Document:

Exhibit 10.4

 

EXHIBIT 10.4

FIRST AMENDMENT TO MULTI-TENANT INDUSTRIAL LEASE

(TRIPLE NET)

This FIRST AMENDMENT TO MULTI-TENANT INDUSTRIAL LEASE (TRIPLE NET) (the “First
Amendment”) is entered into as of September 1, 1997, by and between AEW/LBA ACQUISITION
CO. II, LLC, a California limited liability company
(“Landlord”) and AURORA BIOSCIENCES CORPORATION, a Delaware corporation (“Tenant”).

RECITALS:

A.
Landlord and Tenant entered into that certain Multi-Tenant Industrial Lease (Triple
Net) dated April 7, 1997 (the “Lease”) for certain premises (the “Original Premise”)
located within a multi-tenant industrial building located at 11010 Torreyana Road, La
Jolla, California 92037. All terms not otherwise defined in this First Amendment shall
have the same meanings as set forth in the Lease.

B. Tenant desires to expand the Original Premises to include all of the rentable square
footage located on the second (2nd) floor of the Building (the “Expansion Premises”).

C. Landlord and Tenant desire to amend the Lease to provide for the inclusion of the
Expansion Premises into the Premises upon the terms set forth herein.

     AGREEMENT:

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1. Expansion Premises. Section 1.5 of the Summary is amended to Include the
Expansion Premises within the definition of the Premises.

2. Monthly Operating Expense Charge. Section 1.6 of the Summary is amended to
increase Tenant’s Share from 87.73% to 100%.

3.
Rent. Section 1.9 of the Summary is deleted
and the following is substituted therefor.

	 	 	 	 	 	 	 	 	 
	Year	 	Annual Base Rent	 	Monthly Basic Rent
	1*
	 	$	1,632,888.00	 	 	$	136,074.00	**
	2
	 	$	1,608,075.60	 	 	$	134,006.30	 
	3
	 	$	1,732,648.90	 	 	$	144,404.08	 
	4
	 	$	1,783,985.10	 	 	$	148,663.76	 
	5
	 	$	1,838,165.70	 		— $	153,180.48	 
	6
	 	$	1,893,787.90	 	 	$	157,815.66	 
	7
	 	$	1,949,169.70	 	 	$	162,430.81	 
	8
	 	$	2,007,764.10	 	 	$	167,313.68	 
	9
	 	$	2,067,911.70	 	 	$	172,325.98	 
	10
	 	$	2,131,383.80	 	 	$	177,613.65	 
	11
	 	$	2,194,759.20	 	 	$	182,896.60	 

 

			
	*	 	Plus any partial month at the beginning of the Term.
	 
	**	 	Notwithstanding the forgoing Monthly Basic Rent for each of the months of October,
November and December of 1997 shall be $34,074.00.

4. Right of First Refusal.
Tenant’s right of first refusal under Section 1.4 of the Lease
is deleted.

5. Verification of Rentable Square Feet of Premises. Section 1.5 of the Lease Is
deleted. The parties stipulate that, for purposes of the Lease, the Premises and the
Building contain 81,204 rentable square feet.

6. Management Fee. The Management Fee for the first two (2) years of the Term
shall be Thirty-Eight Thousand Nine Hundred Seventy-Seven and 92/100 Dollars
($38,977.92). Thereafter, the Management Fee will be equal to two percent (2%) of the
Annual Basic Rent, as otherwise set forth in Section 3.4 of the Lease.

7. Landlord’s Repair Obligations. Section 11.3 of the Lease is amended by
deleting clause (b) of the first sentence. Except as provided in Paragraph 8 below,
Landlord is no longer responsible for the repair, maintenance or replacement of the
plumbing, heating, ventilating, air conditioning, sprinkler or electrical systems within
the Building.

 

 

8. Tenant’s Repair Obligations. Tenant’s obligations under Section 11.4 are
amended to include the following items: plumbing, heating, ventillating, air conditioning
sprinkler and electrical systems within the Building (the “Basic Elements”).
Notwithstanding the foregoing, If any item of the Basic Elements cannot be repaired other
than at a cost which is in excess of sixty percent (60%) of the cost of replacing such
item of the Basic Elements (and the need for such repair is not the result of any act,
neglect, fault or omission of Tenant or Tenant’s Parties), then such item of the Basic
Elements shall be replaced by Landlord at Landlord’s initial cost, and Tenant shall pay
Landlord as Tenant’s prorata share thereof and as additional rent, each month during the
remainder of the Term on the date on which Monthly Basic Rent is due, an amount equal to
the product of multiplying the cost of such replacement by a fraction, the numerator of
which is one (1), and the denominator of which is the number of months of the useful life
of such replacement as such useful life is specified pursuant to Federal income tax
regulations or guidelines for depreciation thereof (including interest on the unamortized
balance as is then commercially reasonable In the judgment of Landlord and Tenant), with
Tenant reserving the right to prepay Its obligation at any time.

9. Brokers. The provisions of Section 8 of the Lease concerning brokers applies to
this First Amendment and the Expansion Premises.

10.
Construction Allowance. The Construction Allowance under Paragraph 6 of the
Work Letter Agreement is Increased to Three Million Four Hundred Ten Thousand, Five
Hundred Fifteen Dollars ($3,410,515.00).

11. Specific Improvements by Landlord. Landlord will, at its sole cost, perform
the following work in the Building: (i) remove the llebert air conditioning units in the
computer room and repair any associated damage to the roof resulting therefrom; (ii)
monocoat the steel beams in the Building as necessary; (iii) cause the elevators and
stairwells to comply with the Act (but without regard to any alterations to be made by
Tenant); and (iv) improve the restrooms on the second (2nd) floor of the Building in
accordance with Landlord’s standard design criteria for the Building and In accordance
with the Act.

12. Specific Tenant Improvements. Tenant shall, at its sole cost (but subject to
reimbursement from the Construction Allowance), (I) be responsible for any cosmetic
improvements to the elevator cabs, subject to Landlord’s approval of the plans therefor
and (ii) Improve the lobby area of the Building. In accordance with plans approved by
Landlord, concurrently with the construction of the Tenant Improvements.

13. Continued Effectiveness of Lease. Except as provided herein, the Lease
remains in full force and effect.

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

	 	 	 	 	 
	          “TENANT”	AURORA BIOSCIENCES CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Deborah J. Tower
 	 
	 	 	Name:  	Deborah J. Tower 	 
	 	 	Title:  	Sr. Director, Finance & Administration	 
	 
	          “LANDLORD”	AEW/LBA ACQUISITION CO. II, LLC,

a California limited liability company
 	 
	 
	 	By:  	LBA, Inc., a California corporation,
its agent 	 

	 	 	 	 	 
	 	 	 
	 	By:  	            /s/ Phil  Belling
 	 
	 	 	Name:  	Phil Belling 	 
	 	 	Title:  	Principal 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-2-Exhibit 10.5

 

EXHIBIT 10.5

SECOND AMENDMENT TO MULTI-TENANT INDUSTRIAL LEASE

     THIS SECOND AMENDMENT TO MULTI-TENANT INDUSTRIAL LEASE (this “Amendment”) is entered
into as of this 21st day of August, 2007, by and between BMR-TORREYANA LLC, a Delaware
limited liability company (“Landlord”), as successor-in-interest to AEW/LBA Acquisition Co.
II, LLC (“Original Landlord”), and VERTEX PHARMACEUTICALS (SAN DIEGO) LLC
(“Tenant”), a Delaware limited liability company, as successor-in-interest to Aurora
Biosciences Corporation (“Original Tenant”).

RECITALS

     A. WHEREAS, Original Landlord and Original Tenant entered into that certain Multi-Tenant
Industrial Lease dated as of April 7, 1997, as amended by that certain First Amendment to
Multi-Tenant Industrial Lease dated as of September 1, 1997 (collectively, and as the same may have
been further amended, supplemented or modified from time to time, the “Lease”), whereby
Tenant leases certain premises (the “Premises”) from Landlord at 11010 Torreyana Road in
San Diego, California (the “Building”);

     B. WHEREAS, Tenant desires to extend the term of the Lease; and

     C. WHEREAS, Landlord and Tenant desire to modify and amend the Lease only in the respects and
on the conditions hereinafter stated.

AGREEMENT

     NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, agree as follows:

     1. Definitions. For purposes of this Amendment, capitalized terms shall have the
meanings ascribed to them in the Lease unless otherwise defined herein. The Lease, as amended by
this Amendment, shall be referred to herein as the “Amended Lease.”

     2. Extension Term. The term of the Lease is hereby extended for five (5) years,
ending on September 30, 2013 (the “Expiration Date”). The period from October 1, 2008,
through the Expiration Date shall be referred to herein as the “Extension Term.” Nothing in
this Section 2 shall affect Tenant’s right to exercise the Extension Options under the
Lease.

     3. Basic Rent. As of the commencement of the Extension Term, Annual Basic Rent shall
equal Two Million Six Hundred Seventy-Nine Thousand Seven Hundred Thirty-Two Dollars ($2,679,732),
and Monthly Basic Rent shall equal Two Hundred Twenty-Three Thousand Three Hundred Eleven Dollars
($223,311). Annual Basic Rent and Monthly Basic Rent shall increase on each annual anniversary of
the commencement of the Extension Term by four percent (4%).

     4. Repairs and Maintenance.

 

 

          a. The following language is hereby deleted from Section 4.1 of the Lease: “but
Common Area shall include the ground floor entryway threshold, ground floor lobby, elevators and
all stairwells (except the middle stairwell).”

          b. Subsection 11.3(c) of the Lease is hereby deleted and of no further force or
effect.

     5. Taxes. Section 10.3 of the Lease is hereby deleted and of no further force
or effect.

     6. Condition of Premises. Tenant acknowledges that (a) it is in possession of and is
fully familiar with the condition of the Premises and, notwithstanding anything contained in the
Lease to the contrary, agrees to take the same in its condition “as is” as of the first day of the
Extension Term, and (b) Landlord shall have no obligation to alter, repair or otherwise prepare the
Premises for Tenant’s continued occupancy for the Extension Term or to pay for any improvements to
the Premises, except as may be expressly provided in the Lease.

     7. Broker. Tenant represents and warrants that it has not dealt with any broker or
agent in the negotiation for or the obtaining of this Amendment (“Broker”), and agrees to
indemnify, defend and hold Landlord harmless from any and all cost or liability for compensation
claimed by any such broker or agent employed or engaged by it or claiming to have been employed or
engaged by it.

     8. No Default. Tenant represents, warrants and covenants that, to the best of
Tenant’s knowledge, Landlord and Tenant are not in default of any of their respective obligations
under the Lease and no event has occurred that, with the passage of time or the giving of notice
(or both) would constitute a default by either Landlord or Tenant thereunder.

     9. Effect of Amendment. Except as modified by this Amendment, the Lease and all the
covenants, agreements, terms, provisions and conditions thereof shall remain in full force and
effect and are hereby ratified and affirmed. The covenants, agreements, terms, provisions and
conditions contained in this Amendment shall bind and inure to the benefit of the parties hereto
and their respective successors and, except as otherwise provided in the Lease, their respective
assigns. In the event of any conflict between the terms contained in this Amendment and the Lease,
the terms herein contained shall supersede and control the obligations and liabilities of the
parties. From and after the date hereof, the term “Lease” as used in the Lease shall mean the
Lease, as modified by this Amendment.

     10. Miscellaneous. This Amendment becomes effective only upon execution and delivery
hereof by Landlord and Tenant. The captions of the paragraphs and subparagraphs in this Amendment
are inserted and included solely for convenience and shall not be considered or given any effect in
construing the provisions hereof. All exhibits hereto are incorporated herein by reference.

     11. Counterparts. This Amendment may be executed in one or more counterparts that,
when taken together, shall constitute one original.

 

 

     IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands as of the date and year
first above written, and acknowledge that they possess the requisite authority to enter into this
transaction and to execute this Amendment.

LANDLORD:

	 	 	 	 	 
	BMR-TORREYANA LLC,

a Delaware limited liability company

 	 	 
	By:  	/s/ Gary A. Kreitzer
 	 	 
	 	Name:  	Gary A. Kreitzer 	 	 
	 	Title:  	Executive V.P. 	 	 
	 

TENANT:

	 	 	 	 	 
	VERTEX PHARMACEUTICALS (SAN DIEGO) LLC,

a Delaware limited liability company

 	 	 
	By:  	/s/ Kenneth S. Boger
 	 	 
	 	Name:  	Kenneth S. Boger 	 	 
	 	Title:  	Secretary

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