Document:

exv10w5

 

Exhibit 10.5

LICENSE AGREEMENT

     Effective as of May 6, 1998 (the “Effective Date”), TUFTS UNIVERSITY, a body having
corporate powers under the laws of the State of Massachusetts (“TUFTS”), and ILLUMINA, Inc., a
California corporation having a principal place of business at 2187 Newcastle Avenue, Suite 101,
Cardiff, California 92007, (“LICENSEE”) enter into this license agreement (“Agreement”) and thereby
agree as follows:

1 BACKGROUND

     1.1 TUFTS is the owner of the patents and patent applications listed in Exhibit 1 and any
Licensed Patents, as hereinafter defined, which may issue therefrom.

     1.2 TUFTS desires to have its technology developed and marketed in order that products
resulting therefrom may be available for public use and benefit.

     1.3 LICENSEE desires a worldwide, exclusive license, including the right to sublicense, to
develop, market and sell products under the Licensed Patents and Know How (collectively, “Exclusive
Technology”) in all fields.

2 DEFINITIONS

     2.1 “Affiliate” means any corporation or other entity that is directly or indirectly
controlling, controlled by or under common control with LICENSEE. For the purpose of this
definition, “control” shall mean the direct or indirect beneficial ownership of at least fifty
percent (50%) in the income or stock of such corporation or business.

     2.2 “Exclusive” means that, subject to the provision in Section 3.3, TUFTS shall not grant
further licenses to the Licensed Patents.

     2.3 “Know-How” means trade secrets, know-how, data and other information (whether or not
patentable or qualifying as a trade secret) relating to the field of use relating to Licensed
Patents discovered or developed at Tufts, or revealed to LICENSEE pursuant to the research
agreement referred to in Section 3 of the Master Agreement of even date herewith (“Research
Agreement”) between Tufts and LICENSEE. Know-How shall not include Licensed Patents.

     2.4 “Licensed Product” means any product, the manufacture or sale of which is within a Valid
Claim within the Licensed Patents in the country of manufacture or sale.

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     2.5 “Licensed Patents” means (i) the U.S. and foreign patents and patent applications listed
on Exhibit 1 hereto, (ii) all U.S. or foreign patent applications filed after the Effective Date
owned by TUFTS or which TUFTS has the right to license which claim one or more inventions which
would be dominated by any patent issuing on a patent application within the Licensed Patents
pending as of the Effective Date (or a division, or continuation in whole or part of such a pending
application), (iii) all divisions, and continuations in whole or part of any of the preceding, (iv)
all foreign patent applications corresponding to or claiming priority from any of the preceding,
and (v) all U.S. and foreign patents issuing on any of the preceding, including patents of
addition, reexaminations, and reissues.

     2.6 “Licensed Territory” means worldwide.

     2.7 “LICENSEE” shall mean Illumina, Inc. and its Affiliates.

     2.8 “Net Sales” means the gross revenue actually received by LICENSEE from sales of Licensed
Products, less the following items, but only insofar as they are included in such gross revenue and
are separately stated on the invoice:

	 	(a)	 	Import, export, value-added, excise and sales taxes, and custom
duties, all to the extent separately identified on the invoice;
	 
	 	(b)	 	Cost of insurance, packing, and transportation from the place of
manufacture to the customer’s premises;
	 
	 	(c)	 	normal and customary rebates, and cash and trade discounts,
actually taken; and
	 
	 	(d)	 	Credit for returns, allowances, or trades actually allowed.

     2.9 “Valid Claim” means a claim of (i) an issued, unexpired patent which has not been held
unenforceable or invalid by a court or other governmental entity of competent jurisdiction, and
which has not been disclaimed, or withdrawn or found invalid or unenforceable in a reissue
application or re-examination proceeding; or (ii) a patent application, provided that not more than
five (5) years have elapsed from the date the claim takes priority for filing purposes.

3 GRANT

     3.1 Subject to Public Law 96-517 and Public Law 98-620, TUFTS hereby grants, to the extent
that it lawfully may, to LICENSEE and LICENSEE hereby accepts an exclusive license under the
Exclusive Technology to make, have made, import, have imported, use, lease, sell and offer for
sale, have sold and otherwise commercialize and exploit Licensed Products, and to practice any
method, process, or procedure within the Exclusive Technology, in the Licensed Territory.

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     3.2 Said license is Exclusive, including the right to sublicense pursuant to Section 12, in
the Licensed Territory for a term commencing as of the Effective Date, and ending upon expiration
of the last to expire of Licensed Patents.

     3.3 LICENSEE agrees that TUFTS shall have the right to practice the Exclusive Technology both
on its own and/or in collaboration with third party academic or not-for-profit research
institutions, solely for non-commercial purposes, and not for sale, license, or other distribution.

4 DILIGENCE

     4.1 LICENSEE will use reasonable best efforts to diligently and continuously commercialize the
Exclusive Technology. To support the commercialization of the Exclusive Technology, LICENSEE will
raise $500,000 in equity financing from third parties during the first year after the Effective
Date and use its best efforts to raise $2,000,000 in total financing (including but not limited to
equity or debt financing, government grant funding, sponsored research and development funding,
etc.) (“First Financing”) during the second year after the Effective Date. If LICENSEE fails to
meet any one of the foregoing milestones within the time specified, TUFTS shall have the right to
terminate the license granted hereunder, provided that such action by TUFTS is consistent with a
determination of the arbitrators pursuant to Section 15 hereof that LICENSEE has failed to exercise
due diligence in the commercialization of the Exclusive Technology pursuant to its obligations
under this Section 4.1.

     4.2 LICENSEE shall further use its best efforts to bring one or more Licensed Products to
market through a thorough, vigorous and diligent exploitation of Licensed Patents and to continue
thereafter active, diligent marketing of more Licensed Products throughout the life of this
Agreement.

     4.3 In addition LICENSEE shall adhere to the following milestones:

	 	(a)	 	LICENSEE shall deliver to TUFTS on or before the first
anniversary of this Agreement an operating plan showing the amount of money,
number and kind of personnel, and time budgeted and planned for each phase of
development of the Licensed Products and shall provide similar reports to TUFTS
on or before each subsequent anniversary. TUFTS agrees to keep this operating
plan confidential.
	 
	 	(b)	 	The following expenditures shall be made by the LICENSEE, its
Affiliates or its sublicensees on a calendar-year basis in order to develop and
commercialize Licensed Products:

1999 – an expenditure of $1,000,000

2000 – an expenditure of $1,500,000

2001 – an expenditure of $2,000,000

2002 – an expenditure of $2,500,000

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	 	(c)	 	Of the expenditures listed in Section 4.3(b), the following
minimum expenditures shall be made by LICENSEE, its Affiliates or its
sublicensees on a calendar-year basis in order to develop and commercialize a
product dominated by US Patent Number 5,512,490:

1999 – an expenditure of $250,000

2000 – an expenditure of $375,000

2001 – an expenditure of $500,000

2002 – an expenditure of $625,000

	 	(d)	 	LICENSEE shall permit an in-plant inspection by TUFTS on or
before July 1, 1999 and thereafter permit in-plant inspections by TUFTS at
regular intervals with at least six (6) months between inspections.
	 
	 	(e)	 	LICENSEE shall provide TUFTS with an annual report of research
and development expenditures required under this Section 4.3.

     4.4 If LICENSEE fails to meet any of the milestones in this Section 4, and the default has not
been remedied within ninety (90) days after the date of notice in writing of such default by TUFTS,
TUFTS shall have the right to change the license granted hereunder to a non-exclusive license.

5 PAYMENTS

     5.1 LICENSEE shall pay to TUFTS royalties equal to three percent (3.0%) of the Net Sales
received by LICENSEE from the sale of Licensed Products. In the event that a Licensed Product
under this Agreement is sold in a combination product containing one or more other active
ingredients or components which are or could be separately available on a commercial basis, then
Net Sales on the combination product shall be calculated as follows:

By multiplying the net selling price of the combination product by the fraction
A/A+B, where A is the gross selling price, during the royalty-paying period being
considered, of the Licensed Product sold separately, and B is the gross selling
price, during the royalty period in question, of the other active ingredients or
components sold separately.

     5.2 In the event that LICENSEE is required to take a license from any third party in order to
commercialize any Licensed Product, and LICENSEE must make royalty payments to such third party
(“Third Party Royalty Payment”), the royalties payable to TUFTS pursuant to Section 5.1 above shall
be reduced by an amount equal to fifty percent (50%) of the Third Party Royalty Payment, provided,
however, that such reduction shall not reduce the royalty payment owed to Tufts

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in any single year to an amount which is less than fifty per cent (50%) of that which would
have been due to TUFTS in the absence of Third Party Royalty Payments.

     5.3 LICENSEE shall pay TUFTS a sublicensing fee (the “Sublicensing Fee”) equal to twenty five
percent (25%) of the net revenue received from sublicensing of Licensed Patents and Licensed
Products covered by one or more valid claims of the Licensed Patents in the country in which such
Product is sold. The Sublicensing Fee shall be based upon the amount actually paid to LICENSEE by
a sublicensee, including fees, royalties and milestone payments, provided that the Sublicensing Fee
shall not include research and development support payments, payments in compensation for the grant
of rights to any other intellectual property of LICENSEE, or equity or debt financing received by
LICENSEE from such sublicensee.

     5.4 LICENSEE hereby grants to TUFTS the right to purchase 500,000 shares of LICENSEE’S common
stock which represents 10.0% of the founding capitalization (see Exhibit 2), at fair market value
as determined by LICENSEE’s Board of Directors as of the date of purchase (such fair market value
is currently $0.01 per share) pursuant to a separate stock purchase agreement (“Stock Agreement”).

     5.5 The royalty on Net Sales made in currencies other than U.S. Dollars shall be calculated
using the appropriate foreign exchange rate for such currency quoted by the Bank of America (San
Francisco) foreign exchange desk, on the close of business on the last banking day of each calendar
quarter. Royalties and payments to TUFTS shall be made in U.S. Dollars.

     5.6 Within thirty (30) days after receipt of a statement from TUFTS, LICENSEE shall reimburse
TUFTS for all costs incurred by TUFTS after the Effective Date in connection with the preparation,
filing and prosecution of all patent applications and maintenance of Licensed Patents.

     5.7 In the event that in any country all of the valid claims within the Licensed Patents which
cover a particular Licensed Product are held invalid or unenforceable, then LICENSEE’s obligation
to pay royalties on Net Sales with respect to such Licensed Product shall terminate in such
country. LICENSEE’s obligation to pay royalties on Net Sales shall terminate on a
country-by-country basis upon the expiration of the last to expire of any issued Licensed Patent in
each country.

6 ROYALTY REPORTS, PAYMENTS AND ACCOUNTING

     6.1 Beginning with the first sale of a Licensed Product, LICENSEE shall make written reports
(even if there are no further sales) of royalty payments due, if any, to TUFTS within thirty (30)
days after the end of each calendar quarter. This report shall state the number, description, and
aggregate Net Sales of Licensed Products during such completed calendar quarter by LICENSEE, its
Affiliates and Sublicensees, and resulting calculations of earned royalty payments due TUFTS
pursuant to Section 5 for such completed calendar quarter. Each such statement shall be certified
by an officer of the LICENSEE as being true, correct and complete. Concurrent with the submission
of

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each such report, LICENSEE shall pay TUFTS any royalties due for the calendar quarter covered
by such report.

     6.2 LICENSEE agrees to keep and maintain records for a period of three (3) years showing the
manufacture, sale, use and other disposition of products sold or otherwise disposed of under the
license herein granted. Such records will include sufficient detail to enable the royalties
payable hereunder by LICENSEE to be determined. LICENSEE further agrees to permit its books and
records to be examined by an independent certified public accountant selected by TUFTS and
acceptable to LICENSEE once per calendar year during the term of this Agreement, for the sole
purpose of verifying the reports and royalty payments made by LICENSEE. Such examination shall be
made at LICENSEE’S place of business during ordinary business hours with at least thirty (30) days
prior written notice. The accountant shall report to TUFTS only whether there has been a royalty
underpayment and, if so, the amount thereof. Such examination is to be at the expense of TUFTS
except in the event that the results of the audit reveal an under reporting of royalties due TUFTS
of five percent (5%) or more, then the audit costs shall be paid by LICENSEE within thirty (30)
days of notice by TUFTS to LICENSEE.

7 REPRESENTATIONS AND WARRANTIES

     7.1 TUFTS Disclaimer. TUFTS MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY
KIND, EITHER EXPRESS OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR PURPOSE), AND ASSUMES NO RESPONSIBILITIES WHATSOEVER, WITH RESPECT TO THE LICENSED
PATENTS OR KNOW-HOW OR THE USE THEREOF, OR THE MANUFACTURE, POSSESSION, USE, MARKETING, SALE, OR
OTHER DISPOSITION BY TUFTS, LICENSEE, OR ANYONE ELSE, OF LICENSED PRODUCT(S) OR ANY OTHER PRODUCTS
OF SERVICES (INCLUDING, WITHOUT LIMITATION, PRODUCTS MADE BY TUFTS, AND TUFTS SERVICES, THAT ARE OR
WERE FURNISHED TO LICENSEE AT ANY TIME BEFORE, ON, OR AFTER THE DATE HEREOF), EXCEPT ONLY AS
EXPRESSLY STATED HEREIN. Without limitation of the foregoing generality, nothing contained herein
or in any disclosure of the Licensed Patents or Know-How made by or on behalf of TUFTS shall be
construed as extending any representation or warranty with respect to the Licensed Patents or
Know-How or Licensed Products or the results to be obtained by the use of the Licensed Patents or
Know-How or any Licensed Products, or that anything made, used, or sold by use of the Licensed
Patents or Know-How or any part thereof, alone or in combination, will be free from infringement of
patents of third parties. TUFTS SHALL NOT BE LIABLE TO LICENSEE, ITS AFFILIATES, ITS
SUBLICENSEES, OR ANY OTHER PARTY, REGARDLESS OF THE FORM OR THEORY OF ACTION (WHETHER CONTRACT,
TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE), FOR ANY SPECIAL, INCIDENTAL,
CONSEQUENTIAL, PUNITIVE, OR OTHER EXTRAORDINARY DAMAGES ARISING OUT OF OR RELATED TO THIS
AGREEMENT, LICENSED PATENTS, THE KNOW-HOW, THE LICENSED PRODUCTS, OR ANY PRODUCTS OR SERVICES
FURNISHED OR NOT FURNISHED BY TUFTS, EVEN IF TUFTS HAS BEEN ADVISED OF THE POSSIBILITY THEREOF.

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     LICENSEE agrees that all warranties, if any, in connection with the sale or other disposition
of any Licensed Products (or any products made by TUFTS and furnished at any time to LICENSEE) by
LICENSEE, its Affiliates, or its sublicensees will be made by them and will not directly or
impliedly obligate TUFTS.

     7.2 TUFTS Representations. Notwithstanding the first sentence of Section 7.1, TUFTS:

               (a) Warrants to LICENSEE that TUFTS has good title to the Exclusive Technology and any
tangible personal property furnished hereunder by TUFTS to LICENSEE, including any quantities of
materials similar to the products to be made by LICENSEE as Licensed Products (but TUFTS makes no
infringement or other representations or warranties with respect thereto).

               (b) Represents that TUFTS is a corporation organized and existing under the laws of the
Commonwealth of Massachusetts and has the power and authority to enter into this Agreement and the
right to grant all the rights described in this Agreement, including the rights to the Licensed
Patents and Know-How described herein.

               (c) Represents that TUFTS has taken all necessary action to authorize its execution and
delivery of this Agreement by the representatives of TUFTS who carried out such execution and
delivery, and to authorize the performance by TUFTS of its obligations hereunder.

               (d) Represents that execution and delivery of this Agreement and its performance by TUFTS will
not result in any breach or violation of, or constitute a default under, any agreement, instrument,
judgment, or order to which TUFTS is a party or by which it is bound.

               (e) Represents that TUFTS is not aware of any other intellectual property right owned by TUFTS
for which a license is necessary to practice the rights to the Licensed Patents as set forth
herein.

     7.3 LICENSEE Representations. LICENSEE represents and warrants to TUFTS that:

               (a) LICENSEE is a corporation organized and existing under the laws of California and has the
power and authority to enter into this Agreement.

               (b) LICENSEE has taken all necessary action to authorize its execution and delivery of this
Agreement by the representatives of LICENSEE who carried out such execution and delivery, and to
authorize the performance by LICENSEE of its obligations hereunder.

               (c) Execution and delivery of this Agreement and its Agreement and its performance by LICENSEE
will not result in any breach or violation of, or constitute a default

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under, any agreement, instrument, judgment, or order to which LICENSEE is a party or by which it is
bound.

8 INDEMNITY

     8.1 Indemnity. LICENSEE agrees to indemnify and hold harmless TUFTS, its trustees,
officers and employees, from all costs, expenses (including reasonable attorneys’ fees), interest,
losses, obligations, liabilities, and damages paid or liability for which is incurred by any of
said parties (“Losses”), and which arise out of or are in connection with or are for the purpose of
avoiding any and all claims, demands, actions, causes of action, suits, appeals, and proceedings
(“Claims”), all whether groundless or not, or the settlement thereof, based on any actual or
alleged injuries, damages, or liability of any kind whatsoever (including, without limitation,
personal injury, death, property damage, breach of warranty, or breach of contract) arising,
directly or indirectly, out of any one or more of: any breach of LICENSEE of its representations,
warranties, or agreements hereunder; or out of any manufacture, marketing, possession, use, sale or
other disposition of Licensed Products or products furnished by TUFTS to LICENSEE in connection
herewith or in connection with the Research Agreement (whether same occurs during or after the
License or during or after the License Period) by LICENSEE, its Affiliates, its sublicensees, or
anyone claiming by, through, or under any of them; or any acquisition, possession, disclosure, or
use of the Exclusive Technology or any thereof, by LICENSEE, its Affiliates, its sublicensees, or
anyone claiming by, through, or under any of them; or the presence of LICENSEE’s or its Affiliates’
or its sublicensees’ officers, agents, employees, invitees, or property or any thereof on TUFTS’
premises, provided that the obligations of LICENSEE under this Section 8.1 shall not apply if the
Claims and any Losses resulted in whole or in part from the intentional misconduct or gross
negligence of TUFTS or any other party indemnified under this Section.

     8.2 Defense; Settlement. LICENSEE shall defend and control negotiation of settlement
of any Claim, as defined in Section 8.1. TUFTS agrees to cooperate fully in the defense of any
Claim and may participate in the defense with counsel of TUFTS’ choosing, such separate counsel to
be at TUFTS’ expense unless a conflict of interest exists between LICENSEE and TUFTS with respect
to the defense in which case LICENSEE shall pay the reasonable fees and expenses of TUFTS’ separate
counsel. Any settlement by which TUFTS would incur any obligation or liability, whether for the
payment of money, the taking of any action, the refraining from any action, or otherwise, shall
require the advance written consent of TUFTS, which may be withheld in the sole discretion of TUFTS
without relieving LICENSEE of any of its indemnification or other obligations hereunder.

     8.3 Insurance. Not later than thirty (30) days before the time when LICENSEE, any
subsidiary, or any sublicensee of LICENSEE shall use in humans or sell any Licensed Products or any
products furnished to LICENSEE by TUFTS at any time (before, on or after the date hereof) in
connection herewith or in connection with the Research Agreement, and at all times thereafter until
the expiration of all applicable statutes of limitation pertaining to any such use, sale or other
disposition of any Licensed Products or the aforesaid products furnished by TUFTS (whether same

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occurs or exists before or after the Effective Date), LICENSEE will at LICENSEE’s expense,
obtain and maintain in full force and effect, comprehensive general liability insurance, including
product liability insurance, protecting TUFTS against all claims, suits, obligations, liabilities
and damages, based upon or arising out of actual or alleged bodily injury, personal injury, death,
or any other damage to or loss of persons or property, caused by any such use, sale, or other
disposition. Such insurance policy or policies shall be issued by companies rated by A. M. Best as
A VIII or better (or other companies acceptable to TUFTS), shall name TUFTS as an additional named
insured, shall have limits of at least one million dollars ($1,000,000) per occurrence with an
aggregate of three million dollars ($3,000,000), shall be non-cancelable except upon thirty (30)
days prior written notice to TUFTS, and shall provide that as to any loss covered thereby and also
by any policies obtained by TUFTS itself, LICENSEE’s policies shall provide primary coverage for
TUFTS and TUFTS’ policies shall be considered excess coverage for TUFTS.

     8.4 Certificates; Policies. LICENSEE will forthwith after the obtaining of such
insurance required by Section 8.3, obtain and deliver to TUFTS certificates of and copies of, and
at all times thereafter deliver without further demand replacement certificates and copies of, all
such insurance policies that are in force and effect, as reasonably requested by TUFTS.

9 MARKING

     Prior to the issuance of patents under Licensed Patents, LICENSEE agrees to mark Licensed
Product(s) (or their containers or labels) made, sold, or otherwise disposed of by it under the
license granted in this Agreement with the words “Patent Pending,” and following the issuance of
one or more patents, with the numbers of any applicable Licensed Patents.

10 USE OF NAMES

     10.1 Use of Names. LICENSEE, its Affiliates and sublicensees agrees not to use the
name of TUFTS or any TUFTS participant in the Research, as defined in the Research Agreement, in
any form of publicity or disclosure without TUFTS’ prior written consent, which may be withheld or
withdrawn in TUFTS’ discretion at any time, provided however, that no such consent will be required
with regard to: (i) any proper reference by LICENSEE to published technical publications by such
participants; (ii) disclosures to potential investors and corporate collaborators; and (iii) TUFTS
will make no objection to LICENSEE’s such other disclosures as are required as a matter of law
(including disclosures made under applicable securities regulation) and such general disclosures of
this Agreement as may be desired by LICENSEE for purposes of grant solicitations from governmental
authorities.

11 PATENT PROSECUTION AND INFRINGEMENT

     11.1 TUFTS shall have the primary responsibility for the prosecution, filing and maintenance
of all Licensed Patents, including the conduct of all interference, opposition, nullity and
revocation proceedings, using counsel of its choice; provided, however, that LICENSEE shall have

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reasonable opportunity to advise and consult with TUFTS on such matters and may recommend
TUFTS to take such action as LICENSEE reasonably believes necessary to protect the Licensed
Patents. Counsel shall concurrently provide TUFTS and LICENSEE with copies of all material
correspondence related to the prosecution of the patent applications within the Licensed Patents.
Should TUFTS elect to abandon any patent or patent application in any country, it shall give timely
notice to LICENSEE, who may continue prosecution or maintenance, at its sole expense and TUFTS
shall have no further rights with respect to such patent application or patent in such country. In
the event that a conflict arises with respect to patent counsel selected by TUFTS, LICENSEE may,
with just cause and after consulting with TUFTS, select new patent counsel reasonably acceptable to
TUFTS.

     11.2 Payment of all reasonable fees and costs relating to the filing, prosecution and
maintenance of Licensed Patents which are incurred by TUFTS after the Effective Date (including
interference and/or opposition, nullity and revocation proceedings) shall be the responsibility of
LICENSEE. TUFTS shall periodically send LICENSEE invoices for any such patent expenses incurred by
TUFTS and LICENSEE shall pay such invoices within thirty (30) days of receipt thereof.

     11.3 Each party shall inform the other promptly in writing of any alleged infringement of the
Licensed Patents by a third party, including all detail then available. TUFTS shall have the
right, but shall not be obligated, to prosecute at its own expense any such infringements, and
LICENSEE agrees that TUFTS may join LICENSEE as a plaintiff at the expense of TUFTS. In any
infringement action commenced or defended solely by TUFTS, all expenses and all recovery for
infringement shall be those of TUFTS.

     11.4 If TUFTS has not taken legal action or been successful in obtaining cessation of the
infringement, within one hundred eighty (180) days of written notification from LICENSEE of such
infringement, or if TUFTS elects not to continue prosecuting any legal action against an infringer,
LICENSEE shall have the right (while the LICENSEE is the exclusive licensee), but shall not be
obligated, to prosecute at its own expense any such infringement. LICENSEE may join TUFTS as a
plaintiff in any such infringement suit at LICENSEE’s expense. No settlement, consent judgment or
other voluntary final disposition of the suit may be entered into without TUFTS’ consent, which
shall not be unreasonably withheld or delayed. In any such action by LICENSEE, after LICENSEE is
first reimbursed for LICENSEE’s costs and expenses (including attorney’s and expert fees) and then
TUFTS is reimbursed for any credited royalties pursuant to Section 11.8, TUFTS shall be entitled to
receive an amount equal to the applicable royalties on any recovery of profits and damages that is
in excess of LICENSEE’s costs and expenses and TUFTS’ royalty reimbursement. LICENSEE shall
indemnify TUFTS against any order for costs or other payments that may be made against TUFTS in
such proceedings.

     11.5 If any declaratory judgment action alleging invalidity or non-infringement of any of the
Licensed Patents shall be brought against LICENSEE, TUFTS shall have the right at its election

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made within sixty (60) days after commencement of that action, to intervene and take over the sole
defense of the action at its expense.

     11.6 In any infringement suit that either party brings to enforce the Licensed Patents, the
other party shall at the request and expense of the party bringing the suit, cooperate in al
reasonable respects, including, to the extent possible, obtaining the testimony of its employees
and making available physical evidence in the possession of that party.

     11.7 LICENSEE, during the exclusive period of this Agreement, shall have the exclusive right
in accordance with the provisions of Section 12, to sublicense any alleged infringer in the
Licensed Territory for future use of the Licensed Patents.

     11.8 If LICENSEE pay any amounts in fees, expenses or costs to maintain, prosecute, bring or
defend any proceeding relating to any infringement by a third party of any Licensed Patents, any
declaratory action alleging invalidity or non-infringement of any Licensed Patents, or any
interference, opposition, nullity or revocation proceeding relating to any Licensed Patents
pursuant to this Section 11 (the “Section 11 Costs”), TUFTS agrees that 50% of the amount of such
Section 11 Costs may be credited as they are incurred by LICENSEE against royalties due to TUFTS
under Section 5 of this Agreement.

12 SUBLICENSES

     12.1 LICENSEE may grant sublicenses under the Exclusive Technology to make, have made, import,
have imported, use, lease, sell and offer for sale, have sold and otherwise commercialize and
exploit Licensed Products, and to practice any method, process or procedure within the Exclusive
Technology in the Licensed Territory. The terms and conditions of each sublicense shall be
consistent with the terms and conditions of this Agreement and shall contain, among other things
(by way of example but not limitation), provisions substantially similar to and consistent with:
the “Net Sales” definition; Section 6; Section 7.1 (so that no representations or warranties
inconsistent with that Section shall be extended to or by any sublicensee); Section 10; and Section
18.

     12.2 Any sublicense granted by LICENSEE under this Agreement shall remain in effect in the
event of any termination of this Agreement and shall provide for the assignment of such sublicense
to TUFTS or its designee in the event that this Agreement is terminated; provided, that the
financial obligations of each sublicensee to TUFTS shall be limited to the amounts such sublicensee
would be obligated to pay to LICENSEE had this Agreement not been terminated.

     12.3 Each sublicense shall provide that the obligations to TUFTS of Sections 6, 7.1, 8.1,
10.1, 11.3, 11.4, 13.4, and 18 shall be binding on the sublicensee and enforceable by both TUFTS
and LICENSEE.

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     12.4 LICENSEE shall furnish to TUFTS a true and complete copy of each sublicense agreement and
each amendment thereto, promptly after the sublicense or amendment has been agreed upon. TUFTS
agrees that it will keep each agreement confidential.

     12.5 No sublicense shall relieve LICENSEE of any of its obligations hereunder, and LICENSEE
shall be responsible for the acts or omissions of its Affliliates and sublicensees and for
compliance by them with their obligations, and LICENSEE shall take all steps necessary to enforce
that compliance to the extent required to allow LICENSEE to fully comply with all of its
obligations under this Agreement.

13 TERM AND TERMINATION

     13.1 Unless sooner terminated in a manner provided herein, this Agreement shall continue in
force on a country-by-county and Licensed Product-by-Licensed Product basis until the expiration of
the last to expire of all Valid Claims in such country included in the Licensed Patents. Following
such an expiration, LICENSEE shall have a non-exclusive, royalty-free, irrevocable license in such
country, to the Know-How.

     13.2 LICENSEE shall have the right to terminate the Agreement at any time following ninety
(90) days written notice to TUFTS. LICENSEE may terminate this Agreement with respect to any
country or any Licensed Patent by giving TUFTS notice in writing at least sixty (60) days in
advance of the effective date of termination selected by LICENSEE.

     13.3 TUFTS may terminate this Agreement if LICENSEE:

	 	(a)	 	Is in default in payment of royalty;
	 
	 	(b)	 	Is in material breach of any provision hereof;

and LICENSEE fails to remedy any such default, or breach, or fails to act reasonably to remedy any
default, or breach, within thirty (30) days after receipt of written notice thereof by TUFTS.

     13.4 TUFTS may terminate this Agreement if LICENSEE fails to cure any default on the diligence
milestones in Section 4 after a twelve month period commencing upon LICENSEE’s receipt of written
notification from TUFTS of LICENSEE’s default of such milestones.

     13.5 Surviving any termination are:

	 	(a)	 	LICENSEE’s obligation to pay royalties accrued or accruable;
	 
	 	(b)	 	Any cause of action or claim of LICENSEE or TUFTS, accrued or to
accrue, because of any breach or default by the other party; and
	 
	 	(c)	 	The provisions of Articles 8, 10, 15, 17 and Sections 7.1, 12.2
and 13.4.

 -12- 

 

14 ASSIGNMENT

     Neither party may assign this Agreement or any part hereof without the express written consent
of the other, which consent shall not be unreasonably withheld; provided, however, LICENSEE may
assign this Agreement or any portion hereof to an Affiliate or to a successor of all or
substantially all its business relating to the Licensed Patents or Know-How without the written
consent of TUFTS and shall provide TUFTS notice of any such assignment. However, no assignment or
other transfer by LICENSEE shall relieve LICENSEE of any obligations hereunder and LICENSEE shall
continue to be primarily and jointly and severally liable (along with such assignee or other
transferee) for the performance of all obligations of LICENSEE and such assignee or other
transferee hereunder.

15 ARBITRATION

     15.1 Any controversy arising under or related to this Agreement, and any disputed claim by
either party against the other under this Agreement excluding any dispute relating to patent
validity or infringement arising under this Agreement, shall be settled by arbitration in
accordance with the Rules of Commercial Arbitration of the American Arbitration Association.

     15.2 Upon request by either party, arbitration will be initiated by a third party arbitrator
mutually agreed upon in writing by LICENSEE and TUFTS within thirty (30) days of such arbitration
request. Judgment upon the award rendered by the arbitrator shall be final and nonappealable and
may be entered in a court having jurisdiction thereof. The parties agree that any provision of
applicable law notwithstanding, they will not request and the arbitrators shall have no authority
to award punitive or exemplary damages against any party. The costs of the arbitration, including
administrative fees and fees of the arbitrators shall be shared equally by the parties. Each party
shall bear the cost of its own attorneys’ fees and expert fees.

     15.3 The parties shall be entitled to discovery in like manner as if the arbitration were a
civil suit in a Superior Court of the Commonwealth of Massachusetts; provided, however, the
arbitrator may limit the scope, time and/or issues involved in discovery.

     15.4 Any arbitration shall be held at a location mutually agreed upon in writing by LICENSEE
and TUFTS.

16 NOTICES

     All notices under this Agreement shall be deemed to have been fully given when done in writing
and deposited in the United States mail, registered or certified, or overnight deliver service
(e.g., DHL, Federal Express) and addressed as follows:

 -13- 

 

	 	 	 
	     To TUFTS:

	 	Tufts University
	 

	 	136 Harrison Avenue (75K-1520)
	 

	 	Boston, Massachusetts 02111
	 
	 	 
	 

	 	Attention: Associate Provost for Research
	 
	 	 
	     with a copy to:

	 	Massachusetts Biomedical Inititatives
	 

	 	20 Hampden Street
	 

	 	Roxbury, Massachusetts 02119
	 
	 	 
	 

	 	Attention: Director, Unified Office for Technology Transfer
	 
	 	 
	     To LICENSEE:

	 	Illumina, Inc.
	 

	 	2187 Newcastle Ave
	 

	 	Suite 101
	 

	 	Cardiff, California 92007
	 
	 	 
	 

	 	Attention: John R. Stuelpnagel

Either party may change its address upon written notice to the other party.

17 CONFIDENTIALITY

     TUFTS shall maintain this Agreement and the reports and any information provided by LICENSEE
to TUFTS in confidence and not disclose such information or reports to any third party, except as
required by law and disclosed after notice to LICENSEE and after requesting confidential treatment
and a protective order, if available. TUFTS may, however, disclose to third parties total annual
royalty payments and general statistical information regarding payments made hereunder in the
context of disclosing statistical information pertaining to the performance of the TUFTS Office of
Technology Licensing.

18 COMPLIANCE WITH LAWS

     18.1 Export Controls. The Export Control Regulations of the U.S. Department of
Commerce prohibit, except under special validated license, the exportation from the United States
of technical data relating to certain commodities (listed in the Regulations), unless the exporter
has received certain written assurance from the foreign importer. In order to facilitate the
exchange of technical information under this Agreement, LICENSEE therefore hereby agrees and gives
its assurance to TUFTS that LICENSEE will not, unless any required prior authorization is obtained
from the U.S. Office of Export Control, re-export directly or indirectly any technical data
received from TUFTS under this Agreement and will not export directly the Licensed Products or such
technical data to any country listed on either the Commodity Control List or Militarily-Critical
Technologies List. TUFTS makes no representation as to whether any such license is required or, if
one is required, as to whether it will be issued by the U.S. Department of Commerce.

 -14- 

 

     18.2 Other Laws. In addition to the foregoing export control requirements, LICENSEE
agrees that it, its Affiliates, and its sublicensees will comply with all applicable mandatory or
permissive patent marking laws, rules, and regulations and comply with all other laws, rules, and
regulations of all governmental authorities applicable to any of their activities contemplated by
this Agreement, and will comply with all necessary and desirable practices in connection and
compliance with safety recommendations of trade associations or governmental authorities.

19 MISCELLANEOUS

     19.1 Governing Law. This Agreement shall be governed by the laws of in the
Commonwealth of Massachusetts, without reference to principles of conflicts of laws.

     19.2 Waiver. None of the terms of this Agreement can be waived except by the written
consent of the party waiving compliance.

     19.3 Entire Agreement. This Agreement and any Exhibits attached hereto (each of which
is hereby made part hereof by this reference), and the Master Agreement entered into by the parties
on even date herewith constitute the entire agreement between the parties concerning the subject
matter hereof, and all prior negotiations, representations, warranties, agreements, and
understandings related thereto superseded hereby.

     19.4 Force Majeure. Neither party shall not be considered in breach of this Agreement
to the extent any failure to perform any term or provision is caused by any reason beyond such
party’s reasonable control, or by reason of any of the following circumstances: labor or employee
disturbances or disputes of any kind; accidents; laws, rules or regulations of any government
(including, without limitation, export and import regulations); failure of any government approval
required; disease; failure of utilities, mechanical breakdowns, material shortages or other similar
occurrences; civil disorders or commotions, acts of aggression, vandalism or other similar
occurrences; or fire, floods, earthquakes, or acts of God.

     19.5 Independent Contractors. The parties hereto shall be independent contractors
with respect to each other, and neither shall be deemed to be the agent, principal, employee,
servant, joint venturer, or partner of the other for any purpose.

     19.6 Severability. If any provision of this Agreement shall to any extent be found to
be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and any
such invalid or unenforceable provision shall be reformed so as to be valid and enforceable to the
fullest extent permitted by law.

     19.7 Headings. Headings of Articles, Sections, and subsections included herein for
convenience for reference only and shall not be used to construe this Agreement.

 -15- 

 

     19.8 Counterparts. This Agreement may be executed in two counterparts, each of which
shall be deemed an original and which together shall constitute one instrument.

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective
Date set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	TUFTS UNIVERSITY 

(“TUFTS”)	 	 	 	ILLUMINA, INC.

(“LICENSEE”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	     /s/ Philip G. Salem
 

	 	 	 	By:
	 	     /s/ John R. Stuelpnagel
 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Sr. Director of University Development
 

	 	 	 	Title:
	 	President
 

	 	 

 -16- 

 

Exhibit 1

Patents and Patent Applications

	 	 	 	 	 
	WALT, David

BARNARD, Steve

	 	Imaging Fiber Optic Array Sensors,
Apparatus and Methods for
Concurrently Detecting Multiple
Analytes of Interest in a Fluid
Sample
	 	Pat #5,244,636

Issued: 9/14/93
	 
	 	 	 	 
	WALT, David 

BARNARD, Steve

	 	Method of Making Imaging Fiber
Optic Sensors to Concurrently
Detect Multiple Analyte of
Interest in a Fluid Sample
	 	Pat #5,250,264

Issued: 10/5/93

Japanese

Pat #513204/94
	 
	 	 	 	 
	WALT, David 

BRONK, Karen

	 	Thin Film Fiber Optic Sensor Array
and Apparatus for Concurrently
Viewing Chemical Sensing of a
Sample
	 	Pat #5,298,741

Issued: 3/29/94
	 
	 	 	 	 
	WALT, David 

BARNARD, Steve

	 	Fiber-Optic Array Sensors,
Apparatus and Methods for
Concurrently Visualizing and
Chemically Detecting Multiple
Analytes of Interest in a Fluid
Sample
	 	Pat #5,320,814

Issued: 6/14/94
	 
	 	 	 	 
	 

	 	 	 	European

Pat#94902248.7

11/15/93

Canadian

Pat #2128413
	 
	 	 	 	 
	WALT, David 

Kauer, John

	 	Selective Sensor Systems Using
Non-Selective Fiber-Optic Sensors
using Spectral Recognition
Patterns
	 	Pat #5,512,490

Issued: 4/30/96
	 
	 	 	 	 
	WALT, David 

PANTANO, Paul

	 	Superresolution Imaging Fiber for
Subwavelength Light Energy
Generation and Near-Field Optical
Microscopy
	 	Pat #5,633,972

Issued: 5/27/97
	 
	 	 	 	 
	WALT, David 

BARNARD, Steve

	 	Fiber Optic Sensor, Apparatus and
Methods for Detecting an Organic
Analyte in a Fluid or Vapor Sample
(OSCI)
	 	Pat #5,244,813

Issued: 9/14/93
	 
	 	 	 	 
	 

	 	 	 	Canadian Serial No.

#2,128,413
	 
	 	 	 	 
	 

	 	Pending U.S. Patent Applications	 	 
	 
	 	 	 	 
	WALT, David 

HEALEY, Brian

	 	Photodeposition Methods for
Fabricating a Three-Dimensional,
Patterned Polymer Microstructure
	 	USSN #08/519,062

Filed: 8/24/95
	 
	 	 	 	 
	WALT, David

	 	Far-Field Viewing Optical
Apparatus for Making Optical
Determinations and Analytical
Measurements
	 	USSN #08/572,005

Filed: 12/14/95
	 
	 	 	 	 
	WALT, David 

MICHAEL, Keri

	 	Fiber Optic Sensor with Encoded
Microspheres (Analyte Detection
System)
	 	USSN #08/818,199

Filed: 3/14/97
	 
	 	 	 	 
	WALT, David 

DICKINSON, Todd

	 	Self-Encoding Microspheres
	 	USSN #08/944,850

Filed: 10/6/97
	 
	 	 	 	 
	WALT, David 

HEALEY, Brian 

FERGUSON, Jane

	 	Fiber Optic Biosensor for
Selectively Detecting
Oligonucleotide Species in a Mixed
Fluid Sample
	 	Application Being

Prepared
	 
	 	 	 	 
	 

	 	U.S. Patent Application to be Filed	 	 
	 
	 	 	 	 
	WALT, David 

TAYLOR, Laura

	 	Fiber Optic Biosensor Array
Comprising of Cell Populations
Confined to Microcavities
	 	Application Being

Prepared

 -17- 

 

Exhibit 2

Founding Capitalizaton

Person/Organization Shares% of Total

	 	 	 	 	 	 	 	 	 
	MBRI/Tufts
	 	 	0,500,000	 	 	 	10.0	%
	Founders
	 	 	1,275,000	 	 	 	25.5	%
	CW Group
	 	 	0,375,000	 	 	 	07.5	%
	Reserve
	 	 	2,825,000	 	 	 	57.0	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	 	5,000,000	 	 	 	100	%

 -18-exv10w41

 

Exhibit 10.41

EXECUTION VERSION

AMENDED AND RESTATED LEASE

(Parcels 1&2: 9885 Towne Centre Drive, San Diego, California)

by and between

BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company

and

ILLUMINA, INC.,

a Delaware corporation

 

 

AMENDED AND RESTATED LEASE

(Parcels 1&2: 9885 Towne Centre Drive, San Diego, California)

     THIS LEASE (this “Lease”) is entered into as of this 26th day of January,
2007 (the “Execution Date”), by and between BMR-9885 Towne Centre Drive LLC, a Delaware
limited liability company (“Landlord”), and Illumina, Inc., a Delaware corporation
(“Tenant”).

RECITALS

     A. WHEREAS, Landlord and Tenant have entered in that certain Single Tenant Lease dated August
18, 2004 (the “Original Lease”), pursuant to which Tenant leased three (3) parcels of real
property located in the City of San Diego, County of San Diego, State of California, legally
described as: (1) Parcel 1 of Parcel Map 18286 filed with the San Diego County Recorder on June 21,
1999 (together with any easements and appurtenances thereto, the “Parcel 1 Land”); (2)
Parcel 2 of Parcel Map 18286 filed with the San Diego County Recorder on June 21, 1999 (together
with any easements and appurtenances thereto, the “Parcel 2 Land” and, together with the
Parcel 1 Land, the “Property”); and (3) Parcel 3 of Parcel Map 18286 filed with the San
Diego County Recorder on June 21, 1999 (together with any easements and appurtenances thereto, the
“Parcel 3 Land” and, collectively with the Parcel 1 Land and the Parcel 2 Land, the
“Parcels”). The Property is improved by two (2) buildings consisting of approximately
104,870 square feet of space (the “Buildings”), and the Parcel 3 Land is improved by one
(1) building consisting of approximately 11,000 square feet of space (the “Diversified
Building”);

     B. WHEREAS, Landlord intends to construct an additional building totaling approximately 83,866
rentable square feet on the Parcel 3 Land (the “New Parcel 3 Building”);

     C. WHEREAS, pursuant to the terms and conditions of the Original Lease, Landlord granted
Tenant certain rights in connection with the New Parcel 3 Building, including: (1) a right of first
refusal to lease space in the New Parcel 3 Building as set forth in Section 25 of the
Original Lease, and (2) a development fee in connection with the New Parcel 3 Building as set forth
in Section 25 of the Original Lease (the “Tenant’s Development Rights”);

     D. WHEREAS, Concurrently herewith, Landlord and Tenant are entering into a new lease (the
“Parcel 3 Lease”) to, among other things, lease the Parcel 3 Land, including the
Diversified Building and the New Parcel 3 Building; and

     E. WHEREAS, Landlord and Tenant now wish to amend and restate the Original Lease in its
entirety to, among other things, (1) extend the term of the Original Lease to be co-terminous with
the term of the Parcel 3 Lease, (2) exclude Parcel 3 Land (including the Diversified Building) from
the “Premises” covered by this Lease, and (3) terminate the Tenant’s Development Rights.

AGREEMENT

     NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, hereby amend and restate the Original Lease,
effective from and after the Execution Date, to exclude the Parcel 3 Land (including the
Diversified Building) from the “Premises” covered by this Lease, to terminate the Tenant’s
Development Rights, and to read in its entirety as follows:

1. Lease of Premises. Effective on the Execution Date, Landlord hereby leases to
Tenant, and Tenant hereby leases from Landlord, the Premises (as defined below). The Property and
all landscaping, parking facilities and other improvements and appurtenances related thereto,
including, without limitation, the Buildings, are hereinafter collectively referred to as the
“Premises.” For purposes of clarity, the Original Lease controls all of the parties’
rights and obligations from the Commencement Date through the Execution Date and this Lease
controls all of the parties’ rights and obligations from the Execution Date through the Expiration
Date.

2. Basic Lease Provisions. For convenience of the parties, certain basic provisions of this Lease are set forth
herein. The provisions set forth herein are subject to the remaining terms and conditions of this
Lease and are to be interpreted in light of such remaining terms and conditions.

 

 

     2.1. Binding. This Lease shall take effect upon the Execution Date and, except as
specifically otherwise provided within this Lease, each of the provisions hereof shall be binding
upon and inure to the benefit of Landlord and Tenant from the Execution Date.

     2.2. Rentable Areas of the Premises. The term “Rentable Area” of the Premises
shall be deemed to be 104,870 square feet, even if it is determined upon final measurement of the
Buildings, that the Rentable Area of such Buildings are smaller or larger than the amount set forth
in this Section 2.2.

     2.3. Basic Annual Rent. Initial monthly and annual installments of Basic Annual Rent
for the Premises (“Basic Annual Rent”) as of the Execution Date, subject to adjustment in
accordance with Section 6, shall be as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	Per Rentable S.F.	 	 	 	 
	Rentable S.F. of Premises	 	of Premises	 	Total Annual	 	Total Monthly
	104,870
	 	$	3.09	 	 	$	3,893,226.97	 	 	$	324,435.58	 

     2.4. Commencement Date: The Commencement Date shall be August 18, 2004.

     2.5. Expiration Date: Fifteen (15) years from the Phase 1 Commencement Date (as
defined in the Parcel 3 Lease); provided, however, Tenant shall have the option to extend this
Lease as provided in Article 38.

     2.6. Security Deposit: An amount equal to Eight Hundred Sixty-Five Thousand One
Hundred Seventy-Seven and 50/100 Dollars ($865,177.50).

     2.7. Permitted Use: (a) Laboratory research, administration, pharmaceutical,
diagnostic, office, manufacturing and related health care and research uses in conformity with
Applicable Laws (as defined below); and (b) such other legally permitted uses as are approved by
Landlord, which approval shall not be unreasonably withheld or delayed.

     2.8. Address for Rent Payment:

BMR-9885 Towne Centre Drive LLC

Unit E

P.O. Box 51918

Los Angeles, CA 90051-6218

     2.9. Address for Notices to Landlord:

BMR-9885 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

     2.10. Address for Notices to Tenant:

Illumina, Inc.

9885 Towne Centre Drive

San Diego, CA 92121

Attn: Christian Henry

     2.11. The following Exhibits are attached hereto and incorporated herein by reference:

Exhibit A            Tenant’s Personal Property

Exhibit B            Rules and Regulations

Exhibit C            Form of Estoppel Certificate

Exhibit D            Form of Letter of Credit

Exhibit E            Form of Subordination, Non-Disturbance and Attornment Agreement

Exhibit F            Reciprocal Easement Agreement

Exhibit G            Temporary Construction Easement

2

 

3. Term. The actual term of this Lease (the “Term”) shall be the period from
the Execution Date through the Expiration Date, subject to earlier termination of this Lease as
provided herein.

4. Possession and Commencement Date.

     4.1. Possession. Tenant hereby acknowledges that immediately prior to the Execution
Date, Tenant occupied the Premises and that Tenant is in possession of the Premises, and is
familiar with the condition thereof and accepts the Premises in its “as is” condition with all
faults, and Landlord makes no representation or warranty of any kind with respect the Premises, and
Landlord will have no obligation to improve, alter or repair the Premises, except as specifically
set forth herein. Tenant acknowledges that Tenant was the prior owner of the Premises and as such
is fully aware of the current conditions of the Premises.

5. Rent.

     5.1. Tenant shall pay to Landlord as Basic Annual Rent for the Premises, the sums set forth in
Section 2.3, subject to annual rent adjustments in accordance the provisions of Article
6 hereof. Basic Annual Rent shall be paid in equal monthly installments on or before the first
day of the applicable month.

     5.2. In addition to Basic Annual Rent, Tenant shall pay to Landlord as additional rent
(“Additional Rent”) at times hereinafter specified in this Lease (a) amounts related to
Insurance Costs, Utility Costs and Taxes (each as defined below) and (b) any other amounts that
Tenant agrees to pay under the provisions of this Lease that are owed to Landlord, including,
without limitation, any and all other sums that may become due by reason of any default of Tenant
or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of this
Lease to be performed by Tenant, after notice and the lapse of any applicable cure periods.

     5.3. Basic Annual Rent and Additional Rent shall together be denominated “Rent.” Rent
shall be paid to Landlord, without, except as otherwise provided herein, abatement, deduction or
offset, in lawful money of the United States of America at the office of Landlord as set forth in
Section 2.9 or to such other person or at such other place as Landlord may from time
designate in writing.

6. Rent Adjustments. The Basic Annual Rent shall be adjusted as follows:

     6.1. The Basic Annual Rent per rentable square foot of the Premises shall be increased in
accordance with Schedule 1 attached hereto.

     6.2. On the first day of each Extended Term (as defined in Section 38), the Basic
Annual Rent shall be adjusted in accordance with Section 38.1. During each Extended Term,
the Basic Annual Rent per rentable square foot of the Premises shall be increased, on every other
anniversary (i.e., the second anniversary, the fourth anniversary, the sixth anniversary, etc.) of
the first (1st) day of each such Extended Term, by five percent (5%) of the Basic Annual
Rent immediately preceding such increase.

The monthly installment of Basic Annual Rent that is due for the month in which each such
adjustment occurs (the installment due immediately before such month) shall be the first
installment that will be increased to reflect such increase in Basic Annual Rent.

7. Taxes.

     7.1. Commencing with the Execution Date and continuing for each calendar year or, at
Landlord’s option, tax year (each such “tax year” being a period of twelve (12) consecutive
calendar months for which the applicable taxing authority levies or assesses Taxes), for the
balance of the Term, Tenant shall pay to Landlord the amount of all Taxes levied and assessed for
any such year upon the Premises. “Taxes” shall mean all government impositions including,
without limitation, property tax costs consisting of real and personal property taxes and
assessments (including amounts due under any improvement bond upon the Premises or any portion
thereof, including the Parcel or parcels of real property upon which the Buildings are located or
assessments levied in lieu thereof) imposed by any federal, state, regional, local or municipal
governmental authority, agency or subdivision (each, a “Governmental Authority”) on the
Premises or improvements thereon, any tax on or measured by gross rentals received from the rental
of space in the Buildings, or tax based on the square footage of the Premises or the

3

 

Buildings as
well as any parking charges, utilities surcharges, or any other costs levied, assessed or imposed
by, or at the direction of, or resulting from statutes or regulations, or interpretations thereof,
promulgated by any Governmental Authority in connection with the use or occupancy of the Premises
or the parking facilities exclusively serving the Premises; any tax on this transaction or this
Lease; provided, however, that “Taxes” shall in no event include any
franchise or federal or state income tax, excess profit taxes, gift taxes, capital stock taxes,
inheritance and succession taxes, estate taxes or any tax based on net rentals received from the
rental of space in the Buildings. Any amount paid by Tenant for any partial year of the Term shall
be prorated on the basis of the number of days of such partial year. Payment shall be made in the
following manner: Tenant shall pay to Landlord the amounts owed under this Article 7
within thirty (30) days after Landlord gives notice to Tenant of the amount of such Taxes payable
by Tenant (or not less than fifteen (15) days prior to delinquency, whichever is later). Landlord
also shall provide Tenant with a copy of the applicable tax bill or tax statement from the relevant
taxing authority. Notwithstanding the foregoing, if Applicable Laws allow any such Taxes to be
paid in installments, then Tenant may make such payments to Landlord in installments, provided that
each such installment shall be payable to Landlord not less than ten (10) days prior to the date
upon which payment of the applicable installment to the taxing authority becomes delinquent. In
addition to any other amounts due from Tenant to Landlord, if Tenant fails to pay Taxes to Landlord
as herein required, Tenant shall pay to Landlord the amount of any interest, penalties or late
charges imposed by any governmental authority for late payment. “Applicable Laws” means
all federal, state, municipal and local laws, codes, ordinances, rules and regulations of
Governmental Authorities, committees, associations, or other regulatory committees, agencies or
governing bodies having jurisdiction over the Premises, Landlord or Tenant, including both
statutory and common law and hazard waste rules and regulations.

          7.1.1 Tenant shall have the right, by appropriate proceedings, to protest or contest in good
faith any assessment or reassessment of Taxes, any special assessment, or the validity of any Taxes
or of any change in assessment or tax rate; provided, however, that prior to any
such challenge Tenant must either (a) pay the Taxes alleged to be due in their entirety and seek a
refund from the appropriate authority or (b) post a bond in an amount sufficient to ensure full
payment of the Taxes, including any potential interest, late charge and penalties. Upon a final
determination with respect to any such contest or protest, Tenant shall promptly pay to the
appropriate Governmental Authority all sums found to be due with respect thereto. In any such
protest or contest, Tenant may act in its own name, and at the request of Tenant, Landlord shall
cooperate with Tenant in any way Tenant may reasonably require in connection with such contest or
protest, including signing such documents as Tenant reasonably shall request, provided that
such cooperation shall be at no expense to Landlord and shall not require Landlord to attend any
appeal or other hearing. Any such contest or protest shall be at Tenant’s sole expense, and if any
penalties, interest or late charges become payable with respect to the Taxes as a result of such
contest or protest, Tenant shall pay the same.

          7.1.2 If Tenant obtains a refund as the result of Tenant’s protest or contest, and subject to
Tenant’s obligation to pay Landlord’s costs (if any) associated therewith, Tenant shall be entitled
to such refund to the extent it relates to the Premises during the Term.

     7.2. If, at any time during the Term under the laws of any Governmental Authority, a tax or
excise on rent or any other tax howsoever described is levied or assessed by any such political
body against Landlord on account of rentals payable to Landlord hereunder, such tax or excise shall
be considered “Taxes” for the purposes of this Article 7, although any amount
assessed against Landlord as state or federal income tax shall not be deemed “Taxes.”

     7.3. To the extent Landlord is required by a lender, Tenant shall timely pay all tax and
insurance impound payments due on the Premises.

     7.4. Taxes on Tenant’s Property.

          7.4.1 Tenant shall pay at least twenty (20) days prior to delinquency any and all taxes levied
against any personal property or trade fixtures placed by Tenant in or about the Premises.

          7.4.2 If any such taxes on Tenant’s personal property or trade fixtures are levied against
Landlord or Landlord’s property or, if the assessed valuation of the Buildings are increased by
inclusion therein of a value attributable to Tenant’s personal property or trade

4

 

fixtures, and if
Landlord, after written notice to Tenant, pays the taxes based upon any such increase in the
assessed valued of the Buildings, then Tenant shall, upon demand, repay to Landlord the taxes so
paid by Landlord.

     7.5. Cut-Off Date. Notwithstanding anything herein to the contrary, Tenant shall not
be responsible for Taxes attributable to any calendar year which are first billed to Tenant more
than eighteen (18) months after the expiration of the applicable calendar year, except with respect
to supplemental Taxes.

8. Security Deposit.

     8.1. Pursuant to the Original Lease, Tenant has deposited with Landlord an amount equal to
$1,911,855 as the security deposit under the Original Lease (the “Original Lease Security
Deposit”), and (a) from and after the Execution Date, Landlord shall continue to hold a portion
of the Original Lease Security Deposit equal to $865,177.50 (the “Security Deposit”) in
accordance with the terms and conditions of this Section 8, (b) from and after the
Execution Date, Landlord shall hold a portion of the Original Lease Security Deposit equal to
$40,836.75 in accordance with the terms and conditions of Section 10 of the Parcel 3 Lease, and (c)
Landlord shall return the remaining portion of the Original Lease Security Deposit in an amount
equal to $1,005,840.75 to Tenant

     8.2. The Security Deposit shall be held by Landlord as security for the faithful performance
by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by
Tenant during the period commencing on the Execution Date and ending upon the expiration or
termination of this Lease. If Tenant defaults with respect to any provision of this Lease,
including, but not limited to, any provision relating to the payment of Rent, then Landlord may
(but shall not be required to) use, apply or retain all or any part of the Security Deposit for the
payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or
damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security
Deposit is so used or applied, then Tenant shall, within twenty (20) days following demand
therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its
original amount, and Tenant’s failure to do so shall be a material breach of this Lease. Landlord
shall not be required to keep this Security Deposit separate from its general fund, and Tenant
shall not be entitled to interest on the Security Deposit. The provisions of this Article
8 shall survive the expiration or earlier termination of this Lease.

     8.3. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the
Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due
Landlord for all periods prior to the filing of such proceedings.

     8.4. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds
deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further
liability with respect to such deposit. This provision shall also apply to any subsequent
transfers.

     8.5. If Tenant is not then in Default under this Lease nor is any event then occurring which
with the giving of notice or the passage of time, or both, would constitute a Default hereunder,
then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s
option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the
expiration or earlier termination of this Lease.

     8.6. The Security Deposit may be in the form of cash, a letter of credit or any other security
instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except
during Default, deliver a letter of credit (“L/C Security”) as the entire Security
Deposit, as follows.

          8.6.1 If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and
maintain in full force and effect throughout the Term, a letter of credit in substantially the form
of Exhibit D issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security
Deposit, with an initial term of at least one year. If, at the Expiration Date, any Rent remains
uncalculated or unpaid, then: (a) Landlord shall with reasonable diligence complete any necessary
calculations; (b) Tenant shall extend the expiry date of such L/C Security from time to time as
Landlord reasonably requires; and (c) in such extended period,

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Landlord shall not unreasonably
refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse
Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of
L/C Security or its replacement or extension

          8.6.2 If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security
Deposit, Landlord shall promptly remit to Tenant any cash Security Deposit Landlord previously
held.

          8.6.3 Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same
manner and for the same purposes as the Security Deposit, if: (a) an uncured Default exists; (b)
as of the date thirty (30) days before any L/C Security expires (even if such scheduled expiry date
is after the Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for
such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of
(i) six (6) months after the then-current Expiration Date or (ii) the date one year after the
then-current expiry date of the L/C Security; (c) the L/C Security provides for automatic renewals,
Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to
do so within ten (10) business days; (d) Tenant fails to pay (when and as Landlord reasonably
requires) any bank charges for Landlord’s transfer of the L/C Security; or (e) the issuer of the
L/C Security ceases, or announces that it will cease, to maintain an office in the city where
Landlord may present drafts under the L/C Security. This Section does not limit any other
provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances.

          8.6.4 Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw
under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a
wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no
legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and
for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties
shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to
Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the
issuer of the L/C Security that Landlord’s draw was erroneous.

          8.6.5 If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s
expense, within ten (10) business days after receiving a request from Landlord, deliver (and, if
the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s
grantee as substitute beneficiary; provided, however, in the event Landlord
transfers its interest in the Premises more than once in a twelve (12) month period, Landlord shall
pay any fee owed to the issuing bank in connection with any such additional transfer. If the
required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the
issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

9. Use.

     9.1. Tenant shall use the Premises for the purpose set forth in Section 2.7, and shall
not use the Premises, or permit or suffer the Premises to be used, for any other purpose without
Landlord’s prior written consent, which consent Landlord may withhold in its reasonable discretion.

     9.2. Tenant shall not use or occupy the Premises in violation of Applicable Laws; zoning
ordinances; or the certificate of occupancy issued for the Buildings, and shall, upon five (5)
days’ written notice from Landlord, discontinue any use of the Premises that is declared or claimed
by any Governmental Authority having jurisdiction to be a violation of any of the above, or that
Landlord has a reasonable basis to believe that such use violates any of the above and
Landlord identifies such basis in its notice to Tenant. Tenant shall comply with any
direction of any Governmental Authority having jurisdiction that shall, by reason of the nature of
Tenant’s use or occupancy of the Premises, impose any duty upon Tenant with respect to the Premises
or with respect to the use or occupation thereof.

     9.3. Tenant shall not do or permit to be done anything that will invalidate or increase the
cost of any fire, environmental, extended coverage or any other insurance policy covering the
Premises, and shall comply with all rules, orders, regulations and requirements of the insurers of
the Premises, and Tenant shall promptly, upon demand, reimburse Landlord for any additional

premium charged for such policy by reason of Tenant’s failure to comply with the provisions of this
Article 9.

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     9.4. Tenant shall, at its sole cost and expense, promptly and properly observe and comply with
all present and future orders, regulations, directions, rules, laws, ordinances, and requirements
of all Governmental Authorities (including, without limitation, state, municipal, county and
federal governments and their departments, bureaus, boards and officials) arising from the use or
occupancy of the Premises, including, without limitation, the requirements of Americans with
Disabilities Act of 1990 (together with regulations promulgated pursuant thereto, the
“ADA”). Tenant’s obligations under this Section 9.4 shall include any alterations
to the Premises that Tenant is required or elects to make pursuant to the terms of this Lease.

     9.5. Tenant shall keep all doors opening onto public corridors closed, except when in use for
ingress and egress.

     9.6. No additional locks or bolts of any kind shall be placed upon any of the doors or windows
by Tenant, nor shall any changes be made to existing locks or the mechanisms thereof without
Landlord’s prior written consent. Tenant shall, upon termination of this Lease, return to Landlord
all keys to offices and restrooms either furnished to or otherwise procured by Tenant. In the
event any key so furnished to Tenant is lost, Tenant shall pay to Landlord the cost of replacing
the same or of changing the lock or locks opened by such lost key if Landlord shall deem it
necessary to make such change

     9.7. No awnings or other projections shall be attached to any outside wall of the Buildings.
No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with,
any window or door of the Premises other than Landlord’s standard window coverings. Neither the
interior nor exterior of any windows shall be coated or otherwise sunscreened without Landlord’s
prior written consent, nor shall any bottles, parcels or other articles be placed on the
windowsills. No equipment, furniture or other items of personal property shall be placed on any
exterior balcony without Landlord’s prior written consent.

     9.8. Tenant shall, at Tenant’s sole cost and expense, have the exclusive right to install the
maximum amount of any legally permitted signage on the Premises (including any building thereon)
(“Signage”), which Signage shall be subject to Landlord’s prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed. Tenant shall keep the Signage
in good condition and repair. The size, design, and other physical aspects of any sign shall be
subject to Landlord’s written approval prior to installation, which approval will not unreasonably
be withheld, any covenants, conditions, or restrictions encumbering the Premises and, any
Applicable Laws. The cost of the sign(s), including but not limited to the permitting,
installation, maintenance and removal thereof shall be at Tenant’s sole cost and expense. If Tenant
fails to maintain its sign(s), or if Tenant fails to remove such sign(s) upon termination of this
Lease, or fails to repair any damage caused by such removal (including without limitation, painting
the damaged portions of the Buildings and any other portions of the Buildings that Landlord
reasonably determines in good faith shall be painted so that repainting the damaged portion of the
Buildings does not adversely affect the visual appearance of the Buildings, if required by
Landlord; provided, however, in no event shall Landlord require Tenant to repaint
an entire Building), Landlord may do so at Tenant’s expense. Tenant shall on demand reimburse
Landlord for all costs incurred by Landlord to effect such removal, which amounts shall be deemed
Additional Rent and shall include without limitation, all sums disbursed, incurred or deposited by
Landlord, including Landlord’s costs, expenses and actual attorneys’ fees with interest thereon.
Tenant shall indemnify, defend and hold harmless Landlord from and against any loss, cost, claim,
lawsuit, liability or expense (including reasonable attorneys’ fees and disbursements) arising
directly or indirectly out of Tenant’s failure to perform any of its
obligations under this Section 9.8. By executing this Lease, Landlord hereby approves
the signage currently existing on the Premises.

     9.9. Tenant shall only place equipment within the Premises with floor loading consistent with
the structural design of the Buildings without Landlord’s prior written approval, and such
equipment shall be placed in a location designed to carry the weight of such equipment.

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     9.10. Tenant shall not (a) use or allow the Premises to be used for any unlawful or reasonably
objectionable purposes or (b) cause, maintain or permit any nuisance or waste in, on or about the
Premises.

     9.11. Notwithstanding any other provision herein to the contrary, Tenant shall be responsible
for all liabilities, costs and expenses arising out of or in connection with the compliance of the
Premises with the ADA, and Tenant shall indemnify, defend and hold harmless Landlord from and
against any loss, cost, claim, lawsuit, liability or expense (including reasonable attorneys’ fees
and disbursements) arising out of any failure of the Premises to comply with the ADA. The
provisions of this Section 9.11 shall survive the expiration or earlier termination of this
Lease.

10. Brokers.

     10.1. Tenant represents and warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this Lease other than Steve Rosetta and Ted Simpson,
Cushman & Wakefield (“Tenant’s Broker”), and that it knows of no other real estate broker
or agent that is or might be entitled to a commission in connection with this Lease. Landlord
shall compensate Tenant’s Broker in relation to this Lease pursuant to a separate agreement between
Landlord and Landlord’s Broker (the “Commission Agreement”).

     10.2. Landlord represents and warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this Lease other than Doug Lozier at CB Richard
Ellis, Inc. (“Landlord’s Broker”), and that it knows of no other real estate broker or
agent that is or might be entitled to a commission in connection with this Lease. Landlord shall
compensate Landlord’s Broker in relation to this Lease pursuant to the Commission Agreement.

     10.3. Tenant acknowledges and agrees that the employment of brokers by Landlord is for the
purpose of solicitation of offers of leases from prospective tenants and that no authority is
granted to any broker to furnish any representation (written or oral) or warranty from Landlord
unless expressly contained within this Lease. Landlord is executing this Lease in reliance upon
Tenant’s representations, warranties and agreements contained within Section 10.1.

     10.4. Tenant agrees to indemnify, defend and hold Landlord harmless from any and all cost or
liability for compensation claimed by any other broker or agent, other than Tenant’s Broker,
employed or engaged by it or claiming to have been employed or engaged by Tenant. Landlord agrees
to indemnify, defend and hold Tenant harmless from any and all cost or liability for compensation
claimed by any other broker or agent, other than Landlord’s Broker, employed or engaged by it or
claiming to have been employed or engaged by Landlord.

11. Holding Over.

     11.1. If, with Landlord’s prior written consent, Tenant holds possession of all or any part of
the Premises after the Term, Tenant shall become a tenant from month to month after the expiration
or earlier termination of the Term, and in such case Tenant shall continue to pay (a) the Basic
Annual Rent in accordance with Article 5, as adjusted in accordance with Article 6,
and (b) any amounts for which Tenant would otherwise be liable under this Lease if this Lease were
still in effect, including, without limitation, payments for Taxes and insurance. Any such
month-to-month tenancy shall be subject to every other term, covenant and agreement contained
herein.

     11.2. Notwithstanding the foregoing, if Tenant remains in possession of the Premises after the
expiration or earlier termination of the Term without Landlord’s prior written consent, Tenant
shall become a tenant at sufferance subject to the terms and conditions of this Lease, except that
the per diem Basic Annual Rent shall be equal to: (a) for the first three (3) months that Tenant
remains in possession of the Premises after the expiration or earlier termination of
this Lease, one hundred twenty-five percent (125%) of the Basic Annual Rent in effect during
the last thirty (30) days of the Term; and (b) for any time thereafter that Tenant remains in
possession of the Premises after the expiration or earlier termination of this Lease, one hundred
fifty percent (150%) of the Basic Annual Rent in effect during the last thirty (30) days of the
Term.

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     11.3. Acceptance by Landlord of Rent after the expiration or earlier termination of the Term
shall not result in an extension, renewal or reinstatement of this Lease.

     11.4. The foregoing provisions of this Article 11 are in addition to and do not affect
Landlord’s right of reentry or any other rights of Landlord hereunder or as otherwise provided by
Applicable Laws.

12. Property Management Fee. Tenant shall pay to Landlord on the first day of each
calendar month of the Term, as Additional Rent, the “Property Management Fee,” which shall
equal one and a half percent (1.5%) of the Basic Annual Rent due from Tenant.

13. Condition of Premises. Except as otherwise provided herein, Tenant acknowledges
that neither Landlord nor any agent of Landlord has made any representation or warranty with
respect to the condition of the Premises or with respect to the suitability of the Premises for the
conduct of Tenant’s business.

14. Regulations and Parking; Recreation Facilities.

     14.1. Rules and Regulations. Tenant shall faithfully observe and comply with the
rules and regulations adopted by Landlord and attached hereto as Exhibit B, together with such
other reasonable and nondiscriminatory rules and regulations as are hereafter promulgated by
Landlord in its reasonable discretion (the “Rules and Regulations”).

          14.2. Reciprocal Easement Agreement.

          14.2.1 Tenant shall have the right to use the fitness center, the full court basketball/sports
courts, outdoor seating areas, dressing, locker and working rooms, restrooms, and showers located
on the Parcel 3 Land (collectively, the “Recreation Facilities”) pursuant to the terms and
conditions of the Reciprocal Easement Agreement attached hereto as Exhibit F (the “REA”).

          14.2.2 Tenant shall, at Tenant’s sole cost and expense, comply with the terms and conditions
set forth in, and perform each of the obligations of the Parcels 1&2 Owner (as defined in the REA)
described in, Sections 2, 4.1, 4.2, 4.3, 4.4, 4.8,
7, 8, 9, 11.3, 11.10, 11.11 and 11.12 of
the REA in accordance with the terms of conditions of the REA as if Tenant were the Parcels 1&2
Owner.

          14.2.3 Tenant shall, and shall cause Tenant’s Agents to, faithfully observe and comply with
any rules and regulations adopted pursuant to Section 4.7 of the REA (the “Recreation
Facilities Rules and Regulations”). The Parcel 3 Owner (as defined in the REA) has the right
to refuse to allow Tenant’s Agents to access the Recreation Facilities if such Tenant’s Agent has
not complied with the applicable Recreation Facilities Rules and Regulations after receiving
written notice of such failure to comply.

          14.2.4 Notwithstanding anything to the contrary in this Lease, Landlord shall have no
responsibility to Tenant or Tenant’s Agents (as defined below), for any accidents, claims, demands,
liabilities, causes of action, judgments, costs, liens, damages, injuries, suits, losses or
expenses, including attorneys’ fees, of any nature, kind or description, arising out of, caused by,
or resulting from Tenant or Tenant’s Agent’s use of the Recreational Facilities or the negligence
of Landlord Parties (as defined in Section 19.3) or Tenant’s Agents in connection with the
operation and maintenance of such Recreational Facilities.

          14.2.5 So long as this Lease is in full force and effect, Landlord shall not amend or modify
the REA without first obtaining: (a) the prior written consent of the original Tenant
hereunder (but not any assignee or subtenant), which consent shall not be unreasonably
withheld, conditioned or delayed, and (b) solely with respect to amendments or modifications that
could reasonably be expected to have a material adverse effect on obligations assumed by any
successors and assigns of Tenant under the REA, the prior written consent of any such successors
and assigns, which consent shall not be unreasonably withheld, conditioned or delayed. All
amendments or modifications which result in an increase of the costs and expenses to be incurred by
Tenant under Section 14.2.2 shall be deemed material and adverse.

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     14.3. Parking.

          14.3.1 Before Landlord commences construction of the New Parcel 3 Building, Landlord shall
coordinate and discuss with Tenant necessary restrictions to the parking spaces located on the
Property in connection with the construction of the New Parcel 3 Building. Landlord shall have the
right to remove or relocate parking spaces on the Property and temporarily erect barricades which
are reasonably necessary, as determined by Landlord, for security and/or safety purposes in
connection with the construction of the New Parcel 3 Building, or are otherwise permitted in
accordance with Section 14.4 hereof.

          14.3.2 From the Execution Date through the Substantial Completion (as defined in the Parcel 3
Lease) of the New Parcel 3 Building, Tenant shall have the right to use, at no additional cost, (i)
subject to Section 14.3.1, any parking spaces located on the Property which are not
affected by the construction on the New Parcel 3 Building, and (ii) subject to Section
14.3.1 and the rights of Diversified under the Diversified Lease, any parking spaces located in
the Temporary Parking Easement (as defined in the REA) pursuant to, and in accordance with, the
terms and conditions of the REA. Furthermore, should Tenant require additional parking other than
as set forth above, Landlord and Tenant will work together to determine a parking solution that is
acceptable to both parties (which may include Landlord obtaining off-site parking for Tenant).

          14.3.3 From and after the Substantial Completion of the New Parcel 3 Building, Tenant shall
have the right to use, at no additional cost, the parking facilities serving the Premises, which
shall include, (i) 277 spaces located on the Property (the “Parcels 1&2 Parking Spaces”),
and (ii) 40 spaces located on the Parcel 3 Land pursuant to, and in accordance with, the terms and
conditions of the REA. Tenant shall maintain the Parcels 1&2 Parking Spaces in accordance with
Section 17. Tenant shall maintain the Parcels 1&2 Parking Spaces and shall not reduce the
number of Parcels 1&2 Parking Spaces below the number referenced in clause (i) above.

15. Utilities and Services.

     15.1. Tenant shall, at Tenant’s sole cost and expense, procure and maintain contracts, with
copies furnished promptly to Landlord after execution thereof, in customary form and substance for,
and with contractors specializing and experienced in, the maintenance of the following equipment
and improvements, if any, if and when installed on the Premises (a) HVAC equipment, (b) boilers and
pressure vessels, (c) fire extinguishing systems, including fire alarm and smoke detection devices,
(d) landscaping and irrigation systems, (e) roof coverings and drains, (f) clarifiers, (g) basic
utility feeds to the perimeter of the Buildings; and (h) any other equipment reasonably required by
Landlord. Notwithstanding the foregoing, in the event Tenant fails to maintain the contracts
required under this Section 15.1 within one (1) business day after Landlord provides Tenant
written notice of such failure, Landlord reserves the right, upon notice to Tenant, to procure and
maintain any or all of such contracts, and if Landlord so elects, Tenant shall reimburse Landlord,
upon demand, for the actual documented costs thereof.

     15.2. Within sixty (60) days after the Execution Date, and within sixty (60) days after the
beginning of each calendar year during the Term, Landlord shall give Tenant a written estimate for
such calendar year of the cost of utilities, if not separately metered (“Utility Costs”),
insurance provided by Landlord (“Insurance Costs”). Tenant shall pay such estimated amount
to Landlord in advance in equal monthly installments. Within ninety (90) days after the end of
each calendar year, Landlord shall furnish to Tenant a statement showing in reasonable detail the
costs incurred by Landlord for Utility Costs and Insurance Costs for the Premises during such year
(the “Annual Statement”), and Tenant shall pay to Landlord the costs incurred in excess of
the payments previously made by Tenant within thirty (30) days of receipt of the Annual Statement.
In the event that the payments previously made by Tenant for Utility Costs and
Insurance Costs for the Premises exceed Tenant’s obligation, such excess amount shall be
credited by Landlord to the Rent or other charges next due and owing, provided that, if the
Term has expired, Landlord shall remit such excess amount to Tenant. In the event Tenant disputes
the amounts of any Annual Statement for the particular calendar year delivered by Landlord to
Tenant and Tenant is not in Default hereunder, Tenant shall have the right, at Tenant’s cost, after
reasonable notice to Landlord, to have Tenant’s authorized employees inspect, at Landlord’s office
in San Diego County during normal business hours, Landlord’s books, records and supporting
documents concerning the expenses set forth in such Annual Statement; provided, however, Tenant
shall have no right to conduct such inspection, have an audit performed by the Accountant as
described below, or object to or otherwise dispute the amount of the expenses set

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forth in any such
Annual Statement unless Tenant notifies Landlord of such objection and dispute, completes such
inspection, and has the Accountant commence and complete such audit within one hundred and eighty
(180) days immediately following Landlord’s delivery of the particular Annual Statement in question
(the “Review Period”); provided, further, that notwithstanding any such timely objection,
dispute, inspection, and/or audit, and as a condition precedent to Tenant’s exercise of its right
of objection, dispute, inspection and/or audit as set forth in this Section 15.2, Tenant
shall not be permitted to withhold payment of, and Tenant shall timely pay to Landlord, the full
amounts as required by the provisions of this Lease in accordance with such Annual Statement.
However, such payment may be made under protest pending the outcome of any audit which may be
performed by the Accountant as described below. In connection with any such inspection by Tenant,
Landlord and Tenant shall reasonably cooperate with each other so that such inspection can be
performed pursuant to a mutually acceptable schedule. If after such inspection and/or request for
documentation, Tenant still disputes the amount of the expenses set forth in the Annual Statement,
Tenant shall have the right, within the Review Period, to cause an independent certified public
accountant selected by Tenant and compensated on a non-contingency fee basis (the
“Accountant”) to complete an audit of Landlord’s books and records to determine the proper
amount of the expenses incurred and amounts payable by Tenant for the calendar year which is the
subject of such Annual Statement. Such audit by the Accountant shall be final and binding upon
Landlord and Tenant. If such audit reveals that Landlord has over-charged Tenant, then within
thirty (30) days after the results of such audit are made available to Landlord, Landlord shall
reimburse to Tenant the amount of such over-charge. If the audit reveals that the Tenant was
under-charged, then within thirty (30) days after the results of such audit are made available to
Tenant, Tenant shall reimburse to Landlord the amount of such under-charge. Tenant agrees to pay
the cost of such audit unless it is subsequently determined that Landlord’s original Annual
Statement which was the subject of such audit overstated expenses by five percent (5%) or more of
the actual expenses which were the subject of such audit. The payment by Tenant of any amounts
pursuant to this Section 15.2 shall not preclude Tenant from questioning, during the Review
Period, the correctness of the particular Annual Statement in question provided by Landlord, but
the failure of Tenant to object thereto, conduct and complete its inspection and have the
Accountant conduct the audit as described above prior to the expiration of the Review Period for
such Annual Statement shall be conclusively deemed Tenant’s approval of the Annual Statement in
question and the amount of expenses shown thereon. If following Tenant’s delivery to Landlord of a
written request to make Landlord’s books and records regarding the expenses reasonably available to
Tenant and/or the Accountant to conduct any such inspection and/or audit described above in this
Section 15.2, Landlord fails to make Landlord’s books reasonably available for such
purposes during Landlord’s normal business hours, and such failure continues for five (5) business
days after Tenant notifies Landlord thereof, then the Review Period shall be extended one (1) day
for each such additional day that Tenant and/or the Accountant, as the case may be, is so prevented
from accessing such books and records. In connection with any inspection and/or audit conducted by
Tenant pursuant to this Section 15.2, Tenant agrees to keep, and to cause all of Tenant’s
employees and consultants and the Accountant to keep, all of Landlord’s books and records and the
audit, and all information pertaining thereto and the results thereof, strictly confidential
(except if required by any court to disclose such information or if such information is available
from an inspection of public records).

     15.3. Tenant shall make all arrangements for and pay for all water, sewer, gas, heat, light,
power, telephone service and any other service or utility Tenant required at the Premises.
Landlord shall not be liable for, nor shall any eviction of Tenant result from, the failure to
furnish any utility or service, whether or not such failure is caused by Force Majeure (as defined
below) or Landlord’s inability, despite the exercise of reasonable diligence, to furnish any such
utility or service. In the event of such failure, Tenant shall not be entitled to termination of
this Lease, any abatement or reduction of Rent, or relief from the operation of any covenant or
agreement of this Lease. Tenant shall pay for, prior to delinquency of payment therefor, any
utilities and services that may be furnished to the Premises during or, if Tenant occupies the
Premises after the expiration or earlier termination of the Term, after the Term.

     15.4. Notwithstanding the foregoing and subject to Sections 14.3 and 31, if
because of (i) any repair, maintenance, alteration, development or construction performed by
Landlord on the Premises after the Commencement Date, which substantially interferes with Tenant’s
use of the Premises and which was not caused by Tenant, (ii) any material interference by Landlord
with Tenant’s access to the Premises (including the parking facilities) that is not caused by

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Tenant, or (iii) the presence of Hazardous Materials in, on or around the Premises in connection
with the Landlord’s Construction Work or the Tenant Improvements (each as defined in the Parcel 3
Lease) which (a) is not caused by Tenant, and (b) poses a health risk to occupants of the Premises
(each, an “Adverse Condition”), Tenant is unable to conduct its business in a reasonable
manner in a material portion of the Premises as a direct result of the Adverse Condition and Tenant
therefore actually does not occupy or use such portion of the Premises, as the case may be, and
such condition persists for more than the “Interruption Period” (as defined below), then following
the Interruption Period, Tenant shall be entitled to an abatement of Rent for the portion of the
Premises rendered untenantable. However, in the event that the remaining portion of the Premises
is not sufficient to allow Tenant to conduct its business therein, and if Tenant does not conduct
its business from such remaining portion, then for such time after expiration of the Interruption
Period during which Tenant is so prevented from effectively conducting its business therein, the
Rent for the entire Premises shall be abated; provided, however, if Tenant
continues to occupy any portion of the Premises, or reoccupies and conducts its business from any
portion of the Premises, during such period, the Rent allocable to such reoccupied portion, based
on the proportion that the rentable area of such reoccupied portion of the Premises bears to the
total rentable area of the Premises, shall be payable by Tenant from the date such business
operations commence. Such abatement shall commence as of the first day after the expiration of the
“Interruption Period” and terminate upon the cessation of such Adverse Condition. As used herein,
the term “Interruption Period” shall mean seven (7) consecutive business days after written
notice thereof to Landlord, or such shorter period as applicable under the coverage which is or
would be covered by rental abatement insurance required to be carried by Landlord.

16. Alterations.

     16.1. Tenant shall make no alterations, additions or improvements in or to the Premises or
engage in any construction, demolition, reconstruction, renovation, or other work of any kind in,
at, or serving the Premises (“Alterations”) without Landlord’s prior written approval,
which approval Landlord may withhold in its sole and absolute discretion; provided,
however, that Landlord’s approval shall not be unreasonably withheld, conditioned or
delayed in connection with any Alteration that does none of the following (i) adversely affects the
exterior appearance of a Building or the Premises, (ii) adversely affects the structural aspects of
a Building, including, without limitation, the roof, foundation, load bearing walls and structural
elements of the Premises, (iii) adversely affects any base-building system or equipment, including,
without limitation, the base building HVAC, mechanical, electrical, plumbing or life safety
systems; (iv) creates a foreseeable risk of violating any Applicable Law or increasing insurance
premiums; (v) violates any recorded document affecting the Premises; (vi) causes a Building to be
inconsistent with the quality and scope of a class “A” office buildings in the vicinity of the
Buildings; (vii) involves a use of the Premises that is inconsistent with the current use of the
Premises; nor (viii) in Landlord’s reasonable judgment, reduces the quality or value of a Building
or the Premises (each, a “Design Problem”). In seeking Landlord’s approval, Tenant shall
provide Landlord, at least ten (10) business days in advance of any proposed construction, with
plans, specifications, bid proposals, work contracts, requests for laydown areas and such other
information concerning the nature and cost of the Alterations as Landlord may reasonably request.

     16.2. Notwithstanding the provisions of Section 16.1, Tenant may make non-structural
Alterations to the Premises (“Acceptable Changes”) upon at least ten (10) business days
prior written notice to Landlord but without Landlord’s prior consent provided (a) the Acceptable
Changes do not involve Design Problems; and (b) the cost of such Acceptable Changes do not exceed
Fifty Thousand Dollars ($50,000) per occurrence or an aggregate amount of One Hundred Thousand
Dollars ($100,000) in any twelve (12) month period.

     16.3. All Alterations made by Tenant shall be: (a) performed in a good and workmanlike manner
and in conformance with any and all Applicable Laws and CC&Rs; and (b) shall be made only by a
licensed, bonded contractor and such architects, suppliers and mechanics approved in advance by
Landlord (which shall not be unreasonably withheld, conditioned or delayed); provided,
however, that such contractor need not be bonded or approved and such architects, suppliers
and mechanics need not be approved by Landlord in connection with Acceptable Changes.

     16.4. Tenant shall not construct or permit to be constructed partitions or other obstructions
that will interfere with free access to mechanical installation or service facilities of
the Buildings, or interfere with the moving of Landlord’s equipment to or from the enclosures
containing such installations or facilities.

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     16.5. Tenant shall accomplish any work performed on the Premises in such a manner as to permit
any fire sprinkler system and fire water supply lines to remain fully operable at all times.

     16.6. Tenant covenants and agrees that all work done by Tenant or Tenant’s contractors shall
be performed in full compliance with Applicable Laws. Within thirty (30) days after completion of
any Alterations, Tenant shall provide Landlord with complete “as-built” drawing print sets and
electronic CADD files on disc (or files in such other current format in common use as Landlord
reasonably approves or requires) showing any changes in the Premises (but only if drawings and
plans were required by this Lease or were prepared in connection with any such Alterations).

     16.7. Before commencing any work, Tenant shall give Landlord at least ten (10) business days’
prior written notice of the proposed commencement of such work.

     16.8. Except for those items listed on Exhibit A, all Alterations, attached equipment,
decorations, fixtures, trade fixtures, additions and improvements, subject to Section 16.8,
attached to or built into the Premises, made by either of the Parties, including, without
limitation, all floor and wall coverings, built-in cabinet work and paneling, sinks and related
plumbing fixtures, laboratory benches, exterior venting fume hoods and walk-in freezers and
refrigerators, ductwork, conduits, electrical panels and circuits shall (unless, prior to such
construction or installation, Landlord elects otherwise) become the property of Landlord upon the
expiration or earlier termination of the Term, and shall remain upon and be surrendered with the
Premises as a part thereof. The Premises shall at all times remain the property of Landlord and
shall be surrendered to Landlord upon the expiration or earlier termination of this Lease. Except
for those items on Exhibit A, all trade fixtures, Alterations and Signage installed by or under
Tenant shall be the property of Landlord. Notwithstanding the foregoing, at any time during the
Term, subject to Landlord’s prior written approval, which approval shall not be unreasonably
withheld, conditioned or delayed, Tenant shall have the right to update Exhibit A.

     16.9. Tenant shall repair any damage to the Premises caused by Tenant’s removal of any
property from the Premises. During any such restoration period, Tenant shall pay Rent to Landlord
as provided herein as if the affected portion of the Premises were otherwise occupied by Tenant.
The provisions of this Section shall survive the expiration or earlier termination of this Lease.

     16.10. Except as to those items listed on Exhibit A attached hereto, all business and trade
fixtures, machinery and equipment, built-in furniture and cabinets, together with all additions and
accessories thereto, attached to or built into the Premises shall be and remain the property of
Landlord and shall not be moved by Tenant at any time during the Term. If Tenant shall fail to
remove any of its effects from the Premises within ten (10) days after the termination of this
Lease, then Landlord may, at its option, remove the same in any manner that Landlord shall choose
and store said effects without liability to Tenant for loss thereof or damage thereto, and Tenant
shall pay Landlord, upon demand, any actual, documented and reasonable costs and expenses incurred
due to such removal and storage or Landlord may, at its sole option and upon notice to Tenant, sell
such property or any portion thereof at private sale and without legal process for such price as
Landlord may obtain and apply the proceeds of such sale against any (a) amounts due by Tenant to
Landlord under this Lease and (b) any actual and documented expenses incident to the removal,
storage and sale of said personal property.

     16.11. Notwithstanding any other provision of this Article 16 to the contrary, in no
event shall Tenant remove any improvement from the Premises as to which Landlord contributed
payment without Landlord’s prior written consent, which consent Landlord may withhold in its sole
and absolute discretion.

     16.12. Tenant shall pay to Landlord an amount equal to one and one-half percent (1.5%) of the
cost to Tenant of all Alterations installed by Tenant or its contractors or agents to cover
Landlord’s overhead and expenses for plan review, coordination, scheduling and supervision thereof
but only for those Alterations requiring Landlord’s consent. For purposes of payment of such sum,
Tenant shall submit to Landlord copies of all bills, invoices and statements covering

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the costs of
such charges, accompanied by payment to Landlord of the fee set forth in this Section. Tenant shall
reimburse Landlord for any extra expenses incurred by Landlord by reason of faulty work done by
Tenant or its contractors.

     16.13. Upon Landlord’s written request, within sixty (60) days after final completion of any
Alterations performed by Tenant with respect to the Premises, Tenant shall submit to Landlord
documentation showing the amounts expended by Tenant with respect to such Alterations, together
with supporting documentation reasonably acceptable to Landlord.

     16.14. Tenant shall require its contractors and subcontractors performing work on the Premises
to name Landlord and its affiliates and lenders as additional insureds on their respective
insurance policies.

17. Repairs and Maintenance.

     17.1. Subject to Landlord’s obligations hereunder, Tenant, at its sole cost and expense, shall
maintain and keep the Premises, all improvements thereon, and all appurtenances thereto, including
but not limited to sidewalks, parking areas, curbs, roads, driveways, lighting standards,
landscaping, sewers, water, gas and electrical distribution systems and facilities, drainage
facilities, and all signs, both illuminated and non-illuminated that are now or hereafter on the
Premises, in good condition and in a manner consistent with the Permitted Use. Tenant shall make
all repairs, replacements and improvements, including, without limitation, all HVAC, plumbing and
electrical repairs, replacements and improvements required, and shall keep the same free and clear
from all rubbish and debris, excluding, however, the foundation, slab, structural portions of the
walls and roof (not including the membrane), and structural steel aspects of the Buildings. All
repairs made by Tenant shall be at least equal in quality to the original work, and shall be made
only by a licensed, bonded contractor approved in advance by Landlord (which shall not be
unreasonably withheld, conditioned or delayed); provided, however, that such
contractor need not be bonded or approved by Landlord if the non-structural alterations, repairs,
additions or improvements to be performed do not exceed Fifty Thousand Dollars ($50,000) per
occurrence or an aggregate amount of One Hundred Thousand Dollars ($100,000) in any twelve (12)
month period. Tenant shall not take or omit to take any action, the taking or omission of which
shall cause waste, damage or injury to the Premises. Tenant shall indemnify, defend (by legal
counsel acceptable to Landlord) and hold harmless Landlord from and against any and all Claims (as
defined below) arising out of the failure of Tenant or Tenant’s Agents to perform the covenants
contained in this Section. “Tenant’s Agents” shall be defined to include Tenant’s
officers, employees, agents, contractors, invitees, customers and subcontractors.

     17.2. Tenant shall maintain the lines designating the parking spaces in good condition and
paint the same as often as may be necessary, so that they are easily discernable at all times;
resurface the parking areas as necessary to maintain them in good condition; paint any exterior
portions of the Buildings as necessary to maintain them in good condition; maintain the roof and
landscaping in good condition; maintain sightly screens, barricades or enclosures around any
waste or storage areas; and take all reasonable precautions to insure that the drainage
facilities of the roof are not clogged and are in good and operable condition at all times

     17.3. There shall be no abatement of Rent and no liability of Landlord by reason of any injury
to or interference with Tenant’s business arising from the Tenant’s making of any repairs,
alterations or improvements in or to any portion of the Premises, or in or to improvements,
fixtures, equipment and personal property therein (unless the necessity for any of the same is due
to Landlord’s gross negligence or willful misconduct).

     17.4. During the Term, Landlord shall, at Landlord’s sole cost and expense, be responsible for
any and all repairs and replacements to the foundation, slab, structural portions of the walls and
roof (not including the membrane), and structural steel aspects of the Buildings only.
Notwithstanding the foregoing, Tenant shall be responsible for, and shall pay, all costs and
expenses of such repair and replacement if such repair or replacement results from anything done by
Tenant or Tenant’s Agents or any breach by Tenant under this Lease. For purposes of clarity,
except as provided in the preceding sentence, Landlord shall not be responsible for any repairs or
replacements to the roof, the exterior walls or any other portions of the Premises. Except for the
foregoing and except as otherwise provided in this Lease, Landlord shall not be required to
maintain or make any repairs or replacements of any nature or description whatsoever to the
Premises unless the necessity for such repairs or replacements is due to Landlord’s gross

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negligence or willful misconduct. Except as otherwise provided in this Lease, Tenant hereby
expressly waives the right to make repairs at the expense of Landlord as provided for in any
Applicable Laws in effect at the time of execution of this Lease, or in any other Applicable Laws
that may hereafter be enacted, and waives its rights under Applicable Laws relating to a landlord’s
duty to maintain its premises in a tenantable condition. Notwithstanding the foregoing, if Tenant
shall fail, where such failure shall continue for a period of ten (10) days after written notice
thereof from Landlord to Tenant, to maintain or to commence and thereafter to proceed with
diligence to make any repair required of it pursuant to the terms of this Lease, Landlord, without
being under any obligation to do so and without thereby waiving such default by Tenant, may so
maintain or make such repair and may charge Tenant for the actual and documented costs thereof.
Any expense reasonably incurred by Landlord in connection with the making of such repairs may be
billed by Landlord to Tenant monthly or, at Landlord’s option, immediately, and shall be due and
payable within thirty (30) days after such billing.

     17.5. Landlord and Landlord’s agents shall have the right to enter upon the Premises or any
portion thereof in accordance with the terms and conditions of Section 30, for the purposes
of performing any repairs or maintenance Landlord is permitted or required to make pursuant to this
Lease, and of ascertaining the condition of the Premises or whether Tenant is observing and
performing Tenant’s obligations hereunder, all without unreasonable interference from Tenant or
Tenant’s Agents.

     17.6. Tenant shall, upon the expiration or sooner termination of the Term, surrender the
Premises to Landlord in as good of a condition as when received, ordinary wear and tear and damage
by casualty excepted. Landlord shall have no obligation to alter, remodel, improve, repair,
decorate or paint the Premises or any part thereof, other than pursuant to the terms and provisions
of this Lease.

     17.7. Tenant shall, at its sole cost and expense, perform the maintenance and repair
obligations of the Parcels 1&2 Owner (as defined in the REA) pursuant to, and in accordance with,
Section 4.1 of the REA.

     17.8. Landlord shall not be liable for any failure to make any repairs or to perform any
maintenance that is an obligation of Landlord unless such failure shall persist for an unreasonable
time after Tenant provides Landlord with written notice of the need of such repairs or maintenance.
Notwithstanding any provision in this Lease to the contrary, if Tenant provides notice to Landlord
of an event or circumstance which requires the action of Landlord with respect to the provision of
repairs as set forth in Section 17.4 of this Lease, and Landlord fails to provide such
action as required by the terms of this Lease within thirty (30) days after the date of such notice
from Tenant (or if such repair is reasonably expected to require longer than thirty (30) days to
complete, if Landlord shall fail to commence in a meaningful way such repair within said thirty
(30) day period and diligently prosecutes such repair to completion), then Tenant may provide
Landlord with a second written notice stating in bold and all caps 12 point font that “Landlord’s
failure to commence repair of the damage described below within ten (10) business days after
Landlord’s receipt of this second notice shall entitle Tenant to repair such damage.” If Landlord
does not commence in a meaningful way such repair within such ten (10) business day period, then
Tenant shall have the right to take such action, and if such action was required under the terms of
this Lease to be taken by Landlord, then Tenant shall be entitled to reimbursement by Landlord of
Tenant’s reasonable actual and documented costs and expenses in taking such action.
Notwithstanding the foregoing, in case of an emergency (where there is an imminent threat of injury
to persons or damage to property), Tenant shall only be required to provide Landlord five (5)
business days notice of the need to make such repairs stating in bold and all caps 12 point font
that “EMERGENCY: Landlord’s failure to commence its repairs of such
damage within five (5) business days after Landlord’s receipt of this notice shall entitle
Tenant to repair such damage,” and if Landlord does not commence in a meaningful way such repair
within such five (5) business day period, then Tenant shall have the right to take such action. In
the event Tenant takes such action, and such work will affect the building systems and equipment,
structural integrity of the Buildings or exterior appearance of the Buildings, Tenant shall use
Reno Construction for such work unless Reno Construction is unwilling or unable to perform such
work or its pricing is unreasonable, in which event Tenant may utilize the services of any other
qualified contractor which normally and regularly performs similar work in comparable first-class,
institutional quality, office buildings in the San Diego, California area whose pricing is
reasonable. If Tenant is entitled to reimbursement by Landlord of Tenant’s reasonable actual and
documented costs and expenses in taking any action pursuant to this

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Section 17.8, Tenant
shall so notify Landlord in writing (the “Reimbursement Notice”), which Reimbursement
Notice shall specify in detail such costs and expenses. Within thirty (30) days after Landlord’s
receipt of a Reimbursement Notice, Landlord shall pay to Tenant any undisputed portion of such
costs and expenses and shall notify Tenant in writing of those costs and expenses specified by
Tenant in the Reimbursement Notice which Landlord disputes (the “Disputed Amounts”) and the
reasons for such dispute. Any amounts which are not so identified by Landlord as Disputed Amounts
within said thirty (30) day period shall be considered to be undisputed. To the extent Landlord
fails to reimburse Tenant for the actual and documented costs and expenses specified in the
Reimbursement Notice within thirty (30) days after demand therefor, Tenant shall be entitled to
offset the sum of the amount of any undisputed portion of such costs and expenses against Basic
Annual Rent payable by Tenant under this Lease together with interest at the interest rate of eight
percent (8%) per annum from the date of expiration of said thirty (30) day period until the earlier
of (a) the date that Landlord reimburses Tenant such amount and (b) the date of offset (up to a
maximum offset each month of fifteen percent (15%) of the Basic Annual Rent payable for the
Premises) until the full pre-judgment offset amount (plus such interest) has been so offset. If
Tenant obtains a final judgment against Landlord for the Disputed Amount and if Landlord fails to
pay such judgment within thirty (30) days after the date such judgment is rendered, Tenant shall be
entitled to offset such judgment against Basic Annual Rent payable by Tenant under this Lease
together with interest at the interest rate of eight percent (8%) per annum from the date Landlord
failed to timely reimburse Tenant for such costs and expenses until the earlier of (y) the date
that Landlord has reimburses Tenant such amount and (z) the date of offset (up to a maximum offset
each month of fifteen percent (15%) of the Basic Annual Rent payable for the Premises) until the
full amount of such judgment (plus such interest) has been so offset. If Landlord obtains a final
judgment against Tenant for the Disputed Amount, Tenant shall pay to Landlord such judgment within
thirty (30) days after the date such judgment is rendered.

     17.9. This Article 17 relates to repairs and maintenance arising in the ordinary
course of operation of the Premises and any related facilities. In the event of fire, earthquake,
flood, vandalism, war, terrorism, natural disaster or similar cause of damage or destruction,
Article 21 shall apply in lieu of this Article 17.

     17.10. Notwithstanding anything above to the contrary, if during the Term, any portion of the
Premises which is Tenant’s responsibility hereunder to repair cannot be repaired other than at a
cost which is in excess of fifty percent (50%) of the cost of replacing such item(s), then such
item(s) shall be replaced by Tenant (subject to Landlord’s prior approval of the plans and
specifications and the cost of any such replacement), and Landlord shall reimburse Tenant a prorata
share of the cost thereof based upon a fraction, the numerator of which is the number of months of
the useful life of such replacement item beyond the expiration of the Term (including any Extended
Term, if applicable), and the denominator of which is the total number of months of the useful life
of such replacement (as such useful life is specified pursuant to Federal income tax regulations or
guidelines for depreciation thereof); provided, however, for purposes of
calculating the useful life of such replacement, the useful life of such replacement shall not
exceed seven (7) years from the date that such replacement is made.

18. Liens.

     18.1. Subject to the immediately succeeding sentence, Tenant shall keep the Premises free from
any liens arising out of work performed, materials furnished or obligations incurred by Tenant.
Tenant further covenants and agrees that any mechanic’s lien filed against the Premises for work
claimed to have been done for, or materials claimed to have been furnished to, shall be
discharged or bonded by Tenant within ten (10) days after the filing thereof, at Tenant’s sole
cost and expense.

     18.2. Should Tenant fail to discharge or bond against any lien of the nature described in
Section 18.1, Landlord may, at Landlord’s election, pay such claim or post a bond or
otherwise provide security to eliminate the lien as a claim against title, and Tenant shall
immediately reimburse Landlord for the actual, documented and reasonable costs thereof as
Additional Rent.

     18.3. In the event that Tenant leases or finances the acquisition of office equipment,
furnishings or other personal property of a removable nature utilized by Tenant in the operation of
Tenant’s business (which Tenant shall have the right to do), Tenant warrants that any Uniform
Commercial Code financing statement executed by Tenant shall, upon its face or by

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Exhibit thereto,
indicate that such financing statement is applicable only to removable personal property of Tenant
located within the Premises. In no event shall the address of the Premises be furnished on a
financing statement without qualifying language as to applicability of the lien only to removable
personal property located in an identified suite leased by Tenant. Should any holder of a
financing statement executed by Tenant record or place of record a financing statement that appears
to constitute a lien against any interest of Landlord, Tenant shall, within ten (10) days after
filing such financing statement, cause (a) a copy of the lender security agreement or other
documents to which the financing statement pertains to be furnished to Landlord to facilitate
Landlord’s ability to demonstrate that the lien of such financing statement is not applicable to
Landlord’s interest and (b) Tenant’s lender to amend such financing statement and any other
documents of record to clarify that any liens imposed thereby are not applicable to any interest of
Landlord in the Premises.

19. Indemnification and Exculpation.

     19.1. Subject to Section 19.5 below, Tenant agrees to indemnify, defend and save
Landlord harmless from and against any and all demands, claims, liabilities, losses, costs,
expenses, actions, causes of action, damages or judgments, and all reasonable expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred in
investigating or resisting the same (collectively, “Claims”) arising from injury or death
to any person or damage to any property occurring within or about the Premises arising: (a) out of
conditions that exist on the Execution Date; or (b) directly or indirectly out of Tenant’s or
Tenant’s employees’, agents’ or guests’ use or occupancy of the Premises or a breach or default by
Tenant in the performance of any of its obligations hereunder, unless caused solely by Landlord’s
willful misconduct or gross negligence.

     19.2. Notwithstanding any provision of Section 19.1 to the contrary, but subject to
Section 19.5 below, Landlord shall not be liable to Tenant for, and Tenant assumes all risk
of, damage to personal property or scientific research, including, without limitation, loss of
records kept by Tenant within the Premises and damage or losses caused by fire, electrical
malfunction, gas explosion or water damage of any type (including, without limitation, broken water
lines, malfunctioning fire sprinkler systems, roof leaks or stoppages of lines), unless any such
loss is due to Landlord’s gross negligence, willful misconduct and/or willful disregard of written
notice by Tenant of need for a repair that Landlord is responsible to make for an unreasonable
period of time. Tenant further waives any claim for injury to Tenant’s business or loss of income
relating to any such damage or destruction of personal property as described in this Section
19.2.

     19.3. Landlord shall not be liable for any damages arising from any act, omission or neglect
of any third party other than the gross negligence or willful misconduct of any of Landlord’s
officers, employees, agents, general partners, members, and Lenders (“Landlord Parties”).

     19.4. Tenant acknowledges that security devices and services, if any, while intended to deter
crime, may not in given instances prevent theft or other criminal acts. Landlord shall not be
liable for injuries or losses caused by criminal acts of third parties, and Tenant assumes the risk
that any security device or service may malfunction or otherwise be circumvented by a criminal. If
Tenant desires protection against such criminal acts, then Tenant shall, at Tenant’s sole cost and
expense, obtain appropriate insurance coverage. Notwithstanding any contrary provision of this
Lease, neither Landlord nor Tenant shall be liable to the other party for any consequential
damages, loss of business or profit for a breach or default under this Lease; provided that this
sentence shall not limit Landlord’s damages if, as a result of Tenant’s breach
of this Lease: (a) Landlord does not or is unable to lease the Premises to another party, or
(b) a third party is unable to occupy the Premises on the date specified in such third party’s
lease.

     19.5. Tenant shall not be required to indemnify and hold Landlord harmless from any Claim to
any person, property or entity resulting from the grossly negligent acts or omissions or willful
misconduct of the Landlord Parties in connection with the Landlord Parties’ activities in, on or
about the Premises, and Landlord hereby agrees to so indemnify and holds Tenant harmless from any
such Claims.

     19.6. The provisions of this Article 19 shall survive the expiration or earlier
termination of this Lease.

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20. Insurance; Waiver of Subrogation.

     20.1. Landlord shall maintain insurance for the Premises in amounts equal to full replacement
cost (exclusive of the costs of excavation, foundations and footings, and without reference to
depreciation taken by Landlord upon its books or tax returns) or such lesser coverage as Landlord
may elect, provided that such coverage shall not be less than ninety percent (90%) of such
full replacement cost or the amount of such insurance Landlord’s lender, mortgagee or beneficiary
(each, a “Lender”), if any, requires Landlord to maintain, providing protection against any
peril generally included within the classification “Fire and Extended Coverage,” together with
insurance against sprinkler damage (if applicable), vandalism and malicious mischief. Landlord,
subject to availability thereof, shall further insure, if Landlord deems it appropriate, coverage
against flood, environmental hazard, earthquake, loss or failure of building equipment, rental loss
during the period of repairs or rebuilding, workmen’s compensation insurance and fidelity bonds for
employees employed to perform services. Notwithstanding the foregoing, Landlord may, but shall not
be deemed required to, provide insurance for any improvements installed by Tenant or that are in
addition to the standard improvements customarily furnished by Landlord, without regard to whether
or not such are made a part of or are affixed to the Buildings. Any costs incurred by Landlord
pursuant to this Section 20.1 shall constitute a portion of Insurance Costs.

     20.2. In addition, Landlord shall carry public liability insurance with a single limit of not
less than Ten Million Dollars ($10,000,000) for death or bodily injury, or property damage with
respect to the Premises. Any costs incurred by Landlord pursuant to this Section 20.2
shall constitute a portion of Insurance Costs.

     20.3. Tenant shall, at its own cost and expense, procure and maintain in effect, beginning on
the Commencement Date or the date of occupancy, whichever occurs first, and continuing throughout
the Term (and occupancy by Tenant, if any, after termination of this Lease) comprehensive public
liability insurance with limits of not less than Five Million Dollars ($5,000,000) per occurrence
for death or bodily injury and not less than Two Million Dollars ($2,000,000) for property damage
with respect to the Premises.

     20.4. Tenant shall, at its sole cost and expense, procure and maintain in effect, beginning on
the Commencement Date or the date of occupancy, whichever occurs first, and continuing throughout
the Term all insurance required to be maintained by the Parcels 1&2 Owner (as defined in the REA)
in connection with the Property (as defined in the REA) pursuant to Section 6 of the REA.

     20.5. The insurance required to be purchased and maintained by Tenant pursuant to this Lease
shall show, as an additional insured in respect of the Premises, Landlord, BioMed Realty, L.P.,
BioMed Realty Trust, Inc., Tenant, any management company retained by Landlord to manage the
Premises, any ground lessor and any mortgagee of Landlord required to be named pursuant to its
mortgage documents. All public liability and property damage policies shall contain a provision
that Landlord, although named as an insured, nevertheless shall be entitled to recovery under said
policies for any loss occasioned to it, its servants, agents and employees by reason of the
negligence of Tenant. Said insurance shall be with companies having a rating of not less than
policyholder rating of A and financial category rating of at least Class XII in “Best’s Insurance
Guide.” Tenant shall obtain for Landlord from the insurance companies or cause the insurance
companies to furnish certificates of coverage to Landlord. No such policy shall be cancelable or
subject to reduction of coverage or other modification or cancellation except after thirty (30)
days’ prior written notice to Landlord from the insurer. All such policies
shall be written as primary policies, not contributing with and not in excess of the coverage
that Landlord may carry. Tenant’s policy may be a “blanket policy” that specifically provides that
the amount of insurance shall not be prejudiced by other losses covered by the policy. Tenant
shall, at least twenty (20) days prior to the expiration of such policies, furnish Landlord with
renewals or binders. Tenant agrees that if Tenant does not take out and maintain such insurance,
Landlord may (but shall not be required to) procure said insurance on Tenant’s behalf and at its
cost to be paid by Tenant as Additional Rent.

     20.6. Tenant assumes the risk of damage to any fixtures, goods, inventory, merchandise,
equipment and leasehold improvements, and Landlord shall not be liable for injury to Tenant’s
business or any loss of income therefrom, relative to such damage, all as more particularly set
forth within this Lease unless caused by Landlord’s gross negligence or willful

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misconduct. Tenant
shall, at Tenant’s sole cost and expense, carry such insurance as Tenant desires for Tenant’s
protection with respect to personal property of Tenant or business interruption.

     20.7. In each instance where Tenant’s insurance is to name additional insureds, Tenant shall,
upon Landlord’s written request, also designate and furnish certificates evidencing the same to (a)
any Lender of Landlord holding a security interest in the Premises or any portion thereof, (b) the
landlord under any lease whereunder Landlord is a tenant of the real property upon which the
Buildings are located if the interest of Landlord is or shall become that of a tenant under a
ground lease rather than that of a fee owner, and (c) any management company retained by Landlord
to manage the Premises.

     20.8. Landlord and Tenant each hereby waive any and all rights of recovery against the other
or against the officers, directors, employees, agents and representatives of the other on account
of loss or damage occasioned by such waiving party or its property or the property of others under
such waiving party’s control, in each case to the extent that such loss or damage is insured
against under any fire and extended coverage insurance policy that either Landlord or Tenant may
have in force at the time of such loss or damage. Such waivers shall continue so long as their
respective insurers so permit. Any termination of such a waiver shall be by written notice to the
other party, containing a description of the circumstances hereinafter set forth in this
Section 20.8. Landlord and Tenant, upon obtaining the policies of insurance required or
permitted under this Lease, shall give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease. If such policies shall not be
obtainable with such waiver or shall be so obtainable only at a premium over that chargeable
without such waiver, then the party seeking such policy shall notify the other of such conditions,
and the party so notified shall have ten (10) days thereafter to either (a) procure such insurance
with companies reasonably satisfactory to the other party or (b) agree to pay such additional
premium. If the parties do not accomplish either (a) or (b), then this Section 20.8 shall
have no effect during such time as such policies shall not be obtainable or the party in whose
favor a waiver of subrogation is desired refuses to pay the additional premium. If such policies
shall at any time be unobtainable, but shall be subsequently obtainable, then neither party shall
be subsequently liable for a failure to obtain such insurance until a reasonable time after
notification thereof by the other party. If the release of either Landlord or Tenant, as set forth
in the first sentence of this Section 20.8, shall contravene Applicable Laws, then the
liability of the party in question shall be deemed not released but shall be secondary to the other
party’s insurer.

21. Damage or Destruction.

     21.1. Subject to Section 21.2, In the event of a partial or complete destruction of
the Premises by fire or other perils, Landlord shall commence and proceed diligently with the work
of repair, reconstruction and restoration of the Premises, and this Lease shall continue in full
force and effect.

     21.2. Notwithstanding the terms of this Article 21, Landlord may elect not to rebuild
and/or restore the Premises and instead terminate this Lease by notifying Tenant in writing of such
termination within sixty (60) days after the date of damage, such notice to include a termination
date giving Tenant ninety (90) days to vacate the Premises, but Landlord may so elect only if the
Premises or the Buildings shall be damaged by fire or other casualty or cause or be subject to a
condition existing as a result of such a fire or other casualty or cause, and one or more of the
following conditions is present: (i) in the reasonable judgment of a contractor selected by
Landlord and reasonably approved by Tenant, repairs cannot reasonably be
completed within one hundred eighty (180) days of the date of damage (when such repairs are
made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the
Premises or the Buildings, or ground or underlying lessor with respect to the Premises or the
Buildings (a) shall require that the insurance proceeds or any portion thereof be used to retire
the mortgage debt due to an impairment of such holder’s collateral, and the remaining proceeds are
insufficient to repair the damage and as a result thereof the deficiency of insurance proceeds
exceeds the “Maximum Amount,” as that term is defined below, and Landlord elects not to commence
repair to the Premises within one (1) year of such damage or destruction, or (b) shall terminate
the ground or underlying lease, as the case may be; (iii) the dollar amount of the damage or
condition arising as a result of such damage which is not fully covered by Landlord’s insurance
policies (and that would not be fully covered by Landlord’s insurance policies if Landlord had
carried the coverage required under this Lease) including any deductible amount, is

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equal to or
greater than Two Hundred and Fifty Thousand Dollars ($250,000) (the “Maximum Amount”),
which Maximum Amount shall, as of the date of termination of this Lease, be equal to the product of
(a) the Maximum Amount and (b) a fraction, the numerator of which is the number of full months
remaining in the Term, or when appropriate the Option Term then applicable, as of the date of the
termination of this Lease, and the denominator of which is 180 (or, if applicable, 60 during an
Option Term) and Landlord elects not to commence repair to the Premises or Buildings within one (1)
year of such damage or destruction; or (iv) the damage occurs during the last twenty-four (24)
months of the Term, as such Term may have been extended by Tenant pursuant to this Lease;
provided, however, that if Landlord does not elect to terminate this Lease pursuant
to Landlord’s termination right as provided above, and the repairs of such damage cannot, in the
reasonable opinion of a contractor selected by Landlord and reasonably approved by Tenant, be
completed within twelve (12) months after being commenced, Tenant may elect, not later than ten
(10) business days after the date of such damage, to terminate this Lease by written notice to
Landlord effective as of the date specified in the notice. At any time, from time to time, after
the date occurring thirty (30) days after the date of the damage, but in no event more than once
every forty-five (45) days, Tenant may request that Landlord provide Tenant with a certificate from
the architect or contractor described above setting forth such architect’s or contractors’
reasonable opinion of the date of completion of the repairs and Landlord shall respond to such
request within fifteen (15) business days.

     21.3. Landlord shall give written notice to Tenant of its election not to repair, reconstruct
or restore the Premises within sixty (60) days following the date of damage or destruction.

     21.4. Upon any termination of this Lease under any of the provisions of this Article
21, the parties shall be released thereby without further obligation to the other from the date
possession of the Premises is surrendered to Landlord, except with regard to (a) items occurring
prior to the damage or destruction and (b) provisions of this Lease that, by their express terms,
survive the expiration or earlier termination hereof.

     21.5. In the event of repair, reconstruction and restoration as provided in this Article
21, all Rent to be paid by Tenant under this Lease shall be abated proportionately based on the
extent to which Tenant’s use of the Premises is impaired during the period of such repair,
reconstruction or restoration, unless Landlord provides Tenant with other space during the period
of repair that, in Tenant’s reasonable discretion, is suitable for the temporary conduct of
Tenant’s business; provided, however, that the amount of such abatement shall be
reduced by the proceeds of lost rental income insurance actually received by Tenant with respect to
the Premises.

     21.6. Notwithstanding anything to the contrary contained in this Article 21, should
Landlord be delayed or prevented from completing the repair, reconstruction or restoration of the
damage or destruction to the Premises after the occurrence of such damage or destruction by delays
resulting from acts of tenants, acts of God; acts of terrorism; adverse weather conditions; war;
invasion; insurrection; acts of a public enemy; terrorism; riot; mob violence; civil commotion;
sabotage; labor disputes; general shortage of labor, materials, facilities, equipment or supplies
on the open market; delay in transportation; delays caused by new, or changes to existing, laws,
rules, regulations or orders of any Governmental Authority; moratorium or other governmental
action; inability to obtain permits or approvals, including, without limitation, city and public
utility approvals beyond the time periods that generally prevail for obtaining such permits and
approvals; the acts or inaction of the contractor and subcontractors, if any; or any other cause
beyond the reasonable control of Landlord, financial ability excepted, whether
similar or dissimilar to the foregoing (collectively, “Force Majeure”), then the time
for Landlord to commence or complete repairs shall be extended on a day-for-day basis.

     21.7. If Landlord is obligated to or elects to repair, reconstruct or restore as herein
provided, then Landlord shall be obligated to make such repair, reconstruction or restoration only
with regard to those portions of the Premises that were originally provided at Landlord’s expense.
The repair, reconstruction or restoration of improvements not originally provided by Landlord or at
Landlord’s expense shall be the obligation of Tenant. In the event Tenant has elected to upgrade
certain improvements, Landlord shall, upon the need for replacement due to an insured loss,
construct the improvements to the standard that existed prior to such damage, unless Tenant again
elects to upgrade such improvements and pay any incremental costs related thereto, except to the
extent that excess insurance proceeds, if received, are adequate to provide
such upgrades, in
addition to providing for basic repair, reconstruction and restoration of the Premises.

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     21.8. In addition to its termination right in Section 21.2 above, Tenant shall have
the right to terminate this Lease if any damage to the Buildings or Premises: (a) occurs during the
last twelve (12) months of the Term of this Lease (including the last twelve (12) months of any
Extended Term, if applicable); (b) Tenant is unable to occupy more than twenty-five percent (25%)
of the Premises; and (c) in the reasonable judgment of a contractor selected by Landlord and
reasonably approved by Tenant, such repairs cannot reasonably be completed within twenty-five
percent (25%) of the remaining term of this Lease (including any Extended Term, if applicable).

22. Eminent Domain.

     22.1. Total Taking – Termination. In the event the whole of the Premises, or such
part thereof so that reconstruction of the Premises will not result in the Premises being
reasonably suitable (as reasonably determined by Landlord and Tenant) for Tenant’s continued
occupancy for the uses and purposes permitted by this Lease, shall be taken for any public or
quasi-public purpose by any lawful power or authority by exercise of the right of appropriation,
condemnation or eminent domain, or sold to prevent such taking, Tenant or Landlord may terminate
this Lease effective as of the date possession is required to be surrendered to said authority.

     22.2. Partial Taking. In the event of a partial taking of the Premises, or of drives,
walkways or parking areas serving the Premises for any public or quasi-public purpose by any lawful
power or authority by exercise of right of appropriation, condemnation, or eminent domain, or sold
to prevent such taking, then, without regard to whether any portion of the Premises occupied by
Tenant was so taken, Landlord may elect to terminate this Lease as of such taking if such taking
is, in Landlord’s sole opinion, of a material nature such as to make it uneconomical to continue
use of the unappropriated portion for purposes of renting office or laboratory space.

     22.3. Tenant shall be entitled to any award that is specifically awarded as compensation for
(a) the taking of Tenant’s personal property that was installed at Tenant’s expense and (b) the
costs of Tenant moving to a new location. Except as set forth in this Article 22, any
award for such taking shall be the property of Landlord.

     22.4. If, upon any taking of the nature described in Sections 22.1 and 22.2,
this Lease continues in effect, then (a) Landlord shall promptly proceed to restore the Premises to
substantially their same condition prior to such partial taking and this Lease shall, as to the
part so taken terminate as of the date that possession of such part of the Premises is taken and
the Basic Annual Rent shall be reduced in the same proportion that the floor area of the portion of
the Buildings so taken (less any addition thereto by reason of any reconstruction) bears to the
original floor area of the Buildings, and (b) in the event of a partial taking of the Diversified
Space (as defined in the Parcel 3 Lease), (i) Tenant agrees to sublease to Diversified, at no cost
to Diversified, up to 6,600 rentable square feet in the New Parcel 3 Building or in the Buildings
in accordance with Diversified’s rights under Article 20 of the Diversified Lease, (ii)
Tenant shall be entitled to an abatement of (1) fifty percent (50%) of the Expansion Premises Basic
Annual Rent (as defined in the Parcel 3 Lease) for the portion of the Expansion Premises (as
defined in the Parcel 3 Lease) (if any) occupied by Diversified, and (2) fifty percent (50%) of the
Basic Annual Rent for the portion of the Premises (if any) occupied by Diversified, (iii) Landlord
shall pay all costs associated with the relocation of Diversified, including, but not limited to,
costs of tenant improvements and moving costs, and (iv) Tenant shall not be entitled to an
abatement of any of the operating expenses, including Taxes, Utility Costs, Insurance Costs, and
all other utility and insurance costs and expenses in connection with the portion of the Expansion
Premises or the Premises occupied by Diversified.

23. Defaults and Remedies.

     23.1. Late payment by Tenant to Landlord of Rent and other sums due shall cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult
and impracticable to ascertain. Such costs include, but are not limited to, processing and
accounting charges and late charges that may be imposed on Landlord by the terms of any mortgage or
trust deed covering the Premises. Therefore, if any installment of Rent

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due from Tenant is not
received by Landlord within five (5) days after written notice that such payment is due, Tenant
shall pay to Landlord an additional sum of three percent (3%) of the overdue Rent as a late charge.
The parties agree that this late charge represents a fair and reasonable estimate of the costs
that Landlord shall incur by reason of late payment by Tenant. Notwithstanding the foregoing,
Landlord shall waive the imposition of such late charge for the first late payment of Rent due
hereunder in any calendar year of the Term. In addition to the late charge, Rent not paid when due
shall bear interest from the fifth (5th) day after the date due until paid at the lesser of (a)
twelve percent (12%) per annum or (b) the maximum rate permitted by Applicable Laws.

     23.2. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent payment
herein stipulated shall be deemed to be other than on account of the Rent, 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 or in equity or at law. If a dispute shall arise as to any amount or sum of money to be paid
by Tenant to Landlord hereunder, Tenant shall have the right to make payment “under protest,” such
payment shall not be regarded as a voluntary payment, and there shall survive the right on the part
of Tenant to institute suit for recovery of the payment paid under protest.

     23.3. If Tenant fails to pay any sum of money (other than Basic Annual Rent) required to be
paid by it hereunder, or shall fail to perform any other act on its part to be performed hereunder,
Landlord may, without waiving or releasing Tenant from any obligations of Tenant, but shall not be
obligated to, make such payment or perform such act; provided that (a) such failure by
Tenant continues beyond all applicable notice and cure periods after Landlord delivers notice to
Tenant demanding performance by Tenant; or (b) such failure by Tenant reasonably could be expected
to result in a violation of Applicable Laws, damage to property or injury to any person, or the
cancellation of an insurance policy maintained by Landlord. Notwithstanding the foregoing, in the
event of an emergency, Landlord shall have the right to enter the Premises and act in accordance
with its rights as provided elsewhere in this Lease. Tenant shall pay to Landlord as Additional
Rent all sums so paid or incurred by Landlord, together with interest thereon, from the date such
sums were paid or incurred, at the annual rate equal to twelve percent (12%) per annum or highest
rate permitted by Applicable Laws, whichever is less.

     23.4. The occurrence of any one or more of the following events shall constitute a
“Default” hereunder by Tenant:

          23.4.1 The failure by Tenant to make any payment of Rent, as and when due, where such failure
shall continue for a period of five (5) days after written notice thereof from Landlord to Tenant;

          23.4.2 The failure by Tenant to observe or perform any obligation or covenant contained herein
to be performed by Tenant (other than described in Subsections 23.4.1 and 26.4.2),
where such failure shall continue for a period of ten (10) business days after written notice
thereof from Landlord to Tenant; provided that, if the nature of Tenant’s default is such
that it reasonably requires more than ten (10) business days to cure, Tenant shall not be deemed to
be in default if Tenant shall commence such cure within said ten (10) business day period and
thereafter diligently prosecute the same to completion;

          23.4.3 Tenant makes an assignment for the benefit of creditors;

          23.4.4 A receiver, trustee or custodian is appointed to or does take title, possession or
control of all or substantially all of Tenant’s assets;

          23.4.5 Tenant files a voluntary petition under the United States Bankruptcy Code or any
successor statute (the “Bankruptcy Code”) or an order for relief is entered against Tenant
pursuant to a voluntary or involuntary proceeding commenced under any chapter of the Bankruptcy
Code;

          23.4.6 Any involuntary petition if filed against Tenant under any chapter of the Bankruptcy
Code and is not dismissed within sixty (60) days;

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          23.4.7 Failure to deliver an estoppel certificate in accordance with Article 27;

          23.4.8 The occurrence of a monetary or material non-monetary default under the Parcel 3 Lease;

          23.4.9 The occurrence of any Transfer that is not in compliance with the provisions of
Article 24, where such failure shall continue for a period of ten (10) days after written
notice thereof from Landlord to Tenant; or

          23.4.10 Tenant’s interest in this Lease is attached, executed upon or otherwise judicially
seized and such action is not released within one hundred twenty (120) days of the action.

     No notice given above shall be deemed a forfeiture or a termination of this Lease unless
Landlord elects otherwise in such notice.

     23.5. In the event of a Default by Tenant, and at any time thereafter, with or without notice
or demand and without limiting Landlord in the exercise of any right or remedy that Landlord may
have, Landlord shall be entitled to terminate Tenant’s right to possession of the Premises by any
lawful means, in which case this Lease shall terminate and Tenant shall immediately thereafter,
surrender possession of the Premises to Landlord. In such event, Landlord shall have the right to
re-enter and remove all persons and property, and such property may be removed and stored in a
public warehouse or elsewhere at the cost and for the account of Tenant, all without service of
notice or resort to legal process and without being deemed guilty of trespass or becoming liable
for any loss or damage that may be occasioned thereby. In the event that Landlord shall elect to
so terminate this Lease, then Landlord shall be entitled to recover from Tenant all damages
incurred by Landlord by reason of Tenant’s default, including, without limitation:

          23.5.1 The worth at the time of award of the unpaid Rent that had been earned at the time of
termination; plus

          23.5.2 The worth at the time of award of the amount by which the unpaid Rent that would have
been earned during the period commencing with termination of this Lease and ending at the time of
award exceeds that portion of the loss of Landlord’s rental income from the Premises that Tenant
proves could have been reasonably avoided; plus

          23.5.3 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 the loss of Landlord’s rental income from
the Premises that Tenant proves could be reasonably avoided; plus

          23.5.4 Any other amount necessary to compensate Landlord for all the detriment caused by
Tenant’s failure to perform its obligations under this Lease or that in the ordinary course of
things would be likely to result therefrom, including, without limitation, the cost of restoring
the Premises to the condition required under the terms of this Lease.

As used in Subsections 23.5.1 and 23.5.2, “worth at the time of award” shall be
computed by allowing interest at the rate specified in Section 23.1. As used in
Subsection 23.5.3 above, the “worth at the time of the award” shall be computed by taking
the present value of such amount, using the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award plus one (1) percentage point.

     23.6. In addition to any other remedies available to Landlord at law or in equity and under
this Lease, Landlord shall have the remedy described in California Civil Code Section 1951.4
(Landlord may continue this Lease in effect after Tenant’s Default and abandonment and recover Rent
as it becomes due, provided Tenant has the right to sublet or assign, subject only to reasonable
limitations). In addition, Landlord shall not be liable in any way whatsoever for its failure or
refusal to relet the Premises. For purposes of this Section 23.6, the following acts by
Landlord will not constitute the termination of Tenant’s right to possession of the Premises:

          23.6.1 Acts of maintenance or preservation or efforts to relet the Premises, including, but
not limited to, alterations, remodeling, redecorating, repairs, replacements and/or
painting as
Landlord shall consider advisable for the purpose of reletting the Premises or any part thereof, or

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          23.6.2 The appointment of a receiver upon the initiative of Landlord to protect Landlord’s
interest under this Lease or in the Premises.

Notwithstanding the foregoing, in the event of a Default by Tenant, Landlord may elect at any time
to terminate this Lease and to recover damages to which Landlord is entitled.

     23.7. In the event Landlord elects to terminate this Lease and relet the Premises, Landlord
may execute any new lease in its own name. Tenant hereunder shall have no right or authority
whatsoever to collect any Rent from such tenant. The proceeds of any such reletting shall be
applied as follows:

          23.7.1 First, to the payment of any indebtedness other than Rent due hereunder from Tenant to
Landlord, including, without limitation, storage charges or brokerage commissions owing from Tenant
to Landlord as the result of such reletting;

          23.7.2 Second, to the payment of the costs and expenses of reletting the Premises, including
(a) alterations and repairs that Landlord deems reasonably necessary and advisable and (b)
reasonable attorneys’ fees, charges and disbursements incurred by Landlord in connection with the
retaking of the Premises and such reletting;

          23.7.3 Third, to the payment of Rent and other charges due and unpaid hereunder; and

          23.7.4 Fourth, to the payment of future Rent and other damages payable by Tenant under this
Lease.

     23.8. All of Landlord’s rights, options and remedies hereunder shall be construed and held to
be nonexclusive and cumulative. Landlord shall have the right to pursue any one or all of such
remedies, or any other remedy or relief that may be provided by Applicable Laws, whether or not
stated in this Lease. No waiver of any default of Tenant hereunder shall be implied from any
acceptance by Landlord of any Rent or other payments due hereunder or any omission by Landlord to
take any action on account of such default if such default persists or is repeated, and no express
waiver shall affect defaults other than as specified in said waiver.

     23.9. Landlord’s termination of (a) this Lease or (b) Tenant’s right to possession of the
Premises shall not relieve Tenant of any liability to Landlord that has previously accrued or that
shall arise based upon events that occurred prior to the later to occur of (i) the date of Lease
termination or (ii) the date Tenant surrenders possession of the Premises.

     23.10. In the event of a Default by Tenant hereunder, to the fullest extent required by
Applicable Laws (to the extent such Applicable Laws cannot be modified by contract), Landlord shall
use commercially reasonable efforts to mitigate its damages.

     23.11. To the extent permitted by Applicable Laws, Tenant waives any and all rights of
redemption granted by or under any present or future Applicable Laws if Tenant is evicted or
dispossessed for any cause, or if Landlord obtains possession of the Premises due to Tenant’s
default hereunder or otherwise.

     23.12. Landlord shall not be in default under this Lease unless Landlord fails to perform
obligations required of Landlord within a reasonable time, but in no event shall such failure
continue for more than thirty (30) days after written notice from Tenant specifying the nature
of Landlord’s failure; provided, however, that if the nature of Landlord’s
obligation is such that more than thirty (30) days are required for its performance, then Landlord
shall not be in default if Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion. In the event of any default by Landlord
(beyond the expiration of all applicable notice and cure periods), Tenant may exercise any rights
and remedies available at law or in equity.

     23.13. In the event of any default by Landlord, Tenant shall give notice by registered or
certified mail to any (a) beneficiary of a deed of trust or (b) mortgagee under a mortgage covering
the Premises or any portion thereof and to any landlord of any lease of land upon or

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within which
the Premises are located, and shall offer such beneficiary, mortgagee or landlord a reasonable
opportunity to cure the default, including time to obtain possession of the Premises by power of
sale or a judicial action if such should prove necessary to effect a cure; provided that Landlord
shall furnish to Tenant in writing, upon written request by Tenant, the names and addresses of all
such persons who are to receive such notices; provided, however, in no event shall
such reasonable opportunity to cure exceed an additional sixty (60) days within which to cure or
correct such default (or if such default cannot be cured or corrected within that time, then such
additional time as may be necessary if such mortgagee has commenced within such sixty (60) day
period and is diligently pursuing the remedies or steps necessary to cure or correct such default).

24. Assignment or Subletting.

     24.1. Except as hereinafter expressly permitted, Tenant shall not, either voluntarily or by
operation of Applicable Laws, directly or indirectly sell, hypothecate, assign, pledge, encumber or
otherwise transfer this Lease, or sublet the Premises or any part hereof (each, a
“Transfer”), without Landlord’s prior written consent, which consent Landlord may not
unreasonably withhold, condition or delay. Tenant shall have the right to Transfer without
Landlord’s prior written consent the Premises or any portion thereof to any person or entity that:
(a) directly, or indirectly through one or more intermediaries, (i) controls, is controlled by, or
is under common control with Tenant, (ii) acquires all or substantially all of the assets of
Tenant, or (iii) is the resulting entity of a merger or consolidation of Tenant with another
entity; and (b) has a net worth equal to Two Hundred Million Dollars ($200,000,000) (each, a
“Tenant’s Affiliate”), provided (1) Tenant shall notify Landlord in writing at least ten
(10) days prior to the effectiveness of such Transfer to Tenant’s Affiliate (an “Exempt
Transfer”); and (2) Tenant remains obligated under this Lease. For purposes of Exempt
Transfers, “control” requires both (y) owning (directly or indirectly) more than fifty-one percent
(51%) of the stock or other equity interests of another person and (z) possessing, directly or
indirectly, the power to direct or cause the direction of the management and policies of such
person.

     24.2. In the event Tenant desires to effect a Transfer, then, at least twenty (20) business
days but not more than one hundred twenty (120) days prior to the date when Tenant desires the
assignment or sublease to be effective (the “Transfer Date”), Tenant shall provide written
notice to Landlord (the “Transfer Notice”) containing information (including references)
concerning the character of the proposed transferee, assignee or sublessee; the Transfer Date; any
ownership or commercial relationship between Tenant and the proposed transferee, assignee or
sublessee; and the consideration and all other material terms and conditions of the proposed
Transfer; and evidence respecting the relevant business experience and financial responsibility and
status of the proposed transferee, assignee or sublessee, all in such detail as Landlord shall
reasonably require (the “Transfer Information”). Tenant shall also tender to Landlord the
actual, documented and reasonable attorneys’ fees and other costs or overhead expenses incurred by
Landlord in reviewing Tenant’s request for such Transfer (not to exceed Two Thousand Five Hundred
Dollars ($2,500.00) in the aggregate per Transfer request).

     24.3. Landlord, in determining whether consent should be given to a proposed Transfer, may
give consideration to (a) the financial strength of such assignee (notwithstanding Tenant
remaining liable for Tenant’s performance), and (b) any change in use that such transferee,
assignee or sublessee proposes to make in the use of the Premises. In no event shall Landlord be
deemed to be unreasonable for declining to consent to a Transfer to a transferee, assignee or
sublessee of lacking financial qualifications or seeking a change in the Permitted Use, or
jeopardizing directly or indirectly the status of Landlord or any of Landlord’s affiliates as a
Real Estate Investment Trust under the Internal Revenue Code of 1986 (the “Code”).
Notwithstanding anything contained in this Lease to the contrary, (w) no Transfer shall be
consummated on any basis such that the rental or other amounts to be paid by the occupant,
assignee, manager or other transferee thereunder would be based, in whole or in part, on the
income or profits derived by the business activities of such occupant, assignee, manager or other
transferee; (x) Tenant shall not furnish or render any services to an occupant, assignee, manager
or other transferee with respect to whom transfer consideration is required to be paid, or manage
or operate the Premises or any capital additions so transferred, with respect to which transfer
consideration is being paid; (y) Tenant shall not consummate a Transfer with any person in which
Landlord owns an interest, directly or indirectly (by applying constructive ownership rules set
forth in Section 856(d)(5) of the Code); and (z) Tenant shall not consummate a Transfer with any
person or in any manner that could cause any portion of the amounts received by Landlord

25

 

pursuant
to this Lease or any sublease, license or other arrangement for the right to use, occupy or possess
any portion of the Premises to fail to qualify as “rents from real property” within the meaning of
Section 856(d) of the Code, or any similar or successor provision thereto or which could cause any
other income of Landlord to fail to qualify as income described in Section 856(c)(2) of the Code.
Landlord shall respond to Tenant’s proposed Transfer within twenty (20) days after receipt of
Tenant’s Transfer request. If Landlord fails to respond within such twenty (20) day period, then
Tenant shall provide Landlord with a second written notice stating in bold and all caps 12 point
font that “Landlord’s failure to respond to Tenant’s Transfer request within five (5) days after
Landlord’s receipt of this second notice shall be deemed approval by Landlord,” and if Landlord
does not respond within such five (5) day period, then Landlord shall be deemed to have approved
such Transfer request.

     24.4. As conditions precedent to Tenant subleasing the Premises or to Landlord considering a
request by Tenant to Tenant’s transfer of rights or sharing of the Premises, Landlord may require
any or all of the following:

          24.4.1 Tenant shall remain fully liable under this Lease during the unexpired Term;

          24.4.2 Tenant shall provide Landlord with the Transfer Information;

          24.4.3 If Tenant’s transfer of rights or sharing of the Premises provides for the receipt by,
on behalf of or on account of Tenant of any consideration of any kind whatsoever (including,
without limitation, a premium rental for a sublease or lump sum payment for an assignment) in
excess of the rental and other charges due to Landlord under this Lease, Tenant shall pay fifty
percent (50%) of all of such excess to Landlord, after deductions for tenant improvement allowances
actually provided by Tenant, alterations (including hard and soft costs), cash and other monetary
concessions, marketing expenses, free rent, brokerage commissions and the actual documented and
reasonable attorneys fees necessarily incurred in negotiating such sublease or assignment. If said
consideration consists of cash paid to Tenant, payment to Landlord shall be made upon receipt by
Tenant of such cash payment;

          24.4.4 The proposed transferee, assignee or sublessee shall agree that, in the event Landlord
gives such proposed transferee, assignee or sublessee notice that Tenant is in default under this
Lease, such proposed transferee, assignee or sublessee shall thereafter make all payments otherwise
due Tenant directly to Landlord, which payments shall be received by Landlord without any liability
being incurred by Landlord, except to credit such payment against those due by Tenant under this
Lease, and any such proposed transferee, assignee or sublessee shall agree to attorn to Landlord or
its successors and assigns should this Lease be terminated for any reason; provided,
however, that in no event shall Landlord or its Lenders, successors or assigns be obligated
to accept such attornment;

          24.4.5 Any such consent to Transfer shall be effected on Landlord’s forms, subject to changes
by Tenant that are satisfactory to Landlord in its reasonable discretion;

          24.4.6 Tenant shall not then be in default hereunder (beyond the expiration of all applicable
notice and cure periods) in any respect;

          24.4.7 Such proposed transferee, assignee or sublessee’s use of the Premises shall not be
inconsistent with the Permitted Use;

          24.4.8 Landlord shall not be bound by any provision of any agreement pertaining to the
Transfer, except for Landlord’s written consent to the same;

          24.4.9 Tenant shall pay all transfer and other taxes (including interest and penalties)
assessed or payable for any Transfer;

          24.4.10 Landlord’s consent (or waiver of its rights) for any Transfer shall not waive
Landlord’s right to consent to any later Transfer;

          24.4.11 Tenant shall deliver to Landlord one executed copy of any and all written instruments
evidencing the Transfer; and

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          24.4.12 A list of Hazardous Materials (as defined in Section 36.6 below), certified by
the proposed transferee, assignee or sublessee to be true and correct, that the proposed
transferee, assignee or sublessee intends to use or store in the Premises. Additionally, Tenant
shall deliver to Landlord, on or before the date any proposed transferee, assignee or sublessee
takes occupancy of the Premises, all of the items relating to Hazardous Materials of such proposed
transferee, assignee or sublessee as described in Section 36.2.

     24.5. Any Transfer that is not in compliance with the provisions of this Article 24
shall be void and constitute a “Default” hereunder.

     24.6. The consent by Landlord to a Transfer shall not relieve Tenant or proposed transferee,
assignee or sublessee from obtaining Landlord’s consent to any further Transfer, nor shall it
release Tenant or any proposed transferee, assignee or sublessee of Tenant from full and primary
liability under this Lease.

     24.7. Notwithstanding any Transfer, Tenant shall remain fully and primarily liable for the
payment of all Rent and other sums due or to become due hereunder, and for the full performance of
all other terms, conditions and covenants to be kept and performed by Tenant. The acceptance of
Rent or any other sum due hereunder, or the acceptance of performance of any other term, covenant
or condition thereof, from any person or entity other than Tenant shall not be deemed a waiver of
any of the provisions of this Lease or a consent to any Transfer.

     24.8. Licenses to Business Affiliates. Notwithstanding any contrary provision of this
Article 24, the original Tenant named hereunder (but not any assignee or subtenant) shall
have the right, without the receipt of Landlord’s consent, but on prior written notice to Landlord,
to license (but not sublease) up to an aggregate of up to ten percent (10%) of the rentable square
feet of the Premises to individuals or entities (each, a “Business Affiliate”), which
license to a Business Affiliate shall be on and subject to all of the following conditions: (i)
Tenant shall have a direct contractual business relationship (relating to a primary business of
Tenant conducted in the Premises and other than Business Affiliate’s use of the Premises) with each
such Business Affiliate; (ii) each such Business Affiliate shall be of a character and reputation
consistent with the quality of the Buildings; (iii) each such license shall clearly specify that it
is only a contract right and that the Business Affiliate is not a subtenant and has no interest in
real property; (iv) each such Business Affiliate’s use of the Premises is in a manner consistent
with the Permitted Use; (v) no demising walls or separate entrances shall be constructed in the
Premises to accommodate any such license; (vi) the term of such license shall not exceed six (6)
months; and (vii) the licensee shall pay no rent or other compensation to Tenant in respect of such
license. No such license shall relieve Tenant from any liability under this Lease.

     24.9. If Tenant sublets the Premises or any portion thereof, Tenant hereby immediately and
irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent
from any such subletting, and appoints Landlord as assignee and attorney-in-fact for Tenant, and
Landlord (or a receiver for Tenant appointed on Landlord’s application) may collect such rent and
apply it toward Tenant’s obligations under this Lease; provided that, until the occurrence
of a Default (beyond the expiration at all applicable notice and cure periods) by Tenant, Tenant
shall have the right to collect such rent.

25. Attorneys’ Fees. If either party commences an action against the other party
arising out of or in connection with this Lease, then the substantially prevailing party shall be
entitled to have and
recover from the other party reasonable attorneys’ fees, charges and disbursements and costs
of suit.

26. Definition of Landlord. With regard to obligations imposed upon Landlord pursuant
to this Lease, the term “Landlord,” as used in this Lease, shall refer only to Landlord or
Landlord’s then-current successor-in-interest. In the event of any transfer, assignment or
conveyance of Landlord’s interest in this Lease or in Landlord’s fee title to or leasehold interest
in the Property, as applicable, Landlord herein named (and in case of any subsequent transfers or
conveyances, the subsequent Landlord) shall be automatically freed and relieved, from and after the
date of such transfer, assignment or conveyance, from all liability for the performance of any
covenants or obligations contained in this Lease thereafter to be performed by Landlord and,
without further agreement, the transferee, assignee or conveyee of Landlord’s in this Lease or in
Landlord’s fee title to or leasehold interest in the Property, as applicable, shall be deemed to
have assumed and agreed to observe and perform any and all covenants and obligations of Landlord

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hereunder during the tenure of its interest in this Lease or the Property. Landlord or any
subsequent Landlord may transfer its interest in the Premises or this Lease without Tenant’s
consent.

27. Estoppel Certificate. Tenant shall, within fifteen (15) days of receipt of
written notice from Landlord, execute, acknowledge and deliver a statement in writing substantially
in the form attached to this Lease as Exhibit C, or on any other commercially reasonable form
reasonably requested by a proposed Lender or purchaser, (a) certifying that this Lease is
unmodified and in full force and effect (or, if modified, stating the nature of such modification
and certifying that this Lease as so modified is in full force and effect) and the dates to which
rental and other charges are paid in advance, if any, (b) acknowledging that there are not, to
Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such
defaults if any are claimed, and (c) setting forth such further information with respect to this
Lease or the Premises as may be reasonably requested thereon. Any such statement may be relied
upon by any prospective purchaser or encumbrancer of all or any portion of the real property of
which the Premises are a part. Tenant’s failure to deliver such statement within such the
prescribed time shall, at Landlord’s option, constitute a Default under this Lease, and, in any
event, shall be binding upon Tenant that this Lease is in full force and effect and without
modification except as may be represented by Landlord in any certificate prepared by Landlord and
delivered to Tenant for execution and that all other statements set forth in such certificate are
true and correct. Landlord shall, within fifteen (15) days of receipt of written notice from
Tenant but in no event more than once every twelve (12) months, provide to Tenant an estoppel
certificate signed by Landlord, (a) certifying that this Lease is unmodified and in full force and
effect (or, if modified, stating the nature of such modification and certifying that this Lease as
so modified is in full force and effect) and the dates to which rental and other charges are paid
in advance, if any, and (b) acknowledging that there are not, to Landlord’s knowledge, any uncured
defaults on the part of Tenant hereunder, or specifying such defaults if any are claimed.

28. Joint and Several Obligations. If more than one person or entity executes this
Lease as Tenant, then:

     28.1. Each of them is jointly and severally liable for the keeping, observing and performing
of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept,
observed or performed by Tenant; and

     28.2. The term “Tenant” as used in this Lease shall mean and include each of them,
jointly and severally. The act of, notice from, notice to, refund to, or signature of any one or
more of them with respect to the tenancy under this Lease, including, without limitation, any
renewal, extension, expiration, termination or modification of this Lease, shall be binding upon
each and all of the persons executing this Lease as Tenant with the same force and effect as if
each and all of them had so acted, so given or received such notice or refund, or so signed.

29. Limitation of Landlord’s Liability.

     29.1. If Landlord is in default under this Lease and, as a consequence, Tenant recovers a
monetary judgment against Landlord, the judgment shall be satisfied only out of (a) the proceeds of
sale received on execution of the judgment and levy against the right, title and interest of
Landlord in the Premises, (b) rent or other income from such real property receivable by Landlord,
(c) the consideration received by Landlord from the sale, financing, refinancing or other
disposition of all or any part of Landlord’s right, title or interest in the Premises and (d) any
casualty insurance proceeds which Landlord receives for damage to the Premises.

     29.2. Landlord shall not be personally liable for any deficiency under this Lease. If
Landlord is a partnership or joint venture, then the partners of such partnership shall not be
personally liable for Landlord’s obligations under this Lease, and no partner of Landlord shall be
sued or named as a party in any suit or action, and service of process shall not be made against
any partner of Landlord except as may be necessary to secure jurisdiction of the partnership or
joint venture. If Landlord is a corporation, then the shareholders, directors, officers, employees
and agents of such corporation shall not be personally liable for

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Landlord’s obligations under this
Lease, and no shareholder, director, officer, employee or agent of Landlord shall be sued or named
as a party in any suit or action, and service of process shall not be made against any shareholder,
director, officer, employee or agent of Landlord. If Landlord is a limited liability company, then
the members of such limited liability company shall not be personally liable for Landlord’s
obligations under this Lease, and no member of Landlord shall be sued or named as a party in any
suit or action, and service of process shall not be made against any member of Landlord except as
may be necessary to secure jurisdiction of the limited liability company. No partner, shareholder,
director, employee, member or agent of Landlord shall be required to answer or otherwise plead to
any service of process, and no judgment shall be taken or writ of execution levied against any
partner, shareholder, director, employee or agent of Landlord.

     29.3. If Tenant is a partnership or joint venture, then the partners of such partnership
shall not be personally liable for Tenant’s obligations under this Lease, and no partner of Tenant
shall be sued or named as a party in any suit or action, and service of process shall not be made
against any partner of Tenant except as may be necessary to secure jurisdiction of the partnership
or joint venture. If Tenant is a corporation, then the shareholders, directors, officers,
employees and agents of such corporation shall not be personally liable for Tenant’s obligations
under this Lease, and no shareholder, director, officer, employee or agent of Tenant shall be sued
or named as a party in any suit or action, and service of process shall not be made against any
shareholder, director, officer, employee or agent of Tenant. If Tenant is a limited liability
company, then the members of such limited liability company shall not be personally liable for
Tenant’s obligations under this Lease, and no member of Tenant shall be sued or named as a party
in any suit or action, and service of process shall not be made against any member of Tenant
except as may be necessary to secure jurisdiction of the limited liability company. No partner,
shareholder, director, employee, member or agent of Tenant shall be required to answer or
otherwise plead to any service of process, and no judgment shall be taken or writ of execution
levied against any partner, shareholder, director, employee or agent of Tenant. Notwithstanding
the foregoing, in no event shall the provisions of this Section 29.3 relieve Tenant’s
partners, shareholders, directors, employees, members or agents of any personal liability arising
out of, or in connection with, such partner’s, shareholder’s, director’s, employee’s, member’s or
agent’s gross negligence or willful misconduct.

     29.4. Each of the covenants and agreements of this Article 29 shall be applicable to
any covenant or agreement either expressly contained in this Lease or imposed by Applicable Laws
and shall survive the expiration or earlier termination of this Lease.

30. Premises Control by Landlord. Landlord and Landlord’s Agents may, at any and all
reasonable times during non-business hours (or during business hours if Tenant so requests), and
upon twenty-four (24) hours’ prior notice (provided that no time restrictions shall apply
or advance notice be required if an emergency necessitates immediate entry), enter the Premises to
(a) inspect the same and to determine whether Tenant is in compliance with its obligations
hereunder, (b) supply any service Landlord is required to provide hereunder, (c) show the Premises
to prospective purchasers or tenants during the final year of the Term, (d) post notices of
nonresponsibility, (e) access the telephone equipment, electrical substation and fire risers, or
(f) alter, improve or repair any portion of the Buildings. In connection with any such alteration,
improvement or repair as described in Subsection 30(f) above, Landlord and Landlord’s
Agents may erect in the Premises
scaffolding and other structures reasonably required for the alteration, improvement or repair
work to be performed. Subject to Section 15.4 above, in no event shall Tenant’s Rent abate
as a result of Landlord’s activities pursuant to this Section 30; provided,
however, that all such activities shall be conducted in such a manner so as to cause as
little interference to Tenant as is reasonably possible. Landlord shall at all times retain a key
with which to unlock all of the doors in the Premises. If an emergency (where there is an imminent
threat to persons or property) necessitates immediate access to the Premises, Landlord may use
whatever force is necessary to enter the Premises, and any such entry to the Premises shall not
constitute a forcible or unlawful entry to the Premises, a detainer of the Premises, or an eviction
of Tenant from the Premises or any portion thereof.

31. Construction; Quiet Enjoyment.

     31.1. Temporary Construction Easement. Tenant hereby grants Landlord and the Landlord
Parties from the Execution Date through the completion of the construction of the Landlord’s
Construction Work and the Tenant Improvements (each as defined in the New Parcel 3 Lease): (a)
access through the portion of Premises that are improved with walkways and driveways for the
purpose of access, and (b) over and across the portion of the Premises that is shown on Exhibit G
for storage of building supplies, materials and equipment, and staging of construction, for any and
all purposes reasonably related to the construction of the New Parcel 3 Building.

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     31.2. So long as Tenant is not in default under this Lease or as otherwise permitted by this
Lease, Landlord or anyone acting through or under Landlord shall not disturb Tenant’s occupancy of
the Premises. Notwithstanding the foregoing, to the extent that Landlord uses commercially
reasonable efforts to minimize any interference the construction of the New Parcel 3 Building may
have on Tenant’s use and quiet enjoyment of the Premises for Tenant’s normal business operations,
Tenant hereby (a) accepts any and all inconveniences associated with the construction of the New
Parcel 3 Building, including, any noise, paint, fumes, dust, debris, obstruction of access
(including any obstruction caused by the erection of scaffolding, barricades or other necessary
structures on the Property), or any other inconvenience caused by the construction of the New
Parcel 3 Building, (b) agrees that the performance of the construction of the New Parcel 3 Building
shall not constitute a constructive eviction nor shall Tenant be entitled to an abatement of Rent,
and (c) acknowledges and agrees that Landlord shall not, for any reason, be responsible or liable
to Tenant for any direct or indirect injury to Tenant or Tenant’s Agents, or interference with
Tenant’s business, arising from the construction of the New Parcel 3 Building; provided,
however, that if Landlord fails to use its commercially reasonable efforts to minimize any
interference that the construction of the New Parcel 3 Building may have on Tenant’s use of the
Premises for Tenant’s normal business operations, such failure results in an Adverse Condition, and
as a direct result of such Adverse Condition, Tenant is unable to conduct its business in a
reasonable manner in a material portion of the Premises, Tenant shall be entitled to an abatement
of rent with respect to such Adverse Condition to the extent Tenant is entitled to an abatement of
rent pursuant to the terms and conditions of Section 15.4 above.

32. Subordination and Attornment.

     32.1. Subject to the delivery of the non-disturbance agreements described in this Article
32 as a condition precedent to any such subordination, this Lease shall be subject and
subordinate to the lien of any mortgage, deed of trust, or lease in which Landlord is tenant now or
hereafter in force against the Premises or any portion thereof and to all advances made or
hereafter to be made upon the security thereof without the necessity of the execution and delivery
of any further instruments on the part of Tenant to effectuate such subordination. In
consideration of, and as a condition precedent to, Tenant’s agreement to permit its interest
pursuant to this Lease to be subordinated to any particular future ground or underlying lease of
the Buildings or the Premises or to the lien of any mortgage or trust deed, hereafter enforced
against the Buildings or the Premises and to any renewals, extensions, modifications,
consolidations and replacements thereof, Landlord shall deliver to Tenant a non-disturbance
agreement on (a) the form of Exhibit E attached hereto, (b) a commercially reasonable form of
non-disturbance agreements of the lessor under such ground lease or underlying lease or the holder
of such mortgage or trust deed, or (c) another commercially reasonable form. Landlord’s delivery
to Tenant of non-disturbance agreement(s) in favor of Tenant from any ground lessors,
mortgage holders or lien holders of Landlord who later came into existence at any time prior
to the expiration of the Term shall be in consideration of, and a condition precedent to, Tenant’s
agreement to be bound by the terms of this Article 32. Tenant shall be entitled, at
Tenant’s sole cost and expense, to record any such non-disturbance agreement promptly after full
execution and delivery of such agreement.

     32.2. Notwithstanding the foregoing, Tenant shall execute and deliver upon demand such further
commercially reasonable instrument or instruments evidencing such subordination of this Lease to
the lien of any such mortgage or mortgages or deeds of trust or lease in which Landlord is tenant
as may be required by Landlord. However, if any such mortgagee, beneficiary or Landlord under
lease wherein Landlord is tenant so elects, this Lease shall be deemed prior in lien to any such
lease, mortgage, or deed of trust upon or including the Premises regardless of date and Tenant
shall execute a statement in writing to such effect at Landlord’s request.

     32.3. Upon written request of Landlord and opportunity for Tenant to review, Tenant agrees to
execute any Lease amendments not materially altering the terms of this Lease, if required by a
mortgagee or beneficiary of a deed of trust encumbering real property of which the Premises
constitute a part incident to the financing of the real property of which the Premises constitute a
part. Any change affecting the amount or timing of the consideration to be paid by Tenant or
modifying the term of this Lease shall be deemed as materially altering the terms hereof.

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     32.4. Subject to Section 32.1, in the event any proceedings are brought for
foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of
trust made by Landlord covering the Premises, Tenant shall at the election of the purchaser at such
foreclosure or sale attorn to the purchaser upon any such foreclosure or sale and recognize such
purchaser as Landlord under this Lease.

33. Surrender.

     33.1. No surrender of possession of any part of the Premises shall release Tenant from any of
its obligations hereunder, unless such surrender is accepted in writing by Landlord.

     33.2. The voluntary or other surrender of this Lease by Tenant shall not effect a merger with
Landlord’s fee title or leasehold interest in the Premises or any portion thereof, unless Landlord
consents in writing, and shall, at Landlord’s option, operate as an assignment to Landlord of any
or all subleases.

     33.3. The voluntary or other surrender of any ground or other underlying lease that now exists
or may hereafter be executed affecting the Premises or any portion thereof, or a mutual
cancellation thereof or of Landlord’s interest therein by Landlord and its lessor shall not effect
a merger with Landlord’s fee title or leasehold interest in the Premises and shall, at the option
of the successor to Landlord’s interest in the Premises or any portion thereof operate as an
assignment of this Lease.

     33.4. In the event Tenant has performed any Alterations in accordance with this Lease, upon
surrender of the Premises, Tenant shall reimburse Landlord for any extra costs and expenses
incurred by Landlord by reason of any delays in re-leasing the Premises caused by Tenant’s removal
of such Alterations.

34. Waiver and Modification No provision of this Lease may be modified, amended or
supplemented except by an agreement in writing signed by Landlord and Tenant. The waiver by
Landlord of any breach by Tenant of any term, covenant or condition herein contained shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition
herein contained. The waiver by Tenant of any breach by Landlord of any term, covenant or
condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same
or any other term, covenant or condition herein contained.

35. Waiver of Jury Trial and Counterclaims. To the extent allowed under Applicable Laws, the parties waive trial by jury in any action,
proceeding or counterclaim brought by the other party hereto related to matters arising out of or
in any way connected with this Lease; the relationship between Landlord and Tenant; Tenant’s use or
occupancy of the Premises; or any claim of injury or damage related to this Lease or the Premises.

36. Hazardous Materials.

     36.1. After the Execution Date, Tenant shall not cause or permit any Hazardous Materials (as
hereinafter defined) to be brought upon, kept or used in or about the Premises in violation of
Applicable Laws by Tenant or Tenant’s Agents. If Tenant breaches such obligation, or if the
presence of Hazardous Materials brought upon, kept or used in or about the Premises by Tenant or
Tenant’s Agents results in contamination of the Premises or any adjacent property, or if
contamination of the Premises or any adjacent property by Hazardous Materials otherwise occurs
before or during the term of this Lease or any extension or renewal hereof or holding over
hereunder (other than in connection with substances that migrated to the Premises from any
adjoining property, except in the event Tenant is aware of such contamination and neither remedies
such contamination nor promptly notifies Landlord of the existence of such contamination), then
Tenant shall indemnify, save, defend and hold Landlord, its agents and contractors harmless from
and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses
(including, without limitation, diminution in value of the Premises or any portion thereof; damages
for the loss or restriction on use of rentable or usable space or of any amenity of the Premises;
damages arising from any adverse impact on marketing of space in the Premises; and sums paid in
settlement of claims, attorneys’ fees, consultants’ fees and experts’ fees) that arise before,
during or after the Term as a result of such breach or contamination, except to the extent arising
solely out of Landlord’s construction of the Landlord’s Construction Work or the Tenant
Improvements (each as defined in the Parcel 3

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Lease); provided, however, in no
event shall Tenant’s indemnity extend to consequential damages; provided that this sentence shall
not limit Landlord’s damages if, as a result of Tenant’s breach of this Lease: (a) Landlord does
not or is unable to lease the Premises to another party, or (b) a third party is unable to occupy
the Premises on the date specified in such third party’s lease. This indemnification of Landlord
by Tenant includes, without limitation, costs incurred in connection with any investigation of site
conditions or any cleanup, remedial, removal or restoration work required by any Governmental
Authority because of Hazardous Materials present in the air, soil or groundwater above, on or under
the Premises. Without limiting the foregoing, if the presence of any Hazardous Materials in, on,
under or about the Premises or any adjacent property caused or permitted by Tenant or Tenant’s
Agents results in any contamination of the Premises or any adjacent property, then Tenant shall
promptly take all actions at its sole cost and expense as are necessary to return the Premises and
any adjacent property to their respective condition existing prior to the time of such
contamination; provided that Landlord’s written approval of such action shall first be obtained,
which approval Landlord shall not unreasonably withhold; and provided, further, that it shall be
reasonable for Landlord to withhold its consent if such actions could have a material adverse
long-term or short-term effect on the Premises.

     36.2. Landlord acknowledges that it is not the intent of this Article 36 to prohibit
Tenant from operating its business as described in Section 2.7 above. Tenant may operate
its business according to the custom of Tenant’s industry so long as the use or presence of
Hazardous Materials is strictly and properly monitored according to Applicable Laws. As a material
inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business,
Tenant agrees to deliver to Landlord prior to the Execution Date a list identifying each type of
Hazardous Material to be present on the Premises and setting forth any and all governmental
approvals or permits required in connection with the presence of such Hazardous Material on the
Premises (the “Hazardous Materials List”). Tenant shall deliver to Landlord an updated
Hazardous Materials List on or prior to each annual anniversary of the Execution Date and shall
also deliver an updated Hazardous Materials List before any new Hazardous Materials are brought
onto the Premises. Tenant shall deliver to Landlord true and correct copies of the following
documents (hereinafter referred to as the “Documents”) relating to the handling, storage,
disposal and emission of Hazardous Materials prior to Execution Date or, if unavailable at that
time, concurrent with the receipt from or submission to any Governmental Authority: permits;
approvals; reports and correspondence; storage and management plans; notices of violations of
Applicable Laws; plans relating to the installation of any storage tanks to be installed in or
under the Premises (provided that installation of storage tanks shall only be
permitted after Landlord has given Tenant its written consent to do so, which consent Landlord
may withhold in its sole and absolute discretion); and all closure plans or any other documents
required by any and all Governmental Authorities for any storage tanks installed in, on or under
the Premises for the closure of any such storage tanks. Tenant shall not be required, however, to
provide Landlord with any portion of the Documents containing information of a proprietary nature
that, in and of themselves, do not contain a reference to any Hazardous Materials or activities
related to Hazardous Materials.

     36.3. At any time, and from time to time, prior to the expiration of the Term, Landlord shall
have the right to conduct appropriate tests of the Premises to demonstrate that Hazardous Materials
are present or that contamination has occurred due to Tenant or Tenant’s agents, employees or
invitees. Tenant shall pay all reasonable costs of such tests of the Premises if such tests
demonstrate that Tenant has breached any provision of this Lease regarding Hazardous Materials or
has any clean-up obligations under this Article 36.

     36.4. If underground or other storage tanks storing Hazardous Materials are: (a) located on
the Premises; (b) hereafter placed on the Premises by Tenant or Tenant’s Agents, (c) hereafter used
by Tenant or Tenant’s Agents, or (d) placed on the Premises by any other party and Tenant is aware
that such party placed such underground or other storage tank on the Premises, Tenant shall monitor
the storage tanks, maintain appropriate records, implement reporting procedures, properly close any
underground storage tanks, and take or cause to be taken all other steps necessary or required
under the Applicable Laws. Tenant shall pay all reasonable costs of such tests of the Premises

     36.5. Tenant’s and Landlord’s obligations under this Article 36 shall survive the
expiration or earlier termination of this Lease. During any period of time needed by Tenant or
Landlord after the termination of this Lease to complete the removal from the Premises of any

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such
Hazardous Materials that Tenant is liable for pursuant to the terms and conditions of this Lease,
Tenant shall continue to pay Rent in accordance with this Lease, which Rent shall be prorated
daily.

     36.6. As used herein, the term “Hazardous Material” means any hazardous or toxic substance,
material or waste that is or becomes regulated by any Governmental Authority.

37. Miscellaneous.

     37.1. This Lease shall not be effective until, and shall be contingent upon, the satisfaction
of each of the following conditions: (a) the Parcel 3 Lease shall have been fully executed and is
in full force and effect, (b) Landlord shall have received Northwestern Mutual Life Insurance
Company’s consent to this Lease and release of its security interest in the Parcel 3 Land, (c)
Landlord shall have received either: (i) a subordination, non-disturbance and attornment agreement
in the form of Exhibit E attached hereto executed by the holder of any existing mortgage or deed of
trust against the Property (the “Existing Lender”), or in another form reasonably
acceptable to Tenant, or (ii) a written acknowledgement in a form reasonably acceptable to Tenant
and from any Existing Lender that the Original Lease subordination, non-disturbance and attornment
agreement, if any, applies to this Lease to the same extent that it now applies to the Original
Lease, and (d) Landlord has received formal approval of substantial conformance review and plan
check comments from the City of San Diego in connection with the New Parcel 3 Building, which
approval and comments shall not contain any changes that cause Landlord to materially alter the
Landlord’s Construction Work or Tenant Improvements. If the conditions set forth in this
Section 37.1 are not satisfied or waived on or before April 10, 2007, this Lease shall
become null and void

     37.2. Within five (5) business days after the end of each calendar month, Tenant shall submit
to Landlord an invoice, or, in the event an invoice is not available, an itemized list of expenses,
of all costs and expenses that: (a) Tenant has incurred during the prior month; and (b) Tenant has
reasonably determined that Landlord is obligated to reimburse such costs and expenses pursuant to
the terms of this Lease.

     37.3. This Lease shall be deemed and construed to be an “absolute net lease” and, except as
herein expressly provided, Landlord shall receive all payments required to be made by Tenant free
from all charges, assessments, impositions, expenses and deductions of any and every kind or nature
whatsoever. Landlord shall not be required to furnish any services or
facilities or to make any repairs, replacements or alterations of any kind in or on the
Premises except as specifically provided herein. Tenant shall receive all invoices and bills
relative to the Premises and, except as otherwise provided herein, shall pay for all expenses
directly to the person or company submitting a bill without first having to forward payment for the
expenses to Landlord. Tenant shall at Tenant’s sole cost and expense be responsible for the
management of the Premises, shall maintain the landscaping and parking lot, and shall make those
additional repairs and alterations required of Tenant hereunder to maintain the Premises in first
class condition.

     37.4. Where applicable in this Lease, the singular includes the plural and the masculine or
neuter includes the masculine, feminine and neuter. The Section headings of this Lease are not a
part of this Lease and shall have no effect upon the construction or interpretation of any part
hereof.

     37.5. Submission of this instrument for examination or signature by Tenant does not constitute
a reservation of or option for a lease, and shall not be effective as a lease or otherwise until
execution by and delivery to both Landlord and Tenant.

     37.6. Time is of the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.

     37.7. Each provision of this Lease performable by Tenant shall be deemed both a covenant and a
condition.

     37.8. Whenever consent or approval of either party is required, that party shall not
unreasonably withhold such consent or approval, except as may be expressly set forth to the
contrary.

33

 

     37.9. The terms of this Lease are intended by the parties as a final expression of their
agreement with respect to the terms as are included herein, and may not be contradicted by evidence
of any prior or contemporaneous agreement.

     37.10. Any provision of this Lease that shall prove to be invalid, void or illegal shall in no
way affect, impair or invalidate any other provision hereof, and all other provisions of this Lease
shall remain in full force and effect and shall be interpreted as if the invalid, void or illegal
provision did not exist.

     37.11. Landlord may, but shall not be obligated to, record a short form memorandum hereof
without Tenant’s consent. Tenant shall reasonably cooperate with Landlord in such recording.
Neither party shall record this Lease. Tenant shall have the right to record a memorandum of this
Lease (which Landlord shall execute); provided, however, that Tenant shall be responsible for the
cost of recording any memorandum of this Lease, including any transfer or other taxes incurred in
connection with said recordation. Landlord shall reasonably cooperate with Tenant in such
recording at Tenant’s sole cost and expense.

     37.12. The language in all parts of this Lease shall be in all cases construed as a whole
according to its fair meaning and not strictly for or against either Landlord or Tenant.

     37.13. Each of the covenants, conditions and agreements herein contained shall inure to the
benefit of and shall apply to and be binding upon the parties hereto and their respective heirs;
legatees; devisees; executors; administrators; and permitted successors, assigns, sublessees.
Nothing in this Section 37.13 shall in any way alter the provisions of this Lease
restricting assignment or subletting.

     37.14. Any notice, consent, demand, bill, statement or other communication required or
permitted to be given hereunder shall be in writing and shall be given by personal delivery,
overnight delivery with a reputable nationwide overnight delivery service, or certified mail
(return receipt requested), and if given by personal delivery, shall be deemed delivered upon
receipt; if given by overnight delivery, shall be deemed delivered one (1) day after deposit with a
reputable nationwide overnight delivery service; and, if given by certified mail (return receipt
requested), shall be deemed delivered three (3) business days after the time the notifying party
deposits the notice with the United States Postal Service. Any notices given pursuant to this
Lease shall be addressed to Tenant at the Premises, or to Landlord or Tenant at the addresses
shown in Sections 2.9 and 2.10, respectively. Either party may, by notice to
the other given pursuant to this Section, specify additional or different addresses for notice
purposes.

     37.15. This Lease shall be governed by, construed and enforced in accordance with the laws of
the State in which the Premises are located, without regard to such State’s conflict of law
principles.

     37.16. That individual or those individuals signing this Lease guarantee, warrant and
represent that said individual or individuals have the power, authority and legal capacity to sign
this Lease on behalf of and to bind all entities, corporations, partnerships, limited liability
companies, joint venturers or other organizations and entities on whose behalf said individual or
individuals have signed.

     37.17. To induce Landlord to enter into this Lease, Tenant agrees that it shall promptly
furnish to Landlord, from time to time, upon Landlord’s written request, the most recent audited
year-end financial statements reflecting Tenant’s current financial condition. Tenant shall,
within ninety (90) days after the end of Tenant’s financial year, furnish Landlord with a certified
copy of Tenant’s audited year-end financial statements for the previous year. Tenant represents
and warrants that all financial statements, records and information furnished by Tenant to Landlord
in connection with this Lease are true, correct and complete in all respects. Notwithstanding the
foregoing, the provisions of this Section 37.17 shall not apply to Tenant so long as Tenant
is a publicly traded company that is listed on a United States stock exchange.

     37.18. This Lease is subject to any recorded covenants, conditions or restrictions now or
hereinafter affecting the Premises or Property (the “CC&Rs”). Tenant shall comply with all
CC&Rs except to the extent any future CC&Rs (a) materially adversely affects Tenant’s use of the
Premises for its Permitted Use; or (b) materially increase Tenant’s costs under this Lease.

34

 

38. Option to Extend Term. Tenant shall have the option (“Option”) to extend
the Term of this Lease as to the entire Premises (and no less than the entire Premises) upon the
following terms and conditions. Any extension of the Term pursuant to any Option shall be on all
the same terms and conditions as this Lease, except as follows:

     38.1. Tenant shall have three (3) options to extend the Term of this Lease by five (5) years
each (each, an “Extended Term”), upon the same terms and conditions as this Lease (except
as provided below). Basic Annual Rent shall be adjusted on the first (1st) day of each Extended
Term and every twenty-four (24) months thereafter in accordance with Article 6. The Basic
Annual Rent during each Extended Term shall equal the greater of: (a) the Fair Market Value for the
Extended Term; and (b) 102.5% of the then-current Basic Annual Rent at the end of the then-current
Term or Extended Term, as applicable. “Fair Market Value” means the then-prevailing
average annual rate that comparable landlords have accepted in current transactions from new,
non-equity (i.e., not being offered equity in the Buildings), nonrenewal, nonexpansion and
nonaffiliated tenants of similar financial strength for comparable space in comparable class “A”
office buildings comparably located, with comparable size, quality and floor height in a first
class office building, or as appropriate, a laboratory building, taking into consideration all
relevant factors, including, without limitation, the proposed lease term, the tenant inducements,
allowances or concessions, if any, and excluding specialized tenant improvements or tenant paid
improvements for a comparable term, with the determination of Fair Market Value to take into
account all relevant factors, including tenant inducements, allowances or concessions, if any, the
extent of the services provided or to be provided to the Premises, and contraction and expansion
options. In the event the tenant inducements, allowances or concessions granted differ from the
terms contained in this Lease, an adjustment to the Fair Market Value shall be made on a basis
consistent with the adjustments commonly made in the market for comparable differences and
concession packages. If Landlord and Tenant cannot agree on the Fair Market Value for purposes of
any Extended Term then they shall engage a mutually agreeable independent third party appraiser,
which appraiser shall be a real estate broker with at least ten (10) years’ experience in
appraising the rental value of leased commercial premises (for research and development and
laboratory uses) in the San Diego, California area (the “Appraiser”). If the parties
cannot agree on the Appraiser, each shall within ten (10) days after such impasse appoint an
Appraiser (meeting the qualifications set forth above) and, within ten (10) days after the
appointment of both such Appraisers, those two Appraisers shall select a third Appraiser meeting
the qualifications set forth above. If either party fails to timely appoint an Appraiser,
then the Appraiser the other party appoints shall be the sole Appraiser. Within ten (10) days
after appointment of all Appraiser(s), Landlord and Tenant shall each simultaneously give the
Appraisers (with a copy to the other party) its determination of Fair Market Value, with such
supporting data or information as each submitting party determines appropriate. Within ten (10)
days after such submissions, the Appraisers shall by majority vote select either Landlord’s or
Tenant’s Fair Market Value. The Appraisers may not select or designate any other Fair Market
Value. The determination of the Appraiser(s) shall bind the parties

     38.2. The Option is not assignable separate and apart from this Lease.

     38.3. The Option is conditional upon Tenant giving Landlord written notice of its election to
exercise an Option at least twelve (12) months prior to the end of the expiration of the initial
term of this Lease and, if exercised, the applicable Extended Term. Time shall be of the essence
as to Tenant’s exercise of each Option. Tenant assumes full responsibility for maintaining a
record of the deadlines to exercise any Option(s). Tenant acknowledges that it would be
inequitable to require Landlord to accept any exercise of any Option(s) after the date provided for
in this Section.

     38.4. Notwithstanding anything contained in this Article 38, Tenant shall not have the
right to exercise an Option:

          38.4.1 During the time commencing from the date Landlord delivers to Tenant a written notice
that Tenant is in monetary or material non-monetary default under any provision of this Lease or
the Parcel 3 Lease and continuing until Tenant has cured the specified default; or

          38.4.2 At any time after any Default as described in Article 23 of this Lease
(provided, however, that, for purposes of this Subsection 38.4.2, Landlord
shall not be required to provide Tenant with notice of such Default) and continuing until Tenant
cures any such Default, if such Default is susceptible to being cured; or

35

 

          38.4.3 In the event that Tenant has defaulted in the performance of its obligations under this
Lease three (3) or more times and a service or late charge has become payable under Section
23.1 for each of such defaults during the twelve (12)-month period immediately prior to the
date that Tenant intends to exercise an Option, whether or not Tenant has cured such defaults.

     38.5. The period of time within which Tenant may exercise an Option shall not be extended or
enlarged by reason of Tenant’s inability to exercise such Option because of the provisions of
Section 38.4.

39. Tenant’s Authority. Tenant hereby covenants and warrants that (a) Tenant is duly
incorporated or otherwise established or formed and validly existing under the laws of its state of
incorporation, establishment or formation, (b) Tenant has and is duly qualified to do business in
the state in which the Property is located, (c) Tenant has full corporate, partnership, trust,
association or other appropriate power and authority to enter into this Lease and to perform all
Tenant’s obligations hereunder and (d) each person (and all of the persons if more than one signs)
signing this Lease on behalf of Tenant is duly and validly authorized to do so.

40. Landlord’s Authority. Landlord hereby covenants and warrants that (a) Landlord is
duly incorporated or otherwise established or formed and validly existing under the laws of its
state of incorporation, establishment or formation, (b) Landlord has and is duly qualified to do
business in the state in which the Property is located, (c) Landlord has full corporate,
partnership, trust, association or other appropriate power and authority to enter into this Lease
and to perform all Landlord’s obligations hereunder and (d) each person (and all of the persons if
more than one signs) signing this Lease on behalf of Landlord is duly and validly authorized to do
so.

41. Confidentiality. Neither party shall disclose any terms or conditions of this
Lease (including Rent) or give a copy of this Lease to any third party, and Landlord shall not
release to any third
party any nonpublic financial information or nonpublic information about Tenant’s ownership
structure that Tenant gives Landlord, except (a) if required by Applicable Laws or in any judicial
proceeding, provided that the releasing party has given the other party reasonable notice
of such requirement, if feasible, (b) to a party’s attorneys, accountants, brokers and other bona
fide consultants or advisers, provided such third parties agree to be bound by this Section
or (c) to bona fide prospective assignees or subtenants of this Lease, provided they agree in
writing to be bound by this Section.

42. Excavation. If any excavation shall be made upon land adjacent to or under the
Buildings, or shall be authorized to be made, Tenant shall afford to the person causing or
authorized to cause such excavation, license to enter the Premises for the purpose of performing
such work as said person shall deem necessary or desirable to preserve and protect the Buildings
from injury or damage and to support the same by proper foundations, without any claim for damages
or liability against Landlord and without, subject to the terms and conditions of this Lease,
reducing or otherwise affecting Tenant’s obligations under this Lease.

43. Telecommunications Equipment. At any time during the Term, subject to the terms
of this Article 43 and subject to Landlord’s prior written approval, which approval shall
not be unreasonably withheld or delayed, Tenant shall have the exclusive right to install, at
Tenant’s sole cost and expense, satellite or microwave dishes or other communication equipment (the
“Telecommunications Equipment”) upon the roof of the Buildings. The physical appearance
and the size of the Telecommunications Equipment shall be subject to Landlord’s written approval
prior to installation, which approval will not unreasonably be withheld, any covenants, conditions,
or restrictions encumbering the Premises and, any Applicable Laws. Tenant shall maintain such
Telecommunications Equipment in good condition and repair, at Tenant’s sole cost and expense. The
cost of the Telecommunications Equipment, including but not limited to the permitting,
installation, maintenance and removal thereof shall be at Tenant’s sole cost and expense. If Tenant
fails to maintain its Telecommunications Equipment, or if Tenant fails to remove such
Telecommunications Equipment upon termination of this Lease, or fails to repair any damage caused
by such removal, Landlord may do so at Tenant’s expense. Tenant shall on demand reimburse Landlord
for all costs incurred by Landlord to effect such removal, which amounts shall be deemed Additional
Rent and shall include without limitation, all sums disbursed, incurred or deposited by Landlord,
including Landlord’s costs, expenses and actual attorneys’ fees with interest thereon. Tenant
shall indemnify, defend and hold harmless Landlord from and against any loss, cost, claim, lawsuit,
liability or expense (including

36

 

reasonable attorneys’ fees and disbursements) arising directly or
indirectly out of Tenant’s failure to perform any of its obligations under this Article 43.

44. Access to Premises. Subject to Section 30, Tenant shall be granted access
to the Premises (including the parking facilities) twenty-four (24) hours per day, seven (7) days
per week, every day of the year.

45. Secured Areas. Notwithstanding anything to the contrary set forth in this Lease,
Tenant may designate certain areas of the Premises as “Secured Areas” should Tenant require such
areas for the purpose of securing certain valuable property or confidential information. Landlord
may not enter such Secured Areas except in the case of emergency or in the event of a Landlord
inspection, in which case Landlord shall provide Tenant with one (1) business day prior written
notice of the specific date and time of such Landlord inspection.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

37

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first above
written.

LANDLORD:

BMR-9885 TOWNE CENTRE DRIVE LLC,

a Delaware limited liability company

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

TENANT:

ILLUMINA, INC.,

a Delaware corporation

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

[Signature
Page — Parcels 1&2 Illumina Lease]

 

 

EXHIBIT A

TENANT’S PERSONAL PROPERTY 

	1)	 	All Data Servers/Racks that are not mounted to the floor
	 
	2)	 	2 large UPS’s

	 	a)	 	1 in the A/2 Data Room
	 
	 	b)	 	1 in the A/1 Shipping area

	3)	 	RO/DI Water System
	 
	4)	 	Backup Generator
	 
	5)	 	Boardroom Electronics and Podium
	 
	6)	 	All Modular Furniture
	 
	7)	 	All Shelving/Racking
	 
	8)	 	Reagent Delivery System
	 
	9)	 	Caging Material
	 
	10)	 	All Equipment Specific to the Production Process of Illumina other than Fume Hoods and
Bio-Safety Cabinets

EXHIBIT A-1

 

 

EXHIBIT B

RULES AND REGULATIONS

     NOTHING IN THESE RULES AND REGULATIONS (“RULES AND REGULATIONS”) SHALL SUPPLANT ANY
PROVISION OF THE LEASE. IN THE EVENT OF A CONFLICT OR INCONSISTENCY BETWEEN THESE RULES AND
REGULATIONS AND THE LEASE, THE LEASE SHALL PREVAIL.

	1.	 	Except as specifically provided in the Lease to which these Rules and Regulations are
attached, no sign, placard, picture, advertisement, name or notice shall be installed or
displayed on any part of the outside of the Premises without Landlord’s prior written consent.
Landlord shall have the right to remove, at Tenant’s sole cost and expense and without
notice, any sign installed or displayed in violation of this rule.

	2.	 	If Landlord objects in writing to any curtains, blinds, shades, screens or hanging plants or
other similar objects attached to or used in connection with any window or door of the
Premises or placed on any windowsill, which window, door or windowsill is (a) visible from the
exterior of the Premises and (b) not included in plans approved by Landlord, then Tenant shall
promptly remove said curtains, blinds, shades, screens or hanging plants or other similar
objects at its sole cost and expense.

	3.	 	Tenant shall not obstruct any sidewalks or entrances to the Buildings, or any halls,
passages, exits, entrances or stairways within the Premises, in any case that are required to
be kept clear for health and safety reasons.

	4.	 	Tenant shall not place a load upon any floor of the Premises that exceeds the load per square
foot that (a) such floor was designed to carry or (b) that is allowed by Applicable Laws.

	5.	 	Tenant shall not use any method of heating or air conditioning other than as approved in
writing by Landlord.

	6.	 	Tenant shall not install any radio, television or other antenna, cell or other communications
equipment, or any other devices on the roof or exterior walls of the Premises except as
otherwise provided in the Lease. Tenant shall not interfere with radio, television or other
communications from or in the Premises or elsewhere.

	7.	 	Canvassing, peddling, soliciting and distributing handbills or any other written material
within, on or around the Premises are prohibited, and Tenant shall cooperate to prevent such
activities.

	8.	 	Tenant shall store all of its trash, garbage and Hazardous Materials within its Premises or
in designated receptacles outside of the Premises. Tenant shall not place in any such
receptacle any material that cannot be disposed of in the ordinary and customary manner of
trash, garbage and Hazardous Materials disposal.

	9.	 	The Premises shall not be used for any unlawful or reasonably objectionable purposes. No
cooking shall be done or permitted on the Premises; provided, however, that Tenant may use (a)
equipment approved in accordance with the requirements of insurance policies that Landlord or
Tenant is required to purchase and maintain pursuant to the Lease for brewing coffee, tea, hot
chocolate and similar beverages, and (b) microwave ovens for employees’ use; provided,
further, that any such equipment and microwave ovens are used in accordance with Applicable
Laws.

	10.	 	Tenant shall not, without Landlord’s prior written consent, use the name of the Premises, if
any, in connection with or in promoting or advertising Tenant’s business except as Tenant’s
address.

	11.	 	Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any Governmental Authority.

EXHIBIT B-1

 

 

	12.	 	Tenant assumes any and all responsibility for protecting the Premises from theft, robbery and
pilferage, which responsibility includes keeping doors locked and other means of entry to the
Premises closed.

	13.	 	Landlord may waive any one or more of these Rules and Regulations for the benefit of Tenant,
but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in
favor of Tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations
against Tenant.

	14.	 	These Rules and Regulations are in addition to, and shall not be construed to in any way
modify or amend, in whole or in part, the terms covenants, agreements and conditions of the
Lease.

	15.	 	Landlord reserves the right to make such other reasonable rules and regulations as, in its
judgment, may from time to time be needed for safety and security, the care and cleanliness of
the Premises, or the preservation of good order therein; provided, however, that Landlord
shall provide written notice to Tenant of such rules and regulations prior to them taking
effect. Tenant agrees to abide by these Rules and Regulations and any additional reasonable
rules and regulations issued or adopted by Landlord.

	16.	 	Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or
Tenant’s Agents to be loaded, unloaded or parked in areas other than those designated by
Landlord for such activities. No vehicles are to be left in the parking areas overnight and
no vehicles are to be parked in the parking areas other than normally sized passenger
automobiles, motorcycles and pick-up trucks. No extended term storage of vehicles is
permitted. Landlord reserves the right, without cost or liability to Landlord, to tow any
vehicle if such vehicle’s audio theft alarm system remains engaged for an unreasonable period
of time. Washing, waxing, cleaning or servicing of any vehicle in any portion of the Premises
is prohibited.

	17.	 	Tenant shall be responsible for the observance of these Rules and Regulations by Tenant’s
employees, agents, clients, customers, invitees and guests.

EXHIBIT B-2

 

 

EXHIBIT C

FORM OF ESTOPPEL CERTIFICATE

	 	 	 
	To:

	 	BMR-9885 Towne Centre Drive LLC
	 

	 	17140 Bernardo Center Drive, Suite 222
	 

	 	San Diego, CA 92128
	 

	 	Attention: General Counsel/Real Estate
	 
	 	 
	 

	 	BioMed Realty, L.P.
	 

	 	c/o BioMed Realty Trust, Inc.
	 

	 	17140 Bernardo Center Drive, Suite 222
	 

	 	San Diego, CA 92128

Re: 9885 Towne Centre Drive (the “Premises”) at 9885 Towne Centre Drive, San Diego,
California (the “Property”)

     The undersigned tenant (“Tenant”) hereby certifies to you as follows:

1. Tenant is a tenant at the Property under a lease (the “Lease”) for the Premises dated as
of [___], 20[___]. The Lease has not been cancelled, modified, assigned, extended or amended
[except as follows: [___]], and there are no other agreements, written or oral, affecting or
relating to Tenant’s lease of the Premises or any other space at the Property. The lease term
expires on [___], 20[___].

2. Tenant took possession of the Premises, currently consisting of [___] square feet, on
[___], 20[___], and commenced to pay rent on [___], 20[___]. Tenant has full possession of
the Premises, has not assigned the Lease or sublet any part of the Premises, and does not hold the
Premises under an assignment or sublease[, except as follows: [___]].

3. All base rent, rent escalations and additional rent under the Lease have been paid through
[___], 20[___]. There is no prepaid rent[, except $[___]][, and the amount of security
deposit is $[___] [in cash][in the form of a letter of credit]]. Tenant currently has no right
to any future rent abatement under the Lease.

4. Base rent is currently payable in the amount of $[___] per month.

5. Tenant is currently paying estimated payments of additional rent of $[___] per month on
account of real estate taxes, insurance, management fees and common area maintenance expenses.

6. All work to be performed for Tenant under the Lease has been performed as required under the
Lease and has been accepted by Tenant[, except [___]], and all allowances to be paid to Tenant,
including allowances for tenant improvements, moving expenses or other items, have been paid.

7. The Lease is in full force and effect, free from default and free from any event that could
become a default under the Lease, and Tenant has no claims against the landlord or offsets or
defenses against rent, and there are no disputes with the landlord. Tenant has received no notice
of prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents payable
thereunder[, except [___]].

8. [Tenant has the following expansion rights or options for the Property: [___].][Tenant has
no rights or options to purchase the Property.]

9. To Tenant’s knowledge, no hazardous wastes have been generated, treated, stored or disposed of
by or on behalf of Tenant in, on or around the Premises in violation of any environmental laws.

10. The undersigned has executed this Estoppel Certificate with the knowledge and understanding
that [INSERT NAME OF LANDLORD, PURCHASER OR LENDER, AS APPROPRIATE] or its assignee is acquiring
the Property in reliance on this certificate and that the undersigned shall be bound by this
certificate. The statements contained herein may be relied upon by [INSERT NAME OF PURCHASER OR
LENDER, AS APPROPRIATE],

EXHIBIT C-1

 

 

[LANDLORD], BioMed Realty, L.P., BioMed Realty Trust, Inc., and any mortgagee of the Property and
their respective successors and assigns.

     Any capitalized terms not defined herein shall have the respective meanings given in the
Lease.

Dated this [____] day of [_______], 20[__].

[___],

a [___]

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

EXHIBIT C-2

 

 

EXHIBIT D

FORM OF LETTER OF CREDIT

[On letterhead or L/C letterhead of Issuer.]

LETTER OF CREDIT

Date: _______, 200__

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(the “Beneficiary”)	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Attention:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	L/C. No.:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Loan No.:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Ladies and Gentlemen:

     We establish in favor of Beneficiary our irrevocable and unconditional Letter of Credit
numbered as identified above (the “L/C”) for an aggregate amount of $___, expiring at
___:00 p.m. on ___ or, if such day is not a Banking Day, then the next succeeding Banking Day
(such date, as extended from time to time, the “Expiry Date”). “Banking Day” means
a weekday except a weekday when commercial banks in ___ are authorized or required to
close.

     We authorize Beneficiary to draw on us (the “Issuer”) for the account of ___(the
“Account Party”), under the terms and conditions of this L/C.

     Funds under this L/C are available by presenting the following documentation (the “Drawing
Documentation”): (a) the original L/C and (b) a sight draft substantially in the form of
Exhibit A, with blanks filled in and bracketed items provided as appropriate. No other evidence of
authority, certificate, or documentation is required.

     Drawing
Documentation must be presented at Issuer’s office at ___ on or before the
Expiry Date by personal presentation, courier or messenger service, or fax. Presentation by fax
shall be effective upon electronic confirmation of transmission as evidenced by a printed report
from the sender’s fax machine. After any fax presentation, but not as a condition to its
effectiveness, Beneficiary shall with reasonable promptness deliver the original Drawing
Documentation by any other means. Issuer will on request issue a receipt for Drawing
Documentation.

     We agree, irrevocably, and irrespective of any claim by any other person, to honor drafts
drawn under and in conformity with this L/C, within the maximum amount of this L/C, presented to us
on or before the Expiry Date, provided we also receive (on or before the Expiry Date) any other
Drawing Documentation this L/C requires.

     We shall pay this L/C only from our own funds by check or wire transfer, in compliance with
the Drawing Documentation.

     If Beneficiary presents proper Drawing Documentation to us on or before the Expiry Date, then
we shall pay under this L/C at or before the following time (the “Payment Deadline”): (a)
if presentment is made at or before noon of any Banking Day, then the close of such Banking Day;
and (b) otherwise, the close of the next Banking Day. We waive any right to delay payment beyond
the Payment Deadline. If we determine that Drawing Documentation is not proper, then we shall so
advise Beneficiary in writing, specifying all grounds for our determination, within one Banking Day
after the Payment Deadline.

     Partial drawings are permitted. This L/C shall, except to the extent reduced thereby, survive
any partial drawings.

     We shall have no duty or right to inquire into the validity of or basis for any draw under
this L/C or any Drawing Documentation. We waive any defense based on fraud or any claim of fraud.

EXHIBIT D-1

 

 

     The
Expiry Date shall automatically be extended by one year (but never beyond ___ the
“Outside Date”) unless, on or before the date thirty (30) days before any Expiry Date, we
have given Beneficiary notice that the Expiry Date shall not be so extended (a “Nonrenewal
Notice”). We shall promptly upon request confirm any extension of the Expiry Date under the
preceding sentence by issuing an amendment to this L/C, but such an amendment is not required for
the extension to be effective. We need not give any notice of the Outside Date.

     Beneficiary may from time to time without charge transfer this L/C, in whole but not in part,
to any transferee (the “Transferee”). Issuer shall look solely to Beneficiary for payment
of any fee for any transfer of this L/C. Beneficiary or Transferee shall consummate such transfer
by delivering to Issuer the original of this L/C and a Transfer Notice substantially in the form of
Exhibit B, purportedly signed by Beneficiary, and designating Transferee. Issuer shall promptly
reissue or amend this L/C in favor of Transferee as Beneficiary. Upon any transfer, all references
to Beneficiary shall automatically refer to Transferee, who may then exercise all rights of
Beneficiary. Issuer expressly consents to any transfers made from time to time in compliance with
this paragraph.

     Any notice to Beneficiary shall be in writing and delivered by hand with receipt acknowledged
or by overnight delivery service such as FedEx (with proof of delivery) at the above address, or
such other address as Beneficiary may specify by written notice to Issuer. A copy of any such
notice shall also be delivered, as a condition to the effectiveness of such notice, to:
___ (or such replacement as Beneficiary designates from time to time by written notice).

     No amendment that adversely affects Beneficiary shall be effective without Beneficiary’s
written consent.

     This L/C is subject to and incorporates by reference: (a) the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce Publication No. 500 (the “UCP”); and (b) to
the extent not inconsistent with the UCP, Article 5 of the Uniform Commercial Code of the
State of New York.

Very truly yours,

[Issuer Signature]

EXHIBIT D-2

 

 

EXHIBIT A

FORM OF SIGHT DRAFT

[BENEFICIARY LETTERHEAD]

TO:

[Name and Address of Issuer]

SIGHT DRAFT

AT SIGHT, pay to the Order of                     , the sum of                      United States Dollars
($___). Drawn under [Issuer] Letter of Credit No.                      dated                     .

[Issuer is hereby directed to pay the proceeds of this Sight Draft solely to the following account:
                                        .]

[Name and signature block, with signature or purported signature of Beneficiary]

Date:                     

EXHIBIT D-3

 

 

EXHIBIT B

FORM OF TRANSFER NOTICE

[BENEFICIARY LETTERHEAD]

TO:

[Name and Address of Issuer] (the “Issuer”)

TRANSFER NOTICE

By signing below, the undersigned, Beneficiary (the “Beneficiary”) under Issuer’s Letter of Credit
No.                      dated                      (the “L/C”), transfers the L/C to the following transferee
(the “Transferee”):

[Transferee Name and Address]

The original L/C is enclosed. Beneficiary directs Issuer to reissue or amend the L/C in favor of
Transferee as Beneficiary. Beneficiary represents and warrants that Beneficiary has not
transferred, assigned, or encumbered the L/C or any interest in the L/C, which transfer,
assignment, or encumbrance remains in effect.

[Name and signature block, with signature or purported signature of Beneficiary]

Date:                    

EXHIBIT D-4

 

 

EXHIBIT E

FORM OF SUBORDINATION, NON-DISTURBANCE 

AND ATTORNMENT AGREEMENT 

RECORDED AT REQUEST OF

AND WHEN RECORDED RETURN TO:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	Attention:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

SUBORDINATION, NONDISTURBANCE, AND ATTORNMENT AGREEMENT

     This Subordination, Nondisturbance, and Attornment Agreement (“Agreement”) is made as
of ___, ___ between                      (“Lender”), a                     , having its
principal place of business at                     ,                     ,                      and Illumina, Inc.
(“Tenant”), a Delaware corporation, having its principal place of business at 9855 through
9885 Towne Centre Drive, San Diego, California.

Recitals:

     A. Lender has agreed to make a loan to BMR-9865 Towne Center Drive LLC, a Delaware limited
liability company (“Landlord”), to be secured by a deed of trust, dated                     ,
___, and recorded on                     , ___, as Instrument No.                     , in the Official
Records of San Diego County, California (together with all amendments, increases, renewals,
modifications, consolidations, spreaders, combinations, supplements, replacements, substitutions,
and extensions, either current or future, referred to hereafter as the “Mortgage”)
encumbering Landlord’s ownership interest in real property located in San Diego County, State of
California. The legal description of the encumbered real property (the “Mortgage
Premises”) is set forth in Exhibit A, attached to this Agreement. The Mortgage, together with
the promissory note or notes, the loan agreement(s), and other documents executed in connection
with it are hereafter collectively referred to as the “Loan Documents”.

     B. On                     , ___, Tenant and Landlord entered into that certain Lease for a portion
of the Mortgage Premises (the “Lease”). The Lease creates a leasehold estate in favor of
Tenant for space (the “Leased Premises”) located on the Mortgage Premises.

     C. In connection with execution of the Mortgage, Landlord also executed and delivered to
Lender an [Assignment of Leases, Rents and Profits] dated                     , ___, and recorded on
                    , ___, as Instrument No.                    , in the Official Records of the County Recorder
of San Diego, California concerning all rents, issues and profits from the Mortgage Premises. This
document, together with all amendments, renewals, modifications consolidations, replacements,
substitutions and extensions, is hereafter referred to as the “Assignment of Rents.”

     TO CONFIRM their understanding concerning the legal effect of the Mortgage and the Lease, in
consideration of the mutual covenants and agreements contained in this Agreement and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Tenant,
intending to be legally bound, agree and covenant as follows:

     1. Representations and Warranties. Tenant warrants and represents that the Lease is
in full force and effect and that, as of the date of this Agreement and to Tenant’s actual
knowledge, there is no default under the Lease by Landlord or Tenant.

     2. Tenant Subordination.

          2.1 Subject to the provisions of Section 3, the Loan Documents shall constitute a lien
or charge on the Mortgage Premises that is prior and superior to the Lease, to the leasehold estate
created by it, and to all rights and privileges of Tenant under it; by this

EXHIBIT E-1

 

 

Agreement, the Lease, the leasehold estate created by it, together with all rights and
privileges of Tenant under it, is, subject to Section 3, subordinated, at all times, to the
lien or charge of the Loan Documents in favor of Lender.

          2.2 By executing this Agreement, Tenant, subject to Section 3, subordinates the Lease
and Tenant’s interest under it to the lien right and security title, and terms of the Loan
Documents, and to all advances or payments made, or to be made, under any Loan Document.

     3. Nondisturbance.

          3.1 Lender consents to the Lease.

          3.2 Despite Tenant’s subordination under Section 2, Tenant’s peaceful and quiet
possession of the Leased Premises shall not be disturbed and Tenant’s rights and privileges under
the Lease, shall not be diminished by Lender’s exercise of its rights or remedies under the Loan
Documents (subject to the provisions of Section 5), provided that:

     (a) no Default (as defined in the Lease) exists; and

     (b) the Lease has not been canceled or terminated (without regard to whether Landlord
or Tenant is then in default under the Lease).

          3.3 Tenant shall not be named or joined in any foreclosure, trustee’s sale, or other
proceeding to enforce the Loan Documents unless such joinder shall be legally required to perfect
the foreclosure, trustee’s sale, or other proceeding.

     4. Attornment.

          4.1 If Lender shall succeed to Landlord’s interest in the Mortgage Premises by foreclosure of
the Mortgage, by deed in lieu of foreclosure, or in any other manner, Tenant shall be bound to
Lender (and Lender shall be bound to Tenant) under all the terms, covenants and conditions of the
Lease for the balance of its term with the same force and effect as if Lender were the Landlord
under the Lease. Tenant shall be deemed to have full and complete attornment to, and to have
established direct privity between Tenant and:

     (a) Lender when in possession of the Mortgage Premises;

     (b) a receiver appointed in any action or proceeding to foreclose the Mortgage;

     (c) any party acquiring title to the Mortgage Premises; or

     (d) any successor to Landlord.

          4.2 Tenant’s attornment is self-operating, and it shall continue to be effective without
execution of any further instrument by any of the parties to this Agreement or the Lease. Lender
agrees to give Tenant written notice if Lender has succeeded to the interest of the Landlord under
the Lease. Subject to Section 5, the terms of the Lease are incorporated into this
Agreement by reference.

          4.3 If the interests of Landlord under the Lease are transferred by foreclosure of the
Mortgage, deed in lieu of foreclosure, or otherwise, to a party other than Lender
(“Transferee”), in consideration of, and as condition precedent to, Tenant’s agreement to
attorn to any such Transferee, Transferee shall be deemed to have assumed all terms, covenants, and
conditions of the Lease to be observed or performed by Landlord from the date on which the
Transferee succeeds to Landlord’s interests under the Lease; provided that the liability of any
Transferee to Tenant under the terms of the Lease shall be limited in the same manner as Lender’s
liability is limited under Section 5.

     5. Lender as Landlord. If Lender shall succeed to the interest of Landlord under the
Lease, Lender shall be bound to Tenant under all the terms, covenants and conditions of the Lease,
and Tenant shall, from the date of Lender’s succession to the Landlord’s interest under the Lease,
have the same remedies against Lender for breach of the Lease that Tenant would have had under the
Lease against Landlord; provided, however, that despite anything to
the contrary in this Agreement or the Lease, Lender, as successor to the Landlord’s interest,
shall not be:

EXHIBIT E-2

 

 

     (a) liable for any act or omission of any previous landlord (including Landlord),
provided that the foregoing shall not be construed to limit Tenant’s right to possession of
the Leased Premises for the entire term of the Lease, as extended, on the terms and
conditions of the Lease;

     (b) subject to any offsets or defenses which Tenant might have had against any previous
landlord (including Landlord) relating to any event or occurrence before the date of
attornment. The foregoing shall not limit either (a) Tenant’s right to exercise against
successor landlord any offset right otherwise available to Tenant because of events
occurring after the date of attornment, or (b) successor landlord’s obligation to correct
any conditions that existed as of the date of attornment and that violate successor
landlord’s obligations as landlord under the Lease;

     (c) unless actually received by Lender, bound by any rent or additional rent that
Tenant might have paid for more than one month in advance to any prior landlord (including
Landlord), other than, and only to the extent of, prepayments (if any) expressly required
under the Lease; or

     (d) bound by an amendment or modification of the Lease which would materially adversely
affect any right of Landlord under the Lease made without Lender’s written consent, which
consent shall not be unreasonably withheld, conditioned or delayed, except for any amendment
or modification evidencing Tenant’s exercise of any rights expressly granted to Tenant in
the Lease so long as such amendment or modification reflects the terms and conditions
provided with regards to such rights as reflected in the Lease. Notwithstanding the
foregoing, any modification, amendment or waiver made or entered into between Landlord and
Tenant shall be binding as between Landlord and Tenant.

     6. Notice of Default; Right To Cure. Tenant agrees to give Lender prompt written
notice of any known default by Landlord under the Lease. Tenant agrees that, before Tenant
exercises any of its rights or remedies under the Lease, Lender shall have the right, but not the
obligation, to cure the default within the same time given Landlord in the lease to cure the
default, plus an additional thirty (30) days. Tenant agrees that the cure period shall be extended
by the time reasonably necessary for Lender to commence foreclosure proceedings and to obtain
possession of the Mortgage Premises, provided that this sentence shall not apply if the breach or
default by Landlord poses an immediate threat to the health, safety or welfare of Tenant’s
employees, customers or invitees at the Leased Premises, provided further that:

     (a) Lender shall notify Tenant of Lender’s intent to effect its remedy within thirty
(30) days after receipt of Tenant’s notice;

     (b) Lender initiates immediate steps to foreclose on or to recover possession of the
Mortgage Premises;

     (c) Lender initiates legal proceedings to appoint a receiver for the Mortgage Premises
or to foreclose on or recover possession of the Mortgage Premises within the thirty (30) day
period; and

     (d) Lender prosecutes such proceedings and remedies with due diligence and continuity
to completion. 

     Tenant also agrees to its use its commercially reasonable efforts to give Lender notice of any
casualty damage to the Mortgage Premises, but Tenant’s failure to provide such notice shall not be
a default under this Agreement.

     7. Assignment of Rents. If Landlord defaults in its performance of the terms of the
Loan Documents, Tenant agrees to recognize the Assignment of Rents made by Landlord to Lender and
shall pay to Lender, as assignee, from the time Lender gives Tenant written notice that Landlord is
in default under the terms of the Loan Documents, the rents under the Lease, but only those rents
that are due or that become due under the terms of the Lease after notice by

EXHIBIT E-3

 

 

Lender. Payments of rents to Lender by Tenant under the assignment of rents and Landlord’s
default shall continue until the first of the following occurs:

     (a) No further rent is due or payable under the Lease;

     (b) Lender gives Tenant written notice that the Landlord’s default under the Loan
Documents has been cured and instructs Tenant that the rents shall thereafter be payable to
Landlord; or

     (c) The lien of the Mortgage has been foreclosed and the purchaser at the foreclosure
sale (whether Lender or a Transferee) gives Tenant written notice of the foreclosure sale.
On giving written notice, the purchaser shall succeed to Landlord’s interests under the
Lease, after which time the rents and other benefits due Landlord under the Lease shall be
payable to the purchaser as the owner of the Mortgage Premises.

     8. Tenant’s Reliance. When complying with the provisions of Section 7, Tenant
shall be entitled to rely on the notices given by Lender under Section 7, and Landlord
agrees to release, relieve, protect and indemnify Tenant from and against any and all loss, claim,
damage, or liability (including reasonable attorney’s fees) arising out of Tenant’s compliance with
such notice.

     Tenant shall be entitled to full credit under the Lease for any rents paid to Lender in
accordance with Section 7 to the same extent as if such rents were paid directly to
Landlord. Any dispute between Lender (or Lender’s Transferee) and Landlord as to the existence of a
default by Landlord under the terms of the Mortgage, the extent or nature of such default, or
Lender’s right to foreclosure of the Mortgage, shall be dealt with and adjusted solely between
Lender (or Transferee) and Landlord, and Tenant shall not be made a party to any such dispute
(unless required by law).

     9. Lender’s Status. Nothing in this Agreement shall be construed to be an agreement
by Lender to perform any covenant of the Landlord under the Lease unless and until it obtains title
to the Mortgage Premises by power of sale, judicial foreclosure, or deed in lieu of foreclosure, or
obtains possession of the Mortgage Premises under the terms of the Loan Documents.

     10. Cancellation of Lease. Tenant agrees that it will not cancel, terminate, or
surrender the Lease, except at the normal expiration of the Lease term or as provided in the Lease,
or except as otherwise provided in Section 5 above, enter into any agreement, amendment, or
modification of the Lease except any agreement, amendment, or modification contemplated by or
provided by the terms of the Lease unless Lender gives its prior written consent, which shall not
be unreasonably withheld, conditioned or delayed; provided, however, that no Lender consent shall
be required pursuant to a termination permitted under the Lease.

     11. Special Covenants. Despite anything in this Agreement or the Lease to the
contrary, if Lender acquires title to the Mortgage Premises, Tenant agrees that: Lender shall have
the right at any time in connection with the sale or other transfer of the Mortgage Premises to
assign the Lease or Lender’s rights under it to any person or entity, and that Lender, its
officers, directors, shareholders, agents, and employees shall be released from any further
liability under the Lease arising after the date of such transfer, provided that the assignee of
Lender’s interest assumes Lender’s obligations under the Lease (including liability for all
obligations accruing prior to the date of the assignment), in writing, from the date of such
transfer.

     12. Transferee’s Liability. If a Transferee acquires title to the Mortgage Premises:

     (a) Tenant’s recourse against Transferee for default under the Lease shall be limited
to the Mortgage Premises or any sale, insurance, or condemnation proceeds from the Mortgage
Premises;

     (b) Tenant shall look exclusively to Transferee’s interests described in (a) above for
the payment and discharge of any obligations imposed on Transferee under this Agreement or
the Lease ; and

     (c) Transferee, its officers, directors, shareholders, agents, and employees are
released and relieved of any personal liability under the Lease; and

EXHIBIT E-4

 

 

     (d) Tenant shall not collect or attempt to collect any judgment out of any other
assets, or from any general or limited partners or shareholders of Transferee.

     Notwithstanding the foregoing, Tenant reserves all rights and remedies available to it in law
or in equity against the prior landlord.

     13. Transferee’s Performance Obligations. Subject to the limitations provided in
Sections 11 and 12, if a Transferee acquires title to the Mortgage Premises, the
Transferee shall perform and recognize: all tenant improvement allowance provisions, all rent-free
and rent rebate provisions, and all options and rights of offer, in addition to Landlord’s other
obligations under the Lease.

     14. Notice. All notices required by this Agreement shall be given in writing and
shall be deemed to have been duly given for all purposes when:

     (a) deposited in the United States mail (by registered or certified mail, return
receipt requested, postage prepaid); or

     (b) deposited with a nationally recognized overnight delivery service such as Federal
Express or Airborne.

     Each notice must be directed to the party to receive it at its address stated below or at such
other address as may be substituted by notice given as provided in this Section.

     The addresses are:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Lender:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Attention:                     
                                 	 	 
	 
	 	 	 	 	 	 
	 

	 	Copy to:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Attention:                     
                                 	 	 
	 
	 	 	 	 	 	 
	 

	 	Tenant:
	 	Illumina, Inc.	 	 
	 

	 	 	 	9885 Towne Centre Drive	 	 
	 

	 	 	 	San Diego, CA 92121	 	 
	 

	 	 	 	Attention: Christian Henry	 	 
	 
	 	 	 	 	 	 
	 	 	Copy to:	 	Allen Matkins Leck Gamble Mallory & Natsis LLP
	 

	 	 	 	501 West Broadway, 15th Floor	 	 
	 

	 	 	 	San Diego, CA 92121	 	 
	 

	 	 	 	Attention: Martin L. Togni, Esq.	 	 

Copies of notices sent to the parties’ attorneys or other parties are courtesy copies, and failure
to provide such copies shall not affect the effectiveness of a notice given hereunder.

     15. Miscellaneous Provisions.

          15.1 This Agreement may not be modified orally; it may be modified only by an agreement in
writing signed by the parties or their successors-in-interest. This Agreement shall inure to the
benefit of and bind the parties and their successors and assignees.

          15.2 The captions contained in this Agreement are for convenience only and in no way limit or
alter the terms and conditions of the Agreement.

          15.3 This Agreement has been executed under and shall be construed, governed, and enforced, in
accordance with the laws of the State of California except to the extent that California law is
preempted by the U.S. federal law. The invalidity or unenforceability of one or more provisions of
this Agreement does not affect the validity or enforceability of any other provisions.

EXHIBIT E-5

 

 

          15.4 This Agreement has been executed in duplicate. Lender and Tenant agree that one (1) copy
of the Agreement will be recorded.

          15.5 This Agreement shall be the entire and only agreement concerning subordination of the
Lease and the leasehold estate created by it, together with all rights and privileges of Tenant
under it, to the lien or charge of the Loan Documents and shall supersede and cancel, to the extent
that it would affect priority between the Lease and the Loan Documents, any previous subordination
agreements, including provisions, if any, contained in the Lease that provide for the subordination
of the Lease and the leasehold estate created by it to a deed of trust or mortgage.

          15.6 This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which copies, taken together,
shall constitute but one and the same instrument. Signature and acknowledgment pages may be
detached from the copies and attached to a single copy of this Agreement to physically form one
original document, which may be recorded without an attached copy of the Lease.

          15.7 If any legal action or proceeding is commenced to interpret or enforce the terms of this
Agreement or obligations arising out of it, or to recover damages for the breach of the Agreement,
the party prevailing in such action or proceeding shall be entitled to recover from the
non-prevailing party or parties all reasonable attorneys’ fees, costs, and expenses it has
incurred.

          15.8 Unless the context clearly requires otherwise, (a) the plural and singular numbers will
each be deemed to include the other; (b) the masculine, feminine, and neuter genders will each be
deemed to include the others; (c) “shall,” “will,” “must,” “agrees,” and “covenants” are each
mandatory; (d) “may” is permissive; (e) “or” is not exclusive; and (f) “includes” and “including”
are not limiting.

(Signature Page Follows)

EXHIBIT E-6

 

 

Executed on the date first above written.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[                                        ],	 	 	 
	 	 	a [                                        ]	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TENANT:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ILLUMINA, INC.,	 	 	 	 
	 	 	a Delaware corporation	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Accepted and Agreed To:	 
	 
	 	 	 	 	 	 	 	 
	 	 	BMR-9865 TOWNE CENTRE DRIVE LLC,	 	 
	 	 	a Delaware limited liability company	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	BIOMED REALTY, L.P.,	 	 
	 

	 	 	 	a Maryland limited partnership its Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

EXHIBIT E-7

 

 

ACKNOWLEDGMENTS

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On                      before me,                                         , a Notary Public,
personally appeared                                         , personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacit(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature of Notary Public	 	 

(This area for official notarial seal)

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On                      before me,                                         , a Notary Public,
personally appeared                                         , personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacit(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature of Notary Public	 	 

(This area for official notarial seal)

EXHIBIT E-8

 

 

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

     On                     before me,                                         , a Notary Public,
personally appeared                                         , personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacit(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature of Notary Public	 	 

(This area for official notarial seal)

EXHIBIT E-9

 

 

EXHIBIT A

LEGAL DESCRIPTION

(See Attached)

EXHIBIT E-10

 

 

EXHIBIT F

RECIPROCAL EASEMENT AGREEMENT

RECORDING REQUESTED BY:

BMR-9865 Towne Centre Drive LLC

General Counsel / Finance Department

17140 Bernardo Center Drive, Suite 222

San Diego, CA 92128

 

SPACE ABOVE LINE FOR RECORDER’S USE ONLY

RECIPROCAL EASEMENT AND COVENANT AGREEMENT

     This RECIPROCAL EASEMENT AND COVENANT AGREEMENT (together with all exhibits attached hereto
and by this reference incorporated herein, this “Agreement”) is made and entered into as of
   , 2007 (the “Effective Date”), by and between BMR-9885 TOWNE
CENTRE DRIVE LLC, a Delaware limited liability company (together with its successors and assigns,
the “Parcels 1&2 Owner”), whose address is 17140 Bernardo Center Drive, Suite 222, San
Diego, California 92128 and BMR-9865 TOWNE CENTRE DRIVE LLC, a Delaware limited liability company
(together with its successors and assigns, the “Parcel 3 Owner” and, together with the
Parcels 1&2 Owner, the “Owners”)), whose address is 17140 Bernardo Center Drive, Suite 222,
San Diego, California 92128.

RECITALS

     A. WHEREAS, the Parcels 1&2 Owner owns three (3) parcels of real property located in the City
of San Diego, County of San Diego, State of California, legally described as: (1) Parcel 1 of
Parcel Map 18286 filed with the San Diego County Recorder on June 21, 1999 (together with any
easements and appurtenances thereto, the “Parcel 1 Land”); (2) Parcel 2 of Parcel Map 18286
filed with the San Diego County Recorder on June 21, 1999 (together with any easements and
appurtenances thereto, the “Parcel 2 Land” and, together with the Parcel 1 Land, the
“Parcels 1&2 Land”); and (3) Parcel 3 of Parcel Map 18286 filed with the San Diego County
Recorder on June 21, 1999 (together with any easements and appurtenances thereto, the “Parcel 3
Land” and, collectively with the Parcel 1 Land and the Parcel 2 Land, the “Parcels”).
The Parcels 1&2 Land is improved by two (2) buildings consisting of approximately 104,870 square
feet of space (the “Parcels 1&2 Building”), and the Parcel 3 Land is improved by one (1)
building consisting of approximately 11,000 square feet of space (the “Parcel 3 Building”).

     B. WHEREAS, concurrently herewith, the Parcels 1&2 Owner is conveying to the Parcel 3 Owner
all of its right, title and interest in the Parcel 3 Land, together with the Parcel 3 Building.

     C. WHEREAS, the Parcel 3 Owner intends to construct an additional building on the Parcel 3
Land (the “Additional Parcel 3 Building” and, collectively with the Parcels 1&2 Building
and the Parcel 3 Building, the “Buildings”), totaling approximately 83,866 rentable square
feet.

     D. WHEREAS, the Parcel 3 Land is improved by, among other things, a fitness center, a full
court basketball/sports courts, outdoor seating areas, dressing, locker and working rooms,
restrooms, and showers (the “Recreation Facilities”).

     E. WHEREAS, pursuant to that certain: (a) Amended and Restated Lease dated as of January 26,
2007 (the “Parcels 1&2 Lease”), the Parcels 1&2 Owner is leasing the Parcels 1&2 Building
to Illumina, Inc., a Delaware corporation (the “Parcels 1&2 Tenant”); (b) Lease dated as of
January 26, 2007 (the “Parcel 3 Lease”), the Parcel 3 Owner is leasing a portion of the
Parcel 3 Building and, upon completion, the Additional Parcel 3 Building, to Illumina, Inc., a
Delaware corporation (the “Parcel 3 Tenant”); and (c) Eastgate Pointe Building “D” Lease
dated as of July 6, 2000 (the “Diversified Lease”), Diversified Eastgate Pointe, LLC, a
California limited liability company (as successor in interest to Matsix Investments, Inc.,
“Diversified” and, together with the Parcels 1&2 Tenant and the Parcel 3 Tenant, the
“Tenants”), is leasing a portion of the Parcel 3 Building.

EXHIBIT F-1

 

 

     F. WHEREAS, the Parcels 1&2 Owner and the Parcel 3 Owner desire to grant each other and their
respective Tenants certain rights to use their respective Parcels, including access rights, parking
rights, and certain rights to use the Recreation Facilities, all in accordance with the following.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and accuracy of which is hereby acknowledged, the parties hereto hereby
agree as follows:

AGREEMENT

     1. Grant of Easement Rights, Etc.

          1.1 Grant by Parcels 1&2 Owner. Subject to the terms and conditions hereof: the
Parcels 1&2 Owner hereby grants, bargains, sells and conveys perpetually to the Parcel 3 Owner and
its successors in title, for the benefit of, and appurtenant to, the Parcel 3 Land, a
non-exclusive easement and right of way (the “Parcels 1&2 Driveway Easement”) for the
Parcel 3 Benefited Parties (as defined below) over, upon, through and across the portions of the
easement area described on Exhibit A attached hereto and incorporated hereby (the
“Parcels 1&2 Driveway Servient Tenement”), to be used in common with the Parcels 1&2
Benefited Parties (as defined below), for vehicular or pedestrian ingress, egress and access
(“Access”) to and from the public streets adjacent to the Parcel 3 Land.

          1.2 Grant by Parcel 3 Owner. Subject to the terms and conditions hereof: the Parcel 3
Owner hereby grants, bargains, sells and conveys perpetually to the Parcels 1&2 Owner and its
successors in title, for the benefit of, and appurtenant to, the Parcels 1&2 Land, the following
easements and licenses:

          (a) Parcel 3 Driveway Easement: a non-exclusive easement and right of way (the
“Parcel 3 Driveway Easement”) for the Parcels 1&2 Benefited Parties over, upon,
through and across the portions of the easement area described on Exhibit A attached
hereto and incorporated hereby (the “Parcel 3 Driveway Servient Tenement” and
together with the Parcels 1&2 Driveway Servient Tenement, the “Driveway Servient
Tenements”), to be used in common with the Parcel 3 Benefited Parties, for Access to and
from the public streets adjacent to Parcels 1&2 Land.

          (b) Parking Easement: from and after substantial completion of the Additional
Parcel 3 Building, a non-exclusive easement and right of way (the “Parking
Easement”) for the Parcels 1&2 Benefited Parties over, upon, through and across the
portions of the easement area and to use the parking spaces described on Exhibit B
attached hereto and incorporated hereby (the “Parking Servient Tenement”), to be
used in common with the Parcel 3 Benefited Parties, for vehicular parking and Access to the
Parcels 1&2 Land. The Parcel 3 Owner has the right to reasonably establish the location of
the pedestrian pathways in the Parking Servient Tenement so as to minimize (i) the impact on
the number of parking spaces within the Parcel 3 Land and (ii) the likely disruption to the
Parcel 3 Benefited Parties.

          (c) Recreation Facilities: a non-exclusive license (the “Recreation
Facilities License” and, collectively with the Parcel 3 Driveway Easement, the Parking
Easement and the Access Easement, the “Parcel 3 Easements” and, together with the
Parcels 1&2 Driveway Easement, the “Easements”)) for the Parcels 1&2 Benefited
Parties, to be used in common with the Parcel 3 Benefited Parties, to Access, use and enjoy
the Recreation Facilities located on the Parcel 3 Land. The Recreation Facilities License
shall include the right of ingress, egress and regress for pedestrian traffic over and
across any and all sidewalks, elevators, stairways, paths, valleys and lanes within Parcel 3
Land which provides reasonably direct access from the Parcels 1&2 Land to the Recreation
Facilities, as further described on Exhibit C attached hereto and incorporated
hereby (the “Recreation Facilities Servient Tenement” and, collectively with the
Parcel 3 Driveway Servient Tenement, and the Parking Servient Tenement, the “Parcel 3
Servient Tenements” and, together with the Parcels 1&2 Driveway Servient Tenement, the
“Servient Tenements”).

EXHIBIT F-2

 

 

          1.3 Temporary Parking Easement. In addition to the Parcel 3 Easements granted in
Section 1.2, the Parcel 3 Owner hereby grants, bargains, sells and conveys to the Parcels
1&2 Owner and its successors in title, for the benefit of, and appurtenant to, the Parcels 1&2
Land, a non-exclusive temporary easement and right of way (the “Temporary Parking
Easement”) for the Parcels 1&2 Benefited Parties over, upon, through and across the portions of
the easement area and to use the parking spaces and the pedestrian pathways described on
Exhibit D attached hereto and incorporated hereby (the “Temporary Parking Servient
Tenement”), to be used in common with the Parcel 3 Benefited Parties, for vehicular parking and
Access to the Parcels 1&2 Land. The Parcel 3 Owner has the right to reasonably establish the
location of the pedestrian pathways in the Temporary Parking Servient Tenement so as to minimize
(a) the impact on the number of parking spaces within the Parcel 3 Land and (b) the likely
disruption to the Parcel 3 Benefited Parties. The Temporary Parking Easement shall be irrevocable
until substantial completion of the Additional Parcel 3 Building (the “Additional Parcel 3
Building Substantial Completion Date”). During the term of the Temporary Parking Easement, the
Temporary Parking Easement shall be considered for all purposes under this Agreement as a “Parking
Easement.” Immediately upon the Additional Parcel 3 Building Substantial Completion Date, the
Temporary Parking Easement shall immediately terminate.

          1.4 In General. For purposes of this Agreement the following shall apply:

          (a) The term “Parcels 1&2 Benefited Parties” shall mean the Parcels 1&2 Owner,
the Parcels 1&2 Tenant, and any person from time to time entitled to the use and occupancy
of any portion of the improvements on the Parcel 3 Land as an owner or under any lease,
sublease, license, concession or other similar agreement, and any of their officers,
directors, members, employees, agents, contractors, customers, vendors, suppliers, visitors,
guests, invitees, licensees, tenants, subtenants and concessionaires.

          (b) The term “Parcel 3 Benefited Parties” shall mean the Parcel 3 Owner, the
Parcel 3 Tenant, Diversified, and any person from time to time entitled to the use and
occupancy of any portion of the improvements on the Parcels 1&2 Land as an owner or under
any lease, sublease, license, concession or other similar agreement, and any of their
officers, directors, members, employees, agents, contractors, customers, vendors, suppliers,
visitors, guests, invitees, licensees, tenants, subtenants and concessionaires.

          (c) The term “Benefited Parties” shall mean the Parcels 1&2 Benefited Parties
and the Parcel 3 Benefited Parties.

          (d) The Easements are not exclusive. Without limiting the generality of the foregoing,
each Owner may also use their property for any purposes which does not unreasonably
interfere with such uses by the other Owner, and/or convey easements appurtenant or in gross
upon, under, over and across their property to other persons, public and private, for the
same purposes as the other Owner’s use thereof, and for other purposes which do not
unreasonably interfere with such uses by the other Owner, without necessity for further
consent or documentation of any kind by such Owner.

          (e) This Agreement, and the protective covenants, conditions, restrictions, grants of
easements, licenses, rights, rights-of-way, liens, charges and equitable servitudes set
forth therein or herein, shall, except as otherwise expressly provided therein or herein,
(a) be irrevocable and perpetual in nature (other than the Temporary Parking Easement), (b)
be binding upon all persons having or acquiring any right, title or interest in any property
encumbered thereby, or any part thereof, and upon any successors or assigns to any such
right, title or interest, (c) inure to the benefit of all persons having or acquiring any
right, title or interest in any properties benefited thereby, or any part thereof, and upon
any successors or assigns to any such right, title or interest, and (d) constitute covenants
running with the land pursuant to applicable law, including without limitation Section 1468
of the Civil Code of the State of California.

          (f) The Parcel 3 Easements shall be appurtenant to and shall run with fee title to the
Parcels 1&2 Land. The Parcels 1&2 Driveway Easement shall be appurtenant to and shall run
with fee title to the Parcel 3 Land.

EXHIBIT F-3

 

 

          (g) Nothing herein contained shall be deemed to be a gift or dedication of any rights
in any Parcels to or for the benefit of the general public or for any public purposes
whatsoever, it being the intention of the parties hereto that this Agreement shall be
strictly limited to and for the purposes herein expressed.

     2. Covenants of the Parcels 1&2 Owner. The Parcels 1&2 Owner covenants and agrees as
follows:

          2.1 Injury, Damage, and Indemnification. The Parcels 1&2 Owner shall exercise its
rights and perform its obligations under this Agreement so as to reasonably minimize interference
with the use of the Parcel 3 Land or unreasonably disturb any of the Parcel 3 Benefited Parties,
including any construction or alteration work undertaken by the Parcel 3 Owner on the Parcel 3
Land. Subject to Section 6.4, if, in entering any of the Parcel 3 Servient Tenements, any
of the Parcels 1&2 Benefited Parties causes any damage other than ordinary wear and tear, to
landscaping, pavement, site improvements, or other real or personal property located on the Parcel
3 Land, or causes any injury to any person, whether such damage, release, or injury is intentional
or unintentional, then the Parcels 1&2 Owner shall:

               (a) promptly reimburse the Parcel 3 Owner the cost to repair any and all physical damage as
necessary to substantially restore the affected area to the condition that existed immediately
before such physical damage; and

               (b) indemnify, defend, and hold harmless the Parcel 3 Owner from and against any and all
demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or
judgments, and all expenses (including, without limitation, attorneys’ fees, mechanic’s liens,
charges and disbursements) incurred in investigating or resisting the same (collectively,
“Claims”) resulting from such damage or injury in accordance with Section 8.

          2.2 No Change of Use. The Parcels 1&2 Owner shall not permit or create a substantial,
permanent or indefinite change in its use of the Parcels 1&2 Driveway Easement.

     3. Covenants of the Parcel 3 Owner. The Parcel 3 Owner covenants and agrees as
follows:

          3.1 Injury, Damage, and Indemnification. Subject to Section 6.4, if, in
entering the Parcels 1&2 Driveway Servient Tenement, any of the Parcel 3 Benefited Parties cause
any damage other than ordinary wear and tear, to landscaping, pavement, site improvements, or other
real or personal property located on the Parcels 1&2 Driveway Servient Tenement, or causes any
injury to any person, whether such damage, release, or injury is intentional or unintentional, then
the Parcel 3 Owner shall:

               (a) promptly reimburse the Parcels 1&2 Owner the cost to repair any and all physical damage as
necessary to substantially restore the affected area to the condition that existed immediately
before such physical damage; and

               (b) indemnify, defend, and hold harmless the Parcels 1&2 Owner from and against any and Claims
resulting from such damage or injury in accordance with Section 8.

          3.2 No Change of Use. The Parcel 3 Owner shall not permit or create a substantial,
permanent or indefinite change in its use of the Parcel 3 Easements other than in connection with
the construction of the Additional Parcel 3 Building.

     4. Maintenance and Repair of Servient Tenements.

          4.1 Maintenance of Servient Tenements.

               (a) General Provisions.

          (i) As used in this Agreement, the term “Maintenance” (or as a verb, to
“Maintain”) means maintain, repair, sweep, and otherwise operate the Servient
Tenements, as applicable, so that at all times the Servient Tenements, as applicable, are in
a reasonable condition and state of reasonable repair sufficient for use in accordance with
this Agreement.

EXHIBIT F-4

 

 

          (ii) As used in this Agreement, the term “good condition and repair” means in a
condition which is not less than the condition of such Servient Tenement on the date on
which this Agreement was initially recorded, normal wear and tear excepted.

     (b) Driveway Servient Tenements. The Parcels 1&2 Owner and the Parcel 3 Owner
shall each, at their respective cost and expense, Maintain all paved surfaces within the
portion of the Driveway Servient Tenement on its respective parcel of land with a paved
surface and in a smooth, clean, orderly, safe and good state of repair and condition.

     (c) Parking Servient Tenement. The Parcel 3 Owner shall on a timely basis
perform all Maintenance for the Parking Servient Tenement at the Parcel 3 Owner’s sole cost
and expense. The Parking Servient Tenement shall be maintained in good condition and
repair, including all paved surfaces within the portion of the Parking Servient Tenement
with a paved surface and in a smooth, clean, orderly, safe and good state of repair and
condition. The Parcel 3 Owner shall make all repairs or replacements of, in, on, under,
within, upon or about such, property, whether said repairs involve ordinary or extraordinary
repairs or replacements, necessary to keep the same in safe and good operating and
condition, howsoever the necessity or desirability thereof may arise, and whether or not
necessitated by wear, tear, obsolescence, defects or otherwise.

     (d) Recreation Facilities.

          (i) The Parcel 3 Owner shall on a timely basis perform all Maintenance for the
Recreation Facilities Servient Tenement at the Parcel 3 Owner’s sole cost and expense. The
Recreation Facilities Servient Tenement shall be maintained in good condition and repair,
including all paved surfaces within the portion of the Recreation Facilities Servient
Tenement with a paved surface and in a smooth, clean, orderly, safe and good state of repair
and condition

          (ii) The Parcel 3 Owner shall on a timely basis Maintain in good condition and repair
and make all repairs or replacements of, in, on, under, within, upon or about such,
Recreation Facilities, whether said repairs or replacements are to the interior or exterior
thereof, or structural or non-structural components thereof, or involve ordinary or
extraordinary repairs or replacements, necessary to keep the same in safe and good operating
and condition, howsoever the necessity or desirability thereof may arise, and whether or not
necessitated by wear, tear, obsolescence, defects or otherwise. In the event the Parcel 3
Owner decides to replace any of the Recreation Facilities, the Parcel 3 Owner shall replace
such Recreation Facilities with Recreation Facilities substantially equivalent or better and
providing substantially the same quality of service or better.

          (iii) No material changes in the improvements or use of the Recreation Facilities shall
be permitted without the prior written approval of Parcels 1&2 Owner, which consent shall
not be unreasonably withheld, conditioned or delayed.

          4.2 Waste. Neither the Parcels 1&2 Owner nor the Parcel 3 Owner shall suffer or
commit, and shall use all reasonable precaution to prevent, waste to any of their respective
Servient Tenements.

          4.3 Failure to Maintain the Servient Tenements. If an Owner shall fail to perform the
Maintenance of its respective Servient Tenements as set forth in Section 4.1, the other
Owner shall have the right, but not the obligation, (a) following thirty (30) days’ written notice
and opportunity to cure (or such longer period as may be necessary to cure such failure if such
default cannot be completed within such period provided such Owner commences to cure within said
thirty (30) day period and thereafter diligently prosecutes such cure to completion), or (b) in the
case of any facts or circumstances that create an imminent risk of damage to such Servient
Tenements or injury to, or death of, persons, without written notice, to perform such Maintenance
as it deems reasonable and necessary. Upon written demand, the Owner in default shall reimburse
the other Owner for the reasonable costs incurred by it in performing such Maintenance. Such
written demand for payment shall include a statement of costs and reasonable detail of expenses.

EXHIBIT F-5

 

 

          4.4 Damage or Destruction. Subject to Section 4.5, if any portion of the
Servient Tenements are damaged by fire or other perils, then the Owner of such Servient Tenements
shall, at such Owner’s sole cost and expense, commence and proceed diligently with the work of
repair, reconstruction and restoration of such Servient Tenements, in as timely a manner as
practicable under the circumstances.

          4.5 Condemnation. Notwithstanding anything to the contrary set forth herein, neither
Owner shall have any obligation to restore, reconstruct or replace any of the Servient Tenements
located on its property in the event that such Servient Tenements is taken pursuant to a
condemnation (or similar) action by a governmental or quasi-governmental entity. In any of such
events, this Agreement shall automatically terminate without the need for any further action by any
Owner as to such Servient Tenements that has been affected by such casualty or condemnation.

          4.6 Compliance with Law. Each Owner and each Benefited Party shall, at its sole cost
and expense, promptly comply with all federal, state and local laws, ordinances, regulations,
codes, rules, orders and safety guidelines pertaining to this Agreement, the Parcels 1&2 Land, the
Parcel 3 Land, or any other matter within the scope of this Agreement (collectively,
“Laws”) and all recorded documents or recorded amendments thereto affecting the Parcels or
any portion thereof, and with the requirements of any board of fire underwriters or other similar
body now or hereafter constituted relating to or affecting the condition, use or occupancy of the
Parcels.

          4.7 Rules and Regulations. The Parcel 3 Owner may establish and modify, from time to
time, reasonable rules and regulations (the “Rules and Regulations”) governing the use of
the Recreation Facilities. The Parcels 1&2 Owner covenants and agrees to use commercially
reasonable efforts to cause the Parcels 1&2 Benefited Parties to comply with all applicable Rules
and Regulations. The Parcel 3 Owner shall have the right to refuse to allow any of the Parcels 1&2
Benefited Parties access to the Recreation Facilities if such Parcels 1&2 Benefited Party has not
complied with the applicable Rules and Regulations after receiving written notice of such failure
to comply.

          4.8 Use of Easements.

          (a) The use of the Easements by the parties hereto shall be expressly conditioned upon
the compliance by such parties with each of the terms and conditions specified in this
Agreement (including, but not limited to, the applicable Rules and Regulations), which Rules
and Regulations shall be uniformly applied by the parties hereto to all Benefited Parties
without discrimination.

          (b) No fence or other barrier shall be erected or permitted within or across any
portion of the Driveway Servient Tenements or the Parking Servient Tenement which would
prevent or obstruct the passage of pedestrian or vehicular travel; provided, however, that
the foregoing shall not prohibit the temporary erection of barricades which are reasonably
necessary for security and/or safety purposes in connection with the construction of the
Additional Parcel 3 Building, provided that all such work shall be conducted to reasonably
minimize the interference with the use of such Servient Tenement, and such work shall be
diligently prosecuted to completion.

          (c) Access Cards. Notwithstanding any other provision of this Agreement, the
Parcel 3 Owner shall have the right to restrict access to the Recreation Facilities located
in the Parcel 3 Building, subject to the provisions of this Section 4.8:

               (i) The access to the Recreation Facilities if locked, shall incorporate into their
design a system of being opened by an access card, entry key, remote control mechanism or
other similar controlled access device (an “Access Card”). The Parcel 3 Owner shall
provide to the Parcels 1&2 Owner a reasonable initial supply of Access Cards (the
reasonableness of such supply to be measured in terms of the number of Parcels 1&2 Benefited
Parties that will be accessing the Recreation Facilities). The Parcel 3 Owner further shall
provide any additional Access Cards reasonably required by the Parcels 1&2 Owner from time
to time, and the Parcels 1&2 Owner shall reimburse the Parcel 3 Owner for the actual cost
thereof.

EXHIBIT F-6

 

 

               (ii) The Parcels 1&2 Owner shall maintain a list of those Parcels 1&2 Benefited Parties
to whom Access Cards have been provided, and the Parcels 1&2 Owner shall provide copies of
such lists from time to time upon request to the Parcel 3 Owner.

               (iii) The intent of the foregoing is that the scope of the access, ingress and egress rights
enjoyed by the Parcels 1&2 Owner of the Recreation Facilities shall not be diminished by the
provisions of this Section 4.8 except that exercise of such rights of the Recreation
Facilities may be controlled by the Access Cards so long as the Parcel 3 Owner provides the Parcels
1&2 Owner with Access Cards that operate in the manner described in this Section 4.8.

     5. Construction of Additional Parcel 3 Building: Before the Parcel 3 Owner commences
any construction of the Additional Parcel 3 Building, the Parcel 3 Owner agrees to coordinate and
discuss any necessary security precautions or restrictions to the Easements necessary to protect
the Parcels 1&2 Benefited Parties in connection with the Parcels 1&2 Benefited Parties’ use of the
Parcel 3 Easements. The Parcel 3 Owner shall have the ability to relocate the Parcel 3 Easements
at its own expense to any other location on the Parcel 3 Land so long as relocation shall continue
to reasonably provide Access to the Recreation Facilities or the Parcels 1&2 Land, as applicable.

     6. Insurance: The Owners shall procure and maintain the following insurance:

          6.1 Insurance. Each Owner shall, at its own cost and expense, procure and maintain in
effect, a comprehensive public liability insurance with limits of not less than Five Million
Dollars ($5,000,000) per occurrence for death or bodily injury and property damage with respect to
the their respective Parcel. Such insurance policies shall name the other Owner, BioMed Realty,
L.P., BioMed Realty Trust, Inc., and Mortgagees as additional insureds.

          6.2 Insurance Provisions. Each policy described in this Section 6 shall
provide that the knowledge or acts or omissions of any insured party shall not invalidate the
policy as against any other insured party or otherwise adversely affect the rights of any other
insured party under any such policy; (ii) shall provide (except for liability insurance described
in Section 6.1, for which it is inapplicable) by endorsement or otherwise, that the
insurance shall not be invalidated should any of the insureds under the policy waive in writing
prior to a loss any or all rights of recovery against any party for loss occurring to the property
insured under the policy, if such provisions or endorsements are available and provided that such
waiver by the insureds does not invalidate the policy or diminish or impair the insured’s ability
to collect under the policy, or unreasonably increase the premiums for such policy unless the party
to be benefited by such endorsement or provision pays such increase; (iii) shall provide for a
minimum of thirty (30) days’ advance written notice of the cancellation, non-renewal or material
modification thereof to all insureds thereunder; (iv) shall include a standard mortgagee
endorsement and loss payable clause in favor of the Mortgagees reasonably satisfactory to them; and
(v) shall not include a co-insurance clause.

          6.3 Limits of Liability. Insurance specified in this Section 6 shall be
jointly reviewed by the Owners periodically at the request of any Owner, but no review will be
required more often than annually, to determine if such limits, deductible amounts and types of
insurance are reasonable and prudent in view of the type, place and amount of risk to be
transferred and the financial responsibility of the insureds, and to determine whether such limits,
deductible amounts and types of insurance comply with the requirements of all applicable Laws and
whether on a risk management basis, additional types of insurance or endorsements against special
risks should be carried or whether required coverages or endorsements should be deleted. In
connection with such periodic review, each Owner shall make reasonably available to the other any
Mortgagee (as defined below) insurance requirements that apply to such Owner. Limits of liability
may not be less than limits required by Mortgagees. Such limits shall be increased or decreased,
deductible amounts increased or decreased or types of insurance shall be modified, if justified,
based upon said review, and upon any such increase, decrease or modification, the Owners shall, at
any Owners election, execute an instrument in recordable form confirming such increase, decrease or
modification, which any Owner may record with the San Diego County Recorder’s Office as a
supplement to this Agreement.

EXHIBIT F-7

 

 

          6.4 Waiver. Provided that such a waiver does not invalidate the respective policy or
policies or diminish or impair the insured’s ability to collect under such policy or policies, each
Owner hereby waives all claims for recovery from the other Owner for any loss or damage to any of
its property insured (or required hereunder to be insured) under valid and collectible insurance
policies to the extent of any recovery collectible (or which would have been collectible had such
insurance required hereunder been obtained) under such insurance policies plus any deductible
amounts.

          6.5 Delegate. Each Owner shall have the right to delegate its obligations under this
Section 6 to its respective Tenants.

     7. Reimbursements: Any reimbursements due to a Owner from the other Owner which are
not paid within fifteen (15) days of receipt of any invoice therefore shall bear interest at a rate
equal to the prime rate, as published in The Wall Street Journal from time to time, plus three
percent (3%) per annum, not to exceed the highest rate allowed by law. If The Wall Street Journal
no longer publishes such prime rate, then the Parcel 3 Owner shall reasonably designate a
substitute publication that is nationally recognized as an authoritative source for interest rate
information.

     8. Indemnification: Subject to Section 6.4, each Owner (hereinafter as used
in this Section 8, the “Indemnifying Owner”) covenants and agrees, at its sole cost
and expense, to indemnify, defend and hold harmless the other Owner (hereinafter as used in this
Section 8.1, the “Indemnitee”) from and against any and all Claims, against
Indemnitee, for losses, liabilities, damages, judgments, costs and expenses by or on behalf of any
Person other than the Indemnitee, arising from: (a) the Indemnifying Owner’s negligent use,
possession or management of the Indemnifying Owner’s property or activities therein; and (b) the
Indemnifying Owner’s or any of such Indemnifying Owner’s Benefited Parties use, exercise or
enjoyment of the applicable Easements, except to the extent caused by the Indemnitee’s gross
negligence or willful misconduct. Notwithstanding anything to the contrary in this Section
8.1, the Parcel 3 Owner shall have no responsibility to the Parcels 1&2 Owner for any Claims
arising out of, caused by, or resulting from any of the Parcels 1&2 Benefited Parties’ use of the
Recreation Facilities or the negligence of any of the Parcel 3 Benefited Parties in connection with
the operation and maintenance of such Recreation Facilities.

     9. Remedies. In the event of any breach, violation, or failure to perform or satisfy
any of the duties or obligations contained in this Agreement (including without limitation using
any Servient Tenement in any manner not permitted by this Agreement), the Owner to which such duty
or obligation is owed shall have the right to provide written notice to the affecting Owner
describing in reasonable detail the nature of the breach, violation or failure. If such breach,
violation or failure is not cured within thirty (30) days after delivery of such notice, the Owner
delivering the notice shall have the right to enforce all easements, rights, rights-of-way, charges
and equitable servitudes now or hereafter imposed pursuant to this Agreement. Any court hearing a
dispute with respect to such alleged breach shall have the power to award all rights and remedies
available at law or in equity; provided, however, that no breach of this Agreement by a Owner shall
entitle any other Owner to cancel, rescind or terminate the rights granted to the breaching Owner
hereunder; and provided further that such complaining Owner shall have the right (a) to require the
breaching Owner to remedy the breach, and (b) in the event of a default in the payment of any
amount due and payable under this Agreement, either Owner, in addition to any other remedy provided
herein or by law, shall have the right to recover a money judgment for the amount due and payable,
including costs and reasonable attorneys’ fees.

     10. Limitation of Liability.

          10.1
Limitation of Liability. The liability under this Agreement of
an Owner shall be limited to and enforceable solely against the assets of such Owner constituting
an interest in the Parcels (including insurance and condemnation proceeds attributable to the
Parcels) and no other assets of such Owner.

          10.2 Transfer of Ownership. If an Owner shall sell, assign, transfer, convey or
otherwise dispose of its portion of the Parcel (other than as security for a loan to such Owner),
then (a) such Owner shall be entirely freed and relieved of any and all covenants and obligations
arising under this Agreement which accrue under this Agreement from and after the date such Owner
shall so sell, assign, transfer, convey or otherwise dispose of its interest in such portion of

EXHIBIT F-8

 

 

the Parcel, and (b) the person or entity who succeeds to Owner’s interest in such portion of
the Parcel shall be deemed to have assumed any and all of the covenants and obligations arising
under this Agreement of such Owner both theretofore accruing or which accrue under this Agreement
from and after the date such Owner shall so sell, assign, transfer, convey or otherwise dispose of
its interest in such Parcel.

     11. Miscellaneous

          11.1 Term. The covenants, conditions and restrictions contained in
this Agreement shall be enforceable by the Owners and their respective successors and assigns for
the term of this Agreement which shall be perpetual (or if the law provides for a time limit on any
covenant, condition, or restriction, then such covenant, condition or restriction shall be
enforceable for such shorter period permitted by law), subject to amendment as set forth in
Section 11.8. If the law provides for such shorter period, then upon expiration of such
shorter period, said covenants, conditions and restrictions shall be automatically extended without
further act or deed of the Owners, except as may be required by law, for successive periods of ten
(10) years, subject to amendment or termination as set forth in Section 11.8.

          11.2 Further Assurances. Each Owner shall each promptly upon request take such
further actions, and execute such further documents, as shall be reasonably necessary or
appropriate from time to time to implement and effectuate the intentions of the Owners as expressed
in this Agreement.

          11.3 Estoppel Certificates. At any time and from time to time, within fifteen (15)
days after written request by either Owner or any institutional mortgagee of an Owner, the Owner
receiving such a request shall deliver to the requesting Owner and/or institutional mortgagee a
statement in writing certifying that this Agreement is unmodified and in full force and effect (or
specifying each such modification), and stating whether or not there is any default in the
performance of any provision contained in this Agreement (and specifying each such default, if
any). If an Owner or institutional mortgagee shall fail or refuse to deliver such a statement
within such period, then as against such Owner or institutional mortgagee, this Agreement shall be
deemed to be in full force and effect with no defaults hereunder.

          11.4 Notices. Any notice, consent, demand, bill, statement or other communication
required or permitted to be given hereunder shall be in writing and shall be given by personal
delivery, overnight delivery with a reputable nationwide overnight delivery service, or certified
mail (return receipt requested), and if given by personal delivery, shall be deemed delivered upon
receipt; if given by overnight delivery, shall be deemed delivered one (1) day after deposit with a
reputable nationwide overnight delivery service; and, if given by certified mail (return receipt
requested), shall be deemed delivered three (3) business days after the time the notifying party
deposits the notice with the United States Postal Service. Any notices given pursuant to this
Agreement shall be sent to the following addresses or at such other single address within the
United States as a party may specify by notice to the other:

If to Parcels 1&2 Owner:

BMR-9885 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

Facsimile: (858) 985-9843

If to Parcel 3 Owner:

BMR-9865 Towne Centre Drive LLC

17140 Bernardo Center Drive, Suite 222

San Diego, California 92128

Attn: General Counsel/Real Estate

Facsimile: (858) 985-9843

          11.5 Governing Law; Modification. This Agreement shall be governed by, construed and
interpreted in accordance with the internal laws of the State of California, without reference to
choice of law principles.

EXHIBIT
F-9

 

 

          11.6 Third Party Beneficiaries. This Agreement is made and entered into for the sole
protection and benefit of the parties hereto, their successors and assigns, and no other person or
entity shall under any circumstances be deemed to be a beneficiary of any of the rights, remedies,
terms and provisions of this Agreement.

          11.7 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES
HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER
OF THIS AGREEMENT AND THE RELATIONSHIP BETWEEN THE PARTIES HERETO THAT IS BEING ESTABLISHED. THE
PARTIES HERETO ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT
EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE PARTIES HERETO
FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.

          11.8 Amendment. This Agreement may be amended or otherwise modified only in a writing
signed and acknowledged by the Parcels 1&2 Owner and the Parcel 3 Owner, or their respective
successors and assigns; provided, however, (a) for so long as the Parcels 1&2 Lease
is in full force and effect, any such amendment or modification shall be subject to: (i) the prior
written consent of the original named tenant under the Parcels 1&2 Lease, which consent pursuant to
Section 14.2.5 of the Parcels 1&2 Lease shall not be unreasonably withheld, conditioned or
delayed, and (ii) solely with respect to amendments or modifications that could reasonably be
expected to have a material adverse effect on obligations assumed by any successors and assigns of
the original named tenant under the Parcels 1&2 Lease, the prior written consent of any such
successors and assigns, which consent pursuant to Section 14.2.5 of the Parcels 1&2 Lease
shall not be unreasonably withheld, conditioned or delayed; and (b) for so long as the Parcel 3
Lease is in full force and effect, any such amendment or modification shall be subject to: (i) the
prior written consent of the original named tenant under the Parcel 3 Lease, which consent pursuant
to Section 17.7 of the Parcel 3 Lease shall not be unreasonably withheld, conditioned or
delayed, and (ii) solely with respect to amendments or modifications that could reasonably be
expected to have a material adverse effect on obligations assumed by any successors and assigns of
the original named tenant under the Parcel 3 Lease, the prior written consent of any such
successors and assigns, which consent pursuant to Section 17.7 of the Parcel 3 Lease shall
not be unreasonably withheld, conditioned or delayed. All amendments or modifications which result
in an increase of the costs and expenses to be incurred by such successor and assign under
Section 14.2.2 of the Parcels 1&2 Lease or Section 17.3 of the Parcel 3 Lease shall
be deemed material and adverse.

          11.9 No Partnership. Each of the parties to this Agreement agree that by this
Agreement no partnership, joint venture or other relationship is created other than a contractual
relationship to perform the obligations specifically and expressly stated in this Agreement.

          11.10 Notice to Mortgagee’s Rights of Mortgagee:

          (a) The term “Mortgage” as used herein shall mean any mortgage (or any trust
deed) of an interest in the Parcel given primarily to secure the repayment of money owed by
the mortgagor. The term “Mortgagee” as used herein shall mean the Mortgagee from
time to time under any such Mortgage (or the beneficiary under any such trust deed).

          (b) If a Mortgagee shall have served on the Owners, by personal delivery or by
registered or certified mail return receipt requested, a written notice specifying the name
and address of such Mortgagee, such Mortgagee shall be given a copy of each and every notice
required to be given by one party to the others at the same time as and whenever such notice
shall thereafter be given by one party to the others, at the address last furnished by such
Mortgagee. The address of any existing Mortgagee shall be as set forth in its consent to
subordination to be attached hereto in connection with such Mortgage. After receipt of such
notice from a Mortgagee, no notice thereafter

EXHIBIT F-10

 

 

given by either party shall be deemed to have been given unless and until a copy
thereof shall have been so given to the Mortgagee. If a Mortgagee so provides or otherwise
requires, and notice thereof is given by the Mortgagee as provided above:

          (i) A Mortgagee shall have the absolute right, but no duty or obligation, to cure or
correct a breach of this Agreement by the Owner whose property is secured by the Mortgagee’s
Mortgage within any applicable cure period provided for such breach by such mortgagor Owner
plus an additional period of twenty (20) days after notice to the Mortgagee of expiration of
the cure period allowed the mortgagor Owner before the other Owner may exercise any right or
remedy to which it may be entitled as a Benefitted Party, except exercise of a self-help
right in an emergency situation.

          (ii) Should any prospective Mortgagee require a modification or modifications of this
Agreement, which modification or modifications will not cause an increased cost or expense
to the Owner whose property is not subject to the Mortgage of such Mortgagee or in any other
way materially and adversely change the rights and obligations of such Owner, then and in
such event, such Owner agrees that this Agreement may be so modified and agrees to execute
whatever documents are reasonably required therefor and deliver the same to the other Owner
within ten (10) business days following written requests therefor by the other Owner or
prospective Mortgagee.

          11.11 Mortgagee Protection Provisions. No breach or violation of the terms of this
Agreement shall defeat or render invalid the lien of any Mortgage encumbering the Parcels 1&2 Land
or the Parcel 3 Land or any portions thereof; provided, however, that this Agreement and all
provisions hereof shall be binding upon and effective against any subsequent owner of the property
or portion thereof whose title is acquired by foreclosure, trustee’s sale, a deed in lieu, or other
remedies provided in such Mortgage, but such subsequent owners shall take title free and clear of
any of the previous owner’s violations of the terms of this Agreement that occurred before such
transfer of title or occupancy.

          11.12 Attorney’s Fees. In the event any legal action, proceeding or arbitration is
commenced to interpret or enforce the terms of, or obligations arising out of, this Agreement, or
to recover damages for the breach hereof, the party prevailing in any such action, proceeding or
arbitration shall be entitled to recover from the non-prevailing party all reasonable attorney’s
fees, costs and expenses incurred by the prevailing party.

          11.13 Counterparts. This Agreement may be executed in one or more counterparts, each
of which, when taken together, shall constitute one and the same document.

[Signature Page Follows]

EXHIBIT F-11

 

 

     IN WITNESS WHEREOF, the Owners have executed and delivered this Agreement as of the Effective
Date.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	PARCELS 1&2 OWNER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BMR-9885 TOWNE CENTRE DRIVE LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BIOMED REALTY, L.P.,
	 	 	 	 	a Maryland limited partnership
	 	 	 	 	its Member
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	PARCEL 3 OWNER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BMR-9865 TOWNE CENTRE DRIVE LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BIOMED REALTY, L.P.,
	 	 	 	 	a Maryland limited partnership
	 	 	 	 	its Member
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 

EXHIBIT F-12

 

 

ACKNOWLEDGMENTS

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

On
                                        
before me,                
    
                    
                    
                    

                                        ,
a Notary Public, personally appeared                                         , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

                            
                        

Signature of Notary Public

(This area for official notarial seal)

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

On                                          before me,                      
                  
                  
                  
                  

                  
                  ,
a Notary Public, personally appeared                                         , personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacit(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

                                        
      

Signature of Notary Public

(This area for official notarial seal)

EXHIBIT F-13

 

 

CONSENT OF PARCELS 1&2 TENANT

     THE UNDERSIGNED, as the tenant under that certain under that Lease (the “Parcels 1&2 Lease”),
as more particularly defined in Recital D of the foregoing Reciprocal Easement and Covenant
Agreement (“Agreement”) to which this Consent is attached, hereby (a) consents to the execution and
recording of the foregoing Agreement against the undersigned’s leasehold interest in the real
property subject to the Parcels 1&2 Lease, and (b) agrees that the Parcels 1&2 Lease is subject and
subordinate to the Agreement.

     Dated as of                                          , 2007.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ILLUMINA, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

EXHIBIT F-14

 

 

CONSENT OF PARCEL 3 TENANT

     THE UNDERSIGNED, as the tenant under that certain under that Lease (the “Parcel 3 Lease”), as
more particularly defined in Recital D of the foregoing Reciprocal Easement and Covenant Agreement
(“Agreement”) to which this Consent is attached, hereby: (a) consents to the execution and
recording of the foregoing Agreement against the undersigned’s leasehold interest in the real
property subject to the Parcel 3 Lease, and (b) agrees that the Parcel 3 Lease is subject and
subordinate to the Agreement.

     Dated as of                                          , 2007.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ILLUMINA, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

EXHIBIT F-15

 

 

CONSENT OF DIVERSIFIED

     THE UNDERSIGNED, as the tenant under that certain under that Eastgate Pointe Building “D”
Lease dated as of July 6, 2000 (the “Diversified Lease”), as more particularly defined in Recital D
of the foregoing Reciprocal Easement and Covenant Agreement (“Agreement”) to which this Consent is
attached, hereby consents to the execution and recording of the foregoing Agreement against the
undersigned’s leasehold interest in the real property subject to the Diversified Lease, and agrees
that the Diversified Lease is subject and subordinate to the Agreement.

     Dated as of                                         , 2007.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	DIVERSIFIED EASTGATE POINTE, LLC	 	 
	 	 	a California limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

EXHIBIT F-16

 

 

RECIPROCAL EASEMENT AND COVENANT AGREEMENT

EXHIBITS

	 	 	 
	Exhibit A

	 	Driveway Servient Tenement
	Exhibit B

	 	Parking Servient Tenement
	Exhibit C

	 	Recreation Facilities Servient Tenement
	Exhibit D

	 	Temporary Parking Servient Tenement

EXHIBIT F-17

 

 

EXHIBIT A

DRIVEWAY SERVIENT TENEMENT

TOWNE
CENTRE DRIVE

EXHIBIT F-18

 

 

EXHIBIT B

PARKING SERVIENT TENEMENT

TOWNE
CENTRE DRIVE

EXHIBIT F-19

 

 

EXHIBIT C

RECREATION FACILITIES SERVIENT TENEMENT

TOWNE
CENTRE DRIVE

EXHIBIT F-20

 

 

EXHIBIT D

TEMPORARY PARKING SERVIENT TENEMENT

TOWNE
CENTRE DRIVE

EXHIBIT F-21

 

 

EXHIBIT G

TEMPORARY CONSTRUCTION EASEMENT

TOWNE
CENTRE DRIVE

EXHIBIT G-1

 

 

SCHEDULE 1

RENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Expiration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Start Date	 	Date	 	SF	 	Annual $/SF	 	Annual Rent	 	Monthly Rent	 	Monthly $/SF
	 
	Execution

	 	8/17/2007
	 	 	104,870	 	 	$	37.12	 	 	$	3,893,226.97	 	 	$	324,435.58	 	 	$	3.09	 
	8/18/2007

	 	8/17/2008
	 	 	104,870	 	 	$	38.24	 	 	$	4,010,023.72	 	 	$	334,168.64	 	 	$	3.19	 
	8/18/2008

	 	8/17/2009
	 	 	104,870	 	 	$	39.39	 	 	$	4,130,324.46	 	 	$	344,193.71	 	 	$	3.28	 
	8/18/2009

	 	8/17/2010
	 	 	104,870	 	 	$	40.57	 	 	$	4,254,234.22	 	 	$	354,519.52	 	 	$	3.38	 
	8/18/2010

	 	8/17/2011
	 	 	104,870	 	 	$	41.78	 	 	$	4,381,861.25	 	 	$	365,155.10	 	 	$	3.48	 
	8/18/2011

	 	8/17/2012
	 	 	104,870	 	 	$	43.04	 	 	$	4,513,317.03	 	 	$	376,109.75	 	 	$	3.59	 
	8/18/2012

	 	8/17/2013
	 	 	104,870	 	 	$	44.33	 	 	$	4,648,716.52	 	 	$	387,393.04	 	 	$	3.69	 
	8/18/2013

	 	8/17/2014
	 	 	104,870	 	 	$	45.66	 	 	$	4,788,177.97	 	 	$	399,014.83	 	 	$	3.80	 
	8/18/2014

	 	8/17/2015
	 	 	104,870	 	 	$	45.60	 	 	$	4,782,072.00	 	 	$	398,506.00	 	 	$	3.80	 
	8/18/2015

	 	8/17/2016
	 	 	104,870	 	 	$	45.60	 	 	$	4,782,072.00	 	 	$	398,506.00	 	 	$	3.80	 
	8/18/2016

	 	8/17/2017
	 	 	104,870	 	 	$	47.88	 	 	$	5,021,175.60	 	 	$	418,431.30	 	 	$	3.99	 
	8/18/2017

	 	8/17/2018
	 	 	104,870	 	 	$	47.88	 	 	$	5,021,175.60	 	 	$	418,431.30	 	 	$	3.99	 
	8/18/2018

	 	8/17/2019
	 	 	104,870	 	 	$	50.27	 	 	$	5,272,234.38	 	 	$	439,352.87	 	 	$	4.19	 
	8/18/2019

	 	8/17/2020
	 	 	104,870	 	 	$	50.27	 	 	$	5,272,234.38	 	 	$	439,352.87	 	 	$	4.19	 
	8/18/2020

	 	8/17/2021
	 	 	104,870	 	 	$	52.79	 	 	$	5,535,846.10	 	 	$	461,320.51	 	 	$	4.40	 
	8/18/2021

	 	8/17/2022
	 	 	104,870	 	 	$	52.79	 	 	$	5,535,846.10	 	 	$	461,320.51	 	 	$	4.40	 
	8/18/2022

	 	8/17/2023
	 	 	104,870	 	 	$	55.43	 	 	$	5,812,638.40	 	 	$	484,386.53	 	 	$	4.62	 

SCHEDULE 1-1

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. Lease of Premises
	 	 	1	 
	2. Basic Lease Provisions
	 	 	1	 
	3. Term
	 	 	3	 
	4. Possession and Commencement Date
	 	 	3	 
	5. Rent
	 	 	3	 
	6. Rent Adjustments
	 	 	3	 
	7. Taxes
	 	 	3	 
	8. Security Deposit.
	 	 	5	 
	9. Use
	 	 	6	 
	10. Brokers
	 	 	8	 
	11. Holding Over
	 	 	8	 
	12. Property Management Fee
	 	 	9	 
	13. Condition of Premises
	 	 	9	 
	14. Regulations and Parking; Recreation Facilities
	 	 	9	 
	15. Utilities and Services
	 	 	10	 
	16. Alterations
	 	 	12	 
	17. Repairs and Maintenance
	 	 	14	 
	18. Liens
	 	 	16	 
	19. Indemnification and Exculpation
	 	 	17	 
	20. Insurance; Waiver of Subrogation
	 	 	18	 
	21. Damage or Destruction
	 	 	19	 
	22. Eminent Domain
	 	 	21	 
	23. Defaults and Remedies
	 	 	21	 
	24. Assignment or Subletting
	 	 	25	 
	25. Attorneys’ Fees
	 	 	27	 
	26. Definition of Landlord
	 	 	27	 
	27. Estoppel Certificate
	 	 	28	 
	28. Joint and Several Obligations
	 	 	28	 
	29. Limitation of Landlord’s Liability
	 	 	28	 
	30. Premises Control by Landlord
	 	 	29	 
	31. Construction; Quiet Enjoyment
	 	 	29	 
	32. Subordination and Attornment
	 	 	30	 

 

 

	 	 	 	 	 
	33. Surrender
	 	 	31	 
	34. Waiver and Modification
	 	 	31	 
	35. Waiver of Jury Trial and Counterclaims
	 	 	31	 
	36. Hazardous Materials
	 	 	31	 
	37. Miscellaneous
	 	 	33	 
	38. Option to Extend Term
	 	 	35	 
	39. Tenant’s Authority
	 	 	36	 
	40. Landlord’s Authority
	 	 	36	 
	41. Confidentiality
	 	 	36	 
	42. Excavation
	 	 	36	 
	43. Telecommunications Equipment
	 	 	36	 
	44. Access to Premises
	 	 	37	 
	45. Secured Areas
	 	 	37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]