Document:

Fourth Amendment of Lease

 Exhibit 10.61 
 FOURTH AMENDMENT OF LEASE 
 THIS FOURTH
AMENDMENT OF LEASE is made this 30th day of March, 2010,
by and between RB KENDALL FEE, LLC (“Landlord”) and CEQUENT PHARMACEUTICALS, INC., having a mailing address at One Kendall Square, Building 600/700, Cambridge, Massachusetts 02139 (“Tenant”).

 R E C I T A L S: 

A. Reference is made to an Indenture of Lease dated December 19, 2006, by and between Landlord, and Tenant, as amended by First
Amendment of Lease also dated December 19, 2006, Second Amendment of Lease dated March 23, 2007, and Third Amendment of Lease dated September 20, 2007 (as amended, the “Lease”), demising approximately 6,397 s.f. of
rentable square feet of space on a portion of the first floor and approximately 456 s.f. of rentable space in the basement (collectively, the “Existing Space”) and approximately 98 s.f. of storage space (the “Storage
Space”) in the basement of Building 600/700 at One Kendall Square, Cambridge, Massachusetts. Capitalized terms used but not defined herein shall have the same meaning as in the Lease. 

B. Landlord and Tenant are the current holders, respectively, of the lessor’s and lessee’s interests in the Lease. 

C. Landlord and Tenant now desire to amend the Lease as set forth herein. 

A G R E E M E N T S: 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows: 

1. Tenant to Vacate Existing Space; Effective Date. Upon the Effective Date (as defined below), Tenant shall quit, vacate and
deliver up the Existing Space pursuant to the requirements of the Lease, including without limitation Article 22 and Section 29.11 thereof (that date which is ten (10) business days after Tenant is given possession of the New Premises
[defined below] is hereinafter referred to as the “Effective Date”). The anticipated Effective Date is June 1, 2010. Landlord shall not be liable to Tenant for any failure to deliver the New Premises on any specified date,
however, if Landlord fails to deliver the New Premises to Tenant by September 1, 2010, except if such failure is due to causes beyond the control of Landlord including matters of force majeure or delays caused by an act or omission of Tenant,
then Tenant may elect, upon written notice to Landlord given no later than September 8, 2010, to terminate the Lease. In the event of such termination, Tenant shall surrender the Existing Premises in accordance with the terms of the Lease.
Landlord shall endeavor to provide commercially reasonable notice of the Effective Date to Tenant at least fifteen (15) days prior thereto. Landlord and Tenant acknowledge that the term of the Lease with respect to the Existing Space is
scheduled to expire on May 31, 2010. In the event the Effective Date is later than June 1, 2010, Tenant shall be permitted to remain in the Existing Premises until the delivery date of the New Premises subject to all of the terms and
conditions of the Lease, and Tenant shall be responsible for the payment of Yearly Rent and additional rent with respect to the Existing Premises at the applicable rate currently set forth in the Lease for any period between June 1, 2010 and
the Effective Date. Upon the Effective Date, the Existing Space shall be deemed to no longer constitute the Premises demised pursuant to the Lease, and Tenant shall have no leasehold or other right, title, or interest therein or thereto. Tenant
shall remain liable for any and all obligations and agreements under the Lease relating to the Existing Space accruing on or before the Effective Date. 

  

 2. New Premises. Upon the Effective Date, the Premises demised
pursuant to the Lease shall consist of approximately 4,782 rentable square feet on the fourth (4th) floor of Building 400 as shown on Exhibit A-1 attached hereto (the “New Premises”). Tenant has inspected the New Premises and accepts the New Premises in its present “as
is” condition, without representation or warranty, express or implied, in fact or in law, by Landlord and without recourse to Landlord as to the nature, condition or usability thereof, except as expressly provided herein. Tenant agrees that
except as otherwise expressly provided herein, Landlord has no work to perform in or on the New Premises to prepare the New Premises for Tenant’s use and occupancy, and that any and all other work to be done in or on the New Premises will be
performed by Tenant at Tenant’s sole cost and expense in accordance with all of the terms and conditions of the Lease, including Articles 12 and 13 thereof. Except as set forth herein, Landlord shall have no obligation, liability or risk
whatsoever with respect to the New Premises or its condition. Tenant further acknowledges that, except as expressly provided in the Lease or in this Fourth Amendment, neither Landlord nor its agents or employees has made any representations or
warranties, expressed or implied, concerning the New Premises, its condition, or the Lease. 
 3. Landlord’s Work.
Landlord shall complete, at Landlord’s sole cost and expense, the following work in a good and workmanlike manner using, where applicable, Landlord’s building standard design and construction materials and finishes
(“Landlord’s Work”): (i) demise the New Premises as shown on the plan attached hereto as Exhibit A-1; (ii) separate the mechanical, electrical and plumbing (MEP) systems serving the New Premises for Tenant’s
exclusive use; (iii) deliver and install HVAC systems conforming to the requirements to be mutually agreed upon by Landlord and Tenant; (iv) supply the New Premises with compressed air, vacuum, cold room, and two (2) six (6) foot
fume hoods; (v) deliver a new 20-kilowatt emergency generator that serves the New Premises; and (vi) deliver all structural and common area components of the Building, including the roof, elevators, windows, loading docks, Building lobby,
Common Areas, and the life safety infrastructure of the Building in good working condition. Tenant shall provide all of Tenant’s equipment, portable fixtures, furnishings, and other special purpose items, including but not limited to bio safety
cabinets, autoclaves, ice machines, minus 80’s, freezer units, etc., at Tenant’s sole cost and expense. 
 4.
Tenant’s Improvements. Tenant shall have access to the New Premises beginning as of that date which is fifteen (15) days prior to the Effective Date for purposes of installing furniture and communications cable
(“Tenant’s Improvements”) in accordance with the terms and conditions of the Lease (as amended hereby). Such right of access shall be subject to all the terms of the Lease and shall be deemed a license from Landlord to Tenant
and any entry into the New Premises hereunder and any storage of Tenant’s equipment and other personal property shall be at Tenant’s sole risk. Prior to entering the New Premises, Tenant shall obtain all insurance it is required to obtain
by the Lease as to the New Premises, if any, and shall provide certificates of said insurance to Landlord. In addition, prior to commencing work on Tenant’s Improvements, Tenant’s contractors and subcontractors shall provide Landlord with
evidence of builder’s risk, general liability, automobile liability, workers compensation, and excess/umbrella insurance policies in coverages reasonably acceptable to Landlord, such policies to be maintained throughout the construction of
Tenant’s Improvements. Tenant shall coordinate such entry with Landlord’s building management, and such entry shall be made in compliance with all terms and conditions of the Lease and the rules and regulations in effect from time to time.

 5. Term. The term of the Lease with respect to the New Premises shall begin as of the Effective
Date and shall expire at 11:59 p.m. on that date which is the last day of the twenty-fourth (24th) complete month following the Effective Date (the “Termination Date”). The parties agree to execute a written agreement confirming the actual Effective Date and Termination Date, once
same are determined. 
 6. Yearly Rent; Additional Rent. (a) Commencing on the Effective Date and continuing until
the day before the first anniversary thereof, Yearly Rent in the amount of $248,664.00, payable in 

  
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equal monthly installments of $20,722.00, shall be due and payable in the manner set forth in Article 6 of the Lease. If the Effective Date is other than the first day of a calendar month, then
Yearly Rent shall be appropriately prorated for such month. For the period beginning on the first anniversary of the Effective Date and ending on the Termination Date, Yearly Rent in the amount of $253,446.00, payable in equal monthly installments
of $21,120.50, shall be due and payable in the manner set forth in Article 6 of the Lease. 
 (b) Commencing on the Effective
Date, Tenant shall continue to pay, as additional rent under the Lease, Tenant’s Tax Share and Tenant’s Operating Expense Share in the manner set forth in Sections 9.2 and 9.3 of the Lease. Exhibit 1 to the Lease is hereby amended to
reflect the following changes: 
 Total Rentable Area of Building No. 400: 20,319 square feet 

Total Rentable Area of Complex: 639,586 square feet 
 Tenant’s Proportionate Common Area Share: 0.75% 
 Tenant’s Proportionate
Building Share: 23.5% 
 7. Utilities. As of the Effective Date, Tenant shall pay Tenant’s Proportionate Building
Share of electricity charges as and when invoiced by Landlord, together with monthly installments of Yearly Rent and additional rent. 
 8. Subletting and Assignment. As of the Effective Date, Article 16 of the Lease is hereby amended to include the following: 
 “Without limitation of the rights of Landlord hereunder in respect thereto, if there is any subletting of the whole of the premises by Tenant at a rent which exceeds the rent payable hereunder by
Tenant, or if there is a subletting of a portion of the premises by Tenant at a rent in excess of the subleased portion’s pro rata share of the rent payable hereunder by Tenant, then Tenant shall pay to Landlord, as additional rent, fifty
percent (50%) of all such excess rent forthwith upon Tenant’s receipt of any of the same. For the purposes of this paragraph, the term ‘rent’ shall mean all Yearly Rent, additional rent or other payments and/or consideration
payable by one party to another for the use and occupancy of all or a portion of the premises including, without limitation, key money, or bonus money paid by subtenant to Tenant in connection with such transaction and any payment in excess of fair
market value for services rendered by Tenant to the subtenant in connection with any such transaction, but shall exclude any separate payments by Tenant for reasonable attorney’s fees, broker’s commissions, and leasehold improvements paid
directly by Tenant in connection with such subletting.” 
 9. Extension Term. Tenant shall have one (1) three
(3) year option to extend the term of the Lease as amended hereby (the “Extension Term”), exercisable upon written notice to Landlord provided not later than twelve (12) months before the Termination Date. Yearly Rent
payable during the Extension Term shall be equal to the Fair Market Rental Value as determined pursuant to Section 29.16 of the Lease. 
 10. Parking. Section 29.14 of the Lease is amended to provide that the current rate for monthly parking passes in the Garage is $220 per month. 

11. Security Deposit. Tenant acknowledges and agrees that Landlord is holding a security deposit in the amount of $45,132.75 and
that such security deposit shall continue to secure Tenant’s obligations under the Lease in accordance with the terms and conditions thereof. 

  
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 12. Storage Space. Tenant’s license to use the Storage Space shall be
coterminous with the term of the Lease, as amended hereby and as may be further extended from time to time, and subject to the terms and conditions of the Lease. 
 13. Brokers. Landlord and Tenant each warrant and represent to the other that they have dealt with no brokers in connection with the negotiation or consummation of this Fourth Amendment except for
Cushman and Wakefield and FHO Partners (collectively, the “Broker”) and in the event of any brokerage claim against either party by any person claiming to have dealt with either Landlord or Tenant in connection with this Fourth
Amendment other than Broker, the party with whom such person claims to have dealt shall defend and indemnify the other party against such claim. Landlord shall pay the Broker’s commission pursuant to a separate agreement. 

14. Notices. For all purposes of the Lease, the notice address for Landlord shall hereafter be as follows: RB Kendall Fee, LLC,
One Kendall Square, Cambridge, Massachusetts 02139. Any notices given to Landlord shall be delivered in accordance with the terms of the Lease to the foregoing address with copies to be delivered in like manner to Landlord, c/o The Beal Companies,
LLP, 177 Milk Street, Boston, Massachusetts 02109, Attention: Stephen N. Faber, Senior Vice President and Peter A. Spellios, Esquire, Senior Vice President and General Counsel and to Sherin and Lodgen LLP, 101 Federal Street, Boston, Massachusetts
02110, Attention: Robert M. Carney, Esquire. 
 15. Ratification. In all other respects the Lease shall remain unmodified
and shall continue in full force and effect, as amended hereby. The parties hereby ratify, confirm, and reaffirm all of the terms and conditions of the Lease, as amended hereby. 

  
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 IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment of Lease on the
date first written above in multiple copies, each to be considered an original hereof, as a sealed instrument. 
  

									
	LANDLORD:	  	TENANT:
		
	 RB KENDALL FEE, LLC,

a Delaware limited liability company
	  	 CEQUENT PHARMACEUTICALS, INC.,
 a Delaware corporation

				
	 By:
	 	
 

	  	By:	 	
 

		 	Robert L. Beal, its authorized signatory	  		 	Name:	  	TED HIBBEN
		 		  		 	 Title:
	  	CHIEF BUSINESS OFFICER

  
 5Third Amendment to the December 10, 2009 Industrial Lease

 Exhibit 10.14 
 Third Amendment to Industrial Lease 
 This Third Amendment to Industrial Lease (the
“Amendment”) is made and entered into as of December     , 2010 (the “Amendment Date”), by and between AMB Property, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences
of California, Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”), with reference to the following facts. 

Recitals 
 A.
Landlord and Tenant have entered into that certain Industrial Lease dated as of December 10, 2009 and modified by that certain Commencement Date Certificate dated
                    , as amended by that certain Second Amendment to Lease Agreement dated as of August 13, 2010 (collectively, the
“Lease”), for the leasing of certain premises consisting of approximately 29,371 square feet located at 940 Hamilton Avenue (formerly known as 1394 Willow Road), Menlo Park, California (the “ Premises”) as such Premises are more
fully described in the Lease. 
 B. Landlord and Tenant now wish to amend the Lease to provide for, among other things, the extension of
the Term of the Lease upon and subject to each of the terms, conditions, and provisions set forth herein. 
 NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant agree as follows: 
 1. Recitals: Landlord and Tenant agree that the above recitals are true and correct and are hereby incorporated herein as though set forth in full. 

2. Term: The Term of the Lease, which is currently scheduled to expire on April 30, 2015 (the “Lease Expiration
Date”), is hereby extended until December 31, 2015 (the “Revised Expiration Date”), unless sooner terminated in accordance with the terms of the Lease. The 8-month period from and after the Lease Expiration Date through the
Revised Expiration Date shall hereinafter be referred to as the “Extended Term”. 
 3. Base Rent:
Paragraphs 1.4 and 4 of the Lease are hereby modified to provide that as of the commencement of the Extended Term, the monthly Base Rent payable by Tenant to Landlord, in accordance with the provisions of Paragraphs 1.4 and 4 of the Lease shall be
as follows: 
  

					
	 Period
	  	Monthly Base Rent	 
	 5/1/15 – 12/31/15
	  	$	56,180.91	  

 4. Additional
Lease Modifications: Landlord and Tenant agree that the Lease shall also be modified as follows: 
 a. In
Paragraph 4.2(a)(vi), the following shall be added after the phrase “paragraph 8 below:” “(excluding the premiums and deductibles paid by Tenant to maintain the insurance coverage Tenant is required to maintain pursuant to Paragraph
8.2(a) below).” 
 b. In Subparagraph 4.2(e), the following shall be added as additional
items not included within the term “Operating Expenses:” “(x) costs incurred because Landlord or another tenant actually violated the terms and conditions of any lease for premises within the Industrial Center or due to
Landlord’s gross negligence or willful misconduct; (xi) any items for which Landlord is actually reimbursed by insurance or by direct reimbursement by any other tenant of the Industrial Center; (xii) costs associated with the
investigation and/or remediation of Hazardous Substances (hereafter defined) present in, on or about any portion of the Industrial Center, unless such costs and expenses are the responsibility of Tenant as provided in Paragraph 6.2 hereof;
(xiii) Landlord’s cost for the repairs and maintenance items set forth in the first (1st) sentence (and subject to the terms) of Paragraph 7.2; (xiv) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in the
Industrial Center to the extent the same exceeds the costs of such by unaffiliated third parties on a competitive basis; or any costs included in Operating Expenses representing an amount paid to a person, firm, corporation or other entity related
to Landlord which is in excess of the amount which would have been paid in the absence of such relationship; (xv) the cost of correcting any building code or other code violations which were violations prior to the Commencement Date of this
Lease; and (xvi) wages, salaries, or other compensation paid to any executive employees of Landlord above the grade of building manager.” 
 c. The following shall be inserted as Subparagraph 4.2(f): 
 “(f) After
delivery to Landlord of at least thirty (30) days’ prior written notice, Tenant, at its sole cost and expense through any accountant designated by it, shall have the right to examine and/or audit the books and records evidencing such
expenses for the previous one (1) calendar year, during Landlord’s reasonable business hours but not more frequently than once during any calendar year. Tenant may not compensate any such accountant on a contingency fee basis. The results
of any such audit (and any negotiations between the parties related thereto) shall be maintained strictly confidential by Tenant, its lawyers and its 

  
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accounting firm and shall not be disclosed, published or otherwise disseminated to any other party other than to Landlord and its authorized agents, except as otherwise required by Applicable
Requirements or court order. Landlord and Tenant each shall use its commercially reasonable efforts to cooperate in such negotiations and to promptly resolve any discrepancies between Landlord and Tenant in the accounting of such expenses.”

 d. In Paragraph 5, the term “reasonable” shall be added in the fifth (5th) line of such paragraph, between the term “including”
and “attorneys’.” 
 e. In Subparagraph 6.2(c), the term
“reasonable” shall be added (i) in the fourth (4th) line of such subparagraph between the term “and” and “attorneys’” and (ii) in the ninth (9th) line of such subparagraph between the term “including” and “consultants.” 

f. The following Paragraphs 6.7 and 6.8 shall be added to the Lease: 

“6.7 Disclosure. The land described herein contains residual hazardous substances. Such condition renders the land and
the Landlord, Tenant or other possessor of the land subject to requirements, restrictions, provisions, and liabilities contained in Chapter 6.5 and Chapter 6.8 of Division 20 of the Health and Safety Code, as same may be amended from time, and any
successor statutes thereof. This statement is not a declaration that a hazard to public health, safety and welfare exists. 

6.8 Landlord Indemnification. With respect to only those Hazardous Substances present on, in or under the Industrial Center
as of the date of this Lease (the “Existing Hazardous Substances”), Landlord agrees to indemnify, defend (with counsel reasonably acceptable to Tenant) and hold Tenant harmless from and against any and all claims, judgments, damages,
penalties, fines, liabilities, losses, suits, administrative proceedings and costs (including, but not limited to, reasonable attorneys’ and consultant fees and court costs), arising at any time during or after the Term of this Lease, to the
extent arising from (1) any of the Existing Hazardous Substances and/or (2) the removal, investigation, monitoring or remediation of any of the Existing Hazardous Substances; provided, however, Landlord shall not indemnify, defend or hold
Tenant harmless to the extent (x) Tenant or any of the Tenant Entities contributes to or has contributed to the presence of such Existing Hazardous Substances or Tenant and/or any of the Tenant Entities exacerbates the conditions caused by such
Existing Hazardous Substances, or (y) Tenant and/or any of the Tenant Entities allows or permits persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible
for, to cause such Existing Hazardous Substances to be present in, on, under, through or about any portion of the Premises, the Building or the Industrial Center, or does not take all reasonably appropriate actions to prevent such persons over which
Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible from causing the presence of Existing Hazardous Substances in, on, under, through or about any portion of the Premises,
the Building or the Industrial Center. Landlord’s obligations under this Paragraph 6.8 shall survive the Expiration Date or earlier termination of this Lease.” 

g. In Paragraph 6.4, the following shall be added in the fifth (5th) line after the term “Applicable Requirements”:
“; provided, however, Tenant shall have the right to have a representative present during such inspections and such inspections shall occur upon not less than 48 hours notice during normal business hours. It is further agreed that Landlord
shall have the right to use any and all means Landlord deems necessary to enter the Premises in an emergency and in the case of emergency advance notice shall not be required, provided that Landlord agrees to use its commercially reasonable efforts
to contact Tenant’s 24/7 security number (650-269-8434) to notify Tenant of the emergency. Landlord shall use commercially reasonable efforts to minimize any interference with Tenant’s business operations during any entry into the
Premises.” 
 h. In Paragraph 6.6, the term “reasonable” shall be added in the
tenth (10th) line between the term
“limitation,” and “attorneys’.” 
 i. In Paragraph 7.2, (i) the
phrase “floors and of the” shall be added in the fourth (4th) line thereof between the phrase “structure of the” and “exterior walls,” and (ii) the following shall be inserted after the phrase “outside of the Premises” in
the sixth (6th) line thereof: “(including,
without limitation, fire protection services and plumbing, mechanical (including HVAC) and electrical systems serving the Building but excluding the plumbing, mechanical and electrical systems exclusively serving the Premises), and the parking
areas, pavement, landscaping, sprinkler systems, sidewalks, driveways, curbs and lighting systems in the Common Areas.” 
 j. In Subparagraph 8.2(d), the phrase “or material change” shall be deleted. 

  
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 k. In Paragraph 8.5, the following shall be inserted at
the beginning of such paragraph: “Except to the extent caused by the gross active or gross passive negligence or willful misconduct of Landlord or any Landlord Entity,”. Also the term “reasonable” shall be added in the second
(2nd) line of such Paragraph 8.5, between the term
“and” and “attorneys’.” 
 l. In Paragraph 8.6, the phrase “or
any Landlord Entity” shall be added in the second
(2nd) line of such Paragraph 8.6, between the term
“Landlord,” and “neither.” 
 m. Paragraph 9.1 of the Lease is hereby deleted and the
following substituted therefor: 
 “9.1 Termination Right. Tenant shall give Landlord immediate written
notice of any damage to the Premises. Subject to the provisions of Paragraph 9.2, if the Premises or the Building shall be damaged to such an extent that there is substantial interference for a period exceeding one hundred eighty
(180) consecutive days with the conduct by Tenant of its business at the Premises (provided, up to an additional sixty (60) days shall be added to such one hundred eighty (180) consecutive day period to account for time Landlord may
require to obtain permits for such repairs), then either party, at any time prior to commencement of repair of the Premises and following ten (10) days written notice to the other party, may terminate this Lease effective thirty (30) days
after delivery of such notice to the other party. Within forty five (45) days following the occurrence of such damage, Landlord shall inform Tenant in writing of Landlord’s estimate of the time required to complete repairs to the Premises.
Further, if any portion of the Premises is damaged and is not fully covered by the aggregate of insurance proceeds received by Landlord and any applicable deductible or if the holder of any indebtedness secured by the Premises requires that the
insurance proceeds be applied to such indebtedness, and Tenant does not voluntarily contribute any shortfall thereof to Landlord, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within
sixty (60) days after the date of notice to Tenant of any such event. Such termination shall not excuse the performance by Tenant of those covenants which under the terms hereof survive termination. Rent shall be abated in proportion to the
degree of interference during the period that there is such substantial interference with the conduct of Tenant’s business at the Premises. Abatement of rent and Tenant’s right of termination pursuant to this provision shall be
Tenant’s sole remedy with respect to any such damage regardless of the cause thereof.” 
 n. In Paragraph 10.2, the term “reasonable” shall be added in the seventh (7th) line thereof after the term “including” and before the term “attorneys’.” 

o. In Paragraph 12.2, in the second (2nd) and fourth (4th) sentences thereof, the phrase “thirty (30) days” shall be deleted and the phrase “fifteen
(15) business days” substituted therefor. 
 p. In Paragraph 12.3, subparagraphs (h) and
(k) shall be deleted and subparagraph “(i)” shall be relabeled “(h)”; subparagraph “(j)” shall be relabeled “(i)” and subparagraph “(l)” shall be relabeled “(j).” 

q. In Paragraph 13.3, (i) the number “4” shall be deleted and the number “5”
substituted therefor and (ii) the following phrase shall be added at the end of the third (3rd) sentence thereof: “; provided, however, the foregoing late charge shall not be applicable to the first (1st) instance of late payment of Rent by Tenant until three (3) business days after written notice to Tenant of
such late payment”. 
 r. In Paragraph 14, the following shall be added at the end of
the third (3rd) sentence thereof: “and Landlord
shall, if necessary, promptly proceed to restore the Premises or the Building, as applicable, to substantially its same condition prior to such partial condemnation, allowing for the reasonable effects of such partial condemnation, and a
proportionate allowance shall be made to Tenant for the rent corresponding to the time during which, and to the part of the Premises of which, Tenant is deprived on account of such partial condemnation and restoration. Landlord shall not be required
to spend funds for restoration in excess of the amount received by Landlord as compensation awarded.” 
 s.
In Paragraph 15.2, the following shall be added as a new sentence at the end of such Paragraph 15.2: “Tenant shall not be required to deliver such financial statements to Landlord so long as Tenant is a publicly-held company whose stock is
listed on a national exchange.” 
 t. In Paragraph 16.9, the term “reasonable” shall be added in
the last sentence of such Paragraph 16.9 before the term “attorneys’.” 
 u.
In Paragraph 16.13, the term “reasonable” shall be added in the third (3rd) sentence thereof before the term “attorneys’.” 

  
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 v. In Paragraph 16.14, the following phrase shall be added at the beginning
of such Paragraph 16.14: “Subject to the terms of Paragraph 6.4 above.” 
 w. In Subparagraph 16.18(a)
the following shall be inserted at the beginning thereof: “Subject to the nondisturbance provisions of subparagraph 16.18(c),”. 
 x. In Subparagraph 16.18(c), the following phrase shall be inserted following the phrase “With respect to a Mortgage entered into by Landlord after the execution of this Lease,”: “and to
any and all advances made on the security thereof, and to all renewals, modifications, consolidations, replacements and extensions thereof,”. 

y. In Paragraph 16.29, the following shall be inserted at the end of the second (2nd) sentence of such Paragraph 16.29: “; provided, such
Renovations shall not unreasonably interfere with Tenant’s access to the Premises or access to the parking areas.” 
 z. In Exhibit E, the following shall be added at the end of number 10: “, which permission shall not be unreasonably withheld, conditioned or delayed.” 

aa. Addendum 1 of the Lease is hereby deleted in its entirety and Addendum 1 attached hereto and
incorporated herein by this reference shall be substituted therefor. 
 5. Right of First Offer: Landlord and
Tenant acknowledge and agree that Tenant is, concurrently with the execution and delivery of this Amendment, executing and delivering leases to Landlord for all of the Expansion Spaces (as defined in Addendum 2 to the Lease) and therefore, Addendum
2 to the Lease shall be of no further force or effect upon the execution and delivery of such leases for the Expansion Spaces. 

6. Condition of the Premises: Tenant acknowledges and agrees that its possession of the Premises after the Amendment Date,
is a continuation of Tenant’s possession of the Premises under the Lease. Tenant is familiar with the condition of the Premises, and agrees to accept the Premises in their existing condition “AS IS”, without any obligation of Landlord
to remodel, improve or alter the Premises, to perform any other construction or work of improvement upon the Premises, or to provide Tenant with any construction or refurbishing allowance. 

7. Brokers: Tenant warrants that it has had no dealings with any real estate broker or agent in connection with the
negotiation of this Amendment whose commission shall be payable by Landlord, except Cornish & Carey Commercial and Cassidy Turley BT Commercial (collectively, “Brokers”). If Tenant has dealt with any person, real estate broker or
agent with respect to this Amendment other than Brokers, Tenant shall be solely responsible for the payment of any fee due to said person or firm, and Tenant shall indemnify, defend and hold Landlord free and harmless against any claims, judgments,
damages, costs, expenses, and liabilities with respect thereto, including attorneys’ fees and costs. 
 8. Effect of
Amendment: Except as modified herein, the terms and conditions of the Lease shall remain unmodified and continue in full force and effect. In the event of any conflict between the terms and conditions of the Lease and this Amendment, the
terms and conditions of this Amendment shall prevail. 
 9. Definitions: Unless otherwise defined in this
Amendment, all terms not defined in this Amendment shall have the meanings assigned to such terms in the Lease. 
 10.
Authority: Subject to the provisions of the Lease, this Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors and assigns. Each party hereto and the
persons signing below warrant that the person signing below on such party’s behalf is authorized to do so and to bind such party to the terms of this Amendment. 
 11. Incorporation: The terms and provisions of the Lease are hereby incorporated in this Amendment. 
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first above written. 
 LANDLORD 
  

			
	AMB PROPERTY, L.P.,
	a Delaware limited partnership
		
	By:	 	AMB PROPERTY CORPORATION,
		 	a Maryland corporation, its general partner

			
		
	        By:	 	 /s/ Mark
Hansen

			
	        Name:	 	 Mark Hansen

			
	        Its:	 	 Sr. Vice
President

			
	        Date:	 	 12/29/10

 ///signatures continued on next page/// 

  
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 ///signatures continued from previous page/// 

TENANT 
 PACIFIC BIOSCIENCES OF
CALIFORNIA, INC., 
 a Delaware corporation, dba Pac Bio, Inc. 
  

			
	By:	 	 /s/ Susan
Barnes

			
	Name: Susan Barnes
	Its:	 	Executive Vice President and Chief Financial Officer

			
	Date:	 	 12/29/10

 If Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The document must be executed by the chairman of the board,
president or vice-president, and the secretary, assistant secretary, chief financial officer or any assistant treasurer, unless the bylaws or a resolution of the board of directors shall otherwise provide, in which event, the bylaws or a certified
copy of the resolution, as the case may be, must be attached to this document. 

  
 5 

 Addendum 1 
 Options to Extend 
 This Addendum 1 (the “Addendum”) is incorporated as a part of
that certain Third Amendment to Industrial Lease dated 
 December __, 2010 (the “Amendment”), by and between AMB Property, L.P., a
Delaware limited partnership (“Landlord”), and Pacific Biosciences of California, Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”), for the leasing of those certain premises commonly known as 940 Hamilton Avenue
(formerly known as 1394 Willow Road), Menlo Park, California. Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Amendment. 

1. Grant of Extension Options. Subject to the provisions, limitations and conditions set forth in Paragraph 5 below, Tenant shall have an
Option (individually, an “Option” and collectively, the “Options”) to extend the Extended Term of the Lease for two (2) consecutive five (5) year periods (individually, an “Option Extended Term” and
collectively, “Option Extended Terms”). 
 2. Tenant’s Option Notice. Tenant shall have the right to deliver
written notice to Landlord of its intent to exercise an Option (the “Option Notice”). If Landlord does not receive an Option Notice from Tenant on a date which is neither more than three hundred sixty five (365) days nor less than two
hundred twenty five (225) days prior to the end of the Extended Term or first Option Extended Term, as applicable, all rights under the applicable Option shall automatically terminate and shall be of no further force or effect. Upon the proper
exercise of the first Option, subject to the provisions, limitations and conditions set forth in this Addendum, the Extended Term of the Lease shall be extended for the first Option Extended Term and upon the proper exercise of the second Option,
subject to the provisions, limitations and conditions set forth in Paragraph 5 below, the first Option Extended Term shall be extended for the second Option Extended Term; provided, Tenant shall have no right to exercise the Option for the second
Option Extended Term if Tenant failed to properly exercise the Option for the first Option Extended Term. 
 3. Determination of the
Option Rent. 
 A. The Base Rent payable for each month during each Option Extended Term shall be set at ninety-five
percent (95%) of the then-prevailing fair market rental rate (the “Prevailing Rental Rate”) for renewals of space of equivalent quality, type, size and location in comparable R&D buildings in Menlo Park, with the length of the
applicable Option Extended Term, the then credit standing of Tenant, tenant improvement allowances then being granted in the marketplace and other market rent concessions then being offered in the marketplace to be taken into account. The Prevailing
Rental Rate shall include the periodic rental increases, if any, that would be included for space leased for the period the Premises will be covered by the Lease. As used herein, “then-prevailing” shall mean the time period which is six
(6) months prior to the commencement of the applicable Option Extended Term and not the commencement date of the applicable Option Extended Term. Within thirty (30) days after receipt of Tenant’s notice to renew, Landlord shall
deliver to Tenant written notice of Landlord’s determination of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to Base Rent, if any, and the other terms and conditions offered. Tenant shall, within ten
(10) days after receipt of Landlord’s notice, time being of the essence with respect thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. 

B. If Tenant rejects Landlord’s determination of the Prevailing Rental Rate, Tenant’s written notice shall include
Tenant’s own determination of the Prevailing Rental Rate. If Tenant does not deliver any written notice to Landlord within ten (10) days after receipt of Landlord’s notice of the Prevailing Rental Rate, Tenant shall be deemed to have
withdrawn its exercise of its rights under this Addendum, whereupon Tenant’s rights under this Addendum shall be null and void and of no further force or effect. If Tenant and Landlord disagree on the Prevailing Rental Rate, then Landlord and
Tenant shall attempt in good faith to agree upon the Prevailing Rental Rate. If by that date which is four (4) months prior to the commencement of the applicable Option Extended Term (the “Option Trigger Date”), Landlord and Tenant
have not agreed in writing as to the Prevailing Rental Rate, the parties shall determine the Prevailing Rental Rate in accordance with the procedure set forth in Paragraph C below. 

C. If Landlord and Tenant are unable to reach agreement on the Prevailing Rental Rate by the Option Trigger Date, then within ten
(10) days of the applicable Option Trigger Date, Landlord and Tenant shall each simultaneously submit to the other in a sealed envelope its good faith estimate of the Prevailing Rental Rate. If either Landlord or Tenant fails to propose a
Prevailing Rental Rate, then the Prevailing Rental Rate proposed by the other party shall prevail. If the higher of such estimates is not more than one hundred five percent (105%) of the lower, then the Prevailing Rental Rate shall be the
average of the two. Otherwise, the dispute shall be resolved by arbitration in accordance with the remainder of this Paragraph C. Within seven (7) days after the exchange of estimates, the parties shall select as an arbitrator a licensed real
estate broker with at least ten (10) years of experience leasing premises in Class A office buildings in Central San Mateo County (a “Qualified Arbitrator”). If the parties cannot agree on a Qualified Arbitrator, then within a
second period of seven (7) days, each shall select a Qualified Arbitrator and within ten (10) days thereafter the two appointed Qualified Arbitrators shall select a third Qualified Arbitrator (which third Qualified Arbitrator shall not
previously have represented either party hereto) and the third Qualified Arbitrator shall be the sole arbitrator (the “Sole Arbitrator”). If one party shall fail to select a Qualified Arbitrator within the second seven (7)-day period, then
the Qualified Arbitrator chosen by the other party shall be the Sole Arbitrator. Within thirty (30) days after submission of the matter to the Sole Arbitrator, the Sole Arbitrator shall determine the Prevailing Rental Rate by choosing whichever
of the estimates submitted by 
 Addendum 1, Page 1 

 
Landlord and Tenant the Sole Arbitrator judges to be more accurate. The Sole Arbitrator shall notify Landlord and Tenant of his or her decision, which shall be final and binding. If the Sole
Arbitrator believes that expert advice would materially assist him or her, the Sole Arbitrator may retain one or more qualified persons to provide expert advice. The fees of the arbitrator selected by each party shall be borne by that party. The
fees of the Sole Arbitrator and the expenses of the arbitration proceeding, including the fees of any expert witnesses retained by the Sole Arbitrator, shall be shared equally by Landlord and Tenant. 

D. If Tenant timely notifies Landlord that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, or following
resolution of the Prevailing Rental Rate via mutual agreement or via arbitration, whichever shall be applicable, then, on or before the commencement date of the applicable Option Extended Term, Landlord and Tenant shall execute an amendment to this
Lease prepared by Landlord extending the Term on the same terms provided in this Lease, except as follows: 
 (i) Base Rent
shall be adjusted to ninety-five percent (95%) of the Prevailing Rental Rate (which shall be the rental rate set forth in Landlord’s determination of the Prevailing Rental Rate, the rental rate determined by mutual agreement or the
Prevailing Rental Rate determined by arbitration, as the case may be, but in no event less than the Base Rent payable by Tenant immediately prior to the expiration of the Extended Term of this Lease with respect to the first Option Extended Term and
in no event less than the Base Rent payable by Tenant immediately prior to the expiration of the first Option Extended Term with respect to the second Option Extended Term); 
 (ii) Tenant shall have no further renewal Option (except as expressly set forth in this Addendum 1) unless expressly granted by Landlord in writing; and 

(iii) Landlord shall lease the Premises to Tenant in their then-current condition, and Landlord shall not provide to Tenant any
allowances (e.g., improvement allowance) or other tenant inducements, or pay any leasing commissions. 
 E. Tenant’s rights
under this Addendum shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is terminated, (2) Tenant assigns any of its interest in this Lease or sublets any portion of the Premises, or (3) Tenant fails
to timely exercise its Option under this Addendum, time being of the essence with respect to Tenant’s exercise thereof. Tenant shall have no other rights to extend the Term of the Lease under this Addendum unless Landlord and Tenant otherwise
agree in writing. 
 4. Condition of Premises for the Option Extended Terms. If Tenant timely and properly exercises this Option,
in strict accordance with the terms contained herein, Tenant shall accept the Premises in its then “As-Is” condition and, accordingly, Landlord shall not be required to perform any additional improvements to the Premises. Tenant shall not
be responsible for brokerage commissions payable to a broker procured or hired by Tenant in connection with the Option if Landlord has agreed in writing to pay such commission. 
 5. Limitations On, and Conditions To, Extension Option. This Option is personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as part of the Lease. At
Landlord’s option, all rights of Tenant under this Option shall terminate and be of no force or effect if any of the following individual events occur or any combination thereof occur: (1) Tenant has been in default at any time during the
Extended Term or first Option Extended Term, as applicable, of the Lease, or is in default of any provision of the Lease on the date Landlord receives the Option Notice; and/or (2) Tenant has assigned its rights and obligations under all or
part of the Lease or Tenant has subleased all or part of the Premises; and/or (3) Tenant’s financial condition is unacceptable to Landlord at the time the Option Notice is delivered to Landlord; and/or (4) Tenant has failed to
exercise properly this Option in a timely manner in strict accordance with the provisions of this Addendum; and/or (5) Tenant no longer has possession of all or any part of the Premises under the Lease, or if the Lease has been terminated
earlier, pursuant to the terms and provisions of the Lease. 
 6. Time is of the Essence. Time is of the essence with respect to
each and every time period described in this Addendum. 
 Addendum 1, Page 2

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