Document:

orex-ex102_125.htm

 

Exhibit 10.2

FIFTH AMENDMENT TO LEASE

THIS FIFTH AMENDMENT TO LEASE ("Fifth Amendment") is made and entered into as of September 11, 2017, by and between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation, as successor-in-interest to Mullrock 3 Torrey Pines, LLC, a Delaware limited liability company ("Landlord") and OREXIGEN THERAPEUTICS, INC., a Delaware corporation ("Tenant").

R E C I T A L S:

WHEREAS, Landlord and Tenant entered into that certain Office Lease dated as of December 7, 2007 (the "Original Lease"), as amended by (i) that certain First Amendment to Lease dated as of September 23, 2008 by and between Landlord and Tenant ("First Amendment"), (ii) that certain Partial Lease Termination Agreement dated as of February 22, 2012 by and between Landlord and Tenant ("Agreement"), (iii) that certain Second Amendment to Lease dated as of February 15, 2013 by and between Landlord and Tenant ("Second Amendment"), (iv) that certain Third Amendment to Lease dated as of August 17, 2015 ("Third Amendment") and (v) that certain Fourth Amendment to Lease dated as of October 25, 2016 whereby Landlord leased to Tenant and Tenant leased from Landlord certain space located in two buildings (“Fourth Amendment”) located and addressed at 3344 ("3344 Building") and 3366 ("3366 Building") North Torrey Pines Court, La Jolla, California  (3344 Building and 3366 Building are hereinafter collectively referred to as the "Building").  The Original Lease, as modified by the First Amendment, Agreement, Second Amendment, Third Amendment, Fourth Amendment, and Fifth Amendment may be referred to herein as the "Lease"; and

 

WHEREAS, Mullrock 3 Torrey Pines, LLC, a Delaware limited liability company, transferred all title and possession to The Regents of the University of California, a California corporation, successor in interest by a Grant Deed recorded on May 18, 2016; and

 

WHEREAS, The Regents of the University of California, a California corporation, assumed all obligations under the Lease (hereinafter known as “Landlord”), and Tenant agrees to attorn to Landlord.  Landlord warrants that Tenant is current with its obligation to pay rent under the terms of the Lease; and

WHEREAS, by this Fifth Amendment, Landlord and Tenant desire to extend the Term of the Lease and to otherwise modify the Lease as provided herein; and

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree that the Lease is amended as follows:

			
	
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A G R E E M E N T:

1.The Existing Premises.  Landlord and Tenant hereby agree that pursuant to the Lease, Landlord currently leases to Tenant and Tenant currently leases from Landlord 29,935 rentable and 27,524 usable square feet (consisting of 9,628 rentable and 8,584 usable square feet of space on the first (1st) floor of the 3344 Building [Suite 100] and 12,601 rentable and 11,234 usable square feet of space on the second (2nd) floor of the 3344 Building [Suite 200] and 7,706 rentable and 6,499 usable square feet on the third (3rd) floor of the 3366 Building [Suites 301, 310, 320 and 322]) (collectively, the "Premises"), as more particularly described in the Lease.

2.Extended Term.  The Lease Expiration Date shall be extended such that the Lease shall terminate on February 29, 2020 ("Extended Expiration Date"). The period from March 1, 2018, through the Extended Expiration Date specified above, shall be referred to herein as the "Extended Term". 

3.Monthly Basic Rent.  During the Extended Term, Tenant shall pay, in accordance with the provisions of this Section 3, Monthly Basic Rent for the Premises as follows:

 

	
Months of Extended Term
	
 
	
Monthly Basic Rent
	
 
	
Monthly Basic Rent Per Rentable Square Foot

	
3/1/18 - 2/28/19 
	
 
	
$130,217.25
	
 
	
$4.35

	
3/1/19 – 2/29/20
	
 
	
$133,210.75
	
 
	
$4.45

4.Brokers.       Tenant represents and warrants to Landlord that it has not engaged any broker, finder or other person who would be entitled to any commission or fees in respect of the negotiation, execution or delivery of this Lease with the exception of Hughes Marino Inc., and shall indemnify and hold harmless Landlord against any loss, cost, liability or expense incurred by Landlord as a result of any claim asserted by any such broker, finder or other person, except Hughes Marino, Inc., on the basis of any arrangements or agreements made or alleged to have been made by or on behalf of Tenant.  The provisions of this paragraph shall not apply to brokers with whom Landlord has an express written brokerage agreement.

 

5.CASP INSPECTION.   The Real Property (excluding tenant suites or employee only areas) has undergone an inspection by a Certified Access Specialist (CASp), and it was determined that the Real Property (excluding tenant suites or employee only areas) did not meet all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq.  To the best of Landlord’s knowledge, there have been no modifications or alterations completed or commenced between the date of the inspection and the Effective Date which have impacted the Premises’ compliance with construction-related accessibility standards.  Landlord has provided, at least forty-eight (48) hours prior to execution of this Fifth Amendment, a copy of such CASp report to Tenant.   

 

	
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Because a disability access inspection certificate, as described in subdivision (e) of Section 55.53 of the California Civil Code, was not issued for the Premises, Tenant is advised of the following (pursuant to Section 1938 of the California Civil Code):

 

“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”

 

Accordingly, the parties hereby agree that Tenant shall have the right, but not the obligation, to have a CASp inspect the Premises and determine whether the Premises complies with all of the applicable construction-related accessibility standards under state law.  If it is determined that the Premises do not meet all applicable construction-related accessibility standards, then Tenant shall promptly make, as soon as reasonably possible, but subject to Section 10 hereof, any repairs necessary to correct violations of construction-related accessibility standards identified by such inspection, at Tenant’s sole cost and expense.   

6.Signing Authority.  Each individual executing this Fifth Amendment on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in the State of California and that Tenant has full right and authority to execute and deliver this Fifth Amendment and that each person signing on behalf of Tenant is authorized to do so.

7.Counterparts.  This Fifth Amendment to Lease may be executed in one or more counterparts, each of which shall constitute an original and all of which shall be one and the same agreement.

 

BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK

	
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8.No Further Modification.  Except as set forth in this Fifth Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Fifth Amendment to Lease on the date first written above.

 

	
LANDLORD:

	
 
	
 

	
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation

	
 
	
 

	
By:
	
/s/ Jeff W. Graham
	
 

	
 
	
Jeff W. Graham
	
 

	
 
	
Executive Director, Real Estate
	
 

	
 
	
 
	
 

	
Date:
	
9/11/2017
	
 

 

	
TENANT:

	
 

	
OREXIGEN THERAPEUTICS, INC., a Delaware corporation

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Michael A. Narachi
	
 
	
By:
	
/s/ Jason A. Keyes

	
 
	
 
	
 
	
 
	
 

	
Print Name:
	
Michael A. Narachi
	
 
	
Print Name:
	
Jason A. Keyes

	
 
	
 
	
 
	
 
	
 

	
Title:
	
President & CEO
	
 
	
Title:
	
SVP & CFO

	
 
	
 
	
 
	
 
	
 

	
Date:
	
8/31/2017
	
 
	
Date:
	
8/31/2017

 

	
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-4-orex-ex103_130.htm

Exhibit 10.3

Orexigen Therapeutics, Inc.  

 

[______________], 2017

 

[NAME]

 

RE:Retention Agreement

Dear [Name], 

You are an important part of Orexigen Therapeutics, Inc. (the “Company”), and we recognize that your engagement and commitment are critical to the Company’s success.  We value the contributions you make to our organization and are pleased to offer you the following Retention Agreement (the “Retention Agreement”).  Certain capitalized terms used in this Retention Agreement are defined in Section V below.  

I.Eligibility to Earn a Retention Payment

 

As an incentive for you to continue to contribute your efforts and services to the Company, you will be eligible to earn a retention payment, based on the terms and conditions in Section II below, in an amount equal to fifty-percent (50%) of your 2018 annual target bonus amount (the “Retention Payment”).  For illustration purposes only, if your 2018 annual target bonus amount is ten-percent (10%) of your 2018 annual base salary, then your retention payment amount, if earned, will equal five-percent (5%) of your 2018 annual base salary.  

 

II.How to Earn the Retention Payment

 

In order to earn the Retention Payment: (A) you must sign, date and return this Retention Agreement to the Company on or before November 3, 2017, (B) you must remain employed by the Company on a full-time basis in Good Performance Standing through and including July 31, 2018 (the “Retention Date”); and (C) the Company must achieve greater than a ten-percent (10%) increase in global net sales in the first calendar quarter of 2018 as compared to the global net sales in the first calendar quarter of 2017 (the “Performance Metric”).  The Compensation Committee of the Company’s Board of Directors (the “Committee”) shall have full and final authority, which shall be exercised in its reasonable discretion, to determine conclusively whether the Performance Metric has been achieved.  Any such determination shall be made by the Committee following the close of the first calendar quarter of 2018. 

 

If earned, the Retention Payment will be paid to you in a lump sum amount, less required payroll withholdings and deductions, on the first administratively practicable payroll period following the Retention Date; provided that any such earned Retention Payment will be paid to you in all cases before March 15, 2019.  

 

III.Employment Termination

 

Notwithstanding the foregoing, if (A) the Committee has determined that the Performance Metric has been achieved, and (B) following such Committee determination, and prior to the Retention Date, the Company terminates your employment without Cause (other than due to your death or disability), you will be eligible for the Retention Payment.  In order to earn the Retention Payment in connection with your employment termination, you must execute and deliver a general release of all known and unknown claims in a release agreement acceptable to the Company (the “Release”) within the applicable deadline set forth in the Release, but in no event later than forty-five (45) calendar days following your employment termination date, and permit the Release to become effective and irrevocable in accordance with its terms.  If earned, the Retention Payment will be paid to you in a lump sum amount, less required payroll withholdings and deductions, on the first administratively practicable payroll pay date following the effective date of the Release, subject to the requirements of Section VI below.

 

For the avoidance of doubt, if (W) you provide notice of your employment resignation, or actually terminate your employment relationship by resignation at any time (for any reason, including retirement), (X) the Company terminates your employment for Cause at any time, (Y) the Company terminates your employment without Cause at any time before the Committee has determined that the Performance Metric has been achieved; or (Z) your employment is terminated due to your death or disability at any time, then you will not be eligible for and will not earn the Retention Payment (or any portion thereof).  

 

IV.Change of Control

 

Additionally, notwithstanding the foregoing, if (A) the Company consummates a Change in Control (“CIC”) prior to March 31, 2018 and you remain an employee in Good Performance Standing through the consummation of the CIC, or (B) (i) the Company consummates a CIC after March 31, 2018 but before the Retention Date, (ii) prior to the consummation of the CIC, the Committee determined that the Performance Metric has been achieved, and (iii) you remain an employee in Good Performance Standing through the consummation of the CIC, you will be eligible for the Retention Payment.  In order to earn the Retention Payment in connection with a CIC event described above, you must execute and deliver a general release of all known and unknown claims in a release agreement acceptable to the Company (the “Release”) within the applicable deadline set forth in the Release, but in no event later than forty-five (45) calendar days following the consummation of the CIC, and permit the Release to become effective and irrevocable in accordance with its terms.  If earned, the Retention Payment will be paid to you in a lump sum amount, less required payroll withholdings and deductions, on the first administratively practicable payroll pay date following the effective date of the Release, subject to the requirements of Section VI below.   

 

V.Definitions

 

(A)  Cause.  For purposes of this Retention Agreement, “Cause” shall have the meaning described in the Company’s 2007 Equity Plan, as amended and restated as of July 8, 2016 (the “Equity Plan”).

 

(B)  Change in Control.  For purposes of this Retention Agreement, “Change in Control” shall have the meaning described in the Equity Plan.

(C)  Good Performance Standing.  For purposes of this Retention Agreement, you will be in “Good Performance Standing” if you are in active employment status, satisfactorily performing all assigned tasks, and complying with the Company’s policies and procedures as determined in the reasonable discretion of the Company.

 

VI.IRS Code Section 409A

 

It is intended that the Retention Payment payable under this Retention Agreement satisfies, to the greatest extent possible, the exemption from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) provided under Treasury Regulations Section 1.409A-1(b)(4) and in all cases will be paid not later than March 15 of the year following the year in which your right to such amount became vested.  To the extent that the Retention Payment is deferred compensation under Section 409A of the Code, and is not otherwise exempt from the application of Section 409A, then, if the period during which you may consider and sign the Release spans two (2) calendar years, the payment of such Retention Payment will not be made until the later calendar year.

 

VII.Miscellaneous

 

This Retention Agreement is intended to provide a financial incentive to you and is not intended to confer any rights to continued employment upon you.  Nothing in this Retention Agreement is intended to alter your at-will employment relationship.  

 

This Retention Agreement is the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to the Retention Payment, and it supersedes and replaces any other agreements (whether written or unwritten) you may have with the Company concerning these matters.  This Retention Agreement is entered into without reliance on any promise or representation (written or unwritten) other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  The terms of this Retention Agreement may not be modified or amended except in a written agreement signed by you and a duly authorized officer of the Company. 

[Signature Page to Follow]

Sincerely,

 

Michael A. Narachi

President and Chief Executive Officer

 

ACKNOWLEDGMENT AND ACCEPTANCE

 

	
Accepted and Agreed:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Date:
	
 
	
 

	
[Name]

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