Document:

Exhibit 10.14

 

SECOND
AMENDMENT

 

THIS
SECOND AMENDMENT (the “Amendment”) is made and entered into
as of the 26th day of September, 2003, by and between CA-EMERYVILLE
PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”),
and BIOMEDICINES, INC., a Delaware
corporation (“Tenant”).

 

RECITALS

 

A.            Landlord
(as successor by conversion to EOP-Emeryville Properties, L.L.C., a Delaware
limited liability company, successor in interest to Spieker Properties, L.P., a
California limited partnership) and Tenant are parties to that certain lease
dated February 21, 2001, which lease has been previously amended by
instrument dated March 22, 2001 (collectively, the “Lease”).  Pursuant to the Lease, Landlord has leased to
Tenant space currently containing approximately 11,256 rentable square feet
(the “Original Premises”) described as Suite No. 1666 on the 16th floor of
the building commonly known as Watergate Office Towers – Emeryville Tower III
located at 2000 Powell Street, Emeryville, California (the “Building”).

 

B.            Tenant
has requested that additional space containing approximately 1,384 rentable
square feet described as Suite No. 1650 on the 16th floor of the Building
shown on Exhibit A hereto
(the “Expansion Space”) be added to the Premises and that the Lease be
appropriately amended and Landlord is willing to do the same on the following
terms and conditions.

 

C.            The
Lease by its terms shall expire on February 28, 2005 (“Prior Expiration
Date”), and the parties desire to extend the Term of the Lease, all on the
following terms and conditions.

 

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

 

I.              EXPANSION.

 

Effective as of the
Expansion Effective Date (defined below), the Premises, as defined in the
Lease, is increased from 11,256 rentable square feet on the 16th floor to
12,640 rentable square feet on the 16th floor by the addition of the Expansion
Space, and from and after the Expansion Effective Date, the Original Premises
and the Expansion Space, collectively, shall be deemed the Premises, as defined
in the Lease.  The Term for the Expansion
Space shall commence on the Expansion Effective Date and end on the Extended
Expiration Date (as hereinafter defined). 
The Expansion Space is subject to all the terms and conditions of the
Lease except as expressly modified herein and except that Tenant shall not be
entitled to receive any allowances, abatements or other financial

 

1

 

concessions granted with
respect to the Original Premises unless such concessions are expressly provided
for herein with respect to the Expansion Space.

 

A.             The
Expansion Effective Date shall be the later to occur of (i) November 1,
2003 (‘Target Expansion Effective Date”), and (ii) the date upon which the
Landlord Work (as defined in the Work Letter attached as Exhibit B hereto) in the Expansion
Space has been substantially completed; provided,
however, that if Landlord shall be delayed in substantially
completing the Landlord Work in the Expansion Space as a result of the
occurrence of a Tenant Delay (defined below), then, for purposes of determining
the Expansion Effective Date, the date of substantial completion shall be
deemed to be the day that said Landlord Work would have been substantially
completed absent any such Tenant Delay(s). 
A “Tenant Delay” means any act or omission of Tenant or its agents,
employees, vendors or contractors that actually delays substantial completion
of the Landlord Work, including, without limitation, the following:

 

1.             Tenant’s
failure to furnish information or approvals within any time period specified in
the Lease or this Amendment, including the failure to prepare or approve
preliminary or final plans by any applicable due date;

 

2.             Tenant’s
selection of equipment or materials that have long lead times after first being
informed by Landlord that the selection may result in a delay;

 

3.            Changes
requested or made by Tenant to previously approved plans and specifications;

 

4.             The
performance of work in the Expansion Space by Tenant or Tenant’s contractor(s)
during the performance of the Landlord Work; or

 

5.             If
the performance of any portion of the Landlord Work depends on the prior or
simultaneous performance of work by Tenant, a delay by Tenant or Tenant’s
contractor(s) in the completion of such work.

 

The Expansion Space shall
be deemed to be substantially completed on the date that Landlord reasonably
determines that all Landlord Work has been performed (or would have been
performed absent any Tenant Delays), other than any details of construction,
mechanical adjustment or any other matter, the noncompletion of which does not
materially interfere with Tenant’s use of the Expansion Space.  The adjustment of the Expansion Effective
Date and, accordingly, the postponement of Tenant’s obligation to pay Rent on
the Expansion Space shall be Tenant’s sole remedy and shall constitute full
settlement of all claims that Tenant might otherwise have against Landlord by
reason of the Expansion Space not being ready for occupancy by Tenant on the
Target Expansion Effective Date.

 

B.            In
addition to the postponement, if any, of the Expansion Effective Date as a
result of the applicability of Paragraph I.A. of this Amendment, the Expansion
Effective Date shall be delayed to the extent that Landlord fails to deliver 

 

2

 

possession of the
Expansion Space for any other reason (other than Tenant Delays by Tenant),
including but not limited to, holding over by prior occupants.  Any such delay in the Expansion Effective
Date shall not subject Landlord to any liability for any loss or damage
resulting therefrom.  If the Expansion
Effective Date is delayed, the Extended Expiration Date (defined below) shall
not be similarly extended.

 

II.            EXTENSION.

 

The Term of the Lease is
hereby extended for a period of 36 months and shall expire on February 29,
2008 (“Extended Expiration Date”), unless sooner terminated in accordance with
the terms of the Lease.  That portion of
the Term commencing the day immediately following the Prior Expiration Date (“Extension
Date”) and ending on the Extended Expiration Date shall be referred to herein
as the “Extended Term”.

 

III.           BASE
RENT.

 

A.            Original Premises Through Day Prior To
Amended Base Rent Date.  The
Base Rent, Additional Rent and all other charges under the Lease shall be
payable as provided therein with respect to the Original Premises through and
including the day prior to the Amended Base Rent Date (as hereinafter defined).

 

B.            Original Premises From and After Amended Base
Rent Date.  Effective as of January 1,
2004 (the “Amended Base Rent Date”), the schedule of Base Rent set forth
in the Basic Lease Information of the Lease with respect to the Original
Premises for the period beginning on the Amended Base Rent Date and ending on
the Prior Expiration Date shall be deleted in its entirety and the following schedule of
Base Rent shall be substituted in its place, and the monthly installments of
Base Rent set forth in such substitute schedule shall be payable with
respect to the Original Premises beginning as of the Amended Base Rent Date and
continuing during the remainder of the original Term and the Extended Term:

 

	
  Period

  	
   

  	
  Annual Rate 

  Per Square Foot

  	
   

  	
  Annual 

  Base Rent

  	
   

  	
  Monthly 

  Base Rent

  	
   

  
	
  1/1/04 –
  2/28/05

  	
   

  	
  $

  	
  27.96

  	
   

  	
  $

  	
  314,717.76

  	
   

  	
  $

  	
  26,226.48

  	
   

  
	
  3/1/05 –
  2/28/06

  	
   

  	
  $

  	
  22.20

  	
   

  	
  $

  	
  249,883.20

  	
   

  	
  $

  	
  20,823.60

  	
   

  
	
  3/1/06 – 2/28/07

  	
   

  	
  $

  	
  22.92

  	
   

  	
  $

  	
  257,987.52

  	
   

  	
  $

  	
  21,498.96

  	
   

  
	
  3/1/07 –
  2/29/08

  	
   

  	
  $

  	
  23.52

  	
   

  	
  $

  	
  264,741.12

  	
   

  	
  $

  	
  22,061.76

  	
   

  

 

All such Base Rent shall
be payable by Tenant in accordance with the terms of the Lease.

 

C.            Expansion Space From Expansion Effective Date
Through Extended Expiration Date. 
As of the Expansion Effective Date, the schedule of Base Rent
payable with respect to the Expansion Space for the balance of the original
Term and the Extended Term is the following:

 

3

 

	
  Period

  	
   

  	
  Annual Rate 

  Per Square Foot

  	
   

  	
  Annual 

  Base Rent

  	
   

  	
  Monthly 

  Base Rent

  	
   

  
	
  11/1/03

  	
  –

  	
  2/28/05

  	
   

  	
  $

  	
  21.60

  	
   

  	
  $

  	
  29,894.40

  	
   

  	
  $

  	
  2,491.20

  	
   

  
	
  3/1/05 

  	
  –

  	
  2/28/06

  	
   

  	
  $

  	
  22.20

  	
   

  	
  $

  	
  30,724.80

  	
   

  	
  $

  	
  2,560.40

  	
   

  
	
  3/1/06 

  	
  –

  	
  2/28/07

  	
   

  	
  $

  	
  22.92

  	
   

  	
  $

  	
  31,721.28

  	
   

  	
  $

  	
  2,643.44

  	
   

  
	
  3/1/07 

  	
  –

  	
  2/29/08

  	
   

  	
  $

  	
  23.52

  	
   

  	
  $

  	
  32,551.68

  	
   

  	
  $

  	
  2,712.64

  	
   

  

 

All such Base Rent shall
be payable by Tenant in accordance with the terms of the Lease.

 

Landlord and Tenant
acknowledge that the foregoing schedule is based on the assumption that
the Expansion Effective Date is the Target Expansion Effective Date.  If the Expansion Effective Date is other than
the Target Expansion Effective Date, the schedule set forth above with
respect to the payment of any installment(s) of Base Rent for the Expansion
Space shall be appropriately adjusted on a per diem basis to reflect the actual
Expansion Effective Date, and the actual Expansion Effective Date shall be set
forth in a confirmation letter to be prepared by Landlord.  However, the effective date of any increases
or decreases in the Base Rent rate shall not be postponed as a result of an
adjustment of the Expansion Effective Date as provided above.

 

IV.           ADDITIONAL
SECURITY DEPOSIT.

 

Upon Tenant’s execution
hereof, Tenant shall pay Landlord the sum of $123,000.00 (the “Additional
Security Deposit”) which is added to and becomes part of the Security Deposit,
if any, held by Landlord as provided under Section 5 of the Lease as
security for payment of Rent and the performance of the other terms and
conditions of the Lease by Tenant.  The
Additional Security Deposit shall be in the form of an irrevocable letter of
credit in accordance with Section 5 of the Lease.  Accordingly, simultaneous with the execution
hereof, the Security Deposit is increased from $174,000.00 to $297,000.00.

 

V.            TENANT’S
PROPORTIONATE SHARE.

 

For the period commencing
with the Expansion Effective Date and ending on the Extended Expiration Date,
Tenant’s Proportionate Share for the Expansion Space is 0.3763%.

 

VI.           OPERATING
EXPENSES.

 

A.            Original Premises for the Extended Term.  For the period commencing with the Extension
Date and ending on the Extended Expiration Date, Tenant shall pay for Tenant’s
Proportionate Share of Operating Expenses applicable to the Original Premises
in accordance with the terms of the Lease, provided,
however, during such period, the Base Year for the computation of
Tenant’s Proportionate Share of Operating Expenses applicable to the Original
Premises is amended from 2001 to 2004.

 

4

 

B.            Expansion Space From Expansion Effective Date
Through Extended Expiration Date. 
For the period commencing with the Expansion Effective Date and ending
on the Extended Expiration Date, Tenant shall pay for Tenant’s Proportionate
Share of Operating Expenses applicable to the Expansion Space in accordance
with the terms of the Lease, provided,
however, during such period, the Base Year for the computation of
Tenant’s Proportionate Share of Operating Expenses applicable to the Expansion
Space is 2003.

 

VII.         IMPROVEMENTS
TO EXPANSION SPACE.

 

A.            Condition of Expansion Space.  Tenant has inspected the Expansion Space and
agrees to accept the same “as is” without any agreements, representations,
understandings or obligations on the part of Landlord to perform any
alterations, repairs or improvements, except as may be expressly provided
otherwise in this Amendment.

 

B.            Responsibility for Improvements to Expansion
Space.  Landlord shall perform
improvements to the Expansion Space in accordance with the Work Letter attached
hereto as Exhibit B.

 

VIII.        EARLY
ACCESS TO EXPANSION SPACE.

 

During any period that
Tenant shall be permitted to enter the Expansion Space prior to the Expansion
Effective Date (e.g., to perform
alterations or improvements), Tenant shall comply with all terms and provisions
of the Lease, except those provisions requiring payment of Base Rent or
Additional Rent as to the Expansion Space. 
If Tenant takes possession of the Expansion Space prior to the Expansion
Effective Date for any reason whatsoever (other than the performance of work in
the Expansion Space with Landlord’s prior approval), such possession shall be
subject to all the terms and conditions of the Lease and this Amendment, and
Tenant shall pay Base Rent and Additional Rent as applicable to the Expansion
Space to Landlord on a per diem basis for each day of occupancy prior to the
Expansion Effective Date.

 

IX.           OTHER
PERTINENT PROVISIONS.

 

Landlord and Tenant agree
that, effective as of the date of this Amendment (unless different effective
dates are specifically referenced in this Section), the Lease shall be amended
in the following additional respects:

 

A.            Landlord’s Addresses for Notices.  Effective as of the date hereof, Landlord’s “Addresses
for Notices” as set forth in the Basic Lease Information of the Lease is hereby
deleted and replaced with the following:

 

	
  “Landlord:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  CA-Emeryville
  Properties Limited

  	
   

  	
  Equity Office

  
	
  Partnership

  	
   

  	
  Two North
  Riverside Plaza

  
	
  c/o Equity
  Office Management, L.L.C.

  	
   

  	
  Suite 2100

  
	
  2200 Powell
  Street

  	
   

  	
  Chicago,
  Illinois 60606

  
	
  Suite 200

  	
   

  	
  Attn: 

  	
  San Francisco
  Regional

  
	
  Emeryville,
  California 94608

  	
   

  	
   

  	
  Counsel”

  
	
  Attn: Property
  Manager

  	
   

  	
   

  

 

5

 

B.           Parking.  Section 15 of the Lease and the “Parking
Density’ section of the Basic Lease Information of the Lease, regarding
the parking spaces which are available to Tenant’s employees and visitors,
remains unmodified hereby and, effective as of the Expansion Effective Date,
Tenant shall be entitled to the appropriate number of parking spaces, in the
proportion referenced in the aforesaid sections, in connection with the
Expansion Space.

 

C.            Deleted Section.  Effective as of the Extension Date, in
addition to the other Sections and provisions of the Lease modified herein, Section 22
(Contingency) of the Lease shall be deleted in its entirety and shall be of no
further force and effect.

 

X.            MISCELLANEOUS.

 

A.             This
Amendment and the attached exhibits, which are hereby incorporated into and
made a part of this Amendment, set forth the entire agreement between the
parties with respect to the matters set forth herein.  There have been no additional oral or written
representations or agreements.  Under no
circumstances shall Tenant be entitled to any Rent abatement, improvement
allowance, leasehold improvements, or other work to the Premises, or any
similar economic incentives that may have been provided Tenant in connection
with entering into the Lease, unless specifically set forth in this Amendment.

 

B.             Except
as herein modified or amended, the provisions, conditions and terms of the
Lease shall remain unchanged and in full force and effect.

 

C.            In
the case of any inconsistency between the provisions of the Lease and this
Amendment, the provisions of this Amendment shall govern and control.

 

D.             Submission
of this Amendment by Landlord is not an offer to enter into this Amendment but
rather is a solicitation for such an offer by Tenant.  Landlord shall not be bound by this Amendment
until Landlord has executed and delivered the same to Tenant.

 

E.             The
capitalized terms used in this Amendment 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 Amendment.

 

F.            Tenant
hereby represents to Landlord that Tenant has dealt with no broker other than
Aegis Realty in connection with this Amendment. 
Tenant agrees to indemnify and hold Landlord, its trustees, members,
principals, beneficiaries, partners, officers, directors, employees,
mortgagee(s) and agents, and the 

 

6

 

respective
principals and members of any such agents (collectively, the “Landlord Related
Parties”) harmless from all claims of any brokers other than Aegis Realty claiming
to have represented Tenant in connection with this Amendment.  Landlord hereby represents to Tenant that
Landlord has dealt with no broker in connection with this Amendment.  Landlord agrees to indemnify and hold Tenant,
its trustees, members, principals, beneficiaries, partners, officers,
directors, employees, and agents, and the respective principals and members of
any such agents (collectively, the “Tenant Related Parties”) harmless from all
claims of any brokers claiming to have represented Landlord in connection with
this Amendment.

 

Equity Office Properties
Management Corp. (“EOPMC”) is an affiliate of Landlord and represents only
Landlord in this transaction.  Any
assistance rendered by any agent or employee of EOPMC in connection with this
Amendment or any subsequent amendment or modification hereto has been or will
be made as an accommodation to Tenant solely in furtherance of consummating the
transaction on behalf of Landlord, and not as agent for Tenant.

 

G.            Each
signatory of this Amendment 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.

 

[SIGNATURES ARE ON FOLLOWING PAGE]

 

IN WITNESS WHEREOF,
Landlord and Tenant have duly executed this Amendment as of the day and year
first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CA-EMERYVILLE
  PROPERTIES LIMITED PARTNERSHIP, a Delaware limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  EOM
  GP, L.L.C., a Delaware limited liability

  company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  EQUITY
  OFFICE MANAGEMENT, L.L.C.,

  a Delaware limited liability company, its 

  non-member manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Mark
  Geisreiter

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark Geisreiter

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  
								

 

7

 

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  BIOMEDICINES,
  INC., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James Ahlers

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   James Ahlers

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

8

 

EXHIBIT
A

 

OUTLINE
AND LOCATION OF EXPANSION SPACE

 

 

 

EXHIBIT B

 

WORK
LETTER

 

This Exhibit is attached
to and made a part of the Amendment by and between CA-EMERYVILLE
PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”),
and BIOMEDICINES, INC., a Delaware
corporation (“Tenant”), for space in the Building located at 2000 Powell
Street, Emeryville, California.

 

As used in this
Work Letter, the “Premises” shall be deemed to mean the Expansion Space, as
defined in the attached Amendment.

 

1.            This
Work Letter shall set forth the obligations of Landlord and Tenant with respect
to the improvements to be performed in the Premises for Tenant’s use.  All improvements described in this Work
Letter to be constructed in and upon the Premises by Landlord are hereinafter
referred to as the “Landlord Work.”  It
is agreed that construction of the Landlord Work will be completed at Tenant’s
sole cost and expense, subject to the Allowance (as defined below).  Landlord shall enter into a direct contract
for the Landlord Work with a general contractor selected by Landlord.  In addition, Landlord shall have the right to
select and/or approve of any subcontractors used in connection with the
Landlord Work.

 

2.             Tenant
shall be solely responsible for the timely preparation and submission to
Landlord of the final architectural, electrical and mechanical construction
drawings, plans and specifications (called “Plans”) necessary to construct the
Landlord Work, which plans shall be subject to approval by Landlord and
Landlord’s architect and engineers and shall comply with their requirements to
avoid aesthetic or other conflicts with the design and function of the balance
of the Building.  Tenant shall be
responsible for all elements of the design of Tenant’s plans (including,
without limitation, compliance with law, functionality of design, the
structural integrity of the design, the configuration of the Premises and the
placement of Tenant’s furniture, appliances and equipment), and Landlord’s
approval of Tenant’s plans shall in no event relieve Tenant of the
responsibility for such design.  If
requested by Tenant, Landlord’s architect will prepare the Plans necessary for
such construction at Tenant’s cost. 
Whether or not the layout and Plans are prepared with the help (in whole
or in part) of Landlord’s architect, Tenant agrees to remain solely responsible
for the timely preparation and submission of the Plans and for all elements of
the design of such Plans and for all costs related thereto.  Tenant has assured itself by direct
communication with the architect and engineers (Landlord’s or its own, as the
case may be) that the final approved Plans can be delivered to Landlord on or
before                       ,
20       (the “Plans Due Date”), provided that Tenant promptly furnishes
complete information concerning its requirements to said architect and
engineers as and when requested by them. 
Tenant covenants and agrees to cause said final, approved Plans to be
delivered to Landlord on or before said Plans Due Date and to devote such time
as may be necessary in consultation 

 

1

 

with said
architect and engineers to enable them to complete and submit the Plans within
the required time limit.  Time is of the
essence in respect of preparation and submission of Plans by Tenant.  If the Plans are not fully completed and
approved by the Plans Due Date, Tenant shall be responsible for one day of
Tenant Delay (as defined in the Amendment to which this Exhibit is attached)
for each day during the period beginning on the day following the Plans Due
Date and ending on the date completed Plans are approved.  (The word “architect” as used in this Exhibit
shall include an interior designer or space planner.)

 

3.             If
Landlord’s estimate and/or the actual cost of construction shall exceed the
Allowance, Landlord, prior to commencing any construction of Landlord Work,
shall submit to Tenant a written estimate setting forth the anticipated cost of
the Landlord Work, including but not limited to labor and materials, contractor’s
fees and permit fees.  Within 3 Business
Days thereafter, Tenant shall either notify Landlord in writing of its approval
of the cost estimate, or specify its objections thereto and any desired changes
to the proposed Landlord Work.  If Tenant
notifies Landlord of such objections and desired changes, Tenant shall work
with Landlord to reach a mutually acceptable alternative cost estimate.

 

4.             If
Landlord’s estimate and/or the actual cost of construction shall exceed the
Allowance, if any (such amounts exceeding the Allowance being herein referred
to as the “Excess Costs”), Tenant shall pay to Landlord such Excess Costs, plus
any applicable state sales or use tax thereon, upon demand.  The statements of costs submitted to Landlord
by Landlord’s contractors shall be conclusive for purposes of determining the
actual cost of the items described therein. 
The amounts payable by Tenant hereunder constitute Rent payable pursuant
to the Lease, and the failure to timely pay same constitutes an event of
default under the Lease.

 

5.             If
Tenant shall request any change, addition or alteration in any of the Plans
after approval by Landlord, Landlord shall have such revisions to the drawings
prepared, and Tenant shall reimburse Landlord for the cost thereof, plus any
applicable state sales or use tax thereon, upon demand.  Promptly upon completion of the revisions,
Landlord shall notify Tenant in writing of the increased cost which will be
chargeable to Tenant by reason of such change, addition or deletion.  Tenant, within one Business Day, shall notify
Landlord in writing whether it desires to proceed with such change, addition or
deletion.  In the absence of such written
authorization, Landlord shall have the option to continue work on the Premises
disregarding the requested change, addition or alteration, or Landlord may
elect to discontinue work on the Premises until it receives notice of Tenant’s
decision, in which event Tenant shall be responsible for any Tenant Delay in
completion of the Premises resulting therefrom. 
If such revisions result in a higher estimate of the cost of
construction and/or higher actual construction costs which exceed the
Allowance, such increased estimate or costs shall be deemed Excess Costs
pursuant to Paragraph 4 hereof and Tenant shall pay such Excess Costs, plus any
applicable state sales or use tax thereon, upon demand.

 

2

 

6.             Following
approval of the Plans and the payment by Tenant of the required portion of the
Excess Costs, if any, Landlord shall cause the Landlord Work to be constructed
substantially in accordance with the approved Plans.  Landlord shall notify Tenant of substantial
completion of the Landlord Work.

 

7.             Landlord,
provided Tenant is not in default, agrees to provide Tenant with an allowance
(the “Allowance”) in an amount not to exceed $15,002.56 (i.e., $10.84 per rentable square foot of
the Premises) to be applied toward the cost of the Landlord Work in the
Premises.  If the Allowance shall not be
sufficient to complete the Landlord Work, Tenant shall pay the Excess Costs,
plus any applicable state sales or use tax thereon, as prescribed in Paragraph
4 above.  Any portion of the Allowance
which exceeds the cost of the Landlord Work or is otherwise remaining after                       ,
20     , shall accrue to the sole benefit of Landlord,
it being agreed that Tenant shall not be entitled to any credit, offset,
abatement or payment with respect thereto.

 

8.             This
Exhibit shall not be deemed applicable to any additional space added to the
Premises at any time or from time to time, whether by any options under the
Lease or otherwise, or to any portion of the original Premises or any additions
to the Premises in the event of a renewal or extension of the original Term of
the Lease, whether by any options under the Lease or otherwise, unless
expressly so provided in the Lease or any amendment or supplement to the Lease.

 

3Exhibit
10.15

 

February
20, 2004

Ms. Alice Leung

 

Dear Alice:

BioMedicines, Inc. (the “Company”) is pleased to offer you employment
as President and Chief Executive Officer (“CEO”) of the Company on the
following terms:

1.     Position;
Effective Date.  As President and CEO, you will report to
the Company’s Board of Directors (the “Board”), and will perform the duties
customarily associated with this position and such other duties assigned by the
Board.  You will also be appointed to the
Board of Directors of the Company at its first regularly-scheduled meeting
following your first date of full time employment with the Company (the “Start
Date”).  You shall devote your full time
and attention during normal business hours to the business affairs of the
Company, except for reasonable vacations and periods of illness or
incapacity.  This agreement shall be
effective upon your first date of full time employment with the Company,
provided that this agreement shall not take effect if the Start Date does not
occur on or prior to March 22, 2004.

2.     Compensation
and Employee Benefits.

2.1          Base
Salary.  Your annual base salary will be $300,000,
less payroll deductions and required withholdings, paid according to the
Company’s regular payroll schedule and procedures.  At no time during your employment with the
Company will such annual base salary be reduced below $300,000 unless such
reduction is made in connection with and in an amount commensurate with an
across-the-board reduction of the salaries of senior executive employees of the
Company.

2.2          Performance
Bonus.  You will be eligible to earn an annual
performance bonus with a target of thirty percent (30%) of your annual base
salary based on the Company’s performance and your achievement of individual
performance goals in a given calendar year, as determined in good faith by the
Board in its sole discretion.  You will
be eligible for any such bonus if you are employed at the end of the bonus
period (December 31).  Any bonus payment
shall be subject to payroll deductions and required withholdings.  The Board in its sole discretion may deliver
shares of the common stock of the Company (the “Common Stock”) in payment for a
portion of such bonus, provided that the cash portion of such bonus would be
sufficient to cover your tax obligations in respect thereto.

2.3          Mortgage
Assistance Payments.
Provided that you continue to be employed by the Company, the Company will
provide you with mortgage assistance in an amount not to exceed $1,000 per
month (the “Mortgage Assistance Payment”), through December 31, 2006. In the
event that your employment with the Company terminates for any

 

1

 

reason, the
Company will be under no obligation to make any Mortgage Assistance Payment to
you following the date of such termination.

2.4          Loan
Retirement Payment.  Within five (5) business days of the date you
commence employment with the Company (the “Start Date”), the Company will pay
you an amount equal to $100,000 (the amount of the relocation loan due to your
current employer (the “Loan”)) plus an additional amount equal to the
associated federal, state and other income taxes owed by you in connection with
the repayment of such Loan (collectively, the “Loan Retirement Amount”),
subject to payroll deductions and required withholdings, in order to fund your
repayment of such Loan.  Notwithstanding
the foregoing, the Loan Retirement Amount may be repayable by you to the
Company pursuant to Section 5 below. Except as otherwise provided herein, the
Loan Retirement Amount will not be repayable by you to the Company.

2.5          Employee
Benefits.  You shall be entitled to all benefits,
including vacation, health and disability benefits, for which you are eligible
under the terms and conditions of the standard Company benefit plans, which may
be in effect from time to time and provided by the Company to its senior
executive level employees generally.

2.6          Stock
Options.  Subject to approval by the Board at its first
regularly-scheduled meeting following the Start Date, you will be granted an
incentive stock option (to the maximum extent permitted under Section 422 of
the Internal Revenue Code (the “Code”)) to purchase that number of shares of
Common Stock which constitute four and one quarter percent (4.25%) of the “fully-diluted”
outstanding capital stock of the Company calculated as of the date of grant
(including as outstanding any outstanding but unexercised options and warrants
to purchase Company capital stock and the conversion of all preferred stock
into common stock at the then-applicable conversion rate) (which translates to
six million three hundred eighty-nine thousand one hundred fifty (6,389,150)
shares of Common Stock). The per share exercise price of such stock options
will be equal to the per share fair market value of the Common Stock on the
date of grant, as determined by the Board. 
The term of such stock option is ten (10) years, subject to earlier
expiration in the event of the termination of your continuous service with the
Company.  Such stock option is
immediately exercisable, if you elect to do so, but the portion of the
purchased shares that is unvested at the time shall be subject to repurchase by
the Company at the lower of (i) the original exercise price and (ii) the
then-fair market value of the Company’s common stock in the event that your
service with the Company terminates before you become fully vested in the
shares. If the Company’s Common Stock is publicly traded and quoted regularly
in The Wall Street Journal at the time of
option exercise, you may pay the exercise price (x) for the vested portion
of the stock option pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board that, prior to the issuance of Common
Stock, results in either the receipt of cash (or check) by the Company or the
receipt of irrevocable instructions to pay the aggregate exercise price to the
Company from the sales proceeds and (y) for the vested or unvested portion
of the stock option by delivery of already-owned shares of Common Stock either
that you have held for the period required to avoid a charge to the Company’s
reported earnings (generally six (6) months) or that you did not acquire,
directly or indirectly from the Company, if and to the extent permitted by
applicable law.  The shares subject to
the grant will vest, and the Company’s repurchase right, if applicable, shall
not apply, as to the option shares in sixty (60) equal monthly installments
with the first monthly

 

2

 

installment
vesting on the one-month anniversary of the Start Date.  Notwithstanding the foregoing, a portion of
the shares subject to your outstanding stock options may vest on an accelerated
basis pursuant to Section 6 below. 
Except as provided herein, such stock options will be subject to the
provisions of the equity incentive plan of the Company under which the options
are granted and the applicable form of stock option agreement thereunder.

3.     Other
Activities During Employment.

3.1          Activities. 
Except with the prior written consent of the Board, you will not during
your employment undertake or engage in any other employment, occupation or
business enterprise. You may engage in civic and not-for-profit activities so
long as such activities do not interfere with the performance of your job
duties.

3.2          Investment
and Interests.  Except as permitted by Section 3.3 below,
during your employment you agree not to acquire, assume or participate in,
directly or indirectly, any position, investment or interest known by you to be
adverse or antagonistic to the Company, or its business or prospects, financial
or otherwise.

3.3          Noncompetition. 
During the term of your employment by the Company except on behalf of
the Company, you will not directly or indirectly, whether as an officer,
director, stockholder, partner, proprietor, associate, representative,
consultant, or in any capacity whatsoever engage in, become financially
interested in, be employed by or have any business connection with any other
person, corporation, firm, partnership or other entity whatsoever that competes
with the Company anywhere in the world, in any line of business engaged in (or
planned to be engaged in) by the Company without the prior consent of the
Board; provided, however, that anything above to the contrary notwithstanding,
you may own, as a passive investor, securities of any entity, so long as your
direct holdings in any one such corporation do not in the aggregate constitute
more than one percent (1%) of the voting stock of such corporation or have a
value in excess of $100,000 at the time of purchase.

4.     Company
Policies; Proprietary Information and Inventions Agreement. 
You agree to execute the Company’s Proprietary Information and
Inventions Agreement, a copy of which is attached hereto as
Exhibit A.  You further agree to
abide by the Company’s rules, policies and procedures.

5.     Termination
of Employment.

5.1          At-Will
Employment Relationship.  Your employment with the
Company shall be at-will.  The Company
may terminate the employment relationship at any time, with or without Cause
(as defined below) and with or without advance notice. You may terminate the
employment relationship at any time, with or without Cause and upon sixty (60)
days advance notice to the Company, or such shorter period as the Company may
deem acceptable.

 

3

 

5.2          Voluntary
Termination.

(a)           If you terminate your employment at any
time, without Good Reason (as defined below), you shall not be entitled to
severance pay, pay in lieu of notice or any other such compensation other than
payment of accrued salary and vacation and such other benefits as expressly
required in such event by applicable law or the terms of applicable benefit
plans.  The continued vesting of any
stock options held by you shall cease on the termination date, and your right
to exercise vested option shares shall be governed by the terms of the
Company’s applicable stock option plans and the corresponding stock option
agreements. If you terminate your employment without Good Reason prior to the
third anniversary of the Start Date, any Loan Retirement Amount paid to you
pursuant to Section 2.5 above will become due and payable by you to the Company
within ninety (90) days of the termination date.

5.3          Termination
for Cause, Death or Disability.

(a)            If the Company terminates your
employment at any time for Cause (as defined below) or if your employment is
terminated by reason of your death or disability (defined as the inability, in
the opinion of a qualified physician acceptable to the Company, to perform the
requirements of your position with the Company because of any disease or
condition for a continuous period of more than 90 days) your salary shall cease
on the date of termination and you shall not be entitled to severance pay, pay
in lieu of notice or any other such compensation other than payment of accrued
salary and vacation and such other benefits as expressly required in such event
by applicable law or the terms of applicable benefit plans.  The continued vesting of any stock options
held by you shall cease on the termination date, and your right to exercise
vested option shares shall be governed by the terms of the Company’s applicable
stock option plans and the corresponding stock option agreements. If the
Company terminates your employment for Cause prior to the third anniversary of
the Start Date, but not in the event of the termination of your employment by
reason of death or disability, any Loan Retirement Payment paid to you pursuant
to Section 2.5 above will become due and payable by you to the Company within
ninety (90) days of the termination date.

(b)           Definition
of Cause.  For purposes of this agreement, “Cause” means
the occurrence of any one or more of the following:  (i) your conviction of, or plea of no contest
with respect to, any felony; (ii) your participation in a fraud or act of
dishonesty that results in material harm to the Company; (iii) your violation
of a fiduciary duty owed to the Company; (iv) your material violation of any contract
or agreement between you and the Company, including but not limited to this
agreement or your Proprietary Information and Inventions Agreement; or (v) your
failure to comply with the direct, lawful instructions of the Board or any
action taken by you without adequate authority from the Board that has not been
cured within 30 days after notice from the Board of such failure or action.

5.4          Severance
Benefits For Termination Without Cause or Resignation for Good Reason.

(a)           If the Company terminates your employment
without Cause or you resign your employment for Good Reason (defined below),
you will receive twelve (12) months of your base salary in effect as of such
termination date. In addition you will receive an amount equal to the annual
performance bonus earned by you in the calendar year preceding such

 

4

 

termination date.
This base salary and bonus severance will be paid according to the Company’s
payroll procedures during the twelve (12) month period following the
termination date. Payments made hereunder shall be reduced by the amounts, if
any, that you can earn from other employment during such twelve (12) month
period. You will also continue to receive the Mortgage Assistance Payments
specified in Section 2.3 above through December 31, 2006. Moreover, if you
timely elect continued coverage of your group health insurance under COBRA, the
Company will pay your premiums for COBRA coverage for up to twelve (12) months
following the termination date, provided that such payments shall cease if you
obtain full-time employment or otherwise become eligible for health care
coverage from another source within such period. Your receipt of any severance
benefits under this Section 5.4 is contingent upon your signing and making
effective the Release Agreement (attached as Exhibit B) on or after the
termination date.

(b)           Definition
of Good Reason.  For purposes of this Agreement, “Good Reason”
shall mean any one of the following events that occurs without your consent:
(i) the material reduction in your responsibilities, authorities or functions
as an employee of the Company; (ii) a reduction in your level of compensation
(including base salary, fringe benefits and target bonuses under any
corporate-performance based bonus or incentive programs, other than in
connection with a commensurate across-the-board reduction); (iii) a relocation
of your place of employment by more than fifty (50) miles; (iv) an involuntary
petition is filed against the Company (unless such petition is dismissed or
discharged within sixty (60) days) under any bankruptcy statute now or
hereafter in effect, or a custodian, receiver, trustee, assignee for the
benefit of creditors (or other similar official) is appointed to take
possession, custody or control of any property of the Company; (v) the Company
files any petition or action for relief under any bankruptcy, reorganization,
insolvency or moratorium law or any other law for the relief of, or relating
to, debtors, now or hereafter in effect, or makes any assignment for the
benefit of creditors or takes any corporate action in furtherance of any of the
foregoing; or (vi) the Company’s material breach of this Agreement.  Notwithstanding the foregoing, you must
provide the Company with sixty (60) days’ advance written notice of Company’s
conduct giving rise to Good Reason (the “Cure Period”) and during the Cure
Period, the Company may attempt to rescind or correct the matter giving rise to
Good Reason.  If the Company does not
rescind or correct the conduct giving rise to Good Reason to your reasonable
satisfaction by the expiration of the Cure Period, your employment will then
terminate with Good Reason.

6.     Change
in Control.

6.1          Definition.  “Change in Control” shall mean (a) a consolidation or
merger of the Company with or into any other corporation or other entity or
person, or any corporate reorganization in which the stockholders of the
Company immediately prior to such consolidation, merger or reorganization, own
less than 50% of the voting power of the surviving entity immediately after
such consolidation, merger or reorganization, (b) a transaction or series of
related transactions to which the Company is a party in which in excess of
fifty percent (50%) of the Company’s voting power is transferred (not including
any transaction or series of transactions principally for bona fide equity
financing purposes in which cash is received by the Company or indebtedness of
the Company is cancelled or converted or a combination thereof), or (c) a sale of
all or substantially all of the assets of the Company.

 

5

 

6.2          Stock
Options.  In the event that within twelve (12) months
following a Change in Control, the Company terminates your employment without
Cause (as defined above) or you resign for Good Reason (as defined above) (a
“Change in Control Termination”), any remaining unvested portion of all stock
options held by you shall have the vesting accelerated such that all options
are fully vested and exercisable as of the date of the Change in Control
Termination (the “Acceleration”). 
Notwithstanding the foregoing, if your employment is terminated by the
Company without Cause prior to a Change in Control and the Board determines
that such termination (i) was at the request of a third party who has
indicated an intention or taken steps reasonably calculated to effect a Change
in Control and who subsequently effectuates a Change in Control or
(ii) otherwise occurred in connection with, or in anticipation of, a Change
in Control which actually occurs, then, your termination of employment shall be
deemed a Change in Control Termination and you will be entitled to receive the
Acceleration.  Your receipt of the
Acceleration is contingent upon your signing and making effective the Release
Agreement (attached as Exhibit B) on or after the termination date.

6.3          Parachute
Payments.

If
any payment or benefit you would receive pursuant to a Change in Control from
the Company or otherwise (“Payment”) would (i) constitute a “parachute payment”
within the meaning of Section 280G of the Code, and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then such Payment shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment
being subject to the Excise Tax or (y) the largest portion, up to and including
the total, of the Payment, whichever amount, after taking into account all
applicable federal, state and local employment taxes, income taxes, and the
Excise Tax (all computed at the highest applicable marginal rate), results in
your receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the
Excise Tax. If a reduction in payments or benefits constituting “parachute
payments” is necessary so that the Payment equals the Reduced Amount, reduction
shall occur in the following order unless you elect in writing a different
order (provided, however, that such election shall be subject to Company
approval if made on or after the effective date of the event that triggers the
Payment): reduction of cash payments; cancellation of accelerated vesting of
stock options; reduction of employee benefits. 
In the event that acceleration of vesting of stock compensation is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order
of the date of grant of your stock options (i.e., earliest granted stock
options cancelled last) unless you elect in writing a different order for
cancellation.

The
accounting firm engaged by the Company for general audit purposes as of the day
prior to the effective date of the Change in Control shall perform the
foregoing calculations.  If the
accounting firm so engaged by the Company is serving as accountant or auditor
for the individual, entity or group effecting the Change in Control, the
Company shall appoint a nationally recognized accounting firm to make the
determinations required hereunder.  The
Company shall bear all expenses with respect to the determinations by such
accounting firm required to be made hereunder.

Notwithstanding
the foregoing, you may elect to have the Payment submitted to the Company’s
shareholders for approval within the meaning of Section 280G(b)(5)(B) of
the

 

6

 

Code.  In the event shareholder approval is obtained
in accordance with Section 280G(b)(5)(B) of the Code, the Payment will not
constitute a “parachute payment” within the meaning of Section 280G of the Code
and will not be subject to Excise Tax.  
The Company shall bear all expenses associated with submitting the
Payment to the Company’s shareholders for approval.

The accounting firm engaged to make the determinations hereunder shall
provide its calculations, together with detailed supporting documentation, to
you and the Company (i) at least twenty (20) calendar days prior to the
date on which materials are to be sent to shareholders soliciting their
approval of the Change in Control, (ii) in the event shareholder approval
of Payment will not be sought, at least ninety (90) calendar days prior to the
date on which your right to a Payment is triggered or (iii) such other time
as requested by you or the Company.  If
the accounting firm determines that no Excise Tax is payable with respect to a
Payment, either before or after the application of the Reduced Amount, it shall
furnish you and the Company with an opinion reasonably acceptable to you that
no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive upon you
and the Company.

7.     General
Provisions.

7.1          Severability. 
Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, but such invalid, illegal or unenforceable provision
will be reformed, construed and enforced in such jurisdiction so as to render
it valid, legal, and enforceable consistent with the intent of the parties
insofar as possible.

7.2          Entire
Agreement.  This Agreement, together with its exhibits,
constitutes the entire and exclusive agreement between you and the Company, and
it supersedes any prior agreement, promise, representation, or statement,
written or otherwise, between you and the Company with regard to this subject
matter, including the letter dated February 19, 2004.  It is entered into without reliance on any
promise, representation, statement or agreement other than those expressly
contained or incorporated herein, and it cannot be modified or amended except
in a writing signed by you and a duly authorized officer of the Company.

7.3          Successors
and Assigns.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by you, the Company and your and its
respective successors, assigns, heirs, executors and administrators, except
that you may not assign any of your duties hereunder and you may not assign any
of your rights hereunder without the written consent of the Company, which
shall not be withheld unreasonably.

7.4          Governing
Law.  All questions concerning the construction,
validity and interpretation of this Agreement will be governed by the law of
the State of California as applied to contracts made and to be performed
entirely within California.

7.5          Arbitration. 
Any and all controversies, claims or disputes between you and the
Company (including any employee, officer, director, shareholder or benefit plan
of the

 

7

 

Company in their
capacity as such or otherwise) arising out of, relating to, or resulting from
your employment with Company or the termination of your employment with Company
shall be submitted to and settled by binding arbitration in either the County
of Alameda in the State of California in accordance with the Commercial
Arbitration Rules then in effect of the American Arbitration Association (the
“AAA Rules”).  Arbitration will be
conducted by one arbitrator, mutually selected by you and the Company.  If you and the Company fail to mutually
select an arbitrator within a reasonable period of time, then arbitration will
be conducted by three arbitrators: one selected by you; one selected by the
Company; and the third selected by the first two arbitrators.  The final decision of the arbitrator(s) shall
be furnished to  you and the Company in
writing and shall constitute a conclusive determination of the issue(s) in
question, binding upon you and the Company and shall not be contested by either
you or the Company.  You acknowledge and
agree that you are agreeing to arbitrate disputes voluntarily and without any
duress or undue influence by the Company or anyone else. You further
acknowledge and agree that you have carefully read these terms and that you
have asked any questions needed for you to understand the terms, consequences
and binding effect of this agreement and fully understand it, including that
you are waiving your right to a jury trial. 
Finally, you agree that you have been provided an opportunity to seek
the advice of an attorney of your choice before signing up to these terms.

 

 

 

[THIS
SPACE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

8

 

To indicate your acceptance of the Company’s offer
of continued employment, please sign and date this Agreement in the space
provided below and return it to me.

Sincerely,

	
   

  
	
  BIOMEDICINES, INC.

  
	
   

  
	
  By:

  	
  /s/Bryan E. Roberts

  	
   

  
	
   

  	
  BRYAN E. ROBERTS, PH.D.

  
	
   

  	
  Director

  

 

	
  Accepted
  and agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Alice
  Leung

  	
   

  	
  2/24/2004

  
	
  ALICE LEUNG

  	
   

  	
  DATE

  

 

EXHIBIT A - Proprietary Information and
Inventions Agreement

EXHIBIT B - Release Agreement

 

9

 

EXHIBIT A

PROPRIETARY INFORMATION AND
INVENTIONS AGREEMENT

 

10

 

EXHIBIT B

RELEASE AGREEMENT

(To be signed on or after the Separation Date)

I understand that my employment with BioMedicines,
Inc. (the “Company”) terminated effective                              ,
           (the “Separation
Date”).  The Company has agreed that if I
choose to sign this Release Agreement (“Release”), the Company will provide
certain severance benefits (minus the required withholdings and deductions)
pursuant to the terms of the employment agreement dated February ___, 2004 (the
“Agreement”).  I understand that I am not
entitled to such severance benefits unless I sign this Release, and it becomes
fully effective.  I
understand that, regardless of whether I sign this Release, the Company will
pay me all of my accrued salary and vacation through the Separation Date, to
which I am entitled by law.

In consideration for the severance benefits I am
receiving under the Agreement, as described therein, I hereby agree to release
the Company and its officers, directors, agents, attorneys, employees,
shareholders, parents, subsidiaries, affiliates, successors, and assigns, of
and from any and all claims, liabilities, demands, causes of action, costs,
expenses, attorneys’ fees, damages, indemnities and obligations of every kind
and nature, in law, equity, or otherwise, known or unknown, suspected and
unsuspected, disclosed and undisclosed, liquidated or contingent, arising out
of or in any way related to agreements, events, acts or conduct at any time
prior to and including the execution date of this Release, including but not
limited to:  any and all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment; claims or
demands related to salary, bonuses, commissions, incentive payments, stock,
stock options, or any ownership or equity interests in the Company, vacation
pay, personal time off, fringe benefits, expense reimbursements, severance
benefits, or any other form of compensation; claims pursuant to any federal,
any state or any local law, statute, common law or cause of action including,
but not limited to, the federal Civil Rights Act of 1964, as amended; the
federal Americans with Disabilities Act of 1990; the federal Employee
Retirement Income Security Act; the federal Age Discrimination in Employment
Act of 1967, as amended (“ADEA”); the California Fair Employment and Housing
Act, as amended; tort law; contract law; wrongful discharge; discrimination;
harassment; fraud; misrepresentation; defamation; libel; emotional distress;
and breach of the implied covenant of good faith and fair dealing.

In releasing claims unknown to me at present, I am
waiving all rights and benefits under Section 1542 of the California Civil
Code, and any law or legal principle of similar effect in any
jurisdiction:  “A general
release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.”

I acknowledge that I am knowingly and voluntarily
waiving and releasing any rights I may have under the ADEA and that the
consideration given for the waiver in the above paragraphs is in addition to
anything of value to which I was already entitled.  I have been advised by this writing, as
required by the ADEA, that:  (a) my
waiver and release do not apply to any claims that may arise after my signing
of this Release; (b) I should consult with an attorney prior to signing
this Release; (c) I have twenty-one (21) days within which to consider
this Release

 

1

 

(although I may choose to voluntarily sign this
Release earlier); (d) I have seven (7) days after I sign this Release to revoke
it; and (e) this Release will not be effective until the eighth day after this
Release has been signed by me.

I accept and agree to the terms and conditions stated above:

	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Alice Leung

  

 

 

2

 

PROPRIETARY
INFORMATION AND INVENTIONS AGREEMENT

 

 

February 20,
2004

 

BioMedicines, Inc.

2000 Powell
Street, Suite 1640

Emeryville, CA
94608

 

To:                              BioMedicines
Management

 

The following confirms an
agreement between me and BioMedicines, Inc., a Delaware corporation (the “Company,”
which term includes the Company’s subsidiaries, successors and assigns), which
is a material part of the consideration for my employment by the Company:

 

1.                                      “Proprietary
Information” is information that was or is developed by, became or becomes
known by, or was or is assigned or otherwise conveyed to the Company, and which
has commercial value in the Company’s business. Proprietary Information
includes, without limitation, trade secrets, financial information, product
plans, customer lists, marketing plans and strategies, forecasts and other
business information, improvements, inventions, business strategies, formulas,
product ideas, works of authorship, processes, copyrightable or patentable
material, schematics, biological material (including cell lines, antibodies,
c-DNAs, antisense nucleotides, proteins, vectors, new chemical entities, media,
reagents and related materials) and techniques for their handling and use,
computer programs, algorithms, techniques, schematics, know-how and data, and
any other confidential or proprietary information of the Company or its
customers or clients which I have been, or may be exposed to, or have learned
or may learn of from time to time in connection with or as a result of my
capacity as a consultant to the Company or during the term of this Agreement.
Proprietary Information shall not include information that is through no
improper action or inaction by me, generally available to the public. I
understand that my employment creates a relationship of confidence and trust
between me and the Company with respect to Proprietary Information of the
Company or its customers which may be learned by me during the period of my
employment.

 

2.                                      In
consideration of my employment by the Company and the compensation received by
me from the Company from time to time, I hereby agree as follows:

 

(a)                                  All
Proprietary Information and all patents, copyrights, trade secret rights, and
other rights (including throughout, without limitation, any extensions,
renewals, continuations or divisions of any of the foregoing) in connection
therewith shall be the sole property of the Company. I hereby assign to the
Company any rights I may have or acquire in such Proprietary Information. At
all times, both during my employment by the Company and after its termination,
I will keep in confidence and trust and will not use or disclose any
Proprietary Information or anything relating to it without the written consent
of the Company, except as may be necessary in the ordinary course of performing
my duties to the Company.

 

(b)                                  In
the event of the termination of my employment by me or by the Company for any
reason, I shall return all documents, records, apparatus, equipment and other

 

 

physical
property, or any reproduction of such property, whether or not pertaining to
Proprietary Information, furnished to me by the Company or produced by myself
or others in connection with my employment, to the Company immediately as and
when requested by the Company.

 

(c)                                  I
will promptly disclose to the Company, or any persons designated by it, all “Inventions”,
which includes all improvements, inventions, formulas, ideas, works of
authorship, processes, computer programs, algorithms, techniques, schematics,
know-how and data, whether or not patentable, made or conceived or reduced to
practice or developed by me, either alone or jointly with others, during the
term of my employment and for three (3) months thereafter. To the extent the
Company does not have rights therein hereunder, such disclosure shall be
received by the Company in confidence and does not extend the assignment made
in Section (e) below.

 

(d)                                  During
the term of my employment and for one (1) year thereafter, I will not encourage
or solicit any employee of the Company to leave the Company for any reason or
to devote less than all of any such employee’s efforts to the affairs of the
Company, provided that the foregoing shall not affect any responsibility I may have
as an employee of the Company with respect to the bona fide hiring and firing
of Company personnel.

 

(e)                                  I
agree that all Inventions which I make, conceive, reduce to practice or develop
(in whole or in part, either alone or jointly with others) during my employment
shall be the sole property of the Company to the maximum extent permitted by Section 2870
of the California Labor Code, a copy of which is attached herewith, and to the
extent permitted by law shall be “works made for hire”. The Company shall be
the sole owner of all patents, copyrights, trade secret rights, and other
intellectual property or other rights in connection therewith. I hereby assign
to the Company any rights I may have or acquire in such Inventions. I agree to
perform, during and after my employment, all acts deemed necessary or desirable
by the Company to permit and assist it, at the Company’s expense, in obtaining
and enforcing patents, copyrights, trade secret rights or other rights on such
Inventions and/or any other Inventions I have or may at any time assign to the
Company in any and all countries. Such acts may include, but are not limited
to, execution of documents and assistance or cooperation in legal proceedings.
With respect to any and all matters arising out of or relating to my employment
or consultancy with the Company, I hereby irrevocably designate and appoint the
Company and its duly authorized officers and agents, as my agents and
attorneys-in-fact to act for and in my behalf and instead of me, to execute and
file any applications or related filings and to do all other lawfully permitted
acts to further the prosecution and issuance of patents, copyrights, trade
secret rights or other rights thereon with the same legal force and effect as
if executed by me.

 

(f)                                    I
attach hereto a complete list of all Inventions or improvements to which I
claim ownership and/or that I desire to remove from the operation of this
Agreement, and I covenant that such list is complete. If no such list is
attached to this Agreement, I represent that I have no such Inventions and
improvements at the time of signing this Agreement. I understand that any such
list shall not contain information that breaches an obligation of
confidentiality with a former employer.

 

(g)                                 I
represent that my performance of all the terms of this Agreement will not
breach any agreement or obligation to keep in confidence proprietary
information acquired by

 

2

 

me in
confidence or in trust prior to my employment by the Company. I have not
entered into, and I agree I will not enter into, any agreement either written
or oral in conflict herewith or in conflict with my employment with the
Company.

 

3.                                      In
consideration of the foregoing, the Company agrees that it will not request as
part of my employment that I divulge or make use of confidential information of
any of my former employers that has commercial value to the former employer who
developed such information.

 

4.                                      This
Agreement shall be effective as of the first day of my employment by the
Company, and shall be binding upon me, my heirs, executors, assigns, and
administrators and shall inure to the benefit of the Company, its subsidiaries,
successors and assigns.

 

Accepted and
Agreed to:

 

	
  Dated:

  	
  2/24/04

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Karling
  Alice Leung

  	
   

  	
  By:

  	
  /s/ James Ahlers

  	
   

  
	
  Karling Alice
  Leung

  	
   

  	
   

  	
  Jams Ahlers

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
  BioMedicines, Inc.

  
							

 

3

 

EXHIBIT A

 

1.                                      The
following is a complete list of all inventions or improvements relevant to the
subject matter of my employment by BioMedicines, Inc. (the “Company”) that have
been made or conceived or first reduced to practice by me alone or jointly with
others prior to my employment by the Company that I desire to remove from the
operation of the Company’s Proprietary Information and Inventions Agreement.

 

ý                                    No inventions or
improvements.

 

2.                                      I
propose to bring to my employment the following materials and documents of a
former employer:

 

ý                                    No materials or
documents.

 

 

	
  /s/ Karling
  Alice Leung

  	
   

  

 

4

 

EXHIBIT
B

 

§2870.
Application of provision providing that employee shall assign or offer to
assign rights in invention to employer.

 

(a)                                  Any
provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer’s equipment,
supplies, facilities, or trade secret information except for those inventions
that either:

 

(1)                                 Relate
at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development
of the employer.

 

(2)                                 Result
from any work performed by the employee for the employer.

 

(b)                                  To
the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable

 

5

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