Document:

xoma_Ex-046

		
			Exhibit 4.6
		

		
			 DESCRIPTION OF XOMA CORPORATION CAPITAL STOCK
		

		
			The following is a description of the Common Stock,  $0.0075 par value (the “Common Stock”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Preferred Stock, $0.05 par value (the “Preferred Stock”) of XOMA Corporation (the “Company”).
		

		
			Common Stock
		

		
			General. The Company is authorized to issue up to 277,333,332 shares of Common Stock. The following description is based on (i) the Company’s Certificate of Incorporation, as currently in effect (the “Certificate of Incorporation”), (ii) the Company’s By-laws, as currently in effect (the “By-laws”), and (iii) the Delaware General Corporation Law (the “DGCL”). The following summary description of the Common Stock of the Company is qualified in its entirety by reference to the provisions of the Certificate of Incorporation and By-laws, copies of which have been filed as exhibits to the Company’s Annual Report filed herewith, and the applicable provisions of the DGCL.
		

		
			Dividend Rights.  The holders of our Common Stock have the right to receive dividends and distributions, whether payable in cash or otherwise, as may be declared from time to time by our board of directors, from legally available funds. 
		

		
			Voting Rights.  Each holder of our Common Stock is generally entitled to one vote for each share of Common Stock owned of record on all matters submitted to a vote of our stockholders. Except as otherwise required by law, holders of Common Stock (as well as holders of any Preferred Stock entitled to vote with the common stockholders) will generally vote together as a single class on all matters presented to the stockholders for their vote or approval, including the election of directors. Any matter brought before the stockholders for a vote, other than the election of directors, will generally be decided by a majority of the votes cast on the matter, unless the matter is one in which an express provision of the DGCL, the Certificate of Incorporation, the By-laws, the rules or regulations of any stock exchange applicable to us, applicable law or pursuant to any regulation applicable to us or our securities requires a different vote, in which case the express provision will govern and control the decision of the matter. Directors will be elected by a plurality of the votes cast and entitled to vote generally on the election of directors. There are no cumulative voting rights with respect to the election of directors or any other matters.
		

		
			No Preemptive or Similar Rights.  Holders of our Common Stock have no redemption rights, conversion rights or preemptive rights to purchase or subscribe for our securities.
		

		
			Right to Receive Liquidation Distributions.  In the event of our liquidation, dissolution or winding-up, holders of our Common Stock will be entitled to share equally in the assets available for distribution after payment of all creditors and the liquidation preferences of our Preferred Stock (if any).
		

		
			The rights of the holders of our Common Stock are subject o, and may be adversely affected by, the rights of holders of shares of any Preferred Stock that we may designate and issue in the future.
		

		
			Preferred Stock 
		

		
			 
		

		
			General. Under our Certificate of Incorporation, our board of directors is authorized to issue up to 1,000,000 shares of Preferred Stock, and, by resolution, to divide the Preferred Stock into series and, with respect to each series, to determine the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions thereof, including the dividend rights, conversion or exchange rights, voting rights, redemption rights and terms, liquidation preferences, sinking fund provisions and the number of shares constituting the series. Our board of directors can, without stockholder approval but subject to the terms of the Certificate of Incorporation and to any resolution of the stockholders approved by at least 75% of all issued shares entitled to vote in respect thereof, issue Preferred Stock with voting and other rights that could adversely affect the voting power of the holders of our Common 

		 

Stock and which could have certain anti-takeover effects. Before we may issue any series of Preferred Stock, our board of directors will be required to adopt resolutions creating and designating such series of Preferred Stock.  
		

		
			The following summary description of the Preferred Stock of the Company is qualified in its entirety by reference to the provisions of the Certificate of Incorporation, By-laws and the certificates of designation of preferences, rights and limitations of each series of the Preferred Stock, copies of which have been filed as exhibits to the Company’s Annual Report on Form 10-K, and the applicable provisions of the DGCL. As of December 31, 2019, 5,003 shares of Series X Preferred Stock and 1,252.772 shares of Series Y Preferred Stock were issued and outstanding.
		

		
			The Series X Preferred Stock. We have designated 5,003 shares of our Preferred Stock as Series X Preferred Stock. The Series X Preferred Stock ranks: 
		

		
			      senior to any class or series of our capital stock created specifically ranking by its terms junior to the Series X Preferred Stock;
		

		
			      on parity to our Common Stock;
		

		
			      on parity to any class or series of our capital stock created specifically ranking by its terms on parity with the Series X Preferred Stock; and
		

		
			      junior to any class or series of our capital stock created specifically ranking by its terms senior to the Series X Preferred Stock;
		

		
			in each case, as to distributions of assets upon our liquidation, dissolution or winding up whether voluntarily or involuntarily. 
		

		
			Dividends. Holders of Series X Preferred Stock are entitled to receive dividends on shares of Series X Preferred Stock equal (on an as-converted basis) to and in the same form as dividends actually paid on our Common Stock or other junior securities. 
		

		
			Liquidation Preference. In the event of our liquidation, dissolution, or winding up, holders of our Series X Preferred Stock will participate pari passu (on an as-converted basis, without regard to any blocker provisions) with any distribution of proceeds to holders of our Common Stock.  
		

		
			Redemption. We are not obligated to redeem or repurchase any shares of Series X Preferred Stock. Shares of Series X Preferred Stock are not otherwise entitled to any redemption rights or mandatory sinking fund or analogous fund provisions. 
		

		
			Conversion. The Series X Preferred Stock is convertible at the option of the holders thereof at any time after issuance into the number of registered shares of Common Stock determined by dividing the aggregate stated value of the Series X Preferred Stock being converted by the conversion price then in effect. The initial conversion price is $4.03 and is subject to adjustment as described below. No holder may request a conversion of its Series X Preferred Stock to the extent such conversion would result in the holder and its affiliates beneficially owning more than a pre-set conversion blocker threshold, which will initially be set at 19.99% of our Common Stock then outstanding (the “Beneficial Ownership Limitation”). The amount of beneficial ownership of a holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations of that section.
		

		
			Conversion Price Adjustment—Stock Dividends and Stock Splits. If we pay a stock dividend or otherwise make a distribution payable in Common Stock on our Common Stock or any Common Stock equivalents, subdivide or combine our outstanding Common Stock, or reclassify our Common Stock in such a way that we issue additional shares of our capital stock, the conversion price will be adjusted by multiplying the then-existing conversion price by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately before the distribution, dividend, adjustment or recapitalization and the denominator of which is the number of shares of Common Stock outstanding immediately after such action. 
		

		
			Fundamental Transaction. If we effect a “fundamental transaction” (as defined below), then upon any future conversion of the Series X Preferred Stock, the holders will have the right to receive, for each share of Common Stock 

		 

they would have received upon such conversion, the same kind and amount of securities, cash or property as such holder would have been entitled to receive in the fundamental transaction had it been the holder of Common Stock immediately prior to the fundamental transaction. The term “fundamental transaction” means any of the following: 
		

		
			      a merger or consolidation of the Company with or into another entity or any stock sale to, or other business combination in which the Company is not the surviving entity;
		

		
			      the sale of all or substantially all of our assets in one transaction or a series of related transactions;
		

		
			      any completed tender offer or exchange offer involving holders of Common Stock in which more than 50% of the Common Stock is converted or exchanged into other securities, cash or property, regardless of who makes such offer; or
		

		
			      any reclassification of Common Stock or any compulsory share exchange by which our Common Stock is effectively converted into or exchanged for other securities, cash or property (but not a reverse stock split).
		

		
			If the holders of Common Stock are given a choice as to the securities, cash or property to be received in a fundamental transaction, the holders of Series X Preferred Stock will be given the same choice on conversion of such holders’ shares. 
		

		
			Voting Rights. The Series X Preferred Stock has no voting rights, except to the extent expressly provided in our Certificate of Incorporation or as otherwise required by law. However, so long as 2,502 shares of Series X Preferred Stock are outstanding, we may not take any of the following actions without the affirmative consent of holders of a majority of the outstanding Series X Preferred Stock:  
		

		
			      amend our Certificate of Incorporation, By-laws or other charter documents so as to materially, specifically and adversely affect the preferences, rights, privileges of the Series X Preferred Stock;
		

		
			      issue additional shares of Series X Preferred Stock or increase or decrease the number of authorized shares of Series X Preferred Stock;
		

		
			      sell, assign, monetize, pledge or otherwise divest or encumber our rights under any material license agreement, joint venture or other partnership agreement to which we are a party as of the date of this offering and involving any drug or drug candidate;
		

		
			      issue or commit to issue any other equity securities, with certain exceptions;
		

		
			      issue any equity-based award or compensation to certain of our officers, unless the award has been unanimously approved by our compensation committee at a time when a designee appointed by the Series X Preferred holders is then serving on that committee; or
		

		
			      enter into any agreement or understanding to take any of the actions listed above.
		

		
			The Series Y Preferred Stock. We have designated 1,539 shares of our Preferred Stock as Series Y Preferred Stock. The Series Y Preferred Stock ranks: 
		

		
			      senior to any class or series of our capital stock created specifically ranking by its terms junior to the Series Y Preferred Stock;
		

		
			      on parity to our Common Stock and Series X Preferred Stock;
		

		
			      on parity to any class or series of our capital stock created specifically ranking by its terms on parity with the Series Y Preferred Stock; and
		

		
			      junior to any class or series of our capital stock created specifically ranking by its terms senior to the Series Y Preferred Stock;
		

		
			

		 

		

		
			in each case, as to distributions of assets upon our liquidation, dissolution or winding up whether voluntarily or involuntarily. 
		

		
			Dividends. Holders of Series Y Preferred Stock are entitled to receive dividends on shares of Series Y Preferred Stock equal (on an as if converted to Common Stock basis) to and in the same form as dividends actually paid on our Common Stock or other junior securities. 
		

		
			Liquidation Preference. In the event of our liquidation, dissolution, or winding up, holders of our Series Y Preferred Stock will participate pari passu (on an as-converted basis, without regard to any blocker provisions) with any distribution of proceeds to holders of our Common Stock. 
		

		
			Redemption. We are not obligated to redeem or repurchase any shares of Series Y Preferred Stock. Shares of Series Y Preferred Stock are not otherwise entitled to any redemption rights or mandatory sinking fund or analogous fund provisions. 
		

		
			Conversion. The Series Y Preferred Stock is convertible at the option of the holders thereof at any time after issuance into the number of registered shares of Common Stock determined by dividing the aggregate stated value of the Series Y Preferred Stock being converted by the conversion price then in effect. The initial conversion price is $13.00 and is subject to adjustment as described below. No holder may request a conversion of its Series Y Preferred Stock to the extent such conversion would result in the holder and its affiliates beneficially owning more than a pre-set conversion blocker threshold, which will initially be set at 19.99% of our Common Stock then outstanding (the “Beneficial Ownership Limitation”). The amount of beneficial ownership of a holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations of that section.
		

		
			Conversion Price Adjustment—Stock Dividends and Stock Splits. If we pay a stock dividend or otherwise make a distribution payable in Common Stock on our Common Stock or any Common Stock equivalents, subdivide or combine our outstanding Common Stock, or reclassify our Common Stock in such a way that we issue additional shares of our capital stock, the conversion price will be adjusted by multiplying the then-existing conversion price by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately before the distribution, dividend, adjustment or recapitalization and the denominator of which is the number of shares of Common Stock outstanding immediately after such action. 
		

		
			Fundamental Transaction. If we effect a “fundamental transaction” (as defined below), then upon any future conversion of the Series Y Preferred Stock, the holders will have the right to receive, for each share of Common Stock they would have received upon such conversion, the same kind and amount of securities, cash or property as such holder would have been entitled to receive in the fundamental transaction had it been the holder of Common Stock immediately prior to the fundamental transaction. The term “fundamental transaction” means any of the following: 
		

		
			      a merger or consolidation of the Company with or into another entity or any stock sale to, or other business combination in which the Company is not the surviving entity;
		

		
			      the sale of all or substantially all of our assets in one transaction or a series of related transactions;
		

		
			      any completed tender offer or exchange offer involving holders of Common Stock in which more than 50% of the Common Stock is converted or exchanged into other securities, cash or property, regardless of who makes such offer; or
		

		
			      any reclassification of Common Stock or any compulsory share exchange by which our Common Stock is effectively converted into or exchanged for other securities, cash or property (but not a reverse stock split).
		

		
			If the holders of Common Stock are given a choice as to the securities, cash or property to be received in a fundamental transaction, the holders of Series Y Preferred Stock will be given the same choice on conversion of such holders’ shares. 
		

		
			Voting Rights. The Series Y Preferred Stock has no voting rights, except to the extent expressly provided in our Certificate of Incorporation or as otherwise required by law. However, so long as 770 shares of Series Y Preferred 

		 

Stock are outstanding, we may not take any of the following actions without the affirmative consent of holders of a majority of the outstanding Series Y Preferred Stock: 
		

		
			      amend our Certificate of Incorporation, By-laws or other charter documents so as to materially, specifically and adversely affect the preferences, rights, privileges of the Series Y Preferred Stock;
		

		
			      issue additional shares of Series Y Preferred Stock or increase or decrease the number of authorized shares of Series Y Preferred Stock;
		

		
			Anti-takeover Effects of Provisions of our Certificate of Incorporation and By-laws and Delaware Law
		

		
			Certificate of Incorporation and By-laws Provisions.   Our certificate of incorporation authorizes our board of directors to issue up to 1,000,000 shares of Preferred Stock without stockholder approval and to set the rights, preferences and other designations, including voting rights, of those shares as the board of directors may determine. In addition, our bylaws require certain procedures to be followed and time periods to be met for any stockholder to propose matters to be considered at annual meetings of stockholders, including nominating directors for election at those meetings. Our bylaws also provide that our board of directors is able to elect a director to fill a vacancy created by the expansion of the board of directors or due to the resignation or departure of an existing board member. Provisions of Delaware law and our certificate of incorporation and bylaws could make the acquisition of our company through a tender offer, a proxy contest or other means more difficult and could make the removal of incumbent officers and directors more difficult.  We expect these provisions to discourage coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of our company to first negotiate with our board of directors. We believe that the benefits provided by our ability to negotiate with the proponent of an unfriendly or unsolicited proposal outweigh the disadvantages of discouraging these proposals. We believe the negotiation of an unfriendly or unsolicited proposal could result in an improvement of its terms.
		

		
			Delaware Law.  We are subject to Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder, unless:
		

		
			      prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
		

		
			      upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding (a) shares owned by persons who are directors and also officers, and (b) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
		

		
			      on or subsequent to the date of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66% of the outstanding voting stock which is not owned by the interested stockholder.
		

		
			Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, beneficially owns, or is an affiliate of the corporation and within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s outstanding voting securities. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance.xoma_Ex-1060

		
			Exhibit 10.60
		

		
			LEASE TERMINATION AGREEMENT
		

		
			THIS LEASE TERMINATION AGREEMENT (this “Termination Agreement”) is made as of December 17, 2019 (the “Effective Date”), by and between 7TH STREET PROPERTY GENERAL PARTNERSHIP, a California general partnership (“Landlord”) and XOMA CORPORATION, a Delaware corporation (“Tenant”).
		

		
			RECITALS:
		

		
			A.Landlord and Tenant are parties to that certain lease dated as of February 13, 2013 (the “Original Lease”), which Original Lease has been amended by that certain First Amendment to Lease dated February 22, 2013, and that certain Second Amendment to Lease dated November 18, 2014 (collectively, the “Lease”) relating to approximately 43,759 rentable square feet (the “Premises”) comprising the entire building located at 2910 Seventh Street, Berkeley, California (the “Building”), all as more particularly described in the Lease. The capitalized terms used in this Termination Agreement shall have the same definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Termination Agreement.
		

		
			B.Tenant, as sublandlord, and Pivot Bio, Inc., a Delaware corporation, as subtenant (the “Subtenant”), are parties to that certain Sublease Agreement dated September 28, 2018 (the “Sublease”), pertaining to approximately 21,314 rentable square feet, described as a portion of the ground floor of the Premises. Landlord consented to the Sublease by that certain Consent to Sublease dated October 24, 2018 (the “Consent”). The Sublease by its terms is scheduled to expire on May 31, 2021.
		

		
			C.The Term is scheduled to expire on May 31, 2021 (the “Stated Expiration Date”), and Tenant desires to terminate the Lease prior to the Stated Expiration Date. Landlord has agreed to such termination on the terms and conditions contained in this Termination Agreement.
		

		
			NOW, THEREFORE, in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:
		

			
	
			
				 1.
			

			
	
			
			Effective as of the Effective Date (the “Early Termination Date”) and subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, including, without limitation, payment of the Termination Fee described in Section 9 below, the Lease is terminated and the Term of the Lease shall expire with the same force and effect as if the Term was, by the provisions thereof, fixed to expire on the Early Termination Date, provided, Tenant’s obligation to pay Monthly Base Rent and Rent Adjustments under the Lease shall be terminated effective as of September 15, 2019 (the “Rent Termination Date”). Subject to the terms and conditions of Section 5 below, effective as of the Early Termination Date, that certain letter agreement dated July 27, 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	2016, between Wareham Property Group (on behalf of Landlord) and XOMA (US) LLC (on behalf of Tenant) regarding the performance of certain preventative maintenance, repair and capital equipment replacement work at 804 Heinz Avenue and 2910 Seventh Street, Berkeley, California (the “Letter Agreement”) is also terminated and Wareham Property Group, XOMA (US) LLC, Landlord, and Tenant shall have no further rights, obligations, or liabilities under the Letter Agreement arising after the Early Termination Date.

			
	
			
				 2.
			

			
	
			
			On or about the Early Termination Date, Landlord shall tender an attornment letter, in substantially the form attached hereto as Exhibit A, to Subtenant, pursuant to the terms and conditions of the Consent, establishing a direct contract between Landlord and Subtenant on the terms and conditions of the Sublease. Following such attornment, Landlord, as landlord, and Subtenant, as tenant, may elect to modify or alter the legal relationship between Landlord and Subtenant. Except with respect to the Maintenance Claims as set forth in and limited by Section 5 below, Tenant hereby assigns the right to pursue any Claims (defined below) it may have against Subtenant arising from any acts or omissions of Subtenant under the Sublease to Landlord, and Landlord shall pursue such Claims solely and directly against Subtenant, on a nonexclusive basis, such that either Landlord or Tenant may pursue such Claims against Subtenant; provided, however, Tenant agrees that it shall make commercially reasonable efforts to assist and cooperate with Landlord in the enforcement of the terms and conditions of the Sublease and Landlord shall promptly reimburse Tenant for any reasonable, actual, out-of-pocket expenses reasonably approved by Landlord related thereto, following Tenant’s request for such reimbursement.

			
	
			
				 3.
			

			
	
			
			Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, Tenant remises, releases, quitclaims and surrenders to Landlord, its successors and assigns, the Lease and all of the estate and rights of Tenant in and to the Lease and the Premises effective as of the Early Termination Date. Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, Landlord accepts the surrender of the Lease and the Premises effective as of the Early Termination Date.

			
	
			
				 4.
			

			
	
			
			Effective as of the Early Termination Date, Tenant forever releases and discharges Landlord from (a) any and all claims, demands, damages, liabilities, losses or causes of action whatsoever arising prior to the Early Termination Date (collectively, “Claims”) that Tenant or its successors and assigns may have against Landlord arising out of or in connection with the Premises, the Lease, or the Letter Agreement, and (b) any obligations to be observed or performed by Landlord under the Lease or the Letter Agreement; provided, however, that any Claims related to Landlord’s representations, covenants and obligations under this Termination Agreement or surviving indemnification obligations under the Lease are expressly excluded from the foregoing release.

			
	
			
				 5.
			

			
	
			
			Effective as of the Early Termination Date, Landlord forever releases and discharges Tenant from (a) any Claims that Landlord or its successors and assigns may have against Tenant arising out of or in connection with the Premises, the Lease, or the Letter Agreement arising on or after the Early Termination Date, and (b) any obligations to be observed and performed by Tenant under the Lease or Letter Agreement arising on or after the Early 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	Termination Date; provided, however, that any Claims related to Tenant’s representations, covenants, and obligations under this Termination Agreement or surviving indemnification obligations under the Lease are expressly excluded from the foregoing release. With respect to any Claims related to Tenant’s maintenance, repair, and/or replacement obligations under the Lease or the Letter Agreement (“Maintenance Claims”), Landlord shall notify Tenant in writing of any such Maintenance Claim within sixty (60) days of the Early Termination Date, and if Landlord does not notify Tenant of any Maintenance Claim during such sixty (60) day period, then, notwithstanding any other provision of this Termination Agreement or the Lease to the contrary, Landlord shall have no further right to bring or make any Maintenance Claim against Tenant and all such Maintenance Claims shall thereafter be released and waived by Landlord. Except to the extent described above, the foregoing shall not amend or otherwise modify the parties’ indemnity obligations set forth in Section 11 below.

			
	
			
				 6.
			

			
	
			
			With respect to the releases set forth in Section 4 and Section 5 above, Landlord and Tenant each acknowledge that it may hereafter discover facts different from or in addition to those it now knows or believes to be true with respect to the Claims which are the subject of the releases, and each expressly agrees to assume the risk of the possible discovery of additional or different facts, and agrees that the releases shall be and remain effective in all respects, regardless of such additional or different facts.

		
			Each of Landlord and Tenant hereby expressly waives and relinquishes all rights and benefits, if any, each may have under Section 1542 of the California Civil Code with respect to the Claims which are the subject of the releases above. California Civil Code Section 1542 reads as follows:
		

		
			“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
		

		
			THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVE ALL RIGHTS THEY MAY HAVE THEREUNDER, AS WELL AS ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT PERTAINING TO THE RELEASES SET FORTH HEREIN.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
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						Landlord Initials

					
					
						 

					
					
						Tenant Initials

				

		
			 
		

			
	
			
				 7.
			

			
	
			
			Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, effective as of the Early Termination Date:

			
	
			
				 (a)
			

			
	
			
			Tenant shall completely vacate and surrender the second (2nd) floor of the Premises to Landlord in accordance with the terms of the Lease. Without limitation, Tenant shall leave the second (2nd) floor of the Premises in a broom-clean condition and 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	free of all movable furniture and equipment and shall deliver the keys to the second (2nd) floor of the Premises to Landlord or Landlord's designee.

			
	
			
				 (b)
			

			
	
			
			Tenant releases any and all claims to the Security Deposit, in the amount of $74,195.76, held by Landlord pursuant to Article 5 of the Original Lease.

			
	
			
				 (c)
			

			
	
			
			Tenant releases any and all claims to any remaining amounts of the Tenant Improvement Allowance which may be due to Tenant pursuant to Section 9.1(c) of the Original Lease.

			
	
			
				 (d)
			

			
	
			
			Tenants assigns and delivers to Landlord the security deposit or letter of credit (together with any documents and fees necessary to transfer the beneficial interest in any such letter of credit to Landlord), as applicable, held by Tenant as sublandlord pursuant to the Sublease.

			
	
			
				 (e)
			

			
	
			
			Tenant shall pay to Subtenant any allowance, improvement allowance, or other sums due to Subtenant by Tenant as sublandlord, if any, within five (5) business days of the Early Termination Date. In connection therewith, Tenant agrees to indemnify and hold Landlord and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and their respective principals and members harmless from any and all claims of Subtenant with respect to any allowance, improvement allowance, or other sums due to Subtenant by Tenant pursuant to the Sublease.

			
	
			
				 8.
			

			
	
			
			Tenant represents and warrants that (a) Tenant is the rightful owner of all of the Tenant's interest in the Lease; (b) except with respect to the Sublease, Tenant has not made any disposition, assignment, sublease, or conveyance of the Lease or Tenant's interest therein; (c) as of the Early Termination Date, Tenant has no knowledge of any fact or circumstance which would give rise to any claim, demand, obligation, liability, action or cause of action arising out of or in connection with Tenant's and/or Subtenant’s occupancy of the Premises; (d) no other person or entity has an interest in the Lease, collateral or otherwise; and (e) there are no outstanding contracts for the supply of labor or material made by Tenant, and no work has been done or is being done in, to or about the Premises, by or at the request of Tenant, which has not been fully paid for and for which appropriate waivers of mechanic's liens have not been obtained. Landlord represents and warrants to Tenant that, as of the Early Termination Date, Landlord has no knowledge of any fact or circumstance which would give rise to any claim, demand, obligation, liability, action or cause of action arising out of or in connection with Tenant's occupancy of the Premises (including related to Tenant’s repair, maintenance, and replacement obligations under the Lease or Letter Agreement). For purposes of the foregoing representation, Landlord’s knowledge shall be limited to the current actual knowledge of Chris Barlow, Lisa Vogel, Grant Gabbard and Seth Battaglia, at the time of execution of this Termination Agreement and not any constructive knowledge of said individuals or of Landlord, without any duty of investigation, it being understood and agreed that such individuals shall have no personal liability in any manner whatsoever hereunder or otherwise related to the matters contemplated hereby.

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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				 9.
			

			
	
			
			In consideration for Landlord’s agreement to enter into this Termination Agreement, Tenant shall pay to Landlord a “Termination Fee,” calculated as follows:

			
	
			
				 (a)
			

			
	
			
			The sum of One Million One Hundred Thousand Dollars ($1,100,000.00), defined herein as the “Base Fee”;

			
	
			
				 (b)
			

			
	
			
			The Base Fee shall be increased by any Sublease Payments (defined below) actually received by Tenant from Subtenant pursuant to the Sublease for that portion of the calendar year up to and including the Early Termination Date, which amount is currently estimated to be $205,147.25; and,

			
	
			
				 (c)
			

			
	
			
			The Base Fee shall be decreased by the Base Rent and Rent Adjustments paid by Tenant to Landlord during the period commencing as of the Rent Termination Date and ending on the Early Termination Date, which amount is currently estimated to be $417,342.66.

		
			The Termination Fee shall be paid by Tenant to Landlord within one (1) business day of the mutual execution and delivery of this Termination Agreement by cashier's or certified check or by wire transfer of immediately available funds to an account designated by Landlord. Within thirty (30) days of the Early Termination Date, the parties shall reconcile any difference(s) between the estimated and actual amounts set forth in this Section 9, and pay any actual amounts due as a result of such reconciliation.
		

			
	
			
				 10.
			

			
	
			
			For purposes of this Termination Agreement, any payments of Base Rent, Monthly Base Rent and funds or sums due to Tenant under the Sublease of a nature that would be conceptually characterized as Rent, Rent Adjustments, Operating Expenses or Taxes pursuant to the Master Lease shall be defined herein as “Sublease Payments.” Tenant acknowledges and agrees that there may be an outstanding balance of Sublease Payments pertaining to unpaid Rent Adjustments due and owing by Subtenant pursuant to the Sublease for that portion of the calendar year up to and including the Early Termination Date. Tenant hereby assigns to Landlord the right to collect all such Sublease Payments from Subtenant, which Landlord shall keep for its own account upon the successful collection of any such amounts and Tenant hereby releases any claim it may have to such Sublease Payments.

			
	
			
				 11.
			

			
	
			
			Except as otherwise set forth in this Termination Agreement, all of Landlord’s and Tenant’s indemnity obligations set forth in the Lease, including, without limitation, Article 17 of the Original Lease, shall survive the termination of the Lease pursuant to this Termination Agreement.

			
	
			
				 12.
			

			
	
			
			Each signatory of this Termination Agreement represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting.

			
	
			
				 13.
			

			
	
			
			Tenant hereby represents to Landlord that, except for Cushman &Wakefield of California, Inc. (“Tenant’s Broker”), Tenant has dealt with no broker, and that no broker is entitled to any commission or compensation, in connection with this Termination Agreement. Tenant shall pay the commission due to Tenant’s Broker in connection with this 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	Termination Agreement pursuant to a separate agreement with Tenant’s Broker. Tenant agrees to indemnify and hold Landlord and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Tenant in connection with this Termination Agreement.

			
	
			
				 14.
			

			
	
			
			Landlord hereby represents to Tenant that Landlord has dealt with no broker, and that no broker is entitled to any commission or compensation, in connection with this Termination Agreement. Landlord agrees to indemnify and hold Tenant and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Landlord in connection with this Termination Agreement.

			
	
			
				 15.
			

			
	
			
			This Termination Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective successors, assigns and related entities.

			
	
			
				 16.
			

			
	
			
			Tenant agrees that neither Tenant nor its agents or any other parties acting on behalf of Tenant shall disclose any matters set forth in this Termination Agreement or disseminate or distribute any information concerning the terms, details or conditions hereof to any person, firm or entity without obtaining the express written consent of Landlord except (a) as otherwise provided or required by applicable law or court order, and (b) to Tenant’s attorneys, financial advisors, and other consultants for the purpose of complying with the terms of this Termination Agreement.

			
	
			
				 17.
			

			
	
			
			Redress for any claim against Landlord under the Lease and this Termination Agreement shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building. The obligations of Landlord under the Lease and this Termination Agreement are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries, stockholders, employees, or agents of Landlord or the investment manager.

			
	
			
				 18.
			

			
	
			
			The obligations of Tenant under the Lease and this Termination Agreement are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its board of directors, officers, stockholders, employees, or agents of Tenant.

			
	
			
				 19.
			

			
	
			
			Landlord agrees that Tenant shall not be required to remove any Tenant Alterations, Leasehold Improvements, or Required Removables from the Premises in connection with Tenant’s surrender of the Premises pursuant to this Termination Agreement (including but not limited to any improvements constructed or installed by or for Subtenant). On or about the Early Termination Date, Landlord shall tender an attornment letter to Subtenant, as provided above.

			
	
			
				 20.
			

			
	
			
			The provisions of this Termination Agreement shall be construed and enforced in accordance with the laws of the State of California. Each party hereto acknowledges that: 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	(i) each party hereto is of equal bargaining strength; (ii) each such party has actively participated in the drafting, preparation, and negotiation of this Termination Agreement; (iii) each such party has had the opportunity to consult with such party's attorneys and advisors relative to entering into this Termination Agreement; and (iv) any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Termination Agreement, any portion hereof or any amendments hereto.

			
	
			
				 21.
			

			
	
			
			This Termination Agreement, including Exhibit A, contains all of the agreements of the parties hereto with respect to the matters contained herein, and no prior agreement, arrangement or understanding pertaining to any such matters shall be effective for any purpose. No alterations, modifications, or interpretations hereof shall be binding unless in writing and signed by the parties hereto.

			
	
			
				 22.
			

			
	
			
			In the event of any conflict between the terms, covenants, and conditions of this Termination Agreement and the terms, covenants, and conditions of the Consent, the terms, covenants, and conditions of this Termination Agreement shall control as between Landlord and Tenant.

			
	
			
				 23.
			

			
	
			
			Each party hereto covenants to execute, with acknowledgment, verification, or affidavit, if required, any and all documents and writings, and to perform any and all other acts, that may be necessary or desirable to implement, accomplish, and/or consummate the terms of this Termination Agreement.

			
	
			
				 24.
			

			
	
			
			Every provision of this Termination Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, then such illegality or invalidity shall not affect the validity of the remainder of this Termination Agreement.

			
	
			
				 25.
			

			
	
			
			This Termination Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same Termination Agreement. For purposes of this Termination Agreement, signatures by facsimile or electronic PDF shall be binding to the same extent as original signatures.

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			IN WITNESS WHEREOF, Landlord and Tenant have executed this Termination Agreement on the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						LANDLORD:

					
					
						 

					
					
						TENANT:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7TH STREET PROPERTY GENERAL 

					
					
						 

					
					
						XOMA CORPORATION,

				
	
					
						PARTNERSHIP,

					
					
						 

					
					
						a Delaware corporation

				
	
					
						a California general partnership

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						Wareham-NZI, LLC,

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Its:

					
					
						Managing General Partner

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Richard Robbins

					
					
						 

					
					
						By:

					
					
						/s/ Tom Burns

				
	
					
						Name:

					
					
						Richard K. Robbins

					
					
						 

					
					
						Name:

					
					
						Tom Burns

				
	
					
						Title:

					
					
						Manager

					
					
						 

					
					
						Title:

					
					
						CFO

				
	
					
						Dated:

					
					
						12/18/2019

					
					
						 

					
					
						Dated:

					
					
						12/17/2019

				

		
			 
		

		
			 
		

		
			[signatures continue on following page]
		

		
			 
		

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			AGREED AND ACKNOWLEDGED:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						XOMA (US) LLC,

					
					
						 

				
	
					
						a Delaware limited liability company

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Tom Burns

					
					
						 

				
	
					
						Name:

					
					
						Tom Burns

					
					
						 

				
	
					
						Title:

					
					
						CFO

					
					
						 

				
	
					
						Dated:

					
					
						12/17/2019

					
					
						 

				

		
			 
		

		
			AGREED AND ACKNOWLEDGED SPECIFICALLY WITH RESPECT TO THE TERMINATION OF THE LETTER AGREEMENT: 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						WAREHAM PROPERTY GROUP, INC.,

					
					
						 

				
	
					
						a California corporation

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Richard Robbins

					
					
						 

				
	
					
						Name:

					
					
						Richard K. Robbins

					
					
						 

				
	
					
						Title:

					
					
						Manager

					
					
						 

				
	
					
						Dated:

					
					
						12/18/2019

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			Exhibit A
		

		
			Form of Attornment Letter
		

		
			December ___, 2019
		

		
			Via Federal Express
		

		
			[SUBTENANT] 
[ADDRESS]
		

		
			RE:Sublease Agreement dated 
		

		
			Ladies and Gentlemen:
		

		
			Please be advised that effective as of December __, 2019, the Master Lease underlying your Sublease, by and between Landlord and Sublandlord, terminated. Pursuant to Section 8 of the Consent, Landlord has the right to require Subtenant to attorn to Landlord upon the terms and conditions of the Sublease for the remainder of the term of the Sublease. A copy of the Consent is attached hereto and incorporated herein by reference. Accordingly, please take notice that Landlord hereby exercises its option of attornment, Subtenant has agreed to attorn to Landlord as its landlord and such attornment is effective and self-operative without the execution of any further instruments, immediately upon Landlord’s exercise of such option.
		

		
			Effective as of December ___, 2019, therefore, Landlord succeeded to Sublandlord’s interest in the Sublease, and Subtenant will attorn to Landlord as sublandlord under the Sublease. The Sublease shall remain in effect as a direct sublease between Landlord and Subtenant, on all of the terms and conditions of the Sublease, including the payment of all Base Rent and Operating Expenses and Taxes and all other amounts due and owing under the Sublease, including unpaid amounts, provided that Landlord shall be deemed to be both landlord under the Master Lease and sublandlord under the Sublease.
		

		
			Please note that all rent due shall be paid directly to Landlord at the following address:
		

		
			[TO BE PROVIDED]
		

		
			Checks should be made payable to “[INSERT LANDLORD ENTITY]”.
		

		
			Landlord's address for notices under the Sublease shall be as follows:
		

		
			[INSERT ADDRESS]
		

		
			With a copy to:
		

		
			[INSERT ADDRESS]
		

		
			Please contact Ms. Lisa Vogel at (415) 457-4964 with any questions.
		

		
			 
		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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						Sincerely,

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						[LANDLORD SIGNATURE BLOCK]

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Enclosure

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						cc:

					
					
						Pamela A. Lakey, Esq.

					
					
						 

				
	
					
						 

					
					
						SSL Law Firm, LLP

					
					
						 

				

		
			 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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