CONDITIONAL LEASE TERMINATION AGREEMENT
THIS CONDITIONAL LEASE TERMINATION AGREEMENT (this “Termination Agreement”) is made as of the 1st day of
October, 2002 by and among AMB PROPERTY, L.P., a Delaware limited partnership (“Landlord”), HYSEQ, INC., a Nevada
corporation (“Tenant”), and GEORGE RATHMANN, an individual (“Guarantor”).
Landlord and Tenant are parties to that certain lease dated as of June 23, 2000 (the “Original Lease”), which
Original Lease has been previously amended by that certain First Amendment to Lease Agreement dated
December 14, 2000 (collectively, the “Lease”) relating to approximately 59,300 rentable square feet located at 225,
249 and 257 Humboldt Court, Sunnyvale, California (the “Premises”), all as more particularly described in the Lease.
Capitalized terms used herein but not otherwise defined shall have the meanings given them in the Lease.
B. George Rathmann, an individual (“Guarantor”), guarantied the obligations of Tenant under the Lease pursuant to
that certain Guaranty of Lease executed in connection with the Lease (the “Existing Guaranty”).
The Term of the Lease is scheduled to expire on July 31, 2011 (the “Scheduled Expiration Date”), and the parties
have agreed to terminate the Lease prior to the Scheduled Expiration Date upon and subject to the terms and
conditions contained in this Termination Agreement.
D. Concurrently herewith, the parties are entering into a Real Property Option and Sale Agreement and Joint Escrow
Instructions (the “Option Agreement”), providing for the grant of a six-month option (the “Option”) to purchase
the land, buildings and other improvements in which the Premises are located on the terms and conditions
contained therein (the “Property”).
NOW, THEREFORE , in consideration of the above recitals which by this reference are incorporated herein, the mutual
covenants and conditions contained herein and other valuable consideration, the rec