Document:

Amended and Restated 1994 Equity Comp.

Exhibit 10.1 
 

ADOLOR CORPORATION 
AMENDED AND RESTATED 1994 EQUITY COMPENSATION
PLAN 
AS AMENDED DECEMBER 31, 2002 

 
Adolor
Corporation, a Delaware corporation, wishes to attract employees and consultants to the Company, to induce employees, Directors and consultants to remain with the Company, to encourage them to increase their efforts to make the Company’s
business more successful and to enhance stockholder value. In furtherance thereof, the Adolor Amended and Restated 1994 Equity Compensation Plan is designed to provide incentive and non-qualified stock options to employees, Directors and consultants
of the Company. 
 

	1.	 	DEFINITIONS. 

 
Whenever used herein and unless otherwise provided in the Optionee’s Grant Letter, the following terms shall have the meanings set
forth below: 
 
“Administrator” means the
Board, or a committee, the members of which shall be appointed by the Board as described in Section 3. 
 
“Approved Sale” means the approval, prior to the consummation of a Public Offering, by the holders of at least 50% of the Common
Stock (including voting and nonvoting shares voting as a single class) of (i) the merger or consolidation of the Company, (ii) the sale of all or substantially all of its assets or (iii) the sale of all or a majority of the outstanding capital stock
or my other similar transaction. 
 
“Board” means the Board of Directors of the Company. 
 
“Cause” means the Optionee’s (i) conviction for committing a felony under federal law or of the state in which such action occurred, (ii) dishonesty in the course of fulfilling his or
her employment duties or (iii) willful and deliberate failure to perform his or her employment duties in any material respect, or such other events as shall be determined by the Administrator. The Administrator shall have the sole discretion to
determine whether “Cause” exists, and its determination shall be final. 
 
“Change of Control” means the happening of any of the following after the consummation of a Public Offering: 
 
(i) any Person, other than (a) the Company or any of its Subsidiaries, (b) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, (d) a corporation owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (e) an Optionee or any “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) which includes the
Optionee), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired
directly from the Company or its Subsidiaries) representing more than 25% of either the then outstanding shares of 
 

Stock of the Company or the combined voting power of the Company’s then outstanding
securities; 
 
(ii) the individuals
who serve on the Board as of the effective date hereof (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, any person who becomes a director subsequent to the effective date
hereof, whose election or nomination for election was approved by a vote of at least a majority of the directors then constituting the Incumbent Board, shall for purposes of this clause (ii) be considered an Incumbent Director; 
 
(iii) the consummation of a merger or
consolidation of the Company in which the stockholders of the Company immediately prior to such merger or consolidation, would not, immediately after the merger or consolidation, beneficially own (as such term is defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing cash or securities in the merger or consolidation (or of its ultimate parent
corporation, if any); or 
 
(iv)
the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other
than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportion as
their ownership of the Company immediately prior to such sale. 
 
“Code” means the Internal Revenue Code of 1986, as amended. 
 
“Common Stock” means the Common Stock of the Company, par value $.0001 per share, either currently existing or authorized hereafter. 
 
“Company” means Adolor Corporation, a Delaware
corporation. 
 
“Director” means a member
of the Board who is not an employee of the Company or its Subsidiaries. 
 
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 
“Exercise Price” means the exercise price per Share of an Option. 
 
“Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a
national stock exchange, the closing sales price per Share on the exchange for the last preceding date on which there was a sale of Shares on such exchange, as determined by the Administrator, (ii) if Shares are not then listed on a national stock
exchange but are then traded on an over-the-counter market, the average of the closing bid and asked prices for the Shares in such over-the-counter market for the last preceding date on which there was a sale of such Shares in such market, as
determined by the Administrator, or (iii) if Shares are not then listed on a national stock exchange or traded on an over-the-counter market, or if the Administrator determines that the that the value as determined pursuant to Section (i) or (ii)
above does not 
 

2 

reflect fair market value, the Administrator shall determine fair market value after taking into account
such factors that it deems appropriate. 
 
“Grant Letter” means a written agreement in a form approved by the Administrator to be entered into by the Company and the Optionee as provided in Section 3. 
 
“Incentive Stock Option” means “incentive stock option” within the meaning of Section
422(b) of the Code. 
 
“Non-Qualified
Option” means an Option which is not intended to be an “incentive stock option” within the meaning of Section 422(b) of the Code. 
 
“Option” means the right to purchase, at the price and for the term fixed by the Administrator in accordance with the Plan, and
subject to such other limitations and restrictions in the Plan and the applicable Grant Letter, a number of Shares determined by the Administrator. 
 
“Optionee” means an employee or Director of or consultant to, the Company to whom an Option is granted, or the Successors of the
Optionee, as the context so requires. 
 
“Person” means any individual, partnership, corporation, company, limited liability company, association, trust, joint venture, unincorporated organization, entity or division, or any government, governmental department or
agency or political subdivision thereof. 
 
“Plan” means this Adolor Corporation Amended and Restated 1994 Equity Compensation Plan as amended from time to time. 
 
“Public Offering” means a successfully completed firm-commitment underwritten public offering (other than a Unit Offering, as
hereinafter defined) pursuant to an effective registration statement under the Securities Act in respect to the offer and sale of shares of Common Stock for the account of the Company resulting in aggregate net proceeds to the Company and any
stockholder selling shares of Common Stock in such offering of not less than $25 million. 
 
“Securities Act” means the Securities Act of 1933, as amended. 
 
“Shares” means shares of Common Stock of the Company. 
 
“Subsidiary” means any corporation (other than the Company) that is a “subsidiary
corporation” with respect to the Company under Section 424(f) of the Code. In the event the Company becomes a subsidiary of another company, the provisions hereof applicable to subsidiaries shall, unless otherwise determined by the
Administrator, also be applicable to any company that is a “parent corporation” with respect to the Company under Section 424(e) of the Code. 
 
“Successor of the Optionee” means: (i) the legal representative of the estate of a deceased Optionee or the person, (ii) persons
who shall acquire the right to exercise an Option by bequest or inheritance or other transfer or by reason of the death of the Optionee, (iii) if permitted by the Administrator in its sole discretion, any person who shall acquire the right to

 

3 

exercise an Option pursuant to any other transfer of the Option either pursuant to Section 12 hereof or
pursuant to Court Order or (iv) persons who shall acquire the right to exercise an Option on behalf of the Optionee as the result of a determination by a court or other governmental agency of the incapacity of the Optionee. 
 
“Termination of Service” means an Optionee’s
termination of employment or other service, as applicable, with the Company and its Subsidiaries. Cessation of service as an officer, employee, director or consultant shall not be treated as a Termination of Service if the Optionee continues without
interruption to serve thereafter in a material manner in another one (or more) of such other capacities, as determined by the Administrator in its sole discretion. 
 
“Unit Offering” means an underwritten public offering of a combination of debt securities and
Common Stock (or warrants or exchange rights to purchase Common Stock) of the Company in which not more than 15% of the gross proceeds received for the sale of such securities is attributed to Common Stock. 
 

	2.	 	EFFECTIVE DATE AND TERMINATION OF PLAN. 

 
The effective date of the amendment and restatement of the Plan is August 28, 2001. The Plan shall terminate on, and no Option shall be
granted hereunder on or after, the 10-year anniversary of the earlier of the approval of the Plan by (i) the Board or (ii) the stockholders of the Company; provided, however, that the Board may at any time prior to that date terminate the Plan.

 

	3.	 	ADMINISTRATION OF PLAN. 

 
(a) The Plan shall be administered by the Administrator, which shall be either the Board, or a Committee appointed by the Board, who
shall, on behalf of the Board, have full responsibility and authority to administer the Plan. The Administrator shall consist of at least two individuals each of whom shall be a “nonemployee director” as defined in Rule 16b-3 as
promulgated by the Securities and Exchange Commission under the Exchange Act and shall, at such times as the Company is subject to Section 162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought), qualify
as “outside directors” for purposes of Section 162(m) of the Code and related Treasury regulations. Notwithstanding the foregoing, the Board may designate one or more of its members or officers of the Company to serve as a secondary
committee and delegate to the secondary committee authority to grant Options to eligible individuals who are not subject to the requirements of Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The secondary committee shall have the
same authority with respect to selecting the individuals to whom such Options are granted and establishing the terms and conditions of such Options as the Administrator has under the terms of the Plan. 
 
(b) The acts of a majority of the members present at any
meeting of the Administrator at which a quorum is present, or acts approved in writing by a majority of the entire Administrator, shall be the acts of the Administrator for purposes of the Plan. If and to the extent applicable, no member of the
Administrator may act as to matters under the Plan specifically relating to such member. 
 

4 

 
(c) Subject to
the provisions of the Plan, the Administrator shall in its discretion as reflected by the terms of the Grant Letters (i) authorize the granting of Incentive Stock Options and Non-Qualified Options to employees, Directors and consultants of the
Company and its Subsidiaries; and (ii) determine the eligibility of an employee, Director or consultant to receive an Option subject to Section 4 hereof, (iii) specify whether such Option is an Incentive Stock Option or Non-Qualified Option and (iv)
determine the number of Shares to be covered under any Grant Letter, considering the position and responsibilities of the employee, Director or consultant, the nature and value to the Company of the employee’s, Director’s or
consultant’s present and potential contribution to the success of the Company whether directly or through a Subsidiaries and such other factors as the Administrator may deem relevant. 
 
(d) The Grant Letter shall contain such other terms, provisions and conditions not inconsistent herewith as
determined by the Administrator. The Optionee shall take whatever additional actions and execute whatever additional documents the Administrator may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more
of the obligations or restrictions imposed on the Optionee pursuant to the express provisions of the Plan and the Grant Letter . 
 

	4.	 	ELIGIBILITY. 

 
Any employee, Director or consultant of the Company or a Subsidiary who is designated by the Administrator as eligible to participate in
the Plan shall be eligible to receive an Option under the Plan. 
 

	5.	 	SHARES AND UNITS SUBJECT TO THE PLAN. 

 
(a) Subject to adjustments as provided in Section 16, the total number of Shares subject to Options granted under the Plan, in the
aggregate, may not exceed 5,350,000 Shares distributed under the Plan may be treasury Shares or authorized but unissued Shares. Any Shares that have been reserved for distribution in payment for Options but are later forfeited or for any other
reason are not payable under the Plan may again be made the subject of Options under the Plan. 
 
(b) The certificates for Shares issued hereunder may include any legend which the Administrator deems appropriate to reflect any restrictions on transfer hereunder or under the Grant
Letter            , or as the Administrator may otherwise deem appropriate. 
 
(c) In no event may any Optionee receive Options for more than 200,000 shares in any calendar year. The aggregate fair market value of the
shares on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under the Plan and under any other stock option plan of the Company shall not exceed $100,000.

 

	6.	 	GRANT OF OPTION. 

 
Subject to the other terms of the Plan, the Administrator shall, in its discretion as reflected by the terms of the applicable Grant
Letter: (i) determine and designate from time to time those eligible employees, Directors and consultants of the Company and its Subsidiaries to 
 

5 

whom Options are to be granted and the number of Shares to be optioned to each employee and consultant
(provided that Incentive Stock Options may only be granted to employees); (ii) determine the time or times when and the manner and condition in which each Option shall be exercisable and the duration of the exercise period; and (iii) determine or
impose other conditions to the grant or exercise of Options under the Plan as it may deem appropriate. 
 

	7.	 	OPTION PRICE. 

 
Unless otherwise determined by the Administrator as reflected in the Grant Letter, the Exercise Price shall not be less than 100% (or 110%
for Incentive Stock Options with respect to individuals described in Section 422(b)(6) of the Code (relating to 10% owners)) of the Fair Market Value of a Share on the day the Option is granted. 
 

	8.	 	TERM OF OPTIONS; VESTING AND EXERCISABILITY. 

 
(a) The Administrator shall establish the term of each Option, as set forth in the Grant Letter; provided that in no event shall any
Option have a term greater than 10 years from the date of grant (except that, in the case of an individual described in Section 422(b)(6) of the Code (relating to 10% owners), the term of any Incentive Stock Option shall be no more than five years
from the date of grant). Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its entirety upon the day after the last day of its term. The Option shall also expire, be forfeited and terminate at such times and in
such circumstances as otherwise provided hereunder or under the Grant Letter. 
 
(b) Each Option, to the extent that the Optionee has not had a Termination of Service and the Option has not otherwise lapsed, expired, terminated or been forfeited, shall vest according to the vesting
schedule which shall be determined in the sole and absolute discretion of the Administrator as set forth in the Grant Letter 
 
(c) The Grant Letter may, but need not, include a provision whereby the Optionee may elect at any time while still an employee of or a
consultant to the Company to exercise a Non-Qualified Option as to any part or all of the Shares subject to the Option prior to the full vesting of the Option. Any Shares so purchased (i) shall vest in accordance with the vesting schedule otherwise
applicable to the Option, (ii) shall be subject to a repurchase right in favor of the Company as provided in Section 9 below, and (iii) shall be subject to any other restriction the Company determines to be appropriate. 
 
(d) Notwithstanding the foregoing provisions of this Section
8, Options exercisable pursuant to the schedule set forth by the Administrator at the time of grant may be fully or more rapidly exercisable or vested, and Shares subject to such schedule may be fully or more rapidly vested, at any time in the
discretion of the Administrator. Upon and after the death of an Optionee, such Optionee’s Options, if and to the extent otherwise exercisable hereunder or under the applicable Grant Letter after the Optionee’s death, may be exercised by
the Successors of the Optionee. 
 

6 

	9.	 	EXERCISABILITY UPON AND AFTER TERMINATION OF OPTIONEE. 

 

	 	9.1.	 	Termination on Retirement, Disability, Death or without Cause. 

 
Unless otherwise provided in the applicable Grant Letter, if an Optionee has a Termination of Service other
than a Termination of Service due to death or for cause, the unexercised and vested portion of such Optionee’s Option will remain exercisable by the Optionee, the Optionee’s estate, the persons who acquired the right to exercise the Option
by bequest or inheritance, as applicable, for a period of 90 days following such Termination of Service, but in no event later than the last day of the term of the Option. Such portion of the Option shall terminate to the extent not exercised within
such period. Unless otherwise provided in the Grant Letter, upon such a Termination of Service, any unvested portion of an Option will terminate and will be forfeited, and any Shares purchased pursuant to Section 8(c) above which are unvested at the
time of such Termination of Service shall be subject to a repurchase right in favor of the Company for a price equal to the lesser of (x) the Exercise Price of the Shares or (y) the Fair Market Value of such Shares on the date of repurchase, which
right must be exercised by the Company within 90 days of such Termination of Service; provided that if the Company does not exercise such right within such 90-day period, the Optionee shall become fully and immediately vested in such Shares.

 

	 	9.2.	 	Termination for Cause. 

 
If an Optionee has a Termination of Service on account of a termination for Cause, any Option held by the Optionee will immediately expire
on the date of such Termination of Service, and the Company has the right (but not the obligation to) repurchase any unvested or vested Shares held by the Optionee for a price equal to the lesser of (x) the Option Price of the Shares or (y) the Fair
Market Value of the Shares on the date of repurchase; provided such right must be exercised within six months of the applicable Termination of Service, and provided, further, that if the Company does not exercise such right within such six-month
period, the Optionee shall become fully and immediately vested in such Shares. 
 

	 	9.3.	 	Termination due to Optionee’s Death. 

 
Unless otherwise provided in the applicable Grant Letter, if an Optionee has a Termination of Service due to the Optionee’s death or
if the Optionee dies within the 90-day period following any Termination of Service other than a Termination for Cause, the unexercised and vested portion of such Optionee’s Option will remain exercisable by the Optionee’s estate or the
persons who acquired the right to exercise the Option by bequest or inheritance, as applicable, until one year from the date of death but in no event later than the last day of the term of the Option. Such portion of the Option shall terminate to
the extent not exercised within such period. Unless otherwise provided in the Grant Letter            , upon such Termination of Service, any unvested portion of an Option will terminate
and will be forfeited, and any Shares purchased pursuant to Section 8(c) above which are unvested at the time of such Termination of Service shall be subject to a repurchase right in favor of the Company for a price equal to the lesser of (x) the
Exercise Price of the Shares or (y) the Fair Market Value of such Shares on the date of repurchase, which right must be exercised by the Company within 90 days of such Termination 
 

7 

of Service; provided that if the Company does not exercise such right within such 90-day period, the
Optionee shall become fully and immediately vested in such Shares. 
 

	 	9.4.	 	In General. 

 
Except as may otherwise be expressly set forth in Section 8 or this Section 9 or as may otherwise be expressly provided under the Grant
Letter, no provision of this Section 9 is intended to or shall permit the exercise of the Option to the extent the Option was not exercisable upon the Termination of Service. 
 

	10.	 	EXERCISE OF OPTIONS; PAYMENT. 

 

	 	10.1.	 	Notice of Exercise. 

 
(a) Subject to vesting and other restrictions provided for hereunder or otherwise imposed in accordance herewith, an Option may be
exercised, and payment in full of the aggregate Exercise Price made, by an Optionee only by written notice (in the form prescribed by the Administrator) to the Company specifying the number of Shares to be purchased. 
 
(b) Without limiting the scope of the Administrator’s
discretion hereunder, the Administrator may impose such other restrictions on the exercise of Incentive Stock Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate. 
 
(c) If Shares acquired upon the exercise of an Incentive Stock
Option are disposed of in a disqualifying disposition within the meaning of Section 422 of the Code by an Optionee prior to the expiration of either two years from the date of grant of such Option or one year from the transfer of Shares to the
Optionee pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Optionee shall notify the Company in writing as soon as practicable thereafter of the date and terms of
such disposition and, if the Company (or any affiliate thereof) thereupon has a tax withholding obligation, shall pay to the company (or such affiliate) an amount equal to any withholding tax the Company (or affiliate) is required to pay as a result
of the disqualifying disposition. 
 

	 	10.2.	 	Form of Payment. 

 
(a) The aggregate Exercise Price shall be paid in full upon the exercise of the Option. Payment must be made by one of the following
methods: 
 
(i) cash or a certified
or bank cashier’s check; 
 
(ii) the proceeds of a Company loan program or third party sale program or a note acceptable to the Administrator given as consideration under such a program, in each case if permitted by the Administrator in its discretion, if such
a program has been established and the Optionee is eligible to participate therein; 
 

8 

 
(iii) if approved by the Administrator in its discretion Shares of previously owned Common Stock having an aggregate Fair Market Value on the date of exercise equal to the aggregate Option Price; 
 
(iv) if approved by the Administrator of its
discretion, by delivery of an assignment satisfactory in form and substance to the Company of a sufficient amount of the proceeds from the sale of Shares to be acquired pursuant to such exercise and an instruction to the broker or selling agent to
pay that amount to the Company; or 
 
(v) by a combination of such methods of payment or any other method acceptable to the Administrator in its discretion. 
 
(b) Except in the case of Options exercised by certified or bank cashier’s check, the Administrator may impose limitations and
prohibitions on the exercise of Options as it deems appropriate, including, without limitation, any limitation or prohibition designed to avoid accounting consequences which may result from the use of Common Stock as payment upon exercise of an
Option. Any fractional Shares resulting from an Optionee’s election that is accepted by the Company shall be paid in cash. 
 

	11.	 	EXERCISE BY SUCCESSORS. 

 
An Option may be exercised, and payment in full of the aggregate Exercise Price made, by the Successors of the Optionee only by written
notice (in the form prescribed by the Administrator) to the Company specifying the number of Shares to be purchased. Such notice shall state that the aggregate Option Price will be paid in full, or that the Option will be exercised as otherwise
provided hereunder, in the discretion of the Company or the Administrator, if and as applicable. 
 

	12.	 	NONTRANSFERABILITY OF OPTION. 

 
Each Option granted under the Plan shall by its terms be nontransferable by the Optionee except by will or the laws of descent and
distribution of the state wherein the Optionee is domiciled at the time of his death; provided, however, that the Administrator may (but need not) permit other transfers of Non-Qualified Options where the Administrator concludes that such
transferability does not result in accelerated U.S. federal income taxation and is otherwise appropriate and desirable. 
 

	13.	 	TAX WITHHOLDING. 

 

	 	13.1.	 	In General. 

 
The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding determined by the
Administrator to be required by law. Without limiting the generality of the foregoing, the Administrator may, in its discretion, require an Optionee to pay to the Company at such time as the Administrator determines the amount that the Administrator
deems necessary to satisfy the Company’s obligation to withhold federal, state or local income or other taxes incurred by reason of the exercise of any Option. 
 

9 

 

	 	13.2.	 	Share Withholding. 

 
Upon the exercise of an Option, the Optionee may, if approved by the Administrator in its discretion, make a written election to have
Shares then issued withheld by the Company from the Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the liability for such withholding taxes. In the event that the Optionee makes, and the Administrator
permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes. 
 

	 	13.3.	 	Withholding Required. 

 
Notwithstanding anything contained in the Plan to the contrary, the Optionee’s satisfaction of any tax-withholding requirements
imposed by the Administrator shall be a condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide Shares to the Optionee and to the release of any restrictions as may otherwise be provided hereunder, as
applicable; and the applicable Option shall be forfeited upon the failure of the Optionee to satisfy such requirements with respect to the exercise of the Option. 
 

	14.	 	REGULATIONS AND APPROVALS 

 
(a) The obligation of the Company to sell Shares with respect to an Option granted under the Plan shall be subject to all applicable laws,
rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Administrator. 
 
(b) The Administrator may make such changes to the Plan as may
be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Option. 
 
(c) Each grant of Options is subject to the requirement that, if at any time the Administrator determines, in its discretion, that the
listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the issuance of Options no payment shall be made in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions in a manner acceptable
to the Administrator. 
 
(d) In the event that the
disposition of stock acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent
required under the Securities Act, and the Administrator may require any individual receiving Shares pursuant to the Plan, as a condition precedent to receipt of such Shares, to represent to the Company in writing that such Shares will be disposed
of only if registered for sale under the Securities Act or if there is an available exemption for such disposition. 
 

10 

 

	15.	 	INTERPRETATION AND AMENDMENTS, OTHER RULES. 

 
15.1. The Administrator may make such rules and regulations and establish such procedures for the administration of the Plan as it deems
appropriate. Without limiting the generality of the foregoing, the Administrator may (i) determine the extent, if any, to which Options shall be forfeited (whether or not such forfeiture is expressly contemplated hereunder); (ii) interpret the Plan
and the Grant Letters hereunder, with such interpretations to be conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law, provided that the Administrator’s interpretation shall not be entitled to
deference on and after a Change of Control except to the extent that such interpretations are made exclusively by members of the Administrator who are individuals who served as Administrator members before the Change of Control; and (iii) take any
other actions and make any other determinations or decisions that it deems necessary or appropriate in connection with the Plan or the administration or interpretation thereof. Unless otherwise expressly provided hereunder, the Administrator, with
respect to any grant, may exercise its discretion hereunder at the time of the grant or thereafter. In the event of any dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or procedure, or as to any question,
right or obligation arising from or related to the Plan, the decision of the Administrator, except as provided in clause (ii) of the foregoing sentence, shall be final and binding upon all persons. The Board may amend the Plan as it shall deem
advisable, except that no amendment may adversely affect an Optionee with respect to an Option previously granted unless such amendments are required in order to comply with applicable laws; provided that the Board may not make any amendment in the
Plan that would, if such amendment were not approved by the holders of the Common Stock, cause the Plan to fail to comply with any requirement of applicable law or regulation, unless and until the approval of the holders of such Common Stock is
obtained. 
 

	16.	 	CHANGES IN CAPITAL STRUCTURE; CHANGE OF CONTROL. 

 

	 	16.1.	 	Changes in Capital Structure. 

 
(a) If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of
shares, sale of all or substantially all of the assets or stock of the Company or a transaction similar thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization or other similar change
in the capital structure of the Company or any distribution to holders of Common Stock other than cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Administrator necessitates action by way of adjusting the
terms of the outstanding Options, then (x) the maximum aggregate number of Shares which may be made subject to Options under the Plan shall be appropriately adjusted by the Administrator; and (y) the Administrator shall take any such action as in
its judgment shall be necessary to preserve the Optionees’ rights in their respective Options substantially proportionate to the rights existing in such Options prior to such event, including, without limitation, adjustments in (A) the number
of Options granted, (B) the number and kind of shares or other property to be distributed in respect of Options, and (C) the Exercise Price. 
 

11 

 

	 	16.2.	 	Change of Control or Approved Sale. 

 
(a) Upon a Change of Control or an Approved Sale unless otherwise provided in an Optionee’s Grant Letter, the vesting and
exercisability of all Options that are outstanding and unexercised as of such Change of Control, to the extent unvested, and any unvested shares held by the Optionee shall be accelerated such that all outstanding Options are fully vested and
exercisable and all Shares held by the Optionee are fully vested, and, if the Company does not survive such Change of Control or an Approved Sale, the Company shall, if the Company does not cash-out all outstanding options, require the successor
corporation to the Company to assume all outstanding Options and to substitute such Options with awards involving the common stock of such successor corporation on terms and conditions necessary to preserve the rights of Optionees with respect to
such Options. Upon a Change of Control or an Approved Sale, the Administrator, in its sole discretion, may require the Company to cancel all outstanding vested Options (including those Options vested upon a Change of Control or an Approved Sale) in
exchange for a cash payment in an amount equal to the excess, if any, of the Fair Market Value of the Common Stock underlying the unexercised portion of the Option as of the date of the Change of Control or Approved Sale over the Option Price of
such portion. Notwithstanding anything in the Plan to the contrary, in the event of an Approved Sale or a Change of Control, the Administrator shall not have the right to take any actions described in the Plan (including without limitation actions
described in this Section 16.2) that would make the Approved Sale or Change of Control ineligible for pooling of interests accounting treatment or that would make the Approved Sale or Change of Control ineligible for desired tax treatment if, in the
absence of such right, the transaction would qualify for such treatment and the Company intends to use such treatment with respect to the transaction, in which case the Administrator and the Company shall be required to take the action described in
the first sentence of this Section 16.2. 
 
16.3.
Administrator Authority. The judgment of the Administrator with respect to any matter referred to in this Section 16 shall be conclusive and binding upon each Optionee without the need for any amendment to the Plan. 
 

	17.	 	MISCELLANEOUS. 

 

	 	17.1.	 	No Rights to Employment or Other Service. 

 
Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual any right to continue in the employ or other
service of the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries and its stockholders to terminate the individual’s employment or other service at any time. 
 

	 	17.2.	 	No Fiduciary Relationship. 

 
Nothing contained in the Plan, and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a
trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Administrator, on the one hand, and the Optionee, the Company, its Subsidiaries or any other person or entity, on the other.

 
 

12 

	 	17.3.	 	Notices. 

 
All notices under the Plan shall be in writing, and if to the Company, shall be delivered to the Board or mailed to its principal office,
addressed to the attention of the Board; and if to the Optionee, shall be delivered personally, sent by facsimile transmission or mailed to the Optionee at the address appearing in the records of the Company. Such addresses may be changed at any
time by written notice to the other party given in accordance with this Section 17.3. 
 

	 	17.4.	 	Exculpation and Indemnification. 

 
The Company shall indemnify and hold harmless the members of the Board and the members of the Administrator, from and against any and all
liabilities, costs and expenses incurred by such persons as a result of any act or omission to act in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, to the maximum extent permitted by
law, other than such liabilities, costs and expenses as may result from the gross negligence, bad faith, willful misconduct or criminal acts of such persons. 
 

	 	17.5.	 	Captions. 

 
The use of captions in this Plan is for convenience. The captions are not intended to provide substantive rights. 
 

	 	17.6.	 	Governing Law. 

 
THE PLAN SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS. 
 
IN WITNESS WHEREOF, on behalf of Adolor Corporation and
pursuant to the direction of the Board, the undersigned hereby adopts the Plan as set forth herein. 
 

	 	 	 Adolor Corporation

	
	 	 	 By:
	 	 
	 	 	 	

	
	 	 	 Title:
	 	 
	 	 	 	

 
 

13Amended and Restated Lease

 
Exhibit 10.4

 
 
 
AMENDED AND RESTATED 
 
BUILD TO SUIT 
 
LEASE FOR COMBINATION 
 
LAB/OFFICE SPACE 
 
AT 
 
700 PENNSYLVANIA DRIVE 
 
UPPER UWCHLAN TOWNSHIP, CHESTER COUNTY, PA 
 
LANDLORD: 700 PENNSYLVANIA DRIVE ASSOCIATES 
 
TENANT: ADOLOR CORPORATION 
620 Pennsylvania Drive 
Exton, PA 19341 
 
FEBRUARY 27, 2003 
 

 
TABLE OF
CONTENTS 
 

	
	 1.
	  	 Property Ownership
	  	 1

	
	 2.
	  	 Construction of Improvements
	  	 1

	
	 3.
	  	 Completion of Construction
	  	 2

	
	 4.
	  	 Initial Term
	  	 17

	
	 5.
	  	 Renewal of Initial Term
	  	 19

	
	 6.
	  	 Rent
	  	 21

	
	 7.
	  	 Additional Rent
	  	 25

	
	 8.
	  	 Put-Back Space Reduction
	  	 26

	
	 9.
	  	 Use
	  	 26

	
	 10.
	  	 Compliance with Law
	  	 26

	
	 11.
	  	 Late Payment
	  	 32

	
	 12.
	  	 Tenant Alterations
	  	 33

	
	 13.
	  	 Mechanic’s Liens
	  	 35

	
	 14.
	  	 Condition of Premises
	  	 35

	
	 15.
	  	 Maintenance of Premises
	  	 37

	
	 16.
	  	 Assignment and Subletting
	  	 40

	
	 17.
	  	 Landlord Access To Premises
	  	 41

	
	 18.
	  	 Surrender of Premises
	  	 41

	
	 19.
	  	 Indemnification
	  	 42

	
	 20.
	  	 Insurance
	  	 43

	
	 21.
	  	 Casualty Damage
	  	 45

	
	 22.
	  	 Condemnation
	  	 45

	
	 23.
	  	 Estoppel Certificates
	  	 46

	
	 24.
	  	 Default
	  	 47

	
	 25.
	  	 Landlord Remedies
	  	 48

	
	 26.
	  	 Landlord’s Default and Tenant’s Remedies
	  	 49

	
	 27.
	  	 Confession Of Judgment
	  	 50

	
	 28.
	  	 Waiver
	  	 51

	
	 29.
	  	 Quiet Enjoyment
	  	 52

 

i 

	
	 30.
	  	 Force Majeure
	  	 52

	
	 31.
	  	 Successors
	  	 52

	
	 32.
	  	 Landlord’s Liability
	  	 52

	
	 33.
	  	 Subordination and Non-Disturbance
	  	 53

	
	 34.
	  	 Rules and Regulations
	  	 54

	
	 35.
	  	 Governing Law
	  	 54

	
	 36.
	  	 Severability
	  	 54

	
	 37.
	  	 Holding Over
	  	 55

	
	 38.
	  	 Notices
	  	 55

	
	 39.
	  	 Brokers
	  	 56

	
	 40.
	  	 Signs
	  	 56

	
	 41.
	  	 Security Deposit
	  	 56

	
	 42.
	  	 Option To Purchase
	  	 57

	
	 43.
	  	 Intentionally Omitted
	  	 58

	
	 44.
	  	 Satellite Dish
	  	 58

	
	 45.
	  	 Rent Credit
	  	 59

	
	 46.
	  	 Use of Information In Advertising
	  	 59

	
	 47.
	  	 Captions
	  	 59

	
	 48.
	  	 Entire Agreement
	  	 59

	
	 49.
	  	 Counterparts
	  	 59

	
	 50.
	  	 Memorandum of Lease
	  	 59

	
	 51.
	  	 Time of Essence
	  	 59

	
	 52.
	  	 Limited Guaranty of The Hankin Group
	  	 60

	
	 53.
	  	 Zoning Amendment
	  	 60

 

ii 

 

	 Exhibits

	
	 Exhibit A – Site Plan

	
	 Exhibit B – Landlord’s Building Plans

	
	 Exhibit C – Construction Rider

	
	 Exhibit D – Preliminary Plans and Project Schedule

	
	 Exhibit E – Final Plans

	
	 Exhibit F – Form of Construction Letter of Credit

	
	 Exhibit G – Change Order Form

	
	 Exhibit H – Change Order Application for Payment

	
	 Exhibit I – Commencement Date Agreement

	
	 Exhibit J – Intentionally Omitted

	
	 Exhibit K – Form of Estoppel Certificate

	
	 Exhibit L – Rules and Regulations

	
	 Exhibit M – Special Covenant

	
	 Exhibit N – Title Commitment

	
	 Exhibit O – Intentionally Omitted

	
	 Exhibit P – Limited Guaranty of the Hankin Group

	
	 Exhibit Q – Plan Development Schedule

 

iii 

 
DEFINITIONS 
 

	 Additional Rent
	  	 24,27

	 Agreement
	  	 1

	 Alternative Vivarium Space
	  	 63

	 Amortized Termination Reimbursement
	  	 52

	 Appeal Period
	  	 62

	 Appellant Judgement
	  	 63

	 Approved Subcontractors
	  	 3

	 Architect
	  	 4

	 Architect’s Certificate of Substantial Completion
	  	 9

	 Architect’s Fee
	  	 4

	 Architect’s Schedule of Values Approval
	  	 7

	 Assignment Payment
	  	 41

	 award
	  	 47

	 Base Rent
	  	 23

	 Bid Price
	  	 6

	 Building
	  	 1

	 Casualty
	  	 46

	 Center
	  	 1

	 Change Order Application for Payment
	  	 15

	 Change Order Cost
	  	 14

	 Change Orders
	  	 14

	 Commencement Date
	  	 18

	 Commencement Date Agreement
	  	 19

	 Comparison Space
	  	 4

	 Construction Letter of Credit
	  	 11

	 Construction Period Termination Reimbursement
	  	 9

	 Construction Rider
	  	 3

	 Contractor’s Application
	  	 10

	 Contractor’s Fee
	  	 5

	 Cost of the TI Work
	  	 3

	 CPI Adjustment
	  	 59

	 Declaration
	  	 23

	 Declaration Assessments
	  	 23

	 Default Rate
	  	 27

	 Deposit
	  	 59

	 Developed Put-Back Space
	  	 2

	 Development Approvals
	  	 37

	 Eagleview
	  	 3

	 Environmental Laws
	  	 30

	 Event of Default
	  	 48

	 Excused Delays
	  	 8

	 Exercise Date
	  	 59

 

iv 

	 Existing Renovated Office Space
	  	 2

	 Existing Renovated Office Space Occupancy Date
	  	 17

	 Expiration Date
	  	 18

	 Final Bids
	  	 6

	 Final Plans
	  	 5

	 Final Plans Approval
	  	 5

	 Final Plans Process
	  	 5

	 First Phase
	  	 2

	 Force Majeure
	  	 54

	 GEI
	  	 18

	 GEI Agreements
	  	 18

	 GEI Interference
	  	 19

	 Governmental Authority
	  	 22

	 Hankin Guaranty Items
	  	 62

	 Hazardous Materials
	  	 30

	 HVAC
	  	 2

	 Improvements
	  	 1

	 Initial Term
	  	 18

	 Intermediate Plans
	  	 5

	 Lab Space
	  	 2

	 Land
	  	 1

	 Landlord
	  	 1

	 Landlord’s Budget Certificate
	  	 6

	 Landlord’s Committed Budget Price
	  	 4

	 Landlord’s Statement
	  	 26

	 Landlord’s Work
	  	 2

	 Laws
	  	 28

	 Lease
	  	 1

	 Legal Requirements
	  	 3

	 Limited Access Date
	  	 10

	 Market Base Rental Rate
	  	 20

	 Measuring Date
	  	 7

	 Mortgage
	  	 54

	 Mortgagee
	  	 54

	 New Office Space
	  	 2

	 Non-Disturbance Agreements
	  	 55

	 Operating Expenses
	  	 22, 23

	 Option to Purchase
	  	 58

	 Original Lease Execution Date
	  	 1

	 Outside Date
	  	 9

	 Parties
	  	 1

	 Party
	  	 1

	 Permitted Exceptions
	  	 38

	 Permitted Tenant Alterations
	  	 35

 

v 

	 Permitted Use
	  	 28

	 Personal Property
	  	 56

	 Phase
	  	 2

	 Phase Commencement Date
	  	 18

	 Phase Occupancy Date
	  	 4

	 Preliminary Plans
	  	 4

	 Premises
	  	 1

	 Project
	  	 1

	 Public Accommodations Laws
	  	 28

	 Punch Lists
	  	 17

	 Purchase Price
	  	 59

	 Put-Back Space
	  	 2

	 Put-Back Space Reduction
	  	 27

	 Real Estate Taxes
	  	 22

	 Reconstruction
	  	 46

	 Reduction Effective Date
	  	 27

	 Renewal Notice
	  	 20

	 Renewal Terms
	  	 20

	 Rent
	  	 26

	 Replacement Facility
	  	 63

	 Restate Lease
	  	 1

	 Schedule of Values
	  	 7

	 Second Phase
	  	 2

	 Security Deposit
	  	 58

	 Sewage Capacity
	  	 37

	 Structural Components
	  	 39

	 Subsequent Appeal
	  	 63

	 Substantial Completion
	  	 9

	 Substantial Completion Target Date
	  	 10

	 Telecommunications Equipment
	  	 60

	 Tenant
	  	 1

	 Tenant Allowance
	  	 3

	 Tenant Alterations
	  	 34

	 Tenant Delays
	  	 8

	 Tenant Fixturing Work
	  	 2

	 Tenant Loss
	  	 47

	 Tenant Payment Obligations
	  	 9

	 Tenant’s Construction Cost Share
	  	 5

	 Tenant’s Construction Period Interest
	  	 8

	 Tenant’s Proportionate Share
	  	 22

	 Term
	  	 20

	 Term Expiration Rate
	  	 56

	 Termination Reimbursement
	  	 30

	 TI Work
	  	 2

 

vi 

	 Title Commitment
	  	 59

	 Vivarium Phase
	  	 2

	 Vivarium Space
	  	 62

	 Warranty Period
	  	 13

	 Zoning Amendment
	  	 62

	 Zoning Amendment Appeal
	  	 62

 
 

vii 

 
AMENDED
AND RESTATED LEASE 
 
THIS AMENDED AND
RESTATED LEASE AGREEMENT (the “Restated Lease”), made this 27th day of February, 2003 between 700
PENNSYLVANIA DRIVE ASSOCIATES (“Landlord”) and ADOLOR CORPORATION (“Tenant”). 
 
RECITALS 
 
A. Landlord owns an 80,000 square foot building (the “Building”) and other improvements (collectively together with the Building, the “Improvements”) on property
consisting of 7.95 acres and known as 700 Pennsylvania Drive (Lot #4) Upper Uwchlan Township, owned by Landlord and more particularly described in the site plan and description attached as Exhibit A-1 (the “Land”) located
within the eight hundred (800) acre corporate/residential community known as Eagleview (the “Center”) and desires to lease the Land and the Improvements (collectively, the “Premises”) to Tenant in accordance with
the terms and subject to the conditions of this Agreement. 
 
B. Tenant desires to lease the Premises from Landlord (the “Project”) in accordance with the terms, and subject to the conditions contained in, this Agreement. 
 
C. Landlord and Tenant entered into the original Lease (the
“Original Lease”) with respect to the Property on December 24, 2002 (the “Original Lease Execution Date”) and wish to amend and restate the Original Lease pursuant to the terms and conditions of this Restated Lease
(the Original Lease as amended and restated by this Restated Lease referred to herein as the “Lease” or this “Agreement”). 
 
FOR AND IN CONSIDERATION of the mutual covenants contained in this Agreement, Landlord and Tenant (sometimes referred to individually as a
“Party” or jointly as the “Parties”) agree to amend and restate the Original Lease by entering into this Agreement, which shall amend and replace each and every provision of the Original Lease with the following
terms and provisions as follows: 
 

	 	1.	 	Property Ownership. 

 
Landlord leases the Land, and the Improvements now existing or to be constructed on the Land, to Tenant, and Tenant leases
the Land, and the Improvements now existing or to be constructed on the Land, from Landlord, on the terms and conditions set forth in this Agreement. 
 

	 	2.	 	Construction of Improvements. 

 
2.1. Building Spaces. The Building will consist of the following spaces: 
 

A. 17,367 square feet of Existing Renovated Office Space located at the
front of the Building in which some minor additional finish work will be performed (“Existing Renovated Office Space”); 
 
B. 25,893 square feet of space located in the middle of the Building anticipated to be utilized as laboratories, inclusive
of a 5,020 square foot vivarium (“Lab Space”); 
 
C. 11,938 square feet of space located adjacent to the Lab Space and to be fitted out for use as ancillary laboratory offices (“New Office Space”);and 
 
D. 24,802 square feet of space outlined in
red on the drawing identified as Project No. 14452 and attached as Exhibit A-1 located in the rear of the Building, a 20,802 square foot portion of which will initially be unoccupied and unimproved by Tenant (“Put-Back
Space”). A 4,000 square foot portion of the Put-Back Space designated on Exhibit A-1, will be developed as additional office space (“Developed Put-Back Space”). 
 
E. The construction and occupancy of the
Existing Renovated Office Space is referred to as the “First Phase”. The construction and occupancy of the New Office Space, the Lab Space (exclusive of the vivarium) and the Developed Put-Back Space is referred to collectively as
the “Second Phase”. The construction and occupancy of the vivarium portion of the Lab Space is referred to as the “Vivarium Phase”. The First Phase, the Second Phase and the Vivarium Phase are each referred to
herein as a “Phase”. 
 
2.2. TI Work; Tenant Fixturing Work. Landlord agrees to furnish all of the material, labor, and equipment necessary for the performance in accordance with this Agreement of the installation, construction and completion of all
interior and fit-out work with respect to the Existing Renovated Office Space, the Lab Space, the New Office Space and the Developed Put-Back Space, including wall partitions, doors, flooring, heating ventilation and cooling systems
(“HVAC”), interior utility systems, and sprinkler systems, wall and floor covering, utility distribution, hardware finishes certain furniture, trade fixtures and equipment (the “TI Work”) as more particularly
described in the Final Plans (defined herein). Telephone and data systems, and installation of furnishings not affixed to the Building (the “Tenant Fixturing Work”) may be installed by Tenant at Tenant’s sole cost. The
Landlord’s Building Plans prepared by the Architect (defined herein) attached as Exhibit B shall specify and differentiate in detail that work which constitutes TI Work. 
 
2.3. Landlord’s Work. The TI Work and any other work performed by Landlord
pursuant to this Lease (collectively the “Landlord’s Work”) shall be performed by Landlord’s affiliated construction company, Eagleview Commercial Construction Company (“Eagleview”), in a good and
workmanlike manner in accordance with the Final Plans and pursuant to the construction rider (the “Construction Rider”) attached hereto as Exhibit C, which will be executed by Landlord, Tenant and Eagleview, and the Architect
which addresses the coordination of duties among such signatories in connection with construction related issues concerning the Landlord’s Work. Landlord agrees to complete the Landlord’s Work in 
 

2 

accordance with all applicable statutes and building codes, zoning, subdivision, and other
similar land use related laws, governmental rules, regulations, ordinances, orders and covenants, and conditions and restrictions governing the location, construction and operation of the Premises (“Legal Requirements”). The Tenant
Fixturing Work performed by Tenant shall be completed in accordance with the same standards, as applicable to Landlord and in accordance with the terms of this Agreement. 
 

	 	3.	 	Completion of Construction. 

 
3.1. Tenant Allowance. Landlord shall contribute $1,740,000.00 (the “Tenant Allowance”) towards
the cost of completing the TI Work pursuant to this Lease and the Construction Rider, as applicable (the “Cost of the TI Work”). The Tenant Allowance shall be applied towards the Cost of the TI Work on a dollar for dollar, matching
basis. Accordingly, as the first $3,480,000 of TI Work is completed, one-half of each approved requisition shall be charged to the Tenant Allowance and the other one-half shall be charged to the Tenant’s Construction Cost Share (defined
herein), and thereby require an increase in the amount of the Construction Letter of Credit (defined herein) pursuant to the procedure specified in Section 3.11.C. In consideration for the Tenant Allowance, Tenant shall pay additional monthly
payments of Base Rent in the amount of $23,275.03 (the “Tenant Allowance Payment”), commencing on the Phase Completion Date for the Second Phase and continuing until the a total of one hundred and twenty monthly payments of such
Tenant Allowance Payment have been made to Landlord. 
 
3.2. List of Subcontractors. Within ten (10 days after the Original Lease Execution Date, Landlord shall submit to Tenant for review a list of potential subcontractors to perform the TI Work, such list containing at
least two subcontractors for each major trade (meaning a subcontract, the expected price for which is greater than $50,000.00) anticipated to supply or perform the TI Work, and such additional information regarding such subcontractor as Tenant may
reasonably request, relating to such subcontractor’s technical and financial capability to perform same. Tenant may recommend additional subcontractors, who are experienced in the type of work constituting the TI Work, to be added to such list
within five (5) days of receipt of Landlord’s list of subcontractors, and shall provide Landlord and Eagleview with similar information for evaluation. Landlord and Tenant shall promptly agree on the approved contractors to perform the TI Work
(the “Approved Subcontractors”). 
 
3.3. Simultaneous Construction; Phased Occupancy. Landlord and Tenant will use all reasonable efforts, and Tenant will cause Architect to use all reasonable efforts to design, construct and install the
Landlord’s Work in the Existing Renovated Office Space, New Office Space, the Developed Put-Back Space, and the Lab Space, on a “fast track” basis so that the First Phase will be ready for occupancy by Tenant no later than two (2)
months after the Measuring Date (defined herein) applicable to the First Phase, the Second Phase will be ready for occupancy by Tenant no later than four (4) months after the Measuring Date applicable to the Second Phase, and the Vivarium Phase will
be ready for occupancy no later than six (6) months after the Measuring Date (collectively the “Phase Occupancy Date”). Landlord shall immediately 

 

3 

	 	 
commence construction and installation of the Landlord’s Work upon Tenant approving the Final Plans. Based on current good faith
estimates, Landlord and Tenant anticipate that (i) the Measuring Date for the First Phase will be February 1, 2003 and accordingly the Phase Occupancy Date for the First Phase will be March 31, 2003 (subject to Tenant’s recognition that there
may be some interference in the Tenant’s Business Operations in the Existing Renovated Office Space by virtue of ongoing construction in the First Phase and the Second Phase), (ii) the Measuring Date for the Second Phase will also be February
1, 2003 and accordingly the Phase Occupancy Date for the Second Phase will be May 31, 2003, and (iii) the Measuring Date for the Vivarium Phase will also be February 1, 2003 and accordingly the Phase Occupancy Date for the Vivarium Phase will be
July 31, 2003. 

 
3.4. Preparation and Approval of Preliminary Plans. 
 
A. Tenant, prior to the Original Lease Execution Date engaged Ewing Cole Cherry Brott, Architects, Engineers & Planners, or another architect and/or engineer reasonably acceptable to Landlord
(“Architect”), whose fee (the “Architect’s Fee”) shall not be part of the Cost of the TI Work, but rather will be paid directly by Tenant to Architect pursuant to Tenant’s agreement with Architect.
Architect has been engaged by Tenant and shall for all purposes report to, and be Tenant’s agent with respect to the performance of the TI Work. Architect by executing the Construction Rider will agree, however, to allow Landlord to directly
rely on Architect’s work product as if Architect had been engaged directly by Landlord. Landlord has delivered to Architect the final plans developed for the Phase II office space (22,500 sf) and Phase III Lab Space (15,000 sf) at the
Viropharma facility located at the Center and constructed by Eagleview (the “Comparison Space”). Such plans shall not be copied by Tenant or Architect or used in any way violative of the author’s rights therein, and shall be
used by the Parties and Architect only as a frame of reference in developing a plan for the TI Work substantially consistent in design, quality of materials and pricing as the Comparison Space. Landlord, Tenant and Architect have approved
preliminary design development plans (also referenced as a Schematic Design Package) and outline specifications, with a narrative supplemental attachment thereto, both attached as Exhibit D-1 hereto (collectively “Preliminary
Plans”) for the TI Work. Landlord and Tenant have agreed on a process, together with anticipated timelines, for the production of the Final Plans (defined herein), attached hereto as Exhibit Q. Based on the Preliminary Plans,
Landlord has agreed to complete the TI Work at a cost not to exceed $4,350,000,000 (“Landlord’s Committed Budget Price”). The Landlord’s Committed Budget Price shall include the Contractor’s Fee (defined herein) but
shall exclude the Architect’s Fee and the Tenant’s Construction Period Interest (defined herein). 
 
B. The Landlord’s Committed Budget Price for the build out of the Landlord’s Work shall include all items of TI
Work, and shall include a fee (the “Contractor’s Fee”) in the amount of thirteen and one quarter percent (13.25%) of the Cost of the TI Work, but shall exclude the Architect’s Fee, Tenant’s Construction Period
Interest, and any portion of the Landlord’s Work that does not constitute TI Work. The cost of the TI Work shall include, without limitation, general conditions and field supervision costs of Landlord. The amount of 

 

4 

the Tenant Allowance is $1,740,000, and the balance of the Landlord’s Committed Budget Price to be paid by Tenant
(“Tenant’s Construction Cost Share”) is $2,610,000. 
 
C. Landlord is irrevocably committed to causing Eagleview to perform the Landlord’s Work at or below the Landlord’s Committed Budget Price regardless of the outcome of the bidding process
specified in Section 3.5 (and Eagleview shall agree in the Construction Rider to such Landlord’s Committed Budget Price), but subject to the procedures specified in Section 3.5 for Permitted Price Increases (defined herein) in
connection with the process for arriving at and approving the Final Plans. 
 
3.5. Final Plans; Bidding of Landlord’s Work. 
 
A. Tenant has requested that Architect prepare and submit to the Parties intermediate bid packages and other refinements
to the Preliminary Plans (“Intermediate Plans”), in connection with a process (the “Final Plans Process”), which consists of (a) the final bidding of the TI Work to the Approved Subcontractors and (b) the production
and approval (through redesign and value engineering) of the final plans, specifications and construction documents containing working drawings and specifications based on, and consistent in scope, quality, design and pricing with, the Preliminary
Plans (the “Final Plans”). Tenant shall cause Architect to participate in the Final Plans Process with the Parties, and the Parties will participate in the Final Plans process, with the goal of ultimately approving the Final Plans
(“Final Plans Approval”) in accordance with the procedures and timelines specified in Exhibit Q. 
 
B. Neither Party shall have any right to disapprove the Final Plans, or any Intermediate Plans prepared by Architect in
connection with the Final Plans Process, unless they materially diverge from the Preliminary Plans (or if the Preliminary Plans did not address a design element contained in any Intermediate Plans or the Final Plans, which design element materially
diverges from the Comparison Space). The term “materially diverges” shall mean (i) with respect to Tenant, any divergence which in Tenant’s judgement, reasonably exercised, is likely to materially impair or degrade the scope or
quality of the TI Work in a fashion that causes the TI Work to be materially inferior in such respects to the Preliminary Plans (and if applicable as specified above, the Comparison Space), and (ii) with respect to Landlord, any divergence which in
Landlord’s judgement, reasonably exercised, both (a) materially enhances or upgrades the scope or quality of the TI Work in a fashion that causes the TI Work to be materially more expensive than would have reasonably been anticipated from the
Preliminary Plans (and if applicable as specified above, the Comparison Space), and (b) is likely to cause the Bid Price to exceed the Landlord’s Committed Budget Price. Promptly upon receiving any Intermediate Plans or the Final Plans, any
Party that determines that a material divergence exists will promptly notify the other Party, specifying the material divergence. If the material divergence relates to clause (i) above, the Parties will work with the Architect to revise the
applicable Intermediate or Final Plans in a fashion which restores the scope or quality of the TI Work to the level specified in the Preliminary Plans (or the Comparison Space, if applicable as specified above). If the material divergence relates to
clause (ii) above, at any time during the Final Plans Process, including upon completion of the Final Bids (defined herein), Landlord will promptly notify 

 

5 

Tenant and Architect of any price increase known to Landlord caused by such material divergence (a “Permitted Price
Increase”). Thereafter, the Parties and the Architect will work in good faith to address such Permitted Price Increase by (A) value engineering the TI Work, (B) redesigning the Intermediate or Final Plans to eliminate the material
divergence, and/or (C) to the extent not addressed by clauses (A) and (B), to increase the Landlord’s Committed Budget Price by the Permitted Price Increase. Landlord shall have the burden of demonstrating that one or more instances of a
material divergence under clause (ii) above have occurred, and that as a result thereof (and the time consumed in addressing same under clauses (A), (B) and (C) above), Landlord in the course of the Final Plans Process has, in the aggregate, been
delayed by ten (10) or more days in delivering occupancy of the Phases by the Phase Occupancy Dates specified in Section 3.3. If Landlord is able to make such demonstration, then the number of days of delay in excess of such ten (10) day
maximum shall constitute a Tenant Delay. 
 
C. Exhibit Q outlines the timeline projected for the Architect to submit various deliverables to Landlord, and for Landlord and Tenant to respond to and work with Architect to arrive at acceptable Final Plans through a mutual
process of value engineering, bidding out the TI Work, and general refinement of the Preliminary Plans. During this Final Plans Process, as indicated on Exhibit Q, Landlord shall cause Eagleview to solicit bids for the TI Work from Approved
Subcontractors based on the Preliminary Plans and/or refined bid-package plans for major systems (“Final Bids”). Landlord shall supply Tenant with copies of the bid package submitted to each Approved Subcontractor and a copy of each
Approved Subcontractor’s bid with respect to the TI Work (the aggregate amount of such bids, together with the Contractor’s Fee constituting the (“Bid Price”)). Coincident with the awarding of the bids on January 8, 2003
(as contemplated in Exhibit Q) Landlord shall provide Tenant with a certificate (“Landlord’s Budget Certificate”) revising the (i) Landlord’s Committed Budget Price, which shall be the lower of the Landlord’s
Committed Budget Price (as adjusted pursuant to Section 3.5.B. above) or the Bid Price, (ii) the Tenant Allowance and (iii) the Tenant’s Construction Share that originally appeared in Section 3.4.B. Landlord shall also represent
that the bids from Approved Contractors cover all the Landlord’s Work contemplated by the Final Plans. If the Bid Price exceeds the Landlord’s Committed Budget Price, Landlord shall remain obligated to perform the TI Work at the
Landlord’s Committed Budget Price (as adjusted pursuant to Section 3.5.B.). 
 
D. If a Party disapproves the Intermediate Plans and/or the Final Plans, such disapproval shall be accompanied by proposed revisions to the Intermediate Plans and/or the Final Plans satisfactory to
such Party. If a Party does not provide any notice within ten (10) days after the Intermediate Plans and/or Final Plans are to delivered to such Party, such Party shall be deemed to have approved the Intermediate Plans and/or Final Plans.

 
E. Upon Tenant’s and
Landlord’s approval (or deemed approval) of the Final Plans, such Final Plans shall constitute the Final Plans under this Lease and shall be attached hereto, as Exhibit E, and such Exhibit E shall be in lieu of and shall
replace the Preliminary Plans. 
 

6 

F. The date of the last to occur of Final Plans Approval, the delivery of
Landlord’s Budget Certificate to Tenant, and the issuance of the required building permits from Upper Uwchlan Township is referred to herein as the “Measuring Date”. Landlord agrees to conduct preliminary meetings and make
preliminary submittals to the appropriate agencies, departments or boards of Upper Uwchlan Township in order to expedite obtaining such permits. If the Final Plans Approval is achieved prior to the passage of the Zoning Amendment (defined herein),
Landlord shall, if feasible, apply for the necessary building permits for the TI Work in advance of such passage in order to expedite the issuance of such permits after such passage. Landlord’s building permit application for the Lab Space
shall prominently specify the construction of the vivarium for animal research in accordance with the allowable uses of the Premises 
 
3.6. Intentionally Omitted 
 
3.7. Schedule of Values. Landlord shall supply Tenant with copies of the bid package submitted to each Approved
Subcontractor and a copy of each Approved Subcontractor’s bid with respect to the TI Work. Landlord shall also represent that the bids from Approved Contractors cover all the Landlord’s Work contemplated by the Final Plans. The
Landlord’s Committed Budget Price (as adjusted pursuant to Section 3.5.B.) shall be specifically agreed to by Eagleview pursuant to the Construction Rider. Landlord shall provide to Tenant, at the time of Landlord’s delivery of
the Landlord’s Budget Certificate to Tenant, an estimated schedule of completion of the TI Work, with the estimated value of TI Work expected to be in place each month measured from the date of commencement of construction (the
“Schedule of Values”). The Schedule of Values, and any subsequent amendment thereto, shall be submitted to Architect for review and approval, which approval (the “Architect’s Schedule of Values Approval”) shall
be an executed and dated document on Architect’s letterhead, and which approval will not be unreasonably withheld, conditioned or delayed. Except for cost overruns caused by Tenant and Excused Delays (defined herein), Landlord shall be
responsible to the extent the Cost of the TI Work exceeds the Landlord’s Committed Budget Price (as adjusted pursuant to Section 3.5.C.). 
 
3.8. Tenant’s Construction Period Interest. In addition to Tenant’s payment of the Tenant’s
Construction Cost Share, Tenant shall pay interest accrued and compounded monthly on all payments or internal credits properly paid or issued by Landlord to Contractor for work performed and materials supplied by subcontractors and material
suppliers with respect to Tenant’s Construction Cost Share in accordance with the Section 3.11.B of this Agreement and/or the applicable provisions of the Construction Rider, (but not including (i) costs of labor performed by
Landlord’s and Contractor’s employees and (ii) the Contractor’s Fee) (“Tenant’s Construction Period Interest”). Such Tenant’s Construction Period Interest shall commence to accrue from the date the
Contractor’s Application for such TI Work is approved by Tenant and Architect pursuant to this Lease and shall continue until Tenant’s payment of Tenant’s Construction Cost Share. The rate of interest shall be one percent (1%) per
annum. Tenant shall pay Tenant’s Construction Period Interest to Landlord at the time payment of Tenant’s Construction Cost Share for a Phase is due. 
 

7 

	 	3.9.	 	Commencement/Completion of Construction. 

 
A. Landlord shall diligently proceed with the construction of the Landlord’s Work and deliver possession to Tenant of
the New Office Space and the Lab Space no later than the dates for scheduled occupancy for each Phase specified in Section 3.3, in each case accompanied by a certificate of occupancy for the applicable Phase, time being of the essence. If
delay in commencement or completion of construction is caused or contributed to by Tenant, or those acting for or under Tenant (“Tenant Delays”), or by Force Majeur (defined herein) affecting the Landlord’s Work, (all of which
delays, including Tenant Delays, are referred to sometimes as “Excused Delays”) then, subject to the provisions of Subsection B, the time of commencement and completion of construction shall be extended for the additional
time caused by such Excused Delays. The Parties acknowledge that Landlord has agreed to the liquidated damages and termination rights available to Tenant for late delivery, as set forth in Subsection C below, in reliance upon Tenant’s
obligation to cause Architect to properly coordinate the construction process between Tenant, on the one hand, and Landlord and Contractor, on the other. Any delay by Tenant or Architect in promptly providing Landlord with directives or decisions
requested by Landlord or any event requiring rebidding by Landlord in connection with Change Orders or Change Order requests issued after the Final Plans Approval and adversely impacting on Landlord’s or Contractor’s pace of work, shall be
a Tenant Delay. 
 
B. It is
expressly agreed that Force Majeur events (defined herein) shall constitute Excused Delays and shall therefore be cause for extending the date for completion and delivery of the Premises to Tenant and/or increasing the Landlord’s Committed
Budget Price. 
 
C. If (i) Landlord
is not able to deliver occupancy of the Existing Renovated Office Space on the Existing Renovated Office Space Occupancy Date (defined herein), or (ii) any Phase is not available to Tenant with a certificate of occupancy by the date occurring two
(2) months after the scheduled Phase Occupancy Date for such Phase set forth in Section 3.3, plus the period of Excused Delays (such date being referred to herein as the “Outside Date”), due to any delay, other than an
Excused Delay, time being of the essence, Tenant may in its sole and absolute discretion, at any time within ten (10) days following the Outside Date, terminate this Lease. Upon such declaration, (x) Tenant shall vacate the portion of the Premises,
if any, which it then occupies within thirty (30) days, (y) Landlord shall reimburse Tenant for the cost of obtaining and maintaining the Construction Letter of Credit (defined herein), and the Construction Letter of Credit shall be returned to
Tenant, and (z) Landlord shall reimburse Tenant for any payment made by Tenant to Landlord in connection with Tenant’s Construction Cost Share or Tenant’s Construction Period Interest (such reimbursements under clauses (y) and (z)
constituting the “Construction Period Termination Reimbursement”). Tenant shall pay Base Rent and Additional Rent applicable to the Premises through the date Tenant occupies the same, and Landlord and Tenant shall then have no
further obligations to the other under this Lease. The rights to free rent and termination pursuant to Section 4.2 and this Section 3.9 are Tenant’s sole and exclusive remedies for Landlord’s delay, Tenant hereby waiving any
and all additional remedies for Landlord’s delay. 
 

8 

 
3.10. Substantial Completion. Except as otherwise specifically provided in this Lease (including without limitation a delay in Landlord’s achieving Substantial Completion by reason of a Tenant Delay), and consistent with
the provisions of Sections 6.2 and 6.3 of this Lease, Tenant shall not be liable to Landlord for the payment of Rent or any other payment under this Agreement applicable to a Phase (“Tenant Payment Obligations”) until the
Landlord’s Work with respect to the applicable Phase is substantially completed in accordance with all Legal Requirements and the Final Plans, as certified by Architect in an executed and dated document on Architect’s letterhead (the
“Architect’s Certificate of Substantial Completion”), the Phase is ready for occupancy by Tenant, and Landlord has obtained a certificate of occupancy therefor, or Tenant has taken occupancy of substantially all of a Phase and
commenced doing business therein (hereinafter, “Substantial Completion”). Subject to the preceding sentence, if Tenant occupies any portion of the Building prior to Substantial Completion of the Improvements, the terms of this Lease
shall apply to such occupancy. By occupying any Phase, Tenant shall be deemed to have accepted the same and to have acknowledged that such Phase, as applicable, is in the condition required by this Lease except for those items set forth in the
“Punch Lists” (defined herein), if any, and latent defects in Landlord’s Work. Tenant Payment Obligations shall commence upon the Phase Commencement Date (defined herein) applicable to a Phase in accordance with Sections 6.2
and 6.3 (or, if earlier, the date such Phase Commencement would have occurred but for a Tenant Delay); provided, however, if the Building is partially completed and partially ready for occupancy, and is occupied by Tenant, or Tenant is
required to occupy same, a pro rata portion of all Tenant Payment Obligations shall be payable commencing with such date of partial occupancy, and shall be equitably adjusted from time-to-time based upon the portion of the Phase substantially
completed and occupied by Tenant. Tenant shall notify Landlord when it needs to obtain access to the applicable Phase to perform Tenant Fixturing Work and in response thereto Landlord shall notify Tenant of the date when Substantial Completion of
each Phase of the Premises is expected to be achieved (“Substantial Completion Target Date”). With the exception of the Existing Renovated Office Space, absent such notification, Landlord shall give notice to Tenant approximately
forty-five (45) days prior to the Substantial Completion Target Date. After the applicable notice is either given or received by Landlord, Tenant shall be permitted (a) access to the First Phase upon execution of this Lease, and (b) limited access
to the Second Phase on or before April 1, 2003 (such date of limited access to the Second Phase is referred to herein as the “Limited Access Date”) to perform Tenant Fixturing Work; provided that: (a) Section 19
(Indemnification) and Section 20 (Insurance), shall be applicable and effective as of the Limited Access Date; (b) Tenant shall deliver to Landlord the Certificate of Insurance noted in Section 20 prior to the Limited Access Date and
the insurance shall be effective as of that date; (c) Tenant will avoid any interference with Landlord’s completion of the Landlord’s Work; and (d) Tenant shall submit its installation plans to Landlord for Landlord’s approval, which
shall not be unreasonably withheld, conditioned or delayed. The Vivarium Phase shall not be deemed to have obtained Substantial Completion if the certificate of occupancy with respect thereto has any prohibition against the use of the vivarium for
animal research (other than a prohibition against on-site disposal by burning of dead animals), and any such prohibition shall be deemed, for purposes of this Lease, to be the equivalent of the pendency of any Zoning Amendment Appeal (defined
herein) or Subsequent Appeal (defined herein) under Section 9 . 
 

9 

 

	 	3.11.	 	Payment Procedure. 

 
A. Landlord shall promptly provide Tenant and Architect for review and approval, each application for payment submitted by
Eagleview to Landlord in connection with the TI Work (the “Contractor’s Application”). No more than one such application shall be presented in each calendar month. Landlord shall consult with Tenant and Architect regarding the
acceptability of the TI Work performed, the percentage of completion of the TI Work and all other relevant issues regarding the amount of payment to be made to Eagleview with respect to such Contractor’s Application. All such matters shall be
administered, reviewed and approved by Architect pursuant to the procedures specified in the is Lease and the Construction Rider, such approval not to be unreasonably withheld, conditioned or delayed. 
 
B. Landlord shall pay or credit all
Contractor’s Applications which have been approved by Architect in a timely manner in accordance with this Lease and the Construction Rider. Tenant shall reimburse Landlord for Tenant’s Construction Cost Share applicable to such approved
amounts advanced by Landlord with respect to each applicable Phase on account of the Landlord’s Committed Budget Price, including the Contractor’s Fee, but exclusive of amounts reserved for Punch List Items and the Tenant’s
Construction Period Interest applicable thereto, upon Substantial Completion of such Phase. If Tenant fails to make such payment by wired federal funds within ten (10) days of request, and provided Architect has issued the Architect’s
Certificate of Substantial Completion with respect to the applicable Phase within ten (10) days of such request, Landlord shall have the right to immediately draw the Construction Letter of Credit, without further notice or opportunity to cure, but
subject to the procedures specified in Subsection C If Tenant disputes Substantial Completion, based upon Architect’s refusal to issue Architect’s Certificate of Completion, Tenant shall be required to specify the basis of such
dispute and shall further identify those portions of the TI Work that have not been completed in accordance with the Plans. Tenant shall be obligated to pay Landlord any amount that is not disputed as provided above in this Subsection B.
Tenant and Landlord shall use good faith efforts to arrive at a mutual resolution of the dispute. Contemporaneously with Landlord’s receipt of any payment required from Tenant hereunder, both Parties shall take all necessary steps to adjust the
outstanding amount of the Construction Letter of Credit to reflect such payment. At the time of Substantial Completion of the Lab Space, or at any time thereafter during the Initial Term, Tenant shall have the option to pay to Landlord the sum of
$33,800 on account of excess sewer capacity reserved for Tenant’s use at the Building, being an extra 2600 gallons per day above the standard allocation of 5500 gallons per day. 
 
C. At the time of Landlord’s delivery of the Landlord’s Budget Certificate, Tenant
shall deliver to Landlord, as security for Tenant’s obligation to pay Tenant’s Construction Cost Share and Tenant’s Construction Period Interest, a letter of credit (the “Construction Letter of Credit”) for the amount
applicable to Tenant’s Construction Cost Share shown on the Schedule of Values at the end of the three (3) month period following the Measuring Date. Provided, however, if Wachovia Bank, or any other bank selected by Tenant to issue the
Construction Letter of Credit, determines that the form of Letter of Credit attached as 
 

10 

Exhibit F is not satisfactory, then the Parties will use good faith efforts to
modify the form (but not the substance) of the Letter of Credit to satisfy the issuing bank, and Tenant shall have until the earlier to occur of (i) five (5) Business Days after the date the Parties and Wachovia agree on the revised form of the
Construction Letter of Credit, or (ii) thirty (30) days from the Measuring Date (but not sooner than Landlord’s delivery to Tenant of the Landlord’s Budget Certificate, to issue the Construction Letter of Credit. Any delay beyond the
applicable specified time period for the issuance of the Construction Letter of Credit pursuant to this Section 3.11(C) shall be a Tenant Delay. On or before thirty (30) days preceding the end of each one (1) month period following the Measuring
Date, Tenant shall cause the Construction Letter of Credit to be increased to the amount applicable to Tenant’s Construction Cost Share shown on the Schedule of Values as of the end of such subsequent one (1) month period, plus Tenant’s
Construction Period Interest applicable to Punch List Items. In addition, if at any time there are Change Orders which, when combined with all prior Change Orders approved since the original issuance of the Construction Letter of Credit, or the last
increase in the amount of the Construction Letter of Credit on account of prior Change Orders, as applicable, will increase the Landlord’s Committed Budget Price by $25,000.00 or more in the aggregate, then within ten (10) business days after
execution of such Change Order by Landlord and Tenant, and any future Change Orders thereafter increasing the Landlord’s Committed Budget Price by $25,000 or more in the aggregate, Tenant shall cause the Construction Letter of Credit to be
increased by the amount of such increases in the Landlord’s Committed Budget Price. It is the Parties’ intention that at all times the Construction Letter of Credit shall be in an amount not less than the value of the Tenant’s
Construction Cost Share expected to be incurred through the period extending one (1) month into the future. Accordingly, if during the performance of the TI Work, Landlord determines in good faith that the pace of completion of the TI Work is
progressing more quickly than as shown on the Schedule of Values, so that the value of Tenant’s Construction Cost Share allocable to the TI Work expected to be in place for a period extending one (1) months into the future may exceed the
current amount of the Construction Letter of Credit, Landlord shall have the right to revise the Schedule of Values and submit such revision to Tenant and Architect for approval, which approval will not be unreasonably denied, conditioned or
delayed. Within ten (10) days after the issuance by Architect of the Architect’s Schedule of Values Approval with respect to such revision, Tenant shall increase and/or accelerate the dates of increases in the Construction Letter of Credit to
conform to the revised Schedule of Values. Landlord shall have the immediate right, without notice or opportunity to cure, to draw the Construction Letter of Credit if Tenant shall fail, within the time periods specified in this Subsection C.
to increase the Construction Letter of Credit in the amount of either (i) Tenant’s Construction Cost Share of the cost of Change Orders and (ii) the amount indicated as due on the initial or the revised Schedule of Values (as applicable).
Tenant’s failure to deliver the Construction Letter of Credit, or to cause it to be increased pursuant to this Subsection C. within the periods required under this Subsection C. shall be an Event of Default under this Lease
(without regard to any other notice or cure period, which shall be inapplicable), and may be treated by Landlord as a Tenant Delay, and Landlord may, in addition to its other remedies, immediately draw the Construction Letter of Credit. The
Construction Letter of Credit to be delivered pursuant to this Section shall be drawable at an office of the issuing bank in metropolitan Philadelphia, which bank is acceptable to Landlord, for a term of not less than eight months and not more than
one (1) year, in form 
 

11 

acceptable to Landlord. The Construction Letter of Credit shall provide that it shall be
honored upon presentation only of a sight draft accompanied by (a) the original Construction Letter of Credit instrument and, (b) if such presentation is made more than thirty (30) days before the expiration of the Construction Letter of Credit, it
shall be also accompanied by the following, as applicable: (1) a statement from Landlord that Tenant has failed to make payment, within ten (10) days of Landlord’s written request, of the required payment of the Tenant’s Construction Cost
Share and Tenant’s Construction Period Interest with respect to a Phase or a Change Order that has attained Substantial Completion, accompanied by (x) a dated copy of such request (containing a calculation of Tenant’s Construction Cost
Share), (y) an executed copy of Architect’s Certification of Substantial Completion with respect to the applicable Phase, and (z) if applicable, both a Change Order in the form of Exhibit G signed by the Parties and an executed copy of
Architect’s Certification of Substantial Completion with respect to the applicable Change Order, or (2) a statement from Landlord that Tenant has failed to cause the Construction Letter of Credit to be increased in the amount required pursuant
to the initial or the revised Schedule of Values (as applicable), within ten (10) days after Landlord’s written request for such increase (containing a calculation demonstrating how such amount was derived), accompanied by the Architect’s
Schedule of Values Approval of the initial or the revised Schedule of Values (as applicable) forming the basis of the required increase in the Construction Letter of Credit, or (3) a statement from Landlord that Tenant has failed to cause the
Construction Letter of Credit to be increased in the amount required on account of an approved Change Order, within ten (10) days after Landlord’s written request, accompanied by the applicable Change Order in the form of Exhibit G
signed by the Parties. The Construction Letter of Credit shall be otherwise in form acceptable to Landlord. Such Construction Letter of Credit shall provide that it is governed by the provisions of the Pennsylvania Uniform Commercial Code, and that
in the event of any conflict between such Code and the Uniform Customs and Practices for Documentary Letters of Credit, the Code shall control. Notwithstanding anything to the contrary contained in this Lease, it shall constitute an Event of Default
under this Lease, and Tenant shall have no right to notice or an opportunity to cure, if Tenant fails to: (1) deliver the Construction Letter of Credit required hereunder within ten (10) days after the time of the Landlord’s delivery of the
Landlord’s Budget Certificate (subject, however to the extension of time specified in the second sentence of this Section 3.11.C.), (2) deliver to Landlord a replacement letter of credit which meets the requirements of this Section at
least thirty (30) days prior to the expiration of the current Construction Letter of Credit, or (3) cause the Construction Letter of Credit to be increased when required pursuant to this Subparagraph C. Landlord’s determination of the amount of
any required increase in the Construction Letter of Credit shall be final and binding on the Parties absent a manifest abuse of discretion. The form of the initial Construction Letter of Credit to be provided by Tenant under this Lease is attached
hereto as Exhibit F. 
 
3.12. Tenant Fixturing Work. Tenant shall be required, at Tenant’s sole cost, to perform such portion of the Tenant Fixturing Work not to be performed by Landlord under this Lease. Tenant may install, and complete,
subject to Legal Requirements, its Tenant Fixturing Work at and in the Building during the final stages of completion of the Landlord’s Work by Landlord; provided, that Tenant does not thereby interfere with the completion of the
Landlord’s 
 

12 

Work; and in all events, Landlord shall make the Building available to Tenant for such
Tenant Fixturing Work within a reasonable time to coordinate with Landlord’s Work and Tenant’s Fixturing Work, including cabling needs. Tenant’s presence at the Premises to perform Tenant Fixturing Work shall not be deemed to
constitute occupancy of the Premises. 
 
3.13. Warranty Period. Landlord covenants that the Landlord’s Work shall incorporate only new materials and equipment, and Landlord shall correct, repair or replace, at its sole cost and expense, any defective workmanship
and materials, latent or otherwise, including any defectively furnished or installed component of HVAC, electrical or plumbing systems, which are part of the Landlord’s Work for a period of one (1) year from the Commencement Date (the
“Warranty Period”) or for such longer period provided in the applicable manufacturers’ warranties, assigned by Landlord to Tenant pursuant to Section 15.1C There shall be no limitation on the period of Landlord’s
obligations pursuant to Section 15.1.B. with respect to the Structural Components (defined herein). 
 
3.14. Warranty Claims. The running of the Warranty Period shall be to any applicable item which is brought to
Landlord’s attention in writing specifically identifying the defect during the Warranty Period, and the warranty shall remain in effect as to all such items until they are properly corrected by Landlord, notwithstanding that the Warranty Period
would otherwise have expired. 
 
3.15. Lien Free Completion. Landlord shall complete the Landlord’s Work in accordance with the terms of this Agreement, all Legal Requirements, and the Final Plans, free of mechanic’s liens or other liens, and shall
indemnify and defend Tenant against, and save Tenant and the Premises, and any portion thereof, harmless from all losses, costs, damages, expenses, liabilities and obligations, including, without limitation, reasonable attorneys’ fees resulting
from the assertion, filing, foreclosure or other legal proceedings with respect to any mechanic’s lien or other lien for labor, services, materials, supplies, machinery, fixtures or equipment furnished in connection with the Landlord’s
Work. Upon Substantial Completion, Landlord agrees to obtain releases of liens from Eagleview and to use best efforts to obtain such releases from all major subcontractors. If Landlord is unable to obtain such releases, Landlord agrees to bond over
any mechanics lien claims when such claims are made. 
 
3.16. Change Order. Tenant, without invalidating this Lease, may order changes in the Final Plans consisting of additions, deletions or other revisions to the Landlord’s Work and extensions of the progress
schedule indicated on the Schedule of Values. All such changes shall be authorized by change orders in the form of Exhibit G to this Lease (“Change Orders”), signed by Tenant and, upon the issuance of such Change Orders,
Landlord shall duly prosecute the changes in accordance with the requirements of such Change Order and in accordance with the procedures specified in Section 3.17. The additional costs and charges, after deducting any reduction in cost or
saving realized by Landlord in the Cost of the TI Work occasioned by Change Orders, actually incurred by Landlord in connection with the performance of a Change Order (including sales and any other taxes imposed thereon and the fees of any engineers
or architects whose services may be required due to the nature of the Change Order), 
 

13 

and the application of the Contractor’s Fee thereto, are referred to in this Lease as
the “Change Order Cost”. 
 
3.17. Cost of Change Orders. Within ten (10) Business Days after receiving Tenant’s request for a Change Order, and before proceeding with any Change Order, Landlord shall submit to Tenant a statement of the Change Order
Cost for such Change Order and a statement of the terms and conditions on which such Change Order is to be performed or a statement of such additional time needed by Landlord to evaluate Tenant’s request. Landlord shall provide such additional
services and furnish such additional materials required under the Change Order at Landlord’s cost plus thirteen and 25/100 percent (13.25%) of such cost, utilizing Approved Subcontractors. Unless and until Tenant, by signing the Change Order,
shall have approved such estimate and such terms and conditions, Landlord shall not be obligated or authorized to proceed with the performance of such Change Order or with any other part of the Landlord’s Work which would be affected thereby.
Any fully-executed Change Order shall be deemed part of the Final Plans. To the extent Landlord’s completion of any of its obligations under this Lease is delayed by any proposed change, including as a result of the time needed to review the
proposed change and the agreed-upon extra time needed to complete same, the length of such delay shall be deemed a Tenant Delay. Tenant shall pay all agreed Change Order Costs as follows: 
 
A. Landlord shall submit to Eagleview, Tenant and Architect from time to time, upon
substantial completion of the TI Work referenced in such Change Order, but not more often than monthly, a statement in the form of Exhibit H to this Lease (a “Change Order Application for Payment”) for payment of the Change
Order Cost allocable to the Change Order completed. Architect shall review the Change Order Application for Payment, and shall confirm Substantial Completion of the Change Order TI Work and authorize payment of the Change Order Cost by issuing its
Architect’s Certificate of Substantial Completion with respect to the Change Order. 
 
B. Each Change Order Application for Payment shall constitute a warranty by Landlord to Tenant that: 
 
(i) Landlord has caused the Change Order
described in such Change Order Application for Payment to be completed in accordance with the Final Plans, as amended by the Change Order; 
 
(ii) there are no liens with respect to the TI Work performed pursuant to such Change Order outstanding at such date; and

 
(iii) Landlord has paid all
material subcontractors and mechanics all amounts for which payment was requested in the immediately preceding Change Order Application for Payment. 
 
C. Tenant shall increase the Construction Letter of Credit pursuant to the procedures specified in Section 3.6.C.
upon the execution of the applicable Change Order by 
 

14 

the Parties. Provided that Architect confirms Substantial Completion of the Change Order
TI Work by issuing its Architect’s Certificate of Substantial Completion pursuant to the procedure specified in Subsection A., Tenant shall be obligated to pay such Change Order Cost to Landlord in the approved amount, provided such
payment shall not be due from Tenant until the time payment is due for Tenant’s Construction Cost Share. 
 
D. Tenant may disapprove and retain all or any part of the payment requested in any Change Order Application for Payment
if: 
 
(i) such Change Order
Application for Payment or any documents required to be delivered with such Change Order Application for Payment are not complete as reasonably determined by Architect; 
 
(ii) Architect determines that the Change Order TI Work covered by such Change Order
Application for Payment does not conform in all respects to the Final Plans, as amended by the Change Order, and Legal Requirements; 
 
(iii) a lien has been imposed or a claim, charge or demand of any kind whatsoever has been made against Tenant (or
Tenant’s employees and Tenant’s affiliates) in connection with the Change Order by reason of any act or omission of any kind (whether willful, negligent or otherwise) by Landlord, Eagleview, any subcontractor engaged by either of them or
any other person or firm contracting with Landlord or any subcontractor of Landlord or Eagleview; or 
 
(iv) any statement or representation by Landlord on or in connection with any Change Order Application for Payment is
materially incorrect. 
 
Where
Tenant shall so retain all or a portion of a requested payment, when such payment shall be due under Subsection C. above, Tenant shall give notice to Landlord of the reasons therefor and shall pay such part of the Change Order Application for
Payment as is not in dispute. When the grounds set forth above have been removed, payment shall be promptly made for amounts thereby withheld. 
 
E. If Tenant shall disapprove any amount set forth in any such Change Order Application for Payment, Tenant shall give
notice thereof (specifying the reasons for such disapproval) to Landlord. No progress payment, nor any partial or entire use or occupancy of the Building, shall (i) constitute approval or acceptance by Tenant of any item listed in the related Change
Order Application for Payment or (ii) be construed to be final acceptance or approval of the part of the Change Order to which such payment relates or (iii) relieve Landlord of any of its obligations under this Lease. 
 
F. All costs incurred by Landlord or Eagleview
in connection with designing, pricing or otherwise dealing with a Change Order request by Tenant, (but not the cost of performing the Change Order, which shall be governed exclusively by Section 3.17.C.) whether or not a Change Order is
executed, including the Contractor’s Fee of thirteen and one 
 

15 

quarter (13.25%) percent on such costs, shall be paid by Tenant to Landlord for the
reasonable costs involved in processing the Change Order request. Tenant shall pay Landlord with respect to any Change Order request, whether or not the Change Order is executed, an amount equal to the greater of (i) the actual costs (together with
the Contractor’s Fee) incurred by Landlord or Eagleview, (ii) five (5%) percent of the estimated costs of performing such Change Order, or $250.00, whichever is more. Such payment shall be due on the earlier of: (A) Tenant’s decision not
to proceed with the Change Order or (B) fifteen (15) days after Landlord’s submission of a proposed Change Order to Tenant for signature. 
 
3.18. Architect Approvals. Tenant shall cause Architect to perform any required inspection of the Work and issue
any requested Certificate of Substantial Completion (or alternatively a statement of the reasons why no such certificate cannot be issues), Approval of Schedule of Values, Contractor’s Application, or other matter delegated to Architect within
this Lease or the Construction Rider, as applicable, within five (5) Business Days of Landlord’s written request. Architect’s failure to either issue a written approval or statement specifying the reasons such approval is not
appropriate within such five (5) Business Day period shall be deemed a disapproval by Architect. 
 
3.19. Tenant Attendance at Job Meetings; Inspection Rights. Landlord shall notify Tenant of job meetings between
Landlord, Eagleview and Architect and the applicable subcontractors for the performance of the Landlord’s Work, and Tenant shall have the right to attend and participate in such meetings in order to monitor the status thereof and compliance
with the Final Plans. Landlord shall afford Tenant and its contractors reasonable access to the Premises during the performance of the Tenant Fixturing Work for the purposes of inspecting the same and making preparations for, and performing, Tenant
Fixturing Work. 
 
3.20.
Designated Representatives. Tenant and Landlord shall each designate in writing one or two representatives to act in its behalf in dealings with the other Party in matters relating to the construction of the Landlord’s Work, and if
applicable the Tenant Fixturing Work. Each representative (a) may attend each regular Project meeting relating to the construction of the Improvements, (b) shall be qualified to give authorizations, render decisions and take such other action as
shall be required at such meetings, and (c) shall be authorized to approve Change Orders costing not in excess of One Thousand Dollars ($1,000.00) in any one instance. Each Party shall be bound by any consents or approvals given by such
designated representatives. Except as provided in this Agreement, either Party may at any time change its designated representatives by giving notice of a change of designation. The designated representatives shall exert their commercially
reasonable best efforts to render decisions and take actions in a timely manner so as to avoid unreasonable delay in the other Party’s obligations with respect to the performance of the Landlord’s Work and the Tenant Fixturing Work.

 
3.21. Punch List Items.
Contemporaneously with the execution of the Commencement Date Agreement (defined herein), Tenant shall give Landlord a written list of all contended defects or variances, if any, in the Landlord’s Work from the Final Plans and the other
requirements hereof, and Tenant shall deliver to Landlord an updated list of contended defects 
 

16 

within ninety (90) days following the Commencement Date (such lists are referred to herein
as the “Punch Lists”). Any and all such defects and variances not set forth in the Punch Lists, which were discernible at such time by a reasonable inspection, shall be conclusively deemed to be waived by Tenant, except to the
extent otherwise subject to Landlord’s warranty obligations under Section 3.13 and obligations with respect to Structural Components under Section 15.1.B. Landlord shall correct all items on the Punch Lists that constitute valid
defects or variances within sixty (60) days after Landlord’s receipt of the applicable Punch List, unless the nature of the defect or variance is such that a longer period of time is required to repair or correct the same, in which case
Landlord shall exercise due diligence in correcting such defect or variance at the earliest possible date and with a minimum of interference with Tenant’s business operations at the Premises. If Landlord fails to repair or correct such defect,
within the applicable time period, Tenant shall provide Landlord with written notice of such failure and Landlord shall effectuate such repairs within ten (10) days after receipt thereof. Should Landlord fail to commence the repairs within such ten
(10) day period and thereafter diligently cause them to be completed, Tenant may complete such items on the Punch Lists which constitute valid defects or variances and recover from Landlord Tenant’s cost of repairs. 
 

	 	4.	 	Initial Term. 

 
4.1. Tenant will have the right to occupy (a) the Existing Renovated Office Space on the Original Lease Execution Date
(the “Existing Renovated Office Space Occupancy Date”), and (b) the Second Phase and the Vivarium Phase, respectively, upon Substantial Completion thereof, but no later than the applicable Phase Occupancy Date. The date of
Substantial Completion of each of the First Phase, the New Office Space portion of the Second Phase, the Second Phase, and the Vivarium Phase, shall each be referred to herein as a “Phase Commencement Date”). The Initial Term of
this Agreement (the “Initial Term”) shall commence upon the Original Lease Execution Date and shall expire on a date (the “Expiration Date”) ten (10) years from the Phase Commencement Date of the Second Phase (the
“Commencement Date”), unless earlier terminated pursuant to the terms of this Lease. If the Commencement Date occurs on other than the first (1st) of a month, the Initial Term shall be extended for the number of days remaining in
such partial month after the Commencement Date. 
 
4.2. Liquidated Damages. 
 
A. Landlord shall credit Tenant, as liquidated damages and not as a penalty, with (i) $416.33 (17,367 sf x $8.75/sf divided by 365 days) for each day that delivery by Landlord of occupancy of the Existing Renovated Office
Space is delayed beyond the Existing Renovated Office Space Occupancy Date, (ii) $382.08 (15,938 sf x $8.75/sf divided by 365 days) for each day that the Phase Commencement Date for the New Office Space is delayed beyond the applicable Phase
Occupancy Date for the Second Phase, (iii) $500.38 (20,873 sf x $8.75/sf 365 days) for each day that the Phase Commencement Date for the Second Phase (exclusive of the vivarium) is delayed beyond the Phase Occupancy Date for the Second Phase,
and (iv) and $120.34 (5020 sf x $8.75/sf divided by 365 days) for each day that the Phase Commencement Date for the Vivarium Phase is delayed beyond the Phase Occupancy Date for 
 

17 

the Vivarium Phase; provided, however, that such liquidated damages shall only apply to
delays caused for reasons other than Excused Delays. 
 
B. If any of the delays specified in clauses (ii) or (iii) of Subsection A. above occur, this Lease shall continue in effect, but (except to the extent caused by Tenant Delay or to the extent Tenant takes early
occupancy pursuant to Section 3.10) Tenant’s obligation to pay Rent with respect to a Phase shall abate until (i) Substantial Completion of such Phase, and (ii) all free rent has been exhausted, and the Expiration Date shall be extended
accordingly. 
 
4.3. Conditional
Occupancy. GEI Mateer Burt, Inc. (“GEI”) is the current occupant of the Building and continues to maintain certain rights with respect to the Building pursuant to its lease and certain other agreements between GEI and Landlord
(the “GEI Agreements”), which rights shall terminate on May 1, 2003. Landlord has represented to Tenant that GEI has no intention of actually occupying any portion of the Building, (other than for one employee or agent to be located
at a desk in the Put-Back Space) and that although GEI has the right to occupy a portion of the Building until May 1, 2003, such rights will not interfere with Tenant’s occupancy of (a) the Existing Renovated Office Space on and after the
Existing Renovated Office Space Occupancy Date, (b) the construction of the Phases, (c) Tenant’s occupancy of the Phases on or after the applicable Phase Occupancy Date, or (d) the Put-Back Space after May 1, 2003. In order to induce Tenant to
enter into this Lease, Landlord hereby agrees to indemnify, defend, save and hold harmless Tenant, its directors, officers, agents and employees from and against any and all claims, demands, losses damages (including consequential damages) and
liabilities (including reasonable attorneys’ fees) resulting from any delay or interference by GEI (“GEI Interference”) with (i) the performance of the Landlord’s Work or the Tenant Fixturing, or (ii) Tenant’s
occupancy of (A) the Existing Renovated Office Space on or after the Existing Renovated Office Space Occupancy Date, (B) the New Office Space and/or the Lab Space, on or after the applicable Phase Occupancy Date, or (C) the Put-Back Space on or
after May 1, 2003. Any delay in achieving the occupancy or construction completion obligations of Landlord under this Lease caused by GEI shall be deemed to exclusively be caused by Landlord, and shall give rise to Tenant’s right to Terminate
this Lease. If the Lease is terminated by Tenant as a result of GEI Interference, the termination provisions of Section 26.2 shall continue to apply, but in addition to payment of the Amortized Termination Reimbursement, Landlord shall be
liable for payment of all commercially reasonable relocation costs incurred by Tenant to obtain and occupy alternative space and the rent for such alternative space for a period equal to six (6) months plus the period of delay caused by the GEI
Interference. Landlord understands that the GEI employee occupying the desk in the Put-Back Space will have no rights of access to any part of the Existing Renovated Office Space, the New Office Space or the Lab Space and upon any violation of such
prohibition Tenant may demand such GEI employee to be removed from the Put-Back Space, and Landlord shall immediately comply with such direction. 
 
4.4. Condition of Premises. Landlord represents that the land development plan for the Building has been approved
by the appropriate Governmental Authorities (defined herein). Landlord shall deliver possession of the Premises on the Commencement Date free of 
 

18 

any holdover tenants (other than with respect to GEI as specified in Section 4.3)
and retention of possession of any kind by any occupant whatsoever. The Premises and any equipment and fixtures located therein shall be thoroughly cleaned and in a “move-in” condition, not requiring any further custodial or remedial
action by Tenant in order to achieve the appropriate condition for Tenant to commence to operate its business in the Existing Renovated Office Space as of February 1, 2003, in the applicable Phase as of the related Phase Commencement Date, and in
the remainder of the Put-Back Space, as of May 2, 2003. As part of the Landlord’s Work, Landlord shall specifically arrange for and effect, on or before May 31, 2003, solely at Landlord’s cost, (a) the removal from the Building of the (i)
spray painting machine, and (ii) the 14’ by 15’ rotating file unit, (b) the deconstruction and removal of the metal mezzanine and parts carousel from the Building, and (c) the repair of the epoxy floor in the cafeteria in a fashion that
permanently removes the existing bubbling condition. 
 
4.5. Commencement Date Agreement. On the earlier of (a) thirty (30) days after each Phase Commencement Date, or (b) the date Tenant takes occupancy of each Phase, the Parties will execute a letter substantially in the
form of the attached Exhibit I (a “Commencement Date Agreement”) for the purpose of confirming the Phase Commencement Date with respect to the New Office Space, or the Commencement Date with respect to the entire Premises,
the Expiration Date, the rentable area of the Building pursuant to the terms of this Lease and the annual Base Rent. After the Substantial Completion of the Vivarium, Tenant may record the Commencement Date Agreement on the applicable land records
in accordance with Section 50 hereof. 
 

	 	5.	 	Renewal of Initial Term. 

 
5.1. Renewal Terms. Provided there then exists no Event of Default under this Lease, Landlord grants Tenant the
option to renew the Initial Term for two (2) renewal terms (“Renewal Terms”) of sixty (60) months each, exercised by written notice to Landlord given not less than twelve (12) months prior to the Expiration Date (the
“Renewal Notice”), or the expiration of the then current Renewal Term. The Renewal Term shall be governed by the provisions of this Agreement, except that the Base Rent for the Renewal Term shall be calculated in accordance with
Section 5.2 to this Lease, and following the exercise by Tenant of the first option to renew, there shall be only one option to renew remaining, and following exercise by Tenant of the second option to renew, there shall be no further options
to renew, it being the Parties intention that this Lease shall not be extended, after exercise of all options to renew, beyond twenty (20) years from the Commencement Date subject to Section 4.1. The Initial Term and Renewal Term, if and when
exercised, are hereinafter sometimes referred to together as the “Term”. 
 
5.2. Renewal Term Rent. 
 
A. The Base Rent for each Renewal Term shall be 95% of the then “Market Base Rental Rate” (defined herein), but
not less than the Bast Rent in effect for the last year of the initial Term or current Renewal Term, as applicable subject to the adjustment in Subsection C. below. As used in this Lease, “Market Base Rental Rate” shall mean
the market 
 

19 

annual net rental rate (exclusive of expense pass-through additions, whether characterized
as such or not, which are similar to the categories described in Sections 6.1.B. and C. below) per rentable square foot of each segment of Premises (Existing Renovated Office Space, Lab Space, New Office Space and Put-Back Space) and for the
time period as to which such rate is being determined, that a willing tenant would pay and a willing landlord would accept, in arm’s length bona fide negotiations (taking into consideration all relevant factors including, without limitation,
the following factors: rent being charged in other first class lab, office and warehouse buildings located in the Center, for leases then being entered into for comparable space to the Premises for which the Market Base Rental Rate is being
determined; location, quality, amenities, age and reputation of the buildings in which the space being compared is located; use and size of the space under comparison; location and/or floor level of the Premises and any comparison space within their
respective buildings, including view, elevator lobby exposure, etc.; definition of “net rentable area” applicable to the spaces; distinction (if any) between “gross” and “net” rental rates and type, base year or dollar
amount for escalation purposes (both operating costs and real estate taxes) if the comparison is on a “gross” lease basis; any other adjustments (including through use of an index) to base rental; extent of services provided or to be
provided; extent and condition of leasehold improvements in the Premises and in any comparison space; abatements pertaining to the Premises and to any comparison space (including with respect to base rental, operating expense and/or real estate
taxes); inclusion of parking charges in rental, if applicable; lease takeovers/assumptions by the landlord of the comparison space, if applicable; moving allowances granted, if any, in connection with the Premises and with respect to any comparison
space; relocation allowances granted, if any, in connection with the Premises and with respect to any comparison space; club memberships granted, if any; construction, refurbishment and repainting allowances granted, if any, in connection with the
Premises and with respect to any comparison space; any other concessions or inducements in connection with the Premises and with respect to any comparison space; term or length of lease of Premises and of any comparison space; overall
creditworthiness of Tenant and lessees in comparable space; the time the particular rental rate under consideration was agreed upon and became or is to become effective; and payment of a leasing commission, fees, bonuses or other compensation
whether to Tenant’s representatives or to Landlord (or to any person or entity affiliated with Tenant or Landlord or otherwise). 
 
B. Landlord shall designate the Market Base Rental Rate within thirty (30) days prior to the date required for
Tenant’s issuance of the Renewal Notice. If Tenant disagrees with Landlord’s designation of the Market Base Rental Rate, then Tenant shall have the right, by written notice given within thirty (30) days after Tenant has been notified of
Landlord’s designation, to submit such Market Base Rental Rate to an appraisal process for evaluation of the Market Base Rental Rate. Market Base Rental Rate shall be submitted to an appraisal process as follows: Landlord and Tenant shall each
appoint an independent appraiser, who shall have the MAI designation, to establish the Market Base Rental Rate, and a third to be selected, if necessary, as below provided. The unanimous written decision of the two first chosen, or otherwise, the
average of the three appraisals from the three appraisers chosen and selected as provided herein, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen appraiser within ten (10) days

 

20 

following the call for such evaluation and, each appraiser shall render its valuation
within twenty (20) days following the call for same. Unless such two appraisers shall have reached a unanimous decision within forty (40) days after the call for such evaluation, they shall, within such forty (40) day period, jointly select and
designate an impartial third appraiser, also with the MAI designation, to determine Market Base Rental Rate. Such third appraiser shall render its opinion within ten (10) days of its designation. Landlord and Tenant shall bear the expense of the
third appraiser (if any) equally. If such two appraisers are unable to agree on an impartial third appraiser, the Parties agree to contact the local chapter of the American Society of Appraisers for the appointment of such third appraiser. If the
dispute between the Parties as to a Market Base Rental Rate has not been resolved before the commencement of Tenant’s obligation to pay rent based upon such Market Base Rental Rate, then Tenant shall pay Base Rent and other charges under this
Lease for the Premises based upon the Market Base Rental Rate designated by Landlord until either the agreement of the Parties as to the Market Base Rental Rate, or the decision of the appraisers, as the case may be, at which time Tenant shall pay
any underpayment of rent and other charges to Landlord, or Landlord shall credit any overpayment of rent and other charges to Tenant. 
 
C. In determining the Base Rent for each Renewal Term, either the Parties voluntarily, or the appraisers pursuant to the
appraisal procedure outlined above, will reduce the Rent otherwise computed thereunder by an amount which reflects that portion of the recomputed Rent attributable to any Tenant Alterations made subsequent to the Original Lease Execution Date, the
TI Work (to the extent of the Tenant’s Construction Cost Share), and the Tenant Fixturing Work. The purpose of this adjustment is to avoid Tenant paying any Rent increase related to that portion of the construction of the Premises paid for by
Tenant and for which no Base Rent relating to such construction was charged during the Initial Term. In making such adjustment, the Parties or the appraisers, as applicable, shall take into account the useful life, age, level of obsolescence, and
the consequent contribution to future Rent, of any such TI Work, Tenant Alterations and/or Tenant Fixturing Work, and shall appropriately discount the impact of such items on the recomputed Rent. 
 

	 	6.	 	Rent. 

 
6.1. Definitions. 
 
A. “Tenant’s Proportionate Share” means (i) as of the Original Lease Execution Date, 0 %;
(ii) as of the Existing Renovated Office Space Occupancy Date, 21.71%; (iii) as of the Phase Commencement Date for the New Office Space portion of the Second Phase, 41.63%; (iv) as of the Phase Commencement Date for the entire Second Phase,
93.73%, and (iv) as of the Phase Commencement Date for the Vivarium Phase, 100%. 
 
B. “Real Estate Taxes” shall mean all taxes and assessments levied, assessed or imposed at any time by any municipality, town, county, state, the United States of America, or any
department, agency, division, bureau or instrumentality thereof, or any other governmental authority (a “Governmental Authority”), upon or against the Building and the Land (but excluding any other portion of the Center), and also
any tax or assessment levied, 
 

21 

assessed or imposed at any time by any Governmental Authority in connection with the
receipt of income or rents from the Premises to the extent that the same shall be in lieu of (and/or in lieu of an increase in) all or a portion of any of the aforesaid taxes or assessments upon or against the Premises. Tenant shall not be required
to pay any municipal, state or Federal income or excess profits taxes assessed against Landlord, or any municipal, state or Federal capital levy, estate, succession, inheritance or transfer taxes of Landlord, or corporation franchise taxes imposed
upon the corporate owner of the fee of the Premises. 
 
C. “Operating Expenses” shall mean that part of any and all expenses reasonably incurred by Landlord pursuant to Landlord’s obligations under this Lease in connection with its maintenance and operation
of the Building, the Land, excluding Real Estate Taxes and interest or amortization payments on any mortgage, but including, without limitation, electricity (other than as billed directly to Tenant based on usage), insurance maintained on the
Building, all direct and indirect labor costs, management fees, service contracts and supplies used in connection with the cleaning, operating, labor and maintenance of the exterior portion of the Building and the Land, including snow removal from
the parking areas and walkways on the Land, all repairs (other than required of Landlord under Section 15.1.B) required to be performed by Landlord as provided for in this Lease (other than the Landlord’s Work), all periodic
assessments (“Declaration Assessments”) against the Premises by the owner’s association for the Center made pursuant to the Amended and Restated Declaration of Easements and Protective Covenants and Restrictions for Eagleview
Corporate Center as amended and supplemented from time to time (the “Declaration”), building supplies, equipment, purchases and maintenance, parking lot lighting and maintenance, removal of trash, rubbish, garbage and refuse
repairing of paving, curbs, walkways, directions or other signs, drainage, maintenance of fire sprinkling systems (if any), and such other expenses as Landlord may reasonably deem necessary and proper in connection with the operation and maintenance
of the Premises excluding (other than as provided below) any costs which under generally accepted accounting principles are capital expenditures. Landlord agrees that all such services will be provided and materials supplied, either directly by
Landlord, or from third parties, at commercially reasonable and competitive market rates. Operating Expenses shall also include the annual amortization (over the anticipated useful life) of a capital improvement falling within any of the following
categories: (i) a labor saving device or improvement which is intended and reasonably expected to reduce or eliminate any other component of Operating Expenses; (ii) an installation or improvement required by reason of any Legal Requirement, that
did not exist on the date of this Lease and is generally applicable to similar buildings; (iii) an installation or improvement which directly enhances safety of tenants in the Building or Center. Landlord shall have the right to bill Tenant directly
for any items of Operating Expenses which can be attributed directly to Tenant’s use upon the condition that such items are excluded from the definition of “Operating Expenses”. Operating Expenses shall not include costs to
repair or replace defective Landlord’s Work during the Warranty Period, or the cost of Landlord’s fulfilling its obligations under Section 15.1.B. As long as The Hankin Group, or any affiliate controls the Eagleview Corporate Center
Owner’s Association, only such Declaration Assessments as are applied in a non-arbitrary manner to Tenant/and or other owners in the Center (as opposed to special assessments against the Premises) shall constitute Operating Expenses under this
Lease. 
 

22 

 
6.2. Base Rent. Tenant shall pay Landlord the following Base Rent (“Base Rent”) during the specified time periods during the Initial Lease Term: 
 
(i) no Base Rent from the Original Lease Execution Date through January 31, 2003;

 
(ii) $12,663.44 per month
(17,367 sf x $8.75/sf divided by 12) on February 1, 2003 and the first day of each month thereafter until the Phase Completion Date for the Second Phase; 
 
(iii) $77,947.95 (17,367 + 20,873 + 11,938 + 24,802 sf x $8.75/sf divided by 12 plus $23,275.03 Tenant Allowance Payment)
per month from the Phase Completion Date for the Second Phase until the Phase Completion Date for the Vivarium Phase; 
 
(iv) $81,608.36 per month ($58,333.33 plus $23,275.03 Tenant Allowance Payment) from the first day of the month following
the Phase Commencement Date for the Vivarium Phase, and the first day of each month thereafter through the fifth anniversary of the Commencement Date. 
 
(v) $86,608.36 per month ($63,333.33 plus $23,275.03 Tenant Allowance Payment) from the first day of the month occurring
after the fifth anniversary of the Commencement Date and the first day of each month thereafter until the first day of the last month of the Initial Term. 
 
Installments of Base Rent shall be due on the first day of each calendar month, subject to adjustment as set forth in
Section 6.5. All Base Rent shall be payable, in advance, and without prior notice or demand, at the address of Landlord set forth in Section 38 of this Lease or at such other place, or to such other person as Landlord may from time to
time direct in accordance with the notice provision set forth in Section 38. 
 
6.3. Taxes and Operating Expenses. 
 
A. In addition to Base Rent, Tenant shall pay to Landlord as Additional Rent in equal monthly
installments one twelfth (1/12) of annual Real Estate Taxes and Operating Expenses, and such other amounts specified as “Additional Rent” in this Lease. Tenant shall also pay to Landlord as Additional Rent an administrative fee
equal to the amount specified under Section 15.1. Such Additional Rent (inclusive of the administrative fee) shall be payable at the time of payment of each monthly installment of Base Rent, based upon the most recent costs of Operating
Expenses and Real Estate Taxes available, but subject to the following schedule: 
 
(i) For the period from the Original Lease Execution Date until the Phase Commencement Date for the New Office Space
portion of the Second Phase, $2,363.36 per month (17,367 sf x $1.633 divided by 12); 
 

23 

(ii) For the period from the Phase Commencement Date for the New Office
Space portion of the Second Phase until the Phase Commencement Date for the Second Phase, $3,987.92 per month (17,367 + 11,938 sf x $1.633 divided by 12). 
 
(iii) For the period from the Phase Completion Date for the Second Phase until the Phase Completion Date for the Vivarium
Phase, $10,203.53 per month (17,367 + 20,873 + 11,938 + 24,802 sf x $1.633 divided by 12). 
 
(iv) For the period from the first day of the month following the Phase Completion Date for the Vivarium Phase until the
issuance of a statement pursuant to Section 6.5, $10,886.67 per month. 
 
B. With respect to Real Estate Taxes that may lawfully be paid in installments over a period of years, with or without interest, Tenant shall be obligated to pay only such installments and interest as
are required to be paid before any fine, penalty, interest or cost may be added thereto for the nonpayment of any such installment and interest and shall not be required to pay any such installments or interest which are for assessments imposed for
the period accrued and lawfully payable after expiration or termination of the Term; all subject to the following terms and conditions: 
 
(i) Nothing herein contained shall be construed as obligating Tenant to pay Real Estate Taxes or installments of special
assessments that may be payable after the expiration of the Term except to the extent applicable for a portion of the Term; 
 
(ii) Landlord shall pay an allocable pro rata portion of the Real Estate Taxes and installments of special assessments
payable with respect to the Premises for the year the Term commences and the year in which the Term ends, based upon the ratio of the number of days in such year not within the Term bears to 365 days, and Tenant shall pay the balance of said Real
Estate Taxes and installments of special assessments for such years; 
 
(iii) Commencing on the Commencement Date, Tenant shall pay all charges for heat, gas, water, electric, trash and sewage disposal for the Premises, which are billed directly by the providers of the
same to Landlord as the owner of the Building; provided, however, that the Parties intend that all such charges will be separately metered, or separately billed, to Tenant. For the period between the Original Lease Execution Date and the
Commencement Date, Tenant shall pay such charges as are related to the Existing Renovated Office Space. Additionally, for the period between the First Phase Commencement Date and the Commencement Date, Tenant shall pay such charges as are related to
the New Office Space. 
 
6.4.
Tenant Contests. Tenant may, at its own expense, in good faith contest the amount or validity of any Real Estate Taxes, and may delay the payment of same pending the outcome of such contest if such delay will not subject Landlord to liability
for such non-payment. Tenant shall be entitled to any refund of any Real Estate Taxes and penalties and interest thereon received by Landlord which have been paid by Tenant, or which have been paid by Landlord but for which Landlord has been
previously reimbursed in full by Tenant. Landlord 
 

24 

shall join in any proceedings referred to in this Section 6.4 if the provisions of
any Law (defined herein) shall require that such proceedings be brought by or in the name of Landlord. Landlord shall, at Tenant’s request, reasonably cooperate with Tenant’s prosecution of such proceedings (e.g. providing relevant
information within Landlord’s possession or control, attending or testifying at meetings, etc.) provided that Tenant will reimburse Landlord for all reasonable costs of such cooperation. Landlord shall not ultimately be subject to any liability
for the payment of any fees (including reasonable attorneys’ fees), costs or expenses in connection with such proceedings. Tenant agrees to pay all such fees (including reasonable attorneys’ fees), costs and expenses, or, on demand, to
make reimbursement to Landlord for such payment. Landlord agrees to provide notice to Tenant of an increase in the Real Estate tax assessment within ten (10) days of Landlord’s receipt of such assessment increase. 
 
6.5. Adjustment of Additional Rent.

 
A. Within ninety (90) days of
the expiration of each calendar year Landlord shall furnish Tenant with a written itemized statement of the actual Operating Expenses, Real Estate Taxes, and other costs incurred for such year for which Tenant is charged Additional Rent under this
Lease (“Landlord’s Statement”). Within thirty (30) days of the rendition of Landlord’s Statement, either Tenant shall pay any amounts in excess of those collected pursuant to the payments on account of Real Estate Taxes
and Operating Expenses pursuant to Section 6.3 hereof or Landlord shall credit to Tenant the amount of any payments made by Tenant in excess of the amounts so due. If the first and/or last years of the Term of this Lease shall not be full
calendar years, then Tenant’s obligation for Operating Expenses and Real Estate Taxes attributable to such years shall be pro rated. Landlord agrees to promptly provide to Tenant back up invoices for items included in Landlord’s Statement
following Tenant’s written request. 
 
B. Landlord shall properly maintain its books and financial records evidencing expenditures for Operating Expenses, Real Estate Taxes and all other items for which Landlord is entitled to charge Tenant Additional Rent. Tenant shall
have the right, on an annual basis, during reasonable business hours following five (5) business days written notice to Landlord, to inspect, or have its accountants inspect, such financial records, which inspection shall be at Tenant’s expense
and conducted no later than sixty (60) days following the later of (i) issuance of Landlord’s Statement or (ii) receipt of back up invoices as specified in Subsection A. above. Such audit shall be performed by a certified public
accountant who is not compensated on a contingent basis dependent upon identifying discrepancies revealed by the audit. If it is determined following such audit, either by agreement of Landlord and Tenant or following a judicial determination, that
Landlord has overstated Additional Rent charged to Tenant under this Lease and Tenant has paid the overpayment, Landlord shall refund Tenant’s overpayment within thirty (30) days of such determination. Additionally, if such overstated
Additional Rent is five (5%) percent more than the actual aggregate Additional Rent for any year, Landlord shall reimburse Tenant for its reasonable out of pocket expenses incurred in connection with such inspection. If it is determined following
such audit that the Operating Expenses are greater than 
 

25 

those reported to and paid by Tenant, Tenant shall pay the deficiency, without interest,
to Landlord within thirty (30) days of such determination. 
 
6.6. Rent Pro-Ration. If this Agreement is terminated prior to the Expiration Date for reasons other than Tenant’s default and if the effective date of termination is other than the last
day of a month, Base Rent and Additional Rent (collectively “Rent”) shall be pro-rated to the date of termination based upon the number of days in such month, and Landlord shall refund to Tenant any Base Rent or Additional Rent paid
but unearned as of the Expiration Date. 
 
6.7. Tenant Delay. Notwithstanding the dates specified in Sections 6.2 and 6.3 with respect to the commencement of, and increases in, the Rent due under this Lease, if the Landlord’s Work with respect to a
Phase is not completed and such Phase is not ready for occupancy by Tenant (as evidenced by a certificate of occupancy) as a result of Tenant Delays (in providing timely responses to requests for information from Landlord during the design and
construction phase of the Project or otherwise), Tenant shall commence paying Rent on the date Landlord would have achieved Substantial Completion but for such Tenant Delays. All Tenant Payment Obligations under this Article 6 shall further be
subject to Tenant’s pro-rata payment obligations under Section 3.10. 
 

	 	7.	 	Additional Rent. 

 
Tenant shall pay to Landlord as “Additional Rent” (in addition to sums payable pursuant to
Section 6.3) the following: 
 
7.1. Expenses Incurred by Landlord as a Result of Tenant’s Default. All sums which may become due by reason of Tenant’s failure to comply with any of the terms, conditions and covenants of this Lease to be kept and
observed by Tenant (after expiration of any applicable cure periods), and any and all damages, costs and expenses (including without limitation reasonable attorneys’ fees) which Landlord may suffer or incur by reason of any default of Tenant
and any damage to the Premises caused by any act or omission of Tenant, together with interest to the date of payment (whether before or after entry of judgment and issuance of execution thereon) at a rate equal to the lesser of five (5%) percent
above the prime interest rate (or similar rate if the prime interest rate is no longer published) of Wachovia Bank or its successor, in effect during the period said payment is due (“Default Rate”) or the maximum amount of interest
chargeable under applicable law. 
 
7.2. Use and Occupancy Taxes. All use and occupancy taxes imposed by any Governmental Authority allocable to the Premises. 
 

	 	8.	 	Put-Back Space Reduction. 

 
A. On the first day of the thirtieth (30th) and the forty-second (42nd) full calendar month after the Commencement Date, Tenant shall have the right to vacate the Put-Back Space and remove the Put-Back Space from the operation of this Lease (“Put-Back Space Reduction”). The date on
which such Put-Back Space Reduction is effected shall be referred to 
 

26 

as the “Reduction Effective Date.” Tenant, as a condition to
exercising such right, shall provide Landlord at least nine (9) months prior written notice of such election. Upon the Reduction Effective Date Landlord shall, at Tenant’s cost (which cost shall be in a commercially reasonable amount),
construct a partition separating the remainder of the Premises from the Put-Back Space and shall apply such finishes to such partitioning as is consistent with Tenant’s adjacent space. Tenant shall have this right with respect to all, but not
less than all of the Put-Back Space, regardless of whether any TI Work has been installed at the Put-Back Space. 
 
B. From and after the Reduction Effective Date, until the Expiration Date (i) the monthly Base Rent due for the remaining
Premises shall be reduced by an amount per month equal to the square footage of the Put-Back Space multiplied by $5.00 per square foot divided by twelve (12), and (ii) Tenant’s Proportionate Share shall be reduced proportionately in accordance
with the square footage reduction in the Premises. 
 
9. Use. Tenant shall use the Premises solely for a warehouse, and for professional, laboratory (for scientific research and development including animal research), laboratory, vivarium and offices used for pharmaceutical research and
development, administrative and commercial activities (collectively, “Permitted Use”). Following prior written notice to Landlord, Tenant shall be permitted to also use the Premises for those operations (a) in compliance with
“Laws” (defined herein), (b) consistent with the nature of the Center and (c) which do not affect Tenant’s required “Sewage Capacity” (as defined herein). 
 

	 	10.	 	Compliance with Law. 

 
10.1. Landlord’s Compliance with Law. 
 
Prior to the Commencement Date, and thereafter in connection with Landlord’s maintenance
and repair of the Premises, Landlord shall promptly observe and comply with all present and future laws, ordinances, requirements, orders, directions, rules and regulations of any Governmental Authority having or claiming jurisdiction, directly or
indirectly, over the Premises or appurtenances of any part thereof (including Public Accommodation Laws and Environmental Laws (as both are defined herein), and such regulations or standards as are or may be promulgated under the Federal
Occupational Safety and Health Act of 1970 or similar federal state or local requirements), whether the same are in force at the commencement of the Term or may in the future be passed, enacted or directed (“Laws”); provided
Landlord shall have no such obligations with respect to complying with such Laws as relate particularly to Tenant’s operations and activities at the Premises. Without limiting the generality of the foregoing, Landlord shall also procure each
and every permit, license, certificate or other authorization now or hereafter required in connection with the lawful and proper use of the Premises for the Permitted Use, but excluding those permits unique to and specifically required by
Tenant’s particular business operations at the Premises, for which Tenant shall be responsible all in accordance with Section 10.3. 
 
10.2. Landlord’s Compliance with Public Accommodation Laws. 
 

27 

A. Landlord covenants that each Phase of the Premises will comply with all
applicable Laws governing non-discrimination in public accommodations and commercial facilities (“Public Accommodations Laws”) as of the applicable Phase Commencement Date, including without limitation the requirements of any
applicable building or health codes, and the Americans with Disabilities Act and all regulations thereunder. 
 
B. Landlord covenants and agrees to complete any and all modifications or improvements which are or become necessary with
respect to the Premises in order to comply with all Public Accommodation Laws, except to the extent resulting from Tenant’s particular manner of use of the Premises. 
 
C. Landlord covenants and agrees to use good faith commercially reasonable efforts to insure
that any and all modifications or improvements undertaken pursuant to this Section are accomplished in a manner which will not substantially interfere with Tenant’s use or possession of, or business operations at, the Premises. 
 
D. Landlord agrees (i) that Landlord shall be
solely responsible, without any reimbursement from Tenant, for meeting its obligations under Subsections A., B. and C. above and (ii) to indemnify, defend and hold harmless Tenant, its officers, directors and employees from and against
any and all claims, liabilities, losses and expenses (including reasonable attorneys’ fees) directly caused by Landlord’s failure to comply with the provisions of this Section, except that Landlord shall not be liable to Tenant for
consequential damages, lost profits or the like. 
 
E. Landlord agrees to permit Tenant, at its option and its expense, subject to the provisions of Section 12 below, to make any modification or improvements to the Premises, which are required by Public Accommodation Laws,
provided that all changes to the Premises are made in compliance with Public Accommodation Laws. 
 
10.3. Tenant’s Compliance with Laws. Tenant shall not use the Premises in violation of any Laws. Tenant shall
procure each and every permit, license, certificate or other authorization now or hereafter required by Tenant’s particular business operations and manner of use of the Premises. 
 
10.4. Negative Covenants of Tenant. Tenant will not: 
 
(i) Use or permit the use of the Premises in
any manner that will tend to create waste or a public or private nuisance; 
 
(ii) Damage the Premises or any part of the Building (ordinary wear and tear excepted); 
 
(iii) Bring into or permit to be kept in the Premises any dangerous, explosive or obnoxious substances, other than such
substances in such amounts as are 
 

28 

both customary in the normal course of Tenant’s business operations and which will
neither violate any applicable Laws nor have a material adverse effect upon the Premises; 
 
(iv) Manufacture or prepare or dispense any food or beverages in the Premises, except for consumption in Premises by
Tenant, its employees or invitees; 
 
(v) Vacate or abandon the Premises, or permit the Premises to be empty or unoccupied unless Tenant reimburses Landlord for any increase in insurance premiums caused as a result of such actions; provided that, if Tenant is otherwise
in compliance with all other terms and conditions of this Lease, if Tenant vacates or abandons the Premises and the Premises remains vacant for twelve (12) months or more, Landlord shall have the right to terminate this Lease, and pay to Tenant, if
such termination occurs during the Initial Term, the pro-rated portion of Tenant’s Construction Cost Share paid by Tenant, determined by multiplying such sum by a fraction, the numerator of which shall be number of days remaining in such
Initial Term, and the denominator of which shall be the total number of days in the Initial Term (hereinafter the “Termination Reimbursement”). 
 
(vi) Do or suffer to be done, any act, matter or thing objectionable to the fire insurance
companies or Board of Underwriters whereby the fire insurance or any other insurance now in force or hereafter to be placed on the Premises or the Building or Center shall become void or suspended, or whereby the same shall be rated as a more
hazardous risk than at the Commencement Date. Tenant agrees to pay to Landlord as Additional Rent, any and all increase in premium of insurance carried by Landlord on the Premises, or on the Building, caused in any way by the occupancy of Tenant.

 
10.5. Landlord’s
Representations. Landlord represents that: 
 
A. To the best of Landlord’s knowledge, without investigation other than review of a Phase I Environmental report for the larger tract of which the Land is a part, neither the Premises nor Landlord is, in connection with the
ownership, use, maintenance or operation of the Premises and the conduct of the business related thereto, in violation of any applicable Laws, federal, state, county or local statutes, laws, regulations, rules, ordinances, codes, standards,
requirements, orders, licenses and permits of any Governmental Authorities relating to environmental matters, including (i) the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Resource Conservation and Recovery Act of 1976, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, and the Toxic Substances Control Act (including any amendments or extensions thereof and any rules, regulations, standards or guidelines issued pursuant thereto), and (ii)
all other applicable environmental laws, rules, standards or requirements, orders, directives, ordinances and regulations of any Governmental Authority having jurisdiction or affecting the Premises (collectively the “Environmental
Laws”). 
 
B. To the best
of Landlord’s knowledge, without investigation, Landlord, its agents, contractors and employees have operated the Premises and have at all times received, handled, used, stored, treated, transported and disposed of all petroleum products and

 

29 

all other toxic, dangerous or hazardous chemicals, materials, substances, pollutants and
wastes, and any chemical, material or substance, exposure to which is prohibited, limited or regulated by any Environmental Law or which even if not so prohibited, limited or regulated, pose a hazard to the health and safety of the occupants of the
Premises or the occupants or owners of Premises (all of the foregoing items hereinafter collectively referred to as “Hazardous Materials”) in substantial compliance with all Environmental Laws. 
 
C. To the best of Landlord’s knowledge
without investigation, there are no existing Environmental Laws requiring any remedial actions or any other work, repairs, construction or capital expenditures with respect to the Premises. Landlord has not received any notice requiring such
remedial actions or any other work, repairs, construction or capital expenditures with respect to the Premises. Landlord has no actual knowledge, without investigation, of any pending investigations by Governmental Authorities in connection with
alleged violations of Environmental Laws at the Premises or at the Center. 
 
D. During the period in which Landlord has owned the Premises, to the best of Landlord’s knowledge without investigation, no Hazardous Materials have been released into the environment, or
deposited, spilled, discharged, placed or disposed of at, on or near the Premises, nor has the Premises been used at such time by any person as a landfill or a disposal site for Hazardous Materials or for garbage, waste or refuse of any kind.

 
E. To Landlord’s knowledge,
there are no electrical transformers or other equipment containing dielectric fluid containing polychlorinated biphenyls in excess of 50 parts per million nor is there any asbestos contained in, on or under the Premises. 
 
F. No notices of any violation of any of the
matters referred to in Subsections A. through E. relating to the Premises or its use by Landlord, or GEI, have been received by Landlord and there are no writs, injunction, decrees, orders or judgment outstanding, no lawsuits, claims,
proceedings or investigations pending or threatened, relating to the ownership, use, maintenance or operation of the Premises, nor is there any basis for such lawsuits, claims, proceedings or investigations being instituted or filed. 
 
10.6. Landlord’s Environmental
Obligations. 
 
A. Prior to the
Commencement Date, and thereafter in connection with Landlord’s maintenance and repair of the Premises and the Center, Landlord shall, at its own expense, promptly observe and comply with all Environmental Laws; provided Landlord shall have no
such obligations with respect to complying with such Environmental Laws that relate to Tenant’s operations and activities at the Premises. 
 
B. Except for those matters which are Tenant’s responsibility under Section 10.7, Landlord shall defend,
indemnify and save Tenant, its officers, directors, agents and employees, harmless from and against all claims, obligations, demands, actions, proceedings and judgments, loss, damage, liability and expense (including reasonable attorneys’ fees
and 
 

30 

expenses) which any one or more of them may sustain in connection with Landlord’s
breach of its covenant in Subsection A. above. 
 
10.7. Tenant’s Responsibility Regarding Hazardous Materials. 
 
A. Tenant’s Compliance with Environmental Laws. Tenant shall notify Landlord promptly in the event of any
presence, disposal, spillage, discharge, omission, leakage or release of any Hazardous Materials at the Premises (except for the Hazardous Materials which are lawfully used and disposed of in the conduct of Tenant’s business, if any and which
Tenant is not required to report to any Governmental Authority under Environmental Laws), and will promptly forward to Landlord copies of any notices sent or received by Tenant relating to alleged violations of Environmental Laws. In the event of
any violation of Environmental Laws by Tenant, its agents, employees or contractors, Tenant shall promptly, at Tenant’s sole cost and expense, take such actions necessary to fully comply in all respects with such Environmental Laws.

 
B. Tenant’s
Restrictions. Tenant shall not cause or permit to occur: 
 
(i) Any violation of any Environmental Laws now or hereafter enacted, related to the Premises or Center, or arising from Tenant’s use or occupancy of the Premises; or 
 
(ii) The use, generation, release,
manufacture, refining, production, processing, storage, or disposal of any Hazardous Material on, under, or about the Premises or Center, except to the extent such activity is incidental to Tenant’s business operations at the Premises and does
not violate any Environmental Laws and the Declaration. 
 
The term “permit to occur” shall mean that Tenant fails to prevent any person or entity that is either affiliated with, or under the control of, Tenant, or which is a licensee or invitee of Tenant at the Premises, to cause
the prohibited act. 
 
C.
Tenant’s Environmental Clean-Up. 
 
(i) Tenant shall, at Tenant’s own expense, comply with all Environmental Laws regulating the use, generation, storage, transportation, or disposal of Hazardous Materials by Tenant, its invitees or agents. 
 
(ii) Tenant shall, at Tenant’s own
expense, make all submissions to, provide all information required by, and comply with all Environmental Laws of any Governmental Authority which are applicable to Tenant’s use and occupancy of, or Tenant’s business operations at, the
Premises. 
 
(iii) Should any
Governmental Authority, or any other third party, demand that a clean-up plan be prepared and that a clean-up be undertaken because of any deposit, spill, discharge, or other release of Hazardous Materials to or from, or on under or about

 

31 

the Premises or Center that occurs at or from the Premises or Center, and which arises at
any time from Tenant’s use or occupancy of the Premises during the Term of this Lease, then Tenant shall, at Tenant’s own expense, prepare and submit the required plans and all related bonds and other financial assurances; and Tenant shall
carry out all such clean-up plans. 
 
(iv) Tenant shall promptly provide all information regarding the use, generation, storage, transportation, or disposal of Hazardous Materials at the Premises that is requested by Landlord. If Tenant fails to fulfill any duty imposed
under this Subsection C. within a reasonable time, Landlord may do so, after notice to and opportunity to cure by Tenant; and in such case, Tenant shall cooperate with Landlord in order to prepare all documents Landlord deems necessary or
appropriate to determine the applicability of the Environmental Laws to the Premises and Tenant’s use thereof, and for compliance therewith, and Tenant shall execute all documents promptly upon Landlord’s request. No such action by
Landlord and no attempt made by Landlord to mitigate damages under any Law shall constitute a waiver of any of Tenant’s obligations under this Subsection C. 
 
Tenant’s obligation to comply with this Section 10.7.C shall be limited to restoration of the
Premises to their condition as existed at the Commencement Date, reasonable wear and tear excepted. Tenant shall under no circumstances be required to provide any confidential or proprietary information to Landlord with respect to Tenant’s
business operations absent Landlord’s presentation to Tenant of an order or judgement issued by a Governmental Authority requiring such information. Landlord agrees to notify Tenant of the issuance of any such judgement or order and allow
Tenant, at Tenant’s sole cost and expense, to rescind or modify same through the conduct of an appeal or other judicial or administrative proceedings; provided, however, that Tenant may conduct such proceeding only after demonstrating to
Landlord’s reasonable satisfaction that such action will not increase Landlord’s potential liability or negatively affect the Premises or the Center. 
 
D. Tenant’s Environmental Indemnity. Tenant shall indemnify, defend, and hold harmless Landlord, the manager
of the Center, and their respective officers, directors, beneficiaries, shareholders, partners, agents and employees from all fines, suits, procedures, claims and actions of every kind, and all costs associated therewith (including attorneys’
and consultants’ fees) arising out of or in any way connected with any deposit, spill, discharge, or other release of Hazardous Materials that occurs at or from the Premises or Center, and which arises at any time from Tenant’s use or
occupancy of the Premises during the Term of this Lease, or from Tenant’s failure to provide all information, make all submissions, and take all steps required by all Governmental Authorities under the Laws and all other Environmental Laws.
Except to the extent caused by Landlord’s breach of its covenant in Section 10.6 above, Tenant shall at Tenant’s own cost and expense, timely comply with all applicable, rules, requirements, orders, directives, ordinances and
regulations arising from Tenant’s use and occupancy of the Premises, including but not limited to the Environmental Laws, and shall indemnify, defend, save and hold harmless Landlord, its directors, officers, agents and employees from and
against any and all claims, demands, losses and liabilities (including reasonable attorneys’ fees) resulting from any violation of the Environmental Laws when caused 
 

32 

by Tenant’s use and occupancy of the Premises. Tenant’s obligation to comply
with this Subsection D. shall be limited to restoration of the Premises (or to the extent Tenant’s activities on the Premises or at the Center affects the Center, the Center) to their condition as existed at the Commencement Date,
reasonable wear and tear excepted. 
 
10.8. Miscellaneous Environmental Provisions. 
 
A. If any environmental condition encompassed within Section 10.6.A. cannot be, or is not, corrected within one hundred eighty (180) days of discovery, Tenant may terminate this Agreement upon
thirty (30) days’ written notice to Landlord delivered within ten (10) days following the expiration of such one hundred eighty (180) day period. Further, during any clean-up period, if Tenant’s use of the Premises is substantially
impaired, Tenant’s obligation to pay Rent shall abate for the portion so impaired provided the environmental condition is not caused by Tenant. 
 
B. The Parties specifically agree that the indemnities of Landlord and Tenant contained in this Section 10 shall
not extend to loss of business, lost profits or consequential damages, except that a violation by Tenant of its obligations under Section 10.7 shall not excuse Tenant’s obligations to make payments of Rent, or to compensate Landlord for
loss of rents suffered by Landlord at the Premises by reason of Landlord’s inability to make the Premises tenantable as a result of Tenant’s breach of Section 10.7. 
 
C. The provisions of this Section 10 shall survive the expiration or earlier
termination of this Agreement. 
 
D. Attached to this Lease and made part hereof is a rider regarding Industrial Waste Discharge within Eagleview Corporate Center. 
 

	 	11.	 	Late Payment. 

 
If any payment required by Tenant under any of the terms hereof shall not be paid on the date it is due, Landlord shall
notify Tenant of such non-payment. If Tenant does not pay the amount due within five (5) business days after Landlord’s notice, Tenant shall owe Landlord as Additional Rent, a late charge equal to, $.06 for each dollar so due, and such late
charge shall be deemed Additional Rent for purposes of this Lease. If Tenant fails to make payment of Base Rent on its due date more than twice in any twelve (12) month period, such late charge will be payable without the requirement of
Landlord’s notice specified in the first sentence of this Section 11. 
 

	 	12.	 	Tenant Alterations. 

 
12.1. Except as hereafter provided, Tenant shall make no alterations, additions or improvements (“Tenant
Alterations”) to the Premises without the consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned. At the time of Landlord’s consent, Landlord shall designate whether Tenant shall be required to
remove the 
 

33 

proposed Tenant Alteration upon termination of this Lease, and the absence of such
designation in Landlord’s written consent shall be deemed Landlord’s agreement that Tenant shall not be obligated to remove the proposed Tenant Alteration upon the termination of this Lease. Landlord also may impose such reasonable
conditions as part of its consent as Landlord deems appropriate, taking into consideration the nature of the proposed Tenant Alteration, including, without limitation, requiring Tenant to furnish Landlord with security for the payment of all costs
to be incurred in connection with such work, insurance, and copies of the plans, specifications and permits necessary for such work. Nothing herein, however, shall be construed to obligate Tenant to construct any Tenant Alterations for which
Landlord has given its consent. 
 
12.2. Landlord’s consent shall not be required for Tenant Alterations which (a) do not adversely impact the structural integrity of the Building or the systems serving the Building or their operation, (b) are not visible from
the Building exterior and (c) qualify under the following: 
 
(i) The Tenant Alteration is to be made to portions of the Premises other than the Lab Space and the cost thereof is $10,000 or less in the aggregate with respect to any Tenant Alteration project (or
$20,000 or less in the aggregate with respect to Tenant Alteration projects undertaken over any twelve (12) consecutive month period); or 
 
(ii) The Tenant Alteration is to be made to the Lab Space and the cost thereof is $50,000 or less with respect to any
Tenant Alteration project (or $100,000 or less in the aggregate with respect to Tenant Alteration projects in the Lab Space undertaken over any twelve (12) consecutive month period). 
 
(iii) Tenant Alterations described in this subsection for which Landlord’s consent is
not required hereinafter are called “Permitted Tenant Alterations.” Notwithstanding the foregoing, painting or carpeting of the interior of the Premises and like cosmetic improvements shall not be deemed Tenant Alterations
regardless of the cost thereof and no Landlord approval will be required for same. Tenant shall not be obligated to remove Permitted Tenant Alterations upon the termination of this Lease unless an Event of Default has occurred which is then
continuing, or unless Landlord determines that such Permitted Tenant Alterations are special purpose alterations, the cost to remove which is in excess of Landlord’s standards for demolition costs, and Landlord so requires such removal.

 
12.3. All Tenant Alterations
shall be done at Tenant’s expense by contractors approved by Landlord, which approval shall not be unreasonably withheld, delayed or conditioned and shall be deemed given unless Landlord notifies Tenant of its objections within ten (10)
business days after delivery of Tenant’s request for such approval. With respect to Tenant Alterations other than the Permitted Tenant Alterations, no work shall be performed until the plans therefore have been approved by Landlord, which
approval shall not be unreasonably withheld, delayed on conditioned and shall be deemed approved unless Landlord notifies Tenant of objections to the proposed plans within ten (10) business days after delivery to Landlord of a complete set of the
plans therefor. In connection with the review of plans submitted by Tenant, Landlord shall be reimbursed by Tenant for Landlord’s cost in reviewing such plans at the rate of 
 

34 

$70 per hour; subject to reasonable increase to reflect the then current hourly charge
imposed for such review by Landlord for its tenants in the Center generally, prior to undertaking any such review. With respect to Permitted Tenant Alterations, Tenant shall provide Landlord with a copy of Tenant’s application for a building
permit therefor, if applicable (together with all attachments thereto), and copies of all plans at least ten (10) days before work commences, and no review fee shall be charged to Tenant by Landlord in connection therewith nor shall Landlord’s
approval to such application be required. Tenant shall provide copies of as-built plans and specifications for all Tenant Alterations to Landlord within a reasonable time of completion of the Tenant Alterations. All Tenant Alterations, interior
painting, carpeting and like cosmetic improvements shall be done in a first class, workmanlike manner and shall comply with all insurance requirements, and, where applicable, with all reasonable requirements of Landlord imposed as a condition of
such consent. 
 
12.4. If, pursuant
to this Lease, removal of a Tenant Alteration is required at termination of this Lease, Tenant alone shall be entitled to deduct all depreciation of Tenant Alterations on Tenant’s income tax returns. Upon expiration or earlier termination of
this Lease, Tenant shall promptly remove such Tenant Alterations and repair any damage occasioned by such removal, reasonable wear and tear and damage by insured casualty excepted. In default thereof, Landlord may effect said removal and repairs at
Tenant’s expense. With respect to any Tenant Alterations which Tenant is not obligated to remove hereunder (including without limitation Permitted Tenant Alterations), such Tenant Alterations, if not removed by Tenant upon the termination of
this Lease, shall be deemed abandoned by Tenant, and deemed a part of Landlord’s property, notwithstanding any provision of this Lease to the contrary. 
 
12.5. Except as provided in Section 12.1 above, any property left in the Premises by Tenant shall be deemed to have
been abandoned at the termination of the Lease. Landlord may dispose of such property at Tenant’s expense without notice to Tenant. If Tenant shall fail to remove any of its Alterations, Landlord may remove and store or dispose of the same at
the expense of Tenant in any manner as Landlord determines without liability to Tenant. 
 

	 	13.	 	Mechanic’s Liens. 

 
Prior to Landlord or Tenant performing any construction or other work on or about the Premises for which a lien could be
filed against the Premises, the applicable Party shall enter into a written waiver of liens agreement with the contractor who is to perform such work, and such written agreement shall be filed, in accordance with the mechanics’ lien law of the
State or Commonwealth in which the Building is located, prior to the commencement of such work. Notwithstanding the foregoing, if any mechanics’ or other lien shall be filed against the Premises purporting to be for labor or material furnished
or to be furnished at the request of Tenant or Landlord, then the applicable Party shall at its expense cause such lien to be discharged of record by payment, bond or otherwise, within ten (10) days after the filing thereof. If such Party shall fail
to cause such lien to be discharged by payment, bond or otherwise within such period, the other Party may thereafter cause such liens to be discharged by payment, bond or otherwise, without investigation as to the validity thereof or as to any
offsets or defenses 
 

35 

thereto, and the Party responsible for performing such work shall, upon demand, reimburse
the other for all reasonable amounts paid and costs incurred, including attorneys’ fees, in having such lien discharged of record. 
 

	 	14.	 	Condition of Premises. 

 
14.1. Landlord Representations. Landlord represents and warrants that as of the date hereof: 
 
A. Landlord does not have knowledge of, or
reason to believe that there are, grounds for the filing of a lien against the Premises; 
 
B. Landlord does not have knowledge of any pending or threatened condemnation or similar proceeding affecting the Premises
or any portion thereof; 
 
C.
Landlord does not have knowledge of any legal actions, suits, or other legal or administrative proceedings, pending or threatened against the Premises; 
 
D. Except as specified with respect to GEI under Section 4.3 Landlord has granted no leases or license, nor created
any tenancies, affecting the Premises and there are no third parties in possession of any portion of the Premises as trespassers or otherwise; 
 
E. The Premises have adequate legal access to abutting public highways, streets and roads either directly or through
private roads in the Center over which Tenant has vehicular and pedestrian rights pursuant to this Lease; 
 
F. Landlord does not have knowledge of any pending or threatened governmental or private proceedings which would impair or
result in the termination of access from the Premises to abutting public highways, streets, and roads or the Center; 
 
G. Landlord has provided Tenant with complete copies of all environmental reports, test results and inspections conducted
by or at the request of Landlord or that are in Landlord’s possession with respect to the Premises, but Landlord disclaims any warranty, express or implied, as to the accuracy or reliability of such reports; 
 
H. There is presently in existence or
available adequate water, electrical, and gas utility service and available sewage capacity of 5500 gallons per day for the Premises (the “Sewage Capacity”); 
 
I. The Permitted Use does not, and the Building as constructed and after construction in
accordance with the Final Plan, will not, contravene applicable building, zoning and land development ordinances and all conditions of applicable zoning, subdivision and land development approvals imposed on the Permitted Use (collectively
“Development Approvals”); 
 

36 

J. Except for impact fees to be paid by Landlord, Landlord has no
knowledge of any pending or deferred special assessments affecting the Premises; 
 
K. There are no special taxes or assessments which are currently a lien against the Premises or, to Landlord’s knowledge, proposed; 
 
L. No easements burdening the Premises will interfere with the use, maintenance, repair,
construction, reconstruction or operation of the Improvements, and all easements necessary for the lawful operation of the Premises, including all access, ingress, support and mechanical easements necessary or incidental thereto, are in full force
and effect and are not subject to termination, cancellation or rescission; 
 
M. Landlord has received no notice from any Governmental Authority that Landlord has not met, or cannot meet, any requirements for obtaining a certificate of occupancy or any other approval required
for the construction or operation of the Premises for the Permitted Use; 
 
N. The lease of the Premises and construction of the Improvements under this Lease and the operation of the Improvements by Tenant in the normal course of its business for the Permitted Use will not
cause a violation, default or breach of any Development Approval, the Declaration or, to Landlord’s knowledge, any recorded easements, covenants or restrictions affecting title to the Premises; and 
 
O. Landlord has beneficial, marketable and
insurable (at ordinary rates charged by any reputable title company doing business in the greater Philadelphia area) title to the Premises subject to no encumbrances other than (i) building, building line and zoning restrictions, (ii) real estate
taxes for the then current year which are not yet due and payable, (iii) utility and other easements which have no material adverse effect on Tenant’s use and enjoyment of the Premises, (v) any Mortgage (defined herein) subject to a
Non-Disturbance Agreement (defined herein) with Tenant, (vi) such other non-monetary covenants, restrictions, easements and agreements of record which have no adverse impact on the use or value of the Premises or Tenant’s Permitted Use thereof,
and (vii) and any title exceptions created by Tenant’s actions (“Permitted Exceptions”). 
 
14.2. Tenant Acknowledgment. Tenant acknowledges and agrees that, except as expressly set forth in this Lease,
there have been no representations or warranties made by or on behalf of Landlord with respect to the Premises or with respect to the suitability of the Premises for the conduct of Tenant’s business. 
 

	 	15.	 	Maintenance of Premises. 

 
15.1. Landlord Obligations. 
 
A. Landlord shall provide common area maintenance necessary to maintain the Premises and the
Center in first-class condition similar to other buildings located in 
 

37 

the Center, including cleaning, operating, and maintaining the exterior portion of the
Building, prompt and complete snow and ice removal from all roads and sidewalks, lawn mowing and routine landscaping of the unimproved areas, and maintenance and repair of all drainage systems, roads, sidewalks, parking areas, curbs and any other
paved areas (and the outdoor electrical fixtures used to provide nighttime lighting thereto), and the removal of trash, rubbish, garbage and refuse from the Premises. Landlord shall also maintain all electrical supply systems, sanitary sewer and
runoff sewer systems and all other utilities (underground or otherwise) servicing the Center. The cost of such services shall be paid by Tenant pursuant to Section 6.3. Tenant shall also pay Landlord an administrative fee for providing such
services Additional Rent equal to four (4%) percent of the Real Estate Taxes and Operating Expenses (other than costs of electricity and gas and management fees incurred by Landlord). 
 
B. Landlord shall be responsible for the replacement, but not the customary maintenance and
repair of, all Building systems, including without limitation, plumbing, sprinkler, HVAC, Building electrical and mechanical lines and equipment associated therewith, and elevators and boilers and/or shall also be responsible for the repair and/or
replacement of exterior and interior structure of the Building, including the roof, exterior walls, bearing walls, support beams foundation, columns, exterior doors and windows, floors, floor slabs and lateral support to the Building (the
“Structural Components”). Landlord shall maintain and repair sewer lines and utility lines to the Building. Landlord shall have no obligation to repair or replace interior carpeting, tile and similar floor coverings unless such
repair or replacement is required in connection with Landlord’s fulfilling its duties in connection with repair or replacement of the floor or floor slab or other structural items. Tenant shall have no obligation to reimburse Landlord for the
cost of Landlord fulfilling its obligations under this Subsection B.; provided, however, in no event shall Landlord be obligated to repair any damage caused by any act, omission or negligence of Tenant or its employees, agents, invitees,
licensees, subtenants or contractors, all of which shall be the responsibility of Tenant. 
 
C. Landlord shall assign and, where applicable, deliver to Tenant any warranties and service contracts which may pertain
to Tenant’s repair obligations hereunder. Landlord agrees to cooperate with Tenant in the enforcement by Tenant, at Tenant’s sole cost and expense (if not related to Landlord’s duties under Subsection B.), of any warranties by
any subcontractors, or other third parties with respect to the design, workmanship or materials related to the Landlord’s Work. 
 
D. During the Warranty Period, and at any time during the Lease Term with respect to the Structural Components, any
expenses incurred by Landlord in connection with Landlord’s obligations pursuant to Section 3.12, shall not be included as part of Operating Expenses. Landlord’s obligations under Subsection B. shall continue undiminished
both during and after the running of the Warranty Period. 
 
E. During the final two (2) years of the Term, if Tenant does not enter into an agreement with Landlord extending the Term of this Lease, and if a major component of the HVAC, electrical or plumbing systems cannot be
effectively or efficiently repaired, and must 
 

38 

be replaced, Landlord shall effectuate the replacement, and the cost of such replacement
shall be amortized over the reasonably anticipated useful life of such component, and the pro-rated portion thereof allocable to the remaining term of this Lease in comparison with such useful life, shall be included as part of Operating Expenses.

 
15.2. Tenant Obligations.
Except to the extent Landlord is obligated to make repairs or replacements, as provided in Sections 15.1 above, and 15.2.A. and B. below, Tenant shall make, at its sole cost and expense, all repairs necessary to maintain all
non-structural portions of the Building (ordinary wear and tear excepted), including without limitation, all plumbing, heating, ventilation, air conditioning and electrical lines, pipes, fixtures and equipment not expressly to be maintained by
Landlord, and shall keep the Premises and the fixtures therein in neat and orderly condition. Without limiting the generality of the foregoing, Tenant at its expense is specifically required to make promptly all repairs (a) to that portion of any
pipes, lines, ducts, wires or conduits contained within the Building; (b) to the glass windows, plate glass doors, and any fixtures or appurtenances composed of glass; (c) to Tenant’s sign; (d) to any heating or air conditioning equipment
installed in or servicing the Premises; and (e) to the Premises or to any part of the Center when such repairs are necessitated by any act or omission (negligent or otherwise) of Tenant or Tenant’s agents, employees or invitees, or by failure
of Tenant to perform any of its obligations under this Lease. Tenant at its own expense shall enter into a maintenance contract with a reputable heating and air conditioning service company acceptable to Landlord, for the entire Term, and provide
Landlord with a copy of the same. If Tenant refuses or neglects to make such repairs, or fails to diligently prosecute the same to completion, after written notice from Landlord of the need therefor, Landlord may make such repairs at the expense of
Tenant and such expense shall be collectible as Additional Rent. 
 
15.3. Performance of Landlord Maintenance. Landlord shall accomplish all maintenance for which it is responsible, within a reasonable time following receipt of written notice from Tenant of the
necessity for such repairs; provided, however, that Landlord shall have the maintenance performed as soon as possible after notice from Tenant if a hazardous or emergency situation exists. Landlord shall provide Tenant reasonable prior notice before
commencing such maintenance or repair work. In performing any such work, Landlord shall use reasonable efforts (a) to protect Tenant’s property and personnel from loss or injury and (b) to comply with reasonable rules and restrictions with
respect to access to the Premises based on Tenant’s need for confidentiality and to avoid disrupting Tenant’s regular business routine. Landlord shall commence such repairs or replacements within five (5) days of Tenant’s written
request, provided however, that in an emergency Landlord shall immediately commence said repairs. Should Landlord fail to commence such repairs or replacements within the applicable time period, Tenant shall provide Landlord with written notice of
such failure and except in the event of an emergency in which event said repairs shall be commenced immediately, Landlord shall commence such repairs within five (5) days after receipt of written notice. Should Landlord fail to commence the repairs
or replacement with such five (5) day period, Tenant may complete such repairs or replacements which constitute those repairs or replacements for which Landlord is responsible and Tenant shall be entitled to recover from Landlord the cost thereof.
For purposes of this Section 15.3 an “emergency” shall be a condition at the Premises which 
 

39 

threatens the health or safety of occupants or invitees in or to the Premises or threatens
an immediate, material, adverse impact on the conduct of Tenant’s business operations at the Premises. 
 
15.4. Performance of Tenant Maintenance. Tenant shall accomplish all maintenance for which it is responsible
routinely and, in all events, within a reasonable time following receipt of notice from Landlord. If following notice from Landlord, Tenant fails to make any necessary repairs or perform any necessary maintenance for which Tenant is responsible,
Landlord may have such repairs or maintenance performed and Landlord’s costs of doing so shall be payable as Additional Rent with the next due installment of Base Rent. Any such repairs and any labor performed or materials furnished in, on or
about the Premises shall be performed and furnished by Tenant in strict compliance with all applicable Laws of all Governmental Authorities having jurisdiction over the Building, the requirements of any board of underwriters having jurisdiction
thereof, as well as any reasonable regulations imposed by Landlord pertaining thereto. Without limitation of the foregoing, Landlord shall have the right to reasonably approve any and all contractors and suppliers to furnish materials and labor for
such repairs. 
 
15.5. Landlord
Liability. Landlord shall not be liable for consequential damages for temporary delay or failure in furnishing any services or facilities to be provided by Landlord under this Lease or any other agreement between Tenant and Landlord (or its
agents) or implied by law. In no event shall such delay or failure regardless of cause, constitute an eviction, disturbance of Tenant’s use and possession of the Premises, authorize abatement of rent, relieve Tenant from performance of its
obligations under this Lease, or result in a termination of this Lease. Provided that Landlord shall exercise reasonable efforts to effectuate its repairs or maintenance obligations in a manner which will keep at a minimum Landlord’s
interference with Tenant’s use and occupancy of the Premises, Landlord shall not be liable by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations, additions or improvements in
or to the Premises, or the Building or Center or to any appurtenances or equipment therein. 
 

	 	16.	 	Assignment and Subletting. 

 
16.1. Landlord Consent. Except for an assignment permitted in Section 16.3 below, for which Landlord’s
consent shall not be necessary, Tenant shall not, without the prior written consent of Landlord, assign or mortgage this Lease or any interest therein or sublet the Premises or any part thereof. For the purposes of this Section, and except as
otherwise provided in Section 16.3, the sale or assignment of a controlling interest in Tenant corporation shall be deemed an assignment, provided that such assignee assumes the obligations of Tenant and that such assignment shall not relieve
Tenant of its obligations hereunder. As to any assignment or sublease requiring Landlord’s consent, Landlord agrees that it shall not unreasonably withhold, condition or delay its consent, and shall grant its approval or disapproval of the
proposed transferee, within ten (10) days of Tenant’s request therefor accompanied by such information pertaining to the proposed sublessee or assignee as Landlord requests, provided the business of 
 

40 

Tenant’s assignee or subtenant is not materially more hazardous than that of Tenant,
it being understood that it shall not be unreasonable for Landlord to require, as a condition of such consent, that fifty percent (50%) of any money or other economic consideration received by Tenant as a result of such subletting or assignment (the
“Assignment Payment”), whether denominated as Rent under the sublease or otherwise, which exceeds, in the aggregate, the total sums which Tenant is obligated to pay Landlord under this Lease (pro rated to reflect obligations
allocable to that portion of the Premises subject to the sublease or assignment) shall be payable to Landlord as Additional Rent under this Lease without affecting or reducing any other obligation of Tenant hereunder. 
 
16.2. Other Conditions. Regardless of
Landlord’s consent, no subletting or assignment shall release Tenant of Tenant’s obligations or alter the primary liability of Tenant to pay the Rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance
of Rent by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. Landlord may consent to
subsequent assignment or subletting of this Lease or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant, or any successor of Tenant, and without obtaining its or their consent thereto and such action shall
not relieve Tenant of liability under this Lease. 
 
16.3. Permitted Tenant Transactions. Notwithstanding anything to the contrary in Sections 16.1 and 16.2 above, Tenant shall have the absolute right to assign this Lease without obtaining Landlord’s prior
written consent thereto: (a) to a corporation or entity which is an affiliate, parent or wholly owned subsidiary of Tenant or Tenant’s parent corporation, if applicable; or (b) to a corporation or entity which is a successor to Tenant by way of
merger or consolidation or corporate reorganization or the purchase of all or substantially all of the assets of Tenant, or (c) to any person or entity that purchases substantially all of Tenant’s assets or stock, provided that in any of such
events the party assuming Tenant’s rights under this Lease enters into an Assignment and Assumption Agreement in form acceptable to Landlord in the exercise of its reasonable discretion. It is further understood that any transfer, sale, pledge
or other disposition and/or power to vote the outstanding shares of corporate stock of Tenant shall not be deemed an “assignment” for which Landlord’s consent is required, in the following situations: (i) the sale or transfer of the
shares of Tenant’s corporate stock by and among the existing shareholders of Tenant as of the Original Lease Execution Date, (ii) any redemption by Tenant of its corporate stock (including stock acquired by shareholders subsequent to the
Original Lease Execution Date), (iii) any sale of stock issued pursuant to a public offering, and (iv) the sale and transfer of fifty percent (50%) or more of the voting interest of Tenant provided that (1) such transfer is made in connection with
(x) Tenant’s sale of substantially all of its assets or ownership interest, or (y) merger or (z) a corporate or entity reorganization, and (2) Tenant and the transferee enter into an Assignment and Assumption Agreement in form acceptable to
Landlord in the exercise of its reasonable discretion. No Assignment Payment shall be payable in connection with any of the permitted Tenant transactions allowed without Landlord’s consent under this Section 16.3. 
 

41 

	 	17.	 	Landlord Access To Premises. 

 
17.1. Landlord Access. Landlord, its employees and agents shall have the right to enter the Premises during
Tenant’s regular business hours for the purpose of (a) examining or inspecting the same, (b) showing the same to any prospective purchaser or Mortgagee (defined herein) at any time during the Term, or to potential tenants during the last twelve
(12) months of the Initial Term, or if Tenant has exercised its renewal option, the last twelve (12) months of the Renewal Term, and (c) performing any maintenance or repairs for which Landlord is responsible under this Lease. Except in case of
emergency as described in Section 15.3, any such entry shall be after reasonable notice to Tenant. If a representative of Tenant shall not be present to open and permit entry into the Premises at any time when such entry by Landlord is
required for emergency access or otherwise permitted hereunder, Landlord may enter by means of a master key (or forcibly in the event of any emergency) without liability to Tenant and without such entry constituting an eviction of Tenant or
termination of this Lease. All keys must be returned to Landlord at the expiration or termination of this Lease. 
 
17.2. Landlord Conduct. Landlord shall conduct its activities in the Premises in a manner that will not cause any
unreasonable interference with Tenant’s business operations and Landlord shall observe all reasonable rules and conditions imposed by Tenant in connection with Landlord’s activities, including those imposed to protect the proprietary
operations conducted, and information stored or on display, at the Premises. 
 

	 	18.	 	Surrender of Premises. 

 
At the end of the Term of this Lease, Tenant shall surrender the Premises to Landlord, together with all alterations,
additions and improvements thereto, in broom clean condition and in good order and repair except for ordinary wear and tear, casualty, and other damage for which Tenant is not obligated to make repairs under this Lease. Tenant’s and
Landlord’s respective rights upon surrender to any Alterations placed or installed in the Premises by Tenant, shall be governed by Section 12.4. Tenant shall surrender the Premises to Landlord at the end of the Term, without notice of
any kind from Landlord, and Tenant waives all right to any such notice as may be provided under any Laws now or hereafter in effect in the State or Commonwealth in which the Premises are located. 
 

	 	19.	 	Indemnification. 

 
19.1. Tenant Indemnification. Tenant covenants and agrees that it shall, without notice or demand and at its own
cost and expense, subject to the waiver of subrogation provisions contained in Section 20.6, indemnify and save harmless Landlord against and from, and Landlord shall not be liable to Tenant for, any and all claims by or on behalf of any
person arising in any manner whatsoever from, out of or in connection with: 
 
A. The use and occupancy of the Premises by Tenant, its agents, employees and invitees, 
 

42 

B. Any failure by Tenant to perform any of the terms or conditions of this
Lease required to be performed by Tenant, 
 
C. Any failure by Tenant to comply with any Laws of any Governmental Authority in connection with the operation of its business at, or the performance of its obligations under this Agreement with respect to the Premises or the
Center; or 
 
D. Any accident,
death, injury, or damage, loss or theft of property in or about the Premises, unless such accident, death, injury, damage, loss or theft is caused by the acts or omissions of Landlord, its constituent partners, or the agents, employees contractors
or invitees of any of them and from and against all costs, attorney fees, expenses and liabilities incurred in or as a result of any such claim or action or proceeding brought against Landlord by reason of any such claim. Tenant, upon notice from
Landlord, covenants to resist or defend such action or proceeding by legal counsel reasonably satisfactory to Landlord. 
 
19.2. Landlord Indemnification. Landlord, subject to the waiver of subrogation provisions contained in Section
20.6, shall indemnify, defend and hold Tenant harmless from and against all claims, actions, demands, judgments, damages, liabilities and expenses, including reasonable attorneys’ fees, for death of or bodily injury to any person or for
loss of, damage to or destruction of any Premises arising from Landlord’s entry upon or use of the Premises or that of its agents, employees and contractors, or Landlord’s failure to perform any of its obligations under this Lease which
can only be fulfilled by Landlord’s entry on the Premises and for which Tenant shall have provided Landlord with reasonable prior notice of the need to perform, except for any such claims, actions, demands, judgments, damages, liabilities or
expenses arising from the acts or omissions of Tenant, its constituent partners, or the agents, employees, contractors or invitees of any of them, or any proceeding brought against Tenant by reason of any such claim. Landlord, upon notice from
Tenant, covenants to resist or defend such action or proceeding by legal counsel reasonably satisfactory to Tenant. 
 
19.3. The indemnification obligations under this Article 19 shall not be limited in any way by any limitation on the
amount or type of damages, compensation or benefits payable by or for the indemnitor, or any other person, under Workers or Workman’s Compensation statutes, disability benefits statutes or other employee benefit laws. 
 

	 	20.	 	Insurance. 

 
Landlord and Tenant shall keep in force the insurance specified in this Section 20 on the following terms and
conditions: 
 
20.1. Tenant
Liability Insurance. Tenant shall obtain and keep in force during the Term of this Lease, at its expense, with an insurer(s) holding a Best Rating of B+ or higher and reasonably acceptable to Landlord, Standard Commercial General Liability
Insurance. The limits of liability of such insurance shall be an amount not less than One Million Dollars ($1,000,000.00) per occurrence, Personal Injury including death and One Million Dollars ($1,000,000.00) per occurrence, Property Damage
Liability or One Million Dollars 
 

43 

($1,000,000.00) combined single limit for Personal Injury and Property Damage Liability.
Such policies shall include Contractual Liability Coverage and shall name Landlord as additional insured, and shall provide thirty (30) days’ notice of cancellation to Landlord. 
 
20.2. Landlord Liability Insurance. Landlord shall obtain and keep in force during the
Term of this Lease, with an insurer(s) holding a Best Rating of B+ or higher and reasonably acceptable to Tenant, Standard Commercial General Liability Insurance. The limits of liability of such insurance shall be an amount not less than One Million
Dollars ($1,000,000.00) per occurrence, Personal Injury including death and One Million Dollars ($1,000,000.00) per occurrence, Property Damage Liability or One Million Dollars ($1,000,000.00) combined single limit for Personal Injury and Property
Damage Liability. Such policies shall name Tenant as additional insured and shall include Contractual Liability coverage. 
 
20.3. Landlord Property Insurance. Landlord shall obtain and keep in force during the Term of this Lease, “all
risk” property insurance on the Premises, with an insurer(s) holding a Best Rating of B+ or higher and reasonably acceptable to Tenant, insuring 100% of the replacement value thereof. This insurance shall include, but not be limited to, fire
and extended coverage perils. Said insurance shall provide for payment of loss thereunder to Landlord or to the holders of mortgages or deeds of trust on the Premises. Landlord shall, in addition, obtain and keep in force during the Term of this
Lease a policy of rental income insurance covering a period of twelve months, with loss payable to Landlord, which insurance shall also cover all Real Estate Taxes and insurance costs for said period. 
 
20.4. Tenant Personal Property
Insurance. Tenant shall obtain and keep in force during the Term of this Lease, at its expense, on its own furniture, furnishings, fixtures and equipment located in the Building, with companies acceptable to Landlord, policies of fire and
extended coverage insurance with standard coverage vandalism, malicious mischief, and special extended perils (all risk) with an insurer(s) holding a Best Rating of B+ or higher. 
 
20.5. Insurance Endorsement. Each policy mentioned in this Section 20 shall
name the non-insuring Party as an additional insured, shall be primary and non-contributing with any insurance carried by the non-insuring Party, and shall have attached thereto endorsements (a) that such policy shall not be canceled, modified,
reduced or surrendered without at least thirty (30) days’ prior written notice to the non-insuring Party; and (b) that no act or omission of the insuring Party shall invalidate the interest of such person or entity entitled to such notice.
Certificates of insurance evidencing such coverages shall be delivered promptly by the Party obtaining such insurance to the other Party. 
 
20.6. Waiver of Subrogation. Landlord and Tenant waive and release each other of and from any and all rights of
recovery, claim, action or cause of action, against each other, their agents, officers and employees, for any loss or damage that may occur to the Premises or personal property within the Building, by reason of fire or the elements regardless of
cause or origin, including negligence of Landlord or Tenant or their agents, officers and employees provided, however, that this release shall be effective only with respect to loss or damage occurring during such time as the applicable policies of
insurance shall contain a clause 
 

44 

to the effect that this release shall not affect said policies or the right of the insured
to recover thereunder. If any policy does not contain such a clause, the insured Party shall, at the written request of the other Party to this Lease, have such a clause added to said policy if such waiver of subrogation endorsement is obtainable.
Because this section will preclude the assignment of any claim mentioned in it by way of subrogation or otherwise to an insurance company or any other person, the Parties agree immediately to give to each insurance company which has issued to it
policies of insurance covering risks of direct physical loss, written notice of the terms of the mutual waivers contained in this Section 20.6, and to have the insurance policies properly endorsed, if necessary, to prevent the invalidation of
the insurance coverages by reason of the mutual waivers contained in this Section, and to secure from their respective insurers waivers of the insurers’ subrogation rights. Landlord and Tenant mutually waive their respective rights of
recoveries against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of either of them. 
 
20.7. Insuring Party. Tenant shall, as Additional Rent for the Premises, pay the cost of all insurance required to
be carried by Landlord hereunder. Landlord shall use reasonable good faith efforts to obtain the insurance required under Sections 20.2 and 20.3 at competitive rates. If Landlord’s insurance is part of a blanket policy, Tenant shall be
responsible only for that portion of the premium attributable to the Premises. If Tenant determines that the insurance premiums for the required insurance are not competitive, Tenant may, on Landlord’s behalf, seek competitive bids from other
insurers meeting the qualifications set forth in Sections 20.2 and 20.3. If Tenant is able to obtain the required insurance from comparable companies and with comparable coverage at rates five (5%) percent less than the premiums then in
effect, Tenant shall notify Landlord in writing and provide Landlord with reasonable evidence of the same, and Landlord shall obtain its insurance from the more competitive insurer(s) in lieu of its existing insurer(s), within thirty (30) days of
Tenant’s written request therefore. Landlord shall cooperate with Tenant in its efforts to obtain competitive bids on the required insurance, which cooperation shall include providing Tenant with detailed information regarding Landlord’s
existing insurance. Tenant shall not be responsible for any increase in the premiums which are due to the acts or omissions of Landlord, its agents, employees or contractors. 
 

	 	21.	 	Casualty Damage. 

 
21.1. Rebuilding Obligations; Termination. If the Building is damaged by fire, explosion, or other casualty (a
“Casualty”), Landlord shall commence the repair, restoration, or rebuilding thereof within sixty (60) days of such damage, and shall complete such restoration, repair, or rebuilding (the “Reconstruction”) within two
hundred seventy (270) days after the commencement thereof, provided that if Reconstruction is delayed because of changes, deletions, or additions in construction requested by Tenant, or Force Majeur, the period for Reconstruction shall be extended
for the amount of time Landlord is so delayed. If the Casualty or the Reconstruction caused thereby shall materially interfere with the conduct of Tenant’s business on the Premises, in whole or in part, Rent shall equitably abate to the extent
and during the period of such material interference, and Tenant shall have no liability therefor. If such Casualty materially damages 50% or more of the Building, and occurs within the last twenty-four (24) 
 

45 

months of the applicable Term, Landlord or Tenant may terminate this Lease within sixty
(60) days after the Casualty occurs. If such Reconstruction is not completed within two hundred and seventy (270) days after commencement and such non-completion materially interferes with Tenant’s business operations at the Premises, Tenant
shall have the right to terminate this Lease. Such termination shall be effected by written notice to the other Party and upon such termination, the obligation of Tenant to pay Rent and other charges hereunder shall end as of the date when the
Casualty occurred except for accrued and unpaid Additional Rent and pro-rated Rent for the portion of the Premises used and occupied by Tenant after the Casualty. Any Rent prepaid by Tenant but unearned, shall be adjusted as of the date of the
Casualty, and neither Party shall thereafter have any other obligations to the other under this Lease, except such obligations which by their terms expressly survive termination of this Lease, and except for Landlord’s payment to Tenant of the
Construction Period Termination Reimbursement or the Amortized Termination Reimbursement (defined herein), as applicable pursuant to Section 26.2. 
 
21.2. Surrender of Premises. Upon the occurrence of such termination, Tenant shall vacate and surrender the
Premises to Landlord. 
 
21.3.
Partial Damage. If the Premises are partially damaged or rendered partially untenantable by fire or other casualty, this Agreement shall continue in effect except that the damages to the Premises shall be promptly repaired by Landlord at its
expense, and until full use of the Premises is restored to Tenant, Rent shall partially abate in the proportion that the untenantable area of the Building bears to the entire area of the Building. 
 
21.4. Insurance Proceeds. Landlord
shall be solely entitled to the proceeds from any policy of property damage and rent interruption insurance. Business interruption insurance proceeds from policies carried by Tenant shall belong solely to Tenant. In all events, Tenant agrees to
repair and replace its own furniture, furnishings and equipment. 
 

	 	22.	 	Condemnation. 

 
22.1. Taking of Whole. If the whole of the Premises, or any material part of the Building, shall be taken or
condemned for a public or quasi-public use or purpose by a competent Governmental Authority, or if such a portion of the Premises shall be so taken that as a result thereof the balance cannot be used by Tenant for the reasonable conduct of its
business, then in either of such events, this Lease shall terminate upon delivery of possession to the condemning Governmental Authority, and any award, compensation, or damages (hereinafter sometimes called the “award”), shall be
paid to and be the sole property of Landlord, without any participation by Tenant; provided, however, that Landlord shall pay Tenant the unamortized portion of the Tenant’s Construction Cost Share and Construction Period Interest, paid by
Tenant, utilizing the straight line method of depreciation over the initial Term of this Lease less a pro-rata share of Landlord’s attorneys’ fees, costs and expenses incurred in connection with the defense, prosecution, negotiation or
settlement of the condemnation proceedings. Nothing contained herein shall be construed to preclude Tenant, to the extent permitted by Law, from prosecuting any claim directly against the condemning Governmental Authority in such condemnation
proceedings, and receiving an award for loss of business, or depreciation to, 
 

46 

damage to, or cost of removal of, or for the value of stock, trade fixtures, furniture,
and other personal property belonging to Tenant (“Tenant Loss”); provided, however, that no such claim shall diminish or otherwise adversely affect Landlord’s award or the award of any Mortgagee. Tenant shall continue to pay
Rent until this Lease is terminated, subject to adjustment upon the date of such termination, and any Taxes prepaid by Tenant shall be adjusted between the Parties. 
 
22.2. Partial Taking. If only a part of the Premises shall be so taken or condemned,
and, as a result thereof, the balance of the Premises can be used by Tenant for the reasonable conduct of its business in a manner and at a cost substantially equivalent to that experienced prior to the condemnation, this Lease shall not terminate,
and Landlord shall repair and restore the Premises as necessary to render it suitable for Tenant’s use of all Improvements thereon, and there shall be a proportional reduction in the Rent following such taking. Rent shall be equitably abated
following such taking. If Tenant reasonably determines that the portion of the Premises remaining after such condemnation is inadequate to allow the proper operation of Tenant’s business at the Premises, Tenant may terminate this Lease by
written notice to Landlord. Provided, however, that a taking of excess land, landscaped areas, or for road widening, which does not materially and adversely affect the Building or access to the Premises, or parking at the Premises, shall not give
rise to such termination right by Tenant. 
 

	 	23.	 	Estoppel Certificates. 

 
23.1. Tenant, within twenty (20) days of the date of the written request of Landlord or any Mortgagee, agrees to execute
and deliver to Landlord and/or such Mortgagee, a written statement: (a) ratifying this Lease: (b) confirming the commencement and expiration dates of the terms of this Lease: (c) certifying that Tenant is in occupancy of the Premises, and that this
Lease is in full force and effect and has not been modified, assigned, supplemented or amended except by such writings as shall be stated; (d) certifying that all conditions and agreements under this Lease to be satisfied or performed by Landlord
have, to Tenant’s knowledge, been satisfied and performed except as shall be stated; (e) certifying that, to Tenant’s knowledge, Landlord is not in default under this Lease and there are no defenses or offsets against the enforcement of
this Lease by Landlord, or stating the defaults and/or defenses claimed by Tenant; (f) reciting the amount of advance Rent, if any, paid by Tenant and the date to which such Rent has been paid; (g) reciting the amount of security deposited with
Landlord, if any; and (h) any other information which Landlord or the Mortgagee shall reasonably require. The failure of Tenant to execute, acknowledge and deliver to Landlord and/or any Mortgagee a statement in accordance with the provisions herein
within the period set forth herein shall constitute an Event of Default. In no case shall Tenant be required to issue more than one estoppel certificate per calendar quarter for each Mortgagee or other party identified by Landlord. Such estoppel
certificate will be substantially in the form of the attached Exhibit K and any such statement may be relied upon by a prospective purchaser of the Premises or any Mortgagee lenders having an interest in the Premises. 
 

47 

	 	24.	 	Default. 

 
The occurrence of any of the following shall constitute an event of default and breach of this Lease (“Event of
Default”) by Tenant: 
 
24.1. Monetary Default. Tenant fails to pay, when due, any installment of Rent hereunder or any such other sum herein required to be paid by Tenant (other than as specified in Section 24.4.) where such failure continues
for ten (10) days after written notice thereof to Tenant. 
 
24.2. Non-Monetary Default. Tenant fails to observe or perform any of the other covenants, conditions or provisions of this Lease and (other than non-performance with respect to the Construction Letter of Credit)
Tenant fails to cure such default within thirty (30) days after notice thereof to Tenant; provided that if any such default cannot be reasonably cured within such period and Tenant has commenced, and is diligently and continuously pursuing, such
cure, the cure of such period shall be extended for that additional time which is reasonably necessary to correct such default up to an additional thirty (30) days, provided that Landlord suffers no material adverse affect on account of such
extension. 
 
24.3.
Bankruptcy. The making by Tenant of any assignment for the benefit of creditors; an adjudication that Tenant is bankrupt, insolvent, or unable to pay its debts; the filing by or against Tenant of a petition in bankruptcy or of a petition for
reorganization or arrangement under any Law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days after the filing thereof); the appointment of a trustee or receiver to take
possession of substantially all of Tenant’s assets located in the Premises or of Tenant’s interest in this Lease (unless possession is restored to Tenant within thirty (30) days after such appointment); or the attachment, execution or levy
against, or other judicial seizure of, substantially all of Tenant’s assets located in the Premises or of Tenant’s interest in this Lease (unless the same is discharged within thirty (30) days after issuance thereof). 
 
24.4. Construction Costs. Tenant fails
to pay Tenant’s Construction Cost Share, Tenant’s Construction Period Interest, or Change Order Costs within ten (10) days after Landlord’s proper request for payment in accordance with the provisions of this Lease and the
Construction Rider. 
 

	 	25.	 	Landlord Remedies. 

 
Upon the occurrence of any Event of Default: 
 
25.1. Landlord Cure. Landlord may perform for the account of Tenant any such act, the
omission of which constituted a default by Tenant and immediately recover as Additional Rent any reasonable expenditures made, and the amount of any obligations incurred, plus interest at the Default Rate from the date the obligations are incurred
by Landlord until reimbursement is received by Landlord, whether before or after entry of judgment and issuance of execution thereon. 
 

48 

25.2. Acceleration of Rent. Landlord may accelerate all Rent due
for the balance of the Initial Term (or a Renewal Term, if this Lease is terminated during such Renewal Term) and declare the same to be immediately due and payable. Notwithstanding the foregoing, if Tenant tenders to Landlord within forty-five (45)
days following Landlord’s written demand for the accelerated Rent, such accelerated Rent discounted to present value at the rate equal to the greater of : (i) seven and one half percent (71⁄2%) per annum, or (ii) the yield to maturity then
applicable to US Treasury obligations having a maturity date closest in time to the then current expiration date of this Lease, such payment shall satisfy Tenant’s obligation for accelerated Rent. If Tenant makes such payment within such
forty-five (45) day period, thereafter such payment shall constitute liquidated damages and Tenant shall have no further liability to Landlord with respect to Rent and Landlord shall use reasonable efforts to attempt to relet the Premises. If
Landlord is successful in so reletting the Premises, Landlord shall reimburse to Tenant, the amount recovered by Landlord from a replacement tenant occupying the Premises through the period ending upon the originally scheduled expiration date of the
Term of this Lease up to the amount of accelerated Rent paid by Tenant, in excess of all costs and expenses incurred by Landlord in obtaining such replacement Tenant, including commissions, legal fees and costs of redecorating and preparing the
Premises for occupancy by such replacement Tenant. Such reimbursement shall be made as and when Landlord receives the proceeds of such reletting. 
 
25.3. Estimated Future Expenses. In determining the amount of any future payments of Additional Rent due Landlord
relating to Operating Expenses and/or Real Estate Taxes, Landlord may make such determination based upon the most recent estimates of Operating Expenses and/or Real Estate Taxes available. 
 
25.4. Termination of Lease. Landlord, at its option, may serve notice upon Tenant that
this Lease and the then unexpired Term hereof shall cease and expire and become absolutely void on the date specified in such notice without any right on the part of Tenant to save the forfeiture by payment of any sum due, or by the performance of
any term or condition broken; and, thereupon and at the expiration of the time limit in such notice, this Lease and the Term hereof, as well as the right, title and interest of Tenant hereunder, shall wholly cease and expire and become void in the
same manner and with the same force and effect (except as to Tenant’s liability) as if the date fixed in such notice were the date herein stated for expiration of the Term of this Lease. Thereupon, Tenant shall immediately quit and surrender to
Landlord the Premises, and Landlord may, to the extent permitted by applicable Law, enter into and repossess the Premises by summary proceedings, detainer, ejectment or other peaceable means and remove all occupants thereof and, at Landlord’s
option, any property thereon without being liable to indictment, prosecution or damages therefor. No such expiration or termination of this Lease shall relieve Tenant of its liability and obligations under this Lease, whether or not the Premises
shall be relet. 
 
25.5.
Reletting of Premises. Provided Landlord does not accelerate Rent under Section 25.2., Landlord may, at any time after the occurrence of any Event of Default, peaceably re-enter and repossess the Premises and any part thereof and
attempt in its own name, as agent for Tenant if this Lease not be terminated, or on its own behalf if this Lease be terminated, to 
 

49 

relet all or any part of the Premises for and upon such terms and to such
persons and for such period or periods as Landlord, in its sole discretion, shall determine, including a term beyond the termination of this Lease; and Landlord shall not be required to accept any tenant offered by Tenant or observe any instruction
given by Tenant about such reletting. For the purpose of such reletting, Landlord may decorate or make repairs, changes, alterations or additions in or to the Premises to the extent reasonably deemed necessary by Landlord; and the cost of such
decoration, repairs, changes, alterations or additions shall be charged to and be payable by Tenant as Additional Rent hereunder, as well as any reasonable brokerage and attorneys fees incurred by Landlord; and any sums collected by Landlord from
any new tenant obtained shall be credited against the balance of the Rent due hereunder. Tenant shall pay to Landlord monthly, on the days when the Rent would have been payable under this Lease, the amount due hereunder less the amount obtained by
Landlord from such new tenant. 
 
25.6. Other Remedies. Landlord shall have the right to invoke any remedy allowed by law or in equity, whether or not other remedies, indemnities or reimbursements are herein provided. The rights and remedies given to Landlord
in this Lease are distinct, separate and cumulative remedies; and no one of them, whether or not exercised by Landlord, shall be deemed to be in exclusion of any of the others. 
 
25.7. Letter of Credit Drawdown. If the Event of Default is one as described in
Section 24.4, Landlord may draw the Construction Letter of Credit and apply the proceeds thereof on account of unpaid Tenant’s Construction Cost Share and/or Change Order Costs. 
 

	 	26.	 	Landlord’s Default and Tenant’s Remedies. 

 
26.1. Landlord Default. If Landlord shall default in any of its obligations under this Lease and such failure shall
continue beyond expiration of any cure period provided for such default or, in the absence of a stated cure period for such default, for thirty (30) days after written notice from Tenant specifying the circumstances of such default, or if in the
exercise of Landlord’s reasonable diligence, the same cannot be cured within such thirty (30) day period, such period shall be extended for that reasonable period of time which is reasonably necessary to cure such default, up to an additional
thirty (30) days. Tenant may at its option cure the default at Landlord’s expense. Tenant shall be entitled to perform the work, or take such actions in accordance with the applicable terms and conditions of this Lease, if any, as may be
reasonably necessary to cure the situation giving rise to Landlord’s default. Notwithstanding the foregoing notice and time periods, in the event of an emergency and a default materially prejudicial to Tenant, Tenant need give only such notice
as is reasonable under the circumstances. All reasonable costs incurred by Tenant in curing a default under this Lease, including reasonable attorneys’ fees, shall be an obligation of Landlord to Tenant, payable on demand. Landlord shall pay
upon demand all of Tenant’s reasonable costs, charges and expenses, including the reasonable fees of counsel, agents, and others retained by Tenant, incurred in successfully enforcing Landlord’s obligations under this Agreement.
Notwithstanding anything to the contrary contained herein, under no circumstances may Tenant offset amounts owed by Landlord against future installments of Rent prior to Tenant’s obtaining a judgment against Landlord. The 
 

50 

remedies stated in this Agreement for Landlord’s defaults and all other remedies
provided for in this Agreement in the event of Landlord’s failure to perform a material obligation under this Agreement are cumulative and not exclusive, and in every case Tenant shall have available to it all remedies provided at law and in
equity, except that Tenant shall have no right of self-help except as expressly provided and subject to the conditions and limitations as provided in this Lease, nor any right to set off claims against Landlord against Rent and other Tenant Payment
Obligations, such rights being expressly waived by Tenant. 
 
26.2. Tenant Termination. Upon (a) Tenant’s proper exercise under this Lease of its right to terminate this Lease pursuant to Sections 3.4.C., 3.9.C., 4.3, 21.1, 22 and 42, Landlord
shall, if applicable, return the Construction Letter of Credit required under Section 3.11(c). to Tenant and (a) prior to Substantial Completion of each Phase, pay Tenant the Construction Period Termination Reimbursement, and (b) after
Substantial Completion of each both Phases, pay Tenant an amount equal to Tenant’s unamortized cost of any Tenant Alterations or Tenant Fixturing Work previously paid by Tenant (the “Amortized Termination Reimbursement”).
Tenant’s unamortized cost shall be determined utilizing the straight line method of depreciation and, with respect to Tenant Fixturing Work, the life expectancy of such improvement used by Tenant for federal income tax purposes, and with
respect to Tenant Alterations, the initial Term of this Lease. Thereafter Tenant and Landlord shall have no further obligations, other than with respect to those obligations which by their terms expressly survive the termination of this Lease.

 

	 	27.	 	Confession Of Judgment. 

 
NOTICE: IN THE FOLLOWING PARAGRAPHS TENANT GRANTS LANDLORD A CONFESSION OF JUDGMENT. 
 
TENANT COVENANTS AND AGREES THAT IF THIS LEASE
SHALL BE TERMINATED BY COVENANT OR CONDITION BROKEN, EITHER DURING THE ORIGINAL TERM OR ANY RENEWALS OR EXTENSIONS THEREOF, AND ALSO WHEN AND AFTER THE TERM HEREBY CREATED OR, ANY RENEWAL OR EXTENSION THEREOF SHALL HAVE EXPIRED, IN THAT EVENT,
LANDLORD OR ITS ASSIGNEE MAY CAUSE A JUDGMENT IN EJECTMENT TO BE ENTERED AGAINST TENANT FOR POSSESSION OF THE PREMISES, AND FOR THAT PURPOSE TENANT HEREBY AUTHORIZES AND EMPOWERS ANY PROTHONOTARY, CLERK OF COURT OR ATTORNEY OF RECORD TO APPEAR FOR
TENANT AND CONFESS JUDGMENT AGAINST TENANT, AND ALL PERSONS CLAIMING UNDER TENANT, IN EJECTMENT FOR POSSESSION OF THE PREMISES, AND AGREES THAT LANDLORD OR ITS ASSIGNEE MAY COMMENCE AN ACTION PURSUANT TO PENNSYLVANIA RULES OF PROCEDURE FOR THE ENTRY
OF AN ORDER IN EJECTMENT FOR POSSESSION OF REAL PROPERTY, AND TENANT FURTHER AGREES THAT A WRIT OF POSSESSION PURSUANT THERETO MAY ISSUE FORTHWITH FOR WHICH AUTHORIZATION TO CONFESS JUDGMENT AND FOR THE ISSUANCE OF A WRIT OR WRITS OF POSSESSION
PURSUANT THERETO, THIS LEASE, OR A TRUE AND 
 

51 

CORRECT COPY THEREOF, SHALL BE SUFFICIENT WARRANT. IF FOR ANY REASON AFTER SUCH ACTION
SHALL HAVE BEEN COMMENCED, IT SHALL BE CANCELED OR SUSPENDED AND POSSESSION OF THE PREMISES REMAINS IN OR IS RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT UPON ANY SUBSEQUENT DEFAULT OR TERMINATION OF THIS LEASE, OR ANY RENEWAL OR EXTENSION
HEREOF, TO BRING ONE OR MORE SUCCESSIVE ACTIONS IN EJECTMENT AS HEREINBEFORE SET FORTH TO RECOVER POSSESSION OF THE PREMISES. 
 
IF IN ANY ACTION IN EJECTMENT, LANDLORD SHALL CAUSE TO BE FILED IN SUCH ACTION AN AFFIDAVIT SETTING FORTH THE FACTS
NECESSARY TO AUTHORIZE THE ENTRY OF JUDGMENT AND IF A TRUE COPY OF THIS LEASE (AND THE TRUTH OF THE COPY STATED IN SUCH AFFIDAVIT SHALL BE SUFFICIENT PROOF) BE FILED IN SUCH ACTION, IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF
ATTORNEY, ANY LAW, RULE OF COURT, CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING. TENANT EXPRESSLY RELEASES TO LANDLORD, AND TO ANY AND ALL ATTORNEYS WHO MAY APPEAR FOR TENANT, ALL ERRORS IN THE SAID PROCEEDINGS, AND ALL LIABILITY THEREFOR.
TENANT EXPRESSLY WAIVES THE BENEFIT OF ALL LAWS, NOW OR HEREAFTER IN FORCE, EXEMPTING ANY GOODS WITHIN THE PREMISES OR ELSEWHERE FROM DISTRAINT, LEVY OR SALE. 
 

	 Adolor Corporation

	
	 By:
	 	 
	 	 	

 

	 	28.	 	Waiver. 

 
The failure or delay on the part of Landlord or Tenant to enforce or exercise at any time any of the terms and conditions
of this Lease shall in no way be construed to be a waiver thereof, nor in any way to affect the validity of this Lease or any part hereof, or the right of Landlord to thereafter enforce each and every such term or condition. No waiver by Landlord or
Tenant of any breach of this Lease by the other shall be held to be a waiver of any other or subsequent breach. The receipt by Landlord of Rent at a time when the Rent is in default under this Lease shall not be construed as a waiver of such
default. The receipt by Landlord of a lesser amount than the Rent due shall not be construed to be other than a payment on account of the Rent then due, nor shall any statement on Tenant’s check or any letter accompanying Tenant’s check be
deemed an accord and satisfaction, and Landlord may accept such payment without prejudice to Landlord’s right to recover the balance of the Rent due or to pursue any other remedies provided in this Lease. Except as expressly provided herein, no
act or thing done by 
 

52 

this Lease shall be deemed an acceptance or a surrender of the Premises, and no agreement
to accept such a surrender shall be valid unless in writing and signed by Landlord. 
 

	 	29.	 	Quiet Enjoyment. 

 
If and so long as Tenant pays the Rent reserved hereunder and observes and performs all the terms and conditions on
Tenant’s part to be observed and performed hereunder, Tenant shall and may peaceably and quietly have, hold and enjoy the Premises without disturbance, hindrance, ejection or interruption by Landlord or any person claiming through Landlord, or
otherwise, for the entire Term hereof, subject to all of the provisions of this Lease. 
 

	 	30.	 	Force Majeure. 

 
Time periods for the performance of Landlord’s and Tenant’s obligations (including without limitation
Landlord’s construction obligations, but excluding monetary obligations) under any of the terms of this Lease, shall be extended for periods of time during which such performance is prevented due to circumstances beyond the non-performing
Party’s control, including without limitation unusual and unanticipated adverse weather conditions of a degree which cause delay, strikes and labor unrest (other than matters solely affecting the Premises), embargoes and governmental
regulations, acts of God, war or other civil unrest, or delays in construction of the Building or Premises due to unavailability of material or unavailability of labor resulting from strikes or labor unrest (“Force Majeure”).

 

	 	31.	 	Successors. 

 
The respective rights and obligations provided in this Lease shall bind and shall inure to the Parties hereto, and their
successors and permitted assigns. 
 

	 	32.	 	Landlord’s Liability. 

 
Except for Landlord’s obligation to remove monetary liens from the Premises pursuant to Section 42,
Landlord’s responsibility under this Lease shall be limited to its interest in the Premises and no members of Landlord’s partnership shall be personally liable hereunder except to the extent provided under the Limited Guaranty attached as
Exhibit P. Tenant agrees to look solely to Landlord’s interest in the Premises for the collection of any judgment, and, in entering any such judgment, the person entering the same shall request the prothonotary to mark the judgment index
accordingly. If the Premises is transferred or conveyed, Landlord shall be relieved of all covenants and obligations under this Lease thereafter, provided that notice of said transfer or conveyance is given to Tenant by Landlord and provided such
transferee assumes and agrees to all of Landlord’s obligations under this Agreement arising after the date of transfer and no such transfer shall release the Hankin Group from liability under the Limited Guaranty. 
 

	 	33.	 	Subordination and Non-Disturbance. 

 

53 

33.1. Subordination. Tenant agrees: (a) that, except as hereinafter
provided, this Lease is, and all of Tenant’s rights hereunder are and shall always be, subject and subordinate to any mortgage, leases of Landlord’s property (in sale-leaseback) pursuant to which Landlord has or shall retain the right of
possession of the Premises (and/or the Building) or security instruments (collectively called “Mortgage”) that now exist, or may hereafter be placed upon the Premises or the Building, or any part thereof and all advances made or to
be made thereunder and extensions thereof (provided however, that this Lease shall be subordinate to a junior Mortgage or lien only upon the express written consent or agreement by the holder of the first lien Mortgage); and (b) that, subject to the
provisions of Section 33.2, if the holder of any Mortgage (“Mortgagee”) or if the purchaser at any foreclosure sale or at any sale under a power of sale contained in any Mortgage shall at its sole option so request, Tenant
will attorn to, and recognize such Mortgagee or purchaser, as the case may be, as Landlord under this Lease for the balance then remaining of the Term of this Lease, subject to all terms of this Lease; and (c) that the aforesaid provisions shall be
self-operative and no further instrument or document shall be necessary unless required by any such Mortgagee or purchaser. Notwithstanding anything to the contrary set forth above, any Mortgagee may at any time subordinate its Mortgage to this
Lease, without Tenant’s consent, by execution of a written document, subordinating such Mortgage to this Lease to the extent set forth therein, and thereupon this Lease shall be deemed prior to such Mortgage to the extent set forth in such
written document, without regard to their respective dates of execution, delivery and/or recording and in that event, to the extent set forth in such written document, such Mortgagee shall have the same rights with respect to this Lease as though
this Lease had been executed and a memorandum thereof recorded prior to the execution, delivery and recording of the Mortgage as though this Lease had been assigned to such Mortgagee. Should Landlord or any Mortgagee or purchaser desire confirmation
of either such subordination or such attornment, as the case may be, Tenant upon written request, and from time to time, will execute and deliver without charge and in form satisfactory to Landlord, to the Mortgagee or the purchaser all instruments
and/or documents that may be required to acknowledge such subordination and/or agreement to attorn, in recordable form within five (5) days following a request therefor from Landlord. If Tenant fails to execute and deliver the instruments and
documents as provided for herein within the time period set forth, Tenant does hereby make, constitute and appoint Landlord or such Mortgagee or purchaser, as the case may be, as Tenant’s attorney-in-fact and in its name, place and stead to do
so, or Landlord may treat such failure as an event of default, subject to applicable notice and cure periods otherwise provided in this Lease. The aforesaid power of attorney is given as security coupled with an interest and is irrevocable. Tenant
shall agree to any reasonable changes to this Lease as may be required by a Mortgagee, which changes do not materially alter the non-economic terms, or alter in any way the economic terms, of this Lease. 
 
33.2. Non-Disturbance. At Tenant’s
request, Landlord shall obtain non-disturbance agreements (“Non-Disturbance Agreements”) from any Mortgagee to which this Lease is subordinate, under which such Mortgagee agrees (a) not to disturb Tenant’s occupancy of the
Premises as long as no Event of Default by Tenant under this Lease exists, irrespective of whether Landlord is in default under the Mortgage, (b) to release the Mortgage upon Tenant’s 
 

54 

request upon payment to Mortgagee of the Purchase Price payable pursuant to Section
42 upon Tenant’s exercise of its Option to Purchase. 
 
None of the subordination or attornment provisions of this Section 33 shall be effective with respect to, or benefit, any Mortgagee prior to such Mortgagee’s execution of such Non-Disturbance Agreement. 
 
33.3. Direct Access Agreement. Landlord
agrees, and Landlord shall obtain the agreement of any Mortgagee, to waive all rights in any personal property owned or leased by Tenant and located at the Premises which is subject to Tenant’s removal at the termination of this Lease pursuant
to Section 12.4, including, without limitation, any equipment and tenant fixtures owned by Tenant or leased by Tenant under personal property leases with third parties and located at the Premises, including without limitation, fume hoods,
casework, refrigerators, freezers, biosafety cabinets, benchtop equipment, HPLC mass spectrometers, NMR and other laboratory equipment, telephone systems, computer systems, security systems and similar items of personal property (the
“Personal Property”). 
 

	 	34.	 	Rules and Regulations. 

 
Tenant agrees to comply with the rules and regulations established by Landlord from time to time, which Landlord agrees
will be applied uniformly to all tenants in the Center. The existing rules and regulations are attached hereto as Exhibit L. Landlord covenants that none of such Rules and Regulations shall conflict with or diminish the rights of Tenant under
this Lease. The Parties agree that to the extent there is any conflict between the provisions of this Lease and the provisions of the Rules and Regulations, the provisions of this Lease shall control. 
 

	 	35.	 	Governing Law. 

 
This Lease shall be governed by and construed in accordance with the Laws of the Commonwealth of Pennsylvania.

 

	 	36.	 	Severability. 

 
If any provisions of this Lease shall prove to be invalid, void or illegal, it shall in no way affect any other provision
hereof and the remaining provision shall nevertheless remain in full force and effect. 
 

	 	37.	 	Holding Over. 

 
If Tenant shall, with the consent of Landlord, hold over after the expiration of the Term hereof, such tenancy shall be
deemed a month-to-month tenancy, which tenancy may be terminated as provided by applicable state Law. During such tenancy, Tenant agrees to pay to Landlord the fair market value for the Premises, as reasonably determined by Landlord, and to be bound
by all the terms and conditions herein. If Landlord shall not give consent to such hold over such tenancy may be terminated as above provided, and until Tenant has vacated the 
 

55 

Premises, it agrees to pay to Landlord Rent at a monthly rental based upon the rent
payable by Tenant at the expiration of the Term of this Lease (the “Term Expiration Rate”) equal to one hundred twenty-five (125%) percent of the Term Expiration Rate for the first month of such holdover, one hundred fifty (150%)
percent of the Term Expiration Rate for the second month of such holdover, and two hundred (200%) percent of the Term Expiration Rate thereafter. 
 

	 	38.	 	Notices. 

 
All notices, approvals and statements required or permitted under this Lease shall be in writing, delivered in person or
sent by United States or Registered or Certified Mail, postage prepaid, by Federal Express or other recognized overnight courier service, or by hand delivery, addressed as follows: 
 
As to Tenant: 
Adolor Corporation 
620 Pennsylvania Drive 
Exton, PA 19341 
Attn: President and Chief Executive Office 
Attn: General Counsel 
 
With a copy to: 
Dechert 
1717 Arch Street 
4000 Bell Atlantic Tower 
Philadelphia, PA 19103-2793 
James A. Lebovitz, Esquire

 
As to Landlord: 
700 Pennsylvania Drive Associates 
c/o The Hankin Group 
707 Eagleview Boulevard 
P.O. Box 562 
Exton, PA 19341 
 
Either Party may at any time, in the manner set forth for giving notices to the other, designate a different address to
which notices to it shall be sent. 
 

	 	39.	 	Brokers. 

 
The Parties each represent and warrant to each other that they have not utilized any broker, firm, company or person in
connection with the negotiation for or the obtaining of this Lease. The Parties shall indemnify, defend and hold each other harmless from and against 
 

56 

any claim by any broker, firm, company or person claiming a commission or other form of
compensation by virtue of actions of the indemnifying Party with regard to this Lease, and any attorneys fees or other expenses incurred in connection therewith. 
 

	 	40.	 	Signs. 

 
Except for a sign indicating the name of Tenant (which shall be in compliance with applicable zoning and the Declaration)
and, in Landlord’s sole discretion consistent with the aesthetic plan for the Center, Tenant shall not, without the prior written consent of Landlord, paint, place or erect any sign on the exterior doors or walls of the Premises or Center or on
the Land. Tenant shall be solely responsible for maintaining its signs in good condition and shall remove them and repair any damage caused by such removal on or before the Expiration Date (or the expiration date of the Renewal Term, as applicable).
Landlord agrees that Tenant may remove its existing sign located at its current leased facilities at 620 Pennsylvania Drive and relocate that sign to the Premises, and Landlord hereby approves of such sign. 
 

	 	41.	 	Security Deposit. 

 
41.1. Deposit. Upon the execution of this Lease, Tenant agrees to deposit with Landlord, the sum of One hundred
Thousand Dollars ($100,000.00) to be held by Landlord as security for the faithful performance of all the terms and conditions of this Lease (“Security Deposit”). Should Tenant breach any of the terms and conditions of this Lease,
Landlord shall have the right, at any time and from time to time, to apply the Security Deposit or any part thereof, for the purpose of curing any such default or for the purpose of reimbursing Landlord for any damage or costs occasioned by such
default, but the right of Landlord to apply the Security Deposit shall not affect any other remedies available to Landlord under this Lease or under applicable law. If the Security Deposit, or any part thereof, is so applied by Landlord, Tenant
shall, within ten (10) days after demand, deposit additional funds with Landlord to restore the Security Deposit, and failure to do so shall constitute an Event of Default under this Lease. 
 
41.2. Return of Deposit. If Tenant
shall have faithfully complied with all the terms and conditions of this Lease, the Security Deposit (without interest) shall be refunded to Tenant within thirty (30) days after the expiration or sooner termination of this Lease; provided, however,
that Tenant first shall have vacated the Premises and surrendered possession thereof to Landlord by delivery of keys, in accordance with the Lease provisions and shall have returned the Premises to Landlord in good order and repair, reasonable wear
and tear and casualty and condemnation excluded. 
 
41.3. Administration of Deposit. 
 
A. Nothing herein contained shall require Landlord to hold the sums so deposited as a trust fund, nor establish any relationship other than that of debtor and creditor with respect to said funds so deposited. 
 

57 

B. If Landlord shall assign or otherwise transfer its interest in this
Lease, Landlord shall have the right to transfer the Security Deposit to the assignee or other transferee of such interest (with like right of transfer to any subsequent assignee or other transferee) and upon such transfer, Landlord shall be
released and relieved from all liability and/or responsibility with respect to this Security Deposit and/or the return or application thereof. 
 

	 	42.	 	Option To Purchase. 

 
Landlord hereby grants to Tenant an option to purchase the Premises (the “Option to Purchase”), which,
provided there then exists no Event of Default under this Lease, may be exercised by Tenant providing to Landlord written notice not more than one hundred and twenty (120) days nor less than ninety (90) days prior to the fifth and tenth annual
anniversaries of the Commencement Date, accompanied by a deposit to be applied to the Purchase Price (defined herein) at closing of $500,000.00 (the “Deposit”), with closing on transfer of title to the Premises to occur on such date
within sixty (60) days of the applicable anniversary as Landlord determines. The date of delivery of Tenant’s notice exercising the Option to Purchase is referred to herein as the “Exercise Date”. 
 
The purchase price for the Premises
(“Purchase Price”) shall be the sum of: (a) $7,750,000.00, plus (b) the amount of the Tenant Allowance, plus (c) an amount equal to the percentage increase in the sum of the amounts described in clauses (a) and (b) above based on
the CPI Adjustment (defined herein) between the Commencement Date and the Exercise Date. The “CPI Adjustment” shall mean the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the Philadelphia,
Pennsylvania SMSA as published by the United States Department of Labor Bureau of Labor Statistics (1982-1984=100) on the applicable measuring date over the comparable CPI-U in effect on the Commencement Date. The Purchase Price shall be paid at the
Closing by wire transfer of immediately available funds, and shall be subject to adjustment for prepaid rents, real estate taxes and similar items in accordance with the normal practice for sales of commercial office buildings in the community. Real
estate transfer taxes shall be divided equally between Landlord and Tenant at the closing. Landlord shall satisfy all monetary liens at the closing and take all commercially reasonable steps to remove title matters created by Landlord which are not
Permitted Exception (defined herein). 
 
Within thirty (30) days after the Original Lease Execution Date, Tenant will obtain a title commitment (the “Title Commitment”) issued by Fidelity National Title Insurance Company with respect to the Premises. Tenant
acknowledges and agrees that title shall be subject to the Declaration, utility easements and matters of record which do not unreasonably interfere with Tenant’s ability to use and occupy the Premises for the Permitted Use, and a special
covenant granting Eagleview the right to construct any additional buildings on the Premises, in the form of Exhibit M attached hereto. If such Title Commitment indicates that Landlord does not own title consistent with Landlord’s
representations in Section 14.1.O., Tenant may, by providing Landlord notice within forty-five (45) days after the Original Lease 
 

58 

Execution Date, terminate this Lease without further liability. If Tenant approves the
Title Commitment it shall be attached hereto as Exhibit N. 
 
It is a condition to Tenant’s obligation to complete closing that title to the Premises at the closing shall be in the same condition specified in the preceding paragraph. Title at closing on the
purchase of the Premises shall be subject only to Permitted Exceptions and the matters shown on Schedule B-2 of the Title Commitment (excepting standard printed exceptions which the title company will remove based upon a Seller’s affidavit
customarily used in similar transactions), amendments to the Declaration and the special covenants appearing in Exhibit M. 
 
Tenant acknowledges that if it exercises the Option to Purchase, it agrees to purchase the Premises in its then current
condition, as-is, and without any representation or warranty whatsoever as to the physical condition of the Premises. 
 
If Tenant having exercised the Option to Purchase, fails to complete closing without justification, the Option to Purchase
granted in this Lease shall terminate, and Landlord shall have the right to retain the Deposit as liquidated damages as Landlord’s exclusive remedy for such breach. 
 

	 	43.	 	Intentionally Omitted. 

 

	 	44.	 	Satellite Dish. 

 
Tenant shall have the right to use a portion of the roof area of the Building or, such other location on the ground of the
Premises, as Tenant may reasonably select and as shall be permitted by Legal Requirements and approved by Landlord in writing, for the installation, operation, maintenance, security, repair and replacement of one satellite dish serving the Premises
and related cable connections (the “Telecommunications Equipment”). Tenant’s use of the Premises in respect to the Telecommunications Equipment shall be subject to such reasonable rules as Landlord may from time to time
designate and to the following additional conditions: (a) Tenant shall be solely responsible for the installation, maintenance, repair, operation and replacement of the Telecommunications Equipment, (b) Tenant shall install screening around the
Telecommunications Equipment to the extent required by the Legal Requirements, Declaration, or Permitted Exceptions, and (c) Tenant shall use the Telecommunications Equipment solely in connection as an accessory to the Permitted Use, and shall not
license or permit any third party to utilize the Telecommunications Equipment. Within 30 days of the expiration or termination of the Term, Tenant shall remove the Telecommunications Equipment and repair any damage to the Premises caused by such
removal. The cost of repairing any damage to the Premises arising from such removal and restoration shall be paid by Tenant on demand. 
 

	 	45.	 	Rent Credit. 

 

59 

 
Landlord will provide Tenant with a credit of all Base Rent due with respect to the Existing Renovated Office Space from the Original Lease Execution Date through January 31, 2003. 
 

	 	46.	 	Use of Information In Advertising. 

 
Landlord and any agent employed by Landlord shall be permitted to utilize the name of Tenant and any occupancy or user of
the Premises, and other general information about Tenant and such occupant or user, and the terms of this Lease, in advertising and promotional material utilized by them. 
 

	 	47.	 	Captions. 

 
The title to sections of this Lease are for convenience of reference only, and are not to be construed as defining,
limiting or modifying the scope or intent of any of the terms and conditions of this Lease. 
 

	 	48.	 	Entire Agreement. 

 
This Lease contains all covenants and agreements between Landlord and Tenant relating in any manner to the rental, use and
occupancy of the Premises and Tenant’s use of the Building and other matters set forth in this Lease. No prior agreement or understanding pertaining to the same shall be valid or of any force or effect and the terms, covenants and conditions of
this Lease shall not be altered, modified or added to except in writing signed by Landlord and Tenant. 
 

	 	49.	 	Counterparts. 

 
This Agreement may be executed in any number of counterparts and each fully executed counterpart shall be deemed an
original. 
 

	 	50.	 	Memorandum of Lease. 

 
On the Commencement Date, Landlord and Tenant shall execute a short form or memorandum of this Agreement and record a copy
of same in the appropriate land records offices in the county and state where the Land is located. The cost of recording shall be paid by Tenant. On the Commencement Date, Tenant shall execute and deliver an acknowledged Lease Termination in form
adequate for recording to be delivered to Landlord and held in escrow until expiration or termination of this Lease, at which time the Lease Termination may be recorded by Landlord. 
 

	 	51.	 	Time of Essence. 

 
Time is of the utmost importance to both Landlord and Tenant, and they have agreed that, time being of the essence, except
as otherwise provided in this Lease with respect to 
 

60 

Excused Delays, strict compliance is required for every date set out in this Lease. If the
final date of any period which is set out in this Lease falls on a Saturday, Sunday or legal holiday under the laws of the United States, or the State or Commonwealth in which the Building is located, then, and in such event, the time of such period
shall be extended to, but only to, the next day which is not a Saturday, Sunday or legal holiday. 
 

	 	52.	 	Limited Guaranty of The Hankin Group. 

 
The Hankin Group shall guaranty (a) Landlord’s completion of the Landlord’s Work pursuant to this Lease and the
Construction Rider, (b) Landlord’s covenant to make corrections during the Warranty Period, and during the Lease Term with respect to Structural Components, (c) Landlord’s obligations to reimburse Tenant’s costs and otherwise
indemnify Tenant under Section 53 with respect to the zoning prohibition against animal research, (d) Landlord’s obligation to remove monetary liens and perform its obligations relating to title as set forth in the second paragraph of
Section 42 of the Lease should Tenant exercise the Option to Purchase, and (e) any loss suffered by Tenant as a result of Landlord’s or Guarantor’s wrongful presentation of a sight draft requesting a drawdown of the Construction
Letter of Credit (collectively, the “Hankin Guaranty Items”). For purposes of clause (e), the term (i) “loss” means (A) the amount drawn down pursuant to the sight draft in excess of the amount properly due to Landlord
consistent with the applicable provisions of this Lease and the actual status of construction of the Project, and (B) any amounts payable by Tenant to the bank issuing the Construction Letter of Credit, on account of such wrongful presentation of
the sight draft, including any additional interest, default interest, transaction fees, penalties, legal fees, or other similar costs or expenses incurred thereby, and (ii) “wrongful presentation” means the presentation of a sight draft
containing a misstatement or omission of fact relating either to (A) the terms of the Lease entitling Landlord to make such draw down, or (B) with respect to the status of construction, which misstatement or omission provides the basis for the
issuing bank to honor the sight draft. The Limited Guaranty in the form of Exhibit P attached hereto shall be executed by an authorized principal of The Hankin Group. 
 
53. Zoning Amendment. Landlord has represented to Tenant, and Tenant has confirmed, that an amendment to the
Upper Uwchlan Township zoning ordinance 89-6 (the “Zoning Amendment”), allowing animal research except for cosmetic purposes, has been approved by the Chester County Planning Commission, at a public meeting of the Board of
Supervisors, held on December 2, 2002. The Parties agree that the following procedures, rights and remedies shall apply with respect to the Zoning Amendment. 
 
53.1. Upon Tenant’s Approval of the Final Plans and the delivery of the Landlord’s Budget Certificate to Tenant,
Landlord agrees to immediately apply for, and use its best efforts to obtain as quickly as possible (taking into consideration the previous submittals made to the Upper Uwchlan Township pursuant to Section 3.5.F.), the issuance of a building
permit from the Upper Uwchlan Township for the TI Work. Such application shall specify the vivarium use of the Premises in Tenant’s planned vivarium to be located in the 4,500 square foot portion of the Lab Space (the “Vivarium
Space”) shown on Exhibit A-2 as the “Vivarium 
 

61 

Space,” in sufficient detail to trigger under applicable Laws, upon issuance of the
requested building permit, the thirty (30) day appeal period (“Appeal Period”) for any challenge to the Zoning Amendment (“Zoning Amendment Appeal”) related to such building permit. During such Appeal Period
Landlord shall continue to perform in accordance with its obligations under this Lease, but Tenant shall be excused from posting the Letter of Credit in accordance with the procedure specified in Section 3.11.C., or otherwise funding
Tenant’s Construction Cost Share. 
 
53.2. If no Zoning Amendment Appeal is filed within the Appeal Period, then upon the expiration of the Appeal Period Landlord shall submit a Contractors Application with respect to any expenditures made during the Appeal Period
pursuant to the provisions of Section 3.11.A., and upon Landlord’s request Tenant shall obtain the Letter of Credit in an amount sufficient to secure such expenditures pursuant to the procedures specified in Section 3.11.C.

 
53.3. If a Zoning Amendment
Appeal is filed within the Appeal Period: 
 
A. Landlord shall use all commercially reasonable best efforts to diligently pursue obtaining a dismissal with prejudice in a court of competent jurisdiction, and shall appeal any favorable decision that any appellant obtains with
respect to the Zoning Amendment, or defend any appeal of a decision in favor of Landlord with respect to the Zoning Amendment Appeal (such subsequent appeal of the Zoning Amendment Appeal a “Subsequent Appeal”). Landlord shall
during the pendency of such the Subsequent Appeal (and during any period that any party to such Subsequent Appeal is properly appealing any decision regarding the Subsequent Appeal) continue to perform in accordance with its obligations under this
Lease, but Tenant shall continue during such period to be excused from posting the Letter of Credit in accordance with the procedure specified in Section 3.11.C., or otherwise funding Tenant’s Construction Cost Share. Tenant shall,
however, be obligated to commence and continue the payment of Rent when due under this Lease during the pendency of such Subsequent Appeal, provided that the certificate of occupancy issued by the Upper Uwchlan Township specifically allows for the
operation of the vivarium during such pendency. 
 
B. Landlord, in order to meet its obligations under Section 53.4. below, shall immediately commence commercially reasonable efforts to secure, by option or otherwise, the ability to immediately obtain for the benefit of
Tenant, at least 4,500 square feet of alternative vivarium space (“Alternative Vivarium Space”) located in a building within the Center (but not in Upper Uwchlan Township) and within a three (3) mile radius of the Premises, that is
zoned to allow vivarium use. The Alternative Vivarium Space shall be equivalent in design and finish to the Vivarium Space specified in the Approved Final Plans. Upon identifying such Alternative Vivarium Space, Landlord shall notify Tenant, and
Tenant shall have ten (10) days to either approve or reject such Alternative Vivarium Space and the means by which Landlord has arranged to obtain it (such approval not to be unreasonably withheld or conditioned). 
 
53.4. Upon the entry of a final, unappealable
judgement in favor of an appellant (“Appellant Judgement”) holding that the Zoning Amendment is ineffective (or which 
 

62 

otherwise prohibits Tenant’s vivarium operations in the Vivarium Space), the
following procedure shall apply: 
 
A. Landlord shall be required to relocate Tenant’s entire business operations conducted at the Premises to comparable alternative space (“Replacement Facility”) located in the Center (but not in Upper Uwchlan
Township), built out to specifications comparable in size and finish to the Existing Renovated Office Space and Put-Back Space in the Building and in accordance with Approved Final Plans with respect to the New Office Space and the Lab Space
(including the Vivarium Space). If no existing building is then available meeting such requirements, Landlord shall construct and fit out a new building for Tenant’s occupancy, all at Landlord’s sole cost and expense, including any
architectural fees incurred in connection with such construction and fit-out. Landlord shall use its best efforts to effect such relocation as soon as possible, but in no event for a period of more than twelve (12) months after the entry of the
Appellant Judgement. Landlord shall pay Tenant $500.00 per day for every day the relocation is delayed beyond such twelve (12) month period, provided such delay is not the result of Tenant Delay. Landlord shall reimburse Tenant for all reasonable
and verifiable costs incurred by Tenant to relocate from the Building to the Replacement Facility. Upon Tenant’s occupancy of the Replacement Facility, this Lease will be amended solely to change the description of the Premises, but this Lease
shall continue in full force and effect in all other respects. 
 
B. During any interim period between the entry of the Appellant Judgement and the relocation to the Replacement Facility, Tenant shall continue to occupy the Premises (other than the vivarium) and
Landlord shall immediately provide Tenant with the Alternative Vivarium Space secured by Landlord pursuant to Section 53.4.B. above. Such Alternative Vivarium Space shall be made subject to all the provisions of this Lease on the same terms
as provided in Section 53.1.B(iii). Landlord shall reimburse Tenant for all reasonable and verifiable costs incurred by Tenant to relocate from the Building to the Alternative Vivarium Space. If the Alternative Vivarium Space is not made
available to Tenant for occupancy for any reason within thirty (30) days after the Appellant Judgement, Landlord shall pay Tenant $150.00 per day for every day such occupancy is delayed beyond such thirty (30) day period, provided such delay is not
the result of Tenant Delay. 
 
53.5. Upon the entry of a final unappealable judgement in favor of Landlord’s obligations under Section 53.4 shall terminate. 
 
53.6. Any delay in achieving the occupancy or construction completion obligations of Landlord under this Lease caused by
the zoning prohibition against animal research shall be deemed to be exclusively caused by Landlord. However, Landlord’s liability to Tenant (exclusive of the amounts due Tenant under Section 53.4. shall be limited to $150,000.00.

 
(the remainder of this page is intentionally left
blank) 
(signature pages follow) 
 

63 

 
IN WITNESS
WHEREOF, the Parties have caused this Lease to be duly executed the day and year first above written, intending to be legally bound hereby. 
 

	 LANDLORD

	 700 PENNSYLVANIA DRIVE ASSOCIATES,

	 a joint venture organized and existing
 under the laws of Pennsylvania

	
	 By:   HANKIN PROPERTIES PARTNERSHIP,
 a Pennsylvania limited partnership

	
	 	 	 By:   Hankin Properties, Inc.,
 its General Partner

	
	 	 	 By:
	 	 /s/     Robert S. Hankin

	 	 	 	 	 Robert S. Hankin, President

	
	 By:   THE HANKIN GROUP, a Pennsylvania
 limited partnership

	
	 	 	 By:   The Hankin Group, Inc.

	
	 	 	 By:
	 	 /s/     Robert S. Hankin

	 	 	 	 	 Robert S. Hankin, President

	
	 TENANT
 ADOLOR CORPORATION

	 a corporation organized and existing

	 under the laws of

	
	 Peter J. Schied

	 BY: S.V.P.

 
 

64

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]