Document:

License Agreement, dated December 27,2002

 Exhibit 10.26 
  
 EXCLUSIVE LICENSE AGREEMENT 
  

between 
  
 THE REGENTS OF THE UNIVERSITY OF CALIFORNIA 
  
 and 
  
 RENOVIS, INC. 
  
 for 
  
 METHOD OF TREATING PAIN USING NALBUPHINE AND OPIOID ANTAGONISTS

  
 UC Case No. 2000-002 
  

	[*]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

 UC Case No. SF2000-002 
  
 EXCLUSIVE LICENSE AGREEMENT 
  
 for 
  
 METHOD OF TREATING PAIN USING NALBUPHINE AND OPIOID ANTAGONISTS 
  
 This license agreement (the “Agreement”) is made and entered into effective as of December 27, 2002 (the “Effective Date”) by and
between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation having its statewide administrative offices at 1111 Franklin Street, Oakland, California 94607-5200, (“The Regents”), and acting through its Office of Technology
Management, University of California San Francisco, 185 Berry Street, Suite 4603, San Francisco, CA 94107 (“UCSF”), and RENOVIS, INC., a Delaware corporation having a principal place of business at 270 Littlefield Avenue, South San
Francisco, CA 94080 (the “Licensee”). 
  
 BACKGROUND 

 
 A. Certain inventions, generally characterized as “Method of
Treating Pain Using Nalbuphine and Opioid Antagonists” (collectively the “Invention”), were made in the course of research at the University of California San Francisco by Jon D. Levine (the “Inventors”) and are covered by
Regents’ Patent Rights as defined below; 
  
 B. The
development of the Invention was sponsored in part by the National Institutes of Health and as a consequence this license is subject to overriding obligations to the Federal Government under 35 U.S.C. §§200-212 and applicable regulations;

  
 C. The Licensee and The Regents have executed a Letter of
Intent (U.C. Control No. 2001-30-0027) effective February 1, 2001 for the purpose of negotiating a license to Regents’ Patent Rights; 
  
 D. The Licensee wishes to obtain an exclusive license under The Regents’ Patent Rights from The Regents for the commercial research, development,
manufacture, use and sale of 

 
products from the Invention, and The Regents is willing to grant those exclusive rights so that the Invention may be developed to its fullest and the
benefits enjoyed by the general public; and 
  
 E. The Licensee is
a “small business firm” as defined in 15 U.S.C. §632; 
  
 F. Licensee recognizes and agrees that royalties due under this Agreement will be paid on both pending patent applications and issued patents; 
  
 In view of the foregoing, the parties agree: 
  

	1.	DEFINITIONS 

  
 1.1 “Regents’ Patent Rights” means any subject matter claimed in or covered by any of the following: Abandoned U.S. Patent Application Serial No. 60/210,367 entitled “Action of Naloxone on
Gender-dependent Analgesic and Anti-analgesic Effects of Nalbuphine in Humans” filed June 9, 2000 and assigned to The Regents, and pending U.S. Patent Application Serial No. 09/877,669 entitled “Method of Treating Pain Using Nalbuphine and
Opioid Antagonists” filed June 8, 2001 and assigned to The Regents, and, (to the extent legally able to do so and subject to The Regents’ obligations to any providers of third-party materials or funding), any other patent application,
solely to the extent of The Regents’ interest therein, teaching the analgesic uses of kappa opioid agonists and opioid antagonists developed in the laboratory of Jon D. Levine at UCSF and naming Jon D. Levine as a sole or joint inventor and
subsequently filed by or on behalf of The Regents within two years of the Effective Date of this Agreement); and continuing applications thereof including divisions and substitutions and continuation-in-part applications (to the extent the claims
thereof are enabled by and supported by the written description in the disclosure in the parent application); any patents issuing on said applications including reissues, reexaminations and extensions thereof; and any corresponding foreign
applications or patents. 
  
 1.2 “Licensed Product” means any product
(a) that is covered by or claimed in Regents’ Patent Rights, (b) that is produced by the Licensed Method, or (c) the manufacture or use of which is covered by or claimed in Regents’ Patent Rights. 
  
 1.3 “Licensed Method” means any method that is covered by or claimed in
Regents’ Patent Rights. 

 1.4 “Net Sales” means the total of the gross invoice prices of Licensed Products sold or Licensed Methods
performed by the Licensee, an Affiliate, or a sublicensee, less the sum of the following actual deductions where applicable: cash, trade, or quantity discounts, retroactive price reductions or rebates actually granted to customers of Licensed
Products, and charge-back payments and rebased granted to managed health care organizations or to federal, state and local governments (or their respective agencies, purchasers or reimbursers); sales, use, tariff, import/export duties or other
excise taxes imposed on particular sales or services, but excluding value added taxes other than Deductible Value Added Taxes and taxes assessed on income derived from such sales; transportation charges and allowances; or credits to customers
because of recalls, rejections or returns. “Deductible Value Added Tax” means value added tax to the extent such value added tax is actually incurred by the Licensee, an Affiliate, or sublicensee, and is not reimbursable, refundable or
creditable to such party. For purposes of calculating Net Sales, transfers to an Affiliate or sublicensee for end use by the Affiliate or sublicensee will be treated as sales at list price. 
  
 1.5 “Affiliate” means any corporation or other business entity in which the
Licensee owns or controls, directly or indirectly, at least fifty percent (50%) of the outstanding stock or other voting rights entitled to elect directors, or in which the Licensee is owned or controlled directly or indirectly by at least fifty
percent (50%) of the outstanding stock or other voting rights entitled to elect directors; but in any country where the local law does not permit foreign equity participation of at least fifty percent (50%), then an “Affiliate” includes
any company in which the Licensee owns or controls or is owned or controlled by, directly or indirectly, the maximum percentage of outstanding stock or voting rights permitted by local law. 
  
 1.6 “Field of Use” means all human and animal therapeutic and prophylactic
applications and uses. 
  

	2.	LIFE OF PATENT EXCLUSIVE GRANT 

  
 2.1 Subject to the limitations set forth in this Agreement, The Regents grants to the Licensee a world-wide license under Regents’ Patent Rights to practice the
inventions in the Regents’ Patent Rights and to make, have made, use, sell, offer to sell and import Licensed Products and to practice Licensed Methods. 

 2.2 Except as otherwise provided in this Agreement, the license granted in Paragraph 2.1 is exclusive for the life of the
Agreement. 
  
 2.3 The license granted in Paragraphs 2.1 and 2.2 is subject to all
the applicable provisions of any license to the United States Government executed by The Regents and is subject to the overriding obligations to the U.S. Government under 35 U.S.C. §§200-212 and applicable governmental implementing
regulations. 
  
 2.4 The license granted in Paragraphs 2.1 and 2.2 are limited to
methods and products that are within the Field of Use. For other methods and products (if any), the Licensee has no license under this Agreement. 
  
 2.5 The Regents reserves the right to use the Invention and associated technology for educational and academic research purposes. 
  

	3.	SUBLICENSES 

  
 3.1 The Regents also grants to the Licensee the right to issue sublicenses to third parties under the rights granted in Section 2.1, as long as the Licensee has current exclusive rights thereto under this Agreement.
To the extent applicable, sublicenses must include, at a minimum, all of the rights of and obligations due to The Regents (and, if applicable, the United States Government) contained in this Agreement. 
  
 3.2 The Licensee shall promptly provide The Regents with a copy of each sublicense issued,
provided that Licensee may redact from such copy technical information that does not relate to the Regents’ Patent Rights, and economic terms that do not relate to consideration paid for, or other financial obligations relating to, the
grant of the sublicense under the Regents’ Patent Rights ; collect and guarantee payment of all payments due The Regents from sublicensees; and summarize and deliver all reports due The Regents from sublicensees. 
  
 3.3 Upon termination of this Agreement for any reason, The Regents, at its sole discretion,
shall determine whether the Licensee shall cancel or assign to The Regents any and all sublicenses. 
  

	4.	PAYMENT TERMS 

  
 4.1 Paragraphs 1.1, 1.2, and 1.3 define Regents’ Patent Rights, Licensed Products and Licensed Methods so that royalties are payable on products and methods covered by both pending patent 

 
applications and issued patents. Royalties will accrue in each country for the duration of Regents’ Patent Rights in that country and are payable to The
Regents when Licensed Products and/or Licensed Methods are invoiced, or if not invoiced, when delivered to a third party. 
  
 4.2 Licensee shall pay earned royalties quarterly on or before February 28, May 31, August 31 and November 30 of each calendar year. Each payment will be for earned
royalties accrued within the Licensee’s most recently completed calendar quarter. 
  
 4.3 All monies due The Regents are payable in United States dollars. When Licensed Products and/or Licensed Methods are sold for monies other than United States dollars, the Licensee shall first determine the earned royalty in the currency
of the country in which Licensed Products and/or Licensed Methods were sold and then convert the amount into equivalent United States funds, using the exchange rate quoted in the Wall Street Journal on the last business day of the reporting period.

  
 4.4 Royalties earned on sales occurring in any country outside the United
States may not be reduced by any taxes, fees, or other charges imposed by the government of such country on the payment of royalty income. The Licensee is also responsible for all bank transfer charges. Notwithstanding this, all payments made by the
Licensee in fulfillment of The Regents’ tax liability in any particular country (such as by withholding taxes) will be credited against earned royalties or fees due The Regents for that country. 
  
 4.5 If at any time legal restrictions prevent the prompt remittance of royalties by the
Licensee from any country where a Licensed Product and/or Licensed Method is sold, the Licensee shall convert the amount owed to The Regents into United States funds and shall pay The Regents directly from its U.S. source of funds for as long as the
legal restrictions apply. 
  
 4.6 If any patent or patent claim within
Regents’ Patent Rights is held invalid in a final decision by a court of competent jurisdiction and last resort and from which no further appeal can be taken, all obligation to pay royalties based on that patent or claim or any claim patentably
indistinct therefrom will cease as of the date of final decision. The Licensee will not, however, be relieved from paying any royalties that accrued before the final decision or that are based on another patent or claim not involved in the final
decision. 

 4.7 No royalties may be collected or paid on Licensed Products and/or Licensed Methods sold to the account of the U.S.
Government, any agency thereof, state or domestic municipal government as provided for in the License to the Government. 
  
 4.8 If payments, rebillings or fees are not received by The Regents when due, the Licensee shall pay to The Regents interest charges on the above at a rate of ten percent
(10%) per annum. Interest is calculated from the date due until actually received by The Regents. 
  

	5.	LICENSE-ISSUE FEE 

  
 5.1 The Licensee shall pay to The Regents a license-issue fee in the total amount of [*], which amount shall be paid in three (3) equal installments of [*] each, the first installment to be paid within twenty (20)
days after the Effective Date, and the remaining two installments paid on each of the first two anniversaries of the Effective Date. This fee is non-refundable, non-cancelable, and is not an advance against royalties. 
  

	6.	EARNED ROYALTIES 

  
 6.1 The Licensee shall also pay to The Regents an earned royalty equal to a percentage of the Net Sales of Licensed Products and/or Licensed Methods, with the percentage royalty rate determined according to the
following schedule, based upon the level of annual Net Sales of Licensed Products and Licensed Methods worldwide: 
  

	 Annual Net Sales

	  	Royalty Rate

	 Up to $250 million
	  	[*]
	 $250 million to $500 million
	  	[*]
	 Above $500 million
	  	[*]

  
 6.2 With respect to royalties owed to
The Regents due to sales of Licensed Products and/or Licensed Methods by a sublicensee, if the amount of royalties payable to Licensee by such sublicensee based on sublicensee’s Net Sales is less than [*] of Net Sales, then The Regents agree to
negotiate in good faith a reduction of the royalty rate applicable to such sublicensee’s Net Sales, which reduction shall be commercially reasonable and based on the amount of value added by Licensee to such Licensed Product and/or Licensed
Method (including without 

 
limitation preclinical and clinical trial work conducted or funded by Licensee with respect thereto). 
  
 6.3 If Licensee is obligated to pay a third party royalties, based on a license under such
third party’s patent rights, for the manufacture, use, import or sale of a particular Licensed Product or particular Licensed Method, then Licensee shall have the right to credit an amount equal to [*] of the aggregate royalty amounts paid to
the unaffiliated third parties against the royalties owing to The Regents under Section 6.1 above with respect to sales of such Licensed Product or Licensed Method; provided that the credit for any given year does not reduce the royalties owing to
The Regents by more than [*]. 
  
 6.4 Royalty obligations under this Article 6, as
to a particular Licensed Product or Licensed Method, shall expire, on a country-by-country basis, upon the later of: (i) the date of expiration of the last to expire issued patent included in the Regents’ Patent Rights that claims the Licensed
Product or Licensed Method (as applicable) in the particular country, or (ii) ten years after first commercial sale of such Licensed Product or Licensed Method in such country. 
  

	7.	SUBLICENSE REVENUES 

  
 7.1 Licensee shall pay to The Regents royalties based on Net Sales of its sublicensees, as described above in Article 6. In addition, Licensee shall pay to The Regents a percentage (the “Sublicense
Percentage”) of all nonroyalty compensation received by Licensee or its Affiliates (except as otherwise provided below) for the grant of a sublicense under the Regents’ Patent Rights (“Sublicense Revenues”), which percentage
depends on the time of development of the applicable Licensed Product and/or Licensed Method at the time of grant of the sublicense as set forth in the following table: 
  
 [*] 

 However, the above obligation to pay The Regents a share of amounts received from sublicensees shall not apply to any
amounts received as support for research and development activities, as a loan, for the purchase of an equity interest in Licensee, as reimbursement for patent costs, as royalty payments, or as consideration for the grant of rights to intellectual
property and/or materials that are not claimed by the Regents’ Patent Rights. 
  
 7.2 Licensee shall pay to The Regents the applicable share of Sublicensee Revenues within thirty (30) days of receipt of the particular Sublicensee Revenues. 
  

	8.	MILESTONE PAYMENTS 

  
 8.1 With respect to development of Licensed Products and/or Licensed Methods by Licensee or its Affiliate, Licensee shall pay The Regents milestone payments for the first Licensed Product and/or Licensed Method to
achieve the following milestone events for each separate and distinct Medical Indication (as defined below) that such Licensed Product or such Licensed Method is being developed for: 
  

	 Milestone Event

	  	Payment

	 First filing of IND
 First Phase III Trial
 First filing of NDA
 Regulatory Approval
	  	 [*]
 [*]
 [*]
 [*]

  
 A distinct “Medical
Indication” shall mean a particular disease or condition that is recognized in the Merck Manual of Diagnosis and Therapy as a distinct disease or condition for which a drug therapy can be developed and prescribed as a labeled indication, which
disease or condition is different and distinct from any other Medical Indication for which a Licensed Product or Licensed Method is, at the particular time, being clinically developed or marketed. For clarity, 

 
Licensee shall pay the above milestone payments only once as to any particular milestone event for a particular Medical Indication. 
  
 8.2 If Licensee is obligated to pay milestone payments to a third party based on a license
agreement granting Licensee rights to such third party’s intellectual property that covers the Licensed Product and/or Licensed Methods or their manufacture, sale, or use, then the foregoing milestone payments shall be [*] of the amount of such
third party payments, subject to a [*] of the milestone amount set forth above. 
  
 8.3 In addition, Licensee shall pay The Regents a one-time milestone payment of [*] upon Licensee, its Affiliates and/or sublicensees first achieving cumulative gross sales of Licensed Products and/or Licensed Methods in the total amount of
[*]. 
  
 8.4 Milestone payments shall be paid by Licensee within thirty (30) days
of achieving the particular event for which the payment is owed. 
  

	9.	DUE DILIGENCE 

  
 9.1 Commencing on execution of this Agreement, Licensee shall diligently proceed (itself or its Affiliates or sublicensees) with the development of Licensed Products and/or Licensed Methods with the goal of achieving
regulatory approval for marketing thereof as soon as practicable, using commercially reasonable efforts. Upon achieving such approval, Licensee (or its Affiliate or sublicensee) shall use diligent efforts to manufacture and sell such approved
License Product and/or Licensed Method and shall earnestly and diligently endeavor to market the same in quantities sufficient to meet market demands. Licensee will be entitled to exercise prudent and reasonable business judgment in meeting its due
diligence obligations hereunder. 
  
 9.2 The Licensee shall endeavor, using
commercially reasonable efforts, to obtain all necessary governmental approvals for the manufacture, use and sale of Licensed Products and/or Licensed Methods. 
  

9.3 Subject to Section 9.6, the Licensee shall: 
  
 9.3.1 submit an IND covering Licensed Products to the United States FDA within [*] from the Effective Date of this Agreement; 
  
 9.3.2 obtain regulatory approval to market a Licensed Product within [*]
from the Effective Date of this Agreement; and 

 9.3.3 market Licensed Products in the United States within [*] of receiving regulatory approval of such
Licensed Product from the FDA. 
  
 9.4 If the Licensee is unable timely to perform
any of the above provisions (as such time deadlines may be extended as provided in Section 9.5 below), then The Regents has the right and option to either [*] or [*] the Licensee’s [*] license to a [*] license. This right, if exercised by The
Regents, supersedes the rights granted in Article 2 (GRANT). 
  
 9.5 If Licensee
is unable to meet any of its due diligence obligations set forth in Section 9.3 within the specified time, then Licensee will have the right and option to extend the target date of any such due diligence obligation for a period of [*] upon the
payment of [*] within thirty (30) days of the extension date for each such extension option exercised by Licensee. Licensee may further extend the target date of any diligence obligation for an additional [*] upon payment of an additional [*]. Both
[*] extensions will automatically apply unless Licensee notifies The Regents in writing prior to the target date that Licensee does not elect to take the extension. Additional extensions may be granted only by mutual written agreement of the parties
to this Agreement. 
  
 9.6 Licensee shall be deemed to meet the applicable
milestones in Section 9.3 above if Licensee (and/or its Affiliate or sublicensee) spends not less than [*] per year during the first three (3) years of this Agreement for the development of one or more Licensed Products and/or Licensed Methods, and
during the following five (5) years of this Agreement, an amount that averages out to be (when measured at any particular time during such five (5) year period) spending at a rate at such time that equals at least [*] per year up until such time,
for the development and/or marketing of one or more Licensed Products and/or Licensed Methods , provided that the foregoing shall terminate upon filing of an NDA or foreign equivalent application covering a Licensed Product or Licensed Method.

  

	10.	PROGRESS AND ROYALTY REPORTS 

  
 10.1 Beginning August 31, 2003 and semi-annually thereafter, the Licensee shall submit to The Regents a progress report covering the Licensee’s (and any
Affiliate’s or sublicensee’s) activities related to the development and testing of all Licensed Products and/or Licensed Methods and the obtaining of the governmental approvals necessary for marketing. Progress reports are required 

 
for each Licensed Product and Licensed Method until the first commercial sale of that Licensed Product or that Licensed Method occurs in the United States
and shall be again required if commercial sales of such Licensed Product or Licensed Method are suspended or discontinued. 
  
 10.2 Progress reports submitted under Paragraph 10.1 shall include, but are not limited to, the following topics: 
  

	 	–	summary of work completed 

  

	 	–	key scientific discoveries 

  

	 	–	summary of work in progress 

  

	 	–	current schedule of anticipated events or milestones 

  

	 	–	market plans for introduction of Licensed Products and/or Licensed Methods, and 

  

	 	–	a summary of resources [*] spent in the reporting period. 

  
 10.3 The Licensee has a continuing responsibility to keep The Regents informed of the large/small business entity status (as defined by the United States Patent and
Trademark Office) of itself and its sublicensees and Affiliates. 
  
 10.4 The
Licensee shall report to The Regents the date of first commercial sale of a Licensed Product and/or Licensed Method in each country in its immediately subsequent progress and royalty report. 
  
 10.5 After the first commercial sale of a Licensed Product and/or Licensed Method anywhere in
the world, the Licensee shall make quarterly royalty reports to The Regents on or before each February 28, May 31, August 31 and November 30 of each year. Each royalty report will cover the Licensee’s most recently completed calendar quarter
and will show (a) the gross sales and Net Sales of Licensed Products and/or Licensed Methods sold during the most recently completed calendar quarter; (b) the number of each type of Licensed Product and/or Licensed Method sold; (c) the royalties, in
U.S. dollars, payable with respect to sales of Licensed Products and/or Licensed Methods; (d) the method used to calculate the royalty; and (e) the exchange rates used. 
  
 10.6 If no sales of Licensed Products and/or Licensed Methods have been made during any reporting period, a statement to this effect is
required. 

	11.	BOOKS AND RECORDS 

  
 11.1 The Licensee shall keep accurate books and records showing all Licensed Products and/or Licensed Methods manufactured, used, and/or sold under the terms of this Agreement. Books and records must be preserved for
at least three (3) years from the date of the royalty payment to which they pertain. 
  
 11.2 Such books and records shall be made available by Licensee for inspection by an independent auditor with a national auditing firm engaged by The Regents and reasonably acceptable to Licensee, solely to confirm the royalty payments and
other payments made hereunder. Such auditor shall not disclose Licensee’s Confidential Information, except to the extent such disclosure is necessary to verify the portion of the amount of royalties and payments due under this Agreement. Such
audits may be exercised once a year, within three (3) years after the period to which such records relate, upon at least 30 days written notice to Licensee and during normal business hours. The Regents shall bear the fees and expenses of such
examination, unless the audit reveals an underpayment of royalties of more than five percent (5%) of the total royalties due for the period examined, in which case the Licensee shall bear the fees and expenses of that examination. 
  

	12.	LIFE OF THE AGREEMENT 

  
 12.1 Unless otherwise terminated by operation of law or by acts of the parties in accordance with the terms of this Agreement, this Agreement will be in force from the Effective Date until the last-to-expire patent
licensed under this Agreement; or until the last patent application licensed under this Agreement is abandoned and no patent in Regents’ Patent Rights ever issues. 
  
 12.2 Any termination of this Agreement will not affect the rights and obligations set forth in the following Articles: 
  

	 Article 11
 Article 15
 Article 16
 Article 21
 Article 24
 Article 30
	  	 Books and Records
 Disposition of Licensed Products on Hand on Termination
 Use of Names and Trademarks
 Indemnification
 Failure to Perform
 Secrecy

	13.	TERMINATION BY THE REGENTS 

  
 13.1 In addition to the termination provision of Section 9.4 herein, if the Licensee fails to perform or violates any material term of this Agreement, then The Regents may give written notice of default (Notice of
Default) to the Licensee. If the Licensee fails to repair the default within sixty (60) days of the effective date of Notice of Default, The Regents may terminate this Agreement and its licenses by a second written notice (Notice of Termination). If
a Notice of Termination is sent to the Licensee, this Agreement will automatically terminate on the effective date of that notice. Termination will not relieve the Licensee of its obligation to pay any fees owing at the time of termination and will
not impair any accrued right of The Regents. These notices are subject to Article 22 (Notices). 
  

	14.	TERMINATION BY LICENSEE 

  
 14.1 The Licensee has the right at any time to terminate this Agreement in whole or as to any portion of Regents’ Patent Rights by giving notice in writing to The Regents. Notice of termination will be subject to
Article 22 (Notices) and termination of this Agreement will be effective sixty (60) days from the effective date of notice. 
  
 14.2 Any termination under the above paragraph does not relieve the Licensee of any obligation or liability accrued under this Agreement prior to termination or rescind
any payment made to The Regents or anything done by Licensee prior to the time termination becomes effective. Termination does not affect in any manner any rights of The Regents arising under this Agreement prior to termination. 
  

	15.	DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION 

  
 15.1 Upon termination of this Agreement, the Licensee and its Affiliates are entitled to dispose of all previously made or partially made Licensed Products, but no more,
within a period of one hundred and twenty (120) days provided that the sale of those Licensed Products is subject to the terms of this Agreement, including but not limited to the rendering of reports and payment of royalties required under this
Agreement. 

	16.	USE OF NAMES AND TRADEMARKS 

  
 16.1 Nothing contained in this Agreement confers any right to use in advertising, publicity, or other promotional activities any name, trade name, trademark, or other designation of either party hereto (including
contraction, abbreviation or simulation of any of the foregoing). Unless required by law, the use by the Licensee of the name “The Regents of the University of California” or the name of any campus of the University of California is
prohibited. 
  

	17.	LIMITED WARRANTY 

  
 17.1 The Regents warrants to the Licensee that it has the lawful right to grant this license. 
  
 17.2 This license and the associated Invention are provided WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESS OR
IMPLIED. THE REGENTS MAKES NO REPRESENTATION OR WARRANTY THAT THE LICENSED PRODUCTS OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT. 
  

17.3 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE
USE OF THE INVENTION OR LICENSED PRODUCTS OR LICENSED METHODS OR ANY OTHER CLAIM ARISING UNDER THIS AGREEMENT, EXCEPT THAT LICENSEE SHALL BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE
USE OF THE INVENTION OR LICENSED PRODUCTS OR LICENSED METHODS OR ANY OTHER CLAIM ARISING UNDER THIS AGREEMENT WHEN LICENSEE MUST INDEMNIFY, HOLD HARMLESS, AND DEFEND THE REGENTS UNDER ARTICLE 21 (INDEMNIFICATION). 
  
 17.4 This Agreement does not: 
  
 17.4.1 express or imply a warranty or representation as to the validity or scope of any of Regents’ Patent Rights;

  
 17.4.2 express or imply a warranty or representation that
anything made, used, sold, offered for sale or imported or otherwise disposed of under any license granted in this Agreement is or will be free from infringement of patents of third parties; 

 17.4.3 obligate The Regents to bring or prosecute actions or suits against third parties for patent
infringement except as provided in Article 20; 
  
 17.4.4 confer
by implication, estoppel or otherwise any license or rights under any patents of The Regents other than Regents’ Patent Rights as defined in this Agreement, regardless of whether those patents are dominant or subordinate to Regent’s Patent
Rights; or 
  
 17.4.5 obligate The Regents to furnish any
know-how not provided in Regents’ Patent Rights. 
  

	18.	PATENT PROSECUTION AND MAINTENANCE 

  
 18.1 As long as the Licensee has paid patent costs as provided for in this Article, The Regents shall diligently endeavor to prosecute and maintain the United States and
foreign patents and patent applications comprising Regents’ Patent Rights using counsel of its choice reasonably acceptable to Licensee, and The Regents shall provide the Licensee, at a reasonable time in advance of any filing or correspondence
with relevant patent offices or agencies, with copies of all relevant documentation and communications so that the Licensee may be informed of the continuing prosecution and shall have the opportunity to comment thereon. The Regents agrees to use
diligent efforts to accommodate all of Licensee’s reasonable comments on such prosecution efforts. Licensee agrees to keep this documentation confidential. The Regents’ counsel will take instructions only from The Regents, and all patents
and patent applications under this Agreement will be assigned solely to The Regents. 
  
 18.2 The Regents shall use all reasonable efforts to amend any patent application to include claims reasonably requested by the Licensee to protect the products contemplated to be sold under this Agreement. 
  
 18.3 The Licensee shall apply for an extension of the term of any patent included within
Regents’ Patent Rights if appropriate under the Drug Price Competition and Patent Term Restoration Act of 1984 and/or European, Japanese and other foreign counterparts of this Law. The Licensee shall prepare all documents, and The Regents
agrees to execute the documents and to take additional action as the Licensee reasonably requests in connection therewith. 
  
 18.4 The Licensee shall bear [*] costs of preparing, filing, prosecuting and maintaining all United States and foreign patent applications contemplated by this Agreement.
Costs billed by 

 
The Regents’ counsel will be rebilled to the Licensee and are due within thirty (30) days of rebilling by The Regents. These costs include patent
prosecution costs for the Invention incurred by The Regents prior to the execution of this Agreement and [*] patent prosecution costs that may be incurred for patentability opinions, re-examination, re-issue, interferences, or inventorship
determinations. Licensee has paid to date [*] prior costs and expenses for such prosecution efforts that have been invoiced to Licensee prior to             , 2002, and Licensee
shall pay within thirty (30) days of execution of this Agreement [*] additional costs and expenses for such efforts that have been invoiced to Licensee as of the Effective Date. For the avoidance of doubt, Licensee will continue to pay costs and
expenses for prosecution efforts as they are invoiced to Licensee. 
  
 18.5 The
Licensee may request The Regents to obtain patent protection on the Invention in foreign countries if available and if it so desires. The Licensee shall notify The Regents of its decision to obtain or maintain foreign patents not less than sixty
(60) days prior to the deadline for any payment, filing, or action to be taken in connection therewith. This notice concerning foreign filing must be in writing, must identify the countries desired, and must reaffirm the Licensee’s obligation
to underwrite the costs thereof. The absence of such a notice from the Licensee to The Regents will be considered an election not to obtain or maintain foreign rights. 
  
 18.6 The Licensee’s obligation to [*] and to pay patent prosecution costs will continue for so long as this Agreement remains in
effect, but the Licensee may terminate its obligations with respect to any given patent application or patent upon thirty (30) days written notice to The Regents. The Regents will use its best efforts to curtail patent costs when a notice of
termination is received from the Licensee. The Regents may prosecute and maintain such application(s) or patent(s) at its sole discretion and expense, but the Licensee will have no further right or licenses thereunder. Non-payment of patent costs
may be deemed by The Regents as an election by the Licensee not to maintain application(s) or patent(s). 
  
 18.7 The Regents may file, prosecute or maintain patent applications at its own expense in any country in which the Licensee has not elected to file, prosecute, or maintain patent applications in accordance with this
Article, and those applications and resultant patents will not be subject to this Agreement. If The Regents elect not to file, prosecute or maintain any particular patent application or patent within the Regents’ Patent Rights in any country in
which the Licensee has 

 
elected to file, prosecute, or maintain such patent applications in accordance with this Article, to the extent legally able to do so, then The Regents shall
provide Licensee the right at its expense to undertake such filing, prosecution and maintenance in the name of The Regents, and The Regents shall cooperate in all reasonable manners to assist such efforts (at no expense to The Regents). 

 

	19.	PATENT MARKING 

  
 19.1 The Licensee, its Affiliates, and sublicensees shall mark all Licensed Products and/or Licensed Methods made, used or sold under the terms of this Agreement, or their containers, to the extent required by the
applicable patent marking laws. 
  

	20.	PATENT INFRINGEMENT 

  
 20.1 In the event that The Regents (to the extent of the actual knowledge of the licensing professional responsible for the administration of this Agreement) or the Licensee learns of infringement of potential
commercial significance of any patent licensed under this Agreement, the knowledgeable party will provide the other (i) with written notice of such infringement and (ii) with any evidence of such infringement available to it (the “Infringement
Notice”). During the period in which, and in the jurisdiction where, the Licensee has exclusive rights under this Agreement, neither The Regents nor the Licensee will notify a third party (including the infringer) of infringement or put such
third party on notice of the existence of any Patent Rights without first obtaining consent of the other, provided that Licensee shall have the right to notify such third party to the extent that Licensee has, under Section 20.2, the right to
initiate suit against such third party for infringement. The Regents shall have the right to terminate this Agreement immediately without the obligation to provide 60 days’ notice as set forth in Paragraph 13.1 if the Licensee notifies a third
party of infringement or puts such third party on notice of the existence of any Regents’ Patent Rights with respect to such infringement to the extent Licensee is required to first obtain the written consent of The Regents, as set forth above.
Both The Regents and the Licensee will use their diligent efforts to cooperate with each other to terminate such infringement without litigation. 

 20.2 If infringing activity of potential commercial significance by the infringer has not been abated within ninety (90)
days following the date the Infringement Notice takes effect, the Licensee may institute suit for patent infringement against the infringer. The Regents may voluntarily join such suit at its own expense, but may not thereafter commence suit against
the infringer for the acts of infringement that are the subject of the Licensee’s suit or any judgment rendered in that suit. The Licensee may not join The Regents as a party to a suit initiated by the Licensee without The Regents’ prior
written consent. If, in a suit initiated by the Licensee, The Regents is involuntarily joined other than by the Licensee, the Licensee will pay any costs incurred by The Regents arising out of such suit, including but not limited to, any legal fees
of counsel that The Regents selects and retains to represent it in the suit. 
  
 20.3 If, within a hundred and twenty (120) days following the date the Infringement Notice takes effect, infringing activity of potential commercial significance by the infringer has not been abated and if the Licensee has not brought suit
against the infringer, The Regents may institute suit for patent infringement against the infringer. If The Regents institutes such suit, the Licensee may not join such suit without The Regents’ consent and may not thereafter commence suit
against the infringer for the acts of infringement that are the subject of The Regents’ suit or any judgment rendered in that suit. 
  
 20.4 Any recovery or settlement received in connection with any suit will first be shared by The Regents and the Licensee equally to cover the litigation costs each
incurred, and next shall be paid to The Regents or the Licensee to cover any litigation costs it incurred in excess of the litigation costs of the other. In any suit initiated by the Licensee, any recovery in excess of litigation costs will be
shared between the Licensee and The Regents as follows: (a) for any such recovery by Licensee based on claims made by Licensee funded by Licensee in litigation to which The Regents is not a party, other than amounts paid for willful infringement,
such recovery shall be deemed Net Sales for which Licensee shall pay the Regents royalties pursuant to Section 6.1; (b) for any such recovery by Licensee based on claims made by Licensee funded by Licensee in litigation to which The Regents is a
party other than amounts paid for willful infringement, such recovery shall be [*] to The Licensee and [*] to The Regents, (c) for any such recovery by Licensee based on claims made by Licensee and The Regents funded by Licensee and The Regents in
litigation to which The Regents is a party, other than amounts paid to willful 

 
infringement, such recovery shall be shared according to actual litigation costs and expenses borne by the parties, with a minimum share to The Regents of
[*] regardless of a lesser percentage of costs and expenses borne by The Regents, and (d) for any recovery for willful infringement The Regents shall receive [*] of the recovery. In any suit initiated by The Regents, any recovery in excess of
litigation costs will belong to The Regents. The Regents and the Licensee agree to be bound by all determinations of patent infringement, validity, and enforceability (but no other issue) resolved by any adjudicated judgment in a suit brought in
compliance with this Article 20. 
  
 20.5 Any agreement made by the Licensee for
purposes of settling litigation or other dispute shall comply with all of the requirements regarding sublicensing specified in this Agreement, including but not limited to Articles 3, 7, 8, 9, and 10. 
  
 20.6 Each party will cooperate with the other in litigation proceedings instituted hereunder
but at the expense of the party who initiated the suit (unless such suit is being jointly prosecuted by the parties). 
  
 20.7 Any litigation proceedings will be controlled by the party bringing the suit, except that The Regents may be represented by counsel of its choice in any suit brought
by the Licensee. 
  

	21.	INDEMNIFICATION 

  
 21.1 The Licensee shall indemnify, hold harmless and defend The Regents, its officers, employees, and agents; the sponsors of the research that led to the Invention; and the inventors of the patents and patent
applications in Regents’ Patent Rights and their employers against any and all third party claims, suits, losses, liabilities, damages, costs, fees, and expenses resulting from or arising out of exercise of this license or any sublicense. This
indemnification includes, but is not limited to, any product liability. 
  
 21.2
The Licensee, at its sole cost and expense, shall insure its activities in connection with the work under this Agreement and obtain, keep in force and maintain insurance as follows, or an equivalent program of self insurance: 
  
 21.3 Comprehensive or commercial form general liability insurance (contractual liability
included) with limits as follows: 
  

	 	–	Each Occurrence [*] 

	 	–	Products/Completed Operations Aggregate [*] 

  

	 	–	Personal and Advertising Injury [*] 

  

	 	–	General Aggregate (commercial form only) [*] 

  
 The coverage and limits referred to under the above do not in any way limit the liability of the Licensee. The Licensee shall furnish The Regents with
certificates of insurance showing compliance with all requirements. Certificates must: 
  

	 	–	Provide for thirty (30) days’ advance written notice to The Regents of any modification. 

  

	 	–	Indicate that The Regents has been endorsed as an additional Insured under the coverage referred to under the above. 

  

	 	–	Include a provision that the coverage will be primary and will not participate with nor will be excess over any valid and collectable insurance or program of self-insurance carried
or maintained by The Regents. 

  
 21.4 The Regents shall notify the
Licensee in writing of any claim or suit brought against The Regents in respect of which The Regents intends to invoke the provisions of this Article. The Licensee shall keep The Regents informed on a current basis of its defense of any claims under
this Article. 
  

	22.	NOTICES 

  
 22.1 Any notice or payment required to be given to either party is properly given and effective (a) on the date of delivery if delivered in person or (b) five (5) days after mailing if mailed by first-class certified
mail, postage paid, to the respective addresses given below, or to another address as is designated by written notice given to the other party. 
  

	In the case of the Licensee:	  	 Renovis, Inc.
 270 Littlefield Avenue
 South San Francisco, CA 94080
 Attention: President

		
	 With a copy to:
	  	 Cooley Godward LLP
 Five Palo Alto Square
 3000 El Camino Real
 Palo Alto, CA 94306
 Attn: Barclay James Kamb, Esq.

		
	 In the case of The Regents:
	  	 Office of Technology Management
 University of California San Francisco
 185 Berry Street, Suite 4603
 San Francisco, CA 94107
 Attention: Director
 Referring to: UCSF Case No. SF-2000-002

	
	 In the case of The Regents, for accounting and payment purposes:

	 	  	 Office of Technology Transfer
 Attn.: Accounts Receivable (UCSF Case No. 2000-002)
 University of California
 Office of the President
 1111 Franklin Street, 7th Floor
 Oakland, CA 94607-5200

  

	23.	ASSIGNABILITY 

  
 23.1 This Agreement may be assigned by The Regents, but is personal to the Licensee and assignable by the Licensee only with the written consent of The Regents, which consent will not be unreasonably withheld;
provided, however, that Licensee may assign this Agreement without such consent to its successor in interest pursuant to a merger, acquisition, sale of all or substantially all of its assets to which this Agreement relates or similar
transaction. 
  

	24.	FAILURE TO PERFORM 

  
 24.1 If either party finds it necessary to undertake legal action against the other on account of failure of performance due under this Agreement, then the prevailing party is entitled to reasonable attorney’s
fees in addition to costs and necessary disbursements. 
  

	25.	NO WAIVER 

  
 25.1 No waiver by either party of any default of this Agreement may be deemed a waiver of any subsequent or similar default. 
  

	26.	GOVERNING LAWS 

  
 26.1 THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, but the scope and 

 
validity of any patent or patent application will be governed by the applicable laws of the country of the patent or patent application. 
  

	27.	PREFERENCE FOR UNITED STATES INDUSTRY 

  
 27.1 Because this Agreement grants the exclusive right to use or sell the Invention in the United States, the Licensee agrees that any products sold in the U.S. embodying
this Invention or produced through the use thereof will be manufactured substantially in the United States, unless a waiver from the foregoing requirement is obtained as permitted under applicable law or regulation. The Regents agree that, if
requested by Licensee, The Regents will use reasonable and good faith efforts to seek a waiver or exception from the foregoing requirement, on reasonable showing of need therefore by Licensee. 
  

	28.	GOVERNMENT APPROVAL OR REGISTRATION 

  
 28.1 Licensee shall notify The Regents if it becomes aware that this Agreement is subject to any U.S. or foreign government reporting or approval requirement. Licensee
shall make all necessary filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting or approval process. 
  

	29.	EXPORT CONTROL LAWS 

  
 29.1 The Licensee and its Affiliates shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and/or Licensed Methods and related technical data to foreign
countries, including, without limitation, the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. 

	30.	SECRECY 

  
 30.1 With regard to confidential information received by Licensee from The Regents regarding the Invention and identified by The Regents as “confidential” on disclosure to Licensee, or confidential
information of Licensee disclosed to The Regents and identified as “confidential” on disclosure to The Regents (in each case, the “Confidential Information” of the disclosing party), the receiving Party agrees, subject to Section
29.2: 
  
 30.1.1 not to use the Confidential Information of the
disclosing Party for any purpose except for the sole purpose of performing under the terms of this Agreement; 
  
 30.1.2 to safeguard such Confidential Information against disclosure to others with the same degree of care as it exercises with its own data of a similar
nature; 
  
 30.1.3 not to disclose such Confidential Information
to others (except to its employees, agents, consultants or sublicensees who are bound to the Party by a like obligation of confidentiality) without the express written permission of the disclosing Party. 
  
 Further, the Parties agree that, subject to the exceptions provided in Section 29.2 below,
all information communicated by a party (or its counsel) to the other party hereunder regarding prosecution of the patent applications in the Regents’ Patent rights shall be deemed to be “Confidential Information” of the disclosing
party, and that the failure on the part of that party or its counsel to mark as “Confidential” any communication between such party and its counsel, shared under attorney-client privilege, shall not negate the confidential nature of such
correspondence or the receiving Party’s obligation to treat such information as “Confidential Information” if and from the time that such is disclosed to receiving Party. 
  
 30.2 The obligations under Section 29.1 shall not apply to any Confidential Information of a disclosing Party if the receiving Party can
demonstrate by competent evidence that such Confidential Information: 
  

	 	30.2.1	was previously known to the receiving Party prior to disclosure hereunder; 

  

	 	30.2.2	is now, or becomes in the future, public knowledge other than through acts or omissions of the receiving Party; 

  

	 	30.2.3	is lawfully obtained by the receiving Party from sources independent of the disclosing Party; or 

  

	 	30.2.4	is independently developed by the receiving Party without use of the Confidential Information of the disclosing Party. 

 30.3 The obligations of the Parties with respect to Confidential Information will continue for a period ending [*] from
the termination date of this Agreement, subject to Section 29.4. 
  
 30.4 The
non-disclosure obligations contained in Section 29.1 shall not apply to particular Confidential Information that a Party received from the other Party to the extent that such receiving Party is required to disclose such Confidential Information by
law, order or regulation of a governmental agency (including the California Public Records Act or governmental audit requirement) or a court of competent jurisdiction, provided that such Party shall first give reasonable notice of such
requirement to the other Party and shall seek, or cooperate in such other Party’s efforts in obtaining, a protective order or confidential treatment of such Confidential Information, and shall in any event disclose only the minimum amount of
information as is required. 
  

	31.	MISCELLANEOUS 

  
 31.1 The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
  
 31.2 This Agreement is not binding on the parties until it has been signed below on behalf of
each party. It is then effective as of the Effective Date. 
  
 31.3 No amendment
or modification of this Agreement is valid or binding on the parties unless made in writing and signed on behalf of each party. 
  
 31.4 This Agreement embodies the entire understanding of the parties and supersedes all previous communications, representations or understandings, either oral or
written, between the parties relating to the subject matter hereof. In case any of the provisions contained in this Agreement is held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality or unenforceability will not
affect any other provisions of this Agreement, and this Agreement will be construed as if the invalid, illegal, or unenforceable provisions had never been contained in it. 

 IN WITNESS WHEREOF, both The Regents and the Licensee have executed this Agreement, in duplicate
originals, by their respective and duly authorized officers on the day and year written. 
  

	 RENOVIS, INC.
	 	 	 	THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
					
	By:	 	 /s/    LYNN
ZYDOWSKY        

	 	 	 	By:	 	 /s/    JOEL B.
KIRSCHBAUM        

	 	 	(Signature)	 	 	 	 	 	(Signature)
					
	 Name:
	 	 LYNN ZYDOWSKY

	 	 	 	Name:	 	 JOEL B. KIRSCHBAUM

	 	 	(Please Print)	 	 	 	 	 	(Please Print)
					
	 Title:
	 	 SVP Corporate Development

	 	 	 	 Title:
	 	 Director OTM

					
	 Date:
	 	 12/27/02

	 	 	 	Date:	 	 12/27/02Sublease, dated August 5, 2003

 Exhibit 10.27 
  
 SUBLEASE 
  
 THIS SUBLEASE, dated August 5, 2003, is entered into by and between TULARIK
INC., a Delaware corporation (“Sublandlord”), and RENOVIS, INC., a Delaware corporation (“Subtenant”). 
  
 RECITALS 
  
 A. Sublandlord leases certain premises (the
“Premises”) consisting of approximately 81,235 rentable square feet of space located in that certain building located at Two Corporate Drive, South San Francisco, California (the “Building”).
Sublandlord is the tenant under that certain Build-To-Suit Lease dated the 10th day of February, 1998 (the “Master Lease”) with Britannia Biotech Gateway Limited Partnership, a Delaware limited partnership (“Master
Landlord”). A copy of the Master Lease is attached hereto as Exhibit A. Except as otherwise expressly provided herein, any capitalized terms herein without definition shall have the same meaning as they have in the Master Lease.

  
 B. Sublandlord desires to sublease to Subtenant, and
Subtenant desires to Sublease from Sublandlord, a portion of the Premises, as described below, during the Term, pursuant to the terms and provisions hereof. 
  
 NOW, THEREFORE, in consideration of the covenants and conditions contained herein, Sublandlord and Subtenant agree as
follows: 
  
 AGREEMENT 
  
 1. Sublease Premises. Sublandlord hereby subleases to Subtenant
and Subtenant hereby subleases from Sublandlord a portion of the Premises (the “Sublease Premises”), as follows: 
  
 (a) From the Commencement Date through April 30, 2006, the Sublease Premises shall consist of 60,235 rentable square feet on the
first and second floors of the Building, as more particularly shown on Exhibit B-1 attached hereto and incorporated herein. 
  
 (b) From May 1, 2006 through the Expiration Date, the Sublease Premises shall consist of the 60,235 rentable square feet shown on
Exhibit B-1 together with an additional portion of the Premises consisting of 10,000 rentable square feet as shown on Exhibit B-2 attached hereto and incorporated herein. 
  
 Sublandlord and Subtenant agree that the rentable square feet of the Sublease Premises is an approximation that has been
agreed by the parties hereto and shall not be subject to remeasurement or adjustment. 
  
 2. Term. 
  
 (a) The term of this Sublease (the “Term”) shall commence on the later of (i) September 1, 2003, (ii) the date Sublandlord has delivered possession of the Sublease Premises 

	[*]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

 
to Subtenant, or (iii) the date Master Landlord consents to this Sublease (the “Commencement Date”) and shall expire, unless sooner
terminated or extended pursuant to the further provisions hereof, at 11:59 p.m. on the date that is six (6) years after the Commencement Date, or such earlier date as the Master Lease may be terminated pursuant to the terms thereof. If the
Commencement Date does not occur on or before October 1, 2003, then Subtenant shall have the right to terminate this Sublease within ten (10) days thereafter upon ten (10) days’ prior written notice to Sublandlord, and in such event Sublandlord
shall immediately return to Subtenant all monies previously paid by Subtenant to Sublandlord pursuant to this Sublease. 
  
 (b) Subtenant shall have one option (the “Option”) to extend the term of the Sublease by three (3) years,
on the terms and conditions set forth herein. The Option is personal to the Subtenant originally named herein and shall not be exercisable and shall be deemed void if Subtenant is in default under this Sublease at the time of the exercise of the
Option, or if Subtenant is in default at the expiration of the Term. The Option must be exercised, if at all, by written notice (the “Option Notice”) to Sublandlord at least nine (9) months prior to the expiration of the
Term. In the event Subtenant timely exercises the Option in accordance with the foregoing, the Option shall be deemed to be exercised and the term of this Sublease shall be extended by three (3) years. All of the terms and conditions of this
Sublease shall continue to apply during the term of such Option except that Base Rent shall be adjusted to the lesser of (i) the “Fair Market Rent” (as defined below) or (ii) [*] per rentable square foot. 
  
 For purposes hereof, “Fair Market Rent” shall mean the annual
amount per rentable square foot, projected during the relevant period, that a willing non-equity tenant (excluding sublease and assignment transactions) would pay, and a willing landlord of a comparable laboratory and office building in the South
San Francisco area would accept, at arm’s length (what sublandlord is accepting in current transactions for the Premises may be considered), for space of comparable size, quality and floor height as the leased area at issue taking into account
the age, quality and layout of the existing improvements in the Sublease Premises and taking into account items that professional real estate brokers customarily consider, including, but not limited to, rental rates, office space availability,
tenant size, tenant improvement allowances, operating expenses and allowance, parking charges, free rent, free parking and any other lease concessions, if any, then being charged or granted by Sublandlord or the lessors of such similar office
buildings. Sublandlord shall determine the Fair Market Rent by using its good faith judgment and shall deliver a notice to Subtenant informing Subtenant of such determination no more than thirty (30) days after Sublandlord’s receipt of
Subtenant’s Option Notice. Within thirty (30) days of receipt of Sublandlord’s determination, Subtenant shall notify Sublandlord in writing (a) whether Subtenant accepts or objects to Sublandlord’s determination and (b) if Subtenant
so objects, whether Subtenant elects (i) to rescind its Option Notice or (ii) to preserve its Option Notice, in which case the Fair Market Rent shall be determined in accordance with the following procedure: Sublandlord and Subtenant shall
each appoint one arbitrator who shall by profession be a real estate broker or appraiser who shall have been active over the five (5) year period ending on the date of such appointment in the leasing (or appraisal, as the case may be) of commercial
office and laboratory buildings in the area in which the Building is located. The determination of the arbitrators shall be limited solely to the issue of whether Sublandlord’s or Subtenant’s submitted Fair Market Rent is the closest to
the actual Fair Market Rent, as determined by the arbitrators, (i.e., the arbitrators may only select Sublandlord’s or Subtenant’s determination and shall not be entitled to make a compromise determination). Each such 

  

 2. 

 
arbitrator shall be appointed within fifteen (15) business days after Subtenant’s notice. The two (2) arbitrators so appointed shall within five (5)
days of the date of the appointment of the last appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the initial two (2) arbitrators. The three (3)
arbitrators shall within five (5) days of the appointment of the third arbitrator reach a decision as to whether the parties shall use Sublandlord’s or Subtenant’s submitted Fair Market Rent and shall notify Sublandlord and Subtenant
thereof. The decision of the majority of the three (3) arbitrators shall be binding upon Sublandlord and Subtenant. If either Sublandlord or Subtenant fails to appoint an arbitrator within fifteen (15) business days after the Subtenant’s
notice, the arbitrator appointed by one of them shall reach a decision, notify Sublandlord and Subtenant thereof, and such arbitrator’s decision shall be binding upon Sublandlord and Subtenant. If the two (2) arbitrators fail to agree upon and
appoint a third arbitrator, or both parties fail to appoint an arbitrator, then the appointment of the third arbitrator or any arbitrator shall be dismissed and the Fair Market Rent to be decided shall be forthwith submitted to arbitration under the
provisions of the American Arbitration Association, but subject to the instruction set forth in this Section 2(b). The cost of arbitration shall be paid by Sublandlord and Subtenant equally. 
  
 (c) Upon mutual execution of this Sublease, Subtenant
shall have the right to enter the Sublease Premises and the Data Room for installation of furniture, fixtures and equipment and otherwise to prepare the Sublease Premises for Subtenant’s occupancy. During such period of early occupancy,
Subtenant shall comply with all of the terms of this Sublease, including, without limitation, Section 11 hereof, other than the payment of Rent pursuant to Section 3(a). Prior to Subtenant’s entry into the Sublease Premises or any other portion
of the Premises, Subtenant shall provide Sublandlord with evidence that Subtenant has obtained the insurance required by Section 11 hereof. 
  
 3. Rent. 
  
 (a) Commencing on the Commencement Date and continuing throughout the term of this Sublease, Subtenant shall pay monthly rent
consisting of Base Rent and Additional Rent (as defined below) (collectively, “Rent”) to Sublandlord in the following amounts: 
  
 (i) Base Rent. Subtenant shall pay to Sublandlord monthly base rent (“Base Rent”) on the rentable
square feet set forth below (notwithstanding the number of rentable square feet in the Sublease Premises set forth in Section 1(a) above): 
  

	 Period

	  	Rentable Square Feet (RSF)

	  	Amount per RSF

			
	 9/01/03-12/31/03
	  	25,000	  	[*]
			
	 1/01/04-8/31/04
	  	35,000	  	[*]
			
	 9/01/04-6/30/05
	  	45,000	  	[*]
			
	 7/01/05-4/30/06
	  	55,000	  	[*]
			
	 5/01/06-10/31/06
	  	70,235	  	[*]
			
	 11/01/06-10/31/07
	  	70,235	  	[*]
			
	 11/01/07-10/31/08
	  	70,235	  	[*]
			
	 11/01/08-8/31/09
	  	70,235	  	[*]

  

 3. 

 (ii) Additional Rent. In addition to Base Rent, Subtenant shall also pay to
Sublandlord, all Subtenant’s Proportionate Share (as defined below) of Operating Expenses (as that term is defined in Section 9.2 of the Master Lease) and all other costs payable by Sublandlord under the Master Lease (“Additional
Rent”). Additional Rent shall also include all amounts paid directly by Sublandlord to parties other than Sublandlord to the extent related to the Sublease Premises (e.g. real property taxes assessed against the tenant improvements in
the Sublease Premises, landscape maintenance, and parking lot maintenance). . For purposes hereof, “Subtenant’s Proportionate Share” means, during any period during the Term, the number of rentable square feet for which Subtenant is
paying Base Rent pursuant to Section 3(a)(i) above, divided by the number of rentable square feet in the Building (81,235). Prior to the Commencement Date, and then on or before December 1 of each year, Sublandlord shall give Tenant a yearly expense
estimate statement which shall set forth Sublandlord’s reasonable estimate of the total amount of Additional Rent for the remainder of calendar year 2003 or the succeeding calendar year, as applicable. Subtenant shall pay Additional Rent in
equal monthly installments based upon such estimate; provided, that the estimate statement may be revised and reissued by Sublandlord from time to time. Within 120 days after the end of each calendar year, Sublandlord shall give to Tenant a
statement, which shall indicate the Additional Rent incurred or accrued for such preceding calendar year, and which shall indicate the amount, if any, of any amounts due from Subtenant in excess of the amounts previously paid, or the amount of any
refund due. Upon receipt of the statement for each expense year ending during the Term, Tenant shall pay, with its next installment of Base Rent due, but in no event later than thirty (30) days after receipt of such statement the full amount of any
excess for such expense year. If a refund is due, Sublandlord shall provide such refund at the time it provides the statement. The failure of Sublandlord to timely furnish the statement for any expense year shall not prejudice Sublandlord from
enforcing its rights under this Section 3. Even though the Term has expired and Tenant has vacated the Sublease Premises, when the final determination is made of the Additional Rent due from Subtenant for the Term, Tenant shall immediately pay to
Sublandlord any amounts due. Upon request, Sublandlord shall furnish to Subtenant copies of any invoices for items constituting Additional Rent hereunder. 
  
 (iii) Direct Costs. Subtenant shall pay directly to the provider thereof all costs and expenses for, utilities, janitorial
services, HVAC maintenance and security for the Sublease Premises, and shall pay its own personal property taxes. 
  
 (b) Notwithstanding the foregoing, (1) Subtenant shall be liable for any amounts payable by Sublandlord to Master Landlord which
are (A) due to Subtenant’s breach of any provision of the Master Lease, (B) due to Subtenant’s negligence or willful misconduct, or (C) for the sole benefit of Subtenant, and any such amounts shall not be prorated between Sublandlord and
Subtenant and shall be the sole responsibility of Subtenant and (2) Sublandlord shall be liable for any amounts payable to Master Landlord that are (A) due to Sublandlord’s breach of any provision of the Master Lease, (B) due to
Sublandlord’s negligence or willful 

  

 4. 

 
misconduct, or (C) for the sole benefit of Sublandlord, and any such amounts shall not be prorated between Sublandlord and Subtenant and shall be the sole
responsibility of Sublandlord. 
  
 (c)
Anything in this Sublease to the contrary notwithstanding, Subtenant shall be liable for, and shall pay and deliver evidence of payment prior to delinquency, all taxes levied against any personal property, fixtures, machinery, equipment,
apparatus, systems and appurtenances or improvements placed by or on behalf of Subtenant in, about, upon or in connection with the Sublease Premises during the Term. 
  
 4. Security Deposit. Upon execution of this Sublease, Subtenant shall deposit with Sublandlord the sum of
$175,587.50 as a security deposit (“Security Deposit”). Subtenant hereby grants to Sublandlord a security interest in the Security Deposit, including but not limited to replenishments thereof. If Subtenant fails to pay Rent
or other charges when due under this Sublease, or fails to perform any of its other obligations hereunder, Sublandlord may use or apply all or any portion of the Security Deposit for the payment of any Rent or other amount then due hereunder and
unpaid, for the payment of any other sum for which Sublandlord may become obligated by reason of Subtenant’s default or breach, or for any loss or damage sustained by Sublandlord as a result of Subtenant’s default or breach. If Sublandlord
so uses any portion of the Security Deposit, Subtenant shall restore the Security Deposit to the full amount originally deposited within ten (10) days after Sublandlord’s written demand. Sublandlord shall not be required to keep the Security
Deposit separate from its general accounts, and shall have no obligation or liability for payment of interest on the Security Deposit. The Security Deposit, or so much thereof as had not theretofore been applied by Sublandlord, shall be returned to
Subtenant within thirty (30) days of the expiration or earlier termination of this Sublease, provided Subtenant has vacated the Sublease Premises. Notwithstanding the foregoing, Subtenant may deliver to Sublandlord a clean, unconditional,
irrevocable, transferable letter of credit in lieu of cash for the Security Deposit (the “Letter of Credit”) in form and issued by a financial institution (“Issuer”) satisfactory to Sublandlord in its
sole discretion. The Letter of Credit shall permit partial draws, and provide that draws thereunder will be honored upon presentation by Sublandlord. The Letter of Credit shall have an expiration period of one (1) year but shall automatically renew
by its terms unless affirmatively cancelled by either Issuer or Subtenant, in which case Issuer must provide Sublandlord 30 days’ prior written notice of such expiration or cancellation. The Letter of Credit shall remain in effect until sixty
(60) days after the Lease Expiration Date. Any amount drawn under the Letter of Credit and not utilized by Sublandlord for the purposes permitted by this Lease shall be held in accordance with this Section 4. If the Subtenant fails to renew or
replace the Letter of Credit as required under this Lease at least thirty (30) days before its stated expiration date, Sublandlord may draw upon the entire amount of the Letter of Credit. No fees applicable to the Letter of Credit shall be charged
to Sublandlord. 
  

 5. 

 5. Condition of the Sublease Premises. 
  
 (a) Except as set forth in Section 5(c) below,
Subtenant agrees that (i) Sublandlord has made no representations or warranties of any kind or nature whatsoever respecting the Sublease Premises or the built-in equipment or personal property located in or serving the Sublease Premises, their
condition or suitability for Subtenant’s use; and (ii) Subtenant agrees to accept the Sublease Premises and the built-in equipment and personal property located in or serving the Sublease Premises “as is, where is,” with all faults,
without any obligation on the part of Sublandlord to modify, improve or otherwise prepare the Sublease Premises for Subtenant’s occupancy. Subtenant agrees to maintain (at its sole cost and expense) all built-in equipment and personal property
located in or serving the Sublease Premises in the same condition and repair as when received, subject to normal wear and tear. 
  
 (b) Sublandlord has not made an independent investigation of the Premises or determination with respect to the physical and
environmental condition of the Premises including without limitation compliance with The Americans With Disabilities Act, the existence of any underground tanks, pumps, piping, toxic or hazardous substances on the Premises. Subtenant shall rely
solely on its own investigations and/or that of a licensed professional specializing in the areas referenced in this Section 5(b). 
  
 (c) Sublandlord hereby warrants that as of the Commencement Date all mechanical, plumbing and electrical systems within the portion
of the Sublease Premises shown on Exhibit B-1 shall be in good working order and condition. Subtenant shall notify Sublandlord of any non-compliance with the foregoing warranty within 30 days of the Commencement Date and Sublandlord shall promptly
repair or correct the defect. Sublandlord’s warranty and obligation to repair in accordance with the foregoing shall expire unless Subtenant notifies Sublandlord of a breach of the warranty within 30 days of the Commencement Date. Sublandlord
hereby warrants that as of May 1, 2006 (or, if later, the date of actual delivery of the portion of the Sublease Premises shown on Exhibit B-2) (the “Delivery Date”), all mechanical, plumbing and electrical systems within the portion of
the Sublease Premises shown on Exhibit B-2 shall be in good working order and condition. Subtenant shall notify Sublandlord of any non-compliance with the foregoing warranty within 30 days of the Delivery Date and Sublandlord shall promptly repair
or correct the defect. Sublandlord’s warranty and obligation to repair in accordance with the foregoing shall expire unless Subtenant notifies Sublandlord of a breach of the warranty within 30 days of the Delivery Date. 
  
 (d) Subtenant’s alterations and modifications of
the Sublease Premises shall be governed by Article 11 of the Master Lease (as incorporated by Section 8 of this Sublease); provided, however, that Subtenant shall not be obligated to remove any lab benches, fume hoods, cold rooms or other built-in
equipment present in the Premises on the Commencement Date, or any Furniture (as defined below), at the end of the Term. In addition, Subtenant agrees that if any of Subtenant’s alterations or modifications require a building permit, Subtenant
shall engage only licensed contractors to perform such alterations or modifications. Sublandlord shall reimburse Subtenant for the actual cost incurred by Subtenant to remove Sublandlord’ sign from the Building, provided such removal is done at
the same time as installation of Subtenant’s sign on the Building. 
  

 6. 

 6. Use. Subtenant may use the Sublease Premises as administrative offices, for research and
development purposes and/or as laboratory to the extent permitted under the Master Lease and for no other purpose without the approval of the Master Landlord and Sublandlord. Subtenant will not enter, nor allow any agent, independent contractor or
other person access from the Sublease Premises to any other portion of, the Premises without an escort by an employee of Sublandlord. Sublandlord shall have the right to inspect the Sublease Premises at any time after giving Subtenant twenty-four
(24) hours notice; provided, however, that Sublandlord shall have the unrestricted right to access the Sublease Premises at any time, without notice, in the event of an emergency. If Sublandlord exercises its right of entry under emergency
circumstances without prior notice to Subtenant, Sublandlord shall nevertheless notify Subtenant by telephone concurrently with such entry, or if concurrent telephonic notice is not reasonably possible, as soon thereafter as is reasonably possible,
provided that Subtenant has informed Sublandlord of the person(s) who should be notified of such entry and their telephone numbers. Sublandlord agrees to maintain the confidentiality of any confidential, privileged or proprietary information
regarding Subtenant that Sublandlord may obtain through its access to the Sublease Premises. Subtenant acknowledges and agrees that the operation and use of the Sublease Premises may require that Subtenant apply for and receive licenses and/or
permits from various federal, state and local governments, and Subtenant covenants and agrees to apply for and receive such licenses and/or permits as are required. Subtenant shall provide to Sublandlord copies of any such licenses and/or permits to
the extent applicable to the Sublease Premises. In the event of any disagreement concerning the interpretation of such licenses, permits, policies and/or procedures, the determination of the employee of Sublandlord charged with ensuring compliance
with such licenses, permits, policies and/or procedures shall be controlling. 
  
 7. Master Lease. This Sublease shall be subject and subordinate to all of the terms and provisions of the Master Lease. Except for payments of Rent (which payments shall be made by Sublandlord) and
except for those provisions of the Master Lease excluded by Section 8 below, Subtenant hereby assumes and agrees to perform, during the Term, all of Sublandlord’s obligations under the Master Lease to the extent such obligations are applicable
to the Sublease Premises and accrue after the date hereof pursuant to this Sublease. 
  
 8. Incorporation of Master Lease. 
  
 Except as otherwise provided herein, all of the terms and provisions of the Master Lease are incorporated into and made a part of this Sublease and the rights and obligations of the parties under the Master Lease are hereby imposed upon the
parties hereto with respect to the Sublease Premises, the Sublandlord being substituted for the “Landlord” in the Master Lease, the Subtenant being substituted for the “Tenant” in the Master Lease, and this Sublease being
substituted for the “Lease” and the “Sublease Premises” being substituted for the “Property” in the Master Lease (except in Section 13.6(b)(viii), Section 13.6(c) and Section 14.6, where the “Property” shall
mean the Property); provided, however, that the term “Landlord” in Sections 1.2 and 12.1(a) shall mean Master Landlord, not Sublandlord. The parties specifically agree that any provisions relating to any construction obligations of
“Landlord” under the Master Lease with respect to construction that occurred or was to have occurred prior to the Commencement Date hereof, are hereby deleted. Sublandlord shall not be liable to Subtenant for any failure by Master Landlord
to perform its obligations under the Master Lease, nor shall such failure by Master Landlord excuse performance by Subtenant of its obligations hereunder; provided, however, that 

  

 7. 

 
Sublandlord shall use its commercially reasonable efforts to cause Master Landlord to perform its obligations under the Master Lease. Anything in the Master
Lease to the contrary notwithstanding, no personal liability shall at any time be asserted or enforceable against Sublandlord’s stockholders, directors, officers or partners on account of Sublandlord’s obligations or actions under this
Sublease. The following Sections of the Master Lease are not incorporated herein: Section 1.1(a), Section 2.1, Section 2.2, Section 2.3, Section 2.4, Section 2.6, Section 3.1, Article 4, Article 5, Article 6, Article 7, Section 9.1, Section 9.3(a),
Section 12.2(c), Section 13.6(d), Section 16.2, Article 17, Section 19.2, Section 20.1, Section 21.15, Section 21.16, Section 21.20 and Exhibits A-E. 
  
 Notwithstanding the foregoing, for purposes of the incorporation set forth in this Section 8, Section 13.6(b)(vi) of the Master Lease is amended to delete
“Nuclear Regulatory Commission” and insert “California Department of Health Services (“DHS”).” 
  
 9. Sublandlord’s Obligations. 
  
 (a) Provided that Subtenant is not in default under the terms of this Sublease, Sublandlord agrees (i) to make timely payments of
the Rent due under the Master Lease and to perform all of its other obligations under the Master Lease (except to the extent assumed by Subtenant hereunder), (ii) subject to Sublandlord’s right to exercise a discretionary right to terminate the
Master Lease as set forth in the second sentence of Section 15 hereof, to maintain the Master Lease in full force and effect and (iii) not to amend the Master Lease in any way which could have a material adverse impact on Subtenant. 
  
 (b) To the extent that the provision of any services
or the performance of any maintenance or any other act (collectively “Master Landlord Obligations”) is the responsibility of Master Landlord, Sublandlord, upon Subtenant’s request, shall make reasonable efforts to cause
Master Landlord under the Master Lease to perform such Master Landlord Obligations; provided, however, that in no event shall Sublandlord be liable to Subtenant for any liability, loss or damage whatsoever in the event that Master Landlord should
fail to perform the same, nor shall Subtenant be entitled to withhold the payment of Rent or terminate this Sublease, unless such failure is the result of an event of default on the part of Sublandlord under this Sublease, the Master Lease, or both.
It is expressly understood that Sublandlord does not assume Master Landlord Obligations and that the services and repairs that are incorporated herein by reference, including but not limited to the furnishing of elevators or other services or
maintenance, restoration (following casualty or destruction), or repairs to the Building, Premises and/or Sublease Premises which are Master Landlord Obligations will in fact be furnished by Master Landlord and not Sublandlord, except to the extent
otherwise provided herein. 
  
 (c)
Sublandlord shall, at its sole cost and expense, maintain in good condition and repair all portions of the Building and the Common Areas which Sublandlord, as tenant under the Master Lease, is obligated to maintain and repair pursuant to Section
12.2(a) of the Master Lease, except for the interior portions of the Sublease Premises, which, subject to the terms hereof, shall be maintained by Subtenant. 
  

 8. 

 (d) Except as provided in this Sublease, Sublandlord shall have no other
obligations to Subtenant with respect to the Sublease Premises or the performance of the Master Landlord Obligations. 
  
 10. Furniture. During the term of this Sublease, Subtenant shall have the right to use the existing cubicles and furniture in the Sublease
Premises (the “Furniture”). Subtenant shall accept such Furniture in its “as-is” condition without any representation or warranty by Sublandlord. Subtenant’s insurance as required under this Sublease shall
include an all risk property insurance policy for the Furniture for its full replacement value, and Subtenant shall maintain the Furniture in good condition during the term hereof. At the expiration or earlier termination of this Sublease, Subtenant
shall return the Furniture to Sublandlord in the same condition received, ordinary wear and tear excepted. 
  
 11. Insurance. 
  
 (a) Subtenant shall be responsible for compliance with the insurance provisions applicable to the Tenant under the Master Lease.
Such insurance shall insure the performance by Subtenant of its indemnification obligations hereunder and shall name Master Landlord and Sublandlord as additional insureds. All insurance required under this Sublease shall contain an endorsement
requiring thirty (30) days written notice from the insurance company to Subtenant and Sublandlord before cancellation or change in the coverage, insureds or amount of any policy. Subtenant shall provide Sublandlord with certificates of insurance
evidencing such coverage prior to the commencement of this Sublease. 
  
 (b) The waiver of subrogation provision contained in Section 14.4 of the Master Lease shall be deemed to be a three party agreement binding among and inuring to the benefit of Sublandlord, Subtenant and Master
Landlord (by reason of its consent hereto). 
  
 12.
Default. In addition to the defaults contained in the Master Lease which have been incorporated by reference in Section 8(a) of this Sublease, failure of Subtenant to make any payment of Rent within five (5) days following receipt by
Subtenant of written notice that such payment is delinquent shall constitute an event of default hereunder. If Subtenant’s default causes Sublandlord to default under the Master Lease, Subtenant shall defend, indemnify and hold Sublandlord
harmless from all damages, costs (including reasonable attorneys’ fees), liability, expenses or claims relating to such default. 
  
 13. Assignment and Subletting. Subtenant may not assign, sublet, transfer, pledge, hypothecate or otherwise encumber the Sublease Premises,
in whole or in part, or permit the use or occupancy of the Sublease Premises by anyone other than Subtenant, unless Subtenant has obtained Sublandlord’s consent thereto (which shall not be unreasonably withheld) and the consent of Master
Landlord; provided, however, that Subtenant shall have the right to engage in a Permitted Transfer (as defined in Section 15.1 of the Master Lease) without such consent (but with prior or concurrent notice by Subtenant to Sublandlord. Regardless of
Sublandlord’s consent, no subletting or assignment shall release Subtenant of its obligations hereunder. Any rent or other consideration payable to Subtenant pursuant to any sublease or assignment permitted by this paragraph which is in excess
of the Rent payable to Sublandlord pursuant hereto (after deduction of actual, reasonable leasing commissions and attorneys’ fees incurred in 

  

 9. 

 
connection with the sublease or assignment) shall be paid 75% to Sublandlord and 25% to Subtenant. 
  
 14. Parking. Subtenant shall have Subtenant’s
Proportionate Share of parking rights as Sublandlord may have in connection with the Sublease Premises pursuant to the Master Lease. 
  
 15. Early Termination of Master Lease. If, without the fault of Sublandlord or Subtenant, the Master Lease should terminate prior to the
expiration of this Sublease, neither party shall have any liability to the other party. To the extent that the Master Lease grants Sublandlord any discretionary right to terminate the Master Lease, whether due to casualty, condemnation or otherwise,
Sublandlord shall be entitled to exercise or not exercise such right in its complete and absolute discretion; provided, however, that Sublandlord shall use reasonable efforts to give to Subtenant as much prior notice of its intent to terminate as
practicable. 
  
 16. Consent of Master Landlord. If
Subtenant desires to take any action that requires the consent of Master Landlord pursuant to the terms of the Master Lease, including, without limitation, making any modification, alteration or improvement of the Sublease Premises or entering into
a further sublease or assignment of this Sublease, and in any event if Subtenant desires to make any alternation to the Sublease Premises, then, notwithstanding anything to the contrary herein, (a) Sublandlord shall have the same rights of approval
or disapproval as Master Landlord has under the Master Lease, (b) Subtenant shall not take any such action until it obtains the consent of both Sublandlord and Master Landlord and (c) Subtenant shall request that Sublandlord obtain Master
Landlord’s consent on Subtenant’s behalf, unless Sublandlord agrees that Subtenant may contact Master Landlord directly with respect to the specific action for which Master Landlord’s consent is required. If Subtenant requests that
Sublandlord obtain Master Landlord’s consent on any matter, Sublandlord shall use its commercially reasonable efforts to obtain such consent from Master Landlord, unless Sublandlord agrees that Subtenant may contact Master Landlord directly
with respect to the specific action for which Master Landlord’s consent is required. 
  
 17. Surrender of Sublease Premises. In lieu of any obligation or liability set forth in the Master Lease, upon the termination of this Sublease, Subtenant shall surrender the Sublease Premises and all
Furniture and built-in equipment to Sublandlord broom-clean and in as good a condition as on the Commencement Date, ordinary wear and tear excepted. In addition, Subtenant shall remove any alterations, additions and improvements made by or at the
request of Subtenant (whether or not made with Sublandlord’s consent), prior to the termination of this Sublease and restore the Sublease Premises to its prior condition, ordinary wear and tear excepted, repairing all damage caused by or
related to any such removal, all at Subtenant’s expense; provided, however, that Subtenant shall not be obligated to remove any such alteration, addition or improvement which Sublandlord or Master Landlord did not elect to require Subtenant to
remove pursuant to Section 11.2 of the Master Lease (as incorporated by reference herein). 
  
 18. No Third Party Rights. The benefit of the provisions of this Sublease is expressly limited to Sublandlord and Subtenant and their respective permitted successors and assigns. Under no circumstances
will any third party be construed to have any rights as a third party beneficiary with respect to any of said provisions. 
  

 10. 

 19. Time of Essence. It is expressly understood and agreed that time is of the essence with
respect to each and every provision of this Sublease. 
  
 20.
Attorneys’ Fees. If any action or proceeding at law or in equity shall be brought to enforce or interpret any of the provisions of this Sublease, the prevailing party shall be entitled to recover from the other party its reasonable
attorneys’ fees and costs incurred in connection with the prosecution or defense of such action or proceeding. 
  
 21. Approval of Master Landlord. This Sublease shall be conditioned upon, and shall not take effect until, receipt of the written consent of
Master Landlord thereto. Upon receipt of such consent, this Sublease shall be effective as of the Commencement Date. Sublandlord and Subtenant acknowledge and agree that in granting such consent, notwithstanding any other provisions contained in or
implied in this Sublease, Master Landlord shall not be deemed or construed (a) to have released Sublandlord from any responsibility for the full and timely performance of all obligations of Sublandlord as Tenant under the Master Lease as it pertains
to the Sublease Premises, nor (b) to have authorized Sublandlord to act on Master Landlord’s behalf in exercising or waiving any rights, remedies or privileges of Master Landlord as Landlord under the Master Lease as it pertains to the Sublease
Premises, nor (c) to have assumed, incurred or undertaken any obligations or liabilities running directly to Subtenant with respect to the Sublease Premises, it being the explicit intention and understanding of the parties that, notwithstanding the
incorporation by reference of a portion of the Master Lease into this Sublease, Master Landlord and Sublandlord shall look solely to one another for the performance of their respective obligations with respect to the Premises as Landlord and Tenant
under the Master Lease, and that Sublandlord and Subtenant shall look solely to one another for the performance of their respective obligations with respect to the Sublease Premises under this Sublease. 
  
 22. Notices. The addresses specified in the Master Lease for
receipt of notices to each of the parties are deleted and replaced with the following: 
  

	To Sublandlord at:	  	 Tularik Inc.
 1120 Veterans Blvd.
 South San Francisco, CA 94080
 Attn: Luis Bayol

		
	To Subtenant at:	  	 Renovis, Inc.
 Two Corporate Drive
 South San Francisco, CA 94080
 Attn: John Doyle

  
 23.
Brokers. Each party hereto represents and warrants that it has dealt with no broker in connection with this Sublease and the transactions contemplated herein other than Randy Scott of Cornish & Carey. Sublandlord shall be responsible
for payment of any commissions due to Randy Scott as a result of this Sublease. Each party shall indemnify, protect, defend and hold the other party harmless from all costs and expenses (including reasonable attorneys’ fees) arising from or
relating to a breach of the foregoing representation and warranty. 
  

 11. 

 24. No Existing Defaults. Sublandlord represents and warrants to Subtenant that as of the
date hereof the Master Lease is in full force and effect, that Sublandlord has neither given nor received a notice of default under the Master Lease, and that Sublandlord is not aware of any event which with the giving of notice or the passage of
time could give rise to a default under the Master Lease. 
  
 25. Quiet Enjoyment. Sublandlord covenants that Subtenant shall peacefully have, hold and enjoy the Sublease Premises, subject to the terms and conditions of this Sublease and subject to the Master Lease, provided that
Subtenant pays all rent and performs all of Subtenant’s covenants and agreements contained herein. 
  
 26. Damage and Destruction. 
  
 (a) Termination of Master Lease. If the Sublease Premises is damaged or destroyed and the Master Landlord or Sublandlord
exercises any option either may have to terminate the Master Lease, if any, this Sublease shall terminate as of the date of the casualty. In the event that after a damage or destruction of the Sublease Premises, where the time estimated to restore
the Sublease Premises exceeds 180 days, Subtenant shall have the right to terminate this Sublease on written notice to Sublandlord given within thirty (30) days after determination of the amount of time to restore the Sublease Premises, which
termination shall be effective as of the date of the casualty. 
  
 (b) Continuation of Sublease. If the Master Lease or this Sublease is not terminated following any damage or destruction as provided in subsection (a) above, this Sublease shall remain in full force and
effect, and Rent shall be abated proportionately to the extent rent payable under the Master Lease is abated. 
  
 27. Eminent Domain. If all or any part of the Sublease Premises is condemned by eminent domain, inversely condemned or sold in lieu of
condemnation, for any public or a quasi-public use or purpose, this Sublease may be terminated as of the date of title vesting in such proceeding by either party, and Rent shall be adjusted to the date of termination. 
  
 28. Right of First Refusal. 
  
 Provided Tenant is not then in default under this Sublease, prior to
executing a lease proposal with a third party for any occupancy of that portion of the Building outlined on Exhibit C (the “ROFR Space”) which would be in effect or commence on or after January 1, 2006, Sublandlord
shall deliver a written notice (the “ROFR Notice”) to Subtenant setting forth the terms upon which Sublandlord is willing to sublease the ROFR Space to such third party. Subtenant shall notify Sublandlord in writing with five
(5) business days after receipt of the ROFR Notice of Subtenant’s election to sublease the particular ROFR Space on the terms set forth in the ROFR Notice (“Subtenant’s Election Notice”). Failure of Subtenant to
deliver such notice within the required time period shall be deemed an election by Subtenant to not sublease the ROFR Space and Subtenant shall have no further rights to sublease the ROFR Space that was the subject of the ROFR Notice thereafter,
provided Sublandlord enters into a sublease with a third party on substantially the same terms as set forth in the ROFR Notice. In the event Sublandlord does not lease the ROFR Space pursuant to the ROFR Notice and desires to 

  

 12. 

 
sublease such ROFR Space to a third party on terms that are not substantially the same as those set forth in the ROFR Notice, Sublandlord shall repeat the
procedure set forth above for offering the terms to Subtenant. In the event Subtenant delivers Subtenant’s Election Notice within the time period required herein, Sublandlord and Subtenant shall enter into a sublease for the ROFR Space within
ten (10) business days after Sublandlord’s receipt of Subtenant’s Election Notice, which sublease shall be substantially identical to the this Lease; provided, however, that the economic terms (including, without limitation, the
term, the amount of rent and the tenant improvement allowance, if any) shall be the terms set forth in the ROFR Notice. Anything herein to the contrary notwithstanding, if Subtenant is in default under any of the terms, covenants or conditions of
this Sublease, either at the time Subtenant sends Subtenant’s Election Notice or on the commencement date of the new sublease, Sublandlord shall have, in addition to all of Sublandlord’s other rights and remedies provided in this Sublease,
the right to terminate the right of first refusal contained herein upon notice to Subtenant. 
  
 29. Multi-Tenant Building. Sublandlord and Subtenant acknowledge that the Building may require some modification to accommodate more than one tenant. In the event Sublandlord subleases the portion of the
Premises outlined on Exhibit B-2 prior to inclusion in the Sublease Premises (which Sublandlord may do in its sole and absolute discretion), Sublandlord shall be responsible, at its sole cost and expense, for (a) all modifications to the
Building which are reasonably necessary to separate the various subleased premises in the Building, provided such modifications can be made at a reasonable cost and are permitted by applicable law (including, without limitation, the California
Building Code) and (b) if requested by Subtenant, the removal of all such modifications, prior to Subtenant’s occupancy of such portion of the Premises pursuant to Section 1(b) of this Sublease. Notwithstanding the foregoing, Sublandlord shall
not be responsible for any locks or other security measures to prevent third party access to the Sublease Premises (which shall be the sole responsibility of Subtenant). 
  
 30. Access to Data Room. In connection with Subtenant’s use of the Sublease Premises, Subtenant shall at all
times have access to the data/communications room (the “Datacom Room”) located in that certain building located at One Corporate Drive, South San Francisco, California (“Building 1”) for purposes of
repairing, maintaining and connecting data and communications lines and equipment for the Sublease Premises and for access to the security system panel to add and delete authorized users of the Sublease Premises and related purposes. Sublandlord
shall have the right to institute reasonable rules and regulations applicable to such access for safety and security purposes and Subtenant agrees to comply therewith provided such rules and regulations do not interfere with Subtenant’s access
to the Datacom Room on a 24 hours per day, 7 days per week basis. In addition, Subtenant shall have the right to install, at its sole cost and expense, security devices in or to the Datacom Room provided that Sublandlord shall have approved the same
in its reasonable discretion. 
  
 31. Hazardous Materials.
For purposes of the indemnity set forth in Section 13.6(c) of the Master Lease as incorporated by Section 8 of this Sublease, Sublandlord shall provide Subtenant with environmental reports prior to the Commencement Date which shall establish the
presence or absence of any hazardous substances and wastes or radiation or radioactive materials on or about the Sublease Premises and Property as of the Commencement Date, provided that the reports regarding hazardous substances and wastes are
reasonably acceptable to Subtenant. In 

  

 13. 

 
the event the DHS does not accept Sublandlord’s report regarding radiation or radioactive materials in the Sublease Premises for purposes of closing
Sublandlord’s license therefor, the presence or absence of radiation or radioactive materials in the Sublease Premises as of the Commencement Date shall be determined by that report actually accepted by the DHS; provided, however, if
Subtenant causes the presence of radiation or radioactive materials in the Sublease Premises after the Commencement Date or any earlier occupancy, then notwithstanding anything to the contrary contained in this Sublease, Sublandlord shall have no
responsibility or indemnity obligation for such radiation or radioactive materials caused by Subtenant. 
  
 [THIS SPACE INTENTIONALLY LEFT BLANK] 
  

 14. 

 EXECUTED as of the date first written above. 
  

	 SUBLANDLORD
  
 TULARIK INC.
 a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	  

  

	
	 SUBTENANT
  
 RENOVIS, INC.
 a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

  
 [SIGNATURE PAGE TO SUBLEASE] 

 CONSENT OF MASTER LANDLORD 
  
 BRITANNIA BIOTECH GATEWAY, L.P., “Master Landlord” under the
Master Lease identified in that certain Sublease dated, for reference purposes, July         , 2003 to which this Consent is attached, hereby consents to said Sublease. This Consent shall not be deemed
to relieve Sublandlord, as Tenant under the Master Lease, from any obligation or liability thereunder, nor shall this Consent be deemed Master Landlord’s consent to any further subletting or assignment. 
  
 By its consent hereto, Master Landlord agrees to the waiver of subrogation
provision described in Section 11(b) of the attached Sublease and to use reasonable efforts to obtain an endorsement from its insurers providing for said subrogation waiver from such insurers in favor of Subtenant. 
  

	 	 	 	 	 MASTER LANDLORD:
  
 BRITANNIA BIOTECH GATEWAY, L.P.
 a Delaware limited partnership

				
	 	 	 	 	 	 	 By: Britannia Gateway, LLC,
 a
California limited liability company

				
	 	 	 	 	 	 	 Its: Managing Partner

					
	Date:	 	  

	 	 	 	By	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

 EXHIBIT A 
  
 [MASTER LEASE] 
  

 EXHIBIT B-1 
  
 OUTLINE OF INITIAL SUBLEASE PREMISES 

 EXHIBIT B-2 
  
 OUTLINE OF ADDITIONAL SUBLEASE PREMISES 

 EXHIBIT C 
  
 RIGHT OF FIRST REFUSAL SPACE

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