Document:

Prepared by R.R. Donnelley Financial -- Lease Agreement Dated June 7, 2002

  
 Exhibit 10.41 
  
 LEASE 
  

  
 TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	  	  	 Basic Lease Information
 	  	 1
 
	  	  	 Table of Contents
 	  	 2
 
	 1.
 	  	 Premises
 	  	 1
 
	 2.
 	  	 Possession and Lease Commencement
 	  	 1
 
	 3.
 	  	 Term
 	  	 1
 
	 4.
 	  	 Use
 	  	 1
 
	 5.
 	  	 Rules and Regulations
 	  	 1
 
	 6.
 	  	 Rent
 	  	 1
 
	 7.
 	  	 Operating Expenses
 	  	 2
 
	 8.
 	  	 Insurance and Indemnification
 	  	 4
 
	 9.
 	  	 Waiver of Subrogation
 	  	 5
 
	 10.
 	  	 Landlord’s Repairs and Maintenance
 	  	 5
 
	 11.
 	  	 Tenant’s Repairs and Maintenance
 	  	 5
 
	 12.
 	  	 Alterations
 	  	 5
 
	 13.
 	  	 Signs
 	  	 6
 
	 14.
 	  	 Inspection/Posting Notices
 	  	 6
 
	 15.
 	  	 Services and Utilities
 	  	 6
 
	 16.
 	  	 Subordination
 	  	 7
 
	 17.
 	  	 Financial Statements
 	  	 7
 
	 18.
 	  	 Estoppel Certificate
 	  	 7
 
	 19.
 	  	 Security Deposit
 	  	 7
 
	 20.
 	  	 Limitation of Tenant’s Remedies
 	  	 7
 
	 21.
 	  	 Assignment and Subletting
 	  	 8
 
	 22.
 	  	 Authority of Tenant
 	  	 8
 
	 23.
 	  	 Condemnation
 	  	 8
 
	 24.
 	  	 Casualty Damage
 	  	 9
 
	 25.
 	  	 Holding Over
 	  	 9
 
	 26.
 	  	 Default
 	  	 10
 
	 27.
 	  	 Liens
 	  	 11
 
	 28.
 	  	 Substitution
 	  	 11
 
	 29.
 	  	 Transfers by Landlord
 	  	 11
 
	 30.
 	  	 Right of Landlord to Perform Tenant’s Covenants
 	  	 11
 
	 31.
 	  	 Waiver
 	  	 11
 
	 32.
 	  	 Notices
 	  	 11
 
	 33.
 	  	 Attorney’s Fees
 	  	 12
 
	 34.
 	  	 Successors and Assigns
 	  	 12
 
	 35.
 	  	 Force Majeure
 	  	 12
 
	 36.
 	  	 Surrender of Premises
 	  	 12
 
	 37.
 	  	 Hazardous Materials
 	  	 12
 
	 38.
 	  	 Miscellaneous
 	  	 13
 
	 39.
 	  	 Additional Provisions
 	  	 14
 
	 40.
 	  	 Jury Trial Waiver
 	  	 15
 
	  	  	 Signatures
 	  	 15
 

 
  
 
	 Exhibits:
 	  	  
	  	  	  
	  	  	 Exhibit A
 	  	 Rules and Regulations
 
	  	  	 Exhibit B
 	  	 Site Plan, Property Description
 
	  	  	 Exhibit C
 	  	 Lease Improvement Agreement
 
	  	  	 Exhibit D
 	  	 Hazardous Materials Questionnaire
 
	  	  	 Exhibit E
 	  	 Form of Letter of Credit
 
	  	  	  	  	  
	  	  	 Additional Exhibits as Required
 

 
 

 i 

 LEASE 
  
 THIS LEASE is made as of the 7th day of June, 2002, by and between EOP-INDUSTRIAL PORTFOLIO, L.L.C., a Delaware limited liability company (hereinafter called “Landlord”), and KOSAN
BIOSCIENCES INCORPORATED, a Delaware corporation (hereinafter called “Tenant”). 
  
 1.    PREMISES 
  
 Landlord leases to Tenant and Tenant leases from
Landlord, upon the terms and conditions hereinafter set forth, those premises (the “Premises”) cross-hatched in red on Exhibit B and described in the Basic Lease Information. The Premises shall be all or part of a
building (the “Building”) and of a project (the “Project”), which may consist of more than one building and additional facilities, as described in the Basic Lease Information. The Building and Project are outlined
in blue and green respectively on Exhibit B. 
  
 2.    POSSESSION AND LEASE COMMENCEMENT

  
 This Lease shall commence August 1, 2003. 
  
 3.    TERM 
  
 The
term of this Lease (the “Term”) shall commence on the Term Commencement Date and continue in full force and effect for the number of months specified as the Length of Term in the Basic Lease Information or until this Lease is
terminated as otherwise provided herein. If the Term Commencement Date is a date other than the first day of the calendar month, the Term shall be the number of months of the Length of Term in addition to the remainder of the calendar month
following the Term Commencement Date. 
  
 4.    USE 
  
 A.  General.    Tenant shall use the Premises for the permitted use specified in the Basic Lease
Information (“Permitted Use”) and for no other use or purpose. Tenant shall control Tenant’s employees, agents, customers, visitors, invitees, licensees, contractors, assignees and subtenants (collectively,
“Tenant’s Parties”) in such a manner that Tenant and Tenant’s Parties cumulatively do not exceed the parking density specified in the Basic Lease Information (the “Parking Density”) at any time. So long as
Tenant is occupying the Premises, Tenant and Tenant’s Parties shall have the nonexclusive right to use, in common with other parties occupying the Building or Project, the parking areas, driveways and other common areas of the Building and
Project, including without limitation the non-exclusive use of four (4) parking stalls per 1,000 square feet occupied hereunder, subject to the terms of this Lease and such rules and regulations as Landlord may from time to time prescribe. Landlord
reserves the right, without notice or liability to Tenant, and without the same constituting an actual or constructive eviction, to alter or modify the common areas from time to time, including the location and configuration thereof, and the
amenities and facilities which Landlord may determine to provide from time to time. 
  
 B.  Limitations.    Tenant shall not permit any odors, smoke, dust, gas, substances, noise or vibrations to emanate from the Premises or from any portion of the common areas as a result of
Tenant’s or any Tenant’s Party’s use thereof, nor take any action which would constitute a nuisance or would disturb, obstruct or endanger any other tenants or occupants of the Building or Project or elsewhere, or unreasonably
interfere with their use of their respective premises or common areas. Storage outside the Premises of materials, vehicles or any other items is prohibited. Tenant shall not use or allow the Premises to be used for any immoral, improper or unlawful
purpose, nor shall Tenant cause or maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or suffer the commission of any waste in, on or about the Premises. Tenant shall not allow any sale by auction upon the
Premises, or place any loads upon the floors, walls or ceilings which could endanger the structure Tenant shall not place any harmful substances in the drainage system of the Building or Project except to the extent permitted in accordance with
applicable Laws. No waste, materials or refuse shall be dumped upon or permitted to remain outside the Premises except in trash containers placed inside exterior enclosures designated for that purpose by Landlord. Landlord shall not be responsible
to Tenant for the non-compliance by any other tenant or occupant of the Building or Project with any of the above-referenced rules or any other terms or provisions of such tenant’s or occupant’s lease or other contract.

  
         C.  Compliance with Regulations.    By
entering the Premises, Tenant accepts the Premises in the condition existing as of the date of such entry. Tenant shall at its sole cost and expense strictly comply with all existing or future applicable municipal, state and federal and other
governmental statutes, rules, requirements, regulations, laws and ordinances, including zoning ordinances and regulations, and covenants, easements and restrictions of record governing and relating to the use, occupancy or possession of the
Premises, to Tenant’s use of the common areas, or to the use, storage, generation or disposal of Hazardous Materials (hereinafter defined) (collectively “Regulations”). Tenant shall at its sole cost and expense obtain any and
all licenses or permits necessary for Tenant’s use of the Premises. Tenant shall at its sole cost and expense promptly comply with the requirements of any board of fire underwriters or other similar body now or hereafter constituted. Tenant
shall not do or permit anything to be done in, on, under or about the Project or bring or keep anything which will in any way increase the rate of any insurance upon the Premises, Building or Project or upon any contents therein or cause a
cancellation of said insurance. Tenant shall indemnify, defend (by counsel reasonably acceptable to Landlord), protect and hold Landlord harmless from and against any loss, cost, expense, damage, attorneys’ fees or liability arising out of the
failure of Tenant to comply with any Regulation accruing during the Term or any extension of the Lease. Tenant’s obligations pursuant to the foregoing indemnity shall survive the expiration or earlier termination of this Lease. 

 
 5.    RULES AND REGULATIONS 
  
 Tenant shall faithfully observe and comply with the building rules and regulations attached hereto as Exhibit A and any other reasonable rules and regulations
and any modifications or additions thereto which Landlord may from time to time prescribe in writing for the purpose of maintaining the proper care, cleanliness, safety, traffic flow and general order of the Premises or the Building or Project.
Tenant shall cause Tenant’s Parties to comply with such rules and regulations. Landlord shall not be responsible to Tenant for the non-compliance by any other tenant or occupant of the Building or Project with any of such rules and regulations,
any other tenant’s or occupant’s lease or any Regulations. 
  
 6.    RENT 

 
 A.  Base Rent.    Tenant shall pay to Landlord and Landlord shall receive, without notice
or demand throughout the Term, Base Rent as specified in the Basic Lease Information, payable in monthly installments in advance on or before the first day of each calendar month, in lawful money of the United States, without deduction or offset
whatsoever except as specifically allowed hereunder, at the Remittance Address specified in the Basic Lease Information or to such other place as Landlord may from time to time designate in writing. Base Rent for the first full month of the Term
shall be paid by Tenant upon Tenant’s execution of this Lease. If the obligation for payment of Base 
 

 1 

 Rent commences on a day other than the first day of a month, then Base Rent shall be prorated and the prorated installment shall be paid on the
first day of the calendar month next succeeding the Term Commencement Date. The Base Rent payable by Tenant hereunder is subject to adjustment as provided elsewhere in this Lease, as applicable. As used herein, the term “Base Rent” shall
mean the Base Rent specified in the Basic Lease Information as it may be so adjusted from time to time. 
  
 B.  Additional Rent.    All monies other than Base Rent required to be paid by Tenant hereunder, including, but not limited to, Tenant’s Proportionate Share of Operating Expenses, as
specified in Paragraph 7 of this Lease, charges to be paid by Tenant under Paragraph 15, the interest and late charge described in Paragraphs 26.D. and E., and any monies spent by Landlord pursuant to Paragraph 30, shall be considered additional
rent (“Additional Rent”). “Rent” shall mean Base Rent and Additional Rent. 
  
 7.    OPERATING EXPENSES 
  
 A.  Operating
Expenses.    In addition to the Base Rent required to be paid hereunder, Tenant shall pay as Additional Rent, Tenant’s Proportionate Share of the Building and/or Project (as applicable), as defined in the Basic Lease
Information, of Operating Expenses (defined below) in the manner set forth below. Tenant shall pay the applicable Tenant’s Proportionate Share of each such Operating Expenses. “Operating Expenses” shall mean all expenses and
costs of every kind and nature which Landlord shall pay or become obligated to pay, because of or in connection with the ownership, management, maintenance, repair, preservation, replacement and operation of the Building or Project and its
supporting facilities (as determined in accordance with generally accepted accounting principles) other than those expenses and costs which are specifically attributable to Tenant or which are expressly made the financial responsibility of Landlord
or specific tenants of the Building or Project pursuant to this Lease. Operating Expenses shall include, but are not limited to, the following: 
  
 (1)  Taxes.    All real property taxes and assessments, possessory interest taxes, sales taxes, personal property taxes, business or license taxes or fees, gross
receipts taxes, service payments in lieu of such taxes or fees, annual or periodic license or use fees, excises, transit charges, and other impositions, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of any kind
(including fees “in-lieu” of any such tax or assessment) which are now or hereafter assessed, levied, charged, confirmed, or imposed by any public authority upon the Building or Project, its operations or the Rent (or any portion or
component thereof), or any tax, assessment or fee imposed in substitution, partially or totally, of any of the above. Operating Expenses shall also include any taxes, assessments, reassessments, or other fees or impositions with respect to the
development, leasing, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, Building or Project or any portion thereof, including, without limitation, by or for Tenant, and all increases therein or reassessments
thereof whether the increases or reassessments result from increased rate and/or valuation (whether upon a transfer of the Building or Project or any portion thereof or any interest therein or for any other reason). Operating Expenses shall not
include inheritance or estate taxes imposed upon or assessed against the interest of any person in the Project, or taxes computed upon the basis of the net income of any owners of any interest in the Project. If it shall not be lawful for Tenant to
reimburse Landlord for all or any part of such taxes, the monthly rental payable to Landlord under this Lease shall be revised to net Landlord the same net rental after imposition of any such taxes by Landlord as would have been payable to Landlord
prior to the payment of any such taxes. 
  
 (2)  Insurance.    All insurance premiums and costs, including, but not limited to, any deductible amounts, premiums and other costs of insurance incurred by Landlord, including for the insurance
coverage set forth in Paragraph 8.A. herein, but excluding earthquake insurance obtained without Tenant’s prior consent. 
  
 (3)  Common Area Maintenance. 
  
 (a)  Repairs, replacements, and general maintenance of and for the Building and Project and public and common areas and facilities of and comprising the Building and Project, including, but not limited to, the roof
and roof membrane, elevators, mechanical rooms, alarm systems, pest extermination, landscaped areas, parking and service areas, driveways, sidewalks, truck staging areas, rail spur areas, fire sprinkler systems, sanitary and storm sewer lines,
utility services, heating/ventilation/air conditioning systems, electrical, mechanical or other systems, telephone equipment and wiring servicing, plumbing, lighting, and any other items or areas which affect the operation or appearance of the
Building or Project, which determination shall be at Landlord’s discretion, except for: those items to the extent paid for by the proceeds of insurance; and those items attributable solely or jointly to specific tenants of the Building or
Project. 
  
 (b)  Repairs, replacements, and general maintenance shall include the
cost of any improvements made to or assets acquired for the Project or Building that in Landlord’s discretion may reduce any other Operating Expenses, including present or future repair work, are reasonably necessary for the health and safety
of the occupants of the Building or Project, or for the operation of the Building systems, services and equipment, or are required to comply with any Regulation, such costs or allocable portions thereof to be amortized in accordance with generally
accepted accounting principles, together with interest on the unamortized balance at the rate of 10% per annum. 
  
 (c)  Payment under or for any easement, license, permit, operating agreement, declaration, restrictive covenant or instrument relating to the Building or Project. 
  

(d)  All expenses and rental related to services and costs of supplies, materials and equipment used in operating, managing and
maintaining the Premises, Building and Project, the equipment therein and the adjacent sidewalks, driveways, parking and service areas, including, without limitation, expenses related to service agreements regarding security, fire and other alarm
systems, janitorial services to the extent not addressed in Paragraph 11 hereof, window cleaning, elevator maintenance, Building exterior maintenance, landscaping and expenses related to the administration, management and operation of the Project.

  
 (e)  The cost of supplying any services and utilities which benefit all or a
portion of the Premises, Building or Project to the extent not addressed in Paragraph 15 hereof. 
  
 (f)  Legal expenses and the cost of audits by certified public accountants; provided, however, that legal expenses chargeable as Operating Expenses shall not include the cost of negotiating leases, collecting rents,
evicting tenants, sale of the Building or Premises, nor shall it include costs incurred in legal proceedings with or against any tenant or buyer or to enforce the provisions of any lease or purchase agreement. 
  
 (g)  A management and accounting cost recovery fee equal to ten percent (10%) of the sum of the Operating
Expenses. 
  
 If the rentable area of the Building and/or Project is not fully occupied during any fiscal year of the
Term as determined by Landlord, an adjustment shall be made in Landlord’s discretion in computing the Operating Expenses for such year so that Tenant pays an equitable portion of all variable items (e.g., utilities, janitorial services and
other component expenses that are affected by variations in occupancy 
 

 2 

  
 levels) of Operating Expenses, as reasonably determined by Landlord; provided, however, that in no event
shall Landlord be entitled to collect in excess of one hundred percent (100%) of the total Operating Expenses from all of the tenants in the Building or Project, as the case may be. 
  
 To the extent commercially reasonable, Landlord will use third party contractors to perform maintenance, repairs, and other functions under this Paragraph. Landlord will
negotiate at arms length with these contractors, suppliers and/or vendors to obtain competitive prices and Landlord will use its efforts during this Lease to obtain competitive pricing for services and products for which tenant is financially
responsible under this Paragraph 7. 
  
 Notwithstanding the foregoing, Operating Expenses shall not include (i)
depreciation on the Building, (ii) real estate brokers’ commissions, (iii) ground lease payments, principal, interest, loan fees and other carrying costs relating to any mortgage or deed of trust on the Building or Project, (iv) costs, fines or
penalties for violations by Landlord of any governmental rule, (v) any obligations of Landlord with respect to Hazardous Materials, (vi) any amounts for services paid to entities related to Landlord to the extent said amounts exceed the amounts that
would have been paid to unaffiliated entities for the same services; (vii) any costs incurred to remedy any defects in construction of the Building, (viii) any amounts for the acquisition or maintenance of art work located in the Building or Project
or the cost of insurance thereon, (ix) costs of repairs expressly the responsibility of Landlord, (x) those repairs paid for by proceeds of insurance or by Tenant or other third parties, and (xi) alterations attributable solely to tenants of the
Project other than Tenant, other than ordinary repair and maintenance. If any capital expense borne under Paragraph 7 is above Ten Thousand Dollars ($10,000.00), then the expense will be amortized over the useful life together with interest on the
unamortized balance at the rate of ten percent (10%) per annum. 
  
 Operating Expenses shall not include the cost of
providing tenant improvements or other specific costs incurred for the account of, separately billed to and paid by specific tenants of the Building or Project, the initial construction cost of the Building, or debt service on any mortgage or deed
of trust recorded with respect to the Project other than pursuant to Paragraph 7.A.(3)(b) above. Notwithstanding anything herein to the contrary, in any instance wherein Landlord, in Landlord’s reasonable discretion, deems Tenant to be
responsible for any amounts greater than Tenant’s Proportionate Share, Landlord shall have the right to allocate costs in any manner Landlord deems reasonably appropriate. 
  
 The above enumeration of services and facilities shall not be deemed to impose an obligation on Landlord to make available or provide such services or facilities except to
the extent if any that Landlord has specifically agreed elsewhere in this Lease to make the same available or provide the same. Without limiting the generality of the foregoing, Tenant acknowledges and agrees that it shall be responsible for
providing adequate security for its use of the Premises, the Building and the Project and that Landlord shall have no obligation or liability with respect thereto, except to the extent if any that Landlord has specifically agreed elsewhere in this
Lease to provide the same. 
  
 B.  Payment of Estimated Operating
Expenses.    “Estimated Operating Expenses” for any particular year shall mean Landlord’s estimate of the Operating Expenses for such fiscal year made with respect to such fiscal year as hereinafter
provided. Landlord shall have the right from time to time to revise its fiscal year and interim accounting periods so long as the periods as so revised are reconciled with prior periods in a reasonable manner. During the last month of each fiscal
year during the Term, or as soon thereafter as practicable, Landlord shall give Tenant written notice of the Estimated Operating Expenses for the ensuing fiscal year. Tenant shall pay Tenant’s Proportionate Share of the Estimated Operating
Expenses with installments of Base Rent for the fiscal year to which the Estimated Operating Expenses applies in monthly installments on the first day of each calendar month during such year, in advance. Such payment shall be construed to be
Additional Rent for all purposes hereunder. If at any time during the course of the fiscal year, Landlord determines that Operating Expenses are projected to vary from the then Estimated Operating Expenses by more than ten percent (10%), Landlord
may, by written notice to Tenant, revise the Estimated Operating Expenses for the balance of such fiscal year, and Tenant’s monthly installments for the remainder of such year shall be adjusted so that by the end of such fiscal year Tenant has
paid to Landlord Tenant’s Proportionate Share of the revised Estimated Operating Expenses for such year, such revised installment amounts to be Additional Rent for all purposes hereunder. 
  

        C.  Computation of Operating Expense Adjustment.    “Operating Expense Adjustment” shall
mean the difference between Estimated Operating Expenses and actual Operating Expenses for any fiscal year determined as hereinafter provided. Within ninety (90) days after the end of each fiscal year, or as soon thereafter as practicable, Landlord
shall deliver to Tenant a statement of actual Operating Expenses for the fiscal year just ended, accompanied by a computation of Operating Expense Adjustment. If such statement shows that Tenant’s payment based upon Estimated Operating Expenses
is less than Tenant’s Proportionate Share of Operating Expenses, then Tenant shall pay to Landlord the difference within twenty (20) days after receipt of such statement, such payment to constitute Additional Rent for all purposes hereunder. If
such statement shows that Tenant’s payments of Estimated Operating Expenses exceed Tenant’s Proportionate Share of Operating Expenses, then (provided that Tenant is not in default under this Lease) Landlord shall pay to Tenant the
difference within twenty (20) days after delivery of such statement to Tenant. If this Lease has been terminated or the Term hereof has expired prior to the date of such statement, then the Operating Expense Adjustment shall be paid by the
appropriate party within twenty (20) days after the date of delivery of the statement. Should this Lease commence or terminate at any time other than the first day of the fiscal year, Tenant’s Proportionate Share of the Operating Expense
Adjustment shall be prorated based on the exact number of calendar days and the number of calendar months during such fiscal year that this Lease is in effect. Notwithstanding anything to the contrary contained in Paragraph 7.A or 7.B,
Landlord’s failure to provide any notices or statements within the time periods specified in those paragraphs shall in no way excuse Tenant from its obligation to pay Tenant’s Proportionate Share of Operating Expenses. 

 
 D.  Net Lease.    This shall be a triple net Lease and Base Rent shall be paid to Landlord
absolutely net of all costs and expenses, except as specifically provided to the contrary in this Lease. The provisions for payment of Operating Expenses and the Operating Expense Adjustment are intended to pass on to Tenant and reimburse Landlord
for all costs and expenses of the nature described in Paragraph 7.A. incurred in connection with the ownership, management, maintenance, repair, preservation, replacement and operation of the Building and/or Project and its supporting facilities and
such additional facilities now and in subsequent years as may be determined by Landlord to be necessary or desirable to the Building and/or Project. 
  
 E.  Tenant Audit.    If Tenant shall dispute the amount set forth in any statement provided by Landlord under Paragraph 7.B. or 7.C. above, Tenant shall have the
right, not later than twenty (20) days following receipt of such statement and upon the condition that Tenant shall first deposit with Landlord the full amount in dispute, to cause Landlord’s books and records with respect to Operating Expenses
for such fiscal year to be audited by certified public accountants selected by Tenant and subject to Landlord’s reasonable right of approval. The Operating Expense Adjustment shall be appropriately adjusted on the basis of such audit. If such
audit discloses a liability for a refund in excess of ten percent (10%) of Tenant’s Proportionate Share of the Operating Expenses previously reported, the cost of such audit shall be borne by Landlord; otherwise the cost of such audit shall be
paid by Tenant. If Tenant shall not request an audit in accordance with the provisions of this Paragraph 7.E. within twenty (20) days after receipt of Landlord’s statement provided pursuant to Paragraph 7.B. or 7.C., such statement shall be
final and binding for all purposes hereof. Tenant acknowledges and agrees that any information revealed in the above described audit may contain proprietary and sensitive information and that significant damage could result to Landlord if such
information were disclosed to any party other than Tenant’s auditors. Tenant shall not in any manner disclose, provide or make available any information revealed by the audit to any person or entity without Landlord’s prior written
consent, which consent may be withheld by Landlord in its sole and absolute discretion. The information disclosed by the audit will be used by Tenant solely for the purpose of evaluating Landlord’s books and records in connection with this
Paragraph 7.E. 
 

 3 

  
 8.    INSURANCE AND INDEMNIFICATION 
  
 A.  Landlord’s Insurance.    All insurance maintained by Landlord shall be for the sole benefit
of Landlord and under Landlord’s sole control. 
  
 (1)  Property
Insurance.    Landlord agrees to maintain property insurance insuring the Building against damage or destruction due to risk including fire, vandalism, and malicious mischief in an amount not less than eighty percent (80%) of
the replacement cost thereof, in the form and with deductibles and endorsements as selected by Landlord. At its election, Landlord may instead (but shall have no obligation to) obtain “All Risk” coverage, and may also obtain earthquake,
pollution, and/or flood insurance in amounts selected by Landlord. 
  
 (2)  Optional
Insurance.    Landlord, at Landlord’s option, may also (but shall have no obligation to) carry (i) insurance against loss of rent, in an amount equal to the amount of Base Rent and Additional Rent that Landlord could be
required to abate to all Building tenants in the event of condemnation or casualty damage for a period of twelve (12) months; and (ii) liability insurance and such other insurance as Landlord may deem prudent or advisable, including, without
limitation, liability insurance in such amounts and on such terms as Landlord shall determine. Landlord shall not be obligated to insure, and shall have no responsibility whatsoever for any damage to, any furniture, machinery, goods, inventory or
supplies, or other personal property or fixtures which Tenant may keep or maintain in the Premises, or any leasehold improvements, additions or alterations within the Premises. 
  
 B.  Tenant’s Insurance.    Tenant shall procure at Tenant’s sole cost and expense and keep in effect from the date of this
Lease and at all times until the end of the Term the following: 
  
 (1)  Property
Insurance.    Insurance on all personal property and fixtures of Tenant and all improvements, additions or alterations made by or for Tenant to the Premises on an “special form” basis, insuring such property for the
full replacement value of such property. 
  
 (2)  Liability
Insurance.    Commercial General Liability insurance covering bodily injury and property damage liability occurring in or about the Premises or arising out of the use and occupancy of the Premises and the Project, and any
part of either, and any areas adjacent thereto, and the business operated by Tenant or by any other occupant of the Premises. Such insurance shall include contractual liability coverage. Such coverage shall have a minimum combined single limit of
liability of at least Two Million Dollars ($2,000,000.00), and a minimum general aggregate limit of Three Million Dollars ($3,000,000.00), with an “Additional Insured—Managers or Lessors of Premises Endorsement” and the
“Amendment of the Pollution Exclusion Endorsement.” All such policies shall be written to apply to bodily injury (including death), property damage or loss, personal and advertising injury and other covered loss, however occasioned,
occurring during the policy term, shall be endorsed to add Landlord and any party holding an interest to which this Lease may be subordinated as an additional insured, and shall provide that such coverage shall be “primary” and
non-contributing with any insurance maintained by Landlord, which shall be excess insurance only. Such coverage shall also contain endorsements including employees as additional insureds if not covered by Tenant’s Commercial General Liability
Insurance. All such insurance shall provide for the severability of interests of insureds; and shall be written on an “occurrence” basis, which shall afford coverage for all claims based on acts, omissions, injury and damage, which
occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. 
  
 (3)  Workers’ Compensation and Employers’ Liability Insurance.    Workers’ Compensation Insurance as required by any Regulation, and Employers’ Liability Insurance in amounts
not less than One Million Dollars ($1,000,000) each accident for bodily injury by accident; One Million Dollars ($1,000,000) policy limit for bodily injury by disease; and One Million Dollars ($1,000,000) each employee for bodily injury by disease.

  
 (4)  Alterations Requirements.    In the event Tenant shall
desire to perform any Alterations, Tenant shall deliver to Landlord, prior to commencing such Alterations (i) evidence satisfactory to Landlord that Tenant carries “Builder’s Risk” insurance covering construction of such Alterations
in an amount and form approved by Landlord, and (ii) such other insurance as Landlord shall nondiscriminatorily require. 
  
         (5)  General Insurance Requirements.    All coverages described in this Paragraph 8.B shall be endorsed to (i) provide Landlord with thirty (30)
days’ notice of cancellation or change in terms; and (ii) waive all rights of subrogation by the insurance carrier against Landlord. If at any time during the Term the amount or coverage of insurance which Tenant is required to carry under this
Paragraph 8.B is, in Landlord’s reasonable judgment, materially less than the amount or type of insurance coverage typically carried by owners or tenants of properties located in the general area in which the Premises are located which are
similar to and operated for similar purposes as the Premises or if Tenant’s use of the Premises should change with or without Landlord’s consent, Landlord shall have the right to require Tenant to increase the amount or change the types of
insurance coverage required under this Paragraph 8.B. All insurance policies required to be carried by Tenant under this Lease shall be written by companies rated A X or better in “Best’s Insurance Guide” and authorized to do business
in the State of California. Tenant shall deliver to Landlord on or before the Term Commencement Date, and thereafter at least thirty (30) days before the expiration dates of the expired policies, certified copies of Tenant’s insurance policies,
or a certificate evidencing the same issued by the insurer thereunder; and, if Tenant shall fail to procure such insurance, or to deliver such policies or certificates, Landlord may, at Landlord’s option and in addition to Landlord’s other
remedies in the event of a default by Tenant hereunder, procure the same for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent. 
  
 C.  Indemnification.    Tenant shall indemnify, defend by counsel reasonably acceptable to Landlord, protect and hold Landlord (or any
successor), Equity Office Properties Trust, a Maryland real estate investment trust, EOP Operating Limited Partnership, a Delaware limited partnership, Equity Office Properties Management Corp., a Delaware corporation, and each of their respective
directors, shareholders, partners, lenders, members, managers, contractors, affiliates, and employees (collectively, “Landlord Indemnities”) harmless from and against any and all claims, liabilities, losses, costs, loss of rents,
liens, damages, injuries or expenses, including reasonable attorneys’ and consultants’ fees and court costs, demands, causes of action, or judgments, directly or indirectly arising out of or related to: (1) claims of injury to or death of
persons or damage to property occurring or resulting directly or indirectly from the use or occupancy of the Premises, Building or Project by Tenant or Tenant’s Parties, or from activities or failures to act of Tenant or Tenant’s Parties;
(2) claims arising from work or labor performed, or for materials or supplies furnished to or at the request of Tenant in connection with performance of any work done for the account of Tenant within the Premises or Project; and (3) claims arising
from any breach or default on the part of Tenant in the performance of any covenant contained in this Lease. The foregoing indemnity by Tenant shall not be applicable to claims to the extent arising from the active negligence or willful misconduct
of Landlord. Landlord shall not be liable to Tenant and Tenant hereby waives all claims against Landlord for any injury to or death of or damage to any person or property or business loss in or about the Premises, Building or Project by or from any
cause whatsoever (other than Landlord’s negligence or willful misconduct) and, without limiting the generality of the foregoing, whether caused by water leakage of any character from the roof, walls, basement or other portion of the Premises,
Building or Project, or caused by gas, fire, oil or electricity in, on or about the Premises, Building or Project, acts of God or of third parties, or any matter outside of the reasonable control of Landlord. Landlord shall defend, indemnify and
hold harmless Tenant, its agents, and any and all affiliates of Tenant including, without limitation, any corporations or other 
 

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 entities controlling, controlled by or under common control with Tenant, from and against any and all claims or liabilities arising from (i) the
negligence or willful misconduct of Landlord, its officers, employees, agents, visitors, invitees or licensees, or (ii) any breach or default in any material warranty or material representation of Landlord hereunder or the performance of any
material covenant on Landlord’s part to be performed hereunder. The provisions of this Paragraph shall survive the expiration or earlier termination of this Lease with respect to claims or liability arising in connection with the period prior
to such expiration or termination. 
  
 9.    WAIVER OF SUBROGATION 
  
 Subject to the approval of each insurance carrier affected thereby, Landlord and Tenant each waives any claim, loss or cost it might have
against the other for any injury to or death of any person or persons, or damage to or theft, destruction, loss, or loss of use of any property (a “Loss”), to the extent the same is insured against (or is required to be insured
against under the terms hereof) under any property damage insurance policy covering the Building, the Premises, Landlord’s or Tenant’s fixtures, personal property, leasehold improvements, or business, regardless of whether the negligence
of the other party caused such Loss. 
  
 10.    LANDLORD’S REPAIRS AND MAINTENANCE

  
 Landlord shall maintain in good repair, reasonable wear and tear excepted, at Landlord’s expense and not
as an Operating Expense except to the extent provided in Article 7 above, the structural soundness of the roof, foundations, and exterior walls of the Building. The term “exterior walls” as used herein shall not include windows, glass or
plate glass, doors, dock bumpers or dock plates, special store fronts or office entries. Landlord shall perform on behalf of Tenant and other tenants of the Project the maintenance of the public and common areas of the Project, including, but not
limited to, the landscaped areas, parking areas, driveways, the truck staging area, rail spur areas, fire sprinkler systems, sanitary and storm sewer lines, utility services, electric and telephone equipment servicing the Building(s), exterior
lighting, and anything that affects the operation and exterior appearance of the Project. Any damage caused by or repairs necessitated by any negligence or act of Tenant or Tenant’s Parties may be repaired by Landlord at Landlord’s option
and Tenant’s expense. Tenant shall immediately give Landlord written notice of any defect or need of repairs in such components of the Building for which Landlord is responsible, after which Landlord shall have a reasonable opportunity and the
right to enter the Premises at all reasonable times to repair same. Landlord, in the course of its maintenance and repairs, shall use its best efforts to minimize any interference with Tenant’s operations. Landlord’s liability with respect
to any defects, repairs, or maintenance for which Landlord is responsible under any of the provisions of this Lease shall be limited to the cost of such repairs or maintenance, and there shall be no abatement of rent and no liability of Landlord by
reason of any injury to or interference with Tenant’s business arising from the making of repairs, alterations or improvements in or to any portion of the Premises, the Building or the Project or to fixtures, appurtenances or equipment in the
Building, except as provided in Paragraph 24. Landlord, in the course of its maintenance and repairs shall use its best efforts to minimize any interference with Tenant’s operations. If Landlord fails to timely perform its maintenance and
repair obligations hereunder and, as a consequence, Tenant’s use of the Premises is substantially impaired, Tenant, in addition to all other remedies available hereunder or by law shall have the right to cause such repair or maintenance to be
performed by Landlord. By taking possession of the Premises, Tenant accepts them “as is,” as being in good order, condition and repair and the condition in which Landlord is obligated to deliver them and suitable for the Permitted Use and
Tenant’s intended operations in the Premises, whether or not any notice of acceptance is given. 
  
 11.    TENANT’S REPAIRS AND MAINTENANCE 
  
 Tenant shall at all times
during the Term at Tenant’s expense maintain all parts of the Premises and such portions of the Building as are within the exclusive control of Tenant in a good, clean and secure condition and promptly make all necessary repairs and
replacements, including but not limited to, all windows, glass, doors, walls, including demising walls, and wall finishes, floors and floor covering, heating, ventilating and air conditioning systems, ceiling insulation, truck doors, hardware, dock
bumpers, dock plates and levelers, plumbing work and fixtures, downspouts, entries, skylights, smoke hatches, roof vents, electrical and lighting systems, and fire sprinklers, with materials and workmanship of the same character, kind and quality as
the original. Tenant shall at Tenant’s expense also perform regular removal of trash and debris. Tenant shall, at Tenant’s own expense, enter into a regularly scheduled preventative maintenance/service contract with a maintenance
contractor for servicing all hot water, heating and air conditioning systems and equipment within or serving the Premises. The maintenance contractor and the contract must be approved by Landlord. The service contract must include all services
suggested by the equipment manufacturer within the operation/maintenance manual and must become effective and a copy thereof delivered to Landlord within thirty (30) days after the Term Commencement Date. Nothing herein shall expressly or by
implication render Tenant Landlord’s agent or contractor to effect any repairs or maintenance required of Tenant under this Paragraph 11, as to all of which Tenant shall be solely responsible. 
  
 12.    ALTERATIONS 
  
         A.  Except with respect to the initial tenant improvements described in Exhibit C attached hereto, which improvements Landlord by execution hereof hereby
approves, Tenant shall not make, or allow to be made, any alterations, physical additions, improvements or partitions, including without limitation the attachment of any fixtures or equipment, in, about or to the Premises
(“Alterations”) costing more than Ten Thousand Dollars ($10,000.00) in each instance and cumulatively no more than Twenty Five Thousand Dollars ($25,000.00) each year without obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld with respect to proposed Alterations which: (a) comply with all applicable Regulations; (b) are, in Landlord’s reasonable opinion, compatible with the Building or the Project and its mechanical,
plumbing, electrical, heating/ventilation/air conditioning systems; and (c) in Landlord’s reasonable opinion will not interfere with the use and occupancy of any other portion of the Building or Project by any other tenant or its invitees.
Specifically, but without limiting the generality of the foregoing, Landlord shall have the right of written consent for all plans and specifications for Alterations subject to this Section 12, construction means and methods, and any contractor or
subcontractor to be employed on the work of Alterations. Tenant shall also supply to Landlord any documents and information reasonably requested by Landlord in connection with Landlord’s consideration of a request for approval hereunder. Tenant
shall cause all Alterations to be accomplished in a good and workmanlike manner, and to comply with all applicable Regulations and Paragraph 27 hereof. Tenant shall at Tenant’s sole expense, perform any additional work required under applicable
Regulations due to the Alterations hereunder. No review or consent by Landlord of or to any proposed Alteration or additional work shall constitute a waiver of Tenant’s obligations under this Paragraph 12. Tenant shall reimburse Landlord for
all costs which Landlord may incur in connection with granting approval to Tenant for any such Alterations, including any costs or expenses which Landlord may incur in electing to have outside architects and engineers review said plans and
specifications, provided the cost to Tenant of any such review shall not exceed Five Hundred Dollars ($500.00). All such Alterations shall remain the property of Tenant until the expiration or earlier termination of this Lease, at which time they
shall be and become the property of Landlord; provided, however, that Landlord may, at Landlord’s option, by written notice at the time it approves any such Alterations, require that Tenant, at Tenant’s expense, remove any or all
Alterations made by Tenant and restore the Premises by the expiration or earlier termination of this Lease, to their condition existing prior to the construction of any such Alterations provided Tenant shall have no obligation to remove the initial
tenant improvements described in Exhibit C hereto. All such removals and restoration shall be accomplished in a good and workmanlike manner so as not to cause damage to the Premises or Project. If Tenant fails to remove such Alterations or
Tenant’s trade fixtures or furniture or other personal property, Landlord may keep and use them or remove any of them and cause them to be stored or sold in accordance with applicable law, at Tenant’s sole expense. In addition to and
wholly apart from Tenant’s obligation to pay Tenant’s Proportionate Share of Operating Expenses, Tenant shall be responsible for and shall pay prior to delinquency any taxes or governmental service fees, possessory interest taxes, fees or
charges in lieu of any such taxes, capital levies, or other charges imposed upon, levied with respect to or assessed against its fixtures or personal property, on the value of Alterations within the Premises, 
 

 5 

 and on Tenant’s interest pursuant to this Lease, or any increase in any of the foregoing based on such Alterations. To the extent that any
such taxes are not separately assessed or billed to Tenant, Tenant shall pay the amount thereof as invoiced to Tenant by Landlord. 
  
 B.  In compliance with Paragraph 27 hereof, at least ten (10) business days before beginning construction of any Alteration, Tenant shall give Landlord written notice of the expected commencement date of
that construction to permit Landlord to post and record a notice of non-responsibility. Upon substantial completion of construction, if the law so provides, Tenant shall cause a timely notice of completion to be recorded in the office of the
recorder of the county in which the Building is located. 
  
 13.    SIGNS 
  
 Tenant shall not place, install, affix, paint or maintain any signs, notices, graphics or banners whatsoever or any window decor which is
visible in or from public view, the common areas or the exterior of the Premises or the Building, in or on any exterior window or window fronting upon any common areas or service area or upon any truck doors or man doors without Landlord’s
prior written approval which Landlord shall have the right to withhold in its absolute and sole discretion; provided that Tenant’s name shall be included in any Building-standard door and directory signage, if any, in accordance with
Landlord’s Building signage program, including without limitation, payment by Tenant of any fee charged by Landlord for maintaining such signage, which fee shall constitute Additional Rent hereunder. Any installation of signs, notices, graphics
or banners on or about the Premises or Project approved by Landlord shall be subject to any Regulations and to any other requirements imposed by Landlord. Tenant shall remove all such signs or graphics by the expiration or any earlier termination of
this Lease. Such installations and removals shall be made in such manner as to avoid injury to or defacement of the Premises, Building or Project and any other improvements contained therein, and Tenant shall repair any injury or defacement
including without limitation discoloration caused by such installation or removal. 
  
 14.    INSPECTION/POSTING NOTICES 
  
 After reasonable notice, except in
emergencies where no such notice shall be required, Landlord and Landlord’s agents and representatives, shall have the right to enter the Premises to inspect the same, to clean, to perform such work as may be permitted or required hereunder, to
make repairs, improvements or alterations to the Premises, Building or Project or to other tenant spaces therein, to deal with emergencies, to post such notices as may be permitted or required by law to prevent the perfection of liens against
Landlord’s interest in the Project or to exhibit the Premises to prospective tenants, purchasers, encumbrancers or to others, or for any other purpose as Landlord may deem necessary or desirable; provided, however, that Landlord shall use
reasonable efforts not to unreasonably interfere with Tenant’s business operations, and further provided that Tenant shall be entitled to have an employee of Tenant accompany the person(s) entering the Premises provided that Tenant makes such
employee available at the time Landlord or such other party desires to enter the Premises. Tenant shall not be entitled to any abatement of Rent by reason of the exercise of any such right of entry. Tenant waives any claim for damages for any injury
or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. Landlord shall have the right to use any and all means which Landlord may deem
necessary or proper to open said doors in an emergency, in order to obtain entry to any portion of the Premises, and any entry to the Premises or portions thereof obtained by Landlord by any of said means, or otherwise, shall not be construed to be
a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction, actual or constructive, of Tenant from the Premises or any portions thereof. At any time within six (6) months prior to the expiration of the Term or following any
earlier termination of this Lease or agreement to terminate this Lease, Landlord shall have the right to erect on the Premises, Building and/or Project a suitable sign indicating that the Premises are available for lease. 
  
 15.    SERVICES AND UTILITIES 
  
 A.  Tenant shall (where practicable) contract for and pay directly when due, for all water, gas, heat, air conditioning, light, power, telephone, sewer, sprinkler charges, cleaning,
waste disposal and other utilities and services used on or from the Premises, together with any taxes, penalties, surcharges or the like pertaining thereto, and maintenance charges for utilities and shall furnish all electric light bulbs, ballasts
and tubes used within the Premises. If any such services are not separately billed or metered to Tenant, Tenant shall pay an equitable proportion, as determined in good faith by Landlord, of all charges billed or metered with other premises. All
sums payable under this Paragraph 15 shall constitute Additional Rent hereunder. 
  
 B.  Tenant
acknowledges that Tenant has inspected and accepts the water, electricity, heat and air conditioning and other utilities and services being supplied or furnished to the Premises as of the date Tenant takes possession of the Premises, if any, as
being sufficient in their present condition, “as is,” for the Permitted Use, and for Tenant’s intended operations in the Premises. 
  
         C.  If Tenant shall require water or electric current or any other resource in excess of that being furnished or supplied for the use of the Premises as of the date
Tenant takes possession of the Premises, if any, as determined by Landlord, Tenant shall first procure the written consent of Landlord which Landlord may refuse, to the use thereof, and Landlord may cause a special meter to be installed in the
Premises so as to measure the amount of water, electric current or other resource consumed for any such other use. Tenant shall pay directly to Landlord upon demand as an addition to and separate from payment of Operating Expenses the cost of all
such additional resources, energy, utility service and meters (and of installation, maintenance and repair thereof and of any additional circuits or other equipment necessary to furnish such additional resources, energy, utility or service).
Landlord may add to the separate or metered charge a recovery of additional expense incurred in keeping account of the excess water, electric current or other resource so consumed. Landlord shall in no case be liable for any damages directly or
indirectly resulting from nor shall the Rent or any monies owed Landlord under this Lease herein reserved be abated by reason of: (a) the installation, use or interruption of use of any equipment used in connection with the furnishing of any such
utilities or services, or any change in the character or means of supplying or providing any such utilities or services or any supplier thereof; (b) the failure to furnish or delay in furnishing any such utilities or services when such failure or
delay is caused by acts of God or the elements, labor disturbances of any character, or otherwise, or because of any interruption of service due to Tenant’s use of water, electric current or other resource in excess of that being supplied or
furnished for the use of the Premises as of the date Tenant takes possession of the Premises; or (c) the inadequacy, limitation, curtailment, rationing or restriction on use of water, electricity, gas or any other form of energy or any other service
or utility whatsoever serving the Premises or Project otherwise; or (d) the partial or total unavailability of any such utilities or services to the Premises or the Building or the diminution in the quality or quantity thereof, whether by Regulation
or otherwise; or (e) any interruption in Tenant’s business operations as a result of any such occurrence; nor shall any such occurrence constitute an actual or constructive eviction of Tenant or a breach of an implied warranty by Landlord.
Landlord shall further have no obligation to protect or preserve any apparatus, equipment or device installed by Tenant in the Premises, including without limitation by providing additional or after-hours heating or air conditioning. Landlord shall
be entitled to cooperate voluntarily and in a reasonable manner with the efforts of national, state or local governmental agencies or utility suppliers in reducing energy or other resource consumption. The obligation to make services available
hereunder shall be subject to the limitations of any such voluntary, reasonable program. In addition, Landlord reserves the right to change the supplier or provider of any such utility or service from time to time. Landlord may, but shall not be
obligated to, upon notice to Tenant, contract with or otherwise obtain any electrical or other such service for or with respect to the Premises or Tenant’s operations therein from any supplier or provider of any such service. Tenant shall
cooperate with Landlord and any supplier or provider of such services designated by Landlord from time to time to facilitate the delivery of such services to Tenant at the Premises and to the Building and Project, including without limitation
allowing Landlord and Landlord’s suppliers or providers, and their respective agents and contractors, reasonable access to the Premises for the purpose of installing, maintaining, repairing, replacing or upgrading such service or any equipment
or machinery associated therewith. 
 

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 16.    SUBORDINATION 
  
 Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall
be and is hereby declared to be subject and subordinate at all times to: (a) all ground leases or underlying leases which may now exist or hereafter be executed affecting the Premises and/or the land upon which the Premises and Project are situated,
or both; and (b) any mortgage or deed of trust which may now exist or be placed upon the Building, the Project and/or the land upon which the Premises or the Project are situated, or said ground leases or underlying leases, or Landlord’s
interest or estate in any of said items which is specified as security. Notwithstanding the foregoing, Landlord shall have the right to subordinate or cause to be subordinated any such ground leases or underlying leases or any such liens to this
Lease. If any ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any subordination, attorn to and
become the Tenant of the successor in interest to Landlord provided that Tenant shall not be disturbed in its possession under this Lease by such successor in interest so long as Tenant is not in default under this Lease. Within ten (10) days after
request by Landlord, Tenant shall execute and deliver any additional documents evidencing Tenant’s attornment or the subordination of this Lease with respect to any such ground leases or underlying leases or any such mortgage or deed of trust,
in any reasonable form requested by Landlord or by any ground landlord, mortgagee, or beneficiary under a deed of trust, subject to such nondisturbance requirement. If requested in writing by Tenant, Landlord shall use commercially reasonable
efforts to obtain a subordination, nondisturbance and attornment agreement for the benefit of Tenant reflecting the foregoing from any ground landlord, mortgagee or beneficiary, at Tenant’s expense, subject to such other terms and conditions as
the ground landlord, mortgagee or beneficiary may require. Landlord will attempt to get a non-disturbance agreement from any subsequent mortgagor on the property. 
  
 17.    FINANCIAL STATEMENTS 
  
 At the
request of Landlord from time to time, but not more than twice in any twelve (12) month period, Tenant shall provide to Landlord Tenant’s and any guarantor’s current financial statements or other information discussing financial worth of
Tenant and any guarantor, which Landlord shall use solely for purposes of this Lease and in connection with the ownership, management, financing and disposition of the Project. 
  
 18.     ESTOPPEL CERTIFICATE 
  
 Tenant agrees from time to time, within ten (10) days after request of Landlord, to deliver to Landlord, or Landlord’s designee, an estoppel certificate stating that this Lease is in full force and effect, that this Lease has
not been modified (or stating all modifications, written or oral, to this Lease), the date to which Rent has been paid, the unexpired portion of this Lease, that there are no current defaults by Landlord or Tenant under this Lease (or specifying any
such defaults), that the leasehold estate granted by this Lease is the sole interest of Tenant in the Premises and/or the land at which the Premises are situated, and such other matters pertaining to this Lease as may be reasonably requested by
Landlord or any mortgagee, beneficiary, purchaser or prospective purchaser of the Building or Project or any interest therein. Failure by Tenant to execute and deliver such certificate shall constitute an acceptance of the Premises and
acknowledgment by Tenant that the statements included are true and correct without exception. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph may be relied upon by any mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or Project or any interest therein. The parties agree that Tenant’s obligation to furnish such estoppel certificates in a timely fashion is a material inducement for Landlord’s execution of this Lease.

  
 19.    SECURITY DEPOSIT 
  
         Tenant agrees to deposit with Landlord upon execution of this Lease, a security deposit as stated in the Basic Lease Information (the “Security
Deposit”), which sum shall be held and owned by Landlord, without obligation to pay interest, as security for the performance of Tenant’s covenants and obligations under this Lease. The Security Deposit is not an advance rental deposit
or a measure of damages incurred by Landlord in case of Tenant’s default. Upon the occurrence of any event of default by Tenant, Landlord may from time to time, without prejudice to any other remedy provided herein or by law, use such fund to
the extent necessary to credit against any arrears of Rent or other payments due to Landlord hereunder, and any other damage, injury, expense or liability caused by such event of default, and Tenant shall pay to Landlord, on demand, the amount so
applied in order to restore the Security Deposit to its original amount. Although the Security Deposit shall be deemed the property of Landlord, any remaining balance of such deposit shall be returned by Landlord to Tenant at such time after
termination of this Lease that all of Tenant’s obligations under this Lease have been fulfilled, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the payment of Rent or other obligations of
Tenant under this Lease, including any obligation to repair damage to the Premises, Building or Project caused by Tenant or any Tenant’s Parties as required pursuant to this Lease. Landlord is hereby granted a security interest in the Security
Deposit in accordance with applicable provisions of the California Commercial Code. Landlord may use and commingle the Security Deposit with other funds of Landlord. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code,
and all other provisions of any Regulations, now or hereinafter in force, which restricts the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the
handling or return of security deposits. 
  
 All of the Security Deposit shall be in the form of an irrevocable
letter of credit (the “Letter of Credit”), which Letter of Credit shall: (a) be in the amount of $903,312.00; (b) be issued on the form attached hereto as Exhibit E; (c) name Landlord as its beneficiary; and (d) be drawn on an FDIC
insured financial institution satisfactory to the Landlord. The Letter of Credit (and any renewals or replacements thereof) shall be for a term of not less than one (1) year. Tenant agrees that it shall from time to time, as necessary, whether as a
result of a draw on the Letter of Credit by Landlord pursuant to the terms hereof or as a result of the expiration of the Letter of Credit then in effect, renew or replace the original and any subsequent Letter of Credit so that a Letter of Credit,
in the amount required hereunder, is in effect until a date which is at least thirty (30) days after the Termination Date of the Lease. If Tenant fails to furnish such renewal or replacement at least forty five (45) days prior to the stated
expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) as a Security Deposit pursuant to the terms of this Section 19. Any
renewal or replacement of the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above, except that such replacement or renewal shall be issued by an FDIC insured financial
institution satisfactory to the Landlord at the time of the issuance thereof. 
  
 If Landlord draws on the Letter of
Credit as permitted in this Lease or the Letter of Credit, then, upon demand of Landlord, Tenant shall restore the amount available under the Letter of Credit to its original amount by providing Landlord with an amendment to the Letter of Credit
evidencing that the amount available under the Letter of Credit has been restored to its original amount. 
  
 20.    LIMITATION OF TENANT’S REMEDIES 
  
 The obligations and
liability of Landlord to Tenant for any default by Landlord under the terms of this Lease are not personal obligations of Landlord or of the individual or other partners of Landlord or its or their partners, directors, officers, or shareholders, and
Tenant agrees to look solely to Landlord’s interest in the Project for the recovery of any amount from Landlord, and shall not look to other assets of Landlord nor seek recourse against the assets of the individual or other partners of Landlord
or its or their partners, directors, officers or shareholders. Any lien obtained to enforce any such judgment and any levy of execution thereon shall be subject and subordinate to any 
 

 7 

 lien, mortgage or deed of trust on the Project. Under no circumstances shall Tenant have the right to offset against or recoup Rent or other
payments due and to become due to Landlord hereunder except as expressly provided in this Lease, which Rent and other payments shall be absolutely due and payable hereunder in accordance with the terms hereof. 
  
 21.    ASSIGNMENT AND SUBLETTING 
  
 A.  (1)  General.    Tenant shall not assign this Lease or sublet the Premises or any part thereof without Landlord’s
prior written consent except as provided herein. If Tenant desires to assign this Lease or sublet any or all of the Premises, Tenant shall give Landlord written notice (the “Transfer Notice”) at least sixty (60) days prior to the
anticipated effective date of the proposed assignment or sublease, which shall contain all of the information reasonably requested by Landlord to address Landlord’s decision criteria specified hereinafter. Landlord shall then have a period of
thirty (30) days following receipt of the Transfer Notice to notify Tenant in writing whether Landlord elects to consent to the proposed assignment or sublease, subject, however, to Landlord’s prior written consent of the proposed assignee or
subtenant and of any related documents or agreements associated with the assignment or sublease. If Landlord should fail to notify Tenant in writing of such election within said period, Landlord shall be deemed to have approved the proposed assignee
or subtenant. Landlord’s consent to a proposed assignment or sublease shall not be unreasonably withheld. Consent to any assignment or subletting shall not constitute consent to any subsequent transaction to which this Paragraph 21 applies.

  
 (2)  Conditions of Landlord’s Consent.    Without limiting the other
instances in which it may be reasonable for Landlord to withhold Landlord’s consent to an assignment or subletting, Landlord and Tenant acknowledge that it shall be reasonable for Landlord to withhold Landlord’s consent in the following
instances: if the proposed assignee does not agree to be bound by and assume the obligations of Tenant under this Lease in form reasonably satisfactory to Landlord; the use of the Premises by such proposed assignee or subtenant would not be a
Permitted Use; the proposed assignee or subtenant is not of sound financial condition as determined by Landlord in Landlord’s reasonable discretion. Failure by or refusal of Landlord to consent to a proposed assignee or subtenant shall not
cause a termination of this Lease. At the option of Landlord, a surrender and termination of this Lease shall operate as an assignment to Landlord of some or all subleases or subtenancies. Landlord shall exercise this option by giving notice of that
assignment to such subtenants on or before the effective date of the surrender and termination. 
  
 B.  Bonus Rent.    Any Rent or other consideration realized by Tenant under any such sublease or assignment in excess of the Rent payable hereunder, after amortization of (1) the reasonable cost
of any improvements which Tenant has made to the Premises in connection with such sublease or assignment, and (2) reasonable subletting and assignment costs, shall be divided and paid, fifty percent (50%) to Tenant, fifty percent (50%) to Landlord.
In any subletting or assignment undertaken by Tenant, Tenant shall diligently seek to obtain the maximum rental amount available in the marketplace for comparable space available for primary leasing. 
  
 C.  For purposes of this Lease, an assignment or subletting shall not include any assignment or sublease of all or any
portion of the Premises made to any entity which controls, is controlled by, or is under common control with Tenant; to any entity which results from a merger or consolidation with Tenant (including any successor corporation); to any entity engaged
in a joint venture with Tenant; or to any entity which acquires substantially all of the stock or assets of Tenant, as a going concern, with respect to the business that is being conducted in the Premises (hereinafter each a “Permitted
Transfer”). In addition, a sale or transfer of capital stock of Tenant shall be deemed a Permitted Transfer if (1) such sale or transfer occurs in connection with any bona fide financing or capitalization for the benefit of Tenant, or (2)
Tenant is a publicly traded corporation, provided Landlord is in no worse position with respect to Landlord’s economic security under this Lease. Notwithstanding anything to the contrary contained in this Lease, Landlord shall have no right of
approval or consent with respect to any Permitted Transfer, nor shall Landlord have any right to any sums or other economic consideration resulting from any Permitted Transfer. 
  
 Notwithstanding the foregoing, a transfer shall be a “Permitted Transfer” only if Landlord is in no worse a position with respect to Landlord’s economic
security under this Lease (including payment of rent). 
  
 D.  Liability.    No
assignment or subletting by Tenant, permitted or otherwise, shall relieve Tenant of any obligation under this Lease or any guarantor of this Lease of any liability under its guaranty or alter the primary liability of the Tenant named herein for the
payment of Rent or for the performance of any other obligations to be performed by Tenant, including obligations contained in Paragraph 25 with respect to any assignee or subtenant. Landlord may collect rent or other amounts or any portion thereof
from any assignee, subtenant, or other occupant of the Premises, permitted or otherwise, and apply the net rent collected to the Rent payable hereunder, but no such collection shall be deemed to be a waiver of this Paragraph 21, or the acceptance of
the assignee, subtenant or occupant as tenant, or a release of Tenant from the further performance by Tenant of the obligations of Tenant under this Lease or any guarantor of this Lease of any liability under its guaranty. Any assignment or
subletting which conflicts with the provisions hereof shall be void. 
  
 22.    AUTHORITY

  
         Landlord represents and warrants that it has full right and authority to enter into
this Lease and to perform all of Landlord’s obligations hereunder and that all persons signing this Lease on its behalf are authorized to do. Tenant represents and warrants that Tenant has full right and authority to enter into this Lease, and
to perform all of Tenant’s obligations hereunder, and that all persons signing this Lease on its behalf are authorized to do so. 
  
 23.    CONDEMNATION 
  
 A.  Condemnation Resulting in
Termination.    If the whole or any substantial part of the Premises should be taken or condemned for any public use under any Regulation, or by right of eminent domain, or by private purchase in lieu thereof, and the taking
would prevent or materially interfere with the Permitted Use of the Premises, either party shall have the right to terminate this Lease at its option. If any material portion of the Building or Project is taken or condemned for any public use under
any Regulation, or by right of eminent domain, or by private purchase in lieu thereof, Landlord may terminate this Lease at its option. In either of such events, the Rent shall be abated during the unexpired portion of this Lease, effective when the
physical taking of said Premises shall have occurred. 
  
 B.  Condemnation Not Resulting in
Termination.    If a portion of the Project of which the Premises are a part should be taken or condemned for any public use under any Regulation, or by right of eminent domain, or by private purchase in lieu thereof, and
this Lease is not terminated as provided in Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion of this Lease shall be reduced, beginning on the date when the physical taking shall have occurred, to such amount as may be
fair and reasonable under all of the circumstances. 
  
 C.  Award.    Landlord
shall be entitled to (and Tenant shall assign to Landlord) any and all payment, income, rent, award or any interest therein whatsoever which may be paid or made in connection with such taking or conveyance and Tenant shall have no claim against
Landlord or otherwise for any sums paid by virtue of such proceedings, whether or not attributable to the value of any unexpired portion of this Lease, except as expressly provided in this Lease. Notwithstanding the foregoing, any compensation
specifically and 
 

 8 

 
separately awarded Tenant for loss of business, Tenant’s personal property, the unamortized cost of any tenant improvements or alterations and moving costs, or loss of good will, shall be
and remain the property of Tenant. 
  
 D.  Waiver of CCP§1265.130.    Each
party waives the provisions of California Civil Code Procedure Section 1265.130 allowing either party to petition the superior court to terminate this Lease as a result of a partial taking. 
  
 24.    CASUALTY DAMAGE 
  
 A.  If the Premises should be damaged or destroyed by fire, tornado or other casualty, Tenant shall give immediate written notice thereof to Landlord. Within thirty (30) days of such notice, Landlord shall notify
Tenant whether in Landlord’s opinion such repairs can be made either (i) within ninety (90) days, (ii) in more than ninety (90) days but in no less than one hundred eighty (180) days, or (iii) in more than one hundred eighty (180) days from the
date of such notice. Landlord’s determination shall be binding on Tenant. If Landlord fails to complete the repairs within one hundred eighty (180) days after the date upon which Landlord is notified of such damage, such period of time to be
extended for delays caused by the fault or neglect of Tenant or because of acts of God, acts of public agencies, labor disputes, strikes, fires, freight embargoes, rainy or stormy weather, inability to obtain materials, supplies or fuels, or delay
of the contractors or subcontractors due to such causes or other contingencies beyond the control of Landlord, Tenant may at its option terminate this Lease by delivering written notice of termination to Landlord whereupon this Lease shall terminate
thirty (30) days thereafter. 
  
 B.  If the Premises should be damaged by fire, tornado or other
casualty but only to such extent that rebuilding or repairs can in Landlord’s estimation be completed within ninety (90) days after the date upon which Landlord is notified by Tenant of such damage, this Lease shall not terminate, and Landlord
shall at its sole cost and expense thereupon proceed with reasonable diligence to rebuild and repair the Premises to substantially the condition in which they existed prior to such damage, except that Landlord shall not be required to rebuild,
repair or replace any part of the partitions, fixtures, additions and other improvements which may have been placed in, on or about the Premises by Tenant. If the Premises are untenantable in whole or in part following such damage, the Rent payable
hereunder during the period in which they are untenantable shall be reduced to such extent as may be fair and reasonable under all of the circumstances. 
  
 C.  If the Premises or Building should be damaged by fire, tornado or other casualty but only to such extent that rebuilding or repairs can in Landlord’s estimation be completed
in more than ninety (90) days but in less than one hundred eighty (180) days, then Landlord shall have the option of either (i) terminating this Lease by written notice given to Tenant within thirty (30) days after the date upon which Landlord is
notified by Tenant of such damage, effective upon the date of the occurrence of such damage, in which event the Rent shall be abated during the unexpired portion of the Lease, or (ii) electing to rebuild or repair the Premises to substantially the
condition in which they existed prior to such damage except that Landlord shall not be required to rebuild, repair or replace any part of the partitions, fixtures, additions and other improvements which may have been placed in, on or about the
Premises by Tenant. If the Premises are untenantable in whole or in part following such damage, the Rent payable hereunder during the period in which they are untenantable shall be reduced to such extent as may be fair and reasonable under all of
the circumstances. In the event that Landlord should fail to complete such repairs and rebuilding within one hundred eighty (180) days after the date upon which Landlord is notified of such damage, such period of time to be extended for delays
caused by the fault or neglect of Tenant or because of acts of God, acts of public agencies, labor disputes, strikes, fires, freight embargoes, rainy or stormy weather, inability to obtain materials, supplies or fuels, or delay of the contractors or
subcontractors due to such causes or other contingencies beyond the reasonable control of Landlord, Tenant may at its option terminate this Lease by delivering thirty (30) days prior written notice of termination to Landlord as Tenant’s
exclusive remedy, whereupon all rights and obligations hereunder shall cease and terminate. 
  
 D.  If the Premises should be so damaged by fire, tornado or other casualty that rebuilding or repairs cannot in Landlord’s estimation be completed within one hundred eighty (180) days after the date upon which
Landlord is notified by Tenant of such damage, this Lease shall terminate and the Rent shall be abated during the unexpired portion of this Lease, effective upon the date of the occurrence of such damage. 
  
 E.  Tenant’s Fault.    Notwithstanding anything herein to the contrary, if the Premises
or any other portion of the Building are damaged by Casualty resulting from the fault, negligence, or breach of this Lease by Tenant or any of Tenant’s Parties, Tenant shall be liable to Landlord for the cost and expense of the repair and
restoration of the Building caused thereby to the extent such cost and expense is not covered by insurance proceeds. 
  
 F.  Insurance Proceeds.    Notwithstanding anything herein to the contrary, if the Premises or Building are damaged or destroyed and are not substantially covered by the insurance proceeds
received by Landlord such that a reasonable landlord would not fund the difference, or if the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises requires that the insurance proceeds be applied to such
indebtedness, then in either case Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days after the date of notice to Landlord that said damage or destruction is not fully
covered by insurance or such requirement is made by any such holder, as the case may be, whereupon this Lease shall terminate. 
  
 G.  Waiver.    This Paragraph 24 shall be Tenant’s sole and exclusive remedy in the event of damage or destruction to the Premises or the Building. As a material inducement to Landlord
entering into this Lease, Tenant hereby waives any rights it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil Code of California with respect to any destruction of the Premises, Landlord’s obligation for tenantability of the
Premises and Tenant’s right to make repairs and deduct the expenses of such repairs, or under any similar law, statute or ordinance now or hereafter in effect. 
  
 H.  Tenant’s Personal Property.    In the event of any damage or destruction of the Premises or the Building, under no
circumstances shall Landlord be required to repair any injury or damage to, or make any repairs to or replacements of, Tenant’s personal property. 
  
 I.  In the event Landlord chooses to rebuild under this Paragraph 24, Landlord agrees to do so without delay and complete such rebuilding in as expeditious a manner as is commercially
reasonable given the circumstances. 
  
 25.    HOLDING OVER 
  
 Unless Landlord expressly consents in writing to Tenant’s holding over, Tenant shall be unlawfully and illegally in possession of the
Premises, whether or not Landlord accepts any rent from Tenant or any other person while Tenant remains in possession of the Premises without Landlord’s written consent. If Tenant shall retain possession of the Premises or any portion thereof
without Landlord’s consent following the expiration of this Lease or sooner termination for any reason, then Tenant shall pay to Landlord for each day of such retention one hundred fifty percent (150%) of the amount of daily rental as of the
last month prior to the date of expiration or earlier termination. Tenant shall also indemnify, defend, protect and hold Landlord harmless from any loss, liability or cost, including consequential and incidental damages and reasonable
attorneys’ fees, incurred by Landlord resulting from delay by Tenant in surrendering the Premises. Acceptance of Rent by Landlord following expiration or earlier termination of this Lease, or following demand by Landlord for possession of the
Premises, shall not constitute a renewal of this Lease, and nothing contained in this Paragraph 25 shall waive Landlord’s right of reentry or any other right. Additionally, if upon expiration or earlier termination of this Lease, or following
demand by Landlord for possession of the Premises, Tenant has not fulfilled its obligation with respect to repairs and cleanup of the Premises or any other Tenant obligations as set forth in this Lease, then Landlord shall have the right to perform
any such obligations as it deems necessary 
 

 9 

 
at Tenant’s sole cost and expense, and any time required by Landlord to complete such obligations shall be considered a period of holding over and the terms of this Paragraph 25 shall apply
provided Landlord diligently undertakes to complete such work in a timely manner. The provisions of this Paragraph 25 shall survive any expiration or earlier termination of this Lease. 
  
 26.    DEFAULT 
  
 A.  Events of Default.    The occurrence of any of the following shall constitute an event of default on the part of Tenant: 
  
 (1)  Abandonment.    Abandonment or vacation of the Premises for a continuous period in excess of five (5) days. Tenant
waives any right to notice Tenant may have under Section 1951.3 of the Civil Code of the State of California, the terms of this Paragraph 26.A. being deemed such notice to Tenant as required by said Section 1951.3. 
  
 (2)  Nonpayment of Rent.    Failure to pay any installment of Rent or any other
amount due and payable hereunder upon the date when said payment is due, such failure continuing without cure by payment of the delinquent Rent and late charges or other obligations for a period of five (5) days after written notice of such failure,
provided, however, that except as otherwise expressly provided herein, Landlord shall not be required to provide such notice more than twice during any three (3)  year period of the Term, the third such non-payment in such period
constituting default for all purposes hereof without requirement of notice, as to which time is of the essence. 
  
 (3)  Other Obligations.    Failure to perform any obligation, agreement or covenant under this Lease other than those matters specified in subparagraphs (1) and (2) of this Paragraph 26.A., and in
Paragraphs 8, 16, 18 and 25, such failure continuing for fifteen (15) days after written notice of such failure, as to which time is of the essence. 
  
 (4)  General Assignment.    A general assignment by Tenant for the benefit of creditors. 
  
 (5)  Bankruptcy.    The filing of any voluntary petition in bankruptcy by Tenant, or
the filing of an involuntary petition by Tenant’s creditors, which involuntary petition remains undischarged for a period of thirty (30) days. If under applicable law, the trustee in bankruptcy or Tenant has the right to affirm this Lease and
continue to perform the obligations of Tenant hereunder, such trustee or Tenant shall, in such time period as may be permitted by the bankruptcy court having jurisdiction, cure all defaults of Tenant hereunder outstanding as of the date of the
affirmance of this Lease and provide to Landlord such adequate assurances as may be necessary to ensure Landlord of the continued performance of Tenant’s obligations under this Lease. 
  
 (6)  Receivership.    The employment of a receiver to take possession of substantially all of Tenant’s assets or
the Premises, if such appointment remains undismissed or undischarged for a period of thirty (30) days after the order therefor. 
  
 (7)  Attachment.    The attachment, execution or other judicial seizure of all or substantially all of Tenant’s assets or Tenant’s leasehold of the
Premises, if such attachment or other seizure remains undismissed or undischarged for a period of twenty (20) days after the levy thereof. 
  
 (8)  Insolvency.    The admission by Tenant in writing of its inability to pay its debts as they become due. 
  

B.  Remedies Upon Default. 
  
 (1)  Termination.     In the event of the occurrence of any event of default, Landlord shall have the right to give a written termination notice to Tenant, and on
the date specified in such notice, Tenant’s right to possession shall terminate, and this Lease shall terminate unless on or before such date all Rent in arrears and all costs and expenses incurred by or on behalf of Landlord hereunder shall
have been paid by Tenant and all other events of default of this Lease by Tenant at the time existing shall have been fully remedied to the satisfaction of Landlord. At any time after such termination, Landlord may recover possession of the Premises
or any part thereof and expel and remove therefrom Tenant and any other person occupying the same, including any subtenant or subtenants notwithstanding Landlord’s consent to any sublease, by any lawful means, and again repossess and enjoy the
Premises without prejudice to any of the remedies that Landlord may have under this Lease, or at law or equity by any reason of Tenant’s default or of such termination. Landlord hereby reserves the right, but shall not have the obligation, to
recognize the continued possession of any subtenant. The delivery or surrender to Landlord by or on behalf of Tenant of keys, entry codes, or other means to bypass security at the Premises shall not terminate this Lease. 
  
         (2)  Continuation After Default.    Even though an
event of default may have occurred, this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to possession under Paragraph 26.B.(1) hereof. Landlord shall have the remedy described in California Civil Code
Section 1951.4 (“Landlord may continue this ease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations”), or any
successor code section. Accordingly, if Landlord does not elect to terminate this Lease on account of any event of default by Tenant, Landlord may enforce all of Landlord’s rights and remedies under this Lease, including the right to recover
Rent as it becomes due. Acts of maintenance, preservation or efforts to lease the Premises or the appointment of a receiver under application of Landlord to protect Landlord’s interest under this Lease or other entry by Landlord upon the
Premises shall not constitute an election to terminate Tenant’s right to possession. 
  
 C.  Damages After Default.    Should Landlord terminate this Lease pursuant to the provisions of Paragraph 26.B.(1) hereof, Landlord shall have the rights and remedies of a Landlord provided by
Section 1951.2 of the Civil Code of the State of California, or any successor code sections. Upon such termination, in addition to any other rights and remedies to which Landlord may be entitled under applicable law or at equity, Landlord shall be
entitled to recover from Tenant: (1) the worth at the time of award of the unpaid Rent and other amounts which had been earned at the time of termination, (2) the worth at the time of award of the amount by which the unpaid Rent and other amounts
that would have been earned after the date of termination until the time of award exceeds the amount of such Rent loss that Tenant proves could have been reasonably avoided; (3) the worth at the time of award of the amount by which the unpaid Rent
and other amounts for the balance of the Term after the time of award exceeds the amount of such Rent loss that the Tenant proves could be reasonably avoided; and (4) any other amount and court costs necessary to compensate Landlord for all
detriment proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom. The “worth at the time of award” as used in (1)
and (2) above shall be computed at the Applicable Interest Rate (defined below). The “worth at the time of award” as used in (3) above shall be computed by discounting such amount at the Federal Discount Rate of the Federal Reserve Bank of
San Francisco at the time of award plus one percent (1%). If this Lease provides for any periods during the Term during which Tenant is not required to pay Base Rent or if Tenant otherwise receives a Rent concession, then upon the occurrence of an
event of default, Tenant shall owe to Landlord the full amount of such Base Rent or value of such Rent concession, plus interest at the Applicable Interest Rate, calculated from the date that such Base Rent or Rent concession would have been
payable. 
  
 D.    Late Charge.    In addition to its other remedies,
Landlord shall have the right without notice or demand to add to the amount of any payment required to be made by Tenant hereunder, and which is not paid and received by Landlord on or before the first day of each calendar month, an amount equal to
five percent (5%) of the delinquent amount for each month or portion thereof that the delinquency 
 

 10 

 
remains outstanding to compensate Landlord for the loss of the use of the amount not paid and the administrative costs caused by the delinquency, the parties agreeing that Landlord’s damage
by virtue of such delinquencies would be extremely difficult and impracticable to compute and the amount stated herein represents a reasonable estimate thereof. Any waiver by Landlord of any late charges or failure to claim the same shall not
constitute a waiver of other late charges or any other remedies available to Landlord. 
  
 E.  Remedies
Cumulative.    All of Landlord’s rights, privileges and elections or remedies are cumulative and not alternative, to the extent permitted by law and except as otherwise provided herein. 
  
 27.    LIENS 
  
 Tenant shall at all times keep the Premises and the Project free from liens arising out of or related to work or services performed, materials or supplies furnished or obligations incurred by or on
behalf of Tenant or in connection with work made, suffered or done by or on behalf of Tenant in or on the Premises or Project. If Tenant shall not, within ten (10) days following the imposition of any such lien, cause the same to be released of
record by payment or posting of a proper bond, Landlord shall have, in addition to all other remedies provided herein and by law, the right, but not the obligation, to cause the same to be released by such means as Landlord shall deem proper,
including payment of the claim giving rise to such lien. All sums paid by Landlord on behalf of Tenant and all expenses incurred by Landlord in connection therefor shall be payable to Landlord by Tenant on demand with interest at the Applicable
Interest Rate as Additional Rent. Landlord shall have the right at all times to post and keep posted on the Premises any notices permitted or required by law, or which Landlord shall deem proper, for the protection of Landlord, the Premises, the
Project and any other party having an interest therein, from mechanics’ and materialmen’s liens, and Tenant shall give Landlord not less than ten (10) business days prior written notice of the commencement of any work in the Premises or
Project which could lawfully give rise to a claim for mechanics’ or materialmen’s liens to permit Landlord to post and record a timely notice of non-responsibility, as Landlord may elect to proceed or as the law may from time to time
provide, for which purpose, if Landlord shall so determine, Landlord may enter the Premises. Tenant shall not remove any such notice posted by Landlord without Landlord’s consent, and in any event not before completion of the work which could
lawfully give rise to a claim for mechanics’ or materialmen’s liens. 
  
 28.    SUBSTITUTION

  
 INTENTIONALLY OMITTED 
  
 29.    TRANSFERS BY LANDLORD 
  
 In the
event of a sale or conveyance by Landlord of the Building or a foreclosure by any creditor of Landlord, the same shall operate to release Landlord from any liability upon any of the covenants or conditions, express or implied, herein contained in
favor of Tenant, to the extent required to be performed after the passing of title to Landlord’s successor-in-interest. In such event, Tenant agrees to look solely to the responsibility of the successor-in-interest of Landlord under this Lease
with respect to the performance of the covenants and duties of “Landlord” to be performed after the passing of title to Landlord’s successor-in-interest. This Lease shall not be affected by any such sale and Tenant agrees to attorn to
the purchaser or assignee. Landlord’s successor(s)-in-interest shall not have liability to Tenant with respect to the failure to perform any of the obligations of “Landlord,” to the extent required to be performed prior to the date
such successor(s)-in-interest became the owner of the Building. 
  
 30.    RIGHT OF LANDLORD TO
PERFORM TENANT’S COVENANTS 
  
 All covenants and agreements to be performed by Tenant under any of the terms
of this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any abatement of Rent. If Tenant shall fail to pay any sum of money, other than Base Rent, required to be paid by Tenant hereunder or shall fail to perform
any other act on Tenant’s part to be performed hereunder, including Tenant’s obligations under Paragraph 11 hereof, and such failure shall continue for fifteen (15) days after notice thereof by Landlord, in addition to the other rights and
remedies of Landlord, Landlord may make any such payment and perform any such act on Tenant’s part. In the case of an emergency, no prior notification by Landlord shall be required. Landlord may take such actions without any obligation and
without releasing Tenant from any of Tenant’s obligations. All sums so paid by Landlord and all incidental costs incurred by Landlord and interest thereon at the Applicable Interest Rate, from the date of payment by Landlord, shall be paid to
Landlord on demand as Additional Rent. 
  
 31.    WAIVER 
  
 If either Landlord or Tenant waives the performance of any term, covenant or condition contained in this Lease, such waiver shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, or constitute a course of dealing contrary to the expressed terms of this Lease. The acceptance of Rent by Landlord shall not
constitute a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, regardless of Landlord’s knowledge of such preceding breach at the time Landlord accepted such Rent. Failure by either party to enforce any
of the terms, covenants or conditions of this Lease for any length of time shall not be deemed to waive or decrease the right of said party to insist thereafter upon strict performance by the other party. Waiver by either party of any term, covenant
or condition contained in this Lease may only be made by a written document signed by said party, based upon full knowledge of the circumstances. 
  
 32.    NOTICES 
  
 Each provision of this Lease or of any
applicable governmental laws, ordinances, regulations and other requirements with reference to sending, mailing, or delivery of any notice or the making of any payment by Landlord or Tenant to the other shall be deemed to be complied with when and
if the following steps are taken: 
  
 A.  Rent.    All Rent and other payments
required to be made by Tenant to Landlord hereunder shall be payable to Landlord at Landlord’s Remittance Address set forth in the Basic Lease Information, or at such other address as Landlord may specify from time to time by written notice
delivered in accordance herewith. Tenant’s obligation to pay Rent and any other amounts to Landlord under the terms of this Lease shall not be deemed satisfied until such Rent and other amounts have been actually received by Landlord.

  
 B.  Other.    All notices, demands, consents and approvals which may or are
required to be given by either party to the other hereunder shall be in writing and either personally delivered, sent by commercial overnight courier, mailed, certified or registered, postage prepaid or sent by facsimile with confirmed receipt (and
with an original sent by commercial overnight courier), and in each case addressed to the party to be notified at the Notice Address for such party as specified in the Basic Lease Information or to such other place as the party to be notified may
from time to time designate. Notices shall be deemed served upon receipt or refusal to accept delivery. Tenant appoints as its agent to receive the service of all default notices and notice of commencement of unlawful detainer proceedings the person
in charge of or apparently in charge of occupying the Premises at the time, and, if there is no such person, then such service may be made by attaching the same on the main entrance of the Premises. 
  
 C.  Required Notices.    Tenant shall immediately notify Landlord in writing of any notice of a
violation or a potential or alleged violation of any Regulation that relates to the Premises or the Project, or of any inquiry, investigation, enforcement or other action that is 
 

 11 

 
instituted or threatened by any governmental or regulatory agency against Tenant or any other occupant of the Premises, or any claim that is instituted or threatened by any third party that
relates to the Premises or the Project. 
  
 33.    ATTORNEYS’ FEES 
  
 If either party places the enforcement of this Lease, or any part thereof, or the collection of any Rent due, or to become due hereunder,
or recovery of possession of the Premises in the hands of an attorney or files suit upon the same, the prevailing party shall recover its reasonable attorneys’ fees and court costs, whether incurred at trial, appeal or review. 

 
 34.    SUCCESSORS AND ASSIGNS 
  
 This Lease shall be binding upon and inure to the benefit of Landlord, its successors and assigns, and shall be binding upon and inure to the benefit of Tenant, its
successors, and to the extent assignment is permitted hereunder, Tenant’s assigns. 
  
 35.    FORCE MAJEURE 
  
 If performance by a party of any portion of this
Lease is made impossible by any prevention, delay, or stoppage caused by strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes for those items, government actions, civil
commotions, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, performance by that party for a period equal to the period of that prevention, delay, or stoppage is excused. Tenant’s
obligation to pay Rent, however, is not excused by this Paragraph 35. Whenever a period of time is herein prescribed for action as to non-monetary obligations to be taken by Tenant, Tenant shall not be liable or responsible for, and there shall be
excluded from the computation for any such period of time, any delays due to strike, riots, acts of God, shortages of labor or materials, war, governmental laws, regulations or restrictions or any other causes of any kind whatsoever which are beyond
the control of Tenant. 
  
 36.    SURRENDER OF PREMISES 
  
 Tenant shall, upon expiration or sooner termination of this Lease, surrender the Premises to Landlord in the same condition as existed on
the date Tenant originally took possession thereof, normal wear and tear excepted, with all HVAC equipment in operating order and in good repair. Tenant shall remove all of its debris from the Project. At or before the time of surrender, Tenant
shall comply with the terms of Paragraph 12.A. hereof with respect to Alterations to the Premises and all other matters addressed in such Paragraph. If the Premises are not so surrendered at the expiration or sooner termination of this Lease, the
provisions of Paragraph 25 hereof shall apply. All keys to the Premises or any part thereof shall be surrendered to Landlord upon expiration or sooner termination of the Term. Tenant shall give written notice to Landlord at least thirty (30) days
prior to vacating the Premises and shall meet with Landlord for a joint inspection of the Premises at the time of vacating, but nothing contained herein shall be construed as an extension of the Term or as a consent by Landlord to any holding over
by Tenant. 
  
 37.    HAZARDOUS MATERIALS 
  

A.  General Restrictions.    Tenant shall conduct its business and shall cause each Tenant Party to act in such a manner as to (a)
not release or permit the release of any Hazardous Material in, under, on or about the Premises or Project, or (b) not use, store, generate, treat, discharge, disperse, handle, manufacture, transport or dispose of (collectively, “Handle”)
any Hazardous Materials (other than incidental amounts of customary cleaning and office supplies) in or about the Premises or Project except in each case in compliance with all applicable laws. “Hazardous Material” means any hazardous,
explosive, radioactive or toxic substance, material or waste which is or becomes regulated by any local, state or federal governmental authority or agency, including, without limitation, any material or substance which is (i) defined or listed as a
“hazardous waste,” “extremely hazardous waste,” “restricted hazardous waste,” “hazardous substance,” “hazardous material,” “pollutant” or “contaminant” under any Regulation, (ii)
petroleum or petroleum derivative, (iii) a flammable explosive, (iv) a radioactive material or waste, (v) a polychlorinated biphenyl, (vi) asbestos or asbestos containing material, (vii) infectious waste, or (viii) a carcinogen. 

 
 B.  Required Disclosures.    Prior to Tenant (and at least five (5) days prior to any
assignee or any subtenant of Tenant) taking possession of any part of the Premises, Tenant (or such subtenant or assignee, as the case may be) shall deliver to Landlord a completed “Hazardous Materials Questionnaire”, in the form attached
hereto as Exhibit D. Tenant (and any subtenant or assignee of Tenant) shall provided Landlord with copies of (i) its Hazardous Materials Management Plan (“HMPP”) for its operations at the Premises, which shall
include a description of the types and quantities of Hazardous Materials used and/or stored on the Premises; and (ii) copies of all other similar documents related to Hazardous Materials which Tenant (or any subtenant or assignee of Tenant) has
submitted or may submit to the City of Hayward, California, or any other regulatory agencies in connection with its use of the Premises, including any revisions or updated to its HMPP. Tenant represents that its HMPP currently complies with all
applicable laws. 
  
         C.  Additional Obligations.    If
any Hazardous Materials shall be released into the environment comprising or surrounding the Project as the result of the acts, omissions or operations of Tenant or any Tenant Party, Tenant shall at its sole expense promptly prepare a remediation
plan therefor consistent with applicable Regulations and recommended industry practices (and approved by Landlord and all governmental agencies having jurisdiction) to fully remediate such release, and thereafter shall prosecute the remediation plan
so approved to completion with all reasonable diligence and to the satisfaction of applicable governmental agencies. If Landlord determines in good faith that any release of any Hazardous Material or violation of Hazardous Materials Regulations may
have occurred in, on, under or about the Premises during the Term, Landlord may require Tenant to at Tenant’s sole expense, (i) retain a qualified environmental consultant reasonably satisfactory to Landlord to conduct a reasonable
investigation (an “Environmental Assessment”) of a nature and scope reasonably approved in writing in advance by Landlord with respect to the existence of any Hazardous Materials in, on, under or about the Premises and providing a review
of all Hazardous Materials activities of Tenant and the Tenant Parties, and (ii) provide to Landlord a reasonably detailed, written report, prepared in accordance with the institutional real estate standards, of the Environmental Assessment.

  
 D.  Indemnity.    Tenant shall indemnify, defend (by counsel reasonably
acceptable to Landlord), protect and hold Landlord harmless from and against any and all claims, liabilities, losses, costs, loss of rents, liens, damages, injuries or expenses (including attorneys’ and consultants’ fees and court costs),
demands, causes of action, or judgments directly or indirectly arising out of or related to the use, generation, storage, release, or disposal of Hazardous Materials by Tenant or any of Tenant’s Parties in, on, under or about the Premises, the
Building or the Project or surrounding land or environment, which indemnity shall include, without limitation, damages for personal or bodily injury, property damage, damage to the environment or natural resources occurring on or off the Premises,
losses attributable to diminution in value or adverse effects on marketability, the cost of any investigation, monitoring, government oversight, repair, removal, remediation, restoration, abatement, and disposal, and the preparation of any closure
or other required plans, whether such action is required or necessary prior to or following the expiration or earlier termination of this Lease. Neither the consent by Landlord to the use, generation, storage, release or disposal of Hazardous
Materials nor the strict compliance by Tenant with all laws pertaining to Hazardous Materials shall excuse Tenant from Tenant’s obligation of indemnification pursuant to this Paragraph 37.D. Tenant’s obligations pursuant to the foregoing
indemnity shall survive the expiration or earlier termination of this Lease. 
 

 12 

  
 38 MISCELLANEOUS 
  
 A.  General.    The term “Tenant” or any pronoun used in place thereof shall indicate and include the masculine or feminine,
the singular or plural number, individuals, firms or corporations, and their respective successors, executors, administrators and permitted assigns, according to the context hereof. 
  
 B.  Time.    Time is of the essence regarding this Lease and all of its provisions. C. Choice of Law. This Lease shall in all respects
be governed by the laws of the State of California. 
  
 C.  Choice of
Law.    This lease shall in all respects be governed by the laws of the State of California. 
  
 D.  Entire Agreement.    This Lease, together with its Exhibits, addenda and attachments and the Basic Lease Information, contains all the agreements of the parties hereto and supersedes any
previous negotiations. There have been no representations made by the Landlord or understandings made between the parties other than those set forth in this Lease and its Exhibits, addenda and attachments and the Basic Lease Information.

  
 E.  Modification.    This Lease may not be modified except by a written
instrument signed by the parties hereto. Both parties accept the area of the Premises as specified in the Basic Lease Information as the approximate area of the Premises for all purposes under this Lease, and acknowledges and agrees that no other
definition of the area (rentable, usable or otherwise) of the Premises shall apply. Neither party shall in any event be entitled to a recalculation of the square footage of the Premises, rentable, usable or otherwise. 
  
 F.  Severability.    If, for any reason whatsoever, any of the provisions hereof shall be
unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect. 
  
 G.  Recordation.    Tenant shall not record this Lease or a short form memorandum hereof. 
  
 H.  Examination of Lease.    Submission of this Lease to Tenant does not constitute an option or offer to lease and this Lease is not effective otherwise until
execution and delivery by both Landlord and Tenant. 
  
 I.  Accord and
Satisfaction.    No payment by Tenant of a lesser amount than the total Rent due nor any endorsement on any check or letter accompanying any check or payment of Rent shall be deemed an accord and satisfaction of full payment
of Rent, and Landlord may accept such payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue other remedies. All offers by or on behalf of Tenant of accord and satisfaction are hereby rejected in advance.

  
 J.  Easements.    Landlord may grant easements on the Project and dedicate
for public use portions of the Project without Tenant’s consent; provided that no such grant or dedication shall materially interfere with Tenant’s Permitted Use of the Premises. Upon Landlord’s request, Tenant shall execute,
acknowledge and deliver to Landlord documents, instruments, maps and plats necessary to effectuate Tenant’s covenants hereunder. 
  
 K.  Drafting and Determination Presumption.    The parties acknowledge that this Lease has been agreed to by both the parties, that both Landlord and Tenant have consulted with attorneys
with respect to the terms of this Lease and that no presumption shall be created against Landlord because Landlord drafted this Lease. Except as otherwise specifically set forth in this Lease, with respect to any consent, determination or estimation
of Landlord required or allowed in this Lease or requested of Landlord, Landlord’s consent, determination or estimation shall be given or made solely by Landlord in Landlord’s good faith opinion, and not unreasonably withheld or delayed.
If Landlord fails to respond to any request for its consent within the time period, if any, specified in this Lease, Landlord shall be deemed to have disapproved such request, unless this Lease provides otherwise. 
  
 L.  Exhibits.    The Basic Lease Information, and the Exhibits, addenda and attachments attached
hereto are hereby incorporated herein by this reference and made a part of this Lease as though fully set forth herein. 
  
 M.  No Light, Air or View Easement.    Any diminution or shutting off of light, air or view by any structure which may be erected on lands adjacent to or in the vicinity of the Building shall in
no way affect this Lease or impose any liability on Landlord. 
  
 N.  No Third Party
Benefit.    This Lease is a contract between Landlord and Tenant and nothing herein is intended to create any third party benefit. 
  
 O.  Quiet Enjoyment.    Upon payment by Tenant of the Rent, and upon the observance and performance of all of the other covenants, terms and conditions on
Tenant’s part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming
by, through or under Landlord, subject, nevertheless, to all of the other terms and conditions of this Lease. 
  
 P.  Counterparts.    This Lease may be executed in any number of counterparts, each of which shall be deemed an original. 
  
 Q.  Multiple Parties.    If more than one person or entity is named herein as Tenant, such multiple parties shall have joint and
several responsibility to comply with the terms of this Lease. 
  
 R.  Prorations.    Any Rent or other amounts payable to Landlord by Tenant hereunder for any fractional month shall be prorated based on a calendar month. As used herein, the term “fiscal
year” shall mean the calendar year or such other fiscal year as Landlord may deem appropriate. 
  
 S.  Brokerage Disclosure.    Tenant shall indemnify and hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, and agents harmless from all
claims of any other brokers claiming to have represented Tenant in connection with this Lease other than CRESA Partners (“Broker”). Landlord agrees to indemnify and hold Tenant harmless from all claims of any brokers claiming to have
represented Landlord in connection with this Lease. Equity Office Properties Management Corp. (“EOPMC”) is an affiliate of Landlord and represents only the Landlord in this transaction. Any assistance rendered by any agent or employee of
EOPMC in connection with this Lease or any subsequent amendment or modification hereto has been or will be made as an accommodation to Tenant solely in furtherance of consummating the transaction on behalf of Landlord, and not as agent for Tenant.
Landlord agrees to pay a brokerage commission to Broker in accordance with the terms of a separate written commission agreement to be entered into between Landlord and Broker, provided that in no event shall Landlord be obligated to pay a commission
to Broker in connection with any extension of the Term or in connection with any additional space that is leased by Tenant pursuant to the terms of this Lease except as may be specifically provided otherwise in such written agreement or future
written agreement between Landlord and Broker. 
 

 13 

  
 39.    ADDITIONAL PROVISIONS 
  
 A.    Renewal Option. 
  
 1.  Grant of Option; Conditions.    Tenant shall have the right to extend the Term (the “Renewal Option”) for one additional period of 5 years commencing on the day following
the Termination Date of the initial Term and ending on the 5th anniversary of the Termination Date (the “Renewal Term”), if: 
  
 a.  Landlord receives notice of exercise (“Initial Renewal Notice”) not less than 12 full calendar months prior to the expiration of the initial Term and not more than 24 full
calendar months prior to the expiration of the initial Term; and 
  
 b.  Tenant is not in
default under the Lease beyond any applicable cure periods at the time that Tenant delivers its Initial Renewal Notice or at the time Tenant delivers its Binding Notice (as defined below); and 
  

c.  The Lease has not been assigned (other than pursuant to a Permitted Transfer, as defined in Article 21 of the Lease) prior to the date
that Tenant delivers its Initial Renewal Notice or prior to the date Tenant delivers its Binding Notice. 
  
 2.  Terms Applicable to Premises During Renewal Term. 
  
 a.  The initial Base Rent rate per rentable square foot for the Premises during the Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per rentable square foot for the Premises. Base Rent during the
Renewal Term shall increase, if at all, in accordance with the increases assumed in the determination of Prevailing Market rate. Base Rent attributable to the Premises shall be payable in monthly installments in accordance with the terms and
conditions of Article 6 of the Lease. 
  
 3.  Tenant shall pay Additional Rent (i.e. Operating Expenses)
for the Premises during the Renewal Term in accordance with Article 6 of the Lease, and the manner and method in which Tenant reimburses Landlord for Tenant’s Proportionate Share of Operating Expenses applicable to such matter, shall be some of
the factors considered in determining the Prevailing Market rate for the Renewal Term. 
  
 4.  Procedure
for Determining Prevailing Market.    Within 30 days after receipt of Tenant’s Initial Renewal Notice, Landlord shall advise Tenant of the applicable Base Rent rate for the Premises for the Renewal Term. Tenant, within
15 days after the date on which Landlord advises Tenant of the applicable Base Rent rate for the Renewal Term, shall either (i) give Landlord final binding written notice (“Binding Notice”) of Tenant’s exercise of its Renewal Option,
or (ii) if Tenant disagrees with Landlord’s determination, provide Landlord with written notice of rejection (the “Rejection Notice”). If Tenant fails to provide Landlord with either a Binding Notice or Rejection Notice within such 15
day period, Tenant’s Renewal Option shall be null and void and of no further force and effect. If Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined below) upon the terms and
conditions set forth herein. If Tenant provides Landlord with a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the Prevailing Market rate for the Premises during the Renewal Term. When Landlord and Tenant have
agreed upon the Prevailing Market rate for the Premises, such agreement shall be reflected in a written agreement between Landlord and Tenant, whether in a letter or otherwise, and Landlord and Tenant shall enter into the Renewal Amendment in
accordance with the terms and conditions hereof. Notwithstanding the foregoing, if Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Premises within 30 days after the date Tenant provides Landlord with the Rejection
Notice, Tenant’s Renewal Option shall be deemed to be null and void and of no force and effect. 
  
 If Tenant
and Landlord are unable to agree on a mutually acceptable rental rate for any such increase period within thirty (30) days after notification by Landlord to Tenant of Landlord’s determination of the new Base Rent for the applicable increase
period, but in any event no later than the date which is ninety (90) days prior to the expiration of the 115th month of the Term, then on or before such date Landlord and Tenant shall each appoint a licensed real estate broker with at least ten (10)
year’s experience in leasing industrial space in the area in which the Building is located to act as arbitrators. The two (2) arbitrators so appointed shall determine the fair market rental value for the Premises for the applicable increase
period based on the above criteria and each shall submit his or her determination of such fair market rental value to Landlord and Tenant in writing, within sixty (60) days after their appointment. 
  
 If the two (2) arbitrators so appointed cannot agree on the fair market rental value for the applicable increase period within such 60-day
period, the two (2) arbitrators shall within five (5) days thereafter appoint a third arbitrator who shall be a licensed real estate broker with at least ten (10) year’s experience in leasing industrial space in the area in which the Building
is located. The third arbitrator so appointed shall independently determine the fair market rental value for the Premises for the applicable increase period within thirty (30) days after appointment, by selecting from the proposals submitted by each
of the first two arbitrators the one that most closely approximates the third arbitrator’s determination of such fair market rental value. The third arbitrator shall have no right to adopt a compromise or middle ground or any modification of
either of the proposals submitted by the first two arbitrators. The proposal chosen by the third arbitrator as most closely approximating the third arbitrator’s determination of the fair market rental value for the applicable increase period
shall constitute the decision and award of the arbitrators and shall be final and binding on the parties. 
  
 Each
party shall pay the fees and expenses of the arbitrator appointed by such party and one-half (1/2) of the fees and expenses of the third arbitrator. 
  
 If either party fails to appoint an arbitrator, or if either of the first two arbitrators fails to submit his or her proposal of fair market rental value to the other party, in each case within the
time periods set forth above, then the decision of the other party’s arbitrator shall be considered final and binding. 
  
 5.  Renewal Amendment.    If Tenant is entitled to and properly exercises its Renewal Option, Landlord shall prepare an amendment (the “Renewal Amendment”) to reflect changes in the Base
Rent, Term, Termination Date and other appropriate terms. The Renewal Amendment shall be sent to Tenant within a reasonable time after Landlord’s receipt of the Binding Notice or other written agreement by Landlord and Tenant regarding the
Prevailing Market rate, and Tenant shall execute and return the Renewal Amendment to Landlord within 15 days after Tenant’s receipt of same, but, upon final determination of the Prevailing Market rate applicable during the Renewal Term as
described herein, an otherwise valid exercise of the Renewal Option shall be fully effective whether or not the Renewal Amendment is 
 

 14 

 executed. Within a reasonable time after Landlord’s receipt of the copies of the Renewal Amendment executed by Tenant, Landlord shall
execute the same provided Tenant has made no modifications to the Renewal Amendment which have not been agreed to by Landlord. 
  
 6.  Definition of Prevailing Market.    For purposes of this Renewal Option, “Prevailing Market” shall mean the arms length fair market annual rental rate per rentable square foot under
renewal leases and amendments entered into on or about the date on which the Prevailing Market is being determined hereunder for space comparable to the Premises in the Building and other buildings comparable to the Building in the Hayward,
California area. The determination of Prevailing Market shall take into account any material economic differences between the terms of this Lease and any comparison lease or amendment, such as rent abatements, construction costs and other
concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes; provided, however, the value of any Alterations made to the Premises and paid for solely by Tenant shall not be considered
when determining the Prevailing Market rate for the Premises. The determination of Prevailing Market shall also take into consideration any reasonably anticipated changes in the Prevailing Market rate from the time such Prevailing Market rate is
being determined and the time such Prevailing Market rate will become effective under this Lease. 
  
 B.    Monument
Signage. 
  
 1.  During the initial Term and any extension thereof, Tenant, at Tenant’s sole cost,
but subject to governmental approval, shall have the right to maintain its existing (as of the date of this Lease) sign on the monument sign located at the main entrance to the Building (the “Existing Monument Sign”). Landlord shall have
the right to require that all names on the Existing Monument Sign be of the same size and style. Tenant’s right to place its name on the Existing Monument Sign, and the location of Tenant’s name on the Existing Monument Sign, shall be
subject to the existing rights of existing tenants in the Project. Although the Existing Monument Sign will be maintained by Landlord, Tenant shall pay its proportionate share of the cost of any maintenance and repair associated with the Existing
Monument Sign. 
  
 2.  Upon expiration or earlier termination of this Lease or Tenant’s right to
possession of the Premises, Landlord shall have the right to remove Tenant’s name from the Existing Monument Sign, at Tenant’s cost, payable as Additional Rent within thirty (30) days after demand therefor, or if Tenant fails to remove the
sign or its name, as required, within 30 days after written request from Landlord, then Landlord may remove such signage and Tenant shall pay Landlord all costs related thereto, as Additional Rent, within 30 days after demand therefor. 

 
 40.    JURY TRIAL WAIVER 
  
 EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR HEIR OR PERSONAL REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY JURY, AND HEREBY
FURTHER WAIVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL JURISDICTION OF THE COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN ANY ACTION OR PROCEEDING OR COUNTERCLAIM BROUGHT
BY ANY PARTY HERETO AGAINST THE OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, OR ANY CLAIM OF INJURY OR DAMAGE, OR THE
ENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS LEASE OR ON TORT LAW. EACH PARTY REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL CONCERNING THE EFFECT OF
THIS PARAGRAPH 40. THE PROVISIONS OF THIS PARAGRAPH 40 SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS LEASE. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and the year first above written. 
  
 
	 LANDLORD
 	 	  	 	 TENANT
 
	 
	 EOP-INDUSTRIAL PORTFOLIO, L.L.C., a Delaware limited liability company
 	 	  	 	 KOSAN BIOSCIENCES INCORPORATED, a Delaware corporation
 
	 
	 By:
 	 	 EOP Operating Limited Partnership, a Delaware limited partnership, its sole member     
 	 	  	 	 By:
 	 	 /s/    MICHAEL S. OSTRACH        
 

	  	 	  	 	  	 	 Name:
 	 	 Michael S. Ostrach
 

	  	 	  	 	  	 	 Its:
 	 	 President
 

	 By:
 	 	 Equity Office Properties Trust, a Maryland real estate investment trust, its general partner
 	 	  	 	  
	 
	 By:
 	 	 /s/    MARK GEISREITER        
 
	 	  	 	 By:
 	 	 /s/    SUSAN M. KANAYA
      
 

	 Name:
 	 	 Mark Geisreiter        
 
	 	  	 	 Name
 	 	 Susan M. Kanaya       
 

	 Its:
 	 	 Senior Vice President
 
	 	  	 	 Its:
 	 	 SVP, Finance and CFO
 

 
  
 

 15 

  
 EXHIBIT A 
  
 Industrial Lease 
 Rules and Regulations 
  
 1.  Driveways, sidewalks, halls, passages, exits, entrances, elevators, escalators and stairways shall not be obstructed by
tenants or used by tenants for any purpose other than for ingress to and egress from their respective premises. The driveways, sidewalks, halls, passages, exits, entrances, elevators and stairways are not for the use of the general public and
Landlord shall in all cases retain the right to control and prevent access thereto by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character, reputation and interests of the Building, the Project and
its tenants, provided that nothing herein contained shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary course of such tenant’s business unless such persons are engaged in illegal activities.
No tenant, and no employees or invitees of any tenant, shall go upon the roof of any Building, except as authorized by Landlord. 
  
 2.  All approved signs or lettering on doors and walls shall be printed, painted, affixed or inscribed at the expense of Tenant by a person or vendor approved by Landlord and shall be removed by Tenant at the time of
vacancy at Tenant’s expense. 
  
 3.  The directory of the Building or Project will be provided
exclusively for the display of the name and location of tenants only and Landlord reserves the right to charge for the use thereof and to exclude any other names therefrom. 
  
 4.  Landlord and its agents shall not be liable for damages for any error concerning the admission to, or exclusion from, the Building or the Project of any
person. 
  
 5.  Tenant shall not alter any lock or access device or install a new or additional lock or
access device or bolt on any door of its Premises, without the prior written consent of Landlord. If Landlord shall give its consent, Tenant shall in each case furnish Landlord with a key for any such lock. Tenant, upon the termination of its
tenancy, shall deliver to Landlord the keys for all doors which have been furnished to Tenant, and in the event of loss of any keys so furnished, shall pay Landlord therefor. 
  
 6.  The restrooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no
foreign substance of any kind whatsoever shall be thrown into them. The expense of any breakage, stoppage, or damage resulting from violation of this rule shall be borne by the tenant who, or whose employees or invitees, shall have caused the
breakage, stoppage, or damage. 
  
 7.  Tenant shall not use or keep in or on the Premises, the Building or
the Project any kerosene, gasoline, or inflammable or combustible fluid or material except in strict accordance with the terms of the Lease. 
  
 8. Tenant shall not allow the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors and/or vibrations or
interfere in any way with other tenants or those having business therein, nor shall any animals or birds be brought or kept in or about the Premises, the Building, or the Project. 
  
 9.  Except with the prior written consent of Landlord, Tenant shall not sell, or permit the sale, at retail, of newspapers, magazines, periodicals, theater
tickets or any other goods or merchandise in or on the Premises, nor shall Tenant carry on, or permit or allow any employee or other person to carry on, the business of stenography, typewriting or any similar business in or from the Premises for the
service or accommodation of occupants of any other portion of the Building, or the business of a public barber shop, beauty parlor, nor shall the Premises be used for any illegal, improper, immoral or objectionable purpose, or any business or
activity other than that specifically provided for in such Tenant’s Lease. Tenant shall not accept hairstyling, barbering, shoeshine, nail, massage or similar services in the Premises or common areas except as authorized by Landlord.

  
 10.  Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or any other
device on the exterior walls or the roof of the Building, without Landlord’s consent. Tenant shall not interfere with radio or television broadcasting or reception from or in the Building, the Project or elsewhere. 
  
 11.  Tenant shall not place a load upon any floor of its Premises which exceeds the load per square foot which such floor was
designed to carry or which is allowed by law. 
  
 12.  Each tenant shall store all its trash and garbage
within the interior of the Premises or as otherwise directed by Landlord from time to time. Tenant shall not place in the trash boxes or receptacles any personal trash or any material that may not or cannot be disposed of in the ordinary and
customary manner of removing and disposing of trash and garbage in the city, without violation of any law or ordinance governing such disposal. 
  
 13.  Canvassing, soliciting, distribution of handbills or any other written material and peddling in the Building and the Project are prohibited and each tenant shall cooperate to prevent the
same. No tenant shall make room-to-room solicitation of business from other tenants in the Building or the Project, without the written consent of Landlord. 
  
 14.  Landlord shall have the right, exercisable without notice and without liability to any tenant, to change the name and address of the Building and the Project. 
  
 15.  Landlord reserves the right to exclude or expel from the Project any person who, in Landlord’s judgment, is under the
influence of alcohol or drugs or who commits any act in violation of any of these Rules and Regulations. 
  
 16.  Without the prior written consent of Landlord, Tenant shall not use the name of the Building or the Project or any photograph or other likeness of the Building or the Project in connection with, or in promoting or
advertising, Tenant’s business except that Tenant may include the Building’s or Project’s name in Tenant’s address. 
  
 17.  Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency. 
  
 18.  Tenant assumes any and all responsibility for protecting its Premises from theft, robbery and pilferage, which includes keeping doors locked and other means
of entry to the Premises closed. 
  
 19.  Landlord reserves the right to designate the use of the parking
spaces on the Project. Tenant or Tenant’s guests shall park between designated parking lines only, and shall not occupy two parking spaces with one car. No truck tractors, trailers or fifth wheel are allowed to be parked anywhere at any time
within the Project other than in Tenant’s own truck dock well. Vehicles in violation of the above shall be subject to tow-away, at vehicle owner’s expense. No tenant of the Building shall park in visitor or reserved parking areas or
loading areas. Any tenant found parking in such designated visitor or reserved parking areas or loading areas or unauthorized areas shall be subject to tow-away at vehicle owner’s expense. The parking areas shall not be used to provide car
wash, oil changes, detailing, 
 

 1 

  
 automotive repair or other services unless otherwise approved or furnished by Landlord. Tenant will from
time to time, upon the request of Landlord, supply Landlord with a list of license plate numbers of vehicles owned or operated by its employees or agents. 
  
 20.  No Tenant is allowed to unload, unpack, pack or in any way manipulate any products, materials or goods in the common areas of the Project including the parking and driveway areas of the
Project. All products, goods and materials must be manipulated, handled, kept, and stored within the Tenant’s Premises and not in any exterior areas, including, but not limited to, exterior dock platforms, against the exterior of the Building,
parking areas and driveway areas of the Project. Tenant also agrees to keep the exterior of the Premises clean and free of nails, wood, pallets, packing materials, barrels and any other debris produced from their operation. All products, materials
and goods are to enter and exit the Premises by being loaded or unloaded through dock high doors into trucks and or trailers, over dock high loading platforms into trucks and or trailers or loaded or unloaded into trucks and or trailers within the
Premises through grade level door access. 
  
 21.  Tenant shall be responsible for the observance of all of
the foregoing Rules and Regulations by Tenant’s employees, agents, clients, customers, invitees and guests. 
  
 22.  These Rules and Regulations are in addition to, and shall not be construed to in any way modify, alter or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the
Project. In the event of any conflict between these rules and the provisions of the Lease, the provisions of the Lease shall control. 
  
 23.  Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and
Regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all tenants of the Building. 
  
 Landlord reserves the right to make such other and reasonable non-discriminatory rules and regulations as in its judgment may from time to time be needed for safety and security, for care and
cleanliness of the Building and the Project and for the preservation of good order therein. Tenant agrees to abide by all such Rules and Regulations herein stated and any additional rules and regulations which are adopted. 
 

 2 

  
 EXHIBIT B 
  
 SITE PLAN, PROPERTY DESCRIPTION 
 

 1 

  
 EXHIBIT C 
  
 LEASE IMPROVEMENT AGREEMENT 
  
 This
Exhibit is attached to and made a part of the Lease, by and between EOP-INDUSTRIAL PORTFOLIO, L.L.C., a Delaware limited liability company (“Landlord”) and KOSAN BIOSCIENCES INCORPORATED, a Delaware corporation
(“Tenant”) for space in the Building located at 3832 Bay Center Place, Hayward, California. 
  
 As used in
this Work Letter, the “Premises” shall be deemed to mean the Premises, as initially defined in the attached Lease. 
  
 I.    Alterations and Allowance. 
  
 A.  Tenant, following the
delivery of the Premises by Landlord and the full and final execution and delivery of the Lease to which this Exhibit is attached and all prepaid rental and security deposits required under such agreement, shall have the right to perform alterations
and improvements in the Premises (the “Initial Alterations”). Notwithstanding the foregoing, Tenant and its contractors shall not have the right to perform Initial Alterations in the Premises unless and until Tenant has complied with all
of the terms and conditions of Article 12 of the Lease, including, without limitation, approval by Landlord of the final plans for the Initial Alterations and the contractors to be retained by Tenant to perform such Initial Alterations. Tenant shall
be responsible for all elements of the design of Tenant’s plans (including, without limitation, compliance with law, functionality of design, the structural integrity of the design, the configuration of the premises and the placement of
Tenant’s furniture, appliances and equipment), and Landlord’s approval of Tenant’s plans shall in no event relieve Tenant of the responsibility for such design. Landlord’s approval of the contractors to perform the Initial
Alterations shall not be unreasonably withheld. The parties agree that Landlord’s approval of the general contractor to perform the Initial Alterations shall not be considered to be unreasonably withheld if any such general contractor (i) does
not have trade references reasonably acceptable to Landlord, (ii) does not maintain insurance as required pursuant to the terms of this Lease, (iii) does not have the ability to be bonded for the work in an amount of no less than 150% of the total
estimated cost of the Initial Alterations, (iv) does not provide current financial statements reasonably acceptable to Landlord, or (v) is not licensed as a contractor in the state/municipality in which the Premises is located. Tenant acknowledges
the foregoing is not intended to be an exclusive list of the reasons why Landlord may reasonably withhold its consent to a general contractor. 
  
 B.    Provided Tenant is not in default, Landlord agrees to contribute the sum of $5,000.00 (the “Allowance”) toward the cost of performing the Initial Alterations in
preparation of Tenant’s occupancy of the Premises. The Allowance may only be used for hard costs in connection with the Initial Alterations. The Allowance shall be paid to Tenant or, at Landlord’s option, to the order of the general
contractor that performed the Initial Alterations, within 30 days following receipt by Landlord of (1) receipted bills covering all labor and materials expended and used in the Initial Alterations; (2) a sworn contractor’s affidavit from the
general contractor and a request to disburse from Tenant containing an approval by Tenant of the work done; (3) full and final waivers of lien; (4) as-built plans of the Initial Alterations; and (5) the certification of Tenant and its architect that
the Initial Alterations have been installed in a good and workmanlike manner in accordance with the approved plans, and in accordance with applicable laws, codes and ordinances. The Allowance shall be disbursed in the amount reflected on the
receipted bills meeting the requirements above. Notwithstanding anything herein to the contrary, Landlord shall not be obligated to disburse any portion of the Allowance during the continuance of an uncured default under the Lease, and
Landlord’s obligation to disburse shall only resume when and if such default is cured. 
  
 C.  In no
event shall the Allowance be used for the purchase of equipment, furniture or other items of personal property of Tenant. If Tenant does not submit a request for payment of the entire Allowance to Landlord in accordance with the provisions contained
in this Exhibit by December 31, 2004, any unused amount shall accrue to the sole benefit of Landlord, it being understood that Tenant shall not be entitled to any credit, abatement or other concession in connection therewith. Tenant shall be
responsible for all applicable state sales or use taxes, if any, payable in connection with the Initial Alterations and/or Allowance 
  
 D.  Tenant agrees to accept the Premises in its “as-is” condition and configuration, it being agreed that Landlord shall not be required to perform any work or, except as provided above with respect to
the Allowance, incur any costs in connection with the construction or demolition of any improvements in the Premises. 
  
 E.  This Exhibit shall not be deemed applicable to any additional space added to the Premises at any time or from time to time, whether by any options under the Lease or otherwise, or to any portion of the original Premises
or any additions to the Premises in the event of a renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease.

 

 1 

  
 EXHIBIT D 
  
 HAZARDOUS MATERIALS QUESTIONNAIRE 
  
 This questionnaire is designed to solicit information regarding Tenant’s proposed use, generation, treatment, storage, transfer or disposal of hazardous or toxic materials, substances or wastes. If this Questionnaire is attached
to or provided in connection with a lease, the reference herein to any such items shall include all items defined as “Hazardous Materials,” “Hazardous Substances,” “Hazardous Wastes,” “Toxic Materials,”
“Toxic Substances, “Toxic Wastes,” or such similar definitions contained in the lease. Please complete the questionnaire and return it to Landlord for evaluation. If your use of materials or substances, or generation of wastes is
considered to be significant, further information may be requested regarding your plans for hazardous and toxic materials management. Your cooperation in this matter is appreciated. If you have any questions, do not hesitate to call us for
assistance. 
  
 1.    PROPOSED TENANT 
  
 
	 Name (Corporation, Individual, Corporate or Individual DBA, or Public Agency):                 
                                        
                                        
          
 	  	  
	                                      
                                        
                                        
                                        
                                        
           
 
	 
	 Standard Industrial Classification Code (SIC):                          
                                        
                                        
                
 
	  	  	  	  	  
	 Street Address:                                  
                                        
                                        
                                        
                           
 
	  	  	  	  	  
	 City, State, Zip Code:                               
                                        
                                        
                                        
                 
 
	  	  	  	  	  
	 Contact Person & Title:                              
                                        
                                        
                                        
               
 

 
  
 Telephone Number:
(        )
                                        
    Facsimile Number: (        )
                                        
     
  
  
 2.    LOCATION AND ADDRESS OF PROPOSED LEASE

  
 
	 Street Address:                                  
                                        
                                        
                                        
                           
 
	  	  	  
	 City, State, Zip Code:                               
                                        
                                        
                                        
                 
 
	  	  	  
	 Bordering Streets:                                 
                                        
                                        
                                        
                      
 
	  	  	  
	 Streets to which Premises has Access:                           
                                        
                                        
                              
 
	  	  	  

 
  
  
 3.    DESCRIPTION OF
PREMISES 
  
 
	 Floor Area:                                  
                                        
                                        
                                        
                                  
 
	  	 	  	 	  
	 Number of Parking Spaces:                              
                                        
                                        
                                        
       
 
	  	 	  	 	  
	 Date of Original Construction:                              
                                        
                                        
                                        
  
 
	  	 	  	 	  
	 Past Uses of Premises:                               
                                        
                                        
                                        
                
 
	  	 	  	 	  
	 Dates and Descriptions of Significant Additions, Alterations or Improvements:                  
                                        
  
 
	  	 	  	 	  
	                                      
                                        
                                        
                                        
                                        
           
 
	  	 	  	 	  
	 Proposed Additions, Alterations or Improvements, if
any:                                       
                                        
                     
 

 
 

 1 

  
 4.    DESCRIPTION OF PROPOSED PREMISES USE 
  
 Describe proposed use and operation of Premises including (i) services to be performed, (ii) nature and types of manufacturing or assembly
processes, if any, and (iii) the materials or products to be stored at the Premises. 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Will the operation of your business at the
Premises involve the use, generation, treatment, storage, transfer or disposal of hazardous wastes or materials? Do they now? Yes          No          If
the answer is “yes,” or if your SIC code number is between 2000 to 4000, please complete Section V. 
  
 5.    PERMIT DISCLOSURE 
  
 Does or will the operation of any facet of
your business at the Premises require any permits, licenses or plan approvals from any of the following agencies? 
  
 
	 U.S. Environmental Protection Agency
 	  	 Yes         
 	  	 No         
 
	 
	 City or County Sanitation District
 	  	 Yes         
 	  	 No         
 
	 
	 State Department of Health Services
 	  	 Yes         
 	  	 No         
 
	 
	 U.S. Nuclear Regulator Commission
 	  	 Yes         
 	  	 No         
 
	 
	 Air Quality Management District
 	  	 Yes         
 	  	 No         
 
	 
	 Bureau of Alcohol, Firearms and Tobacco
 	  	 Yes         
 	  	 No         
 
	 
	 City or County Fire Department
 	  	 Yes         
 	  	 No         
 
	 
	 Regional Water Quality Control Board
 	  	 Yes         
 	  	 No         
 
	 
	 Other Governmental Agencies (if yes,
 	  	 Yes         
 	  	 No         
 
	 
	 identify:
                                        
            )
 	  	  	  	  

 
  
 If the answer to any of the above is “yes,” please
indicate permit or license numbers, issuing agency and expiration date or renewal date, if applicable. 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 If your answer to any of the above is
“yes,” please complete Sections VI and VII. 
 

 2 

  
 6.     HAZARDOUS MATERIALS DISCLOSURE 
  
 Will any hazardous or toxic materials or substances be stored on the Premises? Yes         
No          If the answer is “yes,” please describe the materials or substances to be stored, the quantities thereof and the proposed method of storage of the same (i.e., drums, aboveground or
underground storage tanks, cylinders, other), and whether the material is a Solid (S), Liquid (L) or Gas (G): 
  
 
	 Material/ Substance
 
	  	 Quantity to be
 Stored on Premises
 
	  	 Storage Method
 
	  	 Amount to be Stored
 on a Monthly Basis
 
	  	 Maximum Period of
 Premises Storage
 

	 
	                                      
      
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 
	 
	                                      
      
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 
	 
	                                      
      
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 	  	                                     
 
 

 
  
 Attach additional sheets if necessary. 
  
 Is any modification of the Premises improvements required or planned to mitigate the release of toxic or hazardous materials substance or
wastes into the environment? Yes          No          If the answer is “yes,” please describe the proposed Premises modifications: 

 
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 7.     HAZARDOUS WASTE DISCLOSURE

  
 Will any hazardous waste, including recyclable waste, be generated by the operation of your business at the
Premises? Yes          No          If the answer is “yes,” please list the hazardous waste which is expected to be generated (or potentially will
be generated) at the Premises, its hazard class and volume/frequency of generation on a monthly basis. 
  
 
	 Waste Name
 
	 	 Hazard Class
 
	 	 Volume/Month
 
	  	 Maximum Period of
 Premises Storage
 

	 
	                                      
      
 	 	                                      
             
 	 	                                      
               
 	  	                                      
               
 
	 
	                                      
      
 	 	                                      
             
 	 	                                      
               
 	  	                                      
               
 

 
  
 Attach additional sheets if necessary. 
  
 If the answer is “yes,” please also indicate if any such wastes are to be stored within the Premises and the proposed method of
storage (i.e., drums, aboveground or underground storage tanks, cylinders, other). 
  
 
	 Waste Name
 
	  	 Storage Method
 

	  
                                      
                                        
                  
 	  	  
                                      
                                        
                           
 
	  
                                      
                                        
                  
 	  	  
                                      
                                        
                           
 

 
  
 Attach additional sheets if necessary. 
  
 If the answer is “yes,” please also describe the method(s) of disposal for each waste. Indicate where disposal will take place
including the methods, equipment and companies to be used to transport the waste: 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
 

 3 

  
 Is any treatment or processing of hazardous wastes to be conducted at the
Premises? Yes          No          If the answer is “yes,” please describe proposed treatment/processing methods: 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Which agencies are responsible for
monitoring and evaluating compliance with respect to the storage and disposal of hazardous materials or wastes at or from the Premises? (Please list all agencies): 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Have there been any agency enforcement
actions regarding Tenant (or any affiliate thereof), or any existing Tenant’s (or any affiliate’s) facilities, or any past, pending or outstanding administrative orders or consent decrees with respect to Tenant or any affiliate thereof?
Yes         No         If the answer is “yes,” have there been any continuing compliance obligations imposed on Tenant or its affiliates as a
result of the decrees or orders? Yes         No         If the answer is “yes,” please describe: 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Has Tenant or any of its affiliates been
the recipient of requests for information, notice and demand letters, cleanup and abatement orders, or cease and desist orders or other administrative inquiries? Yes        
No         If the answer is “yes,” please describe: 
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Are there any pending citizen lawsuits, or
have any notices of violations been provided to Tenant or its affiliates or with respect to any existing facilities pursuant to the citizens suit provisions of any statute? Yes        
No         If the answer is “yes,” please describe: 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Have there been any previous lawsuits
against the company regarding environmental concerns? Yes         No         If the answer is “yes,” please describe how these lawsuits were
resolved: 
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
                                      
                                        
                                        
                                        
                                        
            
  
 Has an environmental audit ever been
conducted at any of your company’s existing facilities? Yes         No         If the answer is “yes,” please describe: 

 4 

  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
 Does your company carry environmental
impairment insurance? Yes           No           If the answer is “yes,” what is the name of the carrier and what are the
effective periods and monetary limits of such coverage? 
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
 8.    EQUIPMENT LOCATED OR TO BE
LOCATED AT THE PREMISES 
  
 Is (or will there be) any electrical transformer or other equipment containing
polychlorinated biphenyls located at the Premises? Yes           No           If the answer is “yes,” please specify the
size, number and location (or proposed location): 
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
 Is (or will there be) any tank for
storage of a petroleum product located at the Premises? Yes           No           If the answer is “yes,” please
specify capacity and contents of tank; permits, licenses and/or approvals received or to be received therefor and any spill prevention control or conformance plan to be taken in connection therewith: 
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
 9.    ONGOING ACTIVITIES (APPLICABLE
TO TENANTS IN POSSESSION) 
  
 Has any hazardous material, substance or waste spilled, leaked, discharged,
leached, escaped or otherwise been released into the environment at the Premises? Yes           No           If the answer is
“yes,” please describe including (i) the date and duration of each such release, (ii) the material, substance or waste released, (iii) the extent of the spread of such release into or onto the air, soil and/or water, (iv) any action to
clean up the release, (v) any reports or notifications made of filed with any federal, state, or local agency, or any quasi-governmental agency (please provide copies of such reports or notifications) and (vi) describe any legal, administrative or
other action taken by any of the foregoing agencies or by any other person as a result of the release: 
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
                                      
                                        
                                        
                                        
                                        
             
  
 This Hazardous Materials
Questionnaire is certified as being true and accurate and has been completed by the party whose signature appears below on behalf of Tenant as of the date set forth below. 
  
 DATED:                                    
                                        

  
  
 Signature                                    
                                        
         
  
 Print
Name                                       
                                        
   
  
 Title                                    
                                        
                 
 

 5 

  
 EXHIBIT E 
  
 FORM OF LETTER OF CREDIT 
  
 [Name of Financial
Institution] 
  
 Irrevocable Standby  
 Letter of Credit 
 No.                                     
              
 Issuance
Date:                              
 Expiration Date:                          
 Applicant: Kosan Biosciences Incorporated 
  
 Beneficiary 
  
 EOP-Industrial Portfolio, L.L.C. 
 2200 Powell Street 
 Suite 200 

Emeryville, California 94608 
 Attention: Leasing Director 
  
 Ladies/Gentlemen: 
  
 We hereby establish our Irrevocable Standby Letter of Credit in your favor for the account of the above referenced Applicant in the amount
of Nine Hundred Three Thousand Three Hundred Twelve and 00/100 U.S. Dollars ($903,312.00) available for payment at sight by your draft drawn on us when accompanied by the following documents: 
  

	 	1.
	 
	An original copy of this Irrevocable Standby Letter of Credit. 
 

  

	 	2.
	 
	Beneficiary’s dated statement purportedly signed by an authorized signatory or agent reading: “This draw in the amount of
            U.S.Dollars ($            ) under your Irrevocable Standby Letter of Credit
No.        represents funds due and owing to us pursuant to the terms of that certain lease by and between             , as landlord, and
            , as tenant, and/or any amendment to the lease or any other agreement between such parties related to the lease.” 
 

  
 It is a condition of this Irrevocable Standby Letter of Credit that it will be considered automatically renewed for a one year period upon
the expiration date set forth above and upon each anniversary of such date, unless at least 60 days prior to such expiration date or applicable anniversary thereof, we notify you in writing, by certified mail return receipt requested or by
recognized overnight courier service, that we elect not to so renew this Irrevocable Standby Letter of Credit. A copy of any such notice shall also be sent, in the same manner, to: Equity Office Properties Trust, 2 North Riverside Plaza, Suite 2100,
Chicago, Illinois 60606, Attention: Treasury Department. In addition to the foregoing, we understand and agree that you shall be entitled to draw upon this Irrevocable Standby Letter of Credit in accordance with 1 and 2 above in the event that we
elect not to renew this Irrevocable Standby Letter of Credit and, in addition, you provide us with a dated statement purportedly signed by an authorized signatory or agent of Beneficiary stating that the Applicant has failed to provide you with an
acceptable substitute irrevocable standby letter of credit in accordance with the terms of the above referenced lease. We further acknowledge and agree that: (a) upon receipt of the documentation required herein, we will honor your draws against
this Irrevocable Standby Letter of Credit without inquiry into the accuracy of Beneficiary’s signed statement and regardless of whether Applicant disputes the content of such statement; (b) this Irrevocable Standby Letter of Credit shall permit
partial draws and, in the event you elect to draw upon less than the full stated amount hereof, the stated amount of this Irrevocable Standby Letter of Credit shall be automatically reduced by the amount of such partial draw; and (c) you shall be
entitled to transfer your interest in this Irrevocable Standby Letter of Credit from time to time and more than one time without our approval and without charge. In the event of a transfer, we reserve the right to require reasonable evidence of such
transfer as a condition to any draw hereunder. 
  
 This Irrevocable Standby Letter of Credit is subject to the
Uniform Customs and Practice for Documentary Credits (1993 revision) ICC Publication No. 500. 
  
 We hereby engage
with you to honor drafts and documents drawn under and in compliance with the terms of this Irrevocable Standby Letter of Credit. 
  
 All communications to us with respect to this Irrevocable Standby Letter of Credit must be addressed to our office located at
                                 to the attention of    
                         . 
  
 
	 Very truly yours,
 
	 
	 

	 
	 [name]
 

	  
 [title]
 

 
 

 1Prepared by R.R. Donnelley Financial -- Landlord Consent of Lease

 Exhibit 10.42 
  
 LANDLORD CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE 
  
 THIS LANDLORD CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE (the “Consent Agreement”) is entered into as of June 20, 2002, by and among EOP-INDUSTRIAL PORTFOLIO, L.L.C., a Delaware limited liability company (“Landlord”), AVENTIS
PHARMACEUTICALS INC., a Delaware corporation (“Assignor”) and KOSAN BIOSCIENCES, INCORPORATED, a Delaware corporation (“Assignee”). 
  
 RECITALS: 
  
 A.  Landlord (as successor in interest
to Spieker Properties, L.P., a California limited partnership), as landlord, and Assignor (formerly named Rhone-Poulenc Rorer Pharmaceuticals, Inc., a Delaware corporation), as tenant, are parties to that certain lease dated December 1, 1997 (the
“Lease”). Pursuant to the Lease, Landlord has leased to Assignor space currently containing approximately 69,512 rentable square feet (the “Premises”) of industrial space located at 3825 Bay Center Place, Building A,
Hayward, California (the “Building”) in the project commonly known as Bay Center III Business Park. 
  
 B.  Assignor and Assignee have entered into that certain agreement (“Assignment Agreement”) attached hereto as Exhibit A whereby Assignor assigned all of its right, title and interest in and to the Lease to
Assignee. 
  
 C.  Assignor and Assignee have requested Landlord’s consent to the Assignment Agreement
and the transaction described therein. 
  
 D.  Landlord has agreed to give such consent upon the terms and
conditions contained in this Consent Agreement. 
  
 NOW THEREFORE, in consideration of the foregoing recitals
which by this reference are incorporated herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord, Assignor and Assignee agree and represent as follows: 
  
 1.  Assignment Agreement.    Assignor and Assignee hereby represent and warrant that: (a) a true,
complete and correct copy of the Assignment Agreement is attached hereto as Exhibit A; and (b) the Assignment Agreement fully assigns all of Assignor’s right, title and interest in the Lease to Assignee (the “Transfer”).

  
 2.  Representations.    Assignor hereby represents and warrants that
Assignor (i) has full power and authority to assign its entire right, title and interest in the Lease to Assignee; (ii) has not transferred or conveyed its interest in the Lease to any person or entity, collaterally or otherwise; and (iii) has full
power and authority to enter into the Assignment Agreement and this Consent Agreement. Assignee hereby represents and warrants that Assignee has full power and authority to enter into the Assignment Agreement and this Consent Agreement.

  
 3.  Assumption.    Notwithstanding anything to the contrary contained in the
Assignment Agreement, Assignee, for itself and its successors and assigns, hereby assumes and agrees to perform and be bound by all of the covenants, agreements, provisions, conditions and obligations of the tenant under the Lease, including but not
limited to, the obligation to pay Landlord for all adjustments of rent and other additional charges payable pursuant to the terms of the Lease. Nothing contained in the Assignment Agreement shall be deemed to amend, modify or alter in any way the
terms, covenants and conditions set forth in the Lease. 
  
 4.  No
Release.    Nothing contained in the Assignment Agreement or this Consent Agreement shall be construed as relieving or releasing the Assignor from any of its obligations under the Lease, and it is expressly understood that
Assignor shall remain liable for such obligations notwithstanding the subsequent assignment(s), sublease(s) or transfer(s) of the interest of the tenant under the Lease. Notwithstanding the foregoing to the contrary, in the event Assignee properly
exercises the Renewal Option set forth in Section 38 E of the Lease, Landlord shall release and discharge Assignor from any obligations, agreements, and covenants to be observed and performed by the “Tenant” under the Lease relating to or
arising out of the period from and after the expiration of the initial term of the Lease; and such release and discharge shall be, and is hereby declared to be, effective without the execution by Landlord of any other documents provided that

  
 

 1 

  
 Assignor transfers to Landlord prior to the expiration of the initial term of the Lease the full amount
of the Security Deposit (as defined in the Assignment) then held by Assignor pursuant to Section 15 of the Assignment. 
  
 In the event Assignee properly exercises the Renewal Option set forth in Section 38 E of the Lease, Assignor agrees to deposit with Landlord the Security Deposit, then held by Assignor, as stated in Section 15 of the Assignment.
Notwithstanding any provision of the Lease to the contrary, the Security Deposit shall be held and owned by Landlord, without obligation to pay interest, as security for the performance of Assignee’s covenants and obligations under the Lease.
The Security Deposit is not an advance rental deposit or a measure of damages incurred by Landlord in case of Assignee’s default. Upon the occurrence of any event of default by Assignee under the Lease, Landlord may from time to time, without
prejudice to any other remedy provided in the Lease or by law, use such fund to the extent necessary to credit against any arrears of Rent or other payments due to Landlord under the terms and provisions of the Lease and any other damage, injury,
expense or liability caused by an event of default under the Lease, and Assignee shall pay to Landlord, on demand, the amount so applied in order to restore the Security Deposit to its original amount throughout the term of the Lease as extended.
Although the Security Deposit shall be deemed the property of Landlord, any remaining balance of such deposit shall be promptly returned by Landlord to Assignee at such time after termination of the Lease that all of Assignee’s obligations
under the Lease have been fulfilled and in any event within forty five (45) days from the date of termination, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Assignee in the payment of Rent or other
obligations of Assignee under the Lease, including any obligation to repair damage to the Premises, Building or Project caused by Assignee or any Assignee’s Parties as required pursuant to the Lease. Landlord is hereby granted a security
interest in the Security Deposit in accordance with applicable provisions of the California Commercial Code. Landlord may use and commingle the Security Deposit with other funds of Landlord. Assignee hereby waives the provisions of Section 1950.7 of
the California Civil Code, and all other provisions of any Regulations, (as defined in the lease) now or hereinafter in force, which restricts the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord
(or its successors) any obligation with respect to the handling or return of security deposits. 
  
 In no event shall
the Assignment Agreement or this Consent Agreement be construed as granting or conferring upon the Assignor or the Assignee any greater rights than those contained in the Lease nor shall there be any diminution of the rights and privileges of the
Landlord under the Lease, nor shall the Lease be deemed modified in any respect, except as provided above. Without limiting the scope of the preceding sentence, any construction or alterations performed in or to the Premises shall be performed with
Landlord’s prior written approval and in accordance with the terms and conditions of the Lease. Landlord acknowledges that Assignee intends to perform certain tenant improvements in the Premises in accordance with the provisions of Exhibit
A of the Assignment Agreement. Landlord hereby generally approves of the type of work to be performed by Assignee, provided that the specific work to be performed by Assignee shall be subject to Landlord’s further prior approval as set
forth in the Lease, and further provided that such work shall otherwise be performed in accordance with the provisions of the Lease. It is specifically understood that Landlord is not a party to the Assignment Agreement and, notwithstanding anything
to the contrary contained in the Assignment Agreement, is not bound by any terms, provisions, representations or warranties contained in the Assignment Agreement and is not obligated to Assignor or Assignee for any of the duties and obligations
contained therein. 
  
 5.  Improvement Payment.    Landlord acknowledges that
pursuant to Section 9 of the Assignment Agreement, Assignor is receiving a payment in the amount of $1,000,000.00 (the “Improvement Payment”) from Assignee in connection with the assignment of all of Assignor’s right, title and
interest (if any) in and to the improvements constructed by Assignor in the Premises and that the Improvement Payment does not constitute Bonus Rent payable in whole or in part to Landlord pursuant to Section 21.B. of the Lease. Notwithstanding any
of the foregoing or anything in the Assignment Agreement to the contrary, Assignor and Assignee acknowledge and agree that pursuant to Section 12 of the Lease, all Alterations and improvements to the Premises (including but not limited to the
improvements constituting consideration for the Improvement Payment) shall be and become the property of Landlord if Landlord so elects at the expiration or earlier termination of the Lease and that the provisions of Section 12 of the Lease
supersede any 
 

 2 

  
 rights of Assignor or Assignee in and to the Alterations in the Premises which are granted or conveyed
pursuant to the Assignment Agreement. 
  
 6.  In addition, Assignor and Assignee further acknowledge and
agree that in the event of any subsequent assignment of the Lease or sublease of all or a portion of the Premises, any consideration received by Assignor and Assignee which is attributable to the current (as of the date of this Consent Agreement)
Alterations or improvements to the Premises (the “Current Alterations”) shall be divided and paid 50% percent to Assignee or Assignor (as the case may be) and 50% to Landlord. In the alternative, in the event consideration is paid in
connection with such assignment or sublease, but none of the consideration so paid is allocated to the Current Alterations, then Assignor and Assignee agree that the cost or value of the Current Improvements shall not be deducted from the
consideration received in connection with such assignment or sublease for purposes of determining the Bonus Rent payable to Landlord in connection with such assignment or sublease. 
  
 7.  Tenant Default.    Notwithstanding anything in the Lease to the contrary, Landlord agrees that in the event of a default by
Assignee under the Lease which continues beyond any applicable notice and cure period set forth therein, Landlord shall not terminate the Lease or Assignee’s right to possession thereunder or exercise any other right or remedy relating thereto,
unless and until Landlord has provided Assignor with written notice of Assignee’s default under the Lease and Assignor has failed to cure such default within 3 business days of Assignor’s receipt of written notice of such default from
Landlord. 
  
 8.  Review Fee.    Upon Assignor’s execution and delivery of
this Consent Agreement, Assignor shall pay to Landlord the sum of $0.00 in consideration for Landlord’s review of the Assignment Agreement and preparation of this Consent Agreement. 
  
 9.  Landlord’s Consent.    In reliance upon the agreements and representations contained in this Consent Agreement, Landlord
hereby consents to the Transfer. This Consent Agreement shall not constitute a waiver of the obligation of the tenant under the Lease to obtain the Landlord’s consent to any subsequent assignment, sublease or other transfer under the Lease, nor
shall it constitute a waiver of any existing defaults under the Lease. 
  
 10.  Notice
Address.    Any notices to Assignee shall be effective when served to Assignee at the Premises in accordance with the terms of the Lease. From and after the effective date of the Assignment, notices to Assignor shall be
served at the following address Aventis Pharmaceuticals, Building 200, 200 Crossing Blvd., Bridgewater, NJ 08807 Attention: VP Legal Corporate Development, Mail Stop BX2-700A; with a copy to Aventis Pharmaceuticals, 400 Somerset Corporate Blvd.,
Box 6912 Bridgewater, NJ 08807-0912 Attention: North America Real Estate, Mail Stop SC4-725B: 
  
 11.  Copies of Notice.    From and after the effective date of the Assignment, in accordance with the terms of the Lease, Landlord will provide copies of all notices to Assignor and Assignee.

  
 12.  Authority.    Each signatory of this Consent Agreement represents
hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting. 
  
 13.  Counterparts.    This Consent Agreement may be executed in counterparts and shall constitute an agreement binding on all parties notwithstanding that all parties are not signatories
to the original or the same counterpart provided that all parties are furnished a copy or copies thereof reflecting the signature of all parties. 
  
 14.  Future Improvements.    As to any improvements made by Assignee to the Premises, that are approved by Landlord, Landlord agrees to look solely to Assignee to
restore Premises in the event such restoration is required under the Lease. 
  
 

 3 

  
 IN WITNESS WHEREOF, Landlord, Assignor and Assignee have executed this
Consent Agreement on the day and year first above written. 
  
 LANDLORD:

  
 EOP-INDUSTRIAL PORTFOLIO, L.L.C., a Delaware limited liability company 

 
 By: EOP Operating Limited Partnership, a Delaware limited partnership, its sole member 

 
 By: Equity Office Properties Trust, a Maryland real estate investment trust, its general partner

 
	 
	 By:
 	 	 /s/    MARK
GEISREITER        
 

	 Name:
 Title:
 	 	 Mark Geisreiter
 Senior Vice
President
 

 
  
 ASSIGNOR: 
  
 
	 AVENTIS PHARMACEUTICALS INC., a Delaware corporation
 
	 
	 By:
 	 	 /s/    CHARLES D.
DUTTON        
 

	 Name:
 Title:
 	 	 Charles D. Dutton
 VP—Legal Corp. Development
 

 
  
 ASSIGNEE: 
  
 
	 KOSAN BIOSCIENCES, INCORPORATED, a Delaware corporation
 
	 
	 By:
 	 	 /s/    MICHAEL S. OSTRACH
 

	 Name:
 Title:
 	 	 Michael S. Ostrach
 President
 

 
  
 
	 
	 By:
 	 	 /s/    SUSAN M.
KANAYA        
 

	 Name:
 Title:
 	 	 Susan M. Kanaya
 S.V.P.,
Finance & C.F.O.
 

 
  
 

 4 

  
 EXHIBIT A 
  
 COPY OF ASSIGNMENT AGREEMENT 
  
 

 5 

  
 ASSIGNMENT OF LEASE 
  
 THIS ASSIGNMENT OF LEASE (the “Assignment”) is made and entered into as of this 21st day of June, 2002 (“Execution Date”), by and between
AVENTIS PHARMACEUTICALS INC., formerly named Rhone-Poulenc Rorer Pharmaceuticals, Inc., a Delaware corporation (“Assignor”) and KOSAN BIOSCIENCES, INCORPORATED, a Delaware corporation (“Assignee”). 

 
 RECITALS 
  
 A.  Aventis Pharmaceuticals Inc., formerly named Rhone-Poulenc Rorer Pharmaceuticals, Inc., a Delaware corporation, as tenant, and Spieker Properties, L.P., a California limited partnership (“Spieker”), as
landlord, entered into that certain Lease dated as of December 1, 1997 (the “Lease”), whereby Assignor leased from Spieker those certain premises located at 3825 Bay Center Place, Building “A” of Bay Center III Business
Park, Hayward, California 94545 (herein the “Premises”). 
  
 B.  EOP—Industrial
Portfolio, L.L.C., a Delaware limited liability company (“Landlord”) is the successor in interest to Spieker. 
  
 C.  On the terms and conditions set forth below, Assignor desires to assign all of its right, title and interest in and to the Lease to Assignee, and Assignee desires to assume all of Assignor’s rights, duties, and
obligations in and to the Lease which first accrue on and after the Effective Date (defined below). 
  
 NOW,
THEREFORE, for good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee hereby covenant and agree as follows: 
  
 1.  Assignment of Lease.    If and when the Effective Date occurs, Assignor conveys, transfers and assigns to Assignee all of
Assignor’s right, title and interest in and to the Lease, together with all of Assignor’s right, title, and interest (if any) in and to, and the right to use, all building alterations and improvements constructed by Assignor and its
employees, agents, and contractors in the Premises, including all heating, ventilating, and air conditioning fixtures, chillers, boilers and laboratory casework, (the “Improvements”) but specifically excluding from the
Improvements all biological safety cabinets, security, phone, and voice-mail systems, office, library, and laboratory furniture, all systems and equipment leased by Assignor (including but not limited to the deionized water system), and all other
tangible personal property located at the Premises (the “Improvements”). ASSIGNEE UNDERSTANDS THAT THE IMPROVEMENTS ARE BEING CONVEYED “AS IS, WHERE IS”, WITH ANY AND ALL FAULTS, AND WITHOUT ANY REPRESENTATION OR WARRANTY
BY ASSIGNOR, EXPRESS OR IMPLIED, OF OWNERSHIP, MERCHANTABILITY, FITNESS, CONDITION, QUALITY, OR CAPACITY THEREOF. 
  
 2.  Assumption of Obligations.    If and when the Effective Date occurs, Assignee accepts the foregoing assignment and agrees to assume, pay and perform all terms and obligations of Assignor under
the Lease first accruing on and after the Effective Date. 
  
 

 1 

  
 3.  Sale of Tangible Personal
Property.    If and when the Effective Date occurs, Assignor conveys, transfers and assigns to Assignee all of Assignor’s right, title, and interest in and to certain tangible personal property, as further described in
and pursuant to the Bill of Sale (“Bill of Sale”) attached hereto as Exhibit C, for the sum of Thirty-Eight Thousand One Hundred Ten Dollars ($38,110). 
  
 4.  Conditions Precedent.    This Assignment and the Bill of Sale shall become effective on the date by which all of the conditions
precedent stated in this Section have been satisfied or waived (the “Effective Date”), but in no event shall the Effective Date be any earlier than June 1, 2002, nor any later than June 14, 2002. If any of the conditions precedent
stated in this Section are not waived in writing or satisfied on or before June 14, 2002, then (a) this Assignment shall become void, whereupon neither Assignor nor Assignee shall have any further rights or obligations under this Assignment, and (b)
Assignor shall continue to be bound by and to perform its obligations under the Lease, as if this Assignment had not been executed. The conditions precedent are as follows: 
  
 A.  Assignor has vacated and surrendered possession of the Premises and Improvements to Assignee in broom-clean condition and in the same
configuration and condition existing on the Execution Date; 
  
 B.  All of the
representations made herein by Assignor in Section 5 and by Assignee in Section 6 are true and correct as of the Execution Date and again as of the Effective Date; 
  
 C.  Landlord shall have approved this Assignment in writing on terms reasonably acceptable to both Assignor and Assignee; 
  
 D.  Assignee’s receipt of written approval from Landlord, in a form reasonably acceptable to Assignee, to
construct the tenant improvements to the Premises described in Exhibit A attached hereto; 
  
 E.  Assignor has received from Assignee payment in full of One Million Dollars (US $1,000,000.00) as set forth in Section 9; 
  
 F.  Assignor has received from Assignee payment in full of Thirty-Eight Thousand One Hundred Ten Dollars ($38,110) as set forth in Section 3;

  
 G.  Assignor has received from Assignee payment in full of Two Hundred Forty Thousand
Dollars ($240,000), as a security deposit as set forth in Section 15; and 
  
 H.  Assignor
has provided Assignee satisfactory evidence that it has closed out all permits issued to it by city, county, and state agencies as to Assignor’s use of the Premises and that Assignor has obtained all necessary closing certifications from
applicable governmental authorities. 
 

 2 

  
 5.  Assignor’s
Representations.    Assignor represents to Assignee (as of the Execution Date and again as of the Effective Date) as follows: (i) The Lease has not been modified, amended, supplemented, terminated, extended or renewed except
as set forth in Exhibit B, and a true and correct copy of the Lease, including any amendments thereto, is attached as Exhibit B; (ii) Assignor has not previously assigned its interest in the Lease or sublet the Premises or any portion
thereof or entered into any agreement permitting any person or entity to use or occupy any portion of the Premises or the Improvements; (iii) the Lease is in full force and effect and there exists no default under the Lease on the part of Assignor
or, to the current actual knowledge of Assignor, Landlord, nor has any event occurred which, with the giving of notice or the passage of time or both, could constitute a breach or default by Assignor or, to the current actual knowledge of Assignor,
Landlord under the Lease; (iv) Assignor has paid all base rent, additional rent, and all other charges presently due and payable under the Lease through and including June 30, 2002, subject to reconciliation of Operating Expenses (as that term is
defined in Lease) by Landlord for calendar year 2001, if any; (v) Assignor is a corporation in good standing under Delaware law and is authorized to do business in California and the person signing this Assignment on behalf of Assignor has the full
power and authority to bind Assignor to this Assignment; (vi) Assignor has not received written notice of any pending or threatened litigation which affects Assignor’s use of or operations on the Premises; and (vii) the “Commencement
Date” of the Lease was March 1, 1998 and the “Expiration Date” of the Lease is February 29, 2008. 
  
 6.  Assignee’s Representations.    Assignee represents and warrants to Assignor that Assignee is a corporation in good standing under Delaware law and authorized to do business in California
and the person signing this Assignment on behalf of Assignee has the full power and authority to bind Assignee to this Assignment. 
  
 7.  Indemnity.    If and when the Effective Date shall occur: (i) Assignor shall indemnify, defend (with counsel reasonably acceptable to Assignee), protect and hold harmless
Assignee and its officers, directors, employees, agents and assigns from and against all claims, demands, losses, costs (including reasonable attorney’s fees and costs) or liabilities (a) arising under the Lease as a consequence of
Assignor’s breach or default of the obligations of tenant under the Lease or relating to or resulting from Assignor’s use or occupancy of the Premises accruing prior to the Effective Date, and (b) arising from the breach of any of
Assignor’s covenants, obligations, or representations in Section 5 under this Assignment; and (ii) Assignee shall indemnify, defend (with counsel reasonably acceptable to Assignor), protect and hold harmless Assignor and its officers,
directors, employees, agents and assigns from and against all claims, demands, losses, costs (including reasonable attorney’s fees and costs) or liabilities (a) arising under the Lease as a consequence of Assignee’s breach or default of
the obligations of the tenant under the Lease or relating to or resulting from Assignee’s use or occupancy of the Premises accruing on or after the Effective Date, and (b) arising from the breach of any of Assignee’s covenants,
representations or obligations under this Assignment. The foregoing indemnity provisions shall survive the expiration or termination of the Lease and this Assignment. 
  
 8.  Proration of Costs.    All rent, operating expense pass-throughs and any other periodic charges payable by Assignor under the Lease
shall be prorated between Assignor and Assignee as of the Effective Date, it being understood that Assignee shall have no obligation to 
  
 

 3 

  
  
 pay any portion of Base Rent, Tenant’s Proportionate Share
of Operating Expenses or any other Additional Rent or other sums accruing under the Lease at any time prior to the Effective Date, and it being further understood that Assignor shall have no obligation to pay any portion of Base Rent, Tenant’s
Proportionate Share of Operating Expenses or any other Additional Rent or other sums accruing under the Lease on and after the Effective Date. The foregoing prorations shall include any operating expense reconciliation made by Landlord under the
Lease, and shall be calculated as soon as is feasible. Any sums owed shall bear interest at the rate of twelve percent (12%) per anum or the highest amount allowed by law, whichever is less, if payment is not made by the responsible party within
twenty (20) days after its receipt of a bill for any amounts owed. 
  
 9.  Improvement
Payment.    If and when the Effective Date shall occur, then as consideration for Assignor’s assignment to Assignee of all of Assignor’s right, title and interest (if any) in and to the Improvements constructed by
Assignor in the Premises, and as consideration for Assignee’s right to use the Improvements (which Improvements were constructed by Assignor at its cost), and not as consideration for the assignment of the Lease, Assignee shall pay to Assignor
on the Effective Date the non-refundable cash sum of One Million Dollars (US $1,000,000.00) by wire transfer of immediately available funds. 
  
 10.  Brokerage Commissions.    Assignee and Assignor (i) represent to each other that they have not had any dealings with any real estate brokers, leasing agents or
salesmen, or incurred any obligations for the payment of real estate brokerage commissions or finder’s fees which would be earned or due and payable by reason of the execution of this Assignment, except a possible fee claimed by Cresa Partners,
and (ii) agree to indemnify, defend and hold harmless each other from any claim for any such commission or fees which result from the actions of the indemnifying party; provided, however Assignor shall be responsible for the payment of the
commission claimed by Cresa Partners (if any) in connection with this Assignment. 
  
 11.  Notices.    Unless at least five (5) days’ prior written notice is given in the manner set forth in this Section, the address of each party for all purposes connected with this
Assignment shall be that address set forth below their signatures, at the end of this Assignment. All notices, demands or communications in connection with this Assignment shall be properly addressed and (i) submitted to an overnight courier
service, charges prepaid, or (ii) deposited in the mail (registered or certified, return receipt requested, and postage prepaid). Notices shall be deemed effective on the first business day following receipt or refusal to accept delivery.

  
 12.  Default.    In the event of any event of default under the Lease by
Assignee that continues after the expiration of any applicable notice and cure periods or in the event of any breach of Assignee’s covenants in this Assignment, then at Assignor’s sole option and after Assignor’s notice to Assignee
that Assignor intends to exercise its right of re-entry and reversion if the default is not cured by Assignee within five (5) days of Assignor’s notice to Assignee, this Assignment (except Assignee’s and Assignor’s obligations under
Section 7) and all of Assignee’s rights hereunder shall terminate, and Assignor reserves a right of re-entry and all of Assignee’s right, title, estate, and other interest in, to, and under the Lease shall revert to Assignor. Failure by
Assignor to exercise its reversion right in one instance does not waive Assignor’s right to exercise such right in the future. In the event of Assignor’s exercise of its reversion right, Assignor shall be entitled to immediate possession
of the Premises. 
  
 

 4 

  
 13.  Notices.    Assignee covenants and
agrees to deliver promptly to Assignor copies of all notices received from Landlord relating to defaults, events of default, breaches, non-compliance, notices of sale, change of addresses, requests for estoppel certificates, and all other notices
relating to matters which could affect Assignor’s liabilities under the Lease, and Assignor agrees that it will promptly forward to Assignee a copy of any notices given by Landlord to Assignor relating to said matters as described in this
Section. 
  
 14.  Copies of Amendments, Assignments and Subleases.    As a
condition precedent to Assignee’s right to amend the Lease and as a condition precedent to Assignee’s rights under the Lease to sublet the Premises or assign its interest in the Lease, Assignee shall provide Assignor with copies of all
proposed amendments, subleases or assignments which Assignee may consider entering into and Assignor shall have the right to approve such amendments, subleases or assignments, which approval shall not be unreasonably withheld, delayed, or
conditioned; provided, however, that Assignee shall be entitled to make the Permitted Transfers described in Section 21.F of the Lease in accordance with that Section 21.F without Assignor’s consent, so long as the conditions of
said Section 21.F are satisfied, and Assignor shall have no right to withhold its consent to an assignment or sublease consented to by Landlord. Any amendment or assignment of the Lease or subletting of the Premises by Assignee shall not operate to
release Assignee from its obligations pursuant to this Assignment to perform the covenants and obligations of tenant contained in the Lease. 
  
 15.  Security Deposit.    Concurrently with its execution of this Assignment, Assignee shall deliver to Assignor the sum of Two Hundred, Forty Thousand Dollars
($240,000) as security for the performance by Assignee of every covenant and condition of this Assignment and the Lease to be performed by Assignee (the “Security Deposit”). Said Security Deposit may be co-mingled with other funds
of Assignor and shall bear no interest. If Assignee shall default with respect to any covenant or condition of the Lease or this Assignment, whether monetary or non-monetary, including, but not limited to the payment of rent, Assignor may apply the
whole or any part of such Security Deposit to the payment of any sum in default under the Lease or any sum which Assignor may be required to spend by reason of Assignee’s default under the Lease. If any portion of the Security Deposit is so
applied, Assignee, upon demand by Assignor and notice from Assignor that said sums have been applied to Lease obligations will deposit cash with Assignor in an amount sufficient to restore the Security Deposit to its original amount. The Security
Deposit or any balance thereof shall be returned to Assignee within thirty (30) days after expiration or earlier termination of the Lease term. 
  
 16.  Miscellaneous.    The parties hereto shall execute and deliver such additional documents and take such additional actions as either may reasonably request to
carry out the purposes of this Assignment. This Assignment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that the obligations of Assignee under this
Assignment shall not be assignable without Assignor’s prior written consent (except as provided in Section 14 above), nor shall Assignee grant or allow to exist any mortgage, security interest, or other liens in respect to the leasehold estate
created by the Lease or Assignee’s interest therein without the prior written consent of Assignor, which consent may be withheld in Assignor’s reasonable discretion (provided, however, that Assignee shall be entitled to grant a security
interest in its equipment and personal property pursuant to the Lease). If any party brings an action or legal proceeding with respect to this Assignment 
 

 5 

  
 against the other party hereto, the prevailing party shall be entitled to recover its reasonable
attorneys’ fees and costs. All captions contained in this Assignment are for convenience of reference only and shall not affect the construction of this Assignment. This Assignment constitutes the entire agreement between Assignor and Assignee
regarding the Lease and the Premises, and there are no binding agreements or representations between the parties except as expressed herein. No subsequent change or addition to this Assignment shall be binding unless in writing and signed by the
party sought to be bound thereby. This Assignment may be executed in or more counterparts, each of which shall be an original, but all of which, taken together, shall constitute one and the same Assignment. This Assignment shall be governed by and
construed in accordance with the laws of the State of California. 
  
 17.  Other
Agreements.    Assignor and Assignee each acknowledges and agrees that this Assignment is subject to certain additional agreements, terms, provisions, and covenants as contained in the Landlord’s consent described in
Section 4.C of this Assignment. 
 

 6 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the
date first set forth above. 
  
 Assignor: 
  

	 AVENTIS PHARMACEUTICALS INC.,
 formerly named Rhone-Poulenc Rorer Pharmaceuticals, Inc.
 
	 
	 By:
 	 	 /s/    Charles D. Dalton      
 

	 Name:
 	 	 Charles D. Dalton
 
	 Title:
 	 	 Vice President, Legal & Corporate Development
 

 
  
 Address: 200 Crossing Boulevard 
 Bridgewater, NJ 08807 
 Attn: VP Legal
Corporate Development 
 Mail Stop—BX2-700A 
  
 With a copy to: 
  
 Aventis Pharmaceuticals Inc. 
 400 Somerset Corporate Boulevard 
 Bridgewater, NJ 08807 
 Attn: North America
Real Estate 
 Mail Stop—SC4-725A 
 

 7 

  
 Assignee: 
  

	 KOSAN BIOSCIENCES, INCORPORATED,
 a Delaware corporation
 
	 
	 By:
 	 	 /s/    Michael S. Ostrach      
 

	 Name:
 	 	 Michael S. Ostrach
 
	 Title:
 	 	 President
 
	 Address:
 	 	 3832 Bay Center Place
 Hayward,
CA 94545
 

 
 

 8 

  
 EXHIBIT A 
  
 Description of Tenant Improvements 
  
 The planned modifications of 3825 Bay Center Place by Kosan Biosciences, Incorporated (“Kosan”) include the following. Kosan will modify office area to suit its needs by installing cubicles in a design that best
utilizes the space available. Kosan will modify existing labs to suit its needs. Such modifications may include, but not be limited to, the addition of chemical hoods, addition of biological hoods and HVAC modifications to accommodate the hoods,
installation of warm room(s) and/or clean room(s), as well as addition of bench space to suit needs. Other modifications may include, but not be limited to, the installation of additional voice and data cabling, installation of telecommunications
system, and miscellaneous plumbing modifications as needed. 
  
 Kosan also plans to build out the existing shell
space that would be similar to the build out of the already improved space. 
 

 9 

  
 EXHIBIT B 
  
 Copy of Lease 
 

 10 

  
 EXHIBIT B 
  
 LEASE 
  
 THIS LEASE is made as of the 1st day of December, 1997, by
and between Spieker Properties, L.P. a California limited partnership (hereinafter called “Landlord”), and Rhone-Poulenc Rorer Pharmaceuticals, Inc., a Delaware Corporation (hereinafter called “Tenant:) 
  
 1.    PREMISES 
  
 Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions hereinafter set forth, these premises (the “Premises”) outlined in red on Exhibit A and
described in the Basic Lease Information. The Building and Project are outlined in blue and green respectively on Exhibit A. Additionally, the number of buildings which constitute the Project may change from time to time, in which event
Tenant’s Proportionate Share of the Project shall he recalculated. Tenant accepts the area of the Premises as specified in this Lease as the approximate area of the Premises, and acknowledges and agrees that Tenant, absent manifest error, shall
in no event be entitled to a recalculation of the square footage of the Premises and that, absent manifest error, no such recalculation shall reduce Tenant’s obligations under this Lease in any manner, including without limitation the amount of
Base Rent payable by Tenant or Tenant’s Proportionate Share of the Building and of the Project. 
  
 2.    POSSESSION AND LEASE COMMENCEMENT 
  
 B.    Construction
Improvements 
  
 The term commencement date (“Term Commencement Date”) shall be March 1, 1998,
provided that the Term Commencement Dale shall be extended one day I’m each day that delivery of the Premises in Building Shell condition (as defined in Paragraph 38.11 of the Lease) by Landlord to Tenant is delayed beyond the date of full
execution of this Lease. Tenant shall not be liable for any Rent for any period prior to the Term Commencement Date (but without affecting any obligations of Tenant under any work letter appended to this Lease.) Tenant shall not be liable for any
Rent for any period prior to the Term Commencement Date (but without affecting any obligations of’ Tenant under any work letter appended to this lease). Upon Landlord’s request, Tenant shall promptly execute and return to Landlord a tenant
shall agree, among other things, to acceptance of the Premises and to the determination of the Term Commencement Date, in accordance with the terms of this Lease. 
  
 3.    POSSESSION AND LEASE COMMENCEMENT 
  
 The term of this Lease (the “Term”) shall commence on the Term Commencement Date and continue in full force and effect for the number of years specified as the Length of Term in the Basic Lease Information or until this
Lease is terminated as otherwise provided herein. If the Term Commencement Date is a date other than the first day of the calendar month, the Term shall be the number of years of the Length of Term in addition to the remainder of the calendar month
following the Term Commencement Date. 
  
 4.    USE 
  
 A.    General.    Tenant shall use the Premises for the permitted use specified in the Basic Lease Information
(“Permitted Use”) and for no other use or purpose. Tenant shall control Tenant’s employees, agents, customers, visitors, invitees, licenses, contractors, assignees and subtenants (collectively, “Tenant’s Parties”) in
such a manner that Tenant and Tenant’s Parties cumulatively do not exceed the parking density specified in the Basic Lease Information (the “Parking Density”) at any time. Notwithstanding the foregoing, Tenant may utilize the loading
dock areas associated with the Building for Tenant parking, subject to applicable City of Hayward parking codes and regulations. Tenants and Tenant’s Parties shall have nonexclusive right to use, in common with other parties occupying the
Project, the parking areas, driveways and other common areas of the Project, subject to such rules and regulations as Landlord may from time to time prescribe, subject to Paragraph 5 hereof. 
  

B.    Limitations.    Tenant shall not permit any unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate from the
Premises or from any portion of the common areas as a result of Tenant’s or any Tenant’s Party’s use thereof; nor take any action which would constitute a nuisance or would unreasonably disturb, obstruct or endanger any other tenants
or occupants of the Building or Project or unreasonably interfere with their use or their respective premises or common areas. Storage outside the Premises of materials, vehicles- or any other items is prohibited. Tenant shall not use or allow the
Premises to be used for any immoral, improper or unlawful purpose, nor shall Tenant cause or maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or suffer the commission of any waste in, on or about the Premises.
Tenant shall not allow any sale by auction upon the Premises, or place any loads upon the floors, walls or ceilings which endanger the structure, or place any harmful substances in the drainage system of the Building or Project. No waste, materials
or refuse shall be dumped upon or permitted to remain outside the Premises except in trash containers placed inside exterior enclosures designated for that purpose by Landlord. Landlord shall not be responsible to Tenant for the non-compliance by
any other tenant or occupant of the Building or Project with any of the above-referenced rules or any other terms or provisions of such tenant’s or occupant’s lease or other contract. 
  

C.    Compliance with Regulations.    By entering the Premises, Tenant accepts the Premises in the condition existing as of the date of such
entry. Tenant shall at its sole cost and expense strictly comply with all existing or future applicable municipal, stale and federal and other governmental statutes, rules, requirements, regulations, laws and ordinances, including zoning ordinances
and regulations, and covenants, casements and restrictions of record governing and relating to the use, Occupancy or possession of the Premises, to Tenant’s use of the common areas, or to the use, storage, generation or disposal of Hazardous
Materials (hereinafter defined) (collectively “Regulations”). Tenant shall at its sole cost and expense obtain any and all licenses or permits necessary for Tenant’s particular use of the Premises. Tenant shall at its sole cost and
expense promptly comply with the requirements of any board of Fire underwriters or other similar body now or hereafter constituted. Tenant shall not do or permit anything to be done in, on, under or about the Project or bring or keep anything which
will in any way increase the rate of any insurance upon the Premises, Building or project or upon any contents therein or cause a cancellation of said insurance or otherwise affect said insurance in any manner. Tenant
 
 

 11 

 
shall indemnify, defend, protect and hold Landlord harmless from and against any loss, cost, expense, damage, reasonable attorneys’ fees or liability arising out of the failure of
‘tenant to comply with any Regulation. Tenant’s obligations pursuant to the foregoing indemnity shall survive the expiration or earlier termination of this Lease. 
  
 Notwithstanding any of the foregoing, Landlord warrants to Tenant that as of the Term Commencement Date, the Premises and any improvements (including, without limitation
the Tenant improvements defined in Paragraph 39.Q to be constructed by Landlord (a) shall be free from material structural defects (b) shall comply with all applicable covenants and restrictions of record, statutes, ordinances, codes rules
regulations orders and requirements including “title 24 of the California Administrative Code and the Americans with Disabilities Act In the event of a breach of the foregoing warranties Landlord shall promptly rectify such breach at its sole
cost and expense. Landlord shall also protect indemnify, defend and hold Tenant harmless form and against any and all liability, loss, suit claims actions, costs and expense (including without limitation attorneys’ tees) arising from any breach
of the foregoing warranties. The provisions of this section shall survive the termination of this Lease. 
  
 Notwithstanding any of the foregoing, Tenant shall not be responsible for making any structural changes to the Premises in order to bring. the Premises into compliance with any Regulations unless (i) such structural changes are
necessitated as a direct result of Tenant’s particular use of the Premises or (ii) the requirements for such changes are triggered as a direct result of any action by Tenant on the Premises. 
  

D.    Hazardous Materials.    As used in this Lease, “Hazardous Materials” shall include, but not be limited to, hazardous,
toxic and radioactive materials and those substances defined as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or other similar designations in any Regulation. Tenant
shall not cause, or allow any of Tenant’s Parties to cause, any Hazardous Materials to be used, generated, stored or disposed of on or about the Premises, the Building or the Project or surrounding land or environment in violation of any
Regulations. Notwithstanding the foregoing, Tenant may handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building, or Project or the
Project of which Tenant becomes aware, whether or not caused by Tenant. Except to the extent covered by Landlord’s indemnification obligations pursuant to Paragraph 8B(6), Tenant shall indemnify, defend, protect and hold Landlord harmless from
and against all liabilities, losses, costs and expenses (including attorney’s and consultant’s fees), demands against all liabilities, losses, costs and expenses (including attorneys’ and consultants’ fees), demands, causes of
action, claims or judgments directly or indirectly arising out of the use, generation, storage, release, or disposal of Hazardous Materials by Tenant or any of tenant’s Parties in, on or about the Premises, the Building or the Project or
surrounding land or environment, which indemnity shall include, without limitation, damages for personal or bodily injury, property damage, damage to the environment Or natural resources occurring on or off Premises, losses attributable to
diminution in value or adverse effects on marketability, the cost of any investigation, monitoring, government oversight, repair, removal, remediation restoration, abatement, and disposal, and the preparation of any closure or other required plans,
whether such action is required or necessary prior to or following the expiration or earlier termination of this Lease. Neither the consent by Landlord to the use, generation, storage, release or disposal of Hazardous Materials nor the strict
compliance by Tenant with all laws pertaining to Hazardous Materials shall excuse Tenant from Tenant’s obligation of indemnification pursuant to this Paragraph 4.D. Tenant’s obligations pursuant to the foregoing indemnity shall survive the
expiration or earlier termination of this Lease. Tenant agrees to provide Landlord with the following (i) a Hazardous Materials Management Plan (“HMMP”) which includes the types and quantities of’ Hazardous Materials used and/or
stored on the Premises, and; (ii) copies of tiny other documents related to Hazardous Materials submitted to the City of Hayward or any other regulatory agencies. 
  
 Landlord shall indemnify defend and hold Tenant its affiliates their respective directors. officers employees and agents harmless from and against any and all claims,
judgements damages penalties fines costs liabilities or losses and attorneys fees arising out of any Hazardous Material in on or about the Project or the Premises which was created handled placed stored used. transported of disposed of by Landlord.
excluding however, any Hazardous Material whose presence was caused by Tenant or its affiliates or their respective agents. Landlord represents and warrants that the attached Compliance and Closure report dated March 14, 1996 (Exhibit C) is
the most recent report obtained by Landlord concerning Hazardous Materials with respect to the Project To the best of Landlord’s knowledge, Landlord is unaware of any presence of any Hazardous Materials on the Project that is in violation of
applicable laws. 
  
 5.    RULES AND REGULATIONS 
  
 Tenant shall faithfully observe and comply with any rules and regulations and any modifications or additions thereto which Landlord may
from time to time prescribe in writing for the purpose of maintaining the proper care, cleanliness, safety, traffic flow and general order of the Premises or the Building or Project, provided that any such rules and regulations and any modifications
or additions thereto shall not unreasonably interfere with Tenant’s use of the Premises. Tenant shall cause Tenant’s Parties to comply with such rules and regulations. Landlord shall not be responsible to Tenant for the non-compliance by
any other tenant or occupant of the Building or Project with any of such rules and regulations, any other tenant’s or occupant’s lease or any Regulations. Notwithstanding any provisions of this paragraph to the contrary. Landlord shall
require all tenants of the Building and Project to comply with the rules and regulations and shall consistently and evenhandedly enforce the rules and regulations. 
  
 6.    RENT 
  
 A.    Base
Rent.    Tenant shall pay to Landlord and landlord shall receive, without notice or demand throughout the Term Base Rent as specified in the Basic Lease Information, payable in monthly installments in advance on or before the
first day of each calendar month, in lawful money of the United States, without deduction or offset whatsoever, at the Remittance Address specified in the Basic Lease Information or to such other place as Landlord may from time to time designate in
writing. Base Rent for the first full month of the Term shall be paid by Tenant upon Tenant’s execution of this Lease11’ the obligation for payment of Base Rent commences on other than the first day or a month, then Base Rent shall be
prorated and the prorated installment shall be paid on the first day of the calendar month next succeeding the Term Commencement Date. The Base Rent payable by Tenant hereunder is subject to adjustment as provided in addenda appended to this Lease
(if referred to in Paragraph 38.A.). As used herein, the terns “Base Rent” shall mean the Base Rent specified in the Basic Lease information as it may be so adjusted from time to time. 
  

B.    Additional Rent.    All monies other than Base rent required to be paid by Tenant hereunder, including, but not limited to, Tenant’s
Proportionate Share of Operating Expenses, as specified in Paragraph 7 of this Lease, the interest and late charge described in Paragraphs 26.C. and D., and any monies spent by Landlord pursuant to Paragraph 30, shall he considered additional rent
(“Additional Rent”). “Rent” shall mean Base Rent and Additional Rent. 
 

 12 

  
 7.    OPERATING EXPENSES 
  
 A.    Operating Expenses.    In addition to the Base Rent required to be paid hereunder, Tenant shall pay the
applicable Tenant’s Proportionate Share of each such Operating Expenses. Landlord and Tenant acknowledge that if’ the number of buildings which constitute the Project increases or decreases, Landlord shall reasonably adjust Tenant’s
Proportionate Share of the Project to reflect the change. Landlord’s determination of Tenant’s Proportionate Share of the Building and of’ the Project shall be conclusive so long as it is reasonably and consistently applied.
“Operating Expenses” shall mean all expenses and costs of every kind and nature which landlord shall pay or become obligated to pay, because of or in connection with the ownership, management, maintenance, repair, preservation,
replacement and operation of’ the Building or Project and its supporting facilities (as determined in a reasonable manner) other than those expenses and costs which are specifically attributable to Tenant or which are expressly made the
financial responsibility of Landlord pursuant to the Lease. Operating Expenses shall include, but are not limited to, the following: 
  
 (1)    Taxes.    All real property taxes and assessments, possessory interest taxes, sales taxes, personal properly taxes, business or license taxes or fees, gross receipts taxes,
service payments in lieu of such taxes or fees, annual or periodic license or use fees, excises, transit charges, and other impositions, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of any kind (including fees
“in-lieu” of any such lax or assessment) which are now or hereafter assessed, levied, charged, confirmed, or imposed by any public authority upon the Building or Project, its operations or the Rent (or any portion or component thereof), or
any tax, assessment or fee imposed in substitution, partially or totally, of any of the above. Operating Expenses shall also include any taxes, assessments, or other fees or impositions with respect to the development, leasing, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion thereof, or upon this transaction or any document creating or transferring an interest in the Premises, but shall exclude any corporate income taxes. In the
event that it shall not be lawful for Tenant to reimburse Landlord for all or any part of such taxes, the monthly rental payable to Landlord under this Lease shall be revised to net Landlord the same net rental after imposition of any such taxes by
Landlord as would have been payable to Landlord prior to the payment of any such taxes. 
  
 (2)    Insurance.    All insurance premiums and costs, including, but not limited to, any deductible amounts, premiums and other costs of insurance incurred by Landlord for the
insurance coverage set forth in Paragraph 8.A. herein. 
  
 (3)    Common Area Maintenance 

 
 (a)    Repairs, replacements, and general maintenance of and for the Building and Project and public
and common areas of the Building and Project, including, but not limited to, the roof, pest extermination, landscaped areas, parking and service areas, driveways, truck staging areas, fire sprinkler systems, sanitary and storm sewer lines, utility
services, electric and telephone equipment and wiring servicing, exterior lighting, and any other items or areas which affect the operation or exterior appearance of the Building or Project, which determination shall be at Landlord’s reasonable
discretion, except for: those items expressly made the financial responsibility of Landlord pursuant to Paragraph 10 hereof; those items to the extent paid for by the proceeds of insurance; and those items attributable solely or jointly to specific
tenants of the Building or Project. 
  
 (b)    Repairs, replacements, and general
maintenance shall include the cost of any capital improvements made to or capital assets acquired for the Project or Building that in Landlord’s reasonable discretion may reduce any other Operating Expenses, including present or future repair
work, are reasonably necessary for the health and safety of the occupants of the Building or Project, or are required under any governmental law or regulation, such costs or allocable portions thereof to be amortized over the useful live of such
items together with interest on the unamortized balance at the “prime rate” charged by Wells Fargo Bank, N.A. (San Francisco) or its successor at the time such improvements or capital assets are constructed or acquired, plus two (2)
percentage points, but in no event more than the maximum rate permitted by law. 
  
 (c)    Payment under or for any easement, license, permit, operating agreement, declaration, restrictive covenant or instrument relating to the Building or Project. 
  
 (d)    All expenses related to services and costs of supplies and equipment used in maintaining the Premises,
Building and Project, the equipment therein and the adjacent sidewalks, driveways, parking and service areas, including, without limitation, expenses related to service agreements regarding security and fire and other alarm systems, janitorial
services to the extent not addressed in Paragraph 1 l hereof, window cleaning, elevator maintenance, Building exterior maintenance, landscaping and expenses related to the administration, management and operation of the Project, including without
limitation salaries, wages and benefits. 
  
 (4)    Utilities.    The cost of
supplying any utilities which benefit all or a portion of the Premises or the common areas of the Building or Project to the extent not addressed in Paragraph 15 hereof. 
  
 (5)    Management Fee.    A management and accounting cost recovery fee equal to three percent (3%) of the sum of Base Rent and Tenant’s
Proportionate Share of Operating Expenses. 
  
 In the event that the Building and/or Project is not fully occupied
during any fiscal year of the Term as determined by Landlord, an adjustment shall be made in computing the Operating Expenses for such year so that Tenant pays an equitable portion of all variable items (i.e. Component expenses that are affected by
variations in occupancy levels) of Operating Expenses, as reasonably determined by Landlord; provided, however, that in no event shall Landlord be entitled to collect in excess of one hundred percent (100%) of the total Operating Expenses from all
of the tenants in the Building of Project, as the ease may be. 
  
 Notwithstanding anything to the contrary contained
herein the following shall not he included in the Operating Expenses referred to herein (I) leasing commissions attorneys’ fees, cost, disbursements and other expenses incurred in connection with negotiations or disputes with tenants or in
connection with leasing; renovating;. or improving space for tenants or other occupants or prospective tenants or other occupants of the Building or Project: (2) the cost of any service sold to any tenant (including Tenant) or other occupant for
Which Landlord is entitled to be reimbursed as an additional charge or rental over and above the basic rent and escalations payable under the lease with that tenant (3) any depreciation on the Building (4) except as otherwise set forth in Paragraph
7A(3)(b) costs of a capital nature including but not limited to capital improvements and alterations capital repairs capital equipment and capital tools as determined in accordance with generally accepted accounting principles: (5) overhead profit
increments paid to Landlord’s subsidiaries or affiliates for management or other services on or to the Building or Project or for supplies or other materials to the extent that the cost of the services supplies or materials exceeds the cost
that would have been paid had the services supplies. or materials been provided h1 unaffiliated parties on a competitive basis (6) all interest loan fees and other carrying costs related to any mortgage to
 
 

 13 

 
deed of trust or related to any capital item and all rental and other payments due under any ground or underlying lease, or any lease liar any equipment ordinarily considered to be of a capital
nature (except janitorial equipment which is not affixed to the Building): (7) any compensation paid to clerks attendants or other persons in commercial concessions operated by Landlord: (8) advertising and promotional expenditures (9) costs of
repair and other work occasioned by lire, windstorm or other casually which are covered by insurance (or would have otherwise been covered but for Landlord’s failure to carry insurance required under this(Lease): (10) any costs, lines or
penalties incurred due to violations by Landlord of any governmental rule or authority, this Lease or any other lease in. the Project or on the land upon which the Premise are located or due to Landlord’s negligence or willful misconduct: (11)
costs for sculpture, paintings or other objects of art (nor insurance thereon or extraordinary security in connection therewith); (12) wages, salaries, or other compensation paid to any executive employees above the grade of building manager; (13)
the cost of correcting any building code or other violations which were violations prior to the Term Commencement Date (14) the cost of containing, removing, or otherwise remediating tam, contamination of the Building or project (including the
underlying land and groundwater) by any toxic or Hazardous Materials (including, without limitation, asbestos and “PCB’s”) where such contamination was not caused by Tenant; (15) Landlord’s taxes not constituting taxes payable as
Operating Expenses pursuant to Paragraph 7A(1) (16) any increase on more than one (1) occasion in real property assessments on the land on which the Premises are located as a result of reassessment under Proposition 13, and: (17) any other expenses
that antler generally accepted accounting principles and practice consistently applied would not be considered a normal maintenance or operating expense. 
  
 Notwithstanding anything herein to the contrary, in any instance wherein Landlord, in Landlord’s reasonable discretion, deems Tenant to be responsible for any amounts greater than Tenant’s
Proportionate Share, Landlord shall have the right to allocate costs in any reasonable manner Landlord deems appropriate. 
  
 The above enumeration of services and facilities shall not be deemed to impose an obligation on Landlord to make available or provide such services or facilities except to the extent Landlord has specifically agreed elsewhere in this
Lease to make the same available or provide the same. Without limiting the generality of the foregoing, Tenant acknowledges and agrees that it shall be responsible for providing adequate security for its use of the Premises and Project and that
Landlord shall have no obligation or liability with respect thereto, except to the extent Landlord has specifically agreed elsewhere in this Lease to provide the same. 
  
 B.    Payment of Estimated Operating Expenses.    “Estimated Operating Expenses” for any particular year shall mean Landlord’s reasonable
estimate of the Operating Expenses for such fiscal year made with respect to such fiscal year as hereinafter provided. Landlord shall have the right from time to time to revise its fiscal year and interim accounting periods so long as the periods as
so revised are reconciled with prior periods in a reasonable manner. During the last month of each fiscal year during the Term, or as soon thereafter as practicable, Landlord shall give Tenant written notice of the Estimated Operating Expenses for
the ensuing fiscal year. Tenant shall pay Tenant’s Proportionate Share of the Estimated Operating Expenses with installments of Base Rent for the fiscal year to which the Estimated Operating Expenses applies in monthly installments on the first
day of each calendar month during such year, in advance. If at any time during the course of the fiscal year, Landlord determines that Operating Expenses are projected to vary from the then Estimated Operating Expenses by more than ten percent
(10%), Landlord may, by written notice to Tenant, revise the Estimated Operating Expenses for the balance of such fiscal year, and Tenant’s monthly installments for the remainder of such year shall be adjusted so that by the end of such fiscal
year Tenant has paid to Landlord Tenant’s Proportionate Share of the revised Estimated Operating Expenses for such year. 
  
 C.    Computation of Operating Expense Adjustment.    “Operating Expense Adjustment” shall mean the difference between Estimated Operating Expenses and actual Operating
Expenses for any fiscal year determined as hereinafter provided. Within one hundred twenty (120) days after the end of each fiscal year, Landlord shall deliver to Tenant a statement of actual Operating Expenses for the fiscal year just ended,
accompanied by a computation of Operating Expense Adjustment. If such statement shows that Tenant’s payment based upon Estimated Operating Expenses is less than Tenant’s Proportionate Share of Operating Expenses, then (provided that Tenant
is not in default beyond the expiration of any applicable cure period under this Lease) Landlord shall pay to Tenant the difference within twenty (20) days after delivery of such statement to Tenant. If this Lease has been terminated or the Term
hereof has expired prior to the date of such statement, then the Operating Expense Adjustment shall be paid by the appropriate party with twenty (20) days after the date of delivery of the statement. Should this Lease commence or terminate at any
time other than the first day of the fiscal year, Tenant’s Proportionate Share of the Operating Expense Adjustment shall be prorate by reference to the exact number of calendar days during such fiscal year that this Lease is in effect.

  
 D.    Net Lease.    This shall be a triple net Lease and Base Rent shall be paid to
Landlord absolutely net of all costs and expenses, except as specifically provided to the contrary in this Lease. The provisions for payment of Operating Expenses and the Operating Expense Adjustment are intend to pass on to Tenant and reimburse
Landlord for all costs and expenses of the nature described in Paragraph 7.A. incurred in connection with the ownership, management, maintenance, repair, preservation, replacement and operation of the Building and/or Project and such additional
facilities now laid in subsequent years as may be reasonably determined by Landlord to be necessary to the Building anti/or Project. 
  
 E.    Tenant Audit.    In the event that Tenant shall dispute the amount set forth in any statement provided by Landlord under Paragraph 7.B. or 7.C. above, Tenant shall have the right,
not later than thirty (30) days following receipt of Such statement and upon the condition that Tenant shall first deposit with Landlord the full amount in dispute, to cause Landlord’s books and records with respect to Operating Expenses for
such fiscal year to be audited by certified public accountants selected by Tenant and subject to Landlord’s reasonable right of approval. The Operating Expense Adjustment shall be appropriately adjusted on the basis of such audit. If such audit
discloses a liability for a refund in excess of ten percent (10%) of Tenant’s Proportionate Share of the Operating Expense Adjustment previously reported, the cost of such shall be borne by Landlord; otherwise the cost of such audit shall be
paid by 
 

 14 

  
 Notwithstanding anything to the contrary in this Lease, Landlord shall indemnify, defend by counsel
reasonably acceptable to Tenant, protect and hold Tenant harmless from and against any and all claims, liabilities, losses, costs, damages, injuries or expenses, including reasonable attorneys’ Ices and court costs, to the extent arising out of
or related to the sale negligence or willful misconduct of Landlord or Landlord’s employees agents contractors or representatives (collectively “Landlord’s Parties”) claims arising from any breach or default on the part of
Landlord of this Lease and: any claims or causes of action arising prior to the Term Commencement Date. Tenant shall indemnity, defend by counsel reasonably acceptable to Landlord, protect and hold Landlord harmless from and against any and all
claims, liabilities, losses, costs, loss of rents, liens, damages, injuries or expenses, including reasonable attorneys’ fees and court costs, arising out of or related to: (1) claims of injury to or death of persons or
damage to property occurring or resulting directly or indirectly from the use or occupancy of [he Premises by Tenant or Tenant’s Parties, or front activities of tenant or Tenant’s Parties; (2) claims arising from work or labor performed,
or for materials or supplies furnished to or at the request of Tenant in connection with performance of any work done for the account of Tenant within the Premises or Project; (3) claims arising from any breach or default on the part of’ Tenant
in the performance of any covenant contained in this Lease; and (4) claims arising from the negligence or willful misconduct Tenant or Tenant’s Parties. The foregoing indemnity by Tenant shall not be applicable to claims to the extent arising
from the negligence or willful misconduct of Landlord. The provisions of this Paragraph shall survive the expiration or earlier termination of this Lease. 
  
 9.    WAIVER OF SUBROGATION 
  
 To the
extent permitted by law and without affecting the coverage provided by insurance to be maintained hereunder or any other rights or remedies, Landlord and Tenant each waive any right to recover against the other for: (a) damages for injury to or
death of persons; (b) damages to property, including personal property; (c) damages to the Premises or any part thereof; and (d) claims arising by reason of the foregoing due to hazards covered by insurance to the extent of proceeds recovered
therefrom. This provision is intended to waive fully, any rights and/or claims arising by reason of the foregoing, but only to the extent that any of the foregoing damages and/or claims referred to above are covered, and only to the extent of such
coverage, by insurance actually carried by either Landlord or Tenant. This provision is also intended to waive fully, and for the benefit of each party, any rights and/or claims which might give rise to a right of subrogation on any insurance
carrier. Subject to all qualifications of this Paragraph 9, Landlord waives its rights as specified in this Paragraph 9 with respect to any subtenant that it has approved pursuant to Paragraph 21 but only in exchange for the written waiver of such
rights to be given by such subtenant to Landlord. Each party shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against either party in connection with any damage
covered by any policy. 
  
 10.    LANDLORD’S REPAIRS AND MAINTENANCE 
  
  Landlord shall at Landlord’s expense maintain in good repair, reasonable wear and tear excepted, the structural soundness of
the roof (structural and membrane), foundations, and exterior walls or the Building. The term “exterior walls” as used herein shall not include windows, glass or plate glass, doors, duck bumpers or duck plates, special store fronts or
office entries. Landlord shall perform on behalf of Tenant and other tenants of ills project tale maintenance of the public and common areas of the Project including, but not limited to the landscaped areas parking areas driveways the truck staging
areas, fire sprinkler systems, sanitary and storm sewer lines, utility services, electric and telephone equipment servicing the Buildings(s) exterior lighting and anything which effects the operation and exterior appearance of the Project, which
determination shall be at Landlord’s sole discretion. Tenant shall reimburse Landlord for all such costs in accordance with Paragraph 7. Any damage caused by or repairs necessitated by any act of tenant or Tenant’s Parties may be repaired
by Landlord Lit Landlord’s option and Tenant’s expense. Tenant shall immediately give landlord written notice of any defect or need or repairs in such components of’ the Building tiller which Landlord shall have a reasonable
opportunity and the right to enter the Premises at alt reasonable tines with one (1) business day’s notice to repair same. Landlord shall use reasonable efforts to minimize any interference caused to Tenant as a result of any such repairs and
entry. Landlord’s liability with respect to any defects repairs, or maintenance for which Landlord is responsible under any of the provisions of this Lease shall be limited to the cost of such repairs or maintenance, and there shall be no
abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of repairs, alterations or improvements in or to any portion of the Premises or Project or to fixtures,
appurtenances or equipment in the Building, except as provided in Paragraph 24 and 8B(6). 
  
 11.    TENANT’S REPAIRS AND MAINTENANCE 
  
 Except as provided in
Paragraph 10, Tenant shall at all times during the Term at Tenant’s expense maintain all parts of the Premises in good repair, reasonable wear and tear and event of casualty excluded and promptly make all necessary repairs and replacements, as
reasonably determined by Landlord, including but not limited to, all windows, glass, doors, walls, including demising walls, and wall finishes, floors and floor covering, heating, ventilating and air conditioning systems, ceiling insulation, truck
doors, hardware, dock bumpers, dock plates and levelers, plumbing work and fixtures, downspouts, entries, skylights (glass but not frame), electrical and lighting systems, and fire sprinklers, with materials and workmanship of substantially the same
character, kind and quality as the original. Tenant shall, at Tenant’s own expense, enter into a regularly scheduled preventative maintenance/service contract with a maintenance contractor for servicing all hot water, heating and air
conditioning systems and equipment (“HVAC”) within or serving the Premises. The maintenance contractor and the contract must be approved by Landlord, which approval shall not be unreasonably withheld or delayed. The service contract must
include all reasonable and customarily obtained services suggested by the equipment manufacturer within the operation/maintenance manual and must become effective and a copy thereof delivered to Landlord within thirty (30) days after the Term
Commencement Date. Landlord may, upon notice to Tenant, enter into such a service contract on behalf of Tenant or perform the work and in either case charge Tenant the cost thereof along with a reasonable amount for Landlord’s overhead.
Notwithstanding anything to the contrary contained herein, Tenant shall, at its expense, promptly repair any damage to the Premises or the Building or Project resulting from or caused by any act or Tenant or Tenant’s Parties. Notwithstanding
anything to the contrary contained herein Tenant may elect to maintain the HVAC equipment which specifically services Tenant’s laboratory operations. 
  
 12.    ALTERATIONS 
  
 A.    Tenant
shall not make, or allow to be made, any alterations, physical additions, improvements or partitions, including without limitation the attachment of any fixtures or equipment, in, about or to the Premises but excluding the Tenant improvements
(collectively “Alterations”), without obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed with respect to proposed Alterations which: (a) comply with all applicable Regulations; (b)
are, in Landlord’s reasonable opinion, compatible with the Project and its mechanical,
 
 

 15 

 
plumbing, electrical, heating/ventilation/air conditioning systems; and (c) will not unreasonably interfere with the use and occupancy or any other portion of the Building or Project by any other
tenant or its invitees. Notwithstanding the foregoing, in addition to being permitted to complete without any further right of approval by Landlord, all the Tenant Improvements to be constructed with respect to the entire Premises. Tenant shall have
the right to _make any non-structural Alteration, the cost of which shall not exceed $0,000 or in the case of HVAC electrical and plumbing work $25.000, without first obtaining Landlord’s consent, provided that Tenant give Landlord written
notice of Tenant’s intent to make such Alteration. Specifically, but without limiting the generality of the foregoing, with retard to any other Alteration which exceeds $10,000 in cost or $25,000 involving HVAC, electrical and plumbing work.
Landlord shall have the right of written consent, which consent shall not be unreasonably withheld or delayed, for all plans and specifications for the proposed Alteration, construction means and methods, all appropriate permits and licenses, any
contractor or subcontractor to be employed on the work of such Alteration, and the time for performance of such work, and may impose reasonable rules and regulations for contractors and subcontractors performing such work. Tenant shall also supply
to Landlord any documents and information reasonably requested by Landlord in connection with Landlord’s consideration of a request for approval hereunder. Tenant shall cause all Alterations to be accomplished in a good and workmanlike manner,
and to comply with all applicable Regulations. Tenant shall at Tenant’s sole expense, perform any additional work required under applicable Regulations due to the Alterations hereunder. No consent by Landlord to any proposed Alteration or
additional work shall constitute a waiver of tenant’s obligations under this Paragraph 12. Tenant shall reimburse Landlord for all reasonable costs which Landlord may incur in connection with granting approval to Tenant for any such
Alterations, including any reasonable costs or expenses which Landlord may incur in electing to have outside architects and engineers review said plans and specifications. All such Alterations shall remain the property of Tenant until the expiration
or earlier termination of this Lease, at which time they shall be and become the property of Landlord if Landlord so elects; provided, however, that Landlord may, at Landlord’s option, require that Tenant, at Tenant’s expense, remove any
or all Alterations made by Tenant, provided that each such Alteration exceeds $10.000 in cost. or $25,000 involving HVAC, electrical and plumbing work, and restore the Premises by the expiration or earlier termination of this Lease, to their
condition existing prior to the construction of any such Alterations. All such removals and restoration shall be accomplished in a good and workmanlike manner so as not to leave any damage to the Premises or Project whatsoever. If Tenant fails to
remove such Alterations or Tenant’s trade Fixtures or furniture, landlord may keep and use them or remove any of them and cause them to be stored or sold in accordance with applicable law at Tenant’s sole expense. In addition to and wholly
apart from Tenant’s obligation to pay Tenant’s Proportionate Share of Operating Expenses, Tenant shall be responsible for and shall pay prior to delinquency any taxes or governmental service fees, possessory interest taxes, fees or charges
in lieu of any such taxes, capital levies, or other charges imposed upon, levied with respect to or assessed against its personal property Oil the value of Alterations within the Premises, and on Tenant’s interest pursuant to this Lease, or any
increase in tiny of the foregoing bused on such Alterations, provided that Tenant shall have the right to contest such amounts in good faith. To the extent that any such taxes are not separately assessed or billed to Tenant, Tenant shall pay the
amount thereof as invoiced to Tenant by Landlord, provided that Landlord shall provide Tenant with reasonable evidence supporting Landlord’s calculation or such amount. Notwithstanding anything to the contrary contained herein, in Paragraph 36
or elsewhere in the Lease, Tenant (i) shall be permitted, but shall have no obligation, at any time to remove any trade fixtures constructed at any time by or on behalf of Tenant in the Premises, provided that Tenant repairs any damage caused by
such removal and (ii) shall be permitted at any time to remove its personal property and equipment from the Premises, provided that Tenant repairs any damage caused by such removal. 
  
 B.    In compliance with Paragraph 27 hereof, at least ten (10) business days before beginning construction of any Alteration, Tenant shall give Landlord written notice of
the expected commencement date of that construction to permit Landlord to post and record a notice of non-responsibility. Upon substantial completion of construction, Tenant shall cause a timely notice of completion to be recorded in the office of
the recorder of the county in which the Building is located. 
  
 13.    SIGNS 

 
 All signs, notices and graphics of every kind or character, visible in or from public view or corridors, the common areas or
the exterior of the Premises, shall be subject to Landlord’s prior written approval, which Landlord shall have the right to withhold in its reasonable discretion. Tenant shall not place or maintain any banners whatsoever or any window decor in
or on any exterior window or window fronting upon any common areas or service area or upon any truck doors or man doors without Landlord’s prior written approval which Landlord shall have the right to withhold in its reasonable discretion. Any
installation of signs or graphics on or about the Premises or Project shall be subject to any Regulations and to any other requirements imposed by Landlord. “Tenant shall remove all such signs or graphics by the termination of this Lease. Such
installations and removals shall be made in such manner as to avoid injury to or defacement of the Premises, Building or Project and any other improvements contained therein, and Tenant shall repair any injury or defacement including without
limitation discoloration caused by such installation or removal. 
  
 14.    INSPECTION/POSTING NOTICES

  
 Alter reasonable notice, except in emergencies where no such notice shall be required, Landlord and
Landlord’s agents and representatives shall have the right to enter the Premises to inspect the same, to clean, to perform such work as may be permitted or required hereunder, to make repairs or alterations to the Premises or Project, to deal
with emergencies, to post such notices as may be permitted or required by law to prevent the perfection of liens against Landlord’s interest in the Project or to exhibit the Premises to prospective tenants, purchasers, encumbrancers or to
others, or for any other purpose as Landlord may reasonably deem necessary or desirable; provided, however, that Landlord shall use reasonable efforts not to unreasonably interfere with Tenant’s business operations. Tenant shall not be entitled
to any abatement of Rent by reason of the exercise of any such right of entry. At any time within six (6) months prior to the expiration of the Term or following any earlier termination of this Lease or agreement to terminate this Lease, Landlord
shall have the right to erect on the Premises and/or Project a suitable sign indicating that the Premises are available for lease 
  
 15.    UTILITIES 
  
 Tenant shall pay a proportion, as reasonably
determined by Landlord, of all charges jointly serving other premises. Landlord shall not be liable for any damages directly or indirectly resulting from nor shall the Rent or any monies owed Landlord under this Lease herein reserved be abated by
reason of. (a) the installation, use or interruption of use of any equipment used in connection with the furnishing of any such utilities or services; (b) the failure to furnish or delay in furnishing any such utilities or services when such failure
or delay is caused by acts of God or the elements, labor disturbances of any character, or any other ;accidents or other conditions beyond the reasonable control of Landlord; or (c) the limitation, curtailment, rationing or restriction on use of
water, electricity, gas or any other form of energy or any other service or utility whatsoever serving the Premises or Project; except to the extent that any of the foregoing is the result of the negligence or willful misconduct of Landlord or any
of Landlord’s Parties. Landlord shall be entitled to cooperate voluntarily and in a reasonable manner with the efforts of national, state or local
 
 

 16 

 
governmental agencies or utility suppliers in reducing energy or other resource consumption, provided that any such reduction shall not unreasonably interfere with Tenant’s use of the
Premises for its intended purpose. The obligation to make services available hereunder shall be subject to the limitations of any such voluntary, reasonable program. 
  
 16.    SUBORDINATION 
  
 Without the
necessity of any additional document being executed by Tenant for the purpose oh effecting a subordination, the Lease shall be subject and subordinate at all times to: (a) all ground leases or underlying teases which may now exist or hereafter be
executed affecting the premises and/or the land upon which [tie Premises and Project are situated, or both; and (b) any mortgage or deed of’ trust which may now exist or be placed upon the Building, the Project and/or the land upon which the
Premises or the Project are situated, or said ground leases or underlying leases, or Landlord’s interest or estate in any of said items which is specified as security. Notwithstanding the foregoing, Landlord shall have the right to subordinate
or cause to be subordinated any such ground leases or underlying leases or any such liens to this Lease. In the event that any ground lease or underlying lease terminates for any reason or any mortgage or deed of’ trust is foreclosed or a
conveyance in lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any subordination, attorn to and become the Tenant of’ the successor in interest to Landlord and Tenant shall not be disturbed in its possession under this
Lease by such successor in interest so long as Tenant is not in default under this Lease. Within ten (10) business clays alter request b), Landlord, Tenant shall execute and deliver any reasonable additional documents evidencing “tenant’s
attornment or the subordination of this Lease with respect to any such ground leases or underlying leases or any such mortgage or deed of trust, in the form reasonably requested by Landlord or by any ground landlord, mortgage or beneficiary under a
deed of trust, subject to such nondisturbance requirement. If requested in writing, by Tenant Landlord shall use commercially reasonable efforts to obtain n subordination, nondisturbance and attornment agreement for the benefit of Tenant reflecting
the foregoing from any ground landlord, mortgagee or beneficiary at no material cost to Landlord subject to such other reasonable terms and conditions as the ground landlord, mortgage or beneficiary may require. 
  
 17.    FINANCIAL STATEMENTS 
  
 At the request of Landlord Prom time to tune, but not more than twice annually, Tenant shall provide to Landlord Tenant’s current financial statements, which may be in the form of consolidated
statements, or other public information discussing Financial worth of Tenant, which Landlord shall use solely for purposes of this Lease and in connection with the ownership, management, financing Laid disposition of the Project. 

 
 18.    ESTOPPEL CERTIFICATE 
  
 Both parties agree from time to time, within ten (10) days after request of the other party handheld, to deliver an estoppel certificate stating that this Lease is in Full
force and effect, that this Lease has not been modified (or stating all modifications, written or oral, to this Lease), the date to which Rent has been paid, the unexpired portion of this Lease, that there are no current defaults by either party
under this Lease (or specifying any such defaults), and such other matters pertaining to this Lease as may be reasonably requested. Failure by either party to execute and deliver such certificate shall constitute an acceptance of the Premises and
exception. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph maybe relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the Project or any interest therein. The parties agree that
Tenant’s obligation to furnish such estoppel certificates in a timely fashion is a material inducement for Landlord’s execution of the Lease, and shall be an event of default if Tenant fails to fully comply or knowingly makes any material
misstatement in any such certificate. 
  
 20.    TENANT’S REMEDIES 
  
 The obligations and liability of’ Landlord to Tenant for any default by Landlord under the terms of’ this Lease are not personal
obligations of’ Landlord or of the individual or other partners of’ Landlord or its or their partners, directors, officers, or shareholders, and Tenant agrees to look solely to Landlord’s interest in the Project for the recovery of
any amount Prom Landlord, and shall not look to other assets of Landlord nor seek recourse against the assets of’ the individual or other partners of Landlord or its or their partners, directors, officers or shareholders. Any lien obtained to
enforce any such judgment and tiny levy of execution thereon shall be subject and subordinate to any lien, mortgage or deed of trust on the Project. 
  
 21.    ASSIGNMENT AND SUBLETTING 
  
 A    (1) General.    Tenant shall not assign or pledge this Lease or sublet the Premises or any part thereof, whether voluntarily or by operation of law, or permit the use or
occupancy of the Premises or any part thereof by anyone other than Tenant, or permit any such assignment, pledge, subleasing or occupancy, without Landlord’s prior written consent, which shall not be unreasonably withheld, conditioned or
delayed, except as provided herein. If Tenant desires to assign this Lease or sublet any or all of the Premises, Tenant shall give Landlord written notice (the “Transfer Notice”) at least thirty (30) days prior to the anticipated
effective date of the proposed assignment or sublease, which shall contain all of the information reasonably requested by landlord to address Landlord’s decision criteria specified hereinafter, Landlord shall then have a period of thirty (:all)
days following receipt of the Transfer Notice to notify “Tenant in writing that Landlord elects either: (1) to terminate this lease as to the space so affected as of the date so requested by Tenant, provided however, that in the event that
Landlord notifies Tenant that Landlord elects such right of termination Tenant shall have the right to be exercised within ten (10) business days of Tenant’s receipt of such notice from Landlord to retract Tenant’s request for consent to
such proposed assignment or sublease is applicable, in which case this Lease shall continue in full force and effect, as if such request by Tenant had never been made; or (2) to consent to the proposed assignment or sublease, subject, however, to
Landlords prior written consent of the proposed assignee or subtenant and of any related documents or agreements associated with assignment or sublease. If Landlord should fail to notify Tenant in writing of such election within said period,
Landlord shall be deemed to have waived option (1) above, but written consent by Landlord of the proposed assignee or subtenant shall be required. If Landlord does not exercise option (1) above, Landlord’s consent to a proposed assignment or
sublet shall not be unreasonably withheld, conditioned or delayed. 
  
 (2)    Conditions of
Landlord’s Consent.    Without limiting the other instances in which it may be reasonable for Landlord to withhold Landlord’s consent to an assignment or subletting, Landlord and Tenant acknowledge that it shall be
reasonable for Landlord to withhold Landlord’s consent in the following instances: the use of the Premises by such proposed assignee or subtenant would not be a Permitted Use or would violate any exclusivity arrangement which Landlord has with
any other tenant or occupant or would increase the Parking Density of the Building or Project the
 
 

 17 

 
proposed assignee Or subtenant is not of sound financial condition as determined by Landlord in Landlord’s safe reasonable discretion; die proposed assignee or subtenant is a governmental
agency; the proposed assignee Or subtenant does not have a good reputation as a tenant of property; the proposed assignee or subtenant is a person with whom Landlord is negotiating to (case space in the Project or is a present tenant of the or
Tenant is in default of any obligation of-Tenant under this Lease beyond cure periods set Forth in the Lease. Failure by Landlord to consent to a proposed assignee or subtenant shall not cause a termination of this Lease. Upon termination under
Paragraph 21.A.(1), Landlord may lease the Premises to any party, including parties with whom Tenant has negotiated an assignment or sublease, without incurring any liability to Tenant. At the option of Landlord, a surrender and termination of this
Lease shall operate as an assignment to Landlord of some or all subleases or subtenancies. Landlord shall exercise this option by giving notice of that assignment to such subtenants on or before the effective date of the surrender and termination.

  
 B.    Bonus Rent.    Any Rent or other consideration realized by Tenant under any such
sublease or assignment, except for those permitted under Paragraph 21F, in excess of the Rent payable hereunder, alter deducting Tenant’s actual out-of-pocket costs of such assignment or subletting including without limitation Tenant’s
reasonable architectural engineering and legal fees, brokerage commissions free rent or other economic concessions tenant improvements which total costs shall be deducted by Tenant and fully recovered before sharing any rent with Landlord shall be
divided and paid, fifty percent (50%) to Tenant, fifty percent (50%) to Landlord. In any subletting or assignment undertaken by Tenant, Tenant shall diligently seek to obtain the maximum rental amount available in the marketplace for comparable
space available for primary leasing. 
  
 C.    Corporation.    If Tenant is a
corporation, a transfer of corporate shares by sale, assignment, bequest, inheritance, operation of law or other disposition (including such a transfer to or by a receiver or trustee in federal or state bankruptcy, insolvency or other proceedings)
resulting in a change in the present control of such corporation or any of its parent corporations by the person or persons owning a majority of said corporate shares, shall constitute an assignment for purposes or this Lease. 

 
 D.    Unincorporated Entity.    If Tenant is a partnership, joint venture, unincorporated limited
liability company or other unincorporated business form, a transfer of the interest of persons, firms or entities responsible for managerial control of Tenant by sale, assignment, bequest, inheritance, operation of law or other disposition, so as to
result in a change in the present control of said entity and/or a change in the identity of the persons responsible for the general credit obligations of said entity shall constitute an assignment for all purposes or this Lease. 

 
 E.    Liability.    No assignment or subletting by Tenant, permitted or otherwise, shall relieve Tenant
of any obligation under this Lease or alter the primary liability of the Tenant named herein for the payment of Rent or for the performance of any other obligations to be performed by Tenant, including obligations contained in Paragraph 25 with
respect to any assignee or subtenant. Any assignment or subletting which conflicts with the provisions hereof shall be void. 
  
 F.    Permitted Transfers.    Tenant shall be permitted without Landlord’s consent to assign or sublet tiny or all of the Premises to my entity controlling, controlled by or
in common control with Tenant or in connection with any safe of assets, restructuring, merger or consolidation by Tenant provided that such entity has worth adequate to support this Lease in Landlord’s reasonable discretion. In addition a sale
or transfer of the capital stock of-Tenant shall be permitted without Landlord’s consent provided, that (i) such safe or transfer occurs in connection with any bona fide Financing or capitalization for the benefit of Tenant or (ii) Tenant
becomes a publicly traded corporation. 
  
 22.    AUTHORITY 
  
 Landlord represents and warrants that it has full right and authority to enter into this Lease and to perform all of Landlord’s
obligations hereunder and that all persons signing this Lease on its behalf are authorized to do. Tenant represents and warrants that it has full right and authority to enter into this Lease and to perform all of Tenant’s obligations hereunder
and that all persons signing this Lease on its behalf are authorized to do. 
  
 23.    CONDEMNATION

  
 A.    Condemnation Resulting in Termination.    If the whole or any substantial part
of the Project of which the Premises are a part should be taken or condemned for any public use under governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase in lieu thereof, and the taking would prevent or
materially interfere with the Permitted Use of the Premises, this Lease, at Tenant’s option, shall terminate and the Rent shall be abated during the unexpired portion of this Lease, effective when the physical taking on said Premises shall have
occurred. 
  
 B.    Condemnation Not Resulting in Termination.    If a portion of the Project
of which the Premises are a part should be taken or condemned for any public use under governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase in lieu thereof, and this Lease is not terminated as provided in
Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion of the Lease shall be proportionately reduced, beginning on the date when the physical taking shall have occurred, based upon the proportion of the Premises subject to
such taking or condemnation. 
  
 C.    Award.    Landlord shall be entitled to any and
all payment, income, rent, award or any interest therein whatsoever which may be paid or made in connection with such taking or conveyance and Tenant shall have no claim against Landlord or otherwise for the value of any unexpired portion of this
Lease. Notwithstanding the foregoing, any compensation specifically and separately awarded Tenant for Tenant’s personal property, equipment, trade fixtures, the unamortized value of leasehold improvements provided that Landlord’s award
will not be substantially reduced, and moving costs, shall be and remain the property of Tenant. 
  
 D.    Waiver of
CCP§1265.130.    Each party waives the provisions of California Civil Code Procedure Section 1265.130 allowing either party to petition the superior court to terminate this Lease as a result of a partial taking.

  
 24.    CASUALTY DAMAGE 
  
 A.    General.    If the Premises or Building should be damaged or destroyed by fire, tornado, or other casualty (collectively, “Casualty”),
Tenant shall give immediate written notice thereof to Landlord. Within thirty (30) days after landlord’s receipt of such notice, landlord shall notify Tenant whether in Landlord’s reasonable estimation material restoration of the Premises
can reasonably be made either: (I) within ninety (90) days; (2) in more than ninety (90) days but within one hundred eighty (180) days; or (3) in more than one hundred eighty (180) days from the date of such notice and receipt of required permits
for such restoration. Landlord’s determination shall be binding on Tenant. 
 

 18 

  
 B.    Within 90 Days.    If the Premises or Building
should be damaged by Casualty to such extent that material restoration can in landlord’s estimation be reasonably completed within ninety (90) days after the date of such damage and receipt of required permits for such restoration, this lease
shall not terminate. To the extent that insurance proceeds are received by Landlord (or would have otherwise been received by Landlord but for its failure to carry insurance required under this Lease) to repair the damage, Landlord shall proceed to
rebuild and repair the Premises, except that Landlord shall not be required to rebuild, repair or replace any part of the Alterations which may have been placed on or about the Premises by Tenant. If the Premises are untenantable in whole or in part
following such damage, the Rent payable hereunder during the period in which they are untenantable shall be abated proportionately, but only to the extent or rental abatement insurance proceeds received by Landlord (or would have otherwise been
received by Landlord but for its failure to carry insurance required under this lease) during the time and to the extent the Premises are unfit for occupancy. 
  
 C.    Greater than 90 Days.    If the Premises or Building should be damaged by Casualty to such extent that rebuilding or repairs can in Landlord’s estimation be
reasonably completed fn more than ninety (90) days but within one hundred eighty (180) days after the date of such damage and receipt of required permits for such rebuilding or repair, then Landlord shall have the option of either: (1) terminating
this lease effective upon the date of the occurrence of such damage, in which event the Rent shall be abated during the unexpired portion of this Lease; or (2) electing to rebuild or repair the Premises. Notwithstanding the above, landlord shall not
be required to rebuild, repair or replace any part of the Alterations which may have been placed, on or about the Premises by Tenant. If the Premises are untenantable in whole or in part Following such damage, the Rent payable hereunder during the
period in which they are untenantable shall be abated proportionately, but only to the extent of rental abatement insurance proceeds received by Landlord (or would have otherwise been received by landlord but for its failure to carry insurance
required under this lease) during the time and to the extent the Premises are unfit for occupancy. In the event that landlord should fall to complete such repairs and rebuilding within one hundred eighty (180) days after the date upon which Landlord
is notified by Tenant of such damage and receipt of required permits, such period of time to be extended for delays caused by the fault or neglect of Tenant or otherwise by Tenant or because of acts of God, acts of public agencies, labor disputes,
strikes, fires, freight embargoes, rainy or stormy weather, inability to obtain materials, supplies or fuels, or delays of the contractors or subcontractors or any other causes or contingencies beyond the reasonable control of Landlord, Tenant may
at Tenant’s option within ten (10) days after the expiration of such one hundred eighty (180) day period (as such may be extended), terminate this Lease by delivering written notice of termination to landlord as Tenant’s exclusive remedy,
whereupon all rights hereunder shall cease and terminate thirty (30) days after Landlord’s receipt of such termination notice. 
  
 D.    Greater than 180 Days.    If the Premises or Building should be so damaged by Casualty that rebuilding or repairs cannot in landlord’s estimation be completed one hundred
eighty (180) clays after such damage and receipt of required permits for such rebuilding or repair, this lease shall terminate and the Rent shall be abated during the unexpired portion of this lease, effective upon the dale of the occurrence of such
damage. 
  
 E.    Tenant’s Fault.    Notwithstanding anything herein to the contrary, if
the Premises or any other portion of’ the Building are damaged by Casualty resulting From the fault, negligence, or breach of this lease by Tenant or any of Tenant’s Parties, Base Rent and Additional Rent shall not be diminished during the
repair of such damage and Tenant shall be liable to Landlord for the cost and expense of the repair and restoration of the Building caused thereby to the extent such cost and expense is not covered by insurance proceeds. 
  
 G.    Waiver.    This Paragraph 24 shall be Tenant’s sole and exclusive remedy in the event of damage or
destruction to the Premises or the Building as a result of Casualty. As a material inducement to landlord entering into this lease, Tenant hereby waives any rights it may have under Sections 1932 (2), 1933(4), 194-1 or 1942 of the Civil Code of
California with respect to any destruction of the Premises, and Tenant’s right to make repairs and deduct the expenses of such repairs, or under any similar law, statute or ordinance now or hereafter in effect. 
  
 H.    Tenant’s Personal Property.    In the event of any damage or destruction of the Premises or the
Building, under no circumstances shall Landlord be required to repair any injury or damage to, or make any repairs to or replacements of, Tenant’s personal property, unless such damage or destruction shall be the result of the negligence or
willful misconduct of landlord or any of Landlord’s Parties. 
  
 25.    HOLDING OVER

  
 Unless Landlord expressly consents in writing to Tenant’s holding over, Tenant shall be only a Tenant
al, sufferance whether or not Landlord accepts any Rent front Tenant or any other person while Tenant is holding over without Landlord’s written consent. If Tenant shall retain possession of the Premises or any portion thereof (a) with
Landlord’s consent then Tenant shall become a tenant from month to month upon the terms herein specified at a monthly rental equivalent to the then prevailing; monthly Rent payable by Tenant at the expiration of the term or this lease, or (h)
without landlord’s consent following the expiration of this Lease or sooner termination for any reason, then Tenant shall pay to landlord for each day of such retention one hundred fifty percent (150%) of the amount or daily rental as of the
last month prior to the date of expiration or earlier termination. Tenant shall also indemnify, defend, protect and hold landlord harmless from any loss, liability or cost, including reasonable attorneys’ fees, resulting from delay by Tenant in
surrendering the Premises, including, without limitation, any actual damages proven by the succeeding tenant feed to have been suffered as a result of such delay. Acceptance of Rent by Landlord following expiration or earlier termination shall not
constitute a renewal of this lease, and nothing contained in this Paragraph 25 shall waive landlord’s right of reentry or any other right. Additionally, in the event that upon expiration or earlier termination of this Lease, Tenant has not
fulfilled its obligation with respect to repairs and cleanup of lire Premises or any other Tenant obligations as set forth in this Lease, then Landlord shall have the right to perform any such obligations as it deems reasonably necessary at
Tenant’s sole cost and expense, and any time reasonably required by Landlord to complete such obligations shall be considered a period of holding over and the terms of this Paragraph 25 shall apply. The provisions of this Paragraph 25 shall
survive any expiration or earlier termination of this Lease. 
  
 26.    DEFAULT 

 
 A.    Events of Default.    The occurrence of any of the following shall constitute an event of default
on the part of Tenant: 
  
 (1)    Abandonment.    Abandonment of the Premises for a
continuous period in excess of ten (10) business days. Tenant waives any right to notice Tenant may have under Section 1951.3 of the Civil Code of the State of California, the terms of this Paragraph 26.A. being deemed such notice to Tenant as
required by said Section 1951.3. 
 

 19 

  
 (2)    Nonpayment of Rent.    Failure to pay any
installment of Rent or any other amount due and payable hereunder within three (3) business days of Tenant’s receipt of written notice that payment is due. Such notice shall he provided by Landlord to Tenant two (2) times during any 12 month
period provided however, that on the third instance of Tenant’s failure to pay Rent when said payment is due during any 12 month period such nonpayment will constitute a default as defined in this Paragraph 26. 
  
 (3)    Other Obligations.    Failure to perform any obligation, agreement or covenant under this Lease
other than those matters specified in subparagraphs (1) and (2) of this Paragraph 26.A., such failure continuing for thirty (30) days after written notice of such failure. 
  
 (4)    General Assignment.    A general assignment by Tenant for the benefit of creditors. 
  

(5)    Bankruptcy.    The filing of ally voluntary petition in bankruptcy by Tenant, or the filing of an involuntary petition by Tenant’s
creditors, which involuntary petition remains undischarged or unstaved for a period of thirty (30) days. In the event that under applicable law, the trustee in bankruptcy or Tenant has the right to affirm this lease and continue to perform the
obligations of Tenant hereunder, such trustee or Tenant shall, in such time period as may be permitted by the bankruptcy court having jurisdiction, cure all defaults of Tenant hereunder outstanding as of the date of the affirmance of this Lease and
provide to Landlord such adequate assurances as may be reasonably necessary to ensure Landlord of the continued performance of tenant’s obligations under this Lease. 
  
 (6)    Receivership.    The employment of a receiver to take possession of substantially all of Tenant’s assets or the Premises, if such
appointment remains undismissed, undischarged or unstaved for a period of thirty (30) days after the order therefor. 
  
 (7)    Attachment.    The attachment, execution or other judicial seizure of all or substantially all of Tenant’s assets or the Premises, if such attachment or other seizure
remains undismissed, undischarged or unstaved for a period of thirty (30) days after the levy thereof. 
  
 B.    Remedies Upon Default. 
  
 (1)    Termination.    In the event of the occurrence of any event of default, landlord shall have the right to give a written termination notice to Tenant, and on the date specified in
such notice, Tenant’s right to possession shall terminate, and this Lease shall terminate unless on or before such date all Rent in arrears and all reasonable costs and expenses incurred by or on behalf of Landlord hereunder shall have been
paid by Tenant trod all other events of default of this Lease by Tenant at the time existing shall have been fully remedied to the satisfaction of Landlord. At any time after such termination, Landlord may recover possession of the Premises or any
part thereof and expel and remove therefrom Tenant and any other person occupying the same, by any lawful means, and again repossess and enjoy the Premises without prejudice to any of the remedies that landlord may have under this Lease, or at law
or equity by any reason of Tenant’s default or of such termination. Landlord hereby reserves the right to recognize the continued possession of any subtenant. 
  
 (2)    Continuation After Default.    Even though an event of default may have occurred, this Lease shall continue in effect for so long as landlord does
not terminate Tenant’s right to possession under Paragraph 26.B. (1) hereof, and Landlord may enforce all of landlord’s rights and remedies under this Lease and at law or in equity, including without limitation, the right to recover Rent
as it becomes due, and Landlord, without terminating this Lease, may exercise all of the rights and remedies of a landlord under Section 1951.4 of the Civil Code of the Slate of California or any successor code section. Acts of maintenance,
preservation or efforts to lease the Premises or the appointment of a receiver under application of Landlord to protect Landlord’s interest under this Lease or other entry by Landlord upon the Premises shall not constitute an election to
terminate Tenant’s right to possession. 
  
 C.    Damages After Default.    Should
Landlord terminate this Lease pursuant to the provisions of Paragraph 26.13.(1) hereof, Landlord shall have the rights and remedies of a Landlord provided by Section 1951.2 of the Civil Code of the State of California, orally successor code
sections. Upon such termination, in addition to airy other rights and remedies to which Landlord may be entitled under applicable law or at equity, Landlord shall be entitled to recover from Tenant: (1) the worth at the time of award of the unpaid
Rent and other amounts which had been earned at the time of termination, (2) the worth at the time of award of the amount by which the unpaid Rent that would have been earned offer the date of termination until the tune of award exceeds the amount
of such Rent loss that Tenant proves could have been reasonably avoided; and (4) any other amount and court costs reasonably necessary to compensate Landlord for all detriment proximately caused by Tenant’s failure to perform
Tenant’s obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom. The “worth at the time of award” as used in (1) and (2) above shall be computed at the lesser of the “prime
rate,” as announced from time to time by Wells Fargo Bank, N.A. (San Francisco) or its successor, plus five (5) percentage points, or the maximum interest rate allowed by law (“Applicable Interest Rate”). The “worth at the
time of award” as used in (3) above shall be computed by discounting such amount at the Federal Discount Rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1%). 
  
 D.    Late Charge.    In addition to its other remedies, Landlord shall have the right without notice or demand to
add to the amount of any payment required to be made by Tenant hereunder, and which is not paid and received by Landlord on or before the first stay of each calendar month, an amount equal to ten percent (10%) of the delinquency for each month or
portion thereof that the delinquency remains amounts to Landlord under the terms of this Lease shall not be deemed satisfied until such Rent and other amounts have been actually received by Landlord. Notwithstanding anything herein to the contrary,
Tenant shall be given thirty (30) days to pay invoices for amounts owed other than Rent before being assessed a late charge as defined above. 
  
 E.    Remedies Cumulative.    All rights, privileges and elections or remedies of the parties are cumulative and not alternative, to the extent permitted by law and except as otherwise
provided herein. 
 

 20 

  
 27.    LIENS 
  
 Tenant shall at all times keep the Premises and the Project free front liens arising out of or related to work or services performed
materials or supplies furnished or obligations incurred by Tenant or in connection with work made, suffered or done by or on behalf’ of Tenant in or on the Premises or Project, excluding any such lien or any tax lien on the Premises or Project
for sums not vet clue or for sums contested in good faith by Tenant. In tile event that Tenant shall not, within thirty (30) days following the imposition of any such lien, cause tile same to be released of record by payment or posting of a proper
bond, Landlord shall have, in addition to all other remedies provided herein and by law, the right, but not tile obligation, to cause the same to be released by such means as Landlord shall reasonably deem proper, including payment of the claim
giving rise to such lien. All reasonable sums paid by Landlord on behalf of “tenant and all reasonable expenses incurred by Landlord in connection therefor shall be payable to Landlord by Tenant on demand with interest al the Applicable
Interest Rate. Landlord shall have the right al all times to post and keep posted on the Premises any notices permitted or required by law, or which Landlord shall reasonably deem proper, for the protection of’ Landlord, the Premises, the
Project and any other party having an interest therein, from mechanics’ and materialmen’s liens, and Tenant shall give Landlord not less than ten (10) business days prior written notice of the commencement of any work in the Premises or
Project which could lawfully give rise to a claim for mechanics’ or materialmen’s liens to permit Landlord to post and record a timely notice of non-responsibility. 
  
 29.    TRANSFERS BY LANDLORD 
  
 In the event of a sale or conveyance by Landlord of the Building or a forclosure by any creditor of Landlord, the same shall operate to release Landlord from any liability upon any of the covenants or conditions, express or implied,
herein contained in favor of Tenant, to the extent required to be performed after the passing of title to Landlord’s successor-in-interest: In such event, Tenant agrees to look solely to tile responsibility of the successor-in-interest of
Landlord under this lease with respect to the performance of the covenants and duties of “Landlord” to be performed after tile passing of’ title to Landlord’s successor-in-interest. This Lease shall riot be affected by any such
sale and Tenant agrees to attorn to the purchaser or assignee. Landlord’s successor(s)-in-interest shall not have liability to Tenant with respect to the failure to perform any of the obligations of “Landlord,” to tile extent required
to be performed prior to the date such Successor(s)-in-interest beeline tile owner of the Building. 
  
 30.    RIGHT OF LANDLORD TO PERFORM TENANT’S COVENANTS 
  
 All
covenants and agreements to be performed by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any abatement of Rent, except as otherwise provided herein. If Tenant shall fail
to pay any sum of money other than Base Rent, required to be paid by Tenant hereunder or shall fail to perform any other act on Tenant’s part to be performed hereunder, including Tenant’s obligations under Paragraph 11 hereof, and such
failure shall continue for the longer of (a) any applicable cure period and (b) fifteen (15) days after notice thereof by Landlord, in addition to the other rights and remedies of Landlord, Landlord may make any such payment and perform any such act
on Tenant’s part. In tile case of an emergency, no prior notification by Landlord shall be required. Landlord may take such actions without any obligation and without releasing Tenant from any of Tenant’s obligations. All sums so paid by
Landlord and all incidental costs incurred by Landlord and interest thereon at the Applicable Interest Rate, from the date of payment by Landlord, shall be paid to Landlord on demand as Additional Rent. 
  
 31.    WAIVER 
  
 If either Landlord or Tenant waives the performance of any term, covenant or condition contained in this Lease, such waiver shall not be deemed to be a waiver of any subsequent breach of the same or
any other term, covenant or condition contained herein. Tile acceptance of Rent by Landlord shall not constitute a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, regardless of Landlord’s knowledge of
such preceding breach at the time Landlord accepted such Rent. Failure by Landlord to enforce any of tile terms, covenants or conditions of this Lease for any length of time shall not be deemed to waive or decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by either party of any term, covenant or condition contained in this Lease may only be made by a written document signed by such party. 
  
 32.    NOTICES 
  
 Each provision of this Lease or of any applicable governmental laws, ordinances, regulations and other requirements with reference to sending, mailing, or delivery of any notice or the making of any payment by Landlord or Tenant to
the other shall be deemed to be complied with when and if the following steps are taken: 
  
 A.    Rent.    All Rent and other payments required to be made by Tenant to Landlord hereunder shall be payable to Landlord at Landlord’s Remittance Address set forth in the Basic
Lease Information, or at such other address as Landlord may specify from time to time by written notice delivered in accordance herewith. Subject to Paragraph 26A(2), Tenant’s obligation to pay Rent and any other amounts to Landlord under the
terms of this Lease shall not be deemed satisfied until such Rent and other amounts have been actually received by Landlord. 
  
 B.    Other.    All notices, demands, consents and approvals which may or are required to be given by either party to the other hereunder shall be in writing and either personally
delivered, sent by commercial overnight courier, or mailed, certified or registered, postage prepaid, and addressed to the party to be notified at the Notice Address for such party as specified in the Basic lease Information or to such other place
as the party to be notified may from time to time designate by at least fifteen (15) days notice to the notifying party. Notices shall be deemed served upon receipt or refusal to accept delivery. Tenant appoints as its agent to receive the service
craft default notices and notice of commencement of unlawful detainer proceedings the person in charge of or apparently in charge of occupying the Premises at the time. 
 

 21 

  
 33.    ATTORNEY’S FEES 
  
 In any action which Landlord or Tenant brings to enforce its respective rights hereunder, the unsuccessful party shall pay all costs
incurred by the prevailing party including reasonable attorneys’ fees, to be fixed by the court, and said costs and attorneys’ fees shall be a part of the judgment in said action. 
  
 34.    SUCCESSORS AND ASSIGNS 
  
 This lease shall be binding upon and inure to the benefit of Landlord, its successors and assigns, and shall be binding upon and inure to the benefit of Tenant, its successors, and to the extent assignment is approved by Landlord as
provided hereunder, Tenant’s assigns. 
  
 35.    FORCE MAJEURE 
  
 If performance by a party of any portion of this Lease is made impossible by any prevention, delay, or stoppage caused by strikes,
lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes for those items, government actions, civil commotions, (ire or other casualty, or other causes beyond the reasonable control of the
party obligated to perform, performance by that party for a period equal to the period of that prevention, delay, or stoppage is excused. Tenant’s obligation to pay Rent, however, is not excused by this Paragraph 35. 
  
 36.    SURRENDER OF PREMISES 
  
 Subject to Paragraph 12A. Tenant shall, upon expiration or sooner termination of this lease, surrender the Premises to landlord in substantially the same condition as existed on the date Tenant
originally took possession thereof, reasonable wear and tear, damage by event of casualty and repairs and replacements required pursuant to this Lease excepted provided, that Tenant shall have no obligation to remove any of the Tenant Improvements
except as specifically provided in paragraph 38.D of this Lease. Tenant shall remove all of its debris from the Project. At or before the time of surrender, Tenant shall comply with the terms of Paragraph 12.A. hereof with respect to Alterations to
the Premises and all other matters addressed in such Paragraph. If the Premises are not so surrendered at the expiration or sooner termination of this Lease, the provisions of Paragraph 25 hereof shall apply. All keys to the Premises or any part
thereof shall be surrendered to expiration or sooner termination of’ the Term. Tenant shall meet with landlord for a joint inspection of the Premises at the time of vacating. In the event of Tenant’s failure to participate in such joint
inspection for any reason other than landlord’s failure to make itself reasonably available for such inspection, Landlord’s inspection at or alter Tenant’s vacating the Premises shall conclusively be deemed correct for purposes of
determining Tenant’s responsibility for repairs and restoration. 
  
 37.    MISCELLANEOUS

  
 A.    General.    The term “Tenant” or any pronoun used in place thereof
shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their respective successors, executors, administrators and permitted assigns, according to the context hereof. 

 
 B.    Time.    Time is of the essence regarding this Lease and all of its provisions. 

 
 C.    Choice of Law.    This lease shall in all respects be governed by the laws of the State of
California. 
  
 D.    Entire Agreement.    This Lease, together with its Exhibits contains
all the agreements or the parties hereto and supersedes any previous negotiations. There have been no representations made by the Landlord or its agents or understandings made between the parties other than those set forth in this Lease and its
Exhibits. 
  
 E.    Modification.    This Lease may not be modified except by a written
instrument signed by the parties hereto. 
  
 F.    Severability.    If, for any reason
whatsoever, any of the provisions hereof shall be unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect 
  
 G.    Recordation.    Tenant shall not record this Lease or a short form memorandum hereof. 
  
 H.    Examination of Lease.    Submission of this Lease to Tenant does not constitute an option or offer to (case and this Lease is not effective otherwise until
execution and delivery by both Landlord and Tenant. 
  
 I.    Accord and Satisfaction.    No
payment by Tenant of a lesser amount than the total Rent due nor any endorsement on any check or letter accompanying any check or payment of Rent shall be deemed an accord and satisfaction of full payment of Rent, and Landlord may accept such
payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue other remedies. 
  
 J.    Easements.    Landlord may grant easements on the Project and dedicate for public use portions of the Project without Tenant’s consent; provided that no such grant or
dedication shall materially interfere with Tenant’s Permitted Use of the Premises. Upon Landlord’s request, Tenant shall execute, acknowledge and deliver to Landlord documents, instruments, maps and plats necessary to effectuate
Tenant’s covenants hereunder. 
  
 K.    Drafting and Determination
Presumption    The parties acknowledge that this lease has been agreed to by both the parties, that both Landlord and tenant have consulted with attorneys with respect to the terms of this Lease and that no presumption
shall be created against landlord because landlord drafted this lease. Except as otherwise specifically set forth in this lease, with respect to any consent, determination or estimation of Landlord required or allowed in this Lease or requested of
Landlord, landlord’s consent, determination or estimation shall be given or made solely by Landlord in Landlord’s geed faith reasonable opinion, 
  
 L.    Exhibits.    The Exhibits attached hereto are hereby incorporated herein by this reference. 
  
 M.    No Light, Air or View Easement.    Any diminution or shutting u11 of light, air or view by any structure which only be erected on lands
adjacent to or in the vicinity of the Building shall in no way affect this Lease or impose any liability on landlord. 
  
 N.    No Third Party Benefit.    This lease is a contract between landlord and Tenant and nothing herein is intended to create any thief party benefit. 
 

 22 

  
 O.    Quiet Enjoyment.    Upon payment by Tenant oh the
Rent, and upon the observance and performance oh all of the other covenants, terms and conditions on Tenant’s part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Premises for the term hereby demised without
hindrance or interruption by landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to all of the other terms and conditions of this Lease. Landlord shall not be liable for any
hindrance, interruption, interference or disturbance by other tenants or third persons, nor shall Tenant be released from any obligations under this lease because of such hindrance, interruption, interference or disturbance. 
  
 P.    Counterparts.    This Lease may be executed in any number of counterparts, each of which shall be deemed an
original. 
  
 Q.    Multiple Parties.    If more than one person or entity is named herein as
Tenant, such multiple parties shall have joint and several responsibility to comply with the terms of this Lease. 
  
 38.    ADDITIONAL PROVISIONS 
  
 A.    Base Rent
Adjustment.    Base Rent during the term of the Lease shall be adjusted according to the following schedule: 
  
 
	 MONTHS
 
	  	 BASE RENT
 

	 01-02
 	  	 $21,549 per month
 
	 03-18
 	  	 $43,097 per month
 
	 19-36
 	  	 $45,183 per month
 
	 37-54
 	  	 $47,268 per month
 
	 55-72
 	  	 $49,354 per month
 
	 73-90
 	  	 $51,439 per month
 
	 91-108
 	  	 $53,524 per month
 
	 109-120
 	  	 $55,610 per month
 

 
  
 B.    Building Shell.    Landlord shall, at
its sole cost and expense and with no right of reimbursement from Tenant, pay all costs of constructing the building shell and associated site improvements which shall mean the shell of’ the Building and the following items in substantial
accordance with the plans and specifications dated May 22, 1997, by CRI Associates (all of which shall be collectively referred to as the “Building Shell”): 
  

	General: 
 	3825 Bay Center Place, Hayward, California, an approximately 69,512 square foot, single story, tilt-up concrete building. 

 

	Roof Membrane: 
 	The finished roof shall have a new, built-up three ply membrane with a mineral surfaced cap sheet. 
 

 

	Roof Structure: 
 	New roof structure is a panelized system consisting of 1/2” plywood sheathing over open web steel trusses and 3X wood stiffeners. 

 

	Walls: 
 	All exterior walls will be a concrete tilt-up panel with medium texcoat finish with integral color. Colors to be selected by Landlord and consistent throughout the
Project. 
 

 

	Glass: 
 	All window glazing will be single-pane glass. The aluminum storefront system and window glazing color will be selected by the Landlord. 

 

	Floors: 
 	Concrete slab will be 5” thick and wire-mesh reinforced. 
 

 

	Roof Hatch: 
 	The building will have one standard metal roof hatch with access ladder. 
 

 

	Overhead Doors: 
 	All truck dock doors and drive-in doors will be 24 gauge rolled form galvanized steel, painted to be compatible with the building exterior. 

 

	Exit Doors: 
 	Exit doors other than main storefront entries shall be hollow metal, painted to be compatible with the building exterior. 

 

	Fire Protection: 
 	The building shall have a fully automatic, sprinklered fire protection system. 
 

 

	Domestic Water: 
 	The building shall be supplied with a 2” diameter city metered water line. 
 

 

	Electrical: 
 	The building shall be supplied with an electrical transformer. Power will be feed into two interior, gypsum board finished rooms with main electrical service at
2000 AMPS at 277/480V. 
 

 

	Natural Gas: 
 	Natural gas shall be supplied to the exterior wall of the building. 
 

 

	Plumbing: 
 	A sanitary sewer gut line will be provided within the office portion of the building with clean-outs at standard intervals final fit-up and distribution is not
included in the shell construction. 
 

 

	Site Lighting: 
 	Landlord shall provide one dedicated monument sign al a location to be determined by landlord and to be approved by the City of Hayward. Tenant to provide
Tenant’s signage at Tenant’s cost. 
 

 

	Truck Docks: 
 	The truck dock areas shall have concrete paving with concrete retaining walls and guardrails. 
 

 

	Landscaping: 
 	The site shall be professionally landscaped per the City of Hayward Design Guidelines, including a fully automatic irrigation system. 

 

	Shell Warranties: 
 	Landlord shall grant Tenant the benefit of’ any expressed warranties received covering shell construction to the extent that such warranties are assignable.

 

 23 

  
 The Building Shell shall be completed in a good and workmanlike manner and all materials and equipment
incorporated into the Shell (i) will be new and free of defects, (ii) will conform to all applicable laws, ordinances and regulations of the City of Hayward. 
  
 C.    Tenant Improvements.    Tenant will, with the Tenant’s Architect(s), complete plans and specifications for Tenant’s interior improvements. “Tenant
Improvements” shall mean all initial interior improvement work being completed in the entire Premises including both improvements described in the initial Plans and specifications submitted by Tenant to Landlord for approval (“Initial
Improvements”) such plans to he substantially similar to those described on Exhibit B attached hereto as prepared by WHI Architects dated November 26, 1997, as well as improvements to be constructed by Tenant in the balance of the
Premises (“Expansion Improvements”). Tenant Improvements shall include but not be limited to the following: 
  

	 	a)
	 
	Architectural design and structural engineering; 
 

  

	 	b)
	 
	HVAC system, including roof screens and any necessary structural upgrades; 
 

  

	 	c)
	 
	Interior lighting; 
 

  

	 	d)
	 
	Insulation; 
 

  

	 	e)
	 
	Interior walls, partitions and painting; 
 

  

	 	f)
	 
	Plumbing within the Premises; 
 

  

	 	g)
	 
	Floor and wall coverings, if required 
 

  

	 	h)
	 
	Aft electrical distribution panels for Tenant power and lighting, distribution lines and outlets, circuits, switches and related metering and hook-up charges;

 

  

	 	i)
	 
	Water and gas distribution and related metering and hook-up charges; 
 

  

	 	j)
	 
	Telephone switch room, panel, distribution system; 
 

  

	 	k)
	 
	Window coverings, if required; 
 

  

	 	l)
	 
	Fire safety systems; 
 

  

	 	m)
	 
	Restrooms; and, 
 

  

	 	n)
	 
	Any City of Hayward permits or other related agency fees. 
 

  
 Landlord may reasonably disapprove of said plans and specifications within ten (10) business days of receipt thereof for reasons including, but not limited to: location,
distribution and percentage of floor coverings, dropped ceiling, restrooms, plumbing, electrical, and/or mechanical systems which arc inconsistent with the future flexibility of the building only if such items differ front the plan attached as
Exhibit B. All substantive changes to the originally-agreed-upon plans must be approved by Landlord, which approval shall not be unreasonably withheld or delayed. Said originally-agreed-upon plans and specifications to be attached to this lease as
Exhibit B. 
  
 Landlord agrees to contribute One Million Forty Two Thousand Six Hundred Eighty Dollars
($1,042,680.00) as a “Tenant Improvement Allowance” toward the total cost of design, engineering, permits, city and other agency fees, and all other hard and soft costs relating to the construction of the Tenant Improvements. Tenant agrees
to pay for all ‘tenant Improvement costs incurred with Tenant’s approval above Landlord’s maximum contribution of $1,042,680.00. 
  
 Within ten (10) business days after completion of a “Guaranteed Maximum Price” contract between general contractor and Tenant, Landlord agrees to deposit with Tenant the “Tenant
Improvement Allowance”. 
  
 All Tenant Improvements shall be completed in a good and workmanlike manner and all
materials and equipment incorporated into the Tenant Improvements (i) will be new and free of defects, (ii) will conform to all applicable laws, ordinances and regulations of the City of Hayward. 
  

D.    Restoration of Premises.    Landlord and Tenant agree that upon the expiration or earlier termination of this Lease, as the same may be
extended Tenant shall be responsible at its sole cost and expense to restore the portion of the Premises improved by the Expansion Improvements such area shown on Exhibit B attached hereto as the “Expansion Area” to include
approximately thirty percent (30%’) or said area as office space such office space to be located along the glass entry area of the Building, as well as a restroom core. Notwithstanding the above Tenant shall not be responsible for such
restoration if the Expansion Improvements are constructed such that the Expansion Area includes at least thirty percent (30%) office space located along the glass entry area of the Building and a restroom core. 
  
 E.    Renewal Option.    Provided Tenant is not in default of its obligations under this Lease beyond the
expiration or any applicable cure period. Tenant shall have two (2) options, each for a term of five (5) years, to extend this Lease at fair market rent for comparable space in terms of location identity, tenant improvements (specifically excluding
the value of the improvements made by Tenant), age and condition in the Hayward area. In no event will the monthly rental for the renewal period be less than the rental for the last month of the previous term. 
  
 Tenant shall give landlord written notice of its intent to exercise its option at least two hundred forty (240) days prior to the
expiration of the then current lease term. Within fifteen (15) days after Tenant exercises its option to renew, Landlord will provide Tenant with the fair market rent, as determined by Landlord. Tenant shall have fifteen (15) clays from notification
by Landlord of proposed rent to accept or reject Landlord’s market rent. If Tenant does not accept Landlord’s rental figure within the fifteen (15) day period, the parties shall attempt to determine the rent as follows: 

 
 Within ten (10) days after Tenant’s rejection of Landlord’s rent determination, each party hereto shall appoint one
representative who shall be a licensed real estate broker with at least ten (10) years experience in leasing R&D/ Manufacturing space in the County of Alameda to act as an arbitrator. The two (2) arbitrators so appointed shall attempt in good
faith to agree upon the then current rental value for the subsequent five (5) nears for the use to which Tenant is then utilizing the leased Premises pursuant to the terms and conditions of this Lease. 
  
 In the event that the arbitrators are unable to reach agreement upon the rent to be paid for the Premises during any extended term within
sixty (60) days from notification by Landlord to Tenant or Landlord’s rental determination for such extended term either party shall thereafter have the right to terminate discussions with respect to the extension option at any time prior to
any such agreement, and neither purls shall thereafter have any obligation or liability with respect to such extension option. 
  
 F.    Equipment Financing.    Landlord agrees that Tenant shall have the right at its discretion to mortgage hypothecate or convey a security interest in Tenant’s equipment and
personal property within the Premises to a lienholder (each, a “Lienholder” as security for its obligations under
 
 

 24 

 
any equipment lease or other financing arrangement related to the conduct of Tenant’s business, provided that (i) Landlord is not required to execute any documentation or perform any act ill
connection herewith, (ii) no lienholder shall conduct ill sale, public or private of any property on the Premises, (iii) in the event that any Lienholder shall damage the Premises ill removing any such equipment or personal property, such Lienholder
shall agree to repair such damage to the extent necessary to restore the Premises to its condition immediately prior to such removal and (iv) in the event that Lienholder shall fail to remove any such equipment or personal property from the Premises
on or before termination of this Lease, Lienholder shall agree to pay Landlord Rent prorated for the period of time during which such equipment or personal property shall remain on the Premises following such termination. Notwithstanding the
foregoing any rights granted to a Lienholder shall be subject to the rights of any mortgage of Landlord with a secured interest in the property of which the Premises are a part. 
  
 G.    Early Occupancy.    Tenant shall have the right to occupy the Premises thirty (30) days prior to the Scheduled Term Commencement date in order to
move Tenant’s equipment into the Premises. During said Early Occupancy period, Tenant shall be subject to all of the terms and conditions of the Lease, with the exception of the payment of Rent. 
  
 H.    Addenda.    Exhibits A and B attached hereto are hereby incorporated into and made a part of this Lease as
though fully set forth herein. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and the year first above
written. 
  
 
	 Landlord
 
	 
	 Spieker Properties, L.P.
 a California limited partnership
 
	 
	 By:
 	 	 Spieker Properties, Inc., a Maryland corporation, its general partner
 
	 
	  	 	 By:
 
	  	 	 

	  	 	 Its: Senior Vice President
 
	  	 	 

	  	 	 Date: December 1, 1997
 
	  	 	 

	 
	 Tenant
 
	 
	 Rhone-Poulenc Rorer Pharmaceuticals, Inc.
 
	 a Delaware Corporation
 
	 
	  	 	 By:
 
	  	 	 

	  	 	 Its: Senior Vice President
 
	  	 	 

	  	 	 Date:
 
	  	 	 

 
 

 25 

  
 EXHIBIT C 
  
 Copy of Bill of Sale 
  
 THIS BILL OF SALE is entered into this 21st day of June, 2002, by and between AVENTIS PHARMACEUTICALS INC., formerly named Rhone-Poulenc Rorer Pharmaceuticals,
Inc., a Delaware corporation (“API”) and KOSAN BIOSCIENCES, INC., a Delaware corporation (“Kosan”). 
  
 WHEREAS, API and Kosan have entered into an Assignment of Lease dated as of June 21, 2002 (“Assignment”); and 
  
 WHEREAS, in connection with the Assignment, API desires to transfer, convey, assign, and deliver to Kosan all of API’s right,
title and interest in and to the assets described on Exhibit A attached hereto and incorporated by reference herein (“Assets”), and Kosan desires to accept the transfer, conveyance, assignment and delivery thereof. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, API has
bargained, sold, transferred, assigned, set over, and conveyed, and by these presents hereby bargains, sells, transfers, conveys, assigns, sets over, and delivers to Kosan and its successors and assigns the Assets, to have and to hold the Assets by
Kosan, its successors and assigns, to its and their use and behalf forever, free and clear of all liens and encumbrances. 
  
 API hereby represents and warrants to Kosan that API has good and marketable title to the Assets and that it will warrant and defend such title to the Assets against the claims of all persons; that the Assets are free and clear of
all liens, charges and encumbrances; and that API has full right, power and authority to sell the Assets and to make this Bill of Sale. 
  
 This Bill of Sale shall be and become effective as provided in the Assignment. 
  
 IN
WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Bill of Sale on the day and year first above written. 
  
 
	 AVENTIS PHARMACEUTICALS INC.
 
	 
	 By:
 	 	 /s/    CHARLES D.
DALTON        
 

	 Name:
 Title
 	 	 Charles D. Dalton
 VP—Legal/Corporate Development
 
	  
	 Accepted by Kosan this 21st day of June, 2002.
 

 
 

 26 

  
 
	 KOSAN BIOSCIENCES, INC.
 
	 
	 By:
 	 	 /s/    MICHAEL S.
OSTRACH        
 

	 Name:
 Title:
 	 	 Michael S. Ostrach
 President
 

 
 

 27

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