Exhibit 10.4


 


[410 Elliott/First Amendment]


 





FIRST AMENDMENT TO LEASE


 


THIS FIRST AMENDMENT
TO LEASE (this "First Amendment") is made as of October 1, 2014, by and between ARE-SEATTLE NO. 10,
LLC, a Delaware limited liability company ("Landlord"), and PHASERX INC., a Delaware corporation ("Tenant").


 


RECITALS


 


A.           Landlord
and Tenant entered into that certain Lease Agreement dated as of February 9, 2010 (the "Lease". Pursuant to the
Lease, Tenant leases certain premises consisting of approximately 2,896 rentable square feet ("Premises") in a
building located at 410 Elliott, Seattle, Washington. The Premises are more particularly described in the Lease. Capitalized terms
used herein without definition shall have the meanings defined for such terms in the Lease.


 


B.            The Base
Term of the Lease expires on September 30, 2015.


 


C.           Landlord
and Tenant desire, subject to the terms and conditions set forth below, to amend the Lease to, among other things, (i) extend the
Base Term of the Lease for a period of 3 months to expire on December 31, 2015, and (ii) extend the date by which Tenant must give
Landlord written notice of its election to exercise is Extension Right.


 


NOW, THEREFORE,
in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and conditions
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant hereby agree as follows:


 


		1.	Base Term. The Base Term of the Lease is
hereby extended to expire on December 31, 2015.



 


		2.	Rent. Tenant shall pay Base Rent through
the expiration of the Base Term of the Lease (as extended pursuant to Section 1 above), at the rates in effect on September 30,
2015. Tenant shall continue to pay Tenant’s Share of Operating Expenses and all other charges as set forth in the Lease.



 


		3.	Extension Right.



 


		(a)	The first sentence of the first paragraph of Section
39(a) of the Lease is hereby deleted in its entirety and replaced with the following:



 


“So long
as Tenant exercises its Extension Right (as defined in the Other Lease) pursuant to the Other Lease, Tenant shall have 1 right
(an "Extension Right") to extend the term of this Lease for 5 years (an "Extension Term") on
the same terms and conditions as this Lease (other than with respect to Base Rent) by giving Landlord written notice of its election
to exercise the Extension Right on or before June 30, 2015.”


 


		(b)	The first sentence of the third paragraph of Section
39(a) of the Lease is hereby deleted in its entirety and replaced with the following:



 


“lf,
on or before the date which is 120 days prior to the expiration of the Base Term of this Lease, Tenant
has not agreed with Landlord's determination of the Market Rate and the rent escalations during the Extension Term after negotiating
in good faith, Tenant shall be deemed to have elected arbitration as described in Section
40(b).”


 




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[410 Elliott/First
Amendment] 


 


		4.	Brokers. Landlord and Tenant each represents
and warrants that it has not dealt with any broker, agent or other person (collectively, "Broker") in connection
with the transaction reflected in this First Amendment and that no Broker brought about this transaction. Landlord and Tenant
each hereby agrees to indemnify and hold the other harmless from and against any claims by any Broker claiming a commission or
other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.



 


		5.	Miscellaneous.



 


a.           This
First Amendment is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior
and contemporaneous oral and written agreements and discussions. This First Amendment may be amended only by an agreement in writing,
signed by the parties hereto.


 


b.           This
First Amendment is binding upon and shall inure to the benefit of the parties hereto, their respective agents, employees, representatives,
officers, directors, divisions, subsidiaries, affiliates, assigns, heirs, successors in interest and shareholders.


 


c.           Tenant
acknowledges that it has read the provisions of this First Amendment, understands them, and is bound by them. Time is of the essence
in this First Amendment.


 


d.           This
First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when
taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without
impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical
thereto except having additional signature pages executed by other parties to this First Amendment attached thereto.


 


e.           Except
as amended and/or modified by this First Amendment, the Lease is hereby ratified and confirmed and all other terms of the Lease
shall remain in full force and effect, unaltered and unchanged by this First Amendment. In the event of any conflict between the
provisions of this First Amendment and the provisions of the Lease, the provisions of this First Amendment shall prevail. Whether
or not specifically amended by this First Amendment, all of the terms and provisions of the Lease are hereby amended to the extent
necessary to give effect to the purpose and intent of this First Amendment.


 


[Signatures are on the next page]


 




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[410 Elliott/First Amendment]


 


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


 


	 	TENANT:
	 	 
	 	PHASERX INC.,
	 	a Delaware corporation
	 	 
	 	By: 	/s/ Robert W. Overell
	 	Its: 	President & CEO


 


	 	LANDLORD:
	 	 
	 	ARE-SEATTLE NO. 10, LLC, 
	 	a Delaware limited liability company
	 	 	 	 	 
	 	By:	ALEXANDRIA REAL ESTATE EQUITIES, L.P., 
	 	 	a Delaware limited partnership, 
	 	 	managing member
	 	 	 	 	 
	 	 	By:	ARE-QRS CORP., 
	 	 	 	a Maryland corporation, 
	 	 	 	general partner
	 	 	 	 	 
	 	 	 	By: 	/s/ Jackie Clem
	 	 	 	Its: 	Jackie Clem, VP Real Estate Legal Affairs


 




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