> Exhibit 10.31

FOURTH AMENDMENT TO LEASE

THIS FOURTH AMENDMENT TO LEASE (“Fourth Amendment”), dated as of this ____ day
of ___________, 2003, by and between NAPRO BIOTHERAPEUTICS, INC., a Colorado
corporation (“Tenant”) and (i) GUNBARREL FACILITY L.L.C., a Colorado limited
liability company (“Gunbarrel”), and (ii) MEYERS LAND & CATTLE COMPANY, a
Colorado corporation (“Meyers”)(Gunbarrel and Meyers are collectively referred
to herein as “Landlord”).

WHEREAS, Gunbarrel and Tenant heretofore entered into that certain Office Lease
dated as of October 16, 1995, and amended pursuant to that certain (a) First
Amendment to Lease dated as of November 27, 1995, and (b) Second Amendment to
Lease dated as of January 31, 1997 (collectively, including the Third Amendment
to Lease described below, the “Lease”), pursuant to which Tenant leased certain
premises commonly known as 6304 Spine Road, Module A, Boulder, Colorado, as more
particularly described in the Lease the (“Leased Premises”); and

WHEREAS, On or about August 28, 1998, Gunbarrel sold and assigned to Meyers a
fifty percent (50%) undivided interest, as a tenant-in-common, in and to the
Lease and the real property in which the leased premises are located (the
“Property,” as more particularly described in Exhibit A of the Lease); and

WHEREAS, Landlord and Tenant thereafter entered into that certain Third
Amendment to Lease dated as of February 6, 2002; and

WHEREAS, the Leased Premises currently consist of a total of approximately
53,948 net rentable square feet, as depicted on Exhibit A attached hereto); and

WHEREAS, Landlord and Tenant now desire to modify and amend the Lease to provide
for Tenant’s relinquishment of approximately 29,154 square feet of the Leased
Premises on or before June 1, 2003 (the “Phase 1 Space”), and the remaining
approximately 24,794 square feet of the Lease Premises on or before December 31,
2003 (the “Phase 2 Space”), all on the terms and conditions set forth herein
below (The Leased Premises, the Phase 1 Space and the Phase 2 Space are each
identified on Exhibit A attached hereto).

NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, Landlord and Tenant agree as follows:

1.             All terms used herein which are not otherwise defined herein
shall have the respective meanings ascribed to them in the Lease.

2.             On or before June 1, 2003, Tenant shall vacate and surrender to
Landlord full possession of the Phase 1 Space, as depicted in Exhibit A attached
hereto. Accordingly, commencing June 1, 2003:

(a)       the “Leased Premises,” as that term is used in the Lease shall mean
only the Phase 2 (and shall consist of approximately 24,794 sq. ft.);

 

 

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(b)       Base Rent for the period from June 1, 2003 through December 31, 2003
shall be $17,087.20 per month (+NNN); and

(c)       Tenant’s percentage share of Building Operating Expenses shall be
14.5% (24,794 sq. ft. ÷ 170,998 sq. ft.).

3.             On or before December 31, 2003, Tenant shall vacate and surrender
to Landlord the Phase 2 Space (constituting all of the remaining Leased
Premises), and the Lease shall be terminated and of no further force or effect
except for Tenant’s obligation and liability for damages to the Leased Premises,
Tenant’s obligation to restore that portion of Phase 2 depicted on Exhibit B to
“shell condition” at Tenant’s sole cost and expense, and as otherwise provided
herein and in the Lease. For purposes of this Amendment, “shell condition” shall
mean completion of all work set forth in Exhibit C (“Scope of Work”) attached
hereto to Landlord’s reasonable satisfaction. All such obligations and
liabilities of Tenant in this Paragraph 3 shall survive the termination of the
Lease.

4.             Tenant hereby acknowledges and reaffirms its covenants and
obligations regarding “Hazardous Substances”, as defined and set forth in
Section 7 of the Lease Addendum attached to the Lease, and in particular affirms
its obligation to clean-up any Hazardous Substances and indemnify Landlord
therefor, in accordance with Subsections 7.3 and 7.4 of the Lease Addendum.
Tenant hereby further agrees that all such obligations and liabilities of Tenant
in said Section 7 of the Lease Addendum shall survive the termination of the
Lease.

5.             Concurrently with the mutual execution of this Amendment, Tenant
shall pay to Landlord, in cash or other immediately available funds (a) a lease
termination fee in the amount of $139,808.38, (b) reimbursement of the brokerage
commission due to Cushman and Wakefield in the amount of $34,305.38, and (c) a
tenant improvement allowance in the total amount of $75,000.00.

6.             Notwithstanding anything herein to the contrary, the parties
hereby expressly acknowledge and agree that this Amendment is subject to and
contingent upon Lessor entering into a lease amendment (“Lockheed Lease
Amendment”) with Lockheed Martin Corporation (“Lockheed”), in form and on terms
and conditions acceptable to Lessor in its sole and absolute discretion,
pursuant to which Lockheed shall lease the Leased Premises. If the Lockheed
Lease Amendment is not obtained by Landlord on or before March 31, 2003, this
Amendment shall be deemed null and void (unless otherwise agreed by the parties
in writing), in which event Lessor shall refund the lease termination fee,
brokerage commission and tenant improvement allowance paid by Lessee to Lessor
in accordance with Paragraph 5 above.

7.             Other than as expressly provided herein, Lessor and Lessee
warrant and represent to each other that neither party has employed, engaged or
retained a broker in connection with the transaction contemplated in this
Amendment, with the Lease or Lockheed Martin Corporation’s leasing of the Leased
Premises. Lessor shall indemnify Lessee against any expense or liability
incurred by Lessee as a result of any claim for brokerage or other commissions
made by any broker, finder, or agent, whether or not meritorious, employed by
Lessor or claiming by, through, or under Lessor. Lessee shall indemnify Lessor
against any expense or liability incurred by

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Lessor as a result of any claim for brokerage or other commissions made by any
broker, finder, or agent, whether or not meritorious, employed by Lessee or
claiming by, through, or under Lessee.

8.             Except as modified by this Fourth Amendment, the Lease and all
covenants, agreements, terms and conditions thereof shall remain in full force
and effect and are hereby ratified and confirmed.

9.             Except as otherwise specifically provided herein, the terms,
covenants and conditions contained in this Fourth Amendment shall bind and inure
to the benefit of the respective heirs, successors, executors, administrators
and assigns of each of the parties hereto.

10.           This Fourth Amendment may not be changed orally, but only by an
agreement in writing signed by the party against whom enforcement of any waiver,
change, modification or discharge is sought.

IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment of
Lease as of the day and year first above written.

  

 

 

 

LANDLORD:

 

 

GUNBARREL FACILITY L.L.C.,
a Colorado limited liability company

and

MEYERS LAND & CATTLE COMPANY,
a Colorado corporation

 

 

 

 

  

 

 

 

By: Colorado & Santa Fe Real Estate Company

 

 

 

Their: Property Management Agent

 

 

 

 

  

 

 

 

 

By: 

 

 

 

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Milt Burlingame, President

 

 

 

 

TENANT:

 

 

NAPRO BIOTHERAPEUTICS, INC.,
a Colorado corporation

 

 

 

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By: 

 

 

 

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Gordon Link, Vice President, Finance/CFO

 

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EXHIBIT A

Leased Premises, Phase 1 Space
and Phase 2 Space

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EXHIBIT B

Partial Restoration of Phase 2 Space

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EXHIBIT C

Scope of Work

 

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