Document:

AMENDMENT TO LEASE

FIRST AMENDMENT TO BUILD-TO-SUIT LEASE

This First Amendment to Build-to-Suit Lease ("First
Amendment") is made and entered into as of March 29, 2000, by and
between BRITANNIA POINTE GRAND LIMITED PARTNERSHIP, a Delaware limited
partnership ("Landlord"), and EXELIXIS, INC. (formerly known as
Exelixis Pharmaceuticals, Inc.), a Delaware corporation
("Tenant"), with reference to the following facts:

A.Landlord and Tenant are parties to a Build-to-Suit Lease dated as of
May 12, 1999 (the "Lease") covering, among other things, a
building presently under construction ("Building 1") on
certain property owned by Landlord (the "Phase 1
Property") on Harbor Way in the City of South San Francisco, County of
San Mateo, State of California.  The Lease also includes various options and
rights on the part of Tenant to have a second building constructed by Landlord,
subject to certain conditions set forth in the Lease, on either the
Phase 2-A Property or the Phase 2-B Property as defined in the Lease.
Terms used in this First Amendment as defined terms but not defined herein shall
have the meanings assigned to such terms in the Lease.

B.By letter dated September 27, 1999, Landlord (through its counsel)
gave Tenant a Phase 2-B Acquisition Notice under Section 1.1(c)(iii)
of the Lease, notifying Tenant that Landlord had Acquired the Phase 2-B
Property.  By letter dated December 20, 1999, Tenant exercised its option
under Section 1.1(c) of the Lease to have a building constructed on
the Phase 2-B Property and leased to Tenant, subject to the parties
entering into a mutually acceptable lease agreement.

C.Landlord and Tenant have now reached mutual agreement on the terms and
conditions to be applicable to the construction, leasing and occupancy of a new
building to be constructed on the Phase 2-B Property and, in compliance
with Section 1.1(c)(iii)(A) of the Lease, are entering into this First
Amendment to set forth such terms and conditions in a written lease
amendment.

NOW, THEREFORE, in reliance upon the foregoing recitals and upon the mutual
agreements set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
agree as follows:

1.Leasing of Building 2; Connector Bridge.

(a)Landlord shall construct and lease to Tenant, and Tenant shall lease
from Landlord, subject to all of the terms and conditions of the Lease as
amended by this First Amendment, a two-story office and laboratory building of
approximately 49,000 square feet ("Building 2") to be
located on the real property described as the Phase 2-B Property in the
Lease and more particularly described on Exhibit A attached to this
First Amendment and incorporated herein by this reference (the
"Phase 2 Property").

(b)Substantially concurrently with the construction of Building 2,
Landlord shall also construct, for the exclusive use of Tenant and its
employees, suppliers, shippers, customers and invitees during the term of the
Lease, an elevated connector bridge between Building 1 and Building 2
(the "Connector Bridge").  Upon substantial completion of the
Connector Bridge and delivery of possession and use of the Connector Bridge to
Tenant, the Connector Bridge shall be construed to be part of the Buildings for
all purposes under the Lease, except that the square footage of the Connector
Bridge shall not be taken into account in determining minimum rental amounts for
Building 1 and/or Building 2 under Section 3.1(c) of the Lease,
as amended.

(c)Exhibit A to the Lease is hereby amended by replacing the
description of the Phase 2-B Property as set forth therein with the more
precise description set forth in Exhibit A attached to this First
Amendment.  For purposes of this First Amendment and of the Lease as amended
hereby, references to "the Phase 2 Property" shall be construed
to refer to the Phase 2 Property as described in Exhibit A
attached to this First Amendment.

(d)The location of Building 2 on the Phase 2 Property and the
general design and layout of Building 2 as presently contemplated by the
parties are shown on Exhibit B attached hereto and incorporated
herein by this reference, subject to any subsequent modifications made by
Landlord or by mutual agreement of the parties in accordance with the terms of
the Lease as amended hereby.  To the extent of any conflict between
Exhibit B attached hereto and the Site Plan attached as
Exhibit B to the Lease, Exhibit B attached hereto shall
be controlling with respect to Building 2 and the Phase 2
Property.

2.Term.  The Termination Date for the Lease shall be determined in
accordance with the provisions of the Lease and is not affected by this First
Amendment.  Section 2.1(b) of the Lease is amended to read in its entirety as
follows:

"(b)Tenant's minimum rental and Operating Expense obligations with
respect to Building 2 and the Phase 2 Property shall commence on the
earlier of (i) the date which is six (6) months after the date Landlord
delivers to Tenant a Structural Completion Certification for Building 2
pursuant to the Workletter attached to this Lease as Exhibit C, as
amended by the First Amendment to this Lease (subject to any adjustments
authorized or required under the provisions of such Exhibit C, as
amended), correctly notifying Tenant that Landlord's construction of the shell
of Building 2 pursuant to Article V and Exhibit C is
substantially complete, but in no event earlier than the date (adjusted for any
Tenant Delay, as defined in Exhibit C, which delays Landlord's
completion of the construction of the Connector Bridge) on which the
construction of the Connector Bridge is substantially completed in all material
respects, subject only to completion of Punch List Work (as defined in
Exhibit C), or (ii) the date Tenant takes occupancy of and commences
operation of its business in Building 2, the earlier of such dates being
herein called the "Phase 2 Rent Commencement Date"), and
shall end on the Termination Date, unless sooner terminated or extended (if
applicable) as hereinafter provided.  The parties presently contemplate that the
delivery of the Structural Completion Certificate for Building 2 will occur
on approximately September 1, 2000 and that the Phase 2 Rent
Commencement Date will occur on approximately March 1, 2001."

3.Delay in Possession.  For purposes of the first sentence of
Section 2.3 of the Lease, Exhibit D attached to this First
Amendment and incorporated herein by this reference (as hereafter modified,
updated or supplemented by the parties from time to time) sets forth the
Estimated Construction Schedule that Landlord shall use its best reasonable
efforts to meet with respect to the construction of Landlord's work on
Building 2 and the Connector Bridge.

4.Minimum Rental.  Except as otherwise expressly provided below,
the rental provisions set forth in Section 3.1 of the Lease shall be
construed to apply solely to Building 1 and the Phase 1 Property and,
as applied to Building 1 and the Phase 1 Property, are not affected by
this First Amendment.  The rental provisions applicable to Building 2 and
the Phase 2 Property are as follows:

(a)Tenant shall pay to Landlord as minimum rental for Building 2, in
advance, without deduction, offset, notice or demand, on or before the
Phase 2 Rent Commencement Date and on or before the first day of each
subsequent calendar month of the term of the Lease, the amounts per month set
forth below in the column headed "Monthly Minimum Rental," subject to
adjustment in accordance with the terms of this Paragraph 4
(provided, however, that the "Months" indicated in the left-
hand column of the following table are to be measured from the
Phase 1 Rent Commencement Date, with the result that if, for
example, the Phase 1 Rent Commencement Date occurs on May 1, 2000 and
the Phase 2 Rent Commencement Date occurs on March 1, 2001, Tenant
shall pay minimum rental for Building 2 at the rate indicated for Months
001-012 for the months of March 2001 and April 2001, then shall pay minimum
rental for Building 2 at the rate indicated for Months 013-024 beginning
with the month of May 2001, since that will be Month 013 as measured from the
Phase 1 Rent Commencement Date):

  MonthsMonthly Minimum Rental

001 - 012$  131,810  ($2.69/sq ft)

013 - 024    151,410  ($3.09/sq ft)

025 - 036    155,330  ($3.17/sq ft)

037 - 048    159,250  ($3.25/sq ft)

049 - 060    163,660  ($3.34/sq ft)

061 - 072    168,070  ($3.43/sq ft)

073 - 084    171,990  ($3.51/sq ft)

085 - 096    176,890  ($3.61/sq ft)

097 - 108    163,660  ($3.34/sq ft)

109 - 120    168,560  ($3.44/sq ft)

121 - 132    174,440  ($3.56/sq ft)

133 - 144    161,210  ($3.29/sq ft)

145 - 156    167,090  ($3.41/sq ft)

157 - 168    155,820  ($3.18/sq ft)

169 - 180    162,190  ($3.31/sq ft)

181 - 192    168,560  ($3.44/sq ft)

193 - 204    174,930  ($3.57/sq ft)

If the obligation to pay minimum rental hereunder commences on other than the
first day of a calendar month or if the term of the Lease terminates on other
than the last day of a calendar month, the minimum rental for such month shall
be prorated based on the number of days the minimum rental obligation with
respect to Building 2 is in effect during such month.  If an increase in
minimum rental becomes effective on a day other than the first day of a calendar
month, the minimum rental for that month shall be the sum of the two applicable
rates, each prorated for the portion of the month during which such rate is in
effect.

(b)If Tenant properly exercises its right to extend the term of the Lease
pursuant to Section 2.6 thereof, the minimum rental for both Buildings
during the extended term(s) shall be determined in accordance with the procedure
set forth in Sections 3.1(b) and 3.1(c) (if applicable) of the Lease.

(c)The minimum rental amounts specified in this Paragraph 4 are
based upon an estimated area of 49,000 square feet for Building 2.  If the
actual area of Building 2 (measured from the exterior faces of exterior walls
and from the dripline of any overhangs, except that in the case of any two-story
recesses or overhangs, the area to the dripline of the overhang shall be counted
as part of the area of the first story but not as part of the area of the second
story), when completed, is greater or less than 49,000 square feet, then the
minimum rental amounts otherwise applicable under this First Amendment with
respect to Building 2 shall be adjusted for each rental period in strict
proportion to the ratio between the actual area of Building 2 (determined
on the basis of measurement described above in this sentence) and the assumed
area of 49,000 square feet.  Measurement of building area under this paragraph
shall be made initially by Landlord's architect, subject to review and approval
by Tenant's architect.

(d)The minimum rental amounts specified in Paragraph 4(a) assume
that Landlord will incur, in the form of required payments to the City of South
San Francisco, the Redevelopment Agency of the City of South San Francisco,
and/or the owners and occupants of the parcels constituting the Phase 2
Property in connection with the eminent domain proceedings presently underway
for the acquisition of such parcels (including, but not limited to, any required
payments of compensation for condemned fee or leasehold interests, loss of
goodwill, relocation expenses, attorneys' fees and other compensable items for
which Landlord is responsible under applicable law or under the terms of its
Disposition and Development Agreement with the Redevelopment Agency of the City
of South San Francisco), aggregate acquisition costs of $2,505,000.00 for the
Phase 2 Property.  If, upon final completion of all eminent domain
proceedings and all related litigation concerning the acquisition of the
Phase 2 Property, Landlord's aggregate actual acquisition costs for the
Phase 2 Property as described in the preceding sentence exceed
$2,505,000.00, then fifty percent (50%) of the amount of such excess shall
constitute "Excess Acquisition Costs" and Tenant shall pay to
Landlord, as additional monthly rental for Building 2 during each month
beginning on the Phase 2 Rent Commencement Date and continuing throughout
the initial term of the Lease, an amount determined as follows:

(i)During the period from the Phase 2 Rent Commencement Date until
the first anniversary of the Phase 2 Rent Commencement Date, such
additional monthly rental shall be equal to the amount necessary and sufficient
to amortize the Excess Acquisition Costs on a level payment basis over the
period from the Phase 2 Rent Commencement Date until the scheduled
expiration date for the initial Term of the Lease, with an imputed return at the
rate of twelve percent (12%) per annum; and

(ii)During each subsequent one-year period from the first anniversary of
the Phase 2 Rent Commencement Date until the expiration of the initial Term
of the Lease (including, if applicable, any final period of less than one year
between such expiration date and the immediately preceding anniversary of the
Phase 2 Rent Commencement Date), such additional monthly rental shall be
equal to one hundred four percent (104%) of the additional monthly rental in
effect during the immediately preceding one-year period.

Landlord's sole rights with respect to recovering any portion of the Excess
Acquisition Costs shall be through the additional monthly rental payable by
Tenant hereunder and through those remedies available to Landlord under the
Lease or under applicable law for the enforcement of rental obligations in the
event of a default by Tenant under the Lease.  To the extent Landlord's
aggregate actual acquisition costs for the Phase 2 Property have not been
finally determined as of the Phase 2 Rent Commencement Date, any rental
adjustment determined to be appropriate under this paragraph upon such final
determination shall be calculated retroactively to the Phase 2 Rent
Commencement Date and the additional rental amounts allocable to the period from
the Phase 2 Rent Commencement Date until the date of such final
determination shall be paid by Tenant to Landlord in a single lump sum within
thirty (30) days after Landlord gives Tenant written notice of such final
determination.

(e)The Monthly Minimum Rental amounts specified in Paragraph 4(a)
above assume a total Cost of Improvements (defined in accordance with
Paragraph 2(c) of the Workletter attached as Exhibit C to the
Lease) of $800,000.00 for the Connector Bridge.  To the extent the actual total
Cost of Improvements for the Connector Bridge is greater than $800,000.00, the
excess of such actual total Cost of Improvements over $800,000.00 shall
constitute the "Excess Connector Bridge Cost" and Tenant shall
pay to Landlord, as additional monthly rental for Building 2 during each
month beginning on the Phase 2 Rent Commencement Date and continuing
throughout the initial term of the Lease, an amount determined as follows:

(i)During the period from the Phase 2 Rent Commencement Date until
the first anniversary of the Phase 2 Rent Commencement Date, such
additional monthly rental shall be equal to the amount necessary and sufficient
to amortize the Excess Connector Bridge Cost on a level payment basis over the
period from the Phase 2 Rent Commencement Date until the scheduled
expiration date for the initial Term of the Lease, with an imputed return at the
rate of twelve percent (12%) per annum; and

(ii)During each subsequent one-year period from the first anniversary of
the Phase 2 Rent Commencement Date until the expiration of the initial Term
of the Lease (including, if applicable, any final period of less than one year
between such expiration date and the immediately preceding anniversary of the
Phase 2 Rent Commencement Date), such additional monthly rental shall be
equal to one hundred four percent (104%) of the additional monthly rental in
effect during the immediately preceding one-year period.

Landlord's sole rights with respect to recovering any portion of the Excess
Connector Bridge Cost shall be through the additional monthly rental payable by
Tenant hereunder and through those remedies available to Landlord under the
Lease or under applicable law for the enforcement of rental obligations in the
event of a default by Tenant under the Lease.  To the extent Landlord's
aggregate actual Cost of Improvements for the Connector Bridge has not been
finally determined as of the Phase 2 Rent Commencement Date, any rental
adjustment determined to be appropriate under this paragraph upon such final
determination shall be calculated retroactively to the Phase 2 Rent
Commencement Date and the additional rental amounts allocable to the period from
the Phase 2 Rent Commencement Date until the date of such final
determination shall be paid by Tenant to Landlord in a single lump sum within
thirty (30) days after Landlord gives Tenant written notice of such final
determination.

(f)The Tenant Improvements in Building 2 are to be constructed in a
single phase.  Thus, the provisions of Sections 3.1(e) and 5.1(a) of the
Lease and related provisions of the Workletter regarding the phasing of Tenant
Improvements in Building 2 will not be applicable.

5.Stock Warrants.  Within thirty (30) days after the execution of
this First Amendment, Tenant shall deliver to Landlord or Landlord's designees
(which may be any partners, shareholders or affiliates of Landlord or any
affiliates of any such partners, shareholders or affiliates of Landlord)
warrants registered in the name of Landlord or Landlord's designees for the
acquisition of an aggregate of one hundred five thousand (105,000) shares of
Tenant's common stock, subject to adjustment for reverse stock splits.  Such
warrants shall be in form and substance substantially identical to the warrants
issued under Section 4.1 of the Lease in connection with Building 1,
except that (i) the warrants shall be exercisable for a period beginning on
the date of this First Amendment and ending on the fifth (5th)
anniversary of the closing of the initial public offering (if any) of Tenant's
common stock, and (ii) if Tenant completes an initial public offering of
Tenant's common stock within twelve (12) months after the date of this First
Amendment, then the exercise price per share for the warrants shall be equal to
the price per share at which Tenant's initial public offering was consummated,
but if Tenant does not complete such an initial public offering within such 12-
month period, then the exercise price per share for the warrants shall be a
price consistent with the most recent arm's-length financing consummated by
Tenant at the time of execution of this First Amendment.

6.Construction.  Subject to Paragraph 4(f) above, the
respective responsibilities of Landlord and Tenant in connection with the
construction of Building 2 and the Tenant Improvements therein and with
respect to the payment of the costs of such construction shall be determined in
accordance with Article 5 of the Lease and in accordance with the
Workletter attached as Exhibit C to the Lease, except that
(i) any references in such provisions to Building 1 and/or the
Phase 1 Property shall be construed (where the context reasonably so
requires) to refer instead to Building 2 and the Phase 2 Property,
(ii) any references in such provisions to Exhibit D or the
Estimated Construction Schedule shall be construed to refer to
Exhibit D attached to this First Amendment, (iii) any
references in such provisions to Common Areas of the Property shall be construed
to refer to Common Areas of the Phase 2 Property as depicted on the Site
Plan attached to this First Amendment as Exhibit B, and
(iv) Landlord's Work relating to Building 2 shall include construction
of the Connector Bridge in accordance with the Approved Plans (provided
that, notwithstanding any other provisions of the Lease or of this First
Amendment, substantial completion of construction of the Connector Bridge or any
portion thereof shall not be considered a condition to Landlord's
issuance of the Structural Completion Certificate for Building 2, but
shall be a condition to Landlord's issuance of the Final Completion
Certificate for Building 2).  The parties expressly acknowledge that the
provisions in Paragraph 4(b) of the Workletter relating to the sharing of
costs for the Tenant Improvements (82% to Landlord and 18% to Tenant, up to a
maximum Landlord's obligation of $115.00 per square foot [equivalent to a total
Cost of Improvements of $140.24 per square foot], with any excess to be borne
entirely by Tenant, subject to any other adjustments expressly provided for in
the Workletter) shall be fully applicable to Building 2 on the same basis
as they applied to Building 1.

7.Property.  From and after the Phase 2 Rent Commencement
Date, references in the Lease to the Property shall include both the
Phase 1 Property and the Phase 2 Property, unless the context
otherwise clearly requires.  Without limiting the generality of the foregoing,
it is the parties' express intention and understanding that from and after the
Phase 2 Rent Commencement Date, Tenant shall be responsible for real and
personal property taxes relating to Building 2 and/or the Phase 2
Property to the extent provided in Article 6 of the Lease.  With respect to
Operating Expenses, however, it is Landlord's intention (consistent with the
election reserved to Landlord in Section 7.1(c) of the Lease) to treat the
Phase 2 Property as part of the Britannia Pointe Grand Business Park for
operation, maintenance, common area and Operating Expense purposes, while
operating and accounting for the Phase 1 Property separately from the
balance of the Britannia Pointe Grand Business Park for such purposes.  For
purposes of Section 7.3 of the Lease, prior to the Phase 2 Rent
Commencement Date or as soon as reasonably practicable thereafter, Landlord
shall notify Tenant in writing of Tenant's Operating Cost Share for the
Phase 2 Property (determined in accordance with Section 7.1(c) of the
Lease based on inclusion of the Phase 2 Property with the balance of the
Britannia Pointe Grand Business Park but excluding the Phase 1 Property
from such calculation) and shall revise its estimate of Operating Expenses
payable under the Lease to include amounts allocable to the Phase 2
Property, on the basis of that determination of Tenant's Operating Cost Share
and the then applicable estimated expenses for the Britannia Pointe Grand
Business Park, effective as of the Phase 2 Rent Commencement Date.  If the
Phase 2 Rent Commencement Date falls on other than the first day of a
month, Tenant's obligation for monthly payment of estimated Operating Expenses
shall be prorated accordingly, and if the Phase 2 Rent Commencement Date
falls on other than the first day of a Lease Year, the proration provisions of
Section 7.5 of the Lease shall apply.

8.Non-Disturbance Agreement.  Within thirty (30) days after
Landlord's acquisition of fee title to the Phase 2 Property, Landlord shall
deliver to Tenant a Non-Disturbance Agreement from Slough Estates USA Inc. or
any other mortgagee, trustee, beneficiary, ground lessor or leaseback lessor
then owning or holding a security interest in the Phase 2 Property, which
Non-Disturbance Agreement shall be in form and substance substantially identical
to that heretofore delivered by Landlord to Tenant with respect to the
Phase 1 Property or shall otherwise be in form and substance reasonably
acceptable to Tenant.

9.Security Deposit.  In compliance with Section 18.1 of the
Lease, on or before the Phase 2 Rent Commencement Date, Tenant shall
deliver to Landlord an amount equal to the first full month's minimum monthly
rental due with respect to Building 2, as determined under the provisions
of Paragraph 4 of this First Amendment, which amount shall be held by
Landlord as an additional Security Deposit under the Lease.

10.Brokers.  Landlord agrees to pay a brokerage commission to
Tenant's broker, Cornish & Carey Commercial, in connection with the
consummation of this First Amendment in accordance with a separate agreement.
Each party represents and warrants that no other broker participated in the
consummation of this First Amendment and agrees to indemnify, defend and hold
the other party harmless against any liability, cost or expense, including,
without limitation, reasonable attorneys' fees, arising out of any claims for
brokerage commissions or other similar compensation in connection with any
conversations, prior negotiations or other dealings by the indemnifying party
with any other broker.

11.Entire Agreement.  The Lease, as amended by this First
Amendment and the exhibits hereto, contains all the representations and the
entire understanding between the parties with respect to Building 2, the
Phase 2 Property and the other subject matter of this First Amendment.  Any
prior correspondence, memoranda or agreements are replaced in total by this
First Amendment, the exhibits hereto and the Lease as amended hereby.

12.Execution and Delivery.  This First Amendment may be executed
in one or more counterparts and by separate parties on separate counterparts,
but each such counterpart shall constitute an original and all such counterparts
together shall constitute one and the same instrument.

13.Full Force and Effect.  Except as expressly set forth herein,
the Lease has not been modified or amended and remains in full force and
effect.

[rest of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as
of the date first set forth above.

 

	
"Landlord"

BRITANNIA POINTE GRAND LIMITED PARTNERSHIP, a Delaware limited
partnership

By:BRITANNIA POINTE GRAND, LLC, a California limited liability company,
General Partner

 

By:______________________

T. J. Bristow

Its Manager, President and Chief Financial Officer

 

17035\3008\0011rv1
	 	
"Tenant"

EXELIXIS, INC., a Delaware corporation

 

By:_________________________

George A. Scangos

President and CEO

 

By:_________________________

Its:_________________________

	 	 	 

EXHIBIT A

REAL PROPERTY DESCRIPTION

 

The Phase 2 Property (being the same property previously described as
the Phase 2-B Property in the Lease) consists of all that certain real
property in the City of South San Francisco, County of San Mateo, State of
California, more particularly described as follows:

 

Parcel One (former Wilson/Calpico parcel):

BEGINNING at a point on the Easterly line of that certain 50 foot wide
roadway described in the Deed from Ed Reyburn Guerin and Grace F. Guerin, his
wife, to Ed Rosemont, dated April 16, 1948 and recorded April 21, 1948 in Book
1454 of Official Records of San Mateo County at Page 293 (27142-H), said point
of beginning being distant thereon North 00o 06' 30"
East 203 feet from the Southerly boundary of that certain 15.743 acre tract of
land described in the Deed from Metal and Thermit Corporation, a corporation, to
Grace F. Guerin, dated June 17, 1947 and recorded July 24, 1947 in Book 1352 of
Official Records of San Mateo County at Page 373 (77876-G); thence from said
point of beginning, South 00o 06' 30" West 203 feet
to the aforesaid Southerly boundary line of the 15.743 acre tract of land;
thence along said Southerly boundary line North 89o
55' 28" East 87.12 feet to the Southeasterly corner of said 15.743 acre tract;
thence Northeasterly along the Southeasterly line of said 15.743 acre tract,
North 52o 10' 30" East 258.68 feet and North 33
o 21' 30" East 52 feet; thence leaving the Southeasterly
line of said 15.743 acre tract, Westerly in a direct line 310 feet, more or
less, to the point of beginning.

APN  015-042-050

 

Parcel Two (former Kaul/Rizzetto parcel):

BEGINNING at a point on the Easterly line of that certain 50 foot wide
roadway described in the Deed from Ed Reyburn Guerin and Grace F. Guerin, his
wife, to Ed Rosemont, dated April 16, 1948 and recorded April 21, 1948 in Book
1454 of Official Records of San Mateo County at Page 293 (27142-H), said point
of beginning being distant thereon North 00o 06' 30"
East 294.00 feet from the Southerly boundary of that certain 15.743 acre tract
of land described in the Deed from Metal and Thermit Corporation, a corporation,
to Grace F. Guerin, dated June 17, 1947 and recorded July 24, 1947 in Book 1352
of Official Records of San Mateo County at Page 373 (77876-G); thence from said
point of beginning, North 89o 52' 30" East 380.00
feet, more or less, to a point on the Easterly line of said 15.743 acre tract
above referred to; thence South 33o 21' 30"
West, along the Easterly line of said 15.743 acre tract, 110.00 feet, more or
less, to the Northerly line of the lands described in the Deed from Grace F.
Guerin to Pacific Coast Builders, a co-partnership, dated October 26, 1954
and recorded October 27, 1954 in Book 2677 of Official Records of San Mateo
County at Page 73 (97326-L); thence along the last mentioned line Westerly
310.00 feet, more or less, to the Easterly line of that 50 foot wide roadway
above mentioned; thence along the last mentioned line, North 00
o 06' 30" East 91.00 feet to the point of beginning.

APN  015-042-070

EXHIBIT D

ESTIMATED CONSTRUCTION SCHEDULE

 

Estimated schedule is as follows, subject to modification and/or
supplementation by mutual agreement of the parties from time to time during the
course of the work described therein:

 
TaskDate

Indicator Program3/20/00

Drive indicators4/03/00

Drive Production4/24 - 5/12/00

P/C & G/B5/15 - 5/26/00

Pour P/C & G/B6/02/00

Structural Steel Start6/05/00

Structural Steel Complete6/23/00

Pour 2nd Floor6/28/00

Pour Roof6/30/00

Pour 1st Floor (complete)7/12/00

Exterior Framing7/17 - 9/08/00

Dryvit (EFIS)8/07 - 10/06/00

Fire Sprinklers 2nd Floor7/07 - 7/19/00

Fire Sprinklers 1st Floor7/19 - 7/28/00

Roofing7/31 - 8/11/00

Start Tenant Improvements7/24/00EX 10.1
                             MEMORANDUM OF AGREEMENT

THIS AGREEMENT MADE EFFECTIVE AND EXECUTED AS OF March 2nd 2000 (the  "Effective
Date").

BETWEEN:

                  Morenci Corp.
                  Suite 980

                  1500 West Georgia Street
                  Vancouver, BC
                  Canada
                  (the "Purchaser")

AND:

                  Kent Douglas Courtice and Robert Eire McLauchlan

                  carrying on business as esportbike.com

                  1583 W. 65TH Avenue
                  Vancouver, British Columbia
                  Canada.

                  (collectively the "Vendor")

WHEREAS:

         A. The Vendor  carries on business  comprised  of the  development  and
operation of a website relating to sports bikes and known as esportbike.com (the
"Business");

         B. The  Vendor  has  agreed  to sell and the  Purchaser  has  agreed to
purchase all the property,  assets,  and undertakings of the Business as a going
concern on the terms and conditions herein provided;

         C. Kent Douglas  Courtice and Robert Eire McLauchlan,  businessmen,  of
Vancouver,  British Columbia,  are partners of the Vendor and have a proprietary
interest in the domain name and business of the Vendor; and

         D. The Vendor owes  $113,000.00  (US) to Asset  Information  Management
Inc. ("AIM");

NOW  THEREFORE in  consideration  of the premises and the mutual  covenants  and
agreements herein contained, the parties hereto covenant and agree each with the
other as follows:

1.       PURCHASE AND SALE

1.1      Subject to the terms and conditions of this  Agreement,  at the Closing
         (hereinafter  defined) the Vendor will sell, transfer and assign to the
         Purchaser, free and clear of all liens, charges and encumbrances except
         as may be otherwise specifically provided for herein, and the Purchaser
         will purchase from the Vendor,  the Business as a going concern and all
         property and assets of the Business of every kind and  description  and
         wherever  situate  (collectively,  the  "Business  Assets"),  including
         without limiting the foregoing:

(a)      ownership of the domain name and internet entity  "esportbike.com"
         including all code names,  trade marks and copyrights thereto;

(b)      all chattels, equipment, fixtures,  furnishings,  machinery, vehicles
        and supplies used in connection with the Business as at the date hereof
        (the "Equipment");

(c)      all inventories of the Business (the "Inventory");

(d)               all right,  title,  benefit and interests under all contracts,
                  engagements   and   commitments,   whether  oral  or  written,
                  including the benefit of all unfilled  orders  received by the
                  Vendor and forward commitments to purchase made by the Vendor,
                  which the Vendor is entitled to or possessed of in  connection
                  with the Business (the "Material Contracts");

(e)               all  customer   lists,   brochures,   samples,   price  lists,
                  accounting   and  other   books  and  records  and  all  other
                  information,  correspondence,  documents and material relating
                  to the Business;

(f)               all  right,  title and  interest  of the  Vendor in and to all
                  registered and unregistered trademarks, trade and brand names,
                  copyrights,   designs,   restrictive   convenants   and  other
                  industrial or  intellectual  property  respecting the Business
                  (the "Intangible Property");

(g)              all permits, licences, consents, authorizations and approvals
                 pertaining to the Business; and

(h)               the goodwill of the Business together with the exclusive right
                  to the  Purchaser  to  represent  itself  as  carrying  on the
                  Business in  continuation  of and in  succession to the Vendor
                  and the right to the name  "esportbike.com"  or any  variation
                  thereof as part of or in  connection  with the  Business  (the
                  "Goodwill").

1.2      All  quotations  for the sale or purchase of inventory or supplies made
         or received by the Vendor and not confirmed to  contractual  commitment
         will be deemed to be  assigned  to the  Purchaser  at the Closing to be
         accepted,  confirmed  or  withdrawn  or  otherwise  acted  upon  by the
         Purchaser in its own name,  for its own account and in accordance  with
         its own business judgement.

2.       PURCHASE PRICE AND ALLOCATION

2.1      The purchase  price  payable by the  Purchaser  to the Vendor for the
         Business  Assets will be the sum of $10,000.00, payable at the Closing.

2.2      The Purchase Price will be allocated among the various items comprisin
         the Business Assets as follows:

(a)      to the domain name, the sum of $9,500.00;

(b)      to the Equipment, the sum of $250.00;

(c)      to the Goodwill, the sum of $249.00;

(d)      to the remaining Business Assets, the sum of $1.00.00.

3.       ELECTION

3.1      The  parties  hereto  agree to elect  jointly  in  accordance  with the
         provisions  of  Section  85(1)  of the  Income  Tax Act of  Canada,  in
         prescribed form and within the time stipulated inn Section 85(6) of the
         said Act, that the Vendor's  proceeds of  disposition of the Assets and
         the  Purchaser's  cost of the Assets be the sum of  $10,000.00  (herein
         called the "Elected Amount").

3.2      The parties hereby  acknowledge  that, to the best of their  knowledge,
         the Elected Amount represents the tax cost (as that term is defined inn
         the  Income  Tax Act of  Canada)  to the  Vendor  of the  Assets on the
         Effective Date. However, if at any time hereafter,  it is determined by
         the parties hereto or if it is finally  determined by the Department of
         National  Revenue,  a tribunal or Court of  competent  jurisdiction  or
         otherwise,  that the adjusted  cost base to the Vendor of the Assets on
         the  Effective  Date is greater or less than the Elected  Amount herein
         provided,  the parties will amend this Agreement and change the Elected
         Amount to ensure that the Elected  Amount is equal to the adjusted cost
         base  to the  Vendor  of the  Assets  as  determined  pursuant  to this
         paragraph.

4.       CLOSING, POSSESSION AND ADJUSTMENTS

4.1      The completion of the transactions  contemplated hereby (the "Closing")
         will  take  place at 10:00  A.m.,  local  time on March  2nd 2000  (the
         "Closing  Date") at the  offices  of the  Purchaser,  or at such  other
         place,  date and time as may be  mutually  agreed  upon by the  parties
         hereto;

4.2      The Vendor will deliver  possession  of Business  Assets,  free of any
         other claim to  possession  and any tenancies, to the Purchaser on the
         Closing Date;

4.3      All revenues and expenses,  including prepaid expenses, of the Business
         will  be  adjusted  (the  "Adjustments")  between  the  Vendor  and the
         Purchaser as at the  commencement  of business on the Closing  Date, to
         the effect that in respect of any period  before that time,  the Vendor
         will bear all expenses and receive all revenue relating to the Business
         and that from and after said time, the Purchaser will bear all expenses
         and receive all revenue relating to the Business.

5.       ASSUMPTION OF LIABILITY

5.1      It is  understood  and  agreed  that  from and after  the  Closing  the
         Purchaser  will assume and pay any and all  indebtedness  of the Vendor
         (the  "Assumed  Indebtedness")  which  the  Vendor  owes to AIM and the
         Purchaser  covenants to assume and pay the Assumed  Indebtedness and to
         indemnify and save harmless the Vendor in respect thereof.

5.2      It is  understood  and  agreed  that from and after  the  Closing,  the
         Purchaser will assume,  perform and discharge the Vendor's  obligations
         and  liabilities  in respect of any Material  Contracts and that at the
         Closing,  the Vendor and the  Purchaser  will  deliver and  Assignment,
         Assumption and Indemnity Agreement whereby:

(a)      the Vendor  confirms  the  representations  and  warranties  made
         herein  which  pertain to the  Material Contracts;

(b)      the Vendor assigns all right,  title,  benefit and interest under the
         Material Contracts to the Purchaser;
                  and

(c)               the Purchaser covenants to assume,  perform and discharge said
                  obligations and liabilities and to indemnify and save harmless
                  the Vendor in respect thereof.

5.3      Both before and after the Closing,  the Vendor and the  Purchaser  will
         make  their best  efforts to obtain the  release of the Vendor of their
         obligations  in respect of the Assumed  Indebtedness  and the  Material
         Contracts  and the Vendor and the  Purchaser  will  execute and deliver
         such  documents and  instruments  and so such acts and things as may be
         required for said purposes.

6.       REPRESENTATIONS OF THE VENDOR

6.1      The Vendor and Kent Douglas Courtice and Robert Eire McLauchlan jointly
         and severally  represent and warrant to the Purchaser,  with the intent
         that the Purchaser  will rely thereon in entering  into this  Agreement
         and in concluding the transactions contemplated hereby, that:

(a)      each of the parties  hereto has the power,  authority  and  capacity
         to carry on the Business as presently conducted and to enter into this
         Agreement and carry out its terms;

(b)               the  execution   and  delivery  of  this   Agreement  and  the
                  completion  of the  transaction  contemplated  hereby has been
                  duly and validly authorized by the necessary  corporate action
                  on the part of the Vendor  and this  Agreement  constitutes  a
                  valid and binding obligation of the Vendor enforceable against
                  the Vendor in accordance with its terms;

(c)               the  Vendor  owns and  possesses  and has good and  marketable
                  title to the  Business  Assets,  free and clear of all  liens,
                  charges and encumbrances of every kind and nature whatsoever;

(d)      the Business Assets comprise all property and assets used by the Vendor
         in connection with the Business;

(e)      there are:

(i)      no actions,  suits or  proceedings  before any court,  pending or
         threatened,  by or against or affecting  the Vendor, the Business or
         any of the Business Assets; and

(ii)                                  no      proceedings,       investigations,
                                      complaints,  order,  directives or notices
                                      of defect or  non-compliance  by or before
                                      any governmental  commission,  department,
                                      board,   authority  or  administrative  or
                                      regulatory agency, body or officer issued,
                                      pending or  threatened  against the Vendor
                                      or in  respect of the  Business  or any of
                                      the Business Assets;

7.       REPRESENTATIONS OF THE PURCHASER

7.1      The Purchaser  represents  and warrants to the Vendor as follows,  with
         the intent  that the Vendor  will rely  thereon in  entering  into this
         Agreement and in concluding the purchase and sale contemplated  hereby,
         that:

(a)               the   Purchaser  is  a  publicly   traded   corporation   duly
                  incorporated,  validly existing and in good standing under the
                  laws of the State of Nevada in the United  States of  America,
                  and has the  power,  right  and  capacity  to enter  into this
                  Agreement and to carry out its terms; and

(b)               the  execution   and  delivery  of  this   Agreement  and  the
                  completion of the  transactions  contemplated  hereby has been
                  duly and validly authorized by all necessary  corporate action
                  on the part of the Purchaser and this agreement  constitutes a
                  valid and binding  obligation  of the  Purchaser in accordance
                  with its terms.

8.       TRANSACTIONS OF THE VENDOR AT THE CLOSING

8.1      At the  Closing,  the Vendor  will  execute  and deliver or cause to be
         executed and delivered, all documents and instruments, including deeds,
         conveyances,  bills of sale,  transfers,  assignments,  agreements  and
         certificates  as are necessary to effectively  vest good and marketable
         title to the  Business  Assets in the  Purchaser  free and clear of any
         liens, charges and encumbrances.

9.       TAXES

9.1      All taxes  payable  pursuant to the Social  Services Tax Act of British
         Columbia  arising  out  of  the  purchase  of the  Business  Assets  as
         contemplated hereby will be paid by the Purchaser.

10.      TIME OF THE ESSENCE

10.1     Time is of the essence.

11.      FURTHER ASSURANCES

11.1     The parties  will execute and deliver all such  further  documents  and
         instruments  and do all such further acts and things as may be required
         to carry out the full  intent  and  meaning  of this  Agreement  and to
         effect the transactions contemplated hereby.

12.      ASSIGNMENT

12.1     This  Agreement  may not be assigned by any party hereto  without the
         prior  written  consent of the other parties hereto.

13.      ENTIRE AGREEMENT

13.1     This Agreement embodies the entire agreement and understanding  between
         the   parties   hereto   and    supercedes   all   prior    agreements,
         representations,   warranties  and  understandings,   whether  oral  or
         written, relative to the subject matter hereof.

14.      SUCCESSORS AND ASSIGNS

14.1     This  Agreement  will enure to the  benefit of and be binding  upon the
         parties hereto and their respective successors and permitted assigns.

15.      COUNTERPARTS

15.1     This Agreement may be executed in several  counterparts,  each of which
         will be  deemed  to be an  original  and  all of  which  will  together
         constitute one and the same instrument.

16.      SCHEDULES

16.1     The  schedules  attached  hereto  are  hereby  incorporated  into  this
         Agreement and form a part hereof. All terms defined in the body of this
         Agreement will have the same meaning in the Schedules attached hereto.

17.      REFERENCES TO AGREEMENT

17.1     The terms "this Agreement", "hereof", "herein", "hereby", "hereto", and
         similar terms refer to this Agreement and not to any particular clause,
         paragraph or other part of this Agreement  unless  another  document is
         specified.

18.      PROPER LAW

18.1     The proper law of this Agreement is the law of British Columbia.

         IN WITNESS  WHEREOF the parties have hereunto set their hands and seals
effective as of the Effective Date first above written.

                      SIGNATURE PAGE IMMEDIATELY FOLLOWING.

SIGNED, SEALED AND DELIVERED BY             SIGNED, SEALED AND DELIVERED BY
KENT DOUGLAS COURTICE.                      MORENCI CORP.

    /s/ Kent Courtice                      By:  /s/ M. Gregg Marshall
------------------------------              -------------------------
Signature                                     Authorized Signatory

_____Kent Courtice_____________________
Name                                        Name of Signatory: M. Gregg Marshall
                                                                    --------
   1583 West 65th Avenue, Vancouver, BC     Title of Signatory:   President
---------------------------------------
Address

SIGNED, SEALED AND DELIVERED BY
ROBERT EIRE McLAUCHLAN.

  /s/ Robert McLauchlan

Signature

______Robert McLauchlan_______________
Name

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