Exhibit 10.3

EXTENSION AND ADDITIONAL SPACE AGREEMENT

 

AGREEMENT MADE as of this              day of May, 2004, between HARRISON &
STAR, INC., d/b/a Hyphen, having an office c/o Omnicom Group Inc., 437 Madison
Avenue, New York, New York 10022, hereinafter referred to as “Sublessor”, and
NPS Pharmaceuticals, Inc., having offices at 420 Chipeta Way, Salt Lake City,
Utah 84108, hereinafter referred to as “Sublessee”

 

W I T N E S S E T H:

 

WHEREAS, Sublessor and Sublessee entered into a certain written sublease dated
as of November 10, 2003, wherein and whereby Sublessor leased to Sublessee, and
Sublessee hired from Sublessor, those certain premises known as the entire third
(3rd) floor, as described and as shown on the plans annexed to said sublease in
the building known as Morris Corporate Center I, 300 Interpace Parkway,
Parsippany, New Jersey (“Building”) which sublease is hereinafter referred to as
the “Sublease”; and

 

WHEREAS, Sublessor and Sublessee desire to further modify the Sublease only in
the respects hereinafter stated;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the parties hereto by these presents do covenant and
agree as follows:

 

1. The Expiration Date of the Sublease, as modified by this Agreement, shall be
deemed to be “October 30, 2007” and Sublessee shall pay Sublessor the fixed rent
of $42,146.75 for the month of October 2007, as and for the third floor portion
of the demised premises.

 

2. Effective as of August 1, 2004 (“Additional Space Commencement Date”), and
through and including the Expiration Date, there shall be added to, and included
in, the premises demised by the Sublease, the following additional space, to
wit: the entire second (2nd) floor, as shown outlined in red on Exhibit “A”
attached hereto and made a part hereof, in the Building, consisting of
approximately 26,619 rentable square feet, which measurement Sublessor and
Sublessee accept and agree to be bound (hereinafter known as the “Additional
Space”). In order to accomplish such addition and inclusion of the Additional
Space to and in the premises demised by the Sublease, Sublessor (upon all of the
conditions, covenants, provisions, terms and agreements of the Sublease, except
as otherwise specified herein), does hereby lease to Sublessee, and Sublessee
does hereby hire from Sublessor, the Additional Space for the period to commence
as of the Additional Space Commencement Date and to end on the Expiration Date,
or on such earlier date upon which said term may expire pursuant to any of the
conditions, covenants, provisions, terms, and agreements of the Sublease, as
modified by this Agreement.

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3. Effective as of the Additional Space Commencement Date, and through and
including the Expiration Date, with respect to the Additional Space only:

 

A. the annual fixed rental rate shall be at the rate of Five Hundred Eighty-
Five Thousand Six Hundred Eighteen and no/00 ($585,618.00) Dollars per annum
($22.00 per square foot) gross and inclusive of electric, ($48,801.50 per month)
from the Additional Space Commencement Date through March 15, 2006, and at the
rate of Six Hundred Thirty- Eight Thousand Eight Hundred Fifty-Six ($638,856.00)
Dollars per annum ($24.00 per square foot) gross and inclusive of electric,
($53,238.00 per month) for the period commencing March 16, 2006 through the
Expiration Date, in equal monthly installments on or before the first day of
each succeeding month, and otherwise in the manner specified in the Sublease;
and

 

B. the percentage which appears in Article 4 of the Sublease shall be deemed to
be 50% for the Additional Space (100% for the entire sublet premises).

 

C. Sublessee’s annual electrical charges of $79,857.00 ($3.00 per square foot)
are included in the fixed rent set forth in subparagraph A above. Sublessor
shall not be liable in any way to Sublessee for any failure or defect in supply
or character of electric current furnished to the demised premises. Sublessee
covenants and agrees that, at all times, its connected electrical load shall not
cause a default under the Underlying Lease. Any sums due and payable to
Sublessor under this paragraph shall be deemed to be, and collectible as,
additional rent. In no event shall the charge payable by Sublessee for
electrical charges for the Additional Space be less than $79,857.00 per annum.

 

D. An additional security deposit of $106,476.00 shall be deposited with
Sublessee.

 

E. Sublessee shall have the right to use any and/or all of the furniture set
forth on Exhibit A attached hereto during the term of this Sublease. Sublessee
will notify Sublessor within thirty (30) days of the date of this Agreement, in
accordance with Paragraph 16 of the Sublease of any items of furniture on
Exhibit A which Sublessee elects to have removed by Sublessor, at Sublessor’s
expense, which removal by Sublessor shall occur within fifteen (15) days of
Sublessor’s receipt of such notice. Sublessee’s failure to duly and timely so
notify Sublessor shall be deemed an election by Sublessee to retain all such
furniture for the duration of the Sublease. Sublessee shall keep and maintain
such furniture in good condition and permit Sublessor entry into the entire
premises (including the third floor portion) to disassemble and remove all such
furniture not more than fifteen (15) days prior to the Expiration Date.

 

2

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F. Sublessee shall be entitled to Sublessee’s proportionate share (i.e., 50% for
the Additional Space, 100% for the entire sublet premises) of Sublessor’s
reserved and unreserved parking spaces pursuant to Section 1.2 of the Underlying
Lease.

 

4. Article 34 of the Sublease shall be deemed deleted, and of no further force
and effect.

 

5. Sublessee hereby covenants and agrees the Additional Space shall be used
solely for the purposes set forth in the Sublease, and for no other purpose

 

6. Sublessee has examined and inspected the Additional Space and Sublessee
agrees to accept the Additional Space in “as is” condition (inclusive of the
items set forth on Schedule “B”), but otherwise vacant and “broom clean”.
Sublessee understands and agrees that no materials whatever are to be furnished
by Sublessor and no work whatever is to be performed by Sublessor in connection
with the Additional Space or any part thereof.

 

7. Sublessee represents to Sublessor that Cushman & Wakefield of New Jersey
Inc., CB Richard Ellis Inc. and WF Realty LLC (collectively, the “Brokers”) are
the only brokers with whom Sublessee dealt in relation to the Additional Space
and this transaction and that Sublessee has had no dealings, either direct or
indirect, with any other real estate agent or broker in connection with the
Additional Space and this transaction. Sublessee agrees to indemnify, defend and
hold Sublessor harmless from any loss, liability and expense incurred by
Sublessor as a result of any claim made against Sublessor which is based upon a
breach of said representation by Sublessee. Sublessee’s indemnification
obligation hereunder shall survive the Expiration Date or sooner termination of
this Sublease. Sublessor hereby agrees to pay the Brokers a commission pursuant
to separate agreements.

 

8. This Agreement shall become fully effective only if the written consent
hereto of Underlying Landlord is obtained. If such written consent is not
obtained within thirty (30) days of the date hereof, then, at Sublessor’s
option, this agreement (other than Paragraph 1 hereof) shall be automatically
void and of no force or effect and Sublessor shall return to Sublessee all
monies deposited by Sublessee with Sublessor, whereupon neither party shall have
any further obligation to the other under this Agreement other than Paragraph 1
hereof shall survive (however, the Sublease shall remain in full force and
effect).

 

9. Except as modified by this Agreement, the Sublease and all the terms,
covenants, conditions, provisions, and agreements of the Sublease are hereby in
all respects ratified, confirmed, and approved. Sublessee hereby affirms that on
the date hereof no breach or default by either party has occurred and that the
Sublease, and all of its terms, conditions, covenants, agreements, and
provisions, except as hereby modified, are in full force and effect with no
defenses or offsets thereto.

 

3

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10. This Agreement contains the entire understanding between the parties with
respect to the matter contained herein. No representations, warranties,
covenants or agreements have been made concerning or affecting the subject
matter of this Agreement, except as are contained herein.

 

11. This Agreement may not be changed orally, but only by an agreement in
writing signed by the party against whom enforcement of any waiver, change,
modification or discharge is sought.

 

12. This Agreement shall be binding upon, and inure to the benefit of the
parties hereto, their respective legal representatives, successors and, except
as otherwise provided in the Sublease as modified by this Agreement, their
respective assigns.

 

13. The submission of this Agreement to Sublessee shall not be construed as an
offer, nor shall Sublessee have any rights with respect thereto, unless and
until (i) Sublessor shall execute a copy of this Agreement and deliver the same
to Sublessee and (ii) the provisions of Article 8 of this Agreement are
satisfied.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this agreement, as of
the day and year first above written.

 

SUBLESSOR:

HARRISON & STAR, INC.

d/b/a Hyphen

By:  

/s/ LORI BELUSIC

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Name:   LORI BELUSIC Title:   EVP, CPO SUBLESSEE: NPS PHARMACEUTICALS, INC. By:
 

/s/ Morgan R. Brown

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Name:   Morgan R. Brown Title:   VP Finance

 

4

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Exhibit A

Second Floor Furniture

 

Hyphen Furniture Inventory      Desks

--------------------------------------------------------------------------------

   Credenza

--------------------------------------------------------------------------------

   File Cabinets

--------------------------------------------------------------------------------

   Chairs

--------------------------------------------------------------------------------

   Overhead

--------------------------------------------------------------------------------

   desk tops

--------------------------------------------------------------------------------

   tables

--------------------------------------------------------------------------------

   cube walls

--------------------------------------------------------------------------------

   overhead light

--------------------------------------------------------------------------------

   white board

--------------------------------------------------------------------------------

208

   1    1    2    2    1    0    0    0    1    0

211

   1    1    2    3    1    0    0    0    1    0

212

   1    1    2    3    1    0    0    0    1    0

213

   1    1    2    3    1    0    0    0    1    0

214

   1    1    2    3    1    0    0    0    1    0

215

   1    1    2    3    1    0    0    0    1    0

216

   1    1    2    4    0    0    0    0    0    0

218

   1    1    2    3    1    0    0    0    1    0

219

   1    1    2    2    1    0    0    0    1    0

220

   1    1    2    3    1    0    0    0    1    0

221

   1    1    2    2    1    0    0    0    1    0

222

   1    1    2    3    1    0    1    0    1    0

223

   1    1    2    3    1    0    0    0    1    0

224

   1    1    2    3    1    0    0    0    1    0

225

   1    1    2    3    1    0    0    0    1    0

226

   1    1    2    3    1    0    0    0    1    0

227

   1    1    2    3    1    0    0    0    1    0

228

   1    1    2    3    1    0    0    0    1    0

229

   1    1    2    3    1    0    0    0    1    0

230

   1    1    2    3    1    0    0    0    1    0

231

   1    1    2    3    1    0    0    0    1    0

232

   1    1    2    2    1    0    0    0    1    0

conf.1

   0    1    0    13    0    0    1    0    0    1

conf. Window

   0    0    0    9    0    0    1    0    0    1

cube breakdown

   0    0    42    21    21    63    0    147    21    0

misc.

   0    12    7    14    0    4    1    0    0    0

Reception

   0    0    0    4    0    0    2    0    0    0

 

5

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mailroom

   0    0    0    0    0    0    3    0    0    0

accounting room

   0    0    5    1    0    0    1    0    0    0

Studio

   0    0    2    3    4    6    3    6    4    0      There is 21 cubes in the
Hyphen office space. (Cube breakdown) listed above is a breakdown of those 21
cubes for each Westport (front)      Desks

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   Credenza

--------------------------------------------------------------------------------

   File Cabinets

--------------------------------------------------------------------------------

   Chairs

--------------------------------------------------------------------------------

   Overhead

--------------------------------------------------------------------------------

   desk tops

--------------------------------------------------------------------------------

   tables

--------------------------------------------------------------------------------

   cube walls

--------------------------------------------------------------------------------

   overhead light

--------------------------------------------------------------------------------

   white board

--------------------------------------------------------------------------------

240

   0    0    0    9    0    0    0    0    0    1

241

   1    0    3    3    1    2    0    0    1    0

242

   1    0    3    3    1    2    0    0    1    0

243

   1    0    3    3    1    2    0    0    0    0

244

   0    0    0    0    0    0    0    0    0    1

245

   1    0    3    3    1    2    0    0    1    0

246

   1    0    3    3    1    2    0    0    1    0

247

   1    0    3    3    1    2    0    0    1    0

248

   1    0    3    3    1    2    0    0    1    0

249

   1    0    3    3    1    2    0    0    1    0

Reception

   1    0    2    2    0    4    0    0    0    0

cube breakdown

   0    0    24    12    0    48    0    84    0    0      There is 12 cubes in
the Westport (front) office space. (Cube breakdown) listed above is a breakdown
of
those 12 cubes for each Westport (rear)           Desks

--------------------------------------------------------------------------------

   Credenza

--------------------------------------------------------------------------------

   File Cabinets

--------------------------------------------------------------------------------

   Chairs

--------------------------------------------------------------------------------

   Overhead

--------------------------------------------------------------------------------

   desk tops

--------------------------------------------------------------------------------

   tables

--------------------------------------------------------------------------------

   cube walls

--------------------------------------------------------------------------------

   overhead light

--------------------------------------------------------------------------------

   white board

--------------------------------------------------------------------------------

250

   1    1    2    0    3    59    0    10 loose    1    0

251

   0    0    0    3    2    0    0    6 loose    0    0

252

   1    1    12    0    8    0    0    0    1    0

253

   1    1    11    0    2    0    0    0    1    0

254

   0    0    0    0    10    15    0    0    0    0

255

   1    1    2    3    2    10    0    37 loose    1    0

256

   1    1    2    0    2    3    0    23 loose    1    0

257

   1    1    2    0    1    0    0    0    1    0

258

   1    1    2    0    1    38    0    33 loose    1    0

259

   1    1    2    1    2    9    0    8 loose    1    0

260

   1    1    2    5    1    8    0    0    1    0

261

   1    1    2    8    8    0    0    0    1    0

cube breakdown

   0    0    46    23    23    69    0    161    23    0

misc.

   4    14    0    35    4    15    1    31 loose    10    0      There is 23
cubes in the Westport (rear) office space. (Cube breakdown) listed above is a
breakdown of
those 23 cubes for each

 

6

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  X   X   X   1   1   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   0

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  X   X   X   1   2   0   0   0

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  X   X   X   1   2   0   0   0

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  X   X   X   1   0   0   0   0

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   0

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  X   X   X   1   2   0   0   0

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  X   X   X   1   0   0   0   1

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  X   X   X   1   2   0   0   2

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  X   X   X   1   0   0   0   0

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  X   X   X   1   2   0   0   1

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  X   X   X   1   3   0   0   0

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  XXX   X   XXX   1   5   1   0   1

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  X   X   X   1   3   0   0   1

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  X   X   X   1   3   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   3   0   0   1

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  X   X   X   1   2   0   0   0

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   0

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  XXX   XXX   XXX   1   6   2   0   0

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  X   X   X   1   2   0   0   1

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  X   X   X   1   2   0   0   0

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  X   X   X   1   2   0   0   0

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  X   X   X   1   1   0   0   0

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  X   X   X   1   2   0   0   3

XXX

 

X

  X   X   X   1   2   0   0   1

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X

  X   X   X   1   2   0   0   1

XXX

 

X

  X   X   X   1   2   0   0   1

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X

  X   X   X   1   2   0   0   0

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X

  X   X   XXX   1   5   1   0   0

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  X   X   X   1   1   0   0   0

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X

  X   X   X   1   2   0   0   1

XXX

 

X

  X   X   X   1   1   0   0   1

XXX

 

X

  X   X   X   1   1   0   0   1

 

CONFERENCE ROOMS   Other     ROOM # 301   1 Secretary’s Desk     1 Conference
Table   1 Chair     1 Credenza   4 Seating Chairs     14 Leather Chairs   2
Glass Tables     ROOM # 303   Reception Area     2 Tables   1 Reception Desk    
7 Chairs   4 Chairs     1 File Cabinet   1 Table     ROOM # 314   Seating Area
Near Room #370     1 Conference Table   4 Seating Chairs     1 Credenza   2
Tables     12 Leather Chairs