Document:

EX-4.3

 Exhibit 4.3 
  

							
	Form:	  	07L	  	LEASE	  	Leave this space clear. Affix
	Licence:	  	01-05-028	  		  	additional
	Licensee:	  	Makinson & d’Apice	  	 New South Wales
 Real Property Act 1900
	  	pages to the top left-hand corner.
	PRIVACY NOTE: Section 31B of the Real Property Act 1900 (RP Act) authorises the Registrar General to collect the information required by this form for the establishment and
maintenance of the Real Property Act Register. Section 96B RP Act requires that the Register is made available to any person for search upon payment of a fee, if any.

  

															
		 	STAMP DUTY	  	Office of State Revenue use only	  		  	

	  	Office of State Revenue	  	
		 		  		  		  	  	NSW Treasury	  	
		 		  		  		  		  		  	Client No:    3323749	  	1755
		 		  		  		  		  		  	Duty: $5,906.60 Trans No: 3687674
		 		  		  		  		  		  	Asst details:                     	  	
			
	(A)	 	TORRENS	  	Property leased: if appropriate, specify the part or premises
		 	TITLE	  	Unit 2, 8 - 10 Rodborough Road, Frenchs Forest being PART of the land contained in Certificate of Title Folio Identifier 2/737438
					
	(B)	 	LODGED BY	  	Delivery	  	Name, Address or DX and Telephone	  	
		 		  	Box	  	LLPN:	  	Makinson & d’Apice	  	CODE
		 		  	557V	  		  	DX 296 SYDNEY	  	
		 		  		  		  	Tel: + 61 2 9233 7788	  	
		 		  		  	Reference (optional): GM:GM:60703	  	L
					
	(C)	 	LESSOR	  	TRUST COMPANY OF AUSTRALIA LIMITED ACN 004 027 749	  		  	
					
		 	The lessor leases to the lessee the property referred to above.	  		  		  	
				
	(D)	 		  	Encumbrances (if applicable):	  	
					
	(E)	 	LESSEE	  	PHARMAXIS LTD ACN 082 811 630	  		  	
								
	(F)	 		  	TENANCY:	  		  		  		  		  	
							
	(G)	 	 1.      TERM:
	  	Five (5) years	  		  		  		  	
							
		 	 2.      COMMENCING DATE:
	  	22 June 2006	  		  		  		  	
							
		 	 3.      TERMINATING DATE:
	  	21 June 2011	  		  		  		  	
		
		 	 4.      With an OPTION TO RENEW for a period of Five (5) years set out in Item/Clause 19 of
Annexure “A”.

			
		 	 5.      With an OPTION TO PURCHASE set out in Not Applicable
	  	
			
		 	 6.      Together with and reserving the RIGHTS set out in Annexure
“A”
	  	
			
		 	 7.      Incorporates the provisions set out in ANNEXURE(S) “A”
hereto.
	  	
		
		 	 8.      Incorporates the provisions set out in MEMORANDUM filed at Land and Property
Information New South Wales as No. Not Applicable

			
		 	 9.      The RENT is set out in item/clause 3 of the Schedule.
	  	

 All handwriting must be in block capitals. 
 Total Pages (office use only)              
  

 PAGE 1 OF 41 

 ANNEXURE “A” REFERRED TO IN THE LEASE BETWEEN TRUST COMPANY OF AUSTRALIA LIMITED (LESSOR) AND PHARMAXIS LTD
(LESSEE) 
 DATED 22 DAY OF August 2006 
  

	1.	EXCLUSION OF STATUTORY PROVISIONS 

 The Lessee shall take the
Premises subject to such of the covenants conditions and restrictions implied by Sections 84 and 85 of the Conveyancing Act 1919 as are not expressly negatived or modified. 
  

	2.	DEFINITIONS 

  

	2.1	In this Lease and any Rules and Regulations (unless the contrary intention appears); 

 “Lessor” means the Lessor referred to on the front page of this Lease and its successors and assigns (and where an individual the Lessor’s legal personal representatives). 
 “Lessee” means the Lessee referred to on the front page of this Lease and the successors and permitted assigns of the Lessee (and where an individual
the Lessee’s legal personal representatives) and where the context permits, the employees, invitees, licensees, contractors, subtenants and agents of the Lessee. 
 “Land” means the land so described in the Reference Schedule. 
 “Premises” means the
Premises described in Reference Schedule and the Lessor’s Property including the pipes and connections to all services and supplies from the point where they enter the Premises. 
 Where the Premises comprise the whole of a building or part, the boundaries of the Premises are: 
  

	(a)	the outside surface of perimeter walls (under any paint or wall covering) and the outside surface of any windows and access doors and shutters in them; 

  

	(b)	the lower surface of the ceiling (above any false or suspended ceiling); 

  

	(c)	the upper surface of the floor (under any floor covering); 

  

	(d)	the central line of partitions separating the Premises from other adjoining Premises; and 

  

	(e)	the external surface of partitions and doors separating the Premises from the Common Area. 

 “Building” means the building or buildings and other improvements erected or to be erected on the Land from time to time together with any extensions modifications or alterations. 
 “Common Area” means those parts of the Land or Building designated by the Lessor from time to time to be used for common use by the Lessee and other
occupants, their employees, customers, contractors, agents and the public. 
 “Lessor’s Property” means all plant, equipment, fixtures,
fittings, furniture, furnishings and other property of the Lessor provided in the Premises from time to time. 
  

 PAGE 2 OF 42 

 “the term” means the period from and including the commencement date of this lease up to and including
its termination date. 
 Interpretation 
  

	2.2	In this lease unless the contrary intention appears: 

  

	 	(a)	a reference in this lease to another instrument includes any variation or replacement of any of them; 

  

	 	(b)	a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of
them occurring at any time before or after the date of this lease; 

  

	 	(c)	the singular includes the plural and vice versa; 

  

	 	(d)	the word “person” includes a firm, a body corporate, an unincorporated association or an authority; 

  

	 	(e)	a reference to a person includes a reference to the persons, executors, administrators, successors, substitutes (including without limitation, persons taking by novation) and
assigns; 

  

	 	(f)	an agreement, representation or warranty in favour of two or more persons is for the benefit of them jointly and severally; 

  

	 	(g)	an agreement, representation or warranty on the part of two or more persons binds them jointly and severally; 

  

	 	(h)	a reference to “month” is to “calendar month”; and 

  

	 	(i)	a reference to “writing” includes any mode of representing and reproducing words in tangible and permanently visible form and includes telex and facsimile transmission.

  

	2.3	Headings are inserted for convenience and do not affect interpretation. 

  

	2.4	A provision of this lease which is void, voidable by any party unenforceable or illegal must be read down to the extent required to give the provision legal effect.

  

	2.5	This lease constitutes the entire agreement between the parties and supersedes all previous negotiations and agreements in relation to the transaction. 

  

	3.	RENT AND REVIEW OF RENT 

  

	3.1	During the term of this lease and any holding over, the Lessee must pay the rent specified in the Reference Schedule (as varied pursuant to Schedule 1) free of set-off, deduction or
counter claim: 

  

	 	(a)	to the Lessor at the Lessor’s address specified in this lease or as the Lessor directs (including by Bank Order); and 

  

	 	(b)	by equal monthly instalments in advance on the first day of each month from the commencement of this lease. 

  

 PAGE 3 OF 42 

	3.2	If the date of commencement of this lease is not the first day of a month, the Lessee must pay proportional instalments for the first and last months of the term.

  

	3.3	The rent may be reviewed by the Lessor in accordance with Schedule 1. 

  

	4.	OUTGOINGS AND SERVICES 

  

	4.1	The Lessee must pay Outgoings in accordance with Schedule 2 or reimburse the Lessor for any Outgoings the Lessor may pay. 

  

	4.2	The Lessee must pay charges when due for all services provided by the Lessor and by Authorities to the Premises including gas, electricity, water, air conditioning, garbage and
trade waste removal. 

  

	4.3	If the Lessor provides a cleaning service for the Premises, the Lessee must pay the monthly cleaning charge with the rent. 

  

	4.4	Unless otherwise agreed between the parties, the Lessee is not liable to pay charges for: 

  

	 	(a)	the connection of gas, electricity, water and sewerage services to the Premises; or 

  

	 	(b)	the installation of separate water and electricity meters for the Premises. 

  

	5.	DAMAGE TO PREMISES 

 If the Premises or the Building any part shall
at any time be damaged or destroyed so as to render the Premises or any part wholly or substantially unfit for the occupation and use of the Lessee or, (having regard to the nature and location of the Premises and the normal means of access) wholly
or substantially inaccessible, then and so often as the same shall happen: 
  

	5.1	except where such damage or destruction has been caused or contributed to or arises from any act or omission of the Lessee or the Lessee’s employees and agents or any policy or
policies of insurance effected by the Lessor in respect of loss or damage to the Building shall have been vitiated or payment of the policy moneys refused in consequence of some act or omission of the Lessee: 

  

	 	(a)	a proportionate part of the rent and the Lessee’s proportion of the Lessor’s Outgoings (if payable) according to the nature and extent of the damage sustained shall abate
and all or any remedies for recovery of such proportionate part of the rent and Lessee’s proportion of Lessor’s Outgoings falling due after such damage shall be suspended until the Premises have been restored or made fit for the occupation
and use of the Lessee (or accessible to the Lessee, as the case may be); 

  

	 	(b)	this Lease may be determined by written notice by either the Lessor or the Lessee without liability attaching to either party by reason of such determination PROVIDED THAT
the Lessee shall not be entitled to so determine this Lease if the Lessor within a period of 6 months after the occurrence of the destruction or damage shall have commenced to reinstate the Premises and make them fit for occupation and use of
the Lessee (or accessible to the Lessee, as the case may be); 

  

 PAGE 4 OF 42 

	 	(c)	if the Lessor commences to reinstate the Premises (or to make the Premises accessible as the case may be) and THEN does not, within a reasonable time (having regard to the
extent of the damage or destruction and the time expected to commence and carry out the necessary works), reinstate the Premises, or make them fit for the occupation and use of the Lessee, (or render them accessible as the case may be), the Lessee
may serve on the Lessor notice of intention to terminate this Lease, and, unless the Lessor shall upon receipt of that notice proceed with reasonable expedition and diligence to reinstate the Premises, or make them fit for such occupation and use,
(or render them accessible as the case may be), the Lessee may terminate this Lease by giving not less than one (1) month’s notice in writing to the Lessor, and at the expiration of the last mentioned notice, this Lease shall be at an end;

  

	5.2	if in the Lessor’s reasonable opinion such damage to the Building or the Premises is such that it is impractical or undesirable to reinstate the Premises, or make them fit for
the occupation and use of the Lessee (or render them accessible as the case may be), the Lessor may terminate this Lease by giving one (1) month’s notice in writing to the Lessee and at the expiration of that notice this Lease shall be at
an end; 

  

	5.3	no liability shall attach to the Lessor or the Lessee by reason of termination of this Lease pursuant to this clause but, any such termination shall be without prejudice to the
rights of either party in respect of any antecedent breach or non observance of this Lease; 

  

	5.4	any dispute arising under this clause shall be determined by a loss assessor being a member of the Insurance Council of Australia Limited (or succeeding body) appointed by the
President for the time being of the said Council. The person so appointed shall be an assessor having substantial experience in assessing buildings of a similar type within the appropriate area in which the Building is located or other comparable
area and shall in making his determination act as an expert and not as an arbitrator and his determination shall be final and binding on both parties. The cost of any such determination shall be borne by either or both of the parties (and if by both
of the parties in the proportion between them) as the person making the determination shall decide; and 

  

	5.5	nothing contained in this clause shall impose upon the Lessor any obligation to reinstate the Building or the Premises. 

  

	6.	USE AND SIGNAGE 

  

	6.1	The Lessee must use the Premises only for the use stated in the Reference Schedule. 

  

	6.2	The Lessee must not: 

  

	 	(a)	carry on any auction sale upon the Premises; 

  

	 	(b)	use or permit the Premises to be used as a shop or sleeping place; 

  

	 	(c)	carry on any noxious or offensive act trade business occupation or calling other than any act or thing reasonably necessary for, and incidental to, the use of the Premises permitted
by this lease; or 

  

	 	(d)	use the Premises in any noxious or offensive manner or do or permit to be done anything which in the reasonable opinion of the Lessor may be or 

  

 PAGE 5 OF 42 

 become a nuisance disturbance or cause of damage to the Lessor or other occupiers of the Land or
adjoining Premises other than any act or thing reasonably necessary for, and incidental to, the use of the Premises permitted by this lease. 
  

	6.3	The Lessee will not paint affix or place upon any part of the Premises any sign, name, notice or other device or advertisement without the prior written consent of the Lessor (which
shall not be unreasonably withheld where such signs are in keeping with the standards in a Building relating to signage and the consent of any Authorities is obtained). 

  

	6.4	Deleted. 

  

	7.	REPAIRS, MAINTENANCE AND COMPLIANCE WITH LAWS 

  

	7.1	The Lessee must: 

  

	 	(a)	keep and maintain the Premises (including any vehicular access doors) in the same condition and state of repair as they were at the commencement of this lease (or any earlier lease
if this lease is granted pursuant to an option) except for fair wear and tear. The Lessor and the Lessee may agree on a condition report of the Premises as at the commencement of this lease; 

  

	 	(b)	repair or replace all plate glass damaged or broken by the Lessee; 

  

	 	(c)	repair or replace all defective heating, lighting and electrical equipment and plumbing installed in the Premises including light globes, tubes, switches and power points;

  

	 	(d)	keep and maintain the waste pipes drains and conduits contained in the Premises in a clean clear and free flowing condition and at its own expense employ licensed tradesmen to clear
any blockages which may occur within the demised Premises; and 

  

	 	(e)	comply with all laws and all legal requirements concerning its use and occupation of the Premises. 

  

	7.2      (a)	Despite clause 7.1 the Lessee need not: 

  

	 	(i)	make structural repairs to the Premises; or 

  

	 	(ii)	replace items of a capital nature, 

 unless they arise
because of any act, omission or breach of this lease by the Lessee or its employees or agents or unless they are required because of the Lessee’s use of the Premises. 
  

	 	(b)	The Lessee is not responsible for repairs required as a result of natural disasters, deliberate damage or accident, such as fire, flood, storm, earthquake, explosion, which are
beyond the Lessee’s responsibility or control, unless: 

  

	 	(i)	the damage occurred as a result of or was substantially contributed to by the Lessee’s act or omission; or 

  

	 	(ii)	the Lessor is unable to recover from its insurer insurance money for the damage because of some act or omission, neglect, default or misconduct by the Lessee or by other persons for
whose conduct the Lessee is responsible. 

  

 PAGE 6 OF 42 

	7.3	The Lessee must: 

  

	 	(a)	ensure that all air-conditioning plant, fire equipment and all other plant machinery installations and equipment in the Premises (collectively called “plant”) are only
used for their proper purpose and must maintain keep such plant in good repair and condition having regard to its condition at the commencement of this Lease (or at the commencement of any prior lease if this lease is granted pursuant to an option)
or at the time of any replacement, except for fair wear and tear but the Lessee shall not be liable for any expenses of a capital nature unless they result from the Lessee’s failure to so maintain the plant; and 

  

	 	(b)	enter into and keep current during this Lease a maintenance contract with such responsible specialist contractors as reasonably approved by the Lessor for the regular inspection,
service, maintenance and repair (including the testing and inspection of such equipment pursuant to the requirements of all authorities) of all such plant and shall pay all fees and other charges payable to such contractors. In particular, the
service maintenance contract for the air-conditioning plant shall include provisions for inspection of such plant not less frequently than once every three months. 

  

	7.4	The Lessee will redecorate on each of the redecoration dates referred to in the Reference Schedule. 

  

	7.5	In this clause “redecoration” means painting or otherwise decorating (including workmanlike preparation) with two coats of good quality paint or other appropriate
decorative material all painted surfaces within the Premises, as well as the painted surfaces on the walls immediately outside of the Premises including the use of two pack polyurethane on all metal surfaces (including any roller doors) and
repriming where coated surfaces have been damaged or broken down. 

  

	7.6	If the Lessee fails to so redecorate, then the Lessor may do so and recover the costs from the Lessee, together with an amount equal to such rents and other amounts which the Lessor
would have been entitled to receive from the Lessee had the period (within which such decorating is carried out by the Lessor) been added to the term of this Lease. 

  

	7.7	If this lease is terminated before its expiry date (for any reason whatsoever), then in addition to clause 7.4 the Lessee must at the sole election of the Lessor (effective as
at such termination) either: 

  

	 	(a)	carry out the redecoration; or 

  

	 	(b)	pay to the Lessor an amount (agreed between the parties or failing agreement as determined by a quantity surveyor nominated by the Lessor) which represents the reasonable cost to
the Lessor of such redecoration. 

  

	7.8	The Lessee must: 

  

	 	(a)	keep the Premises clean and tidy and free of pests and vermin and regularly remove all rubbish; and 

  

	 	(b)	comply with any Lessor’s directions about refuse removal and recycling. 

  

 PAGE 7 OF 42 

	7.9	The Lessor will notify the Lessee (if possible) of any interruption or any service provided under this Lease and reinstate the service as soon as practicable after such
interruption. 

  

	8.	ALTERATIONS TO THE PREMISES 

  

	8.1	The Lessee must not make any alterations or additions to the Premises without the Lessor’s written consent (which consent must not be unreasonably withheld).

  

	8.2	If the Lessor gives approval, it may impose conditions including specifying in writing: 

  

	 	(a)	which parts of the Premises may not be reinstated and which parts must be; and 

  

	 	(b)	which items of the Lessee’s property installed as part of the works may not be removed, 

 when the Lease terminates. 
  

	8.3	The Lessee must ensure that any works it does, are done: 

  

	 	(a)	in a proper and workmanlike manner and at its sole risk; 

  

	 	(b)	in accordance with any plans, specifications and schedule of finishes required and approved by the Lessor (who may not unreasonably withhold its approval); 

 

	 	(c)	in accordance with the laws and the requirements of authorities; and 

  

	 	(d)	in accordance with the Lessor’s reasonable requirements and directions. 

  

	8.4	If such alterations or additions require consequential changes to the sprinkler system, fire control installations or other services in the Building or the Premises then the Lessee
must ensure such changes comply with all requirements of the relevant authorities. 

  

	8.5	After completion of such works the Lessee must provide the Lessor with a suitable copy of the as built drawings duly approved where necessary by all relevant authorities.

  

	8.6	Any alterations or additions made by the Lessee under this clause shall be made at the cost of the Lessee who will be responsible for their maintenance and repair. Upon the
termination or expiry of this Lease but subject to clause 8.2, the Lessee will upon request by the Lessor remove the same and make good any damage to the Premises occasioned by such removal and reinstate the Premises to the same condition
existing at the commencement of the lease (or the earlier lease if this lease is granted pursuant to an option to renew). 

  

	8.7	Any such alterations or additions and reinstatement shall be carried out by suitably qualified contractors approved by the Lessor (which approval shall not be unreasonably withheld)
and the Lessee hereby indemnifies the Lessor from and against all injury or damage suffered or incurred by the Lessor relating to any such alterations, additions and reinstatement. 

  

	8.8	Despite clause 8.1, the Lessee may, without the Lessor’s consent, install in the Premises any cables, wiring, and similar items which are required in the reasonable
opinion of the Lessee to operate its business from the Premises. 

  

 PAGE 8 OF 42 

	9.	INSURANCES 

  

	9.1	The Lessee must maintain in respect of the Premises the following policies of insurance for: 

  

	 	(a)	public liability for at least the amount set out in the Reference Schedule (or for such greater amount as the Lessor reasonably requires from time to time consistent with general
good industry practice) including where reasonable to do so a cross liability and waiver of subrogation clause and bearing endorsement to cover “Lessee’s liability extension”; “lease liability extension”; and the liability
of the Lessee to the Lessor under Clause 10 of this lease; 

  

	 	(b)	loss or damage to Lessee’s fixtures and fittings; 

  

	 	(c)	plate glass for its full replacement value; and 

  

	 	(d)	other insurances which are required by law or which, in the Lessor’s reasonable opinion; a prudent Lessee would take out including those in connection with any tenant’s
works on the Premises. 

  

	9.2	The Lessee must: 

  

	 	(a)	ensure all policies are placed with a reputable and solvent Insurer reasonably approved by the Lessor and contain such conditions endorsements and exclusions as are reasonably
acceptable to or reasonably required by the Lessor; 

  

	 	(b)	not make any alterations to the policies unless first approved in writing by the Lessor; 

  

	 	(c)	take such policies out in the name of the Lessee, the Lessor and any other interested person named by the Lessor; 

  

	 	(d)	notify the Lessor immediately if any such policy is cancelled or an event occurs which may allow a claim or affect rights under any policy; and 

  

	 	(e)	produce to the Lessor duplicate or certified copies of the policies and all renewal certificates and endorsement slips or an appropriate Certificate of Currency upon request by the
Lessor. 

  

	9.3	The Lessor shall be entitled to conduct or settle any claims which relate to the Premises under such insurance policies. 

  

	9.4	The Lessee must not do anything or bring or keep anything whereby: 

  

	 	(a)	any insurances effected by the Lessor or by the Lessee referred to in this Lease or any other insurance may be vitiated or rendered void or voidable; or 

  

	 	(b)	the rate of premium on such insurances shall be liable to be increased, unless the Lessee pays all additional premiums and expenses of such insurance as well as any additional
premium and expenses caused by the use to which the Premises are put by the Lessee. 

  

	9.5      (a)	It shall be a condition of each insurance effected by the Lessee (except for workers’ compensation), or the insurer should provide a written undertaking to the Lessor, that the
insurance shall not be cancelled by the insurer or its terms or conditions or the cover provided under the insurance shall not be 

  

 PAGE 9 OF 42 

 materially altered, except after the insurer shall have given to the Lessor not less than fourteen
(14) days prior written notice of its intention relating to any of those matters. 
  

	 	(b)	Each of the insurance policies effected by the Lessee (except for workers’ compensation) shall contain a waiver of the insurer’s rights of subrogation against the Lessor
and the Lessee arising out of any claim under the policy. 

  

	10.	INDEMNITIES & RELEASE 

  

	10.1	The Lessee agrees to use and occupy the Premises during the term of this lease at the Lessee’s risk as regards loss or damage to the Lessee and the Lessee’s property.

  

	10.2	The Lessee releases the Lessor from liability or loss arising from and costs incurred by any of the following: 

  

	 	(a)	damage, loss injury or death; 

  

	 	(b)	Deleted; 

  

	 	(c)	the unavailability, interruption or malfunction of a service connected to the Premises; 

  

	 	(d)	the operation of a statute, regulation or notice issued by any Authority; 

  

	 	(e)	a strike, accident, riot, industrial action or civil disturbance; 

  

	 	(f)	a fire, bomb threat or other emergency drill or the Lessee vacating the Premises because of any such event. 

  

	10.3	The Lessee indemnifies the Lessor from and against any liability, loss, damage, expense costs or claim suffered or incurred by the Lessor whether by act, omission or neglect of the
Lessee or the Lessee’s contractors, sub-tenants, licensees, agents, employees or invitees, including to a third party, during or after the term of this lease, in respect of or arising from: 

  

	 	(a)	loss, damage or injury to property or person caused or contributed to by the act, omission, neglect or default of the Lessee; 

  

	 	(b)	the misuse whether by act or omission by the Lessee of any services or facilities in the Building or in the Premises; 

  

	 	(c)	the overflow, leakage or escape of water, gas, electricity, fire, or other materials or substances in or from the Premises, caused or contributed to by the Lessee;

  

	 	(d)	loss, damage or injury to property or person, caused or contributed to by the Lessee arising out of its use of the Premises; 

  

	 	(e)	loss, damage or injury to property or persons, caused or contributed to by the defective installation of plant, fixtures and equipment in the Premises by the Lessee;

  

	 	(f)	the Lessee’s failure to notify the Lessor regarding any defect in the facilities or services in the Premises; 

  

 PAGE 10 OF 42 

	 	(g)	failure by the Lessee to comply with any laws relating to occupational health and safety;1ind 

  

	 	(h)	an accident on or about the Premises not caused or contributed to by the Lessor. 

  

	10.4	The releases and indemnities under this clause include any penalties, fines insurance claim excesses, legal and other costs incurred by the Lessor but do not apply to the extent
that the loss, damage or injury was caused by the wilful act omission or neglect of the Lessor, its employees or agents. 

  

	10.5	The indemnities by the Lessee continue after this lease expires or is terminated in respect of events occurring during the term and the Lessor may enforce any indemnity before
incurring any expenses. 

  

	11.	ASSIGNMENT AND SUBLETTING 

  

	11.1	The Lessee covenants and agrees that it will not assign, transfer, sub-let or in any manner part with the possession of the Premises or any part or assign the benefit of its estate
or interest in this lease or the Premises without the prior written consent of the Lessor which shall only be given if: 

  

	 	(a)	it reasonably satisfies the Lessor that the proposed new tenant or sub-tenant is respectable and financially sound and capable of conducting the business permitted by this lease or
such other business approved by the Council and by the Lessor in its absolute discretion; 

  

	 	(b)	in the case of a transfer, the proposed new tenant signs an agreement relating to the transfer in a form reasonably required by the Lessor whereby the new tenant agrees to observe
the terms of this lease as if it was the original tenant; 

  

	 	(c)	in the case of a sublease, the proposed sub-tenant signs an agreement in a form reasonably required by the Lessor whereby the subtenant agrees that it will not cause or contribute
to a breach of this lease by the Lessee and pays a market rental or acknowledges that the rental paid is not a market rental; 

  

	 	(d)	the Lessee has provided a Bank Guarantee or Security Bond (or if no Bank Guarantee or Security Bond is required whilst the assignor is the Lessee), then the proposed new tenant must
provide a substitute equivalent Bank Guarantee or security bond after which the existing Bank Guarantee or security bond will be released (to the extent it has not been claimed upon); 

  

	 	(e)	there is no Bank Guarantee or security bond required by the Lessee pursuant to this lease and the proposed new Lessee is a company, then either (at the election of the Lessor) the
directors or principal shareholders of that company shall, execute and complete a Deed of Guarantee and Indemnity in a form approved by the Lessor in respect of the performance of the proposed new Lessee’s obligations under this lease or the
proposed new Lessee provides a bank guarantee equivalent to 6 months rental including outgoing contributions; and 

  

	 	(f)	any default by the Lessee has been remedied by the Lessee or waived by the Lessor; 

  

 PAGE 11 OF 42 

	 	(g)	an appropriate form of transfer or sublease approved by the Lessor, is duly completed, executed, stamped and registered without cost to the Lessor; 

  

	 	(h)	the Lessee pays the Lessor’s reasonable costs in respect of any such consent, including all fees and charges payable in respect of any enquiries made by the Lessor as to the
proposed new tenant or sub-tenant; and 

  

	 	(i)	the Lessee establishes to the reasonable satisfaction of the Lessor that the Local Council and all other relevant authorities have given any necessary consent to the use of the
Premises by the proposed new tenant or sub-tenant. 

  

	11.2	If there is a proposed change in the shareholding of the Lessee or its holding company from that existing as at the commencement date of this lease so that a different person or
group of persons will control the composition of the board of directors or more than 50% of the shares giving a right to vote at general meetings, then that proposed change in control is treated as a proposed transfer of this lease and the person or
group of persons acquiring control is treated as the proposed new Lessee and clause 11.1 applies. This clause will not apply if the Lessee is a company whose shares are listed on any recognised Australian Stock Exchange.

  

	11.3	The Lessee may only create or allow to come into existence: 

  

	 	(a)	any security over the Lessee’s interest in this lease; or 

  

	 	(b)	Deleted 

 with the Lessor’s approval (which may not be
unreasonably withheld). 
  

	11.4	Nothing in this clause prohibits the Lessee permitting its parent company or any related company (within the meaning of the corporations law) sharing an office within the Premises
with the Lessee, provided the Sub-Lease or Licence is in a form reasonably acceptable to the Lessor. 

  

	12.	ADDITIONAL COVENANTS AND ACKNOWLEDGMENTS BY THE LESSEE 

  

	12.1	The Lessee must: 

  

	 	(a)	upon the expiration or sooner determination of the said term: 

  

	 	(i)	yield up the Premises in a clean and tidy condition and in the same condition as they existed at the commencement of the term (or the earlier term if this lease is granted pursuant
to any option) except for fair wear and tear; 

  

	 	(ii)	remove at the expense of the Lessee all Lessee’s fittings and fixtures comprising the Lessee’s fitout and as well as the fit out referred to in Clause 27 (except
anything the Lessor has stated in writing as a condition of any approval to Lessee’s works, need not be removed) as well as lettering and distinctive marks or signs put up by the Lessee or by the Lessor for the Lessee on the Premises or
elsewhere and rectify any damage by reason of such removal; 

  

	 	(iii)	unless the Lessor otherwise agrees or directs in writing, remove at the expense of the Lessee all Lessee’s fittings and fixtures comprising the Lessee’s fitout and as well
as the fit out referred to in Clause 27; 

  

 PAGE 12 OF 42 

	 	(iv)	ensure that any bolts securing storage facilities that are fixed into the floor or walls are cut off or that the top of such bolts are flush with the floor or wall level; and

  

	 	(v)	return to the Lessor all keys, access cards and similar devices for the Land and the Premises held by the Lessee and any other person; 

  

	 	(b)	comply promptly with and observe at its own expense all laws and the requirements of all Authorities with respect to the business conducted at the Premises by the Lessee as well as
with all such laws and requirements with respect to the Premises except what would have issued or be required irrespective of such use by the Lessee; 

  

	 	(c)	immediately notify the Lessor if the Premises are damaged or any accident to or defect in any of the services connected to the Premises occurs or the Lessee receives any notice from
any Authority; 

  

	 	(d)	pay upon demand: 

  

	 	(i)	all stamp duty and all the Lessor’s reasonable and proper legal costs and disbursements of and incidental to the preparation completion stamping and registration of this Lease
and of any consent required to it and of any surrender or other termination (otherwise than by effluxion of time); 

  

	 	(ii)	in case of default by the Lessee, to the Lessor all proper legal and other costs charges and expenses which the Lessor may incur in consequence of or in connection with such default
including remedying the breach; and 

  

	 	(iii)	all costs, charges and expenses in connection with works the Lessee carries out, including those incurred by the Lessor in considering, approving and supervising the works and those
of modifying or varying the Building because of the works; 

  

	 	(e)	pay interest to the Lessor on any amount payable under this lease by the Lessee but unpaid for 14 days (or 7 days in the case of rent and any contribution to the Lessor’s
outgoings). The rate of interest will be equal to 2% above the highest rate for the time being charged by the Lessor’s Bankers on commercial overdrafts for amounts exceeding $100,000.00 computed from the last of the days specified in this lease
that moneys are due until such payment is received by the Lessor and will be compounded monthly on the monthly date specified for payment of rent and will be recoverable in the same way as arrears of rent; 

  

	 	(f)	indemnify the Lessor from and against all claims which may be made upon the Lessor for injury or disease arising from smoking or passive smoking by any person on the Premises. If
required by the Lessor the Lessee’s insurance must be extended to include cover for such claims and include the Lessor as an insured party; and 

  

	 	(g)	Deleted. 

  

 PAGE 13 OF 42 

	 	(h)	participate in any fire, bomb threat or other emergency drill of which the Lessor gives notice including evacuating the Premises if informed of any such act or suspected events.

  

	12.2	The Lessee must not: 

  

	 	(a)	overload the structure of or services to the Premises; 

  

	 	(b)	bring onto, store or use in the Premises any inflammable, dangerous or explosive substances such as acetylene, industrial alcohol, burning fluids, and chemicals, (including for
heating or lighting the Premises) unless the sale or use of such substances constitutes proper conduct of the Lessee’s use permitted by this lease and the particular substances are stored and used only whilst taking all necessary safety
precautions and in compliance with all fire and safety regulations relating to such substances (including the reasonable requirements of the Lessor’s insurer); 

  

	 	(c)	use or permit to be used or stored at the Premises any radioactive, toxic or hazardous chemicals, wastes or substances, except in concentrations and quantities permitted by the
relevant statutory authorities and in accordance with any licences, permits or authorisations required by law and in accordance with the conditions imposed by such authorities or under their permission (including the reasonable requirements of the
Lessor’s insurer); 

  

	 	(d)	use upon the Premises any forklift truck or pallet trolleys unless the same have been equipped with rubber or pneumatic tyres (for the purpose of avoiding damage to floors by steel
or hard nylon wheels); 

  

	 	(e)	place or keep any machinery, safe or heavy articles or goods in the Premises of such weight and in such place or places unless first approved by the Lessor in writing after
consultation with its engineers; or 

  

	 	(f)	make any use of the Premises whether for the Lessee’s permitted business or otherwise (including but without prejudice to the generality of the foregoing the installation or
use of any machinery or the employment of any persons) whereby any public or statutory authority may give or issue or be entitled to give or issue any notice requiring structural alterations or repairs to be made or carried out to the Premises,
unless the Lessee shall at its own cost and expense, comply with the requirements of such notice. 

  

	12.3	The Lessee acknowledges that: 

  

	 	(a)	it occupies the Premises at its own risk and must not knowingly use the Premises in contradiction of any law; 

  

	 	(b)	subject to clause 13.2(f), it may not terminate this lease seek compensation or damages or stop or reduce payments under it because a service provided to the Premises is not
available or is interrupted or fails or the Lessor’s Property breaks down or a structural repair has not been carried out or the Common Area is not clean; 

  

	 	(c)	subject to clause 13.2(f), the Lessor is exempted from any liability to the Lessee for financial loss or inconvenience, including for damages, abatement of rent or for
repudiation and the tenant is not entitled to terminate this lease because: 

  

 PAGE 14 OF 42 

	 	(i)	any of the services supplying the Premises is, out of order and or is not functioning properly or at all; or 

  

	 	(ii)	any such services are temporarily stopped or interrupted pending inspection, repair, maintenance or replacement. 

  

	 	(d)	the Lessee’s property is at all times at the Lessee’s risk; 

  

	 	(e)	the Lessor may enforce its rights against the Lessee whether or not the Lessor enforces its rights against other tenants or occupiers of the Building or Land;

  

	 	(f)	the Lessor does not expressly or impliedly warrant that the Premises are now or will remain suitable or adequate for all or any of the purposes of the Lessee and, subject to the
law, all warranties (if any) as to the suitability and adequateness of the Premises are hereby expressly negatived; and 

  

	 	(g)	the Lessee and the Lessee’s employees and agents may use the Common Area for the purposes for which it is intended, subject to this lease and the Rules and Regulations.

  

	12.4	If the Lessee shall fail to remove the Lessee’s property comprising fixtures and chattels or any property of its customers employees permitted sub-tenants or licensees from the
Premises at the expiry or sooner termination of this Lease, the following provisions apply: 

  

	 	(a)	if the Lessor terminates this lease by re-entry, the Lessee may give the Lessor a notice within 7 days after termination that the Lessee wants to remove its property which the
Lessee may or must remove from the Premises; 

  

	 	(b)	within 7 days after the Lessee gives its notice under subclause (a), the Lessor must give the Lessee a notice, stating when and how the Lessee’s property is to be removed
from the Premises and by whom and may impose a condition, being the provision of a bank guarantee of a reasonable amount, to secure the Lessor against damage to the Premises and the Land by such removal; 

  

	 	(c)	the Lessor may treat the Lessee’s property as if the Lessee had abandoned its interest in it and it had become the property of the Lessor and deal with it in any way it sees
fit at the Lessee’s expense if the Lessee does not: 

  

	 	(i)	give the notice under subclause (a) on time; or 

  

	 	(ii)	remove its property in accordance with this clause or a notice given under it; or 

  

	 	(iii)	remove its property at the expiration of the term of this lease; and 

  

	 	(d)	the Lessee indemnifies the Lessor in respect of all claims demands losses damages proceedings costs charges and expenses which the Lessor may suffer or incur at the suit of any
person (other than the Lessee) claiming an interest in the Lessee’s property by reason of the Lessor acting in any manner permitted by this clause. 

  

	12.5	 If the Lessee fails to comply with clauses 12.1 and 12.4, the Lessee indemnifies the Lessor in respect of the cost of complying with clauses 12.1 and 12.4
including 

  

 PAGE 15 OF 42 

 
making good any damage to the Premises or the Building and until such time as the removal and making good required by clauses 12.1 and 12.4 has been
completed by the Lessee or by the Lessor upon the Lessee’s default so as to permit reletting of the Premises, then the Lessee must pay or allow to the Lessor by way of liquidated damages in relation to any such default, a sum equivalent to the
rent payable by the Lessee immediately prior to the expiration or determination of the term of this Lease for the period until the Premises are made fit for reletting. 
  

	13.	LESSOR’S COVENANTS 

  

	13.1	Subject to the Lessor’s rights, while the Lessee complies with its obligations under this lease, it may occupy the Premises during the term without interference by the Lessor.

  

	13.2	During the term the Lessor must: 

  

	 	(a)	insure the Building with a responsible and reputable insurance company for its reinstatement and replacement value; 

  

	 	(b)	pay all rates and taxes which are not payable directly to the relevant Authority by the Lessee or any other tenant; 

  

	 	(c)	keep the Premises structurally sound and maintain the Premises in good structural repair and condition having regard to its condition at the commencement of the term (or the prior
term if this lease is granted pursuant to an option), and allowing for fair wear and tear; 

  

	 	(d)	keep the Common Area clean and tidy; 

  

	 	(e)	procure the consent of any mortgagee of the Land to this lease; and 

  

	 	(f)	use all reasonable endeavours to ensure the services available to the Premises at the commencement of this Lease remain available at all times and to re-instate or repair services
(which are the responsibility of the Lessor) as soon as practicable after receipt of notification from the Lessee subject to any delays beyond the Lessor’s control. 

  

	14.	LESSOR’S RIGHTS 

  

	14.1	Subject to clause 14.2, the Lessor (or any person having an estate or interest in the Premises superior to or concurrent with the Lessor) may with or without its agents or
contractors enter the Premises to: 

  

	 	(a)	view the state of repair of the Premises; 

  

	 	(b)	remedy any breach of this lease if the Lessee does not remedy the breach after receiving 21 days notice of the breach; 

  

	 	(c)	fulfil its obligations under this lease; or 

  

	 	(d)	carry out any repairs, alterations or additions, or other work which the Lessor considers necessary or desirable or as required by any Authority or following any damage to the
Premises. 

  

 PAGE 16 OF 42 

	14.2	The Lessor must: 

  

	 	(a)	give reasonable prior notice of the Lessor’s intention to enter the Premises (except in the case of emergency); and 

  

	 	(b)	use all reasonable endeavours to ensure any works carried out pursuant to clause 14.1 do not unduly interfere with the use of the Premises by the Lessee having regard to the
nature of such works. 

  

	14.3	The Lesser reserves the right of uninterrupted passage of any services through pipes, ducts and wires in the Premises. 

  

	14.4	The Lessor may from time to time improve vary extend or reduce the Common Area or the Land or in any manner alter or deal with any part of the Building (other than the Premises)
including changing the direction or flow of pedestrian or vehicular traffic and the Lessee will make no claim for compensation against the Lessor if the Lessor maintains reasonable access to the Premises and to the Common Area for the parking of any
motor vehicles permitted to the Lessee and causes as little inconvenience to the Lessee as is practicable in the circumstances. 

  

	14.5    (a)	The Lessor may subdivide the Land (including under the Strata Titles or Community Title Legislation) and, if necessary, carry out construction or demolition works on the Land or
temporarily interrupt a service for that purpose if: 

  

	 	(i)	after the subdivision the Premises are substantially the same; and 

  

	 	(ii)	this would not have a substantial adverse effect on the Lessee’s Business. 

  

	 	(b)	The Lessee will execute any approval reasonably required as a result of such subdivision. 

  

	14.6	The Lessor may create easements or other rights over the Land, the Building or the Premises unless this would have a substantial adverse effect on the Lessee’s business or
rights under this lease. 

  

	14.7	The Lessor has the right to use the exterior walls and roof of the Building as well as the right to uninterrupted passage of all pipes and cables passing through the Premises and
the running of all substances and services through them provided such pipes and cables do not unreasonably interfere with the Lessee’s use and enjoyment of the Premises. 

  

	14.8	After giving reasonable notice the Lessor may enter the Premises to show prospective Purchasers through the Premises and display from the Premises a sign indicating that the
Premises or the Building is for sale provided such sign does not obstruct any signs of the Lessee. 

  

	14.9	Subject to Clause 14.2(a), within 6 calendar months immediately preceding the expiration of the term (unless the Lessee has exercised any option to renew this lease), .the
Lessor may at all reasonable times inspect the Premises with prospective tenants or occupiers and the Lessee will allow the Lessor to exhibit a notice indicating that the Premises are offered for leasing provided such sign does not obstruct any
signs of the Lessee. 

  

 PAGE 17 OF 42 

	14.10  (a)	If the Lessor deals with its interest in the Land so that another person becomes lessor, the Lessor is released from its obligations under this lease arising after it ceases to be
lessor. 

  

	 	(b)	If requested by the Lessor, the Lessee must at the Lessor’s cost sign the documents that the other person reasonably requires to give a direct contractual relationship with the
Lessee. 

  

	 	(c)	Any obligation owed by the Lessee to the Lessor which is due for performance before the Lessor ceases to be the Lessor (including any rental or outgoing adjustment) remains owing to
the Lessor as at such time and is recoverable by the Lessor in its own name. 

  

	14.11	After giving the Lessee reasonable notice, the Lessor may do anything which the Lessee should have done under this lease but which it has not done or which the Lessor considers it
has not done properly. 

  

	14.12	The Lessor may appoint agents or others to exercise any of its rights or perform any of its duties under this lease but communications from the Lessor override those from the agents
or others if they are inconsistent. 

  

	15.	DEFAULT BY THE LESSEE 

  

	15.1	Each of the following constitutes a default by the Lessee under this lease: 

  

	 	(a)	if the rent hereby reserved or any part thereof or any contribution to the Lessor’s Outgoings shall be unpaid and in arrears for 7 days after the same shall have become due
whether any formal or other demand shall have been made for such moneys; or 

  

	 	(b)	if any other moneys payable by the Lessee to the Lessor shall not have been paid within 14 days of the due date for such monies; or 

  

	 	(c)	if the Lessee shall not commence effecting the repairs required by any notice given by the Lessor to the Lessee within a reasonable time after the giving of such notice; or

  

	 	(d)	if the Lessee shall fail to observe perform or fulfil any of the other terms covenants conditions and restrictions contained on the part of the Lessee whether positive or negative
after having been given 30 days written notice by the Lessor specifying the failure; or 

  

	 	(e)	if the Lessee or any Guarantor (being a company) enters into liquidation (otherwise than for the purpose of reconstruction or amalgamation reasonably 

  

	 	(f)	approved by the Lessor in writing) or if a receiver or official manager or provisional liquidator or administrator is appointed or enters into a scheme of arrangement or composition
with or assignment for the benefit of all or any clause of its creditors; or 

  

	 	(g)	if the interest of the Lessee under this Lease is attached or taken in execution under any legal process; or 

  

	 	(h)	if the Lessee or any Guarantor (being an individual) shall be declared bankrupt or insolvent according to law, then the Lessee shall be deemed to have made default.

  

 PAGE 18 OF 42 

	15.2	If the Lessee shall have made such default, the Lessor may (after first giving prior notice where required by law) at its option: 

  

	 	(a)	re-enter into and take possession of the Premises or any part in the name of the whole (by force if necessary) and eject the Lessee and all other persons therefrom and repossess and
enjoy the same as of its first and former estate upon which event this Lease shall be absolutely terminated; or 

  

	 	(b)	by notice in writing to the Lessee terminate this Lease (and from the date of giving such notice this Lease shall be absolutely terminated); or 

  

	 	(c)	by notice in writing to the Lessee elect to convert the said term into a tenancy from week to week in which event this Lease shall be determined as from the giving of such notice
and thereafter the Lessee shall hold the Premises from the Lessor as Lessee from week to week at a weekly rental equal to one (1) week’s proportion of the rent payable at such time commencing from the date of service of such notice (such
rental being payable weekly in advance) but otherwise on the terms and conditions of this Lease so far as they can be applied to a weekly tenancy. 

  

	15.3	The Lessee agrees that the following are essential terms of this Lease: 

  

	 	(a)	the covenant to pay rent throughout the term of the Lease on the due date for payment of each monthly instalment of rent; and 

  

	 	(b)	the covenant to pay the Lessee’s proportion of the Lessor’s Outgoings; and 

  

	 	(c)	the covenant dealing with assignment, transfer and subletting; and 

  

	 	(d)	the covenant relating to repair and maintenance. 

  

	15.4	If the Lessee makes or is deemed to have made a default in the circumstances contained in this clause and if, as a consequence of such a default, the Lessor:

  

	 	(a)	determines the Lease by re-entry; or 

  

	 	(b)	determines the Lease by notice; or 

  

	 	(c)	converts the term into a tenancy from week to week and if that tenancy is subsequently determined either by the Lessor or the Lessee before the expiration of the whole of the term;
or 

  

	 	(d)	accepts the surrender of this Lease; 

 THEN the
Lessor in addition to the remedies referred to in paragraphs (a), (b), (c) and(d) of this subclause and in addition to any other rights and remedies the Lessor may have or may have exercised, will be entitled to recover from the Lessee
damages for all loss suffered because this Lease will not have run the whole of its term, such damages to include, but not to be limited to, the costs of recovery of possession, the costs of reinstating the Premises, the costs of re-letting and any
loss occasioned arising out of any lapse of time before re-letting or any re-letting at a rent and upon terms not as advantageous to the Lessor as the terms of this Lease. 
  

	15.5	 In the event that the Lessee’s conduct (whether acts or omissions) constitutes a repudiation of this Lease, the Lessee covenants to compensate the Lessor for
loss or 

  

 PAGE 19 OF 42 

 
damage suffered by reason of the repudiation or breach during the entire term of this Lease. The Lessor’s entitlement to recover damages shall not be
affected or limited if the Lessee shall abandon or vacate the Premises or if the Lessor shall elect to re-enter or terminate the Lease or accept the Lessee’s repudiation. 
  

	15.6	If the Lessee shall fail to pay any moneys payable by it to any person other than the Lessor or if the Lessee shall fail to perform any affirmative covenant on the part of the
Lessee, the Lessor may at its option as the agent of the Lessee make any such payment or do all such acts and things and incur such expenses as may be necessary to perform such covenants and the full amount of any payments made or expenses incurred
shall constitute a liquidated debt due and owing by the Lessee to the Lessor. 

  

	15.7	No consent or waiver (express or implied) by the Lessor to or of any breach of any covenant condition or duty of the Lessee shall be construed as a consent or waiver to or of any
other breach of the same or any other covenant condition or duty, 

  

	15.8	Acceptance by the Lessor of arrears of rent or other money or of any breach of this Lease does not constitute a waiver of the Lessor’s rights. 

  

	15.9	In the event of the Lessee vacating the Premises with or without the Lessor’s consent, the Lessor shall be obliged to take reasonable steps to mitigate its damages and to
endeavour to re-lease the Premises at a reasonable rent and on reasonable terms. 

  

	15.10	The expiry or termination of this lease does not affect the rights of either party for a breach of this lease by the other party before the expiry or termination.

  

	16.	RULES AND REGULATIONS 

  

	16.1	The Lessee must observe and comply with the Rules and Regulations contained in Schedule 3 (as from time to time varied, added to, deleted or amended). 

  

	16.2	The Lessor shall have the right at any time and from time to time to delete vary amend or add to the said Rules and Regulations in respect of the management, safety and control of
the Land, Building, and the Common Area or in the conduct of occupants. The Lessee must observe and comply with such deletions variations amendments or additions following notice in writing from the Lessor. 

  

	16.3	Despite the foregoing, no deletion, variation, amendment or additions to such Rules and Regulations shall be inconsistent with the rights of the Lessee in this Lease.

  

	16.4	The Lessee acknowledges and agrees that the failure of the Lessee to keep any such Rules and Regulations as may from time to time be in force shall constitute a breach of the terms
of this Lease. 

  

	16.5	The Lessor is not liable to the Lessee for any alleged loss or damage in respect of the failure to enforce the Rules or Regulations or any of them. 

  

	17.	CAR PARKING 

  

	17.1	For no additional consideration, the Lessor also grants an exclusive licence to the Lessee its employees and agents to park the number of motor vehicles referred to in the Reference
Schedule in the location as directed from time to time by the Lessor. 

  

 PAGE 20 OF 42 

	17.2	The Lessee, shall park in the allotted spaces only and at its risk and the Lessor shall not in any way be liable or responsible for any loss damage or injury which may be sustained
by the Lessee or any of its servants or agents arising out of its exercise of its rights conferred by this clause except to the extent caused by the Lessor’s negligence or default. 

  

	17.3	The Lessee indemnifies the Lessor against liability or loss incurred or suffered by the Lessor in connection with any damage, loss} injury or death caused or contributed to by the
act neglect or default of the Lessee or its employees or agents arising out of its exercise of its rights conferred, by this clause. 

  

	17.4	The Lessee must give the Lessor prompt notice in writing of any accident to or defect or want of repair in any services or equipment in the car parking area and of any circumstances
likely to cause any damage or risk. 

  

	17.5	The rights and benefits of the Lessee contained in this clause: 

  

	 	(i)	are not severable from the other rights and benefits of the Lessee contained in this Lease and accordingly shall not be capable of being separately assigned or otherwise dealt with;
and 

  

	 	(ii)	shall rest in contract only and shall not create or confer upon the Lessee any tenancy or any estate or interest in or over the car spaces. 

  

	17.6	The Lessee must make good any damage sustained to any bitumen, concrete or other paved surface of such car parking area through neglect, default or misconduct on the part of the
Lessee. 

  

	17.7	The Lessee must keep the car spaces tidy and only use them for car parking. 

  

	18.	BANK GUARANTEE 

  

	18.1	The Lessee must on or before the date of its execution of this Lease deliver to the Lessor a guarantee by a Bank trading in the State of New South Wales in the form of an
unconditional and irrevocable undertaking to pay on demand whether by one or more requests, without any expiry date, drawn in favour of the Lessor, in a form reasonably acceptable to the Lessor and for an amount equivalent to the number of months
referred to in the Reference Schedule in respect of rental including the Lessee’s proportion of the Lessor’s Outgoings plus GST on such amounts payable from time to time during this Lease. 

  

	18.2	The Lessor shall be entitled to immediately demand payment from the Bank following any breach by the Lessee of its obligations under this Lease (whether registered or not) and shall
be entitled to apply such amount as may be received towards the satisfaction of any amounts that may be payable to the Lessor as a result of any such breach. 

  

	18.3	Any application by the Lessor of the Bank Guarantee pursuant to this clause shall not be deemed to waive the Lessee’s breach. 

  

	18.4	The Lessee must vary the amount of the said Guarantee within 14 days of each rent review so that the said amount at all times represents the amount referred to in clause 18.1.

  

 PAGE 21 OF 42 

	18.5	If moneys are paid under the Bank Guarantee, the Lessee must ensure that a replacement Guarantee is issued so that the amount of the Guarantee held by the Lessor represents the
amount contemplated by this clause. 

  

	18.6	If during the term of this lease the Lessor shall transfer its ownership in the Premises and shall give written notice to the Lessee requiring amendment or replacement of the Bank
Guarantee to reflect the new Lessor, then the Lessee shall at the Lessor’s cost comply with such notice within 21 days of service. In the event of the failure of the Lessee to comply with this subclause, the Lessor shall be at liberty to
handover the Bank Guarantee to any such assignee or transferee and thereupon the Lessor shall be discharged from all liability to the Lessee or any other person in respect of the said Bank Guarantee. 

  

	18.7	If the Lessee does not provide the Bank Guarantee required by this clause the Lessor shall be entitled to terminate this lease. 

  

	19.	OPTION TO RENEW 

 If the Lessee: 
  

	 	(a)	requires a renewed lease of the Premises for any further term specified in the Reference Schedule from the expiration of the term of this Lease; and 

  

	 	(b)	gives to the Lessor written notice not less than nine (9) calendar months prior to the expiration of the term of this Lease, 

 THEN, if the Lessee is not at the expiration of this term or at the date of giving of the said notice, in breach of this Lease, the Lessor must
grant and the Lessee must accept (but at the expense of the Lessee) a renewed lease of the Premises for the said further term on the same conditions as this Lease (including all existing Bank Guarantees, Security Deposits and other guarantees)
except that: 
  

	 	(c)	this clause shall not be included in the renewed lease; 

  

	 	(d)	the rent payable at the commencement of the renewed lease until the first rent review shall be the current market rent calculated and determined in accordance with
Schedule 1A as if the first day of the term of the renewed lease was a “review date” and the terms and conditions of the renewed lease shall be taken into account in substitution of the terms and conditions of this Lease in such
determination but in no event shall the rent payable at the commencement of the option term be less than the rent payable during the year immediately preceding the commencement of the option term; and 

  

	 	(e)	the rental payable during the renewed lease shall be subject to review in accordance with the provisions of Schedule 1A and/or 1B upon each rent review date(s) so specified in
the Reference Schedule; and 

  

	 	(f)	such alterations to the terms and conditions which necessarily arise in the event that the premises have been converted to an allotment under the Strata Titles Legislation during
the initial term of this lease PROVIDED THAT any alteration to outgoings arising as a result of such conversion must not be greater than those outgoings which would have been payable if no conversion had occurred. 

  

 PAGE 22 OF 42 

	20.	ENVIRONMENTAL PROTECTION 

  

	20.1	The Lessee agrees to comply with all Environmental Protection Legislation during the term of this lease to the extent that the Lessee causes any requirement of such legislation to
be applied to the Land and will not bring onto or allow to remain on the Land any substance or material, the presence of which is, or with the passage of time may, constitute or create an environmental contamination risk or hazard.

  

	20.2	The Lessee indemnifies the Lessor from and against all costs, damages, penalties, fines, losses or claims which the Lessor may sustain as a result of any breach of clause 20.1
by the Lessee including the cost incurred by the Lessor in cleaning up and reinstating the Land, disposing of any such materials and complying with all legal requirements in the removal, storage, transportation and disposal of the material.

  

	21.	MEASUREMENT OF LETTABLE AREA 

  

	21.1	If it should become necessary because of changes or alterations to the Premises or the Building or because of the creation of further buildings on the Land, to recalculate the
lettable area of the Premises or the Building, the Lessor shall be entitled to redetermine any such area in accordance with the “Property Council of Australia Method of Measurement 1997 Revision”, published or used by the Property Council
of Australia (or any subsequent revised method) based on the gross lettable area for industrial Premises. 

  

	21.2	If any such measurement is altered during this Lease, then recalculations of the lettable area shall be undertaken including for rent review and the calculation of the Lessee’s
percentage of contributions to the Lessor’s Outgoings. 

  

	21.3	A certificate by a surveyor or architect produced by the Lessor indicating that person’s or firm’s calculations in accordance with clause 21.1 or 21.2 is prima facie
evidence of those recalculations. 

  

	22.	GENERAL 

  

	22.1	If the Lessee continues to occupy the Premises after the expiry of this lease with the Lessor’s approval, it does so under a monthly tenancy: 

  

	 	(a)	which either party may terminate on 1 month’s notice ending on any day; 

  

	 	(b)	at a rent which is one twelfth of the then annual rent; and 

  

	 	(c)	on the same terms and conditions as this Lease except those changes the Lessor requires as a condition of giving its approval to the holding over. 

  

	22.2	A Notice or other document given pursuant to this lease must be: 

  

	 	(a)	in writing signed by the party giving it or by its director, manager, secretary or agent; and 

  

	 	(b)	delivered at or posted by prepaid post to the address of the party as referred to in this Lease (as varied by any notice) or sent by facsimile transmission to that party or served
in accordance with Section 170 of the Conveyancing Act. 

  

	22.3	A notice or other document is taken to be served: 

  

	 	(a)	if hand delivered, on the date of delivery; 

  

 PAGE 23 OF 42 

	 	(b)	if posted, on the second day after posting; and 

  

	 	(c)	if sent by facsimile, on the next business day after it is sent unless the sender is aware that transmission is impaired. 

  

	22.4	A provision of or a right created under this lease may not be waived or varied except in writing signed by the party to be bound. 

  

	22.5	If the Lessor: 

  

	 	(a)	accepts rent or other money under this lease (before or after termination); or 

  

	 	(b)	does not exercise or delays exercising any right under this Lease; or 

  

	 	(c)	gives any concession to the Lessee; or 

  

	 	(d)	attempts to mitigate its loss, 

 it is not a waiver of any
breach or of the Lessor’s rights under this lease. An attempt by the Lessor to mitigate its loss is not a surrender of this lease. 
  

	22.6	Expiry or termination of this Lease does not affect any rights in connection with a breach of this Lease before then or affect the Lessee’s obligations to make payments under
this Lease for periods before then. 

  

	22.7	The Lessee acknowledges that this Lease contains the whole of the terms and conditions agreed between the parties and the Lessee acknowledges that it has relied only on its own
enquiries in connection with this Lease and does not rely on” any representation or warranty by the Lessor or any person acting or seeming to act on the Lessor’s behalf except as contained in this Lease. 

  

	22.8	When an obligation contained in this Lease prohibits the Lessee from doing anything, it also prohibits the Lessee from authorising or allowing it to be done by any other person.

  

	22.9    (a)	The Lessee may not, subject to subclause (b), lodge a caveat on the title to the land, if the only purpose of the caveat is to ensure that it is enforceable against the
Lessor’s successors in title. 

  

	 	(b)	The Lessee may lodge a caveat noting the Lessee’s interest under this lease if this lease is not registered. 

  

	 	(c)	If the Lessee lodges a caveat permitted by this clause, it must do everything necessary to permit registration of any dealing if its rights under this lease are not diminished.

  

	 	(d)	The Lessee must withdraw that caveat on the earlier of registration and expiry or termination of this lease. 

  

	22.10	If the Premises are not separately metered for air conditioning services or electricity, then if these services are made available by the Landlord outside normal business hours, the
Tenant must pay to the Landlord its reasonable share of the cost of such services (on a pro rata basis where necessary) within 7 days of request accompanied by reasonable details. 

  

	22.11	 In the event of a person other than the Lessor becoming entitled to receive the rent and other moneys payable by the Lessee either by operation of law or otherwise,
the 

  

 PAGE 24 OF 42 

 
Lessee agrees that such person shall have the benefit of all covenants and agreements on the part of the Lessee in this Lease and the Lessee at the cost of
the Lessor will enter into such covenant with such other person in that regard as the Lessor may reasonably require. 
  

	23.	LESSOR’S LIMITATION OF LIABILITY 

  

	23.1	The Lessor enters into this Lease as custodian and agent of the Trustee of the Trust and in no other capacity. 

  

	23.2	The parties other than the Lessor acknowledge that the Obligations are incurred by the Lessor solely in its capacity as custodian of the Assets and as agent of the Trustee and that
the Lessor will cease to have any Obligation under this Lease if the Lessor ceases for any reason to be owner of the Assets. 

  

	23.3	The Lessor will not be liable to pay or satisfy any Obligations except to the extent to which it is indemnified by the Trustee or except out of the Assets against which it is
entitled to be indemnified in respect of any liability incurred by it. The obligation of the Trustee to indemnify the Lessor and the right of the Lessor to be indemnified out of the Assets are limited. 

  

	23.4	The parties other than the Lessor may enforce their rights against the Lessor arising from non-performance of the Obligations only to the extent of the indemnity referred to in
clause 23.3. 

  

	23.5	If any party other than the Lessor does not recover all money owing to it arising from non-performance of the Obligations it may not seek to recover the shortfall by:

  

	 	(a)	bringing proceedings against the Lessor in its personal capacity; or 

  

	 	(b)	applying to have the Lessor wound up or proving in the winding up of the Lessor. 

  

	23.6	Except in the case of and to the extent of fraud, negligence or breach of duty on the part of the Lessor under its custody agreement with the Trustee, the parties other than the
Lessor waive their rights and release the Lessor from any personal liability whatsoever, in respect of any loss or damage: 

  

	 	(a)	which they may suffer as a result of any: 

  

	 	(i)	breach by the Lessor of any of its Obligations; or 

  

	 	(ii)	non-performance by the Lessor of the Obligations; and 

  

	 	(b)	which cannot be paid or satisfied from the indemnity set out above in clause 23.3 in respect of any liability incurred by it. 

  

	23.7	The parties other than the Lessor acknowledge that the whole of this Lease is subject to this clause and subject to clause 23.6, the Lessor shall in no circumstances be required to
satisfy any liability arising under, or for non performance or breach of any Obligations under or in respect of, this Lease or under or in respect of any other document to which it is expressed to be a party out of any funds, property or assets
other than to the extent that this Lease requires satisfaction out of the Assets under the Lessor’s control and in its possession as and when they are available to the Lessor to be applied in exoneration for such liability.

  

 PAGE 25 OF 42 

	23.8	The parties acknowledge that the Trustee is responsible under the Constitution for performing a variety of obligations relating to the Trust, including under this Lease. The parties
agree that no act or omission of the Lessor (including any related failure to satisfy any Obligations) will constitute fraud, negligence or breach of duty of the Lessor for the purposes of clause 23.6 to the extent to which the act or omission was
caused or contributed to by any failure of the Trustee or any other person or fulfil its obligations relating to the Trust or by any other act or omission of the Trustee or any other person. 

  

	23.9	No attorney, agent or other person appointed in accordance with this Lease has authority to act on behalf of the Lessor in a way which exposes the Lessor to any personal liability
and no act or omission of such a person will be considered fraud, negligence or breach of duty of the Lessor for the purposes of clause 23.6. 

  

	23.10	In this and the following clause, the following definitions apply: 

 “Assets” includes all assets, property and rights real and personal of any value whatsoever of the Trust. 
 “Constitution” means the Constitution of the Trust as amended from time to time 
 “Obligations” means all
obligations and liabilities of whatever kind undertaken or incurred by, or devolving upon the Lessor under or in respect of this Lease 
 “Trust” means the Macquarie Goodman Capital Trust 
 “Trustee” means the entity from time to time acting in the
Trustee’s capacity which at the date of this Lease is Macquarie Goodman Funds Management Limited ACN 067 796 641. 
 “Trustee’s
Capacity” means the capacity in which the Trustee enters into this Lease namely as Responsible Entity of the Trust 
  

	24.	RESPONSIBLE ENTITY’S LIMITATION OF LIABILITY 

  

	24.1	Capacity 

 The Trustee’s liability under this
Lease is limited to the Trustee’s Capacity and the Trustee is not liable in any other capacity. 
  

	24.2	Limitation 

 Subject to clause 24.4, the liability
of the Trustee in respect of any cause of action, claim or loss arising: 
  

	 	(a)	under or in connection with this Lease; 

  

	 	(b)	in connection with any transaction, conduct or any other agreement contemplated by this Lease; or 

  

	 	(c)	under or in connection with (to the extent permitted by law) any representation or undertaking given or to be given in connection with this Lease, 

 (each, a Trust Claim), is limited to the Assets. The right of the parties other than the Trustee to recover any amount in respect of any (and all) Trust
Claims is limited to a right to recover an amount not exceeding the amount which the Trustee is entitled 
  

 PAGE 26 OF 42 

 and able to recover from the Assets (after taking account of the costs of exercising its right of
indemnity or exoneration) and if, after exercise of those rights, any such amount remains outstanding, no further Trust Claim may be made against the Trustee personally. 
  

	24.3	Acknowledgment of limitations 

 The parties other
than the Trustee agree and acknowledge that they must not, in respect of any Trust Claim: 
  

	 	(a)	subject to clause 24.4, bring proceedings against the Trustee in its personal capacity; 

  

	 	(b)	seek to appoint an administrator or liquidator to the Trustee; 

  

	 	(c)	commence the winding-up, dissolution or administration of the Trustee; or 

  

	 	(d)	appoint a receiver, receiver and manager, administrative receiver or similar official to all or any of the assets of the Trustee, 

 except to the extent that the steps taken affect any Assets or the Trustee’s right of recourse against, and indemnity from, the Assets and nothing
else. 
  

	24.4	Exception 

 If the Trustee acts negligently,
fraudulently, with wilful misconduct or in breach of trust with a result that: 
  

	 	(a)	the Trustee’s right of indemnity, exoneration or recoupment of the Assets; or 

  

	 	(b)	the actual amount recoverable by the Trustee in exercise of those rights, 

 is reduced in whole or in part or does not exist, then to the extent that such right or the amount so recoverable is reduced or does not exist, the Trustee may be personally liable. 
  

	25.	DISPUTE RESOLUTION 

  

	 	(a)	A party must not commence legal proceedings (other than for injunctive relief) unless it has complied with this clause. 

  

	 	(b)	If there is a dispute between the parties, either party may give a notice to the other: 

  

	 	(i)	succinctly setting out the details of the dispute; 

  

	 	(ii)	stating that it is a dispute notice given under this clause. 

  

	 	(c)	Within 10 business days after the delivery of the dispute notice, the recipient must deliver to the other party a notice in response: 

  

	 	(i)	stating that it is a notice given under this clause; and 

  

	 	(ii)	succinctly setting out any information it believes is directly relevant to the dispute. 

  

 PAGE 27 OF 42 

	 	(d)	The parties must meet within 10 business days after the date of delivery of the dispute notice to attempt to resolve the dispute and must use its best endeavours and act in good
faith. 

  

	 	(e)      (i)	If the parties cannot solve the dispute within 20 business days of the date on which the dispute notice is delivered, the parties must each escalate the dispute to their respective
chief executive officer. 

  

	 	(ii)	Each party must provide its chief executive officer with a copy of: 

  

	 	(A)	the dispute notice; 

  

	 	(B)	the notice in response; and 

  

	 	(C)	a succinct account of any subsequent meetings or correspondence between the parties. 

  

	 	(f)	If the chief executive officer cannot solve the dispute within 30 business days of the date on which the dispute notice is delivered, then either party is not restricted in pursuing
its rights under this lease. 

  

	 	(g)	The parties must each continue to perform their respective obligations under this lease pending resolution of the dispute. 

  

	26.	GOODS & SERVICES TAX 

  

	 	(a)	In this clause: 

 GST Act means the Act entitled A
New Tax System (Goods and Services Tax) Act^l999 as amended from time to time. 
 GST, and Taxable Supply have the meanings given to
those terms in the GST Act. 
 Lessor’s Outgoings, Building Outgoings, Complex Outgoings and Statutory Outgoings (collectively,
in this clause Outgoings) excludes any GST forming part of the relevant expenses when incurred by the Lessor for which the Lessor can claim an Input Tax Credit because the expense was consideration for a Taxable Supply to the Lessor.

 Relevant Agreement means this Lease and any Deed, Agreement or other instrument in any way related to or connected with it or the
letting of the Premises by the Lessor to the Lessee under this Lease. 
  

	 	(b)	All payments to be made by the Lessee under any Relevant Agreement (including but not limited to Rent and contributions to Outgoings) are calculated without regard to GST. If any
such payment is for a Taxable Supply by the Lessor, the Lessee will pay to the Lessor concurrently with that payment an additional amount equal to the GST imposed on the Taxable Supply in question. 

  

	 	(c)	Where the Lessor has become subject to any penalties or interest as a result of late payment of GST because of the failure of the Lessee to comply with the terms of this clause,
then the Lessee shall pay to the Lessor an additional amount on demand equal to the amount of those penalties and interest. 

  

 PAGE 28 OF 42 

	 	(d)	The Lessor must as soon as practicable give, to the Lessee tax invoices which set out the GST payable on any taxable supply 

  

	27.	ADDITIONAL REINSTATEMENT AND MAKE GOOD OBLIGATIONS 

  

	 	(a)	The parties acknowledge and agree that on or about the time that this Lease was entered into, the Lessee acquired from Dynsol Laboratory Pty Limited (“the previous
tenant”) the fit out improvements and alterations carried out by the previous tenant to the Premises as referred to in the Plan comprising an exhibit to this Lease. 

  

	 	(b)	In addition to the obligations of the Lessee at the expiration or earlier termination of this Lease as to make good and reinstatement of the Premises, the Lessee also agrees with
the Lessor to remove the previous fit out acquired from the previous tenant to the intent that the Lessee must restore and reinstate the Premises to an open plan which will include, but not be limited to, the removal of all laboratory and other
plant, equipment, fixtures, fittings, partitioning, panelling, air conditioning plant and equipment and floor coverings. 

  

	 	(c)	In the event that the Lessee fails to comply with this clause, then the provisions of Clause 12.5 (mutatis mutandis) shall apply. 

  

	28.	ADDITIONAL OR ALTERNATE PREMISES 

  

	28.1	Lessee may request additional space 

 The parties
acknowledge that the Lessee has advised the Lessor that the Lessee requires additional or larger premises for the Lessee’s business (New Premises). The Lessee must, before approaching any other prospective Lessor for new premises comply with
this clause. 
  

	28.2	Negotiation over New Premises 

 The Lessor and the
Lessee shall negotiate in good faith in an endeavour to reach agreement on a lease of suitable New Premises located at 24 Rodborough Road, Frenchs Forest. 
  

	28.3	Surrender of Lease 

 If the parties agree on a lease
of New Premises, then the Lessee may surrender this Lease on giving the Lessor no less than six months prior written notice of the effective date of surrender, which date must not be earlier than the date of commencement of the lease of the New
Premises. Nothing in this clause obligates the Lessee to surrender this Lease when a lease for the New Premises is entered into and the Lessor acknowledges that the Lessee may at its discretion occupy both these existing premises and the New
Premises concurrently. 
  

	28.4	Documentation of lease of New Premises 

 Once the
commercial terms relating to the lease of the New Premises are agreed, the parties will use all reasonable endeavours to finalise and execute the lease of the New Premises as soon as practicable thereafter. 
  

 PAGE 29 OF 42 

	28.5	Legal Costs 

 Each party shall bear its own costs of
the preparation, execution, stamping and registration of the surrender of this Lease and the new lease of the New Premises. The Lessee shall bear all stamp duty and registration fees (including fines and penalties) in relation to the surrender of
this Lease and the new lease of the New Premises 
  

 PAGE 30 OF 42 

 SCHEDULE 1 
  

	A.	Rent Review - Current Market Rent 

  

	(a)	The annual rent payable pursuant to this Lease (and any renewal) may be reviewed by the Lessor on each of the relevant rent review dates referred to in the Reference Schedule and
shall be such amount as the Lessor considers is the current market rent of the Premises as at each such review date (having regard to all matters then relevant to the determination of such rent) and notified to the Lessee in writing.

  

	(b)	Within a period of 28 days after receipt of the said notice from the Lessor, the Lessee may by notice in writing to the Lessor dispute that the amount set out in the said notice is
the current market rent of the Premises at such review date. 

  

	(c)	Unless such notice of dispute is served on the Lessor within 28 days of service of the said notice by the Lessor (in which regard tune shall be of the essence), the amount stated in
the said notice by the Lessor shall become the rent reserved by this lease as and from the relevant review date. 

  

	(d)	In the event of the Lessee serving a notice of dispute in accordance with subclause (b) of this Clause and in the event that the parties cannot agree on the current market rent
within a further 21 days after service of the said notice of dispute, then and in such event the current market rent shall be determined by two qualified valuers of the Australian Property Institute (Inc) N.S.W. Division (or its succeeding body) one
appointed by the Lessor and one appointed by the Lessee. 

  

	(e)	The said appointments shall be made within a further period of 21 days after the parties shall have failed to agree on the current market rent (with one party appointing both
valuers if the other fails to appoint a valuer within the said period) and the said valuers shall jointly determine the current market rent. 

  

	(f)	The two valuers shall deliver their determination in writing within 35 days of their appointment or such extended time as the parties shall agree upon. 

  

	(g)	If the two valuers cannot agree upon a determination within the time prescribed but the difference in their respective determinations is 5% or less of the total valuations, then the
current market rent shall be one half of the total of the two determinations. 

  

	(h)	If the said difference exceeds 5% of the total valuations or if either or both valuers are unable to make a determination in the time prescribed, they may mutually appoint a third
valuer so qualified to determine the current market rent within the range of the disagreement and within 28 days of being so called upon to act and subject as aforesaid such decision shall be final on both the Lessor and Lessee.

  

	(i)	If the valuers do not mutually appoint a third valuer within 14 days of expiry of the period granted to them to deliver their valuation or if a third valuer shall be unwilling or
unable to act, then either party may request the President for the time being the Australian Property Institute (Inc) N.S.W. Division (or its succeeding body) to nominate the third valuer. 

  

	(j)	The amount determined pursuant to this clause as being tile current market rent of the Premises shall be payable by the Lessee as from the relevant review date until the next review
date but if such a determination has not been made before the relevant review date, the Lessee shall pay to the Lessor on account of the rent, amounts equal to the monthly rental payable for the last complete month immediately preceding the relevant
review date until such a determination has been made after 

  

 PAGE 31 OF 42 

 which the Lessee shall within 14 days of demand pay to the Lessor the difference between the monthly
instalments so determined and the amount paid from the relevant review date to the date of actual payment of any such adjustment. 
  

	(k)	Despite anything to the contrary, no determination of the annual rent pursuant to this Clause shall operate to reduce the rent payable below the annual rent payable by the Lessee in
the 12 months immediately prior to the relevant review date to the intent that the rent from and including the relevant review date will be the higher of: 

  

	 	(i)	the annual rent immediately before the relevant review date; and 

  

	 	(ii)	the amount determined pursuant to this Schedule 1A. 

  

	(l)	The expression “current market rent” means the best annual rent that can be reasonably obtained for the Premises and shall be determined having regard to the following
criteria; 

  

	 	(i)	that the Premises are available for leasing by a willing but not anxious Lessor to a - willing but not anxious Lessee for a term equal to the term of this lease and any option for
renewal; 

  

	 	(ii)	the terms and conditions contained in this Lease including obligations as to outgoings as well as the period until the next rent review takes place; 

  

	 	(iii)	that the Lessor’s and Lessee’s lease covenants and obligations shall have been fully performed at the relevant review date; 

  

	 	(iv)	having regard to the rental values of comparable Premises; 

  

	 	(v)	without taking into account the goodwill of the Lessee or any improvements or fixtures erected or installed at the Lessee’s expense (unless the Lessor has consented to them
remaining in the Premises on termination); 

  

	 	(vi)	without taking into account any reduction in rent on account of any concession otherwise required to secure a Lessee or any period of rent abatement; 

  

	 	(vii)	any use to which the Premises may lawfully be put; and 

  

	 	(viii)	in the event that the Premises or the Building are destroyed, assume that the Premises or the Building have been reinstated in accordance with this Lease. 

 

	(m)	all valuers as at the date of nomination must be full members of the said Institute and must have practiced as valuers of comparable Premises for not less than the past consecutive
5 years in the metropolitan area of Sydney and who are registered to practice as Valuers of the kind of Premises whose rent review is required under this Lease. All valuers shall act as experts and not as arbitrators and subject to above the
determination made pursuant to this Clause shall be final and binding on the parties. 

  

	(n)	The fees of the valuers and other costs of their determinations shall be borne:- 

  

	 	(i)	as to the fees of the valuer appointed by the Lessee, by the Lessee; 

  

	 	(ii)	as to the fees of the valuer appointed by the Lessor, by the Lessor; 

  

 PAGE 32 OF 42 

	 	(iii)	if both valuers are appointed by one party the fees of one shall be borne by that party and the fees of the other shall be borne by the other party as to which the firstnamed party
may choose; and 

  

	 	(iv)	as to the fees of the third valuer, equally by the Lessor and the Lessee. 

  

	(o)	Each party may deliver to the valuers written valuations and submissions prior to their determination but may not make oral submissions. At the time of delivering such valuations or
submissions that party shall deliver copies to the other party who may deliver to the valuers and to the other party written comments on the other parties’ written valuations and submissions. 

  

	(p)	The valuers shall take into consideration any written submissions so made but shall not be fettered by them and shall determine the current market rent in accordance with their own
judgment and opinion which they have formed having regard to the criteria specified in this clause and shall provide written reasons for their determination; 

  

	(q)	In the event that the Lessor fails for any reason to exercise its rights in accordance with subparagraph (a) to have the annual rent reviewed, .then such right shall be
exercised at any time prior to the next review date or the expiration of the term of the lease (whichever first occurs) and the current market rent shall be payable as and from the previous review date and any arrears payable by the Lessee in
respect of the period from the review date to the actual reassessment date shall be paid within 21 days after determination of the reviewed annual rent. No succeeding review date or right of reassessment of annual rent shall be postponed by reason
of the review of the annual rent pursuant to this subclause. 

  

	(r)	The Lessor and the Lessee each agree to act reasonably and to co-operate in implementing and conducting any rent review under this clause. 

  

	B.	Rent Review - Percentage Increase 

 The annual rent payable pursuant
to this Lease may be reviewed by the Lessor on each of the review dates referred to in the Reference Schedule and shall be the annual rent payable during the year immediately preceding the relevant review date increased by 3 %. 
  

 PAGE 33 OF 42 

 SCHEDULE 2 
 Outgoings 
  

	(a)	In addition to the annual rent, the Lessee must in respect of each year or part of a year during the term pay to or reimburse the Lessor as additional rent and without any deduction
whatsoever the Lessee’s proportion of the Lessor’s Outgoings relative to such year or part (“the Lessee’s proportion”) in accordance with this clause; 

  

	(b)	Subject to this subclause, the Lessee’s proportion shall be the percentage referred to in the Reference Schedule. Despite the foregoing: 

  

	 	(i)	if any one or more of the Lessor’s Outgoings are now or at any time separately assessed or wholly attributable to the Premises (whether by the Premises becoming a separate
allotment or otherwise) then the Lessee’s proportion will be increased to 100% of such outgoing(s) in lieu of the percentage referred to in the Reference Schedule but only in respect of the expenses which are separately assessed or payable in
respect of the Premises; and 

  

	 	(ii)	the Lessor may determine (acting reasonably and honestly), that in calculating the Lessee’s proportion, some items of the Lessor’s outgoings will be shared only between
some occupants or groups of occupants, because the other occupants and the Premises leased by them derive no benefit from the particular outgoing, in which case the Lessor shall fairly apportion the Lessee’s proportion on an area basis; and

  

	 	(iii)	the Lessor may at any time from the service of a notice on the Lessee, alter the Lessee’s Proportion so that it is the same proportion that the lettable area of the Premises
bears to the lettable area of the Building (expressed as a percentage). 

  

	(c)	Irrespective of the period for which they are levied, assessed or charged, the Lessor’s Outgoings shall be deemed to accrue from day to day and shall be apportioned in respect
of time accordingly. 

  

	(d)	“Lessor’s Outgoings” means all outgoings, costs, expenses and charges (now or during the term) properly assessed or assessable, charged or chargeable, paid or payable
(including costs incurred by the Lessor in undertaking activities which the Lessee has failed to do under this lease) or otherwise incurred upon or in respect of owning, managing, supervising, maintaining and keeping secure the Building, the Land,
and the Common Area and in particular but without limiting the general nature of these words, includes: 

  

	 	(i)	all rates, taxes, charges and assessments, duties, impositions at any time or from time to time levied or charged or payable to any government, local government, semi government or
other authority and any amount in the nature of an indirect tax including without limitation a goods and services tax or a value added tax imposed on the cost of the goods or services supplied or incurred by the Lessor in the control, management,
maintenance and ownership of the Land and/or the Building (but excluding Capital Gains Tax and Income Tax); 

  

 PAGE 34 OF 42 

	 	(ii)	all charges for, and costs in relation to, the supply of water, sewerage and the removal of all waste and other garbage; 

  

	 	(iii)	all other rates, taxes and assessments whether statutory or otherwise paid or payable by the Lessor (and in the case of land tax, at the rate assessed against the Lessor;

  

	 	(iv)	all premiums and associated and incidental costs payable by the Lessor in respect of insurances which the Lessor reasonably considers is appropriate to insure against in respect of
the building and the Lessor’s Property (including fall replacement and reinstatement, Public Risk, Workers’ Compensation, loss of rent and outgoings and removal of debris); 

  

	 	(v)	the cost of all services provided by the Lessor or by any Authority including electricity, gas, water, oil, telephone, sewerage and garbage services; 

  

	 	(vi)	management, control, caretaking and security costs of the Building whether performed at the land or elsewhere (including, salaries, leave entitlements, superannuation and other
employment overheads paid by the Lessor) equitably apportioned where any such person is engaged in respect of the land on less than a full time basis; 

  

	 	(vii)	all costs for or in connection with the cleaning, maintenance and upkeep including painting, repairs maintenance and landscaping; 

  

	 	(viii)	all costs associated with maintaining and servicing the Lessor’s Property including all air conditioning plant, sprinkler and fire protection equipment and other plant and
services including the cost of water treatment and legionella tests (except to the extent they are maintained and serviced by the Lessee pursuant to this lease or any other occupant); 

  

	 	(ix)	landscaping and the cost of items usually supplied hi washrooms and toilets; 

  

	 	(x)	existing or future levies, charges and contributions imposed under strata, community or similar legislation including administrative and sinking funds and special and ordinary
levies (except levies for structural repairs of the Building unless caused by the Lessee); 

  

	 	(xi)	all parking space levies payable to any authority in respect of any car parking spaces; and 

  

	 	(xii)	any other expenses properly and reasonably incurred in the supervision, maintenance and/or keeping secure the Building and/or the Land. 

  

	(e)	The following are excluded from constituting Lessor’s Outgoings and the Lessee is not required to contribute to: 

  

	 	(i)	any liability or expenditure paid by the Lessee under some other provision of this Lease; 

  

	 	(ii)	any liability or expenditure payable by or recoverable from some other lessee or lessees of the Building or from any other person; or 

  

	 	(iii)	any liability or expenditure recoverable by the Lessor through insurance. 

  

	(f)	Before the date set out in the Reference Schedule in each year of the term or such other date selected by the Lessor and notified to the Lessee and from time to time, the Lessor
will furnish to the Lessee a statement giving reasonable details of the Lessor’s Outgoings and indicating the amount of the Lessee’s proportion. 

  

 PAGE 35 OF 42 

	(g)	Except in the case of manifest error notified by either party to the other within twenty-one (21) days of the service of such statement on the Lessee, such statement shall be
conclusive evidence of the matters stated. 

  

	(h)	Subject to subclause (l), within 14 days after service of such statement on the Lessee, the Lessee must pay*to the Lessor the Lessee’s proportion.

  

	(i)	The liability of the Lessee shall not be determined or otherwise prejudiced by the prior expiry of the term of or other determination of this Lease. 

  

	(j)	Despite the above, where any rate or tax assessment in respect of the Lessor’s Outgoings has not issued for any rating or taxing period, the Lessor may notify the Lessee of the
reasonable estimate of the Lessee’s proportion of such rate or tax for the period from the date of commencement of the rating or taxing period to the said date of expiration or sooner determination of the Lease, and the Lessee will pay such
estimated proportion within 14 days of request. 

 Upon issue of the relevant assessment any necessary adjustment between the
estimated and actual amount of the Lessee’s proportion shall be made and any refund to or further payment by the Lessee shall be allowed or made by or to the Lessor accordingly; 
  

	(k)	Upon receipt of any assessments) in respect of part of the Lessor’s Outgoings, the Lessor may calculate the Lessee’s Proportion in respect of such Outgoings and forward a
request to the Lessee in writing for payment accompanied by a statement as to the amount of the Lessee’s proportion together with reasonable details and the Lessee must pay the amount within 14 days of being so requested.

  

	(l)	Despite anything to the contrary, from time to time the Lessor may notify the Lessee of the Lessor’s reasonable estimate of the Lessee’s proportion for any period not
exceeding one (1) year in advance of the estimate and the Lessee must pay to the Lessor during such period such estimated proportion by equal monthly instalments in advance on the days fixed for payment of rent. 

  

	(m)	When the Lessor’s Outgoings at the end of the then current year have been calculated, any necessary adjustment between the estimated and actual amount of the Lessee’s
proportion shall be made and any further payment owing by the Lessee shall be made within 14 days of request and any overpayment by the Lessee will be credited towards future outgoings payable by the Lessee or refunded to where the lease has
expired; 

  

	(n)	In addition to the outgoings payable by the Lessee pursuant to this Schedule, the Lessee will also pay all management fees and commission (based on the rental and outgoings payable)
to cover the Lessor’s reasonable costs of managing the Premises (including fees paid by the Lessor to any managing agents). 

  

	(o)	The Lessor must upon request and upon reasonable notice, permit the Lessee or its authorised representatives to examine all records relating to the Outgoings so as to enable the
Lessee to verify any statement of the Outgoings. 

  

	(p)    (i)	If there is any dispute between the parties relating to the meaning or operation of this Schedule or the inclusion or exclusion of any item in the calculations, or the proportion
attributed to the Premises, the dispute shall be determined in accordance with this clause. 

  

 PAGE 36 OF 42 

	 	(ii)	The dispute shall be determined by a Chartered Accountant agreed on by the parties or, failing agreement, nominated by the President for the time being of the New South Wales
Division of the Institute of Chartered Accountants in Australia (or if it ceases to exist an organisation with similar objects) (called “nominee”) at the request of either party. 

  

	 	(iii)	The nominee shall act as an expert and not as an arbitrator and his decision shall be final and binding on the parties. 

  

	 	(iv)	Each party may make written submissions to the nominee within 28 days after the nominee has agreed to act. 

  

	 	(v)	The parties shall equally share the nominee’s costs. 

  

	 	(vi)	The nominee shall provide the parties with written reasons for the determination. 

  

 PAGE 37 OF 42 

 SCHEDULE 3 
 Rules and Regulations 
  

	1.	The Lessee must not in any way obstruct or prevent other occupants from using the Common Area. 

  

	2.	The Lessee must not in any way cover or obstruct any light skylights windows or other means of illumination of the Premises or of the Building generally. 

 

	3.	The Lessee must not throw any article or substance whatsoever from or out of the Premises or the Common Area. 

  

	4.	The Lessee must keep clean and free of rubbish such parts of the Common Area or any public footpath as immediately adjoin the Premises. 

  

	5.	The Lessee must use its best endeavours to protect and keep safe the Premises and its contents from theft or robbery and shall keep all doors windows and other openings closed and
securely fastened when the Premises are not in use. 

  

	6.	The Lessee must not permit the keys for locks on doors and other openings to or in the Premises to come into possession or control of any person other than the Lessee.

  

	7.	No rubbish or waste must at any time be burned upon the Premises or the Common Area. 

  

	8.	All blinds shades awnings windows ventilators and other similar fittings and fixtures installed by the Lessee with the consent of the Lessor in or upon the Premises and visible from
outside the Premises must conform to the reasonable requirements and standards of the Lessor as to design quality and appearance. 

  

	9.	The water closets conveniences and other water apparatus used either exclusively by the Lessee or in common with other Lessees must not be used for any purposes other than those for
which they were constructed and no sweepings rubbish rags ashes or other unsuitable substances shall be thrown therein. Any damage resulting to such water closets conveniences and apparatus from misuse by the Lessee shall be made good by the Lessee.

  

	10.	Only such parts of the Common Area as are designated for visitor parking or pick up and delivery of goods may be used for such purposes. 

  

	11.	The Lessee and the Lessee’s employees and agents may park any vehicle owned or operated by them in the parking area (if any) allotted or set aside to them during business hours
and no such vehicle may be parked in or obstruct any other area of the Common Area. 

  

	12.	The Lessee and the Lessee’s employees and agents must not obstruct grease oil repair clean or wash motor vehicles within the Common Area. 

  

	13.	The Lessee must make good any damage caused to the car parking area used by the Lessee through its neglect default or misconduct. 

  

 PAGE 38 OF 42 

	14.	The Premises must not be or remain open for business at or during any time or times prohibited by law for that class of Premises or for the business carried on by the Lessee.

  

	15.	The Lessee and its employees and agents must at all times abide by any speed limit set for the driving of motor vehicles upon the Land. 

  

	16.	The Lessee must not use the Common Area for any business or commercial purpose or the display or advertisement of any goods or services or generally for any purpose other than for
which the Common Area was intended. 

  

	17.	No part of the Common Area or any car parking area allocated or set aside for the Lessee may be used for storage of pallets, containers or any other goods whatsoever. Any such items
must only be stored within the confines of the Premises if so permitted by this lease and by the appropriate authorities. 

  

	18.	No television or radio mast or antenna shall be affixed to any part of the Premises and no musical instrument, gramophone, radio, amplifier, television, audio visual or other sound
or picture producing equipment shall be used or operated in the Premises without the Lessor’s consent unless such equipment is not audible or visible from outside the Premises. 

  

	19.	No animal, fish, reptiles or birds shall be kept in or about the Premises. 

  

	20.	All rubbish and waste products are to be placed in the proper receptacles and regularly removed by the Lessee. 

  

	21.	The Lessee must observe the recommended maximum load weights throughout the Premises and the Building. 

  

	22.	On the date, the Lessee must vacate the Premises, the Lessee must give the Lessor all keys, access cards and similar devices for the Premises and the Building

  

	23.	the Lessee shall cause all exterior doors and windows in the Premises to be securely locked and fastened at all times when the Premises are not occupied and authorises the Lessor or
any agent or employee of the Lessor to enter the Premises whenever necessary for the purpose of locking any such door or window left unlocked or unfastened. 

  

 PAGE 39 OF 42 

 REFERENCE SCHEDULE 
  

	1.	Land (Clause 2) 

 The property known as 8-10 Rodborough
Road, Frenchs Forest and being the whole of the land in Folio Identifier 2/737438. 
  

	2.	Demised Premises (Clause 2) 

 Unit 2, 8 - 10 Rodborough
Road, Frenchs Forest having an area of approximately 1,410.80 square meters as identified on the plan exhibited to the parties and signed by them at the time of entering into this Lease. 
  

	3.	Rental (Clause 3) 

 $262,578.18 payable at the rate of
$21,876.51 monthly in advance. 
  

	4A	Review Dates (Clause 3 and Schedule 1A) - Current Market Rent 

 during initial term: 
 Not Applicable 
 if option to renew is exercised: 
 At the commencement of the option term 
  

	4B	Rent Review Dates (Clause 3 and Schedule IB) - 3% 

 during
initial term: 
 On each and every anniversary of the commencement date, except at the commencement of the fifth year. 
 if option to renew is exercised: 
 On each and
every anniversary of the commencement date 
  

	5.	Description of Lessee’s Use of Premises (Clause 6.1) 

 Commercial offices, and/or warehousing and facility for research and development, and/or manufacture and supply of biomedical and medical devices. 
  

	6.	Redecoration Dates (Clause 7.4) 

 during initial term:

 Within three (3) months prior to the expiration of lease 
 If option to renew is exercised: 
 Within three (3) months prior to the expiration of option term

  

 PAGE 40 OF 42 

	7.	Public Liability Insurance (Clause 9.1) 

 $20,000,000

  

	8.	Car Parking (Clause 17): 

 30 motor vehicles

  

	9.	Bank Guarantee (Clause 18): 

 6 months 
  

	10.	Option Term (Clause 19) 

 Five (5) years

  

	11.	Lessee’s Proportion of Lessor’s Outgoings (Schedule 2) 

 16.59% 
  

	12.	Date for Calculation of Lessee’s Proportion of Lessor’s Outgoings (Schedule 2) 

 30th June in each year of the term. 
  

 PAGE 41 OF 42 

					
	I certify that the person(s) signing opposite, with whom I am personally acquainted or as to whose identity I am otherwise satisfied, signed this instrument in my presence.	 		 	Certified correct for the purposes of the Real Property Act 1900 by the person(s) named below who signed this instrument pursuant to the Power of Attorney specified.
			
	 /s/ Evie Rozali
	 		 	 /s/ Simon Thomas Hindson

	Signature of Witness	 		 	Signature of Attorney
			
	 Evie Rozali
	 		 	 Simon Thomas Hindson

	Name of Witness	 		 	Attorney’s Name
			
	 35 Clarence ST, Sydney
	 		 	  

	Address of Witness	 		 	 Signing on behalf of
 TRUST COMPANY OF AUSTRALIA
LIMITED

		 		 	
		 		 	Power of Attorney – Book. 4279 No. 670
			
	 Certified correct for the purposes of the Real Property Act 1900 on behalf of the corporation named below by the authorised person(s) whose
signature(s) appear(s) below pursuant to the authority specified.
 Corporation: PHARMAXIS LTD
 Authority: s127 Corporations Act
	 		 	Certified correct for the purposes of the Real Property Act 1900 by the Tenant.
			
	 /s/ David McGarvey
	 		 	 /s/ Alan D. Robertson

	Signature of Director/Secretary (delete one)	 		 	Signature of Director
			
	 David McGarvey
	 		 	 /s/ Alan D. Robertson

	Name of Director/Secretary	 		 	Name of Director

  

 PAGE 42 OF 42 

 THIS IS THE EXHIBIT COMPRISING THE LOCATION PLAN OF THE PREMISES AND THE FITOUT PLAN OF THE PREVIOUS TENANT
RESPECTIVELY REFERRED TO IN ITEM 2 OF THE REFERENCE SCHEDULE AND CLAUSE 27 OF THE LEASE REFERRED TO IN THE LEASE BETWEEN TRUST COMPANY OF AUSTRALIA LIMITED (AS LESSOR) AND PHARMAXIS LIMITED (AS LESSEE). 
 Dated this 22nd day of August 2006.

  

	
	

	For and on behalf of the Lessor

  

			
	

	 	

	For and on behalf of the LesseeAmended and Restated Lease Agreement

 AMENDED AND RESTATED LEASE AGREEMENT 
 BY AND BETWEEN 
 ROYAL CENTER IC, LLC 
 (AS LANDLORD) 
 AND 
 INSPIRE PHARMACEUTICALS, INC. 
 (AS TENANT)

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	 1.
	 	 BASIC LEASE TERMS
	  	1
	 2.
	 	 DESCRIPTION OF PREMISES
	  	3
	 3.
	 	 TERM; COMMENCEMENT DATE
	  	3
	 4.
	 	 RENTAL
	  	4
	 5.
	 	 ALTERATIONS AND IMPROVEMENTS BY TENANT
	  	9
	 6.
	 	 USE OF PREMISES
	  	9
	 7.
	 	 TAXES ON LEASE AND TENANT’S PROPERTY
	  	11
	 8.
	 	 FIRE AND EXTENDED COVERAGE INSURANCE
	  	11
	 9.
	 	 LANDLORD’S COVENANT TO REPAIR AND REPLACE
	  	12
	 10.
	 	 TENANT’S COVENANT TO REPAIR
	  	13
	 11.
	 	 TRADE FIXTURES AND EQUIPMENT
	  	14
	 12.
	 	 UTILITIES
	  	14
	 13.
	 	 DAMAGE OR DESTRUCTION OF PREMISES
	  	15
	 14.
	 	 GOVERNMENTAL ORDERS
	  	15
	 15.
	 	 MUTUAL WAIVER OF SUBROGATION
	  	16
	 16.
	 	 SIGNS AND ADVERTISING
	  	16
	 17.
	 	 INDEMNIFICATION AND LIABILITY INSURANCE
	  	17
	 18.
	 	 LANDLORD’S RIGHT OF ENTRY
	  	18
	 19.
	 	 EMINENT DOMAIN
	  	18
	 20.
	 	 EVENTS OF DEFAULT AND REMEDIES
	  	19
	 21.
	 	 SUBORDINATION
	  	20
	 22.
	 	 ASSIGNMENT AND SUBLETTING
	  	21
	 23.
	 	 TRANSFER OF LANDLORD’S INTEREST
	  	22
	 24.
	 	 COVENANT OF QUIET ENJOYMENT
	  	22
	 25.
	 	 ESTOPPEL CERTIFICATES
	  	22
	 26.
	 	 PROTECTION AGAINST LIENS
	  	22
	 27.
	 	 MEMORANDUM OF LEASE
	  	23
	 28.
	 	 LANDLORD’S LIEN
	  	23
	 29.
	 	 FORCE MAJEURE
	  	23
	 30.
	 	 REMEDIES CUMULATIVE — NONWAIVER
	  	23
	 31.
	 	 HOLDING OVER
	  	23
	 32.
	 	 NOTICES
	  	24
	 33.
	 	 LEASING COMMISSION
	  	24
	 34.
	 	 LANDLORD DEFAULT
	  	24
	 35.
	 	 MISCELLANEOUS
	  	25
	 36.
	 	 SEVERABILITY
	  	28
	 37.
	 	 REVIEW OF DOCUMENTS
	  	28
	 38.
	 	 RIGHT OF FIRST OFFER
	  	29

  

 i 

 STATE OF NORTH CAROLINA 
 AMENDED AND RESTATED LEASE AGREEMENT 
 COUNTY OF DURHAM 
 THIS AMENDED AND RESTATED LEASE AGREEMENT (the “Lease”) made and entered into as of the 30th day of November, 2006, by and between ROYAL CENTER IC, LLC, a Delaware limited liability company, hereinafter called “Landlord”; and INSPIRE
PHARMACEUTICALS, INC., a Delaware corporation, hereinafter called “Tenant”. This Lease is intended by Landlord and Tenant to be an amendment and restatement of that certain lease for the Premises dated as of May 17, 1995, as amended
(the “Original Lease”), by and between Landlord, as successor in interest to Imperial Center Limited Partnership and Tenant, which Original Lease shall be deemed null and void as of the Commencement Date of this Lease except for any
obligations accruing thereunder prior to the Commencement Date. 
 W I T N E S S E
T H: 
 In consideration of the mutual covenants and agreements contained herein, the parties hereto agree for themselves,
their successors and assigns, as follows: 
 1. BASIC LEASE TERMS. 
 The following terms shall have the following meanings in this Lease: 
 (a) Premises: Approximately 31,320 rentable square feet of office and laboratory space within the Building, as more particularly described on the floor plan attached hereto as Exhibit “A-1”.

 (b) Building: Royal Center I, located at 4222 Emperor Blvd., Durham, North Carolina. 
 (c) Business Park: Imperial Center Business Park. 
 (d) Common Areas: All areas of the Building or the Business Park available for the common use or benefit of all tenants primarily or to the public generally, including without limitation, parking areas,
driveways, sidewalks, loading docks, elevators and stairwells (if applicable), entrances, public restrooms, mechanical rooms, janitorial closets, telephone rooms, mail rooms, electrical rooms, and other similar areas of the Building providing for
building systems, and any other common facilities furnished by Landlord from time to time. 
 (e) Commencement Date: December 1,
2006. 
 (f) Term; Expiration Date: The “Term” of this Lease shall be four (4) years and two (2) months commencing
as of the Commencement Date and, subject to Tenant’s right to extend the Term in accordance with Exhibit “E” attached hereto, expiring on the fiftieth (50th) month anniversary of the Commencement Date (the “Expiration Date”). 
 (g) Minimum Rental: Provided no Tenant default has occurred and is continuing hereunder beyond any applicable cure period, Tenant shall have no
obligation for the 
  

 payment of Minimum Rental or Additional Rent from the Commencement Date through the two (2) month anniversary of the
Commencement Date (the “Rent Commencement Date”). Accordingly, beginning on the Commencement Date and continuing throughout the Term, Tenant shall pay Minimum Rental as set forth hereinbelow (subject to adjustment as provided in
Section 2): 
  

							
	 Period
	  	 Rate
	  	 Monthly Rent
	  	 Annual Rent

	 12/1/06 —1/31/07
	  	$0.00	  	$0.00	  	$0.00
	 2/1/07 – 1/31/08
	  	$11.25	  	$29,362.50	  	$352,350.00
	 2/1/08 – 1/31/09
	  	$11.59	  	$30,249.90	  	$362,998.80
	 2/1/09 – 1/31/10
	  	$11.94	  	$31,163.40	  	$373,960.80
	 2/1/10 – 1/31/11
	  	$12.30	  	$32,103.00	  	$385,236.00

 (h) Tenant’s Proportionate Share: A fraction, the numerator of which shall be the number of
rentable square feet within the Premises and the denominator of which shall be the number of rentable square feet within the Building, currently estimated to be 72.68% (31,320 ÷ 43,092). Provided however, the rentable square feet of the
Building as of the Commencement Date shall not decrease below 41,000 rentable square feet during the Term, as extended. 
 (i)
Tenant’s Estimated Share of Tenant Expenses: On the Commencement Date and on the first day of each month thereafter until Landlord provides Tenant with an updated estimate of Tenant’s Proportionate Share of Tenant Expenses, Tenant
shall pay in advance a monthly installment of Six Thousand Two Hundred Eleven and 80/100 Dollars ($6,211.80) which amount represents an estimate of Tenant’s Proportionate Share of Tenant Expenses calculated at $2.38 per rentable square foot of
the Premises. 
 (j) Notice Addresses: 
  

					
		 	 Landlord:
	  	Royal Center IC, LLC
		 		  	c/o Tri Properties, Inc.
		 		  	4309 Emperor Boulevard, Suite 110
		 		  	Durham, North Carolina 27703
			
		 	 Tenant:
	  	Inspire Pharmaceuticals, Inc.
		 		  	4222 Emperor Blvd., Suite 470
		 		  	Durham, NC 27703-8466

 (k) Security Deposit: None. 
 (l) Broker(s): Tri Properties, Inc. and Colliers Pinkard. 
 (m) Guarantor: None. 
 (n) Parking: Tenant shall have the right to the non-exclusive use of
2.95 unreserved parking spaces per 1,000 rentable square feet of the Premises in the surface parking areas adjacent to the Building which constitutes a portion of the Common Areas in common with the other tenants of the Building, such use in no
event to unreasonably interfere with the use of such parking spaces by other tenants of the Business Park. 

 2. DESCRIPTION OF PREMISES. 
 Landlord hereby leases to Tenant, and Tenant hereby accepts and rents from Landlord, the Premises, together with the nonexclusive right to use all driveways, parking areas, sidewalks and other common facilities
furnished by Landlord from time to time; provided, however, in no event shall Tenant’s usage of the surface parking spaces adversely impact the use and enjoyment of the parking areas by other tenants of the Building or exceed the parking rights
set forth in Section 1(n) herein. Prior to the Commencement Date, Landlord may have its architect or engineer measure the actual total square footage of the Premises as measured from the centerline of the demising wall to the drip line and
Landlord shall immediately provide Tenant with a copy of such new measurement once Landlord receives the measurement from its architect or engineer. In the event the Premises shall contain an amount of square footage different than the amount of
square feet referenced in Section 1(a) above, the Premises shall be redefined to reflect the actual square footage and the Annual Rental (as hereinafter defined) shall be proportionately adjusted based on the actual square footage multiplied by
the applicable square foot rental rate (and such adjustment shall relate back to the Commencement Date if there is a variance). The reasonable cost of such measurement shall be borne by Landlord. 
 Notwithstanding the foregoing, Landlord and Tenant acknowledge that Tenant currently occupies the Premises and Tenant hereby accepts the Premises in its
“as-is, where-is” condition, except as hereinafter provided. Landlord shall have no obligation for any improvements to the Premises except for the following matters which shall be completed by Landlord, at Landlord’s sole cost and
expense, within ninety (90) days after the date hereof: (a) power wash the exterior of the Building, (b) strip and re-paint the truck court stairs and railings, (c) revise and upgrade the Business Park’s directory signage in
a manner substantially similar to the signage depicted on Exhibit “F” attached hereto and incorporated herein by reference, and (d) install a right turn directional arrow in front of Suite 275 of the Royal Center II building in
the Business Park in order to direct traffic to the suite entrance of the Premises. 
 3. TERM; COMMENCEMENT DATE. 
 (a) Term. 
 Unless otherwise adjusted
as hereinbelow provided, the Term shall commence on the Commencement Date and shall expire on the Expiration Date. As used herein, the term “Lease Year” shall mean each consecutive twelve-month period of the Term, beginning with the
Commencement Date. 
 (b) [Intentionally deleted.] 
 (c) Tenant Improvement Allowance. Prior to the Commencement Date and during Tenant’s continuing occupancy of the Premises, Landlord shall supervise the design, construction and installation of certain
additional improvements in the Premises (the “Tenant Improvements”) in accordance with the Plans (as hereinafter defined) and the following terms 

 and conditions. Tenant’s engineer, contractor, and/or architect shall, at Tenant’s sole cost and expense (as
part of the Allowance (as hereinafter defined)), prepare the plans for the design, construction and installation of the Tenant Improvements (the “Plans”) which shall be subject to Landlord’s prior written approval, such approval not
to be unreasonably withheld, and said engineer and contractor shall construct such Tenant Improvements in accordance with the Plans. The final Plans, as reviewed and approved by Landlord and Tenant, shall be attached hereto as
Exhibit “C.” 
 Landlord shall contribute Four and 50/100 Dollars ($4.50) per rentable square foot of the Premises (the
“Allowance”) toward only the following costs: (i) any cost of installing the Tenant Improvements on an “as completed” basis which is performed in accordance with the Plans and related to the work to be done for the purpose
of preparing the Premises for Tenant’s occupancy and use, (ii) the cost of preparing the Plans, (iii) design costs for architectural, mechanical, plumbing and electrical design, (iv) construction documents and permits, and
(v) a construction management fee equal to four percent (4.0%) of the total cost of constructing the Tenant Improvements to be paid to Landlord, which total cost of constructing Tenant Improvements shall not include the design costs for
architectural, mechanical, plumbing and electrical design; provided, however, Tenant may elect to use a portion of the Allowance for costs associated with Tenant’s telephone and data cable lines installed in the Premises to which a construction
management fee shall not be applied. In the event that either prior to the commencement of the installation of the Tenant Improvements or at any time during or following the installation of the Tenant Improvements, the cost of the Tenant
Improvements exceeds the Allowance or Tenant requests any change to the aforementioned Plans which has resulted or might result in an increase in the cost of the installation of such Tenant Improvements so that the cost exceeds the Allowance, then
Tenant shall be responsible for promptly paying such increased costs within thirty (30) days after Landlord demands same. Notwithstanding the foregoing, any change order(s) requested by Tenant which will result in an increase in the cost of the
construction and installation of the Tenant Improvements shall be agreed to in advance by Landlord and Tenant. 
 In no event shall Landlord
have any obligation to disburse any portion of the Allowance after the one year anniversary of the Commencement Date. Notwithstanding the foregoing, Tenant shall have the right to apply any unused portion of the Allowance (not to exceed Twenty-Nine
Thousand Three Hundred Sixty-Two and 50/100 Dollars ($29,362.50)) to one (1) monthly installment of Minimum Rental coming due hereunder at any time prior to November 30, 2007. Any savings or unused portion of the Allowance after the Tenant
Improvements are completed and after the application of one (1) months Minimum Rental (as hereinabove provided) shall be retained by Landlord. 
 4. RENTAL. 
 During the Term, Tenant shall pay to Landlord at the following address, P.O. Box 6113, Property #410017, Hicksville, NY
11802-6113, without notice, demand, reduction (except as may be applicable pursuant to the paragraphs of this Lease entitled “Damage or Destruction of Premises” or “Eminent Domain”), setoff or any defense, a total rental (the
“Annual Rental”) consisting of the sum total of the following: 

 (a) Minimum Rental. Beginning with the Commencement Date and continuing through the Expiration
Date or earlier termination of this Lease, Tenant shall pay Minimum Rental in accordance with the schedule set forth in Section 1(g) in equal monthly installments each in advance on or before the first day of each month. If the Commencement
Date is a date other than the first day of a calendar month, the Minimum Rental shall be prorated daily from such date to the first day of the next calendar month and paid on or before the Commencement Date. 
 (b) Additional Rental. [Intentionally Deleted] 
 (c) Tenant’s Share of Taxes. Tenant shall pay an amount equal to Tenant’s Proportionate Share (as defined in Section 1 (h)) of any ad valorem taxes (or any tax hereafter imposed in lieu thereof)
and related assessments (which are currently due and payable) imposed upon the Building and the Premises together with the Tenant’s Proportionate Share of the actual, reasonable costs associated with contesting such taxes and assessments.
Tenant’s Proportionate Share of taxes shall be paid as provided in subparagraph (f) below. Provided, any increase in ad valorem taxes on the Premises as a result of alterations, additions or improvements made by, for or on account of
Tenant shall be reimbursed by Tenant to Landlord within thirty (30) days after receipt of Landlord’s written demand to Tenant therefor. Notwithstanding anything contained herein to the contrary, in the event the actual amount of ad valorem
taxes becomes known to Landlord prior to the expiration of a particular calendar year, Landlord may elect to adjust the amount of Tenant’s estimated share of ad valorem taxes so as to collect from Tenant (and all other tenants) the full amount
of ad valorem taxes due and payable for such calendar year prior to such taxes becoming delinquent. In the event Landlord has elected not to contest ad valorem taxes for a particular year and Tenant provides reasonable proof to Landlord that such a
contest would prevail, then Landlord and Tenant shall work in good faith with each other to determine if Landlord should contest the ad valorem taxes for the year in question. 
 (d) Tenant’s Share of Insurance Premiums. Tenant shall pay an amount equal to Tenant’s Proportionate Share of any premiums charged for
fire and extended coverage and liability insurance with all endorsements carried by Landlord on the Building payable for any calendar year (including any applicable partial calendar year), provided such premiums are not a direct result of another
tenant’s use of its premises in the Building. Tenant’s Proportionate Share of premiums shall be paid as provided in subparagraph (f) below. 
 (e) Tenant’s Share of Common Area Operating and Maintenance Costs. Tenant shall pay an amount equal to Tenant’s Proportionate Share of (i) the reasonable costs for operating, repairing and
maintaining the Building’s Common Areas, including, but not limited to, building management costs (including management fees which shall be consistent with customary management fees in the Raleigh/Durham area), the cost of grass mowing, shrub
care and general landscaping, garbage collection and disposal, snow removal, irrigation systems, maintenance and repair to parking and loading areas (including storage of materials), driveways, sidewalks, exterior lighting, common water and sewer,
common plumbing, common signs and other facilities shared by the various tenants in the Building, the costs of all capital improvements, repairs or equipment to the Building which are either required under any governmental law or regulation which
was not applicable to the Building as of the Commencement Date or which reduce Common Area operating and maintenance costs (provided 

 that the cost of any such capital improvements, repairs or equipment shall be amortized on a straight line basis over the
useful life of such improvements, repairs or equipment), and (ii) the Building’s share of the Common Area operating and maintenance costs for the entire Business Park, including without limitation, the reasonable costs and expenses
associated with the maintenance and operation of Business Park amenities made available for the common use and enjoyment of the tenants of the Business Park from time to time (the items described in sub-paragraphs (i) and (ii) are
collectively referred to as “Common Area Expenses”). Landlord shall use good faith efforts to keep the operating and maintenance costs in line with costs for other similarly situated buildings in the Raleigh/Durham market, taking into
account rent and other relevant factors. Tenant’s proportionate share shall be paid as provided in subparagraph (f) below. Notwithstanding the foregoing, the Controllable Common Area Expenses (as hereinafter defined) which may be passed
through to Tenant under this Section 4 shall not increase in any Lease Year by an amount which exceeds five percent (5%) of such Controllable Common Area Expenses for the immediately preceding Lease Year (as measured on a cumulative and
compounded basis). For purposes hereof, “Controllable Common Area Expenses” shall be deemed to include all Common Area Expenses other than utilities (e.g., electricity, gas, water and sewer), insurance, taxes, snow removal and any other
expenses which are set or determined by a governmental entity or other third party or are otherwise beyond Landlord’s reasonable control. For purposes hereof, the expenses identified in subparagraphs (c), (d) and (e) of this Section
shall be deemed the “Tenant Expenses.” 
 Notwithstanding anything contained in this Lease to the contrary, Common Area Expenses
shall not include: any costs properly classified as capital costs, or any amortization thereof except as otherwise expressly provided above; costs incurred in connection with the original construction or expansion of the Building, including any
interest or payments on any financing; cost of correcting defects in the initial design or construction of the Building or expansion; any costs or expenses incurred by Landlord in bringing the property or building, or any portion thereof, into
compliance with any applicable federal, state or local statutes, codes, ordinances or rules in effect as of the Commencement Date; costs relating to the restoration and/or repair obligations of Landlord with respect to the Building or the Premises
as set forth in Section 9 or as a result of condemnation or casualty; reserves for anticipated future expenses; legal fees; leasing commissions; any items for which Landlord is reimbursed by insurance; any bad debt loss, rent loss or reserves
for bad debts or rent loss; the cost of providing specialized services (not offered generally to all tenants of the Building), improvements or upfit specifically for individual tenants; all interest or penalties incurred as a result of
Landlord’s failure to pay any bill as it shall become due; the cost of leasing any capital item whose purchase price would not be included in reimbursable expenses hereunder; any cost related to the operation of Landlord as an entity rather
than the operation of the building including the cost and formation of the entity, internal accounting, legal matters, preparation of tax returns; marketing costs; and costs related to remediation or cleanup of Hazardous Materials as to all or a
portion of the Building or the Premises. 
 (f) Payment of Proportionate Shares. Tenant shall pay to Landlord in advance each month,
along with Tenant’s installments of Minimum Rental (and Additional Rental, if applicable), a sum equal to one-twelfth (1/12) of the amount estimated by Landlord (in its reasonable discretion) as Tenant’s Proportionate Share of the
Tenant Expenses for each calendar year, as currently estimated in Section1(i) herein. Landlord will make reasonable efforts 

 to provide Tenant with Landlord’s estimate of Tenant’s Proportionate Share of Tenant Expenses for the upcoming
calendar year on or before December 15 of each calendar year during the Term hereof. Not more than twice during any calendar year, Landlord may in good faith revise Tenant’s Proportionate Share of the Tenant Expenses and upon Tenant’s
receipt of a revised statement, Tenant shall pay Tenant Expenses on the basis of such revised statement. If Landlord fails to notify Tenant of the revised amount of Tenant’s Proportionate Share of Tenant Expenses by such date, Tenant shall
continue to pay the monthly installments of the proportionate share amount, if any, last payable by Tenant until notified by Landlord of such new estimated amount. No later than May l of each calendar year of the Term, Landlord shall deliver to
Tenant a written statement setting forth the actual amount of Tenant’s Proportionate Share of Tenant Expenses for the preceding calendar year. Tenant shall pay the total amount of any balance due shown on such statement within thirty
(30) days after its delivery. In the event such annual costs decrease for any such year, Landlord shall reimburse Tenant for any overage paid and the monthly rental installments for the next period shall be reduced accordingly, but not below
the Minimum Rental, and such payment obligation of Landlord shall survive the expiration or early termination of this Lease. For the calendar year in which this Lease commences, the proportionate shares of such amounts shall be prorated from the
Commencement Date through December 31 of such year. Further, Tenant shall be responsible for payment of Tenant’s Proportionate Share of Tenant Expenses for the calendar year in which the Term expires, prorated from January 1 thereof
through the Expiration Date. Upon the Expiration Date, Landlord may elect to require Tenant to pay any unpaid estimated proportionate shares within thirty (30) days after the Expiration Date, which estimate shall be made by Landlord based upon
actual and estimated costs for such year, or (ii) to withhold the Security Deposit until the exact amount payable by Tenant is determinable, at which time Tenant shall promptly pay to Landlord any deficiencies or Landlord shall return any
excess Security Deposit to Tenant. 
 Tenant may audit Landlord’s records and all information pertaining to Tenant Expenses in order to
verify the accuracy of Landlord’s determination of Tenant’s proportionate share of same provided that: 
 (i) Tenant must give
notice to Landlord of its election to undertake said audit within one hundred twenty (120) days after receipt of the statement of the actual amount of Tenant’s proportionate share for the preceding calendar year from Landlord; 

(ii) Such audit will be conducted only during regular business hours at the office where Landlord maintains records of Tenant Expenses and only after
Tenant gives Landlord fourteen (14) days’ advance written notice; 
 (iii) Tenant shall deliver to Landlord a copy of the results
of such audit within fifteen (15) days of its receipt by Tenant and no such audit shall be conducted if any other tenant of the Building has conducted an independent audit for the time period Tenant intends to audit and Landlord furnishes to
Tenant a copy of the results of such audit; 
 (iv) No audit shall be conducted at any time that Tenant is in default of any of the terms of
this Lease; 

 (v) No subtenant shall have any right to conduct an audit and no assignee shall conduct an audit for any
period during which such assignee was not in possession of the Premises; and 
 (vi) Such audit review by Tenant shall not postpone or alter
the liability and obligation of Tenant to pay any amounts due under the terms of this Lease. 
 Within thirty (30) days after
Tenant’s receipt of such audit, Tenant must give notice to Landlord of any disputed amounts and identify all items being contested in Landlord’s statement of Tenant’s proportionate share of Tenant Expenses. If Landlord and Tenant
cannot agree upon any such item as to which Tenant shall have given such notice, the dispute shall be resolved by an audit by a major accounting firm mutually acceptable to Landlord and Tenant and the cost of said audit shall be paid by the
non-prevailing party; provided however, Tenant will not be considered the “prevailing party” for purposes of this paragraph unless the accounting firm’s audit reveals an overcharge by Landlord in excess of five percent (5%) of
Tenant’s proportionate share of Tenant Expenses for the particular calendar year in question. 
 Any adjustment required as a result of
any audit shall be made by adjustment to Tenant’s proportionate share of Tenant Expenses so that said adjustment is fully made (or recovered) in equal installments over the twelve (12) month period immediately following the final
resolution of said audit. Landlord and Tenant’s repayment obligations as set forth herein shall survive the expiration or early termination of this Lease. 
 (g) Documentary Tax. 
 In the event that any documentary stamp tax, sales tax or any other tax or
similar charge (exclusive of any income tax payable by Landlord as a result hereof) becomes applicable to the rental, leasing or letting of the Premises, whether local, state or federal, and is required to be paid due to the execution hereof or
otherwise with respect to this Lease or the payments due hereunder, the cost thereof shall be borne by Tenant and shall be paid promptly and prior to same becoming past due. Tenant shall provide Landlord with copies of all paid receipts respecting
such tax or charge promptly after payment of same. 
 (h) Late Payment. 
 If any monthly installment of Minimum Rental, Additional Rental (if any) or any other sum due and payable pursuant to this Lease remains due and unpaid
ten (10) days after said amount becomes due, Tenant shall pay as additional rent hereunder a late payment charge equal to the greater of (i) Five Hundred and No/100 Dollars ($500.00) or (ii) a sum equal to three percent (3%) of
the unpaid rent or other payment; provided, however, subject to Tenant’s not being in default hereunder beyond any applicable cure period, Tenant shall be entitled to one (1) additional ten (10) day grace period per Lease Year during
which Tenant may make such payment without paying the late charge as hereinabove described. All unpaid rent and other sums of whatever nature owed by Tenant to Landlord under this Lease shall bear interest from the tenth (10th) day after the
due date thereof until paid at the lesser of two percent (2%) per annum above the “prime rate” as published in the Wall Street Journal from time to time (the “Prime Rate”). Acceptance by Landlord of any payment from Tenant
hereunder in an amount less than that which is currently due shall in no way affect Landlord’s rights under this Lease and shall in no way constitute an accord and satisfaction. 

 5. ALTERATIONS AND IMPROVEMENTS BY TENANT. 
 Tenant shall make no structural changes respecting the Premises or the Building (or to the mechanical or building systems of the Building) and shall make
no changes of any kind respecting the Premises or the Building which are visible from the exterior of the Premises without Landlord’s prior written consent, to be granted or withheld in Landlord’s sole discretion. Except for the initial
upfitting of the Premises in accordance with the Plans, any other interior, nonstructural changes or other alterations, additions, or improvements to the Premises (including without limitation, repairs or replacement of the HVAC system serving the
Premises in accordance with Section 10 herein) shall not require Landlord’s consent (so long as such alterations do not impact any base building systems), however, Tenant shall provide Landlord with at least ten (10) days advance
written notice of such alterations and a copy of the plans for such interior, nonstructural alterations. All alterations, additions or improvements, including without limitation all partitions, walls, railings, carpeting, floor and wall coverings
and other fixtures (excluding, however, Tenant’s trade fixtures as described in the paragraph entitled “Trade Fixtures and Equipment” below) made by, for, or at the direction of Tenant shall, when made, become the property of
Landlord, at Landlord’s sole election, and shall, unless otherwise specified by Landlord at the time Landlord gives its consent thereto, remain upon the Premises at the expiration or earlier termination of this Lease. 
 Notwithstanding anything contained herein to the contrary, all alterations and improvements undertaken by Tenant shall be consistent with the
then-existing quality, color scheme (where appropriate), general aesthetic appearance and tenor of the balance of the Building and, in any event, Landlord may withhold its consent, to the extent consent is required hereunder, to any proposed
alteration or improvement by Tenant unless Tenant agrees to remove said improvement at the end of the Term and/or restore the Premises to the condition in which it existed prior to the undertaking of the proposed alteration or improvement.

 6. USE OF PREMISES. 
 (a)
Tenant shall use the Premises only for general office, research and development of pharmaceutical products and laboratory purposes and for no other purpose. Tenant shall comply with all laws, ordinances, orders, regulations or zoning classifications
of any lawful governmental authority, agency or other public or private regulatory authority (including insurance underwriters or rating bureaus) having jurisdiction over the Premises. Tenant shall not do any act or follow any practice relating to
the Premises, the Building or the Common Areas which shall constitute a nuisance or detract in any way from the reputation of the Building as a first-class real estate development comparable to other comparable buildings in the Raleigh/Durham market
taking into account rent and other relevant factors. Tenant’s duties in this regard shall include allowing no noxious or offensive odors, fumes, gases, smoke, dust, steam or vapors, or any loud or disturbing noise or vibrations to originate in
or emit from the Premises except for minor disturbances created in the ordinary course of Tenant’s business provided such ordinary operations by Tenant do not adversely impact any other occupants of the Building. In addition, Tenant shall not
conduct a sale of any personal property on or about the Premises, the Building or in the Common Areas without the prior written consent of Landlord. 

 (b) Without limiting the generality of (a) above, and excepting only cleaning materials and other
chemicals, compounds, and materials (as disclosed by the Hazardous Materials Disclosure Certificate described below or with respect to any hazardous materials introduced after an annual Hazardous Materials Disclosure Certificate is provided, such
additional hazardous materials used in the Premises as are subsequently disclosed on the next Hazardous Materials Disclosure Certificate coming due hereunder) used by Tenant in its ordinary day to day business operations (but not held for sale,
storage or distribution) and customarily used in facilities such as the Building, and then only to the extent used, stored (but not any bulk storage), transported, and disposed of strictly in accordance with all applicable laws, regulations and
manufacturer’s recommendations, the Premises shall not be used for the treatment, storage, transportation to or from, use or disposal of toxic or hazardous wastes, materials, or substances, or any other substance that is prohibited, limited or
regulated by any governmental or quasi-governmental authority or which poses an immediate threat to health and safety of the occupants of the Building or surrounding property (collectively “Hazardous Substances”). In addition, Tenant shall
be liable for, and shall indemnify and hold Landlord harmless from, all costs, damages and expenses (including reasonable attorney’s fees) incurred in connection with the use, storage, discharge or disposal of any Hazardous Substances by Tenant
or Tenant’s Invitees except to the extent such costs, damages and expenses are caused directly by Landlord, its agents, employees or contractors. Landlord warrants and represents that to the best of Landlord’s actual knowledge and except
as otherwise previously disclosed to Tenant, the Premises is free from any Hazardous Substances in violation of applicable law. Prior to execution of this Lease (and thereafter, on or before each anniversary of the Commencement Date), Tenant shall
complete the Hazardous Materials Disclosure Certificate attached hereto as Exhibit “G” and deliver a fully executed copy of same to Landlord for its review and approval. 
 (c) Tenant shall exercise due care in its use and occupancy of the Premises and shall not commit or allow waste to be committed on any portion of the
Premises; and at the expiration or earlier termination of this Lease, Tenant shall deliver the Premises to Landlord in the same condition in which it existed as of the Commencement Date, ordinary wear and tear, fire or other casualty, acts of God
and approved alterations and improvements alone excepted. 
 (d) Tenant’s use and occupancy of the Premises shall include the use in
common with others entitled thereto of the Common Areas and all other improvements provided by Landlord for the common use of the Building tenants, and any other common facility as may be designated from time to time by the Landlord, subject,
however, to the terms and conditions of this Lease and to the reasonable rules and regulations for use therefor as prescribed from time to time by the Landlord. Subject to the terms hereof, Tenant and Tenant’s Invitees shall have the
nonexclusive use (in common with other benefiting tenants) to use the Common Areas for purposes intended. Tenant shall not at any time unreasonably interfere with the use of the Common Areas by Landlord, another tenant or any other person entitled
to use same. Landlord reserves the right, from time to time, to alter any of the Common Areas, to exercise control and management of the same, and to establish, modify, change and enforce such reasonable rules and regulations as Landlord in its
discretion may deem desirable for the management of the Building or the Common Areas so long as such modifications do not have a material, adverse impact on Tenant’s use of the Premises. 

 (e) Tenant shall save Landlord harmless from any claims, liabilities, penalties, fines, costs, expenses
or damages resulting from (i) Tenant’s use or occupancy of the Premises, and (ii) the non-performance of any covenant or agreement on Tenant’s part to be performed pursuant to this Paragraph 6 except to the extent such claims,
liabilities, penalties, fines, costs, expenses or damages are caused by the negligent acts or willful misconduct of Landlord or its agents, employees, or contractors or the failure of Landlord to repair any part of the Premises which Landlord is
obligated to repair and maintain in accordance with the terms of this Lease. This indemnification shall survive the termination or expiration of this Lease. 
 7. TAXES ON LEASE AND TENANT’S PROPERTY. 
 (a) Tenant shall pay any taxes, documentary stamps or
assessments of any nature which may be imposed or assessed upon this Lease, Tenant’s occupancy of the Premises or Tenant’s trade fixtures, equipment, machinery, inventory, merchandise or other personal property located on the Premises and
owned by or in the custody of Tenant as promptly as all such taxes or assessments may become due and payable without any delinquency. 
 (b)
Landlord shall pay, subject to reimbursement from Tenant as provided in Section 4 hereof, all ad valorem property taxes which are now or hereafter assessed upon the Premises, the Building and the Common Areas, except as otherwise expressly
provided in this Lease. 
 8. FIRE AND EXTENDED COVERAGE INSURANCE. 
 Landlord shall maintain and pay, subject to reimbursement from Tenant as provided in Section 4 hereof, for fire and casualty special form “all
risk” insurance, with extended coverage (including boiler and machinery coverage), covering the Building and any permanently affixed alterations or improvements thereto other than Tenant’s personal property, trade fixtures and equipment
(all of which shall be insured by Tenant), equal to at least eighty percent (80%) of the replacement cost thereof Except for Tenant’s use of materials used in the ordinary course of Tenant’s business which use will be in strict
compliance with all applicable laws and regulations, Tenant shall not do or cause to be done or permit on the Premises or in the Building anything deemed extra hazardous on account of fire and Tenant shall not use the Premises, the Building or the
Common Areas in any manner which will cause an increase in the premium rate for any insurance in effect on the Building or a part thereof. If, because of anything done, caused to be done, permitted or omitted by Tenant or Tenant’s Invitees, the
premium rate for any kind of insurance in effect on the Building or any part thereof shall be raised, Tenant shall pay Landlord on demand the amount of any such increase in premium which Landlord shall pay for such insurance and if Landlord shall
demand that Tenant remedy the condition which caused any such increase in an insurance premium rate, Tenant shall remedy such condition within twenty (20) days after receipt of such demand. Tenant shall maintain and pay for all fire and
extended coverage insurance on its contents in the Premises, including trade fixtures, equipment, machinery, merchandise or other personal property belonging to or in the custody of Tenant. Tenant shall first furnish to Landlord copies of insurance
policies or certificates of insurance evidencing the required coverage prior to the Commencement Date and thereafter prior to each policy renewal date. 

 Notwithstanding anything herein to the contrary, Landlord reserves the right for itself, any affiliated
entities and any successors and assigns, with a net worth substantially equivalent to Landlord’s net worth as of the date hereof, to self-insure against any risk required hereunder to be insured or otherwise assumed by Landlord so long as any
such program of self-insurance affords the same coverage of risks and benefits which would be afforded in the event Landlord procured insurance from a third-party insurer. 
 9. LANDLORD’S COVENANT TO REPAIR AND REPLACE. 
 (a) During the Term, Landlord shall be responsible only for all costs and expenses associated with the repairs or replacements to the roof, roof membrane, exterior walls, structural members (including foundation and sub-flooring of the
Premises) and for the central plumbing and electrical systems serving the entire Building up to the respective applicable points of entry of same into the Premises except for repairs or replacements caused by the negligent acts or omissions or
willful misconduct of Tenant or Tenant’s Invitees which are not otherwise covered by any insurance maintained by Landlord, which shall be made at Tenant’s sole cost and expense. Landlord shall maintain such items in substantial compliance
with applicable laws, regulations, ordinances and codes, however, any non-compliance shall not materially impair Tenant’s use and enjoyment of the Premises or constitute a threat or danger to the health or safety of Tenant or Tenant’s
Invitees. Landlord’s repairs and replacements shall be made as soon as reasonably possible using due diligence and reasonable efforts, taking into account in each instance all circumstances surrounding the repair or replacement, including
without limitation, the materiality of the repair or replacement to Tenant’s use and operation of its business within the Premises and the relation thereof to the enjoyment of same, such period not to exceed one hundred eighty (180) days
after receiving written notice from Tenant of the need for repairs or such longer period of time as is reasonably necessary under the circumstances so long as Landlord is diligently pursuing the completion of same. If Landlord cannot, using due
diligence, complete its repairs within the time period herein specified and such failure to repair has a material adverse impact on Tenant’s use or occupancy of the Premises, then (unless the need for such repairs or replacements is the result
of the negligence, misconduct or acts or omissions of Tenant or Tenant’s Invitees, in which event Tenant shall not be entitled to terminate this Lease) either party may terminate this Lease effective upon thirty (30) days’ prior
written notice to the other, without prejudice to Landlord’s rights to receive payment from Tenant for uninsured damages caused directly or indirectly by Tenant or Tenant’s Invitees. If the need for such repairs or replacements is the
result of the negligence, misconduct or acts or omissions of Tenant or Tenant’s Invitees, and the expense of such repairs or replacements are not fully covered and paid by Landlord’s insurance, then Tenant shall pay Landlord the full
amount of expenses not covered. Landlord’s duty to repair or replace as prescribed in this paragraph shall be Tenant’s sole remedy and shall be in lieu of any warranties or guaranties of Landlord, express or implied; provided, however, in
the event Landlord fails to fulfill its obligations under this Paragraph 9(a) with respect to a leak in the roof of the Premises within thirty (30) days (or such longer period as may be required in the exercise of due diligence) following
receipt of written notice of such failure to perform from Tenant, Tenant shall be entitled to hire a contractor reasonably acceptable to Landlord to make the necessary repair or replacement to the roof of the 

 Premises, provided such activities shall not in any way void or negatively impact Landlord’s warranty on the roof of
the Premises or the Building, and thereafter, to the extent not reimbursed to Tenant within fifteen (15) days after demand therefor, Tenant may pursue an action against Landlord for collection of the actual costs of such repair or replacement.

 (b) Landlord shall not be liable for any failure to make any repairs or to perform any maintenance required of Landlord hereunder unless
such failure shall persist (after written notice from Tenant setting forth the need for such repair(s) or replacement(s) in reasonable detail has been received by Landlord) beyond the applicable timeframes for such repair set forth in subparagraph
(b) above. Except as set forth in the paragraph of this Lease, entitled “Damage or Destruction of Premises”, there shall be no abatement of rent. There shall be no liability of Landlord by reason of any injury to or interference with
Tenant’s business arising from the making of any repairs, replacements, alterations or improvements to any portion of the Building or the Premises, or to fixtures, appurtenances and equipment therein except to the extent caused directly by
Landlord’s negligent acts or willful misconduct. To the extent permitted under applicable law and except as otherwise expressly set forth above, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or
ordinance now or hereafter in effect. 
 10. TENANT’S COVENANT TO REPAIR. 
 Tenant shall be responsible for the repair, replacement and maintenance in good order and condition of all parts and components of the Premises (other
than those specified for repair, replacement and maintenance by Landlord above), including without limitation the plumbing, wiring, electrical systems, HVAC system, glass and plate glass, equipment and machinery constituting fixtures, unless such
repairs or replacements are required as a result of the negligence or willful misconduct of Landlord, its agents or employees and are not otherwise covered by any insurance maintained by Tenant, in which event Landlord shall be responsible for such
repairs. At the end of the Term, Tenant shall return the Premises, including the HVAC system, to Landlord in substantially the same condition in which it existed as of the Commencement Date, excepting only normal wear and tear, acts of God, repairs
and replacements required to be made by Landlord hereunder or required as a result of the negligent acts or willful misconduct of Landlord, its agents, employees, and contractors. Tenant’s duty to maintain the HVAC system shall specifically
include the duty to enter into and maintain at Tenant’s sole expense during the entire term of this Lease a contract for the routine and periodic maintenance and regular inspection of such HVAC system, the replacement of filters as recommended
and the performance of other recommended periodic servicing in accordance with applicable manufacturer’s standards and recommendations. Such contract: (a) shall be with a reputable contractor reasonably satisfactory to Landlord;
(b) shall satisfy the requirements for routine and periodic maintenance, if any, necessary to keep all applicable manufacturer’s warranties in full force and effect; and (c) shall provide that in the event this Lease expires or is
earlier terminated for any reason whatsoever that said contract shall be immediately terminable by Landlord or Tenant without any cost, expense or other liability on the part of Landlord. Tenant agrees to deliver a copy of the HVAC maintenance
contract to Landlord within ten (10) days after the Commencement Date. 

 11. TRADE FIXTURES AND EQUIPMENT. 
 Prior to installation, Tenant shall furnish to Landlord notice of all attached trade fixtures and equipment of a permanent nature which it intends to
install within the Premises and the installation of same shall be subject to Landlord’s reasonable consent, to the extent such consent is required under this Lease. So long as no Event of Default has occurred and is continuing hereunder, any
trade fixtures and equipment installed in the Premises at Tenant’s expense and identified by Tenant in notice to Landlord shall remain Tenant’s personal property (“Tenant’s Personal Property”) and Tenant shall have the right
at any time during the Term to remove such trade fixtures and equipment. Upon removal of any trade fixtures or equipment, Tenant shall immediately restore the Premises to substantially the same condition in which it existed when the Premises was
delivered to Tenant by Landlord, ordinary wear and tear and acts of God alone excepted. Any of Tenant’s Personal Property not removed by Tenant within five (5) days of the expiration or earlier termination of the Lease shall, at
Landlord’s sole election, either (i) become the property of Landlord, in which event Landlord shall be entitled to handle and dispose of same in any manner Landlord deems fit without any liability or obligation to Tenant or any other third
party with respect thereto, or (ii) be subject to Landlord’s removing such property from the Premises and storing same, all at Tenant’s expense and without any recourse against Landlord with respect thereto. Without limiting the
generality of the foregoing, the following property shall in no event be deemed to be “trade fixtures” and Tenant shall not remove any such property from the Premises under any circumstances, regardless of whether installed by Landlord or
Tenant: (a) any air conditioning, air ventilating or heating fixtures or equipment; (b) any lighting fixtures or equipment; (c) any carpeting or other permanent floor coverings; (d) any paneling or other wall coverings;
(e) plumbing fixtures and equipment; or (f) permanent shelving. Landlord hereby waives any lien interests it may have in Tenant’s Personal Property; provided, however, in no event may Tenant encumber or otherwise impair
Landlord’s title to the Premises, the Building or the Building’s common areas or Tenant’s leasehold interest in the Premises through the financing of any personal property within the Premises or any other activity. 
 12. UTILITIES. 
 Tenant shall pay for all
utilities or services related to its use of the Premises including without limitation electricity, gas, heat, water, sewer, telephone and janitorial services. To the extent that water and/or sewer usage are not separately metered for the Premises,
Tenant shall pay Tenant’s Proportionate Share (as defined in Section 1(h) herein) of the applicable charges therefor, and the manner for payment thereof shall be as set forth in Section 3(f) herein. Landlord shall not be responsible
for the stoppage or interruption of utilities services other than as required by its limited covenant to repair and replace set forth above, nor shall Landlord be liable for any damages caused by or from the plumbing and sewer systems, except to the
extent such interruption of utilities services continues for at least five (5) consecutive business days and is caused directly by the negligent acts or willful misconduct of Landlord, its agents, employees or contractors and is not otherwise
covered by any insurance maintained, or required hereunder to be maintained, by Tenant. 

 13. DAMAGE OR DESTRUCTION OF PREMISES. 
 If the Premises are damaged by fire or other casualty, but are not rendered untenantable for Tenant’s business, Landlord shall cause such damage to
be repaired without unreasonable delay and the Annual Rental shall not abate. If by reason of such casualty the Premises are rendered untenantable for Tenant’s business, either in whole or in part, Landlord shall cause the damage to the
physical structure of the Building (excluding any tenant improvements or alterations therein) to be repaired or replaced without unreasonable delay, and, in the interim, the Annual Rental shall be proportionately reduced as to such portion of the
Premises as is rendered untenantable. Any such abatement of rent shall not, however, create an extension of the Term. Provided, however, if by reason of such casualty, the Premises are rendered untenantable in some material portion,
and Landlord, in its commercially reasonable estimation, determines (within 60 days after the date of said casualty) that the amount of time required to repair the damage using due diligence is in excess of two hundred ten (210) days, Landlord
shall provide Tenant written notice within ten (10) days of such estimation by Landlord, whereupon either party shall have the right to terminate this Lease by giving written notice of termination within thirty (30) days after the date of
said notice from Landlord, and the Annual Rental shall (i) abate as of the date of such casualty in proportion to the part of the Premises rendered untenantable, and (ii) abate entirely as of the effective date of the termination of this
Lease. Notwithstanding the other provisions of this paragraph, in the event there should be a casualty loss to the Premises to the extent of fifty percent (50%) or more of the replacement value of the Premises or which renders the Premises
untenantable for the conduct of Tenant’s business operations during the last Lease Year of the Term, or any extended term, as determined by Landlord in the exercise of its reasonable discretion and upon written notice to Tenant within thirty
(30) days of such casualty,, either party may, at its option, terminate this Lease by giving written notice to the other party within thirty (30) days after the date of the casualty and the Annual Rental shall abate as of the effective
date of said termination. Except as provided herein, Landlord shall have no obligation to rebuild or repair in case of fire or other casualty, and no termination under this paragraph shall affect any rights of Landlord or Tenant hereunder arising
from the prior defaults of the other party. Tenant shall give Landlord immediate notice of any fire or other casualty in the Premises. Notwithstanding the foregoing, in no event shall Landlord be required to expend more funds in connection with the
repair or restoration of the Premises than the amount received by Landlord from the proceeds of any insurance maintained by Landlord, provided, however, if Landlord does not have sufficient proceeds to rebuild and elects not to fund any such
deficiency, Landlord shall provide Tenant with written notice of Landlord’s inability to rebuild the Premises in accordance with the terms herein (such notice to be provided within sixty (60) days after the date of said casualty, and in
such event, Tenant shall have the right to terminate this Lease by written notice to Landlord within ten (10) days after Tenant’s receipt of said notice from Landlord and such termination shall be effective as of the date of such casualty
loss. 
 14. GOVERNMENTAL ORDERS. 
 Except as hereinbelow set forth regarding compliance of the physical structure of the Building with applicable governmental regulations, including without limitation, compliance with the applicable requirements of the Americans with
Disabilities Act and the implementing regulations (the “ADA”) as of the Commencement Date, Tenant agrees, at its own expense, to comply promptly with all requirements of any legally constituted public authority that may be in 

 effect from time to time made necessary by reason of Tenant’s use or occupancy of the Premises. Landlord agrees to
comply promptly with any such requirements if not made necessary by reason of Tenant’s use or occupancy. With regard to the physical structure of the Building, Landlord agrees to use good faith and due diligence to undertake those actions that
are “readily achievable” (as such term is defined in the ADA) in order to attempt to bring the physical structure of the Building in compliance with the applicable requirements of the ADA in effect as of the Commencement Date. If it is
determined that for any reason Landlord shall have failed to cause the physical structure of the Building (excluding any tenant improvements or alterations) to be brought into compliance with the ADA as of the Commencement Date (to at least the
minimum extent required under applicable regulations then in effect), then Landlord, as its sole obligation, will take the action(s) necessary to cause the physical structure of the Building to so comply, and Tenant acknowledges and agrees that
Landlord has and shall have no other obligation or liability whatsoever to Tenant, or to anyone claiming by or through Tenant, regarding any failure of the Building or the activities therein to comply with the applicable requirements of the ADA.
Landlord and Tenant agree, however, that if in order to comply with any of the above requirements, the cost to Landlord or Tenant, as the case may be, shall exceed a sum equal to one (1) year’s rent, then the party who is obligated to
comply with such requirements is privileged to terminate this Lease by giving written notice of termination to the other party, which termination shall become effective sixty (60) days after receipt of such notice, and which notice shall
eliminate the necessity of compliance with such requirement by the party giving such notice, unless the party receiving such notice of termination shall, before termination becomes effective, pay to the party giving notice all costs of compliance in
excess of one (1) year’s rent, or secure payment of said sum in a manner satisfactory to the party giving notice. Notwithstanding anything contained herein to the contrary, it is agreed that: (a) Tenant is exclusively responsible for
all compliance with all requirements of any legally constituted public authority in the event non-compliance relates to Tenant’s use of, or operations from, the Premises and (b) in the event of non-compliance for which Landlord is
responsible, Landlord shall not be deemed in breach of this Lease if such non-compliance does not materially impair Tenant’s use of the Premises or threaten or endanger the health or safety of Tenant or Tenant’s Invitees; provided,
however, Landlord shall promptly remedy such non-compliance to the extent required by applicable laws, rules and regulations. 
 15. MUTUAL
WAIVER OF SUBROGATION. 
 For the purpose of waiver of subrogation, the parties mutually release and waive unto the other all rights to claim
damages, costs or expenses for any injury to property caused by a casualty or any other matter whatsoever in, on or about the Premises if the amount of such damage, cost or expense has been paid to such damaged party under the terms of any policy of
insurance or would have been paid if the injured party had carried the insurance required of it hereunder. All insurance policies carried with respect to this Lease, if permitted under applicable law, shall contain a provision whereby the insurer
waives, prior to loss, all rights of subrogation against either Landlord or Tenant. 
 16. SIGNS AND ADVERTISING. 
 (a) Landlord shall install, if not already in place and at Tenant’s sole cost and expense, a tenant identification sign in accordance with Building
standards, such sign to be 

 located at or near the Tenant’s front entrance to the Premises within the Building. Tenant shall, at Tenant’s
sole cost and expense, maintain such sign in good working order and keep such sign clearly visible during Tenant’s normal business hours. 
 (b) In order to provide architectural control for the Building and Business Park, Tenant shall not install any exterior signs, marquees, billboards, outside lighting fixtures and/or other decorations on the Premises, the Building or the
surrounding Common Areas. Landlord shall have the right to remove any such sign or other decoration and fully restore the Premises, the Building or the surrounding common areas at the cost and expense of Tenant if any such exterior work is done
without Landlord’s prior written approval, which approval Landlord shall be entitled to withhold or deny in its sole discretion. Tenant shall not permit, allow or cause to be used in, on or about the Premises any sound production devices,
mechanical or moving display devices, bright lights, or other advertising media, the effect of which would be visible or audible from the exterior of the Premises. 
 17. INDEMNIFICATION AND LIABILITY INSURANCE. 
 (a) Subject to the mutual waiver of subrogation set forth
herein, Tenant shall indemnify and save Landlord harmless against any and all actual and direct claims, suits, demands, actions, fines, damages, and liabilities, and all reasonable costs and expenses thereof (including without limitation reasonable
attorneys’ fees) or otherwise arising out of injury to persons (including death) or tangible property occurring in, on or about, or arising out of the Premises or other areas in the Building if caused or occasioned wholly or in part by any
act(s) or omission(s) of Tenant or Tenant’s Invitees or a breach of this Lease by Tenant, except to the extent caused by the negligence or willful misconduct of Landlord, its agents, employees or contractors. Tenant shall give Landlord
immediate notice of any such happening causing injury to persons or tangible property. Subject to the mutual waiver of subrogation set forth herein, Landlord shall indemnify and save Tenant harmless against any and all actual and direct claims,
suits, demands, actions, fines, damages, and liabilities, and all reasonable costs and expenses thereof (including without limitation reasonable attorneys’ fees) arising out of injury to persons (including death) or tangible property occurring
in, on or about, the Building to the extent caused directly by the negligence or willful misconduct of Landlord or Landlord’s agents, employees, or contractors and not otherwise caused by the negligence or willful misconduct of Tenant or
Tenant’s Invitees. 
 (b) At all times during the Term, Tenant shall at its own expense keep in force adequate public liability
insurance under the terms of a commercial general liability policy (occurrence coverage) in the amount of not less than Two Million and No/100 Dollars ($2,000,000.00) single limit with such company(ies) as shall from time to time be reasonably
acceptable to Landlord (and to any lender having a mortgage interest in the Premises) and naming Landlord and Landlord’s agent as an additional insured (and, if requested by Landlord from time to time, naming Landlord’s mortgagee as an
additional insured). In the event Tenant employs any contractor to perform any work in the Premises, Tenant shall provide Landlord with insurance certificates naming Landlord and such other parties as Landlord may designate as additional insureds
under policies of builders risk and general liability insurance, if it is possible to obtain such coverage for the contractor, and shall also provide Landlord with evidence of satisfactory workers compensation coverage in accordance with applicable
statutory 

 requirements. The policies required to be maintained by Tenant shall be with companies rated AX or better in the most
current issue of Best’s Insurance Reports and shall have a deductible of $25,000 or less. Such insurance shall include, without limitation, personal injury and contractual liability coverage for the performance by Tenant of the indemnity
agreements set forth in this Lease. Tenant shall first furnish to Landlord certificates of insurance evidencing the required coverage prior to the Commencement Date and thereafter, upon Landlord’s request, prior to each policy renewal date. All
policies required of Tenant hereunder shall contain a provision whereby the insurer is not allowed to cancel or change materially the coverage without first giving thirty (30) days’ written notice to Landlord. 
 (c) Landlord shall keep in force during the Term insurance in such amounts and coverages as Landlord deems appropriate or is otherwise required of
Landlord by third parties such as its lender. 
 18. LANDLORD’S RIGHT OF ENTRY. 
 Landlord, and those persons authorized by it, shall have the right to enter the Premises upon twenty-four hours notice provided Landlord is accompanied by
a representative of Tenant and Landlord otherwise complies with all health and safety procedures implemented by Tenant in connection with its customary business operations in the Premises, (except in the event of an emergency in which event no
notice and no Tenant representative shall be required) for the purposes of making repairs, making connections, installing utilities, providing services to the Premises or for any other tenant, making inspections or showing the same to prospective
purchasers and/or lenders (at any time during the Term hereof), or prospective tenants (during the last nine (9) months of the Term), as well as at any time without notice in the event of emergency involving possible injury to property or
persons in or around the Premises or the Building. 
 19. EMINENT DOMAIN. 
 If any substantial portion of the Premises is taken under the power of eminent domain (including any conveyance made in lieu thereof) or if such taking
shall materially impair the normal operation of Tenant’s business, then either party shall have the right to terminate this Lease by giving written notice of such termination within thirty (30) days after such taking. If neither party
elects to terminate this Lease, Landlord shall repair and restore the Premises to the best possible tenantable condition (but only to the extent of any condemnation proceeds awarded to Landlord) and the Annual Rental shall be proportionately and
equitably reduced as of the date of the taking. All compensation awarded for any taking (or the proceeds of a private sale in lieu thereof) shall be the property of Landlord whether such award is for compensation for damages to the Landlord’s
or Tenant’s interest in the Premises, and Tenant hereby assigns all of its interest in any such award to Landlord; provided, however, Landlord shall not have any interest in any separate award made to Tenant for loss of business, moving expense
or the taking of Tenant’s trade fixtures or equipment if a separate award for such items is made to Tenant and such separate award does not reduce the award to Landlord. Notwithstanding the foregoing, in no event shall Tenant be entitled to any
compensation for the loss of its leasehold estate. 

 20. EVENTS OF DEFAULT AND REMEDIES. 
 (a) Upon the occurrence of any one or more of the following events (the “Events of Default,” any one an “Event of Default”), Landlord
shall have the right to exercise any rights or remedies available in this Lease, at law or in equity. Events of Default shall be: 
 (i)
Tenant’s failure to pay any Annual Rental payable hereunder within five (5) days after same becomes due; provided, however, Tenant shall be entitled to written notice and a five (5) day cure period with respect to its failure to pay
any installment of Annual Rent once during each Lease Year; 
 (ii) Tenant’s failure to pay any other sum of money payable hereunder
within ten (10) days after written notice thereof from Landlord of a deficiency in such payment; 
 (iii) Tenant’s failure to
perform any other of the terms, covenants or conditions contained in this Lease if not remedied within thirty (30) days after receipt of written notice thereof, or if such default cannot be remedied within such period, Tenant does not within
thirty (30) days after written notice thereof commence such act or acts as shall be necessary to remedy the default and shall not thereafter diligently prosecute such cure and complete such act or acts within ninety (90) days after written
notice thereof; 
 (iv) Tenant shall become bankrupt or insolvent, or file any debtor proceedings, or file pursuant to any statute a
petition in bankruptcy or insolvency or for reorganization, or file a petition for the appointment of a receiver or trustee for all or substantially all of Tenant’s assets and such petition or appointment shall not have been set aside within
sixty (60) days from the date of such petition or appointment, or if Tenant makes an assignment for the benefit of creditors, or petitions for or enters into an arrangement; 
 (v) Tenant allows its leasehold estate to be taken under any writ of execution and such writ is not vacated or set aside within thirty (30) days;
or 
 (vi) A default by Tenant under any other lease heretofore or hereafter made by Tenant for any other space in the Business Park.

 (b) In addition to its other remedies, Landlord, upon an Event of Default by Tenant, shall have the immediate right, after any applicable
grace period expressed herein, to terminate and cancel this Lease and/or terminate Tenant’s right of possession pursuant to applicable law, and reenter and remove all persons and properties from the Premises that Tenant has abandoned and to
place same in storage (for no more than thirty (30) days after which Landlord may dispose of said property) at any premises within the County in which the Premises is located; and in such event, Tenant shall be liable to Landlord for costs
incurred by Landlord in connection with such removal and storage, all without Landlord being guilty of trespass or being liable for any damages caused thereby. If Landlord reenters the Premises, it may either terminate this Lease or, from time to
time without terminating this Lease, terminate Tenant’s right of possession in accordance with applicable law and make such alterations and repairs as may be necessary or appropriate to relet the Premises and relet the Premises upon such terms
and conditions as Landlord deems advisable without any responsibility on Landlord whatsoever to 

 account to Tenant for any surplus rents collected. No retaking of possession of the Premises by Landlord shall be deemed
as an election to terminate this Lease unless a written notice of such intention is given by Landlord to Tenant at the time of reentry; but, notwithstanding any such reentry or reletting without termination, Landlord may at any time thereafter elect
to terminate for such previous default. In the event of an elected termination by Landlord, whether before or after reentry, Landlord may recover from Tenant damages, including the costs of recovering the Premises and any costs incurred in reletting
the Premises, and Tenant shall remain liable to Landlord for the total Annual Rental (which may at Landlord’s election be accelerated to be due and payable in full as of the Event of Default and recoverable as damages in a lump sum) as would
have been payable by Tenant hereunder for the remainder of the term less the rentals actually received from any reletting or, at Landlord’s election, less the reasonable rental value of the Premises for the remainder of the term. In determining
the Annual Rental which would be payable by Tenant subsequent to default, except with respect to Minimum Rental (which shall be calculated in accordance with Section 1(g) hereof) the Annual Rental for each Lease Year of the unexpired term shall
be as set forth in Section 1(g) hereof. If any rent owing under this Lease is collected by or through an attorney, Tenant agrees to pay Landlord’s reasonable attorneys’ fees to the extent allowed by applicable law. Upon an Event of
Default by Tenant hereunder, Landlord shall use commercially reasonable efforts to mitigate its damages. 
 21. SUBORDINATION. 
 This Lease is subject and subordinate to any and all mortgages or deeds of trust currently existing on the property of which the Premises is a part, and
this clause shall be self-operative without any further instrument necessary to effect such subordination; however, if requested by Landlord, Tenant shall promptly execute and deliver to Landlord any such certificate(s) in a commercially reasonable
form as Landlord may reasonably request evidencing the subordination of this Lease to or the assignment of this Lease as additional security for such mortgages or deeds of trust. Subject to the condition precedent that Landlord provide Tenant with a
non-disturbance agreement in a commercially reasonable form in favor of Tenant from any mortgagee, trustee or beneficiary, this Lease shall be subject and subordinate to any mortgage or deed of trust which may hereafter encumber the property of
which the Premises is a part. Tenant’s obligations under this Lease shall continue in full force and effect notwithstanding any such default proceedings under a mortgage or deed of trust and shall attorn to the mortgagee, trustee or beneficiary
of such mortgage or deed of trust, and their successors or assigns, and to the transferee under any foreclosure or default proceedings and subject to the terms of any non-disturbance agreement, the mortgagee, trustee, or beneficiary or their
successors or assigns shall be bound by all of the obligations of Landlord under this Lease which accrue after such foreclosure or default proceeding. Tenant will, upon request by Landlord, execute and deliver to Landlord or to any other person
designated by Landlord, any instrument or instruments in a commercially reasonable form required to give effect to the provisions of this paragraph. Landlord agrees to use commercially reasonable efforts to provide Tenant with a customary
subordination, non-disturbance and attornment agreement from any lender currently holding a deed of trust encumbering the Building at no cost to Tenant. 

 22. ASSIGNMENT AND SUBLETTING. 
 Tenant shall not assign, sublet, mortgage, pledge or encumber this Lease, the Premises, or any interest in the whole or in any portion thereof, directly
or indirectly, without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. In the event of any assignment, sublease, mortgage, pledge or encumbrance, Tenant shall: (i) remain primarily liable for
the performance of all terms of this Lease, (ii) pay all reasonable costs, including without limitation, attorney’s fees, incurred by Landlord in connection with such assignment, sublease or mortgage, and (iii) pay to Landlord fifty
percent (50%) of any rental or any fees or charges received by Tenant (less the actual, reasonable expenses incurred by Tenant in connection with such re-letting as evidenced by written receipts thereof) in excess of the Annual Rental payable
to Landlord hereunder as further rental under this Lease. Landlord’s consent to one assignment or sublease will not waive the requirement of its consent to any subsequent assignment or sublease as required herein. Upon notice to Landlord of a
proposed sublease (for all or substantially all of the remaining Term) or assignment of all or any portion of the Premises (the “Proposed Space”), Landlord shall have the option within fifteen (15) days after its receipt of such
notice, to terminate this Lease with respect to the Proposed Space, whereupon the parties hereto shall have no further rights or liabilities with respect to the Proposed Space except as otherwise expressly set forth herein. Notwithstanding the
foregoing, provided no Tenant default has occurred and is continuing hereunder, Tenant may assign or sublet all or any portion of the Premises upon ten (10) days advance written notice to Landlord (but without Landlord’s consent) to an
entity controlled by Tenant or which controls Tenant or in connection with a merger, consolidation, corporate reorganization, or a sale of all or substantially all of its assets or stock, provided that the new controlling entity has a consolidated
net worth greater than or equal to Tenant’s consolidated net worth at the time of the proposed transfer (as evidenced by audited financials provided by said assignee). For purposes hereof, “control” shall be deemed to mean ownership
of more than fifty percent (50%) of the ownership interest of any entity. 
 In the event of a proposed assignment of this Lease or
subletting of all or a part of the Premises, for which Landlord’s consent is required hereunder, Tenant shall submit to Landlord, in writing, (i) the name of the proposed assignee or sublessee, (ii) current financial statements,
available to Tenant disclosing the financial condition of the proposed assignee or subtenant, (iii) the nature of the business of the proposed assignee or sublessee, and its proposed use of the Premises (any assignment or subletting being
subject to restrictions on use contained in this Lease, the violation of which by the proposed assignee or sublessee shall constitute absolute grounds for Landlord’s denial of the requested assignment or subletting, such grounds not being the
exclusive grounds for denial under clause (iii)) and (iv) the proposed commencement date of the assignment or subletting, together with a copy of the proposed assignment or sublease. Within thirty (30) days after its receipt of such
notice, Landlord shall either approve or disapprove such proposed assignment or sublease in writing. Tenant shall promptly deliver a copy of the fully executed assignment or sublease to Landlord upon its receipt of same. 
 Notwithstanding anything in this Lease to the contrary, Tenant further agrees that any assignment or sublease shall be subject to the following
additional limitations unless Tenant obtains Landlord’s prior consent: (i) in no event may Tenant assign this Lease or sublet all or any portion of the Premises to an existing tenant of the Business Park or its subtenant or assignee

 (unless Landlord consents to such assignment or sublease or Landlord is not otherwise generally able to accommodate said
existing tenant with comparable space in the Business Park); (ii) in no event shall the proposed subtenant or assignee be a person or entity with whom Landlord or its agent is negotiating and to or from whom Landlord, or its agent, has given or
received any written proposal within the past three (3) months regarding a lease of space in the Business Park; and (iii) Tenant shall not publicly advertise the rate for which Tenant is willing to sublet the Premises; and all public
advertisements of the assignment of the Lease or sublet of the Premises, or any portion thereof, shall be subject to prior written approval by Landlord, such approval not to be unreasonably withheld or delayed. Said public advertisement shall
include, but not be limited to, the placement or display of any signs or lettering on the exterior of the Premises or on the glass or any window or door of the Premises or in the interior of the Premises if it is visible from the exterior.

 23. TRANSFER OF LANDLORD’S INTEREST. 
 If Landlord shall sell, assign or transfer all or any part of its interest in the Premises or in this Lease to a successor in interest which expressly assumes the obligations of Landlord hereunder in writing, then
Landlord shall thereupon be released or discharged from all covenants and obligations hereunder accruing from and after the date of such transfer, and Tenant shall look solely to such successor in interest for performance of all of Landlord’s
obligations and such successor shall be obligated to perform all of Landlord’s obligations under this Lease which accrue after the date of such transfer. Tenant’s obligations under this Lease shall in no manner be affected by
Landlord’s sale, assignment, or transfer of all or any part of such interest(s) of Landlord, and Tenant shall thereafter attorn and look solely to such successor in interest as the Landlord hereunder. 
 24. COVENANT OF QUIET ENJOYMENT. 
 Landlord
represents that it has full right and authority to lease the Premises and provided that Tenant is not in default beyond any applicable cure period, Tenant shall peacefully and quietly hold and enjoy the Premises for the full Term hereof and any
extensions thereof. 
 25. ESTOPPEL CERTIFICATES. 
 Within twenty (20) days after a request by Landlord, Tenant shall deliver a written estoppel certificate, in a form supplied by or acceptable to Landlord, certifying any facts that are then true with respect to
this Lease, including without limitation that this Lease is in full force and effect, that no Event of Default exists on the part of Landlord or Tenant, that Tenant is in possession, that Tenant has commenced the payment of rent, and that Tenant
claims no defenses or offsets with respect to payment of rentals under this Lease. Within thirty (30) days after a request by Tenant, Landlord shall deliver to Tenant a similar estoppel certificate covering such matters as are reasonably
required by Tenant. 
 26. PROTECTION AGAINST LIENS. 
 Tenant shall do all things necessary to prevent the filing of any mechanics’, materialmen’s or other types of liens whatsoever, against all or any part of the Premises by 

 reason of any claims made by, against, through or under Tenant. If any such lien is filed against the Premises, Tenant
shall either cause the same to be discharged of record within twenty (20) days after filing or, if Tenant in its discretion and in good faith determines that such lien should be contested, it shall furnish such security as may be necessary to
prevent any foreclosure proceedings against the Premises during the pendency of such contest. If Tenant shall fail to discharge such lien within said time period or fail to furnish such security, then Landlord may at its election, in addition to any
other right or remedy available to it, discharge the lien by paying the amount claimed to be due or by procuring the discharge by giving security or in such other manner as may be allowed by law. If Landlord acts to discharge or secure the lien then
Tenant shall immediately reimburse Landlord for all sums paid and all costs and expenses (including reasonable attorneys’ fees) incurred by Landlord involving such lien together with interest on the total expenses and costs at an interest rate
equal to the Prime Rate plus three percent (3%). 
 27. MEMORANDUM OF LEASE. 
 If requested by Tenant, Landlord shall execute a recordable Memorandum or Short Form Lease, prepared at Tenant’s expense, specifying the exact term
of this Lease and such other terms as the parties shall mutually determine. 
 28. LANDLORD’S LIEN. [Intentionally Deleted]

 29. FORCE MAJEURE. 
 In the
event Landlord or Tenant shall be delayed, hindered or prevented from the performance of any act required hereunder, by reason of governmental restrictions, scarcity of labor or materials, strikes, fire, or any other reasons beyond its reasonable
control, the performance of such act shall be excused for the period of delay, and the period for performance of any such act shall be extended as necessary to complete performance after the delay period. However, the provisions of this paragraph
shall in no way be applicable to Tenant’s obligations to pay Annual Rental or any other sums, monies, costs, charges or expenses required by this Lease. 
 30. REMEDIES CUMULATIVE — NONWAIVER. 
 Unless otherwise specified in this Lease, no remedy of Landlord
or Tenant shall be considered exclusive of any other remedy, but each shall be distinct, separate and cumulative with other available remedies. Each remedy available under this Lease or at law or in equity may be exercised by Landlord or Tenant from
time to time as often as the need may arise. No course of dealing between Landlord and Tenant or any delay or omission of Landlord or Tenant in exercising any right arising from the other party’s default shall impair such right or be construed
to be a waiver of a default. 
 31. HOLDING OVER. 
 If Tenant remains in possession of the Premises or any part thereof after the expiration of the Term, whether with or without Landlord’s acquiescence, Tenant shall be deemed only a tenant at will and there shall
be no renewal of this Lease without a written agreement signed by 

 both parties specifying such renewal. The hold over tenancy shall be subject to termination by Landlord or Tenant at any
time upon written notice to the other by either party. The “monthly” rental payable by Tenant during any such tenancy at will period shall be one hundred fifty percent (150%) of the monthly installments of Minimum Rental and one
hundred percent (100%) of the monthly installments of any additional rent and other pass-through charges payable during the final Lease Year immediately preceding such expiration. Tenant shall also remain liable for any and all damages, direct
and consequential, suffered by Landlord as a result of any holdover without Landlord’s unequivocal written acquiescence. 
 32. NOTICES.

 Any notice allowed or required by this Lease shall be deemed to have been sufficiently served if the same shall be in writing and placed in
the United States mail, via certified mail or registered mail, return receipt requested, with proper postage prepaid or delivered by a nationally recognized overnight courier, and addressed to the appropriate party at the address set forth in
Section 1(j) hereof. The addresses of Landlord and Tenant and the party, if any, to whose attention a notice or copy of same shall be directed may be changed or added from time to time by either party giving notice to the other in the
prescribed manner. 
 33. LEASING COMMISSION. 
 Landlord and Tenant represent and warrant each to the other that they have not dealt with any broker(s) or any other person claiming any entitlement to any commission in connection with this transaction except the
Broker(s) set forth in Section 1(l) hereof. Tenant agrees to indemnify and save Landlord harmless from and against any and all claims, suits, liabilities, costs, judgments and expenses, including reasonable attorneys’ fees, for any leasing
commissions or other commissions, fees, charges or payments resulting from or arising out of its actions in connection with this Lease. Landlord agrees to indemnify and save Tenant harmless from and against any and all claims, suits, liabilities,
costs, judgments and expenses, including reasonable attorneys’ fees, for any leasing commissions or other commissions, fees, charges or payments resulting from or arising out of its actions in connection with this Lease. Landlord agrees to be
responsible for the leasing commission due Broker pursuant to a separate written agreement with Broker. 
 34. LANDLORD DEFAULT. 

If Landlord shall fail to perform any of the covenants, terms or conditions of this Lease, Tenant will give Landlord written notice specifying such
default with particularity, and Landlord shall thereupon have thirty (30) days (or such longer period as may be required in the exercise of due diligence) in which to cure any such default. In the event Landlord fails to cure or commence to
cure its breach within the time periods set forth herein, Tenant shall be entitled to pursue any and all remedies available to it at law or in equity; provided, however, Tenant shall have no right to withhold, set off or abate rent. Unless and until
Landlord fails to so cure any default after such notice, Tenant shall not have any remedy or cause of action by reason thereof. The failure of Tenant to exercise its rights in connection with this Lease or any breach or violation of any term, or any
subsequent breach of the same or any other term, covenant or condition herein contained shall not be a waiver of such term, covenant or condition or any subsequent breach of the same or any other covenant or condition herein contained. 

 35. MISCELLANEOUS. 
 (a) Rules and Regulations. Landlord shall have the right from time to time to prescribe reasonable rules and regulations (the “Rules and Regulations”) for Tenant’s use of the Premises and for
Tenant and all other tenants’ use of the Building. A copy of Landlord’s current Rules and Regulations respecting the Premises and the Building is attached hereto as Exhibit “D” and Landlord shall promptly provide Tenant
with any amendments thereto. Tenant shall abide by and actively enforce on all of Tenant’s Invitees such regulations including without limitation rules governing parking of vehicles in designated areas. 
 (b) Evidence of Authority. If requested by Landlord, Tenant shall furnish appropriate legal documentation evidencing the valid existence and good
standing of Tenant and the authority of any parties signing this Lease to act for Tenant. 
 (c) Limitation of Landlord’s
Liability. Notwithstanding any other provisions of this Lease to the contrary, in the event of a default by Landlord under this Lease, Tenant shall look solely to Landlord’s equity in the Building, and not to any other or separate business
or non-business assets of Landlord, or any partner, shareholder, officers or representative of Landlord, for the satisfaction of any claim brought by Tenant against Landlord, and if Landlord shall fail to perform any covenant, term or condition of
this Lease upon Landlord’s part to be performed within thirty (30) days after written notice from Tenant (unless such condition is incapable of being cured within said thirty (30) day period, in which event it shall not be deemed a
default so long as Landlord is diligently pursuing the completion of same), and, as a consequence of such default, Tenant shall recover a money judgment against Landlord, such judgment shall be satisfied solely out of the proceeds of sale received
upon execution of such judgment levied thereon against the right, title and interest of Landlord in the Building as the same may then be encumbered (including without limitation Landlord’s interest in the rents and profits arising out of
Landlord’s interest in the Building). Further, in the event the owner of Landlord’s interest in this Lease is at any time a partnership, joint venture or unincorporated association, Tenant agrees that the members or partners of such
partnership, joint venture or unincorporated association shall not be personally or individually liable or responsible for the performance of any of Landlord’s obligations hereunder. 
 With respect to any provisions of this Lease which provides that Landlord shall not unreasonably withhold or delay any consent or approval, Tenant shall
not have, and Tenant hereby waives, any claim for money damages; nor shall Tenant claim any money damages by way of setoff, counterclaim or defense, based upon any allegation of unreasonableness by Landlord. Tenant’s sole remedy shall be an
action or proceeding to enforce any such provisions, or for specific performance, injunction or declaratory judgment. 
 (d) Nature and
Extent of Agreement. This Lease, together with all exhibits hereto, contains the complete agreement of the parties concerning the subject matter, and there are no oral or written understandings, representations, or agreements pertaining thereto
which have not been incorporated herein. This Lease creates only the relationship of landlord and 

 tenant between the parties, and nothing herein shall impose upon either party any powers, obligations or restrictions not
expressed herein. This Lease shall be construed and governed by the laws of the state in which the Premises are located. 
 (e) Binding
Effect. This Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns. This Lease shall not be binding on Landlord until executed by an authorized signatory of Landlord
and delivered to Tenant. No amendment or modification to this Lease shall be binding upon Landlord unless same is in writing and executed by an authorized signatory of Landlord. 
 (f) Captions and Headings. The captions and headings in this Lease are for convenience and reference only, and they shall in no way be held to
explain, modify, or construe the meaning of the terms of this Lease. 
 (g) Security Deposit. Tenant has paid to Landlord upon signing
this Lease the Security Deposit as described in Section 1 (k) as security for Tenant’s performance of all obligations hereunder (the “Deposit”). The Deposit may be held by Landlord in such manner as it shall elect and
Landlord shall be entitled to any interest which accrues on the Deposit. In the event of a default by Tenant beyond any applicable cure period, Landlord may, at its option, require Tenant to double the amount of the Security Deposit and to fund such
increase within ten (10) days of Landlord’s notice to Tenant to increase the Security Deposit. Further, in the event of a default by Tenant, Landlord may, at its option, apply all or any part of the Deposit to cure the default, and
thereupon Tenant shall immediately redeposit with Landlord the amount so applied in order that Landlord will always have the full Deposit on hand during the term of this Lease. Upon the termination or earlier expiration of this Lease, provided that
Tenant is not in default beyond any applicable cure period hereunder, Landlord shall refund to Tenant any of the remaining balance of the Deposit within thirty (30) days subject to final adjustments for payment of any rental required by this
Lease. If the Premises is sold, Landlord shall have the right to transfer the Deposit to the new owner, and upon the new owner’s express assumption of the obligations for the Deposit required by this Lease, Landlord shall thereupon be released
from all liability for such Deposit, and Tenant thereafter shall look only to the new owner for such Deposit. The terms hereof shall apply to every transfer of the Deposit. 
 (h) Right to Relocate. [Intentionally Deleted] 
 (i) Representations and Warranties. Tenant represents, covenants and warrants to Landlord as of the date Tenant executes and delivers this Lease that: (a) Tenant is duly constituted, in good standing and
qualified to do business in the State of North Carolina; (b) Tenant has paid all corporate taxes (if applicable); (c) Tenant will file when due all forms, reports, fees and other documents necessary to comply with applicable laws; and
(d) the signatories signing on behalf of Tenant have the requisite authority to bind Tenant pursuant to Tenant’s organizational documents (i.e., partnership agreement, operating agreement or bylaws) or a certified copy of a resolution from
Tenant authorizing same. 
 Landlord represents, covenants and warrants to Tenant as of the date Landlord executes and delivers this Lease
that: (a) Landlord is duly constituted, in good standing and qualified to do business in the State of North Carolina; (b) Landlord has paid all corporate taxes (if 

 applicable); (c) Landlord will file when due all forms, reports, fees and other documents necessary to comply with
applicable laws; (d) the signatories signing on behalf of Landlord have the requisite authority to bind Landlord pursuant to Landlord’s organizational documents (i.e., partnership agreement, operating agreement or bylaws) or a certified
copy of a resolution from Landlord authorizing same; and (e) Landlord currently holds valid fee simple title to the Building. 
 (j)
Lease Review. The submission of this Lease to Tenant for review does not constitute a reservation of or option for the Premises, and this Lease shall become effective as a contract only upon execution and delivery by Landlord and Tenant.

 (k) Attorneys’ Fees. If either party places in the hands of an attorney the enforcement of this Lease or any part thereof, for
the collection of any rent due or to become due hereunder, or recovery of the possession of the Premises, or otherwise file suit hereunder, the non-prevailing (or defaulting) party shall pay the other party’s reasonable attorneys’ fees and
court costs. 
 (l) Principal Life Approval. This Lease may be subject to approval by the Principal Life Insurance Company Investment
Committee and the Board of Directors of Petula Associates, Ltd. In the event such approval is required and Landlord is unable to obtain such approval within ten (10) days after the date of this Lease, either party may elect to terminate this
Lease upon written notice to the other and the parties hereto shall have no further rights or obligations hereunder. 
 (m) Financial
Disclosures. Tenant shall at any time upon receipt of a written request from Landlord (such request to be made no more than once in any Lease Year), provide true, complete and accurate financial information and documentation about itself and any
Guarantor to Landlord, within ten (10) days after such request. Landlord covenants and agrees to keep such records confidential; provided, however, Landlord may share the information contained within such records with its legal counsel,
accountants and employees, prospective purchasers and lenders, and as may otherwise be required by applicable law. 
 (n) OFAC
Compliance. 
 (1) Tenant represents and warrants that to Tenant’s knowledge (a) Tenant is (i) not currently identified on
the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and/or on any other similar list maintained by OFAC pursuant to any authorizing
statute, executive order or regulation (collectively, the “List”), and (ii) not an entity with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other
prohibition of United States law, regulation, or Executive Order of the President of the United States, (b) none of the funds or other assets of Tenant constitute property of an Embargoed Person (as hereinafter defined), and (c) none of
the funds of Tenant have been derived from any unlawful activity with the result that the investment in Tenant is prohibited by law or that the Lease is in violation of law. The term “Embargoed Person” means any person, entity or
government subject to trade restrictions under U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any
Executive Orders or regulations promulgated thereunder with the result that Tenant is in violation of law. 

 (2) Tenant covenants and agrees (a) to comply with all requirements of law relating to money
laundering, anti-terrorism, trade embargos and economic sanctions, now or hereafter in effect, (b) to immediately notify Landlord in writing upon Tenant’s actual knowledge that any of the representations set forth in this paragraph or the
preceding paragraph are no longer true or have been breached or if Tenant has a reasonable basis to believe that they may no longer be true or have been breached, (c) not to knowingly use funds from any “Prohibited Person” (as such
term is defined in the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) to make any payment due to Landlord under the Lease and (d) at the
request of Landlord, to provide such information as may be reasonably requested by Landlord to determine Tenant’s compliance with the terms hereof. 
 (3) Tenant shall use good faith, commercially reasonable efforts to not knowingly permit the Premises or any portion thereof to be used or occupied by any person or entity on the List or by any Embargoed Person (on a
permanent, temporary or transient basis). 
 In connection with any proposed assignment of this Lease or sublease, Tenant shall provide to Landlord the names
of any proposed assignee or sublessee, as applicable, for purposes of compliance with Presidential Executive Order 13224 (issued September 24, 2001), as amended. 
 (o) Landlord’s Waiver. At Tenant’s request, provided no Tenant default has occurred and is continuing hereunder, Landlord shall execute and deliver within thirty (30) days after written request
therefor, a “landlord waiver” or “consent” form in favor of Tenant’s lender in a commercially reasonable form acceptable to Landlord which form shall include Landlord’s disclaimer of any interest in the personal
property of Tenant provided no leasehold mortgage is recorded in connection with any such Tenant financing. 
 36. SEVERABILITY. 

If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be
valid and enforced to the fullest extent permitted by law notwithstanding the invalidity of any other term or provision hereof. 
 37. REVIEW
OF DOCUMENTS. 
 Except as otherwise expressly provided in this Lease, if, following the execution of this Lease, either party hereto requests
that the other party execute any document or instrument that is other than (i) a document or instrument the form of which is attached hereto as an exhibit, or (ii) a document that solely sets forth facts or circumstances that are
then existing and reasonably ascertainable by the requested party with respect to the Lease, then the party making such request shall be responsible for paying the out-of-pocket costs and expenses, including without 

 limitation, the attorneys’ fees, incurred by the requested party in connection with the review (and, if applicable,
the negotiations) related to such document(s) or instrument(s), regardless of whether such document(s) or instrument(s) is (are) ever executed by the requested party. In the event the requesting party is Tenant, all such costs and expenses incurred
by Landlord in connection with its review and negotiation of any such document(s) or instrument(s) shall be deemed to be additional rental due hereunder and shall be payable by Tenant promptly upon demand. 
 38. RIGHT OF FIRST OFFER. 
 Provided
(i) no Tenant default has occurred and is continuing hereunder, and (ii) Tenant has not assigned this Lease nor sublet all or any portion of the Premises (other than an assignment or sublease to an affiliated entity which controls, is
controlled by, or under common control with, Tenant), Tenant shall have a continuing right of first offer to lease the space contiguous to the Premises in the Building as more particularly described on Exhibit “A-2” attached hereto
and incorporated herein by reference (the “Expansion Space”) at such time as said Expansion Space becomes available for lease during the Lease Term and any extensions thereof. At such time as the Expansion Space initially becomes available
for lease and prior to marketing the Expansion Space for lease to the general public, Landlord shall notify Tenant in writing of Landlord’s intention to market the Expansion Space and the rental rate and terms and conditions of lease which
Landlord intends to propose for the Expansion Space (collectively, the “Offer Terms”). 
 Tenant shall have five (5) business
days after its receipt of such written notice from Landlord (the “Letter of Intent Negotiation Period”) in order to negotiate with Landlord to enter a mutually acceptable letter of intent to lease the Expansion Space based on the Offer
Terms. Landlord shall not, during the Letter of Intent Negotiation Period, lease, offer to lease or agree to lease the Expansion Space to any other party unless Tenant advises Landlord that Tenant is not interested in leasing the Expansion Space in
accordance with the Offer Terms. In the event that Tenant does not agree to such Offer Terms during the Letter of Intent Negotiation Period, then, after such period, Landlord may market the Expansion Space upon such terms and conditions as are
reasonably acceptable to Landlord Tenant shall have no further rights with respect to the Expansion Space until such time as the Expansion Space again becomes available for lease, whereupon Tenant shall again have the option to exercise this right
of first offer. 
 In the event Tenant agrees to the Offer Terms within the Letter of Intent Negotiation Period as hereinabove described,
then Tenant and Landlord will negotiate in good faith and with due diligence an agreement for the lease of the Expansion Space. Landlord shall not, during the thirty (30) day period immediately following Tenant’s agreement to the Offer
Terms (the “Lease Negotiation Period”), lease, offer to lease or agree to lease the Expansion Space to any other party. In the event that Landlord and Tenant are unable in good faith to agree to the terms of such lease within the Lease
Negotiation Period, then thereafter Landlord may market the Expansion Space upon such terms and conditions as are reasonably acceptable to Landlord whereupon Tenant shall have no further rights with respect to the Expansion Space until such time as
the Expansion Space again becomes available for lease, whereupon Tenant shall again have the option to exercise this right of first offer. 

 39. SECURITIES EXCHANGE COMMISSION. 
 Tenant shall have the right to file this Lease, as amended, when and if so required by any local, state or federal agency, department, law, ordinance or
regulation, including, but not limited to, the Securities Exchange Commission. 
 [signatures appear on following page] 

 IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed and sealed pursuant to
authority duly given as of the day and year first above written. 
  

					
	“LANDLORD”
	
	 ROYAL CENTER IC, LLC,
 a Delaware limited
liability company

		
	By:	 	PRINCIPAL REAL ESTATE INVESTORS, LLC, a Delaware limited liability company, its authorized agent
			
		 	By:	 	 /s/ Joseph E. Pierce

		 	Its:	 	Joseph E. Pierce President
		 		 	Regional Director-Asset Management
			
		 	By:	 	 /s/ Mark F. Schotz

		 	Its:	 	Mark F. Schotz President
		 		 	 Investment Director
 Asset
Management

		 	Date:	 	Nov 30 2006
	
	“TENANT”
	
	 INSPIRE PHARMACEUTICALS, INC.,
 a Delaware
corporation

		
	By:	 	 /s/ CHRISTY L. SHAFFER

	Name:	 	CHRISTY L. SHAFFER, Ph.D
	Its:	 	President

 EXHIBIT “A-1” 
 (ATTACH PORTION OF PLANS AND OUTLINE 
 THE PREMISES IN RED INK FOR IDENTIFICATION
PURPOSES) 

 

 

 EXHIBIT “A-2” 
 EXPANSION SPACE 

 

 

 EXHIBIT “B” 
 [INTENTIONALLY DELETED] 

 EXHIBIT “C” 
 CONSTRUCTION PLANS 
 [To be attached] 

 EXHIBIT “D” 
 RULES AND REGULATIONS 
 The following rules and regulations have been adopted by the Landlord for the care,
protection and benefit of the Building and for the general comfort and welfare of the tenants. These Rules and Regulations shall remain in full force and effect until Tenant is notified in writing by Landlord of any changes and amendments. To the
extent any of the Rules and Regulations set forth herein are inconsistent with the provisions of the Lease, the terms and conditions of the Lease shall prevail. 
 1. The sidewalks, entrances, halls, passages, elevators and stairways shall not be obstructed or used by Tenant for any other purpose than for ingress and egress. All loading and unloading of goods, furniture,
fixtures, equipment and supplies shall be done only in areas and through entrances designated for such purposes. 
 2. Toilet rooms and other
plumbing facilities shall not be used for any purpose other than those for which they are constructed and no foreign substance of any kind shall be disposed of therein. All repairs required due to breakage, stoppage or damage resulting from a
violation of this provision shall be at Tenant’s sole expense. 
 3. Tenant shall not do anything in the Premises, or bring or keep
anything therein, which shall in any way conflict with any law, ordinance, rule or regulation affecting the occupancy and use of the Premises, which are or may hereafter be enacted or promulgated by any public authority or by the Board of Fire
Underwriters. 
 4. Tenant shall at all times maintain an adequate number of suitable fire extinguishers on the Premises for use in case of
local fires, including electrical fires. 
 5. Tenant shall keep the Premises heated at a temperature sufficiently high to prevent freezing
of water in pipes and fixtures. 
 6. Trucks shall not be allowed to remain overnight in the Common Areas whether loaded, unloaded or
otherwise, without Landlord’s prior written consent. 
 7. All garbage and refuse shall be placed for collection in containers specified
by Landlord outside the Premises or Building. Tenant shall pay the cost of removal of any of Tenant’s refuse or rubbish. 
 8. Tenant
shall, at Tenant’s expense, provide for regular pest extermination to the Premises and shall provide Landlord with a copy of such extermination contract. 

 9. In order to insure proper use and care of the Premises, neither the Tenant nor agent nor employee of
Tenant shall: 
 (a) Allow any furniture, packages or articles of any kind to remain in corridors except for short periods incidental to
moving same in or out of Building or to cleaning or rearranging occupancy of leased space. 
 (b) Mark or defile elevators, toilet rooms,
walls, windows, doors or any part of the Building. 
 (c) Except for “seeing-eye” dogs, keep animals or birds on the Premises.

 (d) Deposit waste paper, dirt or other substances in corridors, stairways, elevators, toilets, restrooms, or any other part of the
Building not leased by Tenant. 
 (e) Except for pictures, wall hangings and other customary decorations and items which would not cause
permanent damage to the structural elements of the Building, fasten any article, drill holes, drive nails or screws into walls, floors, doors, or partitions or otherwise mar or deface them by paint, papers or otherwise, without Landlord’s prior
written consent. 
 (f) Operate any machinery within the Building except customary warehouse, training and office equipment, such as
computers, dictaphones, calculators, electric typewriters, televisions, video cassette recorders and the like. Special equipment or machinery used in the trade or profession of the Tenant may be operated only with Landlord’s prior written
consent. 
 (g) Leave Premises unoccupied without locking all exterior doors and turning off all water outlets. 
 (h) Burn any trash, refuse, debris or garbage of any kind in or about the Premises or Building. 
 (i) Attach awnings, air-conditioning units or other fixtures to the outside walls or window sills, or otherwise affix such so as to project from the
Premises or Building without Landlord’s prior written consent. 
 (j) Except for Tenant’s installation of a key card security
system, install additional locks or bolts of any kind on any doors or windows of the Premises without Landlord’s prior written consent. On the termination of Tenant’s tenancy, Tenant shall deliver to Landlord all keys to the Premises,
either furnished to or otherwise procured by Tenant. 
 (k) Install or operate any engine, boiler, machinery, or stove, or use oil or any
burning fluid (other than gas) for heating, warming or lighting, or use any lighting other than incandescent or fluorescent electric lights, on the Premises without Landlord’s prior written consent. All stoves permitted in the Premises shall be
placed and installed according to city ordinances. No articles deemed extra hazardous on account of fire, and no explosives, shall be brought into the Premises. 
 (l) Use loudspeakers, televisions, radios or other devices in such a manner as to be heard outside the Premises, or make, or permit to be made, any unseeming or disturbing noises, nuisance or other activity
objectionable to other tenants. 

 (m) Use the Premises for the purpose of lodging or sleeping rooms, or for any illegal purposes.

 (n) Install any aerial, antenna, satellite dish or other equipment or structure on the roof or exterior walls of the Premises, or on the
grounds without, in each instance, the prior written consent of Landlord. Any installation so made without such prior written consent shall be subject to removal without notice at any time, at Tenant’s expense. 
 10. Landlord shall have the right to prohibit any advertising by Tenant which, in its opinion, shall damage the reputation of the Building or its
desirability, and upon written notice from Landlord, Tenant shall discontinue any such advertising. 
 11. Except for deliveries in the
ordinary course of Tenant’s business, Landlord reserves the right to designate the time when and method whereby freight, furniture, safes, goods, merchandise and other articles may be brought into, moved or taken from the Building and the
Premises leased by Tenant; and workmen employed, designated or approved by Landlord must be employed by Tenants for repairs, painting, material moving and other similar work that may be done on the Premises. 
 12. Tenant will reimburse Landlord for the cost of repairing any damage to the Premises or other parts of the Building caused by Tenant or the agents or
employees of Tenant, including replacing any glass broken. 
 13. Tenant shall not install in the Premises any metal safes or permit any
concentration of excessive weight in any portion thereof without first having obtained the written permission of Landlord. 
 14. Landlord
reserves the right at all times to exclude newsboys, loiterers, vendors, solicitors and peddlers, from the Building or Common Areas and to require registration, satisfactory identification and credentials from all person seeking access to any part
of the Building or Common Areas outside of ordinary business hours. Ordinary business hours shall mean Monday through Friday, 7:30 a.m. to 6:30 p.m. and 8:00 a.m. through 1:00 p.m. on Saturday, except on legal holidays. Landlord shall exercise its
best judgment in the execution of such control but shall not be held liable for the granting or refusal of such access. Landlord reserves the right to exclude the general public from the Building after ordinary business hours and on weekends and
holidays. 
 15. The attaching of wires to the outside of the Building is absolutely prohibited, and no wires shall be run or installed in
any part of the Building without the Landlord’s permission and direction. 
 16. Requests for services of janitors or other Building
employees must be made to the Landlord. Agents or employees of Landlord shall not perform any work or do anything outside of their regular duties unless under special instructions from Landlord. 
 17. Signs or any other tenant identification shall be in accordance with building standard signage. No signs of any nature shall be placed in the windows
so as to be visible from the exterior of the Building. All signs not approved in writing by Landlord shall be subject to removal without notice. 

 18. Except as otherwise set forth in the Lease, any improvements or alterations to the Premises by Tenant
shall be approved in advance by Landlord and all such work, if approved, shall be done at Tenant’s sole expense under the supervision of Landlord. 
 19. Tenant shall have a non-exclusive right to use of all driveways and parking areas designated for Tenant and Tenant’s employees, if deemed necessary by Landlord. 
 20. If additional drapes or window decorations are desired by Tenant, they shall be approved by Landlord and installed at Tenant’s expense under the
direction of Landlord. Lining on drapes visible from the exterior shall be of a color approved by Landlord. 
 21. The possession of weapons,
including concealed handguns, is strictly forbidden on the Premises and Building. 
 22. Tenant shall not use nor permit the use of the
Common Areas by its employees, agents or invitees for the purpose of displaying or selling personal property, automobiles, equipment, furniture, fixtures, merchandise or any other item whether owned by Tenant or its employees, agents or invitees.

 23. Landlord reserves the right to rescind, amend, alter or waive any of the foregoing rules and regulations at any time in a reasonable
and nondiscriminatory manner, or make such other reasonable and non-discriminatory rules and regulations as, in its sole judgment it deems necessary, desirable or proper for its best interest and for the best interests of the tenants, or as may from
time to time be necessary for the safety, care and cleanliness of the Premises, the Building or adjacent areas, and for the preservation of good order therein. Any such recission, amendment, alteration or waiver of any rules or regulations or
creation of any such new rules or regulations shall be effective five (5) days after all tenants have been given written notice thereof. Landlord shall not be responsible to any tenant for the non-observance or violation by any other tenant of
any of these rules and regulations at any time. 

 EXHIBIT “E” 
 OPTION TO EXTEND 
 1. Notice and Exercise. Provided no Tenant default has occurred and is continuing under
this Lease beyond any applicable cure period and Tenant has not assigned this Lease nor sublet all or any portion of the Premises, Tenant is hereby granted the option to extend the Term once for an additional period of three (3) years (the
“Extension Term”) commencing upon the expiration of the initial Term on the same terms and conditions as contained in the other provisions of this Lease other than any upfitting allowance (Tenant accepting the Premises in its “as,
is” condition but shall have the right to alter the Premises as set forth in Section 5 of this Lease), additional renewal options and as otherwise provided in this Section. This option shall be exercised only by delivery of written notice
(the “Renewal Notice”) to Landlord no later than nine (9) months prior to the scheduled Expiration Date referred to in Section 1(f) of this Lease. The Minimum Rental for the Premises shall be the then fair market rental
(“Market Rate”) applicable to the Premises, and the Operating Expense Stop shall be adjusted to the extent reflected in the Minimum Rental for the Extension Term. Except as otherwise set forth herein, Tenant’s occupancy of the
Premises during the Extension Term shall be subject to all other terms and conditions of this Lease, expressly including without limitation, the obligation to pay its proportionate share of the Tenant Expenses. 
 2. Determination of Market Rate. For purposes of this Exhibit “E”, the term “Market Rate” shall mean the annual amount per
rentable square foot that comparable landlords of comparable buildings have accepted in then-current transactions between non-affiliated parties from new, non-expansion, non-renewal (unless the lease involved a procedure invoked by landlord and
tenant for a 100% determination of “fair market rental”) and non-equity tenants of comparable credit-worthiness, for comparable space (excluding any removable personal property), for a comparable use, for a comparable period of time
(“Comparable Transactions”) in the Raleigh/Durham area. In any determination of Comparable Transactions appropriate consideration shall be given to the annual rental rates per rentable square foot, the standard of measurement by which the
rentable square footage is measured, the ratio of rentable square feet to usable square feet, the type of escalation clause implemented, the extent of tenant’s liability under the lease, abatement provisions reflecting free rent and/or no rent
during the period of construction or subsequent to the commencement date as to the space in question, parking considerations, length of the lease term, size and location of premises being leased, building standard work letter and/or tenant
improvement allowances, if any, or any other tenant concessions and other generally applicable conditions of tenancy for such Comparable Transactions. The intent is that Tenant will obtain the same rent and other economic benefits that Landlord
would otherwise give in Comparable Transactions and that Landlord will make, and receive the same economic payments and concessions that Landlord would otherwise make, and receive in Comparable Transactions. 
 Landlord shall determine the Market Rate by using its good faith judgment. Landlord shall provide written notice of such amount within thirty
(30) days (but in no event later than forty-five (45) days) after Tenant provides the notice to Landlord exercising Tenant’s option rights which require a calculation of the Market Rate. Tenant shall have thirty (30) days

 (“Tenant’s Review Period”) after receipt of Landlord’s notice of the new rental within which to
accept such rental or to object thereto in writing. In the event Tenant objects, Landlord and Tenant shall attempt to agree upon such Market Rate using their best good faith efforts. If Landlord and Tenant fail to reach agreement within thirty
(30) days following Tenant’s Review Period (“Outside Agreement Date”), then each party shall place in a separate sealed envelope its final proposal as to Market Rate and such determination shall be submitted to arbitration in
accordance with subsections (a) through (e) below. Failure of Tenant to so accept in writing such rental within Tenant’s Review Period shall conclusively be deemed its disapproval of the Market Rate determined by Landlord. 

(a) Landlord and Tenant shall meet with each other within five (5) business days of the Outside Agreement Date and exchange the
sealed envelopes and then open such envelopes in each other’s presence. If Landlord and Tenant do not mutually agree upon the Market Rate within two (2) business days of the exchange and opening of envelopes, then, within ten
(10) business days of the exchange and opening of envelopes Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate appraiser, lawyer or broker who shall have been active over the
five (5) year period ending on the date of such appointment in the leasing of comparable commercial properties in the vicinity of the Building. Neither Landlord nor Tenant shall consult with such broker or lawyer as to his or her opinion as to
Market Rate prior to the appointment. The determination of the arbitrator shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rate for the Premises is the closer to the actual Market Rate for the
Premises as determined by the arbitrator, taking into account the requirements of this Section 2. Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion, determines is necessary. In
addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within five (5) business days after the appointment of the arbitrator any market data and additional information that such party deems relevant to the
determination of Market Rate (“MR Data”) and the other party may submit a reply in writing within five (5) business days after receipt of such MR Data. 
 (b) The arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties shall use
Landlord’s or Tenant’s submitted Market Rate, and shall notify Landlord and Tenant of such determination. 
 (c) The
decision of the arbitrator shall be binding upon Landlord and Tenant. 
 (d) If Landlord and Tenant fail to agree upon and
appoint an arbitrator, then the appointment of the arbitrator shall be made by the Presiding Judge of the Superior Court, or, if he or she refuses to act, by any judge having jurisdiction over the parties. 
 (e) The cost of arbitration shall be paid by Landlord and Tenants equally. 
 Immediately after the Minimum Rent for the applicable Extension Term is determined pursuant to this Exhibit, Landlord and Tenant shall execute an
amendment to the Lease stating the new Minimum Rent in effect. 

 EXHIBIT “F” 
 DEPICTION OF PARK DIRECTORY SIGNAGE 
 [to be attached] 

 

 

 EXHIBIT “G” 
 HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE 
 Your cooperation in this matter is
appreciated. Initially, the information provided by you in this Hazardous Materials Disclosure Certificate is necessary for the Lessor (identified below) to evaluate and finalize a lease agreement with you as Lessee. After a lease agreement is
signed by you and the Lessor (the “Lease Agreement”), on an annual basis in accordance with the provisions of Section 5 of the signed Lease Agreement, you are to provide an update to the information initially provided by you in this
certificate. The information contained in the initial Hazardous Materials Disclosure Certificate and each annual certificate provided by you thereafter will be maintained in confidentiality by Lessor subject to release and disclosure as required by
(i) any lenders and owners and their respective environmental consultants, (ii) any prospective purchaser(s) of all or any portion of the property on which the Premises are located, (iii) Lessor to defend itself or its lenders,
partners or representatives against any claim or demand, and (iv) any laws, rules, regulations, orders, decrees, or ordinances, including, without limitation, court orders or subpoenas. Any and all capitalized terms used herein, which are not
otherwise defined herein, shall have the same meaning ascribed to such term in the signed Lease Agreement. Any questions regarding this certificate should be directed to, and when completed, the certificate should be delivered to: 
  

			
	 Lessor:
	 	  

		 	c/o Tri Properties, Inc.
		 	4309 Emperor Blvd., Suite 110
		 	Durham, North Carolina
		 	Attn: Property Manager
		 	Phone: (919) 941-9616

 Name of (Prospective) Lessee:                               
                                        
                                        
                                        
                                        
        
 Mailing Address:                                   
                                        
                                        
                                        
                                        
                              
                                       
                                        
                                        
                                        
                                        
                                        
                    
 Contact Person, Title and Telephone Number(s):
                                        
                                        
                                        
                 
 Contact Person for Hazardous Waste Materials Management and Manifests and Telephone Number(s):             
                                    
 ________________________________________________________________________________________________________ 
 Address of (Prospective) Premises:                              
                                        
                                        
                                        
                                        

 Length of (Prospective) initial Term:                             
                                        
                                        
                                        
                                      
                                       
                                        
                                        
                                        
                                        
                                        
                    

	1.	GENERAL INFORMATION: 

 Describe the initial proposed
operations to take place in, on, or about the Premises, including, without limitation, principal products processed, manufactured or assembled, services and activities to be provided or otherwise conducted. Existing Lessees should describe any
proposed changes to ongoing operations. (Attached additional sheets if necessary). 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
  

	2.	USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS 

  

	 	2.1	Will any Hazardous Materials be used  ̈, generated  ̈, stored  ̈ or disposed of  ̈ in, on or about the Premises? (Note: Generally all storage will be required to be fully contained). Existing Lessees should describe any Hazardous
Materials which continue to be used, generated, stored or disposed of in, or about the Premises. 

  

			
	Wastes	  	Yes   ̈        
No   ̈
	Chemical Products	  	Yes   ̈        
No   ̈
	Other	  	Yes   ̈        
No   ̈

 If yes is marked attached all MSDS’s and please explain: (MSDS’s Attached  ̈), 
 _________________________________________________________________________________________________________ 
 _________________________________________________________________________________________________________ 
 _________________________________________________________________________________________________________ 
  

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

 Attach a Site Plan indicating all storage areas - (Attached  ̈). 
  

	3.	STORAGE TANKS AND SUMPS 

  

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

 Yes   ̈         No   ̈ 
 If yes, please explain:
                                        
                                        
                                        
                                        

 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 

	4.	WASTE MANAGEMENT 

  

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

 Yes   ̈        No   ̈ 
 Describe RCRA status:
                                        
                                        
                                        
                                 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
  

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

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

	5.	WASTEWATER TREATMENT AND DISCHARGE 

  

	 	5.1	Will your company discharge wastewater or other wastes to: 

  

			
	            storm drain?	  	            sewer?
	            surface water?	  	            facility treatment plant?
	            grounds	  	            no wastewater or other
	(i.e., compressor blow-down)	  	            wastes discharged

 Existing Lessees should indicate any actual discharges. If so, describe the nature of any proposed
or actual discharge(s). (Note: Generally, discharges to storm drains will be prohibited without prior review and approval from Landlord). 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
  

	6.	AIR DISCHARGES 

  

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

 Yes   ̈         No   ̈ 

 If yes, please explain:                                
                                        
                                        
                                        
                              
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

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

  

			
	             Spray booth(s)	  	             Incinerator(s)
	             Dip tank(s)	  	             Drycleaning
	             Drying oven(s)	  	             Other (please describe)
		  	             No Equipment Requiring Air Permits

 If yes, please explain:                                
                                        
                                        
                                        
                              
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

	 	6.3	Do any of your operations generate an obvious odor: 

 Yes   ̈         No   ̈ 
 If yes, please explain:                                
                                        
                                        
                                        
                          
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
  

	7.	HAZARDOUS MATERIALS DISCLOSURES 

  

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

 Yes   ̈         No   ̈ 
 If yes, attach a copy of the Management Plan. Existing Lessees
should attach a copy of any required updates to the Management Plan. 
  

	 	7.2	(CA Only) Are any of the Hazardous Materials, and in particular chemicals, proposed to be used in your operations in or about the premises regulated under Proposition ‘65?
Existing tenants should indicate whether or not there are any new hazardous materials being used which are regulated under Proposition ‘65. 

 Yes   ̈         No   ̈ 

 If yes, please explain:                                
                                        
                                        
                                        
                              
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

	8.	ENFORCEMENT ACTIONS AND COMPLAINTS 

  

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

 Yes   ̈         No   ̈ 
 If yes, describe the actions, orders or decrees and any continuing
compliance obligations imposed as a result of these actions, orders or decrees and also describe any requests, notices or demands, and attach a copy of all such documents. Existing Lessees should describe and attach a copy of any new actions,
orders, decrees, requests, notices or demands not already delivered to Lessor pursuant to the provisions of Section              of the signed Lease Agreement. 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

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

 Yes   ̈         No   ̈ 
 If yes, describe any such lawsuits and attach copies of the complaint(s), cross-complaint(s), pleadings and all other documents related thereto as
requested by Lessor. Existing Lessees should describe and attach a copy of any new complaint(s), cross-complaint(s), pleadings and other related documents not already delivered to Lessor pursuant to the provisions of Section
             of the signed Lease Agreement. 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

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

 Yes   ̈         No   ̈ 

 If yes, please describe. Existing Lessees should describe any such problems or complaints not already
disclosed to lessor under the provisions of the signed lease. 
  
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  
  

	 	8.4	Please provide the addresses for each space leased by your Company in the past ten years the name and phone number of each lessor. 

  

	9.	PERMITS AND LICENSES 

  

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

  

	10.	STATE AND LOCAL REQUIREMENTS 

  

	 	10.1	(This Section reserved for any requirements unique to a State or Local control agency) 

 The undersigned hereby acknowledges and agrees that this Hazardous Materials Disclosure Certificate is being delivered in connection with, and as required by, Lessor in connection with the evaluation and finalization
of a Lease Agreement and will be attached thereto as an exhibit. The undersigned further acknowledges and agrees that this Hazardous Materials Disclosure Certificate is being delivered in accordance with, and as required by, the provisions of
Section 5 of the Lease Agreement. The undersigned further acknowledges and agrees that the Lessor and its partners, lenders and representatives may, and will, rely upon the statements, representations, warranties, and certifications made herein
and the truthfulness thereof in entering into the Lease Agreement and the continuance thereof throughout the term, and any renewals thereof, of the Lease Agreement. I,
                                , acting with full authority to bind the
(proposed) Lessee and on behalf of the (proposed) Lessee, certify, represent and warrant that the information contained in this certificate is true and correct. 
 (PROSPECTIVE) Lessee: 
  

			
	By	 	  

	Title	 	  

	Date:

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