Document:

License agreement, dated November 3, 2004 between Nuvelo, Inc. and Amgen, Inc.

 EXHIBIT 10.49 
  
 LICENSE AGREEMENT 
  
 BY AND BETWEEN 
  
 AMGEN INC. 
  
 AND 
  
 NUVELO, INC. 
  

					
	 Amgen Contract #200200784
	 	1	 	 

  
 LICENSE AGREEMENT

  
 THIS LICENSE
AGREEMENT (the “License Agreement”) is made effective as of November 3, 2004 (the “Effective Date”) by and between AMGEN INC., a Delaware corporation having its principal place of business
at One Amgen Center Drive, Thousand Oaks, California 91320-1799 (“Amgen”) and NUVELO, INC., a Nevada corporation having its principal place of business at 670 Almanor Avenue, Sunnyvale, California 94085-1710 and formerly known as
Hyseq, Inc. (“Nuvelo”). Amgen and Nuvelo are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 
  
 RECITALS 
  
 WHEREAS, Amgen and Nuvelo have been collaborating in the joint development and commercialization of a protein known
as Alfimeprase (and other variants of Alfimeprase) under the terms and conditions of that certain Collaboration Agreement between the Parties, dated January 8, 2002 (“Collaboration Agreement”); 
  
 WHEREAS, pursuant to Article 15 of the
Collaboration Agreement, Amgen has elected to exercise its right to convert its right to jointly develop and commercialize Alfimeprase (and other variants of Alfimeprase) into the grant to Nuvelo of an exclusive license under certain Amgen rights to
Develop, manufacture and Commercialize Alfimeprase (and other variants of Alfimeprase); 
  
 WHEREAS, Nuvelo wishes, to exclusively license such Amgen rights from Amgen in connection with the Development, manufacture and Commercialization of the Licensed Product(s) (as
hereinafter defined), on the terms and conditions herein; 
  
 NOW THEREFORE, based on the foregoing premises and the mutual covenants and obligations set forth below, the Parties agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 Capitalized terms used but not otherwise defined herein have the meanings provided in Exhibit A hereto. 
  
 ARTICLE 2 
 GRANT OF LICENSES AND
OTHER RIGHTS 
  
 2.1 Patent Licenses. Amgen
hereby grants to Nuvelo an exclusive license (even as to Amgen) under Amgen Technology to make, have made, use, sell, lease, offer to sell or lease, have sold, import, export or otherwise exploit, transfer physical possession of and transfer title
or interest in and to Licensed Products in the Territory. 
  
 2.2 Trademark; Copyright Licenses. 
  
 (a)
Amgen hereby grants to Nuvelo an exclusive royalty-free license, with the right to grant sublicenses (subject to Nuvelo’s compliance with Section 2.3), under Amgen’s entire right, 

  

					
	 Amgen Contract #200200784
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title and interest in and to the Product Trademarks, to use and display the Product Trademarks in connection with Licensed Products in the Territory. For the
avoidance of doubt, Nuvelo shall have the right to select for and use and display with Licensed Products such Trademarks as it desires. 
  
 (b) Amgen hereby grants to Nuvelo an exclusive royalty-free license under Amgen’s entire right, title and interest in any copyrights in and to
Promotional Materials, with the right to grant sublicenses subject to Nuvelo’s compliance with Section 2.3 of this License Agreement), to reproduce, distribute copies of, prepare derivative works of and publicly perform and display such
Promotional Materials in connection with Licensed Products in the Territory solely in compliance with the terms and conditions of this License Agreement. 
  
 (c) Other than with respect to the rights and licenses granted to Joint Know-How under this License Agreement, each Party shall have the unrestricted
royalty-free, worldwide right to make, have made, use, sell, lease, offer to sell or lease, have sold, import, export or otherwise exploit, or transfer physical possession of or title in, Joint Know-How, without accounting. 
  
 2.3 Sublicensing. 
  
 (a) Nuvelo will have the sole right to determine whether to sublicense any of
its rights under Section 2.1 or 2.2. Any such sublicense shall require the Sublicensee to comply with the obligations of Nuvelo as contained herein (specifically including without limitation, obligations under Section 6.6, Article 7, Section 11.2
and Section 14.15), and including an obligation of the Sublicensee to account for and report its sales of Licensed Products on the same basis as if such sales were Net Sales by Nuvelo. Any such sublicense shall provide for the termination of the
sublicense, or the conversion to a license directly between such Sublicensee and Amgen, at the option of Amgen, upon termination of this License Agreement pursuant to Article 12. Nuvelo shall forward to Amgen a copy of each fully executed sublicense
agreement within sixty (60) days of the execution of such agreement. 
  
 (b) Notwithstanding the sublicensing of all or part of Nuvelo’s rights and obligations hereunder Nuvelo shall remain responsible for the full and complete performance of all of Nuvelo’s obligations and duties under this License
Agreement. For the avoidance of doubt, Nuvelo shall forward to Amgen and acknowledges that Amgen shall be entitled to receive Royalties on Net Sales of Licensed Product(s) sold by Sublicensees hereunder and that Nuvelo shall be responsible to Amgen
for paying Royalties due on Net Sales of Product(s) sold by Sublicensees. 
  
 2.4 Assignment to Nuvelo. Pursuant to Section 16.9(c)(ii) of the Collaboration Agreement, Amgen shall have transferred or is in the process of transferring to Nuvelo all right, title and interest in all
Regulatory Filings and Regulatory Approvals owned in each case by Amgen and shall have delivered or is in the process of delivering to Nuvelo all correspondence between Amgen and Regulatory Authorities relating to all Regulatory Filings and
Regulatory Approvals. At Nuvelo’s request and expense, within seven (7) days after such request Amgen will provide Nuvelo with access to any pre-clinical and clinical information (reasonably necessary to the continued Development, manufacturing
and Commercialization of a 

  

					
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Collaboration Product), and Amgen will assist Nuvelo in responding to any request or inquiry regarding such information by a Regulatory Authority.

  
 2.5 Manufacturing License to Nuvelo. Pursuant to
Section 4.1, Amgen shall grant to Nuvelo an exclusive license, with a limited right to sublicense (to Third Party manufacturers pursuant to Section 4.2), to make, have made and use Amgen Material and Manufacturing Information solely for the purposes
set forth in Section 3.1 below. 
  
 2.6 Retained Rights.
With respect to the licenses granted under this Article 2, Amgen expressly reserves for itself and its Affiliates a non-transferable, non-sublicensable right to make, have made and use (but not to transfer, sell, have sold, offer to sell or
lease, import, export or otherwise exploit or transfer possession of, title to or interest in) Licensed Products under Amgen Technology and Amgen Material and Manufacturing Information which are solely for internal research purposes unrelated to
Licensed Products. For the avoidance of doubt, Amgen shall further retain all rights in Amgen Technology and the Amgen Material and Manufacturing Information not expressly licensed hereunder, including the right to make, have made, use, sell, lease,
offer to sell or lease, have sold, import, export or otherwise exploit, transfer physical possession of and transfer title or interest in and to products, other than Licensed Products, for any purpose in the Territory. 
  
 ARTICLE 3 
 DEVELOPMENT AND COMMERCIALIZATION 
  
 3.1 Development and Commercialization. At its discretion Nuvelo shall have sole and full control, authority and responsibility for conducting, funding and pursuing all aspects of Development and
Commercialization of each said Licensed Product in the Territory. 
  
 3.2 Regulatory Filings and Regulatory Approvals. With respect to each Licensed Product, at its discretion Nuvelo will prepare, file and own all right, title and interest in Regulatory Filings and
Regulatory Approvals relating to each said Licensed Product in the Territory. 
  
 3.3 Annual Reports. Nuvelo will provide Amgen with detailed written annual reports concerning their efforts regarding Development and Commercialization (pursuant to Article 3) and regarding manufacturing
(pursuant to Article 4) of the Licensed Products. At Amgen’s request, Nuvelo shall promptly discuss such annual report and any progress regarding Development, manufacturing and Commercialization with Amgen. 
  
 ARTICLE 4 
 MANUFACTURE AND SUPPLY 
  
 4.1 Manufacturing Right. Nuvelo shall be responsible for manufacturing and supplying Licensed Products for Development and Commercialization in the Territory and for making all decisions with respect thereto in
its sole discretion, including without limitation, decisions relating to process development work to support quality assurance, improving manufacturing/cost efficiency and commercial scale-up manufacturing. For the avoidance of doubt, Nuvelo shall
have final decision making authority to fulfill its regulatory responsibilities 
  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

					
	 Amgen Contract #200200784
	 	4	 	 

 over all steps of the manufacturing process (including bulk, finish and fill, labeling and packaging, lot release and
management of subcontractors). 
  
 4.2 Transfer of
Manufacturing Responsibilities. Transfer of manufacturing responsibilities from Amgen to Nuvelo or to a Third Party manufacturer approved by Amgen pursuant to Section 6.7 of the Collaboration Agreement will take place according to Section
16.9(c) of the Collaboration Agreement and notwithstanding any other provision of the Collaboration Agreement, the parties will work together to establish a manufacturing transition plan within the scope and bounds set forth in the outline attached
to this License Agreement as Exhibit D. 
  
 4.3 Payment for
Transfer Expenses. Within ten (10) days after the Effective Date Nuvelo shall pay to Amgen the amount of $373,750 (the “Transfer Deposit”), as a deposit against the 50% share of costs Amgen will incur (based on an FTE rate
of    [*]    in transferring manufacturing responsibilities from Amgen to a Third Party manufacturer of Nuvelo’s choosing, for which Nuvelo will be responsible. Within thirty (30) days after the
completion of Amgen’s tasks designated in the manufacturing plan the Parties shall meet and reconcile the charges recorded by Amgen in transferring manufacturing responsibilities with the Transfer Deposit. Within thirty (30) days after such
reconciliation, Amgen shall pay to Nuvelo any amount by which the Transfer Deposit exceeded the 50% share of Amgen’s costs in transferring manufacturing responsibilities or Nuvelo shall pay to Amgen the amount by which the 50% share of costs in
transferring manufacturing responsibilities exceeds the Transfer Deposit. Pursuant to the terms of Section 8.3(f) of the Collaboration Agreement, the Parties will meet to reconcile post-third Calendar Quarter charges to the Operating Profit or Loss
that were incurred prior to the Effective Date of this Opt-Out Agreement according to the terms of such Section. Failure by Nuvelo to make any such payment(s) described under this Section 4.3 when due shall be deemed a material breach of
Nuvelo’s obligations under this License Agreement. 
  
 ARTICLE 5 
 CONSIDERATION 
  
 5.1 Clinical Milestones. 
  
 (a) Within thirty (30) days following the first achievement or occurrence with the first Licensed Product(s) of each of the following milestone events by
performance of Nuvelo or an Affiliate or Sublicensee of Nuvelo (“Milestone Event(s)”), Nuvelo shall pay to
Amgen the corresponding one-time, non-creditable, non-refundable milestone payments set forth herein (“Milestone Payment(s)”): 
  

					
	Milestone Event

	  	 Milestone Payment

			
	(i)	 	Administration of a Licensed Product to the first patient in a Pivotal Trial	  	$5,000,000.00
			
	(ii)	 	Upon the first BLA filing for a Licensed Product in the United States, EU or Japan	  	[ * ]
			
	(iii)	 	Upon the first BLA approval for a Licensed Product in the United States	  	[ * ]
			
	(iv)	 	Upon the first BLA approval for a Licensed Product in the EU	  	[ * ]
			
	(v)	 	Upon the first BLA approval for a Licensed Product in Japan	  	[ * ]
	 	 	 	  	

	 	 	Total	  	$40,000,000.00

  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 5 

 For the purposes of this Section 5.1(a) of the License Agreement, the first Milestone Event shall be deemed to have
occurred upon the earlier of (I) the administration of a Licensed Product to the first patient in a clinical trial after the Effective Date or (II)     [ * ]            
provided, however that in the event that Nuvelo has not commenced a clinical trial prior to     [ * ]         directly due to a decision by FDA that the Licensed Product produced by Amgen
under Process B is not bio-equivalent to the Licensed Product produced by Amgen under Process A thus requiring further manufacturing be performed before the start of the next clinical trial, then such
    [ * ]     date shall have no effect and the first Milestone Event shall be deemed to have occurred upon the administration of a Licensed Product to the first patient in a clinical trial after the
Effective Date. 
  
 (b) For purposes of clarification, if any of
the Milestone Events set forth above in Sections 5.1(a)(ii)-(v) are achieved prior to or in the absence of the achievement of the Milestone Event set forth in Section 5.1(a)(i) then, effective upon achievement of any of such Milestone Events, the
previously unpaid Milestone Payment set forth in Section 5.1(a)(i) shall also become due and payable. No Milestone Payment shall be payable more than once, no matter how many times achieved by one or more Licensed Product(s). Each such Milestone
Payment shall be nonrefundable and noncreditable against Royalties payable pursuant to Section 5.2 and any other fees, other Milestone Payments or other payments due Amgen with respect to Licensed Product(s) under this License Agreement. 

 
 (c) In the event catheter clearance shall be the first indication pursued
by Nuvelo, and the Milestone Event(s) set forth in Sections 5.l(a)(i) or 5.1(a)(ii) is/are first achieved with respect to the catheter clearance indication. Nuvelo shall pay to Amgen fifty percent (50%) of the corresponding Milestone Payment for any
such achieved Milestone Event, with the balance of any such corresponding Milestone Payment being due and payable upon the achievement of such Milestone Event with respect to any non-catheter clearance indication. In the event that Nuvelo shall not
have obtained Regulatory Approval for the treatment of peripheral arterial occlusion in the United States, but off-label gross sales in the United States for the treatment of peripheral arterial occlusion are or exceed
        [ * ]                 Dollars         [ *
]            , (based on data provided by IMS International, or if such data shall not be available, based on such other data mutually agreed to by Amgen and Nuvelo), then Nuvelo shall
immediately pay the balance of any partially paid Milestone Payment under this Section 5.3(c). 
  

	[ * ]	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 6 

 (d) If the Effective Date of this License Agreement is after the date of achievement of any Milestone
Event(s) set forth in Sections 5.1(a)(i) and 5.1(a)(ii), then the corresponding Milestone Payment of such previously achieved Milestone Event shall be deemed waived and not payable to Amgen. 
  
 (e) If the Effective Date of this License Agreement is after the date of
achievement of any Milestone Event(s) set forth in Sections 5.1(a)(iii), (iv) or (v), the corresponding Milestone Payment shall be due within thirty (30) days after the Effective Date of this License Agreement. Notwithstanding the above sentence,
the     [ * ]         Dollar ($ [ * ]            ) Regulatory Approval Milestone incurred by Nuvelo under Section 7.2 of
the Collaboration Agreement as a consequence of the achievement of any such Milestone Event shall be creditable against any Milestone Payments due for the achievement of any Milestone Event(s) set forth in Sections 5.1(a)(iii), (iv) or (v) prior to
or during the Term of this License Agreement. 
  
 5.2
Royalties. Subject to Sections 5.3 and 5.4, below, Nuvelo shall pay to Amgen a Royalty, based on the following Royalty rates, for annual Net Sales of each Licensed Product (on a Licensed Product-by-Licensed Product basis) by Nuvelo, its
Affiliates, or its Sublicensees in the Territory: 
  
 (a) a
Royalty rate of [*] percent (   [*]  ) of that portion of annual Net Sales in the Territory of each such Licensed Product that is less than or equal to        [ *
]            [ * ] (  [ * ]        ); 
  
 (b) a Royalty rate of     [*]     percent (    [ * ]    ) of that portion
of annual Net Sales in the Territory of each such Licensed Product that is greater than    [ * ]                 Dollars ($ [ *
]            ) and less man or equal to     [ * ]                 Dollars ($  [
* ]             ); and 
  
 (c) a Royalty rate of [ * ]     percent (    [ * ]    ) of that portion of annual Net Sales in the Territory of each such Licensed Product that is greater
than     [ * ]                     Dollars ($ [ * ]        ). 
  
 5.3 [ * ] Nuvelo acknowledges that Nuvelo may be obligated to pay
Third Party Payments to             [ * ]
                                        ”)
for licensing of certain [ * ] [ * ]
                    technology with respect to Licensed Products, in addition to the Milestone Payments set forth in Section 5.1 and the Royalties
set forth in Section 5.2 above. Such payments shall be non-creditable against any payments due to Amgen under this License Agreement. 
  
 5.4 Third Party Royalty Reduction. Nuvelo shall be responsible for obtaining any licenses, and for making any Third Party Payments thereunder, or
making any then-due Third Party Payments to Amgen (for forwarding to the licensing Third Party) under any sublicenses granted by Amgen hereunder, for rights to any Third Party intellectual property required to make, have made, use, sell, lease,
offer to sell or lease, have sold, import, export or otherwise exploit, or transfer physical possession of or title in, a Licensed Product in one or more countries in the Territory. With the exception of any Third Party Payments payable to
[*]     for licensing certain         [ *
]                             technology, if, and for so long as Nuvelo is required to pay 
  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 7 

 such Third Party royalties for such license, fifty percent (50%) of the royalties which are payable by Nuvelo shall be
creditable by Nuvelo against any Royalties due to Amgen under Section 5.2 above for the Net Sales of such Licensed Product in such country, provided however, that, on a Licensed Product-by-Licensed Product basis, Nuvelo’s Royalty rate set forth
in Section 5.2 in any given year will not be reduced in excess of two percent (2.0%) (e.g.,[ * ]%, [ * ]% and [ * ]% respectively) as a consequence of any royalties being creditable against the Royalties to be paid to Amgen by Nuvelo. Nuvelo shall
have sole discretion, authority and right with respect to determining whether to enter into an agreement for a license or other rights and to incur an obligation for any Third Party Payments. 
  
 5.5 Competition Reduction. If, and for so long as one or more
Competitive Product(s) shall be commercially available in a country in the Territory and shall have in the aggregate a share of more than [ * ] percent ([ * ]%) of the total market of all Licensed Product(s) in that country as measured by sales
units (based on data provided by IMS International, or if such data shall not be available, based on such other data mutually agreed to by Amgen and Nuvelo), Nuvelo shall have the immediate right to reduce the Royalty rates on Net Sales of each such
Licensed Product(s) in such country by [ * ] percent ([ * ]%) of those set forth in Section 5.2. 
  
 5.6 Term of Royalties. Amgen’s right to receive Royalties under Section 5.2 shall expire, on a Licensed Product-by-Licensed Product basis and
country-by-country basis, upon the later of: (a) ten (10) years after the date of First Commercial Sale of each such Licensed Product; or (b) the expiration of the last-to-expire of the Amgen Patent Rights and (subject to the following sentence)
Joint Patent Rights containing an issued Valid Claim that, but for the license granted by Amgen to Nuvelo, would be infringed by the use or sale by Nuvelo, its Affiliates and Sublicensees of such Licensed Product in such country. Where the Joint
Patent Rights described in subparagraph (b) subsist after expiry of the Amgen Patent Rights, then upon such expiry the Royalties payable pursuant to Section 5.2 (as reduced by Sections 5.4 and 5.5, as applicable) shall be further reduced by [ * ]
percent [ * ]%) of the amount payable immediately before expiry of the Amgen Patent Rights, and shall continue to be payable by Nuvelo if: 
  
 (i) a mutually acceptable outside patent counsel has provided a written opinion to both Parties to the effect that but for a license under such subsisting
Joint Patent Rights, the actual or theoretical using (in accordance with a label claim of, or with published, statistically significant clinical human trial results regarding, a Licensed Product) or selling by a Third Party of a competing
pharmaceutical product within the meaning of Competitive Product would infringe an issued Valid Claim under the Joint Patent Rights, or 
  
 (ii) Nuvelo has elected to continue to retain its exclusive rights to such subsisting Joint Patent Rights, 
  
 but failing which Nuvelo’s obligation to pay all Royalties shall expire and each Party
shall thereafter be free to use and exploit their respective interest in the Joint Patent Rights without the obligation to obtain the consent of, or to account to, the other Party. Notwithstanding any of the foregoing, after expiration of
Amgen’s right to receive Royalties for at least one Licensed Product (i.e. the first Licensed Product), Amgen’s right to receive Royalties for any subsequent Licensed Product shall be determined solely by subparagraph (b) above and not by
subparagraph (a). 
  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 8 

 5.7 Sublicensing in Asian Countries. In the event of a sublicensing by Nuvelo to a Third Party of
the right to Develop and/or Commercialize Licensed Products in Asian Countries, Amgen will waive all of Nuvelo’s Milestone Payments described in Section 5.1(a)(v) above (and the Milestone Payments due under Section 5.1(a)(i) or Section
5.1(a)(ii) shall only apply upon achievement of the corresponding Milestone Event in a country other than a country within the Asian Countries), and the Royalty payment described in Section 5.2 above with respect to Net Sales of Licensed Products in
such Asian Countries, and will instead receive [*] percent ([*]%) of all consideration received by Nuvelo from such Sublicensee. In all other regions, Nuvelo shall remain responsible for all other rights and obligations under this License Agreement,
including making all payments to Amgen in accordance with Sections 5.1 and 5.2 and in guaranteeing the performance of such Sublicensee for all other obligations to Amgen. 
  
 ARTICLE 6 
 INTELLECTUAL PROPERTY 
  
 6.1 Technology
Ownership. Ownership of inventions shall be determined in accordance with the rules of inventorship under United States patent laws. Subject to the licenses granted in Section 2.1, as between the Parties, Amgen shall own all right, title and
interest in and to Amgen Technology, and any Confidential Information contained therein shall be considered the Confidential Information of Amgen. As between the Parties, all right and interest in and to Joint Know-How (which shall be considered the
joint Confidential Information of the Parties) and Joint Patent Rights shall be owned jointly by Nuvelo and Amgen, and shall be subject to the license granted to Nuvelo in Section 2.1. 
  
 6.2 Prosecution. 
  
 (a) At its sole cost and expense, Nuvelo will be responsible (using mutually acceptable outside counsel) for the filing, prosecution, defense and
maintenance of Amgen Patent Rights before all patent authorities in the Territory. Amgen shall have the right to review and comment on such filing, prosecution and defense of the Amgen Patent Rights by Nuvelo and if such outside counsel concludes
that taking any specific action(s) may likely have an adverse effect on the scope or validity of any such Amgen Patent Rights, then Nuvelo shall not take such specific action(s) without the prior express written consent of Amgen and. if Amgen shall
not have given its consent to such action, Nuvelo shall propose an alternative strategy for Amgen’s consideration. To that end, Nuvelo shall instruct such outside counsel to furnish Amgen with a reasonably complete draft of each potential
submission to a patent authority regarding Amgen Patent Rights no later than twenty (20) days (or if given less than twenty (20) days to respond as soon as practicable) prior to the date such submission is proposed to be made, and shall reasonably
consider any of Amgen’s timely comments thereon. Additionally, Nuvelo shall instruct such outside counsel to provide Amgen with a copy of each submission made to and document received from a patent authority regarding any Amgen Patent Rights
reasonably promptly after making such filing or receiving such document. If Nuvelo determines in its sole discretion to not file, prosecute, defend or maintain any claim or patent application or patent within Amgen Patent Rights in any country, then
Nuvelo shall provide Amgen with thirty (30) days prior written notice of such determination to provide Amgen with the right and opportunity to file, prosecute and maintain such claim or patent application or patent at Amgen’s sole cost and
expense. 
  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 9 

 (b) At its own cost and expense, Nuvelo will be responsible (using mutually acceptable outside counsel)
for the filing, prosecution, defense and maintenance of Joint Patent Rights before all patent authorities in the Territory. Amgen shall have the right to review and comment on such filing, prosecution and defense of the Joint Patent Rights by Nuvelo
and if such outside counsel concludes that taking any specific action(s) may likely have an adverse effect on the scope or validity of any such Joint Patent Rights, then Nuvelo shall not take such specific action(s) without the prior express written
consent of Amgen and, if Amgen shall not have given its consent to such action, Nuvelo shall propose an alternative strategy for Amgen’s consideration. To that end, Nuvelo shall instruct such outside counsel to furnish Amgen with a reasonably
complete draft of each potential submission to a patent authority regarding Joint Patent Rights no later than twenty (20) days (or if given less than twenty (20) days to respond as soon as practicable) prior to the date such submission is proposed
to be made, and shall reasonably consider any of Amgen’s timely comments thereon. Additionally, Nuvelo shall instruct such outside counsel to provide Amgen with a copy of each submission made to and document received from a patent authority
regarding any Joint Patent Rights reasonably promptly after making such filing or receiving such document. If Nuvelo determines in its sole discretion to not file, prosecute, defend or maintain or any claim or patent application or patent within
Joint Patent Rights in any country, then Nuvelo shall provide Amgen with thirty (30) days prior written notice of such determination to provide Amgen with the right and opportunity to file, prosecute, defend and maintain such claim or patent
application or patent on behalf of both Parties (at Amgen’s sole cost and expense). 
  
 (c) Amgen and Nuvelo shall each provide to the other any invention disclosures submitted to its respective outside or in-house patent counsel in the normal course of its business which disclose an invention within
Amgen Know-How and Joint Know-How, respectively. Amgen and Nuvelo shall cooperate with each other and render all reasonable assistance in prosecuting and maintaining all intellectual property licensed under this License Agreement. Amgen and Nuvelo
shall cooperate with each other in any such matters, and shall sign any necessary legal papers and provide the Party responsible for such prosecution with data or other information in support thereof (and use their best efforts to ensure the
cooperation of any of their respective personnel and, in the case of Nuvelo, it’s Affiliates and licensee(s) as might reasonably be requested). 
  
 (d) Nuvelo shall be responsible (using mutually acceptable outside counsel) for the filing, prosecution, defense and maintenance of the Product Trademarks
before all trademark authorities in the Territory. For the Product Trademarks solely or jointly owned by Amgen, Amgen shall have the right to review and comment on such filing, prosecution and defense of the Product Trademarks by Nuvelo and if such
outside counsel concludes that taking any specific action(s) may likely have an adverse effect on the scope or validity of any such Product Trademarks, then Nuvelo shall not take such specific action(s) without the prior express written consent of
Amgen, and Nuvelo shall propose an alternative strategy for Amgen’s consideration. To that end, Nuvelo shall instruct such outside counsel to furnish Amgen with a reasonably complete draft of each submission to a trademark authority regarding
the Product Trademarks no later than twenty (20) days prior to the date such submission is proposed to be made, or if given less than twenty (20) days to respond as soon as practicable, and Nuvelo will consider any of Amgen’s reasonably timely
comments thereon. Additionally, Nuvelo shall instruct such outside counsel to provide Amgen with a copy of each submission made to or document received from a 

  

					
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trademark authority regarding any Product Trademarks reasonably promptly after making such filing or receiving of such document. If Nuvelo determines in its
sole discretion to not file, prosecute, defend or maintain a Product Trademark in any country, then Nuvelo shall provide Amgen with thirty (30) days prior written notice of such determination and shall provide Amgen with the right and opportunity to
file, prosecute, defend and maintain such Product Trademark on behalf of Nuvelo. 
  
 6.3 Infringement of Patents and Trademarks by Third Parties. 
  
 (a) At its sole cost and expense, Nuvelo may, but shall not be obligated to, elect to enforce Amgen Patent Rights against any actual, alleged or
threatened infringement by Third Parties and to defend the Amgen Patent Rights against any challenges in the Territory. In the event Nuvelo shall so elect to enforce Amgen Patent Rights against a Third Party infringement, Nuvelo shall seek and
reasonably consider Amgen’s comments before determining the strategy and Amgen, at Nuvelo’s reasonable request and sole cost and expense, shall reasonably assist and cooperate in any such enforcement or defense. If Nuvelo finds it
necessary or desirable to join Amgen as a party, Amgen shall execute all papers or perform such other acts as may reasonably be requested by Nuvelo, at the sole expense of Nuvelo. In the event Nuvelo does not commence an enforcement and/or defense
action pursuant to this Section 6.3(a) within forty-five (45) days after Amgen notifies Nuvelo or is notified by Nuvelo in writing of an actual, alleged or threatened infringement by a Third Party of the Amgen Patent Rights in the Territory (or of
the filing of a declaratory judgment action), Amgen shall be entitled to bring and prosecute such an action at its own cost and expense. If Amgen elects to bring and prosecute such an action, then Nuvelo shall seek and reasonably consider
Amgen’s comments on strategy, and Nuvelo (at Amgen’s request and sole cost and expense) shall reasonably assist and cooperate in any such enforcement or defense. If Amgen finds it necessary or desirable to join Nuvelo as a party, Nuvelo
shall execute all papers or perform such other acts as may be reasonably be required by Amgen, at Amgen’s expense. Amgen shall, at its own expense, be entitled to participate in and to have counsel selected by it participate in any action in
which Nuvelo is a named party. 
  
 (b) At its own cost and
expense, Nuvelo may, but shall not be obligated to, elect to enforce Joint Patent Rights against any actual, alleged or threatened infringement by Third Parties and to defend the Joint Patent Rights against any challenges in the Territory. In the
event Nuvelo shall so elect, Nuvelo shall seek and reasonably consider Amgen’s comments before determining the strategy, and Amgen (at Nuvelo’s request and sole cost and expense) shall reasonably assist and cooperate in any such
enforcement or defense. If Nuvelo finds it necessary or desirable to join Amgen as a party, Amgen shall execute all papers or perform such other acts as may reasonably be required by Nuvelo, at the expense of Nuvelo, In the event Nuvelo does not
commence an enforcement and/or defense action pursuant to this Section 6.3(b) within forty-five (45) days after Amgen notifies Nuvelo or is notified by Nuvelo in writing of an actual, alleged or threatened infringement by a Third Party of the Joint
Patent Rights in the Territory (or of the filing of a declaratory judgment action), Amgen shall be entitled to bring and prosecute such an action at its own cost and expense. If Amgen elects to bring and prosecute such an action, then Amen shall
seek and reasonably consider Nuvelo’s comments on strategy, and Nuvelo (at Amgen’s request and sole cost and expense) shall reasonably assist and cooperate in any such enforcement or defense. If Amgen finds it necessary or desirable to
join Nuvelo as a party, Nuvelo shall execute all papers or perform such other acts as may be reasonably be 

  

					
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required by Amgen, at Amgen’s expense. Nuvelo shall, at its own expense, be entitled to participate in and to have counsel selected by it participate in
any action in which Nuvelo is a named party. 
  
 (c) At its own
cost and expense, Nuvelo may, but shall not be obligated to, elect to enforce the Product Trademarks against Third Parties and to defend the Product Trademarks against any challenges in the Territory. Nuvelo shall seek and reasonably consider
Amgen’s comments before determining the strategy and Amgen, at Nuvelo’s request and sole cost and expense, shall reasonably assist and cooperate in any such enforcement or defense. If Nuvelo finds it necessary or desirable to join Amgen as
a party, Amgen shall execute all papers or perform such other acts as may reasonably be required by Nuvelo, at the expense of Nuvelo. In the event Nuvelo does not commence an enforcement and/or defense action pursuant to this Section 6.3(c) within
forty-five (45) days after Amgen notifies or is notified by Nuvelo in writing of an infringement of the Product Trademarks in the Territory (or of the filing of a declaratory judgment action, in the case of defense actions), Amgen shall be entitled
to bring and prosecute such an action at its own cost and expense. If Amgen elects to bring and prosecute such an action, then Amen shall seek and reasonably consider Nuvelo’s comments on strategy and Nuvelo, at Amgen’s request and sole
cost and expense, shall reasonably assist and cooperate in any such enforcement or defense. If Amgen finds it necessary or desirable to join Nuvelo as a party, Nuvelo shall execute all papers or perform such other acts as may be reasonably be
required by Amgen and at Amgen’s expense. Nuvelo shall, at its own expense, be entitled to participate in and to have counsel selected by it participate in any action in which Nuvelo is a named party. 
  
 (d) Any recovery realized as a result of any such litigation described in
this Section 6.3 (after reimbursement of the Parties’ reasonable attorneys’ fees for outside counsel and litigation expenses) shall be allocated in proportion to each Party’s respective profits realized from the Development,
manufacturing and Commercialization of Licensed Products under this License Agreement during the immediately preceding Calendar year. 
  
 (e) Neither Party shall enter into any settlement of any suit brought under this Section 6.3 that affects the other Party’s rights or interests
without the other Party’s written consent, which consent shall not be unreasonably withheld or delayed. 
  
 (f) A Party bringing suit under this Section 6.3 shall notify the other Party of all substantive developments with respect to such enforcement or
defensive actions including, but not limited to, all material filings, court papers and other related documents, substantive settlement negotiations and offers of settlement. 
  
 (g) Each Party shall promptly notify the other upon becoming aware of any Third Party infringement of the Amgen Patent
Rights, Joint Patent Rights, Product Trademarks, Amgen Know-How or Joint Know-How. 
  
 6.4 Infringement of Third Party Rights. 
  
 (a) At its own cost and expense, Nuvelo shall have the first right to defend any action naming Nuvelo, or both Parties, and claiming the infringement of (i) any Third Party Patent 

  

					
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Rights or other intellectual property rights through the making, having made, using, selling, offering to sell or having sold, importing, exporting or
otherwise exploiting, transferring possession of title or interest in, Licensed Product, or (ii) any Third Party Trademark through the Development, manufacturing or Commercialization of a Licensed Product. The Parties shall confer with each other
and cooperate during the defense of any such action. At Nuvelo’s cost and expense, Amgen shall assist and cooperate with Nuvelo in the defense of any such action. If Nuvelo finds it necessary or desirable to join Amgen as a party, Amgen shall
execute all papers or perform such other acts as may reasonably be required by Nuvelo, at Nuvelo’s expense. Subject to the foregoing, Amgen shall, at its own expense, be entitled to participate in and to have counsel selected by it participate
in any action in which Amgen is a named party. 
  
 (b) Each Party
shall promptly notify the other upon becoming aware of any actual, alleged or threatened Third Party claim or action against Nuvelo and/or Amgen for infringement of any Third Party Trademark through the Development, manufacturing or
Commercialization of a Licensed Product; or any Third Party Patent Rights through the making, having made, using, selling, offering to sell, and importing, exporting or otherwise transferring physical possession of or otherwise transferring title in
and to Licensed Products in the Territory. 
  
 (c) Neither Party
shall enter into any settlement of any suit referenced under this Section 6.4 that affects the other Party’s rights or interests without the other Party’s written consent, which consent shall not be unreasonably withheld or delayed.

  
 (d) A Party defending suit under this Section 6.4 shall notify
the other Party of all substantive developments with respect to such enforcement or defensive actions including, but not limited to, all material filings, court papers and other related documents, substantive settlement negotiations and offers of
settlement. 
  
 6.5 Employee Obligations. Prior to
beginning work relating to any aspect of the subject matter of this License Agreement and/or being given access to Amgen Know-How or Joint Know-How or the Confidential Information of the other Party, each employee, consultant or agent of Nuvelo and
Amgen shall have signed or shall be required to sign a non-disclosure and invention assignment agreement pursuant to which each such person shall agree to comply with all of the obligations of Nuvelo or Amgen, as appropriate, substantially
including: (a) promptly reporting any invention, discovery, process, software program or other intellectual property right, as appropriate within Amgen Know-How or Joint Know-How; (b) assigning to Nuvelo or Amgen, as appropriate, all of his or her
right, title and interest in and to any such invention, discovery, process, software program or other intellectual property right; (c) cooperating in the preparation, filing, prosecution, maintenance and enforcement of any Patent Rights; (d)
performing all acts and signing, executing, acknowledging and delivering any and all papers, documents and instruments required for effecting the obligations and purposes of this License Agreement; and (e) abiding by the obligations of
confidentiality and non-use set forth in this License Agreement. It is understood and agreed that any such non-disclosure and invention assignment agreement need not be specific to this License Agreement. 
  
 6.6 Patent Marking. Licensed Products marketed and sold by Nuvelo
hereunder shall be marked with appropriate patent numbers or indicia of Amgen Patent Rights and/or Joint 

  

					
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Patent Rights to the extent permitted by law in those countries of the Territory in which such markings have notice value as against infringers of patents.

  
 6.7 Waiver. 
  
 (a) Nuvelo, on behalf of itself and its directors, employees, officers,
shareholders, agents, successors and assigns hereby waives any and all actions and causes of action, claims and demands whatsoever, in law or equity, of any kind it or they may have against Amgen, its directors, employees, officers, shareholders,
agents, successors and assigns, which may arise in any way, except as a result of Amgen’s gross negligence, recklessness or willful misconduct in the performance of its rights or obligations under Sections 6.2, 6.3, 6.4 and 6.5. 
  
 (b) Amgen, on behalf of itself and its directors, employees, officers,
shareholders, agents, successors and assigns hereby waives any and all actions and causes of action, claims and demands whatsoever, in law or equity, of any kind it or they may have against Nuvelo, its directors, employees, officers, shareholders,
agents, successors and assigns, which may arise in any way, except as a result of Nuvelo’s gross negligence, recklessness or willful misconduct in the performance of its rights or obligations under Sections 6.2, 6.3, 6.4 and 6.5. 
  
 ARTICLE 7 
 PAYMENTS; RECORDS; AUDIT 
  
 7.1 Payments. 
  
 (a)
U.S. Dollars. All payments to be made under this License Agreement shall be made in United States Dollars by bank wire transfer in immediately available funds to a bank account designated from time-to-time by Amgen. 
  
 (b) Royalty Payments. All Royalties payable to Amgen under this
License Agreement shall be paid within sixty (60) days of the end of each Calendar Quarter except as otherwise specifically provided herein. Each payment of Royalties owing to Amgen shall be accompanied by a statement certified by an executive
officer of Nuvelo as accurate to the best of its ability consistent with Nuvelo’s standard practices in performing such computations and in accordance with GAAP, (i) on a country-by-country basis, of the amount of gross sales of Licensed
Products, an itemized calculation of Net Sales of each Licensed Product during such Calendar Quarter, (ii) the amount of aggregate worldwide gross sales of Licensed Product and Net Sales during such Calendar Quarter and (iii) on a cumulative basis
for the current year and the amount of Royalty due on Net Sales during such Calendar Quarter. 
  
 (c) Foreign Exchange. Net Sales received in currencies other than United States Dollars shall be converted into the United States Dollar equivalent, at the average rate of exchange for the Calendar Quarter to
which such payments relate, as reported in Bloomberg Professional, a service of Bloomberg L.P., during the Royalty period of such Net Sales, or in the event Bloomberg Professional is not available then The Wall Street Journal. 
  
 (d) Late Payments. Any amounts not paid by Nuvelo when due under this
License Agreement shall be subject to interest from and including the date payment is due through and including the date upon which Nuvelo has made a wire transfer of immediately available funds 

  

					
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into an account designated by Amgen of such payment at a rate equal to the lesser of (i) the sum of three percent (3%) plus the annual prime rate or
successive annual prime rates of interest quoted in the Money Rates section of the on-line edition, of the Wall Street Journal (at http://www.interactive.wsj.com) calculated daily on the basis of a 365-day year or (ii) the highest rate permitted by
applicable law. 
  
 (e) Blocked Currency. If Nuvelo, its
Affiliates and/or Sublicensees are unable to convert a foreign currency into United States Dollars for reasons beyond their respective control, or are restricted by law or regulation from remitting Royalties from any country of sale, Nuvelo shall
cause such payment to be made by deposit to the credit and account of Amgen or its designated nominee in any commercial bank designated by Amgen in the applicable country. Nuvelo shall deliver to Amgen proper evidence of such deposit. 
  
 (f) Withholding Taxes. Any taxes, assessments and fees to be withheld
by Nuvelo under the laws, rules or regulations of any foreign country for the account of Amgen shall be promptly paid by Nuvelo for and on behalf of Amgen to the appropriate governmental authority, and Nuvelo shall furnish Amgen with a copy of the
original official receipt for the payment of such tax within thirty (30) days of payment. Any such tax, assessment and fee actually paid on Amgen’s behalf shall be deducted from any Royalty payments due to Amgen. Nuvelo agrees to make all
lawful and reasonable efforts to minimize such taxes, assessments and fees to Amgen. 
  
 7.2 Records; Audit. Nuvelo shall keep or cause to be kept such records as are required in sufficient detail to track and determine (in a manner consistent with GAAP) the accuracy of calculations of all sums or
credits due under this License Agreement and to accurately account for the calculations of all Royalties due for Licensed Products under this License Agreement. Such records shall be retained for a period of the later of (i) a three (3) year period
following the year in which any payments were made hereunder and/or (ii) the expiration of the applicable tax statute of limitations (or any extensions thereof), or such longer period as may be required by law. Once per Calendar Year, Amgen shall
have the option to engage (at its own expense) an independent certified public accountant, appointed by Amgen and reasonably acceptable to Nuvelo, to examine in confidence the books and records of Nuvelo as may be necessary to determine, with
respect to any Calendar Year, the correctness or completeness of any report or payment required to be made under this License Agreement; provided however, that the books and records for any particular Calendar Year shall only be subject to one
audit. The report of such accountant shall be limited to a certificate verifying any report made or payment submitted by Nuvelo during such period but may include, in the event the accountant shall be unable to verify the correctness of any such
payment, information relating to why such payment is unverifiable. All information contained in any such certificate shall be deemed the Confidential Information of Nuvelo hereunder. If any audit performed under this Section 7.2 discloses a variance
of more than five percent (5%) from the amount of the “original report; showing the calculation of a Royalty under section 5.2 of this License Agreement or calculation of consideration due to Amgen under section 5.7 of this License Agreement,
Nuvelo shall bear the full cost of the performance of such audit. Upon the expiration of three (3) years following the end of any Calendar Year, the calculation of any such amounts payable with respect to such Calendar Year shall be binding and
conclusive upon Amgen, and Nuvelo shall be released from any liability or accountability with respect to such amounts for such Calendar Year. 
  

					
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 ARTICLE 8 
 PUBLICATIONS 
  
 8.1
Procedure. Nuvelo shall determine the overall strategy for and have the right of publishing and presenting results of pre-clinical and clinical studies of Licensed Products. However, each Party to this License Agreement recognizes that the
publication of papers regarding results of and other information involving the activities under this License Agreement (including oral presentations and abstracts) may be beneficial to both Parties, provided such publications are subject to
reasonable controls to protect Confidential Information. In particular, it is the intent of the Parties to maintain the confidentiality of any Confidential Information included in any patent application until such patent application has been
published. Accordingly, Amgen will have the right to review and approve any paper proposed for publication by Nuvelo (including oral presentations and abstracts) which utilizes Confidential Information of Amgen. Before any such paper is submitted
for publication or an oral presentation made, Nuvelo will deliver a complete copy of the paper or materials and abstracts for oral presentation to Amgen at least sixty (60) days prior to submitting the paper to a publisher or making the
presentation. Amgen will review any such paper and give its comments to Nuvelo within thirty (30) days after the delivery of such paper to Amgen. With respect to oral presentation materials and abstracts, Amgen will make reasonable efforts to
expedite review of such materials and abstracts and will return such items as soon as practicable to Nuvelo with appropriate comments, if any, but in no event later than thirty (30) days from the date of delivery to Amgen. Nuvelo will comply with
Amgen’s request to delete references to Amgen’s Confidential Information in any such paper and agrees to withhold publication of same for an additional thirty (30) days in order to permit the Parties to obtain patent protection, if either
of the Parties deems it necessary, in accordance with the terms of this License Agreement. Nuvelo will have the right to review and approve any paper proposed for publication by Amgen (including oral presentations and abstracts) which describes
Licensed Products or which includes Confidential Information of Nuvelo. Before any such paper is submitted for publication or an oral presentation made, Amgen will deliver a complete copy of the paper or materials and abstracts for oral presentation
to Nuvelo at least sixty (60) days prior to submitting the paper to a publisher or making the presentation. Nuvelo will review any such paper, materials and abstracts and give its comments to Amgen within thirty (30) days after the delivery of such
paper to Nuvelo. With respect to oral presentation materials and abstracts, Nuvelo will make reasonable efforts to expedite review of such materials and abstracts and will return such items as soon as practicable to Amgen with appropriate comments,
if any, but in no event later than thirty (30) days from the date of delivery to Nuvelo. Amgen will comply with Nuvelo’s request to delete references to Nuvelo’s Confidential Information in any such paper and agrees to withhold publication
of same for an additional thirty (30) days in order to permit the Parties to obtain patent protection, if either of the Parties deems it necessary, in accordance with the terms of this License Agreement. 
  
 8.2 Credit. Any such publication or presentation will include
recognition of the contributions of the other Party according to standard practice for assigning scientific credit, either through authorship or acknowledgment as may be appropriate. 
  

					
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 ARTICLE 9 
 CONFIDENTIALITY 
  
 9.1
Treatment of Confidential Information. The Parties agree that during the Term, and for a period of five (5) years after this License Agreement expires or terminates, a Party receiving Confidential Information of the other Party shall (a)
maintain such Confidential Information in confidence to the same extent such Party maintains its own confidential or proprietary information or trade secrets of similar kind and value (but at a minimum each Party shall use reasonable best efforts to
maintain such Confidential Information in confidence); (b) not disclose such Confidential Information to any Third Party without the prior written consent of the disclosing Party, except for disclosures to its Affiliates and Sublicensees who agree
to be bound by obligations of non-disclosure and non-use at least as stringent as those contained in this Article 9; and (c) not use such Confidential Information for any purpose except those purposes permitted by this License Agreement. Neither
Party shall knowingly disclose to the other Party any Third Party information or know-how that such Party does not have the legal right to disclose to the other Party and/or which it has a contractual obligation not to disclose to the other Party.

  
 9.2 Authorized Disclosure. Notwithstanding any other
provision of this License Agreement, each Party may disclose Confidential Information of the other Party: 
  
 (a) to the extent and to the persons and entities as required by an applicable law, rule, regulation, legal process, court order or the rules of the
National Association of Securities Dealers or of a Regulatory Authority; or 
  
 (b) as necessary to file, prosecute or defend those patent applications or patents for which either Party has the right to assume filing, prosecution, defense or maintenance, pursuant to Section 6.2 of this License
Agreement; or 
  
 (c) to prosecute or defend litigation or
otherwise establish rights or enforce obligations under this License Agreement, but only to the extent that any such disclosure is necessary. 
  
 The Party required or intending to disclose the other Party’s Confidential Information under Sections 9.2(a) or (c) shall first have given prompt notice to the other
Party to enable it to seek any available exemptions from or limitations on such disclosure requirement and shall reasonably cooperate in such efforts by the other Party. 
  
 9.3 Materials. Pursuant to Section 16.9(c) of the Collaboration Agreement, the Parties anticipate that Amgen may
transfer certain of its Amgen Know How and Amgen Material and Manufacturing Information to Nuvelo; provided however, that Nuvelo agrees and acknowledges that Amgen may, but shall be under no obligation, to transfer any Amgen Know How and Amgen
Material and Manufacturing Information characterized, conceived, developed, derived, generated or identified by Amgen after the Effective Date. Nuvelo agrees that it shall use such Amgen Know How and Amgen Material and Manufacturing Information only
in accordance with the terms and conditions of this License Agreement and will transfer such Amgen Know How and Amgen Material and Manufacturing Information only to a Third Party 

  

					
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which has agreed in writing to be bound by obligations of confidentiality and non-use at least as restrictive as set forth herein and only to use in
accordance with the terms of this License Agreement. Nuvelo will promptly thereafter provide notice of such transfer to Amgen. 
  
 9.4 Publicity; Terms of Agreement. The Parties agree that the existence of and the material terms of this License Agreement shall be considered
Confidential Information of both Parties, subject to the special authorized disclosure provisions set forth below in this Section 9.4 (in lieu of the authorized disclosure provisions set forth in Section 9.2, to the extent of any conflict) and
without limiting the generality of the definition of Confidential Information. The Parties will mutually agree upon the text of a press release announcing the execution of this License Agreement. Thereafter, if either Party desires to make a public
announcement concerning this License Agreement or the terms hereof that differs from this mutually agreed upon text, such Party shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for its prior
review and approval, such approval not to be unreasonably withheld or delayed. A Party shall not be required to seek permission from the other Party to repeat any information as to the terms of this License Agreement that have already been publicly
disclosed by such Party, in accordance with the foregoing, or by the other Party. Either Party may disclose the terms of this License Agreement to potential investors who agree to be bound by obligations of non-disclosure and non-use at least as
stringent as those contained in this Article 9. The Parties acknowledge that Amgen and/or Nuvelo may be obligated to file a copy of this License Agreement with the U.S. Securities and Exchange Commission (the “SEC”) with its next quarterly
report on Form 10-Q, annual report on Form 10-K or current report on Form 8-K or with any registration statement filed with the U.S. Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended, and each such Party shall be
entitled to make such filing; provided however, that it requests confidential treatment of the more sensitive terms hereof to the extent such confidential treatment is reasonably available to the filing Party under the circumstances then prevailing.
In the event of any such filing, the filing Party will provide the non-filing Party with an advance copy of the License Agreement marked to show provisions for which the filing Party intends to seek confidential treatment and shall reasonably
consider the non-filing Party’s timely comments thereon. 
  
 9.5 Use of Names, Logos or Symbols. Subject to the licenses granted under Section 2.2, and further subject to the authorized disclosure provisions under Sections 9.2(a) and 9.4, no Party hereto shall use the name, Trademarks,
physical likeness, employee names or owner symbol of any other party for any purpose (including, without limitation, private or public securities placements) without the prior written consent of the affected Party, such consent not to be
unreasonably withheld or delayed so long as such use of name is limited to objective statement of fact rather than for endorsement purposes. Nuvelo shall not use any Trademark either substantially resembling or which is confusingly similar to any of
Amgen’s Trademarks in connection with the subject matter of this License Agreement. 
  

					
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 ARTICLE 10 
 REPRESENTATIONS AND WARRANTIES 
  
 10.1 Representations and Warranties of Nuvelo. Nuvelo hereby represents and warrants to Amgen that as of the Effective Date of the Collaboration Agreement: 
  
 (a) Corporate Existence, Power and Authority. It is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this License
Agreement and to perform its obligations hereunder including, without limitation the right to grant the licenses granted hereunder. It has taken all necessary corporate action on its part required to authorize the execution and delivery of this
License Agreement and the performance of its obligations hereunder, 
  
 (b) Binding Agreement. This License Agreement has been duly executed and delivered on behalf of Nuvelo and constitutes a legal, valid and binding obligation of Nuvelo that is enforceable against it in accordance with its terms.

  
 (c) No Conflict. The execution, delivery and
performance of this License Agreement by Nuvelo does not conflict with and would not result in a breach of any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor does it violate any
material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 
  
 (d) Validity. It is aware of no action, suit, inquiry or investigation instituted by any Third Party which questions or threatens the validity of
this License Agreement. 
  
 (e) Expertise. In entering into
this License Agreement, Nuvelo has relied solely on its own scientific and commercial experience and its own analysis and evaluation of both the scientific and commercial value of the Licensed Products. 
  
 (f) Business Condition. It is not in violation of its charter, bylaws,
or any other organizational document, or in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to it, which violation, individually or in the aggregate,
would reasonably likely have a materially adverse effect on its business or financial condition. Except as may be set forth in any documents required to be filed by it under the Securities Act or Exchange Act, as the case may be, it is not aware of
any facts or circumstances, individually or in the aggregate, which would reasonably likely have a materially adverse effect on its business or financial condition. 
  
 10.2 Representations and Warranties of Amgen. Amgen hereby represents and warrants to Nuvelo that as of the Effective
Date of the Collaboration Agreement: 
  
 (a) Corporate
Existence, Power and Authority. It is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has full corporate power and authority and the legal right to own and operate its property and
assets and to carry on its business as it is now being conducted and as contemplated in this License Agreement and to perform its obligations hereunder including, without limitation, the right to grant the licenses granted hereunder. It has taken
all necessary corporate action on its part required to authorize the execution and delivery of this License Agreement and the performance of its obligations hereunder. 
  

					
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 (b) Binding Agreement. This License Agreement has been duly executed and delivered on behalf of
Amgen and constitutes a legal, valid and binding obligation of Amgen that is enforceable against it in accordance with its terms. 
  
 (c) No Conflict. The execution, delivery and performance of this License Agreement by Amgen does not conflict with and would not result in a breach
of any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor does it violate any material law or regulation of any court, governmental body or administrative or other agency having
jurisdiction over it. 
  
 (d) Validity. It is aware of no
action, suit, inquiry or investigation instituted by any Third Party which questions or threatens the validity of this License Agreement. 
  
 (e) Business Condition. It is not in violation of its charter, bylaws, or any other organizational document, or in violation of any law,
administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to it, which violation, individually or in the aggregate, would reasonably likely have a materially adverse effect on its
business or financial condition. Except as may be set forth in any documents filed with the Securities and Exchange Commission, as required to be filed by it under the Securities Act or Exchange Act, as the case may be, it is not aware of any facts
or circumstances, individually or in the aggregate, which would reasonably likely have a materially adverse effect on its business or financial condition. 
  
 10.3 Mutual Covenants. Each Party hereby covenants to the other Party as follows: 
  
 (a) No Conflict. It shall not during the term of this License Agreement grant any right, license, consent or
privilege to any Third Party(ies) in the Territory which would conflict with the rights granted to the other Party under this License Agreement, and shall not take any action that would in any way prevent it from assuming its obligations or granting
the rights granted to the other Party under this License Agreement or that would otherwise materially conflict with or adversely affect its obligations or its assumption of the rights granted to the other Party under this License Agreement.

  
 (b) Exclusivity. It shall work exclusively with the
other Party with respect to Licensed Products (subject to Nuvelo’s rights under Sections 2.3 and 4.1 of this License Agreement to grant sublicenses to Third Parties). It shall not, directly or indirectly, make, have made, use, sell, offer to
sell, import, export or otherwise transfer physical possession of or otherwise transfer title in (for purposes of Developing, manufacturing or Commercializing) a Competitive Product in the Territory, nor license or otherwise enable a Third Party to
take such actions during the Term. If either Party acquires Control of a Competitive Product as an incident to an otherwise strategic acquisition of or merger with a Third Party, such Competitive Product shall be deemed a “Licensed
Product” and be subject to the terms and conditions of this License Agreement, with no additional obligation on the other Party to pay any other consideration, including any license fee or milestone payment or the like. 
  
 (c) Regulatory Data. It shall store and provide the other Party access
to source data supporting all Regulatory Filings and Regulatory Approvals for the longer of (i) ten (10) years or 

  

					
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relating to Licensed Products or relating to requests regarding Licensed Products from any Regulatory Authority in the Territory. 
  
 10.4 Covenants of Nuvelo. 
  
 (a) No Debarment. In the course of the Development, manufacture and
Commercialization of Licensed Products and during the Term, Nuvelo shall not knowingly use and shall not have knowingly used any employee or consultant who is or has been debarred by a Regulatory Authority or, to the best of Nuvelo’s knowledge,
is or has been the subject of debarment proceedings by a Regulatory Authority. 
  
 (b) Compliance. Nuvelo shall comply with all applicable statutes, regulations and guidance of Regulatory Authorities in carrying out its activities regarding the Development, manufacturing and Commercialization
of Licensed Products in the Territory. 
  
 (c) Diligence.
Nuvelo covenants that it shall use Commercially Reasonable Efforts to carry out its obligations in accordance with the terms of this License Agreement including, as applicable, the Development, manufacturing and Commercialization of Licensed
Products in the Territory in accordance with the terms of this License Agreement. Without limiting the generality of the foregoing obligation, Nuvelo covenants that: 
  
 (i) Nuvelo shall use Commercially Reasonable Efforts to administer a Licensed Product to a patient in a
government-approved clinical trial within eighteen (18) months after the Effective Date of the Collaboration Agreement. In the event Nuvelo fails to administer such Licensed Product in such time period then, within
[*]         ([ * ]) months after the Effective Date, Nuvelo shall either pay Amgen a [ * ]             Dollar ($ [ * ]
        ) maintenance fee or Amgen may terminate this License Agreement and Nuvelo shall immediately return all rights to Amgen. 
  
 (ii) Nuvelo shall use Commercially Reasonable Efforts to administer a Licensed Product to a patient in a
government-approved clinical trial within [ * ]             ([*]) months after the Effective Date of the Collaboration Agreement. In the event Nuvelo fails to administer such Licensed
Product in such time period then, in addition to any payment that may have been due under subsection (i) above and within twenty-five (25) months after the Effective Date, in addition to the payment in subsection (i) above, Nuvelo will either pay
Amgen a[*] [ * ] Dollar ($ [ * ]        ) maintenance fee or Amgen may terminate this License Agreement and Nuvelo shall immediately return all rights to Amgen. 
  
 (iii) Nuvelo shall use Commercially Reasonable Efforts to
administer a Licensed Product to a patient in a government approved clinical trial within [*]         ([*]) months after the Effective Date of the Collaboration Agreement. In the event Nuvelo fails to
administer such Licensed Product in such time period, then Amgen shall have the right to terminate this License Agreement and Nuvelo shall immediately return all rights to Amgen. 
  
 (d) No Misappropriation. It shall not knowingly misappropriate the trade secret of a Third Party in its activities to
Develop, manufacture or Commercialize Licensed Products. 
  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 21 

 (d) No Misappropriation. It shall not knowingly misappropriate the trade secret of a Third Party
in its activities to Develop, manufacture or Commercialize Licensed Products. 
  
 10.5 Disclaimers. EXCEPT AS EXPRESSLY PROVIDED HEREIN, THE MATERIALS AND INFORMATION PROVIDED HEREUNDER ARE BEING PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES. NEITHER PARTY MAKES
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY TYPE WHATSOEVER REGARDING THE MATERIALS AND INFORMATION. EACH PARTY EXPRESSLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE OR OF NONINFRINGEMENT.

  
 ARTICLE 11 
 INDEMNIFICATION 
  
 11.1 Indemnification by Amgen. Amgen hereby agrees to defend, hold harmless and indemnify (collectively “Indemnify” or be
“Indemnified”) Nuvelo and its Affiliates, agents, directors, officers and employees (the “Nuvelo Indemnitees”) from and against any and all Losses resulting directly or indirectly from any Third Party claims, suits, actions or
demands arising directly or indirectly out of (a) any of Amgen’s representations and warranties set forth in this License Agreement being untrue in any material respect when made and/or (b) any material breach or material default by Amgen of
its covenants and obligations under this License Agreement. Amgen’s indemnification obligation does not include any responsibility for product liability claims, including but not limited to negligence, strict liability, and breach of warranty
claims, arising out of or relating to the Licensed Product. To be eligible to be so Indemnified as described in this Section 11.1, the Nuvelo Indemnitees shall provide Amgen with prompt notice of any claims, suits, actions or demands (with a
description of the claim and the nature and amount of any such Loss) giving rise to the indemnification obligation pursuant to this Section 11.1 and the exclusive ability to defend such claims, suits, actions or demands (with the reasonable
cooperation of Nuvelo Indemnitees); provided however, that Amgen shall be relieved of its obligations only if any failure by the Nuvelo Indemnitee to deliver prompt notice shall have been prejudicial to its ability to defend such claims, suits,
actions or demands. Nuvelo shall have the right to retain its own counsel, at its own expense, if representation of the counsel of Amgen would be inappropriate due to actual or potential differing interests between the Parties. Amgen shall not
settle or consent to the entry of any judgment with respect to any claim for Loss for which indemnification is sought, in a manner that would materially adversely affect Nuvelo, without Nuvelo’s prior written consent (not to be unreasonably
withheld). Amgen’s obligation to Indemnify the Nuvelo Indemnitees pursuant to this Section 11.1 shall not apply to the extent of any Losses (i) that arise from the negligence or intentional misconduct of any Nuvelo Indemnitee; (ii) that arise
from Nuvelo’s material breach of any representation, warranty, covenant or obligation under this License Agreement; or (iii) for which Nuvelo is obligated to Indemnify the Amgen Indemnitees pursuant to Section 11.2 of this License Agreement.

  
 11.2 Indemnification by Nuvelo. Nuvelo hereby agrees to
Indemnify Amgen and its Affiliates, agents, directors, officers and employees (the “Amgen Indemnitees”) from and against any and all Losses arising from Third Party claims, suits, actions or demands resulting directly or indirectly from
(a) any of Nuvelo’s representations and warranties set forth in this License Agreement being untrue in any material respect when made; (b) the Development, manufacture 

  

					
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and Commercialization of Licensed Products by, on behalf of or under authority of Nuvelo, its Affiliates or its Sublicensees; and/or (c) any material breach
or material default by Nuvelo of its covenants and obligations under this License Agreement. Nuvelo is responsible for the defense of any and all product liability claims, including but not limited to negligence, strict liability, and breach of
warranty claims, arising out of or relating to the Licensed Product. Nuvelo is also responsible for any settlements or judgments arising from such product liability claims arising out of or relating to the Licensed Product. Nuvelo, its sublicensees,
its successors and its Affiliates shall be deemed to bear the obligations under this Section 11.2 jointly and severally. To be eligible to be Indemnified as described above in this Section 11.2, the Amgen Indemnitees shall provide Nuvelo with prompt
notice of any claims, suits, actions or demands (with a description of the claim and the nature and amount of any such Loss) giving rise to the indemnification obligation pursuant to this Section 11.2 and the exclusive ability to defend such claims,
suits, actions or demands (with the reasonable cooperation of Amgen Indemnitees); provided however, that Nuvelo shall be relieved of its obligations only if any failure by the Amgen Indemnitee to deliver prompt notice shall have been prejudicial to
its ability to defend such claims, suits, actions or demands. Amgen shall have the right to retain its own counsel, at its own expense, if representation of the counsel of Nuvelo would be inappropriate due to actual or potential differing interests
between the Parties. Nuvelo shall not settle or consent to the entry of any judgment with respect to any claim for Loss for which indemnification is sought, in a manner that would materially adversely affect Amgen, without Amgen’s prior written
consent (not to be unreasonably withheld). Nuvelo’s obligation to Indemnify the Amgen Indemnitees pursuant to this Section 11.2 shall not apply to the extent of any Losses (i) that arise from the negligence or intentional misconduct of any
Amgen Indemnitee (including but not limited to that arising from the manufacture of Licensed Product by Amgen), (ii) that arise from any material breach by Amgen of any representation, warranty, covenant or obligation under this License Agreement or
(iii) for which Amgen is obligated to Indemnify the Nuvelo Indemnitees pursuant to Section 11.1 of this License Agreement. 
  
 11.3 Insurance. Within thirty (30) days of the Effective Date, Nuvelo shall at its own expense procure and maintain an insurance policy/policies,
including product liability insurance (but excluding clinical trial insurance policies which shall be required only while trials are ongoing), adequate to cover its obligations hereunder and which is/are consistent with normal business practices of
prudent companies similarly situated. Nuvelo may self-insure all or part of any such obligation consistent with pharmaceutical industry practices but Nuvelo shall at all times maintain the following minimum Third Party insurance coverage:

  

				
	 Type of Coverage

	  	Amount

	 Commercial General Liability Insurance
	  	$	2,000,000.00
	 Product Liability Insurance
	  	$	1,000,000.00
	 Excess Liability Insurance
	  	$	1,000,000.00
	 Clinical Trial Liability Insurance
	  	$	3,000,000.00
	 Workman’s Compensation
	  	 	Statutory Limits

  

					
	 Amgen Contract #200200784
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 Each insurance policy required by and procured by Nuvelo under this Section 11.3 shall name Amgen as an additional
insured. Such insurance shall not be construed to create a limit of Nuvelo’s liability with respect to its indemnification obligations under this Article 11. Nuvelo shall provide Amgen with a copy of the certificate of insurance or other
evidence of such insurance and/or self-insurance, upon request. Nuvelo shall provide Amgen with written notice at least thirty (30) days prior to the cancellation, non-renewal or material change in such insurance or self-insurance which materially
adversely affects the rights of Amgen hereunder. In addition to the foregoing requirements under this Section 11.3 of the License Agreement, prior to the First Commercial Sale, Nuvelo shall secure product liability insurance with limits no less than
$15,000,000.00 per claim and $15,000,000.00 in aggregate. 
  
 11.4 Pre-Effective Date Losses. In accordance with Section 16.12 of the Collaboration Agreement, each Party shall retain its obligations for Losses accrued under the Collaboration Agreement and this License Agreement shall not
release, waive, alter or otherwise modify the Parties’ respective obligations thereunder. Other than with respect to its obligation for Losses due under and prior to the termination of the Collaboration Agreement, Nuvelo shall not assume or be
liable for (pursuant to this License Agreement) any Losses for which Amgen is previously responsible, resulting from or arising in connection with the Development, manufacture or Commercialization of Licensed Product on or prior to the Effective
Date. 
  
 11.5 Limitation of Liability. NEITHER PARTY NOR
ITS RESPECTIVE AFFILIATES SHALL BE LIABLE FOR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE INCURRED BY THE OTHER PARTY IN CONNECTION WITH THIS LICENSE AGREEMENT, INCLUDING
BUT NOT LIMITED TO DAMAGES MEASURING LOST PROFITS OR BUSINESS OPPORTUNITIES. 
  
 ARTICLE 12 
 TERM AND TERMINATION 
  
 12.1. Term. This License Agreement shall become effective on the Effective Date and shall remain in full force and
effect, unless earlier terminated pursuant to this Article 12, on a country-by-country basis until there is no remaining Royalty payment obligation in any country. Upon the expiry of Nuvelo’s obligation to pay “Royalties under this License
Agreement for a given Licensed Product in a country, Nuvelo shall have a fully paid, royalty free, unrestricted license under the Amgen Technology and the Amgen Material and Manufacturing Information to make, have made, use, sell, offer to sell,
have sold, import, export and otherwise exploit, transfer physical possession of and transfer title or interest in or to such given Licensed Product in such country. 
  
 12.2 Termination for Convenience. Nuvelo may terminate this License Agreement at any time by providing ninety (90)
days prior written notice of termination to Amgen. 
  

					
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 12.3 Termination by Amgen. In the event Nuvelo shall not timely pay any maintenance fees due
pursuant to either Section 10.4(c)(i) or 10.4(c)(ii) or shall not timely administer a Licensed Product to a patient pursuant to Section 10.4(c)(iii), Amgen shall have the sole right to terminate this License Agreement by providing thirty (30) days
prior written notification of termination to Nuvelo. 
  
 12.4
Termination for Default. 
  
 (a) In the event any material
representation or warranty made hereunder or under the Warrant Purchase Agreement by either Party shall have been untrue in any material respect (“Representation Default”), or upon any material breach or material default of a material
obligation of this License Agreement or the Warrant Purchase Agreement (as defined in the Collaboration Agreement) by a Party (“Performance Default”), the Party not in default (“Non-Defaulting Party”) must first give the other
Party (“Defaulting Party”) written notice thereof (“Notice of Default”), which notice must state the nature of the Representation Default or Performance Default in reasonable detail and must request the Defaulting Party cure such
Representation Default or Performance Default within sixty (60) days. During any such 60-day period after receipt or delivery of a Notice of Default under this Section 12.4(a) for which termination of this License Agreement, in whole or in part is a
remedy, all of the Party’s respective rights and obligations under the affected parts of this License Agreement, including but not limited to Development, manufacturing and Commercialization, shall (to the extent applicable) remain in force and
effect. If the Defaulting Party shall dispute the existence, extent or nature of any default set forth in a Notice of Default, the Parties shall use good faith efforts to resolve the dispute. 
  
 (b) Nuvelo. In the event of a Representation Default or a Performance
Default by Nuvelo that shall not have been cured within the period set forth in Section 12.4(a) above after receipt of a Notice of Default (or Nuvelo shall not have presented a reasonably achievable plan to cure such Default as promptly as is
reasonably practicable under the circumstances), Amgen, at its option, may terminate this License Agreement upon sixty (60) days prior written notice, unless such Representation Default is an unintentional Representation Default of the Warranty
Agreement and Amgen did not provide Notice of Default within one (1) year after the Effective Date. In addition, in the event of termination pursuant to such uncured Representation Default as provided in the foregoing sentence, Amgen will be
entitled to receive a refund of all money paid. 
  
 (c)
Amgen. In the event of a Representation Default or a Performance Default by Amgen that shall not have been cured within the period set forth in Section 12.4(a) after receipt of a Notice of Default (or Amgen shall not have presented a
reasonably achievable plan to cure such Default as promptly as is reasonably practicable under the circumstances), Nuvelo, at its option, may terminate this License Agreement upon sixty (60) days prior written notice. In addition, in the event of
termination pursuant to such uncured Representation Default as provided in the foregoing sentence, Nuvelo will be entitled to receive a refund of all money paid. 
  
 12.5 Bankruptcy. 
  
 (a) Amgen may terminate this License Agreement if, during the term of the Research Program, Nuvelo shall file in any court or agency pursuant to any
statute or regulation of any 

  

					
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state or country, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of
Nuvelo or of its assets, or if Nuvelo proposes a written agreement of composition or extension of its debts, or if Nuvelo shall be served with an involuntary petition in bankruptcy or seeking reorganization, liquidation, dissolution, winding-up
arrangement, composition or readjustment of its debts or any other relief under any bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect, or there shall have been issued a warrant of
attachment, execution, distraint or similar process against it, filed in any insolvency proceeding, and such petition shall not be dismissed within ninety (90) days after the filing thereof, or if Nuvelo shall propose or be a party to any
dissolution or liquidation, or if Nuvelo shall make an assignment for the benefit of creditors. 
  
 (b) All rights and licenses granted under or pursuant to this License Agreement by Amgen or Nuvelo are and shall otherwise be deemed to be for purposes of
Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that each Party shall retain and may fully exercise all of its rights and
elections under the U.S. Bankruptcy Code. The Parties further agree that, in event of the commencement of a bankruptcy proceeding by or against a bankrupt Party under the U.S. Bankruptcy Code, the other Party shall be entitled to a complete
duplicate of (or complete access to, as appropriate) any intellectual property and all embodiments of such intellectual property, and same, if not already in the other Party’s possession, shall be promptly delivered to the other Party (a) upon
any such commencement of a bankruptcy proceeding, upon the other Party’s written request therefor, unless the non-bankrupt Party (or a trustee on behalf of the non-bankrupt Party) elects to continue to perform all of its obligations under this
License Agreement or (b) if not delivered under (a) above, upon the rejection of this License Agreement by or on behalf of the non-bankrupt Party, upon written request therefor by the other Party. In the event of the commencement of a bankruptcy
proceeding by or against Nuvelo, Amgen shall have no responsibility for any product liability claims arising out of or relating to Licensed Products. 
  
 12.6 Effects of Termination. In addition to any other remedies which may be available at law or equity upon termination of this License Agreement
the rights and obligations of the Parties shall be as set forth in this Section 12.6. 
  
 (a) The following provisions shall remain in full force and effect after the expiration or termination of this License Agreement: Section 6.5 (solely with respect to any ongoing possession or exchange of the other
Party’s Confidential Information); Section 6.7; Article 7 (only with respect to accrued rights and obligations pursuant to Section 12.7); Article 9 (Confidentiality); Section 10.3(c), 10.5 (Disclaimers); Article 11 (Indemnification); Article 12
(Term and Termination); and Article 14 (General). 
  
 (b) The
Parties shall retain their respective ownership rights as set forth in Section 6.l(a) Amgen shall have the right, mutatis mutandis, to file, prosecute, defend and maintain Joint Patent Rights under Section 6.2(b) (with Nuvelo having the right
mutatis mutandis to comment with respects to the claims of Joint Patent Rights not relating to products which may in any way affect the rights conferred to Amgen to Develop, manufacture and Commercialize Licensed Products) and Product Trademarks
under Section 6.2(d), enforce Joint Patent Rights 

  

					
	 Amgen Contract #200200784
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under Section 6.3(b) (with Nuvelo having the right mutatis mutandis to assume any enforcement and/or defense action not taken by Amgen with respect to the
claims of Joint Patent Rights not relating to products which may in any way affect the rights conferred to Amgen to Develop, manufacture and Commercialize Licensed Products) and Product Trademarks under Section 6.3(c); and defend any action claiming
the infringement of any Third Party Patent Rights or any Third Party Trademark under Section 6.4(a) and to publish under Article 8. 
  
 (c) Nuvelo shall within thirty (30) days (other than with respect to Amgen Material and Manufacturing Information, in which case by no later than
completion of its obligations, if any under Section 12.6(g) below) destroy, or at Amgen’s request return, all Amgen Confidential Information, Amgen Know-How and Amgen Material and Manufacturing Information (other than with respect to
maintaining one (1) archival copy of Confidential Information related thereto for its legal files, for the sole purpose of determining its obligations hereunder) and shall provide Amgen with certification by an officer of Nuvelo that all such
materials have been returned to Amgen. 
  
 (d) Nuvelo shall
promptly transfer to Amgen ownership of all Regulatory Filings and Regulatory Approvals then in its name for all Licensed Products and shall notify the appropriate Regulatory Authorities and take any other action reasonably necessary to effect such
transfer of ownership. Nuvelo shall assign to Amgen Nuvelo’s right, title and interest in the Product Trademarks. 
  
 (e) Amgen shall have the right to use Nuvelo’s Trademarks in the selling of any existing inventory of Licensed Product(s) and to use Promotional
Materials it then has on hand, provided however, that Amgen promptly creates new Promotional Materials (which do not use Nuvelo’s corporate name and/or logo), with no obligation of accounting to Nuvelo. 
  
 (f) Nuvelo shall within thirty (30) days (other than with respect to Third
Party agreements entered into pursuant to Section 6.8, in which case by no later than completion of its obligations
if any under Section 12.6(g) below), at the request of Amgen, assign (if assignable under its terms) to Amgen all of Nuvelo’s rights and obligations under any then-existing Third Party licenses having a license grant limited specifically to
Licensed Products, regarding the making, having made, use, selling, offering to sell, and importing, exporting or otherwise transferring physical possession of or otherwise transferring title in or to Licensed Products and shall not (until receiving
notice of whether or not Amgen desires such an assignment) terminate or amend any such Third Party license. Otherwise, Nuvelo shall, at the request of Amgen, sublicense (if sublicensable under its terms) to Amgen all of Nuvelo’s rights and
obligations under any then-existing Third Party licenses regarding the making, having made, use, selling, offering to sell, and importing, exporting or otherwise transferring physical possession of or otherwise transferring title in or to Licensed
Products and shall not (until receiving notice of whether or not Amgen desires such a sublicense) terminate or amend any such Third Party license. Such assignment or sublicense shall be made for no additional consideration and be under the same
terms and conditions as the underlying agreement. 
  
 (g) In the
event Nuvelo shall (i) have been using a Third Party contract manufacturer(s) to manufacture Licensed Products, it shall only be obligated with respect to the manufacture and supply of Licensed Products under this License Agreement to assign its

  

					
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agreement with each such Third Party contract manufacturer to Amgen or (ii) have been manufacturing Licensed Products at its own facilities, it shall remain
responsible for supplying the reasonable amounts of Licensed Products for such reasonable period of time as to allow Amgen to obtain an alternate source of supply, if necessary, while ensuring an uninterrupted supply of Licensed Product of suitable
quality and quantity required for the Development and Commercialization to proceed. Once manufacturing responsibility has been successfully transferred, Nuvelo shall no longer be responsible for the manufacture and supply of Licensed Products to
Amgen for the Development and Commercialization of Licensed Products in the Territory and for making any decision with respect thereto and shall no longer be responsible for any obligations pursuant to Article 4. In the event Nuvelo is obligated to
continue to supply Licensed Products under this Section 12.6(g), Amgen shall use Commercially Reasonable Efforts to identify one or more viable Third Party manufacturers in order to transfer manufacturing operations as soon as commercially
reasonable. 
  
 (h) Amgen hereby agrees to Indemnify the Nuvelo
Indemnitees from and against any and all Losses resulting from any Third Party claims, suits, actions or demands resulting directly or indirectly from the Development, manufacture or Commercialization of Licensed Products (including a claim that a
Licensed Product caused death or personal injury of any land). To be eligible to be Indemnified as described above in this Section 12.6(h), the Nuvelo Indemnitees shall provide Amgen with prompt notice of any claim (with a description of the claim
and the nature and amount of any such Loss) giving rise to the indemnification obligation pursuant to this Section 12.6(h) and the exclusive ability to defend such claim (with the reasonable cooperation of Nuvelo Indemnitees); provided however, that
Amgen shall be relieved of its obligations only if any failure by the Nuvelo Indemnitee to deliver prompt notice shall have been prejudicial to its ability to defend such action. Nuvelo shall have the right to retain its own counsel, at its own
expense, if representation of the counsel of Amgen would be inappropriate due to actual or potential differing interests between the Parties. Neither Party shall settle or consent to the entry of any judgment with respect to any claim for Loss for
which indemnification is sought, without the prior written consent of the other Party (not to be unreasonably withheld). Amgen’s obligation to Indemnify the Nuvelo Indemnitees pursuant to this Section 12.6(h) shall not apply to the extent of
any Losses (i) that arise from the negligence or intentional misconduct of any Nuvelo Indemnitee (including but not limited to that arising from the Development of Collaboration Product by Nuvelo); (ii) that arise from Nuvelo’s breach of any
representation, warranty, covenant or obligation under this License Agreement; or (iii) for which Nuvelo is obligated to Indemnify the Amgen Indemnitees pursuant to Section 11.2 of this License Agreement. 
  
 (i) In the event that Amgen becomes entitled to terminate this License
Agreement at any time after the First Commercial Sale, the Parties will mutually agree upon the text of a press
release announcing the termination of this License Agreement. After a notice of termination has been delivered pursuant to any one of Sections 12.2 to 12.4, Nuvelo shall, in no event in excess of ninety (90) days after the delivery date of such
notice (other than with respect to obligations which explicitly exceed such 90-day period), conduct an orderly transition of rights and responsibilities from Nuvelo to Amgen or to a Third Party, as the case may be. Further, each Party shall
cooperate and assist the other Party to effect any such transition of rights and responsibilities in an orderly, reasonable and businesslike manner. Such assistance shall include, but not be limited to (i) making its personnel and other resources
reasonably available to Amgen, 

  

					
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as necessary and (ii) transferring copies of all relevant information, files or data containing Information and all Materials to Amgen. 
  
 (j) Except as expressly set forth in this Section 12.6, all other rights and
obligations shall terminate. 
  
 12.7 Accrued Rights.
Termination, relinquishment or expiration of any licenses under this License Agreement or of this License Agreement for any reason in accordance with this Article 12 shall he without prejudice to any rights which shall have accrued to the
benefit of either Party or any liability incurred by either Party prior to the effective date of such termination, relinquishment or expiration nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in
equity with respect to any breach of this License Agreement nor prejudice either Party’s right to obtain performance of any obligation. 
  
 ARTICLE 13 
 DISPUTE RESOLUTION

  
 13.1 Disputes. The Parties recognize that disputes
as to certain matters may from time to time arise during the term of this License Agreement which relate to either Party’s rights and/or obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the
resolution of disputes arising from, concerning or in any way relating to this License Agreement in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures
set forth in this Section 13.1 if and when a dispute arises under this License Agreement. The Parties shall undertake good faith efforts to resolve any such dispute in good faith. In the event the Parties shall be unable to resolve such dispute,
either Party may, by written notice to the other Party, have any dispute between the Parties referred to their respective executive officers designated below )or their designees or successors) for attempted resolution by good faith negotiations
within fifteen (15) days after such notice is received. Such designated officers are as follows: 
  

			
	 For Nuvelo:
	  	Nuvelo’s General Counsel
		
	 For Amgen:
	  	Amgen’s General Counsel

  
 If the designated officers are not
able to resolve such dispute within such fifteen (15) day period, the dispute will be referred to the respective Chief Executive Officers of each Party (or their respective Senior Vice President designee(s)). If the Chief Executive Officers (or
their designees) are unable to resolve such dispute within a further fifteen (15) day period, either Party may at any time thereafter pursue any legal or equitable remedy available to it. Notwithstanding the above, either Party shall be entitled at
all times and without delay to seek equitable relief. 
  
 13.2
Governing Law; Judicial Resolution. Resolution of all disputes arising out of or related to this License Agreement, or the performance, enforcement, breach or termination of this License Agreement and any remedies relating thereto, shall be
governed by and construed under the substantive laws of the State of California as applied to agreements executed and performed entirely in the State of California by residents of the State of California, without regard to conflicts of law rules.
Any dispute arising under this License Agreement shall be submitted to a state or federal court of competent jurisdiction in California; provided however, 

  

					
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	 	29	 	 

 
that if Amgen is the initiating Party in a dispute, its shall bring such suit in a state or federal court which has jurisdiction over Sunnyvale, California;
and if Nuvelo is the initiating Party in a dispute, its shall bring such suit in a state or federal court which has jurisdiction over Thousand Oaks, California. 
  

13.3 Patent and Trademark Dispute Resolution. Notwithstanding the above Section 13.2, as between the Parties, any dispute, controversy or claim
relating to the scope, validity, enforceability or infringement of any Amgen Patent Rights or Joint Patent Rights or of any Product Trademark shall be submitted to a court of competent jurisdiction in the Territory in which such Patent Rights or
Trademark rights were granted or arose. Notwithstanding the foregoing, any dispute, controversy or claim relating to the scope, validity, enforceability or infringement of any United States patent application or patent within Amgen Patent Rights or
Joint Patent Rights shall be submitted to a court of competent jurisdiction in the State of California. 
  
 ARTICLE 14 
 GENERAL 
  
 14.1 Force Majeure. Both Parties shall be excused from the performance
of their obligations under this License Agreement to the extent that such performance is prevented by Force Majeure and the nonperforming Party promptly provides notice of the prevention to the other Party. Such excuse shall be continued so long as
the condition constituting Force Majeure continues and the nonperforming Party uses reasonable efforts to remove the condition. When such circumstances arise, the Parties shall discuss what, if any, modification of the terms of this License
Agreement may be required in order to arrive at an equitable solution. 
  
 14.2 Notices. Any notice required or permitted to be given under this License Agreement shall be in writing, shall specifically refer to this License Agreement and shall be deemed to have been sufficiently given for all purposes if
mailed by first class certified or registered mail, postage prepaid, express delivery service or personally delivered or, if sent by facsimile, electronic transmission is confirmed. Unless otherwise notified in writing, the mailing addresses and fax
numbers for notice of the Parties shall be as described below. 
  

			
	 For Nuvelo:
	  	 Nuvelo, Inc.
 670 Almanor Ave.
 Sunnyvale, CA 94085-1710
 Phone: (408) 524-8100
 Facsimile: (408) 524-8415
 Attn: General Counsel

		
	 	  	With a copy to: Chief Financial Officer
		
	 For Amgen:
	  	 Amgen Inc.
 One Amgen Center Drive
 Thousand Oaks, CA 91320-1799
 Fax: (805) 499-6058
 Attention: Vice President, Licensing

		
	 	  	With a copy to: Corporate Secretary

  

					
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 14.3 Maintenance of Records. Each Party shall keep and maintain all records required by law or
regulation with respect to Licensed Products and shall make copies of such records available to the other Party upon request. 
  
 14.4 No Strict Construction. This License Agreement has been prepared jointly and shall not be strictly construed against either Party. 

 
 14.5 Assignment. Other than as set forth in Sections 2.3 or 14.6,
neither Party may assign or transfer this License Agreement or any lights or obligations hereunder without the prior written consent of the other, except that a Party may make such an assignment without the other Party’s consent to Affiliates
or to an entity that acquires all or substantially all of the business of such Party, whether in a merger, consolidation, reorganization, acquisition, sale or otherwise. This License Agreement shall be binding on the successors and assigns of the
assigning Party, and the name of a Party appearing herein shall be deemed to include the name(s) of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this License Agreement. Any assignment or
attempted assignment by either Party in violation of the terms of this Section 14.5 shall be null and void and of no legal effect. The assigning Party shall forward to the other Party a copy of those portions of each fully executed assignment
agreement which relate to the assumption of the rights and responsibilities of the assigning Party, within sixty (60) days of the execution of such assignment agreement. 
  
 14.6 Performance by Affiliates. Each of Amgen and Nuvelo acknowledge that obligations under this License Agreement
may be performed by Affiliates of Amgen and Nuvelo. Each of Amgen and Nuvelo guarantee performance of this License Agreement by its Affiliates, notwithstanding any assignment to Affiliates in accordance with Section 14.5 of this License Agreement.
Wherever in this License Agreement the Parties delegate responsibility to Affiliates or local operating entities, the Parties agree that such affiliates/entities may not make decisions inconsistent with this License Agreement, nor amend the terms of
this License Agreement or act contrary to its terms in any way. Nuvelo shall forward to Amgen a copy of each fully executed license or sublicense agreement, within sixty (60) days of the execution of each such license or sublicense agreement.

  
 14.7 Counterparts. This License Agreement may be
executed in two (2) or more counterparts, each. of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 14.8 Severability. If any one or more of the provisions of this License Agreement are held to be invalid or unenforceable by any court of competent
jurisdiction from which no appeal can be or is taken, such provisions shall be considered severed from this License Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a good faith effort to replace
any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering this License Agreement, as 

  

					
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evidenced by the terms of this License Agreement in accordance with Section 14.16, may be realized. 
  
 14.9 Headings. The headings for each Article and Section in this
License Agreement have been inserted for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section. Unless otherwise specified, (a) references in this License
Agreement to any Article, Section or Exhibit shall mean references to such Article, Section or Exhibit of this License Agreement, (b) references in any Section to any clause are references to such clause of such Section, and (c) references to any
agreement, instrument or other document in this License Agreement refer to such agreement, instrument or other document as originally executed or, if subsequently varied, replaced or supplemented from time-to-time, as so varied, replaced or
supplemented and in effect at the relevant time of reference thereto. 
  
 14.10 Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this License
Agreement. 
  
 14.11 Independent Contractors. The
relationship between Nuvelo and Amgen created by this License Agreement is one of independent contractors. This License Agreement does not create any agency, distributorship, employee-employer, partnership, joint venture or similar business
relationship between the parties. Neither Party is a legal representative of the other Party, and neither Party can assume or create any obligation, representation, warranty or guarantee (express or implied) on behalf of the other Party for any
purpose whatsoever. Each Party shall use its own discretion and shall have complete and authoritative control over its employees and the details of performing its obligations under this License Agreement. 
  
 14.12 No Benefit of Third Parties. The representations, warranties,
covenants and agreements set forth in this License Agreement are for the sole benefit of the Parties hereto and their successors and permitted assigns, and they shall not be construed as conferring any rights on any Third Parties. 
  
 14.13 Use of Name. Except as expressly provided in this License
Agreement, no Party hereto shall use, and no rights are granted in or to, the names or Trademarks (including the names “Amgen” and “Nuvelo”), physical likeness, employee names or owner symbol of the other Party for any purpose
(including, without limitation, private or public securities placements) without the prior written consent of the affected Party, such consent not to be unreasonably withheld or delayed so long as such use of name is limited to an objective
statement of fact rather than for endorsement purposes, provided, further that in the event that such use is legally required the required Party shall provide the affected Party with “reasonable opportunity to comment on such use and the
required Party shall reasonably consider the comments timely provided by such affected Party. Neither Party shall use any Trademark which either substantially resembles or is confusingly similar to, misleading or deceptive with respect to, or which
dilutes any of the other Party’s Trademarks in connection with the subject matter of this License Agreement. 
  

					
	 Amgen Contract #200200784
	 	32	 	 

 14.14 No Waiver. Any delay in enforcing a Party’s rights under this License Agreement
or any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this License Agreement, except with respect to an express written and signed waiver
relating to a particular matter for a particular period of time. 
  
 14.15 Export Requirements. It is understood and acknowledged that the transfer of certain commodities and technical data is subject to United States laws and regulations controlling the export of such commodities and technical
data, including all Export Administration Regulations of the United States Department of Commerce. Each Party hereby agrees and by entering into this License Agreement gives written assurance that it shall comply with all United States laws and
regulations controlling the export of commodities and technical data within Information and Materials, that it will be solely responsible for any violation of any such laws and regulations by itself, its Affiliates or its Sublicensees, and that it
will indemnify, defend and hold the other Party harmless from any liability in the event of any legal action of any nature occasioned by such violation, pursuant to Section 11.1 (in the case of Amgen) or Section 11.2 (in the case of Nuvelo).

  
 14.16 Entire Agreement; Amendment. This License
Agreement (including all Exhibits); that certain Warrant Purchase Agreement, dated January 8, 2002; and any rights and obligations surviving, by its terms, termination of that certain Collaboration Agreement (as defined herein on Page 1) set forth
the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto and supersedes and terminates all prior agreements and understandings
between the Parties. There are no covenants, promises, agreements, warranties, representations, conditions or understandings (either oral or written) between the Parties other than as are set forth herein and therein. This License Agreement may only
be modified or supplemented in a writing expressly stated for such purpose and signed by an authorized officer of each Party (i.e., it may not be modified by any purchase order, change order, acknowledgment, order acceptance, standard terms of sale,
invoice or the like). 
  
 14.17 Exhibits. All
Exhibits referenced herein and attached hereto are incorporated in this License Agreement by reference. 
  
 SIGNATURE PAGE FOLLOWS 
  

					
	 Amgen Contract #200200784
	 	33	 	 

 IN WITNESS WHEREOF, the Parties have executed this
License Agreement in duplicate originals by their duly authorized representatives as of the Effective Date. 
  
 

 
  

									
	 AMGEN INC.
	 	 	 	 NUVELO, INC.

					
	By:	 	

	 	 	 	By:	 	

					
	 Print Name:
	 	 Roger M. Perlmutter, M.D., Ph.D.
	 	 	 	 Print Name:
	 	 Ted W. Love

					
	 Title:
	 	 Executive Vice President,
	 	 	 	 Title:
	 	 Pres & CEO

	 	 	 Research and Development
	 	 	 	 	 	 

  

					
	 Amgen Contract #200200784
	 	34	 	 

  
 EXHIBIT A 

 
 Defined Terms 
  
 A.1 “Affiliate” shall mean, except as provided below, an
individual, a partnership, a joint venture, a corporation, a trust, an estate, an unincorporated organization, a government or any department or agency thereof, or any other entity or any combination of the aforementioned entities that, directly or
indirectly, through one or more intermediaries, controls, is controlled by or is under common control with Amgen or Nuvelo. For purposes of this definition, “control” shall mean the possession, direct or indirect, of the power to cause the
direction of the management and policies of a Party, whether through ownership of more than fifty percent (50%) of the voting securities of such Party, by contract or otherwise. 
  
 A.2 “Alfimeprase” shall mean the polypeptide having the amino acid sequence which is set forth in Exhibit
B. 
  
 A.3 “Amgen Know-How” shall mean all
Information and Material Controlled by Amgen prior to or on the Effective Date necessary to Develop, manufacture or Commercialize Licensed Products, including but not limited to the following information: (1) information disclosed in the IND for
Alfimeprase as of the Effective Date; (2) information disclosed as of the Effective Date in any IND supplements for Alfimeprase; (3) all Amgen-sponsored collaborator data and results (subject to any contractual confidentiality obligations of Amgen
to Third Parties regarding such results); (4) any regulatory data which Amgen provides to Nuvelo; (5) sequence information of other Licensed Products and information regarding their activity; and (6) such information which Amgen expressly designates
in writing it intends to include as Amgen Know-How under this License Agreement; provided however, that Amgen Know-How shall exclude Amgen Material and Manufacturing Information. 
  
 A.4 “Amgen Material and Manufacturing Information” shall mean the most current version of (i) the Materials
(other than Licensed Products); and (ii) the Information pertaining to the manufacture of Licensed Products including, without limitation, Information contained in the CMC section of any applicable Regulatory Filings or Information regarding
Amgen’s manufacturing facility; and (iii) Information regarding the Materials. 
  
 A.5 “Amgen Patent Rights” shall mean Amgen’s rights in (a) those Patent Rights Controlled by Amgen on the Effective Date with respect to the Licensed Products and listed in Exhibit C and (b) all
Patent Rights Controlled by Amgen prior to or during the term of the License Agreement that claim Amgen Know-How. 
  
 A.6 “Amgen Technology” “shall mean all Amgen Patent Rights and Amgen Know-How and Amgen’s interest in the Joint Patent Rights
and Joint Know-How. 
  
 A.7 “Asian Countries”
shall mean one or more of the following: Bangladesh, Cambodia, India, Indonesia, Japan, Laos, Malaysia, Myanmar, Nepal, North Korea, Pakistan, Peoples Republic of China (including Hong Kong and Macao), Philippines, Singapore, South Korea, Sri
Lanka, Taiwan, Thailand and Vietnam. 
  

					
	 Amgen Contract #200200784
	 	35	 	 

 A.8 “Calendar Quarter” shall mean the respective periods of three (3) consecutive
calendar months ending on either March 31, June 30, September 30, or December 31 for so long as this License Agreement is in effect. 
  
 A.9 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.

  
 A.10 “Commercialize” or
“Commercialization” shall mean all activities relating to the manufacturing, promotion, and other pre-launch and post-launch marketing and sale activities of Licensed Products and shall include without limitation, Phase IV clinical
trials (as defined in the Collaboration Agreement) or equivalent clinical trials conducted following Regulatory Approval to market such Licensed Product. 
  
 A.11 “Commercially Reasonable Efforts” shall mean the level of efforts and resources required to Develop, manufacture or Commercialize a
Licensed Product in a sustained manner consistent with the efforts a similarly situated biopharmaceutical company would typically devote to a product of similar market potential, profit potential or strategic value resulting from its own research
efforts, based on conditions then prevailing. Commercially Reasonable Efforts shall be determined on a country-by-country (each country including its territories) basis for a particular Licensed Product, and it is anticipated that the level of
effort will change over time reflecting changes in the status of the Licensed Product and the country (including its territories) involved. 
  
 A.12 “Competitive Product” shall mean any pharmaceutical product, other than a Licensed Product, that contains (a) Alfimeprase or (b) any
fibrinolytic metalloproteinase product which has, incorporates or contains the following properties: (i) is directly fibrinolytic, (ii) does not require the involvement of the plasminogen system, and (iii) is complexed by alpha-2 macroglobulin.

  
 A.13 “Confidential Information” shall mean
all Information received by either Party from the other Party pursuant to this License Agreement, other than that portion of such Information which: 
  

	 	(a)	is publicly disclosed by the disclosing Party, either before or after it becomes known to the receiving Party; 

  

	 	(b)	was known to the receiving Party, without obligation to keep it confidential, prior to when it was received from the disclosing Party; 

  

	 	(c)	is subsequently disclosed to the receiving Party, by a Third Party lawfully in possession thereof without obligation to keep it confidential; 

  

	 	(d)	has been publicly disclosed other than by the disclosing Party and without breach of an obligation of confidentiality with respect thereto; or 

  

	 	(e)	has been independently developed by the receiving Party without the aid, application or use of Confidential Information, as demonstrated by competent written proof.

  

					
	 Amgen Contract #200200784
	 	36	 	 

 A.14 “Control” or “Controlled” shall mean possession of the ability to grant a
license or sublicense as provided for herein under such intellectual property right without violating the terms of any agreement or other arrangement with any Third Party. 
  
 A.15 “Development” or “Develop” shall mean all research, pre-clinical, process development/manufacturing and clinical activities undertaken for a Licensed Product required to successfully complete
Pivotal Trials in the Territory. For the avoidance of doubt, these activities shall include clinical drug development activities, including among other things: test method development and stability testing, toxicology, formulation, statistical
analysis and report writing, product approval and registration, and regulatory affairs related to the foregoing. When used as a verb, “Develop” means to engage in Development. 
  
 A.16 “Dollar” shall mean a United States dollar, and “$” shall be interpreted accordingly.

  
 A.17 “Drug Approval Application” shall mean
an application for Regulatory Approval required before commercial sale or use of a Licensed Product as a drug or to treat a particular indication in a regulatory jurisdiction, including without limitation: (a) (i) a Biologics License Application
(BLA) pursuant to 21 C.F.R. 601.2, submitted to the FDA, or any successor application or procedure and (ii) any counterpart of a U.S. BLA in another country in the Territory; and (b) all supplements and amendments, including supplemental BLAs (and
any foreign counterparts), that may be filed (e.g., to expand the label) with respect to the foregoing. 
  
 A.18 “FDA” shall mean the United States Food and Drug Administration, or any successor thereto. 
  
 A.19 “First Commercial Sale” shall mean the initial transfer by Nuvelo or its Affiliates or
Sublicensees under this License Agreement of a Licensed Product to a non-Sublicensee Third Party in exchange for cash or some equivalent to which value can be assigned for the purpose of determining Net Sales, following Regulatory Approval to market
such Licensed Product. 
  
 A.20 “Force Majeure” shall mean any occurrence beyond the reasonable control of a Party that prevents or
substantially interferes with the performance by such Party of any of its obligations hereunder, if such occurs by reason of any act of God, flood, fire, explosion, earthquake, breakdown of plant, shortage of critical equipment, loss or
unavailability of manufacturing facilities or material, strike, lockout, labor dispute, casualty or accident, or war, revolution, civil commotion, acts of public enemies, blockage or embargo, or any injunction, law, order, proclamation, regulation,
ordinance, demand or requirement of any government or of any subdivision, authority or representative of any such
government, inability to produce or use materials, labor, equipment, transportation, or energy sufficient to meet manufacturing needs without the necessity of allocation, or any other cause whatsoever, whether similar or dissimilar to those above
enumerated, beyond the reasonable control of such Party, if and only if the Party affected shall have used reasonable efforts to avoid such occurrence and to remedy it promptly if it shall have occurred. 
  
 A.21 “GAAP” shall mean United States generally accepted accounting principles.

  

					
	 Amgen Contract #200200784
	 	37	 	 

 A.22 “IND” shall mean an Investigational New Drug application. 
  
 A.23 “Information” shall mean all tangible and intangible
techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, conclusions, skill, experience, test data and results (including pharmacological, toxicological and clinical test data and
results), analytical and quality control data, results or descriptions, software and algorithms. 
  
 A.24 “Joint Know-How” shall mean Information and Materials characterized, conceived, developed, derived, generated or identified jointly
by employees of or consultants to Nuvelo and employees of or consultants to Amgen from the Effective Date through the Term. 
  
 A.25 “Joint Patent Rights” shall mean all Patent Rights that claim or disclose Joint Know-How. 
  
 A.26 “Licensed Product(s)” shall mean (a) Alfimeprase or (b)
any fibrinolytic metalloproteinase product which is owned or Controlled by Amgen and/or Nuvelo and which has, incorporates or contains the following properties: (i) is directly fibrinolytic, (ii) does not require the involvement of the plasminogen
system, and (iii) is complexed by alpha-2 macroglobulin. 
  
 A.27 “Losses” shall mean liabilities, costs, fees, expenses and/or losses, including without limitation reasonable legal costs and expenses and attorneys’ fees for outside counsel. 
  
 A.28 “Materials” shall mean certain biological materials
including, but not limited to, Licensed Products, screens, animal models, cell lines, cells, nucleic acids, receptors and reagents. 
  
 A.29 “Net Sales” shall mean all revenues recognized in accordance with GAAP from the sale or other disposition of Licensed Products by
Nuvelo or its Affiliates or Sublicensees to a non-Sublicensee Third Party after deducting returns and allowances (actually paid or allowed) including, but not limited to, prompt payment and volume discounts, price reductions, including Medicaid and
similar types of rebates, chargebacks from wholesalers of Licensed Products (whether in cash or trade), freight, shipping, packing, insurance, rebates, and sales and other taxes based on sales prices when included in gross sales, but not including
taxes when assessed on income derived from such sales. Amounts received by Nuvelo or its Affiliates for the sale of Licensed Products among Nuvelo or its Affiliates for resale or for transfer of Licensed Products to a Sublicensee for resale shall
not be included in the computation of Net Sales hereunder. 
  
 A.30 “Patent Rights” shall mean (i) a pending application for a patent, including without limitation any provisional, converted provisional, continued prosecution application, continuation, divisional or
continuation-in-part thereof; or (ii) an issued, unexpired patent (with the term “patent” being deemed to encompass, without limitation, an inventor’s certificate) which has not been held invalid or unenforceable by a court of
competent jurisdiction from which no appeal can be taken or has been taken within the required time period, including without limitation any substitution, extension, registration, confirmation, reissue, re-examination, renewal or any like filing
thereof. 
  

					
	 Amgen Contract #200200784
	 	38	 	 

 A.31 “Pivotal Trial(s)” shall mean those clinical trials on sufficient numbers of
patients that, if the defined end-points are met, are designed (and agreed to by the FDA, or other Regulatory Authorities in the Territory based upon existing data in the same patient population) as of the start of the trial to definitively
establish that a drug is safe and efficacious for its intended use, and to define warnings, precautions and adverse reactions that are associated with the drug in the dosage range to be prescribed, and provide pivotal data supporting Regulatory
Approval of such drug or label expansion of such drug and that satisfy the requirements of 21 CFR 321.21(c) (or its successor regulation), or an equivalent foreign clinical trial. 
  
 A.32 “Product Trademark” shall mean any trademarks and trade names (and trademark applications (whether or
not registered) together with all goodwill associated therewith, and any renewals, extensions or modifications thereto in the Territory), trade dress and packaging which (a) are owned by or Controlled by either Party and (b) are applied to or used
with Licensed Products or any Promotional Materials. The Parties hereby acknowledge that as of the Effective Date no such Product Trademarks are owned or have been developed by Amgen. 
  
 A.33 “Promotional Materials” shall mean all sales representative training materials and all written,
printed, graphic, electronic, audio or video matter including, but not limited to, journal advertisements, sales visual aids, direct mail, direct-to-consumer advertising, Internet postings, broadcast advertisements, and sales reminder aids (e.g.,
scratch pads, pens and other such items) intended for use or used by a Party in connection with any Promotion (as defined herein) or Detailing (as defined in the Collaboration Agreement) of a Licensed Product, except for (i) the Regulatory
Authority-approved full prescribing information for a Licensed Product, including any required patient information and (ii) all labels and other written, printed or graphic matter upon any container, wrapper, or any package insert or outsert
utilized with or for a Licensed Product. 
  
 A.34
“Regulatory Approval” shall mean any approvals (including supplements, amendments, pre- and post-approvals and price approvals), licenses, registrations or authorizations (including designations of a Licensed Product as an “Orphan
Product” under the Orphan Drug Act) of any national, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, including the FDA or equivalent foreign Regulatory
Authorities, necessary for the distribution, use or sale of a Licensed Product in a regulatory jurisdiction. Regulatory Approval shall not include any site license for an Amgen manufacturing facility. 
  
 A.35 “Regulatory Authority” shall mean the FDA or any
counterpart of the FDA outside the United States. 
  
 A.36
“Regulatory Filings” shall mean collectively, INDs, BLAs, establishment license applications (ELAs) and drug master files (DMFs), applications for designation of a Licensed Product as an “Orphan Product” under the Orphan Drug
Act, or any other similar filings (including any foreign equivalents and further including any related correspondence and discussions), and all data contained therein, as may be required by the FDA or equivalent foreign Regulatory Authorities for
the Development, manufacture or Commercialization of a Licensed Product. 
  

					
	 Amgen Contract #200200784
	 	39	 	 

 A.37 “Royalty” or “Royalties” shall mean those amounts payable as royalties by
Nuvelo to Amgen pursuant to Section 5.2 of this License Agreement. 
  
 A.38 “Sublicensee” shall mean a Third Party to whom Nuvelo shall have granted a license or sublicense under Nuvelo’s rights pursuant to Section. 2.3 to make, have made, use, sell, offer for sale, or import a Licensed
Product in one or more countries in the Territory. Solely for the purpose of any compensation payable to Amgen hereunder, “Sublicensee” shall include a Third Party to whom Nuvelo or another Sublicensee shall have granted the right to
distribute one or more Licensed Product(s), wherein such distributor pays to Nuvelo or such another Sublicensee a royalty based upon the revenues received by the distributor for the sale of such Licensed Product(s), but shall not include (i) any
Third Party who receives an implied license to use a unit of Licensed Product(s), arising by operation of law, as a consequence of the purchase of said unit of Licensed Product(s); or (ii) any Third Party where Nuvelo or such another Sublicensee
merely sells such Licensed Product(s) at a fixed transfer price to such distributor for resale by such distributor and Nuvelo is not compensated based on the resale price of such Licensed Product by such distributor. 
  
 A.39 “Term” shall have the meaning set forth in Section
12.1. 
  
 A.40 “Territory” shall mean the world.

  
 A.41 “Third Party” shall mean any individual,
a partnership, a joint venture, a corporation, a trust, an estate, an unincorporated organization, a government or any department or agency thereof, or any other than Amgen or Nuvelo or an Affiliate of either of them. 
  
 A.42 “Third Party Payment” shall mean all upfront payments,
milestone payments, license fees, royalties or other payments, payable to any Third Party under any Third Party license agreement deemed necessary or useful to make, have made, use, sell, offer to sell, and import, export or otherwise transfer
physical possession of or otherwise transfer title in a Licensed Product. 
  
 A.43 “Trademark” shall mean any and all corporate names, trade names, service marks, logos or trademarks and trademark applications (whether or not registered) together with all good will associated
therewith, and any renewals, extensions or modifications thereto either filed or used. 
  
 A.44 “Valid Claim” shall mean (i) an unexpired claim of an issued patent within the Amgen Patent Rights and Joint Patent Rights that has not been found to be unpatentable, invalid or unenforceable by
a court or other authority in the country of the patent, from which decision no appeal is taken or can be taken; or (ii) a claim of a pending application within the Amgen Patent Rights and Joint Patent Rights, wherein such pending application claims
a first priority no more than five (5) years prior to the date upon which pendency is determined. 
  

					
	 Amgen Contract #200200784
	 	40	 	 

  
 EXHIBIT B 

 
 PROTEIN SEQUENCE OF ALFIMEPRASE 
  

			
	 RN
	  	259074-76-5        ZREGISTRY
	 CN
	  	3-203-Fibrolase    [3-serine]    (Agkistrodon contortrix contortrix recombinant)
	 	  	(9CI)        (CA INDEX NAME)
	 FS
	  	PROTEIN SEQUENCE
	 SQL
	  	201
	 NTE
	  	 

  

							
	 type

	 	 location

	 	 description

	 bridge
	 	Cys-116	 	- Cys-196	 	disulfide bridge
	 bridge
	 	Cys-156	 	- Cys-180	 	disulfide bridge
	 bridge
	 	Cys-158	 	- Cys-163	 	disulfide bridge

  

													
	 SEQ
	  	1	  	SFPQRYVQLV	  	IV&DHRMNTK	  	YNGDSDKIRQ	  	WVHQIVNTIN	  	EIYRPLNIQF
	 	  	51	  	TLVGLEIWSN	  	QDLITVTSVS	  	HDTLASFGNW	  	RETDLLRRQR	  	HDNAQLLTAI
	 	  	101	  	DFDGDTVGLA	  	YVGGMCQLKH	  	STGVIQDHSA	  	INLLVALTMA	  	HELGHNLGMN
	 	  	151	  	HDGNQCHCGA	  	NSCVMAAMLS	  	DQPSKLFSDC	  	SKKDYQTFLT	  	VNNPQCILNK
	 	  	201	  	P	  	 	  	 	  	 	  	 

  

					
	 SEQ.3
	  	1	  	Ser-Phe-Pro-Gln-Arg-Tyr-Val-Gln-Leu-Val-
	 	  	11	  	Ile-Val-Ala-Asp-His-Arg-Met-Asn-Thr-Lys-
	 	  	21	  	Tyr-Asn-Gly-Asp-Ser-Asp-Lys-Ile-Arg-Gln-
	 	  	31	  	Trp-Val-His-Gln-Ile-Val-Asn-Thr-Ile-Asn-
	 	  	41	  	Glu-Ile-Tyr-Arg-Pro-Leu-Asn-Ile-Gln-Phe-
	 	  	51	  	Thr-Leu-Val-Gly-Leu-Glu-Ile-Trp-Ser-Asn-
	 	  	61	  	Gln-Asp-Leu-Ile-Thr-Val-Thr-Ser-Val-Ser-
	 	  	71	  	His-Asp-Thr-Leu-Ala-Ser-Phe-Gly-Asn-Trp-
	 	  	81	  	Arg-Glu-Thr-Asp-Leu-Leu-Arg-Arg-Gln-Arg-
	 	  	91	  	His-Asp-Asn-Ala-Gln-Leu-Leu-Thr-Ala-Ile-
	 	  	101	  	Asp-Phe-Asp-Gly-Asp-Thr-Val-Gly-Leu-Ala-
	 	  	111	  	Tyr-Val-Gly-Gly-Met-Cys-Gln-Leu-Lys-His-
	 	  	121	  	Ser-Thr-Gly-Val-Ile-Gln-Asp-His-Ser-Ala-
	 	  	131	  	Ile-Asn-Leu-Leu-Val-Ala-Leu-Thr-Met-Ala-
	 	  	141	  	His-Glu-Leu-Gly-His-Asn-Leu-Gly-Met-Asn-
	 	  	151	  	His-Asp-Gly-Asn-Gln-Cys-His-Cys-Gly-Ala-
	 	  	161	  	Asn-Ser-Cys-Val-Met-Ala-Ala-Met-Leu-Ser-
	 	  	171	  	Asp-Gln-Pro-Ser-Lys-Leu-Phe-Ser-Asp-Cys-
	 	  	181	  	Ser-Lys-Lys-Asp-Tyr-Gln-Thr-Phe-Leu-Thr-
	 	  	191	  	Val-Asn-Asn-Pro-Gln-Cys-Ile-Leu-Asn-Lys-
	 	  	201	  	Pro

  

					
	 Amgen Contract #200200784
	 	41	 	 

  
 EXHIBIT C 

 
 AMGEN PATENT RIGHTS AS OF THE EFFECTIVE DATE 
  
 PATENTS 
  

					
	 COUNTRY

	 	 TITLE

	 	 PATENT #

	ALBANIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	AUSTRIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	BELGIUM	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	BULGARIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	CYPRUS	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	DENMARK	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	EURASIAN PATENT OFFICE	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	4627
	EUROPEAN PATENT OFFICE	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	FINLAND	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	FRANCE	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	GERMANY	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	GREAT BRITAIN	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	GREECE	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	IRELAND	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	ITALY	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	LATVIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	LITHUANIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	LUXEMBOURG	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	MACEDONIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	MONACO	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	NETHERLANDS	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	NEW ZEALAND	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	518007
	PORTUGAL	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	ROMANIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	SLOVENIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	SOUTH AFRICA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	02002/2400
	SPAIN	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	SWEDEN	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	SWITZERLAND	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	1220685
	UNITED STATES	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	6440414

  

					
	 Amgen Contract #200200784
	 	42	 	 

 PATENTS 
  

					
	 COUNTRY

	 	 TITLE

	 	 PATENT #

	UNITED STATES	 	METHOD FOR LOCALIZED
ADMINISTRATION OF FIBRINOLYTIC
METALLOPROTEINASES	 	6455269
	UNITED STATES	 	DNA MOLECULES ENCODING
FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	6617145
	AUSTRALIA	 	FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	767827
	NEW ZEALAND	 	FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	517951
	SINGAPORE	 	FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	87654
	SOUTH AFRICA	 	FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	02002/2206
	UNITED STATES	 	FIBRINOLYTICALLY ACTIVE
POLYPEPTIDE	 	6261820
	UNITED STATES	 	SIZE ENHANCED FIBRINOLYTIC
ENZYMES; LIMITATIONS OF PLASMA
INACTIVATION	 	6214594

  
 PATENT
APPLICATIONS 
  

					
	 COUNTRY

	 	 TITLE

	 	 PATENT APPLICATlONS#

	UNITED STATES	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	10/226408
	PCT	 	 METHOD FOR TREATMENT OF
 INDWELLING CATHETER OCCULSION
 USING FIBRINOLYTIC
	 	US03/19702
	UNITED STATES	 	 METHOD FOR TREATMENT OF
 INDWELLING CATHETER OCCULSION
 USING FIBRINOLYTIC
	 	10/177916
	AUSTRALIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	77430/00
	BRAZIL	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	PI00014420-7
	CANADA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	2385966
	CHINA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	816379
	CZECH REPUBLIC	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	02002-1033
	HONG KONG	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	3100282.4
	HUNGARY	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	00P0202554
	ISRAEL	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	148842
	JAPAN	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	2001527816
	MEXICO	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	3197
	NORWAY	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	20021500
	PCT	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	US00/27022
	POLAND	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	P-355016
	SERBIA AND MONTENEGRO	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	P-233/02
	SINGAPORE	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	2002017465
	SLOVAKIA	 	 PHARMACEUTICAL COMPOSITIONS
 OF FIBRINOLYTIC
AGENT
	 	42402002

  

					
	 Amgen Contract #200200784
	 	43	 	 

 PATENT APPLICATIONS 
  

					
	 COUNTRY

	 	 TITLE

	 	 PATENT APPLICATIONS#

			
	SOUTH KOREA	 	PHARMACEUTICAL COMPOSITIONS OF FIBRINOLYTIC AGENT	 	7004128/02
			
	AUSTRALIA	 	PHARMACEUTICAL COMPOSITIONS OF FIBRINOLYTIC AGENT	 	2004201694
			
	EUROPEAN PATENT OFFICE	 	PHARMACEUTICAL COMPOSITIONS OF FIBRINOLYTIC AGENT	 	4007657.2
			
	NEW ZEALAND	 	PHARMACEUTICAL COMPOSITIONS OF FIBRINOLYTIC AGENT	 	530959
			
	SINGAPORE	 	PHARMACEUTICAL COMPOSITIONS OF FIBRINOLYTIC AGENT	 	2004005427
			
	AUSTRALIA	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	0024346/01
			
	CANADA	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	2394613
			
	EUROPEAN PATENT OFFICE	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	988099.8
			
	HONG KONG	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	3101990.5
			
	JAPAN	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	2001544901
			
	MEXICO	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	2002006024
			
	PCT	 	METHOD FOR LOCALIZED ADMINISTRATION OF FIBRINOLYTIC METALLOPROTEINASES	 	US00/34143
			
	UNITED STATES	 	METHODS FOR THE TREATMENT OF THROMBOSIS	 	10/441667
			
	BRAZIL	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	00014414-2
			
	BULGARIA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	106578
			
	CANADA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	2386185
			
	CHINA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	816321.9
			
	CZECH REPUBLIC	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	02002-1034
			
	EURASIAN PATENT OFFICE	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	200200410
			
	EUROPEAN PATENT OFFICE	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	965554.9
			
	HONG KONG	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	3100667.9
			
	HUNGARY	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	00P0202650
			
	ISRAEL	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	148787
			
	JAPAN	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	2001528597
			
	MEXICO	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	2002003126
			
	NORWAY	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	20021501
			
	PCT	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	US00/27029
			
	POLAND	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	00P-355017
			
	SERBIA AND MONTENEGRO	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	00P-225/02

  

					
	 Amgen Contract #200200784
	 	44	 	 

 PATENT APPLICATIONS 
  

					
	 COUNTRY

	 	 TITLE

	 	 PATENT APPLICATIONS#

			
	SLOVAKIA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	PV4232002S
			
	SOUTH KOREA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	7004225
			
	AUSTRALIA	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	2004200775
			
	EURASIAN PATENT OFFICE	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	1
			
	MEXICO	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	1
			
	NEW ZEALAND	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	530114
			
	SERBIA AND MONTENEGRO	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	00P-596/04
			
	SINGAPORE	 	FIBRINOLYTICALLY ACTIVE POLYPEPTIDE	 	2473790
			
	PCT	 	SIZE ENHANCED FIBRINOLYTIC ENZYMES; LIMITATION OF PLASMA INACTIVATION	 	US99/10108

  

					
	 Amgen Contract #200200784
	 	45	 	 

  
 EXHIBIT D 

 
 MANUFACTURING TRANSFER OUTLINE 
  
 Summary 
  
 The Tech Transfer of the alfimeprase will occur on two fronts. First, the API process and fill/finish process will be transferred to Nuvelo
and then Nuvelo will be responsible for transferring the process to the contract manufacturer, Avecia and the fill/finish contractor of Nuvelo’s choice, which shall be either
[*]            or  [*]        Amgen will provide documentation currently in its possession necessary for the transfer of manufacturing and
to support Nuvelo’s BLA filing to the extent relating to Amgen’s manufacturing prior of Licensed Product prior to the Effective Date of the License Agreement. Activities associated with transfers of analytical methods will be similar for
both API and DP. All transfers would begin as soon as possible after entering into the License Agreement. Amgen would commit [*]    [*] FTEs for a one-year period to performing the manufacturing technology transfer, one in
Process Development, one in Drag Product Process Development and one in Quality/Analytics. Amgen’s manufacturing technology transfer responsibilities will be complete upon Avecia’s successful completion of the shakedown runs. 

 
 Transfer of API Process: 
  

	Time [*] 	LAUNCH (  [*]        ) 

  

	 	•	 	Meeting with CMO 

  

	 	•	 	Review and finalize process fit 

  

	 	•	 	Review equipment specs and confirm for ordering 

  

	 	•	 	Prepare activity plan (includes lab-scale, large-scale centrifugation runs, validation, etc.) 

  

	 	•	 	Discuss analytical method transfer, and finalize assay validation responsibilities 

  

	 	•	 	Outline timeline and activities for harvest development 

  

	 	•	 	Discuss process characterization plan 

  

	 	•	 	Discuss training plan for CMO operators 

  

	 	•	 	Finalize communication process, points of contact, etc. (between CMO manufacturing operators, CMO tech transfer leads and ATO) 

  

	 	•	 	Delivery of Technology Transfer Package 

  

	Time [*] 	EQUIPMENT and RAW MATERIALS (  [*]        ) 

  

	 	•	 	Avecia/Nuvelo to order chromatography columns 

  

	 	•	 	Avecia/Nuvelo to order depth filtration filter housings (6 housings) 

  

	 	•	 	Avecia/Nuvelo to order delipid filtration filter housing (1 housings) 

  

	 	•	 	Avecia/Nuvelo to order Stedim jacketed pallet tank for 1000-L bags, and confirm availability of sterile bags (possible custom bag design with 1” tubing – order)

  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 46 

	 	•	 	Avecia/Nuvelo to order membrane holders for existing CMO ultrafiltration skids 

  

	 	•	 	Avecia/Nuvelo to order trace heating elements for media filtration lines 

  

	 	•	 	Check on availability of all raw materials, and Avecia/Nuvelo to begin ordering 

  
 EQUIPMENT MODIFICATION / COMMISSIONING ( [ * ]      ) 
  

	 	•	 	Avecia/Nuvelo to test and evaluate ammonia gas system in fermentation suite 

  

	 	•	 	Avecia/Nuvelo to modify bioreactor controls for mass-flow (for lab-scale and production scale) 

  

	 	•	 	Discuss and Avecia/Nuvelo to complete various piping modifications to support process 

  

	 	•	 	Discuss and Avecia/Nuvelo to prepare microfiltration skid as possible alternative to centrifugation 

  
 VALIDATION PLAN (  [ * ]    ) 
  

	 	•	 	Avecia/Nuvelo to Create validation Master Plan for conformance lots 

  
 PROCESS CHARACTERIATION ( [ * ]    ) 
  

	 	•	 	Avecia/Nuvelo to Plan for characterization studies 

  

	Time [*] 	LAB SCALE DEMONSTRATION RUNS (  [*]    ) 

  

	 	•	 	Avecia to create batch records for lab scale runs (both upstream and downstream) 

  

	 	•	 	Avecia to perform a minimum of two runs 

  

	 	•	 	Avecia collect and review lab scale data 

  

	 	•	 	Avecia to develop and test microfiltration strategy for harvest (as alternative to centrifugation) 

  

	 	•	 	Avecia to test and finalize analytical assays for process 

  
 PROCESS CHARACTERIATION ( [ * ]      ) 
  

	 	•	 	Avecia to perform characterization studies 

  
 CENTRIFUGE CHARACTERIZATION ( [ * ]      ) 
  

	 	•	 	Avecia to write, review and finalize batch records 

  

	 	•	 	Avecia to perform two large scale centrifugation runs 

  

	 	•	 	Avecia to collect and review data 

  

	 	•	 	Avecia to decide on final clarification strategy for harvest (microfiltration versus centrifugation) 

  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 47 

	Time [	* ]  WRITE MANUFACTURING PROCEDURES ( [ * ]        ) 

  

	 	•	 	Avecia to create, review and finalize equipment validation procedures 

  

	 	•	 	Avecia to create, review and finalize batch records/manufacturing procedures for “Shake-down” runs 

  

	 	•	 	Avecia to create process validation protocols 

  

	Time [	* ]  EQUIPMENT ( [ * ]  ) 

  

	 	•	 	Avecia to perform Factory Acceptance Tests (FAT) 

  

	 	•	 	Avecia to receive all equipment 

  

	 	•	 	Avecia to perform IQ/OQ/ PQ equipment validation 

  

	Time [	* ]  “SHAKE-DOWN” (ENGINEERING) RUNS (  [ * ]    ) 

  

	 	•	 	Avecia to perform two runs at large scale to test equipment, process, analytical assays, etc. 

  

	 	•	 	Avecia to collect and review data (compare to clinical GMP data) 

  

	 	•	 	Avecia to troubleshoot issues, and finalize logistics and process for preparation of conformance lots (including revision of batch records and manufacturing procedures)

  

	 	•	 	Avecia to finalize acceptance criteria for conformance lots 

  

	Time [	* ]  CONFORMANCE LOTS (  [ * ]    ) 

  

	 	•	 	Avecia to perform five successful consecutive conformance lots 

  

	 	•	 	Avecia to perform “blank” run following the five conformance lots 

  

	 	•	 	Avecia to collect and review data 

  

	 	•	 	Avecia to complete process validation protocols 

  
 [ * ] 
  
 Transfer of Drug Product (Fill/Finish) 
  
 It was anticipated that a contract manufacturer would be selected [ * ] 
  

	•	 	Tech Transfer items 

  

	 	•	 	Amgen to prepare technical package for CM site 

  

	 	•	 	Nuvelo to ID and procure equipment for CM site (tanks, change parts, raw materials, components, freezers if needed, etc) 

  

	 	•	 	CM to conduct tank characterization 

  

	 	•	 	CM/Nuvelo to Review Batch record/MP/SOP draft 

  

	[ * ] 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities and Exchange Act of 1934, as amended. 

  

 48 

	 	•	 	Nuvelo to Develop validation strategy with CM site 

  

	 	•	 	Nuvelo to work with CM on validation support of vial wash and sterilization, stopper processing, etc 

  

	 	•	 	CM to support WFI runs 

  

	 	•	 	Nuvelo to support shakedown engineering runs 

  

	 	•	 	CM to complete Lyo robustness studies (full scale at CM) 

  

	 	•	 	CM to complete any scale-down work needed based on site parameters 

  

	 	•	 	Nuvelo to support Validation runs 

  

	•	 	Nuvelo to partner with Contract Mfg on site selection for secondary packaging (may be a post-conformance activity) 

  
 Transfer of Analytical Methods: 
  

	 	•	 	Amgen to transfer documentation to contract manufacturer 

  

	 	•	 	Amgen to review Method Transfer Protocols (MTP) with CM and Nuvelo 

  

	 	•	 	Amgen to provide support for method troubleshooting 

  

	 	•	 	Nuvelo and Amgen to review data from CM on MTP execution 

  

	 	•	 	Nuvelo to review draft of Method Transfer Reports with CM and Amgen 

  

	 	•	 	Amgen to transfer of stability samples to CM 

  

	 	•	 	Amgen to transfer of stability database to CM 

  

					
	 Amgen Contract #200200784
	 	49Lease Agreement, dated January 11, 2005

 EXHIBIT 10.50 
  
 LEASE 
  
 This LEASE (“Lease”) is made as of January 11, 2005 (“Effective Date”) between BMR-201 INDUSTRIAL ROAD LLC, a Delaware
limited liability company (“Landlord”), and NUVELO, INC., a Delaware corporation (“Tenant”), who agree as follows: 
  
 RECITALS: 
  
 This Lease is executed by Landlord and Tenant in contemplation of the following facts and circumstances: 
  
 A. Landlord is the owner of certain real property located in the City of San
Carlos, State of California, commonly known as 201 Industrial Road, San Carlos, California, and more particularly described on Exhibits A and B which are attached and made a part of this Lease. The land consists of approximately 4.701
acres (together with any easements and appurtenances thereto, the “Land”) with two existing, connected buildings containing approximately 171,965 rentable square feet of space. The Land and the buildings are collectively referred to
as the “Project.” 
  
 B. Tenant desires to lease
from Landlord, and Landlord is willing to lease to Tenant, that portion of the Project (hereinafter referred to as the “Premises”) delineated on the floor plan attached hereto as Exhibit B-1 and made a part hereof, consisting
of approximately 55,000 rentable square feet located on the third (3rd) floor and a portion of the fourth
(4th) floor of the building known as “Building 2,” which Building 2 consists of approximately 92,048
rentable square feet of space, upon the terms and conditions contained herein (Building 2 is hereinafter referred to as the “Building”). Landlord and Tenant agree that for all purposes of this Lease, the total rentable square feet
for the third (3rd) floor shall be deemed to be 45,574 square feet (with 43,972 usable square feet) and the total
rentable square feet for the fourth (4th) floor shall be deemed to be 46,474 square feet (with 44,840 usable square
feet). 
  
 C. As consideration for Tenant entering into this
Lease, Landlord shall provide Tenant with a tenant improvement allowance to construct certain improvements to the Premises. In addition, Landlord agrees to cooperate with Tenant to establish a shipping and receiving area on the ground floor of the
Building and to rework the reception area on the second (2nd) floor of the Building to address Tenant’s entry
and aesthetic needs, the costs of which shall be paid from the Tenant Improvement Allowance (as defined in Section 4.5) except for those portions described as Landlord’s Work in the Work Letter, which shall be at Landlord’s sole cost and
not as part of the Tenant Improvement Allowance. 
  
 NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. DEFINITIONS. The terms defined in this paragraph, for all purposes of this Lease, shall have the meanings herein specified. Terms defined
elsewhere in this Lease shall have the meanings as defined thereunder. 
  
 1.1 “Applicable Law” shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, permits, licenses, regulations, ordinances, 

  

 1 

 
judgments, decrees, directions and injunctions affecting the Premises or any portion thereof or the use or occupancy thereof, whether now or hereafter
enacted or in force, whether ordinary or extraordinary, foreseen or unforeseen. 
  
 1.2 “Claims” shall mean any and all liabilities (statutory or otherwise), obligations, claims, demands, damages,
penalties, causes of action, costs, expenses (including attorneys’ fees and expenses), losses and injuries arising from the subject matter of an indemnity granted herein. 
  
 1.3 “Common Areas” shall mean all portions of the Project which are for the non-exclusive
use of tenants of the Project, including, without limitation, driveways, sidewalks, parking areas, landscaped areas, service corridors, stairways, elevators, public restrooms and building lobbies. 
  
 1.4 “Default Rate” shall mean the greater
of (i) ten percent (10%) per annum, or (ii) five percent (5%) per annum plus the discount rate of the Federal Reserve Bank situated nearest the Premises; provided, however, in no event shall the Default Rate exceed the maximum interest
rate permitted under applicable law. 
  
 1.5
“HVAC-Building” shall mean all heating, ventilation and air conditioning equipment and all equipment and fixtures related thereto that services the Building or the Project. 
  
 1.6 “Lease Commencement Date” shall be the
Effective Date. 
  
 1.7 “Lease
Term” shall mean the period commencing with the Lease Commencement Date and ending after the term described in Paragraph 4.1. 
  
 1.8 “Lender” shall mean any lender whose loan is secured by a deed of trust on any part of the Premises or this leasehold
interest. 
  
 1.9 “Rent” shall
include all Monthly Rent, Additional Rent and all other sums of any and every sort payable hereunder to Landlord by Tenant. 
  
 1.10 “Rent Commencement Date” shall be the earliest of (i) the date Tenant’s Work (as defined in the Work Letter) is
Substantially Completed; (ii) the date Tenant occupies substantially all of the Premises for the purpose of operating its business; (iii) such earlier date as provided in the Work Letter or as the parties hereto may agree; or (iv) September 1, 2005.
Notwithstanding the foregoing, if Landlord does not cause temporary power to be provided to the Building with an electricity load equal to approximately 50 amps) on or prior to the February 1, 2005 (the “Outside Date”), then the
Rent Commencement Date shall be extended by a day for each day that Landlord fails to complete such Landlord’s work after the Outside Date. Landlord and Tenant shall each execute and deliver to the other written acknowledgement of the Rent
Commencement Date and the expiration date of the Lease Term when such is established and shall attach the acknowledgement to this Lease as part of Exhibit C; provided, however, failure to execute and deliver such acknowledgement
shall not affect Landlord or Tenant’s rights or liabilities hereunder. Notwithstanding anything to the contrary in this Section 1.10, the Rent Commencement Date shall be delayed until Tenant shall have received a fully executed 

  

 2 

 
non-disturbance and attornment agreement from any mortgagee or deed of trust beneficiary of record as of the date of the mutual execution of this Lease, if
applicable. 
  
 1.11 “Security
Deposit” shall be an amount equal to three (3) times the Initial Monthly Rent. 
  
 1.12 “Substantially Complete(d)” and “Substantial Completion” shall mean latest of (i) the date of
issuance of a temporary certificate of occupancy subject only to such minor work as would not unreasonably interfere with Tenant’s occupancy and use of the Premises for the purposes for which it is to be used, (ii) the date Tenant receive a
Certificate of Substantial Completion in the form of the American Institute of Architects document G704 executed by the project architect and the general contractor, or (iii) the satisfaction of all requirements set forth in the Work Letter for
project completion. 
  
 1.13
“Subtenant” shall mean any tenant, assignee, subtenant, licensee, concessionaire or other occupant of the Premises (other than Tenant); and the term “sublease” shall mean any lease, assignment, sublease, license or other
agreement for the use or occupancy of any such space (other than this Lease). 
  
 1.14 “Taking” shall mean a taking or voluntary conveyance of title to or any interest in all or any part of the Premises, or the right to use all or any part thereof, pursuant to, as a result of, or
in lieu or in anticipation of, the exercise of the right of condemnation, expropriation or eminent domain; and upon such a Taking the Premises, or such part thereof, shall be deemed to have been “taken.” 
  
 1.15 “Taxes” shall mean all government
impositions including, without limitation, property tax costs consisting of real and personal property taxes and assessments (including amounts due under any improvement bond upon the Building or the Project, including the parcel or parcels of real
property upon which the Building and areas serving the Building are located or assessments levied in lieu thereof) imposed by any governmental authority or agency on the Project or improvements thereon, any tax on or measured by gross rentals
received from the rental of space in the Project, or tax based on the square footage of the Premises, the Building or the Project as well as any parking charges, utilities surcharges, or any other costs levied, assessed or imposed by, or at the
direction of, or resulting from statutes or regulations, or interpretations thereof, promulgated by any federal, state, regional, municipal or local government authority in connection with the use or occupancy of the Project or the parking
facilities serving the Project; any tax on this transaction or any document to which Tenant is a party creating or transferring an interest in the Premises; any fee for a business license to operate an office building; and any expenses, including
the reasonable cost of attorneys or experts, reasonably incurred by Landlord in seeking reduction by the taxing authority of the applicable taxes, less tax refunds obtained as a result of an application for review thereof; provided,
however, that “Taxes” shall in no event include (i) any franchise or income tax or any tax based on net rentals received from the rental of space in the Project or taxes which are the personal obligation of Tenant or of another
tenant of the Project; (ii) any Taxes that are fairly allocate to any period of time prior to the Lease Commencement Date or following the expiration or sooner termination of this Lease (except for Tenant’s personal property taxes); and (iii)
any Taxes that 

  

 3 

 
are fairly allocable to any other tenant’s personal property or payable as a result of a default by Landlord under this Lease or a default of any other
tenant of the Project. 
  
 1.16 “Work
Letter” shall mean the Work Letter attached hereto as Exhibit D. 
  
 2. FUNDAMENTAL LEASE PROVISIONS. 
  

			
	Initial Lease Term:	 	Seven (7) years
		
	Rentable Area:	 	55,000 square feet, subject to adjustment pursuant to Paragraph 4.7
		
	Rentable Area of Project:	 	171,965 square feet
		
	Initial Annual Rent:	 	$28.20 per rentable square foot, subject to annual adjustments pursuant to Paragraph 5
		
	Initial Monthly Rent:	 	$2.35 per rentable square foot, subject to annual adjustments pursuant to Paragraph 5
		
	Security Deposit:	 	Three (3) times the Initial Monthly Rent
		
	Target Rent
Commencement Date:	 	 
		
	Tenant’s Pro Rata Share of Operating Expenses:	 	  
 62% with respect to Operating Expenses for the Building, subject to
adjustment pursuant to Paragraph 4.7
  
 32% with respect to Operating Expenses for
the Project, subject to adjustment pursuant to Paragraph 4.7

		
	Address for Notices:	 	 
		
	To Landlord:	 	 c/o BioMed Realty, L.P.
 17140 Bernardo Center Drive,
Suite 222
 San Diego, California 92128
 Attention: Gary A.
Kreitzer

  

 4 

			
	To Tenant:	 	 Nuvelo, Inc.
 201 Industrial Blvd. Bldg. #2
 San Carlos, California 94070
 Attention: Gary Titus

		
	With a copy to:	 	 Hopkins & Carley
 P.O. Box 1469
 San Jose, California 95109-1469
 Attention: Garth E.
Pickett

		
	Exhibits:	 	 A (Legal Description)
 B (Site Plan)
 B-1 (Premises)
 B-2 (Roof
Rights)
 C (Acknowledgement of Rent Commencement Date)
 D (Work
Letter)
 E (Rules and Regulations)
 F (Estoppel
Certificate)
 G (Expansion Space)

  
 In the event of any
conflict between any Fundamental Lease Provision and the balance of this Lease, the latter shall control. 
  
 3. AGREEMENT TO LEASE. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, under the terms and conditions of
this Lease. 
  
 4. TERM AND POSSESSION. 
  
 4.1 Lease Term. The initial Lease Term shall begin as
of the Lease Commencement Date and shall continue until seven (7) years after the Rent Commencement Date unless sooner terminated or renewed as provided in this Lease; provided that, if the Rent Commencement Date is other than the first of a
calendar month, the initial Lease Term shall continue until seven (7) years after the first day of the calendar month following the month in which the Rent Commencement Date occurs. Provided that no Default has occurred and is continuing at the time
Tenant elects to extend the Lease Term, Tenant, at its sole option, may extend the Lease Term for two (2) additional periods of five (5) years each (individually, an “Extension Period”), subject to all the provisions of this Lease,
except, however the Rent (as defined in Paragraph 5 below) shall be adjusted at the commencement of each Extension Period to an amount equal to ninety-five percent (95%) of the then current fair market rental rate as agreed to by
Landlord and Tenant, but in no event shall the Rent be less than the Rent payable on the date immediately preceding the commencement of such Extension Period. “Fair market rental rate” of the Premises shall be
determined with reference to the then prevailing market rental rates for properties in the San Francisco mid-peninsula area with improvements and common area improvements comparable to those then existing in the Premises and paid for by Landlord. If
after thirty (30) days following delivery of the written extension notice described in 

  

 5 

 
Paragraph 4.2 below, Landlord and Tenant are unable to agree upon the fair market rental value of the Premises, Tenant shall obtain at its expense and
deliver to Landlord an independent appraisal of the fair market rental value of the Premises as of the commencement of the Extension Period. Following its receipt of Tenant’s appraisal, Landlord may elect to obtain at its expense and deliver to
Tenant a second independent appraisal of the fair market rental value of the Premises as of the commencement of the Extension Period. If Landlord elects not to obtain a second appraisal, or if Landlord’s appraisal is no more than five percent
(5%) greater than Tenant’s appraisal, Tenant’s appraisal shall be conclusive. If Landlord’s appraisal is more than five percent (5%) greater than Tenant’s appraisal, the two appraisers shall appoint a third appraiser to appraise
the fair market rental value of the Premises as of the commencement of the Extension Period, and the fair market rental value of the Premises shall be the arithmetical average of the two appraisals closest in their determination of fair market
rental value. Landlord and Tenant shall bear equally the expense of the third appraiser. The Monthly Rent as so determined for each Extension Period shall be increased annually by $0.07 per rentable square foot above its then current amount as
provided in Paragraph 5.1.4 below. All references in this Lease to “Lease Term” shall be considered to include both the initial term of this Lease and any properly executed Extension Period, and all references to termination or to
the end of the Lease Term shall be considered to mean the termination or end of the initial term of this Lease or any exercised Extension Period, as the case may be. 
  
 4.2 Procedure to Extend Term. Tenant may exercise its option with respect to each Extension Period by
complying with the following procedure: At least ten (10) months before the last day of the then applicable Lease Term (the “Exercise Period”), Tenant shall deliver written notice to Landlord setting forth Tenant’s irrevocable
election to exercise the option to extend. Extension Periods are personal to Tenant and not assignable separate and apart from this Lease, except for an assignment pursuant to a merger or consolidation, or an assignment to a parent, subsidiary or
affiliate of Tenant. 
  
 4.3 Tenant’s
Default. Notwithstanding the foregoing, if a Default has occurred and is continuing at the time Tenant elects to extend the Lease Term (unless Tenant is diligently pursuing the cure of such Default), Tenant shall have no right to extend the
Lease Term as herein provided, and Landlord shall be free to lease the Premises to any other party or parties. Furthermore, nothing in this Paragraph 4.3 shall increase or extend the Exercise Period. 
  
 4.4 Possession. Landlord shall endeavor to tender
possession of the Premises to Tenant on or before January 5, 2005. Tenant may occupy any and all portions of the Premises, for the purpose of constructing Tenant’s tenant improvements therein and installing its furniture, fixtures and
equipment, prior to the Rent Commencement Date, with no obligation to pay Rent until the Rent Commencement Date. Landlord shall have the right to perform Landlord’s Work after tendering possession, provided it does not materially interfere with
Tenant’s Work. Delivery of possession is conditioned upon receipt by Tenant of a fully executed non-disturbance and attornment agreement from any mortgagee or deed of trust beneficiary of record as of the date of the mutual execution of this
Lease, if applicable. In the event Landlord does not tender possession of the Premises to Tenant on or prior to the Outside Date, the Rent Commencement Date shall be extended by a day for each day that Landlord fails to tender possession of the
Premises to Tenant after the Outside Date. 
  

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 4.5 Tenant Improvements. Tenant shall cause to be constructed the tenant
improvements in the Building (the “Tenant Improvements”) pursuant to the Work Letter at a cost to Landlord not to exceed Seven Million Seven Hundred Thousand Dollars ($7,700,000.00) (based upon One Hundred Forty
Dollars ($140.00) per rentable square foot and subject to adjustment in Rentable Area as provided in Section 4.7 herein) (the “Tenant Improvement Allowance”) which shall include the cost of construction, cost of space
planning, architect, engineering and other related services, building permits, signage, consulting fees, equipment (including personal property and trade fixtures, which shall not exceed fifteen percent (15%) of the Tenant Improvement Allowance),
relocation costs, furniture, cabling and other planning and inspection fees. Any costs incurred in performing the Tenant Improvements described in the Work Letter in excess of the Tenant Improvement Allowance shall be borne solely by Tenant;
provided, however, at Tenant’s option, Landlord shall fund such excess in an amount not to exceed Twenty-Five Dollars ($25.00) per rentable square foot (the “Additional Allowance,” and together with the Tenant
Improvement Allowance, the “Combined Allowance”). The Additional Allowance shall be repaid by Tenant monthly as Additional Rent beginning with Tenant’s first Rent payment, in a monthly amount equal to the Additional Allowance
fully amortized at an interest rate of twelve percent (12%) per annum over twelve (12) years. Tenant may prepay the remaining Additional Allowance at any time without penalty, and shall repay the remaining Additional Allowance in full upon
expiration of the Lease Term. Any unused portion of the Tenant Improvement Allowance shall be credited against Monthly Rent payments as such Monthly Rent payments become due. In addition to the Tenant Improvement Allowance and Additional Allowance,
Landlord will provide Tenant with an additional allowance of up to 15/100 Dollars ($0.15) per rentable square foot for purposes of Dowler-Gruman Architects preparing a preliminary space planning “test-fit,” payable upon Landlord’s
receipt of such test-fit prior to construction of any tenant improvements. 
  
 4.6 Termination Option. Tenant shall have an option to terminate this Lease (the “Termination Option”) for a period commencing on the Lease Commencement Date and ending on the fourth
(4th) anniversary of the Rent Commencement Date (the “Termination Option Period”). Tenant
shall be entitled to exercise the Termination Option by giving notice to Landlord prior to the expiration of the Termination Option Period. If Tenant exercises the Termination Option, (a) the termination of the Lease shall be effective as of the
fifth (5th) anniversary of the Rent Commencement Date (the “Termination Date”), (b) Tenant shall
continue to meet all of its obligations under the Lease, including the payment of Rent, through the Termination Date and (c) on the Termination Date, Tenant will pay Landlord the remaining unamortized portion of the Tenant Improvement Allowance, the
remaining Additional Allowance, if any, and leasing commissions (the “Termination Penalty”), based on an eighty-four (84) month amortization period for the Premises and the actual lease term of any Expansion Space (calculated using
a flat average, with no interest). The Termination Penalty shall be pro rated based on the actual rentable square footage leased by Tenant under this Lease on the Termination Date. Tenant’s right to exercise the Termination Option shall be
subject to the conditions that (i) no voluntary or involuntary petition in bankruptcy naming Tenant as debtor has been filed, and no general assignment for the benefit of creditors has been made by Tenant prior to the termination of the Lease and
(ii) Tenant shall not be in Default under the Lease beyond any applicable cure period provided in the Lease at the time Tenant exercises the Termination Option and through the Termination Date, and if Tenant is in Default beyond any 

  

 7 

 
applicable cure period during such period, then any effort to exercise the Termination Option, whether occurring before or after any such Default by Tenant,
shall be null and void. Notwithstanding the foregoing to the contrary, in the event Tenant is in Default but is diligently pursuing the cure of such default, Tenant may exercise the Termination Option provided that such Default is cured by Tenant
within a reasonable time thereafter but in no event later than the Termination Date. 
  
 4.7 Rentable Square Footage. The term “Rentable Area” as set forth in Section 2 and as referenced within the Work Letter
attached hereto as Exhibit “D” and as may otherwise be referenced within this Lease shall be adjusted after being calculated in accordance with the 1996 Standard Method for Measuring Floor Area in Office Buildings as adopted by the
Building Owners and Managers Association. The calculation shall be based upon the Approved Tenant Plans, as defined in Section 3.2 of the Work Letter, and shall be made by Dowler-Gruman Architects as Tenant’s architect. In addition to the
Premises, the Rentable Area shall include any interior shipping and receiving area and storage area utilized by Tenant. After finalization of the calculation of the Rentable Area, Section 2 of the Lease shall be adjusted as to Rentable Area and
Tenants Pro Rata Share of Operating Expenses, if necessary. 
  
 5.
RENT; SECURITY DEPOSIT. 
  
 5.1 Monthly
Rent. 
  
 5.1.1 Tenant shall pay the Rent to
Landlord during the Lease Term, commencing as of the Rent Commencement Date, without deduction, setoff, prior notice or demand. Tenant shall pay the Rent in advance on the first day of each calendar month during the Lease Term. Rent for any partial
months will be prorated based upon the number of days in the month, and will be paid in advance on the first day of each month. 
  
 5.1.2 Upon the Rent Commencement Date, Tenant shall pay to Landlord the Rent due and payable for the first full calendar month of the
Lease Term. If the Rent Commencement Date is not on the first day of a calendar month, Tenant shall pay to Landlord the prorated Rent for the first partial month of the Lease Term. 
  
 5.1.3 All Rent payable hereunder shall be paid to Landlord in lawful money of the United States of America
which shall be legal tender at the time of payment at Landlord’s office or to such other person or at such other place as Landlord from time to time may designate in writing. 
  
 5.1.4 The Initial Annual Rent shall be the amount set forth in Paragraph 2. The Annual Rent will be payable
in twelve (12) equal installments (“Monthly Rent”). The Landlord and Tenant shall attach an acknowledgement of the Initial Annual Rent to this Lease as part of Exhibit C; provided, however, failure to execute
and deliver such acknowledgement shall not affect Landlord’s or Tenant’s rights or liabilities hereunder. Effective each year during the Lease Term (including any Extension Period) on the anniversary of the first day of the calendar

  

 8 

 
month following the month in which the Rent Commencement Date occurs, Monthly Rent shall be increased by $0.07 per rentable square foot above its then
current amount. 
  
 5.2 Additional Rent.
Commencing upon the Rent Commencement Date Tenant shall pay to Landlord (unless otherwise expressly required hereunder to pay directly to a third party), as additional rent (“Additional Rent”), all sums of money of any and every
sort required to be paid by Tenant under this Lease, whether or not the same are designated as Additional Rent. If such amounts or charges are not paid at the time provided in this Lease, they shall nevertheless be collectible as Additional Rent
with the next installment of Monthly Rent thereafter falling due, but nothing herein contained shall be deemed to suspend or delay the payment of any amount of money or charge at the time the same becomes due and payable hereunder, or limit any
other remedy of Landlord. 
  
 5.3 Late
Payment. If Tenant shall fail to pay, when the same is due and payable (after giving effect to any applicable notice and cure period), any Rent, such unpaid amounts shall bear interest at the Default Rate from the date which is two (2) business
days after written notice from Landlord that such payment is due. Tenant further acknowledges that late payment of Monthly Rent will cause Landlord to incur certain costs not contemplated by this Lease, the exact amount of such costs being extremely
difficult and impractical to determine with certainty. For this reason, in addition to interest, if Tenant shall fail to pay (which for purposes of this paragraph, “pay” shall mean actual receipt of the payment by Landlord) any installment
of Monthly Rent by the fifth (5th) day after receipt of written notice from Landlord of such late payment, a late
charge equal to three and one-half percent (3.5%) of the overdue installment of Monthly Rent automatically shall be due without further notice, and shall be in addition to all other sums due. The Parties agree that this additional late charge
represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. 
  
 5.4 No Right to Setoff. Tenant shall pay to Landlord, throughout the Lease Term, the Rent and other sums payable hereunder, free of
any charges, assessments, deductions or reductions of any kind, and without abatement, deduction or setoff except as otherwise expressly provided for herein. 
  

5.5 Payment of Security Deposit. Landlord hereby acknowledges receipt of Tenant’s Security Deposit unless this Lease is
executed on or before January 3, 2005, in which event the Security Deposit shall be delivered to Landlord on January 5, 2005. This amount shall be deposited by Landlord into a non-segregated, interest-bearing bank account (with interest accruing for
the benefit of Landlord) in a federally insured bank or savings institution, and shall be held for the faithful performance of all of the provisions and conditions of this Lease to be kept and performed by Tenant hereunder and under the Work Letter.
Landlord’s obligation with respect to the Security Deposit is that of a debtor and not of a trustee. 
  
 5.6 Use of Security Deposit. If Tenant defaults with respect to the payment of Rent or any other covenant contained herein or in
the Work Letter, Landlord may use or retain all or any part of the Security Deposit for the payment of any Monthly Rent, Additional Rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to
spend by reason of Tenant’s Default. Landlord also may apply the Security 

  

 9 

 
Deposit toward costs incurred to repair damages to the Premises, other than ordinary wear and tear, and damage from casualty or condemnation, or to
reasonably clean the Premises upon termination of this Lease. If any portion of the Security Deposit is so applied or used, Tenant shall, within five (5) business days after written notice thereof, deposit an additional amount with Landlord
sufficient to restore the Security Deposit to the amount set forth in Paragraph 1.11, and Tenant’s failure to do so shall constitute a material breach of this Lease. If Tenant shall fully and faithfully perform every provision of this Lease to
be performed by Tenant, the Security Deposit (including interest thereon), or the balance thereof, shall be returned to Tenant (or, at Landlord’s option to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the
expiration or earlier termination of the Lease, subject to the provisions of Paragraph 27. Landlord and/or the Lender may use, apply or retain all or any part of the Security Deposit for the payment of Tenant Improvement costs incurred by Landlord
in excess of the Combined Allowance. If any portion of the Security Deposit is so applied, upon the Rent Commencement Date, Tenant shall deposit cash or a replacement letter of credit with Landlord in an amount sufficient to restore the Security
Deposit to its original amount, and Tenant’s failure to do so shall constitute a material breach of this Lease. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied
first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 
  
 5.7 Pledge of Security Deposit. Subject to Tenant’s right, title and interest in the Security Deposit, the Security Deposit
may be pledged by Landlord as additional collateral to the Lender. 
  
 5.8 Letter of Credit. The Security Deposit may be delivered either in cash or in the form of letter of credit reasonably acceptable to Landlord. 
  
 5.8.1 In lieu of depositing cash as the Security Deposit, Tenant shall have the right to deliver to Landlord
an unconditional, irrevocable standby letter of credit in the amount of the cash Security Deposit otherwise required hereunder, which letter of credit shall (a) be in a form reasonably acceptable to Landlord, (b) be issued by a financial institution
selected by Tenant and reasonably acceptable to Landlord, (c) be for the benefit of Landlord, but shall be assignable by Landlord to any subsequent purchaser or encumbrancer of the Building or the Project, (d) be automatically renewable from year to
year throughout the Lease Term, (e) be payable by draft sight in a location reasonably acceptable to Landlord upon presentation of a certification signed by an officer of Landlord which states that a default under the Lease has occurred and has not
been cured within any applicable cure period, and (f) be payable in the event such letter of credit is not renewed on or before the date which is thirty (30) days prior to its expiration. Any amounts of cash drawn on a letter of credit Security
Deposit will thereafter be treated as a cash Security Deposit hereunder. 
  
 5.8.2 Tenant shall have the right at any time during the Lease Term upon thirty (30) days prior written notice to Landlord (i) to replace a cash Security Deposit with a letter of credit which complies with all the
terms of Paragraph 5.8.1, or (ii) to replace a letter of credit Security Deposit with an applicable amount of cash. 
  

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 6. PERMITTED USE. 
  
 6.1 Permitted Use. Tenant shall use the Premises for the purposes of laboratory research (including
animal testing), administration, pharmaceutical and related health care research uses (and only for such purposes) (the “Permitted Use”). During the Lease Term, the Premises and every part thereof shall be kept by the Tenant in a
clean and wholesome condition, free of any noises or activities, which constitute any nuisance. Tenant shall comply with all Applicable Law in all respects and at all times during the Lease Term. 
  
 6.2 No Violations. Tenant shall not use or occupy the
Premises in violation of any federal, state and local laws and regulations, zoning ordinances, or the certificate of occupancy issued for the Building or the Project, and shall, upon five (5) days written notice from Landlord, discontinue any use of
the Premises upon demand of any governmental authority having jurisdiction which declares or claims a violation of law, regulation or zoning ordinance or of such certificate of occupancy, or which in the reasonable opinion of Landlord violates law,
regulation or zoning ordinance or the certificate of occupancy. Tenant shall comply with any direction of any governmental authority having jurisdiction which shall, by reason of the nature of Tenant’s use or occupancy of the Premises, impose
any duty upon Tenant or Landlord with respect to the Premises or with respect to the use or occupation thereof. Tenant shall not do or permit anything to be done in or about the Premises, except as is reasonably consistent with the Permitted Use,
which shall in any way obstruct or interfere with the rights of other tenants or occupants of the Project, or injure or annoy them, or use or allow the Premises to be used for unlawful purpose, nor shall Tenant knowingly cause, maintain or permit
any nuisance or waste in, on or about the Premises, the Building or the Project. 
  
 6.3 Additional Locks. No additional locks or bolts of any kind shall be placed upon any of the doors or windows by Tenant nor shall
any changes be made in existing locks or the mechanism thereof without the prior written consent of Landlord; provided, however. Tenant shall be entitled to change existing office, storage and other ancillary door locks or the
mechanism thereof without the prior written consent of Landlord so long as a copy of the new key is promptly provided to Landlord. Tenant must, upon termination of this Lease, return to Landlord all keys to offices and restrooms either furnished to
or otherwise procured by Tenant. In the event any key so furnished is lost, Tenant shall pay to Landlord the cost of replacing the same or of changing the lock or locks opened by such lost key if Landlord shall deem it necessary to make such change.

  
 6.4 Exterior Appearance. No awnings or
other projection shall be attached to any outside wall of the building other than as expressly permitted under this Lease. No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the
Premises other than Landlord’s standard window coverings. Neither the interior nor exterior of any windows shall be coated or otherwise sunscreened without the express written consent of Landlord, nor shall any bottles, parcels, or other
articles be placed on the windowsills. No equipment, furniture or other items of personal property shall be placed on any exterior balcony without the express written consent of Landlord. 
  

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 6.5 Signs. No sign, advertisement, or notice shall be exhibited, painted or
affixed by Tenant on any part of the Premises, the Building or the Project without the prior written consent of Landlord; provided, however, subject to the rights of Nektar Therapeutics to have a proportionate share of external and
monument signage, in proportion to the ratio between the useable square footage in its premises and the total useable square footage on the Project, and to continue to display its corporate name and logo on the exterior of the buildings and the
monument in the size and manner it is displayed as of the Effective Date, and in compliance with Applicable Laws relating to such signage, (a) Tenant shall have the right to ground monument signage at the entrance to the Project, and (b) during such
time as the Premises encompasses the entire third (3rd) floor of the Building, Tenant (at its sole cost and expense)
shall have the right to external, building-top signage on the southeastern side of the Building facing Highway 101, displaying Tenant’s corporate logo, such external signage to be the maximum available signage permitted by Applicable Laws, but
not greater than the external signage of Nectar Therapeutics as it is displayed as of the Effective Date subject to the foregoing. Landlord agrees to cooperate with Tenant, without any cost to itself, if Tenant chooses to seek a signage variance
from the appropriate governmental agency in order to increase the size of its exterior signage. Common Area, Building ground monument and directory signs on doors and the directory tablet shall be inscribed, painted or affixed for Tenant by Landlord
at the expense of Landlord (except ground monument signage, which shall be at the expense of Tenant), and shall be of a size, color and type typical of the Project. The directory tablet shall be provided exclusively for the display of the name and
location of tenants only. In addition, Tenant may, at Tenant’s sole cost and with Landlord’s consent (which consent shall not be unreasonably withheld, delayed or conditioned), install signage in the reception area of the Building on the
south wall abutting Tenant’s Premises. 
  
 6.6 Structural Integrity. Landlord agrees and acknowledges that the Building load is one hundred (100) pounds per square foot for dead load and one hundred fifty (150) pounds per square foot for live load. Tenant shall cause any
office equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations therefrom from extending outside the Building. Further, no equipment or machinery weighing five hundred (500) pounds, or greater, shall be
placed in the Premises without advance notice to and approval by Landlord. Such equipment or machinery, if approved by Landlord, shall be placed only at a location designed to carry the weight of such equipment. 
  
 6.7 ADA. Tenant shall be responsible for all
liabilities, costs and expenses arising out of or in connection with the compliance of Tenant’s particular use of the Premises with the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (together with regulations promulgated
pursuant thereto, “ADA”) and Tenant shall indemnify, defend and hold Landlord harmless from and against any loss, cost, liability or expense (including reasonable attorneys’ fees and disbursements) arising out of any failure of
the Premises to comply with the ADA; provided that in no event shall Tenant be responsible for any alterations to the Premises that are part of Landlord’s Work or any alterations to the Common Areas that are performed by Landlord.
Notwithstanding the foregoing, Landlord represents and warrants to Tenant that, if based upon current interpretations of ADA as of the Commencement Date, the Premises (exclusive of furniture and equipment) fail, as of the Lease Commencement Date, to
comply with ADA, Landlord will be solely responsible, at its cost and not as an Operating Expense, to correct such violation of ADA. 
  

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 6.8 Roof Rights. During the Lease Term, Tenant shall have access to the roof of
the Building for the purpose of installing and operating satellite or wireless communication equipment, which installation and operation shall be subject to Landlord’s prior written consent (which consent shall not be unreasonably withheld,
delayed or conditioned). Any such equipment shall be installed on the roof of the Building, in the permitted locations shown on Exhibit B-2 hereto, by means of a roof mount so that (1) no part of the equipment or mount can be seen from
Industrial Road or any Common Area, (2) no penetration of the roof of the Building results from the installation of the equipment and (3) no alteration or damage is caused to the roof of the Building as a result of such installation. Tenant shall
bear all costs related to any such equipment, including, but not limited to, installation, maintenance, repairs, operation, permitting and other governmental approvals, and any roofing damage, leaks, loss of warranty coverage by Landlord or other
roofing issues, and returning the roof and installation site to its original condition at the end of the Lease Term (if so requested by Landlord). Notwithstanding the foregoing, Tenant shall not be required to restore any roof equipment or
installation that are part of the initial Tenant Improvements. The presence or operation of such equipment shall not interfere in any way with or violate the rights of any other person or entity, including the rights of existing tenants and rooftop
users and uses. Tenant shall indemnify Landlord and its officers, directors, employees, agents and affiliates from any loss, damage or claim (including reasonable attorneys’ fees) made by any third party due to or arising out of Tenant’s
possession or operation of such equipment. Only licensed contractors with valid liability and worker’s compensation insurance in place shall perform any work related to any such equipment, and Landlord, any ground lessor and any Lender (or its
successors and assigns) shall be named as additional insureds. 
  
 7. TAXES; OPERATING EXPENSES. 
  
 7.1 Payment of Real Property Taxes. Commencing with the Rent Commencement Date and continuing for each calendar year, or tax year at Landlord’s option (such “tax year” being a period of twelve (12) consecutive calendar
months for which the applicable taxing authority levies or assesses Taxes), for the balance of the Lease Term, Tenant shall pay to Landlord Tenant’s Pro Rata Share of all Taxes, pursuant to Paragraph 7.5 below. Such sum for any partial year of
the Lease Term shall be prorated on the basis of the number of days of such partial year. At Tenant’s request, Landlord shall provide Tenant with a copy of the applicable Tax bill or Tax statement from the taxing authority. In addition to any
other amounts due from Tenant to Landlord, if Tenant fails to pay the Taxes to Landlord as herein required, Tenant shall pay to Landlord the amount of any interest, penalties or late charges caused by Tenant’s late payment. 
  
 7.1.1 If the Premises are separately assessed, Tenant shall
have the right, by appropriate proceedings, to protest or contest in good faith any assessment or reassessment of Taxes, any special assessment, or the validity of any Taxes or of any change in assessment or tax rate; provided,
however, that prior to any such challenge Tenant must either (a) pay the taxes alleged to be due in their entirety and seek a refund from the appropriate authority, or (b) post bond in an amount sufficient to insure full payment of the Taxes.
In any event, upon a final determination with respect to such contest or protest, Tenant shall promptly pay all sums found to be due with respect thereto. In any such protest or contest, Tenant may act in its own name, 

  

 13 

 
and at the request of Tenant, Landlord shall cooperate with Tenant in any way Tenant may reasonably require in connection with such contest or protest,
including signing such documents as Tenant reasonably shall request, provided that such cooperation shall be at no expense to Landlord and shall not require Landlord to attend any appeal or other hearing. Any such contest or protest shall be
at Tenant’s sole expense, and if any penalties, interest or late charges become payable with respect to the Taxes as a result of such contest or protest, Tenant shall pay the same. 
  
 7.1.2 If Tenant obtains a refund as the result of Tenant’s protest or contest and subject to
Tenant’s obligation to pay Landlord’s costs (if any) associated therewith, Tenant shall be entitled to such refund to the extent it relates to the Premises during the Lease Term. 
  
 7.2 Personal Property Taxes. Tenant shall be solely
responsible for the payment of any and all taxes levied upon personal property and trade fixtures located upon the Premises and shall pay the same at least ten (10) days prior to delinquency. If any such taxes on Tenant’s personal property or
trade fixtures are levied against Landlord or Landlord’s property or, if the assessed valuation of the Building or the Project is increased by the inclusion therein of a value attributable to Tenant’s personal property or trade fixtures,
and if Landlord after written notice to Tenant pays the taxes based upon such increase in the assessed value, then Tenant shall upon demand repay to Landlord the taxes so levied against Landlord. 
  
 7.3 Other Taxes. If at any time during the Lease Term
under the laws of the United States Government, state, county or city, or any political subdivision thereof in which the Premises are situated, a tax or excise on rent or any other tax, however described, is levied or assessed by any such political
body against Landlord on account of rentals payable to Landlord hereunder, such tax or excise shall be considered “Taxes” for the purposes of this Article 7, excluding, however, from such tax or excise any amount assessed against Landlord
as state or federal income tax. 
  
 7.4
Intentionally Omitted. 
  
 7.5 Payment
of Operating Expenses 
  
 7.5.1 As used
herein, the term “Operating Expenses” shall include: 
  
 (a) Taxes as defined in Paragraph 1.15 above. 
  
 (b) All other reasonable costs paid or incurred by Landlord in connection with the operation and maintenance of the Building and the
Project including, by way of examples and not as a limitation upon the generality of the foregoing, costs of repairs and replacements to improvements (other than capital improvements described in Paragraph 7.5.1(d)) within the Project as appropriate
to maintain the Project as required hereunder; costs of utilities furnished to any Common Areas; sewer fees; cable TV, when applicable; trash collection; cleaning, including windows; costs of maintaining HVAC-Building; maintenance of landscape and
grounds, drives and parking areas; security services and devices; building supplies; maintenance and replacement to equipment utilized for operation and maintenance of the Project 

  

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that are not included in the capital improvements described in Paragraph 7.5.1(d); license, permit and inspection fees; sales, use and excise taxes on goods
and services purchased by Landlord in connection with the operation, maintenance or repair of the Project and Building systems and equipment; the cost of furniture, draperies, carpeting, landscaping and other customary and ordinary items of personal
property provided by Landlord for use in the Common Areas; capital expenditures costing Fifty Thousand Dollars ($50,000) or less, provided that the cost of all other capital expenditures shall be amortized over the useful life of any such capital
expenditure (calculated in accordance with GAAP) and included in Operating Expenses, and further provided that Tenant shall not be responsible for any amortized capital expenditures attributed to any period after the Lease Term; costs of complying
with any applicable laws; hazard waste remediation, rules or regulations; insurance premiums including premiums for public liability, property casualty, earthquake and environmental coverages; portions of insured losses paid by Landlord as part of
deductible portion of loss by reason of insurance policy terms not to exceed $100,000 per occurrence, with such amount to be amortized over the remainder of the Lease Term (provided, Tenant shall not be required to pay any such deductibles for
events occurring in the last year of the Lease Term); service contracts; costs of services of independent contractors retained to do work of nature before referenced, and costs of compensation not to exceed market rate (including employment taxes
and fringe benefits) of all persons who perform regular and recurring duties connected with the day-to-day operation and maintenance of the Project, its equipment, the adjacent walks, landscaped areas, drives and parking areas, including without
limitation, janitors, floor waxers, window-washers, watchmen, gardeners, sweepers and handymen; and costs of management services, which costs of management services shall not exceed two percent (2%) of the Monthly Rent due from Tenant, whether or
not Landlord incurs fees payable to any third party to provide such services and without regard to the actual costs incurred by Landlord for such services. 
  
 (c) Notwithstanding the foregoing, Operating Expenses shall not include any leasing commissions, including any legal fees, advertising
costs, or other related expenses incurred by Landlord in connection with the leasing of space to individual tenants of the Project; expenses which relate to preparation of rental space for a tenant; expenses of initial development and construction,
including but not limited to, grading, paving, landscaping and decorating (as distinguished from maintenance repair and replacement of the foregoing); repairs and maintenance of the structural and exterior portions and Common Areas of the Building
and Project described in Paragraph 7.5.1(d); legal expenses relating to other tenants; costs of repair to the extent reimbursed by payment received by Landlord of insurance proceeds or from funds provided by Tenant or any other tenant; interest upon
loans to Landlord or secured by mortgage or deed of trust covering the Project or a portion thereof (provided interest upon a government assessment or improvement bond payable in installments is an Operating Expense under subparagraph (a) above);
salaries of executive officers of Landlord; depreciation claimed by Landlord for tax purposes (provided this exclusion of “depreciation” is not intended to delete from Operating Expenses actual costs of repairs and replacements in regard
thereto which are provided for in subparagraph (b) above); and taxes of the types that are excluded from “Taxes” in Paragraph 1.15 above. In addition, Operating Expenses shall also not include the following: (i) the cost of constructing
tenant improvements for any other tenant of the Project; (ii) the cost of special services, goods, or materials provided to any other tenant of the Project; (iii) repairs, alterations, additions, improvements, or replacements needed to rectify or
correct any defects in 

  

 15 

 
the original design, materials, or workmanship of the base building structural systems of the Building and Project, including the foundations, roof structure
and exterior walls, Landlord’s Work or any latent defects in the Building or Project; (iv) damage and repairs necessitated by the gross negligence or willful misconduct of Landlord, Landlord’s employees, contractors, or agents; (v)
Landlord’s general overhead expenses not related to the Project; (vi) legal fees, accountants’ fees, and other expenses incurred in connection with disputes of tenants or other occupants of the Project or associated with the enforcement of
the terms of any leases with tenants or the defense of Landlord’s title to or interest in the Project or any part thereof; (vii) costs incurred due to a violation by Landlord or any other tenant of the Project of the terms and conditions of a
lease; (viii) costs of any service provided to Tenant or other occupants of the Project for which Landlord is reimbursed; and (ix) any cost of investigation, testing or cleanup relating to Hazardous Materials not related to Tenant’s use or
occupancy of the Premises. 
  
 (d)
Notwithstanding anything to the contrary in this Paragraph 7.5, Landlord agrees to perform, at its sole cost and expense and not as part of the Operating Expenses during the Lease Term, including any renewal terms, all necessary and customary
capital repairs and capital replacements involving the base building structural systems of the Building and Project, including the foundations, roof structure and exterior walls. 
  
 7.5.2 Tenant shall pay to Landlord on the first day of each calendar month of the Lease Term, as Additional
Rent, Landlord’s estimate of Tenant’s Pro Rata Share of Operating Expenses for such month. Tenant’s Pro Rata Share shall be as set forth in Paragraph 2 above and shall be separately calculated with respect to Operating Expenses of the
Building, which shall include Operating Expenses relating solely to the Building, and Operating Expenses of the Project, which shall include Operating Expenses relating to the Project excluding Operating Expenses relating solely to the Building. The
rentable square footage of the Premises, the Building and the Project referred to in the Recitals of this Lease shall be deemed the actual rentable square feet in the Premises, the Building and the Project. 
  
 (a) Within ninety (90) days after the conclusion of each
calendar year (or such longer period as may be reasonably required), Landlord shall furnish to Tenant a statement showing in reasonable detail the actual Operating Expenses and Tenant’s Pro Rata Share of Operating Expenses for the previous
calendar year. Any additional sum due from Tenant to Landlord shall be due and payable within thirty (30) days of Landlord’s written demand. If the amounts paid by Tenant pursuant to Paragraph 7.5.2 exceeds Tenant’s Pro Rata Share of
Operating Expenses for the previous calendar year, the difference shall be credited by Landlord against the Rent next due and owing from Tenant; provided that, if the Lease Term has expired, Landlord shall accompany said statement with
payment for the amount of such difference. 
  
 (b) Any amount due under this Paragraph 7.5.2 for any period which is less than a full month shall be prorated (based on a 30-day month) for such fractional month. 
  
 7.5.3 Landlord’s annual statement shall be final and binding upon Tenant unless Tenant, within one
hundred and twenty (120) days after Tenant’s receipt thereof, 

  

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shall contest any item therein by giving written notice to Landlord, specifying each item contested and the reason therefor. If, during such one hundred and
twenty (120) day period, Tenant reasonably and in good faith questions or contests the correctness of Landlord’s statement of Tenant’s Pro Rata Share of Operating Expenses, Landlord will provide Tenant with access to Landlord’s books
and records and such information as Landlord reasonably determines to be responsive to Tenant’s questions. In the event that after Tenant’s review of such information, Landlord and Tenant cannot agree upon the amount of Tenant’s Pro
Rata Share of Operating Expenses, then Tenant shall have the right to have an independent public accounting firm hired by Tenant (at Tenant’s sole cost and expense) and approved by Landlord (which approval shall not be unreasonably withheld or
delayed) audit and/or review such Landlord’s books and records for the year in question (the “Independent Review”). The results of any such Independent Review shall be binding on Landlord and Tenant. If the Independent Review
shows that Tenant’s Pro Rata Share of Operating Expenses actually paid for the calendar year in question exceeded Tenant’s obligations for such calendar year, Landlord shall, at Tenant’s option, either (1) credit the excess to the
next succeeding installments of estimated Additional Rent or (2) pay the excess to Tenant within thirty (30) days after delivery of such statement. If the Independent Review shows that Tenant’s payments of Tenant’s Pro Rata Share of
Operating Expenses for such calendar year were less than Tenant’s obligation for the calendar year, Tenant shall pay the deficiency to the Landlord within thirty (30) days after delivery of such statement. 
  
 7.5.4 Tenant shall not be responsible for Operating Expenses
attributable to the time period prior to the Rent Commencement Date, except to the extent owing under any prior lease with Landlord or, if Landlord shall permit Tenant occupancy of the Premises prior to the Rent Commencement Date for purposes of
conducting Tenant’s business therein, Tenant shall be responsible for Operating Expenses from such earlier date of occupancy pursuant to Paragraph 4.4. The responsibility of Tenant for Tenant’s Pro Rata Share of Operating Expenses shall
continue to the latest of (i) the date of termination of the Lease, (ii) the date Tenant has fully vacated the Premises, or (iii) if termination of the Lease is due to the default of Tenant, the date of rental commencement of a replacement tenant.

  
 7.5.5 Operating Expenses for the calendar
year in which Tenant’s obligation to share therein commences and in the calendar year in which such obligation ceases, shall be prorated on a basis reasonably determined by Landlord. Expenses such as taxes, assessments and insurance premiums
which are incurred for an extended time period shall be prorated based upon time periods to which applicable so that the amounts attributed to the Premises relate in a reasonable manner to the time period wherein Tenant has an obligation to share in
Operating Expenses. 
  
 8. CONDITION OF PREMISES.

  
 8.1 Condition of Premises. Tenant has
determined to lease the Premises after a full and complete investigation and examination thereof. Subject to latent defects in Landlord’s Work, Tenant accepts the Premises and all other rights under this Lease “as is.” Except as is
expressly provided herein or under the Work Letter, Landlord shall not be required to furnish any services or facilities or to make any repairs or alterations in or to the Premises throughout the Lease Term. 
  

 17 

 8.2 Landlord’s Warranties. Landlord represents and warrants that, to its
knowledge as of the date Landlord delivers possession of the Premises to Tenant, the Building and the Project, other than the Premises and Tenant’s Work, are in compliance with all applicable building codes, permits, laws and regulations,
including without limitation, ADA and Title 24. Landlord further represents and warrants that it shall deliver possession of the Premises with all structural elements and building systems, including, but not limited to, HVAC-Building (which shall be
building standard), mechanical, electrical, and plumbing systems, in good operating order and repair and the roof watertight. Excluding the foregoing representations and warranties in this Paragraph 8.2, Landlord has not made and makes no
representations or warranties to Tenant of any kind regarding the Premises, the Building or the Project, including, without limitation, any representation or warranty regarding the physical condition of the Premises, its suitability for
Tenant’s intended use, or the availability or capacity of sewer to the Premises. 
  
 9. ALTERATIONS AND IMPROVEMENTS. 
  
 9.1 Construction Requirements. Any alterations or improvements to the Premises of any kind by Tenant (other than those constructed pursuant to the Work Letter which will be subject to the terms thereof), the
cost of which exceeds One Hundred Thousand Dollars ($100,000) or which alters, affects, or modifies Building or Project systems (including, without limitation, mechanical, electrical, plumbing, or HVAC-Building systems), structural components, or
the exterior of the Building or Project shall be subject to satisfaction of each of the following conditions: 
  
 9.1.1 Architectural Review. Prior to commencement of any work, Tenant shall submit its proposed final plans and specifications to
Landlord for Landlord’s consent, which consent shall not be unreasonably withheld, delayed or conditioned. Landlord agrees to respond to Tenant’s proposed final plans and specifications within ten (10) days after its receipt of such final
plans and specifications. Landlord’s failure to approve or disapprove within said ten (10) days shall be deemed approval. 
  
 9.1.2 Code Compliance. Tenant shall comply with all Applicable Law, and Tenant shall obtain all required permits and approvals,
including, but not limited to, any grading permits, building permits, zoning and planning requirements and approvals from any and all necessary governmental agencies and bodies. 
  
 9.1.3 Insurance. Tenant shall deliver to Landlord certificates of insurance evidencing that Tenant or
the general contractor has obtained builder’s all-risk risk insurance in an amount not less than Two Million Dollars ($2,000,000), or in the alternative, a cost of construction endorsement to Tenant’s or such general contractor’s
general liability insurance. Tenant also shall deliver to Landlord evidence of worker’s compensation insurance coverage for all persons employed in connection with the construction and with respect to whom death or personal injury claims could
be asserted against Landlord or the Premises. Tenant also shall deliver to Landlord evidence that Tenant has paid or caused to be paid all premiums for the 

  

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insurance described in this paragraph. Tenant shall maintain or cause to be paid all premiums required to maintain and keep in force all insurance described
in this paragraph at all times during which the construction is in progress. 
  
 9.1.4 Construction Requirements. Once any work of construction has begun, Tenant shall prosecute with reasonable diligence the same to conclusion. All construction shall be performed in a good and workmanlike
manner, shall comply with all Applicable Law and shall be completed in conformance with the plans and specifications approved by Landlord. 
  
 9.1.5 Notice of Construction; Mechanics’ Liens. Landlord and its representatives shall have the right to go upon and inspect
the Premises at all reasonable times upon reasonable prior notice and shall have the right to post and keep posted thereon notices of non-responsibility, or such other notices which Landlord may deem to be proper for the protection of
Landlord’s interest in the Premises; provided, however, that such rights shall not unreasonably interfere with Tenant’s use or possession of the Premises. Before the commencement of any work, which might result in any lien,
Tenant shall give to Landlord written notice of its intention to do so in sufficient time to enable the posting of such notices. Subject to Tenant’s right to contest any Claim or lien, Tenant shall keep the Premises, the Building and the
Project free and clear of any and all liens and encumbrances which may arise at any time in connection with the improvement of the Premises by Tenant or its agents and contractors. Subject to Tenant’s right to contest any Claim or lien, Tenant
shall pay and discharge all expenses incurred by Tenant for the services of mechanics and for the cost of goods and materials supplied by materialmen, and Tenant shall defend, indemnify and hold harmless Landlord and the Premises from and against
any Claims by such mechanics or materialmen for labor or services performed or goods supplied at the request of Tenant. Furthermore, subject to Tenant’s right to contest any Claim or lien, Tenant shall, at its cost and expense, remove all such
mechanics’ liens by bond or otherwise within ten (10) working days after the filing thereof. If Tenant desires to contest any Claim or lien, it shall be entitled to do so on the condition that Tenant first shall either (1) furnish Landlord a
bond of a responsible corporate surety approved by Landlord in such amount as is sufficient to cause discharge of the lien of record, and conditioned on the discharge of the lien, or (2) furnish Landlord with other assurances satisfactory to
Landlord that Landlord will be protected from the effect of such Claim or lien. If a final judgment establishing the validity or existence of a lien for any amount is entered, Tenant shall pay and satisfy the same at once. If Tenant shall not have
paid, as and when required by this Paragraph 9.1.5, any charge for which a mechanics’ lien claim and suit to foreclose the lien have been filed, or if Tenant shall not have given Landlord security to protect the Premises and Landlord against
such Claim or lien as required by this Paragraph 9.1.5, Landlord, upon five (5) days notice to Tenant, may (but shall not be required to) pay said lien or Claim including any costs, in which event the amount so paid, together with reasonable
attorneys’ fees incurred in connection therewith, shall be immediately due and owing from Tenant to Landlord. Tenant shall pay the same to Landlord together with interest on the full amount thereof at the Default Rate from the date of
Landlord’s payment until paid. If any Claims or liens are filed against the Premises or, if any action affecting title to the Premises is commenced, the party receiving notice of such lien or action shall forthwith give the other party written
notice thereof. 
  

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 9.1.6 Notice of Completion. Upon completion of any construction, Tenant shall file
or cause to be filed a notice of completion. Tenant hereby appoints Landlord as Tenant’s attorney-in-fact solely for the purpose of filing the notice of completion if Tenant fails to do so after the construction has been substantially
completed. 
  
 9.1.7 As-Built Plans. On
completion of any construction, Tenant shall give Landlord notice of all changes in plans or specifications made during the course of the work and, at the same time and in the same manner, shall supply Landlord with “as built” drawings
accurately reflecting all such changes. 
  
 9.1.8
Ownership of Improvements. All improvements and fixtures existing on the Premises, the Building and the Project including (without limiting the generality of the foregoing) all wallcoverings, carpeting, flooring, built-in cabinet work,
paneling and the like, all HVAC system that are installed on the Premises for Tenant’s laboratory or specific use (“Special HVAC”), electrical, mechanical, and plumbing equipment and related ducts, shafts, and conduits, all
exterior venting fume hoods, walk-in freezers and refrigerators, clean-rooms, climatized rooms, electrical panels and power back-up distribution systems shall be the property of Landlord and shall remain upon, and be surrendered with the Premises,
as a part thereof, at the end of the Lease Term. In the event that Tenant desires to make any alterations, additions or improvements upon the Premises during the Lease Term, Tenant shall submit to Landlord proposed final plans therefor, together
with a request (the “Identification Notice”) that Landlord identify to Tenant in writing which of the proposed alterations, additions or improvements Landlord elects to remain property of Tenant to be removed by Tenant at the end of
the Lease Term (each a “Tenant-Owned Alteration”). If Landlord fails to respond in writing to the Identification Notice (or fails to designate in writing a proposed alteration, addition or improvement as a Tenant-Owned Alteration)
within fifteen (15) days after Landlord’s receipt of the Identification Notice, then Landlord shall be deemed to have elected to have any proposed alteration, addition or improvement not expressly designated as a Tenant-Owned Alteration within
such fifteen (15) day period become property of Landlord (each a “Landlord-Owned Alteration”). If Tenant thereafter elects to make such proposed alterations, additions or improvements, then (a) all Landlord-Owned Alterations
shall become property of Landlord and shall remain upon, and be surrendered with, the Premises, as a part thereof, at the end of the Lease Term, and (b) all Tenant-Owned Alterations shall remain the property of Tenant and shall be removed by Tenant
at or prior to the end of the Lease Term. Tenant shall repair all damage resulting from its removal of Tenant-Owned Alterations, and restore the affected area to the condition existing prior to installation of Tenant-Owned Alterations. Nothing in
the foregoing shall be construed to imply that Tenant’s Equipment (as defined in Paragraph 13.2 below) or other property of Tenant may become the property of Landlord. All articles of personal property, business and trade fixtures, machinery
and equipment, furniture and movable partitions owned by Tenant or installed by Tenant at its expense in the Premises shall be and remain the property of Tenant and may be removed by Tenant at any time during the term of this Lease, provided
that removal of the same shall not materially affect or damage the Building’s or Project’s electrical, mechanical, or plumbing systems. Any items of Tenant’s improvements which are paid for by Landlord, shall belong to Landlord and
shall not be regarded as owned by Tenant. Notwithstanding the foregoing, at Landlord’s option to be determined by written notice to Tenant at least nine (9) months before the last day of the then applicable Lease Term, the 

  

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personal property and trade fixtures acquired by Tenant and paid from the Tenant Improvement Allowance in accordance with Paragraph 4.5 shall belong to
Tenant, shall not be regarded as owned by Landlord and shall be removed from the Premises by Tenant at the end of the Lease Term. If Tenant does not receive such notice from Landlord at least nine (9) months before the last day of the then
applicable Lease Term, all such personal property and trade fixtures shall become the property of Landlord at the end of the Lease Term. If Tenant shall fail to remove all of its effects from the Premises upon termination of this Lease for any cause
whatsoever, Landlord, at its option, upon written notification to Tenant, may remove the same in any manner that Landlord shall choose and store said effects without liability to Tenant for loss thereof. In such event, Tenant agrees to pay Landlord
upon demand any and all expenses incurred in such removal, including court costs and reasonable attorneys’ fees and storage charges on such effects, for any length of time that the same shall be in Landlord’s possession. If Tenant shall
fail to remove all of its effects from the Premises upon termination of this Lease, Landlord, at its option, without notice, may sell said effects, or any of the same, at private sale and without legal process, for such price as Landlord may obtain
and apply the proceeds of such sale upon the amounts due under this Lease from Tenant to Landlord and upon the expense incident to the removal and sale of said effects. Tenant shall not be responsible for any restoration (or removal) of the fixed
Tenant Improvements performed in accordance with Paragraph 4.5 and the Work Letter, except that Tenant shall be responsible for repairing any damage in removing its personal property or trade fixtures. 
  
 9.2 Landlord Not Responsible. Landlord’s
approvals as required by this Lease shall not make Landlord responsible for the improvement with respect to which an approval is given or the construction thereof, and Tenant shall indemnify, defend (by counsel reasonably acceptable to Landlord),
and hold Landlord and the Premises harmless from and against any Claims arising out of or in connection with any construction in, on or about the Premises or any labor dispute arising in connection therewith. 
  
 10. UTILITIES AND SERVICES. 
  
 10.1 Tenant’s Responsibility. Tenant shall be
responsible for all utility and other services to the Premises, at Tenant’s sole cost and expense. Tenant shall pay all costs therefor, including, without limitation, connection charges and billing deposits. Tenant shall pay (directly to the
provider and prior to delinquency) for all water, gas, electricity, sewer, telephone, cable television and other utilities which may be furnished to the Premises during the term of this Lease. If any such utility is not separately metered to Tenant,
Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other premises as part of Tenant’s Pro Rata Share of Operating Expenses, or in the alternative, Landlord may, at its option, monitor the
usage of such utilities by Tenant and charge Tenant with the cost of purchasing, installing and monitoring such metering equipment, which shall be paid by Tenant as Additional Rent. Notwithstanding the foregoing, Landlord shall be responsible for
the installation and connection of all utility and other services to the Building at Landlord’s sole cost and expense prior to May 1, 2005. Tenant shall be entitled to rent abatement for each day that such installation and connection is not
completed after May 1, 2005, to be credited against the first Monthly Rent payable to Landlord. On or after the Lease Commencement Date, Tenant 

  

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shall have access to the Building and the Premises, seven days a week, twenty-four (24) hours per day, with electric and elevator service being provided at
all such times. 
  
 10.2 Additional
Devices. Tenant shall not, without the prior written consent of Landlord, use any device in the Premises, including, but without limitation, data processing machines, which will in anyway materially increase the amount of ventilation, air
exchange, gas, steam, electricity or water beyond the existing capacity of the Building and the Project as proportionately allocated to the Premises based upon Tenant’s Pro Rata Share as usually furnished or supplied for the uses set forth in
Paragraph 6.1 or be in excess of Tenant’s Pro Rata Share of the Building’s or Project’s capacity to provide such utilities or services; provided, however, Tenant shall have the right, during the Lease Term, subject to
all Applicable Laws, to install, maintain and operate an emergency generator in a size and location reasonably approved by Landlord (such approval not to be unreasonably withheld, conditioned or delayed). 
  
 10.3 Excess Services. If Tenant shall require
services in excess of that usually furnished or supplied for similar space in the Building, by reason of equipment operated and/or extended hours of business operation, then Tenant shall first procure the consent of Landlord for the use thereof,
which consent Landlord may condition upon the availability of such excess utilities or services and Tenant’s payment as Additional Rent of an amount equal to the cost to provide such excess services and utility capacity. 
  
 10.4 Water. Landlord shall provide water in Common
Areas for drinking and lavatory purposes only, but if Tenant requires, uses or consumes water for any purpose in addition to ordinary drinking and lavatory purposes of which fact Tenant constitutes Landlord to be the sole judge, Landlord may install
a water meter and thereby measure Tenant’s water consumption for all purposes. Tenant shall pay Landlord for the cost of the meter and the cost of the installation thereof and throughout the duration of Tenant’s occupancy, thereof and
throughout the duration of Tenant’s occupancy, Tenant shall keep said meter and installation equipment in good working order and repair at Tenant’s own cost and expense, in default of which Landlord may cause such meter and equipment to be
replaced or repaired and collect the cost thereof from Tenant. Tenant agrees to pay for water consumed, as shown on said meter, as and when bills are rendered, and on default in making such payment, Landlord may pay such charges and collect the same
from Tenant. Any such costs or expenses incurred, or payments made by Landlord for any of the reasons or purposes hereinabove stated shall be deemed to be Additional Rent payment by Tenant and collectible by Landlord as such. 
  
 10.5 Landlord Not Responsible. Landlord shall not be
liable in damages or otherwise for any failure or interruption of any utility service or other services being furnished the Premises unless such is caused by the gross negligence or willful misconduct of Landlord, and no such failure or interruption
shall entitle Tenant to terminate this Lease, abate Rent, or be relieved from any obligation or the operation of any covenant or agreement under this Lease unless the same is caused by the gross negligence or willful misconduct of Landlord. Landlord
reserves the right to stop service of the elevator, plumbing, HVAC-Building and electric systems, when necessary, by reason of accident or emergency or for repairs, alterations or improvements, in the reasonable judgment of Landlord desirable or
necessary to be made, until said repairs, alterations or improvements shall have been completed, and Landlord shall further have no 

  

 22 

 
responsibility or liability for failure to supply elevator facilities, plumbing, HVAC-Building or electric service, when prevented from doing so by strike or
accident, or by laws, rules, order, ordinances, directions, regulations or requirements of any federal, state, country or municipal authority or failure to deliver gas, oil or other suitable fuel supply or inability by exercise of reasonable
diligence to obtain gas, oil or other suitable fuel. It is expressly understood and agreed that any covenants on Landlord’s part to furnish any service pursuant to any of the terms, covenants, conditions, provisions or agreements of this Lease,
or to perform any act or thing for the benefit of Tenant, shall not be deemed breached if Landlord is unable to furnish or perform the same by virtue of a strike or labor trouble or any other cause whatsoever. 
  
 11. MAINTENANCE AND REPAIRS. 
  
 11.1 Landlord’s Responsibility. Landlord shall
repair and maintain the structural and exterior portions and Common Areas of the Building and Project to a standard at least equal to other Class A office properties in the San Francisco mid-peninsula, including, without limitation, roofing and
covering materials, foundations, exterior walls, the plumbing, fire sprinkler system (if any), HVAC-Building, elevator, and electrical systems installed or furnished by Landlord (and, except as provided in Paragraph 7.5.1(d), the full cost thereof
shall be included as a part of Operating Expenses), unless such maintenance or repairs are required in whole or in part because of any act, neglect, fault of or omissions of any duty by Tenant, its agents, servants, employees or invitees, in which
case Tenant shall pay to Landlord the cost of such maintenance and repairs. There shall be no abatement of Rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any
repairs, alterations or improvements in or to any portion of the Premises, or in or to improvements, fixtures, equipment and personal property therein unless caused by the gross negligence or willful misconduct of Landlord. Landlord shall use its
best efforts not to unreasonably interfere with Tenant’s use and occupancy of the Premises in making such repairs, alterations or improvements. Landlord shall not be liable for any failure to make any repairs or to perform any maintenance which
is an obligation of Landlord unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. 
  
 11.2 Tenant’s Responsibility. Except for services of Landlord, if any, required by Paragraph
11.1, Tenant shall at Tenant’s sole cost and expense keep the Premises and every part thereof in good condition and repair, damage thereto from ordinary wear and tear excepted. During the Lease Term, except as expressly provided in the Lease,
Landlord shall not be required to maintain or make any repairs or replacements of any nature or description whatsoever to the Premises. 
  
 11.3 Landlord’s Right of Entry for Repairs. Landlord and Landlord’s agents shall have the right to enter upon the
Premises, or any part thereof, upon prior reasonable notice to Tenant not less than 24 hours in advance, for the purpose of performing any repairs or maintenance Landlord is permitted or required to make pursuant to this Lease and, provided a
representative of Tenant is given the reasonable opportunity to accompany Landlord and Landlord’s agents, of ascertaining the condition of the Premises or whether Tenant is observing and performing Tenant’s obligations hereunder, all
without unreasonable interference from 

  

 23 

 
Tenant or Tenant’s Agents. “Tenant’s Agents” shall be defined to include Tenant’s officers, employees, agents, contractors,
invitees, customers and subcontractors. Except for emergency maintenance or repairs, the right of entry contained in this paragraph shall be exercisable at reasonable times, and at reasonable hours. 
  
 12. COMMON AREAS; PARKING. 
  
 12.1 Common Areas. Tenant shall have the
non-exclusive right, in common with others, to use the Common Areas, subject to the rules and regulations adopted by Landlord and attached hereto as Exhibit E together with such other reasonable and non-discriminatory rules and regulations as
are hereafter promulgated by Landlord in its discretion (the “Rules and Regulations”). Landlord shall not be responsible to Tenant for the violation or non-performance by any other tenant or any agent, employee or invitee
thereof of any of said Rules and Regulations. Landlord reserves the right to modify Common Areas including the right to add or remove exterior and interior landscaping and to subdivide real property. It is recognized that Landlord specifically
reserves the right as to a portion of the Building to allow exclusive use of corridors and restroom facilities located on specific floors to one or more tenants occupying such floors, provided Tenant herein shall not be deprived of the use of the
corridors reasonably required to serve the Premises or of restroom facilities serving the floor upon which the Premise are located. Notwithstanding the foregoing, Landlord agrees to cooperate with Tenant to rework the reception area, at
Tenant’s option, on the second (2nd) floor of the Building, which Tenant will share with other tenants of the
Project on a non-exclusive basis, to address Tenant’s entry and aesthetic needs, the costs of which shall be paid from the Tenant Improvement Allowance or Tenant’s own funds. 
  
 12.2 Parking. Subject to the other provisions of this Lease, and excluding those parking spaces
designated by Landlord as being reserved for Nektar Therapeutics, commencing on the Rent Commencement Date and ending on the expiration date of the Lease Term, Tenant shall be entitled to 3.0 unreserved parking spaces per 1,000 rentable square feet
for use by Tenant and its employees, business invitees and agents. Landlord may designate or redesignate from time to time the location of the parking spaces, provided that at all times Tenant and its employees shall be permitted to park in the
underground garage of the Project. Notwithstanding the foregoing, six (6) of such parking spaces shall be designated by Landlord for Tenant’s exclusive use, such designated spaces to be located near the main visitor entrance of the Building and
marked in a manner reasonable acceptable to both Landlord and Tenant at Tenant’s sole cost and expense. Tenant shall not park any trucks or any delivery vehicles in the parking areas or driveways, except as specifically designated by Landlord
from time to time, and shall confine all truck parking, loading and unloading to times and locations specifically designated by Landlord from time to time. Tenant shall require all trucks servicing Tenant to be promptly loaded or unloaded and
removed from the site. Landlord hereby reserves the exclusive right with respect to the use of parking facilities, roadways, sidewalks, driveways, islands and walkways for advertising purposes. Tenant covenants and agrees to enforce the provisions
of this Lease against Tenant’s employees and business invitees. Landlord may from time to time circulate parking stickers for the purpose of identifying motor vehicles of Tenant and Tenant’s employees and/or circulate validation tickets
for the purpose of identifying Tenant’s business invitees. Landlord shall have the right, but not the obligation: (a) to police said parking facilities, (b) to 

  

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provide parking attendants, (c) to cause unauthorized and/or unregistered motor vehicles (but only upon 48 hours verbal or written notice to Tenant for first
time offenders) to be towed away at the sole risk and expense of the owner of such motor vehicles, (d) to designate certain areas of the parking facilities for the exclusive use of motor vehicles having handicapped designations on their license
plates and/or for the exclusive use of visitors to the Project, (e) to use any portion of the parking facilities from time to time and/or to deny access to the same temporarily in order to repair, maintain or restore such facilities or to construct
improvements under, over, along, across and upon the same for the benefit of the site and to grant easements in the parking facilities to any authorities, (f) to adopt and modify from time to time rules and regulations for parking and vehicular
ingress, egress, speed, no parking, no standing, and for times and places for move-in, move-out and deliveries, (g) to designate fire lanes, loading zones and restricted parking from time to time and to tow violators immediately with no notice and
(h) to designate from time to time specific areas for the parking of Tenant’s employees cars. Landlord shall use commercially reasonable efforts to insure that the rules and regulations promulgated by Landlord will be enforced in a
non-discriminatory manner. 
  
 13. FIXTURES AND PERSONAL
PROPERTY. 
  
 13.1 Removal of
Fixtures. Except as provided in Paragraphs 9.1.8 or 13.2 herein, Tenant shall not remove any fixtures belonging to Landlord from the Premises without Landlord’s prior written consent (not to be unreasonably withheld, conditioned or
delayed); provided, however, Tenant shall have the right to sell or dispose of any existing building machinery, equipment or fixtures subject to this Lease which may have become obsolete or unfit for use or which are no longer useful,
necessary or profitable in the conduct of Tenant’s business, so long as (i) the Premises retain its primary use consistent with the Permitted Use, and (ii) Tenant shall have substituted or promptly shall substitute for the property so removed
from the Premises other building machinery, equipment or fixtures not necessarily of the same character but at least of equal quality in the performance of the particular function in question as that of the property so removed unless, in
Tenant’s reasonable opinion, the property so removed was performing an obsolete function and replacement thereof is not necessary or appropriate to maintain the operation or character of the Premises or its overall value without impairment.
Tenant shall give Landlord written notice of each material fixture removed by Tenant. All built-ins and fixtures installed in or attached to the Premises by Tenant must be new or like new when so installed or attached. 
  
 13.2 Trade Fixtures and Personal Property. Except for
the personal property and trade fixtures acquired by Tenant and paid from the Tenant Improvement Allowance in accordance with Paragraph 4.5, the ownership of which shall be governed by Section 9.1.8, any trade fixtures, equipment, stock, inventory,
machines (other than Special HVAC or other built-in machines or machinery, as provided in Paragraph 9.1.8), signs and other personal property of Tenant not permanently affixed to the Premises (“Tenant’s Equipment”) shall remain
the property of Tenant. Landlord agrees that Tenant shall have the right, at any time, and from time to time, to remove any and all of Tenant’s Equipment which it may have stored or installed in the Premises. Tenant, at its sole cost and
expense, immediately shall repair any damage occasioned to the Premises by reason of the removal of Tenant’s Equipment and, upon the last day of the Lease Term or upon earlier termination of this Lease, shall leave the Premises in a neat and
clean 

  

 25 

 
condition, free of debris, and in as good a condition as that existing on the Rent Commencement Date, reasonable wear and tear and damage from casualty or
condemnation excepted, with all Special HVAC and other Building systems in good and operable condition. 
  
 13.3 Taxes on Trade Fixtures and Personal Property. Tenant shall pay before delinquency all taxes, assessments, license fees and
public charges levied, assessed or imposed upon its business operation, as well as upon its trade fixtures, leasehold improvements (including, but not limited to, those Tenant is allowed or required to make in accordance with the provisions of this
Lease), merchandise and other personal property in, on or upon the Premises. If any such items of property are assessed together with property owned by Landlord, then, and in such event, such assessment shall be equitably divided between Landlord
and Tenant. 
  
 13.4 Ownership of
Tenant’s Equipment. All Tenant’s Equipment shall be and remain the property of Tenant during the Lease Term. Tenant shall bear all costs and expenses incurred in installing, removing, storing or disposing of Tenant’s Equipment
pursuant to this paragraph and Paragraph 27 and shall repair at its expense all damage to the Premises caused by the installation and removal thereof, whether effectuated by Tenant or Landlord (as provided in Paragraph 27). 
  
 14. TENANT’S COVENANT. Tenant covenants and agrees that as to its
leasehold estate and use and occupancy of the Premises, Tenant and all persons in possession or holding under Tenant shall conform to and shall not violate any Applicable Law. 
  
 15. INDEMNITY - WAIVER OF SUBROGATION. 
  
 15.1 Indemnification. Tenant shall indemnify, defend, and hold Landlord and its agents, employees,
directors, officers, managers, members, partners, affiliates, independent contractors, and property managers (collectively, “Landlord’s Agents” or “Agents”) harmless from and against any and all claims,
demands, liability, loss or damage, whether for injury to or death of persons or damage to real or personal property, arising out of or in connection with the Premises, Tenant’s use of the Premises, any activity, work, or other thing done or
permitted by Tenant in or about the Building or the Project, or arising from any reason or cause whatsoever in connection with the use or occupancy of the Premises by Tenant or its assignees, licensees or sublesees during the term of this Lease.
This indemnification by Tenant shall include indemnity for the acts or omissions of Landlord and Landlord’s Agents, unless caused by the willful act or gross negligence of the Landlord or its Agents. Tenant shall further indemnify, defend, and
hold Landlord and Landlord’s Agents harmless against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any
act or negligence of Tenant or any officer, agent, employee, guest, or invitee of Tenant, and from and against all costs, attorneys’ fees, expenses, and liabilities incurred as a result of any such claim or any action or proceeding brought
thereon. In any case, action, or proceeding brought against Landlord or Landlord’s Agents by reason of any such claim, Tenant, upon notice from Landlord, shall defend the same at Tenant’s expense by counsel reasonably satisfactory to
Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon, or about the Premises from any cause arising prior to the later of the termination of this Lease or
the date 

  

 26 

 
Tenant is no longer in possession of the Premises (except for such damage or injury caused by Landlord’s or its Agents’ willful misconduct or gross
negligence), and Tenant hereby waives all claims in respect thereof against Landlord and Landlord’s Agents. Tenant’s obligation to indemnify under this paragraph shall include reasonable attorneys’ fees, investigation costs, and other
reasonable costs, expenses, and liabilities incurred by Landlord and Landlord’s Agents. If the ability of Tenant to use the Premises, the Building or the Project is interrupted for any reason, Landlord and Landlord’s Agents shall not be
liable to Tenant for any loss or damages occasioned by such loss of use, except to the extent such loss or damages is caused solely by Landlord’s or its Agents’ willful misconduct or gross negligence, provided that Tenant shall be entitled
to rent abatement. 
  
 15.2 Limitation on
Landlord Liability. Neither Landlord nor Landlord’s Agents shall be liable for loss or damage to any property by theft or otherwise, or for any injury to or damage to persons or property resulting from fire, explosion, falling plaster,
steam, gas, electricity, water, or rain which may leak from any part of the Building or Project or from the pipes, appliances, or plumbing works therein or from the roof, street, or subsurface or from any other place resulting from dampness or any
other cause whatsoever, unless caused by or due solely to the gross negligence or intentional acts of Landlord or Landlord’s Agents. Landlord shall not be liable for any damages arising from any act, omission or neglect of any other tenant in
the Building or Project or of any other third party. Except as otherwise provided herein, neither Landlord nor Landlord’s Agents, shall be liable for interference with the light or other rights or loss of business by Tenant. Tenant shall give
prompt notice to Landlord in case of fire or accidents in the Premises, the Building or the Project or of defects therein or in the fixtures or equipment belonging to Landlord. 
  
 15.3 Waiver of Subrogation. Landlord and Tenant hereby waive any rights each may have against the
other on account of any loss or damage occasioned to Landlord or Tenant, as the case may be, their respective property or the Premises, caused by or resulting from risks insured against under any policies carried by the parties; provided,
however, that this paragraph shall be inapplicable if it would have the effect, but only to the extent that it would have the effect, of invalidating any insurance coverage of Landlord or Tenant. To the extent available, the parties shall
cause each insurance policy obtained by it hereunder to provide a waiver of subrogation. 
  
 16. INSURANCE. 
  
 16.1 Landlord’s Insurance. During the Lease Term, Landlord shall keep and maintain, or cause to be kept and maintained, as part of Operating Expenses, a policy or policies of insurance on the Project insuring the same against
loss or damage by the following risks: fire and extended coverage, vandalism, malicious mischief and sprinkler leakage (if sprinklers are required in the Project under applicable building code provisions, or are installed by Tenant in the absence of
such requirement) in amounts at all times sufficient to prevent Landlord or Tenant from becoming a co-insurer under the terms of the applicable policies, but in any event in amounts not less than the Full Replacement Value of the Project (including
both the Project and any tenant improvements), or if greater, the amount of such insurance Landlord’s lender requires Landlord to maintain. The term “Full Replacement Value” shall mean actual replacement cost, 

  

 27 

 
including changes required by new building codes or ordinances (exclusive of the cost of excavation, foundations and footings). Such insurance shall show, as
a loss payee in respect of the Premises, Landlord, Tenant and any ground lessor or any Lender required to be named pursuant to its mortgage documents, as their interests may appear. Landlord, subject to availability thereof and, as part of Operating
Expenses, shall further insure as Landlord deems appropriate coverage against flood, earthquake, environmental remediation, loss or failure of building equipment, rental loss for a period of eighteen (18) months for periods of repair or rebuild,
worker’s compensation insurance, fidelity bonds for employees employed to perform services and other insurance in types and amounts consistent with commercially reasonable practice. Landlord, as part of the Operating Expenses, shall further
carry General Liability with General Aggregate Amount and Per Occurrence Limit insurance with a single loss limit of not less than Five Million Dollars ($5,000,000) for death or bodily injury, or property damage with respect to the Real Property.

  
 16.2 Tenant’s Insurance.

  
 16.2.1 Comprehensive Liability
Insurance. During the Lease Term, Tenant shall keep and maintain, or cause to be kept and maintained, at Tenant’s sole cost and expense, a policy or policies of comprehensive general public liability insurance, showing, as an additional
insured in respect of the Premises, Landlord, Tenant, any management company retained by Landlord to manage the Premises, any ground lessor and any Lender required to be named pursuant to its mortgage documents. Such policy shall insure against any
and all Claims for injuries to persons, loss of life and damage to property occurring upon, in or about the Premises (including coverage for liability caused by independent contractors of Tenant or Subtenant working in or about the Premises), with
minimum coverage in an amount not less than a Two Million Dollars ($2,000,000) combined single limit with respect to all bodily injury, death or property damage in any one accident or occurrence. In the event of a Claim relating to the Premises, the
amount of any deductible or self-insured retention and/or any award in excess of the policy limits shall be the sole responsibility of Tenant. The insurance shall include (i) personal injury insurance with endorsement deleting the employee liability
exclusions, and employee liability insurance, (ii) a broad form contractual liability endorsement insuring Tenant’s indemnity obligation under Paragraph 15.1, (iii) a products liability coverage endorsement (or in the alternative, a separate
product liability insurance policy), (iv) a boiler and machinery coverage endorsement, and (v) a products completed operations coverage endorsement (or in the alterative, a separate insurance policy that provides coverage for products completed
operations). 
  
 16.2.2 Tenant’s
Risk. Tenant assumes the risk of damage to any fixtures, goods, inventory, merchandise and equipment, and Landlord shall not be liable for injury to Tenant’s business or any loss of income therefrom relative to such damage except as more
particularly heretofore set forth within this Lease. Tenant at Tenant’s cost may carry such insurance as Tenant desires for Tenant’s protection with respect to personal property of Tenant, business interruption or other coverages.

  

 28 

 16.2.3 Other Insurance. In addition to all other insurance required to be carried
by Tenant, Tenant, throughout the Lease Term, shall provide and keep in force at Tenant’s sole cost and expense: 
  
 (a) Such further insurance against such other hazards and risks and in such amounts as the ground lessor or the holder of any mortgage or
deed of trust lien may require under to the terms of such liens that are commercially reasonable; 
  
 (b) Rental value insurance with respect to the Premises, covering risk of loss of rental due to the occurrence of any of the hazards
described above in Paragraph 16.1, in an amount not less than the aggregate requirements for the period of twelve (12) months following the occurrence of the casualty for Rent and premiums on the insurance required to be carried pursuant to this
Paragraph 16; 
  
 (c) Worker’s Compensation
insurance to the full extent required under the law of the State of California; 
  
 (d) Insurance on Tenant’s equipment, personal property and other contents in, on or about the Premises insuring against loss or
damage by all risks covered by “special form” coverage, in amounts equal to ninety percent (90%) of their full replacement value; 
  
 (e) During the period of construction of the Tenant Improvements and any other construction, Builder’s All Risk Insurance with
Completed Operations Coverage; and 
  
 16.3
Insurers; Primary Insurance. All policies of insurance provided for herein shall be on an occurrence basis (except for the product liability coverage, which may be on a claims made basis) and shall be issued by insurance companies with a
general policy holder’s rating of not less than A- and a financial rating of not less than Class XV as rated in the most current available “Best’s” Insurance Reports. Such insurance companies shall be qualified to do business in
the State of California (except for the product liability coverage insurer, which may be a non-admitted insurance provider). All such policies carried by Tenant shall name Landlord, any ground lessor and any Lender (or its successors and assigns) as
additional insureds, and shall be for the mutual and joint benefit and protection of Landlord, Tenant, any ground lessor and Landlord’s first mortgagee or beneficiary. All public liability and property damage policies carried by Tenant shall
contain a provision that Landlord, although named as an insured, nevertheless shall be entitled to recovery under said policies for any loss occasioned to it, its servants, agents and employees by reason of the negligence of Tenant. As often as any
such policy shall expire or terminate, renewal or additional policies shall be procured and maintained by Tenant in like manner and to like extent. All policies of insurance must contain a provision that the company writing said policy will give to
Landlord thirty (30) days notice in writing in advance of any cancellation or lapse or the effective date of any reduction in the amounts of insurance. All public liability, property damage and other casualty policies carried by Tenant shall be
written as primary policies, not contributing with and not in excess of coverage which Landlord may carry. Tenant shall, upon request from Landlord from time to time, immediately deliver to Landlord copies of all insurance policies (including the
declarations pages) in effect 

  

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with respect to Tenant’s business and the Premises. All liability policies shall contain endorsements for cross-liability, fire, legal liability, broad
form contractual liability, employer’s automobile non-ownership, and products completed operation coverage. 
  
 16.4 Blanket Policy. Notwithstanding anything to the contrary contained within this Paragraph 16, Tenant’s obligations to
carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Tenant; provided, however, that Landlord, any ground lessor and Lender shall be
named as an additional insured thereunder as their interests appear, the coverage afforded Landlord will not be reduced or diminished by reason of the use of such blanket policy of insurance, and the requirements set forth herein are otherwise
satisfied. 
  
 16.5 Deductibles. The
deductible amounts, if any, with respect to all insurance, which Tenant is required to maintain hereunder, shall not exceed Twenty-Five Thousand Dollars ($25,000) per claim or occurrence. The amount of the deductibles, if any, within this limitation
shall be a business decision by Tenant. Under no circumstances shall Landlord be required to reimburse Tenant for the amount of any deductible incurred by Tenant in connection with any insured event. 
  
 16.6 Certificates. Upon the execution and delivery of
this Lease and thereafter not less than thirty (30) days prior to the expiration dates of the expiring policies theretofore maintained, Tenant shall deliver to Landlord certificates of insurance with respect to the policies of insurance required by
this Lease or duplicate originals of all such policies. Landlord, upon reasonable notice, may inspect and copy any policies of insurance, and any records relating thereto kept and maintained by Tenant. 
  
 16.7 Adjustment in the Event of Loss. Except as
otherwise provided herein, all insurance proceeds payable with respect to any damage or destruction to the Premises (but not with respect to Tenant’s personal property, it being understood that insurance proceeds allocable to Tenant’s
personal property shall be payable directly to Tenant) shall be payable to Landlord and Tenant, jointly, to be held in an interest bearing account. If Tenant and Landlord undertake to repair said damage in accordance with Article 17 below, the
proceeds shall be made available to Tenant as to the tenant improvements and to Landlord as to the Project, Building and Common Area used to fund the reconstruction. In all other events, the proceeds shall be the sole property of Landlord except
otherwise expressly provided herein, such as insurance proceeds with respect to Tenant’s personal property. Each party agrees to execute and deliver to the other party such releases, endorsements and other instruments as the other party
reasonably may require in order to compromise, adjust or settle any insurance claim which such other party shall be entitled to compromise, adjust or settle pursuant to this paragraph and to enable the other party or its designee to collect such
insurance proceeds as are payable in respect of such claim. 
  
 17. DAMAGE OR DESTRUCTION. 
  
 17.1 Partial Destruction. In the event of a partial destruction of the Building wherein the Premises are located by fire or other perils covered by extended coverage insurance, and if the damage thereto is such that the Building may
be repaired, reconstructed or restored 

  

 30 

 
within a period of six (6) months from the date of the happening of such casualty and Landlord will receive insurance proceeds sufficient to cover the cost
of such repairs (except for any deductible amount provided by Landlord’s policy, which deductible amount if paid by Landlord shall be an Operating Expense, but not to exceed $100,000 per occurrence to be amortized over the remaining Lease
Term), Landlord shall commence and proceed diligently with the work of repair, reconstruction and restoration and this Lease shall continue in full force and effect. In the event insurance proceeds are not sufficient to cover the cost of such
repairs, and Landlord elects not to repair or restore, this Lease shall terminate as of the date of the casualty. 
  
 17.2 Other Destruction. In the event of any damage to or destruction of the Building wherein the Premises are located, other than
as provided in Paragraph 17.1, Landlord may elect to repair, reconstruct and restore the Building, in which case this Lease shall continue in full force and effect. If Landlord elects not to repair then this Lease shall terminate as of date of
destruction. Landlord shall give written notice to Tenant of its election not to repair, reconstruct or restore the Building or Project within the sixty (60) day period following the date of damage or destruction. 
  
 17.3 Termination of Lease. Upon any termination of
this Lease under any of the provisions of this Article, the parties shall be released thereby without further obligation to the other from the date possession of the Premises is surrendered to the Landlord except for items which have theretofore
occurred. 
  
 17.4 Abatement of Rent. In
the event of repair, reconstruction and restoration as herein provided, the rental provided to be paid under this Lease shall be abated proportionately based on the extent to which Tenant’s use of the Premises is impaired during the period of
such repair, reconstruction or restoration, unless Landlord provides Tenant with other space during the period of repair, which in Tenant’s reasonable opinion is suitable for the temporary conduct of Tenant’s business. 
  
 17.5 Limitations on Landlord’s Obligations. The
obligations of Landlord pursuant to this Article are subject to the following limitations: 
  
 (a) Notwithstanding anything to the contrary contained in this Article, should Landlord be delayed or prevented from completing the repair
or restoration of the damage to the Premises after the occurrence of such damage or destruction by reason of acts of God or war, governmental restrictions, inability to procure the necessary labor or materials, strikes, or other uses beyond the
control of Landlord, the time for Landlord to commence or complete repairs shall be extended, provided, at the election of Landlord or Tenant, Landlord shall be relieved of its obligation to make such repairs or restoration and Tenant shall be
released from its obligation under this Lease as of the end of eight (8) months from date of destruction, if repairs required to provide Tenant use of the Premises are not then substantially complete. 
  
 (b) If Landlord is obligated to or elects to repair or
restore as herein provided, Landlord shall be obligated to make repairs or restoration only of those portions of the Building and the Premises which were originally provided at Landlord’s expense. The repair and restoration of items not provide
at Landlord’s expense shall be the obligation of Tenant. In the 

  

 31 

 
event Tenant elected to upgrade certain improvements from the standard normally provided by Landlord, Landlord shall upon the need for replacement due to an
insured loss, provide only the standard Landlord improvements unless Tenant shall elect to again upgrade and pay any additional cost of such upgrades, except to such extent as insurance proceeds which, if received, the excess proceeds are adequate
to provide such upgrades, in addition to providing for basic reconstruction and standard improvements. 
  
 (c) Notwithstanding anything to the contrary contained in this Article, Landlord shall not have any obligation whatsoever to repair,
reconstruct or restore the Premises when the damage resulting from any casualty covered under this Article occurs during the last twelve (12) months of the term of this Lease or any extension hereof, or to the extent that insurance proceeds are not
available therefor, in which case this Lease shall terminate as of the date of the casualty. 
  
 17.6 Tenant’s Right to Terminate. If the Premises are damaged by any peril and Landlord does not elect to terminate this Lease
or is not entitled to terminate this Lease pursuant to this Paragraph 17, then as soon as reasonably practicable, Landlord shall furnish Tenant with the written opinion of Landlord’s architect or construction consultant as to when the
restoration work required of Landlord may be completed. Tenant shall have the right to terminate this Lease in the event any of the following occurs, which right may be exercised only by delivery to Landlord of a written notice of election to
terminate within thirty (30) days after Tenant receives from Landlord the estimate of the time needed to complete such restoration: 
  
 (a) The Premises are damaged by any peril and, in the reasonable opinion of Landlord’s architect or construction consultant, the
restoration of the Premises cannot be substantially completed within one hundred eighty (180) days after the date of such damage; or 
  
 (b) The Premises are materially damaged by any peril within twelve (12) months of the last day of the Lease Term and, in the reasonable
opinion of Landlord’s architect or construction consultant, the restoration of the Premises cannot be substantially completed within sixty (60) days after the date of such damage. 
  
 18. ASSIGNMENT AND SUBLETTING. 
  
 18.1 No Assignment. Tenant shall neither voluntarily nor by operation of law assign, sell, encumber,
pledge or otherwise transfer all or any part of Tenant’s leasehold estate hereunder, or permit any other person (excepting Tenant’s agents and employees) to occupy the Premises or any portion thereof, without Landlord’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or delayed. Consent by Landlord to one or more assignments of this Lease or to one or more sublettings of the Premises shall not constitute a waiver of Landlord’s right to
require consent to any subsequent assignment, subletting or other transfer. If Tenant is a corporation, unincorporated association or partnership, the transfer, assignment or hypothecation of any stock or interest in such corporation, association or
partnership in the aggregate in excess of forty-nine percent (49%) of all outstanding stock or interests, or liquidation thereof, shall be deemed an assignment within the meaning and 

  

 32 

 
provisions of this paragraph; provided, however, the transfer, assignment or hypothecation of any stock in a corporation or partnership which
is a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), shall not be deemed an assignment within the meaning and provisions of this paragraph. The sale of all or substantially all of the
assets of Tenant, or the assignment of the Lease to an entity into which Tenant is merged or with which Tenant is consolidated, shall be deemed an assignment within the meanings and provisions of this paragraph, unless the successor entity has a net
worth equal to or greater than Tenant’s net worth immediately prior to the transfer. Tenant shall reimburse Landlord for all of Landlord’s reasonable costs and attorneys’ fees incurred in conjunction with the processing and
documentation of any required consent to assignment, subletting, transfer, change of ownership or hypothecation of this Lease or Tenant’s interest in and to the Premises not to exceed $1,500. Notwithstanding the foregoing, Tenant shall have the
right, without the consent of Landlord, to assign its rights and obligations pursuant to this Lease to a parent, subsidiary or affiliate, provided that Tenant remains obligated under the Lease. For purposes of this Paragraph, the term
“subsidiary” shall mean and refer to any subsidiary of Tenant in which Tenant owns eighty percent (80%) or more of the voting stock of such subsidiary. For purposes of this Paragraph, the term “affiliate” shall mean and refer to
any entity in which Tenant or parent of Tenant owns eighty percent (80%) or more of the voting stock or ownership interest of such entity. 
  
 18.2 Consent Required. Landlord’s consent may be based upon a determination that similar financial soundness of ownership
shall exist after the proposed assignment or subletting and, provided further, that each and every covenant, condition and obligation imposed upon Tenant by this Lease and each and every right, remedy and benefit afforded Landlord by this Lease and
the underlying purpose of this Lease is not thereby impaired or diminished. The determination by Landlord as to whether consent will be granted in any specific instance may be based on, without limitation, the following factors, which shall be in
Landlord’s reasonable discretion: (a) whether the transferee’s use of the Premises will be compatible with the provisions of this Lease; (b) the financial capacity of the transferee; (c) the business reputation of the transferee; (d) the
quality and type of the business operations of the transferee; and (e) the business experience of the proposed transferee. This list of factors is not intended to be exclusive, and Landlord may rely on such other basis for judgment as may apply from
time to time. 
  
 18.3 Procedure to Obtain
Consent. If Tenant desires at any time to assign this Lease or to sublet the Premises or any portions thereof, it first shall notify Landlord of its desire to do so and shall submit in writing to Landlord (a) the name and legal composition of
the proposed subtenant or assignee; (b) the nature of the proposed subtenant’s or assignee’s business to be carried on in the Premises; (c) the terms and provisions of the proposed sublease or assignment and all transfer documents relating
to the proposed transfer; and (d) such reasonable business and financial information as Landlord may request concerning the proposed subtenant or assignee. Landlord shall notify Tenant of its approval or disapproval of any such request within ten
(10) business days of receipt of the foregoing information and payment. Landlord’s failure to respond within such ten (10) business day period shall be deemed approval by Landlord. The provisions and conditions of any proposed sublease or
assignment must not be inconsistent with any provision of this Lease, and must address all matters contained in this Lease. In addition, the transferee must expressly assume all of the obligations of Tenant under 

  

 33 

 
this Lease. Notwithstanding the assumption of the obligations of this Lease by the transferee, no subletting or assignment, even with the consent of
Landlord, shall relieve Tenant of its continuing obligation to pay the rent and perform all the other obligations to be performed by Tenant hereunder. The obligations and liability of Tenant hereunder shall continue notwithstanding the fact that
Landlord may accept rent and other performance from the transferee. The acceptance of rent by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any assignment or
subletting. 
  
 18.4 Advertising. In no
event shall Tenant display on or about the Premises any signs for the purpose of advertising the Premises for assignment, subletting or other transfer of rights, without Landlord’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed. It shall not be unreasonable for Landlord to withhold its consent if, at such time, it is advertising any other space at the Project for lease, sublease, assignment or other transfer. 
  
 18.5 Writing Required. Each permitted assignment or
sublease shall be consummated by an instrument in writing executed by the transferor and transferee in form satisfactory to Landlord. Each assignee and subtenant shall agree in writing for the benefit of the Landlord herein to assume all obligations
of Tenant hereunder, including the payment of all amounts due or to become due under this Lease directly to the Landlord. One executed copy of such written instrument shall be delivered to the Landlord. 
  
 18.6 Transfer Premiums. If Tenant assigns or sublets
its rights under this Lease, Tenant shall pay to Landlord as Additional Rent, after Tenant has recovered any relevant leasing commissions, costs of tenant improvements and other expenses of the assignment or sublease, fifty percent (50%) of such
excess consideration due and payable to Tenant from said assignment or sublease to the extent said consideration exceeds the Rent or a pro rata portion of the Rent, in the event only a portion of the Premises is sublet. 
  
 19. NO ENCUMBRANCE. Without Landlord’s prior written consent,
Tenant shall not mortgage, encumber or hypothecate its interest in this Lease, the Premises, the Building or the Project, and any attempt by Tenant to do so shall be a default hereunder, and at Landlord’s option, shall terminate this Lease.

  
 20. HAZARDOUS MATERIALS. 
  
 20.1 Hazardous Materials. Tenant shall not use,
store, dispose of or permit to remain on the Premises, the Building, the Project, the Land, or any adjacent property other than in the normal course of its business and in compliance with all applicable laws, any solid, liquid or gaseous matter or
any combination thereof, which is or may become, hazardous, toxic or radioactive including, but not limited to, any substance, gas, or waste, which is included in the definition of “hazardous substance,” “toxic substance,”
“hazardous waste,” or “toxic waste” under any federal, state, or local law, ordinance, or regulation, including those materials identified in Sections 66680 through 66685 of Title 22 of the California Administrative Code,
Division 4, Chapter 30 (as may be amended from time to time) or any material which, if 

  

 34 

 
discharged, leaked or emitted or permitted to be discharged, leaked or emitted into the atmosphere, the ground or any body of water, does or may (i) pollute
or contaminate the same, or (ii) adversely affect (A) the health or safety of persons, whether on the Premises or anywhere else, (B) the condition, use or enjoyment of the Premises or anywhere else, or (C) the Premises, the Building, the Project or
any of the improvements thereon (all of the foregoing collectively referred to herein as “Hazardous Materials”). 
  
 20.2 Testing. At reasonable times and upon reasonable prior notice, prior to the expiration or earlier termination of the Lease
Term, Landlord shall have the right to conduct (a) hazardous material and waste investigation(s) of the Premises and (b) if Landlord has reasonable cause to believe that any contamination exists on, in, under, or around the Building or the Premises,
such other tests of the Premises and the Building as Landlord may deem necessary or desirable to demonstrate whether contamination has occurred as a result of Tenant’s use of the Premises. Tenant shall be solely responsible for and shall
defend, indemnify and hold the Landlord, its Agents and contractors harmless from and against any and all Claims that are attributable to Tenant’s use and occupancy of the Premises, arising out of or in connection with any removal, clean up,
restoration and materials required hereunder to return the Premises and any other property of whatever nature to their condition existing prior to the time of any such contamination, except for Claims caused by Landlord’s or its Agents’
gross negligence or willful misconduct. Tenant shall pay for the cost of the investigations and other tests of the Premises only if it is shown that Tenant is responsible for such contamination. 
  
 20.3 Duty to Dispose. Tenant shall not keep any
trash, garbage, waste or other refuse on the Premises except in sanitary containers and shall regularly and frequently remove the same from the Premises. Tenant shall keep all incinerators, containers or other equipment used for the storage or
disposal of such matter in a clean and sanitary condition. Tenant shall properly dispose of all sanitary sewage and shall not use the sewage disposal system of the Building or the Project (i) for the disposal of anything except sanitary sewage, or
(ii) for disposal of sewage in excess of the lesser of the amount (A) reasonably contemplated by the uses permitted under this Lease, or (B) permitted by any governmental entity. 
  
 20.4 Hazardous Materials Laws. Tenant, at Tenant’s own cost and expense, shall comply with all
existing and any hereinafter enacted federal, state or local laws pertaining to or governing Hazardous Materials laws. Tenant, at Tenant’s own cost and expense, shall make all submissions to, provide all information to and comply with all
requirements of any appropriate governmental authority (“Authority”) under all federal, state or local laws pertaining to or governing Hazardous Materials. In particular, Tenant shall comply with all laws relating to the storage,
use and disposal of Hazardous Materials. Should any Authority require that a clean up or remediation plan be prepared or that a clean up or any other remediation action be undertaken because of any spills or discharges of Hazardous Materials at the
Premises or on the Premises or any adjacent property that occur during the Lease Term or after expiration of the Lease Term as a result of Tenant’s use of the Premises, then Tenant, at Tenant’s own expense, shall prepare and submit the
required plans and financial assurances and carry out the approved plans. At no expense to Landlord, Tenant promptly shall provide all information requested by Landlord for preparation of affidavits required by Landlord or for Landlord’s own
information, 

  

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to determine the applicability of the Hazardous Materials laws to the Premises and shall execute affidavits promptly when requested to so by Landlord.

  
 20.5 Tenant Indemnification. Tenant
shall indemnify, defend and hold harmless Landlord and Landlord’s Agents from and against (i) Claims in connection with or arising out of any release, spill or discharge of Hazardous Materials due to, contributed to or caused by the activities
of Tenant, Tenant’s Agents, or parties in contractual relationship with Tenant or any of them; and (ii) all Claims arising out of Tenant’s failure to provide all information, make all submissions and take all steps required by any
Authority, under any federal, state or local laws pertaining to or governing Hazardous Materials laws or any other environmental law. Tenant’s obligations and liabilities under this paragraph shall survive the expiration or earlier termination
of this Lease. Without limiting the foregoing, if the release, spill, leakage, or discharge of any Hazardous Materials on or in the Premises or the Building or any adjacent property, caused or permitted by Tenant results in any contamination of the
Premises or the Building or any adjacent property, Tenant shall promptly take all actions at its sole expense as are necessary to return the Premises or the Building or any adjacent property, to the condition existing prior to the time of such
contamination, provided that Landlord’s approval of such action shall first be obtained, which approval shall not unreasonably be withheld, delayed or conditioned so long as such actions would not potentially have any material adverse
long-term or short-term effect on the Premises or the Building. Notwithstanding the foregoing, the indemnification herein shall not apply to the initial introduction of Hazardous Materials on or to the Premises by anyone other than the Tenant from
and after the date that Tenant is neither the “Tenant” hereunder nor in possession of the Premises (“Tenant Relinquishment Date”); provided, however, that the Tenant shall bear the burden of proof that the
initial introduction of such Hazardous Materials (i) occurred subsequent to the Tenant Relinquishment Date, (ii) did not occur as a result of any act or inaction of the Tenant, and (iii) did not occur as a result of a continuing migration or release
of any Hazardous Materials initially introduced, stored, or manufactured on the Premises prior to the Tenant Relinquishment Date. Notwithstanding anything contained herein, neither Tenant nor any of Tenant’s employees, agents, officers,
contractors, directors and shareholders (“Tenant Party”) shall be liable or responsible for any pre-existing Hazardous Materials in, on, under or about the Premises, the Building, the Project or any adjacent property, prior to the Lease
Commencement Date, or any migration of Hazardous Materials in, on, under or about the Premises, the Building, the Project or any adjacent property, at any time, unless caused by Tenant or a Tenant Party. 
  
 20.6 Obligation to Remediate Upon Expiration of
Lease. Tenant shall surrender the Premises at the expiration or earlier termination of this Lease free of any Hazardous Materials or contamination and free and clear of all judgments, liens, licenses, restrictions or encumbrances relating
thereto and, at its own cost and expense, shall repair all damage and clean up or perform any remedial action necessary relating to any Hazardous Materials or contamination caused by Tenant’s operation. Tenant, at its sole cost and expense,
shall, following Landlord’s request, remove any alterations or improvements that may be contaminated or contain Hazardous Materials. 
  
 20.7 Landlord Indemnity. To the best of Landlord’s knowledge, except as may be in the possession of Nektar Therapeutics or any
other tenant at the Project, no Hazardous 

  

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Materials are present in, on, under or about the Premises or the Project, and no action, proceeding, or claim is pending or threatened concerning any
Hazardous Materials or pursuant to any Hazardous Materials laws or any other environmental law. Landlord shall defend, indemnify and hold Tenant and the Tenant Parties harmless from and against all claims, penalties, expenses and liabilities,
including attorneys’ and consultants’ fees and costs, arising out of or caused in whole or in part, directly or indirectly, by or in connection with any Hazardous Materials in, on, under or about the Premises or Project, except to the
extent the same results from Tenant’s or Tenant’s Agents’ release or admission of Hazardous Substances in or about the Premises in violation of Hazardous Materials Laws. For the purposes of the indemnity provisions hereof, any acts or
omissions of Landlord or Landlord’s employees, agents, officers, contractors, directors and shareholders (whether or not they are negligent, intentional or unlawful) shall be strictly attributable to Landlord. Landlord’s obligations under
this Paragraph 20.7 shall survive the termination or expiration of this Lease. 
  
 21. CONDEMNATION. 
  
 21.1 Termination of Lease. If the Premises or any portion thereof are Taken under the power of eminent domain, or sold by Landlord under the threat of the exercise of such power, this Lease shall terminate as
to the part so Taken as of the date that the condemning authority takes possession. This Lease shall remain in full force and effect with respect to the remaining portion of the Premises. If any part of the Premises is taken or sold under such
threat, and Tenant reasonably determines the loss of such portion of the Premises materially affects Tenant’s ability to conduct its business, either Landlord or Tenant may terminate this Lease as of the date that the condemning authority takes
possession by delivery of written notice of such election within twenty (20) days after such party has been notified of the Taking or, in the absence thereof, within twenty (20) days after the condemning authority shall have taken possession.
Notwithstanding the foregoing, Tenant’s right to terminate this Lease under the preceding sentence is contingent upon all leasehold mortgages (if any) of Tenant being paid in full. 
  
 21.2 Rent Reduction; Tenant’s Obligation To Repair. If this Lease is not terminated by Landlord
or Tenant, it shall remain in full force and effect as to the portion of the Premises remaining; provided, however, that the Monthly Rent shall be reduced by the proportion that the floor area of the Building taken bears to the
original floor area of the Building. In such event Tenant, at Tenant’s sole cost and expense, but subject to the availability of condemnation proceeds therefor, shall restore the Premises to a complete unit of like quality and character, except
as to size, as existed prior to the date on which the condemning authority took possession. 
  
 21.3 Award. All awards for the Taking of any part of the Premises or proceeds from the sale made under the threat of the exercise
of the power of eminent domain (other than the portions of such award expressly attributed by the governmental authority to the diminution in value of the leasehold estate which portion, subject to the rights of any ground lessor, shall be the
property of Tenant) shall be the property of Landlord, whether made for the Taking of the fee, or as severance damages; provided, however, that Tenant shall be entitled to any award 

  

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which is made for damage to Tenant’s trade fixtures and removable personal property and to a portion of the award necessary to restore the Premises as
provided in Paragraph 21.2 above. 
  
 22. DEFAULT
PROVISIONS. 
  
 22.1 Events of
Default. The occurrence of any of the following shall constitute a default hereunder (“Default”): 
  
 22.1.1 The failure of Tenant to pay or cause to be paid when past due, within five (5) days after written notice, any Rent, monies or
other charge required by this Lease to be paid by Tenant; 
  
 22.1.2 The abandonment of the Premises by Tenant for a period in excess of sixty (60) days during any single twelve (12) month period; 
  
 22.1.3 Any default (after expiration of any applicable notice and cure period) by Tenant under the terms of
any leasehold mortgage; 
  
 22.1.4 The failure of
Tenant, within thirty (30) days after notice, to do or cause to be done any act required by this Lease, or the failure to observe and perform any other provision of this Lease to be observed or performed by Tenant, other than payment of Rent, monies
or charges required by this Lease. If a cure cannot be made within thirty (30) days, Tenant shall have an additional reasonable amount of time necessary to complete the cure using its diligent efforts. Notwithstanding the foregoing, if any such
failure on the part of Tenant affects the health or safety of others, or would result in the destruction of property, Tenant shall immediately begin to cure and shall use its diligent efforts in pursuing said cure to completion; 
  
 22.1.5 Tenant’s causing or permitting, without the
prior written consent of Landlord, any act for which this Lease requires Landlord’s prior consent, or if this Lease prohibits such act, and Tenant does not reverse or undo such act within ten (10) days after written notice from Landlord of such
violation. Notwithstanding the foregoing, if any such act on the part of Tenant affects the health or safety of others, or would result in the destruction of property, Tenant shall immediately begin to cure and shall use its diligent efforts in
pursuing said cure to completion; 
  
 22.1.6 Any
act of bankruptcy caused, suffered or permitted by Tenant or, if Tenant is a partnership, any general partner of Tenant. For purposes of this Lease, an “act of bankruptcy” shall include the following: (i) any general assignment or general
arrangement for the benefit of creditors; (ii) the filing of any petition by or against Tenant to have Tenant adjudged a bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy, unless such petition is filed
against Tenant and the same is dismissed within ninety (90) days; (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease; or
(iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease. 
  

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 22.2 Rights of Landlord. Upon the occurrence, and during the continuance, of any
Default, and in addition to any or all other rights or remedies of the Landlord hereunder or by law, Landlord, without further notice or demand of any kind to Tenant or any other person, shall have the following rights and remedies: 
  
 22.2.1 Landlord has the remedy described in California Civil
Code Section 1951.4 (Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover rent as it becomes due, if Tenant has right to sublet or assign, subject only to reasonable limitations). Landlord may continue
this Lease in full force and effect and enforce all Landlord’s rights and remedies under this Lease, including the right to recover the Rent as it becomes due and any other amount necessary to compensate Landlord for all detriment proximately
caused by Tenant’s failure to perform its obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom. Landlord may sue monthly, annually or after such equal or unequal periods as Landlord
desires for such amounts due. 
  
 22.2.2 Landlord
(whether Landlord elects to continue this Lease in effect or terminate this Lease and Tenant’s right to possession hereunder) may reenter the Premises or take possession pursuant to legal proceedings or pursuant to any notice provided by law,
and thereafter collect rent from existing sub-tenants of the Premises, if any, and(or) relet the Premises, in whole or in part, to third parties for Tenant’s account at such rent and upon such conditions and for such term as Landlord sees fit.
Tenant shall pay to Landlord all costs actually and reasonably incurred in reletting the Premises or improvements thereon, including, without limitation, broker’s commissions, repairs, expenses of remodeling required by the reletting and like
costs. Landlord may do all other acts necessary to maintain or preserve the Premises as Landlord deems reasonable and necessary, including removal of all persons and property, which property may be removed and stored in a public warehouse or
elsewhere at the cost of and for the account of Tenant. If Landlord shall elect to so relet, rentals received by Landlord from such reletting shall be applied in the following order: (i) to the payment of any indebtedness other than Rent due
hereunder from Tenant to Landlord; (ii) to the payment of any cost of such reletting; (iii) to the payment of the cost of any alterations and repairs; (iv) to the payment of Rent due and unpaid hereunder; (v) to the payment of any obligations of
Tenant under any leasehold mortgage; and (vi) the residue, if any, shall be held by Landlord and applied in payment of future Rent as the same may become due and payable hereunder. If reletting results in the actual payment of rentals at less than
the Rent payable during that month by Tenant as required hereunder, Tenant shall pay such deficiency to Landlord from time to time immediately upon demand therefor by Landlord. 
  
 22.2.3 Landlord, by written notice to Tenant, may terminate this Lease and Tenant’s right to possession
of the Premises. No act by Landlord other than giving written notice to Tenant shall terminate this Lease. Acts of maintenance, reletting, or the appointment of a receiver on Landlord’s initiative shall not terminate this Lease. If Landlord
elects to terminate this Lease, Landlord may recover all of the following: 
  
 (a) The worth at the time of award of the unpaid Rent which had been earned at the time of termination. “Worth at the time of award” shall be computed by allowing interest to accrue at the Default Rate from
the first day a breach occurs. 
  

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 (b) The worth at the time of award of the amount by which the unpaid Rent which would
have been earned after termination until the time of award exceeds the amount of such rental loss that the Tenant proves could have been reasonably avoided. “Worth at the time of award” shall be determined by allowing interest at the
Default Rate from the first day a breach occurs. 
  
 (c) 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 Tenant proves could be reasonably avoided. “Worth at the time
of award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank situated nearest the Premises at the time of award plus six percent (6%). 
  
 (d) Any other amount necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom including, but not limited to, expenses of reletting, attorneys’ fees, costs of alterations and
repairs, recording fees, filing fees and any other expenses customarily resulting from obtaining possession of Premises and releasing. 
  
 (e) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by
applicable California law. 
  
 22.2.4 If Tenant
shall be in Default in the observance or performance of any term or covenant on Tenant’s part to be observed or performed under this Lease, Landlord may perform (but is not obligated to do so) the same for the account of Tenant, and if Landlord
makes expenditures or incurs any obligation for the payment of money thereby, including, but not limited to, attorneys’ fees in instituting, prosecuting or defending any action or proceeding, such sums paid or obligations incurred, with
interest thereon at the Default Rate, shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to Landlord (without offset) immediately upon demand therefor. 
  
 22.2.5 Landlord, where permitted by applicable law, may seek to restrain any breach or threatened breach of
any of Tenant’s obligations hereunder and/or may exercise any and all rights and remedies of a secured party under applicable law with respect to any property in which Landlord is granted a security interest under this Lease or otherwise.

  
 22.3 Cumulative Remedies. Any right or
remedy of Landlord under this Lease and any other right or remedy that Landlord may have at law, in equity or otherwise upon any Default or breach of any of the Tenant’s obligations hereunder shall be distinct, separate and cumulative rights or
remedies and no right or remedy, whether exercised or not, shall be deemed to be in exclusion of any other. 
  
 22.4 Determining Rent on Default; Waiver; Security Interest. 
  
 22.4.1 For all purposes of this Paragraph 22, Rent, except Monthly Rent, shall be computed on the basis of
the amount thereof accruing during the highest twelve (12) month period in the immediately preceding sixty (60) month period, except that if it becomes 

  

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necessary to compute such Rent before a sixty (60) month period has occurred, then Rent shall be computed on the basis of the amount accruing during such
shorter period. 
  
 22.4.2 The waiver by Landlord
of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition on any subsequent breach by Tenant. The acceptance of Rent hereunder by Landlord after any such breach shall not
be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding breach
at the time of acceptance of such Rent. No covenant, term or condition of this Lease or breach thereof by Tenant shall be deemed to have been waived by Landlord unless such waiver is in a writing executed by Landlord. 
  
 22.4.3 Tenant hereby grants and assigns to Landlord a
security interest in all accounts, inventory, fixtures, equipment and personal property of Tenant originating from or hereafter placed in, on or about the Premises to secure each and every obligation of Tenant under this Lease. Upon demand from
Landlord, Tenant shall execute, acknowledge and deliver such documents or instruments as reasonably may be required by Landlord to perfect its security interest in the above described property. 
  
 22.5 Curing of Default. Notwithstanding any other
provision of this Paragraph 22, if an event of Default, other than for the payment of Rent or other monies owing from Tenant to Landlord hereunder, is of such a nature that the same cannot be cured upon demand by Landlord as specified in any written
notice relating thereto, then such event of Default shall be deemed to be cured if Tenant upon such notice shall have commenced to cure such Default and shall continue thereafter with all due diligence to so cure and does so complete the same within
a reasonable period of time. 
  
 22.6
Landlord’s Default. If Landlord shall neglect or fail to perform or observe any of the covenants, provisions or conditions contained in this Lease on its part to be performed or observed within thirty (30) days after written notice of
default (or if more than thirty (30) days shall be required because of the nature of the default, if Landlord shall fail to proceed diligently to cure such default after written notice thereof), Landlord shall be responsible to Tenant for any
foreseeable and unavoidable damages sustained by Tenant as a result of Landlord’s breach. 
  
 22.7 Tenant’s Right to Perform. If, after such notice to Landlord and Assignee (as defined in Paragraph 22.9 below), if any,
Landlord and Assignee shall fail to cure such default as provided herein, Tenant shall have the right, but not the obligation, to cure any such default at Landlord’s sole cost and expense including in such expenditure all costs and
attorneys’ fees incurred to cure such default or breach of Lease. Tenant shall have no right to terminate this Lease for any such default by Landlord unless otherwise specifically provided in this Lease. 
  
 22.8 Abatement. Except as expressly otherwise
provided herein, Landlord and Tenant hereby waive the provisions of any statutes, regulations, ordinances, or court decisions which relate to the abatement of rent or termination of leases when leased property is damaged or destroyed and agree that
such event shall be exclusively governed by the terms of this Lease. 
  

 41 

 22.9 Tenant to Notify Mortgagees. If Landlord’s estate in the Premises or any
part thereof is at any time subject to a mortgage or a deed of trust, and if this Lease or the rentals due from Tenant hereunder are assigned to such mortgagee, trustee or beneficiary (called an “Assignee” for purposes of this paragraph 22
only) and if Tenant is given written notice thereof, including the post office address of such Assignee, Tenant shall give written notice to such Assignee, specifying the default of Landlord in reasonable detail and affording such Assignee a
reasonable opportunity to render performance for and on behalf of Landlord. If and when the Assignee has rendered performance on behalf of Landlord, such default shall be deemed cured. 
  
 23. LIMITATION OF LANDLORD’S LIABILITY. If Landlord is in default of this Lease, and as a consequence, Tenant
recovers a money judgment against Landlord, the judgment shall be satisfied only out of the proceeds of sale received on execution of the judgment and levy against the right, title, and interest of Landlord in the Premises, and out of rent or other
income from the Premises receivable by Landlord or out of the consideration received by Landlord from the sale or other disposition of all or any part of Landlord’s right, title, and interest in the Premises. Neither Landlord nor
Landlord’s Agents shall be personally liable for any deficiency except to the extent liability is based upon willful and intentional misconduct. If Landlord is a partnership, joint venture, or limited liability company, the partners or members
of such partnership or limited liability company, as the case may be, shall not be personally liable, and no partner or member of Landlord (or of any affiliated entity) shall be sued or named as a party in any suit or action, or service of process
be made against any partner or member of Landlord (or of any affiliated entity), except as may be necessary to secure jurisdiction of the partnership, joint venture, or limited liability company or to the extent liability is caused by willful and
intentional misconduct. If Landlord is a corporation, the shareholders, directors, officers, employees, and/or agents of such corporation shall not be personally liable, and no shareholder, director, officer, employee, or agent of Landlord shall be
sued or named as a party in any suit or action, or service of process be made against any shareholder, director, officer, employee or agent of Landlord, except as may be necessary to secure jurisdiction of the corporation. No partner, member,
shareholder, director, employee, or agent of Landlord (or of any affiliated entity) shall be required to answer or otherwise plead to any service of process and no judgment will be taken or writ of execution levied against any partner, member
shareholder, director, employee, or agent of Landlord. 
  
 24.
SUBORDINATION-ATTORNMENT. 
  
 24.1
Tenant to Give Evidence of Subordination. Upon written request of Landlord, or any mortgagee or deed of trust beneficiary, or lessor of Landlord, Tenant in writing shall subordinate its rights hereunder to the lien of any mortgage or deed of
trust now or hereafter in force against the land and buildings comprised of the Premises of which the Premises are a part, and upon any building hereafter placed upon the Premises, and to all advances made or hereafter to be made upon the security
thereof; provided that Tenant obtains a non-disturbance agreement reasonably acceptable to Tenant from any such mortgagee or deed of trust beneficiary. Landlord agrees that as a condition precedent to delivery of possession of the Premises to
Tenant, Landlord shall deliver to Tenant a fully executed non-disturbance and attornment from any mortgagee or deed of trust beneficiary of record as of the date of the mutual execution of this Lease. 
  

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 24.2 Attornment. If any proceedings are brought for foreclosure, or in the event
of the exercise of the power of sale under any mortgage or deed of trust made by or to which the Landlord is subject covering the Premises, Tenant shall attorn to the purchaser or lessor under said lease upon any such foreclosure, sale or lease
termination and recognize such purchaser or lessor as the Landlord under this Lease; provided, however, that the purchaser or lessor shall acquire and accept the Premises subject to this Lease and execute a subordination,
non-disturbance and attornment agreement as a condition to Tenant’s attornment. 
  
 24.3 Execution of Documents by Tenant. Tenant, upon request of any party in interest, shall duly execute in recordable form such
instruments and certificates as are necessary to carry out the intent of this Paragraph 24. 
  
 25. QUIET POSSESSION. Subject to the provisions and matters referred to in Paragraph 14 of this Lease, Tenant, upon paying the Rent and performing the covenants and conditions of this Lease, may quietly have,
hold and enjoy the Premises during the Lease Term. 
  
 26.
MISCELLANEOUS. 
  
 26.1 Captions and
Terms. The captions to all paragraphs of this Lease are for convenience only, are not a part of this Lease, and do not in any way limit or amplify the terms and provisions of this Lease. The masculine pronoun used herein shall include the
feminine or the neuter as the case may be, and the use of the singular shall include the plural when appropriate. 
  
 26.2 Obligations of Successors. Each of the provisions hereof are to be construed as covenants and agreements as though the words
importing such covenants and agreements were used in each separate paragraph hereof, and all of the provisions hereof shall bind and inure to the benefit of the parties hereto, and their respective heirs, legal representatives, successors and
assigns (subject to any restrictions on assignment). 
  
 26.3 No Joint Venture. Nothing contained in this Lease shall be deemed or construed as creating a partnership, joint venture or any other relationship between the parties hereto other than Landlord and Tenant according to the
provisions contained herein, or cause Landlord to be responsible in any way for the debts or obligations of Tenant or any other party. 
  
 26.4 Authority of Tenant. If Tenant is a corporation, the persons executing this Lease on behalf of Tenant hereby covenant and
warrant that they have the authority to bind the Tenant to this Lease. Tenant hereby represents and warrants that Tenant is a corporation in good standing in the state of its origination, all steps have been taken prior to the date hereof to qualify
Tenant to do business in the State of California, all franchise and corporate taxes have been paid to date, and all future forms, reports, fees and other documents necessary to comply with applicable laws will be filed when due. 
  
 26.5 No Right of Redemption. Tenant hereby expressly
waives any and all rights of redemption granted by or under any present or future laws in the event of Tenant being lawfully evicted or dispossessed for any cause, or in the event of Landlord obtaining possession of the premises by reason of a
Default by Tenant hereunder. 
  

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 26.6 Holding Over. If Tenant remains in possession of the Premises (a) after the
expiration of the Lease Term without executing a new lease, or (b) after Landlord has declared a forfeiture by reason of a Default by Tenant, then such holding over shall be construed as a tenancy at sufferance from month-to-month, subject to all
the conditions, provisions and obligations of this Lease insofar as they are applicable to a month-to-month tenancy, except that, beginning four (4) months after the initial date of such hold over, the Monthly Rent shall be increased to one hundred
twenty-five percent (125%) of the Monthly Rent last due, payable monthly in advance. Notwithstanding the foregoing, if Tenant fails to vacate the Premises and fulfill all of its obligations hereunder at the end of the Lease Term, Tenant also shall
be liable for all damages incurred by Landlord by reason of the latter’s inability to deliver possession of the Premises or any portion thereof to any other person; provided, however, Tenant shall not be liable for consequential
damages to Landlord unless and until Tenant has received thirty (30) days prior notice that the Premises has been leased to such other person, and Tenant does not vacate the Premises within such thirty (30) day period. 
  
 26.7 Brokers. Except for Staubach and BT Commercial
Real Estate, who shall be compensated by Landlord under separate agreements, Tenant and Landlord each warrants and represents that it has had no dealings with any real estate brokers or agents in connection with the negotiation of this Lease, and it
knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Tenant and Landlord each shall defend, indemnify and hold the other harmless from and against any and all Claims by any person for any
finder’s fees or brokerage fees incurred as a result of any action by such indemnifying party. 
  
 26.8 Non-Merger. There shall be no merger of this Lease, or of the leasehold estate created hereby, with the fee estate in and to
the Premises by reason of the fact that this Lease, or the leasehold estate created hereby, or any interest in either thereof, may be held directly or indirectly by or for the account of any person who shall own the fee estate in and to the
Premises, or any portion thereof, and no such merger shall occur unless and until all persons at the time having any interest in the fee estate and all persons having any interest in this Lease or the leasehold estate, shall join in a written
instrument effecting such merger. 
  
 26.9
Recordation of Lease. Neither Landlord nor Tenant shall record this Lease or any other document relating to this Lease without the prior written consent of the other party. 
  
 26.10 Notices. No notice, request, demand, instruction or other document to be given hereunder to any
party shall be effective for any purpose unless personally delivered to the person or delivered by reputable overnight courier, to the addresses set forth in Paragraph 2 above. Notice shall be deemed to have been given when received, if by personal
delivery, or the next business day after the date of the courier’s receipt of mailing, if by reputable overnight courier. Notice shall not be deemed given unless and until, under the preceding sentence, notice shall be deemed given to all
addressees to whom notice must be sent. The addresses and addressees for the purpose of this paragraph may be changed by giving written notice of such change in the manner herein provided for giving notice. Unless and until such written notice is
received, the last address and addressee as stated by written notice, or provided herein if no 

  

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written notice of change has been sent or received, shall be deemed to continue in effect for all purposes hereunder. 
  
 26.11 Attorneys’ Fees. If any action or
proceeding (judicial or non-judicial) is commenced to enforce or interpret this Lease, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs, together with all other costs and fees incurred by it in attempting
to enforce the other party’s obligations and/or to protect its rights under this Lease, whether or not such action or proceeding proceeds to judgment. 
  
 26.12 No Other Agreements. This Lease represents the entire agreement between the parties hereto and supersedes any and all
previous written or oral agreements or discussions between said parties and any other person or legal entity concerning the transactions contemplated herein. There are no representations, warranties or agreements except as specifically set forth in
this Lease or to be set forth in the instruments or other documents delivered or to be delivered hereunder. 
  
 26.13 Amendments. No change in or addition to, or waiver or termination of this Lease, or any part hereof, shall be valid unless in
writing and signed by or on behalf of the parties hereto. 
  
 26.14 No Third Party Benefit. The parties acknowledge and agree that the provisions of this Lease are for the sole benefit of Landlord and Tenant, and not for the benefit, directly or indirectly, of any other
person or entity, except as otherwise expressly provided herein. 
  
 26.15 Exhibits. Each of the Exhibits attached hereto is hereby incorporated herein by this reference. 
  
 26.16 Severability. If any one or more of the provisions of this Lease are held to be invalid, illegal or unenforceable in any
respect or for any reason, the validity, legality and enforceability of such provision or provisions in every other respect and of the remaining provisions of this Lease shall not in any way be impaired. 
  
 26.17 Governing Law/Jurisdiction. This Lease shall,
in all respects, be interpreted, enforced and governed by and under the laws of the State of California. 
  
 26.18 Venue. The parties hereby expressly acknowledge and agree that if an action is brought with respect to this Lease, sole and
proper venue for such action shall be in San Mateo, County, California. 
  
 26.19 Time. Time is hereby expressly made of the essence with respect to each and every term and condition of this Lease. 
  
 26.20 Entry By Landlord. 
  
 26.20.1 Inspection. Tenant shall permit Landlord and Landlord’s agents to enter the Premises at
all reasonable times after reasonable prior notice not less than 

  

 45 

 
twenty-four (24) hours in advance for the purpose of inspecting the same and for the purpose of exercising any of its other rights or performing any of its
obligations under this Lease. 
  
 26.20.2 Sale
or Lease of Premises. Landlord may at any time place on or about the Premises any ordinary “For Sale” signs, and at any time within ten (10) months prior to the expiration of this Lease, place on or about the Premises any usual or
ordinary “For Lease” signs. Landlord may enter the Premises at reasonable times upon reasonable prior notice not less than twenty-four (24) hours in advance during the Lease Term to show the Premises to prospective tenants, lenders,
investors, or purchasers. In exercising its rights under this Paragraph 26.20.2, Landlord shall not unreasonably interfere with Tenant’s use or occupancy of the Premises. 
  
 26.20.3 Waiver. Landlord shall be permitted to enter upon the Premises in accordance with the terms
hereof for any of the purposes stated herein without any liability to Tenant for any loss of occupation or quiet enjoyment resulting therefrom, except resulting from Landlord’s or its Agents’ gross negligence or willful misconduct, and
Tenant hereby waives any claim for abatement of rent or for damages for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment, or any other loss occasioned thereby. 
  
 26.21 Estoppel Certificates. Tenant shall at any time
during the Lease Term, within ten (10) business days after written request from Landlord, execute and deliver to Landlord a statement in writing in the form of the document attached hereto as Exhibit F, or any reasonable equivalent requested
by Landlord, certifying that this Lease is unmodified and in full force and effect or, if modified, stating the nature of such modification. Tenant’s statement shall include such other details as may be reasonably requested by Landlord. Any
such statement may be relied upon conclusively by any existing or prospective purchaser or lender. Tenant’s failure to deliver such statements within such time shall be conclusive upon Tenant that this Lease is in full force and effect, except
to the extent any modification has been represented in writing by Landlord to such prospective purchaser or lender, that there are no uncured defaults in Landlord’s performance, and that not more than one month’s rent has been paid in
advance. 
  
 26.22 No Surrender. Except to
the extent expressly provided for herein, no event or occurrence during the Lease Term, whether foreseen or unforeseen, however extraordinary, shall permit Tenant to surrender or terminate this Lease or shall relieve Tenant from any of its
obligations hereunder, and Tenant waives any rights now or hereafter conferred upon it by statute or otherwise, except any rights set forth herein, to surrender or terminate this Lease or to claim any abatement or suspension of Rent or other sums
payable hereunder on account of any such event or occurrence. 
  
 26.23 Consent of Landlord and Tenant. Whenever Landlord or Tenant is required to give its consent or approval to any action on the part of the other, such consent or approval shall not be unreasonably withheld,
conditioned or delayed, unless otherwise expressly provided. In the event of failure to give any such consent, the other party hereto shall be entitled to specific performance at law and shall have such other remedies as are reserved to it under
this Lease; provided, however that in no event shall Landlord or Tenant be responsible in monetary 

  

 46 

 
damages for such failure to give consent unless said consent is withheld maliciously or in bad faith. 
  
 26.24 Binding Effect. This Lease shall not be
effective until fully executed by both Landlord and Tenant. 
  
 26.25 Covenants and Conditions. Each provision and obligation set forth in this Lease to be performed by Tenant shall be deemed both a covenant and a condition. 
  
 26.26 Furnishing of Financial Statements and
Tenant’s Representations. To induce Landlord to enter into this Lease, Tenant agrees, at any time that Tenant is not required to publicly file such financial statements pursuant to the Exchange Act or any successor statute, it shall
promptly furnish to Landlord, from time to time, upon Landlord’s written request, the most recent audited year-end financial statements reflecting Tenant’s current financial condition. Tenant represents and warrants that all financial
statements, records and information furnished by Tenant to Landlord in connection with this Lease are true, correct and complete in all respects. 
  
 26.27 Interpretation. This Lease has been negotiated at arm’s length and between persons sophisticated and knowledgeable in
the matters dealt with in this Lease. In addition, each party has been represented by experienced and knowledgeable legal counsel. Accordingly, any rule of law (including California Civil Code § 1654) or legal decision that would require
interpretation of any ambiguities in this Lease against the party that has drafted it is not applicable and is waived. The provisions of this Lease shall be interpreted in a reasonable manner to effect the purpose and intent of the parties to this
Lease. 
  
 26.28 Waiver of Jury Trial and
Counterclaims. THE PARTIES HERETO SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND OR ANY CLAIM OF INJURY OR DAMAGE. 
  
 27. END OF TERM. 
  
 27.1 Surrender of Premises. 
  
 27.1.1 Upon the expiration of the Lease Term or earlier termination hereof through the exercise of any option to terminate this Lease
granted herein (collectively referred to as the “Surrender Date”), title to the Building and the Premises shall be vested in Landlord. Thereupon, Tenant shall peaceably and quietly vacate the entire Premises, including the Building
(a) in good order, condition and repair, except for normal wear and tear and damage from casualty or condemnation; and (b) free and clear of all lettings, occupancies, agreements, easements, encumbrances or other liens other than those to which this
Lease was subject on the Lease Commencement Date and those caused, created by or consented to in writing by Landlord or otherwise permitted by the terms hereof. 
  

 47 

 27.1.2 Notwithstanding the exercise by either party of any option contained herein to
terminate this Lease, any unsatisfied obligations of Tenant accruing on or prior to the Surrender Date and the indemnification provisions of Tenant contained in Paragraphs 15.1 and 20.5 shall survive the Surrender Date unless excused as of the
Surrender Date by the provisions elsewhere contained in this Lease. 
  
 27.2 Re-Entry by Landlord. Upon the Surrender Date, Landlord, without further notice, may enter upon, re-enter, possess and repossess itself of the Premises, by summary proceedings, ejectment or otherwise, may
dispossess and remove Tenant and all other persons and property from the Premises, and may have, hold and enjoy the Premises and the right to receive all Rent and other income of and from the same. As used in this Lease, the words “enter”
and “re-enter” are not restricted to their technical legal meanings. 
  
 27.3 Tenant’s Equipment. Except as otherwise provided for in Paragraphs 9.1.8 and 13, any of Tenant’s Equipment (as
defined in Paragraph 13.2 above) or other personal property which shall remain on the Premises after the Surrender Date and the removal of Tenant from the Premises, at the option of Landlord, may be deemed to have been abandoned by Tenant or any
Subtenant and either may be retained by Landlord as its property or be disposed of, without accountability, in such manner as Landlord may see fit. However, except as otherwise provided for in Paragraphs 9.1.8 and 13, Landlord also shall have the
right to require Tenant to remove any such equipment or other personal property at any time after the Surrender Date and the removal of Tenant from the Premises at Tenant’s own cost and expense and to repair any damage to the Premises resulting
from such removal. From and after the Surrender Date, Landlord shall not be responsible for any loss or damage occurring to any property owned by Tenant or any Subtenant. 
  
 27.4 Survival. The provisions of this Paragraph 27 shall survive the Surrender Date. 
  
 28. Modifications Required by Landlord’s Lender. If, in
connection with Landlord obtaining construction, interim or permanent financing, the lending party shall request reasonable modifications that do not affect the material terms to this Lease as a condition to such financing, Tenant shall execute such
modifications hereto within ten (10) business days following written request therefor. 
  
 29. Expansion Option. 
  
 29.1 Option to Expand. Subject to the conditions set forth in this Paragraph 29, Tenant shall have the right, but not the obligation, to expand the Premises (the “Expansion Option”) to
include approximately [10,000] rentable square feet of contiguous premises as more particularly shown on the floor plan attached hereto as Exhibit G (the “Expansion Space”). 
  
 29.2 Procedure for Expansion. Tenant may exercise the
Expansion Option by providing Landlord, no later than the one year anniversary of the Rent Commencement Date, with written notice that Tenant exercises the Expansion Option. Within ten (10) days after the proper exercise of the Expansion Option,
Tenant and Landlord shall enter into a written amendment to the Lease (the “Amendment”) which shall provide, unless otherwise agreed in 

  

 48 

 
writing, (a) that the Expansion Space will be delivered ready for construction of tenant improvements no later than thirty (30) days after the proper
exercise of the Expansion Option; (b) that the rent commencement date of the Expansion Space shall be no later than one hundred eighty (180) days after the proper exercise of the Expansion Option; (c) that the Premises under the Lease shall be
increased to include the rentable square footage of the Expansion Space; (d) the new Annual Rent, with the Expansion Space increasing the Annual Rent at the square foot rental rate then applicable under the Lease; (e) Tenant’s new Pro Rata
Share of Operating Expenses based upon the addition of the Expansion Space to the Premises (provided that Tenant shall have no obligation to pay for any utilities or Operating Expenses with respect to the Expansion Space prior to the rent
commencement date of the Expansion Space); (f) the proportionate increase to the Security Deposit (which shall be payable upon execution of the Amendment or provided by letter of credit as described in Paragraph 5.8 above); and (g) Landlord shall
provide a tenant improvement allowance not to exceed One Hundred Forty Dollars ($140.00) per rentable square foot of Expansion Space (pro rated based on the remaining Lease Term (excluding any renewal options), and less the amount of Landlord
improvements to the Expansion Space), which shall expire as to that portion not expended within twelve (12) months of the commencement date of the Expansion Space. In all other respects, the Lease shall remain in full force and effect, and shall
apply to the Expansion Space. 
  
 29.3
Limitation on Expansion. Notwithstanding the above, the Expansion Option shall not be exercised by Tenant during such period of time that Tenant is in Default under any provision of the Lease beyond any applicable grace or cure period. Any
attempted exercise of an Expansion Option during a period of time in which Tenant is in Default shall be void. Tenant shall also not be entitled to exercise the Expansion Option if Landlord has given Tenant three (3) or more notices of default under
the Lease, whether or not the defaults are cured, during the five (5) month period prior to the date on which Tenant seeks to exercise any Option. 
  
 30. Right of First Refusal. In addition to Tenant’s rights under Paragraph 29, for a period commencing on the Lease Commencement Date and
ending on the second (2nd) anniversary of the Rent Commencement Date (the “ROFR Period”), Tenant
shall have a right of first refusal (the “ROFR Option”) to lease any future vacant space in the Building that may become available from time to time (any such space, “New Space”). During the ROFR Period, Landlord
shall provide notice (the “ROFR Notice”) to Tenant of the material terms of any letter of intent from any third party proposing to lease New Space. Tenant may exercise the ROFR Option by providing Landlord, no later than ten (10)
days after receipt of the ROFR Notice, with written notice that Tenant exercises the ROFR Option. Within thirty (30) days after the proper exercise of the ROFR Option, Tenant and Landlord shall enter into a written amendment to the Lease setting
forth the terms and conditions for the lease of the New Space described in the applicable ROFR Notice, which terms and conditions shall be no less favorable to Landlord than those set forth in the ROFR Notice. 
  
 31. Right of First Offer. For a period commencing on the second
(2nd) anniversary of the Rent Commencement Date and ending upon the expiration of the Lease Term, including any
renewal terms, prior to offering any New Space to a new tenant, Landlord shall provide notice to Tenant of the availability of such space. The terms and conditions of any lease of such space 

  

 49 

 
shall be negotiated within ten (10) business days after Tenant receives notice from Landlord. Landlord shall be under no obligation to lease such space to
Tenant if Tenant and Landlord are not able to reach an agreement of the material terms and conditions with respect to such New Space within such ten (10) business day period, then thereafter, Landlord may publicly market such space and may negotiate
with other prospective tenants for the lease of such space. 
  
 WHEREFORE, the parties hereto have executed this Lease effective on the Effective Date first set forth above. 
  

									
	TENANT:	 	 	 	LANDLORD:
			
	 NUVELO, INC.,
 a Delaware corporation
	 	 	 	 BMR-201 INDUSTRIAL ROAD LLC,
 a Delaware limited liability company

					
	 By:
	 	 

	 	 	 	 By:
	 	 

	 Name:
	 	 Lee Bendekgey
	 	 	 	 Name:
	 	 Gary A. Kreitzer

	 Title:
	 	 CFO
	 	 	 	 Title:
	 	 Executive Vice President

  

 50 

 EXHIBIT A 
  

Legal Description 
  

 EXHIBIT B 
  

Site Plan 
  

 EXHIBIT C 
  

Acknowledgement of Rent Commencement Date 
  

 EXHIBIT D 
  

Work Letter 
  

 Work Letter 
  
 THIS WORK LETTER (this “Work Letter”) is made and entered into as of January 11, 2005 by and between
BMR-201 INDUSTRIAL ROAD LLC, a Delaware limited liability company (“Landlord”), and NUVELO, INC., a Delaware corporation (“Tenant”), and is attached to and made a part of that certain Lease, dated as of January 11,
2005 (the “Lease”), by and between Landlord and Tenant, for the premises located at 201 Industrial Road, San Carlos, California. All capitalized terms used but not otherwise defined herein shall have the meanings given them in the
Lease. 
  
 1. General Requirements. 
  
 1.1 Tenant’s Authorized Representative. Tenant designates Rob
Middleton, Brian McPherson, Ron Malouf and Bryce Mason (each, a “Tenant’s Authorized Representative”), or any one of them, as the person or persons authorized to approve and initial all plans, drawings, change orders and
approvals on Tenant’s behalf pursuant to this Work Letter. Tenant may change Tenant’s Authorized Representative at any time upon not less than five (5) business days advance written notice to Landlord. Landlord shall not be obligated to
respond to or act upon any such item until such item has been initialed or approved in writing by one of Tenant’s Authorized Representatives. The contact information for the Tenant’s Authorized Representatives are as follows: 

 
 Bryce Mason 
 1770 Pacific Avenue, #103 
 San Francisco, CA
94109 
 Phone: (415) 317-2100 
 Fax:     (415) 276-3065 
 Email: bryce@kbmpartners.com 
  
 Ron Malouf 
 675 Almanor 
 Sunnyvale, CA 
 Phone: (408) 215-4322 
 Email: 
rmalouf@nuvelo.com 
  
 Rob Middleton 
 153 Kearny Street, #409 
 San Francisco, CA
94108 
 Phone: (415) 393-8062 
 Fax:     (415) 393-8008 
 Email: rob@colepm.com 
  
 Brian McPherson 
 153 Kearny Street, #409 
 San Francisco, CA 94108 
  

			
	Phone:	 	(415)393-8062
	Fax:	 	(415)393-8008
	Email:	 	brianm@colepm.com

  
 1.2 Development
Schedule. The schedule for design and development of Tenant’s Work (as hereinafter defined), including without limitation the time periods for preparation and review of construction documents, approvals and performance, whether by Landlord
or by Tenant, shall be in accordance with that certain Time and Responsibility Schedule prepared by Landlord and Tenant, and attached as Schedule D-1 to this Work Letter, subject to adjustment as mutually agreed to in writing by the parties
or as provided in this Work Letter (the “Development Schedule”). 
  
 1.3 Architects and Consultants. The architect, engineering consultants, design team, general contractor and all subcontractors responsible for the construction of Tenant’s Work shall be selected by Tenant
and approved by Landlord. Landlord’s approval of the same shall not be unreasonably withheld, conditioned or delayed. Landlord hereby approves Dowler-Gruman Architects as Tenant’s architect. 
  

	2.	Landlord’s Work. 

  
 2.1 Landlord shall provide to Tenant on or before Rent Commencement Date the following items in a finished condition (collectively,
“Landlord’s Work”): 
  
 (a)
Base Building HVAC to support the fourth (4th) floor Common Areas. 
  
 (b) Building fire exit stairways. Stair wells are considered
Common Areas of the Building. Tenant shall have the right to secure access to any of Tenant’s space from the common areas. 
  
 (c) Fire alarm systems for the Building Common Areas in compliance with applicable codes and regulations. 
  
 (d) Demise the fourth (4th) floor into a multi-tenant floor, which shall include corridors. 
  
 (e) Utility and electrical installation for 4,000 amps in the Building and to the Premises, including
PG&E submeters for the Premises. 
  
 (f)
Elevator service operational, with all inspections and maintenance completed. 
  
 (g) Concrete slab with a floor load capacity that is comparable to other life science laboratories in the San Francisco mid-peninsula area. 
  
 (h) Exterior ramp and exterior alterations to the Building or Common Areas to accommodate a shipping and
receiving area for Tenant’s use. For the avoidance of doubt, any alterations to the interior of the Building or Common Areas related to such shipping and receiving area shall be included in Tenant’s Work (defined below), and 
  

 Landlord’s obligation to construct improvements under this Section 2.1(h) shall be subject to
Approved Tenant Plans related to the interior portion of such shipping and receiving area. 
  
 2.2 Landlord’s Work shall be substantially completed by September 1, 2005. Landlord shall perform Landlord’s Work without any material interference to Tenant’s construction of Tenant’s Work, and
shall have the right to perform Landlord’s Work after tendering possession to Tenant. 
  
 2.3 To the extent Landlord’s Work is not completed substantially by September 1, 2005 (“Delay in Landlord’s Work”), then the Rent Commencement Date shall be extended one day for each day of Delay
in Landlord’s Work. 
  
 3. Tenant’s Work. 
  
 3.1 Work Plans. All work to be performed by Tenant
(“Tenant’s Work”) shall be performed by Tenant at Tenant’s sole cost and expense and without cost to Landlord (except for the Tenant Improvement Allowance and, at Tenant’s option, the Additional Allowance) and in
accordance with the Approved Tenant Plans (as defined below). The quality of Tenant’s Work shall be of a nature and character not less than the quality of other Class A life science tenants in the San Francisco mid-peninsula area
(“Standard Improvements”). The design drawings, plans and specifications contained on Schedule D-2 to this Work Letter (the “Work Plans”) are the initial list of plans which Tenant shall develop and submit to
Landlord for approval. Tenant shall prepare and submit to Landlord for approval schematics covering Tenant’s Work prepared in conformity with the applicable provisions of this Work Letter (the “Draft Plans”). The Draft Plans
shall contain sufficient information to convey Tenant’s proposed design to Landlord and such other information as Landlord may reasonably request. Tenant shall be solely responsible for ensuring that the Work Plans and the Draft Plans reflect
Tenant’s requirements for Tenant’s Work. 
  
 3.2
Landlord Approval of Plans. Landlord shall notify Tenant, within five (5) business days after receipt of the Draft Plans whether Landlord approves or objects to the Draft Plans and of the manner, if any, in which the Draft Plans are
unacceptable. Landlord shall not object to any Draft Plans that set forth Standard Improvements. If Landlord makes objections to the Draft Plans, and provided such objections are reasonable, Tenant shall revise the Draft Plans and cause such
objections to be remedied in the revised Draft Plans. Tenant shall then resubmit the revised Draft Plans to Landlord for approval. Within two (2) business days after Landlord receives the revised Draft Plans, Landlord shall approve or reasonably
disapprove such Draft Plans. If Landlord does not respond within said two (2) business day period, Landlord shall be deemed to have approved of the Draft Plans. This procedure shall be repeated until the Draft Plans are finally approved by Landlord
and written approval has been delivered to and received by Tenant. Landlord’s approval or reasonable objection to the revised Draft Plans and Tenant’s correction of the same shall be in accordance with this Section 3.2. The iteration of
the Draft Plans which are finally approved by Landlord without objection are referred to as the “Approved Tenant Plans.” For the avoidance of doubt, Landlord acknowledges that Tenant will provide Draft Plans for the
following, which following Landlord’s approval in accordance with this Section 3.2 shall be included as part of the Approved Tenant Plans: (a) a designated area for 

  

 
Tenant’s storage purposes to be located adjacent to the new non-exclusive shipping and receiving area in the parking garage, subject to City of San
Carlos’ (“City”) minimum parking requirements; (b) a designated area for Tenant’s Hazardous Materials storage area, which area may be located in the parking garage or outside on the parking lot, all subject to City’s
approval and parking requirements; (c) a reasonable location for an outside generator pad; and (d) reasonable structural improvements to the Premises to increase the Building load for Tenant’s additional storage purposes. 
  
 3.3 Completion of Tenant’s Work. Tenant will perform and cause to
be completed Tenant’s Work (a) in a good and workmanlike manner; (b) in compliance with the Lease and this Work Letter in strict conformance with the Approved Tenant Plans; (c) otherwise in compliance with the Lease and this Work Letter; and
(d) in accordance with all Applicable Laws, Landlord’s and Tenant’s insurance carriers and the board of fire underwriters having jurisdiction. Completion of all Tenant’s Work shall be subject to Landlord’s reasonable approval.

  
 3.4 Conditions to Performance of Tenant’s Work.
Prior to the commencement of Tenant’s Work, Tenant shall submit to Landlord, for Landlord’s approval (which approval shall not be unreasonably withheld, conditioned or delayed), a list (the “Contractor List”) of project
managers and licensed contractors and/or subcontractors who will perform Tenant’s Work. Landlord shall give Tenant notice of its approval or disapproval of the Contractor List within five (5) business days after Landlord’s receipt of the
Contractor List. If Landlord does not respond within said five (5) business day period, Landlord shall be deemed to have approved of the Contractor List. If Landlord reasonably disapproves one or more parties on the Contractor List, Landlord shall
state the reason for its disapproval and Tenant shall revise the Contractor List and resubmit the same to Landlord for Landlord’s approval in accordance with the preceding two sentences. Notwithstanding the foregoing, Landlord hereby approves
BCCI Construction as Tenant’s general contractor; provided that Landlord shall receive a credit of $25,000 against the Tenant Improvement Allowance to cover the fees of Landlord’s construction manager. 
  
 3.5 Requests for Consent. Landlord shall respond to all requests for
consents, approvals, directions or the like made by Tenant pursuant to this Work Letter within five (5) business days following Landlord’s receipt of such request. Requests need be sent only to Landlord’s General Counsel at Landlord’s
San Diego office, either by fax (858-485-9843) or email (gkreitzer@biomedrealty.com). Landlord’s failure to respond within such five (5) business day period shall be deemed approval by Landlord. 
  
 4. Tenant’s Construction Obligations Do Not Delay Rent Commencement Date.
Notwithstanding any Tenant Work to be performed by Tenant, the commencement of the Lease Term and Tenant’s obligation to pay Rent shall not, under any circumstances, be extended or delayed beyond September 1, 2005, unless Landlord does not
cause temporary power to be provided to the Building with an electricity load equal to approximately 50 amps on or prior to February 1, 2005 (in which case the Rent Commencement Date shall be extended by a day for each day that Landlord fails to
complete such Landlord’s work after February 1, 2005); provided that the Premises are delivered to Tenant on or before February 1, 2005 and there are no delays by Landlord in performing Landlord’s Work pursuant to this Work Letter
or the Lease. Tenant shall perform promptly such of its obligations contained in this Work Letter as are to be performed by it. Tenant shall also observe and perform all of its obligations under the Lease 

  

 
from the Lease Commencement Date, while performing Tenant’s Work, other than the payment of Rent. 
  
 5. Completion of Tenant’s Construction Obligations. Tenant, at Tenant’s sole
cost and expense and without cost to Landlord (except for the Tenant Improvement Allowance and, at Tenant’s option, the Additional Allowance), shall complete Tenant’s Work described in this Work Letter in all respects in accordance with
the provisions of the Lease, and not later than December 31, 2005, except for extensions due to Landlord delays or force majeure, after which date Landlord’s obligation to fund the Tenant Improvement Allowance and the Additional Allowance shall
expire. Tenant’s Work shall be completed at such time as Tenant shall (1) furnish evidence reasonably satisfactory to Landlord that (i) all of Tenant’s Work has been completed (which may be evidenced by the architect’s certificate of
completion and the general contractor’s and subcontractor’s final waivers and releases of liens), (ii) such work has been accepted by Landlord, which acceptance shall not be unreasonably withheld, (iii) any and all liens therefor that have
been or might be filed have been discharged of record (by payment, bond, order of a court of competent jurisdiction or otherwise) or waived, and (iv) no security interests relating thereto are outstanding; (2) furnish to Landlord all certifications
and approvals with respect to Tenant’s Work that may be required from any governmental authority and any board of fire underwriters or similar body for the use and occupancy of the Premises; (3) furnish to Landlord the insurance required by the
Lease; and (4) furnish an affidavit from Tenant’s architect certifying that all of Tenant’s Work performed in the Premises is in substantial accordance with the Approved Plans. 
  
 6. Insurance. Tenant shall provide, or shall cause Tenant’s contractors and subcontractors to provide, in addition to the
insurance required of Tenant pursuant to the Lease, the following types of insurance: 
  
 6.1 Builders Risk Insurance. At all times during the period between the commencement of construction of Tenant’s Work and completion of Tenant’s Work, Tenant shall maintain, or cause to be maintained,
casualty insurance in Builder’s Risk Form, covering Landlord, Landlord’s agents, Tenant and Tenant’s contractors, as their interests may appear, against loss or damage by fire, vandalism, and malicious mischief and other such risks as
are customarily covered by the so-called “broad form extended coverage endorsement” upon all Tenant’s Work and builder’s machinery, tools and equipment, all while forming a part of, or contained in, such improvements or temporary
structures while on the Premises, or when adjacent thereto, all on a completed value basis for the full insurable value at all times. Said Builder’s Risk Insurance shall contain an express waiver of any right of subrogation by the insurer
against Landlord, its agents and employees. 
  
 6.2
Workers’ Compensation. At all times during the period of construction of Tenant’s Work, Tenant will itself, if necessary, and will require contractors and subcontractors to maintain statutory Workers’ Compensation insurance.

  
 7. Liability. 
  
 7.1 Tenant’s Liability. Tenant assumes the responsibility and
liability for any and all injuries or death of any persons, including Tenant’s contractors and subcontractors, and their 

  

 
respective employees and for any and all damages to property caused by, or resulting from or arising out of any act or omission on the part of Tenant,
Tenant’s contractors or subcontractors or their respective employees, in the prosecution of Tenant’s Work and with respect to such work. Tenant agrees to indemnify, defend, protect and save free and harmless Landlord, from and against all
losses and/or expenses, including reasonable legal fees and expenses, which Landlord may suffer or pay as the result of claims or lawsuits due to, because of, or arising out of any and all such injuries or death and/or damage, whether real or
alleged and Tenant and Tenant’s contractors and/or subcontractors or their respective insurance companies shall assume and defend at their own expense all such claims or lawsuits; provided, however, that nothing contained in this
Work Letter shall be deemed to indemnify or otherwise hold Landlord harmless from or against the negligent or wrongful acts or omissions of Landlord, its agents, employees and contractors nor to affect or modify the terms of the Lease. Any approval
or consent by Landlord shall in no way obligate Landlord in any manner whatsoever in respect of the finished product designed and/or constructed by Tenant or its contractors. Any deficiency in design or construction, although the same has prior
approval of Landlord, shall be solely the responsibility of Tenant. All construction materials and equipment furnished by Tenant as Tenant Work, except for personal property, furniture and trade equipment, shall be new or “like-new” and
all work shall be performed in a first-class workmanlike manner. 
  
 7.2 Landlord’s Liability. Landlord assumes the responsibility and liability for any and all injuries or death of any persons, including Landlord’s contractors and subcontractors, and their respective employees and for any
and all damages to property caused by, or resulting from or arising out of any act or omission on the part of Landlord, Landlord’s contractors or subcontractors or their respective employees, in the prosecution of Landlord’s Work and with
respect to such work. Landlord agrees to indemnify, defend, protect and save free and harmless Tenant, from and against all losses and/or expenses, including reasonable legal fees and expenses, which Tenant may suffer or pay as the result of claims
or lawsuits due to, because of, or arising out of any and all such injuries or death and/or damage, whether real or alleged and Landlord and Landlord’s contractors and/or subcontractors or their respective insurance companies shall assume and
defend at their own expense all such claims or lawsuits; provided, however, that nothing contained in this Work Letter shall be deemed to indemnify or otherwise hold Tenant harmless from or against the negligent or wrongful acts or
omissions of Tenant, its agents, employees and contractors nor to affect or modify the terms of the Lease. 
  
 8. Tenant Improvement Allowance. 
  
 8.1 Application of Tenant Improvement Allowance. Landlord shall contribute first the Tenant Improvement Allowance and second, at Tenant’s option, the Additional Allowance toward the costs and expenses incurred in connection with
the performance of Tenant’s Work. If the entire Tenant Improvement Allowance is not applied toward or reserved for the costs of Tenant’s Work, any unused portion of the Tenant Improvement Allowance shall be credited against Monthly Rent
payments as such Monthly Rent payments become due. 
  
 8.2
Approval of Budget for Tenant’s Work. Notwithstanding anything to the contrary set forth elsewhere in this Work Letter, Landlord shall not have any obligation to advance to Tenant any portion of the Tenant Improvement Allowance or
Additional Allowance until Landlord shall have reasonably approved, in writing, the project budget for the Tenant’s Work 

  

 
(an “Approved Budget”). Landlord shall respond to the proposed budget within five (5) business days of submittal by Tenant, and if Landlord
does not respond within said five (5) business day period, such proposed budget shall be deemed approved. Landlord’s consent to the proposed budget shall not be unreasonably withheld. If the Approved Budget exceeds the Tenant Improvement
Allowance, then within five (5) business days of the day Landlord approves such budget, Tenant may request in writing that Landlord fund the Additional Allowance in accordance with Paragraph 4.5 of the Lease. In the event Tenant makes such election
with respect to the Additional Allowance, the Combined Allowance shall be used to fund the Approved Budget; provided, however, that in the event Tenant does not request the Additional Allowance, or the Combined Allowance is still not
sufficient to cover the Approved Budget (including any approved Tenant Changes), then Tenant shall deliver to Landlord within five (5) business days a letter of credit in favor of Landlord in an amount sufficient to cover such excess costs
(“Tenant’s Costs”). Once all funds in the Tenant Improvement Allowance and the Additional Allowance, if applicable, have been paid by Landlord, Tenant shall pay for the Tenant’s Costs directly to the contractors, subcontractors
or vendors, and in the event Tenant does not directly pay such Tenant’s Costs within a reasonable period of time, Landlord shall be entitled to draw from the letter of credit described above. In the event Tenant pays for the Tenant’s Costs
directly to Tenant’s contractors, subcontractors or vendors, Landlord shall return said letter of credit to Tenant upon Tenant’s completion of Tenant’s Work in accordance with Section 5 hereof. 
  
 8.3 Advance Requests. Upon submission by Tenant to Landlord of a
statement (an “Advance Request”) from Tenant’s contractor, subcontractor or vendor setting forth the total amount requested therefrom and a reasonably detailed summary of the work performed (which shall be satisfied by a copy of an
AIA standard form Application for Payment (G702) executed by the general contractor and by the architect) accompanied by unconditional partial lien releases from the general contractor and the relevant subcontractors in respect of the prior advance
and conditional lien releases from the general contractor and the relevant subcontractors in respect of the current Advance Request, Landlord, within seven (7) business days following receipt by Landlord of an Advance Request and the accompanying
materials, shall make such payment directly to Tenant’s contractor, subcontractor or vendor, as applicable; provided, however, that Landlord shall not be responsible for payments for Tenant’s Work once all funds in the Tenant Improvement
Allowance and the Additional Allowance, if applicable, have been used. 
  
 8.4 Use of the Tenant Improvement Allowance. The Tenant Improvement Allowance may be used for the payment of Tenant’s furniture, personal property, equipment (including non-building system equipment), and trade fixtures in
accordance with Paragraph 4.5 of the Lease, including without limitation, data cabling, telephone and data equipment, security, audio/visual equipment, white noise and furniture systems (“FF&E”). As provided in Paragraph 4.5 of the
Lease, in no event shall more than fifteen percent (15%) of the Tenant Improvement Allowance be used to purchase FF&E. The FF&E shall be part of the Approved Budget. 
  
 9. Existing Building Materials; Removal of Tenant’s Property. Any existing building materials within the Premises that Tenant
reuses (e.g., lights, doors, frames, hardware, etc.) shall be at no cost to Tenant and shall not be deducted from the Tenant Improvement Allowance or Additional Allowance. 
  

 10. Changes. Any major changes requested by Landlord or Tenant to Tenant’s Work after Landlord signs the
Approved Plans shall be requested and instituted in accordance with the provisions of this Section 10 and shall be subject to the reasonable written approval of the party not requesting the change. 
  
 10.1 Tenant Change Requests. 
  
 10.1.1 If, after Landlord signs the Approved Plans, Tenant
shall request changes to Tenant’s Work or request major changes to the Tenant’s Work already installed (“Tenant Changes”), Tenant shall request such Tenant Changes by notifying Landlord in writing in substantially
the same form as the AIA standard change order form (a “Tenant Change Request”), which Tenant Change Request shall detail (i) the nature and extent of any such Tenant Change and (ii) an estimate of the additional cost or
savings and the time savings or delay involved with respect to such Tenant Change. If the nature of such Tenant Change requires revisions to the Approved Plans in order to comply with Applicable Laws, then Tenant shall be solely responsible for the
cost of such revisions. Such Tenant Change Request must be signed by one of Tenant’s Authorized Representatives or Landlord shall not be required to process such Tenant Change Request. Landlord, before approving a Tenant Change to Tenant’s
Work, shall use its best efforts to respond to Tenant as soon as is reasonably possible with an estimate of the time it will take Landlord to analyze the Tenant Change Request. Landlord shall thereafter submit to Tenant in writing, within five (5)
business days receipt of the Tenant Change Request (or such longer period of time as is reasonably required depending on the extent of the Tenant Change Request), Landlord’s approval or disapproval of the Tenant Change Request. If Landlord
fails to respond to the Tenant Change Request, then the Tenant Change Request shall be deemed accepted and Tenant shall be permitted to proceed with the Tenant’s Work in accordance with the Tenant Change Request. 
  
 10.1.2 Landlord shall approve or reject the Tenant Change
Request according to the guidelines established pursuant to Section 3 hereof. If Landlord does not approve in writing the Tenant Change Request, the Tenant Change Request shall be deemed rejected and Tenant shall not be permitted to construct
Tenant’s Work in accordance with the Tenant Change Request. 
  
 10.2 Landlord Change Requests. 
  
 10.2.1 If, after Landlord signs the Approved Plans, Landlord shall request reasonable changes to Tenant’s Work or request reasonable changes to the Tenant’s Work already installed (“Landlord Changes”), Landlord
shall request such Landlord Changes by notifying Tenant in writing in substantially the same form as the AIA standard change order form (a “Landlord Change Request”), which Landlord Change Request shall detail the nature and extent
of any such Landlord Change. If the nature of such Landlord Change requires revisions to the Approved Plans, then Landlord shall be solely responsible for the cost of such revisions. Tenant shall, before proceeding with any Landlord Change to
Tenant’s Work, use its best efforts to respond to Landlord as soon as is reasonably possible within estimate of (i) the time it will take Tenant to analyze the Landlord Change Request, and (ii) the architectural and engineering fees and costs
which will be incurred in order to analyze such Landlord Change Request and Tenant shall thereafter submit to Landlord in writing, within five (5) days receipt of 

  

 
the Landlord Change Request (or such longer period of time as is reasonably required depending on the extent of the Landlord Change Request), an estimate of
the additional cost or savings involved with respect to Tenant’s Work. 
  
 10.2.2 If the Landlord Change impacts on Tenant’s Work, then if Landlord approves in writing the cost or savings, Tenant shall cause the approved Landlord Change to be instituted. If Tenant does not approve in
writing the cost or savings and the extension in the time for completion of Tenant’s Work, then the Landlord Change Request shall be deemed rejected and Tenant shall not be required to construct Tenant’s Work in accordance with the
Landlord Change Request. All additional costs and expenses payable by Tenant to complete Tenant’s Work due to the Landlord Change Request shall be reimbursed by Landlord, but shall not result in any reduction in the Tenant Improvement Allowance
or Additional Allowance. If as a result of the Landlord Change, Tenant’s Work is not completed by September 1, 2005, the Rent Commencement Date shall be extended a day for each day that such Landlord Change delays completion of Tenant’s
Work. 
  
 11. Costs. Except as provided in Section 10.2, Landlord is under
no obligation to bear any portion of the cost of any of Tenant’s Work except to the extent of the Tenant Improvement Allowance, Landlord’s contribution to a preliminary space planning “test-fit” as provided in Section 4.5 of the
Lease, and, at Tenant’s option, the Additional Allowance. 
  
 12.
Miscellaneous. 
  
 12.1 Consents. Whenever consent
or approval of either party is required under this Work Letter, that party shall not unreasonably withhold, condition or delay such consent or approval, except as may be expressly set forth herein to the contrary. 
  
 12.2 Modification. No modification, waiver or amendment of this Work
Letter or of any of its conditions or provisions shall be binding upon Landlord or Tenant unless the same is in writing, signed by Landlord and Tenant. 
  
 12.3 Counterparts. This Work Letter may be executed in any number of counterparts, but all counterparts taken together shall constitute a single
document. 
  
 12.4 Governing Law. This Work Letter shall be
governed by, construed and enforced in accordance with the laws of the State of California. 
  
 12.5 Time of the Essence. Time is of the essence of this Work Letter and of each and all provisions thereof. 
  
 12.6 Delay. Tenant shall be excused for any delay in completion of any portion of Tenant’s Work caused by acts of God, acts of Landlord,
inclement weather, labor trouble, acts of public utilities, or changes requested by Landlord which are, in each case, beyond the reasonable control of Tenant. 
  

12.7 Severability. If any term or provision of this Work Letter is declared invalid or unenforceable, the remainder of this Work Letter shall
not be affected by such determination and shall continue to be valid and enforceable. 
  

 12.8 Merger. All understandings and agreements, oral or written, heretofore made between the
parties hereto and relating to Tenant’s Work are merged in this Work Letter, which alone (but inclusive of provisions of the Lease incorporated herein and the final Approved Plans prepared pursuant hereto) fully and completely expresses the
agreement between Landlord and Tenant with regard to the matters set forth in this Work Letter. 
  
 IN WITNESS WHEREOF, Landlord and Tenant have executed this Work Letter to be effective on the date first above written. 
  

									
	 TENANT:
	 	 	 	 LANDLORD:

			
	 NUVELO, INC.,
	 	 	 	 BMR-201 INDUSTRIAL ROAD LLC,

	 a Delaware corporation
	 	 	 	 a Delaware limited liability company

					
	By:	 	 

	 	 	 	By:	 	 

	 Name:
	 	 Lee Bendekgey
	 	 	 	 Name:
	 	 Gary A. Kreitzer

	 Title:
	 	 CFO
	 	 	 	 Title:
	 	 Executive Vice President

  

 EXHIBIT E 
  

Rules and Regulations 
  

 EXHIBIT F 
  

Estoppel Certificate

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