Document:

Real estate lease agreement  for 2061 Challenger Dr, Alameda, CA

 Exhibit 10.9 
  
 MARINA VILLAGE 
 NET OFFICE -TECH LEASE 
 BASIC LEASE INFORMATION 
  
  

					
	 DATE:
	  	 June 6, 2000
	  	 
		
	 LANDLORD:
	  	 ALAMEDA REAL ESTATE INVESTMENTS,

	 	  	 a California limited partnership

		
	 TENANT:
	  	 XENOGEN CORPORATION,

	 	  	a California corporation

  

					
	 	  	 	    	 Lease Reference

	 PREMISES AND BUILDING:
	  	Approximately 21,297 rentable square feet (“rsf”) located at 2061 Challenger Drive, Suite 100, 101 and 103, Alameda, California	    	Paragraph l
			
	 TERM COMMENCEMENT:
	  	June 15, 2000	    	Paragraph 2
			
	 TERM EXPIRATION:
	  	February 28, 2006	    	Paragraph 2
			
	 BASE RENT:
	  	6/15/00—10/31/00 $5,040/month	    	Paragraph 3(a)
	 	  	11/1/00—2/28/01   $31,936/month	    	 
	 	  	  3/1/01—5/31/01   $42,594/month	    	 
	 	  	  6/1/01—5/31/02   $44,298/month	    	 
	 	  	  6/1/02—5/31/03   $46,002/month	    	 
	 	  	  6/1/03—5/31/04   $47,918/month	    	 
	 	  	  6/1/04—5/31/05   $49,835/month	    	 
	 	  	  6/1/05—2/28/06   $51,752/month	    	 
			
	TENANT’S PERCENTAGE SHARE:	  	2,880 rsf / 35,348 rsf = 8.15%, effective at Lease Commencement	    	Paragraph 4(a)
			
	 	  	15,968 rsf / 35,348 rsf = 45.17%, effective November 1, 2000
21,297 rsf / 35,348 rsf = 60.25%, effective March 1, 2001	    	 
			
	 USE:
	  	Office, biotechnology/pharmaceutical research and development including small live animal storage, and related manufacturing and warehousing	    	Paragraph 6
			
	 SECURITY DEPOSIT:
	  	$20,000 (See Addendum)	    	Paragraph 15
			
	 TENANT’S ADDRESS FOR
	  	860 Atlantic Avenue	    	Paragraph 19
	 NOTICES:
	  	Alameda, CA 94501	    	 

					
	LANDLORD’S ADDRESS FOR NOTICES:	  	 	  	Paragraph 19

  

			
	Alameda Real Estate Investments	  	With a Copy To:
	 c/o Vintage Properties
	  	Marina Village
	 Attn:    Joseph R. Seiger
	  	1150 Marina Village Pkwy.
	 	  	Suite 100
	 314 Lytton Avenue, Suite 200
	  	Alameda, CA 94501
	 Palo Alto, CA 94301
	  	Attn: Property Manager

  

					
	EXHIBIT(S) AND ADDENDUM(S):	  	 	  	Paragraph 21

  
 Exhibit A:    Diagram of Premises 
 Exhibit B:    Tenant Improvements

 Exhibit C:    Subordination, Non-Disturbance and Attornment Agreement Addendum 
  
 The provisions of the Lease identified above in the margin are those provisions where
references to particular Basic Lease Information appear. Each such reference shall incorporate the applicable Basic Lease Information. In the event of any conflict between any Basic Lease Information and the Lease, the latter shall control.

  

									
	 TENANT: 
	 	 	 	 LANDLORD: 

			
	 XENOGEN CORPORATION,
	 	 	 	ALAMEDA REAL ESTATE INVESTMENTS,
	a California corporation,	 	 	 	a California limited partnership
				
	By:                                      
                                        
                  	 	 	 	By:	 	 Vintage Alameda Investments, LP
a California limited partnership
operating general partner

	Name:                                     
                                        
             	 	 	 	 	 
	 Title:                                     
                                        
               
	 	 	 	 	 
				
	By: 
                                        
                                        
              	 	 	 	By:	 	 Vintage Properties—Alameda Commercial
a California corporation,
managing general partner

	Name:                                     
                                        
             	 	 	 	 	 
	 Title:                                     
                                        
               
	 	 	 	 	 
					
	 	 	 	 	 	 	By:	 	                                      
                                        
                 
	 	 	 	 	 	 	 Title : President

  

 2 

 MARINA VILLAGE 
 NET OFFICE-TECH LEASE 
  
 THIS LEASE, (“Lease”) dated as of June 6, 2000, for purposes of reference only, is made and entered into by and between ALAMEDA REAL ESTATE INVESTMENTS, a California limited partnership (“Landlord”), and
XENOGEN CORPORATION, a California corporation (“Tenant”). 
  
 WITNESSETH 
  
 1.
Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord for the term of this Lease and at the rental and upon the conditions set forth below, the premises described in the Basic Lease Information and identified on
the diagram attached hereto as Exhibit A (the “Premises”) Landlord and Tenant agree that the amount of rentable square feet as set forth in the Basic Lease Information or, if such amount is an approximation, the final rentable
square feet as determined upon completion of working drawings, shall be binding and conclusive for all purposes of this Lease. Subject to any obligations of Landlord as set forth in an exhibit to this Lease relating to initial improvement of the
premises, Tenant shall accept the premises in its “as-is” condition at the commencement of the term. The premises are located within the building (the “Building”) commonly known as described in the Basic Lease Information.

  
 2. Term. 
  
 (a) The term of this Lease shall commence and, unless sooner terminated as
hereinafter provided, shall end on the dates respectively specified in the Basic Lease Information. If Landlord, for any reason whatsoever, cannot deliver possession of the premises to Tenant at the commencement of the term, this Lease shall not be
void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom, but in that event, subject to any contrary provisions in any agreement with Landlord related to the initial improvement of the premises, rental
shall be waived for the period between commencement of the term and the time when Landlord can deliver possession. If, for any reason beyond Landlord’s reasonable control, Landlord is unable to obtain necessary governmental approvals to
complete and deliver possession of the premises by August 1, 2000 to Tenant, then Landlord or Tenant may, upon notice to the other third party, terminate this Lease and both parties shall be relieved of any and all obligations hereunder. 

 
 (b) Prior to the commencement of the term, Landlord shall complete the
Tenant Improvements to be constructed or installed in the premises pursuant to Exhibit B attached hereto. The Tenant Improvements shall be deemed completed and possession of the premises delivered when Landlord has substantially completed the
Tenant Improvements, subject only to the completion of minor items which do not materially impair the usability of the Tenant Improvements by Tenant, and Tenant shall accept the premises upon notice from Landlord that the Tenant Improvements have
been so completed. 
  

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 3. Rent. 
  

(a) Tenant shall pay to Landlord as rental the amount specified in the Basic Lease Information as the Base Rent, payable in advance on the commencement
of the term and on or before the first day of each and every successive calendar month during the term. If the term commences on other than the first day of a calendar month, the first payment of rent shall be appropriately prorated on the basis of
a 30-day month. The anniversary date for rental increases as set forth in the Basic Lease Information shall be the first calendar day of the month in which the Lease term commenced. If the last day of the term falls on a date other than the last day
of the month, then the term shall be extended so that the last day of the term shall be the last calendar day of the month in which the term would otherwise end. 
  
 (b) Tenant shall pay, as additional rent, all amounts of money required to be paid to Landlord by Tenant under this Lease in
addition to monthly rent, whether or not the same be designated “additional rent”. If such amounts are not paid at the time provided in this Lease, they shall nevertheless be a collectable as additional rent with the next
installment of monthly rent thereafter falling due, but nothing herein contained shall be deemed to suspend or delay the payment of any amount of money at the time the same becomes due and payable hereunder, or limit any other remedy of Landlord.

  
 (c) Tenant hereby acknowledges that late payment by the Tenant
to Landlord of rent and other amounts due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed on Landlord by the terms of any trust deed covering the premises. Accordingly, if any installments of rent or any other sums due from Tenant shall not be received by Landlord when due, then
Tenant shall pay to Landlord a late charge equal to six percent (6%) of such overdue amount. The parties hereby agree that such late charges represent a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by
Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

  
 (d) Any amount due to Landlord, if not paid when due, shall
bear interest from the date due until the date paid at the rate of ten percent (10%) per annum, provided that interest shall not be payable on late charges incurred by Tenant nor on any amounts upon which late charges are paid by Tenant to the
extent such interest would cause the total interest to be in excess of that legally permitted. Payment of interest shall not excuse or cure any default hereunder by Tenant. 
  
 (e) All payments due from Tenant to Landlord hereunder shall be made to Landlord without deduction or offset in lawful money
of the United States of America at Landlord’s address for notices hereunder, or to such other person or at such other place as Landlord may from time to time designate in writing to Tenant. 
  
  

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 4. Taxes and Operating Expenses. 
  
 (a) Tenant shall pay its percentage share, as specified in the Basic Lease Information, of all Property Taxes assessed with
respect to the Building during the Lease term and its percentage share of all Operating Expenses paid or incurred by Landlord during the Lease term. For the purposes hereof, “Property Taxes” shall mean all real property taxes and
assessments or governmentally imposed fees or charges (and any tax levied wholly or partly in lieu thereof) levied, assessed, confirmed, imposed or which have become a lien against the Building (which for the purposes of defining “Property
Taxes” shall include the land underlying the Building), and “Operating Expenses” shall mean: (1) all costs of management, operation, maintenance, and repair of the Building, (2) the cost of all insurance maintained by
Landlord with respect to the Building and (3) the share allocable to the Building of dues and assessments payable under any reciprocal easement or common area maintenance agreements or declaration or by any owners’ associations affecting the
Building. Landlord shall credit against Taxes otherwise payable by Tenant during any tax fiscal year any tax increment reimbursements from the West End Community Improvement District received by Landlord for the same period from secured roll real
property taxes attributable to the Building. 
  
 (b) In the event
the Building is not separately assessed for tax purposes, then the Property Taxes to be paid by Tenant shall be Tenant’s percentage share of the product obtained by multiplying the total of the real property taxes and assessments levied against
the tax parcel of which the Building is a part, less the credit for tax increment reimbursements described above, by a fraction, the numerator of which is the rentable area of the Building and the denominator of which is total rentable area of all
improvements located within the tax parcel of which the Building is a part. 
  
 (c) Tenant shall pay to Landlord each month at the same time and in the same manner as monthly Base Rent  1/12th of Landlord’s estimate of Property Taxes and Operating Expenses for the then current calendar year. Within ninety (90) days after the close of each calendar year, or as soon after such 90-day
period as practicable, Landlord shall deliver to Tenant a statement of actual Property Taxes and Operating Expenses for such calendar year. If on the basis of such statement Tenant owes an amount that is less than the estimated payments for such
calendar year previously made by Tenant, Landlord shall refund such excess to Tenant. If on the basis of such statement Tenant owes an amount that is more than the estimated payments for such calendar year previously made by Tenant, Tenant shall pay
the deficiency to Landlord within thirty (30) days after delivery of the statement. The obligations of Landlord and Tenant under this subparagraph with respect to the reconciliation between estimated payments and actual Property Taxes and Operating
Expenses for the last year of the term shall survive the termination of the Lease. 
  
 5. Other Taxes. Tenant shall pay or reimburse Landlord for any taxes upon, measured by or reasonably attributable to the cost or value of Tenant’s equipment, furniture, fixtures, and other personal
property located in the premises or leasehold improvements made in or to the premises at Tenant’s expense; for any taxes, if any, measured by or reasonably attributable to Tenant Improvements paid for by Landlord or Tenant in excess of $30.00
per square foot; for any taxes, assessments, fees, or charges imposed by any public authority or private community maintenance association upon or by reason of the development, possession, use or occupancy of 

  

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the premises or the parking facilities used by Tenant in connection with the premises; and for any gross receipts tax imposed with respect to the rental
payable hereunder. 
  
 6. Use. 
  
  
 (a) The premises shall be used and occupied by Tenant solely for the use set forth in the Basic Lease Information. Tenant shall, at Tenant’s expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders,
and requirements in effect during the term regulating Tenant’s activities or the use by Tenant of the premises. Tenant shall not use or permit the use of the premises in any manner that will tend to create waste or a nuisance, or which shall
tend unreasonably to disturb other tenants of the Building or adjacent buildings, nor shall Tenant place or maintain any signs on or visible from the exterior of the premises without Landlord’s written consent, or use any corridors, sidewalks,
or other areas outside of the premises for storage or any purpose other than access to the premises. Except as provided in paragraph 6(b) below, Tenant shall not use, keep, or permit to be used or kept on the premises any foul or noxious gas or
substance, nor shall Tenant do or permit to be done anything in and about the premises, either in connection with activities hereunder expressly permitted or otherwise, which would cause a cancellation of any policy of insurance (including fire
insurance) maintained by Landlord in connection with the premises or the Building or which would violate the terms of any covenants, conditions, or restrictions affecting the Building or the land on which it is located. 
  
 (b) Tenant shall strictly comply with all statutes, laws, ordinances, rules,
regulations, and precautions now or hereafter mandated or advised by any federal, state, local or other governmental agency with respect to the use, generation, storage, or disposal of hazardous, toxic, or radioactive materials (collectively,
“Hazardous Materials”). As herein used, Hazardous Materials shall include, but not be limited to, those materials identified in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30,
as amended from time to time, and those substances defined as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “chemicals known to cause cancer or reproductive toxicity,” “radioactive
materials,” or other similar designations in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et
seq., the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et seq., 33 U.S.C. Section 1251 et seq., 42 U.S.C. Section 300(f) et seq., 42 U.S.C. 7401 et seq., California Health and Safety Code Section 25249.5 et seq., California Water
Code Section 13000 et seq., California Health and Safety Code Section 39000 et seq. and any other governmental statutes, ordinances, rules, regulations, and precautions adopted pursuant to the preceding laws or other similar laws, regulations and
guidelines now or hereafter in effect. Tenant shall defend (with counsel approved by Landlord), indemnify and hold Landlord, its trustees, employees and agents, any entity having a security interest in the premises or the Building, and its and their
employees and agents (collectively, “Indemnitees”) harmless from and against, and reimburse the Indemnitees for, all liabilities, claims, costs, damages, and depreciation of property value, including all foreseeable and
unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage, or disposal of Hazardous Materials by Tenant or any person claiming under Tenant, including, without limitation, the cost of any required or
necessary investigation, monitoring, repair, cleanup, or detoxification and the preparation of any closure or 
  

 6 

 
other required plans, whether such action is required or necessary prior to or following the termination of this Lease, as well as penalties, fines and
claims for contribution to the full extent that such action is attributable, directly or indirectly, to the use, generation, storage, or disposal of Hazardous Materials by Tenant or any person claiming under Tenant. Neither the consent by Landlord
to the use, generation, storage, or disposal of Hazardous Materials nor the strict compliance by Tenant with all statutes, laws, ordinances, rules, regulations, and precautions pertaining to Hazardous Materials shall excuse Tenant from Tenant’s
obligation of indemnification set forth above. Tenant’s obligations under this Paragraph 6 shall survive the expiration or termination of this Lease. 
  
 7. Utilities. 
  
 (a) Tenant shall pay for all water, sewer, gas, electricity, heat, cooling, energy, telephone, refuse collection, alarm monitoring services, and other
utility-type services furnished to Tenant or the premises, together with all related installation or connection charges or deposits. Wherever it is practical to do so such services shall be separately metered or charged to Tenant by the provider
thereof and paid for directly by Tenant. To the extent any of the foregoing services are provided by Landlord, Tenant shall reimburse Landlord for all actual out-of-pocket costs incurred by Landlord in connection with the provision of such services
as billed by the provider thereof based on Landlord’s reasonable estimate of the level of Tenant’s use or consumption of such services. Landlord shall bill Tenant for such services as incurred and payment shall be made by Tenant within ten
(10) days after submittal of Landlord’s statement. 
  
 (b)
Landlord shall not be in default hereunder or be liable for any damages directly or indirectly resulting therefrom, and there shall not be any rent abatement, by reason of any interruption or curtailment whatsoever in utility services which is due
to fire, accident, strike, governmental authority, act of God or other causes beyond the reasonable control of Landlord or any temporary interruption in such service which is necessary to the making of alterations, repairs or improvements to the
Buildings or any part of it. 
  
 8. Maintenance, Repairs and
Alterations. 
  
 (a) Subject to the provisions of Paragraph 10
below, and except for damages caused by Tenant, its agents or invitees, Landlord shall keep in good condition and repair the foundations and exterior walls and roof of the Building and all common areas within the Building not leased to tenants.
Tenant expressly waives the benefits of any statute which would otherwise afford Tenant the right to make repairs at Landlord’s expense or to terminate this Lease because of Landlord’s failure to keep the premises or the Building in good
order, condition, and repair. Tenant has the right to seek other remedies at law against Landlord. 
  
 (b) Tenant shall, at Tenant’s expense, maintain the interior portion of the premises (including, but not limited to, all plumbing and electrical
connections, outlets and lightbulbs) in good condition and repair. If Tenant fails to do so, Landlord may, but shall not be required to, enter the premises and put them in the same condition as upon the commencement of the Lease term, and
Landlord’s out-of-pocket costs thereof shall automatically become due and payable as additional rent. Tenant shall be responsible for the provision, at its own expense, of appropriate janitorial service for the premises. Tenant shall also cause
to be maintained, at its 
  
  

 7 

 
expense and in good operating condition and repair, all heat, ventilating, and air conditioning equipment installed in the premises. Provided Tenant is in
default beyond cure periods, if Landlord so elects, Tenant shall retain the services of Landlord or a maintenance company retained by it to perform maintenance of Tenant’s heating, ventilating and air conditioning equipment and shall reimburse
Landlord for the cost thereof upon demand. At the expiration of the term Tenant shall deliver up possession of the premises in good condition and repair, only ordinary wear and tear excepted. 
  
 (c) Tenant shall not, without Landlord’s prior consent, make any
alterations, improvements, or additions in or about the premises. In requesting Landlord’s consent, Tenant shall submit to Landlord complete drawings and specifications describing such work and the identity of the proposed contractor. As a
condition to giving such consent, Landlord may, among other things, require that Tenant remove any such alterations, improvements or additions at the expiration of the term, and restore the premises to their prior condition. Before commencing any
work relating to alterations, additions, or improvements affecting the premises, Tenant shall notify Landlord of the expected date of commencement thereof and of the anticipated cost thereof, and shall furnish such information as shall reasonably be
requested by Landlord substantiating Tenant’s ability to pay for such work. Landlord shall then have the right at any time and from time to time to post and maintain on the premises such notices as Landlord reasonably deems necessary to protect
the premises and Landlord from mechanics’ liens or any other liens. In any event, Tenant shall pay when due all claims for labor or materials furnished to or for Tenant at or for use in the premises. Tenant shall not permit any mechanics’
liens to be levied against the premises for any labor or materials furnished to Tenant or claimed to have been furnished to Tenant or to Tenant’s agents or contractors in connection with work of any character performed or claimed to have been
performed on the premises by or at the direction of Tenant. All alterations, improvements, or additions in or about the premises performed by or on behalf of Tenant shall be done in a first-class, workmanlike manner, shall not unreasonably lessen
the value of the leasehold improvements in the premises, and shall be completed in compliance with all applicable laws, ordinances, regulations, and orders of any governmental authority having jurisdiction thereover, as well as the requirements of
insurers of the premises and the Building. Upon Landlord’s request, Tenant shall remove any contractor, subcontractor, or material supplier from the premises and the Building if the work or presence of such person or entity results in labor
disputes in or about the Building or the Marina Village Project (the “Project”), or damage to the premises, Building or Project. Unless Landlord requires their removal as set forth above, all alterations, improvements or additions
which may be made on the premises shall become the property of Landlord and remain upon and be surrendered with the premises at the expiration of the term; provided, however, that Tenant’s machinery, equipment and trade fixtures, other than any
which may be affixed to the premises so that they cannot be removed without material damage to the premises, shall remain the property of Tenant and may be removed by Tenant provided further Tenant shall be responsible for repairing all damage to
the premises caused by such removal. 
  
 9. Insurance and
Indemnity. 
  
 (a) Tenant shall obtain and maintain during the
term of this Lease comprehensive general liability insurance with combined single limit for personal injury and property damage in a form and with carriers acceptable to Landlord in an amount not less than $1,000,000, and 
  
  

 8 

 
employer’s liability and workers’ compensation insurance as required by law. Tenant’s comprehensive general liability insurance policy shall
be endorsed to provide that (i) it may not be cancelled or altered in such a manner as adversely to affect the coverage afforded thereby without thirty (30) days’ prior written notice to Landlord, (ii) Landlord is named as additional insured,
(iii) the insurer acknowledges acceptance of the mutual waiver of claims by Landlord and Tenant pursuant to subparagraph (b) below, and (iv) such insurance is primary with respect to Landlord and that any other insurance maintained by Landlord is
excess and noncontributing with such insurance. If, in the opinion of Landlord’s insurance adviser, based on a substantial increase in recovered liability claims generally, the specified amounts of coverage are no longer adequate, such coverage
shall be appropriately increased. Prior to the commencement of the term, Tenant shall deliver to Landlord a duplicate of such policy or a certificate thereof to Landlord for retention by it, with endorsements, and at least thirty (30) days prior to
the expiration of such policy or any renewal thereof, Tenant shall deliver to Landlord a replacement or renewal binder, followed by duplicate policy or certificate within a reasonable time thereafter. If Tenant fails to obtain such insurance or to
furnish Landlord any such duplicate policy or certificate as herein required, Landlord may, at its election, without notice to Tenant and without any obligation to do so, procure and maintain such coverage and Tenant shall reimburse Landlord on
demand as additional rent for any premium so paid by Landlord. 
  
 (b) Landlord hereby waives all claims against Tenant, and Tenant’s officers, directors, partners, employees, agents and representatives for loss or damage to the extent that such loss or damage is insured against under any valid and
collectible insurance policy insuring Landlord or would have been insured against but for any deductible amount under any such policy, and Tenant waives all claims against Landlord including Landlord’s officers, directors, partners, employees,
agents, and representatives for loss or damage to the extent such loss or damage is insured against under any valid and collectible insurance policy insuring Tenant or required to be maintained by Tenant under this Lease, or would have been insured
against but for any deductible amount under any such policy. 
  
 (c) As this Lease does not involve the public interest and insurance is available to Tenant which will protect it against such claims, damage, injury or death, Tenant hereby waives all claims against Landlord for damage to any property or
injury to or death of any person in, upon or about the premises or the Building arising at any time and from any cause. Tenant shall hold Landlord harmless from and defend Landlord against all claims (except such as arise from the sole negligence or
willful misconduct of Landlord, its agents, employees or contractors) (i) for damage to any property or injury to or death of any person arising from the use of the premises by Tenant, or (ii) arising from the negligence or willful misconduct of
Tenant, its employees, agents, or contractors in, upon or about those portions of the Building, other than the premises. The foregoing indemnity obligation of Tenant shall include reasonable attorneys’ fees, investigation costs, and all other
reasonable costs and expenses incurred by Landlord from the first notice that any claim or demand is to be made or may be made. The provisions of this Paragraph 9 shall survive the termination of this Lease with respect to any damage, injury, or
death occurring prior to such termination. 
  
  

 9 

 10. Damage or Destruction. 
  
 (a) If during the term the premises are totally or partially destroyed, or any other portion of the Building is damaged in
such a way that Tenant’s use of the premises is materially interfered with, from a risk which is wholly covered by insurance, subject to the availability of insurance proceeds, Landlord shall proceed with reasonable diligence to repair the
damage or destruction and this Lease shall not be terminated; provided, however, that if in the opinion of Landlord’s architect the work of repair cannot be completed in one hundred and eighty (180) days Landlord may at its election terminate
the Lease by notice given to Tenant. 
  
 (b) If during the term
the premises are totally or partially destroyed, or any other portion of the Building is damaged in such away that Tenant’s use of the premises is materially interfered with, from a risk which is not wholly covered by insurance, Landlord may at
its election by notice given to Tenant restore the premises or terminate this Lease. 
  
 (c) In case of destruction or damage which materially interferes with Tenant’s use of the premises, if this Lease is not terminated as above provided, rent shall be abated during the period required for the work
of repair based upon the degree of interference with Tenant’s use of the premises. Except for abatement of rent, Tenant shall have no claim against Landlord for any loss suffered by Tenant due to damage or destruction of the premises or any
work of repair undertaken as herein provided. Tenant expressly waives the provisions of Sections 1932 and 1933(4) of the California Civil Code. 
  
 11. Eminent Domain. If all or any part of the premises shall be taken as a result of the exercise of power of eminent domain, this Lease shall
terminate as to the part so taken as of the date of taking, and in the case of a partial taking, either Landlord or Tenant shall have the right to terminate this Lease as to the balance of the premises by notice to the other within thirty (30) days
after such date if the portion of the premises taken shall be of such extent and nature as substantially to handicap, impede or impair Tenant’s use of the balance of the premises for Tenant’s purposes. In the event of any taking, Landlord
shall be entitled to any and all compensation, damages, income, rent, awards, or any interest therein whatsoever which may be paid or made in connection therewith, and Tenant shall have no claim against Landlord for the value of any unexpired term
of this Lease or otherwise. In the event of a partial taking of the premises which does not result in a termination of this Lease, the monthly rental thereafter to be paid shall be equitably reduced on a square footage basis. Tenant has the right to
seek a separate award. 
  
 12. Assignment and Subletting.

  
 (a) Tenant shall not assign this Lease or any interest herein
or sublet the premises or any part thereof without the prior consent of Landlord, which consent shall not be unreasonably withheld; Tenant shall not hypothecate this Lease or any interest herein or permit the use of the premises by any party other
than Tenant without the prior consent of Landlord, which consent may be withheld by Landlord in its absolute discretion. This Lease shall not, nor shall any interest herein, be assignable as to the interest of Tenant by operation of law without the
consent of Landlord. Any of the foregoing acts without such consent shall be void and shall, at the option of Landlord, terminate this Lease. In connection with each consent requested by Tenant, Tenant shall submit to Landlord the terms of the
proposed transaction, the identity of the 
  
  

 10 

 
parties to the transaction, the proposed documentation for the transaction, current financial statements of any proposed assignee or sublessee and all other
information reasonably requested by Landlord concerning the proposed transaction and the parties involved therein. 
  
 (b) Without limiting the other instances in which it may be reasonable for Landlord to withhold its consent to an assignment or subletting, Landlord and
Tenant acknowledge that it shall be reasonable for Landlord to withhold its consent in the following instances: 
  
 (i) if the proposed assignee or sublessee is a governmental agency; 
  
 (ii) if, in Landlord’s reasonable judgment, the use of the premises by the proposed assignee or sublessee would entail
any alterations which would lessen the value of the leasehold improvements in the premises, or would require increased services by Landlord; 
  
 (iii) if, in Landlord’s reasonable judgment, the financial worth of the proposed assignee or sublessee does not meet the credit standards applied by
Landlord for other tenants under leases with comparable terms; 
  
 (iv) in the case of a subletting of less than the entire premises, if the subletting would result in the division of the premises into more than two subparcels, would create a subparcel of a configuration that is not suitable for normal
leasing purposes, or would require access to be provided through space leased or held for lease to another tenant or improvements to be made outside of the premises; or 
  
 (v) if, at the time consent is requested or at any time prior to the granting of consent, Tenant is in default under the
Lease or would be in default under the Lease but for the pendency of any grace or cure period under Paragraph 13 below. 
  
 (c) If at any time or from time to time during the term of this Lease Tenant desires to sublet all or any part of the premises, Tenant shall give notice
to Landlord setting forth the terms of the proposed subletting and the space so proposed to be sublet. Landlord shall have the option, exercisable by notice given to Tenant within twenty (20) days after Tenant’s notice is given, either to
sublet from Tenant such space at the rental and other terms set forth in Tenant’s notice, or, if the proposed subletting is for the entire premises for a sublet term ending within the last year of the term of this Lease, to terminate this
Lease. If Landlord does not exercise such option, Tenant shall be free to sublet such space to any third party on the same terms set forth in the notice given to Landlord, subject to obtaining Landlord’s prior consent as herein above provided.

  
 (d) As used in this Paragraph 12, the term,
“assign” or “assignment” shall include, without limitation, any sale, transfer, or other disposition of all or any position of Tenant’s estate under this Lease, whether voluntary or involuntary, and whether by
operation of law or otherwise including, any of the following: 
  
 (i) If Tenant is a corporation: (A) any dissolution, merger, consolidation, or other reorganization of Tenant or (B) a sale of more than fifty percent (50%) of the value of the assets of Tenant or (C) if Tenant is a corporation with fewer
than 500 
  

 11 

 
shareholders, sale or other transfer of a controlling percentage of the capital stock of Tenant. The phrase “controlling percentage” means
the ownership of, and the right to vote, stocks possessing at least fifty percent (50%) of the total combined voting power of all classes of Tenant’s stock issues, outstanding and permitted to vote for the election of directors; 
  
 (ii) If Tenant is a trust the transfer of more than fifty percent (50%) of
the beneficial interest of Tenant, or the dissolution of the trust; 
  
 (iii) If Tenant is a partnership or joint venture, the withdrawal, or the transfer of the interest of any general partner or joint venturer or the dissolution of the partnership or joint venture; 
  
 (iv) If Tenant is composed of tenants-in-common, the transfer of interest of
any cotenants or the partition or dissolution of the cotenancy. 
  
 (e) No sublessee (other than Landlord if it exercises its option pursuant to subparagraph (c) above) shall have a right further to sublet, and any assignment by a sublessee of its sublease shall be subject to Landlord’s prior consent
in the same manner as if Tenant were entering into a new sublease. 
  
 (f) In the case of an assignment, one half of all sums or other economic consideration received by Tenant as a result of such assignment shall be paid to Landlord. In the event such consideration is received by Tenant in installments, the
portion of each installment to be paid to Landlord shall be determined by multiplying the installment by a fraction, the numerator of which is the total amount of the foregoing permitted deductions and the denominator of which is the total
consideration receivable by Tenant as a result of such assignment. 
  
 (g) In the case of a subletting, one half of all sums or economic consideration received by Tenant as a result of such subletting shall be paid to Landlord after first deducting (i) the rental due hereunder, prorated to reflect only rental
allocable to the sublet portion of the premises, (ii) the cost of leasehold improvements made to the sublet portion of the premises at Tenant’s cost, amortized over the term of this Lease except for leasehold improvements made for the specific
benefit of the sublessee, which shall be amortized over the term of the sublease, and (iii) the cost of any real estate commissions incurred in connection with such subletting, amortized over the term of the sublease. 
  
 (h) Regardless of Landlord’s consent, no subletting or assignment shall
release Tenant of Tenant’s obligation or alter the primary liability of Tenant to pay the rental and to perform all other obligations to be performed by Tenant hereunder. The acceptance of rental by Landlord from any other person shall not be
deemed to be a waiver by Landlord of any provision hereof Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. In the event of default by any assignee of Tenant or any successor of Tenant in
the performance of any of the teems hereof, Landlord may proceed directly against Tenant without the necessity of exhausting remedies against such assignee or successor. Landlord may consent to subsequent assignments or subletting of this Lease or
amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant, or any successor 

  

 12 

 
of Tenant, and without obtaining its or their consent thereto and such action shall not relieve Tenant of liability under this Lease. 
  
 (i) In the event Tenant shall assign or sublet the premises or request the
consent of Landlord to any assignment or subletting or if Tenant shall request the consent of Landlord for any act that Tenant proposes to do, then Tenant shall pay Landlord’s reasonable attorneys’ fees incurred in connection therewith.

  
 13. Default by Tenant. 
  
 (a) The following events shall constitute events of default under this Lease:

  
 (i) a default by Tenant in the payment of any rent or other
sum payable hereunder for a period of three (3) days after the same is due; 
  
 (ii) a default by Tenant in the performance of any of the other terms, covenants, agreements, or conditions contained herein and, if the default is curable, the continuation of such default for a period of ten (10)
days after notice by Landlord or beyond the time reasonably necessary for cure if the default is of the nature to require more than ten (10) days to remedy, provided that if Tenant has defaulted in the performance of the same obligation one or more
times in any twelve-month period and notice of such default has been given by Landlord in each instance, no cure period shall thereafter be applicable hereunder; 
  
 (iii) the bankruptcy or insolvency of Tenant, any transfer by Tenant in fraud of creditors, assignment by Tenant for the
benefit of creditors, or the commencement of any proceedings of any kind by or against Tenant under any provision of the Federal Bankruptcy Act or under any other insolvency, bankruptcy or reorganization act unless, in the event any such proceedings
are involuntary, Tenant is discharged from the same within sixty (60) days thereafter; the appointment of a receiver for a substantial part of the assets of Tenant; or the levy upon this Lease or any estate of Tenant hereunder by any attachment or
execution; 
  
 (iv) the abandonment of the premises; and

  
 (v) a default by Tenant in the performance of any of the
terms, covenants, agreements, or conditions contained in any other lease or agreement between Landlord and Tenant, including that certain Net Office-Tech Lease dated as of January 15, 1998 between Landlord and Tenant for premises located at 860
Atlantic Avenue, Alameda, California. 
  
 (b) Upon the occurrence
of any event of default by Tenant hereunder, Landlord may, at its option and without any further notice or demand. in addition to any other rights and remedies given hereunder or by law, do any of the following: 
  
 (i) Landlord shall have the right, so long as such default continues, to
give notice of termination to Tenant, and on the date specified in such notice this Lease shall terminate. 
  
 (ii) In the event of any such termination of this Lease, Landlord may then or at any time thereafter, reenter the premises and remove therefrom all
persons and 
  

 13 

 
property and again repossess and enjoy the premises, without prejudice to any other remedies that Landlord may have by reason of Tenant’s default or of
such termination. 
  
 (iii) In the event of any such termination
of this Lease, and in addition to any other rights and remedies Landlord may have, Landlord shall have all of the rights and remedies of a landlord provided by Section 1951.2 of the California Civil Code. The amount of damages which Landlord may
recover in event of such termination shall include, without limitation, (i) the worth at the time of award (computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent)
of the amount by which the unpaid rent for balance of the term after the time of award exceeds the amount of rental loss that Tenant proves could be reasonably avoided, (ii) all reasonable legal expenses and other related costs incurred by Landlord
following Tenant’s default, (iii) all costs incurred by Landlord in restoring the premises to good order and condition, or in remodeling, renovating or otherwise preparing the premises for reletting, and (iv) all costs (including, without
limitation, any brokerage commissions) incurred by Landlord in reletting the premises. 
  
 (iv) For the purpose of determining the unpaid rent in the event of a termination of this Lease, or the rent due hereunder in the event of a reletting of the premises, the monthly rent reserved in this Lease shall be
deemed to be the sum of the rental due under Paragraph 3 above and the amounts last payable by Tenant pursuant to Paragraph 4 above. 
  
 (v) After terminating this Lease, Landlord may remove any and all personal property located in the premises and place such property in a public or
private warehouse or elsewhere at the sole cost and expense of Tenant. 
  
 (c) Even though Tenant has breached this Lease and abandoned the premises, this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to possession, and Landlord may enforce all its rights and
remedies under this Lease, including the right to recover rental as it becomes due under this Lease. Acts of maintenance or preservation, efforts to relet the premises, or the appointment of a receiver upon initiative of Landlord to protect
Landlord’s interest under this Lease, shall not constitute a termination of Tenant’s right to possession. 
  
 (d) The remedies provided for in this Lease are in addition to any other remedies available to Landlord at law or in equity, by statute or otherwise.

  
 14. Default by Landlord. Landlord shall not be in
default unless Landlord fails to perform obligations required of Landlord hereunder within a reasonable time, but in no event later than thirty (30) days after notice by Tenant to Landlord specifying wherein Landlord has failed to perform such
obligation; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance, then Landlord shall not be in default if Landlord commences performance within such 30-day period
and thereafter diligently prosecutes the same to completion. 
  
 15. Security Deposit. On execution of this Lease Tenant shall deposit with Landlord the sum specified in the Basic Lease Information (the “Deposit”). The Deposit shall be held by Landlord as security for the
performance by Tenant of all of the provisions of this Lease. If 
  
  

 14 

 Tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provisions of this
Lease, Landlord may use, apply, or retain all or any portion of the Deposit for the payment of any rent or other charge in default, or the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to
compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of the Deposit, then within ten (10) days after demand therefor Tenant shall Deposit cash with Landlord in an amount
sufficient to restore the Deposit to the full amount thereof, and Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Deposit separate from its general accounts. If Tenant performs all
of Tenant’s obligations hereunder, the Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned, without payment of interest for its use, to Tenant (or, at Landlord’s option, to the last assignee, if
any, of Tenant’s interest hereunder) at the expiration of the term hereof, and after Tenant has vacated the premises. No trust relationship is created herein between Landlord and Tenant with respect to the Deposit. 
  
 16. Estoppel Certificate. 
  
 (a) Tenant shall at any time upon not more than ten (10) days’ prior
notice from Landlord execute, acknowledge and deliver to Landlord a statement certifying (i) that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so
modified, is in full force and effect) (ii) the date to which the rent, security deposit, and other sums payable hereunder have been paid, (iii) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of
Landlord hereunder, or specifying such defaults, if any, which are claimed, and (iv) such other matters as may reasonably be requested by Landlord. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of
the Building. 
  
 (b) Tenant’s failure to deliver such
statement within such time shall be conclusive upon Tenant, (i) that this Lease is in full force and effect, without modification except as may be represented by Landlord, (ii) that there are no uncured defaults in Landlord’s performance, and
(iii) that not more than one month’s rent has been paid in advance. 
  
 (c) If the Landlord desires to finance or refinance the Building, Tenant agrees to deliver to any lender designated by Landlord such financial statements of Tenant as may be reasonably required by such lender. All
such financial statements shall be received by Landlord in confidence and shall be used for the purposes herein set forth. 
  
 17. Subordination. This Lease, at Landlord’s option, shall subordinate to any ground lease, first mortgage, deed of trust, or any other
hypothecation for security now or hereafter placed upon the Building and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. Notwithstanding such
subordination, Tenant’s right to quiet possession of the premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is
otherwise terminated pursuant to its terms. If any first mortgagee, trustee, or ground lessor shall elect to have this Lease prior to the lien of its first mortgage, deed of trust or ground lease, and shall give notice thereof to Tenant, this Lease
shall be deemed prior to such first mortgage, deed of trust, or ground lease, whether this Lease is dated prior to or subsequent to the date of said first mortgage, deed of trust or ground lease or the 
  

 15 

 
date of recording thereof. If any first mortgage or deed of trust to which this Lease is subordinate is foreclosed or a deed in lieu of foreclosure is given
to the first mortgagee or beneficiary, Tenant shall attorn to the purchaser at the foreclosure sale or to the grantee under the deed in lieu of foreclosure; if any ground lease to which this Lease is subordinate is terminated, Tenant shall attorn to
the ground lessor. Tenant agrees to execute any documents required to effectuate such subordination or to make this Lease prior to the lien of any first mortgage, deed of trust or ground lease, as the case may be, or to evidence such attornment.

  
 18. Attorneys’ Fees. If, as a result of any breach
or default in the performance of any of the provisions of this Lease, Landlord uses the services of any attorney in order to secure compliance with such provisions or recovered damages therefor, or to terminate this Lease or evict Tenant, Tenant
shall reimburse Landlord for any and all attorneys’ fees and expenses in such amount as the court may adjudge reasonable, provided that if Tenant shall be the prevailing party in any legal action brought by Landlord against Tenant, Tenant will
be entitled to recover any and all attorneys’ fees and expenses in such amount as the court may adjudge reasonable. 
  
 19. Non-Discrimination. Tenant covenants for itself; its heirs, executors, administrators, and assigns, and all persons claiming under or through
it, and this Lease is made and accepted upon it subject to the condition that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed. religion, sex, marital status, national
origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the Tenant itself, or any person claiming under or through it, establish or permit any such practice or
practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, subtenants, or vendees in the premises. 
  
 20. Notices. All notices, consents, demands, and other communications from one party to the other given pursuant to
the terms of this Lease shall be in writing and shall be deemed to have been fully given when deposited in the United States mail, certified or registered, postage prepaid, and addressed as follows: to Tenant at the address specified in the Basic
Lease Information or to such other place as Tenant may from time to time designate in a notice to Landlord: or, to Landlord at the address specified in the Basic Lease Information, or to such other place and with such other copies as Landlord may
from time to time designate in a notice to Tenant. 
  
 21.
General Provisions. 
  
 (a) This Lease shall be governed by
and construed in accordance with the laws of the state of California. 
  
 (b) The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof 
  
 (c) This Lease contains all agreements of the parties with respect to any matter mentioned herein and only may be modified
in writing signed by the parties. 
  
 (d) No waiver by Landlord of
any provision hereof shall be deemed a waiver of any other provision or of any subsequent breach by Tenant of the same or any other provision. Landlord’s consent to or approval of any act shall not be deemed to render unnecessary the

  
  

 16 

 
obtaining of Landlord’s consent to or approval of any subsequent act by Tenant. The acceptance of rent hereunder by Landlord shall not be a waiver of
any preceding breach by Tenant of any provision hereof, other than the failure of Tenant to pay the particular rent accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent. 
  
 (e) If Tenant remains in possession of the premises or any part thereof after
the expiration of the term with the consent of Landlord, such occupancy shall be a tenancy from month to month at a rental in the amount of two times the last month’s rental during the term, plus all other charges payable hereunder, and upon
all of the terms hereof. 
  
 (f) Subject to the provisions of this
Lease restricting assignment or subletting by Tenant, this Lease shall bind the parties, their personal representatives, successors, and assigns. 
  
 (g) Landlord and Landlord’s agents shall have the right to enter the premises at reasonable times for the purpose of inspecting the same, showing the
same to prospective purchasers, tenants, lenders and other interested parties, and making such alterations, repairs, improvements, or additions to the premises or to the Building as Landlord may deem necessary or desirable. Landlord may at any time
during the last one hundred twenty (120) days of the term place on or about the premises any ordinary “For Lease” sign. Landlord’s access shall be subject to Tenant’s security procedures, except in emergencies. 
  
 (h) Tenant shall not conduct any auction at the premises without
Landlord’s prior consent. 
  
 (i) The voluntary or other
surrender of this Lease by Tenant, the mutual cancellation thereof or the termination of this Lease by Landlord as a result of Tenant’s default shall, at the option of Landlord, terminate all or any existing subtenancies or may, at the option
of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. 
  
 (j) If Tenant is a corporation, each individual executing this Lease on behalf of Tenant represents and warrants that he is duly, authorized to execute and deliver this Lease on behalf of the corporation in accordance
with a duly adopted resolution of the Board of Directors and that this Lease is binding upon the corporation in accordance with its terms. 
  
 (k) The term “Landlord” as used herein means the then owner of the Building and in the event of a sale of the Building the selling owner
shall be automatically relieved of all obligations of Landlord hereunder, except for acts or omissions of Landlord theretofore occurring. 
  
 (l) The term “day” as used herein means a calendar day. 
  
 (m) The obligations of Landlord under this Lease do not constitute personal obligations of the partners, directors,
officers, shareholders, or trustees of Landlord, Tenant shall look solely to Landlord and its assets for the realization of any claims against Landlord and not to the assets of any of the partners of Landlord, and Tenant expressly waives any and all
right to proceed against any of its partners or the officers, directors, trustees, shareholders, agents, or employees of any of such partners, except to the extent of their interest in Landlord. 
  

 17 

 (n) On request by Landlord, Tenant shall furnish Landlord with satisfactory evidence of payment of
Tenant’s business personal property taxes pertaining to the premises and deliver copies of such business personal property tax bills to Landlord. 
  
 22. Exhibits. The exhibits and addendum, if any, specified in the Basic Lease Information are attached to this Lease and by this reference made a
part hereof. 
  
 IN WITNESS WHEREOF, the parties have executed
this Lease on the respective dates indicated below. 
  

									
	 TENANT:
	 	 	 	 LANDLORD:

			
	XENOGEN CORPORATION,
a California limited partnership	 	 	 	ALAMEDA REAL ESTATE INVESTMENTS,
a California corporation
					
	By:	 	/s/ Pamela Reilly Contag	 	 	 	By:	 	Vintage Alameda Investments, LP
a California limited partnership
operating general partner
	 	 	
	 	 	 	 	 	 
	Name:	 	Pamela Reilly Contag	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	Title:	 	CEO and President	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	 	 	By:	 	Vintage Properties – Alameda Commercial,
	 	 	 	 	 	 	a California corporation,
managing general partner
					
	By:	 	 	 	 	 	By:	 	/s/ Joseph R. Seiger
	 	 	
	 	 	 	 	 	

	Name:	 	 	 	 	 	Name:	 	Joseph R. Seiger
	 	 	
	 	 	 	 	 	

	 Title:
	 	 	 	 	 	Title:	 	President
	 	 	
	 	 	 	 	 	

		
	Date of Execution
by Tenant:             	 	Date of Execution
by Landlord:             

  
  

 18 

 EXHIBIT A 
  
 [DIAGRAM OF PREMISES] 
  
  
 EXHIBIT B 
  
 MARINA VILLAGE 
  
 INITIAL IMPROVEMENT OF THE PREMISES. 
  
 1. If, within sixty (60) days following the commencement of the term, Tenant
discovers that any portion of the plumbing, heating, ventilating and air-conditioning system serving the premises which plumbing and other systems are necessary for the occupancy of the premises for normal office (as opposed to fume hoods, animal
storage, manufacturing or other special purposes) are not in good working order and condition, it may so notify Landlord and Landlord shall thereafter promptly cause such plumbing and other systems to be placed in good operating condition and
repair. 
  
 2. (a) Landlord shall reimburse Tenant for up to
$106,485 (the “TI Allowance”) for its out-of-pocket costs incurred in replacing existing carpeting in the premises, painting the interior of the premises and for making other alterations and improvements within the premises (the
“Tenant Improvements”); provided, however, that no portion of the TI Allowance will be funded by Landlord with respect to the portion of the premises that is Suite 103 prior to September 15, 2000 and only if the Deposit has been
timely increased by Tenant in accordance with requirements of Paragraph 15 of the Lease. No portion of the TI Allowance may be applied to pay for the costs of millwork or cabinetry which may be removed by Tenant at the end of the term, furniture or
trade equipment or trade fixtures. All alterations and improvements within the Premises shall be subject to the requirements of Paragraph 8(c) of the Lease. Landlord shall also reimburse Tenant, and not as part of the TI Allowance for costs incurred
by Tenant in connection with the Tenant Improvements to remove Hazardous Materials from the premises existing as of the commencement of the term. 
  
 (b) Landlord shall reimburse Tenant for its out-of-pocket costs incurred in connection with Tenant Improvements within thirty (30) days of Tenant’s
request provided that at the time of such payment: 
  
 (i) Tenant
has delivered to Landlord copies of building permits issued in connection with the Tenant Improvements indicating final inspection has been approved; 
  
 (ii) Tenant has delivered to Landlord unconditional waivers and releases of lien from all parties have established a right to lien, or evidence that all
applicable limitation periods for the filing of mechanics liens have expired without any such liens having been filed; 
  
 (iii) Tenant is not then in default under the Lease; and 
  
 (iv) Tenant delivering copies of invoices and other evidence, reasonably acceptable to Landlord of costs incurred by Tenant. 
  

 19 

 ADDENDUM TO 
 MARINA VILLAGE 
 NET OFFICE—TECH LEASE 
  
 THIS ADDENDUM TO MARINA VILLAGE NET OFFICE—TECH LEASE
(“Addendum”) shall constitute part of that certain Marina Village Net Office—Tech Lease dated as of June 6, 2000 (“Lease”) by and between ALAMEDA REAL ESTATE INVESTMENTS, a California limited partnership
(“Landlord”) and XENOGEN CORPORATION, a California corporation (“Tenant”), for Premises identified as 2061 Challenger Drive, Suites 100, 101 and 103, Alameda, California, and the terms hereof shall for all purposes
be considered part of the Lease and supersede any provisions of the Lease to the contrary. 
  
 1. Amendment of Paragraph 1: Premises. The following language is hereby added at the end of Paragraph 1 of the Lease: 
  
 “During the term, Tenant shall have the right to use, on a non-exclusive basis and at no additional charge, automobile parking at the rate of a
minimum of 3.4 spaces per 1,000 square feet of net rentable area of the premises. In addition, Tenant may install, at Tenant’s expense, exterior signage identifying Tenant on the Building in compliance with the Marina Village signage program.
Tenant acknowledges that two of the suites constituting the Premises are expected to be delivered to Tenant on the following dates: Suite 100 (approximately 13,088 rsf) on November 1, 2000; and Suite 101 (approximately 5,329 rsf) on February 28,
2001. The foregoing expected delivery dates correspond with the termination dates of the leases with the current occupants within such suites. Landlord shall use commercially reasonable efforts to deliver such suites on such dates, but Tenant
acknowledges that such delivery dates are subject to the vacation of the premises by the existing tenants. Tenant acknowledges and agrees that the actual delivery dates and availability of each suite for occupancy hereunder by Tenant may be delayed
or accelerated based on factors beyond Landlord’s control. In the event of a delay in delivery, rent for such suite shall abate until delivery shall have occurred. In the event that any part of the Premises has not been delivered to Tenant on
or before July 1, 2001 for any reason whatsoever, then Tenant, by notice to Landlord prior to full delivery of the Premises, may terminate this Lease as to such part of the Premises not so delivered. Tenant agrees to accept delivery of each of the
foregoing suites upon thirty (30) days’ notice from Landlord. 
  
 2. Amendment of Paragraph 2: Term. 
  
 (a) The
first sentence of Paragraph 2(a) is hereby deleted and the following language is substituted in its place: 
  
 “(a) The term of this Lease shall commence and, unless sooner terminated as hereinafter provided, shall end on the dates respectively specified in
the Basic Lease Information, subject to Tenant’s right to elect to have the term commence prior to June 15, 2000.” 
  
  

 20 

 (b) Paragraph 2(b) is hereby deleted and the following language is substituted in its place: 

 
 “(b) Tenant shall complete any Tenant Improvements to be constructed
or installed in the Premises pursuant to Exhibit B attached hereto. Tenant acknowledges and agrees that Landlord has no obligation to make any alterations or improvements to the Premises hereunder.” 
  
 3. Amendment of Paragraph 3: Rent. 
  
 (a) The third sentence of Paragraph 3(c) of the Lease is hereby deleted and
the following language is substituted in its place: 
  
 “Accordingly, if any installments of rent or any other sums due from Tenant shall not be received by Landlord within three (3) days following the date due, then Tenant shall pay to Landlord a late charge equal to six percent (6%) of
such overdue amount.” 
  
 (b) The first sentence of Paragraph
3(d) of Lease is hereby deleted and the following language is substituted in its place: 
  
 “Any amount due to Landlord, if not paid when due, shall bear interest from the date due until the date paid at the rate of ten percent (10%) per annum.” 
  
 4. Amendment of Paragraph 4: Taxes and Operating Expenses. 

 
 (a) The following language is hereby added to the end of Paragraph 4(a) of
the Lease: 
  
 “Notwithstanding the foregoing,
“Property Taxes” shall not include and Tenant shall not be required to pay any portion of any tax or assessment expense or any increase therein: (i) in excess of any installment of an assessment which otherwise would be required to
be paid at such time; (ii) attributable to Landlord’s net income, inheritance, gift, transfer, estate or estate income taxes; or (iii) the improvement of any portion of the Building for the sole use of other occupants not claiming under Tenant.
“Operating Expenses” shall not include and Tenant shall not have any obligation to perform or to pay for any of the following: (A) costs to operate, maintain or repair occasioned by the willful misconduct, gross negligence or action
in violation of law by Landlord, its agents, employees or contractors; (B) costs of repair or replacement occasioned by casualty, other than deductibles for insured casualties other than earthquakes, or by the exercise of the power of eminent
domain; (C) costs to correct any construction defect in the Building or law applicable to the Building as of the commencement of the term other than as occasioned by alterations or improvements made by or for Tenant; (D) costs incurred in connection
with the presence of any Hazardous Materials as of the commencement of the term; (E) interest, charges and fees incurred on debts, other than assessments, or debt incurred in connection with the financing of Items which are permitted to be charged
as Operating Expenses; or 
  
  

 21 

 (F) costs which could properly be capitalized under generally- accepted accounting principles, except to the extent
amortized over the useful life of the Item in question. Operating Costs shall only include the deductible amount for the repair or reconstruction of casualties covered by earthquake insurance in an amount not to exceed $50,000 (the
“Earthquake Limit”), if the casualty occurs during the first twelve (12) months of the term or during the first twelve (12) months of an Option Period (as defined in Paragraph 17 of the Addendum to this Lease), with the Earthquake
Limit being reduced by $5,000 during each 12-month period thereafter. In addition, Operating Costs shall only include premiums for earthquake insurance in an amount not in excess of four (4) times the then-market rate premium for standard all-risk
casualty insurance on the same property. In addition, Property Taxes and Operating Expenses shall be pro rated for any partial year in which the term shall commence or end. Any annual increase in property management fees which are included as
Operating Expenses shall be limited to three percent (3%) of the amount incurred in the prior year.” 
  
 (b) The third sentence of Paragraph 4(c). of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “If on the basis of such statement, Tenant owes an amount that is less
than the estimated payments for such calendar year previously made by Tenant, Landlord shall refund such excess to Tenant within thirty (30) days following delivery of such statement to Tenant.” 
  
 5. Amendment of Paragraph 5. The following language is hereby added to
paragraph 5 of the Lease, to read as follows: 
  
 “At
Tenant’s request, and at no out of pocket cost to Landlord, Landlord shall cooperate with Tenant in any protest by Tenant of the assessment of property owned by, or improvements to the premises made by, Tenant.” 
  
 6. Amendment of Paragraph 6: Use. 
  
 (a) The third and fourth sentences of Paragraph 6(b) of the Lease are hereby
deleted and the following language is substituted in its place: 
  
 “Tenant shall not cause, or allow anyone else to cause, any Hazardous Materials to be used, generated, stored or disposed of on or about the Premises or the Building in violation of any laws or regulations related to Hazardous
Materials. Tenant shall defend (with counsel approved by Landlord) indemnify and hold Landlord, its and their partners, employees and agents and any entity having a security interest in the premises or the Building and its and their employees and
agents (collectively, “Indemnitees”) harmless from and against, and reimburse the Indemnitees for, all liabilities, claims, costs, damages, and depreciation of property value, including foreseeable and unforeseeable consequential
damages, directly or indirectly arising out of the use, generation, storage or disposal of Hazardous Materials by Tenant or any person employed by or under the control of 
  
  

 22 

 Tenant, including without limitation, the cost of any required or necessary investigation, monitoring, repair, clean-up
or detoxification and the preparation of any closure or other required plans, whether such action is required or necessary prior to or following termination or expiration of this Lease, as well as penalties, fines and claims for contribution to the
full extent that such action is attributable, directly or indirectly, to the use, generation, storage or disposal of Hazardous Materials by Tenant or any person employed by or under the control of Tenant. In no event shall Tenant be liable to any of
the Indemnities for the use, generation, storage or disposal of Hazardous Materials not caused by or resulting from Tenant or any person employed by or under the control of Tenant.” 
  
 (b) The following language is hereby added as Paragraph 6(d) of the Lease: 
  
 “(d) Notwithstanding anything in this Lease to the contrary, Tenant
shall not be required to comply with or cause the premises to comply with any laws, rules or regulations regarding alterations or improvements unless compliance with any of the foregoing is necessitated solely due to the particular nature of
Tenant’s occupancy or Tenant’s particular use of the Premises or in connection with any improvements or alterations to the Premises made by or for Tenant or those under its control.” 
  
 7. Amendment of Paragraph 8: Maintenance, Repairs and Alterations. The
following language is hereby added at the end of Paragraph 8(b) of the Lease: “Tenant’s obligations with respect to the maintenance of all heat, ventilating and air conditioning equipment installed in the premises shall extend to all trade
fixtures and equipment which exist in the premises as of the commencement of the term. Tenant shall only pay for the costs of replacement of all or portions of the heating, ventilating and air conditioning system serving the premises or capital
expenditures which are otherwise properly included as Operating Expenses and are amortized over the useful life of the item in question, together with interest at the prime or reference rate announced from time-to-time in the Wall Street Journal for
short-term commercial loans, plus two percent (2%) per annum. Tenant’s obligation to maintain trade fixtures and equipment in the premises as of the commencement of the term shall be limited to maintaining such trade fixtures and equipment in
their condition and repair as of the commencement of the term. Further, Tenant’s obligations with respect to the surrender of the premises shall be fulfilled if Tenant surrenders possession of the premises in the condition existing as of the
commencement of the term, acts of God, casualties, condemnation, Hazardous Materials (other than those released, stored, emitted by Tenant), and alterations or other interior improvements which may be surrendered as of the end of the Lease,
excepted.” 
  
 8. Amendment of Paragraph 9: Insurance and
Indemnity. 
  
 (a) The following language is hereby added at
the end of Paragraph 9(a) of the Lease: 
  

 23 

 “Landlord shall maintain “all risk” property insurance insuring against risk of loss or
damage to the Building for the full replacement cost thereof.” 
  
 (b) The first clause of the first sentence of Paragraph 9(b) of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “(b) Notwithstanding anything in the Lease and without regard to the negligence or misconduct of the party to be released, Landlord hereby waives
all claims against Tenant and Tenant’s officers, directors, partners, employees, agents and representatives, for loss or damage to the extent that such loss or damage is insured against under any valid and collectible insurance policy insuring
Landlord or required to be maintained by Landlord under this Lease, or would have been insured against but for any deductible amount under any such policy,” 
  
 (c) The first phrase of the second sentence of Paragraph 9(c) of the Lease is hereby deleted and the following language is
substituted in its place: 
  
 “Tenant shall hold Landlord
harmless from and defend Landlord against all claims (except such as arise from the gross negligence or willful misconduct of Landlord, its agents, employees or contractors)” 
  
 9. Amendment of Paragraph 10: Damage or Destruction. 
  
 (a) The final clause of Paragraph 10(a) of the Lease is hereby deleted and the following language is substituted in its
place: 
  
 “provided, however, that if in the opinion of
Landlord’s architect the work of repair cannot be completed within one hundred and eighty (180) days, Landlord may at its election, terminate the Lease by notice given to Tenant.” 
  
 (b) The following language is hereby added at the end of Paragraph 10(b) of
the Lease: 
  
 “If the premises are totally or partially
destroyed and Landlord does not elect to terminate the Lease or is not entitled to terminate the Lease pursuant to its terms, then Tenant shall have the option to terminate the Lease if the premises cannot be restored within three hundred and sixty
(360) days after the damage, by notice to Landlord given within fifteen (15) days following Landlord’s notice to Tenant regarding the estimated time of repair. In addition, Tenant may terminate the Lease if such restoration or repair is not, in
fact, substantially completed within three hundred and sixty (360) days following the event, by notice given to Landlord within fifteen (15) days after the end of such 360-day period but prior to such substantial completion. Notwithstanding anything
in this Paragraph 10 to the contrary, Landlord shall not have the right to terminate the Lease if the total cost of repair or restoration is estimated to cost less than five percent (5%) of the replacement cost of the Building, excluding trade
fixtures installed by Tenant.” 
  
  

 24 

 10. Amendment of Paragraph 11: Eminent Domain. The following language is hereby added at the end
of Paragraph 11 of the Lease: 
  
 “Notwithstanding the
foregoing, Tenant shall be entitled to separately claim and prove, but not at the expense of the award otherwise payable to Landlord: (a) the unamortized value, allocable to the remainder of the term, of any improvements installed at Tenant’s
expense which are not removable; (b) Tenant’s moving costs; (c) loss to Tenant’s goodwill as a consequence of the condemnation; and (d) Tenant’s trade fixtures.” 
  
 11. Amendment of Paragraph 12: Assignment and Subletting. 
  
 (a) The second clause of the first sentence of Paragraph 12(a) of the Lease
is hereby deleted and the following language is substituted in its place: 
  
 “Tenant shall not hypothecate this Lease or any interest herein or permit the use of the Premises by any party other than Tenant without the prior consent of Landlord, which consent may be withheld by Landlord in
its reasonable discretion.” 
  
 (b) The following language is
hereby added at the end of Paragraph 12(a) of the Lease: 
  
 “Notwithstanding the foregoing, Tenant may, upon prior notice to Landlord accompanied by an explicit assumption of the Tenant’s obligations under this Lease for the benefit of Landlord, but without Landlord’s prior consent,
sublet the premises or assign its interest in this Lease to (i) a subsidiary affiliate, division, or corporation controlling, controlled by or under common control with Tenant, (ii) a successor corporation related to Tenant by merger, consolidation,
non-bankruptcy reorganization or government action, or (iii) a purchaser of substantially all of Tenant’s assets as a going concern. A sale or transfer of Tenant’s capital stock shall not be deemed an assignment, subletting or any other
transfer of its interest in the Lease or in the premises; provided, however, that in the case of such purchase of Tenant’s assets, the assignee has a tangible net worth at least equal to that of Tenant as of the commencement of the term.”

  
 (c) Paragraph 12(b)(4) of the Lease is hereby deleted in its
entirety. 
  
 (d) Paragraph 12(d)(1) of the Lease is hereby
deleted in its entirety. 
  
 (e) The first sentence of Paragraph
12(f) of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “In the case of an assignment, one-half ( 1/2) of all sums or other economic
consideration received by Tenant for its leasehold interest in the premises as a result of such assignment shall be paid to Landlord.” 
  
  

 25 

 (f) Paragraph 12(g) of the Lease is hereby deleted and the following language is substituted in its
place: 
  
 “(g) In the case of a subletting, one-half ( 1/2) of all sums or economic consideration received by Tenant as a result of such subletting shall be paid to Landlord
after first deducting (i) the cost of leasehold improvements made to the sublet portion of the premises at Tenant’s expense, amortized over the term of this Lease except for leasehold improvements made for the specific benefit of the sublessee,
which shall be amortized over the term of the sublease, and (ii) the cost of any real estate commissions and other reasonable costs (including attorneys’ fees) incurred in connection with such subletting, amortized over the term of the
sublease.” 
  
 12. Amendment of Paragraph 13:
Default by Tenant. Paragraph 13(a)(2) of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “default by Tenant in the performance of any of the other terms, covenants, agreements or conditions contained herein and, if the default is curable,
the continuation of such default for a period of ten (10) days after notice by Landlord or beyond the time reasonably necessary for cure if the default is of the nature to require more than ten (10) days to remedy; 
  
 13. Amendment of Paragraph 14: Default by Landlord. The following
language is hereby added at the end of Paragraph 14 of the Lease: 
  
 “Following any such default by Landlord in its obligations to maintain the Building or the premises under this Lease, upon prior notice to Landlord, Tenant may perform such obligations and Landlord shall reimburse Tenant for
Tenant’s reasonable out-of- pocket costs incurred in connection with such performance.” 
  
 14. Amendment of Paragraph 15: Security Deposit. 
  
 (a) The sixth sentence of Paragraph 15 of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “The Deposit, or so much thereof as has not theretofore been applied by
Landlord, shall be returned, without payment of interest for its use, to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) at the expiration of the term hereof, and after Tenant has vacated the
premises.” 
  
 (b) The following language is hereby added at
the end of Paragraph 15 of the Lease 
  
 “The Deposit shall
be increased on September 15, 2000 by way of Tenant’s delivery to Landlord, as security for the faithful performance of all of Tenant’s obligations under this Lease, of an irrevocable stand-by letter of credit (the “Letter of
Credit”) for the account of Tenant and for the benefit of Landlord and any successor in interest to Landlord, issued by a National Banking Association 
  

 

 26 

 
member satisfactory to Landlord, and in such form as shall be acceptable to Landlord. The amount of the Letter of Credit shall be as follows: 
  
 (a) If Tenant’s free cash reserves, as reasonably determined by
Landlord, as of September 1, 2000 are less than $25,000,000, the Letter of Credit shall be in an amount equal to Seven Hundred Seventy-five Thousand Dollars ($775,000). 
  
 (b) If Tenant’s free cash reserves, as reasonably determined by Landlord, as of September 1, 2000 are equal to or
greater than $25,000,000 but less than $75,000,000, the Letter of Credit shall be in an amount equal to Five Hundred Eighty-one Thousand Two Hundred Fifty Dollars ($581,250). 
  
 (c) If Tenant’s free cash reserves, as reasonably determined by Landlord, are greater than $75,000,000, the Letter of
Credit shall be in an amount equal to One Hundred Ninety-three Thousand Seven Hundred Fifty Dollars ($191,750). 
  
 (d) If during the term of the Lease Xenogen completes four consecutive quarterly periods with positive cash flows, the Deposit will be reduced to $46,001
(one month rent @$2.16/sf) subject to any other special security deposit requirements related to Xenogen’s specialized tenant improvements. Landlord shall have the right to terminate this Lease on thirty (30) days’ notice to Tenant if
Tenant shall fail to deliver the Letter of Credit to Landlord in accordance with this Paragraph 15 on or before September 15, 2000. Landlord shall be entitled to draw upon the Letter of Credit from time to time for any of the following reasons: (i)
upon or following the occurrence of any event of default under this Lease (A) to pay any amounts payable by Tenant to Landlord hereunder, and (B) to compensate Landlord for any expense, loss or damage incurred or suffered by Landlord in connection
with the event of default; or (ii) if Tenant fails to give Landlord evidence of renewal of the Letter of Credit then in effect as provided below; or (iii) upon the expiration or earlier termination of the Lease, to pay any amount then due and
payable by Tenant to Landlord. Landlord shall not draw upon the Letter of Credit in an amount in excess of the amount required to pay amounts or charges then due and payable by Tenant hereunder, or to compensate Landlord for any loss or damage which
Landlord may suffer as a result of Tenant’s default hereunder; provided, however, if the amount of any draw made in good faith by Landlord on the Letter of Credit exceeds such amounts, the making of such excess draw shall not constitute a
breach of this Lease or of the terms of the Letter of Credit, and the balance of the cash proceeds drawn under the Letter of Credit, if any, shall be held by Landlord as additional security for the faithful performance of all of tenant’s
obligations under this Lease in accordance with this Paragraph 15. Tenant shall maintain the Letter of Credit until thirty (30) days after the later of (1) the Lease expiration date or (2) vacation of the Premises by Tenant and all parties claiming
through Tenant. Tenant shall 

  

 27 

 
renew the Letter of Credit prior to its expiration or arrange for issuance of a new Letter of Credit in accordance with the terms hereof. If Tenant fails to
give Landlord evidence of renewal of the Letter of Credit or issuance of anew Letter of Credit at least thirty (30) days prior to expiration of the Letter of Credit then in effect, Landlord shall be entitled to draw down the full amount of the
Letter of Credit and the amount so drawn shall be treated as a Deposit hereunder. Landlord (and any subsequent transferee) may transfer the Letter of Credit to the purchaser of Landlord’s interest in the Premises and, upon such transfer and the
assumption by such transferee in writing or otherwise by operation of law of Landlord’s obligations with respect thereto, Landlord shall be discharged from any further liability with respect to the Letter of Credit. If the Letter of Credit
cannot be transferred, Landlord shall notify Tenant, and Tenant shall deliver a new Letter of Credit to the purchaser of Landlord’s interest in the Premises and, if Tenant does not provide such new Letter of Credit within thirty (30) days after
request from Landlord, Landlord may draw upon the full amount of the Letter of Credit.” 
  
 15. Amendment of Paragraph 16: Estoppel Certificate. The first clause of the first sentence of Paragraph 16(a) of the Lease is hereby deleted and the following language is substituted in its place: 

 
 “Tenant shall, at any time within twenty (20) days after receiving
notice from Landlord, execute, acknowledge and deliver to Landlord a statement certifying” 
  
 16. Amendment of Paragraph 17: Subordination. The following language is hereby added at the end of Paragraph 17 of the Lease: 
  
 “Notwithstanding the foregoing, within ninety (90) days following the
date of this Lease, Landlord shall cause Teachers Insurance and Annuity Association, or its successor, as beneficiary of the deed of trust presently encumbering the Building, to execute and deliver a counterpart of a Recognition, Non-disturbance and
Attornment Agreement in the form attached to the Addendum to this Lease, with such revisions as Tenant reasonably may request, which Agreement shall promptly be executed and delivered by Tenant. Tenant shall reimburse Landlord within thirty (30)
days following Landlord’s request for any out-of-pocket costs incurred by Landlord in connection with Tenant’s negotiation of the form of such Recognition, Non-disturbance and Attornment Agreement.” 
  
 17. Amendment of Paragraph 20: Notices. The first clause of Paragraph
20 of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “All notices, consents, demands and other communications from one party to the other given pursuant to the terms of this Lease shall be in writing and shall be deemed to have been fully given two (2) business
days following deposit in the United States mail, certified or registered, postage prepaid and addressed as follows:” 
  

 28 

 18. Amendment of Paragraph 21: General Provisions. 
  
 (a) Paragraph 21(e) of the Lease is hereby deleted and the following language
is substituted in its place: 
  
 “If Tenant remains in
possession of the premises or any part thereof after the expiration of the term with the consent of Landlord, such occupancy shall be a tenancy from month to month at a rental in the amount of one hundred fifty percent (150%) of the last
month’s rental during the term, plus all other charges payable hereunder and upon all of the terms of the Lease.” 
  
 (b) The first sentence of Paragraph 21(g) of the Lease is hereby deleted and the following language is substituted in its place: 
  
 “Landlord and Landlord’s agents shall have the right to enter the
premises at reasonable times upon at least twenty-four (24) hours’ prior notice, except in emergencies, for the purpose of inspecting the same, showing the same to prospective purchasers, tenants, lenders and other interested parties, and
making such alterations, repairs, improvements or additions to the premises or to the Building as Landlord may deem necessary or desirable.” 
  
 (c) The following language is hereby added at the end of Paragraph 21(k) of the Lease: 
  
 “and liabilities accruing prior to such sale.” 
  
 (d) The following language is hereby added as Paragraph 21(o) of the Lease: 
  
 “(o) Except as otherwise set forth, whenever this Lease requires an
approval, consent, designation, determination, selection or judgment by either Landlord or Tenant, such approval, consent, designation, determination, selection or judgment and any conditions imposed thereby shall be reasonable and shall not be
unreasonably withheld or delayed and, in exercising any right or remedy hereunder, each party shall at all times act reasonably and in good faith.” 
  
 19. Option to Extend Term: 
  
 (a) Tenant shall have one (1) option to extend the term of the Lease for a five (5) year period (the “Option Period”) with the Option
Period commencing upon the expiration of the initial term of the Lease; provided, however, such option shall be subject to the following conditions: 
  
 (i) At the time the option is exercised, this Lease shall be in full force and effect and Tenant shall not be in default hereunder, and 
  
 (ii) The option must be exercised by notice given to Landlord not earlier
than twelve (12) months and not later than nine (9) months prior to the then-scheduled expiration of the term of this Lease. 
  

 29 

 (b) In the event the option is timely and effectively exercised, the term shall be extended for five (5)
additional years, upon all of the terms and conditions of the Lease; provided, however, that the Base Rent shall be the then fair market rental value of the Premises, but in no event less than the monthly rent for February, 2006. 
  
 (i) For the purposes hereof, the fair market rental value of the Premises
shall be the monthly rental rate per square foot of rentable area then prevailing for comparable improved space (without taking into account the value of improvements made by Tenant at its cost) in the Project, multiplied by the rentable area of the
Premises. If Tenant in good faith disputes Landlord’s determination of fair market rental value, Tenant shall so notify Landlord and the parties shall negotiate in good faith to resolve the dispute. If such dispute is not resolved by
negotiation between the parties within thirty (30) days, then fair market rental value shall be determined by appraisal. Tenant shall pay Base Rent when due based upon Landlord’s determination of fair market rental value, subject to retroactive
adjustment between the parties if the determination by appraisal is different from Landlord’s determination. 
  
 (ii) When fair market rental value is to be determined by appraisal, within ten (10) days after the expiration of the 30-day negotiation period, Landlord
and Tenant shall each appoint as an appraiser, a real estate appraiser with at least ten (10) years of experience in appraising commercial real property in Alameda County, and give notice of such appointment to the other. If either Landlord or
Tenant shall fail to appoint an appraiser within ten (10) days after receiving notice of the identity of the other party’s appointed appraiser, then the single appraiser appointed shall be the sole appraiser and determine the fair market rental
value of the Premises. In the event each party appoints an appraiser, such appraisers shall, within thirty (30) days after the appointment of the last of them to be appointed, complete their determinations of fair market rental value and furnish the
same to Landlord and Tenant. If the low appraisal varies from the higher appraisal by five percent (5%) or less, the fair market rental value shall be the average of the two valuations. If the low appraisal varies from the high appraisal by more
than five percent (5%), the two appraisers shall, within ten (10) days after submission of the last appraisal report, appoint a third appraiser who shall meet the qualifications set forth in this paragraph. If the two appraisers shall be unable to
agree on the selection of a third appraiser in a timely manner then either Landlord or Tenant may request such appointment by the presiding judge of the Superior Court of Alameda County. The third appraiser, however selected, shall be a person who
has not previously acted in any capacity for or against either party. Such third appraiser shall, within thirty (30) days after appointment, make a determination of fair market rental value and submit an appraisal report to Landlord and Tenant. The
fair market rental value of the Premises shall be as determined by the third appraiser, unless it is less than the valuation set forth in the lower appraisal previously obtained, in which case the valuation set forth in the lower prior appraisal
shall be controlling, or unless it is greater than the valuation set forth in the higher appraisal previously obtained, in which case the valuation set forth in the higher prior appraisal shall be controlling. All fees and costs incurred in
connection with the determination of fair market rental value by appraisal shall be paid one-half by Landlord and one-half by Tenant. Prior to the commencement of the option period, Tenant and Landlord shall execute an amendment to this Lease
setting forth the option period and revised Base Rent. 
  

 30 

 20. Right of First Offer. Tenant shall have a right of first offer to lease Suite 102 (the
“Offer Space”) if it becomes available in the building commonly identified as 2061 Challenger Drive if and when such space becomes available. Tenant acknowledges and agrees that the Offer Space is currently leased to Cell Genesys
through April, 2007. Tenant’s rights under this paragraph shall be conditioned upon: (a) 2061 Challenger Drive continuing to be owned by the same entity which is the Landlord under this Lease: (b) the absence of any prior rights in favor of the
present and any future tenants in 2061 Challenger Drive, as such rights may exist or be granted in the future; and (c) Tenant not being in default under this Lease. Subject to the foregoing, if and when the Offer Space does become available,
Landlord shall give notice to Tenant of the availability of the Offer Space and the terms on which Landlord would be willing to enter into a lease for such space with Tenant. In no event shall the Base Rent per square foot payable with respect to
the Offer Space be less than the Base Rent per square foot payable with respect to the Premises at the time the Offer Space becomes available. If Tenant, by notice to Landlord given within five (5) business days following the giving of
Landlord’s notice, so elects, the parties shall thereafter negotiate in good faith for ten (10) business days with respect to the potential of leasing the Offer Space to Tenant. If by the end of such 10-day period, Landlord and Tenant have not
entered into a binding agreement with respect to the lease of the Offer Space to Tenant, or if Tenant initially does not give Landlord notice of its desire to enter into such negotiations within the five-day business period set forth above, Landlord
shall thereafter be free to deal with the Offer Space without further reference to Tenant, unless and until one (1) year or more thereafter the Offer Space again becomes available. 
  
 21. Specialized Improvements. Subject to the provisions of Paragraph 8(c) of the Lease and Landlord’s election
to require a separate, additional security deposit hereunder, Tenant may install improvements in the Premises that relate to its permitted uses hereunder, such as lab facilities, that are not ordinary office use improvements (collectively,
“Specialized Improvements”). Tenant shall have the right to remove the Specialized Improvements, at Tenant’s sole expense, at the expiration or termination of the Lease provided that Tenant fully restores the Premises to their
building standard, open configuration condition, as existed prior to the installation of such Specialized Improvements, including, without limitation, removing or capping utility supply lines and waste return lines as directed by Landlord. Landlord
shall have the option to require that Tenant deposit a separate, additional security deposit in connection with the installation of any Specialized Improvements. In determining whether to exercise such option, Landlord shall consider the nature of
the Specialized Improvements, the amount of the Deposit then held pursuant to Paragraph 15, and Tenant’s financial condition at the time of Tenant’s request to install Specialized Improvements. Any separate, additional security deposit
required by Landlord with respect to the Specialized Improvements shall be held by Landlord as security for the performance of Tenant’s obligations hereunder with respect to removal of the Specialized Improvements and restoration of the
Premises, but shall otherwise be subject to the terms of Paragraph 15 of the Lease. 
  

 31 

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Addendum as of the date of the Lease.

  

									
	 TENANT:
	 	 	 	 LANDLORD:

			
	XENOGEN CORPORATION,
a California corporation	 	 	 	ALAMEDA REAL ESTATE INVESTMENTS,
a California limited partnership
					
	By:	 	/s/ Pamela Reilly Contag	 	 	 	By:	 	Vintage Alameda Investments, LP
a California limited partnership
operating general partner
	 	 	
	 	 	 	 	 	 
	Name:	 	Pamela Reilly Contag	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	Title:	 	CEO and President	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	 	 	By:	 	Vintage Properties – Alameda Commercial,
	 	 	 	 	 	 	a California corporation,
managing general partner
					
	By:	 	 	 	 	 	By:	 	/s/ Joseph R. Seiger
	 	 	
	 	 	 	 	 	

	Name:	 	 	 	 	 	Name:	 	Joseph R. Seiger
	 	 	
	 	 	 	 	 	

	 Title:
	 	 	 	 	 	Title:	 	President
	 	 	
	 	 	 	 	 	

  

 32 

 AMENDMENT NO. 1 
 TO 
 MARINA VILLAGE NET OFFICE—TECH LEASE 
  
 THIS AMENDMENT NO. 1 (“Amendment No. 1”) is made and entered
into as of November 28, 2000, by and between ALAMEDA REAL ESTATE INVESTMENTS, a California limited partnership (“Landlord”), and XENOGEN CORPORATION, a California corporation (“Tenant”).

  
 RECITALS 
  

	A.	Landlord and Tenant executed that certain Marina Village Net Office-Tech Lease, dated as of June 6, 2000 (collectively, the “Lease”} for the lease of
certain premises located at 2061 Challenger Drive, Suite 100, 101 and 103, in the City of Alameda, California. The capitalized terms used in this Amendment No. 1 shall have the meanings set forth in the Lease unless otherwise specified herein.

  

	B.	Landlord and Tenant desire to amend the Lease on the terms and conditions set forth herein. 

  
 NOW, THEREFORE, in consideration of the mutual agreements herein contained, Landlord and Tenant hereby agree as follows: 
  

	1.	Amendment of Addendum Section 20. Right of First Offer. Section 20 of the Addendum to the Lease is hereby amended to read as follows: 

  

	 	20.	Expansion of the Premises. 

  
 Tenant shall incorporate Suite 102 (the “Suite”) containing 14,501 rentable square feet, identified on the diagram attached
hereto as Exhibit B, into the Premises, in the building commonly identified as 2061 Challenger Drive (the “Building”), when such space becomes available. The Suite is currently leased to Cell
Genesys through February 28, 2007 pursuant to that certain Lease dated June 16, 1986 (the “Cell Genesys Lease”), and sublet by Cell Genesys to Genteric Corporation through February 28, 2002 pursuant to that certain Sublease dated August 1,
1998 (the “Genteric Corporation Sublease”). Concurrently herewith, Landlord and Cell Genesys are executing that certain Assignment of Lease of the Cell Genesys Lease whereby the Cell Genesys tenancy shall terminate and the Genteric
Corporation Sublease shall become a direct lease between Landlord and Genteric Corporation expiring no later than February 28, 2002. Landlord shall not extend the expiration of such direct lease or the Genteric Corporation Sublease beyond February
28, 2002. Landlord shall use its commercially reasonable efforts to deliver legal possession of the Suite to Tenant on or before March 1, 2002. In the event the Suite is not delivered to Tenant on or before May 1, 2002, Tenant may terminate this
Amendment No. 1. This paragraph 20 shall not be effective if at anytime prior to delivery of possession Tenant is in default under this Lease beyond applicable notice and cure periods. 
  
 Subject to the foregoing, if and when the Suite does become available, Landlord shall give notice to Tenant of the date for
delivery of the Suite. Tenant agrees to accept delivery of the Suite upon thirty (30) days notice from Landlord. Base Rent for the Lease of the Suite shall be at the Base Rent per square foot in effect with respect to the remainder of the Building
at the time of delivery of the Suite as increased over the term of the lease. Tenant’s percentage share shall be 100%, effective at the time of delivery of the Suite. Upon delivery Landlord and Tenant shall enter into an amendment of this Lease
which reflects the addition of the Suite and the related increase in rent and percentage share. 
  

	2.	Ratification. Landlord and Tenant hereby ratify and confirm all of the terms of the Lease as modified by paragraph 1 of this Amendment No. 1. Except as expressly set
forth to the contrary in this Amendment No. 1 the Lease, as amended, remains unmodified and in full force and effect. To the extent of any conflict between the terms of this Amendment No. 1 and terms of the Lease, the terms of this Amendment No. 1
shall control. 

 IN WITNESS WHEREOF, Landlord and Tenant have entered into this Amendment No. 1 as of the Effective Date. 
  

											
	TENANT:	 	LANDLORD:
		
	 XENOGEN CORPORATION,
 a California
corporation
	 	ALAMEDA REAL ESTATE INVESTMENTS,
a California limited partnership
				
	 	 	 	 	By:	 	Vintage Alameda Investments, LP,
	 By:
	 	 /s/ Kevin Birtchnell
	 	 	 	a California limited partnership,
operating general partner
	 	 	
	 	 	 	 	 
	 Name:
	 	 Kevin Birtchnell
	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 
	 Title:
	 	 CFO & VP
	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Vintage Properties-Alameda Commercial,
	By:	 	  

	 	 	 	 	 	a California corporation,
	Name:	 	 	 	 	 	 	 	managing general partner
	 	 	
	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	 
						
	 	 	 	 	 	 	 	 	By:	 	/s/ Joseph E. McVeigh
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	JOSEPH E. MCVEIGH
	 	 	 	 	 	 	 	 	Title:	 	VICE PRESIDENT

  

 -2-Real estate lease agreement  for 5 Cedar Brook Dr, Cranbury, NJ

  
 EXHIBIT 10.10

  
 AGREEMENT 
  
 CEDAR BROOK CORPORATE CENTER, L P. 
  
 AND 
  
 CHRYSALIS DNX TRANSGENIC SCIENCE CORP. 

 TABLE OF CONTENTS 
  

					
	Section

	  	Page

	1	  	Leased Premises	  	1
			
	2	  	Term of Lease	  	2
			
	3	  	Construction	  	2
			
	4	  	Rent	  	8
			
	5	  	Parking and Use of Exterior Area	  	9
			
	6	  	Use	  	10
			
	7	  	Repairs and Maintenance	  	10
			
	8	  	Common Area Expenses, Taxes and Insurance	  	12
			
	9	  	Signs	  	15
			
	10	  	Assignment and Subletting	  	15
			
	11	  	Fire and casualty	  	17
			
	12	  	Compliance with Laws, Rules and Regulations	  	18
			
	13	  	Inspection by Landlord	  	20
			
	14	  	Default by Tenant	  	21
			
	15	  	Liability of Tenant for Deficiency	  	23
			
	16	  	Notices	  	23
			
	17	  	Non-Waiver by Parties	  	24
			
	18	  	Right of Tenant to Make Alterations and Improvements	  	24
			
	19	  	Non-Liability of Landlord	  	25
			
	20	  	Reservation of Easement	  	25
			
	21	  	Statement of Acceptance	  	25
			
	22	  	Force Majeure	  	25
			
	23	  	Statements by Landlord and Tenant	  	26
			
	24	  	Condemnation	  	26
			
	25	  	Landlord’s Remedies	  	27
			
	26	  	Quiet Enjoyment	  	27
			
	27	  	Surrender of Premises	  	27
			
	28	  	Indemnity	  	28
			
	29	  	Bind and Inure	  	29

  

					
			
	30	  	Inclusions	  	29
			
	31	  	Definition of Term “Landlord”	  	29
			
	32	  	Covenants of Further Assurances	  	29
			
	33	  	Covenants Against Liens	  	30
			
	34	  	Subordination	  	30
			
	35	  	Exculpation of Landlord	  	30
			
	36	  	Net Rent	  	31
			
	37	  	Security	  	31
			
	38	  	Brokerage	  	32
			
	39	  	Late Charges	  	32
			
	40	  	Press Releases	  	32
			
	41	  	Performance of Work for Tenant Improvements	  	32
			
	42	  	Waiver of Jury Trial	  	33
			
	43	  	Laws of New Jersey	  	33
		
	Schedule A     Description	  	 
		
	Schedule B     List of Approved Contractors	  	 

  

 AGREEMENT, made as of August , 1998, between CEDAR BROOK 11 CORPORATE CENTER, L.P., 1000 Eastpark Blvd.,
Cranbury, New Jersey 08512 “Landlord”; and CHRYSALIS DNX TRANSGENIC SCIENCE CORP., 301 College Road East, Princeton, New Jersey 08540, “Tenant”. 
  
 WITNESSETH: 
  
 WHEREAS, the Landlord intends to lease to the Tenant a portion of 5 Cedar Brook Drive, Cranbury, New Jersey 08512, (the “Building”)
constituting a portion of the office/industrial park known as CEDAR BROOK CORPORATE CENTER (“Office Park”); and 
  
 WHEREAS, the parties hereto wish to mutually define their rights, duties and obligations in connection with the said lease; 
  
 NOW THEREFORE, in consideration of the promises set forth herein the
Landlord leases unto the Tenant and the Tenant rents from the Landlord the Leased Premises described in Paragraph 1, and the Landlord and Tenant do hereby mutually covenant and agree as follows: 
  
 1. LEASED PREMISES 
  
 1.1 The leased premises shall consist of approximately 34,018 rentable
square feet in the Building, consisting of approximately 5,315 square feet of “Unimproved Space” (as said term is defined in Paragraph 41(a), below; all other leased space being sometimes hereinafter referred to as “Improved
Space”) and 28,703 square feet of Improved Space measured from outside of glass to center line of common wall, of laboratory/office space, as identified on the plan attached hereto and made a part hereof as Schedule “A” (collectively,
the “Leased Premises”), together with all improvements to be constructed thereon by the Landlord for the use of the Tenant, and all improvements, tenements, hereditaments, fixtures and rights and privileges appurtenant thereto, and any and
all fixtures and equipment which are to be installed in said Building by the Landlord for the use of the Tenant in its occupancy of the Leased Premises and any expansion space. Tenant shall also have the right to use all common areas of the Building
and the Office. Park in a similar manner as other Office Park tenants. It is acknowledged that 1,495 equate feet of the Unimproved Space is subject to governmental approval of a change in the footprint of the Building. 
  

 2. TERM OF LEASE 
  
 2.1 The term of the Lease shall be (ten) 10 years, to commence on the Commencement Date and to and on the last day of the
month in which occurs the tenth 10th anniversary of the Commencement Date. The term “Commencement Date” shall mean the first day of the next succeeding month following the occurrence of all of the following conditions: 
  
 (a) Landlord shall have achieved Substantial Completion (as that term is
defined in Paragraph 3.2 hereof); and 
  
 (b) Water, gas, and
electricity utility service shall be available to the Leased Premises and in working order. 
  
 The Commencement Date is projected to be April 15, 1999. Landlord shall advise Tenant two weeks in advance of the anticipated actual Commencement Date. Thereafter, Landlord shall promptly advise Tenant of any changes
in such date so as to enable Tenant to coordinate the move of its business. Subject to Paragraph 22, in the event the Commencement Date has not occurred on or before December 1, 1999, Tenant shall have the right to cancel this Lease upon notice to
Landlord; provided however, that added on to such “drop dead” date shall be each and every day of “Tenant Delay” as said term is defined in Paragraph 3.1a(iv), below. 
  
 3. CONSTRUCTION 
  
 3.1 (a) Landlord shall complete the construction of the Leased Premises in a competent and workmanlike manner and in accordance with plans and
specifications to be prepared in the following manner. 
  
 (i) On or before September 15,1998, Tenant shall furnish Landlord with a complete set of drawings (the “Plans”) of the machinery, fixtures and equipment to be constructed and other improvements to be installed by Landlord in the
Leased Premises in order to ready the same for Tenant’s use and occupancy (the “Tenant Improvements”). The Plans shall be of sufficient detail to permit Landlord to prepare a construction budget for the Tenant Improvements and shall,
at a minimum, include the following information: (i) position layout (dimensioned); (ii) door location and door schedule; (iii) reflected ceiling plan; (iv) telephone and electrical outlets with locations (dimensioned); (v) electrical service
requirements; (vi) special electrical air-conditioning and/or 

  

					
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plumbing work; (vii) mechanicals; (viii) special loading requirements, such as the location of file cabinets and/or special equipment; (ix) openings in the
walls or floors; (x) all necessary specifications, sections and details for special equipment and fixtures; and (xi) finishes including, without limitation, carpentry and millwork, floor coverings and wall coverings. 
  
 (ii) Within ten business (10) days after Landlord’s
receipt of the Plans, Landlord shall prepare a construction budget (the “Construction Budget”) and submit the same to Tenant and its Architect. Within five (5) business days of receipt of the Construction Budget, Tenant shall indicate its
acceptance or rejection thereof by written notice to Landlord. Failure by Tenant to give such written notice within said five (5) business day period shall constitute acceptance of the Construction Budget. In the event Tenant rejects the
Construction Budget, Tenant shall advise Landlord in said written notice of the reasons for such rejection, whereupon Tenant and its Architect shall work with Landlord in good faith to revise the Tenant Improvements and/or the Construction Budget so
that the Construction Budget may be approved by Landlord and Tenant within five (5) business days after such rejection. 
  
 (iii) If Landlord and Tenant are unable to agree upon the Construction Budget, then the following provisions shall govern: 
  
 A) Within ten (10) business days after the parties’
acknowledgment that they are unable to agree upon the Construction Budget, Tenant shall furnish Landlord with a competitive bid for construction and installation of the Tenant Improvements (the “Competitive Bid”). The Competitive Bid must
be given by one of the contractors named on Schedule B, approved by Landlord and Tenant, attached hereto (the “Approved Contractors”). If the difference between Construction Budget and the, Competitive Bid (hereinafter the “Price
Differential”) is ten (10%) percent or less, then the Construction Budget proposed by Landlord shall be deemed to be accepted by Tenant, and Landlord shall proceed to perform the Work for the Tenant Improvements. [For example, on a per square
foot basis, if the proposed Construction Budget is $240 and the Competitive Bid is $225, then the Construction Budget shall be deemed to be approved at $240 because the Price Differential of $15.00 is less than 10% of $240]. In order to be valid for
the purposes of this Lease, any Competitive Bid must have a mark-up of not less than 2% for general conditions, 10% for overhead, and 7% for profit. 
  

					
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 B) If the Price Differential is greater than ten (10%) percent, then Landlord may elect
to perform the Tenant Improvements at the price of the Competitive Bid. If Landlord fails to make such election, then Landlord and Tenant shall in good faith attempt to reconcile their differences and agree upon a price; however, if they are unable
to do so, then Tenant shall have the right to have the Approved Contractor who submitted the Competitive Bid perform the work for the Tenant Improvements, provided that Price Differential is not greater than 20%. If the Price Differential is greater
than 20%, then Landlord shall have the right to cancel this Lease upon notice to Tenant. If the parties agree upon a price and Landlord performs the work, the time involved in going through the Competitive Bid process shall be added to the time for
achievement of Substantial Completion. 
  
 C) If
the Approved Contractor performs the work for the Tenant Improvements, then notwithstanding anything herein contained to the contrary, the provisions of Paragraph 41 shall prevail over all other terms contained in this Lease which are inconsistent
therewith. 
  
 (iv) In order for Substantial
Completion (as defined below) to occur by April 15, 1999, it is essential that the Plans and the Budget be agreed upon no later than October 28, 1998. In the event agreement upon the Plans and/or Budget is delayed beyond October 28, 1998, then the
date for Substantial Completion shall be deferred for a period time equal to the period of delay. Furthermore, if such delay is attributable solely to Tenant (“Tenant Delay”), Substantial Completion of the Leased Premises shall be deemed
to be on the date when they would have been ready but for such delay by Tenant. In order for Tenant Delay to have occurred, Landlord must give prompt notice to Tenant of the event(s) giving rise to such Tenant Delay, coupled with an explanation as
to the possible duration of the delay. 
  
 (v) A
set of the Plans shall be initialed by and given to both parties. Thereafter, any changes shall be governed by Paragraph 3.1(c). 
  
 (b) Landlord shall allow Tenant One Hundred ($100.00) Dollars per square foot of the Leased Promises toward the construction costs of Tenant’s
Improvements for the Improved Space. If the construction costs of Tenant’s Improvements exceed $100.00 per square foot, Landlord shall increase its allowance up to $185.00 per square foot (subject to adjustment in Base Rent as 

  

					
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hereinafter provided in Paragraph 4.1(a)). Any cost in excess of such allowance shall be the responsibility of Tenant (“Tenant’s Cost Share”).
The Construction Budget shall include Landlord’s mark-up of 2% for general conditions, 10% for overhead, and 7% for profit. Upon approval of the Construction Budget and if the budget exceeds $185.00 per square foot, Tenant shall immediately pay
to Landlord, prior to Landlord’s commencement of work on Tenant Improvements, a sum equal to fifty percent (50%) of Tenant’s Cost Share. Upon Substantial Completion of Tenant Improvements, Tenant shall pay to Landlord within ten (10) days
after its receipt of an invoice thereafter, a sum equal to the remaining balance of Tenant’s Cost Share. In the event Tenant fails to pay to Landlord, upon approval of the Construction Budget a sum equal to fifty percent (50%) of Tenant’s
Cost Share, Landlord shall not be obligated to commence work on the Tenant Improvements for the Leased Premises, and such failure to pay shall not delay the Commencement Date of this Lease or any of Tenant’s obligations hereunder including,
without limitation, Tenant’s obligation to pay all rent. In the event that Tenant fails to pay to Landlord, upon Substantial Completion of the Tenant Improvements for the Premises, a sum equal to the remaining cost of Tenant’s Cost Share,
such failure shall constitute a default under this Lease; and Tenant shall not be permitted to occupy the Leased Premises; and Landlord shall be entitled to all rights and remedies available hereunder, at law or in equity, or otherwise, which rights
shall be cumulative. All sums so owing to Landlord shall constitute Additional Rent (as hereafter defined) and shall be subject to the imposition of late charges as provided in this Lease. 
  
 (c) In order to be binding, any change orders to the Plans proposed by either
party must be agreed to in writing by both Landlord and Tenant and must set forth (i) any increase or decrease in the cost of the Tenant Improvements for such change, and (ii) any delay in the date for Substantial Completion that may be occasioned
thereby. If such change order is executed, and if in fact there is a delay in the date for Substantial Completion as a result thereof, then the date for Substantial Completion shall be deemed to occur on what would have otherwise bee a the date for
Substantial Completion had the subject change order not been executed. Any increase in cost resulting from an approved change order which increases the Construction Budget above $185.00 per square foot shall be paid for by Tenant as follows: one
half upon the execution of the change order and the balance upon Substantial Completion as provided in Subparagraph 31(b). Any increase in cost resulting from 

  

					
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an approved change order where the Construction Budget remains below $185.00 per square foot shall result in an adjustment to the Base Rent as provided in
Subparagraph 4.1(a), below. In determining the construction costs charged by Landlord for an approved change order, the cost charged by subcontractors, material suppliers and/or governmental authorities shall be marked up for general conditions,
overhead and profit as follows: 
  
 Change order cost =
Landlord’s cost x 1.02 x 1.10 x 1.07. 
  
 Landlord may disapprove and reject
any change order proposed by Tenant for work which has already been performed and/or for materials or equipment that have already been ordered, unless Tenant agrees to pay to Landlord all cost and expense that Landlord will sustain as a result of
the implementation of such proposed change order. 
  
 (d) Landlord
shall be responsible for constructing the Tenant Improvements to the “Unimproved Space,” as said term is hereinafter defined in Paragraph 4.1(a), below, in accordance with plans developed pursuant to the procedures set forth in
Subparagraph 3.1(a); but in no event shall Landlord be obligated to improve the Unimproved Space after the fifth (5th) anniversary of the Commencement Date. The allowance for Tenant Improvements shall be in accordance with Subparagraph 3.1(b); subject to the following modifications: (i) in no event shall the Construction Budget therefor exceed $100
per square foot; and (ii) the Base Rent of $26.00 per square foot for such Unimproved Space then being improved shall be increased at the rate of six and one half ($0.065) cents for each month that elapses between the Commencement Date and the date
that Substantial Completion for such Unimproved Space occurs. Any constriction costs in excess of such $100.00 per square foot allowance shall be the responsibility of Tenant and shall comprise Tenant’s Cost Share, and shall be payable one half
upon agreement as to the plans for such Tenant Improvements and the other one half upon completion thereof, 
  
 (e) During construction of Tenant Improvements, representatives of each party shall inspect the site no less frequently than every 2 weeks and verify and
agree that work in progress has been completed in a manner acceptable to both Landlord and Tenant. 
  
 (f) During construction of Tenant Improvements, Tenant shall have access to the Leased Premises in order to install its own equipment provided:

  
 (i) it delivers to Landlord a certificate of
insurance for the coverage set forth in Paragraph 8.4; and 
  

					
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 (ii) it shall coordinate its work with the work being performed by Landlord in the manner
directed by Landlord so that there shall be no material interference with, delay, or interruption of Landlord’s work; and 
  
 (iii) no labor forces are used by Tenant which are incompatible with Landlord’s labor forces, so there are no strikes, picketing,
work stoppages or slow downs. 
  
 3.2 The Leased Premises shall be
considered substantially completed, and rent payments shall commence, upon the issuance of a Temporary or Permanent Certificate of Occupancy, or a Temporary or Permanent Certificate of Acceptance (“CO/CA”) issued by the governmental
instrumentality having jurisdiction thereof (“Substantial Completion”), provided that the Tenant Improvements installed by Landlord are operable so as to permit Tenant to conduct its business in the ordinary course without material
interference. Material interference shall mean by way of example such things as the tissue culture room or the dark room being inoperable; and shall not mean that one or two electrical outlets or hoods are not working. It is agreed that for the
purpose of this Lease, wherever and whenever the term Substantial Completion is used, it shall not include items of maintenance, service, punch list, or guarantee. If the date of Substantial Completion occurs on a day other than the first day of a
month, rent from such day until the first day of the following month shall be prorated (at a rate of 1/30th of the monthly rent per day). During said period of partial monthly occupancy, all other terms and conditions of this Lease shall apply.

  
 3.3 The Landlord shall have the right to substitute for the
materials and equipment required by the Plans, materials and equipment of equal quality and standard, pre vided said substitutions conform with applicable building codes and that Tenant gives its consent (which shall not be unreasonably withheld or
delayed) to the substitution of any materials or equipment that have a material effect upon its business operations, such as laboratory equipment. 
  

					
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 4. RENT 
  

4.1 Tenant shall pay, as rent for the Leased promises, the following: 
  
 (a) During the first five (5) years of the term, an annual base rent per square foot (“Base Rent”) of Twenty Six
and 00/100 ($26.00) Dollars per annum for Improved Space (which includes a $100 per square foot allowance for Tenant Improvements) and Six and 00 /100 ($6.00) Dollars per annum for Unimproved Space for an aggregate Base Rent of Seven Hundred Seventy
Eight Thousand One Hundred Sixty Eight and 00/100 ($778,168.00) Dollars. If the allowance for Tenant Improvements exceeds the $100.00 per square foot set forth in Paragraph 3.1(b), then for every $40.00 increase in the allowance up to $150.00 per
square foot, the Base Rent shall be increased at the rate of $7.00 per square foot and for every $40.00 increase in the allowance in excess of $150.00 per square foot the Base Rent shall be increased at the rate of $8.00 per square foot. Said rental
rate amounts shall be appropriately adjusted if an incremental increase in the allowance is less than $40.00. The parties acknowledge that the Plans will show certain parts of the Leased Premises as not being initially improved (the “Unimproved
Space”). If and when the Unimproved Space becomes the subject of Tenant Improvements, then the annual Base Rent therefor shall he adjusted in accordance with the terms of this Subparagraph (a) and Subparagraph 3.1(d). 
  
 (b) During the second five (5) years of the term, the Base Rent for the
Improved Space shall be increased by $3.90 per square foot ($26.00 plus a 15% increase); and the Base Rent for the Unimproved Space shall be increased by $.90 per square foot ($6.00 plus a 15% increase): and the Base Rent for Unimproved Space which
was converted to Improved Space shall be increased on a proportionate basis at the rate of 3% per year [for example if Substantial Completion of the newly Improved Space occurs on the second anniversary of the Commencement Date, the Base Rent for
such Space shall be increased by $2.70 ($26.00 plus a 9% increase, and $6.00 plus a 6% increase.). 
  
 (c) All payments assume rentable square footage as set forth in Paragraph 1.1, above, and all payments are based upon a rental rate of $26.00 per square
foot for Improved Space and $6.00 per square foot for Unimproved Space during the term, subject to adjustment as set forth in the immediately preceding Subparagraph and in Subparagraph 4.1(a), plus the payment of all Additional Rent as herein
provided. 
  
 (d) To the extent the actual rentable square footage
(recognizing the difference between Improved Space and Unimproved Space) differs from the figures set forth herein, the Base Rent shall be adjusted to reflect the proper amount. At lease thirty (30) days prior to the Commencement 

  

					
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Date, Landlord’s architect shall certify the amount of rentable square footage comprising the Leased Premises as well as the amount of Improved Space
and Unimproved Space. 
  
 (e) All payments required to be made by
Tenant under this Lease other than pursuant to this Paragraph 4.1 shall be deemed to be and are sometimes referred to in this Lease as “Additional Rent.” 
  
 (f) The Base Rent shall be payable in advance in equal monthly installments on the first day of each calendar month, and
shall be prorated (at a rate of 1 /30th of the monthly rent per day) for any partial month during the term. 
  
 4.2 Tenant shall pay as Additional Rent, as detailed in Paragraph 8.1, below, its Proportionate Share of the cost of repairs, maintenance, taxes,
insurance and any other charge as herein provided, allocated amongst the tenants. Tenant’s Proportionate Share shall be adjusted as of each first day of January during the term, based on the relationship between the gross square footage leased
to Tenant and the gross square footage of building construction completed and occupied or previously occupied in the Office Park as of such first day of January. 
  
 4.3 Tenant covenants to pay the Base Rent and Additional Rent in lawful money of the United States which shall be legal
tender for the payment of all debts, public and private, at the time of payment. Such rent shall be paid to Landlord at its office address herein above set forth, or at such other place as Landlord may, from time to time, designate by notice to
Tenant. 
  
 4.4 The Base Rent and Additional Rent shall be payable
by Tenant without any set-off or deduction of any kind or nature whatsoever and without notice or demand; and all Additional Rent under this Lease shall constitute rent payable hereunder, without regard to the party to whom same may be payable,

  
 5. PARKING AND USE OF EXTERIOR AREA 
  
 The Tenant shall have the right to use sixty (60) parking spaces for their
employees and visitors on an unallocated and non-exclusive basis in common with other tenants of the Building. Landlord reserves the right to allocate specific parking spaces if it chooses. The Landlord and Tenant mutually agree that they will not
block, hinder or otherwise obstruct the access driveways and parking areas so as to impede the free flow of vehicular traffic on the property. In connection with 

  

					
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the use of the loading platforms, if any, Tenant agrees that it will not use the same so as to unreasonably interfere with the use of the access driveways
and parking areas. Tenant shall not store trailers or other vehicles on any portion of the access driveways or parking areas, and may not utilize any portion of the land outside of the Leased Premises for any purpose unless consented to in advance
by Landlord. 
  
 6. USE 
  
 The Tenant covenants and agrees to use and occupy the Leased Premises for
offices and commercial laboratory research and development, and for no other purpose or use. Animal breeding and testing may involve mice, rats or other rodents and other species of animal, but not primates, dogs and/or cats. Tenant covenants and
agrees that all of its operations at the Leased Premises shall be conducted in accordance with all applicable laws, rules and regulations Said uses are expressly subject to all applicable zoning ordinances, rules and regulations of any governmental
instrumentalities, boards or bureaus having jurisdiction thereof. Tenant’s manner of use of the Leased Premises shall not interfere with the peaceable and quiet use and enjoyment by other tenants at their respective leased promises located at
the Building or in the Office Park, nor shall Tenant’s activities cause Landlord to be in default under its leases with such other tenants. To Landlord’s knowledge, Tenant’s proposed use of the Leased Premises does not violate any
provision of this Paragraph 6. 
  
 7. REPAIRS AND
MAINTENANCE 
  
 7.1 Tenant shall generally maintain and
repair the Leased Premises in a good and workmanlike manner, and shall, at the expiration of the term, deliver the Leased Premises in good order and condition, damages by fire or casualty, the elements and ordinary wear and tear excepted. Tenant
covenants and agrees that it shall not cause or permit any waste, damage or disfigurement to the Leased Premises, or any overloading of the floors. The Tenant shall make all repairs to the floor surface, the electrical and plumbing systems located
within the Leased Premises, including all ballasts and fluorescent fixtures and HVAC system. Landlord shall be responsible for repairs necessary to the roof, exterior and load-bearing walls, and electric and plumbing systems to the point where they
enter the Leased Premise, unless the repair is necessitated by any act of Tenant or its agents, in which event the responsibility for payment of the cost of repair shall be that of Tenant. 
  

					
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 (b) Landlord shall guarantee the Tenant Improvements for the first one year of the term of this Lease,
provided that with respect to the HVAC system, the manufacturer’s warranty remains in effect. If the manufacturer’s warranty for the HVAC becomes void during said one year due to Tenant’s conduct, then upon such occurrence the
Landlord’s guarantee of the HVAC shall automatically expire. Landlord shall assign to Tenant all manufacturers’ warranties for Tenant Improvements. In the first instance, Tenant agrees to rely on said warranties in the event of any problem
with such covered items. Landlord’s guarantee shall be limited to repair and/or replacement of the subject improvement, as appropriate. In no event shall Landlord be liable for consequential damages that may occur as the result of any defect,
deficiency or improper construction or installation of any Tenant Improvement. 
  
 7.2 The Tenant shall, at its own cost and expense, pay all utility meter and service charges for utilities used by Tenant, including gas and electric servicing the Leased Premises. Landlord shall have the option to
install, at its own cost, a separate water meter in order to monitor Tenant’s water usage. The Tenant agrees to maintain all leased areas at a minimum temperature of 45 degrees F°. excluding cold rooms or other rooms designated for a lower
temperature, to prevent the freezing of domestic water and sprinkler pipes; provided that Tenant shall have no liability for breach of the foregoing covenant if utility service to the Building has been interrupted, for reasons not caused by Tenant.
Tenant shall not store any garbage or recyclables outside the Limed Premises, and shall deliver its garbage and recyclables to the central receiving area on the lo. 
  
 7.3 Landlord shall provide the following during the term of this Lease: 
  
 (a) Continually cooperate with Public Service Electric and Gas to have Public
Service Electric and Gas provide gas and electrical service to the point where it enters the Leased Premises for Tenant’s permitted uses; 
  
 (b) Extermination and pest control when necessary; 
  
 (c) 24-hour access to the Leased Premises; 
  
 (d) Continually cooperate with Elizabethtown Water Company to have Elizabethtown Water Company provide water service to the point where it enters the
Leased Premises; and 
  

					
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 (e) Maintenance of the common areas of the Office Park, in a manner similar to other office parks in the
area, with the cost to be passed on to Tenant as set forth in Paragraph 8. 
  
 7.4 Landlord does not warrant that any services Landlord or any public utilities supply will not be interrupted. Services may be interrupted because of accidents, repairs, alterations, improvements or any other reason
beyond the reasonable control of Landlord. Landlord shall have no liability to Tenant on account of any such interruption. 
  
 8. COMMON AREA EXPENSES, TAXES AND INSURANCE 
  
 8.1 The Tenant shall pay to the Landlord, monthly, as Additional Rent its Proportionate Share of the following items which shall be known as Common Area
Expenses: 
  
 (a) The costs incurred by the Landlord for the
operation, maintenance or repair of the following in the Office Park: 
  

	 	(i)	lawns and shrubbery; 

  

	 	(ii)	water and standby sprinkler charges; 

  

	 	(iii)	exterior lighting; 

  

	 	(iv)	exterior sewer lines; 

  

	 	(v)	exterior utility lines; 

  

	 	(vi)	repair and maintenance of any signs serving the Office Park; 

  

	 	(vii)	snow removal; 

  

	 	(viii)	garbage disposal and recycling; 

  

	 	(ix)	general ground maintenance; 

  

	 	(x)	parking lot, driveways and walkways; 

  

	 	(xi)	maintenance contracts for the roofs, and HVAC units serving office space; 

  

	 	(xii)	pest control; 

  

	 	(xiii)	central station monitoring for fire sprinkler system; 

  

					
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	 	(xiv)	the annual insurance premiums charged to the Landlord for insurance coverage set forth in Paragraph 8.1(d); and 

  

	 	(xv)	other ordinary maintenance expenses normally incurred by Landlord. 

  
 (b) A management fee of $.78 per square foot of the Leased Premises. 
  
 (c) The real estate and personal property taxes assessed against the Office Park for land, buildings, and improvements,
along with any levy for the installation of improvements affecting the Office Park assessed by any governmental body having jurisdiction thereof. The real estate tax obligation of the Tenant shall include any tax or imposition for parking lot usage
which may be levied by any governmental body having jurisdiction thereof. In addition to its Proportionate Share of the above items, Tenant shall pay all real estate taxes assessed by the municipality on its Tenant Improvements, whether paid for by
Landlord or Tenant. 
  
 (d) The annual insurance premiums charged
to the Landlord for insurance coverage which insures the buildings in the Office Park. The insurance shall be for the full replacement value of all insurable improvements with any customary extensions of coverage including, but not limited to
vandalism, malicious mischief, sprinkler damage, comprehensive liability, and insurance for one year’s rent. Any increase in the insurance premiums due to a change in rating of the Building which is solely attributable to Tenant’s use or
due to special Tenant equipment, shall be paid entirely by the Tenant. Tenant expressly acknowledges that Landlord shall not maintain insurance on Tenant’s furniture, fixtures, machinery, inventory, equipment or other personal property.

  
 8.2 During the first year of the lease term, the Landlord
shall estimate the Common Area Expenses based upon its experience with similar buildings in the Office Park and its sound business judgment as to likely increases in such Expenses. Landlord shall furnish such estimate to the Tenant and Tenant shall
pay its Proportionate Share monthly together with the Base Rent. Within ninety (90) days after expiration of the first calendar year of the lease term, the Landlord shall furnish to Tenant a detailed breakdown of the actual Common Area Expenses.
Tenant shall have the right, within 60 days of receipt of the breakdown, and during normal business hours, to examine Landlord’s books and records with respect to the Common Area Expenses. In the event Tenant’s Proportionate Share shall be
greater than the aggregate paid by the Tenant during the prior period, 

  

					
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Tenant shall pay any difference, in one lump sum, within 30 days after demand. In the event Tenant shall have overpaid its Proportionate Share, any such
overage shall be applied to the Common Area Expenses prospectively due under the Lease. This procedure shall be followed during each year of the lease term, and at the expiration of the Lease, any overage or underage shall be credited or paid after
computation by the Landlord within 30 days, which obligation of Landlord and Tenant shall survive the expiration of the lease term. Subsequent to the first year of the Lease, in estimating the common Area Expenses for the coming year, Landlord shall
take into account the actual Common Area Expenses for the prior year. Tenant’s Proportionate Share of Common Area Expenses for any calendar year, part of which falls within the term of this Lease and part of which does not, shall be
appropriately prorated. 
  
 8.3 If at any time during the term of
this Lease the method or scope of taxation prevailing at the commencement of the lease term shall be altered, Tenant’s Proportionate Share of such substituted tax or imposition shall be payable and discharged by the Tenant in the manner
required pursuant to the law which shall authorize such change. 
  
 8.4 (a) The Tenant covenants and agrees that it will, at its sole cost and expense, carry liability insurance covering the Leased Premises in the minimum amount of $1,000,000.00 per accident for 1 person, $3,000,000.00 per accident for 2 or
more persons, and a minimum amount of $300,000.00 for property damage. The Tenant shall add the Landlord as a party insured on such policy and will furnish Landlord with a certificate of said liability insurance prior to the Commencement Date, or if
applicable, prior to its entry on to the Leased Premises for performance of any fit up work, whichever date first occurs. The certificate shall contain a clause that the policy will not be canceled except on 10 days written notice to the Landlord.

  
 (b) Tenant shall at all times, at its own cost and expense,
carry sufficient “All Risks” property insurance on a replacement cost basis to avoid any coinsurance penalties in applicable policies on all of Tenant’s furniture, furnishings, fixtures, machinery, equipment and installations as well
as on any alterations or improvements made to the Leased Premises by Tenant at its own cost and expense subsequent to the Commencement Date. Such coverage is to include property undergoing additions and alteration, and shall cover the value of
equipment and supplies awaiting 

  

					
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installation. On as annual basis, Tenant shall furnish Landlord with certificates of the existence of such insurance. 
  
 8.5 The parties covenant and agree that the insurance policies required to be
furnished in accordance with the terms and conditions of this Lease, or in connection with insurance policies which they obtain insuring such insurable interest as Landlord or Tenant may have in its own properties, whether personal or real, shall
expressly waive any right of subrogation on the part of the insurer against the Landlord or Tenant. Landlord and Tenant each mutually waive all right of recovery against each other, their agents, or employees for any loss, damage or injury of any
nature whatsoever to property or person for which either party is required by this Lease to carry insurance. 
  
 9. SIGNS 
  
 At its sole expense, the Tenant shall have the right to install at the Leased Premises, at a location to be approved by the Landlord, only such signs as
are required by Tenant for the purpose of identifying the Tenant, which signs are compatible with the design plan for the complex of buildings at the Office Park and are approved by the Landlord. The signs shall comply with the rules and regulations
of the applicable governmental boards and bureaus having jurisdiction thereof. The installation of such signs shall not cause any structural damage to the Building. 
  
 10. ASSIGNMENT AND SUBLETTING 
  
 10.1 The Tenant may not assign or sublet the Leased Premises or any part thereof, unless it shall first advise the Landlord
in writing, by certified mail, return receipt requested. In such event, the Landlord shall have 45 days from receipt of such notice to elect to re-capture the Leased Premises and terminate the Lease or to consent to the assignment of the Lease or
the sublease of the Leased Premises. If Landlord fails to respond in the 45 days, consent is deemed given. However, Tenant shall be permitted to assign this Lease or sublease the premises, without the consent of Landlord but with notice to Landlord,
to (i) a wholly-owned subsidiary, or a parent (ii) any corporation, partnership, trust, limited liability company or similar entity under the direct or indirect control of Tenant (collectively, “Tenant’s Affiliates”); or (iii) any
joint venture or similar arrangement as to which Tenant or Tenant’s Affiliates are a party. Subject to its right of recapture, Landlord shall not unreasonably withhold its consent to an assignment of this Lease to an entity that 

  

					
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acquires substantially all of Tenant’s assets, provided that either (x) Chrysalis International Corporation (“International”) remains the
guarantor of this Lease or (y) a person or entity is substituted for International as guarantor of this Lease (the “Substitute Guarantor”) which has a net worth at least equal to that of International at the time of the assignment, and
provided further that the Substitute Guarantor assumes all of International’s obligations under its guaranty of this Lease. Upon such assumption, International shall be relieved of any further obligation under its guaranty of this Lease. Tenant
shall reimburse Landlord for its reasonable attorneys’ fees actually incurred in negotiating the documentation for such assignment and substitution of guarantor. 
  
 10.2 If Landlord elects to recapture the Leased Premises, Tenant shall surrender the Leased Premises no later then 90 days
after Landlord’s written notice of its election to recapture. 
  
 10.3 In connection with any permitted assignment or subletting, (i) the Tenant shall pay monthly to the Landlord one-half of any increment in rent received by Tenant per square foot over the rent then in effect during the year of the
assignment or subletting, which payment shall be made monthly together with the required rent hereunder, and (ii) if Tenant receives any consideration for value attributable to such assignment or subletting, Landlord shall be paid 50% of any such
consideration or value within 10 days after receipt of the same by Tenant. Deducted from the consideration payable by Tenant to Landlord shall be Tenant’s actually incurred documented reasonable costs directly related to the subletting or
assigning, including without limitation, real estate brokerage commissions and fees, reasonable attorneys’ fees and build-out costs. As a condition hereunder, Tenant warrants and represents to Landlord that it will furnish to Landlord a copy of
all pertinent documents with respect to any such assignment or subletting so as to establish Tenant’s obligation to Landlord hereunder. 
  
 10.4 In the event of any assignment or subletting permitted by the Landlord, the Tenant shall remain and be directly and primarily responsible for payment
and performance of the within Least obligations (except as contemplated by Section 10.1, above where there is an assignment to an entity that acquires substantially all of Tenant’s assets and there is a Substitute Guarantor), and the Landlord
reserves the right, at all times, to require and demand that the Tenant pay and perform the terms and conditions of this Lease. No such assignment or subletting shall be made to any Tenant who shall occupy the Leased Premises for any use other than
that which is permitted to the Tenant 

  

					
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pursuant to Paragraph 6, above, or for any use which may be deemed disreputable or extra hazardous, or which would in any way violate applicable laws,
ordinances or rules and regulations of governmental boards and bodies having jurisdiction. 
  
 11. FIRE AND CASUALTY 
  
 11.1 In case of any damage to or destruction of any portion of the Building of which the Leased Premises is a part by fire or other casualty occurring during the term of this lease (or previous thereto), which shall render at least 1/3 of
the floor area of the Leased Premises untenantable or unfit for occupancy, which damage cannot be repaired within 120 days from the happening of such casualty, using reasonable diligence (“Total Destruction”) then the term hereby created
shall, at the option of either of the parties, upon written notice to the other within 15 days of such fire or casualty, cease and become null and void from the date of such Total Destruction. In such event the Tenant shall immediately surrender the
Leased Premises to the Landlord and this Lease shall terminate. The Tenant shall only pay rent to the time of such Total Destruction. However, in the event of Total Destruction if the parties shall elect not to cancel this lease within the 15 day
period the Landlord shall repair and restore the same to substantially the same condition as it was prior to the damage or destruction, with reasonable speed and dispatch. The rent shall not be accrued after said damage or while the repairs and
restorations are being made, but shall recommence immediately after restoration of the Leased Premises to “Substantial Completion” as hereinbefore defined. In any case where Landlord must restore, consideration shall be given for delays
which would justify non-performance under the Force Majeure paragraph in this Lease. Whether or not this Lease has been terminated as a result of a casualty, in every instance, all insurance proceeds payable as a result of damage or destruction to
the Building shall be paid to Landlord as its sole and exclusive property. 
  
 11.2 In the event of any other casualty which shall not be tantamount to Total Destruction the Landlord shall repair and restore the Building and the Leased Premises to substantially the condition as they were prior
to the damage or destruction, with reasonable speed and dispatch. The rent shall abate or be equitable apportioned as to any portion of the Leased Premises which shall be unfit for occupancy by the Tenant, or which cannot be used by the Tenant to
conduct it business. The rent shall recommence immediately after restoration of the Leased Premises to “Substantial Completion” as hereinbefore defined. 
  

					
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 11.3 In the event of any uninsured casualty (which is not uninsured as a result of Landlord’s
failure to renew a policy), the Landlord may elect to treat the casualty as though it had insurance or it may terminate the lease. If it treats the casualty as though it had insurance then the provisions of this paragraph shall apply. The Landlord
shall serve a written notice upon the Tenant within 15 days of the casualty specifying the election which it chooses to make. 
  
 11.4 In the event the Landlord rebuilds, the Tenant agrees, at its cost and expense, to forthwith remove any and all of its equipment, fixtures, stock and
personal property in order to permit Landlord to expedite the construction. The Tenant shall assume at its sole risk the responsibility for damage to or security of such fixtures and equipment in the event that any portion of the building area has
been damaged and is not secure. 
  
 12. COMPLIANCE WITH LAWS,
RULES AND REGULATIONS 
  
 12.1 (a) The Tenant agrees that
upon acceptance and occupancy of the Leased Premises, it will, at its own cost and expense, comply with all statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and Municipal governments arising from the operations
of Tenant at the Leased Premises. The Tenant also agrees that it will not commit any nuisance, and will dispose of all garbage and waste in connection with its operations so as to avoid unreasonable emissions of dirt, fumes, odors or debris.

  
 (b) The Tenant agrees, at its own cost and expense, to comply
with such regulations or requests as may be required by the fire or liability insurance carriers providing insurance for the Leased Premises, and the Board of Fire Underwriters, in connection with Tenant’s use and occupancy of the Leased
Premises; provided, however, that if any such regulation or request is of general applicability and requires a capital improvement (i.e. the capital improvement is not requested or required as a result of Tenant’s specific use of or operations
at the Leased Premises) then Tenant shall only be responsible for the payment of that portion of the capital expenditure as the remaining balance of the term bears to the useful life of the capital expenditure, and Landlord shall be responsible for
the payment of the difference. Tenant’s portion of the capital improvement shall be amortized over the balance of the term of this Lease, and shall be payable in monthly installments on the first day of each month. 
  

					
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 12.2 In case the Tenant shall fail to comply with all material provisions of the aforesaid statutes,
ordinances, rules, orders, regulations and requirements then the Landlord may, after 10 days’ notice (except for emergency repairs, which may be made immediately), enter the Leased Premises and take any reasonable actions to comply with them,
at the cost and expense of the Tenant. The cost thereof shall be added to the next month’s rent and shall be due and payable as such, or the Landlord may deduct the same from the balance of any sum remaining in the Landlord’s hands. This
provision is in addition to the right of the Landlord to terminate this Lease by reason of any default on the part of the Tenant. However, in the event that all necessary repairs are made by Tenant, the initial failure to comply with the aforesaid
laws and regulations shall not constitute an event of default. 
  
 12.3 Tenant expressly covenants and agrees to indemnify, defend and save the Landlord harmless against any claim, damage, liability, cost, penalties, or fines which the Landlord may suffer as a result of air, ground or water pollution
caused by the Tenant in its use of the Leased Premises. The Tenant covenants and agrees to notify the Landlord immediately of any claim or notice served upon it with respect to any claim that the Tenant is causing air, ground or water pollution; and
the Tenant shall take immediate steps to halt, remedy or cure any pollution of air, ground or water caused by the Tenant by its use of the Leased Premises. 
  
 12.4 Tenant expressly covenants and agrees to fully comply with the provisions of the New Jersey Industrial Site Recovery Act (N.J.S.A.13:1K-6 et seq.)
“ISRA”, and its regulations, prior to the termination of the Lease or at any time that any action of the Tenant triggers the applicability of ISRA. In particular, the Tenant agrees that it shall comply with the provisions of ISRA in the
event of any “closing, terminating or transferring” of Tenant’s operations, as defined by and in accordance with the ISRA regulations. In the event evidence of such compliance is not delivered to the Landlord prior to surrender of the
Leased Premises by the Tenant to the Landlord, it is understood and agreed that the Tenant shall be liable to pay to the Landlord an amount equal to two times the Base Rent then in effect, together with all applicable Additional Rent from the date
of such surrender until such time as evidence of compliance with ISRA has been delivered to the Landlord, and together with any costs and expenses incurred by Landlord in enforcing Tenant’s obligations under this paragraph. Evidence of
compliance, as used herein, shall mean a “letter of non-applicability” issued by the New 

  

					
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Jersey Department of Environmental Protection (“NJDEP”), an approved “negative declaration” or a “remedial action work plan”
which has been fully implemented and approved by the NJDEP. Evidence of compliance shall be delivered to the Landlord, together with copies of all submission made to the NJDEP, including all environmental reports, test results and other supporting
documentation. In addition to the above, Tenant agrees that it shall cooperate with Landlord in the event ISRA is applicable to any portion of the property of which the Leased Premises are a part. In such case, Tenant agrees that it shall fully
cooperate with Landlord in connection with any information or documentation which may be requested by the NJDEP. In the event that any remediation of the Property is required in connection with the conduct by Tenant of its business at the Leased
Premises, Tenant expressly covenants and agrees that it shall be responsible for that portion of the remediation which is attributable to the Tenant’s operation. Tenant hereby represents and warrants that its Standard Industrial Classification
No. is 8731 and that Tenant shall not generate, manufacture, refine, transport, treat, store, handle or dispose of “hazardous substances” as the same are defined under ISRA and the regulations promulgated pursuant thereto, except in strict
compliance with all governmental rules, regulations and procedures. Tenant hereby agrees that it shall promptly inform Landlord of any change in its SIC number, and obtain Landlord’s consent for any voluntary change in its SIC number which
would subject the Leased Premises to ISRA, and obtain Landlord’s consent for any change in the nature of the business to be conducted in the Leased Premises. The within covenants shall survive the expiration or earlier termination of the lease
term. 
  
 13. INSPECTION BY LANDLORD 
  
 The Tenant agrees that the Landlord shall have the right to enter into the
Leased Premises at all reasonable hours for the purpose of examining the same upon reasonable advance notice of not less than 24 hours (except in the event of emergency), or to make such repairs as are necessary, subject to the provisions of the
last sentence of this Paragraph. Any repairs shall not unduly interfere with Tenant’s use of the Leased Promises. Unless Tenant permits otherwise, Landlord shall only enter the non-office portions of the Leased Premises: (a) when accompanied by
a duly-authorized representative of Tenant; (b) when wearing any and all protective clothing or equipment that Tenant may require Landlord to wear to alleviate disturbance of Tenant’s operations in such non-office 

  

					
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portions, (c) at hours and in a manner which will not disturb or unduly interfere with Tenant’s operations in such non-office portions; and (d)
accompanied by a representative of Tenant. 
  
 14. DEFAULT BY
TENANT 
  
 14.1 Each of the following shall be deemed a
default by Tenant and a breach of this lease: 
  

	 	(a)	(1) filing of a petition by the Tenant for adjudication as a bankrupt, or for reorganization, or for an arrangement under any federal or state statute, except in a Chapter 11
Bankruptcy where the Base Rent and Additional Rent stipulated herein is being paid and the terms of the lease are being complied with; 

  

	 	(2)	dissolution or liquidation of the Tenant; 

  

	 	(3)	appointment of a permanent receiver or a permanent trustee of all or substantially all of the property of the Tenant, if such appointment shall not be vacated within 60 days,
provided the Base Rent and Additional Rent stipulated herein is being paid and the terms of the lease are being complied with, during said 60 day period; 

  

	 	(4)	taking possession of the property of the Tenant by a governmental officer or agency pursuant to statutory authority for dissolution, rehabilitation, reorganization or liquidation of
the Tenant if such taking of possession shall not be vacated within 60 days, provided the rent and Additional Rent stipulated herein is being paid and the terms of the lease are being complied with, during said 60 day period;

  

	 	(5)	making by the Tenant of an assignment for the benefit of creditors; 

  

	 	(6)	abandonment, desertion or vacation of the Leased Premises by the Tenant, unless Tenant gives Landlord proof of the arrangement for periodic inspections of the Leased Premises so as
assure compliance with Tenant’s obligations for maintenance and repair of the Leased Premises. 

  

					
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 (b) Default in the payment of the rant or Additional Rent herein reserved or any part thereof, which
continues for 10 days. 
  
 (c) A default in the performance of any
other covenant or condition of this Lease on the part of the Tenant to be performed for a period of 30 days after notice. However, no default on the part of Tenant shall be deemed to exist if it diligently commences efforts to rectify same and
Landlord is indemnified against loss or liability arising from the default. 
  
 14.2 In the event of any default set forth above, Landlord may sere a written notice upon the Tenant electing to terminate this lease upon a specified date not less than 10 days after the date of serving such notice
and this Lease shall then expire on the date so specified as if that date had been originally fixed as the expiration date of the term herein granted. 
  
 14.3 In case this Lease shall be terminated Landlord or its agents may, immediately or any time thereafter, re-enter and resume possession of the Leased
Premises or such part thereof and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law, without being liable for any damages therefor. No re-entry by Landlord shall be deemed an
acceptance of a surrender of this lease. However, if the Tenant is in default and moves out, or is dispossessed, and fails to remove any property, machinery, equipment and fixtures or other property within 10 days after such default, dispossession
or removal, then and in that event, the said property, machinery, equipment and fixtures or other property shall at the option of the Landlord, be deemed to be abandoned, or the Landlord may remove such property and charge the reasonable cost and
expense of removal and storage to the Tenant. The Tenant shall be liable for any damage which it causes in the removal of said property from the Leased Premises. 
  
 14.4 In case this Lease shall be terminated Landlord may relet the whole or any portion of the Leased Premises, for any
period equal to or greater or less than the remainder of the then current term, for any sum which it may deem reasonable, to any tenant which it may deem suitable and satisfactory, and for any use and purpose which it may deem appropriate. Landlord
shall make reasonable efforts to mitigate its damages and to relet the Leased Premises in connection with any such lease Landlord may make such changes in the character of the improvements on the Leased Premises as Landlord may determine to be
appropriate or helpful in effecting such lease and may 

  

					
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grant concessions or free rent. Landlord shall not in any event be required to pay Tenant any sums received by Landlord on a reletting of the Leased
Premises. 
  
 14.5 In the event this Lease is terminated and
whether or not the Leased Premises be relet, Landlord shall be entitled to recover from the Tenant all rent due and all expenses, including reasonable counsel fees, incurred by Landlord in recovering possession of the Leased Premises, and all
reasonable costs and charges for the care of the Leased Premises while vacant, which damages shall be due at such time as they are incurred by Landlord; and a sum equal to all damages set forth in this Paragraph 14 and in Paragraph 15. Without any
previous notice or demand, separate actions may be maintained by Landlord against Tenant from time to time to recover any damages which have become due and payable to the Landlord without waiting until the end of the term. 
  
 15. LIABILITY OF TENANT FOR DEFICIENCY 
  
 In the event that the relation of the Landlord and Tenant terminates by
reason of 
  
 (a) a default by the Tenant and the re-entry of the
Landlord as permitted herein; 
  
 (b) by the ejectment of the
Tenant by summary proceedings or other judicial proceedings; it is hereby agreed that the Tenant shall remain liable to pay in monthly payments the rent and any other charges which shall accrue. The Tenant expressly agrees to pay as damages for such
breach of this Lease the difference between the rent reserved and the rent received, if any, by the Landlord, during the remainder of the unexpired term. 
  
 16. NOTICES 
  
 All notices required by this Lease shall be given by certified mail, return receipt requested, overnight courier with signature required of the Landlord,
or personal delivery with receipt, at the address set forth on the first page of this lease, and/or such other place as the parties may designate in writing; provided, however, that upon the Commencement Date, notice shall be given to Tenant at the
Leased Premises. A duplicate of any notice to Tenant shall be given to its corporate offices at: 573 Route 28, Raritan, New Jersey 08869. All notices sent by certified mail shall be deemed given three (3) days after deposit in the U.S. Mail.

  

					
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 17. NON-WAIVER BY PARTIES 
  
 The failure of either party to insist upon the strict performance of any of the terms of this Lease, or to exercise any
option contained herein, shall not be construed as a waiver of any such term. Acceptance by either party of performance of anything required by this Lease to be performed, with the knowledge of the breach of any term of this Lease, shall not be
deemed a waiver of such breach, nor shall acceptance of rent by Landlord in a lesser amount than is due (regardless of any endorsement on any check, or any statement in any letter accompanying my payment of rent) be construed either as an accord and
satisfaction or in any manner other than as payment on account of the earliest rent then unpaid by Tenant. No waiver by either party of any term of this Lease shall be deemed to have been made unless expressed in writing and signed by the party
making the waiver. 
  
 18. RIGHT OF TENANT TO MAKE ALTERATIONS
AND IMPROVEMENTS 
  
 Upon advance notice to Landlord as to
the particulars thereof, Tenant may make nonstructural alterations, additions or improvements to the Leased Premises, provided the aggregate cost of same shall be less than One Hundred Thousand ($100,000.00) Dollars, provided that no such change
shall involve changing of the door locks or window coverings of an alteration of access to the Leased Premises (which changes shall require the consent of Landlord). If greater than $100,000, then Tenant must obtain the prior written consent of
Landlord, which shall not be unreasonably withheld or delayed. Tenant shall furnish to Landlord as-built drawings of any alterations, additions or improvements which are made, with an adjustment of rent applicable to any change in the character of
the space, such as from warehouse to office. Landlord agrees to review any alteration, addition, or improvements proposed by Tenant within 10 days of receipt of plans and specifications, and advise Tenant of its decision. If Landlord does not
respond within ten (10) days of receipt of plans and specifications, consent shall be deemed to have been given. Any approval given is not intended to subject the Landlord’s property to liability under any lien law. Tenant shall be responsible
for obtaining at its own cost and expense all licenses, permits and approvals that may be required by any governmental entity having jurisdiction over the approved alterations, additions and/or improvements. Landlord’s approval shall indicate
whether Tenant is required to remove the proposed alteration or improvement at the end of the term; provided, however, that even if Landlord fails to indicate such requirement, it may nevertheless require the alteration or improvement to be removed
by Tenant upon notice given not less than six (6) months prior to the end of the term, if the 

  

					
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alteration or improvement has deteriorated beyond normal wear and tear or would otherwise constitute a nuisance or health hazard if the same were to remain
in the Leased Premises after the end of the term; it being understood and agreed, however, that no deterioration beyond normal wear and tear shall be permitted by Tenant during the last six months of the term. 
  
 19. NON-LIABILITY OF LANDLORD 
  
 Subject to the provisions of Paragraph 8.5, unless caused by Landlord’s
negligence, Tenant agrees to assume all risk of damage to its property, equipment and fixtures occurring in or about the Leased Premises, whatever the cause of such damage or casualty. Landlord shall not be liable for any damage or injury to
property or person caused by or resulting from steam, electricity, gas, water, rain, ice or snow, or any leak or flow from or into any part of the Building or from any damage or injury resulting or arising from any other cause or happening
whatsoever, unless arising from negligence of Landlord, its agents, employees or invitees. 
  
 20. RESERVATION OF EASEMENT 
  
 Landlord reserves the right, easement and privilege to enter the Leased Premises in order to install, at its own cost and expense, any storm drains and sewers and/or utility lines as may be required by the Landlord. It is understood and
agreed that if such work as may be required by Landlord requires an installation to the common areas which may displace any paving, lawn, seeded area or shrubs the Landlord shall, at its own cost and expense, restore or redesign said paving, lawn,
seeded area or shrubs. The Landlord covenants that the foregoing work shall not unreasonably interfere with the normal operation of Tenant’s business. 
  
 21. STATEMENT OF ACCEPTANCE 
  
 Upon the delivery of the Leased Premises to the Tenant the Tenant covenants and agrees that it will furnish to Landlord a statement which shall set forth
the Date of Commencement and the Date of Expiration of the lease term. 
  
 22. FORCE MAJEURE 
  
 Except for the obligation
of the Tenant to pay rent and other charges, the period of time during which the Landlord or Tenant is prevented from performing any act required to be performed 

  

					
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under this Lease by reason of fire, catastrophe, strikes, lookouts, civil commotion, acts of God, weather conditions, government prohibitions or preemptions
or embargoes, inability to obtain material or labor by reason of governmental regulations, the act or default of the other party, or other events beyond the reasonable control of Landlord or Tenant, as the case may be, shall be added to the time for
performance of such act. 
  
 23. STATEMENTS BY LANDLORD AND
TENANT 
  
 Landlord and Tenant agree at any time and from
time to time upon not less than five (5) days’ prior notice from the other to execute, acknowledge and deliver to the party requesting same, a statement in writing, certifying that this lease is unmodified and in full force and effect (or if
there have been modifications, that the same is in full force and effect as modified and stating the modifications), that it is not in default (or if claimed to be in default, stating the amount and nature of the default) and specifying the dates to
which the basic rent and other charges have been paid in advance. 
  
 24. CONDEMNATION 
  
 24.1 If due to condemnation,
(i) more than 15% of the Leased Premises is taken or rendered untenantable, or (ii) more than 25% of the ground is taken (including parking areas, but excluding front, side and rear set back areas) and, in Landlord’s opinion, said taking
unreasonably or unduly interferes with the use of the Leased Premises, the lease term created shall terminate from the date when the authority exercising the power of eminent domain takes or interferes with the use of the Property. The Tenant shall
be responsible for the payment of rent until the time of surrender. In any event, no part of the Landlord’s condemnation award shall be claimed by the Tenant. Without diminishing Landlord’s award, the Tenant shall have the right to make a
claim against the condemning authority for such independent claim which it may have for business interruption and/or moving expense, but in no event shall Tenant’s claim serve to decrease the amount of Landlord’s entitlement to the
condemnation award. 
  
 24.2 In the event of any partial taking
which would not be cause for termination of the Lease, or in the event of any partial taking in excess of the percentages provided above and Tenant retains the balance of the Leased Premises remaining after such taking, then the rent shall abate in
an 

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	26	 	 

 
amount to be mutually agreed upon between the Landlord and Tenant based on the relationship that the character of the property prior to the taking bears to
the property which shall remain after the condemnation. The Landlord shall, to the extent permitted by applicable law and as the same may be practicable promptly make such repairs and alterations in order to restore the Building and/or improvements
to usable condition to the extent of any condemnation award received by Landlord. 
  
 25. LANDLORD’S REMEDIES 
  
 25.1 The rights and remedies given to the Landlord in this lease are distinct, separate and cumulative remedies, and no one of them, whether or not exercised by the Landlord, shall be deemed to be in exclusion of any of the others.

  
 25.2 In addition to any other legal remedies for violation or
breach of this lease by the Tenant or by anyone holding or claiming under the Tenant such violation or breach shall be restrainable by injunction at the suit of the Landlord. 
  
 25.3 No receipt of money by the Landlord from any receiver, trustee or custodian or debtors in possession shall reinstate,
continue or extend the term of this lease or affect any notice theretofore given to the Tenant, or to any such receiver, trustee custodian or debtor in possession, or operate as a waiver or estoppel of the right of the Landlord to recover possession
of the Leased Premises for any of the causes therein enumerated by any lawful remedy; and the failure of the Landlord to enforce any covenant or condition by reason of its breach by the Tenant shall not be deemed to void or affect the right of the
Landlord to enforce the same covenant or condition on the occasion of any subsequent default or breach. 
  
 26. QUIET ENJOYMENT 
  
 The Landlord covenants that the Tenant, on paying the rental and performing the covenants and conditions contained in this Lease, may peaceably and
quietly have, hold and enjoy the Leased Premises for the Lease term, subject to the provisions hereof. 
  
 27. SURRENDER OF PREMISES 
  
 On the last day, or earlier permitted termination of the Lease term, Tenant shall quit and surrender the Leased Premises in good and orderly condition and
repair (reasonable wear and tear, 

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	27	 	 

 
and damage by fire or other casualty excepted) and shall deliver and surrender the Leased Premises to the Landlord peaceably, together with all alterations
and improvements to the Leased Premises. Subject to the provisions of Paragraph 18, the Landlord reserves the right, however, to require the Tenant at its cost and expense to remove any alterations or improvements installed by the Tenant, and
restore the Leased Premises to its original state, normal wear and tear excepted. Prior to the expiration of the Lease term the Tenant shall remove all of its property, fixtures, equipment and trade fixtures from the Leased Premises. All property
not removed by Tenant shall be deemed abandoned by Tenant, and Landlord reserves the right to charge the reasonable cost of such removal to the Tenant. Unless Landlord and Tenant mutually acknowledge in writing that they are then engaged in good
faith negotiations for an extension of this Lease, if the Leased Premises are not surrendered at the end of the Lease term, the Tenant shall be liable for 150% of the rent then payable at such time, and Tenant shall indemnify Landlord against loss
or liability resulting from delay by Tenant in surrendering the Leased Premises, including, without limitation any claims made by any succeeding tenant founded on the delay, and any loss of income suffered by Landlord. Within thirty (30) days after
cessation of the good faith negotiations without any agreement for the extension of this Lease having been achieved, the Tenant shall become liable in accordance with the immediately preceding sentence. These covenants shall survive the termination
of the Lease. 
  
 28. INDEMNITY 
  
 Anything in this Lease to the contrary notwithstanding, and without limiting
the Tenant’s obligation to provide insurance hereunder the Tenant covenants and agrees that it will indemnify, defend and save harmless the Landlord against and from all liabilities, obligations, damages, penalties, claims, costs, charges and
expenses, including without limitation reasonable attorneys’ fees, which may be imposed upon or incurred by Landlord by reason of any of the following occurring during the term of this Lease: 
  
 (a) Any matter, cause or thing arising out of Tenant’s use, occupancy,
control or management of the Leased Premises and any part thereof unless arising from negligence of Landlord, its agents, employees or invitees; 
  
 (b) Any negligence on the part of the Tenant or any of its agents, contractors, servants, employees, licensees or invitees; 
  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	28	 	 

 (c) Any accident, injury, damage to any person or property occurring in, or about the Leased Premises,
unless arising from negligence of Landlord, its agent, employees or invitees; 
  
 (d) Any failure on the part of Tenant to perform or comply with any of its covenants, agreements, terms or conditions contained in this Lease. 
  
 Landlord shall promptly notify Tenant of any such claim asserted against it and shall promptly send to Tenant copies of all
papers or legal process served upon it in connection with any action or proceeding brought against Landlord. 
  
 29. BIND AND INURE CLAUSE 
  
 The terms, covenants and conditions of this Lease shall be binding; upon, and intro to the benefit of, each of the parties hereto and their respective
heirs, successors and assigns. 
  
 30. INCLUSIONS

  
 The neuter gender when used herein, shall include all persons
and corporations, and words used in the singular shall include words in the plural where the text of the instrument so requires. 
  
 31. DEFINITION OF TERM “LANDLORD” 
  
 When the term “Landlord” is used in this Lease it shall be construed to mean and include only the owner of title to the Building. Upon the
transfer by the Landlord of the title, the Landlord shall advise the Tenant in writing by certified mail, return receipt requested, of the name of the Landlord’s transferee. In such event, the Landlord shall be automatically freed and relieved
from and after the date of such transfer of title of all personal liability with respect to the performance of any of the covenants and obligations on the part of the Landlord herein contained to be performed, provided any such transfer and
conveyance by the Landlord is expressly subject to the assumption by the transferee of the obligations of the Landlord hereunder. Notwithstanding the foregoing, Landlord shall remain liable for the guaranty set forth in Paragraph 7.1 (b) in the
event that the transferee fails in its performance thereof. 
  
 32. COVENANTS OF FURTHER ASSURANCES 
  
 If, in
connection with obtaining financing for the property of which the Leased Premises are apart, the mortgage lender shall request reasonable modifications in this lease as a condition to such 

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	29	 	 

 
financing, Tenant will not unreasonably withhold, delay or refuse its consent thereto, provided that such modifications do not in Tenant’s reasonable
judgment increase the obligations of Tenant hereunder in any significant manner or materially adversely affect the leasehold interest hereby created or Tenants use and enjoyment of the Leased Premises. 
  
 33. COVENANT AGAINST LIENS 
  
 Tenant agrees that it shall not encumber, or permit to be encumbered, the
Leased Premises or the fee thereof by any lien charge or encumbrance, and Tenant shall have no authority to mortgage or hypothecate this Lease in any way whatsoever. Any violation of his Paragraph shall be considered a breach of this Lease.

  
 34. SUBORDINATION 
  
 This Lease shall be subject and subordinate at all times to the lien of any
mortgages or ground leases or other encumbrances now or hereafter placed on the land and Building and Leased Premises without the necessity of any further instrument or act on the part of Tenant to effectuate such subordination, provided that
Landlord obtains a subordination, Attornment and nondisturbance agreement (a “SNDA Agreement”) from any such mortgagee or ground lessee, Tenant agrees to execute such further documents evidencing the subordination of the Lease to the lien
of any mortgage or ground lease as shall be desired by Landlord. Tenant appoints Landlord the attorney in fact of the Tenant irrevocably, to execute and deliver any such instrument or instruments for and in the name of Tenant. Unless and until
Landlord obtains a SNDA Agreement, Tenant shall not be required to pay rent; however, if it elects not to pay rent, it shall not be permitted to occupy the Leased Premises. 
  
 35. EXCULPATION OF LANDLORD 
  

Neither Landlord nor its principals shall have any personal obligation for payment of any indebtedness or for the performance of any obligation under
this Lease. The performance of Landlord’s obligations expressed herein may be enforced only against the Leased Premises, and the rents, issues and profits thereof. The Tenant agrees that no deficiency judgment or other judgment for money
damages shall be entered by it against the Landlord or its principals personally in any action. 
  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	30	 	 

 36. NET RENT 
  
 It is the intent of the Landlord and Tenant that this Lease shall yield, net to Landlord, the rent specified and all
Additional Rent and charges in each month during the term of the Lease, and that all costs, expenses and obligations of every kind relating to the Lease Premises shall be paid by the Tenant, unless expressly assumed by the Landlord. 
  
 37. SECURITY 
  
 As security for the full and faithful performance of its obligations under
this Lease, Tenant shall deposit with Landlord a sum equal to the Base Rent for the first year of the term, as follows: the sum of $307,560 upon the execution date of this Lease, and a like sum on October 15, 1998, January 15, 1999, and the
Commencement Date of this Lease. Said four installments equal the sum of $1,230,240.00 which is projected to be the Base Rent for the first year of the Term, assuming that the Construction Budget equals $185.00 per square foot. In substitution for
cash, Tenant may deliver a clean irrevocable letter of credit (an “LC”), each in the foregoing amounts (or a substitute LC equal to the amount of the prior LC plus the next quarterly amount due). The letter(s) of credit shall be payable
upon presentation of a sight draft in New Jersey, shall have an “evergreen” provision, shall be issued by a bank satisfactory to Landlord, and shall otherwise be in form satisfactory to Landlord and its counsel. At such time as the Base
Rent is finally established, the preceding installments shall be appropriately adjusted so that the LC (or the total of the LC’s, if applicable) equals the Base Rent for the first year of the term of this Lease. Provided that the Tenant is not
in default hereunder and has performed all the conditions of this Lease: upon the second anniversary date of the Commencement Date, the LC shall be decreased by 33%; upon the third anniversary date of the Commencement Date, the LC the shall be
further reduced by 33%; and upon the fourth anniversary date of the Commencement Date, the LC shall he returned to the Tenant; provided, however, that simultaneously therewith, Tenant shall deposit with Landlord a sum equal to two (2) months’
then Base Rent attributable to the original Leased Premises, as security for the full and faithful performance of its obligations under the Lease. Upon termination of this Lease, and providing the Tenant is not in default hereunder and has performed
all of the conditions of this Lease, the Landlord shall return the security deposit to the Tenant. Tenant covenants and agrees that it will not assign, pledge, hypothecate, mortgage or otherwise encumber the security during the term of this Lease.
It is 

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	31	 	 

 
expressly understood and agreed that the Landlord shall not be required to segregate the security, nor shall Tenant be entitled to any interest thereon.
Landlord shall have the right to realize upon the cash security deposit and the letter of credits in any order that it may choose. 
  
 38. BROKERAGE 
  
 The parties mutually represent to each other that no broker is entitled to a commission and that neither party dealt with any broker in connection with
the within Lease other than Insignia/Edward S. Gordon as represented by Ward Greer. In the event either party violates this representation, it shall indemnify and defend the other party harmless from all claims and damages. Landlord shall pay
Insignia/Edward S. Gordon a commission in accordance with a separate agreement. 
  
 39. LATE CHARGES 
  
 In
addition to any other remedy a late charge of 1 1⁄2% per month, retroactive to the date rent or other charges were due, shall be due and payable, without notice from Landlord, on any portion of rent or other charges not paid within 5 days of the
due date. 
  
 40. PRESS RELEASES 
  
 Landlord shall have the right to announce the execution of this Lease, the
parties hereto, and the real estate brokers involved in such press releases as Landlord shall deem advisable. In addition Tenant shall permit Landlord to use its name and photographs of the Leased Premises (all photographs being subject to
Tenant’s prior consent) in Landlord’s marketing brochures and materials, and Tenant agrees to reasonably cooperate with Landlord in such regard, but at no cost or expense to Tenant. 
  
 41. Performance of Work for Tenant Improvements by Approved
Contractor. 
  
 41.1 If pursuant to Paragraph 3.1(a)(iii)B)
the Approved Contractor performs the work for the Tenant Improvements, the terms of this Paragraph 41 shall prevail, and take precedence over all other inconsistent provisions set forth in this Lease. 
  
 41.2 The Commencement Date shall occur on the earlier of Substantial
Completion of the Leased Premises or April 15, 1999, notwithstanding Paragraph 22. 
  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	32	 	 

 41.3 Landlord shall have no obligation to guaranty the work for the Tenant Improvements as set forth in
Paragraph 7.1(b) nor complete any punch list items with respect thereto, it being expressly agreed and understood that Tenant shall look solely to the Approved Contractor for any defects regarding the work for the Tenant Improvements. 
  
 41.4. Landlord’s Allowance shall be advanced to Tenant in equal monthly
installments based upon the number of calendar months projected for completion of the Work for the Tenant Improvements, and shall be limited to $100 per square foot for Improved Space. 
  
 41.5 The Work for the Tenant Improvements shall be promptly completed in a good and workmanlike manner and in compliance
with all legal requirements. Tenant shall be responsible for obtaining all necessary building permits and approvals; however, Landlord agrees to cooperate with Tenant in such regard. 
  
 41.6 During construction of the Work for the Tenant Improvements Tenant shall maintain and/or cause the Approved Contractor
to maintain comprehensive general liability insurance as described in Paragraph 8.4, builder’s risk insurance, worker’s compensation and employer’s liability insurance, all naming Landlord as an additional insured where applicable,
and with carriers and policy limits reasonably satisfactory to Landlord. Certificates of such insurance coverages shall be furnished to Landlord prior to commencement of the Work for the Tenant Improvements. 
  
 41.7 The provisions of Paragraph 28 shall be effective upon commencement of
the Work for the Tenant Improvements. 
  
 42. Waiver of Jury
Trial 
  
 Landlord and Tenant both irrevocably waive a trial
by jury in any action or proceeding between them or their successors or assigns arising out of this Lease or any of its provisions, or Tenant’s use or occupancy of the Leased Premises. 
  
 43. Laws of New Jersey 
  
 Without regard to principles of conflicts of laws, the validity,
interpretation, performance and enforcement of this Lease shall be governed by and construed in accordance with the laws of the 

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	33	 	 

 
State of New Jersey. The sole and exclusive venue for any dispute between the parties shall be in Middlesex County, New Jersey. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this document on the
date first above written. 
  

					
	 Date: 9-3-98
	 	CEDAR BROOK II CORPORATE CENTER, L.P., Landlord
			
	 	 	 By:
	 	 /s/ signature illegible

	 	 	 	 	

		
	 Date: 8-31-98
	 	CHRYSALIS DNX TRANSGENIC SCIENCE CORP., Tenant
			
	 	 	 By:
	 	 /s/ Paul J. Schmidt

	 	 	 	 	

	 	 	 	 	 Paul J. Schmidt
 President

  

					
	 Initial: Landlord ___
	 	 	 	 
	             Tenant    ___
	 	34	 	 

 SCHEDULE A 
  

DESCRIPTION 
  

 SCHEDULE B 
  

LIST OF APPROVED CONTRACTORS 
  
 The Henderson Company 
  
 Torcon 
  
 Turner Construction 
  

 FIRST AMENDMENT TO LEASE AGREEMENT 
  
 THIS FIRST AMENDMENT TO LEASE AGREEMENT (“First Amendment”), made as of August 5, 1999, between CEDAR BROOK
II CORPORATE CENTER, L.P., 1000 Eastpark Boulevard, Cranbury, New Jersey 08512 (“Landlord”); and DNX TRANSGENIC SCIENCE CORP., having an address at 303 College Road East, Princeton, New Jersey 08540, and PHOENIX INTERNATIONAL LIFE
SCIENCES, INC., having an address at 2350 Cohen Street, Saint-Laurent, Montreal, Quebec, Canada H4R 2N6, (collectively “Tenant”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Landlord entered into a certain lease agreement with Chrysalis DNX Transgenic Science Corp. dated August 31, 1998 (the
“Original Lease”) respecting a portion of 5 Cedar Brook Drive, Cranbury, New Jersey 08512, (the “Building”) constituting a portion of the office/industrial park known as CEDAR BROOK CORPORATE CENTER (“Office
Park”); and 
  
 WHEREAS, the parties hereto wish
to amend the Original Lease; and 
  
 WHEREAS, on or about
April 30, 1999, Phoenix International Life Sciences, Inc. (“Phoenix”) acquired Chrysalis DNX Transgenic Sciences Corp., which is now known as DNX Transgenic Science Corp., and which is a wholly-owned subsidiary of Phoenix; and

  
 WHEREAS, Tenant by the execution of this First
Amendment assumes all of the rights, duties and obligations of the tenant in connection with the Original Lease, as herein amended (the “Lease”). 
  
 NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the Landlord and
Tenant do hereby mutually covenant and agree as follows: 
  
 1.
LEASED PREMISES. Paragraph 1.1 of the Original Lease is hereby deleted in its entirety, and the following is substituted therefore: 
  
 1.1 The leased premises shall consist of 41,200 rentable square feet in the Building, consisting of approximately 3,900 square feet of
unimproved space (the “Expansion Space”); all other leased space being sometimes hereinafter referred to as (“Improved Space”), and 37,300 square feet of Improved Space measured from outside of glass to center line
of common wall, of laboratory/office space, as identified on the plans heretofore agreed to by Landlord and Tenant (collectively, the “Leased Premises”), together with all improvements to be constructed thereon by the Landlord for
the use of the Tenant, and all improvements, tenements, hereditaments, fixtures and rights and privileges appurtenant thereto, and any and all fixtures and equipment which are to be installed in said Building by the Landlord for the use of the
Tenant in its occupancy of the Leased Premises and any other expansion space. Tenant shall also have the right to use all common areas of the Building and the Office Park in a similar manner as other Office Park tenants. 
  
 2. Paragraph 2.1 TERM OF LEASE of the Original Lease is hereby amended
to provide that Substantial Completion of the Leased Premises shall occur in two (2) phases, (“Phase I” and “Phase II”), which are projected to occur during August 1999 and on October 1, 1999, respectively. The term
“Commencement Date” shall mean the first day of the next succeeding month following the occurrence of all of the following conditions: 
  
 (a) Landlord shall have achieved Substantial Completion (as that term is defined in Paragraph 3.2 of the Original Lease) of Phase I, and

  
 (b) Water, gas, and electricity utility
service shall be available to Phase I of the Leased Premises and in working order. 
  
 The term of the Lease shall end on the last day of the month in which occurs the tenth (10th) anniversary of the Substantial Completion of
Phase II. 
  
 Tenant’s right to cancel the
Lease set forth in Paragraph 2.1 of the Original Lease is hereby deleted. 
  
 3. Paragraph 3 CONSTRUCTION of the Original Lease is hereby amended so as to: 
  
 (a) recognize that Landlord and Tenant have agreed upon the Plans and the Construction Budget and that the Landlord is performing the
Tenant Improvement Work; 

 (b) recognize that the cost of Tenant’s Improvements for the Improved Space is Two
Hundred Eight ($208.00) Dollars per square foot; that Tenant’s Cost Share (as defined in Paragraph 3.1(b) of the Original Lease) is Twenty-Three ($23.00) Dollars per square foot—the Landlord’s allowance for the construction costs of
Tenant’s Improvements being One Hundred Eighty-Five $185.00) Dollars per square foot; the Tenant’s Cost Share will be adjusted, if appropriate, to reflect change orders and value-engineering credits; 
  
 (c) delete (d) of Paragraph 3.1 in its entirety dealing with
“Unimproved Space” and substitute the following: 
  
 If the Tenant desires to construct the Expansion Space, and have been and are current in all payments under the terms of this Lease Agreement, the Landlord shall construct the space and shall allow the Tenant an allowance of $100 per square
foot. Any construction costs in excess of such allowance shall be the responsibility of the Tenant a shall comprise Tenant’s Cost Share. The Base Rent shall be $26.00 per square foot plus six and one-half cents ($0.065) for each month that
elapses between the Commencement Date and the date of Substantial Completion of the Expansion Space. Alternatively, the Tenant will have the option to perform themselves the construction of the Expansion Space. Prior to commencement of work, the
Tenant must submit drawings to the Landlord for its review and approval and must obtain all necessary governmental permits. The Base Rent for the Expansion Space shall be as per Article 4 of this First Amendment, and there will be no Tenant
improvement allowance. 
  
 (d) recognize in
Paragraph 3.2 that Substantial Completion of the Leased Premises will occur in Phase I and Phase 11, and that rent payments, as hereinafter provided, for each Phase shall commence upon such delivery and the issuance of a Temporary or Permanent
Certificate of Occupancy or a Temporary or Permanent Certificate of Acceptance (“CO/CA”) therefore, provided that the Tenant Improvements installed by Landlord are operable so as to permit Tenant to conduct its business in the
ordinary course without material interference. Upon Substantial Completion of Phase I (i) the Base Rent payable shall equal 70% of the aggregate Base Rent for both Phase I and Phase II; and (ii) 70% of the remaining balance of the Tenant’s Cost
Share and 70% of the Security Deposit shall be due and payable. Upon Substantial Completion of Phase II (i) the Base Rent shall thereupon be payable in full; and (ii) the remaining balance of the Tenant’s Cost Share and Security Deposit shall
be due and payable. The Additional Rent payable pursuant to Paragraph 8 shall be based upon the actual square footage of space of the Leased Premises for which Substantial Completion has occurred. Tenant covenants and agrees to use its best efforts
to mutually cooperate with Landlord so as to enable Substantial Completion of Phase II to occur no later than October 1, 1999. 
  
 4. Paragraph 4 RENT of the Original Lease is hereby amended so as to: 
  
 (a) recognize that the Base Rent for Improved Space shall be Forty-One and 75/100 ($41.75) Dollars (which
includes a $185.00 per square foot allowance for Tenant Improvements), and Eight and 50/100 ($8.50)* Dollars per square foot per annum for the Expansion Space for an aggregate Base Rent of One Million, Five Hundred Ninety Thousand, Four Hundred
Twenty-Five and 00/100 ($1,590,425.00) Dollars; 
  
 (b) to delete Subparagraph 4.1(b) in its entirety, and substitute the following therefore: 
  
 During the second five (5) years of the term, the Base Rent for the Improved Space shall be increased by $3.90 per square foot ($26.00 times a 15%
increase); and the Base Rent for the Expansion Space shall be increased by $1.28 per square foot ($8.50 times a 15% increase); 
  
 (c) to delete Subparagraph 4.1(c) in its entirety, and substitute the following therefore: 
  
 All payments assume rentable square footage as set forth in Paragraph 1.1
above, and all payments are based upon a rental rate of $41.75 per square foot for Improved Space, and $8.50 per square foot for Expansion Space during the term, subject to adjustment as set forth in the immediately preceding Subparagraph and in
Subparagraph 4.1(a), plus the payment of all Additional Rent as herein provided; 
  
 (d) to delete the phrase “Unimproved Space” in Subparagraph 4.1 (d) and substitute therefore the phrase
“Expansion Space”; and 
  
 (e)
to add the following Sections: 
  
 4.5
Notwithstanding Paragraph 4.1, for the two (2) year period following the Commencement Date, Tenant shall not be obligated to pay Base Rent for 2,425 square feet of the Improved Space, but may use the space as they please; however, with respect to
such space, Tenant shall pay Additional Rent pursuant to Paragraph 8.1, except for the management fee described in subsection (b) thereof. 
  
 * Upon completion of Phase II 
  

 -2- 

 5. Paragraph 37 SECURITY is supplemented to provide that the amount of the Security Deposit shall
be adjusted so as to equal the Base Rent for the first year of the term as described in this First Amendment. Upon Substantial Completion of Phase II, the balance of such security deposit shall be made by Tenant with Landlord, less any payments
theretofore made by Tenant pursuant to Paragraph 37 and Subparagraph 3(d) of this First Amendment. 
  
 6. The Recitals of this First Amendment are incorporated into the body of this Agreement as if set forth at length. 
  
 7. To the extent of any inconsistency between the terms of this First
Amendment and those of the Original lease, the former shall govern. Except as amended herein, the Original Lease is hereby ratified and affirmed by the parties hereto. 
  
 8. The terms, covenants and conditions of this First Amendment shall be binding upon, and inure to the benefit of, each of
the parties hereto and their respective heirs, successors and assigns. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this document on the date first above written. 
  

							
	 	 	 	 	 CEDAR BROOK II CORPORATE CENTER, L.P.
 Landlord
  

				
	/s/    illegible initials	 	 	 	By:	 	/s/    illegible signature
	
	 	 	 	 	 	

	 	 	 	 	 	 	 

  

							
	 	 	 	 	 DNX TRANSGENIC SCIENCE CORP.,
 Tenant
  

				
	/s/    illegible initials 	 	 	 	By:	 	/s/    illegible signature
	
	 	 	 	 	 	

	 	 	 	 	 	 	 

  

							
	 	 	 	 	 PHOENIX INTERNATIONAL LIFE SCIENCES, INC.
 Tenant
  

				
	/s/    illegible initials	 	 	 	By:	 	/s/    illegible signature
	
	 	 	 	 	 	

	 	 	 	 	 	 	 

  

 -3-

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