Avanir
Pharmaceuticals, Inc.
as Sublandlord
Halozyme,
Inc.
as Subtenant
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11408 Sorrento
Valley Road
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San Diego,
California 92121
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This Sublease Agreement (this
“ Sublease ”) is made as of this 21st day of
April, 2009 (the “ Effective Date ”), by and
between Avanir
Pharmaceuticals, Inc. , a Delaware corporation (“
Sublandlord ”) and Halozyme, Inc. , a California
corporation (“ Subtenant ”), a subsidiary of
Halozyme Therapeutics,
Inc. , a Delaware corporation (“ Parent
”), with Sublandlord and Subtenant hereinafter sometimes
referred to collectively as the “ Parties ” and
individually as a “ Party ”).
Whereas , Sorrento Plaza, a
California limited partnership (“ Master Landlord
”) and Sublandlord, are parties to a certain Standard
Industrial Net Lease, dated as of May 20, 2002, as amended by
that certain First Amendment to Standard Industrial Net Lease,
dated as of August 1, 2002, and as amended by that certain
Second Amendment to Standard Industrial Net Lease, dated as of
April 2, 2003 (collectively, the “ Master Lease
”), a copy of which is attached hereto as
Exhibit A ;
Whereas , pursuant to the terms of
the Master Lease, Master Landlord has leased to Sublandlord,
certain premises consisting of approximately 30,370 rentable square
feet (the “ Master Lease Premises ”) and which
are located in an office industrial center with a street address of
11404 and 11408 Sorrento Valley Road, San Diego, California 92121
(collectively, the “ Center ”);
Whereas , the Center is part of an
office industrial center (the “ Campus ”) which
includes 11388 Sorrento Valley Road, San Diego, California
92121.
(Initially
capitalized terms not otherwise defined in this Sublease shall have
the meanings attributed to such terms in the Master Lease, and
unless otherwise expressly provided herein, all references in this
Sublease to “Section” shall refer to the respective
“Section” of the Master Lease and all references to
“Paragraph” in this Sublease shall refer to the
respective “Paragraph” of this Sublease.)
Whereas , Sublandlord now desires
to sublease to Subtenant and Subtenant now desires to sublease from
Sublandlord a portion of the Master Lease Premises consisting of
the entirety of the building located at 11408 Sorrento Valley Road
(the “ Sublease Premises ”), on the terms,
covenants and conditions hereinafter provided; and
Now, Therefore , Sublandlord and
Subtenant covenant and agree as follows:
1.
Summary and
Definitions . The following definitions apply in this
Sublease:
(a)
Base Rent . Base Rent shall be as follows:
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Period During
Sublease Term
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Monthly Base Rent
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Annual Base Rent
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Sublease
Commencement Date (estimated to be January 15, 2010), through
and including January 14, 2011
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$2.25 per sq.
foot per month or $20,670.75
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$248,049.00
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January 15, 2011 through and including
January 14, 2012
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$2.32 per sq.
foot per month or $21,313.84
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$255,766.08
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January 15, 2012 through and including
January 14, 2013
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$2.39 per sq.
foot per month or $21,956.93
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$263,483.16
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(b)
Improvement Allowance . Seventy Five Thousand Dollars
($75,000.00) (the “ Allowance ”).
(c)
Sublease Premises . A portion of the Master Lease
Premises constituting approximately 9,187 Rentable Square Feet
constituting the entire building located at 11408 Sorrento Valley
Road, San Diego, California 92121 (the “ Building
”).
(d)
Term . The term of this Sublease (“ Sublease
Term ”) shall commence on the later of the following two
occurrences: (1) the date upon which Subtenant shall have
obtained the consent of Master Landlord to this Sublease, which
shall be diligently prosecuted (the “ Landlord Consent
”), or (2) January 15, 2010 (“ Sublease
Commencement Date ”). The Sublease Term shall expire on
January 14, 2013, or such earlier date on which this Sublease may
be terminated in accordance with the provisions hereof or the
provisions of the Master Lease, as incorporated herein (“
Sublease Expiration Date ”), in which case Sublandlord
shall promptly provide Subtenant with prior written notice of such
termination.
(e)
Early Access/Sirion Premises .
(i) Sublandlord
acknowledges that a portion of the Subleased Premises containing
approximately eight thousand five hundred eighty-seven (8,587)
Rentable Square Feet (the “ Sirion Premises ”)
is currently leased to Sirion Therapeutics, Inc. (“
Sirion ”) pursuant to that certain Sublease Agreement
dated as of September 5, 2006, and entered into by and between
Sublandlord and Sirion (the “ Sirion Sublease ”)
which expires by its terms on September 4, 2009 (the “
Sirion Sublease Expiration Date ”). For the period
beginning on February 27, 2009, and continuing through the
Sirion Sublease Expiration Date, Subtenant has had, and shall have,
the right to access the approximately six hundred
(600) Rentable Square Foot portion of the Subleased Premises
that is not leased to Sirion under the Sirion Sublease (the “
Storage Space ”) for the purposes set forth and
subject to the terms and conditions of that certain Alterations
Agreement dated February 24, 2009. As full consideration for
such early access to the Storage Space through the Sirion Sublease
Expiration Date, Subtenant shall pay to Sublandlord a one time
payment of Three Thousand Dollars ($3,000.00) promptly following
Subtenant’s execution hereof. For the avoidance of doubt,
Subtenant shall not be obligated to pay to Sublandlord any
Operating Costs, Real Estate Taxes and Utilities pursuant to
Paragraph 8 in connection with Subtenant’s use of the
Storage Space prior to September 5, 2009.
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(ii) Sublandlord
acknowledges that Subtenant also currently subsubleases and
occupies an approximately two thousand seven hundred (2,700)
Rentable Square Foot portion of the Sirion Premises (the “
Sub-Sublease Premises ”) pursuant to that certain
Sub-Sublease Agreement dated as of January 27, 2009 and
entered into by and between Subtenant and Sirion. Subtenant shall
have the right, commencing as of September 5, 2009 and
continuing through the Sublease Commencement Date, to continue to
use and occupy the Sub-Sublease Premises and the Storage Space for
any purpose permitted under the Master Lease; provided, however,
that any such use and occupancy shall be subject to
Subtenant’s obligations herein. In consideration for such
access to, and use and occupancy of, the Sub-Sublease Premises and
the Storage Space from September 5, 2009 through the Sublease
Commencement Date, Subtenant shall pay to Sublandlord a base rent
equal to Seven Thousand Four Hundred Twenty-Five Dollars
($7,425.00) per month, prorated for any partial months. For the
avoidance of doubt, Subtenant shall be obligated to pay to
Sublandlord all Operating Costs, Real Estate Taxes and Utilities
pursuant to and in accordance with Paragraph 8 in connection
with Subtenant’s use and occupancy of the Sub-Sublease
Premises and the Storage Space from September 5, 2009 through
the Sublease Commencement Date.
(iii) In
addition to the right of early access to, and use and occupancy of,
the Sub-Sublease Premises pursuant to Paragraph 1(e)(ii)
above, Subtenant also shall have the right, commencing as of
September 5, 2009 (or such later date upon which Sirion
vacates the Sirion Premises in conformity with the requirements of
the Sirion Sublease) and continuing through the Sublease
Commencement Date, to use and occupy all or any portion of the
remainder of the Sirion Premises for any purpose permitted under
the Master Lease; provided, however, that any such use and
occupancy shall be subject to Subtenant’s obligations herein.
For the avoidance of doubt, at such time as Subtenant commences to
use and occupy all or any portion of the Sirion Premises for
business purposes (as opposed to pre-occupancy construction
activities) Subtenant shall be obligated to pay to Sublandlord
Operating Costs, Real Estate Taxes and Utilities pursuant to and in
accordance with Paragraph 8 allocable to the occupied portion
of the Sirion Premises, but shall not be obligated to pay any
additional base rent or other consideration therefore until the
Sublease Commencement Date.
2.
Sublease .
Sublandlord hereby subleases to Subtenant, and Subtenant hereby
subleases from Sublandlord, the Sublease Premises, together with
all appurtenances thereto as provided in the Master Lease, for the
Sublease Term and on the terms and conditions contained in this
Sublease. Subtenant’s sublease of the Sublease Premises is
subject to the terms and conditions of the Master Lease as
incorporated herein and further subject to the terms and conditions
of this Sublease.
3.
Condition of Sublease
Premises .
(a) In
entering into this Sublease, Subtenant acknowledges that, except as
expressly set forth in this Sublease, Subtenant has not relied upon
or been induced by any statements or representations of Sublandlord
or any other parties or persons with respect to the physical
condition of the Sublease Premises or with respect to any other
matter affecting the Sublease Premises, that might be pertinent in
considering the leasing of the Sublease Premises or the execution
of this Sublease. Subtenant has, on the contrary and except as
expressly set forth in this Sublease, relied solely on such
investigations, examinations and inspections as
Subtenant
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has chosen to
make or have made on its behalf. Upon taking possession of any
portion of the Sublease Premises, Subtenant shall be deemed to have
accepted such portion of the Sublease Premises in its then
“as-is” “where-is” condition, except for
Sublandlord’s remediation obligations set forth in
Paragraph 3 of this Sublease.
(b) Sublandlord
represents and warrants that, to the best of its knowledge, the
Sublease Premises presently complies with all laws, codes,
ordinances and other governmental requirements applicable to the
Sublease Premises. Sublandlord is not presently aware of any reason
why, upon the occurrence of the Sublease Commencement Date, the
Sublease Premises will not continue to comply with all laws, codes,
ordinances and other governmental requirements then applicable to
the Sublease Premises. Further, Sublandlord is not presently aware
of any material defects in the Sublease Premises which will
unreasonably interfere with the normal use and enjoyment of the
Sublease Premises by any occupant thereof.
(c) By
taking possession of any portion of the Sublease Premises,
Subtenant shall conclusively evidence that such portion of the
Sublease Premises are fully completed and are suitable for
Subtenant’s purposes, that such portion of the Building and
such portion of the Sublease Premises are in good and satisfactory
condition, and that Subtenant waives any defect therein.
(d) Sublandlord
shall complete an Exit Assessment as described in Section 14.8
of the Master Lease and shall obtain any required regulatory
certification of the Sublease Premises promptly following the
expiration or earlier termination of the Sirion Sublease but in any
event no later than October 1, 2009, unless waived in writing
by Subtenant.
4.
Base Rent . During
the Sublease Term, Subtenant shall pay Sublandlord, as rent for the
Sublease Premises, the Base Rent as set forth in
Paragraph 1 of this Sublease, without set-off or
deduction whatsoever, except as otherwise provided herein. Base
Rent shall be due and payable by Subtenant in immediately available
funds, in advance on or before the first day of each calendar month
without notice or demand.
5.
Additional Rent .
In addition to the Base Rent under Paragraph 4 above as
well as the additional payment obligations set forth in
Paragraph 1(e), any and all charges, expenses or other sums
Subtenant is required to pay under the terms of this Sublease,
including, without limitation, any additional rent required under
the Master Lease, shall be deemed additional rent (“
Additional Rent ,” and together with Base Rent,
“ Subtenant’s Rent ”) and shall be paid by
Subtenant. Sublandlord shall have the same rights and remedies with
respect to payment of Additional Rent as Sublandlord shall have
with respect to the Base Rent. Subtenant shall remain responsible
for Subtenant’s Rent and any other charges, expenses or other
sums which first arise, accrue or are invoiced at any time during
or after the expiration of the Sublease Term, whether by
Sublandlord or Master Landlord, to the extent they arise or accrue
with respect to any period during the Sublease Term from any
liabilities or obligations of Subtenant under the provisions of
this Sublease (including any obligations under the Master Lease
which are incorporated herein as liabilities or obligations of
Subtenant). Except as expressly set forth in Section 1(e) above,
Subtenant shall not be required to pay any Additional Rent, or to
perform any obligation that is (i) allocable to any period of
time prior to the Sublease Commencement Date or following the
expiration or sooner termination of the Sublease (for any reason
other than
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Subtenant’s default), (ii) allocable
to any portion of the Master Premises other than the Sublease
Premises, (iii) payable as a result of a default by
Sublandlord of any of its obligations under the Master Lease, or as
a result of the gross negligence or willful misconduct of
Sublandlord or any of its agents, employees or contractors, or
(iv) are incurred for the sole and exclusive benefit of
Sublandlord.
(a) Subtenant’s
Rent and all other charges, expenses or other sums Subtenant is
required to pay to Sublandlord hereunder shall be due and payable
without billing or demand, and without deduction, set-off or
counterclaim, except as otherwise provided herein, in lawful money
of the United States of America, at Sublandlord’s address for
notices in Paragraph 15 hereof or to such other person
or at such other place as Sublandlord may designate in writing, and
shall be due and payable by Subtenant to Sublandlord on or before
the date specified in this Sublease, provided that if no date is
specified as to the applicable payment, then on or before
(i) three (3) business days prior to the corresponding
date provided in the Master Lease for payment of the same by
Sublandlord to Master Landlord (provided that in no event shall
such period be shortened to a duration of less than two
(2) business days) or (ii) if there is no corresponding
date provided in the Master Lease for payment of the same by
Sublandlord to Master Landlord, then ten (10) business days
after written request from Sublandlord to Subtenant. The failure of
Subtenant to make payment in full of Subtenant’s Rent or any
other charges, expenses or other sums Subtenant is required to pay
to Sublandlord hereunder by the due date provided herein for such
payment, shall potentially subject Subtenant to the obligation to
pay to Sublandlord interest in accordance with the provisions of
Paragraph 18 .
(b) If
the Sublease Term commences on a day other than the first day of a
calendar month or ends on a day other than the last day of a
calendar month, then Subtenant’s Rent for the first and last
fractional months of the Sublease Term shall be appropriately
prorated.
(c) Sublandlord
may upon reasonable prior written notice (which notice shall
include Master Landlord’s address and Master Landlord’s
acknowledgement of such notice) instruct Subtenant to make any
payment of Subtenant’s Rent directly to Master Landlord, in
which event Subtenant shall timely make all such payments so
instructed directly to Master Landlord (with a copy of the check to
be contemporaneously forwarded by Subtenant to Sublandlord at the
time of making of each such payment), and in such event Sublandlord
shall have no responsibility to Subtenant for the payment of any
such amount, and Subtenant shall be solely responsible for any
interest or late charges that may be imposed as a result of any
failure of Subtenant to have timely and properly made any such
payment to Master Landlord. Any payment made directly by Subtenant
to Master Landlord at the request of Sublandlord shall be credited
against any of Subtenant’s Rent due under this Sublease as
and when received by Master Landlord.
7.
Use . Subtenant
shall use and occupy the Sublease Premises only for the purposes
permitted under, and in a manner consistent with, the provisions of
the Master Lease. Subtenant will pay for any damage to any part of
the Sublease Premises, Building or Center, subject to any
applicable waiver of subrogation provisions, if (i) caused by
any act or omission by Subtenant or Subtenant’s employees,
agent, licensees, contractors or invitees and (ii) Sublandlord
is required
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to pay for such
damage under the Master Lease. Subtenant will comply with
applicable provisions of the Master Lease and the Center’s
Rules and Regulations.
8.
Operating Costs, Real Estate
Taxes and Utilities .
(a) Commencing
on the Sublease Commencement Date, Subtenant shall pay
Subtenant’s Pro Rata Share (as defined below) of Operating
Costs (as defined in the Master Lease), Real Property Taxes (as
defined in the Master Lease), and insurance costs incurred by
Sublandlord under the Master Lease. As used herein, “
Subtenant’s Pro Rata Share ” means a fraction,
the numerator of which is the Rentable Square Footage of the
Sublease Premises and the denominator of which is the Rentable
Square Footage of the Master Lease Premises. Subtenant’s Pro
Rata Share shall be computed by Sublandlord on a monthly or other
periodic basis selected by Sublandlord. As of the Commencement
Date, Subtenant’s Pro Rata Share shall be thirty and
twenty-five one-hundredths percent (30.25%). Subtenant’s
shall pay the amount of such Pro Rata Share within ten
(10) business days after receipt of a statement from
Sublandlord. Subtenant agrees that fire system certification for
the Sublease Premises will be an Operating Cost.
(b) Sublandlord
may incur actual, third-party, out-of-pocket costs and expenses
related to the operation of the Center or Campus, as more
specifically described on Exhibit F attached
hereto (collectively, “ Additional Operating Costs
”). Subtenant shall be responsible for reimbursing
Sublandlord for Subtenant’s prorate share of such Additional
Operating Costs as provided below. Subtenant’s pro rata share
of Additional Operating Costs shall be one hundred percent (100%)
with respect to Additional Operating Costs that are incurred by
Sublandlord for the sole benefit of the Sublease Premises. To the
extent that the Additional Operating Costs are not for the sole
benefit of the Sublease Premises and benefit or are related to the
Campus and/or Center as a whole, then Subtenant’s pro rata
share of the Additional Operating costs shall represent the ratio
of the Rentable Square Footage of the Sublease Premises to the
Rentable Square Footage of the Campus and/or the Center, as
applicable; provided, however, that in no event shall Subtenant
have any obligation to reimburse Sublandlord under this Sublease
for any Additional Operating Costs that are incurred for the sole
benefit of premises other than those located at 11408 Sorrento
Valley Road. Subtenant shall pay the amount of such pro rata share
within ten (10) business days after receipt of a statement
from Sublandlord along with reasonable documentary evidence of
Sublandlord’s payment of such costs. Subtenant shall bear
such Additional Operating Costs commencing on the Sublease
Commencement Date. The Additional Operating Costs shall be included
in the defined term Subtenant’s Rent.
(c) To
the extent not separately metered or monitored with respect to the
Sublease Premises, Sublandlord shall use commercially reasonable
efforts to provide those utilities set forth in
Exhibit D attached hereto (as provided in the
Sublease Premises, the “ Utilities ”). Subtenant
shall be responsible for its Pro Rata Share of Sublandlord’s
cost of those Utilities in accordance with
Paragraph 8(a) above. Sublandlord shall in no way be
liable or responsible for any loss, damage or expense the Subtenant
may sustain or incur by reason of any change, failure,
interruption, interference or defect in the supply or character of
the electricity or other Utilities supplied to the Sublease
Premises. Sublandlord makes no representation or warranty as the
suitability of the Utility service for Subtenant’s
requirements, and no such
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change,
failure, defect, unavailability or unsuitability shall constitute
any actual or constructive eviction, in whole or in part, or
entitle Subtenant to any abatement or diminution of rent, or
relieve Subtenant of any of its obligations under this Sublease.
Sublandlord shall not be liable in damages or otherwise for any
failure or interruption of any Utility service, and no such failure
or interruption shall entitle Subtenant to terminate this Sublease
or abate the rent due hereunder.
9.
Status of Master
Lease .
(a) Sublandlord
and Subtenant confirm and agree that this Sublease is subject and
subordinate to all of the terms, covenants and conditions of the
Master Lease and to the matters to which the Master Lease shall be
subordinate. Without limiting the generality of the foregoing, in
the event of termination of Sublandlord’s interest under the
Master Lease for any reason (including, without limitation, upon
the occurrence of any casualty or condemnation pertaining to the
Sublease Premises) this Sublease shall terminate coincidentally
therewith and Sublandlord shall return to Subtenant any prepaid
Subtenant’s Rent not applied to a default of Subtenant within
twenty (20) days of such termination.
(b) Sublandlord
represents to Subtenant that the Master Lease represents that
entire agreement between Master Landlord and Sublandlord respecting
the subject matter thereof, is in full force and effect, and, that
to Sublandlord’s knowledge, no default or event that, with
the passing of time or the giving of notice or both, would
constitute a default, exists on the part of Sublandlord, or, to
Sublandlord’s knowledge, the Master Landlord. Sublandlord
agrees to perform all of its obligations under the Master Lease
and, except for a termination of the Master Lease in connection
with a casualty or condemnation pursuant to Sublandlord’s
express rights as set forth therein, to maintain the Master Lease
in full force and effect, except to the extent that any failure to
maintain the Master Lease is due to the failure of Subtenant to
comply with any of its obligations under this Sublease. Sublandlord
shall not amend or modify the Master Lease in such a manner as to
materially adversely affect Subtenant’s use of the Subleased
Premises or increase the obligations or decrease the rights of
Subtenant hereunder, without the prior written consent of
Subtenant, which may be granted or withheld at Subtenant’s
sole discretion.
(c) If
Sublandlord fails to pay any sum of money to Master Landlord, or
fails to perform any other act on its part to be performed under
the Master Lease or this Sublease, then Subtenant may, but shall
not be obligated to, make such payment or perform such act. All
such sums paid, and all reasonable costs and expenses of performing
any such act, shall be payable by Sublandlord to Subtenant upon
demand.
(d) In
the event that Subtenant desires to make any alterations or
improvements, or otherwise take any action that will require the
consent of Master Landlord, then Subtenant shall process such
consent with the Master Landlord. Sublandlord shall cooperate, at
no cost or expense to Sublandlord in connection with Subtenant
obtaining such consent of Master Landlord.
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10.
Incorporation of Master Lease
Terms .
(a) The
applicable terms, covenants and conditions contained in the Master
Lease are hereby incorporated herein and shall, as between
Sublandlord and Subtenant, constitute additional terms, covenants
and conditions of this Sublease, except to the extent set forth
below. Except as provided in this Paragraph 10 , all
references in the Master Lease to “Landlord,”
“Tenant,” “Lease,” “Premises,”
“Commencement Date” and “Rent” shall, for
purposes of incorporation thereof into this Sublease, mean and
refer to “Sublandlord,” “Subtenant,”
“Sublease,” “Sublease Premises,”
“Sublease Commencement Date” and
“Subtenant’s Rent,” respectively. Subtenant
agrees to be bound by the provisions of the Master Lease
incorporated herein and to keep, observe and perform for the
benefit of the Master Landlord and Sublandlord each off the terms,
covenants and conditions on its part to be kept, observed and
performed hereunder as well as those applicable terms, covenants
and conditions to be observed and performed by Sublandlord as
Tenant under the Master Lease with respect to the Sublease
Premises. Without limiting the foregoing, Subtenant shall not
commit or permit to be committed on the Sublease Premises any act
or omission which shall violate any term, covenant or condition of
the Master Lease. Subtenant shall under no circumstances have any
rights with respect to the Sublease Premises greater than
Sublandlord’s rights under the Master Lease.
(b) In
the event of conflict between any provision of the Master Lease
which is incorporated herein as described above in this
Paragraph 10 and any provision of this Sublease, the
provisions of this Sublease shall control.
(c) The
following Sections and provisions of the Mater Lease do not apply
to, shall not be a part of, and are not incorporated into this
Sublease.
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Specific Section
Excluded
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Section
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Subject Matter
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(if not entire
Section)
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Basic Lease
Terms
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1.1, 1.2, 1.3,
1.4, 1.5, 1.6, 1.7, 1.9, 1.10
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The
Premises
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Lease
Term
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Rent
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Section 4.1 (Minimum Monthly
Rent)
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Security
Deposit
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Operating
Expenses
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6.1, 6.2,
6.5
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Real Property
Taxes
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8.1,
8.2
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Damage and
Destruction
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Condemnation
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Assignment and
Subletting
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18.2(c)
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Surrender
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20.4
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Default by
Tenant
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Section 21(d)(v)
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Default by
Landlord
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23.3(a)
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General
Provisions
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24.6
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8
Exhibits B
“ Rules and Regulations ” and C “
Sign Criteria ” to the Master Lease shall be
incorporated into this Sublease but all other exhibits and
references thereto as well as the First Amendment and Second
Amendment shall be excluded.
(d) References
in the following sections of the Master Lease to
“Landlord” shall be deemed to refer to Master Landlord
only: 7.2, 9.1, 9.4, 9.7, 11.5, and 24.24.
(e) The
reference to “Avanir Pharmaceuticals” in
Section 14.2 shall be deemed to refer to Halozyme,
Inc.
(f) Sublandlord
and Subtenant agree that Sublandlord shall not be responsible or
liable to Subtenant for the performance or non-performance of any
obligations of Master Landlord under the Master Lease, and in
furtherance thereof agree as follows:
(i) Except
as otherwise specifically set forth in this Sublease, Sublandlord
shall not be required to provide or perform any insurance and
services or any alterations, improvements, improvement allowances
or other construction obligations as to the Sublease Premises.
Notwithstanding anything to the contrary contained in this
Sublease, Sublandlord shall not be required to (A) perform any
maintenance or make any of the repairs to the Sublease Premises,
Building or the Center, (B) comply with any laws or
requirements of governmental authorities regarding the maintenance
or operation of the Sublease Premises after Subtenant takes
possession of the Premises or prior thereto the extent required to
be complied with by Master Landlord under the Master Lease,
(C) take any other action relating to the operation,
maintenance, repair, alteration or servicing of the Sublease
Premises that Master Landlord may have agreed to provide, furnish,
make, comply with, or take, or cause to be provided, furnished,
made, complied with or taken under the Master Lease, or
(D) provide Subtenant with any rebate, credit, allowance or
other concession required of Master Landlord for any reason
pursuant to the Master Lease unless Sublandlord receives a rent
abatement with respect to the Sublease Premises and Subtenant is
not in default of its obligations under the Sublease, beyond all
applicable notice and cure periods. Sublandlord makes no
representation or warranty of quiet enjoyment as to any persons
claiming by, through or under Master Landlord, but Sublandlord
represents and warrants quiet enjoyment as against any person
claiming by, through or under Sublandlord.
(ii) Sublandlord
agrees, upon request of Subtenant, to use reasonable efforts, at
Subtenant’s sole cost and expense, to cause Master Landlord
to provide, furnish, or comply with any of Master Landlord’s
obligations under the Master Lease or to provide any required
consents or approvals; provided, however, that Sublandlord shall
not be obligated to use such efforts or take any action which, in
Sublandlord’s reasonable judgment, might give rise to a
default by Sublandlord under the Master Lease. Such efforts shall
include, without limitation, upon Subtenant’s request,
notifying Master Landlord within two (2) business days of its
non-performance under the Master Lease and requesting that Master
Landlord perform its obligations thereunder. If Master Landlord
shall default in the performance of any of its obligations under
the Master Lease or at law, Sublandlord shall, upon request and at
the expense of Subtenant, cooperate with Subtenant in the
prosecution of any reasonable action or proceeding, in order to
have Master Landlord (A) make such repairs, furnish such
electricity, provide such services or
9
comply with any
other obligation of Master Landlord under the Master Lease or as
required by law, and/or (B) compensate Subtenant for any
earlier default by Master Landlord in the payment or performance of
its liabilities and obligations under the Master Lease during the
Sublease Term. Such cooperation shall include assigning
Sublandlord’s rights under the Master Lease to Subtenant to
the extent necessary to permit Subtenant to institute legal
proceedings against Master Landlord to obtain the performance of
Master Landlord’s obligations under the Master Lease;
provided, however, that if Subtenant commences a lawsuit or other
action, Subtenant shall pay all costs and expenses incurred in
connection therewith (with any matter affecting the Sublease
Premises, or a proportionate share of such costs if the matter also
effects the Master Premises), and Subtenant shall indemnify
Sublandlord against, and hold Sublandlord harmless from, all costs
and expenses incurred by Sublandlord in connection
therewith.
(iii) Subtenant
shall not make any claim against Sublandlord for any damage which
may arise by reason of: (A) the failure of Master Landlord to
keep, observe or perform any of its obligations under the Master
Lease; or (B) the acts or omissions of Master Landlord or its
employees, agents, licensees, contractors or invitees.
(iv) Subtenant
agrees that any waiver of liability, waiver of subrogation rights,
or indemnification provisions in the Master Lease which are
incorporated herein as waivers or obligations of Subtenant
(including, but not limited to, in Sections 9.5, 12.2, 13 and
14.5 of the Master Lease, to the extent applicable to and
incorporated in this Sublease), shall be deemed expanded so as to
provide for Subtenant to make such waivers and provide such
indemnities not only in favor of Sublandlord, but also in favor of
Master Landlord, and the respective affiliated employees, agents
and the like of both Sublandlord and Master Landlord as enumerated
in such provisions.
(g) In
the event that Sublandlord, as Tenant, is entitled to termination
rights for all or a portion of the Sublease Premises, including,
without limitation, as a result of (i) damage and destruction
under Section 16 of the Master Lease, or (ii) a partial
condemnation under Section 17 of the Master Lease, then
Subtenant shall be entitled to similar termination rights with
respect to the portion or all of the Sublease Premises
affecte
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