Document:

Bayview Business Park Standard Lease

 EXHIBIT 10.2 
  
 BAYVIEW BUSINESS PARK 
  
 STANDARD LEASE 
  
 BASIC LEASE INFORMATION 

	 	1.	 	Date:  6/16/03 

  

	 	2.	 	Lessor:  Bayview Ignacio, LLC 

 P. O. Box 11068 
 Santa Rosa, Ca 95406 
 (707) 544-7050 
 (707) 523-7031 FAX 
  

	 	3.	 	Lessee:  BioMarin Pharmaceutical Inc. 

 Address for Lessee Notices:  90 Digital Drive, Novato, California 94949 
 Phone:  (415) 884-6700 
 FAX:  (415) 382-7885 
  

	 	4.	 	Lessee Responsible Party:  Jeffrey Landau, Vice President of Administration 

 Address of Responsible Party:  90 Digital Drive, Novato, California 94949 
  

	 	5.	 	Premises:  The entire premises consisting of Building “O” located at 105 Digital  Drive and Building “P” located at 90 Digital Drive,
Novato, California 

  
 Total:  74,825 square feet 
  

	 	6.	 	Term:  Ten full years (plus a partial month if Commencement Date is other than the 1st of the month) 

  

	 	7.	 	Estimated Commencement Date:  November 1st, 2003 (Refer to Paragraph 3(d)) 

  

	 	8.	 	Base Term Expiration Date:  October 31st, 2013 (Based upon November 1st, 2003 Commencement Date) 

  

	 	9.	 	Initial Base Monthly Rent:  $112,237.50 

  

	 	10.	 	Initial Security Deposit:  $561,000.00 

  

	 	11.	 	Use:  Administrative offices and storage. As part of the foregoing uses, Lessee may use the Premises for conference rooms, employee cafeterias and lunch rooms,
boardrooms, telecommunications and data equipment rooms, training rooms, lobbies, and employee gymnasium and fitness rooms. Use of part or all of the Premises for lab is specifically excluded. 

  

	 	12.	 	Exhibits: 

 “A”        The Building 
 “B”        The Premises 
 “C”        Declaration of Covenants and Protective Standards 
 “D”        Insurance Endorsement Format 
 “E”         Estoppel Format 
 “F”         Lessee Hazardous Materials 
 “G”        Initial Improvement Concept Drawings 
 “H”         Preliminary Space Plans 
 “I”          Complete Working Drawings 
 (Note: Exhibits “G,H and
I” to be combined and replaced with As Built Initial Interior Plans within 24 months of Commencement Date) 
 “J”          Exterior Preliminary Plans 
 “K”         Exterior Permit Plans 
 (Note: Exhibits “J and K” to
be combined and replaced with As Built Exterior Plans within 24 months of Commencement Date) 
 “L”         Site Plan 
  

	 	13.	 	Addenda:  Paragraphs 43 through 50. 

  
 In the event of conflict between any Basic Lease Information and the Lease, the former shall control. 
  

	
	  	

	 Lessor
	  	Lessee

 BAYVIEW BUSINESS PARK 
 STANDARD LEASE 
  
 For and in consideration
of the rents, covenants, conditions and agreements hereinafter reserved and contained, by Lessee, to be paid, kept, observed and performed, Lessor, Bayview Ignacio, LLC, leases unto Lessee and Lessee hires from Lessor the premises described in the
Basic Lease Information (the Premises) together with appurtenances, situated in Buildings “O” at 105 Digital Drive and “P” at 90 Digital Drive located in Bayview Business Park (the Project or Property), in the city of Novato,
county of Marin, state of California. 
  
 Said hiring and letting is upon each and
every of the following terms and conditions: 
  

	1.	 	BACKGROUND: 

  
 The Lessor holds a fee simple interest in the Project and represents and warrants that Lessor has right, title and authority to enter into this agreement. 
  

	2.	 	LESSEE AUTHORITY: 

  
 If Lessee is a corporation, trust or general or limited partnership, or sole proprietor, each individual executing this Lease on behalf of such entity
represents and warrants that he and/or she is duly authorized to execute and deliver this Lease on behalf of said entity. Lessee shall, prior to the execution of this Lease, deliver satisfactory evidence to Lessor of such authority. Failure to
comply with this requirement within the time stated shall constitute a breach of the Lease. 
  

	3.	 	TERM: 

  

	 	a.	 	The term of this Lease shall be for a period of ten (10) years and one partial month (if applicable), beginning November 1st, 2003 and continuing until October 31st, 2013. Lessee shall be tendered occupancy of the Premises as of the stated Commencement Date. 

  

	 	b.	 	Lessor shall keep Lessee informed of any changes in the Commencement Date. 

  

	 	c.	 	If Lessor shall not have tendered possession of the Premises to Lessee such that the occupancy date thereof would be more than ninety (90) days after the commencement date set forth
in paragraph “a” above, Lessee may at Lessee’s option by notice in writing to Lessor, cancel this Lease, in which event Lessor and Lessee shall be discharged from all obligations hereunder. In the event this Lease is cancelled by
Lessee due to Lessor’s failure to diligently pursue work on the Premises to be performed by it, Lessor shall be discharged from all obligations under this Lease and shall not be liable for any other costs or damages which Lessee may suffer,
except for return of advance rent payments and security deposits made by Lessee. 

  

	 	d.	 	In the event that the Lease commences on a date later than November 1st, 2003 pursuant to the terms of Subparagraph “c” above, or as otherwise agreed to by Lessor and Lessee, the Commencement Date shall be the date when possession of the Premises is delivered by Lessor to Lessee. In
such event the Commencement Date shall be memorialized in writing acknowledged by both Lessor and Lessee. 

  

	4.	 	SECURITY DEPOSIT: 

  

	 	a.	 	Lessee shall deposit with Lessor upon execution of this Lease the sum indicated on the Basic Lease Information as initial security for Lessee’s full and faithful
performance of Lessee’s obligations hereunder. Such deposit does not constitute an advance payment of any rent, including last months’ rent. If Lessee fails to pay rent or other charges due hereunder or otherwise defaults with
respect to any provision of this Lease, Lessor may use, apply or retain all or any portion of such deposit for payment of any rent or other charge in default, or for the payment of any other sum to which Lessor may become obligated by reason of
Lessee’s default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. Should Lessor so use, apply or retain all or any portion of such deposit, Lessee shall, within five (5) days after written demand therefor,
deposit certified funds with Lessor in an amount sufficient to restore such deposit to the full amount hereinabove stated, and Lessee’s failure to do so shall be a material breach of this Lease. 

  

	 	b.	 	Lessor shall not be required or in any way obligated to keep such deposit separate from its general accounts. No trust relationship is created herein between Lessor and Lessee with
respect to such deposit. If Lessee performs all of Lessee’s obligations hereunder, such deposit, or so much thereof as has not therefore been used, applied or retained by Lessor, shall be returned, without payment of interest or other increment
for its use, except as otherwise set forth in Paragraph 4d below, to Lessee within twenty-one (21) days of the later of Lease expiration or Lessee’s vacating the Premises and return of keys to Lessor. 

  

	 	c.	 	If Lessee applies to Lessor for approval of changes, additions, improvements or modifications as described in Paragraphs 13 and 14 of this Lease (except with respect to the
Initial Interior and Exterior Improvements as set forth in Paragraphs 49 and 50 of Addendum 1 to this Lease), Lessor may, at its sole option, require Lessee to increase the deposit by such amounts as are, in Lessor’s commercially reasonable
discretion, necessary to restore the premises to its original condition at termination of this Lease. Such additional amounts, if any, will be subject to the provisions of this Paragraph 4. 

  

	 	d.	 	Lessor shall credit Lessee annually with interest on the Security Deposit, in the amount of the average of the Bank of America passbook rate for the previous year, against the
next installment of the Base Monthly Rent due. 

  

 2 

	5.	 	USE: 

  
 The Premises are hereby leased to Lessee upon the express condition that Lessee shall use said Premises ONLY for the use indicated in the Basic Lease Information. 
  
 Lessee agrees that Lessee’s business shall be established and conducted
through the term hereof in a first class manner; that Lessee will not use the demised Premises for, or carry on or permit upon said Premises any unreasonably offensive, noisy, dangerous or unlawful trade, business, manufacture or occupation
or any nuisance or violation of public policy, nor permit any auction sale to be held or conducted on or about said Premises; that Lessee shall not commit, or suffer to be committed, any waste upon the Premises; that Lessee shall not do or suffer
anything to be done upon said Premises which will cause structural injury to said Premises or the Building of which same form a part; that said Premises will not be overloaded and that no machinery, apparatus or other appliance shall be used or
operated in or upon the Premises which will in any manner injure, vibrate or shake said Premises or the Building of which it is a part; that no use will be made of the Premises which will in any way impair the efficient operation of the sprinkler
system within the Building containing the Premises; that Lessee will not abandon said Premises during the term hereof unless pursuant to an assignment of this Lease or subletting of the Premises approved by Lessor in the manner described elsewhere
in this Lease; and that without the advance written permission of Lessor no musical instrument of any sort, or any noise-making device will be operated or allowed upon said Premises for the purpose of attracting trade or otherwise. 
  
 Lessee further agrees not to use or permit the use of the Premises or any
part thereof for any purpose prohibited by law or which will increase the existing rate of insurance upon the Building in which the Premises may be located, or cause a cancellation of any insurance policy covering said Building or any part thereof.
If any act or use of Premises on the part of Lessee shall cause, directly or indirectly, any increase of Lessor’s insurance premiums said additional premiums shall be paid by Lessee to Lessor upon demand. No such payment by Lessee shall limit
Lessor in the exercise of any other rights or remedies, or constitute a waiver of Lessor’s right to require Lessee to discontinue such act or use. 
  
 No use shall be made or permitted to be made of the Premises or any part thereof, and no act done therein, which may unreasonably disturb the quiet
enjoyment of any other tenant in the Project or the Building of which the Premises are a part. Lessee, at Lessee’s sole cost and expense, agrees to do all things necessary to: 
  

	 	1.	 	maintain the Premises in a clean, neat, sanitary and safe manner; 

	 	2.	 	to repair and maintain the interior of the Premises forming all or part of the Building in compliance and conformity with all municipal, state, federal laws and ordinances, and with
the requirements of any other governmental board or authority, present or future, in any way relating to the condition, use or occupancy of the Premises throughout the entire term of this Lease and to the perfect exoneration from liability of
Lessor, 

	 	3.	 	or if due to Lessee’s specific use of the Premises any governmental authority requires alterations, Lessee shall make such alterations at its sole cost and expense.

  
 The judgment of any court or the admission of
Lessee in any action or proceeding against Lessee, whether Lessor be a party thereto or not, that Lessee has violated any such law, ordinance, requirement or order in the use of the Premises, shall be conclusive of that fact between Lessor and
Lessee. 
  
 Lessee shall keep at the Premises, and maintain in
good working condition, a sufficient number of fire extinguishers as determined by the Novato Fire Department or other agency of authority in this regard. 
  
 Lessee shall not, without prior written consent from Lessor, use any common area of the Project or Building(s) for any purpose not specifically granted in
this Lease and Attachments (if any). 
  

	6.	 	ACCEPTANCE OF PREMISES BY LESSEE: 

  
 Lessor shall deliver the Premises in “broom-clean” good condition and repair upon the Commencement Date, including, without limitation,
building systems (HVAC, fire life safety, mechanical, electrical, plumbing, elevators) and structural elements (roof, foundation, load bearing and exterior walls) and in compliance with applicable laws and governmental regulations (including without
limitation, the Americans with Disabilities Act of 1990). Lessee has examined the Premises as of the date of this Lease and acknowledges and covenants to Lessor that same is in the condition represented by Lessor and fit and suitable for the use and
purpose demised. Lessee hereby accepts the Premises “AS IS”, subject to the terms of this Lease. 
  

	7.	 	RENT: 

  

	 	a.	 	Starting with the commencement date of this Lease, Lessee shall pay to Lessor the Base Monthly Rent as indicated in the Basic Lease Information. The Base Monthly Rent shall be paid
on the first (1st) day of each month during the term thereof without notice, demand or any offset, and shall be paid
in lawful money of the United States. Lessee shall pay to Lessor one month’s Base Monthly Rent upon execution of this Lease, which shall be applied to the first (1st) month rent due hereunder. 

  

	 	b.	 	If the commencement date does not fall on the first (1st) of the month, or if Lessee with Lessor’s consent occupies the Premises prior to the commencement date, Lessee shall pay to Lessor rent for the first month of the term, prorated at 1/30th of the Basic Monthly Rent thereof per day. In this case, Lessee’s anniversary date shall be considered to be the first (1st) day of the month immediately following occupancy. 

  

 3 

	 	c.	 	The Basic Monthly Rent hereunder shall be increased during the term of the Lease as hereinafter provided, but in no event shall any adjustment to rent result in a reduction below
the initial Basic Monthly Rent or any subsequently determined rent, whichever is higher. 

	 	d.	 	Rent shall be payable to Lessor at the address listed on the Basic Lease Information or to such other person(s) or at such other place(s) as Lessor may designate in writing.

  

	8.	 	COST OF LIVING ADJUSTMENT: 

  

	 	a.	 	On each and every anniversary following the commencement of this Lease, the Basic Monthly Rent shall be adjusted for the ensuing twelve (12) months by the proportion that the
Consumer Price Index All Items, All Urban Consumers in the San Francisco Bay Area, of the U.S. Department of Labor, Bureau of Labor Statistics, then most recently published, bears to the Consumer Price Index All Items, All Urban Consumers in the San
Francisco Bay Area most recently published prior to the previous anniversary. 

	 	b.	 	Should the U.S. Department of Labor discontinue its computation and publication of said Consumer Price Index or the publication thereof should be delayed so as to prevent its use
hereunder at the times required, there shall be substituted therefor by Lessor such other index or method of ascertaining changes in the price levels as, in the opinion of the Lessor, most closely resembles the Consumer Price Index and method of
arriving at the index figure by said Bureau. 

	 	c.	 	The annual increase shall be not less than 3% nor more than 6%. 

  

	9.	 	OPERATING EXPENSES: 

  
 Lessee shall pay to Lessor in addition to the Basic Monthly Rent during the term hereof, Lessee’s share of all Operating Expenses, as hereinafter
defined, during each month of the term of this Lease. “Lessee’s share” is defined, for the purposes of this Lease, as the percentage determined by division of Lessee’s Premises square footage divided by the rentable square
footage of the Project. As of the Commencement Date, “Lessee’s Share” is 100%. As improvements, additions and deletions may affect the Project square footage, and/or Lessee may add space, this percentage may change from time to
time. “Operating Expenses” is defined, for the purposes of this Lease, as all costs incurred by Lessor, including, but not limited to: 

	 	a.	 	the operation, repair and maintenance in neat, clean, good order and condition, of the common areas, including, but not limited to parking areas, loading and unloading areas, trash
enclosures, roadways, sidewalks, parkways, driveways, landscaped areas, striping, irrigation systems, common area lighting, fences and gates; 

	 	b.	 	Fire detection systems, including sprinkler maintenance, monitoring and repair; 

	 	c.	 	Project management fees; 

	 	d.	 	The cost of premiums for liability, property and business income insurance policies elsewhere described in this Lease to be responsibility of Lessor and any deductible portion of an
insured loss covered by said policies; 

	 	e.	 	Utility services to the Common Areas; 

	 	f.	 	Capital expenditures such as roofing, HVAC replacement, and parking lot resurfacing, etc. pro-rated over their useful life as reasonably determined by Lessor utilizing generally
accepted accounting principles and procedures (“GAAP”); 

	 	g.	 	The prorata portion of a maintenance contract for the HVAC, 

	 	h.	 	All costs relating to Lessor’s employees for the Project; 

	 	i.	 	Other costs connected with the operation and maintenance of the Project. 

  
 The inclusion of the improvements, facilities and services set forth above shall not be deemed to impose an obligation upon Lessor to either have or
provide said improvements, facilities or services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them. 
  
 Lessor shall maintain the Common Areas and other areas of the Project for
which Lessor is responsible in good condition and repair as determined by Lessor in Lessor’s good faith and reasonable determination. The manner and method of operation, maintenance, upkeep and repair thereof, however, shall be at
the sole and absolute discretion of Lessor, and all costs incurred in connection therewith by Lessor in good faith shall conclusively and finally bind Lessee. 
  

Lessee’s share of Operating Expenses shall be payable by Lessee within five (5) days after a statement of expenses is presented to Lessee by
Lessor. At Lessor’s option, however, an amount may be estimated by Lessor from time to time of Lessee’s share of Operating Expenses, which estimate shall be due within five (5) days after such estimate is presented to Lessee by Lessor.
Lessor shall prepare and present to Lessee an actual statement of expenses as soon as is practical after such estimate has been presented, and shall credit Lessee any over-charge or bill any short-charge as may be actually due. Lessee shall have
the right to request, in writing, copies of bills, invoices, and statements supporting any Operating Expenses billed, but not provided to Lessee with such bill, and Lessor shall provide such documentation not previously provided within thirty (30)
days of receipt of such request which shall indicate Lessee’s share of each such bill, invoice or statement. 
  
 The following items shall be excluded from Operating Expenses: 

	 	a.	 	depreciation or payments of principal and interest on any mortgages upon the Buildings or Project, 

	 	b.	 	payments of ground rent pursuant to any ground lease covering the Project, 

	 	c.	 	the cost of utilities or services paid for directly by Lessee, 

	 	d.	 	any cost expressly excluded from Operating Expenses in an express provision contained in this Lease, 

	 	e.	 	costs resulting from Lessor’s violation of this Lease, 

  

 4 

	 	f.	 	any of Lessor’s general overhead, and administrative costs, which are not directly related to the operation of the Premises or the Project, 

  

	 	g.	 	costs resulting from any gross negligence or willful misconduct of Lessor or its employees or parties for which Lessor is responsible, 

  

	 	h.	 	any costs for which Lessor is reimbursed by any lessee or occupant of the Project or by insurance carried by Lessor, Lessee or any other party, or covered by any warranty to the
extent such amounts are actually received by Lessor, 

  

	 	i.	 	the cost of services separately charged to and paid by any other lessee of the Project. 

  

	 	j.	 	Charitable or political contributions. 

  

	 	k.	 	costs incurred in developing, expanding, constructing, demolishing or reconstructing any tenant space or buildings in the Project other than the Premises, including, without
limitation, architectural fees, engineering fees, space planning fees, construction costs, and attorney and other professional fees. 

  

	10.	 	UTILITIES: 

  
 Lessee shall pay for all water, gas, heat, light, power, telephone and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Lessee,
Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered with other premises. Lessor’s reasonable determination thereof, in good faith, utilizing GAAP, shall be conclusive and shall be
delivered to Lessee in writing. Such written statement from Lessor shall include copies of the jointly metered utilities and shall indicate the percentage charged to Lessee. Such amount shall be payable by Lessee within five (5) days of presentation
of such statement. 
  
 Lessor shall have exclusive right of
selection of power provider to the Premises. However, Lessee may select one or more alternative power providers to the Premises interior provided that: 
  

	 	1.	 	Such alternative power provider(s) are authorized to provide such service within the Sate of California, 

	 	2.	 	Such alternative power provider(s) require NO changes to the equipment which bring power to the Buildings, 

	 	3.	 	Lessee shall notify Lessor, in writing and in advance, of the alternative power provider(s) selected and shall provide Lessor with contact information for the selected
provider(s). 

  
 To the best of Lessor’s
knowledge at the time this Lease is executed, only the landscape irrigation water and power and exterior lighting power are not separately metered. 
  

	11.	 	INSURANCE: 

  

	 	a.	 	Liability Insurance:    Lessee shall, at Lessee’s expense, obtain and keep in force throughout the term of this Lease, beginning upon Lessee taking
possession of the Premises or the Commencement Date, whichever occurs first, and for a period of not less than two years following the expiration of this Lease, a policy or policies of General Liability Insurance insuring Lessor and Lessee against
any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall provide bodily injury, property damage, personal injury, advertising injury, contractual liability and
products-completed operations coverage and shall have combined single limits in an amount not less than $2,000,000 per occurrence or offense. The policy or policies shall provide fire legal liability coverage with limits of at least $1,000,000. The
policy or policies shall also insure the risks assumed by Lessee of the indemnity provisions of Paragraph 15 of this Lease. The limits of said insurance shall not, however, limit or decrease the liability of Lessee hereunder.

  

	 	b.	 	Additional Insured/Primary Insurance:    Lessee will insure that the policy or policies required by subparagraph 11a. name Lessor as an additional insured
and further provide that such insurance shall be primary to, and non-contributory with, any and all insurance maintained by Lessor. Lessee shall provide Lessor with an endorsement to the policy or policies required by subparagraph 11a. substantially
identical to Exhibit “D” to this Lease. 

  

	 	c.	 	Property Insurance:    Lessee shall obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to
its fixtures, equipment, tenant improvements, inventory and other contents stored in the Premises, whether the property of Lessee or anyone else, in the amount of the full replacement value thereof, as the same may exist from time to time. Such
policy or policies shall contain a waiver of subrogation provision specifying that the insurer(s) waives any right of recovery against Lessor to recover any payments made under the policy or policies. 

  

	 	d.	 	Insurance Policies:    Insurance required hereunder shall be in companies holding a “General Policyholders Rating” of at least “A”, or
such other rating as may be required by a lender having a lien on the Premises, as set forth in the most current issue of “Best’s Insurance Guide”. The insuring party shall deliver to the other party copies of policies of such
insurance or certificates evidencing the existence and amounts of such insurance with loss payable clauses as required by this Paragraph. No such policy shall be cancelable or subject to reduction of coverage or other modification except after
thirty (30) days prior written notice to Lessor. If Lessee is the insuring party, Lessee shall, at least thirty (30) days prior to the expiration of such policies, furnish Lessor with renewals or binders thereof, or Lessor may, at Lessor’s sole
option and discretion, order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee immediately upon demand. 

  

	 	e.	 	Waiver of Claims and Right of Subrogation:    Lessor shall not be liable to Lessee, nor shall Lessor be liable to any person claiming under Lessee by
lease, license, assignment or subrogation by operation of law or contract, or upon the Premises with the express, implied or constructive consent of Lessee, or for any loss of, or damage to or the destruction of the Premises, or some part or parts
thereof, or any goods, furniture, fixtures or equipment thereon, for the interruption of any business, or for any injury to the person (including wrongful death) 

  

 5 

	 	  	 	or property of the Lessee or to any such persons claiming under Lessee, resulting from any cause whatsoever, including without limitation the sole negligence of Lessor, any broken
pipe, water seepage, blocked drain, defective wiring, interruption in power, malfunction of any air conditioning, plumbing system, sewer, storm drain or the like. 

  

	 	f.	 	Fire and Extended Coverage Insurance: At all times from and after the date of commencement of this Lease, Lessor shall keep the Building of which the Premises are a part, but
not the contents of the Premises or any property of Lessee or others, insured for the mutual benefit of Lessor and Lessee against (i) loss or damage by fire and such other risks as may be included in a standard form of Extended Coverage Insurance
from time to time available, in amounts sufficient to prevent Lessor or Lessee from becoming a co-insurer within the terms of the applicable policies and, in any event, in an amount not less than one hundred percent (100%) of the then full
replacement value of the Building, together with an addendum thereto providing for six (6) months rental income coverage payable to Lessor, (ii) loss or damage from leakage of sprinkler systems now or hereafter installed in the Building by Lessor in
such amount as Lessor shall reasonably establish, and (iii) loss or damage resulting from explosion of steam boiler, air conditioning equipment, pressure vessels or similar apparatus, now or hereinafter installed in or on the Building by Lessor, in
such amount as Lessor shall reasonably establish. 

  

	 	g.	 	Notice by Lessee: Lessee agrees to give prompt written notice to Lessor with respect to all events occurring upon the Premises which may be the subject of claims on insurance
policies, whether policies are being maintained by Lessor or Lessee. 

  

	12.	 	TAXES: 

  

	 	a.	 	Definition of “Real Property Tax”: As used herein the term “real property tax” shall include any form of real estate tax or assessment, general, special,
ordinary or extraordinary, and any license, fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or estate taxes) imposed on the Premises by any authority having the direct or indirect power to
tax including any city, state or federal government or any school, agricultural, sanitary, fire, street, drainage, lighting or other improvement district thereof, as against any legal or equitable interest of Lessor in the Premises or in the real
property of which the Premises are a part, as against Lessor’s right to rent or other income therefrom, and as against Lessor’s business of leasing the Premises. The term “real property tax” shall also include any tax, fee, levy,
assessment or charge (i) in substitution of, partially or totally, any tax, fee, levy, assessment or charge hereinabove included within the definition of “real property tax”, or (ii) the nature of which was hereinabove included within the
definition of “real property tax”, or (iii) which is imposed for a service or right not charged prior to June 1, 1978, or, if previously charged, has been increased since June 1, 1978, or (iv) which is imposed as a result of transfer,
either partial or total, of Lessor’s interest in the Premises or which is added to a tax or charge hereinabove included within the definition of “real property tax” by reason of such transfer, or (v) which is imposed by reason of this
transaction, any modification or changes hereto, or any transfers thereof. 

  

	 	    	 	There shall be excluded from real property taxes all income taxes, capital stock, inheritance, estate, gift, or any other taxes imposed upon or measured by Lessor’s gross
income or profits unless the same is specifically included within the definition of real property taxes above or otherwise shall be imposed in lieu of real estate taxes or other ad valorem taxes. For example, assessment district fees would be
included in real property taxes as items imposed in leiu of real estate taxes. 

  

	 	b.	 	Joint Assessment: If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the real property taxes for all of the land and
improvements included within the tax parcel assessed, such proportion to be determined by Lessor from such information as may be reasonably available. Lessor’s determination thereof, in good faith, shall be conclusive. Lessee shall pay such
proportion to Lessor within five (5) days of receipt of Lessor’s written notice thereof. 

  

	 	c.	 	Personal Property Taxes: Lessee shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal
property of Lessee contained in the Premises or elsewhere as it may affect the Project. When possible, Lessee shall cause said trade fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real
property of the Lessor. If any of Lessee’s personal property shall be assessed with Lessor’s real property, Lessee shall pay the taxes attributable to Lessee within five (5) days of receipt of written notice thereof from Lessor or taxing
entity. 

  

	13.	 	REPAIRS: 

  

	 	a.	 	Repairs by Lessee: Lessee agrees at its sole cost and expense to maintain, repair and keep the interior of the Premises forming a part of the Building, and all appurtenances
(including without limitation wiring, plumbing, sewage system, heating and air cooling installation, all glazing and doors in or bordering the Premises and any store front) in good condition and repair during the term of this Lease, excepting only
the foundations and structural portions of the Premises, damage thereto by fire, earthquake, civil insurrection and act of God or the elements. Upon request from Lessor, Lessee shall provide Lessor with evidence satisfactory to Lessor of
Lessee’s maintenance contracts and invoices of repair. In the event Lessee fails to make the repairs required of Lessee within thirty (30) days from delivery of Lessor’s notice to Lessee to make such repairs (provided, however, that in
the event the repairs reasonably require more than thirty (30) days to accomplish, Lessee shall not be in default, and Lessor shall not avail itself of any of Lessor’s remedies relating to the required repairs, if within such thirty (30) day
period, Lessee commences such repairs and thereafter diligently prosecutes the same to completion, and provides Lessor with satisfactory proof thereof), Lessor, in addition 

  

 6 

	 	    	 	to all other remedies available hereunder or by law, and without waiving any said alternative remedies, may make same and Lessee agrees to repay Lessor the cost thereof, plus ten
percent (10%) of costs for Lessor’s administration expenses, within five (5) days of delivery of Lessor’s demand thereof. Failure by Lessee to pay same shall carry with it the same consequences as failure to pay any installment of rent.
Lessee agrees during the full term of this Lease, at its sole cost and expense, to make all repairs and replacements of whatever kind or nature, to either the interior or exterior of the Premises, rendered necessary by reason of any act or omission
of Lessee or its agents, servants or employees. Lessee waives all rights to make repairs at the expense of Lessor as provided for in any statute or law in effect at the time of the execution of this Lease or any amendment thereof or any other
statute or law which may be hereafter enacted during the term of this Lease, or sooner termination hereof, and to surrender unto Lessor the Premises in the same condition as received, ordinary wear and tear and damage by fire, earthquake, civil
insurrection, act of God or the elements alone excepted. 

  

	 	b.	 	Repairs by Lessor: Lessor agrees, after receipt of written notice of the necessity therefor, and should same not be caused by Lessee or by reason of Lessee’s
occupancy or improvements, alterations, changes or modifications to the Premises (responsibility for such repairs to be that of Lessee), to initiate necessary repairs to the fire sprinkler system, foundations and other structural portions of
the Premises forming a part of the Building, the common areas, the roof, exterior walls, parking areas, landscaping, wiring to the Building, plumbing and sewage system exterior to the Premises, within thirty (30) days or as soon as is reasonably
practical. 

  

	14.	 	ALTERATIONS; LIENS; PERMITS: 

  

	 	a.	 	Except with respect to the Initial Interior Improvements and Initial Exterior Improvements as set forth in Paragraphs 49 and 50, the construction of which shall be pursuant to
the provisions of Paragraphs 49 and 50 (and not pursuant to this Paragraph 14), Lessee agrees not to make any structural alterations of, changes in or additions to the Premises. Lessee agrees not to make any non-structural alterations of,
changes in or additions to the Premises without the prior written consent of Lessor. Lessee shall be required to submit plans, specifications and a budget, as well as the name, address and license number of the general contractor performing the
work, along with the application for Lessor’s consent. Notwithstanding the foregoing, Lessee agrees and acknowledges that (a) Lessor’s approval does not mean that such work is required under the Lease or has been requested by Lessor, and
(b) such work will not materially enhance the value of Lessor’s property. Lessee shall provide Lessor with an estoppel statement, in a form approved by Lessor, from each of their contractors and/or sub-contractors, etc. stating that each of
them agrees that Lessor has validly posted a Notice of Non-responsibility, that Lessor is NOT a participating owner (i.e., Lessee is not an agent of Lessor in performing any alterations, changes, additions or improvements. Such work is not a
requirement of the Lease and does not materially enhance the value of Lessor’s property.) and that all lien rights against Lessor/owner are waived and released. Lessee’s failure to provide such estoppels shall constitute reasonable cause
for Lessor to withhold approval of the contractor and/or sub-contractors, and NO work may commence unless/until Lessor approves. Lessee agrees that all non-structural alterations, changes, additions and improvements, including fixtures, made in, to
or on the Premises, except unattached movable business fixtures, shall be removed by Lessee at Lessee’s sole cost on or before the termination of the Lease, and the Premises restored to substantially the same condition as existed prior to the
Lease. If requested by Lessee in writing at the time of any request for Lessor’s approval of Lessee’s proposed work in and to the Premises, Lessor may agree in its sole discretion (and only in writing) to allow such alterations, changes,
additions or improvements to be surrendered to Lessor at the termination of this Lease, but only subject to Lessee’s written agreement that such items have been surrendered to Lessor so that Lessee may avoid the expense of removing the same,
and that such additions, changes, alterations or improvements do not materially enhance the value of Lessor’s property. Lessee agrees that if any such alterations, changes, additions or improvements are approved by Lessor, Lessee shall take all
steps necessary to assure the completion of same in a good and workmanlike manner and in compliance with applicable code, and shall, at Lessee’s sole cost and expense, secure any permits or licenses which may be required by government agency.
Lessee further agrees to pay for any and all taxes levied upon such alterations, changes, additions or improvements, where such taxes are levied by a duly authorized government entity. 

  

	 	b.	 	Lessee agrees that no such alterations, changes, additions or improvements will commence until seven (7) days after Lessee’s receipt of written consent of Lessor as required by
this Paragraph in order that Lessor may post appropriate notices to avoid liability on account thereof. Lessee shall also give Lessor written notice of the actual start of construction of each component of the work (i.e., each separate trade or
subcontractor’s work) within 48 hours after such construction commences to permit Lessor to post Notices of Non-responsibility. Lessee agrees to indemnify and save harmless Lessor from all liens, claims or demands arising out of any work
performed, materials furnished or obligations incurred by or for Lessee upon the Premises during the entire term of this Lease, and agrees not to suffer any such lien or other lien to be created. 

  

	 	c.	 	Notwithstanding anything contained herein to the contrary, Lessee shall have the right to make non-structural alterations, changes or additions to the Premises for which a
building or other permit is not required without Lessor’s written approval, and without submitting plans, specifications and budget in connection therewith. Lessee shall, however, timely provide Lessor with sufficient information in writing
that Lessor shall be able to prepare and post notices of non-responsibility in connection therewith, and Lessee shall otherwise follow the other requirements of this Paragraph 14 in connection with such alterations, changes or additions. Lessee
shall, if requested, provide Lessor with updated plans or specifications on completion of any such work. 

  

 7 

	15.	 	RELATIONSHIP OF THE PARTIES: 

  
 Neither Lessor nor Lessee intends that any relationship exists between them other than that of Lessor and Lessee under this Lease. No relationship as
partners, co-venturers or principal and agent is formed other than as specifically set forth in the Lease. Specifically, and with regard to tenant improvements performed by Lessee’s contractors and/or sub-contractors, Lessor is not a
participating owner and claims no ownership interest in such tenant improvements (i.e. Lessee is not an agent of Lessor in performing any alterations or improvements. Such work is not a condition of the Lease and does not materially enhance the
value of Lessor’s property). 
  

	16.	 	HOLD HARMLESS: 

  
 This Lease is made upon the express condition that Lessee agrees to indemnify, keep save and hold Lessor free and harmless from all liability, penalties,
losses, damages, costs, expenses, causes of action, claims and/or judgments arising by reason of any injury or damage to any person or persons, including without limitation, Lessee, its invitees, servants, agents and employees, or property of any
kind whatsoever and to whomsoever belonging, including, without limitation, Lessee, its invitees, servants’, agents’ and employees’, from any cause or causes whatsoever, excepting the gross negligence or willful
misconduct of Lessor, while in, upon, or in any way connected with said demised Premises or the Building or Project of which the Premises are a part, or its appurtenances, or the sidewalks adjacent thereto, during the term of this Lease or any
occupancy hereunder, Lessee hereby covenants and agrees to defend, indemnify, protect and save Lessor harmless from all liability, loss, costs and obligations on account of or arising out of any such claims, injuries or losses, however occurring,
excepting those that are a result of Lessor’s gross negligence or willful misconduct. In the event of any breach by Lessee of any of the requirements of Paragraph 11 Insurance, then Lessee’s indemnity obligations shall be
extended to include any benefits to which Lessor would have been entitled under the policy or policies described in Paragraph 11 Insurance, and Lessee shall be obligated to provide Lessor with all of the benefits that would have been furnished under
such policy or policies, and Lessee shall assume all of the obligations of an insurer under such policy or policies in addition to any other remedy available to Lessor, either provided in this Lease or by law. Lessee, as a material part of the
consideration to be rendered to Lessor, hereby waives all claims against Lessor for damages to goods, wares and merchandise in, upon or about the Premises and for injuries to Lessee, his agents or third persons in or about the Premises from any
cause arising at any time including, without limiting the generality of the foregoing, damages arising from the sole negligence of Lessor, from acts or omissions of other tenants of the Building or Project of which the Premises are a part and from
failure of Lessor to make repairs. 
  
 Lessor shall indemnify,
protect, defend and hold Lessee (and Lessee’s invitees, servants, agents, employees and contractors) harmless from and against any and all claims, demands, actions, obligations, losses, liabilities, damages, costs, and expenses incurred by or
asserted against Lessee in connection with any claim, action, or demand for bodily injury or death or property damage arising out of any gross negligence or willful misconduct of Lessor or any of Lessor’s employees or officers occurring on or
about the Common Areas, the Buildings or the Project; provided, however, that the foregoing shall not apply to the extent of any gross negligence or willful misconduct of Lessee (or Lessee’s invitees, servants, agents, employees or
contractors). Lessor’s obligations and Lessee’s obligations under this Paragraph 16 shall survive the expiration or earlier termination of this Lease. 
  

	17.	 	ENTRY AND INSPECTION: 

  
 Lessee agrees that Lessor and his agents may enter upon the Premises to inspect same, to submit them to a prospective purchaser, lender or lessee or to
make any changes, alterations or repairs which Lessor shall consider necessary for the protection, improvement or preservation thereof, or of the Building in which the Premises are situated, or to make changes in the plumbing, wiring, meters or
other equipment, fixtures or appurtenances of the Building, or to post any notice provided for by law, or otherwise to protect any and all rights of Lessor. Lessor shall provide Lessee reasonable notice of intent to enter, except in case of
emergency. Lessor shall have the right to erect and maintain all necessary or proper scaffolding or other structures for the making of such changes, alterations or repairs (provided the entrance to the Premises shall not be blocked thereby and that
such work shall be completed with diligence and dispatch) and there shall be no liability against Lessor for damages thereby sustained by Lessee, nor shall Lessee be entitled to any abatement of rent by reason of the exercise by Lessor of any such
rights herein reserved. Nothing herein contained shall be construed to obligate Lessor to make any changes, alterations or repairs. Notwithstanding anything contained in this Paragraph 17 to the contrary, Lessor shall coordinate the work which
Lessor undertakes in the Premises with Lessee, and use reasonable efforts to minimize interference with Lessee’s use of the Premises or the conduct of Lessee’s business, except in case of emergency. Lessee further agrees that at any
time after nine (9) months prior to the termination of this Lease, Lessor may place thereon “To Let” or “To Lease” signs. 
  

	18.	 	EASEMENTS: 

  
 Lessor reserves to itself the right, from time to time, to grant such easements, rights and dedications that Lessor deems necessary or desirable and to cause the recordation of parcel maps and restrictions, so long as
such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee shall sign any of the aforementioned documents upon request of Lessor and failure to do so in a timely manner
shall constitute a material breach of this Lease. 
  
 Notwithstanding anything contained herein to the contrary, Lessee shall have no obligation to execute any such documents if the effect of such documents would materially and adversely effect Lessee’s use or quiet enjoyment of the
Premises pursuant to the terms of the Lease. In such event, Lessee shall notify Lessor in writing and within a reasonable time of such material and adverse effects and the parties shall cooperate with each other in good faith to attempt to achieve a
mutually satisfactory resolution. 
  

 8 

	19.	 	ESTOPPELS: 

  
 Lessee agrees, at any time and from time to time within seven (7) days of written request from Lessor to execute, acknowledge and deliver to Lessor a statement in writing certifying that this Lease is unmodified and
in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified, and stating the modifications) and the dates to which rent and other charges have been paid in advance, if any, and any other
matters reasonably requested by Lessor, it being intended that any such statement delivered pursuant to this Paragraph may be relied upon by any present or perspective purchasers, mortgagee or assignee(s) of any mortgagee of the Premises. Failure of
Lessee to comply with any and all provisions of this Paragraph shall constitute a breach of the Lease. 
  
 Lessor agrees, at reasonable times and intervals, but not more than twice per year, within fourteen (14) business days of receipt of written request
from Lessee to execute, acknowledge and send to Lessee a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified, and
stating the modifications) and the dates to which rent and other charges have been paid in advance, if any, it being intended that any such statement delivered pursuant to this Paragraph may be relied upon by the party requesting such estoppel.
Notwithstanding the foregoing, such estoppel shall not contain any subordination terms or conditions obligating Lessor to subordinate any interest of Lessor in the Project, the Premises or the Lease. 
  

	20.	 	MULTIPLE TENANT BUILDING: 

  
 In the event that the Premises are a part of a larger building or group of buildings, Lessee agrees that it will abide by, keep and observe all reasonable
rules and regulations which Lessor may make from time to time, including but not limited to the management, safety, operation, care and cleanliness of the Building and grounds, the parking of the vehicles and the preservation of good order therein
as well as for the convenience of other occupants and tenants of the Project. Violation of any such rules and regulations shall be deemed a breach of this Lease by Lessee. 
  

	21.	 	SIGNS: 

  
 Lessee agrees not to inscribe, paint or affix any signs, advertisements, placards or awnings on the exterior or roof of the Premises or upon the entrance doors, windows, monuments, or the sidewalk on or adjacent to
the Premises without the written consent of Lessor first obtained. Any signs so placed on the Premises shall be so placed upon the understanding and agreement that Lessee will remove same at the termination of tenancy herein created and repair any
damage or injury to the Premises caused thereby, and if not so removed by Lessee, then Lessor may have same so removed at Lessee’s expense. Lessee shall not be allowed to use the name of the Project, or words to such effect in connection with
any business carried on in the Premises (except as the address of the Lessee) without the written consent of Lessor. Lessor reserves the right to change the name and title of the Project and Building at any time during the term of said Lease. Lessee
hereby expressly agrees to such change at the option of Lessor and waives any and all damage occasioned thereby. 
  

	22.	 	ABANDONMENT: 

  
 If Lessee should abandon or surrender Premises or be dispossessed by process of law, in addition to all other remedies of Lessor, Lessor, at its option, may deem that any personal property belonging to Lessee left on
the Premises is abandoned and/or Lessor may at once enter upon the Premises and remove therefrom any and all equipment, fixtures and merchandise therein and may sell same at public or private sale at such price and upon such terms as Lessor may
determine, without notice to or demand upon Lessee. Out of the proceeds of such sale Lessor may reimburse itself for the expense of such taking, removal and sale and for any indebtedness of Lessee to Lessor and the surplus, if any, shall be
accounted for to Lessee at Lessee’s last known address. 
  

	23.	 	DESTRUCTION; RENEWAL: 

  

	 	a.	 	In the event of damage or destruction to the Premises during the term hereof which Lessor is obligated to repair by the terms of this Lease, Lessor shall forthwith repair the same,
provided such repairs can be made within ninety (90) days under the laws and regulations of State, Federal, County or Municipal authorities, but such destruction shall in nowise annul or void this Lease, except that Lessee shall be entitled to a
proportionate reduction of rent to be based upon the extent to which the making of such repairs shall interfere with the business carried on by Lessee in the Premises. If such repairs cannot be made within ninety (90) days, Lessor may, at its
option, make same within a reasonable time, in which event this Lease shall continue in full force and effect and the monthly rent shall be proportionately reduced as aforesaid in this Paragraph provided. In the event that Lessor does not so elect
to make such repairs which cannot be made within one hundred eighty (180) days, this Lease may be terminated at the option of either party. In the event that the Building of which the Premises are a part is damaged or destroyed to the extent of
one-third (33.33%) or more of the replacement cost thereof, Lessor may elect to terminate this Lease, whether the Premises be injured or not, provided, however, if Lessee so requests (except if the Lease is in the final twelve (12) months of its
initial term) (I) if there are adequate insurance proceeds available to restore the Premises, then Lessor shall restore the Premises, and (ii) if there are insufficient insurance proceeds available to restore the Premises, but Lessee agrees to, and
does, provide funds required in addition to the insufficient insurance proceeds to restore the Premises, then Lessor shall restore the Premises, or allow Lessee to restore the Premises at no cost to Lessor; provided further that Lessor shall assign
or deliver the insurance proceeds to Lessee if Lessee is restoring the Premises and the insurance proceeds are payable to Lessor (but not to Lessee) under the applicable insurance policy or policies. If more than one-third (33.33%) of the Premises
are damaged or destroyed, and repairs cannot be made within one hundred-eighty 

  

 9 

	 	    	 	(180) days, Lessee may, at its option, elect to terminate this Lease and shall notify Lessor of such election in writing. 

  

	 	b.	 	Notwithstanding anything herein to the contrary, if, at any time during the term hereof, any governmental agency having jurisdiction over the Premises of Building(s) of which the
Premises are a part, shall require the making of any repairs, improvements or alterations to said Building(s) or Premises, and Lessor determines to demolish said Building(s) or Premises rather than to make said repairs, improvements or alterations,
or allow same to be made, Lessor, upon written notice to Lessee as soon as is practical, shall have the right to terminate this Lease. Upon the date specified in such notice, this Lease shall terminate and Lessor shall have no further liability to
Lessee except that Lessor shall refund to Lessee any unearned rents and shall return the balance of security deposit after such offsets as may be provided in this Lease. In the event Lessor had heretofore given written consent to any leasehold
improvements upon the Premises made and paid for by Lessee, and had agreed, in writing, as to the cost thereof, Lessor shall pay to Lessee upon such termination the unamortized portion of such cost as the number of full calendar months remaining in
the original term of this Lease bears to the total number of calendar months is said original term. 

  

	24.	 	CONDEMNATION: 

  
 If any part of the Premises or of the Building of which same are a part (even if no part of the Premises be taken) be condemned for a public or
quasi-public use by right of eminent domain, with or without litigation, or transferred by agreement in connection with such public or quasi-public use, this Lease, as to the part so taken, shall terminate as of the date title shall vest in the
condemnor, and the rent payable hereunder shall be adjusted so that the Lessee shall be required to pay for the remainder of the term only such portion of rent as the value of the part remaining after condemnation bears to the value of the entire
Premises at the date of condemnation. In such event Lessor shall have the option to terminate this Lease as of the date when title to the part so condemned vests in the condemnor. If more than one-third (33.33%) of the Premises is taken, Lessee at
Lessee’s option to be exercised in writing within ten (10) days after Lessor shall have given written notice to Lessee of such taking (or in absence of such notice, within ten (10) days after the condemning authority shall have taken possession
or title), terminate this Lease as of the date the condemning authority takes such possession or title. 
  
 All compensation awarded upon such condemnation or taking shall belong and be paid to Lessor and Lessee shall have no claim thereto, and Lessee hereby
irrevocably assigns and transfers to Lessor any right to compensation or damages to which Lessee may become entitled during the term hereof by reason of the condemnation of all or part of the Premises. 
  
 Notwithstanding anything contained herein to the contrary, if any award
includes amounts specifically allocated to Lessee’s personal property, fixtures or equipment, then Lessee shall be entitled to that portion of such award, less costs and fees reasonably incurred by Lessor in recovering such amounts (if Lessor
is not otherwise compensated for such costs and fees as part of the award). Further, nothing contained herein shall prohibit Lessee from instituting its own claim for compensation against the governmental agency in the event of condemnation, in the
event Lessor does not claim compensation on account of Lessee’s property. 
  

	25.	 	SALE OF PREMISES: 

  
 In the event of a sale or conveyance by Lessor of the Premises, the same shall operate to release Lessor from any future liability upon any of the
covenants or conditions, express or implied, herein contained in favor of Lessee, and in such event Lessee agrees to look solely to the responsibility of the successor in interest of Lessor. If any security be given by Lessee to secure faithful
performance of Lessee’s covenants in this Lease or any rent shall have been prepaid, Lessor may transfer same as such to the purchaser of the reversion thereon and thereupon Lessor shall be discharged from any further liability in reference
thereto. 
  
 In the event of such sale, if Lessor does not
transfer such security or prepaid rent remaining from that paid or provided by Lessee after deduction of amounts owing to Lessor by Lessee as provided in this Lease, if any, then Lessee shall not be liable to the successor in interest for
replacement of such remaining security or rent not transferred, and Lessee may exercise its legal and equitable remedies in connection therewith if the same is not returned to Lessee at the termination or expiration of this Lease as and to the
extent required by this Lease. 
  

	26.	 	COSTS OF SUIT: 

  
 Lessee agrees that if Lessor is involuntarily made a party defendant to any litigation concerning this Lease or the Premises by reason of any act or
omission of Lessee and not because of any act or omission of Lessor, then Lessee shall hold Lessor harmless from all liability by reason thereof, including reasonable attorney’s fees incurred by Lessor in such litigation and all court costs. If
legal action be brought by either party hereto for the unlawful detainer of the Premises, for the recovery of any rent due under the provisions of this Lease, or due to any breach of any term, covenant, condition or provision thereof, the party
prevailing in said action (Lessor or Lessee as the case may be) shall be entitled to recover from the party not prevailing court costs and a reasonable attorney’s fee which shall be fixed by the Judge of the Court. The entry of a dismissal
without prejudice shall not create a prevailing party. 
  
 Lessor agrees that if Lessee is involuntarily made a party defendant to any litigation concerning this Lease or the Premises by reason of an act or omission that is solely attributable to Lessor or parties for which Lessor is
responsible, and not because of any act or omission of Lessee or any third party for which Lessor is not responsible, then Lessor shall hold Lessee harmless from all liability by reason thereof, including reasonable attorney’s fees incurred by
Lessee in such litigation and all court costs. 
  

 10 

	27.	 	SECURITY MEASURES: 

  
 Lessee hereby acknowledges that the rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that
Lessor has no obligation whatsoever to provide it. Lessee assumes all responsibility for the protection of Lessee, its agents and invitees, the Premises and any property on the Premises from acts of third parties. 
  

	28.	 	PERFORMANCE UNDER PROTEST: 

  
 If at any time a dispute shall arise as to any amount or sum of money to be paid by one party to the other under the provisions hereof, the party against
whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment, and there shall survive the right on the part of said party to institute
suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said party to pay such sum or any part thereof, said party shall be entitled to recover such sum or so much thereof as it was not legally
required to pay under the provisions of this Lease. 
  

	29.	 	ASSIGNMENT AND SUBLETTING: 

  

	 	a.	 	Lessor’s Consent Required: Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, sublet or otherwise transfer or encumber all or any part of
Lessee’s interest in this Lease or in the Premises without Lessor’s prior written consent. Lessee shall provide Lessor with documentation including, but not limited to the sublease or assignment document, the legal name of the proposed
subtenant/assignee, financial statements for the proposed subtenant/assignee, proposed use of the premises, the type of business to be conducted by proposed subtenant/assignee, estimated cost of Tenant Improvements and commissions, if any,
and any other documentation required by Lessor to make a reasonable determination. ( For the purposes of this section 28 it shall be deemed reasonable for Lessor to deny a tenant, subtenant or assignee to sublet or assign the Premises
at less than the Base Rent payable under this Lease. ) Lessor shall respond to Lessee’s request for consent hereunder in a timely manner. Except as set forth in Subparagraph 29b below, any attempted assignment, transfer, mortgage,
encumbrance or subletting without Lessor’s written consent, which shall not be unreasonably withheld, conditioned or delayed, shall be void and shall constitute a breach of this Lease. 

  

	 	b.	 	Lessee Affiliate: Notwithstanding the provisions of Paragraph 29a above, Lessee may assign this Lease or sublet the Premises, or any portion thereof, to any corporation which
controls, is controlled by or is under common control with Lessee, or to any corporation resulting from the merger or consolidation with Lessee, or to any person or entity which acquires all the assets of Lessee as a going concern of the business
that is being conducted on the Premises, provided in the case of assignment that said assignee assumes, in full, the obligations of Lessee under this Lease. For the purposes of this section, Lessor’s consent shall not be required. However,
Lessee agrees to notify Lessor in writing within five (5) days of such assignment or subletting, which notice shall include the legal name, contact person and contact information, type of business and current financial statements of the Lease
Affiliate. 

  

	 	c.	 	No Release of Lessee: Regardless of Lessor’s consent, no subletting or assignment shall release Lessee of Lessee’s obligation or alter the primary liability of
Lessee to pay the rent and to perform all other obligations to be performed by Lessee hereunder. The acceptance of rent by Lessor from any other person or entity shall not be deemed a waiver by Lessor of any provision hereunder. Consent to one
assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. In the event of default by any assignee of Lessee or any successor of Lessee in the performance of any of the terms hereof, Lessor may proceed directly
against Lessee without the necessity of exhausting remedies against said assignee or sub-tenant. Lessor may or may not consent to subsequent assignments or subletting of this Lease, or amendments or modifications to this Lease with assignees of
Lessee, with or without notifying Lessee, or any successors of Lessee, and without obtaining its or their consent thereto and such action shall not relieve Lessee of liability under this Lease. 

  

	 	d.	 	Attorney’s Fees: In the event Lessee shall assign or sublet the Premises or request consent of Lessor to any assignment or subletting, or if Lessee shall request the
consent of Lessor for any act Lessee proposes to do, then Lessee shall pay Lessor’s attorney’s fees and any other costs incurred in connection therewith. 

  

	 	e.	 	Lessor’s Right of Recapture: If Lessee desires any assignment or subletting pursuant to this Paragraph 29, other than to a Lessee Affiliate, Lessee shall, in writing,
first offer the space to Lessor for recapture under the same terms and rate as Lessee intends to market the space. Lessor shall have fifteen (15) days to accept the space at the terms and rate offered. If Lessor does not accept the space for
recapture, then Lessee may market the space. Should Lessee change the terms or rate of the space, it must again be offered to Lessor, in writing, and Lessor shall have fifteen (15) days to accept or decline the recapture. If Lessor accepts the
offer, it shall do so by mailing written notice of its acceptance to Lessee within fifteen (15) days after Lessor receives Lessee’s offer. Lessee shall be entitled to withdraw its notice of intent to assign or sublet at any time until
Lessor accepts Lessee’s offer. If only a portion of the Premises would be affected by a sublease or assignment, then Lessor shall have the right to reacquire the portion affected. If Lessor elects to reacquire the portion affected under this
provision, Lessee shall be required to provide without charge reasonable and appropriate access to the portion affected and reasonable use of any common facilities. 

  

	 	    	 	Should Lessor decline the recapture and Lessee is successful in locating an approved sub-lessee as provided in this Lease, at a rate greater than the Lease rate, then Lessee
shall pay to Lessor an amount equal to 50% (fifty percent) of the profit, determined after Lessee’s reasonable cost of brokerage commissions and tenant improvements required in connection with such sublease, each month in advance for the
duration of the sub-lease term. 

  

 11 

	30.	 	CONFLICT: 

  

	    	 	Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions, where both
parties have initialed such provisions. 

  

	31.	 	SUBORDINATION: 

  

	 	a.	 	This Lease, at Lessor’s option, shall be subordinate to any ground lease, mortgage, deed of trust, or any other hypothecation or security now or hereafter placed upon the real
property of which the Premises are a part and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. If any mortgagee, trustee or ground lessor shall elect to
have this Lease prior to the lien of its mortgage, deed of trust or ground lease, and shall give written notice thereof to Lessee, this Lease shall be deemed prior to such mortgage, deed of trust or ground lease or the date of recording thereof.

  

	 	b.	 	Lessee agrees to execute any documents required to effectuate an attornment, a subordination, or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease,
as the case may be provided that any such documents contain a non-disturbance provision accepting Lessee’s tenancy under the Lease in the event of execution by the beneficiary(ies) of such documents under their rights under such
documents. Lessee’s failure to execute such documents within seven (7) days after written demand shall constitute a default by Lessee hereunder. 

  

	 	c.	 	Within sixty (60) days from the non-contingent execution of this Lease, Lessor shall use its best efforts to obtain a commercially reasonable non-disturbance agreement
(“Non-Disturbance Agreement”) from the holder of any pre-existing loan secured by the Premises. 

  

	32.	 	SURRENDER OF LEASE: 

  

	    	 	No act or conduct of Lessor, whether consisting of the acceptance of the keys to the Premises, or otherwise, shall be deemed to be or constitute an acceptance of the surrender of
the Premises by Lessee prior to the expiration of the term hereof, and such acceptance by Lessor of surrender by Lessee shall only flow from and must be evidenced by a written acknowledgement of acceptance of surrender by Lessor. The voluntary or
other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger and shall, at the option of the Lessor, terminate all or any existing subleases, or subtenancies or may, at the option of the Lessor, operate as an
assignment to him of any or all such subleases, or subtenancies. 

  

	33.	 	HOLDING OVER: 

  

	    	 	Should Lessee hold over the term hereby created with written consent of Lessor, Lessee shall become a tenant from month to month at one hundred fifty percent (150%) of the rent
payable hereunder for the prior six (6) months, and otherwise upon the covenants and conditions in this Lease contained, and shall continue to be such tenant until thirty (30) days after either party hereto serves upon the other written
notice of intent to terminate such monthly tenancy. Should such termination occur on any day other than the last day of the month, any unearned prepaid rent shall be prorated based on a 30 day month and shall be credited to Lessee’s
account as additional security deposit, to be disbursed according to the provisions of Paragraph 4. 

  

	34.	 	NOTICES: 

  

	    	 	It is agreed between the parties hereto that any notice required hereunder or by law to be served upon either of the parties shall be in writing and shall be delivered personally
upon the other or sent by first class mail, postage prepaid, commercial delivery service or by facsimile, addressed to the addresses listed in the Basic Lease Information or such other address as may be from time to time furnished in writing
by Lessor to Lessee or by Lessee to Lessor, each of the parties waiving personal or any other service than as in this Paragraph provided for. Notice by first class mail shall be deemed to be communicated the second business day from the time of
mailing. Notice by any other means shall be effective upon delivery, or refusal of delivery. 

  

	35.	 	DEFAULTS; REMEDIES: 

  

	 	a.	 	Defaults: The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Lessee: 

	 	1.	 	The abandonment of the Premises by Lessee or assignee or sublessee as applicable. 

	 	2.	 	The failure of Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due. 

	 	3.	 	The failure by Lessee to observe or perform any conditions, covenants or provisions of this Lease to be observed or performed by Lessee, other than described in (i.) above, where
such failure shall continue for a period of seven (7) days after written notice thereof from Lessor to Lessee provided, however, that if the nature of Lessee’s default is such that more than seven (7) days are reasonably required for
its cure, then Lessee shall not be deemed to be in default if Lessee commenced such cure within said seven (7) day period and thereafter diligently prosecutes such cure to completion. 

	 	4.	 	The making by Lessee of any general arrangement or assignment for the benefit of creditors; 

	 	5.	 	The appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where
possession is not restored to Lessee within thirty (30) days; or 

	 	6.	 	The attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease where such
seizure is not discharged within thirty (30) days. Provided, however, in the event that any provision in this Paragraph is contrary to any applicable law, such provision shall be of no force or effect. 

  

 12 

	 	7.	 	The discovery by Lessor that any financial information given to Lessor by Lessee, any assignee of Lessee, any subtenant of Lessee, any successor in interest of Lessee or any
guarantor of Lessee’s obligation hereunder, and any of them, was materially false. 

  

	 	b.	 	Remedies: In the event of any such default or breach by Lessee, Lessor may at any time thereafter, by written notice or demand and without limiting Lessor in the exercise of
any right or remedy which Lessor may have by reason of such default or breach: 

  

	 	1.	 	Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the
Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee’s default including, but not limited to, the cost of recovering possession of the Premises, attorney’s
fees, any real estate commission actually paid, the balance remaining of unamortized tenant improvements, if any, the worth at the time of award by the court having jurisdiction thereof of the unpaid rent which had been earned at the time of
termination; the worth at the time of award of the amount by which the unpaid rent would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; the
worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and any other amount necessary to
compensate Lessor for all the detriment proximately caused by Lessee’s failure to perform his obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. 

	 	2.	 	Maintain Lessee’s right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Premises. In such event Lessor shall be
entitled to enforce all of Lessor’s rights and remedies under this Lease, including the right to recover rent as it becomes due hereunder. 

	 	3.	 	Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the state wherein the Premises are located. Unpaid installments of rent and
other monetary obligations of Lessee under the terms of this Lease shall bear interest from the date due at the maximum rate then allowable by law. 

  

	 	c.	 	Default by Lessor: Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, after written notice by Lessee to
Lessor specifying wherein Lessor has failed to perform such obligations provided, however, that if the nature of Lessor’s obligations is such that more than sixty (60) days are required for performance then Lessor shall not be in default
if Lessor commences performance within such sixty (60) day period and thereafter diligently pursues the same to completion. 

  

	 	d.	 	Late Charges: Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and/or other sums due hereunder will cause Lessor to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Lessor by terms of any mortgage or trust deed
covering the premises. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Lessor (or Lessor’s designee, if applicable) within five (5) days after such amount shall be due, then, without any
requirement for notice to Lessee, Lessee shall pay to Lessor a late charge equal to six percent (6%) of such overdue amount, plus accrued interest at the maximum amount allowable by law. The parties agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s default with respect to such overdue amount, nor prevent Lessor
from exercising any of the other rights and remedies hereunder. In the event that a late charge is payable hereunder, whether or not collected, for three (3) installments of rent or other sum within a twenty-four (24) month period,
then rent shall automatically become due and payable quarterly in advance, rather than monthly, notwithstanding Paragraph 8 or any other provision of this Lease to the contrary. After thirty-six (36) months of timely payments thereafter,
Lessee may apply to Lessor in writing, and Lessor shall approve of Lessee’s right, to return to monthly payments, in advance, as provided in this Lease. 

  

	 	e.	 	Impounds: In the event that a late charge is payable hereunder, whether or not collected, for three (3) installments of rent or any other sum due hereunder within a
twenty-four (24) month period, Lessee shall pay to Lessor, if Lessor shall so request, in addition to any other payments required under this Lease, a monthly advance installment, due on the first (1st) day of each month, as estimated by Lessor for the real property tax, insurance and operating expenses on the Premises which are payable by Lessee under
the terms of this Lease. Such fund shall be established to insure payment when due, before delinquency, of any or all such taxes, premiums and expenses. If the amounts paid to Lessor by Lessee under the provisions of this Paragraph are insufficient
to discharge the obligations of Lessee to pay such taxes, premiums and expenses as the same shall become due, Lessee shall pay to Lessor, upon Lessor’s demand, such additional sums as necessary to pay such obligations. All monies paid to Lessor
under this Paragraph may be intermingled with other monies of Lessor and shall not bear interest. In the event of a default in the obligations of Lessee to perform under this Lease, then any balance remaining from the funds paid to Lessor under the
provisions of this Paragraph may, at the option of Lessor, be applied to the payment of any monetary default of Lessee in lieu of being applied to the payment of taxes, premiums and/or expenses. After thirty-six (36) timely payments thereafter,
Lessee may apply to Lessor in writing, and Lessor shall approve of Lessee’s right, to return to monthly payments as provided in this Lease. 

  

 13 

	36.	 	CUMULATIVE REMEDIES; NON-WAIVER: 

  

	    	 	The receipt by Lessor of any rent or payment with or without knowledge of the breach of any covenant hereof shall not be deemed a waiver of any such breach and no waiver by Lessor
of any sum due hereunder or any provision hereof shall be deemed to have been made unless expressed in writing and signed by Lessor. No delay or omission in the exercise of any right or remedy accruing to Lessor upon any breach by Lessee under this
Lease shall impair such right or remedy or be construed as a waiver of any such breach theretofore or hereafter occurring. The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of
any subsequent breach of the same or any other term, covenant or condition herein contained. All rights, powers, options or remedies afforded to Lessor either hereunder or by law shall be cumulative and not alternative and the exercise of one right,
power, option or remedy shall not bar other rights, powers, options or remedies allowed herein or by law. 

  

	37.	 	ADDITIONAL RENT: 

  

	    	 	Any monetary obligations of Lessee to Lessor under the terms of this Lease shall be deemed to be rent. Any amount due to Lessor, if not paid when due, shall bear interest from the
date due until paid at the maximum amount allowable by law. Payment of interest shall not excuse or cure any default hereunder by Lessee. 

  

	38.	 	INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS: 

  

	    	 	This Lease contains all agreements of the parties hereto with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be
effective. This Lease may be modified in writing only, signed by the parties in interest at the time of the modification. Except as otherwise stated in this Lease, Lessee hereby acknowledges that neither the Lessor nor any employees or agents of any
said persons has made any oral or written warranties or representations relative to the condition or use by Lessee of the Premises and Lessee acknowledges that Lessee assumes all responsibility regarding the Occupational Safety Health Act, the legal
use and adaptability of the Premises and the compliance thereof with all applicable laws and regulations in effect during the term of this Lease except as otherwise specifically state in this Lease. 

  

	39.	 	COMPLIANCE WITH APPLICABLE LAWS: 

  

	    	 	Lessee shall use the Premises in accordance with all applicable laws and government regulations. If any law or government regulation (such as, but not limited to, the Americans With
Disabilities Act of 1990) should require renovation or alteration of the Premises, Lessee shall be responsible for such alteration or renovation and shall pay all costs and expenses required to alter or renovate the Premises to conform to any such
law or governmental regulation. If any law or governmental regulation (such as, but not limited to, the Americans With Disabilities Act of 1990) should require the renovation or alteration of the Common Area(s), Lessor shall be responsible for such
renovation or alteration and shall pay all costs and expenses required to alter or renovate the Common Area(s) to conform to any such law or governmental regulation. All such costs and expenses required to alter or renovate the Common Area(s) to
conform to any such law or governmental regulation shall be included in the Operating Expenses as provided in Paragraph 9 of this Lease. Lessee shall indemnify and defend Lessor against any loss suffered or liability incurred by Lessor, and all
actions, suits, damages or claims brought against Lessor as a result of Lessee’s failure to use the Premises in accordance with any such law or governmental regulation. 

  

	40.	 	ENVIRONMENTAL MATTERS: 

  

	 	a.	 	The term “Hazardous Materials” as used herein shall mean any petroleum products, asbestos, polychlorinated biphenyls, P.C.B.’s, chemicals, compounds, materials,
mixtures or substances that are now or hereinafter defined, listed in or otherwise classified as a “hazardous substance”, “hazardous material”, “hazardous waste”, “extremely hazardous waste”, “infectious
waste”, “toxic substance”, “toxic pollutant”, or any other formulation intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity or
toxicity pursuant to any federal, state or local environmental law, regulation, ordinance, resolution, order or decree relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, release, disposal
or transportation of the same (“Hazardous Materials Laws”). 

  

	 	b.	 	Lessee shall not use, manufacture, store, release, dispose or transport any Hazardous Materials in, on, under or about the Premises, the Building or the Project without giving prior
written notice to Lessor and obtaining Lessor’s prior written consent, which consent Lessor may withhold in its sole discretion. Lessee shall, at its own expense, procure, maintain in effect and comply with all conditions of any and all
permits, licenses and other governmental and regulatory approvals required in connection with Lessee’s generation, use, storage, disposal and transportation of Hazardous Materials. Except as discharged into the sanitary sewer in strict
accordance and conformity with all applicable Hazardous Materials laws, Lessee shall cause any and all Hazardous Materials to be removed from the Premises and transported solely by duly licensed haulers to duly licensed facilities for final disposal
of such materials and wastes. Regardless whether permitted under the Hazardous Materials laws, Lessee shall not maintain in, on, under or about the Premises, the Building or the Project any above or below ground storage tanks, clarifiers or sumps
nor shall any wells for the monitoring of ground water, soils or subsoils be allowed. Notwithstanding anything contained in this Subparagraph to the contrary, Lessor and Lessee acknowledge that Lessee will utilize the Hazardous Materials
described in Exhibit “F” attached hereto, and Lessor agrees that Lessee may utilize such materials provided that Lessee complies with the provisions of this Paragraph 40 and with the allowed uses stated elsewhere in this Lease.

  

	 	c.	 	Lessee shall immediately notify Lessor in writing of any enforcement, cleanup, removal or other governmental or regulatory action instituted, completed or threatened pursuant to any
Hazardous Materials law; any claim made or threatened by any person or entity against Lessee or the Premises, Building and/or Project relating to damage, contribution, cost, 

  

 14 

	 	    	 	recovery, compensation, loss or injury resulting from or claimed to result from any Hazardous Materials; any reports, information, inquiries or demands made, ordered or received by
or on behalf of Lessee which arise out of or in connection with the existence or potential existence of any Hazardous Materials in, on, under or about the Premises, the Building or the Project, including, without limitation, any complaints, notices,
warnings, asserted violations, or mandatory or voluntary informational filings with any governmental agency in connection therewith, and immediately supply Lessor with copies thereof. 

  

	 	d.	 	Lessee shall indemnify, defend (by counsel reasonably acceptable to Lessor), protect, and hold Lessor, and each of Lessor’s partners, officers, directors, partners, employees,
affiliates, joint venturers, members, trustees, owners, shareholders, principals, agents, representatives, attorneys, successors and assigns free and harmless from and against any and all claims, liabilities, damages, fines, penalties, forfeitures,
losses, cleanup and remediation costs or expenses (including attorney fees) or death of or injury to any person or damage to any property whatsoever, arising from or caused in whole or in part, directly or indirectly by Lessee’s use, analysis,
generation, manufacture, storage, release, disposal or transportation of Hazardous Materials by Lessee, Lessee’s agents, employees, contractors, licensees or invitees to, in, on, under, about or from the Premises, the Building or the Project or
Lessee’s failure to comply with any Hazardous Materials law. Lessee’s obligations hereunder shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary repair, cleanup, detoxification
or decontamination of the Premises, the Building or the Project, and the preparation and implementation of any closure, remedial action or other required plans in connection therewith, and shall survive the expiration or earlier termination of this
Lease. 

  

	 	e.	 	Lessor shall have the right to enter the Premises during regular business hours upon reasonable prior notice at all times for the purposes of ascertaining compliance by Lessee with
all applicable Hazardous Materials laws, provided, however, that in the instance of an emergency Lessor’s entry onto the Premises shall not be restricted to regular business hours nor shall notice be required. 

  

	 	f.	 	Lessor shall have the option to declare a default of this Lease for the release or discharge of Hazardous Materials by Lessee, Lessee’s employees, agents, contractors or
invitees on the Premises, Building or Project or in violation of law or in deviation from prescribed procedures in Lessee’s use or storage of Hazardous Materials. If Lessee fails to comply with any of the provisions under this entire Paragraph
39, Lessor shall have the right, but not the obligation, to remove or otherwise cleanup any Hazardous Materials from the Premises, the Building or the Project. In such case, the costs of any Hazardous Materials investigation, removal or other
cleanup (including, without limitation, transportation, storage, disposal, attorney fees and costs) will be deemed additional rent due under this Lease, whether or not a court has ordered the cleanup, and will become due and payable on demand by
Lessor. 

  

	 	g.	 	Notwithstanding anything contained in this Paragraph 40 to the contrary, Lessee shall not be responsible for the presence or remediation of any Hazardous Materials located on,
over, below or about the Premises which were present in such locations as of the Commencement Date. 

  

	41.	 	MISCELLANEOUS: 

  

	 	a.	 	Lessee and Lessee’s Guarantor, if any, agree to deliver to Lessor, within thirty (30) days from written request therefore (but not more frequently than once each calendar
year) a balance sheet prepared and certified by a Public Accountant or Certified Public Accountant showing the true and accurate net worth of Lessee and said Guarantor, if any, as of the close of Lessee’s and said Guarantor’s most recent
accounting period. 

  

	 	b.	 	In case there is more than one Lessee, the obligations of Lessee executing this Lease shall be joint and several. The words “Lessor” and “Lessee” as used herein
shall include the plural as well as the singular. The covenants and agreements contained herein shall be binding upon and enforceable by the parties hereto and their respective heirs, executors, administrators, successors and assigns, subject to the
restrictions herein imposed on assignment by Lessee. 

  

	 	c.	 	Time is of the essence of this Lease and each and every covenant, condition and provision herein contained. 

  

	 	d.	 	The paragraph headings are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope or intent of this agreement or any provision
thereof or in any way affect this agreement. 

  

	 	e.	 	In the event there is a Guarantor of this Lease, said Guarantor shall have the same obligations as Lessee under this Lease. 

  

	42.	 	ADDENDA: 

  

	    	 	Attached hereto is an addendum or addenda as indicated on the Basic Lease Information which constitute(s) a part of this Lease. 

  

 15 

 IN WITNESS WHEREOF, the parties hereto have subscribed their names, and if corporations, executed this Lease by officers
thereunto duly authorized by resolution of said corporations, in duplicate, the day and year stated below. 
  

	Lessee: BioMarin Pharmaceutical Inc.	 	Lessor: Bayview Ignacio, LLC
		
	/s/    Jeff Landau	 	/s/    Daniel Condiotti             
	
	 	

	By:	 	By:
		
	Senior Vice President, Administration     6/16/03	 	Manager                                      
              6/16/03        
	
	 	

	Title                                      
                       Date        	 	Title                                      
                          Date        
		
	/s/    Louis Drapeau	 	 
	
	 	 
	 By:
	 	 
		
	Chief Financial Officer
                         6/16/03        	 	 
	
	 	 
	 Title                                      
                      Date         
	 	 

  

 16 

 ADDENDUM 1 
  

	43.	 	Parking. 

  
 Throughout the Term of this Lease Lessee shall be entitled to the use of parking spaces on Assessor’s Parcel #157-501-68 and shall be subject to the Parking Agreement of Record on Assessor’s Parcel
#157-501-67 which parcel is neither the property nor under control of Lessor, as shown on Exhibit “L”. 
  

	44.	 	Rent Abatement. 

  
 Provided Lessee has not been in default or material breach of this Lease at any time during the Initial Term, the first four (4) months of Base Monthly
Rent on Building “P” (90 Digital Drive) and one-half of each of the fifth through twelfth months of Base Monthly Rent on Building “O” (105 Digital Drive) shall be abated. In the event of default or material breach of this Lease
on the part of Lessee within the Initial Term, where such default or material breach shall continue for any duration in excess of the cure periods herein provided, if any, and unless such continued duration of default or material breach is with
Lessor’s express written consent, then such previously abated amount shall become immediately due and payable by Lessee to Lessor, without offset, notice or demand. 
  

	45.	 	Reduction in Security Deposit. 

  
 Provided Lessee is not in material breach or default of this Lease at any time during the initial Term, Lessee may apply to Lessor in writing within the
first two months of the fifth year of the Initial Term (and again within the first two months of the seventh year of the Initial Term) for a reduction for each application of up to twenty percent (20%) of the Security Deposit held by Lessor as of
the date of Lessee’s Application, and Lessor shall not unreasonably deny Lessee’s request to reduce the Security Deposit. Such reduction in Security Deposit shall be applied as a credit towards the next amount due from Lessee provided,
however, that in no event shall the amount being held for security for this Lease ever be less than three (3) months of the Initial Monthly Base Rent. 
  

	46.	 	Real Property Taxes; Value Limitation. 

  
 For the first two years of the Initial Term of this Lease, Lessee shall not be responsible for the payment of any increase in Real Property Taxes
resulting from an increased property valuation due solely to a sale or transfer of the property. Following the second year of the Initial Term of this Lease, Lessee shall be responsible for increased taxes arising from a sale or transfer of the
Property. 
  

	47.	 	Option to Renew 

  
 If Lessee has not been in material breach or default of this Lease during the Initial Term (and, subsequently, first Option Term, if exercised), Lessee
shall have two (2) successive options of five (5) years each to extend this Lease upon the following conditions: 
  

	 	a.	 	Lessee shall retain at least as much space as stated in the Basic Lease Information hereto attached, and in “As Is” condition. 

	 	b.	 	Lessee shall provide Lessor with written notice of their intent to exercise such option not less than nine (9) months prior to the Lease initial expiration date and, subsequently,
the expiration of the first option period if it has been exercised. 

	 	c.	 	The Option(s) herein are personal to the Lessee and are not transferable to sub-tenants or assignees. The Options shall be transferable to “Lessee Affiliates” (as
described in Paragraph 29 “a” of this Lease). 

	 	d.	 	Lessor and Lessee agree that any brokerage fee or commission incurred relating to the Option Period(s) shall be borne by the party incurring the fee or commission.

	 	e.	 	The Base Monthly Rent for the first twelve (12) months of each option period exercised shall be at ninety-five percent (95%) of the then fair market rent for similar space in
similar buildings in Novato, but shall be no more than 115% (One Hundred Fifteen Percent) of the Base Monthly Rent for the last month of the previous Lease term. 

  

	48.	 	Initial Improvements By Lessee 

  
 Lessee desires to make substantial changes to both the interior and exterior of the Premises, the scope and extent of which changes has not yet been
determined. Lessee has provided Lessor copies of their most recent architectural concept drawings of Initial Improvements for attachment to this Lease as Exhibit “G”. It is agreed between Lessor and Lessee that all Initial Improvements,
both Interior and Exterior, shall be made by Lessee under agreement with a licensed General Contractor who shall be reasonably approved by Lessor. 
  

	49.	 	Initial Interior Improvements 

  

	 	a.	 	Lessee shall diligently pursue completion of the preliminary space plan drawings which shall include, in detail, the proposed Initial Interior Improvements. Lessee shall submit two
(2) sets of the preliminary space plans to Lessor as soon as available for Lessor’s review. 

	 	b.	 	Lessor shall have fourteen (14) days from receipt of the preliminary space plans to approve, disapprove or request reasonable modifications of the preliminary space

  

 1 

	 	    	 	plans. If Lessor does not respond within fourteen (14) days of receipt of the preliminary space plans, said plans shall be deemed approved and shall be attached to this Lease as
Exhibit “H”. 

  

	 	1.	 	As long as the preliminary space plans and specifications reasonably conform with the Use provisions of the lease the Lessor shall not unreasonably refuse to approve them.

	 	2.	 	If Lessor requests modifications to conform the preliminary space plans and specifications to the Use provisions then Lessee shall have 10 days to make such modifications and
resubmit to Lessor pursuant to this Paragraph 49. 

  

	 	c.	 	Lessee shall develop working drawings from approved preliminary space plans, such drawings to include finish specifications and final draft budget (the “Complete Working
Drawings”). Lessee shall submit two (2) sets of Complete Working Drawings to Lessor for Lessor’s review and comments or approval. 

  

	 	d.	 	Lessor shall have fourteen (14) days from receipt of Complete Working Drawings to request reasonable modifications or approve the Complete Working Drawings. For the purposes of this
provision, it shall be deemed reasonable for Lessor to disapprove elements of the Complete Working Drawings which deviate substantially from the approved preliminary space plans. If Lessor does not respond within fourteen (14) days of receipt of the
Complete Working Drawings, said drawings shall be deemed approved. The approved Complete Working Drawings shall be attached to this Lease as Exhibit “I”. 

  

	 	e.	 	Once the Complete Working Drawings are approved, Lessee shall have the right to submit the approved plans for issuance of the appropriate Building Permit(s).

  

	 	f.	 	Lessee shall provide Lessor with a copy of the General Contractor’s Agreement prior to commencement of any work on, or delivery of any materials to the Premises. It shall be a
requirement of that agreement between Lessee and General Contractor to acquire the executed Estoppel form (attached as Exhibit “E”) from the General Contractor, prior to the commencement of any work on, or delivery of any materials to the
Premises. Lessee or Lessee’s General Contractor will deliver the Estoppels to Lessor prior to commencement of work or delivery of materials to the Premises. 

  

	 	g.	 	Lessee shall provide Lessor with a copy of the Building Permit(s) upon issuance and two (2) sets of plans as approved by the appropriate government agency issuing the Building
Permit(s). 

  

	 	h.	 	Lessee shall notify Lessor in writing not less than seven (7) days in advance of the commencement of any work on, or delivery of materials to the Premises so that Lessor may cause
to be recorded a Notice or Notices of Non-Responsibility, or other Notice or Notices provided by law. Lessee shall further notify Lessor in writing within forty-eight (48) hours after such work commences. 

  

	 	i.	 	Prior to the commencement of work on the Initial Interior Improvements, Lessee and the General Contractor shall provide Lessor with a Performance and Payments Bond in an amount
sufficient to ensure the General Contractor will promptly and faithfully perform said contract and payments to those subcontracted entities required in California Civil Code Section 3110. The Performance Bond shall include Lessor as Additional
Obligee through attached rider. Upon execution of a contract between Lessee and General Contractor for the Initial Interior Improvements Lessee will file and record, pursuant to Civil Code Section 3235, the general contract and Payments Bond with
the County of Marin and shall provide Lessor with a copy of the recorded documents. Lessee will provide Lessor with the documents required in this Paragraph 49, subsection ( i ) prior to start of work. Lessor reserves the right to require an
increase in Performance and/or Payments Bond upon any change orders to the original contract between Lessee and General Contractor. 

  

	 	j.	 	Lessor shall have the right to stop work on the Initial Improvements unless and until the requirements of this Paragraph 49 are met. 

  

	 	k.	 	Lessee shall provide Lessor with copies of all change orders to the approved Complete Working Drawings. If the change contemplated in a change order is substantially different from
the approved Complete Working Drawings or involved structural modifications to the Building(s) the Lessor shall have seven (7) days from receipt of same to request modification of or approve the change orders. “Substantially different”
shall include, but not be limited to, any change in square footage, reducing the quality of the approved specifications, a change in the improvements such that they no longer comply with applicable codes, or a change in the improvements such that
they no longer conform to the Use. If Lessor does not respond within seven (7) days, the change order shall be deemed approved. 

  

	 	l.	 	Upon completion of the Initial Interior Improvements, or twenty-four (24) months from the Commencement Date of this Lease, whichever occurs first, Lessee shall provide Lessor with a
copy of the final, signed-off Building Permit(s) and two (2) complete sets of “As Built” plans, which shall replace Exhibits “G, H & I”. 

  

	 	m.	 	Lessor and Lessee agree that the Initial Interior Improvements approved by Lessor pursuant to this Paragraph 49 shall not be subject to restoration under the terms of this Lease,
that such Initial Interior Improvements are not required to make the Premises habitable for the use stated in this Lease, and that Lessor’s election to waive restoration of same shall not be construed to indicate Lessor as a participating
owner. 

  

 2 

	 	n.	 	All other changes, additions, deletions, modifications or improvements to the Premises not specifically included in the approved Initial Interior Improvements, or included in the
approved Initial Interior Improvements but not completed within twenty-four (24) months of the Commencement Date of this Lease, shall be subject to the Terms of this Lease, Paragraphs 49 & 50 excepted. 

  

	50.	 	Initial Exterior Improvements 

  

	 	a.	 	Lessee shall diligently pursue development of renderings, specifications, preliminary budget and appropriate engineering reports (the “Preliminary Exterior Plans”) for
Initial Exterior Improvements and shall provide two (2) sets to Lessor as soon as available for Lessor’s review. 

  

	 	b.	 	Lessor shall have fourteen (14) days from receipt of the Preliminary Exterior Plans to approve, disapprove or request reasonable modifications to said plans. If Lessor does not
respond within fourteen (14) days, said plans shall be deemed approved, and shall be attached to this Lease as Exhibit “J”. If Lessor requests reasonable modifications to the Preliminary Exterior Plans then Lessee shall have fourteen (14)
days to make such modifications and resubmit the plans to Lessor. 

  

	 	c.	 	Lessee shall develop Exterior Permit Plans from the approved Preliminary Exterior Plans with finish specifications, final draft budget and additional engineering reports (if any)
(the “Exterior Permit Plans”). Lessee shall submit two (2) sets of Exterior Permit Plans to Lessor for Lessor’s review and comments or approval. 

  

	 	d.	 	Lessor shall have fourteen (14) days from receipt of the Exterior Permit Plans to request reasonable modifications or approve the Exterior Permit Plans. For the purpose of this
provision, it shall be deemed reasonable for Lessor to disapprove any substantial structural changes between the Preliminary Exterior Plans and the Exterior Permit Plans. If Lessor does not respond within fourteen (14) days, said plans shall be
deemed approved and shall be attached as Exhibit “K” to this Lease. 

  

	 	e.	 	Once the Complete Exterior Permit Plans are approved, Lessee shall have the right to submit the approved plans for issuance of the appropriate Building Permit(s).

  

	 	f.	 	Lessee shall provide Lessor with a copy of the General Contractor’s Agreement prior to commencement of any work on, or delivery of any materials to the Premises. It shall be a
requirement of that agreement to acquire the executed Estoppel form (attached as Exhibit “E”) from the General Contractor prior to the commencement of any work on, or delivery of any materials to the Premises. Lessee or Lessee’s
General Contractor will deliver the Estoppels to Lessor prior to commencement of work or delivery of materials to the Premises. 

  

	 	g.	 	Lessee shall provide Lessor with a copy of the Building Permit(s) upon issuance and two (2) sets of plans as approved by the appropriate government agency issuing the Building
Permit(s). 

  

	 	h.	 	Lessee shall notify Lessor in writing not less than seven days in advance of the commencement of any work on, or delivery of materials to the Premises so that Lessor may cause to be
recorded a Notice or Notices of Non-Responsibility, or other Notice or Notices provided by law. Lessee shall further notify Lessor in writing within forty-eight (48) hours after such work commences. 

  

	 	i.	 	Prior to the commencement of work on the Initial Exterior Improvements, Lessee and the General Contractor shall provide Lessor with a Performance Bond and Payments Bond in an amount
sufficient to ensure the General Contractor will promptly and faithfully perform said contract and payments to those subcontracted entities required in California Civil Code Section 3110. The Performance Bond shall include Lessor as Additional
Obligee through attached rider. Upon execution of a contract between Lessee and General Contractor for the Initial Exterior Improvements Lessee will file and record, pursuant to Civil Code Section 3235, the general contract and Payments Bond with
the County of Marin and shall provide Lessor with a copy of the recorded documents. Lessee will provide Lessor with the documents required in this Paragraph 50, subsection ( i ) prior to start of work. Lessor reserves the right to require an
increase in the Performance and/or Payments Bond(s) upon any change orders to the original contract between Lessee and General Contractor. 

  

	 	j.	 	Lessor shall have the right to stop work on the Initial Exterior Improvements unless and until the requirements of this Paragraph 50 are met. 

  

	 	k.	 	Lessee shall provide Lessor with copies of all change orders to the approved Exterior Permit Plans. If the change contemplated in a change order is substantially different from the
approved Exterior Permit Plans or involves structural modifications to the Building(s) the Lessor shall have fourteen (14) days from receipt of same to request modification of or approve the change orders. “Substantially different” shall
include, but not be limited to, any change in square footage, reducing the quality of the approved specifications, materially modifying the finish specifications, or a change in the improvements such that they no longer comply with applicable codes.
If Lessor does not respond within fourteen (14) days, the change order shall be deemed approved. 

  

	 	l.	 	Upon completion of the Initial Exterior Improvements, or twenty-four (24) months from the Commencement Date of this Lease, whichever occurs first, Lessee shall

  

 3 

	 	    	 	provide Lessor with a copy of the final, signed-off Building Permit(s) and two (2) complete sets of “As Built” plans, which shall replace Exhibits “J & K”.

  

	 	m.	 	Lessor and Lessee agree that the Initial Exterior Improvements approved by Lessor pursuant to this Paragraph 50 shall not be subject to restoration under the terms of this Lease,
that such Initial Exterior Improvements are not required to make the Premises habitable for the use stated in this Lease, and that Lessor’s election to waive restoration of same shall not be construed to indicate Lessor as a participating
owner. 

  

	 	n.	 	All other changes, additions, deletions, modifications or improvements to the Premises not specifically included in the approved Initial Exterior Improvements, or included in the
approved Initial Interior Improvements but not completed within twenty-four (24) months of the Commencement Date of this Lease, shall be subject to the Terms of this Lease, Paragraphs 49 & 50 excepted. 

  

	 Lessee: BioMarin Pharmaceutical Inc.
	  	 	  	Lessor: Bayview Ignacio, LLC	  	 
				
	 /s/    Jeffrey Landau
	  	 	  	/s/    Daniel Condiotti	  	 
	
	  	 	  	
	  	 
	 By
	  	 	  	By	  	 
				
	 Senior Vice President, Administration
	  	6/16/03	  	Manager	  	6/16/03
	
	  	
	  	
	  	

	 Title
	  	Date	  	Title	  	Date
				
	 /s/    Louis Drapeau
	  	 	  	 	  	 
	
	  	 	  	 	  	 
	By:	  	 	  	 	  	 
				
	 Chief Financial Offiicer
	  	6/16/03	  	 	  	 
	
	  	
	  	 	  	 
	 Title
	  	Date	  	 	  	 

  
  

 4 

   
 ADDENDUM 2
51.)  Lessee shall have the right to occupy approximately 6,585 square feet of first
floor office space located at 105 Digital from July 1st, 2003 to November 1st, 2003 or Lease Commencement date, whichever occurs first. Lessee’s occupancy shall be subject to all Terms, Conditions, Obligations and
Covenants of the Lease. Base Monthly Rent for this period shall be $6,585.
 Should Lease Commencement occur after November 1st, 2003, Lessee may continue occupancy of this space on a month-to-month basis until either party shall give
30 (thirty) days notice to the other party. Upon Lease Commencement this Paragraph shall expire. 

	Lessee	 	Lessor
	 
	/s/ JEFFREY I. LANDAU	 	/s/ J. WARZ
	
	 	

	Jeffrey Landau, BioMarin Pharmaceuticals, Inc.	 	J. Warz, Bayview Ignacio, LLC
	 
	6/17/03	 	6/17/03
	
	 	

	Date	 	Date

  Exhibit “C” 
Copy Of 
DECLARATION OF COVENANTS AND PROTECTIVE STANDARDS

OF 
IGNACIO INDUSTRIAL PARK, UNITS #3 AND 3A 
NOVATO, CALIFORNIA
 This declaration, made on January 20, 1982, is made by Debra Investment Corporation, a California corporation, and by Marvin
Solland hereinafter referred to as “Declarants.”
 Witnesseth:
 WHEREAS, Debra Investment Corporation and Marvin Solland are the
Owners of certain real property in the County of Marin, State of California, known as Ignacio Industrial Park, Units #3 and 3A, an more particularly described hereinafter; and
 NOW, THEREFORE, Debra
Investment Corporation and Marvin Solland hereby make the following Declaration:
 Establishment of Protective Standards:
 Declarant Owners of said property
hereby declare that said property is now held and shall hereinafter be held, transferred, sold, conveyed and occupied subject to the protective standards herein set forth, each and all of which is and are for, and shall insure to, the benefit of and
pass with each and every parcel of said property and shall apply to and bind the heirs, assignees, and successors in interest of any Owner thereof.
 Description of Said Property:
 Said property subject to this Declaration is described as follows, to wit: Lots 65 through 75, Lots 100 through 113, and Lots 125 through 137, all inclusive, Map of Ignacio Industrial Park, Unit #3, recorded on April 17, 1981
in Map Book 18, Page 44, Official Records of the County of Marin, County of Marin, State of California; and Lots 138 through 144 and Lots 145 through 151, inclusive, Map of Ignacio Industrial Park unit #3A, recorded on December 7, 1981 in Map Book
18 at Page 61, Official Records of the County of Marin, State of California.
 ARTICLE I         Purpose of Protective Standards:
 The purpose of these protective standards is to insure well-planned development and proper use of said property, to protect each property Owner against such adjacent development as may depreciated the value of his parcel; to
require attractive and harmonious improvements; and in general to require a high quality of improvements throughout said property in accordance with these Covenants and Protective Standards for the mutual benefit of all parcel Owners.

ARTICLE II         Architectural Control Committee:
 1.         Formation:
 Debra Investment Corporation shall form an Architectural Control Committee, hereinafter called
“Committee”, which shall consist of three members. The appointment of such members shall be disclosed by a written instrument setting forth the facts of the appointment, the names and business addresses for the members, and the period for
which they are appointed. Said instrument shall be signed by Declarant, acknowledged before a Notary Public, and recorded in the officer of the County Recorder, of the County of Marin, State of California. Any changes in the membership of the
Committee shall be similarly acknowledged and recorded. Upon resignation of a member, Declarant may appoint a replacement for the balance of the member’s term. A majority of the Committee may designate a representative to act for it. Any
authorization, approval, or power given by the Committee must be in writing, and must be signed by at least one duly appointed member.
 2.         Duties:
 The Committee shall as soon as practicable after formation, develop basic specific design criteria, including
but not limited to the following building design and site development issues:

	 	A.	     Building  Materials
	 	B.	     Colors
	 	C.	     Signing (Identification and directional)

 

	 	D.	    Surface Treatment (walkways and paving) 
	 	E.	    Lighting (building and area) 
	 	F.	    Parking 
	 	G.	    Landscaping 
	 	H.	    Fencing 

 
 and shall utilize said design criteria in acting on projects in accordance with the procedures set forth in
Article III.
 3.         Succession:
 At any time after seventy percent of the property subject to these
restrictions has been sold; based upon the number of square feet owned as compared with the total number of square feet subject to these Restrictions, control of the Committee may be relinquished by the Declarant by a duly recorded written
statement, and all powers and controls, including designation of Committee membership, may be transferred to an Ignacio Industrial Park Improvement Association.
 ARTICLE
III          Improvement Restrictions and Conditions:
 1.         Site Plan an Architectural
Approval:
 No improvements, defined as any man-made/manufactured physical feature, shall be erected, placed, altered, maintained, or permitted to remain on any building site unless and until a complete
set of plans and specifications therefor, including a plot plan, floor plan, sections and exterior elevations, including colors therefor, shall have been first submitted to and approved in writing by the Architectural Control Committee, as specified
in Article II. Such plans and specifications, and color scheme shall be submitted for approval over the signature of the Owner of the building site or over the signature of his authorized Agent. Approval shall be based, among other things, on
adequacy of site dimensions; conformity and harmony of external design, effect of location and use of improvements on neighboring sites; relation of topography, grade and finished ground elevation of the building site being improved to that of
neighboring sites; plans and specifications to the purpose and intent of these protective standards.
 The Committee shall not arbitrarily or unreasonable withhold its approval of such plans and
specifications, plot plan, elevation, material and/or color scheme. If the Committee shall fail to approve of disapprove the same within thirty (30) days after they have been submitted, it shall be conclusively presumed that the Committee has
approved said plans and specifications, and/or color schemes, subject to these protective standards. If, after such plans, specifications, and color schemes shall have been approved, the improvements or any part thereof shall be altered, erected or
maintained upon the lot or building site otherwise than so approved by the Committee, such alteration or erection shall be deemed to have been undertaken and made without the approval of the Committee as required.
 Neither the Committee nor its successors or assigns shall be liable in damages to anyone submitting plans, specifications and color scheme to it for approval or to any owner of land affected by this Declaration, by reason of
mistake in judgement, negligence, or non-feasance arising out of or in connection with the approval or disapproval or failure to approve the same. Every person who submits plans, specifications and color scheme to property to the Committee for
approval agrees, by submission of same, and every Owner of any of said property agrees acquiring title thereof, that he will not bring any action or suit against the Committee to recover such damages.
 Notwithstanding anything to the contrary contained herein, after expiration of six months from recording of the Notice of Completion by the Owner of any improvement, said improvement shall in favor of purchasers and
encumbrances in good faith and for value, to be in compliance with all provisions hereof unless actual notice of such completion or non-completion executed by the Committee shall appear on record in the office of the County Recorder of Marin County,
California, or unless legal proceedings shall have been instituted to enforce compliance or completion.
 2.         Landscaping:
 Street and lot landscaping shall conform to the “Landscape Master Plan” and the “Landscape Guidelines” prepared for this industrial park by F. Furuichi and dated October 1980, revised October 1981. Copies
are available at the Novato Planning Department.
 All planting and irrigation plans shall be submitted to the Novato Planning Department for routine plan check and compliance to applicable standards, codes,
covenants, and regulations.
 3.         Succession of Authority to Modify:
 At any time after seventy percent of
the property subject to these Restrictions has been sold, based upon the number of square feet 

  owned as compared to the number of square feet subject to these restrictions, Debra Investment Corporation may transfer authority for modification of this Article to an Ignacio
Industrial Park Unit #3 and #3A improvement Association.
 ARTICLE IV         Use Restriction and Condition:
 1.         Permitted Uses:
 The following uses may be established upon any property or site within Ignacio Industrial Park, Units #3
and #3A:

	 	A. 	 Industrial, manufacturing and business service uses, conducted entirely within an enclosed structure, not involving retail sales or personal service activities, and not having objectionable
characteristics of noise, odor, dust, smoke, or glare.
	 	B. 	 Laboratories.
	 	C. 	 Sale or repair of industrial or manufacturing equipment.
	 	D. 	 Warehousing, wholesale distribution or storage uses.
	 	E. 	 Professional or administrative offices.
	 	F. 	 Retail sales which are specifically accessory to and directly related to an otherwise allowed use.
	 	G. 	 Snack bars, barer shops, and similar small convenience service uses only if scaled to the size of the complex and intended to serve the tenants/employees of the park only
	 	H. 	 Outdoor storage of goods and materials only if specifically incidental to a primary use within the building, and then only with the written consent of the Architectural Control Committee.

	 	 	 
	(Note:	  	 Some of the above listed uses may require permits or requests for approval form government agencies: It is the business Owner’s/Operator’s responsibility for securing all such permits or
approvals).

 
 2.         Prohibited Uses:
 The following uses may not be established upon any
property or site within Ignacio Industrial Park Units #3 and #3A:

	 	A. 	    Any use which is identifiable as one of the following:

	 	  
	 	               1.     Auto wrecking/dismantling
	 	               2.     Auto repair (mechanical or electrical or body work)
	 	               3.     Auto painting
	 	               4.     Auto towing
	 	               5.     Retail sales except as allowed by IC, F and G above. 
	 	               6.     Moving and storage 
	 	               7.      Mini-warehousing

	 	B. 	    Any use which has any of the following characteristics:

 

	 	                              1.      
 	 Smoke of a shade as dark or darker than that designated as No. 1 on the Ringleman Chart, as published by the United States Bureau of Mines, for a period aggregating more than three minutes in any
one hour. 
	 	                              2.      
 	Obnoxious odors
	 	                              3.       
	Dust, dirt, or fly ash
	 	                              4.       
	Noxious, toxic, or corrosive fumes or gases
	 	                              5.       
	Unusual fire or explosion hazards as determined by the Novato Fire District.
	 	                              6.       
	The disposal of garbage, refuse or objectional material within the bounds of the Industrial Park or bordering easements.
	 	                              7.      
 	Heat and glare, whether from floodlights or high temperature processes such as combustion, welding or otherwise. This shall apply to permitted signs.
	 	                              8.      
 	Vibrations.
	 	                              9.       
	Electromagnetic interference
	 	                              10.       
	Noise or sound that either:

		
	                                    
           a.       	Exceeds seventy (70) decibels for a period(s) aggregating more than three (3) minutes in any one hour, measured at a distance of 25 fee and at a height of 6 feet; or
	                                    
           b.        	Is objectionable due to intermittent beat, frequency or shrillness.

	 	 	 
	 	                              11.      
 	Store-front display of product or merchandise.
	 	                              12.       
	Outdoor storage unless specifically approved by the Architectural Control Committee.

  ARTICLE V     Maintenance Requirements:
 All improvements on each site, including - without limitation -
landscaping, all walks, driveways, and the exterior of all structures on each site, shall be maintained in good order, repair and condition. All exterior painted surfaces shall be maintained in a first-class condition.
 If the grounds and improvements on each site are not maintained in accordance with all of the requirements of these Restrictions, the Declarant shall have the right, after 10 days to enter upon the site to perform the required
maintenance and repair. The expenses of such maintenance and repair shall be a joint and several obligation of the Owner and all Occupants of the site, and shall be payable upon demand of the Declarant and shall commence to bear interest at the
maximum rate permitted by law from the date of demand for payment by the Declarant until the date of payment. Entry upon a site by the Declarant or its Agents for the purpose of maintenance and repair shall not be a trespass, and the Owner and all
Occupants shall be deemed to have consented thereto.
 ARTICLE VI     Enforcement:
 1.     Abatement and
Suit:
 Violation or breach of any restrictions herein contained shall give to Declarant, and every Owner of property subject to these Restrictions, the right to prosecute a proceeding at law or in equity
against the person or persons who have violated or are attempting to violate any of these Restrictions to enjoin or prevent them from doing so, to cause said violation to be remedied or to recover damages for said violation.
 The result of every action or omission whereby any restriction herein contained is violated in whole or in part is hereby declared to be and to constitute a nuisance, and every remedy allowed by law or equity against an Owner,
either public or private, shall be applicable against every such result and may be exercised by Declarant, or by any Owner of property subject to these Restrictions.
 In any legal or equitable proceeding for
the enforcement or to restrain the violation of the Declaration or any provisions thereof. The losing party or parties shall pay the attorney’s fees of the prevailing party or parties in such amount as may be fixed by the court in such
proceedings. All remedies provided herein or at law or in equity shall be cumulative and not exclusive.
 2.     Failure to Enforce Not a Waiver of Rights:
 The failure of Declarant or any property Owner to enforce any protective standard herein contained shall in no event be deemed to be a waiver of the right to do so thereafter, of the right to enforce any other protective
standard.
 ARTICLE VII     Miscellaneous:
 1.     Duration, Modification:
 This Declaration, every provision hereof, and every covenant, condition, and protective standard contained herein shall continue in full force and affect for a period of thirty (30) years from the date hereof; provided,
however, that this Declaration or any provision hereof, any covenant condition or protective standard contained herein, except for Article II (Architectural Control Committee) and Article III (Improvement Restrictions & Conditions), may be
terminated, extended, modified or amended as to the whole of said property with the written consent of the Owners of fifty percent (50%) of the said property, based on the number of square feet owned as compared to the total number of square feet of
said property. No such termination, extension, modification or amendment shall be effective until a property instrument in writing has been executed and acknowledged and recorded in the office of the Recorder of Marin County, California.

2.     Easements:
 Said property, lots and building sites are and shall be subject to such easements as are now matters of public record and
such easements are hereby reserved for the benefit of all the Owners, present or future, or the lots and building sites in said property.
 3.     Assignability of Declarant’s
Rights and Duties:
 Any and all of the rights, powers and reservations of Declarant herein contained may be assigned by Declarant to any other person, corporation or association which will asso the
duties of Declarant pertaining to particular rights, power and reservations assignee and upon any such person, corporation or association evidencing its consent in writing to accept such assignment and 

  assume such duties, he or it shall, to the extent of such assignment, have the same tasks and powers and be subject to the same obligations and duties as are given to an assumed by
Declarant. The term “Declarant”, as used herein, includes all such assignees and their heirs, successors and assigns.
 4.     Constructive Notice of
Acceptance:
 Every person who now or hereafter owns or acquires any right, title, estate or interest in or to any portion of said property is and shall be conclusively deemed to have consented and agreed
to every covenant, condition and protective standard contained herein, whether or not any reference to this Declaration is contained in the instrument by which such person acquired an interest in said property.
 5.     Right of Mortgagees:
 All restrictions and other provisions herein contained shall be deemed subject and subordinate to all mortgage and deeds of
trust now or hereafter executed upon land subject to these protective standards, and none of said protective standards shall supercede or in any way reduce the security or affect the validity of any such mortgage or deed of trust; provided, however,
that if any portion of said property is sold under a foreclosure of any mortgage or under the provisions of any deed of trust, any purchaser at such sale, and his successors and assignees, shall hold any and all property so purchased subject to all
of the protective standards and other provisions of this Declaration.
 6.     Mutuality, Reciprocity Runs With Land:
 All protective
standards, conditions, covenants and agreements contained herein are made for the direct, mutual and reciprocal benefit of each and every part and parcel of said property; shall create mutual, equitable servitude upon each parcel; shall create
reciprocal rights and obligations between the respective Owners of all parcels, and privity of contract and estate between all grantees of said parcel, his heirs, successors and assigns; operate as covenants running with the land, for the benefit of
all parcels.
 7.     Marginal Headings:
 The marginal headings of titles to the paragraphs of the Declaration are not a part of this
Declaration and shall have no effect upon the constitution or interpretation of any part thereof.
 ARTICLE VII     Miscellaneous:
 8.     Effect of Invalidation:
 In any provision of this Declaration is held to be invalid by any court, the invalidity of such provision shall not
affect the validity of the remaining provisions hereof.
 IN WITNESS WHEREOF, the undersigned have executed this Declaration on the date first hereinabove written.

	
	 	

	A. CONDIOTTI, President	 	MARVIN SOILAND
	DEBRA INVESTMENT CORPORATION	 	OWNER OF LOTS 65 THROUGH 76,
	          	 	INCLUSIVE, of IGNACIO INDUSTRIAL PARK, UNIT #3
	STATE OF CALIFORNIA)	 	 
	COUNTY OF SONOMA)	 	 

      On January 20, 1982, before me, the undersigned, a Notary Public in and for said County and State personally
appeared A. Condiotti known to me to be the President and known to me to be the of the corporation that executed the within instrument, and known to me to be the persons who executed the within instrument on behalf of the corporation therein named
and acknowledged to me that such corporation executed the within instrument pursuant to its by-laws or a resolution of its Board of Directors.
 WITNESS my hand and official seal.
Notary
Public in and for said County and State
My commission expires August 2, 1982.

  FOUNDATION OF ARCHITECTURAL CONTROL COMMITTEE
for
IGNACIO INDUSTRIAL PARK, UNITS # 3 AND # 3A 
IN ACCORDANCE WITH THE DECLARATION OF RESTRICTIONS
FOR THOSE
SUBDIVISIONS
 DEBRA INVESTMENT CORPORATION hereby appoints the following individuals as the members of the Architectural Committee in accordance with Article II of the Declaration for Covenants and
Protective Standards for Ignacio Industrial Park, Units #3 and #3A. Novato, California.

	1. Mr. A. Condiotti	2. Marvin Soiland	3. Mr. Phillip A. Trowbridge
	Debra Investment Corporation	Soiland Company, Inc.	Debra Investment Corporation
	P.O. Box 6855	1220 Airport Boulevard	P. O. Box 6855
	Santa Rosa, CA 95406	Santa Rosa, CA 95401	Santa Rosa, CA 95406

 

	
	 
	A. Condiotti, President	 
	Debra Investment Corporation	 
	 	 
	State of California)	 
	County of Sonoma)	 

 On this 20th day of January in the year one thousand nine hundred and eighty-two, before me, Linda Tower, a Notary Public,
State of California, duly commissioned and sworn, personal appeared Marvin Soiland, known to me to be the person whose name is acknowledged to me that be executed the same.
 IN WITNESS WHEREOF I have herein
set my hand and affixed in official seal in the County of Sonoma the day and year this certificate first above written.

	 	

	 	Notary Public, State of California
	 	My commission expires August 2, 1982

 EXHIBIT 1
TO EXHIBIT “C”
 PROPERTY DESCRIPTION FOR LAKEPOINT BUSINESS PARK
 Description of Said Property:
 Said property subject to this Declaration
is described as follows, to wit: Lots 65 through 75, Lots 100 through 113, and Lots 125 through 137, all inclusive, Map of Ignacio Industrial Park, Unit #3, recorded on April 17, 1981 in Map Book 18 page 44 Official Records of the County of Marin,
State of California,; and Lots 138 through 144 and Lots 145 through 151, inclusive, Map of Ignacio Industrial Park Unit #3A, recorded on December 7, 1981 in Map Book 18 page 64, Official Records of the County of Marin, State of
California.

  EXHIBIT “D”
 POLICY NUMBER__________________________________
 THIS ENDORSEMENT CHANGES THE POLICY
ADDITIONAL INSURED-LESSOR OF PREMISES
 This endorsement modifies insurance provided under the following:
GENERAL LIABILITY
COVERAGE

	1	Designation of Premises:	 
	 	BAYVIEW BUSINESS PARK	 
	 	90 & 105 Digital Drive	 
	 	Novato, California	 
	 	Buildings “O” & “P”	 
	 
	2	Name of Organization—Additional Insured:	 
	 	Bayview Ignacio, LLC	 
	 	P. O. Box 11068	 
	 	Santa Rosa, California 95406-1068	 
	 	(707) 544-7050	 
	 	(707) 523-7031 Fax	 

	 	 	 
	 	 	 WHO IS AN INSURED is amended to include as insures the organization named above but only with respect to liability arising out of the ownership, maintenance or use of that part or parts of the Premises leased to you
and designated above.

	 	 	 
	 		 The insurance provided to the additional insured by this policy shall be primary to, and non-contributory with, any other insurance available to the additional insured as the Named Insured, and such other insurance
shall only apply in excess of this insurance. 

 

 EXHIBIT “E” 
  
 ESTOPPEL STATEMENT 
  
 The undersigned hereby acknowledges the notification and receipt of the Notice of Non-responsibility (a copy of which is attached hereto) by the property
owner and Lessor, Bayview Ignacio, LLC, with respect to              
  
  

	

		
	
	 	.

  
 The undersigned is aware that the
filing and posting of such Notice of Non-responsibility, as set forth in Section 3094 of the California Civil Code, has the effect of exempting Lessor’s interest in the property from any mechanics’ liens filed in connection with any
alterations, changes, additions or improvements performed at the request of Lessee. 
  
 The undersigned acknowledges and understands that the Notice of Non-responsibility is the method by which a property owner exempts the property from mechanics’ liens and notifies all those who are expending labor and/or materials on a
project that the property owner will not be responsible for such labor and/or materials. 
  
 The undersigned acknowledges that Lessor is NOT a PARTICIPATING OWNER (i.e., Lessee is not an agent of Lessor in performing any alterations, changes, additions or improvements. Such work is not a
condition of the Lease, and does not materially enhance the value of Lessor’s property) and that no relationship exists between Lessor and Lessee other than that of landlord and tenant. The undersigned acknowledges and understands that Lessor
claims no ownership interest in such tenant improvements, and any retention of such improvements as part of the Premises when they are returned to Lessor at the termination of the Lease is not a requirement under the Lease, and may occur only if
Lessee desires to avoid the expense of restoring the property to its condition prior to the Lease and complies with such requirements under the Lease. Accordingly, the undersigned hereby waives and relinquishes any and all rights to assert a claim
and/or file a mechanics’ lien against the Lessor’s interest in the property relating to or arising from the work described herein; provided, however, that nothing in this estoppel shall prohibit any claims from being made against the
Lessee’s interest in the property and/or Lessee’s alterations, changes, additions or improvements thereto. 
  

	

	By:	  	Date
		
	 For:
 California Contractor’s License # 
	  	

  
  

 5Note Purchase Agreement dated June 18, 2003

  EXHIBIT 10.3
 $125,000,000 Principal Amount
 BioMarin
Pharmaceutical Inc.
 3.50% Convertible Subordinated Notes
 due 2008
 
 PURCHASE AGREEMENT
 June 18, 2003

   
 PURCHASE AGREEMENT
 June 18, 2003
 UBS
SECURITIES LLC
 CIBC WORLD MARKETS CORP.

	c/o	UBS Securities LLC
	  	299 Park Avenue
	  	New York, New York 10171

 Dear Sirs and Mesdames:
                     BioMarin Pharmaceutical Inc., a Delaware corporation (the “Company”), proposes to issue
and sell to the initial purchasers named in Schedule A hereto (the “Initial Purchasers”) $125,000,000 aggregate principal amount of its 3.50% Convertible Subordinated Notes due 2008 (the “Firm Notes”). In
addition, the Company proposes to grant to the Initial Purchasers the option to purchase from the Company up to an additional $25,000,000 aggregate principal amount of the Company’s 3.50% Convertible Subordinated Notes due 2008 (the
“Additional Notes”). The Firm Notes and the Additional Notes are hereinafter collectively sometimes referred to as the “Notes.”
                     The Notes are to be issued pursuant to an indenture (the “Indenture”) to be dated as of
June 23, 2003, between the Company and Wilmington Trust Company, as trustee (the “Trustee”). The Notes will be convertible in accordance with their terms and the terms of the Indenture into shares of the common stock (the
“Common Stock”) of the Company, par value $0.001 per share (the “Shares”).
                     The Notes and the Shares will be offered and sold by the Initial Purchasers (the “Exempt
Resales”) without being registered under the Securities Act of 1933, as amended (the “Act”), to “qualified institutional buyers” in compliance with the exemption from registration provided by Rule 144A under the
Act (“Rule 144A”).
                     The Initial Purchasers and their direct and
indirect transferees will be entitled to the benefits of a Registration Rights Agreement to be entered into at or prior to the time of purchase (as defined herein) between the Company and the Initial Purchasers (the “Registration Rights
Agreement”).
                     In connection with the sale of the Notes, the Company has
prepared a preliminary offering memorandum (the “Preliminary Memorandum”) and will prepare a final offering memorandum (the “Final Memorandum” and, with the Preliminary Memorandum, each a
“Memorandum”) including or incorporating by reference a description of the terms of the Notes and the Shares, the terms of the offering and a description of the Company. As used herein, the term “Memorandum” shall
include in each case the documents incorporated by reference therein, if any (the “Incorporated Documents”). The terms “supplement”, “amendment” and “amend” as used herein with
respect to a Memorandum shall include all documents deemed to be incorporated by 

  reference in the Preliminary Memorandum or Final Memorandum, if any, that are filed subsequent to the date of such Memorandum with the Securities and Exchange Commission (the
“Commission”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
                     The Company and the Initial Purchasers agree as follows:
                     1.         Sale and Purchase:   Upon the basis of the
warranties and representations and subject to the other terms and conditions herein set forth, the Company agrees to sell to the Initial Purchasers, and each of the Initial Purchasers, severally and not jointly, agrees to purchase from the Company,
$125,000,000 aggregate principal amount of Firm Notes in such amounts set forth opposite the name of such Initial Purchaser in Schedule A hereto at a purchase price of 97.00% of the principal amount thereof (the “purchase
price”).
                     In addition, the Company hereby grants to the several Initial
Purchasers the option to purchase, and upon the basis of the representations and warranties and subject to the other terms and conditions herein set forth, the Initial Purchasers shall have the right to purchase from the Company, all or a portion of
the Additional Notes at the purchase price, plus accrued interest, if any, from the time of purchase (as hereinafter defined) to the additional time of purchase (as hereinafter defined). This option may be exercised by UBS Securities LLC, on behalf
of the Initial Purchasers, at any time and from time to time on or before the thirtieth day following the date hereof, by written notice to the Company. Such notice shall set forth the aggregate initial principal amount of Additional Notes as to
which the option is being exercised, and the date and time when the Additional Notes are to be delivered (such date and time being herein referred to as the “additional time of purchase”); provided, however, that the
additional time of purchase shall not be earlier than (i) the time of purchase or (ii) the second business day1 after the date on which the option shall have been exercised, nor later than the tenth business day after the date on which the option
shall have been exercised. The principal amount of Additional Notes to be sold to each Initial Purchaser shall be the principal amount which bears the same proportion to the aggregate principal amount of Additional Notes being purchased as the
principal amount of Firm Notes set forth opposite the name of such Initial Purchaser on Schedule A hereto bears to the aggregate principal amount of Firm Notes, subject to adjustment in accordance with Section 10 hereof.

                    2.         Payment and Delivery:   Payment of
the purchase price for the Firm Notes shall be made to the Company by Federal (same day) funds, against delivery of the Firm Notes to you, at the offices of Dewey Ballantine LLP in New York, New York, or at such other place as may be agreed upon by
the parties hereto, for the respective accounts of the Initial Purchasers. Such payment and delivery shall be made at 10:00 A.M.,
 
 1
As used herein “business day” shall mean a day on which the nasdaq National Market is open for quotation.
 2

  eastern daylight time, on June 23, 2003 (unless another time shall be agreed to by you and the Company). The time at which such payment and delivery are actually made is herein
sometimes called the “time of purchase.”
                     Payment of the purchase
price for the Additional Notes shall be made at the additional time of purchase in the same manner and at the same office and time of day as the payment for the Firm Notes.
                     Certificates for the Notes shall be in definitive form or global form, as specified by you, and registered
in the names and in such denominations as you shall request in writing not later than two business days prior to the time of purchase or the additional time of purchase, as the case may be. For the purpose of expediting the checking of the
certificates for the Notes by you, the Company agrees to make such certificates available to you for such purpose at least one business day preceding the time of purchase or the additional time of purchase, as the case may be.
                     3.         Representations and Warranties of the
Company:   The Company represents and warrants to each of the Initial Purchasers that:

	 	            (a)      (i) the Preliminary Memorandum, as of its date and as of the date of any amendment or supplement thereto did
not, and as of the date hereof does not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and (ii) the
Final Memorandum, as of its date will not and as may be further amended or supplemented will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;  provided, however, that the representations and warranties set forth in this paragraph do not apply to statements or omissions in either Memorandum based upon information
relating to any Initial Purchaser furnished to the Company in writing by or on behalf of such Initial Purchaser expressly for use therein;

 

	 	            (b)      as of the date of this Agreement, the Company’s capitalization is as set forth under the heading entitled
“Actual” in the section of the Final Memorandum entitled “Capitalization” and, as of the time of purchase and the additional time of purchase, as the case may be, the Company’s capitalization shall be as set forth under the
heading entitled “As Adjusted” in the section of the Final Memorandum entitled “Capitalization” (subject, in each case, to the issuance of shares of Common Stock upon exercise of stock options and warrants disclosed as
outstanding in the Final Memorandum or stock options thereafter granted under the Company’s stock option plans and restricted stock granted pursuant to compensatory grants to consultants, each as disclosed in the Final Memorandum; all of the
issued and outstanding shares of capital stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable, have been issued in compliance with all federal and state 

 
 3

	 	 
	 	securities laws and were not issued in violation of any preemptive right, resale right, right of first refusal or similar right;

 

	 	            (c)      the Company has been duly incorporated and is validly existing as a corporation in good standing under the
laws of the State of Delaware, with the requisite corporate power and authority to own, lease and operate its properties and conduct its business as described in the Final Memorandum;

 

	 	            (d)      the Company is duly qualified to do business as a foreign corporation and is in good standing in the State of
California, such State being the only jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification; the Company has no subsidiaries (as defined in the Act) other than as listed in Schedule
A annexed hereto (the “Subsidiaries”); except (i) as described in the Final Memorandum and (ii) except for the exchangeable shares issued by BioMarin Delivery Canada Inc. to the former shareholders of BioMarin Pharmaceutical
(Canada) Inc. (formerly known as Synapse Technologies Inc.) which have no material rights other than the right to receive future contingency milestone payments as described in the Final Memorandum, the Company owns, directly or indirectly, 100% of
the outstanding capital stock of the Subsidiaries; except for the Subsidiaries or as described in the Final Memorandum, the Company does not own, directly or indirectly, any long-term debt or any equity interest in any firm, corporation,
partnership, joint venture, association or other entity; complete and correct copies of the certificates or articles of incorporation and of the bylaws of the Company and each of the corporate Subsidiaries and the operating agreements of each
limited liability company Subsidiary and all amendments thereto have been delivered to you;

 

	 	            (e)      each of the Subsidiaries that is a corporation has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, with the requisite corporate power and authority to own, lease, and operate its properties and to conduct its business; each of the Subsidiaries that is a limited
liability company has been duly formed and is validly existing as limited liability company in good standing under the laws of the jurisdiction of its formation, with the requisite limited liability company power and authority to own, lease, and
operate its properties and to conduct its business;

 

	 	            (f)      each of the Subsidiaries is duly qualified to do business as a foreign corporation or limited liability
company and is in good standing in each jurisdiction where the ownership or leasing of the properties or the conduct of its business requires such qualification, except where the failure to so qualify could not reasonably be expected to have a
material adverse effect on the business, operations, prospects, properties, condition (financial or otherwise) or results of operation of the Company and the Subsidiaries (as hereinafter defined) taken as a whole (a “Material Adverse
Effect”); each of the Subsidiaries (other than BioMarin Genetics, Inc., BioMarin Holdings (Del.) Inc. and BioMarin 

 
 4

	 	 
	 	Acquisition (Del.) Inc.) incorporated or organized in accordance with the laws of the State of Delaware is duly qualified to do business as a foreign corporation or limited liability company, as the case may be, and
is in good standing in the State of California, such State being the only jurisdiction where the ownership or leasing of the properties or the conduct of its business requires such qualification;

 

	 	            (g)      all of the outstanding shares of capital stock of each of the corporate Subsidiaries have been duly authorized
and validly issued, are fully paid and non-assessable, have been issued in compliance with all applicable securities laws and were not issued in violation of any preemptive right, right of first refusal or similar right; all capital contributions
required to be made by the Company through the date hereof with respect to the outstanding membership interests of BioMarin/Genzyme LLC held by the Company have been made; all outstanding membership interests in BioMarin/Genzyme LLC were issued and
sold in compliance with the applicable operating agreements of such company and all applicable federal and state securities laws, and, except as set forth in the Final Memorandum and the operating agreements of such company and the Collaboration
Agreement dated as of September 4, 1998 with respect to BioMarin/Genzyme LLC, the membership interests therein held directly or indirectly by the Company are owned free and clear of all security interests, liens, encumbrances and equities and claims
and the Company has not granted any options, warrants or other rights to purchase, or entered into any agreements or incurred any obligation to issue or granted any rights to convert any obligations into ownership interests in BioMarin/Genzyme LLC;
the BioMarin/Genzyme LLC operating agreement pursuant to which the Company holds its membership interest in BioMarin/Genzyme LLC constitutes the legal, valid and binding agreement of the Company, enforceable against the Company in accordance with
the terms thereof, except as enforcement thereof may be limited by bankruptcy, insolvency, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles and,
to the Company’s knowledge, is in full force and effect; there has been no material breach of or default under, and no event which with notice or lapse of time would constitute a material breach of or default under, such operating agreement by
the Company or, to the Company’s knowledge, any other party to such agreement;

 

	 	            (h)      neither the Company nor any of the Subsidiaries is in breach or violation of, or in default under (nor has any
event occurred which with notice, lapse of time, or both would result in any breach or violation of, or constitute a default under) (each such breach, violation, default or event, a “Default Event”), (i) its charter, by-laws or
other organizational documents, (ii) any obligation, agreement, covenant or condition contained in any license, permit, indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any lease, contract or
other agreement or instrument to which the Company or any of the Subsidiaries is a party or by which any of them or any of their properties is bound or affected, (iii) any federal, state, local or foreign law, regulation or rule or (iv) any decree,
judgment or order applicable to the Company, any of the Subsidiaries or any of their respective properties, other

 
 5

	 	 
	 	than, in the case of clauses (ii) and (iii), such Default Events as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and the execution, delivery and performance
of this Agreement, the Registration Rights Agreement, the Indenture and the Notes, including the issuance and sale of the Notes, the Exempt Resales and the issuance of the Shares upon conversion of the Notes and the consummation of the other
transactions contemplated hereby, does not constitute and will not result in a Default Event under (w) any provisions of the charter, by-laws or other organizational documents of the Company or any of the Subsidiaries, (x) under any provision of any
license, permit, indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any lease, contract or other agreement or instrument to which the Company or any of the Subsidiaries or by which any of them or
their respective properties may be bound or affected, (y) under any federal, state, local or foreign law, regulation or rule or (z) under any decree, judgment or order applicable to the Company, any of the Subsidiaries or any of their respective
properties, except, in the case of clause (x) for such Default Events as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

 

	 	            (i)      this Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and
binding agreement of the Company;

 

	 	            (j)      the Indenture has been duly authorized by the Company and when executed and delivered by the Company and the
other parties thereto will be a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
fraudulent conveyance, fraudulent transfer, moratorium or similar laws affecting creditors’ rights generally and general principles of equity;

 

	 	            (k)      the Registration Rights Agreement has been duly authorized by the Company and when executed and delivered by
the Company and the other parties thereto will be a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, fraudulent conveyance, fraudulent transfer, moratorium or similar laws affecting creditors’ rights generally and general principles of equity and except to the extent that rights to indemnity may be limited by applicable
law;

 

	 	            (l)      the Notes have been duly authorized by the Company and when executed and delivered by the Company and duly
authenticated in accordance with the terms of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms hereof will constitute legal, valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, fraudulent 

 
 6

	 	 
	 	transfer, moratorium or similar laws affecting creditors’ rights generally and general principles of equity, and will be entitled to the benefits of the Indenture and the Registration Rights Agreement; the
Shares issuable upon conversion of the Notes have been duly authorized and validly reserved for issuance upon conversion of the Notes, and upon conversion of the Notes in accordance with their terms and the terms of the Indenture will be issued free
of statutory and contractual preemptive rights granted by the Company and are sufficient in number to meet the current conversion requirements as provided in the Indenture, and such Shares, when so issued upon such conversion in accordance with the
terms of the Indenture, will be validly issued and fully paid and nonassessable;

 

	 	            (m)      the terms of the Notes, the Registration Rights Agreement, the Indenture and the capital stock of the Company,
including the Shares, conform in all material respects to the description thereof contained in the Final Memorandum;

 

	 	            (n)      no approval, authorization, consent or order of or filing with any national, state, local or other
governmental or regulatory commission, board, body, authority or agency is required to be obtained or made by the Company or any of the Subsidiaries in connection with the issuance and sale of the Notes, the Exempt Resales or the issuance of Shares
upon conversion of the Notes or the consummation by the Company of the other transactions contemplated hereby and by the Indenture, the Registration Rights Agreement and the Notes other than registration of the resale of the Notes and Shares under
the Act as provided in the Registration Rights Agreement, any necessary qualification under the securities or blue sky laws of the various jurisdictions in which the Shares are being offered by the Initial Purchasers, any necessary registration or
filings under the Exchange Act and the approvals required to be obtained after the date hereof, if any, with respect to the listing of the Shares on the Swiss SWX New Market (“SWX”) and on the Nasdaq National Market
(“Nasdaq”), each of which shall be obtained on a timely basis;

 

	 	            (o)      except as set forth in the Final Memorandum, (i) no person has the right, contractual or otherwise, to cause
the Company to issue or sell to it any shares of Common Stock or shares of any other capital stock or other securities of the Company, (ii) no person has any preemptive rights, resale rights, rights of first refusal or other rights to purchase any
shares of Common Stock or shares of any other capital stock or other equity interests of the Company, and (iii) no person has the right to act as an initial purchaser, or as a financial advisor to the Company, in connection with the offer and sale
of the Notes, in the case of each of the foregoing clauses (i), (ii) and (iii), whether as a result of the sale of the Notes as contemplated hereby or otherwise, or, in the case of each of the foregoing clauses (i) and (ii), except for right s that
will be complied with as the parties have agreed; no person has the right, contractual or otherwise, to cause the Company to register under the Act any shares of Common Stock or shares of any other capital stock or other securities of the Company,
or to include any such shares or securities in the registration statement to be filed with the Commission

 
 7

	 	 
	 	pursuant to the Registration Rights Agreement as a result of the sale of the Notes as contemplated hereby or otherwise, except for such rights as have been or will be complied with or have been waived;

 

	 	            (p)      KPMG LLP, whose report on the consolidated financial statements of the Company and the Subsidiaries is filed
with the Commission and incorporated by reference in the Final Memorandum, are independent public accountants as required by the Act and the Exchange Act. Arthur Andersen LLP previously served as the Company’s auditors and as the auditors of
IBEX Technologies Inc./Technologies IBEX Inc. – Therapeutics Enzymes Division and Glyko Biomedical Ltd., and during such service, were independent public accountants as required by the Exchange Act. During the Company’s last two fiscal
years, (i) the Company has not had any disagreements (as described in Item 304(a)(1)(iv) of Regulation S-K) with either KPMG LLP or Arthur Andersen LLP and (ii) neither KPMG LLP or Arthur Andersen LLP advised the Company of any reportable event (as
described in Item 304(a)(1)(v) of Regulation S-K);

 

	 	            (q)      except as disclosed in the Final Memorandum, and except for the approvals required to be obtained after the
date hereof, if any, with respect to the listing of the Shares on the SWX, the Company and each of the Subsidiaries has all necessary licenses, permits, authorizations, consents and approvals and has made all necessary filings required under any
federal, state, local or foreign law, regulation or rule (collectively, “Permits”), and has obtained all necessary authorizations, consents and approvals from other persons (collectively, “Approvals”), in order to
conduct its business as currently conducted as described in the Final Memorandum, other than such Permits and Approvals the failure of which to obtain could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect; neither the Company nor any of the Subsidiaries is in violation of, or in default under, any such Permit or Approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company
or any of the Subsidiaries the effect of which could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

 

	 	            (r)      all legal or governmental proceedings, contracts, leases or documents of a character required to be described
in any Incorporated Document or to be filed as an exhibit to any Incorporated Document have been so described or filed as required;

 

	 	            (s)      except as disclosed in the Final Memorandum, there are no actions, suits, claims, investigations or
proceedings pending or, to the Company’s knowledge, threatened to which the Company or any of the Subsidiaries, or to the Company’s knowledge any of their respective directors or officers, is a party or of which any of their respective
properties is subject at law or in equity, or before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency which, if adversely decided, could reasonably be expected to result in a
judgment, decree or order having a Material Adverse Effect 

 
 8

	 	 
	 	or prevent consummation of the transactions contemplated hereby and by the Indenture, the Registration Rights Agreement and the Notes;

 

	 	            (t)      the financial statements, together with the related schedules and notes, included in the Final Memorandum
present fairly the consolidated financial position of the Company and the Subsidiaries as of the dates indicated and the consolidated results of operations and cash flows of the Company and the Subsidiaries for the periods specified and have been
prepared in compliance with the requirements of the Act and in conformity with generally accepted accounting principles applied on a consistent basis during the periods involved; any pro forma financial statements or data included in the Final
Memorandum comply as to form in all material respects with the applicable accounting requirements of Regulation S-X of the Act, and the pro forma adjustments have been properly applied to the historical amounts in the compilation of those
statements; the other financial and statistical data set forth in the Final Memorandum are accurately presented and prepared on a basis consistent with such financial statements and books and records of the Company; and there are no financial
statements (historical or pro forma) that are required to be included in the Final Memorandum that are not included as required;

	 	            (u)      subsequent to the respective dates as of which information is given in the Final Memorandum, there has not
been (i) any material adverse change, or any development that could reasonably be expected to have a prospective material adverse change, in the business, operations, properties, condition (financial or otherwise) or results of operations of the
Company and the Subsidiaries taken as a whole, (ii) any transaction which is material to the Company or any of the Subsidiaries taken as a whole, (iii) any obligation, direct or contingent, which is material to the Company and the Subsidiaries taken
as a whole, incurred by the Company or any of the Subsidiaries, (iv) any change in the capital stock or outstanding indebtedness of the Company or any of the Subsidiaries (other than pursuant to the exercise of stock options or warrants described in
the Final Memorandum as outstanding or the grant of stock options under stock option plans and restricted stock granted pursuant to compensatory grants to consultants, each as described in the Final Memorandum) that is material to the Company and
its Subsidiaries, taken as a whole or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company; neither the Company nor any of the Subsidiaries has any material contingent obligation which is not
disclosed in the Final Memorandum;

 

	 	            (v)      the Company has obtained for the benefit of the Initial Purchasers the agreement (a “Lock-Up
Agreement”), in the form set forth as Exhibit B hereto, of each of its officers and directors; the Company will not release or purport to release any of its officers or directors from any Lock-Up Agreement without the prior written
consent of UBS Securities LLC;

 

	 	            (w)      the Company is not and, immediately after giving effect to the offering and sale of the Notes, will not be an
“investment company” or an 

 
 9

	 	 
	 	entity “controlled” by an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”);

 

	 	            (x)      any statistical and market-related data included in the Final Memorandum are based on or derived from sources
that the Company believes to be reliable and accurate, and the Company has obtained the written consent to the use of such data from such sources to the extent required;

 

	 	            (y)      neither the Company nor any of the Subsidiaries nor any of their respective officers, directors and controlled
affiliates or, to the Company’s knowledge, other affiliates has taken, directly or indirectly, any action designed to or which has constituted or which might reasonably be expected to cause or result, under the Exchange Act or otherwise, in the
stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Notes or Shares issuable upon conversion of the Notes;

 

	 	            (z)      the Incorporated Documents, when they were filed with the Commission, conformed in all material respects to
the requirements of the Exchange Act, and none of such documents, when they were filed with the Commission, contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein not misleading;
and any further documents so filed and incorporated by reference in the Final Memorandum, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act, as applicable, and will not
contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

	 	            (aa)      the Company and each of the Subsidiaries maintain insurance of the types and in amounts reasonable in light
of their respective businesses and the cost and availability of such insurance, including, but not limited to, insurance covering real and personal property owned or leased by the Company and each of the Subsidiaries against theft, damage,
destruction, acts of vandalism and other risks customarily insured against, all of which insurance is in full force and effect;

 

	 	            (bb)      neither the Company nor any of the Subsidiaries has sustained since the date of the latest financial
statements included in the Final Memorandum any losses or interferences with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree,
otherwise than as set forth or contemplated in the Final Memorandum or other than any losses or interferences which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

	 	            (cc)      the Company and each of the Subsidiaries have good title to all personal property owned by them as described
in the Final Memorandum,

 
 10

	 	 
	 	free and clear of all liens, encumbrances and defects except such as are described in the Final Memorandum or such as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect; except as described in the Final Memorandum, any property and buildings held under lease by the Company or any of the Subsidiaries are held by it under valid, subsisting and enforceable leases with such exceptions as are not material and do
not interfere with the use made and proposed to be made of such property and buildings by the Company or any of the Subsidiaries, as the case may be;

 

	 	            (dd)      neither the Company nor any of the Subsidiaries has violated any foreign, federal, state or local law or
regulation relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants, nor any federal or state law relating to discrimination in the hiring, promotion or pay of
employees nor any applicable federal or state wages and hours laws, nor any provisions of the Employee Retirement Income Security Act or the rules and regulations promulgated thereunder, which could, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect;

 

	 	            (ee)      the Company and each of the Subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; the chief executive officer and principal financial officer of the Company have made all certifications required by the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and any related rules and regulations promulgated by the Commission, and the statements contained in any such certification are complete and correct; the Company maintains
“disclosure controls and procedures” (as defined in Rule 13a-14(c) under the Exchange Act); the Company is otherwise in compliance in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act;

 

	 	            (ff)      all tax returns required to be filed by the Company and each of the Subsidiaries have been filed, other than
those filings being contested in good faith, and all taxes, including withholding taxes, penalties and interest, assessments, fees and other charges due pursuant to such returns or pursuant to any assessment received by the Company or any of the
Subsidiaries have been paid, other than those being contested in good faith and for which adequate reserves have been provided;

 

	 	            (gg)      other than as set forth in the Final Memorandum, or as would not individually or in the aggregate have a
Material Adverse Effect, the 

 
 11

	 	 
	 	Company and the Subsidiaries own, possess, license or have other rights to use, all patents, copyrights, trade secrets, information, proprietary rights and processes (“Intellectual Property”)
necessary for the conduct of their business as presently conducted as described in the Final Memorandum; except as described in the Final Memorandum, the Company has no knowledge of any options, licenses or agreements of any kind relating to the
Intellectual Property of the Company or the Subsidiaries that are outstanding and which are required to be described in the Incorporated Documents, and, except as described in the Final Memorandum, neither the Company nor any of the Subsidiaries is
a party to or bound by any options, licenses or agreements with respect to the Intellectual Property of any other person or entity which are required to be described in the Incorporated Documents; none of the technology employed by the Company and
the Subsidiaries has been obtained or is used or proposed to be used by the Company or the Subsidiaries in violation of any contractual obligation binding on the Company or the Subsidiaries or, to the Company’s knowledge, any of their
respective directors, executive officers or employees or otherwise in violation of the rights of any persons, other than any violation which would not individually or in the aggregate have a Material Adverse Effect; except as described in the Final
Memorandum, to the Company’s knowledge neither the Company nor any of the Subsidiaries has violated, infringed or conflicted with, or, by conducting its business as described in the Final Memorandum and commercializing the products under
development described therein, would violate, infringe or conflict with any of the Intellectual Property of any other person or entity other than any such violation, infringement or conflict which would not individually or in the aggregate have a
Material Adverse Effect; and

 

	 	            (hh)      the clinical, pre-clinical and other studies and tests conducted by or on behalf of or sponsored by the
Company or any Subsidiary or in which the Company, any Subsidiary or its products or product candidates have participated that are described in the Final Memorandum or the results of which are referred to in the Final Memorandum were and, if still
pending, are being conducted in accordance with accepted medical and scientific research procedures; the descriptions in the Final Memorandum of the results of such studies and tests are accurate in all material respects and fairly present the data
derived from such studies and tests (in the case of each study and test performed by outside third parties, with reference to the information regarding such studies and tests provided to the Company by such third parties), and the Company and each
Subsidiary has no knowledge of any other studies or tests the results of which are inconsistent with or otherwise call into question the results described or referred to in the Final Memorandum; except to the extent disclosed in the Final
Memorandum, the Company and each Subsidiary has operated and currently is in compliance in all material respects with all applicable rules, regulations and policies of the U.S. Food and Drug Administration and comparable drug regulatory agencies
outside of the United States applicable to the Company (collectively, the “Regulatory Authorities”); and except to the extent disclosed in the Final Memorandum, the Company has not received any notices or other correspondence from
the Regulatory Authorities or any other governmental

 
 12

	 	agency requiring the termination, suspension or modification of any pending clinical or pre-clinical studies or tests that are described in the Final Memorandum or the results of which are referred to in the Final
Memorandum.

 

	 	            (ii)         When the Notes are issued pursuant to this Agreement, the Notes will not be of the
same class (within the meaning of Rule 144A) as securities that are listed on a national securities exchange registered pursuant to Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation system;

	 	            (jj)         Neither the Company nor any affiliate (as defined in Rule 501(b) of Regulation D under
the Act, an “Affiliate”) of the Company has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Act) which is or will be
integrated with the sale of the Notes or the Exempt Resales in a manner that would require the registration under the Act of the offer or sale of the Notes or (ii) offered, solicited offers to buy or sold the Notes by any form of general
solicitation or general advertising (as those terms are used in Regulation D under the Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Act;

 

	 	            (kk)         Based on the representations of the Initial Purchasers under Section 4, it is not
necessary in connection with the offer, sale and delivery of the Notes to the Initial Purchasers pursuant to this Agreement, or in connection with the Exempt Resales, to register the offer or sale of the Notes or the Shares under the Act or to
qualify the Indenture under the Trust Indenture Act of 1939, as amended;

 

	 	            (ll)         The Company satisfies all conditions for the use of a registration statement on Form
S-3 to register the Notes, and the Shares issuable upon conversion of the Notes, for resale.

 
                     4.         Representations and Warranties of the Initial
Purchasers. The Initial Purchasers propose to offer the Notes for sale upon the terms and conditions set forth in this Agreement and the Final Memorandum, and each Initial Purchaser hereby represents and warrants to and agrees with the Company
that:

	 	                     (a)               
  It will offer and sell the Notes only to persons whom it reasonably believes are “qualified institutional buyers” (“QIBs”) within the meaning of Rule 144A in transactions meeting the requirements of Rule 144A
and that, in purchasing such Notes, are deemed to have represented and agreed as provided in the Final Memorandum under the caption “Notice to Investors”;

 

	 	                     (b)               
  It is a QIB within the meaning of Rule 144A;

 

	 	                     (c)               
  It has not and will not, directly or indirectly, solicit offers for, or offer or sell, the Notes by any form of general solicitation, general

 
 13

  advertising (as such terms are used in Regulation D) or in any manner involving a public offering within the meaning of Section 4(2) of the Act; and

	 	                     (d)               
 With respect to offers and sales outside the United States:

 

	 	                      (i)          
       It understands that no action has been or will be taken in any jurisdiction by the Company that would permit a public offering of the Notes, or possession or distribution of either Memorandum or any other
offering or publicity material relating to the Notes, in any country or jurisdiction where action for that purpose is required; and

 

	 	                      (ii)       
        The offer and sale of the Notes have not been registered under the Act and may not be offered or sold except in accordance with Rule 144A.

 

	 	                      (iii)      
        It has:

 

	 	 	 
	 	(1) 	 not offered or sold and, prior to the date six months after the date of issue of the Notes, will not offer or sell any Notes to persons in the United Kingdom except to persons whose ordinary activities
involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in the United
Kingdom within the meaning of the Public Offers of Securities Regulations 1995;

 

	 	 	 
	 	(2)	only communicated or caused to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act of 2000) (the
“FSMA”) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the issuer; and

 

	 	 	 
	 	(3)	complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes and the Shares issuable upon conversions of the Notes in, from or otherwise
involving the United Kingdom.

 
                        
  5.                Certain Covenants of the Company: The Company hereby agrees that:
 14

	 	                     (a)             The
Company will prepare the Final Memorandum in a form approved by the Initial Purchasers and will make no amendment or supplement to the Final Memorandum which shall reasonably be disapproved by the Initial Purchasers promptly after reasonable notice
thereof;

 

	 	                     (b)               
  Promptly from time to time, the Company will take such action as the Initial Purchasers may reasonably request to qualify the Notes and the Shares for offering and sale under the securities laws of such jurisdictions as the Initial
Purchasers may request and will comply with such laws so as to permit the continuance of sales and dealing therein in such jurisdictions for as long as may be necessary to complete the distribution of the Notes; provided, that in connection
therewith the Company shall not be required to qualify as a foreign corporation, to file a general consent to service of process or subject itself to any tax in any such jurisdiction where it is not now so qualified or subject;

 

	 	                     (c)               
  The Company will furnish the Initial Purchasers with as many copies of the Final Memorandum, any documents incorporated by reference therein and any amendment or supplement thereto as the Initial Purchasers may from time to time
reasonably request, and if, at any time prior to the completion of the resale of the Notes by the Initial Purchasers, any event shall have occurred as a result of which the Final Memorandum as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Final Memorandum is delivered, not misleading, or, if for any
other reason it shall be necessary or desirable during such same period to amend or supplement the Final Memorandum, the Company will notify the Initial Purchasers and upon the request of the Initial Purchasers will prepare and furnish without
charge to the Initial Purchasers and to any dealer in securities as many copies as the Initial Purchasers may from time to time reasonably request of an amended Final Memorandum or a supplement to the Final Memorandum which will correct such
statement or omission or effect such compliance;

 

	 	                     (d)               
  During the period beginning from the date hereof and continuing until the date that is ninety (90) days after the date of the Final Memorandum, the Company will not sell, offer or agree to sell, contract to sell, hypothecate, pledge,
grant any option to sell or otherwise dispose of, directly or indirectly, any Notes or Shares of Common Stock, any securities substantially similar to the Notes or the Common Stock, any securities that are convertible into or exchangeable for shares
of Common Stock, any debt securities or any securities that are convertible into or exchangeable for the Notes or such other debt securities without the prior written consent of UBS Securities LLC, except for (i) the issuance of the Notes (or the
Shares issued upon conversion thereof), (ii) issuances of Common Stock upon the exercise of options or warrants disclosed as outstanding in the Final Memorandum, (iii) the issuance of employee stock options not exercisable during the Lock-up Period
pursuant to stock option 

 
 15

	 	plans described in the Final Memorandum and (iv) compensatory grants of restricted stock or stock options, not exceeding 10,000 shares, to our consultants;

 

	 	                     (e)               
  At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act and so long as any of the Notes (or Shares issued upon conversion thereof) are “restricted securities” within the meaning of Rule 144(a)(3)
under the Act, for the benefit of holders from time to time of the Notes, the Company will furnish at its expense, upon request, to holders and beneficial owners of Notes and prospective purchasers of Notes information satisfying the requirements of
subsection (d)(4)(i) of Rule 144A;

 

	 	                     (f)               
  The Company will use its reasonable best efforts to cause the Notes to be eligible for trading in PORTAL;

 

	 	                     (g)               
  For so long as the Notes remain outstanding, the Company will furnish to the Initial Purchasers (i) copies of any reports or other communications which the Company shall send to its stockholders, (ii) copies of all annual, quarterly and
current reports filed with the Commission on Forms 10-K, 10-Q and 8-K, or such other similar forms, as may be designated by the Commission, and (iii) copies of documents or reports filed with any national securities exchange on which any class of
securities of the Company is listed;

 

	 	                     (h)               
  The Company will use the net proceeds received by it from the sale of the Notes pursuant to this Agreement in the manner specified in the Final Memorandum under the caption “Use of Proceeds”;

 

	 	                     (i)               
  The Company will reserve and keep available at all times free of preemptive rights, Shares for the purpose of enabling the Company to satisfy any obligations to issue Shares upon conversion of the Notes;

 

	 	                     (j)               
  The Company will use its reasonable best efforts to list, as promptly as practicable but in no event later than the time that the registration statement is declared effective in accordance with the Registration Rights Agreement, and
subject to notice of issuance, the Shares on the Nasdaq National Market;

 

	 	                     (k)               
  Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, the Company will pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement,
including, without limitation, (i) the fees, disbursements and expenses of the Company’s counsel and the Company’s accountants in connection with the issuance and sale of the Notes and the Exempt Resales and all other fees and expenses in
connection with the preparation of each Memorandum and all amendments and supplements thereto, including all printing costs associated therewith, and the furnishing of copies thereof to the Initial Purchasers and to dealers (including costs of
mailing and shipment), (ii) all costs related to the preparation, issuance, execution, authentication and delivery of the Notes and

 
 16

	 	 the Shares, (iii) all costs related to the transfer and delivery of the Notes to the Initial Purchasers, including any transfer or other taxes payable thereon, (iv) all expenses in connection with the
qualification of the Notes and the Shares for offering and sale under state laws and the cost of printing and furnishing of copies of any blue sky or legal investment memorandum to the Initial Purchasers and to dealers (including filing fees and the
fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with such blue sky or legal investment memorandum), (v) the costs and charges of the Trustee and any transfer agent, registrar or
depositary, (vi) the fees and expenses, if any, incurred in connection with the admission of the Notes for trading in PORTAL or any appropriate market system, (vii) the costs and expenses of the Company relating to presentations or meetings
undertaken in connection with the marketing of the offering of the Notes to prospective investors and the Initial Purchasers’ sales forces, including, without limitation, expenses associated with the production of road show slides and graphics,
fees and expenses of any consultants engaged in connection with the road show presentations, travel, lodging and other expenses incurred by the officers of the Company and any such consultants, and the cost of aircraft chartered, if any, in
connection with the road show, and (viii) all other cost and expenses incident to the performance of the Company’s obligations hereunder for which provision is not otherwise made in this Section 5(k);
 

 

	 	                     (l)               
  Neither the Company nor any Affiliate of the Company will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Act) which could be integrated with the sale of the Notes in a
manner which would require their registration under the Act of the Notes;

 

	 	                     (m)               
  The Company will not solicit any offer to buy or make any offer or sell the Notes or the Shares by means of any form of general solicitation or general advertising (as those terms are used in Regulation D) or in any manner involving a
public offering within the meaning of Section 4(2) of the Act;

 

	 	                     (n)               
  During the period of two years after the time of purchase or the additional time of purchase, if later, the Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Act (“Rule 144”))
to resell any of the Notes or the Shares which constitute “restricted securities” under Rule 144 that have been reacquired by any of them except pursuant to an effective registration statement under the Act; and

	 	                     (o)               
  The Company will not take any action prohibited by Regulation M under the Exchange Act in connection with the distribution of the Notes contemplated hereby.

 
                           6.           
    Reimbursement of Initial Purchasers’ Expenses: If the Firm Notes are not delivered for any reason other than the default by one or more of the Initial Purchasers in their obligations hereunder, the
Company shall, in addition to paying the
 17

  amounts described in Section 5(k) hereof, reimburse the Initial Purchasers for all of their out-of-pocket expenses, including the reasonable fees and disbursements of their
counsel.
                     7.     Conditions of Initial Purchasers’
Obligations: The several obligations of the Initial Purchasers hereunder are subject to the accuracy of the representations and warranties on the part of the Company on the date hereof and at the time of purchase. The several obligations of the
Initial Purchasers at the additional time of purchase are subject to the accuracy of the representations and warranties on the part of the Company on the date hereof, at the time of purchase (unless previously waived) and at the additional time of
purchase, as the case may be. Additionally, the several obligations of the Initial Purchasers hereunder are subject to performance by the Company of its obligations hereunder and to the following conditions precedent:

	 	         (a)     You shall have received, at the time of purchase and at the additional time of purchase, as the case may be, an opinion of Paul,
Hastings, Janofsky & Walker LLP, counsel for the Company, addressed to the Initial Purchasers, and dated the time of purchase or the additional time of purchase, as the case may be, with reproduced copies for each of the other Initial Purchasers
and in form reasonably satisfactory to Dewey Ballantine LLP, counsel for the Initial Purchasers, stating that:

 

	 	          (i)      the Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the
State of Delaware. The Company has full corporate power and authority to own, lease and operate its properties and conduct its business as described in the Final Memorandum, to execute and deliver this Agreement and to issue, sell and deliver the
Notes as herein contemplated;

 

	 	           (ii)     (a) each of the corporate Subsidiaries, other than BioMarin Pharmaceutical Nova Scotia Company, BioMarin
Pharmaceutical Delivery Nova Scotia Company, BioMarin Holdings (Nova Scotia) Company, BioMarin Acquisitions (Nova Scotia) Company, BioMarin Pharmaceutical (Canada) Inc. BioMarin Delivery Canada Inc. and Glyko BioMedical Ltd. (collectively, the
“Canadian Subsidiaries”), as to which such counsel need express no opinion) has been duly incorporated and is validly existing as a corporation is in good standing under the laws of its jurisdiction of incorporation with the
corporate power and authority to own, lease and operate its properties and conduct its business as described in the Final Memorandum; (b) BioMarin/Genzyme LLC has been duly formed and is validly existing as a limited liability company in good
standing under the laws of Delaware with the limited liability company power and authority to own, lease and operate its properties and conduct its business as described in the Final Memorandum;

 

	 	           (iii)    each of the Company and each Subsidiary (other than the Canadian Subsidiaries, BioMarin Genetics, Inc., BioMarin

 
 18

	 	 
	 	Acquisition (Del.) Inc., BioMarin Holdings (Del.) Inc., and Glyko, Inc., a California corporation) is duly qualified to transact business as a foreign corporation or limited liability company, as the case may be, in
the State of California and is in good standing in such jurisdiction;

 

	 	            (iv)     this Agreement has been duly authorized, executed and delivered by the Company;

	 	            (v)     the Registration Rights Agreement has been duly authorized, executed and delivered by the Company and
constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms except (A) as such enforcement may be limited by bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance,
fraudulent transfer and other similar laws affecting creditors’ rights generally, and by general equitable principles, whether applied in a proceeding at law or in equity, and (B) the rights to indemnity and contribution may be limited by
applicable law;

 

	 	            (vi)    the Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance with its terms except as such enforcement may be limited by bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance, fraudulent transfer and other similar laws
affecting creditors’ rights generally and by general equitable principles, whether applied in a proceeding at law or in equity;

 

	 	             (vii)  the Notes have been duly authorized, executed and delivered by the Company and when duly authenticated by the Trustee in
accordance with the terms of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms of the Purchase Agreement and the Indenture will constitute valid and binding obligations of the Company, enforceable in
accordance with their terms, except as such enforcement may be limited by bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance, fraudulent transfer and other similar laws affecting the creditors’ rights generally, and by
general equitable principles, whether applied in a proceeding at law or in equity, and will be entitled to the benefits of the Indenture;

 

	 	             (viii)  the Shares initially issuable upon conversion of the Notes have been duly authorized and reserved for issuance upon
conversion of the Notes, and when issued upon conversion of the Notes in accordance with their terms and the terms of the Indenture will be issued free of preemptive rights under the Delaware General Corporation Laws (the “DGCL”) or
any contract, commitment or instrument to which the Company or any of the Subsidiaries is a party and which is described in the Final Memorandum or filed as an exhibit to any Incorporated

 
 19

	 	 
	 	Document or identified by the Company to such counsel as material to the Company and the Subsidiaries, and such Shares, when so issued in accordance with the terms of the Indenture, will be validly issued and fully
paid and nonassessable; as of March 31, 2003, the Company had authorized and outstanding shares of capital stock as set forth under the heading “Actual” in the section of the Final Memorandum titled “Capitalization”; the
outstanding shares of capital stock of the Company (A) have been duly authorized and validly issued and are fully paid and non-assessable and (B) are free of preemptive rights under the DGCL or the charter of the Company; and the certificates for
the Shares comply in all material respects with the requirements of the DGCL and NASDAQ;

 

	 	                 (ix)     all of the outstanding shares of capital stock of the corporate Subsidiaries
(other than the Canadian Subsidiaries, as to which such counsel need express no opinion), have been duly authorized and validly issued, are fully paid and non-assessable, are owned of record by the Company (except as disclosed in the Final
Memorandum), are not, to such counsel’s knowledge, subject to any perfected security interest or, to such counsel’s knowledge, any other encumbrance or adverse claim; to such counsel’s knowledge, no options, warrants or other rights
to purchase, agreements or other obligations to issue or other rights to convert any obligation into shares of capital stock or ownership interests in any of the Subsidiaries (other than the Canadian Subsidiaries, as to which such counsel need
express no opinion) are outstanding;

 

	 	                 (x)     the statements in the Final Memorandum under the captions “Description of
notes” and “Description of capital stock,” insofar as they purport to constitute a summary of legal matters, are correct summaries in all material respects.

 

	 	                 (xi)     no approval, authorization, consent or order of or filing with any federal or
California governmental or regulatory commission, board, body, authority or agency with jurisdiction over the Company or the Subsidiaries is required in connection with the issuance and sale by the Company of the Notes pursuant to this Agreement, or
the issuance of Shares upon conversion of the Notes pursuant to the Indenture, assuming all of such Shares are issued upon conversion of such Notes as of the date of such opinion, or the consummation of the transactions as contemplated hereby and by
the Indenture, the Registration Rights Agreement and the Notes; provided, however, that such counsel need express no opinion with respect to the Act, the Exchange Act or the Trust Indenture Act of 1939 (except, in each instance, as
expressly set forth herein), the state securities or blue sky laws of the various jurisdictions in which the Notes are being offered by the Initial Purchasers, Nasdaq or any approval of the SWX;

 
 20

	 	                 (xii)     the execution, delivery and performance of this Agreement, the Registration
Rights Agreement, the Indenture and the Notes by the Company, including the consummation of the transactions contemplated hereby and thereby, do not constitute, whether with the giving of notice or the passage of time or both, a Default Event
pursuant to (A) any provision of the charter or bylaws or other organizational documents of the Company or any of the Subsidiaries (other than the Canadian Subsidiaries, as to which such counsel need express no opinion), (B) any license, permit,
franchise, authorization issued to the Company or any of the Subsidiaries (other than the Canadian Subsidiaries, as to which such counsel need express no opinion), or any indenture, mortgage, deed of trust, note, bank loan or credit agreement or
other evidence of indebtedness, or any lease, contract or other agreement or instrument to which the Company or any of the Subsidiaries (other than the Canadian Subsidiaries, as to which such counsel need express no opinion) is a party filed as an
exhibit to any Incorporated Document or identified by the Company to such counsel as material to the Company or any of the Subsidiaries, as the case may be, (C) any federal or California or New York law, regulation or rule or (D) any federal or
California decree, judgment or order that is applicable to the Company or any of the Subsidiaries and that is identified to such counsel by the Company as material to the Company and the Subsidiaries, other than, in the case of clause (B) such
Default Events as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

 

	 	                 (xiii)     assuming (a) the respective representations and warranties of the Company and
the Initial Purchasers contained in this Agreement are true and correct, (b) compliance by the Company and the Initial Purchasers with their respective covenants set forth herein and (c) each person who purchases Notes from the Initial Purchasers
upon the initial resale of the Notes is a QIB, it is not necessary in connection with (i) the offer, sale and delivery of the Notes by the Company to the Initial Purchasers pursuant to this Agreement or (ii) the initial resales of the Notes by the
Initial Purchasers in the manner contemplated in this Agreement to register the Notes or the Shares under the Act or to qualify the Indenture in respect thereof under the Trust Indenture Act of 1939, as amended, it being understood that no opinion
is expressed as to any subsequent resale of any Note or Share;

 

	 	                 (xiv)     to such counsel’s knowledge, there are no contracts, licenses, agreements,
leases or documents of a character which are required to be filed as exhibits to the Incorporated Documents or to be summarized or described in the Incorporated Documents which have not been so filed, summarized or described;

 

	 	                 (xv)     to such counsel’s knowledge, there are no actions, suits, claims,
investigations or proceedings pending or threatened to which

 
 21

	 	the Company or any of the Subsidiaries is subject or of which any of their respective properties is subject, whether at law, in equity or before or by any federal or California governmental or regulatory commission,
board, body, authority or agency, which are required to be described in the Final Memorandum but are not so described;

 

	 	                 (xvi)     the Incorporated Documents (except as to the financial statements, notes and
schedules and other information of a financial, statistical or accounting nature contained therein or incorporated by reference, as to which such counsel need express no opinion) appear on their face to have complied as to form in all material
respects, at the time such documents were filed with the Commission, with the then applicable requirements of the Exchange Act;

 

	 	                 (xvii)     the Company is not and, immediately after giving effect to the offer and sale
of the Notes, will not be an “investment company” or an entity “controlled” by an “investment company,” as such terms are defined in the Investment Company Act;

 

	 	                 (xviii)     those statements (A) in the Final Memorandum under the captions “Risk
factors — If our joint venture with Genzyme were terminated, we could be barred from commercializing Aldurazyme or our ability to successfully commercialize Aldurazyme would be delayed or diminished,” “Risk factors —
Anti-takeover provisions in our charter documents, our stockholders’ rights plan and under Delaware law may make an acquisition of us, which may be beneficial to our stockholders, more difficult” and “Certain United States federal
income tax considerations,” (B) in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (the “10-K”) under the captions “Item 1. Description of Business — Factors that may affect future
results — If our joint venture with Genzyme were terminated, we could be barred from commercializing Aldurazyme or our ability to commercialize Aldurazyme would be delayed or diminished” and “Item 1. Description of Business
—Factors that may affect future results — Anti-takeover provisions in our charter documents, our stockholders’ rights plan and under Delaware law may make an acquisition of us, which may be beneficial to our stockholders, more
difficult,” (C) in the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2003 under the captions “Part I. Financial Information — Item 2. Management’s Discussion and Analysis of Financial Condition and
Results of Operations — Factors that may affect future results — If our joint venture with Genzyme were terminated, we could be barred from commercializing Aldurazyme or our ability to commercialize Aldurazyme would be delayed or
diminished” and “Part I. Financial Information — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors that may affect future results — Anti-takeover provisions in our
charter documents, our stockholders’ rights

 
 22

	 	 
	 	plan and under Delaware law may make an acquisition of us, which may be beneficial to the stockholders, more difficult,” and (D) in the Company’s Form 8-A filed with the Commission on July 15, 1999 pursuant
to Section 12(g) of the Exchange Act under the captions “Description of Capital Stock – Common Stock,” “Description of Capital Stock – Preferred Stock” and “Description of Capital Stock – Charter and Bylaw
Provisions,” to the extent such statements include descriptions of contracts, agreements or refer to statements of law or legal conclusions, are accurate in all material respects, except to the extent that such statements have been modified or
amended pursuant to statements subsequently filed with the Commission in reports listed herein;

 

	 	                 (xix)     no person, other than the parties to the Registration Rights Agreement, has the
right as a result of the transactions contemplated by the Registration Rights Agreement pursuant to the terms of any contract, agreement or other instrument described in the Final Memorandum or filed as an exhibit to Incorporated Document or, to
such counsel’s knowledge, any other contract, agreement or instrument to which the Company is a party to have any securities issued by the Company and owned by them registered pursuant to the Act and included in the registration statement to be
filed pursuant to the Registration Rights Agreement, except for such rights as have been complied with or waived;

 
                              In rendering any such opinion, such counsel may rely, as
to matters of fact, on certificates of officers of the Company and public officials. Such opinion may be limited solely to the application of the laws of the United States of America, the laws of the states of California and New York and the
Delaware General Corporation Law. All matters relating to intellectual property and food and drug regulatory matters may be excluded from such opinion. Such opinion may be subject to such other assumptions, qualifications, limitations and
definitions as are usual and customary in the rendering of such opinions in the aforementioned jurisdictions.
                             In addition, such counsel shall state that such counsel
has participated in conferences with officers and other representatives of the Company, representatives of the independent public accountants of the Company and representatives of the Initial Purchasers at which the contents of the Final Memorandum
were discussed and, although such counsel has not independently verified and is not passing upon and does not assume responsibility for the accuracy, completeness or fairness of the statements contained in the Final Memorandum (except as to the
extent stated, but only to the extent expressly stated, in such opinion), on the basis of the foregoing, relying as to materiality to a large extent on the representations of officers and other representatives of the Company, no fact has come to the
attention of such counsel which leads them to believe that the Final Memorandum or any amendment thereto, as of the date of the Final Memorandum or the date of such amendment, and as of the date of such opinion, contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (it being understood that such counsel need express
no
 23

  view with respect to the financial statements, notes and schedules thereto and other information of a financial, statistical or accounting nature included or incorporated by reference
in the Final Memorandum).

	 	          (b)      You shall have received, at the time of purchase and at the additional time of purchase, as the case may be, in the case
of clause (i), (ii) and (iv) below, an opinion of Stewart McKelvey Stirling Scales, Nova Scotia counsel for the Company, with respect to the Subsidiaries incorporated in Nova Scotia, Cassels Brock & Blackwell LLP, Canadian counsel for the
Company, with respect to the Subsidiaries incorporated pursuant to the Canada Business Corporations Act and McCullough, O’Connor Irwin, British Columbia counsel for the Company, with respect to the Subsidiary incorporated in British Columbia;
in the case of clause (iii) below, an opinion of Desjardins Ducharme Stein Monast, Quebec counsel to the Company; and in the case of clause (v) below, an opinion of Cassels Brock & Blackwell LLP, with respect to the Canadian Subsidiaries,
Canadian counsel for the Company, in each case, addressed to the Initial Purchasers, and dated the time of purchase or the additional time of purchase, as the case may be, and in form reasonably satisfactory to Dewey Ballantine LLP, counsel for the
Initial Purchasers, stating that:

 

	 	            (i)      each of the Canadian Subsidiaries has been duly incorporated and is validly existing as, in the case of the
Subsidiaries incorporated in Nova Scotia, an unlimited company, and in the case of all other Canadian Subsidiaries, a corporation, under the laws of its jurisdiction of incorporation with the corporate power and authority to own, lease and operate
its properties and conduct its business as described in the Final Memorandum;

 

	 	            (ii)      all of the outstanding shares of capital stock of the Canadian Subsidiaries have been duly authorized and
validly issued, are fully paid and non-assessable, are owned of record by the Company (except as disclosed in the Final Memorandum), are not, to such counsel’s knowledge, subject to any perfected security interest or, to such counsel’s
knowledge, any other encumbrance or adverse claim; to such counsel’s knowledge, no options, warrants or other rights to purchase, agreements or other obligations to issue or other rights to convert any obligation into shares of capital stock or
ownership interests in any of the Canadian Subsidiaries are outstanding;

 

	 	            (iii)       BioMarin Pharmaceutical Nova Scotia Company is duly qualified to do business in the Province of
Quebec;

 

	 	            (iv)      the execution, delivery and performance of this Agreement by the Company, including the consummation of the
transactions contemplated hereby and by the Final Memorandum, do not constitute, whether with the giving of notice or the passage of time or both, a Default Event pursuant to (A) any provision of the charter or

 
 24

	 	 
	 	bylaws or other organizational documents of the Canadian Subsidiaries; or (B) any Canadian federal or provincial law, regulation or rule; and

 

	 	            (v)       the execution, delivery and performance of this Agreement, the Registration Rights Agreement, the Indenture
and the Notes by the Company, including the consummation of the transactions contemplated hereby and thereby and by the Final Memorandum, do not constitute, whether with the giving of notice or the passage of time or both, a Default Event pursuant
to (A) any provision of any license, permit, franchise, authorization, indenture, mortgage, deed of trust, note, bank loan or credit agreement or other evidence of indebtedness, or any lease, contract or other agreement or instrument filed as an
exhibit to the Incorporated Documents and issued by any of the Canadian Subsidiaries or to which or any of the Canadian Subsidiaries is a party, or (B) any decree, judgment or order identified to such counsel by the Company as material to the
Canadian Subsidiaries, other than, in the case of clause (A) such Default Events as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

	 	          (c)      You shall have received at the time of purchase
and at the additional time of purchase, as the case may be, the opinion of Howrey Simon Arnold & White, LLP, such counsel to the Company, dated the time of purchase or the additional time of purchase, as the case may be, and in form reasonably
satisfactory to Dewey Ballantine LLP, counsel for the Initial Purchasers, stating that:

 

	 	            (i)      such counsel (A) represents the Company in certain matters relating to intellectual property, including
patents, (B) is generally familiar with the technology for which patents have been sought by or licensed to the Company for use in its business and the manner of such use, and (C) has read (I) the portions of the Final Memorandum, as they relate to
patents, discussed under the captions “Risk factors — If we are unable to protect our proprietary technology, we may not be able to compete as effectively” and “Risk factors — The United States Patent and Trademark Office
has issued three patents that relate to (alpha)-L-iduronidase. If we are not able to successfully challenge these patents, we may be prevented from producing Aldurazyme in the United States unless and until we obtain a license” and (II) the
portions of the 10-K, as they relate to patents, discussed under the captions “Description of Business — Patents and Proprietary Rights,” (I) and (II) being hereinafter referred to as the “Patent
Portions;”

 

	 	            (ii)      based upon such counsel’s investigation, the statements in the Final Memorandum and 10-K under the
Patent Portions (a) were true, correct and complete statements or summaries as of the date of the Final Memorandum and (b) are true, correct and complete 

 
 25

	 	 
	 	statements or summaries at the time of purchase, or the additional time of purchase, as the case may be;

 

	 	            (iii)    such counsel has reviewed the patents and patent applications filed in the U.S., and foreign counterparts thereto, that
are owned by the Company, and patents and patent applications filed in the U.S., and foreign counterparts thereto, that are licensed exclusively to the Company (the “Patents”); in such counsel’s opinion, the Patents owned by
the Company have been properly prepared and filed on behalf of the Company and are being diligently prosecuted by the Company; insofar as such counsel is aware, based upon its investigation, the Patents licensed to the Company have been properly
prepared and filed and have been or are being diligently prosecuted by the licensor; based upon such counsel’s investigation, except as disclosed in the Final Memorandum, no other entity or individual has any right or claim to any of the
Patents or inventions disclosed therein; in such counsel’s opinion, each of the Patents discloses patentable subject matter under 35 U.S.C. § 101; such counsel is unaware of any facts from which it has concluded that the Patents fail to
disclose patentable subject matter under the other provisions of Title 35;

 

	 	            (iv)    such counsel is not aware of pending or threatened legal, governmental or administrative agency proceedings relating to
Patents, except as described in the Final Memorandum;

 

	 	            (v)     according to the records of such counsel, the Company is the licensee of, or is listed in the records of the
appropriate Patent Office(s) as the owner of record of, the Patents listed on the attachment to the such counsel’s opinion; for inventions that are the subject of Patents owned by the Company, the Company has obtained an assignment of all
right, title and interest from all inventors that have been identified to such counsel and is the owner of all right, title and interest in such Patents;

 

	 	            (vi)    except as set forth in the Final Memorandum under the caption “Risk factors,” such counsel has not become
aware, after investigation, that the Company is infringing or otherwise violating any patents of others, nor has such counsel become aware, after investigation, of any patent rights of third parties that could reasonably be expected to affect
materially the ability of the Company to conduct its business as described in the Final Memorandum and 10-K (including commercialization of products under development of which such counsel is aware);

 

	 	            (vii)     to the knowledge of such counsel, after investigation, the Company owns or possesses the right to use its issued
patents and the issued patents licensed exclusively to the Company to exclude others from conducting the business now being proposed to be 

 
 26

	 	 
	 	conducted by the Company, as described in the Final Memorandum and 10-K and as encompassed by the claims of the such issued patents; such counsel expresses no business opinion as to the ability of the Company to
commercialize products; and

 

	 	            (viii)      such counsel has no reason to believe that the information in the Patent Portions, as of the date of the
Final Memorandum, contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or that, at the time of
purchase, or the additional time of purchase, as the case may be, the information in the Patent Portions contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

	 	          (d)      You shall have received at the time of purchase
and at the additional time of purchase, as the case may be, the opinion of Hyman, Phelps & McNamara, P.C., regulatory counsel for the Company, dated the time of purchase or the additional time of purchase, as the case may be, in form reasonably
satisfactory to the Initial Purchasers, stating that:

 

	 	            (i)      The statements of federal law or regulation, contained in (A) the 10-K, under the captions “Description
of Business — Overview,” “Description of Business — Recent Developments — FDA issues complete response letter,” “Description of Business — Unanimous FDA advisory committee recommendations, “Description of
Business — Aldurazyme,” “Description of Business — Neutralase,” “Description of Business — Aryplase,” “Description of Business — Other Product Development Programs,” “Description of
Business — Manufacturing,” “Description of Business — Government Regulation,” “Description of Business — Factors that may affect future results — — If we fail to obtain regulatory approval to commercially
manufacture or sell any of our future drug products, or if approval is delayed, we will be unable to generate revenue from the sale of our products, our potential for generating positive cash flow will be diminished and the capital necessary to fund
our operations will be increased,” “Description of Business — Factors that may affect future results — To obtain regulatory approval to market our products, preclinical studies and costly and lengthy clinical trials will be
required and the results of the studies and trials are highly uncertain,” “Description of Business — Factors that may affect future results — The fast track designation for our product candidates may not actually lead to a faster
review process and a delay in the review process or approval of our products will delay revenue from the sale of the products and will increase the capital necessary to fund these programs,” “Description of Business — Factors that may
affect future results — We will not be able to sell our products if we fail to comply with manufacturing regulations,” 

 
 27

	 	 
	 	“Description of Business — Factors that may affect future results — If we fail to obtain orphan drug exclusivity for some of our products, our competitors may sell products to treat the same conditions
and our revenue will be reduced,” “Description of Business — Factors that may affect future results — If we fail to obtain an adequate level of reimbursement for our drug products by third-party payers, the sale of our drugs
would be adversely affected or there may be no commercially viable markets for our products;” (B) the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2003, under the captions “Part I. Financial Information
— Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Overview,” “Part I. Financial Information —Item 2. Management’s Discussion and Analysis of Financial Condition and
Results of Operations — Factors that may affect future results — If we fail to obtain regulatory approval to commercially manufacture or sell any of our future drug products, or if approval is delayed, we will be unable to generate revenue
from the sale of our products, our potential for generating positive cash flow will be diminished and the capital necessary to fund our operations will be increased,” “Part I. Financial Information — Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of Operations — Factors that may affect future results — To obtain regulatory approval to market our products, preclinical studies and costly and lengthy clinical trials will be
required and the results of the studies and trials are highly uncertain,” “Part I. Financial Information —Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors that may
affect future results — The fast track designation for our product candidates may not actually lead to a faster review process and a delay in the review process or approval of our products will delay revenue from the sale of the products and
will increase the capital necessary to fund these programs,” “Part I. Financial Information — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors that may affect future
results — We will not be able to sell our products if we fail to comply with manufacturing regulations,” “Part I. Financial Information — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Factors that may affect future results — If we fail to obtain orphan drug exclusivity for some of our products, our competitors may sell products to treat the same conditions and our revenue will be reduced,” and
“Part I. Financial Information — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors that may affect future results — If we fail to obtain an adequate level of
reimbursement for our drug products by third-party payers, the sales of our drugs would be adversely affected or there may be no commercially viable markets for our products;” (C) the Final Memorandum, under the captions “Offering
memorandum summary — Business Overview,” “Offering memorandum summary — Recent Developments,” “Offering memorandum summary —

 
 28

	 	 
	 	Aldurazyme,” “Offering memorandum summary — Neutralase,” “Offering memorandum summary — Aryplase,” “Offering memorandum summary — Other product development programs,”
“Offering memorandum summary — Our Strategy,” “Risk factors—If we fail to obtain or maintain regulatory approval to commercially manufacture or sell our drug products, or if approval is delayed, we will be unable to generate
revenue from the sale of our products, our potential for generating positive cash flow will be diminished and the capital necessary to fund our operations will be increased,” “Risk factors—To obtain regulatory approval to market our
products, preclinical studies and costly and lengthy clinical trials will be required and the results of the studies and trials are highly uncertain,” “Risk factors—The fast track designation for our product candidates may not
actually lead to a faster review process and a delay in the review process or approval of our products will delay revenue from the sale of the products and will increase the capital necessary to fund these programs,” “Risk factors—We
will not be able to sell our products if we fail to comply with manufacturing regulations,” “Risk factors—If we fail to obtain or maintain orphan drug exclusivity for some of our products, our competitors may sell products to treat
the same conditions and our revenue will be reduced,” “Risk factors—If we fail to obtain an adequate level of reimbursement for our drug products by third-party payers, the sales of our drugs would be adversely affected or there may
be no commercially viable markets for our products;” (D) the Company’s Current Reports on Form 8-K incorporated by reference in the Final Memorandum; and (E) other references in the Final Memorandum, the Form 10-Q for the period ending
March 31, 2003, the Company’s Current Reports on Form 8-K incorporated by reference in the Final Memorandum and the 10-K to U.S. Food and Drug Administration regulation of pharmaceutical products, (A), (B), (C), (D) and (E) being collectively
referred to herein as the “Regulatory Portion,” are, in all material respects, correct and accurate statements or summaries of applicable federal law and regulation, subject to the qualifications set forth therein,

 

	 	            (ii)      nothing has come to such counsel’s attention which has caused such counsel to believe that the
information included or incorporated by reference in the Regulatory Portion of the Final Memorandum, as of its date and at the time of purchase, or the additional time of purchase, as the case may be, or the 10-K, as of the date it was filed,
contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading,
and

 

	 	            (iii)      to the best of such counsel’s knowledge, the Company’s business, as currently conducted and solely
as described in the Final Memorandum and 10-K does not violate the Federal Food, Drug and Cosmetic Act, the Public Health Service Act or any FDA rule or 

 
 29

	 	 
	 	regulation, and, to the best of such counsel’s knowledge, there are no FDA judicial or administrative proceedings pending or threatened against the Company.

 

	 	          (e)       You shall have received at the time of purchase and at the additional time of purchase, as the case may be, the
opinion of Dewey Ballantine LLP, counsel for the Initial Purchasers, dated the time of purchase or the additional time of purchase, as the case may be, with respect to the issuance and sale of the Notes by the Company, the Final Memorandum (together
with any supplement thereto) and other related matters as the Initial Purchasers may require.

 

	 	          (f)       You shall have received from KPMG letters dated, respectively, the date of this Agreement and the time of purchase and
additional time of purchase, as the case may be, and addressed to the Initial Purchasers in the forms heretofore approved Dewey Ballantine LLP, counsel for the Initial Purchasers.

 

	 	          (g)       No amendment or supplement to either the Preliminary Memorandum or the Final Memorandum, or any document which upon
filing with the Commission would be incorporated by reference in either Memorandum, shall at any time have been made or filed to which you have objected in writing;

 

	 	          (h)      At the time of purchase or the additional time of purchase, as the case may be, the Final Memorandum shall not contain an
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

	 	          (i)      Between the time of execution of this Agreement and the time of purchase or the additional time of purchase, as the case
may be, (i) no material adverse change or any development reasonably likely to result in a prospective material adverse change in the business, properties, financial condition or results of operations of the Company and the Subsidiaries taken as a
whole shall occur or become known and (ii) no transaction which is material and adverse to the Company shall have been entered into by the Company or any of the Subsidiaries;

 

	 	          (j)      The Company will, at the time of purchase and, if applicable, at the additional time of purchase, deliver to you a
certificate signed by two of the Company’s executive officers to the effect that the representations and warranties of the Company set forth in this Agreement are true and correct as of each such date, that the Company has performed such of its
obligations under this Agreement as are to be performed at or before the time of purchase and at or before the additional time of purchase, as the case may be, and the conditions set forth in paragraphs (h) and (i) of this Section 7 have been
met;

 
 30

	 	          (k)      You shall have received a certificate of the Chief Financial Officer and Principal Financial and Accounting Officer of the
Company, dated the date of the time of purchase or the additional time of purchase, as applicable, in the form attached as Exhibit C hereto, respecting the Company’s compliance, both prior to and after giving effect to the transactions
contemplated hereby, with certain agreements and instruments respecting outstanding indebtedness of the Company and the Subsidiaries;

 

	 	          (l)      You shall have received copies, duly executed by the Company and the other parties thereto (other than the Initial
Purchasers, if applicable), of the Registration Rights Agreement and the Indenture;

 

	 	          (m)      Each executive officer and director of the Company shall have entered into Lock-Up Agreements in the form attached as
Exhibit B hereto on or prior to the date hereof, and each such Lock-Up Agreement shall have been delivered to you and shall be in full force and effect at the time of purchase and the additional time of purchase, as the case may
be;

 

	 	          (n)      The Company shall have furnished to you such other documents and certificates as to the accuracy and completeness of any
statement in the Final Memorandum as of the time of purchase and the additional time of purchase, as the case may be, as you may reasonably request;

 

	 	          (o)      The Notes shall have been designated for trading on PORTAL, subject only to notice of issuance at or prior to the time of
purchase; and

 

	 	          (p)      Between the time of execution of this Agreement and the time of purchase or additional time of purchase, as the case may
be, there shall not have occurred any downgrading, nor shall any notice have been given of (i) any intended or potential downgrading or (ii) any watch, review or possible change that does not indicate an affirmation or improvement in the rating
accorded any securities of or guaranteed by the Company or any Subsidiary by any “nationally recognized statistical rating organization,” as that term is defined in Rule 436(g)(2) under the Act.

 

	 	          8.         Termination: The obligations of the several Initial Purchasers hereunder shall be subject to
termination in the absolute discretion of you or any group of Initial Purchasers which has agreed to purchase in the aggregate at least 50% of the Firm Notes, (i) if, since the time of execution of this Agreement or the respective dates as of which
information is given in the Final Memorandum, there has been any material adverse change, financial or otherwise (other than as specifically described in the Final Memorandum), in the operations, business, condition or prospects of the Company and
the Subsidiaries taken as a whole, which would, in your judgment or in the judgment of such group of Initial Purchasers, make it impracticable to market the Notes or (ii) if, at any time prior to the time of purchase or, with respect to the purchase
of any Additional Notes, the additional time of purchase, as the case may be, trading in securities on the New York Stock Exchange, the American Stock Exchange or NASDAQ shall

 
 31

  have been suspended or limitations or minimum prices shall have been established on the New York Stock Exchange, the American Stock Exchange or NASDAQ, or if a banking moratorium shall
have been declared either by the United States or New York State authorities, or if the United States shall have declared war in accordance with its constitutional processes or there shall have occurred any material outbreak or escalation of
hostilities or other national or international calamity or crisis of such magnitude in its effect on the financial markets of the United States as, in your judgment or in the judgment of such group of Initial Purchasers, to make it impracticable to
market the Notes.
          If you or any group of Initial Purchasers elects to terminate this Agreement as provided in this Section 8, the Company and each
other Initial Purchaser shall be notified promptly by letter or telegram from such terminating Initial Purchaser.
          If the sale to the Initial Purchasers
of the Notes, as contemplated by this Agreement, is not carried out by the Initial Purchasers for any reason permitted under this Agreement or if such sale is not carried out because the Company shall be unable to comply with any of the terms of
this Agreement, the Company shall not be under any obligation or liability under this Agreement (except to the extent provided in Sections 5(k), 6 and 9 hereof), and the Initial Purchasers shall be under no obligation or liability to the
Company under this Agreement (except to the extent provided in Section 9 hereof) or to one another hereunder.
          9.     
Indemnity by the Company and the Initial Purchasers:
          (a)     The Company agrees to indemnify, defend and hold harmless
each Initial Purchaser, its directors and officers, and any person who controls any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, an “Initial Purchaser Indemnified Party”),
from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Initial Purchaser Indemnified Party may incur under the Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any Memorandum, as amended or supplemented, if applicable, or arises out of or is based upon any omission or
alleged omission to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, except insofar as any such loss, damage, expense, liability or claim arises
out of or is based upon any untrue statement or omission or alleged untrue statement or omission of a material fact contained in or omitted from and in conformity with information furnished in writing by or on behalf of any Initial Purchaser to the
Company expressly for use therein; provided however, that this indemnity agreement with respect to any Preliminary Memorandum or amended Preliminary Memorandum shall not inure to the benefit of any Initial Purchaser from whom the
person asserting any such loss, damage, expense, liability or claim purchased the Notes which is the subject thereof if the Final Memorandum corrected any such alleged untrue statement or omission and if such Initial Purchaser failed to send or give
a copy of the Final Memorandum to such person at or prior to the written confirmation of the sale of such Shares to such person, unless the failure is the result of noncompliance by the Company with Section 5(c) hereof.
 32

           (b)     Each Initial Purchaser severally agrees to indemnify, defend and hold harmless the Company, its
directors and officers and any person who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a “Company Indemnified Party”) from and against any loss, damage, expense, liability
or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any
untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such Initial Purchaser to the Company expressly for use in any Memorandum or arises out of or is based upon any omission
or alleged omission to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in connection with such information.
          (c)     If any action, suit or proceeding (each, a “Proceeding”) is brought against any person in respect of which indemnity may
be sought pursuant to either subsection (a) or (b) of this Section 9, such person (the “Indemnified Party”) shall promptly notify the person against whom such indemnity may be sought (the “Indemnifying Party”)
in writing of the institution of such Proceeding and such Indemnifying Party shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to such Indemnified Party and payment of all fees and expenses;
provided, however, that the omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise, except to the extent materially prejudiced
by such omission. Such Indemnified Party shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless the employment of such counsel shall have
been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of
notice thereof or such Indemnified Party shall have reasonably concluded upon written advice of counsel that there may be defenses available to it that are different from, additional to, or in conflict with those available to such Indemnifying Party
(in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of such Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but
the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that
such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are
parties to such Proceeding). An Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees
to indemnify and hold harmless an Indemnified Party from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to
reimburse such
 33

  Indemnified Party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any
settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than 60 business days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have
reimbursed such Indemnified Party in accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days’ prior notice of its intention to settle. An
Indemnifying Party shall not, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and does not include an admission of
fault, culpability or a failure to act, by or on behalf of such Indemnified Party.
          (d)     If the indemnification provided for
in this Section 9 is unavailable to an Indemnified Party under subsections (a) and (b) of this Section 9 in respect of any losses, damages, expenses, liabilities or claims referred to therein, then each applicable Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, damages, expenses, liabilities or claims (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Initial Purchasers on the other hand from the offering of the Notes or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Initial Purchasers on the other in connection with the statements or omissions which resulted
in such losses, damages, expenses, liabilities or claims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Initial Purchasers on the other shall be deemed to be in the same
proportion as the total proceeds from the offering (net of Initial Purchasers’ discounts and commissions but before deducting expenses) received by the Company bear to the discounts and commissions received by the Initial Purchasers. The
relative fault of the Company on the one hand and of the Initial Purchasers on the other shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged
omission relates to information supplied by the Company or by the Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable
by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or
defending any Proceeding.
          (e)     The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation or by any other method of allocation which does not take account of the
 34

  equitable considerations referred to in subsection (d) above. Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to contribute any amount in
excess of the amount by which the total price at which the Notes resold by it in the initial placement of such Notes were offered to investors exceeds the amount of any damages which such Initial Purchaser has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 9 are several in proportion to the respective principal amount of Notes they have purchased hereunder, and not
joint. The remedies provided for in this Section 9 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.
          (f)     The indemnity and contribution agreements contained in this Section 9 and the covenants, warranties and representations of the Company
and the Initial Purchasers contained in this Agreement shall remain in full force and effect (regardless, with respect to representations and warranties of the Company, of any investigation made by on behalf of any Initial Purchaser, its directors
or officers or any person who controls any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, or by or on behalf of the Company, its directors and officers or any person who controls the Company within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act) and shall survive any termination of this Agreement or the issuance and delivery of the Notes. The Company and the Initial Purchasers agree promptly to notify the other of the
commencement of any litigation or proceeding against it and, in the case of the Company, against any of the Company’s officers and directors, in connection with the issuance and sale of the Notes, or in connection with any
Memorandum.
          10.     Effectiveness; Increase in Initial Purchasers’ Commitments:  This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.
          Subject to Sections 7 and 7(p), if, at the time of purchase, or the
additional time of purchase, as the case may be, any Initial Purchaser shall default in its obligation to take up and pay for the Notes to be purchased by it at such time hereunder (otherwise than for a reason sufficient to justify the termination
of this Agreement under the provisions of Section 7(p) hereof) and if the aggregate principal amount of Notes which all Initial Purchasers so defaulting shall have agreed but failed to take up and pay for at such time does not exceed ten
percent (10%) of the total aggregate principal amount of Notes to be purchased at such time, the non-defaulting Initial Purchasers shall take up and pay for (in addition to the aggregate number of Notes they are obligated to purchase at such time
pursuant to Section 1 hereof) the aggregate principal amount of Notes agreed to be purchased by all such defaulting Initial Purchasers at such time, as hereinafter provided. Such Notes shall be taken up and paid for by such non-defaulting
Initial Purchaser or Initial Purchasers in such amount or amounts as you may designate with the consent of each Initial Purchaser so designated or, in the event no such designation is 
 35

  made, such Notes shall be taken up and paid for by all non-defaulting Initial Purchasers pro rata in proportion to the aggregate principal amount of Firm Notes set opposite the names of
such non-defaulting Initial Purchasers in Schedule A.
          Without relieving any defaulting Initial Purchaser from its obligations here-under, the Company
agrees with the non-defaulting Initial Purchasers that it will not sell any Firm Notes hereunder unless all of the Firm Notes are purchased by the Initial Purchasers (or by substituted Initial Purchasers selected by you with the approval of the
Company or selected by the Company with your approval).
          If a new Initial Purchaser or Initial Purchasers are substituted by the Initial Purchasers or by
the Company for a defaulting Initial Purchaser or Initial Purchasers in accordance with the foregoing provision, the Company or you shall have the right to postpone the time of purchase for a period not exceeding five (5) business days in order that
any necessary changes in the Final Memorandum and other documents may be effected.
          The term “Initial Purchasers” as used in this Agreement
shall refer to and include any Initial Purchaser substituted under this Section 10 with like effect as if such substituted Initial Purchaser had originally been named in Schedule A.
          If, at the time of purchase, the aggregate principal amount of Firm Notes which the defaulting Initial Purchaser or Initial Purchasers agreed to purchase exceeds ten
percent (10%) of the total principal amount of Firm Notes which all Initial Purchasers agreed to purchase hereunder, and if neither the non-defaulting Initial Purchasers nor the Company shall make arrangements within the five (5) business day period
stated above for the purchase of all the Firm Notes which the defaulting Initial Purchaser or Initial Purchasers agreed to purchase hereunder, this Agreement shall be terminated without further act or deed and without any liability on the part of
the Company to any non-defaulting Initial Purchaser and without any liability on the part of any non-defaulting Initial Purchaser to the Company. If, at the additional time of purchase, the aggregate principal amount of Additional Notes which the
defaulting Initial Purchaser or Initial Purchasers agreed to purchase exceeds ten (10%) of the total principal amount of Additional Notes which all Initial Purchasers agreed to purchase hereunder, the non-defaulting Initial Purchasers shall have the
option to (a) terminate their obligation hereunder to purchase the Additional Notes or (b) purchase not less than the principal amount of Additional Notes that such non-defaulting Initial Purchasers would have been obligated to purchase in the
absence of such default. Nothing in this paragraph, and no action taken hereunder, shall relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement.
          11.     Information Furnished by the Initial Purchasers.  The statements set forth in the penultimate paragraph of the text under
the caption “Plan of Distribution” in the Final Memorandum, insofar as such statements relate to stabilization, constitute the only information furnished by or on behalf of the Initial Purchasers as such information is referred to in
Sections 3 and 9 hereof.
 36

           12.     Tax Disclosure.  Notwithstanding any other provision of this Agreement, from the
commencement of discussions with respect to the transactions contemplated hereby, the Company (and each employee, representative or other agent of the Company) may disclose to any and all persons, without limitation of any kind, the tax treatment
and tax structure (as such terms are used in Sections 6011, 6111 and 6112 of the U.S. Code and the Treasury Regulations promulgated thereunder) of the transactions contemplated by this Agreement and all materials of any kind (including opinions or
other tax analyses) that are provided relating to such tax treatment and tax structure.
          13.     Notices:  Except as otherwise herein provided, all statements, requests, notices and agreements shall be in writing or by
facsimile and, if to the Initial Purchasers, shall be sufficient in all respects if delivered or sent to c/o UBS Securities LLC, 299 Park Avenue, New York, New York 10171, Attention: Syndicate Department, facsimile no. (713) [____], with a copy to
(for informational purposes only): Attention: Legal Department, facsimile no. (212) 821-4042 and 677 Washington Boulevard, Stamford, Connecticut 06901, Attention: Syndicate Department, facsimile no. (203) [____], with a copy to (for informational
purposes only): Attention: Legal Department, facsimile no. (203) 719-0683, and, if to the Company, shall be sufficient in all respects if delivered or sent to the Company at the offices of the Company at 371 Bel Marin Keys Boulevard, Suite 210,
Novato, California, 94949, Attention: Louis Drapeau, Chief Financial Officer.
          14.     Governing Law and
Construction:  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. THE SECTION HEADINGS IN THIS AGREEMENT HAVE BEEN INSERTED AS A
MATTER OF CONVENIENCE OF REFERENCE AND ARE NOT A PART OF THIS AGREEMENT.
          15.     Parties at Interest:  The
Agreement herein set forth has been and is made solely for the benefit of the Initial Purchasers and the Company and the controlling persons, directors and officers referred to in Section 9 hereof, and their respective successors, assigns,
executors and administrators. No other person, partnership, association or corporation (including a purchaser, as such purchaser, from the Initial Purchasers) shall acquire or have any right under or by virtue of this Agreement.
          16.     Counterparts:  This Agreement may be signed by the parties in counterparts which together shall constitute one and the
same agreement among the parties. Delivery of an executed counterpart by facsimile shall be effective as delivery of a manually executed counterpart thereof.
          17.     Successors and Assigns:  This Agreement shall be binding upon the Initial Purchasers and the Company and their successors
and assigns and any successor or assign of any substantial portion of the Company’s and any of the Initial Purchasers’ respective businesses and/or assets.
 37

           18.     Submission to Jurisdiction:  Except as set forth below, no Proceeding may be
commenced, prosecuted or continued in any court other than the courts of the State of New York located in the City and County of New York or in the United States District Court for the Southern District of New York, which courts shall have
jurisdiction over the adjudication of such matters, and the Company hereby consents to the jurisdiction of such courts and personal service with respect thereto. The Company hereby consents to personal jurisdiction, service and venue in any court in
which any Proceeding arising out of or in any way relating to this Agreement is brought by any third party against the Initial Purchasers. THE COMPANY HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED UPON CONTRACT, TORT OR
OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING TO THIS AGREEMENT. The Company agrees that a final judgment in any such Proceeding brought in any such court shall be conclusive and binding upon the Company and may be enforced in any other courts in
the jurisdiction of which the Company is or may be subject, by suit upon such judgment.
 [The remainder of this page intentionally left blank; signature page follows]
 38

           If the foregoing correctly sets forth the understanding between the Company and the Initial Purchasers, please so indicate in the
space provided below for the purpose, whereupon this letter and your acceptance shall constitute a binding agreement between the Company and the Initial Purchasers.

	 	 	 	 
	 	 	Very truly yours,
	 	 	 
	 	 	BIOMARIN PHARMACEUTICAL INC.
	 	 	 
	 	 	 
	 	 	By:	FREDRIC D. PRICE
				

	 	 	 	Name: Fredric D. Price
	 	 	 	Title: Chairman and Chief Executive Officer
	 	 	 
	Accepted and agreed to as of the date first above written on behalf of itself and the other Initial Purchasers named in Schedule A hereto:
	 	 	 
	UBS SECURITIES LLC
	 	 	 
	 	 	 
	By:	/s/ SAGE KELLY
	 	

	 	Name: Sage Kelly
	 	Title: Executive Director
	 	 	 
	By:	/s/ ROSS DEDEYN
	 	
	
	 	Name: Ross DeDeyn	
	 	Title: Associate Director	

  SCHEDULE A

	Initial Purchasers
		Principal Amount
of Firm Notes
	
	UBS SECURITIES LLC	 	 	$	 100,000,000	 
	CIBC WORLD MARKETS CORP	 	 	 	25,000,000	 
		
	
	     Total	 	 	$	 125,000,000	 
		
	

  EXHIBIT A

	Name
		Jurisdiction of Incorporation
	
	 	 	 	 
	Glyko, Inc.	 	Delaware	 
	Glyko, Inc.	 	California	 
	Glyko Biomedical Ltd.	 	British Columbia	 
	BioMarin Pharmaceutical (Canada) Inc.	 	Canada	 
	BioMarin Acquisition (Del.) Inc.	 	Delaware	 
	BioMarin Acquisition (Nova Scotia) Company	 	Nova Scotia, Canada	 
	BioMarin Delivery Canada Inc.	 	Canada	 
	BioMarin Enzymes Inc.	 	Delaware	 
	BioMarin Genetics, Inc.	 	Delaware	 
	BioMarin/Genzyme LLC	 	Delaware	 
	BioMarin Holdings (Del.) Inc.	 	Delaware	 
	BioMarin Holdings (Nova Scotia) Company	 	Nova Scotia, Canada	 
	BioMarin Pharmaceutical Nova Scotia Company	 	Nova Scotia, Canada	 
	BioMarin Pharmaceutical Delivery Nova Scotia Company	 	Nova Scotia, Canada	 

  EXHIBIT B
 BIOMARIN PHARMACEUTICAL INC.
 June __,
2003
 UBS Securities LLC 
 299 Park Avenue 
 New York, New York 10171 
 Ladies and Gentlemen:
          This Lock-Up Letter Agreement is being delivered to you in connection with the proposed Purchase Agreement (the “Purchase Agreement”) to be entered into by and
among BioMarin Pharmaceutical Inc. (the “Company”) and you, as initial purchaser, with respect to the offering without registration under the Securities Act of 1933, as amended, in reliance on Rule 144A thereto (the “Offering”),
of Convertible Subordinated Notes due 2008 (the “Notes”).
          In order to induce you to enter into the Purchase Agreement, the undersigned agrees
that for a period of 90 days after the date of the final offering memorandum relating to the Offering, the undersigned will not, without the prior written consent of UBS Securities LLC, (i) sell, offer to sell, contract to sell, hypothecate, pledge,
grant any option to purchase or otherwise dispose of, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder with respect to, any Common Stock of the Company (the “Common Stock”) or any securities convertible into or exercisable or exchangeable for Common Stock, except for the
exercise of any stock option by the undersigned, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock, whether any such transaction is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, or (iii) publicly announce an intention to effect any transaction specified in
clause (i) or (ii). The foregoing sentence shall not apply to (a) the sale of the Notes and Common Stock issuable upon conversion of the Notes pursuant to the Purchase Agreement, (b) bona fide gifts, provided the recipient or recipients thereof
agree in writing to be bound by the terms of this Lock-Up Letter Agreement, (c) dispositions to any trust for the direct or indirect benefit of the undersigned and/or the immediate family of the undersigned, provided that such trust agrees in
writing to be bound by the terms of this Lock-Up Letter Agreement, or (d) sales of Common Stock pursuant to the terms of planned sale arrangements 

  implemented pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, provided that undersigned entered into such plan prior to June 10, 2003. For purposes of this paragraph,
“immediate family” shall mean the undersigned and the spouse, lineal descendant, father, mother, brother or sister of the undersigned.
          In
addition, the undersigned hereby waives any rights the undersigned may have to require registration of Common Stock in connection with the filing of a registration statement relating to the Offering. The undersigned further agrees that, for a period
of 90 days after the date of the final offering memorandum relating to the Offering, the undersigned will not, without the prior written consent of UBS Securities LLC, make any demand for, or exercise any right with respect to, the registration of
Common Stock of the Company or any securities convertible into or exercisable or exchangeable for Common Stock.
          This Lock-Up Letter Agreement shall be
terminated and the undersigned shall be released from its obligations hereunder (i) upon the date the Company notifies you in writing that it does not intend to proceed with the Offering, (ii) upon the date the Purchase Agreement is terminated, for
any reason, prior to the time of purchase (as defined in the Purchase Agreement) or (iii) on July 31, 2003 if the Purchase Agreement is not signed before that date.

	 	Yours very truly,
	 	 
	 	

	 	Name:

 B-2

  EXHIBIT C
 CHIEF FINANCIAL OFFICERS’ CERTIFICATE
          I, Louis Drapeau, Vice President, Finance, Chief Financial Officer and Principal Financial and Accounting Officer of BioMarin Pharmaceutical Inc., a Delaware corporation
(the “Company”), hereby certify that:
          (i)      I am familiar with the terms of (a) the Master Security
Agreement dated December 15, 2001, between General Electric Capital Corporation and the Company, as amended December 15, 2001 and December 31, 2001 and the promissory notes entered into pursuant to such Master Security Agreement and (b) any and all
other agreements relating to the indebtedness of the Company and the Subsidiaries outstanding on the date hereof (with regard to clauses (a) and (b) above, each as may be amended as of the date hereof, collectively, the “Debt
Agreements”). For the purpose of this certificate, I have reviewed in particular the covenants contained in the Debt Agreements and the events of default provided for by the Debt Agreements.
          (ii)      On the date hereof, there exists no event of default or event which, with notice or lapse of time or both, would constitute an event of
default under the Debt Agreements.
          (iii)      Neither the issuance by the Company of up to $150,000,000 aggregate principal
amount of the Notes pursuant to the Purchase Agreement (assuming exercise in full of the Initial Purchasers’ option to purchase additional Notes), nor the issuance by the Company of Common Stock upon conversion of the Notes will result in an
event of default or an event which, with notice or lapse of time or both, would constitute an event of default under the Debt Agreements.
          Capitalized
terms used herein without definition shall have the respective meanings ascribed to them in the Purchase Agreement.
 C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]