Document:

xoma_Ex-1061

		
			Exhibit 10.61
		

		
			LEASE TERMINATION AGREEMENT
		

		
			THIS LEASE TERMINATION AGREEMENT (this “Termination Agreement”) is made as of December 17, 2019 (the “Effective Date”), by and between 7TH STREET PROPERTIES II, a California limited partnership (“Landlord”) and XOMA CORPORATION, a Delaware corporation (“Tenant”).
		

		
			RECITALS:
		

		
			A.Landlord and Tenant are parties to that certain lease dated as of February 13, 2013 (the “Lease”) relating to approximately 35,000 rentable square feet (the “Premises”) comprising the entire building located at 804 Heinz Avenue, Berkeley, California (the “Building”), all as more particularly described in the Lease. The capitalized terms used in this Termination Agreement shall have the same definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Termination Agreement.
		

		
			B.Tenant, as sublandlord, and Memphis Meats, Inc., a Delaware corporation (“Memphis Meats”), as subtenant, are parties to that certain Sublease Agreement dated November 21, 2017, as amended by that certain First Amendment to Sublease Agreement dated December 13, 2018 (as amended, the “Memphis Meats Sublease”), pertaining to approximately 20,038 rentable square feet, described as the entire second (2nd) floor of the Premises. Landlord consented to the Memphis Meats Sublease by that certain Consent to Sublease dated December 13, 2017 and Consent to First Amendment to Sublease Agreement dated January 16, 2019 (collectively, the “Memphis Meats Consent”). The Sublease by its terms is scheduled to expire on April 30, 2023.
		

		
			C.Tenant, as sublandlord, and Newomics, Inc., a Delaware corporation (“Newomics”), as subtenant, are parties to that certain Sublease Agreement dated April 14, 2018, as amended by that certain First Amendment to Sublease Agreement dated December 13, 2018 (as amended, the “Newomics Sublease”), pertaining to approximately 6,676 rentable square feet, described as a portion of the ground floor of the Premises. Landlord consented to the Sublease by that certain Consent to Sublease dated April 27, 2018, and Consent to First Amendment to Sublease Agreement dated January 16, 2019 (collectively, the “Newomics Consent”). The Sublease by its terms is scheduled to expire on April 30, 2023.
		

		
			D.Tenant, as sublandlord, and Rodan & Fields, LLC, a Delaware limited liability company (“Rodan/Fields”), as subtenant, are parties to that certain Sublease Agreement dated January 10, 2019 (the “Rodan/Fields Sublease”), pertaining to approximately 8,286 rentable square feet, described as a portion of the ground floor of the Premises. Landlord consented to the Sublease by that certain Consent to Sublease dated January 18, 2019 (the “Rodan/Fields Consent”). The Sublease by its terms is scheduled to expire on April 30, 2023.
		

		
			

		 

			

					

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			E.The Memphis Meats Sublease, the Newomics Sublease, and the Rodan/Fields Sublease are sometimes referred to herein collectively as the “Subleases.” Memphis Meats, Newomics, and Rodan/Fields are sometimes referred to herein collectively as the “Subtenants.” The Memphis Meats Consent, Newomics Consent, and Rodan/Fields Consent are sometimes referred to herein collectively as the “Consents.”
		

		
			F.The Term is scheduled to expire on April 30, 2023 (the “Stated Expiration Date”), and Tenant desires to terminate the Lease prior to the Stated Expiration Date. Landlord has agreed to such termination on the terms and conditions contained in this Termination Agreement.
		

		
			NOW, THEREFORE, in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:
		

			
	
			
				 1.
			

			
	
			
			Effective as of the Effective Date (the “Early Termination Date”) and subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, including, without limitation, payment of the Termination Fee described in Section 9 below, the Lease is terminated and the Term of the Lease shall expire with the same force and effect as if the Term was, by the provisions thereof, fixed to expire on the Early Termination Date, provided, Tenant’s obligation to pay Monthly Base Rent and Rent Adjustments under the Lease shall be terminated effective as of September 15, 2019 (the “Rent Termination Date”). Subject to the terms and conditions of Section 5 below, effective as of the Early Termination Date, that certain letter agreement dated July 27, 2016, between Wareham Property Group (on behalf of Landlord) and XOMA (US) LLC (on behalf of Tenant) regarding the performance of certain preventative maintenance, repair and capital equipment replacement work at 804 Heinz Avenue and 2910 Seventh Street, Berkeley, California (the “Letter Agreement”) is also terminated and Wareham Property Group, XOMA (US) LLC, Landlord, and Tenant shall have no further rights, obligations, or liabilities under the Letter Agreement arising after the Early Termination Date.

			
	
			
				 2.
			

			
	
			
			On or about the Early Termination Date, Landlord shall tender an attornment letter, in substantially the form attached hereto as Exhibit A, to each of the Subtenants, pursuant to the terms and conditions of the Consents, establishing a direct contract between Landlord and each Subtenant on the terms and conditions of the applicable Sublease. Following such attornment, Landlord, as landlord, and each Subtenant, as tenant, may elect to modify or alter the legal relationship between Landlord and Subtenants. Except with respect to the Maintenance Claims as set forth in and limited by Section 5 below, Tenant hereby assigns the right to pursue any Claims (defined below) it may have against Subtenants arising from any acts or omissions of each Subtenant under the applicable Sublease to Landlord, and Landlord shall pursue such Claims solely and directly against such Subtenant, on a non-exclusive basis, such that either Landlord or Tenant may pursue such Claims against Subtenants; provided, however, Tenant agrees that it shall make commercially reasonable efforts to assist and cooperate with Landlord in the enforcement of the terms and conditions of the Subleases and Landlord shall promptly reimburse Tenant for any reasonable, actual, 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	out-of-pocket expenses reasonably approved by Landlord related thereto, following Tenant’s request for such reimbursement.

			
	
			
				 3.
			

			
	
			
			Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, Tenant remises, releases, quitclaims and surrenders to Landlord, its successors and assigns, the Lease and all of the estate and rights of Tenant in and to the Lease and the Premises effective as of the Early Termination Date. Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, Landlord accepts the surrender of the Lease and the Premises effective as of the Early Termination Date.

			
	
			
				 4.
			

			
	
			
			Effective as of the Early Termination Date, Tenant forever releases and discharges Landlord from (a) any and all claims, demands, damages, liabilities, losses or causes of action whatsoever arising prior to the Early Termination Date (collectively, “Claims”) that Tenant or its successors and assigns may have against Landlord arising out of or in connection with the Premises, the Lease, or the Letter Agreement, and (b) any obligations to be observed or performed by Landlord under the Lease or the Letter Agreement; provided, however, that any Claims related to Landlord’s covenants and obligations under this Termination Agreement or surviving indemnification obligations under the Lease are expressly excluded from the foregoing release.

			
	
			
				 5.
			

			
	
			
			Effective as of the Early Termination Date, Landlord forever releases and discharges Tenant from (a) any Claims that Landlord or its successors and assigns may have against Tenant arising out of or in connection with the Premises, the Lease, or the Letter Agreement arising on or after the Early Termination Date, and (b) any obligations to be observed and performed by Tenant under the Lease or Letter Agreement arising on or after the Early Termination Date; provided, however, that any Claims related to Tenant’s representations, covenants, and obligations under this Termination Agreement or surviving indemnification obligations under the Lease are expressly excluded from the foregoing release. With respect to any Claims related to Tenant’s maintenance, repair, and/or replacement obligations under the Lease or the Letter Agreement (“Maintenance Claims”), Landlord shall notify Tenant in writing of any such Maintenance Claim within sixty (60) days of the Early Termination Date, and if Landlord does not notify Tenant of any Maintenance Claim during such sixty (60) day period, then, notwithstanding any other provision of this Termination Agreement or the Lease to the contrary, Landlord shall have no further right to bring or make any Maintenance Claim against Tenant and all such Maintenance Claims shall thereafter be released and waived by Landlord. Except to the extent described above, the foregoing shall not amend or otherwise modify the parties’ indemnity obligations set forth in Section 11 below.

			
	
			
				 6.
			

			
	
			
			With respect to the releases set forth in Section 4 and Section 5 above, Landlord and Tenant each acknowledge that it may hereafter discover facts different from or in addition to those it now knows or believes to be true with respect to the Claims which are the subject of the releases, and each expressly agrees to assume the risk of the possible discovery of additional or different facts, and agrees that the releases shall be and remain effective in all respects, regardless of such additional or different facts.

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			Each of Landlord and Tenant hereby expressly waives and relinquishes all rights and benefits, if any, each may have under Section 1542 of the California Civil Code with respect to the Claims which are the subject of the releases above. California Civil Code Section 1542 reads as follows:
		

		
			“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
		

		
			THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVE ALL RIGHTS THEY MAY HAVE THEREUNDER, AS WELL AS ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT PERTAINING TO THE RELEASES SET FORTH HEREIN.
		

		
			/s/ RR/s/ TB
		

		
			Landlord InitialsTenant Initials
		

			
	
			
				 7.
			

			
	
			
			Subject to the agreements, representations, warranties and indemnities contained in this Termination Agreement, effective as of the Early Termination Date:

			
	
			
				 (a)
			

			
	
			
			Tenant releases any and all claims to the Security Deposit, in the amount of $146,486.89, held by Landlord pursuant to Article 5 of the Lease.

			
	
			
				 (b)
			

			
	
			
			Tenant assigns and delivers to Landlord the security deposits or letters of credit (together with any documents and fees necessary to transfer the beneficial interest in any such letter of credit to Landlord), as applicable, held by Tenant as sublandlord under each of the Memphis Meats Sublease, the Newomics Sublease and the Rodan/Fields Sublease.

			
	
			
				 (c)
			

			
	
			
			Tenant shall pay to Rodan/Fields any amounts remaining from the “Allowance” due to Rodan/Fields pursuant to Section 6 of the Rodan/Fields Sublease, if any, within five (5) business days of the Early Termination Date. In addition to the foregoing, Tenant shall pay to Memphis Meats and/or Newomics, within five (5) business days of the Early Termination Date, any amounts remaining from the “Allowance” due to such subtenant by Tenant as sublandlord in connection with either of the Memphis Meats Sublease and/or the Newomics Sublease, if any, as the case may be. Tenant agrees to indemnify and hold Landlord and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and their respective principals and members harmless from any and all claims of either Rodan/Fields, Memphis Meats and/or Newomics, as the case may be, with respect to any improvement allowance due to such Subtenant by Tenant pursuant to the applicable Sublease.

			
	
			
				 8.
			

			
	
			
			Tenant represents and warrants that (a) Tenant is the rightful owner of all of the Tenant's interest in the Lease; (b) except with respect to the Memphis Meats Sublease, the Newomics Sublease and the Rodan/Fields Sublease, Tenant has not made any disposition, 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	assignment, sublease, or conveyance of the Lease or Tenant's interest therein; (c) as of the Early Termination Date, Tenant has no knowledge of any fact or circumstance which would give rise to any claim, demand, obligation, liability, action or cause of action arising out of or in connection with Tenant's and/or Subtenants’ occupancy of the Premises, except with respect to the previous dispute between Landlord and Tenant regarding the so-called “Remedial and Deferred Work” costs which have been resolved and settled by the parties pursuant to this Termination Agreement; (d) no other person or entity has an interest in the Lease, collateral or otherwise; and (e) there are no outstanding contracts for the supply of labor or material made by Tenant, and no work has been done or is being done in, to or about the Premises, by or at the request of Tenant, which has not been fully paid for and for which appropriate waivers of mechanic's liens have not been obtained. Landlord represents and warrants to Tenant that, as of the Early Termination Date, Landlord has no knowledge of any fact or circumstance which would give rise to any claim, demand, obligation, liability, action or cause of action arising out of or in connection with Tenant's occupancy of the Premises (including related to Tenant’s repair, maintenance, and replacement obligations under the Lease or Letter Agreement), except with respect to the previous dispute between Landlord and Tenant regarding the so-called “Remedial and Deferred Work” costs which have been resolved and settled by the parties pursuant to this Termination Agreement. For purposes of the foregoing representation, Landlord’s knowledge shall be limited to the current actual knowledge of Chris Barlow, Lisa Vogel, Grant Gabbard and Seth Battaglia, at the time of execution of this Termination Agreement and not any constructive knowledge of said individuals or of Landlord, without any duty of investigation, it being understood and agreed that such individuals shall have no personal liability in any manner whatsoever hereunder or otherwise related to the matters contemplated hereby.

			
	
			
				 9.
			

			
	
			
			In consideration for Landlord’s agreement to enter into this Termination Agreement, Tenant shall pay to Landlord a “Termination Fee,” calculated as follows:

			
	
			
				 (a)
			

			
	
			
			The sum of Five Hundred Thousand Dollars ($500,000.00), defined herein as the “Base Fee”;

			
	
			
				 (b)
			

			
	
			
			The Base Fee shall be increased by any Sublease Payments (defined below) actually received by Tenant from Subtenants pursuant to the Subleases for that portion of the calendar year up to and including the Early Termination Date, which amount is currently estimated to be $618,655.42; and,

			
	
			
				 (c)
			

			
	
			
			The Base Fee shall be decreased by the Base Rent and Rent Adjustments paid by Tenant to Landlord during the period commencing as of the Rent Termination Date and ending on the Early Termination Date, which amount is currently estimated to be $747,583.38.

		
			The Termination Fee shall be paid by Tenant to Landlord within one (1) business day of the mutual execution and delivery of this Termination Agreement by cashier's or certified check or by wire transfer of immediately available funds to an account designated by Landlord. Within thirty (30) days of the Early Termination Date, the parties shall reconcile 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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any difference(s) between the estimated and actual amounts set forth in this Section 9, and pay any actual amounts due as a result of such reconciliation.
		

			
	
			
				 10.
			

			
	
			
			For purposes of this Termination Agreement, any payments of Base Rent, Monthly Base Rent and funds or sums due to Tenant under the Subleases of a nature that would be conceptually characterized as Rent, Rent Adjustments, Operating Expenses or Taxes pursuant to the Master Lease shall be defined herein as “Sublease Payments.” Tenant acknowledges and agrees that there may be an outstanding balance of Sublease Payments pertaining to unpaid Rent Adjustments due and owing by Subtenants pursuant to the Subleases for that portion of the calendar year up to and including the Early Termination Date. Tenant hereby assigns to Landlord the right to collect all such Sublease Payments from Subtenants, which Landlord shall keep for its own account upon the successful collection of any such amounts and Tenant hereby releases any claim it may have to such Sublease Payments.

			
	
			
				 11.
			

			
	
			
			Except as otherwise set forth in this Termination Agreement, all of Landlord’s and Tenant’s indemnity obligations set forth in the Lease, including, without limitation, Article 17 of the Original Lease, shall survive the termination of the Lease pursuant to this Termination Agreement.

			
	
			
				 12.
			

			
	
			
			Each signatory of this Termination Agreement represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting.

			
	
			
				 13.
			

			
	
			
			Tenant hereby represents to Landlord that, except for Cushman &Wakefield of California, Inc. (“Tenant’s Broker”), Tenant has dealt with no broker, and that no broker is entitled to any commission or compensation, in connection with this Termination Agreement. Tenant shall pay the commission due to Tenant’s Broker in connection with this Termination Agreement pursuant to a separate agreement with Tenant’s Broker. Tenant agrees to indemnify and hold Landlord and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Tenant in connection with this Termination Agreement.

			
	
			
				 14.
			

			
	
			
			Landlord hereby represents to Tenant that Landlord has dealt with no broker, and that no broker is entitled to any commission or compensation, in connection with this Termination Agreement. Landlord agrees to indemnify and hold Tenant and its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Landlord in connection with this Termination Agreement.

			
	
			
				 15.
			

			
	
			
			This Termination Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective successors, assigns and related entities.

			
	
			
				 16.
			

			
	
			
			Tenant agrees that neither Tenant nor its agents or any other parties acting on behalf of Tenant shall disclose any matters set forth in this Termination Agreement or disseminate 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	or distribute any information concerning the terms, details or conditions hereof to any person, firm or entity without obtaining the express written consent of Landlord except (a) as otherwise provided or required by applicable law or court order, and (b) to Tenant’s attorneys, financial advisors, and other consultants for the purpose of complying with the terms of this Termination Agreement.

			
	
			
				 17.
			

			
	
			
			Redress for any claim against Landlord under the Lease and this Termination Agreement shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building. The obligations of Landlord under the Lease and this Termination Agreement are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries, stockholders, employees, or agents of Landlord or the investment manager.

			
	
			
				 18.
			

			
	
			
			The obligations of Tenant under the Lease and this Termination Agreement are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its board of directors, officers, stockholders, employees, or agents of Tenant.

			
	
			
				 19.
			

			
	
			
			Landlord acknowledges that, except for the Subtenants occupying the Premises pursuant to the Subleases, Tenant has vacated the Premises as of the Early Termination Date, and Tenant shall not be required to remove any Tenant Alterations, Leasehold Improvements, or Required Removables from the Premises in connection with Tenant’s surrender of the Premises pursuant to this Termination Agreement (including but not limited to any improvements constructed or installed by or for the Subtenants). On or about the Early Termination Date, Landlord shall tender an attornment letter to each Subtenant, as provided above.

			
	
			
				 20.
			

			
	
			
			The provisions of this Termination Agreement shall be construed and enforced in accordance with the laws of the State of California. Each party hereto acknowledges that: (i) each party hereto is of equal bargaining strength; (ii) each such party has actively participated in the drafting, preparation, and negotiation of this Termination Agreement; (iii) each such party has had the opportunity to consult with such party's attorneys and advisors relative to entering into this Termination Agreement; and (iv) any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Termination Agreement, any portion hereof or any amendments hereto.

			
	
			
				 21.
			

			
	
			
			This Termination Agreement, including Exhibit A, contains all of the agreements of the parties hereto with respect to the matters contained herein, and no prior agreement, arrangement or understanding pertaining to any such matters shall be effective for any purpose. No alterations, modifications, or interpretations hereof shall be binding unless in writing and signed by the parties hereto.

			
	
			
				 22.
			

			
	
			
			In the event of any conflict between the terms, covenants, and conditions of this Termination Agreement and the terms, covenants, and conditions of the Consent, the terms, 

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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	covenants, and conditions of this Termination Agreement shall control as between Landlord and Tenant.

			
	
			
				 23.
			

			
	
			
			Each party hereto covenants to execute, with acknowledgment, verification, or affidavit, if required, any and all documents and writings, and to perform any and all other acts, that may be necessary or desirable to implement, accomplish, and/or consummate the terms of this Termination Agreement.

			
	
			
				 24.
			

			
	
			
			Every provision of this Termination Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, then such illegality or invalidity shall not affect the validity of the remainder of this Termination Agreement.

			
	
			
				 25.
			

			
	
			
			This Termination Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same Termination Agreement. For purposes of this Termination Agreement, signatures by facsimile or electronic PDF shall be binding to the same extent as original signatures.

		
			 
		

		
			[signatures on following page]
		

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			IN WITNESS WHEREOF, Landlord and Tenant have executed this Termination Agreement on the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

				
	
					
						LANDLORD:

					
					
						 

					
					
						TENANT:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7TH STREET PROPERTIES II,

					
					
						 

					
					
						XOMA CORPORATION,

				
	
					
						a California general partnership

					
					
						 

					
					
						a Delaware corporation

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						Seventh II Corporation,

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Its:

					
					
						Managing General Partner

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Richard Robbins

					
					
						 

					
					
						By:

					
					
						/s/ Tom Burns

				
	
					
						Name:

					
					
						Richard K. Robbins

					
					
						 

					
					
						Name:

					
					
						Tom Burns

				
	
					
						Title:

					
					
						President

					
					
						 

					
					
						Title:

					
					
						CFO

				
	
					
						Dated:

					
					
						12/18/2019

					
					
						 

					
					
						Dated:

					
					
						12/17/2019

				

		
			 
		

		
			 
		

		
			AGREED AND ACKNOWLEDGED:
		

		
			XOMA (US) LLC,
		

		
			a Delaware limited liability company
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Tom Burns

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Tom Burns

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						CFO

					
					
						 

					
					
						 

				
	
					
						Dated:

					
					
						12/17/2019

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			AGREED AND ACKNOWLEDGED SPECIFICALLY WITH RESPECT TO THE TERMINATION OF THE LETTER AGREEMENT: 
		

		
			WAREHAM PROPERTY GROUP, INC.,
		

		
			a California corporation
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Richard Robbins

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Richard K. Robbins

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						Manager

					
					
						 

					
					
						 

				
	
					
						Dated:

					
					
						12/18/2019

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			Exhibit A
		

		
			Form of Attornment Letter
		

		
			December ___, 2019
		

		
			Via Federal Express
		

		
			[SUBTENANT] 
[ADDRESS]
		

		
			RE:Sublease Agreement dated 
		

		
			Ladies and Gentlemen:
		

		
			Please be advised that effective as of December __, 2019, the Master Lease underlying your Sublease, by and between Landlord and Sublandlord, terminated. Pursuant to Section 8 of the Consent, Landlord has the right to require Subtenant to attorn to Landlord upon the terms and conditions of the Sublease for the remainder of the term of the Sublease. A copy of the Consent is attached hereto and incorporated herein by reference. Accordingly, please take notice that Landlord hereby exercises its option of attornment, Subtenant has agreed to attorn to Landlord as its landlord and such attornment is effective and self-operative without the execution of any further instruments, immediately upon Landlord’s exercise of such option.
		

		
			Effective as of December ___, 2019, therefore, Landlord succeeded to Sublandlord’s interest in the Sublease, and Subtenant will attorn to Landlord as sublandlord under the Sublease. The Sublease shall remain in effect as a direct sublease between Landlord and Subtenant, on all of the terms and conditions of the Sublease, including the payment of all Base Rent and Operating Expenses and Taxes and all other amounts due and owing under the Sublease, including unpaid amounts, provided that Landlord shall be deemed to be both landlord under the Master Lease and sublandlord under the Sublease.
		

		
			Please note that all rent due shall be paid directly to Landlord at the following address:
		

		
			[TO BE PROVIDED]
		

		
			Checks should be made payable to “[INSERT LANDLORD ENTITY]”.
		

		
			Landlord's address for notices under the Sublease shall be as follows:
		

		
			[INSERT ADDRESS]
		

		
			With a copy to:
		

		
			[INSERT ADDRESS]
		

		
			Please contact Ms. Lisa Vogel at (415) 457-4964 with any questions.
		

		
			 
		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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						Sincerely,

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						[LANDLORD SIGNATURE BLOCK]

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Enclosure

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						cc:

					
					
						Pamela A. Lakey, Esq.

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SSL Law Firm, LLP

					
					
						 

					
					
						 

				

		
			 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						077212\11436554v1 

					

					

						11Exhibit 4.1

 

 

Description of Securities Registered

Under Section 12 of the Exchange Act of 1934

 

The following description of our common shares,
no par value per share, is a summary and does not purport to be complete. It is subject to and qualified in its entirety by
reference to our Articles of Incorporation, Arrangement and Amendment last amended on June 12, 2015 (the “Articles”)
and our Amended By-Law No. 2 (the “Bylaws”), each of which is incorporated by reference as an exhibit to the Annual
Report on Form 10-K of which this Exhibit is a part. We encourage you to read our Articles and our Bylaws for additional information.

 

Authorized Capital

 

Our authorized share capital consists of an
unlimited number of common shares.

 

Voting Rights 

 

Holders of common shares will be entitled to
receive notice of and to attend all meetings of the shareholders. Holders of common shares are entitled to one vote per share on
all matters voted on by the shareholders, including the election of directors. Our common shares do not have cumulative voting
rights. Each director is elected by a plurality of the votes cast. However, in an uncontested election, if a nominee for director
receives a greater number of votes “withheld” from his or her election than votes “for” such election,
the nominee will be considered not to have received the support of the shareholders, even though duly elected as a matter of corporate
law. Such a nominee will be expected to provide forthwith his or her resignation to the board, effective on acceptance by the board.
Unless special circumstances apply, the board will accept the resignation. Within 90 days following the applicable meeting of the
shareholders, the board will determine whether to accept or reject the resignation offer that has been submitted. Following the
board’s decision on the resignation, the board will promptly disclose, via press release, its decision (including the reasons
for rejecting the resignation offer, if applicable).

 

Except for the election of directors, or as
otherwise required by the Articles, the Bylaws or applicable laws and regulations, all questions properly before a meeting of shareholders
will be decided by a majority of the votes cast on the question.

 

Dividend Rights and Dividend Policy

 

The holders of common shares are entitled, at
the discretion of our board of directors, to receive out of any or all of our assets properly available for the payment of dividends,
any dividend declared by the board of directors and payable by us on our common shares. Any dividend unclaimed after a period of
six years from the date on which the same has been declared to be payable shall be forfeited and shall revert to us. We and our
subsidiaries are, and may become, parties to agreements pursuant to which we borrow money, and certain covenants in these agreements
may limit our ability to pay dividends or other distributions with respect to the common shares or to repurchase common shares.

 

We have not paid any dividends since our incorporation.
At the discretion of our board of directors, we will consider paying dividends in the future as our operational circumstances may
permit, having regard to, among other things, our earnings, cash flow and financial requirements. It is the current policy of our
board of directors to retain all earnings to finance our business plan.

 

Liquidation Rights

 

The holders of common shares will participate
on a pro rata basis in any distribution of our remaining property upon our liquidation, dissolution or winding-up or any other
return of capital or distribution of our assets among our shareholders for the purpose of winding up our affairs.

 

     

     

    

 

Other Rights and Preferences

 

Our common shares have no sinking fund or redemption
provisions or preemptive, conversion or exchange rights.

 

Fully Paid Shares

 

Our outstanding common shares are, and any newly
issued common shares will be, fully paid and non-assessable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

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