Document:

EX-10.18

  Exhibit 10.18

   

   

   

   

  BOREN LABS
1930 BOREN AVENUE
SEATTLE, WASHINGTON

  LEASE AGREEMENT

  BETWEEN

  BOREN LOFTS OWNER (DE) LLC,
a Delaware limited liability company,
AS LANDLORD

  AND

  ICOSAVAX, INC.,
a Delaware corporation,
AS TENANT

   

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  TABLE OF CONTENTS

  	Page

  			
	1.
	Basic Lease Information
	1

	2.
	Lease Grant
	4

	3.
	Term and Commencement Date
	6

	4.
	Rent
	8

	5.
	Permitted Use; Compliance with Laws
	8

	6.
	Letter of Credit
	11

	7.
	Building Services
	12

	8.
	Alterations
	15

	9.
	Repairs and Maintenance
	17

	10.
	Entry by Landlord
	19

	11.
	Assignment and Subletting
	19

	12.
	Notices
	21

	13.
	Indemnity and Insurance
	22

	14.
	Casualty Damage
	24

	15.
	Condemnation
	26

	16.
	Events of Default
	26

	17.
	Limitation of Liability
	29

	18.
	Intentionally Omitted
	30

	19.
	Holding Over
	30

	20.
	Surrender of Premises
	30

	21.
	Subordination to Mortgages; Estoppel Certificate
	32

	22.
	Environmental Provisions.
	33

	23.
	Parking
	36

	24.
	Miscellaneous
	37

   

   

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  LEASE AGREEMENT

  This Lease Agreement (this “Lease”) is made and entered into as of December 15, 2021 (the “Effective Date”), by and between BOREN LOFTS OWNER (DE) LLC, a Delaware limited liability company (“Landlord”), and ICOSAVAX, INC., a Delaware corporation (“Tenant”).

  1.	Basic Lease Information.

  1.01	“Building” shall mean the building located at 1930 Boren Avenue, Seattle, Washington and commonly known as Boren Labs. The “Rentable Floor Area of the Building” is deemed to be 134,778 square feet.

  1.02	“Premises” shall mean demised space on the entirety of the ninth (9th) and tenth (10th) floors of the Building and commonly known as Suites 900 and 1000, as generally depicted in Exhibit A to this Lease.

  1.03	“Rentable Floor Area of the Premises”: 25,253 square feet.

  1.04	Intentionally Omitted.

  1.05	“Term Commencement Date”: See Section 3.01.

  1.06	“Term Expiration Date”: The last day of the sixty‐third (63rd) full calendar month following the Term Commencement Date.

  1.07	“Base Rent”:

  			
	Period
	Annual Base Rent Rate
Per Square Foot of Rentable Floor Area
	Monthly Base Rent

	Lease Year 1
	$84.00
	$176,771.00

	Lease Year 2
	$86.52
	$182,074.13

	Lease Year 3
	$89.12
	$187,536.35

	Lease Year 4
	$91.79
	$193,162.45

	Lease Year 5
	$94.54
	$198,957.32

	Lease Year 6 (months 61 – 63)
	$97.38
	$204,926.03

   

  As used above, the first “Lease Year” shall commence on the Term Commencement Date and end on the day immediately preceding the first anniversary thereof (provided that if the Term Commencement Date does not occur on the first day of a calendar month, the first Lease Year shall further include the balance of the calendar month such first anniversary occurs), and each subsequent Lease Year shall mean each successive period of twelve (12) calendar months following the first Lease Year during the initial Term, provided that the last Lease Year of the initial Term shall end on the Term Expiration Date set forth above for the initial Term.

   

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  Provided Tenant is not in Default of the terms of this Lease, after expiration of any applicable notice and cure period, Tenant shall be entitled to receive a Base Rent abatement for the first three (3) full calendar months of the Term in an aggregate amount not to exceed Five Hundred Thirty Thousand Three Hundred Thirteen Dollars ($530,313.00); the expiration of such three (3) month abatement period to be referred to herein as the “Rent Commencement Date.”. Tenant shall be obligated to pay Tenant’s Share of Expenses and Taxes attributable to such period. In the event of a Default by Tenant under the terms of this Lease that results in early termination pursuant to the provisions of Article 16 of this Lease, then as a part of the recovery set forth in Article 16 of this Lease, Landlord shall be entitled to the recovery of the Base Rent that was abated under the provisions of this Section 1.07.

  1.08	“Tenant’s Share”: 18.74%, based on the ratio that the Rentable Floor Area of the Premises bears to the Rentable Floor Area of the Building.

  1.09	“Net Lease” Tenant shall pay Tenant’s Share of all Expenses and Taxes as more particularly described in Exhibit B.

  1.10	“Tenant Work Allowance”: [***] Dollars ($[***]) per square foot of Rentable Floor Area of the Premises, as further described in the Work Letter attached hereto as Exhibit C. Tenant shall construct improvements in the Premises in accordance with the terms of Exhibit C.

  1.11	Extension Option: See Exhibit F.

  1.12	“Letter of Credit” shall mean the letter of credit in the amount of $1,060,626.00, as provided in Article 6, which amount is subject to adjustment pursuant to Article 6.

  1.13	Intentionally Omitted

  1.14	“Broker(s)”: Jones Lang LaSalle Brokerage, Inc. (“Broker”) represents Landlord and Tenant in connection with this Lease.

  1.15	“Permitted Use”: General office, research and development, laboratory and, incidental and accessory thereto, storage uses and other lawful accessory uses reasonably related to and incidental to such specified uses, all (i) consistent with comparable life sciences projects in the Seattle, Washington area, and (ii) in compliance with, and subject to, applicable laws and the terms of this Lease.

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  1.16	“Notice Address(es)”

  		
	For Landlord:
	For Tenant:

	BOREN LOFTS OWNER (DE) LLC
c/o Oxford Properties Group
125 Summer Street
Boston, Massachusetts 02110
Attention: Leasing
Email: amondani@oxfordproperties.com
	Prior to the Term Commencement Date:
Icosavax, Inc.
1616 Eastlake Ave. E.
Suite 208
Seattle, WA, 98102
Attention: Cassia Cearley, Ph.D., Chief Business Officer
Email: cassia.cearley@icosavax.com

	BOREN LOFTS OWNER (DE) LLC
c/o Oxford Properties Group
125 Summer Street
Boston, Massachusetts 02110
Attention: Legal
Email: kbinck@oxfordproperties.com
	From Temporary Space occupancy to Term Commencement Date:
Icosavax, Inc.
1930 Boren Avenue
4th floor
Seattle, WA, 98101
Attention: Cassia Cearley, Ph.D.,
Chief Business Officer
Email: cassia.cearley@icosavax.com

	 
	From and after the Term Commencement Date:
Icosavax, Inc.
1930 Boren Avenue
10th floor
Seattle, WA, 98101
Attention: Cassia Cearley, Ph.D.,
Chief Business Officer Email:_cassia.cearley@icosavax.com

  1.17	Parking: Tenant shall have the right to lease up to nineteen (19) unreserved parking passes in the subterranean parking serving the Building at the initial rate of $[***] per month per pass. Subject to availability (as determined by Landlord in Landlord’s sole discretion), Tenant shall have the right to lease additional parking passes on a month‐to‐month basis at Landlord’s then‐prevailing rate. Landlord shall have the right to, from time‐to‐time throughout the Term (i) determine in Landlord’s reasonable discretion the location of Tenant’s parking spaces in the Building in any combination and (ii) increase the then current rate per parking pass to the then prevailing market rate (as determined in Landlord’s commercially reasonable discretion).

  1.18	“Business Day(s)” are Monday through Friday of each week, exclusive of New Year’s Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day (“Holidays”). Landlord may designate 

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  additional Holidays that are commonly recognized by other research and development buildings in the area where the Building is located. “Building Service Hours” are 8:00 a.m. to 6:00 p.m. on Business Days (excluding Holidays).

  1.19	“Property” means the Building and the parcel(s) of land on which it is located and, at Landlord’s discretion, the parking facilities and other improvements, if any, serving the Building and the parcel(s) of land on which they are located.

  1.20	Other Defined Terms: Other capitalized terms shall have the meanings set forth in this Lease and its Exhibits below. References in this Lease to numbered Articles and Sections shall be deemed to refer to the numbered Articles and Sections of this Lease unless otherwise specified.

  1.21	Exhibits: The following exhibits and attachments are incorporated into and made a part of this Lease:

  Exhibit A	(Outline and Location of Premises)

  Exhibit A‐1	(Legal Description of the Property)

  Exhibit B	(Expenses and Taxes)

  Exhibit C	(Work Letter)

  Exhibit D	(Commencement Letter)

  Exhibit E	(Building Rules and Regulations)

  Exhibit F	(Additional Provisions)

  Exhibit G	(Temporary Space)

  2.	Lease Grant.

  2.01	Premises. Landlord hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord. The Premises exclude the exterior faces of exterior walls, the common stairways and stairwells, elevators and elevator wells, fan rooms, electric and telephone closets (unless such rooms and closets are located within the Premises and solely contains Tenant’s personal property), janitor closets, freight elevator vestibules, and pipes, ducts, conduits, wires and appurtenant fixtures serving other parts of the Building (exclusively or in common), and other Common Areas (as defined below) of the Building. If the Premises include the entire rentable area of any floor, the common corridors, elevator lobby, and restroom facilities located on such full floor(s) shall be considered part of the Premises.

  2.02	Appurtenant Rights. During the Term, Tenant shall have, as appurtenant to the Premises, the non‐exclusive rights to use in common (subject to reasonable rules of general applicability to tenants and other users of the Building from time to time made by Landlord of which Tenant is given notice) the common areas of the Building and the common areas of the Property, as follows: for the Building, (a) the common entrances, lobbies, elevators, stairways and accessways, if any, loading docks, ramps, drives and platforms and any passageways and serviceways thereto to the extent not exclusively serving another tenant or contained within another tenant’s premises, and the pipes, ducts, conduits, wires and appurtenant meters and equipment serving the Premises in common with others; (b) common driveways and walkways necessary for access to the Building; (c) if the Premises include less than the entire rentable floor 

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  area of any floor, the common corridors, elevator lobby, and restroom facilities located on such floor; and (d) all other areas or facilities in or about the Building from time to time designated for general use in common by Tenant, other Building tenants, and Landlord (collectively, the “Building Common Areas”), and for the Property, the parking structure and parking areas, loading and unloading areas, trash area, roadway, sidewalks, walkways, parkways, driveways, landscaped areas appurtenant to the Building, fixtures, systems, décor facilities and landscaping contained, maintained or used in connection with those areas and shall be deemed to include any city sidewalks adjacent to the Property, any pedestrian walkways system, park or other facilities located on the Property and open to the general public (collectively, the “Property Common Areas”). The Building Common Areas and Property Common Areas may be referred herein collectively as the “Common Areas.”

  2.03	Temporary Space. Subject to Force Majeure events, the original Tenant executing this Lease (“Original Tenant”) shall have the right, commencing as of May 12, 2022 and continuing until that date which is thirty (30) days after the Substantial Completion Date (“Temporary Space Term”), to lease from Landlord temporary space consisting of the entirety of the fourth (4th) floor of the Building and containing approximately 15,063 square feet (“Temporary Space”), which Temporary Space is depicted on Exhibit G attached hereto; provided, however (i) in no event shall the Temporary Space Term extend beyond December 15, 2022, and (ii) Tenant shall not be obligated to pay Base Rent for the Temporary Space upon the occurrence of the Term Commencement Date. Tenant’s lease of the Temporary Space shall be subject to all of the terms, conditions and limitations set forth in this Lease regarding the Premises except as follows:

  2.03.1	All obligations of Tenant contained in this Lease with respect to the Premises (including, without limitation, Tenant’s indemnification obligations and Tenant’s obligation to obtain and maintain insurance) shall be applicable with respect to the Temporary Space throughout the Temporary Space Term except that Base Rent for the Temporary Space shall be based on Fifty Dollars ($50.00) per rentable square foot of the Temporary Space per year (i.e., an amount equal to Sixty‐Two Thousand Seven Hundred Sixty‐Two and 50/100 Dollars ($62,762.50) per month based on 15,063 rentable square feet in the Temporary Space. Tenant shall pay for the costs of utilities and Additional Rent for the Temporary Space; provided, however, that Tenant’s Share shall be deemed to be 11.18%;

  2.03.2	Tenant agrees that Tenant shall accept the Temporary Space in its then “as‐is” condition, and that Landlord shall not be required to construct any improvements in, or contribute any improvement allowance for, the Temporary Space. Tenant further acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect the Temporary Space or its suitability for the conduct of Tenant’s business therein;

  2.03.3	Throughout the Temporary Space Term, Tenant shall be entitled to utilize nine (9) unreserved parking passes, subject to all other terms and conditions of this Lease;

  2.03.4	Tenant shall not be entitled to construct any Alterations in the Temporary Space.

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  2.03.5	Tenant shall use Tenant’s commercially reasonable efforts to cooperate with Landlord in connection with any work performed by Landlord in the Temporary Space; in no event shall Landlord’s performance of such work constitute a constructive eviction nor entitle Tenant to any abatement of Rent, provided that Landlord shall use commercially reasonable efforts to minimize interference with Tenant’s quiet use and enjoyment of the Temporary Space during the Temporary Space Term and provided that Landlord shall be responsible for and indemnify Tenant from any claims for personal injury and any damage to Tenant’s Property to the extent caused by Landlord’s gross negligence or willful misconduct while performing such work in the Temporary Space and not covered by insurance required to be maintained by Tenant under this Lease; and

  2.03.6	Tenant shall vacate and surrender the Temporary Space in the same condition as received, reasonable wear and tear excepted, on or before that date which is thirty (30) days after the Substantial Completion Date (and in any event on or before December 15, 2022) and Tenant’s failure to do so shall constitute a holdover pursuant to Article 19 of this Lease. Tenant acknowledges and agrees that such Temporary Space is subject to an expansion right provided by Landlord to an existing tenant of the Building and that Tenant’s failure to surrender the Temporary Space on or before the date that is thirty (30) days after the Substantial Completion Date (or December 15, 2022, whichever is sooner) shall cause Landlord to suffer damages (including consequential damages and loss of profits) and that Tenant shall be liable to Landlord for all such damages to the extent caused by Tenant’s holdover in the Temporary Space later than thirty (30) days after the Substantial Completion Date (or after such December 15, 2022 outside date).

  3.	Term and Commencement Date.

  3.01	Term. The “Term” of this Lease shall begin at 12:01 a.m. on the earlier to occur of the following dates under clauses .1 or .2, which date shall be the “Term Commencement Date”:

  3.01.1	the date on which Tenant substantially completes the Initial Tenant Work (“Substantial Completion Date”); or

  3.01.2	October 1, 2022, which date is subject to adjustment pursuant to Section 3.03 below.

  The Term of this Lease shall end at 11:59 p.m. on the Term Expiration Date set forth in Article 1, unless sooner terminated or extended in accordance with the provisions of this Lease. Promptly after the determination of the Term Commencement Date, Landlord and Tenant shall execute and deliver a commencement letter in the form attached as Exhibit D (the “Commencement Letter”). Tenant’s failure to execute and return the Commencement Letter, or to provide written objection to the statements contained in the Commencement Letter, within thirty (30) days after its delivery to Tenant shall be deemed an approval by Tenant of the statements contained therein.

  3.02	Initial Tenant Work. As used herein, the “Initial Tenant Work” shall mean the initial work performed by Tenant in accordance with, and subject to, the provisions of Exhibit C attached hereto. Subject to Landlord’s obligations as expressly provided in Exhibit C, the Premises 

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  shall be leased by Tenant in their current “as is” condition and configuration without any representations or warranties by Landlord.

  3.03	Delivery. Subject to Force Majeure events and delays caused by Tenant, (i) Landlord shall make possession of the ninth (9th) floor portion of the Premises available to Tenant on or before November 1, 2021 (“Anticipated Ninth (9th) Floor Delivery Date”) with Landlord’s Delivery Work substantially completed and (ii) Landlord shall make possession of the tenth (10th) floor portion of the Premises available to Tenant on March 20, 2022 (or as soon thereafter as reasonably possible) (“Anticipated Tenth (10th) Floor Delivery Date”), with Landlord’s Delivery Work pertaining to the lab upgrades described in Exhibit C‐1 substantially completed; provided, however, that Tenant acknowledges and agrees that Landlord’s remaining Delivery Work on the tenth (10th) floor will not be completed until April 15, 2022 and Tenant will use commercially reasonable efforts to not interfere with Landlord’s remaining work on the tenth (10th) floor during the period between Tenant’s Early Access (as defined below) and until Tenant’s possession of the tenth (10th) floor portion of the Premises. Landlord will use commercially reasonable efforts to not unreasonably interfere with Tenant’s work on the tenth (10th) floor Premises during Landlord’s performance of Landlord’s Delivery Work. By taking possession of the Premises, Tenant agrees that the Premises are in good order and satisfactory condition and that Landlord’s Delivery Work is substantially completed. Landlord shall not be liable for any delay or failure to deliver possession of the Premises in accordance with the dates set forth above. Any delay in the delivery of the applicable portion of the Premises shall not give rise to any liability or default by Landlord or affect any of the terms of this Lease or Tenant’s obligation to accept the Premises when delivered. Tenant’s possession of the Premises before the Term Commencement Date shall be subject to all of the terms and conditions of this Lease; provided, however, except for the cost of services used or requested by Tenant (e.g., after‐hours HVAC service), Tenant shall not be required to pay Rent for any such possession or entry before the Term Commencement Date during which Tenant, with Landlord’s approval, has entered, or is in possession of, the Premises for the sole purpose of performing improvements or installing furniture, fixtures, equipment or other personal property including without limitation the Initial Tenant Work in accordance with Exhibit C. Notwithstanding anything to the contrary contained herein, Tenant and its vendors and contractors shall have access to the tenth ( 10th) floor portion of the Premises on or before March 1, 2022, (“Early Access”) for purposes of planning and measurement, and preliminary construction of the Initial Tenant Work, and other activities reasonably necessary to prepare the tenth (10th) floor portion of the Premises for occupancy provided that during such Early Access Tenant shall use commercially reasonable efforts to cooperate with Landlord in connection with any work performed by Tenant in the tenth (10th) floor and Tenant shall use commercially reasonable efforts to minimize interference with Landlord’s work and provided that Tenant shall be responsible for and indemnify Landlord from any claims for personal injury and any damage to Landlord’s property to the extent caused by Tenant’s gross negligence or willful misconduct while performing such work during Early Access in the tenth (10th) floor portion of the Premises and not covered by insurance required to be maintained by Landlord. Notwithstanding anything to the contrary contained herein and provided Tenant is not in Default of the terms of this Lease, after expiration of any applicable notice and cure period, the October 1, 2022 date set forth in Section 3.01.2 above shall be extended by one (1) day for each day after March 20, 2022 (subject to extension due to Force Majeure events and delays caused by Tenant) that the Anticipated Tenth (10th) Floor Delivery Date (pertaining to substantial completion of the lab upgrades only) does not 

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  occur; provided further, however, that in the event of such extension, the Term Expiration Date shall be extended for each day of any such extension of such October 1, 2022 date.

  4.	Rent.

  4.01	Base Rent and Additional Rent. Subject to the abatement as provided in Section 1.07, Tenant hereby covenants and agrees to pay to Landlord, without any setoff or deduction, beginning on the Term Commencement Date, (a) all Base Rent (as provided in Article 1), (b) Tenant’s Share of Expenses and Taxes (as provided in Exhibit B attached hereto), and (c) all other Additional Rent due for the Term (collectively referred to as “Rent”). “Additional Rent” means all sums (exclusive of Base Rent) that Tenant is required to pay to Landlord from time to time under this Lease.

  4.02	Manner and Timing of Payments. Base Rent and other recurring monthly charges of Additional Rent shall be due and payable in advance on the first day of each calendar month without notice or demand, but Tenant shall pay to Landlord the Base Rent for the fourth full month of the Term at the time of Tenant’s execution and delivery of this Lease. Base Rent and Additional Rent shall together be deemed “Rent.” All other items of Rent shall be due and payable by Tenant within thirty (30) days after billing by Landlord. Rent shall be made payable to the entity, and sent to the address, that Landlord from time to time designates for such purposes and shall be paid by Tenant by good and sufficient check payable in United States of America currency or by electronic or wire transfer to an account from time to time designated by Landlord. Landlord’s acceptance of less than the entire amount of Rent shall be considered, unless otherwise specified by Landlord, a payment on account of the oldest obligation due from Tenant hereunder, notwithstanding any statement to the contrary contained on or accompanying any such payment from Tenant. Rent for any partial month during the Term shall be prorated on a per diem basis. Except as expressly set forth in this Lease, Tenant’s obligation to pay Rent shall be absolute, unconditional and independent of any Landlord covenants. Tenant shall pay and be liable for all rental, sales and use taxes (but excluding income taxes), if any, imposed upon or measured by Rent. No endorsement or statement on a check or letter accompanying payment shall be considered an accord and satisfaction.

  4.03	Net Lease. It is the purpose and intent of Landlord and Tenant that this Lease is a net lease and that all rent shall be absolutely net to Landlord so that this Lease shall yield net to Landlord the Rent to be paid each month during the Term of this Lease. Accordingly, and except as otherwise provided in this Lease, all costs, expenses and obligations of every kind or nature whatsoever relating to the Premises which may arise or become due during the Term of this Lease, including, without limitation, all costs and expenses of maintenance and repair, insurance and taxes shall be paid by Tenant, subject to the express limitations contained in this Lease. Tenant agrees that Tenant shall pay all costs, charges and expenses of every kind and nature whatsoever against or in connection with the construction and development of the Initial Tenant Work, and use and operation of the Premises that may arise or become due during the Term, including all of those that, except for the execution and delivery hereof, would or could have been payable by Landlord.

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  5.	Permitted Use; Compliance with Laws.

  5.01	Permitted Use. Tenant shall have access to the Building and Premises 24 hours per day, 7 days per week, 365 days per year, and shall use the Premises only for the Permitted Use and shall not use or permit the use of the Premises for any other purpose. Tenant shall comply with all statutes, codes, ordinances, orders, rules and regulations of any municipal or governmental entity whether in effect now or later, including without limitation, the Americans with Disabilities Act, (“ADA”), and all environmental Laws (collectively, “Law(s)”), regarding the operation of Tenant’s business and the use, condition, configuration, and occupancy of the Premises and the Building systems located in or exclusively serving the Premises; provided that Tenant shall only be responsible for ADA requirements that are specific to Tenant’s use of the Premises or that are required as a result of the Initial Tenant Work or any Alterations. In addition, Tenant shall, at its sole cost and expense, promptly comply with any Laws that relate to the Base Building (defined below), but only to the extent such obligations are triggered by Tenant’s use of the Premises or Alterations (as defined in Section 8.01) in or about the Premises performed or requested by Tenant. “Base Building” shall include the structural portions of the Building, the common restrooms, and the Building mechanical, electrical, and plumbing systems and equipment located in the internal core of the Building on the floor or floors on which the Premises are located. Tenant shall promptly provide Landlord with copies of any notices it receives regarding an alleged violation of Law. Except as otherwise provided in this Lease, Tenant shall be solely responsible, at Tenant’s sole cost and expenses, for obtaining all operational permits, licenses and approvals required in order for Tenant to use the Premises for the Permitted Use. As part of the Landlord’s performance of the Landlord’s Delivery Work, Landlord shall tie the Premises into the existing Base Building pH neutralization system (the “pH Neutralization System”), in accordance with any discharge permits required by applicable Laws (the “pH Permits”), which pH Permits shall be held in Landlord’s name, provided that, to the extent required by the State of Washington for Tenant’s specific use, Tenant shall obtain a wastewater treatment operator license from the State of Washington. The monitoring, repair and maintenance costs of the pH Neutralization System shall be passed through to Tenant on a pro‐rata basis, based upon the proportion that the Rentable Floor Area of the Premises bears to the total rentable floor area of all tenant‐occupied space tied into the pH Neutralization System; provided that any capital repairs and capital replacements shall be passed through only to the extent the same are Permitted Capital Expenses, in which event the amortized cost thereof shall be passed through to Tenant in the same manner as provided in Exhibit B. If any governmental license or permit required to be obtained by Tenant shall be required for the proper and lawful conduct of Tenant’s business at the Premises (including, without limitation, all permits and approvals required for the use and operation of the vivarium and any required wastewater treatment operator license), Tenant, at Tenant’s expense, shall duly procure and thereafter maintain such license and, on Landlord’s request, submit the same to inspection by Landlord. Tenant, at Tenant’s expense, shall at all times comply in all material respects with the terms and conditions of each such license or permit. Tenant shall, on Landlord’s request, provide Landlord with copies of all such licenses, permits and approvals required for Tenant’s use, including any permits, licenses and registrations required pursuant to environmental Laws that are obtained or renewed during the Term.

  5.02	Rules and Regulations. Tenant shall not exceed the standard density limit for the Building (one (1) person per 125 usable square feet). Tenant shall not use or permit the use of any portion of the Premises in a manner that results in objectionable noise, odors, or vibrations 

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  emanating from the Premises or any equipment installed by Tenant or any party acting under or through Tenant, or which violates or conflicts with Landlord’s sustainability standards (set forth in Section 24.21 below) or certification for the Building. Without limiting the generality of the foregoing sentence, Tenant shall not use any portion of the Premises for a personal fitness or exercise area or install or use any exercise equipment therein. Tenant shall comply with the rules and regulations of the Building attached as Exhibit E and such other reasonable rules and regulations adopted by Landlord from time to time, including rules and regulations for the performance of Alterations. If the Premises or any portion thereof are located on a multi‐tenant floor, Tenant shall cause all portions of such Premises that are visible from the Common Areas on such floors to be arranged, furnished, and lighted in a manner in which such Premises appears at all times to be occupied for the Permitted Use. Upon Landlord’s written notice to Tenant that any Negative Condition (as defined on Exhibit E) exists, Tenant shall thereafter promptly undertake actions to remedy such Negative Condition (which actions may include the installation, operation, maintenance and inspection of odor, noise, vibration, water and/or smoke control devices, and the establishment of effective control procedures to eliminate such odors, noise, vibration, smoke, or water or other objectionable emissions) within five (5) business days following receipt of such notice, or such longer period of time as is reasonably necessary to remedy such Negative Condition so long as Tenant promptly undertakes to remedy any such condition and diligently and continuously pursues such remedy to completion within forty‐five (45) days of receipt of such notice from Landlord. Tenant shall cease the activity causing the Negative Condition upon receipt of Landlord’s notice until the Negative Condition has been remedied. The means Tenant uses to prevent such migration may include but not be limited to: (i) operating the HVAC systems, including any special exhaust systems, under negative pressure, (ii) sealing all openings in the demising walls, (iii) providing continuous waterproof base (per Landlord’s criteria) along the demising walls in the showers (if any), kitchen and laboratory areas in the Premises, and (iv) placing machines or equipment in settings of cork, rubber or spring type noise and vibration eliminators. If any such Negative Condition is not so remedied, Landlord may, at its discretion either: (i) cure such Negative Condition and charge Tenant for any cost and expense incurred by Landlord therefor, and Tenant shall then pay such amount as within thirty (30) days after its receipt of an invoice thereof, or (ii) treat Tenant’s failure to remedy such Negative Condition as a Default, entitling Landlord to any of its remedies pursuant to the terms of this Lease.

  5.03	Tenant shall be allowed the exclusive use (including reasonable confidentiality and security measures) of up to its pro rata share of any control area or zone (located within the Premises), as designated by the applicable building code, for Hazardous Material and chemical use or storage. As used in the preceding sentence, Tenant’s pro rata share of any control areas or zones located within the Premises shall be determined based on the Rentable Floor Area of the Premises that Tenant leases within the applicable control area or zone. For purposes of example only, if a control area or zone contains 10,000 rentable square feet and 2,000 rentable square feet of a tenant’s premises are located within such control area or zone (while such premises as a whole contains 5,000 rentable square feet), the applicable tenant’s pro rata share of such control area would be 20%.

  5.04	Recorded Covenants. This Lease may, after the date hereof, be subject to any commercially reasonable and recorded covenants, conditions or restrictions on the Property, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time (the “CC&Rs”); provided that any such CC&Rs (a) do not materially impact Tenant’s use 

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  and enjoyment of the Premises and Common Areas (b) do not modify Tenant’s rights or obligations hereunder and (c) are commercially reasonably and generally applicable to all occupants of the Building. Subject to the foregoing, Tenant shall comply with the CC&Rs. As of the date hereof, there are no CC&Rs encumbering the Property.

  6.	Letter of Credit.

  6.01	Letter of Credit. Concurrently with Tenant’s execution and delivery of this Lease, Tenant shall deliver to Landlord a clean, irrevocable letter of credit in the amount set forth in Article 1, which shall comply with, and may be drawn by Landlord in accordance with, the provisions of this Section 6.01 (such letter of credit, together with any renewal or replacement thereof in accordance herewith, being referred to herein as the “Letter of Credit”).

  6.01.1	The Letter of Credit shall be for the amount set forth in Article 1 of this Lease, subject to the terms of Article 6 of this Lease. The Letter of Credit (i) shall be irrevocable and shall be issued by a commercial bank that has a financial condition reasonably acceptable to Landlord and has an office in San Francisco, California; Boston, Massachusetts; or New York City that accepts requests for draws on the Letter of Credit, (ii) shall require only the presentation to the issuer of a certificate of the holder of the Letter of Credit stating that Landlord is entitled to draw on the Letter of Credit pursuant to the terms of this Lease, (iii) shall be payable to Landlord or its successors in interest as the Landlord and shall be freely transferable without cost to any such successor or any lender holding a collateral assignment of Landlord’s interest in this Lease, (iv) shall be for an initial term of not less than one year and contain a provision that such term shall be automatically renewed for successive one‐year periods unless the issuer shall, at least forty five (45) days prior to the scheduled expiration date, give Landlord notice of such nonrenewal, (v) shall permit drawings to be made via facsimile transmission and (vi) shall otherwise be in form and substance reasonably acceptable to Landlord. Notwithstanding the foregoing, the term of the Letter of Credit for the final period shall be for a term ending not earlier than the date forty five (45) days after the last day of the Term. In the event that the issuer ceases to be reasonably acceptable to Landlord, due to a deterioration in its financial condition or change in status that threatens to compromise Landlord’s ability to draw on the Letter of Credit as determined in good faith by Landlord, then Tenant shall provide a replacement Letter of Credit from an issuer satisfying the terms of this Section within thirty (30) days after Landlord’s notice of such event.

  6.01.2	Landlord shall be entitled to draw upon the Letter of Credit for its full amount or any portion thereof if (a) Tenant shall fail to perform any of its obligations under this Lease after the expiration of any applicable notice and cure period, or fail to perform any of its obligations under this Lease and transmittal of a default notice or the running of any cure period is barred or tolled by applicable law, or fail to perform any of its obligations under this Lease and any applicable notice and cure period would expire after the expiration of the Letter of Credit, or (b) not less than thirty (30) days before the scheduled expiration of the Letter of Credit, Tenant has not delivered to Landlord a new Letter of Credit in accordance with this Section. Without limiting the generality of the foregoing, Landlord may, but shall not be obligated to, draw on the Letter of Credit from time to time in the event of a bankruptcy filing by or against Tenant and/or to compensate Landlord, in such order as Landlord may determine, for all or any part of any unpaid rent, any damages arising from any termination of this Lease in accordance with the terms of this Lease, any damages arising from any rejection of this Lease in a bankruptcy proceeding 

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  commenced by or against Tenant and/or any damages that Landlord reasonably estimates it will suffer as a result of any breach or default by Tenant under this Lease. Landlord may, but shall not be obligated to, apply the amount so drawn to the extent necessary to cure Tenant’s failure.

  6.01.3	After any application by Landlord of the Letter of Credit, Tenant shall reinstate the Letter of Credit to the amount originally required to be maintained under this Lease, upon demand. Provided that Tenant is not then in default under this Lease, and no condition exists or event has occurred which after the expiration of any applicable notice or cure period would constitute such a default, within forty five (45) days after the later to occur of (i) the payment of the final Rent due from Tenant or (ii) the later to occur of the Term Expiration Date or the date on which Tenant surrenders the Premises to Landlord in compliance with Article 20 of this Lease, the Letter of Credit shall be returned to the Tenant. Tenant acknowledges that the Letter of Credit is not a security deposit; instead, it is a credit enhancement in order to induce Landlord to lease the Premises to Tenant. Tenant hereby waives any and all provisions of law, now or hereafter in effect, which (i) establish the time frame by which a landlord must refund a security deposit under a lease, and/or (ii) provide that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant or to clean the premises, it being agreed that Landlord may, in addition, claim those sums specified in this Section above and/or those sums reasonably necessary to compensate Landlord for any loss or damage caused by Tenant’s default of the Lease. Tenant agrees not to interfere in any way with any payment to Landlord of the proceeds of the Letter of Credit, either prior to or following a “draw” by Landlord of all or any portion of the Letter of Credit, regardless of whether any dispute exists between Tenant and Landlord as to Landlord’s right to draw down all or any portion of the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional and thereby afford the Letter of Credit bank a justification for failing to honor a drawing upon such Letter of Credit in a timely manner. Tenant shall not request or instruct the Bank of any Letter of Credit to refrain from paying sight draft(s) drawn under such Letter of Credit.

  6.01.4	In the event of a sale of the Building or lease, conveyance or transfer of the Building, Landlord shall transfer the Letter of Credit to the transferee. Upon such transfer, Landlord shall be released by Tenant from all liability for the return of such Letter of Credit, and Tenant agrees to look to the transferee solely for the return of said Letter of Credit. The provisions hereof shall apply to every transfer or assignment made of the Letter of Credit to such a transferee. Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the Letter of Credit and that neither Landlord nor its successors or assigns shall be bound by any assignment, encumbrance, attempted assignment or attempted encumbrance.

  6.01.5	Notwithstanding anything to the contrary contained herein and provided Tenant is not in Default of the terms of this Lease, after expiration of any applicable notice and cure period, the Letter of Credit amount shall be automatically reduced as follows: (i) on the first annual anniversary of the Rent Commencement Date, the Letter of Credit amount shall be reduced to Eight Hundred Eighty‐Three Thousand Eight Hundred Fifty‐Five Dollars ($883,855.00); and (ii) on the expiration of the second (2nd) Lease Year, the Letter of Credit amount shall be reduced to Seven Hundred Seven Thousand Eighty‐Four Dollars ($707,084.00).

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  7.	Building Services.

  7.01	Building Utilities and Services. Subject to the terms and conditions of this Lease, and the obligations of Tenant as set forth herein, Landlord shall furnish or cause to be furnished to the Premises (where specified) and otherwise to the Building the following utilities and services at all times, all of which shall be included in Expenses except to the extent such utilities or services are separately metered to the Premises: (a) electricity in accordance with the terms and conditions in Section 7.02; (b) customary heating, air conditioning and ventilation in the Premises for normal lab and office use on a 24/7 basis; (c) standard janitorial service for the Common Area on Business Days, including trash removal in all parking areas (it being acknowledged and agreed that Tenant shall be solely responsible for all cleaning and janitorial services for the Premises); (d) water for drinking and lavatory purposes and sewer services to the Premises, all as reasonably required for the Permitted Use on a 24/7 basis, (e) elevator service within the Building for Tenant’s non‐exclusive use on a 24/7 basis, (f); (g) access to the Building for Tenant and its employees on a 24/7 basis, subject to the terms of this Lease; and (h) such security or protective services in the Building and parking areas or other monitoring systems, if any, as Landlord may from time to time impose, including, without limitation, sign‐in procedures and/or presentation of identification cards (provided however, Landlord shall not be liable for losses due to theft, vandalism or similar causes except to the extent caused by Landlord’s gross negligence or willful misconduct); and (i) such other services as Landlord reasonably determines are necessary or appropriate for the Property. Tenant shall, subject to all of the terms and conditions of Article 8 hereof, have the right, at Tenant’s sole expense to install and maintain a security system within the Premises (“Tenant’s Security”), and if installed, Tenant shall be solely responsible for the monitoring and operation of Tenant’s Security system. If, at Tenant’s request, Landlord, or an affiliated or third party service provider, provides any services that are not Landlord’s express obligation under this Lease, including, without limitation, any repairs which are Tenant’s responsibility pursuant to Article 9 below, Tenant shall pay to the applicable service provider the cost of such services plus a reasonable administrative charge.

  7.02	Tenant Electricity. Tenant shall pay to Landlord, as Additional Rent, the costs of electricity used in or for the Premises (including, without limitation, air handling units or other HVAC equipment serving the Premises) and, if applicable, for any special equipment installed by or for Tenant elsewhere in the Building, by a separate charge payable by Tenant to Landlord based on check‐meters installed for the Premises (or for any applicable portion thereof or equipment serving the Premises) or, for any portion of the Premises or equipment that from time to time does not have operational check‐meters, based on reasonable allocations prepared by Landlord’s building engineer for the space and period in question. Tenant shall make estimated monthly payments for the electricity charges hereunder, in advance on the first day of each month or partial month of the Term, based on amounts estimated by Landlord from time to time for such electricity charges, subject to periodic reconciliations based on actual check‐meter readings and utility rates for the space and period in question. Notwithstanding anything above to the contrary, Landlord shall have the right, in Landlord’s sole discretion, to include the costs to provide electricity as part of Expenses and, in such event, Tenant shall pay Tenant’s Share of the same. Without the consent of Landlord, Tenant’s use of electrical service shall not exceed 300 Amps of 480/277 kW. Landlord shall have the right to measure electrical usage by commonly accepted methods, including the installation of measuring devices such as submeters and check‐meters, which to the extent not in place prior to the Effective Date shall be installed at Landlord’s sole cost and expense. 

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  If it is determined, for any electrical service that is not separately check‐metered to Tenant, that Tenant is using electricity in such quantities or during such periods as to cause the total cost of Tenant’s electrical usage, on a monthly, per‐rentable‐square‐foot basis, to materially exceed that which Landlord reasonably deems to be standard for the Building, Tenant shall pay Landlord Additional Rent for the cost of such excess electrical usage. Notwithstanding the foregoing, to the extent any electricity service is from time to time metered directly by the utility company to the Premises, Tenant shall timely pay the separate charges for such electricity service directly to the applicable utility company and, if requested by Landlord from time to time, provide copies of such utility company invoices and evidence of such payments.

  7.03	Interruption of Services. Landlord’s failure to furnish, or any interruption, diminishment or termination of services due to the application of Laws, the failure of any equipment, the performance of maintenance, repairs, improvements or alterations, utility interruptions or the occurrence of an event of Force Majeure (defined in Section 24.06) or any other causes (collectively a “Service Failure”) shall not render Landlord liable to Tenant, constitute a constructive eviction of Tenant, give rise to an abatement of Rent, nor relieve Tenant from the obligation to fulfill any covenant or agreement except as provided in the next sentence. If the Premises, or a material portion of the Premises, are made untenantable for a period in excess of five (5) consecutive Business Days as a result of a Service Failure that is reasonably within the control of Landlord to correct and was not caused by Tenant or any Tenant Related Parties (as defined in Section 13.01) or any of Tenant’s transferees, contractors or licensees, then Tenant, as its sole remedy, shall be entitled to receive an abatement of Rent payable hereunder during the period commencing on the first day following such five (5)‐Business‐Day period and ending on the day the service has been restored. If the entire Premises has not been rendered untenantable by the Service Failure, the amount of abatement shall be equitably prorated. This Section shall not apply to any Service Failure arising from a casualty event governed by Article 14 below.

  7.04	Reservations. Landlord reserves the right from time to time to do any of the following: (a) expand the Building and construct or alter other buildings or improvements on the Property as long as Tenant’s parking ratio (i.e., .75 spaces per 1,000 rentable square feet of the Premises) is not materially and adversely affected; (b) make any changes, additions, improvements, maintenance, repairs or replacements in or to the Building, Common Areas of the Property (including the Premises if required to do so by any applicable laws to the extent reasonably necessary in connection with any improvements to the Building, Common Areas and/or the Property, provided that Tenant’s use of the Premises is not materially and adversely affected), and the fixtures and equipment thereof, including, without limitation: (i) maintenance, replacement and relocation of pipes, ducts, conduits, wires and meters and equipment above the ceiling surfaces, below the floor surfaces and within the walls of the Building and Premises, and (ii) changes in the location, size, shape and number of driveways, entrances, stairways, elevators loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways, easements, parking spaces and parking areas as long as Tenant’s use of the Premises is not materially and adversely affected and Tenant’s parking ratio is not materially and adversely impacted (c) close temporarily any of the Property while engaged in making repairs, improvements or alterations to the Property; and (d) perform such other acts and make such other changes with respect to the Property, as Landlord, may, in its good faith business judgment, determine is appropriate provided that Tenant’s use of the Premises is not materially and adversely affected by such acts or other changes. Landlord will provide Tenant with at least fifteen (15) days’ prior 

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  notice of any of the actions set forth in this Section 7.04, to be taken by Landlord if such action will interfere with (i) Tenant’s ability to conduct business within the Premises, (ii) gain access to and from the Premises, or (iii) use or have access to and egress from the parking area serving the Building. Landlord shall use commercially reasonable efforts to ensure that the performance of any such work of repairs or alterations shall not interfere with Tenant’s use of the Premises and such efforts may include limiting the performance of any such work which might be disruptive to weekends or the evening. Without limiting the generality of the foregoing, Landlord reserves the right from time to time to modify components of the access procedures for the Building or other portions of the Property, to change the number of lobby attendants, or to institute, modify, supplement, or discontinue any particular access control procedures or equipment for the Building, whether during or after business hours. Landlord does not warrant or guarantee the effectiveness of any such system or procedures. Tenant expressly disclaims any such warranty, guarantee, or undertaking by Landlord with respect thereto and acknowledges that access control procedures from time to time in effect are solely for the convenience of tenants generally and are not intended to secure the Premises or to guarantee the physical safety of any persons in or about the Premises or the Property. Tenant shall be responsible for securing the Premises, including without limitation by Tenant’s installation of access card readers or other security equipment for the Premises in accordance with Exhibit C and Article 8 and by restricting or monitoring access into and from the Premises by its employees or other invitees. At the time that any Tenant employee (or other person acting under or through Tenant) who has been issued a Building access card is terminated or otherwise ceases to work at the Premises, Tenant shall retrieve and destroy the Building access card for such person and, in accordance with the Building’s standard procedures, notify the Building’s property manager that such person should be removed from the active list for Building access cards.

  7.05	Energy Statements. For any utilities serving the Premises for which Tenant is billed directly by such utility provider, Tenant agrees to furnish to Landlord (a) any invoices or statements for such utilities within thirty (30) days after Tenant’s receipt thereof, (b) within thirty (30) days after Landlord’s request. Tenant acknowledges that any utility information for the Premises may be shared with third parties, including Landlord’s consultants and governmental authorities provided that prior to providing such utility information, Landlord shall use good faith efforts to redact any reference to Tenant to the extent such redaction is allowed under applicable Laws.

  8.	Alterations.

  8.01	Alterations. Tenant shall not make alterations, repairs, additions or improvements or install any Cable (collectively referred to as “Alterations”) in the Premises, without first obtaining the written consent of Landlord in each instance, “Cable” shall mean and refer to any electronic, fiber, phone and data cabling and related equipment that is installed by or for Tenant or any party acting under or through Tenant. Prior to starting work on any Alterations, Tenant shall furnish Landlord with plans and specifications (which shall be in CAD format if requested by Landlord); names of contractors acceptable to Landlord (provided that Landlord may designate specific contractors with respect to Base Building and vertical Cable, as may be described more fully below, and provided further that Landlord may require any contractor or subcontractor performing work on or about the Premises or Building be harmonious with union labor); required permits and approvals; evidence of contractor’s and subcontractor’s insurance in amounts 

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  reasonably required by Landlord and naming as additional insureds the Landlord, the managing agent for the Building, and such other Additional Insured Parties (as defined in Article 13) as Landlord may designate for such purposes; and any security for performance in amounts reasonably required by Landlord. Landlord may designate specific contractors with respect to oversight, installation, repair, connection to, and removal of vertical Cable. All Cable shall be clearly marked with adhesive plastic labels (or plastic tags attached to such Cable with wire) to show Tenant’s name, suite number, and the purpose of such Cable (i) every 6 feet outside the Premises (specifically including, but not limited to, the electrical room risers and any Common Areas), and (ii) at the termination point(s) of such Cable. Changes to the plans and specifications must also be submitted to Landlord for its approval. Alterations shall be constructed in a good and workmanlike manner. Tenant shall ensure that no Alteration adversely affects any Building system or Landlord’s ability to perform its obligations hereunder. Tenant shall reimburse Landlord for any third‐party expenses incurred by Landlord in connection with the review, inspection, and coordination of Tenant’s plans for Alterations and Tenant’s performance thereof in an amount not to exceed 2% of the hard costs of the Alterations provided, however, this reimbursement obligation shall not apply to the Initial Tenant Work. Upon completion, Tenant shall furnish “as‐built” plans (in CAD format, if requested by Landlord) for non‐Cosmetic Alterations, customary AIA completion affidavits, full and final waivers of lien (and, to the extent applicable, cause a timely Notice of Completion to be recorded in the office of the Recorder of King County in accordance with the terms of Washington Law), any applicable certificate of occupancy for the space affected by such Alterations and other applicable municipal or local sign‐offs and inspection reports, and any other items reasonably required by Landlord for closing out the particular work in question. Landlord’s approval of an Alteration shall not be deemed to be a representation by Landlord that the Alteration complies with Law or will not adversely affect any Building system. If any Alteration requires any change to the Base Building, any Building system or any Common Area, then such changes shall be made at Tenant’s sole cost and expense and performed, at Landlord’s election, either by Tenant’s contractor or a contractor engaged by Landlord. Notwithstanding the foregoing, Landlord’s consent shall not be required for any Alteration that satisfies all of the following criteria (a “Cosmetic Alteration”) and of which Landlord is given prior notice: (a) is of a cosmetic nature such as painting, wallpapering, hanging pictures and installing carpeting; (b) is not visible from the exterior of the tenth (10th) floor portion of the Premises; (c) will not affect the Base Building (defined in Article 5); (d) does not require work to be performed inside the exterior walls or above the ceiling of the Premises; (e) cost less than $[***] for a particular job; and (f) does not require a building permit. Cosmetic Alterations shall be subject to all the other provisions of this Article 8, to the extent applicable thereto.

  8.02	Liens. Tenant shall not cause or permit any mechanics’ or other liens or encumbrances to be placed upon the Property, the Premises, or Tenant’s leasehold interest hereunder, whether in connection with any work or service done or purportedly done by or for the benefit of Tenant, its subtenants, or any other party acting under or through Tenant, or otherwise. Tenant shall give Landlord notice at least thirty (30) days prior to the commencement of any work in the Premises to afford Landlord the opportunity to post and record notices of non‐responsibility. Tenant, within twenty (20) days after notice from Landlord, shall fully discharge any such lien by settlement, by bonding or by insuring over the lien in the manner prescribed by the applicable lien Law. If Tenant fails to timely discharge such lien within such period, Tenant shall be deemed in Default under this Lease and, in addition to any other remedies available to Landlord as a result of such Default by Tenant, Landlord, at its option, may bond, insure over or otherwise discharge the 

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  lien. Tenant shall reimburse Landlord for any amount paid by Landlord to discharge such lien, including, without limitation, reasonable attorneys’ fees. Landlord shall have the right to require Tenant to post a performance or payment bond in connection with any work or service done or purportedly done by or for the benefit of Tenant. Tenant acknowledges and agrees that all such work or service is being performed for the sole benefit of Tenant and not for the benefit of Landlord.

  8.03	Leasehold Improvements. All Leasehold Improvements shall, except as expressly provided in this Lease, remain upon the Premises at the end of the Term without compensation to Tenant. “Leasehold Improvements” shall mean and include all Initial Tenant Work and other leasehold improvements from time to time existing in or to the Premises, including without limitation any such leasehold improvements (if any) that exist as of the applicable delivery date or Term Commencement Date under this Lease or that are made by or for the benefit of Tenant (or any party acting under or through Tenant) before the Term Commencement Date or thereafter from time to time during the Term. Leasehold Improvements shall expressly exclude Tenant’s Property which shall remain the property of Tenant unless otherwise expressly agreed to by Landlord and Tenant in writing. Landlord, by written notice to Tenant at least thirty (30) days prior to the Term Expiration Date, may require Tenant, at Tenant’s expense, to remove any Initial Tenant Work or other Leasehold Improvements or other affixed installations that, in Landlord’s reasonable judgment, are of a nature that would require removal and repair costs that are materially in excess of the removal and repair costs associated with standard improvements for the Permitted Use (“Required Removables”). Required Removables shall include, without limitation, internal stairways, raised floors, private baths and showers, vaults, rolling file systems, structural alterations and modifications and any Cable installed by or on behalf of Tenant. Tenant, at the time it requests approval for a proposed Alteration, including any Initial Tenant Work, as such terms may be defined in the Work Letter attached as Exhibit C, may request in writing that Landlord advise Tenant whether the Alteration, including any Initial Tenant Work, or any portion thereof, is a Required Removable. Within ten (10) Business Days after receipt of Tenant’s request, Landlord shall advise Tenant in writing as to which portions of the Alteration or other Leasehold Improvements are Required Removables. The Required Removables shall be removed by Tenant before the expiration or earlier termination of this Lease in accordance with Article 20.

  8.04	Signage. No sign, advertisement or notice shall be exhibited, painted or affixed by Tenant at the Premises in a manner visible from the exterior of the Premises except as required to identify Tenant as the tenant of the Premises and in compliance with applicable Laws. The design and installation of any such signage shall be subject to Landlord’s reasonable approval. For any signage, Tenant shall, at Tenant’s own cost and expense, (a) acquire all permits for such signage in compliance with applicable Laws and (b) design, fabricate, install and maintain such signage in a first‐class condition. Tenant shall remove all signage identifying Tenant or anyone claiming by, through, or under Tenant prior to the expiration of the Term.

  9.	Repairs and Maintenance.

  9.01	Tenant Obligations. Tenant shall periodically inspect the Premises to identify any conditions that are dangerous or in need of maintenance or repair. Tenant shall promptly provide Landlord with notice of any such conditions. Tenant, at its sole cost and expense, shall perform all maintenance and repairs to the Premises that are not Landlord’s express responsibility under this 

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  Lease, and keep the Premises in good condition and repair, reasonable wear and tear excepted. Tenant’s repair and maintenance obligations include, without limitation, repairs to: (a) floor covering; (b) interior partitions; (c) doors; (d) the interior side of demising walls; (e) Leasehold Improvements and Alterations; (f) any and all elements of the heating, ventilation and air conditioning system and equipment (including any supplemental HVAC units) that exclusively serves the Premises (“Tenant’s HVAC”), (g) kitchens, including hot water heaters, plumbing, and similar facilities exclusively serving the Premises or any portion thereof, whether such items are installed by Tenant or are currently existing in the Premises; and (h) any Cable. Tenant shall maintain in effect throughout the Term maintenance/service contracts for Tenant’s HVAC or other specialty equipment exclusively serving the Premises and, from time to time upon Landlord’s request, provide Landlord with a copy of such maintenance contract and reasonable evidence of its service record. All maintenance/service contracts for Tenant’s HVAC shall include all services recommended by the equipment manufacturer within the operation and maintenance manual and shall become effective within thirty (30) days after the date Tenant takes possession of the Premises. If Tenant fails to maintain any such maintenance/service contracts, Landlord shall have the right but not the obligation, upon notice to Tenant, to procure and maintain any such maintenance/service contracts, and Tenant shall reimburse Landlord, as Additional Rent, within twenty (20) days after written demand, for the costs therefor. All material and non‐routine repairs and related work performed by Tenant or its contractors, including that involving Cable, shall be subject to the terms of Section 8.01 above. If Tenant fails to make any repairs to the Premises for more than fifteen (15) days after notice from Landlord (although notice shall not be required in an emergency), Landlord may (but shall not be required to do so) make the repairs, and, within thirty (30) days after demand, Tenant shall pay to Landlord the reasonable cost of the repairs, together with an administrative charge in an amount equal to five percent (5%) of the hard cost of the repairs. Tenant shall be responsible, at its sole cost and expense, for providing cleaning and janitorial services to the Premises in a neat and first‐class manner consistent with the cleaning standards generally prevailing in comparable buildings in the Seattle area for laboratory and office space or as otherwise reasonably established by Landlord in writing from time to time, using an insured contractor or contractors selected by Tenant and reasonably approved in writing by Landlord and such provider shall not interfere with the use and operation of the Building or Property by Landlord or any other tenant or occupant thereof. Tenant shall also be responsible to arrange for, at Tenant’s sole cost and expense, any waste (including biomedical, hazardous and laboratory waste) and refuse removal services for Tenant’s operations at the Premises. All waste (including biomedical, hazardous and laboratory waste) and refuse removal shall be performed in compliance with applicable environmental Laws using licensed laboratory waste disposal companies. All biomedical, hazardous and laboratory waste and refuse shall be stored in the Premises and shall be removed in compliance with applicable environmental Laws. Tenant shall also cause all extermination of vermin in the Premises or resulting from Tenant’s use of the Premises to be performed by companies reasonably approved by Landlord in writing and shall contract and use pest extermination services as reasonably necessary or as reasonably requested by Landlord. Tenant hereby waives and releases its right to make repairs at Landlord’s expense under any law, statute, or ordinance now or hereafter in effect.

  9.02	Landlord Obligations. Landlord shall keep and maintain in good repair and working order and perform maintenance upon (a) the structural elements of the Building; (b) the mechanical (including HVAC), electrical, plumbing and fire/life safety systems serving the Building in general; (c) the Common Areas; (d) the roof of the Building; (e) the exterior windows 

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  of the Building; and (f) the elevators serving the Building. Subject to reasonable wear and tear, and damage by Casualty, or taking by eminent domain (which shall instead be governed by Articles 14 and 15 below), Landlord shall from time to time make repairs for which Landlord is responsible hereunder.

  10.	Entry by Landlord.

  Landlord may enter the Premises to inspect, show or clean the Premises or to perform or facilitate the performance of repairs, alterations or additions to the Premises or any portion of the Building. Except in emergencies or to provide Building services, Landlord shall provide Tenant with reasonable prior notice of entry of not less than twenty‐four (24) hours (which such notice may be verbal or by email). In connection with any such entry for non‐emergency work performed during Building Service Hours, Landlord shall use reasonable efforts, consistent with the operation of a first‐class life sciences building, not to unreasonably interfere with Tenant’s use of the Premises. If reasonably necessary, Landlord may temporarily close all or a portion of the Premises to perform repairs, alterations and additions. Landlord shall not close the Premises during Building Service Hours if the work can reasonably be performed on weekends and/or after Building Service Hours. Tenant shall at all times, except in the case of emergencies, have the right to escort Landlord or its agents, representatives, contractors or guests while the same are in the Premises, provided such escort does not materially and adversely affect Landlord’s access rights hereunder. Landlord agrees to comply with any commercially reasonable confidentiality, security, and safety measures that Tenant may elect to prescribe during Landlord’s entry to the Premises. Any such entry by Landlord shall not constitute a constructive eviction or entitle Tenant to an abatement or reduction of Rent.

  11.	Assignment and Subletting.

  11.01	Transfers. Except in connection with a Permitted Transfer (defined in Section 11.04), Tenant shall not assign, sublease, transfer or encumber any interest in this Lease or allow any third party to use all or any portion of the Premises (in each such case, collectively or individually, a “Transfer” to a “Transferee”) without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed if Landlord does not exercise its recapture rights under Section 11.02. Without limitation, it is agreed that Landlord’s consent shall not be considered unreasonably withheld if the proposed Transferee (a) is a governmental entity, (b) is an occupant of the Building, (c) whether or not an occupant of the Building, has been in discussions with Landlord regarding the leasing of space within the Building within the preceding six (6) months, (d) is incompatible with the character of occupancy of the Building, (e) is an entity with which the payment for the sublease or assignment is determined in whole or in part based upon its net income or profits, or (f) would subject the Premises to a use which would: (i) involve increased personnel or wear upon the Building; (ii) violate any exclusive right granted to another tenant of the Building; (iii) require any addition to or modification of the Premises or the Building in order to comply with building code or other governmental requirements; or (iv) involve a violation of the Permitted Use clauses of this Lease. Subject to Section 11.04 below, if the entity(ies) that directly or indirectly controls the voting shares/rights of Tenant (other than through the ownership of voting securities listed on a recognized securities exchange) changes at any time, such change of ownership or control shall constitute a Transfer. Any Transfer in violation of this Section shall, at Landlord’s option, be deemed a Default by 

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  Tenant as described in Section 16.01, and shall be voidable by Landlord. In no event shall any Transfer, including a Permitted Transfer, release or relieve Tenant from any obligation under this Lease, and the Tenant originally named in this Lease shall remain primarily liable for the performance of the tenant’s obligations under this Lease, as amended from time to time.

  11.02	Process. Tenant shall provide Landlord with financial statements for the proposed Transferee (or, in the case of a change of ownership or control, for the proposed new controlling entity(ies)), a copy of the final form of the proposed assignment, sublease, or other Transfer documentation, and such other information as Landlord may reasonably request. Within fifteen (15) Business Days after receipt of the required information and documentation, Landlord shall either: (a) consent to the Transfer by execution of a consent agreement in a form reasonably designated by Landlord; (b) reasonably refuse to consent to the Transfer in writing; or (c) in the event of a proposed assignment of this Lease or subletting for space in the Premises that is between twenty‐five percent (25%) and forty‐five percent (45%) of the Premises (in each case to anyone other than Affiliate), recapture the Premises or, in the case of a subletting, recapture the portion of the Premises that Tenant is proposing to Transfer for the term of such sublease. If Landlord exercises its right to recapture by written notice to Tenant (the “Recapture Notice”), this Lease shall automatically be amended (or terminated if the entire Premises is being assigned or more than forty‐five percent (45%) of the Premises is sublet) to delete the applicable portion of the Premises effective on the proposed effective date of the Transfer, although Landlord may require Tenant to execute a reasonable amendment or other document reflecting such reduction or termination; provided, however, that Tenant may, within ten (10) days of receiving the Recapture Notice, rescind its request for Transfer and Landlord’s recapture right shall also be automatically rescinded. Tenant shall pay to Landlord the reasonable costs and attorneys’ fees incurred by Landlord in connection with such requested Transfer provided, in no event, shall such costs exceed [***] Dollars ($[***]).

  11.03	Excess Payments. In the event, if any, that (i) all rent and other consideration which Tenant receives as a result of a Transfer exceeds (ii) the Rent payable to Landlord for the portion of the Premises and Term covered by the Transfer, then Tenant shall, at Landlord’s election, pay to Landlord an amount equal to fifty percent (50%) of such excess, from time to time on a monthly basis upon Tenant’s receipt of such excess; provided that in determining any such excess, Tenant may deduct from the excess all reasonable and customary expenses directly incurred by Tenant in connection with such Transfer, except that any construction costs incurred by Tenant in connection with such Transfer (e.g., any demising costs associated with the subleasing of a portion of the Premises) shall be deducted on a straight‐line basis over the term of the applicable Transfer. If Tenant is in Default, Landlord may require that all sublease payments be made directly to Landlord, in which case Tenant shall receive a credit against Rent in the amount of Tenant’s share of payments received by Landlord. Notwithstanding anything to the contrary contained herein, Sections 11.02 and 11.03 shall not apply to a Permitted Transfer.

  11.04	Permitted Transfers. Tenant may assign this Lease to a successor to Tenant by merger, consolidation, or the purchase of all or substantially all of Tenant’s assets, or assign this Lease or sublet all or a portion of the Premises to an Affiliate (defined below), without the consent of Landlord, provided that all of the following conditions are satisfied (a “Permitted Transfer”): (a) Tenant must not be in Default; (b) Tenant must give Landlord written notice at least fifteen (15) days before such Transfer; and (c) except in the case of a sublease to an Affiliate, the Credit 

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  Requirement (defined below) must be satisfied. Tenant’s notice to Landlord shall include information and documentation evidencing that any Transfer qualifies as a Permitted Transfer hereunder and that each of the above conditions has been satisfied. If requested by Landlord, Tenant’s successor shall sign and deliver to Landlord a commercially reasonable form of assumption agreement. “Affiliate” shall mean an entity controlled by, controlling or under common control with Tenant. The original Tenant executing this Lease may be referred to herein as the “Original Tenant.” An Affiliate that is an assignee of Original Tenant’s entire interest in this Lease may be referred to herein as an “Affiliate Assignee.” The “Credit Requirement” shall be deemed satisfied if, as of the date immediately preceding the date of the Permitted Transfer, the financial strength of either (i) the entity with which Tenant is to merge or consolidate or to which the Lease is otherwise to be assigned or (ii) the purchaser of all or substantially all of the assets of Tenant, as applicable, is not less than that of Tenant, as determined (x) based on credit ratings of such entity and Tenant by both Moody’s and Standard & Poor’s (or by either such agency alone, if applicable ratings by the other agency do not exist), or (y) if such credit ratings do not exist, then in accordance with certified financial statements for such entity and Tenant covering their last two fiscal years ending before the Transfer. If, at any time after a Permitted Transfer, the Affiliate to which the Permitted Transfer is made ceases to qualify as an Affiliate of the original Tenant, such event shall be deemed a Transfer that is subject to the provisions of Sections 11.01, 11.02, and 11.03 above.

  11.05	Prohibited Matters. Without limiting Landlord’s right to withhold its consent to any Transfer by Tenant, unless Landlord shall have consented to any Transfer, neither Tenant nor any other person having an interest in the possession, use or occupancy of the Premises or any part thereof shall enter into any lease, sublease, license, concession, assignment or other transfer or agreement for possession, use or occupancy of all or any portion of the Premises which provides for rent or other payment for such use, occupancy or utilization based, in whole or in part, on the net income or profits derived by any person or entity from the space so leased, used or occupied, and any such purported lease, sublease, license, concession, assignment or other transfer or agreement shall be absolutely void and ineffective as a conveyance of any right or interest in the possession, use or occupancy of all or any part of the Premises.

  12.	Notices.

  All demands, approvals, consents or notices (collectively referred to as a “notice”) shall be in writing and delivered by hand, sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service, sent by overnight or same day courier service, or by email provided that notices sent by email must also be sent pursuant to any one of the other methods in this sentence, in all cases at the party’s respective Notice Address(es) set forth in Section 1.16; provided, however, notices sent by Landlord regarding general Building operational matters may be posted in the Building mailroom or the general Building newsletter or sent via e‐mail to the e‐mail address provided by Tenant to Landlord for such purpose. In addition, if the Building is closed (whether due to emergency, governmental order or any other reason), then any notice address at the Building shall not be deemed a required notice address during such closure, and, unless Tenant has provided an alternative valid notice address to Landlord for use during such closure, any notices sent during such closure may be sent via e‐mail or in any other practical manner reasonably designed to ensure receipt by the intended recipient. Each notice shall be deemed to have been received on the earlier to occur of actual 

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  delivery or the date on which delivery is refused (in the case of email, when confirmed sent with read receipt requested), or, if Tenant has vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address, three (3) Business Days after notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address (other than to a post office box address) by giving the other party written notice of the new address.

  13.	Indemnity and Insurance.

  13.01	Indemnification. Except to the extent caused by the negligence or willful misconduct of Landlord or any Landlord Related Parties (defined below), and to the maximum extent permitted under applicable law, Tenant shall indemnify, defend and hold Landlord and Landlord Related Parties harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorneys’ fees and other professional fees (collectively referred to as “Losses”), which may be imposed upon, incurred by or asserted against Landlord or any of the Landlord Related Parties arising out of or in connection with any damage or injury occurring in the Premises or any acts or omissions (including violations of Law) of Tenant, its trustees, managers, members, principals, beneficiaries, partners, officers, directors, employees and agents (the “Tenant Related Parties”) or any of Tenant’s transferees, contractors or licensees, or Tenant’s or any Tenant Related Parties’ failure to perform its obligations under this Lease, or otherwise arising out of the use or occupancy of the Premises by Tenant or any Tenant Related Parties. To the maximum extent permitted under applicable law, Tenant hereby waives all claims against and releases Landlord and its trustees, managers, members, principals, beneficiaries, partners, officers, directors, employees, Mortgagees (defined in Article 21) and agents (the “Landlord Related Parties”) from all claims for any loss of business, loss of income or injury to or death of persons, damage to property, scientific research, intellectual property or business loss in any manner related to (a) Force Majeure, (b) acts of third parties, (c) the bursting or leaking of any tank, lab system, water closet, drain or other pipe, or (d) the inadequacy or failure of any security or protective services, personnel or equipment. Tenant hereby agrees that it shall not assert any industrial insurance immunity rights pursuant to Title 51 RCW (as the same may be amended, substituted or replaced) if such assertion would be inconsistent with or otherwise impair Landlord’s right to indemnification under this Section 13.01, and, accordingly, hereby waives all such industrial insurance immunity rights. The foregoing waiver of industrial insurance immunity rights was specifically negotiated by Landlord and Tenant and is solely for the benefit of the Landlord and Tenant, and their successors and assigns, under the Lease, and is not intended as a waiver of Tenant’s rights of immunity under such industrial insurance for any other purposes.

  13.02	Tenant’s Insurance. Tenant shall maintain the following coverages in the following amounts throughout the Term (and during any other periods before or after the Term during which Tenant or any Tenant Related Party enters into or occupies all or any portion of the Premises):

  13.02.1	Commercial general liability insurance covering claims of bodily injury, personal injury and property damage arising out of Tenant’s operations and contractual liabilities, including coverage formerly known as broad form, on an occurrence basis, with minimum primary limits of $[***] per occurrence and $[***] annual aggregate and a minimum excess/umbrella limit of $[***] per occurrence.

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  13.02.2	Property insurance covering (i) Tenant’s Property (as defined below), and (ii) any Leasehold Improvements in the Premises, whether installed by or for the benefit of Tenant under this Lease or any prior lease or other agreement to which Tenant was a party or otherwise (“Tenant‐Insured Improvements”). Such insurance shall be written on a special cause of loss form for physical loss or damage, for the full replacement cost value (subject to reasonable deductible amounts) without deduction for depreciation of the covered items and in amounts that meet any co‐insurance clauses of the policies of insurance, and shall include coverage for damage or other loss caused by fire or other peril, including vandalism and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion, and providing business interruption coverage for a period of one year.

  13.02.3	Worker’s Compensation and Employer’s Liability or other similar insurance to the extent required by Law.

  13.02.4	Pollution Legal Liability insuring Tenant for defense expenses and damages including cleanup costs for pollution events caused or allegedly caused by Tenant, or those for whom Tenant may be liable, in the course of its operations at a minimum limit of $[***], such coverage shall specifically include this Lease as an insured contract.

  The minimum limits of insurance required to be carried by Tenant shall not limit Tenant’s liability. Such insurance shall (i) be issued by an insurance company that has an A.M. Best rating of not less than A‐VIII and licensed to do business in the State of Washington; (ii) be in form and content reasonably acceptable to Landlord; and (iii) provide that it shall not be canceled or materially changed without thirty (30) days’ prior notice to Landlord, except that ten (10) days’ prior notice may be given in the case of nonpayment of premiums. Tenant’s commercial general liability insurance shall (a) name Landlord, Landlord’s managing agent, and any other party designated by Landlord (“Additional Insured Parties”) as additional insureds; and (b) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and non‐contributing with Tenant’s insurance. Tenant shall deliver to Landlord, on or before the earlier to occur of the date Landlord delivers possession of the Premises to Tenant or the Term Commencement Date and at least fifteen (15) days before the expiration dates thereof, certificates from Tenant’s insurance company on the forms currently designated “ACORD 28” (Evidence of Commercial Property Insurance) and “ACORD 25‐S” (Certificate of Liability Insurance) or the equivalent. Attached to the ACORD 25‐S (or equivalent) there shall be an endorsement naming the Additional Insured Parties as additional insureds which shall be binding on Tenant’s insurance company and shall expressly require the insurance company to notify each Additional Insured Party in writing at least thirty (30) days before any termination or material change to the policies, except that ten (10) days’ prior notice may be given in the case of nonpayment of premiums. Notwithstanding the foregoing, if the foregoing requirement that the insurance company provide prior notice to Landlord of cancellation or material change of the applicable policy cannot reasonably be obtained based on then‐prevailing insurance industry practices, Tenant shall so advise Landlord of such unavailability and shall instead provide Landlord with notice of any such cancellation or material change as provided above. Upon Landlord’s request, Tenant shall deliver to Landlord, in lieu of such certificates, copies of the policies of insurance required to be carried under Section 13.02 showing that the Additional Insured Parties are named as additional insureds.

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  Tenant shall maintain such increased amounts of the insurance required to be carried by Tenant under this Section 13.02, and such other types and amounts of insurance covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord, but not in excess of the amounts and types of insurance then being required by institutional landlords of buildings comparable to and in the general vicinity of the Building.

  13.03	Tenant’s Property. All furnishings, fixtures, equipment, and other personal property and effects of Tenant and of all persons claiming through Tenant which from time to time may be on the Premises or elsewhere in the Building or in transit thereto or therefrom (collectively, “Tenant’s Property”) shall be at the sole risk of Tenant to the maximum extent permitted by law and shall be kept insured by Tenant throughout the Term (and during any other periods before or after the Term during which Tenant or any Tenant Related Party enters into or occupies all or any portion of the Premises) at Tenant’s expense in accordance with Section 13.02. Tenant’s Property expressly includes all business fixtures and equipment, including without limitation any security or access control systems installed for the Premises, filing cabinets and racks, removable cubicles and partitions, kitchen equipment, computers and related equipment, raised flooring, supplemental cooling equipment, audiovisual and telecommunications equipment, non‐building standard signage, and other tenant equipment installations, in each case including related conduits, cabling, and brackets or mounting components therefor and any connectors to base building systems and in each case whether installed or affixed in or about the Premises, in building core areas, or elsewhere in the Building.

  13.04	Waiver of Subrogation. Subject to Article 14, each party waives, and shall cause its insurance carrier to waive, any right of recovery against the other for any loss of or damage to property which loss or damage is (or, if the insurance required hereunder had been carried, would have been) covered by property insurance. For purposes of this Section 13.04, any deductible or self‐insured retention with respect to a party’s insurance shall be deemed covered by, and recoverable by such party under, valid and collectable policies of insurance.

  14.	Casualty Damage.

  14.01	Casualty. If all or any portion of the Premises becomes untenantable or inaccessible by fire or other casualty to the Premises or the Common Areas (collectively a “Casualty”), Landlord, with reasonable promptness, shall cause a general contractor selected by Landlord to provide Landlord with a written estimate of the amount of time required, using standard working methods, to substantially complete the repair and restoration of the Premises and any Common Areas necessary to provide access to the Premises (“Completion Estimate”). Landlord shall promptly forward a copy of the Completion Estimate to Tenant. If the Completion Estimate indicates that the Premises or any Common Areas necessary to provide access to the Premises cannot be made tenantable within three hundred sixty‐five (365) days from the date the repair is started, then either party shall have the right to terminate this Lease upon written notice to the other within ten (10) days after Tenant’s receipt of the Completion Estimate. Tenant, however, shall not have the right to terminate this Lease if the Casualty was caused by the negligence or intentional misconduct of Tenant or any Tenant Related Parties. In addition, Landlord, by notice to Tenant within ninety (90) days after the date of the Casualty, shall have the right to terminate this Lease if: (1) the Premises have been materially damaged and less than one (1) year of the Term remains after the date of the Casualty; (2) any Mortgagee requires that the insurance proceeds be applied 

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  to the payment of the mortgage debt; or (3) a material uninsured loss to the Building or Premises occurs.

  14.02	Restoration. If this Lease is not terminated, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, restore the Premises and Common Areas, subject to the following provisions. Such restoration shall be to substantially the same condition that existed prior to the Casualty, except for modifications required by Law or any other modifications to the Common Areas deemed desirable by Landlord. Notwithstanding Section 13.04, upon notice from Landlord, Tenant shall assign or endorse over to Landlord (or to any party designated by Landlord) all property insurance proceeds payable to Tenant under Tenant’s insurance with respect to any Leasehold Improvements; provided if the estimated cost to repair such Leasehold Improvements exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, the excess cost of such repairs shall be paid by Tenant to Landlord prior to Landlord’s commencement of repairs. Within fifteen (15) days after demand, Tenant shall also pay Landlord for any additional excess costs that are determined during the performance of the repairs to such Leasehold Improvements. In no event shall Landlord be required to spend more for the restoration of the Premises, Building and Common Areas than the proceeds received by Landlord, whether from Landlord’s insurance proceeds or proceeds from Tenant. Landlord shall not be liable for any inconvenience to Tenant, or injury to Tenant’s business resulting in any way from the Casualty or the repair thereof. Provided that Tenant is not in Default, during any period of time that all or a material portion of the Premises is rendered untenantable as a result of a Casualty, the Rent shall abate for the portion of the Premises that is untenantable and not used by Tenant. Notwithstanding the foregoing, Landlord may, at its election, require Tenant to perform the restoration work for the Leasehold Improvements, in which event Tenant shall be responsible for performing the restoration work (including any revisions thereto that Tenant may wish to make, pursuant to plans approved by Landlord under Article 8) and the rent abatement period under the preceding sentence shall not exceed the period of time required to diligently perform the restoration of the existing Leasehold Improvements.

  14.03	Insurance Proceeds. If this Lease is terminated by either party on account of any Casualty as provided in this Article 14, then Tenant shall pay to Landlord (by assignment or otherwise) the insurance proceeds paid or payable to Tenant under the policy(ies) referred to in Section 13.02(b) on account of the damage to or loss of the Leasehold Improvements in the Premises; however, from any such proceeds actually received by Tenant, Tenant shall be entitled to retain an amount equal to the unamortized portion (amortized over the initial Term on a straight‐line basis) of the hard costs paid by Tenant to perform such Leasehold Improvements (after deduction of the Tenant Work Allowance and any other work allowance or contribution paid by Landlord for such Leasehold Improvements).

  14.04	Express Agreement. The provisions of this Lease, including this Article 14, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or any other portion of the Property, and any statute or regulation of the State of Washington, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to 

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  this Lease or any damage or destruction to all or any part of the Premises, the Building or any other portion of the Property.

  15.	Condemnation.

  Either party may terminate this Lease if any material part of the Premises is taken or condemned for any public or quasi‐public use under Law, by eminent domain or private purchase in lieu thereof (a “Taking”). Landlord shall also have the right to terminate this Lease if there is a Taking of any portion of the Building or Property which would have a material adverse effect on Landlord’s ability to profitably operate the remainder of the Building. The terminating party shall provide written notice of termination to the other party within forty five (45) days after it first receives notice of the Taking. The termination shall be effective as of the effective date of any order granting possession to, or vesting legal title in, the condemning authority. If this Lease is not terminated, Base Rent and Tenant’s Share shall be appropriately adjusted to account for any reduction in the square footage of the Building or Premises. All compensation awarded for a Taking shall be the property of Landlord. The right to receive compensation or proceeds are expressly waived by Tenant, provided, however, Tenant may file a separate claim for Tenant’s Property and Tenant’s reasonable relocation expenses, provided the filing of the claim does not diminish the amount of Landlord’s award. If only a part of the Premises is subject to a Taking and this Lease is not terminated, Landlord, with reasonable diligence, will restore the remaining portion of the Premises as nearly as practicable to the condition immediately prior to the Taking.

  16.	Events of Default.

  16.01	Default. In addition to any other Default specifically described in this Lease, each of the following occurrences shall be a “Default”: (a) Tenant’s failure to pay any portion of Rent when due, if the failure continues for five (5) Business Days after written notice to Tenant (“Monetary Default”); (b) Tenant’s failure to comply with any term, provision, condition or covenant of this Lease (other than a Monetary Default and other than as set forth in clauses (c) through (h) of this Section), if the failure is not cured within thirty (30) days after written notice to Tenant provided, however, if Tenant’s failure to comply cannot reasonably be cured within such thirty‐(30)‐day period, Tenant shall be allowed additional time (not to exceed an additional ninety (90) days) as is reasonably necessary to cure the failure so long as Tenant begins the cure within such thirty‐(30)‐day period and diligently pursues the cure to completion; (c) Tenant effects or permits a Transfer without Landlord’s required approval or otherwise in violation of Article 11 of this Lease; (d) Tenant becomes insolvent, makes a transfer in fraud of creditors, makes an assignment for the benefit of creditors, admits in writing its inability to pay its debts when due or forfeits or loses its right to conduct business; (e) the leasehold estate is taken by process or operation of Law; (f) if a receiver, guardian, conservator, trustee in bankruptcy or similar officer shall be appointed by a court of competent jurisdiction to take charge of all or any part of Tenant’s property and such appointment is not discharged within ninety (90) days thereafter, or if a petition including, without limitation, a petition for reorganization or arrangement is filed by Tenant under any bankruptcy law or is filed against Tenant and, in the case of a filing against Tenant only, the same shall not be dismissed within ninety (90) days from the date upon which it is filed, or (g) Tenant is in default beyond any notice and cure period under any other lease or agreement with Landlord at the Building or Property. In addition, if Landlord provides Tenant with notice of Tenant’s failure to comply with any specific provision of this Lease on two (2) separate occasions 

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  during any twelve‐(12)‐month period, any subsequent violation of such provision within such twelve‐(12)‐month period shall, at Landlord’s option, constitute a Default by Tenant without the requirement of any further notice or cure period as provided above. All notices sent under this Section shall be in satisfaction of, and not in addition to, any notice required by Law.

  16.02	Remedies. Upon the occurrence of any Default, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever.

  16.02.1	Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim for damages therefor; and Landlord may recover from Tenant the following: (1) the worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus, (2) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus, (3) the worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus, (4) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including, but not limited to, brokerage commissions and advertising expenses incurred, and expenses of restoring the Premises or any portion thereof for a new tenant to the condition in which Landlord delivered the Premises to Tenant, whether for the same or a different use; and (5) at Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. The term “rent” as used in this Section 16.02 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used clauses (1) and (2) above, the “worth at the time of award” shall be computed by allowing interest at the rate set forth in Section 5.1(A) of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in clause (3) above, the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).

  16.02.2	If Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due.

  16.03	Termination of Subleases. Whether or not Landlord elects to terminate this Lease on account of any Default by Tenant, as set forth in this Article 16, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions 

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  or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

  16.04	Specific Enforcement. Landlord shall at all times have the rights and remedies (which shall be cumulative with each other and cumulative and in addition to those rights and remedies available under this Article 16, or any law or other provision of this Lease), without prior demand or notice except as required by Applicable Law, to seek any declaratory, injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. The provisions of this Section 16.04 are not dependent upon the occurrence of a default.

  16.05	Efforts to Relet. No re‐entry or repossession, repairs, maintenance, changes, alterations and additions, reletting, appointment of a receiver to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to terminate this Lease or Tenant’s right to possession, or to accept a surrender of the Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right otherwise available under any law to redeem or reinstate this Lease.

  16.06	Curative Action. If Tenant is in Default of any of its non‐monetary obligations under this Lease, Landlord shall have the right, but not the obligation, to perform any such obligation. Tenant shall reimburse Landlord for the cost of such performance upon demand, together with an administrative charge equal to five percent (5%) of the cost of the work performed by Landlord.

  16.07	Late Charges and Fees. If Tenant does not pay any Rent when due hereunder, then without notice and in addition to all other remedies hereunder, Tenant shall pay to Landlord an administration fee in the amount of four percent (4%) of the unpaid Rent, plus interest on such unpaid amount at the rate of one and one half percent (1.5%) per month from the date such amount was due until the date paid (which interest, as accrued to date, shall be payable from time to time upon Landlord’s demand); provided, however, in no event shall such interest exceed the maximum amount permitted to be charged by applicable law. Notwithstanding the foregoing, Tenant shall be entitled to a grace period of five (5) days for the first late payment of Rent in any twelve‐(12)‐month period prior to the imposition of the foregoing amounts. In addition, Tenant shall pay to Landlord a reasonable fee for any checks returned by Tenant’s bank for any reason.

  16.08	Enforcement Costs. Tenant shall pay to Landlord, as Additional Rent, the costs and expenses, including reasonable attorneys’ fees, incurred in enforcing any obligations of Tenant under this Lease with which Tenant has failed to comply.

  16.09	General. The repossession or re‐entering of all or any part of the Premises shall not relieve Tenant of its liabilities and obligations under this Lease. No right or remedy of Landlord shall be exclusive of any other right or remedy, and each right and remedy shall be cumulative and in addition to any other right and remedy now or subsequently available to Landlord at law or in equity.

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  17.	Limitation of Liability.

  17.01	Landlord’s Liability. Tenant agrees from time to time to look only to Landlord’s interest in the Building for satisfaction of any claim against Landlord hereunder or under any other instrument related to the Lease (including any separate agreements among the parties and any notices or certificates delivered by Landlord) and not to any other property or assets of Landlord. The obligations of Landlord shall not be binding on any direct or indirect partners (or members, trustees or beneficiaries) of Landlord or of any successor, individually, but only upon Landlord’s or such successor’s interest described above. If Landlord shall refuse or fail to provide any consent or approval for any matter for which Landlord’s consent or approval is required under this Lease or is otherwise requested by Tenant, Landlord shall not be liable for damages as a result thereof, and Tenant’s sole remedy to enforce any alleged obligation of Landlord to provide such consent or approval shall be an action for specific performance, injunction, or declaratory relief.

  17.02	Assignment of Rents.

  17.02.1	With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to the holder of a mortgage on property which includes the Premises, Tenant agrees that the execution thereof by Landlord, and the acceptance thereof by the holder of such mortgage shall never be treated as an assumption by such holder of any of the obligations of Landlord hereunder unless such holder shall, by notice sent to Tenant, specifically otherwise elect and, except as aforesaid, such holder shall be treated as having assumed Landlord’s obligations hereunder only upon foreclosure of such holder’s mortgage and the taking of possession of the Premises.

  17.02.2	In no event shall the acquisition of Landlord’s interest in the Property by a purchaser which, simultaneously therewith, leases Landlord’s entire interest in the Property back to the seller thereof be treated as an assumption by operation of law or otherwise, of Landlord’s obligations hereunder, but Tenant shall look solely to such seller‐lessee, and its successors from time to time in title, for performance of Landlord’s obligations hereunder. In any such event, this Lease shall be subject and subordinate to the lease to such purchaser. For all purposes, such seller‐lessee, and its successors in title, shall be the Landlord hereunder unless and until Landlord’s position shall have been assumed by such purchaser‐lessor.

  17.02.3	Except as provided in paragraph (b) of this Section 17.02, in the event of any transfer of title to the Property by Landlord, Landlord shall thereafter be entirely freed and relieved from the performance and observance of all covenants and obligations hereunder. Tenant hereby agrees to enter into such agreements or instruments as may, from time to time, be requested in confirmation of the foregoing.

  17.03	Landlord Default. In the event Tenant alleges that Landlord is in default under any of Landlord’s obligations under this Lease, Tenant agrees to give any Mortgagee (as defined in Article 21, by registered mail, a copy of any notice of default which is served upon the Landlord, provided that prior to such notice, Tenant has been notified, in writing (whether by way of notice of an assignment of lease, request to execute an estoppel letter, or otherwise), of the identity and address of any such Mortgagee. Tenant further agrees that if Landlord shall have failed to cure such default within the time provided by law or such additional time as may be provided in this 

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  Lease or such notice to Landlord, such Mortgagee shall have a period of thirty (30) days after the last date on which Landlord could have cured such default within which such Mortgagee will be permitted, but not be obligated, to cure such default. If such default cannot be cured within such thirty‐(30)‐day period, then such Mortgagee shall have such additional time as may be necessary to cure such default, if prior to the end of such thirty‐(30)‐day period such Mortgagee has commenced and is diligently pursuing such cure or the remedies under the Mortgage necessary for Mortgagee to be able to effect such cure, in which event Tenant shall have no right with respect to such default while such cure and remedies are being diligently pursued by such Mortgagee. Except as may be expressly provided in this Lease, in no event shall Tenant have the right to terminate the Lease nor shall Tenant’s obligation to pay Base Rent or other charges under this Lease abate based upon any default by Landlord of its obligations under the Lease. In no event shall Landlord or any Landlord Related Party ever be liable to Tenant for loss of profits, loss of business, or indirect or consequential damages suffered by Tenant from whatever cause.

  18.	Intentionally Omitted.

  19.	Holding Over.

  If Tenant fails to surrender all or any part of the Premises at the expiration or earlier termination of this Lease, any such occupancy of all or any part of the Premises after such expiration or termination shall be that of a tenancy at sufferance only. Any such occupancy after such expiration or termination shall be subject to all the terms and provisions of this Lease, except that Tenant shall pay an amount for such occupancy (on a per month basis without reduction for partial months during the holdover) equal to one hundred fifty percent (150%) of the Base Rent (plus the actual amount of any Additional Rent) due for the month immediately preceding the holdover for the first thirty (30) days of such holdover and two hundred percent (200%) of such amounts thereafter. No holdover by Tenant or payment by Tenant after the expiration or earlier termination of this Lease shall be construed to extend the Term or prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise. In addition, if as a result of such holdover, Landlord is unable to deliver possession of space to a new tenant or to perform improvements therein for a new tenant due to Tenant’s failure to timely vacate all or part of the Premises, Tenant shall be liable to Landlord for all damages and losses that Landlord suffers from the holdover.

  20.	Surrender of Premises.

  20.01	Condition. At the expiration or earlier termination of this Lease or Tenant’s right of possession hereunder, Tenant shall remove all Tenant’s Property from the Premises, remove all Required Removables (if any) under Section 8.03 (except to the extent otherwise directed in writing by Landlord), and quit and surrender the Premises to Landlord, broom clean, and in good order, condition and repair, ordinary wear and tear and damage which Landlord is obligated to repair hereunder excepted. Tenant shall repair any damage caused by the installation or removal of Tenant’s Property or Required Removables and restore the affected portion of the Premises so that it is useable by a succeeding tenant in a manner consistent with first class standards. If Tenant fails to remove any of Tenant’s Property or to restore or repair the Premises to the required condition as provided herein upon the expiration of the Term of this Lease (or, as applicable, within five (5) Business Days after any earlier termination of this Lease or Tenant’s right to possession 

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  hereunder), then Landlord, at Tenant’s sole cost and expense, shall be entitled, but not obligated, to remove and store Tenant’s Property and/or perform such restoration or repair of the Premises. Landlord shall not be responsible for the value, preservation, or safekeeping of Tenant’s Property, and Tenant shall pay to Landlord, upon demand, the expenses and storage charges so incurred. If Tenant fails to remove Tenant’s Property from the Premises or storage, within thirty (30) days after notice, Landlord may deem all or any part of Tenant’s Property to be abandoned and, at Landlord’s option, title to Tenant’s Property shall vest in Landlord or Landlord may dispose of Tenant’s Property in any manner Landlord deems appropriate.

  20.02	Surrender Plan. Furthermore, upon the expiration of the Term or earlier termination of Tenant’s right of possession, Tenant shall surrender the Premises to Landlord free of Hazardous Materials brought upon, kept, used, stored, handled, treated, generated in, or released or disposed of from, the Premises by any person other than Landlord (collectively, “HazMat Operations”) and released of any license, clearance or other authorization of any kind required to enter into and restore the Premises issued by any Governmental Authority having jurisdiction over the use, storage, handling, treatment, generation, release, disposal, removal or remediation of Hazardous Materials in, on or about the Premises. At least three (3) months prior to the surrender of the Premises, Tenant shall deliver to Landlord a narrative description of the actions proposed (or required by any Governmental Authority) to be taken by Tenant in order to surrender the Premises (including any Alterations permitted by Landlord to remain in the Premises) at the expiration or earlier termination of the Term, fully decommissioned (including, without limitation, removal of all Hazardous Materials in accordance with applicable laws) and free from any residual impact from the HazMat Operations and otherwise released for unrestricted use and occupancy (the “Surrender Plan”). Such Surrender Plan shall be accompanied by a current listing of (i) all Hazardous Materials licenses and permits held by or on behalf of any Tenant Party with respect to the Premises, and (ii) all Hazardous Materials used, stored, handled, treated, generated, released or disposed of from the Premises, and shall be subject to the review and approval of Landlord’s environmental consultant (such approval not to be unreasonably withheld or conditioned). In connection with the review and approval of the Surrender Plan, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant such additional non‐proprietary information concerning Tenant HazMat Operations as Landlord shall request. On or before such surrender, Tenant shall deliver to Landlord evidence that the approved Surrender Plan shall have been satisfactorily completed and Landlord shall have the right, subject to reimbursement at Tenant’s expense as set forth below, to cause Landlord’s environmental consultant to inspect the Premises and perform such additional procedures as may be deemed reasonably necessary to confirm that the Premises (including, without limitation, all floors, walls, ceiling and counters piping, supply lines, waste lines and plumbing and all exhaust and other ductwork in the Premises) are, as of the effective date of such surrender or early termination of the Lease, free from any residual impact from HazMat Operations. Tenant shall reimburse Landlord, as Additional Rent, for the actual out‐of‐pocket expense incurred by Landlord for Landlord’s environmental consultant to review and approve the Surrender Plan and to visit the Premises and verify satisfactory completion of the same (not to exceed $[***] in then‐current dollars). Tenants acknowledges and agrees that it shall surrender the Premises in a condition of environmental hygiene that it may be reused by a subsequent tenant for office, research and development, or laboratory use without incurring special costs or undertaking special procedures for demolition, disposal, investigation, assessment, cleaning or removal of any Hazardous Materials without giving notice in connection with such Hazardous Materials. Landlord shall have the unrestricted right to deliver such Surrender Plan and 

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  any report by Landlord’s environmental consultant with respect to the surrender of the Premises to third parties. If Tenant shall fail to prepare or submit a Surrender Plan approved by Landlord, or if Tenant shall fail to complete the approved Surrender Plan, or if such Surrender Plan, whether or not approved by Landlord, shall fail to adequately address any residual effect of HazMat Operations in, on or about the Premises, Landlord shall have the right to take such actions as Landlord may deem reasonable or appropriate to assure that the Premises are surrendered free from any residual impact from HazMat Operations, the cost of which actions shall be reimbursed by Tenant as Additional Rent.

  21.	Subordination to Mortgages; Estoppel Certificate.

  21.01	Subordination. This Lease is and shall be subject and subordinate to any mortgage(s), deed(s) of trust, deeds to secure debt, ground lease(s) or other lien(s) now or subsequently arising upon the Premises, the Building or the Property, and to all renewals, modifications, refinancings, and extensions thereof (collectively referred to as a “Mortgage”). The party having the benefit of a Mortgage shall be referred to as a “Mortgagee”. This clause shall be self‐operative, but upon request from Landlord or a Mortgagee, Tenant shall execute a subordination agreement in favor of the Mortgagee in such Mortgagee’s standard form, with such commercially reasonable changes as Tenant may request that are acceptable to Mortgagee. As an alternative, any Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease. Upon request, Tenant, without charge, shall attorn to any successor to Landlord’s interest in this Lease. In the event Mortgagee enforces it rights under the Mortgage, Tenant, at Mortgagee’s option, will attorn to Mortgagee or its successor; provided, however, that Mortgagee or its successor shall not be liable for or bound by (i) any payment of any Rent installment which may have been made more than thirty (30) days before the due date of such installment, (ii) except for acts, omissions, or defaults that are continuing in nature, any act or omission of or default by Landlord under this Lease (but Mortgagee, or such successor, shall be subject to the continuing obligations of landlord under the Lease arising from and after such succession, but only to the extent of Mortgagee’s, or such successor’s, interest in the Property as provided in Article 17), (iii) any credits, claims, setoffs or defenses which Tenant may have against Landlord, or (iv) any obligation under this Lease to maintain a fitness facility at the Building, if any. Tenant, upon the reasonable request by Mortgagee or such successor in interest, shall execute and deliver an instrument or instruments confirming such attornment.

  21.02	Modification of Lease. If any Mortgagee requires a modification of this Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are reasonably required therefor and to deliver the same to Landlord within ten (10) Business Days following a request therefor.

  21.03	Estoppel Certificate. Tenant shall, within ten (10) Business Days after receipt of a written request, execute and deliver a commercially reasonable estoppel certificate addressed to Landlord and any parties reasonably requested by Landlord, such as a current or prospective Mortgagee or purchaser of the Building. Without limitation, such estoppel certificate may include a certification as to the status of this Lease and any particular obligations thereunder, the existence of any defaults, and the amount of Rent that is then due and payable.

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  21.04	Tenant Information. Upon Landlord’s request from time to time during the Term only, and only to the extent Tenant is not a public company, Tenant shall provide to Landlord the financial statements for Tenant for its most recent fiscal year and fiscal quarter. Financial statements for each fiscal year shall be prepared and certified by a certified public accountant; financial statements for each quarter shall be prepared and certified by Tenant’s chief financial officer. If requested by Tenant, such financial statements shall be furnished pursuant to a confidentiality agreement in a form reasonably provided by Landlord for such purpose. Provided Tenant is not a public company, Landlord agrees, for so long as this Lease is in effect, to maintain in confidence the Tenant’s financial information delivered to Landlord in connection with this Section 21.04, which Landlord shall not disclose to any third party other than (a) to its affiliates, employees, agents, advisors, attorneys, lenders, purchasers, investors, partners and representatives; (b) to the extent required by any applicable statute, law, regulation or governmental authority; and (c) in connection with any litigation that may arise between the parties in connection with the transactions contemplated by this Agreement. Landlord’s agreement to maintain confidential information hereunder shall not include information which (x) was or becomes generally available to the public other than as a result of a disclosure by Landlord in violation of the foregoing provision, or (y) was available to Landlord on a non‐confidential basis prior to its disclosure by the Tenant or their respective representatives or agents, or (z) becomes available to Landlord on a non‐confidential basis from a source other than the Tenant, provided that such source is not bound by a confidentiality agreement with Landlord or otherwise prohibited from transmitting the information to Landlord by a contractual, legal or fiduciary obligation.

  22.	Environmental Provisions.

  22.01	Prohibition/Compliance/Indemnity. Tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be brought upon, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises or anywhere on the Property in violation of applicable Environmental Requirements (as hereinafter defined) by Tenant or any Tenant Related Parties or any of Tenant’s transferees, contractors or licensees (or any of Tenant’s assignees, sublessees and/or licensees respective agents, servants, employees, invitees and contractors) (collectively, “Tenant Parties”; any of them, a “Tenant Party”). If Tenant breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials in the Premises or anywhere on the Property during the Term or any holding over results in contamination of the Premises, the Property and/or any adjacent property or if contamination of the Premises, the Property and/or any adjacent property by Hazardous Materials brought into, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises by anyone other than Landlord and Landlord’s employees, agents and contractors otherwise occurs during the Term or any holding over, Tenant hereby indemnifies and shall defend and hold Landlord, its officers, directors, employees, managers, agents, sub‐agents, affiliates and contractors harmless from any and all actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom), costs, claims, damages (including, without limitation, punitive damages and damages based upon diminution in value of the Premises, or the loss of, or restriction on, use of the Premises), expenses (including, without limitation, attorneys’, consultants’ and experts’ fees, court costs and amounts paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal injury, property damage, or contamination of, or adverse 

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  effects upon, the environment, water tables or natural resources), liabilities or losses (collectively, “Environmental Claims”) that arise during or after the Term as a result of such contamination. This indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, treatment, remedial, removal, or restoration work required by any federal, state or local Governmental Authority because of Hazardous Materials present in the air, soil or ground water above, on, or under the Premises, the Property, or any other adjacent property. Without limiting the foregoing, if the presence of any Hazardous Materials in, on or under the Premises, the Property, or any adjacent property caused or permitted by Tenant or any Tenant Party results in any contamination, Tenant shall promptly take all actions at its sole expense and in accordance with applicable Environmental Requirements as are necessary to return the Premises, the Property, and/or any adjacent property to the condition existing prior to the time of such contamination, provided that Landlord’s approval of such action shall first be obtained.

  22.02	Business. Landlord acknowledges that it is not the intent of this Article 22 to prohibit Tenant from using the Premises for the Permitted Use. Tenant may operate its business according to prudent industry practices so long as the use or presence of Hazardous Materials is strictly and properly monitored according to all then applicable Environmental Requirements; provided, however, in no event shall Tenant or anyone claiming by through or under Tenant perform work above the risk category Biosafety Level 2 as established by the Department of Health and Human Services (“DHHS”) and as further described in the DHHS publication Biosafety in Microbiological and Biomedical Laboratories (5th Edition) (as it may be or may have been further revised, the “BMBL”) or such nationally recognized new or replacement standards as Landlord may reasonable designate. Tenant shall comply with all applicable provisions of the standards of the BMBL to the extent applicable to Tenant’s operations in the Premises. All Hazardous Materials at the Premises must be used solely in the operation of Tenant’s business (including any repairs, maintenance, and cleaning that Tenant is required to perform under this Lease), and such use shall be consistent with similar first‐class facilities engaged in the Permitted Use in the Seattle market. As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business, Tenant agrees to deliver to Landlord prior to the Term Commencement Date a list identifying each type of Hazardous Materials to be brought upon, kept, used, stored, handled, treated, generated on, or released or disposed of from, the Premises and setting forth any and all governmental approvals or permits required in connection with the presence, use, storage, handling, treatment, generation, release or disposal of such Hazardous Materials on or from the Premises (“Hazardous Materials List”). Upon Landlord’s request, or any time that Tenant is required to deliver a Hazardous Materials List to any federal, provincial, or municipal governmental authority (e.g., the fire department) (a “Governmental Authority”) in connection with Tenant’s use or occupancy of the Premises, Tenant shall deliver to Landlord a copy of such Hazardous Materials List. Tenant shall deliver to Landlord prior to the Term Commencement Date true and correct copies of the following documents (the “Haz Mat Documents”) relating to the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials at the Premises, or if unavailable at that time, concurrent with the receipt from or submission to a Governmental Authority: permits; approvals; reports and substantive correspondence with Governmental Authorities; storage and management plans, notice of violations of any Laws; and a Surrender Plan (to the extent surrender in accordance with Article 20 cannot be accomplished in three (3) months). Tenant is not required, however, to provide Landlord with any portion(s) of the 

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  Haz Mat Documents containing information of a proprietary nature that, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities.

  22.03	Tenant Representation and Warranty. Tenant hereby represents and warrants to Landlord that (i) neither Tenant nor any of its legal predecessors has been required by any prior landlord, lender or Governmental Authority at any time to take remedial action in connection with Hazardous Materials contaminating a property, which contamination was permitted by Tenant or such predecessor or resulted from Tenant’s or such predecessor’s action or use of the property in question, and (ii) Tenant is not subject to any enforcement order issued by any Governmental Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority).

  22.04	Testing. Landlord shall have the right but not the obligation to conduct annual tests of the Premises in accordance with a scope of work coordinated with Tenant to determine whether any contamination of the Premises has occurred as a result of Tenant’s use. Landlord shall pay the cost of such annual test of the Premises without reimbursement from Tenant as an Expense or otherwise; provided, however, that if Tenant conducts its own tests of the Premises using third party contractors and test procedures acceptable to Landlord, and which tests are certified to Landlord, Landlord shall accept such tests in lieu of the annual tests to be paid for by Tenant. In addition, at any time, and from time to time, prior to the expiration or earlier termination of the Term, Landlord shall have the right to conduct additional appropriate tests of the Premises to determine if contamination has occurred as a result of Tenant’s use of the Premises; provided that Landlord in such case shall demonstrate a reasonable basis for performing such tests beyond the annual tests contemplated above. In connection with such testing, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant such non‐proprietary information concerning the use of Hazardous Materials in or about the Premises by Tenant or any Tenant Party. Landlord shall provide Tenant with a copy of all third party, non‐confidential reports and tests of the Premises made by or on behalf of Landlord during the Term without representation or warranty and subject to a confidentiality agreement. Tenant shall, at its sole cost and expense, promptly remediate any environmental conditions identified by such testing in accordance with all Environmental Requirements. Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights that Landlord may have against Tenant.

  22.05	Tenant’s Obligations. Tenant’s obligations under this Article 22 shall survive the expiration or earlier termination of the Lease. During any period of time after the expiration or earlier termination of this Lease required by Tenant or Landlord to complete the removal from the Premises of any Hazardous Materials (including, without limitation, the release and termination of any licenses or permits restricting the use of the Premises and the completion of the approved Surrender Plan), Tenant shall continue to pay the full Rent in accordance with this Lease for any portion of the Premises not relet by Landlord in Landlord’s sole discretion, which Rent shall be prorated daily.

  22.06	Definitions. As used herein, the term “Environmental Requirements” means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any Governmental Authority regulating or relating to health, safety, or environmental conditions on, under, or about the Property, or the environment, including without 

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  limitation, the following: all requirements pertaining to reporting, licensing, permitting, investigation and/or remediation of emissions, discharges, Releases, or threatened Releases of Hazardous Materials, whether solid, liquid, or gaseous in nature, into the air, surface water, groundwater, or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of Hazardous Materials; and (ii) all requirements pertaining to the health and safety of employees or the public. Environmental Laws include, but are not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC § 9601, et seq., the Hazardous Materials Transportation Authorization Act of 1994, 49 USC § 5101, et seq., the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, and Hazardous and Solid Waste Amendments of 1984, 42 USC§ 6901, et seq., the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC § 1251, et seq., the Clean Air Act of 1966, 42 USC § 7401, et seq., the Toxic Substances Control Act of 1976, 15 USC§ 2601, et seq., the Safe Drinking Water Act of 1974, 42 USC§§ 300f through 300j, the Occupational Safety and Health Act of 1970, as amended, 29 USC § 651 et seq., the Oil Pollution Act of 1990, 33 USC§ 2701 et seq., the Emergency Planning and Community Right‐To‐Know Act of 1986, 42 USC § 11001 et seq., the National Environmental Policy Act of 1969, 42 USC § 4321 et seq., the Federal Insecticide, Fungicide and Rodenticide Act of 1947, 7 USC§ 136 et seq., and any other state or local law counterparts, as amended, as such Laws, are in effect as of the Term Commencement Date, or thereafter adopted, published or promulgated. As used herein, the term “Hazardous Materials” means and includes any substance, material, waste, pollutant, or contaminant listed or defined as hazardous or toxic, or regulated by reason of its impact or potential impact on humans, animals and/or the environment under any Environmental Requirements, asbestos and petroleum, including crude oil or any fraction thereof, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas) and any “hazardous material”. As defined in Environmental Requirements, Tenant is and shall be deemed to be the “operator” of Tenant’s “facility” and the “owner” of all Hazardous Materials brought on the Property by Tenant or any Tenant Party, and the wastes, by‐products, or residues generated, resulting, or produced therefrom. “Release” or “Released” or “Releases” shall mean any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing, or other movement of Hazardous Materials into the environment.

  23.	Parking.

  During the Term, Landlord shall lease to Tenant, or cause the operator (the “Operator”) of subterranean parking serving the Building to lease to Tenant parking passes, for use by standard size automobiles and small utility vehicles in an amount equal to the number of parking passes set forth in Section 1.17, and Tenant shall pay monthly, as Additional Rent, the current amount set forth in Section 1.17, per parking pass (and subject to increase as provided therein). Tenant’s leasing of such parking passes shall be subject to the following:

  23.01	No deductions or allowances shall be made for days when Tenant or any of its employees does not utilize the parking facilities or for Tenant utilizing less than all of the passes. Tenant shall not have the right to lease or otherwise use more than the number of unreserved passes set forth above;

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  23.02	Except for particular passes and areas (if any) designated by Landlord or the Operator for reserved parking, all parking in the parking facility shall be on an unreserved, first‐come, first‐served basis;

  23.03	Neither Landlord nor the Operator shall be responsible for money, jewelry, automobiles or other personal property lost in or stolen from the parking facility regardless of whether such loss or theft occurs when the parking facility or other areas therein are locked or otherwise secured. Without limiting the terms of the preceding sentence, Landlord shall not be liable for any loss, injury or damage to persons using the parking facility or automobiles or other property therein, it being agreed that, to the fullest extent permitted by law, the use of the passes shall be at the sole risk of Tenant and its employees;

  23.04	Landlord or its Operator shall have the right from time to time to designate the location of the passes and to promulgate reasonable rules and regulations regarding the parking facility, the passes and the use thereof, including, but not limited to, rules and regulations controlling the flow of traffic to and from various parking areas, the angle and direction of parking and the like. Tenant shall comply with and cause its employees to comply with all such rules and regulations and all reasonable additions and amendments thereto;

  23.05	Tenant shall not store or permit its employees to store any automobiles in the parking facility without the prior written consent of Landlord. Except for emergency repairs, Tenant and its employees shall not perform any work on any automobiles while located in the parking facility or on the Property. If it is necessary for Tenant or its employees to leave an automobile in the parking facility overnight, Tenant shall provide Landlord with prior notice thereof designating the license plate number and model of such automobile;

  23.06	Landlord or the Operator shall have the right to temporarily close the parking facility or certain areas therein in order to perform necessary repairs, maintenance and improvements to the parking facility;

  23.07	Landlord or the Operator shall have the right to temporarily close the parking facility or certain areas therein in order to perform necessary repairs, maintenance and improvements to the parking facility;

  23.08	Landlord may elect to provide parking cards or keys to control access to the parking facility. In such event, Landlord shall provide Tenant with one card or key for each pass that Tenant is leasing hereunder, provided that Landlord shall have the right to require Tenant or its employees to place a deposit on such access cards or keys and to pay a fee for any lost or damages cards or keys.

  24.	Miscellaneous.

  24.01	Measurement of Floor Area. Landlord and Tenant stipulate and agree that the Rentable Floor Area of the Premises originally leased to Tenant shall be conclusively deemed to be as specified in Article 1 and that the Rentable Floor Area of the Building is as specified in Article 1 as of the date hereof. Any change in the Rentable Floor Area of the Premises on account of expansion shall be conclusively deemed to be as specified in any applicable expansion provisions under Exhibit F (if any) or in any amendment hereafter executed by Landlord and 

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  Tenant in connection with such expansion (if any). Any other change in the Rentable Floor Area of the Premises on account of casualty, condemnation, or the like shall be determined in accordance with the measurement standard that was originally used to determine the stipulated Rentable Floor Area for the space in question and Tenant’s Base Rent shall be adjusted accordingly to reflect such change in Rentable Floor Area. Any change in the Rentable Floor Area of the Building on account of casualty, condemnation, or the like shall be determined from time to time by Landlord based on area computations supplied by Landlord’s architect, which determinations shall be conclusive, in such event Tenant’s Share shall be adjusted accordingly if such change results in a Rentable Floor Area reduction of greater than five percent (5%). References in this Lease to floor area measurements and square footage shall mean Rentable Floor Area unless the reference explicitly provides otherwise.

  24.02	No Recording of Lease; Confidentiality. Neither party shall not record this Lease or any memorandum or notice without the other party’s prior written consent. If this Lease is terminated before the Term expires, upon Landlord’s written request the parties shall execute, deliver and record an instrument acknowledging such termination date of this Lease. Landlord and Tenant acknowledge that this Lease contains confidential information and that each party shall keep such information confidential and shall not disclose such confidential information to any person or entity other than (i) such party’s legal, accounting and/or professional consultants as well as any lenders, prospective purchasers and other parties on a “need to know” basis, provided they are instructed to maintain such information in confidence or (ii) as may be necessary to comply with applicable laws and regulations (including, without limitation, SEC compliance and reporting obligations).

  24.03	Governing Law, Etc. This Lease shall be interpreted and enforced in accordance with the Laws of the State of Washington and Landlord and Tenant hereby irrevocably consent to the jurisdiction and proper venue of such State. This Lease contains all of the agreements and understandings between Landlord and Tenant with respect to the Premises and supersedes all prior writings and dealings between them with respect thereto, including all lease proposals, letters of intent and other documents. Neither party is relying upon any warranty, statement or representation not contained in this Lease. If any term or provision of this Lease shall to any extent be void or unenforceable, the remainder of this Lease shall not be affected. This Lease may be amended only by a writing signed by all of the parties hereto. The titles are for convenience only and shall not be considered a part of the Lease. Where the phrases “persons acting under Tenant” or “persons claiming under Tenant” or similar phrases are used, such persons shall include subtenants, sub‐subtenants, and licensees, and all employees, agents, independent contractors and invitees of Tenant or of such other parties. The enumeration of specific examples of or inclusions in a general provision shall not be construed as a limitation of the general provision. If Tenant is granted any extension option, expansion option, or other right or option, the exercise of such right or option (and notice thereof) must be unconditional to be effective, time always being of the essence to the exercise of such right or option; and if Tenant purports to condition the exercise of any option or to vary its terms in any manner, then the option granted shall be void and the purported exercise shall be ineffective. Unless otherwise stated herein, any consent or approval required hereunder may be given or withheld in the sole absolute discretion of the party whose consent or approval is required. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers, or any relationship other than landlord and tenant. If there is more than one Tenant or if Tenant is comprised of more than one 

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  party or entity, the obligations imposed upon Tenant shall be joint and several obligations of all such parties and entities, any requests or demands from any one person or entity comprising Tenant shall be deemed to have been made by all such persons or entities, and notices to any one person or entity comprising Tenant shall be deemed to have been given to all such persons and entities. Tenant’s covenants contained in this Lease are independent and not dependent, and Tenant hereby waives the benefit of any statute or judicial law to the contrary. Tenant’s covenant to pay Rent is independent of every other covenant in this Lease. Tenant’s obligation to pay Rent shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Premises, or any other restriction on Tenant’s use, or (except as expressly provided in this Lease) any casualty or taking, or any failure by Landlord to perform any covenant contained herein, or any other occurrence; and no termination or abatement remedy that is not expressly provided for in this Lease for any breach or failure by Landlord to perform any obligation under this Lease shall be implied or applicable as a matter of law.

  24.04	Representations. Tenant represents and warrants to Landlord, and agrees, that each individual executing this Lease on behalf of Tenant is authorized to do so on behalf of Tenant and that the entity(ies) or individual(s) constituting Tenant, or which may own or control Tenant, or which may be owned or controlled by Tenant, or any of Tenant’s affiliates, or any of their respective partners, members, shareholders or other equity owners, and their respective employees, officers, directors, representatives or agents are not and at no time will be (i) in violation of any Laws relating to terrorism or money laundering, or (ii) among the individuals or entities with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List for the purpose of identifying suspected terrorists or on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, http://www.treasury.gov/resource‐center/sanctions/SDN‐List/Pages/default.aspx or any replacement website or other replacement official publication of such list) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, known as Executive Order 13224), or other governmental action and Tenant will not Transfer this Lease to, contract with or otherwise engage in any dealings or transactions or be otherwise associated with such persons or entities.

  24.05	Waiver of Trial by Jury; No Other Waiver. Landlord and Tenant hereby waive any right to trial by jury in any proceeding based upon a breach of this Lease. No failure by either party to declare a default immediately upon its occurrence, nor any delay by either party in taking action for a default, nor Landlord’s acceptance of Rent with knowledge of a default by Tenant, shall constitute a waiver of the default, nor shall it constitute an estoppel. The delivery of keys to Landlord or to Landlord’s property manager shall not operate as a termination of this Lease or a surrender of the Premises.

  24.06	Time Periods. Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant (other than the payment of the Security Deposit (if any) or Rent or the inability to perform due to shortage in, or inability to obtain, funds), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, pandemics, shortages of labor or materials, war, 

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  terrorist acts, governmental action or inaction, civil disturbances and other causes beyond the reasonable control of the performing party (“Force Majeure”).

  24.07	Transfer of the Property. Landlord shall have the right from time to time to transfer and assign, in whole or in part, all of its rights and obligations under this Lease and in the Building and Property. From and after the date of transfer, Landlord shall be released from any further obligations hereunder and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations, to the extent that any successor pursuant to a voluntary, third party transfer (but not as part of an involuntary transfer resulting from a foreclosure or deed in lieu thereof) shall have assumed Landlord’s obligations under this Lease from and after the date of the transfer.

  24.08	Submission. The submission of this Lease to Tenant or a summary of some or all of its provisions for examination does not constitute a reservation of or option for the Premises or an offer to lease, and no legal obligations shall arise with respect to the Premises or other matters herein unless and until such time as this Lease is executed and delivered by Landlord and Tenant and approved by the holder of any mortgage on the Building having the right to approve this Lease.

  24.09	Broker. Landlord and Tenant each represent that they have dealt directly with and only with the Broker (described in Article 1) as a broker, agent or finder in connection with this Lease. Excepting the Broker, Landlord and Tenant shall indemnify and hold the other (including Landlord and Tenant Related parties, respectively) harmless from all claims of any other brokers, agents or finders claiming to have represented Tenant in connection with this Lease. Any assistance rendered by any agent or employee of Landlord in connection with this Lease or any subsequent amendment or modification or any other document related hereto has been or will be made as an accommodation to Tenant solely in furtherance of consummating the transaction on behalf of Landlord, and not as agent for Tenant. Landlord shall pay a commission to the Broker pursuant to a separate written agreement between Landlord and the Broker.

  24.10	Survival. The expiration of the Term, whether by lapse of time, termination or otherwise, shall not relieve either party of any obligations that accrued prior to or which may continue to accrue after the expiration or termination of this Lease.

  24.11	Quiet Enjoyment. This Lease is subject to all easements, restrictions, agreements, and encumbrances of record to the extent in force and applicable. Landlord covenants that Tenant, on paying the Rent and performing the tenant obligations in this Lease, shall peacefully and quietly have, hold and enjoy the Premises, free from any claim by Landlord or persons claiming under Landlord, but subject to all of the terms and provisions hereof, provisions of Law, and rights of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so‐called quiet enjoyment covenant, either express or implied. This covenant shall be binding upon Landlord and its successors only during its or their respective periods of ownership of the Building.

  24.12	Reservations. This Lease does not grant any rights to light or air over or about the Building. Landlord excepts and reserves exclusively to itself any and all rights not specifically granted to Tenant under this Lease. Landlord reserves the right to make changes to the Property, Building and Common Areas as Landlord deems appropriate. Wherever this Lease requires Landlord to provide a customary service or to act in a reasonable manner (whether in incurring an 

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  expense, establishing a rule or regulation, providing an approval or consent, or performing any other act), this Lease shall be deemed also to provide that whether such service is customary or such conduct is reasonable shall be determined by reference to the practices of owners of buildings that (i) are comparable to the Building in size, age, class, quality and location, (ii) at Landlord’s option, have been, or are being prepared to be, certified under the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system or a similar rating system, and (iii) leased on a so‐called triple net basis.

  24.13	REIT Provisions. Tenant and Landlord intend that all amounts payable by Tenant to Landlord shall qualify as “rents from real property,” and will otherwise not constitute “unrelated business taxable income” or “impermissible tenant services income,” all within the meaning of Section 856(d) of the Internal Revenue Code of 1986, as amended (the “Code”) and the U.S. Department of Treasury Regulations promulgated thereunder (the “Regulations”). In the event that Landlord determines that there is any risk that any amount payable under this Lease may not qualify as “rents from real property” or will otherwise constitute impermissible tenant services income within the meaning of Section 856(d) of the Code and the Regulations, Tenant agrees to (a) cooperate with Landlord by entering into such amendment or amendments as Landlord deems necessary to qualify all amounts payable under this Lease as “rents from real property,” and (b) permit (and, upon request, to acknowledge in writing) an assignment of the obligation to provide certain services under the Lease, and, upon request, to enter into direct agreements with the parties furnishing such services (which shall include, but not be limited to, a taxable REIT subsidiary of Landlord). Notwithstanding the foregoing, Tenant shall not be required to take any action pursuant to the preceding sentence (including acknowledging in writing an assignment of services pursuant thereto) if such action would result in (i) Tenant incurring more than de minimis additional liability under this Lease, or (ii) more than a de minimis negative change in the quality or level of Building operations or services rendered to Tenant under this Lease. For the avoidance of doubt: (A) if Tenant does not acknowledge in writing an assignment as described in clause (b) above (it being agreed that Tenant shall not unreasonably withhold, condition or delay such acknowledgment so long as the criteria in clauses (i) and (ii) hereinabove are satisfied), then Landlord shall not be released from liability under this Lease with respect to the services so assigned; and (B) nothing in this Section 24.13 shall limit or otherwise affect Landlord’s ability to assign its entire interest in this Lease to any party as part of a conveyance of Landlord’s ownership interest in the Building.

  24.14	Execution. This Lease may be executed in one or more counterparts and, when executed by each party, shall constitute an agreement binding on all parties notwithstanding that all parties are not signatories to the original or the same counterpart provided that all parties are furnished a copy or copies thereof reflecting the signature of all parties. Either party, or both, may execute and deliver this Lease by using electronic signature technology (e.g., DocuSign or other comparable electronic signature software). Transmission of a facsimile or by email of a.pdf copy of the signed counterpart of the Lease shall be deemed the equivalent of the delivery of a “wet ink” original, and any party so delivering a facsimile or.pdf copy of the signed counterpart of the Lease by email transmission shall in all events deliver to the other party an original signature promptly upon request.

  24.15	Joint and Several. If there is more than one Tenant, the obligations imposed upon Tenant under this Lease shall be joint and several.

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  24.16	Water Sensors. Tenant shall, at Tenant’s sole cost and expense, be responsible for promptly installing web‐enabled wireless water leak sensor devices designed to alert the Tenant on a twenty‐four (24) hour seven (7) day per week basis if a water leak is occurring in the Premises (which water sensor device(s) located in the Premises shall be referred to herein as “Water Sensors”). The Water Sensors shall be installed in any areas in the Premises where water is plumbed and utilized by Tenant (such as sinks, pipes, faucets, water heaters, coffee machines, ice machines, water dispensers and water fountains) (the “Sensor Areas”). Tenant shall, at Tenant’s sole cost and expense, pursuant to Article 9 of this Lease keep any Water Sensors located in the Premises (whether installed by Tenant or someone else) in good working order, repair and condition at all times during the Lease Term and comply with all of the other provisions of Article 9 of this Lease. Notwithstanding any provision to the contrary contained herein, Landlord has neither an obligation to monitor, repair or otherwise maintain the Water Sensors, nor an obligation to respond to any alerts it may receive from the Water Sensors or which may be generated from the Water Sensors. Upon the expiration of the Lease Term, or immediately following any earlier termination of this Lease, Landlord reserves the right to require Tenant, at Tenant’s sole cost and expense, to remove all Water Sensors installed by Tenant, and repair any damage caused by such removal; provided, however, if the Landlord does not require the Tenant to remove the Water Sensors as contemplated by the foregoing, then Tenant shall leave the Water Sensors in place together with all necessary user information such that the same may be used by a future occupant of the Premises (e.g., the Water Sensors shall be unblocked and ready for use by a third‐party). If Tenant is required to remove the Water Sensors pursuant to the foregoing and Tenant fails to complete such removal and/or fails to repair any damage caused by the removal of any Water Sensors, Landlord may do so and may charge the cost thereof to Tenant.

  24.17	Subdivision. Landlord reserves the right to subdivide all or a portion of the Building or Property. Tenant agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents needed to conform this Lease to the circumstances resulting from a subdivision and any all maps in connection therewith. Notwithstanding anything to the contrary set forth in this Lease, the separate ownership of any buildings and/or Common Areas by an entity other than Landlord shall not affect the calculation of Tenant’s Share of Expenses and Taxes.

  24.18	Light, Air and View. No diminution of light, air or view by any structure, whether or not erected by Landlord, shall entitle Tenant to any reduction of Rent, result in any liability of Landlord to Tenant, or in any other way affect this Lease or Tenant’s obligations hereunder.

  24.19	Building Name, Address and Signage. Subject to Tenant’s rights under Section 8.04, Landlord shall have the right at any time, to change the name and/or address of the Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Building as Landlord may, in Landlord’s sole discretion, desire.

  24.20	Transportation Management. Tenant shall fully comply with all present or future government‐mandated programs intended to manage parking, transportation or traffic, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation‐related committees or entities. Such programs may include, without limitation: (i) restrictions on the 

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  number of peak‐hour vehicle trips generated by Tenant; (ii) increased vehicle occupancy; (iii) implementation of an in‐house ridesharing program and an employee transportation coordinator; (iv) working with employees and any Building or area‐wide ridesharing program manager; (v) instituting employer‐sponsored incentives (financial or in‐kind) to encourage employees to rideshare; and (vi) using flexible work shifts for employees.

  24.21	Sustainability.

  24.21.1	Sustainable Building Operations.

  a.	This Building is or may become in the future certified under the Green Building Initiative’s Green GlobesTM for Continual Improvement of Existing Buildings (Green GlobesTM‐CIEB), the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system, or operated pursuant to Landlord’s sustainable building practices. Landlord’s sustainability practices address whole‐building operations and maintenance issues including chemical use; indoor air quality; energy efficiency; water efficiency; recycling programs; exterior maintenance programs; and systems upgrades to meet green building energy, water, Indoor Air Quality, and lighting performance standards. Notwithstanding the foregoing, Tenant shall not be required to comply with any Green Building Initiatives or other rating systems as set forth above until the Building is certified as such, and Tenant shall only be required to comply with such Green Building Initiatives with respect to any upgrades, alterations or improvements made by Tenant after the Building is certified as set forth above. In no event shall Tenant be required to make changes, improvements and/or other repairs or replacements to the Premises in order to make the Premises compliant with the above stated initiatives and rating systems. All construction and maintenance methods and procedures, material purchase, and disposal of waste must be in compliance with minimum standards and specifications, in addition to all applicable laws.

  b.	Tenant shall use proven energy and carbon reduction measures, including energy efficient bulbs in task lighting; use of lighting controls; daylighting measures to avoid over‐lighting interior spaces; closing shades on the south side of the Building to avoid over heating the space; turning off lights and equipment at the end of the work day; and purchasing, with respect to any new equipment that Tenant purchases for the Premises, ENERGY STAR® qualified equipment including but not limited to lighting, office equipment, commercial and residential quality kitchen equipment, vending and ice machines; purchasing products certified by the U.S. EPA’s Water Sense® program. Tenant shall not be required to replace any existing equipment used by Tenant as of the date of this Lease which Tenant intends to install in the Premises in order to comply with this provisions of this Section 24.22(b).

  24.21.2	Tenant covenants and agrees, at its sole cost and expense: (a) to comply with all present and future laws, orders and regulations of the Federal, State, county, municipal or other governing authorities, departments, commissions, agencies and boards regarding the collection, sorting, separation, and recycling of garbage, trash, rubbish and other refuse (collectively, “trash”); (b) to comply with Landlord’s recycling policy as part of Landlord’s sustainability practices where it may be more stringent than applicable law; (c) to sort and separate 

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  its trash and recycling into such categories as are provided by law or Landlord’s sustainability practices; (d) that each separately sorted category of trash and recycling shall be placed in separate receptacles as directed by Landlord; (e) that Landlord reserves the right to refuse to collect or accept from Tenant any waste that is not separated and sorted as required by law, and to require Tenant to arrange for such collection of Tenant’s sole cost and expense, utilizing a contractor satisfactory to Landlord; and (f) that Tenant shall pay all costs, expenses, fines, penalties or damages that may be imposed on Landlord or Tenant by reason of Tenant’s failure to comply with the provisions of this Section 24.21.2.

  Landlord and Tenant have executed this Lease in two or more counterparts as of the Effective Date of this Lease set forth above.

  LANDLORD:

   

  BOREN LOFTS OWNER (DE) LLC,

  a Delaware limited liability Company

   

   

  By: /s/ Brian Barriero	

  Name: Brian Barriero	

  Title: Vice President, Operations	

   

   

  By: /s/ Kristen E. Binck	

  Name: Kristen E. Binck	

  Title: Vice President	

   

   

   

  TENANT:

   

  ICOSAVAX, INC.,

  a Delaware corporation

   

   

  By: /s/ Adam Simpson	

  Name:	Adam Simpson

  Title:	Chief Executive Officer

   

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  |US-DOCS\129492181.2||EX-10.19

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

  Exhibit 10.19

    

   

   

   

  Non-Exclusive License Agreement

   

  between

   

  Icosavax, Inc.

   

  and

   

  University of Washington

   

  for

   

  Computationally Designed Nanoparticles and Flu Vaccines Based upon Such Designs

   

  uw comotion agreement ref. [***]

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***] 

  Page 1 of 33

   

  |US-DOCS\130755718.2||

  

   

  TABLE OF CONTENTS

   

  		
	Background
	1

	1. Definitions
	2

	2. License and Option Grant.................................................................................................................................... 6

	3. Section Reserved .........................................................................................................................                          8

	4. Applications and Patents
	 10

	5. Commercialization
	11

	6. Payments, Reimbursements, Reports, and Records
	12

	7. Infringement
	13

	8. Licensed Rights Validity
	15

	9. Termination
	15

	10. Release, Indemnification, and Insurance
	17

	11. Warranties
	19

	12. Damages
	20

	13. General Provisions
	20

	Exhibit A	27

	Exhibit B	29

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***] 

  Page 1 of 33

   

  |US-DOCS\130755718.2||

  

   

  NON-EXCLUSIVE LICENSE AGREEMENT

   

  This Non-Exclusive License Agreement (this “Agreement”), effective as of the date of last signature (the “Effective Date”), is made and entered into between the University of Washington, a public institution of higher education and an agency of the state of Washington, (“University”), and Icosavax, Inc., a for profit corporation under the laws of Delaware (“Company”). 

   

  BACKGROUND

   

  A.	Certain innovations relating to computationally designed two-component icosahedral protein nanoparticles; two-component tetrahedral protein nanoparticles; and methods of multivalent antigen presentation on designed protein nanomaterials were made in the University laboratory of Dr. David Baker, a faculty member in the Department of Biochemistry and an employee of the Howard Hughes Medical Institute (“HHMI”), with members of the Baker lab as co-inventors, including Dr. Neil King, as well as by Dr. Neil King as “Principal Investigator” in his own lab while  an employee and faculty member of University in the Department of Biochemistry.  Such other inventions (without involvement of HHMI or Dr. Baker) relating to nanoparticle vaccine candidates for the influenza virus were made via a collaboration by Dr. King working at University and the Vaccine Research Center at the National Institute of Allergy and Infectious Diseases of the National Institutes of Health (“NIH”).

   

  B.	HHMI assigned its rights in such innovations for which Dr. Baker is an inventor (identified as [***] [***] and [***] in Exhibit A “License Schedule” to this Agreement) to University, subject to the HHMI License (as defined herein).  University now solely owns certain intellectual property rights in innovations and co-owns certain intellectual property rights as listed in Exhibit A “License Schedule” to this Agreement.  University and the U.S. Department of Health and Human Services, as represented by the National Institute of Allergy and Infectious Diseases of the NIH, (herein collectively referred to as “NIH”) have executed an interinstitutional agreement, dated November 12, 2019, that authorizes University to assume sole responsibility for both the patent prosecution and licensing of co-owned patent applications [***] and [***].  Thus, University has the right to license to others certain rights to use and practice such intellectual property.  University is willing to grant those rights so that such innovations may be developed for use in the public interest.

   

  C.	The innovations licensed under this Agreement were funded in part by the Bill and Melinda Gates Foundation (“BMGF”) pursuant to those certain grant agreements between BMGF and University of Washington Foundation dated [***] entitled [***] and [***] entitled [***], as amended and pursuant to which University made certain global access commitments to BMGF.  

   

  D.	University and Company entered into the Exclusive License Agreement [***], such agreement effective as of June 29, 2018, as amended, and also entered into the License and Exclusive Option Agreement [***], as amended, (collectively "Other License Agreements"), pursuant to which University granted to Company a license under certain licensed know-how and certain licensed patents in certain fields of use (such terms defined in the Other License Agreements).

   

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***] 

  Page 1 of 33

   

  |US-DOCS\130755718.2||

  

   

  E.	Company desires to expand the scope of the licensed field and accordingly, Company desires that University grant it a non-exclusive license under such intellectual property rights for the Flu Field of Use (as defined herein), and University is willing to grant such a non-exclusive license for the Flu Field of Use, on the terms set forth in this Agreement.  

   

  AGREEMENT

   

  The Parties agree as follows:

   

  1.	Definitions

   

  “Acquisition” means (a) the sale by Company of all, or substantially all of, its assets in transaction to a Third Party at arm’s length, (b) the sale, transfer, or exchange by the shareholders, partners, or equity owners of Company of a majority interest in Company's outstanding stock in an arm’s length transaction to a Third Party, or (c) the merger of Company with a Third Party at arm’s length; provided, however, that in no event will (y) any bona fide equity financing for the primary purpose of raising capital for corporate purposes, or (z) any license, or any option to obtain a license, relating to all or substantially all of Company’s rights (whether such rights pertain to this Agreement or to Company’s rights more generally) that is granted to a Third Party (whether or not collaborative or partnership activities also will be conducted), be considered an Acquisition under this Agreement.  For the avoidance of doubt, the Parties agree that any license or option to obtain a license, as stipulated in (z) above, shall be considered a Sublicense if such license or option to obtain a license includes sublicensed rights under this Agreement.

   

  “Combination Product” means a product sold in a form containing a Licensed Product and at least one other product, component, or ingredient which could be sold separate and apart from the Licensed Product and which is not required for the function of the Licensed Product. 

   

  “Confidential Information” means any information or materials of a Party not generally known to the public, including any information comprised of those materials and Company’s business plans or reports.  Confidential Information does not include any information that: (a) is, or becomes, part of the public domain through no fault of receiving Party; (b) is known to receiving Party prior to the disclosure by the disclosing Party, as evidenced by documentation; (c) is publicly released as authorized under this Agreement by University, its employees or agents; (d) is subsequently obtained on a non-confidential basis by receiving Party from a Third Party who is authorized to have and disclose such information; or (e) is independently developed by receiving Party without reliance on any portion of the Confidential Information received from the disclosing Party and without any breach of this Agreement as evidenced by documentation.

   

  “Distributor” means a distributor, reseller or OEM to which a Licensed Party sells a Licensed Product for resale of Licensed Product by the Distributor, and where Distributor has no other rights with respect to the Licensed Rights other than to resell or otherwise distribute Licensed Products (including but not limited to integrated or bundled with other products or services), and for which resale or distribution such Licensed Party receives no further consideration (including but not limited to royalties and/or commissions) beyond the price for the initial sale of Licensed Product to the Distributor.

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 2 of 33

  |US-DOCS\130755718.2||

  

   

  “Event of Force Majeure” means an unforeseeable act that prevents or delays a Party from performing one or more of its duties under this Agreement and that is outside of the reasonable control of the affected Party.  An Event of Force Majeure includes acts of war or of nature, insurrection and riot, and labor strikes.  An Event of Force Majeure does not include a Party’s inability to obtain a Third Party’s consent to any act or omission, unless the inability was caused by a separate Event of Force Majeure.

   “Flu Field of Use” means prophylactic and/or therapeutic treatments for influenza.  

   

   “Improvements” means patentable inventions that (a) are owned by University after the Effective Date and not encumbered by third party rights that would prevent delivery to Company, (b) would require a license under the Licensed Rights to practice, (c) were developed in whole or in part in the laboratory of the Principal Investigator (including without limitation together with NIH), and identified to UW CoMotion as Improvements to  patents subject to  this license, and (d) do not include an HHMI employee as an inventor under the applicable patent law. 

   

  “Licensed Know-How” means University knowledge or intangible work that: (a) was developed in whole or in part in the laboratory of Principal Investigator (including without limitation together with NIH), (b) exists as of the Effective Date, (c) is relevant to utilizing any of the Licensed Patents, (d) is unpublished, (e) is not subject to patent or copyright protection, and (f) is not covered by Third Party rights that would prevent delivery to Company.

   

  “Licensed Party” mean Company or any of its Sublicensees.

  “Licensed Patents” means (a) the patents and patent applications listed in Exhibit A1.1 “Licensed Patents”, all (b) divisions, continuations, and claims in continuations‐in‐part that are entitled to claim priority to, or that share a common priority claim with, and are directed to subject matter specifically described in, any item listed on Exhibit A1.1 “Licensed Patents”; (c) claims of extensions, renewals, substitutes, re-examinations and re-issues of any of the items in (a) or (b) that are directed to subject matter specifically described in any items listed on Exhibit A1.1; and (d) claims of foreign counterparts of any of the items in (a), (b), or (c) that are directed to subject matter specifically described in any items listed on Exhibit A1.1, wherever and whenever filed. 

  “Licensed Product” means any method, process, composition, product, service, or component part thereof that would, but for the granting of the rights set forth in this Agreement, infringe a Valid Claim contained in the Licensed Patents.  

   

  “Licensed Rights” means all rights granted to Company under Article 2 “License Grant” of this Agreement.

   

   “Net Sales” means the gross amount received by a Licensed Party from Distributors, customers, end users and other Third Parties for sales, leases, and other dispositions of Licensed Products in the Flu Field of Use, less [***].  On sales of Licensed Products by made in other than an arm’s length transaction, the value of the Net Sales attributed to such transaction will be equal to the Net Sales that would have been received in an arm’s length transaction, based on sales of like quantity and quality of Licensed Products sold on or about the time of the transaction.  Net Sales does not include sale, lease, disposition or other transfer of Licensed Products among or between Company, Subsidiaries and Sublicensees for the purpose of subsequent resale to a Third Party, but does include subsequent resale to such Third Party.  For 

   

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  avoidance of doubt Net Sales are calculated on sales by a Licensed Party to Distributor, and not on the subsequent sale by Distributor.

   

  Net Sales of Combination Products will be calculated by multiplying actual Net Sales of such Combination Products by the fraction A/(A+B), where “A” is the Net Sales price of the Licensed Product if sold or performed separately, and “B” is the Net Sales price of the other product, component or ingredient in the Combination Product if sold separately.  If, on a country-by-country basis, the other product, component or ingredient in the Combination Product is not sold separately in said country, Net Sales for the purpose of determining running royalties of the Combination Product shall be calculated by multiplying actual Net Sales of the Combination Product by the fraction A/C where “A” is the Net Sales price of the Licensed Product, if sold separately, and “C” is the Net Sales price of the Combination Product.  If, on a country-by-country basis, neither the Licensed Product, nor the other product, component or ingredient in the Combination Product, is sold separately in said country, Net Sales for the purpose of determining running royalties of the Combination Product shall be determined in good faith by the Parties.  A Combination Product may include a Licensed Product and any separate product, component or ingredient or service developed by or in-licensed by a Licensed Party from a Third Party provided it is a Combination Product as defined in this Agreement.

   

  “New Patent Applications” means patents and patent applications which claim Improvements and that the Company elects under Section 2.4 “Improvements” to include in the Licensed Patents. 

   

   “Parties” means University and Company and “Party” means either University or Company. 

   

  “Patent Expenses” means all reasonable costs (including attorneys’ and application fees) incurred by University and/or NIH in accordance with this Agreement to apply for, prosecute and maintain Licensed Patents, including but not limited to the costs of interferences, oppositions, inter partes review and re-examinations.  Costs for interferences, oppositions, inter partes review, re-examinations and other complex and expensive patent-related proceedings will be incurred in consultation with Company, pursuant to the processes of Article 4 “Applications and Patents”.  Patent Expenses also include reimbursement for in-house costs to apply for, prosecute and maintain Licensed Patents; provided they are for activities that would otherwise have been performed by outside counsel at an equal or greater expense. 

   

  “Performance Milestone” means the milestone described in Section A2 “Performance Milestone” of attached Exhibit A “License Schedule”.

   

  “Performance Milestone Date” means the date by which the Performance Milestone is to be achieved as set forth in Section A2 “Performance Milestones” of attached Exhibit A “License Schedule”, as such date may be extended pursuant to Section 5.1 “Performance Milestone” or as otherwise agreed upon by the Parties.

   

  “Permitted Sublicense” means any arm’s length agreement with a Third-Party commercialization partner, manufacturer, contract research organization or contract researcher/developer with whom a Licensed Party contracts for commercialization, manufacture, research or development of Licensed Products on Licensed Party’s behalf, and where such Third Party has no other rights with respect to the Licensed Rights other than to manufacture, research and/or develop on behalf of Licensed Party.  

   

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  “Permitted Sublicensee” means a Third Party holding a Permitted Sublicense. 

  “Sales Report” means a report in substantially the form set forth in Exhibit B “Royalty Report Form”. 

  “Sublicense” means the grant by a Licensed Party to a Third Party of any license, option, first right to negotiate, or other right granted under the Licensed Rights, in whole or in part.  The grant of the right to resell to a Distributor and the grant of a license or other right to use a Licensed Product to an end-user, where the end user has no other rights with respect to the Licensed Rights other than to be an end user of the Licensed Product, will not be a Sublicense and will be treated solely under Net Sales.

   

  “Sublicensee” means a Third Party holding a Sublicense under the Licensed Rights. 

   

  “Sublicense Consideration” means all consideration, including but not limited to [***]; but [***].  For avoidance of doubt, consideration paid to Company by Sublicensees for the following shall not be deemed Sublicense Consideration: [***].  For clarity, University acknowledges and agrees that, if Company should enter into an agreement with a Third Party that includes a Sublicense as part, but not all, of the subject matter of such agreement, then the total non-royalty consideration paid to Company under such Third-Party agreement will not be deemed Sublicense Consideration merely because a Sublicense is granted (since only a portion of the consideration received is for the grant of the Sublicense).

   

  “Territory” means worldwide.

   

  “Third Party” means an individual or entity other than University and Company.

   

  “Valid Claim” means (a) a claim in an issued, unexpired United States or granted foreign patent included in the Licensed Patents that: (i) has not been held invalid, unpatentable, or unenforceable by a decision of a court or other governmental agency of competent jurisdiction and not subject to appeal (ii) has not been admitted to be invalid or unenforceable through reissue, inter partes review, disclaimer, or otherwise, (iii) has not been lost through an interference, reexamination, or reissue proceeding; or (b) a pending claim of a pending patent application included in the Licensed Patents.

   

   

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  Additional Definitions.  The following terms have the meanings set forth in the corresponding sections of this Agreement, as described below.

   

  		
	Defined Term
	Section

	“Accountants”
	6.5.1

	“Act”
	13.3.3

	“Agreement”
	Preamble

	“BMGF”
	Background

	“Claim”
	10.2

	“Company”
	Preamble

	“Dispute Notice”
	13.4

	“Effective Date”
	Preamble

	“HHMI”
	Background

	“HHMI Claims”
	10.2

	“HHMI Indemnitees”
	10.2

	“HHMI License”
	2.8

	“Indemnitee”
	10.2

	“Initial Notice Period”
	9.8

	“Other License Agreements”
	Background

	“Principal Investigator”
	Background

	“Sell-Off Period”
	9.6

	“Subsidiaries”
	2.7

	“University”
	Preamble

   

  2. 	License  Grant.  Subject to the terms and conditions of this Agreement:

   

  2.1	Patent License.  

   

  2.1.1	Non-exclusive license.  University hereby grants to Company a non-exclusive license under the Licensed Patents to make, have made on Company’s behalf, use, offer to sell, sell, offer to lease or lease, import, or otherwise offer to dispose of Licensed Products in the Territory in the Flu Field of Use.  Unless otherwise terminated under Article 9 “Termination”, the term of this non-exclusive patent license will begin on the Effective Date and will continue until the date on which all Valid Claims expire or are held invalid or unenforceable by a court of competent jurisdiction from which no appeal can be taken. To the extent applicable, such non-exclusive license is subject to rights of HHMI described in Section 2.8 “HHMI Research Use Rights.”

   

  2.2	Know-How License.  University hereby grants to Company a non-exclusive, worldwide license to use Licensed Know-How. Unless otherwise terminated under Article 9 “Termination”, the term of this license will begin on the Effective Date and will continue until all rights under Licensed Patents are terminated.

   

  2.3	Sublicense Rights.  Company has the right, exercisable during the term of this Agreement but only after achieving the Performance Milestone and if Company is also sublicensing other intellectual property rights owned or otherwise controlled by Company, with such other intellectual property required for 

   

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  commercialization of the Licensed Rights by Sublicensee, to Sublicense its Licensed Rights under this Agreement.  Company may not grant Sublicensees the right to enforce Licensed Rights.  Company will remain responsible for its obligations under this Agreement.  Except for Permitted Sublicensees, Company will ensure that the Sublicense agreement: (a) contains terms and conditions that require Sublicensee to comply with the terms and conditions of this Agreement applicable to Sublicensees, including a release substantially similar to that provided by Company in Section 10.1 “Company’s Release”; a warranty substantially similar to that provided by Company in Section 11.1 “Authority”; University disclaimers and exclusions of warranties under Sections 11.3 and 11.4 “No Known Infringement” and “Disclaimer”; and limitations of remedies and damages substantially similar to those provided by Company in Sections 12.1 “Remedy Limitation” and 12.2 “Damage Cap”; (b) specifically incorporates provisions of this Agreement regarding obligations pertaining to indemnification, use of names and insurance.  Each Sublicense agreement must also contain obligations, terms and conditions in favor of HHMI or the HHMI Indemnitees, as applicable, that are identical to those undertaken by Company in favor of HHMI or the HHMI Indemnitees, as applicable, under this Agreement and intended for the protection of the HHMI Indemnitees, including, without limitation, the obligations, terms and conditions regarding indemnification, insurance and HHMI’s third party beneficiary status.  Company will provide University with a copy of the executed Sublicense, excluding any Permitted Sublicense agreement, within [***] days after its execution.  Company will not enter into any Sublicense agreement if the terms of such agreement are inconsistent in any material respect with the material terms of this Agreement.  Any Sublicense made in violation of this Section 2.3 “Sublicense Rights” will be void and will constitute an event of default that requires remedy under Section 9.2 “Termination by University”.

   

  2.4	Improvements.  For a period of [***] months after the Effective Date, University will provide reasonable written notice to Company of any Improvements to the Licensed Patents.  Company will have the option, exercisable within [***] days of receipt of University’s notice of such Improvement, to add such Improvements to the Licensed Patents.  If Company exercises its option to add Improvements to the Licensed Patents, the Licensed Patents thereafter will include the applicable New Patent Applications, and the Parties will revise Exhibit A “License Schedule” to include such Improvements.

   

  2.5	Limitation of Rights.  No provision of this Agreement grants to Company, by implication, estoppel or otherwise, any rights other than the rights expressly granted it in this Agreement under the Licensed Rights, including any license rights under any other University-owned technology, copyright, know-how, patent applications, or patents, or any ownership rights in the Licensed Rights.

   

  2.6	The United States Government’s Rights.  Inventions covered in the Licensed Patents arose, in whole or in part, from federally supported research and the federal government of the United States of America has certain rights in and to such inventions as those rights are described in Chapter 18, Title 35 of the United States Code and accompanying regulations, including Part 401, Chapter 37 of the Code of Federal Regulation.  The Parties’ rights and obligations under this Agreement to any government-funded inventions, including the grant of license set forth in Section 2.1 “Patent License”, are subject to the applicable terms of the aforementioned United States laws.  The U.S. Government is entitled, as a right, under these Chapters: (a) to a non-exclusive, nontransferable, irrevocable, paid-up license to practice or have practiced for or on the behalf of the U.S. Government any of the federally funded inventions throughout the world and (b) to exercise march in rights on the federally funded inventions.  Company further agrees that, to the extent required by Title 35 Section 204 of the United States Code, it will substantially manufacture in the United States of America all products embodying or produced through 

   

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  the use of any such federally funded invention. If requested by the U.S. Government when necessary to fulfill health or safety needs, in each case to the extent required by Federal regulations, Company agrees to seek responsible sublicensees with respect to any government-funded inventions covered by this Section 2.6, on terms that are reasonable under the circumstances, for any territories that Company, its affiliates or licensees are not then exploiting such inventions or do not have plans to reasonably do so. 

   

   

  2.7	Rights to Wholly Owned Subsidiaries of Company.  Company may extend rights granted to Company under this Agreement to wholly owned subsidiaries (“Subsidiaries”) of Company, provided that (a) Company is responsible for all acts of such Subsidiaries as if they were acts of the Company, (b) such Subsidiary is bound in writing to perform all obligations to University and HHMI of this Agreement  other than making payments pursuant to Article 6 “Payments, Reimbursements, Reports, and Records”, as if such Subsidiary were Company, and (c) Company reports to University pursuant to Section 13.10 “Notices” that such Subsidiary will be exercising rights under this Agreement prior to such Subsidiary exercising any such rights under this Agreement.  For avoidance of doubt, Company may perform any obligation of Subsidiary on Subsidiary’s behalf.

   

  2.8	HHMI Research Use Rights.  Company acknowledges that it has been informed that the Licensed Patents were developed, at least in part, by employees of HHMI and that HHMI has a paid-up, non-exclusive, irrevocable worldwide license to exercise any intellectual property rights with respect to the Licensed Patents for research purposes, with the right to sublicense to non-profit and governmental entities, but with no other rights to assign or sublicense (the “HHMI License”).  This license is explicitly made subject to the HHMI License.

   

  3.	Section Reserved

   

  4. 	Applications and Patents

  4.1	Pre-Agreement Patent Filings.  Company has reviewed the Licensed Patents and as of the Effective Date is not aware of any basis to challenge or dispute the inventorship, validity, or enforceability of any of the claims made in the Licensed Patents. 

  4.2	Patent Prosecution Decisions.  University and Company will consult on the preparation, filing and prosecution of the Licensed Patents.  Patent counsel will be directed to deliver to Company all written and electronic communications to and from all patent offices and foreign counsel, and provide summaries of oral communications with patent offices.  Provided Company is in compliance with Section A3.6 “Patent Expense Payment” of Exhibit A “License Schedule”, Company’s directions regarding patent preparation, filing and prosecution will be reasonably considered, along with directions from any other licensees to the Licensed Patents, unless detrimental to University’s intellectual property rights.  University and Company will consult prior to deciding in which countries to pursue patent protection and provided Company is in compliance with Section A3.6 “Patent Expense Payment”, patents will be filed in all countries Company designates.  University will remain the client of record, and may at its own expense instruct patent counsel to take actions necessary to protect University’s intellectual property rights, if in University’s reasonable opinion, Company actions will result in a loss of rights; provided that for any such actions, if Company declines to reimburse University pursuant to Section A3.6 “Patent Expense Payment” of Exhibit A “License Schedule”, those applications and resultant patents will not be subject to this Agreement.  In no event will 

   

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  Company file a patent application where all of the inventors are under University or HHMI policy obligated to assign their rights in such patent application to University and/or HHMI. 

  5.	Commercialization

   

  5.1	Performance Milestone.  Company will, directly or through its Subsidiaries or Sublicensees, use its commercially reasonable efforts, consistent with sound and reasonable business practices and judgment, to commercialize the Licensed Rights and to make and sell Licensed Products as soon as practicable and to maximize sales thereof.  Company shall perform, or shall cause to happen or be performed, the Performance Milestone in accordance with the Performance Milestone Date.  

   

  5.2	Renegotiation of Performance Milestone.  If Company determines that it will be unable to achieve the Performance Milestone by the Performance Milestone Date, Company will so notify University in advance of the Performance Milestone Date, and, provided Company demonstrates it is diligently pursuing commercialization of at least one Licensed Product, Company shall have the option of negotiating in good faith an appropriate new Performance Milestone and/or related Performance Milestone Date to accommodate for the reasonable length of the delay. In addition, University agrees that the Performance Milestone Date shall be extended by the number of days of delay caused by any event reasonably deemed out of the control of Company, but such extension limited in duration to no longer than [***] year, including without limitation an Event of Force Majeure, the actions or inactions of any regulatory authority necessary for Company’s plans to commercialize the Licensed Rights, or inability to enroll clinical trials due to lack of eligible participants.  If the Parties are unable to agree on a renegotiated Performance Milestone [***], then University may proceed with its termination rights under Section 9.2 “Termination by University”, subject to both Company and University having the right to seek mediation under Section 13.4 “Escalation; Dispute Resolution”.

   

  5.3	Commercialization Reports.  Throughout the term of this Agreement and during the Sell-Off Period, and within thirty (30) days of December 31st of each year, Company will deliver to University written reports of Company’s and Sublicensees’ efforts and plans to develop and commercialize the innovations covered by the Licensed Rights and to make and sell Licensed Products.  Company will have no obligation to prepare commercialization reports in years where (a) Company delivers to University a written Sales Report with active sales, and (b) Company has fulfilled the Performance Milestone.  In relation to the Performance Milestone each commercialization report will include sufficient information to demonstrate efforts towards achievement of the Performance Milestone and will set out timeframes and plans for achieving the Performance Milestone which has not yet been met.  

  5.4	Company Information.  Throughout the term of this Agreement, Company shall provide the names of, and sufficient contact information to identify, any Permitted Sublicensees within [***] days of University’s written request.  

   6.	Payments, Reimbursements, Reports, and Records

  6.1	Payments.  Company will deliver to University the payments specified in Section A3 “Payments” of attached Exhibit A “License Schedule”.  Company will make such payments by check, wire transfer, or any other mutually agreed-upon and generally accepted method of payment.  All checks to University will be 

   

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  made payable to “University of Washington” and will be mailed to the address specified in Section 13.10 “Notices” and will reference the University agreement number [***]. 

   

  All wire or electronic fund transfers must be confirmed via email referencing the above agreement number to:  [***]

   

  Wire transfers: 						Electronic Fund Transfer (ACH):

  
[***]
 

  6.2	Currency and Checks.  All computations and payments made under this Agreement will be in United States dollars.  The exchange rate for the currency into dollars as reported in The Wall Street Journal as the New York foreign exchange mid-range rate on the last business day of the month in which the transaction was entered into will be used for determining the dollar value of transactions conducted in non-United States dollar currencies.

   

  6.3	Late Payments.  University may charge Company a late fee for all amounts owed to University that are more than [***] days overdue; provided that, for any portion of any such amount that is the subject of a bona fide, good faith dispute by Company (the mechanism of such dispute governed by Section 13.4 “Escalation; Dispute Resolution”), the late fee shall not apply to such disputed portion unless and until the dispute is decided in University’s favor.  The late fee will be computed as the [***], as set forth by The Wall Street Journal (Western edition) on the date on which the payment is due, of the outstanding, unpaid balance.  The payment of a late fee will not foreclose or limit University from exercising any other rights it may have as a consequence of the lateness of any payment.

   

  6.4	Sales Reports.  Within [***] days after the last day of each calendar quarter commencing with the calendar quarter after the Company effects its first commercial sale of a Licensed Product and during the term of this Agreement and the Sell-Off Period, Company will deliver to University the Sales Report setting forth the number of and Net Sales amount (expressed in U.S. dollars) of all sales, leases, or other dispositions of Licensed Products, whether made by Company or a Sublicensee, during such calendar quarter.  Included in each sales report will be the name of each Distributor, and the number and type of Licensed Product sold, leased, or otherwise provided to such Distributor.  After the first commercial sale of a Licensed Product in the Territory, Company will deliver a written Sales Report to University even if Company is not required hereunder to pay to University a royalty payment during the calendar quarter.  Company shall provide the names of Permitted Sublicensees within [***] days at University’s written request. 

   

  6.5	Books and Records.  Throughout the term of this Agreement and for [***] years after expiration or termination of this Agreement, Company, at its expense, will keep and maintain and shall cause each Sublicensee other than Permitted Sublicensees to keep and maintain complete and accurate records of all sales, leases, and other dispositions of Licensed Products and all other records related to this Agreement.  

   

  6.5.1	Audit Rights.  Company will permit at the request of University (not to be made more than once in any given calendar year), one or more independent, certified accountants selected by University and reasonably acceptable to Company (which acceptance shall not be 

   

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  unreasonably withheld or delayed) (“Accountants”) to have access to Company’s records and books of account pertaining to calculation of Net Sales and payment of any other amounts owed under this Agreement.  Accountants’ access will be during ordinary working hours to audit Company’s records for any payment period ending prior to such request, the correctness of any Sales Report or payment made under this Agreement, or to obtain information as to the payments due for any period in the case of failure of Company to report or make payment under the terms of this Agreement or to verify Company’s compliance with its payment obligations hereunder.  Accountants will sign Company’s standard non-disclosure agreement provided it is reasonable to the industry in which Company operates.  Company shall cause each Sublicensee, other than Permitted Sublicensees, that manufactures, sells, leases, or otherwise disposes of Licensed Products on behalf of Company to grant University the rights to inspect and audit Sublicensee’s records.

  6.5.2	Scope of Disclosure.  Accountants will not disclose to University any information relating to the business of Company except that which is necessary to inform University of: (a) the accuracy or inaccuracy of Company’s Sales Reports and payments; (b) compliance or noncompliance by Company with the terms and conditions of this Agreement; or (c) the extent of any inaccuracy or noncompliance.  A copy of the Accountants’ report will be provided to Company.

  6.5.3	Accountant Copies.  If Accountants believe there is an inaccuracy in any of Company’s payments or noncompliance by Company with any terms and conditions, Accountants will have the right to make and retain copies (including photocopies) of any pertinent portions of the records and books of account.

  6.5.4	Costs of Audit.  If Company’s payments calculated for any calendar quarter are under-reported by more than [***], then the costs of any audit and review initiated by University will be borne by Company; otherwise, University shall bear the costs of any audit initiated by University. 

  7.	Infringement

   

  7.1	Notice of Third Party’s Infringement.  If a Party learns of substantial, credible evidence that a Third Party is infringing the Licensed Rights, that Party will promptly deliver written notice of the possible infringement to the other Party, describing in detail all relevant information to which that Party has access or control suggesting infringement of the Licensed Rights.

   

  7.2	University’s Right to Enforce.  During the term of this Agreement, University in conjunction with its co-owner NIH has the right to respond to, defend, and prosecute in its own name, and at its own expense, actions or suits relating to the Licensed Rights.  University will keep Company reasonably informed of any matters relating to the defense or prosecution of actions or suits relating to the Licensed Rights.  

   

  7.6	No Obligation to Institute Action.  University is not obligated under this Agreement to institute or prosecute a suit against any alleged infringer of the Licensed Rights.

   

   

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  8.	Licensed Rights Validity

   

  8.1	Notice and Investigation of Third-Party Challenges.  If any Third Party challenges the validity or enforceability of any of the Licensed Rights, the Party having such information will immediately notify the other Party. 

   

  8.2	Third Party Actions.  In the event of a Third-Party legal action challenging the validity or enforceability of any Licensed Rights, University, in conjunction with its co-owner NIH,  in its sole discretion will have the right to assume and control the sole defense of the claim at University’s expense. University will keep Company reasonably informed of any matters relating to any Third-Party legal action challenging the validity or enforceability of the Licensed Rights, including any settlement discussions with respect thereto.  

   

  8.3	Enforceability of Licensed Rights.  Notwithstanding challenge by any Third Party, any Licensed Right will be enforceable under this Agreement until such Licensed Right is determined to be invalid. 

   

  9.	Termination

   

  9.1	End of Term.  This Agreement will expire, unless terminated earlier as provided in this Article 9 “Termination”, without further action by the Parties, when all Licensed Rights have terminated pursuant to Article 2 “License  Grant”, and all obligations due to University based on the exercise of such Licensed Rights have been fulfilled.  

  9.2	Termination by University.  If Company materially breaches or fails to perform one or more of its material duties under this Agreement, University may deliver to Company a written notice of default, which notice will (a) state that it is a notice of default, (b) state that University intends to terminate this Agreement if the default is not cured in [***] days, and (c) identify the material duty or duties to which such default relates.  Subject to Section 13.4 “Escalation; Dispute Resolution”, University may terminate this Agreement by delivering to Company a written notice of termination if the default has not been cured within [***] days of the delivery to Company of the notice of default; provided, however, if Company can reasonably demonstrate to University that it is proceeding diligently and in good faith to cure such default but cannot do so within such [***] day period, University will extend such cure period for another [***] day period, or such longer period approved by University.  In addition, University may terminate this Agreement in part pursuant to Section 5.2 “Renegotiation of Performance Milestone”.

   

  9.3	Events of Default.  University may terminate this Agreement by delivering to Company a written notice of termination at least [***] days prior to the date of termination if Company (i) permanently ceases operations; (ii) voluntarily files or has filed against it a petition under applicable bankruptcy or insolvency laws that Company fails to have released within [***] days after filing; (iii) proposes any dissolution, composition, or financial reorganization with creditors or if a receiver, trustee, custodian, or similar agent is appointed; (iv) makes a general assignment for the benefit of creditors; or (v) if Company challenges the validity of the Licensed Patents.

  9.4	Disputing Events of Default.  Notwithstanding the foregoing, if Company disputes that a default has occurred as contemplated above or that a default has not been cured, Company may use the dispute resolution mechanism outlined in Section 13.4 “Escalation; Dispute Resolution”.  

   

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  9.5	Termination by Company.  Company may terminate this Agreement at any time by delivering to University a written notice of termination at least [***] days prior to the effective date of termination.  In addition, Company may propose to terminate certain of its Licensed Rights hereunder by delivering to University a written notice of termination accompanied by a proposed written amendment to this Agreement at least [***] days prior to the effective date of termination of such Licensed Rights.  For clarity, such amendment will become effective upon execution of such amendment by University and Company and shall not be unreasonably withheld or delayed.

   

  9.6	Effect of Termination.  Upon termination of this Agreement, the Licensed Rights granted (including any and all rights granted under the Licensed Rights to Sublicensees including Permitted Sublicensees) will terminate.  However, no end-user rights shall terminate as a result of termination of this Agreement.  Company’s obligations that have accrued prior to the effective date of termination or expiration of this Agreement (including but not limited to the obligations under Article 6 “Payments, Reimbursements, Reports, and Records”) will survive termination of this Agreement.  Sublicenses will terminate unless converted into a direct license with University pursuant to Section 9.8 “Sublicenses After Termination”.  Notwithstanding any such termination of this Agreement, subject to being in compliance with Article 6 of this Agreement at the time of termination, and subject to ongoing compliance with obligations under Article 6 and Article 10 “Release, Indemnification, and Insurance”, Company and any Sublicensees and Distributors may sell or otherwise dispose of existing inventory of Licensed Products for a period of [***] days after the effective date of termination of this Agreement (“Sell-Off Period”), provided, however, that the terms of this Agreement shall apply to the Sell-Off Period as if this Agreement had not terminated.  Company will provide notification if Company, or any Sublicensees or Distributors, will be exercising their rights to continue selling inventory pursuant to the Sell-Off Period.

   

  9.7	Final Report to University.  Within [***] days after the end of the calendar quarter following either the expiration or termination of either this Agreement or the Sell-Off Period, whichever is later, Company will submit a final Sales Report to University.  Any payment obligations accrued prior to such termination or expiration, including those incurred but not yet paid, will become due and payable at the same time as this final Sales Report is due to University. 

   

  9.8	Sublicenses After Termination.  At any time within [***] days following termination of this Agreement, Sublicensee may notify University pursuant to Section 13.10 “Notices” that it wishes to enter into a direct license with University in order to retain its rights to the Licensed Rights granted to it under its Sublicense (such [***] day period following receipt of notice of termination, the “Initial Notice Period”).  Following University’s receipt of Sublicensee’s notice, University shall offer Sublicensee a license agreement the terms of which will be substantially similar to the terms of this Agreement; provided, however, that the offered scope of the direct license, licensed territory, and duration of the license grant will be the same as (not merely substantially similar to) the scope of the license, licensed territory and duration of the license granted under this Agreement (unless the rights granted by Company to Sublicensee were a subset of rights under this Agreement, in which case the scope of the direct license, licensed territory and duration of the license will be the same as the corresponding terms granted by Company to such Sublicensee).  For the sake of clarity, the financial terms, including without limitation, the running royalty rate, will be identical to the corresponding financial terms set forth in this Agreement.  Notwithstanding the foregoing, each Sublicensee’s right to enter into such direct license will be conditioned upon:

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 13 of 33

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  9.8.1	Written Notification to University.  Such Sublicensee informing University in writing, pursuant to Section 13.10 “Notices”, that it wishes to enter into such direct license with University, within the Initial Notice Period;

   

  9.8.2	Sublicensee in Good Standing.  Such Sublicensee being in good standing with Company under its Sublicense such that Sublicensee is not in material breach of the Sublicense;

   

  9.8.3	Valid Sublicense.  Such Sublicense having been validly entered into by Company and Sublicensee pursuant to the terms of Section 2.3 “Sublicense Rights”; 

   

  9.8.4	Sublicensee Certification that Conditions are Satisfied.  Such Sublicensee using reasonable efforts to certify or otherwise demonstrate that the conditions set forth in Subsections 9.8.1 “Written Notification to University”, 9.8.2 “Sublicensee In Good Standing”, and 9.8.3 “Valid Sublicense” have been met within [***] days of expiration of the Initial Notice Period (or within such longer period of time as University agrees is reasonable under the circumstances, based on the nature and extent of any documentation reasonably requested by University); and

   

  9.8.5	Time Limitations.  Unless mutually agreed by the Parties in writing, execution of a direct license with Sublicensee will be completed not later than [***] days from the end of the Initial Notice Period.

   

  Except as set forth in Subsection 9.8.5 “Time Limitations”, University may, at its sole discretion, waive any of the requirements in Subsections 9.8.1 through 9.8.4.  If all of the conditions set forth in this Section 9.8 “Sublicenses After Termination” are met, then Sublicensee will be granted such direct license by University.  If any condition set forth in this Section 9.8 “Sublicenses After Termination” is not met, then after expiration of any time period granted to Sublicensee with respect to meeting such condition (for example and to the extent applicable, the Initial Notice Period and/or the periods described in Subsections 9.8.4 “Sublicensee Certification that Conditions are Satisfied” and 9.8.5 “Time Limitations”), Sublicensee will not practice Licensed Rights except as provided for in Section 9.6 “Effect of Termination” and University will be free to license or not license Licensed Rights to such Sublicensee according to University’s sole discretion.

   

  10.	Release, Indemnification, and Insurance

  10.1	Company’s Release.  Company hereby releases University and its regents, officers, employees, and agents forever from any and all suits, actions, claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’ and investigative expenses) relating to or arising out of (a) the manufacture, use, lease, sale, or other disposition of a Licensed Product; or (b) the assigning or sublicensing of Company’s rights under this Agreement.

  10.2	Indemnification.  

  10.2.1  Company will indemnify, defend, and hold harmless University and its regents, officers, employees, and agents (each, an “Indemnitee”) from all Third Party suits, actions, claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’ and investigative expenses), based on University’s role in developing or licensing Licensed Rights and 

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 14 of 33

  |US-DOCS\130755718.2||

  

   

  relating to or arising out of Company’s or Sublicensees’ exercise of any rights with respect to Licensed Products, including, without limitation, personal injury, property damage, breach of contract and warranty and products-liability claims relating to a Licensed Product and claims brought by a Sublicensee (each, a “Claim”), provided that the Company will not have obligations to the extent resulting from the University’s or gross negligence or willful misconduct.  In the event of a Claim, the Indemnitee against whom a Claim is brought will: (a) give Company written notice of the Claim within a reasonable period of time after such Indemnitee receives notice thereof along with sufficient information for Company to identify the Claim; and (b) cooperate and provide such assistance (including, without limitation, testimony and access to documentation within the possession or control of such Indemnitee) as Company may reasonably request in connection with Company's defense, settlement and satisfaction of the Claim.  Company will pay or reimburse all costs and expenses reasonably incurred by such Indemnitee to provide any such cooperation and assistance.  Any settlement that would admit liability on the part of University or that would involve any relief other than the payment of monetary damages will be subject to the approval of University, such approval not to be unreasonably withheld.  

   

  10.2.2  HHMI, and its trustees, officers, employees, and agents (collectively, “HHMI Indemnitees”), will be indemnified, defended by counsel acceptable to HHMI, and held harmless by Company from and against any claim, liability, cost, expense, damage, deficiency, loss, or obligation, of any kind or nature (including, without limitation, reasonable attorneys’ fees and other costs and expenses of defense) (collectively, “HHMI Claims”), based upon, arising out of, or otherwise relating to this Agreement or any Sublicense, including without limitation any cause of action relating to product liability.  The previous sentence will not apply to any HHMI Claim that is determined with finality by a court of competent jurisdiction to result solely from the gross negligence or willful misconduct of an HHMI Indemnitee.  Notwithstanding any other provision of this Agreement, Company’s obligation to defend, indemnify and hold harmless the HHMI Indemnitees under this paragraph will not be subject to any limitation or exclusion of liability or damages or otherwise limited in any way.  

   

  10.3	Company’s Insurance.

  10.3.1	General Insurance Requirement.  Throughout the term of this Agreement, or during such period as the Parties will agree in writing, Company will maintain in full force and effect commercial general liability (CGL) insurance and product liability insurance, with single claim limits at an amount customary to Company’s business for activities and/or products of a similar nature.  Such insurance policy will include coverage for claims that may be asserted by University or HHMI against Company under Section 10.2 “Indemnification”.  The insurance coverage and limits required by this section are not a limitation on Company's liability or obligation to indemnify or defend University or HHMI or their respective Indemnitees. Such insurance policy will name the Board of Regents of the University of Washington and HHMI as an additional insured and will require the insurer to deliver written notice to University a t the address set forth in Section 13.10 “Notices”, at least [***] days prior to the termination of the policy.  Company will deliver to University a copy of the certificate of insurance for such policy.  

  10.3.2	Clinical Trial Liability Insurance.  Within [***] days prior to the initiation of human clinical trials with respect to Licensed Product(s), Company will provide to University certificates 

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 15 of 33

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  evidencing the existence and amount of clinical trials liability insurance.  Company will issue irrevocable instructions to its insurance agent and to the issuing insurance company to notify University of any discontinuance or lapse of such insurance not less than [***] days prior to the time that any such discontinuance is due to become effective.  Company will provide University a copy of such instructions upon their transmittal to the insurance agent and issuing insurance company.  Company will further provide University, at least annually, proof of continued coverage.

  11.	Warranties

   

  11.1	Authority.  Each Party represents and warrants to the other Party that it has full power and authority to execute, deliver, and perform this Agreement, and that no other proceedings by such Party are necessary to authorize the Party’s execution or delivery of this Agreement. 

   

  11.2	Documents.  University represents and warrants that: all University personnel, including employees, students, consultants and contractors, who University is aware as of Effective Date have contributed to the Licensed Patents as of Effective Date have either (a) been party to a for-hire relationship with University that affords University sufficient ownership of all Licensed Patents to provide this license of University’s rights to Company, or (b) executed assignment documents in favor of University as prescribed either by University policies or by agreement with HHMI to provide University sufficient ownership of the Licensed Patents to provide this license of University’s rights to Company.  

   

  11.3 	No Known Infringement.  As of the Effective Date, to the best of University’s CoMotion office’s knowledge, (a) no claim has been made or is threatened charging University with infringement of, or claiming that the Licensed Rights infringe any Third Party rights; and (b) no proceedings have been instituted, or are pending or threatened, which challenge the University’s rights in respect to the Licensed Patents or other Licensed Rights.

   

  11.4	Disclaimer.  EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN SECTIONS 11.1 “AUTHORITY”, 11.2 “DOCUMENTS”, AND 11.3 “NO KNOWN INFRINGEMENT” UNIVERSITY DISCLAIMS AND EXCLUDES ALL WARRANTIES, EXPRESS AND IMPLIED, CONCERNING EACH LICENSED RIGHT AND EACH LICENSED PRODUCT, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF NON-INFRINGEMENT AND THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  University innovation has been developed as part of research conducted at University. University innovation is experimental in nature and is made available “AS IS,” without obligation by University to provide accompanying services or support except as specified in this Agreement.  The entire risk as to the quality and performance of University innovation is with Company.  

   

  11.5	Intellectual Property Disclaimers.  University expressly disclaims any warranties concerning and makes no representations: (a) that the Licensed Patent(s) will be approved or will issue; (b) concerning the validity or scope of any Licensed Right; or (c) that the practice of Licensed Rights, or the manufacture, use, sale, lease or other disposition of a Licensed Product will not infringe or violate a Third Party’s patent, copyright, or other intellectual property right.

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 16 of 33

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  12.	Damages

   

  12.1	Remedy Limitation.  EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, (A) IN NO EVENT WILL UNIVERSITY BE LIABLE FOR PERSONAL INJURY OR PROPERTY DAMAGES ARISING IN CONNECTION WITH THE ACTIVITIES CONTEMPLATED IN THIS AGREEMENT AND (B) IN NO EVENT WILL EITHER PARTY BE LIABLE FOR LOST PROFITS, LOST BUSINESS OPPORTUNITY, INVENTORY LOSS, WORK STOPPAGE, LOST DATA OR ANY OTHER RELIANCE OR EXPECTANCY, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, OF ANY KIND. FOR THE AVOIDANCE OF DOUBT, IN NO EVENT WILL COMPANY BE LIABLE FOR PERSONAL INJURY OR PROPERTY DAMAGES ARISING IN CONNECTION WITH THE ACTIVITIES OF ANY THIRD PARTY LICENSEE OF UNIVERSITY UNDER ANY AND ALL LICENSES GRANTED BY UNIVERSITY to SUCH Third Party under the Licensed Patents to make, have made on SUCH THIRD PARTY’S behalf, use, offer to sell, sell, offer to lease or lease, import, or otherwise offer to dispose of Licensed Products in the Territory in the Flu Field of Use. 

   

  12.2	Damage Cap.  IN NO EVENT WILL UNIVERSITY’S TOTAL LIABILITY FOR THE BREACH OR NONPERFORMANCE OF THIS AGREEMENT EXCEED [***] OF PAYMENTS PAID TO UNIVERSITY UNDER ARTICLE 6 “PAYMENTS, REIMBURSEMENTS, REPORTS, AND RECORDS”.  THIS LIMITATION WILL APPLY TO CONTRACT, TORT, AND ANY OTHER CLAIM OF WHATEVER NATURE.

   

  13.	General Provisions

   

  13.1	Amendment and Waiver.  This Agreement may be amended from time to time only by a written instrument signed by the Parties.  No term or provision of this Agreement will be waived, and no breach excused, unless such waiver or consent is in writing and signed by the Party claimed to have waived or consented.  No waiver of a breach will be deemed to be a waiver of a different or subsequent breach.

   

  13.2	Assignment.  The rights and licenses granted by University in this Agreement are personal to Company and Company will not assign its interest or delegate its duties under this Agreement without the written consent of University, which consent will not to be unreasonably withheld or delayed; any such assignment or delegation made without written consent of University will not release Company from its obligations under this Agreement.  Notwithstanding the foregoing, Company, without the prior approval of University, may assign all, but no less than all, of its rights and delegate all, but no less than all, of its duties under this Agreement to a Third Party provided that: (a) the assignment is made to such Third Party as a part of and in connection with an Acquisition, (b) Company obtains from such Third Party written agreement to honor all obligations under this Agreement accrued by Company before Acquisition and all obligations under this Agreement to accrue by such Third Party assignee after Acquisition, and (c) Company provides written notice to University of the Acquisition, together with a substitution of parties document or copy of the assignment confirming compliance with (b) above, no later than [***] days after the close of the Acquisition.  Any assignment made in violation of this Section 13.2 is void and will constitute an act of breach that requires remedy under Section 9.2 “Termination by University”.  This Agreement will inure to the benefit of Company and University and their respective permitted assignees and trustees. 

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 17 of 33

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  13.3	Confidentiality. 

   

  13.3.1	Form of Transfer.  Confidential Information may be conveyed in tangible or intangible form. Disclosing Party must clearly mark its Confidential Information “confidential”.  If disclosing Party communicates Confidential Information in non-written form, it will reduce such communications to writing, clearly mark it “confidential”, and provide a copy to receiving Party within [***] days of original communication at the address in Section 13.10 “Notices”.  Any business information delivered by Company as required under this Agreement shall be deemed marked “confidential”, whether or not such confidential marking appears. 

   

  13.3.2	No Unauthorized Disclosure of Confidential Information.  Beginning on the Effective Date and continuing throughout the term of this Agreement and thereafter for a period of [***] years, receiving Party will not disclose or otherwise make known or available to any Third Party any disclosing Party Confidential Information, without the express prior written consent of disclosing Party.  Notwithstanding the foregoing, receiving Party will be permitted to disclose Confidential Information of disclosing Party to (i) actual or potential investors, lenders, consultants, advisors, collaborators, Sublicensees, or development partners, which disclosure will be made under conditions of confidentiality and limited use and (ii) its attorney or agent as reasonably required and (iii) to employees and trustees of HHMI to fulfill University’s obligations to HHMI or who have a need to know.  In no event will receiving Party incorporate or otherwise use disclosing Party’s Confidential Information in connection with any patent application filed by or on behalf of receiving Party.  Receiving Party will restrict the use of disclosing Party’s Confidential Information to uses exclusively in accordance with the terms of this Agreement.  Receiving Party will use reasonable procedures to safeguard disclosing Party’s Confidential Information.  In the case where Company is the receiving Party, Company’s confidentiality obligations will also apply equally to Sublicensees. 

   

  13.3.3	Access to University Information.  University is an agency of the state of Washington and is subject to the Washington Public Records Act, RCW 42.56 et seq., (“Act”), and no obligation assumed by University under this Agreement will be deemed to be inconsistent with University’s obligations as defined under the Act and as interpreted by University in its sole discretion.  If University receives a request for public records under the Act for documents containing Company Confidential Information, and if University concludes that the documents are not otherwise exempt from public disclosure, University will provide Company notice of the request before releasing such documents.  Such notice will be provided in a timely manner to afford Company sufficient time to review such documents and/or seek a protective order, at Company’s expense utilizing the procedures described in RCW 42.56.540.  University will have no other obligation to protect Company Confidential Information from disclosure in response to a request for public records. 

   

  13.3.4	Disclosure as Required by Law.  Either Party will have the right to disclose the other Party’s Confidential Information as required by law or valid court order, provided that such Party will inform the Party who owns such Confidential Information prior to such disclosure, will cooperate with the owner Party’s efforts to limit or avoid disclosure, and will limit the scope and recipient of disclosure to that required by such law or court order.

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 18 of 33

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  13.4	Escalation; Dispute Resolution.  If (i) Company disputes that a default has occurred as contemplated in Section 9.2 “Termination by University”, or that a default has not been cured, or (ii) Company wishes to dispute termination of this Agreement resulting from a failed renegotiation of a new Performance Milestone as contemplated under Section 5.2 “Renegotiation of Performance Milestone”, or (iii) Company disputes in good faith any amounts that are owed to University under this Agreement, and a late fee for such disputed amount has been charged to Company under Section 6.3 “Late Payments”, then Company may provide University with a written dispute notice (“Dispute Notice”).  In the case of (i) and (ii) above such Dispute Notice must be received by University prior to expiration of the [***]-day cure period referenced in Section 9.2 “Termination by University”, stating the basis of Company's disagreement with respect to such default or cure.  In the case of (iii) above such Dispute Notice must be received by University within [***] days of being charged a late fee for such disputed amount.  If Company disputes that a default has occurred as contemplated in Section 9.3 “Events of Default”, then Company may provide University with a Dispute Notice within [***] days of University sending the notice of termination referenced in Section 9.3 “Events of Default”.  Upon receipt of a Dispute Notice, University's right to terminate this Agreement or demand payment of late fees will be suspended and all rights under this Agreement will continue unaffected provided the dispute resolution process in this Section 13.4 “Escalation; Dispute Resolution” is being exercised.  Any dispute will first be escalated to Company's Chief Executive Officer or to a representative from Company's Board of Directors, and to University's Vice President for Innovation Strategy, representatives of which will be instructed to work in good faith to attempt to reach a mutually acceptable resolution of the dispute that would avoid termination of this Agreement.  If the representatives are unable to reach such resolution of the dispute within thirty (30) days of delivery of the Dispute Notice, an independent, neutral mediator acceptable to both Parties (acting reasonably) will be appointed.  The Parties will submit their dispute to mediation according to such parameters as they may mutually agree in writing.  The Parties agree to discuss their differences in good faith and to attempt in good faith, with facilitation by the mediator, to reach an amicable resolution of the dispute within [***] days after the mediator's appointment.  If the Parties are not able to agree on resolution of the dispute within such period, or within [***] days of the Dispute Notice, whichever is earlier, including agreeing on a new Performance Milestone pursuant to Section 5.2 “Renegotiation of Performance Milestone” if that is the subject of the dispute, then the dispute resolution process of this Section 13.4 “Escalation; Dispute Resolution” will be complete and either Party may pursue any other action that is legally available to it.  Notwithstanding the foregoing, no dispute affecting the rights or property of HHMI shall be subject to the dispute resolutions provisions set forth above.  

   

  13.5	Consent and Approvals.  Except as otherwise expressly provided in this Agreement, all consents or approvals required under the terms of this Agreement must be in writing and will not be unreasonably withheld or delayed.

   

  13.6	Construction.  The headings preceding and labeling the sections of this Agreement are for the purpose of identification only and will not in any event be employed or used for the purpose of construction or interpretation of any portion of this Agreement.  As used herein and where necessary, the singular includes the plural and vice versa, and masculine, feminine, and neuter expressions are interchangeable, and the word “including” shall mean “including, without limitation.”

   

  13.7	Enforceability.  If a court of competent jurisdiction adjudges a provision of this Agreement unenforceable, invalid, or void, such determination will not impair the enforceability of any of the remaining provisions hereof and the provisions will remain in full force and effect.

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 19 of 33

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  13.8	Third-Party Beneficiaries.  Except as identified in Section 13.22 “Express Third-Party Beneficiary”, no provision of this Agreement, express or implied, confers upon any person other than the Parties to this Agreement, HHMI and Sublicensees (Sublicensees solely for purposes of enforcing Sections 9.8 “Sublicenses After Termination” and 13.22) any rights, remedies, obligations, or liabilities hereunder.  No Sublicensee will have a right to enforce or seek damages under this Agreement other than as set forth in Section 13.22.  The Parties agree that no amendment or modification to Section 9.8 or Section 13.22.2 shall apply to a Sublicensee without the prior written consent of that Sublicensee, if such amendment occurs after the date of execution of the applicable Sublicense.  

   

  13.9	Language.  Unless otherwise expressly provided in this Agreement, all notices, reports, and other documents and instruments that a Party elects or is required by the terms of this Agreement to deliver to the other Party will be in English.

   

  13.10	Notices.  All notices, requests, and other communications that a Party is required or elects to deliver will be in writing and will be delivered personally, or by facsimile or electronic mail (provided such delivery is confirmed), or by a recognized overnight courier service or by United States mail, first-class, certified or registered, postage prepaid, return receipt requested, to the other Party at its address set forth below or to another address as a Party may designate by notice given under this Section 13.10:

   

  		
	If to University:
	UW CoMotion 
[***]

	 
	 

	If to Company:
	Icosavax, Inc.
[***]

  13.11	Proprietary Markings and Provision of Inert Sample Licensed Product.  To the extent commercially feasible, Company will mark all material forms of Licensed Products or packaging pertaining thereto made and sold by Company in the United States with patent marking conforming to 35 U.S.C. §287(a), as amended from time to time.  All Licensed Product(s) shipped to or sold in other countries will be marked in such a manner as to provide notice to potential infringers pursuant to the patent law and practice of the country of manufacture or sale.  In addition, Company agrees upon request to supply to UW and its co-owner NIH, inert samples of the Licensed Products being offered for sale, or their packaging, for educational and display purposes only.

  13.12	Use of Names.

  13.12.1   No provision of this Agreement grants Company or Sublicensee any right or license to use the name or trademarks of University or the names or identities of any member of the faculty (provided that Dr. Baker is subject to Subsection 13.12.2), staff, or student body of University.  Except as provided herein, Company will not use, and will not permit a Sublicensee to use, any such trademarks, names, or identities without University’s and, as the case may be, such member’s prior written approval. Notwithstanding the foregoing, Company and University may provide factual information regarding the existence of this Agreement.  

  13.12.2  Company acknowledges that under HHMI policy, Company may not use the name of HHMI or of any HHMI employee (including Dr. Baker) in a manner that reasonably could constitute an endorsement of a commercial product or service; but that use for other purposes, even if commercially 

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 20 of 33

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  motivated, is permitted provided that (1) the use is limited to accurately reporting factual events or occurrences, and (2) any reference to the name of HHMI or any HHMI employees in press releases or similar materials intended for public release is approved by HHMI in advance.

   

  13.13	Publicity.  In accordance with Section 13.12, University will have the right to report in its customary publications and presentations that University and Company have entered into a license agreement for the technology covered by the Licensed Rights and University may use Company logos in such publications and presentations provided that University does not modify Company’s logos and does not through such use imply any endorsement by Company of University.  The Parties will cooperate with one another to review and respond to any press release or similar communication proposed by the other Party regarding the non-confidential subject matter of this Agreement.  The specific content and timing of such press releases or similar communication is subject to mutual agreement by the Parties, which will not be unreasonably withheld.  

   

  13.14	Relationship of Parties.  In entering into, and performing their duties under, this Agreement, the Parties are acting as independent contractors and independent employers.  No provision of this Agreement will create or be construed as creating a partnership, joint venture, or agency relationship between the Parties.  No Party will have the authority to act for or bind the other Party in any respect.

   

  13.15	Relationship with Principal Investigator(s).  

  13.15.1 Company acknowledges that Principal Investigator is employed by University and has certain pre-existing obligations to University, including obligations with respect to disclosure and ownership of intellectual property and obligations arising from sponsored research agreements between University and Third Parties.  Accordingly, Company agrees that to the extent that any consulting agreement between Company and Principal Investigator is inconsistent with any of Principal Investigator’s obligations to University, including the reporting of all inventions developed while employed by University (regardless of where arising) and including contractual obligations arising under any sponsored research agreements between University and Third Parties, then Principal Investigator’s obligations to University will prevail and to such extent any inconsistent provisions of such consulting agreement will be deemed inapplicable and unenforceable. 

  13.15.2  Company acknowledges that Dr. Baker, an inventor on certain of the Licensed Patents, is employed by HHMI, as well as a member of the faculty of University, and has certain pre-existing obligations to HHMI and University, including obligations with respect to disclosure and ownership of intellectual property and obligations arising from sponsored research agreements between University and Third Parties.  Accordingly, Company agrees that to the extent that any consulting agreement between Company and Dr. Baker is inconsistent with any of his obligations to HHMI and/or University, including the reporting of all inventions developed while employed by HHMI (regardless of where arising) or contractual obligations arising under any sponsored research agreements between University and Third Parties, Dr. Baker’s obligations to HHMI and/or University will prevail and to such extent any inconsistent provisions of such consulting agreement will be deemed inapplicable and unenforceable.

  13.16	Security Interest.  In no event will Company grant, or permit any person to assert or perfect, a security interest in the Licensed Rights; however, Company may grant or permit a security interest in the Company’s rights under this Agreement.

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 21 of 33

  |US-DOCS\130755718.2||

  

   

  13.17	Survival.  The obligations specified in Article 6 “Payments, Reimbursements, Reports, and Records” will survive termination of this Agreement provided Reports will not be required for any period in which there are no Net Sales other than the final report due under Section 9.7 “Final Report to University”.  Article 1 “Definitions” and the obligations and rights set forth in Section 2.8 “HHMI Research Use Rights”, Section 5.3 “Commercialization Reports” (as applicable to any Sell-Off Period), Article 9 “Termination”, Article 10 “Release, Indemnification, and Insurance”, Article 11 “Warranties”, Article 12 “Damages”, Section 13.3 “Confidentiality”, Section 13.4 “Escalation; Dispute Resolution”, but only with respect to any disputes arising before the effective date of termination or expiration), Section 13.17 “Survival”, Section 13.19 “Applicable Law”, Section 13.20 “Forum Selection”, Section 13.21 “Entire Agreement”, and Section 13.22 “Express Third-Party Beneficiary” will survive the termination or expiration of this Agreement.

  13.18	Collection Costs and Attorneys’ Fees.  If a Party fails to perform an obligation or otherwise breaches one or more of the terms of this Agreement, the other Party may recover from the non-performing breaching Party all its costs (including actual attorneys’ and investigative fees) to enforce the terms of this Agreement.

   

  13.19	Applicable Law.  The internal laws of the state of Washington will govern the validity, construction, and enforceability of this Agreement, without giving effect to the conflict of laws principles thereof.

   

  13.20	Forum Selection.  Any suit, claim, or other action to enforce the terms of this Agreement will be brought exclusively in the state and federal courts of King County, Washington.  Company hereby submits to the jurisdiction of that court and waives any objections it may have to that court asserting jurisdiction over Company or its assets and property.

   

  13.21	Entire Agreement.  This Agreement (including all attachments, exhibits, and amendments) is the final and complete understanding between the Parties concerning licensing of the Licensed Rights in the Flu Field of Use and this Agreement supersedes any and all prior or contemporaneous negotiations, representations, and agreements, whether written or oral, concerning the Licensed Rights in the Flu Field of Use, the Parties acknowledging that the Other License Agreements memorialize the final and complete understanding of the Parties regarding its subject matter, including the distinct Fields of Use.  Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement will limit, alter or amend any of the rights granted by University to Company pursuant to the Other License Agreements.  Confidential Information disclosed under this Agreement will be governed by the terms of this Agreement.  This Agreement may not be modified in any manner, except by written agreement signed by an authorized representative of both Parties.

   

  13.22	Express Third-Party Beneficiary.  

  	 

  13.22.1	HHMI is not a party to this Agreement and has no liability to Company, any Sublicensee, or user of anything covered by this Agreement, but HHMI is an intended third-party beneficiary of this Agreement and certain of its provisions are for the benefit of HHMI and are enforceable by HHMI in its own name.

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 22 of 33

  |US-DOCS\130755718.2||

  

   

  	13.22.2	Notwithstanding anything to the contrary in this Agreement, each Sublicensee is an intended third-party beneficiary of this Agreement, but solely for purposes of enforcing Section 9.8 “Sublicenses After Termination” in its own name.

   

  13.23	Counterparts.  This Agreement may be executed in counterparts, each of which (including signature pages) will be deemed an original, but all of which together will constitute one and the same instrument.  A facsimile, scanned, or photocopied signature (and any signature duplicated in another similar manner) identical to the original will be considered an original signature.

   

  IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized representatives.

   

  					
	University of Washington
	 
	Icosavax, Inc.

	 
By:
	/s/ Dennis A. Hanson
	 
	By:
	/s/ Adam K. Simpson

	 
Name:
	Dennis A. Hanson
	 
	Name:
	Adam K. Simpson 

	Title:
	Associate Director, Innovation Development
	 
	Title:
	Chief Executive Officer

	 
Date:
	9/16/2021
	 
	Date:
	9/16/2021

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 23 of 33

  |US-DOCS\130755718.2||

  

   

  Exhibit A

  License Schedule

  A1.	Licensed Rights:

  A1.1	Licensed Patents:

  						
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  A2.	Performance Milestone (Section 5.1 “Performance Milestone”): Subject to any extension pursuant to Section 5.2 “Renegotiation of Performance Milestone” of the Agreement, and Company’s right to renegotiation of Performance Milestone and/or Performance Milestone Date, Company will perform, or shall cause to happen or be performed, the following Performance Milestone:

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 24 of 33

  |US-DOCS\130755718.2||

  

   

  		
	 
	Performance Milestone and Performance Milestone Date in the Flu Field of Use

	 
	 

	A2.1 Performance Milestone
	Company shall have initiated (first person dosed) a first in human clinical trial for a Licensed Product in the Flu Field of Use by [***]

   

  A3.	Payments (Section 6.1):

  A3.1	Upfront License Fee.  Company shall pay to University within thirty (30) days of the Effective Date US [***] as an upfront license fee.  This upfront license fee shall be non-refundable and not creditable against future payment obligations.

  A3.2	Minimum Annual Fees.  Company will pay minimum annual fees for the term of this Agreement to be creditable against running royalty payments for the preceding calendar year on a non-cumulative basis and to be due in full and payable on January 31st of each year beginning on January 31st following the second anniversary of the Effective Date and continuing during the term of this Agreement according to the following schedule: 
 

  		
	Calendar Year
	Minimum Annual Fee

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  A3.2.1	If this Agreement is terminated prior to the payment of a minimum annual fee in any given year the amount due for that minimum annual fee payment will be prorated on the basis of the number of full quarters that have elapsed prior to termination since the last payment of a minimum annual fee.

  A3.3	Running Royalty Payments.  Company will pay to University within [***] days after the last day of each calendar quarter during the term of this Agreement an amount equal to [***] of Net Sales in the Flu Field of Use during such quarter as a running royalty payment.

  A3.3.1	Stacking or Third-Party Royalty.  If a Licensed Party is required to pay royalties to a Third Party based on such Licensed Party’s manufacture, use, offer for sale, sale or import of Licensed Product, subject to one or more patents of such Third Party, then the royalty Company pays to University may be reduced by [***] of the royalty actually paid to the Third Party; provided that [***] 

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 25 of 33

  |US-DOCS\130755718.2||

  

   

  of Licensed Product, and provided that the royalty amount paid to the University shall not fall below [***] of Net Sales.

  A3.3.2	Only One Royalty.  Company will not be required to pay duplicate royalties on Net Sales of any Licensed Product under this Agreement if Company is required to pay royalties on such Net Sales under the Other License Agreements, but shall still report and account for Net Sales of Licensed Product under this Agreement in a Sales Report as stipulated in section 6.4.  By way of example, and without limitation, if Net Sales include sales of a product that includes a product that is subject to the Other License Agreements and a Licensed Product that is subject to this Agreement, then the royalty rate with respect to such combination product will be [***] of Net Sales, subject to any modifications for Third Party royalties as set forth in Sections A3.2.1 (of this Agreement and the Other License Agreements).

  A 3.4	Sublicense Consideration.  Within [***] days of the end of each calendar quarter during the term of this Agreement, Company will pay to University [***] of any Sublicense Consideration received by Company during such calendar quarter unless reduced by achievement of defined milestones by Company or its Sublicensees prior to execution of the particular Sublicense in accordance with the schedule below.  A further reduction of the percentage of Sublicense Consideration payable to University under this Agreement will be negotiated in good faith between the Parties where, in addition to the Sublicense of any rights granted to Company hereunder, Company or its Sublicensee also grants a Sublicensee a license or sublicense under a Third Party’s intellectual property rights that are or would be infringed by Licensed Product(s) (treating pending patent applications as if they were issued patents), but only to the extent that the total aggregate consideration for such combined license is treated as Sublicense Consideration.

    

  			
	  
	Milestone Has Been Achieved at the Date of Execution of the Sublicense 
	Sublicense 
Consideration 
Percentage 

	A3.4.1 
 
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	A3.4.2 
 
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  A3.5	Financial Milestones. Company will pay to University the following non-cumulative, non-creditable, and non-refundable milestone achievement payments within [***] days of achieving the corresponding milestone, whether achieved by Company or a Sublicensee:
 

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 26 of 33

  |US-DOCS\130755718.2||

  

   

  		
	 
	Milestone

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  A3.6	Patent Expense Payment.  Company will pay, or reimburse University for paying, all Patent Expenses on a pro rata basis with any other licensees of Licensed Patents, incurred before, on or after the Effective Date, within [***] days of its receipt of University’s invoice for such Patent Expenses. University reserves the right to request advance payments for certain Patent Expenses, at University’s discretion. 

  A3.6.1	Notwithstanding Sections 4.2 and 4.3 of this Agreement, if at any time Company is not fully reimbursing University for Patent Expenses, or fails to provide advance payment when requested, University shall make patent filing, prosecution, and maintenance decisions, including choosing in which countries to prosecute patents, in its sole discretion and Company shall have no rights to provide instruction or to take over patent prosecution.  University shall reasonably consider input provided by Company, but have no obligation to act on such input.

   

   

   

  Icosavax Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 27 of 33

  |US-DOCS\130755718.2||

  

   

  Exhibit B

  [***]

   

   

  Icosavax, Inc. / University of Washington

  Non-Exclusive License Agreement

  UW CoMotion Ref. [***]  

  Page 28 of 33

  |US-DOCS\130755718.2||

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