Document:

Document

Exhibit 10.32

SIXTH AMENDMENT TO LEASE AGREEMENT
THIS SIXTH AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made and entered into as of December 11, 2020, by and between SCG HARBOR BAY PARKWAY PHASE I, LLC, a Delaware limited liability company (“Landlord”), and EXELIXIS, INC. a Delaware corporation (“Tenant”).
RECITALS
A.    Landlord (as successor in interest to Ascentris 105, LLC, a Colorado limited liability company) and Tenant are parties to that certain Lease Agreement, dated May 2, 2017 (the “Original Lease”), which Original Lease has been previously amended by that certain First Amendment to Lease Agreement dated October 16, 2017, that certain Second Amendment to Lease Agreement dated June 13, 2018, that certain Third Amendment to Lease Agreement dated April 1, 2019, that certain Fourth Amendment to Lease Agreement dated August 30, 2019 and that certain Fifth Amendment to Lease Agreement (the “Fifth Amendment”) dated January 16, 2020 (collectively, the “Lease”).  Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 228,941 rentable square feet (the “Original Premises”) described as (i) 37,544 rentable square feet comprising the entire building located at 1601 Harbor Bay Parkway, (ii) 59,335 rentable square feet comprising the entire building located at 1701 Harbor Bay Parkway, (iii) 58,417 rentable square feet comprising the entire building located at 1801 Harbor Bay Parkway, (iv) 57,476 rentable square feet comprised of the entire building located at 1851 Harbor Bay Parkway, and (v) 16,169 comprised of Suites 150 and 225 of the building located at 1751 Harbor Bay Parkway (the “1751 Building”).
B.    Tenant has requested that additional space containing approximately 25,749 rentable square feet described as Suite 100 on the first floor of the 1751 Building shown on Exhibit A-1 hereto (the “Expansion Space”) be added to the Original Premises and that the Lease be appropriately amended and Landlord is willing to do the same on the following terms and conditions.
    NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:
1.    Expansion and Effective Date.  Effective as of the date (the “Expansion Effective Date”) that is the later of (i) June 1, 2021 and (ii) sixty (60) days following the Expansion Delivery Date (defined below), the Original Premises is increased from approximately 228,941  rentable square feet of the Project to approximately 254,690 rentable square feet of the Project by the addition of the Expansion Space, and from and after the Expansion Effective Date, the Original Premises and the Expansion Space, collectively, shall be deemed the “Premises”, as defined in the Lease, and as used herein.  The Term for the Expansion Space shall commence on the Expansion Effective Date and end on the Expiration Date unless sooner terminated in accordance with the terms of the Lease, as amended hereby. The Expansion Space is subject to all the terms and conditions of the Lease except as expressly modified herein. As used herein, “Expansion Delivery Date” means the date on which Landlord tenders possession of the Expansion Space to Tenant in its current condition and configuration (normal wear and tear excepted) free from occupancy by any party and in good, vacant, broom clean condition.  The Expansion Delivery Date is anticipated to occur on April 1, 2021 (the “Estimated Expansion Delivery Date”).  During the period beginning on the Expansion Delivery Date and ending on the date immediately preceding the Expansion Effective Date, all provisions of the Lease relating to the Expansion Space shall apply as if the Expansion Effective Date had occurred; provided, however, that during such period Tenant shall 

not be required to pay Rent for the Expansion Space other than the payment of Operating Expenses and other charges for services requested by Tenant with respect to the Expansion Space pursuant to the applicable provisions of the Lease. Any delay in the Expansion Delivery Date shall not subject Landlord to any liability for any loss or damage resulting therefrom.  If the Expansion Delivery Date is delayed, the Expiration Date under the Lease shall not be similarly extended.  
Landlord acknowledges that the Expansion Space is currently occupied by a tenant (the “Existing Expansion Space Tenant”) pursuant to a lease (the “Existing Expansion Space Lease”) with a term expiring on March 31, 2021 (the “Existing Expansion Space Lease Expiration Date”).  Landlord shall use commercially reasonable efforts to cause the Existing Expansion Space Tenant to surrender and vacate the Expansion Space on or prior to the Existing Expansion Space Lease Expiration Date with the Expansion Space in its current configuration and otherwise in the condition required by the Existing Expansion Space Lease.  If the Existing Expansion Space Tenant does not so surrender the Expansion Space by the Existing Expansion Space Lease Expiration Date, then Landlord shall use commercially reasonable efforts to cause the Existing Expansion Space Tenant to so surrender and vacate the Expansion Premises, including, without limitation, promptly commencing and pursuing unlawful detainer and eviction proceedings if the Existing Expansion Space Tenant fails to surrender and vacate the Expansion Premises by April 30, 2021.  Notwithstanding anything to the contrary in this Amendment, if Landlord fails to cause the Expansion Delivery Date to occur for any reason by the date that is one hundred twenty (120) days after the Estimated Expansion Delivery Date (the “Outside Delivery Date”), then Tenant shall be entitled to an abatement of Base Rent for the Expansion Space following the Expansion Effective Date in an amount equal to $1,735.41 for every day in the period beginning on the Outside Delivery Date and ending on the Expansion Delivery Date.  Landlord and Tenant acknowledge and agree that the Outside Delivery Date shall not be postponed by the number of days the Expansion Delivery Date is delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, civil disturbances, governmental orders, and other causes beyond the reasonable control of Landlord.
2.    Base Rent.  In addition to Tenant’s obligation to pay Base Rent for the Original Premises, Tenant shall pay Landlord Base Rent for the Expansion Space as follows:
																		
	Period	Rentable Square Footage	Monthly Rate per Square Foot	Annual Rate Per Square Foot	Annual Rent	Monthly Base Rent
	Expansion Effective Date  -  Month 12	25,749	$2.05	$24.60	$633,425.40	$52,785.45
	Month 13 – Month 24	25,749	$2.11	$25.32	$651,964.68	$54,330.39
	Month 25 – Month 36	25,749	$2.17	$26.04	$670,503.96	$55,875.33
	Month 37 – Month 48	25,749	$2.24	$26.88	$692,133.12	$57,677.76
	Month 49 – Month 60	25,749	$2.31	$27.72	$713,762.28	$59,480.19
	Month 61 – Month 72	25,749	$2.38	$28.56	$735,391.44	$61,282.62
	Month 73 – Month 84	25,749	$2.45	$29.40	$757,020.60	$63,085.05
	Month 85 – Month 96	25,749	$2.52	$30.24	$778,649.76	$64,887.48
	Month 97 – Month 108	25,749	$2.60	$31.20	$803,368.80	$66,947.40
	Month 109 – Month 120	25,749	$2.68	$32.16	$828,087.84	$69,007.32
	Month 121 – October 31, 2031	25,749	$2.76	$33.12	$852,806.88	$71,067.24

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All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease, as amended hereby.
Notwithstanding anything in this Lease to the contrary, Tenant shall be entitled to an abatement of Base Rent solely with respect to the Expansion Space in the amount of $52,785.45 per month for the first four full month(s) of the Term with respect to the Expansion Space (the “Abated Expansion Base Rent”).  Only Base Rent with respect to the Expansion Space shall be abated pursuant to this Section, as more particularly described herein, and Base Rent for the Original Premises, Operating Expenses for the entire Premises (including the Expansion Space), all other Rent and other costs and charges specified in the Lease, as amended hereby, shall remain as due and payable pursuant to the provisions of the Lease, as amended hereby.
3.    Additional Security Deposit.  No additional Security Deposit shall be required in connection with this Amendment.
4.    Tenant’s Share.  For the period commencing with the Expansion Effective Date and ending on the Expiration Date, Tenant's Building Share for the Expansion Space is 34.86% and Tenant’s Project Share for the Expansion Space is 6.67%.  Accordingly, Tenant's Building Share is increased to 56.76% of the 1751 Building and Tenant’s Project Share is 65.99%. 
5.    Rentable Area of the Premises.  Effective as of the Expansion Effective Date, the last paragraph of Section 1.1(d) of the Lease is hereby amended by replacing the Rentable Area table set forth in Exhibit A of the Lease, as previously replaced, with the Rentable Area table attached hereto as Exhibit A-2.
6.    Improvements to Expansion Space.
6.1    Condition of Expansion Space.  Except as otherwise provided in this Amendment and the Lease, Tenant agrees to accept the same in its current condition and configuration (normal wear and tear excepted), but otherwise “as is” without any agreements, representations, understandings or obligations on the part of Landlord to perform any alterations, repairs or improvements.  Notwithstanding the foregoing, Landlord agrees that the base Building electrical, heating, ventilation and air conditioning, plumbing, fire/life safety and other systems located in and/or serving the Expansion Space shall be in good working order as of the Expansion Delivery Date.  Except to the extent caused by the acts or omissions of Tenant or any of Tenant’s employees, agents, contractors, representatives or invitees, or by any alterations or improvements performed by or on behalf of Tenant, if such systems are not in good working order as of the date possession of the Expansion Space is delivered to Tenant and Tenant provides Landlord with notice of the same within ninety (90) days following the date Landlord delivers possession of the Expansion Space to Tenant, Landlord shall be responsible for repairing or restoring the same at Landlord’s sole cost and not as an Operating Expense.  
6.2    Responsibility for Improvements to Expansion Space.  Any construction, alterations or improvements to the Expansion Space shall be performed by Tenant in accordance with the Lease and this Amendment, including the provisions of Exhibit B attached hereto.
7.    Other Pertinent Provisions.  Landlord and Tenant agree that, effective as of the date of this Amendment (unless different effective date(s) is/are specifically referenced in this Section), the Lease shall be amended in the following additional respects:
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7.1    Landlord’s Manager’s Address.  Landlord’s Manager’s Address set forth in Section 1.1(m) of the Original Lease is hereby deleted and replaced with the following:

SCG Harbor Bay Parkway Phase I, LLC
c/o JLL
1701 Harbor Bay Parkway, Suite 150
Alameda, CA 94502
7.2    Landlord’s General Address.  Landlord’s General Address set forth in Section 1.1(n) of the Original Lease is hereby deleted and replaced with the following: 
SCG Harbor Bay Parkway Phase I, LLC
c/o Stockbridge Capital Group
Four Embarcadero Center, Suite 3300
San Francisco, CA 94111
Attention: Asset Manager

7.3    Landlord’s Payment Address.  Landlord’s Payment Address set forth in Section 1.1(o) of the Original Lease is hereby deleted and replaced with the following:

By ACH Transfer:

XXXXXX

By Domestic Wire:    

XXXXXX

By Lockbox:

XXXXXX

7.4    Parking.  Effective as of the Expansion Effective Date, Tenant’s unreserved parking spaces shall be increased by seventy-seven (77) unreserved parking spaces at no charge to Tenant for a total of 764 unreserved parking spaces for the Premises.  Except as modified herein, the use of such unreserved parking spaces shall be subject to the terms of the Lease.  Landlord agrees that if all or any portion of the parking lots serving the Project are restriped in a manner that creates additional parking and such additional parking is not needed to satisfy the parking requirements for the BTS Site (as defined in the Fifth Amendment), then such excess parking spaces shall be automatically added to Tenant’s parking rights under the Lease until Tenant’s allocated parking at the Project is in accordance with the Targeted Parking Allocation (as defined in the Fifth Amendment).

7.5    Signage.  Landlord, at its sole cost and expense, shall provide Tenant with initial Building standard signage in the 1751 Building’s lobby, tenant directory and exterior tenant directory. 

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8.    Generator.
8.1    Tenant, shall have the right to use the existing generator serving the Expansion Space (the "Generator") and the existing above ground fuel tank (the “Tank”) to provide emergency additional electrical capacity to the Expansion Space during the Term.  The Generator and the Tank is in the location outlined on Exhibit C attached hereto and made a part hereof (the “Generator Area”).  Tenant accepts the Generator in its as-is condition as of the Expansion Effective Date, and Landlord makes no warranties or representations to Tenant as to the condition of the Generator or the Tank.  Tenant shall comply with all applicable Laws, including Environmental Laws, pertaining to Tenant’s use of the Generator Area.  Tenant shall also be responsible for the cost of all utilities consumed in the operation of the Generator and the Tank.  
8.2    Tenant shall be responsible for assuring that the maintenance, operation and removal of the Generator and the Tank shall in no way damage any portion of the Building or Project.  To the maximum extent permitted by Laws, Landlord shall have no liability to Tenant if the Generator, the Tank or any appurtenances installations are damaged for any reason. Subject to the provisions of Section 9.3 of the Lease, Tenant agrees to be responsible for any damage caused to the Building in connection with the maintenance, operation or removal of the Generator by Tenant and, to indemnify, defend and hold Landlord and the Landlord Parties harmless from all liabilities, obligations, damages, penalties, claims, costs, charges and expenses, including, without limitation, reasonable architects' and attorneys' fees (if and to the extent permitted by Laws), which may be imposed upon, incurred by, or asserted against Landlord or any of the Landlord Parties in connection with the maintenance, operation or removal of the Generator and the Tank by Tenant, including, without limitation, any environmental and hazardous materials claims; provided, that Landlord shall not be released or indemnified from any such liabilities, obligations, damages, penalties, claims, costs, charges and expenses arising from the maintenance, operation or location of the Generator and the Tank prior to the Expansion Delivery Date, including, without limitation, any environmental and hazardous materials claims arising from the maintenance, operation or location of the Generator and the Tank prior to the Expansion Delivery Date.
8.3    Tenant shall be responsible for the operation, cleanliness, maintenance and removal of the Generator and the Tank and the appurtenances, all of which shall remain the personal property of Tenant, and shall be removed by Tenant at its own expense at the expiration or earlier termination of the Lease.  Tenant shall repair any damage caused by such removal, including the patching of any holes to match, as closely as possible, the color surrounding the area where the Generator, Tank and appurtenances were attached. Such maintenance and operation shall be performed in a manner to avoid any unreasonable interference with any other tenants or Landlord.   Tenant shall have no right to make any changes, alterations, additions, decorations or other improvements to the Generator Area without Landlord’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed. Tenant agrees to maintain the Generator and the Tank, including without limitation, any enclosure installed around the Generator and the Tank in good condition and repair.  Tenant shall be responsible for performing any maintenance and improvements to any enclosure surrounding the Generator and the Tank so as to keep such enclosure in good condition.
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8.4    Tenant, subject to the rules and regulations enacted by Landlord, shall have access to the Generator and the Tank and its surrounding area for the purpose of installing, repairing, maintaining and removing said Generator and the Tank.
8.5    Tenant shall be permitted to use the Generator Area solely for the maintenance and operation of the Generator and the Tank, and the Generator, Tank and Generator Area are solely for the benefit of Tenant.  All electricity generated by the Generator may only be consumed by Tenant in the Expansion Space.  Landlord shall have no obligation to provide any services, including, without limitation, electric current, to the Generator Area.  Tenant shall have no right to sublet the Generator Area or to assign its interest therein except in connection with an assignment or sublease of the Expansion Space.
9.    Miscellaneous.
9.1    This Amendment, including Exhibit A-1 (Outline and Location of Expansion Space) and Exhibit A-1, Exhibit B, and Exhibit C attached hereto, sets forth the entire agreement between the parties with respect to the matters set forth herein.  There have been no additional oral or written representations or agreements.  
9.2    Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.  In the case of any inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control.  The capitalized terms used in this Amendment shall have the same definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Amendment.
9.3    Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant.  Landlord shall not be bound by this Amendment until Landlord has executed and delivered the same to Tenant.
9.4    Landlord and Tenant each hereby represents that each has dealt with no broker other than Kidder Mathews, representing Tenant, and Cushman & Wakefield of California, Inc., representing Landlord, in connection with this Amendment.  Tenant agrees to indemnify and hold Landlord, its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents (collectively, the “Landlord Related Parties”) harmless from all claims of any other brokers claiming to have represented Tenant in connection with this Amendment.  Landlord shall pay Kidder Mathews and Cushman & Wakefield of California, Inc. a market brokerage commission pursuant to a separate written agreement.
9.5    Each of Landlord and Tenant represents hereby that the individuals executing this Amendment on its behalf have the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting.  Tenant hereby represents and warrants that Tenant is not (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: “List of Specially Designated Nationals and Blocked Persons.” 
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9.6    Signatures to this Amendment transmitted by telecopy or electronic signatures shall be valid and effective to bind the party so signing.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and same agreement.
9.7    If Tenant (or any party claiming by, through or under Tenant) pays directly to the provider for any energy consumed at the Building, Tenant, promptly upon request, shall deliver to Landlord (or, at Landlord’s option, execute and deliver to Landlord an instrument enabling Landlord to obtain from such provider) any data about such consumption that Landlord, in its reasonable judgment, is required to disclose to a prospective buyer, tenant or mortgage lender under California Public Resources Code § 25402.10 or any similar law.
9.8    Pursuant to California Civil Code Section 1938, Landlord hereby notifies Tenant that as of the date of this Amendment, the Premises have not undergone inspection by a “Certified Access Specialist” (“CASp”) to determine whether the Premises meet all applicable construction-related accessibility standards under California Civil Code Section 55.53.  Landlord hereby discloses pursuant to California Civil Code Section 1938 as follows: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant.  The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”  Landlord and Tenant hereby acknowledge and agree that in the event that Tenant elects to perform a CASp inspection of the Premises hereunder (the “Inspection”), such Inspection shall be (a) performed at Tenant’s sole cost and expense, (b) limited to the Premises and (c) performed by a CASp who has been approved or designated by Landlord prior to the Inspection.  Any Inspection must be performed in a manner which minimizes the disruption of business activities in the Building, and at a time reasonably approved by Landlord.  Landlord reserves the right to be present during the Inspection.  Tenant agrees to: (i) promptly provide to Landlord a copy of the report or certification prepared by the CASp inspector upon request (the “Report”), (ii) keep the information contained in the Report confidential, except to the extent required by Law, or to the extent disclosure is needed in order to complete any necessary modifications or improvements required to comply with all applicable accessibility standards under state or federal Law, as well as any other repairs, upgrades, improvements, modifications or alterations required by the Report or that may be otherwise required to comply with applicable Laws or accessibility requirements  (the “Access Improvements”).  If Tenant performs an Inspection, Tenant shall be solely responsible for the cost of Access Improvements to the Premises or the Building necessary to correct any such violations of construction-related accessibility standards identified by such Inspection as required by Law, which Access Improvements may, at Landlord’s option, be performed in whole or in part by Landlord at Tenant’s expense, payable as Additional Rent within ten (10) days following Landlord’s demand.  

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[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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    IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day and year first above written.
						
	LANDLORD:	TENANT:
		
	SCG HARBOR BAY PARKWAY PHASE I, LLC,
a Delaware limited liability company
	EXELIXIS, INC. 
a Delaware corporation 

	By: /s/ Meghan Concannon	By: /s/ Michael M. Morrissey
	Name:  Meghan Concannon
	Name: Michael M. Morrissey

	Title:  Vice President
	Title:  President and  Chief Executive Officer

	Dated: 12/14/2020
	Dated: 12/11/2020

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EXHIBIT A - OUTLINE AND LOCATION OF EXPANSION SPACE

attached to and made a part of the Amendment dated as of December 11, 2020, between SCG HARBOR BAY PARKWAY PHASE I, LLC, a Delaware limited liability company, as Landlord and EXELIXIS, INC. a Delaware corporation, as Tenant

Exhibit A is intended only to show the general layout of the Expansion Space as of the beginning of the Expansion Effective Date.  It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations.  It is not to be scaled; any measurements or distances shown should be taken as approximate.

     A-1

EXHIBIT A-2 – PLANS SHOWING THE PREMISES AND TABLE OF RENTABLE AREAS OF THE PREMISES

attached to and made a part of the Amendment dated as of December 11, 2020, between SCG HARBOR BAY PARKWAY PHASE I, LLC, a Delaware limited liability company, as Landlord and EXELIXIS, INC. a Delaware corporation, as Tenant

     A-2

     A-2

     A-2

     A-2

     A-2

     A-2

     A-2

												
	Table of Rentable Areas of The Premises
				
	Building	Suite	Building RSF	Premises RSF
	1601		37,544	37,544
	1701	100	59,335	4,140
	1701	125	59,335	2,355
	1701	115-200	59,335	51,858
	1701	150	59,335	982
	1751	150-225	73,854	16,169
	1751	100	73,854	25,749
	1801		58,417	58,417
	1851		57,476	57,476
				
		Total RSF of Premises:	254,690

     A-2

EXHIBIT B – TENANT ALTERATIONS

attached to and made a part of the Amendment dated as of December 11, 2020, between SCG HARBOR BAY PARKWAY PHASE I, LLC, a Delaware limited liability company, as Landlord and EXELIXIS, INC. a Delaware corporation, as Tenant

As used in this Exhibit B, the “Premises” shall be deemed to mean the Expansion Space, as defined in the Amendment to which this Exhibit B is attached.
1.    Tenant shall have the right to perform alterations and improvements in the Premises (the “Tenant Alterations”) pursuant to this Exhibit B and the Lease, provided, however, that the provisions of Exhibit B to the Original Lease, as modified, shall not apply to the Tenant Alterations.  Notwithstanding the foregoing, Tenant and its contractors shall not have the right to perform the Tenant Alterations in the Premises unless and until Tenant has complied with all of the terms and conditions of Section 7 of the Original Lease, including, without limitation, approval by Landlord of the final plans for the Tenant Alterations and the contractors to be retained by Tenant to perform such Tenant Alterations. Tenant shall be responsible for all elements of the design of Tenant’s plans (including, without limitation, compliance with law, functionality of design, the structural integrity of the design, the configuration of the Premises and the placement of Tenant’s furniture, appliances and equipment), and Landlord’s approval of Tenant’s plans shall in no event relieve Tenant of the responsibility for such design.  In addition to the foregoing and except as otherwise provided in the Amendment and this Exhibit B, Tenant shall be solely liable for all costs and expenses associated with or otherwise caused by Tenant’s performance and installment of the Tenant Alterations (including, except as otherwise provided in the Amendment and this Exhibit B, without limitation, any legal compliance requirements arising outside of the Premises).  Landlord’s approval of the contractors to perform the Tenant Alterations shall not be unreasonably withheld.  If Landlord fails to respond to Tenant’s written request for approval of plans and specifications within five (5) days, Tenant shall provide a second written notice to Landlord.  Failure of Landlord to approve or disapprove any submission of plans and specification by Tenant within five (5) days following the second written notice shall be deemed to constitute approval of such submission.  The parties agree that Landlord’s approval of the general contractor to perform the Tenant Alterations shall not be considered to be unreasonably withheld if any such general contractor (a) does not have trade references reasonably acceptable to Landlord, (b) does not maintain insurance as required pursuant to the terms of the Lease, (c) does not have the ability to be bonded for the work in an amount of no less than one hundred fifty percent (150%) of the total estimated cost of the Tenant Alterations, (d) does not provide current financial statements reasonably acceptable to Landlord, (e) does not execute the Responsible Contractor Policy Statement provided by Landlord, or (f) is not licensed as a contractor in the state/municipality in which the Premises is located.  Tenant acknowledges the foregoing is not intended to be an exclusive list of the reasons why Landlord may reasonably withhold its consent to a general contractor.  Notwithstanding the foregoing, Landlord shall not withhold approval of any architect, contractor or subcontractor that is currently or has previously performed alterations in the Premises and was approved by the Landlord executing this Amendment.

2.    Landlord agrees to contribute the sum of $1,416.195.00 (the “Allowance”) toward the cost of performing the Tenant Alterations in preparation of Tenant’s occupancy of the Premises.   The Allowance may only be used for the cost of preparing design and construction documents and mechanical and electrical plans for the Tenant Alterations and for hard and soft costs in connection with the Tenant Alterations, including, without limitation, permit fees and project management fees.  The Allowance shall be paid to Tenant or, at Tenant’s request, to the order of the general contractor that performs the Tenant Alterations, in periodic disbursements within thirty (30) days after receipt of the following 
     B-1

documentation: (a) an application for payment and sworn statement of contractor substantially in the form of AIA Document G-702 covering all work for which disbursement is to be made to a date specified therein; (b) a certification from an AIA architect substantially in the form of the Architect’s Certificate for Payment which is located on AIA Document G702, Application and Certificate of Payment; (c) contractor’s, subcontractor’s and material supplier’s waivers of liens which shall cover all Tenant Alterations for which disbursement is being requested and all other statements and forms required for compliance with the mechanics’ lien laws of the state in which the Premises is located together with all such invoices, contracts, or other supporting data as Landlord or Landlord’s Mortgagee may reasonably require; and (d) a request to disburse from Tenant containing an approval by Tenant of the work done.  Upon completion of the Tenant Alterations, Tenant shall furnish Landlord with:  (i) general contractor and architect’s completion affidavits; (ii) full and final waivers of lien; and (iii)  as-built plans of the Tenant Alterations.  In no event shall Landlord be required to disburse the Allowance more than one time per month.  Notwithstanding anything herein to the contrary, Landlord shall not be obligated to disburse any portion of the Allowance during the continuance of an uncured default beyond notice and cure periods under the Lease, and Landlord’s obligation to disburse shall only resume when and if such default is cured.

3.    In no event shall the Allowance be used for the purchase of equipment, furniture or other items of personal property of Tenant.  Landlord shall be entitled to deduct from the Allowance a construction management fee for Landlord’s oversight of the Tenant Alterations in an amount equal to one and one-half percent (1.5%) of the Allowance. Notwithstanding anything to the contrary set forth herein, Tenant shall be entitled to apply up to $128,745.00 of the Allowance as a credit against the next installment(s) of Base Rent payable by Tenant under the Lease, as amended hereby by delivery of written notice to Landlord no later than December 31, 2023.  Tenant shall be responsible for all applicable state sales or use taxes, if any, payable in connection with the Tenant Alterations.

4.    In no event shall Tenant be required to remove the Tenant Alterations at the expiration or earlier termination of the Lease except for specialized trade fixtures and equipment installed by Tenant and designated as such on the plans and specifications submitted by Tenant for Landlord’s approval (the “Specialized Tenant Improvements”) and designated by Landlord in writing for removal concurrently with Landlord’s approval of such plans and specifications. 

5.    If, during Tenant’s construction of the Tenant Alterations, Tenant discovers within the Expansion Space any Hazardous Materials for which Tenant is not liable under the terms of the Lease, then Landlord, at Landlord’s expense, will remediate such Hazardous Materials to the extent required by applicable laws and to the extent necessary for Tenant’s use of the Expansion Space or construction of the Tenant Alterations.  If such remediation delays substantial completion of the Tenant Alterations beyond the later of the projected date of substantial completion reflected in Tenant’s construction schedule (which Tenant shall have delivered to Landlord) and the Expansion Effective Date, then Tenant shall be entitled to a per diem abatement of Base Rent for the Expansion Space for each day that substantial completion of the Tenant Alterations is actually delayed as a result of Landlord’s remediation.  

6.    This Exhibit B shall not be deemed applicable to any additional space added to the Premises at any time or from time to time, whether by any options under the Lease or otherwise, or to any portion of the original Premises or any additions to the Premises in the event of a renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease.

     B-2

EXHIBIT C – GENERATOR AREA

attached to and made a part of the Amendment dated as of December 11, 2020, between SCG HARBOR BAY PARKWAY PHASE I, LLC, a Delaware limited liability company, as Landlord and EXELIXIS, INC. a Delaware corporation, as Tenant

     C-1Document

Exhibit 10.12

Alnylam Pharmaceuticals, Inc.
Annual Incentive Program

Purpose
The People, Culture and Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Alnylam Pharmaceuticals, Inc. (“Alnylam”) has recommended and the Board has approved this Annual Incentive Program (the “Bonus Plan”) to incent and reward eligible employees of Alnylam or any of its affiliates (subject to applicable local laws) (collectively, the “Company”), based upon their performance relative to pre-established corporate and individual goals and objectives, and to retain Company employees by establishing an important element of the Company’s total rewards package consistent with the Company’s compensation philosophy and operating strategy. 
Eligibility
At the Company’s discretion, all regular employees who are not otherwise participating in any field-based incentive plan established by the Company, and who are employed by the Company both on or before October 1 of a calendar year (each, a “Plan Year”) and on the date of payment of any Bonus Award (as defined herein) hereunder, (collectively, “Plan Participants”),  may be eligible to receive an annual cash bonus (a “Bonus Award”) based upon achievement of individual and/or corporate goals and objectives for such Plan Year.   The Committee may, in its discretion, include employees who join the Company or one of its affiliates after October 1 of a Plan Year as Plan Participants.  Bonus Awards for Plan Participants who have been employed with the Company or one of its affiliates for less than one year as of the last day of a Plan Year may be pro-rated by the Committee, in its discretion.  In addition, Bonus Awards for Plan Participants who have been on an approved leave of absence for in excess of twelve consecutive weeks during the applicable Plan Year may be pro-rated by the Committee, in its discretion (subject to applicable local laws).
Goals
The corporate goals for each Plan Year, including the percentage weighting for such goals, shall be proposed by the Company’s executive officers, reviewed by the Committee and approved by the Board.  Except as the Committee may otherwise determine, Bonus Awards for the Company’s executive officers will be based entirely upon achievement of the corporate goals.  Individual objectives for all other Plan Participants shall be approved by the employees’ direct supervisor.
Awards
Under the Bonus Plan, each Plan Participant shall have an established target award (a “Target Award”). For each salaried/exempt Plan Participant, the Target Award represents a percentage of the Plan Participant’s annual base salary. For each hourly/non-exempt Plan Participant, the Target Award represents a percentage of the Plan Participant’s combined straight-time wages and overtime wages (including any applicable shift differential). Unless the Committee otherwise determines, the Target Award for any salaried/exempt Plan Participant shall be based upon the salaried/exempt Plan Participant’s base salary and job level as of the last day of the applicable Plan Year.

Bonus Awards under the Bonus Plan, if any, will be determined by first establishing a bonus pool (the “Bonus Pool”).  The Bonus Pool will be calculated by (1) aggregating each Plan Participant’s Target Award, (2) multiplying that sum by one hundred and four percent (104%), and then (3) multiplying that sum by a modifier established by the Board that is based on the Company’s performance as measured against the applicable Plan Year’s corporate goals (the “Corporate Performance Level”).  The Board has discretion to determine the Corporate Performance Level. The Committee shall also have the discretion to set a “minimum” threshold and/or a “maximum” amount with respect to the Corporate Performance Level.
The Bonus Pool will then be allocated among the Plan Participants based upon consideration of each Plan Participant’s title/level and salary or straight-time hourly pay rate (as reflected by their Target Award percentage) and (i) with respect to Plan Participants who are executive officers, the Corporate Performance Level (except as the Committee may otherwise determine), and (ii) with respect to all other Plan Participants, their year-end performance ratings for such Plan Year, which shall be determined by their performance against their individual objectives for such Plan Year, overall job performance and support of the Company’s core values. 
The Committee retains the discretion under the Bonus Plan to adjust upward or downward any Bonus Award and/or the Bonus Pool as it deems appropriate.  
By no later than January 31 of the year following the applicable Plan Year, the Committee, and the full Board of Directors, as applicable, plans to evaluate the Company’s performance against the established corporate goals, establish the Bonus Pool, if any, available under the Bonus Plan and approve the individual Bonus Awards for each executive officer and each other employee at the level of Senior Vice President or higher.  The Company’s management will evaluate the individual performance and contributions of the other Plan Participants and determine the amount of the Bonus Awards to be granted from the Bonus Pool to such other Plan Participants.  This determination is expected to be made on or before February 28 of the year following the applicable Plan Year and any Bonus Awards granted to Plan Participants under the Bonus Plan shall be made in cash and paid before March 15 of the year following the applicable Plan Year.
Administration; Amendment
The Bonus Plan is administered by the Committee. The Committee has full power and authority to interpret and make all decisions regarding the Bonus Plan, and its decisions and interpretations are final and binding on all Plan Participants. The Committee or the full Board may amend the Bonus Plan in any manner at any time without the consent of any Plan Participant.

    
Approved by Board of Directors March 8, 2018
Amended October 7, 2019
Further Amended December 1, 2020

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