Document:

exv10w6

 

 Exhibit 10.6

METAMORPHIX, INC.

Amended and Restated

1995 Non-Qualified Officer, Director, Employee, 

and Consultant Stock Option Plan

(March 29, 2005)

1. Purpose.

     The purpose of MetaMorphix, Inc.’s 1995 Non-Qualified Officer, Director, Employee, and
Consultant Stock Option Plan (the “Plan”) is to advance the interests of MetaMorphix, Inc. (the
“Corporation”), by encouraging and enabling selected officers, directors, employees, and
consultants of the Corporation, upon whose judgment, initiative, and effort the Corporation is
largely dependent for the successful conduct of its business, by giving them an inducement to
acquire a proprietary interest in the Corporation. Options granted under the Plan are intended to
be options that do not meet the requirements of Section 422 of the Internal Revenue Code of 1986,
as amended.

2. Grant of options; administration.

     The Corporation hereby authorizes the grant of stock options to officers, directors,
employees, and consultants of the Corporation (the “Optionees”), subject to the terms and
conditions of this Plan. The Board of Directors shall have full power and authority, by resolution
of the Board of Directors, to designate participants and to determine the specific terms and
provisions of certain grants of options. The date upon which any option is granted pursuant to
this Plan shall be known as the “Grant Date” with respect to the particular option granted.

3. Number of option shares; vesting.

     The aggregate number of shares of the Corporation’s common stock that may be issued upon the
exercise of options granted under the Plan shall not exceed Three Million Fifty Thousand
(3,050,000), subject to adjustment under the provisions of paragraph 7 below. The shares of common
stock to be issued upon the exercise of options (the “Option Shares”) may be authorized but
unissued shares, shares issued and reacquired by the Corporation, or shares bought on the market
for the purposes of the Plan. In the event that any option shall, for any reason, terminate or
expire or be surrendered without having been exercised in full, the shares subject to such option
but not purchased thereunder shall again be available for options to be granted under the Plan.
The options shall entitle the Optionees to purchase the designated number of Option Shares at a
price equal to Two Cents ($.02) per share (or such greater price as maybe established, from time to
time, by the Board of Directors).

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     Subject to such further limitations as are provided herein, any option granted hereunder shall
vest over a four (4) year period, with twenty-five percent (25%) of the Option Shares being
eligible for purchase on or after the following dates, in cumulative fashion:

	 	(a)  	on and after the first anniversary of the Grant Date, one-fourth (with rounding
up to the nearest full number to avoid issuances of fractional shares) of the total
number of Option Shares;
	 
	 	(b)  	on and after the second anniversary of the Grant Date, one-half (rounding up to
the nearest full number to avoid issuances of fractional shares) of the total number of
Option Shares;
	 
	 	(c)  	on and after the third anniversary of the Grant Date, three-fourths (rounding
up to the nearest full number to avoid issuances of fractional shares) of the total
number of Option Shares; and
	 
	 	(d)  	on and after the fourth anniversary of the Grant Date, the remaining Option
Shares.

     By resolution, the Board of Directors, when granting an option, may provide that the option
vest over a longer or shorter period than four years and may provide that options may vest on a
quarterly or monthly basis. Upon and after the date on which the Optionee’s employment (in the
case of an officer or employee), association (in the case of a director), or engagement (in the
case of a consultant) with the Corporation is terminated, no additional vesting shall occur
(unless, if approved by the Board of Directors, such person continues his or her relationship with
the Corporation in a different capacity). Notwithstanding anything in the foregoing to the
contrary, however, the vesting of any stock option to a resigning director shall accelerate through
his next anniversary date of service (unless the Board, for “good cause” shown, resolves
otherwise).

4. Time of exercise of options.

     An option, upon vesting, may be exercised at any time, and from time to time, in whole or in
part, subject to the limitations set forth in this Plan, until the termination thereof, as provided
in paragraph 6 below.

5. Method of exercise.

     The options shall be exercised by the Optionees by providing written notice directed to the
Corporation’s President, at the Corporation’s principal place of business, accompanied by delivery
of a check in payment of the option price for the number of Option Shares specified. The notice
shall be in the form of correspondence that is attached hereto as Exhibit A (or otherwise
acceptable to the President or other executive officers). The Corporation shall, as soon as
reasonably practicable, deliver certificates for such Option Shares.

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6. Expiration of options.

     The options, to the extent not previously exercised, unless otherwise provided by resolution
of the Board of Directors when granting such option, or on a later date, shall expire and terminate
upon the earlier to occur of (a) the date on which the Optionee’s employment (in the case of an
officer or employee), or engagement (in the case of a consultant) with the Corporation is
terminated or (b) the fifth (5th) anniversary of the Grant Date of the option (or such other
anniversary date as may be determined by the Board of Directors upon the granting of an Option).
Options granted to directors do not expire and terminate upon the ending of such association
(although, as set forth in Section 3, additional vesting may or may not thereafter occur). In the
event of a termination due to death or disability, however, no additional vesting shall occur, but
the personal representative, guardian, or other such person, until the first anniversary of such
termination due to death or disability, may exercise such option; provided,
however, that this one-year exercise period shall not extend the period set forth in part
(b) of the first sentence of this paragraph. For purposes of this Plan, the “date of disability”
shall mean the date the Optionee’s employment or association with the Corporation is terminated
pursuant to written advice from a licensed physician.

7. Adjustments.

     If and to the extent that the number of issued shares of common stock of the Corporation shall
be increased or reduced by change in par value, stock split, reclassification, distribution of a
dividend payable in stock, or the like, the number of Option Shares and the option price per share
hereunder shall be proportionately adjusted.

8. Acceleration of Vesting, Termination of Options, and Exercise of Options Under Certain
Events.

     In the event of (a) a “Change of Control” of the Corporation as a result of a merger,
consolidation, or any other event or series of events or (b) a sale or other disposition by the
Corporation of all or substantially all of the assets of the Corporation, each option under the
Plan shall terminate simultaneously with the happening of such event; provided,
however, the Corporation will issue a “Notice of Termination” to the Optionee with respect
to the options granted hereunder. Such notice shall give the Optionee the right, for a period of
thirty (30) days after the date of the Notice, to exercise all of the option shares granted to the
Optionee pursuant to the Plan; provided, however, that the vesting of any and all
options previously granted to the Optionees shall be automatically accelerated as of the date
immediately prior to the sending of the Notice of Termination. For purposes of this Section 8, the
term “Change of Control” shall mean a transaction, after which, any one or more persons acting
together collectively own an interest of greater than 50% of the Company’s voting power which such
person(s) did not own prior to such transaction.

9. Rights prior to exercise of options.

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     Except as provided herein, the options granted under this Plan are nontransferable by the
Optionees, and are exercisable only by each Optionee. An Optionee shall have no rights as a
stockholder with respect to the Option Shares until payment of the option price as herein provided;
however, if any law or regulation requires the Corporation to take any action with respect to such
Option Shares before their issuance, then the Optionee shall have no rights as a stockholder until
such necessary action is taken.

10. Restriction on transfer of options.

     No option shall be transferable or assignable by an Optionee, otherwise than by will or the
laws of descent and distribution. No option shall be pledged or hypothecated in any way and no
option shall be subject to execution, attachment, or similar process except with the express
consent of the Board of Directors of the Corporation.

11. Terms of employment or association.

     The granting of an option to an eligible person does not alter in any way the Corporation’s
existing rights to terminate such person’s employment or association at any time for any reason or
for no reason, nor does it confer upon such person any rights or privileges except as specifically
provided for in the Plan.

12. Securities requirements.

     The shares of common stock of the Corporation to be issued under this Plan will be issued to
the Optionees pursuant to registration exemption provisions contained in the Securities Act of
1933, as amended. As a condition to receiving any shares pursuant to the terms hereof, the
Optionee, prior to receiving said shares, will be required to represent, warrant, and acknowledge
to the Corporation that:

	 	(a)  	The Optionee is purchasing the shares for investment only, for his own account,
and not with a view to the sale or distribution thereof.
	 
	 	(b)  	The Optionee is aware that the Corporation is under no obligation to register
the shares under the Securities Act of 1933, as amended, that the shares cannot be sold
or otherwise transferred unless they are registered under the Act or unless an
exemption from registration is available, and that one or more legends setting forth
the restrictions on the transferability of the shares will appear on the certificate
for the shares.

13. Effective date; term of Plan.

     This Plan, which was adopted by the Board of Directors on December 12, 1995, was effective as
of April 18, 1995, was amended by the Board of Directors on or as of April 4, 1996, December 1,
2000, May 11, 2001, and July 27, 2004, and was amended on or as of other dates in respect to
increases in the reserve of shares for the Plan. Amendments to

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the Plan shall become effective when adopted by the Board of Directors. Unless the Plan shall
theretofore have been terminated by the Board of Directors, the Plan shall terminate ten (10) years
after the date of the last amendment to the provisions of the Plan, i.e., ten (10) years after July
27, 2004. In the event of such termination, however, the Plan shall continue in effect with
respect to any theretofore previously granted Options that have not yet expired and terminated
pursuant to Section 6 of this Plan.

14. Amendment, suspension, or termination of Plan.

     The Corporation’s Board of Directors may at any time suspend or terminate this Plan or may
amend it from time to time in such respects as the Board may deem advisable, in order that the
options granted hereunder may conform to any changes in the law, or in any other respect which the
Board may deem to be in the Corporation’s best interests. No amendment, suspension, or termination
of the Plan shall, without the Optionees’ consent, alter, or impair any of the rights or
obligations under the options granted to such Optionees hereunder.

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15. Governing law.

     This Plan shall be governed by and construed in accordance with the laws of the State of
Delaware.

	 	 	 
	

	 	Adopted by the Board of Directors of
MetaMorphix, Inc. on December 12, 1995 (effective as
of April 18, 1995)
	 
	 	 
	

	 	Amended and Restated by the Board of Directors as of
April 4, 1996
	 
	 	 
	

	 	Amended by the Board of Directors (as to number of
shares reserved) on or as of January 27, 1998,
March 24, 1999, January 14, 2000,
February 17, 2000, and December 1, 2000
	 
	 	 
	

	 	Amended and Restated by the Board of Directors on
December 1, 2000
	 
	 	 
	

	 	Amended by the Board of Directors as of May 11, 2001
	 
	 	 
	

	 	Amended by the Board of Directors (as to number of
shares reserved) on or as of September 5, 2001, June
3, 2002, September 5, 2002, and September 8, 2003
	 
	 	 
	

	 	Amended by the Board of Directors on July 27, 2004
	 
	 	 
	

	 	Amended by the Board of Directors (as to number of
shares reserved) on March 29, 2005
	 
	 	 
	

	 	Restated as of March 29, 2005

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EXHIBIT A

EXERCISE OF OPTION TO PURCHASE COMMON STOCK

___________, 20_____

To: The President of MetaMorphix, Inc.

          [Address]

          [City, State Zip]

     The undersigned, the holder of record of an option to purchase shares of common stock of
METAMORPHIX, INC. (the “Corporation”), hereby exercises this option granted pursuant to the Amended
and Restated 1995 Non-Qualified Officer, Director, Employee, and Consultant Stock Option Plan (the
“Plan”) to purchase, upon the terms set forth in such Plan and the resolutions granting such
options, ___shares of common stock of the Corporation and hereby tenders payment of
$___, which amount constitutes payment of the option price of $  per share for the
number of shares specified herein.

	 	 	 
	

	 	 
	

	 	[Name of Optionee]
	

	 	 
	 
	 	 
	

	 	 
	

	 	[Address of Optionee]

7exv10w7

 

Exhibit 10.7

SUBLEASE

          This Sublease, dated as of this 18th day of October, 2004, by and between Baxter
Healthcare Corporation (“Sublandlord”), a Delaware corporation, and MetaMorphix, Inc.,
(“Subtenant”), a Delaware corporation, is entered into with reference to the following facts:

Recitals

          A. Pursuant to that certain Lease dated February 6, 2001, by and between ARE-8000/9000/10000
VIRGINIA MANOR ROAD, LLC, a Delaware limited liability company (“Master Landlord”), as landlord,
and Sublandlord, as tenant, as amended by that certain First Amendment to Lease, dated as of April
30, 2001, that certain Second Amendment to Lease, dated as of April 30, 2002, that certain Third
Amendment to Lease, dated as of January 9, 2003 (collectively, the “Master Lease”), a copy of
which is attached hereto as Exhibit A, Sublandlord leases from Master Landlord approximately
109,521 rentable square feet of space (the “Master Space”) in two buildings located, respectively,
at 8000 and 9000 Virginia Manor Road, Beltsville, MD (collectively, the `Buildings”). Sublandlord
has agreed to sublet to Subtenant a portion of such Master Space, consisting of (i) 14,165
rentable square feet at 8000 Virginia Manor Road (Suite 140), and (ii) 16,215 rentable square feet
at 9000 Virginia Manor Road (Suite 207), for a combined total of approximately 30,380 rentable
square feet of space (collectively, the “Premises”), as more particularly shown on the floor plans
attached hereto as Exhibit B and incorporated herein by this reference.

          B. Sublandlord desires to sublease to Subtenant, and Subtenant desires to sublease from
Sublandlord, the Premises.

          In consideration of the foregoing Recitals, which are hereby deemed to be a substantive part
of this Sublease, and of the covenants and conditions set forth herein, Sublandlord and Subtenant
hereby agree as follows:

     1. Defined Terms. As used in this Sublease, the following capitalized terms have the
following meanings:

          “Commencement Date” means the date so defined in Section 3.1. “

          Security Deposit” means the deposit so defined in Section 4.5.

          “Expiration Date” means the date so defined in Section 3.2.

          “Premises” shall have the meaning set forth in the above Recitals.

          “Required Consents” means, collectively, all consents and other authorizations that are
legally required with respect to this Sublease.

 

 

          “Subtenant’s Percentage” means twenty-seven and seventy hundredths percent (27.7%)
(30,380/109,521), based on a fraction, the numerator of which is the rentable area of the Premises
and the denominator of which is the rentable area of the Master Space.

All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to
the same in the Master Lease.

     2. Sublease of Premises. Subject to the terms and conditions herein contained, Sublandlord
hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the Premises.

     3. Term and Possession.

          3.1 Commencement. The term of this Sublease shall commence on the later date to occur
of (i) November 15, 2004, or (ii) the date which is five (5) days after Sublandlord and
Subtenant receive Master Landlord’s written consent to this Sublease (such later date
being hereinafter referred to as, the “Commencement Date”). Sublandlord agrees to promptly
request such consent. Such consent shall constitute Master Landlord’s specific agreement
(i) that notwithstanding any default by Sublandlord under the Master Lease, so long as
Subtenant performs all of the terms, covenants and conditions of this Sublease, on
Subtenant’s part to be performed, Subtenant’s possession under the provisions of this
Sublease shall not be disturbed by Master Landlord, (ii) to provide Subtenant notices in
accordance with Section 7.6 below, and (iii) to Subtenant’s Hazardous Materials List
(which shall be delivered by Subtenant to Sublandlord together this Sublease, and
thereafter delivered by Sublandlord to Master Landlord for its review).

          3.2 Expiration. Unless sooner terminated in accordance with its terms, the term of
this Sublease shall expire at 12:00 Midnight on April 30, 2012 (the “Expiration Date”).
Notwithstanding the foregoing, or any other provisions of this Sublease or the Master
Lease to the contrary, Sublandlord agrees to relinquish its right to extend the term of
the Master Lease pursuant to Section 40 of the Master Lease Agreement.

     4. Rents and Charges. It is the intent of the parties that Subtenant pay all rent and other
costs payable under the Master Lease and allocable to the Premises during the term of this
Sublease. Accordingly, during the term of this Sublease, Subtenant shall pay to Sublandlord, at
the address given below for notices, without offset or deduction except as expressly provided in
this Sublease, the Basic Rent and Added Rent (as such terms are defined below-) as follows:

          4.1 Basic Rent. Subtenant shall pay to Sublandlord Basic Rent (“Basic Rent”)
for the term hereof in accordance with the schedule set forth below.

 

 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Monthly	 	 
	 	 	 	 	Installment of	 	 
	 	Period During	 	 	Basic Rent for	 	 
	 	Term of Sublease	 	 	the Premises	 	 
	 	11/15/04-11/30/04
	 	 	$	0.00	 	 
	 	12/1/04-12/31/04
	 	 	$	0.00	 	 
	 	1/1/05-1/31/05
	 	 	$	0.00	 	 
	 	2/1/05-2/15/05
	 	 	$	0.00	 	 
	 	2/16/05-2/28/05
	 	 	.$	11,292.59	 	 
	 	3/11/05-3/31/05
	 	 	 	30,814.79.	 	 
	 	4/11/05-4/30/05
	 	 	$	30,814.79	 	 
	 	5/11/05-5/31/05
	 	 	$	30,814.79	 	 
	 	6/11/05-6/30/05
	 	 	$	30,814.79	 	 
	 	7/11/05-7/31/05
	 	 	$	30,814.79	 	 
	 	8/11/05-8/31/05
	 	 	$	30,814.79	 	 
	 	9/1/05-9/30/05
	 	 	$	33,700.94	 	 
	 	10/1/05-10/31/05
	 	 	$	33,700.94	 	 
	 	11/1/05-10/30/05
	 	 	$	38,426.30	 	 
	 	11/1/06-10/31/07
	 	 	$	39,582.08	 	 
	 	11/1/07-10/31/08
	 	 	$	40,766.46	 	 
	 	11/1/08-10/31/09
	 	 	$	41,989.45	 	 
	 	11/1/09-10/31/10
	 	 	$	43,249.13	 	 
	 	11/1/10-10/31/11
	 	 	$	44,546.61.	 	 
	 	11/1/11-04/30/12
	 	 	$	45,883.01.	 	 
	 

       4.2 Added
    Rent. Together with each payment of Basic Rent, Subtenant shall pay for the
    term hereof, as additional rent hereunder, an amount equal to Subtenant’s
    Percentage of the Additional Rent payable by Sublandlord under the Master
    Lease during the term of the Sublease (the “Added Rent”) at the
    time such payments are due under the Master Lease,
  
     4.3 Apportionments. In the event that the Commencement Date occurs on a date other than the
first day of any calendar month, then Rent and other charges for any

 

 

partial month during the term of this Sublease shall be prorated based on the total
number of days in such month within the term of this Sublease.

     4.4 Additional Payments. To the extent that Sublandlord is (i) obligated to pay any
amounts under the Master Lease in addition to Base Rent and Additional Rent which are
reasonably incurred due to Subtenant’s use of the Premises, or (ii) directly charged by
Master Landlord for any cost or service which is reasonably incurred due to Subtenant’s use
of the Premises, then Sublandlord shall provide Subtenant with a written invoice from the
Master Landlord, detailing such amounts and/or such costs or services, as the case may be,
and Subtenant shall reimburse Sublandlord therefor.

     4.5 Security Deposit. Subtenant shall deposit, upon execution of this Sublease, the sum
of $75,000.00 and an additional $75,000.00 no later than ninety (90) days thereafter with
Sublandlord as a security deposit (the “Deposit”). $37,500.00 of the Deposit shall be
refunded to Subtenant, in the form of rent abatement, on the second anniversary of the
Commencement Date, provided Subtenant is not then in default of this Sublease beyond any
applicable cure period. An additional $37,500.00 of the Deposit will be refunded, in the
form of rent abatement, on the fourth anniversary of the Commencement Date, provided
Subtenant is not then in default of this Sublease beyond any applicable cure period. To the
extent the Deposit has not been either previously returned to Subtenant, or applied or
exhausted pursuant to the terms hereof, it shall be returned by Sublandlord to Subtenant
within thirty (30) days following the expiration or earlier termination of the term of this
Sublease. Sublandlord agrees to maintain the Deposit in a federally insured interest bearing
account of a nationally recognized banking institution. All interest earned on the Deposit
shall be added thereto and applied in accordance with the terms hereof.

     5. [INTENTIONALLY OMITTED]

     6. Use by Subtenant. The Premises shall be used for an agricultural and biotech research and
development facility and related management offices, and in any event in a manner consistent with
the provisions and requirements of the Master Lease. Subtenant shall use its reasonable efforts to
not cause or permit the Premises to be used in any way which constitutes a violation of the Master
Lease, any rules and regulations promulgated thereunder by Master Landlord relating to the
Project, or any law, ordinance, or governmental regulation or order applicable to the Premises, or
which unreasonably interferes with the rights of other users of the Buildings or which constitutes
a nuisance or waste. Subtenant and Sublandlord shall promptly take all actions necessary to comply
with all applicable statutes, ordinances, rules, regulations, orders and requirements regulating
the particular use by Subtenant of the Premises, including the Occupational Safety and Health Act.
As used in this Sublease, the term “Hazardous Material” shall be defined as set forth in Section
30 of the Master Lease.

     7. Incorporation of Master Lease.

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     7.1 A. Except as provided in Section 7.2, all of the terms, provisions, covenants
and conditions contained in the Master Lease are made a part of this Sublease and
incorporated in this Sublease by reference as if the Master Lease was at this point set
forth in full. When in the Master Lease as so incorporated any reference is made to
“Landlord” and to “Tenant,” it shall mean respectively, Sublandlord and Subtenant in this
Sublease; any reference to “the Lease” or “this Lease” or any similar expression in the
Master Lease shall mean the Sublease herein made; and any reference in the Master Lease
to “the premises” or “the demised premises” or any similar expression shall mean the
Premises demised in this Sublease. It is the intention of Sublandlord and Subtenant that
except as otherwise provided by the specific provisions set forth in this Sublease, the
relation between Sublandlord and Subtenant shall be governed by the language of the
Master Lease incorporated by reference.

     B. This Sublease, and the Subtenant’s rights under this Sublease, shall, at all
times, be subject and subordinate to all of the terms, covenants, and conditions of the
Master Lease, and to any renewal, amendment or modification thereof consented to by
Subtenant, with the same force and effect as if same were fully set forth herein at
length, and, except as otherwise provided for herein, the Subtenant shall faithfully
keep, observe, and perform or cause to be kept, observed and performed, all those terms,
covenants, and conditions of or pertaining to the Sublandlord under the Master Lease. To
the extent that any provision of the Master Lease incorporated herein by reference may
conflict with or be inconsistent with any provision of this Sublease not so incorporated
from the Master Lease, whether or not such inconsistency is expressly noted herein, the
provisions of this Sublease shall prevail.

     C. This Sublease is further subject and subordinate to the rights of the holder of
any Mortgage to which the Master Lease is subject or subordinate and to all renewals,
modifications, consolidations, correlations, replacements and extensions thereof.

     7.2 The Master Lease is incorporated hereby by this reference (subject  to
the limitations contained herein), except as follows:

     (i) The first 4 paragraphs of Section 2 (Delivery; Acceptance of
Premises; Commencement Date) are excluded; and

     (ii) Section 39 is excluded.

     7.3 During the term of this Sublease, and thereafter for obligations that arose prior
to the date (the “Cutoff Date”) which is the earlier to occur of (i) the Expiration Date,
or (ii) the date of the termination of this Sublease if prior to the Expiration Date,
Subtenant hereby expressly assumes and agrees to perform and comply with, for the benefit
of both Sublandlord and Master Landlord, every obligation of Sublandlord with respect to
the Premises under the incorporated provisions of the Master Lease with respect to period
after the Commencement Date but prior to the Cutoff Date, but only to the extent that
performance by Subtenant of Sublandlord’s

5

 

obligations is permitted by Master Landlord. Subtenant hereby agrees to defend,
indemnify and hold Sublandlord harmless from, all claims, demands, causes of action,
liabilities, losses, costs and expenses (including without limitation costs of suit and
reasonable attorneys’ fees) arising from or in connection with any obligation or liability
of Sublandlord that arises out of or relates to the Premises during such period,
including, without limitation, any failure by Subtenant to perform any obligation of
Subtenant under any provision of the Master Lease as provided in the preceding sentence.
Subtenant hereby agrees to defend, indemnify and hold Sublandlord harmless from all
claims, demands, causes of action, liabilities, losses, injuries, and reasonable costs and
expenses (including without limitation costs of suit and reasonable attorneys’ fees)
arising from or in connection with (a) any failure by Subtenant to perform any obligation
of Sublandlord under any incorporated provision of the Master Lease required on
Subtenant’s part to perform hereunder, and (b) any other act or omission of Subtenant
related to or in connection with Subtenants use of the Premises, including without
limitation, any injury to Subtenant’s employees, contractors, visitors or guests, unless
caused by Sublandlord’s, or Master Landlord’s, negligence or willful misconduct.

     7.4 All waivers of claims against and exculpations of “Landlord” under the Master Lease
shall run in favor of both Sublandlord and Master Landlord. All waivers of claims against and
exculpations of “Tenant” under the incorporated provisions of the Master Lease shall
constitute rights of Subtenant under this Sublease, except the extent modified by this
Sublease.

     7.5 All rights of “Landlord” under the incorporated provisions of the Master Lease
shall constitute rights of both Sublandlord and Master Landlord under this Sublease. All
rights of “Tenant” under the incorporated provisions of the Master Lease with respect to
the Premises shall constitute rights of Subtenant under this Sublease, except to the
extent modified by this Sublease. In addition to other duties in the Master Lease,
Subtenant shall immediately notify Sublandlord of any release of Hazardous Substances from
Subtenant’s processes on the Premises in violation of applicable law that poses or could
pose a threat to the health or safety of Sublandlord’s employees, contractors, visitors or
guests.

     7.6 All notices required to be given by Subtenant under the incorporated provisions of
the Master Lease shall be given to both Sublandlord and Master Landlord. All notices
required to be given by Master Landlord under the incorporated provisions of the Master
Lease shall be given (i) by Master Landlord to Subtenant simultaneously with the giving of
such notices by Master Landlord to Sublandlord, and (ii) by Sublandlord to Subtenant within
five (5) days of Sublandlord’s receipt thereof from Master Landlord, the intention of the
parties being that Subtenant not be prejudiced by any failure to receive any such notice in
a timely manner.

     7.7 All actions of Subtenant that require the consent of “Landlord” under the
incorporated provisions of the Master Lease shall require the consent of both Sublandlord
and Master Landlord. In the event that Subtenant desires to obtain Master

6

 

Landlord’s consent with respect to any matter relating to Subtenant’s occupancy of the
Premises, and in the event that Sublandlord’s consent with respect to such matter has been
obtained or is not required, Subtenant may require Sublandlord, at Sublandlord’s option,
either (a) to request Master Landlord’s consent, with respect to such matter, or (b) if
acceptable to Master Landlord, to permit Subtenant to deal directly with Master Landlord in
requesting such consent. Except for the foregoing obligation of Sublandlord, Sublandlord
shall have no liability to Subtenant for any refusal of Master Landlord to grant any such
consent.

     7.8 Except as otherwise set forth in this Sublease, Sublandlord shall not be required
to provide repairs, maintenance, parking, utilities and services, to carry insurance, to
indemnify or to hold harmless or to perform the other duties and obligations of Master
Landlord pursuant to the incorporated provisions of the Master Lease; rather, Sublandlord’s
sole obligations shall be to pass along to Subtenant the benefit of Master Landlord’s
performance of such duties and obligations to the extent that the same are made available to
Sublandlord by Master Landlord. Sublandlord does, however, agree to use all reasonable
efforts to assist Subtenant in obtaining same should Master Landlord fail to provide such
services in accordance with the Master Lease. Any Master Lease provisions with respect to
rent abatements (whether in connection with a destruction of the Premises or otherwise)
shall only entitle Subtenant to a Base Rent abatement hereunder for any portion of the
Premises, and during any period, for which Sublandlord actually receives a rent abatement
under the Master Lease.

     7.9 Sublandlord shall be required to provide repairs, maintenance, utilities and
services, and to perform the other duties and obligations of “Landlord” pursuant to the
incorporated provisions of the Master Lease, only in the manner and to the extent the same
are made available to Sublandlord by Master Landlord under the Master Lease. Any reasonable
additional charges resulting from Subtenant’s abnormal use of such services or otherwise
reasonably attributable to Subtenant’s use of the Premises and not the obligation of Master
Landlord pursuant to the Master Lease or of the Sublandlord pursuant to this Sublease shall,
notwithstanding any other provision of this Sublease, be promptly paid by Subtenant to
Sublandlord within thirty (30) days following Sublandlord’s written demand therefore
accompanied by a reasonably detailed statement itemizing such charges. Notwithstanding
anything else in this Agreement to the contrary, Sublandlord hereby agrees to and will assign
to Subtenant any and all warranties and guarantees known and in the possession of Sublandlord
either assigned to Sublandlord by Master Landlord, or from Sublandlord’s contractors,
subcontractors and suppliers, with respect to any materials and labor supplied to the
Premises for that portion, if any, of the term of this Sublease that such warranties and
guarantees are in effect.

     7.10 Notwithstanding the incorporated provisions of Sections 18 and 19 of the Master
Lease, Sublandlord shall have no obligation to restore or rebuild any portion of the
Building, or Premises after any destruction or taking by eminent domain.

7

 

     7.11 Notwithstanding any other provision of this Sublease to the contrary, if
Sublandlord fails to pay the rent, or any other sum, that may be reserved in the Master
Lease, or to perform any of the other covenants or obligations (if any) to be performed by
it pertaining to periods occurring during the term of this Sublease that have not been
assumed hereunder by the Subtenant, and if such default is not cured or the Sublandlord has
not commenced such a cure, as the case may be, within the time period specified in the
Master Lease for the curing of such default by the Sublandlord, if any such period is
provided in the Master Lease, the Subtenant may pay said rent, or other sum, directly to
the Master Landlord or perform the other covenants or obligations of the Sublandlord, its
successors or assigns, and the Subtenant shall receive credit from the Sublandlord
hereunder for such payment and/or the reasonable costs of such performance against the
Subtenant’s obligation to pay rent to the Sublandlord hereunder.

     8. Insurance. (a) During the term of this Sublease, Subtenant shall secure and maintain, at
its sole expense, commercial general liability insurance in an amount no less than $2,000,000
combined single limit, covering liabilities arising from Subtenant’s leasing of, and operations in,
the Premises, and all indemnity obligations of Subtenant under this Sublease. Subtenant shall
maintain in effect at all times product liability coverage in an amount no less than $2,000,000
combined single limit. Subtenant’s general liability insurance and product liability coverage shall
name as additional insured Sublandlord and all other persons reasonably designated by Sublandlord
from time to time, and shall contain cross-liability endorsements and shall cover liabilities based
on doctrines of strict liability. Policies for such insurance shall be in form and substance and
with an insurer reasonably acceptable to Sublandlord, shall require at least 30 days prior written
notice to Sublandlord for any termination or material alteration during the term of this Sublease.
Subtenant shall, upon Sublandlord’s request from time to time, provide Sublandlord with reasonable
evidence that such policies are in effect. Notwithstanding the foregoing, to the extent the
insurance requirements set forth in the Master Lease (as incorporated herein by reference) are
greater than the requirements set forth in this Article 8, the provisions of the Master Lease shall
prevail.

     (b) Sublandlord and Subtenant hereby mutually waive all claims for recovery from the other for
any loss or damage to any of Sublandlord’s property or Subtenant’s property insured under valid and
collectible insurance policies to the extent of any recovery for loss insured thereunder and, to
that end, the parties agree to a mutual subrogation clause to be inserted or endorsed on each
policy setting forth that the insurance shall not be invalidated in the event that the insured
should waive in writing prior to any loss, any or all right of recovery against the other party for
any insured loss.

     9. Condition of Property and Remediation. Subtenant acknowledges that Sublandlord
has been in possession of the Premises pursuant to the Master Lease prior to the date hereof and
through the date immediately preceding the Commencement Date. Subtenant acknowledges that
Sublandlord has made no representations or warranties relating to the condition of the Premises
other than those made in this Sublease. Any obligation relating to repair or maintenance of the
Premises following the Commencement Date under the terms of the Master Lease shall be
the obligation of Subtenant and Subtenant shall so maintain the Premises.

8

 

Subtenant covenants and agrees that at the end of the term or any prior termination,
Subtenant will surrender the Premises in the same condition as when taking possession of the
Premises, subject to normal wear and tear. Subtenant shall leave the Premises in “broom clean”
condition at the end of the term. If the Subtenant shall damage the Premises at any time during
the Term of the Sublease, or in the course of removing any of its personal property, fixtures, or
furniture, Subtenant shall remove Subtenant’s personal property located upon the Premises
(“Subtenant’s Personal Property”), from the Premises immediately upon the termination of this
Sublease. All of Subtenant’s Personal Property located upon the Premises for longer then ten (10)
business days following the termination of this Sublease, shall be deemed to be the property of
the Sublandlord and the Sublandlord shall be free to remove and dispose of the same as Sublandlord
shall deem fit. Any reasonable charges or costs associated with the removal of Subtenant’s
Personal Property shall be reimbursed to Sublandlord by Subtenant within ten (10) days following
written demand accompanied by a reasonably detailed statement itemizing such costs. Nothing stated
herein shall be deemed to modify, or otherwise waive, any of the holdover provisions of the Master
Lease which are incorporated herein by reference pursuant to Section 7.1 hereof. Notwithstanding
the foregoing, the parties agree that Subtenant shall have the full use of any and all furniture,
equipment and trade fixtures (respectively, the “Furniture” “Equipment” and “Trade Fixtures”) and
of Sublandlord located in the Premises as of the Commencement Date, and as scheduled on Exhibit D
attached hereto and made a part hereof, for the term of this Sublease, at no additional cost or
expense to Subtenant. Sublandlord further agrees (i) to sell such Furniture, Equipment and Trade
Fixtures to Subtenant for $1.00 at the end of the term, or such earlier date as the parties may
agree, and in such event to transfer ownership thereof to Subtenant pursuant to the form of Bill
of Sale attached hereto as Exhibit C.

     10. Broker. Subtenant and Sublandlord each represent and warrant to the other that neither
has had any dealings with any person, firm, broker or finder in connection with this Sublease,
other than Staubach Co: and MacKenzie Commercial Real Estate Services, LLC-, and each party agrees
to indemnify, defend and hold harmless the other party from and against any and all liability,
costs, expenses, including reasonable attorneys’ fees and costs, for compensation, commission or
charges which may be claimed by any unnamed broker, finder or other similar party by reason of any
dealings or actions of the indemnifying party.

9

 

     11. Representations and Warranties.

     11.1 Sublandlord hereby represents and warrants to Subtenant, as of the date on which
this Sublease is executed by Sublandlord, as follows:

     (i) A true and complete copy of the Master Lease, together with all
supplements, amendments and other modifications thereto, is attached hereto as
Exhibit “A”. The “Commencement Date” under the Master Lease was

     (ii) The Master Lease is in full force and effect, and the tenant’s
rights and interests under the Master Lease are free of all liens, charges and
encumbrances created by Sublandlord; and

     (iii) To Sublandlord’s best knowledge, after all due investigation, no uncured
defaults by the Sublandlord, as tenant under the Master Lease , or of Master
Landlord, presently exist under the Master Lease.

     11.2 Subtenant acknowledges that, except for the representations and warranties
expressly set forth in this Sublease, Sublandlord has made no representations or
warranties, express or implied, with respect to the Master Lease and the Premises.

     12. Defaults and Remedies.

     12.1 Defaults. Article 20 of the Master Lease is specifically incorporated into this
Sublease by reference except that where a default by Subtenant would result in a default
under the Master Lease as well as under this Subleaser.

     12.2 Remedies. In the event of any such default by Subtenant, Sublandlord shall
have, in addition to all other rights and remedies set forth in this Sublease or
available at law or in equity, the same rights and remedies against Subtenant as Master
Landlord has against Sublandlord as Tenant under the incorporated provisions of .the
Master Lease.

     12.3 Corporate Authority. Subtenant represents and warrants to Sublandlord that
Subtenant is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has requisite corporate power and authority to
enter into this Sublease and to carry out the terms hereof, and that Subtenant has
validly executed and delivered this Sublease. Subtenant further represents and warrants
to Sublandlord that this Sublease constitutes a legal, valid and binding contract of
Subtenant.

     13. Notices. All notices, demands, approvals and other communications provided for in this
Sublease shall be in writing and be sent by overnight courier service, return receipt requested,
postage prepaid, and addressed to the appropriate party as follows:

10

 

     If to Sublandlord:

Baxter Healthcare Corporation

ATTN: Corporate Real Estate One

Baxter Parkway

Deerfield, Illinois 60015

     with a copy to:

Baxter Healthcare Corporation ATTN:

Associate General Counsel One

Baxter Parkway

Deerfield, IL 60015

     If to Subtenant:

MetaMorphix, Inc.

ATTN: Thomas Russo

Executive Vice President and Chief Financial Officer

At the Premises

     with a copy to:

Shapiro Sher Guinot & Sandler ATTN:

William E. Carlson, Esquire 36 South

Charles Street, 20th Floor

Baltimore, Maryland 21201

Addresses for notice may be changed from time to time by written notice to all other parties. All
communications shall be effective when actually received; provided, however, that no receipt of any
communication as the result of a change of address of which the sending party was not notified or
as the result of a refusal to accept delivery shall be deemed receipt of such communication.

     14. Further Assurances. Each party hereto shall execute, acknowledge and deliver to each other
party all documents, and shall take all actions, reasonably required by such other party from time
to time to confirm or effect the matters set herein, or otherwise to carry out the purposes of this
Sublease.

     15. Attorney’s Fees. In the event that any litigation shall be commenced concerning this
Sublease by any party hereto, the party prevailing in such litigation shall be entitled to recover,
in addition to such other relief as may be granted, its reasonable costs and expenses,

11

 

including without limitation reasonable attorneys’ fees and court costs, whether or not
taxable, as awarded by a court of competent jurisdiction.

     16. No Third Parties Benefited. This Sublease is made for the purpose of setting forth certain
rights and obligations of Sublandlord and Subtenant, and no other person shall have any rights
hereunder or by reason hereof.

     17. Miscellaneous. This Sublease shall bind, and shall inure to the benefit of, the successors
and assigns of the parties. This document may be executed in counterparts with the same force and
effect as if the parties had executed one instrument, and each such counterpart shall constitute an
original hereof. No provision of this Sublease that is held to be inoperative, unenforceable or
invalid shall affect the remaining provisions, and to this end all provisions hereof are hereby
declared to be severable. This Sublease, contains all of the terns, covenants, conditions and
representations made or agreed to by Sublandlord and Subtenant and any and all such matters are
integrated herein. Time is of the essence of this Sublease. This Sublease shall be governed by the
laws of the State of Maryland.

     18. Successor and Assigns. This Sublease shall be binding upon the successors and assigns of
both parties.

12

 

     IN WITNESS WHEREOF, Sublandlord and Subtenant have executed this Sublease, intending the
same to be a document made under seal, as of the date first written above.

	 	 	 	 	 
	 	 	BAXTER HEALTHCARE CORPORATION
	 	 	“Sublandlord”
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	C — C . — METAMORPHIX, INC.
	 
	 	 	 	 
	 	 	“Subtenant”    /s/ Edwin Quattlebaum
	 
	 	 	 	 
	

	 	Name: Edwin C. Quattlebaum, Ph. D.

	

	 	Its:
 President and Chief Executive Officer

13

 

EXHIBIT A

MASTER LEASE AGREEMENT

14

 

EXHIBIT C

FLOOR PLAN

 

 

EXHIBIT C

BILL OF SALE

 

 

EXHIBIT D

SCHEDULE OF FURNITURE, EQUIPMENT, AND TRADE FIXTURES

 

 

Baxter Healthcare Facilities

8000 Virginia Manor Road

Beltsville, Maryland 20705

     This document is to serve as a general inventory of assets that are currently in the
premises and not an amendment to a legal document. Equipment and specifications contained in this
inventory list are subject to change without notice. Should an asset purchase/assignment/sublease
take place Baxter and prospective tenant will verify that the items represented above are accurate.

	   	I 8000 VIRGINIA MANOR ROAD SUITE 140

     A OFFICE SPACE

	 	1.  	One president’s office with private toilet and shower
	 
	 	2.  	Three Vice president offices (15’x15’) with glass wall
	 
	 	3.  	Nine Director offices (10’x15’) with glass wall
	 
	 	4.  	15 manager office (10’x12’) with side light
	 
	 	5.  	27 cubicles (8’x8’ x 42” high)
	 
	 	6.  	Three conference room
	 
	 	7.  	File room with rolling high-density file and Halon type fire suppression system.
	 
	 	8.  	Kitchen and LAN room
	 
	 	9.  	Furnishings included:

	 	a.  	One Director office with Herman Miller/ Giege,
Keyeira executive u in Amber Cherry

	 	1)  	Keyeira conference desk, (NDEKR-31722)
	 
	 	2)  	Keyeira stacking storage (NOU5-167839
	 
	 	3)  	Keyeira rear unit (NROBLC5A4-257829)
	 
	 	4)  	Keyeira bridge return top (NUOU-25421
	 
	 	5)  	Leather task chair and two guest chairs ( source unknown)

	 	b.  	15 Manager offices are Herman Miller Meridian
5000 Black and cherry including:

	 	1)  	D-shaped peninsula 72“x30” (5-7230-SD)
	 
	 	2)  	Bridge. Open42“x24” (5P0-4224-D)
	 
	 	3)  	Desk shell back 7s“x24” (5P0-7224-LL)
	 
	 	4)  	2 draw lateral std (26-3020-2N)
	 
	 	5)  	Desk mounted tack board 72“x24” (5-7224-DMT)
	 
	 	6)  	2 each Aeron side chairs, black (AE500P)

1

 

	 	7)  	Bookcase 55“x30“xl5” (46-3015-OB-55)

	 	c   	 Cubicles are Heiman Miller Etho-space

	 	1)  	Fabric tile faced panels
	 
	 	2)  	Painted tile faces under work surface
	 
	 	3)  	U shaped work surface
	 
	 	4)  	Herman Miller Caper stacking side chair, Black (WC420P)
	 
	 	5)  	Free standing ped file over file (160-1520-B)
	 
	 	6)  	Free standing ped box, box, file (160-1520-F

	 	d   	 Conference rooms include:

	 	1)  	Vertex 16” sight line table w/ bases
	 
	 	2)  	Matching Credenza 72” (VC-72-HD)
	 
	 	3)  	19 Aeron pneumatic lift chairs (AE112PWB
	 
	 	4)  	12” wood conference table (Source unknown)
	 
	 	5)  	1 rear projection screen in main conference room
	 
	 	6)  	2 electric roll down screens

	 	e   	 Miscellaneous

	 	1)  	Rolling High density filing system by White with 5 double sides
units 132” long and 76” high

	 	2)   	Herman Miller 4 high 42” wide white lateral files 9 each

B MECHANICAL & ELECTRIC

	 	1.  	Two each 25 ton Aaon roof top unit with gas fired heat
model45703-RK-25-2-EO-322-JKOSAAOOH0000X
	 
	 	2.  	14 Fan powered Variable Air Volume boxes with electric reheats j Siemens Building Automation System with graphic display and data collection.
	 
	 	4.  	Graphic Over-ride panel for extended occupied and weekend hours.
	 
	 	5.  	Two Humidifiers for comfort, controlled by BAS.
	 
	 	6.  	Recirculating hot water hearer.
	 
	 	7.  	Split unit cooling coils in LAN room.
	 
	 	8.  	800 Amp service at 208 volts

     a. Emergency lighting is battery back-up

C. OTHERS

	 	1.  	Separate Fire alarm system

     Card reader controlled access on exterior doors and bulk file room.

 

 

	3.  	Local cameras outside two doors.(no monitoring)
	 
	4.  	Computerized lighting in cubicle space. Each light is individually computer controlled with
separate up and down components.
	 
	5.  	Privet office lighting is motion controlled at each room.
	 
	6.  	4 data/phone ports per workstation labeled to central rack and wired with CAT 5+ cable.

 

 

LEASE AGREEMENT

     THIS
LEASE AGREEMENT is made this        day of                      , 2001, between ARE-8000/9000110000 VIRGINIA MANOR ROAD, LLC, a
Delaware Iimed liability company (“Landlord”), and BAXTER HEALTHCARE CORPORATION, a
Delaware corporation (“Tenant”).

	 	 	 
	Address:

	 	Suite 260, 9000 Virginia Manor Road, Beltsville, Maryland 20705
	 
	 	 
	Premises:

	 	That portion of the Project, consisting of Suite 260 (the “Suite 260
Premises”), Suite 206 (the “Suite 206 Premises”) and Suite 200 (the “Suite 200
Premises”), containing approximately 60,061 rentable square feet in the aggregate,
as determined by Landlord, as shown on Exhibit A.
	 
	 	 
	Building:

	 	The specific building in the Project in which the Premises are located, as
shown on Exhibit B.
	 
	 	 
	Project:

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

	 	Suite 260 Premises, $35,031 per month
	

	 	Suite 206 Premises, $19,780 per month
	

	 	Suite 200 Premises, $5,250 per month

	   	Rentable Area of Premises: Suite 260 Premises, 35,031 sq. ft. Suite 206 Premises, 19,780
sq. ft. Suite 200 Premises, 5,250 sq. ft.

Rentable Area of Project: 191,887 sq. ft.

	   	Tenant’s Share of Operating Expenses: 31.30% (approximately 18.26% as to the Suite 260 Premises,
10.31% as to the Suite 206 Premises, and 2.74% as to the Suite 200 Premises)

Security Deposit: None

	   	Target Commencement Date: Suite 260 Premises, March 1, 2001 Suite 206 Premises, December 1,
2000 Suite 200 Premises, May 31, 2001

Rent Commencement Date

	 	   	(subject to Section 3(a)): Suite 260 Premises, March 1, 2001
	 
	 	   	Suite 206
Premises, five months following the Suite 206
Commencement Date
	 
	 	   	Suite 200
Premises, five months following the Suite 200
Commencement Date

Rent Adjustment Percentage: 3.5%

	   	Base Term: As to each portion of the Premises, beginning on the Suite 260 Commencement
Date, the Suite 206 Commencement Date or the Suite 200 Commencement

 

 

	   	Date, respectively, and ending August 30, 2011.

 

 

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

	 	 	 
	Address for Rent Payment:

	 	Landlord’s Notice Address:
	135
N. Los Robles Avenue, Suite 250 Pasadena, CA 91101

	 	135 N. Los Robles Avenue, Suite 250 
Pasadena, CA 91101
	Attention: Accounts Receivable

	 	Attention: General Counsel
	 
	 	 

Tenant’s Notice Address:

Baxter Healthcare Corporation

10150 Old Columbia Road

Columbia, MD 21046

Attention: Ana Marie Meija

     Vice President of Finance

 

with a copy to:

Baxter Healthcare Corporation

One Baxter Parkway

Deerfield, IL 60015

Attention: Director of Corporate Real Estate

The following Exhibits and Addenda are attached hereto and incorporated herein by this reference:
[ X ] EXHIBIT A — PREMISES DESCRIPTION [ X ] EXHIBIT B — DESCRIPTION OF PROJECT. [ ]
EXHIBIT C — DELETED [ X ] EXHIBIT D — COMMENCEMENT DATE
[ X ] EXHIBIT E — RULES AND REGULATIONS [ X ] EXHIBIT F — TENANT’S PERSONAL PROPERTY [ X ]
EXHIBIT G — ESTOPPEL CERTIFICATE [ X ] EXHIBIT H — NONDISTURBANCE AGREEMENT

 

 

     1. Lease of Premises. Upon and subject to all of the terms and conditions hereof,
Landlord hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord.
The portions of the Project which are for the non-exclusive use of tenants of the Project are
collectively referred to herein as the “Common Areas.” Landlord reserves the right to modify
Common Areas, provided that such modifications do not materially adversely affect Tenant’s use of
the Premises for the Permitted Use.

     2. Delivery; Acceptance of Premises; Commencement Date. Tenant is currently in possession of
the Suite 260 Premises pursuant to an existing lease between Landlord and Tenant. Landlord shall
be deemed to have delivered the Suite 260 Premises to Tenant on March 1, 2001, immediately
following expiration of the existing lease term (the “Suite 260 Commencement Date”).

     Tenant is currently in possession of the Suite 206 Premises pursuant to an existing
monthto-month lease between Landlord and Tenant. Tenant shall be deemed to have delivered the
Suite 206 Premises to Tenant on March 1, 2001 (the “Suite 206 Commencement Date”), at which time
the existing month-to-month lease shall be deemed terminated.

     Landlord shall use reasonable efforts to make the Suite 200 Premises available to Tenant
within 5 days following the current tenant’s lease termination and vacation of the Premises and
Tenant’s delivery of evidence of the insurance required hereby. The “Suite 200 Commencement Date”
shall be the date five days following Delivery of the Suite 200 Premises.

     The date Landlord tenders possession of each portion of the Premises is referred to herein as
“Delivery” or “Deliver”. If Landlord fails to timely Deliver the Premises, or any portion thereof,
Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and this Lease
shall not be void or voidable except.as provided herein. If Landlord does not Deliver any portion
of the Premises within 60 days of the Target Commencement Date for any reason other than Force
Majeure (as defined in Section 34), this Lease may be terminated by Landlord or Tenant as
to the portion of the Premises not delivered by written notice to the other, and if so terminated
by either: (a) so long as Tenant is not in default hereunder, the Security Deposit shall be
returned to Tenant, and (b) neither Landlord nor Tenant shall have any further rights, duties or
obligations under this Lease, with respect to the applicable portion of the Premises, except with
respect to provisions which expressly survive termination of this Lease. If neither Landlord nor
Tenant elects to void this Lease within 5 business days of the lapse of such 60 day period, such
right to void this Lease shall be waived and this Lease shall remain in full force and effect as
to the relevant portion of the Premises.

     Upon request of Landlord, Tenant shall execute and deliver a written acknowledgment of the
Commencement Date for each portion of the Premises and the expiration date of the Term when such
are established in the form attached to this Lease as Exhibit D; provided, however,
Tenant’s failure to execute and deliver such acknowledgment shall not affect Landlord’s
rights hereunder. The “Term” of this Lease shall be the Base Term and any Extension Terms which
Tenant may elect pursuant to Section 40 hereof.

     Tenant hereby agrees as follows: (i) Tenant shall accept each portion of the Premises in
their condition as of the applicable Commencement Date, subject to all applicable Legal
Requirements (as defined in Section 7 hereof); (ii) Landlord shall have no obligation for
any defects in the Premises; and (iii) Tenant’s taking possession of the Premises shall be
conclusive evidence that Tenant accepts the Premises and that the Premises were in good condition
at the time possession was taken. Any occupancy of the Premises by Tenant before the applicable
Commencement Date shall be subject to all of the terms and conditions of this Lease.

 

 

     Tenant agrees and acknowledges that neither Landlord nor any agent of Landlord has made
any representation or warranty with respect to the condition of all or any portion of the
Premisesor the Project, and/or the suitability of the Premises or the Project for the conduct of
Tenant’s business, and Tenant waives any implied warranty that the Premises or the Project are
suitable for the Permitted Use. This Lease constitutes the complete agreement of Landlord and
Tenant with respect to the subject matter hereof and supersedesany and all prior representations,
inducements, promises, agreements, understandings and negotiations which are not contained herein.
Landlord in executing this Lease does so in reliance upon Tenant’s representations, warranties,
acknowledgments and agreements contained herein.

     3. Rent.

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

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

     4. Base Rent Adjustments. Base Rent shall be increased on each annual anniversary during the
Term of this Lease of the first day of the first full month following the Suite 260 Commencement
Date (or the Suite 260 Commencement Date, if the first day of the month) (each an “Adjustment
Date”) by multiplying the Base Rent payable immediately before such Adjustment Date by the Rent
Adjustment Percentage and adding the resulting amount to the Base Rent payable immediately before
such Adjustment Date. Base Rent, as so adjusted, shall thereafter be due as provided herein. Base
Rent adjustments for any fractional calendar month shall be prorated. Base Rent shall be increased
on each Adjustment Date whether or not the applicable Rent Commencement Date has occurred.

     5. Operating Expense Payments. Landlord shall deliver to Tenant a written estimate of
Operating Expenses for each calendar year during the Term (the “Annual Estimate”) as reasonably
determined by Landlord, which may be revised by Landlord from time to time during
such calendar year. During each month of the term on the same date that Base
Rent is due,
Tenant shall pay Landlord an amount equal to 1/12 of enant’s Share of the Annual Estimate.
Payments for any fractional calendar month shall be prorated.

     The term “Operating Expenses” means all costs and expenses of any kind or description
whatsoever incurred or accrued each calendar year by Landlord with respect to operation,
ownership, management, and maintenance of the Project (including, without duplication, Taxes (as
defined in Section 9), reasonable reserves consistent with good business practice for
future repairs

 

 

and replacements, capital repairs and improvements amortized over the lesser of (i) 7 years
(10 years for capital improvements or repairs to the roof of, and HVAC equipment serving,
buildings within the Project) or (ii) the useful life of such capital items, and the costs of
Landlord’s third party property manager or, if there is no third party property manager,
administration rent in the amount of 3.5% of Base Rent, excluding only:

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

     (b) capital expenditures for expansion of the Project;

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

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

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

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

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

     (h) costs of utilities outside normal business hours sold to tenants of the Project;

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

     (j) salaries, wages, benefits and other compensation paid to officers and employees of
Landlord except to the extent such person is assigned in whole or in part to the operation,
management, maintenance or repair of the Project;

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

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

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

     (n) tax penalties, fines or interest incurred as a result of Landlord’s negligence, inability
or unwillingness to make payment and/or to file any tax or informational returns when due, or from

 

 

Landlord’s failure to make any payment required to be made by Landlord hereunder before
delinquency;

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

     (p) costs arising from Landlord’s charitable or political contributions or fine art
maintained at the Project;

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

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

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

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

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

     The Annual Statement shall be final and binding upon Tenant unless Tenant, within 120
days after Tenant’s receipt thereof, shall contest any item therein by giving written notice to
Landlord, specifying each item contested and the reason therefor. If, during such 120 day period,
Tenant reasonably and in good faith questions or contests the correctness of Landlord’s statement
of Tenant’s Share of Operating Expenses, Landlord will provide Tenant with access to Landlord’s
books and records relating to the operation of the Project and such information as Landlord
reasonably determines to be responsive to Tenant’s questions (the “Expense Information”). If after
Tenant’s review of such Expense Information, Landlord and Tenant cannot agree upon the amount of
Tenant’s Share of Operating Expenses, then Tenant shall have the right to have an independent
public accounting firm selected by Tenant from among the 5 largest in the United States, working
pursuant to a fee arrangement other than a contingent fee (at Tenant’s sole cost and expense) and
approved by Landlord (which approval shall not be unreasonably withheld or delayed), audit and/or
review the Expense Information for the year in question (the “Independent Review”). The results of
any such Independent Review shall be binding on Landlord and Tenant. If the Independent Review
shows that the payments actually made by Tenant with respect to Operating Expenses for the
calendar year in question exceeded Tenant’s Share of Operating Expenses for such calendar year,
Landlord shall at Landlord’s option either (i) credit the excess

 

 

amount to the next succeeding installments of estimated Operating Expenses or (ii) pay the
excess to Tenant within 30 days after delivery of such statement, except that after the expiration
or earlier termination of the Term or if Tenant is delinquent in its obligation to pay Rent,
Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord. If the
Independent Review shows that Tenant’s payments with respect to Operating Expenses for such calendar year were less
than Tenant’s Share of Operating Expenses for the calendar year, Tenant shall pay the deficiency
to Landlord within 30 days after delivery of such statement. If the Independent Review shows that
Tenant has overpaid with respect to Operating Expenses by more than 5% them Landlord shall
reimburse Tenant for all costs incurred by Tenant for the Independent Review. Operating Expenses
for the calendar years in which Tenant’s obligation to share therein begins and ends shall be
prorated. Notwithstanding anything set forth herein to the contrary, if the Project is not at
least 95% occupied on average during any year of the Term, Tenant’s Share of Operating Expenses
for such year shall be computed as though the Project had been 95% occupied on average during
such year.

     “Tenant’s Share” shall be the percentage set forth on the first page of this
Lease as Tenant’s Share for each portion of the Premises, or the entire Premises, as the case may be, as reasonably adjusted by Landlord for changes in the physical size of the
Premises or the Project occurring thereafter. Landlord may equitably increase Tenant’s Share for
any item of expense or cost reimbursable by Tenant that relates to a repair, replacement, or
service that benefits only the Premises or only a portion of the Project that includes the
Premises or that varies with occupancy or use. Base Rent, Tenant’s Share of Operating Expenses
and all other amounts payable by Tenant to Landlord hereunder are collectively referred to herein
as “Rent.”

     6. Security Deposit. No security deposit is required of Tenant with respect to this
Lease.

     7. Use. The Premises shall be used solely for the Permitted Use set forth in the Basic Lease
Provisions, in compliance with all laws, orders, judgments, ordinances, regulations, codes,
directives, permits, licenses, covenants and restrictions, if any, now or hereafter generally
applicable to the Building and the use and occupancy thereof (collectively, “Legal
Requirements”). Tenant shall, upon 5 days’ written notice from Landlord, discontinue any use of
the Premises which is declared by any Governmental Authority (as defined in Section 9)
having jurisdiction to be a violation of any Legal Requirement. Tenant will not use or permit the
Premises to be used for any purpose or in any manner that would void Tenant’s or Landlord’s
insurance, increase the insurance risk, or cause the disallowance of any sprinkler or other
credits. Tenant shall reimburse Landlord promptly upon demand for any additional premium charged
for any such insurance policy by reason of Tenant’s failure to comply with the provisions of this
Section or otherwise caused by Tenant’s use and/or occupancy of the Premises. Tenant will use the
Premises in a careful, safe and proper manner and will not commit waste, overload the floor or
structure of the Premises, subject the Premises to use that would damage the Premises or obstruct
or interfere with the rights of Landlord or other tenants or occupants of the Project, including
conducting or giving notice of any auction, liquidation, or going out of business sale on the
Premises, or using or allowing the Premises to be used for any unlawful purpose. Tenant shall
cause any equipment or machinery to be installed in the Premises so as to reasonably prevent
sounds or vibrations from the Premises from extending into Common Areas, or other space in the
Project. Tenant shall not place any machinery or equipment weighing 500 pounds or more in or upon
the Premises or transport or move such items through the Common Areas of the Project or in the
Project elevators without the prior written consent of Landlord. Tenant shall not, without the
prior written consent of Landlord, use the Premises in any manner which will require ventilation,
air exchange, heating, gas, steam, electricity or water beyond the existing capacity of the
Project as proportionately allocated to the Premises based upon Tenant’s Share as usually
furnished for the Permitted Use.

 

 

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

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

     10. Parking. Tenant shall have the right to park in common with other tenants of the
Project pro rata in accordance with the rentable area of the Premises or portions thereof for
which . the Rent Commencement Date has occurred and the rentable areas of the Project occupied
by Zt such other tenants in those areas designated for non-reserved parking, subject in each
case to Landlord’s rules and regulations. Landlord may allocate parking spaces among Tenant and
other tenants in the Project pro rata as described above if Landlord determines that such
parking facilities

 

 

are becoming crowded. Landlord shall not be responsible for enforcing Tenant’s
parking rights against any third parties, including other tenants of the Project.

     11. Utilities, Services.

          Following the applicable Rent Commencement Date, Landlord shall provide, subject to
the terms of this Section 1 1, water, electricity, telephone, sewer, and other
utilities, fire sprinklers for the Common Areas, and refuse and trash collection (collectively, “Utilities”).
Landlord shall pay, as Operating Expenses or subject to Tenant’s reimbursement obligation,
for all Utilities used on the Premises, all maintenance charges for Utilities, and any
storm sewer charges or other similar charges for Utilities imposed by any Governmental
Authority or Utility provider, and any taxes, penalties, surcharges or similar charges
thereon. Landlord may cause, at Tenant’s expense, any Utilities to be separately metered
or charged directly to Tenant by the provider. Tenant shall pay directly to the Utility
provider, prior to delinquency, any separately metered Utilities and services which may be
furnished to Tenant or the Premises during the Term. Tenant shall pay, as part of
Operating Expenses, its share of all charges for jointly metered Utilities based upon
consumption, as reasonably determined by Landlord. No interruption or failure of
Utilities, from any cause whatsoever other than Landlord’s willful misconduct, shall result in eviction or constructive eviction
of Tenant, termination of this Lease or the abatement of Rent. Tenant agrees to
limit use of water and sewer with respect to Common Areas to normal
restroom use.

     12. Alterations and Tenant’s Property. Any alterations, additions, or improvements
made to the Premises by or on behalf of Tenant, including additional locks or bolts of any
kind or nature upon any doors or windows in the Premises, but excluding installation,
removal or realignment of furniture systems (other than removal of furniture systems owned
or paid for by Landlord) and not involving any modifications to the structure or
connections (other then by ordinary plugs or jacks) to Building Systems (as defined in
Section 13) (“Alterations”) shall be subject to Landlord’s prior written consent,
which may be given or withheld in Landlord’s sole discretion if any such Alteration
affects the structure or Building Systems. Tenant may construct nonstructural Alterations
in the Premises without Landlord’s prior approval if the aggregate cost of all such work
in any 12 month period does not exceed $100,000 (a “Notice-Only Alteration”), provided
Tenant notifies Landlord in writing of such intended Notice-Only Alteration, and such
notice shall be accompanied by plans, specifications, work contracts and such other
information concerning the nature and cost of the Notice-Only Alteration as may be
reasonably requested by Landlord, which notice and accompanying materials shall be
delivered to Landlord not less than 15 days in advance of any proposed construction. If
Landlord approves any Alterations, Landlord may impose such conditions on Tenant in
connection with the commencement, performance and completion of such Alterations as
Landlord may deem appropriate in Landlord’s reasonable discretion. Any request for
approval shall be in writing, delivered not less than 15 business days in advance of any
proposed construction, and accompanied by plans, specifications, bid proposals, work
contracts and such other information concerning the nature and cost of the alterations as
may be reasonably requested by Landlord, including the identities and mailing addresses of
all persons performing work or supplying materials. Landlord’s right to review plans and
specifications and to monitor construction shall be solely for its own benefit, and
Landlord shall have no duty to ensure that such plans and specifications or construction
comply with applicable Legal Requirements. Tenant shall cause, at its sole cost and
expense, all Alterations to comply with insurance requirements and with Legal Requirements
and shall implement at its sole cost and expense any alteration or modification required
by Legal Requirements as a result of any Alterations. Tenant shall pay to Landlord, as
Additional Rent, on demand an amount not to exceed 5% of all charges incurred by Tenant or
its contractors or agents in connection with any Alteration to cover Landlord’s actual
overhead and expenses for plan review, coordination, scheduling and supervision. Before
Tenant begins any Alteration, Landlord may post on and about the Premises notices of
non-responsibility pursuant to applicable law. Tenant shall reimburse Landlord for, and
indemnify and hold Landlord harmless

 

 

from, any expense incurred by Landlord by reason of faulty work done by Tenant or its
contractors, delays caused by such work, or inadequate cleanup.

          Other than (i) the items, if any, listed on Exhibit F attached hereto, (ii) any items agreed
by Landlord in writing to be included on Exhibit F in the future, and (iii) any trade fixtures,
machinery, equipment and other personal property which may be removed without material damage to
the Premises, which damage shall be repaired (including capping or terminating utility hook-ups
behind walls) by Tenant during the Term (collectively, “Tenant’s Property”), all property of any
kind paid for with the TI Fund, all Alterations, real property fixtures, built-in machinery and
equipment, built-in casework and cabinets and other similar additions and improvements built into
the Premises so as to become an integral part of the Premises such as fume hoods which penetrate
the roof or plenum area, built-in cold rooms, built-in warm rooms, walk-in cold rooms, walk-in
warm‘ rooms, deionized water systems, glass washing equipment, autoclaves, chillers,
built-in plumbing, electrical and mechanical equipment and systems, and any power generator and
transfer switch (collectively, “Installations”) shall be and shall remain the property of Landlord
during the Term and following the expiration or earlier termination of the Term, shall not be
removed by Tenant at any time during the Term and shall remain upon and be surrendered with the
Premises as a part thereof in accordance with Section 28 following the expiration or
earlier termination of this Lease; provided, however, that Landlord shall, at the time its approval of such Installation is
requested notify Tenant if it has elected to cause Tenant to remove such Installation upon the
expiration or earlier termination of this Lease. If Landlord so elects, Tenant shall remove such
Installation upon the expiration or earlier termination of this Lease and restore any damage
caused by or occasioned as a result of such removal, including, when removing any of Tenant’s
Property which was plumbed, wired or otherwise connected to any of the Building Systems, capping
off all such connections behind the walls of the Premises and repairing any holes. During any such
restoration period, Tenant shall pay Rent to Landlord as provided herein as if said space were
otherwise occupied by Tenant.

     13. Landlord’s Repairs. Landlord, as an Operating Expense, shall maintain all of the
structural, exterior, parking and other Common Areas of the Project, including fire sprinklers, and
all other building systems serving the Common Areas of the Project (“Building Systems”) and the
roof of the buildings within the Project, in good repair, reasonable wear and tear and uninsured
losses and damages caused by Tenant, or by any of Tenant’s agents, servants, employees, invitees
and contractors (collectively, “Tenant Parties”) excluded. Losses and damages caused by Tenant or
any Tenant Party shall be repaired by Landlord, to the extent not covered by insurance, at Tenant’s
sole cost and expense. Landlord reserves the right to stop Building System services when necessary
(i) by reason of accident or emergency, or (ii) for planned repairs, alterations or improvements,
which are, in the judgment of Landlord, desirable or necessary to be made, until said repairs,
alterations or improvements shall have been completed. Landlord shall have no responsibility or
liability for failure to supply Building System services during any such period of interruption;
provided, however, that Landlord shall give Tenant 24 hours advance notice of any planned
stoppage of Building System services for routine maintenance, repairs, alterations or improvements.
Tenant shall promptly give Landlord written notice of any repair required by Landlord pursuant to
this Section, afterwhich Landlord shall have a reasonable opportunity to effect such repair.
Landlord shall not be liable for any failure to make any repairs or to perform any maintenance
unless such failure shall persist for an unreasonable time after Tenant’s written notice of the
need for such repairs or maintenance. If Landlord performs repairs within the Premises, Landlord
agrees to use commercially reasonable efforts to perform those repairs in a manner which does not
unreasonably interfere with Tenant’s use of the Premises. Tenant waives its rights under any state
or local law to terminate this Lease or to make such repairs at Landlord’s expense and agrees that
the parties’ respective rights with respect to such matters shall be solely as set forth
herein. Repairs required as the result of fire, earthquake, flood, vandalism, war, or similar cause
of damage or destruction shall be controlled by Section 18.

 

 

     14. Tenant’s Repairs. Subject to Section 13 hereof, Tenant, at its expense, shall
repair, replace and maintain in good condition all portions of the Premises, including, without
limitation, entries, doors, ceilings, interior windows, interior walls, and the interior side of
demising walls, fire sprinkler systems located within the Premises, and all heating, ventilating
and air conditioning systems(“HVAC”) serving the Premises, whether located within or outside the
Premises. Such repair and replacements may include capital expenditures and repairs whose benefit
may extend beyond the Term; such expenditures shall be including in Operating Expenses and subject
to amortization in the manner provided in Section 5 hereof. Should Tenant fail to make any
such repair or replacement or fail to maintain the Premises, Landlord shall give Tenant notice of
such failure. If Tenant fails to commence cure of such default within 10 days of Landlord’s
notice, and thereafter diligently prosecute such cure to completion, Landlord may perform such
work and shall be reimbursed by Tenant within 10 days after demand therefor; provided, however,
that if such default by Tenant creates or could create an emergency, Landlord may immediately
commence cure of such default and shall thereafter be entitled to recover the costs of such cure
from Tenant. Subject to Sections 17 and 18, Tenant shall bear the full uninsured cost of
any repair or replacement to any part of the Project that results from damage caused by Tenant or
any Tenant Party, and any repair that benefits only the Premises.

     15. Mechanic’s Liens. Tenant shall discharge, by bond or otherwise, any mechanic’s lien filed
against the Premises or against the Project for work claimed to have been done for, or materials
claimed to have been furnished to, Tenant within 20 days after the filing thereof, at Tenant’s
sole cost and shall otherwise keep the Premises and the Project free from any liens arising out of
work performed, materials furnished or obligations incurred by Tenant. Should Tenant fail to
discharge any lien described herein, Landlord shall have the right, but not the obligation, to pay
such claim or post a bond or otherwise provide security to eliminate the lien as a claim against
title to the Project and the cost thereof shall be immediately due from Tenant as Additional Rent.
If Tenant shall lease or finance the acquisition of office equipment, furnishings, or other
personal property of a removable nature utilized by Tenant in the operation of Tenant’s business,
Tenant warrants that any Uniform Commercial. Code Financing Statement executed by Tenant will upon
its face or by exhibit thereto indicate that such Financing Statement is applicable only to
removable personal property of Tenant located within the Premises. In no event shall the address
of the Project be furnished on the statement without qualifying language as to applicability of
the lien only to removable personal property, located in an identified suite held by Tenant:

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

     17. Insurance. Landlord shall maintain all insurance against any peril generally included
within the classification “Fire and Extended Coverage,” sprinkler damage (if applicable), vandalism
and malicious mischief covering the full replacement cost of the Project or such lesser coverage
amount as Landlord may elect provided such coverage amount is not less than 90% of such
full replacement cost. Landlord shall further carry commercial general liability insurance with a
single loss limit of not less than $2,000,000 per occurrence and in the aggregate for death or
bodily injury, or property damage with respect to the Project. Landlord may, but is not obligated
to, maintain such other insurance and additional coverages as it may deem necessary. including, but

 

 

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

     Tenant, at its sole cost and expense, shall maintain during the Term: all risk property
insurance covering the full replacement cost of all
property and improvements installed or placed
in the Premises by Tenant at Tenant’s expense; workers’ compensation insurance with no less
than the minimum limits required by law; employer’s liability insurance with such limits as
required by law; and commercial general liability insurance, with a minimum limit of not less than
$2,000,000 /per occurrence and in the aggregate for death
or bodily injury and not
less than $1,000,000 for property damage with respect to the Premises. The commercial general liability insurance policies shall name Landlord, its
officers,.directors, employees, managers, agents, invitees and
contractors (collectively, “Landlord
Parties”), as loss payee under property insurance policies and as additional insured under
liability insurance policies; insure on an occurrence and not a claims-made basis; be issued by
insurance companies which have a rating of not less than policyholder rating of A and financial
category rating of at least Class XII in “Best’s Insurance Guide”; shall not be cancelled unless 30
days prior written notice shall have been given to Landlord from the insurer; contain a hostile
fire endorsement and a contractual liability endorseme.nt; and provide primary coverage to Landlord
(any policy issued to Landlord providing duplicate or similar coverage shall be deemed excess over
Tenant’s policies). Such policies or certificates thereof shall be delivered to Landlord by Tenant
upon commencement of the Term and upon each renewal of said insurance. Tenant’s policy may be a
“blanket policy” which specifically provides that the amount of insurance shall not be prejudiced
by other losses covered by the policy. Tenant shall, at least 20 days prior to the expiration of
such policies, furnish Landlord with renewals or binders. Tenant agrees that if Tenant does not
take out and maintain such insurance, Landlord may (but shall not be required to) procure said
insurance on Tenant’s behalf and at its cost to be paid as Additional Rent.

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

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

 

 

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

     Landlord may require insurance policy limits to be raised to conform with requirements of
Landlord’s lender and/or to bring coverage limits to levels then being generally required of new
tenants within the Project.

     Notwithstanding the foregoing, so long as Tenant maintains a net worth, determined in
accordance with generally accepted accounting principles consistently applied, of $3,000,000,000
or more, should Tenant at any time fail to maintain any of the insurance coverages required to be
maintained under one or more policies of insurance written with a third party insurance company as
described under this Section 17, or should Tenant otherwise fail to comply with the
requirements of this Section 17 (“Lapsed Insurance Coverage”), such failure shall not be
Default under this Lease but shall instead shall be deemed for all purposes of this Lease to be an
election by Tenant until such condition is remedied to self-insure the risks that would have been
insured against by such Lapse Insurance Coverage(s) had such Lapsed Insurance Coverages been
provided by a third party insurance company as otherwise required by this Section for the full
duration of the period that such risks are not fully covered. Tenant shall be solely responsible
for paying any losses, liabilities, claims, damages and other costs and expenses that should have
been paid by such Lapsed Insurance Coverage pursuant to the terms of this Lease during any period
that the coverage(s) intended to be afforded by such Lapsed Insurance Coverage is not provide by
policies issued by a third party insurance company as described above. Tenant agrees upon written
request of Landlord to provide audited financial statements for the preceding fiscal year
evidencing the financial net worth of Tenant as of the last day of such fiscal year.

     18. Restoration. If at any time during the Term the Project or the Premises are damaged or
destroyed by a fire or other insured casualty, Landlord shall notify Tenant within 60
days after discovery of such damage as to the amount of
time
Landlord reasonably estimates it will take to restore the Project or the Premises,
as applicable (the “Restoration Period”). If the Restoration Period is estimated to exceed 9
months (the “Maximum Restoration Period”), Landlord may, in such notice, elect to terminate this
Lease as of the date that is 75 days after the date of discovery of such damage or destruction;
provided, however, that notwithstanding Landlord’s election to restore, Tenant may
elect to terminate this Lease by written notice to Landlord delivered within 5 business days of
receipt of a notice from Landlord estimating a Restoration Period for the Premises longer than the
Maximum Restoration Period. Unless either Landlord or Tenant so elects to terminate this Lease,
Landlord shall, subject to receipt of sufficient insurance proceeds (with any deductible to be
treated as a current Operating Expense), promptly restore the Premises (excluding the improvements
installed by Tenant or by Landlord and paid for by Tenant), subject to delays arising from the
collection of insurance proceeds, from Force Majeure events or as needed to obtain any license,
clearance or other authorization of any kind required to enter into and restore the Premises
issued by any Governmental Authority having jurisdiction over the use, storage, handling,
treatment, generation, release, disposal, removal or remediation of
Hazardous Materials (as defined. in Section 30) in, on or about the Premises (collectively referred
to herein as “Hazardous Materials Clearances”); provided, however, that if repair or restoration
of the Premises is not substantially complete as of the end of the Maximum Restoration Period or,
if longer, the Restoration Period, Landlord may, in its sole and absolute discretion, elect not to
proceed with such repair and restoration, or Tenant may by written notice to Landlord delivered
within 5 business days of the expiration of the Maximum Restoration Period or, if longer, the
Restoration Period, elect to terminate this Lease, in which event Landlord shall be relieved of
its obligation to make such repairs or restoration and this Lease shall terminate as of the date
that is 75 days after the later of: (i) discovery of such damage or destruction, or (ii) the date
all required Hazardous Materials Clearances are obtained.

     Tenant, at its expense. shall promptly perform, subject to delays arising from the
collection

 

 

of insurance proceeds, from Force Majeure (as defined in Section 34) events or to
obtain Hazardous Material Clearances, all repairs or restoration not required to be done by
Landlord and shall promptly re-enter the Premises and commence doing business in accordance with
this Lease. Notwithstanding the foregoing, Landlord may terminate this Lease if the Premises are
damaged during the last 1 year of the Term and Landlord reasonably estimates that it will take more
than 2 months to repair such damage, or if insurance proceeds are not available for such
restoration. Rent shall be abated from the date all required Hazardous Material Clearances are
obtained until the Premises are repaired and restored, in the proportion which the area of the
Premises, if any, which is not usable by Tenant bears to the total area of the Premises, unless
Landlord provides Tenant with other space during the period of repair that is suitable for the
temporary conduct of Tenant’s business. Such abatement shall be the sole remedy of Tenant, and
except as provided herein, Tenant waive right to terminate the Lease by reason of damage or
casualty loss.

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

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

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

     (a) Payment
Defaults. Tenant shall fail to pay any installment of Rent or any other
payment hereunder when due.

     (b) Insurance. Any insurance required to be maintained by Tenant pursuant to this
Lease shall be canceled or terminated or shall expire or shall be reduced or materially
changed, or Landlord shall receive a notice of nonrenewal of any such insurance and Tenant
shall fail to obtain replacement insurance at least 20 days before the expiration of the
current coverage; provided that Tenant shall not be in default if Tenant is
maintaining a self-insurance program in

 

 

accordance with the requirements of Section 17.

     (c) [Intentionally Deleted].

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

     (e) Liens. Tenant shall fail to discharge or otherwise obtain the release of any lien placed
upon the Premises in violation of this Lease within 20 days after any such lien is filed against
the Premises.

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

     (g) Estoppel Certificate or Subordination Agreement. Tenant fails to execute any
document required from Tenant under Sections 23 or 27 within 10 days after a second
notice requesting such document.

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

Any notice given under Section 20(h) hereof shall: (i) specify the alleged default, (ii)
demand that
Tenant cure such default, (iii) be in lieu of, and not in addition to, or shall be deemed to be,
any notice required under any provision of applicable law, and (iv) not be deemed a forfeiture or
a
termination of this Lease unless Landlord elects otherwise in such notice; provided that
if the nature
of Tenant’s default pursuant to Section 20(h) is such that it cannot be cured by the
payment of money and reasonably requires more than 20 days to cure, then Tenant shall not be
deemed to be in default if Tenant commences such cure within said 20 day period and thereafter
diligently prosecutes the same to completion; provided, however, that such cure shall be completed no later
than 60 days from the date of Landlord’s notice.

     21 Landlord’s Remedies.

          (a) Payment By Landlord; Interest. Upon a Default by Tenant hereunder, Landlord may, without
waiving or releasing any obligation of Tenant hereunder, make such payment or perform such act. All
sums so paid or incurred by Landlord, together with interest thereon, from the date such sums were
paid or incurred, at the annual rate equal to the “prime rate” as quoted in the
section entitled “Money Rates” or elsewhere in The Wall Street Journal from time to
time plus 5% per annum or the highest rate permitted by law (the “Default Rate”), whichever is
less, shall be payable to Landlord on demand as Additional Rent. Nothing herein shall be construed
to create or impose a duty on Landlord to mitigate any damages resulting from Tenant’s Default
hereunder.

 

 

     (b) Late Payment Rent. Late payment by Tenant to Landlord of Rent and other sums due will
cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be
extremely difficult and impracticable to ascertain. Such costs include, but are not limited to,
processing and accounting charges and late charges which may be imposed on Landlord under any
Mortgage covering the Premises. Therefore, if any installment of Rent due from Tenant is not
received by Landlord within 5 days after the date such payment is due, Tenant shall pay to Landlord
an additional sum equal to 6% of the overdue Rent as a late charge. The parties agree that this
late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of
late payment by Tenant. In addition to the late charge, Rent not paid when due shall bear interest
at the Default Rate from the 5th day after the date due until paid. Notwithstanding the foregoing,
no late charges or interest at the Default Rate shall be charged the first time in any 12 month
period in which Tenant’s payment of Rent is delinquent, so long as such payment is made within 10
days after the date such payment was due.

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

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

     (ii) Upon-any termination of this Lease, whether pursuant to the foregoing
Sectionm 2-1(c)(i) or otherwise, Landlord may recover from Tenant
the following.

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

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

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

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

     (E) At Landlord’s election, such other amounts in addition to or in lieu
of the foregoing as may be permitted from time to time by applicable law.

The term “rent” as used in this Section 21 shall be deemed to be and to mean
all sums of every nature required to be paid by Tenant pursuant to the terms of this
Lease, whether to

 

 

Landlord or to others. As used in Sections 21(c)(ii) (A) and (B),
above, the “worth at the time of award” shall be computed by allowing interest at the Default Rate. As used
in Section 21(c)(ii)(C) above, the “worth at the time of award” shall be
computed by discounting such amount at the discount rate of the Federal Reserve Bank
of San Francisco at the time of award plus 1%.

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

     (iv) Whether or not Landlord elects to terminate this Lease following a Default k) by
Tenant, Landlord shall have the right to terminate any and all subleases, licenses,
concessions or other consensual arrangements for possession entered into by Tenant and
affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest
in such subleases, licenses, concessions or arrangements. Upon Landlord’s
election to succeed to Tenant’s interest in any such subleases, licenses,
concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such
election, have no further right to or interest in the rent or other consideration receivable
thereunder.

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

     (d) Effect of Exercise. Exercise by Landlord of any remedies hereunder or otherwise
available shall not be deemed to be an acceptance of surrender of the Premises and/or a
termination of this Lease by Landlord, it being understood that such surrender and/or
termination can be effected only by the express written agreement of Landlord and Tenant.
Any law, usage, or custom to the contrary notwithstanding, Landlord shall have the right
at all times to enforce the provisions of this Lease in strict accordance with the terms
hereof; and the failure of Landlord at any time to enforce its rights under this Lease
strictly in accordance with same shall not be construed as having created a custom in any
way or manner contrary to the specific terms, provisions, and covenants of this Lease or
as having modified the same and shall not be deemed a waiver of Landlord’s right to
enforce one or more of its rights in connection with any subsequent default. A receipt by
Landlord of Rent or other payment with knowledge of the breach of any covenant hereof
shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of
this Lease shall be deemed to have been made unless expressed in writing and signed by
Landlord. To the greatest extent permitted by law, Tenant waives the service of notice of
Landlord’s intention to re-enter, re-take or otherwise obtain possession of the Premises
as provided in any statute, or to institute legal proceedings to that end, and also waives
all right of redemption in case Tenant shall be dispossessed by a judgment or by warrant
of any court or judge. Any reletting of the Premises or any portion thereof shall be on
such terms and conditions as Landlord in its sole discretion may determine. Landlord shall
not be liable for, nor shall Tenant’s obligations hereunder be diminished because of,
Landlord’s failure to relet the Premises or collect rent due in respect of such reletting
or otherwise to mitigate any damages arising by reason of Tenant’s Default.

     22. Assignment and Subletting.

     (a) General Prohibition. Without Landlord’s prior written consent subject to and on
the conditions described in this Section 22,Tenant shall not, directly or
indirectly, voluntarily or by operation of law, assign this Lease or sublease the Premises
or any part thereof or mortgage,

 

 

pledge, or hypothecate its leasehold interest or grant any concession or license within
the Premises, and any attempt to do any of the foregoing shall be void and of no effect. If
Tenant is a corporation, partnership or limited liability company, the shares or other
ownership interests thereof which are not actively traded upon a stock exchange or in the
over-the-counter market, a transfer or series of transfers whereby 25% or more of the issued
and outstanding shares or other ownership interests of such corporation are, or voting
control is, transferred (but excepting transfers upon deaths of individual owners) from a
person or persons or entity or entities which were owners thereof at time of execution of
this Lease to persons or entities who were not owners of shares or other ownership interests
of the corporation, partnership or limited liability company at time of execution of this
Lease, shall be deemed an assignment of this Lease requiring the consent of Landlord as
provided in this Section 22.

     (b) Permitted Transfers. If Tenant desires to assign, sublease, hypothecate or otherwise
transfer this Lease or sublet the Premises other than pursuant to a Permitted Assignment (as
defined below), then at least 15 business days, but not more than 45 business days, before the
date Tenant desires the assignment or sublease to be effective (the “Assignment Date”), Tenant
shall give Landlord a notice (the “Assignment Notice”) containing such information about the
proposed assignee or sublessee, including the proposed use of the Premises and any Hazardous
Materials proposed to be used, stored handled, treated,
generated in or released or disposed of from the Premises, the Assignment Date, any relationship between Tenant and the proposed assignee or sublessee, and all
material terms and conditions of the proposed assignment or sublease, including a copy of any
proposed assignment or sublease in its final form, and such other information as Landlord may
deem reasonably necessary or appropriate to its consideration whether to grant its consent.
Landlord may, by giving written notice to Tenant within 15 business days after receipt of the
Assignment Notice: (i) grant or refuse such consent, in its sole discretion with respect to a
proposed assignment, hypothecation or other transfer or subletting Of more than (together with
all other then effective subleases) 50% of the Premises, or grant or refuse such consent,,in its
reasonable discretion with respect to a proposed subletting of up to (together with all other
then effective subleases) 50% of the Premises (provided that Landlord shall further
have the right to review and approve or disapprove, in its reasonable discretion, the proposed
form of sublease prior to the effective date of any such subletting), or (ii) terminate this
Lease with respect to the space described in the Assignment Notice as of the Assignment Date (an
“Assignment Termination”). If Landlord elects an Assignment Termination, Tenant shall have the
right to withdraw such Assignment Notice by written notice to Landlord of such election within 5
days after Landlord’s notice electing to exercise the Assignment Termination. If Tenant
withdraws such Assignment Notice, this Lease shall continue in full force and effect. If Tenant
does not withdraw such Assignment Notice, this Lease, and the term and estate herein granted,
shall terminate as of the Assignment Date with respect to the space described in such Assignment
Notice. No failure of Landlord to exercise any such option to terminate this Lease shall be
deemed to be Landlord’s consent to the proposed assignment, sublease or other transfer. Tenant
shall reimburse Landlord for all of Landlord’s reasonable out-of-pocket expenses in connection
with its consideration of any Assignment Notice.

Notwithstanding the foregoing, Landlord’s consent to an assignment of this Lease or a subletting
of any portion of the Premises to an entity controlling, controlled by or under common
control with Tenant (a “Permitted Assignment”) shall not be required, provided that Landlord shall have
the right to approve or disapprove, in its reasonable discretion, the form of any such sublease
or assignment.

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

     (i) that any assignee or subtenant agree, in writing at the time of such
assignment or subletting, that if Landlord gives such party notice that Tenant
is in default

 

 

under this Lease, such party shall thereafter make all payments otherwise due Tenant
directly to Landlord, which payments will be received by Landlord without any liability
except to credit such payment against those due under the Lease, and any such third party
shall agree to attorn to Landlord or its successors and assigns should this Lease be
terminated for any reason; provided, however, in no event shall Landlord or its
successors or assigns be obligated to accept such attornment from such third party; and

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

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

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

     (f) Prior Conduct of Proposed Transferee. Notwithstanding any other provision of this
Section 22, if (i) the proposed assignee or sublessee of Tenant has been required by any
prior landlord, lender or Governmental Authority to take remedial action in connection with
Hazardous Materials contaminating a property, where the contamination resulted from such party’s
action or

 

 

use of the property in question, (ii) the proposed assignee or sublessee is subject to an
enforcement order issued by any Governmental Authority in connection with the use, storage,
handling, treatment, generation, release or disposal of Hazardous Materials (including, without
limitation, any order related to the failure to make a required reporting to any Governmental
Authority), or (iii) because of the existence of a pre-existing environmental condition in the
vicinity of or underlying the Project, the risk that Landlord would be targeted as a responsible
party in connection with the remediation of such pre-existing environmental condition would be
materially increased or exacerbated by the proposed use of Hazardous Materials by such proposed
assignee or sublessee, Landlord shall have the absolute right to refuse to consent to any
assignment or subletting to any such party.

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

     24. Quiet Enjoyment. So long as Tenant shall perform all of the covenants and agreements
herein required to be performed by Tenant, Tenant shall, subject to the terms of this Lease, at
all times during the Term, have peaceful and quiet enjoyment of the Premises against any person
claiming by, through or under Landlord.

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

     26. Rules and Regulations. Tenant shall, at all times during the Term and any extension
thereof, comply with all reasonable rules and regulations at any time or from time to time
established by Landlord covering use of the Premises and the Project. The current rules and
regulations are attached hereto as Exhibit E. If there is any conflict between said rules and
regulations and other provisions of this Lease, the terms and provisions of this Lease shall
control. Landlord shall not have any liability or obligation for the breach of any rules or
regulations by other tenants in the Project and shall not enforce such rules and regulations in a
discriminatory manner.

     27. Subordination. This Lease and Tenant’s interest and rights hereunder are and shall be
subject and subordinate at all times to the lien of any Mortgage now existing or hereafter created
on or against the Project or the Premises, and all amendments, restatements, renewals,
modifications, consolidations, refinancing, assignments and extensions thereof, without the
necessity of any further instrument or act on the part of Tenant; provided, however that
so long as there is no Default hereunder, Tenant’s
right to possession of
the Premises shall not be disturbed by the Holder of any such Mortgage. Tenant agrees, at the
election of the Holder of any such Mortgage, to attorn to any such Holder. Tenant agrees upon
demand to execute, acknowledge and deliver a Subordination, Non-disturbance and Attornment
Agreement in substantially the form attached hereto as Exhibit H, or such other instruments,
confirming such subordination, and such instruments of attornment as shall be requested by any
such Holder, provided any such instruments

 

 

contain appropriate non-disturbance provisions assuring Tenant’s quiet enjoyment of the
Premises as set forth in Section 24 hereof. Notwithstanding the foregoing, any such Holder
may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by notice in
writing to Tenant, and thereupon this Lease shall be deemed prior to such Mortgage without regard
to their respective dates of execution, delivery or recording and in that event such Holder shall
have the same rights with respect to this Lease as though this Lease had been executed prior to
the execution, delivery and recording of such Mortgage and had been assigned to such Holder. The
term "Mortgage” whenever used in this Lease shall be deemed to include deeds of trust,
security assignments and any other encumbrances, and any reference to the “Holder” of a Mortgage
shall be deemed to include the beneficiary under a deed of trust.

     28. Surrender. Upon the expiration of the Term or earlier termination of Tenant’s right of
possession, Tenant shall surrender the Premises to Landlord in the same condition as received,
subject to any Alterations or Installations permitted by Landlord to remain in the Premises, free
of Hazardous Materials brought upon, kept, used, stored, handled, treated, generated in, or
released or disposed of from, the Premises by any person other than a Landlord Party
(collectively, “Tenant HazMat Operations”) and released of all Hazardous Materials Clearances,
broom clean, ordinary
wear and tear and casualty loss and condemnation covered by Sections 18 and 19 excepted.
At least 3 months prior to the surrender of the Premises, Tenant shall deliver to Landlord a
narrative description of the actions, if any, proposed (or required by any Governmental Authority)
to be taken by Tenant in order to surrender the Premises (including any Installations permitted by
Landlord to remain in the Premises) at the expiration or earlier termination of the Term, free
from any residual impact from the Tenant HazMat Operations and otherwise released for unrestricted
use and occupancy (the “Surrender Plan”). Such Surrender Plan shall be accompanied by a current
listing of (i) all Hazardous Materials licenses and permits held by or on behalf of any Tenant
Party with respect to the Premises, and (ii) all Hazardous. Materials used, stored, handled,
treated, generated, released or disposed of from the Premises, and shall be subject to the review
and approval of Landlord’s environmental consultant. In connection with the:review and approval of
the Surrender Plan, upon the request of Landlord, Tenant shall deliver to Landlord or its
consultant such additional non-proprietary information concerning Tenant HazMat Operations as
Landlord shall reasonably request. On or before such surrender, Tenant shall deliver to Landlord
evidence that the approved Surrender Plan shall have been satisfactorily completed and Landlord
shall have the right, subject to reimbursement at Tenant’s expense as set forth below, to cause
Landlord’s environmental consultant to inspect the Premises and perform such additional procedures
as may be deemed reasonably necessary to confirm that the Premises are, as of the effective date
of such surrender or early termination of the Lease, free from any residual impact from Tenant
HazMat Operations. Tenant shall reimburse Landlord, as Additional Rent, for the actual out-of
pocket expense incurred by Landlord for Landlord’s environmental consultant to review and approve
the Surrender Plan and to visit the Premises and verify satisfactory completion of the same, which
cost. shall not exceed $5,000. Landlord shall have the unrestricted right to deliver such
Surrender Plan and any report by Landlord’s environmental consultant with respect to the surrender
of the Premises to third parties.

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

     Tenant shall immediately return to Landlord all keys and/or access cards to parking, the
Project, restrooms or all or any portion of the Premises furnished to or otherwise procured by

 

 

Tenant. If any such access card or key is lost, Tenant shall pay to Landlord, at Landlord’s
election, either the cost of replacing such lost access card or key or the cost of reprogramming
the access security system in which such access card was used or changing the lock or locks opened
by such lost key. Any Tenant’s Property, Alterations and property not so removed by Tenant as
permitted or required herein shall be deemed abandoned and may be stored, removed, and disposed of
by Landlord at Tenant’s expense, and Tenant waives all claims against Landlord for any damages
resulting from Landlord’s retention and/or disposition of such property. All obligations of Tenant
hereunder not fully performed as of the termination of the Term, including the obligations of
Tenant under Section 30 hereof, shall survive the expiration or earlier termination of the
Term, including, without limitation, indemnity obligations, payment obligations with respect to
Rent and obligations concerning the condition and repair of the Premises.

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

     30. Environmental Requirements.

     (a) Prohibition/Compliance/Indemnity. Tenant shall not cause or permit any Hazardous Materials
(as hereinafter defined) to be brought upon, kept, used, stored, handled, treated, generated in or
about, or released or disposed of from, the Premises or the Project
in violation of applicable. Environmental Requirements (as hereinafter defined) by Tenant or any Tenant Party. If Tenant
breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials
in the Premises during the Term or any holding over results in contamination of the Premises, the
Project or any adjacent property, or if contamination of the Premises, the Project or any adjacent
property by Hazardous Materials brought into, kept, used, stored, handled, treated, generated in or
about, or released or disposed of from, the Premises by anyone other than Landlord and Landlord’s
employees, agents and contractors otherwise occurs during the Term or any holding over, Tenant
hereby indemnifies and shall defend and hold Landlord, its officers, directors, employees, agents
and contractors harmless from any and all actions (including, without limitation, remedial or
enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments
arising out of or resulting therefrom), costs, claims, damages (including, without limitation,
punitive damages and damages based upon diminution in value of the Premises or the Project, or the
loss of, or restriction on, use of the Premises or any portion of the Project), expenses
(including, without limitation, attorneys’, consultants’ and experts’ fees, court costs and amounts
paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or
criminal penalties, injunctive or other relief (whether or not based upon personal injury, property
damage, or contamination of, or adverse effects upon, the environment, water tables or natural
resources), liabilities or losses (collectively, “Environmental Claims”) which arise during or
after the Term as a result of such contamination. This indemnification of Landlord by Tenant
includes, without limitation, costs incurred in connection with any investigation of site
conditions or any cleanup, treatment, remedial, removal, or restoration work required by any
federal, state or local Governmental Authority because of Hazardous Materials present in the air,
soil or ground water above, on, or under the Premises. Without limiting the foregoing, if the
presence of any Hazardous Materials on the Premises, the Building, the Project or any adjacent
property caused or permitted by Tenant or any Tenant Party results in any contamination of the
Premises, the Building, the Project or any adjacent property, Tenant shall promptly take all
actions at its sole expense and in accordance with applicable Environmental Requirements as are
necessary to return the Premises, the Building, the Project or any adjacent property to the
condition existing prior to the time of such contamination and shall otherwise comply with the
requirements of federal, state and local Governmental Authorities, provided that Landlord’s
approval of such

 

 

action shall first be obtained, which approval shall not unreasonably be withheld so long as
such actions would not potentially have any material. adverse long-term or short-term
effect on the Premises, the Building or the Project.

     (b) Business. Landlord acknowledges that it is not the intent of this Section 30 to
prohibit Tenant from using the Premises for the Permitted Use. Tenant may operate its business
according to prudent industry practices so long as the use or presence of Hazardous Materials is
strictly and properly monitored according to all then applicable Environmental Requirements. As a
material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its
business, Tenant agrees to deliver to Landlord prior to the Commencement Date a list
identifying each type of Hazardous Materials to be brought upon, kept, used, stored, handled,
treated, generated on, or released or disposed of from, the Premises and setting forth
any and all governmental approvals or permits required in connection with the
presence, use, storage, handling, treatment, generation, release or disposal of such Hazardous
Materials on or from the Premises (“Hazardous Materials List”). Tenant shall deliver to Landlord
an updated Hazardous Materials List at least once a year and shall also deliver an updated list
before any new type of Hazardous Material is brought onto, kept, used, stored, handled, treated,
generated on, or released or disposed of from, the Premises. Tenant shall deliver to Landlord true
and correct copies of the following documents (the “Haz Mat Documents”) relating to the use,
storage, handling, treatment, generation, release or disposal of Hazardous Materials prior to the
Commencement Date, or if unavailable at that time, concurrent with’ the receipt from or submission
to a Governmental Authority: permits; approvals; reports and correspondence; storage and
management plans, notice of violations of any Legal Requirements; plans relating to the
installation of any storage tanks to be installed in or under the Project (provided, said
installation of tanks shall only be permitted after Landlord has given Tenant its written consent
to do so, which consent may be withheld in Landlord’s sole and absolute discretion); all closure
plans or any other documents required by any and all federal, state and local Governmental
Authorities for any storage tanks installed in, on or under the Project for the closure of any
such tanks; and a Surrender Plan (to the extent surrender in accordance with Section 28
cannot be accomplished in 3 months). Tenant is not required, however, to provide Landlord with any
portion(s) of the Haz Mat Documents containing information of a proprietary nature which, in and
of themselves, do not’contain a reference to any Hazardous Materials or hazardous activities. It
is not the intent of this Section to provide Landlord with information which could be detrimental
to Tenant’s business should such information become possessed by Tenant’s competitors.

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

     (d) Testing. Landlord shall have the right to conduct annual tests of the Premises to
determine whether any contamination of the Premises or the Project has occurred as a result of
Tenant’s use. Tenant shall be required to pay the cost of such annual test of the Premises, which
costs shall not exceed $2,500; provided, however, that if Tenant conducts its own tests of the
Premises using third party contractors and test procedures acceptable to Landlord which tests are
certified to Landlord, Landlord shall accept such tests in lieu of the annual tests to be paid for
by Tenant. In addition, at any time, and from time to time, prior to the expiration or earlier
termination

 

 

of the Term, Landlord shall have the right to conduct appropriate tests of the Premises and
the Project to determine if contamination has occurred as a result of Tenant’s use of the
Premises. In connection with such testing, upon the request’of Landlord, Tenant shall deliver to
Landlord or its consultant such non-proprietary information concerning the use of Hazardous
Materials in or about the Premises by Tenant or any Tenant Party. If contamination has occurred
for which Tenant is liable under this Section 30, Tenant shall pay all costs to conduct
such tests. If no such contamination is found, Landlord shall pay the costs of such tests (which
shall not constitute an Operating Expense). Landlord shall provide Tenant with a copy of all third
party, non-confidential reports and tests of the Premises made by or on behalf of Landlord during
the Term without representation or warranty and subject to a confidentiality agreement. Tenant
shall, at its sole cost and expense, promptly and satisfactorily remediate any environmental
conditions identified by such testing in accordance with all Environmental Requirements to the
extent such conditions occur as the result of the acts or omissions of anyone other than Landlord
and Landlord’s employees, agents and contractors. Landlord’s receipt of or satisfaction with any
environmental assessment in no way waives any rights which Landlord may have against Tenant.

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

     (f) Tenant’s Obligations. Tenant’s obligations under this Section
30 shall survive the expiration or earlier termination of the Lease. During any period of time
after the expiration or earlier termination of this Lease required by Tenant or Landlord to
complete the removal from the Premises of any Hazardous Materials to the extent such conditions
occur as the result of the acts or omissions of anyone other than Landlord
and Landlord’s employees, agents and contractors (including, without limitation, the release and
termination of any licenses or permits restricting the use of the Premises and the completion of
the approved Surrender Plan), Tenant shall continue to pay the full Rent in accordance with this
Lease for any portion of the Premises not relet by Landlord in Landlord’s sole discretion, which
Rent shall be prorated daily.

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

     31. Tenant’s Remedies/Limitation of Liability. Landlord shall not be in default

 

 

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

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

     32. Inspection and Access. Landlord and its agents, representatives, and contractors may enter
the Premises at any reasonable time to inspect the Premises and to make such repairs as may be
required or permitted pursuant to this Lease and for any other business purpose. Landlord and
Landlord’s representatives may enter the Premises during business hours on not less than 48 hours
advance written notice (except in the case of emergencies in which case no such notice shall be
required and such entry may be at any time) for the purpose of effecting any such repairs,
inspecting the Premises, showing the Premises to prospective purchasers and; during the last year
of the Term, to prospective tenants or for any other business purpose. Landlord may erect a
suitable sign on the Premises stating the Premises are available to let or that the Project is
available for sale. Landlord may grant easements, make public dedications, designate Common Areas
and create restrictions on or about the Premises, provided that no such easement,
dedication, designation or restriction materially, adversely affects Tenant’s use or occupancy of
the Premises for the Permitted Use. At Landlord’s request, Tenant shall execute such instruments as
may be necessary for such easements, dedications or restrictions. Tenant shall at all times, except
in the case of emergencies, have the right to escort Landlord or its agents, representatives,
contractors or guests while the same are in the Premises, provided such escort does not materially
and adversely affect Landlord’s access rights hereunder.

     33. Security. Tenant acknowledges and agrees that security devices and services, if any, while
intended to deter crime may not in given instances prevent theft or other criminal acts and that
Landlord is not providing any security services with respect to the Premises. Tenant agrees that
Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with
respect to, any loss by theft or any other damage suffered or incurred by Tenant in connection with
any unauthorized entry into the Premises or any other breach of security with respect to the
Premises. Neither Landlord nor any of its officers, directors, employees, agents, contractors or
representatives shall be responsible for the personal safety of Tenant’s officers, employees,
agents, contractors, guests and invitees while any such person is in, on or about the Premises
and/or the Project. Tenant shall at Tenant’s cost obtain insurance coverage to the extent Tenant
desires protection against such criminal acts.

     34. Force Majeure. Landlord shall not be held responsible for delays in the performance of
its obligations hereunder when caused by strikes, lockouts, labor disputes, weather,

 

 

natural disasters, inability to obtain labor or materials or reasonable substitutes therefor,
governmental restrictions, governmental regulations, governmental controls, delay in issuance of
permits, enemy or hostile governmental action, civil commotion, fire or other casualty, and other
causes beyond its reasonable control (“Force Majeure”). Tenant shall not be held responsible for
delays in the performance of any of its obligations hereunder (with the exception of the timely
payment of Rent and any other amounts to be paid by Tenant hereunder) when caused by Force Majeure.

     35. Brokers, Entire Agreement, Amendment. Landlord and Tenant each represents and warrants
that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection
with this transaction and that no Broker brought about this transaction, other than Trammell Crow
and Sheer Partners. Landlord and Tenant each hereby agree to indemnify and hold the other harmless
from and against any claims by any Broker, other than the broker, if any named in this Section
35, claiming a commission or other form of compensation by virtue of having dealt with Tenant
or Landlord, as applicable, with regard to this leasing transaction. This Lease constitutes the
entire agreement of the parties with respect to the subject matter hereof. This Lease may not be
amended except by an instrument in writing signed by both parties hereto.

     36. Limitation on Landlord’s Liability. NOTWITHSTANDING ANYTHING SET FORTH HEREIN OR IN ANY
OTHER AGREEMENT BETWEEN LANDLORD AND TENANT TO THE CONTRARY: (A) LANDLORD SHALL NOT BE LIABLE TO
TENANT OR ANY OTHER PERSON FOR (AND TENANT AND EACH SUCH OTHER PERSON ASSUME ALL RISK OF) LOSS,
DAMAGE OR INJURY, WHETHER ACTUAL OR CONSEQUENTIAL TO: TENANT’S PERSONAL PROPERTY OF EVERY KIND AND
DESCRIPTION, INCLUDING, WITHOUT LIMITATION TRADE FIXTURES, EQUIPMENT, INVENTORY, SCIENTIFIC
RESEARCH, SCIENTIFIC EXPERIMENTS, LABORATORY ANIMALS, PRODUCT, SPECIMENS, SAMPLES, AND/OR
SCIENTIFIC, BUSINESS, ACCOUNTING AND OTHER RECORDS OF EVERY KIND AND DESCRIPTION KEPT AT THE
PREMISES AND ANY AND ALL INCOME DERIVED OR DERIVABLE THEREFROM; (B) THERE SHALL BE NO PERSONAL
RECOURSE TO LANDLORD FOR ANY ACT OR OCCURRENCE IN, ON OR ABOUT
THE PREMISES OR ARISING IN ANY WAY UNDER THIS LEASE OR ANY OTHER
AGREEMENT BETWEEN LANDLORD AND TENANT WITH RESPECT TO THE SUBJECT MATTER HEREOF AND ANY LIABILITY
OF LANDLORD HEREUNDER SHALL BE STRICTLY LIMITED SOLELY TO LANDLORD’S INTEREST IN THE PROJECT OR
ANY PROCEEDS FROM SALE OR CONDEMNATION THEREOF AND ANY INSURANCE PROCEEDS PAYABLE IN RESPECT OF
LANDLORD’S INTEREST IN THE PROJECT OR IN CONNECTION WITH ANY SUCH LOSS; AND (C) IN NO EVENT SHALL
ANY PERSONAL LIABILITY BE ASSERTED AGAINST LANDLORD IN CONNECTION WITH THIS LEASE NOR SHALL ANY
RECOURSE BE HAD TO ANY OTHER PROPERTY OR ASSETS OF LANDLORD OR ANY OF LANDLORD’S OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS. UNDER NO CIRCUMSTANCES SHALL LANDLORD OR ANY OF
LANDLORD’S OFFICERS. DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS BE LIABLE FOR INJURY TO TENANT’S
BUSINESS OR FOR ANY LOSS OF INCOME OR PROFIT THEREFROM.

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

 

 

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

     39. Right to Expand

     (a) Expansion in the Building. Tenant shall have the right, but not the obligation, to expand
the Premises (the “Expansion Right”) to include any space available in the Building (the
“Expansion Space”) upon the terms and conditions in this Section. If a vacancy occurs, Landlord
shall deliver to Tenant written notice (the “Expansion Notice”) of the availability of such
portion of the Expansion Space, together with the terms and conditions on which Landlord is
prepared to lease to Tenant such portion of the Expansion Space. Tenant shall have 10 business
days following delivery of the Expansion Notice to deliver to Landlord written notification of
Tenant’s exercise of the Expansion Right. Provided that no right to expand is exercised by any
tenant with superior rights, Tenant shall be entitled to lease such Expansion Space upon the terms
and .conditions set forth in . the Expansion Notice. Landlord agrees upon
written request of Tenant not later than 12 months prior to the expiration of the Term to provide
Tenant with written acknowledgement of any superior expansion rights outstanding at the time of
such request.

     (b) Amended Lease. If: (i) Tenant fails to timely deliver notice accepting the terms of an
Expansion Notice, or (ii) after the expiration of a period of 30 days from the date Tenant gives
notice accepting Landlord’s offer to lease such Expansion Space, no lease amendment or lease
agreement for the Expansion Space has been executed, and Landlord tenders to Tenant an amendment
to this Lease setting forth the terms for the rental of the Expansion Space consistent with those
set forth in the Expansion Notice and otherwise consistent with the terms of this Lease and Tenant
fails to execute such Lease amendment within 10 business days following such tender, Tenant shall
be deemed to have waived its right to lease such Expansion Space.

     (c) Exceptions. Notwithstanding the above, the Expansion Right shall not be in effect and may
not be exercised by Tenant:

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

     (ii) if Tenant has been in Default under any provision of the Lease 3 or more
times, whether or not the Defaults are cured, during the 12 month period prior to the date on
which Tenant seeks to exercise the Expansion Right.

     (d) Termination. The Expansion Right shall terminate and be of no further force or effect even
after Tenant’s due and timely exercise of the Expansion Right, if, after such exercise, but prior
to the commencement date of the Expansion Space; (i) Tenant fails to timely cure any
default by Tenant under the Lease; or (ii) Tenant has Defaulted 3 or more times during the period

 

 

from the date of the exercise of the Expansion Right to the date of the commencement of the
lease of the Expansion Space, whether or not such Defaults are cured.

     (e) Subordinate. Tenant’s rights in connection with the Expansion Right are and shall be
subject to and subordinate to any expansion or extension rights granted to other tenants of the
Project.

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

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

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

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

Upon the commencement of any Extension Term, Base Rent shall be payable at the Market Rate (as
defined below): Base Rent shall thereafter be adjusted on each annual anniversary of the
commencement of such Extension Term by a market rate adjustment percentage as determined by
Landlord and agreed to by Tenant at the time the Market Rate is determined. As used herein,
“Market Rate” shall mean the then 95% of the market rental rate as determined by Landlord and
agreed to by Tenant, which shall in no event be less than 103% of the Base Rent payable as of the
date immediately preceding the commencement of such Extension Term. In addition, Landlord may
impose a market rent for the parking rights provided hereunder.

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

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

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

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

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

 

 

Extension Rights.

     (e) Termination. The Extension Rights shall terminate and be of no further force or effect
even after Tenant’s due and timely exercise of an Extension Right, if, after such exercise, but
prior to the commencement date of an Extension Term, (i) Tenant fails to timely cure any default
by Tenant under this Lease; or (ii) Tenant has Defaulted 3 or more times during the period from
the date of the exercise of an Extension Right to the date of the commencement of the Extension
Term, whether or not such Defaults are cured; or (iii) Tenant fails to agree to the Market Rate as
determined by Landlord.

     41. Miscellaneous.

     (a) Notices. All notices or other communications between the parties shall be in writing and
shall be deemed duly given upon delivery or refusal to accept delivery by the addressee thereof if
delivered in person, or upon actual receipt if delivered by reputable overnight guaranty courier,
addressed and sent to the parties at their addresses set forth above. Landlord and Tenant may from
time to time by written notice to the other designate another address for receipt of future
notices.

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

     (c) Recordation. Neither this Lease nor a memorandum of lease shall be filed by or on behalf
of Tenant in any public record. Landlord may prepare and file, and upon request by Landlord Tenant
will execute, a memorandum of lease.

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

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

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

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

 

 

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

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

[signatures appear on the following page]

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	 	 	LANDLORD:
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 		 	 
	 	 	 	 	 
	

	 	Its:
	 	Treasurer	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ARE - 800019000110000
VIRGINIA MANOR, LLC, a
	 	 	Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Alexandria Real Estate Equities, L.P.,
	 	 	 	 	Its Sole Member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	ARE-QRS Corp.,
	 	 	 	 	 	 	Its Sole General Partner
	 
	 	 	 	 	 	 	 	 
	 	 	BAXTER HEALTHCARE CORPORATION
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:
	 	/s/ Michael C.Kelcy
	

	 	 	 	 	 	Its:
	 	Michael C. Kelcy
	

	 	 	 	 	 	 	 	Senior Vice President
	

	 	 	 	 	 	 	 	Real Estate Legal Affairs
	[Notary seal]
	 	 	 	 	 	 	 	 

 

 

a Delaware corporation

 

 

FIRST AMENDMENT TO LEASE

     This Manor Amendment to Lease (the ‘First Amendment”) to Lease is made as of April
30, 2001, by and between ARE-8000/9000/10000 Virginia Manor, LLC, a Delaware limited
liability company, having an address at 135 North Los Robles Avenue, Suite 250, Pasadena,
California 91101 (“Landlord”), and BAXTER HEALTHCARE CORPORATION, a Delaware corporation, having
an address at 10150 Old Columbia Road, Columbia, MD 21046 (“Tenant”).

RECITALS

     A. Landlord and Tenant have entered Into that certain Lease (the “Lease”) dated
as
of February 6, 2001 (the “Lease”), wherein Landlord leased to Tenant certain premises (the
“Premiss”) located at 9000 Virginia Manor Road, Beltsville, Maryland 20705 and described on
Exhibit A attached hereto, and more particularly described in the Lease.

     B.Tenant desires to expand the Premises demised under the Lease by adding 10,320
rentable square feet (the ‘Expansion Space”) commonly known as Suite 210 In the Building of which
the Premises are a part, and Landlord is willing to lease such portion of the Project to Tenant
on the terms herein set forth,

     C. Landlord and Tenant desire to amend the Lease to, among other things, add the Expansion
Space to the Premises demised under the Lease.

     D. Capitalized terms used herein without definition shall have the meanings defined for such
terms in the Lease.

AGREEMENT

     Now, therefore, the parties hereto agree that the Lease is amended as follows:

     1. Premises. Effective as of the date Landlord terminates the existing
lease under which a tenant Is occupying the Expansion Space and Delivers the Expansion Space to
Tenant, which is expected to occur on or about November 1, 2001 (the date of such delivery is
herein referred to as the “Commencement Date”), the Premises demised under the Lease are hereby
expanded to include the Expansion Space, consisting for all purposes
of
the Lease of
10,320 rentable square feet, as such Expansion Space is described on Exhibit B, attached
hereto and incorporated herein by this reference. From and after the Commencement Date, the Rent
payable under the Lease shall be increased by $10,320 per month to $70,381 per month and Tenant’s
Pro Rata Share shall increased by 5.38% to 36.69%.

     2. Tarim;
Acceptance of Premises. The term of the lemma of the Expansion
Space (the “Term”) shall commence as described in Section 1 above and shall
terminate as described in the Lease. Tenant shall accept the Expansion Space in its condition as
of the date of delivery of such Expansion Space to Tenant, subject to all applicable Legal
Requirement. Upon such delivery, Landlord shall have no obligation for any defects in the
Expansion Space, Tenant’s taking possession of the Expansion Space shall be conclusive evidence
that Tenant accepts the Ex p ansion Space and that the Expansion
Space was in good condition at the time possession was

 

 

taken.

     3. Alterations. Any alteration of all or a portion of the Expansion Space shall be
subject to all of the provisions of Section 12 of the Lease.

     4. Miscellaneous.

     (a) This First Amendment Is the entire agreement between the parties with
respect to the subject matter hereof and supersedes all prior and contemporaneous oral and
written agreements and discussions with respect to the matters addressed herein. This
Amendment may be amended only by an agreement in writing, signed by the parties hereto.

     (b) This First Amendment is binding upon and shall inure to the benefit of the parties
hereto, their respective agents, employees, representatives, officers, directors,
divisions, subsidiaries, affiliates, assigns, heirs,.successors in interest and
shareholders,

     (c) This First Amendment may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which when taken together shall constitute one and
the same instrument, The signature page of any counterpart may be detached therefrom
without impairing the legal effect of the signature(s) thereon provided such signature page
is attached to any other counterpart identical thereto except having additional signature
pages executed by other parties to this Amendment attached thereto.

(a) Landlord and Tenant each represent and warrant that It has not dealt with any broker,
agent or other person (collectively . `Brokar”) in connection with this transaction other
than Trammel Crow Company, and that no Broker other than Trammel Crow Company, who shall be
paid by Landlord pursuant to a separate Agreement, brought about this transaction. Landlord
and Tenant each hereby agree to indemnify and hold the other harmless from and against any
claims by any Broker other than Trammel Crow Company claiming a commission or other form of
compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard
to this leasing transaction.

     (d) Except as amended and/or modified by this Amendment, the Lease is hereby ratified
and confirmed and all other terms of the Lease shall remain in full force and effect,
unaltered and unchanged by this Amendment. In the event of any conflict between
the provisions of this Amendment and the provisions of the Lease, the provisions of this
Amendment shall prevail. Whether or not specifically amended by this Amendment, all of the
terms and provisions of the Lease are hereby amended to the extent necessary to give effect
to the purpose and intent of this Amendment.

(Signatures on Next Page)

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the day and
year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	 	 	BAXTER HEALTHCARE CORPORATION,
	 	 	a Delaware corporation,
	 
	 	 	 	 		 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LANDLORD:
	 
	 	 	 	 	 	 	 	 
	 	 	ARE-800019000110000
VIRGINIA MANOR, LLC, a
	 	 	Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	ALEXANDRIA REAL ESTATE EQUITIES, L.P., a
	 	 	 	 	Delaware limited partnership, managing member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: ARE-QRS CORP.,
	 	 	 	 	 	 	a Maryland corporation, general partner
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:
	 	/s/
Michael C. Celcy
	

	 	 	 	 	 	 	 	Michael C.1Celcy
	

	 	 	 	 	 	 	 	Senior Vice President
	

	 	 	 	 	 	 	 	Real Estate Legal Affairs

 

 

EXHIBIT A

     BEING part of the land conveyed by W. Carroll Beatt’, Personal
Representatives of the Estate of Pauline Roby. Seldanspinner to.1.mar L.. Sealing and Elmer F, Sealing, by’ need dated July 20,
1987 .and recorded among the Laid Records of Prince George’s County, Maryland in Liber
671, folio 207 and being more particularly described as follows

     BEGINNING TOR TEE SAME at A. ‘point . on the 5th or North
87 degrees 04 minutes 22 seconds West 995,83 foot line Of.the 40.67371 acre
tract as described in the aforear4d conveyance, distant 64.43 feat
westerly from the beginning of said line, said point being on the westerly
right of. w.y line of Virginia Manor Road as .described in a Deed ;of, Dedication from Elmer L. Sealing and Elsner F. Scaling to Prince George’s County,
Maryland dated November 2, 1988 and, recorded among the aforementioned Land Records
in Liber 7428, folio649, thence leaving said westerly right of tray
line and running with a part of said 5th deed line -as row surveyed,

	 	1.  	North 87 degrees 05 minutes 15 seconds West 931.46 feet. to an iron
        pipe found, thence leaving a*id line and running
	 
	 	2.  	North 2.3 degreas. 4.0 minutes 26 seconds East 260.53 feet to
        an iron pipe found, thence
	 
	 	3.  	North 16 deg.raea 0>* minutes 37 seconds East 176. 44 feet to
        an iron pipe, found, thence
	 
	 	4.  	North 57 degrees 01 minutes 31 seconds West’46.87 ‘feet
        to an iron pine set thence .
	 
	 	5.  	North 58 degrees 09’ minutes 36 seconds East 388.25 feet to an
        iron pipe found, thence

 

 

EXHIBIT B (CONT’D)

	 	6.  	North 24 degrees 33 minutes 02 seconds East’24565 feet t,O” an iron pipe
set on the southerly right }of way line of Murkirk Road as described in a Deed of
Declaration from Elmer L.. Sealing and Elmer F. Sealing to Prince George’s
County, Maryland dated November 2; 1989 and recorded among. 1he
aforementioned. Land Records in Tiber 7136, folio 561, thence running with
said southerly right of way line, -
	 
	 	7.  	South 75 degrees 17 minutes 07 seconds East 628.11 feet to an iron pipe
Found, thence.
	 
	 	8.  	South 145.27 degreem 45 minutes 58 seconds East 58 x 02 feet to an
iron pipe found on the aforementioned westerly right of way line of Virginia
-Manor Road, thence running with said Line,
	 
	 	9.  	South 19 degrees 43 minutes 40 seconds West 741.88 feet to the
point of beginning.

     COXI’2&rN=NC:
704,893 square feet or 16.18432 acres of land, m o r e o r less .

 

 

 

 

SECOND AMENDMENT TO LEASE

     This Second Amendment to Lease this “Second Amendment”) is made of April 30
, 2002, by and between ARE-800019000110000 VIRGINIA MANOR, LLC, a Delaware limited liability
company, having an address at 135 North Los Robles Avenue suite 250, Pasadena, California 91101
(“Landlord”), and BAXTER HEALTHCARE COIRATION, a Delaware corporation, having an address at 10150
Old Columbia Road, CoJdmbia, Maryland 21046 (“Tenant”). Any initially capitalized terms used but
not defined herein shall have the meanings given to them in the Lease (as
hereinafter defined).

RECITALS

     A. Landlord and Tenant have entered into that Certain Lease (the “Original Lease”) dated as
of February 6, 2001, wherein Landlord deed to Tenant certain premises (the “Original Premises”)
located at 9000 Virginia Manor Road, Beltsville, Maryland 20705 and legally described on Exhibit
Attached hereto, and more particularly described in the Lease.

     B. Landlord and Tenant have entered into that certain First Amendment to Lease (the “First
Amendment”) dated as of April 30, 2001, whereby Landlord and Tenant agreed to expand the Premises
by 10,320 rentable square feet as more particularly described therein (the “Additional Space”).
The Original Lease together with the First Amendment is herein the “Lease”, and the Original
Premises, as expanded by the Additional Space, is herein the “Premises.”

     C. Tenant has requested, and Landlord has agreed, to expand the Premises by leasing an
additional 14,165 rentable square feet located at 8000 Virginia Manor Road (the “Tenant A Space”),
an additional 8,395 feet located at 9000 Virginia Manor Road (the “Tenant B Space”)
and an additional 17,471 square feet located at 9000 Virginia
Manor Road, (the “Tenant C Space”) for  a total expansion right of an additional 40,031 square feet
(collectively, the “Expansion Space”).

     D. Landlord and Tenant desire to amend the Lease to, among other things, provide that the
Premises demised under the Lease include the Expansion Space.

AGREEMENT

          Now, therefore, the parties hereto agree that the Lease is amended as follows: 1.
Premises.

          (a) Effective as of May 1, 2002, the Premises demised under the Lease are hereby expanded to
include the Tenant A Space and the Tenant B Space, consisting for all purposes of the Lease of
22,560 rentable square feet, as such Tenant A Space and Tenant B Space is described on
Exhibit B, attached hereto and incorporated herein by this reference. From and
after September 15, 2002, the Base Rent payable under the Lease shall be increased by $22,560 per
month to $95,404 per month. Base Rent Adjustments under the Lease shall be made on the new Base
Rent. From and after May 1, 2002, Tenant’s Pro Rata Share shall be adjusted to be 48.44 %.

          (b) If the tenant currently occupying the Tenant C Space (“Tenant C”) vacates the Tenant C
Space before October 1, 2002 (the date, if any, on which Tenant C

 

 

vacates the Tenant C Space, is hereinafter referred to as the ‘Vacation Date”), the Premises
demised under the Lease shall be expanded to include the Tenant C Space, corl2isting for all
purposes of the Lease of 17,471 square feet, as such Tenant C Space is described on
Exhibit B attached hereto. From and after five months after the Vacation Date, if
any, the Base Rent payable under the Lease shall be increased by $14,196 per month to $109,600.
Base Rent Adjustments under the Lease shall be made on the new Base Rent.
from and after the Vacation Date, if any, Tenant’s Pro Rata Share shall be adjusted
to 57.54%. Tenant acknowledges that Tenant C is currently occupying the Tenant C Space Landlord shall in no event be liable for Tenant C’s failure to vacate the Tenant C Space or for Landlord’s
failure to deliver the Tenant C Space as a result thereof. The Term of the Lease, as defined in
the Lease, shall be extended to expire, unless terminated earlier pursuant to the Lease, ten (10)
years after the Vacation Date. If, however, Tenant C does not vacate the Tenant C Space by October
1, 2002, then the Term of the Lease, as defined in the Lease, shall be extended to expire, unless
terminated earlier pursuant to the Lease, on April 30, 2012.

          (c) Landlord agrees that to the extent any water infiltration problems presently exist and or
arise in the future at the Premises, Landlord shall promptly repair such problem and.
the cost of any such repair shall be included as an “Operating Expense.” In the event a water
infiltration problem arises at the Premises in the future, Tenant agrees to provide prompt notice
to Landlord of such problem.

     2. Miscellaneous.

          (a) This Second Amendment is the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and
discussions. This Second Amendment may be amended only by an agreement in writing, signed by the
parties hereto.

          (b) This Second Amendment is binding upon and shall inure to the benefit of the parties
hereto, their respective agents, employees, representatives, officers, directors, divisions,
subsidiaries, affiliates, assigns, heirs, successors in interest and shareholders.

          (c) This Second Amendment may be executed in any number of counterparts, each of which shall
be deemed an original, but all of which when taken together shall constitute one and the same
instrument. The signature page of any counterpart may be detached therefrom without impairing the
legal effect of the signature(s) thereon provided such signature page is attached to any other
counterpart identical thereto except having additional signature pages executed by other parties
to this Second Amendment attached thereto.

          (d) Except for Tenant’s dealings with Trammell Crow Company, Landlord and Tenant each
represent and warrant that it has not dealt with any broker, agent or other person (collectively
“Broker”) in connection with this transaction, and that no Broker brought about this transaction.
Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against
any claims by any Broker claiming a commission or other form of compensation by virtue of having
dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.

          (e) Except as amended and/or modified by this Second Amendment, the Lease is hereby ratified
and confirmed and all other terms of the Lease shall remain in full force and effect, unaltered and
unchanged by this Second Amendment. In the event of any conflict between the provisions of this
Second Amendment and the provisions of the Lease, the provisions of this Second Amendment shall
prevail. Whether or not specifically amended by this

2

 

Second Amendment, all of the terms and provisions of the Lease are hereby amended to the extent
necessary to give effect to the purpose and intent of this Second Amendment.

(Signatures on Next Page)

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day and year first above written.

	 	 	 	 	 
	

	TENANT:
	
	 
	 	 	 	 
	

	BAXTER HEALTHCARE CORPORATION 
 a Delaware corporation

	 
	 	 	 	 
	

	By:	 	 
	 
	 	 	 	 
	

	Its:
	 	 	 	 	 	 
	 
	 	 	 	 
	

	LANDLORD:

	 
	 	 	 	 
	

	ARE-800019000/10000 VIRGINIA MANOR, LLC, a Delaware corporation
	 
	 	 	 	 
	

	By:	ALEXANDRIA REAL ESTATE EQUITIES, L.P., a
Delaware partnership, its sole member
	 
	 	 	 	 
	 
	 	 	    By:	
	 
	 	 	 	 
	 
	 	 	    Name:	 
	 
	 	 	    Title:	 

 

 

THIRD AMENDMENT TO LEASE

     This Third Amendment (this ‘Third Amendment”) to Lease is made as of January 9, 2003 by and
between ARE-8000/9000/10000 VIRGINIA MANOR, LLC, a Delaware limited liability company, having an
address at 135 North Los Robles Avenue, Suite 250, Pasadena, California 91101 (“Landlord”), and
BAXTER HEALTHCARE CORPORATION, a Delaware corporation, having an address at 10150 Old Columbia
Road, Columbia, Maryland 21046 (“Tenant”). Any initially capitalized terms used, but not defined,
herein shall have the meanings given to them in the Lease (as hereinafter defined).

RECITALS

     A. Landlord and Tenant have entered into that certain Lease Agreement dated as of February 6,
2001 (the ‘Original Lease”), wherein Landlord leased to Tenant certain premises (the ‘Original
Premises”) located at 9000 Virginia Manor Road, Beltsville, Maryland 20705, and legally described
on Exhibit A attached hereto, and more particularly described in the Original Lease.

     B. Landlord and Tenant have entered into that certain First Amendment to Lease dated as of
April 30, 2001 (the “First Amendment”), whereby Landlord and Tenant agreed to expand the premises
demised under the Original Lease to include additional space (the “Additional Space”) located at
9000 Virginia Manor Road, Beltsville, Maryland 20705, as more particularly described in the First
Amendment.

     C. Landlord and Tenant have entered into that certain Second Amendment to Lease dated as. of
April 30, 2002 (the ‘Second Amendment”), whereby Landlord and Tenant agreed to expand the premises
demised under the Original Lease, as amended by the First Amendment, to include additional. space
(the “Expansion Space”) located at 8000 and 9000 Virginia Manor Road, Beltsville, Maryland 20705,
as more particularly described in the Second Amendment. The Original Premises, as expanded by the
Additional Space and the Expansion Space, is herein, the “Premises.” The Original Lease, as so
amended by the First Amendment, the Second Amendment, is herein referred to as the “Lease.”

     D. Included within the Premises is certain mezzanine space which is comprised of 891 square
feet (the “Mezzanine Space”). Tenant has requested, and Landlord has agreed, for purposes of
calculating Base Rent only, to exclude the Mezzanine Space from the Prem ises. Tenant has also
requested, and Landlord has agreed, that Tenant may demolish the Mezzanine Space, and Landlord
will provide reimbursement for certain costs and expenditures to be incurred by Tenant in
demolishing of the Mezzanine Space and improving certain portions of the Premises.

     E. Landlord and Tenant desire to further amend the Lease to, among other things, provide for
the reduction in the square footage of the Premises for the purposes of calculating Base Rent, to
permit the demolition of the Mezzanine Space, and to provide for the reimbursement of certain
costs associated with the demolition of the Mezzanine Space and certain other improvements to be
made by Tenant to the Premises, upon the terms and subject to the conditions which are hereinafter
set forth.

AGREEMENT

Now, therefore, the parties hereto agree that the Lease is amended as follows:

 

 

1. Base Rent Reduction. For purposes of calculating Base Rent, effective September 15,
2002, the total square footage of the Premises shall be reduced by the Mezzanine Space, which
shall result in a total of 109,521 square feet (the “Adjusted Base Rent Space”). Landlord and
Tenant expressly acknowledge and agree that the Adjusted Base Rent Space shall be applicable
solely for the purposes of calculating Base Rent under the Lease and have no effect on the
calculation of, or Tenant’s payment obligations for, Operating Expenses and any other amounts
due under the Lease and that Landlord will continue to calculate Operating Expenses based on
total square footage of the Project (191,884 square feet) and total square footage of the
Premises (110,412 square feet).

2. Demolition of Mezzanine Space,. The parties recognize and acknowledge
that the Mezzanine Space consists of 891 square feet of mezzanine space located in Suite 140 of
8000 Virginia Manor Road. Tenant is hereby permitted to demolish the Mezzanine Space and
Landlord agrees that at such time as Tenant completes the demolition of the Mezzanine Space,
and provides Landlord with evidence satisfactory to Landlord of all expenditures associated
with the demolition of the Mezzanine Space, Landlord shall reimburse Tenant for the costs of
such demolition in an amount not to exceed $5,000.

3. ADA Compliance. Tenant agrees to make all alterations and modifications to the
interior or the exterior of the Premises (the “ADA Compliance Work’) necessary in order for the
Premises to comply with the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (“ADA’).
At such time as Tenant completes such ADA Compliance Work and provides Landlord with evidence
satisfactory to Landlord of all expenditures associated with such ADA Compliance Work, Landlord
shall reimburse Tenant for the costs of such ADA Compliance Work in an amount not to exceed
$25,000.

4. HVAC Units. Tenant hereby agrees to replace the air handling
units to located on the roof of the Premises (the ‘HVAC Units”). At such time that Tenant completes
sucF replacement of the HVAC units, and provides Landlord with evidence satisfactory to
Landlord of all expenditures incurred by Tenant associated with the replacement of the HVAC
Units, Landlord shall reimburse Tenant for the costs of such replacement of the HVAC Units in
the an amount not to exceed $90,000 (the “HVAC Reimbursement Allowance”). in the event the
actual costs of replacing the HVAC Units exceeds the HVAC Reimbursement Allowance, Landlord
shall provide to Tenant in the form of a non-interest bearing loan (the “HVAC Loan”), the
difference between the HVAC Reimbursement Allowance and the actual cost of replacing the HVAC
units, in an amount not to exceed $90,000 (the “HVAC Cost Overrun”). Landlord shall amortize
the HVAC Loan on a straight-line basis over the remaining Term of the Lease, and Tenant hereby
agrees to make equal monthly payments on the HVAC Loan as Additional Rent.

5. Water Infiltration. Tenant shall be permitted to remediate the existing water
infiltration condition at the Premises. At such time as Tenant remediates such water
infiltration condition (the “Water Infiltration Remediation”) and provides Landlord with
evidence satisfactory to Landlord of all expenditures associated with such Water Infiltration
Remediation, Landlord shall reimburse Tenant an amount equal to seventy-five percent (75%) of
the total cost of such Water Infiltration Remediation (which total cost is estimated not to
exceed $150,000), up to a maximum of $112,500 (the ‘Water Infiltration Reimbursement
Allowance”). Tenant shall be responsible for the remaining costs of the Water Infiltration
Remediation above and beyond the Water Infiltration Reimbursement Allowance (the ‘Tenant Water
Infiltration System Costs”).

At Tenant’s option,. Landlord agrees to provide to Tenant in the form of a non-interest bearing

©All Rights Reserved
2001 Alexandria Real Estate Equities, Inc.

 

 

loan (the `Water Infiltration System Loan”), up to $37,500 of the Tenant Water Infiltration System
Costs (which equals twenty-five percent of the estimated total cost of the Water Infiltration
Remediation), to be amortized on a straight-line basis over the remaining Term of the Lease, and
Tenant agrees to make equal monthly payments on the Water Infiltration System Loan as Additional
Rent.

6. Miscellaneous.

          (a) This Third Amendment is the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous oral and written agreements aid
discussions. This Third Amendment may be amended only by an agreement in writing, signed by the
parties hereto.

          (b) This Third Amendment is binding upon and shall inure to the benefit of the parties
hereto, their respective agents, employees, representatives, officers, directors, divisions,
subsidiaries, affiliates, assigns, heirs, successors in interest and shareholders.

          (c) This Third Amendment may be executed in any number of counterparts, each of which shall
be deemed an original, but all of which when taken together shall constitute one and the same
instrument. The signature page of any counterpart may be detached therefrom without impairing the
legal effect of the signature(s) thereon provided such signature page is attached to any other
counterpart identical thereto except having additional signature pages executed by other parties
to this Third Amendment attached thereto.

          (d) Landlord and Tenant each represent and warrant that it has not dealt with any broker,
agent or other person (collectively, ‘Broker”) in connection with this transaction, and that no
Broker brought about this transaction. Landlord and Tenant each hereby agree to indemnify and hold
the other harmless from and against any claims by any Broker claiming a commission or other form
of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to
this leasing transaction.

          (e) Except as amended and/or modified by this Third Amendment, the Lease is hereby ratified
and confirmed and all other terms of the Lease shall remain in full force.and effect, unaltered
and unchanged by this Third Amendment. In the event of any conflict between the provisions of this
Third Amendment and the previsions of the Lease, the provisions of this Third Amendment shall
prevail. Whether or not specifically amended by this Third Amendment, all of the terms and
provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose
and intent of this Third Amendment.

(Signatures on Next Page)

 

 

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

	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 
	 	 	BAXTER HEALTHCARE CORPORATION, 
a Delaware
corporation
	 
	 	 	 	 
	

	 	By:
	 	
	

	 	 
	 	

	

	 	Its:

	 
	 	 	 	 
	 	 	LANDLORD:
	 
	 	 	 	 
	 	 	ARE-8.000/9000110000 VIRGINIA MANOR,
LLC, a
Delaware limited liability company
	 
	 	 	 	 
	

	 	By:
	 	ALEXANDRIA REAL ESTATE
	

	 	 	 	     EQUITIES, L.P.,
	

	 	 	 	     a Delaware limited partnership,
	

	 	 	 	     its sole member
	 
	 	 	 	 
	

	 	 	 	     By: ARE-QRS CORP.,
	

	 	 	 	          a Maryland corporation,
	 
	 	 	 	 
	

	 	 	 	          Name:

	

	 	 	 	          Title:
	 
	 	 	 	 
	

	 	 	 	          its sole general partner

 

 

EXHIBIT A

CURRENT PREMISES

SITE PLAN

NOT TO eOale

 

 

Baxter BioScience Facilities

8000 and 9000 Virginia Manor Road

Beltsville, Maryland 20705

     This document is to serve as a general inventory of assets that are currently in the premises
and not an amendment to a legal document. Equipment and specifications contained in this inventory
list are subject to change without notice. Should an asset purchase/assigrunent/sublease take
place Baxter and prospective tenant will verify that the items represented above are accurate.

	   	I            GENERAL

	 	   	A            SITE UTILITIES

	 	1  	WATER Connected to WSSC with 8” combined water service to the
main raiser room. This is feed from a new line on Muirkirk Rd., which is fed
from a 22” main on Virginia Manor Road. The riser room serves the building’s
potable and fire fighting water. Potable water is feed into the building in a
4” line which reduced when split into 2 each 2-l/2“lines with meters. The
landlord monitors the water consumption and bills for usage over a set amount.
The sprinklers are divided into 3 zones for the building and monitored by the
suites and the landlord.
	 
	 	2  	SANITARY The entire building is connected to a single sanitary
waste line ‘which runs the length of the building and combines the waste stream
of the entire building to 8” line out of the building and to WSSC.
	 
	 	3  	STORM WATER The storm water is collected from the roof by 12”
lines that leave along the back of the building in 4 individual locations.
	 
	 	4  	POWER PEPCO feeds the building with a 4.000 amp, 480-volt
service to a main breaker in the building’s electrical room. From there, the
power is feed through individual meters and fused disconnects to the suites.
	 
	 	5  	GAS There are individual gas meters along the back of the
building feeding each suite with low or medium pressure gas.

	 	   	B            SIZE

Baxter’s leases at 8000 & 9000 Virginia Manor Road include:

Suite 260-290 about 35,000 sq ft The Pilot Plant

Suite 230 about 17,500 sq ft of warehouse and office

Suite 210 about 2,500 sq ft of expansion space Suite

207 about 16,000 sq ft of lab and office Suite 200 &
206 about 25,000 sq ft of lab and office.

Suite 140 at 8000 Virginia Manor about 13,000 sq ft of high-end office

 

 

	   	II 9000 VIRGINIA MANOR ROAD — LABORATORY AND OFFICE SPACE, SUITE 207

	 	1  	Utilities

	 	a.  	Electrical Power

	 	1.  	800 amp metered service from main electrical room.
	 
	 	2.  	Emergency panels in place but not powered.
	 
	 	3.  	Life safety lighting is battery back up

	 	b.  	Water

	 	1.  	Fed from building 2 1/2” line with remote meter.
	 
	 	2.  	Back flow preventers at lab water, hot water and washers.
	 
	 	3.  	2 hot water heaters, one for lab and one for kitchen and restrooms.

	 	c.  	Others

	 	1.  	Sanitary and storm drains are directly to the building systems.
	 
	 	2.  	Piping in lab for Vacuum and compressed air as well
as USP water are installed and terminate at the rear of the laboratory
space.
	 
	 	3.  	Date and phone are less then 50% pulled in CATS=.
Provisions have been made for data wiring in the laboratory.
	 
	 	4.  	Medium pressure natural gas for hot water heaters and HVAC
	 
	 	5.  	Low-pressure natural gas for lab benches with central shut off.
	 
	 	6.  	Independent fire monitoring system.

	 	2  	Size

	 	a.  	About 16,000 sq ft
	 
	 	b.  	About 7,000 in lab and 9,000 in office and common space.

	 	3  	Laboratory Space

	 	a.  	9 separated laboratory rooms with 4 separated HVAC units and one
100% outside air for make up with humidity controls.

	 	1.  	New Mott casework with enlarged knees
spaces to accommodate computers and communications.

	 	2.  	Removable shelving and lab utilities on columns to
allow double bench if needed.

	 	b.  	Central equipment hall with separate air handling, humidity
control, safety showers and eyewashes, provisions for future emergency power

	 	c.  	Wash room with provisions for steam generator and washers and
autoclaves with exhaust hoods provided

	 	d.  	Electrical room and waste/mechanical room.

 

 

	 	e.  	Expansion space with outside overhead door.

	 	4  	HVAC

	 	a.  	All 8 RTU are gas fired and have Siemens
controls tied to a central computer station.y
	 
	 	b.  	Fume hood are in 2 common groups. Each group has a set
of two exhaust fans in tandem computer controlled with alternate run and
automatic backup controlled by Siemens Building Automation system.
	 
	 	c.  	Each lab or group of labs have separate recirculating
air handlers with one air handler for 100% outside make up air to each lab
to compensate for hood exhaust
	 
	 	d.  	See HVAC Schedule attached

	 	5  	Office Space

	 	a.  	Break room and 10 individual 10’x12’ offices.
	 
	 	b.  	Common work area for 14 8’x8’ cubicles and
additional common work and gathering space.
	 
	 	c.  	Large kitchen space and bathrooms with showers.
	 
	 	d.  	Foyer with animal hair carpet and glass
walls and door. (Glass is not installed but in storage in warehouse.)

	   	II 8000 VIRGINIA MANOR. ROAD, SUITE 140

	 	   	A            OFFICE SPACE

	 	1.  	One president’s office with private toilet and shower
	 
	 	2.  	Three Vice president offices (15’x15’) with glass wall
	 
	 	3.  	Nine Director offices (10’x15’) with glass wall
	 
	 	4.  	15 manager office (10’x12’) with side light
	 
	 	5.  	27 cubicles (8’x8’ x 42” high)
	 
	 	6.  	Three conference room
	 
	 	7.  	File room with rolling high-density file and Halon type fire suppression system.
	 
	 	8.  	Kitchen and LAN room
	 
	 	9.  	Furnishings included:

	 	a.  	One Director office with Herman Miller.’ Giege,
Keyeira executive u in Amber Cherry

	 	1)  	Keyeira conference desk. (NDEKR-31722)
	 
	 	2)  	Keyeira stacking storage (NOU5-167839
	 
	 	3)  	Keyeira
rear unit (NROBLC5A4-257829)
	 
	 	4)  	Keyeira
bridge return top (NUOU-25421

7

 

	 	5)  	Leather task chair and two guest chairs ( source unknown)

	 	b.  	15 Manager offices are Herman Miller Meridian 5000 Black and
cherry including:

	 	1)  	D-shaped peninsula 72“x30” (5-7230-SD)
	 
	 	2)  	Bridge. Open42“x24” (5PO-4224-D)
	 
	 	3)  	Desk shell back 7s“x24” (5PO-7224-LL)
	 
	 	4)  	2 draw lateral std (26-3020-2N)
	 
	 	5)  	Desk mounted tack board 72“x24” (5-7224-DMT)
	 
	 	6)  	2 each Aeron side chairs, black (AE500P)
	 
	 	7)  	Bookcase 55“x30“xl5” (46-3015-OB-55)

	 	   	c            Cubicles are Herman Miller Etho-space

	 	1)  	Fabric tile faced panels
	 
	 	2)  	Painted tile faces under work surface
	 
	 	3)  	U shaped work surface
	 
	 	4)  	Herman Miller Caper stacking side chair, Black (WC420P)
	 
	 	5)  	Free standing ped file over file (160-1520-B)
	 
	 	6)  	Free standing ped box, box, file (160-1520-F

	 	   	d            Conference rooms include:

	 	1)  	Vertex 16” sight line table w/ bases
	 
	 	2)  	Matching Credenza 72” (VC-72-HD)
	 
	 	3)  	19 Aeron pneumatic lift chairs (AE112PWB
	 
	 	4)  	12” wood conference table (Source unknown)
	 
	 	5)  	1 rear projection screen in main conference room
	 
	 	6)  	2 electric roll down screens

	 	   	e             Miscellaneous

	 	1)  	Rolling High density filing system by White
with 5 double sides units 132” long and 76” high
	 
	 	2)  	Human Miller 4 high 42” wide white lateral files 9 each B MECHANICAL & ELECTRIC

	 	1.  	Two each 25 ton Aaon roof top unit with gas fired heat model
45703-RK-25-2EO-322-JKOSAAOOH0000X y
	 
	 	2.  	14 Fan powered Variable Air Volume boxes with electric reheats
	 
	 	3.  	Siemens Building Automation System with graphic display and data collection.

7

 

	 	4.  	Graphic Over-ride panel for extended occupied and weekend hours. Two
Humidifiers for comfort, controlled by BAS.
	 
	 	6.  	Recirculating hot water hearer.
	 
	 	7.  	Split unit cooling coils in LAN room.
	 
	 	8.  	800 Amp service at 208 volts

	 	a.  	Emergency lighting is battery back-up

	 	C.  	OTHERS

	 	1.  	Separate Fire alarm system
	 
	 	2.  	Card reader controlled access on exterior doors and bulk file room.
	 
	 	3.  	Local cameras outside two doors.(no monitoring)
	 
	 	4.  	Computerized lighting in cubicle space. Each light is, individually computer
controlled with separate up and down components.
	 
	 	5.  	Privet office lighting is motion controlled at each room.
	 
	 	6.  	4 data/phone ports per workstation labeled to central rack and wired with CAT
5 ± cable.

 

 

SUITE 207 AT 9000 VIRGINIA MANOR ROAD I-

IVAC SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	AREA SERVING	 	 	DESCRIPTION	 	 	MFG	 	 	MODEL	 	 	LOCATION	 
	 	Break and serving area

	 	 	RTUI ser no 200307AKGK50411

13 Ton unit
	 	 	Aaon
	 	 	47777-RK-13-3-EO-322

FGODOOOOOI-IOOMOX
	 	 	Roof top	 
	 	Office Spaces

	 	 	RTU2 ser no. 200307AKGK50412
13 Ton unit
	 	 	Aaon
	 	 	47777-RK-13-3-FO-322

FGOD00000HOOMOX
	 	 	Roof top	 
	 	Laboratory space Rooms, 298,

296, 294, 292, 291

	 	 	RTU3 ser no. 200307AKGHSO413
8 Ton unit
	 	 	Aaon
	 	 	47779-RK-08-3-EO-312

OHOSOOOOOIIOOMOX
	 	 	Roof top	 
	 	Laboratory space

Rooms, 308, 309

	 	 	RTU4 ser no 200307-AKGB50428

3•Ton unit
	 	 	Aaon
	 	 	47780-RK-03-3-EO-311

OGOSOOOOOI-IOOMOX
	 	 	Roof top	 
	 	Laboratory space

Rooms, 304, 308

	 	 	RTU5 ser no 200307-AKGD50429

5 Ton unit
	 	 	Aaon
	 	 	47781-RK-05-3-FO-322

OI-IOSOOOOOIIOOMOX
	 	 	Roof top	 
	 	Laboratory space
Room 303

	 	 	RTU6 ser no 200307-AKGB50430

3 Ton unit
	 	 	Aaon
	 	 	47780-RK-03-3-EO-31 1

OGOSOOOOOI-IOOMOX
	 	 	Roof top	 
	 	Laboratory space
All halls and wash room

	 	 	RTU7 ser no 200307-AKGK50414

13 Ton Unit
	 	 	Aaon
	 	 	47782-RK-13-3-EO-322

OGOSOOOOOHOOMOX
	 	 	Roof top	 
	 	Make up air to all labs

	 	 	RTU8 ser no. 200307-AKGP50433
100% Outside Air 25 Ton unit
	 	 	Aaon
	 	 	47783-RK-25-3-EO-327

EFOSKOOODI-IOOMOX
	 	 	Roof top	 
	 	Fume Hood Exhausts

	 	 	EF 2,3,4,and 5
	 	 	Twin city
	 	 	BCV150
	 	 	Rooftop	 
	 	Rest Room Exhaust

	 	 	EFl
	 	 	Acme
	 	 	PRN 135
	 	 	Roof top	 
	 	Autoclave Capture Hood

	 	 	EF6
	 	 	Acme
	 	 	PDU 135
	 	 	Roof top	 
	 	IMech & Elect. rooms exhaust

	 	 	EF7
	 	 	Acme
	 	 	PDU135
	 	 	Roof Top

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