Document:

exv10w20

 

Exhibit 10.20

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (“First Amendment”) is entered into as of March 12, 2004 (the
“Effective Date”), by and between POINT RICHMOND R&D ASSOCIATES II, LLC, a California limited
liability company, successor-in-interest to Point Richmond R&D II, an LLC (“Landlord”), and
SANGAMO BIOSCIENCES, INC., a Delaware corporation (“Tenant”), with reference to the following
facts:

     A. Landlord and Tenant entered into that certain Triple Net Laboratory Lease dated May 23,
1997, together with an Addendum thereto dated May 28, 1997 (collectively, the “Original Lease”),
pursuant to which Landlord leased to Tenant certain premises consisting of approximately 9,770
square feet of rentable area (the “Premises”) in the building located at 501 Canal Boulevard, Point
Richmond, California (the “Building”). Thereafter, the Original Lease was amended by (i) the
letter agreement dated June 15, 1999 (the “June 15 Letter”), pursuant to which, among other things,
additional space in the Building consisting of approximately 5,009 square feet of rentable area was
added to the Premises and the term of the Original Lease was extended to August 31, 2004, (ii) the
letter dated April 21, 2000 (the “April 21 Letter”), pursuant to which, among other things, the
rentable area of the Premises was amended, and (iii) the letter agreement dated November 3, 2000
(the “November 3 Letter”), pursuant to which additional space in the Building consisting of
approximately 7,000 square feet of rentable area was added to the Premises (the Original Lease,
together with the June 15 Letter, the April 21 Letter and the November 3 Letter, are referred to
collectively herein as the “Lease”).

     B. The Lease by its terms is scheduled to expire on August 31, 2004, and the parties desire to
extend the term of the Lease and amend the Lease in certain other respects, all on the following
terms and conditions.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:

     1. Incorporation
of Recitals and Defined Terms. Recitals A and B above are hereby
incorporated herein. Capitalized terms which are not otherwise defined in this First Amendment
shall have the meanings set forth in the Lease.

     2. Confirmation
of Premises; Percentage Share. Landlord and Tenant hereby confirm
that, as of the Effective Date (a) the Premises contain approximately 21,860 square feet of
rentable area and consist of Suites A, A-2 and B in the Building, as shown on Exhibit A
attached hereto; and (b) the percentage to be used by the parties for purposes of calculating
Tenant’s Pro Rata Share of Operating Expenses is 26.77%.

     3. Condition
of Premises; Parking. As of the Effective Date, Tenant is in possession
of the Premises and, provided that there is no material change in the condition of the Premises
between the Effective Date and the commencement of the Extended Term
(defined below) (i.e., there
has been no material damage or destruction to the Premises), Tenant agrees to accept the Premises
as of the commencement of the Extended Term in their “as is” condition. During the

 

 

Extended Term, Tenant shall continue to have the use of 76 unreserved off-street parking spaces,
at no cost to Tenant.

     4. Extension
of Term.

          (a) Extended
Term. The term of the Lease is hereby extended for a period of 120
months and shall expire on August 31, 2014 (the “Extended Expiration Date”), unless sooner
terminated or extended in accordance with the terms of the Lease (as amended hereby). That
portion of the term of the Lease commencing as of September 1, 2004 and ending on the Extended
Expiration Date shall be referred to herein as the “Extended Term.”

          (b) Accelerated
Expiration. Tenant shall have the one time right
(“Acceleration Option”) to accelerate the Extended Expiration Date to August 31, 2011 (the
“Accelerated Expiration Date”), with respect to the Premises only (specifically excluding any
Refusal Space leased by Tenant pursuant to Section 9 below), if (i) Tenant is not in default
under the Lease (beyond the expiration of all applicable cure and notice periods) as of the date
Tenant provides Landlord with Tenant’s notice of acceleration (the “Acceleration Notice”), and
(ii) Tenant delivers the Acceleration Notice no later than September 1, 2010. If Tenant exercises
the Acceleration Option, (A) Tenant shall remain liable for all Base Monthly Rent, Tenant’s Pro
Rata Share of Operating Expenses, and other sums accrued and due under the Lease up to and
including the Accelerated Expiration Date, even though billings for any such items may occur
subsequent to the Accelerated Expiration Date, and (B) Landlord shall remain liable for the
reconciliation of Operating Expenses for periods prior to the Accelerated Expiration Date in
accordance with the terms of Article 4 of the Lease and the prompt refund to Tenant of any excess
Operating Expenses paid by Tenant. Tenant shall not be required to pay an early
termination fee or penalty in connection with the Acceleration Option. As of the date Tenant
provides Landlord with a timely Acceleration Notice, any unexercised rights or options of
Tenant to extend the term of the Lease or to expand the Premises (whether pursuant to any
expansion options, rights of first or second refusal, rights of first or second offer, or
other similar rights), and any tenant improvement allowance not claimed by Tenant in
accordance with the Lease, as amended hereby, as of such date, shall immediately be deemed
terminated and no longer available or of any further force or effect.

     5. Base
Monthly Rent. The schedule of Base Monthly Rent payable with respect to the
Premises during the Extended Term is the following:

	 	 	 	 	 	 	 	 	 
	 	 	APPROXIMATE	 	 
	 	 	MONTHLY RATE	 	 
	 PERIOD	 	PER SQUARE FOOT	 	BASE MONTHLY RENT
	September 1, 2004 – August 31, 2005

	 	$	1.60	 	 	$	34,976.00	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2005 – August 31, 2006

	 	$	1.64	 	 	$	35,850.40	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2006 – August 31, 2007

	 	$	1.68	 	 	$	36,746.66	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2007 – August 31, 2008

	 	$	1.72	 	 	$	37,665.33	 

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	 	 	APPROXIMATE	 	 
	 	 	MONTHLY RATE	 	 
	 PERIOD	 	PER SQUARE FOOT	 	BASE MONTHLY RENT
	September 1, 2008 – August 31, 2009

	 	$	1.77	 	 	$	38,606.96	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2009 – August 31, 2010

	 	$	1.81	 	 	$	39,572.13	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2010 – August 31 , 2011

	 	$	1.86	 	 	$	40,561.44	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2011 – August 31, 2012

	 	$	1.90	 	 	$	41,575.47	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2012 – August 31, 2013

	 	$	1.95	 	 	$	42,614.86	 
	 
	 	 	 	 	 	 	 	 
	September 1, 2013 – August 31, 2014

	 	$	2.00	 	 	$	43,680.23	 

     6. Cap
on Tenant’s Pro Rata Share of Operating Expenses. During the Extended Term,
Tenant shall continue to pay Tenant’s Pro Rata Share of Operating Expenses in accordance with the
terms of the Lease; provided however, that during the Extended Term, Tenant’s Pro Rata Share of
Operating Expenses shall not increase by more than 5% per calendar year on a compounding and
cumulative basis throughout the Extended Term (e.g. Tenant’s Pro Rata Share of Operating Expenses
for 2005 shall not exceed 105% of Tenant’s Pro Rata Share of Operating Expenses for 2004; Tenant’s
Pro Rata Share of Operating Expenses for 2006 shall not exceed 105% of the maximum allowable amount
of Tenant’s Pro Rata Share of Operating Expenses permitted for 2005; etc.), By way of
illustration, if Tenant’s Pro Rata Share of Operating Expenses for 2004 are $0.60 per rentable
square foot per month, then Tenant’s Pro Rata Share of Operating Expenses for 2005 shall not exceed
$0.63 per rentable square foot per month, and Tenant’s Pro Rata Share of Operating Expenses for
2006 shall not exceed $0.6615 per rentable square foot per month. If Tenant exercises the
Extension Option(s) provided in Section 8 below, Tenant’s Pro Rata Share of Operating Expenses
during each Option Term (defined below) shall be subject to the foregoing 5% per annum cap, with
the cap on Tenant’s Pro Rata Share of Operating Expenses for the first calendar year during each
Option Term to be 5% in excess of the maximum allowable amount of Tenant’s Pro Rata Share of
Operating Expenses permitted for the calendar year immediately preceding the first calendar year of
the applicable Option Term; provided, however, Landlord shall have the right, by written notice
delivered to Tenant no later than sixty (60) days prior to the commencement date of the applicable
Option Term, to designate that the cap on Tenant’s Pro Rata Share of Operating Expenses for the
first calendar year during such Option Term shall instead be 5% in excess of the actual Tenant’s
Pro Rata Share of Operating Expenses for the calendar year immediately preceding the first calendar
year of such Option Term.

     7. Tenant
Improvement Allowance.

          (a) Landlord agrees to contribute the sum of $43,720.00 per year (collectively, the “Extended
Term Allowance”) for each year during the Extended Term
(i.e. each 12 month period from September 1
through August 31 during the Extended Term) toward Tenant’s cost of performing Alterations in the
Premises in accordance with the terms and conditions of Section 7.3 of the Lease (the “Extended
Term Alterations”). The first annual increment of the Extended Term Allowance shall be available
to Tenant, on and after September 1, 2004, and each subsequent annual increment of the Extended
Term Allowance shall be available to Tenant on and after each September 1 thereafter through
August 31, 2014.

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If Tenant does not submit a request for full payment of any annual increment of the Extended Term
Allowance to Landlord for any year in which such annual increment of the Extended Term Allowance
is available, such unused amount shall be added to the increment of the Extended Term Allowance
available to Tenant during the subsequent years. Any portion of the Extended Term Allowance that
is not claimed by Tenant prior to August 31, 2014, shall accrue to the sole benefit of Landlord,
and Tenant shall not be entitled to any credit, abatement or other concession in connection
therewith. The Extended Term Allowance may only be used for hard and/or soft costs in connection
with the Extended Term Alterations; and in no event shall the Extended Term Allowance be used for
the purchase of equipment, furniture or other items of personal property of Tenant. Tenant shall
be responsible for all elements of the design of Tenant’s plans for the Extended Term Alterations
(including, without limitation, compliance with law, functionality of design and the structural
integrity of the design), and Landlord’s approval of Tenant’s plans therefor shall in no event
relieve Tenant of the responsibility for such design.

          (b) The Extended Term Allowance shall be paid to Tenant or, at Landlord’s option, to the
order of the contractor that performed the applicable Extended Term Alterations, within thirty
(30) days following receipt by Landlord of receipted bills or invoices covering all labor and
materials expended and used in such Extended Term Alterations. Notwithstanding anything herein to
the contrary, Landlord shall not be obligated to disburse any portion of the Extended-Term
Allowance during the continuance of a default by Tenant under the Lease (beyond the expiration of
all applicable cure and notice periods), and Landlord’s obligation to disburse shall only resume
when and if such default is cured. Landlord and Tenant acknowledge that all Extended Term
Alterations shall, without compensation or credit to Tenant, become part of the Premises and the
property of Landlord at the time of their installation and shall remain in the Premises, unless,
at the time of Landlord’s consent to the applicable Extended Term Alterations, Landlord notified
Tenant in writing that Landlord would require removal of such Extended Term Alterations from the
Premises upon the expiration or earlier termination of the Lease. Landlord shall not be entitled
to receive (or deduct from the Extended Term Allowance) any construction management fee or
oversight fee in connection with any Extended Term Alterations, Notwithstanding the foregoing,
Landlord and Tenant agree that if the property management company (currently Wareham Property
Group) provides construction management or administrative services in connection with any Extended
Term Alterations, such property management company shall be entitled to a construction management
or administration fee in connection with any Extended Term Alterations in accordance with the
schedule contained on Exhibit D attached hereto.

     8. Extension
Options.

          (a) Landlord hereby grants Tenant options to extend the Extended Term (each, an “Extension
Option”) for two (2) additional periods of five (5) years each (each, an “Option Term”), commencing
immediately after the expiration of the Extended Term, in the case of the first Extension Option,
or the expiration of the first Option Term, in the case of the Second Extension Option. Each
Extension Option shall be upon the terms and conditions contained in the Lease (as amended hereby),
except that (1) the initial Base Monthly Rent for the Premises during each Option Term shall be
equal to 95% of the “fair market rent” for the Premises as of the commencement of the applicable
Option Term (i.e., the rate that a willing, comparable, new
(i.e., non-renewal), non-equity tenant
would pay, and that a willing landlord of

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comparable research and development laboratory space in Richmond, California would accept at arms’
length), determined in the manner set forth in subparagraph (b) below, and (2) Tenant shall not be
entitled to the Extended Term Allowance during the Option Terms. The fair market rent shall not
take into account any Alterations constructed by Tenant and paid for by Tenant without any
reimbursement from Landlord. Tenant“s election to exercise an
Extension Option (“Tenant’s Extension
Notice”) must be given to Landlord in writing not less than twelve (12) full calendar months prior
to the expiration of the then current term of the Lease. Notwithstanding anything to the contrary
contained herein, an Extension Option exercised by Tenant shall, at Landlord’s option, be null and
void and of no further force or effect if Tenant is in default under the Lease (beyond the
expiration of all applicable cure and notice periods) as of the date of Tenant’s Extension Notice
for such Extension Option.

          (b) If Tenant properly exercises an Extension Option, the initial Base Monthly Rent during the
applicable Option Term shall be determined in the following manner. Landlord shall advise Tenant in
writing of Landlord’s good faith, reasonable determination of the fair market rent (based on the
definition of fair market rental set forth above) for the Premises as of the commencement of the
applicable Option Term (“Landlord’s Fair Market Proposal”) no less than two hundred seventy (270)
days prior to the commencement of the applicable Option Term, provided Landlord’s notification to
Tenant of Landlord’s Fair Market Proposal shall specifically state that Tenant shall have one
hundred twenty (120) days after receipt of Landlord’s Fair Market Proposal within which to approve
or disapprove Landlord’s Fair Market Proposal. If Tenant does not disapprove in writing Landlord’s
Fair Market Proposal within one hundred ten (110) days after receipt of Landlord’s Fair Market
Proposal, Landlord shall provide Tenant written notice (“Second Notice”) that Tenant’s failure to
respond within a period of ten (10) days shall be deemed Tenant’s approval of Landlord’s Fair Market
Proposal. Tenant’s failure to respond within ten (10) days after Landlord’s delivery of the Second
Notice shall be deemed to be an approval of Landlord’s Fair Market Proposal and Landlord’s Fair
Market Proposal shall be final and binding upon the parties. In the event Tenant timely disapproves
in writing Landlord’s Fair Market Proposal, Landlord and Tenant shall attempt in good faith to
agree upon the fair market rent within thirty (30) days of Tenant’s notice of disapproval. If after
such thirty (30) day period, Landlord and Tenant have not agreed in writing as to the fair market
rent, the parties shall determine the fair market rent in accordance with the procedure set forth
below.

               (i) Within ten (10) days after the expiration of such thirty (30) day period, Tenant shall
notify Landlord of the name and address of the broker appointed to represent Tenant (“Tenant’s
Broker”). Tenant’s Broker shall be licensed in the State of California, engaged in the brokerage
business in the San Francisco-East Bay commercial real estate market for at least the immediately
preceding five (5) years, and familiar with the research and development laboratory market in
Richmond, California. Within thirty (30) days of the appointment of Tenant’s Broker’s, Tenant shall
advise Landlord in writing of Tenant’s Broker’s good faith, reasonable determination of the fair
market rent for the Premises as of the commencement of the applicable Option Term (“Tenant’s
Broker’s Fair Market Proposal”). Landlord shall have ten (10) days after receipt of Tenant’s
Broker’s Fair Market Proposal within which to approve or disapprove Tenant’s Broker’s Fair Market
Proposal. In the event Landlord disapproves in writing Tenant’s Broker’s Fair Market Proposal,
Landlord and Tenant shall attempt in good faith to agree upon the fair market rent within thirty
(30) days of Landlord’s notice of disapproval. If after such thirty (30) day period, Landlord and
Tenant have not agreed

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in writing as to the fair market rent, the parties shall determine the fair market rent in
accordance with the procedure set forth below.

               (ii) If Landlord and Tenant are unable to agree upon the fair market rent within such second
(2nd) thirty (30)-day period, Landlord and Tenant’s Broker shall, within ten (10) days
thereafter, appoint a third broker meeting the qualifications set forth above with the added
qualification that such third broker shall not have previously acted for either Landlord or
Tenant. Within thirty (30) days following the appointment of the third broker, the third broker
shall deliver his or her written determination of the fair market rent to Landlord and Tenant. If
the third broker’s determination of fair market rent falls between Landlord’s Fair Market Proposal
and Tenant’s Broker’s Fair Market Proposal, the third broker’s determination shall be deemed to be
the fair market rent for purposes of determining the initial Base Monthly Rent for the Premises
for the applicable Option Term. If the third broker’s determination falls outside of Landlord’s
Fair Market Proposal and Tenant’s Broker’s Fair Market Proposal, whichever of Landlord’s Fair
Market Proposal and Tenant’s Broker’s Fair Market Proposal most closely reflects the fair market
rent as determined by the third broker shall be deemed to be the fair market rent for purposes of
determining the initial Base Monthly Rent for the Premises for the applicable Option Term, and
such determination shall be binding on both Landlord and Tenant. Tenant shall pay all costs,
commissions and fees of Tenant’s Broker in connection with such determination of the fair market
rent. The costs and fees of the third broker shall be paid one-half by Landlord and one-half by
Tenant.

          (c) If the amount of the fair market rent has not been determined in accordance with this
Section 8 as of the commencement of the applicable Option Term, then Tenant shall continue to pay
the Base Monthly Rent in effect at the expiration of the Extended Term or the expiration of the
first Option Term, as applicable, until the amount of the fair market rent is determined. When
such determination is made, Tenant shall pay any deficiency to Landlord within thirty (30) days
after such determination or Landlord shall credit any overpayment by Tenant against Tenant’s next
accruing rent under the Lease, as appropriate.

          (d) The Base Monthly Rent payable hereunder during each Option Term shall be increased by two
percent (2%) on each anniversary of the commencement date of the applicable Option Term.

     9. Right of First Refusal.

          (a) Commencing on the Effective Date and continuing throughout the Extended Term (the “Right
of First Refusal Period”), Tenant shall have the right of first refusal (the “Right of First
Refusal”) to lease the space known as Suite C and Suite C-2, as shown on Exhibit B attached
hereto (each, a “Refusal Space”) as and when such Refusal Space becomes available to lease during
the Extended Term.

          (b) During the Right of First Refusal Period, prior to entering into a letter of intent with a
bona fide third party prospective tenant with respect to any Refusal Space, Landlord shall give
Tenant a written notice (“Offer Notice”), accompanied by the letter of intent for the applicable
Refusal Space which identifies the Refusal Space, the rental rate, parking terms, the term of the
lease, any tenant improvement allowances or improvements, alterations or other

6

 

monetary concessions to be provided by Landlord in connection with such prospective tenant, and
all other material terms with respect to the proposed lease of the Refusal Space (collectively,
the “Material Terms”). Tenant shall have a period of five (5) business days after Tenant’s receipt
of the Offer Notice in which to notify Landlord (“Response Notice”) whether Tenant desires to
lease such Refusal Space on the Material Terms.

          (c) If Tenant provides a Response Notice agreeing to lease the Refusal Space on the Material
Terms, Landlord shall prepare an amendment to the Lease (the “Expansion Amendment”) adding such
Refusal Space to the Premises on the Material Terms set forth in the Offer Notice. The Expansion
Amendment shall reflect changes in the Base Monthly Rent, rentable area of the Premises, Tenant’s
Pro Rata Share of Operating Expenses and other appropriate terms. A copy of the Expansion
Amendment shall be (i) sent to Tenant within ten (10) days after Landlord’s receipt of the Response
Notice, and (ii) executed by Landlord and Tenant within thirty (30) days after Tenant’s receipt of
same, but, upon Landlord’s receipt of a Response Notice, an otherwise valid exercise of Tenant’s
Right of First Refusal shall be fully effective whether or not the Expansion Amendment is executed.

          (d) Unless otherwise provided in the Offer Notice, and provided that there has been no
material change in the condition of the Refusal Space after the date
of the Response Notice (i.e.,
there has been no material damage or destruction to the Refusal Space), each Refusal Space
(including improvements and personalty, if any) shall be accepted by Tenant in its condition and
as-built configuration existing on the date the term for such Refusal Space commences.

          (e) The rights of Tenant under this Section 9 with respect to a particular Refusal Space shall
terminate, with respect to such Refusal Space only, if Landlord has delivered two (2) Offer Notices
for such Refusal Space and Tenant has failed to timely provide a Response Notice for each such
Offer Notice. In addition, the rights of Tenant under this Section 9 shall terminate upon Tenant’s
failure to cure a monetary default under the Lease after the expiration of applicable notice and
cure periods at any time during the thirty six (36) months immediately preceding the date Landlord
would have been obligated to provide Tenant an Offer Notice.

          (f) The Right of First Refusal granted herein is subject and subordinate to the expansion
rights (whether such rights are designated as a right of first offer, right of first refusal,
expansion option or otherwise) of other existing tenants of the Building with respect to the
Refusal Space that are reflected in such tenants’ leases as of the Effective Date, as such rights
are summarized on Exhibit C attached hereto.

     10. Deleted
Provisions. The rights of first refusal contained in Section 19.12.3 of
the Original Lease and Section 6 of the June 15 Letter, and the options to extend contained in
Section 3.1 of the Original Lease and the November 3 Letter are hereby deleted in their entireties
and of no further force or effect.

     11. Real
Estate Fee. Within ten (10) business days after the mutual execution and
delivery of this First Amendment, Landlord shall pay CB Richard Ellis, Inc. a fee in connection
with this First Amendment in the amount of $87,440.00. Landlord shall indemnify, defend and hold
Tenant harmless from and against any and all claims for the $87,440.00 fee payable to CB

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Richard Ellis, Inc. described above, and any and all claims by any other real estate broker,
salesperson or finder claiming to have represented Landlord for a commission, finder’s fee or
other compensation in connection with this First Amendment. Tenant shall indemnify, defend and
hold Landlord harmless from and against any and all claims, other than the $87,440.00 fee
payable to CB Richard Ellis, Inc. described above, by any real estate broker, salesperson or
finder claiming to have represented Tenant for a commission, finder’s fee or other compensation
in connection with this First Amendment. Notwithstanding anything to the contrary contained in
this Section 11, Tenant shall be solely responsible for any commission, fees or costs payable
to any real estate broker, sales person or finder claiming to have represented Tenant in
connection with any future amendment to the Lease or Tenant’s exercise of the Extension Options
or Right of First Refusal contained herein.

     12. Notices. Section 19.2 of the Lease is hereby amended to provide that Tenant’s
address for notices under the Lease is as follows:

Sangamo BioSciences, Inc.

501 Canal Boulevard, Suite A100

Richmond, California 94804

Attn: Mr. Greg Zante

                 Senior Director, Finance and Administration

     13. Authority. This First Amendment shall be binding upon and inure to the benefit
of the parties, their respective heirs, legal representatives, successors and assigns. Each
party hereto and the persons signing below warrant that the person signing below on such party’s
behalf is authorized to do so and to bind such party to the terms of this First Amendment.

     14. Status
of Lease. Except as amended hereby, the Lease is unchanged, and, as
amended hereby, the Lease remains in full force and effect.

     IN WITNESS WHEREOF, Landlord and Tenant have entered into this First Amendment as of the
date first set forth above.

	 	 	 	 	 	 	 	 	 
	TENANT:

	 	 	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	SANGAMO BIOSCIENCES, INC.,

a Delaware-corporation	 	 	 	POINT RICHMOND R&D ASSOCIATES II, LLC,

a California limited liability company
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Edward O. Lanphier II
	 	 	 	By:
	 	/s/ Richard K. Robbins
	

	 	 
	 	 	 	 	 	 
	Print Name:

	 	Edward O. Lanphier II
	 	 	 	Print Name:
	 	Richard K. Robbins
	Its:

	 	President + CEO
	 	 	 	Its:
	 	Managing Member

8<PAGE>

                                                                    EXHIBIT 10.1

                            THIRD AMENDMENT AGREEMENT
                          TO CREDIT FACILITY AGREEMENT

THIS THIRD AMENDMENT AGREEMENT is dated for reference the 31st of December 2004,

AMONG:

            MFC MERCHANT BANK S.A., a bank organized under the laws of
            Switzerland (hereinafter, the "LENDER")

AND:

            MYMETICS CORPORATION, a corporation organized under the laws of the
            State of Delaware (hereinafter, the "BORROWER")

AND:

            MFC BANCORP LTD., a corporation organized under the laws of the
            Yukon Territory (hereinafter, the "GUARANTOR")

WHEREAS:

A. The Lender agreed to make the Credit Facility available to the Borrower
pursuant to and in accordance with the terms of an amended and restated credit
facility agreement dated for reference the 28th day of February, 2003 among the
Lender, the Borrower and the Guarantor (the "FEBRUARY 28, 2003 AGREEMENT");

B. The Lender, the Borrower and the Guarantor agreed to amend the February 28,
2003 Agreement pursuant to and in accordance with the terms of an amendment
agreement dated for reference July 9, 2003, to provide for: (i) the extension of
the Maturity Date of the Credit Facility to December 15, 2003; and (ii) an
increase in the principal amount of the Credit Facility; and

C. The Lender, the Borrower and the Guarantor agreed to amend the February 28,
2003 Agreement pursuant to and in accordance with the terms of an amendment
agreement dated for reference July 30, 2003, to provide for: (i) an increase in
the principal amount of the Credit Facility; and (ii) conversion of the Credit
Facility from a term credit facility maturing on December 15, 2003 to a demand
credit facility; and

D. The Lender, the Borrower and the Guarantor have agreed to further amend the
February 28, 2003 Agreement to: (i) provide for an increase in the principal
amount of the Credit Facility; and (ii) convert the Credit Facility from a
demand credit facility to a credit facility maturing December 31st, 2005, all on
the terms and conditions set out herein (the February 28, 2003 Agreement, as
amended by the July 9, 2003 and July 30, 2003 amendment agreement and hereby, is
referred to as the "CREDIT AGREEMENT"),

<PAGE>

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT, in consideration of the premises
and the covenants contained herein the parties hereto agree as follows:

1. DEFINED TERMS. Terms used as defined terms herein and not otherwise defined
have the meanings given to them in the Credit Agreement.

2. CREDIT FACILITY MATURING DECEMBER 31ST, 2005 AND INCREASE OF PRINCIPAL
AMOUNT.

      (a) Section 2.1 of the Credit Agreement is deleted in its entirety and
replaced with the following:

      "SECTION 2.1. CREDIT FACILITY. The Lender shall make available to the
Borrower, in accordance with, and subject to the terms and conditions of, this
Agreement, a credit facility in the principal amount of up to Euro 3,700,000
(the "CREDIT FACILITY") and made available to the Borrower by way of Advances in
accordance with Section 2.2 hereof."

      (b) Section 2.2 of the Credit Agreement is amended by replacing the
reference in the second line thereof to "Maturity Date" with "Payment Date (as
defined below)".

3. PAYMENTS. Section 3.1 of the Credit Agreement is deleted in its entirety and
replaced with the following:

      "SECTION 3.1. PAYMENTS. 1st, repayment shall be on March 31st, 2005, the
borrower shall repay Euro 200'000. -- Should the progress of the Registration
statement be delayed, the repayment can be postponed to the 2nd Repayment date.
2nd, repayment of Euro 300'000. -- shall be on June 30th, 2005. 3rd repayment of
Euro 400'000. -- shall be on September 30th, 2005. Final repayment of the
remaining open balance shall occur on December 31st, 2005 (the "Payment Date").
On the Payment Date, the Borrower shall pay to the Lender all amounts
outstanding under the Credit Facility, including all principal, Interest and
other Obligations accruing due thereunder.

4. CONTINUED PERFECTION AND FURTHER SECURITY. The Borrower and the Guarantor
covenant and agree to take such actions and execute and deliver to the Lender
such further agreements, conveyances, deeds and other documents and instruments
as the Lender shall reasonably request for the purpose of establishing,
perfecting, preserving and protecting the Security and any additional security
given to the Lender to secure the obligations of the Borrower and the Guarantor
under the Credit Agreement, including, without limitation, the additional
security and amended Security Documents contemplated by Section 4.1 of the
Credit Agreement, in each case forthwith upon request therefor by the Lender and
in form and substance reasonably satisfactory to the Lender.

                                       2
<PAGE>

5. CONDITIONS PRECEDENT TO AMENDMENT. The Lender shall have no obligation to
amend the Credit Agreement by this Agreement unless the Lender has received:

   (a) this Agreement duly executed by the Borrower and the Guarantor; and

   (b) a copy of the authorizing resolutions of the board of directors of each
       of the Borrower and the Guarantor, authorizing the execution and
       delivery of this Agreement, together with any replacements,
       confirmations, amendments, supplements, extensions or renewals to or
       of the Security as may be required by the Lender, all in form and
       content satisfactory to the Lender and its counsel.

6. FULL FORCE AND EFFECT. All of the other provisions of the Credit Agreement
shall continue in full force and effect and shall not be modified hereby.

7. GOVERNING LAW. This Agreement shall be construed, performed and enforced in
accordance with, and governed by, the internal laws of Switzerland, without
giving effect to the principles of conflict of law thereof.

8. CONSENT TO JURISDICTION. (1) Each of the parties hereto hereby irrevocably
attorns to the non-exclusive jurisdiction of the Courts of Herisau (Switzerland)
in any action or proceeding arising to this Agreement and, in modification of
its Section 9.8., the Credit Agreement. The Borrower agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by Law.

   (2) Nothing in this Section 9 shall affect the right of the Lender to serve
legal process in any other manner permitted by Law or affect the right of the
Lender to bring any action or proceeding against the Borrower or its property in
the courts of other jurisdictions.

9. ENGLISH VERSION. The parties hereby represent, warrant, acknowledge and agree
that: (i) they have agreed that this Agreement be drawn up in the English
language; and (ii) the English version of this Agreement shall govern for all
purposes.

10. SEVERABILITY. If one or more provisions of this Agreement is or becomes
invalid or unenforceable in whole or in part in any jurisdiction, the validity
of the remaining provisions of this Agreement shall not be affected. The parties
hereto undertake to replace any such invalid provision without delay with a
valid provision which as nearly as possible duplicates the economic intent of
the invalid provision.

11. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors, heirs,
executors, administrators, legal representatives and assigns.

12. COUNTERPARTS. This Agreement may be executed in counterparts, each of which
will be an original and all of which will constitute the same document.

                                        3
<PAGE>

13. FACSIMILE. The parties hereto agree that this Agreement may be transmitted
by facsimile or such similar device and that the reproduction of signatures by
facsimile or such similar device will be treated as binding as if originals and
each party hereto undertakes to provide each and every other party hereto with a
copy of this Agreement bearing original signatures forthwith upon demand.

THE LENDER:                              THE GUARANTOR:

MFC MERCHANT BANK S.A.                   MFC BANCORP LTD.

Per: /s/ Peter Hediger                   Per: /s/ Michael Smith
     ------------------------                 ------------------------
         Authorized Signatory                     Authorized Signatory

                                         Per: /s/ M.Y. Ho
                                              -------------------------
Per: /s/ Michael Hattenschwiler                   Authorized Signatory
     -------------------------
         Authorized Signatory

THE BORROWER:

MYMETICS CORPORATION

Per: /s/ Christian Rochet
     ------------------------
         Authorized Signatory

Per: /s/ Ernest Lubke
     ------------------------
         Authorized Signatory

                                        4

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