Document:

EXEL 2015.06.30 Exhibit 10.4

Exhibit 10.4
FIRST AMENDMENT TO SUBLEASE
THIS FIRST AMENDMENT TO SUBLEASE (this "First Amendment") is made as of October 1, 2013 (the “Effective Date”), by and between EXELIXIS, INC., a Delaware corporation ("Sublandlord"), and THRESHOLD PHARMACEUTICALS, INC., a Delaware corporation ("Subtenant").
RECITALS
A.    Sublandlord and Subtenant entered into that certain Sublease dated as of July 25, 2011 (the "Sublease"). Pursuant to the Sublease, Subtenant subleases certain premises consisting of approximately 28,180 rentable square feet ("Subleased Premises") in a building located at 170 Harbor Way, South San Francisco, California. The Subleased Premises are more particularly described in the Sublease. Capitalized terms used herein without definition shall have the meanings defined for such terms in the Sublease.
B.      Sublandlord and Subtenant desire, subject to the terms and conditions set forth below, to amend the Sublease to, among other things, increase the rentable square footage subleased by Subtenant by adding to the Subleased Premises the two rooms (the “Expansion Space”) containing 470 rentable square feet in the aggregate that are located on the first floor of Building 170 and are designated as “PCR Lab” on Exhibit A attached to this First Amendment.
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sublandlord and Subtenant hereby agree as follows, as of the Effective Date:
		
	1.
	Rentable Square Footage.  The Subleased Premises are expanded to include the Expansion Space.  Accordingly, the last sentence of Section 1 of the Sublease is hereby deleted in its entirety and replaced with the following:

“The parties hereto agree to the rentable square footage of the Subleased Premised is 28,650, and such rentable square footage, and any of the economic terms hereof based thereon, shall not be adjusted based on further re-measurement.”
		
	2.
	Base Rent.  The base rent calculations set forth in Section 4(a) related to the “Third Floor Subleased Premises and First floor server and waste rooms” is hereby deleted in its entirety and replaced with the following:

“Subleased Premises other than the Vivarium Sublease Premises (24,280 RSF): 
Months 1-4        $0.00/rsf/mo.        $0.00
Months 5-11        $1.65/rsf/mo.        $39,286.50
Months 12-23        $1.75/rsf/mo.        $41,667.50
Month 24        $1.80/rsf/mo.        $42,858.00
Months 25-35        $1.80/rsf/mo.        $43,704.00
Months 36-47        $1.85/rsf/mo.        $44,918.00
Months 48-59        $1.95/rsf/mo.        $47,346.00
Months 60-67        $2.00/rsf/mo.        $48,560.00”

		
	3.
	Additional Rent.  The first sentence of Section 4(b) of the Sublease is hereby deleted in its entirety and replaced with the following:

“During the Sublease Term, if Sublandlord shall be charged for additional rent or other sums pursuant to any of the provisions of the Master Lease, including, without limitation, “Operating Expenses”, as defined in Section 7.2 of the Master Lease, and real property taxes, as set forth in Section 6.2 of 

	
			
	 
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the Master Lease, as each is incorporated herein by reference, but excepting those sums incurred by Sublandlord as a result of Sublandlord’s breach of the Master Lease, Subtenant shall pay, as “Additional Rent,” 100% of such additional rent or sums that relate to the Subleased Premises, and if the same cannot be so allocated then 40.9% of those charges that relate generally to Building 170 or 24.1% of those charges that relate generally to the Master Premises (as applicable, “Subtenant’s Share”); provided, however, that Subtenant shall be entitled to a proportional share of any refund of such additional rent or sums received by Sublandlord from Master Landlord in accordance with Section 7.4 of the Master Lease.”
		
	4.
	Map of Subleased Premises. Exhibit A to the Sublease is hereby deleted in its entirety and replaced with the Exhibit A attached to this First Amendment.

		
	5.
	Condition of Expansion Space.  On the Effective Date, Sublandlord shall deliver possession of the Expansion Space to Subtenant in broom-clean condition with all personal property removed.  Section 3(a) of the Sublease shall apply to the Expansion Space as if fully set forth in this First Amendment, except that “Effective Date” is substituted for “Start Date” wherever that term appears in such section.

		
	6.
	Miscellaneous.

a.    Sublandlord and Subtenant expressly acknowledge and agree that this First Amendment is subject to Master Landlord’s prior written consent to this First Amendment, on a form to be provided by Master Landlord that is reasonably acceptable to Sublandlord and Subtenant (“Master Landlord’s Consent”).  Sublandlord shall use commercially reasonable efforts to obtain Master Landlord’s Consent, and Subtenant agrees to cooperate in all reasonable respects in connection therewith.  If Sublandlord fails to obtain Master Landlord’s Consent within thirty (30) days after execution of this Sublease by both Subtenant and Sublandlord, then either Sublandlord or Subtenant may terminate this First Amendment by giving written notice thereof to the other, and Sublandlord shall return to Subtenant any amounts delivered by Subtenant under this First Amendment.  Neither party shall have any liability to the other for any termination or cancellation of this First Amendment as a result of Master Landlord’s failure or refusal to consent to this First Amendment, unless such party by its willful act caused Master Landlord to refuse timely consent to this First Amendment.  No termination or cancellation of this First Amendment as provided in this Section 6(a) shall terminate or cancel the Sublease.  Upon any such termination or cancellation of this First Amendment, the Sublease shall remain in full force and effect unmodified by this First Amendment.
b.    This First Amendment is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions. This First Amendment may be amended only by an agreement in writing, signed by the parties hereto.
c.    This First Amendment is binding upon and shall inure to the benefit of the parties hereto, their respective agents, employees, representatives, officers, directors, divisions, subsidiaries, affiliates, assigns, heirs, successors in interest and shareholders.
d.    This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.  The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this First Amendment attached thereto.
e.    Except as amended and/or modified by this First Amendment, the Sublease is hereby ratified and confirmed and all other terms of the Sublease shall remain in full force and effect, unaltered and unchanged by this First Amendment. In the event of any conflict between the provisions of this First Amendment and the provisions of the Sublease, the provisions of this First Amendment shall prevail. 
[Signatures are on the next page.]

	
			
	 
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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the Effective Date.
		
	SUBLANDLORD: 
	EXELIXIS, INC., 
a Delaware corporation

By: /s/ Frank Karbe    

Name: Frank Karbe     

Title: EVP & CFO    

		
	SUBTENANT:
	THRESHOLD PHARMACEUTICALS, INC., 
a Delaware corporation

By: /s/ Harold E. Selick, Ph.D.    

Name: Harold E. Selick, Ph.D.     

Title: Chief Executive Officer    

	
			
	 
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EXHIBIT A
MAP OF SUBLEASED PREMISES

	
			
	 
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	2EXEL 2015.06.30 Exhibit 10.5

Exhibit 10.5
FIRST AMENDMENT TO CONSENT TO SUBLEASE AGREEMENT
THIS FIRST AMENDMENT TO CONSENT TO SUBLEASE AGREEMENT (this "First Amendment") is made as of October 1, 2013, by and among BRITANNIA POINTE GRAND LIMITED PARTNERSHIP, a Delaware limited partnership ("Landlord"), EXELIXIS INC., a Delaware corporation ("Tenant"), and THRESHOLD PHARMACEUTICALS, INC., a Delaware corporation ("Subtenant").
R E C I T A L S
A.    Reference is hereby made to that certain Build-to-Suit Lease dated as of May 12, 1999, between Landlord and Tenant (the "Original Lease"), as amended by that certain First Amendment to Build-to-Suit Lease dated as of March 29, 2000 ("First Amendment"), that certain Second Amendment to Build-to-Suit Lease dated as of January 31, 2001 ("Second Amendment"), and that certain Third Amendment to Build-to-Suit Lease dated as of May 24, 2001 ("Third Amendment," together with the Original Lease, the First Amendment and the Second Amendment, collectively, the "Lease"), for certain buildings located at 169 Harbor Way and 170 Harbor Way (each, a "Building" and collectively, the "Premises"), in South San Francisco, California. 
B.    On August 19, 2011, Landlord (referenced as HCP Life Science REIT, Inc. in the Consent, which entity is Landlord's parent company), Tenant and Subtenant entered into that certain Consent to Sublease Agreement ("Consent"), whereby Landlord consented to the subletting by Subtenant of a portion of the Premises as described in that certain Sublease dated July 25, 2011 between Tenant, as sublandlord, and Subtenant, as subtenant (the "Sublease"). 
C.    Pursuant to Section 3 of the Consent and Article 13 of the Lease, Tenant has requested Landlord's consent to that certain First Amendment to Sublease dated on or about the date hereof, between Tenant and Subtenant (the "Sublease First Amendment"), with respect to a subletting by Subtenant of an additional 470 rentable square feet of space on the first floor of the Building located at 170 Harbor Way, as more particularly described in the Sublease First Amendment (the "Sublet Expansion Premises").  A copy of the Sublease First Amendment is attached hereto as Exhibit A.  Landlord is willing to consent to the Sublease First Amendment on the terms and conditions contained herein.
D.    All defined terms not otherwise expressly defined herein shall have the respective meanings given in the Lease.
A G R E E M E N T
1.    Landlord's Consent.  Landlord hereby consents to the Sublease First Amendment; provided, however, notwithstanding anything contained in the Sublease First Amendment to the contrary, such consent is granted by Landlord only upon the terms and conditions set forth in this First Amendment.  The Sublease First Amendment is subject and subordinate to the Lease.  Landlord shall not be bound by any of the terms, covenant, conditions, provisions or agreements of the Sublease First Amendment.  Subtenant acknowledges for the benefit of Landlord that Subtenant accepts the Sublet Expansion Premises in their presently existing, "as-is" condition and that Landlord has made no representation or warranty to Subtenant as to the compliance of the Sublet Expansion Premises with any law, statute, ordinance, rule or regulation.  Tenant and Subtenant hereby represent and warrant to Landlord that the copy of the Sublease First Amendment attached hereto is a full, complete and accurate copy of the Sublease First Amendment, and that there are no other documents or instruments relating to the use of the Sublet Expansion Premises by Subtenant other than the Sublease and the Sublease First Amendment.
2.    Reimbursement of Landlord.  Within five (5) days after invoice, Tenant shall reimburse Landlord all of Landlord's reasonable costs and expenses incurred in connection with its review and consent of the Sublease First Amendment and preparation and negotiation of this First Amendment.

3.    Incorporation of Terms of Consent.  The parties hereto acknowledge and agree that the terms set forth in Sections 3 and 4 (including Sections 4.1 through 4.8) of the Consent are incorporated herein and each time the word "Sublease" is used in such Sections, the same shall mean both the Sublease and this Sublease First Amendment.
4.    General Provisions.
4.1    Consideration for Sublease.  Tenant and Subtenant represent and warrant that there are no additional payments of rent or any other consideration of any type payable by Subtenant to Tenant with regard to the Sublet Expansion Premises other than as disclosed in the Sublease First Amendment.
4.2    Brokerage Commission.  Tenant and Subtenant covenant and agree that under no circumstances shall Landlord be liable for any brokerage commission or other charge or expense in connection with the Sublease and Tenant and Subtenant agree to protect, defend indemnify and hold Landlord harmless from and against the same and from any cost or expense (including, but not limited to, attorney's fees) incurred by Landlord in resisting any claim for any such brokerage commission.
4.3    Recapture.  This consent shall in no manner be construed as limiting Landlord's ability to exercise any rights to recapture any portion of the Premises, as set forth in the Lease, in the event of a proposed future sublease or assignment of such portion of the Premises.
4.4    Controlling Law.  The terms and provisions of this First Amendment shall be construed in accordance with and governed by the laws of the State of California.
4.5    Binding Effect.  This First Amendment shall be binding upon and inure to the benefit of the parties hereto, their heirs, successors and permitted assigns.  As used herein, the singular number includes the plural and the masculine gender includes the feminine and neuter.
4.6    Captions.  The paragraph captions utilized herein are in no way intended to interpret or limit the terms and conditions hereof; rather, they are intended for purposes of convenience only.
4.7    Partial Invalidity.  If any term, provision or condition contained in this First Amendment shall, to any extent, be invalid or unenforceable, the remainder of this First Amendment, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this First Amendment shall be valid and enforceable to the fullest extent permitted by law.
4.8    Attorneys' Fees.  If either party commences litigation against the other for the specific performance of this First Amendment, for damages for the breach hereof or otherwise for enforcement of any remedy hereunder, the parties hereto agree to and hereby do waive any right to a trial by jury and, in the event of any such commencement of litigation, the prevailing party  shall be entitled to recover from the other party such costs and reasonable attorneys' fees as may have been incurred.
4.9    Conflicts.  Notwithstanding anything in this First Amendment to the contrary, as between Tenant and Subtenant, (a) nothing in this First Amendment shall modify the terms and conditions of the Sublease First Amendment, and (b) in the event of any conflict between this First Amendment and the Sublease First Amendment, the Sublease First Amendment shall control.

IN WITNESS WHEREOF, the parties have executed this Consent to Sublease First Amendment as of the day and year first above written.
"Landlord"
BRITANNIA POINTE GRAND LIMITED PARTNERSHIP
                        
By:  HCP-Pointe Grand, Incorporated
        its general partner

By: /s/ Jonathan M. Bergschneider    

Its: Executive Vice President    

"Tenant"
EXELIXIS, INC., 
a Delaware corporation
By:  /s/ Frank Karbe    
Its: EVP & CFO    

"Subtenant"

THRESHOLD PHARMACEUTICALS, INC., 
a Delaware corporation
By:  /s/ Harold E. Selick, Ph.D.    
Its: Chief Executive Officer    

EXHIBIT A
THE SUBLEASE FIRST AMENDMENT
See Exhibit 10.4 to Form 10-Q filed August 11, 2015 

	
		
	 
	EXHIBIT A
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