Document:

Exhibit 10.2

 

AMENDMENT NO. 2 TO SUBLEASE AGREEMENT

 

This Amendment
No. 2 to Sublease Agreement (this “Amendment”) is made as of September 14,
2004 by and between SICOR INC., a Delaware corporation (“Sublandlord”),
and METABASIS THERAPEUTICS, INC., a Delaware corporation (“Subtenant”).

 

RECITALS

 

A.            Sublandlord and Subtenant are
parties to that certain Sublease Agreement dated as of September 1, 2000, as
amended by a certain Amendment No. 1 to Sublease Agreement (“First Amendment”)
dated March 18, 2004 (collectively, as amended, the “Sublease”),
covering certain premises (the “Sublease Premises”) located at 9390
Towne Centre Drive, San Diego, California 92121, as more particularly described
in the Sublease.  All defined terms used
in this Amendment, unless otherwise indicated herein, shall have the meanings
ascribed to them in the Sublease.

 

B.            The Sublease Premises consist of
approximately Forty Thousand Two Hundred (40,200) rentable square
feet of space in the Building, as more particularly described in the
Sublease.  Subtenant desires to expand
into approximately Four Thousand Fifty-Two (4,052) rentable
square feet of additional office space located on the third floor of the
eastern portion of the Building (the “Third Floor Expansion Space”), as
more particularly described in Exhibit “A” attached hereto.

 

C.            Sublandlord and Subtenant wish to
hereby modify certain terms and provisions under the Sublease and are executing
this Agreement to effectuate the modification of the same.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing Recitals, the mutual covenants
hereafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.             Amendment to Sublease.  All terms defined in the Recitals of this
Amendment are hereby incorporated into the Sublease by this reference.  Effective as of the date hereof, the Sublease
is hereby amended as follows:

 

a.             Increase in Sublease Premises.  Effective as of the Third Floor Expansion
Space Commencement Date (defined below), the Sublease Premises are hereby
increased by, and except as otherwise provided herein, all references in the
Sublease to the Sublease Premises shall include the Third Floor Expansion
Space, which Sublease Premises shall be deemed by the parties to equal
approximately Forty-Four Thousand Two Hundred Fifty-Two (44,252)
rentable square feet.  The parties
stipulate that the square footage of the Third Floor Expansion Space shall be
as specified in Recital B above.

 

b.             Condition of the Third Floor
Expansion Space.  Subtenant
acknowledges that (i) it is subleasing the Third Floor Expansion Space in its “as-is,”
unfurnished condition, (ii) Sublandlord is not making any representation or
warranty concerning the condition of the Third

 

 

Floor Expansion Space, (iii)
Sublandlord is not obligated to perform any work to prepare the Third Floor
Expansion Space for Subtenant’s occupancy other than to (A) deliver
the same in broom-clean condition, and (B) change the settings for the security
system permitting access to the Third Floor Expansion Space with “key cards”
(“Office Space Key Cards”) so as to prevent access to certain lab space which
is immediately adjacent to the Third Floor Expansion Space with use of the Office
Space Key Cards, and (iv) Sublandlord is not obligated to provide any tenant
improvement allowance to Subtenant for alterations or improvements to the Third
Floor Expansion Space.  In connection
therewith, Sections 4(g) and 23 of the Sublease shall not apply to the Third
Floor Expansion Space.

 

 

c.             Term for Sublease Third Floor
Expansion Space Term.  Section 2(a)
of the Sublease is hereby amended to provide that the term of the Sublease for
the Third Floor Expansion Space (the “Third Floor Expansion Space Term”)
shall commence on the later of (i) November 1, 2004, and (ii) occupancy of the
Third Floor Expansion Space by Subtenant for purposes of commencing operations
(the “Third Floor Expansion Space Commencement Date”), and shall also
end on the Sublease Expiration Date.

 

(ii)           References to Sublease Term.  All references in the Sublease to the Term
shall be deemed to include the Third Floor Expansion Space Term; provided,
however, the reference to the Term in Section 7 of the Sublease shall
refer solely to the term of the Sublease with respect to the Existing Premises.

 

(iii)          Amendment to Expansion Space Term.  Section 2(a) of the Sublease with respect to
the Expansion Space (as defined in Section 1(c)(i) of the First Amendment) is
hereby amended as follows: (A) the Expansion Space Expiration Date is hereby
amended to be the same date as the Sublease Expiration Date, and (B) Section
1(c)(ii) of the First Amendment relating to the month-to-month extension of the
Expansion Space Term is hereby deleted in its entirety, and Subtenant’s right
to such month-to-month extension is hereby canceled and of no further force and
effect.

 

d.             Base Rental.  Section 4(a) of the Sublease is hereby
amended to provide that, beginning as of the Third Floor Expansion Space Commencement
Date, and thereafter during the Third Floor Expansion Space Term, (i) Subtenant
shall pay to Sublandlord, in addition to the Base Rental for the Existing
Premises and the Expansion Space, monthly installments of Base Rental for the
Third Floor Expansion Space in the amount of Ten Thousand Eight Hundred
Fifty-Nine and 36/100 Dollars ($10,859.36) (“Third Floor
Expansion Space Base Rental”), which amount is calculated at the same rate
applicable to the Existing Premises and the Expansion Space pursuant to
Sections 4(a) and 4(f) of the Sublease, and (ii) Base Rental shall be increased
by, and all references in the Sublease to the Base Rental shall include, the
Third Floor Expansion Space Base Rental. 
The first monthly installment of the Third Floor Expansion Space Base
Rental shall be paid by Subtenant upon execution of this Amendment.  

 

e.             Prorations.  If the Third Floor Expansion Space
Commencement Date is not the first (1st) day of the month, a
prorated installment of monthly Third Floor Expansion Space Base Rental based
on a 30-day month shall be paid for the fractional month during which the Third
Floor Expansion Space Term commenced.

 

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f.              Security Deposit.  Upon execution of this Amendment, Subtenant
shall deposit with Sublandlord, in the form of immediately available funds, an
additional sum equal to one (1) month of the Third Floor Expansion Space Base
Rental, or Ten Thousand Eight Hundred Fifty-Nine and 36/100 Dollars ($10,859.36).  Such additional sum, along with the Deposit
described in Section 5 of the Sublease, shall be collectively referred to as
the “Deposit” and shall be held on the same terms and conditions set forth
therein.

 

g.             Parking.  Section 7 of the Sublease is hereby amended
to provide that beginning as of the Third Floor Expansion Space Commencement
Date, at no additional rent or charge, Subtenant shall have the right during
the Third Floor Expansion Space Term to use on a non-reserved basis thirteen
(13) additional parking spaces in the parking facilities of the Building,
calculated at the rate of 3.2 spaces per 1,000 rentable square feet of the
Third Floor Expansion Space.

 

 

h.             Environmental Condition Prior
Subtenant Study.  Subtenant shall
have no obligation to conduct a Base Line Study as to the Third Floor Expansion
Space; provided, however, Subtenant shall accept the results of a Phase I exit
environmental assessment conducted by the subtenant which most recently
occupied the Third Floor Expansion Space upon such subtenant’s vacation thereof
(the “Third Floor Prior Subtenant Study”) in lieu of a Base Line Study for the
Third Floor Expansion Space.  For
purposes of Section 19(b) of the Sublease, the Prior Subtenant Study shall
constitute the Base Line Study for the Third Floor Expansion Space.  Sublandlord does not make any representations
or warranties as to the accuracy or completeness of the Third Floor Prior
Subtenant Study.

 

(ii)           Obligations as to the Third Floor
Expansion Space.  Notwithstanding any
provision in this Paragraph 1(i) to the contrary, Subtenant shall in no way be
relieved of its obligation to: (A) deliver copies of notices, filings and
permits with respect to Hazardous Substances as they relate to the Third Floor
Expansion Space pursuant to Section 19(a) of the Sublease; (B) conduct a
Subtenant Exit Study as to the Third Floor Expansion Space in accordance with
Section 19(b) of the Sublease; or (C) remediate any Hazardous Substance
contamination in the Third Floor Expansion Space revealed by the Subtenant Exit
Study in accordance with Section 19(b) of the Sublease.  Subtenant shall indemnify, defend and hold
Sublandlord harmless from and against any and all claims, liabilities, costs
and expenses arising out of any Hazardous Substance contamination in the Third
Floor Expansion Space revealed by such Subtenant Exit Study.  Notwithstanding the foregoing, Subtenant
shall have no remediation or indemnity obligation with respect to any
pre-existing contamination revealed by the Third Floor Prior Subtenant Study.

 

i.              Use.  The Third Floor Expansion Space shall be
permitted to be used for office purposes and for no other uses.

 

3

 

2.             Effect of Amendment.  Except as expressly amended under this
Amendment, all provisions of the Sublease shall remain in full force and
effect.  In the event of any conflict
between this Amendment and the Sublease, this Amendment shall control to the
extent of such conflict.

 

3.             Entire Agreement.  This Amendment constitutes the entire
agreement between the parties pertaining to the subject matter hereof, and the
final, complete and exclusive expression of the terms and conditions thereof,
and all prior agreements, representations, negotiations and understandings of
the parties hereto, oral or written, express or implied, are hereby superseded
and merged herein.  This Amendment may be
executed in one or more counterparts, each of which shall be deemed an
original, and all of which shall constitute one and the same binding agreement.

 

[Remainder of page intentionally left blank.]

 

4

 

IN WITNESS
WHEREOF, the undersigned have executed this Amendment No. 2 to Sublease as of
the date first written above.

 

	
  SUBTENANT:

  	
  SUBLANDLORD:

  
	
   

  	
   

  
	
  METABASIS
  THERAPEUTICS, INC.,

  a Delaware corporation  

  	
  SICOR INC.,

  a Delaware corporation  

  
	
   

  	
   

  
	
  By:

  	
  /s/ John W.
  Beck

  	
   

  	
  By:

  	
  /s/ Armand
  J. LeBlanc

  	
   

  
	
  Name:

  	
  John W. Beck

  	
   

  	
  Name:

  	
  Armand J.
  LeBlanc

  	
   

  
	
  Its:

  	
  VP Finance
  and CFO

  	
   

  	
  Its:

  	
  Vice
  President

  	
   

  
											

 

5

 

EXHIBIT “A”

 

Third Floor Expansion Space

 

[Attached]Exhibit 10.1

 

TRADEMARK LICENSE
EXTENSION AGREEMENT

 

 

                This
Extension Agreement dated as of August 1, 2004 is by and between Hallmark
Cards, Incorporated (“Hallmark”) and Crown Media International, LLC (“Crown”).

 

                WHEREAS,
Crown and Hallmark have previously entered into that certain Amended and
Restated Trademark License Agreement between the parties dated as of December
1, 2000 as amended and extended as of November 30, 2002 and as of August 28,
2003 (the “License Agreement”); and

 

                WHEREAS,
the parties desire to further extend the term of the License Agreement;

 

                NOW,
THEREFORE, Crown and Hallmark hereby agree as follows:

 

                The
term of the License Agreement shall be extended for an additional period
terminating on September 1, 2005, subject to any earlier termination pursuant
to the terms of the License Agreement.

 

                All
other terms and conditions of the License Agreement will remain unchanged and
in full force and effect.

 

                IN
WITNESS WHEREOF, the parties hereto have executed this Extension Agreement as
of the date set forth above.

 

 

	
  HALLMARK CARDS, INCORPORATED

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Brian E. Gardner

  	
   

  
	
   

  	
  Brian E. Gardner

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CROWN MEDIA INTERNATIONAL, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ C. Stanford

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

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