Document:

Agreement to Sublease between Harrison & Star, Inc

 EXHIBIT 10.16 
  
 AGREEMENT OF SUBLEASE, dated as of the
             day of November, 2003, by and between HARRISON & STAR, INC. D/B/A HYPHEN SOLUTIONS, having offices c/o Omnicom Group Inc., 437 Madison Avenue, New York, New
York 10022 (“Sublessor”), and NPS PHARMACEUTICALS, INC., a Delaware corporation, having offices at 420 Chipeta Way, Salt Lake City, Utah 84108 (“Sublessee”). 
  
 W I T N E S S E
T H: 
  
 WHEREAS, Sublessor is a tenant
of the entire third floor and a portion of the second floor (the “Premises”) in the building known as Morris Corporate Center I, 300 Interpace Parkway, Parsippany, New Jersey (the “Building”), and Sublessee is
desirous of subletting a portion of the Premises consisting of the entirety of the 3rd floor of the Building (the
“demised premises”) from Sublessor upon the terms and conditions hereinafter set forth: 
  
 NOW, THEREFORE, in consideration of the rental payments to be made hereunder by Sublessee to Sublessor and the mutual terms, covenants, conditions,
provisions and agreements hereinafter set forth, Sublessor does hereby sublet to Sublessee and Sublessee does hereby take and hire from Sublessor, the demised premises. 
  
 This Sublease shall be expressly subject and subordinate to all of the terms, covenants, conditions, provisions and
agreements contained in that certain Agreement of Lease dated as of June 17, 1997, as amended by that certain First Amendment to Lease dated as of September 30, 1997, that certain Second Amendment to Lease dated as of December 31, 1997 and by that
certain Third Amendment to Lease dated as of January 21, 1998 entered into between Morris Corporate Center, L.L.C., as landlord (“Underlying Landlord”), and Sublessor, as tenant therein (which lease, as amended, is hereinafter
referred to as the “Underlying Lease”). A true copy of the Underlying Lease, with certain of the Excluded Provisions (as hereinafter defined) deleted or redacted, has been delivered to, and reviewed by, Sublessee and is annexed
hereto and made a part hereof as Exhibit A. The provisions of the Underlying Lease are specifically incorporated herein by reference, except such terms, covenants, conditions, provisions and agreements as are specifically inconsistent with
the terms hereof or are expressly set forth in Paragraph 20 below (the “Excluded Provisions”) and except that all references therein to “Landlord” shall mean Underlying Landlord, all references therein to
“Tenant” shall mean Sublessee, all references to “Demised/Leased Premises” shall mean demised premises, and all references to “this Lease” shall mean this Sublease. 
  
 1. Term. The term of this Sublease shall commence (the
“Commencement Date”) on the later to occur of (a) December 1, 2003 and (b) the date that the Underlying Landlord shall consent hereto in writing and shall end on September 29, 2007 (the “Expiration Date”).
Notwithstanding anything to the contrary contained herein, this Sublease is contingent upon Sublessee receiving a Business Employment Incentive Program grant (the “BEIP Grant”) from the State of New Jersey no later than December 31, 2003
(the “Outside Date”), time being of the essence with respect thereto. In the event such approval is not secured by that date and such failure is not caused by any act or omission on the part of Sublessee or anyone claiming by, under or
through Sublessee, then either Sublessor or Sublessee shall have the right to cancel this Sublease by giving written notice of cancellation to the other party within ten (10) days of the Outside Date, time being of the essence with respect thereto.
If either Sublessor or Sublessee timely delivers the aforesaid cancellation notice, this Sublease shall terminate five (5) days after the date of such notice, unless Sublessee receives the BEIP Grant within such five (5) day period, in which case
the cancellation notice shall be void and this Sublease shall continue in full force and effect. Failure by either party to exercise such right to cancel this Sublease within such ten (10) day period shall constitute a waiver of such right, time
being of the essence with respect thereto. 
  

 2. Fixed Rent. A. Sublessee shall pay to Sublessor, during the term of this Sublease, the annual
rental (“fixed rent”), which shall be inclusive of Sublessee’s electric charges, of: commencing on the Commencement Date and continuing through and including the Expiration Date, at the rate of Five Hundred Five Thousand Seven
Hundred Sixty One Dollars ($505,761.00) per annum payable in equal monthly installments of $42,146.75. Each monthly installment of fixed rent shall be paid on the first day of each and every calendar month during the term, except the first full
monthly installment of fixed rent shall be paid upon execution of this Sublease. The fixed rent for any month of the term of this Sublease which does not begin or end on the first or last day of a calendar month shall be prorated on a daily basis in
accordance with the fixed rent due for the calendar month. Since the installment for the first full month’s fixed rent is being paid by Sublessee upon the execution of this Sublease regardless of whether the term shall have commenced on the
first day of a calendar month, any adjustment to which Sublessee is entitled on account of the immediately preceding sentence shall be made to the monthly installment of fixed rent due on the first day of the calendar month next following the month
in which the Commencement Date occurs. All fixed rent, additional rent and other sums and charges due to Sublessor under this Sublease shall be paid by Sublessee at the office of Sublessor set forth above, or at such other place as Sublessor may
designate, without any notice, setoff or deduction whatsoever. Sublessee’s obligation to make such payments shall survive the Expiration Date or sooner termination of this Sublease. 
  
 B. All other costs and expenses which Sublessee assumes or agrees to pay pursuant to this Sublease shall be
deemed additional rent and, in the event of non-payment, Sublessor shall have all the rights and remedies herein provided for in case of non-payment of base rent and additional rent as per Section 1.5 of the Underlying Lease. The payment of
any late charge shall be in addition to all other rights and remedies available to Sublessor in the case of non-payment of fixed rent. 
  
 C. In the event Sublessor incurs any costs or expenses with respect to the demised premises and which are directly attributable to
services or utilities furnished to the demised premises at the request of or on behalf of Sublessee or attributable to repairs made in the demised premises at the request of or on behalf of Sublessee, whether they are considered additional rent
under the Lease or not, then Sublessee shall pay Sublessor upon demand the amount of such costs and expenses incurred by Sublessor. 
  
 3. Electricity Charge. Sublessee’s annual electrical charges of $79,857.00 are included in the fixed rent. Sublessor shall not be liable in
any way to Sublessee for any failure or defect in supply or character of electric current furnished to the demised premises. Sublessee covenants and agrees that, at all times, its connected electrical load shall not cause a default under the
Underlying Lease. Any sums due and payable to Sublessor under this paragraph shall be deemed to be, and collectible as, additional rent. In no event shall the charge payable by Sublessee for electrical charges for the demised premises be less than
$79,857.00 per annum. 
  
 4. Additional Rent.
Sublessee shall pay to Sublessor, as additional rent, 50% of all amounts payable by Sublessor to Underlying Landlord pursuant to Article 5 of the Underlying Lease, which are applicable to the term of this Sublease, except that for purposes of
determining the amounts payable by Sublessee pursuant to this paragraph, the Base Year shall mean calendar year 2004. The additional rent payable by Sublessee shall be paid to Sublessor in the manner and five (5) days before each such date as
Sublessor shall be required to pay its corresponding share of such additional rent pursuant to the Underlying Lease. Payments for the first and last years of the term hereof shall be equitably prorated. In the event that the demised premises
increase or decrease during the term of this Sublease or the premises demised pursuant to the Underlying Lease increase or decrease, then Sublessee’s proportionate share of amounts payable pursuant to this paragraph shall be equitably adjusted.

  

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 5. Use. Sublessee shall use the demised premises only for the uses specified in the Underlying
Lease. Sublessee shall use and occupy the demised premises in a manner consistent with the terms of the Underlying Lease. 
  
 6. Compliance with Underlying Lease. Sublessee covenants and agrees to observe and perform all of the terms, covenants, conditions, provisions and
agreements to be performed by Sublessor, as tenant pursuant to the Underlying Lease, except for any Excluded Provisions, and further covenants and agrees not to do or suffer or permit anything to be done which would violate the Underlying Lease or
result in a default under or cause the Underlying Lease to be terminated. All grace periods specified in the Underlying Lease shall, for purposes of determining compliance by Sublessee with the provisions hereof, be each reduced by five (5) days.

  
 7. Non-Liability, Indemnity. Sublessee shall and hereby
does indemnify, defend and hold Sublessor harmless from and against any and all actions, claims, demands, damages, liabilities and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) asserted against, imposed
upon or incurred by Sublessor by reason of (a) any violation caused, suffered or permitted by Sublessee, its agents, contractors, servants, licensees, employees or invitees, of any of the terms, covenants, conditions, provisions or agreements of the
Underlying Lease, (b) any damage or injury to persons or property occurring upon or in connection with the use or occupancy of the demised premises by Sublessee or anyone claiming by, under or through Sublessee, (c) the use or maintenance of the
demised premises or any business therein or any work or thing whatsoever done, or any condition created in or about the demised premises during the term (or any time prior to the Commencement Date that Sublessee may have been given access to the
demised premises), (d) any negligent or otherwise wrongful act or omission of Sublessee or any of its agents, contractors, servants, licensees, employees or invitees, (e) any failure of Sublessee to perform or comply with all of the provisions of
this Sublease hereof that are applicable to Sublessee, and (f) any obligation Sublessor may have to indemnify Underlying Landlord under the Underlying Lease, to the extent related to the use of the demised premises by Sublessee or anyone claiming
by, under or through Sublessee. Neither Sublessor nor any agent, contractor, servant, licensee, employee or invitee of Sublessor shall be liable to Sublessee for any death of or injury or damage to Sublessee or any other person or for any damage to
or loss (by theft or otherwise) of any property of Sublessee or any other person, except to the extent caused by or due to the gross negligence or willful act of Sublessor. In case any action or proceeding be brought against Sublessor or any agent,
contractor, servant, licensee, employee or invitee of Sublessor by reason of any of the foregoing, Sublessee, upon notice from Sublessor, shall defend such action or proceeding by counsel chosen by Sublessee, who shall be reasonably satisfactory to
Sublessor. Sublessee or its counsel shall keep Sublessor fully apprised at all times of the status of such defense and shall not settle same without the written consent of Sublessor, which consent shall not be unreasonably withheld. 
  
 8. Performance by Underlying Landlord. Sublessor does not assume any
obligation to perform the terms, covenants, conditions, provisions and agreements contained in the Underlying Lease on the part of Underlying Landlord to be performed. In the event Underlying Landlord shall fail to perform any of the terms,
covenants, conditions, provisions and agreements contained in the Underlying Lease on its part to be performed, Sublessor shall be under no obligation or liability whatsoever to Sublessee. Sublessor shall cooperate with Sublessee, at no cost to
Sublessor, in seeking to obtain the performance of Underlying Landlord under the Underlying Lease. Sublessee shall not be allowed any abatement or diminution of fixed rent or additional rent under this Sublease because of Underlying Landlord’s
failure to perform any of its obligations under the Underlying Lease. Notwithstanding the foregoing, in the event that Sublessor receives an abatement or diminution of fixed rent or additional rent from Underlying Landlord that relates to the
demised premises and the term of this Sublease, Sublessee shall be entitled to an abatement or diminution of fixed rent or additional rent equal to the amount thereof. 
  

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 9. Repairs: cleaning. Sublessee shall take good care of the demised premises and shall assume the
entire responsibility for cleaning and janitorial services and for repairs which may be required under the Underlying Lease or as otherwise necessary during the term of this Sublease, excepting only those services and repairs, if any, which
Underlying Landlord may be obligated to provide and to make under the terms, covenants, conditions, provisions and agreements of the Underlying Lease. 
  
 10. Alterations. Sublessee shall not make any changes, alterations, additions or improvements to the demised premises without first obtaining the
written consent of the Underlying Landlord and Sublessor. Sublessor’s consent shall not be unreasonably withheld if the written consent of the Underlying Landlord is first obtained and no restoration is required of Sublessor pursuant to the
Underlying Lease on the Expiration Date. Simultaneously with the submission of documents regarding alterations to the Underlying Landlord, Sublessee shall send copies of all such documents regarding alterations to Sublessor. Sublessee shall pay all
costs and expenses relating to any changes, alterations, additions or improvements and shall cause same to be completed in accordance with law and the terms, covenants, conditions, provisions and agreements of the Underlying Lease. Sublessee hereby
agrees to indemnify, defend and hold Sublessor harmless from any and all loss, cost, and expense (including, without limitation, reasonable attorneys fees) incurred by Sublessor as a result of Sublessee’s failure to comply with the aforesaid
terms, covenants, conditions, provisions or agreements. 
  
 11.
Initial Occupancy. Sublessee represents that it has inspected the demised premises and agrees to take the same in their present condition, and Sublessee acknowledges that no representations with respect to the condition thereof have been
made. Any work required by Sublessee to prepare the demised premises for its occupancy shall be made and paid for by Sublessee and shall be subject to all of the terms, covenants, conditions, provisions and agreements set forth in the Underlying
Lease. 
  
 12. Assignment and Subletting. (a) Sublessee
shall not assign this Sublease or sublet the demised premises or otherwise transfer, mortgage or encumber this Sublease, the demised premises or any part thereof or permit the use thereof without first complying with the provisions of the Underlying
Lease and obtaining Sublessor’s consent thereto. Sublessor’s consent shall not be unreasonably withheld if the written consent of the Underlying Landlord is first obtained. Sublessor shall not be required to consent to any such assignment
or further subletting if Sublessee is then in default under the Sublease or if such further subletting or assignment would cause Sublessor to be in default under the Underlying Lease. No such consent shall relieve Sublessee from the obligation to
seek consent to a further subletting or assignment, and Sublessor may withhold its consent to same in its sole and absolute discretion. Copies of all materials required by the Underlying Lease shall be delivered simultaneously to Sublessor, together
with Sublessee’s request for consent. No Sublessor consent to an assignment of this Sublease or a sublease of all or a portion of the demised premises shall be deemed to be a release of Sublessee from the performance of Sublessee’s
covenants hereunder, and in all such cases Sublessee shall remain fully liable for its obligations under this Sublease. If Underlying Landlord and Sublessor shall give their consent to any assignment of this Sublease or any subsublease, Sublessee
shall, in consideration therefor, pay to Sublessor, as additional rent: 
  
 (i) In the case of an assignment, an amount equal to 50% of all sums and other consideration paid to Sublessee by the assignee for or by reason of such assignment. 
  
 (ii) In the case of a subsublease, 50% of any rents,
additional rents or other consideration payable under the subsublease or otherwise to Sublessee by the subsubtenant which are in excess of the fixed annual rent and additional rent accruing during the term of this Sublease in respect of the
subsubleased space (at the rate per square foot payable by Sublessee hereunder) pursuant to the terms hereof. 
  

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 The sums payable under this paragraph shall be paid to Sublessor as and when paid by the assignee or by
the subsubtenant, as the case may be. 
  
 (b) Notwithstanding anything to the contrary contained herein, Sublessee may, without Sublessor’s prior written consent, but upon prior written notice to Sublessor (and provided further that Sublessee obtains Underlying Landlord’s
consent pursuant to the terms and provisions of the Underlying Lease) assign this Sublease or subsublease all or a portion of the demised premises to an entity controlled by, under common control with or controlling Sublessee, subject, however, to
compliance with Sublessee’s obligations under this Sublease and provided further that Sublessee shall not be in default in the performance of any of its obligations under this Sublease beyond any applicable notice and cure period. . For the
purposes hereof, “control” shall be deemed to mean ownership of not less than 50% of all of the ownership interests of the corporation or other business entity in question. Neither such subletting or assignment shall relieve, release,
impair or discharge any of Sublessee’s obligations hereunder (it being understood and agreed that Sublessee shall continue to remain liable for the performance of all obligations under this Sublease, including, without limitation, the payment
of fixed rent and additional rent due hereunder throughout the term of this Sublease). 
  
 (c) If this Sublease be assigned, or if the demised premises or any portion thereof be underlet or occupied by anybody other than
Sublessee, Sublessor may, after default by Sublessee, collect rent from the assignee, undertenant or occupant, and apply the net amount collected to the rent herein reserved, but no such assignment, underletting, occupancy or collection shall be
deemed a waiver of this covenant, or the acceptance of the assignee, undertenant or occupant as tenant, or a release of Sublessee from the further performance by Sublessee of the covenants on the part of Sublessee herein contained. 
  
 13. Insurance. A. During the term of this Sublease, Sublessee, at its
sole cost and expense, shall provide and maintain comprehensive public liability and property damage insurance in conformity with the provisions of the Underlying Lease which shall include, without limitation, coverage of replacement value of any
and all now or hereafter existing leasehold improvements, which replacement value coverage shall, as of the Commencement Date, be in the amount of 1,000,000.00. Sublessee shall cause Sublessor and Underlying Landlord to be included as additional
insureds in said policy or policies which shall contain provisions, if and to the extent available, that it or they will not be cancellable except upon at least twenty (20) days prior notice to all insureds and additional insured and that the act or
omission of one insured or additional insured will not invalidate the policy as to the other insureds. Sublessee shall furnish to Sublessor reasonably satisfactory evidence that such insurance is in effect at or before the Commencement Date and, on
request, at reasonable intervals thereafter. 
  
 B. Sublessee shall include in all of its insurance policies a waiver of the insurer’s right of subrogation against Underlying Landlord, Sublessor and others required by the Underlying Lease, if any. If such waiver shall not be, or
shall cease to be, obtainable (a) without additional charge, or (b) at all, then Sublessee shall so notify Sublessor promptly after learning thereof. In case such waiver can only be obtained at additional charge, if Sublessor shall so elect and
shall pay the insurer’s additional charge therefor, such waiver, agreement or permission shall be included in the policy. Provided that Sublessee’s right of full recovery under the aforesaid policy or policies are not adversely affected or
prejudiced thereby, Sublessee hereby waives any and all right of recovery it might otherwise have against Underlying Landlord, Sublessor and others, if any, required by the Underlying Lease, their respective agents, contractors, servants, licensees,
employees and invitees, for loss or damage to Sublessee’s property, notwithstanding that such loss or damage may result from the negligence or fault of Underlying Landlord, Sublessor or such others as aforementioned, or their respective agents,
contractors, servants, licensees, employees or invitees. If, notwithstanding the recovery of insurance proceeds by Sublessee for loss, damage or destruction of its property, Sublessor is liable to Sublessee with respect to such loss, damage or
destruction or is obligated under this Sublease to make replacement, repair or restoration or payment for such loss, damage or destruction then, provided Sublessee’s right of full recovery under its insurance policies is not thereby prejudiced
or otherwise adversely affected, the amount of the net 

  

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proceeds of Sublessee’s insurance against such loss, damage or destruction shall be offset against Sublessor’s liability to Sublessee therefor, or
shall be made available to Sublessor to pay for replacement, repair or restoration, as the case may be. 
  
 14. Default. In the event Sublessee defaults in the performance of any of the terms, covenants, conditions, provisions and agreements of this
Sublease or of the Underlying Lease, Sublessor shall be entitled to exercise any and all of the rights and remedies to which it is entitled by law and also any and all of the rights and remedies specifically provided for in the Underlying Lease,
which are hereby incorporated herein and made a part hereof with the same force and effect as if herein specifically set forth in full, and that wherever in the Underlying Lease rights and remedies are given to Underlying Landlord, the same shall be
deemed to refer to Sublessor. 
  
 15. Sublease Consent.
This Sublease shall become fully effective only if the written consent hereto of Underlying Landlord is obtained. If such written consent is not obtained within thirty (30) days of the date hereof, then, at Sublessor’s option, this Sublease
shall be automatically void and of no force or effect and Sublessor shall return to Sublessee the first month’s rent and the security deposit, and thereupon neither party shall have any further obligation to the other. 
  
 16. Notice. Any notice to be given under this Sublease shall be in
writing and shall be sent by registered or certified mail, return receipt requested, by nationally-recognized overnight courier or by hand (against receipt therefor), addressed to (i) Sublessor at its address herein stated, Attention: CFO,
with a copy of the same to Omnicom Group Inc., 437 Madison Avenue, New York, New York 10022, Attention: Legal Department, and (ii) Sublessee at its address herein stated prior to the Commencement Date and at the demised premises after the
Commencement Date, Attention: Legal Department. Each party shall have the right to change, by notice in writing, the address to which such party’s notice is to be sent. Any notice to be given by Sublessor may be given by the attorneys for
Sublessor. Notices shall be deemed given upon receipt or refusal thereof. 
  
 17. Quiet Enjoyment. Sublessor covenants that Sublessee, on paying the fixed rent and additional rent and performing all the terms, covenants, conditions, provisions and agreements aforesaid, shall and may
peacefully and quietly have, hold and enjoy the demised premises for the term aforesaid, free from any interference or hindrance by Sublessor, but subject to the exceptions, reservations and conditions hereof. 
  
 18. Surrender of demised premises. On the date upon which the term
hereof shall expire and come to an end, whether on the Expiration Date, by lapse of time or otherwise, Sublessee, at Sublessee’s sole cost and expense, shall quit and surrender the demised premises to Sublessor in the same good order and
condition as Sublessor is delivering them to Sublessee, subject to the provisions of the Underlying Lease. 
  
 19. Brokers. Sublessee represents to Sublessor that Cushman & Wakefield of New Jersey Inc., CB Richard Ellis Inc. and WF Realty LLC
(collectively, the “Brokers”) are the only brokers with whom Sublessee dealt in relation to this transaction and that Sublessee has had no dealings, either direct or indirect, with any other real estate agent or broker in connection
with this transaction. Sublessee agrees to indemnify, defend and hold Sublessor harmless from any loss, liability and expense incurred by Sublessor as a result of any claim made against Sublessor which is based upon a breach of said representation
by Sublessee. Sublessee’s indemnification obligation hereunder shall survive the Expiration Date or sooner termination of this Sublease. Sublessor hereby agrees to pay the Brokers a commission pursuant to separate agreements. 
  

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 20. Excluded Provisions. The following provisions of the Underlying Lease are deemed to be
Excluded Provisions: Sections 1.3 (iii) and 1.4, Article 2, Section 5.3, Articles 33, 34 and 35, Exhibit B and Exhibit F; and Paragraph 7 of the Third Amendment to Lease. 
  
 21. Successors and Assigns. This Sublease shall be binding upon and, except as prohibited by this Sublease or the
Underlying Lease, inure to the benefit of the parties hereto and their respective successors and permitted assigns, if any. Nothing herein, however, shall be construed as permitting an assignment of this Sublease. 
  
 22. No Modifications. This Sublease may not be modified except by
written agreement signed by Sublessor and Sublessee. 
  
 23.
Security Deposit. A. Subject to subparagraph (B) below, Sublessee has deposited with Sublessor, the sum of $106,476.00 to be held in a non-interest bearing account by Sublessor as security for the faithful performance and observance by
Sublessee of the terms, covenants, conditions, provisions and agreements of this Sublease. It is agreed that in the event Sublessee defaults in respect of any of the terms, covenants, conditions, provisions and agreements of this Sublease,
including, but not limited to, the payment of fixed rent and additional rent, Sublessor may use, apply or retain the whole or any part of the security so deposited to the extent required for the payment of any fixed rent and additional rent or any
other sum as to which Sublessee is in default or for any sum which Sublessor may expend or may be required to expend by reason of Sublessee’s default in respect of any of the terms, covenants, conditions, provisions and agreements of this
Sublease, including but not limited to, any damages or deficiency in the reletting of the demised premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Sublessor. If Sublessor so applies or
retains any part of the security, Sublessee shall, upon demand, promptly deposit with Sublessor the amount so applied or retained so that Sublessor shall have the full deposit on hand at all times during the term of this Sublease. In the event that
Sublessee shall fully and faithfully comply with all of the terms, covenants, conditions, provisions and agreements of this Sublease, the security shall be returned to Sublessee after the Expiration Date and after delivery of the possession of the
demised premises to Sublessor. In the event of an assignment by Sublessor of its interest under the Underlying Lease, Sublessor shall have the right to transfer the security and Sublessee agrees to look to the new Sublessor solely for the return of
said security and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the security to a new Sublessor. Sublessee further covenants that it shall not assign or encumber or attempt to assign or encumber the
monies deposited herein as security and that neither Sublessor nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. 
  
 B. In lieu of the cash security deposit referred to in
subsection (A) above, Sublessee may deliver to Sublessor, and shall maintain in effect at all times during the term following delivery thereof, a clean, unconditional and irrevocable letter of credit, in form and substance satisfactory to Sublessor
in the amount of $106,476.00, issued by a banking corporation (“Bank”) reasonably satisfactory to Sublessor and having its principal place of business or its duly licensed branch in the City and County of New Jersey at which the
letter of credit may be presented for payment. Such letter of credit shall have an expiration date no earlier than the first anniversary of the date of issuance thereof and shall provide that it shall be automatically renewed from year to year
unless terminated by the Bank by notice to Sublessor given not less than ninety (90) days prior to the then expiration date therefor. It is agreed that in the event Sublessee defaults in respect of any of the terms, covenants, conditions, provisions
or agreements of this Sublease, including, but not limited to, the payment of fixed rent and additional rent, or if the letter of credit is terminated pursuant to the preceding sentence and is not replaced within thirty (30) days prior to its
expiration date, then (i) Sublessor shall have the right to require the Bank to make payment to Sublessor of so much of the entire proceeds of the letter of credit as shall be reasonably necessary to cure the default, or to make payment of the
entire proceeds of the letter of credit if it has not been replaced within said 30-day period, and (ii) Sublessor may apply said sum so 

  

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paid to it by the Bank to the extent required for the payment of any fixed rent or additional rent or any other sum as to which Sublessee is in default or
for any sum which Sublessor may expend or may be required to expend by reason of Sublessee’s default in respect of any of the terms, covenants, conditions, provisions and agreements of this Sublease, including, but not limited to, any damages
or deficiency in the reletting of the demised premises, whether such damages or deficiency accrues before or after summary proceedings or other re-entry by Sublessor, without thereby waiving any other rights or remedies of Sublessor with respect to
such default. Sublessor agrees to give Sublessee notice if it applies any portion of the proceeds of the letter of credit, which notice may be given after such application. If Sublessor applies any part of the proceeds of the letter of credit,
Sublessee, upon demand, shall promptly deposit with Sublessor, the amount so applied or retained so that the Sublessor shall have the full deposit on hand at all times during the term of this Sublease. If Sublessee shall fully and faithfully comply
with all of the terms, covenants, conditions, provisions and agreements of this Sublease, any letter of credit, or any remaining portion of any sum collected by Sublessor hereunder from the Bank, together with any other portion or sum held by
Sublessor as security, shall be returned to Sublessee within sixty (60) days after the Expiration Date and after delivery of the entire possession of the demised premises to Sublessor in the condition required by the Underlying Lease. In the event
Sublessee exercises said right of substitution, the letter of credit held by Sublessor prior to said substitution shall be promptly returned to Sublessee. In the event of an assignment by Sublessor of its interest under the Underlying Lease and this
Sublease, Sublessor shall have the right to transfer the security to the assignee, and Sublessee agrees to look to the new Sublessor solely for the return of said security and it is agreed that the provisions hereof shall apply to every transfer or
assignment made of the security to a new Sublessor, provided the new Sublessor shall assume the obligations of the Sublessor hereunder. Sublessee shall have the right to substitute one letter of credit for another, provided that, at all times, the
letter of credit shall meet the requirements of this paragraph. 
  
 24. Signage. Sublessor agrees to request that Underlying Landlord add Sublessee’s name on the entrance doors and floor lobby, as well as on the Building lobby directory or provide Sublessee with Sublessor’s existing
directory lines. 
  
 25. Inability to Perform,
Delays. If Sublessee shall be delayed in obtaining possession of the demised premises because of delays in obtaining consent or for any other reason beyond the reasonable control of Sublessor, Sublessor shall not be subject to any liability, the
effectiveness of this Sublease shall not be affected and the term hereof shall not be extended, but the fixed rent shall be abated (provided Sublessee is not responsible for the delay in obtaining consent or possession and provided the delay is not
due to delays in obtaining consent to, work required or permitted to be performed by Sublessee) until possession shall have been made available to Sublessee. 
  
 26. Notice of Accidents. Sublessee shall give Sublessor and Underlying Landlord notice of any fire, casualty or accident in or about the demised
premises promptly after Sublessee becomes aware of such event. 
  
 27. Destruction by Fire or Other Cause. If the demised premises shall be partially or totally damaged or destroyed by fire, casualty or other cause as a consequence of which Sublessor shall, pursuant to the Underlying Lease, receive
an abatement of rent with respect to the demised premises, there shall be a corresponding abatement of the fixed rent payable hereunder. This Sublease shall not be terminated as a consequence of any damage to, or destruction of the demised premises,
unless, as a result thereof, the Underlying Lease is terminated in accordance with its terms. 
  
 28. Bankruptcy. In the event Sublessee becomes the subject of proceedings involving bankruptcy, insolvency or reorganization of Sublessee, or if Sublessee makes an assignment for the benefit of creditors, or
petitions for, or enters into an arrangement with creditors, Sublessor shall have the same rights as to Sublessee as are afforded Underlying Landlord under the Underlying Lease under similar circumstances involving Sublessor. 
  

 8 

 29. No Waiver, etc. No agreement to accept a surrender of this Sublease shall be valid unless in
writing and signed by Sublessor. The failure of Sublessor or Sublessee to enforce any terms, covenants, conditions, provisions or agreements of this Sublease shall not prevent the later enforcement thereof or a subsequent act which would have
constituted a violation from having all the force and effect of an original violation. The receipt by Sublessor or payment by Sublessee of fixed rent or other rent or charges with knowledge of the breach of any covenant of this Sublease shall not be
deemed a waiver of such breach. The parties hereto, to the fullest extent permitted by law, waive trial by jury in any action or proceeding relating hereto and consent to the jurisdiction of the New York State court system. Sublessee hereby waives
any right to interpose any counterclaim in any action brought by Sublessor in connection herewith. The foregoing shall not be deemed a waiver by Sublessee of the right to interpose any counterclaim to the extent that the failure to interpose same
would prohibit Sublessee from bringing the claim, which is the basis thereof, in a separate action. 
  
 30. Occupancy Tax. If applicable, Sublessee shall pay directly to the City of Parsippany all occupancy and rent taxes which may be payable by
Sublessee to the City of Parsippany in respect of the rent reserved by this Sublease and will pay all other taxes, the payment of which shall be imposed directly upon any occupant of the demised premises. 
  
 31. Miscellaneous. Paragraph headings are for ease of reference only
and are not part of the agreement of the parties. This Sublease shall be governed by New Jersey law without giving affect to its conflict of laws rules. This Sublease may not be changed or terminated, or any provision hereof waived, orally. The
rights and remedies of Sublessor hereunder shall survive the expiration of the term or sooner termination hereof. The submission of this Sublease for examination or for signature is not intended to nor shall it create or evidence an offer to, or any
other right by, Sublessee with respect to the demised premises or otherwise; it being expressly agreed that this Sublease shall not be effective, and Sublessor shall not be bound hereby, until it is executed and delivered by each party hereto.

  
 32. Furniture. Sublessee shall have the right to use
the furniture set forth on Exhibit B attached hereto during the term of this Sublease. Sublessee shall keep and maintain such furniture in good condition and return the furniture to Sublessor on the Expiration Date in the same condition as it
existed on the Commencement Date, reasonable wear and tear excepted. 
  
 33. Parking. Sublessee shall be entitled to Sublessee’s proportionate share (i.e., 50%) of Sublessor’s reserved and unreserved parking spaces pursuant to Section 1.2 of the Underlying Lease. 
  
 34. Right of First Offer. (a) If at any time during the term of this
Sublease prior to the last 18 months of the term, Sublessor proposes to sublease any portion of the Premises which is not initially leased to Sublessee hereunder (the “Offered Space”) and such space shall be Available (as
hereinafter defined), Sublessor shall deliver notice thereof to Sublessee (an “Offered Space Notice”), which Offered Space Notice shall set forth the fixed rent for such Offered Space, the rentable square footage of the Offered
Space, Sublessee’s proportionate share in respect of the rentable square feet comprising such Offered Space, and the date Sublessor anticipates that such Offered Space will become Available for leasing. Provided that all of the conditions
precedent set forth in this Paragraph are fully satisfied by Sublessee, Sublessee shall have a one time option (an “Offered Space Option”), exercisable by Sublessee delivering irrevocable notice to Sublessor (an “Acceptance
Notice”) within seven (7) days of the giving by Sublessor of such Offered Space Notice, to lease all (but not less than all) of such Offered Space, upon the terms and conditions set forth in this Paragraph, and this Sublease shall thereupon
be modified as provided in subsection (e) of this Paragraph. 
  
 (b) Time shall be of the essence as to Sublessee’s giving of any Acceptance Notice. If Sublessee fails to timely give any Acceptance Notice, Sublessor shall have no further obligation to Sublessee, and Sublessee
shall have no further rights, with respect to the Offered Space in question, and 

  

 9 

 
Sublessor shall be free to lease such Offered Space to any third party or to otherwise dispose of such Offered Space. Notwithstanding anything to the
contrary contained herein, the terms and provisions of this Paragraph are subject to the Underlying Landlord’s consent to be given following Sublessee’s Acceptance Notice. 
  
 (c) “Available” shall mean that at the time in question (i) no person or entity leases or
occupies the Offered Space in question or any portion thereof, whether pursuant to a lease or other agreement, and (ii) no person or entity holds any option or right to lease or occupy such Offered Space or to renew its lease or right of occupancy
thereof. So long as a tenant or other occupant leases or occupies Offered Space or any portion thereof and has a right to renew its lease or other agreement, Sublessor shall be free to extend any such tenancy or occupancy, whether or not pursuant to
the precise terms of such right and such space shall not be deemed to be Available. 
  
 (d) Sublessee shall have no right to exercise any Offered Space Option unless all of the following conditions have been satisfied on the
date the applicable Acceptance Notice is delivered to Sublessor and on the applicable Offered Space Commencement Date: 
  
 (i) No event of default beyond the expiration of all applicable notice and cure periods shall have occurred and then be continuing
hereunder; 
  
 (ii) Sublessee shall be in
occupancy of the entire Premises; and 
  
 (iii)
There shall not have occurred any material adverse change in the financial condition of Sublessee from the condition described on the financial statements submitted by Sublessee to Sublessor in connection with this Sublease. 
  
 (e) Effective as of the date on which Sublessor delivers
vacant possession of the Offered Space in question to Sublessee (an “Offered Space Commencement Date”): 
  
 (i) the fixed rent for such Offered Space shall be equal to the greater of (a) the then rental rate per square foot as set forth in
Paragraph 2 of this Sublease with respect to the demised premises initially leased by Sublessee hereunder multiplied by the number of rentable square feet contained in such Offered Space and (b) the “Offered Space Fair Market
Value”, which shall mean the fair market annual rental value of the Offered Space in question as determined by Sublessor at the commencement of the leasing of such Offered Space for a term commencing on the Offered Space Commencement Date
applicable to such Offered Space and ending on the Expiration Date, taking into consideration all relevant factors and with (i) such Offered Space considered as vacant and in the “as is” condition which same shall be in on such Offered
Space Commencement Date and (ii) the Base Year being the calendar year in which such Offered Space Commencement Date occurs; 
  
 (ii) Sublessee shall make additional payments on account of additional rent with respect to such Offered Space in accordance with
Paragraph 4 of this Sublease; 
  
 (iii) The
Offered Space shall be delivered in its “as is” condition, and Sublessor shall not be obligated to perform any work with respect thereto or make any contribution to Sublessee to prepare the Offered Space for Sublessee’s occupancy. The
leasing of any furniture existing in the Offered Space to Sublessee shall be determined pursuant to the terms and provisions of a separate agreement mutually acceptable to Sublessor and Sublessee; 
  
 (iv) The security deposit amount shall be increased by an
amount equal to (x) the then existing amount of the security deposit required by Paragraph 23 of this Sublease, divided by the number of rentable square feet then contained in the demised premises, multiplied by (y) the number of rentable square
feet contained in such Offered Space; and 
  

 10 

 (v) Such Offered Space shall be added to and be deemed to be a part of the demised
premises for all purposes of this Sublease (except as otherwise provided in this Paragraph). 
  
 (f) In no event shall Sublessor be subject to any liability and this Sublease shall not be impaired if Sublessor shall be unable to
deliver possession of any Offered Space to Sublessee on any particular date or if Underlying Landlord does not provide its consent thereto. 
  
 (g) Upon request by Sublessor made on or following any Offered Space Commencement Date, Sublessee will execute, acknowledge and deliver to
Sublessor an amendment to this Sublease setting forth such Offered Space Commencement Date and reflecting the incorporation of such Offered Space into the demised premises, and the modifications to this Sublease resulting therefrom, as provided in
this Paragraph. The failure of either party to execute and deliver such an amendment shall not affect the rights of the parties under this Sublease. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Sublease as of the day and year first above written. 
  

									
	 	 	 	 	HARRISON & STAR, INC.
					
	 	 	 	 	 	 	By:	 	/s/
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name:
 Title:

  

									
	 	 	 	 	NPS PHARMACEUTICALS, INC.
				
	 	 	 	 	By:	 	/s/
	
	 	 	 	 	 	

	Federal Identification Number	 	 	 	 	 	 Name:
 Title:

  

 11Term Sheet between MaRS Discovery District and the Registrant

 EXHIBIT 10.17 
  
 TERM SHEET 
  
 This term sheet (the “Offer”) sets out and confirms the agreement between MaRS Discovery District (“Landlord”) and NPS Pharmaceuticals,
Inc. (“Tenant”) with respect to the lease of space within part of the Building municipally known as 101 College Street (South Tower) in the City of Toronto, Province of Ontario (the “Building”), on the terms and
conditions hereinafter set forth. 
  

	1.	Premises 

  
 Approximately 52,000 square feet of Rentable Area within the Building (the “Premises”). Premises to be located on the whole of the 7th and 8th floors and either all or part of the 6th floor, which are
typical floors of approximately 21,000 square feet each. Final estimated location and area of Premises to be mutually agreed to by the Landlord and Tenant (subject to Tenant’s final space plan) prior to January 31, 2004. The Tenant shall,
subject to the Landlord’s reasonable security restrictions and rules and regulations, have a non-exclusive right to use the common facilities of the complex in which the Building is located, 24 hours a day and seven days a week, including the
right to use the shipping and receiving docks and any other such common facilities required by the Tenant for the operation of the Tenant’s business. 
  

	2.	Basic Terms of Lease 

  

	 	 (a)	Term: ten (10) years and eight (8) months 

  

			
	 (b)    Commencement Date:
	  	The Commencement Date of the Lease shall be the later of: (i) five (5) days following substantial completion of the Landlord’s Work in the Premises for the purpose of permitting the Tenant
to commence the Tenant’s Work; and (ii) the date on which the Tenant obtains all building permits necessary for the purpose of permitting the Tenant to commence the Tenant’s Work, provided that in any event such date shall be no later than
thirty (30) days following substantial completion of the Landlord’s Work in the Premises. The Tenant undertakes to use reasonable commercial efforts to obtain in a timely manner all building permits necessary for the purpose of permitting the
Tenant to commence the Tenant’s Work in the Premises.

  
 The Landlord represents and warrants
to the Tenant that the ongoing work by the Landlord in respect of completing construction of the Building will not impair the ability of the Tenant to commence the Tenant’s Work or to obtain a building permit therefor to permit Tenant’s
Work to commence on the Commencement Date. 
  

	 	(c)	Anticipated date of delivery of possession of the Premises to Tenant (with substantial completion of Landlord’s Work) and subject to any events of force majeure:

  
 November 1, 2004 
  

	 	(d)	Rent Free Fixturing Period: First eight (8) months of the Term. The Fixturing Period shall be subject to extension for any delays in the carrying out of the Tenant’s Work
caused by events of force majeure, provided that in no event shall the rent free Fixturing Period extend beyond ten (10) months from the Commencement Date. For certainty, assuming the Commencement Date occurs on November 1, 2004 the Tenant agrees
that Base Rent shall commence in any event or circumstance no later than September 1, 2005. During the Fixturing Period, and subject to the foregoing, the Tenant shall be responsible only for the cost of utilities consumed, Tenant’s insurance
coverage in accordance with the Lease, insurance premiums incurred by the Landlord in connection with the Tenant’s occupancy of the Premises during the Fixturing Period, and any special operating costs i.e. security, waste disposal, etc. that
may be requested in writing by the Tenant or otherwise incurred by the Landlord as a result of the Tenant’s occupancy of the Premises during the Fixturing Period. The Landlord agrees that the Tenant can operate its business during the Fixturing
Period if it completes its Tenant’s Work prior to the end of the Fixturing Period. 

  

	 	(e)	Rentable Area of the Premises: approximately 52,000 sq. ft. to be measured by the Landlord’s Architect, no later than the Commencement Date, in accordance with BOMA (‘96)
standards used in the Building. 

  

	 	(f)	Base Rent: 

  

							
	 Period of Term

	 	 Annual Base Rent

	 	 Monthly Base Rent

	 	 Annual Base Rent per Square Foot

	 Years One to Five
	 	CAD $ 1,092,000.00	 	CAD $ 91,000.00	 	CAD $ 21.00 sq.ft.
	 Years Six to Ten
	 	CAD $ 1,144,000.00	 	CAD $ 95,333.33	 	CAD $ 22.00 sq.ft.

  
 Base Rent and Additional Rent to be
paid without set-off, abatement or deduction, in advance in twelve (12) equal monthly installments on the first day of each and every month of the Term, together with all taxes (including, without limitation, Goods and Services Tax, GST) based on
the Landlord’s Lease form and as applicable thereon. The Tenant acknowledges and agrees that the Landlord is not providing any leasehold improvement allowance or other inducement except for the Rent Free Fixturing Period described above.

  

	 	(g)	Deposit: 

  
 The Tenant agrees to pay to the Landlord upon execution of this Offer the sum of Ninety-One Thousand Dollars ($91,000.00), plus GST, to be applied on account of the first month’s base rent payable under the
Lease. 
  

	 	(h)	Net Lease: 

  
 The Lease shall be completely net to the Landlord, except as otherwise expressly provided herein, and the Tenant shall pay, in addition to Base Rent and without duplication, its proportionate share of all costs,
charges, expenses and outlays of any nature whatsoever arising from or relating to the management, maintenance, operation and repair of the Common Areas and Facilities of the Building (collectively “Additional Rent”), including
without limitation and without duplication, the following items (all as may be more fully detailed in the Lease): costs incurred by the Landlord in respect of the operation, maintenance, repair and replacement of the Common Areas and Facilities of
the Building; utility charges; property management/administration; and depreciation or amortization of any costs of a capital nature (in accordance with GAAP ) incurred by the Landlord in the repair, maintenance and replacement of the Common Areas
and Facilities, together with interest on the unamortized portion thereof at the Landlord’s cost of borrowing. Except as otherwise provided herein, Additional Rent shall also include Landlord’s insurance costs in respect of the Building
and Common Areas and Facilities and the Tenant’s Proportionate Share (as hereinafter defined) of all real property taxes in respect of the Building and Common Areas and Facilities as provided in Section 4 hereof. The Tenant’s Proportionate
Share (as hereinafter defined) of all such costs, charges and expenses shall be determined as if the rentable areas in the Building are 100% occupied. The Landlord shall provide a reasonable estimate of the amount of Additional Rent, prior to the
Commencement Date and on each anniversary of the Commencement Date in each successive year of the Term. 
  
 Notwithstanding any other provision of this Offer or the Lease arising therefrom (the “Lease”), the Tenant shall not be liable to pay Additional Rent arising from or in respect of: 
  

	(i)	costs for any other rentable space in the Building, including janitorial and HVAC costs, of the type for which the Tenant is responsible in respect of the Premises; for certainty,
this includes the Landlord’s expenses arising from or in respect of rentable space occupied by the Landlord in the Building; and 

  

	(ii)	costs related to the initial cost of constructing or any costs refurbishing or upgrading the Building (although costs of replacements shall be included in Additional Rent as
specified in the Lease). 

  

 - 2 - 

 Property management and administration fees and costs shall be limited to 15% of Additional Rent (excluding real property
taxes and insurance premiums). 
  
 The Tenant shall not be responsible for paying
Additional Rent or outlays of any nature whatsoever arising from or relating to the management, maintenance, operation or repairs of any parking garage. 
  
 The Tenant’s proportionate share (“Proportionate Share”) shall be determined by using a formula the numerator of which is the rentable area of the
Premises and the denominator of which is the total rentable area of the Building. All rentable areas to be determined in accordance with BOMA (‘96) standards. 
  

	3.	Repairs 

  
 Save and except for structural repairs to the base building and exterior wall and window repairs or replacements, the Tenant shall, at its sole cost and expense, at all times during the term of the Lease and any
renewal(s)/extension(s) thereof, keep and maintain the whole of the Premises in good order, repair and condition, reasonable wear and tear excepted, provided that the cumulative effect of such wear and tear does not result in a state of disrepair.

  

	4.	Taxes 

  
 The Tenant shall be solely responsible for and shall promptly pay without duplication throughout the Term its Proportionate Share of all realty taxes, local improvements and business taxes with respect to the
Building. The Landlord will pay or cause to be paid all such taxes on the Building. 
  

	5.	Utilities 

  
 The Tenant shall be solely responsible for and shall promptly pay without duplication its Proportionate Share of all charges for water, gas, electricity, telephone and other public and private utilities and services
used or consumed in respect of the Common Areas and Facilities of the Building. The Premises shall be separately metered wherever possible and the Tenant shall be responsible for payment of all charges for all utilities consumed within the Premises.

  

	6.	Insurance 

  

	 	(a)	The Landlord shall take out and keep in force the following insurance coverage: 

  

	 	(i)	“All Risks” insurance with 100% replacement cost coverage of the Building, machinery, boilers and equipment contained therein; 

  

	 	(ii)	general liability and property damage insurance, including personal liability, contractual liability, non-owned automobile liability. Such policies shall be written on a
comprehensive basis with coverage for any one occurrence or claim of not less than $5,000,000.00; and 

  

	 	(iii)	loss of rental income coverage. 

  

	 	(b)	The Tenant shall take out and keep in force such insurance coverage as may be reasonably required by the Landlord from time to time, including without limitation:

  

	 	(i)	“All Risks” property insurance on leasehold improvements and fixtures owned by the Tenant on a replacement cost basis with a reasonable deductible (the Tenant shall be
entitled to self-insure in respect of chattels and trade fixtures); and 

  

	 	(ii)	general liability and property damage insurance, for occurrences within the Premises, including personal liability, contractual liability. Such policies shall be written on a
comprehensive basis with coverage for any one occurrence or claim of not less than $5,000,000.00. The said policy shall name the Landlord as additional insured. 

  

 - 3 - 

	 	(c)	Each policy of insurance taken out by the parties in accordance with this Offer and each of such policies shall contain a release and waiver by the insurer of any rights of
subrogation or indemnity or any other claim over, to which such insurer might otherwise be entitled against the Landlord or the Tenant, their agents, employees or those for whom they are in law responsible. 

  

	 	(d)	All policies referred to in Section 6(b) shall be taken out with insurers reasonably acceptable to the Landlord, be in a form reasonably satisfactory to the Landlord, shall be
non-contributing with and shall apply only as primary and not as excess to any other insurance available to the Landlord and shall contain an undertaking by the insurers to notify the Landlord not less than thirty (30) days prior to any material
change, cancellation or termination. The Tenant shall provide the Landlord prior to the commencement of the fixturing period with a certificate of such insurance and each year on the anniversary date thereof shall provide the Landlord with a further
certificate confirming that the Tenant has arranged all of the insurance required to be maintained by it under Section 6(b) hereof. 

  

	7.	Permitted Use 

  
 The Premises shall be used only for the purposes of a medical and related sciences research facility, which shall include performing all forms of laboratory research, testing and experimenting including conducting
chemical synthesis research and experiments, biological and genetic research and experiments, human tissue research and experiments and experiments and tests on live animals as well as other research, experiments and tests tied to medical and
related science research, and related office uses, and for no other purpose and provided that the Premises shall at all times be used and maintained by the Tenant in compliance with all applicable laws. The Tenant shall be permitted to conduct all
aspects of its business permitted hereunder and have uninterrupted access to the Premises twenty-four (24) hours a day seven days a week. For the purpose of conducting its research, tests and experiments the Tenant shall be permitted to use and
store on the Premises hazardous materials and compounds and radioactive materials provided such use and storage is and shall be in full compliance with all applicable laws related thereto and sound industry practices. The Landlord represents that
the above are permitted uses of the Premises. The Tenant shall be responsible at its sole cost and expense for obtaining any permits and/or licenses required or associated with its use and occupancy of the Premises. The Tenant shall operate its
business as aforesaid in the Premises in compliance with all applicable laws. The Lease shall contain no continuous occupancy requirement. 
  

	8.	Assignment and Subletting 

  
 Save as otherwise provided herein the Tenant shall not assign this Offer or the Lease or sublet all or part of the Premises without having first obtained the prior written consent of the Landlord which consent may not
be unreasonably withheld and in accordance with and subject to the provisions with respect to assignments and subleases in the Landlord’s standard form lease for the Building which shall be negotiated between the parties as set out in Section
19 hereof. Notwithstanding any such assignment, the Tenant shall not be released from and shall continue to be responsible for all of its obligations under the Lease. The Landlord agrees that the assignment and sublease clause in the Lease shall not
contain a termination option in favour of the Landlord in the event of an assignment or sublease by the Tenant. 
  
 Notwithstanding any other provisions of this Offer or the Lease, so long as the Tenant or any permitted transferee or assignee (“Permitted Assignee”) is
not in default under the terms of the Lease, the Tenant shall not require the Landlord’s consent (but in each case shall provide the Landlord with notice at the time thereof or as soon as reasonably possible thereafter) for any of the following
transfers: 
  

	 	(a)	an assignment to any corporation which is an affiliate (within the meaning of the Canada Business Corporations Act) of the Tenant or any Permitted Assignee
(“Affiliate”); 

  

	 	(b)	an assignment to a corporation formed as a result of a merger or amalgamation (within the meaning of the Canada Business Corporations Act) of the Tenant or Permitted Assignee
with another corporation or corporations; or 

  

 - 4 - 

	 	(c)	where the Tenant proposes to transfer, or issue by sale, assignment, bequest, inheritance, operation of law, or other disposition, or by subscription, any part or all of the
corporate shares of the Tenant, so as to result in any change in the effective voting control of the Tenant by the party or parties holding such voting control and such transaction shall not be deemed to be an assignment of this Offer or the Lease;
or 

  

	 	(d)	an assignment arising out of the sale (by assets or shares) of the business of the Tenant being conducted in the Premises; or 

  

	 	(e)	a licence of a portion of the Premises to an affiliated entity, in connection with the business being conducted therein. 

  
 The Tenant agrees that an assignee of the Lease, where the assignee is not a Permitted
Assignee, or a subtenant each shall not have the benefit of this no consent provision if it has been in material default on more then two (2) occasions during the Term. 
  

	9.	Alterations 

  
 The Tenant shall not make any repairs, alterations, replacements, decorations or improvements to any part of the structural or exterior portion of the Premises or any of the Building’s base building systems
(including without limitation the mechanical, electrical, plumbing or HVAC systems of the base Building but excluding such systems which have been installed by the Tenant in the Premises which do not affect the Landlord’s base building systems
or other tenants’ systems) without first obtaining the Landlord’s prior written approval, which approval shall not be unreasonably withheld. So long as repairs, alterations, replacements, decorations or improvements do not affect the
structural or exterior portion of the base building or any of the Building’s base building systems (including without limitation the mechanical, electrical, plumbing or HVAC systems of the base Building) the Tenant shall be permitted to make
all reasonable repairs, alterations, replacements, decorations, reconfigurations or improvements to, on and at the Premises. 
  
 If a request is made by the Tenant with respect to structural or exterior matters or matters which affect the base Building outside the Premises or the capacities
thereof, or any of the Building’s base building systems (including without limitation the mechanical, electrical, plumbing or HVAC systems of the Building) which is approved by the Landlord, the Landlord may require that such work be designed
by consultants acceptable to the Landlord, acting reasonably, and that the work be performed by contractors acceptable to the Landlord, acting reasonably. 
  
 The Tenant acknowledges that any repairs, alterations, replacements or improvements of a structural nature to the Building, or any repairs, alterations, replacements or
improvements which may materially affect the mechanical and/or other base systems within the Building, including without limitation, heating, ventilating and air conditioning, plumbing and electrical systems, require the written approval (not to be
unreasonably withheld or delayed) of the Landlord. 
  
 The Tenant agrees that, on
or before the expiry of the fifth (5) month following execution of this Term Sheet by both parties, it shall provide the Landlord with the following preliminary plans, drawings and specifications for the approval of the Landlord and the Landlord
(where required) in accordance with the foregoing, namely: 
  

	 	•	Architectural; 

  

	 	•	Structural (if any); 

  

	 	•	Electrical; 

  

	 	•	Mechanical, including plumbing, heating, air conditioning, sprinklers, ventilation and instrumentation 

  
 (collectively the “Tenant’s Plans”) 
  

 - 5 - 

 The Landlord shall have a period of thirty (30) days following submission of the Tenant’s Plans to the Landlord
within which to approve same, such approval not to be unreasonably withheld. If the Tenant’s Plans are not approved or acting reasonably disapproved by the Landlord within thirty (30) days following the submission thereof to the Landlord for
its approval, the Tenant shall have a period of five (5) business days thereafter to terminate this Offer and the Lease without penalty. In the event the Tenant elects to terminate, this Offer and the Lease shall be null and void and of no further
force or effect. If within five (5) business days following the expiry of the thirty (30) day period for the approval of the Tenant’s Plans by the Landlord the Tenant does not elect to terminate this Offer and the Lease by written notice to the
Landlord this Offer and the Lease shall remain in full force and effect in accordance with its terms. 
  

	10.	Environmental 

  
 The Tenant agrees to maintain the Premises and conduct its business and operations therein at all times in strict compliance with all applicable environmental laws and sound industry practice. The Tenant shall be
responsible for and shall indemnify the Landlord against any and all environmental damage or contamination on the Premises and/or the surrounding lands caused or contributed to by the Tenant or those for whom it is responsible in law. 
  

	11.	Fixtures and Improvements 

  
 All alterations, additions, fixtures and improvements installed or made by the Tenant or installed or made by the Landlord on the Tenant’s behalf shall not merge with the leasehold and shall remain the property
of the Tenant. When not in default under the Lease, the Tenant may remove such alterations, additions, improvements or fixtures from the Premises either during or at the expiration of the Term or sooner determination of the Lease provided that the
Tenant shall make good any damage caused to the Premises by its installation and removal of any such alteration, addition, improvement or fixtures, so long as the Premises remain in the condition that they are required to be maintained during the
Term. For greater certainty, at the end of the Term or sooner determination of the Lease, the Tenant shall not be required to remove any alterations, additions, fixtures and improvements in the Premises. 
  

	12.	Subordination 

  
 At the time of and as a condition precedent to the execution of the Lease, the Landlord shall obtain from any mortgagee or other party with a security interest in the Premises which is prior to this Offer or the
Lease, a Non-Disturbance Agreement in form and substance acceptable to the Tenant, acting reasonably. At the request of the Landlord or its mortgagee, this Offer and the Lease may be subordinated to any charge or charges from time to time created or
granted by the Landlord with respect to the Premises provided a Non-Disturbance Agreement is obtained, as aforesaid. The Landlord represents that it is the registered and beneficial owner of the Building and has the authority to enter into this
Offer without the necessity of having any third party consents. 
  

	13.	Landlord’s Conditions 

  
 INTENTIONALLY DELETED 
  

	14.	Tenant’s Conditions 

  
 INTENTIONALLY DELETED 
  

	15.	Landlord’s Work 

  
 The Landlord shall construct the Building of which the Premises forms part, in accordance with plans and specifications as follows: Architectural: November 20, 2003, Mechanical/Electrical: November 8, 2003,
Structural: November 19, 2003, Security: November 10, 2003 which have been provided to the Tenant (the “Landlord’s Work”). No later than February 20, 2004, the Landlord will provide the Tenant with an updated and current set of
plans and specifications in respect of the Landlord’s Work (the “Final Plans”). If the Tenant is not satisfied with the scope of Landlord’s Work or the Landlord elects not to implement any modifications reasonably required
by the 

  

 - 6 - 

 
Tenant in order to efficiently operate its business, the Tenant will not be permitted to insist upon the modifications not so implemented but, in lieu
thereof, the Tenant may elect to terminate the agreement arising out of this Offer provided such election to terminate is exercised by notice in writing to the Landlord on or before February 27, 2004. No changes may be made to the Final Plans which
materially adversely affect (i) the Tenant’s Work, (ii) the cost of completing Tenant’s Work or (iii) the efficient operation of the Tenant’s business without the consent of the Tenant. For the purposes of this Offer and the Lease the
condition of the Building as delivered to the Tenant on completion of the Landlord’s Work shall be deemed to be the base building condition. Subject to events of force majeure, the Landlord’s Work shall be completed by no later than
November 1, 2004. Should the Landlord’s Work not be completed by December 1, 2004 as a result of a default by the Landlord that is not an event of force majeure, the Tenant shall be entitled to two (2) days’ free basic rent, prorated based
on a 30 day month, for each day after December 1, 2004 that the Landlord’s Work is not substantially completed and the Tenant has not been delivered possession of the Premises. The Fixturing Period shall commence on the
Commencement Date of the Lease specified in Section 2(b) hereof. The Landlord undertakes to use reasonable commercial efforts to provide the Tenant with as much advance written notice as is reasonably possible as to the anticipated date of
Substantial Completion of the Landlord’s Work in the Premises, which in any event shall be at least five (5) days advance notice. The parties agree that two (2) days’ free basic rent for each day after December 1, 2004 that the
Landlord’s Work is not substantially performed and the Tenant has not been delivered possession of the Premises is a representation of the true damages that the Tenant will suffer as a result of any delay in the substantial completion of the
Landlord’s Work and the Landlord’s failure to deliver possession of the Premises and is not a penalty. Should the Tenant not be delivered possession of the Premises by November 1, 2005, for any reason whatsoever, then at the Tenant’s
sole option and discretion the Tenant may terminate the Offer and the Lease, and damages will be calculated in their usual manner. 
  
 During the Fixturing Period the Tenant shall be responsible for all work within the Premises, in addition to the Landlord’s Work, which may be necessary to operate
the Tenant’s business therein (the “Tenant’s Work”). Prior to the commencement of the Fixturing Period, the Tenant shall provide a copy of its plans and specifications for the Tenant’s Work to the Landlord for its
prior written approval prior to commencing construction, not to be unreasonably withheld or delayed. 
  

	16.	Control by the Landlord 

  
 The Landlord acknowledges and agrees that the Tenant’s business and work is of a highly confidential nature and requires additional precautions to be taken with respect to access to and from the Premises. Save
and except as otherwise provided, the Landlord, and/or any agent, employee or other person acting on behalf of the Landlord shall not have access to the Premises, except in the event of an emergency, without reasonable grounds for believing that the
Tenant is in breach of its obligations under the Lease and providing no less than twenty-four (24) hours’ prior written notice to the Tenant. Notwithstanding the foregoing, the Landlord and/or any agent, employee or other person acting on
behalf of the Landlord shall be permitted to conduct periodic inspections of the Premises on providing a minimum of twenty-four (24) hours’ prior written notice to the Tenant. Any party requiring access shall take such reasonable precautions as
to ensure the safety and security of the Premises and property of the Tenant and where required by the Tenant will be escorted by a representative of the Tenant during such access. 
  
 Save as otherwise provided, unless the Tenant is in default of its obligations under the Lease, and such default continues for five (5)
business days after receiving notice thereof from the Landlord, the Landlord, and/or any agent, employee or other person acting on behalf of any of these parties shall not have access to the Premises for any other purpose except as necessary to:

  

	 	(a)	subject to the Tenant’s obligations under this Offer and the Lease, construct, maintain, repair, replace and operate lighting facilities and heating, ventilating and air
conditioning systems servicing the Premises or the Building to the extent existing within the Premises; and 

  

	 	(b)	provide supervision and policing services for the Building. 

  
 The Tenant acknowledges and agrees that the foregoing covenants shall not apply during the last six (6) months of the Term of the Lease and that during such period, the
Landlord shall be entitled to show the Premises to potential tenants on at least seventy-two (72) hours’ prior written notice to the Tenant and subject to the Tenant’s reasonable 

  

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security requirements and supervision. The Landlord acknowledges that the Tenant may prohibit access to certain areas of the Premises to the extent that
access thereto will interrupt the Tenant’s business in the Premises. The Landlord acknowledges that, whenever the Landlord enters the Premises for any purpose, including in the event of an emergency, the Landlord shall respect the
confidentiality of the Tenant’s business and the sensitive and proprietary nature of the Tenant’s operations and shall use its reasonable commercial efforts not to disrupt, impair or interfere with any of the activities the Tenant is
carrying on in the Premises. 
  

	17.	Refuse 

  
 The Tenant shall be responsible to ensure that all medical waste and similar refuse is handled, stored and disposed of at all times in strict compliance with all applicable laws and sound environmental practice.

  

	18.	Signs 

  
 The Tenant shall be permitted to paint, fix, display, or cause to be painted, fixed or displayed, any sign, picture, awning, canopy, advertisement, notice, lettering or decoration on any part of the interior of the
Premises without, in each instance, the prior written approval of the Landlord. The Tenant shall remove all such signs etc. at the expiration or earlier termination of the Term and shall repair all damage caused by the installation and/or removal
thereof. 
  

	19.	Lease Form 

  
 The parties agree to execute a lease in a mutually acceptable form, based on the Landlord’s standard form lease, incorporating the terms of this Offer modified as requested by the Tenant and agreed to by the
Landlord, both parties acting reasonably and in good faith, within fifteen (15) business days of Tenant initially receiving same. The Tenant acknowledges and agrees that the Commencement Date may not occur and the Tenant shall not be permitted
access to the Premises for any purpose whatsoever including carrying out any of the Tenant’s Work until the Tenant and Landlord have executed the agreed upon form of Lease. However, if each of the Landlord and the Tenant has agreed upon the
form of lease and the Landlord has executed the same and delivered it to the Tenant, the Commencement Date shall occur but the Tenant will not be permitted access to the Premises for any purpose whatsoever until the Tenant has executed the Lease and
delivered a copy thereof to the Landlord. 
  
 No relocation of all or any
portion of the Premises by the Landlord will be permitted. 
  
 The parties
acknowledge and agree that the Lease shall deal in greater detail than this Offer in that certain clauses in the Offer may be expanded upon in the Lease and the Lease contains clauses in addition to those in this Offer. If there is any conflict
between this Offer and the standard form lease, this Offer shall govern until the Lease is executed and once executed the Lease shall govern. 
  
 The Landlord and Tenant agree that the Lease shall include the following provisions: 
  

	 	(a)	a provision to the effect that, as between the Landlord and the Tenant, all leasehold improvements constructed by the Tenant as part of the Landlord’s Work and at any time or
times during the Term shall, during the Term of the Lease, shall remain the property of the Tenant and shall be removable by the Tenant at its election at the end of the Term unless the Term expires or the Lease is terminated by reason of the
default of the Tenant, and provided that the Tenant repairs and makes good any damage caused to the Premises by the installation and removal of any such leasehold improvements; 

  

	 	(b)	permit the Tenant to register notice of the Lease which may include all key provisions of the Lease which the Tenant requires be registered, including the provisions of subclause
(a) hereof. The Tenant shall not register such notice of lease (or any other instrument) without the prior written consent of the Landlord, such consent not to be unreasonably withheld. 

  

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	20.	Entire Agreement 

  
 The parties acknowledge and agree that this Offer contains all the covenants, promises, agreements, conditions and understandings between the Landlord and the Tenant concerning the Premises and there are no covenants,
promises, agreements, conditions, understandings, warranties or representations, either oral or written, between them or relied upon by the Tenant to induce it to enter into this Offer, other than are herein set forth. 
  

	21.	Option to Renew 

  
 The Tenant, provided it is not then in default under the terms of the Lease beyond any applicable permitted cure period, shall have the right to renew the term of the Lease for two further periods of 5 years, upon the
same terms and conditions contained in the Lease save as to further rights of renewal, save and except that there shall be no rent-free fixturing period or Landlord’s Work, and save and except as to the Base Rent payable during such renewal
term, which shall be at the then current fair market rate for similar unimproved premises in the Building, provided that if the Landlord and Tenant cannot agree as to the Base Rent payable in a renewal term by sixty (60) days prior to the
commencement of such term, then such Base Rent shall be determined by a single arbitrator pursuant to the Arbitrations Act, 1991. The Tenant shall notify the Landlord in writing of its intent to renew the lease in accordance with the
foregoing by no later than one hundred and eighty (180) days prior to the expiration of the original term or any renewal term, as applicable. 
  

	22.	Right of First Offer 

  
 Provided the Tenant is not then in default beyond any cure period set out in this Lease, the Tenant shall benefit from a right of first offer on any unleased vacant space on the 5th and any space not initially leased by it on the 6th floors in the Building (South Tower) (the “Vacant Space”). For certainty, Vacant Space shall not include any space leased by the Landlord to any other tenant and which is offered by
such tenant for sub-leasing. This right of first offer shall not apply until the Commencement Date of the Term has occurred and the Tenant has taken occupancy of the Premises. Accordingly, if during the Term, any part of the Vacant Space becomes or
shall become available for rent, the Landlord shall offer the Vacant Space to the Tenant, in writing, on the same terms and conditions as this Lease, with the exception of the following: 
  

	 	(a)	the term for the Vacant Space shall terminate at the same time as the Term; 

  

	 	(b)	the Base Rent which shall be the fair market rent for the Vacant Space; and 

  

	 	(c)	any Rent Free Fixturing Period shall not exceed six (6) months 

  
 The Tenant undertakes to advise the Landlord of its acceptance or refusal of the Landlord’s offer for all or a portion of the Vacant Space within 5 business days
following its receipt of same. If the Tenant decides to accept the Landlord’s offer for all or a portion of the Vacant Space, the parties shall sign an amendment to the Lease within 30 days following the Tenant’s acceptance of the offer.
If the Tenant does not accept the offer or if the Tenant does not respond to same within the prescribed time limit, the Landlord may lease the Vacant Space to a third party on terms and conditions no more favourable to the third party than those
offered to the Tenant. Notwithstanding the foregoing provisions of this paragraph, any acceptance by the Tenant to lease a portion only of the Vacant Space shall be subject to the Landlord’s approval as to the size, configuration and location
thereof, which approval shall be granted unless all or some portion of the Vacant Space included in the Landlord’s offer and not included within the portion accepted by the Tenant is not reasonably able to be leased by the Landlord to a third
party or parties. 
  

	23.	Damage or Destruction 

  
 In respect of substantial damage or destruction of the Building or the Premises, which materially affects the Tenant’s ability to conduct its business within the Premises, neither party shall have the ability to
terminate the Lease unless the damage is not able to be repaired within 180 days. 
  

	24.	Other Provisions 

  
 The Landlord agrees to waive in the Lease its remedy of distress in the event of a default by the Tenant under the Lease. The Landlord further agrees that the Lease shall not provide for a security interest in favour
of the Landlord. 
  

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	25.	Irrevocable Date 

  
 This Offer is irrevocable by the Tenant and shall remain open for acceptance until 5:00 p.m. on             , 200    ,
after which this Offer shall become null and void. 
  
 The Tenant represents and
warrants that the undersigned have authority to bind the Tenant to the terms of the within Offer. 
  
 SIGNED AND DATED at                      this
                     day of         , 2004. 
  

			
	NPS PHARMACEUTICALS, INC. (Tenant)
		
	Per:	 	 /s/ HUNTER JACKSON

	 	 	

	 Name:
	 	 
		
	Per:	 	 /s/ JAMES U. JENSEN

	 	 	

	 Name:
	 	 
	
	 I/We have authority to bind the Corporation.

  
 The Landlord hereby accepts this
Offer to Lease and agrees to be bound by the terms and conditions contained herein. 
  
 SIGNED AND DATED at Toronto this 23 day of January         , 2004. 
  

			
	MARS DISCOVERY DISTRICT (Landlord)
		
	Per:	 	 /s/ JOHN A. COOK

	 	 	

	 Name:
	 	 John A. Cook

		
	Per:	 	 /s/ NINA GAZZOLA

	 	 	

	 Name:
	 	 Nina Gazzola

	
	 I/We have authority to bind the Corporation.

  

 - 10 -

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