On May 2, 2017, Exelixis, Inc. (“Exelixis”) entered into a Lease Agreement (the “Lease”) with Ascentris 105, LLC (“Landlord”), for an aggregate of 110,783 square feet of space in office and research facilities located at 1851, 1801 and 1751 Harbor Bay Parkway, Alameda, California (the “Premises”).

The term of the Lease is for a period of ten years (the “Term”), which will begin on the earlier of the date that is six months following the Landlord’s delivery of the entire Premises or Exelixis’ occupancy of either 1851 or 1801 Harbor Bay Parkway. Exelixis anticipates the Term will commence on or about February 1, 2018. Exelixis has been provided an allowance of approximately $5.5 million for tenant improvements to the Premises and is also entitled to $1.2 million in additional allowance and contributions toward updating the HVAC systems located on the Premises.

Exelixis has a one-time option to terminate the Lease without cause on the last day of the 8^th>year of the Term. Exelixis also has two consecutive five-year options to extend the Term, the first of which would commence upon the expiration of the Term, each at a market rate determined according to the Lease. In addition, Exelixis has a right of first offer to lease certain additional space, in the aggregate of approximately 170,000 square feet of space, as that additional space becomes available over the remainder of the Term at 1601, 1701, 1751, and 1801 Harbor Bay Parkway, Alameda, California at a market rate determined according to the Lease.

The total monthly base rent under the Lease for the Premises will be $182,792 per month for the first year of the Term, rising each year and ending with $238,502 per month in the tenth year, provided that, so long as there is no continuing Default (as defined in the Lease), the Landlord has agreed to partially abate Exelixis’ rent obligations by $83,792 per month for the first twelve calendar months of the Term. In addition, Exelixis will pay the Landlord specified percentages of certain operating expenses and taxes related to the leased facilities incurred by the Landlord.

In connection with the Lease, Exelixis will deliver to the Landlord an irrevocable standby letter of credit for $500,000 as security for Exelixis’ performance of its obligations under the Lease, provided that, so long as there is no continuing Default (as defined in the Lease), the amount of the letter of credit will be progressively reduced each year of the Term, ending with $252,698 in the tenth year.

The foregoing summary of the Lease does not purport to be complete and is qualified in its entirety by reference to the Lease, which will be filed as an exhibit to Exelixis’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.

About EXELIXIS, INC. (NASDAQ:EXEL)

Exelixis, Inc. is a biopharmaceutical company. The Company is engaged in developing small molecule therapies for the treatment of cancer. It focuses on the development and commercialization of cabozantinib, an inhibitor of multiple receptor tyrosine kinases, in various tumor indications. Cabozantinib is indicated for the treatment of progressive, metastatic medullary thyroid cancer, and is sold under the brand name COMETRIQ. It is evaluating Cabozantinib in a development program, which consists of over 45 clinical trials, across multiple indications, including pivotal studies in advanced renal cell carcinoma (RCC) and hepatocellular carcinoma (HCC). Its other products are Cobimetinib and XL888. Cobimetinib is a potent, selective inhibitor of MEK, a kinase that is a component of the RAS/RAF/MEK/ERK pathway. XL888 is a small molecule oral inhibitor of Heat Shock Protein 90 (HSP90), a molecular chaperone protein that affects the activity and stability of a range of regulatory proteins.

EXELIXIS, INC. (NASDAQ:EXEL) Recent Trading Information

EXELIXIS, INC. (NASDAQ:EXEL) closed its last trading session up +0.01 at 23.16 with 4,801,215 shares trading hands.