TRU-015 for the Treatment of Rheumatoid Arthritis. Rheumatoid arthritis, or RA, is estimated to affect between 2 and 2.5 million people in the United States, with approximately 100,000 new cases diagnosed each year. It is estimated that approximately 4.3 million people are affected by RA in the United States, Japan and Europe. Total worldwide sales of protein therapeutics used for the treatment of RA were $7.6 billion in 2005 and are expected to grow to $10 billion in 2010

EX-10.10 13 v18917orexv10w10.txt EXHIBIT 10.10 EXHIBIT 10.10 February 1, 2006 Mr. Hans van Houte TRUBION PHARMACEUTICALS, INC. 2401 Fourth Avenue, Suite 1050 Seattle, Washington 98121 Dear Hans: Please refer to the Fourth and Battery Office Lease dated April 28, 2003 and all addenda and amendments thereto (the "Office Lease" or "Lease") for the space Trubion Pharmaceuticals (hereinafter referred to as "Trubion" or "Lessee") occupies within the Fourth and Battery building. This letter (this "Amendment") shall constitute an amendment to the Lease. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Lease. PREMISES Effective as of the Expansion Space Effective Date (defined below), Trubion Pharmaceuticals, Inc. agrees to lease the additional space (the "Expansion Space") of approximately 15,892 rentable square feet which is the entire 11th floor of the Fourth and Battery Building, (location attached as Exhibit "A") so that, from and after the Expansion Space Effective Date, the term "Premises" as defined in Paragraph 1 of your Lease (Description), shall be changed from your existing space (10th and 12th floor Premises) of 31,507 rentable square feet ("Existing Space") to 47,399 rentable square feet. The floor plans attached as Exhibit A to the Lease will be supplemented by the floor plan of the Expansion Space attached hereto as Exhibit A. Lessor shall deliver the Expansion Space to Lessee on the Expansion Space Effective Date in the condition described in Section 2 of the Lease and the parties agreed that the rights and obligations of Lessee and Lessor set forth in Section 2 of the Lease shall apply with respect to the Expansion Space. LEASE TERM Lessor shall cause the lease of the current occupant of the Expansion Space to terminate as to the Expansion Space, and shall relocate such occupant from the Expansion Space, on or prior to May 1, 2006. The term of the Lease with Mr. Hans van Houte TRUBION PHARMACEUTICALS, INC. February 1, 2006 Page 2 respect to the Expansion Space shall be eighty-four (84) months commencing the later of May 1, 2006 and the date Lessor has complied with its obligations in the first sentence of this paragraph and delivers to Lessee possession of the Expansion Space in the required condition (the "Expansion Space Effective Date") and expiring April 30, 2013. The term of the Lease for the Existing Space shall be extended so it is coterminous. Lessee and Lessee's agents and employees may access the Expansion Space from time to time prior to the Expansion Space Effective Date to facilitate Lessee's space planning and physical due diligence. If the Expansion Space Effective Date is delayed for any reason beyond June 1, 2006, then in addition to Lessee's other rights or remedies, Lessee may terminate this Amendment by written notice to Lessor, or, at Lessee's election, the date Lessee is otherwise obliged to commence payment of rent for the Expansion Space shall be delayed by one additional calendar day for each calendar day that the Expansion Space Effective Date is delayed beyond such date. RENT The Base Rent per rentable square foot for the Expansion Space shall be at the annual rate of $25.00 ($33,108.33 per month) for months 1 through 84. The rent for the Existing Space shall remain as is directed in the Office Lease and earlier amendment for the full eighty-four (84) months. The "base year" for calculating Lessee's proportionate share of Comparison Year Costs (if any) with respect to the Expansion Space, shall be the calendar year 2006 and Lessee shall have no obligation to pay its proportionate share of Operating Services and Real Estate Taxes with respect to the Expansion Space until 13 months after the Expansion Space Effective Date. The provision of Section 10 of the Lease shall apply with respect to the Expansion Space provided however that references therein to 2004 shall be deemed references to 2006 with respect to the Expansion Space. The base year for the Existing Space shall remain as is directed in the Office Lease and earlier amendment. AS-IS, WHERE-IS Lessee acknowledges Lessee has fully inspected the Expansion Space and, subject to the delivery requirement set forth above, accepts the Expansion Space Mr. Hans van Houte TRUBION PHARMACEUTICALS, INC. February 1, 2006 Page 3 in an as-is, where-is condition. Lessee shall not call upon Lessor to provide any modifications or improvements to the Expansion Space. PARKING Effective as of the Expansion Space Effective Date, Lessee shall have the right to lease eleven (11) additional parking spaces inside the building garage at the market rate. PERMITTED ALTERATIONS Lessee may construct tenant improvements in the Expansion Space generally consistent with the specifications and objectives described in Exhibit "B" attached hereto (the "Permitted Improvements") and consistent with the terms of Exhibit C to the Office Lease. Lessor acknowledges and agrees that Lessee intends to use the North Half of the tenth floor Expansion Space for scientific laboratory space and that Lessee shall have the right to install certain of the Permitted Improvements on the adjacent roof of the 9th floor of the building. The last sentence of Section 47 of the Lease shall apply to the Permitted Improvements, and the references therein to "Tenant Improvements" shall also include the Permitted Improvements. Lessor shall be responsible for the costs described in Section 4 of Exhibit C to the Lease to the extent such costs arise in connection with the construction of the Permitted Improvements. RIGHT OF FIRST OFFER Subordinate to existing rights of first offer and first refusal, Lessee shall have a right of first offer on all space that may become available in the Building on the terms set forth in Section 46 of the Lease, and references therein to "Expansion Space" hereinafter shall refer to any space in the Building that becomes available. MISCELLANEOUS This Amendment (together with the Lease) constitutes the entire agreement between Lessor and Lessee regarding the Expansion Space and the subject matter contained herein and supersedes any and all prior and/or contemporaneous oral or written negotiations, agreements or understandings. Mr. Hans van Houte TRUBION PHARMACEUTICALS, INC. February 1, 2006 Page 4 This Amendment shall be binding upon and inure to the benefit of Lessor and Lessee and their respective heirs, legal representatives, successors and assigns. No subsequent change or addition to this Amendment shall be binding unless in writing and duly executed by both Lessor and Lessee. Except as specifically amended hereby, all of the terms and conditions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed. Please consider this document, when fully executed, as our agreement for the amendment of your Office Lease. If you are in agreement with the above, please sign below where indicated and return all four copies to me for Martin Selig's signature. Upon Full execution, I will return two copies for your own files. Thank you Hans, for this lease of additional space. We appreciate your tenancy with us and look forward to continuing to satisfy your office and lab space needs. Very truly yours, /s/ Theresa Howard - ------------------------------------- Theresa Howard TRUBION131.06 AGREED AND ACCEPTED: SELIG REAL ESTATE HOLDINGS EIGHT, TRUBION PHARMACEUTICALS, INC. LLC /s/ Martin Selig /s/ Hans van Houte - ------------------------------------- ---------------------------------------- By: Martin Selig By: Hans van Houte Its: Managing Member Its: VP, Finance Dated: February 10, 2006 Dated: February 6, 2006 EXHIBIT B (LAYOUT OF OFFICE SPACE) (FLOOR PLAN 10th FLOOR)