Sample Business Contracts


California-South San Francisco-343 Oyster Point Boulevard Sublease - diaDexus Inc. and Virologic Inc.

Lease Forms

  • Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
  • When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
  • Tenants of residential property should prepare a sublease agreement if they are seeking to sublease a room or the entire apartment or house to a third party. All parties should review the original lease agreement to see if there are any restrictions on subletting or assigning the premises.
  • Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
  • When renting an office space, tenants should understand the amount of the rent and duration of the lease. Other important terms include whether the space can be subleased, which parties are responsible for maintenance, and whether any furniture and furnishings will be provided.

                                    SUBLEASE


        THIS SUBLEASE ("Sublease"), dated June 1, 2002 (the "Commencement
Date"), is entered into by and between DIADEXUS, INC., a Delaware corporation
("Sublandlord"), and VIROLOGIC, INC. a Delaware corporation ("Subtenant").

                                    RECITALS

        A. Sublandlord, as successor-in-interest to Subtenant pursuant to an
Assignment and Assumption of Lease of even date herewith, leases certain
premises (the "Premises") consisting of approximately 53,980 square feet in a
building, located at 343 Oyster Point Boulevard, South San Francisco,
California, pursuant to that certain Lease dated November 23, 1999, between
ARE-Technology Center SSF, LLC, a Delaware limited liability company,
successor-in-interest to Trammell Crow Northern California Development, Inc., as
landlord (the "Master Landlord"), and Sublandlord, as tenant, as amended by (i)
that certain First Amendment to Lease Agreement dated February ___, 2000 and
(ii) that certain Consent to Assignment and Modification of Lease of even date
herewith (collectively, the "Master Lease"). The Premises is more particularly
described in the Master Lease, a copy of which is attached hereto as Exhibit A.
Capitalized terms used but not defined herein have the same meanings as they
have in the Master Lease.

        B. Sublandlord desires to sublease to Subtenant a portion of the
Premises comprising approximately 13,630 square feet and depicted on Exhibit B
attached hereto (the "Sublease Premises"), and Subtenant desires to sublease the
Sublease Premises from Sublandlord on the terms and provisions hereof.

        NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein, Sublandlord and Subtenant covenant and agree as follows:

                                    AGREEMENT

        1. SUBLEASE PREMISES. On and subject to the terms and conditions below,
Sublandlord hereby leases to Subtenant, and Subtenant hereby leases from
Sublandlord, the Sublease Premises.

        2. TERM.

           (a) This Sublease shall commence upon the Commencement Date, provided
Sublandlord and Subtenant have theretofore obtained the Consent to Assignment
and Modification of Lease (the "Consent") signed by the Master Landlord in the
form of Exhibit C attached hereto, and shall expire on September 30, 2003,
unless sooner terminated pursuant to any provision hereof.

           (b) Subtenant shall have an option to extend the term hereof to
December 31, 2003 (i.e., for a period of three (3) months); provided that
Subtenant delivers notice of such exercise to Sublandlord on or before January
1, 2003 and provided, further, that Subtenant is not in default under this
Sublease at the time of exercise or at the commencement of the extension period.


<PAGE>

        3. POSSESSION. Subtenant acknowledges that it is in possession of the
Sublease Premises on the Commencement Date.

        4. RENT.

           (a) Commencing on the Commencement Date and continuing throughout the
term of this Sublease, Subtenant shall pay monthly rent ("Rent") to Sublandlord
in the following amounts:

               (i) Base Rent. Subtenant shall pay to Sublandlord monthly base
rent ("Base Rent") in an amount equal to a pro-rata portion of the base rent
payable by Sublandlord under the Master Lease based on the square footage of the
Sublease Premises in proportion to the square footage of the entire Premises, as
follows:

               June 2002:               $28,350.00        ($2.08/square foot)
               July 2002-June 2003:     $29,168.00        ($2.14/square foot)
               July 2003-Sept. 2003     $30,122.00        ($2.21/square foot)

If, pursuant to Section 2(b) above, the term of this Sublease is extended to
December 31, 2003, Base Rent during such extended term shall be the same as set
forth above for the months July, 2003 through September, 2003.

               (ii) Additional Rent. In addition to Base Rent, Subtenant also
shall pay to Sublandlord, (a) Subtenant's proportionate share of Tenant's
Proportionate Share of Basic Operating Costs (as such terms are defined in the
Basic Lease Information and in Section 7 of the Master Lease), (b) all other
costs payable by Sublandlord with respect to the Sublease Premises under the
Master Lease, except penalties, interest and other costs and fees arising from a
default by Sublandlord under the Master Lease, and (c) any costs and expenses
applicable to the Sublease Premises which are paid directly by Sublandlord, if
any, including, but not limited to, utilities, personal property taxes and real
property taxes (collectively, "Additional Rent"). Subtenant shall pay
Subtenant's share of Basic Operating Costs and any Rent Increase as and when
such payments are due from Sublandlord pursuant to the Master Lease, but at
least five (5) business days prior to the date Sublandlord must pay such amounts
to Master Landlord. Within ten (10) days of receipt by Sublandlord from Master
Landlord, Sublandlord shall provide to Subtenant copies of all notices relating
to Estimated Basic Operating Costs and Basic Operating Cost Adjustments
applicable to the Sublease Premises. Subtenant shall pay items of Additional
Rent other than Basic Operating costs within ten (10) days after receipt of
written demand from Sublandlord, which demand shall be accompanied by any
invoice or statement that Sublandlord received from Master Landlord relating
thereto. Promptly upon receipt from Master Landlord, Sublandlord shall provide
Subtenant with an estimate of Additional Rent for the year 2003, together with
any notices received by Sublandlord from Master Landlord with respect thereto.

               (iii) Payment of Rent. If the termination or expiration date of
this Sublease does not fall on the last day of a calendar month, Rent for such
month shall be prorated on a daily basis based upon a calendar month. Rent shall
be payable to Sublandlord in lawful money of the United States, in advance,
without prior notice, demand, or offset, at least five (5) business days prior
to the first day of each calendar month during the term hereof. All Rent shall
be paid to Sublandlord at the address specified for notices to Sublandlord in
Section 13 below.


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<PAGE>

           (b) In the event of any casualty or condemnation affecting the
Sublease Premises, Rent payable by Subtenant shall be abated hereunder, but only
to the extent that Rent under the Master Lease is abated, and Subtenant waives
any right to terminate this Sublease in connection with such casualty or
condemnation except to the extent the Master Lease is also terminated as to the
Sublease Premises or any portion thereof.

           (c) Base Rent and Additional Rent may be referred to herein
collectively as "Rent."

        5. SECURITY DEPOSIT. On or prior to the Commencement Date, Subtenant
shall deliver to Sublandlord the sum of Fifty Six Thousand Seven Hundred Dollars
and No/100 Dollars ($56, 700.00) as security for the performance of Subtenant's
obligations under this Sublease ("Security Deposit"). If Subtenant fails to pay
Rent or other charges when due under this Sublease, or fails to perform any of
its other obligations hereunder, Sublandlord may use or apply the portion of the
Security Deposit required for the payment of any Rent or other amount then due
hereunder and unpaid, for the payment of any other sum for which Sublandlord may
become obligated by reason of Subtenant's default or breach, or for any loss or
damage sustained by Sublandlord as a result of Subtenant's default or breach. If
Sublandlord so uses any portion of the Security Deposit, Subtenant shall restore
the Security Deposit to the full amount originally deposited within ten (10)
days after receipt of Sublandlord's written demand therefor. Sublandlord shall
not be required to keep the Security Deposit separate from its general accounts,
and shall have no obligation or liability for payment of interest on the
Security Deposit. The Security Deposit, or so much thereof as had not
theretofore been applied by Sublandlord, shall be returned to Subtenant within
thirty (30) days of the expiration or earlier termination of this Sublease,
provided Subtenant has vacated the Sublease Premises in accordance with the
terms of this Sublease.

        In lieu of a cash Security Deposit, Subtenant may provide to Sublandlord
an unconditional, irrevocable letter of credit ("Letter of Credit") in the
amount set forth in this Section 5 in favor of Sublandlord and issued by a bank
located in the Bay Area and reasonably acceptable to Sublandlord ("Issuer"). The
Letter of Credit shall be in form reasonably acceptable to Sublandlord. The
Letter of Credit shall provide that draws, including partial draws, at
Sublandlord's election, will be honored upon the delivery to the Issuer of
notice signed by Sublandlord, or its authorized agent, that an event of default
has occurred under the Sublease. Any draw or partial draw of the Letter of
Credit shall not constitute a waiver by Sublandlord of its right to enforce its
other remedies hereunder, at law or in equity. If any portion of the Letter of
Credit is drawn upon, Subtenant shall, within ten (10) days after delivery of
written demand from Sublandlord, restore said Letter of Credit to its original
amount. The Letter of Credit shall be for the term of one year and automatically
shall be renewed each year for the term of sixty (60) days beyond the
termination or earlier expiration of the Sublease. The Letter of Credit will
automatically renew each year during the Sublease term unless the beneficiary
under the Letter of Credit is given at least thirty (30) days prior notice of a
non-renewal by the issuing bank, and Sublandlord shall be able to draw on the
Letter of Credit in the event of such notice.

        6. ASSIGNMENT AND SUBLETTING. Subtenant may not assign, sublet,
transfer, pledge, hypothecate or otherwise encumber the Sublease Premises, in
whole or in part, or permit the use or occupancy of the Sublease Premises by
anyone other than Subtenant, unless Subtenant has obtained Sublandlord's consent
thereto, which consent shall not be unreasonably withheld, and



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<PAGE>

the consent of Master Landlord in accordance with the terms of the Master Lease;
provided, however, that no such consent shall be required upon Subtenant's
assignment or subletting of the Sublease Premises to a Permitted Assignee (as
such term is defined in Section 21 of the Master Lease). Regardless of
Sublandlord's consent, no subletting or assignment shall release Subtenant of
its obligations hereunder. Any rent or other consideration payable to Subtenant
pursuant to any sublease or assignment permitted by this paragraph which is in
excess of the Rent payable by Subtenant to Sublandlord pursuant hereto ("Bonus
Rent") shall be paid to Sublandlord. In calculating Bonus Rent, Subtenant may
first deduct from the rent or other consideration received (a) the amortization
of a reasonable brokerage commission, and (b) the amortization of the cost of
tenant improvements, if any, paid for by Subtenant in connection with the
assignment or subletting.

        7. CONDITION OF SUBLEASE PREMISES. Subtenant has used due diligence in
inspecting the Sublease Premises and is satisfied with the condition of the
Sublease Premises and the property, including the environmental condition
thereof. Subtenant agrees to accept the Sublease Premises in "as-is" condition
and with all faults without any representation or warranty of any kind or nature
whatsoever, and without any obligation on the part of Sublandlord to modify,
improve or otherwise prepare the Sublease Premises for Subtenant's occupancy.

        8. USE. Subtenant may use the Sublease Premises only for the purposes
allowed in the Master Lease and for no other purpose. Subtenant shall promptly
comply with all applicable statutes, ordinances, rules, regulations, orders, and
restrictions of record in effect during the term of this Sublease governing,
affecting and regulating the Sublease Premises, including but not limited to the
use thereof. Subtenant shall not use or permit the use of the Sublease Premises
in a manner that will create waste or a nuisance, interfere with or disturb
other tenants in the Building or violate the provisions of the Master Lease.

        9. PARKING. Subtenant shall have a proportional interest in such parking
rights as Sublandlord has in connection with the Sublease Premises pursuant to
the Master Lease.

        10. INCORPORATION OF SUBLEASE.

            (a) All of the terms and provisions of the Master Lease, except as
provided in subsection (b) below, are incorporated into and made a part of this
Sublease and the rights and obligations of the parties under the Master Lease
are hereby imposed upon the parties hereto with respect to the Sublease
Premises, Sublandlord being substituted for the "Landlord" in the Master Lease,
and Subtenant being substituted for the "Tenant" in the Master Lease. It is
further understood that where reference is made in the Master Lease to the
"Premises," the same shall mean the Sublease Premises as defined herein; where
reference is made to the "Term Commencement Date," the same shall mean the
Commencement Date as defined herein; and where reference is made to the "Lease,"
the same shall mean this Sublease. Notwithstanding the foregoing, the term
"Landlord" in the following sections of the Master Lease (i) shall mean Master
Landlord, not Sublandlord: 8.A., 10, 24, 28, 36.J, 37.F and (ii) shall mean both
Master Landlord and Sublandlord: 18.

            (b) The following paragraphs of the Master Lease are not
incorporated herein: Basic Lease Information (except definitions that are
applicable to and appropriate in the context



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<PAGE>

of this Sublease), 1, 2, 3, 6, 19, 20, 21.B., 31, 35, 37.C, D, E, G and H,
Exhibit A-2, Exhibit B-1, Exhibit B-3, Exhibit C, Exhibit F, and Exhibit G.

           (c) Subtenant hereby assumes and agrees to perform for Sublandlord's
benefit, during the term of this Sublease, all of Sublandlord's obligations with
respect to the Sublease Premises under the Master Lease, except as otherwise
provided herein. Subtenant shall not commit or permit to be committed any act or
omission which violates any term or condition of the Master Lease. Except as
otherwise provided herein, this Sublease shall be subject and subordinate to all
of the terms of the Master Lease.

           (d) Except as expressly set forth herein, Sublandlord hereby grants
to Subtenant all of the rights, privileges and benefits granted to or conferred
upon Sublandlord as tenant under the Master Lease, provided that Subtenant's
exercise of such rights, privileges and benefits do not result in or cause
Sublandlord to default under the Master Lease.

        11. INSURANCE. Subtenant shall be responsible for compliance with the
insurance provisions of the Master Lease. Such insurance shall insure the
performance by Subtenant of its indemnification obligations hereunder and shall
name Master Landlord and Sublandlord as additional insureds. All insurance
required under this Sublease shall contain an endorsement requiring thirty (30)
days written notice from the insurance company to Subtenant and Sublandlord
before cancellation or change in the coverage, insureds or amount of any policy.
Subtenant shall provide Sublandlord with certificates of insurance evidencing
such coverage prior to the commencement of this Sublease.

        12. DEFAULT. In addition to defaults contained in the Master Lease,
failure of Subtenant to make any payment of Rent when due hereunder shall
constitute an event of default hereunder. If Subtenant's default causes
Sublandlord to default under the Master Lease, Subtenant shall defend, indemnify
and hold Sublandlord harmless from all damages, costs (including reasonable
attorneys' fees), liability, expenses or claims relating to such default.

        13. NOTICES. The addresses specified in the Master Lease for receipt of
notices to each of the parties are deleted and replaced with the following:

                    TO SUBLANDLORD AT:       diaDexus, Inc.
                                             343 Oyster Point Boulevard
                                             South San Francisco, CA  94080
                                             Attn:  Sharon Tetlow

                    TO SUBTENANT AT:         Virologic, Inc.
                                             345 Oyster Point Boulevard
                                             South San Francisco, CA  94080
                                             Attn:  Karen Wilson/Kathy Hibbs

All notices hereunder shall be in writing and shall be sent by (a) messenger or
hand delivery; (b) reputable overnight air courier service; or (c) certified or
registered U.S. Mail, postage prepaid, return receipt requested. Notice shall be
deemed given on the earlier of the date delivered or refusal of a party to
accept delivery thereof. Each party immediately shall provide the other with



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<PAGE>

a copy of any notice of default given to or received from Master Landlord with
respect to this Sublease or the Sublease Premises.

        14. SUBLANDLORD'S OBLIGATIONS.

            (a) To the extent that the provision of any services or the
performance of any maintenance or any other act respecting the Sublease Premises
or the building in which the Sublease Premises is located (the "Building"),
including, without limitation, the performance and completion of Landlord's Work
(as defined in the Master Lease), is the responsibility of Master Landlord
(collectively "Master Landlord Obligations"), upon Subtenant's written request,
Sublandlord shall make reasonable efforts to cause Master Landlord to perform
such Master Landlord Obligations, including the commencement of appropriate
legal proceedings; provided, however, that, except to the extent resulting from
Sublandlord's breach of or default under the Master Lease which is not the
result of Subtenant's breach or default hereunder, in no event shall Sublandlord
be liable to Subtenant for any liability, loss or damage whatsoever in the event
that Master Landlord should fail to perform the same, nor shall Subtenant be
entitled to withhold the payment of Rent or to terminate this Sublease, except
to the extent Sublandlord has such a termination right under the Master Lease.
If Sublandlord is unsuccessful in obtaining the performance by Master Landlord
of the Master Landlord Obligations in accordance with the immediately preceding
sentence, then Subtenant shall have the right, upon prior written notice to
Sublandlord, to exercise in its own name all of the rights available to
Sublandlord under the Master Lease to enforce performance on the part of Master
Landlord. It is expressly understood that the services and repairs which are
incorporated herein by reference, including but not limited to the maintenance
of exterior walls, structural portions of the roof, foundations, walls and
floors, will in fact be furnished by Master Landlord and not by Sublandlord,
except to the extent otherwise provided in the Master Lease. In addition,
Sublandlord shall not be liable for any maintenance, restoration (following
casualty or destruction) or repairs in or to the Building or Sublease Premises,
other than its obligation hereunder to use reasonable efforts to cause Master
Landlord to perform its obligations under the Master Lease. With respect to any
maintenance or repair to be performed by Master Landlord respecting the Sublease
Premises, the parties expressly agree that Subtenant shall have the right to
contact Master Landlord directly to cause it to so perform.

            (b) So long as Subtenant complies with its obligations under this
Sublease: (i) Sublandlord shall not agree to any amendment of the Master Lease
which materially affects Subtenant's rights under this Sublease; (ii)
Sublandlord shall not, without Subtenant's written consent, exercise any right
to terminate the Master Lease with respect to any period during the Sublease
term, other than on account of a default by Master Landlord under the Master
Lease, casualty or condemnation; and (iii) Sublandlord shall perform all of its
obligations under the Master Lease not assumed by Subtenant hereunder,
including, without limitation, the prompt payment to Master Landlord of all sums
paid by Subtenant to Sublandlord hereunder.

            (c) Sublandlord represents to Subtenant that (i) the Master Lease is
in full force and effect, (ii) Sublandlord is not in default under the Master
Lease with respect to any obligation arising after the Commencement Date and, to
Sublandlord's knowledge, Master Landlord is not in default thereunder, (iii) the
Master Lease attached hereto is a full and complete copy of the Master Lease,
and (iv) as of the Commencement Date, Sublandlord's leasehold estate is not
encumbered by any deed of trust or mortgage financing.



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<PAGE>

            (d) Subtenant represents to Sublandlord that, immediately prior to
the Commencement Date, (i) the Master Lease was in full force and effect, (ii)
Subtenant was not in default under the Master Lease with respect to any
obligation arising before the Commencement Date and, to Subtenant's knowledge,
Master Landlord was not in default thereunder, (iii) the Master Lease attached
hereto is a full and complete copy of the Master Lease, and (iv) Subtenant's
leasehold estate under the Master Lease was not encumbered by any deed of trust
or mortgage financing.

            (e) Except as otherwise provided herein, Sublandlord shall have no
other obligations to Subtenant with respect to the Sublease Premises or the
performance of the Master Landlord Obligations.

        15. EARLY TERMINATION OF SUBLEASE. If, without the fault of Sublandlord,
the Master Lease should terminate prior to the expiration of this Sublease,
Sublandlord shall have no liability to Subtenant on account of such termination.
Subject to Section 14(b) above, to the extent that the Master Lease grants
Sublandlord any discretionary right to terminate the Master Lease, whether due
to casualty, condemnation, or otherwise, Sublandlord shall be entitled to
exercise or not exercise such right in its complete and absolute discretion.

        16. CONSENT OF MASTER LANDLORD AND SUBLANDLORD. If Subtenant desires to
take any action which requires the consent or approval of Sublandlord pursuant
to the terms of this Sublease, prior to taking such action, including, without
limitation, making any alterations, then, notwithstanding anything to the
contrary herein, (a) Sublandlord shall have the same rights of approval or
disapproval as Master Landlord has under the Master Lease, and (b) Subtenant
shall not take any such action until it obtains the consent of Sublandlord and
Master Landlord, as may be required under this Sublease or the Master Lease.
This Sublease shall not be effective unless and until the Consent shall have
been obtained. Each of Sublandlord and Subtenant represents and warrants to the
other that it has obtained all necessary corporate approvals for the execution
and delivery of this Sublease.

        17. INDEMNITY. Subtenant shall indemnify, defend, protect, and hold
Sublandlord and Master Landlord harmless from and against all actions, claims,
demands, costs, liabilities, losses, reasonable attorneys' fees, damages,
penalties, and expenses (collectively "Claims") which may be brought or made
against Sublandlord or which Sublandlord may pay or incur to the extent caused
by (i) a breach of this Sublease by Subtenant, (ii) any violation of law by
Subtenant or its employees, agents, contractors or invitees (collectively,
"Agents") relating to the use or occupancy of the Sublease Premises, (iii) any
act or omission by Subtenant or its Agents resulting in contamination of any
part or all of the Sublease Premises or the Building by Hazardous Materials or
(iv) the negligence or willful misconduct of Subtenant or its Agents.
Sublandlord shall indemnify and hold Subtenant harmless from and against any and
all loss, liability or expense, including reasonable attorneys' fees, incurred
or suffered by Subtenant on account of (i) the Sublandlord's material breach of
this Sublease, (ii) a default by Sublandlord under the Master Lease to the
extent not caused by Subtenant or (iii) Sublandlord's gross negligence of
willful misconduct with respect to the Sublease Premises or this Sublease.

        18. BROKERS. Each party hereto represents and warrants that it has dealt
with no brokers in connection with this Sublease and the transactions
contemplated herein, except Mark Pearson of CRESA Partners ("Broker"). All
Broker fees and commissions shall be paid by



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<PAGE>

Subtenant in accordance with the terms of a separate agreement between Subtenant
and Broker. Each party shall indemnify, protect, defend and hold the other party
harmless from all costs and expenses (including reasonable attorneys' fees)
arising from or relating to a breach of the foregoing representation and
warranty.

        19. RIGHT OF FIRST OFFER.

            (a) So long as Virologic, Inc. (or a Permitted Assignee) is the
Subtenant hereunder and occupies the entirety of the Sublease Premises, and
subject to the conditions set forth in this Section 19, prior to entering into a
sublease proposal with a third party for all or any portion of the Premises (the
"Offered Space") pursuant to which the third party would occupy such portion of
the Premises during the term of this Sublease, Sublandlord shall deliver to
Subtenant a written notice (the "ROF Notice") informing Subtenant of
Sublandlord's intent to sublease the Offered Space to a third party during the
term of this Sublease.

            (b) Within ten (10) days of receipt of the ROF Notice, Subtenant
shall notify Sublandlord in writing of Subtenant's election to sublease the
Offered Space (the "Acceptance Notice"). Failure of Subtenant to timely deliver
the Acceptance Notice shall be deemed an election by Subtenant not to sublease
the Offered Space, and Subtenant shall have no further rights to sublease any
portion of the Offered Space thereafter. Subtenant's right of first offer set
forth in this Section 19 is a one-time right.

            (c) Immediately following receipt of the Acceptance Notice,
Sublandlord and Subtenant shall negotiate in good faith the terms of an
amendment to this Sublease to incorporate the Offered Space. The parties shall
use best efforts to finalize and execute such sublease within ten (10) days of
Sublandlord's receipt of the Acceptance Notice. The amendment shall (i) add the
Offered Space to the Sublease Space, (ii) set forth the economic terms
applicable to the Offered Space, and (iii) provide that the term of the Offered
Space is coterminous with the Sublease Premises. Base Rent for the Offered Space
shall be the "Fair Market Rent" for the Offered Space as agreed to by the
parties. "Fair Market Rent" shall mean the then current market rent for
comparable facilities in the proximate South San Francisco market area. The
definition of comparable facilities shall incorporate the parking amenities of
the Premises and its use as an office/laboratory space, and the Building's
location, age, quality, amenities, identity, exterior appearance, interior
improvements, and type of construction. If the parties are unable to agree on
Fair Market Rent within thirty (30) days of Sublandlord's receipt of the
Acceptance Notice, then Fair Market Rent shall be determined in accordance with
subsection (e) below. In no event, however, shall Base Rent for the Offered
Space be less than the then current Base Rent for the Sublease Premises.

            (d) Anything herein to the contrary notwithstanding, if Subtenant is
in default under any of the terms, covenants or conditions of this Sublease,
either at the time Subtenant exercises the right of first offer or on the
commencement date of sublease applicable to the Offered Space, Sublandlord shall
have, in addition to all of Sublandlord's other rights and remedies provided in
this Sublease, the right to terminate such right of first offer upon notice to
Subtenant.

            (e) If Sublandlord and Subtenant are unable to agree on Fair Market
Rent pursuant to subsection 19(c) above, then the parties shall submit the
matter to arbitration. The



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arbitration shall be concluded within ninety (90) days after the date of
Subtenant's Acceptance Notice. To the extent that arbitration has not been
completed prior to the expiration of the original Sublease term, Subtenant shall
pay Base Rent at the rate applicable during the last month of the original
Sublease term, with an adjustment to be made once Fair Market Rent is ultimately
determined by arbitration. Within ten (10) days of the expiration of the 30-day
period described in subsection 19(c) above, each party shall choose an Appraiser
and shall send written notice to the other party specifying therein the identity
of the Appraiser. For purposes hereof, "Appraiser" means a real estate broker or
MAI designated appraiser, in either case with not less than five (5) years of
full time commercial appraisal or brokerage experience in the sub-market area in
which the Offered Space is located and with no prior business dealings with the
party appointing such Appraiser. If either party fails to timely appoint an
Appraiser, the sole Appraiser appointed shall determine the Base Rent to be
charged during the new sublease term, based on the criteria described above. If
two Appraisers are appointed, they shall immediately meet and attempt to agree
upon such Base Rent. If they are unable to do so within fifteen (15) days after
their first meeting, they shall jointly appoint a third Appraiser and the third
Appraiser shall determine Fair Market Rent for the applicable extension period
within ten (10) days of his/her appointment. If the two Appraisers are unable to
agree upon such third Appraiser, either party may petition the Presiding Judge
of the Superior Court of the City and County where the Sublease Premises are
located to appoint such third Appraiser. The determination of Base Rent as
provided herein shall be binding upon the parties hereto. Promptly upon such
determination, the parties shall execute a sublease specifying the Base Rent
payable during the sublease term.

        20. SURRENDER OF SUBLEASE PREMISES. Upon the expiration or earlier
termination of this Sublease, Subtenant shall surrender the Sublease Premises in
the same condition as they were in on the "Term Commencement Date" of the Master
Lease, ordinary wear and tear excepted.

        21. NO THIRD PARTY RIGHTS. The benefit of the provisions of this
Sublease is expressly limited to Sublandlord and Subtenant and their respective
permitted successors and assigns. Under no circumstances will any third party be
construed to have any rights as a third party beneficiary with respect to any of
said provisions.

        22. QUIET ENJOYMENT. Subject to Section 14(b)(ii) above, so long as
Subtenant timely pays Rent and performs its obligations under this Sublease,
Sublandlord shall take no action, or fail to take any action, which would
interfere with the right of Subtenant to peaceably have, hold and enjoy the
Sublease Premises during the Sublease term.

        23. COUNTERPARTS. This Sublease may be signed in two or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one agreement.



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<PAGE>

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



SUBLANDLORD:  DIADEXUS,  INC.,                SUBTENANT:  VIROLOGIC, INC.,

a Delaware corporation                        a Delaware corporation



By: /s/ Sharon Tetlow                         By: /s/ William D. Young
   ------------------------------                 -----------------------------
Print Name: Sharon Tetlow                     Print Name: William D. Young
            ---------------------                         ---------------------
Its: CFO                                      Its: Chairman & CEO
     ----------------------------                   ---------------------------



                                       10
<PAGE>

                                    EXHIBIT A

                                  MASTER LEASE

Office Lease by and between ViroLogic and Trammell Crow Northern California
Development, Inc. dated as of November 23, 1999 - Filed as an exhibit to the
Registrant's Registration Statement on Form S-1 (No. 333-30896) or amendments
thereto and incorporated herein by reference.


<PAGE>
                                  EXHIBIT A-1


<PAGE>

<PAGE>
                                   Exhibit B

                               Sublease Premises

                                  First Floor
<PAGE>
                                   Exhibit B

                               Sublease Premises

                                   2nd Floor

<PAGE>
                                    EXHIBIT C

                               CONSENT TO SUBLEASE

                                [to be attached]




                                       13
<PAGE>

                                                                      EXHIBIT C

<PAGE>


                                  ATTACHMENT 1

                          COPY OF LEASEHOLD ASSIGNMENT

                            [See Following Page(s)]





                                       7

<PAGE>
                       ASSIGNMENT AND ASSUMPTION OF LEASE

        THIS ASSIGNMENT AND ASSUMPTION OF LEASE is made and entered into as of
June 1, 2002 (the "Effective Date"), by and between Virologic, Inc., a Delaware
corporation ("Assignor"), and diaDexus, Inc., a Delaware corporation
("Assignee").

                                    RECITALS

        A. ARE-Technology Center SSF, LLC, a Delaware limited liability company,
successor-in-interest to Trammell Crow Northern California Development, Inc., as
landlord ("Landlord"), and Assignor, as tenant, are parties to that certain
Lease (the "Original Lease") dated as of November 23, 1999, as amended by (i)
that certain First Amendment to Lease Agreement dated as of February __, 2000 by
and between Landlord and Tenant and (ii) Consent to Assignment and Modification
of Lease of even date herewith (collectively, the "Lease"), pursuant to which
Assignor leases certain premises consisting of approximately 53,980 square feet
in a building described in the Original Lease as being located at 335 Oyster
Point Boulevard, South San Francisco, California (the "Premises"), and more
particularly described in the Lease. Notwithstanding the description in the
Original Lease of the street address of the Premises as being 335 Oyster Point
Boulevard, South San Francisco, California, the actual street address of the
Premises is 343 Oyster Point Boulevard, South San Francisco, California.

        B. Effective as of the Effective Date, Assignor desires to assign,
transfer and convey all of its right, title and interest in and to, and all of
its obligations under, the Lease to Assignee, and Assignee desires to accept
such assignment and assume such obligations.

        C. On the Effective Date, Assignor will transfer its ownership interest
in all of the Movable Equipment and Trade Fixtures described in Exhibit B-3 to
the Lease (excluding items 1 through 6 described in such Exhibit B-3) (the
"Equipment"), to Assignee.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained hereinafter and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby
agree as follows:

        1. Assignment and Assumption. Effective as of the Effective Date,
Assignor hereby assigns, transfers and conveys to Assignee all of its right,
title and interest in and to, and all of its obligations under, the Lease.
Effective as of the Effective Date, Assignee hereby expressly accepts such
assignment and assumes such obligations and agrees to perform and fulfill all
obligations and duties of Assignor arising under the Lease from and after the
Effective Date.

        2. Reciprocal Indemnity.

           (a) Assignor shall defend, protect, indemnify, and hold harmless
Assignee from and against any and all loss, liability, claim, action, damages,
costs and expenses (including reasonable attorneys' fees), directly or
indirectly arising from or out of any failure by


<PAGE>

Assignor to perform Assignor's obligations, or any breach of Assignor's
obligations, under the Lease prior to the Effective Date.

           (b) Assignee shall defend, protect, indemnify, and hold harmless
Assignor from and against any and all loss, liability, claim, action, damages,
costs and expenses (including reasonable attorneys' fees), directly or
indirectly arising from or out of any failure by Assignee to perform Assignee's
obligations, or any breach of Assignee's obligations, under the Lease from and
after the Effective Date.

        3. Payment of Consideration. As consideration for Assignor's assignment
of the Lease and transfer of the Equipment to Assignee, Assignee will pay to
Assignor a total of $5,000,000.00, of which $2,229,228.00 is consideration for
the assignment of the Lease and $2,770,772.00 is consideration for the transfer
of the Equipment, in accordance with the following payment schedule:

<TABLE>
<S>                                      <C>
        Effective Date:                  $   3,000,000.00
        September 27, 2002               $   1,000,000.00
        December 28, 2002                $   1,000,000.00
</TABLE>

        4. Letter of Credit and Security Deposit. On the Effective Date,
Assignee shall (a) post a letter of credit in favor of Landlord in the amount of
$400,000.00 (the amount currently required under the Lease), which letter of
credit will comply with the requirements set forth in Section 19 of the Lease
and will be subject to reduction on the terms and conditions set forth therein
and (b) deliver to Landlord the cash security deposit in the amount of
$127,933.00 required by the Lease.



                                       2
<PAGE>


        5. Successors and Assigns. This Assignment and Assumption of Lease shall
be binding upon, and inure to the benefit of, the parties hereto and their
respective legal representatives, successors and assigns.

        6. Governing Law. This Assignment and Assumption of Lease shall be
construed and enforced in accordance with the laws of the State of California.

        IN WITNESS WHEREOF, the parties hereto have executed this Assignment and
Assumption of Lease as of the day and year first above written.



        ASSIGNOR:          VIROLOGIC, INC., A DELAWARE CORPORATION


                           By: /s/ William D. Young
                               -----------------------------------
                           Name: William D. Young
                                 ---------------------------------
                           Title: Chairman & CEO
                                  --------------------------------


       ASSIGNEE:           DIADEXUS, INC., A DELAWARE CORPORATION


                           By: /s/ Sharon Tetlow
                               -----------------------------------
                           Name: Sharon Tetlow
                                 ---------------------------------
                           Title: CFO
                                  --------------------------------




                                       3
<PAGE>


                                  ATTACHMENT 2

                              COPY OF BILL OF SALE

                            [See Following Page(s)]





                                        8
<PAGE>

                              WARRANTY BILL OF SALE


        VIROLOGIC, INC. ("SELLER"), for good and valuable consideration to it
paid by or on behalf of DIADEXUS, INC. ("PURCHASER"), does hereby grant,
bargain, sell, transfer and deliver unto Purchaser, its successors and assigns,
all of Seller's right, title to and interest in the Equipment described on
Exhibit B-3 attached hereto, excluding items 1 through 6 described in such
Exhibit B-3.

        TO HAVE AND TO HOLD the same unto Purchaser, its successors and assigns,
forever.

        Seller hereby warrants that it is the lawful owner of the Equipment
described above and has good right to sell the same and that title to all such
Equipment is on the date hereof free and clear of all claims, liens and
encumbrances of any nature and that Seller will defend such title.

        IN WITNESS WHEREOF, Seller has caused this Warranty Bill of Sale to be
executed by its duly authorized officer on the 1st day of June, 2002.




                                                VIROLOGIC, INC.


                                                By: /s/ William D. Young
                                                    ---------------------------
                                                Name: William D. Young
                                                      -------------------------
                                                Title:  Chairman & CEO
                                                        -----------------------



<PAGE>


Source: Exhibit 10.2 to Form 10-Q of Virologic Inc. (August 12, 2002).


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