Document:

exhibit1015leaseagreemen

                 LEASE by and between BMR-AXIOM LP, a Delaware limited partnership and LA JOLLA PHARMACEUTICAL COMPANY, a California corporation 

 

Table of Contents 1. Lease of Premises .................................................................................................................. 1 2. Basic Lease Provisions .......................................................................................................... 2 3. Term ...................................................................................................................................... 4 4. Possession and Commencement Date. .................................................................................. 7 5. Condition of Premises ......................................................................................................... 10 6. Rentable Area ...................................................................................................................... 11 7. Rent ..................................................................................................................................... 12 8. Rent Adjustments ................................................................................................................ 12 9. Operating Expenses ............................................................................................................. 12 10. Taxes on Tenant’s Property................................................................................................. 19 11. Security Deposit .................................................................................................................. 20 12. Use ....................................................................................................................................... 23 13. Rules and Regulations, CC&Rs, Parking Facilities and Common Area .............................. 25 14. Project Control by Landlord ................................................................................................ 26 15. Quiet Enjoyment .................................................................................................................. 27 16. Utilities and Services ........................................................................................................... 27 17. Alterations ........................................................................................................................... 31 18. Repairs and Maintenance .................................................................................................... 34 19. Liens .................................................................................................................................... 36 20. Estoppel Certificate ............................................................................................................. 37 21. Hazardous Materials ............................................................................................................ 37 22. Odors and Exhaust .............................................................................................................. 40 23. Insurance; Waiver of Subrogation ....................................................................................... 41 24. Damage or Destruction ........................................................................................................ 45 25. Eminent Domain .................................................................................................................. 47 26. Surrender ............................................................................................................................. 48 27. Holding Over ....................................................................................................................... 49 28. Indemnification and Exculpation ........................................................................................ 50 29. Assignment or Subletting .................................................................................................... 51 30. Subordination and Attornment ............................................................................................ 55 31. Defaults and Remedies ........................................................................................................ 56 i 

 

ii  32. Bankruptcy ............................................................................................................................ 61 33. Brokers .................................................................................................................................. 61 34. Definition of Landlord .......................................................................................................... 62 35. Limitation of Landlord’s Liability ........................................................................................ 62 36. Joint and Several Obligations ............................................................................................... 63 37. Representations ..................................................................................................................... 63 38. Confidentiality ...................................................................................................................... 64 39. Notices .................................................................................................................................. 64 40. Miscellaneous ....................................................................................................................... 64 41. [Intentionally omitted] .......................................................................................................... 67 42. Option to Extend Term ......................................................................................................... 67 

 

 LEASE THIS LEASE (this “Lease”) is entered into as of this     day of December, 2016 (the “Execution Date”), by and between BMR-AXIOM LP, a Delaware limited partnership (“Landlord”), and LA JOLLA PHARMACEUTICAL COMPANY, a California corporation (“Tenant”). RECITALS  A. WHEREAS, Landlord owns certain real property (the “Property”) and the improvements on the Property located at 4535, 4545 and 4550 Towne Centre Court, San Diego, California, known as “AXIOM”; and  B. WHEREAS, Landlord wishes to lease to Tenant, and Tenant desires to lease from Landlord, certain premises (the “Premises”) in the Building located at 4550 Towne Centre Court, San Diego, California (the “Building”) pursuant to the terms and conditions of this Lease, as detailed below.  AGREEMENT  NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:  1. Lease of Premises.  1.1 Effective on the Term Commencement Date (as defined below), Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, as shown on Exhibit A attached hereto, including exclusive shafts, cable runs and mechanical spaces, for use by Tenant in accordance with the Permitted Use (as defined below) and no other uses. The Property and all landscaping, parking facilities, private drives and other improvements and appurtenances related thereto, including the Building and other buildings located on the Property, are hereinafter collectively referred to as the “Project.” All portions of the Project that are for the non-exclusive use of tenants of the Project generally, including driveways, sidewalks, parking areas, landscaped areas, public restrooms, public lobbies and the Amenities Center (as defined below), are hereinafter referred to as “Common Area.”  1.2. As a component of the Landlord Work (as defined below), Landlord shall develop an amenities facility serving the Project (the “Amenities Center”), which shall include certain amenities for the Project, which amenities shall include a café and fitness center, along with other amenities selected by Landlord (such as a conference area). Any such amenities shall be referred to herein as the “Amenities Center Services.” 

 

2  2. Basic Lease Provisions. For convenience of the parties, certain basic provisions of this Lease are set forth herein. The provisions set forth herein are subject to the remaining terms and conditions of this Lease and are to be interpreted in light of such remaining terms and conditions.  2.1. This Lease shall take effect upon the Execution Date and, except as specifically otherwise provided within this Lease, each of the provisions hereof shall be binding upon and inure to the benefit of Landlord and Tenant from the date of execution and delivery hereof by all parties hereto.  2.2. In  the  definitions  below,  each  current  Rentable  Area  (as  defined  below)  is expressed in square feet. Rentable Area and “Tenant’s Pro Rata Shares” are all subject to adjustment as provided in this Lease.   Definition or Provision Means the Following (As of the Execution Date) Approximate Rentable Area of Premises1 83,008 square feet Approximate Rentable Area of Building 83,008 square feet Approximate Rentable Area of Project 182,866 square feet Tenant’s Pro Rata Share of Building 100% Tenant’s Pro Rata Share of Project 45.39%  2.3. Initial monthly and annual installments of Base Rent for the Premises (“Base Rent”) as of the Term Commencement Date, subject to adjustment under this Lease:    Dates Square Feet of Rentable Area  Base Rent per Square Foot of Rentable Area  Monthly Base Rent  Annual Base Rent Months 1 - 8 83,008 $0.00 monthly N/A N/A Months 9 - 12 83,008 $3.65 monthly $302,979.20 $3,635,750.40  2.4. Estimated Term Commencement Date: November 1, 2017  2.5. Estimated Term Expiration Date: October 31, 2027    1 The Rentable Area of the Premises includes an equitable allocation of the Rentable Area of the Amenities Center. 

 

3  2.6. Security Deposit: $908,937.60  2.7. Permitted Use: Office and laboratory use and ancillary uses in support thereof, all in conformity with all federal, state, municipal and local laws, codes, ordinances, rules and regulations of Governmental Authorities (as defined below), committees, associations, or other regulatory committees, agencies or governing bodies having jurisdiction over the Premises, the Building, the Property, the Project, Landlord or Tenant, including both statutory and common law and hazardous waste rules and regulations (“Applicable Laws”)  2.8. Address for Rent Payment:  BMR-Axiom LP Attention Entity 694 P.O. Box 511387 Los Angeles, California 90051-7942  2.9. Address for Notices to Landlord:  BMR-Axiom LP 17190 Bernardo Center Drive San Diego, California 92128 Attn: Legal Department  2.10. Address for Notices to Tenant:  La Jolla Pharmaceutical Company 10182 Telesis Court, Suite 600 San Diego, California 92121 Attn: Legal Department slee@ljpc.com  2.11. Address for Invoices to Tenant:  La Jolla Pharmaceutical Company 10182 Telesis Court, Suite 600 San Diego, California 92121 Attn: Accounts Payable E-Mail: ap@ljpc.com  2.12. The following Exhibits are attached hereto and incorporated herein by reference:  Exhibit A Premises Exhibit B Work Letter Exhibit B-1 Tenant Work Insurance Schedule Exhibit C Acknowledgement of Term Commencement Date and Term Expiration Date Exhibit D Landlord Work 

 

4  Exhibit E Form of Letter of Credit Exhibit F Rules and Regulations Exhibit G Form of Additional TI Allowance Acceptance Letter Exhibit H Tenant’s Personal Property Exhibit I Form of Estoppel Certificate Exhibit J [Intentionally Omitted] Exhibit K Rooftop License Exhibit L TI Allowance and Commission Fee Schedule Exhibit M Form Subordination, Non-Disturbance and Attornment Agreement  3. Term. The actual term of this Lease (as the same may be extended pursuant to Article 42 hereof, and as the same may be earlier terminated in accordance with this Lease, the “Term”) shall commence on the actual Term Commencement Date (as defined in Article 4) and end on the date (the “Term Expiration Date”) that is one hundred twenty (120) months after the actual Term Commencement Date, subject to extension or earlier termination of this Lease as provided herein. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1933 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME.  3.1 Clinical Trial Termination Option. As of the Execution Date, Tenant is conducting a Phase 3 clinical trial for LJPC-501 for the treatment of catecholamine-resistant hypotension (the “Clinical Trial”). In the event that the Clinical Trial fails to meet one or more of the primary or secondary endpoints (such endpoints being referred to herein collectively as the “Clinical Endpoints”) on or before March 31, 2017 (the “Clinical Trial Termination Outside Date), then Tenant will have a one-time option to terminate this Lease (the “Clinical Trial Termination Option”), subject to the terms, conditions and provisions of this Section. In the event that the requirements of the foregoing sentence have not occurred on or before the Clinical Trial Termination Outside Date, the Clinical Trial Termination Option shall automatically become void and of no further force or effect. The Clinical Trial Termination Outside Date shall not be extended for any reason whatsoever.  3.1.1 The Clinical Trial Termination Option is conditional upon Tenant delivering the following items to Landlord on or before the Clinical Trial Termination Outside Date: (a) written notice of Tenant’s election to exercise the Clinical Trial Termination Option (the “Clinical Trial Termination Notice”) and (b) the Clinical Trial Termination Deliverables (as defined below). Tenant shall not be deemed to have exercised the Clinical Trial Termination Option unless and until Tenant has delivered to Landlord both the Clinical Trial Termination Notice and the Clinical Trial Termination Deliverables. Time shall be of the essence as to Tenant’s exercise of the Clinical Trial Termination Option. Tenant acknowledges that it would be inequitable to require Landlord to accept any exercise of the Clinical Trial Termination Option after the Clinical Trial Termination Outside Date. Any attempted exercise of the Clinical Trial Termination Option after the Clinical Trial Termination Outside Date shall be void and of no force or effect.  3.1.2 For purposes of this Lease, the “Clinical Trial Termination Deliverables” means (a) an amount equal to the Clinical Trial Termination Fee (as defined below), and (b) a summary of the Clinical Trial results certified by an officer of Tenant as true and correct and a 

 

5  statement from such officer certifying that the Clinical Trial failed to achieve one or more of the Clinical Endpoints. Landlord acknowledges that the proof provided in (b) above may contain confidential and proprietary information, and Landlord agrees that all such information shall be kept strictly confidential, subject to the terms of Article 38. The “Clinical Trial Termination Fee” means an amount equal to (i) Five Hundred Thousand Dollars ($500,000) if the Clinical Trial Termination Option is exercised in accordance with this Section on or before January 31, 2017, (ii) Seven Hundred Thousand Dollars ($700,000) if the Clinical Trial Termination Option is exercised in accordance with this Section between February 1, 2017 and February 28, 2017, and (iii) Nine Hundred Thousand Dollars ($900,000) if the Clinical Trial Termination Option is exercised in accordance with this Section between March 1, 2017 and the Clinical Trial Termination Outside Date.  3.1.3 If Tenant exercises the Clinical Trial Termination Option in accordance with this Section on or before the Clinical Trial Termination Outside Date, then this Lease shall terminate on the date which is three (3) business days after the date Tenant so exercises the Clinical Trial Termination Option (such date, the “Clinical Trial Termination Date”), and this Lease shall thereafter be of no further force or effect, except for those provisions that, by their express terms, survive the expiration or earlier termination of this Lease. Tenant shall surrender the Premises to Landlord on the Clinical Trial Termination Date in accordance with all of the terms and conditions of this Lease. If Tenant does not so surrender the Premises in accordance with all of the terms and conditions of this Lease on or before the Clinical Trial Termination Date, then Tenant, pursuant to Section 27.2, shall become a tenant at sufferance with respect to the Premises until the actual date that Tenant surrenders the Premises to Landlord in accordance with the terms and conditions of this Lease and rent for the Premises shall commence to accrue on a per diem basis as of the Clinical Trial Termination Date at the rate set forth in Section 27.2, calculated as if the rent for the prior month were Three Hundred Two Thousand Nine Hundred Seventy-Nine and 20/100 Dollars ($302,979.20).  3.1.4 Notwithstanding anything in this Section to the contrary, Tenant shall not be permitted to exercise the Clinical Trial Termination Option during such period of time that Tenant is in Default under any provision of this Lease. Any attempted exercise of the Clinical Trial Termination Option during a period of time in which Tenant is so in Default shall be void and of no force or effect.  3.1.5 Landlord will keep all non-public information disclosed to Landlord in connection with the Clinical Trial and the Clinical Endpoints confidential in accordance with Article 38 of this Lease, and will not disclose such information, except in the circumstances permitted under Article 38.  3.2 Acquisition Termination Option. In the event that (a) substantially all of Tenant’s assets or stock are acquired by a third-party company in an arm’s length transaction for a legitimate business purpose, and (b) such acquiring company determines that the Premises are no longer needed for business operations, Tenant shall have the one-time option to terminate this Lease (the “Acquisition Termination Option”) effective as of the date that is any date (such date, the “Acquisition Termination Date”) selected by Tenant that is after the date that is ninety-six 

 

6  (96) months after the Term Commencement Date, subject to the terms, conditions and provisions of this Section.  3.2.1 The Acquisition Termination Option is conditional upon Tenant delivering the following items to Landlord on or before the date that is twelve (12) months prior to the Acquisition Termination Date: (a) written notice of Tenant’s election to exercise the Acquisition Termination Option (the “Acquisition Termination Notice”) and (b) the Acquisition Termination Deliverables (as defined below); provided, however, that the Acquisition Termination Fee (as defined below) shall not be due and payable until the Acquisition Termination Date. Tenant shall not be deemed to have exercised the Acquisition Termination Option unless and until Tenant has delivered to Landlord both the Acquisition Termination Notice and the Acquisition Termination Deliverables; provided, however, that the Acquisition Termination Fee shall not be due and payable until the Acquisition Termination Date. Notwithstanding anything contained herein, the Acquisition Termination Notice will be effective upon delivery of the Acquisition Termination Notice and the Acquisition Termination Deliverables (other than the Acquisition Termination Fee), irrespective of the fact that the Acquisition Termination Fee is payable at a later date. Time shall be of the essence as to Tenant’s exercise of the Acquisition Termination Option.  3.2.2 For purposes of this Lease, the “Acquisition Termination Deliverables” means (a) an amount equal to the Acquisition Termination Fee (as defined below), (b) proof that substantially all of the assets or stock of Tenant was acquired by a third-party company in an arm’s length transaction for a legitimate business purpose and (c) a statement from an officer of the acquiring company stating that the Premises are no longer needed for business operations. The “Acquisition Termination Fee” means an amount equal to the sum of (y) Two Million Four Hundred Twenty-Three Thousand Eight Hundred Thirty-Three and 60/100 Dollars ($2,423,833.60), plus (z) the unamortized amounts (as of the Acquisition Termination Date) of (i) the TI Allowance (as defined below), and (ii) all leasing commissions paid by Landlord in connection with this Lease (the “Commission Fee”) (which amounts in Subsection 3.2.2(z)(i) and (ii) shall be calculated by amortizing the same at eight percent (8%) per annum commencing on the Term Commencement Date and ending on the Term Expiration Date) as set forth on Exhibit L attached hereto.  3.2.3 If Tenant exercises the Acquisition Termination Option in accordance with this Section on or before the Acquisition Termination Outside Date, then this Lease shall terminate on the Acquisition Termination Date, and this Lease shall thereafter be of no further force or effect, except for those provisions that, by their express terms, survive the expiration or earlier termination of this Lease. Tenant shall surrender the Premises to Landlord on or before the Acquisition Termination Date in accordance with all of the terms and conditions of this Lease. If Tenant does not so surrender the Premises in accordance with all of the terms and conditions of this Lease on or before the Acquisition Termination Date, then Tenant, pursuant to Article 27, shall become a tenant at sufferance with respect to the Premises until the actual date that Tenant surrenders the Premises to Landlord in accordance with the terms and conditions of this Lease. 

 

7  3.2.4 Notwithstanding anything in this Section to the contrary, Tenant shall not be permitted to exercise the Acquisition Termination Option during such period of time that Tenant is in Default under any provision of this Lease and, at Landlord’s option, any exercise of the Acquisition Termination Option shall be null and void in the event that after Tenant’s exercise of the Acquisition Termination Option, but prior to the Acquisition Termination Date, Tenant is in Default under any provision of this Lease. Any attempted exercise of the Acquisition Termination Option during a period of time in which Tenant is so in Default shall be void and of no force or effect.  4. Possession and Commencement Date.  4.1. Landlord shall, at Landlord’s sole cost and expense, complete the work listed on Exhibit D attached hereto (the “Landlord Work”). Promptly following the Execution Date, Landlord shall commence the items of the Landlord Work identified on Exhibit D as the “Pre- Delivery Landlord Work” and shall diligently prosecute the Pre-Delivery Landlord Work to completion. Upon completion of the Pre-Delivery Landlord Work (a) Landlord shall deliver the Premises to Tenant for Tenant’s construction of the Tenant Improvements (as defined below), and (b) Tenant shall have full access to the Premises to construct the Tenant Improvements (subject to the terms, conditions and provisions of this Lease and the Work Letter). Landlord and Tenant will cooperate with one another as required to allow (i) Landlord to complete the Post-Delivery Landlord Work (as defined in Exhibit D) in accordance with Landlord’s plans and schedule for the completion of such work (and Tenant will ensure that Tenant’s construction of the Tenant Improvements does not interfere with the completion of the Post-Delivery Landlord Work) and (ii) Tenant to construct the Tenant Improvements (and Landlord will ensure that Landlord’s construction of the Post-Delivery Landlord Work does not interfere with the completion of the Tenant Improvements). In the event of a conflict in accordance with the foregoing which cannot be resolved through agreement of the parties, Landlord’s completion of the Post-Delivery Landlord Work will have priority.  4.2. The “Term Commencement Date” shall be the earlier of (a) the Estimated Term Commencement Date and (b) the first day Tenant commences business operations in any portion of the Premises; provided, however, if Landlord fails to complete the Pre-Delivery Landlord Work by February 28, 2017 (the “Pre-Delivery Landlord Work Target Date”) (which Pre- Delivery Landlord Work Target Date will be extended on a day-for-day basis by the number of days of delay caused by Force Majeure or delays caused by Tenant or any Tenant Party (as defined in Section 21.1)), then the Estimated Term Commencement Date shall be extended on a day-for-day basis for each day thereafter that the Pre-Delivery Landlord Work is not complete. If Landlord fails to complete the Pre-Delivery Landlord Work by May 1, 2017 (the “Pre- Delivery Landlord Work Outside Date”) (which Pre-Delivery Landlord Work Outside Date will be extended on a day-for-day basis by the number of days of delay caused by Force Majeure or delays caused by Tenant or any Tenant Party (as defined in Section 21.1)), then Tenant shall be entitled to receive one (1) day of Rent abatement for each day thereafter that the Pre-Delivery Landlord Work is not complete, and such abatement shall be applied toward Tenant’s first required payment(s) of Rent during the Term. Tenant shall execute and deliver to Landlord written acknowledgment of the actual Term Commencement Date and the Term Expiration Date within ten (10) days after Tenant takes occupancy of the Premises, in the form attached as 

 

8  Exhibit C hereto. Failure to execute and deliver such acknowledgment, however, shall not affect the Term Commencement Date or Landlord’s or Tenant’s liability hereunder. Failure by Tenant to obtain validation by any medical review board or other similar governmental licensing of the Premises required for the Permitted Use by Tenant shall not serve to extend the Term Commencement Date. The term “Substantially Complete” or “Substantial Completion” means that the Tenant Improvements are substantially complete in accordance with the Approved Plans (as defined in the Work Letter), except for minor punch list items.  4.3. Tenant shall cause the Tenant Improvements to be constructed in the Premises pursuant to the Work Letter attached hereto as Exhibit B (the “Work Letter”) at a cost to Landlord not to exceed (i) Twelve Million Four Hundred Fifty-One Thousand Two Hundred and 00/100 Dollars ($12,451,200) (the “Base TI Allowance”) plus (ii) if properly requested by Tenant pursuant to this Section, One Million Two Hundred Forty-Five Thousand One Hundred Twenty and 00/100 Dollars ($1,245,120) (the "Additional TI Allowance"), for a total of Thirteen Million Six Hundred Ninety-Six Thousand Three Hundred Twenty Dollars ($13,696,320). The Base TI Allowance, together with the Additional TI Allowance (if properly requested by Tenant pursuant to this Article), shall be referred to herein as the "TI Allowance. The TI Allowance may be applied to the costs of (a) construction, (b) project review by Landlord (which fee shall equal one-half of one percent (0.5%) of the TI Allowance), (c) commissioning of mechanical, electrical and plumbing systems by a licensed, qualified commissioning agent hired by Tenant, and reasonably approved by Landlord, (d) space planning, architect, engineering and other related services performed by third parties unaffiliated with Tenant and up to three and one-half percent (3.5%) of the TI Allowance may be used for the cost of a third party project management consultant retained by Tenant, (e) building permits and other taxes, fees, charges and levies by Governmental Authorities  (as  defined  below)  for  permits  or  for  inspections  of the  Tenant Improvements, and (f) costs and expenses for labor, material, equipment and fixtures. In no event shall the TI Allowance be used for (v) the cost of work that is consistent with the Approved Plans (as defined in the Work Letter) or otherwise approved in writing by Landlord, (w) payments to Tenant or any affiliates of Tenant, (x) the purchase of any furniture, personal property or other non-building system equipment (provided, however, that Tenant shall be permitted to apply up to One Million Two Hundred Forty-Five Thousand One Hundred Twenty and 00/100 Dollars ($1,245,120) of the TI Allowance toward Tenant’s cost to move into the Premises, to fabricate and install Tenant’s Signage, and to purchase furniture, fixtures and equipment, telecommunications and data cabling, security and audio visual systems to be used in the Premises), (y) costs resulting from any default by Tenant of its obligations under this Lease or (z) costs that are recoverable by Tenant from a third party (e.g., insurers, warrantors, or tortfeasors). Tenant will be permitted to reuse any of the existing fifteen (15) fume hoods currently being stored on the ground floor of the Building; provided that such fume hoods are accepted by Tenant in their “as is” condition and Landlord makes no representation or warranty as to the condition of such fume hoods or their fitness for Tenant’s intended use. Tenant will repair and maintain the fume hoods which Tenant elects to use throughout the Term in accordance with industry standard repair and maintenance standards, provided that Tenant will have the right to either replace or remove any fume hoods that Tenant has elected to use which reach the end of their serviceable life during the Term of the Lease. 

 

9  4.4. Base  Rent  shall  be  increased  to  include  the  amount  of  the  Additional  TI Allowance disbursed by Landlord in accordance with this Lease amortized over the initial Term at a rate of eight percent (8%) annually. Tenant shall have until the date that is six (6) months after the Term Commencement Date (the “TI Deadline”), to expend the unused portion of the TI Allowance, after which date Landlord’s obligation to fund such costs shall expire. The amount by which Base Rent shall be increased shall be determined (and Base Rent shall be increased accordingly) as of the Term Commencement Date and, if such determination does not reflect use by Tenant of all of the Additional TI Allowance, shall be determined again as of the TI Deadline, with Tenant paying (on the next succeeding day that Base Rent is due under this Lease (the "TI True-Up Date")) any underpayment of the further adjusted Base Rent for the period beginning on the Term Commencement Date and ending on the TI True-Up Date.  4.5. Landlord shall not be obligated to expend any portion of the Additional TI Allowance until Landlord shall have received from Tenant a letter in the form attached as Exhibit G hereto executed by an authorized officer of Tenant. In no event shall any unused TI Allowance entitle Tenant to a credit against Rent payable under this Lease. Tenant shall deliver to Landlord (a) a certificate of occupancy (or its substantial equivalent) for the Premises suitable for the Permitted Use and (b) a Certificate of Substantial Completion in the form of  the American Institute of Architects document G704, executed by the project architect and the general contractor.  4.6. Prior to entering upon the Premises, Tenant shall furnish to Landlord evidence satisfactory to Landlord that insurance coverages required of Tenant under the provisions of Article 23 are in effect, and such entry shall be subject to all the terms and conditions of this Lease other than the payment of Base Rent or Tenant’s Adjusted Share of Operating Expenses (as defined below).  4.7. Landlord and Tenant shall mutually agree upon the selection of the engineers, general contractor and major subcontractors; provided that Tenant will have the right to select the general contractor pursuant to a competitive bid process using general contractors mutually approved by Landlord and Tenant. Tenant shall enter into a design contract with McFarlane Architects to act as the architect for the Tenant Improvements (and shall provide a copy of such design contract to Landlord) within two (2) business days after the Execution Date. Landlord may refuse to approve any architects, consultants, contractors, subcontractors or material suppliers that Landlord reasonably believes could cause labor disharmony or may not have sufficient experience, in Landlord’s reasonable opinion, to perform work in an occupied Class “A” laboratory research building and in lab areas.  4.8. Tenant shall pay all utility charges, together with any fees, surcharges and taxes thereon for the period beginning on the date that Landlord delivers the Premises to Tenant for Tenant’s construction of the Tenant Improvements in accordance with Section 4.1; provided, however, that Tenant shall not be responsible for any utility charges attributable to the Post- Delivery Landlord Work.  4.9. Notwithstanding anything to the contrary in this Lease or in the Work Letter, Landlord shall have no obligation to fund any portion of the TI Allowance prior to the date (the “TI Funding Date”) upon which the Clinical Trial Termination Option is waived by Tenant in 

 

10  writing or becomes void or lapses due to time. Prior to the TI Funding Date, Tenant will pay all costs associated with the Tenant Improvements as and when such amounts become due, and will ensure that all such costs are paid timely and in a manner which eliminates any risk of a lien being filed against the Building; provided that Tenant will not be permitted to commence any demolition or construction in the Premises prior to the date upon which the Clinical Trial Termination Option is waived by Tenant in writing or becomes void or lapses due to time. In the event that Tenant exercises the Clinical Trial Termination Option, Landlord shall have no obligation to fund any portion of the TI Allowance or to otherwise reimburse Tenant for any costs incurred by Tenant in connection with the Tenant Improvements, this Lease or the Premises. In the event that Tenant does not exercise the Clinical Trial Termination Option and the Clinical Trial Termination Option lapses or becomes void, all costs incurred by Tenant in connection with the Tenant Improvements shall (to the extent such costs would otherwise be chargeable against the TI Allowance pursuant to this Lease) be subject to reimbursement from the TI Allowance in accordance with the terms of the Work Letter.  5. Condition of Premises. Except as provided below, Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of the Premises, the Building or the Project, or with respect to the suitability of the Premises, the Building or the Project for the conduct of Tenant’s business. Except as provided below, Tenant acknowledges that (a) it is fully familiar with the condition of the Premises and agrees to take the same in its condition “as is” as of the date that Landlord delivers the Premises to Tenant for Tenant’s construction of the Tenant Improvements in accordance with Section 4.1, and (b) Landlord shall have no obligation to alter, repair or otherwise prepare the Premises for Tenant’s occupancy or to pay for or construct any improvements to the Premises, except with respect to the performance, at Landlord’s sole cost and expense, of the Landlord Work and payment of the Base TI Allowance and, if properly requested by Tenant pursuant to the terms of the Lease, the Additional TI Allowance. Notwithstanding anything to the contrary in this Lease, Landlord shall deliver the Premises to Tenant with (y) the Pre-Delivery Landlord Work and (z) the existing heating, ventilating and air-conditioning, electrical, plumbing and fire/life safety systems serving the Building core (but not the distribution of such systems throughout the Premises, which will be performed as part of the Tenant Improvements), the existing galvanized supply air and exhaust air duct risers, the existing roof structure, roof membrane, Building elevators and the Generator (as defined in Section 16.8) (all of the foregoing listed in this Subsection 5(z) shall be referred to herein as, the “Existing Systems”) in good  working condition and in compliance with all Applicable Laws (including, without limitation, the ADA inclusive of path of travel requirements to the extent required in order to obtain a final sign off on the permits for the Pre-Delivery Landlord Work) (the “Delivery Requirement”). Tenant’s taking of possession of the Premises shall, except as otherwise agreed to in writing by Landlord and Tenant, conclusively establish that the Premises, the Building and the Project were at such time in good, sanitary and satisfactory condition and repair and that the Delivery Requirement was satisfied; provided that, if Landlord fails to satisfy the Delivery Requirement (a “Delivery Shortfall”), then Tenant may, as its sole and exclusive remedy, deliver notice to Landlord detailing the nature of such failure (a “Shortfall Notice”); provided, further, that any Shortfall Notice must be received by Landlord no later than the date (the “Shortfall Notice Deadline”) that is thirty (30) days after the Term Commencement Date. In the event that Landlord receives a Shortfall  Notice  on  or  before  the  Shortfall  Notice  Deadline,  Landlord  shall,  at  Landlord’s 

 

11  expense, promptly remedy the Delivery Shortfall. Landlord shall not have any obligations or liabilities in connection with (aa) a failure to satisfy the Delivery Requirement except to the extent such failure is identified by Tenant in a Shortfall Notice delivered to Landlord on or before the Shortfall Notice Deadline, or (bb) any failure of the Pre-Delivery Landlord Work or the Existing Systems to be in good working condition or in compliance with Applicable Laws due to any event, circumstance or other factor arising or occurring after Landlord’s delivery of the Premises to Tenant (including, without limitation, (i) any act or omission of Tenant, Tenant’s contractors or subcontractors, or any of their respective employees, agents or invitees, (ii) the construction of the Tenant Improvements or (iii) Tenant’s failure to properly repair or maintain the Premises as required by this Lease), and no Delivery Shortfall shall be deemed to have occurred as a result thereof.  6. Rentable Area. 6.1. The term “Rentable Area” shall reflect such areas as reasonably calculated by Landlord’s architect, as the same may be reasonably adjusted from time to time by Landlord in consultation with Landlord’s architect to reflect changes to the Premises, the Building or the Project, as applicable.  6.2. The Rentable Area of the Building is generally determined by making separate calculations of Rentable Area applicable to each floor within the Building and totaling the Rentable Area of all floors within the Building. The Rentable Area of a floor is computed by measuring to the outside finished surface of the permanent outer Building walls. The full area calculated as previously set forth is included as Rentable Area, without deduction for columns and projections or vertical penetrations, including stairs, elevator shafts, flues, pipe shafts, vertical ducts and the like, as well as such items’ enclosing walls.  6.3. The term “Rentable Area,” when applied to the Premises, is that area equal to the usable area of the Premises, plus an equitable allocation of Rentable Area within each Building that is not then utilized or expected to be utilized as usable area, including that portion of the Building devoted to corridors, equipment rooms, restrooms, elevator lobby, atrium and mailroom.  6.4. the Project. The Rentable Area of the Project is the total Rentable Area of all buildings within  6.5. Review of allocations of Rentable Areas as between tenants of the Building and the Project shall be made as frequently as Landlord deems appropriate, including in order to facilitate an equitable apportionment of Operating Expenses (as defined below); provided, however, that notwithstanding Landlord’s right to review such allocations of Rentable Areas, Tenant’s Base Rent and Tenant’s Pro Rata Shares shall not be subject to increase other than in connection with an actual physical modification of the Building or Project.  If such review is by a licensed architect and allocations are certified by such licensed architect as being correct, then Tenant shall be bound by such certifications. 

 

12  7. Rent. 7.1.  Tenant shall pay to Landlord as Base Rent for the Premises, commencing on the Term Commencement Date, the sums set forth in Section 2.3, subject to the rental adjustments provided in Article 8 hereof. Base Rent shall be paid in equal monthly installments as set forth in Section 2.3, subject to the rental adjustments provided in Article 8 hereof, each in advance on the first day of each and every calendar month during the Term.  7.2. In  addition  to  Base  Rent,  Tenant  shall  pay  to  Landlord  as  additional  rent (“Additional Rent”) at times hereinafter specified in this Lease (a) Tenant’s Adjusted Share (as defined below) of Operating Expenses (as defined below), (b) the Property Management Fee (as defined below), (c) [Intentionally omitted] and (d) any other amounts that Tenant assumes or agrees to pay under the provisions of this Lease that are owed to Landlord, including any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of this Lease to be performed by Tenant, after notice and the lapse of any applicable cure periods.  7.3. Base Rent and Additional Rent shall together be denominated “Rent.”  Rent shall be paid to Landlord, without abatement, deduction or offset, in lawful money of the United States of America (i) to the address set forth in Section 2.8, (ii) via direct deposit (ACH) to a bank account designated by Landlord, or (iii) or to such other person or at such other place as Landlord may from time designate in writing. In the event the Term commences or ends on a day other than the first day of a calendar month, then the Rent for such fraction of a month shall be prorated for such period on the basis of the number of days in the month and shall be paid at the then-current rate for such fractional month.  7.4. Except as otherwise provided in this Lease, Tenant’s obligation to pay Rent shall not be discharged or otherwise affected by (a) any Applicable Laws now or hereafter applicable to the Premises, (b) any other restriction on Tenant’s use, (c) except as expressly provided herein, any casualty or taking or (d) any other occurrence; and Tenant waives all rights now or hereafter existing to terminate or cancel this Lease or quit or surrender the Premises or any part thereof, or to assert any defense in the nature of constructive eviction to any action seeking to recover rent. Tenant’s obligation to pay Rent with respect to any period or obligations arising, existing or pertaining to the period prior to the date of the expiration or earlier termination of the Term or this Lease shall survive any such expiration or earlier termination; provided, however, that nothing in this sentence shall in any way affect Tenant’s obligations with respect to any other period.  8. Rent Adjustments. Base Rent shall be subject to an annual upward adjustment of three percent (3%) of the then-current Base Rent. The first such adjustment shall become effective commencing on the first (1st) annual anniversary of the Term Commencement Date, and subsequent adjustments shall become effective on every successive annual anniversary for so long as this Lease continues in effect.  9. Operating Expenses. 9.1. As used herein, the term “Operating Expenses” shall include: 

 

13  (a) Government impositions, including property tax costs consisting of real and personal property taxes (including amounts due under any improvement bond upon the Building or the Project (including the parcel or parcels of real property upon which the Building, the other buildings in the Project and areas serving the Building and the Project are located)) or assessments in lieu thereof imposed by any federal, state, regional, local or municipal governmental authority, agency or subdivision (each, a “Governmental Authority”); taxes on or measured by gross rentals received from the rental of space in the Project; taxes based on the square footage of the Premises, the Building or the Project, as well as any parking charges, utilities surcharges or any other costs levied, assessed or imposed by, or at the direction of, or resulting from Applicable Laws or interpretations thereof, promulgated by any Governmental Authority in connection with the use or occupancy of the Project or the parking facilities serving the Project; taxes on this transaction or any document to which Tenant is a party creating or transferring an interest in the Premises; and any expenses, including the reasonable cost of attorneys or experts, reasonably incurred by Landlord in seeking reduction by the taxing authority of the applicable taxes, less tax refunds obtained as a result of an application for review thereof; and  (b) All other costs of any kind paid or incurred by Landlord in connection with the operation or maintenance of the Building and the Project (including the Amenities Center), which shall include costs of repairs and replacements to improvements within the Project as appropriate to maintain the Project as required hereunder; costs of utilities furnished to the Common Area; sewer fees; cable television; trash collection; cleaning, including windows (including those of the Amenities Center); heating, ventilation and air-conditioning; wall and window repair costs; waterproofing costs; maintenance of landscaping and grounds; snow removal; maintenance of drives and parking areas; maintenance of the roof; security services and devices; building supplies; maintenance or replacement of equipment utilized for operation and maintenance of the Project; license, permit and inspection fees; sales, use and excise taxes on goods and services purchased by Landlord in connection with the operation, maintenance or repair of the Building or Project systems and equipment; telephone, postage, stationery supplies and other expenses incurred in connection with the operation, maintenance or repair of the Project; accounting, legal and other professional fees and expenses incurred in connection with the Project; costs of furniture, draperies, carpeting, landscaping supplies, snow removal and other customary and ordinary items of personal property provided by Landlord for use in Common Area or in the Project office; capital expenditures incurred (i) in replacing obsolete equipment, (ii) for the primary purpose of reducing Operating Expenses or (iii) required by any Governmental Authority to comply with Applicable Laws that take effect or are first applicable to the Project after the Execution Date or to ensure continued compliance with Applicable Laws in effect as of the Execution Date, in each case amortized over the useful life thereof, as reasonably determined by Landlord, in accordance with generally accepted accounting principles; costs of complying with Applicable Laws (except to the extent such costs are incurred to remedy non-compliance as of the Execution Date with Applicable Laws); costs to keep the Project in compliance with, or costs or fees otherwise required under or incurred pursuant to any CC&Rs (as defined below), including condominium fees (except to the extent such costs are incurred to remedy non-compliance with any CC&Rs as of the Execution Date); insurance premiums, including premiums for commercial general liability, property casualty, earthquake, terrorism and environmental coverages; portions of insured losses paid by Landlord as part of the 

 

 deductible portion of a loss pursuant to the terms of insurance policies; service contracts; costs of services of independent contractors retained to do work of a nature referenced above; and costs of compensation (including employment taxes and fringe benefits) of all persons who perform regular and recurring duties connected with the day-to-day operation and maintenance of the Project, its equipment, the adjacent walks, landscaped areas, drives and parking areas, including janitors, floor waxers, window washers, watchmen, gardeners, sweepers, plow truck drivers, handymen, and engineering/maintenance/facilities personnel.  (c) Notwithstanding the foregoing, Operating Expenses shall not include any net income, franchise, capital stock, estate or inheritance taxes, or taxes that are the personal obligation of Tenant or of another tenant of the Project; any leasing commissions; expenses that relate to preparation of rental space for a tenant, including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for any tenants occupying space in the Project or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Project (excluding, however, such costs relating to any Common Areas of the Project or parking facilities); expenses of initial development, construction and initial or future leasing of the Project, including grading, paving, landscaping and decorating (as distinguished from maintenance, repair and replacement of the foregoing), marketing costs, legal fees, accounting fees, space planners' fees, advertising and promotional expenses, lease negotiation, lease enforcement, and brokerage and finders' fees incurred in connection therewith; costs incurred by Landlord with respect to the Delivery Requirement; costs incurred by Landlord with respect to any Delivery Shortfall; expenses related to disputes with other tenants; costs of repairs to the extent reimbursed by payment of insurance proceeds received by Landlord; interest, points, fees and principal payments related to loans to Landlord or secured by a loan agreement, mortgage, deed of trust, security instrument or other loan document covering the Project or a portion thereof (collectively, “Loan Documents”) (provided that interest upon a government assessment or improvement bond payable in installments shall constitute an Operating Expense under Subsection 9.1(a)); salaries, wages and benefits of employees of Landlord; depreciation claimed by Landlord for tax purposes (provided that this exclusion of depreciation is not intended to delete from Operating Expenses actual costs of repairs and replacements that are provided for in Subsection 9.1(b)); taxes that are excluded from Operating Expenses by the last sentence of Subsection 9.1(a); reserves for future capital replacements; costs to repair the structural portions of the Building or foundations; costs or expenses incurred in connection with the financing or sale of the Project or any portion thereof; costs expressly excluded from Operating Expenses elsewhere in this Lease or that are charged to or paid by Tenant under other provisions of this Lease; professional fees and disbursements and other costs and expenses related to the ownership (as opposed to the use, occupancy, operation, maintenance or repair) of the Project; any balloons, flowers or other gifts provided to any entity whatsoever, to include, but not limited to, Tenant, other tenants, employees, vendors, contractors, prospective tenants and agents; any “above standard” cleaning costs caused by another tenant and relating to the Common Areas of the Project, including, but not limited to, construction cleanup or special cleanings associated with parties/events and specific tenant requirements, including related trash collection, removal, hauling and dumping; any “validated” parking for any entity; costs of any “tap fees” or any sewer or water connection fees for the benefit of any particular tenant in the Project; overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in the Project to the extent the  14 

 

 same exceeds the typical costs of such services rendered by qualified, "first-class" unaffiliated third parties on a competitive basis; rentals and other related expenses incurred in leasing HVAC systems, elevators or other items or equipment which if purchased, rather than rented, the cost of which would be excluded from Operating Expenses as a capital cost, except equipment not affixed to the Project which is used in providing janitorial or similar services to the Common Areas of the Project, and, further excepting from this exclusion such equipment rented or leased to remedy or ameliorate an emergency condition in the Project; costs, other than those incurred in ordinary maintenance and repair, for sculpture, paintings, fountains or other objects of art in the Common Areas of the Project; costs, including rent, associated with maintaining a leasing or marketing office (as opposed to a management office) for the Project, and rent for any office space occupied by Project management personnel to the extent (1) the size of such office space exceeds the size of office space occupied by management personnel of the comparable buildings, with adjustment where appropriate for the size of the applicable project, (2) the rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of the comparable buildings, with adjustment where appropriate for the size of the applicable project; costs to the extent resulting from the gross negligence, willful misconduct or illegal acts of Landlord; costs resulting from the presence of Hazardous Materials at the Project in violation of Applicable Laws as of the Execution Date, unless placed at the Project by a Tenant Party; and costs incurred to remove, remedy, contain, or treat any Hazardous Material brought into the Building or onto the Project after the Execution Date by Landlord; costs (including, without limitation, fines, penalties, interest, and costs of repairs, replacements, alterations and/or improvements) incurred to correct violations of Applicable Laws existing as of the Execution Date, including, without limitation, any costs to correct building code violations pertaining to the initial design or construction of the Building or any other improvements to the Project, to the extent such violations exist as of the Execution Date under Applicable Laws; any reserves of any kind, including, without limitation, replacement reserves, operating reserves, reserves required by lenders or partners, reserves for bad debts or lost rent or any similar charge; any costs relating to signage for another tenant of the Project; taxes, fees, charges or other penalties incurred as a result of Landlord's failure, inability or unwillingness to make payments when  due  and  penalties  and  fines  imposed  by  governmental  authorities  due  to  the  gross negligence  or  willful  misconduct  of  Landlord; any  advertising  or  promotional  expenditures account; any costs of any parties, ceremonies or other events for tenants, Landlord, Landlord's affiliates or other third parties and any expenses incurred by Landlord for use of any portions of the Project to accommodate filming or photography beyond the normal expenses otherwise attributable to providing services, such as lighting and HVAC to such public portions of the Project in normal Project operations during standard hours of operation for the Project; any costs or expenses incurred by Landlord in connection with satellite dishes or similar specialized communications equipment of third parties, tenants or occupants in or about the Project; and any item that, if included in Operating Expenses, would involve a double collection for such item by Landlord (including office rent for any property management office and expenses for which Landlord is actually reimbursed or which are paid directly to the provider by any retail occupant of the Project (e.g., utilities paid directly to the utility provider)); capital expenditures other than those specifically authorized by subheadings (i)-(iii) in Article 9.1(b) above; costs for which Landlord is actually reimbursed by other tenants or third parties; costs incurred in connection with Landlord’s efforts to lease other space at the Project; expenses related to bad debt loss, rent loss, or reserves for bad debts or rent loss; any costs unrelated to the Project and/or relating to 15 

 

 the business of Landlord generally (as opposed to costs relating to the operation of the Project); and costs relating to charitable and political contributions). To the extent that Tenant uses more than Tenant’s Pro Rata Share of any item of Operating Expenses, Tenant shall pay Landlord for such excess in addition to Tenant’s obligation to pay Tenant’s Pro Rata Share of Operating Expenses (such excess, together with Tenant’s Pro Rata Share, “Tenant’s Adjusted Share”).  9.2. Tenant shall pay to Landlord on the first day of each calendar month of the Term, as Additional Rent, (a) the Property Management Fee (as defined below), (b) [Intentionally omitted] and (c) Landlord’s estimate of Tenant’s Adjusted Share of Operating Expenses with respect to the Building and the Project, as applicable, for such month.  (w) The “Property Management Fee” shall equal three percent (3%) of Base Rent due from Tenant. Tenant shall pay the Property Management Fee in accordance with Section 9.2 with respect to the entire Term, including any extensions thereof or any holdover periods, regardless of whether Tenant is obligated to pay Base Rent, Operating Expenses or any other Rent with respect to any such period or portion thereof. For the first eight (8) months of the Term, the Property Management Fee shall be calculated as if Tenant were paying Three Hundred Two Thousand Nine Hundred Seventy-Nine and 20/100 Dollars ($302,979.20) per month for Base Rent.  (x) [Intentionally omitted]  (y) Within ninety (90) days after the conclusion of each calendar year (or such longer period as may be reasonably required by Landlord), Landlord shall furnish to Tenant a statement showing in reasonable detail the actual Operating Expenses, Tenant’s Adjusted Share of Operating Expenses, and the cost of providing utilities to the Premises for the previous calendar year (“Landlord’s Statement”). Any additional sum due from Tenant to Landlord shall be due and payable within thirty (30) days after receipt of an invoice therefor. If the amounts paid by Tenant pursuant to this Section exceed Tenant’s Adjusted Share of Operating Expenses for the previous calendar year, then Landlord shall credit the difference against the Rent next due and owing from Tenant; provided that, if the Lease term has expired, Landlord shall accompany Landlord’s Statement with payment for the amount of such difference.  (z) Any amount due under this Section for any period that is less than a full month shall be prorated for such fractional month on the basis of the number of days in the month.  9.3. Landlord may, from time to time, modify Landlord’s calculation and allocation procedures  for  Operating  Expenses,  so  long  as  such  modifications  produce  Dollar  results substantially consistent with Landlord’s then-current practice at the Project. Landlord or an affiliate(s)  of  Landlord  currently  own  other  property(ies)  adjacent  to  the  Project  or  its neighboring properties (collectively, “Neighboring Properties”).  In connection with Landlord performing services for the Project pursuant to this Lease, similar services may be performed by the same vendor(s) for Neighboring Properties. In such a case, Landlord shall reasonably allocate to each Building and the Project the costs for such services based upon the ratio that the square footage of the Building or the Project (as applicable) bears to the total square footage of all of the Neighboring Properties or buildings within the Neighboring Properties for which the 16 

 

 services are performed, unless the scope of the services performed for any building or property (including the Building and the Project) is disproportionately more or less than for others, in which case Landlord shall equitably allocate the costs based on the scope of the services being performed for each building or property (including the Building and the Project). Since the Project consists of multiple buildings, certain Operating Expenses may pertain to a particular building(s) and other Operating Expenses to the Project as a whole. Landlord reserves the right in its reasonable discretion to allocate any such costs applicable to any particular building within the Project to such building, and other such costs applicable to the Project to each building in the Project (including the Building), with the tenants in each building being responsible for paying their respective proportionate shares of their buildings to the extent required under their leases. Landlord shall allocate such costs to the buildings (including the Building) in a reasonable, non- discriminatory manner, and such allocation shall be binding on Tenant.  9.4. Landlord's annual statement shall be final and binding upon Tenant unless Tenant, within six (6) months after Tenant's receipt thereof, shall contest any item therein by giving written notice to Landlord; provided that Tenant shall in all events pay the amount specified in Landlord's annual statement, pending the results of the Independent Review and determination of the Accountant(s), as applicable and as each such term is defined below. If, during such six (6) month period, Tenant reasonably and in good faith questions or contests the correctness of Landlord's statement of Tenant's Share of Operating Expenses, Landlord shall provide Tenant with reasonable access to Landlord's books and records to the extent relevant to determination of Operating Expenses, and such information that is reasonably responsive to Tenant's written inquiries. In the event that, after Tenant's review of such information, Landlord and Tenant cannot agree upon the amount of Tenant's Share of Operating Expenses, then Tenant shall have the right to have an independent public accounting firm hired by Tenant on an hourly basis and not on a contingent-fee basis (at Tenant's sole cost and expense) and approved by Landlord (which approval Landlord shall not unreasonably withhold or delay) audit and review such of Landlord's books and records for the year in question as directly relate to the determination of Operating Expenses for such year (the "Independent Review"), but not books and records of entities other than Landlord. Landlord shall make such books and records available at the location where Landlord maintains them in the ordinary course of its business. Landlord need not provide copies of any books or records. Tenant shall commence the Independent Review within fifteen (15) days after the date Landlord has given Tenant access to Landlord's books and records for the Independent Review. Tenant shall complete the Independent Review and notify Landlord in writing of Tenant's specific objections to Landlord's calculation of Operating Expenses (including Tenant's accounting firm's written statement of the basis, nature and amount of each proposed adjustment) no later than sixty (60) days after Landlord has first given Tenant access to Landlord's books and records for the Independent Review. Landlord shall review the results of any such Independent Review. The parties shall endeavor to agree promptly and reasonably upon Operating Expenses taking into account the results of such Independent Review. If, as of sixty (60) days after Tenant has submitted the Independent  Review  to Landlord, the parties have not agreed on the appropriate adjustments to Operating Expenses, then the parties shall engage a mutually agreeable independent third party accountant with at least ten (10) years' experience in commercial real estate accounting in the San Diego area (the "Accountant"). If the parties cannot agree on the Accountant, each shall within ten (10) days after such impasse appoint an Accountant (different from the accountant and accounting firm  17 

 

 that conducted the Independent Review) and, within ten (10) days after the appointment of both such Accountants, those two Accountants shall select a third (which cannot be the accountant and accounting firm that conducted the Independent Review). If either party fails to timely appoint an Accountant, then the Accountant the other party appoints shall be the sole Accountant. Within ten (10) days after appointment of the Accountant(s), Landlord and Tenant shall each simultaneously give the Accountants (with a copy to the other party) its determination of Operating Expenses, with such supporting data or information as each submitting party determines appropriate. Within ten (10) days after such submissions, the Accountants shall by majority vote select either Landlord's or Tenant's determination of Operating Expenses. The Accountants may not select or designate any other determination of Operating Expenses. The determination of the Accountant(s) shall bind the parties. If the parties agree or the Accountant(s) determine that the Operating Expenses actually paid by Tenant for the calendar year in question exceeded Tenant's obligations for such calendar year, then Landlord shall, at Tenant's option, either (a) credit the excess to the next succeeding installments of estimated Additional Rent or (b) pay the excess to Tenant within thirty (30) days after delivery of such results. If the parties agree or the Accountant(s) determine that Tenant's payments of Operating Expenses for such calendar year were less than Tenant's obligation for the calendar year, then Tenant shall pay the deficiency to Landlord within thirty (30) days after delivery of such results. If the Independent Review reveals or the Accountant(s) determine that the Operating Expenses billed to Tenant by Landlord and paid by Tenant to Landlord for the applicable calendar year in question exceeded by more than five percent (5%) what Tenant should have been billed during such calendar year, then Landlord shall pay the reasonable cost of the Independent Review and the reasonable cost of the Accountant(s). In all other cases Tenant shall pay the cost of the Independent Review and the Accountant(s).  9.5. Notwithstanding anything to the contrary in this Lease, the aggregate Controllable Operating Expenses (as defined below) shall not increase by more than five percent (5%) in any calendar year over the amount of Controllable Operating Expenses actually charged to Tenant for the immediately preceding calendar year (the “Cap”), beginning with the 2019 calendar year’s Operating Expenses (i.e., comparing 2018 to 2019 (on a prorated basis, if necessary)). For the avoidance of doubt, the Cap shall apply to each year of the Term beginning with the calendar year 2019, so that Controllable Operating Expenses for calendar year 2019 shall not exceed one hundred five percent (105%) of Controllable Operating Expenses actually charged for calendar year 2018 (on a prorated basis, if necessary), Controllable Operating Expenses for calendar year 2020 shall not exceed one hundred five percent (105%) of Controllable Operating Expenses actually charged for 2019, etc. “Controllable Operating Expenses” means all Operating Expenses except property taxes and assessments, capital expenditures that are reasonably required, costs for repairs and maintenance (excluding preventative maintenance), utility charges, insurance charges, costs of services provided under a union contract, payments under covenants, conditions and restrictions or to an owners’ association and costs associated with repairs due to casualty, vandalism or other cause outside of Landlord’s reasonable control.  9.6. Tenant shall not be responsible for Operating Expenses with respect to any time period prior to the Term Commencement Date; provided, however, that if Tenant substantially completes the Tenant Improvements and occupies the Premises for the conduct of its business prior to the Term Commencement Date, Tenant shall be responsible for Operating Expenses  18 

 

19  from such earlier date of possession (the Term Commencement Date or such earlier date, as applicable, the “Expense Trigger Date”); and provided, further, that Landlord may annualize certain Operating Expenses incurred prior to the Expense Trigger Date over the course of the budgeted year during which the Expense Trigger Date occurs, and Tenant shall be responsible for the annualized portion of such Operating Expenses corresponding to the number of days during such year, commencing with the Expense Trigger Date, for which Tenant is otherwise liable for Operating Expenses pursuant to this Lease. Tenant’s responsibility for Tenant’s Adjusted Share of Operating Expenses shall continue to the latest of (a) the date of termination of the Lease, (b) the date Tenant has fully vacated the Premises and (c) if termination of the Lease is due to a default by Tenant, the date that is the later of (i) the scheduled expiration date of this Lease (as of the date of such default) and (ii) the rental commencement of a replacement tenant.  9.7. Operating Expenses for the calendar year in which Tenant’s obligation to share therein commences and for the calendar year in which such obligation ceases shall be prorated based on the actual number of days applicable to Tenant’s obligation during such calendar year. Expenses such as taxes, assessments and insurance premiums that are incurred for an extended time period shall be prorated based upon the time periods to which they apply so that the amounts attributed to the Premises relate in a reasonable manner to the time period wherein Tenant has an obligation to share in Operating Expenses.  9.8. Within thirty (30) days after the end of each calendar month, Tenant may submit to Landlord an invoice, or, in the event an invoice is not available, an itemized list, of all costs and expenses that (a) Tenant has incurred (either internally or by employing third parties) during the prior month and (b) for which Tenant reasonably believes it is entitled to reimbursements from Landlord pursuant to the terms of this Lease or that Tenant reasonably believes is the responsibility of Landlord pursuant to this Lease or the Work Letter.  9.9. In the event that the Project is less than fully occupied during a calendar year, Tenant acknowledges that Landlord may extrapolate Operating Expenses that vary depending on the occupancy of the Project, as applicable, to equal Landlord’s reasonable estimate of what such Operating Expenses would have been had the Project, as applicable, been ninety-five percent (95%) occupied during such calendar year; provided, however, that Landlord shall not recover more than one hundred percent (100%) of Operating Expenses.  10. Taxes on Tenant’s Property.  10.1. Tenant shall be solely responsible for the payment of any and all taxes levied upon (a) personal property and trade fixtures located at the Premises and (b) any gross or net receipts of or sales by Tenant, and shall pay the same prior to delinquency.  10.2. If any such taxes on Tenant’s personal property or trade fixtures are levied against Landlord or Landlord’s property or, if the assessed valuation of the Building, the Property or the Project is increased by inclusion therein of a value attributable to Tenant’s personal property or trade fixtures, and if Landlord, after written notice to Tenant, pays the taxes based upon any such increase in the assessed value of the Building, the Property or the Project, then Tenant shall, upon demand, repay to Landlord the taxes so paid by Landlord. 

 

20  10.3. If  any  improvements  in  or  alterations  to  the  Premises,  whether  owned  by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which improvements conforming to Landlord’s building standards (the “Building Standard”) in other spaces in the Building are assessed, then the real property taxes and assessments levied against Landlord or the Building, the Property or the Project by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 10.2. Any such excess assessed valuation due to improvements in or alterations to space in the Project leased by other tenants at the Project shall not be included in Operating Expenses. If the records of the applicable governmental assessor’s office are available and sufficiently detailed to serve as a basis for determining whether such Tenant improvements or alterations are assessed at a higher valuation than the Building Standard, then such records shall be binding on both Landlord and Tenant.  11. Security Deposit. 11.1. Tenant shall deposit with Landlord on or before the Execution Date,  the sum of Three Hundred Two Thousand Nine Hundred Seventy-Nine and 20/100 Dollars ($302,979.20) toward the Security Deposit set forth in Section 2.6. Within five (5) business days after the earlier of (i) the Clinical Trial Termination Outside Date or (ii) the date Tenant waives the Clinical Trial Termination Option, Tenant will deposit the remaining Six Hundred Five Thousand Nine Hundred Fifty-Eight and 40/100 Dollars ($605,958.40) (which, together with the initial payment above, shall be collectively referred to as the “Security Deposit”). The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, restore the Security Deposit to the amount then required hereunder, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME.  11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings.  11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 

 

21  11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease.  11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit.  11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows:  (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall with reasonable diligence complete any necessary calculations, (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s actual third-party legal costs in handling any dispute or draw request relating to Tenant’s L/C Security, if any.  (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held.  (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if (i) an uncured 

 

 Default (as defined below) exists, (ii) as of the date that is forty-five (45) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date that is one year after the then-current expiry date of the L/C Security, (iii) the L/C Security provides for automatic renewals, Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days, (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security (and fails to permit drawing upon the L/C Security by overnight courier or facsimile). This Section does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances.  (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous.  (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within five (5) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security Deposit changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.  11.7 Notwithstanding anything to the contrary contained in this Section 11, in the event that Tenant, at the expiration of the twenty-fourth (24th) month of the initial Term, is not in Default of any of its obligations under this Lease, and has not been in Default of any of its obligations under this Lease at any time during the previous twelve (12) month period, Landlord shall reduce the amount of the Security Deposit by Three Hundred Two Thousand Nine Hundred Seventy-Nine and 20/100 Dollars ($302,979.20) and Landlord shall, at  Tenant’s option either apply such amount against Tenant's monthly Base Rent obligation for the twenty- fifth (25h) month of the initial Term or refund such amount to Tenant within thirty (30) days. Further, in the event that Tenant, at the expiration of the sixtieth (60th) month of the initial Term, is not in default of any of its obligations under this Lease, and has not been in default of any of its obligations under this Lease at any time during the previous twelve (12) month period, Landlord shall further reduce the amount of the Security Deposit by Three Hundred Two Thousand Nine Hundred Seventy-Nine and 20/100 Dollars ($302,979.20) and Landlord shall, at Tenant’s option either apply such amount against Tenant's monthly Base Rent obligation for the sixty-first (61st) month of the initial Term or refund such amount to Tenant within thirty (30) days.  22 

 

 12. Use. 12.1.  Tenant  shall  use  the  Premises  for  the  Permitted  Use,  and  shall  not  use  the Premises, or permit or suffer the Premises to be used, for any other purpose without Landlord’s prior written consent, which consent Landlord may withhold in its sole and absolute discretion.  12.2. Tenant shall not use or occupy the Premises in violation of Applicable Laws; zoning ordinances; or the certificate of occupancy (or its substantial equivalent) issued for the Building or the Project, and shall, upon ten (10) days’ written notice from Landlord, discontinue any use of the Premises that is, or is declared or claimed by any Governmental Authority having jurisdiction to be a violation of any of the above. Tenant shall comply with any direction of any Governmental Authority having jurisdiction that shall, by reason of the nature of Tenant’s use or occupancy of the Premises, impose any duty upon Tenant or Landlord with respect to the Premises or with respect to the use or occupation thereof, and shall indemnify, defend (at the option of and with counsel reasonably acceptable to the indemnified party(ies)), save, reimburse and hold harmless (collectively, “Indemnify,” “Indemnity” or “Indemnification,” as the case may require) the Landlord and its affiliates, employees, agents and contractors; and any lender, mortgagee, ground lessor or beneficiary (each, a “Lender” and, collectively with Landlord and its affiliates, employees, agents and contractors, the “Landlord Indemnitees”) harmless from and against any and all demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages, suits or judgments, and all reasonable expenses (including reasonable attorneys’ fees, charges and disbursements, regardless of whether the applicable demand, claim, action, cause of action or suit is voluntarily withdrawn or dismissed) incurred in investigating or resisting the same (collectively, “Claims”) of any kind or nature that arise before, during or after the Term as a result of Tenant’s breach of this Section.  12.3. Tenant shall not do or permit to be done anything that will invalidate or increase the cost of any fire, environmental, extended coverage or any other insurance policy covering the Building or the Project, and shall comply with all rules, orders, regulations and requirements of the insurers of the Building and the Project, and Tenant shall promptly, upon demand, reimburse Landlord for any additional premium charged for such policy by reason of Tenant’s failure to comply with the provisions of this Article.  12.4. Tenant shall keep all doors opening onto public corridors closed, except when in use for ingress and egress.  12.5. No additional locks or bolts of any kind shall be placed upon any of the doors or windows by Tenant, nor shall any changes be made to existing locks or the mechanisms thereof (including card readers) without Landlord’s prior written consent. Tenant shall, upon termination of this Lease, return to Landlord all keys or other opening mechanisms to offices and restrooms either furnished to or otherwise procured by Tenant. In the event any key so furnished to Tenant is lost, Tenant shall pay to Landlord the cost of replacing the same or of changing the lock or locks opened by such lost key if Landlord shall deem it necessary to make such change.  12.6. No awnings or other projections shall be attached to any outside wall of the Building. No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Premises other than Landlord’s standard window  23 

 

 coverings. Neither the interior nor exterior of any windows shall be coated or otherwise sunscreened without Landlord’s prior written consent, nor shall any bottles, parcels or other articles be placed on the windowsills or items attached to windows that are visible from outside the Premises. No equipment, furniture or other items of personal property shall be placed on any exterior balcony without Landlord’s prior written consent. Notwithstanding any of the above, Tenant may deviate from this Section with Landlord’s prior written consent (which may be given or withheld in Landlord’s sole and absolute discretion); provided, however, that if such deviations were part of the Approved Plans, then no further Landlord consent will be required.  12.7. No  sign,  advertisement  or  notice  (“Signage”)  shall  be  exhibited,  painted  or affixed by Tenant to the exterior of the Building without Landlord’s prior written consent; provided, however, that Landlord acknowledges that Tenant shall be entitled to the following Signage (subject to compliance with all Applicable Laws and Tenant’s receipt of all necessary approvals and permits): (i) Building top, (ii) lobby, (iii) directory, and (iv) suite  signage. Landlord shall not unreasonably withhold its consent to any Signage on or in the Building that complies with Applicable Laws; provided,  however, that Landlord’s approval shall not be required for Signage that is not visible from the exterior of the Building. Signage shall conform to Landlord’s design criteria.  For any Signage, Tenant shall, at Tenant’s own cost and expense, (a) acquire all permits for such Signage in compliance with Applicable Laws and (b) design, fabricate, install and maintain such Signage in a first-class condition. Tenant shall be responsible for reimbursing Landlord for reasonable, out-of-pocket costs incurred by Landlord in removing any of Tenant’s Signage upon the expiration or earlier termination of the Lease. Interior signs on entry doors to the Premises and the directory tablet (if any) shall be inscribed, painted or affixed for Tenant by Landlord at Tenant’s sole cost and expense, and shall be of a size, color and type and be located in a place reasonably acceptable to Landlord. The directory tablet shall be provided exclusively for the display of the name and location of tenants only. Tenant shall not place anything on the exterior of the corridor walls or corridor doors other than Landlord’s standard lettering. Upon Tenant’s request, Landlord may install any Tenant Signage, and Tenant shall pay all costs associated with such installation within thirty (30) days after receipt of an invoice.  12.8. Tenant  may  only  place  equipment  within  the  Premises  with  floor  loading consistent with the Building’s structural design unless Tenant obtains Landlord’s prior written approval. Tenant may place such equipment only in a location designed to carry the weight of such equipment.  12.9. Tenant shall cause any equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations therefrom from extending into the Common Area or other offices in the Project.  12.10. Tenant shall not (a) do or permit anything to be done in or about the Premises that shall in any way obstruct or interfere with the rights of other tenants or occupants of the Project, or injure or annoy them, (b) use or allow the Premises to be used for immoral, unlawful or objectionable purposes, (c) cause, maintain or permit any nuisance or waste in, on or about the Project or (d) take any other action that would in Landlord’s reasonable determination in any manner adversely affect other tenants’ quiet use and enjoyment of their space or adversely  24 

 

 impact their ability to conduct business in a professional and suitable work environment. Notwithstanding anything in this Lease to the contrary, Tenant may not install any security systems (including cameras) outside the Premises or that record sounds or images outside the Premises (collectively, “Security Cameras”) without Landlord’s prior written consent, which Landlord may withhold in its sole and absolute discretion Notwithstanding the foregoing, Landlord will not unreasonably withhold consent to the installation of Security Cameras which monitor access points to, and the immediate perimeter of, the Building only; provided, however, that (i) any such Security Cameras shall comply with all Applicable Laws (including all surveillance notification procedures required thereby), (ii) the cost of any repair, maintenance and replacement of any such Security Cameras shall be Tenant’s sole responsibility, (iii) upon Landlord’s request, Landlord shall have the right to view and obtain a copy of any footage recorded by any such Security Cameras, (iv) the installation and use of any such Security Cameras shall be subject to all applicable provisions of this Lease (including, without limitation, Article 17) and (v) Tenant shall indemnify, save, defend (at Landlord’s option and with counsel reasonably acceptable to Landlord) and hold the Landlord Indemnitees harmless from and against any and all Claims arising directly or indirectly out of, or in any way related to (x) any such Security Cameras, (y) Tenant’s use, misuse or nonuse of any such Security Cameras, or (z) any footage recorded or not recorded by any such Security Cameras.  12.11. Notwithstanding  any  other  provision  herein  to  the  contrary  (but  subject  to Landlord’s performance and satisfaction of the Delivery Requirement), Tenant shall be responsible for all liabilities, costs and expenses arising out of or in connection with the compliance of the Premises with the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., and any state and local accessibility laws, codes, ordinances and rules (collectively, and together with regulations promulgated pursuant thereto, the “ADA”), and Tenant shall Indemnify the Landlord Indemnitees from and against Claims arising out of any such failure of the Premises to comply with the ADA. The Premises have not undergone inspection by a Certified Access Specialist (as defined in California Civil Code Section 55.52). For the avoidance of doubt, “Lenders” shall also include historic tax credit investors and new market tax credit investors. The provisions of this Section shall survive the expiration or earlier termination of this Lease.  12.12. Tenant shall maintain temperature and humidity in the Premises in accordance with ASHRAE standards at all times.  13. Rules and Regulations, CC&Rs, Parking Facilities and Common Area. 13.1. Tenant shall have the non-exclusive right, in common with others, to use the Common Area in conjunction with Tenant’s use of the Premises for the Permitted Use, and such use of the Common Area and Tenant’s use of the Premises shall be subject to the rules and regulations adopted by Landlord and attached hereto as Exhibit F, together with such other reasonable and nondiscriminatory rules and regulations as are hereafter promulgated by Landlord in its sole and absolute discretion (the “Rules and Regulations”). Tenant shall and shall ensure that its contractors, subcontractors, employees, subtenants and invitees faithfully observe and comply with the Rules and Regulations. Landlord shall not be responsible to Tenant for the violation or non-performance by any other tenant or any agent, employee or invitee thereof of any of the Rules and Regulations.   25 

 

 13.2. This Lease is subject to any recorded covenants, conditions or restrictions on the Project or Property, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time (the “CC&Rs”). Tenant shall, at its sole cost and expense, comply with the CC&Rs.  13.3. Tenant shall have a non-exclusive, irrevocable license to use Tenant’s Pro Rata Share of parking facilities serving the Project, which shall not be less than three (3) parking spaces per 1,000 usable square feet of the Premises, in common on an unreserved basis with other tenants of the Project during the Term at no additional cost. Tenant shall have the right to designate up to twelve (12) spaces in the parking facility serving the Building at a location reasonably approved by Landlord to be marked as reserved for visitors, carpools or loading.  13.4. Tenant agrees not to unreasonably overburden the parking facilities and agrees to cooperate with Landlord and other tenants in the use of the parking facilities. Nothing in this Section, however, is intended to create an affirmative duty on Landlord’s part to monitor parking.  14. Project Control by Landlord. 14.1. Landlord reserves full control over the Building and the Project to the extent not inconsistent with Tenant’s enjoyment of the Premises as provided by this Lease. This reservation includes Landlord’s right to subdivide the Project; convert the Building and other buildings within the Project to condominium units; change the size of the Project by selling all or a portion of the Project or adding real property and any improvements thereon to the Project; grant easements and licenses to third parties; maintain or establish ownership of the Building separate from fee title to the Property; make additions to or reconstruct portions of the Building and the Project; install, use, maintain, repair, replace and relocate for service to the Premises and other parts of the Building or the Project pipes, ducts, conduits, wires and appurtenant fixtures, wherever located in the Premises, the Building or elsewhere at the Project; and alter or relocate any other Common Area or facility, including private drives, lobbies, entrances and landscaping; provided, however, that such rights shall be exercised in a way that does not materially adversely affect Tenant’s rights or obligations under the Lease, including the Permitted Use and Tenant’s access to the Premises.  14.2. Landlord  shall  have  the  right  to  access  areas  of  the  Premises  necessary  for utilities, services, safety and operation of the Building.  14.3. Tenant shall, at Landlord’s request, promptly execute such further documents as may be reasonably appropriate to assist Landlord in the performance of its obligations hereunder; provided that Tenant need not execute any document that creates additional liability for Tenant or that deprives Tenant of the quiet enjoyment and use of the Premises as provided for in this Lease.  14.4. Landlord may, at any and all reasonable times during non-business hours (or during business hours, if (a) with respect to Subsections 14.4(u) through 14.4(y), Tenant so requests, and (b) with respect to Subsection 14.4(z), if Landlord so requests), and upon one (1) business days’ prior notice (which may be oral or by email to the office manager or other  26 

 

27  Tenant-designated individual at the Premises; but provided that no time restrictions shall apply or advance notice be required if an emergency necessitates immediate entry), enter the Premises to (u) inspect the same and to determine whether Tenant is in compliance with its obligations hereunder, (v) supply any service Landlord is required to provide hereunder, (w) alter, improve or repair any portion of the Building other than the Premises for which access to the Premises is reasonably necessary, (x) post notices of nonresponsibility, (y) access the telephone equipment, electrical substation and fire risers and (z) show the Premises to prospective tenants during the final year of the Term and current and prospective purchasers and lenders at any time. In connection with any such alteration, improvement or repair as described in Subsection 14.4(w), Landlord may erect in the Premises or elsewhere in the Project scaffolding and other structures reasonably required for the alteration, improvement or repair work to be performed. In no event shall Tenant’s Rent abate as a result of Landlord’s activities pursuant to this Section; provided, however, that all such activities shall be conducted in such a manner so as to cause as little interference to Tenant as is reasonably possible. Landlord shall at all times retain a key with which to unlock all of the doors in the Premises. If an emergency necessitates immediate access to the Premises, Landlord may use whatever force is necessary to enter the Premises, and any such entry to the Premises shall not constitute a forcible or unlawful entry to the Premises, a detainer of the Premises, or an eviction of Tenant from the Premises or any portion thereof.  15. Quiet Enjoyment . Landlord covenants that Tenant, upon paying the Rent and performing its obligations contained in this Lease, may peacefully and quietly have, hold and enjoy the Premises, free from any claim by Landlord or persons claiming under Landlord, but subject to all of the terms and provisions hereof, provisions of Applicable Laws and rights of record to which this Lease is or may become subordinate. This covenant is in lieu of any other quiet enjoyment covenant, either express or implied.  16. Utilities and Services. 16.1. Tenant shall pay for all water (including the cost to service, repair and replace reverse osmosis, de-ionized and other treated water), gas, heat, light, power, telephone, internet service, cable television, other telecommunications and other utilities supplied to the Premises, together with any fees, surcharges and taxes thereon. If any such utility is not separately metered to Tenant, Tenant shall pay Tenant’s Adjusted Share of all charges of such utility jointly metered with other premises as Additional Rent or, in the alternative, Landlord may, at its option, monitor the usage of such utilities by Tenant and charge Tenant with the cost of such usage, which cost shall be paid by Tenant as Additional Rent. Landlord may base its bills for utilities on reasonable estimates; provided that Landlord adjusts such billings promptly thereafter or as part of the next Landlord’s Statement to reflect the actual cost of providing utilities to the Premises. To the extent that Tenant uses more than Tenant’s Pro Rata Share of any utilities, then Tenant shall pay Landlord for Tenant’s Adjusted Share of such utilities to reflect such excess. In the event that the Project is less than fully occupied during a calendar year, Tenant acknowledges that Landlord may extrapolate utility usage that varies depending on the occupancy of the Project (as applicable) to equal Landlord’s reasonable estimate of what such utility usage would have been had the Project, as applicable, been ninety-five percent  (95%)  occupied  during  such calendar year; provided, however, that Landlord shall not recover more than one hundred percent (100%) of the cost of such utilities. 

 

28  16.2. Landlord shall not be liable for, nor shall any eviction of Tenant result from, the failure to furnish any utility or service, whether or not such failure is caused by accidents; breakage; casualties (to the extent not caused by the party claiming Force Majeure); Severe Weather Conditions (as defined below); physical natural disasters (but excluding weather conditions that are not Severe Weather Conditions); strikes, lockouts or other labor disturbances or labor disputes (other than labor disturbances and labor disputes resulting solely from the acts or omissions of the party claiming Force Majeure); acts of terrorism; riots or civil disturbances; wars or insurrections; shortages of materials (which shortages are not unique to the party claiming Force Majeure); government regulations, moratoria or other governmental actions, inactions or delays; failures to grant consent or delays in granting consent by any Lender whose consent is required under any applicable Loan Document; failures by third parties to deliver gas, oil or another suitable fuel supply, or inability of the party claiming Force Majeure, by exercise of reasonable diligence, to obtain gas, oil or another suitable fuel; or other causes beyond the reasonable control of the party claiming that Force Majeure has occurred (collectively, “Force Majeure”). In the event of such failure, Tenant shall not be entitled to termination of this Lease or any abatement or reduction of Rent, nor shall Tenant be relieved from the operation of any covenant or agreement of this Lease. “Severe Weather Conditions” means weather conditions that are materially worse than those that reasonably would be anticipated for the Property at the applicable time based on historic meteorological records. Notwithstanding anything to the contrary in this Lease, if, for more than ten (10) consecutive business days following written notice to Landlord and as a direct result of Landlord’s gross negligence or willful misconduct (and except to the extent that such failure is caused by any other factor, including any action or inaction of a Tenant Party (as defined below)), the provision of HVAC (as defined below) or other utilities to all or a material portion of the Premises that Landlord must provide pursuant to this Lease is interrupted (a “Material Services Failure”), then Tenant’s Base Rent and Operating Expenses (or, to the extent that less than all of the Premises are affected, a proportionate amount (based on the Rentable Area of the Premises that is rendered unusable) of Base Rent and Operating Expenses) shall thereafter be abated until the Premises are again usable by Tenant for the Permitted Use; provided, however, that, if Landlord is diligently pursuing the restoration of such HVAC and other utilities and Landlord provides substitute HVAC and other utilities reasonably suitable for Tenant’s continued use and occupancy of the Premises for the Permitted Use (e.g., supplying potable water or portable air conditioning equipment), then neither Base Rent nor Operating Expenses shall be abated. Notwithstanding the foregoing, in the event that Landlord fails to remedy a Material Services Failure within thirty (30) days after Landlord’s receipt of notice of a Material Services Failure (or,  if  such  repair  or  maintenance  cannot reasonably be completed within such period, within the period of time reasonably required (so long as Landlord begins such repair or maintenance within such period and diligently prosecutes the same to completion)), Tenant shall have the right to remedy such Material Services Failure subject to the terms, conditions and provisions of Section 18.5 below. During any Material Services Failure, Tenant will cooperate with Landlord to arrange for the provision of any interrupted utility services on an interim basis via temporary measures until final corrective measures can be accomplished, and Tenant will permit Landlord the necessary access to the Premises to remedy such Material Service Failure. In the event of any interruption of HVAC or other utilities that Landlord must provide pursuant to this Lease, regardless of the cause, Landlord shall diligently pursue the restoration of such HVAC and other utilities. Notwithstanding anything in this Lease to the contrary, but subject to Article 24 (which shall 

 

29  govern in the event of a casualty), the provisions of this Section shall be Tenant’s sole recourse and remedy in the event of an interruption of HVAC or other utilities to the Premises.  16.3. Tenant shall pay for, prior to delinquency of payment therefor, any utilities and services that may be furnished to the Premises during or, if Tenant occupies the Premises after the expiration or earlier termination of the Term, after the Term, beyond those utilities provided by Landlord, including telephone, internet service, cable television and other telecommunications, together with any fees, surcharges and taxes thereon. Upon Landlord’s demand, utilities and services provided to the Premises that are separately metered shall be paid by Tenant directly to the supplier of such utilities or services.  16.4. Tenant shall not, without Landlord’s prior written consent, use any device in the Premises (including data processing machines) that will in any way (a) increase the amount of ventilation, air exchange, gas, steam, electricity or water required or consumed in the Premises based upon Tenant’s Pro Rata Share of the Project beyond the existing capacity of the Project usually furnished or supplied for the Permitted Use or (b) exceed Tenant’s Pro Rata Share of the Project’s capacity to provide such utilities or services.  16.5. If Tenant shall require utilities or services in excess of those usually furnished or supplied for tenants in similar spaces in the Building or the Project by reason of Tenant’s equipment or extended hours of business operations, then Tenant shall first procure Landlord’s consent for the use thereof, which consent Landlord may condition upon the availability of such excess utilities or services, and Tenant shall pay as Additional Rent an amount equal to the cost of providing such excess utilities and services.  16.6. Landlord shall provide water in Common Area for lavatory and landscaping purposes only, which water shall be from the local municipal or similar source; provided, however, that if Landlord determines that Tenant requires, uses or consumes water provided to the Common Area for any purpose other than ordinary lavatory purposes, Landlord may install a water meter (“Tenant Water Meter”) and thereby measure Tenant’s water consumption for all purposes. Tenant shall pay Landlord for the costs of any Tenant Water Meter and the installation and maintenance thereof during the Term. If Landlord installs a Tenant Water Meter, Tenant shall pay for water consumed, as shown on such meter, as and when bills are rendered. If Tenant fails to timely make such payments, Landlord may pay such charges and collect the same from Tenant. Any such costs or expenses incurred or payments made by Landlord for any of the reasons or purposes stated in this Section shall be deemed to be Additional Rent payable by Tenant and collectible by Landlord as such.  16.7. Landlord reserves the right to stop service of the elevator, plumbing, ventilation, air conditioning and utility systems, upon not less than two (2) business days’ prior notice to Tenant, when Landlord deems necessary or desirable, due to accident, emergency or the need to make repairs, alterations or improvements, until such repairs, alterations or improvements shall have been completed, and Landlord shall further have no responsibility or liability for failure to supply elevator facilities, plumbing, ventilation, air conditioning or utility service when prevented from doing so by Force Majeure or, to the extent permitted by Applicable Laws, Landlord’s negligence (except as provided in Section 16.2). Notwithstanding the foregoing, in cases of emergency or due to accident, Landlord shall not be required to provide notice to 

 

30  Tenant. Without limiting the foregoing, it is expressly understood and agreed that any covenants on Landlord’s part to furnish any service pursuant to any of the terms, covenants, conditions, provisions or agreements of this Lease, or to perform any act or thing for the benefit of Tenant, shall not be deemed breached if Landlord is unable to furnish or perform the same by virtue of Force Majeure or, to the extent permitted by Applicable Laws, Landlord’s negligence (subject to Section 16.2). Notwithstanding the foregoing, Landlord shall use commercially reasonable efforts to schedule any maintenance and/or repair activities that are the responsibility of Landlord under this Lease during times that will minimize interference with Tenant and its business activities conducted from the Premises.  16.8. Tenant shall have the right to connect the existing back-up generator serving the Building (the “Generator”) to the Premises’ emergency electrical panel. Tenant acknowledges and agrees that Landlord has made no representation or warranty (express or implied) regarding the condition of the Generator or the suitability of the Generator for Tenant's use, including any warranty of merchantability or fitness for a particular purpose. The Generator shall be the sole responsibility of Tenant and Landlord shall have no obligations with respect thereto. Tenant shall, at its sole cost and expense, maintain and keep the Generator in good condition and repair, in compliance with all Applicable Laws (including, without limitation, any required permits) and shall otherwise be solely responsible for any repair, maintenance and/or replacement costs with respect to the Generator. Tenant shall keep in full force and effect during the Term (and occupancy by Tenant, if any, after termination of this Lease) a preventative maintenance contract for inspections and maintenance for the Generator (using a qualified, licensed, bonded service provider reasonably approved by Landlord) at commercially reasonable intervals that comply with industry standard practices and Applicable Laws. If requested in writing by Landlord, Tenant shall provide to Landlord copies of any Generator maintenance contracts and any Generator maintenance reports on a quarterly basis. Notwithstanding anything to the contrary in this Lease, Landlord shall have no liability, and Tenant shall have no right or remedy, on account of any interruption or impairment with respect to the Generator or failure of the Generator to operate in an emergency situation.  16.9. Tenant shall (a) maintain and operate the heating, ventilating and air conditioning systems (including, without limitation, the exhaust fume hoods) exclusively serving the Premises used for the Permitted Use only (“HVAC”) and (b) furnish HVAC as reasonably required for reasonably comfortable occupancy of the Premises twenty-four (24) hours a day, every day during the Term. Tenant shall keep in full force and effect during the Term (and occupancy by Tenant, if any, after termination of this Lease) a preventative maintenance contract for inspections and maintenance using a qualified, licensed, bonded service provider reasonably approved by Landlord at commercially reasonable intervals that comply with industry standard practices and Applicable Laws. Notwithstanding anything to the contrary in this Section, Landlord shall have no liability, and Tenant shall have no right or remedy, on account of any interruption or impairment in HVAC services. If requested in writing by Landlord, Tenant shall provide to Landlord copies of HVAC maintenance contracts and HVAC maintenance reports on a quarterly basis. In the event Landlord determines that Tenant is not properly maintaining the HVAC, Landlord may take over the responsibilities in (a) and (b) above. Any reasonable costs or expenses incurred, or payments made by Landlord as a result of Tenant failing to properly 

 

31  maintain the HVAC, shall be deemed to be Additional Rent payable by Tenant and collectible by Landlord as such.  16.10. For any utilities serving the Premises for which Tenant is billed directly by such utility provider, Tenant agrees to furnish to Landlord (a) any invoices or statements for such utilities within thirty (30) days after Landlord’s request therefor, (b) within thirty (30) days after Landlord’s request, any other utility usage information reasonably requested by Landlord, and (c) within thirty (30) days after each calendar year during the Term, authorization to allow Landlord to access Tenant’s usage information necessary for Landlord to comply with Applicable Law; and Tenant shall comply with any other energy usage or consumption requirements required by Applicable Laws. Tenant shall retain records of utility usage at the Premises, including invoices and statements from the utility provider, for at least thirty-six (36) months, or such longer period of time as may be required by Applicable Law. Tenant acknowledges that any utility information for the Premises, the Building and the Project may be shared with third parties, including Landlord’s consultants and Governmental Authorities. In the event that Tenant fails to comply with this Section, Tenant hereby authorizes Landlord to collect utility usage information directly from the applicable utility providers. In addition to the foregoing, Tenant shall comply with all Applicable Laws related to the disclosure and tracking of energy consumption at the Premises. The provisions of this Section shall survive  the expiration or earlier termination of this Lease.  17. Alterations. 17.1. Except  for  Cosmetic  Alterations  (as  defined  below),  Tenant  shall  make  no alterations, additions or improvements (other than the Tenant Improvements) in or to the Premises or engage in any construction, demolition, reconstruction, renovation or other work (whether major or minor) of any kind in, at or serving the Premises (“Alterations”) without Landlord’s prior written approval, which approval may be subject to the consent of one or more Lenders, if required under any applicable Loan Document, but which approval Landlord shall not otherwise unreasonably withhold, condition or delay; provided, however, that, in the event any proposed Alteration affects (a) any structural portions of the Building, including exterior walls, the roof, the foundation or slab, foundation or slab systems (including barriers and subslab systems) or the core of the Building, (b) the exterior of the Building or (c) any Building systems, including elevator, plumbing, HVAC, electrical, security, life safety and power, then Landlord may withhold its approval in its sole and absolute discretion. Tenant shall, in making any Alterations, use only those architects, contractors, suppliers and mechanics of which Landlord has given prior written approval, which approval shall be in Landlord’s sole and absolute discretion. In seeking Landlord’s approval, Tenant shall provide Landlord, at least sixty (60) days in advance of the desired commencement date of any proposed construction, with plans, specifications, bid proposals, certified stamped engineering drawings and calculations by Tenant’s engineer of record or architect of record (including connections to the Building’s structural system, modifications to the Building’s envelope, non-structural penetrations in slabs or walls, and modifications or tie-ins to life safety systems), work contracts,  requests  for laydown areas and such other information concerning the nature and cost of the Alterations as Landlord may reasonably request, provided that Tenant shall not commence any such Alterations that require Landlord’s consent unless and until Tenant has received the written approval of Landlord  and  any  and  all  Lenders  whose  consent  is  required  under  any  applicable  Loan 

 

32  Document. In no event shall Tenant use or Landlord be required to approve any architects, consultants, contractors, subcontractors or material suppliers that Landlord reasonably believes could cause labor disharmony or may not have sufficient experience, in Landlord’s reasonable opinion, to perform work in an occupied Class “A” laboratory research building and in lab areas. Notwithstanding the foregoing, Tenant may make strictly cosmetic changes to the Premises that do not require any permits or more than three (3) total contractors and subcontractors (“Cosmetic Alterations”) without Landlord’s consent; provided that (y) the cost of any Cosmetic Alterations does not exceed Five Hundred Thousand Dollars ($500,000) annually, (z) such Cosmetic Alterations are not reasonably expected to have any material adverse effect on the Project and do not (i) require any structural or other substantial modifications to the Premises, (ii) require any changes to or adversely affect the Building systems, (iii) affect any portion of the Building or Project that is exterior to the Premises, or (iv) trigger any requirement under Applicable Laws that would require Landlord to make any alteration or improvement to the Premises, the Building or the Project. Tenant shall not be required to give Landlord prior written notice of any Cosmetic Alterations, unless such Cosmetic Alterations will generate noise or other disruption outside of the Building.  17.2. Tenant  shall  not  construct  or  permit  to  be  constructed  partitions  or  other obstructions that might interfere with free access to mechanical installation or service facilities of the Building or with other tenants’ components located within the Building (in the event Tenant does not lease the entire Building), or interfere with the moving of Landlord’s equipment to or from the enclosures containing such installations or facilities.  17.3. Tenant shall accomplish any work performed on the Premises or the Building in such a manner as to permit any life safety systems to remain fully operable at all times.  17.4. Any work performed on the Premises, the Building or the Project by Tenant or Tenant’s contractors which could generate noise or other disruption outside of the Building shall be done at such times and in such manner as Landlord may from time to time designate. Tenant covenants and agrees that all work done by Tenant or Tenant’s contractors shall be performed in full compliance with Applicable Laws. Within thirty (30) days after completion of any Alterations, Tenant shall provide Landlord with complete “as built” drawing print sets and electronic CADD files on disc (or files in such other current format in common use as Landlord reasonably approves or requires) showing any changes in the Premises, as well as a commissioning report prepared by a licensed, qualified commissioning agent hired by Tenant and approved by Landlord for all new or affected mechanical, electrical and plumbing systems. Any such “as built” plans shall show the applicable Alterations as an overlay on the Building as- built plans; provided that Landlord provides the Building “as built” plans to Tenant.  17.5. Before  commencing  any  Alterations  or  Tenant  Improvements  (other  than Cosmetic Alterations), Tenant shall (a) give Landlord at least sixty (60) days’ prior written notice of the proposed commencement of such work and the names and addresses of the persons supply labor or materials therefor so that Landlord may enter the Premises to post and keep posted thereon and therein notices or to take any further action that Landlord may reasonably deem proper for the protection of Landlord’s interest in the Project and (b) shall, if required by 

 

33  Landlord, secure, at Tenant’s own cost and expense, a completion and lien indemnity bond satisfactory to Landlord for any work costing in excess of Fifty Thousand Dollars ($50,000).  17.6. Tenant shall repair any damage to the Premises caused by Tenant’s removal of any property from the Premises. During any such restoration period, Tenant shall pay Rent to Landlord as provided herein as if such space were otherwise occupied by Tenant. The provisions of this Section shall survive the expiration or earlier termination of this Lease.  17.7. The  Premises  plus  any  Alterations;  Signage;  Tenant  Improvements;  attached equipment, decorations, fixtures and trade fixtures; movable laboratory casework and related appliances; and other additions and improvements attached to or built into the Premises made by either of the parties (including all floor and wall coverings; paneling; sinks; fixed laboratory benches; exterior venting fume hoods; walk-in freezers and refrigerators; ductwork; conduits; electrical panels and circuits; attached machinery and equipment; and built-in furniture and cabinets, in each case, together with all additions and accessories thereto), shall (unless, prior to such construction or installation, Landlord elects otherwise in writing) at all times remain the property of Landlord, shall remain in the Premises and shall (unless, prior to construction or installation thereof, Landlord elects otherwise in writing) be surrendered to Landlord upon the expiration or earlier termination of this Lease. For the avoidance of doubt, the items listed on Exhibit H attached hereto (which Exhibit H may be updated by Tenant from and after the Term Commencement Date, subject to Landlord’s written consent) constitute Tenant’s property and shall be removed by Tenant upon the expiration or earlier termination of the Lease.  17.8. Notwithstanding any other provision of this Article to the contrary, in no event shall Tenant remove any improvement from the Premises in which any Lender has a security interest or as to which Landlord contributed payment, including the Tenant Improvements, without Landlord’s prior written consent, which consent Landlord may withhold in its sole and absolute discretion.  17.9. If Tenant shall fail to remove any of its property from the Premises prior to the expiration or earlier termination of this Lease, then Landlord may, at its option, remove the same in any manner that Landlord shall choose and store such effects without liability to Tenant for loss thereof or damage thereto, and Tenant shall pay Landlord, upon demand, any costs and expenses incurred due to such removal and storage or Landlord may, at its sole option and without notice to Tenant, sell such property or any portion thereof at private sale and without legal process for such price as Landlord may obtain and apply the proceeds of such sale against any (a) amounts due by Tenant to Landlord under this Lease and (b) any expenses incident to the removal, storage and sale of such personal property.  17.10. Tenant shall pay to Landlord an amount equal to two percent (2%) of the cost to Tenant of all Alterations (excluding Cosmetic Alterations) to cover Landlord’s overhead and expenses for plan review, engineering review, coordination, scheduling and supervision thereof or obtaining any required Lender consent. For purposes of payment of such sum, Tenant shall submit to Landlord copies of all bills, invoices and statements covering the costs of such charges, accompanied by payment to Landlord of the fee set forth in this Section. Tenant shall reimburse Landlord for any extra expenses incurred by Landlord by reason of faulty work done 

 

 by Tenant or its contractors, or by reason of delays caused by such work, or by reason of inadequate clean-up.  17.11. Within sixty (60) days after final completion of the Tenant Improvements or any Alterations performed by Tenant with respect to the Premises, Tenant shall submit to Landlord documentation showing the amounts expended by Tenant with respect to such Tenant Improvements and Alterations, together with supporting documentation reasonably acceptable to Landlord.  17.12. Tenant shall take, and shall cause its contractors to take, commercially reasonable steps to protect the Premises during the performance of any Alterations or Tenant Improvements, including covering or temporarily removing any window coverings so as to guard against dust, debris or damage.  17.13. Tenant shall require its contractors and subcontractors performing work on the Premises  to  name  Landlord  and  its  affiliates  and  Lenders  as  additional  insureds  on  their respective insurance policies.  18. Repairs and Maintenance. 18.1. Landlord’s Repair and Maintenance.  Landlord shall repair and maintain in good condition the structural and exterior portions of the Building and the Common Area of the Project, including roofing and covering materials; foundations (excluding any architectural slabs, but including any structural slabs); and exterior walls.  18.2. Tenant’s Repair and Maintenance. Except  for services of  Landlord, if any, required by Section 18.1, Tenant shall at Tenant’s sole cost and expense maintain and keep the Premises and every part thereof (including, without limitation, all Building systems) in good condition and repair, damage thereto from ordinary wear and tear excepted, and shall, within ten (10) business days after receipt of written notice from Landlord, provide to Landlord any maintenance records that Landlord reasonably requests. Without limiting the generality of the foregoing, Tenant shall, at Tenant’s sole cost and expense, (a) maintain the HVAC in accordance with all of the terms, conditions, provisions and agreements set forth in Section 16.9 above, and (b) hire (i) a licensed elevator contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the elevator(s) serving the Premises, (ii) a licensed fire alarm contractor to regularly and periodically (at commercially reasonable intervals that comply with industry  standard  practices  and  Applicable  Laws)  inspect and  perform required maintenance on the fire alarm equipment and systems serving the Premises, (iii) a licensed sprinkler inspection contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the sprinkler equipment and systems serving the Premises, (iv) a backflow inspection contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the backflow equipment and systems serving the Premises, (v) a licensed BMS contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required  34 

 

 maintenance on the BMS equipment and systems serving the Premises, (vi) a licensed chemical water treatment contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the chemical water treatment equipment and systems serving the Premises, (vii) a licensed pure water treatment contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the pure water treatment equipment and systems serving the Premises, (viii) an air compressor and vacuum pump contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the air compressor and vacuum pump equipment and systems serving the Premises, and (ix) a licensed electrical maintenance contractor to regularly and periodically (at commercially reasonable intervals that comply with industry standard practices and Applicable Laws) inspect and perform required maintenance on the electrical equipment and systems serving the Premises.  18.3. Notwithstanding anything to the contrary, if Tenant shall fail, after twenty (20) days’ written  notice,  to  (a)  hire  the contractors (or cause such contractors to perform the inspections and maintenance) required under Section 18.2 above or (b) perform any maintenance or to make, or to commence and thereafter to proceed with diligence to make, any repair required of it with respect to the Premises pursuant to the terms of the Lease, Landlord, without being under any obligation to do so and without thereby waiving such default by Tenant, may hire such contractors, perform such maintenance or make such repair and may charge Tenant for the reasonable costs thereof. Any expense reasonably incurred by Landlord in connection therewith may be billed by Landlord to Tenant monthly or, at Landlord’s option, immediately, and shall be due and payable within thirty (30) days after such billing or, at Landlord’s option, may be deducted from the Security Deposit.  18.4. Tenant shall, upon the expiration or sooner termination of the Term, surrender the Premises to Landlord in as good a condition as when received, ordinary wear and tear excepted and with the Tenant Improvements in substantially the same condition as existed on the Term Commencement Date, ordinary wear and tear excepted; and shall, at Landlord’s request and Tenant’s sole cost and expense, remove all telephone and data systems, wiring and equipment from the Premises, and repair any damage to the Premises caused thereby. Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises.  18.5. Landlord shall not be liable for any failure to make any repairs or to perform any maintenance that is Landlord’s obligation pursuant to this Lease unless such failure shall persist for an unreasonable time after Tenant provides Landlord with written notice of the need of such repairs or maintenance. Tenant waives its rights under Applicable Laws now or hereafter in effect to make repairs at Landlord’s expense. Notwithstanding the foregoing, in the event that Landlord timely fails to make a repair or perform maintenance that is Landlord's obligation pursuant to this Lease, Tenant may notify Landlord of such failure and, if Landlord does not make the repair or perform the maintenance within thirty (30) days after Landlord's receipt of such notice (or, if such repair or maintenance cannot reasonably be completed within such period, within the period of time reasonably required (so long as Landlord begins the repair or maintenance within such period and diligently prosecutes the same to completion)), Tenant may  35 

 

 perform the repair or maintenance and Landlord shall reimburse Tenant for its reasonable out-of- pocket costs for performing the same within thirty (30) days after receipt of an invoice from Tenant therefor. Notwithstanding anything in this Section to the contrary, before performing any such repairs or maintenance, Tenant shall notify Landlord of Tenant's intent to do so and shall reasonably coordinate with Landlord and any other tenants of the Project that may be affected the need for such repairs or maintenance.  18.6. If any excavation shall be made upon land adjacent to or under the Building, or shall be authorized to be made, Tenant shall afford to the person causing or authorized to cause such excavation, license to enter the Premises for the purpose of performing such work as such person shall reasonably deem necessary or desirable to preserve and protect the Building from injury or damage and to support the same by proper foundations, without any claim for damages or liability against Landlord and without reducing or otherwise affecting Tenant’s obligations under this Lease. In connection with the foregoing, Landlord shall work with Tenant to the extent commercially reasonable to ensure Tenant’s quiet enjoyment of the Premises are not disrupted during work hours.  18.7. This Article relates to repairs and maintenance arising in the ordinary course of operation of the Building and the Project. In the event of a casualty described in Article 24, Article 24 shall apply in lieu of this Article. In the event of eminent domain, Article 25 shall apply in lieu of this Article.  18.8. Costs incurred by Landlord pursuant to this Article shall constitute Operating Expenses to the extent that such costs may properly be included in Operating Expenses under Article 9 of this Lease.  19. Liens. 19.1.  Subject to the immediately succeeding sentence, Tenant shall keep the Premises, the Building and the Project free from any liens arising out of work or services performed, materials furnished to or obligations incurred by Tenant. Tenant further covenants and agrees that any mechanic’s or materialman’s lien filed against the Premises, the Building or the Project for work or services claimed to have been done for, or materials claimed to have been furnished to, or obligations incurred by Tenant shall be discharged or bonded by Tenant within twenty (20) days after the filing thereof, at Tenant’s sole cost and expense.  19.2. Should Tenant fail to discharge or bond against any lien of the nature described in Section 19.1, Landlord may, at Landlord’s election, pay such claim or post a statutory lien bond or otherwise provide security to eliminate the lien as a claim against title, and Tenant shall immediately reimburse Landlord for the costs thereof as Additional Rent. Tenant shall Indemnify the Landlord Indemnitees from and against any Claims arising from any such liens, including any administrative, court or other legal proceedings related to such liens.  19.3. In the event that Tenant leases or finances the acquisition of office equipment, furnishings or other personal property of a removable nature utilized by Tenant in the operation of Tenant’s business, Tenant warrants that any Uniform Commercial Code financing statement shall, upon its face or by exhibit thereto, indicate that such financing statement is applicable only  36 

 

 to removable personal property of Tenant located within the Premises. In no event shall the address of the Premises, the Building or the Project be furnished on a financing statement without qualifying language as to applicability of the lien only to removable personal property located in an identified suite leased by Tenant. Should any holder of a financing statement record or place of record a financing statement that appears to constitute a lien against any interest of Landlord or against equipment that may be located other than within an identified suite leased by Tenant, Tenant shall, within ten (10) days after filing such financing statement, cause (a) a copy of the lender security agreement or other documents to which the financing statement pertains to be furnished to Landlord to facilitate Landlord’s ability to demonstrate that the lien of such financing statement is not applicable to Landlord’s interest and (b) Tenant’s lender to amend such financing statement and any other documents of record to clarify that any liens imposed thereby are not applicable to any interest of Landlord in the Premises, the Building or the Project.  20. Estoppel Certificate. Tenant shall, within ten (10) business days after receipt of written notice from Landlord, execute, acknowledge and deliver a statement in writing substantially in the form attached to this Lease as Exhibit I, or on any other form reasonably requested by a current or proposed Lender or encumbrancer or proposed purchaser, (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect) and the dates to which rental and other charges are paid in advance, if any, (b) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, and (c) setting forth such further information with respect to this Lease or the Premises as may be requested thereon. Any such statements may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Property. Tenant’s failure to deliver any such statement within the prescribed time shall, at Landlord’s option, constitute a Default (as defined below) under this Lease (after an additional written notice sent in accordance with Section 39 with a copy of such notice e-mailed to the e-mail address set forth in Section 2.10, and the expiration of an additional five (5) day cure period), and, in any event, shall be binding upon Tenant that the Lease is in full force and effect and without modification except as may be represented by Landlord in any certificate prepared by Landlord and delivered to Tenant for execution.  21. Hazardous Materials. 21.1. Tenant shall not cause or permit any Hazardous Materials (as defined below) to be brought upon, kept or used in or about the Premises, the Building or the Project in violation of Applicable Laws by Tenant or any of its employees, agents, contractors or invitees (collectively with Tenant, each a “Tenant Party”).  If (a) Tenant breaches such obligation, (b) the presence of Hazardous Materials as a result of such a breach results in contamination of the Project, any portion thereof, or any adjacent property, (c) contamination of the Premises otherwise occurs during the Term or any extension or renewal hereof or holding over hereunder (other than if such contamination results from (i) migration of Hazardous Materials from outside the Premises not caused by a Tenant Party or (ii) to the extent such contamination is caused by Landlord's gross negligence or willful misconduct) or (d) contamination of the Project occurs as a result of Hazardous Materials that are placed on or under or are released into the Project by a Tenant Party, then Tenant shall Indemnify the Landlord Indemnitees from and against any and all 37 

 

 Claims of any kind or nature, including (w) diminution in value of the Project or any portion thereof, (x) damages for the loss or restriction on use of rentable or usable space or of any amenity of the Project, (y) damages arising from any adverse impact on marketing of space in the Project or any portion thereof and (z) sums paid in settlement of Claims that arise before, during or after the Term as a result of such breach or contamination. This Indemnification by Tenant includes costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work required by any Governmental Authority because of Hazardous Materials present in the air, soil or groundwater above, on, under or about the Project. Without limiting the foregoing, if the presence of any Hazardous Materials in, on, under or about the Project, any portion thereof or any adjacent property caused or permitted by any Tenant Party results in any contamination of the Project, any portion thereof or any adjacent property, then Tenant shall promptly take all actions at its sole cost and expense as are necessary to return the Project, any portion thereof or any adjacent property to its respective condition existing prior to the time of such contamination; provided that Landlord’s written approval of such action shall first be obtained, which approval Landlord shall not unreasonably withhold; and provided, further, that it shall be reasonable for Landlord to withhold its consent if such actions could have a material adverse long-term or short-term effect on the Project, any portion thereof or any adjacent property. Tenant’s obligations under this Section shall not be affected, reduced or limited by any limitation on the amount or type of damages, compensation or benefits payable by or for Tenant under workers’ compensation acts, disability benefit acts, employee benefit acts or similar legislation. Notwithstanding the foregoing, Landlord shall (a) indemnify, save, defend (at Tenant’s option and with counsel reasonably acceptable to Tenant) and hold the Tenant Parties harmless from and against any and all Claims resulting from the presence of Hazardous Materials at the Project in violation of Applicable Laws as of the Execution Date, unless placed at the Project by a Tenant Party, and (b) reimburse Tenant for any out-of-pocket costs incurred  by  Tenant  (and  approved  in  advance  by Landlord)  to  remediate  Hazardous Materials at the Project in violation of Applicable Laws as of the Execution Date, unless such Hazardous Materials were placed at the Project by a Tenant Party.  21.2. Landlord acknowledges that it is not the intent of this Article to prohibit Tenant from operating its business for the Permitted Use. Tenant may operate its business according to the custom of Tenant’s industry so long as the use or presence of Hazardous Materials is strictly and properly monitored in accordance with Applicable Laws. As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business, Tenant agrees to deliver to Landlord (and any Lender of Landlord) (a) a list identifying each type of Hazardous Material to be present at the Premises that is subject to regulation under any environmental Applicable Laws in the form of a Tier II form pursuant to Section 312 of the Emergency Planning and Community Right-to-Know Act of 1986 (or any successor statute) or any other form reasonably requested by Landlord, (b) a list of any and all approvals or permits from Governmental Authorities required in connection with the presence of such Hazardous Material at the Premises and (c) correct and complete copies of (i) notices of violations of Applicable Laws related to Hazardous Materials and (ii) plans relating to the installation of any storage tanks to be installed in, on, under or about the Project (provided that installation of storage tanks shall only be permitted after Landlord has given Tenant its written consent to do so, which consent Landlord may withhold in its sole and absolute discretion) and closure plans or any other documents required by any and all Governmental Authorities for any storage tanks  38 

 

 installed in, on, under or about the Project for the closure of any such storage tanks (collectively, “Hazardous Materials Documents”). Tenant shall deliver to Landlord (and any Lender of Landlord) updated Hazardous Materials Documents, within fourteen (14) days after receipt of a written request therefor from Landlord, not more often than once per year, unless (m) there are any changes to the Hazardous Materials Documents or (n) Tenant initiates any Alterations or changes its business, in either case in a way that involves any material increase in the types or amounts of Hazardous Materials, in which case Tenant shall deliver updated Hazardous Materials documents (without Landlord having to request them) before or, if not practicable to do so before, as soon as reasonably practicable after the occurrence of the events in Subsection 21.2(m) or (n). For each type of Hazardous Material listed, the Hazardous Materials Documents shall include (t) the chemical name, (u) the material state (e.g., solid, liquid, gas or cryogen), (v) the concentration, (w) the storage amount and storage condition (e.g., in cabinets or not in cabinets), (x) the use amount and use condition (e.g., open use or closed use), (y) the location (e.g., room number or other identification) and (z) if known, the chemical abstract service number. Notwithstanding anything in this Section to the contrary, Tenant shall not be required to provide Landlord with any documents containing information of a proprietary nature, unless such documents contain a reference to Hazardous Materials or activities related to Hazardous Materials. Landlord may, at Landlord’s expense, cause the Hazardous Materials Documents to be reviewed by a person or firm qualified to analyze Hazardous Materials to confirm compliance with the provisions of this Lease and with Applicable Laws. In the event that a review of the Hazardous Materials Documents indicates non-compliance with this Lease or Applicable Laws, Tenant shall, at its expense, diligently take steps to bring its storage and use of Hazardous Materials into compliance. Notwithstanding anything in this Lease to the contrary or Landlord’s review into Tenant’s Hazardous Materials Documents or use or disposal of hazardous materials, however, Landlord shall not have and expressly disclaims any liability related to Tenant’s or other tenants’ use or disposal of Hazardous Materials, it being acknowledged by Tenant that Tenant is best suited to evaluate the safety and efficacy of its Hazardous Materials usage and procedures.  21.3. Tenant represents and warrants to Landlord that as of the date of this Lease, Tenant is not nor has it been, in connection with the use, disposal or storage of Hazardous Materials, (a) subject to a material enforcement order issued by any Governmental Authority or (b) required to take any remedial action.  21.4. At any time, and from time to time,  prior to the expiration of the Term, Landlord shall have the right to conduct appropriate tests of the Project or any portion thereof to demonstrate that Hazardous Materials are present or that contamination has occurred due to the acts or omissions of a Tenant Party. Tenant shall pay all reasonable documented costs of such tests if such tests reveal that Hazardous Materials exist at the Project in violation of this Lease.  21.5. If underground or other storage tanks storing Hazardous Materials installed or utilized by Tenant are located on the Premises, or are hereafter placed on the Premises by Tenant (or by any other party, if such storage tanks are utilized by Tenant), then Tenant shall monitor the storage tanks, maintain appropriate records, implement reporting procedures, properly close any underground storage tanks, and take or cause to be taken all other steps required under the Applicable Laws.   Tenant shall have no responsibility or liability for underground or other  39 

 

 storage tanks installed by anyone other than Tenant unless Tenant utilizes such tanks, in which case Tenant’s responsibility for such tanks shall be as set forth in this Section.  21.6. Tenant shall promptly report to Landlord any actual or suspected presence of mold or water intrusion at the Premises.  21.7. Tenant’s obligations under this Article shall survive the expiration or earlier termination of the Lease. During any period of time needed by Tenant or Landlord after the termination of this Lease to complete the removal from the Premises of any such Hazardous Materials, Tenant shall be deemed a holdover tenant and subject to the provisions of Article 27.  21.8. As  used  herein,  the  term “Hazardous  Material”  means  any  toxic,  explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous substance, material or waste that is or becomes regulated by Applicable Laws or any Governmental Authority.  21.9. Notwithstanding anything to the contrary in this Lease, Landlord shall have sole control over the equitable allocation of fire control areas (as defined in the Uniform Building Code as adopted by the city or municipality(ies) in which the Project is located (the “UBC”)) within the Project for the storage of Hazardous Materials. Notwithstanding anything to the contrary in this Lease, the quantity of Hazardous Materials allowed by this Section is specific to Tenant and shall not run with the Lease in the event of a Transfer (as defined in Article 29). In the event of a Transfer, if the use of Hazardous Materials by such new tenant (“New Tenant”) is such that New Tenant utilizes fire control areas in the Project in excess of New Tenant’s Pro Rata Share of the Project, then New Tenant shall, at its sole cost and expense and upon Landlord’s written request, establish and maintain a separate area of the Premises classified by the UBC as an “H” occupancy area for the use and storage of Hazardous Materials, or take such other action as is necessary to ensure that its share of the fire control areas of Project is not greater than New Tenant’s Pro Rata Share of the Project. Notwithstanding anything in this Lease to the contrary, Landlord shall not have and expressly disclaims any liability related to Tenant’s or other tenants’ use or disposal of fire control areas, it being acknowledged by Tenant that Tenant and other tenants are best suited to evaluate the safety and efficacy of its Hazardous Materials usage and procedures.  22. Odors and Exhaust. Tenant acknowledges that Landlord would not enter into this Lease with Tenant unless Tenant assured Landlord that under no circumstances will any other occupants of the Building or the Project (including persons legally present in any outdoor areas of the Project) be subjected to odors or fumes (whether or not noxious), and that the Building and the Project will not be damaged by any exhaust, in each case from Tenant’s operations. Landlord and Tenant therefore agree as follows:  22.1. Tenant shall not cause or permit (or conduct any activities that would cause) any release of any odors or fumes of any kind from the Premises.  22.2. If the Building has a ventilation system that, in Landlord’s judgment, is adequate, suitable, and appropriate to vent the Premises in a manner that does not release odors affecting any indoor or outdoor part of the Project, Tenant shall vent the Premises through such system. If 40 

 

 Landlord at any time reasonably determines that any existing ventilation system is inadequate, or if no ventilation system exists, Tenant shall in compliance with Applicable Laws vent all fumes and odors from the Premises (and remove odors from Tenant’s exhaust stream) as Landlord reasonably requires. The placement and configuration of all ventilation exhaust pipes, louvers and other equipment shall be subject to Landlord’s reasonable approval. Tenant acknowledges Landlord’s legitimate desire to maintain the Project (indoor and outdoor areas) in an odor-free manner, and Landlord may require Tenant to abate and remove all odors in a manner that goes beyond the requirements of Applicable Laws.  22.3. Tenant shall, at Tenant’s sole cost and expense, provide odor eliminators and other devices (such as filters, air cleaners, scrubbers and whatever other equipment may in Landlord’s reasonable judgment be necessary or appropriate from time to time) to completely remove, eliminate and abate any odors, fumes or other substances in Tenant’s exhaust stream that, in Landlord’s reasonable judgment, emanate from Tenant’s Premises. Any work Tenant performs under this Section shall constitute Alterations.  22.4. Tenant’s responsibility to remove, eliminate and abate odors, fumes and exhaust shall continue throughout the Term. Landlord’s approval of the Tenant Improvements shall not preclude Landlord from requiring additional measures to eliminate odors, fumes and other adverse impacts of Tenant’s exhaust stream (as Landlord may designate in Landlord’s reasonable discretion). Tenant shall install additional equipment as Landlord reasonably requires from time to time under the preceding sentence. Such installations shall constitute Alterations.  22.5. If Tenant fails to install satisfactory odor control equipment within ten (10) business days after Landlord’s demand made at any time, then Landlord may, without limiting Landlord’s other rights and remedies, require Tenant to cease and suspend any operations in the Premises that, in Landlord’s reasonable determination, cause odors, fumes or exhaust. For example, if Landlord determines that Tenant’s production of a certain type of product causes odors, fumes or exhaust, and Tenant does not install satisfactory odor control equipment within ten (10) business days after Landlord’s request, then Landlord may require Tenant to stop producing such type of product in the Premises unless and until Tenant has installed odor control equipment satisfactory to Landlord.  23. Insurance; Waiver of Subrogation. 23.1. Landlord shall maintain insurance for the Building and the Project in amounts equal to full replacement cost (exclusive of the costs of excavation, foundations and footings, engineering costs or such other costs to the extent the same are not incurred in the event of a rebuild and without reference to depreciation taken by Landlord upon its books or tax returns), provided that such coverage shall not be less than the amount of such insurance Landlord’s Lender, if any, requires Landlord to maintain, providing protection against any peril generally included within the classification “Fire and Extended Coverage,” together with insurance against sprinkler damage (if applicable), vandalism and malicious mischief. Landlord, subject to availability thereof, shall further insure, if Landlord deems it appropriate, coverage against flood, environmental hazard, earthquake, loss or failure of building equipment, rental loss during the period  of  repairs  or  rebuilding,  Workers’  Compensation  insurance  and  fidelity  bonds  for  41 

 

 employees employed to perform services. Notwithstanding the foregoing, Landlord may, but shall not be deemed required to, provide insurance for any improvements installed by Tenant or that are in addition to the standard improvements customarily furnished by Landlord, without regard to whether or not such are made a part of or are affixed to the Building.  23.2. In addition, Landlord shall carry Commercial General Liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence/general aggregate for bodily injury (including death), or property damage with respect to the Project.  23.3. Tenant shall, at its own cost and expense, procure and maintain during the Term the following insurance for the benefit of Tenant and Landlord (as their interests may appear) with insurers financially acceptable and lawfully authorized to do business in the state where the Premises are located:  (a) Commercial General Liability insurance on a broad-based occurrence coverage form, with coverages including but not limited to bodily injury (including death), property damage (including loss of use resulting therefrom), premises/operations, personal & advertising injury, and contractual liability with limits of liability of not less than $2,000,000 for bodily injury and property damage per occurrence, $2,000,000 general aggregate, which limits may be met by use of excess and/or umbrella liability insurance provided that such coverage is at least as broad as the primary coverages required herein.  (b) Commercial Automobile Liability insurance covering liability arising from the use or operation of any auto, including those owned, hired or otherwise operated or used by or on behalf of the Tenant. The coverage shall be on a broad-based occurrence form with combined single limits of not less than $1,000,000 per accident for bodily injury and property damage.  (c) Commercial Property insurance covering property damage to the full replacement cost value and business interruption. Covered property shall include all tenant improvements in the Premises (to the extent not insured by Landlord pursuant to Section 23.1) and Tenant’s Property including personal property, furniture, fixtures, machinery, equipment, stock, inventory and improvements and betterments, which may be owned by Tenant or Landlord and required to be insured hereunder, or which may be leased, rented, borrowed or in the care custody or control of Tenant, or Tenant’s agents, employees or subcontractors. Such insurance, with respect only to all Tenant Improvements, Alterations or other work performed on the Premises by Tenant (collectively, “Tenant Work”), shall name Landlord and Landlord’s current and future mortgagees as loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including the perils of fire, extended coverage, electrical injury, mechanical breakdown, windstorm, vandalism, malicious mischief, sprinkler leakage, back-up of sewers or drains, flood, earthquake, terrorism and such other risks Landlord may from time to time designate, for the full replacement cost value of the covered items with an agreed amount endorsement with no co-insurance. Business interruption coverage shall have limits sufficient to cover Tenant’s lost profits and necessary continuing expenses, including rents due Landlord under the Lease. The minimum period of indemnity for business interruption coverage shall be twelve (12) months plus twelve (12) months’ extended period of indemnity.  42 

 

 (d) Workers’ Compensation insurance as is required by statute or law, or as may be available on a voluntary basis and Employers’ Liability insurance with limits of not less than the following: each accident, Five Hundred Thousand Dollars ($500,000); disease (each employee), Five Hundred Thousand Dollars ($500,000).  (e) Medical malpractice insurance at limits of not less than $1,000,000 each claim during such periods, if any, that Tenant engages in the practice of medicine at the Premises.  (f) Pollution Legal Liability insurance is required if Tenant stores, handles, generates or treats Hazardous Materials, as determined solely by Landlord, on or about the Premises. Such coverage shall include bodily injury, sickness, disease, death or mental anguish or shock sustained by any person; property damage including physical injury to or destruction of tangible property including the resulting loss of use thereof, clean-up costs, and the loss of use of tangible property that has not been physically injured or destroyed; and defense costs, charges and expenses incurred in the investigation, adjustment or defense of claims for such compensatory damages. Coverage shall apply to both sudden and non-sudden pollution conditions including the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any watercourse or body of water. Claims- made coverage is permitted, provided the policy retroactive date is continuously maintained prior to the commencement date of this agreement, and coverage is continuously maintained during all periods in which Tenant occupies the Premises. Coverage shall be maintained with limits of not less than $1,000,000 per incident with a $2,000,000 policy aggregate and for a period of two (2) years thereafter.  (g) During all construction by Tenant at the Premises, with respect to tenant improvements being constructed (including the Tenant Improvements and any Alterations), insurance required in Exhibit B-1 must be in place.  23.4. The insurance required of Tenant by this Article shall be with companies at all times having a current rating of not less than A- and financial category rating of at least Class VII in “A.M. Best’s Insurance Guide” current edition. Tenant shall obtain for Landlord from the insurance companies/broker or cause the insurance companies/broker to furnish certificates of insurance evidencing all coverages required herein to Landlord. Landlord reserves the right to require complete, certified copies of all required insurance policies including any endorsements. No such policy shall be cancelable or subject to reduction of coverage or other modification or cancellation except after twenty (20) days’ prior written notice to Landlord from Tenant or its insurers (except in the event of non-payment of premium, in which case ten (10) days’ written notice shall be given). Tenant may modify, reduce or change insurance companies/brokers without prior written notice to Landlord so long as such changes do not cause Tenant to have a lapse in coverage or fail to satisfy Tenant’s obligations under this Section 23. All such policies shall be written as primary policies, not contributing with and not in excess of the coverage that Landlord may carry. Tenant’s required policies shall contain severability of interests clauses stating that, except with respect to limits of insurance, coverage shall apply separately to each insured or additional insured.  Tenant shall, at least five (5) days prior to the expiration of such  43 

 

 policies, furnish Landlord with renewal certificates of insurance or binders. Tenant agrees that if Tenant does not take out and maintain such insurance, Landlord may (but shall not be required to) procure such insurance on Tenant’s behalf and at its cost to be paid by Tenant as Additional Rent. Commercial General Liability, Commercial Automobile Liability, Umbrella Liability and Pollution Legal Liability insurance as required above shall name Landlord, BioMed Realty, L.P., and BRE Edison Parent L.P., and their respective officers, employees, agents, general partners, members, subsidiaries, affiliates and Lenders (“Landlord Parties”) as additional insureds as respects liability arising from work or operations performed by or on behalf of Tenant, Tenant’s use or occupancy of Premises, and ownership, maintenance or use of vehicles by or on behalf of Tenant.  23.5. In  each  instance  where  insurance  is  to  name  Landlord  Parties  as  additional insureds, Tenant shall, upon Landlord’s written request, also designate and furnish certificates evidencing such Landlord Parties as additional insureds to (a) any Lender of Landlord holding a security interest in the Building or the Project, (b) the landlord under any lease whereunder Landlord is a tenant of the real property upon which the Building is located if the interest of Landlord is or shall become that of a tenant under a ground lease rather than that of a fee owner and (c) any management company retained by Landlord to manage the Project.  23.6. Tenant   assumes   the   risk   of   damage   to   any   fixtures,   goods,   inventory, merchandise, equipment and leasehold improvements, and Landlord shall not be liable for injury to Tenant’s business or any loss of income therefrom, relative to such damage, all as more particularly set forth within this Lease. Tenant shall, at Tenant’s sole cost and expense, carry such insurance as Tenant desires for Tenant’s protection with respect to personal property of Tenant or business interruption.  23.7. Landlord, Tenant and each of their respective insurers hereby waive any and all rights of recovery or subrogation against one another or against the officers, employees, agents, general partners, members, subsidiaries and affiliates of the other (or against any Lenders of Landlord) as respects any loss, damage, claims, suits or demands, howsoever caused, that are covered, or should have been covered, by valid and collectible insurance, including any deductibles or self-insurance maintained thereunder. If necessary, each party agrees to endorse the required insurance policies to permit waivers of subrogation as required hereunder and hold harmless and indemnify the other party for any loss or expense incurred as a result of a failure to obtain such waivers of subrogation from insurers. Such waivers shall continue so long as their respective insurers so permit. Any termination of such a waiver shall be by written notice to the other party, containing a description of the circumstances hereinafter set forth  in  this Section 23.7. Landlord and Tenant, upon obtaining the policies of insurance required or permitted under this Lease, shall give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. If such policies shall not be obtainable with such waiver or shall be so obtainable only at a premium over that chargeable without such waiver, then the party seeking such policy shall notify the other of such conditions, and the party so notified shall have ten (10) days thereafter to either (a) procure such insurance with companies reasonably satisfactory to the other party or (b) agree to pay such additional premium (in Tenant's case, in the proportion that the area of the Premises bears to the insured area). If the parties do not accomplish either (a) or (b), then this Section 23.7 shall have no effect during such  44 

 

45  time as such policies shall not be obtainable or the party in whose favor a waiver of subrogation is desired refuses to pay the additional premium. If such policies shall at any time be unobtainable, but shall be subsequently obtainable, then neither party shall be subsequently liable for a failure to obtain such insurance until a reasonable time after notification thereof by the other party. If the release of either Landlord or Tenant, as set forth in the first sentence of this Section 23.7, shall contravene Applicable Laws, then the liability of the party in question shall be deemed not released but shall be secondary to the other party's insurer.  23.8. Landlord may require insurance policy limits required under this Lease to be raised to conform with requirements of Landlord’s Lender or to bring coverage limits to levels then being required of new tenants within the Project.  23.9. Any costs incurred by Landlord pursuant to this Article shall constitute a portion of Operating Expenses to the extent that such costs may properly be included in Operating Expenses under Article 9.  23.10. this Lease. The provisions of this Article shall survive the expiration or earlier termination of  24. Damage or Destruction. 24.1. In the event of a partial destruction of (a) the Premises, (b) the Building, (c) the Common Area or (d) the Project ((a)-(d) collectively, the “Affected Areas”) by fire or other perils covered by extended coverage insurance not exceeding twenty-five percent (25%) of the full insurable value thereof, and provided that (w) the damage thereto is such that the Affected Areas may be repaired, reconstructed or restored within a period of six (6) months from the date of the happening of such casualty, (x) Landlord shall receive insurance proceeds from its insurer or Lender sufficient to cover the cost of such repairs, reconstruction and restoration (except for any deductible amount provided by Landlord’s policy, which deductible amount, if paid by Landlord, shall constitute an Operating Expense) (y) the repair, reconstruction or restoration of the Affected Areas is permitted by all applicable Loan Documents or otherwise consented to by any and all Lenders whose consent is required thereunder, and (z) such casualty was not intentionally caused by a Tenant Party, then Landlord shall commence and proceed diligently with the work of repair, reconstruction and restoration of the Affected Areas and this Lease shall continue in full force and effect.  24.2. In the event of any damage to or destruction of the Building or the Project other than as described in Section 24.1, Landlord may elect to repair, reconstruct and restore the Building or the Project, as applicable, in which case this Lease shall continue in full force and effect. If Landlord elects not to repair, reconstruct and restore the Building or the Project, as applicable, then this Lease shall terminate as of the date of such damage or destruction. In the event of any damage or destruction (regardless of whether such damage  is  governed  by Section 24.1 or this Section), if (a) in Landlord's determination as set forth in the Damage Repair Estimate (as defined below), the Affected Areas cannot be repaired, reconstructed or restored within twelve (12) months after the date of the Damage Repair  Estimate,  (b) subject  to Section 24.6, the Affected Areas are not actually repaired, reconstructed and restored by the later of (i) twelve (12) months after the date of the Damage Repair Estimate or (ii) ninety (90) days 

 

46  after the date set forth in the Damage Repair Estimate for such repairs, reconstruction or restoration to be complete, or (c) the damage and destruction occurs within the last twelve (12) months of the then-current Term, then Tenant shall have the right to terminate this Lease, effective as of the date of such damage or destruction, by delivering to Landlord its written notice of termination (a "Termination Notice") (y) with respect to Subsections 24.2(a) and (c), no later than fifteen (15) days after Landlord delivers to Tenant Landlord's Damage Repair Estimate and (z) with respect to Subsection 24.2(b), no later than fifteen (15) days after the later of the dates set forth therein (as the same may be extended pursuant to Section 24.6) expires.  24.3. As  soon  as  reasonably  practicable,  but  in  any  event  within  sixty  (60) days following the date of damage or destruction, Landlord shall notify Tenant of Landlord's good faith estimate of the period of time in which the repairs, reconstruction and restoration will be completed (the "Damage Repair Estimate"), which estimate shall be based upon the opinion of a contractor reasonably selected by Landlord and experienced in comparable repair, reconstruction and restoration of similar buildings. Additionally, Landlord shall give written notice to Tenant within ninety (90) days following the date of damage or destruction of its election not to repair, reconstruct or restore the Building or the Project, as applicable.  24.4. Upon any termination of this Lease under any of the provisions of this Article, the parties shall be released thereby without further obligation to the other from the date possession of the Premises is surrendered to Landlord, except with regard to (a) items occurring prior to the damage or destruction and (b) provisions of this Lease that, by their express terms, survive the expiration or earlier termination hereof.  24.5. In the event of repair, reconstruction and restoration as provided in this Article, all Rent to be paid by Tenant under this Lease shall be abated proportionately based on the extent to which Tenant’s use of the Premises is impaired commencing as of the date of damage and continuing during the period of such repair, reconstruction or restoration, unless Landlord provides Tenant with other space during the period of repair, reconstruction and restoration that, in Tenant’s sole opinion, is suitable for the temporary conduct of Tenant’s business; provided, however, that the amount of such abatement shall be reduced by the amount of Rent that is received by Tenant as part of the business interruption or loss of rental income with respect to the Premises from the proceeds of business interruption or loss of rental income insurance.  24.6. Notwithstanding anything to the contrary contained in this Article (a) Landlord shall not be required to repair, reconstruct or restore any damage or destruction to the extent that Landlord is prohibited from doing so by any applicable Loan Document or any Lender whose consent is required thereunder withholds its consent, and (b) should Landlord be delayed or prevented from completing the repair, reconstruction or restoration of the damage or destruction to the Premises after the occurrence of such damage or destruction by Force Majeure or delays caused by a Lender or Tenant Party, then the time for Landlord to commence or complete repairs, reconstruction and restoration shall be extended on a day-for-day basis; provided, however, that, at Landlord’s election, if such delays total more than ninety (90) days in the aggregate, Landlord shall be relieved of its obligation to make such repairs, reconstruction and restoration. 

 

47  24.7. If Landlord is obligated to or elects to repair, reconstruct or restore as herein provided, then Landlord shall be obligated to make such repairs, reconstruction or restoration only with regard to (a) those portions of the Premises that were originally provided at Landlord’s expense and (b) the Common Area portion of the Affected Areas. The repairs, reconstruction or restoration of improvements not originally provided by Landlord or at Landlord’s expense shall be the obligation of Tenant. In the event Tenant has elected to upgrade certain improvements from the Building Standard, Landlord shall, upon the need for replacement due to an insured loss, provide only the Building Standard, unless Tenant again elects to upgrade such improvements and pay any incremental costs related thereto, except to the extent that excess insurance proceeds, if received, are adequate to provide such upgrades, in addition to providing for basic repairs, reconstruction and restoration of the Premises, the Building and the Project.  24.8. Notwithstanding anything to the contrary contained in this Article, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises if the damage resulting from any casualty covered under this Article occurs during the last twenty-four (24) months of the Term or any extension thereof, or to the extent that insurance proceeds are not available therefor; provided that in the event Tenant has an unexercised option to extend the Term of this Lease, Tenant may elect to exercise such option early, in which case the remaining Term will be calculated based on the Term as extended for purposes of this Section.  24.9. Landlord’s obligation, should it elect or be obligated to repair, reconstruct or restore, shall be limited to the Affected Areas, and shall be conditioned upon Landlord receiving any permits or authorizations required by Applicable Laws, and in such event Landlord will use commercially reasonable efforts to obtain such permits or authorizations. Tenant shall, at its expense, replace or fully repair all of Tenant’s personal property and any Alterations installed by Tenant existing at the time of such damage or destruction. If Affected Areas are to be repaired, reconstructed or restored in accordance with the foregoing, Landlord shall make available to Tenant any portion of insurance proceeds it receives that are allocable to the Alterations constructed by Tenant pursuant to this Lease; provided Tenant is not then in Default under this Lease, and subject to the requirements of any Lender of Landlord.  24.10. This Article sets forth the terms and conditions upon which this Lease may terminate in the event of any damage or destruction. Accordingly, the parties hereby waive the provisions of California Civil Code Sections 1932(2) and 1933(4) (and any successor statutes) permitting the parties to terminate this Lease as a result of any damage or destruction.  25. Eminent Domain. 25.1. In the event (a) the whole of all Affected Areas or (b) such part thereof as shall substantially interfere with Tenant’s use and occupancy of the Premises for the Permitted Use shall be taken for any public or quasi-public purpose by any lawful power or authority by exercise of the right of appropriation, condemnation or eminent domain, or sold to prevent such taking, Tenant or Landlord may terminate this Lease effective as of the date possession is required to be surrendered to such authority, except with regard to (y) items occurring prior to the taking and (z) provisions of this Lease that, by their express terms, survive the expiration or earlier termination hereof. 

 

48  25.2. In the event of a partial taking of (a) the Building or the Project or (b) drives, walkways or parking areas serving the Building or the Project for any public or quasi-public purpose by any lawful power or authority by exercise of right of appropriation, condemnation, or eminent domain, or sold to prevent such taking, then, without regard to whether any portion of the Premises occupied by Tenant was so taken, Landlord may elect to terminate this Lease (except with regard to (y) items occurring prior to the taking and (z) provisions of this Lease that, by their express terms, survive the expiration or earlier termination hereof) as of such taking if such taking is, in Landlord’s sole opinion, of a material nature such as to make it uneconomical to continue use of the unappropriated portion for purposes of renting office or laboratory space.  25.3. To  the  extent  permitted  under  all  applicable  Loan  Documents  or  otherwise consented to by any and all Lenders whose consent is required thereunder, Tenant shall be entitled to any award that is specifically awarded as compensation for (a) the taking of Tenant’s personal property that was installed at Tenant’s expense, (b) the costs of Tenant moving to a new location and (c) loss of Tenant’s goodwill. Except as set forth in the previous sentence, any award for such taking shall be the property of Landlord.  25.4. If, upon any taking of the nature described in this Article, this Lease continues in effect, then Landlord shall promptly proceed to restore the Affected Areas to substantially their same condition prior to such partial taking. To the extent such restoration is infeasible, as determined by Landlord in its sole and absolute discretion, the Rent shall be decreased proportionately to reflect the loss of any portion of the Premises no longer available to Tenant. Notwithstanding anything to the contrary contained in this Article, Landlord shall not  be required to restore the Affected Areas to the extent that Landlord is prohibited from doing so by any applicable Loan Document or any Lender whose consent is required thereunder withholds its consent.  25.5. This Article sets forth the terms and conditions upon which this Lease may terminate in the event of any damage or destruction. Accordingly, the parties hereby waive the provisions of California Code of Civil Procedure Section 1265.130 (and any successor statutes) permitting the parties to terminate this Lease as a result of any damage or destruction.  26. Surrender. 26.1. At least fifteen (15) days prior to Tenant’s surrender of possession of any part of the Premises, Tenant shall provide Landlord with a facility decommissioning and Hazardous Materials closure plan for the Premises (“Exit Survey”) prepared by an independent third party state-certified professional with appropriate expertise, which Exit Survey must be reasonably acceptable to Landlord. The Exit Survey shall comply with the American National Standards Institute’s Laboratory Decommissioning guidelines (ANSI/AIHA Z9.11-2008) or any successor standards published by ANSI or any successor organization (or, if ANSI and its successors no longer exist, a similar entity publishing similar standards). In addition, at least ten (10) days prior to Tenant’s surrender of possession of any part of the Premises, Tenant shall (a) provide Landlord with (i) written evidence showing Tenant’s application for all appropriate governmental releases and written evidence showing Tenant has passed the required inspections necessary for such governmental releases in accordance with Applicable Laws, including laws 

 

49  pertaining to the surrender of the Premises, if any, and (ii) in the event that Tenant used or stored radioactive materials in the Premises, all governmental releases required by Applicable Laws in connection with such use or storage (e.g., proof of radioactive materials license closure), (b) place Laboratory Equipment Decontamination Forms on all decommissioned  equipment  to assure safe occupancy by future users and (c) conduct a site inspection with Landlord. In addition, Tenant agrees to remain responsible after the surrender of the Premises for the remediation of any recognized environmental conditions set forth in the Exit Survey and comply with any recommendations set forth in the Exit Survey. Tenant’s obligations under this Section shall survive the expiration or earlier termination of the Lease.  26.2. No surrender of possession of any part of the Premises shall release Tenant from any of its obligations hereunder, unless such surrender is accepted in writing by Landlord.  26.3. The voluntary or other surrender of this Lease by Tenant shall not effect a merger with Landlord’s fee title or leasehold interest in the Premises, the Building, the Property or the Project, unless Landlord consents in writing, and shall, at Landlord’s option, operate as an assignment to Landlord of any or all subleases.  26.4. The voluntary or other surrender of any ground or other underlying lease that now exists or may hereafter be executed affecting the Building or the Project, or a mutual cancellation thereof or of Landlord’s interest therein by Landlord and its lessor shall not effect a merger with Landlord’s fee title or leasehold interest in the Premises, the Building or the Property and shall, at the option of the successor to Landlord’s interest in the Building or the Project, as applicable, operate as an assignment of this Lease.  27. Holding Over. 27.1. If, with Landlord’s prior written consent, Tenant holds possession of all or any part of the Premises after the Term, Tenant shall become a tenant from month to month after the expiration or earlier termination of the Term, and in such case Tenant shall continue to pay (a) Base Rent in accordance with Article 7, as adjusted in accordance with Article 8, and (b) any amounts for which Tenant would otherwise be liable under this Lease if the Lease were still in effect, including payments for Tenant’s Adjusted Share of Operating Expenses. Any such month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein.  27.2. Notwithstanding the foregoing, if Tenant remains in possession of the Premises after the expiration or earlier termination of the Term without Landlord’s prior written consent, (a) Tenant shall become a tenant at sufferance subject to the terms and conditions of this Lease, except that the monthly rent shall be equal to (i) one hundred twenty-five percent (125%) of the Rent in effect during the last thirty (30) days of the Term for the first three (3) months of such holdover, and (ii) one hundred fifty percent (150%) thereafter, and (b) Tenant shall be liable to Landlord for any and all damages suffered by Landlord as a result of such holdover, including any lost rent or consequential, special and indirect damages (in each case, regardless of whether such damages are foreseeable). 

 

50  27.3. Acceptance by Landlord of Rent after the expiration or earlier termination of the Term shall not result in an extension, renewal or reinstatement of this Lease.  27.4. The foregoing provisions of this Article are in addition to and do not affect Landlord’s right of reentry or any other rights of Landlord hereunder or as otherwise provided by Applicable Laws.  27.5. this Lease. The provisions of this Article shall survive the expiration or earlier termination of  28. Indemnification and Exculpation. 28.1. Except to the extent caused by Landlord’s negligence or willful misconduct, Tenant agrees to Indemnify the Landlord Indemnitees from and against any and all Claims of any kind or nature, real or alleged, arising from (a) injury to or death of any person or damage to any property occurring within or about the Premises, the Building, the Property or the Project, arising directly or indirectly out of (i) the presence at or use or occupancy of the Premises or Project by a Tenant Party, (ii) an act or omission on the part of any Tenant Party, (b) a breach or default by Tenant in the performance of any of its obligations hereunder (including any Claim asserted by any Lender against any Landlord Indemnitees under any Loan Document as a direct result of such breach or default by Tenant) or (c) injury to or death of persons or damage to or loss of any property, real or alleged, arising from the serving of alcoholic beverages at the Premises or Project, including liability under any dram shop law, host liquor law or similar Applicable Law. Tenant’s obligations under this Section shall not be affected, reduced or limited by any limitation on the amount or type of damages, compensation or benefits payable by or for Tenant under workers’ compensation acts, disability benefit acts, employee benefit acts or similar legislation. Subject to Sections 23.6, 23.7, 28.2 and 31.12 and any subrogation provisions contained in the Work Letter, Landlord agrees to Indemnify the Tenant Parties from and against any and all Claims arising from injury to or death of any person or damage to or loss of any physical property occurring within or about the Premises, the Building, the Property or the Project to the extent directly arising out of Landlord’s gross negligence or willful misconduct. Landlord’s and Tenant’s obligations under this Section shall survive the expiration or earlier termination of this Lease.  28.2. Notwithstanding anything in this Lease to the contrary, Landlord shall not be liable to Tenant for and Tenant assumes all risk of (a) damage or losses caused by fire, electrical malfunction, gas explosion or water damage of any type (including broken water lines, malfunctioning fire sprinkler systems, roof leaks or stoppages of lines), unless any such loss is due to Landlord’s willful disregard of written notice by Tenant of need for a repair that Landlord is responsible to make for an unreasonable period of time, and (b) damage to personal property or scientific research, including loss of records kept by Tenant within the Premises (in each case, regardless of whether such damages are foreseeable). Tenant further waives any claim for injury to Tenant’s business or loss of income relating to any such damage or destruction of personal property as described in this Section. Notwithstanding anything in the foregoing or this Lease to the contrary, except (x) as otherwise provided herein (including Section 27.2) or (y) in the event of Tenant’s breach of Article 21 or Section 26.1, in no event shall Landlord or Tenant be liable to  the  other  for  any  consequential,  special  or  indirect  damages  arising  out  of  this  Lease, 

 

 including lost profits (provided that this Subsection 28.2(z) shall not limit Tenant’s liability for Base Rent or Additional Rent pursuant to this Lease).  28.3. Landlord shall not be liable for any damages arising from any act, omission or neglect of any other tenant in the Building or the Project, or of any other third party.  28.4. Tenant acknowledges that security devices and services, if any, while intended to deter crime, may not in given instances prevent theft or other criminal acts. Landlord shall not be liable for injuries or losses caused by criminal acts of third parties, and Tenant assumes the risk that any security device or service may malfunction or otherwise be circumvented by a criminal. If Tenant desires protection against such criminal acts, then Tenant shall, at Tenant’s sole cost and expense, obtain appropriate insurance coverage. Tenant’s security programs and equipment for  the  Premises  shall  be  coordinated  with  Landlord  and subject  to  Landlord’s reasonable approval.  28.5. this Lease. The provisions of this Article shall survive the expiration or earlier termination of  29. Assignment or Subletting. 29.1. Except  as  hereinafter  expressly  permitted,  none  of  the  following  (each,  a “Transfer”), either voluntarily or by operation of Applicable Laws, shall be directly or indirectly performed without Landlord’s prior written consent: (a) Tenant selling, hypothecating, assigning, pledging, encumbering or otherwise transferring this Lease or subletting the Premises or (b) a controlling interest in Tenant being sold, assigned or otherwise transferred (other than as a result of shares in Tenant being sold on a public stock exchange). For purposes of the preceding sentence, “control” means (a) owning (directly or indirectly) more than fifty percent (50%) of the stock or other equity interests of another person or (b) possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of such person. Notwithstanding the foregoing, Tenant shall have the right to Transfer, without Landlord’s prior written consent, Tenant’s interest in this Lease or the Premises or any part thereof to any person or entity (i) that as of the date of determination and at all times thereafter directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with Tenant, (ii) into which Tenant is merged or consolidated or (iii) that acquires all or substantially all of the assets, stock, or other equity interest of Tenant (collectively, a “Tenant’s Affiliate”); provided that Tenant shall notify Landlord in writing at least fifteen (15) business days prior to the effectiveness of such Transfer to Tenant’s Affiliate (an “Exempt Transfer”) and otherwise comply with the requirements of this Lease regarding such Transfer; and provided, further, that the person that will be the tenant under this Lease after the Exempt Transfer has a net worth (as of both the day immediately prior to and the day immediately after the Exempt Transfer) that is equal to or greater than the net worth (as of both the Execution Date and the date of the Exempt Transfer) of the transferring Tenant. For purposes of the immediately preceding sentence, “control” requires both (a) owning (directly or indirectly) more than fifty percent (50%) of the stock or other equity interests of another person and (b) possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of such person. In no event shall Tenant perform a Transfer to or with an entity that is a tenant at the Project or that is in discussions or negotiations with Landlord to  51 

 

 lease premises at the Project. Notwithstanding anything in this Lease to the contrary, if (a) Tenant or any proposed transferee, assignee or sublessee of Tenant has been required by any prior landlord, Lender or Governmental Authority to take material remedial action in connection with Hazardous Materials contaminating a property if the contamination resulted from such party’s action or omission or use of the property in question or (b) Tenant or any proposed transferee, assignee or sublessee is subject to a material enforcement order issued by any Governmental Authority in connection with the use, disposal or storage of Hazardous Materials, then Landlord shall have the right to terminate this Lease in Landlord’s sole and absolute discretion (with respect to any such matter involving Tenant), and it shall not be unreasonable for Landlord to withhold its consent to any proposed transfer, assignment or subletting (with respect to any such matter involving a proposed transferee, assignee or sublessee).  29.2. In the event Tenant desires to effect a Transfer, then, at least thirty (30) but not more than one hundred eighty (180) days prior to the date when Tenant desires the Transfer to be effective (the “Transfer Date”), Tenant shall provide written notice to Landlord (the “Transfer Notice”) containing information (including references) concerning the character of the proposed transferee, assignee or sublessee; the anticipated Transfer Date; the most recent unconsolidated financial statements of Tenant and of the proposed transferee, assignee or sublessee satisfying the requirements of Section 40.2 (“Required Financials”); any ownership or commercial relationship between Tenant and the proposed transferee, assignee or sublessee; copies of Hazardous Materials Documents for the proposed transferee, assignee or sublessee; and the consideration and all other material terms and conditions of the proposed Transfer, all in such detail as Landlord shall reasonably require.  29.3. Landlord, in determining whether consent should be given to a proposed Transfer, may give consideration to (a) the financial strength of Tenant and of such transferee, assignee or sublessee (notwithstanding Tenant remaining liable for Tenant’s performance), (b) any change in use that such transferee, assignee or sublessee proposes to make in the use of the Premises and (c) Landlord’s desire to exercise its rights under Section 29.7 to cancel this Lease. In no event shall Landlord be deemed to be unreasonable for declining to consent to a Transfer if any applicable Loan Document prohibits such assignment or any Lender whose consent is required thereunder withholds its consent, or if the Transfer is to a transferee, assignee or sublessee of poor reputation, lacking financial qualifications or seeking a change in the Permitted Use, or jeopardizing directly or indirectly the status of Landlord or any of Landlord’s affiliates as a Real Estate Investment Trust under the Internal Revenue Code of 1986 (as the same may be amended from time to time, the “Revenue Code”). Notwithstanding anything contained in this Lease to the contrary, (w) no Transfer shall be consummated on any basis such that the rental or other amounts to be paid by the occupant, assignee, manager or other transferee thereunder would be based, in whole or in part, on the income or profits derived by the business activities of such occupant, assignee, manager or other transferee; (x) Tenant shall not furnish or render any services to an occupant, assignee, manager or other transferee with respect to whom transfer consideration is required to be paid, or manage or operate the Premises or any capital additions so transferred, with respect to which transfer consideration is being paid; (y) Tenant shall not consummate a Transfer with any person in which Landlord owns an interest, directly or indirectly (by applying constructive ownership rules set forth in Section 856(d)(5) of the Revenue Code); and (z) Tenant shall not consummate a Transfer with any person or in any  52 

 

 manner that could cause any portion of the amounts received by Landlord pursuant to this Lease or any sublease, license or other arrangement for the right to use, occupy or possess any portion of the Premises to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Revenue Code, or any similar or successor provision thereto or which could cause any other income of Landlord to fail to qualify as income described in Section 856(c)(2) of the Revenue Code.  29.4. The following are conditions precedent to a Transfer or to Landlord considering a request by Tenant to a Transfer:  (a) Tenant shall remain fully liable under this Lease. Tenant agrees that it shall not be (and shall not be deemed to be) a guarantor or surety of this Lease, however, and waives its right to claim that is it is a guarantor or surety or to raise in any legal proceeding any guarantor or surety defenses permitted by this Lease or by Applicable Laws;  (b) If Tenant or the proposed transferee, assignee or sublessee does not or cannot deliver the Required Financials, then Landlord may elect to have either Tenant’s ultimate parent company or the proposed transferee’s, assignee’s or sublessee’s ultimate parent company provide a guaranty of the applicable entity’s obligations under this Lease, in a form acceptable to Landlord, which guaranty shall be executed and delivered to Landlord by the applicable guarantor prior to the Transfer Date;  (c) In the case of an Exempt Transfer, Tenant shall provide Landlord with evidence reasonably satisfactory to Landlord that the Transfer qualifies as an Exempt Transfer;  (d) Tenant shall provide Landlord with evidence reasonably satisfactory to Landlord that the value of Landlord’s interest under this Lease shall not be diminished or reduced by the proposed Transfer. Such evidence shall include evidence respecting the relevant business experience and financial responsibility and status of the proposed transferee, assignee or sublessee;  (e) Tenant shall reimburse Landlord for Landlord’s actual costs and expenses, including reasonable attorneys’ fees, charges and disbursements incurred in connection with the review, processing and documentation of such request (collectively, “Transfer Fees”); provided, however, that Tenant shall not be obligated to reimburse Landlord for any Transfer Fees in excess of $2,500.00;  (f) Except with respect to an Exempt Transfer, if Tenant’s transfer of rights or sharing of the Premises provides for the receipt by, on behalf of or on account of Tenant of any consideration of any kind whatsoever (including a premium rental for a sublease or lump sum payment for an assignment, after deducting Tenant’s reasonable costs in marketing and subleasing the Premises) in excess of the rental and other charges due to Landlord under this Lease, Tenant shall pay fifty percent (50%) of all of such excess to Landlord, after making deductions for any reasonable marketing expenses, tenant improvement funds expended by Tenant, alterations, cash concessions, brokerage commissions, attorneys’ fees and free rent actually paid by Tenant. If such consideration consists of cash paid to Tenant, payment to Landlord shall be made upon receipt by Tenant of such cash payment; 53 

 

 (g) The proposed transferee, assignee or sublessee shall agree that, in the event Landlord gives such proposed transferee, assignee or sublessee notice that Tenant is in Default under this Lease, such proposed transferee, assignee or sublessee shall thereafter make all payments otherwise due Tenant directly to Landlord, which payments shall be received by Landlord without any liability being incurred by Landlord, except to credit such payment against those due by Tenant under this Lease, and any such proposed transferee, assignee or sublessee shall agree to attorn to Landlord or its successors and assigns should this Lease be terminated for any reason; provided, however, that in no event shall Landlord or its Lenders, successors or assigns be obligated to accept such attornment;   forms; (h) Landlord’s consent to any such Transfer shall be effected on Landlord’s  (i) Tenant shall not then be in Default hereunder;  (j) Such proposed transferee, assignee or sublessee’s use of the Premises shall be the same as the Permitted Use;  (k) Landlord shall not be bound by any provision of any agreement pertaining to the Transfer, except for Landlord’s written consent to the same;  (l) Tenant shall pay all transfer and other taxes (including interest and penalties) assessed or payable for any Transfer;  (m) Landlord’s consent (or waiver of its rights) for any Transfer, if applicable, shall not waive Landlord’s right to consent or refuse consent to any later Transfer;  (n) Tenant shall deliver to Landlord one executed copy of any and all written instruments evidencing or relating to the Transfer; and  (o) Tenant shall deliver to Landlord a list of Hazardous Materials (as defined below), certified by the proposed transferee, assignee or sublessee to be true and correct, that the proposed transferee, assignee or sublessee intends to use or store in the Premises. Additionally, Tenant shall deliver to Landlord, on or before the date any proposed transferee, assignee or sublessee takes occupancy of the Premises, all of the items relating to Hazardous Materials of such proposed transferee, assignee or sublessee as described in Section 21.2.  29.5. Any Transfer that is not in compliance with the provisions of this Article or with respect to which Tenant does not fulfill its obligations pursuant to this Article shall be void and shall, at the option of Landlord, terminate this Lease.  29.6. Notwithstanding any Transfer, Tenant shall remain fully and primarily liable for the payment of all Rent and other sums due or to become due hereunder, and for the full performance of all other terms, conditions and covenants to be kept and performed by Tenant. The acceptance of Rent or any other sum due hereunder, or the acceptance of performance of any other term, covenant or condition thereof, from any person or entity other than Tenant shall not be deemed a waiver of any of the provisions of this Lease or a consent to any Transfer.  54 

 

 29.7. If Tenant delivers to Landlord a Transfer Notice indicating a desire to (i) assign this Lease (other than pursuant to an Exempt Transfer) or (ii) enter into a sublease which results in more than fifty percent (50%) of the Premises being subject to a sublease for ninety-five percent (95%) or more of the remaining Term (other than pursuant to an Exempt Transfer), then Landlord shall have the option, exercisable by giving notice to Tenant at any time within thirty (30) days after Landlord’s receipt of such Transfer Notice, to terminate this Lease as of the date specified in the Transfer Notice as the Transfer Date, except for those provisions that, by their express terms, survive the expiration or earlier termination hereof. If Landlord exercises such option, then Tenant shall have the right to withdraw such Transfer Notice by delivering to Landlord written notice of such election within five (5) days after Landlord’s delivery of notice electing to exercise Landlord’s option to terminate this Lease. In the event Tenant withdraws the Transfer Notice as provided in this Section, this Lease shall continue in full force and effect. No failure of Landlord to exercise its option to terminate this Lease shall be deemed to be Landlord’s consent to a proposed Transfer.  29.8. If Tenant sublets the Premises or any portion thereof, Tenant hereby immediately and irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent from any such subletting, and appoints Landlord as assignee and attorney-in-fact for Tenant, and Landlord (or a receiver for Tenant appointed on Landlord’s application) may collect such rent and apply it toward Tenant’s obligations under this Lease; provided that, until the occurrence of a Default (as defined below) by Tenant, Tenant shall have the right to collect such rent.  29.9. In  the  event  that  Tenant  enters  into  a  sublease  for  the  entire  Premises  in accordance with this Article that expires within two (2) days of the Term Expiration Date, the term expiration date of such sublease shall, notwithstanding anything in this Lease, the sublease or any consent to the sublease to the contrary, be deemed to be the date that is two (2) days prior to the Term Expiration Date.  30. Subordination and Attornment. 30.1. This Lease shall be subject and subordinate to the lien of any mortgage, deed of trust, or lease in which Landlord is tenant now or hereafter in force against the Building or the Project and to all advances made or hereafter to be made upon the security thereof without the necessity of the execution and delivery of any further instruments on the part of Tenant to effectuate such subordination; provided, however, that a condition to such subordination will be Tenant’s receipt of a Subordination, Non-Disturbance and Attornment Agreement in the form attached hereto as Exhibit M or on another commercially reasonable form acceptable to Landlord’s lender or lien holder.  30.2. Notwithstanding the foregoing, Tenant shall execute and deliver upon demand such further instrument or instruments evidencing such subordination of this Lease to the lien of any such mortgage or mortgages or deeds of trust or lease in which Landlord is tenant as may be required by Landlord. If any Lender so elects, however, this Lease shall be deemed prior in lien to any such lease, mortgage, or deed of trust upon or including the Premises regardless of date and Tenant shall execute a statement in writing to such effect at Landlord’s request. If Tenant fails to execute any document required from Tenant under this Section within ten (10) business  55 

 

56  days after written request therefor, Tenant hereby constitutes and appoints Landlord or its special attorney-in-fact to execute and deliver any such document or documents in the name of Tenant. Such power is coupled with an interest and is irrevocable.  For the avoidance of doubt, “Lender” shall also include historic tax credit investors and new market tax credit investors.  30.3. Upon written request of Landlord and opportunity for Tenant to review, Tenant agrees to execute any Lease amendments not materially altering the terms of this Lease, if required by a Lender incident to the financing of the real property of which the Premises constitute a part.  30.4. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall at the election of the purchaser at such foreclosure or sale attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease.  31. Defaults and Remedies. 31.1. Late payment by Tenant to Landlord of Rent and other sums due shall cause Landlord to incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult and impracticable to ascertain. Such costs include processing and accounting charges and late charges that may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises. Therefore, if any installment of Rent due from Tenant is not received by Landlord within five (5) business days after the date such payment is due, Tenant shall pay to Landlord (a) an additional sum of four percent (4%) of the overdue Rent as a late charge plus (b) interest at an annual rate (the “Default Rate”) equal to the lesser of (a) twelve percent (12%) and (b) the highest rate permitted by Applicable Laws. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord shall incur by reason of late payment by Tenant and shall be payable as Additional Rent to Landlord due with the next installment of Rent or within five (5) business days after Landlord’s demand, whichever is earlier. Landlord’s acceptance of any Additional Rent (including a late charge or any other amount hereunder) shall not be deemed an extension of the date that Rent is due or prevent Landlord from pursuing any other rights or remedies under this Lease, at law or in equity.  31.2. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent payment herein stipulated shall be deemed to be other than on account of the Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy provided in this Lease or in equity or at law. If a dispute shall arise as to any amount or sum of money to be paid by Tenant to Landlord hereunder, Tenant shall have the right to make payment “under protest,” such payment shall not be regarded as a voluntary payment, and there shall survive the right on the part of Tenant to institute suit for recovery of the payment paid under protest.  31.3. If Tenant fails to pay any sum of money required to be paid by it hereunder or perform any other act on its part to be performed hereunder, in each case within the applicable 

 

57  cure period (if any) described in Section 31.4, then Landlord may (but shall not be obligated to), without waiving or releasing Tenant from any obligations of Tenant, make such payment or perform such act; provided that such failure by Tenant unreasonably interfered with the use of the Building or the Project by any other tenant or with the efficient operation of the Building or the Project, or resulted or could have resulted in a violation of Applicable Laws or the cancellation of an insurance policy maintained by Landlord. Notwithstanding the foregoing, in the event of an emergency, Landlord shall have the right to enter the Premises and act in accordance with its rights as provided elsewhere in this Lease. In addition to the late charge described in Section 31.1, Tenant shall pay to Landlord as Additional Rent all sums so paid or incurred by Landlord, together with interest at the Default Rate, computed from the date such sums were paid or incurred.  31.4. The occurrence of any one or more of the following events shall constitute a “Default” hereunder by Tenant:  (a) Tenant abandons the Premises or vacates without providing a commercially reasonable level of security;  (b) Tenant fails to make any payment of Rent, as and when due, or to satisfy its obligations under Article 19, where such failure shall continue for a period of five (5) business days after written notice thereof from Landlord to Tenant;  (c) Tenant fails to observe or perform any obligation or covenant contained herein (other than described in Sections 31.4(a) and 31.4(b)) to be performed by Tenant, where such failure continues for a period of thirty (30) days after written notice thereof from Landlord to Tenant; provided that, if the nature of Tenant’s default is such that it reasonably requires more than thirty (30) days to cure, Tenant shall not be deemed to be in Default if Tenant commences such cure within such thirty (30) day period and thereafter diligently prosecutes the same to completion; and provided, further, that such cure is completed no later than ninety (90) days after Tenant’s receipt of written notice from Landlord (unless Tenant’s ability to cure is outside of Tenant’s control (provided that financial inability shall not be considered outside of Tenant’s control), in which case the foregoing ninety (90) day period will not apply so long as Tenant diligently pursues such cure as soon as it is able);  (d) Tenant makes an assignment for the benefit of creditors;  (e) A receiver, trustee or custodian is appointed to or does take title, possession or control of all or substantially all of Tenant’s assets;  (f) Tenant files a voluntary petition under the United States Bankruptcy Code or any successor statute (as the same may be amended from time to time, the “Bankruptcy Code”) or an order for relief is entered against Tenant pursuant to a voluntary or involuntary proceeding commenced under any chapter of the Bankruptcy Code;  (g) Any involuntary petition is filed against Tenant under any chapter of the Bankruptcy Code and is not dismissed within one hundred twenty (120) days; 

 

58  (h) Tenant fails to deliver an estoppel certificate in accordance with Article 20 after the additional notice and cure period provided in Article 20; or  (i) Tenant’s interest in this Lease is attached, executed upon or otherwise judicially seized and such action is not released within one hundred twenty (120) days of the action.  Notices given under this Section shall specify the alleged default and shall demand that Tenant perform the provisions of this Lease or pay the Rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such notice.  31.5. In the event of a Default by Tenant, and at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy that Landlord may have, Landlord has the right to do any or all of the following:  (a) Halt any Tenant Improvements and Alterations and order Tenant’s contractors, subcontractors, consultants, designers and material suppliers to stop work;  (b) Terminate Tenant’s right to possession of the Premises by written notice to Tenant or by any lawful means, in which case Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall have the immediate right to re-enter and remove all persons and property, and such property may be removed and stored in a public warehouse or elsewhere at the cost and for the account of Tenant, all without service of notice or resort to legal process and without being deemed guilty of trespass or becoming liable for any loss or damage that may be occasioned thereby; and  (c) Terminate this Lease, in which event Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall have the immediate right to re-enter and remove all persons and property, and such property may be removed and stored in a public warehouse or elsewhere at the cost and for the account of Tenant, all without service of notice or resort to legal process and without being deemed guilty of trespass or becoming liable for any loss or damage that may be occasioned thereby. In the event that Landlord shall elect to so terminate this Lease, then Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default, including:  (i) The sum of:  A. The worth at the time of award of any unpaid Rent that had accrued at the time of such termination; plus  B. The worth at the time of award of the amount by which the unpaid Rent that would have accrued during the period commencing with termination of the Lease and ending at the time of award exceeds that portion of the loss of Landlord’s rental income from the Premises that Tenant proves could have been reasonably avoided; plus 

 

59  C. The worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds that portion of the loss of Landlord’s rental income from the Premises that Tenant proves could have been reasonably avoided; plus  D. Any other amount necessary to compensate Landlord for all the detriment caused by Tenant’s failure to perform its obligations under this Lease or that in the ordinary course of things would be likely to result therefrom, including the cost of restoring the Premises to the condition required under the terms of this Lease, including any rent payments not otherwise chargeable to Tenant (e.g., during any “free” rent period or rent holiday); plus  E. At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by Applicable Laws.  As used in Sections 31.5(c)(i)(A) and (B), “worth at the time of award” shall be computed by allowing interest at the Default Rate. As used in Section 31.5(c)(i)(C), the “worth at the time of the award” shall be computed by taking the present value of such amount, using the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1%).  31.6. In addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord shall have the remedy described in California Civil Code Section and may continue this Lease in effect after Tenant’s Default or abandonment and recover Rent as it becomes due, provided Tenant has the right to sublet or assign, subject only to reasonable limitations. In addition, subject to California Civil Code Section 1951.4, Landlord shall not be liable in any way whatsoever for its failure or refusal to relet the Premises. For purposes of this Section, the following acts by Landlord will not constitute the termination of Tenant’s right to possession of the Premises:  (a) Acts of maintenance or preservation or efforts to relet the Premises, including alterations, remodeling, redecorating, repairs, replacements or painting as Landlord shall consider advisable for the purpose of reletting the Premises or any part thereof; or  (b) The appointment of a receiver upon the initiative of Landlord to protect Landlord’s interest under this Lease or in the Premises.  Notwithstanding the foregoing, in the event of a Default by Tenant, Landlord may elect at any time to terminate this Lease and to recover damages to which Landlord is entitled.  31.7. If Landlord does not elect to terminate this Lease as provided in Section 31.5, then Landlord may, from time to time, recover all Rent as it becomes due under this Lease. At any time thereafter, Landlord may elect to terminate this Lease and to recover damages to which Landlord is entitled.  31.8. In the event Landlord elects to terminate this Lease and relet the Premises, Landlord may execute any new lease in its own name. Tenant hereunder shall have no right or authority whatsoever to collect any Rent from such tenant. The proceeds of any such reletting shall be applied as follows: 

 

60  (a) First, to the payment of any indebtedness other than Rent due hereunder from Tenant to Landlord, including storage charges or brokerage commissions owing from Tenant to Landlord as the result of such reletting;  (b) Second, to the payment of the costs and expenses of reletting the Premises, including (i) alterations and repairs that Landlord deems reasonably necessary and advisable and (ii) reasonable attorneys’ fees, charges and disbursements incurred by Landlord in connection with the retaking of the Premises and such reletting;   hereunder; and (c) Third,  to  the  payment  of  Rent  and  other  charges  due  and  unpaid  (d) Fourth, to the payment of future Rent and other damages payable by Tenant under this Lease.  31.9. All of Landlord’s rights, options and remedies hereunder shall be construed and held to be nonexclusive and cumulative. Landlord shall have the right to pursue any one or all of such remedies, or any other remedy or relief that may be provided by Applicable Laws, whether or not stated in this Lease. No waiver of any default of Tenant hereunder shall be implied from any acceptance by Landlord of any Rent or other payments due hereunder or any omission by Landlord to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect defaults other than as specified in such waiver. Landlord shall be required to mitigate its damages with respect to any default by Tenant to the extent required by Applicable Laws. Any such obligation imposed by Applicable Laws upon Landlord to relet the Premises after any termination of this Lease shall be subject to the reasonable requirements of Landlord to (a) lease to high quality tenants on such terms as Landlord may from time to time deem appropriate in its discretion and (b) develop the Project in a harmonious manner with a mix of uses, tenants, floor areas, terms of tenancies, etc., as determined by Landlord. Landlord shall not be obligated to relet the Premises to (y) any Tenant’s Affiliate or (z) any party (i) unacceptable to a Lender, (ii) that requires Landlord to make improvements to or re-demise the Premises, (iii) that desires to change the Permitted Use, (iv) that desires to lease the Premises for more or less than the remaining Term or (v) to whom Landlord or an affiliate of Landlord may desire to lease other available space in the Project or at another property owned by Landlord or an affiliate of Landlord.  31.10. Landlord’s termination of (a) this Lease or (b) Tenant’s right to possession of the Premises shall not relieve Tenant of any liability to Landlord that has previously accrued or that shall arise based upon events that occurred prior to the later to occur of (y) the date of Lease termination and (z) the date Tenant surrenders possession of the Premises.  31.11. To the extent permitted by Applicable Laws, Tenant waives any and all rights of redemption granted by or under any present or future Applicable Laws if Tenant is evicted or dispossessed for any cause, or if Landlord obtains possession of the Premises due to Tenant’s default hereunder or otherwise.  31.12. Landlord shall not be in default or liable for damages under this Lease unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no 

 

61  event shall such failure continue for more than thirty (30) days after written notice from Tenant specifying the nature of Landlord’s failure; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days are required for its performance, then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate or cancel this Lease or to withhold or abate rent or to set off any Claims against Rent as a result of any default or breach by Landlord of any of its covenants, obligations, representations, warranties or promises hereunder, except as may otherwise be expressly set forth in this Lease.  31.13. In the event of any default by Landlord, Tenant shall give notice by registered or certified mail or by nationally recognized overnight courier (such as FedEx or UPS) to any (a) beneficiary of a deed of trust or (b) mortgagee under a mortgage covering the Premises, the Building or the Project and to any landlord of any lease of land upon or within which the Premises, the Building or the Project is located, and shall offer such beneficiary, mortgagee or landlord a reasonable opportunity to cure the default, including time to obtain possession of the Building or the Project by power of sale or a judicial action if such should prove necessary to effect a cure; provided that Landlord shall furnish to Tenant in writing, upon written request by Tenant, the names and addresses of all such persons who are to receive such notices.  32. Bankruptcy . In the event a debtor, trustee or debtor in possession under the Bankruptcy Code, or another person with similar rights, duties and powers under any other Applicable Laws, proposes to cure any default under this Lease or to assume or assign this Lease and is obliged to provide adequate assurance to Landlord that (a) a default shall be cured, (b) Landlord shall be compensated for its damages arising from any breach of this Lease and (c) future performance of Tenant’s obligations under this Lease shall occur, then such adequate assurances shall include any or all of the following, as designated by Landlord in its sole and absolute discretion:  32.1. Those  acts  specified  in  the  Bankruptcy  Code  or  other  Applicable  Laws  as included within the meaning of “adequate assurance,” even if this Lease does not concern a shopping center or other facility described in such Applicable Laws;  32.2. A prompt cash payment to compensate Landlord for any monetary defaults or actual damages arising directly from a breach of this Lease;  32.3. A cash deposit in an amount at least equal to the then-current amount of the Security Deposit; or  32.4. this Lease. The assumption or assignment of all of Tenant’s interest and obligations under  33. Brokers. 33.1. Tenant represents and warrants that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease other than Hughes Marino (“Broker”), and that it knows of no other real estate broker or agent that is or might be entitled to 

 

62  a commission in connection with this Lease.  Landlord shall compensate Broker in relation to this Lease pursuant to a separate agreement between Landlord and Broker.  33.2. Tenant  represents  and  warrants  that  no  broker  or  agent  has  made  any representation or warranty relied upon by Tenant in Tenant’s decision to enter into this Lease, other than as contained in this Lease.  33.3. Tenant acknowledges and agrees that the employment of brokers by Landlord is for the purpose of solicitation of offers of leases from prospective tenants and that no authority is granted to any broker to furnish any representation (written or oral) or warranty from Landlord unless expressly contained within this Lease. Landlord is executing this Lease in reliance upon Tenant’s representations, warranties and agreements contained within Sections 33.1 and 33.2.  33.4. Tenant agrees to Indemnify the Landlord Indemnitees from any and all cost or liability for compensation claimed by any broker or agent, other than Broker, employed or engaged by Tenant or claiming to have been employed or engaged by Tenant. Landlord agrees to indemnify Tenant from any and all cost or liability for compensation claimed by any broker or agent, other than Broker or Jones Lang LaSalle (who represents Landlord in connection with this Lease), employed or engaged by Landlord or claiming to have been employed or engaged by Landlord.  34. Definition of Landlord. With regard to obligations imposed upon Landlord pursuant to this Lease, the term “Landlord,” as used in this Lease, shall refer only to Landlord or Landlord’s then-current successor-in-interest. In the event of any transfer, assignment or conveyance of Landlord’s interest in this Lease or in Landlord’s fee title to or leasehold interest in the Property, as applicable, Landlord herein named (and in case of any subsequent transfers or conveyances, the subsequent Landlord) shall be automatically freed and relieved, from and after the date of such transfer, assignment or conveyance, from all liability for the performance of any covenants or obligations contained in this Lease thereafter to be performed by Landlord and, without further agreement, the transferee, assignee or conveyee of Landlord’s in this Lease or in Landlord’s fee title to or leasehold interest in the Property, as applicable, shall be deemed to have assumed and agreed to observe and perform any and all covenants and obligations of Landlord hereunder during the tenure of its interest in the Lease or the Property. Landlord or any subsequent Landlord may transfer its interest in the Premises or this Lease without Tenant’s consent.  35. Limitation of Landlord’s Liability. 35.1. If Landlord is in default under this Lease and, as a consequence, Tenant recovers a monetary judgment against Landlord, the judgment shall be satisfied only out of (a) the proceeds of sale received on execution of the judgment and levy against the right, title and interest of Landlord in the Building and the Project, (b) rent or other income from such real property receivable by Landlord or (c) the consideration received by Landlord from the sale, financing, refinancing or other disposition of all or any part of Landlord’s right, title or interest in the Building or the Project. 

 

63  35.2. Neither Landlord nor any of its affiliates, nor any of their respective partners, shareholders, directors, officers, employees, members or agents shall be personally liable for Landlord’s obligations or any deficiency under this Lease, and service of process shall not be made against any shareholder, director, officer, employee or agent of Landlord or any of Landlord’s affiliates. No partner, shareholder, director, officer, employee, member or agent of Landlord or any of its affiliates shall be sued or named as a party in any suit or action, and service of process shall not be made against any partner or member of Landlord except as may be necessary to secure jurisdiction of the partnership, joint venture or limited liability company, as applicable. No partner, shareholder, director, officer, employee, member or agent of Landlord or any of its affiliates shall be required to answer or otherwise plead to any service of process, and no judgment shall be taken or writ of execution levied against any partner, shareholder, director, officer, employee, member or agent of Landlord or any of its affiliates.  35.3. Each of the covenants and agreements of this Article shall be applicable to any covenant or agreement either expressly contained in this Lease or imposed by Applicable Laws and shall survive the expiration or earlier termination of this Lease.  36. Joint and Several Obligations.  If more than one person or entity executes this Lease as Tenant, then:  36.1. Each  of  them  is  jointly  and  severally  liable  for  the  keeping,  observing  and performing of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept, observed or performed by Tenant, and such terms, covenants, conditions, provisions and agreements shall be binding with the same force and effect upon each and all of the persons executing this Agreement as Tenant; and  36.2. The term “Tenant,” as used in this Lease, shall mean and include each of them, jointly and severally. The act of, notice from, notice to, refund to, or signature of any one or more of them with respect to the tenancy under this Lease, including any renewal, extension, expiration, termination or modification of this Lease, shall be binding upon each and all of the persons executing this Lease as Tenant with the same force and effect as if each and all of them had so acted, so given or received such notice or refund, or so signed.  37. Representations. Tenant represents and warrants that (a) Tenant is duly incorporated or otherwise established or formed and validly existing under the laws of its state of incorporation, establishment or formation, (b) Tenant has and is duly qualified to do business in the state in which the Property is located, (c) Tenant has full corporate, partnership, trust, association or other appropriate power and authority to enter into this Lease and to perform all Tenant’s obligations hereunder, (d) each person (and all of the persons if more than one signs) signing this Lease on behalf of Tenant has the legal capacity and is duly and validly authorized to do so and (e) neither (i) the execution, delivery or performance of this Lease nor (ii) the consummation of the transactions contemplated hereby will violate or conflict with any provision of documents or instruments under which Tenant is constituted or to which Tenant is a party.  In addition, Tenant represents and warrants that none of (x) it, (y) its affiliates or partners nor (z) to the best of its knowledge, its members, shareholders or other equity owners or any of their respective employees, officers, directors, representatives or agents is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign 

 

64  Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) or other similar governmental action.  38. Confidentiality. Tenant shall keep the terms and conditions of this Lease and any information provided to Tenant or its employees, agents or contractors pursuant to Article 9 confidential and shall not (a) disclose to any third party any terms or conditions of this Lease or any other Lease-related document (including subleases, assignments, work letters, construction contracts, letters of credit, subordination agreements, non-disturbance agreements, brokerage agreements or estoppels) or (b) provide to any third party an original or copy of this Lease (or any Lease-related document). Landlord shall not release to any third party any non-public financial information or non-public information about Tenant’s ownership structure that Tenant gives Landlord or any non-public information regarding the Clinical Trial provided to Landlord in connection with Section 3.1. Notwithstanding the foregoing, confidential information under this Section may be released by Landlord or Tenant under the following circumstances: (x) if required by Applicable Laws (including, without limitation, as required in order to comply with public filing requirements of the Securities and Exchange Commission) or in any judicial proceeding; provided that the releasing party has given the other party reasonable notice of such requirement, if feasible, (y) to a party’s attorneys, accountants, brokers, lenders,  potential lenders, investors, potential investors and other bona fide consultants or advisers (with respect to this Lease only); provided such third parties agree to be bound by this Section or (z) to bona fide prospective assignees or subtenants of this Lease; provided they agree in writing to be bound by this Section.  39. Notices. Except as otherwise stated in this Lease, any notice, consent, demand, invoice, statement or other communication required or permitted to be given hereunder shall be in writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable international overnight delivery service, such as FedEx, or (c) facsimile or email transmission, so long as such transmission is followed within one (1) business day by delivery utilizing one of the methods described in Subsection 39(a) or (b). Any such notice, consent, demand, invoice, statement or other communication shall be deemed delivered (x) upon receipt, if given in accordance with Subsection 39(a); (y) one (1) business day after deposit with a reputable international overnight delivery service, if given if given in accordance with Subsection 39(b); or (z) upon transmission, if given in accordance with Subsection 39(c). Except as otherwise stated in this Lease, any notice, consent, demand, invoice, statement or other communication required or permitted to be given pursuant to this Lease shall be addressed to Tenant at the Premises, or to Landlord or Tenant at the addresses shown in Sections 2.9 and 2.10 or 2.11, respectively. Either party may, by notice to the other given pursuant to this Section, specify additional or different addresses for notice purposes.  40. Miscellaneous. 40.1. Landlord reserves the right to change the name of the Building or the Project in its sole discretion. 

 

65  40.2. To induce Landlord to enter into this Lease, Tenant agrees that it shall furnish to Landlord, from time to time, within ten (10) business days after receipt of Landlord’s written request, the most recent year-end unconsolidated financial statements reflecting Tenant’s current financial condition audited by a nationally recognized accounting firm. Tenant shall, within one hundred twenty (120) days after the end of Tenant’s financial year, furnish Landlord with a certified copy of Tenant’s year-end unconsolidated financial statements for the previous year audited by an accounting firm of similar size and reputation to the firm currently used by Tenant (i.e., Squar Milner). Tenant represents and warrants that all financial statements, records and information furnished by Tenant to Landlord in connection with this Lease are true, correct and complete in all respects. If audited financials are not otherwise prepared, unaudited financials complying with generally accepted accounting principles and certified by the chief financial officer of Tenant as true, correct and complete in all respects shall suffice for purposes of this Section. This Section shall not apply so long as Tenant is a publicly traded company and its financial statements are readily available by public means, e.g., the internet.  40.3. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option for a lease, and shall not be effective as a lease or otherwise until execution by and delivery to both Landlord and Tenant.  40.4. The terms of this Lease are intended by the parties as a final, complete and exclusive expression of their agreement with respect to the terms that are included herein, and may not be contradicted or supplemented by evidence of any other prior or contemporaneous agreement (except by any written agreement executed and delivered by Landlord and Tenant concurrently with the execution and delivery of this Lease).  40.5. Landlord may, but shall not be obligated to, record a short form or memorandum hereof without Tenant’s consent. Tenant will not record a short form or memorandum hereof. Within ten (10) business days after receipt of written request from Landlord, Tenant shall execute a termination of any short form or memorandum of lease recorded with respect hereto. If Landlord elects to record a short form or memorandum of this Lease, Landlord shall be responsible for the cost of recording such short form or memorandum of this Lease, including any transfer or other taxes incurred in connection with such recordation. Neither party shall record this Lease.  40.6. Where applicable in this Lease, the singular includes the plural and the masculine or neuter includes the masculine, feminine and neuter. The words “include,” “includes,” “included” and “including” mean “‘include,’ etc., without limitation.” The word “shall” is mandatory and the word “may” is permissive. The section headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease. Landlord and Tenant have each participated in the drafting and negotiation of this Lease, and the language in all parts of this Lease shall be in all cases construed as a whole according to its fair meaning and not strictly for or against either Landlord or Tenant.  40.7. Except as otherwise expressly set forth in this Lease, each party shall pay its own costs and expenses incurred in connection with this Lease and such party’s performance under this Lease; provided that, if either party commences an action, proceeding, demand, claim, action, cause of action or suit against the other party arising out of or in connection with this 

 

66  Lease, then the substantially prevailing party shall be reimbursed by the other party for all reasonable costs and expenses, including reasonable attorneys’ fees and expenses, incurred by the substantially prevailing party in such action, proceeding, demand, claim, action, cause of action or suit, and in any appeal in connection therewith (regardless of whether the applicable action, proceeding, demand, claim, action, cause of action, suit or appeal is voluntarily withdrawn or dismissed). In addition, Landlord shall, upon demand, be entitled to all reasonable attorneys’ fees and all other reasonable costs incurred in the preparation and service of any notice of Default hereunder, regardless of whether a legal action is subsequently commenced, or incurred in connection with any contested matter or other proceeding in bankruptcy court concerning this Lease.   Lease. 40.8. Time is of the essence with respect to the performance of every provision of this  40.9. Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition.  40.10. Notwithstanding  anything  to  the  contrary  contained  in  this  Lease,  Tenant’s obligations under this Lease are independent and shall not be conditioned upon performance by Landlord.  40.11. Whenever consent or approval of either party is required, that party shall not unreasonably withhold, condition or delay such consent or approval, except as may be expressly set forth to the contrary.  40.12. Any provision of this Lease that shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof, and all other provisions of this Lease shall remain in full force and effect and shall be interpreted as if the invalid, void or illegal provision did not exist.  40.13. Each of the covenants, conditions and agreements herein contained shall inure to the benefit of and shall apply to and be binding upon the parties hereto and their respective heirs; legatees; devisees; executors; administrators; and permitted successors and assigns.  This Lease is for the sole benefit of the parties and their respective heirs, legatees, devisees, executors, administrators and permitted successors and assigns, and nothing in this Lease shall give or be construed to give any other person or entity any legal or equitable rights. Nothing in this Section shall in any way alter the provisions of this Lease restricting assignment or subletting.  40.14. This Lease shall be governed by, construed and enforced in accordance with the laws of the state in which the Premises are located, without regard to such state’s conflict of law principles.  40.15. [Intentionally omitted]  40.16. This Lease may be executed in one or more counterparts, each of which, when taken together, shall constitute one and the same document. 

 

67  40.17. No provision of this Lease may be modified, amended or supplemented except by an agreement in writing signed by Landlord and Tenant.  40.18. No waiver of any term, covenant or condition of this Lease shall be binding upon Landlord unless executed in writing by Landlord. The waiver by Landlord of any breach or default of any term, covenant or condition contained in this Lease shall not be deemed to be a waiver of any preceding or subsequent breach or default of such term, covenant or condition or any other term, covenant or condition of this Lease.  40.19. To the extent permitted by Applicable Laws, the parties waive trial by jury in any action, proceeding or counterclaim brought by the other party hereto related to matters arising out of or in any way connected with this Lease; the relationship between Landlord and Tenant; Tenant’s use or occupancy of the Premises; or any claim of injury or damage related to this Lease or the Premises.  40.20. Subject  to  compliance  with  Applicable  Laws  and  Landlord’s  prior  approval (which approval shall not be unreasonably withheld) of all plans and specifications for such items (which shall be installed either as an Alteration or as part of the initial Tenant Improvements), Landlord will permit Tenant to install and operate (a) a kitchen within the Premises containing a stove, oven, sink and any other reasonably related fixtures and appliances, and (b) a barbecue grill at a location reasonably approved by Landlord, in each case for use by Tenant’s employees and occasional use for company functions of Tenant at the Premises. Tenant will be responsible for performing commercially reasonable repair and maintenance with respect to the items listed in Subsections (a) and (b) above and will otherwise comply with any reasonable requirements of Landlord with respect to the maintenance of such items.  41. [Intentionally omitted]  42. Option to Extend Term. Tenant shall have one (1) option (”Option”) to extend the Term by five (5) years as to the entire Premises (and no less than the entire Premises) upon the following terms and conditions. Any extension of the Term pursuant to the Option shall be on all the same terms and conditions as this Lease, except as follows:  42.1. Base Rent at the commencement of the Option term shall equal the then-current fair market value for comparable office and laboratory space in the UTC submarket of comparable age, quality, level of finish and proximity to amenities and public transit, and containing the systems and improvements present in the Premises as of the date that Tenant gives Landlord written notice of Tenant’s election to exercise the Option (“FMV”), and shall be further increased on each annual anniversary of the Option term commencement date by three percent (3%). Tenant may, no more than fifteen (15) months prior to the date the Term is then scheduled to expire, request Landlord’s estimate of the FMV for the Option term. Landlord shall, within fifteen (15) days after receipt of such request, give Tenant a written proposal of such FMV. If Tenant gives written notice to exercise the Option, such notice shall specify whether Tenant accepts Landlord’s proposed estimate of FMV. If Tenant does not accept the FMV, then the parties shall endeavor to agree upon the FMV, taking into account all relevant factors, including (a) the size of the Premises, (b) the length of the Option term, (c) rent in comparable buildings in the relevant submarket, including concessions offered to new tenants, 

 

68  such as free rent, tenant improvement allowances and moving allowances, (d) Tenant’s creditworthiness and (e) the quality and location of the Building and the Project. In the event that the parties are unable to agree upon the FMV within thirty (30) days after Tenant notifies Landlord that Tenant is exercising the Option, then either party may request that the same be determined as follows: a senior officer of a nationally recognized leasing brokerage firm with local knowledge of the UTC laboratory/research and development leasing submarket (the “Baseball Arbitrator”) shall be selected and paid for jointly by Landlord and Tenant. If Landlord and Tenant are unable to agree upon the Baseball Arbitrator, then the same shall be designated by the local chapter of the Judicial Arbitration and Mediation Services or any successor organization thereto (the “JAMS”). The Baseball Arbitrator selected by the parties or designated by JAMS shall (y) have at least ten (10) years’ experience in the leasing of laboratory/research and development space in the UTC submarket and (z) not have been employed or retained by either Landlord or Tenant or any affiliate of either for a period of at least ten (10) years prior to appointment pursuant hereto. Each of Landlord and Tenant shall submit to the Baseball Arbitrator and to the other party its determination of the FMV. The Baseball Arbitrator shall grant to Landlord and Tenant a hearing and the right to submit evidence.  The  Baseball Arbitrator shall determine which of the two (2) FMV determinations more closely represents the actual FMV. The arbitrator may not select any other FMV for the Premises other than one submitted by Landlord or Tenant. The FMV selected by the Baseball Arbitrator shall be binding upon Landlord and Tenant and shall serve as the basis for determination of Base Rent payable for the Option term. If, as of the commencement date of the Option term, the amount of Base Rent payable during the Option term shall not have been  determined, then,  pending such determination, Tenant shall pay Base Rent equal to the Base Rent payable with respect to the last year of the then-current Term. After the final determination of Base Rent payable for the Option term, the parties shall promptly execute a written amendment to this Lease specifying the amount of Base Rent to be paid during the Option term. Any failure of the parties to execute such amendment shall not affect the validity of the FMV determined pursuant to this Section.  42.2. The Option is not assignable separate and apart from this Lease.  42.3. The Option is conditional upon Tenant giving Landlord written notice of its election to exercise the Option not more than fifteen (15) months and not less than twelve (12) months prior to the end of the expiration of the then-current Term. Time shall be of the essence as to Tenant’s exercise of the Option. Tenant assumes full responsibility for maintaining a record of the deadlines to exercise the Option. Tenant acknowledges that it would be inequitable to require Landlord to accept any exercise of the Option after the date provided for in this Section.  42.4. Notwithstanding anything contained in this Article to the contrary, Tenant shall not have the right to exercise the Option:  (a) During the time commencing from the date Landlord delivers to Tenant a written notice that Tenant is in default under any provisions of this Lease and continuing until Tenant has cured the specified default to Landlord’s reasonable satisfaction; or  (b) At any time after any Default as described in Article 31 of the Lease and continuing until Tenant cures any such Default, if such Default is susceptible to being cured; or 

 

69  (c) In the event that Landlord has delivered to Tenant notice two (2) or more times during the twelve (12)-month period immediately prior to the date that Tenant intends to exercise the Option, that Tenant is in monetary or material non-monetary default in the performance of its obligations hereunder, whether or not Tenant has cured such defaults.  42.5. The period of time within which Tenant may exercise the Option shall not be extended or enlarged by reason of Tenant’s inability to exercise such Option because of the provisions of Section 42.4.  42.6. All of Tenant’s rights under the provisions of the Option shall terminate and be of no further force or effect even after Tenant’s due and timely exercise of the Option if, after such exercise, but prior to the commencement date of the new term, (a) Tenant fails to pay to Landlord a monetary obligation of Tenant for a period of twenty (20) days after written notice from Landlord to Tenant, (b) Tenant fails to commence to cure a default (other than a monetary default) within thirty (30) days after the date Landlord gives notice to Tenant of such default or (c) Tenant has defaulted under this Lease three (3) or more times and a service or late charge under Section 31.1 has become payable for any such default, whether or not Tenant has cured such defaults.  43. Rooftop Access. Landlord hereby grants to Tenant the Rooftop License (as defined in Exhibit K) subject to the terms and conditions set forth in Exhibit K attached hereto. Tenant acknowledges that the rooftop of the Building is currently subject to a lease (the “Rooftop Lease”) with Global Tower, LLC (together with its successors, assigns, subtenants and licensees, “Global”). Notwithstanding anything to the contrary in this Lease, Tenant acknowledges and agrees that Tenant shall, upon prior notice, provide Global with access to the Building (including, without limitation, the Building rooftop) at all times to exercise Global’s rights under the Rooftop Lease, including installation of any equipment permitted to be installed pursuant to the Rooftop Lease (provided, however, that Tenant shall be permitted to require that a representative of Tenant accompany Global during any such access).  [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

 

 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first above written.  LANDLORD:  BMR-AXIOM LP, a Delaware limited partnership   By:         Name:    Title:         TENANT:  LA JOLLA PHARMACEUTICAL COMPANY, a California corporation    By:         Name:    Title:      

 

A-1-1  EXHIBIT A PREMISES 

 

MCFARLANE ARCHITECTS SCALE: 1" = 20'-0" X:\MA_Projects\16-184-01_LJPC\CAD\10_Archive\00_MA  Clean  Backgrounds\4550_1st  floor.dwg 1272016                                                                 4550 TOWNE CENTRE COURT - FIRST FLOOR PLAN N  ELEV. MACHINE 107.2  ELEV     FI RE  RM. LAB UTILITY 107.1 COMMON SHIPPING RECEIVING 107 SDG&E 109 FUTURE COMMON SPACE 130 FUTURE TENANT SPACE 140 STAIRS S103 ELECT. 108 UP MEN 102 JAN. 103 ELEV MACHINE ROOM 103.1 STORAGE 104 MPOE 105 ELEV WOMEN 101 STAIRS S102 ELEV 1 FUTURE TENANT SPACE 120 STAIRS S101 RI SE R  U P  U P  

 

MCFARLANE ARCHITECTS SCALE: 1" = 20'-0" X:\MA_Projects\16-184-01_LJPC\CAD\10_Archive\00_MA  Clean  Backgrounds\4550_2nd  floor.dwg 1272016  ELEV 3 FUTURE TENANT SPACE 230 ELECTRICAL 206 IT 207 FUTURE TENANT SPACE 240 STAIRS S203 UP MEN 202 JANITOR 203 STORAGE 205 STORAGE 204 ELEV. LOBBY 200 ELEV 2 STAIRS S202 ELEV WOMEN 201 FS FUTURE TENANT SPACE 220 STAIRS S201 FI R E  RI SE R                                                                                   U P  U P  

 

MCFARLANE ARCHITECTS SCALE: 1" = 20'-0" X:\MA_Projects\16-184-01_LJPC\CAD\10_Archive\00_MA  Clean  Backgrounds\4550_2nd  floor.dwg 1272016  4550 TOWNE CENTRE COURT - SECOND FLOOR PLAN N  

 

MCFARLANE ARCHITECTS SCALE: 1" = 20'-0" X:\MA_Projects\16-184-01_LJPC\CAD\10_Archive\00_MA  Clean  Backgrounds\4550_3rd  floor.dwg 1272016                                                                 4550 TOWNE CENTRE COURT - THIRD FLOOR PLAN N  330 340 ELEV 3 S303 FUTURE TENANT SPACE ELECTRICAL 306 IT 307 FUTURE TENANT SPACE STAIRS DN MEN 302 JAN. 303 STORAGE 305 STORAGE 304 LOBBY 300 ELEV STAIRS S302 ELEV 1 WOMEN 301 FUTURE TENANT SPACE 320 STAIRS S301 FI R E  RI SE R  D N  D N  

 

B-1  EXHIBIT B WORK LETTER This Work Letter (this “Work Letter”) is made and entered into as of the  day of December, 2016, by and between BMR-AXIOM LP, a Delaware limited partnership (“Landlord”), and LA JOLLA PHARMACEUTICAL COMPANY, a California corporation (“Tenant”), and is attached to and made a part of that certain Lease dated as of December , 2016 (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time, the “Lease”), by and between Landlord and Tenant for the Premises located at 4550 Towne Centre Court, San Diego, California. All capitalized terms used but not otherwise defined herein shall have the meanings given them in the Lease.  1. General Requirements.  1.1. Authorized Representatives.  (a) Landlord designates, as Landlord’s authorized representative (“Landlord’s Authorized Representative”), (i) Federico Mina as the person authorized to initial plans, drawings, approvals and to sign change orders pursuant to this Work Letter and (ii) an officer of Landlord as the person authorized to sign any amendments to this Work Letter or the Lease. Tenant shall not be obligated to respond to or act upon any such item until such item has been initialed or signed (as applicable) by the appropriate Landlord’s Authorized Representative. Landlord may change Landlord’s Authorized Representative upon one (1) business day’s prior written notice to Tenant. Landlord’s Authorized Representative and a representative of Landlord’s lender will have access to the Premises at all times during the construction of the Tenant Improvements, and if requested by Landlord, Tenant’s Authorized Representative will be present during any site visit at a mutually agreed time.  (b) Tenant designates Niklas Bandak (“Tenant’s Authorized Representative”) as the person authorized to initial and sign all plans, drawings, change orders and approvals pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any such item until such item has been initialed or signed (as applicable) by Tenant’s Authorized Representative. Tenant may change Tenant’s Authorized Representative upon one (1) business day’s prior written notice to Landlord.  1.2. Schedule. The schedule for design and development of the Tenant Improvements, including the time periods for preparation and review of construction documents, approvals and performance, shall be in accordance with a schedule to be prepared by Tenant (the “Schedule”). Tenant shall prepare the Schedule so that it is a reasonable schedule for the completion of the Tenant Improvements. The Schedule shall clearly identify all activities requiring Landlord participation, including specific dates and time periods when Tenant’s contractor will require access to areas of the Project outside of the Premises. As soon as the Schedule is completed, Tenant shall deliver the same to Landlord for Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed. Such Schedule shall be approved or disapproved by Landlord within ten (10) business days after delivery to Landlord. Landlord’s failure to respond within such ten (10) business day period shall be deemed approval by Landlord.   If 

 

B-2  Landlord disapproves the Schedule, then Landlord shall notify Tenant in writing of its objections to such Schedule, and the parties shall confer and negotiate in good faith to reach agreement on the Schedule. The Schedule shall be subject to adjustment as mutually agreed upon in writing by the parties, or as provided in this Work Letter.  1.3. Tenant’s Architects, Contractors and Consultants. The architect, engineering consultants, design team, general contractor and subcontractors responsible for the construction of the Tenant Improvements shall be selected by Tenant and approved by Landlord in accordance with Section 4.7 of the Lease. Landlord may refuse to use any architects, consultants, contractors, subcontractors or material suppliers that Landlord reasonably believes could cause labor disharmony or may not have sufficient experience, in Landlord’s reasonable opinion, to perform work in an occupied Class “A” laboratory research building and in lab areas. All Tenant contracts related to the Tenant Improvements shall provide that Tenant may assign such contracts and any warranties with respect to the Tenant Improvements to Landlord at any time and a copy of all such contracts will be provided to Landlord (including any contracts between the general contractor and any subcontractors performing work in excess of $100,000).  2. Tenant Improvements. All Tenant Improvements shall be performed by Tenant’s contractor, at Tenant’s sole cost and expense (subject to Landlord’s obligations with respect to payment of the Base TI Allowance and, if properly requested by Tenant pursuant to the terms of the Lease, the Additional TI Allowance) and in accordance with the Approved Plans (as defined below), the Lease and this Work Letter. To the extent that the total projected cost of the Tenant Improvements (as projected by Landlord) exceeds the TI Allowance (such excess, the “Excess TI Costs”), Tenant shall pay the costs of the Tenant Improvements on a pari passu basis with Landlord as such costs become due, in the proportion of Excess TI Costs payable by Tenant to the Base TI Allowance (and, if properly requested by Tenant pursuant to the Lease, the Additional TI Allowance). If the cost of the Tenant Improvements (as projected by Landlord) increases over Landlord’s initial projection, then Landlord may notify Tenant and Tenant shall pay any additional Excess TI Costs in the same way that Tenant paid the initial Excess TI Costs. If Tenant fails to pay, or is late in paying, any sum due to Landlord under this Work Letter, then after notice and the expiration of a ten (10) business day cure period, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of Rent (including the right to interest and the right to assess a late charge), and for purposes of any litigation instituted with regard to such amounts the same shall be considered Rent. All material and equipment furnished by Tenant or its contractors as the Tenant Improvements shall be new or “like new;” the Tenant Improvements shall be performed in a first-class, workmanlike manner; and the quality of the Tenant Improvements shall be of a nature and character not less than the Building Standard. Tenant shall take, and shall require its contractors to take, commercially reasonable steps to protect the Premises during the performance of any Tenant Improvements, including covering or temporarily removing any window coverings so as to guard against dust, debris or damage. All Tenant Improvements shall be performed in accordance with Article 17 of the Lease; provided that, notwithstanding anything in the Lease or this Work Letter to the contrary, in the event of a conflict between this Work Letter and Article 17 of the Lease, the terms of this Work Letter shall govern. 

 

B-3  2.1. Work Plans. Tenant shall prepare and submit to Landlord for approval schematics covering the Tenant Improvements prepared in conformity with the applicable provisions of this Work Letter (the “Draft Schematic Plans”). The Draft Schematic Plans shall contain sufficient information and detail to accurately describe the proposed design to Landlord and such other information as Landlord may reasonably request. Landlord shall notify Tenant in writing within five (5) business days after receipt of the Draft Schematic Plans whether Landlord approves or objects to the Draft Schematic Plans and of the manner, if any, in which the Draft Schematic Plans are unacceptable. Landlord’s failure to respond within such five (5) business day period shall be deemed approval by Landlord. If Landlord reasonably objects to the Draft Schematic Plans, then Tenant shall revise the Draft Schematic Plans and cause Landlord’s objections to be remedied in the revised Draft Schematic Plans. Tenant shall then resubmit the revised Draft Schematic Plans to Landlord for approval, such approval not to be unreasonably withheld, conditioned or delayed. Landlord’s approval of or objection to revised Draft Schematic Plans and Tenant’s correction of the same shall be in accordance with this Section until Landlord has approved the Draft Schematic Plans in writing or been deemed to have approved them. The iteration of the Draft Schematic Plans that is approved or deemed approved by Landlord without objection shall be referred to herein as the “Approved Schematic Plans.”  2.2. Construction Plans. Tenant shall prepare final plans and specifications for the Tenant Improvements that (a) are consistent with and are logical evolutions of the Approved Schematic Plans and (b) incorporate any other Tenant-requested (and Landlord-approved) Changes (as defined below). As soon as such final plans and specifications (“Construction Plans”) are completed, Tenant shall deliver the same to Landlord for Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed. All such Construction Plans shall be submitted by Tenant to Landlord in electronic .pdf, CADD and full-size hard copy formats, and shall be approved or disapproved by Landlord within ten (10) business days after delivery to Landlord. Landlord’s failure to respond within such ten (10) business day period shall be deemed approval by Landlord. If the Construction Plans are disapproved by Landlord (which disapproval shall be limited to items which are different from, or which are not logical evolutions of the Approved Schematic Plans), then Landlord shall notify Tenant in writing of its objections to such Construction Plans, and the parties shall confer and negotiate in good faith to reach agreement on the Construction Plans. At the same time as Tenant’s architect submits the Construction Plans to the City for approval, Tenant will submit two (2) copies of such Construction Plans to Landlord. In the event Landlord has any changes to the Construction Plans (as permitted under this Section), Tenant will cause the Construction Plans submitted to the City to be revised and resubmitted as required to incorporate such changes into the final Construction Plans. The Construction Plans so approved, and all change orders specifically permitted by this Work Letter, are referred to herein as the “Approved Plans.”  2.3. Changes to the Tenant Improvements. Any changes to the Approved Plans (each, a “Change”) shall be requested and instituted in accordance with the provisions of this Article 2 and shall be subject to the written approval of the non-requesting party in accordance with this Work Letter.  (a) Change Request.   Either Landlord or Tenant may request Changes after Landlord  approves  the  Approved  Plans  by  notifying  the  other  party  thereof  in  writing  in 

 

B-4  substantially the same form as the AIA standard change order form (a “Change Request”), which Change Request shall detail the nature and extent of any requested Changes, including (a) the Change, (b) the party required to perform the Change and (c) any modification of the Approved Plans and the Schedule, as applicable, necessitated by the Change. If the nature of a Change requires revisions to the Approved Plans, then the requesting party shall be solely responsible for the cost and expense of such revisions and any increases in the cost of the Tenant Improvements as a result of such Change. Change Requests shall be signed by the requesting party’s Authorized Representative.  (b) Approval of Changes. All Change Requests shall be subject to the other party’s prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed. The non-requesting party shall have five (5) business days after receipt of a Change Request to notify the requesting party in writing of the non-requesting party’s decision either to approve or object to the Change Request. The non-requesting party’s failure to respond within such five (5) business day period shall be deemed approval by the non-requesting party.  2.4. Preparation of Estimates. Tenant shall, before proceeding with any Change, using its best efforts, prepare as soon as is reasonably practicable (but in no event more than five (5) business days after delivering a Change Request to Landlord or receipt of a Change Request) an estimate of the increased costs or savings that would result from such Change, as well as an estimate of such Change’s effects on the Schedule. Landlord shall have five (5) business days after receipt of such information from Tenant to (a) in the case of a Tenant-initiated Change Request, approve or reject such Change Request in writing, or (b) in the case of a Landlord- initiated Change Request, notify Tenant in writing of Landlord’s decision either to proceed with or abandon the Landlord-initiated Change Request.  2.5. Quality Control Program; Coordination. Tenant shall provide Landlord with information regarding the following (together, the “QCP”): (a) Tenant’s general contractor’s quality control program and (b) evidence of subsequent monitoring and action plans. The QCP shall be subject to Landlord’s reasonable review and approval and shall specifically address the Tenant Improvements. Tenant shall ensure that the QCP is regularly implemented on a scheduled basis and shall provide Landlord with reasonable prior notice and access to attend all inspections and meetings between Tenant and its general contractor. At the conclusion of the Tenant Improvements, Tenant shall deliver the quality control log to Landlord, which shall include all records of quality control meetings and testing and of inspections held in the field, including inspections relating to concrete, steel roofing, piping pressure testing and system commissioning.  3. Completion of Tenant Improvements. Tenant, at its sole cost and expense (except for the Base TI Allowance and, if properly requested by Tenant pursuant to the terms of the Lease, the Additional TI Allowance), shall perform and complete the Tenant Improvements in all respects (a) in substantial conformance with the Approved Plans, (b) otherwise in compliance with provisions of the Lease and this Work Letter and (c) in accordance with Applicable Laws, the requirements of Tenant’s insurance carriers, the requirements of Landlord’s insurance carriers (to the extent Landlord provides its insurance carriers’ requirements to Tenant) and the board of fire underwriters having jurisdiction over the Premises.   The Tenant Improvements shall be 

 

B-5  deemed completed at such time as Tenant shall furnish to Landlord (t) evidence satisfactory to Landlord that (i) all Tenant Improvements have been completed and paid for in full (which shall be evidenced by the architect’s certificate of completion and the general contractor’s and each subcontractor’s and material supplier’s final unconditional waivers and releases of liens, each in a form acceptable to Landlord and complying with Applicable Laws, and a Certificate of Substantial Completion in the form of the American Institute of Architects document G704, executed by the project architect and the general contractor, together with a statutory notice of substantial completion from the general contractor), (ii) all Tenant Improvements have been accepted by Landlord, (iii) any and all liens related to the Tenant Improvements have either been discharged of record (by payment, bond, order of a court of competent jurisdiction or otherwise) or waived by the party filing such lien and (iv) no security interests relating to the Tenant Improvements are outstanding, (u) all certifications and approvals with respect to the Tenant Improvements that may be required from any Governmental Authority and any board of fire underwriters or similar body for the use and occupancy of the Premises (including a certificate of occupancy (or its substantial equivalent) for the Premises for the Permitted Use), (v) certificates of insurance required by the Lease to be purchased and maintained by Tenant, (w) an affidavit from Tenant’s architect certifying that all work performed in, on or about the Premises is in accordance with the Approved Plans, (x) complete “as built” drawing print sets, project specifications and shop drawings and electronic CADD files on disc (showing the Tenant Improvements as an overlay on the Building “as built” plans (provided that Landlord provides the Building “as-built” plans provided to Tenant) of all contract documents for work performed by their architect and engineers in relation to the Tenant Improvements, (y) a commissioning report prepared by a licensed, qualified commissioning agent hired by Tenant and approved by Landlord for all new or affected mechanical, electrical and plumbing systems (which report Landlord may hire a licensed, qualified commissioning agent to peer review, and whose reasonable recommendations Tenant’s commissioning agent shall perform and incorporate into a revised report) and (z) such other “close out” materials as Landlord reasonably requests consistent with Landlord’s own requirements for its contractors or which are required by Landlord’s lender, such as copies of manufacturers’ warranties, operation and maintenance manuals and the like. In connection with Tenant’s performance of the Tenant Improvements, Tenant will keep a log for all of the following categories in connection with the Tenant Improvements: change orders, requests for information and lien releases, and will keep and maintain a copy of the minutes from weekly construction meetings, a list of all subcontractors (including contract amounts) working on the Tenant Improvements, as well as an up to date Schedule and Approved Budget (as defined below) and will make the foregoing items available to Landlord as part of each Fund Request or as otherwise requested by Landlord.  4. Insurance.  4.1. Property Insurance. At all times during the period beginning with commencement of construction of the Tenant Improvements and ending with final completion of the Tenant Improvements, Tenant shall maintain, or cause to be maintained (in addition to the insurance required of Tenant pursuant to the Lease), property insurance naming Landlord and the Landlord Parties as additional insureds. Such policy shall, on a completed values basis for the full insurable value at all times, insure against loss or damage by fire, vandalism and malicious mischief and other such risks as are customarily covered by the so-called “broad form extended 

 

B-6  coverage endorsement” upon all Tenant Improvements and the general contractor’s and any subcontractors’ machinery, tools and equipment, all while each forms a part of, or is contained in, the Tenant Improvements or any temporary structures on the Premises, or is adjacent thereto; provided that, for the avoidance of doubt, insurance coverage with respect to the general contractor’s and any subcontractors’ machinery, tools and equipment shall be carried on a primary basis by such general contractor or the applicable subcontractor(s). Tenant agrees to pay any deductible, and Landlord is not responsible for any deductible, for a claim under such insurance. Such property insurance shall contain an express waiver of any right of subrogation by the insurer against Landlord and the Landlord Parties, and shall name Landlord and its affiliates as loss payees as their interests may appear.  4.2. Workers’ Compensation Insurance. At all times during the period of construction of the Tenant Improvements, Tenant shall, or shall cause its contractors or subcontractors to, maintain statutory workers’ compensation insurance as required by Applicable Laws.  5. Liability. Tenant assumes sole responsibility and liability for any and all injuries or the death of any persons, including Tenant’s contractors and subcontractors and their respective employees, agents and invitees, and for any and all damages to property caused by, resulting from or arising out of any act or omission on the part of Tenant, Tenant’s contractors or subcontractors, or their respective employees, agents and invitees in the prosecution of the Tenant Improvements. Tenant agrees to Indemnify the Landlord Indemnitees from and against all Claims due to, because of or arising out of any and all such injuries, death or damage, whether real or alleged, and Tenant and Tenant’s contractors and subcontractors shall assume and defend at their sole cost and expense all such Claims; provided, however, that nothing contained in this Work Letter shall be deemed to Indemnify Landlord from or against liability caused by Landlord’s negligence or willful misconduct. Any deficiency in design or construction of the Tenant Improvements shall be solely the responsibility of Tenant, notwithstanding the fact that Landlord may have approved of the same in writing.  6. TI Allowance.  6.1. Application of TI Allowance. Landlord shall contribute, in the following order, the Base TI Allowance and, if properly requested by Tenant pursuant to the terms of the Lease, the Additional TI Allowance toward the costs and expenses incurred in connection with the performance of the Tenant Improvements, in accordance with Article 4 of the Lease. If the entire TI Allowance is not applied toward or reserved for the costs of the Tenant Improvements, then Tenant shall not be entitled to a credit of such unused portion of the TI Allowance. Tenant may apply the Base TI Allowance and, if properly requested by Tenant pursuant to the terms of the Lease, the Additional TI Allowance for the payment of construction and other costs in accordance with the terms and provisions of the Lease.  6.2. Approval of Budget for the Tenant Improvements. Notwithstanding anything to the contrary set forth elsewhere in this Work Letter or the Lease, Landlord shall not have any obligation to expend any portion of the TI Allowance until Landlord and Tenant shall have approved in writing the budget for the Tenant Improvements (the “Approved Budget”). Prior to Landlord’s approval of the Approved Budget, Tenant shall pay all of the costs and expenses incurred in connection with the Tenant Improvements as they become due.  Landlord shall not be 

 

B-7  obligated to reimburse Tenant for costs or expenses relating to the Tenant Improvements that exceed the amount of the TI Allowance. Landlord shall not unreasonably withhold, condition or delay its approval of any budget for Tenant Improvements that is proposed by Tenant.  6.3. Fund Requests. Upon submission by Tenant to Landlord (which submittals must be provided on or before the first (1st) day of each month starting in the first month that Tenant is eligible to request payment of the TI Allowance) of (a) a statement (a “Fund Request”) setting forth the total amount of the TI Allowance requested, (b) a summary of the Tenant Improvements performed using AIA standard form Application for Payment (G 702) executed by the general contractor and by the architect, (c) invoices from the general contractor, the architect, and any subcontractors, material suppliers and other parties requesting payment with respect to the amount of the TI Allowance then being requested, (d) unconditional lien releases from the general contractor and each subcontractor and material supplier with respect to previous payments made by either Landlord or Tenant for the Tenant Improvements in a form acceptable to Landlord and complying with Applicable Laws, (e) conditional lien releases from the general contractor and each subcontractor and material supplier with respect to the Tenant Improvements performed that correspond to the Fund Request each in a form acceptable to Landlord and complying with Applicable Laws, (f) all information required by the last sentence of Section 3 above, (g) copies of all change orders issued in the applicable payment period, and (h) any other documentation required by Landlord’s lender as a condition to funding of loan proceeds, then Landlord shall, within thirty (30) days following receipt by Landlord of a Fund Request and the accompanying materials required by this Section, pay to (as elected by Landlord) the applicable contractors, subcontractors and material suppliers or Tenant (for reimbursement for payments made by Tenant to such contractors, subcontractors or material suppliers either prior to Landlord’s approval of the Approved TI Budget or as a result of Tenant’s decision to pay for the Tenant Improvements itself and later seek reimbursement from Landlord in the form of one lump sum payment in accordance with the Lease and this Work Letter), the amount of Tenant Improvement costs set forth in such Fund Request; provided, however, that Landlord shall not be obligated to make any payments under this Section until the budget for the Tenant Improvements is approved in accordance with Section 6.2, and any Fund Request under this Section shall be subject to the payment limits set forth in Section 6.2 above and Article 4 of the Lease. Notwithstanding anything in this Section to the contrary, Tenant shall not submit a Fund Request more often than every thirty (30) days and may not submit a Fund Request until the Clinical Trial Termination Option has expired or is void and of no further effect. Any additional Fund Requests submitted by Tenant shall be void and of no force or effect.  6.4. Accrual Information. In addition to the other requirements of this Section 6, Tenant shall, no later than the third (3rd) business day of each month until the Tenant Improvements are complete, provide Landlord with an estimate of (a) the percentage of design and other soft cost work that has been completed, (b) design and other soft costs spent through the end of the previous month, both from commencement of the Tenant Improvements and solely for the previous month, (c) the percentage of construction and other hard cost work that has been completed, (d) construction and other hard costs spent through the end of the previous month, both from commencement of the Tenant Improvements and solely for the previous month, and (e) the date of Substantial Completion of the Tenant Improvements. 

 

B-8  7. Miscellaneous.  7.1. Incorporation of Lease Provisions. Sections 40.6 through 40.19 of the Lease are incorporated into this Work Letter by reference, and shall apply to this Work Letter in the same way that they apply to the Lease.  7.2. General. Except as otherwise set forth in the Lease or this Work Letter, this Work Letter shall not apply to improvements performed in any additional premises added to the Premises at any time or from time to time, whether by any options under the Lease or otherwise; or to any portion of the Premises or any additions to the Premises in the event of a renewal or extension of the original Term, whether by any options under the Lease or otherwise, unless the Lease or any amendment or supplement to the Lease expressly provides that such additional premises are to be delivered to Tenant in the same condition as the initial Premises.   [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

 

B-9  IN WITNESS WHEREOF, Landlord and Tenant have executed this Work Letter to be effective on the date first above written.  LANDLORD:  BMR-AXIOM LP, a Delaware limited partnership   By:         Name:    Title:        TENANT:  LA JOLLA PHARMACEUTICAL COMPANY, a California corporation    By:         Name:    Title:      

 

B-1-1  EXHIBIT B-1  TENANT WORK INSURANCE SCHEDULE  Tenant shall be responsible for requiring all of Tenant contractors doing construction or renovation work to purchase and maintain such insurance as shall protect it from the claims set forth below which may arise out of or result from any Tenant Work whether such Tenant Work is completed by Tenant or by any Tenant contractors or by any person directly or indirectly employed by Tenant or any Tenant contractors, or by any person for whose acts Tenant or any Tenant contractors may be liable:  1. Claims under workers’ compensation, disability benefit and other similar employee benefit acts which are applicable to the Tenant Work to be performed.  2. Claims for damages because of bodily injury, occupational sickness or disease, or death of employees under any applicable employer’s liability law.  3. Claims for damages because of bodily injury, or death of any person other than Tenant’s or any Tenant contractors’ employees.  4. Claims for damages insured by usual personal injury liability coverage which are sustained (a) by any person as a result of an offense directly or indirectly related to the employment of such person by Tenant or any Tenant contractors or (b) by any other person.  5. Claims for damages, other than to the Tenant Work itself, because of injury to or destruction of tangible property, including loss of use therefrom.  6. Claims for damages because of bodily injury or death of any person or property damage arising out of the ownership, maintenance or use of any motor vehicle.  Tenant contractors’ Commercial General Liability Insurance shall include premises/operations (including explosion, collapse and underground coverage if such Tenant Work involves any underground work), elevators, independent contractors, products and completed operations, and blanket contractual liability on all written contracts, all including broad form property damage coverage.  Tenant contractors’ Commercial General, Automobile, Employers and Umbrella Liability Insurance shall be written for not less than limits of liability as follows:  a. Commercial General Liability:  Bodily Injury and Property Damage Commercially reasonable amounts,  but in any event no less than $1,000,000 per occurrence and $2,000,000 general aggregate, with $2,000,000 products and completed operations aggregate. 

 

B-1-2  b. Commercial Automobile Liability:  Bodily Injury and Property Damage $1,000,000 per accident  c. Employer’s Liability:  Each Accident $500,000 Disease – Policy Limit $500,000 Disease – Each Employee $500,000  d. Umbrella Liability:  Bodily Injury and Property Damage Commercially reasonable amounts (excess of coverages a, b and c above), but in any event no less than $5,000,000 per occurrence / aggregate.  All subcontractors for Tenant contractors shall carry the same coverages and limits as specified above, unless different limits are reasonably approved by Landlord. The foregoing policies shall contain a provision that coverages afforded under the policies shall not be canceled or not renewed until at least thirty (30) days’ prior written notice has been given to the Landlord. Certificates of insurance including required endorsements showing such coverages to be in force shall be filed with Landlord prior to the commencement of any Tenant Work and prior to each renewal. Coverage for completed operations must be maintained for the lesser of ten (10) years and the applicable statue of repose following completion of the Tenant Work, and certificates evidencing this coverage must be provided to Landlord. The minimum A.M. Best’s rating of each insurer shall be A- VII. Landlord and its mortgagees shall be named as an additional insureds under Tenant contractors’ Commercial General Liability, Commercial Automobile Liability and Umbrella Liability Insurance policies as respects liability arising from work or operations performed, or ownership, maintenance or use of autos, by or on behalf of such contractors. Each contractor and its insurers shall provide waivers of subrogation with respect to any claims covered or that should have been covered by valid and collectible insurance, including any deductibles or self-insurance maintained thereunder.  If any contractor’s work involves the handling or removal of asbestos (as determined by Landlord in its sole and absolute discretion), such contractor shall also carry Pollution Legal Liability insurance. Such coverage shall include bodily injury, sickness, disease, death or mental anguish or shock sustained by any person; property damage, including physical injury to or destruction of tangible property (including the resulting loss of use thereof), clean-up costs and the loss of use of tangible property that has not been physically injured or destroyed; and defense costs, charges and expenses incurred in the investigation, adjustment or defense of claims for such damages. Coverage shall apply to both sudden and non-sudden pollution conditions including the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any watercourse or body of water. Claims-made coverage is permitted, provided the policy retroactive date is continuously maintained prior to the Term Commencement Date, and coverage is continuously maintained during all periods in which 

 

B-1-3  Tenant  occupies  the  Premises. Coverage  shall  be  maintained  with  limits  of  not  less  than $1,000,000 per incident with a $2,000,000 policy aggregate. 

 

C-1  EXHIBIT C  ACKNOWLEDGEMENT OF TERM COMMENCEMENT DATE AND TERM EXPIRATION DATE  THIS ACKNOWLEDGEMENT OF TERM COMMENCEMENT DATE AND TERM EXPIRATION DATE is entered into as of [ ], 20[ ], with reference to that certain Lease  (the  “Lease”)  dated  as  of  [ ], 201_, by LA JOLLA PHARMACEUTICAL COMPANY, a California corporation (“Tenant”), in favor of BMR-AXIOM LP, a Delaware limited partnership (“Landlord”). All capitalized terms used herein without definition shall have the meanings ascribed to them in the Lease.  Tenant hereby confirms the following:  1. Tenant accepted possession of the Premises for construction of improvements or the installation of personal or other property on [ ], 20[ ], and for use in accordance with the Permitted Use on [ ], 20[ ]. Tenant first occupied the Premises for the Permitted Use on [ ], 20[   ].  2. The Premises are in good order, condition and repair.  3. The Tenant Improvements are Substantially Complete.  4. All conditions of the Lease to be performed by Landlord as a condition to the full effectiveness of the Lease have been satisfied, and Landlord has fulfilled all of its duties in the nature of inducements offered to Tenant to lease the Premises.  5. In accordance with the provisions of Article 4 of the Lease, the Term Commencement Date is [ ], 20[ ], and, unless the Lease is terminated prior to the Term Expiration Date pursuant to its terms, the Term Expiration Date shall be [ ], 20[   ].  6. The Lease is in full force and effect, and the same represents the entire agreement between Landlord and Tenant concerning the Premises[, except [ ]].  7. Tenant has no existing defenses against the enforcement of the Lease by Landlord, and there exist no offsets or credits against Rent owed or to be owed by Tenant.  8. The obligation to pay Rent is presently in effect and all Rent obligations on the part of Tenant under the Lease commenced to accrue on [ ], 20[ ], with Base Rent payable on the dates and amounts set forth in the chart below:    Dates Approximate Square Feet of Rentable Area  Base Rent per Square Foot of Rentable Area  Monthly Base Rent  Annual Base Rent [   ]/[   ]/[   ]- [   ]/[   ]/[   ] [ ] $[ ] [monthly][OR][annually] [ ] [ ] 

 

C-2  9. The undersigned Tenant has not made any prior assignment, transfer, hypothecation or pledge of the Lease or of the rents thereunder or sublease of the Premises or any portion thereof.  [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

 

C-3  IN  WITNESS  WHEREOF,  Tenant  has  executed  this  Acknowledgment  of  Term Commencement Date and Term Expiration Date as of the date first written above.  TENANT:  LA JOLLA PHARMACEUTICAL COMPANY, a California corporation   By:         Name:    Title:      

 

D-1  EXHIBIT D LANDLORD WORK Pre-Delivery Landlord Work  ● One (1) set of restrooms on each floor of the Building; and ● Work to the Base Building mechanical systems (detailed description below); and ● Electrical work (detailed description below); and ● Egress lighting sufficient for Building core and shell; and ● Refinish the elevator cabs in the Building; and ● Notifier fire alarm system expandable for Tenant Improvements Description of Base Building Mechanical Work Laboratory ● (1) new air-cooled chiller (Capacity = 180 Tons) and chilled water pumps. ● (2) new hot water boilers and pumps. (Capacity=1,999 MBH each) ● Building management system serving centralized HVAC equipment and core building spaces only. Airflow controls and temperature controls within Premises are excluded. ● New galvanized supply air and exhaust air duct risers. ● Centralized laboratory air compressor (40 HP) and vacuum pumps (three at 10 HP each) with main piping risers stubbed to each floor.  Office ● (1) new rooftop VAV package unit, shared between floors (Capacity: 16,000 cfm) ● Building management system serving centralized HVAC equipment and core building spaces only. Airflow controls and temperature controls within Premises are excluded. ● (7) new stand-alone split system fan coils for core support rooms ● New galvanized supply air and exhaust air duct risers.  Electrical Work  ● New 800 Amp main breakers and SDG&E meters to serve each floor.  All electrical distribution downstream of SDG&E meters and automatic transfer switch gear serving Premises is excluded.  Post-Delivery Landlord Work  ● Paint the Exterior walls of the Building ● Site improvements including landscaping, hardscaping, new slurry coat and striping of the parking lot, patio on the northwest side of the Building; and ● Amenities Center 

 

 EXHIBIT E  FORM OF LETTER OF CREDIT  IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER XXX DATE: , 20   BENEFICIARY: BMR-AXIOM LP 17190 BERNARDO CENTER DRIVE SAN DIEGO, CALIFORNIA 92128 ATTN: FINANCE DEPARTMENT  APPLICANT: [INSERT NAME AND ADDRESS]  AMOUNT OF LETTER OF CREDIT: USD XXX (XXX AND 00/100 UNITED STATES DOLLARS)  DATE AND PLACE OF EXPIRATION: [INSERT EXPIRATION DATE] AT THE COUNTERS OF JPMORGAN CHASE BANK, N.A. CHICAGO, ILLINOIS, USA   LADIES AND GENTLEMEN:  WE, JPMORGAN CHASE BANK, N.A., LOCATED AT: 131 SOUTH DEARBORN, 5TH FLOOR, MAIL CODE: IL1-0236, CHICAGO, ILLINOIS, 60603-5506 (THE “ISSUING BANK”), ESTABLISH IN FAVOR OF BMR-AXIOM LP, LOCATED AT: 17190 BERNARDO CENTER DRIVE, SAN DIEGO, CALIFORNIA, 92128, ATTN: FINANCE DEPARTMENT       (THE       “BENEFICIARY”)       OUR       IRREVOCABLE       AND UNCONDITIONAL (SUBJECT TO THE CONDITIONS HEREIN) STANDBY LETTER OF CREDIT NUMBER XXX (THE “L/C”) FOR AN AGGREGATE AMOUNT OF USD XXX (XXX AND 00/100 UNITED STATES DOLLARS), EXPIRING AT 5.00 P.M. (CHICAGO TIME) ON [INSERT EXPIRATION DATE] OR, IF SUCH DAY IS NOT A BUSINESS DAY, THEN THE NEXT SUCCEEDING BUSINESS DAY (SUCH DATE, AS EXTENDED FROM TIME TO TIME, THE “EXPIRATION DATE”). AS USED HEREIN, THE TERM “BUSINESS DAY” MEANS ANY DAY OTHER THAN A SATURDAY, SUNDAY, OR A DAY ON WHICH BANKS IN THE STATE OF ILLINOIS ARE AUTHORIZED OR REQUIRED TO BE CLOSED, AND A DAY ON WHICH PAYMENTS CAN BE EFFECTED ON THE FEDWIRE SYSTEM.     LA JOLLA PHARMACEUTICAL-PREVET-JLM-2016 11-1688-CLEAN COPY 

 

E-2  WE AUTHORIZE THE BENEFICIARY TO DRAW ON US FOR THE ACCOUNT OF [INSERT APPLICANT NAME], LOCATED AT: [INSERT APPLICANT ADDRESS] (THE “ACCOUNT PARTY”), UNDER THE TERMS AND CONDITIONS OF THIS L/C.  FUNDS UNDER THIS L/C ARE AVAILABLE BY PRESENTING THE FOLLOWING DOCUMENTATION (THE “DRAWING DOCUMENTATION”): (A) THE ORIGINAL L/C; AND (B) A SIGHT DRAFT COMPLETED IN THE FORM OF ATTACHMENT 1 TO THIS L/C, WITH BLANKS FILLED IN AND BRACKETED ITEMS PROVIDED AS APPROPRIATE. NO OTHER EVIDENCE OF AUTHORITY, CERTIFICATE, OR DOCUMENTATION IS REQUIRED.  DRAWING DOCUMENTATION MUST BE PRESENTED AT THE ISSUING BANK’S OFFICE AT: 131 SOUTH DEARBORN, 5TH FLOOR, MAIL CODE: IL1-0236, CHICAGO, ILLINOIS, 60603-5506, ATTENTION: STANDBY LETTER OF CREDIT UNIT ON OR BEFORE THE EXPIRATION DATE BY CERTIFIED MAIL, PERSONAL PRESENTATION, COURIER OR MESSENGER SERVICE.  NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, DRAWINGS PRESENTED    BY    TELECOPY    ("FAX")    TO    FAX    NUMBER    312-233-       ,    OR ALTERNATELY  TO  FAX  NUMBER  312-233-   ARE  ACCEPTABLE,  UNDER TELEPHONE PRE-ADVICE TO 312-385- , OR ALTERNATELY TO 1-800-634-1969, PROVIDED THAT SUCH FAX PRESENTATION IS RECEIVED ON OR BEFORE THE EXPIRATION DATE ON THIS L/C IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS L/C, IT BEING UNDERSTOOD THAT ANY SUCH FAX PRESENTATION SHALL BE CONSIDERED THE SOLE OPERATIVE INSTRUMENT OF DRAWING. IN THE EVENT OF PRESENTATION BY FAX, THE ORIGINAL DOCUMENTS SHOULD NOT ALSO BE PRESENTED.  WE ENGAGE WITH YOU THAT DOCUMENTS PRESENTED UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS L/C WILL BE DULY HONORED ON PRESENTATION IF PRESENTED AT THE OFFICES OF THE ISSUING BANK LOCATED AT: 131 SOUTH DEARBORN, 5TH FLOOR, MAIL CODE IL1-0236, CHICAGO, ILLINOIS 60603-5506, ATTENTION: STANDBY LETTER OF CREDIT UNIT, ON OR BEFORE THE EXPIRATION DATE OF THIS L/C. ALL PAYMENTS DUE HEREUNDER SHALL BE MADE BY WIRE TRANSFER TO THE BENEFICIARY’S ACCOUNT PER THEIR INSTRUCTIONS. ALL DOCUMENTS PRESENTED MUST BE IN ENGLISH.  IF BENEFICIARY PRESENTS PROPER DRAWING DOCUMENTATION TO US ON OR BEFORE THE EXPIRATION DATE, THEN WE SHALL PAY UNDER THIS L/C AT OR BEFORE THE FOLLOWING TIME (THE “PAYMENT DEADLINE”): (A) IF PRESENTMENT IS MADE AT OR BEFORE 12.00 NOON (CHICAGO TIME) ON ANY BUSINESS DAY, THEN PAYMENT SHALL BE MADE ON THE 3RD  (THIRD) BUSINESS DAY; AND (B) IF PRESENTMENT IS MADE AFTER 12.00 NOON (CHICAGO TIME) ON ANY BUSINESS DAY, THEN PAYMENT SHALL BE MADE ON THE 4TH (FOURTH) BUSINESS DAY. IF WE DETERMINE THAT DRAWING DOCUMENTATION DOES NOT CONFIRM TO THE TERMS AND CONDITIONS OF THE L/C, WE SHALL SEND THE 

 

E-3  BENEFICIARY NOTICE IN WRITING, THAT THE DEMAND FOR PAYMENT WAS NOT EFFECTED IN ACCORDANCE WITH THE TERMS OF THE L/C, STATING THE REASONS THEREFOR AND THAT WE SHALL RETURN THE DRAWING DOCUMENTATION TO THE BENEFICIARY. UPON BEING NOTIFIED THAT THE DEMAND FOR PAYMENT WAS NOT EFFECTED IN CONFORMITY WITH THIS L/C, THE BENEFICIARY MAY ATTEMPT TO CORRECT ANY SUCH NON-CONFORMING DEMAND FOR PAYMENT TO THE EXTENT THAT THE BENEFICIARY IS ENTITLED TO DO SO AND WITHIN THE THEN CURRENT EXPIRATION DATE OF THIS L/C.  PARTIAL DRAWINGS ARE PERMITTED. EXCEPT WHEN THE AMOUNT OF THE DRAWING FULLY UTILIZES THIS LETTER OF CREDIT, WE UNDERTAKE TO RETURN THE ORIGINAL L/C TO YOU WITH THE AMOUNT OF THE PAYMENT ENDORSED THEREON.  IT IS A CONDITION OF THIS L/C THAT THE EXPIRATION DATE SHALL BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR 1 (ONE) YEAR FROM THE EXPIRATION DATE HEREOF OR ANY FUTURE EXPIRATION DATE UNLESS AT LEAST 90 (NINETY) DAYS PRIOR TO SUCH EXPIRATION DATE WE SEND NOTICE TO YOU BY CERTIFIED MAIL OR HAND DELIVERED COURIER, AT THE ADDRESS STATED ABOVE, THAT WE ELECT NOT TO EXTEND THIS L/C FOR ANY SUCH ADDITIONAL PERIOD. HOWEVER IN NO EVENT SHALL THIS L/C BE AUTOMATICALLY EXTENDED BEYOND [INSERT FINAL EXPIRATION DATE] (THE “FINAL EXPIRATION DATE”).  THIS L/C IS TRANSFERABLE, BUT ONLY IN ITS ENTIRETY, AND MAY BE SUCCESSIVELY TRANSFERRED. TRANSFER OF THIS L/C SHALL BE EFFECTED BY US UPON YOUR SUBMISSION OF THIS ORIGINAL LETTER OF CREDIT, INCLUDING ALL AMENDMENTS, IF ANY, ACCOMPANIED BY OUR TRANSFER REQUEST FORM DULY COMPLETED AND SIGNED, WITH THE SIGNATURE THEREON AUTHENTICATED BY YOUR BANK. CHARGES AND FEES RELATED TO THE TRANSFER OF THIS L/C WILL BE FOR THE ACCOUNT OF THE APPLICANT. IF YOU WISH TO TRANSFER THE L/C, PLEASE CONTACT US FOR THE FORM WHICH WE SHALL PROVIDE TO YOU UPON YOUR REQUEST. IN ANY EVENT, THIS L/C MAY NOT BE TRANSFERRED TO ANY PERSON OR ENTITY LISTED IN OR OTHERWISE SUBJECT TO, ANY SANCTION OR EMBARGO UNDER ANY APPLICABLE RESTRICTIONS.  ALL AMENDMENTS UNDER THIS LETTER OF CREDIT ARE SUBJECT TO THE BENEFICIARY'S AGREEMENT.  THIS L/C IS GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND, EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, TO THE INTERNATIONAL STANDBY PRACTICES, ICC PUBLICATION NO. 590 (THE “ISP98”), AND IN THE EVENT OF ANY CONFLICT, THE LAWS OF THE STATE OF NEW YORK WILL CONTROL, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 

 

E-4  PLEASE ADDRESS ALL CORRESPONDENCE REGARDING THIS L/C TO THE ATTENTION OF: JPMORGAN CHASE BANK, N.A, 131 SOUTH DEARBORN, 5TH FLOOR, MAIL CODE IL1-0236, CHICAGO, ILLINOIS 60603-5506, ATTENTION: STANDBY LETTER OF CREDIT UNIT, INCLUDING THE L/C NUMBER MENTIONED ABOVE. FOR TELEPHONE ASSISTANCE, PLEASE CONTACT THE STANDBY CLIENT SERVICE UNIT AT 1-800-634-1969, OR 1-813-432-1210, AND HAVE THIS L/C NUMBER AVAILABLE.   VERY TRULY YOURS, JPMORGAN CHASE BANK, N.A. [ISSUER SIGNATURE] 

 

E-2-1  ATTACHMENT 1  TO IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER XXX FORM OF SIGHT DRAFT [BENEFICIARY LETTERHEAD]  TO: JPMORGAN CHASE BANK, N.A. 131 SOUTH DEARBORN 5TH FLOOR, MAIL CODE: IL1-0236 CHICAGO, ILLINOIS, 60603-5506 ATTENTION: STANDBY LETTER OF CREDIT UNIT   SIGHT DRAFT   AT SIGHT, PAY TO THE ORDER OF  ,      THE      SUM      OF     UNITED STATES DOLLARS ($ ). DRAWN UNDER JPMORGAN CHASE BANK,     N.A.     IRREVOCABLE     STANDBY     LETTER     OF     CREDIT     NO.     DATED .  [JPMORGAN CHASE BANK, N.A. IS HEREBY DIRECTED TO PAY THE PROCEEDS OF THIS SIGHT DRAFT SOLELY TO THE FOLLOWING ACCOUNT:   .]  [NAME   AND   SIGNATURE   BLOCK,   WITH   AUTHORIZED   SIGNATURE   OF   THE BENEFICIARY (SIGNED AS SUCH)]   DATE:    

 

 EXHIBIT F  RULES AND REGULATIONS  NOTHING IN THESE RULES AND REGULATIONS (“RULES AND REGULATIONS”) SHALL SUPPLANT ANY PROVISION OF THE LEASE. IN THE EVENT OF A CONFLICT OR INCONSISTENCY BETWEEN THESE RULES AND REGULATIONS AND THE LEASE, THE LEASE SHALL PREVAIL.  1. No Tenant Party shall encumber or obstruct the common entrances, lobbies, elevators, sidewalks and stairways of the Project or use them for any purposes other than ingress or egress to and from the Building(s) or the Project.  2. Except as specifically provided in the Lease, no sign, placard, picture, advertisement, name or notice shall be installed or displayed on any part of the outside of the Building(s) without Landlord’s prior written consent. Landlord shall have the right to remove, at Tenant’s sole cost and expense and without notice, any sign installed or displayed in violation of this rule.  3. If Landlord objects in writing to any curtains, blinds, shades, screens, hanging plants or other similar objects attached to or used in connection with any window or door of the Premises or placed on any windowsill, and (a) such window, door or windowsill is visible from the exterior of the Premises and (b) such curtain, blind, shade, screen, hanging plant or other object is not included in plans approved by Landlord, then Tenant shall promptly remove such curtains, blinds, shades, screens, hanging plants or other similar objects at its sole cost and expense.  4. Tenant shall not place a load upon any floor of the Premises that exceeds the load per square foot that (a) such floor was designed to carry or (b) is allowed by Applicable Laws. Fixtures and equipment that cause noises or vibrations that may be transmitted to the structure of the Building(s) to such a degree as to be objectionable to other tenants shall be placed and maintained by Tenant, at Tenant’s sole cost and expense, on vibration eliminators or other devices sufficient to eliminate such noises and vibrations to levels reasonably acceptable to Landlord and the affected tenants of the Project.  5. Tenant shall not install any radio, television or other antennae; cell or other communications equipment; or other devices on the roof or exterior walls of the Premises except in accordance with the Lease. Tenant shall not interfere with radio, television or other digital or electronic communications at the Project or elsewhere.  6. Canvassing, peddling, soliciting and distributing handbills or any other written material within, on or around the Project (other than within the Premises) are prohibited. Tenant shall cooperate with Landlord to prevent such activities by any Tenant Party.  7. Tenant shall store all of its trash, garbage and Hazardous Materials in receptacles within its Premises or in receptacles designated by Landlord outside of the Premises. Tenant shall not place in any such receptacle any material that cannot be disposed of in the ordinary and customary manner of trash, garbage and Hazardous Materials disposal. Any Hazardous Materials transported through Common Area shall be held in secondary containment devices.  F-1 

 

F-2  Tenant shall be responsible, at its sole cost and expense, for Tenant’s removal of its trash, garbage and Hazardous Materials. Tenant is encouraged to participate in the waste removal and recycling program in place at the Project.  8. The Premises shall not be used for lodging or for any improper, immoral or objectionable purpose.  9. Tenant shall not, without Landlord’s prior written consent, use the name of the Project, if any, in connection with or in promoting or advertising Tenant’s business except as Tenant’s address.  10. Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any Governmental Authority.  11. Tenant assumes any and all responsibility for protecting the Premises from theft, robbery and pilferage, which responsibility includes keeping doors locked and other means of entry to the Premises closed.  12. Tenant shall not modify any locks to the Premises without Landlord’s prior written consent, which consent Landlord shall not unreasonably withhold, condition or delay. Tenant shall furnish Landlord with copies of keys, pass cards or similar devices for locks to  the Premises.  13. Tenant shall cooperate and participate in all reasonable security programs affecting the Premises.  14. Tenant shall not permit any animals in the Project, other than for service animals or for use in laboratory experiments.  15. The water and wash closets and other plumbing fixtures shall not be used for  any purposes other than those for which they were constructed, and no sweepings, rubbish, rags or other substances shall be deposited therein.  16. Discharge of industrial sewage shall only be permitted if Tenant, at its sole expense, first obtains all necessary permits and licenses therefor from all applicable Governmental Authorities.  17. Smoking is prohibited inside the Building, except in designated outdoor areas of the Project (if any).  18. The Project’s hours of operation are currently 24 hours a day seven days a week.  19. Tenant shall comply with all orders, requirements and conditions now or hereafter imposed by Applicable Laws or Landlord (“Waste Regulations”) regarding the collection, sorting, separation and recycling of waste products, garbage, refuse and trash generated by Tenant (collectively, “Waste Products”), including (without limitation) the separation of Waste Products into receptacles reasonably approved by Landlord and the removal of such receptacles in accordance with any collection schedules prescribed by Waste Regulations. 

 

F-3  20. Tenant, at Tenant’s sole cost and expense, shall cause the Premises to be exterminated on a monthly basis to Landlord’s reasonable satisfaction and shall cause all portions of the Premises used for the storage, preparation, service or consumption of food or beverages to be cleaned daily in a manner reasonably satisfactory to Landlord, and to be treated against infestation by insects, rodents and other vermin and pests whenever there is evidence of any infestation. Tenant shall not permit any person to enter the Premises or the Project for the purpose of providing such extermination services, unless such persons have been approved by Landlord. If requested by Landlord, Tenant shall, at Tenant’s sole cost and expense, store any refuse generated in the Premises by the consumption of food or beverages in a cold box or similar facility.  21. If Tenant desires to use any portion of the Common Area for a Tenant-related event, Tenant must notify Landlord in writing at least thirty (30) days prior to such event on the form attached as Attachment 1 to this Exhibit, which use shall be subject to Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed. Notwithstanding anything in this Lease or the completed and executed Attachment to the contrary, Tenant shall be solely responsible for setting up and taking down any equipment or other materials required for the event, and shall promptly pick up any litter and report any property damage to Landlord related to the event. Any use of the Common Area pursuant to this Section shall be subject to the provisions of Article 28 of the Lease.  Landlord may waive any one or more of these Rules and Regulations for the benefit of Tenant or any other tenant, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of Tenant or any other tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the Project, including Tenant. These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms covenants, agreements and conditions of the Lease. Landlord reserves the right to make such other and reasonable additional rules and regulations as, in its judgment, may from time to time be needed for safety and security, the care and cleanliness of the Project, or the preservation of good order therein; provided, however, that Tenant shall not be obligated to adhere to such additional rules or regulations until Landlord has provided Tenant with written notice thereof. Tenant agrees to abide by these Rules and Regulations and any such additional rules and regulations issued or adopted by Landlord. Tenant shall be responsible for the observance of these Rules and Regulations by all Tenant Parties. 

 

F-1-1  ATTACHMENT 1 TO EXHIBIT F REQUEST FOR USE OF COMMON AREA REQUEST FOR USE OF COMMON AREA  Date of Request:     Landlord/Owner:      Tenant/Requestor:     Property Location:      Event Description:           Proposed Plan for Security & Cleaning:        Date of Event:     Hours of Event: (to include set-up and take down):    Location at Property (see attached map):  Number of Attendees:     Open to the Public? [ ] YES [ ] NO  Food and/or Beverages? [ ] YES [ ] NO  If YES:  ● Will food be prepared on site?   [ ] YES   [ ] NO  ● Please describe:     ● Will alcohol be served? [ ] YES [ ] NO  ● Please describe:     ● Will attendees be charged for alcohol?  [ ] YES [ ] NO 

 

F-1-2  ● Is alcohol license or permit required? [ ] YES [ ] NO  ● Does caterer have alcohol license or permit: [ ] YES [ ] NO [ ] N/A Other Amenities (tent, booths, band, food trucks, bounce house, etc.):             Other Event Details or Special Circumstances:                  The undersigned certifies that the foregoing is true, accurate and complete and he/she is duly authorized to sign and submit this request on behalf of the Tenant/Requestor named above.  LA JOLLA PHARMACEUTICAL COMPANY, a California corporation  By:     Name:     Title:     Date:     

 

G-1  EXHIBIT G  FORM OF ADDITIONAL TI ALLOWANCE ACCEPTANCE LETTER   [TENANT LETTERHEAD]   BMR–Axiom LP 17190 Bernardo Center Drive San Diego, California  92128 Attn:  Vice President, Real Estate Legal  [Date]   Re: Additional TI Allowance  To Whom It May Concern:  This letter concerns that certain Lease dated as of [ ], 20[   ] (the "Lease"), between BMR–Axiom LP, a Delaware limited partnership ("Landlord") and La Jolla Pharmaceutical Company, a California corporation ("Tenant").  Capitalized terms not otherwise defined herein shall have the meanings given them in the Lease.  Tenant hereby notifies Landlord that it wishes to exercise its right to utilize the Additional TI Allowance pursuant to Article 4 of the Lease.   [ ]. If you have any questions, please do not hesitate to call [ ] at ([ ]) [ ]-  Sincerely,    [Name] [Title of Authorized Signatory]   cc:  Karen Sztraicher John Bonanno Kevin Simonsen 

 

H-1  EXHIBIT H TENANT’S PROPERTY 

 

N-1  EXHIBIT I  FORM OF ESTOPPEL CERTIFICATE  To: BMR-Axiom LP 17190 Bernardo Center Drive San Diego, California 92128 Attention: Legal Department  BioMed Realty, L.P. 17190 Bernardo Center Drive San Diego, California  92128  Re: 4550  Towne  Centre  Court  (the  “Premises”)  at  Towne  Centre  Court  in  San  Diego, California (the “Property”)  The undersigned tenant (“Tenant”) hereby certifies to you as follows:  1. Tenant is a tenant at the Property under a lease (the “Lease”) for the Premises dated as of [ ], 20[ ]. The Lease has not been cancelled, modified, assigned, extended or amended [except as follows:  [ ]], and there are no other agreements, written or oral, affecting or relating to Tenant’s lease of the Premises or any other space at the Property. The lease term expires on [ ], 20[   ].  2. Tenant took possession of the Premises, currently consisting of [  ] square feet of Rentable Area, on [ ], 20[    ], and commenced to pay rent on [ ], 20[ ]. Tenant has full possession of the Premises, has not assigned the Lease or sublet any part of the Premises, and does not hold the Premises under an assignment or sublease[, except as follows:  [ ]].  3. All base rent, rent escalations and additional rent under the Lease have been paid through [ ], 20[   ].  There is no prepaid rent[, except $[ ]][, and the amount of security deposit is $[ ] [in cash][OR][in the form of a letter of credit]]. Tenant currently has no right to any future rent abatement under the Lease.  4. Base rent is currently payable in the amount of $[ ] per month.  5. Tenant is currently paying estimated payments of additional rent of $[ ] per month on account of real estate taxes, insurance, management fees and Common Area maintenance expenses.  6. All work to be performed for Tenant under the Lease has been performed as required under the Lease and has been accepted by Tenant[, except [ ]], and all allowances to be paid to Tenant, including allowances for tenant improvements, moving expenses or other items, have been paid.  7. The Lease is in full force and effect, free from Default, and Tenant has no claims against the landlord or offsets or defenses against rent, and there are no disputes with the landlord. 

 

F-2  Tenant has received no notice of prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents payable thereunder[, except [ ]].  8. [Tenant has the following expansion rights or options for leasing additional space at the Property: [ ].][OR][Tenant has no rights or options to purchase the Property.]  9. To Tenant’s knowledge, no hazardous wastes have been generated, treated, stored or disposed of by or on behalf of Tenant in, on or around the Premises or the Project in violation of any environmental laws.  10. The undersigned has executed this Estoppel Certificate with the knowledge and understanding that [INSERT NAME OF LANDLORD, PURCHASER OR LENDER, AS APPROPRIATE] or its assignee is [acquiring the Property/making a loan secured by the Property] in reliance on this certificate and that the undersigned shall be bound by this certificate. The statements contained herein may be relied upon by [INSERT NAME OF PURCHASER OR LENDER, AS APPROPRIATE], [LANDLORD], BioMed Realty, L.P., BRE Edison Parent L.P., and any [other] mortgagee of the Property and their respective successors and assigns.  Any capitalized terms not defined herein shall have the respective meanings given in the Lease. Dated this [ ] day of [ ], 20[   ]. LA JOLLA PHARMACEUTICAL COMPANY, a California corporation  By:         Name:    Title:      

 

J-1-  EXHIBIT J  INTENTIONALLY OMITTED 

 

K-1-  EXHIBIT K  ROOFTOP LICENSE Landlord hereby grants to Tenant a license (“Rooftop License”), which Rooftop License shall be at no additional cost of expense to Tenant, to use portions of the rooftop of the Building identified by Landlord from time to time as “Rooftop Installation Area” (the “Rooftop Installation Area”) solely to operate, maintain, repair and replace rooftop antennae, mechanical equipment, communications antennas and other equipment installed by Tenant in the Rooftop Installation Area in accordance with this Article (“Tenant’s Rooftop Equipment”). Tenant’s Rooftop Equipment shall be only for Tenant’s use of the Premises for the Permitted Use. Notwithstanding anything to the contrary, Tenant’s rights under this Exhibit K shall be subject and subordinate to the rights granted to Global in the Rooftop Lease. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Lease to which this Exhibit K is attached.  Tenant shall install Tenant’s Rooftop Equipment at its sole cost and expense, at such times and in such manner as Landlord may reasonably designate, and in accordance with this Exhibit and the applicable provisions of the Lease regarding Alterations. Tenant’s Rooftop Equipment and the installation thereof shall be subject to Landlord’s prior written approval, which approval shall not be unreasonably withheld. Among other reasons, Landlord may withhold approval if the installation or operation of Tenant’s Rooftop Equipment could reasonably be expected to damage the structural integrity of the Building or to transmit vibrations or noise or cause other adverse effects beyond the Premises to an extent not customary in first class laboratory buildings, unless Tenant implements measures that are acceptable to Landlord in its reasonable discretion to avoid any such damage or transmission.  Tenant shall comply with any roof or roof-related warranties. Tenant shall obtain a letter from Landlord’s roofing contractor within thirty (30) days after completion of any Tenant work on the rooftop stating that such work did not affect any such warranties. Tenant, at its sole cost and expense, shall inspect the Rooftop Installation Area at least annually, and correct any loose bolts, fittings or other appurtenances and repair any damage to the roof caused by the installation or operation of Tenant’s Rooftop Equipment. Tenant shall not permit the installation, maintenance or operation of Tenant’s Rooftop Equipment to violate any Applicable Laws or constitute a nuisance. Tenant shall pay Landlord within thirty (30) days after demand (a) all applicable taxes, charges, fees or impositions imposed on Landlord by governmental authorities as the result of Tenant’s use of the Rooftop Installation Areas in excess of those for which Landlord would otherwise be responsible for the use or installation of Tenant’s Rooftop Equipment and (b) the amount of any increase in Landlord’s insurance premiums as a result of the installation of Tenant’s Rooftop Equipment. Upon Tenant’s written request to Landlord, Landlord shall use commercially reasonable efforts to cause other tenants to remedy any interference in the operation of Tenant’s Rooftop Equipment caused by any such tenants’ equipment  installed  after  the  applicable  piece  of  Tenant’s  Rooftop  Equipment;  provided, 

 

K-2-  however, that Landlord shall not be required to request that such tenants waive their rights under their respective leases.  If Tenant’s Equipment (a) causes physical damage to the structural integrity of the Building, (b) interferes with any telecommunications, mechanical or other systems located at or near or servicing the Building or the Project that were installed prior to the installation of Tenant’s Rooftop Equipment, (c) interferes with any other service provided to other tenants in the Building or the Project by rooftop or penthouse installations that were installed prior to the installation of Tenant’s Rooftop Equipment or (d) interferes with any other tenants’ business, in each case in excess of that permissible under Federal Communications Commission regulations, then Tenant shall cooperate with Landlord to determine the source of the damage or interference and promptly repair such damage and eliminate such interference, in each case at Tenant’s sole cost and expense, within ten (10) business days after receipt of notice (which notice may be oral; provided that Landlord also delivers to Tenant written notice of such damage or interference within twenty-four (24) hours after providing oral notice) of such damage or interference, or within a reasonable time if such cannot be accomplished within ten (10) business days so long as Tenant diligently and continuously prosecutes such cure to completion.  Landlord reserves the right to cause Tenant to relocate Tenant’s Rooftop Equipment to comparably functional space on the roof or in the penthouse of the Building by giving Tenant prior written notice thereof. Landlord agrees to pay the reasonable costs thereof. Tenant shall arrange for the relocation of Tenant’s Rooftop Equipment within sixty (60) days after receipt of Landlord’s notification of such relocation. In the event Tenant fails to arrange for relocation within such sixty (60)-day period, Landlord shall have the right to arrange for the relocation of Tenant’s Rooftop Equipment in a manner that does not unnecessarily interrupt or interfere with Tenant’s use of the Premises for the Permitted Use.  Notwithstanding anything to the contrary in this Exhibit, Tenant shall, prior to commencing any work on the rooftop of the Building, give Landlord at least thirty days (30) days’ prior written notice. 

 

K-1-  EXHIBIT L  TI ALLOWANCE AND COMMISSION FEE SCHEDULE  Subsection 3.2.2(z)(i) (TI Allowance):  $13,696,320.  ● Base TI Allowance: $12,451,200.  ● Additional TI Allowance:  $1,245,120.  Subsection 3.2.2(z)(ii) (Commission Fee):  $1,786,760.58. 

 

 EXHIBIT M  FORM SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT    RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:  Eric F. Allendorf, Esq. Paul Hastings LLP 200 Park Avenue New York, New York 10166         (Space Above For Recorder’s Use)   SUBORDINATION AGREEMENT, ACKNOWLEDGMENT OF LEASE ASSIGNMENT, ATTORNMENT AND NON-DISTURBANCE AGREEMENT (Lease to Security Instrument)  NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.  THIS SUBORDINATION AGREEMENT, ACKNOWLEDGMENT OF LEASE ASSIGNMENT, ATTORNMENT AND NON-DISTURBANCE AGREEMENT (“Agreement”) is made this day of , 2016 by and among BMR-Axiom LP, a Delaware limited partnership, owner of the real property hereinafter described (“Mortgagor”), La Jolla Pharmaceutical Company, a California corporation (“Tenant”), AB Commercial Real Estate Debt – B2 S.Á.R.L., a Luxembourg private company with limited liability, as administrative agent for certain lenders party to the Loan Agreement (defined below), and their respective successors and assigns (“Lender”). R E C I T A L S  1. Pursuant to the terms and provisions of the unrecorded lease dated December , 2016 (“Lease”), Tenant holds a leasehold estate in and to a portion of the property described in the Lease (which property, together with all improvements now or hereafter located on the property, is defined as the “Property”, as more particularly described on Exhibit A attached hereto).  2. Mortgagor has executed that certain Loan Agreement, dated as of the date hereof, by and among Mortgagor, Lender and certain other parties thereto (as the same may be amended, restated and/or replaced from time to time, the “Loan Agreement”) and that certain Security Instrument (as defined in the Loan Agreement) encumbering the Property and otherwise securing, among other things, those certain Notes (as defined in the Loan Agreement) in favor of the Lender (“Loan”). The Security Instrument is being recorded in the real property records where the Property is located.  3. As a condition to Lender making the Loan secured by the Security Instrument, Lender requires that the Security Instrument be unconditionally and at all times remain a lien on the Property, prior and superior to 

 

 all the rights of Tenant under the Lease and that the Tenant specifically and unconditionally subordinate the Lease to the lien of the Security Instrument.  4. Mortgagor and Tenant have agreed to the subordination, attornment and other agreements herein in favor of Lender.  NOW THEREFORE, for valuable consideration and to induce Lender to make the Loan, Mortgagor and Tenant hereby agree for the benefit of Lender as follows: 1. SUBORDINATION.  Mortgagor and Tenant hereby agree that:  a) Prior Lien. The Security Instrument securing the Note in favor of Lender and any modifications, renewals or extensions thereof (including, without limitation, any modifications, renewals or extensions with respect to any additional advances made subject to the Security Instrument), shall unconditionally be and at all times remain a lien on the Property prior and superior to the Lease (including, without limitation, any amendments, modifications, renewals or extensions thereof);  b) Whole Agreement. This Agreement shall be the whole agreement and only agreement with regard to the subordination of the Lease to the lien of the Security Instrument and shall supersede and cancel, but only insofar as would affect the priority between the Security Instrument and the Lease, any prior agreements as to such subordination, including, without limitation, those provisions, if any, contained in the Lease which provide for the subordination of the Lease to a deed or deeds of trust or to a mortgage or mortgages.  AND FURTHER, Tenant individually declares, agrees and acknowledges for the benefit of Lender that:  c) Use of Proceeds. Lender, in making disbursements pursuant to the Note, the Security Instrument or any loan agreements with respect to the Property, is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat this agreement to subordinate in whole or in part; and  d) Subordination. Tenant intentionally and unconditionally waives, relinquishes and subordinates all of Tenant’s right, title and interest in and to the Property to the lien of the Security Instrument and understands that in reliance upon, and in consideration of, this subordination, specific loans and advances are being and will be made by Lender and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination.  2. ASSIGNMENT.   Tenant acknowledges and consents to the assignment of the Lease by Mortgagor in favor of Lender.  3. ADDITIONAL AGREEMENTS.  Tenant covenants and agrees that, during all such times as the Loan is outstanding:  a) Notice of Default. Tenant will notify Lender in writing concurrently with any notice given to Mortgagor of any default by Mortgagor under the Lease, and Tenant agrees that Lender has the right (but not the obligation) to cure any breach or default specified in such notice within the time periods set forth below and Tenant will not declare a default of the Lease, as to Lender, or terminate the Lease if Lender cures such default within thirty (30) days from and after the expiration of the time period provided in the Lease for the cure thereof by Mortgagor; provided, however, that if such default cannot with diligence be cured by Lender within such thirty (30) day period, the commencement of action by Lender within such thirty (30) day period to remedy the same shall be deemed sufficient so long as Lender pursues such cure with diligence.   Further, 

 

 Tenant shall not terminate the Lease on the basis of any default by Landlord which is incurable by Lender (such as, for example, the bankruptcy of Landlord or breach of any representation by Landlord), provided Lender is proceeding with due diligence to commence an action to appoint a receiver or to obtain title to the Property by foreclosure, deed in lieu of foreclosure, or otherwise (collectively, “Foreclosure”). Tenant hereby agrees that no action taken by Lender to enforce any rights under the Security Instrument or related security documents, by reason of any default thereunder (including, without limitation, the appointment of a receiver, any Foreclosure or any demand for rent under any assignment of rents or leases) shall give rise to any right of Tenant to terminate the Lease, nor shall such action invalidate or constitute a breach of any of the terms of the Lease;  b) No Advance Rents. Other than the payment of a security deposit as required under the Lease, Tenant will make no payments or prepayments of rent more than one (1) month in advance of the time when the same become due under the Lease; and  c) Assignment of Rents. Upon receipt by Tenant of written notice directing the payment of rents by Tenant to Lender, Tenant shall comply with such direction to pay such rents (including, without limitation, any termination fees or other similar payments, including, without limitation,  the Clinical Trial Termination Fee (as defined in the Lease) and the Acquisition Termination Fee (as defined in the Lease)) to Lender, and Mortgagor hereby acknowledges that Tenant shall be entitled to rely upon any such direction received from Lender.  d) Notice with Respect to Hazardous Materials.  Tenant will deliver to Lender any notice or other deliverable given to Mortgagor pursuant to the terms and provisions of Section 21.2 of the Lease concurrently with the delivery of the same to Mortgagor.  4. ATTORNMENT. In the event of a foreclosure under the Security Instrument, Tenant agrees for the benefit of Lender (including any transferee of Lender or any transferee of Mortgagor’s title in and to the Property by Lender or the Lender’s exercise of the remedy of sale by foreclosure under the Security Instrument (in each case, a “Successor Owner”) as follows:  a) Payment of Rent. Tenant shall pay to Lender all rental payments required to be made by Tenant pursuant to the terms of the Lease for the duration of the term of the Lease;  b) Continuation of Performance. Tenant shall be bound to Lender in accordance with all of the provisions of the Lease for the balance of the term thereof, and Tenant hereby attorns to Lender as its landlord, such attornment to be effective and self-operative without the execution of any further instrument immediately upon Lender succeeding to Mortgagor’s interest in the Lease and giving written notice thereof to Tenant; and  c) No Offset. Lender shall not be liable, nor subject to any offsets or defenses which Tenant may have by reason of any act or omission of Mortgagor under the Lease, nor for the return of any sums which Tenant may have paid to Mortgagor under the Lease as and for security deposits, advance rentals or otherwise, except to the extent that such sums are actually delivered by Mortgagor to Lender.  d) Landlord Liability. Nothing in this Agreement shall impose upon Lender any liability for the obligations of Landlord under the Lease unless and until Lender takes title to the Property; provided, however, the foregoing shall not limit Successor Owner’s obligations under the Lease to correct any conditions of a continuing nature that (i) existed as of the date of Successor Owner shall become owner of the Property and (ii) violate Successor Owner’s obligations as landlord under the Lease; provided that Successor Owner shall have received written notice of such omissions, conditions or violations from Tenant and has had a reasonable opportunity to cure the same. Anything herein or in the Lease to the contrary notwithstanding, in the event that a Successor Owner shall acquire title to the Property or the portion thereof containing the Premises, 

 

 Successor Owner shall have no obligation, nor incur any liability, beyond Successor Owner’s then interest, if any, in the Property, and Tenant shall look exclusively to such interest, if any, of Successor Owner in the Property for the payment and discharge of any obligations imposed upon Successor Owner hereunder or under the Lease, and Successor Owner is hereby released or relieved of any other liability hereunder and under the Lease. Tenant agrees that, with respect to any money judgment which may be obtained or secured by Tenant against Successor Owner, Tenant shall look solely to the estate or interest owned by Successor Owner in the Property, and Tenant will not collect or attempt to collect any such judgment out of any other  assets  of Successor Owner. Except as specifically provided in this Agreement, Lender shall not, by virtue of this Agreement, the Security Instrument or any other instrument to which Lender may be party, be or become subject to any liability or obligation to Tenant under the Lease or otherwise.  5. NOTICE OF SECURITY INSTRUMENT. To the extent that the Lease shall entitle Tenant to notice of the existence of any Security Instrument and the identity of any mortgagee or any ground lessor, this Agreement shall constitute such notice to Tenant with respect to the Security Instrument and Lender.  6. NON-DISTURBANCE. In the event of a foreclosure under the Security Instrument, so long as there shall then exist no Default (as such term is defined in the Lease) on the part of Tenant under the Lease, Lender agrees for itself and its successors and assigns that the leasehold interest of Tenant under the Lease shall not be extinguished or terminated by reason of such foreclosure, but rather the Lease shall continue in full force and effect and Lender shall recognize and accept Tenant as tenant under the Lease subject to the terms and provisions of the Lease except as modified by this Agreement.  7. MISCELLANEOUS.  a) NOTICES. All notices, demands, or other communications under this Agreement and the other Loan Documents shall be in writing and shall be delivered to the appropriate party at the address set forth below (subject to change from time to time by written notice to all other parties to this Agreement).  All notices, demands or other communications shall be considered as properly given if delivered personally or sent by first class United States Postal Service mail, postage prepaid, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid, except that notice of Default may be sent by certified mail, return receipt requested, charges prepaid. Notices so sent shall be effective three (3) days after mailing, if mailed by first class mail, and otherwise upon delivery or refusal; provided, however, that non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication. For purposes of notice, the address of the parties shall be:  Mortgagor: BMR-Axiom LP c/o   BioMed Realty, L.P.     17190 Bernardo Center Drive San Diego, California 92128 Attention: Real Estate Legal Department With copies to: Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, New York 10017 Attention: Krista Miniutti, Esq. Tenant: La Jolla Pharmaceutical Company 10182 Telesis Court, Suite 600 San Diego, California 92121 Attention: Legal Department With copies to: Gibson, Dunn & Crutcher LLP 

 

   333 South Grand Avenue Los Angeles, California 90071 Attention: Mark S. Pecheck Lender: AB Commercial Real Estate Debt – B2 S.Á.R.L., c/o AllianceBernstein, L.P. 1345 Avenue of the Americas New York, New York 10105 With copies to: Paul Hasting LLP 200 Park Avenue New York, New York 10166 Attention: Eric F. Allendorf, Esq.   Any party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving notice to the other parties in the manner set forth hereinabove. b) REMEDIES CUMULATIVE. All rights of Lender herein to collect rents on behalf of Mortgagor under the Lease are cumulative and shall be in addition to any and all other rights and remedies provided by law and by other agreements between Lender and Mortgagor or others.  c) HEIRS, SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided under the terms and conditions herein, the terms of this Agreement shall bind and inure to the benefit of the heirs, executors, administrators, nominees, successors and assigns of the parties hereto.  d) HEADINGS. All article, section or other headings appearing in this Agreement are for convenience of reference only and shall be disregarded in construing this Agreement.  e) COUNTERPARTS. To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single document. It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.  f) EXHIBITS, SCHEDULES AND RIDERS. All exhibits, schedules, riders and other items attached hereto are hereby incorporated into this Agreement for all purposes.  g) WAIVER OF TRIAL BY JURY. EACH OF TENANT, LENDER AND LANDLORD HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.  h) ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties and no modifications shall be binding upon any party hereto unless set forth in a document duly executed by or on behalf of such party.  [No further text on this page] 

 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.  NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A  PROVISION  WHICH  ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR PURPOSES OTHER THAN IMPROVEMENT OF THE LAND.  IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT HERETO.  “TENANT” LA JOLLA PHARMACEUTICAL COMPANY, a California corporation       By: Name: Title:   [ACKNOWLEDGMENT ON THE FOLLOWING PAGE] 

 

   ACKNOWLEDGMENT  [PROPER FORM OF ACKNOWLEDGMENT TO BE INSERTED]  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] 

 

   “MORTGAGOR” BMR-Axiom LP a Delaware limited partnership   By: Name: Title:   [ACKNOWLEDGMENT ON THE FOLLOWING PAGE] 

 

   ACKNOWLEDGMENT  [PROPER FORM OF ACKNOWLEDGMENT TO BE INSERTED]  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] 

 

   “LENDER” AB Commercial Real Estate Debt – B2 S.Á.R.L., a Luxembourg private company with limited liability, as administrative agent     By: Name: Title:   [ACKNOWLEDGMENT ON THE FOLLOWING PAGE] 

 

 ACKNOWLEDGMENT  [PROPER FORM OF ACKNOWLEDGMENT TO BE INSERTED]  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]                                                     L0E1G0A3L9_6US-1_E6#9142-117658098494.3-Active.19224474.4 

 

 EXHIBIT A - DESCRIPTION OF PROPERTY  [to be inserted]                                                     K-1-Exhibit

Exhibit 10.3
	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

Execution Version

“***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
FIRST AMENDED AND RESTATED
GLOBAL MASTER SERVICES AGREEMENT

by and between
DUN & BRADSTREET, INC.
and
ENSONO, LP

January 1, 2017

	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

TABLE OF CONTENTS
	
					
	1.
	BACKGROUND AND OBJECTIVES
	1
	

	 
	 
	 
	 

	 
	1.1
	Background.
	1
	

	 
	1.2
	Objectives.
	1
	

	 
	1.3
	Construction.
	2
	

	 
	 
	 
	 

	2.
	DEFINITIONS
	2
	

	 
	 
	 
	 

	 
	2.1
	Certain Definitions.
	2
	

	 
	2.2
	Inclusion of Affiliates in Definition of D&B and Ensono; Meaning of “party”.
	14
	

	 
	2.3
	Rules of Interpretation.    
	15
	

	 
	 
	 
	 

	3.
	SERVICES
	16
	

	 
	 
	 
	 

	 
	3.1
	Provision of Services.    
	16
	

	 
	3.2
	Intentionally Omitted.
	17
	

	 
	3.3
	Intentionally Omitted.
	17
	

	 
	3.4
	Permitted Users of the Services.
	17
	

	 
	3.5
	SOWs.
	18
	

	 
	 
	 
	 

	4.
	TRANSITION AND TRANSFORMATION
	19
	

	 
	 
	 
	 

	 
	4.1
	Context.
	19
	

	 
	4.2
	Major Milestones.
	20
	

	 
	4.3
	Transition and Transformation Plans.
	20
	

	 
	4.4
	Conduct of the Transition and Transformation.
	21
	

	 
	4.5
	Additional Terms.
	21
	

	 
	 
	 
	 

	5.
	TERM
	22
	

	 
	 
	 
	 

	 
	5.1
	Term
	22
	

	 
	5.2
	Extension
	22
	

	 
	 
	 
	 

	6.
	ENSONO PERSONNEL
	22
	

	 
	 
	 
	 

	 
	6.1
	Key Ensono Positions
	22
	

	 
	6.2
	Qualifications, Retention and Replacement of Ensono Personnel
	23
	

	 
	6.3
	Fair Employment Practices
	25
	

	 
	 
	 
	 

	7.
	RESPONSIBILITY FOR RESOURCES
	26
	

	 
	 
	 
	 

	 
	7.1
	Generally.
	26
	

	 
	7.2
	Financial Responsibility for Equipment.
	26
	

	 
	7.3
	Equipment Access and Operational and Administrative Responsibility.
	27
	

	 
	7.4
	Financial Responsibility for Software.
	27
	

	 
	7.5
	Required Consents.
	28
	

	 
	 
	 
	 

	8.
	INTELLECTUAL PROPERTY RIGHTS AND RESTRICTIONS
	28
	

	 
	 
	 
	 

	 
	8.1
	D&B Software & Materials.
	28
	

	 
	8.2
	Ensono Software and Materials.
	29
	

	 
	8.3
	Third Party Software.
	30
	

	 
	8.4
	Rights in Newly Developed Materials.
	31
	

	 
	8.5
	Residual Knowledge.
	33
	

-i-

	
					
	 
	8.6
	Ensono's Patents.
	33
	

	 
	8.7
	Execution of Documents to Perfect D&B's Intellectual Property Rights.
	34
	

	 
	8.8
	Waiver of Moral Rights.
	34
	

	 
	8.9
	Export.
	34
	

	 
	8.10
	Certain Manuals/Procedures.
	34
	

	 
	 
	 
	 

	9.
	FACILITIES
	35
	

	 
	 
	 
	 

	 
	9.1
	D&B Obligations.
	35
	

	 
	9.2
	Ensono Obligations.
	35
	

	 
	9.3
	Ensono Facilities.
	35
	

	 
	 
	 
	 

	10.
	PERFORMANCE STANDARDS
	36
	

	 
	 
	 
	 

	 
	10.1
	General.
	36
	

	 
	10.2
	Failure to Perform.
	36
	

	 
	10.3
	User Satisfaction.
	38
	

	 
	10.4
	Periodic Reviews.
	38
	

	 
	10.5
	Measurement and Monitoring Tools.
	38
	

	 
	 
	 
	 

	11.
	PROJECT AND CONTRACT MANAGEMENT
	38
	

	 
	 
	 
	 

	 
	11.1
	Steering Committee.
	38
	

	 
	11.2
	Reports and Meetings
	39
	

	 
	11.3
	Procedures Manual
	39
	

	 
	11.4
	Change Control
	40
	

	 
	11.5
	Use of Subcontractors and Other Support
	42
	

	 
	11.6
	Technology Plan
	43
	

	 
	11.7
	Quality Assurance and Improvement Programs
	45
	

	 
	11.8
	Coordination of Additional Marketing to D&B
	45
	

	 
	11.9
	Cooperation With D&B Third Parties
	45
	

	 
	11.10
	Public Cloud Services
	45
	

	 
	11.11
	***
	46
	

	 
	 
	 
	 

	12.
	AUDITS; RECORDS RETENTION
	46
	

	 
	 
	 
	 

	 
	12.1
	Audit Rights
	46
	

	 
	12.2
	SSAE 16 Audit
	48
	

	 
	12.3
	Sarbanes Oxley Compliance
	49
	

	 
	12.4
	Audit Follow-up
	49
	

	 
	12.5
	Records Retention
	50
	

	 
	12.6
	Overcharges
	51
	

	 
	 
	 
	 

	13.
	D&B RESPONSIBILITIES
	51
	

	 
	 
	 
	 

	 
	13.1
	Responsibilities
	51
	

	 
	13.2
	Savings Clause
	52
	

	 
	 
	 
	 

	14.
	CHARGES
	52
	

	 
	 
	 
	 

	 
	14.1
	General
	52
	

	 
	14.2
	Annual Minimum Charges
	53
	

	 
	14.3
	Commitment Cap.
	54
	

	 
	14.4
	[Intentionally Omitted]
	55
	

	 
	14.5
	Termination for Convenience Charges
	55
	

-ii-

	
					
	 
	14.6
	12 Month Rule Charges
	55
	

	 
	14.7
	Coordination with the IMSA
	56
	

	 
	14.8
	Pass-Through Expenses
	56
	

	 
	14.9
	Incidental Expenses
	57
	

	 
	14.10
	Taxes
	57
	

	 
	14.11
	New Services
	58
	

	 
	14.12
	Benchmarks
	59
	

	 
	 
	 
	 

	15.
	INVOICING AND PAYMENT
	62
	

	 
	 
	 
	 

	 
	15.1
	Invoicing
	62
	

	 
	15.2
	Payment Due
	63
	

	 
	15.3
	Accountability
	63
	

	 
	15.4
	Proration
	63
	

	 
	15.5
	Refundable Items
	63
	

	 
	15.6
	***
	64
	

	 
	15.7
	Disputed Charges
	64
	

	 
	 
	 
	 

	16.
	SAFEGUARDING OF DATA; CONFIDNETIALITY
	64
	

	 
	 
	 
	 

	 
	16.1
	D&B Information
	64
	

	 
	16.2
	Safeguarding D&B Data
	65
	

	 
	16.3
	GLB & PCI Compliance
	68
	

	 
	16.4
	Confidentiality
	70
	

	 
	16.5
	Corporate Information Security Risk Controls
	73
	

	 
	16.6
	Penetration Testing
	74
	

	 
	16.7
	IP Addresses
	74
	

	 
	16.8
	Equitable Relief
	74
	

	 
	16.9
	European Union Data Protection/Privacy Shield
	74
	

	 
	16.10
	General Data Protection Regulation
	75
	

	 
	 
	 
	 

	17.
	REPRESENTATIONS AND WARRANTIES
	75
	

	 
	 
	 
	 

	 
	17.1
	Work Standards
	75
	

	 
	17.2
	Non-Infringement
	75
	

	 
	17.3
	Authorization and Other Contracts
	76
	

	 
	17.4
	Inducements
	76
	

	 
	17.5
	Viruses
	76
	

	 
	17.6
	Disabling Code
	77
	

	 
	17.7
	FCRA
	77
	

	 
	17.8
	Deliverables
	77
	

	 
	17.9
	Supported Technology
	77
	

	 
	17.10
	Disclaimers
	78
	

	 
	 
	 
	 

	18.
	INSURANCE
	78
	

	 
	 
	 
	 

	 
	18.1
	Insurance Coverage
	78
	

	 
	18.2
	Insurance Provisions
	81
	

	 
	 
	 
	 

	19.
	INDEMNITIES
	82
	

	 
	 
	 
	 

	 
	19.1
	Indemnity by Ensono
	82
	

	 
	19.2
	Indemnity by D&B
	83
	

	 
	19.3
	Additional Indemnities
	84
	

	 
	19.4
	Infringement Where Ensono is Indemnitor
	84
	

-iii-

	
					
	 
	19.5
	Infringement Where D&B is Indemnitor
	85
	

	 
	19.6
	Indemnification Procedures
	85
	

	 
	19.7
	Subrogation
	86
	

	 
	 
	 
	 

	20.
	LIABILITY
	87
	

	 
	 
	 
	 

	 
	20.1
	General Intent
	87
	

	 
	20.2
	Liability Restrictions
	87
	

	 
	20.3
	Force Majeure
	89
	

	 
	20.4
	No Exemptions
	90
	

	 
	 
	 
	 

	21.
	ENSONO FINANCIAL REQUIREMENTS
	90
	

	 
	 
	 
	 

	 
	21.1
	Pre-eminence of these provisions over any other provision of the Agreement; Time of the Essence
	90
	

	 
	21.2
	Ensono Reporting Obligations regarding Breaches of, and Notices Under, Loan Agreements
	90
	

	 
	21.3
	Meetings of the Parties Following a Loan Agreement Default Notice
	91
	

	 
	21.4
	D&B Right To Terminate
	91
	

	 
	21.5
	Step-In Rights
	92
	

	 
	21.6
	“Red” Events
	92
	

	 
	21.7
	Step In Rights
	93
	

	 
	 
	 
	 

	22.
	DISPUTE RESOLUTION
	93
	

	 
	 
	 
	 

	 
	22.1
	Informal Dispute Resolution
	93
	

	 
	22.2
	Litigation
	94
	

	 
	22.3
	Continued Performance
	95
	

	 
	22.4
	Injunctive Relief; Specific Performance
	95
	

	 
	22.5
	Governing Law
	95
	

	 
	22.6
	Limitation of Actions
	96
	

	 
	 
	 
	 

	23.
	TERMINATION
	96
	

	 
	 
	 
	 

	 
	23.1
	Agreement Termination for Cause
	96
	

	 
	23.2
	SOW Termination for Cause by D&B
	97
	

	 
	23.3
	SOW Termination for Cause by Ensono
	98
	

	 
	23.4
	Termination For Convenience
	98
	

	 
	23.5
	Termination Upon Change of Control of Ensono
	99
	

	 
	23.6
	Termination Due To Force Majeure Event
	100
	

	 
	23.7
	Termination Due To Ensono’s Financial Inability To Perform
	100
	

	 
	23.8
	Extension of Termination/Expiration Effective Date
	101
	

	 
	23.9
	No Damages From Termination; No Other Termination for Convenience Charges
	101
	

	 
	23.10
	Termination/Expiration Assistance
	101
	

	 
	23.11
	Equitable Remedies
	103
	

	 
	23.12
	Effect of Termination or Expiration of this Agreement on SOWs Hereunder
	104
	

	 
	23.13
	Termination of the IMSA
	104
	

	 
	23.14
	Transfer Regulations
	104
	

	 
	 
	 
	 

	24.
	COMPLIANCE WITH LAWS
	104
	

	 
	 
	 
	 

	 
	24.1
	Compliance with Laws and Regulations Generally
	104
	

-iv-

	
					
	 
	24.2
	FCRA, GLB Act, and Similar Laws
	105
	

	 
	24.3
	Equal Employment Opportunity/Affirmative Action
	105
	

	 
	24.4
	Occupational Safety And Health Act
	105
	

	 
	24.5
	Hazardous Products or Components
	106
	

	 
	24.6
	Liens
	106
	

	 
	24.7
	Modifications to the Services to Comply with Laws; Cost Allocation
	106
	

	 
	 
	 
	 

	25.
	PROVISIONS REGARDING TRANSITION FROM GMSA
	107
	

	 
	 
	 
	 

	 
	25.1
	Cancellation of the GMSA
	107
	

	 
	25.2
	Continuation of SOWs
	107
	

	 
	25.3
	Mutual Release of Claims
	107
	

	 
	 
	 
	 

	26.
	GENERAL
	108
	

	 
	 
	 
	 

	 
	26.1
	Binding Nature and Assignment
	108
	

	 
	26.2
	No Collateral Documents
	108
	

	 
	26.3
	Mutually Negotiated
	109
	

	 
	26.4
	Notices
	109
	

	 
	26.5
	Counterparts
	110
	

	 
	26.6
	Headings
	111
	

	 
	26.7
	Relationship of Parties
	111
	

	 
	26.8
	Non-Exclusivity
	111
	

	 
	26.9
	Severability
	111
	

	 
	26.10
	Consents and Approval
	111
	

	 
	26.11
	Waiver of Default; Cumulative Remedies
	112
	

	 
	26.12
	Survival
	112
	

	 
	26.13
	Public Disclosures
	112
	

	 
	26.14
	Service Marks
	113
	

	 
	26.15
	Third Party Beneficiaries.
	113
	

	 
	26.16
	Nonsolicitation of Employees
	113
	

	 
	26.17
	Covenant of Good Faith and Fair Dealing
	113
	

	 
	26.18
	Entire Agreement; Amendment
	113
	

-v-

SCHEDULES

	
		
	Schedule A:*
	Services

	Schedule B:*
	Service Levels

	Schedule C:*
	Charges

	Schedule D:**
	Key Ensono Positions

	Schedule E:*
	Approved Subcontractors

	Schedule F:
	Batch Systems Subject To 2 Day Rule in Section 10.2

	Schedule G-1:
	D&B Competitors as of the Effective Date

	Schedule G-2:
	Ensono Competitors as of the Effective Date

	Schedule H:**
	List of Software

	Schedule I:
	D&B Information Security & Data Protection Standards

	Schedule J:
	Auditor Nondisclosure Agreement

	Schedule K:
	Ensono Employment/Background Screening Policies as of the Effective Date

	Schedule L:
	Form of SOW

	Schedule M:
	AWS Terms

	Schedule N:
	Financial Thresholds

	Schedule O:
	Transfer Regulations

	Schedule P
	***

	Schedule Q
	Ensono use of D&B Facilities

	Schedule R
	Governance

	Schedule S
	Form of Ensono Certificate of Insurance

	Schedule T
	Twelve Month Rule elements

	Schedule U
	Data Transfer Agreement

-vi-

* This Schedule is SOW specific and is not attached to this Agreement.
** This Schedule is in this Agreement and can be varied or supplemented by a similarly designated Schedule to an SOW.

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FIRST AMENDED AND RESTATED
GLOBAL MASTER SERVICES AGREEMENT

This FIRST AMENDED AND RESTATED GLOBAL MASTER SERVICES AGREEMENT (this “Agreement” or the “Global Master Services Agreement”), is made and effective as of January 1, 2017 (the “Effective Date”) but executed by the parties on January 3, 2017, by and between DUN & BRADSTREET, INC. (“D&B”), a Delaware corporation having offices at 103 JFK Parkway, Short Hills, New Jersey 07078 and ENSONO, LP (“Ensono”), a Delaware limited partnership having offices at 3333 Finley Road, Downers Grove, Illinois 60515.
		
	1.
	BACKGROUND AND OBJECTIVES

		
	1.1
	Background.

(a)D&B and Acxiom Corporation entered into a Global Master Services Agreement (the “Original GMSA”) on July 27, 2006, which (as amended) was assigned to, and assumed by Ensono on July 21, 2015, with D&B’s consent, in connection with Ensono’s purchase of certain portions of Acxiom’s information technology business;
(b)The parties desire to amend and restate the Original GMSA as provided herein;
(c)DBIS (an Affiliate of D&B in Ireland) and a predecessor to Ensono UK (an Affiliate of Ensono in the United Kingdom) are also parties to a DBIS Master Services Agreement (the “Original IMSA”) and effective simultaneously with the execution and delivery of this Agreement are executing and delivering an Amended and Restated DBIS Master Services Agreement (the “IMSA”); 
(d)By way of background to the parties’ businesses:
(i)D&B is a leading provider of information and data about businesses;
(ii)Ensono is a provider of managed information technology services; and
(iii)D&B’s business is the provision of information to its customers and D&B is almost entirely reliant upon data processing services to collect, organize, maintain and deliver information to its customers.  D&B has a number of business lines, including Credit, Sales & Marketing, Supply Chain, and Compliance.  
		
	1.2 
	Objectives.

D&B requires a relationship with Ensono: (i) that is responsive to changes, requests, and incidents in the environment; (ii) such that Ensono has personnel available and approachable for strategy, help, advice and discussion as 

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desired by D&B within the scope defined by this Agreement and applicable SOWs hereto; and (iii) that facilitates cooperation, teamwork and clear governance structure between the parties and their personnel.
1.3    Construction.
The provisions of this Article 1 are intended to be a general introduction to this Agreement and are not intended to expand the scope of the parties’ obligations under this Agreement or to alter the plain meaning of the terms and conditions of this Agreement.  However, to the extent the terms and conditions of this Agreement do not address a particular circumstance or are otherwise unclear or ambiguous, such terms and conditions are to be interpreted and construed so as to give full effect to the provisions in this Article 1.
		
	2.
	DEFINITIONS

2.1    Certain Definitions.
The following terms will have the meanings set forth below with respect to this Agreement and each SOW hereunder:
(a)“12 Month Rule Charges” shall have the meaning provided in Section 14.6.
(b)“AAA” shall have the meaning provided in Section 22.1(b).
(c)“Accounting Firm” shall have the meaning provided in Section 14.12(d).
(d)“Additional Resource Units” shall have the meaning provided in Section 14.6.
(e)“Adjusted Charges” shall have the meaning provided in Section 14.2(b).
(f)“Affiliate” shall mean, with respect to any entity, any other entity Controlling, Controlled by, or under common Control with, such entity at the time in question.  At D&B’s option an entity affiliated with D&B (which at the time of divestiture was receiving a portion of the Services) shall be deemed to remain an Affiliate of D&B for up to (at D&B’s discretion) twenty-four (24) months after the date it ceases to Control, be Controlled by, or be under common Control with, D&B; and the purchaser of all or substantially all the assets of any line of business of D&B or its Affiliates (which at the time of sale was receiving a portion of the Services) shall be deemed to be an Affiliate of D&B for twenty-four (24) months after the date of purchase, but only with respect to the business(es) acquired.  With regard to Ensono, Affiliate does not include any entity Controlling Ensono or any entity under common Control with Ensono that is not directly or indirectly Controlled by Ensono Holdings LLC (Series 1, 2, or 3), which are each a Delaware limited liability company.  

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(g)“Agreement” shall mean this First Amended and Restated Global Master Services Agreement, including its schedules, exhibits, SOWs, and appendices, as the same may be amended by the parties from time to time in accordance with Section 26.18.  The text of this Agreement includes references to “this Agreement or an SOW hereunder” (and other similar references); the fact that such references appear herein shall not be interpreted as meaning that a reference to this “Agreement” does not include SOWs hereunder (as the term “Agreement” does include all documents hereunder, as provided in the first sentence of this definition).
(h)“Amount at Risk” shall have the meaning provided in Section 10.2(c).
(i)“Annual Minimum Charges” shall have the meaning provided in Section 14.2.
(j)“Annual Minimum Charges Shortfall” shall have the meaning provided in Section 14.2.
(k)“Applicable Laws and Regulations” means:
(i)any applicable law, statute, regulation, ordinance or subordinate legislation in force from time to time to which a party is subject;
(ii)the common law as applicable to the parties from time to time;
(iii)any binding court order, judgment or decree; and any applicable directive, policy, rule or order that is binding on a party and that is made or given by any government, an agency thereof, or any regulatory body;
of any country, the European Union, or other national, federal, commonwealth, state, provincial or local jurisdiction and of any exchange or association (including the New York Stock Exchange, the National Association of Securities Dealers and the Direct Marketing Association) whose regulations are binding on either party pursuant to a self-regulating mechanism approved by a governmental entity.
(l)“Applications Software” or “Applications” shall mean those programs and programming (including the supporting documentation, media, on-line help facilities and tutorials) that perform specific user related data processing and telecommunications tasks in connection with the Services, including all application development tools and all database management software.  The designation of an item of Software as Application Software shall not change any allocation of financial responsibility provided with respect to that Software elsewhere.  
(m)“Approved Locations” shall have the meaning provided in Section 9.3(b).
(n)“Approved Subcontractors” shall mean those subcontractors of Ensono:

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(i)identified in the applicable SOW;
(ii)whose approval by D&B is not required in accordance with Section 11.5; 
(iii)and any other subcontractor(s) approved by D&B in accordance with Section 11.5;
unless and until (in each case of (i), (ii) and (iii) approval of such subcontractor is rescinded by D&B in accordance with Section 11.5(b).
(o)“At Risk Charges” shall have the meaning provided in Section 10.2(d).
(p)“AWS” shall have the meaning provided in Section 11.10(b).
(q)“AWS Terms” shall mean the Amazon Web Services terms attached as Schedule M. 
(r)“Benchmarker” shall have the meaning provided in Section 14.12(a).
(s)“Business Day” shall mean every day Monday through Friday other than those holidays (not to exceed fifteen (15) per calendar year) when D&B’s corporate headquarters is not scheduled to be open for business.  References in this Agreement to “days” that do not specifically refer to Business Days are references to calendar days and, unless otherwise provided, a period of more than seven (7) days that expires on a day other than a Business Day shall be automatically extended to the next following Business Day.
(t)“Certain Manuals/Procedures” shall have the meaning provided in Section 8.10.
(u)“Change Control Procedure” shall have the meaning provided in Section 11.4.
(v)“Change in Control of Ensono” shall have the meaning provided in Section 23.5(a).
(w)“Charges” shall mean the amounts payable to Ensono for Services as set forth in the SOWs, but without deduction for any Service Level Credits.  The term “Charges” does not include (i) Pass-Through Expenses; (ii) Out-Of-Pocket Expenses, or (iii) taxes.  
(x)“Chronic or Extreme Service Level Failures” shall have the meaning provided in Section 10.2(b).
(y)“Commercially Available” with respect to Software and tools shall mean Software or a tool: (i) that is available to the general public under standard

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 terms and conditions, (ii) for which the applicable vendor provides ongoing maintenance and updates, and (iii) that is available at list prices offered to the public.
(z)“Commercially Reasonable Efforts” shall mean taking such steps and performing in such a manner as a well-managed business would undertake where such business was acting in a determined, prudent and reasonable manner to achieve a particular desired result for its own benefit.
(aa)“Commitment Cap” shall have the meaning provided in Section 14.3.
(bb)    “Confidential Information” shall have the meaning provided in Section 16.4(a).
(cc)    “Contract Year” shall mean each twelve (12) month period beginning with the Effective Date of the relevant SOW, provided however that if the first Contract Year is not a calendar year then the first Contract Year shall end on December 31 of the year in which its Effective Date occurs.  In such event and unless otherwise provided monetary amounts applicable to such Contract Year (other than Termination for Convenience Charges) shall be appropriately pro-rated.
(dd)    “Control” and its derivatives mean with regard to any entity the legal, beneficial or equitable ownership, directly or indirectly, of:
(i)fifty percent (50%) or more of the capital stock (or other ownership interest if not a stock corporation) of such entity ordinarily having voting rights;
(ii)(A) twenty percent (20%) or more of the capital stock (or other ownership interest if not a stock corporation) and (B) either (1) a greater percentage than any other juridical person or (2) management control in fact or by agreement; or with respect to an entity not domiciled in the United States, the greater of twenty percent (20%) of the capital stock (or other ownership interest if not a stock corporation) and the maximum percentage allowed for a United States domiciliary to directly or indirectly own in accordance with local law for an entity engaged in such entity’s business.
(ee)    “Credit Card Data” shall have the meaning provided in Section 16.3(f).
(ff)    “Critical Service Levels” shall have the meaning provided in Schedule B to each SOW.
(gg)    “D&B” shall have the meaning provided in the preamble to this Agreement.  
(hh)    “D&B Competitor” shall mean those entities listed in Schedule G-1, and their Affiliates, as such Schedule may be updated by D&B on an annual basis; provided that: (i) without Ensono’s consent, the number of D&B Competitors shall not

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 exceed the number initially specified in Schedule G-1 as of the Effective Date, (ii) with respect to any entity on (or added to) the list in Schedule G-1, if Ensono or any Affiliate has an existing relationship with such entity prior to such entity being added to the list, then any restrictions herein applicable to D&B Competitors shall not be effective with respect to such entity, and (iii) D&B shall certify that it has a good faith belief that the new entity is a direct competitor of D&B or its Affiliates.  If a new entity to be added to the list by D&B is an information technology services company, D&B shall first consult with Ensono regarding the same, ***.  Notwithstanding the foregoing, in no event shall the following entities or their Affiliates be added to Schedule G-1 or be otherwise considered D&B Competitors: ***.
(ii)    “D&B Confidential Information” shall have the meaning provided in Section 16.4(b).
(jj)    “D&B Contract Executive” shall have the meaning provided in Section 13.1(a).
(kk)    “D&B Customer Information” shall have the meaning provided in Section 16.3(a).
(ll)    “D&B Data” shall mean all information, whether or not Confidential Information, entered in or otherwise transferred to Software or Equipment by or on behalf of D&B and information derived from such information, including as stored in or processed through the Equipment or Software.  “D&B Data” also includes (i) all data and information from D&B (or its Affiliates, customers, etc.) that are processed by, or otherwise are provided to, Ensono (including all D-U-N-S® Numbers); and (ii) all data and information that D&B generates through use of the Services.  This includes Personal Information and Personally Identifiable Information.
(mm)    “D&B Information” shall mean all information, including D&B Data and D&B Customer Information, in any form, furnished or made available directly or indirectly to Ensono by D&B or otherwise obtained by Ensono from D&B.  This includes Personal Information and Personally Identifiable Information.
(nn)    “D&B Materials” shall mean Materials owned by D&B or its Affiliates.
(oo)    “D&B Process” shall have the meaning provided in Section 14.12.
(pp)    “D&B SOW Executive” shall have the meaning provided in Section 13.1(a).
(qq)    “DBIS” shall mean D&B’s Affiliate, D & B Business Information Solutions UC, an Irish company (Registration Number 471445) with registered offices at 5th Floor, Carmanhall Road, Sandyford Business Park, Dublin D18 Y3X2, Ireland. 
(rr)    “Deliverable” shall mean (i) any Materials, work product, mappings, software, concepts, works, information, data, computer programs, processes, methods, audio media, visual media, inventions, and other ideas and

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 materials, and any modifications, enhancements, or derivative works thereof, and (ii) which are created, developed, invented, prepared, reduced to practice, or discovered by Ensono, solely or together with D&B, an Ensono Affiliate, and/or (to the extent permitted herein) a subcontractor, pursuant to this Agreement (and/or any SOW hereunder).
(ss)    “Developed Ensono Materials” shall have the meaning provided in Section 8.4(b).
(tt)    “Developed D&B Materials” shall have the meaning provided in Section 8.4(a).
(uu)    “Dispute Date” shall have the meaning provided in Section 22.1(a)(i).
(vv)    “Distinct Entity” shall have the meaning provided in Section 23.5(a)(i).
(ww)    “Effective Date” shall have the meaning provided in the Preamble.
(xx)    “Embedded Ensono Material” shall have the meaning provided in Section 8.4(f).
(yy)    “End Users” shall mean users of the Services.  
(zz)    “Ensono” shall have the meaning provided in the preamble to this Agreement.
(aaa)    “Ensono A/R File” shall have the meaning provided in Section Error! Reference source not found..
(bbb)    “Ensono Competitor” shall mean those entities listed in Schedule G-2, and their Affiliates, as such Schedule may be updated by Ensono on an annual basis; provided that: (i) without D&B’s consent, the number of Ensono Competitors shall not exceed the number initially specified in Schedule G-2 as of the Effective Date, and (ii) with respect to any entity on (or added to) the list in Schedule G-2, if D&B has an existing relationship with such entity, prior to such entity being added to the list, then any restrictions herein applicable to Ensono Competitors shall not be effective with respect to such entity.
(ccc)    “Ensono Confidential Information” shall have the meaning provided in Section 16.4(c).
(ddd)    “Ensono Delivery Director” shall have the meaning provided in Section 6.1(a).
(eee)    “Ensono Materials” shall mean Materials owned by Ensono or its Affiliates.

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(fff)    “Ensono Personnel” shall mean employees of Ensono and its Approved Subcontractors assigned to perform the Services pursuant to this Agreement (including SOWs hereunder).
(ggg)    “Ensono Process” shall have the meaning provided in Section 14.12.
(hhh)    “Ensono Software” shall mean the Software that is owned or distributed by Ensono or its Affiliates, together with any modifications, upgrades, extensions or enhancements (i.e., derivative works) of such Software (other than any D&B Confidential Information). 
(iii)    “Ensono UK” shall mean Ensono’s Affiliate, Ensono Limited, an English company (Registration Number 3276974) with limited liability having its principal place of business at One London Road, Staines, Middlesex, TW18 4EX England.  
(jjj)    “Equipment” shall mean the computer and telecommunications equipment (without regard to which entity owns or leases such equipment) used by Ensono and its Approved Subcontractors to provide the Services.  Equipment includes the following:
(i)    computer equipment, including associated attachments, features, accessories, peripheral devices, front end devices, and other computer equipment;
(ii)    telecommunications equipment, including private branch exchanges, multiplexors, modems, CSUs/DSUs, hubs, bridges, routers, switches and other telecommunications equipment; and related services (e.g., maintenance and support services, upgrades, subscription services) provided by third parties (e.g., manufacturer and lessor) in the same or related agreement covering the provision of such Equipment.
(kkk)    “FCRA” shall mean the Fair Credit Reporting Act of 1970, as amended, 15 U.S.C.  § 1681.
(lll)    ***.
(mmm)    “Force Majeure Event” shall have the meaning provided in Section 20.3(a).
(nnn)    “Former Affiliate” shall mean the entities who are deemed to be Affiliates pursuant to the second sentence of the definition of “Affiliate”.
(ooo)    “GLB Act” shall mean the Gramm-Leach-Bliley Act, 15 USC §6801 et.  seq., and the implementing regulations and regulatory interpretations thereto, as amended from time to time.  References to the GLB Act shall not be deemed to imply that D&B is a financial institution subject to the GLB Act.

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(ppp)    “Global Master Services Agreement” (or “GMSA”) shall have the same meaning as “Agreement” in Section 2.1(g).
(qqq)    “GS&P” shall have the meaning provided in Section 3.5(a).
(rrr)    “IMSA” shall have the meaning provided in Section 1.1(c).
(sss)    “Imputed Substitute Services Charges” shall have the meaning provided in Section 14.2.
(ttt)    “Initial Term” shall have the meaning provided in Section 5.1.
(uuu)    “Intellectual Property Rights” shall mean, on a worldwide basis, any and all:
(i)rights associated with works of authorship and literary property, including copyrights, moral rights of an author of a copyrightable work (including any right to be identified as the author of the work or to object to derogatory treatment of the work), and mask-work rights;
(ii)database rights and design rights;
(iii)trademarks, service marks, logos, trade dress, trade names, whether or not registered, and the goodwill associated therewith;
(iv)rights relating to know-how or trade secrets, including ideas, concepts, methods, techniques, inventions (whether or not developed or reduced to practice);
(v)patents, designs, algorithms and other industrial property rights;
(vi)rights in domain names, universal resource locator addresses, telephone numbers (including toll free numbers), and similar identifiers;
(vii)other intellectual and industrial property rights of every kind and nature, however designated, whether arising by operation of law, contract, license or otherwise; and registrations, initial applications (including intent to use applications), renewals, extensions, continuations, divisions, or reissues thereof now or hereafter in force (including any rights in any of the foregoing).
(vvv)    “Key Ensono Positions” shall have the meaning provided in Section 6.1(a).
(www)    “Knowledge Individuals” shall have the meaning provided in Section 25.3.
(xxx)    “Loan Agreement” shall have the meaning provided in Section 21.2(a).
(yyy)    “Loan Agreement Default Notice” shall have the meaning provided in Section 21.2(a).

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(zzz)    “Losses” shall mean all losses, liabilities, damages and claims, and all related costs and expenses (including reasonable legal fees and disbursements and costs of investigation, litigation, settlement, judgment, interest and penalties).
(aaaa)    “Major Milestone” shall have the meaning provided in Section 4.2(a).
(bbbb)    “Majority-Owned Affiliate” shall mean an Affiliate whose Control is measured at fifty (50) percent or greater.
(cccc)    “Managed Public Cloud Services” shall mean the Ensono Services of managing Public Cloud Services, as such Ensono Services are described in Exhibit A-9.
(dddd)    “Materials” shall mean, collectively, Software, expressions of literary works, or other works of authorship which are reduced to tangible form, specifications, design documents and analyses, studies, software programs and programming, program listings, programming tools, configurations, integration methods, interfaces, documentation, implementation and change management plans, business models, business rules, business logic, work and process flows, system architecture plans, web site design flow charts, reports, drawings, inventions, and similar work product (all of which are reduced to tangible (including electronic) form).
(eeee)    “Monthly Performance Report” shall have the meaning provided in Schedule B to this Agreement.
(ffff)    “New Ensono Software” shall have the meaning provided in Section 8.2(b)(i).
(gggg)    “New Services” shall have the meaning provided in Section 14.11.
(hhhh)    “New Third Party Software” shall have the meaning provided in Section 8.3(b)(i).
(iiii)    “Non-Commercially Available” with respect to Software and tools shall mean Software or a tool that is not Commercially Available.
(jjjj)    “Notice of Election” shall have the meaning provided in Section 19.6(a).
(kkkk)    “Original IMSA” shall have the meaning provided in Section 1.1(c).
(llll)    “Out-of-Pocket Expenses” shall mean reasonable, demonstrable and actual out-of-pocket expenses incurred by Ensono for equipment, materials, supplies or services provided to or for D&B or its Affiliates as identified in this

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 Agreement, but not including Ensono’s overhead costs (or allocations thereof), administrative expenses or other mark-ups.  Out-of-Pocket Expenses shall be calculated at Ensono’s actual incremental expense and shall be net of all rebates and allowances received by Ensono or its Affiliates.  Where Ensono incurs an Out-of-Pocket Expense from an Affiliate of Ensono, D&B’s approval (which may be arbitrarily withheld) shall be obtained and the amount recognized shall be no greater than would have been paid to such Affiliate in an arm’s length transaction between unaffiliated companies at fair market value.
(mmmm)“PCI DSS” shall have the meaning provided in Section 16.3(f)(i).
(nnnn)    “Pass-Through Expenses” shall have the meaning provided in Section 14.8(a).
(oooo)    “Patriot Act” shall mean United States Public Law 107-56 (October 26, 2001).
(pppp)    “Performance Standards” shall mean, individually and collectively, the quantitative and qualitative performance standards and commitments for the Services contained in this Agreement and any SOW hereunder, including Service Levels.
(qqqq)    “Personally Identifiable Information” or “PII” shall have the meaning provided in Section 16.1(c).
(rrrr)    “Personal Information” shall mean any information relating to an identified or identifiable natural person.
(ssss)    “Procedures Manual” shall mean the standards and procedures manual described in Section 11.3.
(tttt)    “Project” shall have the meaning provided in Section 3.5(f).
(uuuu)    “Project Management Process” shall mean the process of managing Projects described in Section 18.9 of Schedule A. 
(vvvv)    “Project Plan” shall have the meaning provided in the Project Management Process.
(wwww)    “Public Cloud Services” means the computing services provided by unaffiliated third parties (such as AWS) that are described in industry parlance as “cloud services”, offering variable on-demand computing and storage. 
(xxxx)    “Red Event” shall have the meaning provided in Section 21.6(b).
(yyyy)    “Renewal Term” shall have the meaning provided in Section 5.2.

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(zzzz)    “Required Consents” shall mean such consents as may be required or desirable for the assignment to Ensono, or the grant to Ensono of rights of use, of resources otherwise provided for in this Agreement.
(aaaaa)    “Required Registrations” shall have the meaning provided in Section 6.3.
(bbbbb)    “Resource Units” shall mean the unit of chargeable resource utilization for particular resource categories and/or Services, as provided in SOWs hereunder.
(ccccc)    “Retained Responsibilities” shall have the meaning provided in Section 13.1.
(ddddd)    “SSAE 16” shall have the meaning provided in Section 12.2(a).
(eeeee)    “Services” shall have the meaning provided in Section 3.1(a).
(fffff)    “Service Level Credits” shall have the meaning provided in Schedule B.
(ggggg)    “Service Levels” shall have the meaning provided in Section 10.1.
(hhhhh)    “Software” shall (unless a more specific reference is provided) mean Applications Software and Systems Software.
(iiiii)    “SOW” refers to a specific document or documents prepared by the parties on or after the Effective Date, in order for D&B to receive Services from Ensono pursuant to this Agreement.  Each SOW will be subject to the terms and conditions of this Agreement.
(jjjjj)    “SOW Effective Date” shall mean the effective date of an applicable SOW.
(kkkkk)    “SOW #9” shall mean the SOW entitled “SOW #9” executed simultaneously with the execution and delivery of this Agreement.
(lllll)    “SOW No. I-9” shall mean an SOW entitled SOW No. I-9 that DBIS and Ensono UK intend to execute under the IMSA effective simultaneously with the execution and delivery of this Agreement.
(mmmmm)    “SOW Term” shall mean the term of the relevant SOW.
(nnnnn)    “Specific Patent Notice” shall have the meaning provided in Section 8.6.

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(ooooo)    “Steering Committee” shall have the meaning provided in Section 11.1.
(ppppp)    “Stipulated Payment Amount” shall have the meaning provided in Section 23.5(b).
(qqqqq)    “System Change” shall have the meaning provided in Section 11.4(d).
(rrrrr)    “Systems Software” shall mean those programs and programming (including the supporting documentation, media, on-line help facilities and tutorials) that perform (i) tasks basic to the functioning of the Equipment and which are required to operate the Applications Software; or (ii) tasks, other than as performed by Applications Software, otherwise supporting the provision of the Services by Ensono.  Programs and programming supporting the Services that are not Applications Software shall be deemed to be Systems Software.  Systems Software includes mainframe and mid-range operating systems, server operating systems, network operating systems, systems utilities (including measuring, monitoring and systems management tools), and data security software development tools (other than development tools for Applications Software) and, tele-communications monitors.  The designation of an item of Software as Systems Software shall not change any allocation of financial responsibility provided with respect to that Software elsewhere.  
(sssss)    “T&M Rates” shall have the meaning provided in Schedule C.
(ttttt)    “Technology Plan” shall have the meaning provided in Section 11.6.
(uuuuu)    “Term” shall have the meaning provided in Section 5.2.
(vvvvv)    “Termination For Convenience Charge” shall have the meaning provided in Section 14.5.
(wwwww)    “Termination/Expiration Assistance” shall have the meaning provided in Section 23.10(a).
(xxxxx)    “Third Party Service Contracts” shall mean those agreements pursuant to which a third party was, immediately prior to the relevant SOW Effective Date, furnishing or providing services to D&B or its Affiliates similar to the Services.
(yyyyy)    “Third Party Software” shall mean Software that is not Ensono Software or D&B Software.
(zzzzz)    “Transformation Plan” shall have the meaning provided in Section 4.3.
(aaaaaa)    “Transition Plan” shall have the meaning provided in Section 4.3.

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(bbbbbb)    “UCITA” shall have the meaning provided in Section 22.5(b).
(cccccc)    “Use” shall mean, in the context of Software or Materials, to use, copy, maintain, modify, enhance, distribute, or create derivative works.
(dddddd)    “Virus” shall have the meaning provided in Section 17.5. 
		
	2.2
	Inclusion of Affiliates in Definition of D&B and Ensono; Meaning of “party”.

(a)As used in this Agreement, references to “D&B” include Affiliates of D&B in accordance with the following:
(i)A reference includes Affiliates of D&B where expressly so provided;
(ii)References to D&B in the following definitions include Affiliates of D&B (unless expressly provided to the contrary): D&B Customer Information, D&B Confidential Information, D&B Data, D&B Information, D&B Materials, Developed D&B Materials and D&B Software;
(iii)References to sale, assignment, grant or the like by D&B means D&B will perform the act for itself or cause Affiliates of D&B to perform the act themselves; references to assets being in the name of D&B include Affiliates of D&B; and
(iv)References to the business, operations, policies, procedures and the like of D&B include Affiliates of D&B to the extent Affiliates are receiving the Services.
Subject to the foregoing, references to D&B shall include (i) Affiliates of D&B as D&B reasonably designates and (ii) any other Affiliate of D&B entering into an SOW hereunder.
(b)References to a “party” means D&B, on the one hand, and Ensono, on the other hand.  References to the “parties” means D&B and Ensono.
(c)As used in this Agreement, references to “Ensono” include Affiliates of Ensono in accordance with the following: 
(i)A reference includes Affiliates of Ensono where expressly so provided;
(ii)References to Ensono in the following definitions include Affiliates of Ensono (unless expressly provided to the contrary): Ensono Confidential Information, Ensono Materials, Ensono Software and Developed Ensono Materials; 

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(iii)References to sale, assignment, grant or the like by Ensono means Ensono will perform the act for itself or cause Affiliates of Ensono to perform the act themselves; references to assets being in the name of Ensono include Affiliates of Ensono; and
(iv)References to the business, operations, policies, procedures and the like of Ensono include Affiliates of Ensono to the extent Affiliates are providing the Services.
2.3    Rules of Interpretation.
(a)Terms other than those defined within this Agreement shall be given their plain English meaning, and those terms, acronyms and phrases known in the information technology services industry shall be interpreted in accordance with their generally known meanings.  Unless the context otherwise requires, words importing the singular include the plural and vice-versa, and words importing gender include both genders.  Unless the context otherwise requires to “persons” includes individual natural persons and juridical legal entities.
(b)References to articles, sections, and paragraphs shall be references to sections and paragraphs of this Agreement, unless otherwise specifically stated.  References to a Schedule that form part of an SOW (as noted above in the table of Schedules) is a reference to such Schedule in such SOW.
(c)The section headings in this Agreement are intended to be for reference purposes only and shall not be construed to modify or restrict any of the terms or provisions of this Agreement.
(d)Where there is similar, but not identical, construction of phrases, sentences, or clauses within this Agreement or the IMSA no implication is made that a “negative pregnant” is intended and they shall each be construed separately, in accordance with their plain meaning.
(e)The words “include”, “includes”, “including”, and “e.g.” when following a general statement or term, are not to be construed as limiting the general statement or term to any specific item or matter set forth or to similar items or matters, but rather as permitting the general statement or term to refer also to all other items or matters that could reasonably fall within its broadest scope.
(f)The word “may” (unless followed by “not”) shall be construed as meaning “shall have the right, but not the obligation, to”.
(g)Any reference to a foreign, federal, state, local, or other statute or law shall be deemed to also refer to all rules and regulations promulgated thereunder, unless the context otherwise requires.

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	3.
	SERVICES

		
	3.1
	Provision of Services.

(a)In General.  Commencing on the relevant SOW Effective Date, Ensono shall provide the services, functions and responsibilities described in this Agreement and its Schedules, including Schedule A, as each may be supplemented, enhanced, modified or replaced in accordance with this Agreement.  Additionally, commencing on the relevant SOW Effective Date, Ensono shall provide the services, functions and responsibilities described in each SOW, as each may be supplemented, enhanced, modified or replaced in accordance with this Agreement.  The foregoing are collectively referred to as the “Services”.
(b)Implied Services.  Other than D&B’s Retained Responsibilities, if any services, functions, or responsibilities are required for the proper performance and provision of the Services, regardless of whether they are specifically described herein, they shall be deemed to be implied by and included within the scope of the Services to be provided by Ensono to the same extent and in the same manner as if specifically described in this Agreement or the applicable SOW.  Except as otherwise expressly provided in this Agreement (including D&B’s Retained Responsibilities), Ensono shall be responsible for providing the facilities, personnel, and other resources as necessary to provide the Services.  
(c)Services Evolution.  Ensono shall cause the Services to evolve and to be modified, enhanced, supplemented and replaced as necessary for such Services to keep pace with technological advances and advances in the methods of delivering services, where such advances are at the time pertinent for such Services to keep pace with the general use within the IT and data management industry; provided however, in no event shall this provision be interpreted to require that any (i) Software used to provide the Services be more current than n-1 (where the “n” level of Software currency refers to the most current release of Software, and the “n-1” (n minus one) level of Software currency refers to the release that immediately precedes the most current release of Software) or (ii) Equipment used to provide the Services be refreshed more than as expressly required in this Agreement or the relevant SOW.  Adjustments in Services in accordance with this Section 3.1(c) shall be deemed to be included within the scope of the Services to the same extent and in the same manner as if expressly described in this Agreement. 
(d)Services Variable In Scope and Volume.  The Services are variable in scope and volume.  Such variations are provided for in the pricing mechanisms set forth in Article 14, the Change Control Procedure set forth in Schedule A, Charges defined in SOWs hereunder, and in Schedule C.  Ensono shall be responsible for adjusting the resources used to provide the Services to accommodate the changes in scope and volume in such a manner as to comply with all Performance Standards.  Ensono shall not be entitled to receive an adjustment to the Charges resulting from such variations in scope and volume except as set forth in Article 14, the Change Control Procedure set forth in Schedule A, in the Charges portions of SOWs hereunder, and in Schedule C.

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(e)Services Performed by D&B or Third Party.
(i)Except as provided in an SOW, D&B has the right to perform itself, or retain third parties to perform, any of the Services.
(ii)If D&B performs any of the Services itself, or retains third parties to do so, Ensono shall cooperate with D&B or such third parties, at D&B’s expense.  Such cooperation shall include providing such information regarding the Software, Materials, data and Equipment in use pursuant to this Agreement, as a person with reasonable commercial skills and expertise would find reasonably necessary for D&B or a third party to perform its work.  If D&B reduces the Services pursuant to this Section 3.1(e), the Charges shall be adjusted as provided in the applicable SOW. 
(iii)Third parties retained by D&B shall comply with Ensono’s reasonable security and confidentiality requirements and (to the extent failure to do so would substantially impact on Ensono’s performance) with Ensono’s reasonable work standards, methodologies, and procedures, as have been provided by Ensono.  Ensono shall promptly notify D&B if an act or omission of such a third party may cause a problem or delay in providing the Services and shall work with D&B to prevent or circumvent such problem or delay.
3.2    Intentionally Omitted.
3.3    Intentionally Omitted.
3.4    Permitted Users of the Services.
The Services may be used by D&B and, as directed by D&B, (i) its Affiliates and those third parties (such as customers, suppliers, and joint venturers) with whom D&B or any Affiliate has a commercial relationship which includes the resale of the Services provided hereunder through D&B’s distribution network and (ii) those persons (which may be as broad as the general public) who D&B or its Affiliates permits access through the internet and similar methods.  Services provided to such entities shall be deemed to be Services provided to D&B; provided however, that this Section 3.4 shall not be interpreted to allow any such entity to be deemed in legal privity with Ensono and is subject to Section 26.15.  D&B shall be responsible to Ensono for any breach of this Agreement caused by a party permitted by D&B to use the Services hereunder.  D&B may permit its customers, suppliers, and similar third parties to install, maintain, and connect communications networks to third party routers and other communications equipment without additional charges (other than those associated with the related Resource Units, if any); provided that, requests by D&B to install substantial volumes of third party equipment in Ensono’s data center that are not covered by Resource Units shall be subject to, and reviewed through, the Change Control Procedure.  

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3.5    SOWs.
(a)D&B and Ensono, and their respective Affiliates (including additional D&B business units and/or geographic territories), may execute SOWs substantially in the form attached hereto as Schedule L in order for Ensono (and/-or its Affiliates) to provide (and for D&B (and/or its Affiliates) to receive) Services during the Term.  The provision of all such Services (including to additional D&B business units and/-or geographic territories) provided pursuant to an SOW shall be deemed to be the provision of “Services” hereunder.  An SOW shall provide a description of the Services and/-or Project to be provided by Ensono to D&B.  All Charges for Services and the charging methodology provided by Ensono pursuant to the SOW (including, if necessary charges for travel-related or other incidental expenses, Pass-Through Expenses and Out-Of-Pocket Expenses) shall be set forth in the SOW.
(i)Neither party shall have any obligation unless and until a specific SOW setting forth the specific terms with respect to Services to be provided and received has been executed by both of the parties.
(ii)Other than SOW #9 (which is being executed simultaneously with the execution and delivery of this Agreement) no SOW under this Agreement shall be effective unless and until the D&B Global Sourcing & Procurement Office (“GS&P”) provides its approval of the terms in such SOW, which approval must be evidenced by the GS&P’s execution of such SOW.  Ensono shall be entitled to rely, without further inquiry, on the authenticity of such signature and authority of the person signing on behalf of the GS&P.
(iii)Each individual SOW shall identify the specific Ensono entity (i.e., Ensono and/or an Ensono Affiliate(s)) providing Services and the specific D&B entity (i.e., D&B and/or a D&B Affiliate(s)) receiving Services, and each party may so utilize an Affiliate to enter into an SOW.
(b)The following provisions will be addressed in individual SOWs, as necessary and as applicable:
(i)Legally necessary exceptions and additions, local and country-specific exceptions and additions, and transaction-specific exceptions and additions to the uniform terms and conditions in this Agreement, as well as additional terms and conditions specific to the Services provided under such SOW;
(ii)Provisions governing the transfer of assets (e.g., hardware, software, third party service contracts) and/or personnel to Ensono;
(iii)Disaster recovery provisions applicable to the Services to be provided by Ensono; and
(iv)In jurisdictions where the Acquired Rights Directive (or equivalent legislation) is effective, appropriate enabling provisions for those instances where employees of D&B are affected.  Similarly where either party is obligated to consult with works councils or similar groups, the parties shall fully comply with

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 such requirements, and the relevant SOW shall set forth any contractual requirements in such regard.
(c)Unless expressly provided otherwise in the applicable SOW, each SOW shall be deemed a part of and subject to all terms in this Agreement.
(d)Any future amendment to or modification of the terms and conditions of this Agreement shall be deemed incorporated into each SOW without the necessity of further action by either party, provided that such amendment or modification complies with Section 26.18 herein.
(e)If there is a conflict between (x) an SOW, and (y) this Agreement, the terms of the SOW shall prevail as to:
(i)Ensono’s and D&B’s respective rights and obligations under that SOW, provided that if such conflict relates to Article 8 (Intellectual Property Rights And Restrictions), 14 (Charges), 15 (Invoicing and Payment), 20 (Liability) or 23 (Termination) of this Agreement, then in order for the conflicting provision of the SOW to prevail: such conflict must be expressly listed in such SOW as a conflict (within a Section of such SOW that lists all such SOW-specific conflicts); and 
(ii)issues involving local, country-specific law.
(f)An SOW may also describe a particular Project to be provided by Ensono to D&B.  A “Project” is comprised of work that is: (a) expressly deemed to be a Project in this Agreement, or (b) a discrete unit of non-recurring work that generally requires startup, planning, execution, and completion.  For all Projects proposed or requested by D&B, Ensono shall develop a Project Plan if necessary and comply with the Project Management Process.  If Ensono proposes or requests a Project, and D&B agrees that the proposed work properly constitutes a Project in accordance with the definition provided above, Ensono shall develop a Project Plan, if necessary, and comply with the Project Management Process.  No work will be considered a Project unless and until D&B approves the SOW and associated estimate, in writing.  For purposes of clarification, all work with respect to “Projects” pursuant to SOWs shall be deemed to be “Services” governed by this Agreement.
(g)If D&B Affiliates and/or Ensono Affiliates enter into any SOW and either Affiliate fails to perform under such SOW for any reason, the applicable contracting company (Ensono, LP or Dun & Bradstreet, Inc., or the successor to either company) will be secondarily responsible hereunder for such performance (or failure to perform).
		
	4.
	TRANSITION & TRANSFORMATION

		
	4.1
	Context.

The Services have already been transitioned from D&B’s prior service provider to Ensono.  The following provisions shall only be applicable if in the future

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 D&B transitions additional functions to Ensono.  However, to the extent the following provisions apply to transformation of the Services they shall apply to the transformation contemplated by Schedule A.
		
	4.2
	Major Milestones.

(a)Each SOW shall identify major events relating to the products or services provided by Ensono to D&B pursuant to such SOW (“Major Milestones”), if any, and dates by which such Major Milestones are to be achieved.  Ensono shall achieve each Major Milestone by the applicable date set forth in the applicable SOW.  Completion of each Major Milestone shall require successful achievement of each interim milestone upon which such Major Milestone depends, which interim milestones are included in such SOW (and Acceptance Criteria for each Major Milestone shall include D&B’s acceptance that such interim milestone(s) have been successfully achieved).  A failure by Ensono to substantially conform to any such Major Milestone in accordance with the preceding sentence, as approved by D&B in writing in accordance with the Project Management Process, will entitle D&B, in addition to any other rights set forth in this Agreement or available to D&B in law or at equity for Ensono’s breach of this Agreement, to exercise the remedies described in such SOW.
(b)D&B shall have the right to monitor, test and otherwise observe and participate in the Services as described in the applicable SOW hereunder.  Ensono will promptly notify D&B if any D&B monitoring, testing, participation, or other action has caused (or Ensono expects it to cause) a problem or delay in the delivery of Services, and work with D&B to prevent or circumvent the problem or delay.
(c)Approval of each Major Milestone by D&B and the completion of the transition (if any) described in an SOW hereunder shall be subject to (i) each such Major Milestone included in such SOW meeting corresponding acceptance criteria with respect to such Major Milestone, as such acceptance criteria are described in the applicable SOW (and as such acceptance criteria may be updated during the Term) and (ii) the applicable Acceptance Procedure with respect to such Milestones (which may include the Acceptance Procedures provided in the Project Management Process.
		
	4.3
	Transition and Transformation Plans.

(a)The “Transition” and “Transformation” described in a SOW, if any, shall be conducted in accordance with mutually agreed written plans (the “Transition Plan” and the “Transformation Plan”, respectively) which may each include: 
(i)a description of the operations being transitioned and transformed, respectively;
(ii)a general description of the methods and procedures, personnel and organization Ensono shall use to perform the Transition and Transformation; 
(iii)a schedule of Transition and Transformation activities; 

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(iv)Major Milestones for Transition and Transformation;
(v)a detailed description of the respective roles and responsibilities of D&B and Ensono; and
(vi)such other information and planning as are necessary to conduct the Transition and Transformation in accordance with the other terms in this Agreement.  
(b)If an SOW has drafts of a Transition Plan and/-or Transformation Plan attached, Ensono shall be responsible for revising and finalizing such Transition Plan and Transformation Plan, provided that: (i) Ensono shall cooperate and work closely with D&B in finalizing the plans (including incorporating D&B’s reasonable comments); and (ii) all changes to the plans shall be subject to approval by D&B, which approval shall not be unreasonably withheld, delayed or conditioned.
		
	4.4
	Conduct of the Transition and Transformation.

(a)Except (i) with D&B’s prior consent or (ii) if necessary in the event of an emergency such that it would be impractical for Ensono to obtain such prior consent (and solely for so long as the emergency continues), Ensono shall perform the Transition and Transformation in accordance with the Transition Plan, Transformation Plan and the Change Control Procedure.  D&B shall cooperate and provide reasonable assistance with respect to the Transition and Transformation as specified in the Transition Plan and Transformation Plan or as otherwise requested reasonably in advance by Ensono.
(b)[Intentionally Omitted] 
(c)Except as specifically provided in the applicable Transition Plan, no functionality of D&B IT operations being migrated pursuant to a Transition shall be disabled until such functionality has been established, tested, and accepted in the new location in accordance with the requirements provided in the Transition Plan. 
(d)Provided that it does not interfere with or delay the Transition or Transformation in ways that are more than insubstantial and not contemplated by the Transition Plan or Transformation Plan, D&B may monitor, test, and otherwise participate in the Transition and Transformation.  Ensono shall promptly notify D&B if such monitoring, testing, or participation has caused (or in Ensono’s reasonable opinion may cause) a problem or delay in the Transition or Transformation and the parties will work together to avoid the problem or delay.
		
	4.5
	Additional Terms.

(a)D&B may require Ensono to stop proceeding with all or any part of the Transition or Transformation at any time; provided, however, that in such event: 
(i)D&B shall reimburse Ensono on an Out-of-Pocket Expense basis for any incremental costs incurred by Ensono as a result of any delay caused by

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 such D&B requirement to stop proceeding, to the extent such costs cannot reasonably be avoided; 
(ii)Ensono will be excused for delays in its performance under this Agreement to the extent reasonably and directly caused by D&B’s requirements under this provision and Ensono’s time period for performance will be equitably extended based on the then-prevailing circumstances; and
(iii)D&B may not require Ensono to stop proceeding with the Transition or Transformation for a period in the aggregate of longer than ninety (90) days.  If any such suspension delays the Transition Completion Date, the Initial SOW Term (as defined in the relevant SOW) shall be extended day for day by the actual impact of the delays on the Transition Completion Date.  
		
	5.
	TERM

		
	5.1
	Term.

The term of this Agreement (and SOW #9) shall begin on the Effective Date and shall expire on December 31, 2021, unless terminated earlier or extended in accordance with this Agreement (such period, the “Initial Term”).
		
	5.2
	Extension.

By providing written notice to Ensono in accordance with Section 26.4 at least six (6)) months before the then current expiration of the Term, D&B shall have the right and option to extend the Term for three (3) additional periods of up to one (1) year each, as D&B may designate.  Any renewal period of this Agreement shall be referred to as the “Renewal Term”, and, collectively, the Initial Term and the Renewal Term shall constitute the “Term”.  Unless otherwise provided in D&B’s notice, the Term of any SOW that is linked to the Term of this Agreement shall also be so extended.
		
	6.
	ENSONO PERSONNEL

		
	6.1
	Key Ensono Positions.

(a)“Key Ensono Positions” shall be the positions (and corresponding roles) set forth as such in Schedule D.  Ensono shall cause each of the Ensono Personnel filling the Key Ensono Positions to devote substantially full time and effort to the provision of the Services.  Ensono Personnel approved as of the Effective Date to fill the Key Ensono Positions are listed in Schedule D.  Additionally, each SOW may contain, to the extent agreed by the parties, one or more additional Key Ensono Positions as expressly identified in such SOW, which number shall be dependent upon the scope of the Services provided under such SOW.  In accordance with Section 6.1(b), Ensono shall designate an individual to serve as “Ensono Delivery Director”.  The Ensono Delivery Director shall be one of the Key Ensono Positions and he or she shall be a member of the Management Committee.  The Key Ensono Position approved as of the Effective Date to fill the role of the Ensono Delivery Director is

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 listed in Schedule D.  The Ensono Delivery Director shall (i) serve as the single point of accountability for Ensono for the Services; and (ii) have day-to-day authority for undertaking to ensure the provision of the Services and customer satisfaction.  The Ensono Delivery Director’s compensation shall include significant financial incentives based on D&B’s satisfaction with the Services.  The Ensono Delivery Director shall be based at a location reasonably convenient to D&B’s offices in the Short Hills, NJ area (travel to/-from such location shall not be chargeable to D&B) and will travel upon an as-needed basis, as reasonably requested by D&B, to D&B’s office locations or other locations reasonably designated by D&B from time to time.
(b)Before assigning an individual to a Key Ensono Position, whether as an initial assignment or a subsequent assignment, Ensono shall notify D&B of the proposed assignment, introduce the individual to appropriate D&B representatives, provide such representatives upon request with the opportunity to interview the individual, and provide D&B with a resume and other information about the individual reasonably requested by D&B.  If D&B objects in good faith to the proposed assignment of any proposed Key Ensono Position, the parties shall attempt to resolve D&B’s concerns on a mutually agreeable basis.  If the parties have not been able to resolve D&B’s concerns within five (5) Business Days, Ensono shall not assign the individual to that position and shall propose to D&B the assignment of a different individual of suitable ability and qualifications.
(c)Except with D&B’s consent (which may be arbitrarily withheld) individuals filling Key Ensono Positions may not be transferred or re-assigned to other positions with Ensono or its Affiliates (i) for at least one (1) year following their assignment (or expiration of the SOW, if any, under which they are identified as a Key Ensono Position, if shorter than one (1) year), and (ii) until a suitable replacement has been approved by D&B.  No such transfer shall occur at a time or in a manner that would have a non-insubstantial adverse impact on delivery of the Services.  Ensono shall establish and maintain an up-to-date succession plan for the replacement of individuals serving in Key Ensono Positions that shall be reviewed with D&B on a regular basis.
(d)So long as an individual is assigned to a Key Ensono Position and for twelve (12) months thereafter, Ensono shall not assign such individual to perform services for the benefit of any D&B Competitor, nor shall such individual at any time disclose any D&B Confidential Information to any third party or to any person at Ensono who does not have a need to know such Confidential Information in order for Ensono to provide the Services to D&B.  
		
	6.2
	Qualifications, Retention and Replacement of Ensono Personnel.

(a)Ensono shall assign an adequate number of Ensono Personnel to perform the Services.  Ensono Personnel shall be properly educated, trained, and fully qualified for the Services they are to perform, and Ensono shall ensure (to the extent reasonably possible) that any outgoing Ensono Personnel leaving the D&B account spend a reasonable period of time training the new Ensono Personnel who will be replacing such outgoing personnel.  If any portion of the Services provided by Ensono

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 Personnel is a separately chargeable resource Ensono shall not charge D&B for the time or other costs of training Ensono Personnel to become familiar with D&B’s account or business.  Ensono is responsible for ensuring that Ensono Personnel assigned to perform the Services have the legal right to work in the country(ies) in which they are assigned to work.
(b)Background Checks.  
(i)Ensono shall ensure that prior to assigning any individual to perform the Services in the UK, Ireland, Poland and the United States, Ensono shall have performed employment, drug and background screening on such person in accordance with Ensono’s standard employment screening policies, the version of which screening policies (as of the Effective Date) is provided in Schedule K.  During the Term, Ensono shall provide D&B written notice of any material changes to such screening policies.  
(ii)With respect to Services to be performed outside of the UK, Ireland, Poland and the United States, the relevant SOW shall set forth the equivalent background screening requirements under both local law and (to the extent applicable) U.S. law; provided however, that unless otherwise agreed within an SOW:
(A)in countries outside of the UK, Ireland, Poland and the United States that permit background checks, permit employment decisions based on background checks, and do not restrict employment decisions if a potential employee refuses to allow a background check, then background checks shall be performed; and
(B)in other countries (i.e., countries that do restrict background checks and/or employment decisions based on background checks in some manner), Ensono shall (1) so inform D&B and (2) unless D&B otherwise agrees (within an SOW) that the following are not necessary, Ensono shall (x) ensure that Services are provided from facilities in such country with appropriate physical and logical security, as agreed by the parties (e.g., provide Services from facilities that do not have printers or USB ports), or (y) restrict the type of work performed from facilities in such country (as agreed by the parties).  
(c)While at D&B’s premises (or the premises of others receiving the Services hereunder), Ensono Personnel shall (i) comply with D&B’s requests, rules, and regulations regarding personal and professional conduct (including the wearing of an identification badge and adhering to regulations and general safety, dress, behavior, and security practices or procedures) generally applicable to such premises; (ii) comply with D&B security policies; and (iii) otherwise conduct themselves in a businesslike and professional manner.
(d)If D&B determines in good faith (and for reasons that would not be legally impermissible for an employer to make as to one of its own employees) that the continued assignment to D&B’s account of one or more of the Ensono Personnel is not in the best interests of D&B, then D&B shall give Ensono notice to that effect.  After receipt of such notice, Ensono shall have a reasonable period of time in which to

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 investigate the matters stated in such notice, discuss its findings with D&B and resolve the problems with such person.  If, following such period, D&B requests replacement of such person, Ensono shall replace that person with another person of suitable ability and qualifications.  However, where D&B notifies Ensono that D&B has determined that the nature of the concern is of such that such Ensono Personnel should be removed immediately (albeit temporarily) from D&B’s account, Ensono shall immediately remove such individual(s) from D&B’s account.  In any event, any request by D&B to remove an individual from D&B’s account shall not be deemed to constitute a termination of such individual’s employment by Ensono and in no event shall D&B be deemed an employer of any such person.  This provision shall not operate or be construed to limit Ensono’s responsibility for the acts or omissions of Ensono Personnel.
		
	6.3
	Fair Employment Practices.  

Ensono warrants, represents, and covenants to D&B that it will comply with all Applicable Laws and Regulations of the United States and those of the countries in which D&B receives Services (including laws relating to health and safety, labor, personal information privacy, law enforcement cooperation and environmental protection) to the extent such Applicable Laws and Regulations are applicable to Ensono’s implementation of this Agreement and performance of its obligations under this Agreement.  Without limiting the generality of the foregoing, Ensono agrees:
(a)Not to knowingly use child labor in providing Services; provided that the term “child” will refer to an individual younger than the age of completing compulsory education, and in no case will any child younger than 16 years of age be employed in providing Services;
(b)To provide employees with a safe and healthy workplace in compliance with all applicable laws and to provide D&B with all information D&B may request about the facilities from which Services are provided;
(c)Only to employ individuals whose presence is voluntary and not to use prison labor, or to use corporal punishment or other forms of mental or physical coercion as a form of discipline of employees;
(d)To comply with all applicable wage and hour laws, including those pertaining to minimum wage, overtime or maximum hours; and to utilize fair employment practices as provided in Applicable Law and Regulations;
(e)Not to discriminate in hiring or employment practices on grounds of race, religion, national origin, sexual orientation, political affiliation, social status, age, sex, or disability;
(f)To obtain all governmental licenses, approvals, authorizations and permits regulating Ensono as a services provider as required from time to time and to pay all fees and taxes associated with obtaining and maintaining such licenses, approvals, permits and authorizations throughout the Term;

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(g)To take all necessary steps to obtain any approval or registration of this Agreement (the “Required Registrations”) that may be required, either initially or at any time during the Term, in order to give this Agreement legal effect in the countries from which Ensono provides Services.  Ensono shall, at its sole expense, take whatever steps may be necessary to secure such Required Registration, immediately and prior to commencing any activities which are subject to such approval or registration;
(h)Not to, directly or indirectly, make, offer or agree to make, or offer on behalf of D&B or its Affiliates, any loan, gift, donation or other payment, directly or indirectly, whether in cash or in kind, for the benefit of or at the direction of any candidate, committee, political party, political function, government or government subdivision, or any individual elected, appointed or otherwise designated as an employee or officer thereof, for the purposes of influencing any act or decision of such entity or individual or inducing such entity or individual to do or omit to do anything in order to obtain or retain business or other benefits in violation of the United States Foreign Corrupt Practices Act; and
(i)Not to, directly or indirectly, take any action that would cause D&B or any of its Affiliates or Ensono to be in violation of United States anti-boycott laws under the United States Export Administration Act or the United States Internal Revenue Code, or any regulation thereunder.
		
	7.
	RESPONSIBILITY FOR RESOURCES

		
	7.1
	Generally.

Except to the extent specifically provided elsewhere in this Agreement or in an SOW hereunder, Ensono shall be responsible for providing all resources (including facilities, services, telecommunications, Software, Equipment, personnel, storage, etc.) necessary or desirable to provide the Services and will only recover such costs through: the Charges for Services described in SOWs hereunder, the Resource Unit methodology, and the other charges expressly provided in Schedule C or in SOWs hereunder.  Refresh of all such Equipment resources shall be at Ensono’s expense and in Ensono’s discretion, except as otherwise expressly provided in this Agreement or the relevant SOW, and shall not result in any increase in the Charges except (a) as otherwise expressly provided in an SOW or (b) as to Equipment that is owned or leased by D&B and for which Ensono does not have financial responsibility as provided in an SOW. 
		
	7.2
	Financial Responsibility for Equipment.

Financial responsibility for (a) acquisition, lease, and ownership costs for Equipment, including current and future Equipment, upgrades, enhancements, growth and technology refreshments and (b) all costs and expenses related to operational support, including installation, support, hardware maintenance, disaster recovery, service levels, and moves, adds and changes shall be allocated between the parties as provided in the applicable SOW.

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	7.3
	Equipment Access and Operational and Administrative Responsibility.

(a)Operational and Administrative Responsibility.  Except as provided in the next sentence, Ensono and its Affiliates shall be administratively and operationally responsible for the Equipment used to provide the Services, including provisioning, staging, configuring, warehousing, shipping, installing, operating, maintaining, upgrading, and enhancing the Equipment, all as set forth in more detail in Schedule A and in the applicable SOW, including any Financial Responsibility Matrix in such SOW.  Any Equipment required to provide the Services (as opposed to Equipment that D&B itself uses in connection with the Services) for which D&B is financially, legally (i.e., the title or the lease in such party’s name), operationally (i.e., responsible for maintenance and operations) and administratively (i.e., responsible for lease or license renewals and for interacting with the third party vendor) responsible shall be expressly identified in an SOW hereunder, including the Charges therefor.
(b)Pass-Through Equipment.  If the parties agree that Ensono’s or its Affiliates’ financial responsibility with respect to any Equipment is to be on a Pass-Through Expense basis, such Equipment shall expressly be identified in the applicable SOW hereunder.  Any such Equipment that is provided on a Pass-Through Expense basis shall be purchased or leased in the name of D&B (or its designated Affiliate), unless otherwise provided within an SOW hereunder.  Ensono shall be responsible for such Equipment during the Term to the same extent as if Ensono were the owner or lessee (as applicable) of such Equipment.  If such Equipment is leased, Ensono shall comply with the requirements imposed on D&B (or, if applicable, its Affiliate) under the leases approved by D&B for such Equipment.
		
	7.4
	Financial Responsibility for Software.

(a)Generally.  D&B will be responsible for the cost of all D&B proprietary Applications Software, except as otherwise expressly identified in this Agreement or in an SOW.  Ensono will be responsible for the cost of all third party Applications Software, except as otherwise expressly identified in the applicable SOW.  Ensono will be responsible for all Systems Software costs, including database management systems, except as otherwise expressly set forth in an SOW.
(b)Licenses.  Where this Agreement or an SOW otherwise provides that D&B shall be the licensee for Software and Ensono can demonstrate to D&B’s satisfaction an economic advantage from Ensono, an Ensono Affiliate, or an Approved Subcontractor being the licensee of any particular Software, then Ensono, such Ensono Affiliate, or such Approved Subcontractor may (after obtaining D&B’s approval) be the licensee if Ensono provides D&B and its Affiliates with an appropriate license (with commercially reasonable maintenance terms) for such Software which shall become effective upon the expiration or termination of this Agreement and/or the applicable SOW (or the part of the Services to which such Software relates).

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	7.5
	Required Consents.

Except with respect to Software that is identified in an SOW hereunder as being D&B’s responsibility to obtain Required Consents, Ensono and its Affiliates shall be responsible, with D&B’s and its Affiliates’ reasonable co-operation, for obtaining the Required Consents for Software as necessary to perform the Services, and Ensono shall be responsible for those fees (including transfer or upgrade fees, additional licenses, sublicenses, and maintenance fees) required to obtain such Required Consents.  The parties shall co-operate with each other so as to minimize such costs.  As and to the extent consent is obtained for Ensono and its Affiliates to manage and utilize the Software or a contract but the relevant license or such contract remains in D&B’s or an Affiliate’s name, D&B and its Affiliates shall exercise termination, extension, and other rights thereunder as Ensono, after consultation with D&B, reasonably directs.  If a Required Consent is not obtained, then, unless and until such Required Consent is obtained, Ensono shall determine and promptly adopt, subject to D&B’s approval, such alternative approaches as are necessary and sufficient to provide the Services without such Required Consents.  
		
	8.
	INTELLECTUAL PROPERTY RIGHTS AND RESTRICTIONS 

This Article addresses the parties’ respective rights in Software and other Materials.  Grant by D&B to Ensono of a license to Use or of rights of Use pursuant to this Article 8 shall, subject to the other provisions of this Agreement, be deemed to include grant of such license or rights to Ensono’s Affiliates and Approved Subcontractors.  Software made available to Ensono by D&B is made available on an “AS IS” basis, with no warranties whatsoever and any and all warranties that might be implied by statute are hereby excluded.  
		
	8.1
	D&B Software & Materials.

D&B retains all right, title, and interest in and to D&B Software and other D&B Materials.  D&B grants to Ensono a worldwide, fully paid-up, nonexclusive license to Use D&B Software and other D&B Materials during the Term solely to the extent necessary for performing the Services.  D&B Software and other D&B Materials will be made available to Ensono in such form and on such media as exists on the Effective Date of the SOW under which they are to be made available or as are later obtained by D&B, together with available documentation and any other related materials.  Ensono shall not be permitted to Use D&B Software or other D&B Materials for the benefit of any entities other than D&B and its Affiliates without the prior written consent of D&B, which may be withheld at D&B’s discretion.  Ensono shall install, operate, and support (and otherwise treat in the same manner as D&B Software existing as of the Effective Date) additional D&B Software and/or D&B-provided Third Party Software that D&B may designate from time to time during the Term, subject to the parties’ agreement as to the charge for such.  Except as otherwise permitted by this Agreement (e.g., Termination/Expiration Assistance) or as requested or approved by D&B, Ensono shall cease all Use of D&B Software and other D&B Materials upon expiration or termination of the SOWs under which they are required.

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	8.2
	Ensono Software and Materials.

This Section 8.2 provides terms that apply to all Ensono Software, except as provided otherwise in Sections 8.2(b) and 8.3(b) with respect to Ensono Software.  
(a)Ensono retains all right, title and interest in and to Ensono Software and other Ensono Materials.  
(b)This Section 8.2(b) shall apply solely with respect to Ensono Software:
(i)Each SOW shall list the Ensono Software (if any) that Ensono is permitted to Use under the SOW.  Ensono shall not Use any additional Ensono Software (including any Ensono proprietary Software tools necessary to utilize work flows provided to D&B) to provide Services under an SOW (“New Ensono Software”) without first (A) notifying D&B in writing as to whether such New Ensono Software is Commercially Available or Non-Commercially Available; and (B) obtaining D&B’s prior written approval, which approval D&B may withhold in its discretion.
(ii)If Ensono Uses any New Ensono Software to provide Services without first notifying and obtaining approval from D&B as required by Section 8.2(b)(i) above, such New Ensono Software shall be deemed to be Commercially Available.
(iii)If any such New Ensono Software that will be Used to provide Services during an applicable SOW Term is Commercially Available, if D&B elects to do so, it shall have the right to obtain a license to such Software: (A) upon termination or expiration of the SOW, and (B) on commercially reasonable: (I) license, (II) maintenance (if Ensono provides maintenance with regard to such New Ensono Software and if D&B elects to obtain maintenance from Ensono), and (III) pricing terms; provided that such terms shall not be more restrictive or require greater consideration than offered by Ensono to similar entities in similar circumstances.  The parties shall negotiate such post-termination/expiration license, maintenance, and pricing terms either (as elected by D&B): (1) prior to the Use of such Commercially Available New Ensono Software during the applicable SOW Term, or (2) upon provision of any notice of termination or of non-renewal of the SOW; provided however, that if the SOW expires or terminates prior to the parties’ agreement on the terms applicable to D&B’s Use of such New Ensono Software after termination or expiration of the SOW, then commencing upon such termination or expiration and extending until such time that appropriate terms are agreed to by the parties and take effect, D&B shall have the right to Use such New Ensono Software: (a) on the same terms (including pricing, if any) as existed prior to such termination or expiration, and (b) without impact to D&B’s ongoing Use of such New Ensono Software.  If any New Ensono Software was being Used by D&B during the applicable SOW Term at no charge or fee and if the SOW expires or terminates prior to the parties’ agreement on the terms applicable to D&B’s Use of such New Ensono Software after termination or expiration of the SOW, then when such terms are

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 agreed to by the parties and take effect, the relevant pricing included within such terms shall be retroactive to the effective date of termination or expiration of the SOW, unless otherwise agreed by the parties within such terms.
(c)Ensono shall be responsible for installing, operating, and maintaining Ensono Software at its own expense.
		
	8.3
	Third Party Software.

(a)With respect to the Third Party Software licensed by D&B, subject to the parties having obtained any Required Consents for Third Party Software in the manner provided in Section 7.5, D&B grants to Ensono solely to the extent necessary for performing the Services, the rights of Use of such Software (and available documentation and other related materials) that D&B has as of the Effective Date or as D&B later obtains.  Ensono shall comply with the duties, including Use restrictions and those of nondisclosure, imposed on D&B by the licenses for such Software (and available documentation and other related materials), and Ensono shall not seek to modify or otherwise revoke such terms.  Except as otherwise permitted by this Agreement (e.g., Termination/Expiration Assistance) or as requested or approved by D&B, Ensono shall cease all Use of such Software (and available documentation and other related materials) upon expiration or termination of the SOWs under which they are required.
(b)The terms in this Section 8.3(b) shall apply solely with respect to Use of Third Party Software.  
(i)Each SOW shall list the Third Party Software (if any) that Ensono is permitted to Use to provide Services under the SOW.  Ensono shall not Use any additional Third Party Software (including any third party-proprietary Software tools necessary to utilize work flows provided to D&B) to provide Services under the SOW (“New Third Party Software”) without first (A) notifying D&B in writing as to whether such New Third Party Software is Commercially Available or Non-Commercially Available; and (B) obtaining D&B’s prior written approval, which approval D&B may withhold in its discretion.
(ii)If any such New Third Party Software that will be Used to provide Services during the applicable SOW Term is Commercially Available, prior to granting its approval for the Use of such New Third Party Software, D&B shall have the right to negotiate and obtain appropriate license, maintenance or pricing terms from the New Third Party Software vendor applicable to D&B’s Use of such New Third Party Software upon termination or expiration of the SOW, and shall have the right to withhold its approval for the Use of such New Third Party Software if D&B is unable to obtain such terms from the New Third Party Software vendor.  At D&B’s request, Ensono will assist D&B in negotiating and obtaining such terms.
(c)If requested by D&B during the applicable SOW Term (including if an event occurs that will result in a termination or expiration of the SOW), Ensono will provide to D&B a list of Third Party Software Used to provide the Services.

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	8.4
	Rights in Newly Developed Materials.  

(a)Developed D&B Materials.  “Developed D&B Materials” shall mean any of the following:
(i)newly developed Materials that do not modify or enhance pre-existing Materials; 
(ii)as between D&B and Ensono and subject to any applicable third party license agreements, modifications to or enhancements (including derivative works) of, Third Party Software (including open source Software), and notwithstanding the exclusion in Sections 8.4(a)(i) above:
(A)any modifications to, or upgrades or enhancements (including derivative works) of: (1) D&B Software; (2) D&B Materials; or (3) Materials to the extent they contain D&B Confidential Information, subject to Section 8.4(f);
(B)interfaces and process flows developed pursuant to this Agreement; 
(C)configurations of Software, methods of integration of Software, business rules, scoring models, business logic, work flows, business specifications, requirements, and related documentation that are (1) developed for the D&B Software or other D&B Materials; (2) developed for Third Party Software; (3) developed under this Agreement specifically for D&B to receive or use the Services; or (4) described in SOWs hereunder; and
(D)any Materials otherwise identified in this Agreement or an SOW as Developed D&B Materials; and any items expressly identified as “Deliverables” within any SOW. 
(b)Developed Ensono Materials.  “Developed Ensono Materials” shall mean any of the following Materials developed independently by Ensono or its Affiliates or Approved Subcontractors (alone or jointly with others) outside the scope of this Agreement or developed pursuant to this Agreement by Ensono or its Affiliates or Approved Subcontractors (alone or jointly with others):
(i)any modifications to, or upgrades or enhancements (including derivative works) of: (A) Ensono Software; (B) Ensono Materials; or (C) Materials to the extent they contain Ensono Confidential Information; provided such modifications, upgrades or enhancements do not contain any D&B Confidential Information, and excluding (in the case of items (A) through (C)) any Materials deemed Developed D&B Materials under Section 8.4(a); and 
(ii)configurations of Software, methods of integration of Software, business rules, scoring models, business logic, work flows, business specifications, requirements, and related documentation that are developed for the Ensono Software or other Ensono Materials; provided such configurations, methods, business rules, scoring models, business logic, work flows, business specifications,

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(iii) requirements, and other documentation do not contain any D&B Confidential Information, and excluding any Materials deemed Developed D&B Materials under Section 8.4(a).
(c)Rights.  
(i)D&B shall have all Intellectual Property Rights and all right, title, and interest (limited to the extent permitted by the terms of any governing Third Party Software licenses with respect to Section 8.4(a)(ii) above) in and to Developed D&B Materials and all copies made from them.  With respect to Developed D&B Materials, Ensono shall have the rights granted in Section 8.1.
(ii)Ensono shall have all Intellectual Property Rights and all right, title, and interest (limited to the extent permitted by the terms of any governing Third Party Software licenses) in and to Developed Ensono Materials and all copies made from them, subject to any license rights granted to D&B under this Agreement.
(d)Ownership of Copyright.  Developed D&B Materials created in the United States shall be deemed “works made for hire” for D&B for purposes of copyright law.  All Developed D&B Materials shall belong solely and exclusively to D&B, and D&B will possess all ownership rights in and to such Developed D&B Materials, and all Intellectual Property Rights associated therewith.  Ensono shall include and enforce appropriate provisions in all subcontracts to ensure D&B’s exclusive ownership of Deliverables as set forth and described herein.  To the extent any of the Developed D&B Materials are not deemed “works made for hire” by operation of law (including in countries where the “works made for hire” doctrine does not apply), and in consideration of the sum of €1 (the receipt of which Ensono hereby expressly acknowledges) Ensono hereby assigns to D&B all of its right, title and interest, including future rights in and to such Developed D&B Materials, including all Intellectual Property Rights in such materials.  D&B (and its successors and assigns) may obtain and hold in their own name all such Intellectual Property Rights in and to such materials.  Ensono agrees to execute any documents or take any other actions as may reasonably be necessary, or as D&B may reasonably request, to perfect D&B’s ownership of any such Developed D&B Materials, without additional consideration and regardless of whether during or after the Term.  Within a reasonable time after their creation (but in no event more than twice a year), Ensono shall provide D&B written notice of any Developed D&B Materials created hereunder.
(e)Source Code.  To the extent any Developed D&B Material consist of Software, Ensono shall provide source code and artefacts (e.g., documentation, use cases, test scripts, design models, activity diagrams, systems configuration) that Ensono has in its possession or its Affiliates or subcontractors have in their possession for such Software portion of the Developed D&B Material promptly (i) upon any reasonable request from D&B during the Term, and (ii) upon termination or expiration of this Agreement (or an applicable SOW hereunder).
(f)Embedded Ensono Material In Developed D&B Materials.  If Ensono, in connection with this Agreement or an SOW hereunder, intends to bundle,

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(g) embed, or otherwise include or append any Ensono Software or other Material owned by Ensono or a third party within or to any Developed D&B Materials (the foregoing in this sentence, collectively, “Embedded Ensono Material”), Ensono will provide D&B advance written notice and such written notice must include (i) a written description of any such Embedded Ensono Material and (ii) any third party terms that limit or qualify the license grant provided below.  Ensono hereby grants (or provides, in the case of third party Embedded Ensono Material subject to any third party limitations or qualifications disclosed in the written notice referenced above) the following to D&B, D&B’s Affiliates, and D&B’s third party service providers who receive such materials for the sole purpose of providing services to D&B: a worldwide, perpetual, non-exclusive, irrevocable, and paid-up license to Use and modify such Embedded Ensono Material solely in connection with D&B’s use of the associated Developed D&B Materials and only to the extent that the Embedded Ensono Material remains integrated into or appended to the Developed D&B Materials.  This license is transferable (i) among D&B and its Affiliates, and (ii) in connection with the assignment or transfer of this Agreement or the affected SOW.  This license includes Use or inclusion of Embedded Ensono Material in or in connection with any distribution, sublicense, derivative work, adaptation, modification, display, performance, or reproduction of any such Developed D&B Materials by or on behalf of D&B but only to the extent such Use or inclusion remains consistent with the purposes for which the Developed D&B Materials were provided.  This license does not include the right to reverse engineer, decompile, or disassemble the Embedded Ensono Material.  Upon (A) any reasonable request from D&B during the Term and (B) upon termination or expiration of this Agreement (or an applicable SOW hereunder), Ensono will ***.  When Ensono provides any such source code to D&B, the foregoing license shall be deemed *** the Embedded Ensono Material.  
		
	8.5
	Residual Knowledge.

Nothing contained in this Agreement shall restrict a party from the use of any general ideas, concepts, know-how, methodologies, processes, technologies, algorithms or techniques retained in the unaided mental impressions of such party’s personnel relating to the Services which either party, individually or jointly, develops or discloses under this Agreement, provided that in doing so such party does not breach its obligations under Article 16 or infringe the Intellectual Property Rights of the other party or third parties who have licensed or provided materials to the other party.  Except for the license rights contained in this Article 8, neither this Agreement nor any disclosure made hereunder grants any license to either party under Intellectual Property Rights of the other party.  This Section 8.5 shall survive termination or expiration of this Agreement.
		
	8.6
	Ensono’s Patents.

Ensono (on its own behalf and on behalf of its Affiliates) covenants not to assert against or sue D&B or its Affiliates (including Former Affiliates, without regard to how long they have been Former Affiliates, notwithstanding the twenty-four (24) month condition in the definition thereof) or any of their third party service providers during or at any time following the Term with respect to any claim for infringement of

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 any patent owned or exclusively licensed by Ensono or its Affiliates that relates to the Services or technology, processes or other Material used to provide the Services; provided, however, that (a) this Section 8.6 shall not limit Ensono’s right to sue third party service providers for use of patents for purposes other than providing services to D&B or its Affiliates; and (b) if Ensono notifies D&B of a specific patent or patents that is or are being infringed upon by D&B or its Affiliates as of the date of the notice, identifying with reasonable particularity the process or function being performed by or for D&B or its Affiliates which infringes such patent (the “Specific Patent Notice”), (i) thirty-six (36) months after D&B’s receipt of such Specific Patent Notice if the Specific Patent Notice is provided during the Term; and (ii) twenty-four (24) months after D&B’s receipt of such Specific Patent Notice if the Specific Patent Notice is provided after the Term, Ensono or its Affiliates may bring suit against D&B and/or its Affiliates or any of their third party service providers for any infringement of the patent which was the subject of the notice and which occurs following the expiration of the applicable time period (as provided in items (i)-(ii) above).  
8.7    Execution of Documents To Perfect D&B’s Intellectual Property Rights.
Upon D&B’s request, Ensono shall promptly sign, or secure any Ensono employee’s or Approved Subcontractor’s signature to, any lawful and reasonable document to which D&B is lawfully entitled under the express terms of this Agreement, to apply for or execute any application, assignment, or other instrument with respect to the perfection of D&B’s Intellectual Property Rights. 
8.8    Waiver of Moral Rights.
Except for items of intellectual property to which Ensono or its Affiliates are lawfully entitled to under the express terms of this Agreement, Ensono agrees on its own behalf, and on behalf of its and its Affiliates and Approved Subcontractor’s employees, not to assert any “moral rights,” “rights of integrity,” “rights of paternity,” or similar rights to object to or prevent modification of any intellectual property, or to insist upon being identified as the creator or author of any intellectual property.
8.9    Export.
The parties acknowledge that certain Software and technical data to be provided hereunder and certain transactions hereunder may be subject to export controls under Applicable Laws and Regulations.  Neither party shall export or re-export any such items or any direct product thereof or undertake any transaction in violation of any such laws or regulations.  To the extent within Ensono’s control, Ensono shall be responsible for, and shall coordinate and oversee, compliance with such export laws in respect of such items exported or imported hereunder.
8.10    Certain Manuals/Procedures.
In its performance of the Services, Ensono shall provide D&B (whether newly developed or derivative of Ensono Materials) certain manuals, training materials and other materials containing Ensono’s technical or operational procedures,

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 including the Procedures Manual, work flows, run books and the Change Control Procedure (the foregoing “Certain Manuals/Procedures”).  Ensono hereby grants to D&B (and designees thereof for the sole purpose of providing services to D&B) for no additional consideration a perpetual, irrevocable, worldwide, fully paid-up, nonexclusive license to Use such Certain Manuals/Procedures both during the Term and after the expiration or termination of this Agreement.
		
	9.
	FACILITIES

		
	9.1
	D&B Obligations.

D&B will provide to Ensono during the Term use of workspace in D&B’s facilities as provided in Schedule Q.  If necessary, SOWs hereunder shall identify any terms with respect to (i) D&B making available certain D&B facilities for use by Ensono in performing Services with respect to such SOW and (ii) Ensono’s use of such facilities.  D&B facilities shall be made available to Ensono on an “AS-IS” basis, with no warranties whatsoever. 
		
	9.2
	Ensono Obligations.

(a)Ensono shall use the D&B facilities in an efficient manner and in a manner that is coordinated, and does not interfere, with D&B’s other business operations.  Ensono shall be responsible for any damage to the D&B facilities resulting from the abuse, misuse, neglect, or gross negligence of Ensono or other failure to comply with its obligations respecting the D&B facilities.
(b)Upon notice from D&B, Ensono shall provide D&B with appropriate, limited access to D&B data repositories in which D&B Data is stored, for the purpose of determining data problems with respect to D&B Data.
		
	9.3
	Ensono Facilities.

(a)To the extent an SOW provides that Ensono shall use particular Ensono facilities (e.g., Ensono’s data center in Leeds, UK or in Conway, Arkansas, USA), Ensono shall use those particular Ensono facilities to provide the Services unless D&B approves the use of another Ensono location in advance and in writing.
(b)To the extent an SOW does not identify particular Ensono facilities to be used, Ensono may use its facilities located in the United States and the United Kingdom, as well as those facilities located in Poland to the extent authorized in the last sentence of this Section 9.3(b) (collectively, the “Approved Locations” and each an “Approved Location”), subject to the other terms of this Agreement (including this Section 9.3 and Sections 8.3(a) and 8.9 and Article 16.  Ensono’s facilities in Warsaw and Gdansk, Poland may be Approved Locations for SOW #9 and other specific SOWs, but only to the extent those specific SOWs expressly (A) designate the locations in Warsaw or Gdansk as Approved Locations and (B) list the specific functions that may be performed at the Approved Locations.

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(c)Prior to any Ensono-initiated relocation of any Services (including the material reallocation of the volume or nature of the work provided or processed) (i) from a facility identified in an SOW as the facility from which such Services are to be performed to another facility; or (ii) from any facility from which the Services are provided to a facility that is not an Approved Location for those particular Services, Ensono will seek D&B’s prior written approval, which may be granted or withheld in D&B’s reasonable discretion.  Ensono will manage any such approved relocations in accordance with this Agreement and a migration plan to be prepared by Ensono and approved by D&B.  Prior to seeking D&B’s approval of any such proposed relocation, Ensono will fully examine and evaluate the effects of the contemplated relocation on the Services and D&B, including the operational, technical, security, regulatory, and other effects, and will prepare and submit to D&B an analysis of the effects.  
(d)Ensono will have financial responsibility for all additional costs, taxes and other expenses reasonably incurred by D&B or its Affiliates related to any Ensono-initiated relocation of an operational facility from which the Services are provided.
		
	10.
	PERFORMANCE STANDARDS

		
	10.1
	General.

(a)Quantitative performance standards for certain of the Services (“Service Levels”) are set forth, if necessary, in the applicable SOW to this Agreement.  At all times Ensono’s level of performance shall be at least equal to the Service Levels.
(b)Except where a different level of performance is specifically agreed (such as where a specific Service Level is provided), Ensono shall perform the Services at least at the same level and with at least the same degree of accuracy, quality, timeliness, responsiveness, and efficiency as was provided during the twelve (12) months prior to the Effective Date by or for D&B and its Affiliates.
		
	10.2
	Failure to Perform.

(a)Each time Ensono fails to meet a Performance Standard, Ensono shall:
(i)investigate, assemble, and preserve pertinent information with respect to, and report on the causes of, the problem, including performing a root cause analysis of the problem(s);
(ii)advise D&B, as and to the extent requested by D&B, of the status of remedial efforts being undertaken with respect to such problem;
(iii)minimize the impact of and correct the problem(s) and begin meeting the Performance Standard; and 
(iv)and take appropriate preventive measures so that the problem does not recur.

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(b)Ensono recognizes that its failure to meet Critical Service Levels (as set forth in each SOW hereunder) may have a material adverse impact on the business and operations of D&B and that the damage from Ensono’s failure to meet a Critical Service Level is not susceptible of precise determination.  Accordingly, if Ensono fails to meet Critical Service Levels for reasons other than the wrongful actions of D&B, circumstances that constitute a Force Majeure Event, or circumstances described in the “Excused Performance” section of the applicable SOW then D&B shall be entitled to receive the Service Level Credits specified in each SOW hereunder.  Such Service Level Credits shall be D&B’s sole and exclusive monetary remedy for Ensono’s failure; provided that such remedy shall not be D&B’s sole and exclusive monetary remedy (i) with regard to any *** obligations of Ensono expressly provided in this Agreement or the relevant SOW, (ii) if the reason Ensono failed to achieve the Critical Service Level was within the scope of ***, (iii) for any month in which one or more Revenue Critical Services (as defined in Schedule B) is unavailable for *** or longer (as a result of one or multiple outages), (iv) for any month in which *** Severity 1 or Severity 2 incidents occur (including outages of any duration) involving one or a combination of multiple Revenue Critical Services, (v) if there is a delay of *** or more for batch processing of any system or component listed in Schedule F, (vi) if Service Level Credits that would be payable would have exceeded the Amount at Risk limit in any *** consecutive months; or (vii) if Service Levels Credits that would be payable would have exceeded the Amount at Risk limit in any *** months in a rolling *** period.  Failures to meet Service Levels that result from *** and/or that are described in items (iii) through (vi) above are individually and collectively referred to hereunder as “Chronic or Extreme Service Level Failures”.  This Section 10.2(b) shall not limit D&B’s rights with respect to the events upon which D&B may rely as a basis for D&B’s termination of this Agreement for cause, which are in addition to, and not a substitution for, such provisions.
(c)With respect to the Service Levels provided in an SOW, *** percent (***%) of Ensono’s aggregate monthly At Risk Charges under the applicable SOW (as defined in Section 10.2(d) below) shall be at risk each month for Service Level Credits (the “Amount at Risk”).  D&B may allocate *** percentage points among Critical Service Levels in the applicable SOW hereunder, for the purpose of calculating Service Level Credits; provided, however, that D&B may not allocate more than *** percentage points to any single Critical Service Level.  For example, if Ensono fails to meet a Critical Service Level to which D&B has allocated *** percentage points, the applicable Service Level Credit will equal *** of the Amount at Risk, for the month in which the failure occurred.
(d)“At Risk Charges” as specified for each SOW shall mean the Charges provided in such SOW (but without deduction for any Service Level Credits).  The term “At Risk Charges” does not include (i) Pass-Through Expenses, (ii) Out-Of-Pocket Expenses, or (iii) taxes.  Ensono proposals for any New Services that would be ongoing during the Term (and Change Orders or SOWs implementing such new Services) shall not include assumptions or conditions excepting the proposed charges (which would become Charges pursuant to an SOW) for such proposed New Services from any ultimate At Risk Charges.

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	10.3
	User Satisfaction.

Ensono and D&B will conduct a survey at agreed-to intervals (not less than annually) of an agreed upon percentage of the D&B user community.  The surveys shall be designed to determine the level of user satisfaction and areas where user satisfaction can be improved.  Such surveys shall include representative samples of each major category of user of the Services within D&B.  Ensono and D&B will mutually agree on the form and content of the surveys, which shall be no less thorough than Ensono’s customary user satisfaction program.  The parties will jointly review the results of the surveys, and Ensono will develop and implement a plan to improve user satisfaction in areas where user satisfaction is low.  D&B’s satisfaction shall be an element of Ensono employees’ personnel measurements and a key factor in determining business unit success.  Such factors shall comprise a significant percentage of the variable incentive compensation pay of each individual holding a Key Ensono Position.
		
	10.4
	Periodic Reviews.

As more fully described in Schedule B, at least annually the parties shall review the Service Levels and shall make adjustments to them as appropriate to reflect improved performance capabilities associated with advances in the technology and methods used to perform the Services.  The parties expect and understand that the Service Levels will be improved over time.
		
	10.5
	Measurement and Monitoring Tools.

Ensono shall utilize the necessary measurement and monitoring tools and procedures required to measure and report Ensono’s performance of the Services against the applicable Service Levels.  Such measurement and monitoring shall permit reporting at a level of detail sufficient to verify compliance with the Service Levels, and shall be subject to audit by D&B.  Ensono shall provide D&B with access to Service Level performance data, and during the Term, Ensono shall implement (and provide for D&B’s use) functionality allowing D&B the ability to monitor Service Level performance via on-line access to monthly reports. 

		
	11.
	PROJECT AND CONTRACT MANAGEMENT

		
	11.1
	Steering Committee.

The parties shall form a steering committee to facilitate communications between them (the “Steering Committee”).  The Steering Committee shall be initially composed of (i) D&B’s Chief Content and Technology Officer and Chief Technology Officer or their designees; (ii) the Ensono Account Executive and the Ensono Delivery Director, or their designees; and (iii) such other persons as may be mutually agreed by the parties.  D&B and Ensono may substitute other individuals, either temporarily due to the unavailability of a designated individual or permanently.

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	11.2
	Reports and Meetings.

(a)Reports.  With respect to each SOW, Ensono shall provide the reports indicated in the applicable SOW, at the frequency indicated therein.  Ensono shall provide D&B with suggested formats for such reports for D&B’s review and approval.  As specified in the applicable SOW, Ensono shall provide D&B the capability to (A) remotely access reports (both management and operational reports) online; (B) access all supporting information for reports (which shall be the property of D&B); and (C) manipulate such reports and supporting information and generate new reports.  In addition, Ensono shall offer to D&B those reports that Ensono then-currently makes generally available to its customers.
(b)Meetings.  The parties shall hold joint meetings between representatives of D&B and Ensono as described below and as set forth in each SOWs.  As applicable, an SOW shall indicate the meetings and frequency of meetings to be held between representatives of the parties with respect to the subject matter of such SOW.  Ensono shall prepare and circulate an agenda sufficiently in advance of each such meeting to give participants an opportunity to prepare for the meeting.  Ensono shall incorporate into such agenda items that D&B desires to discuss.  At D&B’s request, Ensono shall prepare and circulate minutes promptly after a meeting, although D&B shall not be bound thereto and D&B shall not be obligated to correct or object to any errors therein.  Such meetings shall include the following:
(i)a weekly meeting of the D&B Contract Executive and the Ensono Delivery Director to discuss day-to-day operations and such other matters as appropriate;
(ii)a monthly meeting among operational personnel representing D&B and Ensono to discuss the Monthly Performance Report, daily performance, planned or anticipated activities and changes that might adversely affect performance, and otherwise to address, review and discuss matters specific to D&B;
(iii)a quarterly management meeting of the Steering Committee to review the reports for the quarter, review Ensono’s overall performance under this Agreement, review progress on the resolution of issues, provide a strategic outlook for D&B’s IT requirements, and discuss such other matters as appropriate;
(iv)an annual senior management meeting by the parties to review relevant contract and performance issues; and such other meetings between D&B representatives and Ensono Personnel reasonably requested by either party as necessary to address performance of the Services.
		
	11.3
	Procedures Manual.

(a)An SOW may specify that Ensono shall develop, establish, maintain, and comply with a procedure manual (the “Procedures Manual”) for the Services provided under such SOW.  D&B’s rights to use such Procedures Manual are

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 as provided in Section 8.10 above.  The Procedures Manual shall be suitable for use by D&B to understand the Services under the applicable SOW and shall describe:
(i)how Ensono shall perform and deliver the Services under the applicable SOW;
(ii)the Equipment and Software being used, and the documentation (e.g., operations manuals, user guides, specifications) which provides further details of such activities;
(iii)the activities Ensono proposes to undertake in order to provide the Services, including those direction, supervision, monitoring, staffing, reporting, planning and oversight activities normally undertaken to provide services of the type Ensono is to provide hereunder;
(iv)descriptions of the acceptance testing and quality assurance procedures approved by D&B; and
(v)Ensono’s problem management and escalation procedures, and the other standards and procedures of Ensono pertinent to D&B’s interaction with Ensono in obtaining the Services.
(b)Ensono shall periodically update each Procedures Manual to reflect changes in the operations or procedures described therein.  Updates of the Procedures Manuals shall be provided to D&B for review, comment, and approval.  Ensono shall perform the Services in accordance with the Procedures Manuals.  The Procedures Manuals shall not be used to amend this Agreement.  If there is a conflict between the provisions of this Agreement and the Procedures Manual, the provisions of this Agreement shall control.
		
	11.4
	Change Control.

(a)The responsibility for establishing the performance standards and strategic direction of D&B shall at all times remain with D&B.  Ensono, in performing the Services, shall conform to and shall support such performance standards and strategic direction (including those performance standards included within each SOW).
(b)Ensono shall comply with the following change control requirements:
(i)Prior to using any new Software or new Equipment to provide the Services, Ensono shall have verified that the item (A) is consistent with (1) the performance standards provided in Schedule B and provided within each SOW, and (2) the strategic direction specified by D&B, (B) has been properly installed, (C) is operating in accordance with its specifications, and (D) is performing its intended functions in a reliable manner.  In all circumstances the ability to restore to prior operational capabilities shall be maintained.

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(ii)Ensono shall not make the following changes to the Services or the resources or environment used to provide or receive the Services, including implementing a change in technology, without first obtaining D&B’s approval, which approval D&B may withhold in its discretion:
(A)a change adversely affecting the function or performance of, or decreasing to any significant degree the resource efficiency of, the Services;
(B)a change increasing D&B’s Charges, or other costs or fees of (or to) D&B; or
(C)a change inconsistent with the performance standards or strategic direction specified by D&B; or a change impacting the way in which D&B conducts its business or operations, which impact D&B considers to be adverse.
(iii)Ensono may make temporary changes required by an emergency if it has been unable to contact an appropriate D&B manager to obtain such approval after making reasonable efforts.  Ensono shall document and promptly report such emergency changes to D&B, which changes shall then be subject to D&B’s approval hereunder.
(iv)Ensono shall move programs from development and test environments to production environments in a controlled and documented manner, so that no changes are introduced into the programs during such activity, and with the full capability of restoring to the prior state until the programs have been established as fully operational.
(c)Schedule A to each SOW shall include the parties’ approved change control procedure (the “Change Control Procedure”) detailing how Ensono will control changes to D&B’s IT environment pertaining to the Services.  The parties may agree to further more detailed and technical procedures for implementing changes, provided that such further procedures comply with the Change Control Procedure.  The Change Control Procedure shall not be used to amend this Agreement (or any SOW hereunder).  If there is a conflict between the provisions of this Agreement (or any SOW hereunder) and the Change Control Procedure, the provisions of this Agreement (or such SOW) shall control.
(d)Each time that Ensono makes a change in the operating environment (a “System Change”) that (individually or cumulatively with prior changes) results in a material increase in the amount of Charges due under any SOW, Ensono shall perform a benchmark comparison, at a reasonable and mutually agreed upon level of detail, between the amount of billable Resource Units or other chargeable resources pursuant to an SOW required to perform a representative sample of the processing affected by such change being performed for D&B (i) immediately prior to the System Change and (ii) immediately after the System Change.

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(e)D&B shall be required to pay for increased resource usage due to a System Change only:
(i)if D&B requests the System Change or has provided informed consent for such System Change (i.e., specifically recognizing in such consent that it might result in increased Charges), or
(ii)such System Change is required by this Agreement, or such increased resource usage is caused by D&B’s increased or changed requirements.
(f)If following a System Change Ensono contends that D&B should be required to pay for increased resource usage, D&B shall be required to pay for increased usage only as and to the extent that Ensono is able to demonstrate that increased usage is due to one of the conditions set forth in the first sentence of this paragraph.
		
	11.5
	Use of Subcontractors and Other Support.

(a)Subject to Section 11.5(c), except as and to the extent D&B may agree otherwise in writing, Ensono may subcontract its obligations under any SOW only in accordance with the following:
(i)The agreed upon subcontractors of Ensono, if any, shall be listed in Schedule E of the applicable SOW for the particular scope of the efforts described therein.
(ii)Prior to entering into any subcontract with a third party, Ensono shall give D&B reasonable prior notice specifying the components of the Services affected, the scope of the proposed subcontract, and the identity and qualifications of the proposed subcontractor.  At D&B’s request, Ensono shall forward to D&B a description of the scope and material terms (other than financial) of the subcontract or proposed subcontract.  D&B may approve or disapprove of proposed subcontractors, such approval not to be unreasonably withheld (except in the case of D&B Competitors, in which case D&B may withhold its approval in its sole discretion).
(iii)If any subcontractor is approved (as provided in this Section 11.5(a)) to provide Services pursuant to an SOW, then such SOW shall list the subcontractor, including the firm name, a description of the work to be subcontracted, and information about such subcontractor’s qualifications.
(b)D&B may revoke its approval of a subcontractor and direct Ensono to replace such subcontractor if the subcontractor (i) breaches obligations or performance requirements pursuant to this Agreement, (ii) commits material misconduct or wrongdoing, or (iii) is responsible for failures to meet Performance Standards pursuant to this Agreement.  Approval of a subcontractor that at the time of approval is a Majority-Owned Affiliate of Ensono shall be automatically revoked if

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 such subcontractor becomes a D&B Competitor or a Majority-Owned Affiliate of a D&B Competitor.
(c)Ensono may, without D&B’s approval and without the necessity of providing notice to D&B as provided in Section 11.5(a)(i), in the ordinary course of business, subcontract for third party services or products that are not dedicated to D&B or that are not material to a particular function constituting a substantial part of the Services, and that, in either case, do not result in a material change in the way Ensono conducts its business, provided such subcontract does not adversely affect D&B, whether in performance of or Charges for the Services or otherwise.  If D&B expresses concerns to Ensono about a subcontract covered by this Section 11.5(c), Ensono shall discuss such concerns with D&B and work in good faith to resolve D&B’s concerns on a mutually acceptable basis.
(d)Ensono shall remain responsible for obligations, services, and functions performed by subcontractors to the same extent as if such obligations, services, and functions were performed by Ensono employees, and for purposes of this Agreement and any applicable SOW: (i) such work shall be deemed work performed by Ensono’s employees; and (ii) references to a “party” shall include Ensono’s subcontractors (e.g., for liability purposes, as provided in Section 20.2(c)(v) of this Agreement).  Ensono shall ensure that its contracts with each subcontractor substantially comply with all confidentiality, regulatory, and similar obligations of Ensono, such as GLB and Privacy Shield.  Even if there is no breach of the underlying obligation in the previous sentence, a failure to obtain such contractual “substantial compliance” from a subcontractor with access to D&B Confidential Information or D&B Data shall be a material breach of this Agreement.  Ensono shall be D&B’s sole point of contact regarding the Services, including with respect to payment.  Ensono shall not disclose D&B Confidential Information to a subcontractor unless and until such subcontractor has agreed in writing to protect the confidentiality of such Confidential Information in a manner substantially equivalent to that required of Ensono under this Agreement.
(e)To the extent subcontractors, agents, representatives and other entities perform, or otherwise provide support to Ensono related to, the Services, Ensono shall cause such entities to substantially comply with the obligations and restrictions applicable to Ensono under this Agreement, and Ensono shall disclose D&B Confidential Information to subcontractors only on a need-to-know basis.
		
	11.6
	Technology Plan.

Each year during the Term, Ensono shall prepare (in collaboration with D&B) an annual technology plan in accordance with the provisions of this Section 11.6 and subject to Section 11.4(a) (the “Technology Plan”).  For clarification, if the Technology Plan recommends modification to D&B equipment, software and/or technology assets, the express written approval of D&B shall be required before Ensono implements any such recommendations.  Each Technology Plan after the first shall review and assess the immediately preceding Technology Plan.  The Technology

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 Plan shall consist of a three-year plan and an annual implementation plan as described below.
(a)Three-Year Plan.  The Technology Plan shall focus on the then-next three (3) year time-frame for provision of such products and services to D&B, and shall include an assessment of the appropriate direction for such systems and services in light of D&B’s business priorities and strategies and competitive market forces (to the extent such business information is provided by D&B to Ensono).  The Technology Plan shall include a specific identification of proposed software and hardware strategies and direction, a cost projection, a cost/benefit analysis of any proposed changes, a description of the types of personnel skills and abilities needed to respond to any recommended changes or upgrades in technology, a general plan and a projected time schedule for developing and achieving the recommended elements, and references to appropriate information services operations platforms that support service level requirements, exploit industry trends in production capabilities and provide potential price performance improvement opportunities.  
(b)Annual Implementation Plan.  As necessary to support the overall objectives and directions of the three-year plan, the annual implementation plan shall provide specific guidance as to the information services requirements, projects and plans for the upcoming year, including details on operations, maintenance backlog and development activities.  The annual implementation plan shall include a summary review of Ensono’s performance of the Services in the year then concluding, and shall provide updates and revisions of the long-term plan as appropriate.  An annual implementation plan shall be prepared for each year of this Agreement.  As part of the process for preparing the annual implementation plan, the parties shall review the overall operation of this Agreement to ensure that the Services continue to meet D&B’s strategic IT requirements.
(c)Drafting Responsibility.  Ensono shall submit to D&B a draft of each Technology Plan for D&B’s review and approval (subject to the last sentence of this Section 11.6(c)), which draft shall have been developed with input from key business users of D&B.  Ensono shall submit the final Technology Plan within fifteen (15) days after receiving D&B’s comments.  With respect to D&B’s review and approval of each Technology Plan, D&B shall have the right to review the entirety of each draft of the Technology Plan, and D&B shall have the right to approve only those portions of the Technology Plan that describe changes (including proposed changes) that (i) would require D&B to invest in additional equipment, software and/or technology assets, and/or (ii) could adversely impact (A) the Services or (B) D&B equipment, software and/or technology assets that interact with Ensono’s infrastructure.
(d)Technology Plan Timing and Update.  The schedule for developing and delivering each Technology Plan shall be coordinated to support D&B’s annual business planning cycle and the annual senior management meeting described in Section 11.2(b)(iv).  Ensono shall recommend modifications to the Technology Plan as it deems appropriate, and shall revise the Technology Plan as requested or approved by D&B.

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	11.7
	Quality Assurance and Improvement Programs.

As part of its total quality management process, Ensono shall provide continuous quality assurance and quality improvement through: (a) the identification and application of proven techniques and tools from other installations within its operations (i.e., “Best Practices”); and (b) the implementation of concrete programs, practices and measures designed to improve Performance Standards.  Such procedures shall include checkpoint reviews, testing, acceptance, and other procedures for D&B to confirm the quality of Ensono’s performance, and shall be included in the Procedures Manual.  Ensono shall utilize project management tools, including productivity aids and project management systems, as appropriate in performing the Services.
		
	11.8
	Coordination of Additional Marketing to D&B.

Ensono shall coordinate all marketing efforts for expansion of the Services (including any proposed New Services) to D&B and its Affiliates with, and comply with the rules of engagement provided from time to time by, the D&B Contract Executive.
		
	11.9
	Cooperation With D&B Third Parties.

Ensono shall cooperate fully with D&B or with any third party appointed or engaged by D&B to the extent that such cooperation may be necessary to permit D&B or such third party to complete its work (including to the extent such D&B or third party work is related to or impacted by the Services).
		
	11.10
	Public Cloud Services.

(a)D&B is responsible for all Public Cloud Services ordered via the Public Cloud Services provider site through Ensono’s account.  D&B and agrees to pay for such Public Cloud Services as invoiced by Ensono in accordance with the terms of this Agreement.  Notwithstanding anything to the contrary set forth in this Agreement, with respect to the Public Cloud Services only (and expressly excluding any Ensono Services delivered in connection therewith), except to the extent caused by Ensono or Ensono’s failure to perform a portion of the Services for which Ensono is responsible pursuant to Schedule A and Exhibit A-9, Ensono shall have no liability or responsibility whatsoever for any service quality or performance deficiency or failure of any kind.  In addition, given that D&B can self-provision and self-configure the Public Cloud Services and the D&B environment in such Public Cloud Services in ways that may reduce D&B security, Ensono shall have no responsibility for any security failure or breach to the extent caused by any such self-provisioning or self-configuration (unless resulting from Ensono failure to perform a portion of the Services for which Ensono is responsible pursuant to Schedule A and Exhibit A-9). 
(b)Unless (and then only to the extent) that D&B and Amazon Web Services, Inc. (“AWS”) agree that different terms shall apply to D&B’s acquisition of AWS Public Cloud services thru resellers (including Ensono), the AWS Terms attached 

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as Schedule M shall be applicable to any AWS Services sold by Ensono to D&B hereunder and constitute a separate agreement between D&B and AWS. 
		
	11.11
	***.

***.  
		
	12.
	AUDITS; RECORDS RETENTION

		
	12.1
	Audit Rights.

(a)Ensono shall maintain a complete audit trail of all financial and non-financial transactions resulting from this Agreement.  Ensono shall provide to D&B, its auditors (including internal audit staff and external auditors), inspectors, regulators, customers and other representatives as D&B may from time to time designate in writing, access at all reasonable times (and in the case of regulators at any time required by such regulators) to any facility or part of a facility at which either Ensono or any of its subcontractors is providing the Services, to Ensono Personnel, and to data and records relating to the Services for the purpose of performing audits and inspections of either Ensono or any of its subcontractors during the Term and for the period Ensono is required to maintain records hereunder to:
(i)verify the accuracy of charges hereunder (including the Charges) and invoices;
(ii)verify the integrity of D&B Data and examine the systems that process, store, support and transmit that data; and examine Ensono’s performance of the Services and conformance to the terms of this Agreement including, to the extent applicable to the Services and to the charges hereunder (including the Charges) therefor, by performing audits:
(A)of practices and procedures;
(B)of systems, Equipment and Software;
(C)of supporting information and calculations regarding compliance with Performance Standards;
(D)of general controls, including those related to information privacy and security practices and procedures;
(E)of disaster recovery and back-up procedures; and as necessary to enable D&B to meet, or to confirm that Ensono is meeting, applicable regulatory and other legal requirements.
(b)Ensono shall provide to such auditors, inspectors, regulators, and other representatives such assistance as they request, including installing and operating audit software on those systems and solutions that are solely dedicated to D&B.  Ensono shall cooperate fully with D&B or its designees in connection with audit

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functions and with regard to examinations by regulatory authorities.  D&B’s auditors and other representatives shall comply with Ensono’s standard and customary security requirements, and D&B’s auditors shall execute with Ensono a nondisclosure agreement in a form substantially similar to that in Schedule J.
(c)Ensono shall conduct audits of or pertaining to the Services in such manner and at such times as is consistent with the audit practices of well managed operations performing services similar to the Services.  Ensono shall perform a security audit (of a scope and type mutually agreed to by the parties) at least annually and (unless such an audit is otherwise provided for in an SOW), D&B shall reimburse Ensono for the reasonable costs associated with the annual security audit.
(d)Ensono’s obligations with respect to this Section 12.1 are subject to the following:
(i)Except as otherwise provided in Section 12.1(c) with regard to the annual security audit, *** each Contract Year supporting up to *** D&B audits (designated among all the D&B audits that Contract Year) shall be provided by Ensono at no-charge to D&B; provided that D&B shall be entitled to perform additional audits so long as D&B pays certain Ensono costs relating to such audits as described in Section 12.1(d)(ii) below.  Notwithstanding the previous sentence, “privacy and security walk-throughs” of Ensono premises shall not be considered chargeable “audits” and shall not count against the *** and *** allocation described in the previous sentence, and Ensono agrees that it will cooperate with and provide such privacy and security walk-throughs D&B during the Term at no charge including providing reasonable opportunity for D&B to inspect Ensono facilities directly involved with processing of D&B PII and interview responsible Ensono Personnel concerning specific aspects of logical and physical security at the inspected facility as they related to the processing of D&B PII.  
(ii)With regard to additional audits during a calendar year (after the first *** D&B audits during such calendar year, subject to the ***), if Ensono’s provision of cooperation and support for any audit will cause Ensono to expend additional resources that it otherwise would not spend in the normal course of providing the Services, Ensono will notify D&B of such requirement for additional resources.  Upon D&B’s authorization, Ensono will provide such assistance, and D&B will be charged at the T&M Rates provided in Schedule C for person hours expended by Ensono Personnel in providing such cooperation and assistance specifically requested by D&B in connection with such additional audits.  Notwithstanding the previous sentence, there shall be no additional charge to D&B for any cooperation and assistance provided by any Ensono Personnel who fills a Key Ensono Position.  Except as provided in Section 12.1(c) and in this Section 12.1(d)(ii), there shall be no additional charge to D&B for cooperation and assistance provided by Ensono in connection with audits.
(iii)Any third party auditors, inspectors, and other such representatives utilized by D&B in the performance of audits may not be Ensono Competitors.

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(iv)D&B shall provide Ensono reasonable advance notice (not less than two (2) weeks) of any audit; provided that advance notice shall not be required: (A) in the case of suspected fraud or unlawful activity; (B) in the case of regulatory audits, if such regulators do not provide D&B advance notice but require an immediate audit (and D&B notifies Ensono of such in a timely manner); or (C) if D&B has opted to have Ensono provide a dedicated resource (which shall be chargeable to D&B).
(v)Audits shall be designed not to (A) interfere with Ensono’s ability to perform the Services in accordance with the Service Levels, unless D&B provides Ensono with appropriate relief from meeting the affected Service Levels, or (B) disrupt Ensono’s performance of services for other Ensono customers.
(vi)Ensono shall present D&B with a plan pursuant which Ensono shall achieve ISO 27001 and ISO 27002 certification.  Ensono shall use Commercially Reasonable Efforts to achieve such certification in accordance with such plan. 
		
	12.2
	SSAE 16 Audit.

(a)In addition to the audits provided in Section 12.1 and audits that may be required in any SOW to this Agreement, Ensono will cause to be conducted an annual third party audit of its data center operations in the United States that are utilized in providing the Services.  Ensono’s management will provide such auditors with such management attestations as such auditors may require.  The audit described in this Section for the United States data center operations will be conducted by a national major auditing firm, in conformance with the requirements for SOC 1 Type II audits under American Institute of Certified Public Accountants’ SSAE 16 standards (“SSAE 16”), or any successor or substitute statement adopted by such or as otherwise agreed to by the parties, and its scope will include the physical and environmental processes and internal controls maintained by Ensono in the data centers used to provide the Services. 
(b)If D&B requests a SSAE 16 or similar audit of Ensono’s data center operations outside the United States, the parties will document the scope and associated third party charges for such audit through the Change Control Procedure.  If Ensono desires to use or disclose the audit for any internal purpose or for any third party, it shall first obtain D&B’s prior written approval, which approval D&B will not unreasonably withhold if the parties are able to agree upon an equitable pro-ration of the costs for such audit between D&B and Ensono.
(c)Promptly after completion of each SSAE 16 audit (or comparable audit), Ensono will provide D&B with a copy of the audit report.  In addition, Ensono will promptly correct any concerns or weaknesses expressed in the audit report and will provide a summary report promptly to D&B of those responses and Ensono’s success in correcting those concerns or weaknesses.
(d)If D&B requests that a SSAE 16 audit be performed by Ensono at a time that is different than as provided by Ensono pursuant to its regular auditing 

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and reporting cycle, Ensono shall deliver to D&B a written certification from a knowledgeable financial executive of Ensono that: (i) contains a written representation that Ensono’s internal controls as represented in the most recent SSAE 16 audit report remain in all material respects unchanged through the date of the letter; or (ii) identifies all material changes in Ensono’s internal controls (including any newly implemented internal controls) since the most recent SSAE 16 audit report (and the reasons such changes were made).  If D&B’s auditors have any questions with respect to the information provided in such written certification, D&B will direct such questions to the Ensono Delivery Director, who will forward such questions in a timely manner to the Ensono personnel who provided the information contained in such written certification.  Ensono will respond to such questions in a timely manner.  D&B will be responsible for additional Out-of-Pocket Expenses that may be incurred by Ensono in its provision of cooperation and support with respect to such written certification (which shall include the costs on an Out-of-Pocket Expenses basis, if any, of the auditor).
		
	12.3
	Sarbanes Oxley Compliance.

(a)D&B and its Affiliates may be subject to additional financial reporting and legal requirements imposed upon publicly traded companies.  Among these legal requirements are those imposed by Section 404 of the Sarbanes Oxley Act of 2002, as the same may be amended from time to time, which requires management to evaluate and certify as to the maintenance of adequate internal controls over financial reporting.  Accordingly, Ensono agrees to abide by such D&B internal control procedures as D&B may, from time to time, maintain in effect with respect to the Services provided hereunder (including pursuant to SOWs hereunder), provided that (i) D&B shall give reasonable prior notice to Ensono of such procedures, and any changes therein; and (ii) Ensono shall have the ability, or can reasonably gain the ability, to comply with such procedures if and as so changed; provided further, that: (A) any changes to the Services necessary to comply with such internal control procedures shall be implemented pursuant to the Change Control Procedure, and (B) Ensono shall be permitted to charge D&B for any such changes only to the extent that a change is in addition to activities Ensono provides for itself or other Ensono customers.
(b)Failure by Ensono to adequately conduct itself in accordance with such applicable internal control procedures, where such failure is material to D&B’s maintenance of adequate internal controls over financial reporting in areas being benefited by the Services, shall be grounds for D&B declaring a material breach by Ensono of its performance under this Agreement.
		
	12.4
	Audit Follow-up.

(a)Following an audit or examination, D&B may conduct, or request its external auditors or examiners to conduct, an exit conference with Ensono to obtain factual concurrence with issues identified in the review.

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(b)Whether or not resulting from an audit and subject to any reasonable restriction placed on Ensono by any law enforcement agency in the process of conducting an investigation, Ensono will notify D&B promptly if Ensono becomes aware of any security and/or privacy threat that specifically affects D&B Data, D&B’s clients, or the D&B environment at Ensono.  Security releases, updates and patches of Ensono Software shall not be considered responses to security threats “specific to” D&B.
(c)Ensono and D&B shall promptly meet to review each audit report provided to (or performed by) D&B hereunder, after the issuance of such report, in order to mutually agree upon the appropriate manner, if any, in which to respond to the changes suggested by the audit report.  D&B and Ensono agree to develop operating procedures for the sharing of audit and regulatory findings and reports related to Ensono’s operating practices and procedures produced by auditors or regulators of either party.
		
	12.5
	Records Retention.

(a)Subject to Section 12.5(c), Ensono shall maintain and provide access upon request to the records, documents and other information required to meet D&B’s audit rights under this Agreement, until the latest of:
(i)seven (7) years after the creation of such record, document, or information; and
(ii)all pending matters relating to this Agreement (e.g., disputes) are closed; or the information is no longer required for either party to comply with Applicable Laws and Regulations.
(b)After such time period as provided above, Ensono shall be permitted to destroy or otherwise dispose of any such information, unless D&B has notified Ensono in writing that D&B has elected to retain such information.  If D&B so elects to retain any such information, Ensono shall recover such information (as necessary) and deliver such information to D&B, with D&B reimbursing Ensono for Ensono’s Out-of-Pocket Expenses.
(c)Upon expiration or termination of this Agreement, or at any time upon D&B’s request, Ensono, its employees, agents, subcontractors and any authorized third parties shall, upon notice, promptly use Commercially Reasonable Efforts to return to D&B and/or destroy all originals and copies of PII in any media including, without limitation, recordings, electronic or hard copy format, in accordance with the requirements of this Agreement and applicable privacy laws and regulations; provided, however, that Ensono shall be permitted to retain backup tapes (which may include PII) for compliance purposes, and with regard to such backup tapes, Ensono shall not access the information on such tapes absent prior consent from D&B or pursuant to an administrative or judicial order.  Promptly after such return or destruction of data at D&B’s written request, Ensono shall send D&B a written certification signed by an officer of Ensono that acknowledges that, except for those backup tapes needed by Ensono for compliance purposes (if any), all PII

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 identified by Ensono using such Commercially Reasonable Efforts has been properly and securely returned or destroyed.
		
	12.6
	Overcharges.

(a)If as a result of an audit or otherwise it is determined that Ensono has overcharged D&B Ensono shall credit D&B’s account (or, at D&B’s option, pay D&B directly) an amount equal to the overcharge plus interest at the lesser of (i) one percent (1%) per month or (ii) the highest rate allowed by applicable law, which interest shall apply from the date the overcharge was paid by D&B.
(b)Provided (i) that D&B first requests Ensono to conduct a review of its billings prior to the applicable audit; and (ii) that the audit is not performed on a contingency fee basis; if an audit discloses that Ensono’s overcharges exceeded *** percent of the Charges during the period audited, Ensono shall also reimburse D&B for the reasonable cost of the audit.
		
	13.
	D&B RESPONSIBILITIES

		
	13.1
	Responsibilities.

D&B’s responsibilities with respect to the Services will be limited to those expressly set forth in this Agreement or in an applicable SOW.  In addition to D&B’s responsibilities expressly set forth elsewhere in this Agreement (including Schedule A of the relevant SOW), D&B shall be responsible for the following:
(a)D&B shall designate one (1) individual to whom Ensono may address overall contractual and relationship questions and communications concerning this Agreement (the “D&B Contract Executive”).  Additionally, in each SOW, D&B shall designate one (1) individual to whom Ensono may address operational communications concerning the Services provided pursuant to such SOW (the “D&B SOW Executive”).  The D&B Contract Executive and the D&B SOW Executive may be the same person.
(b)D&B shall cooperate with Ensono, including by making available management decisions, information, approvals and acceptances, as reasonably requested by Ensono so that Ensono may accomplish its obligations and responsibilities hereunder.
(i)The D&B Contract Executive or such person’s designee will be the principal point of contact for obtaining such decisions, information, approvals, and acceptances with respect to the main body of this Agreement.  Only personnel as expressly so designated by the D&B Contract Executive will be authorized to make commitments on the part of D&B that amend this Agreement or commit to acquire Resource Units (subject to Section 13.1(b)(ii) below).  To the extent Ensono relies on the apparent authority of other it does so at its own risk and without obligation on D&B’s part.

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(ii)The D&B SOW Executive or such person’s designee will be the principal point of contact for obtaining such decisions, information, approvals, and acceptances with respect to such SOW.  Only personnel as expressly so designated by the D&B Contract Executive or the D&B SOW Executive will be authorized to make commitments on the part of D&B that amend such SOW.  To the extent Ensono relies on the apparent authority of other it does so at its own risk and without obligation on D&B’s part.
Collectively, such D&B responsibilities are referred to in this Agreement as the “Retained Responsibilities”.
		
	13.2
	Savings Clause.

(a)Due to the material adverse impact termination or suspension of performance of the Services under this Agreement or an SOW would have on D&B’s business, ***.
(b)Ensono acknowledges that ***.  
(c)Ensono’s nonperformance of its obligations under this Agreement or any SOW shall be excused if and to the extent (i) Ensono’s nonperformance results from D&B’s failure to perform its responsibilities under this Agreement; and (ii) Ensono provides D&B with reasonable notice of such nonperformance and (if requested by D&B) uses Commercially Reasonable Efforts to perform notwithstanding D&B’s failure to perform (with D&B being responsible to reimburse Ensono for its additional Out-of-Pocket Expenses and incremental personnel efforts (at the T&M Rates)).
		
	14.
	CHARGES

		
	14.1
	General.

(a)All amounts Ensono may charge for the Services are set forth in this Article 14, Sections 12.1(d), 13.2, 16.5, 19.5, 23.8, 23.10 and 24.7, the provisions relating to Termination for Convenience Charges  (and amounts based on percentages of the Termination for Convenience Charges, and the Charges portions of each SOW hereunder (including its Schedule C).  Ensono shall not have the right to charge, and D&B shall not be required to pay to Ensono, any amounts for the Services other than or in addition to those payable to Ensono under this Article 14, the sections and SOWs referenced above, or Schedule C.  In determining what charges are payable under this Agreement, the structure and amount of D&B’s charges to its customers is not relevant.  In no event will information or changes in circumstances discovered after the Effective Date regarding D&B’s operations of any kind serve as the basis for Ensono to adjust the Charges or terms of this Agreement or any of the Schedules, ***. 
(b)The Charges, the T&M Rates provided in Schedule C, any development charges provided in Schedule C or SOWs hereunder, the other charges described in the Charges portion of each SOW hereunder, and the charging

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 methodology provided therein shall fully compensate Ensono for providing the Services.  If a portion of the Service is not measured by a specific Resource Unit or other chargeable resource, the cost to Ensono of providing that portion of the Service is subsumed in the charging methodology hereunder and there shall be no separate charge for variations in volumes of portions of the Services not measured by a Resource Unit or other chargeable resource; provided that any mutually agreed Services in an SOW shall be charged as agreed by the parties.  Notwithstanding any provision in Schedule C to the contrary, Ensono will not be permitted to decline to make investments required to provide the Services and/or to maintain Performance Standards on the basis that there is insufficient time left in the then current SOW Term for Ensono to recoup the required investment, ***.
		
	14.2
	Annual Minimum Charges.

(a)Subject to Section 14.3, each calendar year during the Initial Term the Adjusted Charges shall be subject to the Annual Minimum Charges provided in Schedule N (the “Annual Minimum Charges”).  If there is a shortfall (a “Annual Minimum Charges Shortfall”), Ensono shall notify D&B within sixty (60) days of the end of the relevant year (time being of the essence, if not billed during such period the Annual Minimum Charges Shortfall shall be waived) and invoice D&B for the amount of the Annual Minimum Charges Shortfall.  
(b)The “Adjusted Charges” shall be:
(i)The actual Charges for Services provided (including amounts for 12 Month Rule Charges but not including Pass-Through Expenses, Out-Of-Pocket Expenses, or taxes); plus
(ii)With regard to any Substitute Services the difference between the Charge for the Substituted Service and the Charge for the Substitute Service as of the date that the substitution occurred, as documented by the parties at the time.  Such credit shall recur annually, so long as D&B continues to use the Substitute Services (or a substitute for such Substitute Service).  By way of example, if the annual Charge for a Service that was being substituted was $10,000 and D&B switches to a Substitute Service that is $8,000 a year, then the $2,000 difference shall be credited in the year of substitution (appropriately pro-rated) and the full amount shall be credited in all following years of the Initial Term.  The aggregate amount of such credits is referred to as “Imputed Substitute Services Charges”.  Ensono shall track and report to D&B *** on all Substitute Services and the applicable Imputed Substitute Services Charges; plus
(iii)If Ensono has materially failed to provide Services Ensono is obligated to provide pursuant to this Agreement during the calendar year (whether or not excused as a Force Majeure Event pursuant to Section 20.3), the estimated amount of the Charges that would have been incurred had Ensono performed.
(c)Annual Minimum Charges Shortfall payments shall not count toward the Annual Minimum Charges in the year in which paid (e.g., an Annual Minimum Charges Shortfall payment made in 2018 for 2017 shall not count as 

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Charges for determining 2018’s Annual Minimum Charges).  Annual Minimum Charges Shortfall payments shall count toward the Commitment Cap.  If there is an overachievement with respect to Annual Minimum Charges in any calendar year the overachievement shall not “roll over” or otherwise be creditable to the Annual Minimum Charges in any following year, although it shall count towards the Commitment Cap as provided in Section 14.3.
(d)Determination of the Minimum Charge shall be on a Services delivered and not on a charges payable basis.  In other words, in determining the Adjusted Charges for a calendar year, the Charges for the Services delivered during that calendar year shall be used, regardless of when invoiced.  Accordingly the Charges for the Services delivered in December of a year (even though invoiced in January and paid in February) shall be used for that year, not the following year.  As a result, the Annual Minimum Charges for a calendar year cannot be determined until the invoice for December’s Services is prepared in January of the following year.
(e)Ensono shall provide D&B with detailed calculations and backup each *** regarding the Annual Minimum Charges Shortfall calculation within sixty (60) days following Ensono’s delivery of the invoice covering Services provided during the last month of each calendar quarter during the Term.  
(f)If D&B fully Terminates for Convenience (or Ensono terminates for D&B’s breach in accordance with Section 23.1(b)) other than a termination that is effective on the first day of a calendar year, the Annual Minimum Charges shall apply for such year, pro-rated for the number of days in the year until the effective date of termination.
(g)The Annual Minimum Charges shall not be applicable in the year of termination if D&B fully terminates pursuant to Section 23.1(a). 
		
	14.3
	Commitment Cap.

(a)If (x) the total Charges payable under this Agreement during the Initial Term (including Annual Minimum Charges Shortfalls, and 12 Month Rule Charges but not including Pass-Through Expenses, Out-Of-Pocket Expenses, or taxes) plus (y) the aggregate amount of Imputed Substitute Services Charges, equal or exceed the Commitment Cap provided in Schedule N (the “Commitment Cap”) then:
(i)***
(ii)***.
(b)This Section 14.3 shall not limit the applicability of 12 Month Rule Charges, they shall apply even if the Commitment Cap has been exceeded.
(c)Calculations under this Section 14.3 shall be made on a Services delivered and not on a charges payable basis, provided that D&B in fact ultimately pays the underlying amounts. 

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(d)All other Charges (including 12 Month Rule Charge) shall be applied to the Commitment Cap before Annual Minimum Charges Shortfall and Termination For Convenience Charges are applied.
(e)If a Termination For Convenience Charge or Annual Minimum Charges Shortfall would cause the Commitment Cap to be achieved only the portion of such Charge that causes the Commitment Cap to be exceeded shall be payable.  For example, if the Commitment Cap is $***, total Charges to date are $*** and the Termination For Convenience Charge would be $***, only the first $*** shall be payable, as the rest is in excess of the Commitment Cap.
(f)Within sixty (60) days following Ensono’s delivery of the invoice covering Services provided during the last month of each quarter during the Initial Term (other than the last quarter) Ensono shall provide D&B with a statement showing Ensono’ calculation of the amounts creditable toward the Commitment Cap. 
(g)For the avoidance of doubt, any charges paid by D&B with respect to Services provided by Ensono prior to January 1, 2017 shall not be creditable toward the Commitment Cap, even if paid during the Initial Term. 
		
	14.4
	[Intentionally Omitted]

		
	14.5
	Termination For Convenience Charges.

(a)Subject to Section 14.3, if D&B terminates this Agreement for Convenience, there shall be a Termination For Convenience Charge as provided in Schedule N (the “Termination For Convenience Charge”), calculated as of the effective date of termination.  The Termination For Convenience Charge shall be invoiced on or after the effective date of termination and paid in the same manner as any other Charge, and payment shall not be a condition precedent to the effectiveness of termination.
(b)12 Month Rule Charges shall apply in addition to any Termination For Convenience Charge.  Other than 12 Month Rule Charges there shall be no other Charges (including any so-called wind down charges) applicable to a termination by D&B. 
(c)As provided in Section 14.3(e), if the amount of the applicable Termination For Convenience Charge would exceed the remaining amount of the Commitment Cap, only the portion of the Termination For Convenience Charge necessary to reach the Commitment Cap shall be payable.
		
	14.6
	12 Month Rule Charges.

(a)Unless otherwise provided in an SOW, if D&B terminates either an Additional Resource Unit or a New Service (other than a New Service as to which the parties have stipulated that the 12 Month Rule Charges will not apply) during the first twelve (12) months after being placed into service (other than a termination resulting from a Force Majeure Event or termination pursuant to Section 23.1(a)), then the 

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Charge for such New Service or Additional Resource Unit shall continue until twelve (12) months have elapsed.  If D&B so elects (or where D&B has terminated for convenience), Ensono shall bill D&B for the remaining months in a lump sum, which D&B shall pay in accordance with the terms of this Agreement.  Such Charges are referred to a “12 Month Rule Charges”.
(b)For purposes hereof, an “Additional Resource Unit” shall mean a Resource Unit that is designated in Schedule T as being subject to being 12 Month Rule Charges, is so designated in the relevant Project Definition executed after the SOW Effective Date, and which is incremental to the then existing number of Resource Units used by D&B in that Resource Unit category.  For example, if a “Mid-Range Server” is so designated in Schedule T and the relevant Project Definition and D&B’s usage of that Resource Unit had been 10 but D&B adds 3 additional Mid-Range Servers, such 3 additional Mid-Range Servers shall be Additional Resource Units.  In such example, the existing Mid-Range Servers would not be Additional Resource Units and if D&B terminated such previously existing Mid-Range Servers no 12 Month Rule Charges would apply to their termination.
(c)Ensono shall track and report *** to D&B on the status of each Additional Resource Unit. 
		
	14.7
	Coordination with the IMSA.

All calculations in Sections 14.2, 14.3, 14.5, and 14.6 shall include the comparable amounts incurred under the IMSA (for clarity the Annual Minimum Charges, Commitment Cap, and Termination For Convenience Charges amounts provided herein are amounts that have been established by the parties taking both agreements into account).  If such provisions require a payment by D&B the amount of such payment shall be allocated between the GMSA and the IMSA (and therefore D&B and DBIS) as D&B and DBIS may jointly direct.  
		
	14.8
	Pass-Through Expenses.

(a)“Pass-Through Expenses” shall mean third party charges that are to be (i) administered by Ensono, and (ii) paid by D&B (either (A) directly to the third party or (B) to Ensono, which, in turn, pays the third party) on an Out-of-Pocket Expenses basis, provided that any third party charges paid by Ensono will be subject to a 3% mark-up unless otherwise provided in the applicable SOW.  All Pass-Through Expenses are listed in the applicable SOW.  Ensono shall arrange for delivery by third parties to Ensono of invoices for Pass-Through Expenses, and Ensono shall promptly review such invoices and provide D&B with a copy of or the original invoice, together with a statement identifying which charges are proper and valid and should be paid by D&B.
(b)Ensono shall use Commercially Reasonable Efforts to minimize the amount of Pass-Through Expenses.  With respect to services or materials paid for on a Pass-Through Expenses basis, D&B may:

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(i)obtain such services or materials directly from one or more third parties;
(ii)designate the third party source for such services or materials;
(iii)designate the particular services or materials (e.g., equipment make and model) Ensono shall obtain (although if Ensono demonstrates to D&B that such designation will have an adverse impact on Ensono’s ability to meet the Service Levels, such designation shall be subject to Ensono’s approval);
(iv)designate the terms for obtaining such services or materials (e.g., purchase or lease and lump sum payment or payment over time);
(v)require Ensono to identify and consider multiple sources for such services or materials or to conduct a competitive procurement; and review and approve the applicable Pass-Through Expenses before entering into a contract for particular services or materials.
		
	14.9
	Incidental Expenses.

Except as may be otherwise provided in Schedule C, or as may be otherwise agreed as to New Services, expenses that Ensono incurs in performing the Services (including travel and lodging, document reproduction and shipping, and long-distance telephone) are included in Ensono’s Charges and rates set forth in this Agreement.  Accordingly, such Ensono expenses are not separately reimbursable by D&B unless, on a case-by-case basis for unusual expenses, D&B has agreed in advance and in writing to reimburse Ensono for the expense.
		
	14.10
	Taxes.

The parties’ respective responsibilities for taxes arising under or in connection with this Agreement shall be as follows:
(a)Each party shall be responsible for:
(i)any personal property taxes on property it uses, regardless of whether such property is owned or leased;
(ii)franchise and privilege taxes on its business, and taxes based on its net income or gross receipts.
(b)Ensono shall be responsible for any sales, use, excise, value-added, services, consumption and other taxes and duties payable by Ensono on the goods or services used or consumed by Ensono in providing the Services where the tax is imposed on Ensono’s acquisition or use of such goods or services and the amount of tax is measured by Ensono’s costs in acquiring such goods or services.  Ensono will be responsible for all taxes imposed by or in any country in which Ensono performs any portion of the Services if the Services are to be used by D&B in another country 

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(unless the country in which the Services are to be provided from is the United States or a member of the European Union); provided that if (i) there would have been a tax imposed if the Services had been provided from the United States or the European Union, (ii) D&B would have been responsible for such tax (either directly or through reimbursement to Ensono), and (iii) there is a higher tax burden in the country from which the Services are actually provided, then Ensono shall only be responsible for the amount by which the actual tax burden is higher and D&B shall be responsible for the tax amount that is equal to the amount of tax that would have been imposed on the Services if the Services were provided from the United States or a member of the European Union.  For instance, if Ensono chooses to perform in India any portion of the Services for use by D&B in the United States or Europe, Ensono shall be responsible for all taxes imposed by or in India, less the amount of taxes that would otherwise have been imposed on the Services if such Services had been performed in the United States or the European Union.
(c)D&B shall be responsible for all sales, use, excise, value-added, services, consumption, and other taxes and duties that are assessed on the provision of the Services as a whole or on any particular Service received by D&B from Ensono (or shall provide Ensono exemption or direct pay certificates).
(d)If a sales, use, excise, value added, services, consumption or other tax is assessed on the provision of any of the Services, the parties shall work together to segregate the payments under this Agreement into three (3) payment streams: (i) those for taxable Services; (ii) those for which Ensono functions merely as a payment agent for D&B in receiving goods, supplies, or services (including leasing and licensing arrangements); and (iii) those for other nontaxable Services.
(e)If taxable and non-taxable Services are provided by Ensono, Ensono will cooperate with D&B to provide invoices that accurately reflect which portions are subject to, and which portions are not subject to, tax.  There will be no gross-up for any international withholding taxes.
(f)D&B shall have the right to control any tax disputes, and Ensono shall, when requested by D&B, assist and cooperate with D&B in challenging the validity of a tax, provided that D&B shall bear all of Ensono’s reasonable costs and expenses in connection with any such challenge.
(g)D&B shall be entitled to any tax refunds or rebates granted to the extent such refunds or rebates are of taxes that were paid by D&B.
		
	14.11
	New Services.

If D&B requests Ensono to perform functions that are (1) designated as Retained Responsibilities; or (2) materially different from, and in addition to, the scope of the Services (i.e., not “more of the same”) (collectively, “New Services”), the parties shall document such New Services pursuant to an SOW (and utilize the Project Management Process, as applicable).  The parties’ obligations with respect to such functions shall be as follows:

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(a)If, although the parties cannot agree upon the pricing applicable to such New Services, (1) D&B nonetheless desires Ensono to perform them, (2) as the incumbent service provider Ensono has a competitive advantage over third parties in providing such New Services, and (3) any proposed New Services are reasonably expected to be *** then upon D&B’s instruction to proceed, Ensono shall begin performance pursuant to the T&M Rates and pursuant to a SOW hereunder (utilizing, as applicable, the Project Management Process), and the following price determination mechanism shall apply:
(i)The parties shall mutually agree upon the appointment of one (1) independent appraiser.  If the parties are unable to agree upon such appraiser, then the Gartner Group (or such other entity mutually agreed by the parties) will appoint the appraiser.
(ii)Each of Ensono and D&B will submit, sealed and in writing, a proposed price for the New Services.  After independently performing necessary research and analysis and internally valuing and pricing the New Services as though there were a competitive market for such services, the appraiser shall open the sealed pricing proposals from Ensono and D&B.  The appraiser shall then choose the pricing proposal that is closest to its own internal value and price, and shall notify Ensono and D&B in writing of its choice.  The price that is included within the proposal that is chosen by the appraiser shall thereafter apply to the New Services.
(iii)Until such price determination is completed, Ensono may (without waiving its right to use the price determination mechanism) provisionally bill D&B (pursuant to applicable T&M Rates or other charges suggested by Ensono, unless the T&M Rates or charges suggested by D&B are higher, in which case Ensono may provisionally bill D&B at the T&M Rates or charges suggested by D&B), subject to Ensono’s providing a prompt credit or refund should the charges be determined to be lower than the provisional charges and/or T&M Rates utilized.
(b)D&B may in its discretion elect to solicit and receive bids from, or otherwise enter into agreements with, third parties to perform or to perform itself such New Services.  If D&B so elects, Ensono shall cooperate, at D&B’s expense and subject to compliance with Ensono’s reasonable and customary confidentiality and security requirements, with D&B and the third parties with respect to the provision of such services.
		
	14.12
	Benchmarks.

Beginning *** after the applicable SOW Effective Date D&B may benchmark the Charges for all of the Services under such SOW, provided that benchmarking of the Charges may not be undertaken more than *** time in any rolling *** month period, as follows:
(a)A benchmarking under this Section shall be conducted by an independent industry-recognized benchmarking service provider designated by D&B and approved by Ensono (“Benchmarker”).  Ensono agrees that Gartner Group, Nautilus Advisors and Compass Group are acceptable as a Benchmarker.  The 

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Benchmarker shall not be an Ensono Competitor.  If Ensono rejects any other Benchmarker suggested by D&B, Ensono shall also provide D&B with the names of three (3) other Benchmarkers that would be acceptable to Ensono.  D&B shall retain and pay the charges for the Benchmarker, but the Benchmarker may not be retained on a contingency basis.  The parties shall cooperate with the Benchmarker, including, as appropriate, making available knowledgeable personnel and pertinent documents and records.
(b)The Benchmarker shall perform the benchmarking in accordance with the Benchmarker’s documented procedures that shall be provided to the parties prior to the start of the benchmarking process.  The Benchmarker shall compare the Charges for the Services benchmarked to the costs being incurred in a representative sample of similar services, not including in-house IT operations.  The Benchmarker shall select the representative sample from entities (i) identified by the Benchmarker and approved by the parties, and (ii) identified by agreement of the parties and approved by the Benchmarker.  The representative sample: (A) shall include at least eight (8) entities; and (B) may include entities that are outsourcing customers of Ensono, subject to express confidentiality restrictions within Ensono’s agreements with such customers.
(c)The Benchmarker shall conduct a benchmarking as promptly as is prudent in the circumstances.  In conducting the benchmarking, the Benchmarker shall normalize the data used to perform the benchmarking to accommodate, as appropriate, differences in volume of service, scope of services, service levels, financing or payment streams, bundling of multiple resource units (e.g., including or excluding systems software from hardware pricing), and other pertinent factors.  Ensono will provide to the Benchmarker reasonably detailed information about the component elements of Ensono’s charges and pricing methods under this Agreement (although if Ensono fails to do so the Benchmarker shall proceed with such assumptions as it determines are reasonable under the circumstances), and the Benchmarker shall gather and utilize reasonably detailed information with respect to the representative samples being used for comparison.  At the appropriate stage early in the process; but, in any event, prior to completing its report, the Benchmarker will meet with the parties and describe in reasonable detail the steps that the Benchmarker proposes to take to normalize the data for comparison.  The parties shall have a reasonable opportunity to comment on those steps, and the Benchmarker shall incorporate into its normalization process the reasonable suggestions made by either party; provided that if those suggestions are in conflict, the conflict will be resolved as provided below.  After the Benchmarker issues its preliminary report, each party shall be provided a reasonable opportunity to review, comment on, and request changes in the Benchmarker’s preliminary report.  Following such review and comment, the Benchmarker shall issue a final report of its findings and conclusions, indicating what it believes all the Charges would be at the best quartile (viewed from the perspective of most beneficial to D&B (e.g., lowest charges shall be the “best” charges)) and at the median.  In doing so, the Benchmarker will set all Charges at the best quartile and the median, not only those individual items of Charges which it believes need to be reduced (e.g., certain items of the Charges may increase while others may decrease).

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(d)If the suggestions of D&B and Ensono to the Benchmarker concerning the normalization process are in conflict, the parties will: (i) use the internal dispute resolution process reflected in this Agreement; (ii) if the internal dispute resolution process is not successful within fifteen (15) days, the parties will submit the Benchmarker’s proposed normalization process, as supplemented by the D&B suggestions (the “D&B Process”) and as supplemented by the Ensono suggestions (the “Ensono Process”), to a recognized national accounting firm (although not necessarily one of the “Big Four”) who is not the principal tax advisor or the outside auditor for either Ensono or D&B or any of their Affiliates (the “Accounting Firm”), who shall select one or the other of the two processes as the process more likely to produce valid comparisons.  The decision of the Accounting Firm shall be final and binding on the parties, and the Benchmarker shall be required to follow its normalization process, as supplemented by the suggestions of the party selected by the Accounting Firm.  The Accounting Firm shall be instructed that its decision should be rendered in thirty (30) days or less.  At the request of either party, soon after retaining the Accounting Firm, the parties (and, if either desires, the Benchmarker) shall meet with the Accounting Firm to discuss its concerns with the approach proposed by the other party and the reasons why its proposal differs.  The party whose process is not selected as the more likely to produce valid comparisons shall pay the fees of the Accounting Firm.
(e)If in the final report of the Benchmarker, the Charges to D&B for the benchmarked Services are greater than the highest charge within the best *** of the representative sample the parties shall meet and work in good faith to adjust the Charges in an attempt to achieve such best ***. 
(f)If in the final report of the Benchmarker, the Charges to D&B for the benchmarked Services are greater than the median charge within the representative sample, the Charges shall be reduced ***.  Such reductions shall be effective forty-five (45) days after ***.  This Subsection 14.12(f) not a substitution for Subsection 14.12(e); if the Benchmarker’s report is that the Charges under this Agreement are greater than the median and the best quartile then both subsections shall apply (i.e., the Charges shall be reduced to at least the median level, and the parties shall work in good faith to further reduce them to the best quartile).  
(g)If in the final report of the Benchmarker, the Charges to D&B for the benchmarked Services under SOW No. 9 are lower than the median charge within the representative sample (viewed from the perspective of most beneficial to D&B), then no adjustment shall be made.  In no event shall the Charges be increased as a result thereof.
(h)Unless it is alleged and held that there has been fraud or collusion, material arithmetic error, or material failure of the Benchmarker to follow the methodology provided for above, the determination of the Benchmarker shall be final and binding on the parties.

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	15.
	INVOICING AND PAYMENT

		
	15.1
	Invoicing.

(a)Ensono shall invoice D&B for all amounts due under this Agreement on a monthly basis.  Ensono will render to D&B a single consolidated invoice for each month’s Charges, including all amounts payable under this Agreement and all SOWs hereunder, showing the details reasonably specified by D&B, including as necessary to satisfy D&B’s internal accounting and chargeback requirements as have been made known to Ensono.  Such invoice shall clearly delineate the Charges due under each SOW, in separate line items (for each SOW) within such invoice.  Notwithstanding the previous sentence, upon the written approval of the D&B GS&P as evidenced by execution of the applicable SOW, D&B shall have the right to request that any New Services or any Charges pursuant to a particular SOW not be included within such monthly consolidated invoice, but rather, be billed directly to the D&B entity receiving such Services (including (i) as provided in Section 3.5(a) and/or (ii) as necessary to satisfy D&B’s internal accounting and chargeback requirements).  Fixed Charges shall be billed in the month for which they relate, and variable Charges and credits shall be billed or credited, as the case may be, in arrears during the following month.  For any disputed Charge, Ensono shall provide D&B with written information citing the specific section(s) of this Agreement on which such Charge is based.  Ensono shall include the calculations utilized to establish the Charges.  The approved form of invoice for each SOW shall be a Schedule to the SOW.
(b)If a credit is due D&B pursuant to this Agreement, Ensono shall provide D&B with an appropriate credit against amounts then due and owing; if no further payments are due to Ensono, Ensono shall pay such amounts to D&B within thirty (30) days.
(c)Ensono shall provide D&B access to volume data on a timely basis, in order to permit D&B to promptly charge its customers.  The invoice will separately identify Pass-Through Expenses for the month, credits for amounts previously incurred by D&B, and the amount of taxes Ensono is proposing to collect.  Ensono will include with the invoice the calculations utilized to establish the Charges in sufficient detail to enable D&B to confirm the accuracy thereof.
(d)Each month’s invoice shall be complete as to the fixed Charges for such month and the variable Charges for the previous month.  Ensono may not charge D&B any additional amounts for a month for which an invoice has been rendered, except (i) that if a particular month’s invoice indicates that certain Charges are incapable of being determined as of the date of such invoice, then such Charges may be billed on a later invoice, although in no event shall they be billed more than *** after the end of the month in which incurred and (ii) that Ensono may correct an invoice within *** after it was provided to D&B ***; provided, however, that the foregoing limitations on Ensono’s ability to invoice previously incurred Charges shall not apply to the extent that D&B is withholding payment (i) for Ensono’s failure to meet any Payment Milestone, as provided in this Agreement or an SOW hereunder or (ii) pursuant to Section 15.7.

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	15.2
	Payment Due.

Subject to the other provisions of this Section 15, invoices provided for under Section 15.1 and properly submitted to D&B pursuant to this Agreement shall be due and payable by D&B within *** days after receipt thereof; provided that with respect to any invoice that would otherwise be payable in ***, D&B’s payment obligation shall be extended until ***.  Any amount due under this Agreement for which a time for payment is not otherwise specified shall be due and payable within *** days after receipt of a proper invoice for such amount.  Any undisputed amount not paid when due will thereafter bear interest at a rate equal to the lesser of (a) *** per month, or (b) the highest rate allowed by applicable law; ***.  Unless otherwise elected by D&B and included within an SOW hereunder, all amounts stated in this Agreement and any SOW are in United States Dollars (“US$”) and shall be paid to Ensono in the United States and in United States Dollars; provided however, that if elected by D&B, Services that are provided outside of the United States pursuant to an SOW (e.g., an Ensono Affiliate within the E.U. provides Services in the E.U. to a D&B Affiliate within the E.U.) may be invoiced to D&B and paid by D&B within the currency of such SOW country or region (e.g., the Euro, with respect to the example provided in this sentence).
		
	15.3
	Accountability.

Ensono shall maintain complete and accurate records of and supporting documentation for the amounts billable to and payments made by D&B hereunder.  Ensono agrees to provide D&B with documentation and other information with respect to each invoice as may be reasonably requested by D&B to verify that Charges are accurate and comply with the provisions of this Agreement.
		
	15.4
	Proration.

Except as may be otherwise provided in this Agreement, periodic Charges under this Agreement are to be computed on a calendar month basis, and shall be prorated for any partial month.
		
	15.5
	Refundable Items.

(a)Prepaid Amounts.  Where D&B has incurred or prepaid for a third party service or function for which Ensono is assuming financial responsibility under this Agreement, upon either party identifying the prepayment Ensono shall refund to D&B that portion of such prepaid expense that is attributable to periods on and after the Effective Date.
(b)Refunds and Credits.  If Ensono should receive a refund, credit or other rebate for goods or services previously paid for by D&B on a Pass-Through Expenses basis, Ensono shall promptly notify D&B of such refund, credit or rebate and shall promptly pay the full amount of such refund, credit or rebate, as the case may be, to D&B; if no further payments are due to Ensono, Ensono shall pay such amounts to D&B within forty-five (45) days.  To the extent a Service Level Credit is due to D&B pursuant to an SOW, Ensono shall provide D&B with an appropriate credit 

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against amounts then due and owing on the next invoice submitted to D&B; if no further payments are due to Ensono, Ensono shall pay such amounts to D&B within thirty (30) days.
		
	15.6
	***.

***.
		
	15.7
	Disputed Charges.

Subject to Section 15.6, D&B shall pay undisputed Charges when such payments are due under this Article 15 and Schedule C.  D&B may withhold payment of particular Charges that D&B disputes in good faith.
		
	16.
	SAFEGUARDING OF DATA; CONFIDENTIALITY

		
	16.1
	D&B Information.

(a)D&B Information shall be and remain, as between the parties, the property of D&B.  Ensono shall not possess or assert any lien or other right against or to D&B Information.  No D&B Information, or any part thereof, shall be:
(i)used by Ensono for any purpose other than in connection with providing the Services;
(ii)incorporated into Ensono databases;
(iii)sold, assigned, leased or otherwise disposed of to third parties by Ensono; or commercially exploited by or on behalf of Ensono.
(b)Upon D&B’s request, the termination or expiration of this Agreement for any reason (including termination for cause) or, with respect to any particular D&B Information, on such earlier date that the same shall be no longer required by Ensono in order to render the Services hereunder, D&B Information (including copies thereof) shall be promptly returned to D&B by Ensono in a form reasonably requested by D&B or, if D&B so elects, shall be destroyed by Ensono.
(c)Personally Identifiable Information
(i)Ensono acknowledges that, in connection with its work for and on behalf of D&B, it may receive access to “Personally Identifiable Information” (as used herein, “PII”) as defined by applicable privacy, data breach and information security laws and regulations, and potentially including, but not limited to, a person’s name in conjunction with the person’s Social Security Number or other government issued identifier, driver’s license number, account number, credit or debit card number, or personal identification number or password that would permit access to the person’s account; provided, however, that (without in anyway limiting Ensono’s obligation with regard to D&B Data) such information does not include any publicly 

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available information about a person if, under Applicable Law and Regulations, that is not considered PII.  
(ii)Any other information that can be considered PII under Applicable Laws and Regulations (including date of birth, health information, sexual orientation, race, religion, nationality and political interest), shall also be considered PII under this Agreement.  
(iii)Only to the extent any information that would otherwise be defined as PII is encrypted in such a manner that under Applicable Laws and Regulations it would not be considered PII, then it shall not be considered PII under this Agreement.  This exception shall not apply to encrypted information where the encryption key is associated and usable with the encrypted information.  
(iv) D&B has the right to direct Ensono in connection with the collection, processing, use, disclosure and retention of such PII, and Ensono shall process such PII only in accordance with such directions.  Ensono and D&B shall also comply with all Applicable Laws and Regulations with respect to such PII to the extent such Applicable Laws and Regulations are applicable to each party’s performance under this Agreement. 
(v)Ensono and D&B each acknowledge and agree that D&B retains all rights and interest in the PII, including the right to act as Data Controller under Applicable Laws and Regulations including the relevant EEA member state law transposing the EU Data Protection Directive (Directive 95/46/EC), if PII is collected, used, disclosed or retained within the European Economic Area or from its citizens.  Additionally, D&B retains the right to direct the disclosure of PII by Ensono to third parties with the exception of Ensono providing it to third party service providers approved by D&B where necessary to fulfill its obligations pursuant to this Agreement.
(vi)Ensono shall promptly notify D&B in writing of any subpoena or other court or administrative order, proceeding or other request seeking access to, or disclosure of, PII, unless Ensono is prohibited from making such notification by Applicable Law or Regulations.  Ensono shall limit the nature and scope of the required disclosure and/or cooperate fully with D&B in any effort to intervene and quash or limit the disclosure requirement to the extent not prohibited by Applicable Laws and Regulations.  D&B shall reimburse Ensono for Ensono’s reasonable expenses incurred in relation to any action taken by Ensono pursuant to this Section 16.1(c)(vi).
		
	16.2
	Safeguarding D&B Data.

(a)Ensono shall establish and maintain safeguards against the destruction, loss or alteration of D&B Data in the possession or control of Ensono as required under Applicable Laws and Regulations as applicable to Ensono or, if applicable to D&B, as Ensono has been instructed by D&B, and which are no less rigorous than those provided in Schedule I (subject to the process described in Section 16.3(d)) and which are no less rigorous than those maintained by Ensono for 

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its other customers’ information of a similar nature.  D&B may establish backup security for D&B Data and to keep backup D&B Data and D&B Data files in its possession if it chooses. 
(b)Without limiting the generality of Section 16.2(a):
(i)Ensono Personnel shall not attempt to access, or allow access to, any D&B Data that they are not permitted to access under this Agreement.  If such access is attained (or is reasonably suspected), Ensono shall immediately report such incident to D&B, describe in detail the accessed D&B Data, and if applicable return to D&B any copied or removed D&B Data.
(ii)Ensono shall utilize Commercially Reasonable Efforts, including thorough systems security measures, to guard against the unauthorized access, alteration, or destruction of Software and D&B Data.  Such measures shall include the use of Software which: (A) requires all users to enter a user identification and password prior to gaining access to the information systems; (B) controls and tracks the addition and deletion of users; and (C) controls and tracks user access to areas and features of the information systems.
(iii)In connection with the collection, processing, use, disclosure, retention, destruction and/or maintenance of PII by Ensono, Ensono represents and warrants that it has implemented appropriate controls to:
(A)Confirm that each Ensono and Ensono Affiliate employee, agent, subcontractor and any authorized third party with access to PII: (1) complies in all material respects with the provisions of this Agreement regarding the privacy and security of PII; and (2) is trained regarding their handling of PII.  Ensono shall be responsible for any failure of its and its Affiliates’ employees, agents, subcontractors and any authorized third parties to comply with these terms and conditions regarding PII.
(B)Cause its employees, agents, subcontractors and any authorized third parties with access to D&B’s (or Ensono’s) premises follow all applicable general, visitor, privacy and physical security policies and only access authorized areas.
(C)Subject to Section 16.3(d), Ensono shall implement security controls defined by D&B based on the data classification of the data store.  These responsibilities are described in the Data Classification, Data Handling & Destruction and Cryptographic Standards and Cryptography & Key Management policies.
(D)Grant access to PII based on individuals’ specific roles and responsibilities.  Ensono shall adhere to the principle of “least privilege” in its role-based access controls, wherein only those Ensono and its Affiliates employees, agents, subcontractors and/or other authorized third parties who need access to specific D&B and PII data elements in order to fulfill their obligations pursuant to this Agreement are granted such access.

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(E)Access permissions shall not allow public groups to have read and/or write access to PII or any other D&B data.
(F)Confirm that there are no common or group system user IDs on systems where D&B data, including PII, is maintained (i.e., users must be uniquely identified).
(G)Conduct revalidation of access rights to PII at least annually.  
(H)Prohibit downloading and/or use of file-sharing and other software that can open security vulnerabilities to areas that hold D&B data, including PII.
(I)Notify D&B within *** of the termination of any Ensono or its Affiliates employee, agent, subcontractor or other authorized third party who had access to a D&B network account.  Ensono explicitly acknowledges that this notice is necessary to enable the D&B Service Desk to terminate all account- and system-level access (application, e-mail, network and remote) upon resource termination.  Subject to the confidentiality provisions of Section 16.4 (Confidentiality), Ensono also agrees to provide D&B advance notice (as soon as reasonably practicable) of (i) any material disciplinary action to be taken against any of its employees (i.e., an involuntary termination) who have D&B network accounts, or (ii) any material sanction to be taken against any of its agents, subcontractors or other authorized third parties who have D&B network accounts, each as and when relevant, including within the context of a breach of an applicable security policy that has, or is reasonably likely to have, a material, adverse impact on D&B.
(J)During the Term, unless otherwise agreed to in writing and in advance by D&B, maintain a security breach incident response plan that addresses security breach incident handling.  
(K)Provide D&B with prompt written notice of any security breach incident that involves, or which Ensono reasonably believes to involve, the unauthorized access, use or disclosure of PII provided to Ensono by, or on behalf of, D&B.  In no event shall such notice be given more than *** after Ensono becomes aware of such a security breach incident.  Such notice shall summarize, in reasonable detail and to the best of Ensono’s knowledge at that time, the nature of the breach or unauthorized use or disclosure of, or access to, PII and the corrective action that has been taken or that will be taken by Ensono.  
(L)Promptly inform D&B’s Chief Privacy Officer, D&B’s Chief Information Security Officer or their designees, or the local D&B contact(s) specified for notice under this Agreement, upon becoming aware of any use, disclosure or transfer of PII that is not permitted by this Agreement.

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	16.3
	GLB & PCI Compliance.

(a)In addition to and not in limitation of Ensono’s other obligations of confidentiality and non-disclosure under this Agreement: (i) Ensono will implement appropriate administrative, technical, and physical safeguards and other appropriate measures to protect the security, confidentiality, and integrity of nonpublic personal information relating to customers of D&B and other D&B Information received by Ensono from D&B, all as may be appropriate to comply with Applicable Laws and Regulations governing data security to the extent such Applicable Laws and Regulations are applicable to Ensono’s performance of its obligations under this Agreement (but subject to Section 24.7 below), and (ii) Ensono shall not use any PII relating to D&B’s customers received from D&B or obtained as a result of Services performed for D&B (“D&B Customer Information”) except as necessary in the ordinary course of business to perform Services under this Agreement.
(b)Therefore, notwithstanding anything to the contrary contained in this Agreement and in addition to (and not in substitution for) Ensono’s other obligations hereunder, Ensono agrees that:
(i)it will not disclose or use any D&B Data except to the extent necessary to carry out its obligations under this Agreement and for no other purpose;
(ii)it will not disclose D&B Data to any third party, including, without limitation, its third party service providers without the prior consent of D&B and an agreement in writing from the third party to use or disclose such D&B Data only to the extent necessary to carry out Ensono obligations under this Agreement and for no other purposes; and it will maintain, and will require all third parties approved under subsection (ii) to maintain, effective information security measures to protect D&B Data from unauthorized disclosure or use; and it will provide D&B with information regarding such security measures upon the reasonable request of D&B.  Ensono shall promptly provide D&B with information regarding any failure of such security measures or any security breach that Ensono reasonably believes has affected or will affect D&B Data.
(c)Ensono will also ensure that any such third party to whom D&B authorizes Ensono to transfer or provide access to D&B Customer Information: (i) signs a written contract to restrict its use of D&B Customer Information to the use specified in the agreement between the Ensono and the third party (which use must be in coordination with Ensono’s performance of its obligations hereunder); and (ii) agrees to comply with all Applicable Laws and Regulations to the extent that such Applicable Laws and Regulations are applicable to such third party’s performance of its obligations under this Agreement, as well as the privacy notice provided by D&B to its customers.  Ensono will be responsible for the acts or omissions of any third party to whom it transfers or provides access to D&B Customer Information hereunder.
(d)Allocation of Responsibility for Compliance With Policies.

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(i)Ensono shall also comply with D&B’s information security and data protection requirements in those environments within Ensono that are solely dedicated to D&B (in all shared environments within Ensono, Ensono shall comply with Ensono’s information and security policy and procedures), the version of which as of the Effective Date is set forth in Schedule I and which requirements may be updated by D&B from time to time in accordance with the change management procedures provided in Schedule A.  
(ii)Within ninety (90) days following the Effective Date, Ensono and D&B shall jointly review D&B policies to identify any obligations which would require a material change in the scope of Services in order for Ensono to comply.  Subject to Section 16.4(d)(iii), if as part of such review the parties discover that the Services as provided by Ensono as of the Effective Date are not compliant with any of the policies and procedures included in Schedule I, Ensono shall have thirty (30) days from the completion of the foregoing review (as such date may be extended by agreement of the parties) to deliver to D&B a corrective action plan with respect to such non-compliance.  If compliance with such policy or procedure requires a material change to the scope of Services, Ensono shall notify D&B and provide D&B Ensono’s proposed increase in the Charges, if any, to satisfy the compliance obligation.  Promptly following D&B’s receipt of this information, D&B shall either (i) grant an exception to the compliance requirement (pursuant to D&B’s exception process), or (ii) agree in writing to the increased Charges (subject to any mutually-agreed changes), or (iii) mutually agree upon compensating controls and/-or risk mitigation to address non-compliance.
(iii)The provisions of Section 16.3(d)(ii) shall not apply with respect to any non-compliance by Ensono with (x) any Applicable Laws and Regulations, (y) any obligation that is separately identified in this Agreement or any Statement of Work even if such obligation is also referenced in the policies set forth in Schedule I, or (z) any obligation that Ensono was required to comply with immediately prior to the Effective Date.  Ensono shall be required to remedy any such non-compliance at its sole cost. 
(e)Subject to Section 24.7 below and subject to compliance with the Change Control Procedure, Ensono will be responsible for modifying and upgrading systems, equipment, and procedures within Ensono’s scope of responsibility to maintain compliance with such requirements as they evolve.  
(f)For the purpose of payment card industry (PCI) standards, “Credit Card Data” is defined as a numerical credit card account number, whether encrypted or unencrypted, that is stored, transmitted or processed.  On or by April 1st of each calendar year during the Term and (if applicable) within fifteen (15) days from the period where Ensono begins to handle or process Credit Card Data on behalf of D&B in providing the Services, Ensono shall comply with either item (i) or (ii) below: 
(i)If Ensono handles or processes Credit Card Data on behalf of D&B in providing the Services, then: (1) such Credit Card Data shall be confined to D&B’s dedicated environment within Ensono and Ensono will fully comply with the 

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PCI Data Security Standards (“PCI DSS”), and Ensono will certify to D&B in writing that Ensono is in compliance with such; (2) Ensono will review and comply on an on-going basis with the current version of PCI DSS as detailed on the following website: https://www.pcisecuritystandards.org; (3) any cost of compliance with the PCI DSS shall be addressed within each SOW hereunder as and if applicable; and (4) in the event of an actual or suspected breach of such security measures affecting D&B’s PCI DSS compliance, Ensono shall notify D&B per the agreed upon incident response plan or within 24 hours whichever is first; or
(ii)If Ensono does not handle or process Credit Card Data on behalf of D&B in providing the Services, then Ensono will certify to D&B in writing that it does not handle or process Credit Card Data in any format on behalf of D&B in providing the Services, and is, thus, not required to comply with the PCI DSS in providing the Services hereunder.  
(g)The obligations set forth in this Section 16.2(b)(iii) will survive termination or expiration of this Agreement.
		
	16.4
	Confidentiality.

(a)Confidential Information.  Ensono and D&B each acknowledge that they may be furnished with, receive or otherwise have access to information of or concerning the other party that such party considers to be confidential, a trade secret or otherwise restricted.  “Confidential Information” shall mean all information, in any form, furnished or made available directly or indirectly by one party to the other that is marked confidential, restricted, or with a similar designation.  The terms and conditions of this Agreement shall be deemed Confidential Information of each party.
(b)In the case of D&B and its Affiliates, Confidential Information also, whether or not designated “Confidential Information,” shall include:
(i)scoring models, components in a D&B data topic, search algorithms, D&B data management rules and business logic; 
(ii)D&B Data;
(iii)the Procedures Manual to the extent it contains D&B Confidential Information or Developed D&B Materials;
(iv)D&B Materials (including Developed D&B Materials);
(v)all information concerning the operations, affairs and businesses of D&B, the financial affairs of D&B, and the relations of D&B with its customers, employees and service providers (including customer lists, customer information, account information and consumer markets);
(vi)each Technology Plan; and

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(vii)Software provided to Ensono by or through D&B; and other information or data stored on magnetic media, paper-based files or otherwise or communicated orally or otherwise, and obtained, received, transmitted, processed, stored, archived or maintained by Ensono under this Agreement (collectively, the “D&B Confidential Information”).
(c)In the case of Ensono and its Affiliates, Confidential Information also, whether or not designated as “Confidential Information,” shall include:
(i)hardware configurations, software, software configurations, methodologies (including integrations), routines, libraries, tools, algorithms, processes or technologies owned by Ensono and used in its business generally, as well as Ensono-proprietary data models and Ensono-proprietary business rules; 
(ii)all financial information of Ensono, personnel information of Ensono, strategic plans of Ensono, and customer/client (other than D&B) information of Ensono; and
(iii)all information concerning the operations, financial affairs and businesses of Ensono, and the relations of Ensono with its vendors, suppliers, employees and customers; and all records, data, and other information of Ensono and/or its Affiliates of a confidential or proprietary nature that is disclosed to D&B or any of its employees, contractors and/or agents, whether in tangible, intangible and/or oral form, and whether in written form or readable by machine (collectively, the “Ensono Confidential Information”).
(d)Obligations.
(i)Each party shall use at least the same degree of care as it employs to avoid unauthorized disclosure of its own information, but in any event no less than Commercially Reasonable Efforts, to prevent disclosing to unauthorized parties the Confidential Information of the other party, provided that Ensono may disclose such information to properly authorized entities as and to the extent necessary for performance of the Services, and D&B may disclose such information to third parties as and to the extent necessary for the conduct of its business, where in each such case: (A) the receiving entity first agrees in writing to substantially comply with the obligations provided in this Section 16.4; (B) use of such entity is authorized under this Agreement; (C) such disclosure is necessary or otherwise naturally occurs in that entity’s scope of responsibility; and (D) the disclosing party assumes full responsibility for the acts and omissions of such third party.
(ii)As requested by D&B during the Term, upon expiration or any termination of this Agreement, or completion of Ensono’s obligations under this Agreement or under any SOW, Ensono shall return or destroy, as D&B may direct, all material in any medium that contains D&B Confidential Information, excluding materials Ensono has a right to retain under this Agreement and materials required for Ensono or its Affiliates to comply with Applicable Laws and Regulations.  Upon expiration or any termination of this Agreement or any SOW and unless expressly 

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provided otherwise in this Agreement or in the affected SOW (e.g., post-term license provisions), D&B shall return or destroy, as Ensono may direct, all material in any medium that contains Ensono Confidential Information, excluding materials D&B has a right to retain under this Agreement, materials stored in D&B or its Affiliates’ archives, and materials required for D&B or its Affiliates to comply with Applicable Laws and Regulations.
(iii)Ensono shall use Commercially Reasonable Efforts to see that Ensono Personnel comply with these confidentiality provisions.  Each party shall use Commercially Reasonable Efforts to see that its auditors comply with these confidentiality provisions.
(iv)In the event of any actual or suspected misuse, disclosure or loss of, or inability to account for, any Confidential Information of the furnishing party, the receiving party promptly shall:
(A)notify the furnishing party upon becoming aware thereof;
(B)promptly furnish to the other party full details of the unauthorized possession, use, or knowledge, or attempt thereof, and use reasonable efforts to assist the other party in investigating or preventing the reoccurrence of any unauthorized possession, use, or knowledge, or attempt thereof, of Confidential Information; and
(C)take such actions as may be necessary or reasonably requested by the furnishing party to minimize the violation; and cooperate in all reasonable respects with the furnishing party to minimize the violation and any damage resulting therefrom.
(v)Neither party shall commence any legal action or proceeding against a third party with respect of any unauthorized possession, use, or knowledge, or attempt thereof, of Confidential Information by any person or entity which action or proceeding identifies the other party or its Confidential Information without such party’s consent.
(vi)The parties’ obligations respecting Confidential Information shall be retroactive to January 1, 2006 and shall continue for a period of five (5) years following expiration or termination of this Agreement, provided that the obligation with respect to D&B Data, any Personally Identifiable Information regarding individuals, and trade secrets shall continue in perpetuity, without limitation.
(e)Exclusions.  Section 16.4(d) shall not apply to any particular information (other than D&B Data and any Personally Identifiable Information) which Ensono or D&B can demonstrate:
(i)was, at the time of disclosure to it, in the public knowledge;

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(ii)after disclosure to it, is published or otherwise becomes part of the public knowledge through no fault of the receiving party;
(iii)was lawfully in the possession of the receiving party at the time of disclosure to it without obligation of confidentiality; or
(iv)was received after disclosure to it from a third party who had a lawful right to disclose such information to it without any obligation to restrict its further use or disclosure; or was independently developed by the receiving party without reference to Confidential Information of the furnishing party.
In addition, a party shall not be considered to have breached its obligations by disclosing Confidential Information (including D&B Data and Personally Identifiable Information) of the other party as required to satisfy any legal requirement of a competent government body provided that, promptly upon receiving any such request and to the extent that it may legally do so, such party advises the other party of the request prior to making such disclosure in order that the other party may interpose an objection to such disclosure, take action to assure confidential handling of the Confidential Information, or take such other action as it deems appropriate to protect the Confidential Information.
(f)Each party’s Confidential Information shall remain the property of that party.  Nothing contained in this Section 16.4 shall be construed as obligating a party to disclose its Confidential Information to the other party, or as granting to or conferring on a party, expressly or impliedly, any rights or license to the Confidential Information of the other party, and any such obligation or grant shall only be as provided by other provisions of this Agreement.
		
	16.5
	Corporate Information Security Risk Controls.

If D&B gives Ensono adequate advance written notice which (a) specifically references this Section 16.5 and (b) specifically identifies any D&B corporate information security risk control rules, policies, procedures, or regulatory requirements as to which D&B requires Ensono’s compliance, then any such request shall be subject to (i) Change Control Procedure provided in Schedule A, and (ii) if applicable, Section 16.3(d) for changes to Schedule I.  Not in limitation of the foregoing, any such proposed corporate information security risk control rules, policies, procedures, or regulatory requirements that are in any way different from or subject Ensono to requirements in addition to those set forth in Schedule I shall be implemented at D&B’s cost, including Ensono’s Out-of-Pocket Costs and T&M Rates for Ensono personnel.  Further, D&B acknowledges that pursuant to this Agreement, D&B is leveraging the advantages of a shared environment at Ensono with respect to certain of the Services and that some such requests may be infeasible in a shared environment.  Moreover, nothing in this Section 16.5 alters D&B’s obligation to bear additional compliance costs as provided in Section 24.7 (if applicable).

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	16.6
	Penetration Testing.

At least ***, Ensono will engage *** a third party security services provider to perform perimeter vulnerability and penetration testing of Ensono’s external systems and databases.  Ensono will provide to D&B the “Statement of Opinion” issued to Ensono by such third party provider following each such vulnerability and/or penetration test series, which shall be provided to D&B promptly upon its receipt by Ensono.  Additionally, Ensono will itself perform regular vulnerability testing on external and internal devices connected to the Ensono network supporting D&B.  At least once each ***, or more frequently as D&B may reasonably request, the parties will include in the agenda for the meetings described in Section 11.2(b)(iii) above: (a) discussion of testing methodologies used by Ensono, (b) identification of any requirements to modify such testing methodologies, in order to meet industry standards for testing, along with associated timeline(s) for inclusion of such modifications into the testing, and (c) a summary of the most current *** vulnerability scanning results, including but not limited to discussing scan results for portions of Ensono systems that are dedicated to supporting only D&B.  ***.  
		
	16.7
	IP Addresses.

Any IP addresses used by D&B or its customers for access to the Services shall be transferred by Ensono to D&B upon D&B’s written request.
		
	16.8
	Equitable Relief.

Both parties acknowledge that the Confidential Information received from the furnishing party under this Agreement (and/or each SOW hereunder) contains valuable trade secrets of the furnishing party, the disclosure of which would cause irreparable harm to the furnishing party that could not be remedied by the payment of damages alone.  Accordingly, with respect to any breach by the receiving party of this Article 16, the furnishing party will be entitled to seek from any court of competent jurisdiction (a) a temporary restraining order or preliminary and permanent injunctive relief, requiring the receiving party to comply with the provisions of this Agreement and to cease any violations of this Agreement; and (b) an equitable accounting for all profits or benefits arising out of such breach.
		
	16.9
	European Union Data Protection/Privacy Shield.

(a)Ensono warrants and undertakes that: (i) use of Personal Information will be for limited and legitimate purposes as specified in the applicable SOW; and (ii) Ensono will only transfer and process Personal Information from the European Union in accordance with the Data Transfer Agreement between the parties attached hereto as Schedule U.  Should such a mechanism be declared invalid by the European Commission, or for some other reason become unenforceable, the parties may utilize any other alternative European Union approved data transfer mechanism available to the parties without amending this Agreement unless obliged to do so. Specifically, the parties will observe the applicable requirements as appropriate of (i) any Binding Corporate Rules the parties have in place in relation to the requirements in respect of onward transfers or (ii) if relying on the Privacy Shield (and/or any 

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subsequent mechanism that may replace the Privacy Shield), each party will provide the same level of protection as the Privacy Principles (as defined by the US Department of Commerce).
(b)In any event, whichever mechanism is being relied upon, Ensono will notify D&B if it makes a determination that it can no longer meet its data transfer  obligations; and upon notice, take reasonable and appropriate steps to stop processing such Personal Data or remediate unauthorized use.  Ensono will ensure that any third party permitted access to the Personal Information under this Agreement also agrees in writing to comply with the terms of whichever mechanism is in place.
		
	16.10
	General Data Protection Regulation.

The parties acknowledge that the General Data Protection Regulation (“GDPR”) is expected to come into effect during the term of this Agreement from and including 25 May 2018.  Ensono shall comply with its obligations under the GDPR in relation to the Services performed under this Agreement. The parties agree that by no later than 15 December 2017, they shall discuss and jointly agree the implementation measures required to ensure any actions to be adopted in relation to the Services are applied in advance of the effective date of the GDPR, and enter into such a variation of this Agreement as required (a) to reflect their obligations and risks under the GDPR, and (b) for Ensono to provide the Services in a manner to ensure that D&B can comply with its obligations under the GDPR.
		
	17.
	REPRESENTATIONS AND WARRANTIES

		
	17.1
	Work Standards.

Ensono represents, warrants, and covenants that the Services shall be rendered with promptness and diligence and shall be executed in a workmanlike manner, in accordance with the practices and high professional standards used in well-managed operations performing services similar to the Services.
		
	17.2
	Non-Infringement.

(a)Each party represents, warrants, and covenants that it shall perform its responsibilities under this Agreement in a manner that does not infringe, or constitute an infringement or misappropriation of, any Intellectual Property Rights of any third party.
(b)Ensono further represents that as of the Effective Date, Ensono is not aware of any claims by any third party that Ensono infringes such third party’s Intellectual Property Rights.

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	17.3
	Authorization and Other Contracts.

Each party represents, warrants, and covenants to the other that:
(a)It has the requisite corporate power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement;
(b)The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by the requisite corporate action on the part of such party and will not constitute a violation of any judgment, order or decree;
(c)The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement will not constitute a material default under any material contract by which it or any of its material assets are bound, or an event that would, with notice or lapse of time or both, constitute such a default; and
(d)There is no proceeding pending or, to the knowledge of the party, threatened that challenges or may have a material adverse effect on this Agreement or the transactions contemplated by this Agreement.
		
	17.4
	Inducements.

Ensono represents, warrants, and covenants to D&B that it has not violated any applicable laws or regulations or any D&B policies of which Ensono has been given notice regarding the offering of unlawful inducements in connection with this Agreement.  If at any time during the Term, D&B determines that the foregoing warranty is inaccurate, then, in addition to any other rights set forth in this Agreement or available to D&B in law or at equity for Ensono’s breach of this Agreement, D&B may terminate this Agreement for cause without affording Ensono an opportunity to cure.
		
	17.5
	Viruses.

Ensono represents, warrants, and covenants that it shall use Commercially Reasonable Efforts so that no Viruses are coded or introduced into the systems used to provide the Services.  In the event a Virus is found to have been introduced into the systems used to provide the Services, Ensono shall promptly notify D&B and use Commercially Reasonable Efforts at no additional charge to assist D&B in reducing the effects of the Virus and, if the Virus causes a loss of operational efficiency or loss of data, to assist D&B to the same extent to mitigate and restore such losses.  “Virus” shall mean (a) program code or programming instruction or set of instructions intentionally designed to disrupt, disable, harm, interfere with or otherwise adversely affect computer programs, data files or operations; or (b) other code typically described as a virus or by similar terms, including Trojan horse, worm or backdoor.

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	17.6
	Disabling Code.

Ensono represents, warrants and covenants that, without the prior consent of D&B (which may be arbitrarily withheld), Ensono shall not insert into the Software, the systems used to provide the Services, or any Deliverable provided hereunder any code that would have the effect of disabling or otherwise shutting down all or any portion of the Services (or such Deliverable).  Ensono further represents and warrants that, with respect to any disabling code that may be part of the Software, the systems used to provide the Services, or any Deliverable provided hereunder, Ensono shall not invoke such disabling code at any time, including upon expiration or termination of this Agreement for any reason, without D&B’s prior consent.
		
	17.7
	FCRA.

Ensono represents, warrants and covenants that (a) no Ensono division or operation providing Services under this Agreement (i) is, as of the Effective Date, or (ii) will become during the Term, a ‘credit reporting agency’, as such term is defined under the FCRA; (b) no products or information services utilizing D&B Data will be or become a “consumer report” within the meaning of FCRA; (c) Ensono will do nothing during the Term that could result in D&B being deemed to be a ‘credit reporting agency’; (d) in providing services hereunder, Ensono shall take no steps that would result in: (i) D&B or any D&B products or information services which are the subject matter of this Agreement becoming subject to FCRA, or (ii) D&B becoming a consumer reporting agency; and (e) it shall not combine any D&B Information with any information about consumers or use it such that it is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for credit or insurance that is used primarily for personal, family or household purposes, for employment purposes, or for any of the other permissible purposes defined in §604 of FCRA.
		
	17.8
	Deliverables.

Ensono represents, warrants and covenants that each Deliverable produced by Ensono, or for which Ensono otherwise has responsibility for the successful completion as part of the Services, shall not, after final acceptance of the Deliverable by D&B and during the Term of this Agreement, deviate in any material respect from the specifications and requirements for such Deliverable set forth or referred to in the applicable SOW.  In the event of a breach of this Section 17.8, Ensono shall modify and/or correct such Deliverable, so that this Section is no longer breached.
		
	17.9
	Supported Technology.

Ensono represents, warrants, and covenants that it shall keep the third party Equipment and Software utilized by Ensono in providing the Services under applicable maintenance agreements, as provided by the respective vendor of each such asset.

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	17.10
	Disclaimers.

THE WARRANTIES SET FORTH IN THIS AGREEMENT (AND ANY WARRANTIES SPECIFIED IN ANY GIVEN SOW) ARE EXCLUSIVE.  OTHER THAN AS PROVIDED IN THIS AGREEMENT (OR ANY SOW HEREUNDER), THERE ARE NO EXPRESS WARRANTIES AND THERE ARE NO IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
		
	18.
	INSURANCE

		
	18.1
	Insurance Coverage.

Ensono represents that as of the Effective Date it has, and agrees that during the Term it shall maintain in force, at least the following insurance coverages in the United States:
(a)Worker’s Compensation Insurance (Coverage A), including coverage for occupational injury, illness and disease, and other social insurance in accordance with the laws of the country, state, or territory exercising jurisdiction over the employee.
(b)Employment Insurance
(i)Employer’s Liability Insurance (Coverage B) in accordance with the laws of the country, state, or territory exercising jurisdiction over the employee, with minimum limits of not less than: $*** per accident, $*** per employee - disease, and $*** per employee - policy limit.  This coverage shall be endorsed to name D&B and its Affiliates as additional insureds.
(ii)Employment Practices Liability Insurance with a minimum aggregate limit of $***.  
(c)Comprehensive General Liability Insurance, including Products, Completed Operations, Premises Operations Personal and Advertising Injury, Contractual and Broad Form Property Damage liability coverages, on an occurrence basis, with a minimum combined single limit per occurrence of $***; $***per location; and a minimum combined single aggregate limit of $***.  ISO Endorsement CGD373 (11/05) shall be included, naming D&B and its affiliates as additional insureds with respect to any legal liability of D&B arising out of the Services.
(d)Electronic Data Processing Insurance providing coverage on an “all risks” basis and include, but not be limited by, the additional perils of earthquake, flood, windstorm, terrorism, cyber-attacks including malware and denial of service attacks for loss or damage to equipment (computer systems), data, programs or software, media and valuable papers that are in the possession, care, custody or control of Ensono, including D&B’s equipment, data, programs or software, media and valuable papers.  Such insurance shall include Extra Expense and Business Income coverage including cyber-attacks that cause no physical loss or damage, coverage for 

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interruption of data services and have a minimum limit adequate to cover such risks on a replacement costs basis with no coinsurance.  This coverage shall be endorsed to schedule D&B as a loss payee as their interest may appear and schedule D&B on a waiver of subrogation endorsement.  This coverage can be included under the Ensono’s Property Insurance as long as it includes all of the above minimum required coverages.
(e)Property Insurance, including Extra Expense and Business Income coverage, for all risks of physical loss of or damage to buildings, business personal property or other property that is in the possession, care, custody or control of Ensono pursuant to this Agreement.  Such insurance shall have a minimum limit adequate to cover risks on a replacement costs basis.  This coverage shall be endorsed to name D&B and its affiliates as loss payees.
(f)Automotive Liability Insurance covering use of all owned, non-owned and hired automobiles for bodily injury, property damage, uninsured motorist and underinsured motorist liability with a minimum combined single limit *** or the minimum limit required by law, whichever limit is greater.  This coverage shall be endorsed to name D&B and its affiliates as additional insureds.
(g)Commercial Crime Insurance, including blanket coverage for Employee Dishonesty and Computer Fraud, for loss or damage arising out of or in connection with any fraudulent or dishonest acts committed by the employees of Ensono, acting alone or in collusion with others, including the property and funds of others in their possession, care, custody or control, with a minimum limit ***.  This coverage shall be endorsed to name D&B and its affiliates as loss payees.
(h)Errors and Omissions, Security and Privacy Liability Insurance covering liability for loss or damage due to an act, error, omission or negligence, the failure of technology products to perform the Services intended, damages and defense costs suffered by others for failure of Ensono’s computer network security, liability caused by a transmission of a Virus, unauthorized access, denial-of-service, disclosure of confidential information and identity theft.  Coverage will also include coverage for damages and defense cost suffered by others due to failure to protect confidential information, or the wrongful disclosure of confidential information which are not tied to a negligent act or a failure of security.  Additionally, damages should include direct expenses to a client that are related to a security or privacy event such as customer notification expenses, public relations expenses, and regulatory action defense expenses.  Coverage shall have a minimum ***. 
(i)Cyber and Privacy Insurance shall cover all work and/or services as detailed below, with limits of not less than $*** each claim.  D&B shall be scheduled as an additional insured. 
(i)If performing work or services with software, hardware, or systems development - Technology Errors & Omissions Insurance is required and shall cover: (A) systems analysis; (B) software design; (C) systems programming; (D) data processing; (E) systems integration; (F) outsourcing, including outsourcing 

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development and design; (G) systems design, consulting, development, and modification; (H) training services relating to computer software or hardware; (I) management, repair, and maintenance of computer products, networks, and systems; (J) marketing, selling, servicing, distributing, installing, and maintaining computer hardware or software; and (K) data entry, modification, verification, maintenance, storage, retrieval, or preparation of data output.
(ii)If performing work or services with direct access to the D&B systems or holding information of D&B - Network Security/-Privacy Insurance is required and shall cover: (A) hostile action or a threat of hostile action with the intent to affect, alter, copy, corrupt, destroy, disrupt, damage, or provide unauthorized access/unauthorized use of a computer system, including exposing or publicizing confidential electronic data or causing electronic data to be inaccessible; (B) computer viruses, Trojan horses, worms, and any other type of malicious or damaging code; (C) dishonest, fraudulent, malicious, or criminal use of a computer system by a person, whether identified or not, and whether acting alone or in collusion with other persons, to affect, alter, copy, corrupt, delete, disrupt, or destroy a computer system or obtain financial benefit for any party or to steal or take electronic data; (D) denial of service for which the vendor is responsible that results in the degradation of or loss of access to Internet or network activities or normal use of a computer system; (E) loss of service for which the vendor or consultant is responsible that results in the inability of a third party, which is authorized to do so, to gain access to a computer system and conduct normal Internet or network activities; (F) access to a computer system or computer system resources by an unauthorized person or an authorized person in an unauthorized manner; and (G) loss or disclosure of Personally Identifiable Information (PII) or confidential information no matter how such loss occurs.
(iii)If performing work or services to provide content, such as software code, test, or data images - Media Liability Insurance is required and shall cover: (A) infringement of copyright, title, slogan, trademark, trade name, trade dress, service mark, or service name; (B) plagiarism; (C) public disclosure or loss of misappropriated trade secrets or unauthorized use of titles, formats, performances of artists or other performers, style, charters, plots, or other program material; (D) libel, trade libel, slander, disparagement of a person, organization, or product, or other forms of defamation; (E) unauthorized disclosure of data, which results in an invasion of privacy or other invasion, infringement, or interference with the right of privacy or publicity; (F) breaches of contract that are implied in fact or in law, resulting from the alleged misuse of data; (G) false advertising or misrepresentation in advertising; and (H) errors and omissions and negligence in the production or publication of content.
(j)Umbrella Liability Insurance with a *** in excess of the insurance coverage described above in Sections 18.1(b)(i), 18.1(f) and 18.1(h) and shall be written on an occurrence basis.  The insurance coverage described above in Section 18.1(c) may be obtained through application of the Umbrella Liability Insurance policy.

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	18.2
	Insurance Provisions.

(a)The insurance coverages under Section 18.1(c) shall be primary and shall be non-contributing with respect to any other insurance or self-insurance that may be maintained by D&B.  All coverage required by Sections 18.1(b)(i) and 18.1(c) shall include a waiver of subrogation and a waiver of any insured-versus-insured exclusion in favor of D&B.  If any coverage is written on a claims-made basis, it shall have a retroactive date no earlier than the Effective Date and, notwithstanding the termination or expiration of this Agreement, either directly or through ‘tail’ coverage shall allow for reporting of claims until at least two (2) years after the date of such termination or expiration. 
(b)Ensono shall cause its insurers to issue certificates of insurance evidencing that the coverages and policy endorsements required under this Agreement are maintained in force and shall endeavor to provide (i) not less than thirty (30) days’ notice to D&B prior to any cancellation of the policies, and (ii) not less than *** days’ notice for cancellation for non-payment of premium; provided, however, that with regard to the Commercial Crime Insurance, Ensono shall cause its insurer to endeavor to provide no less than *** days’ notice to D&B prior to any cancellation.  Ensono shall provide D&B with thirty (30) days’ notice of any adverse modification to a policy required by Section 18 of this Agreement.  The insurers selected by Ensono shall have an A.M. Best rating of “A-” or better, or, if such ratings are no longer available, with a comparable rating from a recognized insurance rating agency.  The form of the required insurance certificate is attached hereto as Schedule S.
(c)In the case of loss or damage or other event that requires notice or other action under the terms of any insurance coverage specified in this Section 18, Ensono shall be solely responsible to take such action.  Ensono shall provide D&B with contemporaneous notice and with such other information as D&B may reasonably request regarding the event if related to the Services provided to D&B.
(d)Ensono’s obligation to maintain insurance coverage shall be in addition to, and not in substitution for, Ensono’s other obligations hereunder and Ensono’s liability to D&B for any breach of an obligation under this Agreement which is subject to insurance hereunder shall not be limited to the amount of coverage required hereunder.
(e)If Ensono provides Services to D&B outside of the United States, pursuant to an SOW hereunder, then Ensono shall use Commercially Reasonable Efforts to obtain insurance coverages in such other jurisdictions which are (i) similar to those provided in this Article 18; (ii) compliant with Applicable Laws and Regulations; and (iii) consistent with the Services provided by Ensono to D&B in such jurisdiction (as reflected in the applicable SOW).

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	19.
	INDEMNITIES

		
	19.1
	Indemnity by Ensono.

Ensono shall indemnify, defend and hold harmless D&B and its Affiliates and their respective officers, directors, employees, agents, successors and assigns from and against any and all Losses and threatened Losses arising from, in connection with, or based on allegations whenever made of, any of the following:
(a)Ensono’s failure to observe or perform any duties or obligations to be observed or performed on or after the effective date of the Original GMSA by Ensono under any of the contracts, including Software licenses, Equipment leases and Third Party Service Contracts, assigned to Ensono or for which Ensono has assumed financial, administrative or operational responsibility;
(b)Any claims of infringement or misappropriation of any patent, trade secret, copyright or other proprietary rights, alleged to have occurred because of systems or other resources provided by Ensono to D&B, or based upon performance of the Services by Ensono;
(c)Any claims related to whether Ensono is the owner of, or authorized to Use: (i) the Software utilized pursuant to Sections 8.2 and/or 8.3 and/or (ii) the Software developed by Ensono as part of the Services pursuant to Section 8.4; 
(d)Any claim or action by, on behalf of, or related to, any employee of Ensono, its Affiliates, or any Ensono subcontractor, including claims arising under occupational health and safety, worker’s compensation, ERISA, or other applicable federal, state, or local laws or regulations;
(e)Any amounts including taxes, interest, and penalties assessed against D&B which are obligations of Ensono pursuant to Section 14.10 or any SOW under this Agreement;
(f)The inaccuracy or untruthfulness of any representation or warranty made by Ensono pursuant to Section 16.9 or Article 17;
(g)Any claim or action by subcontractors arising out of Ensono’s breach or violation of Ensono’s subcontracting arrangements;
(h)Any claim or action arising out of:
(i)a violation of Applicable Laws and Regulations for the protection of persons or members of a protected class or category of persons by Ensono or its employees, subcontractors or agents; and/or
(ii)sexual discrimination or harassment by Ensono, its employees, subcontractors or agents, or work-related injury or death caused by 

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Ensono, its employees, subcontractors, or agents (except to the extent covered by D&B’s worker’s compensation coverage);
(i)Any claim or action by any employee or contractor of Ensono or its subcontractors that D&B is liable to such person as the employer or joint employer of such person, including any claim for employee benefits as a result thereof;
(j)A *** breach arising out of or relating to: (i) a failure of Ensono to comply with its *** obligations provided in this Agreement, or (ii) an Ensono failure to use Commercially Reasonable Efforts to conform with industry practices followed by other well-managed operations providing services similar to the Services; and 
(k)Any claims that D&B has breached Applicable Laws and Regulations due to Ensono’s failure to process D&B Information in accordance with the terms of this Agreement or Ensono’s use of D&B Information in a manner not expressly permitted by this Agreement.
		
	19.2
	Indemnity by D&B.

D&B shall indemnify, defend and hold harmless Ensono and its Affiliates and their respective officers, directors, employees, agents, successors and assigns from any and all Losses and threatened Losses arising from, in connection with, or based on allegations whenever made of, any of the following:
(a)D&B’s failure to observe or perform any duties or obligations to be observed or performed prior to the effective date of the Original GMSA by D&B, under any of the contracts, including Software licenses, Equipment leases and Third Party Service Contracts, assigned to Ensono or for which Ensono has assumed financial, administrative or operational responsibility;
(b)Any claims of infringement or misappropriation of any patent, trade secret, copyright or other proprietary rights, alleged to have occurred because of systems or other resources provided to Ensono by D&B;
(c)Any claim or action (i) by, on behalf of, or related to, any employee of D&B, its affiliates, or any D&B subcontractor, including claims arising under occupational health and safety, worker’s compensation, ERISA or other applicable federal, state, or local laws or regulations; (ii) arising out of a violation of Federal, state, or other laws or regulations for the protection of persons or members of a protected class or category of persons by D&B or its employees, subcontractors or agents; (iii) arising out of discrimination or harassment by D&B, its employees, subcontractors or agents; or (iv) arising out of work-related injury or death caused by D&B, its employees, subcontractors, or agents (except to the extent covered by Ensono’s worker’s compensation coverage); provided that the foregoing shall not include any claim or action that is caused by an employee of Ensono, its affiliates, or any Ensono subcontractor;

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(d)Any amounts including taxes, interest, and penalties assessed against Ensono which are obligations of D&B pursuant to Section 14.10 or any SOW under this Agreement; 
(e)Any claim or action by any employee or contractor of D&B or its Affiliates or subcontractors that Ensono is liable to such person as the employer or joint employer of such person, including any claim for employee benefits as a result thereof other than claims under the Transfer Regulations (Schedule O);
(f)Any third party claims that Ensono has breached Applicable Laws and Regulations by processing D&B Information provided to Ensono by D&B for processing, provided Ensono processes such D&B Information in accordance with the terms of this Agreement and does not process or use such D&B Information for any purpose not expressly permitted under this Agreement; and 
(g)The inaccuracy or untruthfulness of any representation or warranty made by D&B pursuant to Article 17.
		
	19.3
	Additional Indemnities.

Each party (indemnitor) agrees to indemnify, defend and hold harmless the other, and its Affiliates, officers, directors, employees, agents, successors, and assigns (collectively, the indemnitee), from any and all Losses and threatened Losses arising from, in connection with, or based on allegations whenever made of, the death or bodily injury of any agent, employee (other than an employee of the indemnitor), customer, business invitee, or business visitor or other person caused by the tortious conduct of the indemnitor (except to the extent that the indemnitor is considered a ‘special employer’ under applicable worker’s compensation laws and such laws offer liability limitation); and the damage, loss or destruction of any real or tangible personal property caused by the tortious conduct of the indemnitor.
		
	19.4
	Infringement Where Ensono is Indemnitor.

If any Deliverable or any item used by Ensono to provide the Services becomes, or in Ensono’s reasonable opinion is likely to become, the subject of an infringement or misappropriation claim or proceeding, in addition to indemnifying D&B as provided in this Article 19 and to the other rights D&B may have under this Agreement, Ensono shall promptly take the following actions, at no additional charge to D&B, in the listed order of priority:
(a)promptly secure the right at Ensono’s expense to continue using the item, or
(b)if the foregoing cannot be accomplished with Commercially Reasonable Efforts, then at Ensono’s expense, replace or modify the item to make it non-infringing or without misappropriation, provided that any such replacement or modification will not degrade the performance or quality of the affected component of the Services, or

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(c)if neither of the foregoing can be accomplished by Ensono with Commercially Reasonable Efforts, and only in such event, remove the item from the Services, in which case (i) the Charges (or other applicable charges or fees) shall be equitably adjusted to reflect such removal and/or (ii) in the case of the removal of any portion of a Deliverable or Developed D&B Materials the Charges and fees paid by D&B with respect to the removed portion of the Deliverable or Developed D&B Materials shall be refunded to D&B.  Additionally, if in D&B’s reasonable opinion such removal is material to all or any portion of the remaining Services, D&B may terminate such portion of the affected Services, the related SOW, or the entire Agreement, as the case may be, without penalty or charge.
		
	19.5
	Infringement Where D&B is Indemnitor.

If any item provided by D&B to be used by Ensono to provide the Services becomes, or in D&B’s reasonable opinion is likely to become, the subject of an infringement or misappropriation claim or proceeding, in addition to indemnifying Ensono as provided in this Article 19 and to the other rights D&B or Ensono may have under this Agreement, D&B shall, at no additional charge to Ensono, take one or more or of the following action(s); provided that D&B may elect at its option and in its sole discretion which of the following action(s) to take:
(a)promptly secure the right at D&B’s expense to continue using the item; or
(b)at D&B’s expense, replace or modify the item to make it non-infringing or without misappropriation, provided that any such replacement or modification will not degrade the performance or quality of the affected component of the Services; or remove the item from the Services, in which case the Charges (or other applicable charges or fees) shall be equitably adjusted to reflect such removal, and Ensono shall use Commercially Reasonable Efforts to perform the Services notwithstanding the removed item (with D&B being responsible to reimburse Ensono for its additional Out-of-Pocket Expenses and for reasonably related work charged pursuant to the T&M Rates for such efforts); or 
(c)terminate this Agreement in its entirety or terminate the related SOW in its entirety, pursuant to Section 23.4.
		
	19.6
	Indemnification Procedures.

With respect to third party claims the following procedures shall apply:
(a)Notice.  Promptly after receipt, by any entity entitled to indemnification under Sections 19.1 through 19.3, of notice of the assertion or the commencement of any action, proceeding or other claim by a third party in respect of which the indemnitee will seek indemnification pursuant to any such Section, the indemnitee shall promptly notify the indemnitor of such claim in writing.  No failure to so notify an indemnitor shall relieve it of its obligations under this Agreement, except to the extent that it can demonstrate damages attributable to such failure.  Within fifteen (15) days after receipt of notice from the indemnitee relating to any claim, but 

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no later than ten (10) days before the date on which any response to a complaint or summons is due, the indemnitor shall notify the indemnitee in writing if the indemnitor acknowledges without reservation its indemnification obligation and elects to assume control of the defense and settlement of that claim (a “Notice of Election”).
(b)Procedure Following Notice of Election.  If the indemnitor delivers a Notice of Election relating to any claim within the required notice period, the indemnitor shall be entitled to have sole control over the defense and settlement of such claim, which it shall defend actively and with all reasonable diligence; provided that (i) the indemnitee shall be entitled to participate in the defense of such claim and to employ counsel at its own expense to assist in the handling of such claim; and (ii) the indemnitor shall obtain the prior written approval of the indemnitee before entering into any settlement of such claim or ceasing to defend against such claim.  After the indemnitor has delivered a Notice of Election relating to any claim in accordance with the preceding paragraph (and, in fact, diligently defends the claim), the indemnitor shall not be liable to the indemnitee for any legal expenses incurred by the indemnitee in connection with the defense of that claim.  In addition, the indemnitor shall not be required to indemnify the indemnitee for any amount paid or payable by the indemnitee in the settlement of any claim for which the indemnitor has delivered a timely Notice of Election if such amount was agreed to without the consent of the indemnitor.
(c)Procedure Where No Notice of Election Is Delivered Or The Claim Is Not Otherwise Defended.  If the indemnitor does not deliver a Notice of Election relating to a claim, or otherwise fails to (i) acknowledge its indemnification obligation, (ii) assume the defense of a claim within the required notice period, or (ii) diligently defend the claim, the indemnitee may defend the claim in such manner as it may deem appropriate (without any obligation to consult with or obtain any consent from the indemnitor), at the cost, expense, and risk of the indemnitor, including payment of any judgment or award and the costs of settlement or compromise of the claim.  The indemnitor shall promptly reimburse the indemnitee for all such costs and expenses, including payment of any judgment or award and the costs of settlement or compromise of the claim.  If it is determined that the indemnitor failed to defend a claim for which it was liable, the indemnitor shall not be entitled to challenge the amount of any settlement or compromise paid by the indemnitee.
		
	19.7
	Subrogation.

If an indemnitor shall be obligated to indemnify an indemnitee pursuant to this Article 19, the indemnitor shall, upon fulfillment of its obligations with respect to indemnification, including payment in full of all amounts due pursuant to its indemnification obligations, be subrogated to the rights of the indemnitee with respect to the claims to which such indemnification relates, except to the extent an insurance policy specified by this Agreement applies to a claim and requires to the contrary.

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	20.
	LIABILITY

		
	20.1
	General Intent.

Subject to the specific provisions of this Article 20, it is the intent of the parties that each party shall be liable to the other party for any actual damages incurred by the non-breaching party as a result of the breaching party’s failure to perform its obligations in the manner required by this Agreement.
		
	20.2
	Liability Restrictions.

(a)SUBJECT TO SECTION 20.2(c), IN NO EVENT, WHETHER IN CONTRACT, IN TORT (INCLUDING BREACH OF WARRANTY, NEGLIGENCE AND STRICT LIABILITY IN TORT), OR OTHERWISE, SHALL A PARTY BE LIABLE TO THE OTHER PARTY (OR ANYONE CLAIMING UNDER OR THROUGH THE OTHER PARTY) FOR INDIRECT OR CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES ARISING OUT OF, RESULTING FROM, OR IN ANY WAY CONNECTED WITH THE PERFORMANCE OR BREACH OF THIS AGREEMENT OR ANY APPLICABLE SOW, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE.
(b)Subject in each instance to Section 20.2(c), the parties hereby agree to the following provisions: 
(i)Each party’s total liability to the other, whether in contract, in tort (including breach of warranty, negligence and strict liability in tort), or otherwise arising out of, resulting from, or in any way connected with, the performance or breach of this Agreement or any applicable SOW hereunder (other than SOW No. 9 to this Agreement) shall be limited to an amount equal ***. 
(ii)With regard to SOW No. 9 to this Agreement, each party’s total liability to the other, whether in contract, in tort (including breach of warranty, negligence and strict liability in tort), or otherwise arising out of, resulting from, or in any way connected with, the performance or breach of SOW No. 9 to this Agreement or SOW No. I-9 to the IMSA shall be limited to an amount equal ***.
(c)The limitations set forth in Sections 20.2(a) and 20.2(b) shall not apply with respect to:
(i)damages occasioned by the willful misconduct or gross negligence of a party;
(ii)[Intentionally Omitted]; 
(iii)Losses payable to third parties (and reasonable costs of defense) arising from claims that are the subject of indemnification pursuant this Agreement, including Article 19; provided however, that with respect to claims that are the subject of indemnification pursuant to Section 19.1(j) hereunder, the limitations in Section 20.2(b) shall apply with the following modifications: the *** 

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limitations in Sections 20.2(b)(i) and 20.2(b)(ii) shall be replaced by *** limitations (***); and with respect to (I) claims that are the subject of indemnification pursuant to Section 19.1(f) hereunder, and (II) to the extent such indemnity obligation is with respect to a breach of Section 17.1, 17.5, 17.6, 17.8, and/or 17.9 of this Agreement, and (III) such breach is a cause of or constitutes a physical and/or data security control breach pursuant to Section 19.1(j), then the limitations in Section 20.2(b) shall apply with the following modifications: the *** limitations in Sections 20.2(b)(i) and 20.2(b)(ii) shall be replaced by *** limitations (***);
(iv)damages occasioned by Ensono’s breach of *** of this Agreement;
(v)damages occasioned by a party’s breach of its obligations ***;
(vi)damages (A) ***, or (B) incurred with respect to ***; and damages occasioned by Ensono’s (A) *** or (B) ***.
(d)The following shall be considered direct damages shall not be considered consequential damages to the extent they result from a party’s failure to fulfill its obligations in accordance with this Agreement:
(i)costs of recreating or reloading any of D&B’s information that is lost or damaged;
(ii)costs of implementing a workaround in respect of a failure to provide the Services;
(iii)costs of replacing lost or damaged equipment and software and materials;
(iv)costs and expenses incurred to correct errors in software maintenance and enhancements provided as part of the Services;
(v)costs and expenses incurred to procure the Services from an alternate source; *** incurred due to the failure of Ensono to provide the Services or incurred in connection with (i) through (iv) above.
(e)If a breach of this Agreement occurs after termination/-expiration, in determining the amount of the applicable limitation of liability, the amount in effect on the date of termination/-expiration shall apply as if the claim had been made on that date.
(f)Each party shall have a duty to mitigate damages for which the other party is responsible.

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	20.3
	Force Majeure.

(a)Neither party shall be liable for any default or delay in the performance of its obligations under this Agreement (other than the obligation to pay amounts due hereunder): (i) if and to the extent such default or delay is caused, directly or indirectly, by fire, flood, earthquake, terrorism, elements of nature or acts of God, riots, pestilence, civil disorders, governmental orders under the Defense Production Act, or any other cause beyond the reasonable control of such party, (ii) provided the non-performing party is without fault in causing such default or delay, and such default or delay could not have been prevented by reasonable precautions and could not reasonably be circumvented by the non-performing party through the use of alternate sources, workaround plans or other means (including, with respect to Ensono, by Ensono meeting its obligations for performing disaster recovery services as provided in this Agreement, including Schedule A to the relevant SOW) (each such event, a “Force Majeure Event”).
(b)For the avoidance of doubt, no Force Majeure Event will excuse Ensono performance with respect to disaster recovery obligations except to the extent the event affected Ensono’s disaster recovery operations.
(c)In such event the non-performing party shall be excused from further performance or observance of the obligations so affected for as long as such circumstances prevail and such party continues to use best efforts to recommence performance or observance without delay; provided however, that if Ensono is the non-performing party, then commencing immediately at such time that Ensono is excused from performance of any Services pursuant to this Section, and continuing for as long as such circumstances prevail and Ensono continues to use Commercially Reasonable Efforts to recommence performance or observance without delay, then: (i) D&B shall not be responsible for payment to Ensono for excused Services, and (ii) D&B may procure such excused Services from an alternate source.  Any party so delayed in its performance shall immediately notify the party to whom performance is due by telephone (to be confirmed in writing within twenty-four (24) hours of the inception of such delay) and describe at a reasonable level of detail the circumstances causing such delay.
(d)If (i) any Force Majeure Event substantially prevents, hinders or delays performance of the Services necessary for the performance of functions reasonably identified by D&B as critical for more than *** (or any material portion of the Services for more than ***, or (ii) any Force Majeure Event occurs that is covered by a disaster recovery plan and Ensono fails to execute upon the applicable disaster recovery plan, then at D&B’s option:
(i)D&B may procure such Services from an alternate source, and Ensono shall be liable for payment for the incremental cost of such Services from the alternate source for so long as the delay in performance shall continue; provided that after such alternate source begins to provide the Services, Ensono may notify D&B in writing at any time that Ensono elects not to continue paying such incremental costs.  After D&B receives any such notice from Ensono, Ensono shall 

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continue to pay such incremental costs, for such period of time that is the lesser of: (A) *** from D&B’s receipt of such Ensono notice, or (B) ***.  Upon the termination of Ensono’s payments (as provided in the previous sentence), such Services shall be deemed terminated hereunder, at no-cost or charge to D&B; or
(ii)D&B may terminate this Agreement, at no-cost or charge and without liability on either party’s part, as of a date specified by D&B in a notice of termination; provided that D&B may not provide any such notice of termination after such time, if any, that Ensono has substantially restored the affected Services.
(e)Ensono shall not have the right to any additional payments from D&B for costs or expenses incurred by Ensono as a result of any Force Majeure Event.
		
	20.4
	No Exemptions.

The parties acknowledge that the Amount at Risk (as provided in the applicable SOW) and the limit of liability hereunder are intended to be multiples of (and/or based upon) the total charges payable by D&B under the applicable SOW and under this Agreement, respectively.  As such, any Ensono proposal for New Services or project work during the Term (including change orders or any work to be provided pursuant to a SOW hereunder) shall not include assumptions or conditions excepting the charges for such proposed New Services or project work from the Amount at Risk pursuant to an SOW and/or the applicable limit of liability hereunder, as such an exception goes against the intent of the parties.
		
	21.
	ENSONO FINANCIAL REQUIREMENTS

		
	21.1
	Pre-eminence of these provisions over any other provision of the Agreement; Time of the Essence.

The provisions of this Section 21 supersede and control over any conflicting provisions in any other portion of this Agreement and any SOW or other document.  Time shall be of the essence in all provisions of this Section 21.  
		
	21.2
	Ensono Reporting Obligations regarding Breaches of, and Notices Under, Loan Agreements.

(a)Within *** of:
(i)Ensono’s (or any Ensono Affiliate’s (disregarding, for this Section only, the last sentence of the definition of Affiliate in Section 2.1(f))) receipt of a notice from a lender under *** (a “Loan Agreement”), that Ensono (or the Ensono Affiliate which is the party to the Loan Agreement) is *** under any Loan Agreement; or
(ii)Ensono (or any Ensono Affiliate) providing a notice to any lender under any Loan Agreement that Ensono (or any Ensono Affiliate) is *** under, any Loan Agreement.

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Ensono shall provide a copy of such notice to D&B in accordance with the provisions of Section 26.4 as well as by emailing a copy of such notice to both D&B’s Chief Content and Technology Officer and its General Counsel, with a “Re” clause of “IMPORTANT NOTICE FROM ENSONO REQUIRING ACTION”.  Any such notice is referred herein as a “Loan Agreement Default Notice”.  
(b)Failure of Ensono to perform the obligations under this Section 21.2 with respect to *** shall be deemed a material breach if delayed more than a total of *** (including the *** provided above) after receipt.  Ensono represents that Schedule P contains a true and correct copy of such provisions from the Loan Agreements as of the Effective Date.  Upon the occurrence of such material breach, D&B may terminate this Agreement and any SOWs ***, provided, however, that such right to terminate with respect to the instance giving rise to the right to terminate shall be cancelled and the material breach shall be deemed cured if (x) Ensono cures the basis upon which the Loan Agreement Default Notice was given (or should have been given) and (y) such cure was prior to D&B having given notice of termination.  
		
	21.3
	Meetings of the Parties Following a Loan Agreement Default Notice.

(a)Promptly (but unless otherwise agreed by D&B no later than *** following delivery of a Loan Agreement Default Notice, ***, shall meet with those members of D&B’s senior management team as D&B may designate (either by telephone or in person at D&B’s offices, as D&B may designate) for Ensono to ***.  Such discussions shall also include ***. 
(b)Failure of Ensono to perform the obligations under this Section 21.3 shall be a material breach of this Agreement, which Ensono shall have *** to cure following Ensono’s receipt of written notice from D&B describing such failure in reasonable detail (such notice to include a specific reference to this Section and the ***.
		
	21.4
	D&B Right To Terminate.

If, following the discussions provided for in Section 21.3, (i) D&B is ***, and (ii) Ensono fails to cure (or provide a plan reasonably likely to cure) the basis upon which the Loan Agreement Default Notice was given within ***, D&B may terminate this Agreement and any SOWs ***; provided that, in such event:
(a)Subject to Section 21.4(b), D&B shall be obligated to pay Ensono *** of the amount of the Termination For Convenience Charge that would have been payable as of the effective date of termination had D&B’s termination been for convenience pursuant to Section 23.4.  ***.
(b)If, the termination by D&B pursuant to this Section 21.4 is (i) based on a Red Event (as hereinafter defined) or (ii) if, prior to the effective date of termination of this Agreement and any SOWs pursuant to this Section 21.4, (A) a Chronic or Extreme Service Level Failure (as defined in Section 10.2(b)) or (B) a Red Event occurs, D&B shall ***.

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(c)D&B’s right to terminate as described in Section 21.4(a) and Section 21.4(b) shall be cancelled with respect to the particular instance giving rise to the right to terminate if (x) Ensono cures the basis upon which the Loan Agreement Default Notice was given, (y) such cure was prior to D&B having given notice of termination, and (z) D&B had not been granted a right to terminate pursuant to Section 21.4(a) or 21.4(b) more than *** in the immediately preceding ***.  In the event that D&B’s right to terminate is not cancelled because the condition in (z) above was not satisfied, the applicable termination right shall remain until the date *** following the date Ensono cures the basis upon which the applicable Loan Agreement Default Notice was given. 
		
	21.5
	Step-In Rights.

(a)If, following the discussions provided for in Section 21.3 (i) (x) ***, and (y) Ensono fails to cure (or provide a plan reasonably likely to cure) the basis upon which the Loan Agreement Default Notice was given within *** and (ii) Chronic or Extreme Service Level Failures (as defined in Section 10.2(b)) have occurred D&B shall have Step In Rights (as defined in Section 21.7); provided, however, that D&B’s right to exercise Step In Rights shall be cancelled if (x) Ensono cures the basis upon which the Loan Agreement Default Notice was given and (y) such cure was prior to D&B (A) notifying Ensono that intends to exercise such Step In Rights and/or (B) having given notice of termination pursuant to Section 21.4.
(b)The provisions of this Section 21.5 are independent of D&B’s rights under Section 21.6 and D&B may exercise either or both without the same constituting an election of remedies. 
		
	21.6
	“Red” Events.

(a)Ensono represents and warrants to D&B that Schedule P is a true and accurate copy of ***.  If such *** are changed (either with existing or new lenders) Ensono shall provide a copy thereof to D&B *** within *** of the change.  Upon D&B’s receipt of the new ***, such new *** shall be deemed the *** hereunder.  
(b)If, following the discussions provided for in Section 21.3, (i) (x) *** and (y) Ensono fails to cure (or provide a plan reasonably likely to cure) the basis upon which the Loan Agreement Default Notice was given within *** and (ii) the Loan Agreement Default Notice was based on ***, a “Red Event” will be deemed to have occurred; provided, however, that such Red Event shall be deemed cancelled if (i) (x)Ensono cures the basis upon with Loan Agreement Default Notice was given and (y) no new conditions which would require a separate Loan Agreement Default Notices have occurred and (ii) such cure was prior to D&B having given Ensono notice of termination pursuant to Section 21.4.
(c)The provisions of this Section 21.6 are independent of D&B’s rights under Section 21.5 and D&B may exercise either or both without the same constituting an election of remedies. 

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	21.7
	Step In Rights.

(a)Where this Agreement provides that D&B has Step In Rights, D&B shall have the right to be involved in provisions of the Services, which shall include Ensono allowing ***:
(i)*** of systems dedicated to D&B;
(ii)The right for D&B to *** (i) wholly as to dedicated systems and (ii) subject to Ensono’ reasonable discretion as necessary to protect its other customers with respect to shared systems and decisions that may adversely affect other Ensono customers; 
(iii)D&B personnel have on site access to ***, subject to being escorted and reasonable and customary safety and security requirements; and
(iv)Ensono shall provide D&B with *** to the extent reasonably necessary for D&B to exercise its rights hereunder.  
(b)Beginning no later than *** after the Effective Date (or, if sooner, immediately if D&B has Step In Rights pursuant to this Article 21) Ensono shall use Commercially Reasonable Efforts ***.
(c)D&B shall have the right to ***.  
		
	22.
	DISPUTE RESOLUTION

Any dispute between the parties arising out of or relating to this Agreement or any SOW, including with respect to the interpretation of any provision of this Agreement or any SOW and with respect to the performance by Ensono or D&B, shall be resolved as provided in this Article 21.
		
	22.1
	Informal Dispute Resolution.

(a)Subject to Sections 22.1(b) and 22.1(c), the parties initially shall attempt to resolve their dispute informally, in accordance with the following:
(i)Upon the notice by a party to the other party of a dispute (“Dispute Date”), each party shall appoint a designated representative who does not devote substantially all of his or her time to performance under this Agreement or such SOW, as applicable, whose task it will be to meet for the purpose of endeavoring to resolve such dispute.
(ii)The designated representatives shall meet as often as the parties reasonably deem necessary in order to gather and furnish to the other all information with respect to the matter in issue which the parties believe to be appropriate and germane in connection with its resolution.  The representatives shall discuss the problem and attempt to resolve the dispute without the necessity of any formal proceeding.

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(iii)During the course of discussion, all reasonable requests made by a party to the other for non-legally privileged information reasonably related to this Agreement shall be honored in order that a party may be fully advised of the other’s position.
(iv)The specific format for the discussions shall be left to the discretion of the designated representatives.
(b)After twenty-five (25) days following the Dispute Date and prior to commencement of any litigation as permitted under Section 22.1(c), either party may initiate mediation of the dispute by submitting to the American Arbitration Association (“AAA”) and to the other party a written request for mediation, setting forth the subject of the dispute and the relief requested.  The parties shall cooperate with AAA and each other in the mediation process.  The mediation shall be conducted in accordance with the AAA Commercial Mediation Procedures.  Upon commencement of litigation as permitted under Section 22.1(c), either party, upon notice to AAA and to the other party, may terminate the mediation process.  Each party shall bear its own expenses in the mediation process and shall share equally the charges of AAA.
(c)Either party may file legal proceedings to resolve such dispute, upon the earlier to occur of any of the following:
(i)the designated representatives mutually conclude that amicable resolution through continued negotiation of the matter does not appear likely; or thirty-five (35) days have elapsed from the Dispute Date if neither party has requested mediation under Section 22.1(b), or
(ii)sixty (60) days have elapsed from the Dispute Date if either party has requested mediation within thirty (30) days after the Dispute Date (these periods shall be deemed to run notwithstanding any claim that the process described in this Section 22.1 was not followed or completed).
(d)Notwithstanding the previous in this Section 22.1, either party will have the right to apply at any time to a judicial authority for appropriate injunctive relief (or other interim or conservatory measures), including (i) as provided in Section 23.11, (ii) if a party makes a good faith determination that a breach of this Agreement by the other party is such that a temporary restraining order or other injunctive relief is necessary, or (iii) to avoid the expiration of an applicable limitations period or to preserve a superior position with respect to other creditors.  The informal dispute resolution procedure described above in these Sections 22.1(a) and 22.1(b) shall not be suspended due to any party’s commencing litigation, as provided in this Section 22.1(d).
		
	22.2
	Litigation.

For all litigation which may arise with respect to this Agreement, the parties irrevocably and unconditionally submit (i) to the non-exclusive jurisdiction and venue (and waive any claim of forum non conveniens and any objections as to laying of venue) of the United States District Court for the Southern District of New York or

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(ii) if such court does not have subject matter jurisdiction, to the Supreme Court of the State of New York, New York County in connection with any action, suit or proceeding arising out of or relating to this Agreement.  The parties further consent to the jurisdiction of any state court located within a district that encompasses assets of a party against which a judgment has been rendered for the enforcement of such judgment or award against the assets of such party.  Each party waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by certified or registered mail directed to such party at such party’s address provided for purposes of notices hereunder.  Service of process in any suit must be effectuated within thirty (30) days after commencement of such suit.
		
	22.3
	Continued Performance.

Except as otherwise directed by the other party, each party shall continue performing its obligations under this Agreement while a dispute is being resolved except (and then only) to the extent the issue in dispute precludes performance (a good faith dispute over payment shall not be deemed to preclude performance) and without limiting either party’s right to terminate this Agreement (or an SOW hereunder) as provided in Article 23.  In the event of a breach of this obligation (in addition to all other remedies and rights and without the same constituting an election of remedies) D&B shall be entitled to seek and obtain injunctive relief, without posting bond or proving damages, in addition to all other remedies.
		
	22.4
	Injunctive Relief; Specific Performance.

Each of the parties acknowledges that the other party would be irreparably damaged if any of the provisions of Articles/Sections 12, 16, 21.5, 23.10 or 24 of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  Accordingly, each of the parties agrees that they shall each be entitled to an injunction or injunctions to prevent breaches of such provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions thereof, in any action instituted in any court of the United States or any state or jurisdiction having subject matter jurisdiction, in addition to any remedy to which such party may be entitled, at law or in equity.  
		
	22.5
	Governing Law.

(a)This Agreement and performance under it shall be governed by and construed in accordance with the following:
(i)With respect to United States-related disputes, the law of the State of New York without regard to any portion of its choice of law principles (whether those of New York or any other jurisdiction) that might provide for application of a different jurisdiction’s law.  The parties expressly intend to avail themselves of the benefit of Section 5-1401 of the New York General Obligations Law; or

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(ii)With respect to non-United States-related disputes, the local law applicable to the jurisdiction in which the dispute arises; provided however, that with respect to any non-United States-related dispute, the non-claiming party shall have the right to transfer the dispute to the United States, where the dispute shall be governed by and construed in accordance with the law of the State of New York (in accordance with Section 22.5(a)(i) above).
(b)To the maximum extent permitted under applicable law, the parties disclaim and none of the agreement shall be subject to the uniform computer information transactions act (“UCITA”) (prepared by the national conference of commissioners on uniform state laws) as currently enacted or as may be enacted, codified or amended from time to time by any jurisdiction.  To the extent that any aspect of this Agreement or any license granted under this Agreement is unclear or disputed by the parties and UCITA, if applied, would clarify such license or resolve such dispute, the parties agree to clarify such license or resolve such dispute independently of UCITA by applying the intent of the parties at the time that they entered this Agreement.
(c)The United Nations Convention on the International Sale of Goods shall not apply to this Agreement, and patents to the United Nations Convention shall be disclaimed.
		
	22.6
	Limitation of Actions.

Any action brought by either party against the other or its Affiliates arising out of, resulting from, or in any way connected with, this Agreement shall be brought within four (4) years of the date the right, claim, demand, or cause of action accrued and service of process in such action shall be effectuated within the earlier of the latest date permitted by law and thirty (30) days after the date of commencement of the proceeding.  Claims for third party indemnity shall be deemed to accrue when the third party claim is received.
		
	23.
	TERMINATION

		
	23.1
	Agreement Termination for Cause.

(a)If Ensono:
(i)commits a material breach of this Agreement which is capable of being cured within thirty (30) days after notice of breach from D&B to Ensono, and is not cured in such thirty (30) day period;
(ii)commits a material breach of this Agreement which is not capable of being cured within thirty (30) days after notice of breach from D&B to Ensono but is capable of being cured within sixty (60) days after such notice and fails to (A) proceed promptly and diligently to correct the breach, (B) develop within thirty (30) days after such notice a complete plan for curing the breach, and (C) cure the breach within sixty (60) days after such notice;

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(iii)commits a material breach of this Agreement that is not subject to cure with due diligence within sixty (60) days after notice of breach from D&B to Ensono;
(iv)breaches the representation and/or warranty set forth in Section 17.7; or commits numerous breaches of its duties or obligations (whether or not individually material) which collectively constitute a material breach of this Agreement, and does not cure such breaches within thirty (30) days after the single notification of such numerous breaches from D&B to Ensono; provided however, that if Ensono does cure such breaches (or D&B elects not to terminate), then any single, similar breach occurring at any time within three (3) months after such cure shall be deemed to be material, then D&B may, by giving notice to Ensono, terminate this Agreement, in whole or in part and at no-cost or charge, as of a date specified in the notice of termination.  Any termination by D&B for breach shall not constitute an election of remedies and shall be without prejudice as to D&B’s other rights resulting therefrom.
(b)If D&B fails to pay Ensono, when due, undisputed Charges totaling at least the aggregate of the sum of *** under all of the SOWs hereunder, and fails to make such payment within *** after the due date of the last invoice, including amounts within such *** portion of such Charges, then Ensono may by giving notice to D&B terminate this Agreement, including some or all of the SOWs, as of a date specified in the notice of termination which is at least *** thereafter, unless D&B cures such non-payment before the expiration of such *** notice period.  ***.  
(c)Notwithstanding anything to the contrary in this Agreement and for the avoidance of doubt, it is expressly understood by the parties that a right of termination that arises as a result of an uncured breach of a specific SOW does not, in and of itself, give rise to an automatic right of termination of this Agreement, and that only the uncured breach(es) of this Agreement will give rise to a right of termination of this Agreement under this Section 23.1.
		
	23.2
	SOW Termination for Cause by D&B.

D&B may, by giving written notice to Ensono, terminate a specific SOW hereunder, in whole or in part and at no-cost or charge, as of a date specified in the notice of termination, if Ensono:
(a)commits a material breach of such SOW, as applicable, that is capable of being cured within thirty (30) days after notice of breach from D&B to Ensono, and is not cured in such thirty (30) days day period;
(b)commits a material breach of a specific SOW, as applicable, that is not capable of being cured within thirty (30) days after notice of breach from D&B to Ensono, but is capable of being cured within sixty (60) days after such notice and Ensono fails to (A) proceed promptly and diligently to correct the breach; (B) develop within thirty (30) days after such notice a complete plan for curing the breach; and (C) cure the breach within sixty (60) days after such notice;

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(c)commits a material breach of a specific SOW that is not subject to cure with due diligence within sixty (60) days after notice of breach from D&B to Ensono;
(d)commits numerous breaches of its duties or obligations (whether or not individually material) under a specific SOW which collectively constitute a material breach of such SOW, and does not cure such breaches within thirty (30) days after the single notification of such numerous breaches from D&B to Ensono; provided however, that if Ensono does cure such breaches (or D&B elects not to terminate), then any single, similar breach occurring at any time within three (3) months after such cure shall be deemed to be material; or does not cure its failure to achieve a Major Milestone within the applicable time period(s) by which Ensono must cure any such failure (as provided in an SOW hereunder); or
(e)Commits a material breach of this Agreement that another provision of this Agreement provides (i) is a material non-curable breach or (ii) is a material breach whose cure must occur in a specific time and fails to cure within the period of time provided in such a provision (following notice from D&B if so required), subject in each instance to the cancellation of such termination right in the applicable termination provision.
		
	23.3
	SOW Termination for Cause by Ensono.

If D&B fails to pay Ensono when due undisputed Charges totaling at least *** under such SOW, as applicable, and fails to make such payment within *** after the due date of the last invoice including amounts within such ***, then Ensono may, by giving written notice to D&B, terminate a specific SOW hereunder, as of a date specified in the notice of termination which is at least *** thereafter, unless D&B cures such non-payment before the expiration of such *** notice period.
		
	23.4
	Termination For Convenience.

(a)Termination of this Agreement and SOW #9 for Convenience.  D&B may terminate this Agreement for convenience by giving Ensono at *** prior written notice designating the termination date.  Upon receipt of any such termination notice from D&B, Ensono shall, consistent with the provisions of this Agreement (and any applicable Schedules thereto), (A) wind-down its work with respect to this Agreement as quickly as possible; (B) eliminate any ongoing expenses under this Agreement, to the extent Ensono may do so (and to the extent Ensono cannot immediately eliminate any such expense, Ensono shall do so as soon as it can, during such *** period); and (C) not make any future long-term commitments under such Agreement (e.g., leasing of additional Equipment).  In the event of a termination for convenience pursuant to this Section 23.4, D&B shall be liable to pay to Ensono the Termination For Convenience Charges provided in Section 14.5 (subject to Section 14.3), and although such payment is not a condition precedent to the termination, D&B acknowledges and agrees that (i) D&B shall remain contractually obligated to pay Ensono the applicable Termination for Convenience Charges and (ii) such obligation shall survive any such termination by D&B pursuant to this Section 23.4(b).  Ensono

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shall invoice D&B for Termination for Convenience Charges upon the effective date of termination, and such Charges shall be due thirty (30) days after the effective date of termination.  If a purported termination for cause by D&B under Section 23.2 is ultimately determined not to have been properly a termination for cause, then such termination by D&B shall instead be deemed to be a termination for convenience under this Section 23.4.  
(b)Termination of an SOW (other than SOW #9) for Convenience.  If a SOW (other than SOW #9) provides that it may be terminated for convenience, the provisions of such SOW shall control. 
		
	23.5
	Termination Upon Change of Control of Ensono.

(a)“Change of Control of Ensono” means: 
(i)an announcement by Ensono or Ensono UK that any other entity, person or “group” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended) (collectively “Distinct Entity”) will acquire either Control of (or all or substantially all of the assets of) Ensono of Ensono UK (or any parent company of Ensono or Ensono UK), whether directly or indirectly, in a single transaction or series of related transactions;
(ii)an announcement by Ensono or Ensono UK that Ensono or Ensono UK (or any parent company of Ensono or Ensono UK) will consolidate with, or merge with or into a Distinct Entity, or will sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of its assets to a Distinct Entity;
(iii)an announcement by Ensono or Ensono UK that a D&B Competitor will become a Majority-Owned Affiliate of Ensono or Ensono UK;
(iv)that Ensono has undergone any change in ownership affecting more than forty percent (40%) of Ensono’s equity; or
(v)there has been more than a forty percent (40%) change in composition in Ensono’s Board of Directors over any rolling two (2) year period. 
(b)If the Change of Control of Ensono is subject to (x) Section 23.5(a)(iii) or (y)(A) Section 23.5(a)(i) or Section 23.5(a)(ii) and (B) the Distinct Entity is a D&B Competitor, at any time ***, D&B may terminate this Agreement (in whole and not in part) by giving Ensono at least *** months’ prior written notice designating the termination date.  In such event D&B shall not be liable to pay Ensono any Termination for Convenience Charge or other fee.  Within *** days of receipt of D&B’s notice of such termination (time being of the essence), ***. 
(c)If the Change of Control of Ensono is subject to (x) Section 23.5(a)(i) or Section 23.5(a)(ii) and (y) the Distinct Entity is not a D&B Competitor, *** D&B may terminate this Agreement (in whole, and not in part), by giving Ensono at least *** months’ prior written notice designating the termination date.  In the event of a termination by D&B pursuant to this Section 23.5(c), D&B 

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shall be liable to pay to Ensono *** of the Termination for Convenience Charges that would be applicable for a Termination For Convenience, and although such payment is not a condition precedent to the termination, D&B acknowledges and agrees that (i) D&B shall remain contractually obligated to pay Ensono the applicable Termination For Convenience Charges and (ii) such obligation shall survive any such termination by D&B pursuant to this Section 23.5(c).  Ensono shall invoice D&B for such amount upon the effective date of termination, and such charges shall be due *** days after the effective date of termination.  
(d)If the Change of Control of Ensono is subject to Section 23.5(a)(iv) or (v), at any time ***, D&B may terminate this Agreement (in whole, and not in part), by giving Ensono at least *** months’ prior written notice designating the termination date.  In the event of a termination by D&B pursuant to this Section 23.5(d), D&B shall be liable to pay to Ensono *** of the Termination for Convenience Charges that would be applicable for a Termination For Convenience, and although such payment is not a condition precedent to the termination, D&B acknowledges and agrees that (i) D&B shall remain contractually obligated to pay Ensono the applicable Termination for Convenience Charges, and (ii) such obligation shall survive any such termination by D&B pursuant to this Section 23.5(d).  Ensono shall invoice D&B for such amount upon the effective date of termination, and such charges shall be due *** days after the effective date of termination.  
(e)At any time within the period when D&B may elect to terminate this SOW pursuant to Section 23.5(b) (e.g., due to a Change of Control of Ensono with a D&B Competitor) (without regard to whether D&B has exercised its termination right hereunder, ***.  If D&B makes such election Ensono shall perform the foregoing obligation within thirty (30) days.  D&B’s election shall be without regard to whether D&B has elected to exercise any of its other options hereunder (all of which shall be cumulative).  ***.
		
	23.6
	Termination Due To Force Majeure Event.

This Agreement may also be terminated, in whole or part and at no-cost or charge, as provided in Section 20.3(d).
		
	23.7
	Termination Due To Ensono’s Financial Inability To Perform.

If Ensono:
(a)files a petition in bankruptcy,
(b)has an involuntary petition in bankruptcy filed against it which is not challenged within twenty (20) days and dismissed within sixty (60) days,
(c)becomes insolvent,
(d)makes a general assignment for the benefit of creditors,
(e)admits in writing its inability to pay its debts as they mature,

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(f)has a receiver appointed for its assets,
(g)has any significant portion of its assets attached, or either Moody’s Investors Service or Standard & Poors lower Ensono’s credit rating from the rating as of the Effective Date by more than two (2) steps, then D&B may by giving notice to Ensono terminate this Agreement, at no-cost or charge, for default, as of the date specified in such notice of termination.
		
	23.8
	Extension of Termination/Expiration Effective Date.

D&B may extend the effective date of any termination/expiration of this Agreement and/or any SOW hereunder *** as it elects in its discretion; provided that the total of all such extensions with respect to the applicable contract document terminating or expiring (e.g., a particular SOW or this Agreement, in-whole) shall not exceed *** following the effective date of termination/expiration in place immediately prior to the initial extension under this Section and, if termination is pursuant to Section 23.1(b), D&B either (a) pre-pays the estimated monthly Charges with respect to the applicable contract document terminating or expiring at least thirty (30) days prior to each month, or (b) posts an irrevocable letter of credit (or performance bond) in sufficient amount to meet the on-going charges to be incurred with respect to the applicable contract document terminating or expiring.  For any notice or notices of such extensions provided to Ensono within thirty (30) days of the then-scheduled date of termination/expiration, D&B shall also reimburse Ensono for additional Out-of-Pocket Expenses and/or appropriate T&M Charges caused by such notices.
		
	23.9
	No Damages From Termination; No Other Termination for Convenience Charges.

(a)Neither party shall be liable to the other for any damages arising from proper termination of this Agreement or an SOW hereunder, although each party shall remain liable for any damages suffered as a result of any underlying breach.
(b)For the avoidance of doubt, except as provided in Sections 8.2(b)(iii), 8.3(b)(ii), 19.5(b), 23.4, and 23.5 there shall be no termination fees or charges associated with D&B exercising any of its rights to terminate this Agreement.  
		
	23.10
	Termination/Expiration Assistance.

(a)Beginning (1) six (6) months prior to expiration of this Agreement (and/or an SOW hereunder) or upon such earlier date as D&B may request, or (2) upon a notice of termination (including notice of termination based upon default by D&B) or of non-renewal of this Agreement (and/or an SOW hereunder), and subject to Section 23.10(a)(iii)(C)(II) below, continuing through the effective date of expiration or, if applicable, of termination of this Agreement and/or such SOW hereunder (as such effective date may be extended pursuant to Section 23.8), Ensono shall provide to D&B, or at D&B’s request to D&B’s designee, the reasonable termination/-expiration assistance requested by D&B to allow the Services to continue without interruption or adverse effect and to facilitate the orderly transfer of the terminating or expiring 

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Services to D&B or its designee (including a competitor of Ensono, whether or not designated as an Ensono Competitor) (“Termination/- Expiration Assistance”).  Termination/-Expiration Assistance shall include the assistance described in Exhibit A-3 to the relevant SOW and the following:
(i)D&B or its designee shall be permitted to undertake, without interference from Ensono, to hire Ensono Personnel primarily performing the Services as of the date of notice of termination or reduction or removal of Services, or, in the case of expiration, within the six (6) month period (or longer period requested by D&B) prior to expiration.  Ensono shall waive, and shall cause its subcontractors to waive, their rights, if any, under agreements with such personnel restricting the ability of such personnel to be recruited or hired by D&B or D&B’s designee.  D&B or its designee shall have reasonable access to such personnel for interviews and recruitment.  D&B and Ensono will work together to coordinate communications to Ensono Personnel about termination or expiration of the Services in order to minimize the risk of disruption to the Services.
(ii)If D&B is entitled pursuant to this Agreement and/or an SOW hereunder to a sublicense or other right to Use any Software owned or licensed by Ensono, Ensono shall provide such sublicense or other right.
(iii)At D&B’s request, Ensono shall:
(A)obtain, at D&B’s expense (unless otherwise provided herein), any required consents from third parties and thereafter assign to D&B or its designee leases for some or all of the Equipment that was necessary as of the date of termination/expiration of this Agreement or an SOW hereunder primarily for providing the terminating or expiring Services, and D&B shall assume the obligations under such leases that relate to periods after such date;
(B)sell to D&B or its designee *** some or all of the Equipment owned by Ensono that as of the date of termination/expiration of this Agreement or an SOW hereunder was used primarily for providing the terminating or expiring Services (provided that Ensono may decline to sell any Equipment that is physically commingled with equipment serving other Ensono customers)(D&B shall be entitled to offset the amount of such sale price by up to *** of any Termination For Convenience Charge being paid in connection with such termination); and 
(C)For both Section 23.10(a)(iii)(A) and 23.10(a)(iii)(B), with respect to Equipment that D&B elects to purchase or for which D&B assumes a lease: 
(I)Ensono shall provide all user and other documentation relevant to such Equipment that is in Ensono’s possession; and 
(II)D&B will assume responsibility under any maintenance agreements for such Equipment to the extent such responsibilities relate to periods after the date of transfer.

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(b)For *** following such effective date of termination/expiration under other provisions of this Agreement, at D&B’s request Ensono shall continue to provide Termination/-Expiration Assistance.  Actions by Ensono under this Section 23.10(a)(iii)(C)(II) shall be subject to the other provisions of this Agreement.  Charges for such activities by Ensono shall be at the then-current T&M Rates, or other rates as specified Schedule C, as applicable, or at such lower rates as are equitable in the circumstances.
(c)As part of evaluating whether to undertake or allow termination/expiration or renewal of this Agreement or an SOW hereunder, D&B may consider obtaining, or determine to obtain, from third parties offers for performance of services similar to the Services following termination/-expiration of this Agreement or an SOW hereunder.  As and when reasonably requested by D&B for use in such a process, Ensono shall provide to D&B such information and other cooperation regarding performance of the Services as would be reasonably necessary for a third party to prepare an informed, non-qualified offer for such services.  The types of information and level of cooperation to be provided by Ensono pursuant to this Section 23.10(c) shall be no less than those initially provided by D&B to Ensono prior to commencement of this Agreement.  Ensono’s support in this respect shall include providing information regarding Equipment, Software, staffing and other matters (whether or not D&B shall have a post-termination license to such), as applicable to this Section 23.10(c).  Notwithstanding the previous in this Section 23.10(c), if any such third party is an Ensono Competitor and Ensono Confidential Information will be disclosed to such entity, then Ensono’s cooperation as provided in this Section 23.10(c) is subject to D&B obtaining from such entity its written agreement to comply with reasonably appropriate confidentiality and security requirements applicable to Ensono’s release of such Ensono Confidential Information.
(d)As a general rule, Ensono agrees to provide or license to D&B, upon the expiration or termination of this Agreement or an SOW hereunder, any of the Software, Equipment, or Materials that are necessary for the provision of the Services and that are then subject to commercial licensing by Ensono (and/or then provided by Ensono to the marketplace).  Such products and/or assets shall be provided on the terms and conditions, including price, then generally available to other Ensono licensees and/or customers receiving services.  At D&B’s request, Ensono shall (i) provide D&B with necessary information describing the Software, Equipment, Materials, and other services (e.g., telecommunications) utilized by Ensono to provide Services, and (ii) provide D&B with appropriate diagrams of how these items are linked together (including related throughput analysis).
(e)Ensono agrees to waive any restrictions in its third party contracts that would prevent D&B from licensing, purchasing, or being assigned any such third party products.
		
	23.11
	Equitable Remedies.

Ensono acknowledges that if it breaches (or attempts or threatens to breach) its obligation to provide Termination/Expiration Assistance as provided in 

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Section 23.10, D&B will be irreparably harmed and D&B shall be entitled to injunctive relief and/or specific performance as provided in Section 22.4.  In such a circumstance, D&B may proceed directly to court.  If a court of competent jurisdiction should find that Ensono has breached (or attempted or threatened to breach) any such obligations, Ensono agrees that, without any additional findings of irreparable injury or other conditions to injunctive relief (including the posting of bond), it shall not oppose the entry of an appropriate order compelling performance by Ensono and restraining it from any further breaches (or attempted or threatened breaches).
		
	23.12
	Effect of Termination or Expiration of this Agreement on SOWs Hereunder.

If there is any SOW still in effect at such time that this Agreement is terminated for any reason or expires (and such SOW is not otherwise terminated in accordance with the provisions therein), then notwithstanding such termination or expiration of this Agreement, it is understood and agreed by the parties that each such SOW shall continue in effect for the term provided therein (unless otherwise terminated in accordance with the provisions therein), and the terms and conditions of this Agreement shall remain applicable thereto.
		
	23.13
	Termination of the IMSA.

If a breach of the IMSA by Ensono UK is material in the context of the overall relationship between Ensono and Ensono UK and D&B and DBIS under the IMSA and this Agreement, D&B may exercise the rights provided in Section 23.1.
		
	23.14
	Transfer Regulations.

The terms and conditions provided in Schedule O shall apply to any transfers of Ensono Personnel occurring under applicable Transfer Regulations (as defined in Schedule O).
		
	24.
	COMPLIANCE WITH LAWS

		
	24.1
	Compliance with Laws and Regulations Generally.

(a)Each party shall perform its obligations in a manner that complies with all Applicable Laws and Regulations in connection with the performance of its obligations under this Agreement.  In its provision of the Services, Ensono will also comply with relevant D&B policies (so long as D&B has notified Ensono of such policies).  To the extent D&B policies are not applicable, Ensono shall follow its own policies (which shall be provided to D&B) or perform to industry standards, whichever are more rigorous.
(b)As provided in Section 3.5(b)(i) of this Agreement, each SOW shall contain any legal exceptions and additions, country-specific exceptions and additions, and transaction-specific exceptions and additions with respect to Applicable Laws and Regulations that apply to the Services provided pursuant to such SOW.

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	24.2
	FCRA, GLB Act, and Similar Laws.

(a)Ensono shall comply with all Applicable Laws and Regulations protecting the confidential material and privacy rights of D&B, its Affiliates, and/or their customers and consumers, including (i) the FCRA; (ii) Title V of the GLB Act; (iii) the implementing regulations and the guidelines issued pursuant to § 501 of the GLB Act; and (iv) all other worldwide data privacy laws.  To the extent such Applicable Laws and Regulations would not be applicable to Ensono other than due to this provision, for purposes of this Agreement Ensono shall be entitled to rely on D&B’s instructions as to how compliance with such laws and regulations are to be complied with.  To the extent applicable to Ensono’s operations, Ensono shall also comply with data security regulations of the payment card industry, Sarbanes Oxley, the Bank Secrecy Act, the Patriot Act and the Canadian Proceeds of Crime (Money Laundering) and Terrorist Financing Act.  
(b)D&B shall comply with all applicable national, federal, state, or local laws, rules, and regulations of regulatory agencies protecting the confidential material and privacy rights of Ensono, its Affiliates, and/or their customers and consumers, including (i) the FCRA; (ii) Title V of the GLB Act; (iii) the implementing regulations and the guidelines issued pursuant to § 501 of the GLB Act, with respect to Services provided under this Agreement; and (iv) all other worldwide data privacy laws.  To the extent applicable to D&B’s operations, D&B shall also comply with data security regulations of the payment card industry, Sarbanes Oxley, the Bank Secrecy Act, the Patriot Act and the Canadian Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
		
	24.3
	Equal Employment Opportunity/Affirmative Action.

Ensono represents that it is, and during the Term shall remain, an equal opportunity affirmative action employer.  Ensono certifies that Ensono does not, and shall not, discriminate against its employees or applicants for employment on any legally impermissible basis and is and shall remain in compliance with all Applicable Laws and Regulations against discrimination, including Executive Orders 11141, 11246, 11375, 11458, 11625, 11701, and 11758.  Ensono certifies in accordance with 41 CFR Chapter 60-1.8 that its facilities are not segregated and that Ensono complies with the Equal Opportunity Clause (41 CFR §60-1.4), the Affirmative Action Clause for Handicapped Workers (41 CFR §60-250.4), and the Affirmative Action Clause for Disabled Veterans and Veterans of the Vietnam Era (41 CFR §60-741.4), which are incorporated herein by reference.
		
	24.4
	Occupational Safety And Health Act.

All work performed under this Agreement will fully comply with the provisions of the Federal Occupational Safety and Health Act of 1970 and with any rules and regulations promulgated pursuant to the Act and any similar state or local laws.

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	24.5
	Hazardous Products or Components.

Ensono agrees to notify D&B in writing and to supply an appropriate and complete Material Safety Data Sheet to D&B’s Contract Executive as well as to the ship-to point, if any materials to be brought onto D&B’s premises are toxic or hazardous under Applicable Laws and Regulations or if the material is capable of constituting a hazard.  Ensono shall be responsible to ensure that all materials display all reasonable notices and warnings of foreseeable hazards.  If the material is classified under the requirements of the OSHA Hazard Communication Standard, 29 CFR §1910.1200, the name and address of the chemical manufacturer or importer or other responsible parties must be marked on the label.  Appropriate hazard warnings specifying target organs must be on the label.  If any materials or containers would be or could be classified as hazardous or otherwise regulated waste at the end of its useful life, Ensono shall advise D&B in writing and provide D&B with proper disposal instructions, although Ensono shall be responsible for the disposal thereof in compliance with all Applicable Laws and Regulations.
		
	24.6
	Liens.

Except with respect to liens obtained in connection with legal proceedings brought by Ensono to enforce its rights hereunder, Ensono hereby waives and forever releases D&B, its Affiliates, and its and their real and personal property (whether owned or leased) from any past, present, or future lien notices, lien claims, liens, encumbrances, security interests, or other lien rights of any kind based, in whole or in part, on any Services provided under this Agreement.
		
	24.7
	Modifications to the Services to Comply with Laws; Cost Allocation.

(a)Required Modifications to the Services.  Subject to Section 24.7(b), the Services within Ensono’s scope of responsibility will be required to comply with all Applicable Laws and Regulations in effect from time to time to the extent such Applicable Laws and Regulations are applicable to Ensono’s performance of its obligations under this Agreement.  Such modifications will be treated by Ensono with the “highest priority” if requested by D&B.
(b)Cost Allocation.  Ensono’s compliance with the requirements provided in Article 24 or elsewhere in this Agreement as they exist as of the SOW Effective Date is entirely Ensono’s responsibility, and no additional charges may be imposed with respect thereto.  The additional cost of compliance with changes may be charged to D&B (where the cost of compliance is allocated by this Agreement to D&B), except:
(i)where such changes are a result of laws directly applicable to Ensono because of the business Ensono is in as opposed to because it serves (A) D&B in particular or (B) a class of customers that includes D&B;
(ii)where such changes are a result of laws applicable in a country in which D&B does not operate, but from which Ensono provides the Services;

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(iii)if Ensono makes such additional capabilities available to its other customers without additional charge; or the change results in D&B’s utilizing additional chargeable Resource Units in a proportionate relationship to Ensono’s additional cost;
provided, however, that (A) to the extent other Ensono customers also require or benefit from the change in the services to comply with changes, the costs associated with such change shall be equitably allocated among Ensono’s customers and (B) where Ensono’s performance of the Services is in compliance with an Applicable Law and Regulation applicable only to D&B and not to Ensono and D&B withdraws the portion of the Services applicable thereto, Ensono shall not be required to provide such compliance Services unless D&B agrees to pay the cost thereof as a New Service.
		
	25.
	PROVISIONS REGARDING TRANSITION FROM GMSA

		
	25.1
	Cancellation of the GMSA.

This Agreement replaces and supersedes the Original GMSA as of the Effective Date.  Ensono shall invoice D&B for Charges for Services provided in December, 2016 in accordance with the rates and terms provided in the Original GMSA.
		
	25.2
	Continuation of SOWs.

As of the Effective Date there were only two SOWs outstanding under the Original GMSA, SOW #9 and SOW #30.  SOW #9 under the Original GMSA is being replaced with the Amended and Restated SOW #9 hereunder.  SOW #30 was terminated by D&B to be effective as of December 31, 2016 but if D&B extends it pursuant to Section 23.8 it shall continue in effect under the terms of this Agreement (provided that any Charges under SOW #30 shall not apply for purposes of calculating the Annual Minimum Charges or the Commitment Cap.
		
	25.3
	Mutual Release of Claims.

(a)Each party, on its own behalf and on behalf of its Affiliates and anyone claiming under or through such party or its Affiliates) releases, discharges, and acquits the other party for all rights, claims, demands, or causes of action (whether known or unknown), arising out of, resulting from, or in any way connected with the Original GMSA except that this release shall not apply to:
(i)D&B’s obligation to pay for Services rendered during November or December 2016 pursuant to invoices rendered or to be rendered by Ensono in the ordinary course and subject to all credits with respect to such Services that would be otherwise applicable;
(ii)Matters covered by insurance; and

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(iii)Breaches of the Original Agreement that as of the Effective Date were not actually known by D&B’s Knowledge Individuals (after due inquiry).  D&B’s “Knowledge Individuals” shall mean ***.  
(b)Without limiting the generality of the foregoing, it is the parties intention that the following claims shall be released hereby:
(i)Any claim by Ensono for an increase to the Charges for Services performed in 2016 as a result of any COLA adjustment (the parties noting that there will be no additional charge for COLA for Services delivered in 2017); and
(ii)Any claim by D&B for a Service Level Credit in the approximate amount of *** for Service Level Failures in 2016 prior to November 1, 2016.
		
	26.
	GENERAL

		
	26.1
	Binding Nature and Assignment.

(a)This Agreement shall be binding on the parties hereto and their respective successors and assigns.  Neither party may, or shall have the power to, assign this Agreement (or any SOW hereunder) without the prior consent of the other, except that D&B may assign its rights and obligations under this Agreement (or any SOW hereunder) without the approval of Ensono to:
(i)an entity which acquires all or substantially all of the assets of D&B or D&B’s line of business to which the Services relate;
(ii)to any Majority-Owned Affiliate, or to the successor in a merger or acquisition of D&B; provided that in no event shall such assignment relieve D&B of its obligations under this Agreement; and provided further that any such entity, Affiliate or successor will provide appropriate documentation indicating that it agrees to be bound hereby.  Unless otherwise specifically agreed to in writing by the parties, any assignment permitted hereunder will include all SOWs entered into hereunder between D&B and Ensono.
(b)Subject to the foregoing in this Section 26.1, any assignment by operation of law, order of any court, or pursuant to any plan of merger, consolidation or liquidation, shall be deemed an assignment for which prior consent is required and any assignment made without any such consent shall be void and of no effect as between the parties.
		
	26.2
	No Collateral Documents.

It is the intent of the parties that this Agreement shall provide all the terms of the relationship between them and that (except as specifically provided to the contrary herein) no representative of D&B shall be required to enter into any additional contractual obligation (either personally or on behalf of D&B).  Without limiting the generality of the foregoing if D&B’s (or its representatives’) personnel are

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 requested or required by Ensono or any subcontractor to execute any releases, waivers, confidentiality agreements, or similar documents to obtain access to Ensono’s or its subcontractors premises or be provided with Confidential Information they shall be void and unenforceable and shall not be pleaded or introduced in any action.  Such individuals are intended to be third party beneficiaries of this provision and may enforce it in their own name.
		
	26.3
	Mutually Negotiated.

Each party acknowledges that the limitations and exclusions contained in this Agreement have been the subject of active and complete negotiation between the parties and represent the parties’ agreement based upon the level of risk to D&B and Ensono associated with their respective obligations under this Agreement and the payments to be made to Ensono and credits to be issued to D&B pursuant to this Agreement.  The terms and conditions of this Agreement (including any perceived ambiguity herein) shall not be construed in favor of, or against, either party by reason of the extent to which any party or its professional advisors participated in the preparation of the original or any further drafts of this Agreement; each party is a sophisticated business entity and has fully negotiated this Agreement with the full participation of counsel, and this Agreement represents their mutual efforts and their mutual intent.
		
	26.4
	Notices.

(a)All notices, requests, demands and determinations under this Agreement (other than routine operational communications), shall be in writing and shall be deemed duly given:
(i)when delivered personally (against a signed receipt),
(ii)on the designated day of delivery (other than a weekend or Federal holiday) after being timely given to an express overnight courier with a reliable system for tracking delivery,
(iii)on the next Business Day when sent by confirmed facsimile with a copy sent by another means specified in this Section 26.4, or four (4) Business Days after the day of mailing, when mailed by United States mail, registered or certified mail, return receipt requested and postage prepaid, or
(iv)when sent to each designated recipient’s email address (provided (X) that the email is sent return receipt and (Y) no later than the next Business Day a physical copy is given by another method designated herein) 
and addressed as follows:

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	In the case of D&B:

Dun & Bradstreet, Inc.
103 JFK Parkway
Short Hills, New Jersey  07078
Attention: Leader, Global Sourcing & Procurement
	with copies to:
Dun & Bradstreet, Inc.
103 JFK Parkway
Short Hills, New Jersey  07078
Attention: General Counsel
hillc@dnb.com and
Dun & Bradstreet, Inc.
103 JFK Parkway
Short Hills, New Jersey 07078
Attention: Chief Content and Technology Officer
browncu@dnb.com

and, in the case of notices of renewal, default, or termination:
Pillsbury Winthrop Shaw Pittman LLP
1200 Seventeenth St NW
Washington, DC 20036
Attention: John Barton, Esq.

	In the case of Ensono:
Ensono, LP
3333 Finley Road
Downers Grove, Illinois  60515
Attention:  Chief Legal Officer
	with copies to:
Ensono, LP
3333 Finley Road
Downers Grove, Illinois  60515
Attention:  ___________

(b)Either party may from time to time change its address or designee for notification purposes by giving the other prior notice of the new address or designee and the date upon which it will become effective.  Because facsimile numbers change over time and facsimile transmissions may not be treated with the same degree of seriousness as more formal communications, notices given by facsimile shall only be deemed effective if responded to by the intended recipient (or his or her successor).  Any additional notice requirements with respect to an individual SOW shall be provided in such SOW.
		
	26.5
	Counterparts.

This Agreement may be executed in several counterparts and by the exchange of signature pages by facsimile or .pdf files sent by e-mail, or by electronic signature each of which shall be considered an original but all of which taken together shall constitute but one and the same agreement with the same effect as if all the signatures were upon the same instrument.  Similarly, each SOW may be executed in counterparts and by the exchange of signature pages by facsimile or .pdf files sent by 

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email or electronic signature, which taken together will constitute one single SOW, as applicable, between the parties with respect to its specific subject matter.  A telecopy or electronic signature shall be as legally effective as an original signature.
		
	26.6
	Headings.

The article and section headings and the table of contents used in this Agreement are for reference and convenience only and shall not enter into the interpretation of this Agreement.
		
	26.7
	Relationship of Parties.

In furnishing the Services Ensono is acting as an independent contractor, and Ensono has the sole right and obligation to supervise, manage, contract, direct, procure, perform or cause to be performed, all work to be performed by Ensono under this Agreement and each SOW.  No contract of agency and no joint venture is intended to be created hereby.  Ensono is not an agent of D&B and has no authority to represent D&B as to any matters, except as expressly authorized in this Agreement or an SOW hereunder.  None of Ensono’s employees shall be deemed employees of D&B and Ensono shall be responsible for reporting and payment of all wages, unemployment, social security and other payroll taxes, including contributions from them when required by law.  D&B does not and shall not have actual, potential, or any other control over Ensono or its employees.
		
	26.8
	Non-Exclusivity.

Except as provided under Section 3.1(e) of this Agreement, this Agreement is non-exclusive and shall not be deemed to be a requirements contract.  D&B shall be free without obligation to Ensono to acquire from third parties services similar or identical to the Services provided hereunder.
		
	26.9
	Severability.

Whenever possible, each provision of this Agreement and/or each SOW will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement or an SOW hereunder conflicts with the law under which this Agreement is to be construed or if any such provision is held invalid by a competent authority, such provision (a) shall be deemed to be restated to reflect as nearly as possible the original intentions of the parties in accordance with applicable law, and (b) will be ineffective only to the extent of such prohibition or invalidity.  The remainder of this Agreement shall remain in full force and effect.
		
	26.10
	Consents and Approval.

Except where expressly provided as being in the discretion of a party, where approval, acceptance, consent, or similar action by either party is required under this Agreement or any SOW, such action shall not be unreasonably delayed or withheld.  An approval or consent given by a party under this Agreement or any SOW shall not relieve the other party from responsibility for complying with the 

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requirements of this Agreement or any SOW (as applicable), nor shall it be construed as a waiver of any rights under this Agreement or any SOW (as applicable), except as and to the extent otherwise expressly provided in such approval or consent.  D&B’s representatives may not be fully familiar with, or necessarily insist at all times on the full and complete performance with, the terms of this Agreement.  D&B’s failure to insist in any one or more instances upon strict performance of any provision of this Agreement or any SOW, or failure or delay to take advantage of any of its rights or remedies hereunder, or failure to notify Ensono of any breach, violation, or default, shall not be construed as a waiver or construction by D&B of any such performance, provision, rights, breach, violation, or default either then or in the future or the relinquishment of any of its rights and remedies.  Each party shall, at the request of the other party, perform those actions, including executing additional documents and instruments, reasonably necessary to give full effect to the terms of this Agreement or any SOW.
		
	26.11
	Waiver of Default; Cumulative Remedies.

(a)A delay or omission by either party to exercise any right or power under this Agreement (and/or any SOW hereunder) shall not be construed to be a waiver thereof.  A waiver by either of the parties of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant herein contained.
(b)Except as otherwise expressly provided herein, all remedies provided for in this Agreement and any SOW shall be cumulative and in addition to and not in lieu of any other remedies available to either party at law or in equity.
		
	26.12
	Survival.

Any provision of this Agreement (or an SOW hereunder) that contemplates performance or observance subsequent to termination or expiration of this Agreement (and/or such SOW) shall survive termination or expiration of this Agreement (and/or such SOW) and continue in full force and effect.
		
	26.13
	Public Disclosures.

(a)All media releases, public announcements and public disclosures by either party relating to this Agreement, any SOW, or the subject matter thereof, including promotional or marketing material, but not including (i) announcements intended solely for internal distribution or (ii) disclosures to the extent required to meet legal or regulatory requirements beyond the reasonable control of the disclosing party (e.g., 10K filings with the SEC), shall be coordinated with and approved by the other party prior to release.
(b)If a party determines that disclosure is required to meet legal or regulatory requirements it shall promptly inform the other party and coordinate such disclosure with the other party.  The disclosing party shall limit disclosure to that which is necessary and shall give due consideration to comments the other party and its counsel provide regarding the nature of the disclosure.

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	26.14
	Service Marks.

Without D&B’s prior consent (which may be arbitrarily withheld and if granted revoked), Ensono shall not use the name, service marks, or trademarks of D&B.
		
	26.15
	Third Party Beneficiaries.

Except as provided in Article 19 and Section 26.2, this Agreement (and each SOW) is entered into solely between, and may be enforced only by, D&B and Ensono, and this Agreement (and each SOW) shall not be deemed to create any rights in third parties, including suppliers and customers of a party, or to create any obligations of a party to any such third parties.
		
	26.16
	Nonsolicitation of Employees.

Subject to Section 23.10(a)(i), from the Effective Date until six (6) months after termination of this Agreement neither party shall directly or indirectly solicit or seek to procure (other than by general advertising), without the prior consent of the other party, (i) in the case of D&B, the employment of Ensono’s employees engaged in the provision of the Services during the period they are so engaged and for six (6) months thereafter, and (ii) in the case of Ensono, D&B’s employees related to its information systems during the period they are so engaged and for six (6) months thereafter.
		
	26.17
	Covenant of Good Faith and Fair Dealing.

Each party, in its respective dealings with the other party under or in connection with this Agreement (and each SOW), shall act in good faith and with fair dealing.
		
	26.18
	Entire Agreement; Amendment.

(a)This Agreement, including any Schedules and Exhibits referred to herein and attached hereto and any SOWs executed hereunder, each of which is incorporated herein for all purposes, constitutes the entire agreement between the parties with respect to the subject matter contained in this Agreement and supersedes all prior agreements, whether written or oral, with respect to such subject matter.  Neither the course of dealings between the parties nor trade practices shall act to modify, vary, explain, or amend this Agreement or any SOW hereunder.  If either party issues any purchase order, terms or conditions, or other form, it shall be deemed solely for the administrative convenience of that party and not binding on the other party, even if acknowledged or acted upon.  No change, waiver, or discharge hereof shall be valid unless in writing and signed by an authorized representative of the party against which such change, waiver or discharge is sought to be enforced.  There are no promises, representations, warrantees, or other commitments relied upon by either party that is not expressly set forth herein.

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(b)For the avoidance of doubt, a Change Order Document or an SOW may be entered into by the parties in accordance with the terms of this Agreement without the necessity of amending this Agreement.  
***Signature Page Follows****

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IN WITNESS WHEREOF, the parties have each caused this Global Master Services Agreement to be signed and delivered by its duly authorized officer, effective as of the Effective Date.
	
		
	DUN & BRADSTREET, INC.
	ENSONO, LP

	By:/s/ CURTIS BROWN
	By: /s/ PETER BASIL

	Curtis Brown
	Peter Basil

	Chief Content and Technology Officer
	Chief Legal Officer

	Date: January 3, 2017
	Date: January 3, 2017

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