Document:

EXHIBIT
      10.27

    
 

    FIRST
      AMENDMENT TO MASTER LEASE AGREEMENT

     

    AND
      FIRST AMENDMENT TO BUILDING LEASES

     

    THIS
      FIRST AMENDMENT TO MASTER LEASE AGREEMENT AND FIRST AMENDMENT TO BUILDING LEASES
      (“First
      Amendment”)
      is entered into as of October 2, 2006 by SLOUGH SSF, LLC, a Delaware
      limited liability company (“Landlord”),
      and GENENTECH, INC., a Delaware corporation (“Tenant”),
      with reference to the following facts:

     

    A.  Landlord
      and Tenant are parties to a Master Lease Agreement dated as of November 1,
      2004 (the “Agreement”)
      which provides for, among other things, the construction of eight office and/or
      research and development buildings at the Britannia East Grand Business Park
      (the “Center”),
      commonly known as 450-660 East Grand Avenue, South San Francisco, California,
      and the leasing of such buildings to Tenant pursuant to individual building
      leases entered into or to be entered into by Landlord and Tenant pursuant to
      the
      Agreement (collectively, the “Building
      Leases,”
      consisting of a Building 1 Lease dated as of November 1, 2004, a
      Building 3 Lease dated as of November 1, 2004, a Building 4 Lease
      dated as of November 1, 2004, a Building 5/6 Lease dated as of
      November 1, 2004, a Building 2 Lease dated as of July 1, 2005, a
      Building 7 Lease dated as of March 1, 2006, a Building 8 Lease
      dated as of March 1, 2006 and a Building 9 Lease dated as of
      March 1, 2006). The Building 7 Lease, Building 8 Lease and
      Building 9 Lease are being executed substantially concurrently with this
      Agreement, while the remaining Building Leases have already been executed by
      the
      parties). Terms used as defined terms in this First Amendment but not expressly
      defined herein shall have the meanings assigned to such terms in the
      Agreement.

     

    B.  Landlord
      and Tenant wish to update or correct certain Exhibits attached to the Agreement
      and to amend or clarify certain other matters set forth in the Agreement and
      in
      the Building Leases, all as more particularly set forth in this First
      Amendment.

     

    NOW,
      THEREFORE, in consideration of the mutual obligations set forth herein and
      for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, Landlord and Tenant agree as follows:

     

    1.  Phase
      II Construction Schedules.
      The construction schedule for the Phase II Buildings attached to the
      Agreement as part of Exhibit B
      thereto consisted of a single-line, non-detailed schedule for each Phase II
      Building, since the relevant dates were subject to the possible exercise of
      Tenant’s right under Section 1(b) of the Agreement to either defer or
      accelerate the construction of and Rent Commencement Date for any one or more
      of
      the Phase II Buildings. Tenant elected to accelerate the construction of
      and Rent Commencement Date for Building 2, and the resulting acceleration
      of dates is reflected in the terms of the individual Building Lease for
      Building 2, which has already been executed by the parties. Tenant did not
      exercise its right to elect any such deferral or acceleration for any of the
      other Phase II Buildings. Accordingly, the contemplated Rent Commencement
      Dates for all of the Phase II Buildings other than Building 2 remain
      as set forth in the Agreement and reiterated in Paragraph 3 of this First
      Amendment, below, except that as shown in Paragraph 3 below, the parties
      have agreed to extend the contemplated Rent Commencement Dates for
      Buildings 8 and 9 to May 1, 2008 and July 1, 2008, respectively.
      The individual Building Lease for Building 2 included a detailed

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    construction
      schedule approved by the parties at the time that Building Lease was signed.
      The
      construction schedules attached as Exhibit B
      to this First Amendment shall be the operative construction schedules for the
      remaining Phase II Buildings (Buildings 7, 8 and 9) as of the date of
      this First Amendment, shall replace and supersede the corresponding schedule
      attached to the Agreement, and shall be attached to the respective individual
      Building Leases for Buildings 7, 8 and 9 when such individual Building
      Leases are executed (which is intended to occur substantially concurrently
      with
      the execution of this First Amendment).

     

    2.  Revised
      Rent Schedules; Building Square Footages.
      The rent schedules attached to the Agreement as Exhibits C-1
      through C-5
      (i) contained inadvertent clerical errors in the tables for a number of the
      Buildings, particularly in the “Total Base Rent” columns, and (ii) were
      based on estimated rather than actual square footages for the respective
      Buildings (since the actual square footages were not known at the time). Final,
      actual square footages as determined by Landlord’s architect and approved by
      Tenant’s architect are not yet available for any of the Phase II Buildings,
      but are now available for the Phase I Buildings and have been reviewed and
      approved by the parties and their respective architects as follows:

     

    
      	 	
              Building
                1

            	
              107,733
                sq ft

            	 
	 	
              Building
                3

            	
              118,981
                sq ft

            	 
	 	
              Building
                4

            	
              78,200
                sq ft

            	 
	 	
              Building
                5/6

            	
              151,874
                sq ft

            	 

    

    

     

    The
      “Acknowledgment of Rent Commencement Date” forms attached as Exhibit E
      to the respective individual Building Leases contemplate that a copy of the
      minimum rent schedule in effect for the applicable Building as of its Rent
      Commencement Date will be attached to the “Acknowledgment of Rent Commencement
      Date” form for the applicable Building. The rent schedules attached to the
      Agreement as Exhibits C-3
      through C-5
      dealt solely with rents for Phase II Buildings under various deferral or
      acceleration scenarios, and are therefore now irrelevant since Tenant did not
      elect any deferral or acceleration for any of the Phase II Buildings other
      than Building 2 (and the rent schedule set forth in the individual Building
      Lease already executed for Building 2 is correct). In light of all of the
      foregoing circumstances, Landlord and Tenant agree as follows:

     

    (a)  The
      rent schedule attached hereto as Exhibit C-1
      (the “Phase I
      Master Rent Schedule”)
      replaces and supersedes Exhibit C-1
      to the Agreement, and the rent schedule attached hereto as Exhibit C-2
      (the “Phase II
      Master Rent Schedule”)
      replaces and supersedes Exhibit C-2
      to the Agreement. Such replacement schedules in each case incorporate any
      necessary corrections to clerical errors that were contained in the schedules
      originally attached to the Agreement, and the Phase I Master Rent Schedule
      also reflects the final, agreed square footages for the Phase I Buildings
      as set forth above. As noted above, Exhibits C-3
      through C-5
      to the Agreement have no further effect or significance under the Agreement,
      so
      the parties have deemed it unnecessary to prepare corrected versions of those
      schedules.

     

    (b)  The
      rent schedules for Building 5/6 and Building 4 as shown on the
      Phase I Master Rent Schedule also reflect the Rent Commencement Dates which
      have already occurred for those two Buildings, and are therefore the final
      and
      effective rent schedules for those two Buildings. Accordingly, those rent
      schedules shall be attached to the 

     

    

    
      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

    

    

    “Acknowledgment
      of Rent Commencement Date” forms for those respective Buildings, which are being
      executed substantially concurrently with this First Amendment, and upon the
      execution of such “Acknowledgment of Rent Commencement Date” form for the
      respective Building, such final schedule shall supersede (retroactively to
      the
      applicable Rent Commencement Date) the previously estimated rent schedule set
      forth in Section 3.1(a) of the respective Building Lease. To the extent
      there has been any overpayment or underpayment of rent since the applicable
      Rent
      Commencement Date (due to minor adjustments in square footage or for any other
      reason), any such overpayment shall be credited against Tenant’s next monthly
      rent payment under the applicable Building Lease and any such underpayment
      shall
      be paid by Tenant to Landlord within twenty (20) days after mutual execution
      of
      this First Amendment.

     

    (c)  The
      rent schedules for the other Buildings as shown on the Phase I Master Rent
      Schedule or Phase II Master Rent Schedule, as applicable, are based on the
      presently estimated Rent Commencement Dates for such Buildings and, in the
      case
      of the Phase II Buildings, on the presently estimated square footages for
      such Buildings (the square footages used in the rent schedules for
      Buildings 1 and 3, however, are the final, agreed square footages for those
      Buildings as set forth above). Such rent schedules shall therefore be subject
      to
      further revision to reflect final Rent Commencement Dates and (in the case
      of
      the Phase II Buildings) final square footages, when determined, and as so
      revised shall be attached to the “Acknowledgment of Rent Commencement Date”
forms for those respective Buildings when such forms are executed, and upon
      the
      execution of such “Acknowledgment of Rent Commencement Date” form for the
      respective Building, such final schedule shall supersede (retroactively to
      the
      applicable Rent Commencement Date) the previously estimated rent schedule set
      forth in Section 3.1(a) of the respective Building Lease. To the extent
      there has been any overpayment or underpayment of rent since the applicable
      Rent
      Commencement Date (due to minor adjustments in square footage or for any other
      reason), any such overpayment shall be credited against Tenant’s next monthly
      rent payment under the applicable Building Lease and any such underpayment
      shall
      be paid by Tenant to Landlord within twenty (20) days after mutual execution
      of
      the applicable Acknowledgment of Rent Commencement Date form.

     

    3.  Revised
      Building Uses; TI Periods.
      Landlord and Tenant have agreed that the primary uses of certain Buildings
      as
      previously designated in the Agreement will, at Tenant’s request, be changed
      from office to lab use or vice versa, and have further agreed that
      notwithstanding such change in use for certain Buildings and notwithstanding
      the
      provisions in the Agreement and in certain individual Building leases for a
      longer TI Period (from Structural Completion to Rent Commencement Date) for
      lab
      buildings than for office buildings, (i) the calculation of the Rent
      Commencement Dates for the respective Buildings shall be based on the number
      of
      days after Structural Completion indicated in the following table (which
      replaces and supersedes the table in Section 1(b) of the Agreement),
      regardless of the actual use for which the applicable Building will be
      constructed; (ii) the actual (in the case of Buildings 5/6 and 4) or
      presently estimated Rent Commencement Dates for the respective Buildings are
      as
      set forth in the following table; (iii) the contemplated primary Building
      uses for the respective Buildings are as indicated in following table (however,
      reference to such primary uses shall not restrict Tenant from using part or
      all
      of any designated office Building for laboratory and research and development
      purposes in accordance with Section 10.1 of the Building Lease for such
      Building, or from using significant portions of any designated lab Building
      for
      ancillary office purposes in accordance with Section 10.1 of the Building
      Lease for such Building, subject in each instance to 

     

    

    
      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    

    Landlord’s
      approval of the tenant improvements in the applicable Building to the extent
      provided in the applicable Building Lease and related Workletter); and
      (iv) up to six (6) Buildings in total can be designated as lab buildings,
      notwithstanding anything to the contrary in Section 1(b) of the
      Agreement:

    
      

      
        	 	
                Phase I:

              	 
	 	
                Building
                  5/6 (lab)

              	
                February
                  1, 2006 (180 days after Structural Completion)

              
	 	
                Building
                  4 (lab)

              	
                March
                  1, 2006 (180 days after Structural Completion)

              
	 	
                Building
                  1 (lab)

              	
                August
                  1, 2006 (300 days after Structural Completion)

              
	 	
                Building
                  3 (office)

              	
                November
                  1, 2006 (300 days after Structural Completion)

              
	 	 	 
	 	
                Phase II:

              	 
	 	
                Building
                  2 (office)

              	
                June
                  28, 2007 (180 days after Structural Completion)

              
	 	
                Building
                  7 (lab)

              	
                March
                  1, 2008 (180 days after Structural Completion

              
	 	
                Building
                  8 (lab)

              	
                May
                  1, 2008 (300 days after Structural Completion)

              
	 	
                Building
                  9 (lab)

              	
                July
                  1, 2008 (300 days after Structural
                  Completion)

              

      

      
        

        Landlord
          and Tenant have further agreed that the second sentence of Section 8.1 of
          each of the respective Building Leases (Phase I and Phase II) shall be
          deleted
          in its entirety and replaced as follows:

        

        Landlord
          and Tenant acknowledge that it would be unreasonable for Landlord to withhold
          consent to Alterations consisting of a conversion of up to one-half of
          any
          Building designated as office primary use to laboratory, research and/or
          development facilities; provided,
          however,
          that in all cases, Tenant shall obtain the advance written approval of
          Landlord
          to the extent such Alterations involve structural Alterations or require
          approval under the Site Management Plan or Environmental Deed Restrictions,
          which approval shall not be unreasonably withheld, conditioned or
          delayed.

         

      

    

    4.  Funding
      of Tenant Improvement Allowances.
      The Agreement contemplated, and the individual Building Leases and workletters
      executed prior to this First Amendment provided, that funding of the Tenant
      Improvement Allowance for each respective Building would be made on a “Baseline
      Payment Schedule” of four (4) equal monthly installments, beginning on the date
      Structural Completion is achieved, subject to Tenant’s right to accelerate
      funding of the Tenant Improvement Allowance under certain conditions specified
      in the workletters under the applicable Building Leases. Landlord and Tenant
      agree that with respect to each Building Lease under which disbursement of
      the
      Tenant Improvement Allowance has not already been completed as of the date
      of
      mutual execution of this First Amendment, the “Baseline Payment Schedule”
governing the disbursement of the Tenant Improvement Allowance with respect
      to
      such Building shall be deemed to be modified to provide for disbursement of
      such
      Tenant Improvement Allowance in four (4) equal monthly installments, beginning
      on the earlier to occur of (i) the date Structural Completion is achieved
      or (ii) the Rent Commencement Date under the applicable Building Lease, and
      continuing on the same day of each successive calendar month, still subject
      in
      each case to Tenant’s right to accelerate funding of the Tenant Improvement
      Allowance under the conditions already specified in the workletter under the
      applicable Building lease.

     

    

    
      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

    

    

    

     

    5.  Deed
      Restrictions.
      Subject to the terms of the Agreement, Landlord may record deed restrictions
      affecting the Center from time to time; provided, however, that during the
      Amenities Exclusivity Period, such deed restrictions shall be on a form approved
      by Tenant, which approval shall not be unreasonably withheld, conditioned or
      delayed. Tenant shall provide its approval or final comments to any request
      for
      approval within five (5) business days of a request from Landlord to provide
      its
      approval. Failure of Tenant to provide its approval or final comments to any
      request for approval within such five (5) business day period shall constitute
      and be deemed to be approval by Tenant.

     

    6. Brokers.
      Each party represents and warrants that no broker represented such party or
      otherwise participated in the negotiation or consummation of this First
      Amendment, and each party agrees to indemnify, defend and hold the other party
      harmless against any liability, cost or expense, including, without limitation,
      reasonable attorneys’ fees, arising out of any claims for brokerage commissions
      or other similar compensation in connection with any conversations, prior
      negotiations or other dealings by the indemnifying party with any
      broker.

     

    7. Notice.
      Confirming notices which have previously been sent by Tenant, the addresses
      for
      notices (and copies of notices) directed to Tenant under the Agreement and
      under
      any ancillary or related agreements have been modified by Tenant and are now
      as
      follows:

     

    
      
        	 	
                To
                  Tenant:

              	
                Lisa
                  Sullivan

                Genentech,
                  Inc.

                1
                  DNA Way, Mail Stop 256A

                South
                  San Francisco, CA 94080

                Fax:
                  (650) 467-3412

              
	 	 	 
	 	
                with
                  a copy to:

              	
                Corporate
                  Secretary

                Genentech,
                  Inc.

                1
                  DNA Way, Mail Stop 49

                South
                  San Francisco, CA 94080

                Fax:
                  (650) 467-9146

              
	 	 	 
	 	
                and
                  a copy to:

              	
                Meg
                  Fitzgerald, Esq.

                Genentech,
                  Inc. Legal Department

                1
                  DNA Way, Mail Stop 49

                South
                  San Francisco, CA 94080

                Fax:
                  (650) 952-9881

              

      

       

    

    8. Entire
      Agreement; Modification.
      This First Amendment constitutes the entire agreement between the parties
      relating to the subject matter hereof, and supersedes any and all prior
      agreements, promises, negotiations, letters of intent and representations
      between the parties with respect to such subject matter. This First Amendment
      may not be modified orally or in any manner other than by an agreement in
      writing signed by the parties hereto or their respective successors in
      interest.

     

    

    
      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

    

    

    

     

    9. Successors
      and Assigns.
      This First Amendment shall inure to the benefit of and be binding upon the
      parties hereto and their respective heirs, personal representatives, successors
      and assigns.

     

    10. Attorneys’
      Fees.
      In the event of any legal action or other proceeding arising out of this First
      Amendment, the party prevailing in such action or proceeding shall be entitled
      to recover its reasonable attorneys’ fees, expenses and costs of suit incurred
      in connection with such action or proceeding, including (but not limited to)
      any
      appellate proceedings relating thereto and any proceedings for the enforcement
      of any judgment entered in favor of such prevailing party in any such action
      or
      proceeding, from the non-prevailing party or parties.

     

    11. Section
      Headings.
      The headings contained in this First Amendment are for convenience only and
      shall in no way enlarge or limit the scope or meaning of the various Sections
      hereof.

     

    12. Gender
      and Number.
      Within this First Amendment, words of any gender shall be construed to include
      any other gender, words in the singular number shall be construed to include
      the
      plural and words in the plural number shall be construed to include the
      singular, unless the context otherwise requires.

     

    13. Applicable
      Law.
      This First Amendment and the rights and duties of the parties hereunder shall
      be
      governed for all purposes by the laws of the State of California and the laws
      of
      the United States applicable to transactions within such state.

     

    14. Time
      of the Essence.
      Time is of the essence of this First Amendment, and of the exercise of each
      of
      the rights and performance of each of the obligations set forth
      herein.

     

    15. Further
      Assurances.
      The parties agree to execute any further documents that are reasonable and
      appropriate to carry out the purposes of this First Amendment in accordance
      with
      its terms.

     

    16. Publicity;
      Authorized Disclosure.
      Neither party will make any press release or other public disclosure regarding
      this First Amendment or the transactions contemplated hereby without the other
      party's express prior written consent, except as required under applicable
      law
      or by any governmental agency. Without limiting the generality of the foregoing,
      each party agrees that the other party will have no less than five (5) business
      days to review and provide comment regarding any such proposed press release
      or
      publicity, unless a shorter review time is agreed to by both parties. In the
      event that one party reasonably concludes that a given disclosure is required
      by
      law and the other party would prefer not to make such disclosure, then the
      party
      seeking such disclosure shall either (i) limit said disclosure to address
      the concerns of the other party, or (ii) provide a written opinion from
      counsel stating that such disclosure is indeed required by law. With respect
      to
      complying with the disclosure requirements of the SEC or other securities
      regulatory bodies in other nations, in connection with any required securities
      filing of this First Amendment, the filing party shall seek confidential
      treatment of this First Amendment to the maximum extent permitted by such
      regulatory body and shall provide the other party with the opportunity, for
      at
      least fifteen (15) days, to review any such proposed filing. Each party agrees
      that it will obtain its own legal advice with regard to its compliance with
      securities laws 

     

    

    
      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

    

    

    and
      regulations, and will not rely on any statements made by the other party
      relating to such securities laws and regulations.

     

    17. Controlling
      Provisions.
      Except as modified by the terms of this First Amendment, the parties’
obligations under the Agreement and the provisions of the Agreement shall remain
      unchanged, in full force and effect, and enforceable in accordance with their
      respective terms. In the event of any conflict or ambiguity between the
      Agreement and this First Amendment, this First Amendment shall govern and
      control in all respects. The terms of this First Amendment apply to all of
      the
      Building Leases, whether executed prior to, contemporaneously with, or
      subsequent to the execution of this First Amendment. In the event of any
      conflict between this First Amendment and any of the Building Leases, whether
      executed prior to, contemporaneously with, or subsequent to the execution of
      this First Amendment (unless such subsequent Building Lease expressly states
      that it governs and controls with specific reference to this First Amendment),
      this First Amendment shall govern and control in all respects and the provisions
      of the applicable Building Lease(s) affected by such conflict shall be deemed
      to
      be amended accordingly.

     

    18. Remedies
      Cumulative.
      All rights, privileges and elections or remedies of Landlord or Tenant contained
      in this First Amendment are cumulative and not alternative to the extent
      permitted by law and except as otherwise provided herein.

     

    19. Counterparts.
      This First Amendment may be executed in multiple counterparts, and by the
      respective parties hereto in separate counterparts, each of which when so
      executed and delivered shall be deemed to be one and the same instrument with
      the same signatures as if all parties to this First Amendment had signed the
      same signature page. Signature pages may be detached from separate counterparts
      and attached to a single copy of this First Amendment to form one original
      document (or multiple original counterparts of this document with full
      signatures).

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this First Amendment as of
      the
      date first set forth above.

     

    
      	
              “Landlord”

            	 	
              “Tenant”

            
	 	 	 
	
              SLOUGH
                SSF, LLC, a Delaware limited liability company

            	 	
              GENENTECH,
                INC., a Delaware corporation

            
	 	 	 	 	 
	
              By:

            	
              Slough
                Estates USA Inc., a Delaware 

              corporation,
                Its Manager

            	 	
              By:

            	
              /s/  STEPHEN
                G. JUELSGAARD

            
	 	 	 	
              Name:

            	
              Stephen
                G. Juelsgaard

            
	
              By:

            	
              /s/  JONATHAN
                M. BERGSCHNEIDER

            	 	
              Its:

            	
              Executive
                Vice President,

              General
                Counsel & Secretary

            
	
              Name:

            	
              Jonathan
                M. Bergschneider

            	 	 	 
	
              Its:

            	
              Senior
                Vice President

            	 	
              By:

            	
              /s/  DAVID
                A. EBERSMAN

            
	 	 	 	
              Name:

            	
              David
                A. Ebersman

            
	 	 	 	
              Its:

            	
              Executive
                Vice President, and

              Chief
                Financial Officer

            

    

    

     

    
      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

    

    

    EXHIBITS

    

    

    EXHIBIT
      B  Phase
      II Construction Schedules (Buildings 7, 8 & 9)

    

    EXHIBIT
      C-1  Phase
      I Master Rent Schedule (Revised)

    

    EXHIBIT
      C-2  Phase
      II Master Rent Schedule (Revised)

    

    

    

    EXHIBIT
      LIST - PAGE 1

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      B

     

    

    REVISED
      PHASE II CONSTRUCTION SCHEDULES

    (BUILDINGS
      7, 8 & 9)

    

    

    

    [See
      attached three schedules:

    two
      pages for Building 7 and one page each for Buildings 8 &
9.]

    

    

    

    EXHIBIT
      B TO FIRST AMENDMENT TO MASTER LEASE AGREEMENT

    REVISED
      PHASE II CONSTRUCTION SCHEDULES, PAGE 1

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

       

      EXHIBIT
        C-1

      

      PHASE
        I MASTER RENT SCHEDULE (REVISED)

      
 

      
        
          	
                  PHASE
                    I BUILDING

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
                  Building
                    5/6

                	 	
                  Building
                    1

                
	
                  Rentable
                    Area:

                  Rent
                    Commencement Date:

                  Original
                    MLA Rent Schedule:

                	
                  151,874
                    RSF

                  1-Feb-06

                  Schedule
                    C-1

                	 	
                  107,733
                    RSF

                  1-Aug-06

                  Schedule
                    C-1

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Lease

                	 	 	 	
                  Initial
                    Base

                  Rent

                	
                  Additional
                    Rent

                	
                  Total
                    Base Rent

                	 	
                  Initial
                    Base

                  Rent

                	
                  Additional
                    Rent

                	
                  Total
                    Base Rent

                
	
                  Year

                	
                  Months

                	
                  (psf/pm)

                	
                  (CGL)

                	
                  (Seismic)

                	
                  (psf/pm)

                	
                  (pm)

                	 	
                  (psf/pm)

                	
                  (CGL)

                	
                  (Seismic)

                	
                  (psf/pm)

                	
                  (pm)

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  1

                	
                  1

                	
                  -

                	
                  12

                	
                  $2.500

                	
                  $0.050

                	
                  $0.070

                	
                  $2.620

                	
                  $397,910

                	 	
                  $2.500

                	
                  $0.050

                	
                  $0.070

                	
                  $2.620

                	
                  $282,260

                
	
                  2

                	
                  13

                	
                  -

                	
                  24

                	
                  $3.000

                	
                  $0.050

                	
                  $0.072

                	
                  $3.122

                	
                  $474,219

                	 	
                  $3.000

                	
                  $0.050

                	
                  $0.072

                	
                  $3.122

                	
                  $336,391

                
	
                  3

                	
                  25

                	
                  -

                	
                  36

                	
                  $3.400

                	
                  $0.050

                	
                  $0.075

                	
                  $3.525

                	
                  $535,364

                	 	
                  $3.400

                	
                  $0.050

                	
                  $0.075

                	
                  $3.525

                	
                  $379,757

                
	
                  4

                	
                  37

                	
                  -

                	
                  48

                	
                  $3.519

                	
                  $0.050

                	
                  $0.078

                	
                  $3.647

                	
                  $553,825

                	 	
                  $3.519

                	
                  $0.050

                	
                  $0.078

                	
                  $3.647

                	
                  $392,580

                
	
                  5

                	
                  49

                	
                  -

                	
                  60

                	
                  $3.642

                	
                  $0.050

                	
                  $0.080

                	
                  $3.772

                	
                  $572,943

                	 	
                  $3.642

                	
                  $0.050

                	
                  $0.080

                	
                  $3.772

                	
                  $406,422

                
	
                  6

                	
                  61

                	
                  -

                	
                  72

                	
                  $3.770

                	
                  $0.050

                	
                  $0.083

                	
                  $3.903

                	
                  $592,731

                	 	
                  $3.770

                	
                  $0.050

                	
                  $0.083

                	
                  $3.903

                	
                  $420,458

                
	
                  7

                	
                  73

                	
                  -

                	
                  84

                	
                  $3.902

                	
                  $0.050

                	
                  $0.086

                	
                  $4.038

                	
                  $613,210

                	 	
                  $3.902

                	
                  $0.050

                	
                  $0.086

                	
                  $4.038

                	
                  $434,986

                
	
                  8

                	
                  85

                	
                  -

                	
                  96

                	
                  $4.038

                	
                  $0.050

                	
                  $0.089

                	
                  $4.177

                	
                  $634,407

                	 	
                  $4.038

                	
                  $0.050

                	
                  $0.089

                	
                  $4.177

                	
                  $450,022

                
	
                  9

                	
                  97

                	
                  -

                	
                  108

                	
                  $4.179

                	
                  $0.050

                	
                  $0.092

                	
                  $4.322

                	
                  $656,345

                	 	
                  $4.179

                	
                  $0.050

                	
                  $0.092

                	
                  $4.322

                	
                  $465,584

                
	
                  10

                	
                  109

                	
                  -

                	
                  120

                	
                  $4.326

                	
                  $0.050

                	
                  $0.095

                	
                  $4.471

                	
                  $679,052

                	 	
                  $4.326

                	
                  $0.050

                	
                  $0.095

                	
                  $4.471

                	
                  $481,691

                
	
                  11

                	
                  121

                	
                  -

                	
                  132

                	
                  $4.477

                	
                  $0.050

                	
                  $0.099

                	
                  $4.626

                	
                  $702,553

                	 	
                  $4.477

                	
                  $0.050

                	
                  $0.099

                	
                  $4.626

                	
                  $498,381

                
	
                  12

                	
                  133

                	
                  -

                	
                  144

                	
                  $4.634

                	
                  $0.050

                	
                  $0.102

                	
                  $4.766

                	
                  $726,876

                	 	
                  $4.634

                	
                  $0.050

                	
                  $0.102

                	
                  $4.786

                	
                  $515,615

                
	
                  13

                	
                  145

                	
                  -

                	
                  156

                	
                  $4.795

                	
                  $0.050

                	
                  $0.106

                	
                  $4.952

                	
                  $752,051

                	 	
                  $4.796

                	
                  $0.050

                	
                  $0.106

                	
                  $4.952

                	
                  $533,473

                
	
                  14

                	
                  157

                	
                  -

                	
                  168

                	
                  $4.964

                	
                  $0.050

                	
                  $0.109

                	
                  $5.123

                	
                  $778,107

                	 	
                  $4.964

                	
                  $0.050

                	
                  $0.109

                	
                  $5.123

                	
                  $551,956

                
	
                  15

                	
                  169

                	
                  -

                	
                  180

                	
                  $5.138

                	
                  $0.050

                	
                  $0.113

                	
                  $5.301

                	
                  $805,075

                	 	
                  $5.138

                	
                  $0.050

                	
                  $0.113

                	
                  $5.301

                	
                  $571,086

                
	
                  16

                	
                  181

                	
                  -

                	
                  192

                	
                  $5.317

                	
                  $0.050

                	
                  $0.117

                	
                  $5.465

                	
                  $832,967

                	 	
                  $5.317

                	
                  $0.050

                	
                  $0.117

                	
                  $5.485

                	
                  $590,886

                
	
                  17

                	
                  193

                	
                  -

                	
                  204

                	
                  $5.504

                	
                  $0.050

                	
                  $0.121

                	
                  $5.675

                	
                  $861,876

                	 	
                  $5.504

                	
                  $0.050

                	
                  $0.121

                	
                  $5.675

                	
                  $611,378

                
	
                  18

                	
                  205

                	
                  -

                	
                  216

                	
                  $5.696

                	
                  $0.050

                	
                  $0.128

                	
                  $5.872

                	
                  $891,776

                	 	
                  $5.596

                	
                  $0.050

                	
                  $0.126

                	
                  $5.872

                	
                  $632,586

                
	
                  19

                	
                  217

                	
                  -

                	
                  228

                	
                  $5.896

                	
                  $0.050

                	
                  $0.130

                	
                  $6.076

                	
                  $922,722

                	 	
                  $5.896

                	
                  $0.050

                	
                  $0.130

                	
                  $6.078

                	
                  $654,540

                
	
                  20

                	
                  229

                	
                  -

                	
                  240

                	
                  $6.102

                	
                  $0.050

                	
                  $0.135

                	
                  $6.286

                	
                  $954,752

                	 	
                  $6.102

                	
                  $0.050

                	
                  $0.135

                	
                  $6.286

                	
                  $677,260

                

        

        

        
          	 	 	 	 	
                  Building
                    4

                	 	
                  Building
                    3

                
	
                  Rentable
                    Area:

                  Rent
                    Commencement Date:

                  Original
                    MLA Rent Schedule:

                	
                  78,200
                    RSF

                  1-Mar-06

                  Schedule
                    C-1

                	 	
                  118,981
                    RSF

                  1-Nov-05
                    (TBD)

                  Schedule
                    C-1

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Lease

                	 	 	 	
                  Initial
                    Base
                    Rent

                	
                  Additional
                    Rent

                	
                  Total
                    Base Rent

                	 	
                  Initial
                    Base Rent

                	
                  Additional
                    Rent

                	
                  Total
                    Base Rent

                
	
                  Year

                	
                  Months

                	
                  (psf/pm)

                	
                  (CGL)

                	
                  (Seismic)

                	
                  (psf/pm)

                	
                  (pm)

                	 	
                  (psf/pm)

                	
                  (CGL)

                	
                  (Seismic)

                	
                  (psf/pm)

                	
                  (pm)

                
	
                  1

                	
                  1

                	
                  -

                	
                  12

                	
                  $3.000

                	
                  $0.050

                	
                  $0.070

                	
                  $3.120

                	
                  $243,984

                	 	
                  $3.000

                	
                  $0.050

                	
                  $0.070

                	
                  $3.120

                	
                  $371,221

                
	
                  2

                	
                  13

                	
                  -

                	
                  24

                	
                  $3.105

                	
                  $0.050

                	
                  $0.072

                	
                  $3.227

                	
                  $252,387

                	 	
                  $3.105

                	
                  $0.050

                	
                  $0.072

                	
                  $3.227

                	
                  $384,005

                
	
                  3

                	
                  25

                	
                  -

                	
                  36

                	
                  $3.400

                	
                  $0.050

                	
                  $0.075

                	
                  $3.525

                	
                  $275,654

                	 	
                  $3.400

                	
                  $0.050

                	
                  $0.075

                	
                  $3.525

                	
                  $419,408

                
	
                  4

                	
                  37

                	
                  -

                	
                  48

                	
                  $3.519

                	
                  $0.050

                	
                  $0.078

                	
                  $3.647

                	
                  $285,165

                	 	
                  $3.519

                	
                  $0.050

                	
                  $0.078

                	
                  $3.647

                	
                  $433,877

                
	
                  5

                	
                  49

                	
                  -

                	
                  60

                	
                  $3.642

                	
                  $0.050

                	
                  $0.080

                	
                  $3.772

                	
                  $295,009

                	 	
                  $3.642

                	
                  $0.050

                	
                  $0.080

                	
                  $3.772

                	
                  $448,855

                
	
                  6

                	
                  61

                	
                  -

                	
                  72

                	
                  $3.770

                	
                  $0.050

                	
                  $0.083

                	
                  $3.903

                	
                  $305,197

                	 	
                  $3.770

                	
                  $0.050

                	
                  $0.083

                	
                  $3.903

                	
                  $464,357

                
	
                  7

                	
                  73

                	
                  -

                	
                  84

                	
                  $3.902

                	
                  $0.050

                	
                  $0.088

                	
                  $4.038

                	
                  $315,742

                	 	
                  $3.902

                	
                  $0.050

                	
                  $0.088

                	
                  $4.038

                	
                  $480,401

                
	
                  8

                	
                  85

                	
                  -

                	
                  96

                	
                  $4.038

                	
                  $0.050

                	
                  $0.089

                	
                  $4.177

                	
                  $326,658

                	 	
                  $4.038

                	
                  $0.050

                	
                  $0.089

                	
                  $4.177

                	
                  $497,007

                
	
                  9

                	
                  97

                	
                  -

                	
                  108

                	
                  $4.179

                	
                  $0.050

                	
                  $0.092

                	
                  $4.322

                	
                  $337,953

                	 	
                  $4.179

                	
                  $0.050

                	
                  $0.092

                	
                  $4.322

                	
                  $514,194

                
	
                  10

                	
                  109

                	
                  -

                	
                  120

                	
                  $4.326

                	
                  $0.050

                	
                  $0.095

                	
                  $4.471

                	
                  $349,644

                	 	
                  $4.326

                	
                  $0.050

                	
                  $0.095

                	
                  $4.471

                	
                  $531,982

                
	
                  11

                	
                  121

                	
                  -

                	
                  132

                	
                  $4.477

                	
                  $0.050

                	
                  $0.099

                	
                  $4.626

                	
                  $361,745

                	 	
                  $4.477

                	
                  $0.050

                	
                  $0.099

                	
                  $4.626

                	
                  $550,393

                
	
                  12

                	
                  133

                	
                  -

                	
                  144

                	
                  $4.634

                	
                  $0.050

                	
                  $0.102

                	
                  $4.786

                	
                  $374,269

                	 	
                  $4.634

                	
                  $0.050

                	
                  $0.102

                	
                  $4.786

                	
                  $589,449

                
	
                  13

                	
                  145

                	
                  -

                	
                  156

                	
                  $4.796

                	
                  $0.050

                	
                  $0.106

                	
                  $4.952

                	
                  $387,232

                	 	
                  $4.796

                	
                  $0.050

                	
                  $0.106

                	
                  $4.952

                	
                  $589,171

                
	
                  14

                	
                  157

                	
                  -

                	
                  168

                	
                  $4.964

                	
                  $0.050

                	
                  $0.109

                	
                  $5.123

                	
                  $400,648

                	 	
                  $4.964

                	
                  $0.050

                	
                  $0.109

                	
                  $5.123

                	
                  $609,584

                
	
                  15

                	
                  169

                	
                  -

                	
                  180

                	
                  $5.138

                	
                  $0.050

                	
                  $0.113

                	
                  $5.301

                	
                  $414,534

                	 	
                  $5.138

                	
                  $0.050

                	
                  $0.113

                	
                  $5.301

                	
                  $630,711

                
	
                  16

                	
                  181

                	
                  -

                	
                  192

                	
                  $5.317

                	
                  $0.050

                	
                  $0.117

                	
                  $5.465

                	
                  $428,905

                	 	
                  $5.317

                	
                  $0.050

                	
                  $0.117

                	
                  $5.485

                	
                  $652,578

                
	
                  17

                	
                  193

                	
                  -

                	
                  204

                	
                  $5.504

                	
                  $0.050

                	
                  $0.121

                	
                  $5.675

                	
                  $443,780

                	 	
                  $5.504

                	
                  $0.050

                	
                  $0.121

                	
                  $5.675

                	
                  $675,210

                
	
                  18

                	
                  205

                	
                  -

                	
                  216

                	
                  $5.696

                	
                  $0.050

                	
                  $0.126

                	
                  $5.872

                	
                  $459,176

                	 	
                  $5.696

                	
                  $0.050

                	
                  $0.126

                	
                  $5.872

                	
                  $698,634

                
	
                  19

                	
                  217

                	
                  -

                	
                  228

                	
                  $5.896

                	
                  $0.050

                	
                  $0.130

                	
                  $6.076

                	
                  $475,110

                	 	
                  $5.896

                	
                  $0.050

                	
                  $0.130

                	
                  $6.076

                	
                  $722,878

                
	
                  20

                	
                  229

                	
                  -

                	
                  240

                	
                  $6.102

                	
                  $0.050

                	
                  $0.135

                	
                  $6.286

                	
                  $491,602

                	 	
                  $6.102

                	
                  $0.050

                	
                  $0.135

                	
                  $6.286

                	
                  $747,971

                

        

         

      

      

      EXHIBIT
        C-1 TO FIRST AMENDMENT TO MASTER LEASE AGREEMENT

      PHASE
        I
        MASTER RENT SCHEDULE (REVISED), PAGE 1

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        C-2
 

      PHASE
        II MASTER RENT SCHEDULE (REVISED)

    

     

    
      

      
        	
                PHASE
                  11 BUILDINGS

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
                Building
                  2

              	 	
                Building
                  7

              
	
                Rentable
                  Area:

                Rent
                  Commencement Date:

                Original
                  MLA Rent Schedule:

              	
                106,000
                  RSF

                24-Jun-07
                  (TBD)

                Schedule
                  C-5

              	 	
                92,000
                  RSF

                1-Mar-08
                  (TBD)

                Schedule
                  C-2

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease

              	 	 	 	
                Initial
                  Base
                  Rent

              	
                Additional
                  Rent

              	
                Total
                  Base Rent

              	 	
                Initial
                  Base
                  Rent

              	
                Additional
                  Rent

              	
                Total
                  Base Rent

              
	
                Year

              	
                Months

              	
                (psf/pm)

              	
                (CGL)

              	
                (Seismic)

              	
                (psf/pm)

              	
                (pm)

              	 	
                (psf/pm)

              	
                (CGL)

              	
                (Seismic)

              	
                (ps/pm)

              	
                (pm)

              
	
                1

              	
                1

              	
                -

              	
                12

              	
                $3.631

              	
                $0.050

              	
                $0.072

              	
                $3.754

              	
                $397,897

              	 	
                $3.763

              	
                $0.050

              	
                $0.075

              	
                $3.886

              	
                $357,685

              
	
                2

              	
                13

              	
                -

              	
                24

              	
                $3.758

              	
                $0.050

              	
                $0.075

              	
                $3.883

              	
                $411,838

              	 	
                $3.895

              	
                $0.050

              	
                $0.078

              	
                $4.022

              	
                $370,053

              
	
                3

              	
                25

              	
                -

              	
                36

              	
                $3.890

              	
                $0.050

              	
                $0.078

              	
                $4.016

              	
                $425,860

              	 	
                $4.031

              	
                $0.050

              	
                $0.080

              	
                $4.161

              	
                $382,544

              
	
                4

              	
                37

              	
                -

              	
                48

              	
                $4.026

              	
                $0.050

              	
                $0.080

              	
                $4.158

              	
                $440,579

              	 	
                $4.172

              	
                $0.050

              	
                $0.083

              	
                $4.305

              	
                $396,082

              
	
                5

              	
                49

              	
                -

              	
                60

              	
                $4.167

              	
                $0.050

              	
                $0.085

              	
                $4.300

              	
                $455,814

              	 	
                $4.318

              	
                $0.050

              	
                $0.086

              	
                $4.454

              	
                $409,784

              
	
                6

              	
                61

              	
                -

              	
                72

              	
                $4.313

              	
                $0.050

              	
                $0.086

              	
                $4.449

              	
                $471,582

              	 	
                $4.460

              	
                $0.050

              	
                $0.089

              	
                $4.806

              	
                $423,988

              
	
                7

              	
                73

              	
                -

              	
                84

              	
                $4.454

              	
                $0.050

              	
                $0.089

              	
                $4.603

              	
                $487,902

              	 	
                $4.628

              	
                $0.050

              	
                $0.092

              	
                $4.788

              	
                $438,644

              
	
                8

              	
                85

              	
                -

              	
                96

              	
                $4.620

              	
                $0.050

              	
                $0.092

              	
                $4.762

              	
                $504,793

              	 	
                $4.788

              	
                $0.050

              	
                $0.095

              	
                $4.933

              	
                $453,835

              
	
                9

              	
                97

              	
                -

              	
                108

              	
                $4.782

              	
                $0.050

              	
                $0.095

              	
                $4.927

              	
                $522,275

              	 	
                $4.955

              	
                $0.050

              	
                $0.099

              	
                $5.104

              	
                $459,558

              
	
                10

              	
                109

              	
                -

              	
                120

              	
                $4.949

              	
                $0.050

              	
                $0.099

              	
                $5.096

              	
                $540,369

              	 	
                $5.129

              	
                $0.050

              	
                $0.102

              	
                $5.281

              	
                $485,832

              
	
                11

              	
                121

              	
                -

              	
                132

              	
                $5.122

              	
                $0.050

              	
                $0.102

              	
                $5.274

              	
                $559,097

              	 	
                $5.306

              	
                $0.050

              	
                $0.106

              	
                $5.464

              	
                $502,675

              
	
                12

              	
                133

              	
                -

              	
                144

              	
                $5.302

              	
                $0.050

              	
                $0.106

              	
                $5.457

              	
                $578,480

              	 	
                $5.494

              	
                $0.050

              	
                $0.109

              	
                $5.653

              	
                $520,108

              
	
                13

              	
                145

              	
                -

              	
                156

              	
                $5.487

              	
                $0.050

              	
                $0.109

              	
                $5.647

              	
                $598,541

              	 	
                $5.686

              	
                $0.050

              	
                $0.113

              	
                $5.849

              	
                $538,150

              
	
                14

              	
                157

              	
                -

              	
                168

              	
                $5.679

              	
                $0.050

              	
                $0.113

              	
                $5.842

              	
                $619,304

              	 	
                $5.885

              	
                $0.050

              	
                $0.117

              	
                $6.052

              	
                $556,825

              
	
                15

              	
                169

              	
                -

              	
                180

              	
                $5.878

              	
                $0.050

              	
                $0.117

              	
                $6.045

              	
                $640,795

              	 	
                $6.091

              	
                $0.050

              	
                $0.121

              	
                $6.263

              	
                $576,152

              
	
                16

              	
                181

              	
                -

              	
                192

              	
                $6.084

              	
                $0.050

              	
                $0.121

              	
                $6.255

              	
                $653,037

              	 	
                $6.304

              	
                $0.050

              	
                $0.126

              	
                $6.480

              	
                $595,157

              
	
                17

              	
                193

              	
                -

              	
                204

              	
                $6.297

              	
                $0.050

              	
                $0.128

              	
                $6.472

              	
                $686,058

              	 	
                $6.525

              	
                $0.050

              	
                $0.130

              	
                $6.705

              	
                $616,861

              
	
                18

              	
                205

              	
                -

              	
                216

              	
                $6.517

              	
                $0.050

              	
                $0.130

              	
                $6.697

              	
                $709,884

              	 	
                $6.753

              	
                $0.050

              	
                $0.135

              	
                $6.938

              	
                $638,290

              
	
                19

              	
                217

              	
                -

              	
                228

              	
                $6.745

              	
                $0.050

              	
                $0.135

              	
                $6.930

              	
                $734,545

              	 	
                $6.990

              	
                $0.050

              	
                $0.139

              	
                $7.179

              	
                $660,470

              
	
                20

              	
                229

              	
                -

              	
                240

              	
                $6.981

              	
                $0.050

              	
                $0.139

              	
                $7.170

              	
                $760,068

              	 	
                $7.234

              	
                $0.050

              	
                $0.144

              	
                $7.429

              	
                $683,425

              

      

      

      

      
        	 	 	 	 	
                Building
                  8

              	 	
                Building
                  9

              
	
                Rentable
                  Area:

                Rent
                  Commencement Date:

                Original
                  MLA Rent Schedule:

              	
                82,000
                  RSF

                1-May-08
                  (TBD)

                Schedule
                  C-2

              	 	
                54,000
                  RSF

                1-Jul-08
                  (TBD)

                Schedule
                  C-2

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease

              	 	 	 	
                Initial
                  Base
                  Rent

              	
                Additional
                  Rent

              	
                Total
                  Base Rent

              	 	
                Initial
                  Base
                  Rent

              	
                Additional
                  Rent

              	
                Total
                  Base Rent

              
	
                Year

              	
                Months

              	
                (psf/pm)

              	
                (CGL)

              	
                (Seismic)

              	
                (psf/pm)

              	
                (pm)

              	 	
                (psf/pm)

              	
                (CGL)

              	
                (Seismic)

              	
                (psf/pm)

              	
                (pm)

              
	
                1

              	
                1

              	
                -

              	
                12

              	
                $3.763

              	
                $0.050

              	
                $0.075

              	
                $3.888

              	
                $318,315

              	 	
                $3.763

              	
                $0.050

              	
                $0.075

              	
                $3.888

              	
                $209,951

              
	
                2

              	
                13

              	
                -

              	
                24

              	
                $3.895

              	
                $0.050

              	
                $0.078

              	
                $4.022

              	
                $329,830

              	 	
                $3.895

              	
                $0.050

              	
                $0.078

              	
                $4.022

              	
                $217,205

              
	
                3

              	
                25

              	
                -

              	
                36

              	
                $4.031

              	
                $0.050

              	
                $0.080

              	
                $4.151

              	
                $341,230

              	 	
                $4.031

              	
                $0.050

              	
                $0.080

              	
                $4.161

              	
                $224,713

              
	
                4

              	
                37

              	
                -

              	
                48

              	
                $4.172

              	
                $0.050

              	
                $0.083

              	
                $4.305

              	
                $353,030

              	 	
                $4.172

              	
                $0.050

              	
                $0.083

              	
                $4.305

              	
                $232,483

              
	
                5

              	
                49

              	
                -

              	
                60

              	
                $4.318

              	
                $0.050

              	
                $0.088

              	
                $4.454

              	
                $385,243

              	 	
                $4.318

              	
                $0.050

              	
                $0.086

              	
                $4.454

              	
                $240,526

              
	
                6

              	
                61

              	
                -

              	
                72

              	
                $4.469

              	
                $0.050

              	
                $0.089

              	
                $4.608

              	
                $377,882

              	 	
                $4.469

              	
                $0.050

              	
                $0.089

              	
                $4.608

              	
                $248,849

              
	
                7

              	
                73

              	
                -

              	
                84

              	
                $4.626

              	
                $0.050

              	
                $0.092

              	
                $4.768

              	
                $390,965

              	 	
                $4.626

              	
                $0.050

              	
                $0.092

              	
                $4.788

              	
                $257,465

              
	
                8

              	
                85

              	
                -

              	
                96

              	
                $4.788

              	
                $0.050

              	
                $0.095

              	
                $4.933

              	
                $404,505

              	 	
                $4.788

              	
                $0.050

              	
                $0.095

              	
                $4.933

              	
                $268,381

              
	
                9

              	
                97

              	
                -

              	
                108

              	
                $4.955

              	
                $0.050

              	
                $0.099

              	
                $5.104

              	
                $418,519

              	 	
                $4.955

              	
                $0.050

              	
                $0.099

              	
                $5.104

              	
                $275,610

              
	
                10

              	
                109

              	
                -

              	
                120

              	
                $5.129

              	
                $0.050

              	
                $0.102

              	
                $5.281

              	
                $433,024

              	 	
                $5.129

              	
                $0.050

              	
                $0.102

              	
                $5.281

              	
                $285,162

              
	
                11

              	
                121

              	
                -

              	
                132

              	
                $5.308

              	
                $0.050

              	
                $0.105

              	
                $5.464

              	
                $448,036

              	 	
                $5.308

              	
                $0.050

              	
                $0.108

              	
                $5.464

              	
                $295,048

              
	
                12

              	
                133

              	
                -

              	
                144

              	
                $5.494

              	
                $0.050

              	
                $0.109

              	
                $5.853

              	
                $483,574

              	 	
                $5.494

              	
                $0.050

              	
                $0.109

              	
                $5.653

              	
                $305,281

              
	
                13

              	
                145

              	
                -

              	
                156

              	
                $5.686

              	
                $0.050

              	
                $0.113

              	
                $5.849

              	
                $479,656

              	 	
                $5.686

              	
                $0.050

              	
                $0.113

              	
                $5.849

              	
                $315,871

              
	
                14

              	
                157

              	
                -

              	
                168

              	
                $5.885

              	
                $0.050

              	
                $0.117

              	
                $6.052

              	
                $496,300

              	 	
                $5.885

              	
                $0.050

              	
                $0.117

              	
                $6.052

              	
                $328,832

              
	
                15

              	
                169

              	
                -

              	
                180

              	
                $6.091

              	
                $0.050

              	
                $0.121

              	
                $6.283

              	
                $513,527

              	 	
                $6.091

              	
                $0.050

              	
                $0.121

              	
                $6.263

              	
                $338,176

              
	
                16

              	
                181

              	
                -

              	
                192

              	
                $6.304

              	
                $0.050

              	
                $0.126

              	
                $6.480

              	
                $531,357

              	 	
                $6.304

              	
                $0.050

              	
                $0.126

              	
                $6.480

              	
                $349,918

              
	
                17

              	
                193

              	
                -

              	
                204

              	
                $6.525

              	
                $0.050

              	
                $0.130

              	
                $6.705

              	
                $549,811

              	 	
                $6.526

              	
                $0.050

              	
                $0.130

              	
                $6.705

              	
                $362,071

              
	
                18

              	
                205

              	
                -

              	
                216

              	
                $6.753

              	
                $0.050

              	
                $0.135

              	
                $6.938

              	
                $568,911

              	 	
                $6.753

              	
                $0.050

              	
                $0.136

              	
                $6.938

              	
                $374,649

              
	
                19

              	
                217

              	
                -

              	
                228

              	
                $6.990

              	
                $0.050

              	
                $0.139

              	
                $7.179

              	
                $588,679

              	 	
                $6.990

              	
                $0.050

              	
                $0.139

              	
                $7.179

              	
                $387,687

              
	
                20

              	
                229

              	
                -

              	
                240

              	
                $7.234

              	
                $0.050

              	
                $0.144

              	
                $7.429

              	
                $609,140

              	 	
                $7.234

              	
                $0.050

              	
                $0.144

              	
                $7.429

              	
                $401,141

              

      

      
 

    

    
      EXHIBIT
        C-2 TO FIRST AMENDEMENT TO MASTER LEASE AGREEMENT

      PHASE
        II
        MASTER RENT SCHEDULE (REVISED), PAGE 1Second Amendment to the Manufacturing and Supply Agreement between Genentech
      and Lonza Biologics PLC, effective as of 19 May 2006

    
      

    

    EXHIBIT
      10.32

    
 

    SECOND
      AMENDMENT

     

    TO
      THE

     

    MANUFACTURING
      AND SUPPLY AGREEMENT OF DECEMBER 7 2003

     

    THIS
      SECOND AMENDMENT TO THE MANUFACTURING AND SUPPLY AGREEMENT DATED DECEMBER 7
      2003
      ("2nd Amendment")
      is made effective as of 19 May 2006 (the “2nd
      Amendment Effective Date”),
      by and between Lonza Biologics PLC, having its principal place of business
      at
      228 Bath Road, Slough, Berkshire SL1 4DX, England ("LB"),
      Lonza Biologics, Inc. having its principal place of business at 101
      International Drive Portsmouth, New Hampshire 03801 ("Lonza
      Inc")
      (collectively LB and Lonza Inc, hereinafter "Lonza"),
      and Genentech, Inc., a Delaware corporation, having its principal place of
      business at One DNA Way, South San Francisco, California 94080 ("Genentech").

     

    BACKGROUND

     

    The
      Parties have executed that certain Manufacturing and Supply Agreement by and
      between the Parties dated December 7, 2003, as amended 14 March 2005 (the
“1st
      Amendment”),
      (collectively, the “Agreement”)
      and wish now to further amend said Agreement.

     

    Lonza
      and Genentech desire to modify the Lonza Facility to [*],
      and in conjunction therewith, Lonza agrees to grant Genentech an option to
      implement such modification in accordance with the terms of this 2nd
      Amendment.

     

    Lonza
      and Genentech also desire to amend the Purchase Price to be paid by Genentech
      for certain Batches of Product produced by Lonza, provide a means to estimate
      and true-up invoicing of the Purchase Price for Batches, amend the milestone
      payments to be paid by Genentech upon Lonza achievement of certain milestones,
      re-schedule certain Campaigns to be conducted by Lonza, provide for an
      alternative means of invoicing for Batches resulting from a Project, and amend
      the Manufacturing Process.

     

    NOW,
      THEREFORE, IN CONSIDERATION OF the mutual covenants set forth in this Agreement,
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the Parties hereby agree as follows:

     

    
      	
              1.

            	
              [*].
                Lonza hereby grants to Genentech an option to require Lonza to implement
                a
                project [*]
                (as further described in Exhibit
                1
                attached hereto, the “[*]”).
                Genentech may exercise such option by providing written notice to
                Lonza at
                any time during the Term. Upon Genentech’s exercise of such option, Lonza
                shall use its Commercially Reasonable Best Efforts to initiate and
                complete the [*]
                Project in accordance with the requirements, costs and timelines
                set forth
                in Exhibit 1.

            

    

     

    
      	
              2.

            	
              Adjustment
                to Purchase Price for Successful Commercial Batches.
                Section 6.4.3 of the Agreement is amended to add a new subsection
                (e) as
                follows:

            

    

     

    (e) Notwithstanding
      Section 6.4.3(a) above, commencing
      with the first Successful Commercial Batch resulting from a Commercial Run
      that
      entered the [*]
      at the Lonza Facility in the [*]
      Campaign,
      and continuing thereafter for the remainder of the Term, for
      each such Successful Commercial Batch (up to the Campaign Maximum in a
      particular 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Campaign)
      manufactured after commencement of the [*]
      Campaign in compliance with this Agreement and in conformance with cGMP and
      the
      Bulk Drug Specifications, the Target Yield, and the warranties provided in
      Section 7.1 hereof, Genentech shall pay Lonza an amount as set forth below.
      Such amount shall be the Purchase Price for such Successful Commercial
      Batches.

     

    (i) If
      the Yield for such Successful Commercial Batch is [*],
      Genentech shall pay Lonza an amount for such Batch equal to [*];

     

    (ii) If
      the Yield for such Successful Commercial Batch is [*],
      Genentech shall pay Lonza an amount for such Batch [*];
      or

     

    (iii) If
      the Yield for such Successful Commercial Batch is [*],
      Genentech shall pay Lonza an amount for such Batch [*]

     

    The
      Yield for each such Successful Commercial Batch shall be determined from its
      Batch Record using the protein concentration as reported in its Certificate
      of
      Analysis.

     

    
      	
              3.

            	
              Invoicing
                the Purchase Price for Successful Commercial Batches.
                Section 6.4.4 shall be amended to revise the last three sentences
                of that
                Section as follows:

            

    

     

    Such
      invoices shall reference the Acceptance Date, the Batch delivered and the total
      Purchase Price; provided, for the sake of administrative ease, with respect
      to
      invoices issued under Section 6.4.3(e), Lonza shall invoice all such Successful
      Commercial Batches at an estimated Purchase Price of [*],
      and, [*]
      after the end of each calendar year, Lonza shall send to Genentech a report
      comparing the actual Purchase Price for such Successful Commercial Batches
      and
      the estimated Purchase Price invoiced to Genentech for such calendar year.
      Any
      payment required by Lonza to Genentech or by Genentech to Lonza to compensate
      for such difference between the actual Purchase Price and estimated Purchase
      Price shall be made to the appropriate Party no later than [*]
      of year in which such report is delivered.

     

    In
      addition, for invoices issued with respect to Section 6.4.2(c), such invoices
      shall also reference a complete list of the Successful Commercial Batches
      produced, shipped and accepted by Genentech during such calendar
      year.

     

    Amounts
      due under undisputed correct invoices shall be due and payable in U.S. currency
      within [*]
      after receipt of such invoice.

     

    
      	
              4.

            	
              Process
                Validation Batches for [*].
                With respect to that Qualification Batch identified internally by
                Lonza as
                “[*]”,
                notwithstanding Sections 6.4.2 and 6.4.3(c) of the Agreement, Lonza
                and
                Genentech agree that Genentech shall purchase such Batch from Lonza
                for an
                amount equal to [*]
                (the “Batch
                Payment”)
                [*].
                Such Batch Payment and [*]
                shall
                be the Purchase Price for [*].
                Genentech shall pay such amount within [*]
                of the 2nd
                Amendment Effective Date.

            

    

     

    
      	
              5.

            	
              Milestone
                Payments for Calendar Years 2005 and 2006.
                Section 6.4.3(d) is amended in entirety as
                follows:

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    (d) In
      consideration for Lonza’s success in manufacturing and supplying to Genentech
      Successful Commercial Batches during the calendar year 2005, Genentech shall
      pay
      to Lonza a [*]
      of the 2nd
      Amendment Effective Date. In
      addition, Lonza shall also be entitled to receive:

     

    (i) [*]
      upon Lonza quality release of a [*],
      which Batches resulted from Campaign [*]
      or Campaign [*].
      Such
      additional amount shall be payable upon [*]
      Commercial Batch resulting from such Campaigns; and

     

    (ii) a
      [*]
      payment of [*]
      upon Lonza quality release by [*]
      of
      a [*]
      Successful
      Commercial Batches [*].
      For the avoidance of doubt, no Successful Commercial Batches resulting from
      Campaign [*]
      shall
      count toward such milestone. Such additional amount shall be payable upon
      Genentech’s final release of such Commercial Batches.

     

    For
      the avoidance of doubt, such amounts shall in no event be paid more than once
      each, and with respect to (i) and (ii) only on achievement of such milestone
      by
      the date indicated above. 

     

    
      	
              6.

            	
              [*].
                As
                of the 2nd
                Amendment Effective Date, Genentech and Lonza are in the process
                of
                gathering additional data in order to [*]
                from Campaign [*].
                Lonza and Genentech agree, that with respect to such [*],
                Genentech shall continue to use commercially reasonable efforts to
                perform
                certain activities and testing as necessary, in Genentech reasonable
                judgment and in conformance with the Quality Agreement, to determine
                [*].
                Lonza and Genentech further agree:

            

    

     

    (a) If
      Genentech determines that such Batch is a Successful Commercial Batch, Genentech
      shall pay to Lonza the amounts specified in Section 6.4.3(a) of the Agreement
      for such Successful Commercial Batch, less [*].
      Such amounts shall be due and payable upon Genentech’s release of such Batch;
      or

     

    (b) If
      Genentech rejects such Batch [*]
      and/or if such Batch expires prior to the completion of [*]:
      (i) Genentech shall have no obligation to pay Lonza any amounts for such Batch
      and (ii) Lonza shall pay to Genentech an amount equal to [*].
      Such amount shall be due and payable upon Genentech’s written notice to
      Lonza.

     

    [*]

     

    
      	
              7.

            	
              Rescheduling
                of Campaigns.
                Notwithstanding
                the Campaign, Campaign Minimum and Campaign Minimum Run schedule
                listed on
                Exhibit A of the Agreement (including any amendments thereof in the
                1st
                Amendment):

            

    

     

    (a) the
      [*]
      Campaigns scheduled to commence on [*],
      shall be conducted in [*],
      with: (i) [*],
      to continue for a Campaign Minimum of [*],
      during which time Lonza shall be obligated to perform [*]
      Campaign Minimum Runs; and (ii) such Campaign [*]
      and continue for a Campaign Minimum of [*],
      during which time Lonza shall be obligated to perform [*]
      Campaign Minimum Runs (with the expectation of the Parties that [*]
      Campaign Minimum Runs shall be allocated to conducting [*],
      as further described in Section 3 of the 1st
      Amendment); and

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    (b) the
      [*]
      Campaign
      and the [*]
      Campaign, scheduled to commence on [*],
      shall be [*]
      Campaign, and shall be rescheduled to commence on [*]
      and continue for a Campaign Minimum of [*]
      during which time Lonza shall be obligated to [*]
      Campaign Minimum Runs.

     

    
      	
              8.

            	
              Invoicing
                of Project Batches deemed releasable by Genentech but subject to
                Regulatory Approval.

            

    

     

    Notwithstanding
      Section 5.4.6, but subject to Genentech's
      rights to make claims under Article 9 of the Agreement,
      for Batches manufactured as part of a mutually agreed project subject to
      Regulatory Approval, [*]
      (each a “Project
      Batch”),
      the
      Acceptance Date shall be defined as the date on which Lonza receives written
      notice from Genentech that such Batch has been released, or deemed releasable,
      by Genentech pursuant to applicable release testing standard operating protocols
      as described in the Quality Agreement.  For the avoidance of doubt, per
      Section 6.4.4, Lonza may issue invoices for such Project Batches on or after
      the
      related Acceptance Date.

     

    
      	
              9.

            	
              Amendment
                to the Manufacturing Process; Non-Conforming Bulk Drug Resulting
                from such
                amended Manufacturing Process.

            

    

     

    The
      Parties agree to amend the Manufacturing Process to provide a [*].
      Should any Non-Conforming Bulk Drug result from a Commercial Batch manufactured
      in accordance with such amended Manufacturing Process [*],
      and such non-conformity was not caused by Lonza (or its agents), the Parties
      agree that Genentech will pay to Lonza (a) [*]
      the Purchase Price that would have otherwise been due for such Bulk Drug if
      it
      resulted from a Successful Commercial Batch, and (b) [*]
      of the Acquisition Cost for the raw materials utilized to produce such Bulk
      Drug. Any investigation of such Non-Conforming Bulk Drug shall be completed
      in
      accordance with Article 9 of the Agreement.

     

    10. All
      terms and conditions of the Agreement not modified by this 2nd
      Amendment shall continue in full force and effect in accordance with their
      terms. All capitalized terms not otherwise defined herein shall have the same
      definition as in the Agreement.

     

    [the
      remainder of this page intentionally blank]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Parties have caused this 2nd
      Amendment to be executed as of the Effective Date.

     

    
      	
              GENENTECH,
                INC.

            	 
	 	 	 
	
              By:

            	
              /s/  MARKUS
                GEMUEND

            	 
	 	 	 
	
              Name:

            	
              Markus
                Gemuend

            	 
	 	 	 
	
              Title:

            	
              Vice
                President, Manufacturing
                Collaborations & Contract Manufacturing

            
	 	 	 
	 	 	 
	
              LONZA
                BIOLOGICS, INC.

            	 
	 	 	 
	
              By:

            	
              /s/  STEPHAN
                KUTZER

            	 
	 	 	 
	
              Name:

            	
              Stephan
                Kutzer

            	 
	 	 	 
	
              Title:

            	
              Chief
                Operating Officer

            	 
	 	 	 
	 	 	 
	
              LONZA
                BIOLOGICS, PLC

            	 
	 	 	 
	
              By:

            	
              /s/  STEPHAN
                KUTZER

            	 
	 	 	 
	
              Name:

            	
              Stephan
                Kutzer

            	 
	 	 	 
	
              Title:

            	
              Chief
                Operating Officer

            	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
 

    EXHIBIT
      1

     

    [*]
      Project

     

    Upon
      Genentech’s exercise of its option set forth in Section 1 above of this
      2nd
      Amendment, Lonza shall complete all activities required to implement
[*]
      including those outlined below:

     

    1. [*].

     

    Feasibility
      of doing [*]
      is to be assessed by the parties first confirming the maximum buffer used if
      [*]
      were to be run. To perform [*],
      an additional capital investment will be required if, and only if, it can be
      determined that enough [*]
      is available to provide a safety level during processing. That determination
      can
      only be assessed after the [*]
      are run. Commercial terms for proceeding with capital investments or any other
      charges related to [*]
      will be mutually agreed upon prior to implementation.

     

    It
      is estimated that an [*]
      will correlate to an increase of [*].

     

    Furthermore,
      it is estimated that due to the associated changes required (see details below)
      [*].

     

    Other
      improvements which have increased the reliability of operations in the plant
      should be considered as well.

     

    1.1 Details
      of [*]

     

    [*]
      is not currently validated for use in [*]
      but will be required for the additional supply of the [*].
      The CIP and SIP code are in place but not validated. This
      change will require operations, process validation, documentation, controls
      and
      computer validation resources.

     

    Also,
      [*]
      requires that[*]
      of the [*]
      be used to [*],
      there will [*]
      to allow for safety margins in respect to volume. Instead of using [*],
      the separately prepared [*]
      can be used for this step instead. This will also allow for [*]
      because the [*]
      can be retained [*]
      instead of the [*]
      in which the [*].
      The extra [*]
      may
      increase the overall recovery [*].
      This
      will require operations, process validation, documentation, controls and
      computer validation resources.

     

    As
      a final change, [*]
      requested that [*].
      This was requested to maintain consistency with the other [*]
      chromatography steps. This
      will require operations and documentation support.

     

    Lonza
      assumes that all of these changes will require [*]
      to ensure the change has been completed as desired.

     

    2. Actions/Activity
      Required.

     

    1) [*]

     

    a) Write
      change controls and route for approvals (OPS).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    b) [*].

     

    c) Add
      code to support [*]
      tanks
      of [*]
      (Con).

     

    d) Validate
      any additional code required (CpV).

     

    e) Rewrite
      [*]
      document to include [*]
      in BR (OPS).

     

    f) Provide
      GMP documentation support (DOCS)

     

    g) Rewrite
      [*]
      records (OPS).

     

    2) Use
      [*]
      Equil. instead of [*]
      to equilibrate the skid prior to [*].

     

    a) Code
      the change (CON)

     

    b) Validate
      the code change (CpV)

     

    c) Rewrite
      batch records (OPS)

     

    d) Provide
      GMP documentation support (DOC)

     

    3) Use
      [*]
      instead of [*]
      for flushing filters

     

    a) Change
      batch records

     

    b) Provide
      GMP documentation support

     

    4) Provide
      [*]
      including buffer preparations.

     

    a) [*]
      (upstream and downstream)

     

    3. Schedule
      

     

    It
      is estimated that [*]
      will be required to make the change from [*]
      from the time that Lonza initiates a change control to the [*]
      tests

     

    Also
      [*]
      of down time during the campaign due to [*]
      and [*]
      tests
      are estimated for which we can provide more detail on the affect to the
      scheduling and batch output.

     

    [*]

     

    Genentech
      and Lonza agree that the time required to implement the project will
[*].

     

    4. Cost
      and Benefit

     

    4.1 Costs.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

     

    (a) [*].
      The
      loss [*]
      shall be borne by Genentech; provided such [*]
      shall in no event exceed [*]
      without Genentech’s prior written consent. Such [*]
      shall be invoiced to Genentech at a cost of [*].
      Lonza shall invoice Genentech for such costs on a [*]
      basis. Genentech shall pay all true and correct invoices within [*].
      For the avoidance of doubt, any loss of [*]
      in excess of [*]
      to implement the [*]
      shall be borne by Lonza, and the total amount that may be invoiced to Genentech
      by Lonza under this Section 4.1 of Exhibit 1 shall [*],
      in each case, without Genentech prior written consent.

     

    (b) Reimbursement
      of Costs of [*]. Lonza
      shall reimburse all amounts paid by Genentech to Lonza for [*]
      in accordance with the following. Commencing
      with the first Successful Commercial Batch resulting from [*]
      at the Lonza Facility after Lonza commences the [*],
      and continuing thereafter until Lonza reimburses Genentech for all amounts
      paid
      by Genentech to Lonza for [*],
      for
      each such Successful Commercial Batch whose Yield is [*],
      Lonza shall reimburse to Genentech an amount [*]. In
      conjunction with the report Lonza is to send to Genentech under Section 6.4.4
      of
      the Agreement in each calendar year (as described in Section 3 of this
      2nd
      Amendment above), Lonza shall also provide a report of the Successful Commercial
      Batches for such calendar year which are subject to reimbursement by Lonza
      to
      Genentech. Any reimbursement required by Lonza to Genentech under this Section
      4.1(b) of Exhibit 1 shall be made to Genentech no later than [*]
      of year in which such report is delivered.

     

    (c) Activity
      Costs. The
      actual [*]
      costs to be incurred by Lonza to implement the [*]
      Project as currently projected by the Parties are [*]
      (the “Activity
      Costs”).
      Such Activity Costs shall be borne by Genentech. Lonza shall invoice Genentech
      for a) [*]
      of the expected Activity Costs prior to commencing the [*]
      Project and b) the balance of actual Activity Costs incurred upon completing
      the
[*]
      Project and concurrent with such invoice, Lonza shall provide Genentech with
      a
      written report summarizing the activities completed and the Activity Costs
      incurred by Lonza in support of such activities. Genentech shall pay all
      undisputed invoices within [*]
      of receipt thereof. In the event that Genentech believes that an invoice is
      incorrect, it will inform Lonza within [*]
      of receipt and such disputed amount will be investigated by the parties. Once
      the dispute has been resolved, Genentech shall pay the corrected invoice within
      [*]
      of receipt thereof.

     

    (d) Project
      Scope Changes.
      In the event that the scope of the [*]
      Project changes [*],
      the Parties shall agree in writing to both the scope changes and new estimates
      for the Activity Costs and [*]
      prior to Genentech exercising its option as outlined in Section 1 above of
      this
      2nd
      Amendment. 

     

     

    
      
        
        

      

      
        8

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