Document:

exv10w1

Exhibit 10.1

LEASE

Franklin Templeton Companies, LLC,

a Delaware limited liability company,

Landlord

and

DemandTec, Inc.,

a Delaware corporation,

Tenant

for

The Second and Third Floors

Building 910

One Franklin Parkway

San Mateo, California

September 21, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1
	 	BASIC LEASE PROVISIONS	 	 	1	 
	 
	ARTICLE 2
	 	PREMISES; TERM; RENT	 	 	4	 
	 
	ARTICLE 3
	 	USE AND OCCUPANCY	 	 	7	 
	 
	ARTICLE 4
	 	CONDITION OF THE PREMISES	 	 	7	 
	 
	ARTICLE 5
	 	ALTERATIONS	 	 	8	 
	 
	ARTICLE 6
	 	REPAIRS	 	 	9	 
	 
	ARTICLE 7
	 	[THIS ARTICLE 7 IS INTENTIONALLY DELETED]	 	 	10	 
	 
	ARTICLE 8
	 	REQUIREMENTS OF LAW	 	 	10	 
	 
	ARTICLE 9
	 	SUBORDINATION	 	 	11	 
	 
	ARTICLE 10
	 	SERVICES	 	 	12	 
	 
	ARTICLE 11
	 	INSURANCE; PROPERTY LOSS OR DAMAGE	 	 	15	 
	 
	ARTICLE 12
	 	EMINENT DOMAIN	 	 	18	 
	 
	ARTICLE 13
	 	ASSIGNMENT AND SUBLETTING	 	 	19	 
	 
	ARTICLE 14
	 	ACCESS TO PREMISES	 	 	24	 
	 
	ARTICLE 15
	 	DEFAULT	 	 	25	 
	 
	ARTICLE 16
	 	LANDLORD’S RIGHT TO CURE; FEES AND EXPENSES	 	 	28	 
	 
	ARTICLE 17
	 	NO REPRESENTATIONS BY LANDLORD;
LANDLORD’S APPROVAL	 	 	29	 
	 
	ARTICLE 18
	 	END OF TERM	 	 	29	 
	 
	ARTICLE 19
	 	QUIET ENJOYMENT	 	 	30	 
	 
	ARTICLE 20
	 	NO SURRENDER; NO WAIVER	 	 	30	 
	 
	ARTICLE 21
	 	WAIVER OF COUNTERCLAIM	 	 	30	 
	 
	ARTICLE 22
	 	NOTICES	 	 	30	 
	 
	ARTICLE 23
	 	RULES AND REGULATIONS	 	 	31	 
	 
	ARTICLE 24
	 	BROKER	 	 	31	 
	 
	ARTICLE 25
	 	INDEMNITY	 	 	31	 
	 
	ARTICLE 26
	 	MISCELLANEOUS	 	 	32	 
	 
	ARTICLE 27
	 	LETTER OF CREDIT	 	 	35	 
	 
	ARTICLE 28
	 	PARKING	 	 	37	 
	 
	ARTICLE 29
	 	FURNITURE	 	 	38	 
	 
	ARTICLE 30
	 	RENEWAL TERM	 	 	38	 
	 
	ARTICLE 31
	 	SECURITY DEPOSIT	 	 	39	 

(i)

 

Schedule of Exhibits

	 	 	 
	Exhibit A-1

	 	Floor Plan of the Second Floor
	 
	Exhibit A-2

	 	Floor Plan of the Third Floor
	 
	Exhibit A-3

	 	Site Plan
	 
	Exhibit B

	 	Definitions
	 
	Exhibit C

	 	Work Letter
	 
	Exhibit D

	 	Design Standards
	 
	Exhibit E

	 	Cleaning Specifications
	 
	Exhibit F

	 	Rules and Regulations
	 
	Exhibit F-1

	 	Shared Facilities Rules and Regulations
	 
	Exhibit G

	 	Additional Monument Sign
	 
	Exhibit H

	 	Office Furniture
	 
	Exhibit I

	 	Form of Letter of Credit

(ii)

 

LEASE

THIS LEASE is made as of the 21st day of September, 2009 (“Effective Date”), between Franklin
Templeton Companies, LLC, a Delaware limited liability company (“Landlord”), and DemandTec, Inc., a
Delaware corporation (“Tenant”).

Landlord and Tenant hereby agree as follows:

ARTICLE 1

BASIC LEASE PROVISIONS

	 	 	 
	PREMISES
	 	The entire second and third floors portion of the Building, as more
	 
	 	particularly shown on Exhibit
A-1 and Exhibit A-2.
	 
	 	 
	BUILDING
	 	The building, fixtures, equipment and other improvements and
	 
	 	appurtenances now located or hereafter erected, located or placed upon
	 
	 	the land known as Building 910, One Franklin Parkway, San Mateo,
	 
	 	California 94403.
	 
	 	 
	PROJECT
	 	The Franklin Templeton Office Campus located at Bay Meadows, San Mateo,
	 
	 	California comprising, as of the Effective Date, four office buildings
	 
	 	(including the Building) together with certain structured parking
	 
	 	facilities, all as more particularly shown on the Site Plan attached
	 
	 	hereto as Exhibit A-3.
	 
	 	 
	COMMENCEMENT DATE
	 	December 1, 2009
	 
	 	 
	RENT COMMENCEMENT
	 	The Commencement Date.
	DATE
	 	 
	 
	 	 
	EXPIRATION DATE
	 	November 30, 2017
	 
	 	 
	TERM
	 	The period commencing on the Commencement Date and ending on the
	 
	 	Expiration Date.
	 
	 	 
	PERMITTED USES
	 	Executive and general offices and research and development, consistent
	 
	 	with the character of the Building as a first-class office building.
	 
	 	 
	AGREED AREA OF
	 	113,723 rentable square feet, as mutually agreed by Landlord and Tenant.
	BUILDING
	 	 
	 
	 	 
	AGREED AREA OF
	 	81,876 rentable square feet, as mutually agreed by Landlord and Tenant
	PREMISES
	 	 
	 
	 	 
	FIXED RENT
	 	 

(1)

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Monthly Fixed	 
	 	 	 	 	 	 	 	 	 	 	Rent Per	 
	 	 	 	 	 	 	 	 	 	 	Rentable Square	 
	Lease Year	 	Per Annum	 	 	Per Month	 	 	Foot	 
	Months 1-12
	 	$	1,260,000.00	 	 	$	105,000.00	 	 	$2.10 (based upon 
imputed 50,000 rsf)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 13-24
	 	$	1,562,400.00	 	 	$	130,200.00	 	 	$2.17 (based upon 
imputed 60,000 rsf)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 25-36
	 	$	2,200,826.88	 	 	$	183,402.24	 	 	$	2.24	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 37-48
	 	$	2,288,859.96	 	 	$	190,738.33	 	 	$	2.33	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 49-60
	 	$	2,380,414.36	 	 	$	198,367.86	 	 	$	2.42	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 61-72
	 	$	2,475,630.89	 	 	$	206,302.57	 	 	$	2.52	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 73-84
	 	$	2,574,656.07	 	 	$	214,554.57	 	 	$	2.62	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Months 85-96
	 	$	2,677,641.03	 	 	$	223,136.75	 	 	$	2.73	 

	 	 	 
	ADDITIONAL RENT
	 	All sums other than Fixed Rent
payable by Tenant to Landlord under this Lease, including late
charges, overtime or excess service charges, damages, and interest
and other costs related to Tenant's failure to perform any of its obligations under this Lease.
	 
	 	 
	RENT
	 	Fixed Rent and Additional Rent, collectively.
	 
	 	 
	INTEREST RATE
	 	The lesser of (i) 4% per annum
above the then-current Base Rate, and (ii) the maximum rate permitted
by applicable Requirements.
	 
	 	 
	LETTER OF CREDIT
	 	$917,011.20
	 
	 	 
	SECURITY DEPOSIT
	 	$223,136.75
	 
	 	 
	TENANT’S ADDRESS FOR
	 	Until Tenant commences business operations from the Premises:
	NOTICES
	 	 
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	1 Circle Star Way, Suite 200
	 
	 	San Carlos, CA 94070
	 
	 	Attn: Mark A.  Culhane, EVP & CFO

(2)

 

	 	 	 
	 
	 	With copies to:
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	1 Circle Star Way, Suite 200
	 
	 	San Carlos, CA 94070
	 
	 	Attn: Michael J.  McAdam, VP, General Counsel
	 
	 	 
	 
	 	And
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	1 Circle Star Way, Suite 200
	 
	 	San Carlos, CA 94070
	 
	 	Attn: Facilities Manager
	 
	 	 
	 
	 	Thereafter:
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	One Franklin Parkway, Building 910
	 
	 	San Mateo, California 94403-1906
	 
	 	Attn: Mark A.  Culhane, EVP & CFO
	 
	 	 
	 
	 	With copies to:
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	One Franklin Parkway, Building 910
	 
	 	San Mateo, California 94403-1906
	 
	 	Attn: Michael J.  McAdam, VP, General Counsel
	 
	 	 
	 
	 	And
	 
	 	 
	 
	 	DemandTec, Inc.
	 
	 	One Franklin Parkway, Building 910
	 
	 	San Mateo, California 94403-1906
	 
	 	Attn: Facilities Manager
	 
	 	 
	LANDLORD’S ADDRESS FOR
	 	Franklin Templeton Companies, LLC
	NOTICES
	 	One Franklin Parkway
	 
	 	San Mateo, California  94403-1906
	 
	 	Attn:  Facility Manager
	 
	 	Facsimile Number: (650) 312-4891
	 
	 	 
	 
	 	With copies to:
	 
	 	 
	 
	 	Franklin Templeton Companies, LLC
	 
	 	One Franklin Parkway
	 
	 	San Mateo, CA 94403-1906
	 
	 	Attention: Michael J.  McCulloch
	 
	 	Facsimile Number: (650) 312-5830
	 
	 	 
	 
	 	And
	 
	 	 
	 
	 	Franklin Templeton Companies, LLC
	 
	 	One Franklin Parkway
	 
	 	San Mateo, CA 94403-1906
	 
	 	Attention: Corporate Secretary
	 
	 	Facsimile Number: (650) 525-3266

(3)

 

	 	 	 
	TENANT’S BROKER
	 	Cornish & Carey Commercial.
	 
	 	 
	LANDLORD’S BROKER
	 	Cornish & Carey Commercial.
	 
	 	 
	LANDLORD’S
	 	$265,000.
	CONTRIBUTION
	 	 

All
capitalized terms used in this Lease without definition are defined
in Exhibit B.

ARTICLE 2

PREMISES; TERM; RENT

     Section 2.1 Lease of Premises. Subject to the terms of this Lease, Landlord leases to Tenant
and Tenant leases from Landlord the Premises for the Term. In addition, Landlord grants to Tenant
the right to use, on a non-exclusive basis and in common with others, the Common Areas.

     Section 2.2 Commencement Date. Upon the Effective Date, the terms and provisions hereof shall
be fully binding on Landlord and Tenant. The Term of this Lease shall commence on the Commencement
Date. Unless sooner terminated or extended as hereinafter provided, the Term shall end on the
Expiration Date. If Landlord does not tender possession of the Premises to Tenant on or before the
Commencement Date or any other particular date, for any reason whatsoever, Landlord shall not be
liable for any damage thereby, this Lease shall not be void or voidable thereby, and the Term shall
not commence until the Commencement Date. Landlord shall be deemed to have tendered possession of
the Premises to Tenant upon the giving of notice by Landlord to Tenant stating that the Premises
are vacant, in the condition required by this Lease and available for Tenant’s occupancy. No
failure to tender possession of the Premises to Tenant on or before the Commencement Date shall
affect any other obligations of Tenant hereunder. For purposes of determining whether Tenant has
accepted possession of the Premises, Tenant shall be deemed to have done so when Tenant first moves
Tenant’s Property and/or any of its personnel into the Premises and/or commences construction,
except to the extent that Tenant is authorized in this Lease or by Landlord’s agreement to do any
of the foregoing without being deemed to have accepted possession of the Premises. Notwithstanding
anything set forth in this Section 2.2 to the contrary and without triggering any obligation to pay
Fixed Rent, Landlord shall grant Tenant access to the Premises on November 1, 2009 for purposes of
installing Tenant’s furniture, fixtures and equipment. Tenant understands and acknowledges that at
the time of such early entry the Initial Installations as described in the Work Letter may not be
Substantially Complete, and that Tenant shall coordinate such early entry with both Landlord’s
facility management team and with the Contractor, abide by all reasonable safety requirements of
the Contractor and to use its reasonable efforts to not delay or impede performance of the Initial
Installations.

     Section 2.3 Payment of Rent. Tenant shall pay to Landlord, without notice or demand, and
without any set-off, counterclaim, abatement or deduction whatsoever, except as may be expressly
set forth in this Lease, in lawful money of the United States (i) Fixed Rent in equal monthly
installments, in advance, on the first day of each month during the Term, commencing on the
Commencement Date, and (ii) Additional Rent, at the times and in the manner set forth in this
Lease. Landlord and Tenant agree and acknowledge that as set forth in Article 1, for purposes of
determining the Fixed Rent payable for the first 12 months of the Term, the Rentable Square Footage
shall be deemed to be 50,000 square feet and for purposes of determining the Fixed Rent for months
13 through 24 of the Term, the Rentable Square Footage of the Premises shall be deemed to be 60,000
square feet.

(4)

 

     Section 2.4 First Month’s Rent. Tenant shall pay one month’s Fixed Rent upon the execution of
this Lease (“Advance Rent”). If the Commencement Date is on the first day of a month, the Advance
Rent shall be credited towards the first month’s Fixed Rent payment. If the Commencement Date is
not the first day of a month, then on the Commencement Date Tenant shall pay Fixed Rent for the
period from the Commencement Date through the last day of such month, and the Advance Rent shall be
credited towards Fixed Rent for the next succeeding calendar month.

     Section 2.5 Shared Facilities. During the Term of this Lease, Tenant shall have the right to
use, in common with Landlord, its employees, tenants and invitees, certain shared amenities of the
Project which include the right to use the fitness center, cafeteria and recreation center and the
CARES Center located on the ground floor of Building 960 together with the sport courts located at
the Project (the “Shared Facilities”). The Shared Facilities shall expressly exclude the wellness
rooms located within the Project except for the wellness room located on the first floor of the
Building. Landlord acknowledges and agrees that the usable square footage of any of the Shared
Facilities shall not be included in the determination of the rentable square footage of either the
Premises or the Building. Tenant’s use of the Shared Facilities shall be subject to such rules and
regulations as Landlord may reasonably prescribe from time to time upon notice to Tenant and shall
be without any additional charge or cost therefore other than with respect to all food and
beverages consumed within the cafeteria. Attached hereto as Exhibit F-1 are Landlord’s
current rules and regulations for the Shared Facilities. Tenant understands that it shall not have
the right to use any of the personal computers which may be located within the Shared Facilities
and which are connected to Landlord’s network. In addition, Tenant shall have the right, at its
sole cost and expense, to arrange for on-Premises catering to be provided by the operator of the
cafeteria or any other provider. Landlord reserves the right to make all such changes, additions,
improvements and replacements as Landlord may elect, in its sole and absolute discretion and
nothing set forth herein in this Section 2.5 shall be deemed a covenant or representation that
Landlord shall not cease operation of all, or a portion of, the Shared Amenities during the Term.
In addition, Tenant shall have the right, without any additional cost therefore, and upon such
equitable basis as reasonably established by Landlord, to reserve and utilize such conference and
auditorium facilities as Landlord may operate at the Project from time to time, including, but not
limited to, the right not more than once (as determined on a non-cumulative basis) per month (and
subject to availability as reasonably determined by Landlord) to conduct corporate meetings and
client presentations within the large auditorium housed within Building 970. Tenant acknowledges
that during the Term the cafeteria shall not be open on Observed Holidays.

     Section 2.6 Right of First Offer. From and after the second anniversary of the Commencement
Date until the Expiration Date, Tenant is given an on-going right of first offer with respect to
any space (in each case, the “First Offer Space”) located on the first floor of the Building which
becomes available for lease by Landlord. Landlord covenants and agrees in connection with its
on-going leasing campaign for the first floor of the Building to use (except with respect to that
certain proposed lease with Paine and Partners covering approximately 7,242 Rentable Square Feet on
the first floor for a three year initial lease term) its commercially reasonable efforts to cause
any such leases executed from and after the Effective Date for all or any portion of the First
Offer Space to be for lease terms expiring no earlier than the second anniversary of the
Commencement Date and no later than the fourth anniversary thereof (the “Window Period”) and to use
its commercially reasonable efforts to have a unit of space of approximately 17,098 to 20,000
rentable square feet come available for lease by Tenant during the Window Period. As soon as
reasonably practical after Landlord determines that such First Offer Space will become available
for lease, Landlord shall send Tenant written notice (the “First Offer Space Notice”) advising
Tenant of the size and configuration of the First Offer Space, the date the First Offer Space shall
become part of the Premises (the “First Offer Space Commencement Date”) and the Fixed Rent which
Landlord proposes for the First Offer Space (the “Offer Space Fixed Rent”); which First Offer Space
Fixed Rent shall be 95% of the then current fair market value for comparable office space in
Comparable Buildings; provided that in no event shall the Offer Space Fixed Rent be greater than
110% of the then current Fixed rent for the Premises as of the anticipated First Offer Space
Commencement Date (the “Current Fixed Rent”) or less than the Current Fixed Rent. In addition,
Tenant shall be entitled to receive a tenant improvement allowance in an amount equal to the
product of $5.00 and the Rentable Square Footage of the First Offer Space (the “First Offer Space
Allowance”). Within 10 Business Days

(5)

 

of receipt of a First Offer Space Notice, Tenant shall advise Landlord in writing (the
“Acceptance Notice”) whether Tenant (i) accepts Landlord’s offer for the First Offer Space at the
First Offer Space Fixed Rent; or (ii) accepts Landlord’s offer for the First Offer Space, but
elects to have the determination of the First Offer Space Fixed be resolved by arbitration as
hereinafter provided. If Tenant fails to timely deliver an Acceptance Notice, Landlord shall be
free to lease the subject First Offer Space to any third party on such terms as Landlord elects;
provided, however, if Landlord has failed to lease such First Offer Space specified in the First
Offer Space Notice within six months after the date Landlord delivered the First Offer Space
Notice, Landlord shall again offer the subject First Offer Space to Tenant upon the terms and
conditions set forth in this Section 2.6. Tenant’s failure to provide an Acceptance Notice for
such First Offer Space shall not terminate Tenant’s rights to lease such First Offer Space as set
forth in this Section 2.6 if such First Offer Space again becomes available for lease, or with
respect to any other First Offer Space that becomes available for lease thereafter. If the First
Offer Space Fixed Rent has not been determined prior to the First Offer Space Commencement Date,
Tenant shall pay Fixed Rent in an amount equal to the First Offer Space Fixed Rent as determined by
Landlord (the “Interim Rent”). Upon final determination of the First Offer Space Fixed Rent,
Tenant shall commence paying such First Offer Space Fixed Rent as so determined, and within 30
days after such determination Tenant shall pay any deficiency in prior payments of First Offer
Space Fixed Rent or, if the First Offer Space Fixed Rent as so determined shall be less than the
Interim Rent, Tenant shall be entitled to a credit against the next succeeding installments of
Fixed Rent in an amount equal to the difference between each installment of Interim Rent and the
First Offer Space Fixed Rent as so determined which should have been paid for such installment
until the total amount of the over payment has been recouped. If Tenant disputes Landlord’s
determination of Fair Market Value pursuant to this Section 2.6, such dispute shall be determined
by a single arbitrator appointed in accordance with the American Arbitration Association Real
Estate Valuation Arbitration Proceeding Rules. The arbitrator shall be impartial and shall have
not less than 10 years’ experience in the County of San Mateo in a calling related to the leasing
of commercial office space in Comparable Buildings, and the fees of the arbitrator shall be shared
by Landlord and Tenant. Within 15 days following the appointment of the arbitrator, Landlord and
Tenant shall attend a hearing before the arbitrator at which each party shall submit a report
setting forth its determination of the Fair Market Value of the First Offer Space for the balance
of the Term (which in no event shall be less than the Current Fixed Rent or more than 110% of the
Current Fixed Rent), together with such information on comparable rentals and such other evidence
as such party shall deem relevant. The arbitrator shall, within 30 days following such hearing and
submission of evidence, render his or her decision by selecting the determination of Fair Market
Value submitted by either Landlord or Tenant (which shall be no less than the Current Fixed Rent
or more than 110% of the Current Fixed rent) which, in the judgment of the arbitrator, most nearly
reflects the Fair Market Value of the First Offer Space for the Renewal Term. The arbitrator shall
have no power or authority to select any Fair Market Value other than a Fair Market Value submitted
by Landlord or Tenant, and the decision of the arbitrator shall be final and binding upon Landlord
and Tenant. Notwithstanding the foregoing, if an Event of Default (as hereinafter defined) exists
on the date of giving the First Offer Notice, Tenant shall have no right to so expand the Premises;
or if an Event of Default exists on the date the Premises are to be expanded, the Premises shall
not be so expanded. The Term of this Lease with respect to the First Offer Space shall be
coterminous with the Premises.

     Section 2.7 Lease Rental Assumption. As of the Effective Date, Tenant is a subtenant under a
sublease (the “Existing Sublease”) for certain sublease premises located at One Circle Star Way,
San Carlos, California for a term expiring on February 28, 2010 and providing for a monthly full
service rent of $66,735.90. Landlord, at its option, to be exercised prior to the Commencement
Date shall have the right to either (a) reimburse Tenant monthly for the rent under the Existing
Sublease for the period from and after the Commencement Date through February 28, 2010 (which
rental reimbursement shall not exceed the maximum amount of $200,207.70); or (b) pay Tenant the
lump-sum amount of $200,207.70, in which case Landlord shall have no further duties, obligations or
liabilities pursuant to this Section 2.7.

     Section 2.8 Termination Right. Provided that no Event of Default then exists and the Premises
have not been theretofore expanded pursuant to Section 2.6 above such that an First Offer Space
Commencement Date occurs on or after the fourth anniversary of the Commencement Date, then

(6)

 

subject to the following terms and provisions, Tenant shall have a onetime option, exercisable
if at all by irrevocable notice to Landlord delivered at least six months prior to the effective
date of termination, to terminate this Lease effective on the day preceding the fifth anniversary
of the Commencement Date. If Tenant elects to so terminate this Lease, Tenant shall pay to
Landlord at the time of Tenant’s delivery of the notice of termination a termination fee (the
“Termination Fee”) in an amount equal to the sum of (a) $198,367.86; and (b) the unamortized
balance of the sum of (x) Landlord’s Contribution (and any First Offer Space Allowance provided
pursuant to Section 2.6 in connection with any First Offer Space) and (y) the amount of brokerage
commissions paid to Landlord’s Broker and Tenant’s Broker in connection with this Lease. If Tenant
fails to timely deliver to Landlord its notice of termination, together with its payment of the
Termination Fee, then Tenant’s rights, pursuant to this Section 2.8, shall lapse and be of no
further force or effect.

ARTICLE 3

USE AND OCCUPANCY

     Tenant shall use and occupy the Premises for the Permitted Uses and for no other purpose.
Tenant shall not use or occupy or permit the use or occupancy of any part of the Premises in a
manner constituting a Prohibited Use. If Tenant uses the Premises for a purpose constituting a
Prohibited Use, violating any Requirement, or causing the Building to be in violation of any
Requirement, then Tenant shall promptly discontinue such use upon notice of such violation.
Tenant, at its expense, shall procure and at all times maintain and comply with the terms and
conditions of all licenses and permits required for the lawful conduct of the Permitted Uses in the
Premises. Tenant shall have the right to utilize the existing access control /key card system
serving the Premises provided that all such access cards shall only be distributed to the employees
or consultants of Tenant working at the Premises. Tenant shall reimburse Landlord for all
reasonable costs incurred in distributing access cards to Tenant and for any replacements thereof.

ARTICLE 4

CONDITION OF THE PREMISES

     Tenant has inspected the Premises and agrees (a) to accept possession of the Premises
(including all data cabling located therein) in the condition existing on the Commencement Date “as
is”, and (b) that except for the Initial Installments and Landlord’s Contribution, Landlord has no
obligation to perform any work, supply any materials, incur any expense or make any alterations or
improvements to prepare the Premises for Tenant’s occupancy; provided, however, Landlord shall
ensure that on the Effective Date such cabling is in a neat and orderly condition and shall
complete such connections/terminals as may be necessary to ensure the functionality thereof.
Tenant’s occupancy of any part of the Premises shall be conclusive evidence, as against Tenant,
that Tenant has accepted possession of the Premises in its then current condition and at the time
such possession was taken, the Premises and the Building were in a good and satisfactory condition
as required by this Lease, subject to any punch-list items that may still need to be completed per
the Work Letter, as well as any repairs and/or retrofitting to the existing Premises, including
furniture, fixtures and equipment, as may be identified by the parties during a mutual walkthrough
of the Premises; provided that Landlord covenants and agrees that on the date of Landlord’s tender
of possession of the Premises to Tenant, the Premises shall be in good working condition,
including, but not limited to, the roof and Building Systems.

(7)

 

ARTICLE 5

ALTERATIONS

          Section 5.1 Tenant’s Alterations. (a) Tenant shall not make any alterations, additions or
other physical changes in or about the Premises (collectively,
“Alterations”) other than decorative
Alterations such as painting, wall coverings and floor coverings (collectively, “Decorative
Alterations”), without Landlord’s prior consent, which consent shall not be unreasonably withheld
if such Alterations (i) are non-structural and do not materially affect any Building Systems, (ii)
affect only the Premises and are not visible from outside of the Premises, (iii) do not affect the
certificate of occupancy issued for the Building or the Premises, and (iv) do not violate any
Requirement.

          (b) Plans and Specifications. Prior to making any Alterations, Tenant, at its expense, shall
(i) submit to Landlord for its approval, detailed plans and specifications (“Plans”) of each
proposed Alteration (other than Decorative Alterations), and with respect to any Alteration
affecting any Building System, evidence that the Alteration has been designed by, or reviewed and
approved by, Landlord’s designated engineer for the affected Building System, (ii) obtain all
permits, approvals and certificates required by any Governmental Authorities, (iii) furnish to
Landlord duplicate original policies or certificates of worker’s compensation (covering all persons
to be employed by Tenant, and Tenant’s contractors and subcontractors in connection with such
Alteration) and commercial general liability (including property damage coverage) insurance and
Builder’s Risk coverage (as described in Article 11) all in such form, with such companies, for
such periods and in such amounts as Landlord may reasonably require, naming Landlord as an
additional insured, and (iv) furnish to Landlord reasonably satisfactory evidence of Tenant’s
ability to complete and to fully pay for such Alterations (other than Decorative Alterations).
Tenant shall give Landlord not less than 5 Business Days’ notice prior to performing any Decorative
Alteration, which notice shall contain a description of such Decorative Alteration.

          (c) Governmental Approvals. Tenant, at its expense, shall, as and when required, promptly
obtain certificates of partial and final approval of such Alterations required by any Governmental
Authority and shall furnish Landlord with copies thereof, together with “as-built” Plans for such
Alterations.

     Section 5.2 Manner and Quality of Alterations. All Alterations shall be performed (a) in a
good and workmanlike manner and free from defects, (b) substantially in accordance with the Plans,
and by contractors reasonably approved by Landlord, (c) in compliance with all Requirements, the
terms of this Lease and all construction procedures and regulations then prescribed by Landlord,
and (d) at Tenant’s expense. All materials and equipment shall be of good quality and at least
equal to the applicable standards for the Building then reasonably established by Landlord, and no
such materials or equipment (other than Tenant’s Property) shall be subject to any lien or other
encumbrance. Upon completion of any Alterations hereunder, Tenant shall provide Landlord with
copies of all construction contracts, proof of payment for all labor and materials, and final
unconditional waivers of lien from all contractors, subcontractors, materialmen, suppliers and
others having lien rights with respect to such Alterations, in the form prescribed by California
law. In addition, Tenant shall cause a Notice of Completion to be recorded in the Office of the
Recorder of San Mateo County in accordance with Section 3093 of the Civil Code of the State of
California or any successor statute and shall timely give all notices required pursuant to Section
3259.5 of the Civil Code of the State of California or any successor statute.

     Section 5.3 Removal of Tenant’s Property. Tenant’s Property shall remain the property of
Tenant and Tenant may remove the same at any time on or before the Expiration Date. On or prior to
the Expiration Date, Tenant shall, unless otherwise directed by Landlord at the time of Landlord’s
consent to such Alterations, at Tenant’s expense, remove any Specialty Alterations and close up any
slab penetrations in the Premises. Tenant shall repair and restore, in a good and workmanlike
manner, any damage to the Premises or the Building caused by Tenant’s removal of any Alterations or
Tenant’s Property or by the closing of any slab penetrations, and upon default thereof, Tenant
shall reimburse Landlord for Landlord’s cost of repairing and restoring such damage. Any Specialty
Alterations or Tenant’s Property not so removed shall be deemed abandoned and Landlord may retain
or remove and

(8)

 

dispose of same, and repair and restore any damage caused thereby, at Tenant’s cost
and without accountability to Tenant. All other Alterations shall become Landlord’s property upon
termination of this Lease. Tenant shall have no obligation to remove any of the Initial
Installations as defined in the Work Letter attached hereto as Exhibit C.

     Section 5.4 Mechanic’s Liens. Tenant, at its expense, shall discharge any lien or charge
recorded or filed against the Real Property in connection with any work done or claimed to have
been done by or on behalf of, or materials furnished or claimed to have been furnished to, Tenant,
within 10 days after Tenant’s receipt of notice thereof by payment, filing the bond required by law
or otherwise in accordance with law.

     Section 5.5 Labor Relations. Tenant shall not employ, or permit the employment of, any
contractor, mechanic or laborer, or permit any materials to be delivered to or used in the
Building, if, in Landlord’s reasonable judgment, such employment, delivery or use will unreasonably
interfere or cause any conflict with other contractors, mechanics or laborers engaged in the
construction, maintenance or operation of the Building by Landlord, Tenant or others. If such
interference or conflict occurs, upon Landlord’s request, Tenant shall cause all contractors,
mechanics or laborers causing such interference or conflict to leave the Building immediately.

     Section 5.6 Tenant’s Costs. Tenant shall pay to Landlord, upon demand, all out-of-pocket
costs reasonably and actually incurred by Landlord in connection with Tenant’s Alterations,
including costs incurred in connection with (a) Landlord’s review of the Alterations (including
review of requests for approval thereof) and (b) the provision of Building personnel during the
performance of any Alteration, to operate elevators or otherwise to facilitate Tenant’s
Alterations. At Landlord’s request, Tenant shall deliver to Landlord reasonable supporting
documentation evidencing the hard and soft costs incurred by Tenant in designing and constructing
any Alterations.

     Section 5.7 Tenant’s Equipment. Tenant shall provide notice to Landlord prior to moving any
heavy machinery, heavy equipment, freight, bulky matter or fixtures (collectively, “Equipment”)
into or out of the Building and shall pay to Landlord any reasonable costs actually incurred by
Landlord in connection therewith. If such Equipment requires special handling, Tenant agrees (a)
to employ only persons holding all necessary licenses to perform such work, (b) all work performed
in connection therewith shall comply with all applicable Requirements and (c) such work shall be
done only during hours designated by Landlord.

     Section 5.8 Legal Compliance. The approval of Plans, or consent by Landlord to the making of
any Alterations, does not constitute Landlord’s representation that such Plans or Alterations
comply with any Requirements. Landlord shall not be liable to Tenant or any other party in
connection with Landlord’s approval of any Plans, or Landlord’s consent to Tenant’s performing any
Alterations. If any Alterations made by or on behalf of Tenant require Landlord to make any
alterations or improvements to any part of the Building in order to comply with any Requirements,
Tenant shall pay all costs and expenses incurred by Landlord in connection with such alterations or
improvements.

     Section 5.9 Floor Load. Tenant shall not place a load upon any floor of the Premises that
exceeds 80 pounds per square foot “live load”. Landlord reserves the right to reasonably designate
the position of all Equipment which Tenant wishes to place within the Premises, and to place
limitations on the weight thereof.

ARTICLE 6

REPAIRS

     Section 6.1 Landlord’s Repair and Maintenance. Landlord shall operate, maintain and, except
as provided in Section 6.2 hereof, make all necessary repairs (both structural and nonstructural)
to

(9)

 

(i) the Building, including, but not limited to, the roof and roof membrane, (ii) the Building
Systems and (iii)
the Common Areas, in conformance with standards applicable to Comparable Buildings and
otherwise in good condition.

     Section 6.2 Tenant’s Repair and Maintenance. Tenant shall promptly, at its expense and in
compliance with Article 5 including, without limitation, the requirement that any repairs affecting
any Building System be reviewed and approved by Landlord’s designated engineer for the affected
Building System, make all nonstructural repairs to the Premises and the fixtures, equipment and
appurtenances therein (including all electrical, plumbing, heating, ventilation and air
conditioning, sprinklers and life safety systems in and serving the Premises from the point of
connection to the Building Systems) (collectively, “Tenant Fixtures”) as and when needed to
preserve the Premises in good working order and condition, except for reasonable wear and tear and
damage which is Landlord’s obligation to repair pursuant to the express provisions of this Lease.
All damage to the Building or to any portion thereof, or to any Tenant Fixtures, requiring
structural or nonstructural repair caused by or resulting from any act, omission, neglect or
improper conduct of a Tenant Party or the moving of Tenant’s Property or Equipment into, within or
out of the Premises by a Tenant Party, shall be repaired at Tenant’s expense by (i) Tenant, if the
required repairs are nonstructural in nature and do not affect any Building System, or (ii)
Landlord, if the required repairs are structural in nature, involve replacement of exterior window
glass or affect any Building System. All Tenant repairs shall be of good quality utilizing new
construction materials.

     Section 6.3 Reserved Rights. Landlord reserves the right to make all changes, alterations,
additions, improvements, repairs or replacements to the Building and Building Systems, including
changing the arrangement or location of entrances or passageways, doors and doorways, corridors,
elevators, stairs, toilets or other Common Areas (collectively, “Work of Improvement”), as Landlord
deems necessary or desirable, and to take all materials into the Premises required for the
performance of such Work of Improvement, provided that (a) the level of any Building service shall
not decrease in any material respect from the level required of Landlord in this Lease as a result
thereof (other than temporary changes in the level of such services during the performance of any
such Work of Improvement), and (b) there is no material interference with Tenant’s access to or use
of the Premises. Landlord shall use reasonable efforts to minimize interference with Tenant’s use
and occupancy of the Premises during the performance of such Work of Improvement. There shall be
no Rent abatement or allowance to Tenant for a diminution of rental value, no actual or
constructive eviction of Tenant, in whole or in part, no relief from any of Tenant’s other
obligations under this Lease, and no liability on the part of Landlord by reason of inconvenience,
annoyance or injury to business arising from Landlord, Tenant or others performing, or failing to
perform, any Work of Improvement.

ARTICLE 7

[THIS ARTICLE 7 IS INTENTIONALLY DELETED]

ARTICLE 8

REQUIREMENTS OF LAW

     Section 8.1 Compliance with Requirements.

          (a) Tenant’s Compliance. Tenant, at its expense, shall comply with all Requirements
applicable to the Premises; provided, however, that Tenant shall not be obligated to comply with
any Requirements requiring any alterations to the Premises or Building unless the application of
such Requirements arises from (i) the specific manner and nature of Tenant’s use or occupancy of
the Premises, as distinct from general office use, (ii) Alterations made by Tenant, or (iii) a
breach by Tenant of any provisions of this Lease. Any such repairs or alterations shall be made at
Tenant’s expense (1) by Tenant in compliance with Article 5 if such repairs or alterations are
nonstructural and do not affect any Building System, or (2) by Landlord if such repairs or
alterations are structural or affect any Building

(10)

 

 System. If Tenant obtains knowledge of any failure to comply with any Requirements applicable
to the Premises, Tenant shall give Landlord prompt notice thereof.

          (b) Hazardous Materials. Tenant shall not cause or permit (i) any Hazardous Materials to be
brought into the Building, (ii) the storage or use of Hazardous Materials in any manner other than
in full compliance with any Requirements, or (iii) the escape, disposal or release of any Hazardous
Materials within or in the vicinity of the Building. Nothing herein shall be deemed to prevent
Tenant’s use of any Hazardous Materials customarily used in the ordinary course of office work,
provided such use is in accordance with all Requirements. Tenant shall be responsible, at its
expense, for all matters directly or indirectly based on, or arising or resulting from the presence
of Hazardous Materials in the Building which is caused or permitted by a Tenant Party. Tenant
shall provide to Landlord copies of all communications received by Tenant with respect to any
Requirements relating to Hazardous Materials, and/or any claims made in connection therewith.
Landlord or its agents may perform environmental inspections of the Premises at any time.

          (c) Landlord’s Compliance. Landlord, its sole cost and expense, shall comply with (or cause
to be complied with) all Requirements applicable to the Building which are not the obligation of
Tenant, to the extent that non-compliance would materially impair Tenant’s use and occupancy of the
Premises for the Permitted Uses.

          (d) Landlord’s Insurance. Tenant shall not cause or permit any action or condition that would
(i) invalidate or conflict with Landlord’s insurance policies, (ii) violate applicable rules,
regulations and guidelines of the Fire Department, Fire Insurance Rating Organization or any other
authority having jurisdiction over the Building, (iii) cause an increase in the premiums of
insurance for the Building over that payable with respect to Comparable Buildings, or (iv) result
in Landlord’s insurance companies’ refusing to insure the Building or any property therein in
amounts and against risks as reasonably determined by Landlord. If insurance premiums increase as
a result of Tenant’s failure to comply with the provisions of this Section 8.1, Tenant shall
promptly cure such failure and shall reimburse Landlord for the increased insurance premiums paid
by Landlord as a result of such failure by Tenant.

     Section 8.2 Fire and Life Safety. Tenant shall maintain in good order and repair the
sprinkler, fire-alarm and life-safety system in the Premises in accordance with this Lease
including, without limitation, the provisions of Section 6.2 respecting any repairs affecting any
Building System, the Rules and Regulations and all Requirements. If the Fire Insurance Rating
Organization or any Governmental Authority or any of Landlord’s insurers requires or recommends any
modifications and/or alterations be made or any additional equipment be supplied in connection with
the sprinkler system or fire alarm and life-safety system serving the Building by reason of
Tenant’s business, any Alterations performed by Tenant or the location of the partitions, Tenant’s
Property, or other contents of the Premises, Landlord (to the extent outside of the Premises) or
Tenant (to the extent within the Premises) shall make such modifications and/or Alterations, and
supply such additional equipment, in either case at Tenant’s expense.

ARTICLE 9

SUBORDINATION

     Landlord hereby represents to Tenant that as of the Effective Date, there is no Mortgage on
the Building. Tenant hereby acknowledges and agrees that subject to receipt of a commercially
reasonable form of subordination, nondisturbance and attornment agreement (an “SNDA”) this Lease is
and shall be subject to the lien of any future Mortgage encumbering all or any part of the
Building, or any part thereof. Landlord shall have the right, in its sole and absolute discretion,
to encumber the Building at any time during the Term. If Landlord elects to place a Mortgage upon
the Building, then Tenant shall, within 10 Business Days of Landlord’s request, execute such SNDA
as may be requested by such Mortgagee to document the subordination of this Lease to any Mortgage
encumbering the Building or any part thereof; provided such instruments contain commercially
reasonable nondisturbance protection. Upon Tenant’s

(11)

 

receipt of an SNDA, Tenant shall, upon request of the Mortgagee, be a party to an agreement
acknowledging and agreeing that, if the Mortgagee succeeds to the interest of Landlord, Tenant will
recognize such Mortgagee (or successor-in-interest of the Mortgagee) as its landlord under the
terms of this Lease. If Landlord elects to place a Mortgage on the Building, at Landlord’s
request, Tenant shall promptly enter into an amendment to this Lease as may be reasonable requested
by any such Mortgagee provided that in no event shall Tenant’s duties, liabilities or obligations
hereunder increase or Tenant’s rights set forth herein shall decrease, in any material respect.

ARTICLE 10

SERVICES

     Section 10.1 Electricity. Subject to any Requirements or any public utility rules or
regulations governing energy consumption, Landlord shall make or cause to be made, customary
arrangements with utility companies and/or public service companies to furnish electric current to
the Premises for Tenant’s use in accordance with the Design Standards. Tenant acknowledges that
the electrical capacity of the Building is approximately 18.85 watts per usable square foot and
that Tenant shall only be entitled to draw its pro rata portion of such electrical capacity. In
addition, if Landlord reasonably determines by the use of an electrical consumption survey or by
other reasonable means that Tenant is using electric current (including overhead fluorescent
fixtures, but excluding any electricity used in the provisioning of air conditioning furnished by
Landlord pursuant to Sections 10.4 and 10.5 or otherwise used to power Tenant’s equipment,
including computer servers, located in the data rooms (which shall include the server room and IT
lab), telephone and IDF rooms located within the Premises), as determined on a per square foot of
usable area basis, in excess of 120% of the number of kilowatt hours per square foot of usable area
used to power (when fully occupied) Landlord’s facility located at Building 970 of the Project, as
determined on an annualized basis (“Excess Electrical Usage”), then Landlord shall so notify Tenant
within 30 days of making such determination and Landlord and Tenant shall thereafter cooperate in
good faith to identify, within 30 days of Landlord’s notice, the source(s) of such Excess
Electrical Usage and any opportunities for reducing Tenant’s Excess Electrical usage. Tenant shall
thereafter have an additional period of 30 days to take any steps necessary to correct its Excess
Electrical Usage. Thereafter, if Tenant has failed to correct its Excess Electrical Usage, Landlord
shall have the right to install an electric current meter, sub-meter or check meter in the Premises
(a “Meter”) to measure the amount of electric current consumed in the Premises and to charge Tenant
for such Excess Electrical Usage. The cost of such Meter, special conduits, wiring and panels
needed in connection therewith and the installation, maintenance and repair thereof shall be paid
by Tenant. Tenant shall pay to Landlord, from time to time, but no more frequently than monthly,
for any such Excess Electrical Usage at the Premises. The rate to be paid by Tenant for submetered
electricity shall include any taxes or other charges in connection therewith.

     Section 10.2 Excess Electricity. Tenant shall at all times comply with the rules and
regulations of the utility company supplying electricity to the Building. Tenant shall not use any
electrical equipment which, in Landlord’s reasonable judgment, would exceed the capacity of the
electrical equipment serving the Premises. If Landlord determines that Tenant’s electrical
requirements necessitate installation of any additional risers, feeders or other electrical
distribution equipment (collectively, “Electrical Equipment”), or if Tenant provides Landlord with
evidence reasonably satisfactory to Landlord of Tenant’s need for excess electricity and requests
that additional Electrical Equipment be installed, Landlord shall, at Tenant’s expense, install
such additional Electrical Equipment, provided that Landlord, in its reasonable judgment,
determines that (a) such installation is practicable and necessary, (b) such additional Electrical
Equipment is permissible under applicable Requirements, and (c) the installation of such Electrical
Equipment will not cause permanent damage to the Building or the Premises, cause or create a
hazardous condition, entail excessive or unreasonable alterations, interfere with or limit
electrical usage by other tenants or occupants of the Building or exceed the limits of the
switchgear or other facilities serving the Building, or require power in excess of that available
from the utility company serving the Building.

(12)

 

     Section 10.3 Elevators. Landlord shall provide access to the Building and passenger elevator
service to the Premises 24 hours per day, 7 days per week. Landlord shall provide a freight
elevator serving the Premises (which freight elevator also serves as an additional passenger
elevator for the Building), available upon Tenant’s prior request, on a non-exclusive “first come,
first serve” basis with other Building tenants, on all Business Days from 7:00 a.m. to 6:00 p.m.,
which hours of operation are subject to change.

     Section 10.4 Heating, Ventilation and Air Conditioning. Landlord shall furnish to the
Premises heating, ventilation and air-conditioning (“HVAC”) in accordance with the Design Standards
set forth in Exhibit D during Ordinary Business Hours. Landlord shall have access to all
air-cooling, fan, ventilating and machine rooms and electrical closets and all other mechanical
installations of Landlord (collectively, “Mechanical Installations”), and Tenant shall not
construct partitions or other obstructions which may interfere with Landlord’s access thereto or
the moving of Landlord’s equipment to and from the Mechanical Installations. No Tenant Party shall
at any time enter the Mechanical Installations or tamper with, adjust, or otherwise affect such
Mechanical Installations. Landlord shall not be responsible if the HVAC System fails to provide
cooled or heated air, as the case may be, to the Premises in accordance with the Design Standards
by reason of (i) any equipment installed by, for or on behalf of Tenant, which has an electrical
load in excess of the average electrical load and human occupancy factors for the HVAC System as
designed, or (ii) any rearrangement of partitioning or other Alterations made or performed by, for
or on behalf of Tenant. Tenant shall lower the blinds when necessary because of the sun’s
position, whenever the HVAC System is in operation or as and when required by any Requirement.
Tenant shall cooperate with Landlord and shall abide by the rules and regulations which Landlord
may reasonably prescribe for the proper functioning and protection of the HVAC System.

     Section 10.5 HVAC. The Fixed Rent does not include any charge to Tenant for the furnishing of
any HVAC to the Premises during any periods other than as set forth in Section 10.4 (“Overtime
Periods”). If Tenant desires HVAC service during Overtime Periods, Tenant may electronically
activate such service (in 1 hour increments per half-floor of the Building) via one of the multiple
controllers located within the Premises. Tenant shall be solely responsible for the reasonable
cost of any after-hours HVAC ordered by Tenant’s employees. As of the Effective Date, the cost of
such overtime HVAC is $40.00 per hour per half-floor. Notwithstanding the foregoing, during each
calendar month of the Term, Tenant shall not be charged for the first 64 hours per half-floor of
after-hours HVAC ordered by Tenant during such calendar month provided that no unused portion of
such after-hours HVAC credit shall roll forward should Tenant’s usage during any such calendar
month be less than 64 hours per half-floor. Notwithstanding the foregoing, but subject to the
terms and provisions of Section 10.11, Landlord shall provide 24 hour per day/seven days per week
dedicated HVAC service to the data (which shall include the server room and IT lab), telephone and
IDF rooms located within the Premises, as well as electricity used to power Tenant’s equipment
(including computer servers) located in such rooms, without any additional charge therefor.

     Section 10.6 Cleaning. Landlord shall cause the Premises (excluding any portions thereof used
for the storage, preparation, service or consumption of food or beverages, as an exhibition area or
classroom, for storage, as a shipping room, mail room or similar purposes, for private bathrooms,
showers or exercise facilities, as a trading floor, or primarily for operation of computer, data
processing, reproduction, duplicating or similar equipment) to be cleaned, substantially in
accordance with the standards set forth in Exhibit E; provided that Landlord shall provide
day porter services to the break rooms and rest rooms within the Premises. Any areas of the
Premises which Landlord is not required to clean hereunder or which require additional cleaning
shall be cleaned, at Tenant’s expense, by Landlord’s cleaning contractor, at rates which shall be
competitive with rates of other cleaning contractors providing comparable services to Comparable
Buildings. Landlord’s cleaning contractor and its employees shall have access to the Premises at
all times except between 8:00 a.m. and 5:00 p.m. on weekdays which are not Observed Holidays.

(13)

 

     Section 10.7 Water. Landlord shall provide water in the core lavatories on each floor of the
Building and to the break rooms contained within the Premises. If Tenant requires water for any
additional purposes, Tenant shall pay for the cost of bringing water to the Premises and Landlord
may install a meter to measure the water. Tenant shall pay the cost of such installation, and for
all maintenance, repairs and replacements thereto, and for the reasonable charges of Landlord for
the water consumed.

     Section 10.8 Refuse Removal. Landlord shall provide refuse removal services at the Building
for ordinary office refuse and rubbish. Tenant shall pay to Landlord, Landlord’s reasonable charge
for such removal to the extent that the refuse generated by Tenant exceeds the refuse customarily
generated by general office tenants. Tenant shall not dispose of any refuse in the Common Areas,
and if Tenant does so, Tenant shall be liable for Landlord’s reasonable charge for such removal.
Tenant shall reasonably cooperate with any recycling programs which Landlord may institute from
time to time during the Term.

     Section 10.9 Directory. The lobby shall contain a static directory wherein the Building’s
tenants shall be listed. Tenant shall be permitted to list its name on such directory and shall be
permitted to install identifying signage on the entrance doorway to the Premises; which entry
signage shall be subject to Landlord’s approval, which approval shall not be unreasonably withheld.

     Section 10.10 Telecommunications. If Tenant requests that Landlord grant access to the
Building to a telecommunications service provider designated by Tenant for purposes of providing
telecommunications services to Tenant, Landlord shall use its good faith efforts to respond to such
request within five Business Days. Tenant acknowledges that nothing set forth in this Section
10.10 shall impose any affirmative obligation on Landlord to grant such request and that Landlord,
in its reasonable discretion, shall have the right to determine which telecommunications service
providers shall have access to Building facilities.

     Section 10.11 Service Interruptions. Landlord reserves the right to suspend any service when
necessary, by reason of Unavoidable Delays, accidents or emergencies, or for any Work of
Improvement which, in Landlord’s reasonable judgment, is necessary or appropriate, until such
Unavoidable Delay, accident or emergency shall cease or such Work of Improvement is completed and
Landlord shall not be liable for any interruption, curtailment or failure to supply services.
Landlord shall use reasonable efforts to minimize interference with Tenant’s use and occupancy of
the Premises as a result of any such interruption, curtailment or failure of or defect in such
service, or change in the supply, character and/or quantity of, electrical service, and to restore
any such services, remedy such situation and minimize any interference with Tenant’s business. The
exercise of any such right or the occurrence of any such failure by Landlord shall not constitute
an actual or constructive eviction, in whole or in part, entitle Tenant to any compensation,
abatement or diminution of Rent, relieve Tenant from any of its obligations under this Lease, or
impose any liability upon Landlord or any Indemnified Party by reason of inconvenience to Tenant,
or interruption of Tenant’s business, or otherwise. Landlord shall not be liable in any way to
Tenant for any failure, defect or interruption of, or change in the supply, character and/or
quantity of, electric service furnished to the Premises for any reason except if attributable to
the gross negligence or willful misconduct of Landlord. Except in the event of emergency, Landlord
shall use its commercially reasonable efforts to provide at least 48 hours prior notice before
conducting any Work of Improvement which will interrupt or curtail any Building services.

     Section 10.12 Mail. On two occasions during each Business Day, Landlord shall cause all mail
delivered to the Project for Tenant by the United Postal Services to be delivered to Tenant at the
Premises. Tenant shall be solely responsible for delivering all out-going mail to a designated
United Postal Service facility and Tenant shall arrange for all necessary over-night courier
pick-ups and deliveries.

     Section 10.13 Interior Signage. As soon as reasonably possible following the Effective Date,
Landlord, at its sole cost and expense, shall remove all signage from the Premises and the ground
floor Common Areas identifying Landlord, and Tenant shall have the right, at its sole cost and
expense and subject to Landlord’s approval (which approval shall not be unreasonably withheld) to
install interior identifying signage within the elevator lobbies of the second and third floors of
the Building. Landlord shall not be obligated to remove the carpet mat located at the entrance to
the Building lobby bearing Landlord’s name.

(14)

 

     Section 10.14 Monument Signage. Located proximate to the front entrance to the Building is an
existing monument sign (the “Existing Monument Sign”) identifying Landlord’s presence at the
Building. As soon as reasonably possible following the Effective Date, Landlord, at its sole cost
and expense, shall remove its name from the Existing Monument Sign and install identifying signage
(which may contain Tenant’s logo) on the Existing Monument Sign, which signage and logo will be as
requested by Tenant but shall be subject to Landlord’s approval (which approval shall not be
unreasonably withheld). In addition, and subject to receipt of all necessary approvals from the
City of San Mateo, Landlord shall install, at its sole cost and expense, an additional monument
sign (the “Additional Monument Sign”) in the location and of a size and configuration as more
particularly shown on Exhibit G attached hereto. The Additional Monument Sign shall
contain Tenant’s corporate name and logo. Landlord and Tenant shall each reasonably cooperate with
the other in pursuing all necessary approvals for the Additional Monument Sign from the City of San
Mateo. If the City of San Mateo requests any material changes to the Additional Monument Sign from
that shown on Exhibit G, all such changes shall be subject to the reasonable approval of Landlord’s
senior management.

     Section 10.15 Emergency Generator. In connection with the performance of the Initial
Installations as defined in the Work Letter, and subject to the waivers of liability as set forth
in Section 10.11 in connection with the occurrence of any utility service interruptions, Landlord
shall connect the Leased Premises to the existing back-up electrical generator. In addition,
Tenant shall have the right to connect certain items of equipment within the Premises to the
uninterrupted power supply (the “UPS”) located within the Building and owned, operated and
maintained by Landlord; it being understood and acknowledged that the UPS only provides for a total
of four 20 amp circuits for the entire Premises. During the Term of this Lease, Landlord shall use
its commercially reasonable efforts to keep such back-up generator and UPS in good condition and
repair, shall maintain a service contract with the local authorized manufacturer’s representative
for the emergency generator providing for periodic maintenance and repair in accordance with the
manufacturer’s recommendations and shall cause sufficient quantities of diesel fuel to be present
in the storage tank servicing such back-up generator; provided that Tenant acknowledges and agrees
that Landlord makes no representations, warranties or guarantees concerning the performance of such
back-up generator and/or UPS and Tenant further understands and acknowledges that upon the
occurrence of an event of Force Majeure causing a disruption in the electrical service to the
Project, Landlord may be unable to obtain sufficient quantities of fuel necessary to allow the
back-up generator to provide uninterrupted electrical service to such data and telephone systems
upon such inability to refuel the Project’s storage tanks and the expiry of the batteries powering
the UPS system.

ARTICLE 11

INSURANCE; PROPERTY LOSS OR DAMAGE

     Section 11.1 Tenant’s Insurance

          (a) Prior to the date Landlord delivers possession of the Premises to Tenant, and continuing
thereafter throughout the Term, Tenant, at its expense, shall obtain and maintain in full force and
effect the following insurance policies throughout the Term:

               (i) Commercial General Liability (CGL) Insurance on an occurrence basis covering liability
arising from premises operations, independent contractors, product-completed operations, personal
injury, advertising injury, bodily injury, death and/or property damage occurring in or about the
Building, under which Tenant is insured and Landlord shall be named as an additional insured (the
“Insured Parties”). Such insurance shall provide primary coverage without contribution from any
other insurance or self-insurance carried by or for the benefit of the Insured Parties, and such
insurance shall include blanket broad-form contractual liability coverage. The minimum limits of
liability applying exclusively to the Premises shall be a combined single limit with respect to
each occurrence in an amount of not less than $5,000,000. There shall be no deductible or
self-insurance without the prior written consent of Landlord (which consent shall not be
unreasonably withheld);

(15)

 

               (ii) All-Risk Commercial Property Insurance insuring Tenant’s Property (as defined in
Exhibit B) and the Above Building Standard Installations (as defined in Exhibit B),
for the full replacement cost thereof, having a deductible amount, if any, not in excess of $25,000
without the prior written consent of Landlord. The Insured Parties shall be included as loss
payee(s) with respect to the Above Building Standard Installations;

               (iii) Builder’s Risk during the performance of any Alteration, until completion thereof, on an
“All Risk” basis, including a permission to complete and occupy, and flood, including resulting
water damage, endorsements, for full replacement cost covering the interest of Landlord and Tenant
(and their respective contractors and subcontractors) in all work incorporated in the Building and
all materials and equipment in or about the Premises, or evidence of such coverage under the
property insurance policies set forth in (ii) above. The Insured Parties shall be named as
additional insureds;

               (iv) Workers’ Compensation Benefits Insurance and Employer’s Liability Insurance, with
Worker’s Compensation Benefits Insurance as required by law and Employer’s Liability Insurance with
a limit not less than $1,000,000 each accident for bodily injury by accident and $1,000,000 each
employee for bodily injury by disease. A deductible or self-insured retention for such policy
shall not exceed $25,000 without the prior written consent of Landlord; and

               (v) Business Interruption Insurance covering a minimum of one year of anticipated gross Rent.

          (b) All insurance required to be carried by Tenant shall contain a provision that the Insured
Parties receive 30 days’ prior written notice in advance of any termination or material change to
the policies that would affect the interest of any of the Insured Parties and shall be effected
under valid and enforceable policies issued by reputable insurers authorized to do business in the
State of California and rated in AM Best’s Insurance Guide, or any successor thereto as having an
AM Best’s Rating of “A-” or better and a Financial Size Category of at least “VIII” or better, or,
if such ratings are not then in effect, the equivalent thereof or such other financial rating as
Landlord may at any time consider appropriate.

          (c) On or prior to the Commencement Date, Tenant shall deliver to Landlord appropriate
certificates of insurance that evidence insurance required to be covered by this Article 11, the
waivers of subrogation required by Section 11.2 below, the Insured Parties are named as additional
insureds/loss payees as required pursuant to this Article 11, and the commercial general liability
is primary, non-contributory, and not excess of any other valid and collectible insurance.
Evidence of each renewal or replacement policies shall be delivered by Tenant to Landlord at least
ten (10) days after the expiration of the policies.

          (d) By requiring insurance herein, Landlord does not represent that coverage and limits will
necessarily be adequate to protect Tenant, and such coverage and limits shall not be deemed a
limitation on or transfer of Tenant’s liability under the indemnities granted to Landlord in this
contract.

          (e) All rights that inure to the benefit of the Landlord shall not be prejudiced by the
expiration of the Lease.

          (f) Tenant may satisfy the limits of liability required herein with a combination of umbrella
and/or excess policies of insurance where applicable, provided that such policies comply with all
of the provisions hereof (including, without limitation, with respect to scope of coverage and
naming of the Insured Parties as additional insureds).

     Section 11.2 Waiver of Subrogation. Landlord and Tenant shall have no liability to one another, or
to any insurer, by way of subrogation or otherwise, on account of any loss or damage to their
respective property, the Premises or its contents or the Building, regardless of whether such loss
or damage is caused by the negligence of Landlord or Tenant, arising out of any of the perils or casualties insured against by the property insurance
policies carried, or required to be carried, by the parties

(16)

 

pursuant to this Lease, but only to the extent covered by such insurance policies carried, or required to be carried, by the parties
pursuant to this Lease. In addition, Landlord and Tenant shall have no liability to one another
for any deductible amount carried under any policy. The insurance policies obtained by Landlord
and Tenant pursuant to this Lease, shall permit waivers of subrogation which the insurer may
otherwise have against the non-insuring party. In the event the policy or policies do not include
blanket waiver of subrogation prior to loss, either Landlord or Tenant shall, at the request of the
other party, arrange and deliver to the requesting party a waiver of subrogation endorsement in
such form and content as may reasonably be required by the requesting party or its insurer. Tenant
acknowledges that Landlord shall not carry insurance on, and shall not be responsible for, (i)
damage to any Above Building Standard Installations, (ii) Tenant’s Property, and (iii) any loss
suffered by Tenant due to interruption of Tenant’s business.

     Section 11.3 Restoration

          (a) If the Premises are damaged by fire or other casualty, or if the Building is damaged such
that Tenant is deprived of reasonable access to the Premises, the damage shall be repaired by
Landlord, to substantially the condition of the Premises prior to the damage, but Landlord shall
have no obligation to repair or restore (i) Tenant’s Property or (ii) except as provided in Section
11.3(b), any Above Building Standard Installations. So long as Tenant is not in default beyond
applicable grace or notice provisions in the payment or performance of its obligations under this
Section 11.3, and provided Tenant timely delivers to Landlord either Tenant’s Restoration Payment
(as hereinafter defined) or the Restoration Security (as hereinafter defined) or Tenant expressly
waives any obligation of Landlord to repair or restore any of Tenant’s Above Building Standard
Installations, then until the restoration of the Premises is Substantially Completed or would have
been Substantially Completed but for Tenant Delay, Fixed Rent shall be reduced in the proportion by
which the area of the part of the Premises which is not usable (or accessible ) and is not used by
Tenant bears to the total area of the Premises.

          (b) As a condition precedent to Landlord’s obligation to repair or restore any Above Building
Standard Installations, Tenant shall (i) pay to Landlord upon demand a sum (“Tenant’s Restoration
Payment”) equal to the amount, if any, by which (A) the cost, as estimated by a reputable
independent contractor designated by Landlord, of repairing and restoring all Alterations and
Initial Installations in the Premises to their condition prior to the damage, exceeds (B) the cost
of restoring the Premises with Building Standard Installations, or (ii) furnish to Landlord
security (the “Restoration Security”) in form and amount reasonably acceptable to Landlord to
secure Tenant’s obligation to pay all costs in excess of restoring the Premises with Building
Standard Installations. If Tenant shall fail to deliver to Landlord either (1) Tenant’s
Restoration Payment or the Restoration Security, as applicable, or (2) a waiver by Tenant, in form
satisfactory to Landlord, of all of Landlord’s obligations to repair or restore any of the Above
Building Standard Installations, in either case within 30 days after Landlord’s demand therefor,
Landlord shall have no obligation to restore any Above Building Standard Installations and Tenant’s
abatement of Fixed Rent, Tenant’s Tax Payment and Tenant’s Operating Payment shall cease when the
restoration of the Premises (other than any Above Building Standard Installations) is Substantially
Complete.

     Section 11.4 Landlord’s Termination Right. Notwithstanding anything to the contrary contained
in Section 11.3, (a) if the Premises are totally damaged or are rendered wholly untenantable, (b)
if the Building shall be so damaged that, in Landlord’s reasonable opinion, substantial alteration,
demolition, or reconstruction of the Building shall be required (whether or not the Premises are so
damaged or rendered untenantable), or (c) if the damage is not fully covered, except for deductible
amounts, by Landlord’s insurance policies, then in any of such events, Landlord may, not later than
60 days following the date of the damage, terminate this Lease by notice to Tenant. If this Lease
is so terminated, (a) the Term shall expire upon the 30th day after such notice is given, (b)
Tenant shall vacate the Premises and surrender the same to Landlord, (c) Tenant’s liability for
Rent shall cease as of the date of the damage, and (d) any prepaid Rent for any period after the
date of the damage shall be refunded by Landlord to Tenant.

(17)

 

     Section 11.5 Tenant’s Termination Right. If the Premises are totally damaged and are thereby
rendered wholly untenantable, or if the Building shall be so damaged that Tenant is deprived of
reasonable access to the Premises, and if Landlord elects to restore the Premises, Landlord shall,
within 60 days following the date of the damage, cause a contractor or architect selected by
Landlord to give notice (the “Restoration Notice”) to Tenant of the date by which such contractor
or architect estimates the restoration of the Premises (excluding any Above Building Standard
Installations) shall be Substantially Completed. If such date, as set forth in the Restoration
Notice, is more than 9 months from the date of such damage, then Tenant shall have the right to
terminate this Lease by giving notice (the “Termination Notice”) to Landlord not later than 30 days
following delivery of the Restoration Notice to Tenant. If Tenant delivers a Termination Notice,
this Lease shall be deemed to have terminated as of the date of the giving of the Termination
Notice, in the manner set forth in the second sentence of Section 11.4.

     Section 11.6 Final 18 Months. Notwithstanding anything to the contrary in this Article 11, if
any material damage to the Premises occurs during the final 18 months of the Term and the damage
cannot be repaired within 90 days from the date of such damage, either Landlord or Tenant may
terminate this Lease by notice to the other party within 30 days after the occurrence of such
damage and this Lease shall expire on the 30th day after the date of such notice.

     Section 11.7 Landlord’s Liability. Any Building employee to whom any property shall be
entrusted by or on behalf of Tenant shall be deemed to be acting as Tenant’s agent with respect to
such property and neither Landlord nor its agents shall be liable for any damage to such property,
or for the loss of or damage to any property of Tenant by theft or otherwise. None of the Insured
Parties shall be liable for any injury or damage to persons or property or interruption of Tenant’s
business resulting from fire or other casualty, any damage caused by other tenants or persons in
the Building or by construction of any private, public or quasi-public work, or any latent defect
in the Premises or in the Building (except that Landlord shall be required to repair the same to
the extent provided in Article 6). No penalty shall accrue for delays which may arise by reason of
adjustment of casualty insurance on the part of Landlord or Tenant, or for any Unavoidable Delays
arising from any repair or restoration of any portion of the Building, provided that Landlord shall
use reasonable efforts to minimize interference with Tenant’s use and occupancy of the Premises
during the performance of any such repair or restoration.

ARTICLE 12

EMINENT DOMAIN

     Section 12.1 Taking.

          (a) Total Taking. If all or substantially all of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public purpose (a “Taking”), this
Lease shall terminate and the Term shall end as of the date of the vesting of title and Rent shall
be prorated and adjusted as of such date.

          (b) Partial Taking. Upon a Taking of only a part of the Real Property, the Building or the
Premises then, except as hereinafter provided in this Article 12, this Lease shall continue in full
force and effect, provided that from and after the date of the vesting of title, Fixed Rent and
Tenant’s Proportionate Share shall be modified to reflect the reduction of the Premises and/or the
Building as a result of such Taking.

          (c) Landlord’s Termination Right. Whether or not the Premises are affected, Landlord may, by
notice to Tenant, within 60 days following the date upon which Landlord receives notice of the
Taking of all or a substantial portion of the Real Property, the Building or the Premises,
terminate this Lease.

(18)

 

          (d) Tenant’s Termination Right. If the part of the Real Property so Taken contains more than
20% of the total area of the Premises occupied by Tenant immediately prior to such Taking, or if,
by reason of such Taking, Tenant no longer has reasonable means of access to the Premises, Tenant
may terminate this Lease by notice to Landlord given within 30 days following the date upon which
Tenant is given notice of such Taking. If Tenant so notifies Landlord, this Lease shall end and
expire upon the 30th day following the giving of such notice. If a part of the Premises shall be
so Taken and this Lease is not terminated in accordance with this Section 12.1 Landlord, without
being required to spend more than it collects as an award, shall, restore that part of the Premises
not so Taken to a self-contained rental unit substantially equivalent (with respect to character,
quality, appearance and services) to that which existed immediately prior to such Taking, excluding
Tenant’s Property and any Above Building Standard Installations.

          (e) Apportionment of Rent. Upon any termination of this Lease pursuant to the provisions of
this Article 12, Rent shall be apportioned as of, and shall be paid or refunded up to and
including, the date of such termination.

     Section 12.2 Awards. Upon any Taking, Landlord shall receive the entire award for any such
Taking, and Tenant shall have no claim against Landlord or the condemning authority for the value
of any unexpired portion of the Term or Tenant’s Alterations; and Tenant hereby assigns to Landlord
all of its right in and to such award. Nothing contained in this Article 12 shall be deemed to
prevent Tenant from making a separate claim in any condemnation proceedings for the then value of
any Tenant’s Property or Above Building Standard Installations included in such Taking and for any
moving expenses, provided any such award is in addition to, and does not result in a reduction of,
the award made to Landlord.

     Section 12.3 Temporary Taking. If all or any part of the Premises is Taken temporarily during
the Term for any public or quasi-public use or purpose, Tenant shall give prompt notice to Landlord
and the Term shall not be reduced or affected in any way and Tenant shall continue to pay all Rent
payable by Tenant without reduction or abatement and to perform all of its other obligations under
this Lease, except to the extent prevented from doing so by the condemning authority, and Tenant
shall be entitled to receive any award or payment from the condemning authority for such use, which
shall be received, held and applied by Tenant as a trust fund for payment of the Rent falling due.

ARTICLE 13

ASSIGNMENT AND SUBLETTING

     Section 13.1 Consent Requirements.

          (a) No Transfers. Except as expressly set forth herein, Tenant shall not assign, mortgage,
pledge, encumber, or otherwise transfer this Lease, whether by operation of law or otherwise, and
shall not sublet, or permit, or suffer the Premises or any part thereof to be used or occupied by
others (whether for desk space, mailing privileges or otherwise), without Landlord’s prior consent
in each instance. Any assignment, sublease, mortgage, pledge, encumbrance or transfer in
contravention of the provisions of this Article 13 shall be void. If Tenant desires to install any
multi-tenant corridors to facilitate subleasing to more than one subtenant per floor, Tenant shall
be responsible, at its sole cost and expense, for restoring the Premises to the condition existing
as of the Effective Date upon the expiration or earlier termination of this Lease.

          (b) Collection of Rent. If, without Landlord’s consent, this Lease is assigned, or any part
of the Premises is sublet or occupied by anyone other than Tenant or this Lease is encumbered (by
operation of law or otherwise), then, at anytime Tenant is in monetary default, Landlord may
collect rent from the assignee, subtenant or occupant, and apply the net amount collected to the
Rent herein reserved. No such collection shall be deemed a waiver of the provisions of this
Article 13, an acceptance of the assignee, subtenant or occupant as tenant, or a release of Tenant
from the

(19)

 

performance of Tenant’s covenants hereunder, and in all cases Tenant shall remain fully liable
for its obligations under this Lease.

          (c) Further Assignment/Subletting. Landlord’s consent to any assignment or subletting shall
not relieve Tenant from the obligation to obtain Landlord’s consent to any further assignment or
subletting. In no event shall any permitted subtenant assign or encumber its sublease or further
sublet any portion of its sublet space, or otherwise suffer or permit any portion of the sublet
space to be used or occupied by others without Landlord’s consent as required pursuant to this
Article 13.

     Section 13.2 Tenant’s Notice. If Tenant desires to assign this Lease or sublet all or any
portion of the Premises (sometimes referred to herein as a “Transfer”), Tenant shall give notice
thereof to Landlord, which shall be accompanied by (a) with respect to an assignment of this Lease,
the date Tenant desires the assignment to be effective, and (b) with respect to a sublet of all or
a part of the Premises, a description of the portion of the Premises to be sublet, the commencement
date of such sublease and the rent per rentable square foot Tenant will ask for such portion of the
Premises (“Tenant’s Asking Rate”). Such notice shall be deemed an irrevocable offer from Tenant to
Landlord of the right, at Landlord’s option, (1) if the proposed transaction is a sublease for the
remainder of the Term, to terminate this Lease with respect to such space as Tenant proposes to
sublease (the “Partial Space”), upon the terms and conditions hereinafter set forth, or (2) if the
proposed transaction is an assignment of this Lease, to terminate this Lease with respect to the
entire Premises. Such option may be exercised by notice from Landlord to Tenant within 10 Business
Days after delivery of Tenant’s notice. If Landlord exercises its option to terminate this Lease
with respect to all or a portion of the Premises, (a) this Lease shall end and expire with respect
to all or a portion of the Premises, as the case may be, on the date that such assignment or
sublease was to commence, (b) Rent shall be apportioned, paid or refunded as of such date, (c)
Tenant, upon Landlord’s request, shall enter into an amendment of this Lease ratifying and
confirming such total or partial termination, and setting forth any appropriate modifications to
the terms and provisions hereof, and (d) Landlord shall be free to lease the Premises (or any part
thereof) to Tenant’s prospective assignee or subtenant or to any other party. Tenant shall pay all
costs to make the Partial Space a self-contained rental unit and to install any required Building
corridors.

     Section 13.3 Conditions to Assignment/Subletting.

          (a) If Landlord does not exercise Landlord’s option provided under Section 13.2, Landlord’s
consent to the proposed assignment or subletting shall not be unreasonably withheld or delayed.
Such consent shall be granted or denied within 10 Business Days after delivery to Landlord of (i) a
true and complete statement reasonably detailing the identity of the proposed assignee or subtenant
(“Transferee”), the nature of its business and its proposed use of the Premises, (ii) current
financial information with respect to the Transferee, including its most recent financial
statements, (iii) all of the terms of the proposed Transfer and the consideration therefor,
together with a copy of all existing executed and/or proposed documentation pertaining to the
proposed Transfer, including all existing operative documents to be executed to evidence such
Transfer or the agreements incidental or related to such Transfer, provided that Landlord shall
have the right to require Tenant to utilize Landlord’s standard Transfer documents in connection
with the documentation of such Transfer, and (iv) any other information Landlord may reasonably
request, provided that:

               (i) in Landlord’s reasonable judgment, the Transferee is engaged in a business or activity,
and the Premises will be used in a manner, which (1) is in keeping with the then standards of the
Building, (2) is for the Permitted Uses, and (3) does not violate any restrictions set forth in
this Lease, any Mortgage or Superior Lease or any negative covenant as to use of the Premises
required by any other lease in the Building;

               (ii) the Transferee is reputable with sufficient financial means to perform all of its
obligations under this Lease or the sublease, as the case may be;

               (iii) Tenant shall, upon demand, reimburse Landlord for all reasonable expenses incurred by
Landlord in connection with such assignment or sublease, including any

(20)

 

investigations as to the acceptability of the Transferee and all legal costs reasonably
incurred in connection with the granting of any requested consent, which costs shall not exceed
$1,500;

               (iv) the proposed Transfer is either a sublease or a non-collateral complete assignment;

               (v) the proposed Transfer would not cause Landlord to be in violation of any Requirements or
any other lease, or agreement to which Landlord is a party and would not give a tenant of the Real
Property a right to cancel its lease;

               (vi) the Transferee shall not be either a governmental agency or an instrumentality thereof,
nor shall the Transferee be entitled, directly or indirectly, to diplomatic or sovereign immunity,
regardless of whether the Transferee agrees to waive such diplomatic or sovereign immunity, and
shall be subject to the service of process in, and the jurisdiction of the courts of, the County of
San Mateo, and State of California; and

               (vii) Landlord has received assurances acceptable to Landlord in its reasonable discretion
that all past due amounts owing from Tenant to Landlord, if any, will be paid and all defaults on
the part of Tenant, if any, will be cured prior to the effective date of the proposed Transfer.

     The parties hereby agree, without limitation as to other reasonable grounds for withholding
consent, that it shall be reasonable under this Lease and under applicable law for Landlord to
withhold consent to any proposed Transfer based upon any of the foregoing criteria.

          (b) With respect to each and every subletting and/or assignment approved by Landlord under the
provisions of this Lease:

               (i) the form of the proposed assignment or sublease shall be reasonably satisfactory to
Landlord;

               (ii) no sublease shall be for a term ending later than the Expiration Date;

               (iii) no Transferee shall take possession of any part of the Premises until an executed
counterpart of such sublease or assignment has been delivered to Landlord and approved by Landlord
as provided in Section 13.4(a); and

               (iv) each sublease shall be subject and subordinate to this Lease and to the matters to which
this Lease is or shall be subordinate; and Tenant and each Transferee shall be deemed to have
agreed that upon the occurrence and during the continuation of an Event of Default hereunder,
Tenant has hereby assigned to Landlord, and Landlord may, at its option, accept such assignment of,
all right, title and interest of Tenant as sublandlord under such sublease, together with all
modifications, extensions and renewals thereof then in effect and such Transferee shall, at
Landlord’s option, attorn to Landlord pursuant to the then executory provisions of such sublease,
except that Landlord shall not be (A) liable for any previous act or omission of Tenant under such
sublease, (B) subject to any counterclaim, offset or defense not expressly provided in such
sublease or which theretofore accrued to such Transferee against Tenant, (C) bound by any previous
modification of such sublease not consented to by Landlord or by any prepayment of more than one
month’s rent, (D) bound to return such Transferee’s security deposit, if any, except to the extent
Landlord shall receive actual possession of such deposit and such Transferee shall be entitled to
the return of all or any portion of such deposit under the terms of its sublease, or (E) obligated
to make any payment to or on behalf of such Transferee, or to perform any work in the sublet space
or the Building, or in any way to prepare the subleased space for occupancy, beyond Landlord’s
obligations under this Lease. The provisions of this Section 13.3(b)(iv) shall be self-operative,
and no further instrument shall be required to give effect to this provision, provided that the
Transferee shall execute and deliver to Landlord any instruments Landlord may reasonably request to
evidence and confirm such subordination and attornment

(21)

 

     Section 13.4 Binding on Tenant; Indemnification of Landlord. Notwithstanding any assignment
or subletting or any acceptance of rent by Landlord from any Transferee, Tenant and any guarantor
shall remain fully liable for the payment of all Rent due and for the performance of all the
covenants, terms and conditions contained in this Lease on Tenant’s part to be observed and
performed, and any default under any term, covenant or condition of this Lease by any Transferee or
anyone claiming under or through any Transferee shall be deemed to be a default under this Lease by
Tenant. Tenant shall indemnify, defend, protect and hold harmless Landlord from and against any
and all Losses resulting from any claims that may be made against Landlord by the Transferee or
anyone claiming under or through any Transferee or by any brokers or other persons or entities
claiming a commission or similar compensation in connection with the proposed assignment or
sublease, irrespective of whether Landlord shall give or decline to give its consent to any
proposed assignment or sublease, or if Landlord shall exercise any of its options under this
Article 13.

     Section 13.5 Profits. If Tenant enters into any assignment or sublease permitted hereunder or
consented to by Landlord, Tenant shall, within 60 days of Landlord’s consent to such assignment or
sublease (or if such assignment or sublease is permitted hereunder without Landlord’s prior
consent, within 60 days of the effective date of such assignment or sublease), deliver to Landlord
a list of Tenant’s reasonable third-party brokerage fees, legal fees and architectural fees paid or
to be paid in connection with such transaction, and the amount of any tenant improvement
allowances, leasing commissions, free rent and other reasonable concessions as may be granted by
Tenant, and in the case of any sublease, any actual costs incurred by Tenant in separately demising
the sublet space (collectively, “Transaction Costs”), together with a list of all of Tenant’s
Property to be transferred to such Transferee; provided, however, that Transaction Costs shall not
include any rent paid by Tenant to Landlord, including with respect to the period Tenant is
marketing the Premises or any portion thereof for sublease. Tenant shall deliver to Landlord
evidence of the payment of such Transaction Costs promptly after the same are paid. In
consideration of such assignment or subletting, Tenant shall pay to Landlord:

          (a) In the case of an assignment, on the effective date of the assignment, 50% of all sums and
other consideration paid to Tenant by the Transferee for or by reason of such assignment (including
key money, bonus money and any sums paid for services rendered by Tenant to the Transferee in
excess of fair market value for such services and sums paid for the sale or rental of Tenant’s
Property, less the then fair market or rental value thereof, as reasonably determined by Landlord)
after first deducting the Transaction Costs; or

          (b) In the case of a sublease, 50% of any consideration payable under the sublease to Tenant
by the Transferee which exceeds on a per square foot basis the Fixed Rent accruing during the term
of the sublease in respect of the sublet space (together with any sums paid for services rendered
by Tenant to the Transferee in excess of fair market value for such services and sums paid for the
sale or rental of Tenant’s Property, less the then fair market rental value thereof, as reasonably
determined by Landlord) after first deducting the Transaction Costs. The sums payable under this
clause shall be paid by Tenant to Landlord monthly as and when paid by the subtenant to Tenant.

     The amount payable under this Section 13.7 with respect to any particular Transfer is
sometimes referred to herein as the “Transfer Premium.” Landlord or its authorized representatives
shall have the right at all reasonable times to audit the books, records and papers of Tenant
relating to any Transfer, and shall have the right to make copies thereof.

     Section 13.6 Transfers.

          (a) Related Entities. If Tenant is a legal entity, the transfer (by one or more transfers),
directly or indirectly, by operation of law or otherwise, of a majority of the stock or other
beneficial ownership interest in Tenant or of all or substantially all of the assets of Tenant
(collectively, “Ownership Interests”) shall be deemed a voluntary assignment of this Lease;
provided, however, that the provisions of this Article 13 shall not apply to the transfer of
Ownership Interests in Tenant if and so long as Tenant is publicly traded on a nationally
recognized stock exchange. For purposes of this Article the term “transfers” shall be deemed to
include (x) the issuance of new Ownership Interests which results

(22)

 

in a majority of the Ownership Interests in Tenant being held by a person or entity which does
not hold a majority of the Ownership Interests in Tenant on the Effective Date (y) the sale,
mortgage, hypothecation or pledge of more than an aggregate of 50% of Tenant’s net assets, and (z)
except as provided below, the sale or transfer of all or substantially all of the assets of Tenant
in one or more transactions or the merger, consolidation or conversion of Tenant into or with
another business entity. The provisions of Sections 13.1 and 13.2 shall not apply to transactions
with a business entity into or with which Tenant is merged, consolidated or converted or to which
all or substantially all of Tenant’s assets are transferred so long as (i) such transfer was made
for a legitimate independent business purpose and not for the purpose of transferring this Lease,
(ii) the successor to Tenant has a tangible net worth computed in accordance with generally
accepted accounting principles consistently applied (and excluding goodwill, organization costs and
other intangible assets) that is sufficient to meet the obligations of Tenant under this Lease and
is at least equal to the net worth of Tenant immediately prior to such merger, consolidation,
conversion or transfer, (iii) proof reasonably satisfactory to Landlord of such net worth is
delivered to Landlord at least 10 days prior to the effective date of any such transaction (unless
such disclosure is prohibited by law), (iv) any such transfer shall be subject and subordinate to
all of the terms and provisions of this Lease, and the transferee shall assume, in a written
document reasonably satisfactory to Landlord and delivered to Landlord upon or prior to the
effective date of such transfer, all the obligations of Tenant under this Lease, (v) Tenant and any
guarantor shall remain fully liable for all obligations to be performed by Tenant under this Lease,
and (vi) such transfer does not cause Landlord to be in default under any existing lease at the
Real Property. Tenant may also, upon prior notice to Landlord and without Landlord’s consent,
assign to or permit any business entity which controls, is controlled by, or is under common
control with the original Tenant (a “Related Entity”) to sublet all or part of the Premises for any
Permitted Uses, provided the Related Entity is of a character and engaged in a business which is in
keeping with the standards for the Building and for so long as such entity remains a Related
Entity. The provisions of Sections 13.1 and 13.2 shall not apply to an assignment or sublease to a
Related Entity. Such sublease shall not be deemed to vest in any such Related Entity any right or
interest in this Lease nor shall it relieve, release, impair or discharge any of Tenant’s
obligations hereunder. For the purposes hereof, “control” shall be deemed to mean ownership of not
less than 50% of all of the Ownership Interests of such corporation or other business entity.
Notwithstanding the foregoing, Tenant shall have no right to assign this Lease or sublease all or
any portion of the Premises without Landlord’s consent pursuant to this Section 13.6 if an Event of
Default by Tenant exists under this Lease.

          (b) Applicability. The limitations set forth in this Section 13.6 shall apply to
Transferee(s) and guarantor(s) of this Lease, if any, and any transfer by any such entity in
violation of this Section 13.6 shall be a transfer in violation of Section 13.1.

          (c) Modifications, Takeover Agreements. Any modification, amendment or extension of a
sublease and/or any other agreement by which a landlord of a building other than the Building or
its affiliate agrees to assume the obligations of Tenant under this Lease shall be deemed a
sublease for the purposes of Section 13.1 hereof.

     Section 13.7 Assumption of Obligations. No assignment or transfer shall be effective unless
and until the Transferee executes, acknowledges and delivers to Landlord an agreement in form and
substance reasonably satisfactory to Landlord whereby the Transferee (a) assumes Tenant’s
obligations under this Lease and (b) agrees that, notwithstanding such assignment or transfer, the
provisions of Section 13.1 hereof shall be binding upon it in respect of all future assignments and
transfers.

     Section 13.8 Tenant’s Liability. The joint and several liability of Tenant and any
successors-in-interest of Tenant and the due performance of Tenant’s obligations under this Lease
shall not be discharged, released or impaired by any agreement or stipulation made by Landlord, or
any grantee or assignee of Landlord, extending the time, or modifying any of the terms and
provisions of this Lease, or by any waiver or failure of Landlord, or any grantee or assignee of
Landlord, to enforce any of the terms and provisions of this Lease.

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     Section 13.9 Listings in Building Directory. The listing of any name other than that of
Tenant on the doors of the Premises, the Building directory or elsewhere shall not vest any right
or interest in this Lease or in the Premises, nor be deemed to constitute Landlord’s consent to any
assignment or transfer of this Lease or to any sublease of the Premises or to the use or occupancy
thereof by others. Any such listing shall constitute a privilege revocable in Landlord’s
discretion by notice to Tenant.

     Section 13.10 Lease Disaffirmance or Rejection. If at any time after an assignment by Tenant
named herein, this Lease is not affirmed or is rejected in any bankruptcy proceeding or any similar
proceeding, or upon a termination of this Lease due to any such proceeding, Tenant named herein,
upon request of Landlord given after such disaffirmance, rejection or termination (and actual
notice thereof to Landlord in the event of a disaffirmance or rejection or in the event of
termination other than by act of Landlord), shall (a) pay to Landlord all Rent and other charges
due and owing by the assignee to Landlord under this Lease to and including the date of such
disaffirmance, rejection or termination, and (b) as “tenant,” enter into a new lease of the
Premises with Landlord for a term commencing on the effective date of such disaffirmance, rejection
or termination and ending on the Expiration Date, at the same Rent and upon the then executory
terms, covenants and conditions contained in this Lease, except that (i) the rights of Tenant named
herein under the new lease shall be subject to the possessory rights of the assignee under this
Lease and the possessory rights of any persons or entities claiming through or under such assignee
or by virtue of any statute or of any order of any court, (ii) such new lease shall require all
defaults existing under this Lease to be cured by Tenant named herein with due diligence, and (iii)
such new lease shall require Tenant named herein to pay all Rent which, had this Lease not been so
disaffirmed, rejected or terminated, would have become due under the provisions of this Lease
after the date of such disaffirmance, rejection or termination with respect to any period prior
thereto. If Tenant named herein defaults in its obligations to enter into such new lease for a
period of 10 days after Landlord’s request, then, in addition to all other rights and remedies by
reason of default, either at law or in equity, Landlord shall have the same rights and remedies
against Tenant named herein as if it had entered into such new lease and such new lease had
thereafter been terminated as of the commencement date thereof by reason of Tenant’s default
thereunder.

ARTICLE 14

ACCESS TO PREMISES

     Section 14.1 Landlord’s Access

          (a) Landlord, Landlord’s agents and utility service providers servicing the Building may
erect, use and maintain concealed ducts, pipes and conduits in and through the Premises provided
such use does not cause the usable area of the Premises to be reduced beyond a de minimis amount.
Landlord shall promptly repair any damage to the Premises caused by any work performed pursuant to
this Article 14.

          (b) Landlord and any other party designated by Landlord and their respective agents shall have
the right to enter the Premises at all reasonable times, upon reasonable notice (which notice may
be oral) except in the case of emergency (in which event no notice shall be required), and subject
to Tenant’s reasonable security precautions and the right of Tenant to accompany Landlord at all
times, to examine the Premises (excluding Tenant’s vaults and safes, or special security areas,
designated in advance), to show the Premises to prospective purchasers, Mortgagees, or tenants and
their respective agents and representatives or others and to perform Work of Improvement to the
Premises or the Building. In addition, Landlord’s janitorial provider and day porters shall have
the right to access the Premises, at all reasonable times and without notice to Tenant in
accordance with the terms of this Lease, in order to provide the services as described in 9.

          (c) All parts (except surfaces facing the interior of the Premises) of all walls, windows and
doors bounding the Premises, all balconies, terraces and roofs adjacent to the Premises, all

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space in or adjacent to the Premises used for shafts, stacks, stairways, mail chutes, conduits
and other mechanical facilities, Building Systems, Building facilities and Common Areas are not
part of the Premises, and Landlord shall have the use thereof and access thereto through the
Premises for the purposes of Building operation, maintenance, alteration and repair.

     Section 14.2 Building Name. Landlord has the right at any time to change the name, number or
designation by which the Building is commonly known.

     Section 14.3 Light and Air. If at any time any windows of the Premises are temporarily
darkened or covered over by reason of any Work of Improvement, any of such windows are permanently
darkened or covered over due to any Requirement or there is otherwise a diminution of light, air or
view by another structure which may hereafter be erected (whether or not by Landlord), Landlord
shall not be liable for any damages and Tenant shall not be entitled to any compensation or
abatement of any Rent, nor shall the same release Tenant from its obligations hereunder or
constitute an actual or constructive eviction.

ARTICLE 15

DEFAULT

     Section 15.1 Tenant’s Defaults. Each of the following events shall be an “Event of Default”
hereunder:

          (a) Tenant fails to pay within three (3) business days of written notice that any installment
of Rent has not been paid when due; or

          (b) Tenant fails to observe or perform any other term, covenant or condition of this Lease and
such failure continues for more than 30 days (or 3 Business Days with respect to a failure under
Article 3, Article 9 or Section 26.10) after notice by Landlord to Tenant of such default, or if
such default (other than a default under Article 3, Article 9 or Section 26.10) is of a nature that
it cannot be completely remedied within 30 days, failure by Tenant to commence to remedy such
failure within said 30 days, and thereafter diligently prosecute to completion all steps necessary
to remedy such default, provided in all events the same is completed within 90 days; or

          (c) if Landlord applies or retains any part of the Security Deposit held by it hereunder, and
Tenant fails to deposit with Landlord the amount so applied or retained by Landlord, or if Landlord
draws on any Letter of Credit (as hereinafter defined) in part or in whole, and Tenant fails to
provide Landlord with a replacement Letter of Credit, within 5 days after notice by Landlord to
Tenant stating the amount applied, retained or drawn, as applicable; or

          (d) Tenant files a voluntary petition in bankruptcy or insolvency, or is adjudicated a
bankrupt or insolvent, or files any petition or answer seeking any reorganization, liquidation,
dissolution or similar relief under any present or future federal bankruptcy act or any other
present or future applicable federal, state or other statute or law, or makes an assignment for the
benefit of creditors or seeks or consents to or acquiesces in the appointment of any trustee,
receiver, liquidator or other similar official for Tenant or for all or any part of Tenant’s
property; or

          (e) A court of competent jurisdiction shall enter an order, judgment or decree adjudicating
Tenant bankrupt, or appointing a trustee, receiver or liquidator of Tenant, or of the whole or any
substantial part of its property, without the consent of Tenant, or approving a petition filed
against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the
United States, as now in effect or hereafter amended, or any state thereof, and such order,
judgment or decree shall not be vacated or set aside or stayed within 60 days from the date of
entry thereof.

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     The notice periods provided herein are in lieu of, and not in addition to, any notice periods
provided by law.

     Section 15.2 Landlord’s Remedies

          (a) Upon the occurrence of an Event of Default, Landlord, at its option, and without limiting
the exercise of any other right or remedy Landlord may have on account of such Event of Default,
and without any further demand or notice, may give to Tenant 3 days’ notice of termination of this
Lease, in which event this Lease and the Term shall come to an end and expire (whether or not the
Term shall have commenced) upon the expiration of such 3 day period with the same force and effect
as if the date set forth in the notice was the Expiration Date stated herein; and Tenant shall then
quit and surrender the Premises to Landlord, but Tenant shall remain liable for damages as provided
in this Article 15, and/or, to the extent permitted by law, Landlord may remove all persons and
property from the Premises, which property shall be stored by Landlord at a warehouse or elsewhere
at the risk, expense and for the account of Tenant.

          (b) If Landlord elects to terminate this Lease, pursuant to Section 1951.2 of the California
Civil Code, Landlord shall be entitled to recover from Tenant the aggregate of:

                    (i) The worth at the time of award of the unpaid rent earned as of the date of the termination
hereof;

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

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

                    (iv) Any other amount necessary to compensate Landlord for the detriment proximately caused by
Tenant’s failure to perform its obligations under this Lease or which, in the ordinary course of
things, would be likely to result therefrom; and

                    (v) Any other amount which Landlord may hereafter be permitted to recover from Tenant to
compensate Landlord for the detriment caused by Tenant’s default.

     For the purposes of this Section 15.2(b), “rent” shall be deemed to be and to mean all sums of
every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord
or to others, the “time of award” shall mean the date upon which the judgment in any action brought
by Landlord against Tenant by reason of such Event of Default is entered or such earlier date as
the court may determine; the “worth at the time of award” of the amounts referred to in Sections
15.2(b)(i) and 15.2(b)(ii) shall be computed by allowing interest on such amounts at the Interest
Rate; and the “worth at the time of award” of the amount referred to in Section 15.2(b)(iii) shall
be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus 1% per annum. Tenant agrees that such charges shall be
recoverable by Landlord under California Code of Civil Procedure Section 1174(b) or any similar,
successor or related provision of law.

     Section 15.3 Recovering Rent as It Comes Due. Upon any Event of Default, in addition to any
other remedies available to Landlord at law or in equity or under this Lease, Landlord shall have
the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect
after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right
to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not
elect to terminate this Lease, Landlord may, from time to time, enforce all of its rights and
remedies under this Lease, including the right to recover all Rent as it becomes due. Such remedy
may be exercised by Landlord without

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prejudice to its right thereafter to terminate this Lease in
accordance with the other provisions contained in this Article 15. Landlord’s reentry to perform
acts of maintenance or preservation of, or in connection with efforts to relet, the Premises, or
any portion thereof, or the appointment of a receiver upon Landlord’s initiative to protect
Landlord’s interest under this Lease shall not terminate Tenant’s right to possession of the
Premises or any portion thereof and, until Landlord elects to terminate this Lease, this Lease
shall continue in full force and Landlord may pursue all its remedies hereunder. Nothing in this
Article 15 shall be deemed to affect Landlord’s right to indemnification, under the indemnification
clauses contained in this Lease, for Losses arising from events occurring prior to the termination
of this Lease.

     Section 15.4 Reletting on Tenant’s Behalf. If Tenant abandons the Premises or if Landlord
elects to reenter or takes possession of the Premises pursuant to any legal proceeding or pursuant
to any notice provided by Requirements, and until Landlord elects to terminate this
Lease, Landlord may, from time to time, without terminating this Lease, recover all Rent as it
becomes due pursuant to Section 15.3 and/or relet the Premises or any part thereof for the account
of and on behalf of Tenant, on any terms, for any term (whether or not longer than the Term), and
at any rental as Landlord in its reasonable discretion may deem advisable, and Landlord may make
any Work of Improvement to the Premises in connection therewith. Tenant hereby irrevocably
constitutes and appoints Landlord as its attorney-in-fact, which appointment shall be deemed
coupled with an interest and shall be irrevocable, for purposes of reletting the Premises pursuant
to the immediately preceding sentence. If Landlord elects to so relet the Premises on behalf of
Tenant, then rentals received by Landlord from such reletting shall be applied:

          (a) First, to reimburse Landlord for the costs and expenses of such reletting (including costs
and expenses of retaking or repossessing the Premises, removing persons and property therefrom,
securing new tenants, and, if Landlord maintains and operates the Premises, the costs thereof) and
necessary or reasonable Work of Improvement.

          (b) Second, to the payment of any indebtedness of Tenant to Landlord other than Rent due and
unpaid hereunder.

          (c) Third, to the payment of Rent due and unpaid hereunder, and the residue, if any, shall be
held by Landlord and applied in payment of other or future obligations of Tenant to Landlord as the
same may become due and payable.

     Should the rentals received from such reletting, when applied in the manner and order
indicated above, at any time be less than the total amount owing from Tenant pursuant to this
Lease, then Tenant shall pay such deficiency to Landlord, and if Tenant does not pay such
deficiency within 5 days of delivery of notice thereof to Tenant, Landlord may bring an action
against Tenant for recovery of such deficiency or pursue its other remedies hereunder or under
California Civil Code Section 1951.8, California Code of Civil Procedure Section 1161 et seq., or
any similar, successor or related Requirements.

     Section 15.5 General

          (a) All rights, powers and remedies of Landlord hereunder and under any other agreement now or
hereafter in force between Landlord and Tenant shall be cumulative and not alternative and shall be
in addition to all rights, powers and remedies given to Landlord at law or in equity. The exercise
of any one or more of such rights or remedies shall not impair Landlord’s right to exercise any
other right or remedy including any and all rights and remedies of Landlord under California Civil
Code Section 1951.8, California Code of Civil Procedure Section 1161 et seq., or any similar,
successor or related Requirements.

          (b) If, after Tenant’s abandonment of the Premises, Tenant leaves behind any of Tenant’s
Property, then Landlord shall store such Tenant’s Property at a warehouse or any other location at
the risk, expense and for the account of Tenant, and such property shall be released only upon
Tenant’s payment of such charges, together with moving and other costs relating thereto and all
other sums due and owing under this Lease. If Tenant does not reclaim such Tenant’s Property
within the period permitted by law, Landlord may sell such Tenant’s
Property in accordance with law and apply the

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proceeds of such sale to any sums due and owing
hereunder, or retain said Property, granting Tenant credit against sums due and owing hereunder for
the reasonable value of such Property.

          (c) To the extent permitted by law, Tenant hereby waives all provisions of, and protections
under, any Requirement to the extent same are inconsistent and in conflict with specific terms and
provisions hereof.

     Section 15.6 Interest. If any payment of Rent is not paid when due, interest shall accrue on
such payment, from the date such payment became due until paid at the Interest Rate. Tenant
acknowledges that late payment by Tenant of Rent will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation, processing and accounting charges,
and late charges that may be imposed on Landlord by the terms of any note secured by a Mortgage
covering the Premises. Therefore, in addition to interest, if any amount is not paid when due, a
late charge equal to 5% of such amount shall be assessed; provided, however, that on 2 occasions
during any calendar year of the Term, Landlord shall give Tenant notice of such late payment and
Tenant shall have a period of 5 days thereafter in which to make such payment before any late
charge is assessed. Such interest and late charges are separate and cumulative and are in addition
to and shall not diminish or represent a substitute for any of Landlord’s rights or remedies under
any other provision of this Lease..

     Section 15.7 Other Rights of Landlord. If Tenant fails to pay any Additional Rent when due,
Landlord, in addition to any other right or remedy, shall have the same rights and remedies as in
the case of a default by Tenant in the payment of Fixed Rent. If Tenant is in arrears in the
payment of Rent, Tenant waives Tenant’s right, if any, to designate the items against which any
payments made by Tenant are to be credited, and Landlord may apply any payments made by Tenant to
any items Landlord sees fit, regardless of any request by Tenant. Landlord reserves the right,
without liability to Tenant and without constituting any claim of constructive eviction, to suspend
furnishing or rendering to Tenant any property, material, labor, utility or other service, whenever
Landlord is obligated to furnish or render the same at the expense of Tenant, in the event that
(but only for so long as) Tenant is in arrears in paying Landlord for such items for more than 5
days after notice from Landlord to Tenant demanding the payment of such arrears.

ARTICLE 16

LANDLORD’S RIGHT TO CURE; FEES AND EXPENSES

     If Tenant defaults in the performance of its obligations under this Lease, Landlord, without
waiving such default, may perform such obligations at Tenant’s expense: (a) immediately, and
without notice, in the case of emergency or if the default (i) materially interferes with the use
by any other tenant of the Building, (ii) materially interferes with the efficient operation of the
Building, (iii) results in a violation of any Requirement, or (iv) results or will result in a
cancellation of any insurance policy maintained by Landlord, and (b) in any other case if such
default continues after 10 days from the date Landlord gives notice of
Landlord’s intention to perform the defaulted obligation. All costs and expenses incurred by
Landlord in connection with any such performance by it and all costs and expenses, including
reasonable counsel fees and disbursements, incurred by Landlord in any action or proceeding
(including any unlawful detainer proceeding) brought by Landlord to enforce any obligation of
Tenant under this Lease and/or right of Landlord in or to the Premises or as a result of any
default by Tenant under this Lease, shall be paid by Tenant to Landlord on demand, with interest
thereon at the Interest Rate from the date incurred by Landlord. Except as expressly provided to
the contrary in this Lease, all costs and expenses which, pursuant to this Lease are incurred by
Landlord and payable to Landlord by Tenant, and all charges, amounts and sums payable to Landlord
by Tenant for any property, material, labor, utility or other services which, pursuant to this
Lease, attributable directly to Tenant’s use and occupancy of the Premises or presence at the
Building, or at the request and for the account of Tenant, are provided, furnished or rendered by
Landlord, shall become due and payable by Tenant to Landlord within 10 Business Days after receipt
of Landlord’s invoice for such amount.

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ARTICLE 17

NO REPRESENTATIONS BY LANDLORD; LANDLORD’S APPROVAL

     Section 17.1 No Representations. Except as expressly set forth herein, Landlord and
Landlord’s agents have made no warranties, representations, statements or promises with respect to
the Building, the Real Property or the Premises and no rights, easements or licenses are acquired
by Tenant by implication or otherwise. Tenant is entering into this Lease after full investigation
and is not relying upon any statement or representation made by Landlord not embodied in this
Lease.

     Section 17.2 Intentionally Deleted.

     Section 17.3 Reasonable Efforts. For purposes of this Lease, “reasonable efforts” by Landlord
shall not include an obligation to employ contractors or labor at overtime or other premium pay
rates or to incur any other overtime costs or additional expenses whatsoever.

ARTICLE 18

END OF TERM

     Section 18.1 Expiration. Upon the expiration or other termination of this Lease, Tenant shall
quit and surrender the Premises to Landlord vacant, broom clean and in good order and condition,
ordinary wear and tear and damage for which Tenant is not responsible under the terms of this Lease
excepted, and Tenant shall remove all of Tenant’s Property and Specialty Alterations.

     Section 18.2 Holdover Rent. Landlord and Tenant recognize that Landlord’s damages resulting
from Tenant’s failure to timely surrender possession of the Premises may be substantial, may exceed
the amount of the Rent payable hereunder, and will be impossible to accurately measure.
Accordingly, if possession of the Premises is not surrendered to Landlord on the
Expiration Date or sooner termination of this Lease, in addition to any other rights or
remedies Landlord may have hereunder or at law, Tenant shall (a) pay to Landlord for each month (or
any portion thereof) during which Tenant holds over in the Premises after the Expiration Date or
sooner termination of this Lease, a sum equal to the greater of (i) 1.5 times the Fixed Rent
payable under this Lease for the last full calendar month of the Term, and (ii) the rate Landlord
is then asking for comparable space in the Building (or if no comparable space is then available,
the fair market rental value of the Premises as reasonably determined by Landlord, (b) be liable to
Landlord for (1) any payment or rent concession which Landlord may be required to make to any
tenant obtained by Landlord for all or any part of the Premises (a “New Tenant”) in order to induce
such New Tenant not to terminate its lease by reason of the holding-over by Tenant, and (2) the
loss of the benefit of the bargain if any New Tenant shall terminate its lease by reason of the
holding-over by Tenant, and (c) indemnify Landlord against all claims for damages by any New
Tenant. No holding-over by Tenant, nor the payment to Landlord of the amounts specified above,
shall operate to extend the Term hereof. Nothing herein contained shall be deemed to permit Tenant
to retain possession of the Premises after the Expiration Date or sooner termination of this Lease,
and no acceptance by Landlord of payments from Tenant after the Expiration Date or sooner
termination of this Lease shall be deemed to be other than on account of the amount to be paid by
Tenant in accordance with the provisions of this Section 18.2.

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ARTICLE 19

QUIET ENJOYMENT

     Provided this Lease is in full force and effect and no Event of Default then exists, Tenant
may peaceably and quietly enjoy the Premises without hindrance by Landlord or any person lawfully
claiming through or under Landlord, subject to the terms and conditions of this Lease.

ARTICLE 20

NO SURRENDER; NO WAIVER

     Section 20.1 No Surrender or Release. No act or thing done by Landlord or Landlord’s agents
or employees during the Term shall be deemed an acceptance of a surrender of the Premises, except
the tender of the keys and tender of possession if Landlord has sought for possession under a three
day notice to pay rent or quit or sued in unlawful detainer, and no provision of this Lease shall
be deemed to have been waived by Landlord, unless such waiver is in writing and is signed by
Landlord.

     Section 20.2 No Waiver. The failure of either party to seek redress for violation of, or to
insist upon the strict performance of, any covenant or condition of this Lease, or any of the Rules
and Regulations, shall not be construed as a waiver or relinquishment for the future performance of
such obligations of this Lease or the Rules and Regulations, or of the right to exercise such
election but the same shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission. The receipt by Landlord of any Rent payable pursuant to this
Lease or any other sums with knowledge of the breach of any covenant of this
Lease shall not be deemed a waiver of such breach. No payment by Tenant or receipt by
Landlord of a lesser amount than the monthly Rent herein stipulated shall be deemed to be other
than a payment on account of the earliest stipulated Rent, or as Landlord may elect to apply such
payment, nor shall any endorsement or statement on any check or any letter accompanying any check
or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or
payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any
other remedy provided in this Lease.

ARTICLE 21

WAIVER OF COUNTERCLAIM

     If Landlord commences any summary proceeding against Tenant, Tenant will not interpose any
counterclaim of any nature or description in any such proceeding (unless failure to interpose such
counterclaim would preclude Tenant from asserting in a separate action the claim which is the
subject of such counterclaim), and will not seek to consolidate such proceeding with any other
action which may have been or will be brought in any other court by Tenant.

ARTICLE 22

NOTICES

     Except as otherwise expressly provided in this Lease, all consents, notices, demands,
requests, approvals or other communications given under this Lease shall be in writing and shall be
deemed sufficiently given or rendered if delivered by hand (provided a signed receipt is obtained)
or if sent by registered or certified mail (return receipt requested) or by a nationally recognized
overnight delivery service making receipted deliveries, addressed to Landlord and Tenant as set
forth in Article 1, or to such other address(es) as Landlord or Tenant may designate as its new
address(es) for such purpose by

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notice given to the other in accordance with the provisions of this
Article 22. Any such approval, consent, notice, demand, request or other communication shall be
deemed to have been given on the date of receipted delivery, refusal to accept delivery or when
delivery is first attempted but cannot be made due to a change of address for which no notice is
given or 3 Business Days after it shall have been mailed as provided in this Article 22, whichever
is earlier.

ARTICLE 23

RULES AND REGULATIONS

     All Tenant Parties shall observe and comply with the Rules and Regulations, as supplemented or
amended from time to time. Landlord reserves the right, from time to time, to adopt reasonable
additional Rules and Regulations and to reasonably amend the Rules and Regulations then in effect.
Nothing contained in this Lease shall impose upon Landlord any obligation to enforce the Rules and
Regulations or terms, covenants or conditions in any other lease against any other Building tenant,
and Landlord shall not be liable to Tenant for violation
of the same by any other tenant, its employees, agents, visitors or licensees, provided that
Landlord shall enforce the Rules or Regulations against Tenant in a non-discriminatory fashion.

ARTICLE 24

BROKER

     Landlord has retained Landlord’s Broker as leasing agent in connection with this Lease and
Landlord will be solely responsible for any fee that may be payable to Landlord’s Broker.
Landlord’s Broker shall be solely responsible for the payment of any commissions due Tenant’s
Broker in connection with this Lease. Each of Landlord and Tenant represents and warrants to the
other that neither it nor its agents have dealt with any broker in connection with this Lease other
than Landlord’s Broker and Tenant’s Broker. Each of Landlord and Tenant shall indemnify, defend,
protect and hold the other party harmless from and against any and all Losses which the indemnified
party may incur by reason of any claim of or liability to any broker, finder or like agent (other
than Landlord’s Broker and Tenant’s Broker) arising out of any dealings claimed to have occurred
between the indemnifying party and the claimant in connection with this Lease, and/or the above
representation being false.

ARTICLE 25

INDEMNITY

     Section 25.1 Waiver of Liability. Neither Landlord nor any of its Indemnitees shall be liable
or responsible in any way for, and Tenant hereby waives all claims against the Indemnitees with
respect to or arising out of (a) any death or any injury of any nature whatsoever that may be
suffered or sustained by Tenant or any employee, licensee, invitee, guest, agent or customer of
Tenant or any other person, from any causes whatsoever except to the extent such injury or death is
caused by the gross negligence or willful misconduct of the Indemnitees; or (b) any loss or damage
or injury to any property outside or within the Premises belonging to Tenant or its employees,
agents, customers, licensees, invitees, guests or any other person; except to the extent such
injury or damage is to property not covered by insurance carried (or required to be carried) by
Tenant and is caused by the gross negligence or willful misconduct of the Indemnitees. Subject to
the foregoing, none of the Indemnitees shall be liable for any damage or damages of any nature
whatsoever to persons or property caused by explosion, fire, theft or breakage, by sprinkler,
drainage or plumbing systems, by failure for any cause to supply adequate drainage, by the
interruption of any public utility or service, by steam, gas, water, rain or other substances
leaking, issuing or flowing into any part of the Premises, by natural occurrence, acts of the
public enemy, riot, strike,

(31)

 

insurrection, war, court order, requisition or order of governmental
body or authority, or for any damage or inconvenience which may arise through repair, maintenance
or alteration of any part of the Building, or by anything done or omitted to be done by any tenant,
occupant or person in the Building. In addition, none of the Indemnitees shall be liable for any
loss or damage for which Tenant is required to insure, nor for any loss or damage resulting from
any construction, alterations or repair.

     Section 25.2 Tenant’s Indemnity. Tenant shall not do or permit to be done any act or thing
upon the Premises or the Building which may subject Landlord to any liability or responsibility for
injury, damages to persons or property or to any liability by reason of any violation of any
Requirement, and shall exercise such control over the Premises as to fully protect Landlord against
any such liability. Except to the extent of any such injury or damage resulting from the
negligence or willful misconduct of Landlord or Landlord’s agents or employees, Tenant shall
indemnify, defend, protect and hold harmless each of the Indemnitees from and against any and all
Losses, resulting from any claims (i) against the Indemnitees arising from any act, omission or
negligence of any Tenant Party, (ii) against the Indemnitees arising from any accident, injury or
damage to any person or to the property of any person and occurring in or about the Premises during
the Term hereof, and (iii) against the Indemnitees resulting from any breach, violation or
nonperformance of any covenant, condition or agreement of this Lease on the part of Tenant to be
fulfilled, kept, observed or performed.

     Section 25.3 Landlord’s Indemnity. Landlord shall indemnify, defend and hold harmless Tenant
from and against all Losses incurred by Tenant arising from any accident, injury or damage to any
person or the property of any person in or about the Common Areas (specifically excluding the
Premises) to the extent attributable to the gross negligence or willful misconduct of Landlord or
its employees or agents.

     Section 25.4 Defense and Settlement. If any claim, action or proceeding is made or brought
against any Indemnitee, then upon demand by an Indemnitee, Tenant, at its sole cost and expense,
shall resist or defend such claim, action or proceeding in the Indemnitee’s name (if necessary), by
attorneys approved by the Indemnitee, which approval shall not be unreasonably withheld (attorneys
for Tenant’s insurer shall be deemed approved for purposes of this Section 25.4). Notwithstanding
the foregoing, an Indemnitee may retain its own attorneys to participate or assist in defending any
claim, action or proceeding involving potential liability in excess of the amount available under
Tenant’s liability insurance carried under Section 11.1 for such claim and Tenant shall pay the
reasonable fees and disbursements of such attorneys. If Tenant fails to diligently defend or if
there is a legal conflict or other conflict of interest, then Landlord may retain separate counsel
at Tenant’s expense. Notwithstanding anything herein contained to the contrary, Tenant may direct
the Indemnitee to settle any claim, suit or other proceeding provided that (a) such settlement
shall involve no obligation on the part of the Indemnitee other than the payment of money, (b) any
payments to be made pursuant to such settlement shall be paid in full exclusively by Tenant at the
time such settlement is reached, (c) such settlement shall not require the Indemnitee to admit any
liability, and (d) the Indemnitee shall have received an unconditional release from the other
parties to such claim, suit or other proceeding.

ARTICLE 26

MISCELLANEOUS

     Section 26.1 Delivery. This Lease shall not be binding upon Landlord or Tenant unless and
until Landlord shall have executed and delivered a fully executed copy of this Lease to Tenant.

     Section 26.2 Transfer of Real Property. Landlord’s obligations under this Lease shall not be
binding upon the Landlord named herein after the sale, conveyance, assignment or transfer
(collectively, a “Landlord Transfer”) by such Landlord (or upon any subsequent landlord after the
Landlord Transfer by such subsequent landlord) of its interest in the Building or the Real
Property, as the case may be, and in the event of any such Landlord Transfer, Landlord (and any
such subsequent Landlord) shall be entirely freed and relieved of all covenants and obligations of
Landlord hereunder arising from and after

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the date of the Landlord Transfer, and the transferee of
Landlord’s interest (or that of such subsequent Landlord) in the Building or the Real Property, as
the case may be, shall be deemed to have assumed all obligations under this Lease arising from and
after the date of the Landlord Transfer.

     Section 26.3 Limitation on Liability. The liability of Landlord for Landlord’s obligations
under this Lease and any other documents executed by Landlord and Tenant in connection with this
Lease (collectively, the “Lease Documents”) shall be limited to Landlord’s interest in the Real
Property and Tenant shall not look to any other property or assets of Landlord or the property or
assets of any direct or indirect partner, member, manager, shareholder, director, officer,
principal, employee or agent of Landlord (collectively, the “Parties”) in seeking either to enforce
Landlord’s obligations under the Lease Documents or to satisfy a judgment for Landlord’s failure to
perform such obligations; and none of the Parties shall be personally liable for the performance of
Landlord’s obligations under the Lease Documents.

     Section 26.4 Rent. All amounts payable by Tenant to or on behalf of Landlord under this
Lease, whether or not expressly denominated Fixed Rent, Additional Rent or Rent, shall constitute
rent for the purposes of Section 502(b)(6) of the United States Bankruptcy Code.

     Section 26.5 Entire Document. This Lease (including any Schedules and Exhibits referred to
herein and all supplementary agreements provided for herein) contains the entire agreement between
the parties and all prior negotiations and agreements are merged into this Lease. All of the
Schedules and Exhibits attached hereto are incorporated in and made a part of this Lease, provided
that in the event of any inconsistency between the terms and provisions of this Lease and the terms
and provisions of the Schedules and Exhibits hereto, the terms and provisions of this Lease shall
control.

     Section 26.6 Governing Law. This Lease shall be governed in all respects by the laws of the
State of California.

     Section 26.7 Unenforceability. If any provision of this Lease, or its application to any
person or entity or circumstance, shall ever be held to be invalid or unenforceable, then in each
such event the remainder of this Lease or the application of such provision to any other person or
entity or any other circumstance (other than those as to which it shall be invalid or
unenforceable) shall not be thereby affected, and each provision hereof shall remain valid and
enforceable to the fullest extent permitted by law.

     Section 26.8 Lease Disputes

          (a) Tenant agrees that all disputes arising, directly or indirectly, out of or relating to
this Lease, and all actions to enforce this Lease, shall be dealt with and adjudicated in
the state courts of the State of California or the United States District Court for the
Northern District of California and for that purpose hereby expressly and irrevocably submits
itself to the jurisdiction of such courts. Tenant agrees that so far as is permitted under
applicable law, this consent to personal jurisdiction shall be self-operative and no further
instrument or action, other than service of process in one of the manners specified in this Lease,
or as otherwise permitted by law, shall be necessary in order to confer jurisdiction upon it in any
such court.

          (b) To the extent that Tenant has or hereafter may acquire any immunity from jurisdiction of
any court or from any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its
property, Tenant irrevocably waives such immunity in respect of its obligations under this Lease.

     Section 26.9 Estoppel. Within 10 Business Days following request from Landlord, Tenant shall
deliver to Landlord a statement executed and acknowledged by Tenant, in form reasonably
satisfactory to Landlord, (a) stating the Commencement Date, the Rent Commencement Date and the
Expiration Date, and that this Lease is then in full force and effect and has not been modified (or
if

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modified, setting forth all modifications), (b) setting forth the date to which the Fixed Rent
and any Additional Rent have been paid, together with the amount of monthly Fixed Rent and
Additional Rent then payable, (c) stating whether or not, to the best of Tenant’s knowledge,
Landlord is in default under this Lease, and, if Landlord is in default, setting forth the specific
nature of all such defaults, (d) stating the amount of the Security Deposit, if any, under this
Lease, (e) stating whether there are any subleases or assignments affecting the Premises, (f)
stating the address of Tenant to which all notices and communications under the Lease shall be
sent, and (g) responding to any other matters reasonably requested by Landlord. Tenant
acknowledges that any statement delivered pursuant to this Section 26.9 may be relied upon by any
purchaser or owner of the Real Property or the Building, or all or any portion of Landlord’s
interest in the Real Property or the Building, or by any Mortgagee, or assignee thereof.

     Section 26.10 Certain Interpretational Rules. For purposes of this Lease, whenever the words
“include”, “includes”, or “including” are used, they shall be deemed to be followed by the words
“without limitation” and, whenever the circumstances or the context requires, the singular shall be
construed as the plural, the masculine shall be construed as the feminine and/or the neuter and
vice versa. This Lease shall be interpreted and enforced without the aid of any canon, custom or
rule of law requiring or suggesting construction against the party drafting or causing the drafting
of the provision in question. The captions in this Lease are inserted only as a matter of
convenience and for reference and in no way define, limit or describe the scope of this Lease or
the intent of any provision hereof.

     Section 26.11 Parties Bound. The terms, covenants, conditions and agreements contained in
this Lease shall bind and inure to the benefit of Landlord and Tenant and, except as otherwise
provided in this Lease, to their respective legal representatives, successors, and assigns.

     Section 26.12 Memorandum of Lease. This Lease shall not be recorded; however, at Landlord’s
request, Landlord and Tenant shall promptly execute, acknowledge and deliver a
memorandum with respect to this Lease sufficient for recording and Landlord may record the
memorandum. Within 10 days after the end of the Term, Tenant shall enter into such documentation
as is reasonably required by Landlord to remove the memorandum of record.

     Section 26.13 Counterparts. This Lease may be executed in 2 or more counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one
instrument.

     Section 26.14 Survival. All obligations and liabilities of Landlord or Tenant to the other
which accrued before the expiration or other termination of this Lease, and all such obligations
and liabilities which by their nature or under the circumstances can only be, or by the provisions
of this Lease may be, performed after such expiration or other termination, shall survive the
expiration or other termination of this Lease. Without limiting the generality of the foregoing,
the rights and obligations of the parties with respect to any indemnity under this Lease, and with
respect to any Rent and any other amounts payable under this Lease, shall survive the expiration or
other termination of this Lease.

     Section 26.15 Code Waivers. Tenant hereby waives any and all rights under and benefits of
SubSection 1 of Section 1931, 1932, Subdivision 2, 1933, Subdivision 4, 1941, 1942 and 1950.7
(excluding 1950.7(b)) (providing that a Landlord may only claim from a security deposit only those
sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a
tenant or to clean the premises) of the California Civil Code, Section 1265.130 of the California
Code of Civil Procedure (allowing either party to petition a court to terminate a lease in the
event of a partial taking), and Section 1174(c) of the California Code of Civil Procedure and
Section 1951.7 of the California Civil Code (providing for Tenant’s right to satisfy a judgment in
order to prevent a forfeiture of this Lease or requiring Landlord to deliver written notice to
Tenant of any reletting of the Premises), and any similar law, statute or ordinance now or
hereinafter in effect.

     Section 26.16 Hazardous Substance Disclosure. California law requires landlords to disclose
to tenants the presence or potential presence of certain Hazardous Materials. Accordingly, Tenant
is hereby advised that occupation of the Premises and use of the common areas of the Real Property
may

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lead to exposure to Hazardous Materials such as, but not limited to, gasoline, diesel and other
vehicle fluids, vehicle exhaust, office maintenance fluids, tobacco smoke, and building materials
containing chemicals, such as formaldehyde. In addition, California’s Proposition 65, Health and
Safety Code Section 25249.6 et. seq., requires notice that some of these Hazardous Materials are
known by the State of California to cause cancer or reproductive harm. By execution of this Lease,
Tenant acknowledges that the notices and warnings set forth above satisfy the requirements of
California Health and Safety Code Sections 25249.6 et. seq., 25359.7 and 25915.5 et. seq., and
any related and/or successor statues.

     Section 26.17 Inability to Perform. This Lease and the obligation of Tenant to pay Rent and
to perform all of the other covenants and agreements of Tenant hereunder shall not be affected,
impaired or excused by any Unavoidable Delays. Landlord shall use reasonable efforts to promptly
notify Tenant of any Unavoidable Delay which prevents Landlord from fulfilling any of its
obligations under this Lease.

ARTICLE 27

LETTER OF CREDIT

     Section 27.1 Form of Letter of Credit; Letter of Credit Amount. Concurrently with Tenant’s
execution of this Lease, Tenant shall deliver to Landlord, as protection for the full and faithful
performance by Tenant of all of its obligations under this Lease and for all losses and damages
Landlord may suffer as a result of any breach or default by Tenant under this Lease, an irrevocable
and unconditional negotiable standby letter of credit (the “Letter of Credit”), in the form
attached hereto as Exhibit I and containing the terms required herein, payable in the City
of San Francisco or Counties of San Mateo or Santa Clara, California, running in favor of Landlord
and issued by solvent, nationally recognized bank with a long term rating of BBB or higher, under
the supervision of the Superintendent of Banks of the State of California, or a national banking
association, in the amount $917,011.20 (the “Letter of Credit Amount”). Landlord hereby approves
Bank of America, Wells Fargo and JP Morgan/Chase as issuers of the Letter of Credit. The Letter of
Credit shall (i) be “callable” at sight, irrevocable and unconditional, (ii) be maintained in
effect, whether through renewal or extension, for the period from the Commencement Date and
continuing until the fourth anniversary of the Commencement Date (the “LC Expiration Date”), (iii)
be fully assignable by Landlord, its successors and assigns, (iv) permit partial draws and multiple
presentations and drawings, and (v) be otherwise subject to the Uniform Customs and Practices for
Documentary Credits (1993 Revisions) International Chamber of Commerce Publication #500. The form
and terms of the Letter of Credit and the bank issuing the same (the “Bank”) shall be acceptable to
Landlord, in Landlord’s sole discretion. Landlord shall have the right to draw down an amount up
to the face amount of the Letter of Credit if any of the following shall have occurred or be
applicable: (1) such amount is due to Landlord under the terms and conditions of this Lease, or (2)
Tenant has filed a voluntary petition under the U.S. Bankruptcy Code or any state bankruptcy code
(collectively, “Bankruptcy Code”), or (3) an involuntary petition has been filed against Tenant
under the Bankruptcy Code, or (4) the Bank has notified Landlord that the Letter of Credit will not
be renewed or extended through the LC Expiration Date. The Letter of Credit will be honored by the
Bank regardless of whether Tenant disputes Landlord’s right to draw upon the Letter of Credit.

     Section 27.2 Transfer of Letter of Credit by Landlord. The Letter of Credit shall also
provide that Landlord, its successors and assigns, may, at any time and without notice to Tenant
and without first obtaining Tenant’s consent thereto, transfer (one or more times) all or any
portion of its interest in and to the Letter of Credit to another party, person or entity,
regardless of whether or not such transfer is separate from or as a part of the assignment by
Landlord of its rights and interests in and to this Lease. In the event of a transfer of
Landlord’s interest in the Building, Landlord shall transfer the Letter of Credit, in whole or in
part, to the transferee and thereupon Landlord, without any further agreement between the parties,
shall be released by Tenant from all liability therefor, and it is agreed that the provisions
hereof shall apply to every transfer or assignment of the whole or any portion of said Letter of
Credit to a new landlord. In connection with any such transfer of the Letter of Credit by
Landlord, Tenant shall, at Tenant’s sole cost and expense, execute and submit to the Bank such
applications,

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documents and instruments as may be necessary to effectuate such transfer, and Tenant
shall be responsible for paying the Bank’s transfer and processing fees in connection therewith.

     Section 27.3 Maintenance of Letter of Credit by Tenant. If, as a result of any drawing by
Landlord on the Letter of Credit, the amount of the Letter of Credit shall be less than the Letter
of Credit Amount, Tenant shall, within five days thereafter, provide Landlord with additional
letter(s) of credit in an amount equal to the deficiency, and any such additional letter(s) of
credit shall comply with all of the provisions of this Article 27, and if Tenant fails to comply
with the foregoing, notwithstanding anything to the contrary contained in Section 15.1 of this
Lease, the same shall constitute an incurable Event of Default by Tenant. Tenant further covenants
and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and
that neither Landlord nor its successors or assigns will be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance. Without limiting the generality of the
foregoing, if the Letter of Credit expires earlier than the LC Expiration Date, Landlord will
accept a renewal thereof (such renewal letter of credit to be in effect and delivered to Landlord,
as applicable, not later than 90 days prior to the expiration of the Letter of Credit), which shall
be irrevocable and automatically renewable as above provided through the LC Expiration Date upon
the same terms as the expiring Letter of Credit or such other terms as may be acceptable to
Landlord in its sole discretion. However, if the Letter of Credit is not timely renewed, or if
Tenant fails to maintain the Letter of Credit in the amount and in accordance with the terms set
forth in this Article 27, Landlord shall have the right to present the Letter of Credit to the Bank
in accordance with the terms of this Article 27, and the proceeds of the Letter of Credit may be
applied by Landlord against any Rent payable by Tenant under this Lease that is not paid when due
and/or to pay for all losses and damages that Landlord has suffered or that Landlord reasonably
estimates that it will suffer as a result of any breach or default by Tenant under this Lease. Any
unused proceeds shall constitute the property of Landlord and need not be segregated from
Landlord’s other assets. Landlord agrees to pay to Tenant within 30 days after the LC Expiration
Date the amount of any proceeds of the Letter of Credit received by Landlord and not applied
against any Rent payable by Tenant under this Lease that was not paid when due or used to pay for
any losses and/or damages suffered by Landlord (or reasonably estimated by Landlord that it will
suffer) as a result of any breach or default by Tenant under this Lease; provided, however, that if
prior to the LC Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition
is filed against Tenant by any of Tenant’s creditors, under the Bankruptcy Code, then Landlord
shall not be obligated to make such payment in the amount of the unused Letter of Credit proceeds
until either all preference issues relating to payments under this Lease have been resolved in such
bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed.

     Section 27.4 Landlord’s Right to Draw Upon Letter of Credit. Tenant hereby acknowledges and
agrees that Landlord is entering into this Lease in material reliance upon the ability of Landlord
to draw upon the Letter of Credit upon the occurrence of any material breach or default on the part
of Tenant under this Lease. If Tenant shall breach any provision of this Lease or otherwise be in
default hereunder, Landlord may, but without obligation to do so, and without notice to Tenant,
draw upon the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and/or
to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord
reasonably estimates that it will sustain resulting from Tenant’s breach or default. The use,
application or retention of the Letter of Credit, or any portion thereof, by Landlord shall not
prevent Landlord from exercising any other right or remedy provided by this Lease or by any
applicable law, it being intended that Landlord shall not first be required to proceed against the
Letter of Credit, and shall not operate as a limitation on
any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in
any way with payment to Landlord of the proceeds of the Letter of Credit, either prior to or
following a “draw” by Landlord of any portion of the Letter of Credit, regardless of whether any
dispute exists between Tenant and Landlord as to Landlord’s right to draw upon the Letter of
Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit
conditional to justify the issuer of the Letter of Credit in failing to honor a drawing upon such
Letter of Credit in a timely manner. Tenant agrees and acknowledges that (a) the Letter of Credit
constitutes a separate and independent contract between Landlord and the Bank, (b) Tenant is not a
third party beneficiary of such contract, (c) Tenant has no property interest whatsoever in the
Letter of Credit or the proceeds thereof, and (d) in the event Tenant becomes a debtor under any
chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall
have

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any right to restrict or limit Landlord’s claim and/or rights to the Letter of Credit and/or
the proceeds thereof by application of Section 502(b)(6) of the U. S. Bankruptcy Code or
otherwise.

     Section 27.5 Letter of Credit Not a Security Deposit. Landlord and Tenant acknowledge and
agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or any
proceeds thereof be (i) deemed to be or treated as a “security deposit” within the meaning of
California Civil Code Section 1950.7, (ii) subject to the terms of such Section 1950.7, or (iii)
intended to serve as a “security deposit” within the meaning of such Section 1950.7. The parties
hereto (A) recite that the Letter of Credit is not intended to serve as a security deposit and such
Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in
the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto
and (B) waive any and all rights, duties and obligations either party may now or, in the future,
will have relating to or arising from the Security Deposit Laws.

ARTICLE 28

PARKING

     Tenant shall have the right to use, without any additional cost or charge therefor, commencing
on the Commencement Date, up to 4.3 non-transferable parking passes for each 1,000 rentable square
foot of the Premises, which parking passes shall pertain to the Project Parking Facilities (as
hereinafter defined). “Project Parking Facilities” shall mean, collectively, the subterranean
garage located within the Building, the surface lot (as more particularly described on the Site
Plan) and Parking Structure B (as more particularly described on the Site Plan). Of Tenant’s total
of 352 parking passes, 52 (comprising a combination of regular and compact stalls) may be used
within the subterranean garage located within the Building. If Landlord determines that Tenant is
parking more cars in the subterranean garage than permitted hereunder, then Landlord, upon notice
to Tenant shall have the right to revoke Tenant’s rights to park within such subterranean garage.
The balance shall be used on the surface lot or in Parking Structure B. Access to the subterranean
spaces shall be by key card and there shall be no reserved spaces designated for Tenant. Landlord
may charge Tenant a reasonable fee to replace any such key cards that are lost or damaged.
Tenant’s continued right to use the parking passes is conditioned upon Tenant’s abiding by all
reasonable rules and regulations which are prescribed from time to time for the orderly operation
and use of the Project Parking Facilities, including any sticker or other identification system
established by Landlord of the operator of the Project Parking Facilities, Tenant’s cooperation in
seeing that Tenant’s employees and visitors also comply with such rules and regulations and Tenant
not being in default under this Lease. Landlord specifically reserves the right to change the
size, configuration, design, layout and all other aspects of the Project Parking Facilities at any
time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to
Tenant and without any abatement of Rent under this Lease, from time to time, temporarily close-off
or restrict access to the Project Parking Facilities (or any portion thereof) for purposes of
facilitating any such construction, alteration or improvements, so long as adequate parking is
provided for Tenant’s use. Landlord may delegate its responsibilities hereunder to a parking
operator in which case such parking operator shall have all of the rights of control attributed
hereby to Landlord. The parking passes granted to Tenant pursuant to this Article 28 are provided
to Tenant solely for use by tenant’s own personnel, and except in connection with an assignment of
Tenant’s interest in this Lease (including to a Permitted Assignee) or a sublease of all or any
portion of the Premises, in each case made in accordance with the applicable terms and conditions
of Article 13 above, such passes may not be transferred, assigned, subleased or otherwise alienated
by Tenant without Landlord’s prior written approval.

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ARTICLE 29

FURNITURE

     Notwithstanding anything in this Lease to the contrary, during the Term Landlord shall provide
Tenant with access to and shall permit Tenant the use of (at no additional cost therefore) certain
items of office furniture and other items of personal property in the Premises (collectively, the
“Office Furniture”), as described in more detail in the Furniture Inventory attached hereto as
Exhibit H and incorporated herein by reference. Tenant shall accept the Office Furniture
in its presently existing, AS IS condition as of the Commencement Date, and Tenant shall be
responsible, at Tenant’s sole cost and expense, for all maintenance and repair of the Office
Furniture, normal wear and tear excepted. Tenant acknowledges and agrees that it shall be
responsible for installing its own telephone system (together with all handsets) within the
Premises. Upon the expiration or earlier termination of this Lease, (i) the Office Furniture shall
remain the sole property of Landlord, and (ii) Tenant shall surrender possession of the Office
Furniture, reasonable wear and tear excepted. In addition, upon the expiration or earlier
termination of this Lease, in the event any items of Office Furniture are missing or damaged,
Tenant shall, at its sole cost and expense, repair or replace, respectively, such items of the
Office Furniture. Tenant shall be responsible for insuring the Office Furniture during the Term.

ARTICLE 30

RENEWAL TERM

     Section 30.1 Renewal Term. Tenant shall have the right to renew the Term for all of the
Premises for (x) one renewal term of 24 months (the “First Renewal Term”) which shall commence on
the day following the expiration of the initial Term and end on the second anniversary of the
Expiration Date, unless the First Renewal Term shall sooner terminate pursuant to any of the terms
of this Lease or otherwise; and (y) provided that Tenant timely exercised its option for the First
Renewal Term and, subject to Landlord’s recapture right as hereinafter provided, a second renewal
term of 36 months (the “Second Renewal Term” and, jointly with the First Renewal Term, a “Renewal
Term”), unless the Second Renewal Term shall sooner terminate pursuant to any of the terms of this
Lease or otherwise. The Renewal Term shall commence only if (a) Tenant shall have notified
Landlord in writing of Tenant’s exercise of each such renewal right not earlier than nine months
and not later than one year prior to then scheduled Expiration Date, and (b) at the time of the
exercise of such right and immediately prior to the Expiration Date, no event of Default shall have
occurred and be continuing hereunder. Time is of the essence with respect to the giving of the
notice of Tenant’s exercise of the renewal option. Each Renewal Term shall be upon all of the
agreements, terms, covenants and conditions hereof binding upon Tenant, except that the Fixed Rent
(as defined in Section 1.1) shall be determined as provided in Section 30.2 and, upon the exercise
of the renewal right respecting the Second Renewal Term, Tenant shall have no further right to
renew the Term. Upon the commencement of each Renewal Term, (A) the applicable Renewal Term shall
be added to and become part of the Term (but shall not be considered part of the initial Term), (B)
any reference to “this Lease”, to the “Term”, the “term of this Lease” or any similar expression
shall be deemed to include the applicable Renewal Term, and (C) the expiration of the subject
Renewal Term shall become the Expiration Date. Notwithstanding anything set forth in this Section
30.1 to the contrary, Landlord shall have the right, within 10 Business Days of receipt of Tenant’s
exercise notice with respect to the Second Renewal Term, and by written notice to Tenant, to elect
to recapture the Premises for its own use and enjoyment as of the end of the First Renewal Term.

     Section 30.2 Renewal Term Rent. If the Term shall be renewed as provided in Section 33.1, the
annual Fixed Rent payable during the Renewal Term shall be equal to 95% of the annual fair market
rental value of the Premises (the “Fair Market Value”) as of the day immediately following the
expiration of the initial Term, or the expiration of the First Renewal Term, as the case may be (in
each case, the “Calculation Date”). Any dispute between the parties as to the annual fair market
rental value shall be resolved by arbitration as provided in Section 30.3 hereof. Within 30 days
following Landlord’s receipt of each applicable Exercise Notice, Landlord shall advise Tenant in
writing of Landlord’s determination of

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Fair Market Value (the “Rent Notice”). Within 30 days of Tenant’s receipt of Landlord’s Rent
Notice, Tenant shall advise Landlord in writing whether Tenant accepts Landlord’s determination of
Fair Market Value or elects to have the determination of Fair Market Value be resolved by
arbitration as provided in Section 30.3 hereof. Tenant’s failure to so advise Landlord of its
election within such 30-day period shall constitute Tenant’s rejection of Landlord’s determination
of Fair Market Value. If the Fixed Rent payable during each Renewal Term has not been determined
prior to the commencement thereof, Tenant shall pay Fixed Rent in an amount equal to the fair
market rental value for the Premises as determined by Landlord (the “Interim Rent”). Upon final
determination of the Fixed Rent for each Renewal Term, Tenant shall commence paying such Fixed Rent
as so determined, and within 10 days after such determination Tenant shall pay any deficiency in
prior payments of Fixed Rent or, if the Fixed Rent as so determined shall be less than the Interim
Rent, Tenant shall be entitled to a credit against the next succeeding installments of Fixed Rent
in an amount equal to the difference between each installment of Interim Rent and the Fixed Rent as
so determined which should have been paid for such installment until the total amount of the over
payment has been recouped.

     Section 30.3 Arbitration. If Tenant shall dispute or is deemed to dispute Landlord’s
determination of Fair Market Value pursuant to Section 30.2, Tenant shall give notice to Landlord
of such dispute within 10 days of Tenant’s receipt of Landlord’s determination, and such dispute
shall be determined by a single arbitrator appointed in accordance with the American Arbitration
Association Real Estate Valuation Arbitration Proceeding Rules. The arbitrator shall be impartial
and shall have not less than 10 years’ experience in the County of San Mateo in a calling related
to the leasing of commercial office space in Comparable Buildings, and the fees of the arbitrator
shall be shared by Landlord and Tenant. Within 15 days following the appointment of the
arbitrator, Landlord and Tenant shall attend a hearing before the arbitrator at which each party
shall submit a report setting forth its determination of the Fair Market Value of the Premises for
the Renewal Term, together with such information on comparable rentals and such other evidence as
such party shall deem relevant. The arbitrator shall, within 30 days following such hearing and
submission of evidence, render his or her decision by selecting the determination of Fair Market
Value submitted by either Landlord or Tenant which, in the judgment of the arbitrator, most nearly
reflects the Fair Market Value of the Premises for the Renewal Term. The arbitrator shall have no
power or authority to select any Fair Market Value other than a Fair Market Value submitted by
Landlord or Tenant, and the decision of the arbitrator shall be final and binding upon Landlord and
Tenant.

ARTICLE 31

SECURITY DEPOSIT

     Section 31.1 Security Deposit. In addition to delivery of the Letter of Credit, Tenant shall
also deposit the Security Deposit with Landlord upon the execution of this Lease in cash as
security for the faithful performance and observance by Tenant of the terms, covenants and
conditions of this Lease.

     Section 31.2 Application of Security. If (a) an Event of Default by Tenant occurs in the
payment or performance of any of the terms, covenants or conditions of this Lease, including the
payment of Rent, or (b) Tenant fails to make any installment of Rent as and when due, Landlord may
apply or retain the whole or any part of the Security Deposit, to the extent required for the
payment of any Fixed Rent or any other sum as to which Tenant is in default including (i) any sum
which Landlord may expend or may be required to expend by reason of Tenant’s default, and/or (ii)
any damages to which Landlord is entitled pursuant to this Lease, whether such damages accrue
before or after summary proceedings or other reentry by Landlord. If Landlord applies or retains
any part of the Security Deposit, Tenant, upon demand, shall deposit with Landlord the amount so
applied or retained so that Landlord shall have the full Security Deposit on hand at all times
during the Term. If Tenant shall comply with all of the terms, covenants and conditions of this
Lease, the Security Deposit shall be returned to Tenant after the Expiration Date and after
delivery of possession of the Premises to Landlord in the manner required by this Lease. Tenant
hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any,
Tenant now has, or in the future may have, under Section 1950.7 of the California Civil Code

(39)

 

(except 1950.7(b)), any successor statue, and all other provisions of law, now or hereafter in
effect, including, but not limited to, any provision of law which (A) establishes the time frame by
which a landlord must refund a security deposit under a lease, or (B) provides that a landlord may
claim from a security deposit only those sums reasonably necessary to remedy defaults in the
payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant
acknowledges and agrees that that (I) any statutory time frames for the return of a security
deposit are superseded by the express period identified in this Section 31.2, above, and (II)
rather than be so limited, Landlord may claim from the Security Deposit (2) any and all sums
expressly identified in this Article 31, above, and (1) any additional sums reasonably necessary to
compensate Landlord for any and all losses or damages caused by Tenant’s default of this Lease,
including, but not limited to, all damages or rent due upon termination of this Lease pursuant to
Section 1951.2 of the California Civil Code.

     Section 31.3 Transfer. Upon a sale or other transfer of the Real Property or the Building, or
any financing of Landlord’s interest therein, Landlord shall have the right to transfer the
Security Deposit to its transferee or lender. Tenant shall look solely to the new landlord or
lender for the return of such Security Deposit and the provisions hereof shall apply to every
transfer or assignment made of the Security Deposit to a new landlord. Tenant shall not assign or
encumber or attempt to assign or encumber the Security Deposit and neither Landlord nor its
successors or assigns shall be bound by any such action or attempted assignment, or encumbrance.

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

	 	 	 	 	 
	LANDLORD:

	 	TENANT
	 
	 	 	 	 
	FRANKLIN TEMPLETON COMPANIES, LLC,

	 	DemandTec, Inc.
	 
	 	 	 	 
	a Delaware limited liability company

	 	A Delaware corporation
	 
	 	 	 	 
	By:	 /s/ Les M. Kratter

	 	By:	/s/ Mark A. Culhane
	 
	 	 	 	 
	 	Its: Senior Vice President

	 	 	Its: EVP & CFO
	 
	 	 	 	 
	 

	 	 	By: 	/s/ Michael J. McAdam
	 
	 	 
	 

	 	 	 	Its: General Counsel

(40)

 

EXHIBIT A-1

Floor Plan of the Second Floor

The floor plan which follows is intended solely to identify the general location of the
Premises, and should not be used for any other purpose. All areas, dimensions and
locations are approximate, and any physical conditions indicated may not exist as shown.

EXHIBIT A-1

(1)

 

EXHIBIT A-2

Floor Plan of the Third Floor

The floor plan which follows is intended solely to identify the general location of the
Premises, and should not be used for any other purpose. All areas, dimensions and
locations are approximate, and any physical conditions indicated may not exist as shown.

EXHIBIT A-2
(1)

 

EXHIBIT A-3

Site Plan

EXHIBIT A-3
(1)

 

EXHIBIT B

Definitions

     Above Building Standard Installations: Any Alterations or improvements to the Premises to the
extent such Alterations or improvements exceed Building Standard Installations.

     Base Rate: The annual rate of interest publicly announced from time to time by Citibank,
N.A., or its successor, in New York, New York as its “base rate” (or such other term as may be used
by Citibank, N.A., from time to time, for the rate presently referred to as its “base rate”).

     Building Standard Installations: The type of leasehold improvements typically performed by
Landlord in connection with the initial occupancy of tenants in the Building.

     Building Systems: The mechanical, electrical, plumbing, sanitary, sprinkler, heating,
ventilation and air conditioning, security, life-safety, elevator and other service systems or
facilities of the Building up to the point of connection of localized distribution to the Premises
(excluding, however, supplemental HVAC systems of tenants, sprinklers and the horizontal
distribution systems within and servicing the Premises and by which mechanical, electrical,
plumbing, sanitary, heating, ventilating and air conditioning, security, life-safety and other
service systems are distributed from the base Building risers, feeders, panelboards, etc. for
provision of such services to the Premises).

     Business Days: All days, excluding Saturdays, Sundays and Observed Holidays.

     Code: The Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder, as amended.

     Common Areas: The lobby, plaza and sidewalk areas, parking facilities and other similar areas
of general access and the areas on individual multi-tenant floors in the Building devoted to
corridors, elevator lobbies, restrooms, and other similar facilities serving the Premises.

     Comparable Buildings: First-class office buildings of comparable age and quality in the
cities of San Mateo and Foster City, California.

     Governmental Authority: The United States of America, the City of San Mateo, County of San
Mateo, or State of California, or any political subdivision, agency, department, commission, board,
bureau or instrumentality of any of the foregoing, now existing or hereafter created, having
jurisdiction over the Real Property.

     Hazardous Materials: Any substances, materials or wastes currently or in the future deemed or
defined in any Requirement as “hazardous substances,” “toxic substances,” “contaminants,”
“pollutants” or words of similar import.

     HVAC System: The Building System designed to provide heating, ventilation and air
conditioning.

     Indemnitees: Landlord and its respective direct and indirect partners, officers,
shareholders, directors, members, managers, trustees, beneficiaries, employees, principals,
contractors, servants, agents, and representatives. Indemnitees shall expressly be deemed to
include Franklin Resources, Inc., a Delaware corporation.

     Lease Year: The first Lease Year shall commence on the Commencement Date and shall end on the
last day of the calendar month preceding the month in which the first anniversary of the
Commencement Date occurs. Each succeeding Lease Year shall commence on the day following the

EXHIBIT B 
(1)

 

end of the preceding Lease Year and shall extend for 12 consecutive months; provided, however,
that the last Lease Year shall expire on the Expiration Date.

     Losses: Any and all losses, liabilities, damages, claims, judgments, fines, suits, demands,
costs, interest and expenses of any kind or nature (including reasonable attorneys’ fees and
disbursements) incurred in connection with any claim, proceeding or judgment and the defense
thereof, and including all costs of repairing any damage to the Premises or the Building or the
appurtenances of any of the foregoing to which a particular indemnity and hold harmless agreement
applies.

     Mortgage(s): Any mortgage, trust indenture or other financing document which may hereafter
affect the Premises, the Real Property, the Building, and all renewals, extensions, supplements,
amendments, modifications, consolidations and replacements thereof or thereto, substitutions
therefor, and advances made thereunder.

     Mortgagee(s): Any mortgagee, trustee or other holder of a Mortgage.

     Observed Holidays: New Years Day, Martin Luther King Day, Presidents Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, plus such other days
as are then observed by the New York Stock Exchange as holidays.

     Ordinary Business Hours: 7:00 a.m. to 6:00 p.m. on Business Days.

     Prohibited Use: Any use or occupancy of the Premises that in Landlord’s reasonable judgment
would: (a) cause damage to the Building or any equipment, facilities or other systems therein,
beyond normal wear and tear; (b) materially impair the appearance of the Building; (c) materially
interfere with the efficient and economical maintenance, operation and repair of the Premises or
the Building or the equipment, facilities or systems thereof; (d) materially and adversely affect
any service provided to, and/or the use and occupancy by, any Building tenant or occupants; (e)
violate the certificate of occupancy issued for the Premises or the Building; (f) materially and
adversely affect the first-class image of the Building or (g) result in protests or civil disorder
or commotions at, or other disruptions of the normal business activities in, the Building.
Prohibited Use also includes the use of any part of the Premises for: (i) a restaurant or bar; (ii)
the preparation, consumption, storage, manufacture or sale of food or beverages (except in
connection with vending machines (provided that each machine, where necessary, shall have a
waterproof pan thereunder and be connected to a drain) and/or warming kitchens installed for the
use of Tenant’s employees only), liquor, tobacco or drugs; (iii) the business of photocopying,
multilith or offset printing (except photocopying in connection with Tenant’s own business); (iv) a
school or classroom (except for employee or customer training); (v) lodging or sleeping; (vi) the
operation of retail facilities (meaning a business whose primary patronage arises from the
generalized solicitation of the general public to visit Tenant’s offices in person without a prior
appointment) of a savings and loan association or retail facilities of any financial, lending,
securities brokerage or investment activity; (vii) a payroll office; (viii) a barber, beauty or
manicure shop; (ix) an employment agency or similar enterprise; (x) offices of any Governmental
Authority, any foreign government, the United Nations, or any agency or department of the
foregoing; (xi) the manufacture, retail sale, storage of merchandise or auction of merchandise,
goods or property of any kind to the general public which could reasonably be expected to create a
volume of pedestrian traffic substantially in excess of that normally encountered in the Premises;
(xii) the rendering of medical, dental or other therapeutic or diagnostic services; or (xiii) any
illegal purposes or any activity constituting a nuisance.

     Real Property: The Building, and any common or public areas or facilities, easements,
corridors, lobbies, sidewalks, loading areas, driveways, landscaped areas, air rights, development
rights, parking rights, skywalks, parking garages and lots, and any and all other rights,
structures or facilities operated or maintained in connection with or for the benefit of the
Building, and all parcels or tracts of land on which all or any portion of the Building or any of
the other foregoing items are located, and any fixtures, machinery, apparatus, systems and
equipment, furniture and other personal property located thereon or therein and used in connection
therewith. Landlord reserves the right to make alterations or additions to

EXHIBIT B 
(2)

 

or to change the location of elements of the Property. Landlord shall have the right from
time to time, in Landlord’s sole discretion, to designate those portions of the Real Property to be
provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the
Real Property (such areas, together with such other portions of the Real Property designated by
Landlord, in its sole discretion, including certain areas designated for the exclusive use of
certain tenants, or to be shared by Landlord and certain tenants, are collectively referred to
herein as the “common areas”).

     Requirements: All present and future laws, rules, orders, ordinances, regulations, statutes,
requirements, codes and executive orders, extraordinary and ordinary of (i) all Governmental
Authorities, including the Americans With Disabilities Act, 42 U.S.C. §12101 (et seq.), and any
law of like import, and all rules, regulations and government orders with respect thereto, and any
of the foregoing relating to Hazardous Materials, environmental matters, public health and safety
matters and landmarks protection, (ii) any applicable fire rating bureau or other body exercising
similar functions, affecting the Real Property or the maintenance, use or occupation thereof, or
any street, avenue or sidewalk comprising a part of or in front thereof or any vault in or under
the same, (iii) all requirements of all insurance bodies affecting the Premises, and (iv) utility
service providers.

     Rules and Regulations: The rules and regulations annexed to and made a part of this Lease as
Exhibit F, as they may be modified from time to time by Landlord.

     Specialty Alterations: Alterations which are not standard office installations such as
kitchens, executive bathrooms, raised computer floors, computer room installations, supplemental
HVAC equipment, safe deposit boxes, vaults, libraries or file rooms requiring reinforcement of
floors, internal staircases, slab penetrations, conveyors, dumbwaiters, and other Alterations of a
similar character. All Specialty Alterations are Above-Building Standard Installations.

     Substantial Completion: As to any construction performed by any party in the Premises,
“Substantial Completion” or “Substantially Completed” means that such work has been completed, as
reasonably determined by Landlord’s architect, in accordance with (a) the provisions of this Lease
applicable thereto, (b) the plans and specifications for such work, and (c) all applicable
Requirements, except for minor details of construction, decoration and mechanical adjustments, if
any, the noncompletion of which does not materially interfere with Tenant’s use of the Premises or
which in accordance with good construction practices should be completed after the completion of
other work in the Premises or Building.

     Tenant Delay: Any action or inaction by Tenant, which actually delays Landlord in fulfilling
any of Landlord’s obligations under this Lease.

     Tenant Party: Tenant and any subtenants or occupants of the Premises and their respective
agents, contractors, subcontractors, employees, invitees or licensees.

     Tenant’s Property: Tenant’s movable fixtures and movable partitions, telephone and other
equipment, computer systems, trade fixtures, furniture, furnishings, and other items of personal
property which are removable without substantial damage to the Building.

     
Unavoidable Delays: Landlord’s inability to fulfill or delay in fulfilling any of its obligations
under this Lease expressly or impliedly to be performed by Landlord or Landlord’s inability to make
or delay in making any repairs, additions, alterations, improvements or decorations or Landlord’s
inability to supply or delay in supplying any equipment or fixtures, if Landlord’s inability or
delay is due to or arises by reason of strikes, labor troubles or by accident, or by any cause
whatsoever beyond Landlord’s reasonable control, including governmental preemption in connection
with a national emergency, Requirements or shortages, or unavailability of labor, fuel, steam,
water, electricity or materials, or delays caused by Tenant or other tenants, mechanical breakdown,
acts of God, enemy action, civil commotion, fire or other casualty.

EXHIBIT B 
(3)

 

EXHIBIT C

WORK LETTER

     1. General.

          (a) The purpose of this Work Letter is to set forth how the interior improvements in the
Premises (the “Initial Installations”) are to be constructed, who will do the construction of the
Initial Installations, who will pay for the construction of the Initial Installations, and the time
schedule for completion of the construction of the Initial Installations. The Initial
Installations shall comprise (i) reconfiguring the existing work stations in accordance with the
Space Plans (as hereinafter defined); (ii) install (or otherwise provide) a data room consistent
with the Space Plans; and (iii) performing such other improvements as Tenant may propose as
hereinafter provided which may include, but not be limited to, wiring, data distribution, telecom
and connections to the data room and QA Lab.

          (b) Except as defined in this Work Letter to the contrary, all terms utilized in this Work
Letter shall have the same meaning as the defined terms in the Lease.

          (c) The terms, conditions and requirements of the Lease, except where clearly inconsistent or
inapplicable to this Work Letter, are incorporated into this Work Letter.

          (d) Except for the Initial Installations to be constructed pursuant to this Agreement, Tenant
accepts the Premises in its “as is” condition and acknowledges that it has had an opportunity to
inspect the Premises prior to signing the Lease.

          (e) Attached hereto as Schedule “1” are certain preliminary space plans and cost estimates for
the Initial Installations (the “Space Plans”) prepared by Merlyn Lunsford (the “Space Planner”).
The Space Plans, once approved by Tenant, and shall be utilized by the Contractor in the
performance of the Initial Installations.

     2. Construction Schedule and Procedures. Landlord shall arrange for the construction
of the Initial Installations in accordance with the following schedule:

          (a) Landlord shall not be required to perform, and Tenant shall not request, work which would
(i) require changes to structural components of the Building or the exterior design of the
Building, (ii) require any material modification to the Building Systems or other Building
installations outside the Premises, (iii) not comply with all applicable Requirements, or (iv) be
incompatible with either the Certificate of Occupancy issued for the Building or the Building’s
status as a first-class office building. Any changes required by any Governmental Authority
affecting the construction of the Premises shall be performed by Landlord, at Tenant’s sole cost,
and shall not be deemed to be a violation of the Space Plans or of any provision of this Work
Letter, and shall be deemed automatically accepted and approved by Tenant. Landlord shall give
notice to Tenant of any change in the Space Plans required by any Governmental Authority promptly
after Landlord receives notice thereof.

          (b) After the Space Plans are approved by Tenant, Tenant shall not make any changes in the
Space Plans without Landlord’s prior written approval, which shall not be unreasonably withheld or
delayed, provided that Landlord may, in the exercise of its sole and absolute discretion,
disapprove any proposed changes adversely affecting the Building’s structure, Building (including
Intrabuilding Network Telephone Cable), equipment, appearance or value of the Building.

          (c) As soon as reasonably possible following the Effective Date, Landlord shall enter into a
contract (the “Contract”) with Devcon Construction to perform the Initial Installations (the
“Contractor”). The Contractor shall be instructed to solicit bids from at least three
subcontractors for all major trades associated with construction of the Initial Installations. The
Contract shall provide for progress payments, and Tenant shall pay for the entire cost of the
Initial Installations in excess of

EXHIBIT C

 (1)

 

Landlord’s Contribution on or before the execution of the Contract. The cost of the Initial
Installations shall include the cost of (i) all work performed by Landlord, Contractor, Architect
or anyone else on behalf of Tenant, (ii) all materials and labor furnished on Tenant’s behalf,
(iii) preparing the Space Plans, and (iv) any building permits and engineering fees.

          (d) Landlord shall then instruct the Contractor to build the Initial Installations indicated
on the Space Plans as soon thereafter as reasonably possible, consistent with industry custom and
procedure, at Tenant’s sole and entire cost, except for Landlord’s Contribution (“Landlord Work”).

          (e) Any revisions by Tenant of the Space Plans or Tenant’s request for materials, finishes or
installations that are not readily available when required to be installed shall constitute “Tenant
Delays.” In addition, Landlord shall have the right to stop construction if Tenant fails to pay
such sums or otherwise materially defaults in the performance of its obligations under the Lease or
this Agreement, and all such periods in which work has stopped or been suspended shall constitute
“Tenant Delays.” If Tenant requests changes to the approved Space Plans, any delays reasonably
caused thereby in substantially completing construction of the Initial Installations caused thereby
shall also constitute Tenant Delays.

     3. Landlord’s Contribution. Landlord will pay an amount (“Landlord’s Contribution”)
toward the cost of the planning, design and construction of the Initial Installations in an amount
not to exceed $265,000.00. Landlord’s Contribution shall be payable solely on account of labor
directly related to the Initial Installations and materials delivered to the Premises in connection
with the Initial Installations, except that Tenant may apply Landlord’s Contribution to pay “soft
costs”, consisting of architectural, consulting, engineering and legal fees, moving costs, signage
and furniture and equipment (exclusive of computer equipment) acquired for use in the Premises,
incurred in connection with the Initial Installations. Tenant shall not be entitled to receive any
portion of Landlord’s Contribution not actually expended in the performance of the Initial
Installations in accordance with this Work Letter, nor shall Tenant have any right to apply any
unexpended portion of Landlord’s Contribution as a credit against Rent or any other obligation of
Tenant under the Lease; provided, however, that if the entire Landlord’s Contribution has not been
fully expended by the last day of the eighth month of the Term of the Lease, then Tenant may apply
any unfunded balance toward the Fixed Rent payable for the ninth and, if applicable, tenth month,
of the Term. If the cost of the planning, design and construction of the Initial Installations
exceeds the sum of Landlord’s Contribution, the difference shall be borne by Tenant and paid by
Tenant to Landlord at the time the Contract or any change order is signed.

     4. Change Orders. If Tenant requests any changes to the Space Plans, Landlord shall
not unreasonably withhold its consent to any such changes, provided the changes do not adversely
affect the Building’s structure, Building systems (including Intrabuilding Network Telephone
Cables), equipment, appearance or value, but, if such changes increase the cost of constructing the
Initial Installations shown on the Space Plans, Tenant shall bear such costs and shall pay such
estimated increased costs to Landlord at such time as the request is approved by Landlord. If the
actual increased costs are greater than the estimated increased costs, Tenant shall pay the
difference in increased costs to Landlord promptly upon demand therefor; similarly, if the actual
increased costs are less than the estimated increased costs, Landlord shall credit the amount of
such difference to Landlord’s Contribution. The costs charged by Landlord to Tenant caused by
Tenant’s requesting changes to the Initial Installations or the Space Plans shall be equal to the
sum of (a) the amount of money Landlord has to pay to cause the Initial Installations, as reflected
by revised Space Plans, to be constructed above the costs that Landlord would have had to pay to
cause the Initial Installations to be constructed if no changes had been made to the Space Plans
(“Differential”), and (b) any cancellation fees, reshipping charges or any other similar costs
incurred by Landlord in connection therewith. If such changes delay Landlord’s completion of the
work shown on the Space Plans, then such delay shall constitute Tenant Delays. Any other actions
of Tenant, or inaction by Tenant, which delays Landlord in completing the Initial Installations
shown on such Space Plans shall also constitute Tenant Delays. The failure of Tenant to pay any
amounts due hereunder within 10 days of the date such sums are due and payable shall constitute an
Event of Default under the Lease after the notice set forth in Section 15.1(a). Whenever possible
and practical, Landlord will utilize, for the construction of the Initial Installations, the items
and materials designated in the Space Plans;

EXHIBIT C 
(2)

 

provided, however, that whenever Landlord reasonably determines in its judgment that it is not
practical or efficient to use such materials, Landlord shall have the right, upon receipt of
Tenant’s consent, to substitute comparable items and materials. If Tenant refuses to grant such
consent, and Landlord is reasonably delayed in causing the Premises, or any part thereof, to be
Substantially Complete because of Tenant’s failure to permit the substitution of comparable items
and materials, such delay shall constitute Tenant Delays.

     5. Entry by Tenant and Its Agents; Designation of Tenant’s Construction Agent. Except
as hereinafter provided, neither Tenant nor its agents, employees, invitees or independent
contractors shall enter the Premises during the performance of Landlord’s Work except the early
access referenced in Section 2.2 of the Lease. Tenant hereby designates Vicky Ross as its
authorized agent (“Tenant’s Construction Agent”) for the purpose of submitting to Landlord and
authorizing any Change Orders and for the purpose of consulting with Landlord as to any and all
aspects of Landlord’s Work. Tenant’s Construction Agent shall have the right to inspect the
Premises during the course of Landlord’s Work provided Tenant’s Construction Agent shall make a
prior appointment with Landlord and/or its contractor at a mutually convenient time.

If Tenant shall enter upon the Premises or any other part of the Building prior to the completion
of Landlord’s Work, Tenant shall indemnify and save Landlord harmless from and against any and all
Losses arising from or claimed to arise as a result of (i) any act, neglect or failure to act of
Tenant or anyone entering the Premises or Building with Tenant’s permission, or (ii) any other
reason whatsoever arising out of Tenant’s entry upon the Premises or Building.

     6. Substantial Completion. The term “Substantial Completion” means that Landlord has
substantially completed the Initial Installations and other work it is obligated to perform
pursuant to this Agreement, and that this work shall be deemed complete, notwithstanding the fact
that minor details of construction, mechanical adjustments or decoration which do not materially
interfere with Tenant’s use of the Premises remain to be performed (items normally referred to as
“punch-list” items). The Premises shall be deemed Substantially Complete even though certain other
portions of the Building, which do not interfere with Tenant’s efficient conduct of its business,
have not been fully completed, and even though Tenant’s furniture, furniture systems, telephones,
telexes, telecopiers, photocopy machines, computers and other business machines or equipment have
not been installed, the purchase and installation of which shall be Tenant’s sole responsibility.
Subject to the correction by Landlord of the punch-list items, Tenant shall be obligated to accept
the Premises at such time as the Premises are Substantially Complete so long as the Initial
Installations are Substantially Complete.

     7. Miscellaneous.

          (a) Tenant agrees that, in connection with the Initial Installations and its use of the
Premises prior to the commencement of the Term of the Lease, Tenant shall have those duties and
obligations with respect thereto that it has pursuant to the Lease during the Term, except the
obligation for payment of rent, and further agrees that, except where caused by Landlord’s gross
negligence or willful misconduct, Landlord shall not be liable in any way for injury, loss, or
damage which may occur to any of the Initial Installations or installations made in the Premises,
or to any personal property placed therein, the same being at Tenant’s sole risk.

          (b) Except as expressly set forth herein, Landlord has no other agreement with Tenant and
Landlord has no other obligation to do any other work or pay any amounts with respect to the
Premises. Any other work in the Premises which may be permitted by Landlord pursuant to the terms
and conditions of the Lease shall be done at Tenant’s sole cost and expense and in accordance with
the terms and conditions of the Lease.

          (c) This Agreement shall not be deemed applicable to any additional space added to the
original Premises at any time or from time to time, whether by any options under the Lease or
otherwise, or to any portion of the original Premises or any additions thereto in the event of a
renewal or

EXHIBIT C 
(3)

 

extension of the initial term of the Lease, whether by any options under the Lease or
otherwise, unless expressly so provided in the Lease or any amendment or supplement thereto.

          (d) The failure by Tenant to pay any monies due Landlord pursuant to this Agreement within the
time period herein stated shall be deemed a default under the terms of the Lease for which Landlord
shall be entitled to exercise all remedies available to Landlord for nonpayment of Rent and
Landlord, may, if it so elects, discontinue construction of the Initial Installations until all
such sums are paid and Tenant has otherwise cured such default. All late payments shall bear
interest pursuant to Section 16.6 of the Lease.

EXHIBIT C 
(4)

 

EXHIBIT C

Schedule 1

Floor Plans

EXHIBIT C 
(5)

 

EXHIBIT C 
(6)

 

EXHIBIT D

Design Standards

          (a) HVAC. The Building HVAC System serving the Premises is designed to maintain average
temperatures within the Premises during Ordinary Business Hours of (i) not less than 68o F.
during the heating season when the outdoor temperature is 38o F. or more and (ii) not more than
78o F. and 50% humidity + 5% during the cooling season, when the outdoor temperatures are at 84o
F. dry bulb and 65o F. wet bulb, with, in the case of clauses (i) and (ii), a population load per
floor of not more than one person per 200 square feet of useable area, other than in dining and
other special use areas per floor for all purposes, and shades fully drawn and closed, including
1.0 watts per square foot of usable area of lighting load and 1.0 watts per square foot of usable
area of power load, and to provide at least .15 CFM of outside ventilation per square foot of
rentable area. Use of the Premises, or any part thereof, in a manner exceeding the foregoing
design conditions or rearrangement of partitioning after the initial preparation of the Premises
which interferes with normal operation of the air-conditioning service in the Premises may require
changes in the air-conditioning system serving the Premises at Tenant’s expense.

          (b) Electrical. The Building Electrical system serving the Premises is designed to provide:

               (i) 1.0 watts per usable square foot of high voltage (480/277 volt) connected power for
lighting, and

               (ii) 1.0 watts per usable square foot of low voltage (120/208 volt) connected power for
convenience receptacles.

EXHIBIT D
 (1)

 

EXHIBIT E

Cleaning Specifications

GENERAL CLEANING

NIGHTLY

     General Offices:

	 	1.	 	All hard surfaced flooring to be swept using approved dustdown preparation.
	 
	 	2.	 	Carpet sweep all carpets but with no requirement to move any furniture (e.g.,
desks, file cabinets, etc. not to be moved).
	 
	 	3.	 	Hand dust and wipe clean all furniture, fixtures and window sills.
	 
	 	4.	 	Empty all waste receptacles and remove wastepaper.
	 
	 	5.	 	Wash clean all Building water fountains and coolers.
	 
	 	6.	 	Sweep all private stairways.

     Lavatories:

	 	1.	 	Sweep and wash all floors, using proper disinfectants.
	 
	 	2.	 	Wash and polish all mirrors, shelves, bright work and enameled surfaces.
	 
	 	3.	 	Wash and disinfect all basins, bowls and urinals.
	 
	 	4.	 	Wash all toilet seats.
	 
	 	5.	 	Hand dust and clean all partitions, tile walls, dispensers and receptacles in
lavatories and restrooms.
	 
	 	6.	 	Empty paper receptacles, fill receptacles from Landlord supply and remove wastepaper.
	 
	 	7.	 	Fill toilet tissue holders from Landlord supply.
	 
	 	8.	 	Empty and clean sanitary disposal receptacles.

WEEKLY

	 	1.	 	Vacuum all carpeting and rugs, as well as any necessary spot cleaning.
	 
	 	2.	 	Dust all door louvers and other ventilating louvers within a person’s normal reach.
	 
	 	3.	 	Wipe clean all brass and other bright work.

NOT MORE THAN 3 TIMES PER YEAR

     High dust premises complete including the following:

EXHIBIT E
 (1)

 

	 	1.	 	Dust all pictures, frames, charts, graphs and similar wall hangings not reached
in nightly cleaning.
	 
	 	2.	 	Dust all vertical surfaces, such as walls, partitions, doors, door frames and
other surfaces not reached in nightly cleaning.
	 
	 	3.	 	Dust all venetian blinds.

WINDOW WASHING AND CARPET CLEANING

	 	1.	 	Exterior windows will be cleaned once per year and interior windows will be cleaned twice
per year.
	 
	 	2.	 	Carpets will be chemically cleaned once every two years.

EXHIBIT E
 (2)

 

EXHIBIT F

Rules and Regulations

     1. Nothing shall be attached to the outside walls of the Building. Other than Building
standard blinds, no curtains, blinds, shades, screens or other obstructions shall be attached to or
hung in or used in connection with any exterior window or entry door of the Premises, without the
prior consent of Landlord.

     2. No sign, advertisement, notice or other lettering visible from the exterior of the Premises
shall be exhibited, inscribed, painted or affixed to any part of the Premises without the prior
written consent of Landlord. All lettering on doors shall be inscribed, painted or affixed in a
size, color and style acceptable to Landlord.

     3. The grills, louvers, skylights, windows and doors that reflect or admit light and/or air
into the Premises or Common Areas shall not be covered or obstructed by Tenant, nor shall any
articles be placed on the window sills, radiators or convectors.

     4. Landlord shall have the right to prohibit any advertising by any Tenant which, in
Landlord’s opinion, tends to impair the reputation of the Building, and upon written notice from
Landlord, Tenant shall refrain from or discontinue such advertising.

     5. Common Areas shall not be obstructed or encumbered by any Tenant or used for any purposes
other than ingress of egress to and from the Premises and for delivery of merchandise and equipment
in a prompt and efficient manner, using elevators and passageways designated for such delivery by
Landlord.

     6. Except in those areas designated by Tenant as “security areas,” all locks or bolts of any
kind shall be operable by the Building’s Master Key. No locks shall be placed upon any of the
doors or windows by Tenant, nor shall any changes be made in locks or the mechanism thereof which
shall make such locks inoperable by the Building’s Master Key. Tenant shall, upon the termination
of its Lease, deliver to Landlord all keys of stores, offices and lavatories, either furnished to
or otherwise procured by Tenant and in the event of the loss of any keys furnished by Landlord,
Tenant shall pay to Landlord the cost thereof.

     7. Tenant shall keep the entrance door to the Premises closed at all times.

     8. All movement in or out of any freight, furniture, boxes, crates or any other large object
or matter of any description must take place during such times as Landlord may prescribe. In
connection therewith, Tenant shall only utilize the freight elevator located in the southern/rear
portion of the Building. Landlord reserves the right to inspect all articles to be brought into
the Building and to exclude from the Building all articles which violate any of these Rules and
Regulations or the Lease. Landlord may require that any person leaving the public areas of the
Building with any article to submit a pass, signed by an authorized person, listing each article
being removed, but the establishment and enforcement of such requirement shall not impose any
responsibility on Landlord for the protection of any Tenant against the removal of property
from the Premises.

     9. All hand trucks shall be equipped with rubber tires, side guards and such other safeguards
as Landlord may require.

     10. No Tenant Party shall be permitted to have access to the Building’s roof, mechanical,
electrical or telephone rooms without permission from Landlord.

EXHIBIT F
(1)

 

     11. Tenant shall not permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Landlord or other occupants of the Building by reason of noise,
odors, vibrations or interfere in any way with other tenants or those having business therein.

     12. Tenant shall not employ any person or persons other than the janitor of Landlord for the
purpose of cleaning the Premises, unless otherwise agreed to by Landlord. Tenant shall not cause
any unnecessary labor by reason of such Tenant’s carelessness or indifference in the preservation
of good order and cleanliness.

     13. Tenant shall store all its trash and recyclables within its Premises. No material shall
be disposed of which may result in a violation of any Requirement. All refuse disposal shall be
made only though entryways and elevators provided for such purposes and at such times as Landlord
shall designate. Tenant shall use the Building’s hauler.

     14. Tenant shall not deface any part of the Building. No boring, cutting or stringing of
wires shall be permitted, except with prior consent of Landlord, and as Landlord may direct.

     15. The water and wash closets, electrical closets, mechanical rooms, fire stairs and other
plumbing fixtures shall not be used for any purposes other than those for which they were
constructed and no sweepings, rubbish, rags, acids or other substances shall be deposited therein.
All damages resulting from any misuse of the fixtures shall be borne by Tenant where a Tenant Party
caused the same.

     16. Tenant, before closing and leaving the Premises at any time, shall see that all lights,
water faucets, etc. are turned off. All entrance doors in the Premises shall be kept locked by
Tenant when the Premises are not in use.

     17. No bicycles, in-line roller skates, vehicles or animals of any kind (except for seeing eye
dogs) shall be brought into or kept by any Tenant in or about the Premises or the Building.

     18. Canvassing or soliciting in the Building is prohibited.

     19. Employees of Landlord or Landlord’s Agent shall not perform any work or do anything
outside of the regular duties, unless under special instructions from the office of Landlord or in
response to any emergency condition.

     20. Landlord reserves the right to exclude from the Building during other than Ordinary
Business Hours all persons who do not present a valid Building pass. Tenant shall be responsible
for all persons for whom a pass shall be issued at the request of Tenant and shall be liable to
Landlord for all acts of such persons.

     21. Landlord shall not be responsible to Tenant or to any other person or entity for the
non-observance or violation of these Rules and Regulations by any other tenant or other person or
entity.

EXHIBIT
F
(2)

 

EXHIBIT F-1

RECREATION CENTER, FITNESS CENTER AND SPORT COURT RULES AND REGULATIONS

RECREATION CENTER

	 	•	 	Hours of Operation: Business Days: 4:00 AM – 10:00 PM; Saturday, Sunday and Observed
Holidays: 8:00 AM – 6:00 PM.
	 
	 	•	 	The Recreation Center is solely for use by individuals who are either directly employed
by Franklin Templeton Investments (“FTI”) or its tenants. Contractors, family members and
other individuals who are not employed by FTI or its tenants may not utilize the Recreation
Center.
	 
	 	•	 	Food and drinks are not to be placed on any of the game tables or machines.
	 
	 	•	 	Users are not permitted to sit on the pool, ping pong, or foosball tables.
	 
	 	•	 	Ping pong equipment and darts are supplied for general use and may not be removed from
the Fitness Center.
	 
	 	•	 	None of the game tables or game machines may be moved from their existing locations.
	 
	 	•	 	Shouting, profanity, roughhousing and other unprofessional behavior are not permitted.
	 
	 	•	 	Please clean up after and do not leave trash or other items on the tables.
	 
	 	•	 	Report any problems with equipment to Facilities at (650) 312-4212 (or internally at
ext. 24212).

Failure to comply with the above Rules and Regulations may result in the loss of
Recreation Center privileges

EXHIBIT F-1
(1)

 

EXHIBIT G

Additional Monument Sign

Site Plan with Location of Monument Sign

Sample Monument Sign with Dimensions

EXHIBIT G
(1)

 

EXHIBIT H

Furniture Schedule

Building 910, Floor 2 & 3

Furniture Listing

Date Issued: September 9,2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	910/2	 	910/3	 	Total
	Furniture Type	 	Components	 	Qty	 	Qty	 	Qty
	Furniture for Work Spaces:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Director’s Office Setup

	 	Desk peninsula/return, overhead cabinets, mobile pedestal, 4 drawer-credenza, round meeting table, 1 task chair & 4 guest chairs
	 	 	6	 	 	 	16	 	 	 	22	 
	Manager’s Office Setup

	 	Desk peninsula/return, overhead cabinets, mobile pedestal, 4 drawer-credenza, 1 task chair & 2 guest chairs
	 	 	16	 	 	 	18	 	 	 	34	 
	Interior Office/enclave Set up

	 	(Set up varies) most typical setup: 8x8L shaped furniture systems: corner unit, 2 returns & guest chair
	 	 	0	 	 	 	2	 	 	 	2	 
	Super Cube

	 	8x12 size workstation (size & panel height=varies); corner unit with 2 returns, lateral file, mobile ped, task chair & 2 guest chairs.
	 	 	2	 	 	 	11	 	 	 	13	 
	8x8L cube

	 	8x8 size workstation (panel height=varies); corner table with 2 returns, lateral file, mobile ped & task chair.
	 	 	102	 	 	 	57	 	 	 	159	 
	6x8L Cube

	 	6x8 size workstation (panel height=varies); corner table with 2 returns, lateral file, mobile ped &task chair
	 	 	10	 	 	 	81	 	 	 	91	 
	Desking System (6 bullpens x 8 desks)

	 	Components per desk: 48” wide work surface, mobile ped, task chair; Components per bullpen: 8 desks, 4 rectangular meeting tables & 3
printer stations
	 	 	48	 	 	 	0	 	 	 	48	 
	Desking Systems (others)

	 	48” wide rectangular desk & task chair
	 	 	0	 	 	 	2	 	 	 	2	 
	Work Room Desking System

	 	Varies
	 	 	2	 	 	 	 	 	 	 	2	 
	Reception Station

	 	8x8 size workstation: Wood panel outside, fabric panel inside, lateral file, mobile ped, task chair & wood transaction counter
	 	 	 	 	 	 	1	 	 	 	1	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Work Spaces

	 	 	 	 	186	 	 	 	188	 	 	 	374	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Furniture for support Spaces:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	File Cabinets-metal

	 	Metal file cabinet storage units (height varies but typical heights are 4 drawers or 2 drawers
	 	 	130	 	 	 	83	 	 	 	213	 
	Bookshelves/shelving

	 	shelving (size varies)
	 	 	23	 	 	 	 	 	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Conference Set up#1

	 	Complete Conference Set up-1 table, 14 chairs & 1 credenza (location: front)
	 	 	0	 	 	 	2	 	 	 	2	 
	Conference Set up#2

	 	Complete Conference Set up-1 table, 12 chairs & 1 credenza (location: front)
	 	 	2	 	 	 	0	 	 	 	2	 
	Conference Set up#3

	 	Complete Conference Set up-1 table, 10 chairs & 1 credenza (location: front)
	 	 	2	 	 	 	2	 	 	 	4	 
	Conference Set up#4

	 	Complete Conference Set up-1 table, 10 chairs & 1 credenza (location: back)
	 	 	1	 	 	 	1	 	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Break Room Set Up

	 	Break Room Set Up (4 tables + 16 chairs)
	 	 	1	 	 	 	1	 	 	 	2	 
	Kitchenette Set up

	 	Kitchenette Set up (2 tables + 4-6 chairs)
	 	 	1	 	 	 	1	 	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Enclaves Set up

	 	Enclaves Set up (soft seating + table)
	 	 	2	 	 	 	1	 	 	 	3	 
	Waiting Area Set up

	 	Waiting Area Set up(2 lounge chairs + 1 side table)
	 	 	 	 	 	 	1	 	 	 	1	 
	Collaboration Areas

	 	Collaboration Areas (round tables in open areas)
	 	tbd
	 	tbd
	 	 	 	 

EXHIBIT H
(1)

 

EXHIBIT
I

Form of Letter of Credit

[LETTERHEAD OF ISSUER OF LETTER OF CREDIT]

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF______

	 	 	 
	DATE:

	 	September ___, 2009
	 
	BENEFICIARY:

	 	Franklin Templeton Companies, LLC
	 
	APPLICANT:

	 	DemandTec, Inc.
	 
	AMOUNT:

	 	US$917,011.20 (NINE HUNDRED SEVENTEEN THOUSAND ELEVEN AND
20/100 U.S. DOLLARS)
	 
	EXPIRATION DATE:
	 	 
	 
	LOCATION:

	 	AT OUR COUNTERS IN SANTA CLARA, CALIFORNIA
	 
	DEAR SIR/MADAM:
	 	 

WE HEREBY
ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF
______ IN YOUR FAVOR
AVAILABLE BY YOUR DRAFTS DRAWN ON US AT SIGHT IN THE FORM OF “EXHIBIT B” ATTACHED AND ACCOMPANIED
BY THE FOLLOWING DOCUMENTS:

	 	1.	 	THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY.
	 
	 	2.	 	SIGHT DRAFTS DRAWN ON US.
	 
	 	3.	 	A DATED CERTIFICATION FROM THE BENEFICIARY SIGNED BY AN AUTHORIZED OFFICER,
FOLLOWED BY HIS/HER DESIGNATED TITLE, STATING THE FOLLOWING:

“THE UNDERSIGNED BEING A DULY AUTHORIZED OFFICER OF _______________ (INSERT NAME OF BENEFICIARY AT
TIME OF DRAWING ONLY) (“BENEFICIARY”) HEREBY REPRESENTS AND WARRANTS THAT THE AMOUNT OF THE
ACCOMPANYING DRAFT IS DUE AND OWING TO THE UNDERSIGNED IN ACCORDANCE WITH THE PROVISIONS OF THAT
CERTAIN LEASE DATED SEPTEMBER ___, 2009 (THE “LEASE”) BY AND BETWEEN THE BENEFICIARY, AS LANDLORD,
AND APPLICANT, AS TENANT.”

PARTIAL DRAWS ARE ALLOWED. THIS ORIGINAL LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS HEREUNDER FOR
ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE BENEFICIARY UNLESS IT IS FULLY
UTILIZED.

IRREVOCABLE
STANDBY LETTER OF CREDIT NO. SVBSF _______

DATED: ___________________________

THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED FOR AN ADDITIONAL PERIOD OF ONE YEAR, WITHOUT
AMENDMENT, FROM THE PRESENT OR EACH FUTURE EXPIRATION DATE UNLESS AT LEAST XX DAYS PRIOR TO THE
THEN CURRENT EXPIRATION DATE WE SEND

EXHIBIT I
(1)

 

YOU A NOTICE BY REGISTERED MAIL/OVERNIGHT COURIER SERVICE AT THE ABOVE ADDRESS THAT THIS LETTER OF
CREDIT WILL NOT BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE. IN NO EVENT SHALL THIS LETTER OF
CREDIT BE AUTOMATICALLY EXTENDED BEYOND ____________.

THIS LETTER OF CREDIT MAY ONLY BE TRANSFERRED IN ITS ENTIRETY BY THE ISSUING BANK, ASSUMING SUCH
TRANSFER TO SUCH TRANSFEREE WOULD BE IN COMPLIANCE WITH THEN APPLICABLE LAW AND REGULATIONS,
INCLUDING BUT NOT LIMITED TO THE REGULATIONS OF THE U.S. DEPARTMENT OF TREASURY AND U.S. DEPARTMENT
OF COMMERCE, UPON OUR RECEIPT OF THE ATTACHED “EXHIBIT A” DULY COMPLETED AND EXECUTED BY THE
BENEFICIARY AND ACCOMPANIED BY THE ORIGINAL LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY, TOGETHER
WITH THE PAYMENT OF OUR TRANSFER FEE 1/4 OF 1% OF THE TRANSFER AMOUNT (MINIMUM USD 250.00). THE
CORRECTNESS OF THE SIGNATURE AND TITLE OF THE PERSON SIGNING THE TRANSFER FORM MUST BE VERIFIED BY
YOUR BANK.

DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF CREDIT.

DOCUMENTS MUST BE FORWARDED TO US BY OVERNIGHT DELIVERY SERVICE TO: SILICON VALLEY BANK, 3003
TASMAN DRIVE, SANTA CLARA CA 95054, ATTN: INTERNATIONAL DIVISION.

WE HEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONA FIDE HOLDERS THAT THE DRAFTS DRAWN UNDER AND
IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON
PRESENTATION TO THE DRAWEE, IF NEGOTIATED ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT.

IF ANY INSTRUCTIONS ACCOMPANYING A DRAWING UNDER THIS LETTER OF CREDIT REQUEST THAT PAYMENT IS TO
BE MADE BY TRANSFER TO YOUR ACCOUNT WITH ANOTHER BANK, WE WILL ONLY EFFECT SUCH PAYMENT BY FED WIRE
TO A U.S. REGULATED BANK, AND WE AND/OR SUCH OTHER BANK MAY RELY ON AN ACCOUNT NUMBER SPECIFIED IN
SUCH INSTRUCTIONS EVEN IF THE NUMBER IDENTIFIES A PERSON OR ENTITY DIFFERENT FROM THE INTENDED
PAYEE.

THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (ISP98), INTERNATIONAL
CHAMBER OF COMMERCE, PUBLICATION NO. 590.

	 	 	 
	 
	 	 
	AUTHORIZED SIGNATURE
	 	AUTHORIZED SIGNATURE

EXHIBIT I
(2)

 

EXHIBIT “A”

DATE:

	 	 	 	 	 
	TO:
	 	SILICON VALLEY BANK

3003 TASMAN DRIVE

SANTA CLARA, CA 95054
	 	 
	 
	RE:
	 	STANDBY LETTER OF CREDIT
	 	 
	NO.:
	 	 

	 	 
	ISSUED BY
	 	 
	 	 
	ATTN:
	 	INTERNATIONAL DIVISION

SILICON VALLEY BANK, SANTA CLARA
	 	 
	 
	 	 	STANDBY LETTERS OF CREDIT 

L/C AMOUNT
	 	 

GENTLEMEN:

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

	 	 	 	 	 
	 	 	(NAME OF TRANSFEREE)
 

	 	 
	 	 	(ADDRESS)
 

	 	 
	 	 	 
 

	 	 

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS
AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE
TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF,
INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER
AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO
THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

EXHIBIT I 
(3)

 

THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE TRANSFER
ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF
TRANSFER.

SINCERELY,

	 	 	 
	 

(BENEFICIARY’S NAME)

	 	 
	 
	 	 
	 

(SIGNATURE OF BENEFICIARY)

	 	 
	 
	 	 
	 

(SIGNATURE AUTHENTICATED)

	 	 
	 
	 	 
	 

(NAME OF BANK)

	 	 
	 
	 	 
	 

(AUTHORIZED SIGNATURE)

	 	 

 
SIGNATURE AUTHENTICATED

The name(s), title(s), and signature(s) conform
to that/those on file with us for the company
and the signature(s) is/are authorized to
execute this instrument.

We further confirm that the company has been
identified applying the appropriate due
diligence and enhanced due diligence as
required by BSA and all its subsequent
amendments.

 

(Name of Bank)

EXHIBIT I
(4)

 

EXHIBIT “B”

	 	 	 
	DATE:

	 	REF. NO.
	 
	 	 
	AT SIGHT OF THIS DRAFT
	 	 
	 
	 	 
	PAY TO THE ORDER OF

	 	US$
	 
	 	 
	USDOLLARS
	 	 
	 
	 	 

DRAWN UNDER SILICON VALLEY BANK, SANTA CLARA, CALIFORNIA, STANDBY
LETTER OF

 CREDIT NO.
                                        
 DATED:                                         

	 	 	 
	TO:
	 	SILICON VALLEY BANK

	 	 	3003 TASMAN DRIVE

	 	 	SANTA CLARA, CA 95054

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	(BENEFICIARY’S NAME) 	 
	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Authorized Signature 	 
	 	 	 	 

EXHIBIT I 
(5)

 

	 	 	 	 	 

GUIDELINES TO PREPARE THE DRAFT

	1.	 	DATE: ISSUANCE DATE OF DRAFT.
	 
	2.	 	REF. NO.: BENEFICIARY’S REFERENCE NUMBER, IF ANY.
	 
	3.	 	PAY TO THE ORDER OF: NAME OF BENEFICIARY AS INDICATED IN THE L/C (MAKE SURE BENEFICIARY
ENDORSES IT ON THE REVERSE SIDE).US$: AMOUNT OF DRAWING IN FIGURES.
	 
	4.	 	USDOLLARS: AMOUNT OF DRAWING IN WORDS.
	 
	5.	 	LETTER OF CREDIT NUMBER: SILICON VALLEY BANK’S STANDBY L/C NUMBER THAT PERTAINS TO THE
DRAWING.
	 
	6.	 	DATED: ISSUANCE DATE OF THE STANDBY L/C.
	 
	7.	 	BENEFICIARY’S NAME: NAME OF BENEFICIARY AS INDICATED IN THE L/C.
	 
	8.	 	AUTHORIZED SIGNATURE: SIGNED BY AN AUTHORIZED SIGNER OF BENEFICIARY.

IF YOU NEED FURTHER ASSISTANCE IN COMPLETING THIS DRAFT, PLEASE CALL OUR L/C PAYMENT SECTION AND
ASK FOR:

ALICE DA LUZ: 408-654-7120

EFRAIN TUVILLA: 408-654-6349

EXHIBIT I 
(6)exv4wa

Exhibit 4(a)

     This Security is in global form within the meaning of the Indenture hereinafter referred to
and is registered in the name of The Depository Trust Company, a New York corporation (“DTC”), or a
nominee of DTC, which may be treated by the Company, the Trustee and any agent thereof as owner and
holder of this Security for all purposes.

     Unless this certificate is presented by an authorized representative of DTC to the Company or
its agent for registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Securities in definitive form in the
limited circumstances referred to in the Indenture, this global Security may not be transferred
except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of
DTC or by DTC or any such nominee to a successor depositary or a nominee of such successor
depositary.

	 	 	 
	Registered

	 	Principal Amount: $500,000,000
	CUSIP No. 73755L AG2
	 	 

POTASH CORPORATION OF SASKATCHEWAN INC.

3.75% Notes due September 30, 2015

     POTASH CORPORATION OF SASKATCHEWAN INC., a Canadian corporation (hereinafter called the
“Company,” which term shall include any successor entity under the Indenture), for value received,
hereby promises to pay to Cede & Co., as nominee for DTC, or registered assigns, upon presentation,
the principal sum of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on September 30, 2015 and to pay
interest thereon from September 28, 2009 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on March 30 and September 30
in each year, commencing March 30, 2010, at the rate of 3.75% per annum, until the entire principal
amount hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be March 15 or September 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the

 

 

payment of Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders
of Securities of this series not more than 15 days and not less than 10 days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the Indenture.

     Payment of the principal of, interest on and Additional Amounts, if any, with respect to this
global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and
interest received by it in respect of this global Security to the accounts of the beneficial owners
thereof; provided, however, that if this Security is not a global Security, payment of the
principal of, interest on and Additional Amounts, if any, with respect to this Security will be
made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in
the Indenture, in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; and provided, further, that at the option
of the Company payment of interest may be made by (a) check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (b) transfer to an
account of the Person entitled thereto located inside the United States.

     Additional provisions of this Security are set forth following the signature page hereof,
which provisions shall for all purposes have the same effect as if set forth at this place.

2

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed this 28th day of
September, 2009.

	 	 	 	 	 	 	 
	 	 	POTASH CORPORATION OF SASKATCHEWAN INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Wayne R. Brownlee
	 	 
	 

	 	Title:
	 	Executive Vice President, Treasurer
and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Joseph A. Podwika
	 	 
	 

	 	Title:
	 	Senior Vice President, General
Counsel and Secretary	 	 

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one or all of the Securities of the series designated “3.75% Notes due September 30,
2015” pursuant to the within-mentioned Indenture.

	 	 	 	 	 
	THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK,

as Trustee
	 
	 	 	 	 
	By:
	 	 	 	 
	 	

	 	 
	
Authorized Signatory
	 	 

4

 

3.75% Notes due September 30, 2015

     This Security is one or all of a duly authorized issue of securities of the Company (herein
called the “Securities”) issued and to be issued in one or more series under an Indenture, dated as
of February 27, 2003 (herein called the “Indenture”), between the Company and The Bank of Nova
Scotia Trust Company of New York, as trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one or all of the series designated as the “3.75% Notes due September 30, 2015.”

     The Securities in this series are redeemable, in whole or in part, at the Company’s option at
any time and from time to time at a Redemption Price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed and (ii) the sum of the present values of the
Remaining Scheduled Payments discounted to the relevant Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 25
basis points, together with, in each case, accrued interest on the principal amount of the
Securities to be redeemed to the Redemption Date.

     In connection with such optional redemption, the following defined terms apply:

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately
preceding that Redemption Date) or interpolated (on a day count basis) of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security or securities selected
by the Independent Investment Banker that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Securities of this series.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the average of the
Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker
for the Securities obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company to act as the “Independent Investment Banker.”

     “Reference Treasury Dealer” means Banc of America Securities LLC and HSBC Securities (USA)
Inc. and their respective successors and two other nationally recognized investment banking firms,
each of which is a primary U.S. Government securities dealer in New York City (herein called a
“Primary Treasury Dealer”) specified from time to time by the

5

 

Company; provided, however, that if any of the foregoing shall cease to be a Primary Treasury
Dealer, the Company shall substitute therefor another nationally recognized investment banking firm
that is a Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker by such Reference
Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding that
Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be redeemed, the
remaining scheduled payments of the principal thereof and interest thereon that would be due after
the related Redemption Date but for such redemption; provided, however, that, if that Redemption
Date is not an Interest Payment Date with respect to such Security, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued
thereon to that Redemption Date.

     Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of the Securities in this series to be redeemed. On and after any
Redemption Date, interest will cease to accrue on the Securities in this series or any portion
thereof called for redemption. On or before any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent money sufficient to pay the Redemption Price of and accrued interest
on the Securities in this series to be redeemed on such date. If less than all the Securities in
this series are to be redeemed, the Securities to be redeemed shall be selected by the Trustee at
the Company’s direction by such method as the Company and the Trustee shall deem fair and
appropriate. The Redemption Price shall be calculated by the Independent Investment Banker, and the
Company, the Trustee and any Paying Agent for the Securities of this series shall be entitled to
rely on such calculation.

     If a Change of Control Triggering Event occurs, unless the Company has exercised its right to
redeem the Securities as described above, it will be required to make an offer to repurchase all,
or any part (equal to $1,000 or an integral multiple thereof), of each Holder’s Securities pursuant
to the offer described below (the “Change of Control Offer”) on the terms set forth herein. In the
Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the
aggregate principal amount of Securities repurchased plus accrued and unpaid interest, if any, on
the Securities repurchased, to the date of purchase (the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event, the Company will be required
to mail a notice to Holders of Securities describing the transaction or transactions that
constitute the Change of Control Triggering Event and offering to repurchase the Securities on the
date specified in the notice, which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures required herein and described in such notice. The Company must comply with the
requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and any other securities laws and regulations thereunder to the extent those

6

 

laws and regulations are applicable in connection with the repurchase of the Securities as a result
of a Change of Control Triggering Event. To the extent that the provisions of any applicable
securities laws or regulations conflict with the Change of Control provisions herein, the Company
will be required to comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the Change of Control provisions herein by virtue of
such conflicts.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Securities or portions of Securities properly tendered pursuant to
the Change of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect
of all Securities or portions of Securities properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Securities properly accepted together
with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of
Securities being purchased by the Company.

     The Paying Agent will be required to mail promptly to each Holder who properly tendered
Securities the purchase price for such Securities and the Trustee will be required to authenticate
and mail (or cause to be transferred by book entry) promptly to each such Holder a new Security
equal in principal amount to any unpurchased portion of the Securities surrendered, if any;
provided that each new Security will be in a principal amount of $1,000 or an integral multiple
thereof.

     For purposes of the foregoing discussion of a repurchase at the option of Holders, the
following definitions are applicable:

     “Below Investment Grade Rating Event” means the rating on the Securities is changed from an
Investment Grade Rating to below an Investment Grade Rating by each of the Rating Agencies (as
defined below) on any date from the date of the public notice of an arrangement that could result
in a Change of Control until the end of the 60-day period following public notice of the occurrence
of the Change of Control (which 60-day period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by any of the Rating
Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger, amalgamation,
arrangement or consolidation), in one or a series of related transactions, of all or substantially
all of the Company’s properties or assets and those of its subsidiaries taken as a whole to any
Person other than the Company or one of its subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger, amalgamation, arrangement or consolidation) the result
of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50%
of the total voting power in the aggregate of all classes of the

7

 

Company’s voting stock normally entitled to vote in elections of directors; or (3) the first day on
which a majority of the members of the Company’s Board of Directors are not Continuing Directors.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Company’s
Board of Directors who (1) was a member of such Board of Directors on September 28, 2009; or (2)
was nominated for election or elected to such Board of Directors with the approval of a majority of
the Continuing Directors who were members of such Board of Directors at the time of such nomination
or election (either by a specific vote or by approval of the Company’s proxy statement in which
such member was named as a nominee for election as a director, without objection to such
nomination).

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Person” means any individual, partnership, corporation, limited liability company, joint
stock company, business trust, trust, unincorporated association, joint venture or other entity, or
a government or political subdivision or agency thereof.

     “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either Moody’s or S&P ceases
to rate the Securities or fails to make a rating of the Securities publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as
certified by a resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or
both of them, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     The failure by the Company to comply with its obligations in the event of a Change of Control
Triggering Event described above will constitute an Event of Default with respect to the
Securities.

     The Indenture contains provisions for defeasance of (a) the entire indebtedness of the Company
on this Security and (b) certain restrictive covenants and the related defaults and Events of
Default applicable to the Company, in each case, upon compliance by the Company with certain
conditions set forth in the Indenture, which provisions apply to this Security. This Security is
not subject to repayment at the Holder’s option.

     If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the

8

 

manner and with the effect provided in the Indenture. Notwithstanding the previous sentence,
if an Event of Default occurs as a result of the failure by the Company to comply with its
obligations in the event of a Change of Control Triggering Event as described above, the principal
of, and any premium and accrued interest on the Notes will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder of the Securities.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default and offered the Trustee reasonable
indemnity and the Trustee shall not have received from the Holders of a majority in principal
amount of the Securities of this series at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Security for the enforcement of any payment of principal hereof or any interest on
or after the respective due dates expressed herein.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in principal amount of the Outstanding Securities. The
Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities at the time Outstanding, on behalf of the Holders of all Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any Place of Payment where
the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar for
the Securities duly executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of authorized denomination and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

9

 

     The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations set forth therein, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the
contrary.

     The obligations of the Company under the Indenture and this Security and all documents
delivered in the name of the Company in connection herewith and therewith do not and shall not
constitute personal obligations of the directors, officers, employees, agents or shareholders of
the Company or any of them, and shall not involve any claim against or personal liability on the
part of any of them, and all persons including the Trustee shall look solely to the assets of the
Company for the payment of any claim thereunder or for the performance thereof and shall not seek
recourse against such directors, officers, employees, agents or shareholders of the Company or any
of them or any of their personal assets for such satisfaction. The performance of the obligations
of the Company under the Indenture and this Security and all documents delivered in the name of the
Company in connection therewith shall not be deemed a waiver of any rights or powers of the Company
or its directors or its shareholders under the Company’s Articles of Continuance.

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Indenture and the Securities, including this Security, shall be governed by and construed
in accordance with the law of the State of New York.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the correctness or accuracy of
such CUSIP numbers as printed on the Securities, and reliance may be placed only on the other
identification numbers printed hereon.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

10

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

the within Security of Potash Corporation of Saskatchewan Inc. and                                          hereby does irrevocably constitute and appoint

 

Attorney to transfer said Security on the books of the within-named Company
with full power of substitution in the premises

	 	 	 
	Dated:
	 	 
	 

	 	 

	 	 	 	 	 
	Signature
	 	 	 	 
	 

	 	 	 	 
	NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.

	 	 	 	 	 
	Signature Guaranteed:
	 	 	 	 
	 

	 	 	 	 
	NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution”
that is a member or participant in a “signature guarantee program” (e.g., the
Securities Transfer Agents Medallion Program, the Stock Exchange Medallion
Program and the New York Stock Exchange Medallion Program).

11

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