Exhibit 10.3
FIRST LEASE EXTENSION
AGREEMENT
Building #7, Suite H
1430 O’Brien Drive
Menlo Park, California 94025
THIS LEASE EXTENSION AGREEMENT (this
“Agreement”) is made and entered into on March 18,
2008 by and between MENLO BUSINESS PARK, LLC, a California limited
liability company (“Lessor”), and DEPOMED, INC., a
California corporation (“Lessee”).
RECITALS
A.
Lessor and Lessee entered into a
Lease dated July 28, 2006 (the “Lease”) of the
premises referred to as Building #7, Suite H, located at 1430
O’Brien Drive, Menlo Park, California 94025, more
particularly described on Exhibit “A” attached to
the Lease and incorporated by reference herein (the
“Premises”). The Premises contain approximately
9,255 rentable square feet of space.
B.
The expiration date of the initial
term of the Lease is June 30, 2009. Lessor and
Lessee wish to extend the expiration date of the initial term of
the Lease, subject to the terms and conditions set forth
herein.
AGREEMENT
NOW THEREFORE, in consideration of
the mutual covenants contained herein, the parties agree as
follows:
1.
Defined Terms
. Terms defined in the Lease
and used in this Agreement shall have the meaning ascribed to them
in the Lease.
2.
Extension of Initial
Term .
(a)
The term of the Lease is hereby
extended for a period of thirty-one (31) calendar months commencing
on July 1, 2009 and ending on January 31,
2012 (the “First Extension Term”). The First
Extension Term shall be upon all of the same terms and conditions
of the Lease, except that the Monthly Base Rent payable by Lessee
to Lessor during the First Extension Term shall be as set forth in
Paragraph 3 hereof.
(b)
The option to extend provided for in
Paragraph 3 of the Lease shall be for one (1) period of sixty
(60) calendar months immediately following the expiration of the
First Extension Term and shall otherwise be upon the same terms and
conditions as set forth in Paragraph 3 of the Lease.
3.
Monthly Base Rent
. Lessee shall pay to Lessor
Monthly Base Rent during the First Extension Term, in monthly
installments in advance on a triple net basis in lawful money of
the United States, as follows:
(a)
Commencing on July 1,
2009 , and continuing through June 30, 2010 , the
sum of Twenty Thousand Eight Hundred Twenty-Three and Seventy-Five
Hundredths Dollars ($20,823.75) per month ($2.25/square
foot/NNN).
(b)
Commencing on July 1,
2010 (the “Rental Adjustment Date”), on each
anniversary date of the commencement the Monthly Base Rent shall be
adjusted to reflect any increases in the cost of living. The
adjustment shall be calculated upon the basis of the United States
Department of Labor, Bureau of Labor Statistics Consumer Price
Index, all items, for all Urban Consumers - San
Francisco-Oakland-San Jose (1982-84=100), hereafter referred to as
the “Index.” The Index for said subgroup
published most recently as of the end of the calendar month
immediately preceding the month in which the commencement date of
the Extension Term occurs shall be considered the “Base
Index.”
(c)
The Monthly Base Rent shall be
adjusted as of the Rental Adjustment Date to an amount equal to the
product obtained by multiplying the Monthly Base Rent for the
Premises commencing on July 1, 2010 referred to in
Paragraph 3(a) above), by a fraction, the numerator of which
is the Index most recently published as of the end of the calendar
month immediately preceding the Rental Adjustment Date and the
denominator of which is the base Index; provided that in no event
shall the Monthly Base Rent be increased on the Rental Adjustment
Date to an amount less than three percent (3%) per annum or more
than six
