Document:

EXHIBIT
4.3

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE. 
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM.  THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE
IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

COMMON STOCK PURCHASE WARRANT

 

	
  Warrant No. CS-24

  	
   

  	
  200,000
  Shares

  
	
  March 31, 2009

  	
   

  	
   

  

 

RIGEL PHARMACEUTICALS, INC.

 

WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK

 

1.             Issuance.  For value received, this Warrant is issued to
HCP LIFE SCIENCE REIT, INC., a Maryland
corporation, by RIGEL PHARMACEUTICALS, INC., a Delaware corporation (hereinafter
with its successors called the “Company”)
in partial consideration for that certain Amendment No. Four to
Build-to-Suit Lease, dated as of the date hereof, between the Company and HCP BTC, LLC, as landlord (“Amendment
Four”).

 

2.             Purchase Price; Number of Shares.  The registered holder of this Warrant (the “Holder”), commencing on the date hereof,
is entitled upon surrender of this Warrant with the subscription form annexed
hereto duly executed, at the principal office of the Company, to purchase from
the Company two hundred thousand (200,000) fully paid and nonassessable shares
(the “Shares”) of common stock,
$.001 par value per share, of the Company (the “Common
Stock”), at a price per share of $6.61 (the “Purchase Price”).  Until such time as this Warrant is exercised
in full or expires, the Purchase Price and the securities issuable upon
exercise of this Warrant are subject to adjustment as hereinafter
provided.  The person or persons under
whose name or names any certificate representing shares of Common Stock is
issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant
is exercised with respect to such shares, whether or not the transfer books of
the Company shall be closed.

 

3.             Payment of Purchase Price.  The Purchase Price may be paid (i) in
cash or by check; (ii) by the surrender by the Holder to the Company of
any promissory notes or other obligations issued by the Company, with all such
notes and obligations so surrendered being credited against the Purchase Price
in an amount equal to the principal amount thereof plus accrued interest to the
date of surrender; or (iii) by any combination of the foregoing.

 

1

 

4.             Net Issue
Election.  The Holder may
elect to receive, without the payment by the Holder of any additional
consideration, shares of Common Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company,
with the net issue election notice annexed hereto duly executed, at the
principal office of the Company. 
Thereupon, the Company shall issue to the Holder such number of fully
paid and nonassessable shares of Common Stock as is computed using the
following formula:

 

 

	
  where:

  	
   

  	
  X =

  	
   

  	
  the number of shares of Common Stock to be issued to
  the Holder pursuant to this Section 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Y
  =

  	
   

  	
  the number of shares of
  Common Stock covered by this Warrant in respect of which the net issue
  election is made pursuant to this Section 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A
  =

  	
   

  	
  the Fair Market Value
  (defined below) of one share of Common Stock, as determined at the time the
  net issue election is made pursuant to this Section 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B
  =

  	
   

  	
  the Purchase Price in
  effect under this Warrant at the time the net issue election is made pursuant
  to this Section 4.

  

 

“Fair Market Value” of a share of Common Stock as of a
particular date (the “Determination Date”)
shall mean the average of the closing or last reported sale prices of the
Common Stock as reported on the Nasdaq National Market over the 30-day period
ending five business days prior to the Determination Date; provided, however, that (i) if the
Common Stock is neither traded on the Nasdaq National Market nor on a national
securities exchange, then Fair Market Value shall be the average of the closing
or last reported sale prices of the Common Stock over the 30-day period ending
five business days prior to the Determination Date reflected in the
over-the-counter market, as reported by the National Quotation Bureau, Inc.
or any organization performing a similar function, or if closing prices are not
then routinely reported for the over-the-counter market, the average of the
last bid and asked prices of the Common Stock over the 30-day period ending
five business days prior to the Determination Date, and (ii) if there is
no public market for the Common Stock, then Fair Market Value shall be
determined in good faith by the Company’s Board of Directors.

 

5.             Partial Exercise.  This Warrant may be exercised in part, and
the Holder shall be entitled to receive a new warrant, which shall be dated as
of the date of this Warrant, covering the number of shares in respect of which
this Warrant shall not have been exercised.

 

6.             Fractional Shares.  In no event shall any fractional share of
Common Stock be issued upon any exercise of this Warrant.  If, upon exercise of this Warrant as an
entirety, the Holder would, except as provided in this Section 6, be
entitled to receive a fractional share of Common Stock, then the Company shall
pay in lieu thereof, the Fair Market Value of such fractional share in cash.

 

2

 

7.             Expiration Date.  This Warrant or any Successor Warrant (as
defined in Section 10 below) shall remain exercisable until the close of
business on March 31, 2016, when it shall expire and thereafter be void.

 

8.             Reserved Shares; Valid Issuance.  The Company covenants that it will at all
times from and after the date hereof reserve and keep available such number of
its authorized shares of Common Stock, free from all preemptive or similar
rights therein, as will be sufficient to permit the exercise of this Warrant in
full into shares of Common Stock upon such exercise.  The Company further covenants that such
shares as may be issued pursuant to such exercise will, upon issuance, be duly
and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof.

 

9.             Stock Splits and Dividends.  If after the date hereof the Company shall
subdivide the Common Stock, by split-up or otherwise, or combine the Common
Stock, or issue additional shares of Common Stock in payment of a stock
dividend on the Common Stock, the number of shares of Common Stock issuable on
the exercise of this Warrant shall forthwith be proportionately increased in
the case of a subdivision or stock dividend, or proportionately decreased in
the case of a combination, and the Purchase Price shall forthwith be
proportionately decreased in the case of a subdivision or stock dividend, or
proportionately increased in the case of a combination.

 

10.          Mergers and Reclassifications.

 

(a)           If
after the date hereof the Company shall enter into any Reorganization (as
hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from
the Company or its successor shall be delivered to the Holder (a “Successor Warrant”), so that the Holder shall thereafter
have the right to purchase, at a total price not to exceed that payable upon
the exercise of this Warrant in full, the kind and amount of shares of stock
and other securities and property receivable upon such Reorganization by a
holder of the number of shares of Common Stock which might have been purchased
by the Holder immediately prior to such Reorganization, and in any such case
appropriate provisions shall be made with respect to the rights and interest of
the Holder to the end that the provisions hereof (including without limitation,
provisions for the adjustment of the Purchase Price and the number of shares
issuable hereunder and the provisions relating to the net issue election) shall
thereafter be applicable in relation to any shares of stock or other securities
and property thereafter deliverable upon exercise hereof.

 

(b)           For
the purposes of this Section 10:

 

(i)            the term “Acquisition
Transaction” shall include without limitation any consolidation of
the Company with, or merger of the Company into, another corporation or other
business organization (other than a merger in which the Company is the
surviving corporation and which does not result in any reclassification or
change of the outstanding Common Stock); and

 

3

 

(ii)           the term “Reorganization”
shall include without limitation any reclassification, capital reorganization
or change of the Common Stock (other than as a result of a subdivision,
combination or stock dividend provided for in Section 9 hereof), an
Acquisition Transaction, or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the
Company.

 

11.          Certificate of Adjustment.  Whenever the Purchase Price is adjusted, as
herein provided, the Company shall promptly deliver to the Holder a certificate
of the Company’s Chief Financial Officer setting forth the Purchase Price after
such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

 

12.          Notices of Record Date, Etc.  In the event of:

 

(a)           any taking by the Company of
a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend or
other distribution, or any right to subscribe for, purchase, sell or otherwise
acquire or dispose of any shares of stock of any class or any other securities
or property, or to receive any other right;

 

(b)           any reclassification of the
capital stock of the Company, capital reorganization of the Company,
consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

 

(c)           any voluntary or involuntary
dissolution, liquidation or winding-up of the Company;

 

then in each such event the Company will
provide or cause to be provided to the Holder a written notice thereof.  Such notice shall be provided at least
fifteen (15) calendar days prior to the date specified in such notice on
which any such action is to be taken.

 

13.          Representations, Warranties and
Covenants.  This
Warrant is issued and delivered by the Company and accepted by each Holder on
the basis of the following representations, warranties and covenants made by
the Company:

 

(a)           The Company has all
necessary authority to issue, execute and deliver this Warrant and to perform
its obligations hereunder.  This Warrant
has been duly authorized, issued, executed and delivered by the Company and is
the valid and binding obligation of the Company, enforceable in accordance with
its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws of general application affecting the
enforcement of Holder’s rights or by general equity principles or public policy
concerns.

 

(b)           The shares of Common Stock
issuable upon the exercise of this Warrant have been duly authorized and
reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and nonassessable.

 

(c)           The issuance, execution and
delivery of this Warrant do not, and the issuance of the shares of Common Stock
upon the exercise of this Warrant in accordance with 

 

4

 

the
terms hereof will not, (i) violate or contravene the Company’s Amended and
Restated Certificate of Incorporation or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company, (ii) violate,
contravene or result in a breach or default under any material contract,
agreement or instrument to which the Company is a party or by which the Company
or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity.

 

14.          Amendment and Waiver.  The terms of this Warrant may be amended,
modified or waived only with the written consent of the party against which
enforcement of the same is sought.

 

15.          Representations and Covenants of the
Holder.  This Common Stock Purchase
Warrant has been entered into by the Company in reliance upon the following
representations and covenants of the Holder, which by its acceptance hereof the
Holder hereby confirms:

 

(a)           Investment Purpose.  The right to acquire Common Stock or the
Common Stock issuable upon exercise of the Holder’s rights contained herein
will be acquired for investment and not with a view to the sale or distribution
of any part thereof, and the Holder has no present intention of selling or
engaging in any public distribution of the same except pursuant to a
registration or exemption.

 

(b)           Accredited Investor.  Holder is an “accredited investor” within the
meaning of the Securities and Exchange Commission’s Rule 501 of
Regulation D, as presently in effect.

 

(c)           Private Issue.  The Holder understands (i) that the
Common Stock issuable upon exercise of the Holder’s rights contained herein is
not registered under the 1933 Act or qualified under applicable state
securities laws on the ground that the issuance contemplated by this Warrant
will be exempt from the registration and qualification requirements thereof and
(ii) that the Company’s reliance on such exemption is predicated on the
representations set forth in this Section 15.

 

(d)           Financial Risk.  The Holder has such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of its investment and has the ability to bear the economic risks of its
investment.

 

16.          Notices, Transfers, Etc.

 

(a)           Any notice or written
communication required or permitted to be given to the Holder may be given by
certified mail or delivered to the Holder at the address most recently provided
by the Holder to the Company.

 

(b)           Subject to compliance with
applicable federal and state securities laws, this Warrant may be transferred
by the Holder with respect to any or all of the shares purchasable
hereunder.  Upon surrender of this
Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the
Company shall issue a new warrant of the same denomination to the
assignee.  Upon surrender of 

 

5

 

this
Warrant to the Company, together with the assignment hereof properly endorsed,
by the Holder for transfer with respect to a portion of the shares of Common
Stock purchasable hereunder, the Company shall issue a new warrant to the
assignee, in such denomination as shall be requested by the Holder hereof, and
shall issue to such Holder a new warrant covering the number of shares in
respect of which this Warrant shall not have been transferred.

 

(c)           In case this Warrant shall
be mutilated, lost, stolen or destroyed, the Company shall issue a new warrant
of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant
or (ii) in lieu of any Warrant lost, stolen or destroyed, upon receipt of
an affidavit of the Holder or other evidence reasonably satisfactory to the
Company of the loss, theft or destruction of such Warrant and an indemnification
of loss by the Holder in favor of the Company.

 

17.          Transfer to Comply with the Securities
Act of 1933.  This Warrant
may not be exercised and neither this Warrant nor any of the Shares, nor any
interest in either, may be offered, sold, assigned, pledged, hypothecated,
encumbered or in any other manner transferred or disposed of, in whole or in
part, except in compliance with applicable United States federal and state
securities laws and the terms and conditions hereof.  Each Warrant shall bear a legend in
substantially the same form as the legend set forth on the first page of
this Warrant.  Each certificate for
Shares issued upon exercise of this Warrant, unless at the time of exercise
such Shares are acquired pursuant to a registration statement that has been
declared effective under the Securities Act of 1933, as amended (the “Securities
Act”), and applicable blue sky laws, shall bear a legend substantially in the
following form:

 

THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM. 
THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY
PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

 

Any certificate for any
Shares issued at any time in exchange or substitution for any certificate for
any Shares bearing such legend (except a new certificate for any Shares issued
after the acquisition of such Shares pursuant to a registration statement that
has been declared effective under the Securities Act) shall also bear such
legend unless, in the opinion of counsel for the Company, the Shares
represented thereby need no longer be subject to the restriction contained
herein.  The provisions of this Section 17
shall be binding upon all subsequent holders of certificates for Shares bearing
the above legend and all subsequent holders of this Warrant, if any.

 

6

 

18.          Rights of Holder.  Holder shall not, by virtue hereof, be
entitled to any rights of a stockholder of the Company, either at law or
equity, and the rights of Holder are limited to those expressed in this
Warrant.  Nothing contained in this Warrant
shall be construed as conferring upon Holder hereof the right to vote or to
consent or to receive notice as a stockholder of the Company on any matters or
with respect to any rights whatsoever as a stockholder of the Company.  No dividends or interest shall be payable or
accrued in respect of this Warrant or the interest represented hereby or the
Shares purchasable hereunder until, and only to the extent that, this Warrant
shall have been exercised in accordance with its terms.

 

19.          “Market Stand Off” Agreement.  Holder hereby agrees not to sell, transfer,
make any short sale of, grant any option for the purchase of, or enter into any
hedging or similar transaction with the same economic effect as a sale of, any
Common Stock (or other securities) of the Company held by Holder for a period
specified by a representative of the underwriters of Common Stock (or other
securities) of the Company not to exceed ninety (90) days following the
effective date of a registration statement of the Company filed under the
Securities Act; provided that all
officers and directors of the Company and each holder of that number of shares
of Common Stock equal to or greater than the number of Shares then issuable
upon exercise of this Warrant enter into similar agreements.

 

20.          No Impairment.  The Company will not, by amendment of its
Certificate or through any reclassification, capital reorganization,
consolidation, merger, sale or conveyance of assets, dissolution, liquidation,
issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such action as may be necessary or appropriate in
order to protect the rights of the Holder.

 

21.          Governing Law.  The provisions and terms of this Warrant
shall be governed by and construed in accordance with the internal laws of the
State of California.

 

22.          Successors and Assigns.  This Warrant shall be binding upon the
Company’s successors and assigns and shall inure to the benefit of the Holder’s
successors, legal representatives and permitted assigns.

 

23.          Business Days.  If the last or appointed day for the taking
of any action required or the expiration of any rights granted herein shall be
a Saturday or Sunday or a legal holiday in California, then such action may be
taken or right may be exercised on the next succeeding day which is not a
Saturday or Sunday or such a legal holiday.

 

7

 

IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed by its duly
authorized officer and to be dated as of the date first written above.

 

 

	
   

  	
  Company:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RIGEL
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James M. Gower

  
	
   

  	
   

  	
  James M. Gower

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

 

SUBSCRIPTION

 

	
  To:

  	
   

  	
   

  	
  Date:

  	
   

  

 

 

The undersigned hereby
subscribes for                               
shares of Common Stock covered by this Warrant. 
The certificate(s) for such shares shall be issued in the name of
the undersigned or as otherwise indicated below:

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name for Registration

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mailing Address

  

 

 

NET ISSUE ELECTION NOTICE

 

	
  To:

  	
   

  	
   

  	
  Date:

  	
   

  

 

The undersigned hereby
elects under Section 4 to surrender the right to purchase                                       
shares of Common Stock pursuant to this Warrant.  The certificate(s) for such shares
issuable upon such net issue election shall be issued in the name of the
undersigned or as otherwise indicated below:

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name for Registration

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mailing Address

  

 

 

ASSIGNMENT

 

	
  For
  value received 

  	
   

  	
  hereby
  sells, assigns

  
	
  and transfers unto

  	
   

  
	
   

  
	
   

  
	
  [Please
  print or type the name and address of Assignee]

  
	
   

  
	
   

  
	
  the within Warrant, and
  does hereby irrevocably constitute and appoint

  	
   

  	
  its attorney to

  
	
  transfer the within
  Warrant on the books of the within named Company with full power of
  substitution on the premises.

  
						

 

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  IN THE
  PRESENCE OF:EXHIBIT 10.1

 

AMENDMENT NO. FOUR

TO BUILD-TO-SUIT LEASE

 

THIS AMENDMENT NO. FOUR (“Amendment”)
is made and entered into as of March 31, 2009, effective as of February 1,
2009 (the “Effective Date”), by and between HCP BTC, LLC (formerly known as Slough BTC, LLC),
a Delaware limited liability company (“Landlord”) and RIGEL PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

A.            Landlord and Tenant are parties to that certain
Build-To-Suit Lease dated as of May 16, 2001 (the “Original Lease”),
as amended by Amendment No. One to Build-to-Suit Lease dated as of October 18,
2002 (the “First Amendment”), by Amendment No. Two to Build-to-Suit
Lease dated as of January 31, 2005 (the “Second Amendment”), and by
Amendment No. Three to Build-to-Suit Lease dated as of July 24, 2006
(the “Third Amendment”) (the Original Lease and the First Amendment, Second
Amendment and Third Amendment being referred to herein collectively as the “Lease”),
pursuant to which Landlord leases to Tenant, and Tenant leases from Landlord,
the two connected buildings commonly known as 1170 Veterans Boulevard and 1180
Veterans Boulevard, containing approximately 146,923 square feet in the
aggregate, in the Britannia Oyster Point business park, South San Francisco,
California.

 

B.            The Third Amendment provided for the deferral of a
portion of Tenant’s monthly rental obligation for the months from and including
May 2006 through December 2007; for the conversion of such deferred
rent, together with interest accrued thereon, to an “Amortizable Balance” (as
defined in the Third Amendment) as of December 31, 2008; and for the
repayment of such Amortizable Balance by Tenant over a period of four (4) years
beginning in January 2009 pursuant to a repayment schedule prescribed in
the Third Amendment.

 

C.            The Amortizable Balance as of December 31, 2008 was
$7,024,284.  Tenant made one amortization
payment with respect to such Amortizable Balance in January 2009.

 

D.            The parties wish to amend the Lease, effective as of the
Effective Date, to provide for, inter alia, (i) a
deferral of repayment of the remaining portion of the Amortizable Balance
(redefined below for purposes of this Amendment as the “Deferral Amount”), (ii) a
revised set of terms governing payment of the unpaid balance of such Deferral
Amount, and (iii) the cancellation of an existing warrant and issuance of a
new warrant to Landlord or its nominee, all subject to the terms and conditions
set forth herein.

 

E.             Unless otherwise defined herein, all capitalized terms
have the meanings assigned to them in the Lease.

 

THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

 

 

1.             Calculation
and Payment of Deferral Amount.

 

(a)           The
parties agree that the remaining Amortizable Balance as of the Effective Date
was $6,850,786 (the “Deferral Amount”).  The unpaid balance of the Deferral Amount
shall be deemed to increase at the rate of twelve percent (12%) per annum, compounded
monthly, during the Delay Period as defined below (the Deferral Amount, as so
increased from time to time, being sometimes referred to herein as the “Adjusted
Deferral Amount” and the amount by which the Adjusted Deferral Amount from
time to time exceeds the initial Deferral Amount as specified above being
sometimes referred to herein as the “Delay Period Adjustment Amount”).  For purposes of this Amendment, the term “Delay
Period” means the period from and including the Effective Date until and
including the earlier of (i) June 30, 2010 or (ii) the date the Adjusted
Deferral Amount has been paid in full by Tenant.

 

(b)           Tenant
shall pay the Adjusted Deferral Amount, together with accrued interest (if any)
pursuant to this subparagraph (b), in accordance with the provisions of
this subparagraph (b).  Payments
made by Tenant under the Lease shall be applied first to Tenant’s monetary
obligations due or past due under the Lease other  than pursuant
to this subparagraph (b) (including, but not limited to, Tenant’s
obligations for payment of monthly minimum rent, Operating Expenses, and
additional rent payable under any applicable provisions of the Lease as it
existed prior to Amendment No. Three), and shall be applied to Tenant’s
obligations under this subparagraph (b) only after all such other monetary
obligations are current.  All amounts
paid or payable by Tenant pursuant to this subparagraph (b) shall constitute
additional rent under the Lease and, when paid and properly applicable to
Tenant’s obligations under this subparagraph (b), shall be applied first
to accrued interest (if any) pursuant to the provisions of this
subparagraph (b), then to the Delay Period Adjustment Amount, and then to
the remaining balance of the Adjusted Deferral Amount.

 

(i)            Except as expressly provided in
subparagraph (b)(ii), (iii), (iv) or (v) below (if applicable),
Tenant shall not be required to make any repayment with respect to the Adjusted
Deferral Amount prior to July 1, 2010. 
If as of June 30, 2010 the Adjusted Deferral Amount has not been
paid in full and none of the events described in subparagraph (b)(ii), (iii) or
(iv) below has occurred, then (A) on July 1, 2010, Tenant shall make
a lump-sum payment to Landlord in an amount equal to the then applicable Delay
Period Adjustment Amount (which amount the parties agree will be $1,262,630 as
of June 30, 2010 if there are no prepayments of any portion of the Adjusted
Deferral Amount prior to that date), and (B) Tenant shall pay the entire remaining
balance of the Adjusted Deferral Amount (which should, in the absence of any
prepayments, be equal to the initial Deferral Amount as specified above) in
equal monthly installments of $173,498 per month for forty-seven (47) months (the
same payment terms previously in effect under the Third Amendment), including
interest accruing at nine percent (9%) per annum from July 1, 2010 on the
unpaid portion of the Adjusted Deferral Amount remaining outstanding from time
to time.  Such monthly payments shall be due, together with all minimum monthly
rent and all other additional rent otherwise payable under the Lease, on the
first day of each calendar month beginning on July 1, 2010 and continuing
through and including May 1, 2014.  The rent schedule set forth in Exhibit A attached hereto and
incorporated herein by this reference sets forth, for purposes of illustration,
the modified rent schedule that would be applicable under this Amendment if
this subparagraph (b)(i) applies and no prepayments of the Adjusted
Deferral Amount are made by Tenant prior to July 1, 2010.  In the event of any prepayment after 

 

2

 

June 30, 2010 of less than the entire
then remaining balance of the Adjusted Deferral Amount and interest thereon,
the unpaid Adjusted Deferral Amount and accrued interest shall be recalculated
(after giving effect to such prepayment) and the required monthly amortization
payment under this subparagraph (b)(i) shall be recalculated to
provide for a level amortization of such recalculated Adjusted Deferral Amount,
with interest at nine percent (9%) per annum, compounded monthly, over the
number of full calendar months remaining from the date of such prepayment
(beginning with the first full calendar month following the actual prepayment
date) through and including May 2014.

 

(ii)           If
a Capital Event (as defined below) occurs prior to July 1, 2010 and the Transaction
Consideration (as defined below) received pursuant to or in connection with
such Capital Event is $200 million or more, then within forty-five (45) business
days after the closing of such Capital Event, Tenant shall pay Landlord a
lump-sum payment equal to the entire then outstanding Adjusted Deferral Amount,
in full and final satisfaction of Tenant’s payment obligations under this
subparagraph (b).

 

(iii)         If
a Capital Event occurs prior to July 1, 2010 and the Transaction
Consideration received pursuant to or in connection with such Capital Event is
less than $200 million but greater than or equal to $100 million, then (A) within
forty-five (45) business days after the closing of such Capital Event, Tenant
shall pay Landlord a lump-sum payment equal to fifty percent (50%) of the then
outstanding Adjusted Deferral Amount, and (B) on or before July 1,
2011, Tenant shall pay Landlord a further lump-sum payment equal to the entire
remaining balance of the Adjusted Deferral Amount, which for this purpose shall
be deemed to continue to increase at the rate of twelve percent (12%) per
annum, compounded monthly, from the date when the first lump-sum payment was
made pursuant to clause (A) above through and including June 30,
2011, which payments in the aggregate shall constitute full and final
satisfaction of Tenant’s payment obligations under this subparagraph (b).

 

(iv)          If
a Capital Event occurs prior to July 1, 2010 and the Transaction
Consideration received pursuant to or in connection with such Capital Event is
less than $100 million but greater than or equal to $50 million, then Tenant
shall make payments to Landlord in the same manner and same amounts required
under subparagraph (b)(i) above, except that the lump-sum payment
described in clause (A) of subparagraph (b)(i) shall be
made on or before the first day of the calendar month following the month in
which such Capital Event occurs, and the monthly payments described in clause (B) of
subparagraph (b)(i) shall commence on the first day of the calendar
month following the month in which such Capital Event occurs and shall continue
for a total of forty-seven (47) calendar months, including the month in which
the first such monthly payment is made.

 

(v)            If
more than one Capital Event occurs prior to July 1, 2010, then the
Transaction Consideration received pursuant to or in connection with all such
Capital Events shall be aggregated, on a cumulative basis, for purposes of
applying subparagraphs (b)(ii), (iii) and (iv) above and the
governing payment provisions shall be those set forth in the subparagraph
applicable to a Capital Event with Transaction Consideration equal to such
aggregate amount, effective as of the closing of the later or last such Capital
Event to occur, with Tenant receiving a credit against its payment obligations
under such governing payment provisions to the extent of any payments already
made by Tenant to Landlord pursuant to the earlier-occurring Capital Event(s).

 

3

 

(c)           The
unpaid balance of the Adjusted Deferral Amount (and interest accrued thereon,
if applicable) may be prepaid by Tenant voluntarily at any time, in whole or in
part, without penalty, in Tenant’s sole discretion, provided that at the
time of such prepayment Tenant is current in its payments with respect to all
monetary obligations under the Lease. 
Any such prepayment, after all other monetary obligations of Tenant
under the Lease have been brought current, shall be applied first to accrued
interest (if any), then to the unpaid balance (if any) of the Delay Period
Adjustment Amount, and then to the remaining balance of the Adjusted Deferral
Amount.  In the event of any such
prepayment made after amortization payments have commenced on July 1, 2010
pursuant to subparagraph (b)(i) above, there shall be a recalculation
of the required amortization payments (after giving effect to the prepayment)
as provided in the final sentence of such subparagraph (b)(i).

 

(d)           For
purposes of this Amendment, the term “Capital Event” means any of the
following:  (i) receipt by Tenant of
cash or cash-equivalent consideration in exchange for an issuance of equity
securities by Tenant (including, but not limited to, an issuance of warrants,
options or other securities exercisable for or convertible into equity
securities of Tenant), or in exchange for issuance by Tenant of a note or other
debt security convertible into equity securities of Tenant; (ii) receipt
by Tenant of cash or cash-equivalent consideration pursuant to a product
license by Tenant; (iii) receipt by Tenant of cash or cash-equivalent
consideration pursuant to a strategic partnership, joint venture, collaboration
or other similar arrangement with another person or entity; or (iv) occurrence
of any merger, consolidation, reorganization, sale of assets, sale of stock or
other similar transaction in which a material part of the consideration
received by Tenant or by any of its equity security holders in connection with
such transaction consists of cash or cash-equivalent consideration.  The term “Transaction Consideration”
means, with respect to a Capital Event, the aggregate cash and cash-equivalent
consideration received collectively by Tenant and, in the case of a Capital
Event defined in clause (iv) of the preceding sentence, by Tenant’s
equity security holders pursuant to or in connection with such Capital Event.

 

2.             Cancellation
and Issuance of Warrants. 
HCP Estates USA Inc., a Delaware corporation (“HCP Estates”), is
an affiliate of Landlord and is the holder of Warrant No. CS-23A, issued
by Tenant and dated as of February 26, 2009, for the purchase of 100,000
shares of Tenant’s common stock (the “Existing Warrant”), although
physical possession of the original Existing Warrant is presently maintained by
Tenant (for the benefit of HCP Estates). 
Concurrently with the mutual execution of this Amendment, (a) Tenant
shall execute, issue and deliver to Landlord or Landlord’s nominee (which
Landlord presently anticipates will be HCP Life Science REIT, Inc., a Maryland
corporation and an affiliate of Landlord) a Warrant dated as of the date of
execution of this Amendment, in the same form as the Existing Warrant (except
with such modifications as are reasonably necessary to reflect any new or
different terms specified in this Amendment), for 200,000 shares of Tenant’s Common Stock (the “New Warrant”),
and (b) the Existing Warrant (presently in Tenant’s possession as noted
above) shall be automatically cancelled and shall be of no further force or
effect.  The New Warrant shall be
exercisable at any time from the issue date through the seventh (7th) anniversary of the issue date, inclusive.  Neither the issuance nor the exercise of the
New Warrant shall result in any credit against any monetary obligations of
Tenant under the Lease or under this Amendment. 
The exercise price per share under the New Warrant, to be
inserted at the time of issuance, shall be equal to the average closing price of
Tenant’s Common Stock for the three (3) business days immediately
preceding the execution date of this Amendment.

 

4

 

3.             Usury
Laws Not Applicable.

 

(a)           The
parties are entering into this Amendment in reliance upon their mutual understanding
and agreement that the California usury laws are not applicable to the
transactions contemplated by this Amendment, including (but not limited to) the
deferral and repayment provisions contained herein and the manner in which
Tenant’s repayment obligation is calculated. 
Without limiting the generality of the foregoing, the parties acknowledge
and agree that the relationship established by the Lease is fundamentally a
real property leasing relationship and does not involve a lending or borrowing
of money as between Landlord and Tenant, and that the modified rent structure
and repayment obligations set forth in this Amendment are part of the
negotiated consideration for Tenant’s leasing of the Premises (as defined in
the Lease).

 

(b)           If,
notwithstanding the intention and understanding of the parties as set forth
above, it is determined at any time or under any circumstances pursuant to a
final judgment by a court of competent jurisdiction that (i) the
provisions of this Amendment are subject to the California usury laws, (ii) no
exemption from such usury laws is available for the transactions contemplated
in this Amendment and (iii) the fulfillment of any provision of this
Amendment would result in Landlord receiving or being deemed to receive interest
at a rate exceeding the highest lawful rate permissible under applicable
California usury laws, then (A) the relevant provisions of this Amendment
shall be automatically amended in such a manner as to reduce Tenant’s monetary
obligations hereunder to the maximum limit permissible under applicable
California usury laws, and (B) to the extent Landlord has actually
received amounts determined by such court to constitute interest in an amount
in excess of the highest lawful rate, then the amount that would otherwise
constitute excessive interest shall instead be deemed to be applied in
reduction of the unpaid principal balance of Tenant’s obligations under this
Amendment rather than being a payment of interest under this Amendment, or, if
such excessive interest exceeds the unpaid principal balance of Tenant’s
obligations under this Amendment, then such excess amount shall be refunded to
Tenant.

 

4.             No
Brokers.  Each
party respectively (i) represents and warrants that no broker represented
or acted for such party in connection with the consummation of this Amendment
or of the transactions contemplated herein, and (ii) agrees to indemnify,
defend and hold the other party harmless against any liability, cost or
expense, including (but not limited to) reasonable attorneys’ fees, arising out
of any claims for brokerage commissions or other similar compensation by any
broker or agent alleging to have represented or acted on behalf of the
indemnifying party in connection with this Amendment and the transactions contemplated
herein.

 

5.             Entire
Agreement; Confidentiality.  This Amendment constitutes the entire
agreement between Landlord and Tenant regarding the subject matter hereof and
supersedes all prior negotiations, discussions, terms sheets, letters,
understandings and agreements, whether oral or written, between the parties
with respect to such subject matter (other than the Lease itself, as expressly
amended hereby).  The parties agree that
all correspondence, terms sheets, drafts, letters, communications, understandings
and agreements (if any), whether oral or written, exchanged or reached between
them prior to the execution of this Amendment and relating in any way to the
subject matter of this Amendment, and all information contained in any of the 

 

5

 

foregoing (except insofar as any such information is expressly set
forth in this Amendment itself), are and shall remain confidential information
and shall not be disclosed by either party or its respective agents or
employees to any other person or entity, except that either party may disclose
such confidential information to its respective employees, agents and financial
and legal consultants provided that (a) such disclosure is
reasonably necessary to advance or protect the disclosing party’s interests and
(b) the disclosing party advises such recipients of the confidential
nature of such information and requires them to respect and maintain the
confidentiality thereof.

 

6.             No
Other Modifications. 
Except as otherwise expressly provided herein, the terms and provisions
of the Lease are unmodified and remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Amendment No. Four
as of the date first set forth above, effective as of the Effective Date.

 

 

	
  LANDLORD:

  	
  HCP BTC, LLC (formerly known as Slough BTC,
  LLC), a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  HCP ESTATES USA INC. (formerly known as Slough Estates USA
  Inc.), a Delaware corporation, Its
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jonathan M. Bergschneider

  
	
   

  	
   

  	
  Name:

  	
  Jonathan M. Bergschneider

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  TENANT:

  	
  RIGEL PHARMACEUTICALS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James M. Gower

  
	
   

  	
  Name:

  	
  James M. Gower

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ryan Maynard

  
	
   

  	
  Name:

  	
  Ryan Maynard

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

Attachment:

Exhibit A                Adjusted
Rent Schedule (Subparagraph 1(b)(i))

 

6

 

EXHIBIT A

Adjusted Rent Schedule
(Subparagraph 1(b)(i))

 

Pursuant to Subparagraph 1(b)(i) of
the foregoing Amendment, the schedule of current monthly minimum rental
payments for Months 73 through 180 of the Lease term (2/1/09 through
1/31/18) would be as follows, assuming no prepayments of the Adjusted Deferral
Amount by Tenant prior to July 1, 2010:

 

	
  Months

  	
   

  	
  Previously

  Scheduled Monthly

  Rent (per Lease) *

  	
   

  	
  Additional Monthly

  Rent (per Amendment,

  Subparagraph 1(b)(i))

  	
   

  	
  Total Adjusted

  Monthly Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  073 — 084

  (2/1/09 —
  1/31/10)

  	
   

  	
  $

  	
  1,203,153

  	
   

  	
  none

  	
   

  	
  $

  	
  1,203,153

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  085 — 089

  (2/1/10 —
  6/30/10)

  	
   

  	
  $

  	
  1,025,154

  	
   

  	
  none

  	
   

  	
  $

  	
  1,025,154

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  090 (7/1/10)

  	
   

  	
  $

  	
  1,025,154

  	
   

  	
  $

  	
  1,436,128

  	
   

  	
  $

  	
  2,461,282

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  091 — 096

  (8/1/10 —
  1/31/11)

  	
   

  	
  $

  	
  1,025,154

  	
   

  	
  $

  	
  173,498

  	
   

  	
  $

  	
  1,198,652

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  097 — 108

  (2/1/11 —
  1/31/12)

  	
   

  	
  $

  	
  1,066,548

  	
   

  	
  $

  	
  173,498

  	
   

  	
  $

  	
  1,240,046

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  109 — 120

  (2/1/12 —
  1/31/13)

  	
   

  	
  $

  	
  1,109,686

  	
   

  	
  $

  	
  173,498

  	
   

  	
  $

  	
  1,283,184

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  121 — 132

  (2/1/13 —
  1/31/14)

  	
   

  	
  $

  	
  1,154,583

  	
   

  	
  $

  	
  173,498

  	
   

  	
  $

  	
  1,328,081

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  133 — 136

  (2/1/14 —
  5/31/14)

  	
   

  	
  $

  	
  1,199,781

  	
   

  	
  $

  	
  173,498

  	
   

  	
  $

  	
  1,373,279

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  137 — 144

  (6/1/14 —
  1/31/15)

  	
   

  	
  $

  	
  1,199,781

  	
   

  	
  none

  	
   

  	
  $

  	
  1,199,781

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  145 — 156

  (2/1/15 —
  1/31/16)

  	
   

  	
  $

  	
  1,248,232

  	
   

  	
  none

  	
   

  	
  $

  	
  1,248,232

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  157 — 168

  (2/1/16 —
  1/31/17)

  	
   

  	
  $

  	
  1,298,481

  	
   

  	
  none

  	
   

  	
  $

  	
  1,298,481

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  169 — 180

  (2/1/17 —
  1/31/18)

  	
   

  	
  $

  	
  1,350,544

  	
   

  	
  none

  	
   

  	
  $

  	
  1,350,544

  	
   

  

 

* Excludes amortization
amounts that would have been payable under Amendment No. Three, to reflect
the further deferral of such amounts pursuant to this Amendment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]