Document:

exv10w22

Exhibit 10.22

HELIX TECHNOLOGY CORPORATION

EMPLOYEES’ PENSION PLAN

As amended and restated including amendments effective

through December 31, 2010

December 2010

 

 

ARTICLE I

INTRODUCTION

	1.1	 	Name. This Plan shall be known as the Helix Technology Corporation Employees’
Pension Plan.
	 
	1.2	 	Background. This Plan was effective on January 1, 1979 for the purpose of providing
eligible Participants with periodic income after retirement.
	 
	 	 	The Plan represents an amendment, restatement, and continuation of the Helix Technology
Corporation Employees’ Pension Plan as it existed on December 31, 1988. The Plan was
amended and restated on December 31, 2010 and is effective January 1, 2011 except to the
extent otherwise specifically provided herein.
	 
	 	 	During 2005, Helix Technology Corporation was acquired by Brooks Automation, Inc. As a
result, Brooks Automation, Inc. was named plan sponsor for the Plan.
	 
	1.3	 	Purpose. The Plan is maintained for the purpose of providing retirement benefits to
Participants, their eligible Spouses, and Contingent Annuitants. It is the intention of the
Company that this Plan, including the Trust Fund, meet the requirements of the Employee
Retirement Income Security Act of 1974 (ERISA) and be qualified and exempt under Sections
401(a) and 501(a) of the Internal Revenue Code of 1986, as amended from time to time including
but not limited to the Uruguay Round Agreements Act (GATT), the Uniformed Services Employment
and Reemployment Act of 1994 (USERRA), the Small Business Job Protection Act of 1996 (SBJPA),
the Taxpayer Relief Act of 1997 (TRA ‘97), the Internal Revenue Service Restructuring and
Reform Act of 1998 (RRA ‘98), the Economic Growth and Tax Relief Reconciliation Act of 2001
(EGTRRA), the Pension Funding Equity Act of 2004 (PFEA), the Pension Protection Act of 2006
(PPPA 06) and the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act).
	 
	 	 	Except as otherwise specifically and expressly provided herein, a former Employee’s
eligibility for amounts of benefits, if any, payable to or on behalf of such former
Employee, shall be determined in accordance with the provisions of the Plan in effect

 

 

	 	 	when
his employment terminated. The benefit payable to or on behalf of a Participant included
under the Plan in accordance with the following provisions shall not be affected by the
terms of any amendment to the Plan adopted after such Participant’s employment terminates,
unless the amendment expressly provides otherwise.

	1.4	 	Pension Plan Frozen Effective October 31, 2006. The Plan was frozen on October 31,
2006. This means that Participants will not earn any additional benefits under the Plan after
October 31, 2006. Any benefits that had already been earned under the Plan as of October 31,
2006 will become available to Participants upon retirement. Participants will continue to earn
vesting service after October 31, 2006 if they remain an eligible employee. Final average pay,
years of participation and covered compensation will all be determined as of October 31, 2006.
An Employee who is not a Participant in the Plan on October 31, 2006 shall not be eligible to
participate.

ARTICLE II

DEFINITIONS

The following words and phrases when used in the Plan shall have the following meanings, unless a
different meaning is clearly required by the context:

	2.1	 	Accrued Benefit shall mean the monthly benefit, payable as a straight life annuity,
to begin at Normal Retirement Date determined as of any date pursuant to Paragraph 5.1,
provided, however, the basic retirement amount under Paragraphs 5.1(a)(i), (ii) and (iii)
shall be calculated based on the Participant’s Benefit Service and Average Compensation as of
the date of determination of the Accrued Benefit.
	 
	2.2	 	Actuarial Equivalent shall mean for purposes of optional forms of benefit other than
lump sum benefits and determination of the Helix Technology Corporation
Employees’ Personal Account Plan Benefit, a benefit of equivalent value to the benefit which
would otherwise have been provided, determined on the basis of the 1971 TPF&C Forecast
Mortality Table (with a one-year age setback) and on the basis of an interest rate of 8.5%.

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	 	 	The determination of a lump sum benefit for payment of benefits shall be based on the Unisex
Pension 1984 Mortality Table (with a one-year age setback) and on the interest rate, either
immediate or deferred, that would be used by the Pension Benefit Guaranty Corporation (as in
effect on the first day of the Plan Year in which the date of determination occurs) for
purposes of determining the present lump sum value of an annual benefit upon plan
termination. Effective January 1, 2002, the determination of a lump sum benefit for payment
of benefits shall be computed on the basis of the following factors and assumptions:

Interest —

Applicable interest rate as defined in Code Section 417(e)(3)(A)(ii)(II) as
specified by the Commissioner for January 1st of the Plan Year in
which the distribution occurs.

Mortality —

Applicable mortality tables as defined in Code Section 417 (e)(3)(A)(ii)(I).

	 	 	Effective January 1, 2008 for purposes of determining the current value of a lump sum
benefit, Actuarial Equivalence shall be calculated in accordance with Code section 417(e)3,
Revenue Ruling 2007-67 and such other guidance as may be issued by the Commissioner of the
Internal Revenue; provided that the “applicable interest rate” shall be determined based on
the look back month and the stability period set forth above.

	2.3	 	Actuary shall mean an individual who is an “enrolled actuary” under ERISA and who has
been selected by Helix Technology Corporation
	 
	2.4	 	Affiliated Company shall mean any corporation which is included with the Company in a
controlled group of corporations, as determined in accordance with Section 414(b) of the Code,
any unincorporated trade or business which is under common control of the Company under
Section 414(c) of the Code, any organization that includes the Company which is a member of an
affiliated service group, as defined in Section 414(m)

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	 	 	of the Code, and any other entity
required to be aggregated with the Company pursuant to regulations under Section 414(o) of the
Code. For the purposes of Paragraph 5.5, Sections 414(b) and (c) of the Code shall be applied
as modified by Section 415(h) of the Code.

	2.5	 	Average Compensation shall mean twelve times the monthly average of the total
Compensation received by an Employee for those 60 consecutive calendar months (all calendar
months if he completed less than 60 months of service) which give the highest average out of
the 120 latest calendar months (all calendar months if he completed less than 120 months of
service) immediately preceding termination of employment, Early Retirement, Normal Retirement
or Postponed Retirement, whichever occurs first.
	 
	2.6	 	Beneficiary shall mean any person designated in writing by the Participant (which
designation may be changed from time to time) to receive benefits under this Plan payable upon
the death of a Participant.
	 
	 	 	For any married Participant, Beneficiary shall mean the Participant’s Spouse unless the
Participant designates another person as Beneficiary and the Participant’s Spouse consents
to such designation in writing. Such written consent must approve the specific beneficiary
designated, acknowledge the effect of such designation and be witnessed by a Plan
representative or by a notary public. If it is established to the satisfaction of the
Benefits Committee that the Participant has no spouse or that the spouse’s consent cannot be
obtained because the spouse cannot be located, or because of such other circumstances as may
be prescribed in regulations issued pursuant to Section 417 of the Code, such written
consent shall not be required.
	 
	 	 	If no such designation is in effect at the time of the death of the Participant, or if no
person so designated shall survive the Participant, the Beneficiary shall mean the
Participant’s Spouse, or if there is no surviving Spouse, Beneficiary shall mean the
Participant’s estate.

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	2.7	 	Benefit Service shall mean the period(s) as defined in Paragraph 3.2 of an Employee’s
employment (expressed in years and completed months) for purposes of the computation of a
retirement benefit as determined in accordance with Article V.
	 
	2.8	 	Benefits Committee shall mean the committee appointed by the Board to administer the
Plan pursuant to Article X.
	 
	2.9	 	Board shall mean the Board of Directors of Helix Technology Corporation.
	 
	2.10	 	Break In Service shall mean a 12 consecutive month period commencing with an
Employee’s Termination Date during which time the individual fails to complete one Hour of
Service.
	 
	2.11	 	Code shall mean the Internal Revenue Code of 1986, as amended from time to time and
any regulations issued thereunder. Reference to any section of the Code shall include any
successor provision thereto.
	 
	2.12	 	Company shall mean Helix Technology Corporation and any successor entity which may
continue the Plan.
	 
	2.13	 	Compensation shall mean effective January 1, 1998, the total salaries, wages and
commissions paid to a Participant by a Participating Company in any Plan Year, including any
salary deferrals made by the Participant to a plan maintained by the Company or a
Participating Company which meets the requirements of Sections 125 and 132(f) of the Code, but
shall exclude any cash bonuses paid by the Company. During periods of total disability, it
shall be assumed that a Participant continued to receive Compensation equal to his annual base
salary at the time such disability was incurred.
	 
	 	 	Compensation shall also include any pre-tax employee contributions paid on behalf of the
Participant to the Helix Technology Corporation Employee Savings Plan which are subject to
the provisions of Section 401(k) of the Code.
	 
	 	 	For any Plan Year, Compensation shall not exceed the limitation on annual Compensation as
defined in Code Section 401(a)(17) as indexed pursuant to Code Section 401(a)(17) and 415(d)
and appropriate regulations thereunder.

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	 	 	Effective for Plan Years ending no later than December 31, 1996, in determining the
Compensation of an Employee for purposes of the Code Section 401(a)(17) limitation, the
rules of Code Section 414(q) shall apply; provided, however, that in applying such rules the
term “family” shall include only the Spouse of the Employee and any lineal descendants of
the Employee who have not attained age 19 before the close of the Plan Year. If the
Compensation of the Employee exceeds the Code Section 401(a)(17) limitation, then the Code
Section 401(a)(17) limitation shall be pro rated among the Compensation of the Employee and
his family (as determined under this Section prior to the application of the Code Section
401(a)(17) limitation) in proportion to each such individual’s Compensation (as determined
under this Section prior to the application of the Code Section 401(a)(17) limitation).
	 
	 	 	Compensation of each Participant taken into account in determining allocation for any Plan
Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted for
cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Compensation
means compensation during the plan year or such other consecutive 12-month period over which
compensation is otherwise determined under the plan (the determination period). The
cost-of-living adjustment in effect for a calendar year applies to annual compensation for
the determination period that begins with or within such calendar year.
	 
	2.14	 	Contingent Annuitant shall mean the person designated by the Participant to receive
lifetime monthly benefit payments after his death, in accordance with the optional form of
benefit provided in Paragraph 7.4(b).
	 
	2.15	 	Contingent Annuitant Option shall mean the optional form of benefit payment set forth
in Paragraph 7.4(b).
	 
	2.16	 	Covered Compensation shall mean for each Plan Year, the average of the taxable wage
bases in effect for each calendar year during the 35-year period ending with the last day of
the calendar year in which the Participant attains (or will attain) Social Security Retirement
Age. In calculating such average, the taxable wage base in each year

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	 	 	subsequent to the year
in which the Participant’s employment terminates shall be equal to the taxable wage base in
the year in which said termination occurs.

	2.17	 	Early Retirement Date shall mean the date on which a Participant retires prior to his
Normal Retirement Date under the Plan in accordance with Paragraph 4.3.
	 
	2.18	 	Effective Date shall mean January 1, 2011, the effective date of the amendment and
restatement of this Plan unless otherwise stated herein. The original Effective Date of the
Plan is January 1, 1979.
	 
	2.19	 	Employee shall mean any person engaged in rendering personal services to the Company
who has earnings considered wages under Section 3121(a) of the Code or who is considered
disabled pursuant to Paragraph 4.5. The term “Employee” shall include any persons who perform
services for the Company or an Affiliated Company as a leased employee as described in Section
414(n)(2) of the Code for the purpose of determining the number of highly compensated
employees of the Company and for the purposes of the requirements set forth in Section
414(n)(3) of the Code. Leased employees shall not be eligible to participate in the Plan.
	 
	 	 	In the event that a leased employee as described in Section 414(n)(2) of the Code should
later become an Employee as defined herein, such employment as a leased employee with
the Company and Affiliated Companies shall be credited for Plan eligibility and vesting
purposes.
	 
	 	 	For purposes of this Section, a leased employee means an individual who is not an Employee
of the Company and who provides services to the Company if such services are provided
pursuant to an agreement between the Company and any other person, the individual has
performed such services for the Company on a substantially full-time basis for a period of
at least one year, and such services are performed under the primary direction and control
of the Company.
	 
	2.20	 	Employees’ Personal Account Plan shall mean the Helix Technology Corporation
Employees’ Personal Account Plan, as amended from time to time, and with any

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	 	 	modifications
which may be made by a Participating Company with the Board’s consent, upon adoption of such
Plan.

	2.21	 	Employees’ Personal Account Plan Benefit shall mean, as of any specified date, a
monthly benefit payable to a Participant as a straight life annuity, commencing on the first
day of the calendar month coinciding with or next following his Normal Retirement Date or
Postponed Retirement Date, whichever is later. Such benefit is equal to the amount of his
account balance under the Employees’ Personal Account Plan which is transferred to this Plan
as of such specified date and which is converted to a straight life annuity basis according to
a mortality assumption determined under the Unisex Pension 1984 Mortality Table (with a
one-year age setback) and on the immediate or deferred interest assumption used by the Pension
Benefit Guaranty Corporation, as in effect on January 1 of the calendar year in which the date
of determination occurs.
	 
	2.22	 	ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time and any regulations issued pursuant thereto.
	 
	2.23	 	Fund or Trust Fund shall mean the cash and investments held and administered by any
Insurer and/or Trustee in accordance with the provisions of this Plan.
	 
	2.24	 	Hour of Service shall mean:

	 	(a)	 	Each hour for which an Employee is directly or indirectly paid or entitled to
payment by the Company or Affiliated Company for the performance of duties, including
periods of vacation and holidays;

	 	(b)	 	Each hour for which an Employee is directly or indirectly paid or entitled to
payment by the Company or Affiliated Company (including payments made or due from a
trust fund or insurer to which the Company or Affiliated Company contributes or pays
premiums) on account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to vacation,
illness, incapacity, disability, layoff, jury duty, military duty, or leave of absence
(including a leave granted pursuant to the Family and Medical Leave Act of 1993),
provided that:

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	 	(i)	 	no more than 501 Hours of Service shall be credited under this
subparagraph (b) to an Employee on account of any single continuous period
during which the Employee performs no duties;

	 	(ii)	 	Hours of Service shall not be credited under this subparagraph
(b) to an Employee for a payment which solely reimburses the Employee for
medically related expenses incurred by the Employee, or which is made or due
under a plan maintained solely for the purpose of complying with applicable
workers’ compensation, unemployment compensation or disability insurance laws;
and

	 	(c)	 	Each hour not already included under (a) or (b) above for which back pay,
irrespective of mitigation of damages, is either awarded or agreed to by the Company or
Affiliated Company, provided that crediting of Hours of Service under this subparagraph
(c) with respect to periods described in (b) above shall be subject to the limitations
therein set forth.

	 	 	An Employee who is absent from work for a “maternity or paternity leave” shall be credited
with 501 Hours of Service during the first Plan Year in which he would have otherwise worked
less than 501 Hours of Service. An absence from work for “maternity or paternity leave”
means an absence (1) by reason of the pregnancy of the individual, (2) by reason of a birth
of a child of the individual, (3) by reason of the placement of a child with the individual
in connection with the adoption of such child by such individual, or (4) for purposes of
caring for such child for a period beginning immediately following such birth or placement.

	 	 	The number of Hours of Service to be credited under subparagraphs (a), (b) or (c) above on
account of a period during which an Employee performs no duties, and the computation periods
to which Hours of Service shall be credited under subparagraphs (a), (b) or (c) above, shall
be determined by the Benefits Committee in accordance with Section 2530.200b-2(b) and (c) of
the Regulations of the U.S. Department of Labor. No duplicate Hours of Service shall be
credited for any single period.

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	2.25	 	Insurance Contract shall mean any contract between the Company and the Insurer for
the purpose of providing benefits under this Plan.
	 
	2.26	 	Insurer shall mean any insurance company selected by the Company to provide all or
any portion of the benefits under this Plan.
	 
	2.27	 	Normal Retirement Date shall mean the date on which a Participant becomes eligible to
retire with a normal retirement income under the Plan in accordance with Paragraph 4.1.
	 
	2.28	 	Participant shall mean any Employee who participates in the Plan pursuant to Article
III, or any Employee who retires or terminates or is disabled pursuant to Paragraph 4.5 with a
vested benefit under this Plan.
	 
	2.29	 	Participating Company shall mean the Helix Technology Corporation and any Affiliated
Company or other company adopting this Plan and which the Board has authorized to participate
in the Plan.
	 
	2.30	 	Plan shall mean the Helix Technology Corporation Employees’ Pension Plan as set forth
herein, as amended from time to time, and with any modifications which may be made by a
Participating Company with the Board’s consent, upon adoption of the Plan.
	 
	2.31	 	Plan Year shall mean the 12-month period beginning on January 1 and ending on the
immediately following December 31.
	 
	2.32	 	Postponed Retirement Date shall mean the date on which a Participant retires after
his Normal Retirement Date under the Plan in accordance with Paragraph 4.2.
	 
	2.33	 	Social Security Retirement Age shall mean the age used as the retirement age for the
Participant under Section 216(l) of the Social Security Act, except that such section shall be
applied without regard to the age increase factor, and as if the early retirement age under
Section 216(l)(2) of such Act were 62.
	 
	2.34	 	Spouse shall mean the legal spouse of a Participant to whom the Participant is
married on the date on which his retirement benefits commence.

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	2.35	 	Straight Life Annuity shall mean the form of payment under which retirement income
payments are made to the Participant during his lifetime, with no further payments from the
Plan on his behalf after his death.
	 
	2.36	 	Termination Date shall mean the date on which a Participant ceases to be an Employee,
whether by termination of employment, death or retirement, subject to the provisions of
Article III.
	 
	2.37	 	Trust Agreement shall mean an agreement between Helix Technology Corporation and the
Trustee for receipt, holding, investing and distribution of all or a portion of the Trust
Fund. There may be more than one Trust Agreement entered into under this Plan.
	 
	2.38	 	Trustee shall mean the Trustee or Trustees appointed by the Company and acting in
accordance with Article IX.
	 
	2.39	 	Valuation Date shall mean the last day of each calendar month on which the New York
Stock Exchange, Inc. is open.
	 
	2.40	 	Vesting Date shall have the meaning set forth in Paragraph 4.4.
	 
	2.41	 	Vesting Service shall mean the period(s) of an Employee’s employment by the Company
or an Affiliated Company (expressed in years and completed months) for purposes of determining
eligibility for retirement benefits as determined in Paragraph 3.3.

Throughout this document, unless the context clearly requires otherwise, the singular shall include
the plural and the masculine gender shall include the feminine.

ARTICLE III

ELIGIBILITY AND SERVICE

	3.1	 	Eligibility for Participation.

	 	(a)	 	Each Employee who was a Participant in the Plan on December 31, 1996, shall
remain a Participant on January 1, 1997, provided he is employed by a Participating
Company on such date.

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	 	(b)	 	On and after January 1, 1997, each other Employee shall become a Participant in
the Plan on the first day of the month coincident with or next following the date he
meets the following conditions:

	 	(i)	 	he has completed one year of Vesting Service;

	 	(ii)	 	he has attained age 21;

	 	(iii)	 	he is an Employee of a Participating Company, and is within a
classification designated as covered by the Participating Company at the
time the Participating Company adopts the Plan, or at any time thereafter;
and

	 	(iv)	 	he is not an Employee whose terms and conditions of employment
are covered by a collective bargaining agreement unless that agreement
expressly provides for participation in this Plan.

	 	(c)	 	If such an Employee becomes a Participant and subsequently does not meet all of
the above conditions by reason of a change in employment status pursuant to Paragraph
3.6, he shall nonetheless become a Participant on the first day of any subsequent month
if such conditions are subsequently met.

	3.2	 	Benefit Service. A Participant’s Benefit Service shall be used in determining the
amount of the basic retirement benefit as provided in Article V. Except for the following
adjustments, a Participant’s Benefit Service shall equal his total period(s) of participation
in this Plan:

	 	(a)	 	Service with Non-Participating Affiliated Companies. Benefit Service
will not include periods of employment with an Affiliated Company before the Affiliated
Company adopts the Plan, except as specified by the Board in an amendment to this Plan.

	 	(b)	 	Service After Normal Retirement Date. For retirement prior to January
1, 1988, Benefit Service will not include periods of employment after the Participant’s
Normal Retirement Date. Benefit Service of a Participant who retires on or after

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	 	 	 	January 1, 1988, will include periods of employment after the Participant’s Normal
Retirement Date.

	 	(c)	 	Additional Non-Working Service Credits. Benefit Service will also
include the following periods:

	 	(i)	 	Authorized leaves of absence with or without pay granted in
accordance with uniform and non-discriminatory policies of the Benefits
Committee for Employees in similar circumstances.

	 	(ii)	 	Temporary layoff of up to one year.

	 	(iii)	 	Military leave while the Employee’s rights are protected by
law.

	 	(iv)	 	Periods of total and permanent disability as determined on a
uniform and non-discriminatory basis by the Benefits Committee.

	 	(d)	 	Service Prior to the Original Effective Date. In no event shall
Benefit Service include any periods of employment prior January 1, 1979, to the
original Effective Date of the Plan.

	3.3	 	Vesting Service. A Participant’s Vesting Service shall be used in determining
eligibility for participation in the Plan as well as entitlement to benefits under the Plan.
A Participant’s Vesting Service shall equal his Benefit Service with the following
adjustments:

	 	(a)	 	Service Before Participation. Except for purposes of Paragraph 3.1,
Vesting Service will include periods of employment by the Participating Company prior
to an Employee’s eligibility for participation in this Plan but not prior to such
Company’s acquisition by Helix Technology Corporation or acquisition by one of its
subsidiaries.

	 	(b)	 	Service with Non-Participating Affiliated Companies. Vesting Service
will include periods of employment with an Affiliated Company before that Affiliated
Company adopts this Plan, provided, however, that no Vesting Service will be

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	 	 	 	credited for periods of employment prior to the date an organization became an Affiliated
Company, except as specified by the Board in an amendment to this Plan.

	 	(c)	 	Additional Non-Working Service Credits. Vesting Service will also
include the following periods:

	 	(i)	 	Periods during which an Employee is absent from work due to
quitting, discharge or retirement, but only if he is reemployed within the
12-month period immediately following such quit, discharge or retirement; and

	 	(ii)	 	Periods during which an Employee is absent from work for any
reason other than quit, discharge, retirement or death, until in such instances
the earlier of the first anniversary of such absence, or the date the Employee
subsequently quits, is discharged, retires or dies.

	3.4	 	Reemployment. A Participant whose employment ceases and who is subsequently
reemployed shall be treated as follows:

	 	(a)	 	Termination Prior to Vesting Date. A Participant whose employment
terminates for any reason prior to his Vesting Date and who subsequently is reemployed
before his total consecutive Breaks In Service exceed the greater of five such Breaks
and his total Vesting Service accumulated prior to such termination, shall
automatically be reinstated as a Participant, and his Benefit Service and Vesting
Service accumulated prior to his termination shall be added to any Benefit Service and
Vesting Service accumulated during his subsequent periods of employment. If such
Participant’s total consecutive Breaks In Service exceed the greater of five such
Breaks and his total Vesting Service accumulated prior to his termination, such
Participant, upon reemployment after incurring a Break In Service, shall automatically
be reinstated as a Participant in the Plan and any Vesting Service accumulated by him
prior to termination shall be added to any Vesting Service accumulated during his
subsequent period of employment. Any Benefit Service accumulated by the Participant
prior to his termination shall be disregarded.

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	 	(b)	 	Termination After Vesting Date. A Participant whose employment
terminates after his Vesting Date, and who is subsequently reemployed prior to the
commencement of payment of his retirement income, shall automatically be reinstated
as a Participant and his Benefit Service and Vesting Service accumulated prior to
his termination shall be added to any Benefit Service and Vesting Service
accumulated during his subsequent period of employment.

	 	(c)	 	Reemployment After Benefit Commencement. A Participant whose
employment terminates after his Vesting Date, and who is subsequently reemployed after
the commencement of payment of retirement income under this Plan, shall be treated as
follows:

	 	(i)	 	his benefit payments shall be suspended commencing with the
payment due in the first month in which he completes 40 or more Hours of
Service;

	 	(ii)	 	he shall be eligible for additional Benefit Service and Vesting
Service as a result of service subsequent to his reemployment in accordance
with the provisions of the Plan;

	 	(iii)	 	if he shall die during the period of subsequent employment,
retirement income shall be payable only in accordance with the provisions of
Article VI (or VII if past his Normal Retirement Date); and

	 	(iv)	 	any retirement income payable as a result of subsequent
retirement or death shall be reduced by the Actuarial Equivalent value of any
payments previously received.

	3.5	 	Transfer of Participants. Each Employee who becomes a Participant and is
subsequently transferred so that he is no longer considered eligible to accrue Benefit Service
under the Plan, shall be deemed to have become suspended under the Plan as long as he
continues to be in the employment of the Company or a non-participating Affiliated Company and
shall be subject to the following rules:

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	 	(a)	 	During any such period of suspension, Vesting Service shall accumulate but
there shall be no accumulation of Benefit Service after the date of transfer.

	 	(b)	 	The suspended Participant’s entitlement to retirement income under the Plan
shall be determined when he ceases to be an Employee of the Company or a
non-participating Affiliated Company and the amount of retirement income to which he is
entitled shall equal his Accrued Benefit determined as of the date he transferred
(except as provided in subparagraph (c) below).

	 	(c)	 	If a suspended Participant is transferred back to an employment status with the
Company or an Affiliated Company in which he is eligible to become a Participant in
this Plan, he then shall accumulate additional Benefit Service for employment
subsequent to his transfer back pursuant to Paragraph 3.2.

	3.6	 	Change in Employee Status. If an otherwise eligible Participant does not terminate
employment but ceases to be eligible to accrue benefits by reason of being included (or
becoming included) in a unit of Employees covered by a collective bargaining agreement which
does not provide by its terms for participation in this Plan or by reason of there being good
faith bargaining with respect to retirement benefits or by reason of employment within an
excluded employment classification, then unless the applicable collective bargaining agreement
provides otherwise, during any period that such a Participant is not so otherwise eligible
then the Participant shall not accrue any further Benefit Service under Paragraph 3.2 of the
Plan but shall receive additional credit for Vesting Service under Paragraph 3.3 of the Plan.
	 
	 	 	If an Employee who is not a Participant becomes a Participant by reason of change in
employment classification, he shall participate in the Plan immediately if he has satisfied
the service and age conditions of Paragraph 3.1 and would have been a Participant had he
been otherwise eligible during his period of service with the Company.
	 
	 	 	Furthermore, such Employee shall receive credit for Benefit and Vesting Service under
Paragraphs 3.2 and 3.3 without regard to whether the Employee was included or not

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	 	 	included in a unit of Employees covered by a collective bargaining agreement prior to such change in
employment classification.
	 
	 	 	If an Employee transfers from a non-participating Affiliated Company to a participating
Affiliated Company, such that he is eligible to become a Participant, he shall be eligible
for Benefit and Vesting Service from his date of employment by such non-participating
Affiliated Company (but only from the date such Company became an Affiliated Company) as if
he had always been employed by a Company which participated in this Plan.
	 
	 	 	In regard to employees transferring from collective bargaining units or from
non-participating Affiliated Companies to participation in this Plan, the basic retirement
amount determined pursuant to Paragraph 5.1 shall be reduced by the Actuarial Equivalent of
any benefit that accrued under any other pension plan to which any Company or Affiliated
Company contributed.
	 
	 	 	For purposes of this Plan, an Employee is covered by a collective bargaining agreement if he
is included in a unit of Employees covered by an agreement which the Secretary of Labor
finds to be a collective bargaining agreement between employee representatives and one or
more companies.
	 
	3.7	 	Uniformed Services Employment and Reemployment rights Act of 1994. Notwithstanding
any provision of this Plan to the contrary, contributions, benefits and service credit with
respect to qualified military service will be provided in accordance with Section 414(u) of
the Code.

ARTICLE IV

ELIGIBILITY FOR RETIREMENT INCOME

	4.1	 	Normal Retirement Date. The Normal Retirement Date of a Participant shall be the
first day of the month coincident with or next following his 65th birthday. A Participant who
attains his Normal Retirement Date shall be entitled to a normal retirement income determined
pursuant to Paragraph 5.2.

17

 

	4.2	 	Postponed Retirement Date. If a Participant remains employed after attainment of his
Normal Retirement Date, such Participant shall not be entitled to receive payments of his
retirement income until he actually retires. Retirement income shall begin on the first day
of the month following the last day such Participant was employed after his Normal Retirement
Date, and such first payment date shall be the Participant’s Postponed Retirement Date.
	 
	 	 	If a Participant retires in accordance with this Paragraph 4.2 prior to January 1, 1988, the
amount of his monthly retirement income from this Plan shall be the same as it would have
been if he had retired on his Normal Retirement Date. On and after January 1, 1988, if a
Participant retires in accordance with this Paragraph 4.2, the amount of is monthly
retirement income from this Plan shall be calculated based on his Benefit Service and
Average Compensation as of his Postponed Retirement Date. In any event, a Participant’s
Employees’ Personal Account Plan Benefit shall be determined as of his Postponed Retirement
Date.
	 
	4.3	 	Early Retirement Date. A Participant may retire on the first day of any month
following his 50th birthday, provided he has completed at least five years of Vesting Service.
Any such date of retirement shall be the Participant’s Early Retirement Date.
	 
	 	 	A Participant retiring on an Early Retirement Date shall be entitled to an early retirement
income determined pursuant to Paragraph 5.3.
	 
	4.4	 	Vesting Date. The Vesting Date of a Participant shall be the earlier of:

	 	(a)	 	his completion of five years of Vesting Service;

	 	(b)	 	his attainment of age 65.

	 	 	A Participant whose Termination Date occurs before he is eligible to retire on a Normal or
Early Retirement Date, but on or after he has attained his Vesting Date under the Plan,
shall be entitled to a deferred vested retirement income determined pursuant to Paragraph
5.4.

18

 

	 	 	A Participant who terminates prior to his Vesting Date shall be entitled to a benefit under
this Plan equal to his Employees’ Personal Account Plan Benefit as described in Paragraph
2.21.
	 
	4.5	 	LTD Receipt. Contrary provisions of this Plan notwithstanding, if a Participant is
eligible to receive benefits under the Company’s long-term disability plan and is receiving
such benefits, he shall not be eligible to receive benefits under this Plan until such
long-term disability plan benefits have ceased, unless benefits are required to commence
pursuant to Paragraph 7.5. During the period of time a Participant is receiving benefits
under such long-term disability plan, he shall for purposes of this Plan be considered an
Employee of the Company and, accordingly, shall be eligible to receive additional Benefit
Service, additional Vesting Service and any applicable death benefits, as provided under this
Plan.

ARTICLE V

AMOUNT OF RETIREMENT INCOME AND PAYMENTS

	5.1	 	Basic Retirement Amount. Subject to the maximum benefit limitations under Paragraph
5.5, a Participant’s basic retirement amount shall be equal to (a) plus (b) below:

	 	(a)	 	The basic retirement amount, payable monthly, in the form of a Straight Life
Annuity, beginning on the Participant’s retirement date shall be 1/12 of (i) plus (ii)
plus (iii) minus (iv) below where:

	 	(i)	 	Equals 1.3% of a Participant’s Average Compensation multiplied
by years of Benefit Service up to a maximum of 25 years;

	 	(ii)	 	Equals. 6% of a Participant’s Average Compensation in excess of
his Covered Compensation multiplied by years of Benefit Service up to a maximum
of 25 years;

	 	(iii)	 	Equals 1.0% of a Participant’s Average Compensation multiplied
by years of Benefit Service over 25 years; and

19

 

	 	(iv)	 	Equals the Participant’s Employees’ Personal Account Plan
Benefit, or the value of such benefit if the Participant’s Account under the
Helix Technology Corporation Employees’ Personal Account Plan had been
distributed to such Participant in accordance with provisions of that plan
pursuant to Paragraph 2.1; provided, however, that the amount of the offset
under this subparagraph (iv) shall not be greater than the sum of (b)(i),
(b)(ii) and (b)(iii) above.
	 
	 	 	 	In no event shall the basic retirement amount of a Participant determined
under this subparagraph (a) be less than the basic retirement amount that
had accrued to the Participant as of December 31, 1988, under the terms of
the Plan as it existed on such date.

	 	(b)	 	Except in the case of a Participant who has received a distribution under the
Helix Technology Corporation Employees’ Personal Account Plan, an additional basic
retirement amount shall be payable under this Plan, equal to the Employees’ Personal
Account Plan Benefit determined pursuant to Paragraph 2.21.
	 
	 	 	 	For the purpose of providing for the benefit in this subparagraph (b) a
Participant’s Account attributable to Company contributions under the Helix
Technology Corporation Employees’ Personal Account Plan shall be transferred, to the
extent permitted under such plan, to this Plan, and shall be applied as appropriate
to provide the benefit herein described.

	5.2	 	Normal Form of Retirement Income. The normal form of retirement income of a
Participant shall be his basic retirement amount as set forth in Paragraph 5.1 reduced, if
applicable, as follows:

	 	(a)	 	If a Participant has a Spouse on the date his retirement income is to begin,
the normal form of payment shall be a Contingent Annuitant Option, with the Spouse as
Contingent Annuitant, entitled to receive 50% of the Participant’s reduced amount of
retirement income. Such a Participant’s basic retirement amount shall

20

 

	 	 	 	be reduced so it is the Actuarial Equivalent of the Straight Life Annuity as calculated in Paragraph
5.1.

	 	(b)	 	If a Participant does not have a Spouse on the date his retirement is to begin,
the normal form of payment shall be a Straight Life Annuity with no amount of
retirement income payable after the Participant’s death and the basic retirement amount
calculated in Paragraph 5.1 shall not be reduced.

	 	(c)	 	If a Participant was a former member of the Bargaining Unit Retirement Plans of
Cryogenic Technology, Inc. and CTI-Nuclear, Inc. and does not have a Spouse on the date
his retirement is to begin, the normal form of payment of such Participant’s Accrued
Benefit shall be under the 120-months Certain and Life Income Option.
	 
	 	 	 	If such Participant has a Spouse on the date his retirement is to begin, the normal
form of payment shall be made under a Contingent Annuitant Option, with the Spouse
as Contingent Annuitant, entitled to receive 50% of the Participant’s adjusted
amount of retirement income. Such a Participant’s Accrued Benefit shall be the
Actuarial Equivalent of the 120-Months Certain and Life Income Option.

	5.3	 	Early Retirement Income. A Participant who retires on an Early Retirement Date shall
be entitled to retirement income beginning at his Normal Retirement Date equal to the Accrued
Benefit determined as of his Early Retirement Date. If the Participant elects to begin
receiving his retirement income on his Early Retirement Date (or the first of any month prior
to his Normal Retirement Date), such Early Retirement Income shall be reduced by 6% per year
(0.5% per month) for each year that his Early Retirement Date precedes his Normal Retirement
Date. In no event shall the early retirement reduction be
greater than the reduction that would result based on the plan’s definition of actuarial
equivalent.
	 
	 	 	In no event shall the benefit determined pursuant to Paragraph 5.1(a)(i), (ii) and (iii) be
less than it would have been on any prior Early Retirement Date if the Participant had
actually retired on such earlier date and benefits had commenced at that point.

21

 

	5.4	 	Deferred Vested Retirement Income. If a Participant is entitled to a deferred vested
retirement income pursuant to Paragraph 4.4, such retirement income shall be determined in
accordance with the following provisions:

	 	(a)	 	If the Participant does not make written request for his retirement income to
begin before his Normal Retirement Date, his deferred retirement income shall be
payable on his Normal Retirement Date and shall be equal to his Accrued Benefit.

	 	(b)	 	If such a Participant gives 90 days written notice for his deferred retirement
income to begin on an Early Retirement Date, his deferred retirement income shall be
equal to the Actuarial Equivalent of the amount calculated under (a) above.

	5.5	 	Maximum Benefit. Any other provision of the Plan to the contrary notwithstanding, in
no event may a Participant’s annual retirement income payable under the Plan and any other
defined benefit pension plan of the Company or an Affiliated Company exceed the lesser of (a)
or (b) below determined in accordance with Sections 415(b) and (c)(3) of the Code:

	 	(a)	 	The lesser of (i) or (ii) below, but subject to subparagraphs (iii) through
(xi) below:

	 	(i)	 	100% of his average compensation in the three consecutive
highest paid calendar years while a Participant in the Plan.

	 	(ii)	 	$90,000 (as adjusted for increases in the cost of living as
provided in rules and regulations under Section 415 of the Code, adopted by the
Secretary of the Treasury).

	 	(iii)	 	In the case where a benefit is payable prior to the
Participant’s Social Security Retirement Age, the dollar limitation in
subparagraph (ii) above shall be adjusted so that it is the actuarial
equivalent of an annual benefit of $90,000 (as adjusted for changes in the cost
of living pursuant to

22

 

	 	 	 	regulations prescribed by the Secretary of the Treasury)
beginning at the Social Security Retirement Age.
	 
	 	 	 	The actuarial equivalent shall be determined in such manner as the Secretary
of the Treasury may prescribe which is consistent with the reduction for
old-age insurance benefits commencing before the Social Security Retirement
Age under the Social Security Act. For purposes of determining actuarial
equivalence hereunder, the interest rate assumption shall be based on the
greater of the Actuarial Equivalent interest rate assumption under the Plan
and an assumption of five percent per year. The mortality table for this
purpose shall be the applicable mortality table promulgated by the IRS
pursuant to Code Section 415(b)(2) as in effect for the January of the Plan
Year in which the Participant’s benefit commences.

	 	(iv)	 	In the case where a benefit commences after a Participant has
attained Social Security Retirement Age, the dollar limitation in subparagraph
(ii) above shall be adjusted so that it is the actuarial equivalent of an
annual benefit of $90,000 (as adjusted for changes in the cost of living
pursuant to regulations prescribed by the Secretary of the Treasury) beginning
at the Social Security Retirement Age, based on the lesser of the Actuarial
Equivalent interest rate assumption under the Plan and an assumption of five
percent per year.

	 	(v)	 	If a Participant has completed less than ten years of
participation in the Plan, the Participant’s retirement income shall not exceed
the dollar limit in subparagraph (ii) above as adjusted by multiplying such
amount by a fraction, the numerator of which is the Participant’s number of
years (or parts thereof) of participation in the Plan, and the denominator of
which is ten.

	 	(vi)	 	If a Participant has completed less than ten years of service
with the Company and its Affiliated Companies, the limitations described in

23

 

	 	 	 	subparagraph (i) above and subparagraph (ix) below shall be adjusted by
multiplying such amounts by a fraction, the numerator of which is the
Participant’s number of years of service (or part thereof), and the denominator
of which is ten.

	 	(vii)	 	In no event shall subparagraphs (v) and (vi) above reduce the
limitations provided under Sections 415(b)(1) and (4) of the Code, to an amount
less than one-tenth of the applicable limitation (as determined without regard
to this Paragraph).

	 	(viii)	 	To the extent provided by the Secretary of the Treasury, subparagraphs (v)
and (vi) above shall be applied separately with respect to each change in the
benefit structure of the Plan.

	 	(ix)	 	Notwithstanding the limitations in subparagraphs (i) and (ii)
above, a benefit payable with respect to a Participant shall be deemed not to
exceed such limitations if it does not exceed $10,000 in any Plan Year provided
such Participant has not at any time participated in a defined contribution
plan maintained by the Company.

	 	(x)	 	Notwithstanding the foregoing, if a Participant’s retirement
income as of January 1, 1987 exceeds the benefit limitations under Section
415(b) of the Internal Revenue Code of 1986 (as modified by subparagraphs (iii)
through (viii) above), then, for purposes of Sections 415(b) and (e) of the
Internal Revenue Code of 1986 the dollar limitation in subparagraph (ii)
above with respect to such individual shall be equal to such Accrued
Retirement Income as of January 1, 1987.

	 	(xi)	 	Except in the case where a benefit is payable pursuant to
Paragraph 5.2(a) with the Participant’s spouse as the Contingent Annuitant, if
a benefit is payable in a benefit form other than a Straight Life Annuity, the
amount otherwise determined under this subparagraph (a) shall be the Actuarial
Equivalent of the amount payable as a straight Life Annuity.

24

 

	 	 	 	The Helix Technology Corporation Employees’ Personal Account Plan is
not deemed to be a defined benefit plan and is therefore excluded from the
foregoing.

	 	(b)	 	In the case of a Participant who has participated in a defined contribution
plan maintained by a Company or an Affiliated Company, the amount determined pursuant
to subparagraph (a) above (assuming the Participant were to continue in employment to
his Normal Retirement Date at the same earnings rate as in effect at the time his
benefit is being determined) shall be multiplied by 1.40 in the event (a)(i) applies or
1.25 in the event (a)(ii) applies and further multiplied by a fraction equal to one
minus a fraction with a numerator equal to (i) below and a denominator equal to (ii)
below:

	 	(i)	 	The sum of the annual additions made to the Participant’s
account under any defined contribution plan maintained by the Company or an
Affiliated Company, where the annual additions are equal to the sum of (a) any
employer contributions (including pre-tax contributions made on behalf of the
Employee) allocated to the account, (b) any forfeitures allocated to the
account, (c) any portion of the Participant’s after-tax contributions made
prior to January 1, 1987 that represented the lesser of one-half of such
contributions or the amount of such contributions in excess of 6% of his
Compensation, (d) all of a Participant’s after-tax contributions made after
December 31, 1986, and (e) amounts described in Sections 415(l)(1) and
419A(d)(2) of the Code. Effective for limitation years beginning after December
31, 2001 the maximum Annual Addition that may be contributed or allocated to a
Participant’s Account under the Plan for any limitation year shall not exceed
the lesser of:
	 
	 		 	(a) $40,000, as adjusted for increases in the cost-of-living under section
415(d) of the Code, or
	 
	 		 	(b) 100 percent of the participant’s compensation, within the meaning of
section 415(c)(3) of the Code, for the limitation year. The compensation

25

 

	 	 	 	limit referred to in (b) shall not apply to any contribution for medical
benefits after separation from service (within the meaning of section 401(h)
or section 419A(f)(2) of the Code) which is otherwise treated as an Annual
Addition.
	 
	 	(ii)	 	The sum for each calendar year of the Participant’s employment
with the Company or an Affiliated Company of the lesser of (a) 1.4 multiplied
by 25% of the Participant’s earnings for the calendar year, or (b) for each
calendar year after 1981, 1.25 multiplied by $30,000 as adjusted for increases
in the cost of living as provided under rules and regulations adopted by the
Secretary of the Treasury and for each calendar year prior to 1982, 1.25
multiplied by the amount for such calendar year determined in accordance with
Section 415(e)(3)(B)(ii) of the Code.

	 	 	 	It is intended that the benefit accrual under this Plan be limited as necessary to
comply with this Paragraph 5.5(b) before any limit is imposed on a defined
contribution plan maintained by the Company.
	 
	 	 	 	In the event application of subparagraph (b) above on January 1, 1983 would result
in a reduction of a Participant’s Accrued Benefit as of December 31, 1982, the
numerator described in subparagraph (b)(i) shall be reduced by the amount which is
necessary to avoid a reduction in the Participant’s Accrued Benefit, and the amount
so determined shall be applied to reduce such numerator for the Participant at any
time his benefit is being determined.
	 
	 	 	 	For the purposes of this Paragraph 5.5, an Affiliated Company shall be determined by
assuming the phrase “more than 50 percent” is substituted for the phrase “at least
80 percent” wherever it appears in Section 1563 of the Code.
	 
	 	 	 	Effective January 1, 2000, Paragraph 5.5(b) and all cross references to such
paragraph shall no longer apply.

	5.6	 	Minimum Benefit. Effective January 1, 1994, for a Participant who had Compensation
in excess of $150,000 for any period prior to January 1, 1994 that was

26

 

	 	 	counted in Average
Annual Compensation on December 31, 1993, the benefit under Paragraph 5.1 shall not be less
than the greater of:

	 	(a)	 	the Participant’s Accrued Benefit determined under Paragraph 5.1 as applied
using the Employee’s total years of Benefit Service (up to 25 years) and Compensation
limited to $150,000 or such higher amount indexed pursuant to regulations under Code
Section 401(a)(17).
	 
	 	(b)	 	the sum of:

	 	(i)	 	the Participant’s Accrued Benefit as of December 31, 1993
frozen in accordance with Treasury Regulations 1.401(a)(4)-13, and
	 
	 	(ii)	 	the Participant’s Accrued Benefit determined under Paragraph
5.1 as applied using only the Employee’s years of Benefit Service earned after
December 31, 1993.

ARTICLE VI

DEATH BENEFITS

	6.1	 	Immediate Pre-Retirement Spouse’s Benefit. In the event of the death of an active,
disabled, or vested terminated Participant who was eligible to retire on an Early Retirement
Date pursuant to Paragraph 4.3, a monthly retirement benefit shall be payable to his Spouse.
Such amount shall be determined as if:

	 	(a)	 	the Participant had retired and elected retirement income payments to begin on
the first day of the month coinciding with or next preceding his date of death, and
	 
	 	(b)	 	his retirement income was payable in the normal form of a Contingent Annuitant
Option with his Spouse, as Contingent Annuitant, entitled to receive 50% of the amount
of the Participant’s retirement income.
	 
	 	 	 	Payments shall begin to the Spouse on the first day of the month following the
Participant’s death and shall continue to be made on the first day of each month
thereafter during the Spouse’s lifetime.

27

 

	 	 	 	Notwithstanding the above, in no event will the Spouse’s Benefit be less than the
Actuarial Equivalent value of the Participant’s Personal Account Plan Benefit
determined on the basis of the Spouse’s age at the time the Spouse’s benefit
commences.
	 
	 	 	 	If a Participant shall die after his Normal Retirement Date but prior to his
Postponed Retirement Date, his Spouse shall receive the benefit described above. If
a Spouse’s benefit is payable in accordance with the preceding sentence, no benefit
will be payable under Article VII.

	6.2	 	Deferred Pre-Retirement Spouse’s Benefit. In the event of the death of an active,
disabled, or vested terminated Participant on or after his Vesting Date, but prior to being
eligible for early retirement pursuant to Paragraph 4.3, a monthly retirement benefit shall be
payable to his Spouse. Such amount shall be determined as if:

	 	(a)	 	the Participant separated from service as of his date of death (if he were
still an Employee), then
	 
	 	(b)	 	survived until the first date he would have been eligible for early retirement
benefits according to Paragraph 4.3,
	 
	 	(c)	 	retired, electing immediate payment of benefits under the Contingent Annuitant
Option, with his Spouse as the Contingent Annuitant, entitled to receive 50% of the
amount of the Participant’s retirement income, and then
	 
	 	(d)	 	died on the day after the date in (b) above.
	 
	 	 	 	Payments shall begin to the Spouse on the first date the Participant would have been
eligible for early retirement benefits according to Paragraph 4.3, and shall
continue to be made on the first day of each month thereafter during the Spouse’s
lifetime.
	 
	 	 	 	Notwithstanding the foregoing, in no event will the Spouse’s Benefit be less than
the Actuarial Equivalent value of the Participant’s Employees’ Personal Account

28

 

	 	 	 	Plan
Benefit determined on the basis of the Spouse’s age at the time the Spouse’s benefit
commences.
	 
	 	 	 	If a benefit is payable under Paragraph 6.1, no benefit shall be payable under this
Paragraph 6.2.

	6.3	 	Applicability to Certain Former Vested Terminated Employees. The provisions of this
Article VI relating to the pre-retirement surviving Spouse benefit shall not apply to any
vested terminated Participant who did not perform an Hour of Service after August 22, 1984
unless such vested terminated Participant;

	 	(i)	 	performed an Hour of Service after December 31, 1975,
	 
	 	(ii)	 	had completed at least 10 years of Vesting Service as of his
date of termination of employment, and
	 
	 	(iii)	 	elects, on such forms as the Benefits Committee may approve,
for such provisions to apply.

	6.4	 	HEART Act Provisions. The following HEART Act Provisions shall apply:

	 	(i)	 	Death Benefits. Effective for deaths occurring after
December 31, 2006, in the case of a Participant who dies while performing
qualified military service (as defined in Code section 414(u)), the survivors
of the Participant are entitled to any additional benefits (other than benefit
accruals relating to the period of qualified military service) provided
under the Plan had the participant resumed and then terminated employment on
account of death.
	 
	 	(ii)	 	Differential Wage Payments. Effective January 1, 2009,
(i) an individual receiving a differential wage payment, as defined in Code
Section 3401(h)(2), shall be treated as an Employee of the Employer making the
payment, (ii) the differential wage payment shall be treated as Compensation,
and (iii) the Plan shall not be treated as failing to meet the requirements of
any provisions described in section 414(u)I(1)9C) of the

29

 

	 	 	 	Code by reason of any
contribution to the Plan or benefit that is based on the differential wage
payment.

	 	 	Coverage shall commence as of the date that a request for coverage shall be received by the
Plan, or the date, if earlier, that such written request is witnessed by a notary public.
The Company may charge for such coverage as of the effective date of such coverage.

ARTICLE VII

NORMAL AND OPTIONAL PAYMENT FORMS OF RETIREMENT INCOME

	7.1	 	Waiver of Normal Form and Election of Optional Form of Payment. A Participant may
waive his normal form of payment described in Paragraph 5.2 provided that concurrently with
such waiver he shall elect an optional form of payment in accordance with Paragraph 7.4. Such
waiver and election may be made only during the waiver period specified in Paragraph 7.2;
otherwise, payment shall be made to him in the normal form. The Participant shall file such
forms and provide such information as the Benefits Committee may reasonably require to
determine his eligibility, qualifications of his Spouse and his amount of retirement income.
Such election shall be made in writing and shall not take effect unless either;

	 	(a)	 	the Participant’s Spouse consents in writing to such election and the Spouse’s
consent acknowledges the effect of such election and is witnessed by a notary public or
a Plan representative, or
	 
	 	(b)	 	it is established to the satisfaction of the Benefits Committee that the
Participant has no Spouse, or that the Spouse’s consent cannot be obtained because the
Spouse cannot be located, or because of such other circumstances as may be prescribed
in regulations issued pursuant to Section 417 of the Code.

	7.2	 	Waiver Period. The Benefits Committee shall furnish to each Participant a general
written explanation in nontechnical terms of the availability of the optional forms of benefit
under the Plan at least 30 days, but not more than 180 days prior to the Participant’s
designated benefit commencement date. For Plan Years beginning after December 31, 1996, the
30-day period described in the preceding sentence shall be

30

 

	 	 	modified as follows: (i) the
written explanation may be provided to the Participant after this benefit commencement date as
long as he is permitted to change his benefit election during the 30-day period following the
date the explanation is provided; and (ii) the Participant may waive the 30-day period as long
as distribution of his benefit commences more than 7 days after the explanation is provided.
	 
	 	 	Such explanation will, effective January 1, 2007, include a general explanation of the
material features and relative values of the optional forms of benefit available under the
Plan, and notice of the relative value of the option forms benefit and a description of the
right of the Participant, if any, to defer receipt of a distribution and the consequences of
failure to defer such receipt, in accordance with Treasury guidance under Code Section
411(a)(11), in a manner that would satisfy the notice requirements of Code 417(e)(3); and
will be provided no less than 30 days or more than 180 days prior to the Annuity Starting
Date.
	 
	 	 	An election to receive an optional form of benefit may be made at any time during the
election period.
	 
	 	 	The Benefits Committee shall, when necessary, mail the form to the Participant, via
certified mail, at his last address on the records of the Benefits Committee or, if deemed
appropriate, through any facilities made available by the United States Social Security
Administration. During the waiver period, the Participant may request information with
respect to the financial effect of his waiver on the normal form of payment and the election
of any available optional form of payment. Any waiver may be revoked, or election changed,
at any time prior to the due date for the Participant’s first retirement income payment on a
form approved by the Benefits Committee. Once benefit payments have commenced, no other
option may be elected, changed or revoked.
	 
	 	 	Notwithstanding the above, the Benefits Committee may use other election and waiver
procedures as permitted by Sections 401(a)(11) and 417 of the Code.

	7.3	 	Temporary Non-Payment of Retirement Income. If a Participant fails to submit the
form required under Paragraph 7.1 before the due date for his first retirement income

31

 

	 	 	payment,
the Benefits Committee shall not authorize payment of such retirement income until the
Participant furnishes the necessary information with respect to his marital status and the age
of his Spouse, if applicable.

	7.4	 	Optional Forms of Payment. The forms of benefit payment available to each
Participant shall be the Actuarial Equivalent of his retirement income on a Straight Life
Annuity basis pursuant to Paragraph 5.1. The forms of benefit, including normal and optional
forms, are as follows:

	 	(a)	 	Straight Life Annuity, under which retirement income payments are made
to the Participant during his lifetime, with no further payments from the Plan on his
behalf after his death. When applied to the basic retirement amount, the Actuarial
Equivalent factor for the Straight Life Annuity shall be 100%.
	 
	 	(b)	 	Contingent Annuitant Option, under which reduced retirement income
payments are made to the Participant during his lifetime, based on Actuarial Equivalent
factors, and payments from the Plan upon his death equal to 50%, 75% or 100%
of the payment previously payable to the Participant are continued to and for the
lifetime of a person whom he designated as his Contingent Annuitant when he elected
this option.

	 	(i)	 	If a Participant shall elect the Contingent Annuitant Option
and he dies before benefit payments commence, his election of the Contingent
Annuitant Option shall be revoked automatically and there shall be no further
payments from the Plan after his death, except as provided in Article VI.
	 
	 	(ii)	 	If a Participant shall elect the Contingent Annuitant Option
and his designated Contingent Annuitant dies before benefit payments commence,
his election of the Contingent Annuitant Option shall be null and void.
	 
	 	(iii)	 	If the Participant shall elect the Contingent Annuitant Option
and benefit payments have commenced, his retirement income payments thereafter

32

 

	 	 	 	shall not be changed by reason of the death of his Contingent Annuitant during
his own lifetime.

	 	(c)	 	120-Months Certain and Life Income Option, under which reduced
retirement income payments are made to the Participant during his lifetime, based on
Actuarial Equivalent factors, with the provision that if the Participant’s death occurs
after benefits have commenced and before he has received 120 monthly payments, the
value of the remaining number of such payments shall be paid to the person designated
as his Beneficiary. This option is available only if, as of the benefit commencement
date, the joint life expectancy of the Participant and his Beneficiary equals or
exceeds 120 months.
	 
	 	(d)	 	Social Security Level Income Option, available only with respect to
early retirement income payments, under which amounts payable to the Participant under
Paragraph 5.3, are increased until the earliest date on which he first could elect to
receive old-age benefits under the Social Security Act, and decreased
during his lifetime thereafter. The amount of increase and decrease, when
considered together with the Participant’s expected old-age benefits under the
Social Security Act at the earliest date on which he could begin to receive such
benefits, shall result, insofar as is practicable, in a constant total income during
his lifetime.
	 
	 	(e)	 	Lump Sum Option, under which a Participant who retires on an Early
Retirement Date may receive the Actuarial Equivalent of his monthly retirement income
in a single lump sum in lieu of any monthly benefit from the Plan.
	 
	 	 	 	In the case of a Participant who is entitled to a deferred vested retirement income
pursuant to Paragraph 4.4, in the event that such lump sum amount does not exceed
$20,000, the Participant may elect to receive such amount as soon as practicable
following the Valuation Date coincident with or immediately following the date such
Participant incurs a Break in Service, provided his Spouse consents to such form of
distribution pursuant to Paragraphs 7.1 and 7.2.

33

 

	7.5	 	General Limitation. Anything in the foregoing to the contrary notwithstanding all
distributions under the Plan shall be made in accordance with the requirements of Code Section
401(a)(9) and regulations thereunder, including the incidental death benefit requirements of
Treasury Regulation Section 1.401(a)(9)-2. The provisions of Code Section 401(a)(9) shall
override any distribution options under the Plan if inconsistent with such Code Section.
	 
	 	 	Unless the Participant elects otherwise, retirement income payments shall commence no later
than the 60th day after the close of the Plan Year in which the latest of the following
occurs:

	 	(a)	 	the Participant attains age 65, or
	 
	 	(b)	 	the 10th anniversary of the date the Participant commenced participation, or
	 
	 	(c)	 	the Participant terminates employment with the Company or an Affiliated
Company.
	 
	 	 	 	Further, distribution of benefits shall not be deferred beyond the April 1 following
the calendar year in which the Participant attains age 70-1/2, or if later (but only
in the case of a Participant other than a 5% owner of the Company for the Plan Year
ending in the calendar year in which such Participant attains age 70-1/2), the April
1 following the calendar year in which the Participant terminates employment.
Effective January 1, 1990, for any Participant who attains age 70-1/2 after December
31, 1987, distribution of benefits hereunder may not be deferred beyond the April 1
of the year next following the close of the calendar year in which the Participant
attains age 70-1/2. His Accrued Benefit shall be determined pursuant to Article 5
as of the close of the calendar year in which he attains age 70-1/2. For subsequent
required distributions, his Accrued Benefit shall be recalculated at the end of each
calendar year thereafter until his actual Postponed Retirement Date or his date of
death. Recalculation of the Accrued Benefit is described in the following
subparagraph (d).

34

 

	 	 	 	Effective January 1, 2002, distributions of benefits shall not be deferred beyond
the April 1 following the calendar year in which the Participant attains age 70-1/2,
or if later, at the Participant’s election (but only in the case of a Participant
other than a 5% owner of the Company within the meaning of Section 416(i) of the
Code), the April 1 following the calendar year in which the Participant terminates
employment. If a Participant’s annuity starting date is later than April 1 of the
calendar year following the calendar year in which he attains age 70-1/2, his
Accrued Benefit shall be actuarially adjusted to reflect the deferral of his annuity
starting date from April 1 of the calendar year following his attainment of age
70-1/2 to his actual annuity starting date, to the extent such actuarial adjustment
exceeds each year’s benefit accrual as determined under Article V and Code Section
401(a)(9) and regulations thereunder.

	 	(d)	 	The recalculation of the Participant’s Accrued Benefit under Article 5 shall be
performed as follows:

	 	(i)	 	a new Accrued Benefit shall be calculated using the
Participant’s Average Earnings, Years of Credited Service, and Social Security
Benefit at the close of the calendar year;

	 	(ii)	 	the new Accrued Benefit as determined under (i) above shall be
reduced by the Actuarial Equivalent value of the Retirement Benefit payments
previously received by the Participant during months in which Retirement
Benefits would have been suspended provided that the resulting benefit shall
not be less than the Accrued Benefit before it is recalculated under (i) above.

	 	 	 	Upon the death of a Participant after payment of retirement income has
commenced, any remaining payments shall be made no less rapidly than under
the form of payment in effect at the Participant’s death. Upon the death of
a Participant prior to the date payment of retirement income has commenced,
payment of a death benefit, if any, to the Participant’s Spouse shall
commence no later than the April 1 following the calendar year in 

35

 

	 	 	 	which the Participant would have attained age 70-1/2, or if later, within one year
following the date of the Participant’s death, and payment of a death
benefit to a person other than the Participant’s Spouse shall commence no
later than one year following the Participant’s death. In any event
distribution of benefits hereunder shall not be permitted in a manner which
would violate the incidental death benefit requirements of Section 401 of
the Code.

	7.6	 	Direct Rollover Provisions.

	 	(a)	 	This Section applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a distributee’s election under this Section, a distributee may elect, at the
time and in the manner prescribed by the Plan Administrator, to have any portion of
an eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover.

	 	(b)	 	Definitions.

	 	(i)	 	‘Eligible rollover distribution’: An eligible rollover
distribution is any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution does
not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or
life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee’s designated beneficiary,
or for a specified period of ten years or more; any distribution to the extent
such distribution is required under Section 401(a)(9) of the Code; any
distribution that is a hardship distribution described in Section
401(k)(2)(B)(i)(IV) of the Code; and the portion of any distribution that is
not includible in gross income (determined without regard to the exclusion for
net unrealized appreciation with respect to employer securities). For purposes
of the direct rollover provisions in section 7.6 of the Plan, any 

36

 

	 	 	 	amount that is distributed on account of hardship shall not be an eligible rollover
distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an eligible retirement plan.

	 	(ii)	 	‘Eligible retirement plan’: Effective January 1, 2008,
an eligible retirement plan is an individual retirement account describe in
section 4089(a) or 408A of the Code, an individual retirement annuity described
in section 408(b) of the Code, an annuity plan described in section 403(a) of
the Code, or a plan described in section 401(a) or section 403(b) which accepts
the Participant’s eligible rollover distribution, or section 457(b) of
the Code which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision of a
state, which agrees to separately account for amounts transferred into such
plan from this Plan. The definition of eligible retirement plan shall also
apply in the case of a distribution to a surviving spouse, or to a spouse or
former spouse who is the alternate payee under a qualified domestic
relations order as defined in section 413(p) of the Code. Effective January
1, 2010 in the case of an eligible rollover distribution to a non-spouse
beneficiary, an eligible retirement plan is an individual retirement account
or individual retirement annuity.

	 	(iii)	 	‘Distributee’: A distributee includes an Employee or
former Employee. In addition, the Employee’s or former Employee’s surviving
spouse and the Employee’s or former Employee’s spouse or former spouse who is
the alternate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Code, are distributees with regard to the interest of the
spouse or former spouse. Furthermore, effective January 1, 2010, the Employee’s
non-spouse beneficiary is a distributee with regard to the interest of the
non-spouse beneficiary

	 	(iv)	 	‘Direct rollover’: A direct rollover is a payment by
the plan to the eligible retirement plan specified by the distributee.

37

 

	7.7	 	Cash Out of Small Benefits. Effective April 1, 1998, notwithstanding the other
provisions of this Plan to the contrary, if the Actuarial Equivalent present value of a
terminated, retiring or deceased Participant’s vested Accrued Benefit payable under the normal
form under Paragraph 5.2 or as a pre-retirement survivor annuity under Paragraph 6.1(b) does
not exceed one thousand dollars ($1,000) prior to the commencement of such benefit, the
Administrator shall direct that the present value of such Participant’s vested Accrued Benefit
be paid to him or, in the case of his death, his Spouse in a lump sum. Payment shall be made
as soon as administratively practicable following the Participant’s Retirement Date, termination date, or date of death. Written
consent of the Participant’s Spouse shall be required when distribution of benefits in an
annuity form has already commenced. No other benefits of any type shall then be payable to
such former Participant or his Beneficiaries. If the present value of a terminated,
retiring or deceased Participant’s vested Accrued Benefit payable under the Plan is zero
(0), the Participant shall be deemed to have received a distribution of his entire Accrued
Benefit immediately upon termination, retirement or death.

	7.8	 	Minimum Distribution Requirements The provisions of this article will apply for
purposes of determining required minimum distributions for calendar years beginning with the
2003 calendar year.

	 	 	The Participant’s entire interest will be distributed, or begin to be distributed, to the
Participant no later than the Participant’s required beginning date.

	 	 	If the Participant dies before distributions begin, the Participant’s entire interest will
be distributed, or begin to be distributed, no later than as follows

	 	(i)	 	If the Participant’s surviving spouse is the Participant’s sole
beneficiary, distributions to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar year in which the
Participant dies, or by December 31 of the calendar year in which the
Participant would have attained age 70 1/2, if later

38

 

	 	(ii)	 	If the Participant’s surviving spouse is not the Participant’s
sole designated beneficiary, distributions to the designated beneficiary will
begin by December 31 of the calendar year immediately following the calendar
year in which the Participant died.

	 	(iii)	 	If there is no designated beneficiary as of September 30 of
the year following the year of the Participant’s death, the Participant’s
entire interest will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

	 	(iv)	 	If the Participant’s surviving spouse is the Participant’s sole
designated beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this section will apply as
if the surviving spouse were the Participant

	 	 	Unless the Participant’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the required beginning date, as of the
first distribution calendar year distributions will be made in accordance with the sections
this article. If the Participant’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made in accordance
with the requirements of section 401(a)(9) of the Code and the Treasury regulations.

	 	 	During the Participant’s lifetime, the minimum amount that will be distributed for each
distribution calendar year is the lesser of the quotient obtained by dividing the
Participant’s account balance by the distribution period in the Uniform Lifetime Table set
forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s age as
the Participant’s birthday in the distribution calendar year, or if the Participant’s sole
designated beneficiary for the distribution calendar year is the Participant’s spouse, the
quotient obtained by dividing the Participant’s account balance by the number in the Joint
and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s
birthdays in the distribution calendar year.

39

 

	 	 	Required minimum distributions will be determined under this section beginning with the
first distribution calendar year up to and including the distribution calendar year that
includes the Participant’s date of death.

	 	 	If the Participant dies before the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each distribution calendar year
after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the remaining life expectancy of the Participant’s
designated beneficiary.

	 	 	If the Participant dies before the date distributions begin and there is no designated
beneficiary as of September 30 of the year following the year of the Participant’s death,
distribution of the Participant’s entire interest will be completed by December 31 of the
calendar year containing the fifth anniversary of the Participant’s death.

	 	 	If the participant dies before the date distributions begin, the Participant’s surviving
spouse is the sole designated beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving spouse this section will apply as if
the surviving spouse were the Participant.

	 	 	Participants or beneficiaries may elect on an individual basis whether the 5-year rule or
the life expectancy rule of this article applies to distributions after the death of a
Participant who has a designated beneficiary. The election must be made no later than the
earlier of September 30 of the calendar year in which distribution would be required to
begin under sections of this article, or by September 30 of the calendar year which contains
the fifth anniversary of the Participant’s death.

ARTICLE VIII

OPERATION OF THE PLAN

	8.1	 	Administrator. The Administrator of the Plan is Helix Technology Corporation.

	8.2	 	Named Fiduciaries. The named fiduciaries, who shall have authority to control and
manage the operation and administration of the Plan, are as follows:

40

 

	 	(a)	 	the Benefits Committee, which shall have the authority and duties specified in
Article VIII hereof;
	 
	 	(b)	 	the Trustee, which shall have the authority and duties specified in the Plan
and Trust Agreement;
	 
	 	(c)	 	the Insurer, which shall be a fiduciary only with respect to any Funds held in
a separate account under the Insurance Contract; and
	 
	 	(d)	 	the Company.

	8.3	 	Actions of Fiduciaries. Any fiduciary with respect to the Plan:

	 	(a)	 	may serve in more than one fiduciary capacity with respect to the Plan;
	 
	 	(b)	 	may employ one or more persons to render advice with regard to or carry out any
responsibility that such fiduciary has under the Plan; and
	 
	 	(c)	 	may rely upon any direction, information or action of any other fiduciary,
acting within the scope of its responsibilities under the Plan, as being proper under
the Plan; unless he has knowledge that such will result in a breach of fiduciary duty.

	8.4	 	Procedures for Plan Operation.

	 	(a)	 	The adoption, amendment and termination of the Plan and appointment of certain
fiduciaries to carry out the operation and administration of the Plan shall be the
responsibility of Helix Technology Corporation. The procedures for amending and
terminating the Plan and for appointing such fiduciaries are set forth in Articles X
through XIV.
	 
	 	(b)	 	The responsibilities of the Benefits Committee and the Trustee and/or the
Insurer for the operation and administration of the Plan are allocated among them by
virtue of the several Articles of this Plan and the Trust Agreement and/or Insurance
Contract wherein their respective duties are specified.

41

 

	 	(c)	 	Each fiduciary shall have only the authority and duties as are specifically
given to it under this Plan, shall be responsible for the proper exercise of its own
authority and duties, and shall not be responsible for any act or failure to act of any
other fiduciary to the full extent allowed by law; unless he has knowledge that such
will result in a breach of fiduciary duty.

	8.5	 	Funding Policy. The funding policy and method under the Plan, and the procedures for
carrying out such policy and method, shall be in accordance with Article IX and the reports of
the Actuary, and shall, additionally, include determination by the Benefits Committee from
time to time of expected disbursements from the Fund for benefit payments, or otherwise in
accordance with the Plan.

	8.6	 	Assets in Fund. All assets of the Plan shall be held by the Trustee and/or Insurer
who upon acceptance of such office shall have exclusive authority and discretion to manage and
control the assets of the Plan, except to the extent such authority has been delegated to an
investment manager and subject to the terms of the Plan, Trust Agreement and/or Insurance
Contract.

ARTICLE IX

CONTRIBUTIONS AND FUNDING

	9.1	 	Contributions by the Company. All contributions to provide benefits under Articles V
and VI shall be made by each Participating Company from time to time, any forfeiture of the
interest of any Participant in the Trust Fund being applied to reduce the amount of such
contributions. The Board, on the basis of actuarial estimates made by the Actuary, will
recommend the amount of contributions for each Participating Company which will accomplish the
purposes of the Plan.

	9.2	 	Expenses. The reasonable expenses incident to the operation of the Plan, including
premiums for termination insurance payable to the Pension Benefit Guaranty Corporation, fees
for professional services and the costs of such other technical or clerical assistance as may
be required, shall be paid out of the Trust Fund, to the extent not paid

42

 

	 	 	by each Participating
Company. The Company shall not be obligated to pay any such expenses.

	9.3	 	Trust Agreement and/or Insurance Contract. The Company shall enter into a Trust
Agreement with the Trustee and/or Insurance Contract with the Insurer, or the Company shall
direct the Trustee to enter into an Insurance Contract with the Insurer. The Trustee and/or
the Insurer shall receive the contributions to the Fund made by each Company pursuant to the
Plan and shall hold, invest, reinvest, and distribute such Fund in accordance with the terms
and provisions of the Trust Agreement and/or Insurance Contract as applicable. In the event
of any conflict between any such Trust Agreement or Insurance Contract and the Plan, the
provisions of the Plan shall be controlling. The Company shall determine the form and terms
of such Trust Agreement and may modify such Trust Agreement from time to time to accomplish
the purpose of this Plan and may, in its sole discretion, remove any Trustee and select any
successor Trustee. The Company must approve the form and terms of such Insurance Contract
offered by the Insurer and may request modifications of such Insurance Contract from time to
time to accomplish the purposes of this Plan and may, in its sole discretion, remove any
Insurer and select any successor Insurer. The Trust Agreement and/or Insurance Contract may
provide that the Fund thereunder may be used to fund this Plan and other qualified plans
maintained by the Company or any Affiliated Company which meet the requirements of Section
401(a) of the Code; provided, however, that the assets of this Plan shall not be used to
provide for benefits under any such other plan.

	9.4	 	Contributions Conditioned on Tax Deductibility. All Contributions shall be
conditioned upon their deductibility by the Participating Employer for federal income tax
purposes; provided, however, that no contributions shall be returned to a Participating
Employer, except as provided in Paragraph 9.5.

	9.5	 	Return of Contributions. Notwithstanding any other provision of this Plan, a Company
Contribution upon request by the Participating Employer may be returned to the Participating
Employer who made the contribution if:

	 	(a)	 	the contribution was made by reason of a mistake of fact; or

43

 

	 	(b)	 	the contribution was conditioned upon its deductibility for income tax purposes
and the deduction was disallowed; and
	 
	 	(c)	 	Such contribution shall be returned to the Participating Employer within one
year of the mistaken payment of the contribution or the disallowance of such deduction,
as the case may be.

	 	 	The amount which may be returned to the Participating Employer is the excess of the amount
contributed over the amount that would have been contributed had there not occurred the
circumstances causing the excess. Earnings attributable to the excess contribution may not
be returned to the Participating Employer, but losses thereto shall reduce the amount to be
returned.

ARTICLE X

PLAN ADMINISTRATION AND THE BENEFITS COMMITTEE

	10.1	 	Appointment and Removal of Benefits Committee. The administration of the Plan shall
be vested in a Benefits Committee of not less than three (3) persons who shall be appointed by
the Board, and may include persons who are Participants in the Plan. A person appointed a
member of the Benefits Committee shall signify his acceptance in writing. The Board may
remove or replace any member of the Benefits Committee at any time in its sole discretion, and
any Benefits Committee member may resign by delivering his written resignation to the Board,
which resignation shall become effective upon its delivery or at any later date specified
therein. If at any time there shall be a vacancy in the membership of the Benefits Committee,
the remaining member or members of the Benefits Committee shall continue to act until such vacancy is filled by
action of the Board.

	10.2	 	Officers of Benefits Committee. The Board shall appoint a chairman from among the
members of the Benefits Committee, and the Benefits Committee shall appoint as secretary a
person who may be a member of the Benefits Committee or a Participant in the Plan.

44

 

	10.3	 	Action by Benefits Committee. The Benefits Committee shall hold meetings upon such
notice, at such place or places, and at such times as its members may from time to time
determine. A majority of its members at the time in office shall constitute a quorum for the
transaction of business. All action taken by the Benefits Committee at any meeting shall be
by vote of the majority of its members present at such meeting, except that the Benefits
Committee also may act without a meeting by a consent signed by a majority of its members.
Any member of the Benefits Committee who is a Participant in the Plan shall not vote on any
questions relating exclusively to himself.

	10.4	 	Rules and Regulations. Subject to the terms of the Plan, the Benefits Committee may
from time to time accept actuarial tables and adopt such bylaws, rules and regulations as it
shall deem appropriate for the administration of the Plan and for the conduct and transaction
of its business and affairs.

	10.5	 	Powers. The Benefits Committee shall have such powers as may be necessary to
discharge its duties under the Plan, including the power:

	 	(a)	 	to interpret and construe the Plan, to determine all questions with regard to
employment, eligibility, Benefit or Vesting Service, Compensation, retirement income,
and such factual matters as date of birth and marital status, and similarly related
matters for the purpose of the Plan, such interpretation, construction, or
determination to be conclusive upon all Participants, the Board, the Company, the
Trustee, the Insurer and other interested parties;
	 
	 	(b)	 	to prescribe procedures to be followed by Participants, Beneficiaries and
Contingent Annuitants for filing applications for benefits;
	 
	 	(c)	 	to prepare and distribute to Participants information explaining the Plan;
	 
	 	(d)	 	to appoint or employ individuals to assist in the administration of the Plan
and any other agents it deems advisable, including legal, accounting and actuarial
counsel;
	 
	 	(e)	 	to instruct the Trustee and/or Insurer to make benefit payments pursuant to the
Plan;

45

 

	 	(f)	 	to receive and review the periodic valuation of the Plan made by the Actuary;
	 
	 	(g)	 	to receive and review reports of disbursements from the Fund made by the
Trustee and/or Insurer;
	 
	 	(h)	 	to receive and review the periodic audit of the Plan made by a certified public
accountant.

	10.6	 	Information from Participants. Each Participant shall be required to furnish to the
Benefits Committee, in the form prescribed by it, such personal data, affidavits,
authorization to obtain information, and other information as the Benefits Committee may deem
appropriate for the proper administration of the Plan.

	10.7	 	Records. The Benefits Committee shall keep accurate records and minutes of its
proceedings and actions. It shall prepare, or cause to be prepared, such periodic reports to
the U.S. Labor Department and the Internal Revenue Service as may be required pursuant to
ERISA. The Benefits Committee shall prepare annually a report with respect to its operations
for the preceding year and shall deliver a copy thereof to the Board.

	10.8	 	Authority to Act. The Benefits Committee may authorize one or more of its members,
or any agent, to deliver instructions, directions, notifications, or communications to the
Trustee and/or Insurer, and the Trustee and/or Insurer may conclusively rely on the
information contained therein.

	10.9	 	Compensation and Expenses. Unless authorized by the Board, a member or officer of
the Benefits Committee shall not be compensated for his service, but shall be reimbursed for
reasonable expenses incident to the performance of such service. Any such compensation and
expenses shall be paid by the Trust Fund unless paid by each Participating Company. The
Company shall not be obligated to pay any such compensation and expenses.

	10.10	 	Benefits Committee Indemnity. To the extent allowed by law, the Benefits Committee
and the individual members thereof shall be indemnified by the Company against any and all
liabilities arising by reason of any act or failure to act in good faith

46

 

	 	 	pursuant to the
provisions of the Plan, including expenses reasonably incurred in the defense of any claim
relating thereto.

	10.11	 	Denied Claims.

	 	(a)	 	If any application for payment of a benefit under the Plan shall be denied, in
whole or in part, the Benefits Committee shall:

	 	(i)	 	notify the claimant within a reasonable time of receipt by the
Benefits Committee of the application that there has been a denial setting
forth the specific reasons therefor; and
	 
	 	(ii)	 	afford such claimant a reasonable opportunity for a full and
fair review of the decision denying his claim.
	 
	 	 	 	If such notice of denial is not furnished within 90 days of receipt of the
application, the claim shall be deemed denied on such 90th day.

	 	(b)	 	Notice of such denial shall set forth, in addition to the specific reasons for
the denial, the following:

	 	(i)	 	Reference to pertinent provisions of the Plan on which the
denial is based.
	 
	 	(ii)	 	A description of any additional information necessary for the
claimant to support the claim and explanation of why such information is
necessary.
	 
	 	(iii)	 	An explanation of the Plan’s claim review procedure.
	 
	 	(iv)	 	Advice that such claimant may request the opportunity to review
pertinent Plan documents and submit a statement of issues and comments.

	 	(c)	 	Upon request made by any claimant within 60 days following receipt of a notice
of denial of his claim or the date the application has been deemed denied, the Benefits
Committee shall take appropriate steps to review its decision in light of any further
information or comments submitted by such claimant. The Benefits

47

 

	 	 	 	Committee may hold a
hearing at which the claimant may present the basis of his claim for review and at
which he may be represented by counsel.
	 
	 	(d)	 	The Benefits Committee shall render a decision within 60 days after the
claimant’s request for review (which may be extended to 120 days by the Benefits
Committee if circumstances so require) and shall advise the claimant in writing of its
decision on such review, specifying its reasons and identifying appropriate provisions
of the Plan. If the decision on review is not furnished within such time period, the
claim shall be deemed denied upon the expiration of such time period.

ARTICLE XI

PROVISIONS TO PREVENT DISCRIMINATION

	11.1	 	Prevention of Discrimination. With a view of preventing any discrimination in favor
of highly compensated Employees and notwithstanding anything in the Plan to the contrary, the
use of the assets of the Fund is subject to the limitations specified in this Article XI.

	11.2	 	Limitation in the Event of Termination of the Plan.

	 	(a)	 	The limitation of this Article shall only apply to a Participant if his
anticipated annual retirement benefit exceeds $1,500 and the Participant was among the
25 highest-paid Employees of the Company on (a) the Effective Date or (b) the date of
the most recent amendment which substantially increased benefits (a “Substantive
Amendment Date”). The limitations set forth in this paragraph become applicable if:

	 	(i)	 	the Plan is terminated within ten years after the Effective
Date (or a Substantive Amendment Date, if applicable),
	 
	 	(ii)	 	the benefits of a Participant become payable within such
ten-year period, or
	 
	 	(iii)	 	the benefits of a Participant become payable after such
ten-year period and the full current costs for the ten-year period have not
been funded.

48

 

	 	(b)	 	If subparagraph (ii) above is applicable, the restrictions shall remain in
effect until the later of the expiration of the ten-year period or the date on which
the full current costs have been funded. If subparagraph (iii) above is applicable,
the limitations shall continue to apply until the full current costs have been funded.
If a Participant is subject to the provisions of this Article, the benefit payable to
him or his beneficiary shall not exceed the benefit which can be provided from the
greatest of the following:

	 	(i)	 	those benefits purchasable by the greater of (a) $20,000, or
(b) an amount equal to 20% of the first $50,000 of the Participant’s annual
compensation multiplied by the number of years from the Effective Date of this
Agreement to the earlier of (1) the date of termination of the Plan, or (2) the
date the benefit of the Participant becomes payable or (3) the date of a
failure on the part of the Company to meet the full current costs of the Plan;
or
	 
	 	(ii)	 	if a Participant is a “Substantial Owner” (as defined in
Section 4022(b)(5)(A) of ERISA), the present value of the benefit guaranteed
for “Substantial Owners” under Section 4022 of ERISA, or
	 
	 	(iii)	 	if the Participant is not a “Substantial Owner”, the present
value of the maximum benefit provided in Section 4022(b)(3)(B) of ERISA
determined on the date the Plan terminates or on the date benefits commence,
whichever is earlier and in accordance with regulations of the Pension Benefit
Guaranty Corporation.

	 	(c)	 	These conditions shall not restrict the full payment of any survivor’s benefits
on behalf of a Participant who dies while in the Plan and the full current costs have
been met.
	 
	 	(d)	 	If the benefits of, or with respect to, any Participant shall have been
suspended or limited in accordance with the limitations of this Article because the
full current costs of the Plan shall not then have been met, and if such full current
costs shall

49

 

	 	 	 	thereafter be met, then the full amount of the benefits payable to such
Participant shall be resumed and the parts of such benefits which have been suspended
shall then be paid in full.
	 
	 	(e)	 	Notwithstanding anything in this Article to the contrary, if on the termination
of the Plan within the first ten (10) years after the Effective Date (or Substantive
Amendment Date), the funds under the Plan are more than sufficient to provide Accrued
Benefits as defined in Paragraph 2.1 for Participants and their Beneficiaries including
full benefits for all Participants other than such of the 25 highest-paid Employees as
are still in the service of the Company and also including Accrued Benefits as limited
by this Article for such twenty-five (25 highest-paid Employees) then any excess of
such funds shall be used to provide Accrued Benefits for the 25 highest-paid Employees
in excess of such limitations
of this Article up to the benefits to which such Employees would be entitled under
Paragraph 2.1 without such limitations.

	11.3	 	Repeal. If the provisions of this Article XI are no longer required by the Internal
Revenue Code of 1986 or regulations thereunder, such provisions shall become void without the
necessity of further amendment of the Plan.

	11.4	 	Nondiscrimination Requirements. For Plan Years beginning on and after January 1,
1991, the following restriction on benefits shall apply:

	 	(a)	 	In the event the Plan is terminated, the Accrued Benefit of any highly
compensated employee or former highly compensated employee (as such terms are defined
in Section 414(q) of the Code) shall be limited to a benefit which is nondiscriminatory
under the provisions of Section 401(a)(4) and the regulations promulgated thereunder.
	 
	 	(b)	 	The Participants whose benefits shall be restricted on distribution include the
twenty-five (25) highly compensated employees and former highly compensated employees
with the greatest Company-provided compensation.

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	 	(c)	 	The annual payments to a Participant described in subsection (b) above shall be
restricted to an amount equal to the payments that would be made on behalf of the
Participant under a single life annuity that is the Actuarial Equivalent of the sum of
the Participant’s Accrued Benefit and the Participant’s other benefits under the Plan.
The restrictions in this Section shall not apply, however, if:

	 	(i)	 	After payment to a Participant described in subsection (b)
above of all benefits (including loans in excess of amounts set forth in
Section 72(p)(2)(A) of the Code, any periodic income, any withdrawal values
payable to a living employee, and any death benefits not provided for by
insurance on the employee’s life), the value of Plan assets equals or
exceeds one hundred ten percent (110%) of the value of the current
liabilities of the Plan, as defined in Section 412(l)(7) of the Code;
	 
	 	(ii)	 	The value of the benefits described in (i) above for such
Participant is less than one percent (1%) of the value of the Plan’s current
liabilities; or
	 
	 	(iii)	 	The value of the restricted Participant’s benefits does not
exceed three thousand five hundred dollars ($3,500). Effective April 1, 1998,
for purposes of the preceding sentence “five thousand dollars ($5,000)” shall
be substituted for “three thousand five hundred dollars ($3,500)”.

ARTICLE XII

AMENDMENT OF THE PLAN

	12.1	 	Right to Amend. The Board reserves the right, subject to the limitation hereinafter
provided, to amend the Plan in whole or in part through the action of its Board or delegate.
Each amendment of the Plan shall be in writing, and shall become effective on the date
specified therein.

	12.2	 	Restrictions on Amendment. No amendment of the Plan may be made which shall either:

51

 

	 	(a)	 	deprive any Participant, Beneficiary, Spouse or Contingent Annuitant of any
part of his Accrued Benefit as constituted at the time of such amendment; or
	 
	 	(b)	 	result in the reversion to any Company of any part of the Fund prior to the
satisfaction of all liabilities of the Plan.

ARTICLE XIII

TERMINATION OF THE PLAN

	13.1	 	Events Constituting Termination.

	 	(a)	 	It is expressly declared to be the desire and intention of each Participating
Company to continue the Plan and Fund in existence for an indefinite period of time.
However, circumstances not now anticipated or foreseeable may arise in the future, as a
result of which any Participating Company may deem it to be impracticable or unwise to
continue the Plan established hereunder, and any Participating Company therefore
reserves the right to terminate the Plan insofar as it affects its Employees at any
time. Any Participating Company may terminate its participation in the Plan by action
of its Board of Directors. Such termination shall be evidenced by a written instrument
of termination executed by an officer of the Participating Company pursuant to
authorization by its Board of Directors and shall be delivered to the Board, the
Benefits Committee, the Trustee and/or Insurer and to each other Participating Company.
	 
	 	(b)	 	With respect to any Participating Company which has adopted the Plan, its
adjudication of bankruptcy or insolvency by any court of competent jurisdiction, its
making of a general assignment for the benefit of creditors, its dissolution, merger,
consolidation, other reorganization or discontinuance of business, unless coverage for
its Employees under the Plan is continued by a successor company, or its complete
discontinuance of contributions, shall operate to terminate the Plan with respect to
its Employees.
	 
	 	(c)	 	Subject to applicable requirements of ERISA governing termination of employee
pension benefit plans, the Benefits Committee shall direct the Trustee and/or

52

 

	 	 	 	Insurer to segregate the assets of the appropriate Fund allocable to a terminating Company for
payment of benefits in accordance with the provisions of this Article.

	13.2	 	Partial Termination. Upon a partial termination of the Plan with respect to a group
of Participants, the Benefits Committee shall direct the Actuary to determine the
proportionate interests of the Participants affected by such partial termination. After such
proportionate interests have been determined, the Benefits Committee shall direct the
Trustee and/or Insurer to segregate the assets of the appropriate Fund allocable to such
group of Participants for payment of benefits in accordance with the provisions of this
Article, subject to applicable requirements of ERISA.

	13.3	 	Allocation of Assets. Upon termination or partial termination under Paragraphs 13.1
and 13.2, the Accrued Benefits of Participants affected thereby shall become fully vested and
nonforfeitable. The assets of the Fund shall be allocated by the Benefits Committee (after
payment or provision for expenses) to such Participants in the following manner and order:

	 	(a)	 	There shall first be set aside an amount which will provide for a return of the
Participant’s account balance attributable to voluntary contributions.
	 
	 	(b)	 	There shall next be set aside an amount which will provide retirement income
for Participants, Beneficiaries, Spouses and Contingent Annuitants who were receiving
benefits or who were eligible to receive benefits at least three years prior to
termination of the Plan based on the lowest benefit under Plan provisions in effect
during the five years preceding the date of the Plan’s termination.
	 
	 	(c)	 	There shall next be set aside an amount which will provide all other guaranteed
benefits as provided under ERISA, but determined without regard to Sections 4022(b)(5)
and 4022(b)(6).
	 
	 	(d)	 	There shall next be set aside an amount which will provide all other
nonforfeitable benefits, under the provisions of the Plan at its termination, but which
are not guaranteed under ERISA.

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	 	(e)	 	Finally, there shall be set aside an amount which will provide all other
Accrued Benefits as of the date of Plan termination.
	 
	 	 	 	If the appropriate assets of the Fund by the Trustee and/or Insurer for retirement
income for Participants of the Plan, as of the date the Plan is terminated, are not
sufficient to provide in whole the amounts required within the classes described
above, such assets will be allocated pro rata within the class in which the amounts
first cannot be provided in full. Allocation in any of the above listed categories
is to be adjusted for any allocation already made to the same Participant under a
prior category so as to avoid any duplication of benefits payable under a prior
category.

	13.4	 	Manner of Distribution. Subject to the foregoing provisions of this Article XIII,
any distribution after termination of the Plan may be made, in whole or in part, to the extent
that no discrimination results, in cash, securities or other assets in kind (based on their
fair market value as of the date of distribution), or in nontransferable annuity contracts, as
the Benefits Committee in its sole discretion shall determine. Any amounts remaining in the
Fund after the satisfaction of all liabilities of the Plan shall be returned to the respective
Company.

	13.5	 	Liquidation of Trust Fund. The Fund shall continue in existence after the
termination of the Plan for such period of time as may be required to complete the liquidation
thereof in accordance with the terms of this Article XIII.

	13.6	 	Internal Revenue Service Approval for Distribution. Notwithstanding any provision of
the Plan or the Trust Agreement and/or Insurance Contract to the contrary, no person shall
have any right or claim to any assets of the Fund before the Internal Revenue Service shall
determine that the proposed distribution of assets under this Article does not result in the
discrimination prohibited by Section 401(a) of the Code.

54

 

ARTICLE XIV

MISCELLANEOUS PROVISIONS

	 	 	No Assignment of Benefit. No benefit under the Plan, nor any other interest
hereunder of any Participant, Beneficiary, Spouse or Contingent Annuitant, shall be
assignable, transferable or subject to sale, mortgage, pledge, anticipation, garnishment,
attachment, execution, or levy of any kind, and the Trustee and/or Insurer shall not
recognize any attempt to assign, transfer, sell, mortgage, pledge or anticipate the same,
except as provided under Section 401(a)(13) of the Code .
	 
	14.1	 	No Implied Rights to Employment. Neither this Plan, the payment of contributions by
any Company to the Fund, nor the payment of any benefits pursuant to the Plan shall be
construed to create any obligation upon any Company to continue to make contributions to the
Plan or to give any present or future Employee any right to continued employment.
	 
	14.2	 	Return of Contributions to Participating Companies. The Plan is created for the
exclusive benefit of Participants, their Beneficiaries, Spouses and Contingent Annuitants.
Except as provided in subparagraphs (a) and (b) below, at no time prior to the satisfaction of
all liabilities under the Plan with respect to Participants, their Beneficiaries, Spouses and
Contingent Annuitants shall any contributions to the Plan by any Participating Company or any
assets of the Fund ever revert to or be used by any Participating Company.

	 	(a)	 	In the case of a contribution that is made by a mistake of fact, such Company
may direct the return to it of such contribution within one year after the payment of
the contribution.
	 
	 	(b)	 	Contributions by each Company are conditioned upon qualification of the Plan
under Section 401(a) of the Code and the deductibility of each such contribution under
Section 404 of the Code, and each Company may direct the return to it of any
contribution (to the extent disallowed) within one year after such disallowance.

55

 

	14.3	 	Plan Assets, Merger or Transfer. There shall be no merger or consolidation with, or
transfer of assets or liabilities of the Plan to, any other Plan unless each Participant in
the Plan would, if the Plan terminated after such merger, consolidation, or transfer of assets
or liabilities, receive a benefit immediately thereafter equal to or greater than the benefit
that he would have been entitled to receive immediately before such merger, consolidation or
transfer if the Plan had then terminated.
	 
	14.4	 	Payment of Benefits.

	 	(a)	 	If the present value of monthly payments of retirement income to any person
would amount to less than $3,500, the Benefits Committee shall direct the Trustee
and/or Insurer to pay such person the then present value of such retirement income in
one sum. Effective April 1, 1998, for purposes of the preceding sentence “five
thousand dollars ($5,000)” shall be substituted for “three thousand five hundred
dollars ($3,500)”.
	 
	 	(b)	 	Payment of any benefit for the lifetime of a person shall cease with the last
payment due on or before the date of his death.
	 
	 	(c)	 	If the Benefits Committee determines that a person entitled to receive any
benefit payment is under a legal disability or is incapacitated in any way so as to be
unable to manage his financial affairs, the Benefits Committee may direct the Trustee
and/or Insurer to make payments to his legal representative or to a relative or other
person for his benefit, or to apply the payment for the benefit of such person in such
manner as the Benefits Committee considers advisable. Any payment of a benefit in
accordance with the provisions of this subparagraph (c) shall be a complete discharge
of any liability to make such payment.
	 
	 	(d)	 	If a person to whom benefits must be distributed cannot be located, and
reasonable efforts have been made to locate such person, the benefits shall be
forfeited. If a person whose benefit has been forfeited in accordance with this
section subsequently returns or makes a claim for benefits, the person’s forfeited
benefit shall be reinstated

56

 

	14.5	 	Effectuation of Intent. In the event it should become impossible for the Company or
the Benefits Committee to perform any act required by the Plan, the Company or the Committee
may perform in lieu thereof such other act as it in good faith determines will most nearly
carry out the intent and purpose of the Plan.
	 
	14.6	 	Headings. The headings of Articles and Paragraphs of this Plan are for convenience
of reference only, and in case of any conflict between any such headings and the text of this
Plan, the text shall govern.
	 
	14.7	 	Copy of Plan. An executed copy of the Plan shall be available for inspection by any
Employee or other person entitled to benefits under the Plan at reasonable times at the office
of each Company.
	 
	14.8	 	Governing Law. Except as otherwise required by law, the Plan and all matters arising
thereunder shall be governed by the laws of the Commonwealth of Massachusetts. The provisions
of any Trust Agreement or Insurance Contract entered into pursuant to Paragraph 9.3 may be
governed by the law of a jurisdiction of the United States other than Massachusetts as may be
provided therein.

ARTICLE XV

TOP-HEAVY PROVISIONS

	15.1	 	General Rule. For any Plan Year for which this Plan is a “top-heavy plan” as defined
in Paragraph 15.6 below, any other provisions of this Plan to the contrary notwithstanding,
this Plan shall be subject to the following provisions:

	 	(a)	 	The vesting provisions of Paragraph 15.2.
	 
	 	(b)	 	The minimum benefit provisions of Paragraph 15.3.
	 
	 	(c)	 	The limitation on benefits set by Paragraph 15.4.

	15.2	 	Vesting Provisions. Each Participant who has completed the number of years of
Vesting Service specified in the following table shall have a nonforfeitable right to the

57

 

	 	 	percentage of his Accrued Benefit under this Plan correspondingly specified in the following
table:

	 	 	 	 	 
	 	 	Percentage of	 
	Years of Vesting Service	 	Nonforfeitable Benefit	 
	Less than 2
	 	 	0	%
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	100	%

	15.3	 	Minimum Benefit Provisions. Each Participant who is a non-key employee (as defined
in Paragraph 15.8 below) shall be entitled to an Accrued Benefit attributable to Company
contributions in the form of an annual retirement benefit (as defined in (a) below) that shall
be not less than the applicable percentage (as defined in (b) below) of the Participant’s
average annual earnings (as determined under Section 415 of the Code) for years in the testing
period (as defined in (c) below):

	 	(a)	 	“Annual retirement benefit” means a benefit payable annually in the form of a
single life annuity (with no ancillary benefits) beginning at a Participant’s Normal
Retirement Date.
	 
	 	(b)	 	“Applicable percentage” means the lesser of 2% multiplied by the number of
top-heavy Plan Years of Benefit Service or 20%.
	 
	 	(c)	 	“Testing period” means, with respect to a Participant, the period of
consecutive years (not exceeding five) of Benefit Service during which the Participant
had the greatest aggregate earnings from the Company. The testing period shall not
include any year of Benefit Service that begins after the close of the last Plan Year
in which the Plan was a top-heavy plan.
	 
	 	 	 	Benefits taken into account under this Paragraph 15.3 shall not include any benefits
payable under the Social Security Act or any other Federal or State law.

58

 

	15.4	 	Limitation on Benefits. In the event that the Company also maintains a defined
contribution plan providing contributions on behalf of Participants in this Plan, one of the
two following provisions shall apply:

	 	(a)	 	If for the Plan Year this Plan would not be a “top-heavy plan” (as defined in
Paragraph 15.6) if “90 percent” were substituted for “60 percent,” then the minimum
benefit described in Paragraph 15.3 means the lesser of 3% of average annual earnings
in the testing period multiplied by the Participant’s Years of Benefit Service during
which the Plan is top heavy, up to a maximum of 30%.
	 
	 	(b)	 	If for any Plan Year beginning prior to January 1, 2000, this Plan would
continue to be a “top-heavy plan” (as defined in Paragraph 15.6) if “90 percent” were
substituted for “60 percent,” then the denominator of both the defined contribution
plan fraction and the defined benefit plan fraction shall be calculated as set forth in
Paragraph 5.5 for such Plan Year by substituting “1.0” for 1.25” in each place such
figure appears, except with respect to any individual for whom there are no Company
contributions, forfeitures or voluntary contributions allocated or any accruals for
such individual under the defined benefit plan.

	15.5	 	Coordination with Other Plans. In the event that another defined benefit or defined
contribution plan maintained by the Company or Affiliated Company provides benefits or
contributions on behalf of Participants in this Plan, such other plan shall be treated as a
part of this Plan pursuant to applicable principles (such as Revenue Ruling 81-202 or any
successor ruling) in determining whether this Plan satisfies the requirements of Paragraphs
15.2 and 15.3. Such determination shall be made upon the advice of counsel by the Benefits
Committee.
	 
	15.6	 	Top-Heavy Plan Definition. This Plan shall be a “top-heavy plan” for any Plan Year
if, as of the determination date (as defined in Paragraph 15.6(a) below), the present value of
the Accrued Benefits under the Plan for Participants (including former Participants) who are
“key employees” (as defined in Paragraph 15.7 below) exceeds 60 percent of the present value
of the Accrued Benefits under the Plan for all Participants or if this Plan is required to be
in an aggregation group (as defined in Paragraph 15.6(c)

59

 

	 	 	below) which for such Plan Year is a top-heavy group (as defined in Paragraph 15.6(d)
below).

	 	(a)	 	“Determination date” means for any Plan Year the last day of the immediately
preceding Plan Year, except that for the first Plan Year, the determination date means
the last day of such year.
	 
	 	(b)	 	Present value of Accrued Benefits shall be determined as of the most recent
valuation date that is within the 12-month period ending on the determination date and
as described under the Code.
	 
	 	(c)	 	“Aggregation group” means the group of plans, if any, that includes the group
of plans that are required to be aggregated and, if the Benefits Committee so elects,
the group of plans that are permitted to be aggregated.

	 	(i)	 	The group of plans that are required to be aggregated (the
“required aggregation group”) includes:

	 	(A)	 	each plan of the Company in which a key
employee is a Participant, and
	 
	 	(B)	 	each other plan of the Company which enables a
plan in which a key employee is a Participant to meet the requirements
of either Section 401(a)(4) or Section 410 of the Code.

	 	(ii)	 	The plans that are permitted to be aggregated (the “permissive
aggregation group”) includes any plan that is not part of the required
aggregation group that the Benefits Committee certifies as constituting a plan
within the permissive aggregation group. Such plans may be added to the
permissive aggregation group only if, after the addition, the aggregation group
as a whole continues to meet the requirements of both Section 401(a)(4) and
Section 410 of the Code.

	 	(d)	 	“Top-heavy group” means the aggregation group, if as of the applicable
determination date, the sum of the present value of the accrued benefits for key

60

 

	 	 	 	employees under all defined benefit plans included in the aggregation group plus the
aggregate of the accounts of key employees under all defined contribution plans
included in the aggregation group exceeds 60 percent of the sum of the present value
of the accrued benefits for all employees under all such defined benefit plans plus
the aggregate accounts for all employees under such defined contribution plans. If
the aggregation group that is top-heavy is a required aggregation group, each plan
in the group will be top-heavy. If the aggregation group that is top-heavy is a
permissive aggregation group, only those plans that are part of the required
aggregation group will be treated as top-heavy. If the aggregation group is not a
top-heavy group, no plan within such group will be top-heavy.
	 
	 	(e)	 	Solely for the purpose of determining if the Plan, or any other plan included
in a required aggregation group of which this Plan is a part, is top-heavy (within the
meaning of Section 416(g) of the Code), the accrued benefit of an Employee other than a
key employee (within the meaning of Section 416(i)(1) of the Code) shall be determined
under (i) the method, if any, that uniformly applies for accrual purposes under all
plans maintained by the Affiliated Companies, or (ii) if there is no such method, as if
such benefit accrued not more rapidly than the slowest accrual rate permitted under the
fractional accrual rule of Section 411(b)(1)(C) of the Code.
	 
	 	(f)	 	In determining whether this Plan constitutes a top-heavy plan, the Benefits
Committee (or its agent) shall follow the rules set forth in Section 416 of the Code.
	 
	 	(g)	 	The present values of accrued benefits and the amounts of account balances of
an employee as of the determination date shall be increased by the distributions made
with respect to the employee under the Plan and any plan aggregated with the plan under
section 416(g)(2) of the Code during the 1-year period ending on the determination
date. The preceding sentence shall also apply to distributions under a terminated plan
which, had it not been terminated, would have been aggregated

61

 

	 	 	 	with the Plan under section 416(g)(2)(A)(i) of the Code. In the case of a
distribution made for a reason other than separation from service, death, or
disability, this provision shall be applied by substituting “5-year period” for
“1-year period.” . The accrued benefits and accounts of any individual who has not
performed services for the employer during the 1-year period ending on the
determination date shall not be taken into account.

	15.7	 	Key Employee. Key employee means any employee or former employee (including any
deceased employee) who at any time during the Plan Year that includes the determination date
was an officer of the employer having annual compensation greater than $130,000 (as adjusted
under section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a
5-percent owner of the employer, or a 1-percent owner of the employer having annual
compensation more than $150,000. For this purpose, annual compensation means compensation
within the meaning of section 415(c)(3) of the Code. The determination of who is a key
employee will be made in accordance with section 416(i)(1) of the Code and the applicable
regulations and other guidance of general applicability issued thereunder.
	 
	15.8	 	Non-Key Employee. The term “non-key employee” means any employee (and any
beneficiary of an employee) who is a non-key employee as determined in accordance with Section
416(i)(2) of the Code, excluding in any event, individuals who have not performed services for
the Company or Affiliated Company during the five-year period ending on the date on which a
top-heavy determination is made.
	 
	15.9	 	Present Value of Accrued Benefits. For the purpose of determining the present value
of accrued benefits under this Article XV, the assumptions used to determine an Actuarial
Equivalent benefit shall be used, except the interest assumption shall be an annual rate of
5%.
	 
	15.10	 	Change from Top-Heavy Status. In the event the Plan should become a “top-heavy
plan” for a Plan Year and subsequently revert to a plan which is not top-heavy, (a) and (b)
below shall apply:

62

 

	 	(a)	 	The change from a top-heavy plan to a plan which is not top-heavy shall not
reduce a Participant’s nonforfeitable right to any benefit he has accrued under the
Plan, and any Participant who has completed three or more years of Vesting Service,
whether or not consecutive, at the time the Plan reverts to a plan which is not
top-heavy shall have his nonforfeitable right to benefits under the Plan determined in
accordance with Paragraph 15.2 above.
	 
	 	(b)	 	The change from a “top-heavy plan” to a plan which is not top-heavy shall not
reduce a Participant’s accrued benefit.

ARTICLE XVI

BENEFIT RESTRICTIONS

	16.1	 	In General. Notwithstanding any provisions in the Plan to the contrary, pursuant to
Code section 436, which is hereby incorporated by reference, in the event the Plan’s funding
does not satisfy specified requirements, certain benefit options and accruals that would
otherwise be permitted under the Plan shall not be allowed. The provisions of this Section
apply to Plan Years beginning after December 31, 2007.
	 
	16.2	 	Funding-Based Limitation on Shutdown Benefits and Other Unpredictable Contingent Event
Benefits. Any unpredictable contingent event benefit payable with respect to any event
occurring during any Plan Year may not be provided if the adjusted funding target attainment
percentage for such Plan Year: (A) is less than sixty percent (60%), or (B) would be less than
sixty percent (60%) taking into account such occurrence.
	 
	 	 	The preceding paragraph shall cease to apply with respect to any Plan Year, effective as of
the first day of the Plan Year, upon payment by the Employer of a contribution (in addition
to any minimum required contribution under Code section 430) equal to: (i) in the case of
subsection (A) in the preceding paragraph, the amount of the increase in the funding target
of the Plan (under Code section 430) for the Plan Year attributable to the unpredictable
contingent event benefit, and (ii) in the case of subsection (B) in the preceding paragraph,
the amount sufficient to result in an adjusted funding target attainment percentage of sixty
percent (60%).

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	 	 	For purposes of this Section, the term “unpredictable contingent event benefit” means any
benefit payable solely by reason of a plan shutdown (or similar event, as determined by the
Secretary of the Treasury), or an event other than the attainment of any age, performance of
any service, receipt or derivation of any compensation, or occurrence of death or
disability.
	 
	16.3	 	Limitation on Plan Amendments Increasing Liability for Benefits. No amendment which
has the effect of increasing liabilities of the Plan by reason of increases in benefits,
establishment of new benefits, changing the rate of benefit accrual, or changing the rate at
which benefits become nonforfeitable may take effect during any Plan Year if the adjusted
funding target attainment percentage for such Plan Year is: (A) less than eighty percent
(80%), or (B) would be less than eighty percent (80%) taking into account such amendment.
	 
	 	 	The preceding paragraph shall cease to apply with respect to any Plan Year, effective as of
the first day of the Plan Year (or if later, the effective date of the amendment), upon
payment by the Employer of a contribution (in addition to any minimum required contribution
under Code section 430) equal to: (i) in the case of subsection (A) in the preceding
paragraph, the amount of the increase in the funding target of the Plan (under Code section
430) for the Plan Year attributable to the unpredictable contingent event benefit, and (ii)
in the case of subsection (B) in the preceding paragraph, the amount sufficient to result in
an adjusted funding target attainment percentage of eighty percent (80%).
	 
	 	 	This section 16.3 shall not apply to any amendment which provides for an increase in
benefits under a formula which is not based on a Participant’s compensation, but only if the
rate of such increase is not in excess of the contemporaneous rate of increase in average
wages of Participants covered by the amendment.
	 
	16.4	 	Limitations on Accelerated Benefit Distributions. If the Plan’s adjusted funding
target attainment percentage for a Plan Year is less than sixty percent (60%), then the Plan
may not pay any prohibited payment after the valuation date for the Plan Year.

64

 

	 	 	Additionally, during any period in which the Employer is a debtor in a case under Title 11,
United States Code, or similar federal of state law, the Plan may not pay any prohibited
payment. The preceding sentence shall not apply on or after the date on which the enrolled
actuary of the Plan certifies that the adjusted funding target attainment percentage of the
Plan is not less than one hundred percent (100%).
	 
	 	 	If the Plan’s adjusted funding target attainment percentage for a Plan Year is sixty percent
(60%) or greater but less than eighty percent (80%), then the Plan may not pay any
prohibited payment after the valuation date for the Plan Year to the extent the amount of
the payment exceeds the lesser of: (i) fifty percent (50%0 of the amount of the payment
which could be made without regard to this Section, or (ii) the present value (determined
under the guidance provided by the Pension Benefit Guaranty Corporation, using the interest
and mortality assumptions under Code section 417(e)) of the maximum guarantee with respect
to the Participant under ERISA section 4022. Only one prohibited payment meeting the
requirements of this paragraph may be made with respect to any Participant during any period
of consecutive Plan Years to which the limitations under this section apply.
	 
	 	 	For purposes of this section, a Participant and Beneficiary (including an alternate payee,
as defined in Code section 414(p)(8)) shall be treated as one Participant. If the accrued
benefit of a Participant is allocated to such an alternate payee and one or more other
persons, the amount under the preceding paragraph shall be allocated among such persons in
the same manner as the accrued benefit is allocated unless the qualified domestic relations
order (as defined in Code section 414(p)(1)(A)) provides otherwise. This subsection shall not apply for any Plan Year if the terms of the Plan (as in effect for
the period beginning on January 1, 2006, and ending with such Plan Year) provide for no
benefit accruals with respect to any Participant during such period.
	 
	 	 	For purposes of this Section, the term “prohibited payment” means: (i) any payment, in
excess of the monthly amount paid under a single life annuity (plus any Social Security
supplements described in the last sentence of Code section 411(a)(9)), to a Participant or
Beneficiary whose annuity starting date (as defined in Code section 417(f)(2)) occurs

65

 

	 	 	during any period a limitation under first paragraph of this Section is in effect, (ii) any
payment for the purchase of an irrevocable commitment from an insurer to pay benefits, (iii)
any other payment specified by the Secretary by regulations. Such term shall not include the
payment of a benefit which, under Code section 411(a)(11), may be immediately distributed
without the consent of the Participant.
	 
	16.5	 	Limitations on Benefit Accruals for Plans with Severe Funding Shortfalls. If the
Plans adjusted funding target Benefit Accruals attainment percentage for a Plan Year is less
than sixty percent (60%), benefit accruals under the Plan shall cease as of the valuation date
for the Plan Year.
	 
	 	 	The preceding paragraph shall cease to apply with respect to any Plan Year, effective as of
the first day of the Plan Year, upon payment by the Employer of a contribution (in addition
to any minimum required contribution under Code section 430) equal to the amount sufficient
to result in an adjusted funding target attainment percentage of sixty percent (60%).
	 
	16.6	 	Miscellaneous.The contribution rules, underfunding presumptions, definitions and
transition rules set forth in Code section 436 and related regulations are hereby incorporated
by reference, and the provisions of this Section shall be interpreted and administered in
accordance with the requirements of Code section 436. Absent a Plan amendment, payments and
accruals will not resume effective as of the day following the close of the period for which
any limitation of payment or accrual of benefits under Section 16.4 or 16.5 applies.

66

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I INTRODUCTION
	 	 	1	 
	 
	 	 	 	 
	1.1 Name
	 	 	1	 
	1.2 Background
	 	 	1	 
	1.3 Purpose
	 	 	1	 
	1.4 Pension Plan Frozen Effective October 31, 2006
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	2.1 Accrued Benefit
	 	 	2	 
	2.2 Actuarial Equivalent
	 	 	2	 
	2.3 Actuary
	 	 	3	 
	2.4 Affiliated Company
	 	 	3	 
	2.5 Average Compensation
	 	 	4	 
	2.6 Beneficiary
	 	 	4	 
	2.7 Benefit Service
	 	 	4	 
	2.8 Benefits Committee
	 	 	5	 
	2.9 Board
	 	 	5	 
	2.10 Break In Service
	 	 	5	 
	2.11 Code
	 	 	5	 
	2.12 Company
	 	 	5	 
	2.13 Compensation
	 	 	5	 
	2.14 Contingent Annuitant
	 	 	6	 
	2.15 Contingent Annuitant Option
	 	 	6	 
	2.16 Covered Compensation
	 	 	6	 
	2.17 Early Retirement Date
	 	 	7	 
	2.18 Effective Date
	 	 	7	 
	2.19 Employee
	 	 	7	 
	2.20 Employees’ Personal Account Plan
	 	 	7	 
	2.21 Employees’ Personal Account Plan Benefit
	 	 	8	 
	2.22 ERISA
	 	 	8	 
	2.23 Fund or Trust Fund
	 	 	8	 
	2.24 Hour of Service
	 	 	8	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	2.25 Insurance Contract
	 	 	10	 
	2.26 Insurer
	 	 	10	 
	2.27 Normal Retirement Date
	 	 	10	 
	2.28 Participant
	 	 	10	 
	2.29 Participating Company
	 	 	10	 
	2.30 Plan
	 	 	10	 
	2.31 Plan Year
	 	 	10	 
	2.32 Postponed Retirement Date
	 	 	10	 
	2.33 Social Security Retirement Age
	 	 	10	 
	2.34 Spouse
	 	 	10	 
	2.35 Straight Life Annuity
	 	 	11	 
	2.36 Termination Date
	 	 	11	 
	2.37 Trust Agreement
	 	 	11	 
	2.38 Trustee
	 	 	11	 
	2.39 Valuation Date
	 	 	11	 
	2.40 Vesting Date
	 	 	11	 
	2.41 Vesting Service
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III ELIGIBILITY AND SERVICE
	 	 	11	 
	 
	 	 	 	 
	3.1 Eligibility for Participation
	 	 	11	 
	3.2 Benefit Service
	 	 	12	 
	3.3 Vesting Service
	 	 	13	 
	3.4 Reemployment
	 	 	14	 
	3.5 Transfer of Participants
	 	 	15	 
	3.6 Change in Employee Status
	 	 	16	 
	3.7 Uniformed Services Employment and Reemployment rights Act of 1994
	 	 	17	 
	 
	 	 	 	 
	ARTICLE IV ELIGIBILITY FOR RETIREMENT INCOME
	 	 	17	 
	 
	 	 	 	 
	4.1 Normal Retirement Date
	 	 	17	 
	4.2 Postponed Retirement Date
	 	 	18	 
	4.3 Early Retirement Date
	 	 	18	 
	4.4 Vesting Date
	 	 	18	 
	4.5 LTD Receipt
	 	 	19	 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE V AMOUNT OF RETIREMENT INCOME AND PAYMENTS
	 	 	19	 
	 
	 	 	 	 
	5.1 Basic Retirement Amount
	 	 	19	 
	5.2 Normal Form of Retirement Income
	 	 	20	 
	5.3 Early Retirement Income
	 	 	21	 
	5.4 Deferred Vested Retirement Income
	 	 	22	 
	5.5 Maximum Benefit
	 	 	22	 
	5.6 Minimum Benefit
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VI DEATH BENEFITS
	 	 	27	 
	 
	 	 	 	 
	6.1 Immediate Pre-Retirement Spouse’s Benefit
	 	 	27	 
	6.2 Deferred Pre-Retirement Spouse’s Benefit
	 	 	28	 
	6.3 Applicability to Certain Former Vested Terminated Employees
	 	 	29	 
	6.4 HEART Act Provisions
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VII NORMAL AND OPTIONAL PAYMENT FORMS OF RETIREMENT INCOME
	 	 	30	 
	 
	 	 	 	 
	7.1 Waiver of Normal Form and Election of Optional Form of Payment
	 	 	30	 
	7.2 Waiver Period
	 	 	30	 
	7.3 Temporary Non-Payment of Retirement Income
	 	 	31	 
	7.4 Optional Forms of Payment
	 	 	32	 
	7.5 General Limitation
	 	 	34	 
	7.6 Direct Rollover Provisions
	 	 	36	 
	7.7 Cash Out of Small Benefits
	 	 	38	 
	7.8 Minimum Distribution Requirements
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VIII OPERATION OF THE PLAN
	 	 	40	 
	 
	 	 	 	 
	8.1 Administrator
	 	 	40	 
	8.2 Named Fiduciaries
	 	 	40	 
	8.3 Actions of Fiduciaries
	 	 	41	 
	8.4 Procedures for Plan Operation
	 	 	41	 
	8.5 Funding Policy
	 	 	42	 
	8.6 Assets in Fund
	 	 	42	 
	 
	 	 	 	 

-iii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IX CONTRIBUTIONS AND FUNDING
	 	 	42	 
	 
	9.1 Contributions by the Company
	 	 	42	 
	9.2 Expenses
	 	 	42	 
	9.3 Trust Agreement and/or Insurance Contract
	 	 	43	 
	9.4 Contributions Conditioned on Tax Deductibility
	 	 	43	 
	9.5 Return of Contributions
	 	 	43	 
	 
	 	 	 	 
	ARTICLE X PLAN ADMINISTRATION AND THE BENEFITS COMMITTEE
	 	 	44	 
	 
	 	 	 	 
	10.1 Appointment and Removal of Benefits Committee
	 	 	44	 
	10.2 Officers of Benefits Committee
	 	 	44	 
	10.3 Action by Benefits Committee
	 	 	45	 
	10.4 Rules and Regulations
	 	 	45	 
	10.5 Powers
	 	 	45	 
	10.6 Information from Participants
	 	 	46	 
	10.7 Records
	 	 	46	 
	10.8 Authority to Act
	 	 	46	 
	10.9 Compensation and Expenses
	 	 	46	 
	10.10 Benefits Committee Indemnity
	 	 	46	 
	10.11 Denied Claims
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XI PROVISIONS TO PREVENT DISCRIMINATION
	 	 	48	 
	 
	 	 	 	 
	11.1 Prevention of Discrimination
	 	 	48	 
	11.2 Limitation in the Event of Termination of the Plan
	 	 	48	 
	11.3 Repeal
	 	 	50	 
	11.4 Nondiscrimination Requirements
	 	 	50	 
	 
	 	 	 	 
	ARTICLE XII AMENDMENT OF THE PLAN
	 	 	51	 
	 
	 	 	 	 
	12.1 Right to Amend
	 	 	51	 
	12.2 Restrictions on Amendment
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XIII TERMINATION OF THE PLAN
	 	 	52	 
	 
	 	 	 	 
	13.1 Events Constituting Termination
	 	 	52	 
	13.2 Partial Termination
	 	 	53	 
	13.3 Allocation of Assets
	 	 	53	 
	13.4 Manner of Distribution
	 	 	54	 
	13.5 Liquidation of Trust Fund
	 	 	54	 
	13.6 Internal Revenue Service Approval for Distribution
	 	 	54	 

-iv-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE XIV MISCELLANEOUS PROVISIONS
	 	 	55	 
	 
	 	 	 	 
	NO ASSIGNMENT OF BENEFIT
	 	 	55	 
	 
	 	 	 	 
	14.1 No Implied Rights to Employment
	 	 	55	 
	14.2 Return of Contributions to Participating Companies
	 	 	55	 
	14.3 Plan Assets, Merger or Transfer
	 	 	55	 
	14.4 Payment of Benefits
	 	 	56	 
	14.5 Effectuation of Intent
	 	 	56	 
	14.6 Headings
	 	 	57	 
	14.7 Copy of Plan
	 	 	57	 
	14.8 Governing Law
	 	 	57	 
	 
	 	 	 	 
	ARTICLE XV TOP-HEAVY PROVISIONS
	 	 	57	 
	 
	 	 	 	 
	15.1 General Rule
	 	 	57	 
	15.2 Vesting Provisions
	 	 	57	 
	15.3 Minimum Benefit Provisions
	 	 	58	 
	15.4 Limitation on Benefits
	 	 	58	 
	15.5 Coordination with Other Plans
	 	 	59	 
	15.6 Top-Heavy Plan Definition
	 	 	59	 
	15.7 Key Employee
	 	 	62	 
	15.8 Non-Key Employee
	 	 	62	 
	15.9 Present Value of Accrued Benefits
	 	 	62	 
	15.10 Change from Top-Heavy Status
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XVI BENEFIT RESTRICTIONS
	 	 	63	 
	 
	 	 	 	 
	16.1 In General
	 	 	63	 
	16.2 Funding-Based Limitation on Shutdown Benefits
	 	 	63	 
	16.3 Limitation on Plan Amendments Increasing Liability for Benefits
	 	 	64	 
	16.4 Limitation on Accelerated Benefit Distributions
	 	 	64	 
	16.5 Limitations on Benefit Accruals for Plans with Severe Funding Shortfalls
	 	 	66	 
	16.6 Miscellaneous
	 	 	66	 

-v-exv10w29

Exhibit 10.29

STANDARD INDUSTRIAL LEASE

CENTER NAME:

Parkway Centre One

LANDLORD:

Crest Partners-Poway One Danielson, LLC, a California limited liability company

TENANT:

NEXUS Biosystems, Inc., a Delaware corporation

 

 

STANDARD INDUSTRIAL LEASE

     This STANDARD INDUSTRIAL LEASE (“Lease”), dated for reference purposes only May
31, 2010, is entered into by and between Crest Partners-Poway One Danielson, LLC, a
California limited liability company (“Landlord”), and NEXUS Biosystems, Inc., a Delaware
corporation (“Tenant”).

1. BASIC LEASE TERMS.

     The basic terms of the Lease set forth in this Article 1 shall be read in conjunction with the
other Articles of this Lease, which define and explain the basic
terms.

	 	1.1	 	Address for Notice (see Section 24.19):

	 	Landlord:	 	 11750 Sorrento Valley Road, Suite 209

San Diego, California 92121

Attention: Parkway Centre One Property Management

	 	Tenant:	 	At the Premises

	 	1.2	 	Description of Premises:

	 	Center Name:	 	 Parkway Centre One
	 
	 	Building:	 	 14100 Danielson Street
Poway, CA 92604

	 	Premises:	 	 The “Premises” shall consist of approximately 67,594 rentable square
feet in the western portion of the Building, as more particularly depicted
in Exhibit “A” attached hereto and incorporated herein by this reference.
The Premises will be separated from the eastern portion of the Building by a
demising wall. Landlord shall keep the existing demising wall in the back
area of the Building and shall construct the remaining portion of the
demising wall, at its sole expense, at the location shown in Exhibit “A-1”
attached hereto and incorporated herein by this reference.

	 	 	 	Rentable Square Footage of Premises (see Exhibit “A”): 67,594.

Rentable Square Footage of Building: 126,720.

	 	1.3	 	Commencement Date: August 1, 2010.

       1.4 Lease Term (see Article 3): Beginning on the Commencement Date and continuing for approximately
five (5) years and zero (0) months thereafter, through July 31, 2015 (the “Expiration Date”).

	 	1.5	 	Minimum Monthly Rent: See Section 25 of the Addendum.
	 
	 	1.6	 	Security Deposit: $87,872.20 (see Article 5).
	 
	 	1.7	 	Tenant’s Pro Rata Share: 53.34%.

       1.8 Permitted Use 
(see Article 11): General office, manufacturing and R&D uses, and for no other use,
except as provided in Section 11.1 of this Lease. Tenant’s use of the Premises shall
comply with all applicable laws and
zoning requirements, as required under the terms and conditions of this Lease.

	 	1.9	 	Tenant’s Guarantor (If none, so state): None.

       1.10 Tenant’s
Parking Spaces (Unassigned) (see Section 11.6): Tenant shall be entitled to 3 spaces per
1000 Rentable Square Feet leased on a non-exclusive/non-reserved basis. Tenant’s
employees shall endeavor to park in
the western half of the property when possible.

	 	1.11	 	Landlord’s Broker (If none, so state): Colliers International.
	 
	 	 	 	Tenant’s Broker (If none, so state): Bonnie Kuenstler.

       1.12 Additional Provisions: The following additional provisions are attached to and made a part of this
Lease (if none, so state): Addendum to Standard Industrial Lease.

	 	1.13	 	Exhibits: The following Exhibits are attached to and made a part of this Lease:

	 	 	 	 

	

Exhibit “A”

Exhibit “A-1”

Exhibit “B”

Exhibit “C”

	-
-
-
-	 	Proposed Site/Floor Plan of Premises 

Demising Wall 

Rules and Regulations 

Sign Criteria

2. LEASE OF PREMISES

     Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises
described in Section 1.2, which Premises are indicated on the site/floor plan attached as Exhibit
“A”. The Premises are part of the office or industrial center identified in Section 1.2 (the
“Center”). The approximate Rentable Square Footage identified in Section 1.2 is a measurement of
the leaseable floor area of the Premises, as determined by Landlord and applied on a consistent
basis

1

 

STANDARD INDUSTRIAL LEASE

TABLE OF CONTENTS

	 	 	 	 	 

	1. BASIC LEASE TERMS
	 	 	1	 
	 
	 	 	 	 
	1.1 Address for Notice
	 	 	1	 
	1.2 Description of Premises
	 	 	1	 
	1.3 Commencement Date
	 	 	1	 
	1.4 Lease Term
	 	 	1	 
	1.5 Minimum Monthly Rent
	 	 	1	 
	1.6 Security Deposit
	 	 	1	 
	1.7 Tenant’s Pro Rata Share of Utilities
	 	 	1	 
	1.8 Permitted Use
	 	 	1	 
	1.9 Tenant’s Guarantor
	 	 	1	 
	1.10 Tenant’s Parking Spaces
	 	 	1	 
	1.11 Landlord’s Broker/Tenant’s Broker
	 	 	1	 
	1.12 Additional Provisions
	 	 	1	 
	1.13 Exhibits
	 	 	1	 
	 
	 	 	 	 
	2. LEASE OF PREMISES
	 	 	1	 
	 
	 	 	 	 
	3. LEASE TERM
	 	 	2	 
	 
	 	 	 	 
	3.1 Commencement
	 	 	2	 
	3.2 Delay in Commencement
	 	 	2	 
	3.3 Early Occupancy
	 	 	2	 
	 
	 	 	 	 
	4. RENT
	 	 	2	 
	 
	 	 	 	 
	4.1 Minimum Monthly Rent
	 	 	2	 
	4.2 Lease Year
	 	 	2	 
	4.3 Additional Rent
	 	 	2	 
	4.4 Impounds
	 	 	2	 
	4.5 Payment by EFT or ACH
	 	 	2	 
	 
	 	 	 	 
	5. SECURITY DEPOSIT
	 	 	2	 
	 
	 	 	 	 
	6. COMMON FACILITIES
	 	 	3	 
	 
	 	 	 	 
	7. MAINTENANCE AND REPAIRS
	 	 	3	 
	 
	 	 	 	 
	7.1 Tenant’s Obligations
	 	 	3	 
	7.2 Landlord’s Obligations
	 	 	3	 
	7.3 Performance By Landlord
	 	 	4	 
	 
	 	 	 	 
	8. REAL PROPERTY TAXES
	 	 	4	 
	 
	 	 	 	 
	8.1 Payment of Real Property Taxes
	 	 	4	 
	8.2 Personal Property Taxes
	 	 	4	 
	 
	 	 	 	 
	9. INSURANCE
	 	 	4	 
	 
	 	 	 	 
	9.1 Landlord’s Insurance
	 	 	4	 
	9.2 Tenant’s Insurance
	 	 	4	 
	9.3 Payment of Insurance Costs
	 	 	4	 
	9.4 Waiver of Subrogation
	 	 	4	 
	9.5 Tenant’s Use Not to Increase Premium
	 	 	5	 
	 
	 	 	 	 
	10. UTILITIES
	 	 	5	 
	 
	 	 	 	 
	10.1 Payment of Utilities by Tenant
	 	 	5	 
	10.2 Pro Rata Share of Utilities
	 	 	5	 
	10.3 Janitorial Service to the Premises
	 	 	5	 
	 
	 	 	 	 
	11. USE
	 	 	5	 
	 
	 	 	 	 
	11.1 Permitted Use
	 	 	5	 
	11.2 Compliance with Legal Requirements
	 	 	5	 
	11.3 Waste, Quiet Conduct
	 	 	5	 
	11.4 Rules and Regulations
	 	 	5	 
	11.5 Signs
	 	 	6	 
	11.6 Parking
	 	 	6	 
	11.7 Entry by Landlord
	 	 	6	 
	 
	 	 	 	 
	12. ACCEPTANCE OF PREMISES; NONLIABILITY
OF LANDLORD; DISCLAIMER
	 	 	6	 
	 
	 	 	 	 
	12.1 Acceptance of Premises
	 	 	6	 
	12.2 Landlord’s Exemption From Liability
	 	 	6	 
	12.3 No Warranties or Representations
	 	 	6	 
	12.4 Keys
	 	 	7	 
	 
	 	 	 	 
	13. INDEMNIFICATION
	 	 	7	 
	 
	 	 	 	 
	14. HAZARDOUS MATERIALS
	 	 	7	 
	 
	 	 	 	 
	14.1 Definitions
	 	 	7	 
	14.2 Use of Hazardous Materials
	 	 	7	 
	14.3 Compliance With Laws; Handling
Hazardous Materials
	 	 	8	 
	14.4 Notice; Reporting; Notice Under Health
and Safety Code Section 25359.7
	 	 	8	 
	14.5 Indemnity
	 	 	8	 
	14.6 Entry and Inspection; Cure
	 	 	8	 
	14.7 Termination; Expiration
	 	 	8	 
	14.8 Exit Assessment
	 	 	8	 
	14.9 Event of Default
	 	 	9	 
	 
	 	 	 	 
	16. ALTERATIONS: LIENS
	 	 	9	 
	 
	 	 	 	 
	15.1 Alterations by Tenant
	 	 	9	 
	15.2 Permits & Governmental Requirements
	 	 	9	 
	15.3 Liens
	 	 	9	 
	15.4 Remodel
	 	 	9	 
	 
	 	 	 	 
	16. DAMAGE AND DESTRUCTION
	 	 	9	 
	 
	 	 	 	 
	16.1 Partial Damage
	 	 	9	 
	16.2 Total Destruction
	 	 	9	 
	16.3 Partial Destruction of Center or Building
	 	 	9	 
	16.4 Insurance Deductible
	 	 	9	 
	16.5 Damage Near End of Term
	 	 	9	 
	16.6 Landlord’s Termination Notice; Effective
Date; Relocation
	 	 	10	 
	16.7 Rent Abatement
	 	 	10	 
	16.8 Tenant’s Obligations
	 	 	10	 
	16.9 Waiver of Inconsistent Statutes
	 	 	10	 
	 
	 	 	 	 
	17. CONDEMNATION
	 	 	10	 
	 
	 	 	 	 
	17.1 Effect on Lease
	 	 	10	 
	17.2 Condemnation Award
	 	 	10	 
	17.3 Waiver of Inconsistent Statutes
	 	 	10	 
	 
	 	 	 	 
	18. ASSIGNMENT AND SUBLETTING
	 	 	10	 
	 
	 	 	 	 
	18.1 Landlord’s Consent Required
	 	 	10	 
	18.2 Landlord’s Election
	 	 	10	 
	18.3 Costs; Transfer Fee
	 	 	11	 
	18.4 Assumption; No Release of Tenant
	 	 	11	 
	18.5 No Merger
	 	 	11	 
	18.6 Reasonable Restriction
	 	 	11	 
	 
	 	 	 	 
	19. SUBORDINATION; ATTORNMENT; ESTOPPEL CERTIFICATE
	 	 	11	 
	 
	 	 	 	 
	19.1 Subordination
	 	 	11	 
	19.2 Attornment
	 	 	11	 
	19.3 Estoppel Certificates
	 	 	11	 
	 
	 	 	 	 
	20. SURRENDER OF PREMISES
	 	 	11	 
	 
	 	 	 	 
	20.1 Condition of Premises
	 	 	11	 
	20.2 Removal of Certain Alterations,
Fixtures and Equipment Prohibited
	 	 	11	 
	20.3 Holding Over
	 	 	12	 
	 
	 	 	 	 
	21. DEFAULT BY TENANT
	 	 	12	 
	 
	 	 	 	 
	22. REMEDIES
	 	 	12	 
	 
	 	 	 	 
	22.1 Termination of Lease
	 	 	12	 
	22.2 Continuation of Lease
	 	 	12	 
	22.3 Performance by Landlord
	 	 	13	 
	22.4 Late Charge; Interest on Overdue
Payments
	 	 	13	 
	22.5 Landlord’s Right to Require Advance
Payment of Rent; Cashier’s Checks
	 	 	13	 
	 
	 	 	 	 
	23. DEFAULT BY LANDLORD
	 	 	13	 
	 
	 	 	 	 
	23.1 Notice to Landlord
	 	 	13	 
	23.2 Notice to Mortgagees
	 	 	13	 
	23.3 Limitation on Remedies Against
Landlord
	 	 	13	 
	 
	 	 	 	 
	24. GENERAL PROVISIONS
	 	 	13	 
	24.1 Action or Defense by Tenant
	 	 	13	 
	24.2 Arbitration and Mediation; Waiver
Of Jury Trial
	 	 	14	 
	24.3 Attorneys’ Fees
	 	 	14	 
	24.4 Authority of Tenant
	 	 	14	 
	24.5 Binding Effect; Parties Benefited
	 	 	14	 
	24.6 Brokers
	 	 	14	 
	24.7 Construction
	 	 	14	 
	24.8 Counterparts
	 	 	14	 
	24.9 Covenants and Conditions
	 	 	14	 
	24.10 Entire Agreement
	 	 	14	 
	24.11 Exhibits
	 	 	14	 
	24.12 Financial Statements
	 	 	14	 
	24.13 Force Majeure
	 	 	14	 
	24.14 Governing Law
	 	 	14	 
	24.15 Joint and Several Liability
	 	 	14	 
	24.16 Modification
	 	 	14	 
	24.17 Modification for Lender
	 	 	14	 
	24.18 Nondiscrimination
	 	 	14	 
	24.19 Notice
	 	 	15	 
	24.20 Partial Invalidity
	 	 	15	 
	24.21 Quiet Enjoyment
	 	 	15	 
	24.22 Recording; Non-Disclosure
	 	 	15	 
	24.23 Relationship of the Parties
	 	 	15	 
	24.24 Relocation of Tenant
	 	 	15	 
	24.25 Rights of Redemption Waived
	 	 	15	 
	24.26 Time of the Essence
	 	 	15	 
	24.27 Transfer of Landlord’s Interest
	 	 	15	 
	24.28 Waiver
	 	 	15	 

Exhibit “A” — Site/Floor Plan of Premises/Description of Center

Exhibit “A-1” — Demising Wall

Exhibit “B” — Rules & Regulations

Exhibit “C” — Sign Criteria

Addendum to Standard Industrial Lease

ii

 

throughout the Center. As used herein, the term “Building” means the building of which
the Premises are a part; if the Premises encompass the entire Building, then the terms “Premises”
and “Building” shall have the same meanings.

3. LEASE TERM

     3.1 Commencement. The term of this Lease (the “Lease Term”) shall commence on the Commencement
Date stated in Section 1.3 and shall continue for the period stated in Section 1.4, unless sooner
terminated pursuant to any provision of this Lease. In the event that the Commencement Date does
not fall on the first day of the calendar month, the Lease Term shall be subject to a pro rata
adjustment in accordance with Sections 4.1 and 4.2, below.

     3.2 Delay In Commencement. If Landlord cannot deliver possession of the Premises to Tenant on
the Commencement Date specified in Section 1.3 for any reason, Landlord shall not be subject to any
liability therefor. Such nondelivery shall not affect the validity of this Lease nor the
obligations of Tenant hereunder. However: (a) Tenant shall not be obligated to pay rent until
possession of the Premises is delivered to Tenant, (b) if possession of the Premises is not
delivered to Tenant within thirty (30) days of the Commencement Date, the last day of the Lease
Term shall be extended by the total number of days that possession is so delayed, plus the minimum
number of additional days necessary to make the Expiration Date the last day of a calendar month,
and (c) if Landlord has not delivered possession of the Premises within ninety (90) days after the
Commencement Date, Tenant may elect to terminate this Lease by delivering written notice to
Landlord within ten (10) days thereafter, in which event the parties shall be discharged from all
further obligations hereunder.

     3.3 Early Occupancy. Tenant shall be entitled to use the Premises prior to the Commencement
Date for storage purposes and to set up its machinery and personal property (see Addendum). Such
occupancy by Tenant prior to the Commencement Date shall be subject to all terms and conditions of
this Lease, except as otherwise provided in Section 26.2 of the Addendum. In no event shall
Tenant’s early occupancy advance the Expiration Date.

4. RENT

     4.1 Minimum Monthly Rent. Tenant shall pay minimum monthly rent (“Minimum Monthly Rent”) in
the initial amount stated in Section 1.5. The Minimum Monthly Rent shall be increased as set forth
in Section 1.5 and/or elsewhere in this Lease. Tenant shall pay the Minimum Monthly Rent on or
before the first day of each calendar month, in advance, at the office of Landlord or at such other
place designated by Landlord, without deduction, offset or prior demand. If the Commencement Date
is not the first day of a calendar month, the rent for the partial month at the beginning of the
Lease Term shall be prorated on a per diem basis and shall be due on the first day of such partial
month. Upon execution of this Lease, Tenant shall pay the Security Deposit in its entirety (see
Section 5). On or before the Commencement Date, Tenant shall pay the aggregate of the first month’s
Minimum Monthly Rent and the first month’s Monthly Impound Payment, if any (see Section 4.4).

     4.2 Lease Year. As used in this Lease, the term “Lease Year” means (i) the first period of
twelve (12) full calendar months following the Commencement Date (including, if the Commencement
Date is not the first day of a calendar month, the period between the Commencement Date and the
next first day of the month), (ii) each period of twelve (12) full calendar months thereafter, and
(iii) any remaining period at the end of the Lease Term of less than twelve (12) full calendar
months.

     4.3 Additional Rent. All charges payable by Tenant in addition to Minimum Monthly Rent shall
constitute “Additional Rent.” All Minimum Monthly Rent, Additional Rent, and all other charges and
monetary amounts due Landlord from Tenant under this Lease or otherwise shall constitute “rent.”
Unless this Lease provides otherwise, all Additional Rent shall be paid by Tenant, without
limitation or offset, within fifteen (15) days after Tenant’s receipt of a statement from Landlord.
Additional Rent includes, without limitation, Operating Costs (see Article 6), Maintenance and
Repairs (see Article 7), Real Property Taxes (see Article 8), insurance costs (see Article 9),
Utilities (see Article 10), and reasonable attorneys’ fees and costs (see Section 24.3). Unless
expressly provided to the contrary, if any Minimum Monthly Rent is abated or waived pursuant to
another specific term of this Lease or in any separate agreement, it is understood that such
abatement or waiver shall apply only to the Minimum Monthly Rent, and Tenant shall be obligated to
pay all Additional Rent and other charges (including the applicable impounds thereof) during such
periods of abatement or waiver of Minimum Monthly Rent. Minimum Monthly Rent, Additional Rent, and
all other charges and monetary amounts due Landlord from Tenant hereunder shall constitute “rent.”

     4.4 Impounds. Landlord shall have the right, but not the obligation, to collect and impound,
in advance, any or all Additional Rent based upon Landlord’s reasonable estimate of Tenant’s future
liability for such amounts under this Lease if Tenant has been late in the payment of any
Additional Rent more than one (1) time in any twelve (12) month period. Landlord shall initially
establish the monthly amount of such impound (“Monthly Impound Payments”), based upon its estimate
of one-twelfth of Tenant’s annual liability therefor. Landlord shall have the right at any time to
adjust the amount of the Monthly Impound Payment upon notice to Tenant. The Monthly Impound Payment
shall be due and payable on the first day of each month throughout the Lease Term. Any failure to
pay the Monthly Impound Payment when due shall be considered a failure to pay rent when due under
Section 21 and other relevant provisions of this Lease, and shall entitle Landlord to exercise any
or all of its remedies available for the failure to pay rent. Upon the occurrence of any Event of
Default by Tenant hereunder, Landlord shall have the right to apply all unapplied amounts of
Monthly Impound Payments to Tenant’s default. Within ninety (90) days after the end of each
calendar year, Landlord shall deliver to Tenant an accounting of Tenant’s actual share of
Additional Rent and the estimated amounts previously paid by Tenant. Any overpayment by Tenant
shall be credited against next Monthly Impound Payments due hereunder, or, if the Term has expired,
shall be remitted to Tenant within fifteen (15) days. Tenant shall pay the amount of any
underpayment within fifteen (15) days after receipt of the accounting. Tenant acknowledges that the
Monthly Impound Payments are estimates only and not a representation of the amount of Tenant’s
ultimate liability for Additional Rent. Tenant’s share of Operating Costs, Real Property Taxes, and
insurance charges are currently $0.19 per Rentable Square Foot, per month, which estimate includes
a cap on Real Property Taxes. During the first Lease Year, the Real Property Taxes will be capped
at $.13 per Rentable Square Foot, per month. After the first Lease Year, the Real Property Taxes
shall be subject to a maximum annual increase of five percent (5%). In the event that the Building
sells or there are any new taxes and/or new assessments, such amounts would not be included as part
of the cap. In addition, there shall be no cap on the Real Property Taxes in the event that Tenant
exercises its Option to Extend per Section 29 of the Addendum.

     4.5  Payment by EFT or ACH. If Tenant has been late in the payment of any Minimum Monthly Rent
more than one (1) time in any twelve (12) month period, then at Landlord’s election, and upon at
least thirty (30) days’ notice to Tenant, Landlord may require that all payments of Minimum Monthly
Rent, Additional Rent and other amounts due hereunder be made in immediately available funds or by
wire transfer by electronic fund transfer through the Automated Clearing House network or any
similar system designated by Landlord (“ACH”). Such payments shall be initiated by Tenant or
Landlord, at Landlord’s election, to an account designated from time to time by Landlord at an ACH
member bank for settlement not later than 12:00 o’clock noon, San Diego, California time, on the
dates such sums or payments are respectively due. Any payment received after such time shall be
deemed to have been made after the due date.

5. SECURITY DEPOSIT

     Upon execution of this Lease, Tenant shall deposit with Landlord the amount specified in
Section 1.6 (the “Security Deposit”), to be held by Landlord, without liability for interest, as
security for Tenant’s performance of its obligations under this Lease. Landlord shall not be
required to keep the Security Deposit separate from its other accounts. Landlord may apply all or a
part of the Security Deposit to any unpaid rent (including unpaid Additional Rent or Monthly
Impound Payments) or other monetary payments due from Tenant or to cure any other default of Tenant
hereunder and to compensate Landlord for all damage and expense sustained as a result of such
default. If all or any portion of the Security Deposit is so applied, Tenant shall deposit cash
sufficient to restore the Security Deposit to its original amount within fifteen (15) days after
receipt of Landlord’s written demand. If Tenant fully and faithfully performs each of its
obligations

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under this Lease, the Security Deposit or any balance thereof shall be returned to Tenant
within thirty (30) days of the later of the expiration or earlier termination of this Lease or the
vacation of the Premises by Tenant. At Landlord’s request, Tenant shall accompany Landlord or
Landlord’s representative on a “walk-through” of the Premises prior to Landlord’s return of the
Security Deposit.

6. OPERATING COSTS

     6.1 Payment of Operating Costs by Tenant. Tenant shall pay its pro rata share of Operating
Costs for the Center, as defined herein. Tenant’s pro rata share is set forth in Section 1.7 and
shall be recomputed by Landlord on a monthly or other periodic basis selected by Landlord if the
percentage of Rentable Square Footage of the Center occupied by Tenant changes during the term of
this Lease. Tenant shall pay the amount of such increased pro rata share to Landlord, to the extent
such obligation exceeds any amount thereof impounded under Section 4.5, within fifteen (15) days
after receipt of a statement from Landlord.

     6.2 Pro Rata Share of Operating Costs. Tenant’s pro rata share of Operating Costs shall be the
ratio of the Rentable Square Footage of the Premises (identified in Section 1.2) to the total
Rentable Square Footage of the Center, as determined by Landlord from time to time. Changes in
Rentable Square Footage shall be effective on the first day of the first calendar month following
the change. Tenant’s share of Real Property Taxes, insurance costs and other components of
Additional Rent shall be computed on the same basis as Tenant’s Pro Rata Share of Operating Costs,
unless Landlord determines and Tenant consents, which consent shall not be unreasonably withheld,
that some other basis would be equitable.

     6.3 Operating Costs. “Operating Costs” includes all costs of operating, managing, repairing
and maintaining the Common Facilities, including without limitation: gardening and landscaping; the
cost of public liability and property damage insurance; Real Property Taxes, as defined in Section
8.2 but applicable to the Common Facilities; utilities; line painting and parking lot repairs; roof
repairs; lighting; trash and refuse removal; supplies; equipment; exterior painting; capital
improvements (including without limitation the costs of roof, parking lot and underground utilities
replacements), which expenses shall be amortized by Landlord over the useful life of the item,
provided however that, at Landlord’s discretion, replacement costs of the heating and air
conditioning system shall not be amortized, but shall be passed through to Tenant based upon its
unamortized pro rata share; the costs of altering, improving, renovating, upgrading or retrofitting
any portion of the Common Facilities to comply with all laws, regulations and governmental
requirements applicable to the Center (including without limitation those related to disabled
persons, hazardous materials, lighting upgrades, sprinkler and energy saving retrofits); the costs
of renovating or remodeling from time to time for the benefit of all tenants in the Center;
security service; property management costs and administrative fees not to exceed 4% of the gross
rental income of the Center; bookkeeping services; labor; and the cost of personnel to implement
such services. In lieu of including the entire amount of any such expense in Operating Costs in any
one period, Landlord, at its election, may spread the inclusion of, or may amortize, any such
expenses, or a reasonable reserve for anticipated expenses, in Operating Costs over such multiple
periods as Landlord shall determine. Operating Costs shall not include any of the items set forth
in Section 31 of the Addendum.

     6.4 Common Facilities. “Common Facilities” means all areas, facilities, utilities,
equipment and services provided by Landlord for the common use or benefit of the occupants of the
Center and their employees, agents, customers and other invitees, including without limitation, if
the same exist; building lobbies, common corridors and hallways, restrooms, pedestrian walkways,
driveways and access roads, access facilities for disabled persons (including elevators), truck
serviceways, loading docks, garages, driveways, parking lots, landscaped areas, stairways,
elevators, retaining walls, all areas required to be maintained under the conditions of
governmental approvals for the Center, and other generally understood public or common areas. All
Common Facilities shall at all times be subject to the exclusive control and management of
Landlord. Landlord reserves the right to relocate, alter, improve, or adjust the size and location
of any Common Facilities from time to time without liability to Tenant so long as Tenant retains
reasonable ingress and egress to the Premises and the parking areas. Landlord shall have the right
from time to time to establish, modify and enforce reasonable rules and regulations with respect to
the Common Facilities. Landlord shall have the right to construct, maintain and operate lighting
facilities on the Common Facilities; to police the same; from time to time to change the area,
level, location and arrangement of parking areas and other facilities; to restrict parking by
tenants, their officers, agents and employees to employee parking areas; to close all or any
portion of the Common Facilities to such extent; to close temporarily all or any portion of the
Common Facilities for any reason, including for the purpose of preventing a dedication thereof or
the accrual of any rights to any person or the public therein; and to do and perform such other
acts in and to the Common Facilities which Landlord shall determine, using good business judgment,
to be advisable to improve the convenience and use thereof by tenants, their officers, agents,
employees and customers so long as Tenant retains reasonable ingress and egress to the Premises and
the parking areas. Subject to the foregoing, all Common Facilities not within the Premises, which
Tenant may use under a revocable license, on a nonexclusive basis in common with other tenants, and
if any such license is revoked, or if the amount of such areas is diminished, Landlord shall not be
subject to any liability and Tenant shall not be entitled to any compensation or abatement of rent,
nor shall such revocation or diminution be deemed constructive or actual eviction.

7. MAINTENANCE AND REPAIRS.

     7.1 Tenant’s Obligations. Except as provided in Section 7.2, Tenant shall keep the Premises in
good order, condition and repair during the Lease Term, including without limitation: all
nonstructural, interior, exterior, and landscaped areas; all heating, ventilation and air
conditioning systems and equipment; all glass, glazing, windows, window moldings, partitions, doors
and door hardware; all interior painting; all fixtures and appurtenances in the Premises or
exclusively serving the Premises including electrical, lighting and plumbing fixtures; and all
other portions of the Premises seen or unseen. Tenant shall promptly replace at its sole cost and
expense any of the systems, equipment and other portions of the Premises for which it is
responsible hereunder during the Lease Term if and when necessary, regardless of whether the
benefit of such replacement extends beyond the Lease Term. It is the intention of Landlord and
Tenant that Tenant shall maintain the Premises, at all times during the Lease Term, in an
attractive, first-class and fully operative condition, at Tenant’s expense. If any heating and air
conditioning system or equipment exclusively serves the Premises, Tenant shall additionally obtain
and keep in force a preventive maintenance contract providing for the regular (at least quarterly)
inspection and maintenance of the heating and air conditioning system (including leaks around
ducts, pipes, vents, and other parts of the air conditioning) by a reputable licensed heating and
air conditioning contractor acceptable to Landlord. Prior to April 1 of each calendar year, Tenant
shall deliver Landlord written confirmation from such contractor verifying that such a contract has
been entered into and that the required service will be provided. Notwithstanding the foregoing,
Landlord shall have the right, upon written notice to Tenant, to undertake the responsibility for
preventive maintenance and repair of the heating and air conditioning system, at Tenant’s sole cost
and expense.

     7.2 Landlord’s Obligations. Landlord shall repair and maintain the Common Facilities, and the
roof, the foundations and structural portions of the Premises and any building of which the
Premises are a part. Provided, however, that Tenant shall pay the (a) the full amount of any
maintenance and repairs necessitated by any act, omission, conductor activity of, or breach of this
lease by, Tenant or any of Tenant’s officers, agents, customers or invitees (plus ten percent (10%)
of the cost thereof for Landlord’s overhead); and (b) any maintenance and repairs necessitated by
breaking and entering of the Premises. Tenant shall pay its share of such maintenance and repair
costs incurred by Landlord, to the extent such obligation exceeds any amount thereof impounded
under Section 4.4, within fifteen (15) days after receipt of a statement from Landlord. There shall
be no abatement of rent, and no liability of Landlord, by reason of any injury to or interference
with Tenant’s business arising from the making of any repairs, alterations, or improvements to any
portion of the Premises or the Center so long as Landlord has taken reasonable steps to minimize
the interference with Tenant’s business. Except as provided in Article 16 (Damage and Destruction)
and Article 17 (Condemnation), Landlord shall have

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absolutely no other responsibility to repair, maintain or replace any portion of the Premises
at any time. Tenant waives the right to make repairs at Landlord’s expense under California Civil
Code Section 1942, or under any other law, statute or ordinance now or hereafter In effect.
Landlord’s obligations under this Section are not intended to alter or modify in any way the
provisions of Article 12.

     7.3 Performance By Landlord. If Tenant refuses or neglects to perform its maintenance
obligations hereunder to the reasonable satisfaction of Landlord, Landlord shall have the right
(but not the obligation), upon three (3) days’ prior written notice to Tenant, to enter the
Premises and perform such repairs and maintenance on behalf of Tenant. Landlord shall also have the
right (but not the obligation), without prior notice to Tenant, to correct or remove any dangerous
or hazardous condition, to repair the heating, ventilation, air conditioning or plumbing systems,
to correct, repair or bring into legal compliance any fire or other life safety systems of the
Premises, and to repair or replace any broken glass or glazing, if Tenant fails to correct or
repair the same within twenty-four (24) hours after the need arises. Landlord shall not be liable
to Tenant for any loss or damage to Tenant’s merchandise, fixtures, or other property or to
Tenant’s business in connection with Landlord’s performance hereunder, and Tenant shall pay
Landlord’s costs plus ten percent (10%) of such amount for overhead, upon presentation of a
statement therefor, as Additional Rent. Tenant shall also pay interest at the rate provided in
Section 22.4 from the date of completion of repairs by Landlord to the date paid by Tenant.

8. REAL PROPERTY TAXES

     8.1 Payment of Real Property Taxes by Tenant. Tenant shall pay ail Real Property Taxes
applicable to the Premises during the Lease Term. If the Premises are not separately assessed, a
share of the tax bill that includes the Premises shall be allocated to the Tenant, Such share shall
be equitably determined by Landlord based upon the Rentable Square Footage of the Premises compared
to the total Rentable Square Footage covered by the tax bill, the respective valuations assigned in
the assessor’s worksheet, or other reasonably available information. Tenant shall pay its share of
Real Property Taxes to Landlord, to the extent such obligation exceeds any amount thereof impounded
under Section 4.5, within fifteen (15) days after receipt of a statement from Landlord.

     8.2 Real Property Taxes Defined. “Real Property Taxes” means all taxes, assessments, levies,
fees and other governmental charges levied on or attributable to the Premises or any part thereof,
including without limitation: (a) real property taxes and assessments levied with respect to all or
a portion of the Premises, (b) assessments, charges and fees charged by governmental agencies or
districts for services or facilities provided to the Premises, (c) transfer, transaction, rental,
gross receipts, license or similar taxes or charges measured by rent received by Landlord,
excluding any federal or state income, franchise, estate or inheritance taxes of Landlord, (d)
taxes based upon a reassessment of the Premises due to a transfer or change of ownership, and (e)
any assessment, charge or fee that is a substitute in whole or in part for any tax now or
previously included within the definition of Real Property Taxes. If Landlord elects to contest an
assessment of any Real Property Taxes, Landlord shall have the right to recover its actual costs of
such contest (including attorneys’ fees and costs) as part of Real Property Taxes, but only to the
extent such contest has resulted in a reduction of Real Property Taxes. Tenant shall not be
entitled to the benefit of any reduction, refund, rebate or credit accruing or payable to Landlord
for any period prior to the commencement of or after the expiration or other termination of the
Lease Term.

     8.3 Personal Property Taxes. Tenant shall pay prior to delinquency all taxes charged against
trade fixtures, furnishings, equipment or any other personal property belonging to Tenant. Tenant
shall attempt to have such personal property taxed separately from the Premises. If any such taxes
on Tenant’s personal property are levied against Landlord or the Premises, or if the assessed value
of the Premises is increased by inclusion of a value placed upon such personal property of Tenant,
then: (a) Landlord, after written notice to Tenant, shall have the right to pay the taxes levied
against Landlord, or the taxes based upon such increased valuation, but under protest if so
requested by Tenant in writing, and (b) Tenant shall pay to Landlord the taxes levied against
Landlord, or the taxes resulting from such increased valuation, within fifteen (15) days after
Tenant’s receipt of a written statement from Landlord.

9. INSURANCE

     9.1 All Risk Coverage. During the Lease Term, Landlord shall maintain insurance covering loss
or damage to the Premises (excluding Tenant’s Alterations, fixtures, equipment and personal
property), insuring against any or all risks of physical loss
(and including, at Landlord’s option, flood and earthquake coverage), at full replacement
cost. Said insurance shall provide for payment of loss thereunder to Landlord or to the holder of a
first mortgage or deed of trust on the Premises. Landlord may also maintain during the Lease Term a
policy of rental income insurance covering a period of one (1) year, with loss payable to Landlord.

     9.2 Tenant’s Personal Property and Fixtures. Tenant shall at all times, at Tenant’s sole cost
and expense, maintain insurance against any or all risks of physical loss in an amount adequate to
cover the cost of replacement of all of Tenant’s Alterations, trade fixtures, equipment and
personal property. Such policy shall be issued by an insurance company approved by Landlord, shall
name Landlord and Landlord’s lender as additional insureds, and Tenant shall provide to Landlord
and Landlord’s lender written notice of cancellation or reduction in coverage immediately after
Tenant receives written notice from Tenant’s insurance carrier. Tenant shall deliver a certificate
evidencing such insurance to Landlord and a renewal or binder at least twenty (20) days prior to
expiration. Tenant acknowledges that Landlord’s insurance is not intended to cover Tenant’s
Alterations, trade fixtures, equipment, and personal property. Provided, however, that at
Landlord’s sole election, Landlord may obtain at Tenant’s expense any or all of the insurance
described in this Section.

     9.3 Tenant’s Liability Insurance. Tenant shall, at Tenant’s sole cost and expense, provide
comprehensive general liability insurance, fully covering and indemnifying Landlord and Landlord’s
officers, directors, shareholders, partners, principals, employees, agents, representatives, and
other related entities and individuals (together with, at Landlord’s election, Landlord’s lender),
as additional Insureds, against any and all claims (subject to customary policy exclusions) arising
from personal injury, death, and/or property damage occurring in or about the Premises or the
Center during the period of Tenant’s possession (actual and/or constructive) at the Premises. The
initial limits of such insurance shall be at least $2,000,000 combined single liability limit if
the Rentable Square Footage of the Premises (as indicated in Section 1.2) exceeds 3,000 square
feet, or $1,000,000 combined single liability limit if such Rentable Square Footage is 3,000 square
feet or less. Such liability insurance limits shall be subject to periodic increase, at Landlord’s
election and at Landlord’s reasonable discretion, based upon inflation, increased liability awards,
lender requirements, the recommendations of Landlord’s professional insurance advisors, and other
relevant factors. Tenant shall also, at its sole cost and expense, obtain workers’ compensation
insurance for the protection of its employees such as will relieve Landlord of all liability to
such employees for any and all accidents that may arise on or about the Premises or the Center. All
insurance required to be carried by Tenant shall be primary and noncontributory to any insurance
carried by Landlord, regardless of the absence of negligence or other fault of Tenant for alleged
injury, death and/or property damage. Each policy of insurance required to be carried by Tenant
hereunder shall: (a) contain cross-liability and contractual liability endorsements, (b) be issued
by an insurer licensed in California and reasonably approved by Landlord, and (c) shall insure
Tenant’s performance of the indemnity provisions of Article 13 subject to policy limitations, but
the amount of such insurance shall not limit Tenant’s liability nor relieve Tenant of any
obligation hereunder. Tenant shall be required to provide Landlord thirty (30) days prior written
notice of any cancellation or reduction in coverage. Prior to the Commencement Date, Tenant shall
deliver a certificate evidencing all such insurance to Landlord. Tenant shall deliver a renewal or
binder of such policy at least thirty (30) days prior to expiration thereof. Tenant shall, at
Tenant’s expense, maintain such other liability insurance as Tenant deems necessary to protect
Tenant. Tenant shall be in material breach of this Lease if Tenant fails to obtain the insurance
required under this Section, or if Tenant obtains insurance with terms, conditions and/or
exclusions that are inconsistent with the requirements and terms of this Lease.

     9.4 Payment of Insurance Costs. Tenant shall pay directly all premiums for its liability
insurance required under Section 9.3, for its personal property insurance to be carried by Tenant
as required under this Article, and for all other insurance Tenant elects to carry. Tenant shall
pay the insurance premiums, or where applicable its share thereof as

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equitably determined by Landlord, for the insurance policies carried or obtained by Landlord as
described in this Article excluding rental income insurance. If the Lease Term expires before the
expiration of any such insurance policy, Tenant’s liability for premiums shall be prorated on an
annual basis. Tenant shall pay such insurance costs to Landlord, to the extent such obligation
exceeds any amount thereof impounded under Section 4.5, within fifteen (15) days after receipt of a
statement from Landlord. If any insurance policy maintained by Landlord covers improvements or real
property other than the Premises, Landlord shall reasonably determine the portion of the premiums
applicable to the Premises, and Tenant shall pay its share thereof as so determined. In addition,
Tenant shall pay the full amount of any deductible amount under Landlord’s insurance policies, or
where applicable its share thereof as equitably determined by Landlord, within fifteen (15) days
after receipt of a statement from Landlord.

     9.5 Waiver of Subrogation. Each party waives all rights of recovery against the other party,
and its officers, employees, agents and representatives for any claims for loss or damage to person
or property caused by or resulting from fire or any other risks insured against under any insurance
policy in force at the time of such loss or damage. Each party shall cause each insurance policy
obtained by it to provide that the insurer waives all rights of recovery by way of subrogation
against the other party in connection with any damage covered by such policy.

     9.6 Tenant’s Use Not to Increase Premium. Tenant shall not keep, use, manufacture, assemble,
sell or offer for sale in or upon the Premises any article that may be prohibited by, or that might
invalidate, in whole or in part, the coverage afforded by, a standard form of fire or all risk
insurance policy. Tenant shall pay the entire amount of any increase in premiums that may be
charged during the Lease Term for the insurance that may be maintained by Landlord on the Premises
or the Center resulting from the type of materials or products stored, manufactured, assembled or
sold by Tenant in the Premises, whether or not Landlord has consented to the same. In determining
whether increased premiums are the result of Tenant’s use of the Premises, a schedule issued by the
entity making the insurance rate on the Premises showing the various components of such rate shall
be conclusive evidence of the items and charges that make up the fire insurance rate on the
Premises.

     9.7 Boiler and Machinery Coverage. At Landlord’s option, Landlord may maintain, at Tenant’s
expense, boiler broad form insurance, if applicable, in the amount of One Hundred Fifty Thousand
Dollars ($150,000) in the name of Landlord. Tenant shall pay the premium therefore, or its share
thereof equitably determined by Landlord if the Premises are a part of a multi-tenant building.

10. UTILITIES.

     10.1 Tenant shall
pay the cost of all water, gas, heat, light, power, sewer, telephone, refuse
disposal, and all other utilities and services supplied to the Premises. Tenant shall make payments
for all separately metered utilities, when due, directly to the appropriate supplier. Landlord
shall have the right to require Tenant to install, at Tenant’s sole expense, separate meters (or
other submeter, device or monitor for the measurement of utility usage) for any utility for which a
separate meter is not installed as of the Commencement Date. If any utilities or services are not
separately metered or monitored with respect to the Premises, Landlord shall determine Tenant’s
equitable share thereof, based on rentable square footage, intensity of use of any Utility, hours
of operation, and such other factors as Landlord deems relevant. Tenant shall pay its equitable
share of such utilities to Landlord, to the extent such obligation exceeds any amount thereof
impounded under Section 4.5, within fifteen (15) days after receipt of a statement from Landlord.
If at any time during the Lease Term, electrical power or any other utility is available to the
Premises from multiple sources, Landlord shall have the right at any time and from time to time to
contract for service from any company or companies providing electrical, telecommunication, or
other utility service to the Building. Tenant shall cooperate with Landlord and all providers of
electrical, telecommunication, or other utility service and, as reasonably necessary, allow
Landlord and such providers reasonable access to the Premises and to the electric lines, feeders,
risers, wiring and any other machinery or equipment within the Premises. Landlord shall in no way
be liable or responsible for any loss, damage or expense that Tenant may sustain or incur by reason
of any change, failure, interruption, interference or defect in the supply or character of the
electricity or other utilities supplied to the Premises. Landlord makes no representation or
warranty as the suitability of the utility service for Tenant’s requirements, and no such change,
failure, defect, unavailability or unsuitability shall constitute any actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution of rent, or relieve
Tenant of any of its obligations under the Lease. Landlord shall not be
liable in damages or otherwise for any failure or interruption of any utility service, and no
such failure or interruption shall entitle Tenant to terminate this Lease or abate the rent due
hereunder.

     10.2 Janitorial Service to the Premises. Tenant shall be responsible for obtaining its own
janitorial service for the Premises. Tenant shall make payments for any janitorial services, when
due, directly to the service provider.

11. USE

     11.1 Permitted Use. The Premises shall be used and occupied only for the permitted uses
specified in Section 1.8, and shall not be used or occupied for any other purposes without the
prior written consent of Landlord. Should Tenant desire to change its use, Tenant shall request
Landlord’s consent to such change in writing, and shall provide in writing such reasonably detailed
information about the proposed new use as may be requested by Landlord. Landlord shall not
unreasonably withhold its consent to any requested change of use, and shall have the right to
impose reasonable restrictions on such new use. Factors that Landlord may take into account in
granting or withholding its consent shall include, without limitation: (i) whether the proposed use
is compatible with the character and tenant mix of the Center, (ii) whether the proposed use poses
any increased risk to Landlord or any other occupant of the Center, (iii) whether any proposed
Alterations to accommodate such proposed use might decrease the rental or sale value of the
Premises or the Center, (iv) whether Tenant has the requisite expertise and financial ability to
successfully operate in the Premises with the proposed new use, and (v) all applicable laws,
ordinances, rules, regulations, orders, requirements, covenants and restrictions applicable to the
Center or any portion thereof.

     11.2 Compliance with Legal Requirements. Tenant shall at all times and at its sole expense
comply with all federal, state, local and other laws, ordinances, rules, regulations, orders,
requirements, and recorded covenants and restrictions applicable to the Center, whether now in
force or hereafter in effect (including without limitation those related to disabled persons,
access (Tenant will not be responsible for any remediation required by the Americans with
Disabilities Act of 1990 (the “ADA”) in the Common Areas, except for its pro rata portion, in
accordance with Section 6.3), hazardous materials, lighting upgrades, energy saving, and sprinkler
and seismic retrofits, and those required because of Tenant’s occupancy or the conduct of Tenant’s
business) (collectively, “Legal Requirements”). Tenant shall not do or permit anything to be done
in or about the Premises in conflict with any Legal Requirement. Without limiting the generality of
the foregoing, Tenant shall at its sole cost take all actions, make all alterations, install all
additional facilities, and perform all work required to cause the Premises (and any and all other
areas of the Center under the control of Tenant or that Tenant is required to maintain) to comply
with all Legal Requirements. Notwithstanding the foregoing, Landlord shall be responsible for
compliance with the ADA, and any amendments thereto, relating to Landlord’s construction of the
demising wall and installation of any utility meters, as described in Section 27 of the Addendum.
In addition, in the event that (1) Tenant’s construction of its initial improvements (addressed in
Section 28 of the Addendum) requires that any existing part of the Premises be modified to meet ADA
building regulations enforced by the City of Poway and (2) such modification is required for
Tenant’s building permit to issue, then Landlord shall be responsible for completing the ADA work,
at its sole cost and expense. Landlord has no knowledge of any ADA non-compliance issues with
respect to the Building.

     11.3 Waste, Quiet Conduct. Tenant shall not use or permit the use of the Premises in any
manner that tends to create waste or a nuisance that will cause objectionable noise or odors, or
that may disturb the quiet enjoyment of any other tenant in the Center.

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     11.4 Rules and Regulations. Tenant shall comply with the Rules and Regulations for the Center
attached as Exhibit “B”, as the same may be amended by Landlord from time to time, upon notice to
Tenant.

     11.5 Signs. Tenant agrees, at Tenant’s sole cost, to install a sign in strict conformance with
Landlord’s sign criteria and all applicable laws, attached hereto as Exhibit “C”, within fifteen
(15) days after first occupying the Premises. Tenant shall maintain all approved signs and other
items described herein in good condition and repair at all times. All signs must be fabricated by a
contractor approved by Landlord. Prior to construction of any such sign, a detailed drawing of the
proposed sign shall be prepared by the approved contractor, at the sole expense of Tenant, and
submitted to Landlord and Tenant for written approval. No sign, placard, pennant, flag, awning,
canopy, or advertising matter of any kind shall be placed or maintained on any exterior door, wall
or window of the Premises or in any area outside the Premises, and no decoration, lettering or
advertising matter shall be placed or maintained on the glass of any window or door, or that can be
seen through the glass, of the Premises without first obtaining Landlord’s written approval. All
signs and sign cases shall be considered fixtures and improvements and shall become the property of
Landlord upon expiration or termination of the Lease. If Tenant fails to comply with this Section
and Landlord serves upon Tenant a Notice to Perform Covenant or Quit (or similar notice), any
breach of the covenants of this Section occurring thereafter shall be deemed to be noncurable.
Landlord shall have the right from time to time to revise the sign criteria, but only to comply
with laws, ordinances, regulations, or covenants, conditions and restrictions applicable to the
Center and within sixty (60) days after Tenant’s receipt of written notice of any new sign
criteria. Tenant shall, at Tenant’s expense, remove all existing exterior signs and replace the
same with new signs conforming to the new sign criteria. Subject to Landlord’s approval, which will
not be unreasonably withheld. Tenant shall have the right to install corporate identification
signage on the western side of the Building fascia. Such signage shall comply with the terms and
conditions of this Section and all applicable laws, including, without limitation, the City of
Poway codes and regulations.

     11.6 Parking. Tenant shall have the nonexclusive right, in common with others, to use the
parking areas of the Center free of charge; provided, however, that Tenant shall not use more than
the number of parking spaces designated in Section 1.10, or if no number of such spaces is so
indicated, Tenant shall not use more than its reasonable share of parking spaces, as Landlord shall
determine. Landlord reserves the right, without liability to Tenant, to modify the parking areas,
to designate the specific location of the parking for Tenant and Tenant’s customers and employees,
and to adopt reasonable rules and regulations for use of the parking areas. Tenant employees shall
generally park on the west side of the Building.

     11.7 Entry by Landlord. Tenant shall permit Landlord and Landlord’s agents (which includes,
without limitation, Landlord’s real estate broker) to enter the Premises at all reasonable times
for any of the following purposes: (a) to inspect the Premises, (b) to supply any services or to
perform any maintenance obligations of Landlord, including the erection and maintenance of such
scaffolding, canopies, fences, and props as may be required, (c) to make such improvements,
replacements or additions to the Premises or the Center as Landlord deems necessary or desirable,
(d) to post notices of nonresponsibility, (e) to place any usual or ordinary “for sale” signs, (f)
to market, advertise, or show the Building to prospective tenants or purchasers, or (g) within six
(6) months prior to the expiration of this Lease, to place any usual or ordinary “for lease” signs.
No such entry shall result in any rebate of rent or any liability to Tenant for any loss of
occupation or quiet enjoyment of the Premises. Landlord shall give reasonable notice to Tenant
prior to any entry except in an emergency or unless Tenant consents at the time of entry. If Tenant
is not personally present to open and permit an entry into the Premises, at any time when for any
reason an entry therein shall be necessary or permissible. Landlord or Landlord’s agents may enter
the same by a master key, or may forcibly enter the same without rendering Landlord or such agents
liable therefor, and without in any manner affecting the obligations and covenants of this Lease.
Landlord shall use reasonable efforts to avoid entry into Tenant’s “clean room” without prior
permission from Tenant. Nothing herein contained, however, shall be deemed or construed to impose
upon Landlord any obligation, responsibility or liability whatsoever for the care, maintenance or
repair of the Premises or any part thereof, except as otherwise specifically provided herein.

12. ACCEPTANCE OF PREMISES; NONLIABILITY OF LANDLORD; DISCLAIMER.

     12.1 Acceptance of Premises. By taking possession hereunder, Tenant acknowledges that it has
examined the Premises and accepts the Premises in its current, “as-is” condition. Landlord makes no
representations or warranties regarding the condition or state of the Premises upon Tenant taking
possession of the space. By taking possession of the Premises, Tenant shall be deemed to have fully
accepted the state and condition of the Premises in accordance with this Section. Tenant
acknowledges and agrees that there are no agreements, representations, understandings or
obligations on the part of Landlord to perform any alterations, repairs, or improvements. Landlord
has no obligation to improve the Premises other than as set forth specifically in this Lease, if at
all. In particular, Tenant acknowledges that any additional improvements or Alterations needed to
accommodate Tenant’s intended use shall be made solely at Tenant’s sole cost and expense, and
strictly in accordance with the requirements of this Lease (including the requirement to obtain
Landlord’s consent thereto), unless such improvements and alterations are specifically required of
Landlord. Landlord shall have no responsibility to do any work required under any building codes or
other governmental requirements not in effect or applicable at the time the Premises were
constructed, including without limitation any requirements related to sprinkler retrofitting,
seismic structural requirements, accommodation of disabled persons, or hazardous materials.
Landlord shall be under no obligation to provide utility, telephone or other service or access
beyond that which exists at the Premises as of the date of this Lease, unless Landlord specifically
agrees in writing to provide the same. If it is anticipated that Tenant will be doing any
Alterations or installations prior to taking occupancy, any delays encountered by Tenant in
accomplishing such work or obtaining any required permits therefore shall not delay the
Commencement Date or the date that Tenant becomes liable to pay rent, or the date that Landlord may
effectively deliver possession of the Premises to Tenant. By taking possession hereunder, Tenant
acknowledges that it accepts the square footage of the Premises as delivered and as stated in this
Lease, No discovery or alleged discovery after such acceptance of any variance in such square
footage as set forth in this Lease (or in any proposal, advertisement or other description thereof)
shall be grounds for any adjustment in any element of the rent payable hereunder, unless such
adjustment is initiated by and implemented by Landlord in writing.

     12.2 Landlord’s Exemption From Liability. Landlord shall not be liable for injury to Tenant’s
business or loss of income therefrom, or for personal injury or property damage that may be
sustained by Tenant or any subtenant of Tenant, or their respective employees, invitees, customers,
agents or contractors or any other person in or about the Premises, caused by or resulting from
fire, flood, earthquake or other natural disaster, or from steam, electricity, gas, water or rain,
that may leak or flow from or into any part of the Premises, or from the breakage, leakage,
obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air-conditioning,
lighting fixtures or computer equipment or software, whether such damage or injury results from
conditions arising upon the Premises or upon other portions of the building of which the Premises
are a part, or from other sources, and regardless of whether the cause of such damage or injury or
the means of repairing the same is inaccessible to Tenant. Landlord shall not be liable for any
damages to property or for personal injury or loss of life arising from any use, act or failure to
act of any third parties (including other occupants of the Center) occurring in, or about the
Premises or in or about the Center (including without limitation the criminal acts of any third
parties). Landlord shall not be liable for any latent defect in the Premises or in the building of
which the Premises are a part except as provided herein. All property of Tenant kept or stored on
the Premises shall be so kept or stored at the risk of Tenant only, and Tenant shall indemnify,
defend and hold Landlord and Landlord’s officers, directors, shareholders, partners, principals,
employees and agents, and their respective successors and assigns, harmless from and against any
claims arising out of damage to the same, including subrogation claims by Tenant’s insurance
carriers. Provided, however, that the indemnifications and waivers of Tenant set forth in this
Section shall not apply to damage and liability caused (i) by the gross negligence or willful
misconduct of Landlord, and (ii) through no fault of Tenant, its assignees or subtenants, or their
respective agents, contractors, employees, customers, invitees or licensees. In the event that
there are any latent defects in the plumbing and for electrical systems. Tenant shall be required
to pay up to a maximum of Seven Thousand Five Hundred Dollars ($7,500.00) per incident. If there
are multiple incidents and the incidents are unrelated (caused by different latent

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defects in the electrical and/or plumbing systems), then Tenant shall be required to pay a separate
cap of Seven Thousand Five Hundred Dollars ($7,500.00) for each incident. If there are multiple
incidents and the incidents are related or are reoccurring episodes of the same incident (caused by
the same latent defect in the electrical and/or plumbing system), then the cap of Seven Thousand
Five Hundred Dollars ($7,500.00) will only apply to the first incident and Landlord will cover the
subsequent related, recurring remediation expenses.

     12.3 No Warranties or Representations.

          (a) Except as expressly provided herein, neither Landlord nor Landlord’s agents make any
warranty or representation with respect to the suitability or fitness of the space for the conduct
of Tenant’s business, or for any other purpose.

          (b) Neither Landlord nor Landlord’s agents make any warranty or representation with respect to
any other tenants or users that may or may not construct improvements, occupy space or conduct
business within the Center, and Tenant hereby acknowledges and agrees that it is not relying on any
warranty or representation relating thereto in entering into this Lease.

          (c) Landlord specifically disavows any oral representations made by or on behalf of its
employees, agents and independent contractors, and Tenant hereby acknowledges and agrees that it is
not relying and has not relied on any oral representations in entering into this Lease.

          (d) Landlord has not made any promises or representations, expressed or implied, that it will
renew, extend or modify this Lease in favor of Tenant or any permitted transferee of Tenant, except
as may be specifically set forth herein or in a written instrument signed by both parties amending
this Lease in the future.

          (e) Notwithstanding that the rent payable to Landlord hereunder may at times include the cost
of guard service or other security measures, it is specifically understood that Landlord does not
represent, guarantee or assume responsibility that Tenant will be secure from any damage, injury or
loss of life because of such guard service. Landlord shall have no obligation to hire, maintain or
provide such services, which may be withdrawn or changed at any time with or without notice to
Tenant or any other person and without liability to Landlord. To induce Landlord to provide such
service if Landlord elects in its sole discretion to do so, Tenant agrees that (i) Landlord shall
not be liable for any damage, injury or loss of life related to the provision or nonprovision of
such service, and (ii) Landlord shall have no responsibility to protect Tenant, or its employees or
agents, from the acts of any third parties (including other occupants of the Center) occurring in
or about the Premises or in or about the Center (including without limitation the criminal acts of
any third parties), whether or not the same could have been prevented by any such guard service or
other security measures.

          (f) The purpose of the site plan attached hereto as Exhibit “A” is to show the approximate
location of the Premises, Landlord reserves the right from time to time to relocate, vary, and
adjust the size of the various buildings and the location of any tenant other than Tenant. Landlord
reserves the right from time to time (i) to make alterations or additions to and to build
additional stories on the building in which the Premises are located (upon prior written notice to
Tenant) and to build other building(s) adjoining the Premises, and (ii) to construct other
buildings or improvements in the Center from time to time and to make alterations thereof or
additions thereto and to build additional stories on any such buildings and to build adjoining the
same so long as, in all cases, Tenant’s access to the Premises and Tenant’s parking are not
adversely affected. In addition, Landlord shall take commercially reasonable efforts to avoid to
any material interference with Tenant’s use of the Premises. Easements for light and air are not
included in the leasing of these Premises to Tenant. Landlord also reserves the right to relocate,
vary, and adjust the size of the automobile parking areas and other Common Facilities, as further
described in Section 6.4.

     12.4 Keys. At Landlord’s election, Tenant shall re-key the Premises at its sole cost upon
taking possession thereof.
Tenant hereby acknowledges that various persons have had access to the keys to the Premises as
keyed prior to Tenant’s
possession, and that Landlord disclaims all liability and responsibility for any unauthorized
distribution or possession of such
prior keys. In the event that Tenant is required to re-key the Premises, Tenant shall
provide Landlord with a “master key” or
other means of entering the Premises for the purposes described in Section 11.7.

13. INDEMNIFICATION.

     Tenant shall indemnify, defend and hold Landlord and Landlord’s officers, directors,
shareholders, partners, principals, employees, agents, representatives, and other related entities
and individuals (collectively, “Landlord’s Related Entities”), harmless from and against any and
all claims, actions, damages, liability, costs, and expenses, including reasonable attorneys’ fees
and costs, arising from personal injury, death, and/or property damage and arising from: (a)
Tenant’s use or occupation of the Premises or any work or activity done or permitted by Tenant in
or about the Premises (including without limitation any storage or display of materials or
merchandise, or other activity by Tenant in the Common Facilities), (b) any activity, condition or
occurrence in the Premises or other area under the control of Tenant, (c) any breach or failure to
perform any obligation imposed on Tenant under this Lease, or (d) any other act or omission of
Tenant or its assignees or subtenants or their respective agents, contractors, employees,
customers, invitees or licensees. Tenant’s obligation to defend and indemnify shall include, but
not be limited to, claims based on duties, obligations, or liabilities imposed on Landlord or
Landlord’s Related Entities by statute, ordinance, regulation, or other law, such as claims based
on theories of peculiar risk and nondelegable duty, and to any and all other claims based on the
negligent act or omission of Landlord or Landlord’s Related Entities. The parties intend that this
provision be interpreted as the broadest Type I indemnity provision as defined in McDonald & Kruse,
Inc. v. San Jose Steel Co., 29 Cal. App. 3rd 413 (1972), and as allowed by law between a landlord
and a tenant. Upon notice from Landlord, Tenant shall, at Tenant’s sole expense and by counsel
satisfactory to Landlord, defend any action or proceeding brought against Landlord or Landlord’s
Related Entities by reason of any such claim. If Landlord or any of Landlord’s Related Entities is
made a party to any litigation commenced by or against Tenant, then Tenant shall indemnify, defend
and hold Landlord and Landlord’s Related Entities harmless from, and shall pay all costs, expenses
and attorneys’ fees and costs incurred or paid in connection with, such litigation. Tenant, as a
material part of the consideration to Landlord hereunder, assumes all risk of, and waives all
claims against Landlord for, personal injury or property damage in, upon or about the Premises,
from any cause whatsoever. Provided, however, that the indemnifications and waivers of Tenant set
forth in this Section shall not apply to damage and liability caused (i) by the gross negligence or
willful misconduct of Landlord, and (ii) through no fault of Tenant, its assignees or subtenants,
or their respective agents, contractors, employees, customers, invitees or licensees.

14. HAZARDOUS MATERIALS.

     14.1 Definitions. “Hazardous Materials Laws” means any and all federal, state or local laws,
ordinances, rules, decrees, orders, regulations or court decisions relating to hazardous
substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on,
under or about the Premises, or soil and ground water conditions, including, but not limited to,
the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as
amended, 42 U.S.C. §9601, et seq., the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C.
§6901, et seq., the Hazardous Materials Transportation Act, 49 U.S.C, §1801, et seq., the
California Hazardous Waste Control Act, Cal. Health and Safety Code §25100, ef seq., the
Carpenter-Presley-Tanner Hazardous Substances Account Act, Cal. Health and Safety Code §25300, et
seq., the Safe Drinking Water and Toxic Enforcement Act, Cal. Health and Safety Code §25249.5, et
seq., the Porter-Cologne Water Quality Control Act, Cal. Water Code §13000, et seq., any amendments
to the foregoing, and any similar federal, state or local laws, ordinances, rules, decrees, orders
or regulations. “Hazardous Materials” means any chemical, compound, material, substance or other
matter that: (a) is defined as a hazardous substance, hazardous material, hazardous waste or toxic
substance under any Hazardous Materials Law, (b) is controlled or governed by any

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Hazardous Materials Law or gives rise to any reporting, notice or publication requirements
hereunder, or gives rise to any liability, responsibility or duty on the part of Tenant or Landlord
with respect to any third person hereunder; or (c) is flammable or explosive material, oil,
asbestos, urea formaldehyde, radioactive material, nuclear medicine material, drug, vaccine,
bacteria, virus, hazardous waste, toxic substance, or related injurious or potentially injurious
material (by itself or in combination with other materials).

     14.2 Use of Hazardous Materials. Tenant shall not allow any Hazardous Material to be used,
generated, manufactured, released, stored or disposed of on, under or about, or transported from,
the Premises, unless: (a) such use is specifically disclosed to and approved by Landlord in writing
prior to such use, and (b) such use is conducted in compliance with the provisions of this Article.
Landlord’s consent may be withheld in Landlord’s sole discretion and, if granted, may be revoked at
any time. Landlord may approve such use subject to reasonable conditions to protect the Premises and
Landlord’s interests. Landlord may withhold approval if Landlord determines that such proposed use
involves a material risk of a release or discharge of Hazardous Materials or a violation of any
Hazardous Materials Laws or that Tenant has not provided reasonably sufficient assurances of its
ability to remedy such a violation and fulfill its obligations under this Article. Notwithstanding
the foregoing, Landlord hereby consents to Tenant’s use, storage or disposal of products containing
small quantities of Hazardous Materials that are of a type customarily found in offices and
households (such as aerosol cans containing insecticides, toner for copies, paints, paint remover
and the like), provided that Tenant shall handle, use, store and dispose of such Hazardous
Materials in a safe and lawful manner and shall not allow such Hazardous Materials to contaminate
the Premises.

     14.3 Compliance With Laws; Handling Hazardous Materials. Tenant shall strictly comply with,
and shall maintain the Premises in compliance with, all Hazardous Materials Laws, Tenant shall
obtain, maintain in effect and comply with the conditions of all permits, licenses and other
governmental approvals required for Tenant’s operations on the Premises under any Hazardous
Materials Laws, including, but not limited to, the discharge of appropriately treated Hazardous
Materials into or through any sanitary sewer serving the Premises, At Landlord’s request. Tenant
shall deliver copies of, or allow Landlord to inspect, all such permits, licenses and approvals.
All Hazardous Materials removed from the Premises shall be removed and transported by duly licensed
haulers to duly licensed disposal facilities, in compliance with all Hazardous Materials Laws.
Tenant shall perform any monitoring, testing, investigation, clean-up, removal, detoxification,
preparation of closure or other required plans and any other remedial work required by any
governmental agency or lender, or recommended by Landlord’s environmental consultants, as a result
of any release or discharge or potential release or discharge of Hazardous Materials affecting the
Premises or the Center or any violation or potential violation of Hazardous Materials Laws by
Tenant or any assignee or subtenant of Tenant or their respective agents, contractors, employees,
licensees or invitees (collectively. “Remedial Work”). Landlord shall have the right to intervene
in any governmental action or proceeding involving any Remedial Work, and to approve performance of
the work, in order to protect Landlord’s interests. Tenant shall not enter into any settlement
agreement, consent decree or other compromise with respect to any claims relating to Hazardous
Materials without notifying Landlord and providing ample opportunity for Landlord to intervene.
Tenant shall additionally comply with the recommendations of Landlord’s and Tenant’s insurers based
upon National Fire Protection Association standards or other applicable guidelines regarding the
management and handling of Hazardous Materials. If any present or future law imposes any
requirement of reporting, survey, investigation or other compliance upon Landlord, Tenant, or the
Premises, and if such requirement is precipitated by a transaction involving the Lease (other than
the natural expiration thereof at the end of the lease term), including without limitation the
assignment or sublease, in whole or in part of Tenant’s interest in the Lease, or the change in the
ownership of Tenant, then Tenant shall fully comply with and pay all costs of compliance with such
requirement, including Landlord’s attorneys’ fees and costs,

     14.4 Notice; Reporting. Tenant shall notify Landlord, in writing, within three (3) days after
any of the following: (a) Tenant has knowledge, or has reasonable cause to believe, that any
Hazardous Material has been released, discharged or is located on, under or about the Premises,
whether or not the release or discharge is in quantities that would otherwise be reportable to a
public agency, (b) Tenant receives any order of a governmental agency requiring any Remedial Work
pursuant to any Hazardous Materials Laws, (c) Tenant receives any warning, notice of inspection,
notice of violation or alleged violation or Tenant receives notice or knowledge of any proceeding,
investigation or enforcement action, pursuant to any Hazardous Materials Laws; or(d) Tenant
receives notice or knowledge of any claims made or threatened by any third party against Tenant or
the Premises relating to any loss or injury resulting from Hazardous Materials. If the
potential risk of any of the foregoing events is material, Tenant shall deliver immediate
verbal notice to Landlord, in addition to written notice as set forth above. Tenant shall deliver
to Landlord copies of all test results, reports and business or management plans required to be
filed with any governmental agency pursuant to any Hazardous Materials Laws.

     14.5 Indemnity. Tenant shall indemnify, defend and hold Landlord (and its partners and their
respective officers, directors, employees and agents) harmless from and against any and all
liabilities, claims, suits, judgments, actions, investigations, proceedings, costs and expenses
(including reasonable attorneys’ fees and costs) arising out of or in connection with any breach of
any provisions of this Article or directly or indirectly arising out of the use, generation,
storage, release, disposal or transportation of Hazardous Materials by Tenant, or any assignee or
subtenant of Tenant, or their respective agents, contractors, employees, licensees, or invitees,
on, under or about the Premises during the Lease Term or any other period of Tenant’s actual or
constructive occupancy of the Premises, including, but not limited to, all foreseeable and
unforeseeable consequential damages and the cost of any Remedial Work. Any defense of Tenant
pursuant to this Section shall be by counsel acceptable to Landlord. Neither the consent by
Landlord to the use, generation, storage, release, disposal or transportation of Hazardous
Materials nor the strict compliance with all Hazardous Materials Laws shall excuse Tenant from
Tenant’s indemnification obligations pursuant to this Article. The foregoing indemnity shall be in
addition to and not a limitation of the indemnification provisions of Article 13 of this Lease.
Tenant’s obligations pursuant to this Article shall survive the termination or expiration of this
Lease.

     14.6 Entry and Inspection; Cure. Landlord and its agents, employees and contractors, shall
have the right (but not the obligation) to enter the Premises at all reasonable times to inspect
the Premises and Tenant’s compliance with the terms and conditions of this Article, or to conduct
investigations and tests. No prior notice to Tenant shall be required in the event of an emergency,
or if Landlord has reasonable cause to believe that violations of this Article have occurred, or if
Tenant consents at the time of entry. In all other cases, Landlord shall give at least twenty-four
(24) hours’ prior notice to Tenant. Landlord shall have the right (but not the obligation) to
remedy any violation by Tenant of the provisions of this Article pursuant to Section 22.3 of this
Lease or to perform any Remedial Work. Tenant shall pay, upon demand, all costs incurred by
Landlord in investigating any such violations or potential violations or performing Remedial Work,
plus interest thereon at the rate specified in this Lease from the date of demand until the date
paid by Tenant.

     14.7 Termination; Expiration. Upon termination or expiration of this Lease, Tenant shall, at
Tenant’s cost, remove any equipment, improvements or storage facilities utilized in connection with
any Hazardous Materials and shall clean up, detoxify, repair and otherwise restore the Premises to
a condition free of Hazardous Materials, to the extent such condition is caused by Tenant or any
assignee or subtenant of Tenant or their respective agents, contractors, employees, licensees or
invitees.

     14.8 Exit Assessment. Prior to execution of this Lease, Landlord shall provide Tenant with a
copy of the latest Phase 1 Exit Assessment showing that the Premises are free of any contamination
from Hazardous Materials. No later than ten (10) days after the expiration or earlier termination
of this Lease, Tenant shall also cause to be performed, at its sole expense, an environmental
assessment (the “Exit Assessment”) of the Premises. Landlord agrees to allow Tenant access to the
Premises for such purpose. The Exit Assessment must be performed by a qualified environmental
consultant acceptable to Landlord, and shall, to the extent such items are contained in the Exit
Assessment furnished to Tenant prior to

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Lease execution, include without limitation the following, as applicable to the Premises and
Tenant’s activities: (a) inspection of all floors, walls, ceiling tiles, benches, cabinet
interiors, sinks, the roof and other surfaces for signs of contamination and/or deterioration
related to Hazardous Materials, (b) inspection of any and all ducts, hoods and exhaust systems for
signs of contamination, deterioration and/or leakage related or potentially related to Hazardous
Materials, (c) inspection of all readily accessible drain lines and other discharge piping for
signs of deterioration, loss of integrity and leakage, (d) Tenant interviews and review of
appropriate Tenant records to determine the uses to which Tenant has put the Premises that involve
or may have involved Hazardous Materials, and to determine if any known discharges to the Premises
or ground or soils from Tenant’s activities have occurred, (e) documentation in detail of all
observations, including dated photographs, (f) if applicable a certification that all areas
inspected are clean and free of any Hazardous Materials and that the investigation conducted by the
consultant does indicate that any release of any Hazardous Materials has occurred in the Premises
or the Center as a result of Tenant’s activities, (g) if applicable, a detailed description of
Hazardous Materials remaining in the Premises and of any contamination, deterioration and/or
leakage observed, together with detailed recommendations for the removal, repair or abatement of
the same, and (h) if applicable, a detailed description of evidence of possible or past releases of
Hazardous Materials, together with detailed recommendations for the prevention of the same in the
future. Landlord shall have the right to require additional evaluations or work in connection with
the Exit Assessment based upon Tenant’s use of the Premises, any actual or suspected Hazardous
Materials issues, or other reasonable factors. The original of the Exit Assessment shall be
addressed to Landlord and shall be provided to the Landlord within twenty (20) days of the
expiration or earlier termination of the Lease. In addition to Tenant’s obligations under Section
14.7, Tenant agrees to fully implement and address all recommended actions contained in the Exit
Assessment, at its sole cost, within thirty (30) days of the date thereof.

     14.9 Event of Default. The release or discharge of any Hazardous Material or the violation of
any Hazardous Materials Law by Tenant or any assignee or subtenant of Tenant shall be a material
Event of Default by Tenant under this Lease. In addition to or in lieu of the remedies available
under this Lease as a result of such Event of Default, Landlord shall have the right, without
terminating this Lease, to require Tenant to suspend its operations and activities on the Premises
until Landlord is satisfied that appropriate Remedial Work has been or is being adequately
performed; Landlord’s election of this remedy shall not constitute a waiver of Landlord’s right
thereafter to declare an Event of Default and pursue any other available remedy.

15. ALTERATIONS; LIENS.

     15.1 Alterations by Tenant. Tenant shall not make any alterations, additions or improvements
(“Alterations”) to the Premises without Landlord’s prior written consent, except for nonstructural
Alterations that cost $5,000 or less and are not visible from the exterior of the Premises. All
Alterations installed by Tenant shall be new or completely reconditioned. Landlord shall have the
right to approve the contractor, the method of payment of the contractor, and the plans and
specifications for all proposed Alterations. Tenant shall obtain Landlord’s consent to all proposed
Alterations requiring Landlord’s consent prior to the commencement of any such Alterations.
Tenant’s request for consent shall be accompanied by information identifying the contractor and
method of payment and two (2) copies of the proposed plans and specifications. All Alterations of
whatever kind and nature shall become at once a part of the realty and shall be surrendered with
the Premises upon expiration or earlier termination of the Lease Term, unless Landlord requires
Tenant to remove the same as provided in Article 20. If Tenant demolishes or removes any
then-existing tenant improvements or other portions of the Premises or the Building (including
without limitation any previously-installed Alterations), Tenant shall promptly commence and
diligently pursue to completion the Alterations then underway or shall otherwise restore the
Premises and the Building to its condition and state of improvement prior to such demolition or
removal. During the Lease Term, Tenant agrees to provide, at Tenant’s expense, a policy of
insurance covering loss or damage to Alterations made by Tenant, in an amount adequate to repair or
replace the same, naming Landlord as an additional insured. Provided, however, Tenant may install,
without Landlord’s prior consent, movable furniture, trade fixtures, machinery or equipment in
conformance with applicable governmental rules or ordinances and remove the same upon expiration or
earlier termination of this Lease as provided in Article 20.

     15.2 Permits and Governmental Requirements. Tenant shall obtain, at Tenant’s sole cost and
expense, all building permits and other permits of every kind and nature required by any
governmental agency having jurisdiction in connection
with the Alterations. Tenant shall indemnify, defend and hold Landlord and Landlord’s
officers, directors, shareholders, partners, principals, employees and agents, and their respective
successors and assigns, harmless from and against any and all claims, actions, damages, liability,
costs, and expenses, including reasonable attorneys’ fees and costs, arising out of any failure by
Tenant or Tenant’s contractor or agents to obtain all required permits, regardless of when such
failure is discovered. Tenant shall do any and all additional construction, alterations,
improvements and retrofittings required to be made to the Premises and/or the Center, or any other
property of Landlord as a result of, or as may be triggered by, Tenant’s Alterations. Landlord
shall have the right to do such construction itself; but in all instances Tenant shall pay all
costs directly or indirectly related to such work and shall indemnify, defend and hold Landlord and
Landlord’s officers, directors, shareholders, partners, principals, employees and agents, and their
respective successors and assigns, harmless from and against any and all claims, actions, damages,
liability, costs, and expenses, including attorneys’ fees and costs, arising out of any such
additionally required work. All payment and indemnification obligations under this Section shall
survive the expiration or earlier termination of the Lease Term.

     15.3 Liens. Tenant shall pay when due all claims for any work performed, materials furnished
or obligations incurred by or for Tenant, and Tenant shall keep the Premises free from any liens
arising with respect thereto. If Tenant fails to cause any such lien to be released within fifteen
(15) days after imposition, by payment or posting of a proper bond, Landlord shall have the right
(but not the obligation) to cause such release by such means as Landlord deems proper. Tenant shall
pay Landlord upon demand for all costs incurred by Landlord in connection therewith (including
attorneys’ fees and costs), with interest at the rate specified in Section 22.4 from the date of
payment by Landlord to the date of payment by Tenant. Tenant will notify Landlord in writing thirty
(30) days prior to commencing any alterations, additions, improvements or repairs in order to allow
Landlord time to file a notice of nonresponsibility.

16. DAMAGE AND DESTRUCTION.

     16.1 Partial Insured Damage. If the Premises or any building in which the Premises are located
are partially damaged or destroyed during the Lease Term, Landlord shall make the necessary
repairs, provided such repairs can reasonably be completed within sixty (60) days after the date of
the damage or destruction in accordance with applicable laws and regulations and provided that
Landlord receives sufficient insurance proceeds to pay the cost of such repairs. In such event,
this Lease shall continue in full force and effect. If such repairs cannot reasonably be completed
within sixty (60) days after the date of the damage or destruction or if Landlord does not receive
sufficient insurance proceeds, then Landlord may, at its option, elect within forty-five (45) days
of the date of the damage or destruction to proceed with the necessary repairs, in which event this
Lease shall continue in full force and effect and Landlord shall complete the same within a
reasonable time. If Landlord does not so elect to make such repairs or if such repairs cannot be
made under applicable laws and regulations, this Lease may be terminated at the option of either
party within ninety (90) days of the occurrence of such damage or destruction.

     16.2 Insurance Deductible. If Landlord elects to repair any damage caused by an insured
casualty as provided in Section 16.1, Tenant shall, within fifteen (15) days after receipt of
written notice from Landlord, pay the amount of any

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deductible (or its share thereof) under
any insurance policy covering such damage or destruction,
in accordance with Section 9.4 above.

     16.3 Uninsured Damage.
In the event of any damage or destruction of the Premises or any
building in which the Premises are located by an uninsured casualty, Landlord shall have the right
to elect either to repair such damage or to terminate this Lease. Such election shall be exercised
by written notice to Tenant within forty-five (45) days of such damage or destruction.

     16.4 Total Destruction. A total destruction (including any destruction required by any
authorized public authority) of either the Premises or any building in which the Premises are
located shall terminate this Lease.

     16.5 Partial Destruction of Center. If fifty percent (50%) or more of the rentable area of the
Center is damaged or destroyed by fire or other cause, notwithstanding that the Premises may be
unaffected, Landlord shall have the right, to be exercised by notice in writing delivered to Tenant
within ninety (90) days after said occurrence, to elect to terminate this Lease.

     16.6 Tenant’s Obligations. Landlord shall not be required to repair any injury or damage by
fire or other cause, or to make any restoration or replacement of any Alterations, trade fixtures,
equipment or personal property placed or installed in the Premises by or on behalf of Tenant.
Unless this Lease is terminated pursuant to this Article, Tenant shall promptly repair, restore or
replace the same in the event of damage. Nothing contained in this Article shall be construed as a
limitation on Tenant’s liability for any damage or destruction if such liability otherwise exists.

     16.7 Rent Abatement. If Landlord repairs the Premises or the building after damage or
destruction as described in this Article, Minimum Monthly Rent payable by Tenant hereunder from the
date of damage until the repairs are completed shall be equitably reduced, based upon the extent to
which such repairs interfere with the business carried on by Tenant in the Premises. Nothing in
this Section shall be construed to permit the abatement in whole or in part of Percentage Rent, but
the computation of Percentage Rent shall be based upon the revised Minimum Monthly Rent as the same
may be abated pursuant to this Section. Landlord agrees to take reasonable steps to make a claim
for and collect any rental income insurance proceeds that might be available.

     16.8 Waiver of Inconsistent Statutes. The parties’ rights and obligations in the event of
damage or destruction shall be governed by the provisions of this Lease; accordingly, Tenant waives
the provisions of California Civil Code Sections 1932(2) and 1933(4), and any other statute, code
or judicial decisions that grants a tenant a right to terminate a lease in the event of damage or
destruction of a leased premises.

17. CONDEMNATION.

     17.1 Condemnation of Premises. If any portion of the Premises is taken or condemned for a
public or quasi-public use (“Condemnation”), and a portion remains that is susceptible of
occupation, then this Lease shall terminate as to the portion so taken as of the date title vests
in the condemnor, but shall remain in full force and effect as to the remaining Premises. Landlord
shall, within a reasonable period of time, restore the remaining Premises as nearly as practicable
to the condition existing prior to the condemnation; provided, however, if Landlord receives
insufficient funds from the condemnor for such purpose, Landlord may elect to terminate this Lease.
If this Lease continues in effect, the Minimum Monthly Rent shall be equitably adjusted, based upon
the value of the Premises remaining after the Condemnation compared to the value of the Premises
prior to Condemnation. Provided, however, in the event of any such partial condemnation, Landlord
shall have the option to terminate this Lease entirely as of the date title vests in the condemnor.
If all the Premises are condemned, or such portion so that there does not remain a portion that is
susceptible of occupation, or if such a substantial portion of the Center is condemned that it is
no longer economically appropriate to lease the Premises on the terms and conditions of this Lease,
as reasonably determined by Landlord, then at the election of Landlord this Lease shall terminate
as of the date title vests in the condemnor.

     17.2 Condemnation of Parking Area. If all or any portion of the parking area in the Center is
condemned such that the ratio of the total square footage of parking and other Common Facilities
compared to the total rentable building square
footage of the Center is reduced to a ratio below two to one, then at the election of Landlord
this Lease shall terminate as of the date title vests in the condemnor.

     17.3 Condemnation Award. All compensation awarded upon any such partial or total Condemnation
shall be paid to Landlord and Tenant shall have no claim thereto, and Tenant hereby irrevocably
assigns and transfers to Landlord any right to compensation or damages by reason of any such
Condemnation. Provided, however, that Tenant shall have the right to claim and recover from the
condemning authority, but not from Landlord, such compensation as may be separately awarded or
recoverable by Tenant in Tenant’s own right on account of any damage to Tenant’s business by reason
of the Condemnation and on account of any cost that Tenant may incur in removing Tenant’s
merchandise, furniture, fixtures, leasehold improvements and equipment. If this Lease is
terminated, in whole or in part, in accordance with this Article as a result of a Condemnation,
Tenant shall have no claim for the value of any unexpired term of this Lease.

18. ASSIGNMENT AND SUBLETTING.

     18.1 Landlord’s Consent Required. Tenant shall not voluntarily or involuntarily assign,
sublease, mortgage, encumber, or otherwise transfer all or any portion of the Premises or its
interest in this Lease (collectively, “Transfer”) without Landlord’s prior written consent, which
consent Landlord shall not unreasonably withhold. Landlord may withhold its consent until Tenant
has complied with the provisions of Sections 18.2 and 18.3. Any attempted Transfer without
Landlord’s written consent shall be void and shall constitute a noncurable Event of Default under
this Lease. If Tenant is a corporation, any cumulative Transfer of more than fifty percent (50%) of
the voting stock of such corporation shall constitute a Transfer requiring Landlord’s consent
hereunder; provided, however, that this sentence shall not apply to any corporation whose stock is
publicly traded. If Tenant is a partnership, limited liability company, trust or other entity, any
cumulative Transfer of more than fifty percent (50%) of the partnership, membership, beneficial or
other ownership interests therein shall constitute a Transfer requiring Landlord’s consent
hereunder. Tenant shall not have the right to consummate a Transfer or to request Landlord’s
consent to any Transfer if any Event of Default has occurred and is continuing or if Tenant or any
affiliate of Tenant is in default under any lease of any other real property owned or managed (in
whole or in part) by Landlord or any affiliate of Landlord.

     18.2 Landlord’s Election. Tenant’s request for consent to any Transfer shall be accompanied by
a written statement setting forth the details of the proposed Transfer, including the name,
business and financial condition of the prospective Transferee, financial details of the proposed
Transfer (e.g., the term and the rent and security deposit payable), and any other related
information that Landlord may reasonably require. Landlord shall have the right; (a) to withhold
consent to the Transfer, if reasonable, (b) to grant consent, (c) to terminate this Lease as to the
portion of the Premises affected by any proposed Transfer, in which event Landlord may enter into a
lease directly with the proposed Transferee, or (d) to consent on the condition that Landlord be
paid, as Additional Rent hereunder, fifty percent (50%) of all subrent or other consideration to be
paid to Tenant under the terms of the Transfer in excess of the total rent due hereunder
(including, if such Transfer is an assignment or if such Transfer is to occur directly or
indirectly in connection with the sale of any assets of Tenant, fifty percent (50%) of the amount
of the consideration attributable to the Transfer of the Lease, as reasonably determined by
Landlord). The grounds on which Landlord may reasonably withhold its consent to any requested
Transfer include, without limitation, that: (i) the proposed Transferee’s contemplated use of the
Premises following the proposed Transfer is not reasonably similar to the use of the Premises
permitted hereunder, (ii) in Landlord’s reasonable business judgment, the

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proposed Transferee lacks sufficient business reputation or experience to operate a successful
business of the type and quality permitted under this Lease, (iii) in Landlord’s reasonable
business judgment, the proposed Transferee lacks sufficient net worth, working capital, anticipated
cash flow and other indications of financial strength to meet all of its obligations under this
Lease, (iv) the proposed Transfer would breach any covenant of Landlord respecting a radius
restriction, location, use or exclusivity in any other lease, financing agreement, or other
agreement relating to the Center, and (v) in Landlord’s reasonable business judgment, the
possibility of a release of Hazardous Materials is materially increased as a result of the Transfer
or if Landlord does not receive sufficient assurances that the proposed Transferee has the
experience and financial ability to remedy a violation of Hazardous Materials and to fulfill its
obligations under Articles 13 and 14. In connection with any such Transfer, Landlord shall have the
right to require Tenant, at Tenant’s sole cost, to cause environmental testing meeting the
requirements of an Exit Assessment described in Section 14.8 to be performed. Landlord need only
respond to any request by Tenant hereunder within a reasonable time of not less than ten (10)
business days after receipt of all information and other submission required in connection with
such request.

     18.3 Costs; Transfer Fee. Tenant shall pay all costs and expenses in connection with any
permitted Transfer, including any real estate brokerage commissions due with respect to the
Transfer. Tenant shall pay all attorneys’ fees and costs incurred by Landlord and a fee of $500 to
reimburse Landlord for costs and expenses incurred in connection with any request by Tenant for
Landlord’s consent to a Transfer. Such fee shall be delivered to Landlord concurrently with
Tenant’s request for consent.

     18.4 Assumption; No Release of Tenant. Any permitted transferee shall assume in writing all
obligations of Tenant under this Lease, utilizing a form of assumption agreement provided or
approved by Landlord, and an executed copy of such assumption agreement shall be delivered to
Landlord within fifteen (15) days after the effective date of the Transfer. The taking of
possession of all or any part of the Premises by any such permitted assignee or subtenant shall
constitute an agreement by such person or entity to assume without limitation or qualification all
of the obligations of Tenant under this Lease, notwithstanding any failure by such person to
execute the assumption agreement required in the immediately preceding sentence. No permitted
Transfer shall release or change Tenant’s primary liability to pay the rent and to perform all
other obligations of Tenant under this Lease. Landlord’s acceptance of rent from any other person
is not a waiver of any provision of this Article or a consent to Transfer. Consent to one Transfer
shall not constitute a consent to any subsequent Transfer. If any transferee defaults under this
Lease, Landlord may proceed directly against Tenant without pursuing remedies against the
transferee. Landlord may consent to subsequent Transfers or modifications of this Lease by Tenant’s
transferee, without notifying Tenant or obtaining its consent, and such action shall not relieve
Tenant of its liability under this Lease.

     18.5 No Merger. No merger shall result from any Transfer pursuant to this Article, any
surrender by Tenant of its interest under this Lease, or any termination hereof in any other
manner. In any such event, Landlord may either terminate any or all subleases or succeed to the
interest of Tenant thereunder.

     18.6 Reasonable Restriction. Tenant acknowledges that the restrictions on Transfer contained
herein are reasonable restrictions for purposes of Section 22.2 of this Lease and California Civil
Code Section 1951.4.

19. SUBORDINATION; ATTORNMENT; ESTOPPEL CERTIFICATE.

     19.1 Subordination. This Lease is junior and subordinate to all ground leases, mortgages,
deeds of trust, and other security instruments now or hereafter affecting the real property of
which the Premises are a part, and to all advances made on the security thereof, and to all
renewals, modifications, consolidations, replacements and extensions thereof. If any mortgagee,
beneficiary under deed of trust or ground lessor shall elect to have this Lease prior to the lien
of its mortgage, deed of trust or ground lease, and gives written notice thereof to Tenant, this
Lease shall be deemed prior thereto. Tenant agrees to execute any documents required to effectuate
such subordination or to make this Lease prior to the lien of any such mortgage, deed of trust or
ground lease, as the case may be, and if Tenant fails to do so within fifteen (15) days after
written demand, Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant’s
attorney-in-fact and in Tenant’s name, place and stead, to do so.

     19.2 Attornment. If Landlord sells, transfers, or conveys its interest in the Premises or this
Lease, or if the same is foreclosed judicially or nonjudicialy, or is otherwise acquired, by a
mortgagee, beneficiary under deed of trust or ground lessor, upon the request and at the sole
election of Landlord’s lawful successor, Tenant shall attorn to said successor, provided said
successor accepts the Premises subject to this Lease. Tenant shall, upon request of Landlord or any
such mortgagee, beneficiary under deed of trust or ground lessor, execute a subordination,
non-disturbance and attornment agreement (“SNDA”) confirming the same, in form and substance
reasonably acceptable to Landlord and Tenant. Such agreement shall provide, among other things,
that said successor shall not be bound by (a) any prepayment of more than one (1) month’s rent
(except any Security Deposit) or (b) any material amendment of this Lease made after the later of
the initial effective date of this Lease, or the date that such successor’s lien or interest first
arose, unless said successor shall have consented to such amendment, and shall further provide that
upon Tenant’s continued compliance with the terms of this Lease, Tenant’s occupancy of the Premises
shall not be disturbed. Prior to execution of this Lease, Landlord shall use commercially
reasonable efforts to obtain from any current mortgagee, beneficiary under a deed of trust or
ground lessor an SNDA covering this Lease.

     19.3 Estoppel Certificates. Within fifteen (15) days after written request from Landlord,
Tenant at Tenant’s sole cost shall execute, acknowledge and deliver to Landlord a written statement
certifying: (a) that this Lease is unmodified and in full force and effect (or, if modified,
stating the nature of such modifications and certifying that this Lease is in full force and effect
as so modified), (b) the amount of any rent paid in advance, and (c) that, to Tenant’s knowledge,
there are no uncured defaults on the part of Landlord, or specifying the nature of such defaults if
any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser of
or lender on the Premises. Tenant’s failure to deliver such statement within said 15-day period
shall constitute a conclusive acknowledgment by Tenant: (i) that this Lease is in full force and
effect without modification except as may be represented by Landlord, (ii) that not more than one
(1) month’s rent has been paid in advance, and (iii) that there are no uncured defaults in
Landlord’s performance.

20. SURRENDER OF PREMISES.

     20.1 Condition of Premises. Upon the expiration or earlier termination of this Lease, Tenant
shall surrender the Premises to Landlord, broom clean and in the same condition and state of repair
as at the commencement of the Lease Term, except for ordinary wear and tear that Tenant is not
otherwise obligated to remedy under the provisions of this Lease. Tenant shall deliver all keys to
the Premises and the building of which the Premises are a part to Landlord. Upon Tenant’s vacation
of the Premises, at Tenant’s sole cost and expense, Tenant shall remove all portable furniture,
trade fixtures, machinery, equipment, signs and other items of personal property (unless prohibited
from doing the same under Section 20.2), and shall remove any Alterations (whether or not made with
Landlord’s consent) that Landlord may require Tenant to remove; except that Tenant shall not be
required to remove its architectural embellishments to the doorway providing entry into the
Building and any improvements made to expand the lunchroom. Tenant shall repair all damage to the
Premises caused by such removal and shall restore the Premises to its prior condition, all at
Tenant’s expense. Such repairs shall be performed in a manner satisfactory to Landlord and shall
include, but are not limited to, the following: capping all plumbing, capping all electrical
wiring, repairing all holes in walls, restoring damaged floor and/or ceiling tiles, and thorough
cleaning of the Premises. If Tenant fails to remove any items that Tenant has an obligation to
remove under this Section when required by Landlord or otherwise, such items shall, at Landlord’s
option, become the property of Landlord and Landlord shall have the right to remove and retain or
dispose of the same in any manner, without any obligation to account to Tenant for the

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proceeds thereof. Tenant waives all claims against Landlord for any damages to Tenant resulting
from Landlord’s retention or disposition of such Alterations or personal property. Tenant shall be
liable to Landlord for Landlord’s costs of removing, storing and disposing of such items. If any
present or future law imposes any requirement of reporting, survey, investigation or other
compliance upon Landlord, Tenant, or the Premises, and if such requirement is precipitated by a
transaction involving the Lease (other than the natural expiration thereof at the end of the lease
term), including without limitation the assignment or sublease, in whole or in part of Tenant’s
interest in the Lease, or the change in the ownership of Tenant, then Tenant shall fully comply
with and pay all costs of compliance with such requirement, including Landlord’s reasonable
attorneys’ fees and costs.

     20.2 Removal of Certain Alterations, Fixtures and Equipment Prohibited. All Alterations,
fixtures (whether or not trade fixtures), machinery, equipment, signs and other items of personal
property that remain in or about the Premises upon Tenant’s vacation, shall become Landlord’s
property and shall be surrendered to Landlord with the Premises, regardless of who paid for the
same. In particular and without limiting the foregoing, Tenant shall not remove any of the
following materials or equipment without Landlord’s prior written consent, regardless of who paid
for the same and regardless of whether the same are permanently attached to the Premises: power
wiring and power panels; piping for gasses or liquids; sinks, cabinets and casework; fume hoods or
specialized air-handling and evacuation systems; drains or other equipment for the handling of
grease and/or waste water; computer, telephone and telecommunications wiring, panels and equipment;
lighting and lighting fixtures; wall coverings; drapes, blinds and other window coverings; carpets
and other floor coverings; heaters, air conditioners and other heating or air conditioning
equipment; fencing; security gates and systems; and other building operating equipment and
decorations.

     20.3 Holding Over. Tenant shall vacate the Premises upon the expiration or earlier termination
of this Lease, and Tenant shall indemnify Landlord against all liabilities, damages and expenses
incurred by Landlord as a result of any delay by Tenant in vacating the Premises. If Tenant remains
in possession of the Premises or any part thereof after the expiration of the Lease Term with
Landlord’s written permission, Tenant’s occupancy shall be a tenancy from month-to-month only, and
not a renewal or extension hereof. All provisions of this Lease (other than those relating to the
term) shall apply to such month-to-month tenancy, except that the Minimum Monthly Rent shall be
increased to 150% of the Minimum Monthly Rent in effect during the last month of the Lease Term. No
acceptance of rent, negotiation of rent checks or other act or omission of Landlord or its agents
shall extend the Expiration Date of this Lease other than a writing executed by Landlord giving
Tenant permission to remain in occupancy beyond the Expiration Date under the terms of the
immediately preceding sentence.

21. DEFAULT BY TENANT.

     The occurrence of any of the following shall constitute an “Event of Default” under this Lease
by Tenant:

          (a) Failure to pay the rent or any other monetary sums required hereunder within five (5)
days of the due date.

          (b) Failure to perform any other agreement or obligation of Tenant hereunder, if such failure
continues for fifteen(15) days after written notice by Landlord to Tenant, except as to those
Events of Default that are noncurable, in which case no such grace period shall apply; provided,
however, that if the nature of the obligation is such that more than fifteen (15) days are required
for performance, then Tenant shall not be in default if Tenant commences performance within such
15-day period and thereafter diligently prosecutes the same to completion. Landlord’s notice
described herein is intended to satisfy, and is not in addition to, any and all legal notices
required prior to commencement of an unlawful detainer action, including without limitation the
notice requirements of California Code of Civil Procedure Sections 1161 et seq.

          (c) Abandonment or vacation of the Premises by Tenant, or failure to occupy the Premises for
ten (10) consecutive days.

          (d) If any of the following occurs: (i) a petition is filed for an order of relief under the
federal Bankruptcy Code or for an order or decree of insolvency or reorganization or rearrangement
under any state or federal law, and such petition is not dismissed within thirty (30) days after
the filing thereof; (ii) Tenant makes a general assignment for the benefit of creditors; (iii) a
receiver or trustee is appointed to take
possession of any substantial part of Tenant’s assets, unless such appointment is vacated
within thirty (30) days after the date thereof; or (iv) Tenant consents to or suffers an
attachment, execution or other judicial seizure of any substantial part of its assets or its
interest under this Lease, unless such process is released or satisfied within thirty (30) days
after the occurrence thereof. If a court of competent jurisdiction determines that any of the
foregoing events is not a default under this Lease, and a trustee is appointed to take possession
(or if Tenant remains a debtor in possession), and such trustee or Tenant transfers Tenant’s
interest hereunder, then Landlord shall receive, as Additional Rent, the difference between the
rent (or other consideration) paid in connection with such transfer and the rent payable by Tenant
hereunder. Any assignee pursuant to the provisions of any bankruptcy law shall be deemed without
further act to have assumed all of the obligations of the Tenant hereunder arising on or after the
date of such assignment. Any such assignee shall, upon demand, execute and deliver to Landlord an
instrument confirming such assumption.

          (e) The occurrence of any other event that is deemed to be an Event of Default under any other
provision of this Lease.

22. REMEDIES.

     Upon the occurrence of any Event of Default by Tenant, Landlord shall have the following
remedies, each of which shall be cumulative and in addition to any other remedies now or hereafter
available at law or in equity:

     22.1 Termination of Lease. Landlord can terminate this Lease and Tenant’s right to possession
of the Premises by giving written notice of termination, and then re-enter the Premises and take
possession thereof. No act by Landlord other than giving written notice to Tenant of such
termination shall terminate this Lease. Upon termination, Landlord has the right to recover all
damages incurred by Landlord as a result of Tenant’s default, including:

          (a) The worth at the time of award of any unpaid rent that had been earned at the time of such
termination; plus

          (b) The worth at the time of award of the amount by which the unpaid rent that would have been
earned after the date of termination until the time of award exceeds the amount of the loss of rent
that Tenant proves could have been reasonably avoided; plus

          (c) The worth at the time of award of the amount by which the unpaid rent for the balance of
the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves
could have been reasonably avoided; plus

          (d) Any other amount necessary to compensate Landlord for all the detriment proximately caused
by Tenant’s default, Including, but not limited to (i) expenses for cleaning, repairing or
restoring the Premises, (ii) expenses for altering, remodeling or otherwise improving the Premises
for the purpose of reletting, (iii) brokers’ fees and commissions, advertising costs and other
expenses of reletting the Premises, (iv) costs of carrying the Premises, such as taxes, insurance
premiums, utilities and security precautions, (v) expenses in retaking possession of the Premises,
(vi) attorneys’ fees and costs, (vii) any unearned brokerage commissions paid in connection with
this Lease, and (viii) payment of any previously waived or abated Minimum Monthly Rent and/or
Additional Rent; plus

          (e) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as
may be permitted from time to time under applicable law. As used in paragraphs (a) and (b) above,
the “worth at the time of award” shall be computed by allowing interest at the maximum permissible
legal rate. As used in paragraph (c) above, the “worth at the time of award” shall be computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%).

12

 

     22.2 Continuation of Lease. Landlord has the remedy described in California Civil Code
Section 1951.4 (Landlord may continue the Lease in effect after Tenant’s breach and abandonment and
recover rent as it becomes due, if Tenant has the right to sublet or assign, subject only to
reasonable limitations), as follows:

          (a) Landlord can continue this Lease in full force and effect without terminating Tenant’s
right of possession, and Landlord shall have the right to collect rent and other monetary charges
when due and to enforce all other obligations of Tenant hereunder. Landlord shall have the right to
enter the Premises to do acts of maintenance and preservation of the Premises, to make alterations
and repairs in order to relet the Premises, and/or to undertake other efforts to relet the
Premises. Landlord may also remove personal property from the Premises and store the same in a
public warehouse at Tenant’s expense and risk. No act by Landlord permitted under this paragraph
shall terminate this Lease unless a written notice of termination is given by Landlord to Tenant or
unless the termination is decreed by a court of competent jurisdiction.

          (b) In furtherance of the remedy set forth in this Section, Landlord may relet the Premises or
any part thereof for Tenant’s account, for such term (which may extend beyond the Lease Term), at
such rent, and on such other terms and conditions as Landlord may deem advisable in its sole
discretion. Tenant shall be liable immediately to Landlord for all costs Landlord incurs in
reletting the Premises. Any rents received by Landlord from such reletting shall be applied to the
payment of: (i) any indebtedness other than rent due hereunder from Tenant to Landlord, (ii) the
costs of such reletting, including brokerage and attorneys’ fees and costs, and the cost of any
alterations and repairs to the Premises, and (iii) the payment of rent due and unpaid hereunder,
including any previously waived or abated rent. Any remainder shall be held by Landlord and applied
in payment of future amounts as the same become due and payable hereunder. In no event shall Tenant
be entitled to any excess rent received by Landlord after an Event of Default by Tenant and the
exercise of Landlord’s remedies hereunder. If the rent from such reletting during any month is less
than the rent payable hereunder, Tenant shall pay such deficiency to Landlord upon demand.

          (c) Landlord shall not, by any re-entry or other act, be deemed to have accepted any surrender
by Tenant of the Premises or Tenant’s interest therein, or be deemed to have terminated this Lease
or Tenant’s right to possession of the Premises or the liability of Tenant to pay rent accruing
thereafter or Tenant’s liability for damages under any of the provisions hereof, unless Landlord
shall have given Tenant notice in writing that it has so elected to terminate this Lease.

          (d) Tenant acknowledges and agrees that the restrictions on the Transfer of the Lease set
forth in Article 18 of this Lease constitute reasonable restrictions on such transfer for purposes of this Section
and California Civil Code Section 1951.4.

     22.3 Performance By Landlord. If Tenant fails to pay any sum of money or perform any other act
to be performed by Tenant hereunder, and such failure continues for fifteen (15) days after notice
by Landlord, Landlord shall have the right (but not the obligation) to make such payment or perform
such other act without waiving or releasing Tenant from its obligations. All sums so paid by
Landlord and all necessary incidental costs, together with interest thereon at the rate specified
in Section 22.4, shall be payable to Landlord on demand. Landlord shall have the same rights and
remedies in the event of nonpayment by Tenant as in the case of default by Tenant in the payment of
the rent.

     22.4 Late Charge; Interest on Overdue Payments. The parties acknowledge that late payment by
Tenant of Minimum Monthly Rent or any Additional Rent will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of which will be extremely difficult and impractical
to determine, including, but not limited to, processing and accounting charges, administrative
expenses, and additional interest expenses or late charges that Landlord may be required to pay as
a result of late payment on Landlord’s obligations. Therefore, if any installment of Minimum
Monthly Rent or Additional Rent is not received by Landlord on the due date, and without regard to
whether Landlord gives Tenant notice of such failure or exercises any of its remedies upon an Event
of Default, Tenant shall pay a late charge equal to the greater of five percent (5%) of the overdue
amount or One Hundred Dollars ($100), as Additional Rent hereunder. The parties hereby agree that
such late charge represents a fair and reasonable estimate of the damages Landlord will incur by
reason of late payment by Tenant. In addition, any amount due from Tenant that is not paid when due
shall bear interest at a rate equal to two percent (2%) over the then current Bank of America prime
or reference rate or eight percent (8%) per annum, whichever is greater, but not in excess of the
maximum permissible legal rate, from the date such payment is due until the date paid by Tenant.
Landlord’s acceptance of any interest or late charge shall not constitute a waiver of Tenant’s
default or prevent Landlord from exercising any other rights or remedies available to Landlord.

     22.5 Landlord’s Right to Require Advance Payment of Rent; Cashier’s Checks. if Tenant is late
in paying any component of rent more than three (3) times during the Lease Term, Landlord shall
have the right, upon notice to Tenant, to require that all rent be paid three (3) months in
advance. Additionally, if any of Tenant’s checks are returned for nonsufficient funds, or if
Landlord at any time serves upon Tenant a Three Day Notioe to Pay Rent or Quit (pursuant to
California Civil Code Sections 1161 et seq. or any successor or similar unlawful detainer
statutes), Landlord may, at its option, require that all future rent (including any sums demanded
in any subsequent three (3) day notice) be paid exclusively by money order or cashier’s check.

23. DEFAULT BY LANDLORD.

     23.1 Notice to Landlord. Landlord shall not be in default under this Lease unless Landlord
fails to perform an obligation required of Landlord within a reasonable time, but in no event later
than thirty (30) days after written notice by Tenant to Landlord and to each Mortgagee as provided
in Section 23.2, specifying the nature of the alleged default; provided, however, that if the
nature of the obligation is such that more than thirty (30) days are required for performance, then
Landlord shall not be in default if Landlord commences performance within such 30-day period and
thereafter diligently prosecutes the same to completion.

     23.2 Notice to Mortgagees. Tenant agrees to give each mortgagee or trust deed holder on the
Premises or the Center (“Mortgagee”), by registered mail, a copy of any notice of default served
upon Landlord, provided that Tenant has been previously notified in writing of the address of such
Mortgagee. Tenant further agrees that if Landlord fails to cure such default within the time
provided for in this Lease, then the Mortgagees shall have an additional thirty (30) days within
which to cure such default, or If such default cannot reasonably be cured within that time, then
such additional time as may be necessary if, within said 30-day period, any Mortgagee has commenced
and is diligently pursuing the remedies necessary to cure the default (including but not limited to
commencement of foreclosure proceedings if necessary to affect such cure), in which event this
Lease shall not be terminated while such remedies are being so diligently pursued.

     23.3 Limitations on Remedies Against Landlord. In the event Tenant has any claim or cause of
action against Landlord: (a) Tenant’s sole and exclusive remedy shall be against Landlord’s
interest in the building of which the Premises are a part, and neither Landlord nor any partner of
Landlord nor any other property of Landlord shall be liable for any deficiency, (b) no partner of
Landlord shall be sued or named as a party in any suit or action (except as may be necessary to
secure jurisdiction over Landlord), (c) no service of process shall be made against any partner of
Landlord (except as may be necessary to secure jurisdiction over the partnership), and no such
partner shall be required to answer or otherwise plead to any service of process, (d) no judgment
shall be taken against any partner of Landlord and any judgment taken against any partner of
Landlord may be vacated and set aside at any time, and (e) no writ of execution will ever be levied
against the assets of any partner of Landlord. The covenants and agreements set forth in this
Section shall be enforceable by Landlord and/or by any partner of Landlord. If Landlord fails to
give any consent that a court later holds Landlord was required to give under the terms of this
Lease, Tenant shall be entitled solely to specific performance and such other remedies as may be
specifically reserved to Tenant under this Lease, but in no event shall Landlord be responsible for
monetary damages (including incidental and consequential damages) for such failure to give consent.

13

 

24. GENERAL PROVISIONS.

     24.1 Action or Defense by Tenant. Any claim, demand, right or defense of any kind by Tenant
that is based upon or arises in any connection with the Lease or negotiations prior to its
execution shall be barred unless Tenant commences an action thereon or initiates a legal proceeding
or defense by reason thereof within one (1) year after the date of the occurrence of the event, act
or omission to which the claim, demand, right or defense relates. Tenant acknowledges and
understands that, after having had an opportunity to consult with legal counsel, the purpose of
this paragraph is to shorten the time period within which Tenant would otherwise have to raise such
claims, demands or rights of defense.

     24.2 Arbitration and Mediation; Waiver of Jury Trial. Except as provided in this Section, if
any dispute ensues between Landlord and Tenant arising out of or concerning this Lease, and if said
dispute cannot be settled through direct discussions between the parties, the parties shall first
to attempt to settle the dispute through mediation before a mutually acceptable mediator. The cost
of mediation shall be divided equally between the parties. Thereafter, any remaining,
unresolved disputes or claims shall be resolved by binding arbitration in accordance with the
rules of the American Arbitration Association, and judgment upon the award rendered by the
arbitrator may be entered in any court of competent jurisdiction. The prevailing party in any such
arbitration shall be entitled to recover reasonable costs and attorneys’ fees and costs as
determined by the arbitrator; provided, however, that the foregoing provisions regarding mediation
and arbitration shall not apply to (a) any issue or claim that might property be adjudicated in an
unlawful detainer proceeding, or (b) to any issue or claim that Landlord elects not to have
resolved through arbitration and with respect to which Landlord commences an action in law or
equity to determine the same. Without limiting the foregoing, Landlord and Tenant hereby waive
trial by jury in any action, proceeding or counterclaim (including any claim of injury or damage
and any emergency and other statutory remedy in respect thereof) brought by either against the
other on any matter arising out of or in any way connected with this Lease, the relationship of
Landlord and Tenant, or Tenant’s use or occupancy of the Premises.

     24.3 Attorneys’ Fees. If either party brings any legal action or proceeding, declaratory or
otherwise, arising out of this Lease, including any suit by Landlord to recover rent or possession
of the Premises or to otherwise enforce this Lease, the losing party shall pay the prevailing
party’s costs and attorneys’ fees and costs incurred in such proceeding. If Landlord issues
notice(s) to pay rent, notice(s) to perform covenant, notice(s) of abandonment, or comparable
documents as a result of Tenant’s default under this Lease, and if Tenant cures such default,
Tenant shall pay to Landlord the reasonable costs incurred by Landlord, including Landlord’s
attorneys’ fees and costs, of preparation and delivery of same.

     24.4 Authority of Tenant. Tenant represents and warrants that it has full power and authority
to execute and fully perform its obligations under this Lease pursuant to its governing
instruments, without the need for any further action, and that the person(s) executing this
Agreement on behalf of Tenant are the duly designated agents of Tenant and are authorized to do so.
Prior to execution of this Lease, Tenant shall supply Landlord with such evidence as Landlord may
request regarding the authority of Tenant to enter into this Lease. Any actual or constructive
taking of possession of the Premises by Tenant shall constitute a ratification of this Lease by
Tenant.

     24.5 Binding Effect. Subject to the provisions of Article 18 restricting transfers by Tenant
and subject to Section 24.27 regarding transfer of Landlord’s interest, all of the provisions of
this Lease shall bind and inure to the benefit of the parties hereto and their respective heirs,
legal representatives, successors and assigns.

     24.6 Brokers. Tenant warrants that it has had no dealings with any real estate broker or agent
in connection with the negotiation of this transaction other than those described in the Basic
Lease Provisions (if any), and it knows of no other real estate broker or agent who is entitled to
a commission in connection with this transaction. Tenant agrees to indemnify, defend and hold
Landlord harmless from and against any obligation or liability to pay any commission or
compensation to any other party arising from the act or agreement of Tenant. Tenant’s Broker
(identified in Section 1.11) shall receive a commission of four percent (4%) based upon the Minimum
Monthly Rent. Such commission shall be payable by Landlord as follows: fifty percent (50%) to be
paid upon full execution of this Lease and fifty-percent (50%) to be paid on the Commencement Date.

     24.7 Construction. The headings and captions used in this Lease are for convenience only and
are not a part of the terms and provisions of this Lease. In any provision relating to the conduct,
acts or omissions of Tenant, the term “Tenant” shall include Tenant, its subtenants and assigns and
their respective agents, employees, contractors, and invitees, and any others using the Premises
with Tenant’s express or implied permission. Any use in this Lease, or in any addendum, amendment
or other document related hereto, of the terms “lessor” or “lessee” to refer to a party to this
Lease shall be deemed to be references to Landlord and Tenant, respectively.

     24.8 Counterparts. This Lease may be executed in multiple copies, each of which shall be
deemed an original, but all of which shall constitute one Lease binding on all parties after all
parties have signed such a counterpart.

     24.9 Covenants and Conditions. Each provision to be performed by Tenant shall be deemed to be
both a covenant and a condition.

     24.10 Entire Agreement. 
This Lease, together with all exhibits and addenda, if any, attached
hereto, constitutes the entire agreement between the parties with respect to the subject matter
hereof. There are no oral or written agreements or representations between the parties hereto
affecting this Lease, and this Lease supersedes, cancels, and merges any and all previous verbal or
written negotiations, arrangements, representations, brochures, displays, models, photographs,
renderings, floor plans, elevations, projections, estimates, agreements and understandings if any,
made by or between Landlord and Tenant and their agents, with respect to the subject matter, and
none thereof shall be used to interpret, construe, supplement or contradict this Lease. This Lease,
and all amendments thereto, is and shall be considered to be the only agreement between the parties
hereto and their representatives and agents. There are no other representations or warranties
between the parties, and all reliance with respect to representations is solely based upon the
representations and agreements contained in this Lease.

     24.11 Exhibits. All exhibits, addenda and riders attached or referred to herein are hereby
incorporated herein by reference.

     24.12 Financial Statements. Within ten (10) days after written request from Landlord, Tenant
shall deliver to Landlord such financial statements as are reasonably requested by Landlord to
verify the financial condition of Tenant, or any assignee, subtenant, or guarantor of Tenant. In
addition, Tenant shall deliver to any proposed or actual lender or purchaser of the Premises
designated by Landlord any financial statements required by such party to facilitate the sale,
financing or refinancing of the Premises, including the past three (3) years’ financial statements.
Tenant represents and warrants to Landlord that: (a) each such financial statement is a true and
accurate statement as of the date of such statement; and (b) at all times during the Lease term or
any extension thereof, Tenant’s net worth shall not be reduced below Tenant’s net worth as of the
date of execution of this Lease. Tenant agrees to provide audited financial statements to Landlord
or to any proposed or actual lender or purchaser of the Premises designated by Landlord to the
extent they are available. If audited financial statements are unavailable, Tenant shall provide
financial statements signed by Tenant’s accountant or an officer of Tenant warranting the veracity
of the contents of the statements. Landlord shall take reasonable precautions to protect the
confidentiality of such financial statements. Tenant hereby irrevocably authorizes Landlord to
conduct credit checks and other investigations into Tenant’s financial affairs.

14

 

     24.13 Force Majeure.
If Landlord is delayed in performing any of its obligations hereunder due
to strikes; labor problems; inability to procure utilities; materials; equipment or transportation;
governmental regulations; weather conditions; riots, insurrection, or war; or other events beyond
Landlord’s control; then the time for performance of such obligation shall be extended to the
extent reasonably necessary as a result of such event.

     24.14 Governing Law.
This Lease shall be governed, construed and enforced in accordance with
the laws of the State of California. Unless otherwise agreed by the parties, should either party
institute legal action to enforce any obligation contained in this Lease, it is agreed that the
proper venue of such suit or action shall be in the Superior Court of California, San Diego County.

     24.15 Joint and Several Liability. If more than one person or entity executes this Lease as
Tenant, each of them is jointly and severally liable for all of the obligations of Tenant
hereunder.

     24.16 Modification. The provisions of this Lease may not be modified or amended, except by a
written instrument signed by all parties.

     24.17
Modification for Lender. If, in connection with (a) Landlord obtaining financing or
refinancing for the Premises or the Center, Landlord’s lender requests reasonable modifications to
this Lease, or (b) Tenant obtaining financing for its business, each party will not unreasonably
withhold or delay its consent thereto, provided that such modifications do not increase the
obligations of the other party hereunder or materially and adversely affect the other party’s
rights hereunder.

     24.18 Nondiscrimination. Tenant for itself and its officers, directors, shareholders,
partners, principals, employees, agents, representatives, and other related entities and
individuals, agrees to comply fully with any and all laws and other requirements prohibiting
discrimination against any person or group of persons on account of race, color, religion, creed,
sex, marital status, sexual orientation, national origin, ancestry, age, physical handicap or
medical condition, in the use occupancy or patronage of the Premises and/or of Tenant’s business.
Tenant shall indemnify, defend and hold Landlord and Landlord’s officers, directors, shareholders,
partners, principals, employees and agents, and their respective successors and assigns, harmless
from and against all damage and liability incurred by Landlord in the event of any violation of the
foregoing covenant or because of any event of or practice of discrimination against any such
persons or group of persons by Tenant or its officers, directors, shareholders, partners,
principals, employees, agents, representatives, and other related entities and individuals in
accordance with the indemnification provisions of Article 13.

     24.19 Notice. Any and all notices to either party shall be personally delivered or sent by
regular mail, postage prepaid, addressed to the party to be notified at the address specified in
Section 1.1, or at such other address as such party may from time to time designate in writing.
Notice shall be deemed delivered on the date of personal delivery or three (3) business days after
deposit in the U.S. Mail, certified, return receipt requested.

     24.20 Partial Invalidity. If any provision of this Lease is determined by a court of competent
jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected
thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law.

     24.21 Quiet Enjoyment. Provided that Tenant has fulfilled its obligations to pay rent and
perform all other terms, covenants and conditions on its part to be performed under this Lease,
Landlord agrees that Tenant may quietly have, hold and enjoy the Premises from and after Landlord’s
delivery of the Premises to Tenant and until the end of the Lease Term; subject, however, to the
lien and provisions of any mortgage or deed of trust to which this Lease is or becomes subordinate.

     24.22 Recording. Tenant shall not record this Lease or any memorandum hereof without
Landlord’s prior written consent. As a condition of providing its consent, Landlord, in its sole
discretion, may require that Tenant execute a release or other applicable documentation to be
recorded at the expiration of the Lease Term to reflect the termination of Tenant’s tenancy of the
Premises.

     24.23 Relationship of the Parties. Nothing contained in this Lease shall be deemed or
construed as creating a partnership, joint venture, principal-agent, or employer-employee
relationship between Landlord and any other person or entity (including, without limitation,
Tenant) or as causing Landlord to be responsible in any way for the debts or obligations of such
other person or entity.

     24.24 Relocation of Tenant. Intentionally Omitted.

     24.25 Rights of Redemption Waived. Tenant hereby expressly waives any and all rights of
redemption under any present or future laws in the event Tenant is evicted or dispossessed for any
cause, or in the event Landlord obtains possession of the Premises by reason of Tenant’s violation
of any of the covenants and conditions of this Lease or otherwise.

     24.26 Time of Essence. Time is of the essence of each and every provision of this Lease.

     24.27 Transfer of Landlord’s Interest. In the event of a sale, assignment, exchange or other
disposition of Landlord’s interest in the Premises, other than a transfer for security purposes
only, Landlord shall be relieved of all obligations and liabilities accruing hereunder after the
effective date of said sale, assignment, exchange or other disposition, provided that any Security
Deposit or other funds then held by Landlord in which Tenant has an interest are delivered to
Landlord’s successor. The obligations to be performed by Landlord hereunder shall be binding on
Landlord’s successors and assigns only during their respective periods of ownership.

     24.28 Waiver. No provision of this Lease or the breach thereof shall be deemed waived, except
by written consent of the party against whom the waiver is claimed. A waiver of any such breach
shall not be deemed a waiver of any preceding or succeeding breach of the same or any other
provision. No delay or omission by either party in exercising any of its remedies shall impair or
be construed as a waiver thereof, unless such waiver is expressly set forth in a written instrument
signed by the party against whom the waiver is asserted. The subsequent acceptance of rent
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant, other
than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such rent.

	 	 	 	THE SUBMISSION OF THIS LEASE FOR EXAMINATION
AND/OR SIGNATURE BY TENANT IS NOT A COMMITMENT BY
LANDLORD OR ITS AGENTS TO RESERVE THE PREMISES OR
TO LEASE THE PREMISES TO TENANT. THIS LEASE SHALL
BECOME EFFECTIVE AND LEGALLY BINDING ONLY UPON
FULL EXECUTION AND DELIVERY BY BOTH LANDLORD AND
TENANT. UNTIL LANDLORD DELIVERS A FULLY EXECUTED
COUNTERPART HEREOF TO TENANT, LANDLORD HAS THE
RIGHT TO OFFER AND TO LEASE THE PREMISES TO ANY
OTHER PERSON TO THE EXCLUSION OF TENANT.

15

 

Signatures Continue on Following Page

EXECUTED, by Landlord and Tenant as of the date first written above.

LANDLORD:

	 	 	 	 	 
	CREST PARTNERS-POWAY ONE DANIELSON, LLC, a California limited liability company

 
	By:  	[ILLEGIBLE]
 	 
	Its:  	 

	 
	 
	By:  	[ILLEGIBLE]
 	 

TENANT:

	 	 	 	 	 
	NEXUS BIOSYSTEMS, INC., a California limited liability company

 
	By:  	[ILLEGIBLE]	 
	Its:  	V.P. Operations	 
	 	 	 
	By:  	 	 
	Its:  	 	 
	 

Federal Tax ID #: 20-3347265

16

 

EXHIBIT “A”

FLOOR PLAN OF PREMISES;

DESCRIPTION OF CENTER

14100 DANIELSON STREET, POWAY, CA 92064;

 

EXHIBIT “A-1”

14100 DANIELSON STREET, POWAY, CA 92064;

LOCATION OF DEMISING WALL

 

EXHIBIT “B”

RULES AND REGULATIONS

The following Rules and Regulations shall apply to the Center. Tenant agrees to comply with the
same and to require its agents, employees, contractors, customers and invitees to comply with the
same. Landlord shall have the right from time to time to amend or supplement these Rules and
Regulations, and Tenant agrees to comply, and to require its agents, employees, contractors,
customers and invitees to comply, with such amended or supplemented Rules and Regulations, provided
that (a) notice of such amended or supplemental Rules and Regulations is given to Tenant, and (b)
such amended or supplemental Rules and Regulations apply uniformly to all tenants of the Center. If
Tenant or its subtenants, employees, agents, or invitees violate any of these Rules and
Regulations, resulting in any damage to the Center or increased costs of maintenance of the Center,
or causing Landlord to incur expenses to enforce the Rules and Regulations, Tenant shall pay all
such costs to Landlord. In the event of any conflict between the Lease and these or any amended or
supplemental Rules and Regulations, the provisions of the Lease shall control.

	1.	 	Tenant shall be responsible at its sole cost for the removal of all of Tenant’s refuse or
rubbish. All garbage and refuse shall be disposed of outside of the Premises, shall be placed
in the kind of container specified by Landlord, and shall be prepared for collection in the
manner and at the times and places specified by Landlord. If Landlord provides or designates a
service for picking up refuse and garbage, Tenant shall use the same at Tenant’s sole cost.
Tenant shall not burn any trash or garbage of any kind in or about the Premises. If Landlord
supplies janitorial services to the Premises, Tenant shall not, without Landlord’s prior
written consent, employ any person or persons other than Landlord’s janitorial service to
clean the Premises.
	 
	2.	 	No aerial, satellite dish, transceiver, or other electronic communication equipment shall be
erected on the roof or exterior walls of the Premises, or in any other part of the Center,
without Landlord’s prior written consent. Any aerial, satellite dish, transceiver, or other
electronic communication equipment so installed without Landlord’s prior written consent shall
be subject to removal by Landlord without notice at any time and without liability to
Landlord.
	 
	3.	 	No loudspeakers, televisions, phonographs, radios, or other devices shall be used in a manner
so as to be heard or seen outside of the Premises without Landlord’s prior written consent.
Tenant shall conduct its business in a quiet and orderly manner so as not to create
unnecessary or unreasonable noise. Tenant shall not cause or permit any obnoxious or foul
odors that disturb the public or other occupants of the Center. If Tenant operates any
machinery or mechanical equipment that causes noise or vibration that is transmitted to the
structure of the Building, or to other parts of the Center, to such a degree as to be
objectionable to Landlord or to any other occupant of the Center, Tenant shall install and
maintain, at Tenant’s expense, such vibration eliminators or other devices sufficient to
eliminate the objectionable noise or vibration.
	 
	4.	 	Tenant shall keep the outside areas immediately adjoining the Premises clean and free from
dirt, rubbish, pallets and other debris to the satisfaction of Landlord. If Tenant fails to
cause such outside areas to be maintained as required within twelve (12) hours after verbal
notice that the same do not so comply, Tenant shall pay a fee equal to the greater of Fifty
Dollars ($50.00) or the costs incurred by Landlord to clean up such outside areas.
	 
	5.	 	Tenant shall not store any merchandise, inventory, equipment, supplies, finished or
semi-finished products, raw materials, or other articles of any nature outside the Premises
(or the building constructed thereon if the Premises includes any outside areas) without
Landlord’s prior written consent.
	 
	6.	 	Tenant and Tenant’s subtenants, employees, agents, or invitees shall park only the number of
cars allowed under the Lease and only in those portions of the parking area designated for
that purpose by Landlord. Upon request by Landlord, Tenant shall provide the license plate
numbers of the cars of Tenant and Tenant’s employees in order to facilitate enforcement of
this regulation. Tenant and Tenant’s employees shall not store vehicles or equipment in the
parking areas, or park in such a manner as to block any of the accessways serving the Center
and its occupants.
	 
	7.	 	The Premises shall not be used for lodging, sleeping, cooking, or for any immoral or illegal
purposes, or for any purpose that will damage the Premises or the reputation thereof. Landlord
reserves the right to expel from the Center any person who is intoxicated or under the
influence of liquor or drugs or who shall act in violation of any of these Rules and
Regulations. Tenant shall not conduct or permit any sale by auction on the Premises. No video,
pinball, or similar electronic game machines of any description shall be installed, maintained
or operated upon the Premises without the prior written consent of Landlord.
	 
	8.	 	Neither Tenant nor Tenant’s employees or agents shall disturb, solicit, or canvas any
occupant of the Center, and Tenant shall take reasonable steps to discourage others from doing
the same.
	 
	9.	 	Tenant shall not keep in, or allow to be brought into, the Premises or Center any pet, bird
or other animal, other than “seeing-eye” dogs or other animals under the control of and
specifically assisting any disabled person.
	 
	10.	 	The plumbing facilities shall not be used for any other purpose than that for which they are
constructed, and no foreign substance of any kind shall be disposed of therein. The expense of
any breakage, stoppage, or damage resulting from a violation of this provision shall be borne
by Tenant. Tenant shall not waste or use any excessive or unusual amount of water.
	 
	11.	 	Tenant shall use, at Tenant’s cost, such pest extermination contractor as Landlord may direct
and at such intervals as Landlord may require.
	 
	12.	 	Tenant will protect the carpeting from undue wear by providing carpet protectors under chairs
with casters, and by providing protective covering in carpeted areas where spillage or
excessive wear may occur.
	 
	13.	 	Tenant shall be responsible for repair of any damage caused by the moving of freight,
furniture or other objects into, within, or out of the Premises or the Center. No heavy
objects (such as safes, furniture, equipment, freight, etc.) shall be placed upon any floor
without Landlord’s prior written approval as to the adequacy of the allowable floor loading at
the point where the objects are intended to be moved or stored. Landlord may specify the time
of moving to minimize any inconvenience to other occupants of the Center. If the Building is
equipped with a freight elevator, all deliveries to and from the Premises shall be made using
the freight elevator during the time periods specified by Landlord, subject to such reasonable
scheduling as Landlord in its discretion shall deem appropriate.
	 
	14.	 	The sash doors, sashes, windows, glass doors, lights and skylights that reflect or admit
light into the building shall not be covered or obstructed. Landlord shall have the right to
specify the type of window coverings that may be installed, at Tenant’s expense. Tenant shall
not mark, drive nails, screw or drill into, paint, or in any way deface any surface or part of
the building. Notwithstanding the foregoing, Tenant may hang pictures, blackboards, or similar

 

	 	 	objects, provided Tenant repairs and repaints any nail or screw holes, and otherwise returns
the premises to the condition required under the Lease and the expiration or earlier
termination of the Lease Term. The expense of repairing any breakage, stoppage, or damage resulting
from a violation of this rule shall be borne by
Tenant. Tenant shall not be entitled to install any exterior window coverings without
Landlord’s prior written approval.
	 
	15.	 	Tenant shall be required to comply with all legal requirements and obtain any necessary
permits in accordance with Section 15.2 of this Lease for any and all electrical work
performed by Tenant at the Premises. Tenant shall be required to obtain Landlord’s prior
written consent for any electrical work to the Premises over Five Thousand Dollars ($5,000).
	 
	16.	 	If Tenant’s use of the Premises involves the sale and/or preparation of food, Tenant shall at
all times maintain a health department rating of “A” (or such other highest health department
or similar rating as is available). Any failure by Tenant to maintain such “A” rating twice in
any twelve (12) month period shall, at the election of Landlord, constitute a noncurable Event
of Default under the Lease.
	 
	17.	 	Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency.
	 
	18.	 	Tenant assumes any and all responsibility for protecting its Premises from theft, robbery and
pilferage, which includes keeping doors locked and other means of entry to the Premises
closed.
	 
	19.	 	If Tenant occupies any air-conditioned space, Tenant shall keep entry doors opening onto
corridors, lobby or courtyard closed at all times. All truck and loading doors shall be closed
at all times when not in use.
	 
	20.	 	Tenant shall not paint any floor of the Premises without Landlord’s prior written consent.
Prior to surrendering the Premises upon expiration or termination of the Lease, Tenant shall
remove any paint or sealer therefrom (whether or not previously permitted by Landlord) and
restore the floor to its original condition as of the Commencement Date, reasonable wear and
tear excepted. Tenant shall not affix any floor covering to the floor of the Premises in any
manner except as approved by Landlord.

	 	 	 	 	 
	 	 	 
	 	 	[ILLEGIBLE]
 	 
	 	 	Tenant’s Initials 	 
	 	 	 	 

 

EXHIBIT “C”

SIGN CRITERIA

All proposed signs must be submitted to the Property Manager for approval prior to installation.
For information regarding the signage, please contact:

Jelita Mayville

Property Manager 

Asset Management Group 

11750 Sorrento Valley Road 

San Diego, CA 92121 

(858) 481-7767

	 	 	 	 	 
	 	 	 
	 	 	[ILLEGIBLE]
 	 
	 	 	Tenant’s Initials 	 
	 	 	 	 
	 

 

ADDENDUM TO STANDARD INDUSTRIAL LEASE

(NEXUS Biosystems, Inc., a Delaware corporation)

     This Addendum to Standard Industrial Lease (the “Addendum”) is attached to and forms a part of
that certain Standard Industrial Lease (the “Lease”), dated for reference purposes only as of May
31, 2010, and entered into by and between Crest Partners-Poway One Danielson, LLC, a
California limited liability company (“Landlord”), and NEXUS Biosystems, Inc., a Delaware
corporation (“Tenant”),

     In the event of any conflict between this Addendum and the Lease, the terms and provisions of
this Addendum shall control. Except as specifically amended below, all terms and provisions of the
Lease shall remain in full force and effect.

25. Minimum Monthly Rent.
The Minimum Monthly Rent shall be $43,936.10, per month, for the
first Lease Year (i.e., from August 1, 2010, through July 31, 2011). Thereafter, the Minimum
Monthly Rent shall be increased on the first day of the second Lease Year and each Lease Year
thereafter, by a fixed three percent (3%), per annum. Tenant shall only be required to pay one-half
(1/2) of the Minimum Monthly Rent for the Premises during the 13
th,
18th,
25th,
37th, and
49th
months of the Lease Term. Tenant shall be required to pay all other monetary obligations for the
Premises, in full, during the foregoing months, including without limitation, Tenant’s pro rata
share of Operating Costs, Real Property Taxes, and insurance charges. The Minimum Monthly Rent for
the Premises during the Lease Term shall be as follows:

	 	 	 
	First Lease Year:
	 	 
	 
	 	 
	August 1, 2010—July 31, 2011:
	 	$43,936.10, per month
	 
	 	 
	Second Lease Year:
	 	 
	 
	 	 
	August 1, 2011 — August 31, 2011:
	 	$22,627.09
	September 1, 2011 — December 31, 2011:
	 	$45,254.18, per month
	January 1, 2012—January 31, 2012:
	 	$22,627.09
	February 1, 2012—July 31, 2012:
	 	$45,254.18, per month
	 
	 	 
	Third Lease Year:
	 	 
	 
	 	 
	August 1, 2012—August 31, 2012:
	 	$23,305.90
	September 1, 2012 — July 31, 2013:
	 	$46,611.80, per month
	 
	 	 
	Fourth Lease Year:
	 	 
	 
	 	 
	August 1, 2013 — August 31, 2013:
	 	$24,005.08
	September 1, 2013 — July 31, 2014:
	 	$48,010.16, per month
	 
	 	 
	Fifth Lease Year:
	 	 
	 
	 	 
	August 1, 2014 —August 31, 2014:
	 	$24,725.23
	September 1, 2014 — July 31, 2015:
	 	$49,450.47, per month

26. Use of Premises Prior to Commencement Date.

     26.1 Satisfaction of Conditions.

     The Lease provides for Tenant to lease the Premises, consisting of approximately 67,594
Rentable Square Feet in the western portion of the Building, beginning on the Commencement Date
(i.e., August 1, 2010). Provided that certain conditions have been satisfied (as hereinafter
stated), Tenant shall be entitled to use the Premises for storage purposes and to set-up its
machinery and personal property prior to the Commencement Date, as specifically provided in Section
26.2 below. The conditions are as follows: (1) the Lease must be fully executed by Landlord and
Tenant, (2) Tenant must pay Landlord the Security Deposit specified in Section 1.6 of the Lease,
(3) Tenant must provide Landlord with proof of insurance per the terms and conditions
specified in Section 9, and (4) Tenant must pre-pay $27,600.00 (the “Move-In Sum”) for its use
of the Premises from June 1, 2010, through July 31, 2010, as itemized in Sections 26.2.1 below
(collectively, the “Conditions”), provided however that if Tenant takes possession of the Premises
after June 1, 2010, the pro rated portion of the Move-In Sum for the period commencing June 1, 2010
up to the date Tenant takes possession of the Premises (which shall in no event be later than the
Commencement Date), shall be applied as a

1

 

partial credit to Minimum Monthly Rent due for August
2010. Tenant shall not be entitled to take possession of the Premises, or any part thereof, unless
and until the Conditions have been fully satisfied.

     26.2 Storage Use.

     June 1, 2010 — July 31, 2010:

     26.2.2 Provided that the Conditions have been satisfied in full, Tenant
shall be entitled to use 20,000 Rentable Square Feet within the Premises
for storage and moving/set-up purposes, from June 1, 2010, through and
including July 31, 2010. Tenant shall use the space in its as-is
condition in accordance with Section 12 of the Lease. Landlord shall have
no responsibility to improve, repair, or otherwise modify the space for
Tenant in any manner whatsoever. Except as provided herein, Tenant’s use
of the space shall be subject to all terms and conditions of the Lease.
Upon full execution of this Lease. Tenant shall pay Minimum Monthly Rent
and its share of Operating Costs, Real Property Taxes, and insurance
charges for the 20,000 RSF for June and July 2010, in the aggregate
amount of $27,600 (i.e., $0.69/RSF x 20,000 RSF x 2 mos.). Payment shall
be made by Tenant per the terms and conditions stated in the Lease. While
Tenant is paying to use a portion of the Premises, from June 1, 2010,
through July 31, 2010, as provided in Sections 26.2.1 of this Addendum,
Tenant shall be entitled to use the remaining Premises during that
timeframe (at no charge to Tenant) to facilitate the move-in process.
Commencing on August 1, 2010, Tenant shall be entitled to use the entire
Premises for its business operations, in accordance with the terms and
conditions of the Lease.

27. “As-Is, Where-Is” Condition. Pursuant to Section 12 of the
Lease, Tenant shall take possession of the Premises in its current,
“as-is, where-is” condition. Landlord makes no representations or
warranties regarding the condition or state of the Premises.
Notwithstanding the foregoing, in the event that Tenant provides written
notice to Landlord of any material defect in the Building and Building
Systems (including all base mechanical, electrical, plumbing, and HVAC
systems) prior to September 1, 2010, Landlord shall repair the same at
Landlord’s cost and expense. Any additional maintenance and repairs shall
be governed by Article 7 of the Lease. By taking possession of the
Premises, Tenant shall be deemed to have fully accepted the condition and
state of the Premises in accordance with Section 12 of the Lease. All
current amenities and improvements located within the Premises
(including, without limitation, any office build-outs, furniture, power
distribution, warehouse racking, and inventory cages) shall remain within
the Premises, unless otherwise provided in any tenant improvement plans
submitted by Tenant in accordance with Article 15 of the Lease. As
indicated in Section 1.2 of the Lease, the Premises will be separated
from the eastern portion of the Building by a demising wall Landlord
shall keep the existing demising wall in the back area of the Building
and shall construct the remaining portion of the demising wall at the
location indicated in Exhibit “A-1.” Landlord shall construct the
remaining portion of the demising wall, at its sole expense, prior to the
Commencement Date of the Lease. Landlord agrees to provide separately
metered utilities for the Premises, at Landlord’s sole cost, as part of
the demising wall installation.

28. Tenant Improvements. Landlord shall provide Tenant with an
allowance, up to a maximum of One Hundred Thousand Dollars ($100,000,00),
to pay for improvement costs to the Premises (“Tenant Improvement
Allowance”). Tenant shall be required to comply with the terms and
provisions of Article 15 of the Lease in making any such improvements.
Prior to the commencement of any improvements by Tenant, at Landlord’s
election, Landlord and Tenant shall negotiate a work letter agreement in
good faith to define the manner, method, and scope of completing the
proposed improvements and the parties’ responsibilities during the
improvement process. Landlord shall reimburse Tenant for Tenant’s
improvement costs within thirty (30) days of the following terms and
conditions being satisfied: (1) Landlord has inspected and approved the
improvements made by Tenant, (2) Tenant has provided copies of invoices
and proof of payment of the improvements to Landlord, and (3) Tenant has
provided Landlord with unconditional lien releases, if applicable. In the
event that the actual costs of completing such improvements are less than
the Tenant Improvement Allowance, Tenant shall only be entitled to that
portion of the Tenant Improvement Allowance required for the improvement
costs. The Tenant Improvement Allowance shall only be used for the
completion of any necessary improvements and cabling. In no event shall
such amounts be applied toward any of Tenant’s furniture, fixtures,
furnishings, personal property, signs, or any monetary obligations of
Tenant under the Lease. The cost of any and all improvements in excess of
the Tenant Improvement Allowance shall be Tenant’s sole responsibility.

2

 

29. Option to Extend.

     29.1 Conditions for Exercising Option.

     Provided that there has never been an un-cured default under the
Lease by Tenant (monetary or otherwise) (as discussed below), Tenant
shall have the option to extend the term of the Lease (the “Option to
Extend”) for one (1) additional period of five (5) years, commencing on
the day after the Expiration Date (the “Option Term”), upon all of the
terms and conditions of this Lease, other than the Minimum Monthly Rent,
which shall be determined as described below. The Option to Extend must
be exercised, if at all, by Tenant giving Landlord written notice of the
exercise thereof (in accordance with Section 24.19 of the Lease) no more
than twelve (12) months and no less than nine (9) months prior to the
expiration of the Lease Term. Any failure of Tenant to give due notice
of its exercise of the Option to Extend
within the required time shall constitute an irrevocable election
on the part of Tenant not to exercise the Option to Extend, and this
Lease shall expire at the end of the Lease Term. Tenant shall have no
other right to extend the Lease Term beyond the Option Term described
herein. Notwithstanding anything set forth herein to the contrary, if on
the date of giving the notice or the date the Option Term is to
commence, there exists any Event of Default (monetary or non-monetary) on
the part of Tenant under this Lease, Tenant’s notice shall be deemed
ineffective, the Option Term shall not commence and this Lease shall
expire as scheduled. In addition, any due exercise of Tenant’s Option to
Extend hereunder shall be voidable by Landlord if, at any time prior to
such exercise or prior to the date the Option Term is to commence,
Landlord had given a notice of default to Tenant under Section 21 of the
Lease and Tenant thereafter failed to cure such default within the
applicable cure period (regardless of whether such cure period expires
before or after the commencement of the Option Term). Tenant’s right to
exercise the Option to Extend shall be subject to Landlord’s review and
approval of Tenant’s financial statements at the time that Tenant
provides notice of its intent to exercise such right.

     29.2 Minimum Monthly Rent.

     The Minimum Monthly Rent during the first year of the Option Term
shall be the “Fair Market Rental Value” of the Premises, as defined
below; provided, however, that the “Fair Market Rental Value” shall be
no more than $1.25/RSF plus Tenant’s share of Operating Costs, Real
Property Taxes, and insurance charges. There shall be no cap on the Real
Property Taxes upon commencement of the Option Term.

     Upon exercise of the Option to Extend, Landlord and Tenant shall, in
good faith, attempt to reach a mutually acceptable Fair Market Rental
Value of the Premises and consequent Minimum Monthly Rent for the Option
Term. If Landlord and Tenant cannot agree upon the Fair Market Rental
Value within thirty (30) business days of Tenant’s exercise of the Option
to Extend, then within ten (10) days thereafter, Landlord and Tenant
shall each select and notify the other of the name of an “Evaluator,”
who, for purposes of this Section, shall be an independent and impartial
real estate professional (such as a licensed real estate agent) having
more than ten (10) years’ experience in the leasing of space comparable
to the Premises. If either party shall fail to appoint an Evaluator, the
Evaluator appointed by the other party shall solely determine the Fair
Market Value of the Premises. Each Evaluator shall promptly proceed to
select a third Evaluator, who shall have the aforesaid qualifications of
an Evaluator. Such third Evaluator shall determine the Fair Market Rental
Value of the Premises and shall deliver to both Landlord and Tenant a
copy of such determination within thirty (30) days after his or her
appointment as the third Evaluator. The parties agree that the third
Evaluator’s determination as aforesaid shall be considered as the Fair
Market Rental Value of the Premises and shall be conclusive and binding
upon Landlord and Tenant. If the original two Evaluators shall fail to
agree upon the selection of a third Evaluator, the same shall be
designated by the president of the San Diego Board of Realtors, or any
successor organization thereto. Landlord and Tenant shall each pay any
fees of their own Evaluator and shall share equally the fees of the third
Evaluator, if any.

As used herein, the term “Fair Market Rental Value” shall mean the rent
for buildings of similar type, quality and size in the City of Poway that
a willing comparable tenant would pay to a willing landlord, neither of
whom is compelled to rent, at arms length, on all of the terms and
conditions of the Lease (other than the Minimum Monthly Rent, which is to
be determined pursuant to this Section). In determining the Fair Market
Rental Value, it shall be assumed that Landlord has fully paid any and
all leasing costs (including without limitation tenant improvement costs,
leasing commissions and tenant concessions), that might be prevalent in
the marketplace. The determination of Fair Market Rental Value shall also
include any appropriate adjustments over the term of the Option Term in
the Minimum Monthly Rent based on the cost of living or otherwise, and
without regard to any leasing costs such as tenant improvement costs,
leasing commissions and tenant concessions, that might be prevalent in
the marketplace.

3

 

30. Right of First Offer. Tenant shall have the right to send
Landlord a notice (“Request Notice”) advising Landlord that Tenant is
interested in possibly leasing additional space within the eastern
portion of the Building. Within ten (10) days of receipt of a Request
Notice, Landlord shall promptly notify Tenant of when and what space is
or will be so available within the next six (6) months (“Advice Space”).
Tenant shall thereupon have the right to make an offer to lease all or
any part of such Advice Space (“ROFO”), unless: (1) Tenant is in default
under the terms of this Lease; or (2) the Advice Space is not in a
rentable configuration. Tenant shall exercise its ROFO by notifying
Landlord, within ten (10) days after Tenant’s receipt of the notice of
availability of the Advice Space, of its desire to lease certain Advice
Space within the Building. Thereafter, Landlord and Tenant shall
negotiate the terms of a separate lease of the Advice Space, in good
faith. If Landlord and Tenant reach mutually agreeable terms for a lease
of the Advice Space, the offer to lease on such terms shall be subject
to any senior rights of first offer or rights of first refusal in such
Advice Space. If Landlord and Tenant cannot reach an agreement on terms,
then Landlord may freely negotiate with or lease the Advice Space to any
other party.

31. Operating Costs. “Operating Costs” shall not include the
following:

          i. Any expenses as to which Landlord is otherwise reimbursed by any
third party, other tenant (except by way of operating expense
pass-throughs), or by insurance
proceeds;

          ii.
Corporate Overhead – Except for allowable management fees, all
costs
associated with the operation of the business of the entity which
constitutes “Landlord” or
“Landlord’s managing agent” (as distinguished from the costs of the
operations of the
Building/Center) including, but not limited to, Landlord’s or
Landlord’s managing agent’s general
corporate overhead and general administrative, risk management, and
corporate and/or
partnership accounting and legal costs, mortgages, debt costs or
other financing charges, asset
management fees, administrative fees, any costs that would normally
be considered included in
a management fee (e.g., property accounting charges, local area
network (“LAN”) and wide
area network (“WAN”) charges, travel expenses for company meetings
or training, etc.),
placement/recruiting fees/costs for employees whether they are
assigned to the Building/Center
or not, employee training programs, real estate licenses and other
industry certifications,
health/sports club dues, employee parking and transportation
charges, tickets to special events,
costs of any business licenses regardless if such costs are
considered a form of Real Property
Tax, costs of defending any lawsuits, costs (including legal fees)
of selling, syndicating,
financing, mortgaging or hypothecating any of Landlord’s interests
in the Building/Center, bad
debt loss, rent loss or any reserves thereof, and costs (including
legal fees) incurred in
connection with any disputes between Landlord and/or Landlord’s
management agent and their
employees, tenants or occupants, and providers of goods and services
to the Building/Center;

          iii.
Leasing – Any cost relating to the marketing, solicitation,
negotiation and
execution of leases of space in the Building/Center, including
without limitation, promotional and
advertising expenses, commissions, finders fees, and referral fees,
accounting, legal and other
professional fees and expenses relating to the negotiation and
preparation of any lease, license,
sublease or other such document, costs of design, plans, permits,
licenses, inspection, utilities,
construction and clean up of tenant improvements to the Premises or
the premises of other
tenants or other occupants, the amount of any allowances or credits
paid to or granted to
tenants or other occupants of any such design or construction, and
all other costs of alterations
of space in the Building/Center leased to or occupied by other
tenants or occupants;

          iv.
Executive / Unrelated – Wages, salaries, fees, fringe benefits,
and any
other form of compensation paid to any executive employee of
Landlord and/or Landlord’s
managing agent above the grade of Building Manager as such term is
commonly understood in
the property management industry, provided, however, all wages,
salaries and other
compensation otherwise allowed to be included in Operating Costs
shall also exclude any
portion of such costs related to any employee’s time devoted to
other efforts unrelated to the
maintenance and operation of the Building/Center;

          v.
Ground Lease – Any rental payments and related costs pursuant to
any
ground lease of land underlying all or any portion of the
Building/Center;

          vi.
Office and Parking Charges – Any office rental and any parking
charges,
either actual or not, for the Landlord’s and/or Landlord’s managing
agent’s management,
engineering, maintenance, security, parking or other vendor
personnel;

          vii.
Building Codes/ADA – Any cost incurred in connection with
upgrading the
Building/Center to comply with insurance requirements, life safety
codes, ordinances, statutes,
or other laws in effect prior to the Commencement Date, including
without limitation the

4

 

Americans With Disabilities Act (or similar laws, statutes, ordinances
or rules imposed by the State, County, City, or other agency where the
Building/Center is located), including penalties or damages incurred as
a result of non-compliance, but excluding any costs necessary to
remediate any noncompliance triggered by Tenant’s use and occupation of
the Premises;

          viii. Reimbursements — Any cost of any service or items sold or
provided to
tenants or other occupants to the extent that Landlord or Landlord’s
managing agent has been
reimbursed by such tenants or other occupants for such service or
has been reimbursed by
insurance or otherwise compensated by parties other than tenants of
the Building/Center
(except as recoupment of operating expenses), to include replacement
of any item covered by a
warranty to the extent of the warranty coverage;

          ix. Benefits to Others — Expenses in connection with services or other
benefits which are provided to another tenant or occupant of the
Building/Center and which do
not benefit Tenant, provided that Operating Costs incurred for the
maintenance and repair of
Common Facilities shall be deemed to benefit Tenant;

          x. Other Taxes — Landlord’s gross receipts taxes for the
Building/Center
(except to the extent that such taxes are a substitute for ad
valorem real property taxes),
personal and corporate income taxes, inheritance and estate taxes,
franchise and gift taxes,
and all other Real Property Taxes relating to a period payable or
assessed outside the term of
the Lease;

          xi. Special Assessment — Any new special assessments or special taxes
initiated as a means of financing improvements to the
Building/Center thereof which are levied
after the date of this Lease;

          xii. Advertising/Promotion/Gifts — All advertising and promotional costs
including any form of entertainment expenses, dining expenses, any
costs relating to tenant or
vendor relation programs including flowers, gifts, luncheons,
parties, and other social events but
excluding any cost associated with life safety information services;

          xiii. Fines & Penalties — Any fines, costs, late charges, liquidated
damages,
penalties, tax penalties or related interest charges, imposed on
Landlord or Landlord’s
managing agent, except to the extent that such fines and penalties
result from Tenant’s use or
occupancy of the Premises;

          xiv. Contributions/Dues/Subscriptions — Any costs, fees, dues,
contributions or
similar expenses for political, charitable, industry association or
similar organizations, as well as
the cost of any newspaper, magazine, trade or other subscriptions,
excepting the
Building’s/Center’s annual membership dues in the local Building
Owners and Managers
Association (“BOMA”);

          xv. Art — Costs, other than those incurred in ordinary maintenance
and repair,
for sculptures, paintings, fountains or other objects of art or the
display of such items;

          xvi. Concessionaires — Any compensation or benefits paid to or
provided to
clerks, attendants or other persons in commercial concessions
operated by or on behalf of the
Landlord;

          xvii. Other Insurance — Any increase in the cost of Landlord’s insurance
caused by a specific use of another tenant or by Landlord;

          xxvii. Reserves — Any reserves for capital improvements;

          xviii. Costs directly resulting from the gross negligence, willful
misconduct or
breach of law or ordinance by Landlord, its employees, agents,
contractors or employees; and

Signatures Continue on Following Page

5

 

EXECUTED, by Landlord and Tenant as of the date first written above

LANDLORD:

CREST PARTNERS-POWAY ONE DANIELSON, LLC, a California limited liability company

	 	 	 	 	 
	 	 	 
	 	By:  	[ILLEGIBLE]
 	 
	 	 	Title: [ILLEGIBLE] 	 
	 	 	 	 
	 	 	 
	 	By:  	[ILLEGIBLE]
 	 
	 	 	Title: V. P. 	 
	 	 	 	 
	 	TENANT:

NEXUS BIOSYSTEMS. INC., a Delaware corporation

 
	 	By:  	[ILLEGIBLE]
 	 
	 	 	Title: V.P. Operations	 
	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

6

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