 30327 (the "Lender"); Surgical Care Affiliates, LLC, a Delaware limited liability company, with its· principal office at 569 Brookwood Village, Suite 901, Birmingham, Alabama, 35209 (the "Tenant"); and TR Deerfield Office LLC, a Delaware limited liability company, with its principal office at c/o Cornerstone Real Estate Advisers LLC, 150 S. Wacker Dr. Suite 350, Chicago, IL 60606 (the "Borrower" and/or the "Landlord").

 

RECITALS

 

WHEREAS, Tenant has entered into a certain Standard Office Lease dated as of May 10, 2010, as amended by that certain First Amendment to Lease dated April 13, 2011, as further amended by that certain Second Amendment to Lease dated August 22, 2013 and as further amended  by  that  certain  Third  Amendment   to  Office  Lease  dated2016 (collectively the "Lease") with Borrower covering certain premises containing approximately 7,526 rentable square feet designated  as Suites 250 and 255 on the second (2nd) floor (the "Existing Premises") of the building located at 520 Lake Cook Road, Deerfield, Illinois and, in addition thereto, premises containing approximately 28,410 rentable square feet located in Suite 410 on the fourth (41h) floor (the "Relocation Premises") of the building located at 510 Lake

 

D-1

 

 

 

Cook Road, Deerfield, Illinois (collectively, the "Premises"), and commonly known as Corporate500 Centre and being more particularly described on Exhibit A attached hereto (the "Property").

 

WHEREAS, Borrower has granted a first lien interest in the Property and the Premises to Lender by delivery of that certain Mortgage, Security Agreement, Financing  Statement  and Fixture Filing dated August 27, 2015 and recorded in the Land Records of Lake County, State of Illinois on August 28, 2015 as File No. 7226338 (the "Mortgage") and an Assignment of Rents and Leases dated August 27, 2015 and recorded in the Land Records of Lake County, State of Illinois on August 28, 2015 as File No. 7226339 (the "Assignment") .

 

WHEREAS, Tenant desires to be assured of continued possession of the Premises under the terms of the Lease and subject to this Agreement and the terms of the Mortgage and the Assignment.

 

NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) by each party in hand paid to the other, the receipt of which is hereby acknowledged, ahd in consideration of the mutual promises, covenants, and agreements herein contained, the parties hereto, intnding to be legally bound hereby, promise, covenant and agree as follows:

 

1. Subordination. Subject to the terms and conditions of this Agreement, the Lease and all estates, liens and charges therein contained or created thereunder is and shall be subject and subordinate to the lien and effect of the Mortgage and to all renewals, modifications, consolidations, replacements and extensions thereof, to the full extent of the indebtedness secured thereby.

 

2. Non-Disturbance. In the event Lender takes possession of the Property by a foreclosure of the Mortgage, or takes a deed in lieu of foreclosure, Lender agrees not to affect or disturb Tenant's right to possession of the Premises in the exercise of Lender's rights so long as Tenant is not in default under any of the terms, covenants or conditions of the Lease beyond any applicable notice and cure or grace periods and provided Tenant has not commenced a voluntary case under the Federal Bankruptcy Code, had an order for relief in an involuntary case entered against it or taken any action for the purpose of taking advantage of any law relating to the relief of debtors.

 

3. Attornment.  Tenant hereby agrees that in the event of a foreclosure sale or deed in lieu of foreclosure under the Mortgage, Tenant will and hereby does attom to the foreclosure successor so that the Lease and the relationship of Landlord and Tenant shall exist between such  foreclosure successor and Tenant; provided, however, that if the foreclosure successor is Lender, its successor or assigns, Lender shall not be:

 

	
 
	
a.
	
liable for any act or omission of any prior landlord (including the Borrower), except with respect to defaults continuing on the date that such Lender succeeded to Landlord's interest under the Lease, in each case to the extent such Lender received prior written notice detailing such default(s) and an opportunity to cure same pursuant to Section 6 hereof; or
	
 

 

D-2

 

 

	
 
	
b.
	
subject to any offsets or defenses which Tenant might have against any prior landlord (including the Borrower), except with respect to defaults continuing on the date that such Lender succeeded to Landlord's interest under the Lease, in each case to the extent such Lender received prior written notice detailing such default(s) and an opportunity to cure same pursuant to Section 6 hereof; Lender acknowledges that its exclusion from liability, offset and defenses set forth in (a) and (b) above shall not apply to actions or omissions of Lender from and after the date it becomes the foreclosure successor; or
	
 

 

	
 
	
c.
	
bound by any rent or additional rent which Tenant might have paid  for more than the current month to any prior landlord (including the Borrower); or
	
 

 

	
 
	
d.
	
liable for repayment of any security deposit not actually paid to Lender; or

 

	
 
	
e.
	
bound by any amendment or modification of the Lease made without Lender's  prior written consent that either reduces the term of the Lease, reduces the rental payable by Tenant or imposes greater duties on Landlord under the Lease; or
	
 

 

	
 
	
f.
	
bound by any provision in the Lease which obligates the landlord thereunder (i) to construct or complete any building or structure or to make any improvements  or  to perform any other construction work (including any work necessary to prepare the Premises for Tenant's occupancy) or (ii) to pay to Tenant (or permit application against rent due under the Lease for) any reimbursement, credit or allowance for construction or build-out performed by Tenant; or
	
 

 

	
 
	
g.
	
bound by any purchase option or right  of first refusal  to purchase the Premises or the Property contained in the Lease, if any, with respect to the Premises or the Property or any part thereof.
	
 

 

Such attornment shall be deemed effective and self-operative without the necessity of executing any further instrument immediately upon the Lender's or foreclosure successor's succession to the interest of Borrower to the Property.

 

4. Intentionally Deleted.

 

5. Consent to Assignment  of Lease; Payment of Rents.  Tenant hereby consents to the Assignment by Borrower to Lender of all of the right, title and interest of Landlord in and to the Lease pursuant to the Assignment.    Tenant is hereby advised that said Assignment includes, among other things, the full and complete assignment by Borrower to Lender of all right, power and privilege of Borrower to direct the party to whom rents and other payments under the Lease are to be paid, which right to direct payment is unconditional and unrestricted and may be exercised by Lender at any time, both before and after the occurrence of any default under the Mortgage.  Pursuant to such right to direct payment, Lender hereby directs Tenant, until further notification by Lender, to pay all rents and other amounts payable by Tenant under the Lease to Borrower.  Upon request by Lender that Tenant pay all rents and other amounts payable by Tenant under the Lease directly to Lender or any other person, Tenant thereafter shall make all such payments directly to Lender or such other person at the address set forth in such request,

 

D-3

 

 

 

unti l further notification by Lender.  Borrower hereby releases Tenant from liability for any such rent payments made by Tenant to Lender or such other person pursuant to Lender's request, and agrees that all such payments shall be credited to Tenant under the Lease as if Tenant had made such payments directly to Landlord.

 

6. Lender Right to Cu re Lease Defaults.  If Borrower defaults under the Lease, Tenant shall give written notice to Lender specifying the default and specifying the steps necessary to cure the default, and Lender shall be given the opportunity without undertaking Borrower's obligations to cure such default.  Lender shall have thirty (30) days after receipt of such notice to cure such default or cause it to be cured, if Lender elects to do so; provided, however, that in the event Lender has begun action to cure the default, but not completed the same within the thirty (30)

day period, the Tenant agrees that Lender shall be permitted such time as is reasonably necessary to complete curing such default; and provided further, however, that if the default is such that it cannot practically be cured by Lender without taking possession of the Property, Lender shall be permitted such additional time as necessary to acquire possession of the Property by foreclosure or otherwise, in order to cure such default  During such cure period, Tenant shall not terminate the Lease or exercise any other remedy thereunder with respect to such default, except for any self-help rights Tenant has under the Lease.

 

7. No Assumption by Lender.  Tenant acknowledges and agrees that Lender has not  assumed and does not have any obligation or liability under or pursuant to the Lease by reason of the Mortgage or the Assignment until Lender forecloses the Mortgage or accepts a deed-in-lieu

of foreclosure, and then Lender shall be obligated under the Lease subject to the terms of this Agreement.

 

8. Tenant Covenants.  Tenant covenants and agrees with Lender that, without the prior written consent of Lender: (a) Tenant will not pay rent under the Lease more than one calendar month in advance of the accrual thereof; (b) Tenant will not amend or modify the Lease (except as set forth in the Lease  to either reduce the term of the Lease, reduce the rental payable by Tenant or impose greater duties on Landlord under the Lease or (by agreement with Borrower) terminate the Lease (except that nothing herein shall limit Tenant's ability to exercise any express rights of termination as set forth in the Lease and Tenant may exercise such express termination rights without the consent of Mortgagee); and (c) Tenant will not assign or pledge the Lease or its rights or obligations thereunder except as expressly permitted in the Lease without  Landlord's  consent.

 

9. Notices.  Tenant shall mail or transmit copies of all written notices (other than routine notices transmitted in the ordinary course of business) it may give Borrower with respect to the Lease to Lender simultaneously with the delivery or mailing of such notices to Borrower.   All notices or other communications which are required or permitted hereunder to be given to any party shall be in writing and shall be deemed sufficiently given if delivered personally or by registered or certified mail, return receipt requested or by overnight delivery service, to the address of such party specified below, or to such other address as the addressee may have specified in a notice duly given to the sender as provided herein:

 

 

D-4

 

 

If to Lender, to:           Voya Insurance and Annuity Company

c/o Voya Investment Management LLC 5780 Powers Ferry Road, NW, Suite 300 Atlanta, Georgia 30327-4349

Attention: Mortgage Asset Management

 

 

If to Tenant, to:

 

 

 

 

And a copy to:

 

 

 

 

 

 

If to Borrower, to:

 

 

 

 

 

	
 
	
10.
	
Miscellaneous.

Surgical Care Affiliates, LLC

569 Brookwood Village, Suite 901

Birmingham, Alabama   35209 Attention:  Legal Services Department

 

Surgical Care Affiliates - 510 Lake Cook Road,

Deerfield, IL

c/o Colliers International-Corporate  Solutions 301 University Avenue, Suite 100

Sacramento, CA  95825 Surgical.Care@colliers.com

 

TR Deerfield Office LLC

c/o Cornerstone Real Estate Advisers LLC. 150 S. Wacker Dr. Suite 350

Chicago, Illinois  60606 Attention: Asset Management

 

 

	
 
	
a.
	
This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. This Agreement may be executed in any number of counterparts and all of such counterparts shall together constitute one and the same instrument.
	
 

 

	
 
	
b.
	
Tenant hereby acknowledges and agrees that (i) any foreclosure successor shall have the right to assign its rights and obligations under the Lease to any other person to whom the Property is transferred, and upon such assignment  and assumption such foreclosure successor shall have no further obligation or liability under the Lease, and
	
 

(ii) the obligations of any foreclosure successor under the Lease shall not be personal obligations of such foreclosure successor, and recourse on such obligations may be had only against the right, title and interest of such foreclosure successor in and to the Property.

 

	
 
	
c.
	
Tenant agrees that, within ten (10) days after receipt of request therefor from Borrower or Lender, Tenant will execute and deliver to Borrower and Lender a tenant estoppel certificate stating that, to the best of the Tenant's knowledge: (a) that the Lease is in full force and effect and has not been amended or modified (or stating any such amendment or modification);  (b) Borrower is not in default under the Lease (or if such default exists specifying such default), and Tenant has no offsets, defenses or counterclaims against Borrower (or any prior landlord) under the Lease with respect to the enforcement of Tenant's obligations thereunder  (or specifying such matters, if
	
 

 

D-5

 

 

 

they in fact exist); (c) the date to which the minimum rent and any additional rent or other charges payable under the Lease have been paid; and (d) that Tenant is not in default under the Lease (or specifying any such defau lt or event that does exist, and what action Tenant is taking or proposes to take to cure the same).

 

	
 
	
d.
	
This Agreement  shall be binding  upon  and shall inure to the benefit  of the parties hereto and their respective successors and assigns.
	
 

 

 

[SIGNATURE PAGE FOLLOWS]

 

D-6

 

 

 

IN WITNESS WHEREOF, the undersigned  have executed this Agreement under seal as of the day and year first above written.

 

 

LENDER:

 

	
 
	
WITNESS or ATTEST:
	
VOYA INSURANCE AND ANNUITY COMPANY
	
 

 

	
 
	
By:
	
Voya Investment Management LLC, as Authorized Agent
	
 

By: (SEAL) 

Name: ________________

Title: __________________

 

BORROWER:

 

	
 
	
WITNESS or ATTEST:
	
TR DEERFIELD OFFICE LLC
	
 

 

	
 
	
By:
	
Cornerstone Real Estate Advisers LLC, Its Manager
	
 

 

 

By:____________________(SEAL)

Name:                                    

Title: __________________

TENANT:

 

	
 
	
WITNESS or ATTEST:
	
SURGICAL CARE AFFILIATES,  LLC, a Delaware limited liability company
	
 

 

 

By:                  (SEAL)     

Name:                                         

Title:                                                    

 

D-7

 

 

STATE OF GEORGIA)

) SS. COUNTY OF FULTON)

 

I, the undersigned, a notary public in and for said County, in the State aforesaid, DO HEREBY    CERTIFY   that, as a of Voya Investment Management LLC, the authorized agent for Voya Insurance and Annuity Company, an Iowa corporation, personally known to me to be the same person whose name is subscribed to the  foregoing  instrument  as such, appeared before me this day in person   and   acknowledged   that,   as   such, he signed and delivered the said instrument, as his free and voluntary act, and as the free and voluntary act and deed of said company, for the uses and purposes therein set forth.

 

GIVEN under my hand and official seal this _ day of              , 201  .

 

 

Notary Public

My Commission expires:                                       

 

 

 

STATE OF ILLINOIS)

) SS.

COUNTY OF COOK)

 

I, the undersigned , a notary public in and for said County, in the State aforesaid, DO HEREBY  CERTIFY  that , as a of Cornerstone Real Estate Advisers LLC, the manager of TR Deerfield Office LLC, a Delaware limited liability company, personally known to me to be the same person whose name is subscribed to the foregoing  instrument   as  such , appeared before me this day in person   and   acknowledged   that,   as   such he signed and delivered the said instrument, as his free and voluntary act, and as the free and voluntary act and deed of said company, for the uses and purposes therein set forth.

 

GIVEN under my hand and official seal this _ day of             , 201_.

 

 

Notary Public

My Commission expires:                                   _

 

D-8

 

 

 

STATE OF ALABAMA       )

) SS. COUNTY OF JEFFERSON  )

 

I, the undersigned, a notary public in and for said County, in the State aforesaid, DO HEREBY CERTIFY that as a of Surgical Care Affiliates, LLC, a Delaware limited liability company, personally known to me to be  the  same  person  whose  name  is  subscribed  to  the  foregoing  instrument   as  such

--------- ' appeared before me this day in person and acknowledged that, as   such, he signed and delivered the said instrument, as his free and voluntary act, and as the free and voluntary act and deed of said company, for the uses and purposes therein set forth.

 

GIVEN under my hand and official seal this _ day of                       , 201_.

 

 

Notary Public

My Commission expires:                                   

 

D-9

 

 

EXHIBIT A 

DESCRIPTION OF THE PROPERTY

 

PARCEL 1:

 

LOT 1 (EXCEPT THE SOUTH 20 FEET THEREOF) AND LOT 2 IN CORPORATE 500 SUBDIVISION, A SUBDIVISION OF PART OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED FEBRUARY 4, 1988 AS DOCUMENT 2654632, IN LAKE COUNTY, ILLINOIS.

 

PARCEL 2:

 

A PERPETUAL NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF PARCEL 1, FOR INGRESS AND EGRESS AND UTILITY SERVICES, OVER PUBLIC WALKWAYS, DRIVEWAYS AND ROADWAYS, INCLUDING, BUT NOT LIMITED TO, THE 4 LANE STREET ("MAIN ROAD") BETWEEN LAKE-COOK ROAD AND KATES ROAD AS DESCRIBED IN THE DECLARATION  CREATING SAID EASEMENT RECORDED FEBRUARY 16, 1988 AS DOCUMENT 2657231 AND AMENDED BY SCRIVENER'S AFFIDAVIT RECORDED MAY 20, 1988 AS DOCUMENT 2683813 AND AS AMENDED BY MODIFICATION RECORDED OCTOBER 7, 1991 AS DOCUMENT 3070336, (EXCEPT THEREFROM THAT PART THEREOF FALLING IN PARCEL 1) IN LAKE COUNTY, ILLINOIS.

 

PARCEL 3:

 

THE NORTH 217 FEET OF THE SOUTH 267 FEET OF THE WEST 276.18 FEET OF THE EAST 476.18 FEET OF THE SOUTH 788.62 FEET OF THE SOUTH HALF OF THE SOUTHWEST 114 OF SECTION 33, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, (EXCEPTING THEREFROM THE SOUTH 20 FEET THEREOF), IN LAKE COUNTY, ILLINOIS.

 

PARCEL 4:

 

EASEMENT FOR PARKING AND INGRESS AND EGRESS FOR THE BENEFIT OF PARCEL 1 - LOT 2 OVER THE SOUTHERLY 15 FEET OF THE FOLLOWING DESCRIBED PROPERTY: THAT PART OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SOUTHWEST 1/4; THENCE NORTH 90 DEGREES 00 MINUTES 00 SECONDS WEST, A DISTANCE OF 876.18 FEET ALONG THE SOUTH LINE OF SAID SOUTHWEST 114 TO THE NORTHEASTERLY LINE OF THE CHICAGO, MILWAUKEE, ST. PAUL AND PACIFIC RAILROAD; THENCE NORTH 25 DEGREES 09 MINUTES 46 SECONDS WEST, A  DISTANCE  OF  1,944.80  FEET  ALONG  THE  NORTHEASTERLY  LINE  OF  SAID

 

D-10

 

 

RAILROAD TO A POINT ON THE SOUTHEASTERLY LINE OF KATES ROAD; THENCE NORTH 32 DEGREES 28 MINUTES 02 SECONDS EAST,  A DISTANCE OF 69.23 FEET ALONG THE SOUTHEASTERLY LINE OF SAID ROAD TO THE POINT OF BEGINNING; THENCE  NORTH  32  DEGREES  28  MINUTES  02  SECONDS  EAST  A  DISTANCE  OF

185.48FEET TO A POINT ON THE SOUTH LINE OF SAID KATES ROAD;  THENCE SOUTH 89 DEGREES 54 MINUTES 13 SECONDS EAST ALONG SAID SOUTH LINE, A DISTANCE OF 824.12 FEET TO A POINT; THENCE  SOUTHWESTERLY  ALONG  THE ARC OF A CIRCLE HAVINO A RADIUS OF 2,251.83 FEET AND CONVEX NORTHWESTERLY,  A DISTANCE OF 215.94 FEET TO A POINT;

 

THENCE SOUTH 84 DEGREES 36 MINUTES 14 SECONDS WEST ALONG TANGENT, A DISTANCE OF 392.01 FEET TO A POINT;  THENCE  SOUTHWESTERLY  ALONG  THE ARC OF A CIRCLE HAVINO A RADIUS OF 634.07 FEET AND CONVEX NORTHWESTERLY, A DISTANCE OF 219.82 FEET TO A POINT; THENCE SOUTH 64 DEGREES 44 MINUTES 24 SECONDS WEST, A DISTANCE OF 118.14 FEET TO THE POINT OF BEGINNING, AS GRANTED BY INSTRUMENT RECORDED  DECEMBER  8, 1988 AS DOCUMENT 2747296, (EXCEPT THAT PART THEREOF LYING EAST OF THE WEST LINE OF PARCEL 1 EXTENDED NORTHERLY) IN LAKE COUNTY, ILLINOIS.

 

 

COMMON ADDRESS:  Corporate 500, 500-540 Lake Cook Road, Deerfield, Illinois  60015 PINS:   16-33-301-009 and  16-33-301-013

 

D-11

 

EXHIBIT E

 

FORM OF LETTER OF CREDIT 

IRREVOCABLE STAND BY LETTER OF CREDIT NO.

 

 

Date: ------

, 201

 

 

 

BENEFICIARYTR Deerfield Office LLCc/o Cornerstone Real Estate Advisers LLC 150 S. Wacker Drive, Suite 350Chicago, Illinois 60606 Attention: Asset ManagerAPPLICANTSurgical Care Affiliates, LLC Suite 250520 Lake Cook Road Deerfield, Illinois 60015 Attention:

 

1.  By the order of Surgical Care Affiliates, LLC ("Applicant"), we hereby issue in favor of TR Deerfield Office LLC or any succeeding transferee ("Beneficiary") our Irrevocable Standby  Letter  of  Credit  No .("Letter   of   Credit")   for   the   amount   of

 Dollars ($(the "Maximum Amount").

 

2. This Letter of Credit is effective immediately and expires at 5:00 p.m. Eastern Time on                    ("Expiration Date").

 

3. Presentation(s) of draft(s) and certificate(s) to us by the Beneficiary in accordance with this Letter of Credit shall be made at our offices located at JPMorgan Chase Bank, N.A. c/o JPMorgan Treasury Services, 10420 Highland Manor Dr., 4th Fl., Tampa, FL 33610 Att:  Standby Letter of Credit Department.                    

 

4. The Beneficiary may make full or multiple partial draws from time to time upon this Letter of Credit in an aggregate amount up to the Maximum Amount, as in effect from time to time. Each such drawing shall be made by presentation to us by the Beneficiary of a certificate and a draft, in the forms, respectively, of Exhibits "E-1" and "E-2" hereto, each duly completed and signed by the Beneficiary.

 

5. Applicant shall pay all costs of, or in connection with, this Letter of Credit, including any transfer fees. This Letter of Credit cannot be amended, discharged or terminated except by a writing signed by authorized representatives of Beneficiary and the undersigned on or before the Expiration Date.

 

6. Except as otherwise stated herein, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits, 2007  revision, International Chamber of Commerce Publication Brochure No. 600 ("UCP"). As to matters not covered by the UCP and

 

D-11

 

 

to the extent not  inconsistent  with  the UCP, this  Letter  of Credit shall  be  governed  by and construed in accordance with the laws of the State of New York.

 

7.This Letter of Credit sets forth in full the terms of our undertaking, and such terms shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein; and any such reference shall  not  be deemed to incorporate in this Letter of Credit by reference any document, instrument or agreement.

 

8.THIS LETTER OF CREDIT IS TRANSFERABLE, BUT ONLY IN ITS ENTIRETY, AND MAY BE SUCCESSIVELY TRANSFERRED. TRANSFER OF THIS LETTER OF CREDIT SHALL BE EFFECTED BY US  UPON  YOUR  SUBMISSION  OF THIS  ORIGINAL   LETTER   OF   CREDIT,   INCLUDING   ALL   AMENDMENTS,   IF ANY, ACCOMPANIED BY OUR TRANSFER REQUEST FORM  DULY  COMPLETED AND SIGNED, WITH THE SIGNATURE  THEREON  AUTHENTICATED  BY  YOUR BANK. IF YOU WISH TO TRANSFER THE LETTER  OF CREDIT,  PLEASE  CONTACT US FOR THE FORM WHICH WE SHALL  PROVIDE   TO  YOU  UPON  YOUR REQUEST. IN ANY EVENT, THIS LETTER OF CREDIT MAY NOT BE TRANSFERRED TO ANY PERSON OR ENTITY LISTED IN OR OTHERWISE SUBJECT TO, ANY SANCTION OR EMBARGO UNDER ANY APPLICABLE  RESTRICTIONS.  CHARGES AND FEES RELATED TO SUCH TRANSFER WILL BE FOR THE ACCOUNT OF THE APPLICANT

 

Very truly yours,

 

 

 

 

 

[ISSUING BANK, NAME OF SIGNATORY,  TITLE]

 

E-2

 

 

EXHIBIT "E-1" CERTIFICATE

(Drawing Certificate)

 

 

 

 

 

                     201_

 

[ISSUING BANK

BRANCH AND ADDRESS]

 

 

Re:      Irrevocable Standby Letter of Credit No.          _

 

The undersigned, a duly authorized representative of the Beneficiary under the above-referenced Letter of Credit, hereby certifies that the Beneficiary is entitled to the sums to be drawn under the Letter  of  Credit  pursuant  to that  certain  Lease  dated by  and between Applicant and Beneficiary, as same may have been subsequently amended, modified or assigned.

 

 

 

[Beneficiary]

 

E-3

 

 

EXHIBIT "E-2"

 

SIGHT DRAFT

 

Drawn Under Irrevocable Letter of Credit No . ----

 

                                                                                                 ' 201_

 

To:[Issuing Bank and Address]

AT SIGHT, Pay to the order of                                _ ("Beneficiary"), the sum of

--------United States Dollars (U.S. $--------

[Beneficiary]

E-4fmi-ex101_173.htm

 

Exhibit 10.1

 

LEASE AGREEMENT

THIS LEASE AGREEMENT (this “Lease”) is made this 18th day of April, 2016, between ARE-7030 KIT CREEK, LLC, a Delaware limited liability company (“Landlord”), and FOUNDATION MEDICINE, INC., a Delaware corporation (“Tenant”).

	
Building:
	
7010 Kit Creek Road, Research Triangle Park, North Carolina 

	
Premises:
	
The Building, containing approximately 48,236 rentable square feet.

	
Project:
	
The real property on which the Building in which the Premises are located, together with all improvements thereon and appurtenances thereto as described on Exhibit B.

	
Base Rent:
	
$21.50 per rentable square foot of the Premises per year, subject to adjustment pursuant to Section 4 hereof.

Rentable Area of Premises: 48,236 sq. ft.

Rentable Area of Project:  133,634 sq. ft.

Tenant’s Share of Operating Expenses of the Building:  100%

Building Share of Project:  36.09%

	
Security Deposit:  None 
	
Target Commencement Date:  April 18, 2016

Rent Adjustment Percentage:  3%

	
Base Term:
	
Beginning on the Commencement Date and ending 60 months from the first day of the first full month following the Rent Commencement Date.

	
Permitted Use:
	
Research and development laboratory, general office and other related uses consistent with the character of the Project and otherwise in compliance with the provisions of Section 7 hereof.

Address for Rent Payment:Landlord’s Notice Address:

P.O. Box 975383385 E. Colorado Boulevard, Suite 299

Dallas, TX 75397-5383Pasadena, CA 91101

Attention: Corporate Secretary

Tenant’s Notice Address:

7010 Kit Creek Road
Research Triangle Park, North Carolina 27709
Attention:  Lease Administrator

Copy to:  Director of Facilities

Copy to:  General Counsel

The following Exhibits and Addenda are attached hereto and incorporated herein by this reference:

	
[X]  EXHIBIT A - PREMISES DESCRIPTION
	
[X]  EXHIBIT B - DESCRIPTION OF PROJECT

	
[X]  EXHIBIT C - WORK LETTER
	
[X]  EXHIBIT D - COMMENCEMENT DATE

Net Laboratory7010 Kit Creek/Foundation Medicine - Page 2

	
[X]  EXHIBIT E - RULES AND REGULATIONS
	
[X]  EXHIBIT F - TENANT’S PERSONAL PROPERTY

1.Lease of Premises.  Upon and subject to all of the terms and conditions hereof, Landlord hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord.  The portions of the Project which are for the non-exclusive use of tenants of the Project are collectively referred to herein as the “Common Areas.”  The Common Areas may include, without limitation, (i) common driveways, parking areas and loading areas, (ii) pedestrian sidewalks, and (iii) landscaped areas.  Landlord reserves the right to modify Common Areas, provided that such modifications do not materially adversely affect Tenant’s use of the Premises for the Permitted Use.  Tenant shall have the non-exclusive use of the Common Areas in common with other tenants and occupants of the Project.  From and after the Commencement Date through the expiration of the Term, Tenant shall have access to the Building and the Premises 24 hours a day, 7 days a week, except in the case of emergencies, as the result of Legal Requirements, the performance by Landlord of any installation, maintenance or repairs, or any other temporary interruptions, and otherwise subject to the terms of this Lease.

2.Delivery; Acceptance of Premises; Commencement Date.  The “Commencement Date” shall be the date that Tenant acquires the assets of Sequenom, Inc. a Delaware corporation (“Sequenom”), pursuant to that certain Asset and Purchase Agreement by and between Tenant and Sequenom Center for Molecular Medicine, LLC, dated as of April __, 2016 (the “Acquisition Agreement”).  The “Rent Commencement Date” shall be the date that is 9 months after the Commencement Date.  Upon request of either party, Landlord and Tenant shall execute and deliver a written acknowledgment of the Commencement Date, the Rent Commencement Date and the expiration date of the Term when such are established in the form of the “Acknowledgement of Commencement Date” attached to this Lease as Exhibit D; provided, however, neither party’s failure to execute and deliver such acknowledgment shall affect the rights or obligations of the other party hereunder.  The “Term” of this Lease shall be the Base Term, as defined above on the first page of this Lease and any Extension Terms which Tenant may elect pursuant to Section 39 hereof.

Except as set forth in the Work Letter or as otherwise set forth in this Lease:  (i) Tenant shall accept the Premises in their condition as of the Commencement Date, subject to all applicable Legal Requirements (as defined in Section 7 hereof); (ii) Landlord shall have no obligation for any defects in the Premises; and (iii) Tenant’s taking possession of the Premises shall be conclusive evidence that Tenant accepts the Premises and that the Premises were in good condition at the time possession was taken.  Any occupancy of the Premises by Tenant before the Commencement Date shall be subject to all of the terms and conditions of this Lease, including the obligation to pay Operating Expenses, but excluding the obligation to pay Base Rent.

Landlord shall, at its sole cost and expense (which shall not constitute an Operating Expense), be responsible for any repairs that are required to be made to the Building Systems (as defined in Section 14) of which repairs Tenant notifies Landlord on or before the date that is 30 days after the Commencement Date, unless Tenant or any Tenant Party was responsible for the cause of such repair, in which case Tenant shall pay the cost.  Landlord shall be responsible for completing the repairs for which it is responsible under this paragraph at its own cost and expense and in a good and workmanlike manner.

Notwithstanding anything to the contrary contained in this Lease, Tenant and Landlord acknowledge and agree that the effectiveness of this Lease shall be subject to the following conditions precedent (“Conditions Precedent”) having been satisfied:  (i) Landlord shall have entered into a lease termination agreement (“Termination Agreement”) on or before April 30, 2016, with the existing tenant of the Premises which Termination Agreement shall be on terms and conditions acceptable to Landlord, in Landlord’s sole and absolute discretion, and (ii) Tenant shall have acquired Sequenom’s assets pursuant to the Acquisition Agreement (the “Acquisition Condition”).  Tenant shall deliver written notice to Landlord when the Acquisition Condition has occurred.  In the event that the Conditions Precedent are not satisfied on or before April 30, 2016, this Lease shall terminate and shall be null and void and of no 

Net Laboratory7010 Kit Creek/Foundation Medicine - Page 3

further force or effect.  Landlord shall have no liability whatsoever to Tenant relating to or arising from Landlord’s inability or failure to cause the Conditions Precedent to be satisfied.

Except as otherwise expressly set forth in this Lease, Tenant agrees and acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of all or any portion of the Premises or the Project, and/or the suitability of the Premises or the Project for the conduct of Tenant’s business, and Tenant waives any implied warranty that the Premises or the Project are suitable for the Permitted Use.  This Lease constitutes the complete agreement of Landlord and Tenant with respect to the subject matter hereof and supersedes any and all prior representations, inducements, promises, agreements, understandings and negotiations which are not contained herein.  

3.Rent.

(a)Base Rent.  Base Rent for the month in which the Rent Commencement Date occurs shall be due and payable on delivery of an executed copy of this Lease to Landlord.  On or before the first day of each calendar month during the Term hereof after the Rent Commencement Date, Tenant shall pay to Landlord in advance, without demand, abatement, deduction or set-off, equal monthly installments of Base Rent, in lawful money of the United States of America, at the office of Landlord for payment of Rent set forth above, or to such other person or at such other place as Landlord may from time to time designate in writing.  Payments of Base Rent for any fractional calendar month shall be prorated.  The obligation of Tenant to pay Base Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations.  Tenant shall have no right at any time to abate, reduce, or set-off any Rent (as defined in Section 5) due hereunder except for any abatement as may be expressly provided in this Lease. 

(b)Additional Rent.  In addition to Base Rent, Tenant agrees to pay to Landlord as additional rent (“Additional Rent”):  (i) commencing on the Commencement Date, Tenant’s Share of “Operating Expenses” (as defined in Section 5), and (ii) any and all other amounts Tenant assumes or agrees to pay under the provisions of this Lease, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure to comply with the agreements, terms, covenants and conditions of this Lease to be performed by Tenant, after any applicable notice and cure period.

4.Base Rent Adjustments.  

(a)Annual Adjustments.  Base Rent shall be increased on each annual anniversary of the Rent Commencement Date (or, if the Rent Commencement Date does not occur on the first day of a calendar month, the first day of the first full month following the month in which the Rent Commencement Date occurs) (each an “Adjustment Date”) by multiplying the Base Rent payable immediately before such Adjustment Date by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable immediately before such Adjustment Date.  Base Rent, as so adjusted, shall thereafter be due as provided herein.  Base Rent adjustments for any fractional calendar month shall be prorated.  

(b)TI Allowance.  Landlord shall, subject to the terms of the Work Letter, provide the TI Allowance to Tenant for the construction of Tenant Improvements in the Premises. For each of the following incremental levels of the TI Allowance disbursed by Landlord, in addition to Base Rent, Tenant shall pay “TI Rent” in an amount equal to the amount (per rentable square foot per year) for such increment of TI Allowance on the schedule set forth below:

		
	
Aggregate TI Allowance Disbursed by Landlord
per rentable square foot

 
	
TI Rent payable per $1.00 of
TI Allowance
(per rentable square foot)

	
$0.00 - $10.00
	
$0.00

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$10.01 - $25.00
	
$0.2547

 

For the avoidance of doubt, TI Rent shall only be payable with respect to any portions of the TI Allowance over $10.00 actually disbursed by Landlord.  For example, if the entire TI Allowance was disbursed by Landlord, Tenant would be required to pay, in addition to Base Rent, TI Rent in the amount of $3.82 per rentable square foot of the Premises per year.  If $11.50 of the TI Allowance per rentable square foot of the Premises was disbursed, Tenant would be required to pay, in addition to Base Rent, TI Rent in the amount of $0.38  per rentable square foot of the Premises per year (e.g., the product of $1.50 x $0.2547).

5.Operating Expense Payments.  Prior to the Commencement Date and thereafter prior to the commencement of each calendar year, Landlord shall deliver to Tenant a written estimate of Operating Expenses for each calendar year during the Term (the “Annual Estimate”), which may be revised by Landlord from time to time during such calendar year,  but in no event more than twice in each 12-month period.  Commencing on the Commencement Date and continuing thereafter on the first day of each month during the Term, Tenant shall pay Landlord an amount equal to 1/12th of Tenant’s Share of the most recent Annual Estimate delivered to Tenant.  Payments for any fractional calendar month shall be prorated.

The term “Operating Expenses” means all costs and expenses of any kind or description whatsoever incurred or accrued each calendar year by Landlord with respect to the Building (including the Building’s Share of all costs and expenses of any kind or description incurred or accrued by Landlord with respect to the Project which are not specific to the Building or any other building located in the Project) (including, without duplication, Taxes (as defined in Section 9), reasonable reserves consistent with good business practice for future repairs and replacements, capital repairs and improvements amortized over the lesser of 10 years and the useful life of such capital items, and the costs of Landlord’s third party property manager (not to exceed 5.0% of Base Rent) or, if there is no third party property manager, administration rent in the amount of 5.0% of Base Rent (provided, however, that for the period commencing on the Commencement Date through the day immediately preceding the Rent Commencement Date, Tenant shall be required to pay administration rent each month equal to the amount of the administration rent that Tenant would have been required to pay if Base Rent were not being abated)), excluding only:

(a)the original construction costs of the Project and renovation prior to the date of the Lease and costs of correcting defects in such original construction or renovation;

(b)capital expenditures for expansion of the Project;

(c)interest, principal and other payments pursuant to a Mortgage (as defined in Section 27) debts of Landlord, financing costs and amortization of funds borrowed by Landlord, whether secured or unsecured and all payments of base rent (but not taxes or operating expenses) under any ground lease or other underlying lease of all or any portion of the Project;

(d)depreciation of the Project (except for capital improvements, the cost of which are  includable in Operating Expenses);

(e)advertising, promotional, legal and space planning expenses and leasing commissions and other costs and expenses incurred in procuring and leasing space to tenants for the Project, including any leasing office maintained in the Project, free rent and construction allowances for tenants;

(f)legal and other expenses incurred in the negotiation or enforcement of leases;

(g)completing, fixturing, improving, renovating, painting, redecorating or other work, which Landlord pays for or performs for other tenants within their premises, and costs of correcting defects in such work;

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(h)costs to be reimbursed by other tenants of the Project or Taxes to be paid directly by Tenant or other tenants of the Project, whether or not actually paid;

(i)salaries, wages, benefits and other compensation paid to (i) personnel of Landlord or its agents or contractors above the position of the person, regardless of title, who has day-to-day management responsibility for the Project or (ii) officers and employees of Landlord or its affiliates who are not assigned in whole or in part to the operation, management, maintenance or repair of the Project; provided, however, that with respect to any such person who does not devote substantially all of his or her employed time to the Project, the salaries, wages, benefits and other compensation of such person shall be prorated to reflect time spent on matters related to operating, managing, maintaining or repairing the Project in comparison to the time spent on matters unrelated to operating, managing, maintaining or repairing the Project;

(j)general organizational, administrative and overhead costs relating to maintaining Landlord’s existence, either as a corporation, partnership, or other entity, including general corporate, legal and accounting expenses;

(k)costs (including attorneys’ fees and costs of settlement, judgments and payments in lieu thereof) incurred in connection with disputes with tenants, other occupants, or prospective tenants, and costs and expenses, including legal fees, incurred in connection with negotiations or disputes with employees, consultants, management agents, leasing agents, purchasers or mortgagees of the Building;

(l)costs incurred by Landlord due to the violation by Landlord, its employees, agents or contractors or any tenant of the terms and conditions of any lease of space in the Project or any Legal Requirement (as defined in Section 7);

(m)penalties, fines or interest incurred as a result of Landlord’s inability or failure  to make payment of Taxes and/or to file any tax or informational returns when due, or from Landlord’s failure to make any payment of Taxes required to be made by Landlord hereunder before delinquency;

(n)overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in or to the Project to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis;

(o)costs of Landlord’s charitable or political contributions, or of fine art maintained at the Project;

(p)costs in connection with services (including electricity), items or other benefits of a type which are not standard for the Project and which are not available to Tenant without specific charges therefor, but which are provided to another tenant or occupant of the Project, whether or not such other tenant or occupant is specifically charged therefor by Landlord;

(q)costs incurred in the sale or refinancing of the Project;

(r)any costs incurred to remove, study, test or remediate Hazardous Materials in or about the Building or the Project for which Tenant is not responsible under Section 30 hereof;

(s)net income taxes of Landlord or the owner of any interest in the Project, franchise, capital stock, gift, estate or inheritance taxes or any federal, state or local documentary taxes imposed against the Project or any portion thereof or interest therein; and

(t)any expenses otherwise includable within Operating Expenses to the extent actually reimbursed by persons other than tenants of the Project under leases for space in the Project.

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 Within 90 days after the end of each calendar year (or such longer period as may be reasonably required), Landlord shall furnish to Tenant a statement (an “Annual Statement”) showing in reasonable detail:  (a) the total and Tenant’s Share of actual Operating Expenses for the previous calendar year, and (b) the total of Tenant’s payments in respect of Operating Expenses for such year.  If Tenant’s Share of actual Operating Expenses for such year exceeds Tenant’s payments of Operating Expenses for such year, the excess shall be due and payable by Tenant as Rent within 30 days after delivery of such Annual Statement to Tenant.  If Tenant’s payments of Operating Expenses for such year exceed Tenant’s Share of actual Operating Expenses for such year Landlord shall pay the excess to Tenant within 30 days after delivery of such Annual Statement, except that after the expiration, or earlier termination of the Term or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord.  Landlord’s and Tenant’s obligations to pay any overpayments or deficiencies due pursuant to this paragraph shall survive the expiration or earlier termination of this Lease.

Following the date that is 18 months after Landlord’s delivery of an Annual Statement to Tenant, Tenant shall not be responsible for the payment of items of Operating Expenses not reflected in such Annual Statement, except for Taxes for which Tenant is responsible under this Lease and/or any costs for which Landlord is billed after the expiration of such 18 month period.

The Annual Statement shall be final and binding upon Tenant unless Tenant, within 60 days after Tenant’s receipt thereof, shall contest any item therein by giving written notice to Landlord, specifying each item contested and the reason therefor.  If, during such 60 day period, Tenant reasonably and in good faith questions or contests the accuracy of Landlord’s statement of Tenant’s Share of Operating Expenses, Landlord will provide Tenant with access to Landlord’s books and records relating to the operation of the Project and such information as Landlord reasonably determines to be responsive to Tenant’s questions (the “Expense Information”).  If after Tenant’s review of such Expense Information, Landlord and Tenant cannot agree upon the amount of Tenant’s Share of Operating Expenses, then Tenant shall have the right to have an independent regionally recognized public accounting firm selected by Tenant and approved by Landlord (which approval shall not be unreasonably withheld or delayed), working pursuant to a fee arrangement other than a contingent fee (at Tenant’s sole cost and expense), audit and/or review the Expense Information for the year in question (the “Independent Review”).  The results of any such Independent Review shall be binding on Landlord and Tenant.  If the Independent Review shows that the payments actually made by Tenant with respect to Operating Expenses for the calendar year in question exceeded Tenant’s Share of Operating Expenses for such calendar year, Landlord shall at Landlord’s option either (i) credit the excess amount to the next succeeding installments of estimated Operating Expenses or (ii) pay the excess to Tenant within 30 days after delivery of such statement, except that after the expiration or earlier termination of this Lease or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord.  If the Independent Review shows that Tenant’s payments with respect to Operating Expenses for such calendar year were less than Tenant’s Share of Operating Expenses for the calendar year, Tenant shall pay the deficiency to Landlord within 30 days after delivery of such statement.  If the Independent Review shows that Tenant has overpaid with respect to Operating Expenses by more than 5% then Landlord shall reimburse Tenant for all costs incurred by Tenant for the Independent Review. Operating Expenses for the calendar years in which Tenant’s obligation to share therein begins and ends shall be prorated.  

The “Building Share of Project” shall be the percentage set forth on the first page of this Lease as Tenant’s Share as reasonably adjusted by Landlord for changes in the physical size of the Premises or the Building occurring thereafter.  If Landlord has a reasonable basis for doing so, Landlord may equitably increase the Building’s Share of Project for 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 Project that includes the Premises or that varies with occupancy or use. Any such increase in the Building Share of Project shall be reflected in the applicable Annual Statement. Base Rent, Tenant’s Share of Operating Expenses and all other amounts payable by Tenant to Landlord hereunder are collectively referred to herein as “Rent.” 

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6.Intentionally Omitted.  

7.Use.  The Premises shall be used solely for the Permitted Use set forth in the basic lease provisions on page 1 of this Lease, and in compliance with all laws, orders, judgments, ordinances, regulations, codes, directives, permits, licenses, covenants and restrictions now or hereafter applicable to the Premises, and to the use and occupancy thereof, including, without limitation, the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (together with the regulations promulgated pursuant thereto, “ADA”) (collectively, “Legal Requirements” and each, a “Legal Requirement”).  Tenant shall, upon 5 days’ written notice from Landlord, discontinue any use of the Premises which is declared by any Governmental Authority (as defined in Section 9) having jurisdiction to be a violation of a Legal Requirement.  Tenant will not use or permit the Premises to be used for any purpose or in any manner that would void Tenant’s or Landlord’s insurance, increase the insurance risk, or cause the disallowance of any sprinkler or other credits.  Tenant shall not permit any part of the Premises to be used as a “place of public accommodation”, as defined in the ADA or any similar legal requirement.  Tenant shall reimburse Landlord promptly upon demand for any additional premium charged for any such insurance policy by reason of Tenant’s failure to comply with the provisions of this Section or otherwise caused by Tenant’s specific use and/or occupancy of the Premises.  Tenant will use the Premises in a careful, safe and proper manner and will not commit or permit waste, overload the floor or structure of the Premises, subject the Premises to use that would damage the Premises or obstruct or interfere with the rights of Landlord or other tenants or occupants of the Project, including conducting or giving notice of any auction, liquidation, or going out of business sale on the Premises, or using or allowing the Premises to be used for any unlawful purpose.  Tenant shall cause any equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations from the Premises from extending into Common Areas, or other space in the Project.  Tenant shall not place any machinery or equipment which will overload the floor in or upon the Premises or transport or move such items through the Common Areas of the Project or in the Project elevators without the prior written consent of Landlord, which shall not be unreasonably withheld or delayed.  Landlord acknowledges that the equipment existing in the Premises as of the Commencement Date is in compliance with the immediately preceding sentence.  Except as may be provided under the Work Letter, Tenant shall not, without the prior written consent of Landlord, use the Premises in any manner which will require ventilation, air exchange, heating, gas, steam, electricity or water beyond the existing capacity of the Project as proportionately allocated to the Premises based upon Tenant’s Share as usually furnished for the Permitted Use.

Landlord shall be responsible for the compliance of the Common Areas of the Project with the ADA as of the Commencement Date.  Following the Commencement Date, Landlord shall, as an Operating Expense (to the extent such Legal Requirement is generally applicable to similar buildings in the area in which the Project is located) and at Tenant’s expense (to the extent such Legal Requirement is triggered by reason of Tenant’s, as compared to other tenants of the Project, specific use of the Premises or Tenant’s Alterations) make any alterations or modifications to the Common Areas or the exterior of the Building that are required by Legal Requirements, including the ADA. Tenant, at its sole expense, shall make any alterations or modifications to the interior of the Premises that are required by Legal Requirements (including, without limitation, compliance of the Premises with the ADA) related to Tenant’s use or occupancy of the Premises.  Notwithstanding any other provision herein to the contrary, Tenant shall be responsible for any and all demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or judgments, and all reasonable expenses incurred in investigating or resisting the same (including, without limitation, reasonable attorneys’ fees, charges and disbursements and costs of suit) (collectively, “Claims”) arising out of or in connection with Legal Requirements related to Tenant’s use or occupancy of the Premises or Tenant’s Alterations, and Tenant shall indemnify, defend, hold and save Landlord harmless from and against any and all Claims arising out of or in connection with any failure of the Premises to comply with any Legal Requirement related to Tenant’s use or occupancy of the Premises or Tenant’s Alterations. 

8.Holding Over.  If, with Landlord’s express written consent, Tenant retains possession of the Premises after the termination of the Term, (i) unless otherwise agreed in such written consent, such possession shall be subject to immediate termination by Landlord at any time, (ii) all of the other terms and provisions of this Lease (including, without limitation, the adjustment of Base Rent pursuant to 

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Section 4 hereof) shall remain in full force and effect (excluding any expansion or renewal option or other similar right or option) during such holdover period, (iii) Tenant shall continue to pay Base Rent in the amount payable upon the date of the expiration or earlier termination of this Lease or such other amount as Landlord and Tenant may agree in such written consent, and (iv) all other payments shall continue under the terms of this Lease.  If Tenant remains in possession of the Premises after the expiration or earlier termination of the Term without the express written consent of Landlord, (A) Tenant shall become a tenant at sufferance upon the terms of this Lease except that the monthly rental shall be equal to 150% of Rent in effect during the last 30 days of the Term, and (B) Tenant shall be responsible for all damages suffered by Landlord resulting from or occasioned by Tenant’s holding over, including consequential damages.  No holding over by Tenant, whether with or without consent of Landlord, shall operate to extend this Lease except as otherwise expressly provided, and this Section 8 shall not be construed as consent for Tenant to retain possession of the Premises.  Acceptance by Landlord of Rent after the expiration of the Term or earlier termination of this Lease shall not result in a renewal or reinstatement of this Lease.

9.Taxes.  Landlord shall pay, as part of Operating Expenses, all taxes, levies, fees, assessments and governmental charges of any kind, existing as of the Commencement Date or thereafter enacted (collectively referred to as “Taxes”), imposed by any federal, state, regional, municipal, local or other governmental authority or agency, including, without limitation, quasi-public agencies (collectively, “Governmental Authority”) during the Term, including, without limitation, all Taxes:  (i) imposed on or measured by or based, in whole or in part, on rent payable to (or gross receipts received by) Landlord under this Lease and/or from the rental by Landlord of the Project or any portion thereof, or (ii) based on the square footage, assessed value or other measure or evaluation of any kind of the Premises or the Project, or (iii) assessed or imposed by or on the operation or maintenance of any portion of the Premises or the Project, including parking, or (iv) assessed or imposed by, or at the direction of, or resulting from Legal Requirements, or interpretations thereof, promulgated by any Governmental Authority, or (v) imposed as a license or other fee, charge, tax, or assessment on Landlord’s business or occupation of leasing space in the Project.  Landlord may contest by appropriate legal proceedings the amount, validity, or application of any Taxes or liens securing Taxes.  Taxes shall not include any net income taxes imposed on Landlord except to the extent such net income taxes are in substitution for any Taxes payable hereunder.  If any such Tax is levied or assessed directly against Tenant, then Tenant shall be responsible for and shall pay the same at such times and in such manner as the taxing authority shall require.  Tenant shall pay, prior to delinquency, any and all Taxes levied or assessed against any personal property or trade fixtures placed by Tenant in the Premises, whether levied or assessed against Landlord or Tenant.  If any Taxes on Tenant’s personal property or trade fixtures are levied against Landlord or Landlord’s property, or if the assessed valuation of the Project is increased by a value attributable to improvements in or alterations to the Premises, whether owned by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, higher than the base valuation on which Landlord from time-to-time allocates Taxes to all tenants in the Project, Landlord shall have the right, but not the obligation, to pay such Taxes.  Landlord’s determination of any excess assessed valuation shall be binding and conclusive, absent manifest error.  The amount of any such payment by Landlord shall constitute Additional Rent due from Tenant to Landlord immediately upon demand.

10.Parking.  Subject to all matters of record, Force Majeure, a Taking (as defined in Section 19 below) and the exercise by Landlord of its rights hereunder, Tenant shall have the right, at no additional cost during the Term, in common with other tenants of the Project pro rata in accordance with the rentable area of the Premises and the rentable areas of the Project occupied by such other tenants, to park in those areas designated for non-reserved parking, subject in each case to Landlord’s rules and regulations.  Ten of the parking spaces which Tenant is entitled to use pursuant to the preceding sentence in connection with the Building may, at Tenant’s request, be designated as “guest parking” spaces and be in locations selected by landlord adjacent to the Building.  Landlord may allocate parking spaces among Tenant and other tenants in the Project on a pro rata basis as determined by dividing the rentable square footage of the Premises by the rentable square footage of the Project if Landlord determines that such parking facilities are becoming crowded.  Landlord shall not be responsible for enforcing Tenant’s parking rights against any third parties, including other tenants of the Project. 

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11.Utilities, Services.  

(a)General.  Landlord shall provide, subject to the terms of this Section 11, water, electricity, heat, light, power, sewer, and other utilities (including gas and fire sprinklers to the extent the Project is plumbed for such services), and with respect to the Common Areas only, refuse and trash collection and janitorial services (collectively, “Utilities”).  Landlord shall pay, as Operating Expenses or subject to Tenant’s reimbursement obligation, for all Utilities used on the Premises, all maintenance charges for Utilities, and any storm sewer charges or other similar charges for Utilities imposed by any Governmental Authority or Utility provider, and any taxes, penalties, surcharges or similar charges thereon.  Tenant shall pay directly to the Utility provider, prior to delinquency, any separately metered Utilities and services which may be furnished to Tenant or the Premises during the Term.  Tenant shall pay, as part of Operating Expenses, its share of all charges for jointly metered Utilities based upon consumption, as reasonably determined by Landlord.  No interruption or failure of Utilities, from any cause whatsoever other than Landlord’s willful misconduct, shall result in eviction or constructive eviction of Tenant, termination of this Lease or, except as otherwise provided in the immediately following paragraph, the abatement of Rent.  Tenant shall be responsible for obtaining and paying for its own janitorial services and refuse and trash collection for the Premises.  

Notwithstanding anything to the contrary set forth herein, if (i) a stoppage of an Essential Service (as defined below) to the Premises shall occur and such stoppage is due solely to the gross negligence or willful misconduct of Landlord and not due in any part to any act or omission on the part of Tenant or any Tenant Party or any matter beyond Landlord’s reasonable control (any such stoppage of an Essential Service being hereinafter referred to as a “Service Interruption”), and (ii) such Service Interruption continues for more than 5 consecutive business days after Landlord shall have received written notice thereof from Tenant, and (iii) as a result of such Service Interruption, the conduct of Tenant’s normal operations in the Premises are materially and adversely affected, then, to the extent that such Service Interruption is covered by rental interruption insurance carried by Landlord pursuant to this Lease, there shall be an abatement of one day’s Base Rent for each day during which such Service Interruption continues after such 5 business day period; provided, however, that if any part of the Premises is reasonably useable for Tenant’s normal business operations or if Tenant conducts all or any part of its operations in any portion of the Premises notwithstanding such Service Interruption, then the amount of each daily abatement of Base Rent shall only be proportionate to the nature and extent of the interruption of Tenant’s normal operations or ability to use the Premises.  The rights granted to Tenant under this paragraph shall be Tenant’s sole and exclusive remedy resulting from a failure of Landlord to provide services, and Landlord shall not otherwise be liable for any loss or damage suffered or sustained by Tenant resulting from any failure or cessation of services.  For purposes hereof, the term “Essential Services” shall mean the following services:  HVAC service, water, sewer and electricity, but in each case only to the extent that Landlord has an obligation to provide same to Tenant under this Lease.  The provisions of this paragraph shall only apply as long as the original Tenant is the tenant occupying the Premises under this Lease and shall not apply to any assignee or sublessee.

(b)Loading Dock.  Tenant may use the loading dock in common with others entitled thereto at no additional charge during the regular hours of operation of the loading dock, which are 24 hours per day, 7 days per week, subject to downtime for maintenance and repairs.

12.Alterations and Tenant’s Property.  Any alterations, additions, or improvements made to the Premises by or on behalf of Tenant, including additional locks or bolts of any kind or nature upon any doors or windows in the Premises, but excluding installation, removal or realignment of furniture systems (other than removal of furniture systems owned or paid for by Landlord) not involving any modifications to the structure or connections (other than by ordinary plugs or jacks) to Building Systems (as defined in Section 13) (“Alterations”) shall be subject to Landlord’s prior written consent, which may be given or withheld in Landlord’s sole discretion if any such Alteration affects the structure or Building Systems and shall not be otherwise unreasonably withheld, conditioned or delayed.  Tenant may construct nonstructural Alterations in the Premises without Landlord’s prior approval if the cost of any individual Alteration does not exceed $50,000 and the aggregate cost of all such Alterations in any 12 month period does not exceed $100,000 (a “Notice-Only Alteration”), provided Tenant notifies Landlord 

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in writing of such intended Notice-Only Alteration, and such notice shall be accompanied by plans, specifications, work contracts and such other information concerning the nature and cost of the Notice-Only Alteration as may be reasonably requested by Landlord, which notice and accompanying materials shall be delivered to Landlord not less than 15 business days in advance of any proposed construction.  If Landlord approves any Alterations, Landlord may impose such conditions on Tenant in connection with the commencement, performance and completion of such Alterations as Landlord may deem appropriate in Landlord’s reasonable discretion.  Any request for approval shall be in writing, delivered not less than 15 business days in advance of any proposed construction, and accompanied by plans, specifications, bid proposals, work contracts and such other information concerning the nature and cost of the alterations as may be reasonably requested by Landlord, including the identities and mailing addresses of all persons performing work or supplying materials.  Landlord’s right to review plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to ensure that such plans and specifications or construction comply with applicable Legal Requirements.  Tenant shall cause, at its sole cost and expense, all Alterations to comply with insurance requirements and with Legal Requirements and shall implement at its sole cost and expense any alteration or modification required by Legal Requirements as a result of any Alterations.  Tenant shall pay to Landlord, as Additional Rent, on demand an amount equal to the reasonable out-of-pocket costs incurred by Landlord with respect to any Alteration to cover Landlord’s overhead and expenses for plan review, coordination, scheduling and supervision.  Before Tenant begins any Alteration, Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable law.  Tenant shall reimburse Landlord for, and indemnify and hold Landlord harmless from, any expense incurred by Landlord by reason of faulty work done by Tenant or its contractors, delays caused by such work, or inadequate cleanup.  

With respect to any Alterations exceeding $100,000, Landlord shall have the right to require Tenant to furnish security or make other arrangements satisfactory to Landlord to assure payment for the completion of such Alterations work free and clear of liens. With respect to all Alterations, Tenant shall provide (and cause each contractor or subcontractor to provide) certificates of insurance for workers’ compensation and other coverage in amounts and from an insurance company satisfactory to Landlord protecting Landlord against liability for personal injury or property damage during construction.  Upon completion of any Alterations, Tenant shall deliver to Landlord:  (i) sworn statements setting forth the names of all contractors and subcontractors who did the work and final lien waivers from all such contractors and subcontractors; and (ii) “as built” plans for any such Alteration.

Except for Removable Installations (as hereinafter defined), all Installations (as hereinafter defined) shall be and shall remain the property of Landlord during the Term and following the expiration or earlier termination of the Term, shall not be removed by Tenant at any time during the Term, and shall remain upon and be surrendered with the Premises as a part thereof.  Notwithstanding the foregoing, Landlord may, at the time its approval of any such Installation is requested, notify Tenant that Landlord requires that Tenant remove such Installation upon the expiration or earlier termination of the Term, in which event Tenant shall remove such Installation in accordance with the immediately succeeding sentence.  Upon the expiration or earlier termination of the Term, Tenant shall remove (i) all wires, cables or similar equipment which Tenant has installed in the Premises or in the risers or plenums of the Building, (ii) any Installations for which Landlord has given Tenant notice of removal in accordance with the immediately preceding sentence, and (iii) all of Tenant’s Property (as hereinafter defined), and Tenant shall restore and repair any damage caused by or occasioned as a result of such removal, including, without limitation, capping off all such connections behind the walls of the Premises and repairing any holes.  During any restoration period beyond the expiration or earlier termination of the Term, Tenant shall pay Rent to Landlord as provided herein as if said space were otherwise occupied by Tenant.

Subject to the provisions of this paragraph, during the Term, Landlord waives any statutory landlord’s lien and any attachment for Rent on Tenant’s Property and on any Alteration of Tenant that is not required to be surrendered to Landlord at the expiration or sooner termination of the Term of this Lease (collectively, “Personalty”) that Landlord may have or may hereafter acquire. Landlord acknowledges and agrees that Tenant’s Personalty may be leased from an equipment lessor or encumbered by Tenant’s lender (collectively, “Equipment Lessor”) and that Tenant may execute and enter into an equipment lease or security agreement with respect to such Personalty (“Equipment 

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Lease”).  If and to the extent required by any Equipment Lease or Equipment Lessor, Landlord shall execute and deliver to the Equipment Lessor a written consent, waiver and/or acknowledgment which is in form and content reasonably acceptable to Landlord (“Lien Waiver”) in which Landlord (i) acknowledges and agrees that, during the Term, the Personalty which is the subject of the Equipment Lease and described with specificity on an exhibit to the Lien Waiver constitutes the personal property of Tenant (unless contrary to the provisions of this Lease), and shall not be considered to be part of the Premises, regardless of whether or by what means they become attached thereto, (ii) agrees that, during the Term, it shall not claim any interest in such Personalty, and (iii) agrees that Equipment Lessor may enter the Premises for the purpose of removing such Personalty, but only if, in such consent such Equipment Lessor agrees to repair any damage resulting from such removal and to indemnify and hold harmless Landlord from and against any claim or other loss that results from such entry and, agrees, within 3 business days after the expiration or termination of the Term to pay all Rent that would accrue under the Lease if it had not terminated or expired for the period from the expiration or termination of such Lease until 5 business days after such Equipment Lessor relinquishes its right rights to enter into the Premises; provided, further, such Equipment Lessor’s right to enter the Premises shall in any event expire 30 days after the expiration or termination of the Lease in which case the Equipment Lessor and Tenant shall agree that the Personalty shall be deemed abandoned. Such Lien Waiver documents also may contain such other reasonable and customary provisions that are reasonably acceptable to Landlord.  Landlord shall be entitled to be paid as administrative rent a fee of $1,000 per occurrence for its time and effort in preparing and negotiating each Lien Waiver. 

For purposes of this Lease, (x) “Removable Installations” means any items listed on Exhibit F attached hereto and any items agreed by Landlord in writing to be included on Exhibit F in the future, (y) ”Tenant’s Property” means Removable Installations and, other than Installations, any personal property or equipment of Tenant that may be removed without material damage to the Premises, and (z) ”Installations” means all property of any kind paid for with the TI Fund, all Alterations, all fixtures, and all partitions, hardware, built-in machinery, built-in casework and cabinets and other similar additions, equipment, property and improvements built into the Premises so as to become an integral part of the Premises, including, without limitation, fume hoods which penetrate the roof or plenum area, built-in cold rooms, built-in warm rooms, walk-in cold rooms, walk-in warm rooms, deionized water systems, glass washing equipment, autoclaves, chillers, built-in plumbing, electrical and mechanical equipment and systems, and any power generator and transfer switch.

13.Landlord’s Repairs.  Landlord, as an Operating Expense, shall maintain all of the structural and exterior components of the Building, the parking and other Common Areas of the Project, in good repair, reasonable wear and tear and uninsured losses and damages caused by Tenant, or by any of Tenant’s agents, servants, employees, invitees and contractors (collectively, “Tenant Parties”) excluded.  Losses and damages caused by Tenant or any Tenant Party shall be repaired by Landlord, to the extent not covered by insurance, at Tenant’s sole cost and expense.  Landlord reserves the right to stop Building Systems services when reasonably necessary (i) by reason of accident or emergency, or (ii) for planned repairs, alterations or improvements for which Landlord is responsible under this Lease, which are, in the judgment of Landlord, necessary to be made, until said repairs, alterations or improvements shall have been completed.  Landlord shall have no responsibility or liability for failure to supply Building Systems services during any such period of interruption; provided, however, that Landlord shall, except in case of emergency, give Tenant 48 hours advance notice of any planned stoppage of Building Systems services for routine maintenance, repairs, alterations or improvements.  Landlord shall use reasonable efforts to minimize interference with Tenant’s operations in the Premises in connection with the stoppage of Building Systems pursuant to this Section 13.  Tenant shall promptly give Landlord written notice of any repair required by Landlord pursuant to this Section after which Landlord shall make a reasonable effort to promptly and diligently effect such repair.  Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after Tenant’s written notice of the need for such repairs or maintenance.  Tenant waives its rights under any state or local law to terminate this Lease or to make such repairs at Landlord’s expense and agrees that the parties’ respective rights with respect to such matters shall be solely as set forth herein.  Repairs required as the result of fire, earthquake, flood, vandalism, war, or similar cause of damage or destruction shall be controlled by Section 18.

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14.Tenant’s Repairs.  Subject to Section 13 hereof, Tenant, at its expense, shall repair, replace and maintain in good condition all portions of the Premises, including, without limitation, entries, doors, ceilings, interior windows, interior walls, and the interior side of demising walls, HVAC, plumbing, fire sprinklers, elevators and all other building systems serving the Premises (“Building Systems”).  Such repair and replacement may include capital expenditures and repairs whose benefit may extend beyond the Term.  Tenant shall, at its expense, procure and maintain contracts, in form and substance reasonably satisfactory to Landlord, with copies to Landlord, for, and with contractors specializing and experienced in the maintenance and repair of the Building Systems and all other parts of the Premises that Tenant is responsible for under this Lease. Should Tenant fail to make any such repair or replacement or fail to maintain the Premises or maintain any contracts, Landlord shall give Tenant written notice of such failure.  If Tenant fails to commence cure of such failure within 10 business days of Landlord’s notice, and thereafter diligently prosecute such cure to completion, Landlord may perform such work and shall be reimbursed by Tenant within 10 business days after demand therefor; provided, however, that if such failure by Tenant creates or could reasonably create an emergency, Landlord may immediately commence cure of such failure and shall thereafter be entitled to recover the actual, reasonable costs of such cure from Tenant.  Subject to Sections 17 and 18, Tenant shall bear the full uninsured cost of any repair or replacement to any part of the Project that results from damage caused by Tenant or any Tenant Party.

15.Mechanic’s Liens.  Tenant shall discharge, by bond or otherwise, any mechanic’s lien filed against the Premises or against the Project for work claimed to have been done for, or materials claimed to have been furnished to, Tenant within 15 business days after Tenant’s receipt of written notice of the filing thereof, at Tenant’s sole cost and shall otherwise keep the Premises and the Project free from any liens arising out of work performed, materials furnished or obligations incurred by Tenant.  Should Tenant fail to discharge any lien described herein, Landlord shall have the right, but not the obligation, to pay such claim or post a bond or otherwise provide security to eliminate the lien as a claim against title to the Project and the cost thereof shall be immediately due from Tenant as Additional Rent.  If Tenant shall lease or finance the acquisition of office equipment, furnishings, or other personal property of a removable nature utilized by Tenant in the operation of Tenant’s business, Tenant warrants that any Uniform Commercial Code Financing Statement filed as a matter of public record by any lessor or creditor of Tenant will upon its face or by exhibit thereto indicate that such Financing Statement is applicable only to removable personal property of Tenant located within the Premises.  In no event shall the address of the Project be furnished on the statement without qualifying language as to applicability of the lien only to removable personal property, located in an identified suite held by Tenant.  

16.Indemnification.  Tenant hereby indemnifies and agrees to defend, save and hold Landlord harmless from and against any and all Claims for injury or death to persons or damage to property occurring within or about the Premises, arising directly or indirectly out of use or occupancy of the Premises or a breach or default by Tenant in the performance of any of its obligations hereunder, unless caused solely by the willful misconduct or negligence of Landlord or Landlord’s agents, servants, employees or contractors.  Landlord shall not be liable to Tenant for, and Tenant assumes all risk of damage to, personal property (including, without limitation, loss of records kept within the Premises).  Tenant further waives any and all Claims for injury to Tenant’s business or loss of income relating to any such damage or destruction of personal property (including, without limitation, any loss of records).  Landlord shall not be liable for any damages arising from any act, omission or neglect of any tenant in the Project or of any other third party.

Landlord hereby indemnifies and agrees to defend, save and hold Tenant harmless from and against any and all Claims for injury or death to persons or damage to property  sustained or occurring at the Project (but outside of the Premises) caused proximately by the willful misconduct or gross negligence of Landlord.

17.Insurance.  Landlord shall maintain all risk property and, if applicable, sprinkler damage insurance covering the full replacement cost of the Project.  Landlord shall further procure and maintain commercial general liability insurance with a single loss limit of not less than $2,000,000 for bodily injury and property damage with respect to the Project.  Landlord may, but is not obligated to, maintain such 

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other insurance and additional coverages as it may deem necessary, including, but not limited to, flood, environmental hazard and earthquake, loss or failure of building equipment, errors and omissions, rental loss during the period of repair or rebuilding, workers’ compensation insurance and fidelity bonds for employees employed to perform services and insurance for any improvements installed by Tenant or which are in addition to the standard improvements customarily furnished by Landlord without regard to whether or not such are made a part of the Project.  All such insurance shall be included as part of the Operating Expenses.  The Project may be included in a blanket policy (in which case the cost of such insurance allocable to the Project will be determined by Landlord based upon the insurer’s cost calculations).  Tenant shall also reimburse Landlord for any increased premiums or additional insurance which Landlord reasonably documents to be as a result of Tenant’s particular use of the Premises and provided that Tenant has a reasonable opportunity to cease said particular use/activity prior to incurring any such costs.  

Tenant, at its sole cost and expense, shall maintain during the Term:  all risk property insurance with business interruption and extra expense coverage, covering the full replacement cost of all property and improvements installed or placed in the Premises by Tenant at Tenant’s expense; workers’ compensation insurance with no less than the minimum limits required by law; employer’s liability insurance with such limits as required by law; and commercial general liability insurance, with a minimum limit of not less than $4,000,000 per occurrence for bodily injury and property damage with respect to the Premises.  The commercial general liability insurance policy shall name Alexandria Real Estate Equities, Inc., and Landlord, its officers, directors, employees, managers, agents, invitees and contractors (collectively, “Landlord Parties”), as additional insureds; insure on an occurrence and not a claims-made basis; be issued by insurance companies which have a rating of not less than policyholder rating of A and financial category rating of at least Class X in “Best’s Insurance Guide”; shall not be cancelable for nonpayment of premium unless 30 days prior written notice shall have been given to Landlord from the insurer; not contain a hostile fire exclusion; contain a contractual liability endorsement; and provide primary coverage to Landlord (any policy issued to Landlord providing duplicate or similar coverage shall be deemed excess over Tenant’s policies). Copies of such policies (if requested  by Landlord), or certificates of insurance showing the limits of coverage required hereunder and showing Landlord as an additional insured, along with reasonable evidence of the payment of premiums for the applicable period, shall be delivered to Landlord by Tenant prior to (i) the earlier to occur of  (x) the Commencement Date, or (y) the date that Tenant accesses the Premises under this Lease, and (ii) each renewal of said insurance.  Tenant’s policy may be a “blanket policy” with an aggregate per location endorsement which specifically provides that the amount of insurance shall not be prejudiced by other losses covered by the policy.  Tenant shall, at least 5 days prior to the expiration of such policies, furnish Landlord with renewal certificates.

In each instance where insurance is to name Landlord as an additional insured, Tenant shall upon written request of Landlord also designate and furnish certificates so evidencing Landlord as additional insured to:  (i) any lender of Landlord holding a security interest in the Project or any portion thereof, (ii) the landlord under any lease wherein Landlord is tenant of the real property on which the Project is located, if the interest of Landlord is or shall become that of a tenant under a ground or other underlying lease rather than that of a fee owner, and/or (iii) any management company retained by Landlord to manage the Project.

The property insurance obtained by Landlord and Tenant shall include a waiver of subrogation by the insurers and all rights based upon an assignment from its insured, against Landlord or Tenant, and their respective officers, directors, employees, managers, agents, invitees and contractors (“Related Parties”), in connection with any loss or damage thereby insured against.  Neither party nor its respective Related Parties shall be liable to the other for loss or damage caused by any risk insured against under property insurance required to be maintained hereunder, and each party waives any claims against the other party, and its respective Related Parties, for such loss or damage.  The failure of a party to insure its property shall not void this waiver.  Landlord and its respective Related Parties shall not be liable for, and Tenant hereby waives all claims against such parties for, business interruption and losses occasioned thereby sustained by Tenant or any person claiming through Tenant resulting from any accident or occurrence in or upon the Premises or the Project from any cause whatsoever.  If the 

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foregoing waivers shall contravene any law with respect to exculpatory agreements, the liability of Landlord or Tenant shall be deemed not released but shall be secondary to the other’s insurer.

Landlord may require insurance policy limits to be raised to conform with requirements of Landlord’s lender and/or to bring coverage limits to levels then being generally required of new tenants within the Project; provided, however, that the increased amount of coverage is consistent with coverage amounts then being required by institutional owners of similar projects with tenants occupying similar size premises in the geographical area in which the Project is located.

18.Restoration.  If, at any time during the Term, the Project or the Premises are damaged or destroyed by a fire or other casualty, Landlord shall notify Tenant within 60 days after discovery of such damage as to the amount of time Landlord reasonably estimates it will take to restore the Project or the Premises, as applicable (the “Restoration Period”).  If the Restoration Period is reasonably estimated to exceed 9 months (the “Maximum Restoration Period”), Landlord may, in such notice, elect to terminate this Lease as of the date that is 75 days after the date of discovery of such damage or destruction; provided, however, that notwithstanding Landlord’s election to restore, Tenant may elect to terminate this Lease by written notice to Landlord delivered within 10 business days of receipt of a notice from Landlord estimating a Restoration Period for the Premises longer than the Maximum Restoration Period.  Unless either Landlord or Tenant so elects to terminate this Lease, Landlord shall, subject to receipt of sufficient insurance proceeds (with any deductible to be treated as a current Operating Expense), promptly restore the Premises (excluding the improvements installed by Tenant or by Landlord and paid for by Tenant unless covered by the insurance Landlord maintains as an Operating Expense hereunder, in which case such improvements shall be included, to the extent of such insurance proceeds, in Landlord’s restoration), subject to delays arising from the collection of insurance proceeds, from Force Majeure events or as needed to obtain any license, clearance or other authorization of any kind required to enter into and restore the Premises issued by any Governmental Authority having jurisdiction over the use, storage, handling, treatment, generation, release, disposal, removal or remediation of Hazardous Materials (as defined in Section 30) in, on or about the Premises (collectively referred to herein as “Hazardous Materials Clearances”); provided, however, that if repair or restoration of the Premises is not substantially complete as of the end of the Maximum Restoration Period or, if longer, the Restoration Period, Landlord may, in its sole and absolute discretion, elect not to proceed with such repair and restoration, or Tenant may by written notice to Landlord delivered within 10 business days of the expiration of the Maximum Restoration Period or, if longer, the Restoration Period, elect to terminate this Lease, in which event Landlord shall be relieved of its obligation to make such repairs or restoration and this Lease shall terminate as of the date that is 75 days after the later of:  (i) discovery of such damage or destruction, or (ii) the date all required Hazardous Materials Clearances are obtained, but Landlord shall retain any Rent paid and the right to any Rent payable by Tenant prior to such election by Landlord or Tenant.

Tenant, at its expense, shall promptly perform, subject to delays arising from the collection of insurance proceeds, from Force Majeure (as defined in Section 34) events or to obtain Hazardous Material Clearances, all repairs or restoration deemed necessary by Tenant in accordance with its then current operations and not required to be done by Landlord and shall promptly re-enter the Premises and commence doing business in accordance with this Lease.  Notwithstanding the foregoing, either Landlord or Tenant may terminate this Lease upon written notice to the other if the Premises are damaged during the last year of the Term and Landlord reasonably estimates that it will take more than 2 months to repair such damage; provided, however, that such notice is delivered within 10 business days after the date that Landlord provides Tenant with written notice of the estimated Restoration Period.  Notwithstanding anything to the contrary contained herein, Landlord shall also have the right to terminate this Lease if insurance proceeds are not available for such restoration (provided that such unavailability of proceeds is not the result of Landlord’s failure to maintain the insurance policies required to be maintained by Landlord pursuant to Section 17).  Rent shall be abated from the date all required Hazardous Material Clearances are obtained until the Premises are repaired and restored, in the proportion which the area of the Premises, if any, which is not usable by Tenant bears to the total area of the Premises, unless Landlord provides Tenant with other space during the period of repair that is suitable for the temporary conduct of Tenant’s business.  In the event that no Hazardous Material Clearances are required to be 

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obtained by Tenant with respect to the Premises, rent abatement shall commence on the date of discovery of the damage or destruction.  Such abatement shall be the sole remedy of Tenant, and except as provided in this Section 18, Tenant waives any right to terminate the Lease by reason of damage or casualty loss.

The provisions of this Lease, including this Section 18, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, or any other portion of the Project, and any statute or regulation which is now or may hereafter be in effect shall have no application to this Lease or any damage or destruction to all or any part of the Premises or any other portion of the Project, the parties hereto expressly agreeing that this Section 18 sets forth their entire understanding and agreement with respect to such matters.

19.Condemnation.  If the whole or any material part of the Premises or the Project is taken for any public or quasi-public use under governmental law, ordinance, or regulation, or by right of eminent domain, or by private purchase in lieu thereof (a “Taking” or “Taken”), and the Taking would in Landlord’s reasonable judgment, would materially interfere with or impair Landlord’s ownership or operation of the Project or would in the reasonable judgment of Landlord and Tenant either prevent or materially interfere with Tenant’s use of the Premises (as resolved, if the parties are unable to agree, by arbitration by a single arbitrator with the qualifications and experience appropriate to resolve the matter and appointed pursuant to and acting in accordance with the rules of the American Arbitration Association), then upon written notice by Landlord or Tenant to the other, this Lease shall terminate and Rent shall be apportioned as of said date.  If part of the Premises shall be Taken, and this Lease is not terminated as provided above, Landlord shall promptly restore the Premises and the Project as nearly as is commercially reasonable under the circumstances to their condition prior to such partial Taking and the rentable square footage of the Building, the rentable square footage of the Premises, Tenant’s Share of Operating Expenses and the Rent payable hereunder during the unexpired Term shall be reduced to such extent as may be fair and reasonable under the circumstances.  Upon any such Taking, Landlord shall be entitled to receive the entire price or award from any such Taking without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant’s interest, if any, in such award.  Tenant shall have the right, to the extent that same shall not diminish Landlord’s award, to make a separate claim against the condemning authority (but not Landlord) for such compensation as may be separately awarded or recoverable by Tenant for moving expenses and damage to Tenant’s trade fixtures, if a separate award for such items is made to Tenant.  Tenant hereby waives any and all rights it might otherwise have pursuant to any provision of state law to terminate this Lease upon a partial Taking of the Premises or the Project.

20.Events of Default.  Each of the following events shall be a default (“Default”) by Tenant under this Lease:

(a)Payment Defaults.  Tenant shall fail to pay any installment of Rent or any other payment hereunder within 5 business days after receipt of written notice of the delinquency; provided, however, that Landlord will give Tenant notice and an opportunity to cure any failure to pay Rent within 5 days of any such notice not more than once in any 12 month period and Tenant agrees that such notice shall be in lieu of and not in addition to, or shall be deemed to be, any notice required by law.

(b)Insurance.  Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or shall be reduced or materially changed, or Landlord shall receive a notice of nonrenewal of any such insurance and Tenant shall fail to obtain replacement insurance before the expiration of the current coverage.

(c)Abandonment.  Tenant shall abandon the Premises.  Tenant shall not be deemed to have abandoned the Premises if (i) Tenant provides Landlord with reasonable advance notice prior to vacating and, at the time of vacating the Premises, Tenant completes Tenant’s obligations with respect to the Surrender Plan in compliance with Section 28, (ii) Tenant has made reasonable arrangements with 

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Landlord for the security of the Premises for the balance of the Term, and (iii) Tenant continues during the balance of the Term to satisfy all of its obligations under the Lease as they come due.

(d)Improper Transfer.  Tenant shall assign, sublease or otherwise transfer or attempt to transfer all or any portion of Tenant’s interest in this Lease or the Premises except as expressly permitted herein, or Tenant’s interest in this Lease shall be attached, executed upon, or otherwise judicially seized and such action is not released within 90 days of the action.

(e)Liens.  Tenant shall fail to discharge or otherwise obtain the release of any lien placed upon the Premises in violation of this Lease within 15 business days after Tenant’s receipt of written notice that such lien is filed against the Premises.

(f)Insolvency Events.  Tenant or any guarantor or surety of Tenant’s obligations hereunder shall:  (A) make a general assignment for the benefit of creditors; (B) commence any case, proceeding or other action seeking to have an order for relief entered on its behalf as a debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or of any substantial part of its property (collectively a “Proceeding for Relief”); (C) become the subject of any Proceeding for Relief which is not dismissed within 90 days of its filing or entry; or (D) die or suffer a legal disability (if Tenant, guarantor, or surety is an individual) or be dissolved or otherwise fail to maintain its legal existence (if Tenant, guarantor or surety is a corporation, partnership or other entity).

(g)Estoppel Certificate or Subordination Agreement.  Tenant fails to execute any document required from Tenant under Sections 23 or 27 within 5 days after a second notice requesting such document.

(h)Other Defaults.  Tenant shall fail to comply with any provision of this Lease other than those specifically referred to in this Section 20, and, except as otherwise expressly provided herein, such failure shall continue for a period of 30 days after written notice thereof from Landlord to Tenant.

Any notice given under Section 20(h) hereof shall:  (i) specify the alleged default, (ii) demand that Tenant cure such default, (iii) be in lieu of, and not in addition to, or shall be deemed to be, any notice required under any provision of applicable law, and (iv) not be deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such notice; provided that if the nature of Tenant’s default pursuant to Section 20(h) is such that it cannot be cured by the payment of money and reasonably requires more than 30 days to cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said 30 day period and thereafter diligently prosecutes the same to completion; provided, however, that such cure shall be completed no later than 90 days from the date of Landlord’s notice.

21.Landlord’s Remedies.

(a)Payment By Landlord; Interest.  Upon a Default by Tenant hereunder, Landlord may, without waiving or releasing any obligation of Tenant hereunder, make such payment or perform such act.  All sums so paid or incurred by Landlord, together with interest thereon, from the date such sums were paid or incurred, at the annual rate equal to 12% per annum or the highest rate permitted by law (the “Default Rate”), whichever is less, shall be payable to Landlord on demand as Additional Rent.  

(b)Late Payment Rent.  Late payment by Tenant to Landlord of Rent and other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult and impracticable to ascertain.  Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on Landlord under any Mortgage covering the Premises.  Therefore, if any installment of Rent due from Tenant is not received by Landlord within 5 days after the date such payment is due, Tenant shall pay to Landlord an additional sum equal to 6% of the overdue Rent as a late charge. Notwithstanding the foregoing, before assessing a late charge 

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the first time in any calendar year, Landlord shall provide Tenant written notice of the delinquency and will waive the right if Tenant pays such delinquency within 5 days thereafter.  The parties agree that this late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.  In addition to the late charge, Rent not paid when due shall bear interest at the Default Rate from the 5th day after the date due until paid.

(c)Remedies.  Upon the occurrence of a Default, Landlord, at its option, without further notice or demand to Tenant, shall have in addition to all other rights and remedies provided in this Lease, at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever.

(i)Terminate this Lease, or at Landlord’s option, Tenant’s right to possession only, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor;

(ii)Upon any termination of this Lease, whether pursuant to the foregoing Section 21(c)(i) or otherwise, Landlord may recover from Tenant the following:

(A)The amount of any unpaid rent which has been earned at the time of such termination; plus

(B)The amount of the unpaid rent for the balance of the Term; plus

(C)Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including, but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and

(D)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.

The term “rent” as used in this Section 21 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others.  As used in Section 21(c)(ii)(A) above, the “amount” shall be computed by allowing interest at the Default Rate.

(iii)Landlord may continue this Lease in effect after Tenant’s Default and recover rent as it becomes due (Landlord and Tenant hereby agreeing that Tenant has the right to sublet or assign hereunder, subject only to reasonable limitations).  Accordingly, if Landlord does not elect to terminate this Lease following a Default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies hereunder, including the right to recover all Rent as it becomes due.

(iv)Whether or not Landlord elects to terminate this Lease following a Default by Tenant, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements.  Upon Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by 

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Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

(v)Independent of the exercise of any other remedy of Landlord hereunder or under applicable law, Landlord may conduct an environmental test of the Premises as generally described in Section 30(d) hereof, at Tenant’s expense.

(d)Effect of Exercise.  Exercise by Landlord of any remedies hereunder or otherwise available shall not be deemed to be an acceptance of surrender of the Premises and/or a termination of this Lease by Landlord, it being understood that such surrender and/or termination can be effected only by the express written agreement of Landlord and Tenant.  Any law, usage, or custom to the contrary notwithstanding, Landlord shall have the right at all times to enforce the provisions of this Lease in strict accordance with the terms hereof; and the failure of Landlord at any time to enforce its rights under this Lease strictly in accordance with same shall not be construed as having created a custom in any way or manner contrary to the specific terms, provisions, and covenants of this Lease or as having modified the same and shall not be deemed a waiver of Landlord’s right to enforce one or more of its rights in connection with any subsequent default.  A receipt by Landlord of Rent or other payment with knowledge of the breach of any covenant hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by Landlord.  To the greatest extent permitted by law, Tenant waives the service of notice of Landlord’s intention to re-enter, re-take or otherwise obtain possession of the Premises as provided in any statute, or to institute legal proceedings to that end, and also waives all right of redemption in case Tenant shall be dispossessed by a judgment or by warrant of any court or judge.  Any reletting of the Premises or any portion thereof shall be on such terms and conditions as Landlord in its sole discretion may determine.  Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s failure to relet the Premises or collect rent due in respect of such reletting or otherwise to mitigate any damages arising by reason of Tenant’s Default.  Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s failure to relet the Premises or collect rent due in respect of such reletting or otherwise to mitigate any damages arising by reason of Tenant’s Default.  Landlord shall, however, use commercially reasonable efforts to mitigate the damages arising by reason of the termination of this Lease as a result of a Default by Tenant; provided, however, that in no event shall mitigation require Landlord to consider, among other things, (i) any tenant which does not satisfy Landlord’s then current underwriting criteria, in the exercise of Landlord’s sole and absolute discretion, for comparable size premises, (ii) subdividing the Premises unless Landlord elects in its sole and absolute discretion to do so, (iii) any change in use of the Premises or any alterations which would lessen the value of the leasehold improvements, (iv) granting any tenant improvement allowances, free rent or other lease concessions, or (v) accepting any tenant if Landlord would have the right to reject such tenant if such tenant were a proposed assignee or sublessee of Tenant including, without limitation, considering the factors described in Section 22(b).

Notwithstanding any contrary provision of this Lease, neither party shall be liable to the other party for any special, indirect, consequential or punitive damages arising under this Lease; provided that this sentence shall not apply to Landlord’s damages (x) as provided for in Section 8, and/or (y) in connection with Tenant’s obligations as more fully set forth in Section 30.  In no event shall the foregoing limit the damages to which Landlord is entitled under Section 21(c)(ii)(A)-(D).

22.Assignment and Subletting.

(a)General Prohibition.  Without Landlord’s prior written consent subject to and on the conditions described in this Section 22 (including, without limitation, the terms and conditions of Section 22(b) below), Tenant shall not, directly or indirectly, voluntarily or by operation of law, assign this Lease or sublease the Premises or any part thereof or mortgage, pledge, or hypothecate its leasehold interest or grant any concession or license within the Premises, and any attempt to do any of the foregoing shall be void and of no effect.  If Tenant is a corporation, partnership or limited liability company, the shares or other ownership interests thereof which are not actively traded upon a stock exchange or in the over-the-

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counter market, a transfer or series of transfers whereby more than 50% of the issued and outstanding shares or other ownership interests of such corporation are, or voting control is, transferred (but excepting transfers upon deaths of individual owners) from a person or persons or entity or entities which were owners thereof at time of execution of this Lease to persons or entities who were not owners of shares or other ownership interests of the corporation, partnership or limited liability company at time of execution of this Lease, shall be deemed an assignment of this Lease requiring the consent of Landlord as provided in this Section 22.  

(b)Permitted Transfers.  If Tenant desires to assign, sublease, hypothecate or otherwise transfer this Lease or sublet the Premises other than pursuant to a Permitted Assignment (as defined below), then at least 15 business days, but not more than 45 business days, before the date Tenant desires the assignment or sublease to be effective (the “Assignment Date”), Tenant shall give Landlord a notice (the “Assignment Notice”) containing such information about the proposed assignee or sublessee, including the proposed use of the Premises and any Hazardous Materials proposed to be used, stored handled, treated, generated in or released or disposed of from the Premises, the Assignment Date, any relationship between Tenant and the proposed assignee or sublessee, and all material terms and conditions of the proposed assignment or sublease, including a copy of any proposed assignment or sublease in its final form, and such other information as Landlord may deem reasonably necessary or appropriate to its consideration whether to grant its consent. Landlord may, by giving written notice to Tenant within 15 business days after receipt of the Assignment Notice:  (i) grant such consent (provided that Landlord shall further have the right to review and approve or disapprove the proposed form of sublease prior to the effective date of any such subletting), (ii) refuse such consent, in its reasonable discretion; or (iii) if the proposed assignment or subletting concerns the entire Premises for the remainder (or substantially all of the remainder) of the Term, terminate this Lease with respect to the space described in the Assignment Notice as of the Assignment Date (an “Assignment Termination”). Among other reasons, it shall be reasonable for Landlord to withhold its consent in any of these instances:  (1) the proposed assignee or subtenant is a governmental agency; (2) in Landlord’s reasonable judgment, the use of the Premises by the proposed assignee or subtenant would entail any alterations that would materially lessen the value of the leasehold improvements in the Premises, or would require materially increased services by Landlord; (3) in Landlord’s reasonable judgment, the proposed assignee or subtenant lacks the creditworthiness to support the financial obligations it will incur under the proposed assignment or sublease; (4) in Landlord’s reasonable judgment, the character, reputation, or business of the proposed assignee or subtenant is inconsistent with the desired tenant-mix or the quality of other tenancies in the Project or is inconsistent with the type and quality of the nature of the Building; (5) Landlord has experienced previous defaults by or is in litigation with the proposed assignee or subtenant; (6) the use of the Premises by the proposed assignee or subtenant will violate any applicable Legal Requirement; (7) the proposed assignee or subtenant is an entity with whom Landlord is negotiating to lease space in the Project; or (9) the assignment or sublease is prohibited by Landlord’s lender. If Landlord delivers notice of its election to exercise an Assignment Termination, Tenant shall have the right to withdraw such Assignment Notice by written notice to Landlord of such election within 5 business days after Landlord’s notice electing to exercise the Assignment Termination.  If Tenant withdraws such Assignment Notice, this Lease shall continue in full force and effect.  If Tenant does not withdraw such Assignment Notice, this Lease, and the term and estate herein granted, shall terminate as of the Assignment Date with respect to the space described in such Assignment Notice.  No failure of Landlord to exercise any such option to terminate this Lease, or to deliver a timely notice in response to the Assignment Notice, shall be deemed to be Landlord’s consent to the proposed assignment, sublease or other transfer.  Tenant shall pay to Landlord a fee equal to One Thousand Five Hundred Dollars ($1,500) in connection with its consideration of any Assignment Notice and/or its preparation or review of any consent documents.  Notwithstanding the foregoing, Landlord’s consent to an assignment of this Lease or a subletting of any portion of the Premises to any entity controlling, controlled by or under common control with Tenant (a “Permitted Assignment”) shall not be required, provided that Landlord shall have the right to approve the form of any such sublease or assignment.  Notwithstanding the foregoing, Landlord’s consent to an assignment of this Lease or a subletting of any portion of the Premises to any entity controlling, controlled by or under common control with Tenant (a “Control Permitted Assignment”) shall not be required, provided that Landlord shall have the right to approve the form of any such sublease or assignment.  In addition, Tenant shall have the right to assign this Lease, 

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upon 30 days prior written notice to Landlord but without obtaining Landlord’s prior written consent, to a corporation or other entity which is a successor-in-interest to Tenant, by way of merger, consolidation or corporate reorganization, or by the purchase of all or substantially all of the assets or the ownership interests of Tenant provided that (i) such merger or consolidation, or such acquisition or assumption, as the case may be, is for a good business purpose and not principally for the purpose of transferring the Lease, and (ii) the net worth of not less than $250,000,000, and (iii) such assignee shall agree in writing to assume all of the terms, covenants and conditions of this Lease (a “Corporate Permitted Assignment”).  Control Permitted Assignments and Corporate Permitted Assignments are hereinafter referred to as “Permitted Assignments.”

(c)Additional Conditions.  As a condition to any such assignment or subletting, whether or not Landlord’s consent is required, Landlord may require:

(i)that any assignee or subtenant agree, in writing at the time of such assignment or subletting, that if Landlord gives such party notice that Tenant is in Default under this Lease, such party shall thereafter make all payments otherwise due Tenant directly to Landlord, which payments will be received by Landlord without any liability except to credit such payment against those due under the Lease, and any such third party shall agree to attorn to Landlord or its successors and assigns should this Lease be terminated for any reason; provided, however, in no event shall Landlord or its successors or assigns be obligated to accept such attornment; and

(ii)A list of Hazardous Materials, certified by the proposed assignee or sublessee to be true and correct, which the proposed assignee or sublessee intends to use, store, handle, treat, generate in or release or dispose of from the Premises, together with copies of all documents relating to such use, storage, handling, treatment, generation, release or disposal of Hazardous Materials by the proposed assignee or subtenant in the Premises or on the Project, prior to the proposed assignment or subletting, including, without limitation:  permits; approvals; reports and correspondence; storage and management plans; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given its written consent to do so, which consent may be withheld in Landlord’s sole and absolute discretion); and all closure plans or any other documents required by any and all federal, state and local Governmental Authorities for any storage tanks installed in, on or under the Project for the closure of any such tanks.  Neither Tenant nor any such proposed assignee or subtenant is required, however, to provide Landlord with any portion(s) of the such documents containing information of a proprietary nature which, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities.

(d)No Release of Tenant, Sharing of Excess Rents.  Notwithstanding any assignment or subletting, Tenant and any guarantor or surety of Tenant’s obligations under this Lease shall at all times remain fully and primarily responsible and liable for the payment of Rent and for compliance with all of Tenant’s other obligations under this Lease.  If the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment plus any bonus or other consideration therefor or incident thereto in any form) exceeds the sum of  the rental payable under this Lease, (excluding however, any Rent payable under this Section) and actual and reasonable brokerage fees, legal costs and any design or construction fees directly related to and required pursuant to the terms of any such sublease) (“Excess Rent”), then Tenant shall be bound and obligated to pay Landlord as Additional Rent hereunder 50% of such Excess Rent within 10 days following receipt thereof by Tenant.  If Tenant shall sublet the Premises or any part thereof, Tenant hereby immediately and irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent from any such subletting, and Landlord as assignee and as attorney-in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply it toward Tenant’s obligations under this Lease; except that, until the occurrence of a Default, Tenant shall have the right to collect and retain such rent.

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(e)No Waiver.  The consent by Landlord to an assignment or subletting shall not relieve Tenant or any assignees of this Lease or any sublessees of the Premises from obtaining the consent of Landlord to any further assignment or subletting nor shall it release Tenant or any assignee or sublessee of Tenant from full and primary liability under the Lease.  The acceptance of Rent hereunder, or the acceptance of performance of any other term, covenant, or condition thereof, from any other person or entity shall not be deemed to be a waiver of any of the provisions of this Lease or a consent to any subletting, assignment or other transfer of the Premises.

(f)Prior Conduct of Proposed Transferee.  Notwithstanding any other provision of this Section 22, if (i) the proposed assignee or sublessee of Tenant has been required by any prior landlord, lender or Governmental Authority to take remedial action in connection with Hazardous Materials contaminating a property, where the contamination resulted from such party’s action or use of the property in question, (ii) the proposed assignee or sublessee is subject to an enforcement order issued by any Governmental Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority), or (iii) because of the existence of a pre-existing environmental condition in the vicinity of or underlying the Project, the risk that Landlord would be targeted as a responsible party in connection with the remediation of such pre-existing environmental condition would be materially increased or exacerbated by the proposed use of Hazardous Materials by such proposed assignee or sublessee, Landlord shall have the absolute right to refuse to consent to any assignment or subletting to any such party.

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

Landlord shall, within 10 business days of written notice from Tenant, execute an estoppel certificate (which may include good faith and factually correct comments by Landlord) to Tenant’s bona fide third party lender, an assignee pursuant to a Permitted Assignment, or an approved subtenant or assignee:  (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect) and the dates to which the rental and other charges are paid in advanced, if any, (ii) acknowledging that there are not, to Landlord’s actual knowledge, Defaults on the part of Tenant hereunder, or specifying such Defaults if any are claimed and (iii) setting forth such further information with respect to the status of this Lease or the Premises as may be reasonably requested thereon.

24.Quiet Enjoyment.  So long as Tenant is not in Default under this Lease, Tenant shall, subject to the terms of this Lease, at all times during the Term, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord.

25.Prorations.  All prorations required or permitted to be made hereunder shall be made on the basis of a 360 day year and 30 day months.

26.Rules and Regulations.  Tenant shall, at all times during the Term and any extension thereof, comply with all reasonable rules and regulations at any time or from time to time established by 

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Landlord covering use of the Premises and the Project.  The current rules and regulations are attached hereto as Exhibit E.  If there is any conflict between said rules and regulations and other provisions of this Lease, the terms and provisions of this Lease shall control.  Landlord shall not have any liability or obligation for the breach of any rules or regulations by other tenants in the Project and shall not enforce such rules and regulations in a discriminatory manner.

27.Subordination.  This Lease and Tenant’s interest and rights hereunder are hereby made and shall be subject and subordinate at all times to the lien of any Mortgage now existing or hereafter created on or against the Project or the Premises, and all amendments, restatements, renewals, modifications, consolidations, refinancing, assignments and extensions thereof, without the necessity of any further instrument or act on the part of Tenant; provided, however that so long as there is no Default hereunder, Tenant’s right to possession of the Premises shall not be disturbed by the Holder of any such Mortgage.  Tenant agrees, at the election of the Holder of any such Mortgage, to attorn to any such Holder.  Tenant agrees upon demand to execute, acknowledge and deliver such instruments, confirming such subordination, and such instruments of attornment as shall be requested by any such Holder, provided any such instruments contain appropriate non-disturbance provisions assuring Tenant’s quiet enjoyment of the Premises as set forth in Section 24 hereof.  Notwithstanding the foregoing, any such Holder may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by notice in writing to Tenant, and thereupon this Lease shall be deemed prior to such Mortgage without regard to their respective dates of execution, delivery or recording and in that event such Holder shall have the same rights with respect to this Lease as though this Lease had been executed prior to the execution, delivery and recording of such Mortgage and had been assigned to such Holder.  The term “Mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “Holder” of a Mortgage shall be deemed to include the beneficiary under a deed of trust.  As of the date of this Lease, there is no existing Mortgage encumbering  the Project.  

Upon written request from Tenant, Landlord shall obtain, at no cost to Tenant, for execution by Tenant a commercially reasonable form of non-disturbance and attornment agreement executed by the Holder of any future Mortgage with a lien on the Project which provides, among other things, that so long as Tenant is not in Default of its obligations under this Lease, foreclosure or other enforcement of such Mortgage shall not terminate this Lease and the successor to Landlord’s interest in the Project shall recognize this Lease and Tenant’s right to possession of the Premises.  If the Holder is an institutional lender, Tenant agrees that a non-disturbance and attornment agreement on the form customarily used by such Holder shall be deemed acceptable to Tenant if it provides that so long as Tenant is not in Default of its obligations under this Lease, foreclosure or other enforcement of such Mortgage shall not terminate this Lease and the successor to Landlord’s interest in the Project shall recognize this Lease and Tenant’s right to possession of the Premises.

28.Surrender.  Upon the expiration of the Term or earlier termination of Tenant’s right of possession, Tenant shall surrender the Premises to Landlord in the same condition as received, subject to any Alterations or Installations permitted by Landlord to remain in the Premises, free of Hazardous Materials brought upon, kept, used, stored, handled, treated, generated in, or released or disposed of from, the Premises by any person other than a Landlord Party (collectively, “Tenant HazMat Operations”) and released of all Hazardous Materials Clearances, broom clean, ordinary wear and tear and casualty loss and condemnation covered by Sections 18 and 19 excepted.  At least 3 months prior to the surrender of the Premises, Tenant shall deliver to Landlord a narrative description of the actions proposed (or required by any Governmental Authority) to be taken by Tenant in order to surrender the Premises (including any Installations permitted by Landlord to remain in the Premises) at the expiration or earlier termination of the Term, free from any residual impact from the Tenant HazMat Operations and otherwise released for unrestricted use and occupancy (the “Surrender Plan”).  Such Surrender Plan shall be accompanied by a current listing of (i) all Hazardous Materials licenses and permits held by or on behalf of any Tenant Party with respect to the Premises, and (ii) all Hazardous Materials used, stored, handled, treated, generated, released or disposed of from the Premises, and shall be subject to the review and approval of Landlord’s environmental consultant.  In connection with the review and approval of the Surrender Plan, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant 

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such additional non-proprietary information concerning Tenant HazMat Operations as Landlord shall reasonably request.  On or before such surrender, Tenant shall deliver to Landlord reasonable evidence that the approved Surrender Plan shall have been satisfactorily completed and Landlord shall have the right, subject to reimbursement at Tenant’s expense as set forth below, to cause Landlord’s environmental consultant to inspect the Premises and perform such additional procedures as may be deemed reasonably necessary to confirm that the Premises are, as of the effective date of such surrender or early termination of the Lease, free from any residual impact from Tenant HazMat Operations.  Tenant shall reimburse Landlord, as Additional Rent, for the actual out-of pocket expense incurred by Landlord for Landlord’s environmental consultant to review and approve the Surrender Plan and to visit the Premises and verify satisfactory completion of the same, which cost shall not exceed $5,000.  Landlord shall have the unrestricted right to deliver such Surrender Plan and any report by Landlord’s environmental consultant with respect to the surrender of the Premises to third parties; provided, however, that Landlord instructs such parties to treat the same as confidential.  If the  Surrender Plan or Landlord's environmental consultant's report discloses information concerning Tenant's HazMat Operations other than non-proprietary information, then, upon Tenant's written request to Landlord, disclosure of the same to third parties shall be subject to the execution by such third parties of a commercially reasonable form of non-disclosure agreement.

If Tenant shall fail to prepare or submit a Surrender Plan approved by Landlord, or if Tenant shall fail to complete the approved Surrender Plan, or if such Surrender Plan, whether or not approved by Landlord, shall fail to adequately address any residual effect of Tenant HazMat Operations in, on or about the Premises, Landlord shall have the right to take such actions as Landlord may deem reasonable or appropriate to assure that the Premises and the Project are surrendered free from any residual impact from Tenant HazMat Operations, the reasonable cost of which actions shall be reimbursed by Tenant as Additional Rent, without regard to the limitation set forth in the first paragraph of this Section 28.

Tenant shall immediately return to Landlord all keys and/or access cards to parking, the Project, restrooms or all or any portion of the Premises furnished to or otherwise procured by Tenant.  If any such access card or key is lost, Tenant shall pay to Landlord, at Landlord’s election, either the cost of replacing such lost access card or key or the cost of reprogramming the access security system in which such access card was used or changing the lock or locks opened by such lost key.  Any Tenant’s Property, Alterations and property not so removed by Tenant as permitted or 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/or disposition of such property.  All obligations of Tenant hereunder not fully performed as of the termination of the Term, including the obligations of Tenant under Section 30 hereof, shall survive the expiration or earlier termination of the Term, including, without limitation, indemnity obligations, payment obligations with respect to Rent and obligations concerning the condition and repair of the Premises.

29.Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY LAW, TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

30.Environmental Requirements.

(a)Prohibition/Compliance/Indemnity.  Tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be brought upon, kept, used, stored, handled, treated, generated  in or about, or released or disposed of from, the Premises or the Project in violation of applicable Environmental Requirements (as hereinafter defined) by Tenant or any Tenant Party.  If Tenant breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials in the Premises during the Term or any holding over results in contamination of the Premises, the Project or any adjacent property or if contamination of the Premises, the Project or any adjacent property by Hazardous Materials 

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brought into, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises by anyone other than Landlord and Landlord’s employees, agents and contractors otherwise occurs during the Term or any holding over, Tenant hereby indemnifies and shall defend and hold Landlord, its officers, directors, employees, agents and contractors harmless from any and all actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom), costs, claims, damages (including, without limitation, punitive damages and damages based upon diminution in value of the Premises or the Project, or the loss of, or restriction on, use of the Premises or any portion of the Project), expenses (including, without limitation, attorneys’, consultants’ and experts’ fees, court costs and amounts paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal injury, property damage, or contamination of, or adverse effects upon, the environment, water tables or natural resources), liabilities or losses (collectively, “Environmental Claims”) which arise during or after the Term as a result of such contamination.  This indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, treatment, remedial, removal, or restoration work required by any federal, state or local Governmental Authority because of Hazardous Materials present in the air, soil or ground water above, on, or under the Premises.  Without limiting the foregoing, if the presence of any Hazardous Materials on the Premises, the Building, the Project or any adjacent property caused or permitted by Tenant or any Tenant Party results in any contamination of the Premises, the Building, the Project or any adjacent property, Tenant shall promptly take all actions at its sole expense and in accordance with applicable Environmental Requirements as are necessary to return the Premises, the Building, the Project or any adjacent property to the condition existing prior to the time of such contamination, provided that Landlord’s approval of such action shall first be obtained, which approval shall not unreasonably be withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises, the Building or the Project. Notwithstanding anything to the contrary contained in Section 28 or this Section 30, Tenant shall not be responsible for, and the indemnification and hold harmless obligation set forth in this paragraph shall not apply to (i) contamination in the Premises which Tenant can prove to Landlord’s reasonable satisfaction existed in the Premises prior to the Commencement Date, (ii) the presence of any Hazardous Materials in the Premises which Tenant can prove to Landlord’s reasonable satisfaction migrated from outside of the Premises into the Premises, or (iii) contamination caused by Landlord or any Landlord’s employees, agents and contractors unless in any case, the presence of such Hazardous Materials (x) is the result of a breach by Tenant of any of its obligations under this Lease, or (y) was caused, contributed to or exacerbated by Tenant or any Tenant Party.

(b)Business.  Landlord acknowledges that it is not the intent of this Section 30 to prohibit Tenant from using the Premises for the Permitted Use.  Tenant may operate its business according to prudent industry practices so long as the use or presence of Hazardous Materials is strictly and properly monitored according to all then applicable Environmental Requirements.  As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business, Tenant agrees to deliver to Landlord, within 21 days after the Commencement Date, a list identifying each type of Hazardous Materials to be brought upon, kept, used, stored, handled, treated, generated on, or released or disposed of from, the Premises and setting forth any and all governmental approvals or permits required in connection with the presence, use, storage, handling, treatment, generation, release or disposal of such Hazardous Materials on or from the Premises (“Hazardous Materials List”).  Tenant shall deliver to Landlord an updated Hazardous Materials List at any additional time that Tenant is required to deliver a Hazardous Materials List to any Governmental Authority (e.g., the fire department) in connection with its use or occupancy of the Premises.  Tenant shall deliver to Landlord true and correct copies of the following documents (the “Haz Mat Documents”) relating to the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials prior to the Commencement Date, or if unavailable at that time, concurrent with the receipt from or submission to a Governmental Authority:  permits; approvals; reports and correspondence; storage and management plans, notice of violations of any Legal Requirements; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given Tenant its written consent to do so, which consent may be withheld in Landlord’s sole and absolute discretion); all closure plans or any other documents required by any and all federal, state and local Governmental 

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Authorities for any storage tanks installed in, on or under the Project for the closure of any such tanks; and a Surrender Plan (to the extent surrender in accordance with Section 28 cannot be accomplished in 3 months).  Tenant is not required, however, to provide Landlord with any portion(s) of the Haz Mat Documents containing information of a proprietary nature which, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities.  It is not the intent of this Section to provide Landlord with information which could be detrimental to Tenant’s business should such information become possessed by Tenant’s competitors.

(c)Tenant Representation and Warranty.  To the best of Tenant’s knowledge, Tenant hereby represents and warrants to Landlord that (i) neither Tenant nor any of its legal predecessors has been required by any prior landlord, lender or Governmental Authority at any time to take remedial action in connection with Hazardous Materials contaminating a property which contamination was permitted by Tenant of such predecessor or resulted from Tenant’s or such predecessor’s action or use of the property in question, and (ii) Tenant is not subject to any enforcement order issued by any Governmental Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority).  If Landlord determines that this representation and warranty was not true as of the date of this lease, Landlord shall have the right to terminate this Lease in Landlord’s sole and absolute discretion.

(d)Testing.  Upon not less than 15 days advance written notice to Tenant, Landlord shall have the right to conduct annual tests of the Premises (at its sole cost except as otherwise provided in this Section 30) to determine whether any contamination of the Premises or the Project has occurred as a result of Tenant’s use.  Landlord shall use commercially reasonable efforts to minimize interference with Tenant’s business during such testing.  Tenant shall be required to pay the cost of such annual test of the Premises if there is a violation of this Section 30 or if contamination for which Tenant is responsible under this Section 30 is identified; provided, however, that if Tenant conducts its own tests of the Premises using third party contractors and test procedures acceptable to Landlord which tests are certified to Landlord, Landlord shall accept such tests in lieu of the annual tests to be paid for by Tenant.  In addition, at any time, and from time to time, prior to the expiration or earlier termination of the Term, Landlord shall have the right to conduct appropriate tests of the Premises and the Project to determine if contamination has occurred as a result of Tenant’s use of the Premises.  In connection with such testing, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant such non-proprietary information concerning the use of Hazardous Materials in or about the Premises by Tenant or any Tenant Party.  If contamination has occurred for which Tenant is liable under this Section 30, Tenant shall pay all costs to conduct such tests.  If no such contamination is found, Landlord shall pay the costs of such tests (which shall not constitute an Operating Expense).  Landlord shall provide Tenant with a copy of all third party, non-confidential reports and tests of the Premises made by or on behalf of Landlord during the Term without representation or warranty and subject to a confidentiality agreement.  Tenant shall, at its sole cost and expense, promptly and satisfactorily remediate any environmental conditions identified by such testing for which Tenant is responsible hereunder in accordance with all Environmental Requirements.  Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights which Landlord may have against Tenant. 

(e)Intentionally Omitted.  

(f)Underground Tanks.  If underground or other storage tanks storing Hazardous Materials located on the Premises or the Project are used by Tenant or are hereafter placed on the Premises or the Project by Tenant, Tenant shall install, use, monitor, operate, maintain, upgrade and manage such storage tanks, maintain appropriate records, obtain and maintain appropriate insurance, implement reporting procedures, properly close any underground storage tanks, and take or cause to be taken all other actions necessary or required under applicable state and federal Legal Requirements, as such now exists or may hereafter be adopted or amended in connection with the installation, use, maintenance, management, operation, upgrading and closure of such storage tanks.  

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(g)Tenant’s Obligations.  Tenant’s obligations under this Section 30 shall survive the expiration or earlier termination of the Lease.  During any period of time after the expiration or earlier termination of this Lease required by Tenant or Landlord to complete the removal from the Premises of any Hazardous Materials (including, without limitation, the release and termination of any licenses or permits restricting the use of the Premises and the completion of the approved Surrender Plan), Tenant shall continue to pay the full Rent in accordance with this Lease for any portion of the Premises not relet by Landlord in Landlord’s sole discretion, which Rent shall be prorated daily.  Nothing contained in this Section 30(g) is intended to make Tenant responsible for any Hazardous Materials which Tenant is not otherwise responsible for removing under this Lease.

(h)Definitions.  As used herein, the term “Environmental Requirements” means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any Governmental Authority regulating or relating to health, safety, or environmental conditions on, under, or about the Premises or the Project, or the environment, including without limitation, the following:  the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act; and all state and local counterparts thereto, and any regulations or policies promulgated or issued thereunder.  As used herein, the term “Hazardous Materials” means and includes any substance, material, waste, pollutant, or contaminant listed or defined as hazardous or toxic, or regulated by reason of its impact or potential impact on humans, animals and/or the environment under any Environmental Requirements, asbestos and petroleum, including crude oil or any fraction thereof, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas).  As defined in Environmental Requirements, Tenant is and shall be deemed to be the “operator” of Tenant’s “facility” and the “owner” of all Hazardous Materials brought on the Premises by Tenant or any Tenant Party, and the wastes, by-products, or residues generated, resulting, or produced therefrom.

31.Tenant’s Remedies/Limitation of Liability.  Landlord shall not be in default hereunder unless Landlord fails to perform any of its obligations hereunder within 30 days after written notice from Tenant specifying such failure (unless such performance will, due to the nature of the obligation, require a period of time in excess of 30 days, then after such period of time as is reasonably necessary, provided that Landlord shall diligently and continuously pursue such cure).  Upon any default by Landlord, Tenant shall give notice by registered or certified mail to any Holder of a Mortgage covering the Premises and to any landlord of any lease of property in or on which the Premises are located and Tenant shall offer such Holder and/or landlord a reasonable opportunity to cure the default, including time to obtain possession of the Project by power of sale or a judicial action if such should prove necessary to effect a cure; provided Landlord shall have furnished to Tenant in writing the names and addresses of all such persons who are to receive such notices.  All obligations of Landlord hereunder shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate this Lease for breach of Landlord’s obligations hereunder.

All obligations of Landlord under this Lease arising or accruing during the period of such Landlord’s ownership of the Premises, and not thereafter, will be binding upon Landlord.  The term “Landlord” in this Lease shall mean only the owner for the time being of the Premises.  Upon the transfer by such owner of its interest in the Premises, such owner shall thereupon be released and discharged from all obligations of Landlord thereafter accruing, but such obligations shall be binding during the Term upon each new owner for the duration of such owner’s ownership.

32.Inspection and Access.  Landlord and its agents, representatives, and contractors may enter the Premises at any reasonable time to inspect the Premises and to make such repairs as may be required or permitted pursuant to this Lease.  Landlord and Landlord’s representatives may enter the Premises during business hours on not less than 48 hours advance written notice (except in the case of emergencies in which case no such notice shall be required and such entry may be at any time) for the purpose of effecting any such repairs, inspecting the Premises, showing the Premises to prospective purchasers and, during the last year of the Term, to prospective tenants or for any other business purpose.  Landlord may erect a suitable sign on the Premises stating the Premises are available to let or that the Project is available for sale.  Landlord may grant easements, make public dedications, designate 

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Common Areas and create restrictions on or about the Premises, provided that no such easement, dedication, designation or restriction materially, adversely affects Tenant’s use or occupancy of the Premises for the Permitted Use.  At Landlord’s request, Tenant shall execute such instruments as may be necessary for such easements, dedications or restrictions.  Tenant shall at all times, except in the case of emergencies, have the right to escort Landlord or its agents, representatives, contractors or guests while the same are in the Premises, provided such escort does not materially and adversely affect Landlord’s access rights hereunder.  

33.Security.  Tenant acknowledges and agrees that security devices and services, if any, while intended to deter crime may not in given instances prevent theft or other criminal acts and that Landlord is not providing any security services with respect to the Premises.  Tenant agrees 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.  Tenant shall be solely responsible for the personal safety of Tenant’s officers, employees, agents, contractors, guests and invitees while any such person is in, on or about the Premises and/or the Project.  Tenant shall at Tenant’s cost obtain insurance coverage to the extent Tenant desires protection against such criminal acts.

34.Force Majeure.  Except for the payment of Rent, neither Landlord nor Tenant shall be held responsible or liable for delays in the performance of its obligations hereunder when caused by, related to, or arising out of acts of God, sinkholes or subsidence, strikes, lockouts, or other labor disputes, embargoes, quarantines, weather, national, regional, or local disasters, calamities, or catastrophes, inability to obtain labor or materials (or reasonable substitutes therefor) at reasonable costs or failure of, or inability to obtain, utilities necessary for performance, governmental restrictions, orders, limitations, regulations, or controls, national emergencies, delay in issuance or revocation of permits, enemy or hostile governmental action, terrorism, insurrection, riots, civil disturbance or commotion, fire or other casualty, and other causes or events beyond their reasonable control (“Force Majeure”).  

35.Brokers.  Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with this transaction and that no Broker brought about this transaction, other than Transwestern RBJ.  Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker, other than the broker, if any named in this Section 35, claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.  Landlord shall be responsible for all commissions due to Transwestern RBJ arising out of the execution of this Lease in accordance with the terms of a separate written agreement between Transwestern RBJ and Landlord.

36.Limitation on Landlord’s Liability.  NOTWITHSTANDING ANYTHING SET FORTH HEREIN OR IN ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT TO THE CONTRARY:  (A) LANDLORD SHALL NOT BE LIABLE TO TENANT OR ANY OTHER PERSON FOR (AND TENANT AND EACH SUCH OTHER PERSON ASSUME ALL RISK OF) LOSS, DAMAGE OR INJURY, WHETHER ACTUAL OR CONSEQUENTIAL TO:  TENANT’S PERSONAL PROPERTY OF EVERY KIND AND DESCRIPTION, INCLUDING, WITHOUT LIMITATION TRADE FIXTURES, EQUIPMENT, INVENTORY, SCIENTIFIC RESEARCH, SCIENTIFIC EXPERIMENTS, LABORATORY ANIMALS, PRODUCT, SPECIMENS, SAMPLES, AND/OR SCIENTIFIC, BUSINESS, ACCOUNTING AND OTHER RECORDS OF EVERY KIND AND DESCRIPTION KEPT AT THE PREMISES AND ANY AND ALL INCOME DERIVED OR DERIVABLE THEREFROM; (B) THERE SHALL BE NO PERSONAL RECOURSE TO LANDLORD FOR ANY ACT OR OCCURRENCE IN, ON OR ABOUT THE PREMISES OR ARISING IN ANY WAY UNDER THIS LEASE OR ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT WITH RESPECT TO THE SUBJECT MATTER HEREOF AND ANY LIABILITY OF LANDLORD HEREUNDER SHALL BE STRICTLY LIMITED SOLELY TO LANDLORD’S INTEREST IN THE PROJECT OR ANY PROCEEDS FROM SALE OR CONDEMNATION THEREOF AND ANY INSURANCE PROCEEDS PAYABLE IN RESPECT OF LANDLORD’S INTEREST IN THE PROJECT OR IN CONNECTION WITH ANY SUCH LOSS; AND (C) IN NO EVENT SHALL ANY 

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PERSONAL LIABILITY BE ASSERTED AGAINST LANDLORD IN CONNECTION WITH THIS LEASE NOR SHALL ANY RECOURSE BE HAD TO ANY OTHER PROPERTY OR ASSETS OF LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS.  UNDER NO CIRCUMSTANCES SHALL LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS BE LIABLE FOR INJURY TO TENANT’S BUSINESS OR FOR ANY LOSS OF INCOME OR PROFIT THEREFROM.

37.Severability.  If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby.  It is also the intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is illegal, invalid or unenforceable, there be added, as a part of this Lease, a clause or provision as similar in effect to such illegal, invalid or unenforceable clause or provision as shall be legal, valid and enforceable.

38.Signs; Exterior Appearance.  Tenant shall not, without the prior written consent of Landlord, which may be granted or withheld in Landlord’s sole discretion:  (i) attach any awnings, exterior lights, decorations, balloons, flags, pennants, banners, painting or other projection to any outside wall of the Project, (ii) use any curtains, blinds, shades or screens other than Landlord’s standard window coverings, (iii) coat or otherwise sunscreen the interior or exterior of any windows, (iv) place any bottles, parcels, or other articles on the window sills, (v) place any equipment, furniture or other items of personal property on any exterior balcony, or (vi) paint, affix or exhibit on any part of the Premises or the Project any signs, notices, window or door lettering, placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises.  Interior signs on doors and the directory tablet shall be inscribed, painted or affixed for Tenant by Landlord at the sole cost and expense of Tenant, and shall be of a size, color and type acceptable to Landlord.  Nothing may be placed on the exterior of corridor walls or corridor doors other than Landlord’s standard lettering.  The directory tablet shall be provided exclusively for the display of the name and location of tenants.

Tenant shall be entitled, at Tenant’s sole cost and expense, to install building signs with Tenant’s name and logo (collectively, the “Building Sign”) on the exterior of the Building in locations approved in writing by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed.  The Building Sign, including, without limitation, the size, color and type, shall be subject to Landlord’s prior written approval (which shall not to be unreasonably withheld, conditioned or delayed) and applicable Legal Requirements.  Tenant shall be solely responsible for all costs, fees, charges, expenses or other sums related to the Building Sign, including without limitation, costs related to manufacture and install the Building Sign and compliance with applicable Legal Requirements and Landlord’s signage program at the Project.  Tenant shall be solely responsible for the maintenance of all of Tenant’s Signs and the removal all of Tenant’s Signs at the expiration or earlier termination of this Lease and repair all damage resulting from such removal.  The signage rights granted to Tenant pursuant to this Section 38 are personal to Tenant any may not be assigned to any other party without Landlord’s consent, which may be granted or withheld in Landlord’s sole discretion separate and apart from any consent by Landlord to an assignment of Tenant’s interest in the Lease, except that they may be assigned in connection with any Permitted Assignment of this Lease.

39.Right to Extend Term.  Tenant shall have the right to extend the Term of the Lease upon the following terms and conditions:

(a)Extension Rights.  Tenant shall have 2 consecutive rights (each, an “Extension Right”) to extend the term of this Lease for 5 years each (each, an “Extension Term”) on the same terms and conditions as this Lease (other than with respect to Base Rent) by giving Landlord written notice of its election to exercise each Extension Right at least 9 months prior to the expiration of the Base Term of the Lease or the expiration of the prior Extension Term.

Base Rent shall be adjusted on the commencement date of such Extension Term and on each annual anniversary of the commencement of such Extension Term by multiplying the Base Rent payable 

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immediately before such adjustment by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable immediately before such adjustment.  

(b)Rights Personal.  Extension Rights are personal to Tenant and are not assignable without Landlord’s consent, which may be granted or withheld in Landlord’s sole discretion separate and apart from any consent by Landlord to an assignment of Tenant’s interest in the Lease, except that they may be assigned in connection with any Permitted Assignment of this Lease.

(c)Exceptions.  Notwithstanding anything set forth above to the contrary, Extension Rights shall, at Landlord’s option, not be in effect and Tenant may not exercise any of the Extension Rights:

(i)during any period of time that Tenant is in Default under any provision of this Lease; or

(ii)if Tenant has been in Default under any provision of this Lease 3 or more times, whether or not the Defaults are cured, during the 12 month period immediately prior to the date that Tenant intends to exercise an Extension Right, whether or not the Defaults are cured.

(d)No Extensions.  The period of time within which any Extension Rights may be exercised shall not be extended or enlarged by reason of Tenant’s inability to exercise the Extension Rights.

(e)Termination.  The Extension Rights shall, at Landlord’s option, terminate and be of no further force or effect even after Tenant’s due and timely exercise of an Extension Right, if, after such exercise, but prior to the commencement date of an Extension Term, (i) a Default has occurred under this Lease and is continuing; or (ii) Tenant has defaulted (beyond all applicable notice and cure periods) 3 or more times during the period from the date of the exercise of an Extension Right to the date of the commencement of the Extension Term, whether or not such defaults are cured.

40.Intentionally Omitted.  

41.Roof Equipment.  Subject to the provisions of this Lease, Tenant shall have the right at its sole cost and expense, subject to compliance with all Legal Requirements, to install, maintain, and remove on the top of the roof of the Building one or more satellite dishes, communication antennae, or other equipment (all of which having a diameter and height acceptable to Landlord) for the transmission or reception of communication of signals as Tenant may from time to time desire (collectively, the “Roof Equipment”) on the following terms and conditions:

(a)Requirements.  Tenant shall submit to Landlord (i) the plans and specifications for the installation of the Roof Equipment, (ii) copies of all required governmental and quasi-governmental permits, licenses, and authorizations that Tenant will and must obtain at its own expense, with the cooperation of Landlord, if necessary for the installation and operation of the Roof Equipment, and (iii) an insurance policy or certificate of insurance evidencing insurance coverage as required by this Lease and any other insurance as reasonably required by Landlord for the installation and operation of the Roof Equipment.  Landlord shall not unreasonably withhold or delay its approval for the installation and operation of the Roof Equipment; provided, however, that Landlord may reasonably withhold its approval if the installation or operation of the Roof Equipment (A) would reasonably be expected to damage the structural integrity of the Building, (B) would reasonably be expected to void, terminate, or invalidate any applicable roof warranty, (C) intentionally omitted, (D) may reduce the leasable space in the Building, or (E) is not properly screened from the viewing public.  

(b)No Damage to Roof.  If installation of the Roof Equipment requires Tenant to make any roof cuts or perform any other roofing work, such cuts shall only be made to the roof area of the Building located directly above the Premises and only in the manner designated in writing by Landlord; and any such installation work (including any roof cuts or other roofing work) shall be performed by Tenant, at Tenant’s sole cost and expense by a roofing contractor selected by Tenant and reasonably acceptable to 

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Landlord.  If Tenant or its agents shall otherwise cause any damage to the roof during the installation, operation, and removal of the Roof Equipment such damage shall be repaired promptly at Tenant’s expense and the roof shall be restored in substantially the same condition it was in before the damage, reasonable wear and tear excepted.  Landlord shall not charge Tenant Additional Rent for the installation and use of the Roof Equipment.  If, however, Landlord’s insurance premium or Tax assessment increases as a result of the Roof Equipment, Tenant shall pay such increase as Additional Rent within ten (10) days after receipt of a reasonably detailed invoice from Landlord.  Tenant shall not be entitled to any abatement or reduction in the amount of Rent payable under this Lease if for any reason Tenant is unable to use the Roof Equipment.  In no event whatsoever shall the installation, operation, maintenance, or removal of the Roof Equipment by Tenant or its agents void, terminate, or invalidate any applicable roof warranty.

(c)Protection.  The installation, operation, and removal of the Roof Equipment shall be at Tenant’s sole risk.  Tenant shall indemnify, defend, and hold Landlord harmless from and against any and all claims, costs, damages, liabilities and expenses (including, but not limited to, attorneys’ fees) of every kind and description that may arise out of or be connected in any way with Tenant’s installation, operation, or removal of the Roof Equipment.

(d)Removal.  At the expiration or earlier termination of this Lease or the discontinuance of the use of the Roof Equipment by Tenant, Tenant shall, at its sole cost and expense, remove the Roof Equipment from the Building.  Tenant shall leave the portion of the roof where the Roof Equipment was located in good order and repair, reasonable wear and tear excepted.  If Tenant does not so remove the Roof Equipment, Tenant hereby authorizes Landlord to remove and dispose of the Roof Equipment and charge Tenant as Additional Rent for all costs and expenses incurred by Landlord in such removal and disposal.  Tenant agrees that Landlord shall not be liable for any Roof Equipment or related property disposed of or removed by Landlord.

(e)No Interference.  The Roof Equipment shall not interfere with the proper functioning of any telecommunications equipment or devices that have been installed or will be installed by Landlord.  

(f)Relocation.  Landlord shall have the right, at its expense and after 60 days prior notice to Tenant, to relocate the Roof Equipment to another site on the roof of the Building as long as such site reasonably meets Tenant’s sight line and interference requirements and does not unreasonably interfere with Tenant’s use and operation of the Roof Equipment.

(g)Access.  Landlord grants to Tenant the right of ingress and egress on a 24 hour 7 day per week basis to install, operate, and maintain the Roof Equipment.  Before receiving access to the roof of the Building, Tenant shall give Landlord at least 24 hours’ advance written or oral notice, except in emergency situations, in which case 2 hours’ advance oral notice shall be given by Tenant.  Landlord shall supply Tenant with the name, telephone, and pager numbers of the contact individual(s) responsible for providing access during emergencies.

(h)Intentionally Omitted.

(i)No Assignment.  The right of Tenant to use and operate the Roof Equipment shall be personal solely to Foundation Medicine, Inc., and (i) no other person or entity shall have any right to use or operate the Roof Equipment other then in connection with a Permitted Assignment, and (ii) Tenant shall not assign, convey, or otherwise transfer to any person or entity any right, title, or interest in all or any portion of the Roof Equipment or the use and operation thereof other than in connection with a Permitted Assignment.

42.Miscellaneous.

(a)Notices.  All notices or other communications between the parties shall be in writing and shall be deemed duly given upon delivery or refusal to accept delivery by the addressee thereof if 

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delivered in person, or upon actual receipt if delivered by reputable overnight guaranty courier, addressed and sent to the parties at their addresses set forth above.  Landlord and Tenant may from time to time by written notice to the other designate another address for receipt of future notices.

(b)Joint and Several Liability.  If and when included within the terms “Landlord” or “Tenant,” as used in this instrument, there is more than one person or entity, each shall be jointly and severally liable for the obligations of Landlord or Tenant as applicable.

(c)Financial Information.  Tenant shall furnish Landlord  with true and complete copies of (i) Tenant’s most recent audited annual financial statements within 90 days of the end of each of Tenant’s fiscal years during the Term, and (ii) Tenant’s most recent unaudited quarterly financial statements within 45 days of the end of each of Tenant’s first three fiscal quarters of each of Tenant’s fiscal years during the Term. So long as Tenant is a “public company” and its financial information is publicly available, then the foregoing delivery requirements of this Section 42(c) shall not apply.

(d)Recordation.  This Lease shall not be filed by or on behalf of Tenant in any public record.  Notwithstanding the foregoing, upon Tenant’s request and at Tenant’s sole cost and expense, Landlord shall execute and properly notarize a memorandum of lease prepared by Tenant which memorandum shall contain only the following information and any other additional information that may be required by applicable law: (i) the names of the parties to this Lease, (ii) description of the Premises and the Project, and (iii) the Term.  Tenant shall file such memorandum of lease in the public record, at Tenant’s sole cost.  If Tenant fails, after a second written request from Landlord, to record a termination of the memorandum on the expiration or earlier termination of this Lease, Tenant shall be responsible for any damages suffered by Landlord (from any cause including, without limitation, resulting from any indemnities or certifications which may be made by Landlord in favor of third parties).  The provisions of this Section 41(d) shall survive the expiration or earlier termination of this Lease.  Nothing contained in this Lease is intended to prohibit Tenant from filing this Lease to the extent that Tenant is required to do so pursuant to applicable SEC requirements; provided, however that Tenant shall seek confidential treatment from the SEC with respect to certain information contained in this Lease if requested to do so by Landlord at the time this Lease is executed.

(e)Interpretation.  The normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Lease or any exhibits or amendments hereto.  Words of any gender used in this Lease shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires.  The captions inserted in this Lease are for convenience only and in no way define, limit or otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect the interpretation of this Lease.

(f)Not Binding Until Executed.  The submission by Landlord to Tenant of this Lease shall have no binding force or effect, shall not constitute an option for the leasing of the Premises, nor confer any right or impose any obligations upon either party until execution of this Lease by both parties.

(g)Limitations on Interest.  It is expressly the intent of Landlord and Tenant at all times to comply with applicable law governing the maximum rate or amount of any interest payable on or in connection with this Lease.  If applicable law is ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord’s and Tenant’s express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder.

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(h)Choice of Law.  Construction and interpretation of this Lease shall be governed by the internal laws of the state in which the Premises are located, excluding any principles of conflicts of laws.

(i)Time.  Time is of the essence as to the performance of Tenant’s obligations under this Lease.

(j)OFAC.  Tenant is currently (a) in compliance with and shall at all times during the Term of this Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of this Lease be listed on, the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, which are all maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

(k)Incorporation by Reference.  All exhibits and addenda attached hereto are hereby incorporated into this Lease and made a part hereof.  If there is any conflict between such exhibits or addenda and the terms of this Lease, such exhibits or addenda shall control.

(l)Entire Agreement.  This Lease, including the exhibits attached hereto, constitutes the entire agreement between Landlord and Tenant pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, letters of intent, negotiations and discussions, whether oral or written, of the parties, and there are no warranties, representations or other agreements, express or implied, made to either party by the other party in connection with the subject matter hereof except as specifically set forth herein.

(m)No Accord and Satisfaction.  No payment by Tenant or receipt by Landlord of a lesser amount than the monthly installment of Base Rent or any Additional Rent will be other than on account of the earliest stipulated Base Rent and Additional Rent, nor will any endorsement or statement on any check or letter accompanying a check for payment of any Base Rent or Additional Rent be an accord and satisfaction.  Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue any other remedy provided in this Lease.

(n)Hazardous Activities.  Notwithstanding any other provision of this Lease, Landlord, for itself and its employees, agents and contractors, reserves the right to refuse to perform any repairs or services in any portion of the Premises which, pursuant to Tenant’s routine safety guidelines, practices or custom or prudent industry practices, require any form of protective clothing or equipment other than safety glasses.  In any such case, Tenant shall contract with parties who are acceptable to Landlord, in Landlord’s reasonable discretion, for all such repairs and services, and Landlord shall, to the extent required, equitably adjust Tenant’s Share of Operating Expenses in respect of such repairs or services to reflect that Landlord is not providing such repairs or services to Tenant.  

(o)Non-Affiliation.  For purposes of this Lease, Roche Holding Ltd, Basel, Switzerland (“Roche”) and Chugai Pharmaceutical Co., Ltd., Tokyo, Japan (“Chugai”), and their respective subsidiaries, shall not be deemed affiliates of Tenant, unless Tenant opts for such inclusion of Roche and/or Chugai and their respective subsidiaries by giving written notice to Landlord.

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

TENANT:

FOUNDATION MEDICINE, INC.,

a Delaware corporation

 

 

 

By:/s/ Steven J. Kafka

Its:President and Chief Operating Officer

 

 

 

LANDLORD:

ARE-7030 KIT CREEK, LLC,

a Delaware limited liability company

 

By:Alexandria Real Estate Equities, L.P., a Delaware limited partnership, managing member

 

By:ARE-QRS CORP.,

a Maryland corporation,

general partner

             By:/s/ Gary Dean                                

Its:Senior Vice President, Legal Affairs                      

 

 

 

 

7010 Kit Creek/Foundation Medicine - Page 1

EXHIBIT A TO LEASE

DESCRIPTION OF PREMISES

7010 Kit Creek/Foundation Medicine - Page 2

 

7010 Kit Creek/Foundation Medicine - Page 1

EXHIBIT B TO LEASE

DESCRIPTION OF PROJECT

7010 Kit Creek/Foundation Medicine - Page 2

 

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EXHIBIT C TO LEASE

WORK LETTER

THIS WORK LETTER (this “Work Letter”) is incorporated into that certain Lease Agreement (the “Lease”) dated as of ____________, _____ by and between ARE-7030 KIT CREEK, LLC, a Delaware limited liability company (“Landlord”), and FOUNDATION MEDICINE, INC., a Delaware corporation (“Tenant”).  Any initially capitalized terms used but not defined herein shall have the meanings given them in the Lease.

1.General Requirements.

(a)Tenant’s Authorized Representative.  Tenant designates Chris Maciejczak, Sr., Director of Facilities Operations (“Tenant’s Representative”) as the only person authorized to act for Tenant pursuant to this Work Letter.  Landlord shall not be obligated to respond to or act upon any request, approval, inquiry or other communication (“Communication”) from or on behalf of Tenant in connection with this Work Letter unless such Communication is in writing from Tenant’s Representative.  Tenant may change Tenant’s Representative at any time upon not less than 5 business days advance written notice to Landlord.  

(b)Landlord’s Authorized Representative.  Landlord designates Oliver Sherrill and Melissa Verdery (either such individual acting alone, “Landlord’s Representative”) as the only persons authorized to act for Landlord pursuant to this Work Letter.  Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other Communication from or on behalf of Landlord in connection with this Work Letter unless such Communication is in writing from Landlord’s Representative.  Landlord may change either Landlord’s Representative at any time upon not less than 5 business days advance written notice to Tenant.  

(c)Architects, Consultants and Contractors.  Landlord and Tenant hereby acknowledge and agree that the architect (the “TI Architect”) for the Tenant Improvements (as defined in Section 2(a) below), the general contractor and any subcontractors for the Tenant Improvements shall be selected by Tenant, subject to Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed.  Landlord shall be named a third party beneficiary of any contract entered into by Tenant with the TI Architect, any consultant, any contractor or any subcontractor, and of any warranty made by any contractor or any subcontractor.  

2.Tenant Improvements.

(a)Tenant Improvements Defined.  As used herein, “Tenant Improvements” shall mean all improvements to the Premises desired by Tenant of a fixed and permanent nature (including, without limitation, modular casework).  Other than funding the TI Allowance (as defined below) as provided herein, Landlord shall not have any obligation whatsoever with respect to the finishing of the Premises for Tenant’s use and occupancy.

(b)Tenant’s Space Plans.  Tenant shall deliver to Landlord schematic drawings and outline specifications (the “TI Design Drawings”) detailing Tenant’s requirements for the Tenant Improvements.  Not more than 10 business days thereafter, Landlord shall deliver to Tenant the written objections, questions or comments of Landlord and the TI Architect with regard to the TI Design Drawings.  Tenant shall cause the TI Design Drawings to be revised to address such written comments and shall resubmit said drawings to Landlord for approval within 10 business days thereafter.  Such process shall continue until Landlord has approved the TI Design Drawings.

(c)Working Drawings.  Not later than 15 business days following the approval of the TI Design Drawings by Landlord, Tenant shall cause the TI Architect to prepare and deliver to Landlord for review and comment construction plans, specifications and drawings for the Tenant Improvements (“TI 

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Construction Drawings”), which TI Construction Drawings shall be prepared substantially in accordance with the TI Design Drawings.  Tenant shall be solely responsible for ensuring that the TI Construction Drawings reflect Tenant’s requirements for the Tenant Improvements.  Landlord shall deliver its written comments on the TI Construction Drawings to Tenant not later than 10 business days after Landlord’s receipt of the same; provided, however, that Landlord may not disapprove any matter that is consistent with the TI Design Drawings.  Tenant and the TI Architect shall consider all such comments in good faith and shall, within 10 business days after receipt, notify Landlord how Tenant proposes to respond to such comments.  Any disputes in connection with such comments shall be resolved in accordance with Section 2(d) hereof.  Provided that the design reflected in the TI Construction Drawings is consistent with the TI Design Drawings, Landlord shall approve the TI Construction Drawings submitted by Tenant.  Once approved by Landlord, subject to the provisions of Section 4 below, Tenant shall not materially modify the TI Construction Drawings except as may be reasonably required in connection with the issuance of the TI Permit (as defined in Section 3(a) below).

(d)Approval and Completion.  If any dispute regarding the design of the Tenant Improvements is not settled within 10 business days after notice of such dispute is delivered by one party to the other, Tenant may make the final decision regarding the design of the Tenant Improvements, provided (i) Tenant acts reasonably and such final decision is either consistent with or a compromise between Landlord’s and Tenant’s positions with respect to such dispute, (ii) that all costs and expenses resulting from any such decision by Tenant shall be payable out of the TI Fund (as defined in Section 5(d) below), and (iii) Tenant’s decision will not affect the base Building, structural components of the Building or any Building systems (in which case Landlord shall make the final decision).  Any changes to the TI Construction Drawings following Landlord’s and Tenant’s approval of same requested by Tenant shall be processed as provided in Section 4 hereof.

3.Performance of the Tenant Improvements.

(a)Commencement and Permitting of the Tenant Improvements.  Tenant shall commence construction of the Tenant Improvements upon obtaining and delivering to Landlord a building permit (the “TI Permit”) authorizing the construction of the Tenant Improvements consistent with the TI Construction Drawings approved by Landlord.  The cost of obtaining the TI Permit shall be payable from the TI Fund.  Landlord shall assist Tenant in obtaining the TI Permit.  Prior to the commencement of the Tenant Improvements, Tenant shall deliver to Landlord a copy of any contract with Tenant’s contractors (including the TI Architect), and certificates of insurance from any contractor performing any part of the Tenant Improvement evidencing industry standard commercial general liability, automotive liability, “builder’s risk”, and workers’ compensation insurance.  Tenant shall cause the general contractor to provide a certificate of insurance naming Landlord, Alexandria Real Estate Equities, Inc., and Landlord’s lender (if any) as additional insureds for the general contractor’s liability coverages required above.

(b)Selection of Materials, Etc.  Where more than one type of material or structure is indicated on the TI Construction Drawings approved by Tenant and Landlord, the option will be within Tenant’s reasonable discretion if the matter concerns the Tenant Improvements, and within Landlord’s sole and absolute subjective discretion if the matter concerns the structural components of the Building or any Building system.

(c)Tenant Liability.  Tenant shall be responsible for correcting any deficiencies or defects in the Tenant Improvements. 

(d)Substantial Completion.  Tenant shall substantially complete or cause to be substantially completed the Tenant Improvements in a good and workmanlike manner, in accordance with the TI Permit subject, in each case, to Minor Variations and normal “punch list” items of a non-material nature which do not interfere with the use of the Premises (“Substantial Completion” or “Substantially Complete”).  Upon Substantial Completion of the Tenant Improvements, Tenant shall require the TI Architect and the general contractor to execute and deliver, for the benefit of Tenant and Landlord, a Certificate of Substantial Completion in the form of the American Institute of Architects (“AIA”) document 

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G704.  For purposes of this Work Letter, “Minor Variations” shall mean any modifications reasonably required:  (i) to comply with all applicable Legal Requirements and/or to obtain or to comply with any required permit (including the TI Permit); (ii) to comport with good design, engineering, and construction practices which are not material; or (iii) to make reasonable adjustments for field deviations or conditions encountered during the construction of the Tenant Improvements.

4.Changes.  Any changes requested by Tenant to the Tenant Improvements after the delivery and approval by Landlord of the TI Design Drawings, shall be requested and instituted in accordance with the provisions of this Section 4 and shall be subject to the written approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed.

(a)Tenant’s Right to Request Changes.  If Tenant shall request changes (“Changes”), Tenant shall request such Changes by notifying Landlord in writing in substantially the same form as the AIA standard change order form (a “Change Request”), which Change Request shall detail the nature and extent of any such Change.  Such Change Request must be signed by Tenant’s Representative.  Landlord shall review and approve or disapprove such Change Request within 10 business days thereafter, provided that Landlord’s approval shall not be unreasonably withheld, conditioned or delayed.

(b)Implementation of Changes.  If Landlord approves such Change and Tenant deposits with Landlord any Excess TI Costs (as defined in Section 5(d) below) required in connection with such Change, Tenant may cause the approved Change to be instituted.  If any TI Permit modification or change is required as a result of such Change, Tenant shall promptly provide Landlord with a copy of such TI Permit modification or change.

5.Costs.

(a)Budget For Tenant Improvements.  Before the commencement of construction of the Tenant Improvements, Tenant shall obtain a detailed breakdown, by trade, of the costs incurred or that will be incurred, in connection with the design and construction of the Tenant Improvements (the “Budget”), and deliver a copy of the Budget to Landlord for Landlord’s approval, which shall not be unreasonably withheld or delayed.  The Budget shall be based upon the TI Construction Drawings approved by Landlord. The Budget shall include a payment to Landlord of administrative rent (“Administrative Rent”) equal to 1.0% of the TI Costs (as hereinafter defined) for monitoring and inspecting the construction of the Tenant Improvements, which sum shall be payable from the TI Fund.  Such Administrative Rent shall include, without limitation, all out-of-pocket costs, expenses and fees incurred by or on behalf of Landlord arising from, out of, or in connection with, such monitoring of the construction of the Tenant Improvements.  

(b)TI Allowance.  Landlord shall provide to Tenant a tenant improvement allowance (“TI Allowance”) of up to $25.00 per rentable square foot of the Premises.  Tenant shall be required to pay TI Rent pursuant to Section 4(b) of the Lease with respect to any portion of the TI Allowance that Tenant elects to use in excess of $10.00 per rentable square foot of the Premises.  The TI Allowance shall be disbursed in accordance with this Work Letter. 

In addition to the TI Allowance, Landlord shall pay to the TI Architect up to $0.12 per rentable square footage of the Premises for actual costs incurred by Tenant for the preparation by the TI Architect of a preliminary test fit for the Premises.  

Tenant shall have no right to the use or benefit (including any reduction to Base Rent) of any portion of the TI Allowance not required for the construction of (i) the Tenant Improvements described in the TI Construction Drawings approved pursuant to Section 2(d) or (ii) any Changes pursuant to Section 4.  Tenant shall have no right to any portion of the TI Allowance that is not disbursed before the last day of the month that is 12 months after the Rent Commencement Date.  

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(c)Costs Includable in TI Fund.  The TI Fund shall be used solely for the payment of design, permits and construction costs in connection with the construction of the Tenant Improvements, including, without limitation, the cost of electrical power and other utilities used in connection with the construction of the Tenant Improvements, the cost of preparing the TI Design Drawings and the TI Construction Drawings, all costs set forth in the Budget, including Landlord’s Administrative Rent, and the cost of Changes (collectively, “TI Costs”).  Notwithstanding anything to the contrary contained herein, the TI Fund shall not be used to purchase any furniture, personal property or other non-Building system materials or equipment, including, but not be limited to, non-ducted biological safety cabinets and other scientific equipment not incorporated into the Tenant Improvements; provided, however, that Tenant may use up to $35,000 of the TI Allowance in the aggregate toward the cost of Tenant’s voice and data cabling.

(d)Excess TI Costs.  Landlord shall have no obligation to bear any portion of the cost of any of the Tenant Improvements except to the extent of the TI Allowance.  If at any time and from time-to-time, the remaining TI Costs under the Budget exceed the remaining unexpended TI Allowance, Tenant shall deposit with Landlord, as a condition precedent to Landlord’s obligation to fund the TI Allowance, 100% of the then current TI Cost in excess of the remaining TI Allowance (“Excess TI Costs”).  If Tenant fails to deposit, or is late in depositing any Excess TI Costs with Landlord, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of Rent (including, but not limited to, the right to interest at the Default Rate and the right to assess a late charge).  For purposes of any litigation instituted with regard to such amounts, those amounts will be deemed Rent under the Lease.  The TI Allowance and Excess TI Costs is herein referred to as the “TI Fund.”  Funds deposited by Tenant shall be the first thereafter disbursed to pay TI Costs.  Notwithstanding anything to the contrary set forth in this Section 5(d), Tenant shall be fully and solely liable for TI Costs and the cost of Minor Variations in excess of the TI Allowance.  If upon Substantial Completion of the Tenant Improvements and the payment of all sums due in connection therewith there remains any undisbursed portion of the TI Fund, Tenant shall be entitled to such undisbursed TI Fund solely to the extent of any Excess TI Costs deposit Tenant has actually made with Landlord.

(e)Payment for TI Costs.  During the course of design and construction of the Tenant Improvements, Landlord shall reimburse Tenant for TI Costs once a month against a draw request in Landlord’s standard form, containing evidence of payment of such TI Costs by Tenant and such certifications, lien waivers (including a conditional lien release for each progress payment and unconditional lien releases for the prior month’s progress payments), inspection reports and other matters as Landlord customarily obtains, to the extent of Landlord’s approval thereof for payment, no later than 30 days following receipt of such draw request.  Upon completion of the Tenant Improvements (and prior to any final disbursement of the TI Fund), Tenant shall deliver to Landlord:  (i) sworn statements setting forth the names of all contractors and first tier subcontractors who did the work and final, unconditional lien waivers from all such contractors and first tier subcontractors; (ii) as-built plans (one copy in print format and two copies in electronic CAD format) for such Tenant Improvements; (iii) a certification of substantial completion in Form AIA G704, (iv) if applicable as a result of the Tenant Improvements, a certificate of occupancy for the Premises; and (v) if applicable as a result of the Tenant Improvements, copies of any and all operation and maintenance manuals and warranties affecting the Premises.  

6.Miscellaneous.

(a)Consents.  Whenever consent or approval of either party is required under this Work Letter, that party shall not unreasonably withhold, condition or delay such consent or approval, except as may be expressly set forth herein to the contrary.

(b)Modification.  No modification, waiver or amendment of this Work Letter or of any of its conditions or provisions shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant.

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(c)No Default Funding.  In no event shall Landlord have any obligation to fund any portion of the TI Allowance during any period that Tenant is in Default under the Lease.

 

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EXHIBIT D TO LEASE

ACKNOWLEDGMENT OF COMMENCEMENT DATE

This ACKNOWLEDGMENT OF COMMENCEMENT DATE is made this _____ day of ______________, ____, between ARE-7030 KIT CREEK, LLC, a Delaware limited liability company (“Landlord”), and FOUNDATION MEDICINE, INC., a Delaware corporation (“Tenant”), and is attached to and made a part of the Lease dated ______________, _____ (the “Lease”), by and between Landlord and Tenant.  Any initially capitalized terms used but not defined herein shall have the meanings given them in the Lease.

Landlord and Tenant hereby acknowledge and agree, for all purposes of the Lease, that the Commencement Date of the Base Term of the Lease is ______________, _____, the Rent Commencement Date is ______________, _____, and the termination date of the Base Term of the Lease shall be midnight on ______________, _____.  In case of a conflict between the terms of the Lease and the terms of this Acknowledgment of Commencement Date, this Acknowledgment of Commencement Date shall control for all purposes.

IN WITNESS WHEREOF, Landlord and Tenant have executed this ACKNOWLEDGMENT OF COMMENCEMENT DATE to be effective on the date first above written.

TENANT:

FOUNDATION MEDICINE, INC.,

a Delaware corporation

 

 

 

By:

Its:

 

 

 

LANDLORD:

ARE-7030 KIT CREEK, LLC,

a Delaware limited liability company

 

By:Alexandria Real Estate Equities, L.P., a Delaware limited partnership, managing member

 

By:ARE-QRS CORP.,

a Maryland corporation,

general partner

By:

Its:

 

 

 

Rules and Regulations7010 Kit Creek/Foundation Medicine - Page 1

EXHIBIT E TO LEASE

Rules and Regulations

1.The sidewalk, entries, and driveways of the Project shall not be obstructed by Tenant, or any Tenant Party, or used by them for any purpose other than ingress and egress to and from the Premises.

2.Except as permitted under the Lease, Tenant shall not place any objects, including antennas, outdoor furniture, etc., in the parking areas, landscaped areas or other areas outside of its Premises, or on the roof of the Project.

3.Except for animals assisting the disabled, no animals shall be allowed in the offices, halls, or corridors in the Project.

4.Tenant shall not disturb the occupants of the Project or adjoining buildings by the use of any radio or musical instrument or by the making of loud or improper noises.

5.If Tenant desires telegraphic, telephonic or other electric connections in the Premises, Landlord or its agent will direct the electrician as to where and how the wires may be introduced; and, without such direction, no boring or cutting of wires will be permitted.  Any such installation or connection shall be made at Tenant’s expense.

6.Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical apparatus in the Premises, except as specifically approved in the Lease.  The use of oil, gas or inflammable liquids for heating, lighting or any other purpose is expressly prohibited.  Explosives or other articles deemed extra hazardous shall not be brought into the Project.

7.Parking any type of recreational vehicles is specifically prohibited on or about the Project.  Except for the overnight parking of operative vehicles, no vehicle of any type shall be stored in the parking areas at any time.  In the event that a vehicle is disabled, it shall be removed within 48 hours.  There shall be no “For Sale” or other advertising signs on or about any parked vehicle.  All vehicles shall be parked in the designated parking areas in conformity with all signs and other markings.  All parking will be open parking, and no reserved parking, numbering or lettering of individual spaces will be permitted except as specified by Landlord.

8.Tenant shall maintain the Premises free from rodents, insects and other pests.

9.Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs or who shall in any manner do any act in violation of the Rules and Regulations of the Project.

10.Tenant shall not cause any unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness.  Landlord shall not be responsible to Tenant for any loss of property on the Premises, however occurring, or for any damage done to the effects of Tenant by the janitors or any other employee or person.

11.Tenant shall give Landlord prompt notice of any defects in the water, lawn sprinkler, sewage, gas pipes, electrical lights and fixtures, heating apparatus, or any other service equipment affecting the Premises.

12.Tenant shall not permit storage outside the Premises, including without limitation, outside storage of trucks and other vehicles, or dumping of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises.

Rules and Regulations7010 Kit Creek/Foundation Medicine - Page 2

13.All moveable trash receptacles provided by the trash disposal firm for the Premises must be kept in the trash enclosure areas, if any, provided for that purpose.

14.No auction, public or private, will be permitted on the Premises or the Project.

15.No awnings shall be placed over the windows in the Premises except with the prior written consent of Landlord.

16.The Premises shall not be used for lodging, sleeping or cooking (other than by microwave) or for any immoral or illegal purposes or for any purpose other than that specified in the Lease.  No illegal gaming devices shall be operated in the Premises.

17.Tenant shall ascertain from Landlord the maximum amount of electrical current which can safely be used in the Premises, taking into account the capacity of the electrical wiring in the Project and the Premises and the needs of other tenants, and shall not use more than such safe capacity.  Landlord’s consent to the installation of electric equipment shall not relieve Tenant from the obligation not to use more electricity than such safe capacity.

18.Tenant assumes full responsibility for protecting the Premises from theft, robbery and pilferage.

19.Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises and shall keep all such machinery free of vibration, noise and air waves which may be transmitted beyond the Premises.

 

 

7010 Kit Creek/Foundation Medicine - Page 1

EXHIBIT F TO LEASE

TENANT’S PERSONAL PROPERTY

None.

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