Document:

Exhibit
10.2

 

EXECUTION
COPY

 

 

AMENDED AND RESTATED WORLDWIDE AGREEMENT

 

 

This Amended and Restated Worldwide Agreement is
entered into as of October 1, 2003 (the “Effective
Date”), by and among, on the one hand, HOFFMANN-LA ROCHE INC., a New
Jersey corporation having offices at 340 Kingsland Street, Nutley, New Jersey
07110 (“Roche-Nutley”) and F.
HOFFMANN-LA ROCHE LTD of Basel, Switzerland (“F.
Roche”) (Roche-Nutley and F. Roche are hereinafter individually
and collectively referred to as “Roche”)
and, on the other hand, PROTEIN DESIGN LABS, INC., a Delaware corporation
having offices at 34801 Campus Drive, Fremont, California  94555 (“PDL”).

 

RECITALS

 

Roche and PDL were originally parties to agreements dated
January 31, 1989, as amended (the “1989
Agreements”) pertaining to humanized and chimeric antibodies against
the interleukin-2 receptor (“IL-2R”).

 

Under the 1989 Agreements, PDL exclusively licensed to Roche rights to
a humanized antibody now known as Daclizumab (as defined below).

 

Roche is currently marketing Daclizumab under the trademark Zenapax®
for the prevention of acute organ rejection in patients receiving kidney
transplants.

 

In 1999, Roche and PDL replaced the 1989 Agreements with two new
agreements (as amended, known separately as the “1999 PDL/Roche Agreement” and the “F. Roche Agreement,” respectively, and collectively as
the “1999 Agreements”) which
provided PDL with rights to develop and, if successful, promote Daclizumab in
autoimmune indications for increased compensation from the 1989 Agreements.

 

Roche and PDL now desire to replace the 1999 Agreements with this
Amended and Restated Worldwide Agreement that (1) reverts to PDL all IL-2R
antibody rights licensed to Roche by PDL under the 1999 Agreements, subject to
Roche’s continuing exclusive license to market and sell Daclizumab for
Transplant Indications in the Roche Territory and develop and commercialize
products based [CONFIDENTIAL TREATMENT REQUESTED] that [CONFIDENTIAL TREATMENT
REQUESTED] to the [CONFIDENTIAL TREATMENT REQUESTED] of [CONFIDENTIAL TREATMENT
REQUESTED]; (2) grants to PDL the sole and exclusive worldwide rights under
Roche’s relevant intellectual property to develop, and, if successful, market
and sell Daclizumab for Autoimmune Indications and Other Indications; and (3)
grants PDL the right to purchase all of Roche’s remaining rights to Daclizumab,
subject to Roche’s right to retain its exclusive license from PDL to develop
and commercialize products based on [CONFIDENTIAL TREATMENT REQUESTED] that
[CONFIDENTIAL TREATMENT REQUESTED] to the [CONFIDENTIAL TREATMENT REQUESTED] of
[CONFIDENTIAL TREATMENT REQUESTED].

 

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NOW, THEREFORE, in consideration of the premises and
the mutual promises and covenants set forth below, PDL and Roche mutually agree
to amend and restate the 1999 Agreements in this single Amended and Restated
Worldwide Agreement as follows:

 

I.  DEFINITIONS

 

For the purposes of this Amended and Restated
Worldwide Agreement, the following terms, when written with an initial capital
letter, shall have the meaning ascribed to them below.  All references to
particular Appendices, Articles and Sections shall mean the Appendices to, and
Articles and Sections of, this Amended and Restated Worldwide Agreement, unless
otherwise specified.

 

1.1                                 “AAGS” shall mean the average annualized
Roche Adjusted Gross Sales of Daclizumab calculated according to the following:

 

[CONFIDENTIAL
TREATMENT REQUESTED]

 

1.2                                 “Acting Party” has the meaning set forth in
Section 12.1(c).

 

1.3                                 “Affiliates” means any corporation or other
business entity controlled by, controlling, or under common control with
another entity, with “control” meaning direct or indirect beneficial ownership
of more than fifty percent (50%) of the voting stock of, or more than a fifty
percent (50%) interest in the income of, such corporation or other business
entity.  Anything to the contrary in this paragraph notwithstanding,
[CONFIDENTIAL TREATMENT REQUESTED].

 

1.4                                 “AI Trademarks” means all trademarks used
in connection with the marketing, promotion, and sale of Daclizumab by PDL or
its sublicensee(s) and all trademark registrations and applications therefor,
and all goodwill associated therewith.

 

1.5                                 “Application” means a new application, or a
supplement or an amendment to an existing application, for marketing approval
for an Autoimmune Indication in the Territory.

 

1.6                                 “Autoimmune Indications” or “AI” means all indications that involve
pathogenic consequences, including tissue injury, produced by autoantibodies or
autoreactive T lymphocytes interacting with self epitopes, i.e.,
autoantigens.  Autoimmune Indications shall include, without limitation,
asthma, psoriasis, rheumatoid arthritis, systemic lupus erythematosus,
scleroderma, juvenile rheumatoid arthritis, polymytosis, Type I diabetes,
sarcoidosis, Sjogrens syndrome, chronic active non-pathogenic hepatitis,
non-infectious uveitis (Behcets), aplastic anemia, regional non-pathogenic
enteritis (including ulcerative colitis, Crohn’s Disease and inflammatory bowel
disease), Kawasaki’s disease, post-infectious encephalitis, multiple sclerosis,
and tropic spastic paraparesis.

 

1.7                                 “Change of Control” means a transaction in
which Roche
either (a) sells, conveys or otherwise disposes of all or substantially all of
its property or business; or (b) either (i) merges or consolidates with any
other entity (other than a wholly-owned subsidiary of Roche); or (ii) effects any other
transaction or series of transactions, in each case of clause (i) or (ii), such

 

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that the voting stockholders of Roche immediately
prior thereto, in the aggregate, no longer own, directly or indirectly,
beneficially or legally, at least fifty percent (50%) of the outstanding voting
securities or capital stock of the surviving entity following the closing of
such merger, consolidation, other transaction or series of transactions.

 

1.8                                 “Combination Product” means any product
containing both an ingredient that causes it to be considered a Licensed
Product and one or more other therapeutically active ingredients.

 

1.9                                 “Commercialization Term” means the period
commencing on the Effective Date and ending on the earliest of (a) the
Reversion Effective Date; (b) the Put Right Effective Date; and (c) if Roche
does not exercise the Roche Put Right and the Exercise Period ends without PDL
exercising the Transplant Reversion, the date Roche ceases to sell Daclizumab
in every country in the Roche Territory, as permitted under this Amended and
Restated Worldwide Agreement.

 

1.10                           “Controlled” means, with respect to any
intellectual property right, that the party has a license to such intellectual
property right and has the ability to grant to the other party a sublicense to
such intellectual property right as provided for herein without violating the
terms of any agreement or other arrangements with any Third Party existing at
the time such party would be first required hereunder to grant the other party
such sublicense.

 

1.11                           “Cost of Goods” means the manufacturing
cost of either (a) unformulated bulk Daclizumab, or (b) finished Daclizumab
product made from unformulated bulk, as the case may be, calculated in
accordance with internal cost accounting methods consistently applied by a
party for its other biologics pharmaceutical products, provided that such
methods comply with  [CONFIDENTIAL TREATMENT
REQUESTED].  Cost of Goods shall include [CONFIDENTIAL TREATMENT
REQUESTED].  As used in this
Amended and Restated Worldwide Agreement, the Cost of Goods shall not exceed
[CONFIDENTIAL TREATMENT REQUESTED].

 

1.12                           “Cover” (including variations thereof such
as “Covering” or “Covered”), means that the manufacture, use, sale, offer for
sale, or importation of a particular product would infringe a Valid Claim of a
patent in the absence of rights under such patent.  The determination of
whether a particular product is Covered by particular Valid Claims shall be
made on a country-by-country basis.

 

1.13                           “Daclizumab” means any product that
contains humanized anti-Tac (as defined under “Field”).

 

1.14                           “Daclizumab Assets” means  all assets owned by Roche or its
Affiliates and relevant solely to the development or commercialization of
Daclizumab, other than the Trademarks and the Roche Owned Patents. 
Daclizumab Assets include, without limitation:

 

(a)                                  domain
names used in connection with the sale or promotion of Daclizumab;

 

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(b)                                 all
then current promotional materials, including brochures, leave-behind
materials, product fact sheets, advertisements in all media;

 

(c)                                  all
then current packaging art copy, and all trade dress rights thereto;

 

(d)                                 rights
to any “look and feel” of any materials referenced in (a) through (c) above and
used in connection with the marketing, sale or promotion of Daclizumab and any
and all copyrights or other intellectual property rights appurtenant thereto;

 

(e)                                  all
then current sales training materials and medical education materials;

 

(f)                                    copies
of market research surveys, analyses, and reports;

 

(g)                                 then
current customer lists, sales records, lists of distributors;

 

(h)                                 regulatory
filings, INDs, agreements related to physician sponsored INDs (to the extent
assignable), CTXs, BLAs, and foreign equivalents of the foregoing, and all
associated communications with regulatory authorities in the Roche Territory
(excluding manufacturing approvals); and

 

(i)                                     then
current contracts with managed care groups, hospitals, transplant centers,
pharmaceutical benefit managers, distributors and other similar Third Parties.

 

1.15                           “Excluded Field” means [CONFIDENTIAL
TREATMENT REQUESTED] that (a) [CONFIDENTIAL TREATMENT REQUESTED] to the
[CONFIDENTIAL TREATMENT REQUESTED] of [CONFIDENTIAL TREATMENT REQUESTED], (b)
[CONFIDENTIAL TREATMENT REQUESTED] the [CONFIDENTIAL TREATMENT REQUESTED] of
[CONFIDENTIAL TREATMENT REQUESTED], and (c) may also [CONFIDENTIAL TREATMENT
REQUESTED].  The Parties agree that
Daclizumab is not in the Excluded Field.

 

1.16                           “Excluded Product” means any product in the
Excluded Field, including any Combination Product, that contains an
[CONFIDENTIAL TREATMENT REQUESTED] that was [CONFIDENTIAL TREATMENT REQUESTED]
by [CONFIDENTIAL TREATMENT REQUESTED] on behalf of [CONFIDENTIAL TREATMENT
REQUESTED] pursuant to the [CONFIDENTIAL TREATMENT REQUESTED].
 [CONFIDENTIAL TREATMENT REQUESTED] shall be deemed to be an Excluded
Product.

 

1.17                           “Exercise Period” has the meaning set forth
in Section 5.2(a).

 

1.18                           “FDA” means the United States Food and Drug
Administration and any successor agency thereto, and/or any equivalent foreign
governmental agency, depending on the context.

 

1.19                           “Field” means any humanized or chimeric
antibody that binds to IL-2R, where “humanized” means a genetically engineered
combination of a substantially human framework region and constant region, and
complementarity determining regions from non-human antibodies, and where
“chimeric” means a genetically engineered combination of human constant region
and non-human variable region.  “Antibodies
in the Field” means humanized and

 

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chimeric antibodies that bind to IL-2R.  It is believed that these
Antibodies in the Field may be useful for therapeutic, diagnostic, imaging and
similar purposes.  It is understood that the Field includes, but is not
limited to, that certain humanized murine monoclonal antibody prepared against
the p55 component of IL-2R (“humanized
anti-Tac”). Furthermore, the Field includes, but is not limited to,
all improvements relating to humanized anti-Tac, including without limitation
modifications in structure introduced by genetic engineering, or by chemical or
enzymatic cleavage.  Also included within the Field shall be alternate
hosts for producing humanized anti-Tac, methods for purification, formulations
incorporating humanized anti-Tac, and uses and methods of use for humanized
anti-Tac in human medicine.

 

1.20                           “Joint Inventions” means any inventions in
the Field, whether patented or not, that are jointly made during the period
beginning on January 31, 1989 and continuing until the end of the
Commercialization Term by at least one (1) PDL employee or person contractually
required to assign or license patent rights covering such inventions to PDL and
at least one (1) Roche-Nutley or F. Roche employee or person contractually
required to assign or license patent rights covering such inventions to
Roche-Nutley or F. Roche.

 

1.21                           “Licensed Product” means any product, other
than an Excluded Product, in the Field, including any Combination Product, the
making, importation, use, offer for sale, or sale of which utilizes Roche
Know-How, Roche Patents, or Joint Inventions or would, in the absence of this
Amended and Restated Worldwide Agreement, infringe a Valid Claim of a Roche
Patent.  Daclizumab shall be deemed to be a Licensed Product.

 

1.22                           “Major Country” means the United States,
United Kingdom, France, Italy and Germany.

 

1.23                           “Other Indications” means all indications
other than Transplant Indications and Autoimmune Indications.

 

1.24                           “Other Licensed Products” means all Licensed
Products other than Daclizumab.

 

1.25                           “PDL Adjusted Gross Sales” means the gross
invoice price of Daclizumab sold or otherwise disposed of for consideration in
the Roche Territory by PDL, its Affiliates or sublicensees (other than Roche
and its Affiliates hereunder) to independent Third Parties not an Affiliate of
the seller, reduced by the following amounts: (a) the amounts actually allowed
as volume or quantity discounts, rebates, price reductions, returns (including
withdrawals and recalls); and (b) sales, excise and turnover taxes imposed
directly on and actually paid by PDL, its Affiliates or sublicensees.

 

When calculating the PDL Adjusted Gross Sales, the
amount of such sales in foreign currencies shall be converted into U.S. dollars
at the average rate of exchange at the time for the applicable calendar quarter
in accordance with PDL’s then-current standard practices.

 

In the case of Combination Products for which
Daclizumab and each of the other therapeutically active ingredients contained
in the Combination Product have established market prices when sold separately,
PDL Adjusted Gross Sales shall be determined by multiplying the

 

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PDL Adjusted Gross Sales for each such Combination Product by a
fraction, the numerator of which shall be the established market price for the
form and formulation of Daclizumab contained in the Combination Product, and
the denominator of which shall be the sum of the established market prices for
such form and formulation of Daclizumab plus the other active ingredients
contained in the Combination Product.  When such separate market prices
are not established, then the parties shall negotiate in good faith to
determine the method of calculating PDL Adjusted Gross Sales for Combination
Products.

 

If PDL or its Affiliates or sublicensees receive
non-cash consideration for Daclizumab sold or otherwise transferred to an
independent Third Party not an Affiliate of the seller or transferor, the fair
market value of such non-cash consideration on the date of the transfer as
known to PDL, or as reasonably estimated by PDL if unknown, shall be deemed the
PDL Adjusted Gross Sales for such Daclizumab sold or otherwise transferred.

 

1.26                           PDL Know-How” means, except as otherwise
set forth in this Section 1.26, all inventions, discoveries, trade
secrets, information, experience, data, formulas, procedures and results in the
Field, and improvements thereon, including any information regarding the
physical, chemical, biological, toxicological, pharmacological, clinical, and
veterinary data, dosage regimens, control assays and specifications of
Daclizumab (collectively, “Know-How in the
Field”), that is owned or Controlled by PDL or its Affiliates as of
the Effective Date or that is developed or Controlled by PDL or its Affiliates
during the term of this Amended and Restated Worldwide Agreement, and which
Know-How in the Field is reasonably required or useful for manufacturing, using
or selling Daclizumab; provided, however, that PDL Know-How excludes any Know-How
in the Field of any kind concerning generic methods of manufacturing,
designing, developing or preparing antibodies including, but not limited to,
methods of humanizing antibodies, methods of reducing the immunogenicity of
antibodies, and methods of increasing the affinity of antibodies.

 

1.27                           “PDL Net Sales” means the amount determined
by deducting [CONFIDENTIAL TREATMENT REQUESTED] from PDL Adjusted Gross Sales
to cover all other expenses or discounts, including but not limited to cash
discounts, custom duties, transportation and insurance charges and other direct
expenses, to the extent not already deducted from the amount invoiced.

 

1.28                           “PDL Patents” means all patent applications
owned or Controlled by PDL alone or with a Third Party (“Sole PDL Patents”) and all patent
applications resulting from Joint Inventions (“Joint
Roche-PDL Patents”) Covering Daclizumab, which are filed prior to or
during the term of the 1989 Agreements, the 1999 Agreements or this Amended and
Restated Worldwide Agreement in the United States or any foreign jurisdiction,
including any addition, continuation, continuation-in-part or division thereof
or any substitute application therefor; any patent issued with respect to such
patent application, any reissue, extension or patent term extension of any such
patent, and any confirmation patent or registration patent or patent of
addition based on any such patent; and any other United States or foreign
patent or inventor’s certificate covering products in the Field.

 

6

 

1.29                           “PDL Sole Territory” means all countries of
the world, as listed in Appendix C (which the parties may agree to update from
time to time), with respect to which Roche has granted an exclusive license to
PDL, in connection with the previous return or reversion of Roche’s rights
under the 1999 Agreements.

 

1.30                           “Product Operating Committee” or “POC” has the meaning set forth in
Section 6.2(a).

 

1.31                           “Put Exercise Fee” has the meaning set
forth in Section 5.3(b).

 

1.32                           “Put Right Effective Date” has the meaning
set forth in Section 5.3(a).

 

1.33                           “Queen et al. Patents” means those Sole PDL
Patents in the Territory claiming priority under 35 USC 120 to U.S. Patent
Application Serial No. 290,975, filed December 28, 1988.

 

1.34                           “Reasonable Diligence” means the same level
of effort used by Roche in developing, registering, marketing and selling its
own protein-based products that must be approved by the FDA before they can be
sold in the Roche Territory.  The parties acknowledge that Roche does not
develop, register, market and sell its own protein-based products in every
country within the Roche Territory, and it is understood that the exercise by
Roche of reasonable diligence shall be determined by judging its efforts in the
Roche Territory taken as a whole.

 

1.35                           “Regulatory Approval” means the granting of
all governmental regulatory approvals required, if any, for the sale of a
Licensed Product in a given country or jurisdiction within the Territory.

 

1.36                           “Reversion Effective Date” has the meaning
set forth in Section 5.2(b).

 

1.37                           “Reversion Exercise Fee” has the meaning
set forth in Section 5.2(c).

 

1.38                           “Roche Adjusted Gross Sales” means the
gross invoice price of Daclizumab sold or otherwise disposed of for
consideration by Roche, its Affiliates or sublicensees (other than PDL and its
Affiliates hereunder) to independent Third Parties not an Affiliate of the
seller, reduced by the following amounts: (a) the amounts actually allowed as
volume or quantity discounts, rebates, price reductions, returns (including
withdrawals and recalls); and (b) sales, excise and turnover taxes imposed
directly on and actually paid by Roche, its Affiliates or sublicensees.

 

When calculating the Roche Adjusted Gross Sales, the
amount of such sales in foreign currencies shall be converted into U.S. dollars
at the average rate of exchange at the time for the applicable calendar quarter
in accordance with Roche’s then-current standard practices.

 

In the case of Combination Products for which Daclizumab
and each of the other therapeutically active ingredients contained in the
Combination Product have established market prices when sold separately, Roche
Adjusted Gross Sales shall be determined by multiplying the Roche Adjusted
Gross Sales for each such Combination Product by a fraction, the numerator of

 

7

 

which shall be the established market price for the form and
formulation of Daclizumab contained in the Combination Product, and the
denominator of which shall be the sum of the established market prices for such
form and formulation of Daclizumab plus the other active ingredients contained
in the Combination Product.  When such separate market prices are not
established, then the parties shall negotiate in good faith to determine the
method of calculating Roche Adjusted Gross Sales for Combination Products.

 

If Roche or
its Affiliates or sublicensees receive non-cash consideration for Daclizumab
sold or otherwise transferred to an independent Third Party not an Affiliate of
the seller or transferor, the fair market value of such non-cash consideration
on the date of the transfer as known to Roche, or as reasonably estimated by
Roche if unknown, shall be deemed the Roche Adjusted Gross Sales for such Daclizumab
sold or otherwise transferred.

 

1.39                           “Roche Commercialization Activities” has
the meaning set forth in Section 4.1(a).

 

1.40                           “Roche Controlled Patents” means all patent
applications Controlled by Roche or its Affiliates and not Controlled by PDL or
its Affiliates Covering inventions in the Field that are filed prior to or
during the term of this Amended and Restated Worldwide Agreement in the United
States or any foreign jurisdiction, including any addition, continuation,
continuation-in-part or division thereof or any substitute application
therefor; any patent issued with respect to such patent application, any
reissue, extension or patent term extension of any such patent, and any
confirmation patent or registration patent or patent of addition based on any
such patent; and any other United States or foreign patent or inventor’s
certificate covering inventions in the Field. 
Roche Controlled Patents are, specifically, those listed on
Schedule 2.8(b).

 

1.41                           “Roche Inventions” means any inventions in
the Field that are made prior to or during the term of this Amended and
Restated Worldwide Agreement by employees of Roche or persons contractually
required to assign or license patent rights covering such inventions to Roche.

 

1.42                           “Roche Know-How” means all Know-How in the
Field that is owned or Controlled by Roche or its Affiliates as of the
Effective Date, or that is developed or Controlled by Roche or its Affiliates
during the Commercialization Term and which Know-How in the Field is reasonably
required or useful for seeking registration of, manufacturing, using or selling
Daclizumab, as the case may be, provided, however, that this portion of Roche
Know-How excludes any Know-How in the Field of any kind concerning generic
methods of manufacturing, designing, developing or preparing antibodies
including, but not limited to, methods of humanizing antibodies, methods of
reducing the immunogenicity of antibodies, and methods of increasing the
affinity of antibodies.  For clarity,
Roche Know-How includes all Know-How in the Field provided to PDL by Roche or
its Affiliates under the 1989 Agreements and 1999 Agreements.

 

1.43                           “Roche Licensed Know-How” means that portion
of Roche Know-How that is reasonably required or useful for seeking
registration of, manufacturing, using or selling

 

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Daclizumab for Autoimmune Indications or any Other Indication, but
shall not include [CONFIDENTIAL TREATMENT REQUESTED].

 

1.44                           “Roche Licensed Patents” means those Roche
Patents that Cover in whole or in part the manufacture, importation, offer for
sale or sale of Daclizumab or any Other Licensed Products, or the use of
Daclizumab or any Other Licensed Products in Autoimmune Indications or Other
Indications.

 

1.45                           “Roche Net Sales” means the amount
determined by deducting [CONFIDENTIAL TREATMENT REQUESTED] from Roche Adjusted
Gross Sales to cover all other expenses or discounts, including but not limited
to cash discounts, custom duties, transportation and insurance charges and other
direct expenses, to the extent not already deducted from the amount
invoiced.  Notwithstanding the foregoing, “Roche Net Sales of Excluded Products” shall be calculated in
the same manner as Roche Net Sales, except that for the purpose of such
calculation, Roche Adjusted Gross Sales shall be based on the gross invoice
price of Excluded Products.

 

1.46                           “Roche Owned Patents” means all patent
applications owned by Roche or its Affiliates (“Sole Roche Patents”) alone or with a Third Party, and all
patent applications resulting from Joint Inventions (“Joint Roche-PDL Patents”) covering inventions in the Field
that are filed prior to or during the term of this Amended and Restated
Worldwide Agreement in the United States or any foreign jurisdiction, including
any addition, continuation, continuation-in-part or division thereof or any
substitute application therefor; any patent issued with respect to such patent
application, any reissue, extension or patent term extension of any such
patent, and any confirmation patent or registration patent or patent of
addition based on any such patent; and any other United States or foreign
patent or inventor’s certificate covering inventions in the Field.  Roche
Owned Patents as of the Effective Date are, specifically, those listed on
Schedule 2.8(a).

 

1.47                           “Roche Patents” means both the Roche Owned
Patents and the Roche Controlled Patents.

 

1.48                           “Roche Products” means Daclizumab and any
Excluded Products.

 

1.49                           “Roche Put Right” has the meaning set forth
in Section 5.3(a).

 

1.50                           “Roche Territory” means, collectively, (a)
the United States of America (“U.S.”
or “U.S.A.” or “United States”) and its territories and
possessions where the patent laws of the United States are in force and (b) all
other countries in the Territory, excluding the PDL Sole Territory (the “Roche ROW Territory”).

 

1.51                           “Territory” means all the countries of the
world.

 

1.52                           “Third Party” means any person or entity
other than PDL, Roche, and their respective Affiliates.

 

9

 

1.53                           “Third Party License” means (a) any of the
license agreements set forth on Appendix B that were entered into by either
party, prior to the Effective Date, in order for Roche or PDL to manufacture,
use, import, offer for sale or sell Daclizumab or (b) any license agreement
entered into with a Third Party by either party in accordance with
Section 7.4(b).

 

1.54                           “Trademarks” means the trademark
“Zenapax®,” and all trademark registrations and applications therefor, and all
goodwill associated therewith, and all other trademarks owned by Roche (except
for any Roche housemarks or trade names) and used in connection with the sale
or promotion of Daclizumab in the Roche Territory.

 

1.55                           “Transplant Foreign Filing Expenses” means
ex parte out-of-pocket expenses (a) incurred by PDL after January 31,
1989, but prior to the Effective Date, in connection with the prosecution and
maintenance in the Roche ROW Territory of patent applications and patents
included within the PDL Patents or Joint Roche-PDL Patents and (b) reimbursed
by Roche pursuant to Section 7.2(a) of the 1999 PDL/Roche Agreement or
Section 5.3(a) of the F. Roche Agreement.

 

1.56                           “Transplant Indications” means all
indications that involve the suppression of rejection of transplanted organs,
bone marrow or other tissue, including, without limitation, solid organ
transplantation (including tolerance induction and xenotransplantation), bone
marrow transplantation, graft versus host disease and cell
transplantation.  In any event, if a given indication satisfies the
criteria for both an Autoimmune Indication and a Transplant Indication, 
such indication shall be deemed a Transplant Indication and not an Autoimmune
Indication, provided that an Autoimmune Indication shall not be deemed a Transplant
Indication merely because it may cause the need for a transplant (e.g., Type I
diabetes, even if it causes the need for an organ transplant).

 

1.57                           “Transplant Reversion” has the meaning set
forth in Section 5.2(a).

 

1.58                           “Valid Claim” means a claim in any issued
patent that has not been disclaimed or held unenforceable or invalid by a
decision of a court or governmental agency of competent jurisdiction by a
decision beyond right of review.

 

II.  LICENSE
GRANTS

 

2.1                                 License
Grant to PDL On Effective Date.

 

(a)                                  Subject
to the terms and conditions of this Amended and Restated Worldwide Agreement,
Roche grants to PDL and to PDL’s Affiliates the worldwide right and license
under the Roche Licensed Know-How and Roche Licensed Patents, to (i) develop,
use, market, promote, and detail Daclizumab in the Territory solely for use in
Autoimmune Indications and/or the Other Indications, and (ii) sell and offer
for sale Daclizumab in the Territory, under the AI Trademarks.

 

(b)                                 The
licenses set forth in Sections 2.1(a)(i) and 2.1(a)(ii) shall be exclusive
(even as to Roche) with respect to the Roche Licensed Know-How and Roche
Licensed Patents that Roche or its Affiliate solely owns or has an exclusive
license.  With respect to the Roche

 

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Licensed Know-How and Roche Licensed Patents to which Roche or its
Affiliate has a non-exclusive license, such licenses shall be sole,
non-exclusive licenses.  With respect to
the Roche Licensed Know-How and Roche Licensed Patents that Roche or its
Affiliate jointly owns, such licenses shall be sole licenses under Roche’s
interest in such Roche Licensed Know-How and Roche Licensed Patents.  As used in this Section 2.1(b) a “sole”
license means that the Roche will not grant to any Third Party a license that
overlaps with the scope of the licenses granted to PDL under Section 2.1(a).

 

(c)                                  Roche
grants to PDL and to PDL’s Affiliates, the nonexclusive right under the Roche
Licensed Know-How and Roche Licensed Patents to make, have made, and import
Daclizumab.

 

(d)                                 PDL
and its Affiliates may sublicense the rights and licenses granted to them under
Sections 2.1(a) and (c) to any Affiliate or Third Party, with the right to
further sublicense; provided, however, that without Roche’s written consent,
PDL shall not have the right to sublicense, during the Commercialization Term,
any of the [CONFIDENTIAL TREATMENT REQUESTED] rights or licenses in
Section 2.1(a) to any other entity, that is, as of the time of such
sublicensing, [CONFIDENTIAL TREATMENT REQUESTED] in the [CONFIDENTIAL TREATMENT
REQUESTED] (in at least one [CONFIDENTIAL TREATMENT REQUESTED] with
[CONFIDENTIAL TREATMENT REQUESTED), or [CONFIDENTIAL TREATMENT REQUESTED] in
the [CONFIDENTIAL TREATMENT REQUESTED] any [CONFIDENTIAL TREATMENT REQUESTED]
for the [CONFIDENTIAL TREATMENT REQUESTED] of [CONFIDENTIAL TREATMENT
REQUESTED] in any [CONFIDENTIAL TREATMENT REQUESTED].  It is expressly understood and agreed by Roche that PDL shall
have the right to sublicense its rights under Sections 2.1(a) and (c) to
[CONFIDENTIAL TREATMENT REQUESTED]. 
Notwithstanding the preceding limitation on sublicensing, PDL and its
Affiliates may use Third Party distributors in accordance with their customary
practices.

 

(e)                                  Subject
to the terms and conditions of this Amended and Restated Worldwide Agreement,
Roche grants to PDL and to PDL’s Affiliates a worldwide right and license (or
sublicense, as the case may be) under the Roche Licensed Know-How received by
PDL pursuant to the 1989 Agreements, 1999 Agreements or Section 2.4
hereof, the Roche Controlled Patents and only those Roche Owned Patents listed
in Schedule 2.8(a), to (i) develop, use, market, promote, and detail Other
Licensed Products in the Territory solely for use in Autoimmune Indications
and/or the Other Indications; (ii) sell and offer for sale Other Licensed
Products in the Territory; and (iii) to make, have made, and import Other
Licensed Products in the Territory.

 

(f)                                    The
license set forth in Section 2.1(e) shall be exclusive (even as to Roche) with
respect to the Roche Controlled Patents that Roche or its Affiliate solely owns
or has an exclusive license.  With
respect to the Roche Controlled Patents to which Roche or its Affiliate has a
non-exclusive license, such license shall be a sole, non-exclusive
license.  With respect to the Roche
Owned Patents that Roche or its Affiliate jointly owns, such license shall be a
sole license under Roche’s interest in such Roche Owned Patents.  PDL and its Affiliates shall have the right
freely to sublicense, through multiple tiers, the rights and licenses granted
to them under Section 2.1(e). 
Notwithstanding anything to the contrary in Section 2.1(e), the license
to Roche Licensed Know-How shall be non-exclusive.  Roche hereby covenants that, until the termination,

 

11

 

pursuant to Section 2.2(a), of the license set forth in
Section 2.1(e), it will not grant to any Third Party any right or license
under the (i) Roche Controlled Patents to which Roche or its Affiliate has a
non-exclusive license or (ii) Roche Owned Patents that Roche or its Affiliate
jointly owns, to (A)
develop, use, market, promote, and detail Other Licensed Products in the
Territory for use in Autoimmune Indications and/or the Other Indications; (B)
sell and offer for sale Other Licensed Products in the Territory; and (C) make,
have made, and import Other Licensed Products in the Territory.

 

(g)                                 If
PDL wishes to receive a license with respect to Other Licensed Products in
Autoimmune Indications and/or Other Indication, under any Roche Owned Patents
that are not listed in Schedule 2.8(a), it shall [CONFIDENTIAL TREATMENT
REQUESTED] and Roche shall [CONFIDENTIAL TREATMENT REQUESTED].

 

2.2                                 License
Grant to PDL On Reversion Effective Date or Put Right Effective Date.

 

(a)                                  Effective
only on the Reversion Effective Date or the Put Right Effective Date, Roche
hereby grants the following license to PDL: subject to the terms and conditions
of this Amended and Restated Worldwide Agreement, Roche grants to PDL and to
PDL’s Affiliates a worldwide right and license under the Roche Know-How and
Roche Patents, to develop, use, manufacture, have manufactured, market,
promote, import, offer for sale, sell and have sold Daclizumab and all Other
Licensed Products in the Field and in the Territory.  On the effectiveness
of the license set forth in this Section 2.2(a), the licenses granted in
Section 2.1(a), (c) and (e) shall terminate.  PDL and its Affiliates shall have the right freely to sublicense,
with the right to further sublicense, the right and license granted to them
under this Section 2.2(a).

 

(b)                                 For
Daclizumab, the license set forth in Section 2.2(a) shall be exclusive
(even as to Roche) with respect to the Roche Know-How and Roche Patents that
Roche or its Affiliate solely owns or has an exclusive license.  With respect to the Roche Know-How and Roche
Patents to which Roche or its Affiliate has a non-exclusive license, the
license set forth in Section 2.2(a) shall be a sole, non-exclusive
license.  With respect to the Roche
Know-How and Roche Patents that Roche or its Affiliate jointly owns, the
license set forth in Section 2.2(a) shall be a sole license under Roche’s
interest in such Roche Know-How and Roche Patents.  Roche hereby covenants that it will not grant to any Third Party
any right or license, under (i) the Roche Know-How and Roche Patents to which
Roche or its Affiliate has a non-exclusive license or (ii) the Roche Know-How
and Roche Patents that Roche or its Affiliate jointly owns, to develop, use, manufacture, have manufactured,
market, promote, import, offer for sale and sell Daclizumab in the Field and in
the Territory.

 

(c)                                  For
Other Licensed Products, the license set forth in Section 2.2(a) shall be
non-exclusive.  Notwithstanding the
preceding sentence, Roche hereby covenants that it will not grant licenses to
any Third Party under the Roche Patents to make, have made, use, sell, offer
for sale or import any Other Licensed Product.

 

2.3                                 [CONFIDENTIAL
TREATMENT REQUESTED]

 

12

 

2.4                                 Transfer
of Roche Licensed Know-How to PDL. Promptly after the Effective Date, Roche
shall transfer all Roche Licensed Know-How to PDL in the manner in which and to
the extent to which the parties, prior to the Effective Date, have transferred
know-how under the Joint Development Committee or the Joint Commercialization
Committee under the 1999 Agreements. 
Thereafter, and until the Reversion Effective Date or the Put Right
Effective Date, if Roche develops or gains Control of additional Roche Licensed
Know-How, Roche shall promptly provide such additional Roche Licensed Know-How
to PDL through the parties’ participation in the POC.  On either the Reversion Effective Date or the Put Right Effective
Date, Roche shall transfer to PDL any Roche Know-How not previously transferred
to PDL, including in particular, any Roche Know-How related to the Transplant
Indications.

 

2.5                                 License
Grants to Roche.

 

(a)                                  Subject
to the terms and conditions of this Amended and Restated Worldwide Agreement,
PDL grants to Roche and to Roche’s Affiliates, during the Commercialization
Term, the exclusive (even as to PDL) right and license under the PDL Know-How
and PDL Patents to (i) market, promote, and detail Daclizumab in the Roche
Territory solely for use in the Transplant Indications, and (ii) to sell and
offer for sale Daclizumab in the Roche Territory under the
Trademarks.   In addition, PDL
grants to Roche and to Roche’s Affiliates, the nonexclusive right under the PDL
Know-How and PDL Patents to make, have made and import Daclizumab, but only to
the extent reasonably necessary for Roche to carry out its rights and
obligations under this Amended and Restated Worldwide Agreement.  Roche
may sublicense the rights and licenses granted to Roche under this
Section 2.5, subject to PDL’s written consent, which consent PDL may not
unreasonably withhold.  It shall be deemed reasonable for PDL to withhold
consent with respect to sublicense by Roche of any of the rights or licenses to
any other entity that is [CONFIDENTIAL TREATMENT REQUESTED] (in at least one
[CONFIDENTIAL TREATMENT REQUESTED] with [CONFIDENTIAL TREATMENT REQUESTED]), or
[CONFIDENTIAL TREATMENT REQUESTED] in a [CONFIDENTIAL TREATMENT REQUESTED] any
[CONFIDENTIAL TREATMENT REQUESTED] for the [CONFIDENTIAL TREATMENT REQUESTED]
of any [CONFIDENTIAL TREATMENT REQUESTED].  Notwithstanding the preceding
sentence, Roche and its Affiliates may use Third Party distributors in
accordance with their customary practices. All sublicenses granted by Roche or
its Affiliates of the licenses set forth in this Section 2.5(a) shall
automatically terminate on the Reversion Effective Date or Put Right Effective
Date.

 

(b)                                 Subject
to the terms and conditions of this Amended and Restated Worldwide Agreement,
in particular the restrictions set forth in Section 3.1(b), PDL grants to
Roche and to Roche’s Affiliates the exclusive (even as to PDL) right and
license, including the right to grant sublicenses, under the PDL Know-How and
PDL Patents to use, develop, make, have made, sell, offer for sale, and import
the Excluded Products in the Roche Territory; provided, however that the
license granted under this Section 2.5(b) under [CONFIDENTIAL TREATMENT
REQUESTED] shall be nonexclusive.

 

(c)                                  PDL
hereby covenants that, until the expiration of [CONFIDENTIAL TREATMENT
REQUESTED], it will not make, have made, use, sell, offer for sale or import
any product in the Excluded Field Covered by [CONFIDENTIAL TREATMENT REQUESTED]
in

 

13

 

the Roche Territory, and it will not grant to any Third Party any right
or license under [CONFIDENTIAL TREATMENT REQUESTED] the right to make, have
made, use, sell, offer for sale or import any product in the Excluded Field in
the Roche Territory.

 

(d)                                 If
during the term of this Amended and Restated Worldwide Agreement, Roche or its
Affiliate challenges the validity or enforceability in any jurisdiction of
[CONFIDENTIAL TREATMENT REQUESTED], then PDL shall have the right to
[CONFIDENTIAL TREATMENT REQUESTED] to Roche under this Amended and Restated
Worldwide Agreement to PDL Patents that include [CONFIDENTIAL TREATMENT
REQUESTED].

 

(e)                                  Roche
hereby covenants that it shall not, nor shall it cause any Affiliate or
sublicensee to:

 

(i)                                     knowingly
use or practice, directly or indirectly, any PDL Know-How or PDL Patents for
any other purposes other than those expressly permitted by this Amended and
Restated Worldwide Agreement or any other written agreements in the Field
between the Parties currently in existence and not expressly superceded by this
Amended and Restated Worldwide Agreement, or which may later be entered into by
the Parties;

 

(ii)                                  market,
promote, detail, sell or offer for sale Daclizumab, during the
Commercialization Term, in any manner outside the scope of the licenses set
forth in Section 2.5(a), including, in particular, for any use in the
treatment of Autoimmune Indications or Other Indications; or

 

(iii)                               use,
develop, make, have made, sell, offer for sale or import Excluded Products in
any manner outside the scope of the licenses set forth in Section 2.5(b).

 

(f)                                    PDL
hereby covenants that it shall not, nor shall it cause any Affiliate or
sublicensee to market, promote, detail, sell or offer for sale Daclizumab,
during the Commercialization Term, in any manner outside the scope of the
licenses set forth in Sections 2.1 and 2.2.

 

2.6                                 Identification
of the Queen et al Patents.  Set forth on Appendix A is a list
identifying patents or patent applications that comprise the Queen et al.
Patents in the Roche Territory as of the Effective Date.   If there
are any changes, PDL shall update this list by delivering a supplement to Roche
no less frequently than once per year during the term of this Amended and
Restated Worldwide Agreement.

 

2.7                                 Cooperation
Regarding Third Party Licenses.   In the event Roche negotiates
and intends to enter into a license agreement with a Third Party with respect
to the right to make, use, sell, import, offer for sale or sale of any
[CONFIDENTIAL TREATMENT REQUESTED] under such Third Party’s intellectual
property, it shall so inform PDL and provide PDL the opportunity to participate
in such negotiations and enter into such license agreement or take a sublicense
thereunder with respect to [CONFIDENTIAL TREATMENT REQUESTED], on such terms as
are agreed by the parties.

 

14

 

2.8                                 Roche
Representations, Warranties and Covenants.  Roche hereby represents
and warrants as of the Effective Date as follows:

 

(a)                                  To
the best of Roche’s knowledge, Schedule 2.8(a) identifies the Roche Owned
Patents existing as of the Effective Date. 
To the extent that it is not prohibited from doing so, Roche agrees to
make available to PDL copies of such Roche Owned Patents promptly following the
Effective Date. Roche covenants that, to the extent any additional Roche Owned
Patents are identified by Roche subsequent to the Effective Date and to the
extent that it is not prohibited from doing so, it shall promptly inform PDL,
and Schedule 2.8(a) shall be revised to so reflect such additional Roche
Owned Patents.

 

(b)                                       Schedule 2.8(b)
identifies all of the license agreements under which Roche has rights to Roche
Controlled Patents existing as of the Effective Date (other than the license
rights from Genentech referred to in Section 2.3).  Roche agrees to make available to PDL copies
of such license agreements pursuant to which the Roche Controlled Patents were
licensed to Roche promptly following the Effective Date, to the extent not
already in PDL’s possession and to the extent that Roche has a right to do
so.  [CONFIDENTIAL TREATMENT REQUESTED]

 

(c)                                  Roche
has not granted any Third Party a license or other right that is currently in
effect under any of the Roche Owned Patents for any purpose.

 

(d)                                 To
Roche’s knowledge, Roche has complied with its obligation under 37 CFR §1.56(a)
to disclose to the United States Patent and Trademark Office, during the
pendency of each United States patent application included in the Roche Owned
Patents, information known to Roche to be material to the patentability of the
pending claims in such application.  None of the Roche Owned Patents is
involved in any interference or opposition proceeding, and, to Roche’s
knowledge, no such proceeding is being threatened with respect to any of the
Roche Owned Patents.

 

(e)                                  [CONFIDENTIAL
TREATMENT REQUESTED]

 

(f)                                    [CONFIDENTIAL
TREATMENT REQUESTED]

 

(g)                                 Roche
and its Affiliates have not granted to any Third Party in any Major Country,
any sublicense, under the license(s) to the PDL Know-How and PDL Patents that
Roche and its Affiliates received pursuant to the 1999 Agreements, to: (i)
promote and sell Daclizumab generally, and/or for use in Autoimmune Indications
or the Other Indications; or (ii) develop, make, use, import, offer for sale
and sell Other Licensed Products for any indication in the Field.  Roche shall, prior to the [CONFIDENTIAL
TREATMENT REQUESTED], disclose in writing to PDL all sublicenses that Roche or
its Affiliate have granted, under the PDL Know-How and PDL Patents, to develop,
make, use, import, promote, offer for sale and sell Daclizumab and Other
Licensed Products for any indication in the Field.  If any such sublicenses exist at such time, the parties, through
the POC, will work together to [CONFIDENTIAL TREATMENT REQUESTED] (including
[CONFIDENTIAL TREATMENT REQUESTED], where practicable) such sublicense.

 

15

 

(h)                                 Roche
covenants that, in the event that Roche [CONFIDENTIAL TREATMENT REQUESTED] of
the [CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT
REQUESTED] of [CONFIDENTIAL TREATMENT REQUESTED], through whatever means, on
PDL’s request, Roche will within [CONFIDENTIAL TREATMENT REQUESTED] days of
such request, meet and discuss with PDL the impact of such event on the
relationship between PDL and Roche at such time, and modify this Amended and
Restated Worldwide Agreement to the extent deemed appropriate by both parties.

 

2.9                                 Termination
of Certain Sublicenses.  If, prior
to the Effective Date, PDL and Roche or an Affiliate of Roche entered into any
agreement(s), other than the 1999 Agreements, wherein PDL granted Roche or such
Affiliate a sublicense with respect to Daclizumab or Other Licensed Product(s),
under any Third Party intellectual property rights licensed by PDL, then such
sublicenses are hereby terminated and replaced by the licenses set forth in
Section 2.5.

 

III.  DEVELOPMENT;
REGULATORY ISSUES

 

3.1                                 Development
by Roche.

 

(a)                                  Development
of Daclizumab.  Following the Effective Date, [CONFIDENTIAL TREATMENT
REQUESTED] after the Effective Date.  In
addition, to the extent Roche receives any data or other results of any
clinical trials pursuant to ongoing physician sponsored trials, Roche will
update the POC with respect to such trial results and data.  Further, Roche shall promptly forward to PDL
any requests for new [CONFIDENTIAL TREATMENT REQUESTED] studies involving
Daclizumab that Roche receives after the Effective Date.

 

(b)                                 Development
of Excluded Products.  Roche shall be solely responsible, at its sole
cost and expense and at its sole discretion, for the non-clinical, clinical,
and regulatory development of any Excluded Product.  Notwithstanding the foregoing, it is understood and agreed that
[CONFIDENTIAL TREATMENT REQUESTED] for any indication other than [CONFIDENTIAL
TREATMENT REQUESTED] without the written consent of PDL, such consent not to be
unreasonably withheld.  The Parties
recognize that it may be desirable to develop the Excluded Products for [CONFIDENTIAL
TREATMENT REQUESTED], in which case the POC shall discuss and recommend to the
parties whether [CONFIDENTIAL TREATMENT REQUESTED].  Following the Effective Date, Roche shall use Reasonable
Diligence in proceeding with the development and registration of Excluded
Products in the Roche Territory, to the extent permitted under this
Section 3.1(b).  If Roche fails to
exercise such diligence, PDL may terminate the license granted to Roche under
Section 2.5(b), but shall not be obligated to do so.

 

3.2                                 Development
by PDL.

 

(a)                                  General. 
Following the Effective Date, PDL shall be solely responsible, at its sole cost
and expense and at its sole discretion, for the non-clinical, clinical, and
regulatory development of Daclizumab for all indications in the Territory,
other than those trials referenced in Section 3.1(a), subject to the
restrictions set forth in Section 3.2(b).  All data and information

 

16

 

generated by PDL development activities pursuant to this
Section 3.2(a) shall be PDL Know-How.

 

(b)                                 Restriction
on PDL Development.  During the period commencing on the Effective
Date and ending at the end of the Commercialization Term, PDL agrees not to
pursue the clinical or regulatory development of Daclizumab for use in the
[CONFIDENTIAL TREATMENT REQUESTED] in the Roche Territory.

 

3.3                                 Assistance
by Roche.  At no cost to PDL (except as provided in the following
sentence), Roche will allow PDL to cross-reference Roche regulatory filings and
clinical data with respect to Daclizumab and will grant PDL reasonable access
during normal business hours to such regulatory filings and clinical
data.  To the extent Roche is required under applicable law, rule or
regulation, Roche, at PDL’s cost, shall promptly make all filings reasonably
required or useful to permit the use of the clinical materials, if any,
supplied pursuant to Section 4.5(a) (e.g., preparation and filing of
required technical reports, data summaries, or a regulatory dossier).

 

3.4                                 Adverse
Event Reporting.  Each party shall notify the other of all information
coming into its possession concerning any and all side effects, injury,
toxicity, pregnancy or sensitivity event associated with commercial or clinical
uses, studies, investigations or tests with Daclizumab, throughout the world, whether
or not determined to be attributable to Daclizumab (“Adverse Event Reports”).  The parties shall each
identify a person to coordinate the exchange of Adverse Event Reports (“Report Coordinators”) so as to enable
timely reporting of such Adverse Event Reports to appropriate governmental and
regulatory authorities consistent with all laws, rules and regulations. The
parties, through their Report Coordinators, have agreed in writing on formal
procedures for such exchange, which are embodied in the PDL-Roche Procedure for
the Exchange of Daclizumab Adverse Event Reports, dated December 2000 (“Pharmacovigilance Agreement”). 
Promptly after the Effective Date, Roche and PDL agree to cause their Report
Coordinators (a) to review the Pharmacovigilance Agreement and (b) to negotiate
in good faith an amendment to the Pharmacovigilance Agreement to reflect the
terms of this Amended and Restated Worldwide Agreement, if the Report
Coordinators agree that such an amendment is required.  Such
Pharmacoviligance Agreement (as amended, if applicable) shall survive the end
of the Commercialization Term.

 

3.5                                 Copies
of Responses.  Within a reasonable time frame prior to submission of
responses to any regulatory authority on product safety issues regarding
Daclizumab, a copy of a near final draft response will be provided to the other
party for review.  Final copies of responses submitted to any regulatory
authority will be provided to the other party within five (5) business days of
document finalization.

 

3.6                                 Regulatory
Actions.  The party responsible to interact with regulators on a
specific safety issue regarding Daclizumab must communicate action requested by
regulators to the other party without delay.  Such actions may include,
for example, change in label, Dear Doctor letter, trial on hold for clinical
safety reasons and the like.

 

3.7                                 Other
Safety Issues.  Either party may request that specific safety issues
be discussed, and the parties will establish a Joint Safety Committee (“JDSC”), consisting of an

 

17

 

equal number of representatives from each party, for such purpose. JDSC
discussion on such issues will be for the purpose of advising each party
concerning the collection and evaluation of safety data, and responding to any
significant safety issues raised, or requests made, by regulatory authorities.

 

3.8                                 Registration. 
PDL shall notify Roche in writing if PDL determines that clinical trial results
for Daclizumab justify filing an Application.  Roche shall provide cross
reference letters reasonably required or useful to allow PDL to make any such
filing and to allow PDL to carry out without delay any related clinical trial
in the Territory.  PDL shall be responsible for preparing periodic reports
required by the FDA related to any such Applications and for timely filing such
periodic reports with the FDA.  Through the POC, each party shall advise
and consult with the other with respect to any significant issues or questions
raised by any regulatory authorities with respect to Daclizumab.

 

IV.  COMMERCIALIZATION
AND MANUFACTURING

 

4.1                                 Commercialization
By Roche.

 

(a)                                  Commercialization
of Daclizumab by Roche.  The parties intend that, following the
Effective Date, Roche will continue to market and sell Daclizumab in the Transplant
Indications in the Roche Territory for the duration of the Commercialization
Term, under the Trademarks.  In particular, and without limitation, during
the Commercialization Term and in the Roche Territory, Roche shall be
responsible, at its sole cost and as permitted by applicable law, for (i) the
marketing, promotion, and detailing of Daclizumab for use in the Transplant
Indications; (ii) accepting and filling orders for Daclizumab received by it or
its Affiliates, including the distribution of Daclizumab to fill such orders;
(iii) booking all sales of Daclizumab attributable to such orders; and (iv) any
other activities reasonably related to Daclizumab that are permitted under the
license granted in Section 2.5(a) (the “Roche
Commercialization Activities”).  As provided in
Article VII, Roche shall pay royalties to PDL on Roche Net Sales.

 

(b)                                 Commercialization
of Excluded Products by Roche.  Roche, its Affiliates, or sublicensees
shall be solely responsible for, at its or their sole cost and as permitted by
law, all aspects of the commercialization of Excluded Products in the Roche
Territory, including but not limited to the booking of all sales of Excluded
Products in the Roche Territory.  Roche shall use commercially diligent
efforts to develop and commercialize such Excluded Products. Following receipt
of regulatory approval, Roche shall use Reasonable Diligence in proceeding with
the marketing, promotion and sale of Excluded Products in the Roche
Territory.   If Roche fails to exercise such diligence, PDL may
terminate the license granted to Roche under Section 2.5(b), but shall not
be obligated to do so.  As provided in
Article VII, Roche shall pay royalties to PDL on Roche Net Sales of
Excluded Products.

 

4.2                                 Commercialization
by PDL.

 

(a)                                  Commercialization
by PDL During Commercialization Term.  In the Roche Territory, PDL,
its Affiliates, or sublicensees shall have the right, but not the obligation,
at its or

 

18

 

their sole cost and as permitted by law, to pursue all aspects of the
commercialization of Daclizumab and any Other Licensed Products, excluding the
Roche Commercialization Activities. 
Without limiting the generality of the foregoing, in the Roche Territory
and during the Commercialization Term, PDL, its Affiliates, or sublicensees
shall have the right, but not the obligation, to commercialize Licensed
Products in Autoimmune Indications and Other Indications and to commercialize
Other Licensed Products in any indication. 
In particular, in the Roche Territory, PDL shall be responsible, at its
sole cost and as permitted by applicable law, for (i) the marketing, promotion,
and detailing of Daclizumab for use in the Autoimmune Indications or Other
Indications; (ii) accepting and filling orders for Daclizumab received by it or
its Affiliates, including the distribution of Daclizumab to fill such orders;
(iii) booking all sales of Daclizumab attributable to such orders; and (iv) any
other activities reasonably related to Daclizumab that are permitted under the
license granted in Section 2.1.  As
provided in Article VII, PDL shall pay royalties to Roche on PDL Net Sales
during the Commercialization Term.

 

(b)                                 Commercialization
by PDL Following Reversion Effective Date or Put Right Effective Date. 
Following the Reversion Effective Date or the Put Right Effective Date, PDL,
its Affiliates, or sublicensees shall have the right, but not the obligation,
to pursue, at its or their sole cost and as permitted by law, all aspects of
the commercialization of Daclizumab for all indications and for all Other
Licensed Products.  Following the
Reversion Effective Date or the Put Right Effective Date, in no event shall PDL
owe any royalties or any other compensation to Roche on sales of Daclizumab
under Section 7.2(c) in the Territory, whether by PDL, its Affiliates, or
their sublicensees.

 

4.3                                 Commercialization
in the PDL Sole Territory.  PDL, its Affiliates, or sublicensees shall
have the right, but not the obligation, to pursue, at its or their sole cost
and as permitted by law, all aspects of the commercialization of Licensed
Products in the PDL Sole Territory, including but not limited to the booking of
all sales of Licensed Products in the PDL Sole Territory.

 

4.4                                 Pricing. 
As between the parties, PDL has the sole right to determine the price for
Daclizumab or any Other Licensed Product that it sells and distributes. 
As between the parties, Roche has the sole right to determine the price for any
Excluded Product that it sells and distributes, and the sole right during the
Commercialization Term to determine the price for Daclizumab that it sells and
distributes; provided, however, that until the earlier of (a) [CONFIDENTIAL
TREATMENT REQUESTED] or (b) PDL’s receipt of a [CONFIDENTIAL TREATMENT
REQUESTED] from [CONFIDENTIAL TREATMENT REQUESTED] having the power to grant
[CONFIDENTIAL TREATMENT REQUESTED], stating that [CONFIDENTIAL TREATMENT
REQUESTED] will grant [CONFIDENTIAL TREATMENT REQUESTED] for Daclizumab in
[CONFIDENTIAL TREATMENT REQUESTED], Roche shall provide PDL with [CONFIDENTIAL
TREATMENT REQUESTED] of any [CONFIDENTIAL TREATMENT REQUESTED] in the
[CONFIDENTIAL TREATMENT REQUESTED] of Daclizumab and shall give [CONFIDENTIAL
TREATMENT REQUESTED] to any [CONFIDENTIAL TREATMENT REQUESTED] or [CONFIDENTIAL
TREATMENT REQUESTED] by PDL regarding the [CONFIDENTIAL TREATMENT REQUESTED] of
Daclizumab whether [CONFIDENTIAL TREATMENT REQUESTED].  It is expressly
understood that following the date which is the earliest of (i) [CONFIDENTIAL
TREATMENT

 

19

 

REQUESTED], (ii) the receipt of [CONFIDENTIAL TREATMENT REQUESTED] for
Daclizumab in [CONFIDENTIAL TREATMENT REQUESTED], or (iii) the Reversion
Effective Date or Put Right Effective Date, the obligations of either party in
the foregoing sentence shall terminate, and PDL shall have sole control
regarding the price of Daclizumab that it sells and distributes.

 

4.5                                 Manufacturing. 
References to Roche in Sections 4.5(a) and 4.5(b) shall include Roche, its
Affiliates [CONFIDENTIAL TREATMENT REQUESTED] and any sublicensees
manufacturing Daclizumab for Roche or its Affiliates.

 

(a)                                  Clinical
Manufacturing.

 

(i)                                     Supply. 
Subject to Section 4.5(a)(ii) and until [CONFIDENTIAL TREATMENT
REQUESTED].  All Daclizumab for the
development of Daclizumab for AI, regardless of form or formulation, shall be
manufactured in accordance with cGMPs and any other applicable regulatory or
legal requirements.  Through the POC, the parties shall meet periodically
and discuss the availability and timing of delivery of Daclizumab
hereunder.  [CONFIDENTIAL TREATMENT REQUESTED].  At PDL’s cost, PDL
shall perform any bridging studies that are necessary to enable PDL to use
PDL-manufactured Daclizumab to satisfy its clinical development requirements. 
On [CONFIDENTIAL TREATMENT REQUESTED], and any time thereafter, PDL shall have
the sole responsibility for the manufacture of all Daclizumab and placebo
required by PDL for the development of Daclizumab for AI.

 

(ii)                                  Limitations. 
From the Effective Date until [CONFIDENTIAL TREATMENT REQUESTED]. 
Notwithstanding anything to the contrary herein, from the Effective Date until
[CONFIDENTIAL TREATMENT REQUESTED] of Daclizumab.

 

(iii)                               Procedures. 
During the period commencing on the Effective Date and ending on [CONFIDENTIAL
TREATMENT REQUESTED], or under such other procedures as the POC determines.

 

(b)                                 Commercial
Manufacturing.  Effective on the Effective Date and subject to
Section 4.5(c) and this Section 4.5(b), each party shall each be
solely responsible for the manufacturing of all Daclizumab necessary to satisfy
the commercial requirements of itself, its Affiliates and its
sublicensees.  [CONFIDENTIAL TREATMENT REQUESTED]

 

(c)                                  Commercial
Manufacturing Following Exercise of the Roche Put Right.  In the event
that Roche exercises the Roche Put Right, [CONFIDENTIAL TREATMENT REQUESTED].

 

4.6                                 Roche
Diligence.  Following the Effective Date, Roche shall use Reasonable
Diligence in proceeding with the manufacturing, marketing and sale of
Daclizumab for use in the Transplant Indications in the Territory as
contemplated by this Amended and Restated Worldwide Agreement, and in a manner
comparable to its conduct of the manufacturing, marketing and sale of
Daclizumab [CONFIDENTIAL TREATMENT REQUESTED] during the

 

20

 

[CONFIDENTIAL TREATMENT REQUESTED] prior to the Effective Date. 
If Roche fails to exercise such diligence, PDL may exercise its rights
hereunder pursuant to Section 13.3 below, but shall not be obligated to do
so. Roche’s diligence obligations under this Section 4.6 shall expire on,
(i) if PDL exercises the Transplant Reversion or Roche exercises the Roche Put
Right, the completion of all activities and undertakings set forth in Sections
5.4(b), (c), (e) and (f), or (ii) if the Exercise Period expires without PDL
exercising the Transplant Reversion.  In
the event of a dispute as to whether Roche has used Reasonable Diligence, the
party that loses on this issue in an arbitration brought pursuant to
Article XV shall reimburse all of the other party’s arbitration expenses,
including reasonable attorneys’ fees relating to such arbitration.

 

V.  PDL
RIGHT TO ACQUIRE TRANSPLANT BUSINESS FROM ROCHE

 

5.1                                 General.  The parties intend that, subject to
the terms and conditions of this Amended and Restated Worldwide Agreement, the
commercialization of Daclizumab in the Transplant Indications in the Roche
Territory will continue to be an exclusive Roche responsibility unless and
until PDL decides to undertake commercialization of Daclizumab in the
Transplant Indications under the terms provided in this Article V. 
Subject to the limitations set forth below, PDL shall have the option to
terminate Roche’s rights with respect to Daclizumab, which, if exercised, would
allow PDL to replace Roche as the party responsible for the promotion, sales,
distribution and manufacturing of Daclizumab for use in the Transplant
Indications in the Roche Territory.  In the event that PDL exercises such
option, PDL shall pay an exercise fee as set forth in Section 5.2(c)
below.  In addition, Roche shall have the right to “put” to PDL the rights
to commercialize Daclizumab in the Roche Territory prior to PDL’s exercise of
such option and payment of the exercise fee, as provided in Section 5.3
below.

 

5.2                                 PDL
Transplant Reversion.

 

(a)                                  Grant;
Exercise Period.  PDL is hereby granted the right, subject to the
terms of this Section 5.2(a), to terminate Roche’s license rights under
Section 2.5 for Daclizumab (the “Transplant
Reversion”).  Such right may be exercised by PDL in its
discretion at any time during the period commencing [CONFIDENTIAL TREATMENT
REQUESTED] and ending [CONFIDENTIAL TREATMENT REQUESTED] (the “Exercise Period”) by written notice to
Roche and payment of the Reversion Exercise Fee set forth in
Section 5.2(c).

 

(b)                                 Effective
Date of Exercise.  If, during the Exercise Period, PDL provides Roche
with written notice that PDL desires to exercise the Transplant Reversion,
[CONFIDENTIAL TREATMENT REQUESTED] shall determine the effective date (the “Reversion Effective Date”) of such
exercise and reversion of rights, which shall be at least [CONFIDENTIAL
TREATMENT REQUESTED] after the date of PDL’s written notice that it desires to
exercise the Transplant Reversion, but in no event be later than [CONFIDENTIAL
TREATMENT REQUESTED].

 

(c)                                  Reversion
Exercise Fee.  PDL shall pay to Roche an exercise fee based on the
AAGS, which exercise price shall be calculated as follows (the “Reversion Exercise Fee”):

 

21

 

	
  AAGS

  	
   

  	
  Exercise
  Price

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more but not more than [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more but not more than [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  not more than
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

(d)                                 Payment
of Reversion Exercise Fee.  Payment of such Reversion Exercise Fee
shall be made in two installments: [CONFIDENTIAL TREATMENT REQUESTED]
of such Reversion Exercise Fee shall be made within [CONFIDENTIAL TREATMENT
REQUESTED] of PDL’s written notice that it is exercising the Transplant
Reversion and the remaining [CONFIDENTIAL TREATMENT REQUESTED] of such
Reversion Exercise Fee shall be made on the later of the [CONFIDENTIAL
TREATMENT REQUESTED], or the [CONFIDENTIAL TREATMENT REQUESTED] after
completion of all activities and undertakings set forth in Sections
[CONFIDENTIAL TREATMENT REQUESTED].

 

5.3                                 Roche
Put Right Regarding Transplant Reversion.

 

(a)                                  If,
at any time from the Effective Date until Roche receives written notice from
PDL pursuant to Section 5.2(a) of PDL’s exercise of the Transplant
Reversion, Roche desires that all of its rights to market, sell, promote and
otherwise commercialize Daclizumab in the Roche Territory should revert to PDL,
Roche shall have such right, on [CONFIDENTIAL TREATMENT REQUESTED] written
notice to PDL (the “Roche Put Right”);
provided, however, that such right shall not be exercisable by Roche before
[CONFIDENTIAL TREATMENT REQUESTED] or after [CONFIDENTIAL TREATMENT
REQUESTED].  If so exercised, the effective date of such reversion (the “Put Right Effective Date”) shall be deemed
to be that date [CONFIDENTIAL TREATMENT REQUESTED] following the date of such
written notice.  The Roche Put Right shall expire on [CONFIDENTIAL
TREATMENT REQUESTED] if not previously exercised.

 

(b)                                 On
receipt from Roche of its notice of exercise of the Roche Put Right, PDL would
pay to Roche an exercise fee based on the AAGS, which exercise price shall be
calculated as follows (the “Put Exercise Fee”):

 

22

 

	
  AAGS

  	
   

  	
  Exercise
  Price

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more but not more than [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  [CONFIDENTIAL TREATMENT
  REQUESTED] or more but not more than [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  not more than
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

(c)                                  Payment
of such Put Exercise Fee shall be made in two installments: 
[CONFIDENTIAL TREATMENT REQUESTED] of such Put Exercise Fee shall be made
within [CONFIDENTIAL TREATMENT REQUESTED] of Roche’s written notice that it is
exercising the Roche Put Right and the remaining [CONFIDENTIAL TREATMENT
REQUESTED] of such Put Exercise Fee shall be made on the later of the
[CONFIDENTIAL TREATMENT REQUESTED], or the [CONFIDENTIAL TREATMENT REQUESTED]
after completion of all activities and undertakings set forth in Sections
[CONFIDENTIAL TREATMENT REQUESTED].

 

(d)                                 In
the event of exercise by Roche of the Roche Put Right, PDL agrees to do the
following, until [CONFIDENTIAL TREATMENT REQUESTED]:

 

(i)                                     to
the extent [CONFIDENTIAL TREATMENT REQUESTED], use [CONFIDENTIAL TREATMENT
REQUESTED] efforts to maintain [CONFIDENTIAL TREATMENT REQUESTED] in effect as
of the Put Right Effective Date by and between Roche and Third Party
[CONFIDENTIAL TREATMENT REQUESTED] with respect to Daclizumab for use in the
Transplant Indications in the US; and

 

(ii)                                  pay
to Roche those payments provided in Section 7.2(d).

 

5.4                                 Transfer
and Assignment of Daclizumab Assets; Cooperation.  As soon as practicable following PDL’s notice of its
exercise of the Transplant Reversion, or on delivery by Roche of written
exercise of the Roche Put Right, Roche shall take all steps reasonable and
appropriate to facilitate and shall initiate, or to cause its Affiliates to
facilitate or initiate, the assignment to PDL of all of Roche’s and its
Affiliates’ right, title and interest in and to the Daclizumab Assets and the transfer
of Daclizumab commercialization and regulatory responsibilities in the Roche
Territory from Roche to PDL. Such actions shall include, without limitation:

 

(a)                                  cooperate
and communicate with PDL as PDL may reasonably request in effectuating such transfer,
including responding in a reasonable time frame to all reasonable

 

23

 

inquiries and requests of PDL with respect to the nature or extent of
the Daclizumab Assets, including providing copies of all relevant documents for
PDL’s use [CONFIDENTIAL TREATMENT REQUESTED];

 

(b)                                 assign
and transfer all Regulatory Approvals and other Daclizumab Assets described in
Section 1.14(h) from Roche to PDL (excluding manufacturing approvals);

 

(c)                                  identify
all distributors and other Third Parties involved in the promotion, sale and
distribution of Daclizumab, and as and to the extent possible offering to
assign agreements with such Third Parties to PDL, to the extent not adverse to
the interests of Roche to do so;

 

(d)                                 on
PDL’s request and at PDL’s sole discretion, Roche shall assign and shall cause
its Affiliates to assign, to PDL any contracts (or relevant portions thereof)
then in force between Roche and any Third Parties regarding the marketing,
promotion, and sale of Daclizumab, to the extent assignable, and where not so
assignable, use its reasonably diligent efforts to obtain consent to such
assignment;

 

(e)                                  prepare,
execute and deliver assignments to PDL of the Roche Owned Patents listed on
Schedule 2.8(a) and record, where appropriate with the relevant
authorities, such assignments to PDL of all of Roche’s and its Affiliates’
right, title and interest in and to the Roche Owned Patents listed on
Schedule 2.8(a); and

 

(f)                                    prepare,
execute and deliver assignments to PDL of all of Roche’s and its Affiliates’
right, title, and interest in and to the Trademarks.

 

In such matters, Roche shall bear the [CONFIDENTIAL TREATMENT
REQUESTED] of its [CONFIDENTIAL TREATMENT REQUESTED] and associated
[CONFIDENTIAL TREATMENT REQUESTED] but PDL shall [CONFIDENTIAL TREATMENT
REQUESTED] for any [CONFIDENTIAL TREATMENT REQUESTED] to [CONFIDENTIAL
TREATMENT REQUESTED] (such as [CONFIDENTIAL TREATMENT REQUESTED]) required in
connection with such transfers, together with any [CONFIDENTIAL TREATMENT
REQUESTED] for [CONFIDENTIAL TREATMENT REQUESTED] requested by PDL and agreed
to by Roche.  Roche shall use its commercially diligent efforts to ensure
that all such transfer activities shall be completed as expeditiously as
possible, but in any event by the Reversion Effective Date or the Put Right
Effective Date.  All such activities
shall be coordinated through and overseen by the POC, as provided in
Section 6.2.

 

5.5                                 Effect
of Exercise.  Effective immediately on either the Reversion Effective
Date or the Put Right Effective Date:

 

(a)                                  the
license granted to Roche under Section 2.5(a) shall terminate and all such
rights shall revert to PDL; except that, following any Put Right Effective
Date, the license granted to Roche to manufacture Daclizumab in the second
sentence of Section 2.5(a) shall survive, to the extent provided in
Section 2.5(a);

 

(b)                                 the
license granted to PDL in Section 2.2 shall be in full force and effect;

 

24

 

(c)                                  PDL
shall have the right to purchase all or any portion of Roche’s then existing
inventory of bulk and/or finished Daclizumab, and Roche agrees to so sell such
bulk and/or finished Daclizumab, at a price equal to [CONFIDENTIAL TREATMENT
REQUESTED], as necessary to meet commercial requirements; and

 

(d)                                 PDL
thereafter shall commence booking all sales of Daclizumab in the Roche
Territory, whether sold under a Trademark or the AI Trademark or any other
trademark.

 

5.6                                 No
Effect on Excluded Field and Excluded Products.  Any exercise of
either the Transplant Reversion or the Roche Put Right shall have no effect on
Roche’s rights in and to the Excluded Field and the Excluded Product, or on the
license granted to Roche under Section 2.5(b), except as provided in
Section 13.3.

 

5.7                                 No
Assumption of Liabilities.  Except
as specifically assumed by PDL in writing in connection with an assignment
and/or sublicense to PDL of any Third Party contracts comprising the Daclizumab
Assets pursuant to Section 5.4, PDL shall assume no liabilities of Roche
or its Affiliates as a result of either the exercise by PDL of the Transplant
Reversion or the exercise by Roche of the Roche Put Right, including (a) tax
liabilities; (b) any liabilities relating to accounts payable, indebtedness,
accrued liabilities or legal services, accounting services, financial advisory
services or investment banking services or other professional services; (c) any
wages, salaries or benefits or any other liabilities relating to the employment
of any current or former employee; (d)  any rent, wages or other
obligations of any kind payable by Roche; (e) any environmental liabilities;
and (f) any liabilities with respect to Third Party contracts not expressly
assumed by PDL hereunder.  Roche shall
remain responsible for all liabilities associated with its sale, prior to the
Reversion Effective Date or Put Right Effective Date (as applicable), of
Daclizumab, and its manufacture of Daclizumab, including without limitation
uncollected amounts, returns, recalls, and third party royalties (subject to
Section 7.4) associated with such sales.

 

5.8                                 Effect
of [CONFIDENTIAL TREATMENT REQUESTED].  In the event of any
[CONFIDENTIAL TREATMENT REQUESTED], the following shall occur:

 

(a)                                  The
Roche Put Right shall immediately terminate;

 

(b)                                 The
exercisability of the Transplant Reversion shall [CONFIDENTIAL TREATMENT
REQUESTED] and the Exercise Period shall be deemed to commence on the date that
is [CONFIDENTIAL TREATMENT REQUESTED] after the effective date of such
[CONFIDENTIAL TREATMENT REQUESTED] and shall extend until [CONFIDENTIAL
TREATMENT REQUESTED].  In the event PDL exercises such Transplant
Reversion during such [CONFIDENTIAL TREATMENT REQUESTED] time, PDL would pay to
Roche an exercise fee based on the AAGS, which exercise price shall be
calculated as follows (the “[CONFIDENTIAL
TREATMENT REQUESTED] Exercise Fee”):

 

	
  AAGS

  	
   

  	
  Exercise
  Price

  
	
   

  	
   

  	
   

  
	
  more than [CONFIDENTIAL
  TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  more than [CONFIDENTIAL TREATMENT REQUESTED] but not more than
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  more than [CONFIDENTIAL
  TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  not more than
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

25

 

and

 

(c)                                  Payment
of such [CONFIDENTIAL TREATMENT REQUESTED] Exercise Fee shall be made  in
two installments: [CONFIDENTIAL TREATMENT REQUESTED] of such [CONFIDENTIAL
TREATMENT REQUESTED] Exercise Fee shall be made within [CONFIDENTIAL TREATMENT
REQUESTED] of PDL’s written notice that it is exercising the Transplant
Reversion and the remaining [CONFIDENTIAL TREATMENT REQUESTED] of such
[CONFIDENTIAL TREATMENT REQUESTED] Exercise Fee shall be made on the later of
the [CONFIDENTIAL TREATMENT REQUESTED], or [CONFIDENTIAL TREATMENT REQUESTED]
after completion of all activities and undertakings set forth in Sections
[CONFIDENTIAL TREATMENT REQUESTED].

 

VI.  PRODUCT OPERATING COMMITTEE

 

6.1                                 Dissolution
of Committees under 1999 Agreements.  Effective
as of the Effective Date, the Joint Development Committee and the Joint
Commercialization Committee, as authorized under the 1999 Agreements, shall be
dissolved.

 

6.2                                 Product
Operating Committee.

 

(a)                                  Within
thirty (30) days after the Effective Date, PDL and Roche shall form a Product
Operating Committee (“POC”)
composed of [CONFIDENTIAL TREATMENT REQUESTED] representatives of each party
who shall be appointed (and may be replaced at any time, subject to the terms
of this Section 6.2(a)) by such party with the prior written consent of
the other party in accordance with this Amended and Restated Worldwide
Agreement.  Each POC representative
shall have suitable experience and expertise in the development and
commercialization of biopharmaceutical drugs.  Each party shall each have
the right to replace its representatives from time to time, provided that such
party obtains the written consent of the other party on such replacement in
advance thereof.

 

(b)                                 The
POC shall meet not less than [CONFIDENTIAL TREATMENT REQUESTED] on such dates
and at such times as agreed to by PDL and Roche, alternating between Fremont,
California and Nutley, New Jersey or such other locations as the POC
determines.   On the determination of the POC, any such meetings may
be conducted by

 

26

 

teleconference or videoconference.  Other representatives of the
parties and their invitees may also attend the POC meetings.

 

(c)                                  The
POC shall be responsible for (i) exchanging information regarding the
activities conducted by the parties, their sublicensees or their respective
Affiliates under this Amended and Restated Worldwide Agreement, including
without limitation, [CONFIDENTIAL TREATMENT REQUESTED] of any [CONFIDENTIAL
TREATMENT REQUESTED] with respect to [CONFIDENTIAL TREATMENT REQUESTED],
(ii) making recommendations to the parties regarding the [CONFIDENTIAL
TREATMENT REQUESTED] for [CONFIDENTIAL TREATMENT REQUESTED] for the
[CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED],
(iii) discussing the [CONFIDENTIAL TREATMENT REQUESTED] for [CONFIDENTIAL
TREATMENT REQUESTED] the [CONFIDENTIAL TREATMENT REQUESTED] for [CONFIDENTIAL
TREATMENT REQUESTED] and the potential for a [CONFIDENTIAL TREATMENT REQUESTED]
between the [CONFIDENTIAL TREATMENT REQUESTED] to accomplish this goal, (iv)
coordinating and overseeing the [CONFIDENTIAL TREATMENT REQUESTED] to PDL of
the [CONFIDENTIAL TREATMENT REQUESTED] pursuant to Section [CONFIDENTIAL
TREATMENT REQUESTED]; and (vi) such other activities as mutually agreed by
Roche and PDL[CONFIDENTIAL TREATMENT REQUESTED].  If PDL elects to
exercise its Transplant Reversion under Section 5.2, or Roche exercises
its Roche Put Right under Section 5.3, the POC will coordinate transition
of manufacturing and commercialization responsibilities to PDL over the period
specified in this Amended and Restated Worldwide Agreement; the POC shall
dissolve after the completion of such transition [CONFIDENTIAL TREATMENT
REQUESTED].  The POC shall have no authority to determine pricing of
Daclizumab by either party in its respective indications nor shall the POC have
any authority to make any decisions regarding Daclizumab that shall take effect
or continue to remain in effect, after the Reversion Effective Date or Put
Right Effective Date.

 

(d)                                 In
general, the POC is not intended to be a decision-making body with respect to
either party’s efforts to develop or commercialize Daclizumab.  However,
all required decision making with respect to matters before the POC shall be
effected [CONFIDENTIAL TREATMENT REQUESTED]

 

VII.  COMPENSATION

 

7.1                                 Payment
to Roche.  In consideration for the rights and licenses granted by
Roche under this Amended and Restated Worldwide Agreement, PDL shall pay to
Roche a non-refundable, non-creditable fee in the sum of Eighty Million U.S.
Dollars (US$80,000,000), due and payable no later than [CONFIDENTIAL TREATMENT
REQUESTED] after the Effective Date.

 

7.2                                 Royalties.

 

(a)                                  Royalties
to PDL on Daclizumab Sales.

 

27

 

(i)                                     Royalty
Rate.  Roche shall pay PDL royalties on Roche Net Sales commencing as
of the Effective Date, at a royalty rate determined by annual (or annualized,
as the case may be for partial years) Roche Net Sales as follows:

 

	
  Annual Roche Net Sales (US$)

  	
   

  	
  Royalty
  Rate

  
	
   

  	
   

  	
   

  
	
  Up to and including
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED] but not exceeding [CONFIDENTIAL TREATMENT
  REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED] but not exceeding [CONFIDENTIAL TREATMENT
  REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED] but not exceeding [CONFIDENTIAL TREATMENT
  REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

No adjustment will be
made to the royalty rates specified in this Section 7.2(a), regardless of
whether the manufacture, use, sale, or importation of Daclizumab by Roche or
its Affiliates in a particular country is covered by a Valid Claim of a PDL
Patent.

 

(ii)                                  Expiration
of Roche’s Royalty Obligations.  Roche’s obligation to pay royalties
to PDL under this Article VII shall expire (A) with respect to sales of
Daclizumab in the [CONFIDENTIAL TREATMENT REQUESTED], on [CONFIDENTIAL
TREATMENT REQUESTED], and (B) with respect to sales of Daclizumab in the [CONFIDENTIAL
TREATMENT REQUESTED], on [CONFIDENTIAL TREATMENT REQUESTED]. 
Notwithstanding the above, Roche’s obligation to pay royalties to PDL under
this Section 7.2(a) shall expire on the first to occur, if any, of the
Reversion Effective Date or the Put Right Effective Date.

 

(b)                                 Royalties
to PDL on Excluded Product Sales.

 

(i)                                     Royalty
Rate.  Roche shall pay PDL royalties on Roche Net Sales of Excluded
Products at a royalty rate determined by annual Roche Net Sales of Excluded
Products as follows, as measured on a calendar year basis:

 

28

 

	
  Annual Roche Net Sales of Excluded

  Products (US$)

  	
   

  	
  Royalty
  Rate

  
	
   

  	
   

  	
   

  
	
  Up to and including
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

(ii)                                  Term
of Royalty Obligations.  Roche’s obligation to pay royalties to PDL
under Section 7.2(b)(i) with respect to any Excluded Product shall expire,
on a country-by-country basis, on the later of (A) the last date on which the
manufacture, use, sale, or importation in such country in the Roche Territory,
by Roche, its Affiliates, or sublicensees (other than PDL, its Affiliates, and
sublicensees) of such Excluded Product is covered under a Valid Claim of a PDL
Patent (which determination, if not otherwise covered by a Valid Claim in the
country of use, sale, or importation shall be based on whether or not covered
by a Valid Claim in the country of manufacture), or (B) the [CONFIDENTIAL
TREATMENT REQUESTED] of the first commercial sale by Roche, its Affiliates, or
sublicensees (other than PDL, its Affiliates, or sublicensees) of such Excluded
Product in such country.

 

(c)                                  Royalties
to Roche.

 

(i)                                     Royalty
Rate.  PDL shall pay Roche royalties on PDL Net Sales at a royalty
rate determined by annual PDL Net Sales as follows, as measured on a calendar
year basis:

 

	
  Annual PDL Net Sales (US$)

  	
   

  	
  Royalty
  Rate

  
	
   

  	
   

  	
   

  
	
  Up to and including
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  
	
   

  	
   

  	
   

  
	
  Amount in excess of
  [CONFIDENTIAL TREATMENT REQUESTED]

  	
   

  	
  [CONFIDENTIAL

  TREATMENT REQUESTED]

  

 

(ii)                                  Term
of PDL’s Royalty Obligations Where Transplant Reversion Exercised. 
PDL’s obligation to pay royalties pursuant to Section 7.2(c)(i) shall
expire on the earlier of the Put Right Effective Date or the Reversion
Effective Date.

 

(iii)                               Term
of PDL’s Royalty Obligations Where No Transplant Reversion Exercised. 
In the event PDL does not exercise the Transplant Reversion and Roche does not
exercise the Roche Put Right, PDL’s obligation to pay royalties to Roche under
Section 7.2(c)(i) shall expire, on a country-by-country basis, on the
later of (A) the last date on which the manufacture, use, sale, or importation
in such country in the Roche Territory, by PDL, its

 

29

 

Affiliates, or sublicensees (other than Roche, its Affiliates, and
sublicensees) of Daclizumab is covered under a Valid Claim of a Roche Patent
(which determination, if not otherwise covered by a Valid Claim in the country
of use, sale or importation, shall be based on whether or not covered by a
Valid Claim in the country of manufacture), or (B) the [CONFIDENTIAL TREATMENT
REQUESTED] of the first commercial sale by PDL, its Affiliates, or sublicensees
(other than Roche, its Affiliates, or sublicensees) of Daclizumab in such
country.

 

(d)                                 Payment
to Roche in Event of Roche Put Right Exercise.  In the event Roche
exercises the Roche Put Right, following the Put Right Effective Date, and until
[CONFIDENTIAL TREATMENT REQUESTED]. PDL shall pay Roche (i) for commercial
supply of finished and packaged Daclizumab from Roche as set forth in
Section 4.5(c), a transfer price equal to the [CONFIDENTIAL TREATMENT
REQUESTED] and (ii) an amount determined by the parties in good faith to be
equal to [CONFIDENTIAL TREATMENT REQUESTED] for its [CONFIDENTIAL TREATMENT
REQUESTED] and [CONFIDENTIAL TREATMENT REQUESTED] efforts that are
[CONFIDENTIAL TREATMENT REQUESTED]; provided that, PDL’s payment obligation
under this Section 7.2(d) for any given calendar quarter shall in no event
exceed a maximum (the “Payment Ceiling”) calculated as follows:

 

Payment Ceiling = [CONFIDENTIAL TREATMENT REQUESTED]

 

7.3                                 Foreign
Filing Expenses Credited Against Royalties.  Roche shall have the
right to credit [CONFIDENTIAL TREATMENT REQUESTED] of all Transplant Foreign
Filing Expenses actually paid to PDL, less credits already taken under the 1989
and 1999 Agreements, against future royalties due to PDL on sales of Daclizumab
pursuant to this Article VII, provided that such credits, when added to
the offset provided for in Section 7.4 below, may not in the aggregate
reduce the royalties to be paid to PDL to less than [CONFIDENTIAL TREATMENT
REQUESTED] of the amount that would otherwise be due pursuant to
Section 7.2(a) hereof.

 

7.4                                 Offset
for Third Party Licenses.

 

(a)                                  Appendix
B  sets forth the allocation
between the parties of the costs associated with each Third Party License
entered into prior to the Effective Date. 
Such costs include license fees and any other fixed costs associated
with the Third Party License as well as any royalties.  After the
Effective Date, the parties shall, within [CONFIDENTIAL TREATMENT REQUESTED] of
the end of each [CONFIDENTIAL TREATMENT REQUESTED], reimburse each other in
accordance with this Section 7.4 to effect the agreed-on sharing of such
license fees and other fixed costs.  Both parties hereby acknowledge that
[CONFIDENTIAL TREATMENT REQUESTED] has obtained a required license from the
[CONFIDENTIAL TREATMENT REQUESTED] to use the [CONFIDENTIAL TREATMENT
REQUESTED] in order to carry out the activities anticipated by this Amended and
Restated Worldwide Agreement and that [CONFIDENTIAL TREATMENT REQUESTED] has
reimbursed [CONFIDENTIAL TREATMENT REQUESTED] under the 1989 Agreements so that
the license fees and other fixed costs of the [CONFIDENTIAL TREATMENT
REQUESTED] license have been shared [CONFIDENTIAL TREATMENT REQUESTED].

 

30

 

(b)                                 If
PDL and Roche agree in writing, after the Effective Date, that either party
must obtain an additional license from an independent Third Party in order for
Roche or PDL to manufacture, use, import, offer for sale or sell Daclizumab and
if PDL and Roche agree on the terms of such license, then such license shall be
deemed a Third Party License and the parties shall, subject to Sections 2.3,
7.4(c) and 7.4(d), share the cost of such Third Party License [CONFIDENTIAL
TREATMENT REQUESTED].  Such cost includes license fees and any other fixed
costs associated with such Third Party License as well as any royalties. 
The parties shall, within [CONFIDENTIAL TREATMENT REQUESTED] of the end of each
[CONFIDENTIAL TREATMENT REQUESTED], reimburse each other in accordance with this
Section 7.4 to effect a [CONFIDENTIAL TREATMENT REQUESTED] of such license
fees and other fixed costs.

 

(c)                                  Notwithstanding
anything to the contrary herein, the following mechanism shall apply to the
royalty portion of any Third Party Licenses to the extent such royalties arise
due to sales of Daclizumab by Roche or its Affiliates or sublicensees during
the time that Roche is obligated to pay royalties to PDL pursuant to
Section 7.2(a):  (i) PDL’s share of
such Third Party royalties shall be accrued against and deducted from any
amounts due to PDL from Roche pursuant to Section 7.2(a) if Roche pays the
royalties due under the Third Party License to such Third Party, and (ii)
Roche’s share of the royalties portion of the cost of any Third Party License
shall be accrued in favor of and added to any amounts due to PDL from Roche
pursuant to Section 7.2(a) if PDL pays the royalties due under the Third
Party License to such Third Party; provided, however, that the total amounts of
all deductions made by Roche pursuant to clause (i) above (without taking into
account any additions made pursuant to clause (ii)) shall not exceed
[CONFIDENTIAL TREATMENT REQUESTED] of the amount that would otherwise be due to
PDL, pursuant to Section 7.2(a), in any calendar quarter if no adjustments
were permitted to account for payments made pursuant to Third Party
Licenses;  provided further that the sum
of Roche’s royalty obligations to PDL under Section 7.2(a) in any calendar
quarter, plus Roche’s share of those royalties payable for such calendar
quarter to Third Parties pursuant to Third Party Licenses shall not exceed
[CONFIDENTIAL TREATMENT REQUESTED] of the amount that would otherwise be due to
PDL, pursuant to Section 7.2(a), in such calendar quarter if no
adjustments were permitted to account for payments made pursuant to Third Party
Licenses.  Royalty payments made by
Roche or PDL pursuant to Third Party Licenses that, due to the limitations set
forth in the preceding sentence, cannot be deducted from, or added to, the
amount to be paid to PDL by Roche under Section 7.2(a), may be carried
forward to subsequent calendar quarters. 
An example of the foregoing principles is set forth in Appendix D.

 

(d)                                 Notwithstanding
anything to the contrary herein, the following mechanism shall apply to the
royalty portion of any Third Party Licenses to the extent such royalties arise
due to sales of Daclizumab by PDL or its Affiliates or sublicensees during the
time that PDL is obligated to pay royalties to Roche, pursuant to
Section 7.2(c):  (i) Roche’s share
of such Third Party royalties shall be accrued against and deducted from any
amounts due to Roche from PDL pursuant to Section 7.2(c) if PDL pays the
royalties due under the Third Party License to such Third Party, and (ii) PDL’s
share of such Third Party royalties shall be accrued in favor of and added to
any amounts due to Roche from PDL pursuant to Section 7.2(c) if Roche pays
the royalties due under the Third Party License to such Third Party; provided,
however, that the royalty payments made by PDL to Roche pursuant to
Section 7.2(c) shall not, as a result of the adjustments set forth in this
Section 7.4(d), be reduced to less than [CONFIDENTIAL

 

31

 

TREATMENT REQUESTED] of PDL Net Sales. 
Royalty payments made by Roche or PDL pursuant to Third Party Licenses
that, due to the maximum royalty rate set forth in the preceding sentence,
cannot be deducted from, or added to, the amount to be paid to PDL by Roche
under Section 7.2(c), may be carried forward to subsequent calendar years.

 

(e)                                  If
PDL exercises the Transplant Reversion or Roche exercises the Roche Put Right,
then commencing on the Reversion Effective Date or the Put Right Effective Date
(as applicable): (i) Roche shall not have any further obligation pursuant to
this Section 7.4 to share the costs of, or pay directly, any royalties
pursuant to any Third Party Licenses on account of sales of Daclizumab by PDL
or its Affiliates or sublicensees, and (ii) PDL shall thereafter have sole
responsibility for paying such royalties.

 

(f)                                    If
the Exercise Period expires without PDL exercising the Transplant Reversion or
Roche exercising the Roche Put Right, then:

 

(i)                                     commencing
on [CONFIDENTIAL TREATMENT REQUESTED], with respect to sales of Daclizumab in
the [CONFIDENTIAL TREATMENT REQUESTED] by Roche and its Affiliates and
sublicensees, or [CONFIDENTIAL TREATMENT REQUESTED], with respect to sales of
Daclizumab in the [CONFIDENTIAL TREATMENT REQUESTED] by Roche and its
Affiliates and sublicensees, (A) PDL shall not have any further obligation
pursuant to this Section 7.4 to share the costs of, or pay directly, any
royalties pursuant to any Third Party Licenses on account of sales of
Daclizumab by Roche or its Affiliates or sublicensees, and (B) Roche shall
thereafter have sole responsibility for paying such royalties.

 

(ii)                                  commencing
on, a country-by-country basis, with the expiration of PDL’s obligations to pay
royalties to Roche, pursuant to Section 7.2(c), in such country with
respect to the sale of Daclizumab by PDL and its Affiliates and sublicensees,
(A) Roche shall not have any further obligation pursuant to this
Section 7.4 to share the costs of, or pay directly, any royalties pursuant
to any Third Party Licenses on account of sales of Daclizumab by PDL or its
Affiliates or sublicensees, and (B) PDL shall thereafter have sole
responsibility for paying such royalties.

 

7.5                                 Royalties
on Termination.  If this Amended and Restated Worldwide Agreement is
terminated pursuant to Sections 13.2, 13.3 or 13.4, then Roche shall continue
to pay PDL, and PDL shall continue to pay Roche, as the case may be, any
royalties earned pursuant to this Article VII prior to the date of
termination.

 

7.6                                 Sublicenses.

 

(a)                                  Any
Roche Net Sales or Roche Net Sales of Excluded Products by a Roche sublicensee
shall be treated as Roche Net Sales or Roche Net Sales of Excluded Products of
Roche, as the case may be, for the purposes of payments under
Article VII.  If Roche, in accordance
with Section 2.5(a) or (b), shall grant any sublicenses under this Amended
and Restated Worldwide Agreement, then Roche shall obtain the written
commitment of such sublicensees to abide by all applicable terms and conditions
of this Amended and Restated

 

32

 

Worldwide Agreement and Roche shall remain responsible to PDL for the
performance by such sublicensee of any and all terms.  All such sublicenses to any Excluded Products shall provide that
such license terminates on any termination of the license granted pursuant to
Section 2.5(b).  Any sublicense
granted under the license in Section 2.5(a) shall expire as set forth in
that Section 2.5(a).

 

(b)                                 Any
PDL Net Sales by a PDL sublicensee shall be treated as PDL Net Sales of PDL for
the purposes of payments under Article VII.  If PDL, in accordance with Section 2.1, shall grant any
sublicenses under this Amended and Restated Worldwide Agreement, then PDL shall
obtain the written commitment of such sublicensees to abide by all applicable
terms and conditions of this Amended and Restated Worldwide Agreement and PDL
shall remain responsible to Roche for the performance by such sublicensee of
any and all terms.

 

VIII.  PAYMENTS,
REPORTS, AND ACCOUNTING

 

8.1                                 Roche
Quarterly Royalty Payments and Reports.

 

(a)                                  Promptly after the Effective Date, the parties shall work
in good faith to establish procedures for (a) compiling a final accounting,
pursuant to the 1999 Agreements, for all sales of Daclizumab made during 2003
prior to the Effective Date and (b) Roche to make all royalty payments owed to
PDL, pursuant to the 1999 Agreements, with respect to such sales.

 

(b)                                 Beginning
with the report for the last calendar quarter of 2003 and for each calendar
quarter thereafter, Roche agrees to make payments and written reports to PDL
within [CONFIDENTIAL TREATMENT REQUESTED] after the end of each calendar
quarter covering all sales of the Roche Products  in the Roche Territory
by Roche, its Affiliates or sublicensees (except PDL, its Affiliates and
sublicensees) for which invoices were sent during such calendar quarter, each
such written report stating for the period in question:

 

(i)                                     for
Roche Products disposed of by sale, the quantity and description of Roche
Products and the calculation of Roche Net Sales or Roche Net Sales of Excluded
Products,

 

(ii)                                  for
Roche Products disposed of other than by sale, the quantity, description, and
nature of the disposition, and

 

(iii)                               the
calculation of the amount due to PDL for such quarter pursuant to
Article VII.

 

(c)                                  The
information contained in each report under Section 8.1(b) shall be
considered confidential and PDL agrees not to disclose such information to any
Third Party, other than its Affiliates and sublicensees or except as may be
required by law, rule or regulation.  Concurrent with the making of each
quarterly report, Roche shall include payment due PDL hereunder for the
calendar quarter covered by such report.

 

(d)                                 It
is understood that only one royalty payment under Article VII shall be
payable on a given unit of Roche Product disposed of under this Amended and
Restated

 

33

 

Worldwide Agreement.  In the case of transfers or sales of any
Roche Product between Roche and an Affiliate or sublicensee of Roche, only one
royalty payment under Article VII shall be due, and such royalty shall be
payable with respect to, the sale of such Roche Product to (i) an independent
Third Party not an Affiliate of the seller or (ii) if the end user is an
Affiliate of the seller, then such end user.

 

8.2                                 PDL
Quarterly Royalty Payments and Reports.

 

(a)                                  Until
the expiration of PDL’s royalty obligations under Section 7.2(c), PDL
agrees to make payments and written reports to Roche within [CONFIDENTIAL
TREATMENT REQUESTED] after the end of each calendar quarter covering all sales
of Daclizumab in the Roche Territory by PDL for which invoices were sent during
such calendar quarter, or, in the case of royalties from the PDL Net Sales of
PDL’s Affiliates or sublicensees (except Roche, its Affiliates and
sublicensees), within [CONFIDENTIAL TREATMENT REQUESTED] following the end of
the quarter in which PDL receives the royalty report from the Affiliate or
sublicensee.  Each report shall state for the period in question:

 

(i)                                     for
Daclizumab disposed of by sale, the gross sales by PDL of  Daclizumab and
PDL Adjusted Gross Sales and the calculation of PDL Net Sales,

 

(ii)                                  for
Daclizumab disposed of other than by sale, the quantity, description, and
nature of the disposition, and

 

(iii)                               the
calculation of the amount due to Roche for such quarter pursuant to
Article VII.

 

(b)                                 The
information contained in each report under Section 8.2(a) shall be
considered confidential and Roche agrees not to disclose such information to
any Third Party, other than its Affiliates and sublicensees or except as may be
required by law, rule or regulation.  Concurrent with the making of each
quarterly report, PDL shall include payment due Roche hereunder for the
calendar quarter covered by such report.

 

(c)                                  It
is understood that only one royalty payment under Article VII shall be
payable on a given unit of Licensed Product disposed of under this Amended and
Restated Worldwide Agreement.  In the case of transfers or sales of any
Licensed Product between PDL and an Affiliate or sublicensee of PDL, only one
royalty payment under Article VII shall be due, and such royalty shall be
payable with respect to the sale of such Licensed Product to (i) an independent
Third Party not an Affiliate of the seller or (ii) if the end user is an Affiliate
of the seller, then such end user.

 

8.3                                 Termination
Report.  Roche agrees to make a written report to PDL within
[CONFIDENTIAL TREATMENT REQUESTED] after the date on which Roche, or its
Affiliates or sublicensees last sell Daclizumab, stating in each such report
the same information called for in each quarterly report by Section 8.1(b)
for all Daclizumab made, sold or otherwise disposed of and which was not
previously reported to PDL.  Roche further agrees to make a written report
to PDL within [CONFIDENTIAL TREATMENT REQUESTED] after the date on

 

34

 

which Roche, or its Affiliates or sublicensees last sell all Excluded
Products, stating in each such report the same information called for in each
quarterly report by Section 8.1(b) for all Excluded Product made, sold or
otherwise disposed of and which was not previously reported to PDL.  PDL
agrees to make a written report to Roche within [CONFIDENTIAL TREATMENT
REQUESTED] after the date on which PDL, or its Affiliates or sublicensees last
sell Daclizumab, stating in such report the same information called for in each
quarterly report by Section 8.2(a) for all Daclizumab made, sold or
otherwise disposed of and which was not previously reported to Roche; provided,
however, that PDL need not file such report if such date of last sale of
Daclizumab occurs after the expiration of PDL’s royalty under
Section 7.2(c)).

 

8.4                                 Accounting. 
Each Party (the “Royalty Paying Party”)
agrees to keep full, clear and accurate records for a period of at least
[CONFIDENTIAL TREATMENT REQUESTED], setting forth the manufacturing, sales and
other disposition of Daclizumab, Roche Products (as the case may be), and
Combination Products sold or otherwise disposed of under the license herein
granted in sufficient detail to enable royalties and compensation payable to
the other Party (the “Royalty Receiving
Party”) hereunder to be determined.  Each Royalty Paying Party
further agrees to permit its books and records to be examined by an independent
accounting firm selected by the Royalty Receiving Party to verify reports
provided for in this Article VIII.  Unless the Royalty Receiving
Party obtains the prior written consent of the Royalty Paying Party, such
accounting firms must be selected from among the four largest U.S. accounting
firms.  Such audit shall not be performed more frequently that
[CONFIDENTIAL TREATMENT REQUESTED] per calendar year nor more frequently than
[CONFIDENTIAL TREATMENT REQUESTED] with respect to records covering any
specific period of time.  Such examination is to be made at the expense of
the Royalty Receiving Party, except in the event that the results of the audit
reveal a discrepancy in favor of the Royalty Paying Party of [CONFIDENTIAL
TREATMENT REQUESTED] or more over the period being audited, in which case
reasonable audit fees for such examination shall be paid by the Royalty Paying
Party.

 

8.5                                 Methods
of Payments.  All payments due to either PDL or Roche under this
Amended and Restated Worldwide Agreement shall be paid in United States dollars
by wire transfer to a bank in the United States designated in writing by the
party to which the payment is due.

 

8.6                                 Taxes. 
If provision is made in law or regulation of any country of the Roche Territory
or the Territory (as applicable) for withholding of taxes of any type, levies
or other charges with respect to the any amounts payable hereunder to a party,
the other party (“Withholding Party”)
shall promptly pay such tax, levy or charge for and on behalf of the party to
the proper governmental authority, and shall promptly furnish the party with
receipt of such payment.  The Withholding Party shall have the right to
deduct any such tax, levy or charge actually paid from payment due the party or
be promptly reimbursed by the party if no further payments are due the
party.  Each Withholding Party agrees to assist the other party in
claiming exemption from such deductions or withholdings under double taxation
or similar agreement or treaty from time to time in force and in minimizing the
amount required to be so withheld or deducted.

 

35

 

IX.  CELL
LINES

 

9.1                                 Cell
Lines.

 

(a)                                  The
parties acknowledge that PDL has delivered all cell lines to Roche as  required under the 1989 Agreements. 
Roche agrees to deliver back to PDL viable samples of such cell lines as may be
requested by PDL.

 

(b)                                 Ownership
of any cell lines developed under Article VI of the 1989 Agreements or
delivered to Roche under Milestone #1 of Section 3.1 of the 1989
Agreements, together with their progeny and derivatives, shall remain vested at
all times in PDL.

 

(c)                                  Roche
may use the cell lines delivered to it under the 1989 Agreements, or their
progeny or derivatives or the plasmids contained therein (the “Cell Line Derivatives”) solely to perform
the Roche Commercialization Activities.  Furthermore, the Cell Line
Derivatives may be used by Roche solely in connection with the genes encoding
antibodies developed or provided by PDL.

 

(d)                                 On the earliest to occur of [CONFIDENTIAL
TREATMENT REQUESTED] in the Roche
Territory as permitted under this Amended and Restated Worldwide Agreement,
Roche shall, on request by PDL, promptly return to PDL all cell lines provided
by PDL under the 1989 Agreements and all Cell Line Derivatives.

 

(e)                                  PDL
MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS
OR IMPLIED, WITH RESPECT TO ANY CELL LINES DELIVERED UNDER THE 1989 AGREEMENTS
OR CELL LINE DERIVATIVES USED HEREUNDER, INCLUDING WITHOUT LIMITATION, ANY EXPRESS
OR IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NONINFRINGEMENT.  FOR CLARITY, PDL MAKES
NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND THAT THE USE OF THE
CELL LINES DELIVERED TO ROCHE OR THE CELL LINE DERIVATIVES WILL NOT INFRINGE
ANY PATENT OR OTHER RIGHTS OF ANY THIRD PARTY.

 

X.  OWNERSHIP
OF TECHNOLOGY AND INTELLECTUAL PROPERTY

 

10.1                           PDL
Technology.  Ownership of the PDL Know-How and PDL Patents shall
remain vested at all times in PDL.  PDL expressly reserves under this
Amended and Restated Worldwide Agreement (i) all rights to use the PDL
Know-How, PDL’s rights under any Joint Roche-PDL Patents, and PDL Patents to
make, have made, use, import, offer to sell and sell anywhere in the world all
products within the Field that are other than Daclizumab for use in the
Transplant Indications (unless and until the Roche Put Right or the Transplant
Reversion is exercised) and other than any Excluded Product or any other
product in the Excluded Field; and (ii) for all uses outside of the
Field.  Following exercise of the Transplant Reversion or the Roche Put
Right, PDL shall have the right to use such technology for any and all purposes
other than products in the Excluded Field, which right shall be exclusive to Roche
except as provided in Section 10.2.

 

36

 

10.2                           Joint
Inventions and Joint Roche-PDL Patents.  Subject to Article XI,
ownership of Joint Inventions and Joint Roche-PDL Patents shall be vested
jointly in PDL and Roche. Both parties shall at all times have the co-exclusive
right within the Territory to practice, or to make, have made, use, import,
offer for sale or sell any Joint Invention outside the Field under any Joint
Roche-PDL Patent, and neither party shall be obligated to account to the
other.  On the earlier of (i) the Reversion Effective Date,
or (ii) the Put Right Effective Date, the following shall occur: (a) PDL shall
have the exclusive right to practice, and to make, have made, use, import,
offer for sale or sell any Joint Invention in the Field (but not in the
Excluded Field) under any Joint Roche-PDL Patent, and (b) Roche shall have the
exclusive right to practice, and to make, have made, use, import, offer for
sale or sell any Joint Invention solely in the Excluded Field, in each case,
without restriction and without any obligation to account to the other
party.  As used herein, a right to practice any Joint Roche-PDL Patent for
a particular purpose without any obligation to account shall include the right
to grant licenses for such purpose without the consent of the other
party.  To the extent either party needs the consent of the other party to
exploit its co-exclusive or exclusive rights with respect to Joint Roche-PDL
Patents, including the right to sublicense or enforce such Joint Roche-PDL
Patents, the other party shall cooperate with the party making such a request
and promptly supply all needed consents, signatures and the like.  In the
event the Roche Put Right and the Transplant Reversion both expire unexercised,
each party shall have the co-exclusive right to practice, and to make, have
made, use, import, offer for sale or sell any Joint Invention in the Field
under any Joint Roche-PDL Patent, subject to the license grants set forth in
Article II.

 

10.3                           Roche
Technology.  PDL hereby acknowledges that, except as expressly
provided herein, this Amended and Restated Worldwide Agreement does not grant
PDL any ownership rights in the Roche Inventions, Roche Patents and Roche
Know-How.  Roche hereby confirms the rights of PDL to certain license
grants to Roche Patents and Roche Know-How as provided in Section 2.1 of
this Amended and Restated Worldwide Agreement.

 

10.4                           Trademarks.

 

(a)                                  Until
the Reversion Effective Date or Put Right Effective Date, Roche shall
exclusively own all Trademarks, and the exclusive right to use them in the
Roche Territory in connection with the marketing and promotion of
Daclizumab.  Roche shall have no right to use the Trademarks, or any other
marks confusingly similar to the Trademarks, in connection with the promotion,
sale or marketing of any other product, including any Excluded Product.

 

(b)                                 PDL
shall have the right to select any and all AI Trademarks; provided such AI
Trademarks are not confusingly similar to the Trademarks (unless otherwise
agreed), and PDL shall retain ownership of the AI Trademarks and the exclusive
right to use them in connection with the promotion, marketing and sale of
Daclizumab for AI or any Other Indications.

 

(c)                                  Each
party shall be responsible for selection, prosecution, maintenance and
enforcement of its own trademarks, and shall indemnify and defend the other
from any Third Party claims arising from the indemnifying party’s use of such
marks.  At the request [CONFIDENTIAL
TREATMENT REQUESTED] of PDL, Roche shall file trademark registration
applications for, and procure and maintain registration of, the trademark
“Zenapax®” in any

 

37

 

country in the Territory in which Roche, as of the Effective Date, has
not made such application or procured such registration.  All such applications and registrations
shall be deemed to be Trademarks.

 

(d)                                 Roche
shall assign the Trademarks to PDL upon exercise of either the Transplant
Reversion or the Roche Put Right, as provided for in Section 5.4(f).

 

XI.  PATENT
PROSECUTION

 

11.1                           Sole
PDL Patents and Roche Owned Patents.

 

(a)                                  PDL
agrees to prosecute and reasonably maintain all of the patents and applications
included within the Sole PDL Patents, to the extent it has the rights to do so,
and Roche agrees to prosecute and reasonably maintain the Roche Owned Patents,
to the extent it has the rights to do so from any co-owner of such Roche Owned
Patents.  The parties agree and acknowledge that the Roche Owned Patents listed
on Schedule 2.8(a) are co-owned by Roche and a Third Party, and are
governed by the [CONFIDENTIAL TREATMENT REQUESTED] (the “Joint Patent
Agreement”) which provides, among other things, that Roche undertake certain
obligations in order to continue to maintain its [CONFIDENTIAL TREATMENT
REQUESTED] in the Roche Owned Patent.  Promptly after the Effective Date,
to the extent that Roche is permitted to do so, Roche shall provide to PDL a
copy of the Joint Patent Agreement, and the Roche Owned Patent for PDL’s review
such that PDL may determine whether and to what extent, it intends that such
Joint Patent Agreement and Roche Owned Patent be assigned to PDL in the event
of the Transplant Reversion or the exercise of the Roche Put Right.

 

(b)                                 The
party responsible for such patent (“Responsible
Party”) shall bear all costs and expenses for such prosecution and
maintenance. On the reasonable request of the Responsible Party, the other
party shall cooperate, in all reasonable ways, in connection with the prosecution
of all patent applications included within the Sole PDL Patents or Roche Owned
Patents, as the case may be.  Should the Responsible Party decide that it
is no longer interested in maintaining or prosecuting a Sole PDL Patent or
Roche Owned Patent, as the case may be, it shall promptly advise the other
party thereof and, at the request of such other party, PDL and Roche shall
negotiate in good faith to determine an appropriate course of action in the
interests of both parties.  If any Sole PDL Patents are assigned to Roche,
Roche will thereafter prosecute and reasonably maintain such Sole PDL Patents
at Roche’s own cost to the extent that Roche desires to do so, provided that to
the extent such Sole PDL Patent contains claims outside the Field (or, following
either the Reversion Effective Date or the Put Right Effective Date, outside
the Excluded Field only), PDL and its Affiliates shall have a worldwide
immunity from suit thereunder.  If Roche’s interest in any Roche Owned
Patents is assigned to PDL, PDL will thereafter prosecute and reasonably
maintain such Roche Owned Patent at PDL’s own cost to the extent that PDL
desires to do so, provided that to the extent such Roche Owned Patent contains
claims outside the Field (or following either the Reversion Effective Date or
the Put Right Effective Date, outside the Excluded Field only), Roche and its
Affiliates shall have a worldwide immunity from suit thereunder.   In the event Roche’s interest in the
Roche Owned Patents is assigned to PDL pursuant to Section 5.4(e), Roche
shall have no further rights with respect thereto under this Section 11.1
except those set forth in the penultimate sentence of this Section 11.1.

 

38

 

11.2                           Joint
Inventions.

 

(a)                                  PDL
will have the first right of election to file priority patent applications for
Joint Inventions in any country in the world.  If PDL declines to file
such applications then Roche may do so.

 

(b)                                 The
party not performing the priority patent filings for Joint Inventions pursuant
to this Section 11.2 undertakes without cost to the filing party to obtain
all necessary assignment documents for the filing party, to render all
signatures that shall be necessary for such patent filings and to assist the
filing party in all other reasonable ways that are necessary for the issuance
of the patents involved as well as for the maintenance and prosecution of such
patents.  The party not performing the patent filings shall on request be
authorized by the other party to have access to the files concerning such
patents in any patent offices in the world.

 

(c)                                  The
party performing the priority patent filings for Joint Inventions pursuant to
this Section 11.2 undertakes to perform, at its cost and expense, the
corresponding convention filings from case to case, after having discussed the
countries for foreign filings with the other party.

 

(d)                                 Should
the Responsible Party decide that it is no longer interested in maintaining or
prosecuting a Joint Roche-PDL Patent, it shall promptly advise the other party
thereof.  On the written request of such other party, such Joint Roche-PDL
Patent shall be assigned to the other party at no cost to the assignee. 
If any such patents or patent applications are assigned to Roche, they shall
then be deemed to be a Sole Roche Patent and, to the extent such Joint
Roche-PDL Patent contains claims outside the Field (or, following the Reversion
Effective Date or the Put Right Effective Date, outside the Excluded Field),
PDL and its Affiliates shall have a worldwide immunity from suit
thereunder.  If any such patents or patent applications are assigned to
PDL, they shall then be deemed to be a Sole PDL Patent and, to the extent such
Joint Roche-PDL Patents contain claims outside the Field, Roche and its Affiliates
shall have a worldwide immunity from suit thereunder.

 

11.3                           General
Procedures.  Until the Reversion Effective Date, the Put Right
Effective Date or the expiration of the Exercise Period without PDL exercising
the Transplant Reversion, the parties shall observe the following procedures
for patent applications for inventions arising from this Amended and Restated
Worldwide Agreement:

 

(a)                                  As
soon as one of the parties concludes that it wishes to file a patent
application covering an invention in the Field, it shall immediately inform the
other party thereof and consult about the filing procedures concerning such
patent application.  For this purpose, such party will provide the other
party with the determination of inventors and scope of claims as early as
possible.  Should a party be faced with possible loss of rights, such
communications may take place promptly after filing a convention application.

 

(b)                                 The
party performing any priority patent filings as described above shall be
obliged to prosecute and reasonably maintain such applications and any patents
resulting therefrom and will have to bear the costs associated therewith. 
On request of the party performing

 

39

 

the filing, the other party will cooperate, in all reasonable ways, in
connection with the prosecution of all such patent applications relating to
inventions.  The party performing the filing shall advise the other party
of any substantial action or development in the prosecution of its patent
applications and patents, in particular of the question of scope, the issuance
of, or the rejection of, an interference involving or an opposition to any
respective patent application or patent.

 

(c)                                  Inventions
and other intellectual property made by either party outside the Field shall be
excluded from the provisions of this Amended and Restated Worldwide Agreement
and shall belong solely to the party having made the invention or other
intellectual property.

 

11.4                           Reimbursement
for Costs of Patent Applications for Transplant Indications.

 

(a)                                  No Reimbursement.  As of the Effective
Date, PDL shall be responsible for all ex parte out-of-pocket expenses incurred
by PDL after the Effective Date in connection with the prosecution and
maintenance in the Territory of patent applications and patents included within
the PDL Patents or Joint Roche-PDL Patents for which PDL makes filings with
respect to Transplant Indications pursuant to Article XI of this Amended
and Restated Worldwide Agreement.

 

(b)                                 PDL Control.  After either the Reversion Effective Date or
the Put Right Effective Date, PDL shall have full control over the strategy and
decisions with respect to the filing of any patent applications and patents
related to Transplant Indications in the Territory.  Roche agrees to cooperate with and reasonably assist PDL in the
preparation of any patent applications and the maintenance of any patents.  Prior to the Reversion Effective Date or the
Put Right Effective Date, PDL shall consult Roche with respect to its patent
prosecution strategy and decisions, as follows:  Prior to the filing of a patent application in the Territory for
Transplant Indications, PDL shall inform Roche concerning such proposed filing
and shall consult with Roche concerning the proposed filing procedures,
including specifically the determination of scope of any such patent and
countries in which such application is to be filed.  PDL shall regularly advise Roche of any substantial action or
development in the prosecution of its patent applications and patents in the
Territory related to the Transplant Indications, in particular of the question
of scope of, the issuance of, the rejection of, or an opposition to any
respective patent application or patent.

 

(c)                                  Accrued Transplant Foreign Filing Expenses. 
Transplant Foreign Filing Expenses accrued prior to [CONFIDENTIAL TREATMENT
REQUESTED] shall remain creditable against royalties payable by Roche to PDL in
the Territory (excluding the U.S., including its territories and possessions),
as provided in Section 7.3 of this Amended and Restated Worldwide
Agreement.

 

11.5                           Reimbursement
for Costs of Patent Applications for Autoimmune Indications.

 

(a)                                  No Reimbursement.  PDL shall be
responsible for all ex parte out-of-pocket expenses incurred by PDL after the
Effective Date in connection with the prosecution and maintenance in the
Territory of patent applications and patents included within the PDL Patents or

 

40

 

Joint Roche-PDL Patents for which PDL makes filings with respect to
Autoimmune Indications pursuant to Article XI of this Amended and Restated
Worldwide Agreement.

 

(b)                                 PDL Control. 
PDL shall have full control over the strategy and decisions with respect to the
filing of any patent applications and patents related to Autoimmune Indications
in the Territory.  Roche agrees to cooperate with and reasonably assist
PDL in the preparation of any patent applications and the maintenance of any
patents.

 

11.6                           No
Reimbursement for Roche’s Costs of Patent Applications.  Roche shall be responsible for all ex parte
out-of-pocket expenses incurred by Roche after the Effective Date in connection
with the prosecution and maintenance in the Territory of patent applications
and patents included within the Roche Owned Patents or Joint Roche-PDL Patents
for which Roche makes filings pursuant to this Article XI of this Amended
and Restated Worldwide Agreement.

 

XII.    ENFORCEMENT AND DEFENSE OF PATENTS

 

12.1                           Sole
Patents.

 

(a)                                  Except
for enforcement or revocation actions involving Sole PDL Patents or Roche Owned
Patents outside the Field, in the event of any action against a Third Party for
infringement of any claim in any issued patent within the Sole PDL Patents or
Roche Owned Patents, as the case may be, or the institution by a Third Party of
any proceedings for the revocation of any such claim, each party will notify
the other promptly and, following such notification, the parties shall
confer.  [CONFIDENTIAL TREATMENT REQUESTED] shall have the right, but not
the obligation, to prosecute such actions or to defend such proceedings
involving the Sole PDL Patents at its own expense, in its own name and entirely
under its own direction and control. 
[CONFIDENTIAL TREATMENT REQUESTED] shall have the right, but not the
obligation, to prosecute such actions or to defend such proceedings involving
the Roche Owned Patents at its own expense, in its own name and entirely under
its own direction and control.

 

(b)                                 If
a party with the first right hereunder elects not to prosecute any action for
infringement or to defend any proceeding for revocation of any claims in any
issued patent within the Sole PDL Patents (other than those Sole PDL Patents
for which PDL [CONFIDENTIAL TREATMENT REQUESTED]) or Roche Owned Patents (other
than those Roche Owned Patents [CONFIDENTIAL TREATMENT REQUESTED]), as the case
may be, within [CONFIDENTIAL TREATMENT REQUESTED] of being requested by the
other party to do so, the other party may prosecute such action or defend such
proceeding at its own expense, in its own name and entirely under its own
direction and control.  This
Section 12.1(b) shall expire on the Reversion Effective Date or the Put
Right Effective Date.

 

(c)                                  In
any event, the party bringing an action (“Acting
Party”) pursuant to this Section 12.1 shall solicit, and
seriously consider in good faith the non-acting party’s input with respect to
all material aspects of such action, including without limitation, the
development of the litigation strategy and the execution thereof.  In
furtherance and not in limitation of the foregoing, the Acting Party shall keep
the other party promptly and fully informed of the status of any such

 

41

 

action, and the non-acting party shall have the right to review and
comment on the Acting Party’s activities related thereto. The obligations of
this Section 12.1(c) shall not apply to PDL as the Acting Party after
either the Reversion Effective Date or the Put Right Effective Date.

 

(d)                                 Each
party will reasonably assist the Acting Party in any such action or proceeding
being prosecuted or defended by the Acting Party, if so requested by the Acting
Party or required by law.  Without limiting the generality of the
foregoing, the non-acting party agrees to join such action or proceeding if
required by law to maintain such action or proceeding.  The Acting Party
will pay or reimburse the assisting party for all costs, expenses and
liabilities that the assisting party may incur or suffer in affording
assistance to such actions or proceedings.  No settlement of any such
action or defense that restricts the scope or affects the enforceability of PDL
Know-How or Sole PDL Patents may be entered into by either PDL (if it would
affect Roche’s rights under this Agreement) or Roche without the prior consent
of the other party hereto, [CONFIDENTIAL TREATMENT REQUESTED].  No
settlement of any such action or defense that restricts the scope or affects
the enforceability of Roche Know-How or Roche Owned Patents may be entered into
by either PDL or Roche without the prior consent of the other party hereto (if
it would affect the other party’s rights under this Agreement, [CONFIDENTIAL
TREATMENT REQUESTED].  The consent obligations of this
Section 12.1(d) shall not apply to PDL as the Acting Party after either
the Reversion Effective Date or the Put Right Effective Date.

 

(e)                                  If
either party elects to prosecute an action for infringement or to defend any
proceedings for revocation of any claims pursuant to this Section 12.1 and
subsequently ceases to continue or withdraws from such action or defense, it
shall forthwith so notify the other party in writing and the other party may
substitute itself for the withdrawing party and the parties’ respective rights
and obligations under this Section 12.1 shall be reversed. The obligations
of this Section 12.1(e) shall not apply to PDL as the Acting Party after
either the Reversion Effective Date or the Put Right Effective Date.

 

12.2                           Joint
Roche-PDL Patents.  In the event of any action against a Third Party
for infringement of any claim in any issued patent within the Joint Roche-PDL
Patents, or the institution by a Third Party of any proceedings for the
revocation of any such claim, each party will notify the other promptly and,
following such notification, the parties shall confer to determine whether
either or both parties shall control the prosecution or defense of such action
or proceeding and who shall bear the costs thereof.  If both parties wish
to control the prosecution or defense of such action or proceeding and the
parties are unable to reach agreement within [CONFIDENTIAL TREATMENT REQUESTED]
of the notification referred to above, then (a) with respect to alleged
infringement in the [CONFIDENTIAL TREATMENT REQUESTED], [CONFIDENTIAL TREATMENT
REQUESTED] shall have the exclusive right to bring such action or defend such
proceeding at its own expense, in its own name and entirely under its own
direction, (b) with respect to alleged infringement in the [CONFIDENTIAL
TREATMENT REQUESTED], [CONFIDENTIAL TREATMENT REQUESTED] shall have the
exclusive right to bring such action or defend such proceeding at its own
expense, in its own name and entirely under its own direction; and (c) with
respect to alleged infringement [CONFIDENTIAL TREATMENT REQUESTED],
[CONFIDENTIAL TREATMENT REQUESTED] shall have the right to bring such action or
defend such proceeding at its own expense, in its own name and entirely under
its own direction and control; provided, however, that if both parties elect to

 

42

 

prosecute or defend, each party shall bear its own expenses but both
parties shall have equal control over such prosecution or defense.  No
settlement of any action or defense that restricts the scope or affects the enforceability
of Joint Roche-PDL Patents may be entered into by either PDL or Roche without
the prior consent of the other party hereto, which consent shall not be
unreasonably withheld.  In any event, the Acting Party pursuant to this
Section 12.2 shall solicit, and seriously consider in good faith the other
party’s input with respect to all material aspects of such action, including
without limitation, the development of the litigation strategy and the
execution thereof.  In furtherance and not in limitation of the foregoing,
the Acting Party shall keep the other party promptly and fully informed of the
status of any such action, and the other party shall have the right to review
and comment on the Acting Party’s activities related thereto.

 

12.3                           Distribution
of Proceeds.  In the event either party exercises the rights conferred
in Section 12.1 or 12.2 hereof, and recovers any damages or other sums in
such action, suit or proceeding or in settlement thereof, such damages or other
sums recovered shall first be applied to reimburse the parties for all costs
and expenses incurred in connection therewith, including reasonable attorneys’
fees necessarily involved in the prosecution and/or defense of any suit or
proceeding and, if after such reimbursement any funds shall remain from such
damages or other sums recovered, said remaining recovery shall belong to
[CONFIDENTIAL TREATMENT REQUESTED]; provided, however, that any remaining
recovery by the party exercising its rights for a Joint Roche-PDL Patent with
respect to alleged infringement outside the Field shall be shared, with
[CONFIDENTIAL TREATMENT REQUESTED] of such remaining recovery to Roche and
[CONFIDENTIAL TREATMENT REQUESTED] of such remaining recovery to PDL.

 

12.4                           Defense
of Infringement Actions.

 

(a)                                  Roche
shall defend at its own cost any infringement suit that may be brought against
PDL or Roche on account of the development, manufacture, production, use,
importation, offer for sale, or sale of Daclizumab or Excluded Products by
Roche, and shall indemnify and hold PDL
harmless against any such patent or other infringement suits, and any claims,
losses, damages, liabilities, expenses, including reasonable attorneys’ fees
and cost, that may be incurred by PDL therein or in settlement thereof. 
Any and all settlements that restrict the scope or enforceability of PDL
Know-How or PDL Patents must be approved by PDL, in its sole and absolute
discretion, before execution by Roche.  Any and all settlements that
restrict the scope or enforceability of Joint Roche-PDL Patents or Sole Roche
Patents (other than those Sole Roche Patents co-owned by a Third Party) must be
approved by PDL before execution by Roche, such approval not to be unreasonably
withheld.  PDL shall not be required to
approve any settlement that does not include as a condition thereof the
granting to PDL of a full and unconditional release of claims.

 

(b)                                 PDL
shall defend at its own cost any infringement suit that may be brought against
Roche or PDL on account of the development, manufacture, production, use,
importation, offer for sale, or sale of Licensed Products  by PDL, and shall indemnify and hold Roche harmless against any
such patent or other infringement suits, and any claims, losses, damages,
liabilities, expenses, including reasonable attorneys’ fees and cost, that may
be incurred by Roche therein or in settlement thereof.  Any and all
settlements that restrict the scope or enforceability of Roche

 

43

 

Know-How or Roche Patents must be approved by Roche, in its sole and
absolute discretion, before execution by PDL.  Any and all settlements
that restrict the scope or enforceability of Joint Roche-PDL Patents must be
approved by Roche before execution by PDL, such approval not to be unreasonably
withheld.  Roche shall not be required to approve any settlement that does
not include as a condition thereof the granting to Roche of a full and
unconditional release of claims.  [CONFIDENTIAL TREATMENT REQUESTED]

 

12.5                           Right
to Counsel.  Each party to this Amended and Restated Worldwide
Agreement shall always have the right to be represented by counsel of its own
selection and its own expense in any suit or other action instituted by the
other for infringement, under the terms of this Amended and Restated Worldwide
Agreement.

 

XIII.  TERM AND TERMINATION

 

13.1                           Term. 
Unless earlier terminated pursuant to the terms of this Article XIII, this
Amended and Restated Worldwide Agreement shall go into effect on the Effective
Date and shall remain in effect until the latest of (i) expiration of the last
to expire PDL Patents; (ii) expiration of the last to expire Roche Patents;
(iii) expiration of PDL’s payment obligations hereunder; or (iv) expiration of
Roche’s payment obligations hereunder. 
On expiration of this Amended and Restated Worldwide Agreement, any
exclusive licenses then in effect under any Roche Know-How or PDL Know-How will
convert to fully paid, non-exclusive licenses.

 

13.2                           Termination
by Mutual Agreement.  This Amended and Restated Worldwide Agreement
may be terminated by the written agreement of both parties.

 

13.3                           Termination
by PDL on Roche Default.  If, during the period commencing on the
Effective Date and terminating on the earlier of Reversion Effective Date or
the Put Right Effective Date, Roche defaults in the performance of, or fails to
be in compliance with, any material agreement, condition or covenant of this
Amended and Restated Worldwide Agreement with respect to either (a) the rights
PDL grants to Roche under Article II of this Amended and Restated
Worldwide Agreement, including royalties and consideration due from Roche to
PDL under Article VII, or (b) the Transplant Reversion granted under
Article V, then PDL may terminate any or all of the rights and licenses
granted to Roche under Section 2.5 of this Amended and Restated Worldwide
Agreement at its option, at which time Roche’s right to promote, distribute and
sell Daclizumab in the Roche Territory shall terminate as though PDL had
exercised its Transplant Reversion, with all the same effect as though that
were the case, but without the need for any payment of the Reversion Exercise
Fee.  PDL shall have such right to so terminate Roche’s rights under this
Section 13.3 only if such default or noncompliance shall not have been
remedied, or steps initiated to remedy the same to PDL’s reasonable
satisfaction, within [CONFIDENTIAL TREATMENT REQUESTED] after receipt by Roche
of a written notice thereof from PDL.  It is expressly understood that
PDL’s rights to terminate under this Section 13.3 are in effect only until
the earlier of the Reversion Effective Date or the Put Right Effective Date,
and that such rights expire with the expiration, without exercise, of the Transplant Reversion
and the Roche Put Right.

 

44

 

13.4                           Voluntary
Termination Of License by Roche.

 

(a)                                  Roche
shall have the right, in the event the Transplant Reversion and the Roche Put
Right expire unexercised, to voluntarily terminate its licenses under
Section 2.5(a), on six (6) months written notice.  On notice of such
voluntary termination, Roche shall notify PDL of the amount of Daclizumab that
Roche, its Affiliates, sublicensees and distributors then have on hand (“Inventory”).  Roche and its
Affiliates, sublicensees and distributors shall thereupon be permitted to sell
the Inventory, provided that PDL shall have the first option for a period not
to exceed [CONFIDENTIAL TREATMENT REQUESTED] to purchase all or part of the
Inventory at [CONFIDENTIAL TREATMENT REQUESTED].  If PDL fails to exercise
its option to purchase all of the Inventory or for that part of the Inventory
with respect to which the option is not exercised, then Roche will be free to
sell such Inventory to Third Parties for a period not to exceed [CONFIDENTIAL TREATMENT
REQUESTED] from the termination of PDL’s option.  In any event, Roche
shall pay the royalties or other consideration due, if any, on the sale of such
Inventory in the amounts and manner provided for in Articles VII and VIII.

 

(b)                                 Roche
shall have the right at any time during the term of this Amended and Restated
Worldwide Agreement, to voluntarily terminate its license granted under
Section 2.5(b), on [CONFIDENTIAL TREATMENT REQUESTED] written notice to
PDL.  In the event of such unilateral
termination, Roche agrees to negotiate with PDL, on PDL’s request, for the
transfer and/or license of any Roche owned or licensed intellectual property or
technology relevant to the development and/or commercialization of the Excluded
Products, in return for [CONFIDENTIAL TREATMENT REQUESTED].

 

13.5                           Return
of Materials.  On termination of this Amended and Restated Worldwide
Agreement in whole by both parties pursuant to Section 13.2, by PDL
pursuant to Section 13.3, or by Roche pursuant to Section 13.4, Roche
forthwith shall (a) return to PDL all cell lines and their progeny, antibodies
and other biological materials provided by PDL under the 1989 Agreements; and
(b) subject to Section 13.4, at PDL’s cost, shall deliver to PDL then
available supplies of Daclizumab.

 

13.6                           Rights
and Obligations on Termination or Expiration.  Unless expressly
provided to the contrary, the provisions of Sections 2.1(g), 2.3, 2.7, 3.4,
5.7, 7.4, 7.5, 9.1(c), 9.1(e), 13.4, 13.5, 13.6, 13.7, 17.4, 17.5, 17.6, 17.8,
and 17.11, and Articles VIII, X, XI, XII, XIV and XV shall survive the
termination of this Amended and Restated Worldwide Agreement and shall expire
on their own terms, or if no expiration is expressly indicated therein, shall
continue indefinitely.

 

XIV.  CONFIDENTIALITY, DISCLOSURE AND PUBLICATIONS

 

14.1                           Confidentiality.

 

(a)                                  Generally. 
During the term of this Amended and Restated Worldwide Agreement and for a
period of [CONFIDENTIAL TREATMENT REQUESTED] following expiration or
termination of this Amended and Restated Worldwide Agreement, each party shall
maintain in confidence all information and materials including, but not limited
to, cell lines, their progeny, and antibodies, disclosed by the other party
hereto that such party knows or has reason to know are or contain trade secrets
or other proprietary information of the other, including, without

 

45

 

limitation, information relating to the PDL Know-How, PDL Patents,
Roche Know-How, Roche Patents, Joint Roche-PDL Patents, Joint Inventions and
inventions of the other party, and the business plans of the other party,
including, without limitation, information provided by either party to the
other party hereto prior to the Effective Date, and shall not use such trade
secrets or proprietary information for any purpose, including, without
limitation, for the purpose of developing products in the Field except as
permitted by this Amended and Restated Worldwide Agreement or disclose the same
to anyone other than those of its Affiliates, sublicensees, prospective
sublicensees, employees, consultants, agents or subcontractors as are necessary
in connection with such party’s activities as contemplated in this Amended and
Restated Worldwide Agreement.  Each party shall be responsible for ensuring
compliance with these obligations by such party’s Affiliates, sublicensees,
prospective sublicensees, employees, consultants, agents and
subcontractors.  Each party shall use a similar effort to that which it
uses to protect its own [CONFIDENTIAL TREATMENT REQUESTED] trade secrets or
proprietary information to ensure that its Affiliates, sublicensees, employees,
consultants, agents and subcontractors do not disclose or make any unauthorized
use of trade secrets or proprietary information of the other party
hereto.  Each party shall notify the other promptly on discovery of any
unauthorized use or disclosure of the other’s trade secrets or proprietary
information.

 

(b)                                 Additional
Roche Obligations.  During the period commencing on the Effective Date
and terminating on the earlier of Reversion Effective Date or the Put Right
Effective Date, Roche agrees to maintain in confidence the Roche Know-How
related to Daclizumab in a manner consistent with Roche’s maintenance of
confidentiality with respect to know-how and trade secrets related to its other
products and technologies and consistent with Roche’s past practices with
respect to such Roche Know-How.

 

14.2                           Exceptions. 
The obligation of confidentiality contained in this Amended and Restated
Worldwide Agreement shall not apply to the extent that (a) either party
(the “Recipient”) is required to
disclose information by order or regulation of a governmental agency or a court
of competent jurisdiction or (b) the Recipient can demonstrate that
(i) the disclosed information was at the time of such disclosure by the
Recipient already in the public domain other than as a result of actions of the
Recipient, its Affiliates, employees, licensees, agents or subcontractors, in
violation hereof; (ii) the disclosed information was rightfully known by
the Recipient or its Affiliates (as shown by its written records) prior to the
date of disclosure to the Recipient in connection with the negotiation,
execution or performance of this Amended and Restated Worldwide Agreement; or
(iii) the disclosed information was received by the Recipient or its
Affiliates on an unrestricted basis from a source unrelated to any party to
this Amended and Restated Worldwide Agreement and not under a duty of
confidentiality to the other party, or (c) the Recipient can demonstrate
that disclosure to a regulatory authority is required by its product license
approval process.

 

14.3                           Publications.

 

(a)                                  Scientific
Publications.  Prior to public disclosure or submission for
publication of a manuscript describing the results of any scientific activity
or collaboration between PDL and Roche in the Field, the party disclosing or
submitting such a manuscript (“Disclosing
Party”) shall send the other party (“Responding Party”) by expedited delivery a

 

46

 

copy of the manuscript to be submitted and shall allow the Responding
Party a reasonable time period (not to exceed forty-five (45) days  from the date of confirmed receipt) in
which to determine whether the manuscript contains subject matter of which
patent protection should be sought (prior to publication of such manuscript)
for the purpose of protecting an invention, or whether the manuscript contains
confidential information belonging to the Responding Party.  After the
expiration of forty-five (45) days from the date of confirmed receipt of such
manuscript, the Disclosing Party shall be free to submit such manuscript for
publication and publish or otherwise disclose to the public such research
results.  Should the Responding Party believe the subject matter of the
manuscript contains confidential information or a patentable invention of
substantial commercial value to the Responding Party, then prior to the
expiration of forty-five (45) days from the date of confirmed receipt of such
manuscript by the Responding Party, the Responding Party shall notify the
Disclosing Party in writing of its determination that such manuscript contains
such information or subject matter for which patent protection should be sought. 
On receipt of such written notice from the Responding Party, the Disclosing
Party shall delay public disclosure of such information or submission of the
manuscript for an additional period of sixty (60) days to permit preparation
and filing of a patent application on the disclosed subject matter.  The
Disclosing Party shall thereafter be free to publish or disclose such
information, except that the Disclosing Party may not disclose any confidential
information of the Responding Party in violation of Sections 14.1 and 14.2
hereof.  Determination of authorship for any paper or patent shall be in
accordance with accepted scientific practice.  Should any questions on
authorship arise, this will be determined by good faith consultation between
the respective heads of research for each of the parties.

 

(b)                                 Clinical
Studies.  At any time prior to PDL’s exercise of the Transplant
Reversion or Roche’s exercise of the Roche Put Right, if a party intends to
publicly disclose or submit for publication a manuscript describing the results
of any permitted scientific, preclinical or clinical study involving Daclizumab
conducted by or on behalf of such party (the “Publishing
Party”) or its Affiliates, the Publishing Party shall send the other
party by expedited delivery a copy of the manuscript to be submitted and shall
allow the other party a reasonable time period (such period to be stated in the
transmittal and not to exceed forty-five (45) days from the date of confirmed
receipt by the other party) to review the manuscript, including for the purpose
of determining whether the manuscript contains information which is reasonably
likely to have a material adverse impact on Daclizumab for either Transplant
Indications or Autoimmune Indications, as the case may be, in the Territory or
confidential information belonging to the other party.  After the
expiration of such stated reasonable period from the date of confirmed receipt
by the other party of such manuscript, the Publishing Party shall be free to
submit such manuscript for publication and publish or otherwise disclose to the
public such research results.  During such stated reasonable period, if
the other party believes the manuscript contains information that is reasonably
likely to have a material adverse impact on Daclizumab for Transplant
Indications or Autoimmune Indications, as the case may be, in the Territory,
then prior to the expiration of the stated period above, the other party shall
notify the Publishing Party in writing of its determination and the reasons therefor. 
On receipt of such written notice from the other party, the Publishing Party
shall confer with the other party and shall attempt in good faith to resolve
such concerns before the Publishing Party makes any public disclosure of such
information or submission of the manuscript.   After the Reversion
Effective Date or the Put Right Effective Date, PDL shall have

 

47

 

the sole right to publish or otherwise publicly disclose, without the
consent of Roche, the results of any scientific, preclinical and clinical data
involving Daclizumab conducted by or on behalf of PDL or Roche or their
Affiliates.

 

XV.  DISPUTE RESOLUTION

 

15.1                           Arbitration. 
Except as expressly provided herein, any claim, dispute or controversy arising
out of or in connection with or relating to this Amended and Restated Worldwide
Agreement or the breach or alleged breach thereof shall be submitted by the
parties to arbitration by the American Arbitration Association (“AAA”) in Santa
Clara County, California, under the commercial rules
then in effect for that AAA except as provided herein.  All proceedings
shall be held in English and a transcribed record prepared in English. 
The parties shall choose, by mutual agreement, one arbitrator within
thirty (30) days of receipt of notice of the intent to arbitrate.  If
no arbitrator is appointed within the times herein provided or any extension of
time that is mutually agreed on, the AAA shall make such appointment within
thirty (30) days of such failure.  The award rendered by the
arbitrator shall include costs of arbitration, reasonable attorneys’ fees and
reasonable costs for expert and other witnesses, and judgment on such award may
be entered in any court having jurisdiction thereof.  The parties shall be
entitled to discovery as provided in Sections 1283.05 and 1283.1 of the
Code of Civil Procedure of the State of California, whether or not the
California Arbitration Act is deemed to apply to said arbitration. 
Nothing in this Amended and Restated Worldwide Agreement shall be deemed as
preventing either party from seeking injunctive relief (or any other
provisional remedy) from any court having jurisdiction over the parties and the
subject matter of the dispute as necessary to protect either party’s name,
proprietary information, trade secrets, know-how or any other proprietary
right.  If the issues in dispute involve scientific or technical matters,
any arbitrator chosen hereunder shall have educational training and/or
experience sufficient to demonstrate a reasonable level of knowledge in the
field of biotechnology.  Judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof.

 

XVI.  FORCE MAJEURE

 

16.1                           No
Control.  If either party shall be delayed, interrupted in or
prevented from the performance of any obligation hereunder by reason of force
majeure including an act of God, fire, flood, earthquake, war (declared or
undeclared), public disaster, act of terrorism, strike or labor differences,
governmental enactment, rule or regulation, or any other cause beyond such
party’s control, such party shall not be liable to the other therefor; and the
time for performance of such obligation shall be extended for a period equal to
the duration of the force majeure which occasioned the delay, interruption or
prevention.  The party invoking such force majeure rights of this
Section 16.1 must notify the other party by courier or overnight dispatch
(e.g., Federal Express)
within a period of fifteen (15) days of both the first and last day of the
force majeure unless the force majeure renders such notification impossible in
which case notification will be made as soon as possible.  If the delay
resulting from the force majeure exceeds six (6) months, both parties shall
consult together to find an appropriate solution.

 

48

 

XVII.  MISCELLANEOUS

 

17.1                           Representations. 
Each party represents and warrants to the other party hereto that, except as
may otherwise be disclosed in writing to such party:

 

(a)                                  each
party has the full right and authority to enter into this Amended and Restated
Worldwide Agreement; and

 

(b)                                 to
the best knowledge of the party after reasonable investigation, no Third Party
has any right, title or interest in the PDL Patents or PDL Know-How, Roche
Know-How or Roche Patents, as the case may be, or in the Joint PDL-Roche
Patents, as the result of such Third Party’s former employment of any employee
of that party.

 

17.2                           Assignment. 
Either party may assign this Amended and Restated Worldwide Agreement and the
licenses herein granted (a) to any Affiliate of such party without the consent
of the other party, provided that such party remains fully liable for the
performance of such party’s obligations hereunder by such Affiliate, or (b) to
any Third Party, on the prior written consent of the other party, not to be
unreasonably withheld; and (c) without the consent of the other party, to any
Third Party purchaser of all or substantially all of the business unit to which
this Amended and Restated Worldwide Agreement relates, which in the case of
PDL, shall mean the Daclizumab business, and in the case of Roche, shall mean
Roche’s therapeutic antibody business or transplant therapeutic business. 
The parties agree that it would be reasonable for a party to withhold consent
to the other party’s proposed assignment of this Amended and Restated Worldwide
Agreement to an entity, that is, as of the time of such proposed assignment,
[CONFIDENTIAL TREATMENT REQUESTED] (in at least one [CONFIDENTIAL TREATMENT
REQUESTED] with [CONFIDENTIAL TREATMENT REQUESTED]), or [CONFIDENTIAL TREATMENT
REQUESTED] in any [CONFIDENTIAL TREATMENT REQUESTED] any [CONFIDENTIAL
TREATMENT REQUESTED] for the [CONFIDENTIAL TREATMENT REQUESTED] of [CONFIDENTIAL
TREATMENT REQUESTED] in any [CONFIDENTIAL TREATMENT REQUESTED].  This Amended and Restated Worldwide
Agreement shall be binding on and shall inure to the benefit of the permitted
successors and assigns of the parties hereto.

 

17.3                           Entire
Agreement.  This Amended and Restated Worldwide Agreement, the
Reversion Agreement between F. Roche and PDL dated March 4, 2002 (“Japan Reversion Agreement”), the
Pharmacovigilance Agreement, and the Joint Defense Agreement dated
June 20, 2000, constitute the entire agreement between the parties hereto
with respect to the subject matter herein and, effective on the Effective Date,
supersede all previous agreements (including the 1999 Agreements), whether
written or oral, such superseding resulting in, among other things, the
licenses granted thereunder having no further force or effect and being
replaced by the licenses set forth in Article II of this Amended and
Restated Worldwide Agreement. 
Notwithstanding the foregoing, (a) certain provisions of the 1999 Agreements
shall remain in force and effect, to the extent this Amended and Restated
Worldwide Agreement so indicates by specific reference, and (b) any royalties
or other payments accruing under the 1999 Agreements prior to the Effective
Date shall remain due and payable.  This Amended and Restated Worldwide
Agreement shall not be changed or modified orally, but only by an instrument in
writing signed by both parties.

 

49

 

17.4                           Releases. 
The parties hereby confirm the releases contained in Section 15.4 of the
1999 PDL/Roche Agreement and in Section 11.4 of the F. Roche
Agreement.

 

17.5                           Severability. 
If any provision of this Amended and Restated Worldwide Agreement is declared
invalid by an arbitrator pursuant to Section 15.1 or by a court of last
resort or by any court or other governmental body from the decision of which an
appeal is not taken within the time provided by law, then and in such event,
this Amended and Restated Worldwide Agreement will be deemed to have been
terminated only as to the portion thereof that relates to the provision
invalidated by that decision and only in the relevant jurisdiction, but this
Amended and Restated Worldwide Agreement, in all other respects and all other
jurisdictions, will remain in force; provided, however, that if the provision
so invalidated is essential to the Amended and Restated Worldwide Agreement as
a whole, then the parties shall negotiate in good faith to amend the terms
hereof as nearly as practical to carry out the original intent of the parties,
and, failing such amendment, either party may submit the matter to arbitration
for resolution pursuant to Section 15.1.

 

17.6                           Indemnification.

 

(a)                                  Roche
agrees to defend, indemnify and hold harmless PDL, its trustees, officers,
agents and employees from and against any and all Third Party suits, claims,
acts, liabilities, demands, damages, expenses, and losses of any kind,
including those resulting from death, personal injury, illness or property
damage arising (i) out of the manufacture, distribution, use, testing,
promotion, marketing or sale or other disposition, by Roche, an Affiliate of
Roche, or any distributor, customer, sublicensee or representative of Roche or
anyone in privity therewith (other than PDL), of (A) any Licensed Product, as
defined in the 1999 Agreements, prior to the Effective Date, (B) Daclizumab or
any Excluded Product on or after the Effective Date, or (C) any cell lines,
their progeny, or other biological materials, method, process, device or apparatus
licensed or provided by PDL pursuant to the 1989 Agreements, the 1999
Agreements or this Amended and Restated Worldwide Agreement; (ii) as a result
of practicing a Joint Invention, or using PDL Know-How or PDL Patents licensed
to Roche under this Amended and Restated Worldwide Agreement, except where such
claim is based on the negligent acts of commission or omission of PDL; (iii)
out of any breach by Roche of any representation, warranty or covenant of this
Amended and Restated Worldwide Agreement; (iv) out of any violation of
applicable law by an action, policy or procedure of Roche or its Affiliates; or
(v) out of any negligence or willful misconduct of Roche or its Affiliates.

 

(b)                                 PDL
agrees to defend, indemnify and hold harmless Roche, its trustees, officers,
agents and employees harmless from and against any and all Third Party suits,
claims, actions, liabilities, demands, damages, expenses, and losses of any
kind, including those resulting from death, personal injury, illness or
property damage arising (i) out of the manufacture, distribution, use,
testing, promotion, marketing or sale or other disposition, by PDL, an
Affiliate of PDL, or any distributor, customer, sublicensee or representative
of PDL or anyone in privity therewith (other than Roche), of (A) Daclizumab
prior to the Effective Date, or (B) Daclizumab or any Other Licensed Product on
or after the Effective Date, or (C) any biological materials, method, process,
device or apparatus licensed or provided by Roche pursuant to this Amended and
Restated Worldwide Agreement; (ii) as a result of practicing a Joint
Invention, or using Roche

 

50

 

Know-How or Roche Patents licensed to PDL under this Amended and
Restated Worldwide Agreement, except where such claim is based on the negligent
acts of commission or omission of Roche; (iii) out of any breach by PDL of any
representation, warranty or covenant of this Amended and Restated Worldwide
Agreement; (iv) out of any violation of applicable law by an action, policy or
procedure of PDL or its Affiliates; (v) out of any negligence or willful
misconduct of PDL or its Affiliates; or (vi) from any claim for failure to pay
any license fee, royalty or other payment due on sales of Daclizumab or any Other
Licensed Product by PDL or its Affiliates or sublicensees under any license
agreement for any Roche Controlled Patents between Roche and any Third Party
licensor that PDL elected not to take a sublicense under as provided in
Section 2.8(b).

 

(c)                                  Procedure. 
In the event of a claim by a Third Party against a party entitled to
indemnification under this Amended and Restated Worldwide Agreement (“Indemnified Party”), the Indemnified Party
shall promptly notify the other party (“Indemnifying
Party”) in writing of the claim and the Indemnifying Party shall
undertake and solely manage and control, at its sole expense, the defense of
the claim and its settlement.  The Indemnified Party shall cooperate with
the Indemnifying Party, including, as requested by the Indemnifying Party and
at the Indemnifying Party’s cost, entering into a joint defense
agreement.   The Indemnified Party may, at its option and expense, be
represented in any such action or proceeding by counsel of its choice. 
The Indemnifying Party shall not be liable for any litigation costs or expenses
incurred by the Indemnified Party without the Indemnifying Party’s written
consent.  The Indemnifying Party shall not settle any such claim unless
such settlement fully and unconditionally releases the Indemnified Party from
all liability relating thereto, unless the Indemnified Party otherwise agrees
in writing.

 

17.7                           Notices. 
Any notice or report required or permitted to be given under this Amended and
Restated Worldwide Agreement shall be in writing and shall be mailed by
certified or registered mail, or telexed or telecopied and confirmed by
mailing, as follows and shall be effective five (5) days after such
mailing:

 

	
  If to PDL:

  	
   

  	
  Protein Design Labs,
  Inc.

  34801 Campus Drive

  Fremont, California U.S.A. 94555

  Attention:  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
  Protein Design Labs,
  Inc.

  34801 Campus Drive

  Fremont, California U.S.A. 94555

  Attention:  General Counsel

  
	
   

  	
   

  	
   

  
	
  If to Roche:

  	
   

  	
  Hoffmann-La Roche
  Inc.

  340 Kingsland Street

  Nutley, New Jersey 07110

  Attention:  Corporate Secretary

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
  F. Hoffmann-La Roche
  Ltd

  

 

51

 

	
   

  	
   

  	
  Grenzacherstrasse 124

  
	
   

  	
   

  	
  CH-4002 Basel,
  Switzerland

  
	
   

  	
   

  	
  Attention:  Law
  Department

  

 

17.8                           Choice
of Law.  The validity, performance, construction, and effect of this
Amended and Restated Worldwide Agreement shall be governed by the laws of the
State of California, U.S.A, without regard to conflicts of law principles that
would provide for application of the law of a jurisdiction outside California and
excluding the United Nations Convention on Contracts for the International
Sales of Goods.

 

17.9                           Publicity. 
The parties agree to issue press releases in an agreed-on form and format
concerning their entry into this Amended and Restated Worldwide Agreement, with
the content of such releases to be approved in advance by the
parties.    In all other respects, no party to this Amended and
Restated Worldwide Agreement shall use the name of the other parties in any
publicity release without the prior written permission of such other party,
which shall not be unreasonably withheld.  The other party shall have a
reasonable opportunity to review and comment on any such proposed publicity
release.  Except as required by law, no party hereto shall publicly
disclose the terms of this Amended and Restated Worldwide Agreement, the 1989
Agreements, the 1999 Agreements, the Japan Reversion Agreement, or their terms
and conditions unless expressly authorized to do so by the other party which
authorization shall not be unreasonably withheld.  In the event that
disclosure is authorized, the parties will work together to develop a mutually
acceptable disclosure.  Notwithstanding anything to the contrary herein,
if not otherwise disclosed by Roche, PDL shall not disclose to any Third Party
the amount of sales of Roche, or royalties or consideration paid by Roche with
respect to, Daclizumab or Excluded Products without the prior written consent
of Roche, except that PDL shall have the right to disclose the terms of this
Amended and Restated Worldwide Agreement to any bona fide investors, advisors,
investment banking representatives, or prospective strategic partners or
collaborators, under binder of confidentiality.  If not otherwise
disclosed by PDL, Roche shall not disclose to any Third Party the amount of
sales of PDL, or royalties or consideration paid by PDL with respect to,
Daclizumab without the prior written consent of PDL, which consent shall not be
unreasonably withheld.

 

17.10                     Further
Assurances.  The parties agree to reasonably cooperate with each other
in connection with any actions required to be taken as part of their respective
obligations under this Amended and Restated Worldwide Agreement, and shall (a)
furnish to each other such further information; (b) execute and deliver to each
other such other documents; and (c) do such other acts and things (including
working collaboratively to correct any clerical, typographical, or other
similar errors in this Amended and Restated Worldwide Agreement), all as the
other party may reasonably request for the purpose of carrying out the intent
of this Amended and Restated Worldwide Agreement.

 

17.11                     Tax Treatment and Tax Structure Disclosure. 
Notwithstanding anything herein to the contrary, any party to this
Amended and Restated Worldwide Agreement (and any employee,
representative, or other agent of any party to this Amended and Restated
Worldwide Agreement) may disclose to any and all persons, without limitation of
any kind, the tax treatment and tax structure of the transactions contemplated
by this Amended and Restated Worldwide Agreement

 

52

 

and all materials of any kind (including opinions or other tax
analyses) that are provided to it relating to such tax treatment and tax structure;
provided however, that such
disclosure may not be made to the extent a lack of disclosure is reasonably
necessary to comply with any applicable federal or state securities laws.  For the purposes of the foregoing sentence,
(a) the “tax treatment” of a transaction means the purported or claimed federal
income tax treatment of the transaction, and (b) the “tax structure” of a
transaction means any fact that may be relevant to understanding the purported
or claimed federal income tax treatment of the transaction.

 

17.12                     Agency. 
Neither party is, nor will be deemed to be an employee, agent or representative
of the other party for any purpose.  Each party is an independent
contractor, not an employee or partner of the other party.  Neither party
shall have the authority to speak for, represent or obligate the other party in
any way without prior written authority from the other party.

 

17.13                     No Waiver.  Any omission or delay by either party at any
time to enforce any right or remedy reserved to it, or to require performance
of any of the terms, covenants or provisions hereof, by the other party, shall
not constitute a waiver of such party’s rights to the future enforcement of its
rights under this Amended and Restated Worldwide Agreement.  Any waiver by a party of a particular breach
or default by the other party shall not operate or be construed as a waiver of
any subsequent breach or default by the other party.

 

17.14                     No Strict
Construction.  This Amended and
Restated Worldwide Agreement has been prepared jointly by the parties and shall
not be strictly construed against either party.

 

17.15                     Headings. 
The captions used herein are inserted for convenience of reference only and
shall not be construed to create obligations, benefits, or limitations.

 

17.16                     Counterparts. 
This Amended and Restated Worldwide Agreement may be executed in counterparts,
all of which taken together shall be regarded as one and the same instrument.

 

53

 

IN WITNESS
WHEREOF, the parties have executed this Amended and Restated Worldwide
Agreement through their duly authorized representatives to be effective as of
the Effective Date.

 

	
  PROTEIN DESIGN LABS,
  INC.

  	
  HOFFMANN-LA ROCHE INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:  

  	
  Chief Executive Officer

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  F. HOFFMANN-LA ROCHE
  LTD

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
										

 

54

 

Appendix
A

 

PDL Patent Rights

 

The following are patents and patent applications (also known as the
“Queen et al. patents”) issued and filed in certain countries in the world and
licensed as part of the PDL Patent Rights under the Agreement. (As of:
March 5, 2003)

 

1.  The following issued U.S.
patents and pending U.S. patent applications:

 

Patent No. 5,585,089, “Humanized Immunoglobulins,”
issued December 17, 1996.

 

Patent No. 5,693,761, “Polynucleotides Encoding
Improved Humanized Immunoglobulins,” issued December 2, 1997.

 

Patent No. 5,693,762, “Humanized Immunoglobulins,”
issued December 2, 1997.

 

Patent No. 6,180,370 
“Humanized Immunoglobulins and Method of Making the Same”, issued
January 30, 2001.

 

[CONFIDENTIAL TREATMENT REQUESTED]

 

2.  The following patents and
patent applications outside the U.S.:

 

	
   

  	
   

  	
   

  	
   

  	
  Patent No.

  	
   

  	
  Country

  	
   

  	
  Title*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued

  	
   

  	
  9/29/00

  	
   

  	
  AR 254487 V1

  	
   

  	
  Argentina

  	
   

  	
  “Novel Immunoglobulins,
  Their Production and Use”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  AT  0451216

  	
   

  	
  Austria

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  0451216

  	
   

  	
  Belgium

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  0682040

  	
   

  	
  Belgium

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/14/03

  	
   

  	
  1101125-4

  	
   

  	
  Brazil

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  10/27/97

  	
   

  	
  61095

  	
   

  	
  Bulgaria

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/13/02

  	
   

  	
  2328851

  	
   

  	
  Canada

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/20/02

  	
   

  	
  2006865

  	
   

  	
  Canada

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  4/11/00

  	
   

  	
  40279

  	
   

  	
  Chile

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  7/21/00

  	
   

  	
  58770

  	
   

  	
  China

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  11/4/99

  	
   

  	
  P920500A

  	
   

  	
  Croatia

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  12/02/02

  	
   

  	
  174317

  	
   

  	
  Denmark

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  0451216B1

  	
   

  	
  Europe(1)

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  0682040 B1

  	
   

  	
  Europe(1)

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  3/28/02

  	
   

  	
  108797

  	
   

  	
  Finland

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  FR0451216

  	
   

  	
  France

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  FR0682040

  	
   

  	
  France

  	
   

  	
  ”

  

 

55

 

	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  DE 68925536.5

  	
   

  	
  Germany

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  DE 68929061.6

  	
   

  	
  Germany

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  DD 296 964

  	
   

  	
  East Germany

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  GB 0451216

  	
   

  	
  Great Britain

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  GB 0682040

  	
   

  	
  Great Britain

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/5/93

  	
   

  	
  1001050

  	
   

  	
  Greece

  	
   

  	
  ”

  
	
  Regist.

  	
   

  	
  7/14/00

  	
   

  	
  0682040

  	
   

  	
  Hong Kong

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  3/22/96

  	
   

  	
  211174

  	
   

  	
  Hungary

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  2/3/03

  	
   

  	
  82755

  	
   

  	
  Ireland

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  IT 0451216

  	
   

  	
  Italy

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  IT 0682040

  	
   

  	
  Italy

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  LU 0451216

  	
   

  	
  Luxembourg

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  LU 0682040

  	
   

  	
  Luxembourg

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  2/18/92

  	
   

  	
  92.2146

  	
   

  	
  Monaco

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  NL 0451216

  	
   

  	
  Netherlands

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  NL 0682040

  	
   

  	
  Netherlands

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  10/20/97

  	
   

  	
  231984

  	
   

  	
  New Zealand

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  6/8/00

  	
   

  	
  314793

  	
   

  	
  New Zealand

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  7/9/01

  	
   

  	
  19912385

  	
   

  	
  Norway(3)

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  12/26/91

  	
   

  	
  132068

  	
   

  	
  Pakistan

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  5/17/96

  	
   

  	
  29729

  	
   

  	
  Philippines

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  10/20/95

  	
   

  	
  92758

  	
   

  	
  Portugal

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  2/10/99

  	
   

  	
  2126046

  	
   

  	
  Russia

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  SG 0451216

  	
   

  	
  Singapore

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  5/22/01

  	
   

  	
  78258

  	
   

  	
  Singapore

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  2/28/99

  	
   

  	
  8912489

  	
   

  	
  Slovenia

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  10/31/90

  	
   

  	
  89/9956

  	
   

  	
  South Africa

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  11/23/98

  	
   

  	
  178385

  	
   

  	
  South Korea

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  2081974 T3

  	
   

  	
  Spain

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  0682040

  	
   

  	
  Spain

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  SE 0451216

  	
   

  	
  Sweden

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  SE 0682040

  	
   

  	
  Sweden

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  1/24/96

  	
   

  	
  CH 0451216

  	
   

  	
  Switzerland

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  8/25/99

  	
   

  	
  CH 0682040

  	
   

  	
  Switzerland

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  12/2/91

  	
   

  	
  50034

  	
   

  	
  Taiwan

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  5/19/93

  	
   

  	
  13349

  	
   

  	
  Uruguay

  	
   

  	
  ”

  
	
  Issued

  	
   

  	
  2/9/96

  	
   

  	
  56455

  	
   

  	
  Venezuela

  	
   

  	
  ”

  

 

[CONFIDENTIAL TREATMENT REQUESTED]

 

56

 

* Exact titles may differ in different countries.

(1) and corresponding European national patents issued
therefrom.

(2) registration date

[CONFIDENTIAL TREATMENT REQUESTED]

 

57

 

Appendix
B

 

Third
Party Licenses as of the Effective Date

 

[CONFIDENTIAL TREATMENT REQUESTED]

 

58

 

Appendix
C

 

PDL Sole
Territory:  Countries or Jurisdictions in which All Rights Have Reverted
to PDL

 

[CONFIDENTIAL TREATMENT REQUESTED]

 

59

 

Appendix
D

 

Example
of Section 7.4(c) Royalty Adjustments

 

[CONFIDENTIAL TREATMENT REQUESTED]

 

60

 

Schedule 2.8(a)

 

Certain
Roche Owned Patents

 

[CONFIDENTIAL
TREATMENT REQUESTED]

 

61

 

Schedule 2.8(b)

 

Certain
Roche Controlled Patents

 

All patents and
patent applications licensed to Roche in the following agreements:

 

[CONFIDENTIAL
TREATMENT REQUESTED]

 

62

 

Schedule 2.8(e)

 

Notices
of Third Party IP Rights

 

[CONFIDENTIAL
TREATMENT REQUESTED]

 

63

 

Schedule 2.8(f)

 

Third
Party Licenses

 

[CONFIDENTIAL
TREATMENT REQUESTED]

 

64EXHIBIT
10.3

 

 

SUBLEASE

 

 

THIS SUBLEASE (“Sublease”) is made as of July 31,
2003 by and between PROTEIN DESIGN LABS, INC., a Delaware corporation
(“Subtenant”), and ABGENIX, INC., a Delaware corporation (“Sublandlord”).

 

R  E  C  I  T  A
L  S

 

A.                                   John
Arrillaga, Trustee or his successor trustee, UTA dated 7/20/77 (John Arrillaga
Survivor’s Trust) as amended, and Richard T. Peery, Trustee, or his successor
trustee, UTA dated 7/20/77 (Richard T. Peery Separate Property Trust), as
amended (collectively, “Master Landlord”), and Sublandlord as Tenant, are
parties to a certain Lease Agreement dated as of January 22, 2002 (the
“Master Lease”), a copy of which is attached hereto as Exhibit A.

 

B.                                     Pursuant
to the terms of the Master Lease, Master Landlord presently leases to
Sublandlord that certain premises consisting of approximately 50,668 rentable
square feet located at 34700 Campus Drive, Fremont, California (as more
particularly described in the Master Lease, the “Premises” or “Building”).  (Initially capitalized terms not otherwise
defined in this Sublease shall have the meanings attributed to such terms in
the Master Lease; and unless otherwise expressly provided herein all references
in this Sublease to “Article” and “Section” shall refer to the respective
“Article” or “Section” of the Master Lease and all references to “Paragraph” in
this Sublease shall refer to the respective “Paragraph” of this Sublease.)

 

C.                                     Sublandlord
now desires to sublease to Subtenant, and Subtenant now desires to sublease
from Sublandlord, the entire Premises (hereinafter referred to as the “Sublease
Premises”), on the terms and conditions contained herein.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.                                       Sublease.  Sublandlord hereby subleases to Subtenant,
and Subtenant hereby subleases from Sublandlord, the Sublease Premises,
together with all appurtenances thereto as provided in the Master Lease, on the
terms and conditions contained in this Sublease.

 

2.             Term.

 

(a)                                  The
term of this Sublease (“Sublease Term”) shall commence as of the later of (i)
October 1, 2003 or (ii) the date of obtaining of Master Landlord’s consent
as described in Paragraph 19(f) hereof (as so determined, the “Sublease
Commencement Date”), and shall expire approximately thirty-nine (39) months
after the Sublease

 

 

Commencement Date on the
fixed expiration date of December 31, 2006, unless (A) sooner terminated
in accordance with the provisions hereof or the provisions of the Master Lease
or (B) extended in accordance with the provisions of Paragraph 5 hereof. Except
as provided in Paragraph 5 hereof, Subtenant shall not have any right or option
to extend the term of this Sublease, notwithstanding any right of Sublandlord
to extend the term of the Master Lease.

 

(b)                                 Upon
execution of this Sublease and payment of Subtenant’s Base Rent for the first
month of the Sublease Term pursuant to Paragraph 4(a), Subtenant may upon
advance notice to and coordination of scheduling with Sublandlord, enter upon
the Sublease Premises prior to the Sublease Commencement Date for the purpose
of space planning, installing telephone wiring and cabling or any other
improvements permitted by Sublandlord under this Sublease other than for the
conduct of its business, such early entry shall be at Subtenant’s sole risk and
subject to all the terms and provisions hereof (including satisfaction of the
insurance requirements set forth herein). 
Sublandlord shall have the right to impose such additional conditions on
Subtenant’s early entry as Sublandlord may consider reasonable under the circumstances.

 

3.                                       Conditions
of Sublease Premises.  In
entering into this Sublease, Subtenant has not relied upon or been induced by
any statements or representations of any persons with respect to the physical
condition of the Sublease Premises or with respect to any other matter
affecting the Sublease Premises, that might be pertinent in considering the
leasing of the Sublease Premises or the execution of this Sublease.  Subtenant has, on the contrary, relied
solely on such investigations, examinations and inspections as Subtenant has
chosen to make or have made on its behalf. 
Subtenant acknowledges that it has been afforded the opportunity for
full and complete investigations, examinations and inspections.  Sublandlord hereby warrants that all
mechanical, plumbing, and electrical systems in the Premises shall be in good
operating condition for the first seventy-five (75) days of the Sublease
Term.  In the event that Subtenant’s
construction of Subtenant Alterations (as defined in Paragraph 14 below)
or Subtenant’s or Subtenant’s agents, employees, contractors, officers or
directors negligence or willful misconduct causes damage to the mechanical,
plumbing or electrical systems in the Premises, Sublandlord shall not be
responsible for the repair of the same. 
Except as set forth in this Paragraph 3, upon taking possession of the
Sublease Premises, Subtenant shall be deemed to have accepted the Sublease
Premises in an “as-is” condition.

 

4.                                       Rent/Security Deposit

 

(a)                                  Subtenant
shall pay to Sublandlord, monthly on or before three (3) business days prior to
the first day of each calendar month throughout the Sublease Term, rental for
the Sublease Premises equal to the sum of (i) Fifty-Two Thousand Five Hundred
Dollars ($52,500) per month from the Sublease Commencement Date through
April 30, 2004, Seventy-Six Thousand Thirty-Two Dollars ($76,032) per
month from May 1, 2004 through October 31, 2004, Seventy-Eight
Thousand Five Hundred Sixty-Six

 

2

 

and 40/100ths Dollars
($78,566.40) from November 1, 2004 through October 31, 2005,
Eighty-One Thousand One Hundred and 80/100ths Dollars ($81,100.80) from
November 1, 2005 through December 31, 2006 (“Subtenant’s Base Rent”);
(ii) Subtenant’s Additional Rent (as defined in Paragraph 4(b)); and (iii) any
other amounts, charges, expenses or sums Subtenant is required to pay under
this Sublease (collectively, “Subtenant’s Rent”).  Subtenant shall remain responsible for Subtenant’s Rent and any
other amounts or charges which first arise, accrue or are invoiced at any time
during or after the expiration of the Sublease Term, whether by Sublandlord or
Master Landlord, to the extent they arise or accrue from any liabilities or
obligations of Subtenant under the provisions of this Sublease (including any
provisions of the Master Lease which are incorporated herein as liabilities or
obligations of Subtenant). 
Notwithstanding anything to the contrary contained herein, Subtenant
shall pay in advance to Sublandlord, upon execution of this Sublease,
Subtenant’s Base Rent payable for the first month of the Sublease Term.

 

(b)                                 In
addition to Subtenant’s Base Rent, Subtenant shall pay to Sublandlord, in
accordance with Paragraph 4(a), (i) Subtenant’s Share (as defined below) of the
aggregate sum of all Additional Rent (as defined in the Master Lease)
including, without limitation, all Taxes (as defined in Article 9 of the
Master Lease) relating to the Sublease Premises, all insurance premiums (as
described in Article 12 of the Master Lease), (ii) any other costs or
expenses incurred by Sublandlord in the performance of Sublandlord’s
obligations under the Master Lease and (iii) any other amounts or charges which
will become due and payable to Master Landlord under the terms of the Master
Lease during or with respect to the ensuing calendar month (collectively,
“Subtenant’s Additional Rent”). 
Subtenant’s Additional Rent shall be calculated by Sublandlord in
accordance with Paragraph 4(c).  For
purposes of this Sublease, the term “Subtenant’s Share” shall mean one hundred
percent (100%).

 

(c)                                  Prior
to or at any time after the commencement of each calendar year during the
Sublease Term, Sublandlord may provide Subtenant with notice of Sublandlord’s
estimate of the amount of Subtenant’s Additional Rent which will be payable for
such calendar year.  Subtenant shall pay
to Sublandlord, on a monthly basis as provided in Paragraph 4(a), Subtenant’s
Additional Rent in an amount equal to one twelfth (1/12) of the amount of
Sublandlord’s estimate of Subtenant’s Additional Rent for the relevant calendar
year of the Sublease Term.  If the cost
of any item included in Subtenant’s Additional Rent is increased during a
calendar year, Sublandlord may increase the estimated Subtenant’s Additional
Rent during such year by giving Subtenant written notice to that effect, and
thereafter, Subtenant shall pay to Sublandlord, in each of the remaining months
of such year, an amount equal to the amount of such increase in the estimated
Subtenant’s Additional Rent divided by the number of months remaining in such
year.  Within thirty (30) days (or as
soon thereafter as possible) after receipt from the year-end reconciliation of
Additional Rent from Master Landlord under the Master Lease, Sublandlord shall
provide Subtenant with a statement of the amount of such year’s actual
Subtenant’s Additional Rent owed by Subtenant, together with a list of types of

 

3

 

expenses and related
amounts incorporated in such statement and a copy of the statement of
Additional Rent delivered to Sublandlord pursuant to Section 4(D) of the
Master Lease.  If the amount set forth
in such statement exceeds the amount actually paid by Subtenant for such year,
Subtenant shall pay the amount still owing to Sublandlord within ten (10) days
of receipt of such statement, which obligation shall survive the expiration or
earlier termination of this Sublease. 
If the amount set forth in such statement is less than the amount
actually paid by Subtenant, Sublandlord shall credit the amount of Subtenant’s
excess against the next accruing payment(s) of Subtenant’s Additional Rent or
reimburse Subtenant for the same if this Sublease has terminated prior to the
date such determination is made.

 

(d)                                 Subtenant’s
Rent and all other sums or charges due or payable by Subtenant to Sublandlord
hereunder shall be due and payable without billing or demand, and without
deduction, set-off or counter claim, in lawful money of the United States of
America, at Sublandlord’s address for notices in Paragraph 11 hereof or to such
other person or at such other place as Sublandlord may from time to time
designate in writing, and shall be due and payable by Subtenant to Sublandlord
on or before the date specified in subparagraph (a) of this Paragraph 4,
provided that if no date is therein specified as to the applicable payment,
then on or before (i) three (3) business days prior to the corresponding date
provided in the Master Lease for payment of the same by Sublandlord to Master
Landlord or (ii) if there is no corresponding date provided in the Master Lease
for payment of the same by Sublandlord to Master Landlord, then ten (10) days
after written request from Sublandlord to Subtenant.  The failure of Subtenant to make any payments of Subtenant’s Rent
or any other sums or charges payable by Subtenant by the date provided herein
shall subject Subtenant to the obligation to pay to Sublandlord late charges in
accordance with Paragraph 4(h).

 

(e)                                  If
the Sublease Term commences on a day other than the first day of a calendar
month or ends on a day other than the last day of a calendar month, then
Subtenant’s Rent for the first and last fractional months of the Sublease Term
shall be appropriately prorated.

 

(f)                                    With
reasonable advance notice to Subtenant, Sublandlord may at any time or from
time to time instruct Subtenant to make any payment of Subtenant’s Rent or
Subtenant’s Share of any other sums or charges falling due under the Master
Lease directly to Master Landlord, in which event Subtenant shall timely make
all such payments so instructed directly to Master Landlord (with a copy of the
check to be contemporaneously forwarded by Subtenant to Sublandlord at the time
of making of each such payment), and in such event Sublandlord shall have no responsibility
to Subtenant for the payment of any such amount, and Subtenant shall be solely
responsible for any interest or late charges that may be imposed as a result of
any failure of Subtenant to have timely and properly made any such payment to
Master Landlord.

 

(g)                                 Security
Deposit.  Concurrently with
Subtenant’s execution of this Sublease, Subtenant shall deposit with
Sublandlord a security deposit (“Security

 

4

 

Deposit”) in the amount
of Seventy-Six Thousand Thirty-Two and no/100ths Dollars ($76,032), as security
for the full and faithful performance of every provision of this Sublease to be
performed by Subtenant.  If Subtenant
defaults with respect to any provision of this Sublease, including but not limited
to the provisions relating to the payment of Subtenant’s Rent, Sublandlord may
use, apply or retain all or any part of the Security Deposit for the payment of
any Subtenant’s Rent or any other amount which Sublandlord may spend or become
obligated to spend by reason of Subtenant’s default, to repair damages to the
Sublease Premises, to clean the Sublease Premises or to compensate Sublandlord
for any other loss or damage which Sublandlord may suffer by reason of
Subtenant’s default.  Sublandlord shall
not be required to keep the Security Deposit separate from its general funds,
and Subtenant shall not be entitled to interest on such deposit.  If Subtenant shall have then performed all
of its obligations under this Sublease to be performed by it, the Security
Deposit or any balance thereof shall be returned to Subtenant within thirty
(30) days of the expiration of the Sublease Term.

 

(h)                                 Late
Payment Charges. 
SUBTENANT ACKNOWLEDGES THAT LATE PAYMENT BY SUBTENANT TO SUBLANDLORD OF
SUBTENANT’S RENT AND OTHER CHARGES PROVIDED FOR UNDER THIS SUBLEASE WILL CAUSE
SUBLANDLORD TO INCUR COSTS NOT CONTEMPLATED BY THIS SUBLEASE, THE EXACT AMOUNT
OF SUCH COSTS BEING EXTREMELY DIFFICULT OR IMPRACTICABLE TO FIX.  THEREFORE, IF ANY INSTALLMENT OF RENT OR ANY
OTHER CHARGE DUE FROM SUBTENANT IS NOT RECEIVED BY SUBLANDLORD WITHIN FIVE DAYS
OF THE DATE DUE, SUBTENANT SHALL PAY TO SUBLANDLORD AN ADDITIONAL SUM EQUAL TO
TEN PERCENT (10%) OF THE AMOUNT OVERDUE AS A LATE CHARGE.  THE PARTIES AGREE THAT THIS LATE CHARGE
REPRESENTS A FAIR AND REASONABLE ESTIMATE OF THE COSTS THAT SUBLANDLORD WILL
INCUR BY REASON OF THE LATE PAYMENT BY SUBTENANT.  SUCH LATE CHARGE SHALL BE IN ADDITION TO, AND NOT IN LIEU OF, ANY
INTEREST THAT MAY ACCRUE ON ANY SUCH OVERDUE AMOUNT PURSUANT TO THE PROVISIONS
OF THE MASTER LEASE.

 

Initials:

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Sublandlord

  	
   

  	
  Subtenant

  	
   

  

 

5.                                       Extension
of Sublease Term.

 

(a)                                  Conditions
to Exercise of Option.  Provided
that Subtenant is not in default under this Sublease and Subtenant is in
occupancy of the entire Sublease Premises at the time of exercise of each
option to extend and at the commencement of the applicable extension term,
Subtenant shall have the right to extend the Sublease Term for three
consecutive extension periods, the first being a period of two (2) years
commencing upon the expiration of the initial Sublease Term (the “First
Extension Term”), followed

 

5

 

by a period of eighteen
(18) months commencing upon the expiration of the First Extension Term (the
“Second Extension Term”), followed by another period of eighteen (18) months
commencing upon the expiration of the Second Extension Term (the “Third
Extension Term”).

 

(b)                                 Notice
of Exercise.  If Subtenant elects to
extend this Lease for the First Extension Term, Subtenant shall give written
notice of its exercise to Sublandlord not later than July 1, 2004.  In the event that Subtenant exercises the
First Extension Term, Subtenant shall give Sublandlord written notice with
regard to the Second Extension term not more than three hundred sixty-five
(365) days prior to the expiration of the First Extension Term and not less
than one hundred eighty (180) days prior to the expiration of the First
Extension Term.  In the event that
Subtenant exercises the Second Extension Term, Subtenant shall give Sublandlord
written notice with regard to the Third Extension term not more than three
hundred sixty-five (365) days prior to the expiration of the Second Extension
Term and not less than one hundred eighty (180) days prior to the expiration of
the Second Extension Term.  (The notices
set forth above are collectively referred to herein as the “Exercise
Notice”.)  Subtenant’s failure to provide
any Exercise Notice within the time periods contemplated herein shall be deemed
a waiver of Subtenant’s right to exercise the applicable extension term.

 

(c)                                  Conditions
Terminating Tenant’s Rights to Exercise Options.  In the event that any payment of Subtenant’s Rent due hereunder
is thirty (30) or more days late four (4) or more times during any calendar
year of the Sublease Term or the then current extension term, Subtenant shall
not have the right to further extend the Sublease Term.

 

(d)                                 Terms
of the Extension Terms.  The giving
of an Exercise Notice shall constitute an irrevocable election by Subtenant to
extend the Sublease upon the terms, covenants and conditions set forth
herein.  The terms, covenants and
conditions applicable to each applicable Extension Term shall be the same terms,
covenants and conditions of this Sublease except that (1) Subtenant shall not
be entitled to any further option to extend after the Third Extension Term, (2)
the Base Rent for the Extension Term shall be adjusted as provided in this
Paragraph; and (3) no provisions relating to the initial delivery of the
Sublease Premises to Subtenant (including, but not limited to, any construction
obligations or tenant improvement allowance provisions) shall be applicable to
any Extension Term.

 

(e)                                  Extension
Option Personal to Original Subtenant. 
The options to extend granted to Subtenant pursuant to this Paragraph
shall not be assignable to any successor or assign of Subtenant, and shall
terminate at the option of Sublandlord, if, at any time during the Sublease
Term or applicable extension term, Subtenant has subleased all or any portion
of the Sublease Premises to any other party.

 

(f)                                    Conditions
to Exercise or Termination of Option May Only Be Asserted By Sublandlord
and May Be Waived By Sublandlord. 
The conditions to the exercise by Subtenant of any Extension Option and
the conditions which may terminate

 

6

 

Subtenant’s right to
exercise the Extension Options as set forth in this Paragraph 5, are solely for
the benefit of Sublandlord and any such conditions may be affirmatively waived
by Sublandlord in writing.  Subtenant
may not, after the giving of any Exercise Notice, assert that because any such
condition is then or thereafter not fully satisfied, that such condition
renders such Exercise Notice ineffective or entitles Subtenant to terminate the
applicable Extension Option.

 

(g)                                 Determination
of Base Rent During Extension Term.

 

(i)                                     Extension
Term Initial Base Rent.  The Base
Rent during the First Extension Term shall be Eighty-Six Thousand One Hundred Sixty-Nine
and 60/100ths Dollars (86,169.60) per month. 
The Base Rent during the first year of the Second Extension Term shall
be equal to the greater of (1) the “Fair Market Rental Value” of the Sublease
Premises for the first year of the Second Extension Term determined as provided
herein or (2) the Base Rent for the last month of the First Extension Term (as
so determined pursuant to clause (1) or (2) above, the “Second Extension Term
Initial Base Rent”).

 

(ii)                                  Fair
Market Rental Value.  “Fair Market
Rental Value” as used herein shall mean: 
100% of the base rent and other amounts new or renewal tenants (who do
not have any below market renewal rights) at which tenants lease comparable
space as of the commencement of the Second Renewal Term.  For this purpose comparable space
(“Comparable Space”) shall be office, light manufacturing and research and
development space which is (i) not subleased; (ii) not subject to another
tenant’s expansion right; (iii) comparable in size, location, and quality to the
Sublease Premises, (iv) leased for a term comparable to the Second Renewal Term
and (v) located in comparable buildings. 
In determining the Fair Market Rental Value of the Sublease Premises
during the Extension Term, consideration shall be given to the uses of the
Sublease Premises permitted under this Sublease, the quality, size, design and
location of the Sublease Premises, the credit worthiness of the tenant, and the
rental value of comparable, improved, space located in the geographical area of
the Building (ignoring tenant improvement allowances, free rent periods, and
other tenant benefits/concessions typically associated with a new lease it
being acknowledged that the option to extend hereunder reflects Subtenant’s
negotiated right to defer its decision whether to initially lease the Sublease
Premises for such longer period of time, as opposed to Subtenant’s right to
enter into a new sublease).

 

(iii)                               Sublandlord
and Subtenant to Seek to Agree. 
Sublandlord and Subtenant shall have thirty (30) days after Sublandlord
receives the applicable Exercise Notice in which to seek to agree on the Second
Extension Term Initial Base Rent.  If
Sublandlord and Subtenant agree on the Second Extension Term Initial Base Rent
during the thirty (30) day period (or at any time thereafter), they immediately
shall execute an amendment to this Sublease confirming the Second 

 

7

 

Extension Term
Initial Base Rent as so agreed as the Base Rent for the first year of the
Second Extension Term.

 

(iv)                              Selection
of Appraiser to Determine the Second Extension Term Initial Base Rent.  If Sublandlord and Subtenant are unable to
agree on the Second Extension Term Initial Base Rent within the thirty (30) day
period, then  the Second Extension Term
Initial Base Rent shall be determined by an appraisal as herein set forth and
the Second Extension Term Initial Base Rent as so determined shall be binding
upon Sublandlord and Subtenant. 
Sublandlord and Subtenant shall appoint an appraiser within ten (10)
days after the expiration of such thirty (30) day period.  If the Sublandlord and Subtenant are unable
to agree upon an appraiser, then either party may immediately request the
Presiding Judge of the San Francisco Superior Court to make such selection.  Such appraiser shall complete an appraisal
within the next thirty (30) days.  The
appraiser shall select the rental figure named by Sublandlord or Subtenant
which such appraiser feels most nearly approximates the Fair Market Rental
Value of the Sublease Premises.  The
appraiser may not select any other figure. 
The decision of the appraiser shall be final and binding. The cost of
the appraisal shall be shared equally by Sublandlord and Subtenant.  Unless the parties agree on lesser
qualifications, to be appointed as an appraiser the person so appointed shall
hold the professional designation MAI awarded by the American Institute of Real
Estate Appraisers or such designation as may then be the preeminent
professional designation, hold any licenses which may then be required by law
and have at least three years current experience in appraisal of commercial
properties in the San Francisco Bay Area. Until the appraisal is completed
Subtenant shall continue to pay the Subtenant’s Base Rent for the last month of
the First Extension Term.

 

(v)                                 Notice
to Sublandlord and Subtenant.  After the Second Extension Term Initial Base
Rent for the first year of the Second Extension Term has been set by the
appraiser pursuant to subparagraph (iv) above, the appraiser shall notify
Sublandlord and Subtenant immediately and Sublandlord and Subtenant shall
immediately execute an amendment to this Sublease confirming the Second
Extension Term Initial Base Rent as so determined as the Subtenant’s Base Rent
for the first year of the Second Extension Term (and any increases thereto).

 

(vi)                              Base
Rent Third Extension Term.  Base
Rent during the Third Extension Term shall be determined through the process
set forth above, with references therein to “Second Extension Term” meaning
“Third Extension Term” and references therein to “First Extension Term” meaning
“Second Extension Term.”

 

8

 

6.                                       Incorporation
of Master Lease.

 

(a)                                  This
Sublease is subject to all of the terms and conditions of the Master Lease, all
of which are hereby incorporated by reference. 
Except as provided in Paragraph 6(e) below, all references in the Master
Lease to “Landlord” and “Tenant” shall, for purposes of incorporation thereof
into this Sublease, mean and refer to Sublandlord and Subtenant,
respectively.  Subtenant hereby agrees
to be bound by the terms of the Master Lease and, with respect to the Sublease
Premises, hereby assumes and agrees to pay, perform and observe for the benefit
of Master Landlord and Sublandlord, each and all of the liabilities,
obligations, covenants, conditions and restrictions to be paid, performed or
observed by Sublandlord, as Tenant, under the Master Lease, except to the
extent any of the same are herein expressly acknowledged not to constitute an
obligation of Subtenant.  Without
limiting the foregoing, Subtenant shall not commit or permit to be committed on
the Sublease Premises any act or omission which shall violate any term,
covenant or condition of the Master Lease.

 

(b)                                 Notwithstanding
the foregoing, whenever any provision of the Master Lease incorporated herein
specifies a time period in connection with the payment or performance of any
liability or obligation by Subtenant hereunder, or any notice period or other
time condition to the exercise of any right or remedy by Sublandlord hereunder,
such time period shall be shortened in each instance by three (3) business days
for the purpose of incorporation into this Sublease.  Any default notice or other notice of any obligation (including
any billing or invoice for any Subtenant’s Rent or any other expense or charge
falling due under the Master Lease) from Master Landlord which is received by
Subtenant (whether directly or as a result of being forwarded by Sublandlord to
Subtenant) shall constitute such notice from Sublandlord to Subtenant under
this Sublease without the need for any additional notice from Sublandlord.  If Subtenant shall fail to pay any
installment of Subtenant’s Rent or any other expense or charge when due
hereunder or shall breach or default in the observance or performance of any
conditions or covenants to be observed or performed by Subtenant hereunder
(including under any of the applicable provisions of the Master Lease
incorporated herein), then Sublandlord shall have and may exercise all rights
and remedies against Subtenant as provided to Master Landlord in the event of
default by Sublandlord as set forth in the Master Lease (including, but not
limited to, the rights and remedies provided in Article 19.02 of the Master
Lease).

 

(c)                                  This
Sublease is and shall be at all times subject and subordinate to the Master
Lease, including all rights of Master Landlord thereunder.  Without limiting the generality of the
foregoing, in the event of termination of Sublandlord’s interest under the
Master Lease for any reason (including, without limitation, upon the occurrence
of any casualty or condemnation pertaining to the Sublease Premises), this
Sublease shall terminate coincidentally therewith without any liability of
Sublandlord to Subtenant.  Sublandlord
agrees that, notwithstanding the provisions of Paragraph 12 below, so
long as Subtenant is not in Default hereunder beyond any applicable notice and
cure periods, Sublandlord shall not voluntarily terminate the Master Lease without
the prior written consent of Subtenant, which consent may be withheld in
Subtenant’s sole and absolute discretion.

 

9

 

(d)                                 In
the event of conflict between any provision of the Master Lease which is
incorporated herein as described above in this Paragraph 6 and any provision of
this Sublease, the latter shall control. 
In determining whether to grant or withhold any consent or approval
hereunder, Sublandlord may expressly condition the same upon the consent or
approval of Master Landlord, as applicable, if such consent or approval is
required under the Master Lease.

 

(e)                                  The
following provisions of the Master Lease are hereby acknowledged by Sublandlord
and Subtenant not to be incorporated by reference into this Sublease:  Article 2 (Term); Article 3
(Possession); Article 4 (Rent); Article 13 (Indemnification);
Article 27 (Construction Changes); Article 31 (Notices);
Article 39 (Basic Rent); Article 40 (Consent); Section 42(A)
(Assignment to Affiliates); Article 48 (Termination Contingency);
Article 49 (Brokers); Article 50 (Cross Default); Article 51
(Option to Extend); Article 52 (Existing Tenant Improvements);
Article 53 (Trade Fixtures); and Exhibits A, B-1, C and D.

 

(f)                                    Sublandlord
and Subtenant agree that Sublandlord shall not be responsible or liable to
Subtenant for the performance or nonperformance of any obligations of Master
Landlord under the Master Lease, and in furtherance thereof agree as follows:

 

(i)                                     Notwithstanding
anything to the contrary contained in this Sublease, Sublandlord shall not be
required to (A) provide or perform any insurance and services (including
without limitation, the insurance described in Article 12 of the Master
Lease) or any alterations, improvements, improvement allowances or other
construction obligations as to the Sublease Premises that Master Landlord may
have agreed to provide or perform pursuant to the Master Lease or as required
by law, (B) provide any utilities (including electricity) to the Sublease Premises
that Master Landlord may have agreed to furnish pursuant to any provision of
the Master Lease (or as required by law), (C) perform any maintenance or make
any of the repairs to the Sublease Premises or the Building that Master
Landlord may have agreed to perform or make (or as required by law), (D) comply
with any laws or requirements of governmental authorities regarding the
maintenance or operation of the Sublease Premises, (E) take any other action
relating to the operation, maintenance, repair, alteration or servicing of the
Sublease Premises that Master Landlord may have agreed to provide, furnish,
make, comply with, or take, or cause to be provided, furnished, made, complied
with or taken under the Master Lease, or (F) provide Subtenant with any rebate,
credit, allowance or other concession required of Master Landlord pursuant to
the Master Lease except to pass through to Subtenant any such rebate, credit,
allowance or concession that may in fact be granted by the Master Landlord,
with respect to the Sublease Premises during the term of this Sublease.  Sublandlord makes no representation or
warranty of quiet enjoyment as to any persons claiming by, through or under
Master Landlord.

 

10

 

(ii)                                  Sublandlord
agrees, upon request of Subtenant, to use commercially reasonable efforts, at
Subtenant’s sole cost and expense, to cause Master Landlord to provide,
furnish, or comply with any of Master Landlord’s obligations under the Master
Lease (provided, however, that Sublandlord shall not be obligated to use such
efforts or take any action which, in Sublandlord’s reasonable judgment, might
give rise to a default by Sublandlord under the Master Lease).  If Master Landlord shall default in the
performance of any of its obligations under the Master Lease or at law,
Sublandlord shall, upon request and at the expense of Subtenant, cooperate with
Subtenant in the prosecution of any action or proceeding which Sublandlord, in
its reasonable judgment, deems meritorious, in order to have Master Landlord
(A) make such repairs, furnish such electricity, provide such services or
comply with any other obligation of Master Landlord under the Master Lease or
as required by law, and/or (B) compensate Subtenant for any earlier default by
Master Landlord in the payment or performance of its liabilities and
obligations under the Master Lease during the Sublease Term.

 

(iii)                               The
indemnity obligation of Subtenant as set forth in  Paragraph 9(b) shall apply to any claims of
Master Landlord arising from or in connection with any such request, action or
proceeding referred to in clause (ii) above.

 

(iv)                              Subtenant
shall not make any claim against Sublandlord for any damage which may arise by
reason of:  (i) the failure of Master
Landlord to keep, observe or perform any of its obligations under the Master
Lease; or (ii) the acts or omissions of Master Landlord or its agents,
contractors, employees, invitees or licensees.

 

(g)                                 Subtenant
agrees that any waiver of liability, waiver of subrogation rights, or
indemnification provisions in the Master Lease which are incorporated herein as
waivers or obligations of Subtenant (including, without limitation,
Article 12 of the Master Lease), shall be deemed expanded so as to provide
for Subtenant to make such waivers and provide such indemnities not only in
favor of Sublandlord, but also in favor of Master Landlord, and the respective
affiliated employees, agents and the like of both Sublandlord and Master
Landlord as enumerated in such provisions.

 

7.                                       Insurance.  Subtenant shall comply in all respects with
the provisions of Articles 10 and 11 of the Master Lease with regard to
the maintenance of insurance.  Such
insurance shall name, as additional insureds, Master Landlord, Sublandlord and
any other parties required to be named under the terms of the Master Lease, and
a policy or certificate thereof shall be provided to Sublandlord not later than
two business days prior to the commencement of the term of this Sublease.  The maintenance of insurance coverage with
respect to the Sublease Premises and any property of Subtenant shall be the
sole obligation of Subtenant.  All
insurance required to be maintained by Subtenant

 

11

 

shall provide for thirty
(30) days prior written notice to Sublandlord and Master Landlord in the event
of any termination or reduction in coverage of such insurance.

 

8.             Surrender and Holdover.

 

(a)                                  As
soon as its right to possession ends, Subtenant will surrender the Sublease
Premises to Sublandlord in as good repair and condition as when Subtenant first
occupied, except for reasonable wear and tear, and for damage or destruction by
fire or other casualty for which Subtenant is not otherwise responsible.  Subtenant will concurrently deliver to
Sublandlord all keys to the Sublease Premises, and restore any locks which it
has changed to the system which existed at the commencement of the Term.  If possession is not immediately
surrendered, Sublandlord may enter upon and take possession of the Sublease
Premises and expel or remove Subtenant and any other person who may be
occupying the Sublease Premises or any part thereof.

 

(b)                                 Under
no circumstances shall Subtenant be permitted to holdover following the end of
the term of this Sublease.  Accordingly,
if Subtenant has not fully surrendered possession of the Sublease Premises in
the manner required hereunder on or before termination of this Sublease, all of
the terms, covenants and agreements hereof shall continue to bind Subtenant to
the extent applicable, except that (a) the monthly Subtenant’s Base Rent
shall be equal to one-hundred-fifty percent (150%) of Subtenant’s Base Rent
payable by Subtenant under this Sublease for the month immediately preceding
such holdover period, and (b) Subtenant shall indemnify and defend Sublandlord
against, and hold Sublandlord harmless from, any and all claims, losses and
liabilities for damages, consequential or otherwise, resulting from Subtenant’s
failure to surrender possession, including, without limitation, any such claims
by Master Landlord or any successor tenant of all or any portion of the
Premises.

 

9.                                       Waiver
and Indemnification.

 

(a)                                  Sublandlord
shall not be liable or responsible in any way for, and Subtenant hereby waives
all claims against Sublandlord with respect to or arising out of, (i) any
death, illness or injury of any nature whatsoever that may be suffered or
sustained by Subtenant or its employees, agents, customers, licensees, invitees
or guests, or by any other person, from any causes whatsoever, or (ii) any loss
or damage or injury to any property in, on or about the Sublease Premises
belonging to Subtenant or its employees, agents, customers, licensees, invitees
or guests, or by any other person, except to the extent such injury or damage is
caused solely by the active negligence or willful misconduct of, or breach of
this Sublease by, Sublandlord.

 

(b)                                 Subtenant
shall hold Sublandlord harmless from, and defend and indemnify Sublandlord
against, any and all losses, damages, claims, liability, expense or costs
(including reasonable attorneys’ fees) arising out of, from, or in connection
with (i) Subtenant’s use or occupancy of the Sublease Premises (including, but
not limited to, any damage to any property or injury, illness or death of any person
occurring in, on, or about

 

12

 

the Sublease Premises, or
any part thereof, arising at any time and from any cause whatsoever) or (ii)
any breach or default by Subtenant under this Sublease, including the failure
of Subtenant to pay, perform, observe or comply with any liability, obligation,
covenant, condition or restriction imposed on Sublandlord under the Master
Lease which has been incorporated herein as a liability, obligation, covenant,
condition or restriction required to be paid, performed or observed by
Subtenant hereunder (including, but not limited to any liability to, or
indemnity obligation in favor of, Master Landlord either under the Master Lease
or at law or in equity), except to the extent such loss, damage, claim,
liability, expense or cost is caused solely by the active negligence or willful
misconduct of or breach of this Sublease by Sublandlord.

 

10.                                 Hazardous
Materials.

 

(a)                                  Subtenant
shall not, and Subtenant shall not permit any of its employees, agents,
customers, licensees, invitees or guests, or any other person to, manage,
handle, store or use in any way in, on or about the Sublease Premises or the
Building any Toxic or Hazardous Materials (including but not limited to any
petroleum products and radioactive materials) of any kind whatsoever (excluding
reasonable amounts of customary office supplies and those Toxic or Hazardous
Materials described on Exhibit B attached hereto).  For purposes of this Section 10, “Toxic
or Hazardous Materials” shall mean any product, substance, chemical, material
or waste whose presence, nature, quality and/or intensity or existence, use,
manufacture, disposal, transportation, spill, release or effect, either by
itself or in combination with other materials expected to be in the Sublease
Premises or Building is either (i) potentially injurious to public health,
safety or welfare, the environment or the Sublease Premises or Building; or
(ii) regulated or monitored by any governmental authority.

 

(b)                                 Subtenant
shall, at its sole cost and reasonable expense, on or before the Sublease
Commencement Date and on or about the end of the Sublease Term, as the same may
be extended, hire a qualified environmental consultant, reasonably acceptable
to Sublandlord, to determine whether, on each such date, the Sublease Premises
are in compliance with all Environmental Laws (the “Initial Report” and “Final
Report”, respectively).  Subtenant shall
submit to Sublandlord a report from such environmental consultant which discusses
the environmental consultant’s findings. 
Subtenant shall at the end of the Sublease Term, as the same may be
extended, surrender the Sublease Premises to Sublandlord, with all fume hoods
closed in compliance with Environmental Laws. 
Subtenant shall surrender the Sublease Premises to Sublandlord at the
end of the Sublease Term, as the same may be extended, in condition such that
all Hazardous Materials existing in the Sublease Premises (or the surrounding
property) shown in the Final Report, but not shown in the Initial Report have
been cleaned-up and remediated in accordance with all Environmental Laws.  Subtenant shall be solely responsible for
all investigation and clean up of any Hazardous Materials which came to be
located on the Premises (or surrounding property) due to the acts or omissions
of Subtenant or Subtenant’s employees, agents, customers, assignees,
sub-subtenants, contractors, licensees, invitees or guests.

 

13

 

(c)                                  As
contemplated by Article 43 of the Master Lease, Subtenant shall, on the
anniversary of the commencement of the Master Lease Term, hire a qualified
environmental consultant reasonably acceptable to Sublandlord and Master
Landlord to determine whether Subtenant is in compliance with all Governmental
Regulations (as defined in the Master Lease) pertaining to Hazardous Materials
(as defined in the Master Lease). 
Subtenant shall submit to Master Landlord and to Sublandlord a report
from such environmental consultant which discusses the environmental
consultant’s findings within two (2) months of each Anniversary Date (as
defined in the Master Lease) (the “Annual Environmental Report”).  Subtenant shall promptly take all steps
necessary to correct any and all problems identified by the environmental
consultant and provide Master Landlord and Sublandlord with documentation of
all such corrections.  Sublandlord shall
reimburse Subtenant for the actual reasonable costs Subtenant pays to such qualified
environmental consultant for preparing the Annual Environmental Report, provided
that in no event shall Sublandlord be required to reimburse Subtenant in
excess of Three Thousand Dollars ($3,000) per year for such costs.  Subtenant shall provide Sublandlord with a
written invoice evidencing such costs.

 

(d)                                 Subtenant
shall, at Subtenant’s sole cost and expense, and with counsel reasonably
acceptable to Sublandlord, indemnify, defend and hold harmless Sublandlord and
Sublandlord’s shareholders, directors, officers, employees, partners, members,
affiliates, agents, successors and assigns with respect to all losses arising
out of or resulting from the release of any Toxic or Hazardous Materials in or
about the Sublease Premises or Building, or the violation of any Environmental
Law (as defined below), by Subtenant or Subtenant’s employees, agents,
customers, assignees, sub-subtenants, contractors, licensees, invitees or
guests.

 

(e)                                  Sublandlord
shall, at Sublandlord’s sole cost and expense, and with counsel reasonably
acceptable to Subtenant indemnify, defend and hold harmless Subtenant and
Subtenant’s shareholders, directors, officers, employees, partners, members,
affiliates, agents, successors and assigns with respect to all losses arising
out of or resulting from the release of any Toxic or Hazardous Materials in or
about the Sublease Premises or Building, or the violation of any Environmental
Law (as defined below), by Sublandlord or Sublandlord’s employees, agents,
customers, contractors, licensees, invitees or guests.

 

For purposes of this Section 10, Environmental
Laws include any federal, state or local law, regulation, ordinance or
requirement (including consent decrees and administrative orders) imposing
liability or standard of conduct concerning any Toxic or Hazardous Materials,
including without limitation, Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (CERCLA) (42 United States Code
sections 9601-9675) and Resource Conservation and Recovery Act of 1976 (RCRA)
(42 United States Code section 6901-6992k).  The provisions of this Paragraph 10 shall survive the expiration
or earlier termination of this Sublease.

 

14

 

11.                                 Notices.  Subtenant hereby designates the party set
forth below as the sole representative of Subtenant authorized to give and
receive all notices and other communications on behalf of Subtenant under this
Sublease.  All notices, demands,
statements and other communications that may or are required to be given by
either party to the other hereunder shall be in writing and shall be (i)
personally delivered to the address or addressee provided herein or sent via
facsimile to the fax number provided below, or (ii) sent by first class United
States mail, postage prepaid, or (iii) delivered by a reputable messenger or
overnight courier service and, in any case, addressed as follows:

 

	
  If to Sublandlord:

  	
   

  	
  Abgenix, Inc.

  
	
   

  	
   

  	
  6701 Kaiser Drive

  
	
   

  	
   

  	
  Fremont, CA 94555

  
	
   

  	
   

  	
  Attn: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Abgenix, Inc.

  
	
   

  	
   

  	
  6701 Kaiser Drive

  
	
   

  	
   

  	
  Fremont, CA 94555

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
  If to Subtenant:

  	
   

  	
  Protein Design Labs, Inc.

  
	
   

  	
   

  	
  34801 Campus Drive

  
	
   

  	
   

  	
  Fremont, CA 94555

  
	
   

  	
   

  	
  Attn: General Counsel

  

 

Notices shall be deemed to have been fully given upon
actual delivery thereof to the address or addressee provided above or, if
delivery thereof is refused, then upon such refusal to accept delivery
(provided that there is reasonable evidence of such refusal).  Either party shall have the right upon ten
(10) days prior notice to the other to change its address for notice as
provided above.

 

12.                                 If Master Landlord and
Sublandlord jointly and voluntarily elect, for any reason whatsoever, to
terminate the Master Lease prior to the scheduled Master Lease termination
date, then this Sublease (if then still in effect) shall terminate concurrently
with the termination of the Master Lease. 
Subtenant expressly acknowledges and agrees that (1) the voluntary
termination of the Master Lease by Master Landlord and Sublandlord and the
resulting termination of the Sublease shall not give Subtenant any right or
power to make any legal or equitable claim against Master Landlord, including
without limitation, any claim for interference with contract or interference
with prospective economic advantage, and (2) Subtenant hereby waives any and
all rights it may have under law or at equity against Landlord to challenge
such an early termination of the Sublease and unconditionally releases and
relieves Master Landlord, and its officers, directors, employees and agents from
any and all claims, demands, and/or causes or action whatsoever (collectively,
“Claims”), whether such matters are known or unknown, latent or apparent,
suspected or unsuspected, foreseeable or unforeseeable,

 

15

 

which Subtenant may have arising out of or in connection
with any such early termination of this Sublease.  Subtenant knowingly and intentionally waives any and all
protection which is or may be given by Section 1542 of the California
Civil Code which provides, as follows: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with debtor”.

 

The term of
the Sublease is therefore subject to early termination, Subtenant’s initials
below evidence (a) Subtenant’s consideration of and agreement to this early
termination provision, (b) Subtenant’s acknowledgment that, in determining the
net benefits to be derived by Subtenant under the terms of his Sublease,
Subtenant has anticipated the potential for early termination, and (c)
Subtenant’s agreement to the general waiver and release of Claims set forth
above.

 

	
   

  	
  Initials:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Sublandlord

  	
  Subtenant

  

 

13.                                 Personal Property.

 

(a)                                  Subtenant
shall have the use of Sublandlord’s existing cubicles and the furniture set
forth on Exhibit C attached hereto (the “Personal Property”) for
the Sublease Term at no additional cost to Subtenant.  After Subtenant has had an opportunity to inventory the Personal
Property actually located at the Sublease Premises, compare the same with
Exhibit C, and determine which Personal Property items Subtenant desires to
use, but in no event later than sixty (60) days following the Sublease
Commencement Date, Subtenant shall prepare a revised Exhibit C, subject to
timely approval by Sublandlord, Exhibit C, as so revised, shall be substituted
for Exhibit C initially attached hereto. 
Subtenant and Sublandlord shall cooperate, to remove from the Sublease
Premises any items which were listed in the initial Exhibit C, but deleted from
the revised Exhibit C.  Sublandlord
shall assume control over and responsibility for such items and such items shall
be omitted from the definition of Personal Property used hereunder from and
after the date of removal of such items. 
Subject to the foregoing sentence, the Personal Property shall remain in
the Sublease Premises at all times, provided that Subtenant may store the same
off-site with Sublandlord’s prior written consent.  Subtenant has not relied upon or been induced by any statements
or representations of any person with respect to the physical condition of the
Personal Property or with respect to any matter affecting the Personal Property
that might be pertinent in considering the use of the Personal Property.  Subtenant has relied solely on such
examinations and inspections as Subtenant has chosen to make or have made on
its behalf.  Subtenant acknowledged that
it has been afforded the opportunity for full and complete examinations and
inspections and upon taking possession of the Personal Property, Subtenant
shall be deemed to have accepted the Personal Property in its “as-is”
condition.  Upon termination of the
Sublease, all of the Personal Property shall remain on or be returned to the
Sublease Premises in the same condition that such Personal Property was in as
of the Sublease Commencement Date, normal wear and tear excepted.

 

16

 

(b)                                 Prior to the end of the
Sublease Term, Subtenant shall repair any damage to the Personal Property
resulting from causes other than ordinary wear and tear.  Subtenant assumes and shall bear all
risk of loss of and damage to the Personal Property from any and every cause
whatsoever (whether insured or uninsured, except ordinary wear and tear), and,
except as otherwise provided herein, shall be obligated to repair or replace
any Personal Property so damaged.  In
the event any Personal Property is damaged by either an insured or uninsured
cause to the extent that it is not commercially reasonable to repair the same
(taking into consideration both the useful life of the respective item of
Personal Property and the then remaining term of this Sublease), Sublandlord
and Subtenant shall discuss the same and reasonably agree upon the removal and
disposal of such items of Personal Property, but no such removal or disposal
shall result in any reduction of the Subtenant’s Rent payable under this
Sublease, and Subtenant shall be responsible for paying to Sublandlord the
reasonable value of any such item to be so disposed (determined as of the date
immediately preceding the occurrence of such damage), reduced by any salvage
value realized by Sublandlord from the disposal of the same.

 

14.                                 Alterations.  Notwithstanding anything to the contrary
contained in the Master Lease, Subtenant shall not make any alterations,
improvements or installations (collectively, “Subtenant Alterations”) in or to
the Sublease Premises without the prior written consent of Sublandlord and
Master Landlord. Sublandlord, at its sole option, may, however, require as a
condition to the granting of any such consent, that Subtenant provide to
Sublandlord, at Subtenant’s sole cost and expense, a lien and completion bond
in an amount equal to one and one-half (11⁄2) times any and all estimated costs
of any Subtenant Alterations, to insure Sublandlord against any liability for
mechanics’ and materialmen’s liens and to insure completion of the work;
provided, however, that if Subtenant is required and provides such bond under
Article 7 of the Mater Lease, then no bond shall be required under this
Paragraph 14.  Subtenant shall give
Sublandlord written notice of Subtenant’s intention to perform any work on the
Sublease Premises at least twenty (20) days prior to the commencement of such
work to enable Sublandlord to post and record an appropriate Notice of
Nonresponsibility or other notice deemed proper before the commencement of any
such work.  All Subtenant Alterations
shall be subject to the terms and conditions of the Master Lease, including
without limitation, the obligation to remove such Subtenant Alterations at the
end of the Sublease Term and restore the Sublease Premises to its original
condition if so required by Sublandlord or Master Landlord.  All Subtenant Alterations shall be performed
by a contractor approved by Sublandlord and Master Landlord.

 

15.                                 Brokers.  Subtenant and Sublandlord respectively
warrant and represent to each other that it has dealt with no leasing agent or
broker in connection with this Sublease except for Cresa Partners and Cornish
and Carey Commercial (“Broker”). 
Subtenant and Sublandlord each agree to indemnify, defend and hold the
other party harmless from and against any claims arising out of a breach of the
foregoing

 

17

 

representation and
warranty.  Sublandlord agrees that it
shall be responsible for paying a commission to the Broker in accordance with a
separate agreement.

 

16.                                 Assignment
and Subletting

 

(a)                                  The
terms of Article 16 of the Master Lease are incorporated herein by
reference with regard to further transfers or assignments of this Sublease or
subletting of any portion of the Sublease Premises by Subtenant; provided,
however, that Subtenant shall pay to Sublandlord, as Subtenant’s Additional
Rent, fifty percent (50%) of any Excess Rent (as defined in the Master Lease)
received by Subtenant from any transfer, assignment or sublease consented to by
Sublandlord and Master Landlord, after Master Landlord has recovered any Excess
Rent to which it may be entitled pursuant to the provisions of Article 16
of the Maser Lease.

 

(b)                                 No
transfer, assignment, or sublease by Subtenant, nor the consent of the
Sublandlord  thereto, shall relieve
Subtenant from its obligations hereunder, and consent of Sublandlord  to any assignment or subletting, shall not
be deemed to constitute consent to any subsequent transfer, assignment or
subletting.

 

17.                                 Intentionally
Omitted.

 

18.                                 Financial
Statements.  Subtenant
represents, warrants and covenants that any financial statements heretofore or
hereafter furnished to Sublandlord, in connection with this Sublease, are
accurate and are not materially misleading. 
At any time (but not more frequently than once each twelve months during
the Sublease Term), Subtenant shall, upon ten (10) days prior written notice,
provide Sublandlord with a current quarterly financial statement and the last
annual statement, which are to have been prepared in accordance with generally
accepted accounting principles and, if such is Subtenant’s normal practice and
the audit has been completed, the annual statement as so audited and as
publicly filed.

 

19.                                 Miscellaneous.

 

(a)                                  The
parties agree that during the Sublease Term Subtenant shall have the use of the
emergency generator located on the Property. 
Subtenant shall be responsible, at it’s cost and expense, for
maintaining all permits necessary for the maintenance and operation of such
emergency generator.

 

(b)                                 This
Sublease may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one instrument.

 

(c)                                  This
Sublease cannot be changed or terminated orally.  All informal understandings and agreements heretofore made
between the parties are merged in this Sublease, which alone fully and
completely expresses the agreement between Sublandlord and Subtenant as to the
subleasing of the Sublease Premises.

 

18

 

(d)                                 Each
and every indemnification obligation set forth in this Sublease, or
incorporated into this Sublease from the Master Lease, shall survive the
expiration or earlier termination of the term of this Sublease.

 

(e)                                  If,
for any reason, any suit be initiated between Sublandlord and Subtenant to
enforce any provision of this Sublease, the prevailing party shall be entitled
to legal costs, expert witness expenses, and reasonable attorneys’ fees, as
fixed by the court.

 

(f)                                    This
Sublease shall not become effective and shall not be deemed to be an offer to
sublease or create any rights or obligations between Subtenant or Sublandlord
unless and until Sublandlord and Subtenant have executed and delivered the
same, and Master Landlord has executed and delivered a consent to this Sublease
in a form reasonably acceptable to Sublandlord and Subtenant, or shall
otherwise have been deemed to have granted its consent to this Sublease
pursuant to the provisions of the Master Lease.  If no such consent to this Sublease is given or deemed given by Master
Landlord within thirty (30) days after the delivery of a copy of the fully
executed Sublease to Master Landlord, then either Sublandlord or Subtenant
shall have the right, by written notice to the other, to terminate this
Sublease at any time prior to such consent from Master Landlord being given or
deemed given.  By delivering this
Sublease, each party hereby represents and warrants to the other that such
execution and delivery has been duly authorized by all necessary corporate or
partnership action and that the person(s) executing same have been duly
authorized to do so.

 

(g)                                 Subject
to the restrictions on assignment set forth in this Sublease, this Sublease
shall be binding on and shall inure to the benefit of the parties hereto and
their respective successors and assigns.

 

(h)                                 The
parties mutually acknowledge that this Sublease has been negotiated at arm’s
length.  The provisions of this Sublease
shall be deemed to have been drafted by all of the parties and this Sublease
shall not be interpreted or constructed against any party solely by virtue of
the fact that such party or its counsel was responsible for its preparation.

 

19

 

IN WITNESS WHEREOF, the
parties have executed this Sublease as of the date set forth above.

 

	
  SUBLANDLORD:

  	
  ABGENIX, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBTENANT:

  	
  PROTEIN DESIGN LABS, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
								

 

20

 

EXHIBIT A

 

MASTER LEASE AGREEMENT

 

THIS LEASE, made this 22nd day of January, 2002
between JOHN ARRILLAGA, Trustee, or his Successor Trustee, UTA dated 7/20/77
(JOHN ARRILLAGA SURVIVOR’S TRUST) as amended, and RICHARD T. PEERY, Trustee, or
his Successor Trustee, UTA dated 7/20/77 (RICHARD T. PEERY SEPARATE PROPERTY
TRUST) as amended, hereinafter called Landlord, and ABGENIX, INC., a Delaware
corporation, hereinafter called Tenant.

 

WITNESSETH:

 

Landlord hereby leases to Tenant and Tenant hereby
hires and takes from Landlord those certain premises (the “Premises”) outlined
in red on Exhibit ”A”, attached hereto and incorporated herein by this
reference thereto more particularly described as follows:

 

All of that certain 50,688+ square foot,
one-story building located at 34700 Campus Drive, Fremont, California
94555. Said Premises is more particularly shown within the area outlined in Red
on Exhibit A attached hereto. The
Premises shall include the entire parcel, of which the Building is a part,
including exclusive parking appurtenant thereto, as shown within the area
outlined in Green on Exhibit A
attached. The Premises is leased on an “as is” basis, in its present condition,
and in the configuration as shown in Red on Exhibit
B to be attached hereto.

 

The word “Premises” as used throughout this lease is
hereby defined to include the nonexclusive use of landscaped areas, sidewalks
and driveways in front of or adjacent to the Premises, and the nonexclusive use
of the area directly underneath or over such sidewalks and driveways. The gross
leasable area of the building shall be measured from outside of exterior walls
to outside of exterior walls, and shall include any atriums, covered entrances
or egresses and covered building loading areas.

 

Said letting and hiring is upon and subject to the
terms, covenants and conditions hereinafter set forth and Tenant covenants as a
material part of the consideration for the Lease to perform and observe each
and all of said terms, covenants and conditions. This Lease is made upon the
conditions of such performance and observance.

 

1.      USE  Tenant shall use the Premises only
in conformance with applicable governmental laws, regulations, rules and
ordinances for the purpose of general office, light manufacturing, research and
development (including biotechnological research and associated animal
research) and storage and other uses as may be necessary or appropriate for
Tenant to conduct Tenant’s business, provided that such uses shall be in
accordance with all applicable governmental laws and ordinances, and for no
other purpose without Landlord’s prior written consent. Tenant shall not do or
permit to be done in or about the Premises nor bring or keep or permit to be
brought or kept in or about the Premises anything which is prohibited by or
will in any way increase the existing rate of (or otherwise affect) fire or any
insurance covering the Premises or any part thereof, or any of its contents, or
will cause a cancellation of any insurance covering the Premises or any part
thereof, or any of its contents. Tenant shall not do or permit to be done
anything in, on or about the Premises which will in any way obstruct or
interfere with the rights of other tenants or occupants of the Premises or
neighboring premises or injure or annoy them, or use or allow the Premises to
be used for any improper, immoral, unlawful or objectionable purpose, nor shall
Tenant cause, maintain or permit any nuisance in, on or about the Premises. No
sale by auction shall be permitted on the Premises. Tenant shall not place any
loads upon

 

1

 

the floors, walls or
ceiling which endanger the structure, or place any harmful fluids or other
materials in the drainage system of the building, or overload existing
electrical or other mechanical systems. No waste materials or refuse shall be
dumped upon or permitted to remain upon any part of the Premises or outside of
the building in which the Premises are a part, except in trash containers
placed inside exterior enclosures designated by Landlord for that purpose or
inside of the building proper where designated by Landlord. No materials,
supplies, equipment, finished products or semi-finished products, raw materials
or articles of any nature shall be stored upon or permitted to remain outside
the Premises. Tenant shall not place anything or allow anything to be placed
near the glass of any window, door partition or wall which may appear unsightly
from outside the Premises. No loudspeaker or other device, system or apparatus
which can be heard outside the Premises shall be used in or at the Premises
without the prior written consent of Landlord. Tenant shall not commit or
suffer to be committed any waste in or upon the Premises. Tenant shall
indemnify, defend and hold Landlord harmless against any loss, expense, damage,
reasonable attorneys’ fees, or liability arising out of failure of Tenant to
comply with any applicable law relating to Tenant’s use of the Premises or for
which Tenant is otherwise obligated to comply under the terms of this Lease.
Tenant shall comply with any covenant, condition, or restriction (“CC&R’s”)
affecting the Premises. The provisions of this paragraph are for the benefit of
Landlord only and shall not be construed to be for the benefit of any tenant or
occupant of the Premises.

 

2.      TERM*

 

A.  The term of this Lease shall be for a
period of TWELVE (12) years TWO (2) months (unless sooner terminated as
hereinafter provided) and, subject to Paragraphs 2B and 3, shall commence on
the 1st day of May, 2002 and end on the 30th day of June, 2014.

 

B.  Possession of the Premises shall be
deemed tendered and the term of the Lease shall commence on May 1, 2002,
or

 

(d)                                 As otherwise agreed in writing.

 

3.      POSSESSION  If Landlord, for any reason
whatsoever, cannot deliver possession of said premises to Tenant at the
commencement of the said term, as hereinbefore specified, this Lease shall not
be void or voidable; no obligation of Tenant shall be affected thereby; nor
shall Landlord or Landlord’s agents be liable to Tenant for any loss or damage
resulting therefrom; but in that event the commencement and termination dates
of the Lease, and all other dates affected thereby shall be revised to conform
to the date of Landlord’s delivery of possession, as specified in Paragraph 2B,
above. The above is, however, subject to the provision that the period of delay
of delivery of the Premises shall not exceed 60 days from the commencement date
hereof (except those delays caused by Acts of God, strikes, war, utilities,
governmental bodies, weather, unavailable materials, and delays beyond
Landlord’s control shall be excluded in calculating such period) in which
instance Tenant, at its option, may, by written notice to Landlord, terminate
this Lease.

4.      RENT

 

A.  Basic
Rent. Tenant agrees to pay to Landlord at such place as Landlord may
designate without deduction, offset, prior notice, or demand, and Landlord
agrees to accept as Basic Rent for the leased Premises the total sum of
FOURTEEN MILLION FOUR HUNDRED THOUSAND FOUR HUNDRED SIXTY AND 80/100 Dollars
($14,400,460.80) in lawful money of the United States of America, payable as
follows:

 

See Paragraph 39 for Basic Rent Schedule

 

*              It is agreed in the event said
Lease commences on a date other than the first day of the month the term of the
Lease will be extended to account for the number of days in the partial month.
The Basic Rent during the resulting partial month will be pro-rated (for the
number of days in the partial month) at the Basic Rent rate scheduled for the
projected commencement date as shown in Paragraph 39.

 

2

 

B.    Time
for Payment.    Full monthly rent is due in
advance on the first day of each calendar month. In the event that the term of
this Lease commences on a date other than the first day of a calendar month, on
the date of commencement of the term hereof Tenant shall pay to Landlord as
rent for the period from such date of commencement to the first day of the next
succeeding calendar month that proportion of the monthly rent hereunder which
the number of days between such date of commencement and the first day of the
next succeeding calendar month bears to thirty (30). In the event that the term
of this Lease for any reason ends on a date other than the last day of a
calendar month, on the first day of the last calendar month of the term hereof
Tenant shall pay to Landlord as rent for the period from said first day of said
last calendar month to and including the last day of the term hereof that
proportion of the monthly rent hereunder which the number of days between said
first day of said last calendar month and the last day of the term hereof bears
to thirty (30).

 

C.    Late
Charge.    Notwithstanding any other provision
of this Lease, if Tenant is in default in the payment of rental as set forth in
this Paragraph 4 when due, or any part thereof, Tenant agrees to pay
Landlord, in addition to the delinquent rental due, a late charge for each
rental payment in default ten (10) days. Said late charge shall equal ten
percent (10%) of each rental payment so in default.

 

D.    Additional
Rent.    Beginning with the commencement date of
the term of this Lease, Tenant shall pay to Landlord or to Landlord’s
designated agent in addition to the Basic Rent and as Additional Rent the
following:

 

(a)                                  All Taxes relating to the Premises as set
forth in Paragraph 9, and

 

(b)                                 All insurance premiums and deductibles
relating to the Premises, as set forth in Paragraph 12, and

 

(c)                                  All charges, costs and expenses, which Tenant
is required to pay hereunder, together with all interest and penalties, costs
and expenses including reasonable attorneys’ fees and legal expenses, that may
accrue thereto in the event of Tenant’s failure to pay such amounts, and all
damages, reasonable costs and expenses which Landlord may incur by reason of
default of Tenant or failure on Tenant’s part to comply with the terms of this
Lease. In the event of nonpayment by Tenant of Additional Rent, Landlord shall
have all the rights and remedies with respect thereto as Landlord has for
nonpayment of rent, and

 

(d)                                 all prorated costs and expenses related to the
Ardenwood Property Owners’ Association as set forth in Paragraph 44.

 

The Additional Rent due hereunder shall be paid to Landlord
or Landlord’s agent (i) within five business days for taxes and insurance
and within thirty days for all other Additional Rent items after presentation
of invoice from Landlord or Landlord’s agent setting forth such Additional Rent
and/or (ii) at the option of Landlord, Tenant shall pay to Landlord
monthly, in advance, Tenant’s prorata share of an amount estimated by Landlord
to be Landlord’s approximate average monthly expenditure for such Additional
Rent items, which estimated amount shall be reconciled within 120 days of the
end of each calendar year or more frequently if Landlord elects to do so at
Landlord’s sole and absolute discretion as compared to Landlord’s actual
expenditure for said Additional Rent items, with Tenant paying to Landlord, upon
demand, any amount of actual expenses expended by Landlord in excess of said
estimated amount, or Landlord crediting to Tenant (providing Tenant is not in
default in the performance of any of the terms, covenants and conditions of
this Lease) any amount of estimated payments made by Tenant in excess of
Landlord’s actual expenditures for said Additional Rent items. Within thirty
(30) days after receipt of Landlord’s reconciliation, Tenant shall have the
right, at Tenant’s sole expense, to audit, at a mutually convenient time at
Landlord’s office, Landlord’s records relating to the foregoing expenses. Such
audit must be conducted by Tenant or an independent nationally recognized
accounting firm that is not being compensated by Tenant or other third party on
a

 

3

 

contingency
fee basis. If such audit reveals that Landlord has overcharged Tenant, the
amount overcharged shall be credited to Tenant’s account within thirty (30)
days after the audit is concluded.

 

E.    Fixed
Management Fee.    Beginning with the
Commencement Date of the Term of this Lease, Tenant shall pay to Landlord or
Landlord’s Assignee, in addition to the Basic Rent and Additional Rent, a fixed
monthly management fee (“Management Fee”) equal to one and one-half percent
(1.5%) of the Basic Rent due for each month during the Lease Term.

 

The respective obligations of Landlord and Tenant
under this paragraph shall survive the expiration or other termination of the
term of this Lease, and if the term hereof shall expire or shall otherwise
terminate on a day other than the last day of a calendar year, the actual
Additional Rent incurred for the calendar year in which the term hereof expires
or otherwise terminates shall be determined and settled on the basis of the
statement of actual Additional Rent for such calendar year and shall be
prorated in the proportion which the number of days in such calendar year
preceding such expiration or termination bears to 365.

 

F.    Place
of Payment of Rent and Additional Rent.    All
Basic Rent hereunder and all payments hereunder for Additional Rent shall be
paid to Landlord at the office of Landlord at PEERY/ARRILLAGA, FILE 1504, BOX
60000, SAN FRANCISCO, CA 94160 or to such other person or to such other place
as Landlord may from time to time designate in writing.

 

G.    Security
Deposit.    Concurrently with Tenant’s execution
of this Lease, Tenant shall deposit with Landlord the sum of ONE HUNDRED
TWENTY-EIGHT THOUSAND SEVEN HUNDRED FIFTY-ONE AND NO/100 Dollars ($128,571.00).
Said sum shall be held by Landlord as a Security Deposit for the faithful
performance by Tenant of all of the terms, covenants, and conditions of this
Lease to be kept and performed by Tenant during the term hereof. If Tenant
defaults with respect to any provision of this Lease, including, but not
limited to, the provisions relating to the payment of rent and any of the
monetary sums due herewith, Landlord may (but shall not be required to) use,
apply or retain all or any part of this Security Deposit for the payment of any
other amount which Landlord may spend by reason of Tenant’s default or to
compensate Landlord for any other loss or damage which Landlord may suffer by
reason of Tenant’s default. If any portion of said Deposit is so used or
applied, Tenant shall, within ten (10) days after written demand therefor,
deposit cash with Landlord in the amount sufficient to restore the Security
Deposit to its original amount. Tenant’s failure to do so shall be a material
breach of this Lease. Landlord shall not be required to keep this Security
Deposit separate from its general funds, and Tenant shall not be entitled to
interest on such Deposit. If Tenant fully and faithfully performs every
provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or at Landlord’s option, to the
last assignee of Tenant’s interest hereunder) at the expiration of the Lease
term and after Tenant has vacated the Premises. In the event of termination of
Landlord’s interest in this Lease, Landlord shall transfer said Deposit to
Landlord’s successor in interest whereupon Tenant agrees to release Landlord
from liability for the return of such Deposit or the accounting therefor.

 

5.    ACCEPTANCE
AND SURRENDER OF PREMISES    Be entry
hereunder Tenant accepts the Premises as being in good and sanitary order,
condition and repair and accepts the building and improvements included in the
Premises in their present condition and without representation or warranty by
Landlord as to the condition of such building or as to the use of occupancy
which may be made thereof. Any exceptions to the foregoing must be by written
agreement executed by Landlord and Tenant. Tenant agrees on the last day of the
Lease term or on the sooner termination of this Lease. To surrender the
Premises promptly and ocaceably to Landlord in good condition and repair
(damage by Acts of God, fire and other causes for which Tenant does not have
the obligation to repair under the other provisions of this Lease, and normal
wear and tear excepted), with all interior walls painted, or cleaned so that
they appear freshly painted, and repainted, and repaired or replaced, if
damaged; all floors cleaned and waved; all carpets cleaned and shampooed; all
broken, marred or nonconforming acoustical ceiling files replaced; all windows
washed; the air conditioning and heating systems serviced

 

4

 

by
a reputable and licensed service firm and in good operating condition and
repair; the plumbing and electrical systems and lighting in good order and
repair, including replacement of any burned out or ballast; the lawn and shrubs
in good condition including the replacement of any dead or damaged plantings;
the sidewalk, driveways and parking areas in good order, condition and repair;
together with all alterations, additions, and improvements which may have been
made in, to, or on the Premises (except moveable trade fixtures installed at
the expense of Tenant) except that Tenant shall ascertain from Landlord within
thirty (30) days before the end the term of this Lease whether Landlord desires
to have the Premises or any part or parts thereof restored to their condition
and configuration as when the Premises were delivered to Tenant and if Landlord
shall so desire, then Tenant shall restore said Premises or such part or parts
thereof before the end of this Lease at Tenant’s sole cost and expense.
Notwithstanding the above, Tenant shall not be required to remove such interior
improvements shown on Exhibit B to this Lease. Tenant on or before the end
of the term or sooner termination of this Lease, shall remove all of Tenant’s
personal property and trace fixtures from the Premises, and all property not so
removed on or before on or before the end of the term or sooner termination of
this Lease shall be deemed abandoned by Tenant and to same shall thereupon pass
to Landlord without compensation to Tenant. Landlord may, upon termination of
this Lease, remove all moveable furniture and equipment so abandoned by Tenant,
at Tenant’s sole cost, and repair any damage caused by such removal at Tenant’s
sole cost. If the Premises be not surrendered at the end of the term or sooner
termination of this Lease. Tenant shall indemnify Landlord against loss or
liability resulting from the delay by Tenant in so surrendering the Premises
including, without limitation, any claims made by any successful Tenant founded
on such delay. Nothing contained herein shall be construed as an extension of
the term hereof or as a consent of Landlord to any holding given by Tenant. The
voluntary or other surrender of this Lease or the Premises by Tenant or a
mutual cancellation of this Lease shall not work as a merger and. all the
option of Landlord, shall either terminate all or any existing subleases or
subleases or operate as an assignment to Landlord of all or any such subleases
or subtenancies.

 

6.    ALTERATIONS AND ADDITIONS    Tenant shall not make,
or suffer to be made, any alteration or addition to the Premises, or any part
thereof, without the written consent of Landlord first had and obtained by
Tenant (such consent not to be unreasonably withheld), but at the cost of the
Tenant, and any addition to or allocation of the Premises, except moveable
furniture and trade fixtures, shall at once become a part of the Premises and
upon Termination of this Lease belong to Landlord. Landlord reserves the right
to approve all contracts and mechanics proposed by Tenant to make such
alterations and additions which approval shall not be unreasonably withheld.
Tenant shall retain little to all moveable furniture and trade fixtures placed
in the Premises. All heating, lighting, electrical, air conditioning, floor to
ceiling partitioning, drapery, carpeting, and floor installations made by
Tenant, together with a property that has become an integral part of the
Premises, shall not be deemed trade failure. Tenant agrees that it will not
proceed to make such alteration or additions, without having obtained consent
from Landlord to do so, and until five (5) days from the receipt of such
consent. In order that Landlord may post appropriate notices to avoid any
liability to contracts or materials suppliers for payment for Tenant’s
improvements. Tenant will at all times permit such notices to be posted and to
remain posted until the completion of work, Tenant shall, if required by
Landlord, secure at Tenant’s own cost and expense, a completion and man
indemnity band, satisfactory to Landlord, for such work. Tenant further
covenants and agrees that any mechanic’s lien filed against the Premises for
work claimed to have been done for, or materials claimed to have been furnished
to Tenant, will be discharged by Tenant, by band or otherwise, within ten (10)
days after notice of the filing thereof, at the cost and expense of Tenant. Any
excepting to the foregoing must be made in writing and executed by both
Landlord and Tenant.

 

7.    TENANT MAINTENANCE    Subject to the
provisions of Paragraph 21, Tenant shall, at its sole cost and expense, keep
and maintain the Premises (including appurtenances) and every part thereof in
a-high standard of maintenance and repair, or replacement,an in good and
sanitary condition. Tenant’s maintenance and repair responsibilities herein
referred to include, but are not limited to, amortization,

 

5

 

all
windows (interior and exterior), window frames, plate glass and glazing
(destroyed by accident or act of third parties), truck doors, plumbing systems
(such as water and drain lines, sinks, toilets, faucets, drains, showers and
water fountains), electrical systems (such as panels, conduits, outlets,
lighting fixtures, lamps, bulbs, tubes, and ballasts), heating and air
conditioning systems (such as compressors, fans, air handlers, ducts, mixing
boxes, thermostats, time clocks, boilers, heaters, supply and return grills),
structural elements and exterior surfaces of the building, store fronts, roofs,
downspouts, all interior improvements within the premises including but not
limited to wall coverings, window coverings, carpet, floor coverings,
partitioning, ceilings, doors (both interior and exterior), including closing
mechanisms, latches, locks, skylights (if any), automatic fire extinguishing
systems, and elevators and all other interior improvements of any nature
whatsoever, and all exterior improvements including but not limited to
landscaping, sidewalks, driveways, parking lots including striping and seating,
sprinkler systems, lighting, ponds, fountains, waterways, and drains. Tenant
agrees to provide carpet shields under all rolling chairs or to otherwise be
responsible for wear and tear of the carpet caused by such rolling chairs if
such wear and tear excess that caused by normal tool traffic in surrounding
areas. Areas of excessive wear shall be replaced all Tenant’s sole expense upon
Lease termination. Tenant hereby waives all rights under, and benefits of,
Subsection 1 of Section 1932 and Section 1341 and 1942 of the
California Civil Code and under any similarities law, statute or ordinance now
or hereafter in effect. In the event any of the above maintenance
responsibilities apply to any other tenant(s) of Landlord where there is common
usage with other tenant(s), such maintenance responsibilities and charges shall
be allocated to the leased Premises by square footage or other equitable and
determined by Landlord.

 

8.    UTILITIES    Tenant shall pay
promptly, as the same become due, all charged for water, gas, electricity,
telephone, telex and other electronic communication service, sewer service,
waste pick-up and any other Utilities, materials or services furnished directly
to or used by Tenant or about the Premises during the term of this Lease,
including, without limitation, any temporary or permanent utility surcharge or
other exactinos whether or not hereinafter imposed. In the event the above
charges apply in any other tenant(s) of Landlord where there is common usage
with other tenant(s), such charges shall be allocated to the leased Premises by
square footage or other equitable basis as calculated and determined by
Landlord.

 

Landlord shall not be liable for and Tenant shall not
be entitled to any abatement or reduction of rent by reason of any interruption
or failure of utility services in the Premises when such interruption or
failure is caused by accident, breakage, repair, strikes, lockouts, or other
labor disturbances or labor disputes of any nature, or by any other cause,
similar or dissimilar, beyond the reasonable control of Landlord.

 

9.    TAXES

 

A.    As Additions Rent and in
accordance with Paragraph 4D of this Lease, Tenant shall pay to Landlord, or if
Landlord so directs, directly to the Tax Collector, all Real Property Taxes
relating to the Premises accruing with respect to the Premises during the Term
of this Lease. In the event the Premises leased hereunder consists of only a
portion of the entire tax parcel, Tenant shall pay to Landlord as they become
due Tenant’s proportionate share of such real estate taxes allocated to the
leased Premises by square footage or other reasonable basis as calculated and
determined by Landlord, if the tax billing partains 100% to the leased
Premises, and Landlord chooses to have Tenant pay said real estate taxes
directly to the Tax Collector, then in such event it shall be the
responsibility of Tenant to obtain the tax and assessment bills and pay, prior
to delinquency, the applicable real property taxes and assessments pertaining
to the leased Premises, and failure to receive a bill for taxes and/or
assessments shall not provide a basis for cancellation of or nonresponsibility
for payment of penalties for nonpayment or late payment by Tenant. The term
“Real Property Taxes”, as used herein, shall mean (i) all taxes, assessments,
levies and other charges of any kind or nature whatsoever, general and special,
foreseen and unforeseen (including all installations of principal and interest
required to pay any general special assessments for public improvements and any
increases resulting from reassessments

 

6

 

caused
by any change in ownership of the Premises) now or hereafter imposed by any
governmental or quasi-governmental authority or special district having the
direct or indirect power to tax or levy assessments, which are levied or
assessed against, or with respect to the value, occupancy or use of, all or any
portion of the Premises (as now constructed or as may at any time hereafter be
constructed, altered, or otherwise changed) or Landlord’s interest therein; any
improvements located within the Premises (regardless of ownership); the
failures, equipment and other property of Landlord, neat or personal, that are
an integral part if located in the Premises; or parking areas, public
utilities, or energy within the Premises; (ii) all charges, levies or fees
imposed by reason of environmental regulation or other governmental control of
the Premises, excluding any taxes related to on-site Hazardous Materials
contamination which Tenant did not cause or contribute to; and (iii) all costs
and fees (including reasonable attorneys’ fees) incurred by Landlord in
reasonably contesting any Real Property Tax and in negotiating with public
authorities as to any Real Property Tax, if at any time during the term of this
Lease the taxation or assessment of the Premises prevailing as of the
commencement date of this Lease shall be altered so that in lieu of or in
addition to any Real Property Tax described above there shall be levied,
assessed or imposed (whether by reason or change in the method of taxation or
assessment, creation of a new tax exchange, or any other cause) an alternate or
additional tax or charge (i) on the value, use or occupancy of the Premises of
Landlord’s interest therein or (ii) on or measured by the gross receipts,
income or rentals from the Premises, on Landlord’s business of leasing the
Premises, or computed in any manner with respect to the Premises, then any such
tax or charge, however designatee shall be included within the meaning of the
term “Real Property Taxes” for purposes of this Lease, if any Real Property Tax
is based upon property or rents unrelated to the Premises, then only that part
of such Real Property Tax that is fairly allocable to the Premises shall be
included within the meaning of the term “Real Property Taxes”. Notwithstanding
the foregoing, the term “Real Property Taxes” shall not include estate,
inheritance, gift or franchise fares of Landlord or the federal or state net
income tax imposed on Landlord’s income from all sources or other personal
taxes measured by the net income (as distinguished from gross income) of
Landlord from the leasing of the Premises either separately or together with
other property. SEE PARAGRAPH 46

 

B.    Taxes on Tenant’s Property    Tenant
shall be liable for and shall pay ten days before delinquency, taxes levied
against any personal property or trade fixtures placed by Tenant in or about
the Premises. If any such taxes on Tenant’s personal property or trade fixtures
are levied against Landlord or Landlord’s property or if the assessed value of
the Premises is increased by the inclusion therein of a value placed upon
personal property or trade fixtures Tenant and if Landlord, after written
notice to Tenant, pays the taxes based on such increased assessment, which Landlord
shall have the right to do regardless of the validity thereof, but only under
proper protest if requested by Tenant, Tenant shall within ten (10) days after
demand, as the case may be, repay to Landlord the taxes so levied against
Landlord, or the proportion of such taxes resulting from such increase in the
assessment; provided that in any such event Tenant shall have the right. In the
name of Landlord and with Landlord’s full cooperation, to bring suit in any
court of competent jurisdiction to recover the amount of such taxes so paid
under protest, and any amount so recovered shall belong to Tenant.

 

10.    LIABILITY INSURANCE    Tenant, at Tenant’s
expense, agrees to keep in force during the term of this Lease’s policy of
commercial general liability insurance with combined single limit coverage of
not less than Two Million Dollars ($2,000,000), per occurrence for bodily
injury and property damage occurring in, on or about the Premises, including
parking and landscaped areas. Such insurance shall be primary and
noncontributary as respects any insurance carried by Landlord. The policy or
policies effecting such insurance shall name Landlord as additional insureds,
and shall insure any liability of Landlord, contingent or otherwise; as
respects acts or omission of Tenant. Its agents, employees or invitees or
otherwise by any conduct or transactions of any of said persons in or about or
concerning the Premises including any failure of Tenant to observe or perform
any of its obligations hereunder; shall be issued by an insurance company
admitted to transact business in the State of California; and shall provide
that the insurance effected thereby shall not be canceled, except upon thirty
(30) days

 

7

 

prior
written notice to Landlord. A certificate of insurance said policy shall be
delivered to Landlord. If, during the term of this Lease, in the considered
opinion of Landlord’s Lender, Insurance advisor, or counsel, the amount of
Insurance described in this Paragraph 10 is not adequate, Tenant agrees to
increase said coverage to such reasonable amount as Landlord’s Lender,
insurance advisor, or counsel shall deem adequate.

 

11.    TENANT’S PERSONAL PROPERTY
INSURANCE AND WORKMAN’S COMPENSATION INSURANCE    Tenant shall maintain
a policy or policies of fire and property damage insurance in “all risk” form
with a sprinkler leakage endorsement ensuring the personal property, inventory,
trade fixtures, and leasehold improvements within the leased Premises for the full
replacement value thereof. The proceeds from any of such policies shall be used
for the repair or replacement of such items so insured.

 

Tenant shall also maintain a policy or policies of
workman’s compensation insurance and any other employee benefit insurance
sufficient to comply with all laws.

 

12.    PROPERTY INSURANCE    Landlord shall
purchase and keep in force, and as Additional Rent and in accordance with
Paragraph 4D of this Lease. Tenant shall pay to Landlord (or Landlord’s agent
of so directed by Landlord) Tenant’s proportional share (allocated to the
leased Premises by square footage or other equitable basis as calculated and
determined by Landlord) of the deductibles on insurance claims and the cost of,
policy of policies of insurance covering loss or damage to the Premises
(excluding routine maintenance and repairs and incidental damage or destruction
caused by accidents or vandalism for which Tenant is responsible under
Paragraph 7) in the amount of the full replacement value thereof, providing
protection against those parts included within the classification of “all
risks” insurance and flood and/or earthquake insurance. If available, plus a
policy of rental income insurance in the amount of one hundred (100%) percent
of twelve (12) months Basic Rent, plus sums paid as Additional Rent, if such
insurance cost is increased due to Tenant’s use of the Premises, Tenant agrees
to pay to Landlord the full cost of such increase. Tenant shall have no
interest in nor any right to the proceeds of any insurance procured by Landlord
for the Premises.

 

Landlord and Tenant do each hereby respectively
release the other, to the extent of insurance coverage of the releasing party,
from any liability for less or damage caused by fire or any of the extended
coverage casualties included in the releasing party’s insurance policies.
Irrespective of the cause of such fire or casualty; provided, however, that if
the insurance policy of either releasing party prohibits such waiver, then this
waiver shall not take effect until consent to such waiver is obtained. If such
waiver is so prohibiting, the insured party affected shall promptly notify the
other party thereof.

 

13.    INDEMNIFICATION    Landlord shall not be
liable to Tenant and Tenant hereby waives all claims against Landlord for any
injury to or death any person or damage to or destruction of property in or
about the Premises by or from any cause whatsoever, including, without
limitation, gas, fire, oil, electricity or leakage of any character from the
roof, walls, basement or other portions of the Premises but excluding, however,
the willful misconduct or negligence of Landlord, its agents, servants,
employees, invitees, or contractors of which negligence Landlord has knowledge
and reasonable time to correct. Except as to injury to persons or damage to
property to the extent arising from the willful misconduct or the negligence of
Landlord, its agents, servants, employees, invitees, or contractors, Tenant
shall hold Landlord harmless from and defend Landlord against any and all
expenses, including reasonable attorney’s fees. In connection therewith,
arising out of any injury to or death of any person or damage to or destruction
or property occurring in, on or about the Premises, of any part thereof, from
any causes whatsoever.

 

14.    COMPLIANCE    Tenant, at its sole
cost and expense, shall promptly comply with all laws, statutes, ordinances and
governmental rules, regulations of its agents, servants, employees, invitees,
or contractors requirements now or hereafter in effect; with the requirements
of any board of fire underwriters or other similar body now or hereafter
constituted; and with any direction or occupancy certificate issued pursuant to
law by any public officer, provided, however, that no such failure shall be

 

8

 

deemed
a breach of the provisions. If Tenant, immediately upon notification, commences
to remedy or rectify said failure. The judgement of any court of competent
jurisdiction or the admission of Tenant in any action against Tenant, whether
Landlord be a party thereto or not, that Tenant has violated any such law,
statute, ordinance or governmental rule, regulation, requirement, direction or
provision, shall be conclusive of that fact as between Landlord and Tenant.
Tenant shall, at its sole cost and expense, comply with any and all
requirements pertaining to said Premises, of any insurance organization or
company, necessary for the maintenance of reasonable fire and public liability
insurance covering requirements pertaining to said Premises.

 

15.    LIENS    Tenant shall keep the
Premises free from any liens arising out of any work performed, materials
furnished or obligation incurred by Tenant, in the event that Tenant shall not,
within ten (10) days following notice of the imposition of such lien, cause the
same to be released of record. Landlord shall have, in addition to all other
remedies provided herein and by law, the right (after two days written notice),
but no obligation, to cause the same to be released by such means as if shall
deem proper, including payment of the claim giving rise to such lien. All sums
paid by Landlord for such purpose, and all expense incurred by it in connection
therewith, shall be payable to Landlord by Tenant on demand with interest at
the prime rate of interest as quoted by the Bank of America.

 

16.    ASSIGNMENT AND SUBLETTING    Tenant shall assign,
transfer, or hypothecate the leasehold estate under this Lease, of any interest
therein, and shall not sublet the Premises, or any part thereof, or any right
or privilege appurtenant thereto, or suffer any other person or entity to
occupy or use the Premises, or any portion thereof, without, in increase, the
prior written consent of Landlord which consent will not be unreasonably
withheld. As a condition for granting this consent to any assignment, transfer,
or subletting. Landlord may require that Tenant agrees to pay to Landlord, as
Additional Rent, twenty-five percent (25%) of all rents or additional
consideration received by Tenant from its assignees, transferees, or subleasees
in excess of the Rent payable by Tenant to Landlord hereunder (“Excess Rent”);
provided, however, that before sharing such Excess Rent, Tenant shall first be
entitled to recover from such Excess Rent (i) the amount of any reasonable
leasing commissions paid by Tenant to third parties not affiliated with Tenant
and (ii) Tenant’s unamortized costs, excluding costs of interest (if any), to
construct interior improvements in the area being sublet for said subtenant(s).
Tenant shall, by thirty (30) days written notice, advice Landlord of its intent
to assign or transfer Tenant’s interest in the Lease or sublet the Premises or
any portion thereof for any part of the term hereof. Within thirty (30) days
after receipt of said written notice, Landlord may, in its sole discretion
elect to terminate this Lease as to the portion of the Premises described in
Tenant’s notice on the date specified in Tenant’s notice by giving written
notice of such election to terminate (provided Tenant intends to sublet 50% or
more of the Premises) If no such notice to terminate is given to Tenant within
said thirty (30) day period. Tenant may proceed to locate an acceptable
sublease, assignor, or other transfer for presentment to Landlord for
Landlord’s approval, all in accordance with the lease, covenant and condition
of this paragraph 16. If Tenant intends to sublet Premises and Landlord elects
to terminate this Lease, this Lease shall be terminated on the date specified
in Tenant’s notice. If, however, this Lease shall terminate pursuant to the
foregoing with respect to less than all the Premises, the rent as defined and
reserved hereinabove shall be adjusted on a pro rata basis to the number of
square feet retained by Tenant, and this Lease as so amended shall continue in
full force and effect. In the event Tenant is allowed to assign, transfer or
sublet the whole or any part of the Premise, with the prior written consent of
Landlord, no assignee, transferee or subtenant shall assign or transfer this
Lease, either in whole or in part, or sublet the whole or any part of the
Premises without having obtained prior written consent of Landlord which
consent shall not be unreasonably withheld. A consent of Landlord to one
assignment, transfer, hypothecation, subletting, occupation or use without such
consent shall be void and shall constitute a breach of this Lease by Tenant and
shall, if the option of Landlord exercised by written notice to Tenant,
terminate this Lease. The leasehold estate under this Lease shall not shall any
interest therein, be assignable for any purpose by operation of law without the
written consent of Landlord which consent shall not be unreasonably withheld.
As a condition to its consent,

 

9

 

Landlord
may require Tenant to pay all expenses in connection with the assignment, and
Landlord may require Tenant’s assignee or transferee (or other assignees or
transferees) to assume in writing all of the obligations under this Lease and
for Tenant to remain liable to Landlord under the Lease. SEE PARAGRAPH 42

 

17.    SUBORDINATION AND MORTGAGES    In the event
Landlord’s title or leasehold interest is now or hereafter encumbered by a deed
of trust, upon the interest of Landlord in the land and buildings in which the
demised Premises are located, to secure a loan from a lender thereinafter
referred to as “Lender” to Landlord, Tenant shall, at the request of Landlord
or Lender, execute in writing an agreement (in form reasonably acceptable to
Tenant) subordinating its rights under this Lease to the lien of such deed of
trust, or, if so requested, agreeing that the lien of Lender’s deed of trust
shall be or remain subject and subordinate to the rights of Tenant under this
Lease. Notwithstanding any such subordination, Tenant’s possession under this
Lease shall not be disputed if Tenant is not in default and so long as Tenant
shall pay all rent and observe and perform all of the provisions set forth in
this Lease and any Subordination agreement shall reflect the agreement of the
Lender to the same. SEE PARAGRAPH 47

 

18.    ENTRY BY LANDLORD    Landlord reserves, and
shall at all reasonable times after at least 24 hours notice (except in
emergencies) have, the right to enter the Premises to inspect them; to perform
any services to be provided by Landlord hereunder; to make repairs or provide
any services to a contiguous tenant(s); to submit the Premises to prospective
purchasers, mortgagors or tenants; to post notices of nonresponsibility; and to
alter, improve or repair the Premises or other parts of the building, all
without abatement of rent, and may erect scaffolding and other necessary
structures in or through the Premises where reasonably required by the
character of the work to be performed provided, however that the business of
Tenant shall be interfered with to the least extent that is reasonably
practical. Any entry to the Premises by Landlord for the purposes provided for
herein shall not under any circumstances be construed or deemed to be a
forcible or unlawful entry into or a detainer of the Premises or an eviction,
actual or constructive, of Tenant from the premises or any portion thereof.

 

19.    BANKRUPTCY AND DEFAULT    The commencement of a
bankruptcy action or liquidation action or reorganization action or insolvency
action or an assignment of or by Tenant for the benefit of creditors, or any
similar action undertaken by Tenant, or the insolvency of Tenant, shall, at
Landlord’s option, constitute a breach of this Lease by Tenant. If the trustee
or receiver appointed to serve during a bankruptcy, liquidation,
reorganization, insolvency or similar action elects to reject Tenant’s
unexpired Lease, the trustee or receiver shall notify Landlord in writing of
its election within thirty (30) days after an order for relief in a liquidation
action or within thirty (30) days after the commencement of any action.

 

Within thirty (30) days after court approval of the
assumption of this Lease, the trustee or receiver shall cure (or provide
adequate assurance to the reasonable satisfaction of Landlord that the trustee
or receiver shall cure) any and all previous defaults under the unexpired Lease
and shall compensate Landlord for all actual pecuniary loss and shall provide
adequate assurance of future performance under said Lease to the reasonable
satisfaction of Landlord. Adequate assurance of future performance, as used
herein, includes, but shall not be limited to: (i) assurance of source and
payment of rent, and other consideration due under this Lease;
(ii) assurance that the assumption or assignment of this Lease will not
breach substantially any provision, such as radius, location, use, or
exclusivity provision, in any agreement relating to the above described
Premises.

 

Nothing contained in this section shall affect
the existing right of Landlord to refuse to accept an assignment upon
commencement of or in connection with a bankruptcy, liquidation, reorganization
or insolvency action or an assignment of Tenant for the benefit of creditors or
other similar act. Nothing contained in this Lease shall be construed as giving
or granting or creating an equity in the demised Premises to Tenant. In no
event shall the leasehold estate under this Lease, or any interest therein, be
assigned by voluntary or involuntary bankruptcy proceeding without the prior
written consent of Landlord. In no event shall this Lease or any rights or
privileges hereunder be an asset of Tenant under any bankruptcy, insolvency or
reorganization proceedings.

 

10

 

The failure to perform or honor any covenant,
condition or representation made under this Lease shall constitute a default
hereunder by Tenant upon expiration of the appropriate grace period hereinafter
provided. Tenant shall have a period of five (5) business days from the date of
written notice from Landlord within which to cure any default in the payment of
rental or adjustment thereto. Tenant shall have a period of thirty (30) days
from the date of written notice from Landlord within which to cure any other
default under this Lease; provided, however, that if the nature of Tenant’s
failure is such that more than thirty days is reasonably required to cure the
same, Tenant shall not be in default so long as Tenant commences performance
within such thirty day period and thereafter prosecutes the same to completion.

 

Upon an uncured default of this Lease by Tenant,
Landlord shall have the following rights and remedies in addition to any other
rights or remedies available to Landlord at law or in equity:

 

(a)  The
rights and remedies provided for by California Civil Code Section 1951.2,
including but not limited to, recovery of 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 rental loss for the same period that Tenant proves
could be reasonably avoided, as computed pursuant to subsection (b) of
said Section 1951.2. Any proof by Tenant under subparagraphs (2) and (3)
of Section 1951.2 of the California Civil Code of the amount of rental
loss that could be reasonably avoided shall be made in the following manner:
Landlord and Tenant shall each select a licensed real estate broker in the
business of renting property of the same type and use as the Premises and in
the same geographic vicinity. Such two real estate brokers shall select a third
licensed real estate broker, and the three licensed real estate brokers so
selected shall determine the amount of the rental loss that could be reasonably
avoided from the balance of the term of this Lease after the time of award. The
decision of the majority of said licensed real estate brokers shall be final
and binding upon the parties hereto.

 

(b)  The
rights and remedies provided by California Civil Code Section which allows
Landlord to continue the Lease in effect and to enforce all of its rights and
remedies under this Lease, including the right to recover rent as it becomes
due, for so long as Landlord does not terminate Tenant’s right to possession;
acts of maintenance or preservation, efforts to relet the Premises, or the
appointment of a receiver upon Landlord’s initiative to protect its interest
under this Lease shall not constitute a termination of Tenant’s right to
possession.

 

(c)  The
right to terminate this Lease by giving notice to Tenant in accordance with
applicable law.

 

(d)  To
the extent permitted by law the right and power, to enter the Premises and
remove therefrom all persons and property, to store such property in a public
warehouse or elsewhere at the cost of and for the account of Tenant, and to
sell such property and apply such proceeds therefrom pursuant to applicable
California law, Landlord may from time to time sublet the premises or any part
thereof for such term or terms (which may extend beyond the term of this Lease)
and at such rent and such other terms as Landlord in its reasonable sole
discretion may deem advisable, with the right to make alterations and repairs
to the Premises. Upon each subletting, (i) Tenant shall be immediately
liable to pay Landlord, in addition to indebtedness other than rent due
hereunder, the reasonable cost of such subletting, including, but not limited
to, reasonable attorneys’ fees, and any real estate commissions actually paid,
and the cost of such reasonable alterations and repairs incurred by Landlord
and the amount, if any, by which the rent hereunder for the period of such
subletting (to the extent such period does not exceed the term hereof) exceeds
the amount to be paid as rent for the Premises of such period or (ii) at
the option of Landlord, rents received from such subletting shall be applied
first to payment of indebtedness other than rent due hereunder from Tenant to
Landlord; second, to the payment of any costs of such subletting and of such
alterations and repairs; third to payment of rent due and

 

11

 

unpaid hereunder; and the
residue, if any, shall be held by Landlord and applied in payment of future
rent as the same becomes due hereunder. If Tenant has been credited with any
rent to be received by such subletting under option (i) and such rent
shall not be promptly paid to Landlord by the subtenant(s), or if such rentals
received from such subletting under option (ii) during any month be less
than that to be paid during that month by Tenant hereunder, Tenant shall pay
any such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly. No taking possession of the Premises by Landlord shall be construed as
an election on its part to terminate this Lease unless a written notice of such
intention be given to Tenant. Notwithstanding any such subletting without
termination, Landlord may at any time hereafter elect to terminate this Lease
for such previous breach.

 

(e)  The
right to have a receiver appointed for Tenant upon application by Landlord, to
take possession of the Premises and to apply any rental collected from the
premises and to exercise all other rights and remedies granted to Landlord
pursuant to subparagraph d above.

 

20.    ABANDONMENT    Tenant shall not
vacate or abandon the Premises at any time during the term of this Lease
(except that Tenant may vacate so long as it pays Rent, provides a security
service to check the Premises during normal business hours from Monday to
Friday, and otherwise performs its obligations hereunder) and if Tenant shall
abandon, vacate or surrender said Premises, or be dispossessed by the process
of law, or otherwise, any personal property belonging to Tenant and left on the
Premises shall be deemed to be abandoned, at the option of Landlord, except
such property as may be mortgaged to Landlord.

 

21.    DESTRUCTION    In the event the
Premises are destroyed in whole or in part from any cause, except for routine
maintenance and repairs and incidental damage and destruction or caused from
vandalism and accidents for which Tenant is responsible under Paragraph 7,
Landlord may, at its option:

 

(a)  Rebuild
or restore the Premises to their condition prior to the damage or destruction,
or

 

(b)  Terminate
this Lease, (providing that the Premises is damaged to the extent of 331/3% of the replacement cost. If Landlord does not give Tenant notice in
writing within thirty (30) days from the destruction of the Premises of its election
to either rebuild and restore them or to terminate this Lease, Landlord shall
be deemed to have elected to rebuild or restore them, in which event Landlord
agrees, at its expense promptly to rebuild or restore the premises to their
condition prior to the damage or destruction. Tenant shall be entitled to a
reduction in rent while such repair is being made in the proportion that the
area of the Premises rendered untenantable by such damage bears to the total
area of the Premises. If it is reasonably estimated by Landlord that the
rebuilding or restoration will exceed 180 days or if Landlord does not complete
the rebuilding or restoration within one hundred eighty (180) days following
the date of destruction (such period of time to be extended for delays caused
by the fault or neglect of Tenant or because of subsequent acts of God, acts of
public agencies, labor disputes, strikes, fires, freight embargos, rainy or
stormy weather, inability to obtain materials, supplies or fuels, acts of
contractors or subcontractors, or delay of the contractors or subcontractors
due to such causes or other contingencies beyond the control of Landlord), then
Tenant shall have the right to terminate this Lease by giving fifteen (15) days
prior written notice to Landlord. Notwithstanding anything herein to the
contrary, Landlord’s obligation to rebuild or restore shall be limited to the
building and interior improvements constructed by Landlord as they existed as
of the commencement date of the Lease and shall not include restoration of
Tenant’s trade fixtures, equipment, merchandise, or any improvements,
alterations or additions made by Tenant to the Premises, which Tenant shall
forthwith replace or fully repair at Tenant’s sole cost and expense provided
this Lease is not cancelled according to the provisions above.

 

12

 

Unless this Lease is terminated pursuant to the
foregoing provisions, this Lease shall remain in full force and effect. Tenant
hereby expressly waives the provisions of Section 1932,
Subdivision 2, in Section 1933, Subdivision 4 of the California
Civil Code.

 

In the event that the building in which the Premises
are situated is damaged or destroyed to the extent of not less than 331/3% of the replacement cost thereof, Landlord may elect to terminate this
Lease, whether the Premises be injured or not.

 

22.    EMINENT DOMAIN    If all or any part of
the Premises shall be taken by any public or quasi-public authority under the
power of eminent domain or conveyance in lieu thereof, this Lease shall
terminate as to any portion of the Premises so taken or conveyed on the date
when title vests in the condemnor, and Landlord shall be entitled to any and
all payment, income, rent, award, or any interest therein whatsoever which may
be paid or made in connection with such taking or conveyance, and Tenant shall
have no claim against Landlord or otherwise for the value of any unexpired term
of this Lease. Notwithstanding the foregoing paragraph, any compensation
specifically awarded Tenant for loss of business, Tenant’s personal property,
moving cost or loss of goodwill, shall be and remain the property of Tenant.

 

If any action or proceeding is commenced for such
taking of the Premises or any material part thereof, then Landlord shall have
the right to terminate this Lease by giving Tenant written notice thereof
within sixty (60) days of the date of receipt of said written advice, or
commencement of said action or proceeding, or taking conveyance, which
termination shall take place as of the first to occur of the last day of the
calendar month next following the month in which such notice is given or the
date on which title to the Premises shall vest in the condemnor.

 

In the event of such a partial taking or conveyance
of the Premises, if the portion of the Premises taken or conveyed is so
substantial that the Tenant can no longer reasonably conduct its business,
Tenant shall have the privilege of terminating this Lease within sixty (60)
days from the date of such taking or conveyance, upon written notice to
Landlord of its intention to do so, and upon giving of such notice this Lease
shall terminate on the last day of the calendar month next following the month
in which such notice is given, upon payment by Tenant of the rent from the date
of such taking or conveyance to the date of termination.

 

If a portion of the Premises be taken by condemnation
or conveyance in lieu thereof and neither Landlord nor Tenant shall terminate
this Lease as provided herein, this Lease shall continue in full force and
effect as to the part of the Premises not so taken or conveyed, and the rent
herein shall be apportioned as of the date of such taking or conveyance so that
thereafter the rent to be paid by Tenant shall be in the ratio that the area of
the portion of the Premises not so taken or conveyed bears to the total area of
the Premises prior to such taking.

 

23.    SALE OR CONVEYANCE BY
LANDLORD    In
the event of a sale or conveyance of the Premises or any interest therein, by
any owner of the reversion then constituting Landlord, the transferor shall
thereby be released as to such interest transferred from any further liability
upon any of the terms, covenants or conditions (express or implied) herein
contained in favor of Tenant, and in such event, insofar as such transfer is
concerned, Tenant agrees to look solely to the responsibility of the successor
in interest of such transferor in and to the Premises and this Lease. This
Lease shall not be affected by any such sale or conveyance, and Tenant agrees
to attorn to the successor in interest of such transferor.

 

24.    ATTORNMENT TO LENDER OR
THIRD PARTY    In
the event the interest of Landlord in the land and buildings in which the
leased Premises are located (whether such interest of Landlord is a fee title
interest or a leasehold interest) is encumbered by deed of trust, and such
interest is acquired by the lender or any third party through judicial
foreclosure or by exercise of a power of sale at private trustee’s foreclosure
sale, Tenant hereby agrees to attorn to the purchaser at any such foreclosure
sale and to recognize such purchaser as the Landlord under this Lease. In the
event the lien of the deed of

 

13

 

trust
securing the loan from a Lender to Landlord is prior and paramount to the
Lease, this Lease shall nonetheless continue in full force and effect for the
remainder of the unexpired term hereof, at the same rental herein reserved and
upon all the other terms, conditions and covenants herein contained.

 

25.    HOLDING OVER    Any holding over by
Tenant after expiration or other termination of the term of this Lease with the
written consent of Landlord delivered to Tenant shall not constitute a renewal
or extension of the Lease or give Tenant any rights in or to the leased
Premises except as expressly provided in this Lease. Any holding over after the
expiration or other termination of the term of this Lease, with the consent of
Landlord, shall be construed to be a tenancy from month to month, on the same
terms and conditions herein specified insofar as applicable except that the
monthly Basic Rent shall be increased to an amount equal to one hundred fifty
(150%) percent of the monthly Basic Rent required during the last month of the
Lease term.

 

26.    CERTIFICATE OF ESTOPPEL    Tenant shall at any
time upon not less than ten (10) days prior written notice from Landlord
execute, acknowledge and deliver to Landlord a statement in writing
(i) certifying that this Lease is unmodified and in full force and effect
(or, if modified, stating the nature of such modification and certifying that
this Lease, as so modified, is in full force and effect) and the date to which
the rent and other charges are paid in advance, if any, and (ii) acknowledging
that there are not, to Tenant’s knowledge, any uncured defaults on the part of
the Landlord hereunder, or specifying such defaults, if any are claimed. Any
such statement may be conclusively relied upon by any prospective purchaser or
encumbrancer of the Premises. Tenant’s failure to deliver such statement within
such time shall be conclusive upon Tenant that this Lease is in full force and
effect without modification except as may be represented by Landlord; that
there are no uncured defaults in Landlord’s performance, and that not more than
one month’s rent has been paid in advance.

 

27.    CONSTRUCTION CHANGES    It is understood that
the description of the Premises and the location of ductwork, plumbing and
other facilities therein are subject to such minor changes as Landlord or
Landlord’s architect determines to be desirable in the course of construction
of the Premises, and no such changes shall effect this Lease or entitle Tenant
to any reduction of rent hereunder or result in any liability of Landlord to
Tenant. Landlord does not guarantee the accuracy of any drawings supplied to
Tenant and verification of the accuracy of such drawings rests with Tenant.

 

28.    RIGHT OF LANDLORD TO PERFORM    All terms, covenants
and conditions of this Lease to be performed or observed by Tenant shall be
performed or observed by Tenant at Tenant’s sole cost and expense and without
any reduction of rent. If Tenant shall fail to pay any sum of money, or other
rent, required to be paid by it hereunder and such failure shall continue for
five (5) days after written notice by Landlord, or shall fail to perform any
other term or covenant hereunder on its part to be performed, and such failure
shall continue for thirty (30) days after written notice thereof by Landlord,
Landlord, without waiving or releasing Tenant from any obligation of Tenant
hereunder, may, but shall not be obliged to, make any such payment or perform
any such other term or covenant on Tenant’s part to be performed. All sums so
paid by Landlord and all necessary costs of such performance by Landlord
together with interest thereon at the rate of the prime rate of interest per
annum as quoted by the Bank of America from the date of such payment or
performance by Landlord, shall be paid (and Tenant covenants to make such
payment) to Landlord within five (5) business days after demand by Landlord,
and Landlord shall have (in addition to any other right or remedy of Landlord)
the same rights and remedies in the event of nonpayment by Tenant as in the
case of failure by Tenant in the payment of rent hereunder.

 

29.    ATTORNEYS’ FEES

 

A.    In the event that either
Landlord or Tenant should bring suit for the possession of the Premises, for
the recovery of any sum due under this Lease, or because of the breach of any
provision of this Lease, or for any other relief against the other party
hereunder, then all costs and expenses,

 

14

 

including
reasonable attorneys’ fees, incurred by the prevailing party therein shall be
paid by the other party, which obligation on the part of the other party shall
be deemed to have accrued on the date of the commencement of such action and
shall be enforceable whether or not the action is prosecuted to judgment.

 

B.    Should Landlord be named as
a defendant in any suit brought against Tenant in connection with or arising
out of Tenant’s occupancy hereunder, Tenant shall pay to Landlord its costs and
expenses incurred in such suit, including a reasonable attorney’s fee.

 

30.    WAIVER    The waiver by either
party of the other party’s failure to perform or observe any term, covenant or
condition herein contained to be performed or observed by such waiving party
shall not be deemed to be a waiver of such term, covenant or condition or of any
subsequent failure of the party failing to perform or observe the same or any
other such term, covenant or condition therein contained, and no custom or
practice which may develop between the parties hereto during the term hereof
shall be deemed a waiver of, or in any way affect, the right of either party to
insist upon performance and observance by the other party in strict accordance
with the terms hereof.

 

31.    NOTICES    All notices, demands,
requests, advices or designations which may be or are required to be given by
either party to the other hereunder shall be in writing. All notices, demands,
requests, advices or designations by Landlord to Tenant shall be sufficiently
given, made or delivered if personally served on Tenant by United States certified
or registered mail, postage prepaid, or by a reputable same day or overnight
courier service, addressed to Tenant at the Premises Attn: President. All
notices, demands, requests, advices or designations by Tenant to Landlord shall
be sent by United States certified or registered mail, postage prepaid,
addressed to Landlord at its offices at Peery/Arrillaga, 2560 Mission College
Blvd., Suite 101, Santa Clara, CA 95054. Each notice, request, demand, advice
or designation referred to in this paragraph shall be deemed received on the
date of receipt or refusal to accept receipt of the mailing thereof in the
manner herein provided, as the case may be. Either party shall have the right,
upon ten (10) days written notice to the other, to change the address noted
herein.

 

32.    EXAMINATION OF LEASE    Submission of this
instrument for examination or signature by Tenant does not constitute a
reservation of or option for a lease, and this instrument is not effective as a
lease or otherwise until its execution and delivery by both Landlord and
Tenant.

 

33.    DEFAULT BY LANDLORD    Landlord shall not be
in default unless Landlord fails to perform obligations required of Landlord
within a reasonable time, but in no event earlier than (30) days after written
notice by Tenant to Landlord and to the holder of any first mortgage or deed of
trust covering the Premises whose name and address shall have heretofore been
furnished to Tenant in writing, specifying wherein Landlord has failed to
perform such obligations; provided, however, that if the nature of Landlord’s
obligations is such that more than thirty (30) days are required for
performance, then Landlord shall not be in default if Landlord commences
performance within such thirty (30) day period and thereafter diligently
prosecutes the same to completion.

 

34.    CORPORATE AUTHORITY    If Tenant is a
corporation (or a partnership), each individual executing this Lease on behalf
of said corporation (or partnership) represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of said corporation (or
partnership) in accordance with the by-laws of said corporation (or partnership
in accordance with the partnership agreement) and that this Lease is binding
upon said corporation (or partnership) in accordance with its terms. If Tenant
is a corporation, Tenant shall, within thirty (30) days after execution of
this Lease, deliver to Landlord a certified copy of the resolution of the Board
of Directors of said corporation authorizing or ratifying the execution of this
Lease.

 

15

 

36.    LIMITATION OF LIABILITY    In consideration of
the benefits accruing hereunder. Tenant and all successors and assigns covenant
and agree that, in the event of any actual or alleged failure, breach or
default hereunder by Landlord:

 

(a)  the
sole and exclusive remedy shall be against Landlord’s interest in the Premises
leased herein;

 

(b)  no
partner of Landlord shall be sued or named as a party in any suit or action
(except as may be necessary to secure jurisdiction of the partnership);

 

(c)  no
service of process shall be made against any partner of Landlord (except as may
be necessary to secure jurisdiction of the partnership);

 

(d)  no
partner of Landlord shall be required to answer or otherwise plead to any
service of process;

 

(e)  no
judgment will be taken against any partner of Landlord;

 

(f)    any
judgment taken against any partner of Landlord may be vacated and set aside at
any time without hearing;

 

(g)  no
writ of execution will ever be levied against the assets of any partner of
Landlord;

 

(h)  these
covenants and agreements are enforceable both by Landlord and also by any
partner of Landlord.

 

Tenant agrees that each of the foregoing covenants
and agreements shall be applicable to any covenant or agreement either
expressly contained in this Lease or imposed by statute or at common law.

 

37.    SIGNS    No sign, placard,
picture, advertisement, name or notice shall be inscribed, displayed or printed
or affixed on or to any part of the outside of the Premises or any exterior
windows of the Premises without the written consent of Landlord first had and
obtained and Landlord shall have the right to remove any such sign, placard,
picture, advertisement, name or notice without notice to and at the expense of
Tenant. If Tenant is allowed to print or affix or in any way place a sign in,
on, or about the Premises, upon expiration or other sooner termination of this
Lease, Tenant at Tenant’s sole cost and expense shall both remove such sign and
repair all damage in such a manner as to restore all aspects of the appearance
of the Premises to the condition prior to the placement of said sign.

 

All approved signs or lettering on outside doors
shall be printed, painted, affixed or inscribed at the expense of Tenant by a
person approved of by Landlord.

 

Tenant shall not place anything or allow anything to
be placed near the glass of any window, door partition or wall which may appear
unsightly from outside the Premises.

 

38.    MISCELLANEOUS AND GENERAL
PROVISIONS

 

A.    Use
of Building Name.    Tenant shall not, without
the written consent of Landlord, use the name of the building for any purpose
other than as the address of the business conducted by Tenant in the Premises.

 

B.    Choice
of Law, Severability.    This Lease shall in all
respects be governed by and construed in accordance with the laws of the State
of California. If any provision of this Lease shall be invalid, unenforceable
or ineffective for any reason whatsoever, all other provisions hereof shall be
and remain in full force and effect.

 

C.    Definition
of Terms.    The term “Premises” includes the
space leased hereby and any improvements now or hereafter installed therein or
attached thereto. The term “Landlord” or any pronoun used in place thereof
includes the plural as well as the singular and the successors and assigns

 

16

 

of
Landlord. The term “Tenant” or any pronoun used in place thereof includes the
plural as well as the singular and individuals, firms, associations,
partnerships and corporations, and their and each of their respective heirs,
executors, administrators, successors and permitted assigns, according to the
context hereof, and the provisions of this Lease shall inure to the benefit of
and bind such heirs, executors, administrators, successors, and permitted
assigns.

 

The term “person” includes the plural as well as the
singular and individuals, firms, associations, partnerships and corporations.
Words used in any gender include other genders. If there be more than one
Tenant the obligations of Tenant hereunder are joint and several. The paragraph
headings of this Lease are for convenience of reference only and shall have no
effect upon the construction or interpretation of any provision hereof.

 

D.    Time
of Essence.    Time is of the essence of this
Lease and of each and all of its provisions.

 

E.    Quitclaim.    At
the expiration or earlier termination of this Lease, Tenant shall execute, acknowledge
and deliver to Landlord, within ten (10) days after written demand from
Landlord to Tenant, any quitclaim deed or other document required by any
reputable title company, licensed to operate in the State of California, to
remove the cloud or encumbrance created by this Lease from the real property of
which Tenant’s Premises are a part.

 

F.    Incorporation
of Prior Agreements: Amendments.    This
instrument along with any exhibits and attachment hereto constitutes the entire
agreement between Landlord and Tenant relative to the Premises and this
agreement and the exhibits and attachments may be altered, amended or revoked
only by an instrument in writing signed by both Landlord and Tenant. Landlord
and Tenant agree hereby that all prior or contemporaneous oral agreements
between and among themselves and their agents or representatives relative to
the leasing of the Premises are merged in or revoked by this agreement.

 

G.    Recording.    Neither
Landlord nor Tenant shall record this Lease or a short form memorandum hereof
without the consent of the other.

 

H.    Amendments
for Financing.    Tenant further agrees to
execute any reasonable amendments required by a lender to enable Landlord to
obtain financing, so long as Tenant’s rights hereunder are not substantially
affected.

 

I.    Additional
Paragraphs.    Paragraphs 39 through 53 are
added hereto and are included as a part of this lease.

 

J.    Clauses,
Plats and Riders.    Clauses, plats and riders,
if any, signed by Landlord and Tenant and endorsed on or affixed to this Lease
are a part hereof.

 

K.    Diminution
of Light, Air or View.    Tenant covenants and
agrees that no diminution or shutting off of light, air or view by any
structure which may be hereafter erected (whether or not by Landlord) shall in
any way affect his Lease, entitle Tenant to any reduction of rent hereunder or
result in any liability of Landlord to Tenant.

 

17

 

IN WITNESS WHEREOF, Landlord and Tenant have executed
and delivered this Lease as of the day and year last written below. 

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  JOHN
  ARRILLAGA SURVIVOR’S TRUST

  	
   

  	
  ABGENIX,
  INC.

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
  John
  Arrillaga, Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  RICHARD
  T. PEERY SEPARATE PROPERTY TRUST

  	
   

  	
  Type
  or Print Name

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
  Richard
  T. Peery, Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  

 

18

 

Paragraphs
39 through 53 to Lease Agreement Dated January 22, 2002, By and Between
the John Arrillaga Survivor’s Trust and the Richard T. Peery Separate
Property Trust, as Landlord, and Abgenix, Inc., a Delaware corporation, as
Tenant for 50,688± Square Feet of Space Located at 34700 Campus Drive, Fremont,
California.

 

39.    BASIC RENT:    Subject to Paragraphs
2A, 2B and 48 below, and in accordance with Paragraph 4A herein, the total
aggregate sum of FOURTEEN MILLION FOUR HUNDRED THOUSAND FOUR HUNDRED SIXTY AND
80/100 DOLLARS ($14,400,460.80), shall be payable as follows:

 

Upon Tenant’s execution of this Lease, the sum of
EIGHTY-THREE THOUSAND SIX HUNDRED THIRTY-FIVE AND 20/100 DOLLARS ($83,635.20)
shall be due, representing the Basic Rent for the period of May 1, 2002
through May 31, 2002. In the event the Lease does not commence on May 1,
2002, said Basic Rent amount prepaid for the month of May 2002 shall be
applied to the amount due as of the Lease Commencement Date and shall be
prorated if the Lease does not commence on the first day of a given month, with
any excess payment credited to the following month’s Basic Rent due.

 

On June 1, 2002, the sum of EIGHTY-THREE
THOUSAND SIX HUNDRED THIRTY-FIVE AND 20/100 DOLLARS ($83,635.20) shall be due,
and a like sum due on the first day of each month thereafter, through and
including December 1, 2002.

 

On January 1, 2003, the sum of EIGHTY-SIX
THOUSAND ONE HUNDRED SIXTY-NINE AND 60/100 DOLLARS ($86,169.60) shall be due,
and a like sum due on the first day of each month thereafter, through and
including December 1, 2003.

 

On January 1, 2004, the sum of EIGHTY-EIGHT
THOUSAND SEVEN HUNDRED FOUR AND NO/100 DOLLARS ($88,704.00) shall be due, and a
like sum due on the first day of each month thereafter, through and including
December 1, 2004.

 

On January 1, 2005, the sum of NINETY-ONE
THOUSAND TWO HUNDRED THIRTY-EIGHT AND 40/100 DOLLARS ($91,238.40) shall be due,
and a like sum due on the first day of each month thereafter, through and
including December 1, 2005.

 

On January 1, 2006, the sum of NINETY-THREE
THOUSAND SEVEN HUNDRED SEVENTY-TWO AND 80/100 DOLLARS ($93,772.80) shall be
due, and a like sum due on the first day of each month thereafter, through and
including December 1, 2006.

 

On January 1, 2007, the sum of NINETY-SIX
THOUSAND THREE HUNDRED SEVEN AND 20/100 DOLLARS ($96,307.20) shall be due, and
a like sum due on the first day of each month thereafter, through and including
December 2007.

 

On January 1, 2008, the sum of NINETY-EIGHT
THOUSAND EIGHT HUNDRED FORTY-ONE AND 60/100 DOLLARS ($98,841.60) shall be due,
and a like sum due on the first day of each month thereafter, through and
including December 1, 2008.

 

On January 1, 2009, the sum of ONE HUNDRED ONE
THOUSAND THREE HUNDRED SEVENTY-SIX AND NO/100 DOLLARS ($101,376.00) shall be
due, and a like sum due on the first day of each month thereafter, through and
including December 1, 2009.

 

On January 1, 2010, the sum of ONE HUNDRED THREE
THOUSAND NINE HUNDRED TEN AND 40/100 DOLLARS ($103,910.40) shall be due, and a
like sum due on the first day of each month thereafter, through and including
December 1, 2010.

 

On January 1, 2011, the sum of ONE HUNDRED SIX
THOUSAND FOUR HUNDRED FORTY FOUR AND 80/100 DOLLARS ($106,444.80) shall be due,
and a like sum due on the first day of each month thereafter, through and
including December 1, 2011.

 

19

 

On January 1, 2012, the sum of ONE HUNDRED EIGHT
THOUSAND NINE HUNDRED SEVENTY-NINE AND 20/100 DOLLARS ($108,979.20) shall be
due, and a like sum due on the first day of each month thereafter, through and
including December 1, 2012.

 

On January 1, 2013, the sum of ONE HUNDRED
ELEVEN THOUSAND FIVE HUNDRED THIRTEEN AND 60/100 DOLLARS ($111,513.60) shall be
due, and a like sum due on the first day of each month thereafter, through and
including December 1, 2013.

 

On January 1, 2014, the sum of ONE HUNDRED
FOURTEEN THOUSAND FORTY-EIGHT AND NO/100 DOLLARS ($114,048.00) shall be due,
and a like sum due on the first day of each month thereafter, through and
including June 1, 2014; or until the entire aggregate sum of FOURTEEN
MILLION FOUR HUNDRED THOUSAND FOUR HUNDRED SIXTY AND 80/100 Dollars
($14,400,460.80) has been paid, subject to an adjustment as may be required by
any provisions providing for abatement of Rent or adjustment of the Term of
this Lease.

 

40.    CONSENT:    Whenever the consent
or approval of one party to the other is required by the terms of this Lease,
such consent or approval shall not be unreasonably withheld.

 

41.    ASSESSMENT CREDITS:    The demised property
herein may be subject to a special assessment levied by the City of Fremont as
part of an Improvement District. As a part of said special assessment
proceedings (if any), additional bonds were or may be sold and assessments were
or may be levied to provide for construction contingencies and reserve funds. Interest
shall be earned on such funds created for contingencies and on reserve funds
which will be credited for the benefit of said assessment district. To the
extent surpluses are created in said district through unused contingency funds,
interest earnings or reserve funds, such surpluses shall be deemed the property
of Landlord. Notwithstanding that such surpluses may be credited on assessments
otherwise due against the Leased Premises, Tenant shall pay to Landlord, as
additional rent if, and at the time of any such credit of surpluses, an amount
equal to all such surpluses so credited. For example: if (i) the property
is subject to an annual assessment of $1,000.00, and (ii) a surplus of
$200.00 is credited towards the current year’s assessment which reduces the
assessment amount shown on the property tax bill from $1,000.00 to $800.00,
Tenant shall, upon receipt of notice from Landlord, pay to Landlord said
$200.00 credit as Additional Rent.

 

42.    ASSIGNMENT AND SUBLETTING
(CONTINUED):

 

A.    In addition to and
notwithstanding anything to the contrary in Paragraph 16 of this Lease,
Landlord hereby agrees to consent to Tenant’s assigning or subletting said
Lease to: (i) any parent or subsidiary corporation, affiliate, or
corporation with which Tenant merges or consolidates, and provided that, with
respect to any such assignment, said parent or subsidiary corporation,
affiliate, or said corporation has a net worth equal to or greater than the net
worth of Tenant at the time of such assignment, merger, or consolidation; or
(ii) any third party or entity to whom Tenant sells all or substantially
all of its assets; provided, that the net worth of the resulting or acquiring
corporation has a net worth after the merger, consolidation or acquisition
equal to or greater than the net worth of Tenant at the time of such merger,
consolidation or acquisition. No such assignment or subletting will release the
Tenant from its liability and responsibility under this Lease to the extent
Tenant continues in existence following such transaction. Notwithstanding the
above, Tenant shall be required to (a) give Landlord written notice prior
to such assignment or subletting to any party as described in (i) and
(ii) above, and (b) execute Landlord’s consent document prepared by
Landlord reflecting the assignment or subletting.

 

B.    Any and all sublease
agreement(s) between Tenant and any and all subtenant(s) (which agreements must
be consented to by Landlord, pursuant to the requirements of this Lease) shall
contain the following language:

 

“If
Landlord and Tenant jointly and voluntarily elect, for any reason whatsoever,
to terminate the Master Lease prior to the scheduled Master Lease termination
date, then this Sublease (if

 

20

 

then still in effect) shall
terminate concurrently with the termination of the Master Lease. Subtenant
expressly acknowledges and agrees that (1) the voluntary termination of
the Master Lease by Landlord and Tenant and the resulting termination of this
Sublease shall not give Subtenant any right or power to make any legal or
equitable claim against Landlord, including without limitation any claim for
interference with contract or interference with prospective economic advantage,
and (2) Subtenant hereby waives any and all rights it may have under law
or at equity against Landlord to challenge such an early termination of the
Sublease, and unconditionally releases and relieves Landlord, and its officers,
directors, employees and agents, from any and all claims, demands, and/or
causes of action whatsoever (collectively, “Claims”), whether such matters are
known or unknown, latent or apparent, suspected or unsuspected, foreseeable or
unforeseeable, which Subtenant may have arising out of or in connection with any
such early termination of this Sublease. Subtenant knowingly and intentionally
waives any and all protection which is or may be given by Section 1542 of
the California Civil Code which provides as follows: “A general release does
not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have
materially affected his settlement with debtor.

 

The
term of this Sublease is therefore subject to early termination. Subtenant’s
initials here below evidence (a) Subtenant’s consideration of and
agreement to this early termination provision, (b) Subtenant’s
acknowledgment that in determining the net benefits to be derived by Subtenant
under the terms of this Sublease, Subtenant has anticipated the potential for
early termination, and (c) Subtenant’s agreement to the general waiver and
release of Claims above. 

 

	
   

  	
  Initials:

  	
   

  	
   

  	
  Initials:

  	
   

  	
   

  
	
   

  	
  Subtenant

  	
   

  	
  Tenant”

  

 

43.    HAZARDOUS MATERIALS:    Landlord and Tenant
agree as follows with respect to the existence or use of “Hazardous Materials”
(as defined herein) on, in, under or about the Premises and real property
located beneath said Premises (hereinafter collectively referred to as the
“Property”):

 

As
used herein, the term “Hazardous Materials” shall mean any hazardous or toxic
substance, material or waste which is or becomes subject to or regulated by any
local governmental authority, the State of California, or the United States
Government. The term “Hazardous Materials” includes, without limitation any
material or hazardous substance which is (i) listed under Article 9
or defined as “hazardous” or “extremely hazardous” pursuant to Article 11
of Title 22 of the California Administrative Code, Division 4, Chapter 30,
(ii) listed or defined as a “hazardous waste” pursuant to the Federal
Resource Conservation and Recovery Act, Section 42 U.S.C.
Section 6901 et. seq., (iii) listed or defined as a “hazardous
substance” pursuant to the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Section 9601 et. seq, (42 U.S.C.
Section 9601), (iv) petroleum or any derivative of petroleum, or
(v) asbestos.

 

Tenant
shall have no obligation to “clean up”, reimburse, release, indemnify, or
defend Landlord with respect to any Hazardous Materials or wastes which Tenant
(prior to and during the Term of the Lease) or other parties on the Property,
as described below, (during the Term of this Lease) did not store, dispose, or
transport in, use, or cause to be on the Property or which Tenant, its agents,
employees, contractors, vendors, invitees, visitors or its future subtenants
and/or assignees (if any) (during the Term of this Lease), did not store,
dispose, or transport in, use or cause to be on the Property in violation of applicable
law.

 

Tenant
shall be 100 percent liable and responsible for: (i) any and all
“investigation and cleanup” of any Hazardous Materials contamination resulting
from any Hazardous Materials which Tenant, its agents, employees, contractors,
vendors, invitees visitors or its future subtenants and/or assignees (if any),
or other parties on the Property, does store, dispose, or transport in, use or
cause to be on the

 

21

 

Property,
and (ii) any claims, including third party claims, resulting from such
Hazardous Materials contamination. Tenant shall indemnify Landlord and hold
Landlord harmless from any liabilities, demands, costs, expenses and damages,
including, without limitation, attorney fees incurred as a result of any claims
resulting from any such Hazardous Materials contamination.

 

Tenant
also agrees not to use or dispose of any Hazardous Materials on the Property
without first obtaining Landlord’s written consent; provided, however, that
Landlord’s consent shall not be required for normal use of customary household
and office supplies, such as cleaners, lubricants, solvents, copier toner, etc.
Tenant agrees to complete compliance with governmental regulations regarding
the use or removal or remediation of all Hazardous Materials used, stored,
disposed of, transported or caused to be on the Property as stated above, and
prior to the termination of said Lease Tenant agrees to follow the proper
closure procedures and will obtain a clearance from the local fire department
and/or the appropriate governing agency. If Tenant uses any Hazardous
Materials, Tenant also agrees to install, at Tenant’s expense, such Hazardous
Materials monitoring devices as Landlord deems reasonably necessary. It is
agreed that the Tenant’s responsibilities related to Hazardous Materials will
survive the termination date of the Lease and that Landlord may obtain specific
performance of Tenant’s responsibilities under this Paragraph 43.

 

Subject
to the terms and conditions of this Lease, Landlord hereby acknowledges its
consent to Tenant’s storage and use on the Property of those Hazardous
Materials listed on Exhibit C
attached hereto. At Tenant’s sole cost and expense, each year upon the
anniversary of the Commencement Date of the Lease Term (“Anniversary Date”),
Tenant shall hire a qualified environmental consultant, acceptable to Landlord,
to evaluate whether Tenant is in compliance with all applicable Governmental
Regulations pertaining to Hazardous Materials. Tenant shall submit to Landlord
a report from such environmental consultant which discusses the environmental
consultant’s findings within two (2) months of each Anniversary Date. Tenant
shall promptly take all steps necessary to correct any and all problems
identified by the environmental consultant and provide Landlord with
documentation of all such corrections.

 

As
evidenced by their initials set forth immediately below, Tenant acknowledges
that Landlord has provided Tenant with copies of the environmental reports
listed on Exhibit D
(“Reports”), and Tenant acknowledges that Tenant and Tenant’s experts (if any)
have had ample opportunity to review such reports and that Tenant has satisfied
itself as to the environmental conditions of the Property and the suitability
of such conditions for Tenant’s intended use of the Property. To the best of
Landlord’s knowledge as of the date of this Lease, except as noted in said
Reports, no additional on site Hazardous Materials contamination exist on the
Property; however, Landlord shall have no obligation to further investigate. 

 

	
   

  	
  Initial:

  	
   

  	
   

  	
  Initial:

  	
   

  	
   

  
	
   

  	
  Tenant

  	
   

  	
  Landlord

  

 

It
is agreed that the Tenant’s responsibilities related to Hazardous Materials
will survive the expiration or termination of this Lease and that Landlord may
obtain specific performance of Tenant’s responsibilities under this
Paragraph 43.

 

44.    ASSOCIATION DUES:    The Premises leased
hereunder is part of the Ardenwood Property Owner’s Association (the
“Association”), and is subject to Association Dues to fund the cost of the
Association’s obligations and expenses as authorized under said Agreement. As
of the date of this Lease, Tenant’s current prorata share of the Association
Dues is currently estimated at $44.52 per month and is subject to adjustment as
provided for by said Association. Said Association Dues are payable to Tenant
to Landlord as Additional Rent on a monthly basis throughout the Term of this
Lease. Tenant understands that it will not be a direct member of the
Association.

 

45.    AUTHORITY TO EXECUTE:    The parties executing
this Agreement hereby warrant and represent that they are properly authorized
to execute this Agreement and bind the parties on behalf of whom they execute
this agreement and to all of the terms, covenants and conditions of this Agreement
as they relate to the respective parties hereto.

 

22

 

46.    TAXES CONTINUED:    Notwithstanding
anything within Paragraph 9, it is agreed that if any special assessments
for capital improvements are assessed, and if Landlord has the option to either
pay the entire assessment in cash or go to bond, and if Landlord elects to pay
the entire assessment in cash in lieu of going to bond, the entire portion of
the assessment assigned to Tenant’s Leased Premises will be prorated over the
same period that the assessment would have been prorated had the assessment
gone to bond.

 

47.    SUBORDINATION AND MORTGAGES
CONTINUED:    Landlord
represents to Tenant that the Premises are not presently encumbered by a deed
of trust or other security device in favor of any Lender.

 

48.    LEASE CONTINGENT UPON
LANDLORD OBTAINING TERMINATION AGREEMENT WITH CURRENT TENANT:    This Lease is subject
to and conditional upon Landlord obtaining from Matrix Pharmaceutical, Inc.
(“Matrix”), the current tenant occupying the Premises leased hereunder, a
Termination Agreement related to the Premises satisfactory to Landlord on or
before April 30, 2002. In the event Matrix does not fully vacate and
surrender the Premises to Landlord on or before April 30, 2002, the
scheduled Commencement Date herein shall automatically be amended to
June 1, 2002. In the event Landlord is unable to obtain said satisfactory
Termination Agreement on or before May 31, 2002, this Lease shall be automatically
rescinded.

 

49.    BROKERS.    Landlord and Tenant
each represent and warrant that they have not dealt with any real estate
brokers, agents, or finders in connection with the original Term of this Lease,
and know of no real estate broker, agent or finder who is entitled to a
commission in connection with this Lease (“Lease Commission”), except Mark
Pearson of Cresa Partners, which Lease Commission shall be paid one hundred
percent (100%) by Matrix Pharmaceutical, Inc. The parties hereto acknowledge
that Landlord will not pay a Lease Commission to Mark Pearson, Cresa Partners
or any other broker related to the original Term of this Lease, or in the event
this Lease is extended or the square footage leased hereunder is increased for
any reason whatsoever. Landlord and Tenant each agrees to defend, protect,
indemnify and hold the other party harmless from and against all claims for
brokerage commissions, finder’s fees, and other compensation made by any other
broker, agent, or finder as consequence of Landlord’s or Tenant’s actions or
dealings with such other broker, agent or finder.

 

50.    CROSS DEFAULT.    It is understood that
Landlord and Tenant have previously entered into another lease dated
July 31, 1996 for premises located at 7601 Dumbarton Circle, Fremont, California
(the “Existing Lease”). As a material part of the consideration for the
execution of this Lease by Landlord, it is agreed between Landlord and Tenant
that a default under this Lease, or a default under said Existing Lease may, at
the option of Landlord, be considered a default under both leases, in which
event Landlord shall be entitled (but in no event required) to apply all rights
and remedies of Landlord under the terms of one lease to both leases including,
but not limited to, the right to terminate one or both of said leases by reason
of a default under said Existing Lease or hereunder.

 

51.    OPTION TO EXTEND LEASE FOR
ONE (1) YEAR SEVEN (7) MONTHS:    Landlord hereby grants to Tenant an Option to
Extend this Lease Agreement for an additional one (1) year seven (7) month
period upon the following terms and conditions;

 

A.    Tenant shall give Landlord
written notice of Tenant’s exercise of this Option to Extend not later than
twelve (12) months prior to the scheduled Lease Termination Date, which
Termination Date is currently projected to be June 30, 2014, in which
event the Lease shall be considered extended for an additional one (1) year and
seven (7) months, subject to the Basic Rental set forth below and with:
(i) the Rent to be determined pursuant to Paragraph B below;
(ii) the terms and conditions subject to amendment by Landlord (Landlord,
in its sole and absolute discretion, may, but is not required to, incorporate
its current Lease provisions that are standard in Landlord’s leases as of the
date of Tenant’s exercise of its Option to Extend); and (iii) this
Paragraph 51 deleted. In the event that Tenant fails to timely exercise
Tenant’s Option to Extend as set forth herein in writing, Tenant shall have no

 

23

 

further
Option to Extend this Lease, and this Lease shall continue in full force and
effect for the full remaining term hereof, absent this Paragraph 51.

 

B.    In the event Tenant timely
exercises Tenant’s Option to Extend as set forth herein, Landlord shall, within
fifteen (15) days after receipt of Tenant’s exercise of option, advise Tenant
of the terms and conditions and Rent required for the Extended Term of the
Lease. Tenant shall have five (5) days after receipt from the Landlord of said
new terms and conditions and Rent in which to accept said new Basic Rental,
terms and conditions and enter into written documentation confirming same. In
the event Tenant fails to execute said written documentation confirming said
new terms and conditions and Rent for the Extended Term of Lease within said
five (5) day period, Tenant shall have no further Option to Extend this Lease,
and this Lease shall continue in full force and effect for the full remaining
term hereof absent of this Paragraph 51, with Landlord having no further
responsibility or obligation to Tenant with respect to Tenant’s Option to
Extend.

 

C.    The option rights of Tenant
under this Paragraph 51, and the Extended Term hereunder, are granted for
Tenant’s personal benefit and may not be assigned or transferred by Tenant,
either voluntarily or by operation of law, in any manner whatsoever (except to
a parent or subsidiary corporation or successor by merger as provided for in
Paragraph 42A). In the event that Landlord consents to a sublease or assignment
under Paragraph 51, the option granted herein and any Extended Term
hereunder shall be void and of no force and effect, whether or not Tenant shall
have purported to exercise such option prior to such assignment or sublease.

 

D.    It is agreed that if Tenant
is at any time prior to exercising its Option to Extend in default of this
Lease and has failed to cure the default in the time period allowed, this
Paragraph 51 will be null and void and Tenant will have no further rights
under this Paragraph 51. It is further agreed that if Tenant has exercised
its Option to Extend and is subsequently in default and fails to cure said
default in the time period allowed prior to, or at any time the lease commences
on the Extended Term, Landlord may at its sole and absolute discretion, cancel
Tenant’s Option to Extend, and this Lease will continue in full force and
effect for the full remaining term hereof, absent of this Paragraph 51.

 

52.    EXISTING TENANT
IMPROVEMENTS:    It
is agreed between the parties hereto that the existing tenant improvements
(“Existing Tenant Improvements”) as detailed on Exhibit B-1 attached
hereto shall not be removed from the Premises by Landlord prior to the Lease
Commencement Date or thereafter during the Lease Term and that said Existing
Tenant Improvements will be available for Tenant’s use during the Lease Term.
Notwithstanding the above, Tenant shall be one hundred percent (100%)
responsible for the maintenance, repair and replacement (if necessary) of said
Existing Tenant Improvements.

 

53.    TRADE FIXTURES:    Notwithstanding
anything to the contrary in Lease Paragraphs 5 (“Acceptance and Surrender
of Premises”) and 6 (“Alterations and Additions”), Tenant shall be entitled to
remove any trade fixtures that are not attached to the Premises. Any trade
fixtures that are attached to the Premises shall become the property of
Landlord at the expiration of the Lease, and may not be removed by Tenant
without the prior written consent of Landlord. Tenant shall be one hundred
percent (100%) responsible for the maintenance, repair and replacement (if
necessary) of all trade fixtures installed in the Premises.

 

24

 

[Floor Plan
1]

 

EXHIBIT A TO LEASE AGREEMENT DATED
JANUARY 22, 2002 BY AND BETWEEN THE JOHN ARRILLAGA SURVIVOR’S TRUST AND
THE RICHARD T. PEERY SEPARATE PROPERTY TRUST, AS LANDLORD, AND ABGENIX,
INC., AS TENANT.

 

25

 

[Floor Plan
2]

 

EXHIBIT B TO LEASE AGREEMENT DATED
JANUARY 22, 2002 BY AND BETWEEN THE JOHN ARRILLAGA SURVIVOR’S TRUST AND
THE RICHARD T. PEERY SEPARATE PROPERTY TRUST, AS LANDLORD, AND ABGENIX,
INC., AS TENANT.

 

26

 

EXHIBIT B-1

 

Existing Tenant Improvements Not to Be Removed By
Landlord

Prior to Lease Commencement Date or During the Lease Term

 

1.                                       All HVAC, plumbing, electrical, and security
systems currently installed (as of the Lease Commencement Date) within the
Premises.

 

2.                                       Emergency Generator.

 

3.                                       All walls, doors and built-in cabinetry.

 

4.                                       All laboratory case work and fume hoods.

 

5.                                       One cold room.

 

6.                                       All installed glass wash and autoclave
equipment/facilities.

 

7.                                       All installed equipment/facilities servicing
the vivarium (Bally Boiler and Gage Wash equipment).

 

8.                                       All other installed utility systems and
related infrastructure shall remain in place.

 

9.                                       All installed data/telephone cabling.

 

10.                                 All installed document storage vaults

 

Notwithstanding anything to
the contrary in said Lease, Tenant shall be one hundred percent (100%)
responsible for the maintenance, repair and replacement (if necessary) of said
items noted above.

 

27

 

Exhibit C to Lease Agreement dated January 22,
2002

 

Abgenix                  Estimated
Chemical Inventory for B-6 

 

	
  Hazard

  Class

  	
   

  	
  Common

  Name

  	
   

  	
  Chemical

  Name

  	
   

  	
  CAS #

  	
   

  	
  Extremely

  Hazardous?

  	
   

  	
  Pure or

  Mixture

  	
   

  	
  Solid,

  Gas or

  Liquid

  	
   

  	
  Fed

  Haz

  Cat

  	
   

  	
  Days

  on

  Site

  	
   

  	
  Largest

  Container

  	
   

  	
  Max.

  Amount

  	
   

  	
  Avg

  Amount

  	
   

  	
  Units

  (lbs,

  gal,

  cu

  ft)

  	
   

  	
  Container

  	
   

  	
  Pressure

  	
   

  	
  Temp

  	
   

  	
  

  

  NFPA

  	
   

  
	
  Health

  	
   

  	
  Fire

  	
   

  	
  Reactivity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  10%  Azide

  	
   

  	
  26628-22-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  3

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  1-Propanol

  	
   

  	
  71-23-B

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  2 Propanol

  	
   

  	
  67-63-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Bleach

  	
   

  	
  5% Sodium Hydrochlorite

  	
   

  	
  7681-52-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  5% Sodium Hydroxide

  	
   

  	
  1310-73-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR

  	
   

  	
  LancerAid

  	
   

  	
  Acetic Acid

  	
   

  	
  631-61-8

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  25

  	
   

  	
  50

  	
   

  	
  40

  	
   

  	
  G

  	
   

  	
  CB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  t

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Acetic Acid

  	
   

  	
  64-19-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  AR

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  1

  	
   

  	
  0.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Acetic Acid Glacial

  	
   

  	
  64-19-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CA

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Acetic Acid Glacial

  	
   

  	
  64-19-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACFR

  	
   

  	
  365

  	
   

  	
  0.3

  	
   

  	
  0.3

  	
   

  	
  0.3

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  1

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/F

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Acetone?

  	
   

  	
  75-05-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  5

  	
   

  	
  2.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Air Compressed

  	
   

  	
  25635-88-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  250

  	
   

  	
  5000

  	
   

  	
  5000

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
  Air

  	
   

  	
  Air, Compressed

  	
   

  	
  25635-88-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  233

  	
   

  	
  466

  	
   

  	
  466

  	
   

  	
  cu
  ft

  	
   

  	
  CYL

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Aluminum Potassium Sulfate

  	
   

  	
  7784-24-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Ammonium Bicarbonate

  	
   

  	
  1066-33-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  1.00

  	
   

  	
  0.50

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Ammonium Chloride

  	
   

  	
  12125-02-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Ammonium Hydroxide

  	
   

  	
  1336-21-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CIA

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  1

  	
   

  	
  0.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Ammonium Persulfate

  	
   

  	
  7727-54-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  AR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Ammonium Sulfate

  	
   

  	
  7783-20-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Ammonium Chloride

  	
   

  	
  12125-02-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  MFG

  	
   

  	
   

  	
   

  	
  Argon

  	
   

  	
  7440-37-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  100

  	
   

  	
  100

  	
   

  	
  100

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  DHH

  	
   

  	
   

  	
   

  	
  Aspartic Acid

  	
   

  	
  617-45-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.4

  	
   

  	
  0.2

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Butyric Acid

  	
   

  	
  107-92-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  AF

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  FS

  	
   

  	
   

  	
   

  	
  Carbon Decolorizing

  	
   

  	
  7440-44-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  CF

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.5

  	
   

  	
  0.2

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  CRY

  	
   

  	
   

  	
   

  	
  Carbon dioxide, liquified

  	
   

  	
  124-38-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  PA

  	
   

  	
  365

  	
   

  	
  40

  	
   

  	
  120

  	
   

  	
  120

  	
   

  	
  GAL

  	
   

  	
  DEW

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Chloroform

  	
   

  	
  67-66-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.20

  	
   

  	
  0.20

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Chronenge

  	
   

  	
  Chromium Trioxide

  	
   

  	
  1333-82-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  2

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Citric Acid

  	
   

  	
  5949-29-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  

 

28

 

	
  Hazard

  Class

  	
   

  	
  Common

  Name

  	
   

  	
  Chemical

  Name

  	
   

  	
  CAS #

  	
   

  	
  Extremely

  Hazardous?

  	
   

  	
  Pure or

  Mixture

  	
   

  	
  Solid,

  Gas or

  Liquid

  	
   

  	
  Fed

  Haz

  Cat

  	
   

  	
  Days

  on

  Site

  	
   

  	
  Largest

  Container

  	
   

  	
  Max.

  Amount

  	
   

  	
  Avg

  Amount

  	
   

  	
  Units

  (lbs,

  gal,

  cu

  ft)

  	
   

  	
  Container

  	
   

  	
  Pressure

  	
   

  	
  Temp

  	
   

  	
  

  

  NFPA

  	
   

  
	
  Health

  	
   

  	
  Fire

  	
   

  	
  Reactivity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  D(+)- Glucose

  	
   

  	
  50-99-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  500

  	
   

  	
  500

  	
   

  	
  300

  	
   

  	
  P

  	
   

  	
  FB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
  Diesel

  	
   

  	
  Diesel #2

  	
   

  	
  68476-34-6

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  FAC

  	
   

  	
  365

  	
   

  	
  400

  	
   

  	
  400

  	
   

  	
  400

  	
   

  	
  G

  	
   

  	
  AT

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Starting Fluid

  	
   

  	
  Diethyl ether

  	
   

  	
  60-29-7

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  CUFT

  	
   

  	
  CN

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  4

  	
   

  	
  1

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Diethylenetrismin-pentacetic
  acid

  	
   

  	
  67-43-6

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Acetone

  	
   

  	
  Dimethyl Ketone

  	
   

  	
  67-64-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  FA

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Dimethyl Polysifoxane

  	
   

  	
  9016-00-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Dimethyl Sulfox

  	
   

  	
  67-68-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CA

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.20

  	
   

  	
  0.1

  	
   

  	
  L

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Dimethyl Sulphoxide

  	
   

  	
  67-68-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Disodium Pyrophosphate

  	
   

  	
  7722-88-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  DMSO

  	
   

  	
  67-68-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Alcohol

  	
   

  	
  Ethanol

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  FAC

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Ethanol 70%

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  6

  	
   

  	
  6

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Gills III

  	
   

  	
  Ethanol, Aluminus Sulfate

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  FC

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Eosiny Stain

  	
   

  	
  Ethanol, Aluminus Sulfate

  	
   

  	
  64-17-5 631-61-8

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  FC

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Reagent Alcohol

  	
   

  	
  Ethanol, Methanol

  	
   

  	
  64-17-5 57-56-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Reagent Alcohol

  	
   

  	
  Ethanol, methanol,
  isopropanol

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  10

  	
   

  	
  6

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  REAGENT ALOCHOL

  	
   

  	
  ETHANOL/METHONAL

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Ethanolamine

  	
   

  	
  2002-24-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  AR

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR/FLAM

  	
   

  	
   

  	
   

  	
  Ethanolamine

  	
   

  	
  141-43-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CFA

  	
   

  	
  365

  	
   

  	
  0.26

  	
   

  	
  1

  	
   

  	
  0.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Ethylene Bromine

  	
   

  	
  1239-49-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  10

  	
   

  	
  0.10

  	
   

  	
  10

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Ethyl Alcohol

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  5

  	
   

  	
  2.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Ethylenediamineletracelic
  Acid

  	
   

  	
  60-00-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Ferrous Sulfate

  	
   

  	
  7720-78-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IOX

  	
   

  	
   

  	
   

  	
  Formaldehyde

  	
   

  	
  50-08-0

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
   

  	
   

  	
  Formatin 4%

  	
   

  	
  50-00-01

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Formic Acid

  	
   

  	
  64-18-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  AF

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  1

  	
   

  	
  0.5

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Formic Acid 1% IPR

  	
   

  	
  64-18-6

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  

 

29

 

	
  Hazard

  Class

  	
   

  	
  Common

  Name

  	
   

  	
  Chemical

  Name

  	
   

  	
  CAS #

  	
   

  	
  Extremely

  Hazardous?

  	
   

  	
  Pure or

  Mixture

  	
   

  	
  Solid,

  Gas or

  Liquid

  	
   

  	
  Fed

  Haz

  Cat

  	
   

  	
  Days

  on

  Site

  	
   

  	
  Largest

  Container

  	
   

  	
  Max.

  Amount

  	
   

  	
  Avg

  Amount

  	
   

  	
  Units

  (lbs,

  gal,

  cu

  ft)

  	
   

  	
  Container

  	
   

  	
  Pressure

  	
   

  	
  Temp

  	
   

  	
  

  

  NFPA

  	
   

  
	
  Health

  	
   

  	
  Fire

  	
   

  	
  Reactivity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Glutamic Acid

  	
   

  	
  56-85-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Glycerol

  	
   

  	
  Glycerin

  	
   

  	
  56-81-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.25

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Glycerin

  	
   

  	
  56-81-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.20

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Glycerol

  	
   

  	
  56-81-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  1.5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Glycine

  	
   

  	
  58-40-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  RAD

  	
   

  	
  Tritium

  	
   

  	
  H-3

  	
   

  	
   

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S/L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  10

  	
   

  	
  2

  	
   

  	
  mCi

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Helium Compressed

  	
   

  	
  7440-59-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  304

  	
   

  	
  1250

  	
   

  	
  1250

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Helium Compressed

  	
   

  	
  7440-59-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  C,P

  	
   

  	
  365

  	
   

  	
  291

  	
   

  	
  291

  	
   

  	
  291

  	
   

  	
  CF

  	
   

  	
  CYL

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Helium, Compressed

  	
   

  	
  7440-59-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  223

  	
   

  	
  223

  	
   

  	
  223

  	
   

  	
  cuft

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Hydrochloric Acid

  	
   

  	
  7647-01-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  3

  	
   

  	
  1.5

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Hydrogen Peroxide

  	
   

  	
  7722841

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Hydrogen Peroxide 30%

  	
   

  	
  7722-B4-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  AC

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Hydrogen Peroxide 30%

  	
   

  	
  7722-B4-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Hydroxamine Hydrochloride

  	
   

  	
  5470-11-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  1

  	
   

  
	
  RAD

  	
   

  	
   

  	
   

  	
  I-125

  	
   

  	
   

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S/L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  10

  	
   

  	
  2

  	
   

  	
  mCi

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FL

  	
   

  	
  2-Propanol

  	
   

  	
  Isopropanol

  	
   

  	
  E7-63-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  15

  	
   

  	
  5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Karamycin

  	
   

  	
  25369-94-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
  Charcoal Starter

  	
   

  	
  Kerosene

  	
   

  	
  8008-20-6

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Lauryl Sulfate

  	
   

  	
  151-21-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CRY

  	
   

  	
   

  	
   

  	
  Liquid Nitrogen

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  PA

  	
   

  	
  365

  	
   

  	
  40

  	
   

  	
  160

  	
   

  	
  120

  	
   

  	
  GAL

  	
   

  	
  DEW

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CRY

  	
   

  	
   

  	
   

  	
  Liquid Nitrogen

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  PA

  	
   

  	
  365

  	
   

  	
  40

  	
   

  	
  300

  	
   

  	
  240

  	
   

  	
  G

  	
   

  	
  DEW

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  L-Protine

  	
   

  	
  147-85-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Reagent grade alcohol

  	
   

  	
  Methanol

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  6

  	
   

  	
  4

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Methanol

  	
   

  	
  67-58-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  8

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
  10% buffered

  	
   

  	
  methanol, formaldehyde

  	
   

  	
  50-00-0

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  FAC

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Methanol

  	
   

  	
  Methyl Alcohol

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  FA

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Paint

  	
   

  	
  Methyl ethyl ketone

  	
   

  	
  78-86-4

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  CN

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Methylene Chloride

  	
   

  	
  75-09-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Mineral Oil

  	
   

  	
  8012-95-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.20

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  1

  	
   

  	
  0

  	
   

  

 

30

 

	
  Hazard

  Class

  	
   

  	
  Common

  Name

  	
   

  	
  Chemical

  Name

  	
   

  	
  CAS #

  	
   

  	
  Extremely

  Hazardous?

  	
   

  	
  Pure or

  Mixture

  	
   

  	
  Solid,

  Gas or

  Liquid

  	
   

  	
  Fed

  Haz

  Cat

  	
   

  	
  Days

  on

  Site

  	
   

  	
  Largest

  Container

  	
   

  	
  Max.

  Amount

  	
   

  	
  Avg

  Amount

  	
   

  	
  Units

  (lbs,

  gal,

  cu

  ft)

  	
   

  	
  Container

  	
   

  	
  Pressure

  	
   

  	
  Temp

  	
   

  	
  

  NFPA

  	
   

  
	
  Health

  	
   

  	
  Fire

  	
   

  	
  Reactivity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  N,N- Dimethyl Formamide

  	
   

  	
  6B-12-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  AF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
   

  	
   

  	
  N,N-Dimethyl Formamide

  	
   

  	
  6B-12-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.25

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Nitric Acid

  	
   

  	
  7697-37-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  CRG

  	
   

  	
   

  	
   

  	
  Nitrogen

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  50

  	
   

  	
  400

  	
   

  	
  350

  	
   

  	
  cuft

  	
   

  	
  DEW

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Nitrogen Compressed

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  291

  	
   

  	
  291

  	
   

  	
  600

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CRG

  	
   

  	
   

  	
   

  	
  Nitrogen Compressed

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  304

  	
   

  	
  304

  	
   

  	
  304

  	
   

  	
  cuft

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  NFG

  	
   

  	
   

  	
   

  	
  Nitrogen Compressed

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  G

  	
   

  	
  A
  P

  	
   

  	
  365

  	
   

  	
  304

  	
   

  	
  304

  	
   

  	
  304

  	
   

  	
  CF

  	
   

  	
  CYL

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Hapes

  	
   

  	
  N-LZ Hydroxyethy Piperazine
  N- Ether

  	
   

  	
  17365-45-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OXY

  	
   

  	
   

  	
   

  	
  Oxygen 50%/CO2 50%

  	
   

  	
  7782-44-7

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  G

  	
   

  	
  PF

  	
   

  	
  365

  	
   

  	
  117

  	
   

  	
  117

  	
   

  	
  117

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OXY

  	
   

  	
   

  	
   

  	
  Oxygen 50%/Nitrogen 50%

  	
   

  	
  7782-44-7

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  G

  	
   

  	
  PF

  	
   

  	
  365

  	
   

  	
  250

  	
   

  	
  1250

  	
   

  	
  1250

  	
   

  	
  CF

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  RAD

  	
   

  	
   

  	
   

  	
  P-32

  	
   

  	
   

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S/L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  10

  	
   

  	
  2

  	
   

  	
  mCi

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Paraformaldehyde 16%

  	
   

  	
  3052S-89-4

  	
   

  	
  Y

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  AC

  	
   

  	
  365

  	
   

  	
  0.05

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Perchloric Acid

  	
   

  	
  7601-90-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CA

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Phenol

  	
   

  	
  108-95-2

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Phenol

  	
   

  	
  108-95-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Phenol Chloroform

  	
   

  	
  67-66-3

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CA

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  CCH

  	
   

  	
   

  	
   

  	
  Phenylmethy Sulfuryl

  	
   

  	
  329-98-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR/TOX

  	
   

  	
   

  	
   

  	
  Phenylmethylsulfuryl
  Fluoride

  	
   

  	
  329-98-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  5.00

  	
   

  	
  2.5

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Phosphoric Acid

  	
   

  	
  766-38-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.25

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Phosphoric Acid

  	
   

  	
  766-38-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Polyoxyethylene Sorbitan

  	
   

  	
  9005-64-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.20

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Potassium Chloride

  	
   

  	
  7447-40-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.25

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Potassium Hydroxide

  	
   

  	
  1310-58-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Pyruvic Acid

  	
   

  	
  127-17-3

  	
   

  	
  N

  	
   

  	
  0

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Rossville Alcohol 200 Proof

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  10

  	
   

  	
  0

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Salt

  	
   

  	
  Salt

  	
   

  	
  7647-14-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  23

  	
   

  	
  500

  	
   

  	
  500

  	
   

  	
  P

  	
   

  	
  Bag

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Silver Nitrate

  	
   

  	
  7761-88-98

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A
  R

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.10

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  4

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OYR

  	
   

  	
  Fixer

  	
   

  	
  Silver Nitrate (0.1%)

  	
   

  	
  7761-88-8

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  10

  	
   

  	
  20

  	
   

  	
  10

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Sodium Heparin

  	
   

  	
  9D41-D8-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.10

  	
   

  	
  0.10

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  

 

31

 

	
  Hazard

  Class

  	
   

  	
  Common

  Name

  	
   

  	
  Chemical

  Name

  	
   

  	
  CAS #

  	
   

  	
  Extremely

  Hazardous?

  	
   

  	
  Pure or

  Mixture

  	
   

  	
  Solid,

  Gas or

  Liquid

  	
   

  	
  Fed

  Haz

  Cat

  	
   

  	
  Days

  on

  Site

  	
   

  	
  Largest

  Container

  	
   

  	
  Max.

  Amount

  	
   

  	
  Avg

  Amount

  	
   

  	
  Units

  (lbs,

  gal,

  cu

  ft)

  	
   

  	
  Container

  	
   

  	
  Pressure

  	
   

  	
  Temp

  	
   

  	
  

  NFPA

  	
   

  
	
  Health

  	
   

  	
  Fire

  	
   

  	
  Reactivity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOX

  	
   

  	
   

  	
   

  	
  Sodium Azide

  	
   

  	
  26528-22-0

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  ACR

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  3

  	
   

  
	
  DVR

  	
   

  	
  Developer

  	
   

  	
  Sodium Bissulfate (0.5%)

  	
   

  	
  7601-38-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  10

  	
   

  	
  20

  	
   

  	
  10

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Sodium Chloride

  	
   

  	
  7647-14-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  0.1

  	
   

  	
  0.5

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  TRYPAN BLUE SOLUTION

  	
   

  	
  SODIUM CHLORIDE

  	
   

  	
  75-57-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Luminey

  	
   

  	
  Sodium Chloride Sodium
  Phosphate

  	
   

  	
  7647-14-5 7722-88-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  5

  	
   

  	
  10

  	
   

  	
  5

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Sodium Hydroxide

  	
   

  	
  1310-73-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  2.5

  	
   

  	
  20

  	
   

  	
  10

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
  Bleach

  	
   

  	
  Sodium Hypochloride

  	
   

  	
  7681-52-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1

  	
   

  	
  20

  	
   

  	
  10

  	
   

  	
  G

  	
   

  	
  PR

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Sodium Orthorariadate

  	
   

  	
  13721-39-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.50

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
   

  	
   

  	
  Sodium Perchlorate

  	
   

  	
  1791-07-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  AR

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.25

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  HTOX

  	
   

  	
   

  	
   

  	
  Sodium Selenite

  	
   

  	
  10102-18-8

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C/A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  P

  	
   

  	
  BOX

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CL

  	
   

  	
  WD 40

  	
   

  	
  Standard Solvent

  	
   

  	
  8052-41-3

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  CUFT

  	
   

  	
  CA

  	
   

  	
  G

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Sulfuric Acid

  	
   

  	
  7684-93-9

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  AR

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.5

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  2

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Tetraethylammonium Chloride
  Hydrate

  	
   

  	
  56-34-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.5

  	
   

  	
  0.25

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Permount

  	
   

  	
  Toluene, piocolyte

  	
   

  	
  108-08-33

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  AF

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Trichloracelic Acid

  	
   

  	
  76-02-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  1.00

  	
   

  	
  1.00

  	
   

  	
  P

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Tilethytamine

  	
   

  	
  121-44-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  CAF

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.20

  	
   

  	
  0.2

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
   

  	
   

  	
  Tilethytamine

  	
   

  	
  121-44-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  ACF

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
   

  	
   

  	
  Telfluoroacetic Acid

  	
   

  	
  76-05-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  0.1

  	
   

  	
  0.5

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Tris Hyrdoxymethyl

  	
   

  	
  77-86-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  2.2

  	
   

  	
  2.2

  	
   

  	
  2.2

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Trion-x-100

  	
   

  	
  9002-98-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.25

  	
   

  	
  0.50

  	
   

  	
  0.25

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Trypan Blue Solution

  	
   

  	
  72-57-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A/C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
   

  	
   

  	
  Tween

  	
   

  	
  9005-64-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.2

  	
   

  	
  0.20

  	
   

  	
  0.1

  	
   

  	
  G

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
   

  	
   

  	
  Urea

  	
   

  	
  57-13-6

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  0.5

  	
   

  	
  1.00

  	
   

  	
  0.50

  	
   

  	
  P

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  

 

32

 

EXHIBIT D TO LEASE AGREEMENT DATED
JANUARY 22, 2002 BETWEEN THE

JOHN ARRILLAGA SURVIVOR’S TRUST AND THE RICHARD T. PEERY

SEPARATE PROPERTY TRUST, AS LANDLORD, AND ABGENIX, INC., AS TENANT

HAZARDOUS MATERIALS REPORTS

PROVIDED TO TENANT

 

1)                                      Preliminary Environmental Assessment and Soil
Testing for Ardenwood Corporate Commons: prepared for Bedford Properties on
August 10, 1988 by Kaldveer Associates;

 

2)                                      Preliminary Environmental Assessment and Soil
Testing for Ardenwood Corporate Commons Lots 1 through 27; prepared for
Bedford Properties on June 13, 1989 by Kaldveer Associates;

 

3)                                      Phase I Site Assessment for Ardenwood
Corporate Commons; prepared for Bedford Properties in July 1991 by
Mittelhauser Corporation.

 

33

 

EXHIBIT B

APPROVED HAZARDOUS OR TOXIC MATERIALS

 

	
  HAZARD CLASS

  	
   

  	
  CHEMICAL
  NAME

  	
   

  	
  CAS

  	
   

  	
  EHS?Y or N

  	
   

  	
  PURE OR
  MIXTURE?

  	
   

  	
  SOLID,
  LIQUID, OR GAS

  	
   

  	
  FEDERAL
  HAZ. CAT. (A,C,F,R,P)

  	
   

  	
  DAYS  ON SITE

  	
   

  	
  LARGEST
  CONTAINER

  	
   

  	
  CONVERSION
  FACTOR

  	
   

  	
  NO. OF
  CONT.

  	
   

  	
  MAX.
  AMOUNT

  	
   

  	
  AVG.
  AMOUNT

  	
   

  	
  UNIT
  (Lbs., Gal., Cu.Ft.)

  	
   

  	
  STORAGE
  CONTAINER

  	
   

  	
  STORAGE
  PRESSURE

  	
   

  	
  STORAGE
  TEMP.

  	
   

  	
  H

  	
   

  	
  F

  	
   

  	
  R

  	
   

  
	
  TOX

  	
   

  	
  2-Mercaptobenzothiazole,
  (2-Mercaptoethanol)

  	
   

  	
  60-24-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  C

  	
   

  	
  365

  	
   

  	
  100
  ml

  	
   

  	
  0.026

  	
   

  	
  1

  	
   

  	
  0.026

  	
   

  	
  0.026

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Accustain (methyl alcohol),
  (Methanol)

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  1

  	
   

  	
  0.132

  	
   

  	
  0.132

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  5

  	
   

  	
  0.660

  	
   

  	
  0.660

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1
  L

  	
   

  	
  0.264

  	
   

  	
  3

  	
   

  	
  0.792

  	
   

  	
  0.792

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  4L

  	
   

  	
  1.0568

  	
   

  	
  1

  	
   

  	
  1.057

  	
   

  	
  1.057

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Alcohol blend (Ethanol,
  Methanol, 2-Propanol, Water

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A,
  C, F

  	
   

  	
  365

  	
   

  	
  4L

  	
   

  	
  1.0568

  	
   

  	
  9

  	
   

  	
  9.511

  	
   

  	
  9.511

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Coverage plus

  	
   

  	
  None

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Cytoseal XYL-Xylene based

  	
   

  	
  None

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  200
  ml

  	
   

  	
  0.053

  	
   

  	
  1

  	
   

  	
  0.053

  	
   

  	
  0.053

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
  Dimethyl Formamide,
  (N,N-dimethyl formamide)

  	
   

  	
  68-12-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100ml

  	
   

  	
  0.026

  	
   

  	
  1

  	
   

  	
  0.026

  	
   

  	
  0.026

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  CL, IRR

  	
   

  	
  Dimethyl sulfoxide (DMSO)

  	
   

  	
  67-68-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100
  ml

  	
   

  	
  0.026

  	
   

  	
  2

  	
   

  	
  0.053

  	
   

  	
  0.053

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Eosin Yellowish Solution

  	
   

  	
  17372-87-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  1

  	
   

  	
  0.132

  	
   

  	
  0.132

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Eosin Yellowish Solution

  	
   

  	
  17372-87-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  1

  	
   

  	
  0.132

  	
   

  	
  0.132

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Ethyl alcohol (100%),
  (ethanol)

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1
  pt

  	
   

  	
  0.125

  	
   

  	
  3

  	
   

  	
  0.375

  	
   

  	
  0.375

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  TOX, OHH, CL

  	
   

  	
  Formaldehyde

  	
   

  	
  50-00-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  1

  	
   

  	
  0.132

  	
   

  	
  0.132

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  TOX, OHH, CL

  	
   

  	
  FORMALDEHYDE (4%);
  (FORMALIN)

  	
   

  	
  50-00-0

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  4L

  	
   

  	
  1.0568

  	
   

  	
  1

  	
   

  	
  1.057

  	
   

  	
  1.057

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
  Hematoxylin

  	
   

  	
  None

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  2

  	
   

  	
  0.264

  	
   

  	
  0.264

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
  Hematoxylin

  	
   

  	
  None

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1L

  	
   

  	
  0.528

  	
   

  	
  2

  	
   

  	
  1.056

  	
   

  	
  1.056

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  CL

  	
   

  	
  Histo Clear - (Orange
  terpines), (d-limonene), (Hemo-DL), (butylatedhydroxanisole)

  	
   

  	
  5989-27-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  3.000

  	
   

  	
  3.000

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Methal butane

  	
   

  	
  78-78-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A,
  F

  	
   

  	
  365

  	
   

  	
  2L

  	
   

  	
  0.5284

  	
   

  	
  2

  	
   

  	
  1.057

  	
   

  	
  1.057

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Methanol, (methyl alcohol)

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1
  L

  	
   

  	
  0.264

  	
   

  	
  3

  	
   

  	
  0.792

  	
   

  	
  0.792

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  

 

 

	
  FL

  	
   

  	
  Methanol, (methyl alcohol)

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  4L

  	
   

  	
  1.0568

  	
   

  	
  2

  	
   

  	
  2.114

  	
   

  	
  2.114

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Polyethylene glycol
  octyphenol ether (Triton x100)

  	
   

  	
  9036-91-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  4
  L

  	
   

  	
  1.056

  	
   

  	
  1

  	
   

  	
  1.056

  	
   

  	
  1.056

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Sodium hydroxide, (NaOH)

  	
   

  	
  1310-73-2

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  L

  	
   

  	
  0.264

  	
   

  	
  1

  	
   

  	
  0.264

  	
   

  	
  0.264

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  OX

  	
   

  	
  Sodium Hypochlorite (6.5%),
  (Chlorox Bleach)

  	
   

  	
  7681-52-9

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  Quart

  	
   

  	
  0.25

  	
   

  	
  6

  	
   

  	
  1.500

  	
   

  	
  1.500

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  FL

  	
   

  	
  Xylene

  	
   

  	
  108-38-3

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A,
  C, F

  	
   

  	
  365

  	
   

  	
  4
  L

  	
   

  	
  1.056

  	
   

  	
  1

  	
   

  	
  1.056

  	
   

  	
  1.056

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Ethanol, (ethyl alcohol)

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1gal

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
  2-Mercaptobenzothiazole,
  (2-Mercaptoethanol)

  	
   

  	
  60-24-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  50
  ml

  	
   

  	
  0.013

  	
   

  	
  1

  	
   

  	
  0.013

  	
   

  	
  0.013

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Coverage plus

  	
   

  	
  None

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
  Sodium Hypochlorite (6.5%),
  (Chlorox Bleach)

  	
   

  	
  7681-52-9

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  CRY

  	
   

  	
  Nitrogen

  	
   

  	
  7727-37-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  P

  	
   

  	
  365

  	
   

  	
  42
  gal

  	
   

  	
  42

  	
   

  	
  2

  	
   

  	
  42

  	
   

  	
  42

  	
   

  	
  gal

  	
   

  	
  CY

  	
   

  	
  G

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Ammonium Chloride

  	
   

  	
  12125-02-9

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100g

  	
   

  	
  0.22

  	
   

  	
  1

  	
   

  	
  0.220

  	
   

  	
  0.220

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Ammonium Sulfate

  	
   

  	
  7783-20-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  5kg

  	
   

  	
  11

  	
   

  	
  2

  	
   

  	
  22.000

  	
   

  	
  22.000

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Citric Acid

  	
   

  	
  5949-29-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  FL

  	
   

  	
  Ethanol, (ethyl alcohol)

  	
   

  	
  64-17-5

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  2.000

  	
   

  	
  2.000

  	
   

  	
  gal

  	
   

  	
  SD

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Ethylenediaminetetra acetic
  acid

  	
   

  	
  107-15-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100g

  	
   

  	
  0.22

  	
   

  	
  1

  	
   

  	
  0.220

  	
   

  	
  0.220

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  HCl, H2SO4, OPD, TMB - Waste

  	
   

  	
  Mix

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  2.5
  gal

  	
   

  	
  2.5

  	
   

  	
  1

  	
   

  	
  2.500

  	
   

  	
  2.500

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  HCl, H2SO4, OPD, TMB - Waste

  	
   

  	
  Mix

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  S

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  5
  lb

  	
   

  	
  5

  	
   

  	
  2

  	
   

  	
  10.000

  	
   

  	
  10.000

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  Hydrochloric Acid, (Hydrogen
  chloride)

  	
   

  	
  7647-01-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  ml

  	
   

  	
  0.132

  	
   

  	
  5

  	
   

  	
  0.660

  	
   

  	
  0.660

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Methanol, (methyl alcohol)

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  4L

  	
   

  	
  1.0568

  	
   

  	
  4

  	
   

  	
  4.227

  	
   

  	
  4.227

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  FL

  	
   

  	
  Methanol, (methyl alcohol)

  	
   

  	
  67-56-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  L

  	
   

  	
  F

  	
   

  	
  365

  	
   

  	
  2L

  	
   

  	
  0.5284

  	
   

  	
  1

  	
   

  	
  0.528

  	
   

  	
  0.528

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  3

  	
   

  	
  0

  	
   

  
	
  COR

  	
   

  	
  NaOH (Sodium hydroxide)

  	
   

  	
  1310-73-2

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  1

  	
   

  	
  1.100

  	
   

  	
  1.100

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  TOX, OHH

  	
   

  	
  o-Phenylenediamine (OPD)

  	
   

  	
  615-28-1

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  100
  g

  	
   

  	
  0.22

  	
   

  	
  2

  	
   

  	
  0.440

  	
   

  	
  0.440

  	
   

  	
  lb

  	
   

  	
  CN

  	
   

  	
  A

  	
   

  	
  L

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  TOX

  	
   

  	
  Paraformaldehyde

  	
   

  	
  30525-89-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  g

  	
   

  	
  1.1

  	
   

  	
  1

  	
   

  	
  1.100

  	
   

  	
  1.100

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Potassium Carbonate

  	
   

  	
  584-08-7

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  250g

  	
   

  	
  0.55

  	
   

  	
  1

  	
   

  	
  0.550

  	
   

  	
  0.550

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Potassium phosphate
  monobasic

  	
   

  	
  7778-77-0

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  HTOX, UR

  	
   

  	
  Sodium Azide

  	
   

  	
  26628-22-8

  	
   

  	
  Y

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A,
  C, R

  	
   

  	
  365

  	
   

  	
  100g

  	
   

  	
  0.22

  	
   

  	
  1

  	
   

  	
  0.220

  	
   

  	
  0.220

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  3

  	
   

  
	
  IRR

  	
   

  	
  Sodium borate

  	
   

  	
  1303-96-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  g

  	
   

  	
  1.1

  	
   

  	
  1

  	
   

  	
  1.100

  	
   

  	
  1.100

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Sodium Carbonate anhydrous

  	
   

  	
  497-19-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Sodium Chloride

  	
   

  	
  7647-14-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  2.5kg

  	
   

  	
  5.5

  	
   

  	
  3

  	
   

  	
  16.500

  	
   

  	
  16.500

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
  Sodium Hypochlorite (6.5%),
  (Chlorox Bleach)

  	
   

  	
  7681-52-9

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  1
  gal

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  1

  	
   

  
	
  IRR

  	
   

  	
  Sodium Phosphate dibasic,
  anhydrous

  	
   

  	
  7558-79-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Sodium Phosphate dibasic,
  anhydrous

  	
   

  	
  7558-79-4

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  1

  	
   

  	
  1.100

  	
   

  	
  1.100

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  

 

 

	
  IRR

  	
   

  	
  Sodium Phosphate Monobasic

  	
   

  	
  10049-21-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  125g

  	
   

  	
  0.275

  	
   

  	
  1

  	
   

  	
  0.275

  	
   

  	
  0.275

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OX

  	
   

  	
  Sodium-m-periodate (Sodium
  periodate)

  	
   

  	
  7790-28-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A,
  R

  	
   

  	
  365

  	
   

  	
  25g

  	
   

  	
  0.055

  	
   

  	
  1

  	
   

  	
  0.055

  	
   

  	
  0.055

  	
   

  	
  lb

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  3

  	
   

  
	
  OX

  	
   

  	
  Sodium-m-periodate (Sodium
  periodate)

  	
   

  	
  7790-28-5

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A,
  R

  	
   

  	
  365

  	
   

  	
  100g

  	
   

  	
  0.22

  	
   

  	
  1

  	
   

  	
  0.220

  	
   

  	
  0.220

  	
   

  	
  lb

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  3

  	
   

  
	
  COR

  	
   

  	
  Sulfuric acid, (H2SO4)

  	
   

  	
  7664-93-9

  	
   

  	
  Y

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500mL

  	
   

  	
  0.132

  	
   

  	
  1

  	
   

  	
  0.132

  	
   

  	
  0.132

  	
   

  	
  gal

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  2

  	
   

  
	
  IRR

  	
   

  	
  Tetramethyl Benzidine (TMB)

  	
   

  	
  54827-17-7

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100mL

  	
   

  	
  0.026

  	
   

  	
  3

  	
   

  	
  0.079

  	
   

  	
  0.079

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  L

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Triton X-100

  	
   

  	
  9002-93-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100mL

  	
   

  	
  0.026

  	
   

  	
  2

  	
   

  	
  0.053

  	
   

  	
  0.053

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  2

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  TRIZMA Hydrochloride

  	
   

  	
  1185-53-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Trizma, {TRIS
  (Aminomethane)}, {Tris (hydroxymethyl) amino methane}, {Trizma base (TRIS)}

  	
   

  	
  77-86-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500
  g

  	
   

  	
  1.1

  	
   

  	
  1

  	
   

  	
  1.100

  	
   

  	
  1.100

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Trizma, {TRIS
  (Aminomethane)}, {Tris (hydroxymethyl) amino methane}, {Trizma base (TRIS)}

  	
   

  	
  77-86-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100
  g

  	
   

  	
  0.22

  	
   

  	
  1

  	
   

  	
  0.220

  	
   

  	
  0.220

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  OHH

  	
   

  	
  Sodium acetate, anhydrous

  	
   

  	
  127-09-3

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  500g

  	
   

  	
  1.1

  	
   

  	
  2

  	
   

  	
  2.200

  	
   

  	
  2.200

  	
   

  	
  lb

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
  HTOX

  	
   

  	
  Thimerasal

  	
   

  	
  54-64-8

  	
   

  	
  N

  	
   

  	
  P

  	
   

  	
  S

  	
   

  	
  A,
  C

  	
   

  	
  365

  	
   

  	
  10g

  	
   

  	
  0.022

  	
   

  	
  1

  	
   

  	
  0.022

  	
   

  	
  0.022

  	
   

  	
  lb

  	
   

  	
  GB

  	
   

  	
  A

  	
   

  	
  A

  	
   

  	
  4

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  IRR

  	
   

  	
  Hydrogen peroxide 30%

  	
   

  	
  7722-84-1

  	
   

  	
  N

  	
   

  	
  M

  	
   

  	
  L

  	
   

  	
  A

  	
   

  	
  365

  	
   

  	
  100
  ml

  	
   

  	
  0.026

  	
   

  	
  3

  	
   

  	
  0.079

  	
   

  	
  0.079

  	
   

  	
  gal

  	
   

  	
  PB

  	
   

  	
  A

  	
   

  	
  L

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1

  	
   

  

 

 

EXHIBIT C

 

PERSONAL PROPERTY

 

All furniture currently
in each of the 54 private offices

52 cubicles measuring 8
feet by 8 feet

Tables and chairs
situated in each of four conference rooms

7 lunch room tables and
50 lunch room chairs

bookcases and file
cabinets in one file room

approximately 15 cubicles
of Teknion furniture located in the north side of the Building.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]