On January 21, 2021, Vaxcyte, Inc. entered into a lease agreement with ARE-San Francisco No. 63, LLC (the Landlord) for the purpose of establishing the company’s new corporate headquarters at 825 Industrial Road in San Carlos, California. Under the Lease, the company will lease 77,734 rentable square feet of the Premises. The lease term for the Premises commenced on January 22, 2021 and will expire 48 months from the first day of the first full month following the Rent Commencement Date for such space (the “Base Term”). The “Rent Commencement Date” is the earlier to occur of (i) the date that is 12 months after the Lease Commencement Date, or (ii) the date that the tenant improvements are substantially completed. Under the Lease, the base rent is abated for three full calendar months after the Rent Commencement Date (the “Abatement Period”). Following the expiration of the Abatement Period, the Company will pay a monthly base rent for the Premises at an initial monthly rate of $5.60 per rentable square foot increasing by 3% per year on each annual anniversary of the Rent Commencement Date for the term of the Lease. Furthermore, the Landlord has agreed to provide the Company with a tenant improvement allowance of up to $160.00 per rentable square foot for the Premises and an additional tenant improvement allowance of up to $50.00 per rentable square foot (the “Additional Tenant Improvement Allowance”). If the Company exercises the Additional Tenant Improvement Allowance, it will repay the amount necessary to fully amortize the portion of the Additional Tenant Improvement Allowance actually funded by the Landlord, if any, in equal monthly payments with an interest rate of 7% per year over the Base Term, which shall start to accrue on the date that the Landlord first disburses the Additional Tenant Improvement Allowance. Following the expiration of the initial term of the Lease, the Company has two options to extend the term of the Lease for a period of five years each. Throughout the term of the Lease, the Company is responsible for paying certain costs and expenses, in addition to the rent, as specified in the Lease, including maintenance costs, taxes and operating expenses. The Lease includes various covenants, indemnities, defaults, termination rights, and other provisions customary for lease transactions of this nature, including maintaining an approximately $0.9 million letter of credit to secure the performance of the Company’s obligations under the Lease.