Document:

Exhibit 4.6

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

OPGEN, INC.

WARRANT TO PURCHASE COMMON STOCK

	
No. ____________ 

	
February ___, 2015

Void After February ___, 2025

THIS CERTIFIES THAT, for value received, _____________, with its principal office located at _________________, or its assigns (the "Holder"), is entitled to subscribe for and purchase from OpGen, Inc., a Delaware corporation, with its principal office at 708 Quince Orchard Road, Gaithersburg, Maryland 20878 (the "Company"), the Exercise Shares (as defined below) at the Exercise Price (as defined below).

1.     PURCHASE AGREEMENT.  This Warrant to Purchase Common Stock is one of a series of warrants (the "Financing Warrants") issued pursuant to the Notes Purchase Agreement, dated as of February 11, 2015, among the Company and the investors named therein (as the same may be amended from time to time, the "Purchase Agreement"), and is subject to the provisions thereof.  Capitalized terms used but not defined herein have the meanings given to them in the Purchase Agreement.

2.     DEFINITIONS.  As used herein, the following terms shall have the following respective meanings:

2.1     "Acceleration Event" means a Deemed Liquidation Event; provided, however, that a transaction shall not constitute an Acceleration Event if its sole purpose is to change the state of the Company's incorporation.  Notwithstanding the prior sentence, the sale of shares of capital stock of the Company in a financing transaction shall not be deemed an "Acceleration Event."

2.2     "Common Stock" means the Company's Common Stock, par value $0.01 per share.

2.3     "Deemed Liquidation Event" has the meaning set forth in the Restated Certificate.

2.4     "Exercise Period" means the period commencing on the date that is six (6) months after the closing of an initial public offering of the securities of the Company registered under the Securities Act ("IPO") and ending at 11:59 p.m. on February ___, 2025.

 

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2.5     "Exercise Price" means 110% of the per share offering price to the public in the IPO.

2.6     "Exercise Shares" means ____ (____) shares of Common Stock purchasable upon exercise of this Warrant.

2.7     "Fair Market Value" means, as of any particular date:  (a) the volume weighted average of the closing sales prices of the Common Stock for such day on all domestic securities exchanges on which the Common Stock may at the time be listed; (b) if there have been no sales of the Common Stock on any such exchange on any such day, the average of the highest bid and lowest asked prices for the Common Stock on all such exchanges at the end of such day; (c) if on any such day the Common Stock is not listed on a domestic securities exchange, the closing sales price of the Common Stock as quoted on the Financial Industry Regulatory Authority OTC Bulletin Board electronic inter-dealer quotation system (the "OTC Bulletin Board"), the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX, OTCQB and OTC Pink (the "Pink OTC Markets"), or similar quotation system or association for such day; or (d) if there have been no sales of the Common Stock on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association on such day, the average of the highest bid and lowest asked prices for the Common Stock quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association at the end of such day; in each case, averaged over twenty (20) consecutive Business Days ending on the Business Day immediately prior to the day as of which "Fair Market Value" is being determined; provided, that if the Common Stock is listed on any domestic securities exchange, the term "Business Day" as used in this sentence means Business Days on which such exchange is open for trading.  If at any time the Common Stock is not listed on any domestic securities exchange or quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association, the "Fair Market Value" of the Common Stock shall be the fair market value per share as determined by the Company's Board of Directors in good faith.

2.8     "Restated Certificate" means the Ninth Amended and Restated Certificate of Incorporation of the Company, as amended by the Certificate of Amendment, and as may be further amended, or amended and restated.

3.     EXERCISE OF WARRANT.  The rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder):

3.1     an executed Notice of Exercise in the form attached hereto;

3.2     payment of the Exercise Price either (i) in cash or by check, (ii) by cancellation of indebtedness, (iii) by net exercise pursuant to Section 3.4 or (iv) any combination of the foregoing; and

3.3     this Warrant.

Upon the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised.  In the event that this Warrant is being exercised for less than all of the then-current number of Exercise Shares purchasable hereunder, the Company shall, concurrently with the issuance by the Company of the number of Exercise Shares for which this Warrant is then being exercised, issue a new Warrant exercisable for the remaining number of Exercise Shares purchasable hereunder.

 

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The person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open.

3.4     Net Exercise.  Notwithstanding any provisions herein to the contrary, if the Fair Market Value of one Exercise Share is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the Company shall issue to the Holder a number of Exercise Shares computed using the following formula:

X = Y (A-B)

             A

Where X=the number of Exercise Shares to be issued to the Holder

		Y =	the number of Exercise Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)

		A =	the Fair Market Value of one Exercise Share (at the date of such calculation)

		B =	Exercise Price (as adjusted to the date of such calculation)

	4.	COVENANTS OF THE COMPANY.

4.1     Covenants as to Exercise Shares.  The Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and non-assessable, and free from all taxes, liens and charges with respect to the issuance thereof.  The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of Exercise Shares to provide for the exercise of the rights represented by this Warrant, and a sufficient number of the Company's Common Stock issuable upon conversion of such Exercise Shares.  If at any time during the Exercise Period the number of authorized but unissued Exercise Shares shall not be sufficient to permit exercise of this Warrant, or the number of authorized but unissued Common Stock is insufficient to permit the issuance of such Common Stock upon conversion of the Exercise Shares, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued Exercise Shares or Common Stock to such number of shares as shall be sufficient for such purposes.

 

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4.2    Notices of Record Date.  In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or other distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any shares of stock of any class or any other securities or property, or to receive any other right; the Company shall mail to the Holder, at least ten (10) days prior to the date specified herein, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

	5.	REPRESENTATIONS OF HOLDER.

5.1     Acquisition of Warrant for Personal Account.  The Holder represents and warrants that it is acquiring the Warrant and the Exercise Shares solely for its account for investment and not with a view to or for sale or distribution of said Warrant or Exercise Shares or any part thereof.  The Holder also represents that the entire legal and beneficial interests of the Warrant and Exercise Shares the Holder is acquiring is being acquired for, and will be held for, its account only.

5.2     Corporate Information.  The Holder has had the full and complete opportunity to discuss the Company's business, management and financial affairs with directors, officers and management of the Company and has had the full and complete opportunity to review the Company's operations and facilities.  The Holder has also had the opportunity to ask questions of, and receive answers from, the Company and its management regarding the terms and conditions herein.

5.3     Economic Risk and Protection of Interest.

(a)     The Holder has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company so that it is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests.  The Holder must bear the economic risk of this investment indefinitely unless the Exercise Shares are registered pursuant to the Securities Act of 1933, as amended (the "Act"), or an exemption from registration is available.  The Holder understands that the Company has no present intention of registering the Exercise Shares.  The Holder also understands that there is no assurance that any exemption from registration under the Act will be available and that, even if available, such exemption may not allow the Holder to transfer all or any portion of the Warrant or the Exercise Shares under the circumstances, in the amounts or at the times the Holder might propose.

(b)     The Holder represents that by reason of its, or of its management's, business or financial experience, the Holder has the capacity to protect its own interests in connection with the transactions contemplated herein.  Further, the Holder is aware of no publication of any advertisement in connection with the transactions contemplated herein.

 

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		5.4	U.S. Purchasers.

(a)       Securities Are Not Registered.

(i)  The Holder understands that the Warrant and the Exercise Shares have not been registered under the Act on the basis that no distribution or public offering of the stock of the Company is to be effected.  The Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities.  The Holder has no such present intention.

(ii)  The Holder recognizes that the Warrant and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available.  The Holder recognizes that the Company has no obligation to register the Warrant or the Exercise Shares of the Company, or to comply with any exemption from such registration.

(iii)  The Holder is aware that neither the Warrant nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale following the required holding period under Rule 144 and the number of shares being sold not exceeding specified limitations.  Holder is aware that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company presently has no plans to satisfy these conditions in the foreseeable future.

(b)       Accredited Investor.  The Holder represents that it is an "accredited investor" within the meaning of Regulation D under the Act.

5.5           Foreign Holder.  If the Holder is not a "U.S. Person" (as defined under Regulation S under the Act), then the foreign Holder represents that the Warrant and the Exercise Shares to be purchased by the foreign Holder will be acquired for investment for the foreign Holder's own account, not as a nominee or agent, and not for the account or benefit of, a U.S. Person, and not with a view to the resale or distribution of any part thereof in the United States and that the foreign Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.

(a)     The foreign Holder understands that the Warrant and the Exercise Shares are not registered under the Act on the ground that the sale provided for in the Agreement and the issuance of securities thereunder is exempt from registration under the Act pursuant to Regulation S thereof, and that the Company's reliance on such exemption is predicated on the foreign Holder's representations set forth herein.  The foreign Holder hereby agrees to resell the Warrant and the Exercise Shares only in accordance with the provisions of Regulation S, pursuant to registration under the Act, or pursuant to an exemption from registration.  The foreign Holder further agrees not to engage in hedging transactions with regard to such Warrant and Exercise Shares unless in compliance with the Act.

(b)     Such foreign Holder hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to purchase the Warrant and the Exercise Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Warrant and the Exercise Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any government or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Warrant or the Exercise Shares.  Such foreign Holder's subscription and payment for and continued beneficial ownership of the Warrant and the Exercise Shares will not violate any applicable securities or other laws of such Holder's jurisdiction.

 

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5.6           Residence.  If the Holder is an individual, then the Holder resides in the state or province identified in the address of the Holder set forth below; if the Holder is a partnership, corporation, limited liability company or other entity, then the office or offices of the Holder in which its investment decision was made is located at the address or addresses of the Holder set forth herein.

		5.7	Disposition of Warrant and Exercise Shares.

(a)  The Holder further agrees not to make any disposition of all or any part of the Warrant or Exercise Shares in any event unless and until:

(i)  the Company shall have received a letter secured by the Holder from the Securities and Exchange Commission stating that no action will be recommended to the Commission with respect to the proposed disposition;

(ii)  there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with said registration statement; or

(iii) the Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, for the Holder to the effect that such disposition will not require registration of such Warrant or Exercise Shares under the Act or any applicable state securities laws.

Notwithstanding anything to the contrary herein, the Holder may transfer or assign this Warrant, in whole or in part, without providing the Company an opinion of counsel or any other documentation to a charitable organization if the Company becomes the subject of foreign ownership, control or influence, provided that the Holder and transferee or assignee execute and deliver the Assignment Form (attached hereto) and the transferee signs an investment letter with the representations set forth in paragraph 3 of the attached Notice of Exercise form.

 

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(b)  The Holder understands and agrees that all certificates evidencing the shares to be issued to the Holder may bear the following legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

6.     ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF EXERCISE SHARES.  In the event of changes in the outstanding Common Stock of the Company by reason of stock dividends, splits, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number and class of Exercise Shares available under the Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment.  The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant.

7.     FRACTIONAL SHARES.  No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto.  All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share.  If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current Fair Market Value of an Exercise Share by such fraction.

8.     EARLY EXERCISE.  In the event of a Deemed Liquidation Event, the Company shall provide to the Holder twenty (20) days advance written notice of such Deemed Liquidation Event, and this Warrant shall be deemed exercised pursuant to Section 3 immediately prior to the occurrence of such Deemed Liquidation Event.

9.     TRANSFER OF WARRANT.  Upon the written consent of the Company, and subject to applicable laws and the restriction on transfer set forth on the first page of this Warrant, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder.  The transferee shall sign an investment letter with the representations set forth in paragraph 3 of the attached Notice of Exercise form.

10.    NO STOCKHOLDER RIGHTS.  This Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company.

 

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11.     LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.  If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.  Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

12.     NOTICES, ETC.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) when read by electronic mail (sender shall have received a read by recipient confirmation), (d) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (e) one (1) business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Company at the address listed on the signature page and to Holder at the address listed on the signature page, or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other parties hereto.

13.     ACCEPTANCE.  Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

14.     GOVERNING LAW.  This Warrant and all rights, obligations and liabilities hereunder shall be governed by and construed under the laws of the State of Delaware in all respects as such laws are applied to agreements among Delaware residents entered into and performed entirely within Delaware.  THE COMPANY AND THE HOLDER HEREBY WAIVE THEIR RIGHT TO A TRIAL BY JURY WITH RESPECT TO DISPUTES ARISING UNDER THIS WARRANT AND CONSENT TO A BENCH TRIAL WITH THE APPROPRIATE JUDGE ACTING AS THE FINDER OF FACT.

15.     AMENDMENT AND WAIVER.  Any term of this Warrant may be amended or waived with the written consent of (a) the Company and (b) the Holder.

[SIGNATURE PAGE FOLLOWS]

 

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as the date first written above.

OPGEN, INC.

By:_________________________________

Name:

Title:

Address:   708 Quince Orchard Road

                   Gaithersburg, Maryland 20878

Holder:

Number of Shares:

Date:

 

 

NOTICE OF EXERCISE

TO: OPGEN, INC.

(1)   The undersigned hereby elects to purchase ________ shares of the Common Stock of OpGen, Inc. (the "Company") pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

The undersigned hereby elects to purchase ________ shares of the Common Stock of OpGen, Inc. (the "Company") pursuant to the terms of the net exercise provisions set forth in Section 3 of the attached Warrant, and shall tender payment of all applicable transfer taxes, if any.

(2)   Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

_______________________

(Name)

_______________________

_______________________

 (Address)

(3)   The undersigned represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned's own interests; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), by reason of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Company and the Company has not made such information available and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required.

 

 

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_____________________________________________

	
_____________________________________________

	(Date)	 (Signature)

	
 

	
_____________________________________________

		 (Print name)

 

 

 

 

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ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and

supply required information.  Do not use this form to

purchase shares.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

Name: __________________________________________________________________________________

(Please Print)

Address:  _______________________________________________________________________________

(Please Print)

Dated:________, 20___

Holder's

Signature:  ______________________________________________________________________________

Holder's

Address:  ______________________________________________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.1.5

 

FIFTH AMENDMENT TO LEASE AGREEMENT

THIS FIFTH AMENDMENT TO LEASE AGREEMENT ("this Fifth Amendment") is dated as of March 20, 2015 ("Effective Date"), by and between ARE-708 QUINCE ORCHARD, LLC, a Delaware limited liability company, having an address at 385 E. Colorado Blvd., Suite 299, Pasadena, California  91101 ("Landlord"), and OPGEN, INC., a Delaware corporation, having an address at Suite 220, 708 Quince Orchard Road, Gaithersburg, Maryland  20878 ("Tenant").

RECITALS

A.     Landlord and Tenant have entered into that certain Lease Agreement ("Original Lease") dated as of June 30, 2008, as amended by a First Amendment to Lease dated as of April 4, 2011 ("First Amendment"), a Second Amendment to Lease Agreement dated as of August 15, 2012 ("Second Amendment"), a Third Amendment to Lease Agreement dated as of December 30, 2013 ("Third Amendment"), and a Fourth Amendment to Lease Agreement dated as of March 21, 2014 ("Fourth Amendment"; the Original Lease, the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment are hereinafter collectively referred to as the "Lease"), wherein Landlord leased to Tenant certain premises located on the first and second floors of the building located at 708 Quince Orchard Road, Gaithersburg, Maryland  20878, as more particularly described in the Lease, and consisting of approximately 20,713 rentable square feet ("Original Premises").

B.     Landlord and Tenant desire to amend the Lease, among other things, to (i) eliminate that portion of the Premises located on the first floor of the Original Premises consisting of 5,818 rentable square feet ("Relinquished First Floor Premises") as shown as the cross-hatched area on Exhibit A-1 attached hereto, (ii) relocate and reduce the area of certain portions of the Original Premises located on the second floor of the Building, (iii) extend the Term of the Lease for a period of 69 months after the end of the First Extension Term, (iv) provide an abatement of a portion of the Base Rent during the Second Extension Term (as defined below), (v) provide Tenant with an option to terminate the Lease, (vi) grant Tenant an option to extend the Term of the Lease for 5 years, (vii) grant Tenant a termination right if it is unsuccessful in its initial public offering or the option to extend the Term and relocate and reduce the area of certain portions of the Original Premises so that the Premises are confined to a specific area on the second floor of the Building.

AGREEMENT

Now, therefore, the parties hereto agree that the Lease is amended as follows:

1.            Second Extension Term.  The Term shall be extended for a period of 69 months ("Second Extension Term"), beginning on May 1, 2015 ("Second Extension Term Commencement Date") and, unless extended or earlier terminated in accordance with the terms and conditions of the Lease, expiring on January 31, 2021.  For purposes of the Lease, "Term" shall mean, collectively, the Base Term, the First Extension Term, the Second Extension Term, and Third Extension Term (as defined below).

2.            Base Rent for Second Extension Term.  Commencing on the Second Extension Term Commencement Date and subject to the Rental Abatement (as defined below), Base Rent for the Premises shall be payable at the rate of $41,380.01 per month and shall thereafter be increased on each anniversary of the Second Extension Term Commencement Date by multiplying the Base Rent payable for the Premises immediately before such date by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable for the Premises immediately before such date.  Base Rent for the Premises, as so adjusted, shall thereafter be due as provided in the Lease.

	
a.

	
Base Rent Abatement.  Provided Tenant is not then in Default under this Fifth Amendment or the Lease, Landlord hereby grants Tenant an abatement ("Rental Abatement") of the Base Rent payable for the Premises for a period of 13 full calendar months beginning on the Second Extension Term Commencement Date and ending on May 31, 2016.  Thereafter, Tenant shall pay the full amount of Base Rent due in accordance with the provisions of this Fifth Amendment and the Lease.  The Rental Abatement is conditioned on Tenant's full and faithful performance of all of the terms, covenants, and conditions of the Lease to be performed and observed by Tenant during the Term.  On the occurrence of a Default by Tenant and in addition to any other rights and remedies available to Landlord under the Lease, the Rental Abatement shall automatically be deemed deleted from the Lease and of no future force or effect, and the Rental Abatement so given by Landlord shall be prorated with that portion of the Rental Abatement applicable to the remaining Term being immediately due and payable by Tenant to Landlord, and recoverable by Landlord as Additional Rent due under the Lease, on the termination of the Lease.  The acceptance by Landlord of Rent or the cure of the Default that initiated the operation of this paragraph shall not be deemed a waiver by Landlord of the provisions of this paragraph unless specifically so stated in writing by Landlord at the time of such acceptance.  Notwithstanding anything to the contrary in this Fifth Amendment or the Lease, the adjustment in the Base Rent for the Premises shall be based on the full and unabated amount of Base Rent payable with respect to the Premises for the first year after the Second Extension Term Commencement Date.

 

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3.            Reduction in Amount of Security Deposit.  As of the Effective Date, Landlord holds the Security Deposit in the form of a letter of credit in the amount of $52,459.  Effective as of the Effective Date, (a) the Security Deposit shall be reduced to an amount equal to $41,380.01, and Tenant shall deliver to Landlord a replacement letter of credit or an amendment to the existing letter of credit reflecting the reduction in the amount of the Security Deposit, and (b) the definition of Security Deposit in the Basic Lease Provisions shall be changed to the following:  "Security Deposit:  $41,380.01".

4.            Reconfiguration of Premises.  Effective as of the Second Extension Term Commencement Date, (a) Tenant shall surrender the Relinquished First Floor Premises and that portion of the Original Premises located on the second floor of the Building shown as the cross-hatched area on Exhibit A-2 attached hereto as the "Relinquished Second Floor Premises" (collectively, the "Relinquished Premises"), (b) the Premises shall be reconfigured and located exclusively on the second floor of the Building in the configuration shown on Exhibit A-3 attached hereto, and (c) Exhibit A attached to the Original Lease is hereby deleted and replaced with Exhibit A-3 attached hereto.  Tenant shall so surrender full and complete possession of the Relinquished Premises to Landlord vacant, broom-clean, in good order and condition, and in accordance with the provisions of the Lease (including, but not limited to, Section 28), and thereafter the Relinquished Premises shall be free and clear of all leases, tenancies, and rights of occupancy of any entity claiming by, through, or under Tenant.

a.    HVAC Conversion Option.  During the Term, Landlord shall have the right, at its sole cost and expense and in the exercise of its sole discretion, to convert the single pass HVAC system to recirculated HVAC within the Premises as shown on Exhibit C attached to the Fifth Amendment.

5.            Changes to Basic Lease Provisions.  Effective as of the Second Extension Term Commencement Date, the following amendments are hereby made to the definitions contained in the Basic Lease Provisions:

	
a.

	
The defined term "Premises" shall be deleted in its entirety and replaced with the following:

		"Premises:	That portion of the Project, containing approximately 18,931 rentable square feet, as determined by Landlord, located on the second floor of the Building as shown as the cross-hatched area on Exhibit A-3 to the Fifth Amendment to Lease Agreement ("Fifth Amendment") between Landlord and Tenant."

 

 

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b.

	
The defined term "Rentable Area of the Premises" shall mean approximately 18,931 rentable square feet.

 

	
c.

	
The defined term "Tenant's Share of Operating Expenses" shall mean 38.15%.

 

6.            2015 Landlord's Work.  Before the Second Extension Term Commencement Date and subject to Force Majeure Delays, Landlord shall, at its expense, improve certain portions of the second floor of the Building that will form a part of the reconfigured Premises as shown or described on Exhibit B attached hereto ("2015 Landlord's Work"). The 2015 Landlord's Work shall be subject to further revision if Landlord and Tenant, in the exercise of their respective reasonable judgment, mutually agree to any such further revision.  The use of the word "Premises" shall mean the Premises as reconfigured as shown as the cross-hatched area on Exhibit A-3 attached hereto.  If Landlord fails to deliver timely the Premises in the reconfiguration shown on Exhibit A-3 attached hereto, Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and this Fifth Amendment and the Lease with respect to the Premises shall not be void or voidable except as provided pursuant to the terms of this Fifth Amendment.

a.    Acceptance.  (i) Tenant shall accept the Premises in their condition as of the Second Extension Term Commencement Date; (ii) Landlord shall have no obligation for any defects in the Premises, and (iii) Tenant's taking possession of the Premises shall be conclusive evidence that Tenant accepts the Premises and that the Premises were in good condition at the time possession was taken.  Notwithstanding the foregoing provisions of this paragraph, Tenant shall have a period of 180 days after the Second Extension Term Commencement Date to reasonably identify in writing any latent defects in the mechanical, electrical and plumbing systems serving the Premises.  For purposes of this paragraph, "latent defects" means those material defects in such systems that could not have been identified or discovered through a reasonable inspection of such systems conducted by a qualified technician.  Landlord will, at its expense, promptly repair such identified defects.

b.    No Representation or Warranty.  Tenant agrees and acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of all or any portion of the Premises, and/or the suitability of the Premises for the conduct of Tenant's business, and Tenant waives any implied warranty that the Premises are suitable for the Permitted Use.  Tenant shall use the Premises only for the Permitted Use under the Lease in compliance with the provisions of Section 7 of the Lease.

c.    No Work.  Other than the 2015 Landlord's Work, Landlord shall have no obligation to perform any work at the Building in connection with Tenant's occupancy of the Premises or obtain any permits, approvals, or entitlements related to Tenant's specific use of the Premises or Tenant's business operations therein.

d.    ADA Compliance—Operating Expenses.  If and to the extent that Landlord is required to modify or retrofit the base Building to comply with the ADA during the Second Extension Term, any cost or expense incurred by Landlord in connection with such modifications or retrofit work shall not form a part of the Operating Expenses.

7.            Termination of Termination Right.  As of the Effective Date, Section 2 of the Fourth Amendment (Right to Surrender Portion of Premises) is hereby deleted in its entirety and replaced with "Intentionally Deleted."

8.            Amendment to Section 1—Loading Dock Use.  As of the Effective Date, Section 1 of the Lease is hereby amended by adding the following provision at the end thereof:

Tenant shall have the non-exclusive right to use in common with other tenants in the Building the loading dock space located on the second floor of the Building at no additional charge for the Term of the Lease.

 

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9.            Amendment to Section 5 (Operating Expense Payments).  As of the Effective Date, Section 5 of the Lease is hereby amended by adding the following paragraph at the end thereof:

Notwithstanding any contrary provision contained in this Section 5, (i) during the period beginning on the Second Extension Term Commencement Date and ending on the first anniversary thereafter, the Operating Expenses for the Premises shall be capped at an amount equal to $17 per rentable square foot; and (ii) during the Second Extension Term, Operating Expenses shall be capped so that no increase in any calendar year exceeds 5% over the prior year's amount on a non-cumulative basis.  As a result, the actual annual increase in Operating Expenses in any given calendar year from and after calendar year 2015 may be less than or equal to 5% (but shall not exceed 5% in any such year).

10.            Termination Option (New Section 43).  As of the Effective Date, the Lease is hereby amended by adding the following new Section 43 immediately after the end of Section 42:

43.   Termination Option.  Notwithstanding anything to the contrary contained in this Lease, Tenant shall have a one-time option to terminate this Lease ("Termination Option") in accordance with the following terms and conditions:

(a)   Tenant Gives Notice.  If Tenant desires to exercise the Termination Option, Tenant shall give Landlord irrevocable written notice ("Termination Notice") of Tenant's exercise of the Termination Option.  Landlord must receive the Termination Notice no later than the date that is 9 full months before the Termination Date (as defined below), which Termination Date shall be specified in the Termination Notice.  Time is of the essence with respect to Landlord's receipt of the Termination Notice and all other deadlines in this Section.

(b)   Termination Date.  If Tenant gives the Termination Notice and complies with all the provisions in this Section, this Lease shall terminate at midnight at the end of the 36th month or 48th month after the Second Extension Term Commencement Date, as specified by Tenant in the Termination Notice ("Termination Date").

(c)   Termination Fee Must Accompany Termination Notice.  For the Termination Notice to be effective, it must be accompanied by the Termination Fee (as defined below), which Termination Fee shall be payable only in certified funds or by wire transfer in immediately available federal funds to an account designated in writing by Landlord.  For purposes of this Section, "Termination Fee" means an amount equal to the unamortized amounts of (i) 2015 Landlord's Work (as defined in the Fifth Amendment), excluding, however, the costs incurred by Landlord to modify, if Landlord elects to do so in the exercise of its sole discretion, the HVAC system to convert such system from a single pass system to a recirculated HVAC system as shown on Exhibit C attached hereto, (ii) the leasing commissions paid by Landlord in connection with the Fifth Amendment, and (iii) the Rental Abatement (as defined in the Fifth Amendment).  Such amounts, which shall be amortized over the Term on a straight-line basis at an interest rate of 8% per annum, shall be calculated by Landlord.

(d)   Tenant's Obligation Survives Termination.  Tenant's obligations to pay Rent and Additional Rent under this Lease, and to perform all other Lease obligations for the period up to and including the Termination Date, shall survive the termination of this Lease.

(e)   Landlord May Cancel and Void Termination if Tenant in Default.  Notwithstanding the foregoing provisions of this Section, if Tenant shall exercise the Termination Option (in accordance with Section 43(a) above) when it is in Default, then Landlord may elect, but is not obligated, to cancel and declare null and void Tenant's exercise of the Termination Option and this Lease shall continue in full force and effect for the full Term unaffected by Tenant's exercise of the Termination Option.  If Landlord does not cancel Tenant's exercise of the Termination Option after such Default, Tenant shall cure any Default within the period of time specified in this Lease and this obligation shall survive the Termination Date.

 

 

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(f)   Tenant Shall Surrender Space by Termination Date.  If Tenant exercises the Termination Option, Tenant shall surrender full and complete possession of the Premises to Landlord on or before the Termination Date vacant, broom-clean, in good order and condition, and in accordance with the provisions of this Lease (including, but not limited to, Section 28), and thereafter the Premises shall be free and clear of all leases, tenancies, and rights of occupancy of any entity claiming by, through, or under Tenant.

(g)   Failure to Surrender Makes Tenant a Holdover.  If Tenant shall fail to deliver possession of the Premises on or before the Termination Date in accordance with the terms hereof, Tenant shall be deemed to be a holdover tenant from and after the Termination Date, and in such event, Tenant shall be subject to the provisions of Section 8 relating to holdover tenancies.

(h)   Lease Ceases After Termination.  If Tenant properly and timely exercises the Termination Option and properly and timely satisfies all other monetary and non-monetary obligations under this Lease, this Lease shall cease and expire on the Termination Date with the same force and effect as if the Termination Date were the date originally provided in this Lease as the expiration date of the Term.

(i)   No Option After Sublet or Assignment.  If this Lease has been assigned or all or a portion of the Premises has been sublet other than pursuant to a Permitted Assignment, the Termination Option shall be deemed null and void and neither Tenant nor any assignee or subtenant shall have the right to exercise the Termination Option during the term of such assignment or sublease.

11.            Right to Extend Term (New Section 44).  As of the Effective Date, the Lease is hereby amended by adding the following new Section 44 immediately after the end of Section 43:

  

44.   Right to Extend Term.  Tenant shall have the right to extend the Term of this Lease upon the following terms and conditions:

 

(a)  Third Extension Right.  Tenant shall have the right ("Third Extension Right") to extend the Term of this Lease for 5 years ("Third Extension Term") on the same terms and conditions as this Lease (other than Base Rent) by giving Landlord written notice of its election to exercise the Extension Right at least 12 months prior, and no earlier than 9 months prior, to the expiration of the Second Extension Term.  The Third Extension Term shall commence on February 1, 2021 and, unless earlier terminated in accordance with the terms and conditions of this Lease, shall expire on January 31, 2026.  Tenant shall have no further right to extend the Term after the expiration of the Third Extension Term.

 

(b)   Base Rent for Third Extension Term.  Upon the commencement of the Third Extension Term, Base Rent shall be payable at the Market Rate (as defined below).  Base Rent shall thereafter be adjusted on each anniversary of the commencement of the Third Extension Term by a percentage as determined by Landlord and agreed to by Tenant at the time the Market Rate is determined.  As used herein, "Market Rate" shall mean the then market rental rate (including concessions) for space in the Gaithersburg, Maryland market similar to the Premises as determined by Landlord and agreed to by Tenant.  If, on or before the date that is 120 days prior to the expiration of the Second Extension Term, Tenant has not agreed with Landlord's determination of the Market Rate and the rent escalations during the Third Extension Term after negotiating in good faith, Tenant may by written notice to Landlord not later than 120 days prior to the expiration of the Second Extension Term elect arbitration as described in Section 44.b.i below.  If Tenant does not elect such arbitration, Tenant shall be deemed to have waived any right to extend, or further extend, the Term of the Lease and the Third Extension Right shall terminate.

 

 

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i.

	
Within 10 days of Tenant's notice to Landlord of Tenant's election to arbitrate Market Rate and escalations, each party shall deliver to the other a proposal containing the Market Rate and escalations that the submitting party believes to be correct ("Third Extension Proposal").  If either party fails to submit timely a Third Extension Proposal, the other party's submitted proposal shall determine the Base Rent and escalations for the Third Extension Term.  If both parties submit Third Extension Proposals, then Landlord and Tenant shall meet within 7 days after delivery of the most recently delivered Third Extension Proposal and make a good faith attempt to mutually appoint a single Arbitrator (as defined below) to determine the Market Rate and escalations.  If Landlord and Tenant are unable to agree upon a single Arbitrator, then each shall, by written notice delivered to the other within 10 days after the meeting, select an Arbitrator.  If either party fails to give timely notice of its selection for an Arbitrator, the other party's submitted proposal shall determine the Base Rent for the Third Extension Term.  The 2 Arbitrators so appointed shall, within 5 business days after their appointment, appoint a third Arbitrator.  If the 2 Arbitrators so selected cannot agree on the selection of the third Arbitrator within the time above specified, then either party, on behalf of both parties, may request such appointment of such third Arbitrator by application to any state court of general jurisdiction in the jurisdiction in which the Premises are located, upon 10 days prior written notice to the other party of such intent.

 

	
ii.

	The decision of the Arbitrator(s) shall be made within 30 days after the appointment of a single Arbitrator or the third Arbitrator, as applicable.  The decision of the single Arbitrator shall be final and binding upon the parties.  The average of the two closest Arbitrators in a 3 Arbitrator panel shall be final and binding upon the parties.  Each party shall pay the fees and expenses of the Arbitrator appointed by or on behalf of such party and the fees and expenses of the third Arbitrator shall be borne equally by both parties.  If the Market Rate and escalations are not determined by the first day of the Third Extension Term, then Tenant shall pay Landlord Base Rent in an amount equal to the Base Rent in effect immediately prior to the Third Extension Term.  After the determination of the Market Rate and escalations, the parties shall make any necessary adjustments to such payments made by Tenant.  Landlord and Tenant shall then execute and deliver an amendment recognizing the Market Rate and escalations for the Third Extension Term.

 

(c)    An "Arbitrator" shall be any person appointed by or on behalf of either party or appointed pursuant to the provisions hereof and:  (A) shall be (I) a member of the American Institute of Real Estate Appraisers with not less than 10 years of experience in the appraisal of improved office and high tech industrial real estate in the greater Rockville, Maryland metropolitan area, or (II) a licensed commercial real estate broker with not less than 15 years' experience representing landlords and/or tenants in the leasing of high tech or life sciences space in the greater Rockville, Maryland metropolitan area, (B) devoting substantially all of their time to professional appraisal or brokerage work, as applicable, at the time of appointment, and (C) be in all respects impartial and disinterested.

 

 

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(d)    Right Personal.  The Third Extension Right is personal to Tenant and is not assignable without Landlord's consent, which may be granted or withheld in Landlord's sole discretion separate and apart from any consent by Landlord to an assignment of Tenant's interest in this Lease, except that the Third Extension Right may be assigned in connection with any Permitted Assignment of this Lease.

 

(e)    Exceptions.  Notwithstanding anything set forth above to the contrary, the Third Extension Right shall not be in effect and Tenant may not exercise the Third Extension Right:  (i) during any period of time that Tenant is in Default under any provision of this Lease; or (ii) if Tenant has been in Default under any provision of this Lease 3 or more times, regardless of whether the Defaults are cured, during the 12 month period immediately prior to the date that Tenant intends to exercise the Third Extension Right, regardless of whether the Defaults are cured.

 

(f)    No Extension.  The period of time within which Tenant may exercise the Third Extension Right shall not be extended or enlarged by reason of Tenant's inability to exercise the Third Extension Right.

 

(g)   Termination.  The Third Extension Right shall terminate and be of no further force or effect even after Tenant's due and timely exercise of the Third Extension Right, if, after such exercise, but prior to the commencement date of the Third Extension Term, (i) Tenant fails to timely cure any default by Tenant under this Lease; or (ii) Tenant has Defaulted 3 or more times during the period from the date of the exercise of the Third Extension Right to the date of the commencement of the Third Extension Term, regardless of whether such Defaults are cured.

 

12.            IPO; Termination Right/Extension Option (New Section 45).  As of the Effective Date, the Lease is hereby amended by adding the following new Section 45 immediately after the end of Section 44:

45.   IPO.

(a)   IPO Termination Right.  Notwithstanding anything to the contrary contained in this Lease, Tenant shall have a one-time option to terminate this Lease ("IPO Termination Option") in accordance with the following terms and conditions:

(i) Tenant Gives Notice.  By no later than April 30, 2015 ("IPO Termination Date"), Tenant shall notify Landlord in writing if Tenant has secured at least $25,900,000 in financing through an initial public offering of Tenant's stock (such financing threshold being referred to herein as the "IPO Requirement").  If the IPO Requirement has been satisfied, the Fifth Amendment shall remain in full force and effect.  However, if the IPO Requirement has not been satisfied, Tenant shall have the right to exercise the IPO Termination Option by no later than the IPO Termination Date by giving Landlord irrevocable written notice ("IPO Termination Notice") of Tenant's exercise of the Termination Option.  If Tenant does not timely deliver the IPO Termination Notice to Landlord by the IPO Termination Date, Tenant shall be deemed to have waived the IPO Termination Option and the Fifth Amendment, together with this Lease, shall remain in full force and effect.  If Tenant gives the IPO Termination Notice and complies with all the provisions in this Section, this Lease shall terminate at midnight on the IPO Termination Date.  Tenant's obligations to pay Rent and Additional Rent under this Lease, and to perform all other Lease obligations for the period up to and including the IPO Termination Date, shall survive the termination of this Lease.  Time is of the essence with respect to Landlord's receipt of the IPO Termination Notice and all other deadlines in this Section.

 

 

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(ii)   Tenant Shall Surrender Premises by IPO Termination Date.  If Tenant exercises the IPO Termination Option, Tenant shall surrender full and complete possession of the Premises to Landlord on or before the IPO Termination Date vacant, broom-clean, in good order and condition, and in accordance with the provisions of this Lease (including, but not limited to, Section 28), and thereafter the Premises shall be free and clear of all leases, tenancies, and rights of occupancy of any entity claiming by, through, or under Tenant.

 

(iii)   Failure to Surrender Makes Tenant a Holdover.  If Tenant shall fail to deliver possession of the Premises on or before the IPO Termination Date in accordance with the terms hereof, Tenant shall be deemed to be a holdover tenant from and after May 1, 2015, and in such event, Tenant shall be subject to the provisions of Section 8 relating to holdover tenancies.

 

(iv)   Lease Ceases After Termination.  If Tenant properly and timely exercises the IPO Termination Option and properly and timely satisfies all other monetary and non-monetary obligations under this Lease, this Lease shall cease and expire on the IPO Termination Date with the same force and effect as if the IPO Termination Date were the date originally provided in this Lease as the expiration date of the Term.

 

(b)    IPO Extension Option.  Notwithstanding anything to the contrary contained in this Lease, in lieu of exercising the IPO Termination Option, Tenant shall have the right ("IPO Extension Right") to extend the Term for a period of 1 year (i.e., May 1, 2015 to April 30, 2016) ("IPO Extension Period") in accordance with the following terms and conditions

 

(i)    Tenant Gives IPO Extension Notice.  If the IPO Requirement has not been satisfied by the IPO Termination Date, Tenant shall have the right to exercise the IPO Extension Right by so notifying Landlord ("IPO Extension Notice") by no later than the IPO Termination Date.  If Tenant does not timely deliver the IPO Extension Notice to Landlord by the IPO Termination Date, Tenant shall be deemed to have waived the IPO Extension Option.  Time is of the essence with respect to Landlord's receipt of the IPO Extension Notice and all other deadlines in this Section

 

(ii)    Reconfiguration of Premises.  If Tenant timely delivers the IPO Extension Notice to Landlord by the IPO Termination Date, then by no later than May 31, 2015, (A) Tenant shall surrender the Relinquished Premises, (b) the Premises shall be reconfigured and located exclusively on the second floor of the Building in the configuration shown on Exhibit A-4 attached hereto, and (C) Exhibit A attached to the Original Lease is hereby deleted and replaced with Exhibit A-4 attached hereto.  Tenant shall so surrender full and complete possession of the Relinquished Premises to Landlord vacant, broom-clean, in good order and condition, and in accordance with the provisions of the Lease (including, but not limited to, Section 28), and thereafter the Relinquished Premises shall be free and clear of all leases, tenancies, and rights of occupancy of any entity claiming by, through, or under Tenant.  If Tenant timely delivers the IPO Extension Notice to Landlord by the IPO Termination Date, The use of the word "Premises" shall mean the Premises as reconfigured as shown as the cross-hatched area on Exhibit A-4 attached hereto.

 

(iii)    Rent.  During the IPO Extension Period, Base Rent for the Premises shall be payable at the per rentable square foot rate in effect as of April 30, 2015 for the Original Premises, which amount shall thereafter be increased on the anniversary of the Rent Adjustment Date by multiplying the Base Rent payable for the Premises immediately before such date by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable for the Premises immediately before such date.  Base Rent for the Premises, as so adjusted, shall thereafter be due as provided in the Lease.  For the period May 1, 2015 to May 31, 2015, Tenant shall pay Base Rent and Tenant's Share of Operating Expenses for the Relinquished Premises in amounts in effect as of the IPO Termination Date

 

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(iv)    Acceptance.  (A) Tenant shall accept the Premises in their condition as of May 1, 2015; (B) Landlord shall have no obligation for any defects in the Premises, and (C) Tenant's taking possession of the Premises shall be conclusive evidence that Tenant accepts the Premises and that the Premises were in good condition at the time possession was taken.

 

(v)    No Representation or Warranty.  Tenant agrees and acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of all or any portion of the Premises, and/or the suitability of the Premises for the conduct of Tenant's business, and Tenant waives any implied warranty that the Premises are suitable for the Permitted Use.  Tenant shall use the Premises only for the Permitted Use under the Lease in compliance with the provisions of Section 7 of the Lease.

 

(vi)    No Work.  Landlord shall have no obligation to perform any work at the Building in connection with Tenant's occupancy of the Premises or obtain any permits, approvals, or entitlements related to Tenant's specific use of the Premises or Tenant's business operations therein.

 

(vii)    Changes to Basic Lease Provisions. Subject to the provisions of clause (ii) above, effective as of May 1, 2015, the following amendments are hereby made to the definitions contained in the Basic Lease Provisions:

 

A. The defined term "Premises" shall be deleted in its entirety and replaced with the following:

"Premises:That portion of the Project, containing approximately 9,003 rentable square feet, as determined by Landlord, located on the second floor of the Building as shown as the cross-hatched area on Exhibit A-4 to the Fifth Amendment to Lease Agreement ("Fifth Amendment") between Landlord and Tenant."

B. The defined term "Rentable Area of the Premises" shall mean approximately 9,003 rentable square feet.

 

C. The defined term "Tenant's Share of Operating Expenses" shall mean 18.14%.

 

	
13.

	
Miscellaneous.

a.    Terms used in this Fifth Amendment and not otherwise defined shall have the meanings ascribed to them in the Lease.

b.    This Fifth Amendment, together with the letter agreement of even date herewith between Landlord and Tenant relating to Tenant's obligation to pay Landlord for certain costs if Tenant exercises the IPO Termination Right, is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions.  This Fifth Amendment may be amended only by an agreement in writing, signed by the parties hereto.

 

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c.    This Fifth Amendment is binding upon and shall inure to the benefit of the parties hereto, their respective agents, employees, members, representatives, officers, directors, divisions, subsidiaries, affiliates, assigns, heirs, successors in interest and shareholders.

d.    This Fifth Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.  The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this Fifth Amendment attached thereto.

e.    Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, "Broker") in connection with this Fifth Amendment and that no Broker brought about this transaction, other than Scheer Partners, Inc. ("SPI").  SPI shall be paid by Landlord pursuant to a separate agreement between Landlord and SPI.  Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker (other than SPI) claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this Fifth Amendment.

f.    Except as amended and/or modified by this Fifth Amendment, the Lease is hereby ratified and confirmed and all other terms of the Lease shall remain in full force and effect, unaltered and unchanged by this Fifth Amendment.  In the event of any conflict between the provisions of this Fifth Amendment and the provisions of the Lease, the provisions of this Fifth Amendment shall prevail.  Regardless of whether specifically amended by this Fifth Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and intent of this Fifth Amendment.

[Signatures on Next Page]

 

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

TENANT:

OPGEN, INC.,

a Delaware corporation

By:   /s/ C. Eric Winzer                                   (SEAL)

Name: C. Eric Winzer

Title:  Chief Financial Officer

LANDLORD:

ARE-708 QUINCE ORCHARD, LLC,

a Delaware limited liability company

		By:	ARE-GP 708 Quince Orchard QRS CORP.,

a Maryland corporation,

managing member

By:  /s/ Gary Dean______(SEAL)

Name:  Gary Dean________

Title:  SVP - Real Estate Legal Affairs

 

 

 

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