Document:

EXHIBIT
10.44

 

 

COMMERCIAL LEASE

 

WHEREAS the Parties hereto are presently
Lessor and Lessee under a lease agreement dated June 8, 2001 for 6,011 Square
Feet +/- of Premises on the third floor of 135 Beaver St, (‘the Original
Lease”) and

 

WHEREAS the Parties have agreed to an
expansion of the aforesaid Premises, and an extension of the term of the
Original Lease.

 

NOW THEREFORE the Parties agree to a new
lease agreement to be effective upon the dates and conditions stated below, to
replace the Original Lease which shall be moot upon the effective date of the
new lease.

 

 

1.                                       PARTIES:

 

Clematis LLC, a Massachusetts Limited
Liability Company, with a principal place of business at 411 Waverley Oaks
Road, Suite 340, Waltham, MA, 02452, LESSOR, which expression shall include its
heirs, successors, and assigns where the context so admits, does hereby lease
to Interleukin
Genetics, Inc., a Delaware 
Corporation with a principal place of business at 135 Beaver Street,
Waltham, MA  02452, LESSEE, which expression
shall include its successors, executors, administrators, and assigns where the
context so admits, and the LESSEE hereby leases the following described
premises:

 

 

2.                                       PREMISES:

 

19,000 square feet + or - on the third floor at 135
Beaver Street, Waltham, MA, 02452. 
Together with the right to use in common, with others entitled thereto,
the hallways, stairways, and elevators, necessary for access to said leased
premises, and lavatories nearest thereto, as well as the non exclusive use of
sixty five (65) parking spaces serving the building.

 

3.                                       TERM:

 

The term of this lease shall be for five years
commencing on April 1, 2004, or upon substantial completion of the build out,
which ever is later (the “Rent Commencement Date”) and ending on March 31,
2009.

 

4.                                       RENT:

 

The LESSEE shall pay to the LESSOR rent at the rate of
$437,000.00 dollars per year, payable in advance in monthly installments of
$36,417.00, commencing on the Rent Commencement Date.  Thereafter, during the term of the lease, LESSEE shall pay rent
and additional rent to the LESSOR monthly, in advance, not later than the first
day of each calendar month.

 

 

5.                                       SECURITY
DEPOSIT:

 

The LESSEE shall maintain, at all times, a Security
Deposit equivalent, at a minimum, to one month’s Rent, presently $36,417.00.
This Security Deposit obligation includes lease renewals and extensions.

 

6.                                       ADDITIONAL
RENT: 

 

A.  TAX
ESCALATION:  If any tax year
commencing with the fiscal year ending June 2004, the real estate taxes on the
land and buildings, of which the leased premises are a part, are in excess of
the amount of the real estate taxes thereon for the fiscal year ending June
2003    (hereinafter called the “Base
Year”), LESSEE will pay to LESSOR as additional rent hereunder, when and as
designated by notice in writing by LESSOR, 19.8 percent of such excess that may
occur in each year of the term of this lease or any extension or renewal
thereof and proportionately for any part of a fiscal year.  If the LESSOR obtains an abatement of any
such excess real estate tax, a proportionate share of such abatement, less the
reasonable fees and costs incurred in obtaining the same, if any, shall be
refunded to the LESSEE.  LESSEE percent
of expense is calculated as follows: Premises 19,000 sq. ft., divided by total
building 95,989 sq. ft. equals 19.8%.

 

B. OPERATING COST ESCALATION:  The LESSEE shall pay to the LESSOR as
additional rent hereunder when and as designated by notice in writing by
LESSOR, 19.8% of any increase in operating expenses over those incurred during
the calendar year 2003.  Operating
expenses are defined for the purposes of this agreement in Exhibit E.

 

This increase shall be prorated should this lease be
in effect with respect to only a portion of any calendar year.

 

7.                                       UTILITIES:

 

The LESSEE shall pay, as they become due, all bills
for electricity and other utilities (whether they are used for furnishing heat
or other purposes) that are furnished to the leased premises, or are servicing
the leased premises exclusively.  The
LESSOR agrees to provide all other utility service and  reasonable heat and air conditioning (except
to the extent that the same are furnished through separately metered utilities
or separate fuel tanks as set forth above) to the leased premises, during
normal business hours on regular business days of the heating and air
conditioning seasons of each year, to furnish elevator service and to light
passageways and stairways during business hours, and to furnish such cleaning
service as is customary in similar buildings in said city or town.  LESSOR shall not be liable for damages for
any reason, or for any inconvenience, interruption or consequences resulting
from the failure of utilities or any service due to any accident, to the making
of repairs, alterations, or improvements, to labor difficulties, to trouble in
obtaining fuel, electricity, service, or supplies from the sources from which
they are usually obtained for said building, or to any cause beyond the
LESSOR’s control.  If such cause is the
result of the negligent act or

 

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omission of LESSOR, its agents, contractors or
employees and continues for more than five (5) days after notice from LESSEE,
as it’s sole remedy, LESSEE’s rental obligations shall be abated until such
time as the damage or interruption is restored.

 

LESSOR shall have no obligation to provide utilities
or equipment other than the utilities and equipment within the premises as of
the commencement date of this lease.  In
the event LESSEE requires additional utilities or equipment, the installation
and maintenance thereof shall be the LESSEE’s sole obligation, provided that
such installation shall be subject to the written consent of the LESSOR.  If leased premises are not separately
metered LESSEE shall pay LESSOR an Annual Rate of $1.25 per square foot paid
monthly as additional rent.

 

8.                                       USE
OF LEASED PREMISES:

 

The LESSEE shall use the leased premises only for the
purpose of general office, research and clinical lab, and administrative
use.  The LESSEE uses will comply with
Section 3.251 of the Zoning Ordinances of the City of Waltham which provides
that “Research laboratory uses and structures shall comply with all applicable
requirements of the General Ordinances of the City of Waltham and such
regulations as are promulgated thereunder.”

 

9.                                       COMPLIANCE
WITH LAWS:  The LESSEE
acknowledges that no trade or occupation shall be conducted in the leased
premises and the building or use made thereof which will be unlawful, improper,
noisy or offensive, or contrary to any law or any municipal by-law or ordinance
in force in the city or town in which the premises are situated.

 

10.                                 FIRE
INSURANCE:  The LESSEE shall not
permit any use of the leased premises which will make voidable any insurance on
the property of which the leased premises are a part, or on the contents of
said property or which shall be contrary to any law or regulation from time to
time established by the New England Fire Insurance Rating Association, or any
similar body succeeding to its powers. 
The LESSEE shall on demand reimburse the LESSOR, and all other tenants,
all extra insurance premiums caused by the LESSEE’s use of the premises.

 

11.                                 MAINTENANCE:

 

A.  LESSEE’S
OBLIGATIONS:  The LESSEE agrees to
maintain the leased premises in good condition, and whenever necessary, to
replace plate glass and other glass thereinthat is damaged by the negligence of
the LESSEE or servants or agents of LESSEE. 
LESSEE, upon occupancy, acknowledges that the leased premises are then
in good order and the glass whole.  The
LESSEE shall not permit the leased premises to be overloaded, damaged, stripped
or defaced, nor suffer any waste. 
LESSEE shall obtain written consent of LESSOR before erecting any sign
on the premises.

 

B.  LESSOR’S
OBLIGATIONS:  The LESSOR agrees to
maintain the structure of the building of which the leased premises are a part
in the same condition as it is at the commencement of the term or as it may be
put in during the term of this lease, reasonable wear and tear, damage by fire
and other casualty only excepted, unless such maintenance is required because
of the LESSEE or those for whose conduct the LESSEE is legally responsible.

 

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C.  SELF
HELP IN EMERGENCY:  In the event of
an emergency which threatens the safety of individuals or damage to the
building or it’s contents, including personal property, the LESSOR may respond
to the emergency, and any costs incurred by the LESSOR on behalf of the LESSEE,
or due to the acts or negligence of the LESSEE, shall be charged to and
recovered from the LESSEE.  LESSOR shall
not be liable for any damages caused by said emergency, or any action or
omission by the LESSOR under this paragraph.

 

12.                                 ALTERATIONS
- ADDITIONS:

 

The LESSEE shall not make structural alterations or
additions to the leased premises, but may make non-structural alterations
provided the LESSOR consents thereto in writing.  All such allowed alterations shall be at LESSEE’s expense and
shall be in quality at least equal to the present construction.  LESSEE shall not permit any mechanics’
liens, or similar liens, to remain upon the leased premises for labor and
material furnished to LESSEE or claimed to have been furnished to LESSEE in
connection with work of any character performed or claimed to have been
performed at the direction of LESSEE and shall cause any such lien to be
released of record forthwith without cost to LESSOR.  LESSEE shall indemnify and hold the LESSOR harmless from any
losses, costs and claims arising from all such liens.  Any alterations or improvements made by the LESSEE shall become
the property of the LESSOR at the termination of occupancy as provided herein,
except for lab benches and other removable furniture and fixtures.

 

13.                                 ASSIGNMENT
- SUBLEASING:

 

The LESSEE shall not assign or sublet the whole or any
part of the leased premises without LESSOR’s prior written consent, which
consent will not be unreasonably withheld. 
Notwithstanding such consent, LESSEE shall remain liable to LESSOR for
the payment of all rent and for the full performance of the covenants and
conditions of this lease. See Addendum.

 

14.                                 SUBORDINATION:

 

This lease shall be subject and subordinate to any and
all mortgages, deeds of trust and other instruments in the nature of a mortgage
granted by the LESSOR, in existence now or at any time hereafter as a lien or
liens on the property of which the leased premises are a part and the LESSEE
shall, when requested, promptly execute and deliver such written instruments as
shall be necessary to show the subordination of this lease to said mortgages,
deeds of trust or other such instruments in the nature of a mortgage.

 

15.                                 LESSOR’S
ACCESS:

 

The LESSOR or agents of the LESSOR may, at reasonable
times, upon reasonable notice, enter to view the leased premises and may remove
placards and signs not approved and affixed as herein provided, and make
repairs and alterations as LESSOR should elect to do. LESSOR and may show the
leased premises to others, upon reasonable notice and at

 

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reasonable times within six (6) months before the
expiration of the term, may affix to any suitable part of the leased premises a
notice for letting or selling the leased premises or property of which the
leased premises are a part and keep the same so affixed without hindrance or
molestation.

 

16.                                 INDEMNIFICATION
AND LIABILITY:

 

The LESSEE shall indemnify and hold the LESSOR
harmless from all loss and damage occasioned by the negligence of the LESSEE
including loss and damaged occasioned by the use or escape of water or by the
bursting of pipes, as well as from any claim or damage resulting from neglect
in not removing snow and ice from the roof of the building or from the
sidewalks bordering upon the premises so leased, or by any nuisance made or
suffered on the leased premises, unless such loss is caused by the negligence
of the LESSOR.  LESSOR shall not be
liable for damages arising from the natural accumulation of snow and/or ice.
The reasonable removal of snow and ice from the sidewalks bordering upon the
leased premises shall be LESSOR’s responsibility.

 

17.                                 LESSEE’S
LIABILITY INSURANCE:

 

The LESSEE shall maintain with respect to the leased
premises and the property of which the leased premises are a part therein (i)
General Liability Bodily Injury and Property Damage primary liability limit of
$1,000,000 on an occurrence basis with a general aggregate limit of
$2,000,000,  (ii) Umbrella liability
limit of a minimum of $1,000,000,  (iii)
Worker’s compensation statutory liability, (iv) employer’s non-owned and hired
auto at a combined single limit for Bodily injury and Property Damage of
$1,000,000, each in responsible companies qualified to do business in
Massachusetts and in good standing therein insuring the LESSOR as well as
LESSEE against injury to persons or damage to property as provided.  The LESSEE shall deposit with the LESSOR
certificates for such insurance at or prior to the commencement of the term,
and thereafter within thirty (30) days prior to the expiration of any such
policies.  All such insurance
certificates shall provide that such policies shall not be canceled without at
least ten (10) days prior written notice to each assured named therein.

 

The Parties to this lease mutually waive their right
to subrogate against each other for property losses.  Except as provided herein, the Parties to the lease are therefore
responsible for insuring their own property.

 

18.                                 FIRE,
CASUALTY - EMINENT DOMAIN:

 

Should a substantial portion of the leased premises,
or of the property of which they are a part be substantially damaged by fire or
other casualty, or be taken by eminent domain, the LESSOR may elect to
terminate this lease.  When, through no
fault of the LESSEE, such fire, casualty, or taking renders the leased premises
substantially unsuitable for their intended use, a just and proportionate
abatement of rent shall be made, and the LESSEE may elect to terminate this
lease if;

 

(a)                                  The
LESSOR fails to give written notice within thirty (30) days of intention to

 

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restore leased premises, or

(b)                                 The
LESSOR fails to restore the leased premises to a condition substantially
suitable for their intended use within ninety (90) days of said fire, casualty
or taking.

 

The LESSOR reserves, and the LESSEE grants to the
LESSOR, all rights which the LESSEE may have for damages or injury to the
leased premises for any taking by eminent domain, except for damage to the
LESSEE’s fixtures, property or equipment.

 

19.                                 DEFAULT
AND BANKRUPTCY:

 

In the event that:

 

(a)                                  The
LESSEE shall default in the payment of any installment of rent or other sum
herein specified and such default shall continue for five (5) days after the
date said payment is due; or

(b)                                 The
LESSEE shall default in the observance or performance of any other of the
LESSEE’s covenants, agreement, or obligations hereunder and such default shall
not be corrected within thirty (30) days after written notice thereof; or

(c)                                  The
LESSEE shall be declared bankrupt or insolvent according to law, or, if any
assignment shall be made of LESSEE’s property for the benefit of creditors,

 

then the LESSOR shall have the right thereafter, while
such default continues, to re-enter and take complete possession of the leased
premises, to declare the term of this lease ended, and remove the LESSEE’s
effects, without prejudice to any remedies which might be otherwise used for
arrears of rent or other default.  The
LESSEE shall indemnify the LESSOR against all loss of rent and other payments
which the LESSOR may incur by reason of such termination during the residue of
the term, or the LESSOR may elect to be indemnified for loss of rent and other
sums due under this lease by a lump sum payment representing the then present
value of the amount of all sums which would have been paid in accordance with
this lease for the remainder of the term minus the then present value of the
aggregate market rate, as defined below, and additional charges payable for the
premises for the remainder of the term, taking into account reasonable projections
of vacancy and time required to re-lease the premises.  For purposes hereof, market rate shall be
the then current effective rate of rent (adjusted, if necessary, to reflect any
free rent or comparable concessions), being charged for comparable space in
comparable buildings.  For the purposes
of calculating the rent which would have been paid hereunder for the lump sum
payment calculation describe herein, the most recent full year’s tax and
operating expense payments shall be deemed constant for each year
thereafter.  The Federal Reserve
discount rate (or equivalent) plus 3% shall be used in calculating present
values.  If the LESSEE shall default,
after reasonable notice thereof, in the observance or performance of any
conditions or covenants on LESSEE’s part to be observed or performed under or
by virtue of any of the provisions in any article of this lease, the LESSOR,
without being under any obligation to do so and without thereby waiving such
default, may elect to remedy such default for the account and at the expense of
the LESSEE.  If the LESSOR makes any
expenditures or incurs any obligations for the payment of money in connection
therewith, including but not limited to, reasonable attorney’s fees in
instituting, prosecuting or defending any action or proceeding, such sums paid
or obligations insured, with interest at the rate of 12 per cent per

 

6

 

annum and costs, shall be paid to the LESSOR by the
LESSEE as additional rent.  It is
expressly understood and agreed that the LESSEE’s obligation to pay rent, and
any and all additional charges, is independent of any obligation or covenant
entered into by the LESSOR.

 

20.                                 NOTICE:

 

Any notice from the LESSOR to the LESSEE relating to
the leased premises or to the occupancy thereof, shall be deemed duly served,
if addressed to the LESSEE, or if mailed, registered or certified mail, return
receipt requested, postage prepaid, addressed to the LESSEE at LESSEE’s address
in paragraph one, Attention: Chief Operating Officer.  Any notice from the LESSEE to the LESSOR relating to the leased
premises or to the occupancy thereof, shall be deemed duly served, if mailed to
the LESSOR by registered or certified mail, return receipt requested, postage
prepaid, addressed to the LESSOR at such address as the LESSOR may from time to
time advise in writing.  ALL rent
notices shall be paid and sent to the LESSOR at 411 Waverley Oaks Road, Suite
340, Waltham, MA  02452.  Either party, by written notice to the
other, may change the address to which notice is required to be given
hereunder.

 

21.                                 SURRENDER:

 

The LESSEE shall at the expiration or other
termination of this lease remove all LESSEE’s goods and effects from the leased
premises, (including, without hereby limiting the generality of the foregoing,
all signs and lettering affixed or painted by the LESSEE, either inside or
outside the leased premises).  LESSEE
shall deliver to the LESSOR the leased premises and all keys, locks thereto,
and other fixtures connected therewith and all alterations and additions made
to or upon the leased premises, in good condition, damage by fire or other
casualty only excepted.  In the event of
the LESSEE’s failure to remove any of LESSEE’s property from the premises upon
the expiration or other termination of the lease, LESSOR is hereby authorized,
without liability to LESSEE for loss or damage thereto, and at the sole risk of
LESSEE, to remove and store any of the property at LESSEE’s expense, or to
retain same under LESSOR’s control or to sell at public or private sale,
without notice any or all of the property not so removed and to apply the net
proceeds of such sale to the payment of any sum due hereunder, or to destroy
such property.

 

In the event that LESSEE continues to occupy, control
or remain in any part of the Leased Premises beyond the expiration or earlier
termination of the Term of this Lease, including any extensions thereto, such
holding over shall not be deemed to create any tenancy, but the LESSEE shall be
a Tenant at Sufferance only and shall be liable for all loss, damage or
expenses incurred by the LESSOR. All other terms of this Lease shall apply,
except that use and occupancy payments shall be due in full monthly
installments which shall be paid to LESSOR at the times and manner determined
by the LESSOR, in advance and in an amount equal to the greater of two times of
either of the following: (i) Basic Annual Rent, additional rent and other sums
due under the Lease, including any extensions thereto, immediately prior to
termination, or (ii) LESSOR’s then published rent for the Leased Premises.  It is expressly understood and agreed that
such extended occupancy is a Tenancy at Sufferance only, solely for the benefit
and convenience of the LESSEE and is of greater rental value.  If

 

7

 

LESSEE continues to occupy, control or remain in all
or any part of the Leased Premises beyond noon of the last day of any monthly
rental period, said action shall constitute LESSEE’s occupancy for an entire
additional month, and increased payment as provided by this section, shall be
due and payable immediately in advance. 
LESSOR’s acceptance of any payments from LESSEE during such extended
occupancy shall not alter LESSEE’S status as a Tenant at Sufferance.

 

22.                                 LATE
FEES:

 

LESSEE agrees that because of actual damages for a
late payment or a dishonored check are difficult to fix or ascertain, but
recognizing that damage and injury result therefore, LESSEE agrees that if
payments of rent and other obligations are not received in hand by LESSOR five
(5) days after the date it is due, LESSEE agrees to pay liquidated damages
equal to five percent (5%) of the total delinquent amount owed.  The postmark on the payment, received plus
two (2) days, shall be conclusive evidence of whether the payment is
delinquent.  LESSEE agrees to pay a
liquidated damage of $25.00 for each dishonored check.  In the event that two or more of the
LESSEE’s checks are dishonored in a 12 month period, the LESSOR, in addition to
other Rights, shall have the right to demand payment by Certified Check or
Money Order.

 

23.                                 BROKERAGE:

 

LESSOR and LESSEE represent to each other that neither
party has dealt with any broker or any other person in connection with showing
the property or premises or with this lease other than Glenn Commercial
Group.  LESSOR and LESSEE agree that
each will hold harmless and indemnify the other from any loss, cost, damage and
expense, including reasonable attorney’s fees incurred by LESSOR or LESSEE for a
commission or finder’s fee as a result of the falseness of this representation.

 

24.                                 OTHER
PROVISIONS:

 

It is also understood and agreed that the following
attached items are part of this agreement.

 

•                                          Addendum

•                                          Exhibit
A - Floor Plan

•                                          Exhibit
B - LESSOR’s work

•                                          Exhibit
C - Building Rules and Regulations

•                                          Exhibit
D - Description of Premises on which Leased Premises are located

•                                          Exhibit
E - Building Operating Expenses

•                                          Exhibit
F - Cleaning Schedules

•                                          LESSOR
and LESSEE agree that so long as the LESSEE is not in default under the
Original Lease for the Premises consisting of 6,011 sq. ft. +/- on the third
floor of the building upon commencement of the term of this Lease the Original
Lease shall be deemed terminated and of no further effect.

•                                          Buyout
Option:

After 24 months of the Lease Term, if LESSEE requires
additional space and

 

8

 

LESSOR cannot provide additional space in any of the
“Duffy” properties in Waltham or Lexington, LESSEE may cancel this lease with
six (6) months written notice to LESSOR. The Notice shall be accompanied by a
payment of a Buy Out Fee. The Buy Out Fee shall be a pro rata reimbursement
of  LESSOR’s unamortized build out costs
for the added 13,989 Sq. Ft.. These costs include Lessor’s $100,000 allowance
towards Tenant Improvements 
contemplated in Exhibit B only. The build out costs are amortized over
the sixty (60) rental months of the Lease Term, without interest thereon..

 

 

IN WITNESS WHEREOF, the said parties hereunto set their hands and seals
this 13th day of February, 2004.

 

	
  LESSEE

  	
   

  	
  LESSOR

  
	
  Interleukin Genetics, Inc.

  	
   

  	
  Clematis LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    s/s Fenel M. Eloi

  	
   

  	
  By:

  	
    s/s Norman J. Duffy

  	
   

  
	
  Fenel Eloi, COO

  	
   

  	
  Duffy Bros. Management
  Company, Inc.,

  
	
   

  	
   

  	
  Manager Duly Authorized

  
	
   

  	
   

  	
  Norman J. Duffy, President

  
						

 

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LEASE ADDENDUM

 

1.                                       LESSEE
shall not change the color or appearance of the outside of the leased premises.

 

2.                                       LESSEE
shall not post signs on exterior of the premises.

 

3.                                       The
parking spaces shall not be used for dead storage of vehicles or other
merchandise or material.

 

4.                                       LESSEE
shall not keep or store any vehicles, containers, merchandise or refuse outside
the leased premises.

 

5.                                       LESSEE
shall be responsible to dispose of LESSEE’s own trash and refuse except for
normal waste basket trash.

 

6.                                       (A)
If upon request for consent to assign or sublease, the LESSOR prefers to resume
possession of the space which the LESSEE wishes to sublet, LESSOR may refuse
consent.  In that event, this lease
shall terminate at a mutually agreed date, with respect to the proposed
sublease space, and the parties hereby agree, thereupon, to mutually release
each other from rights and obligations of this agreement, with respect to the
proposed sublease space. They shall deem the term of the agreement, for the
sublease space, as expiring at the mutually agreed date.

 

(B) The LESSEE may, however upon written notice to
LESSOR, sublease to a parent, affiliate or subsidiary of the LESSEE.

 

(C) If an assignment or sublease is entered into,
LESSEE shall, within thirty (30) days of receipt thereof, pay to LESSOR fifty
percent (50%) of any rent, sum or other consideration to be paid or given in
connection with such assignment or sublease, either initially or overtime, in
excess of the base rent and additional rent and other charges to be paid under
this lease (“Sublease Profits”) as if such amount were originally called for by
the terms of this lease as additional rent, provided that, prior to the
division of the Sublease Profits in the manner noted above, the LESSEE may
deduct reasonable and customary expenses directly incurred by LESSEE which are
attributable to the transfer, including, legal fees and brokerage commissions
paid by LESSEE in connection with the assignment or sublease.

 

(D) LESSEE shall reimburse LESSOR from LESSEE’s
portion of the Sublease Profits for reasonable LESSOR’s attorneys’ fees for
examination of and/or preparation of any documents in connection with such
assignment or subletting in an amount up to but not to exceed $2,500.00.

 

7.                                       LESSEE
may maintain the insurance required to be carried by LESSEE under blanket
policy of insurance insuring LESSEE and other companies affiliated with LESSEE.

 

8.                                       LESSOR
during the term shall maintain with a responsible insurance company or
companies an all risk fire insurance policy with extended coverage insuring the
property containing the premises against loss or damage caused by fire and
other occurrence in an amount equal to the full replacement cost to the
building.

 

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Exhibit A

Floor Plan

LESSOR:  Clematis LLC

LESSEE:  Interleukin
Genetics, Inc.

 

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Exhibit B

 

Lessor’s
Work

 

LESSOR:  Clematis LLC

 

LESSEE:  Interleukin Genetics Inc.

 

 

•                  Lessor will
perform all Tenant Improvements indicated on Exhibit A.  Lessor grants Lessee an allowance of up to
$100,000.00 towards these Tenant Improvements, Lessee shall be solely
responsible for any additional costs in excess of this allowance.

 

•                  In addition to
the above-mentioned allowance, provided Lessee selects the paint colors and
carpeting from Lessor’s samples, Lessor will paint and install new carpet in
the 12,989 sq. ft. expansion space at Lessor’s expense.

 

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EXHIBIT C

 

BUILDING RULES AND REGULATIONS

 

1.                                       Every
reference herein to “LESSOR’s Consent” means “prior written consent of the
LESSOR in each instance”.

 

2.                                       The
sidewalk, entry, passages, elevator, and stairways shall not be obstructed by
the LESSEES and shall not be used by them for any other purpose than for
ingress and egress to and from their respective premises. Excepted from this
restriction is use of these facilities for purpose of moving furniture and equipment
to or from the Premises, which is permitted outside of normal office hours and
on a non-interference basis with respect to other occupants of the Building.

 

3.                                       The
floors and windows that receive or admit light into passageways, or into any
place in said building, shall not be obstructed by any LESSEE. The elevators,
water closets, and other water apparatus shall not be used for any purpose
other than those for which they were constructed, and no sweepings, rubbish,
rags, ashes or unsuitable substances, shall be added to them.

 

4.                                       No
sign, advertisement, or notice shall be placed on any part of the outside or
inside of the building.

 

5.                                       No
auction sales shall be conducted in or around the building.

 

6.                                       No
LESSEE shall smoke tobacco in any part of the building.  Upon notice from the LESSOR, LESSEE shall
immediately cease all activity in and around the building which, in the
discretion of the LESSOR, constitutes noisy, offensive or disruptive activity.  LESSEE shall be responsible for the acts and
actions of their employees, agents, invitees and assigns.

 

7.                                       The
lease shall not at any time exceed floor capacity of one hundred and
twenty-five pounds per square foot.  All
damage done to the building by taking in or out a safe or other heavy or bulky
object, or during the time it is in or on the premises, shall be repaired at
the expense of the responsible LESSEE. Each LESSEE is required to notify and
arrange with the building superintendent when safes, furniture, or like
property are to be taken into or out of the building. No freight, furniture, or
bulky package or matter of any description shall be carried on the elevators
except as shall not by their size, weight or nature damage the elevators, and
which shall be loaded and carried only with appropriate protective measures,
and which elevating shall not inhibit or restrict normal pedestrian traffic.

 

8.                                       No
LESSEE may change any locks without the LESSOR’s consent.

 

9.                                       No
LESSEE shall use any method of heating or cooling other than that provided by
the LESSOR, without the LESSOR’s consent.

 

10.                                 Each
LESSEE shall keep the premises in a good state of cleanliness, and for such
purposes shall, during the continuance of the lease, make use of the cleaning
service for the building unless other arrangements have been approved by LESSOR
in writing, and no tenant shall employ any person or persons other than the
cleaning service for the building for the purpose of cleaning, or of taking
charge of the premises unless other arrangements have been approved by LESSOR
in writing. Each LESSEE agrees that the LESSOR shall be in no way responsible
to any LESSEE for any loss

 

13

 

of property from the premises, however occurring, or
for any damage done to the LESSEE’s furniture or other effects by the cleaning
service for the building or any of its employees, unless LESSEE shall establish
gross negligence or willful wrongdoing by such person or persons.

 

11.                                 Nothing
shall be thrown out of the windows or doors or down the passages or light
shafts or upon the skylights of the building or upon or into any heating or
ventilating register or plumbing apparatus of the building, or be placed or
left upon any outside windowsill, fire escape or other projection of the
building.

 

12.                                 No
animals shall be kept in or about the building.

 

13.                                 No
LESSEE will introduce or admit into the building any telephone or telegraph
wire or any other means of external communication without the LESSOR’s consent,
other than by connection to outlets provided by the LESSOR, and the LESSOR
reserves the right to rescind such consent at any time, in which case the
LESSEE agrees to remove any such wire or means, provided, that LESSOR shall not
restrict LESSEE’s means of external communication in any manner which unreasonably
interferes with the operation of LESSEE’s business.

 

14.                                 No
machine or machinery of any kind other than office equipment, including but not
limited to typewriters, computers, copiers and Fax Machines, shall be operated
on or in the building, without the LESSOR’s consent.

 

15.                                 All
complaints by a LESSEE shall be made in writing to the LESSOR.  Each tenant shall give to the LESSOR’s
building superintendent prompt written notice of any damage known to LESSEE or
defect in pipes, wires, appliances or fixtures in or about the premises and of
any damage to any part of the premises.

 

16.                                 LESSEE
shall not be permitted to use or keep in the building any kerosene, burning
fluid, or other illuminating material or inflammable or explosive substance or
materials, except as customary in office or computer facilities with the
LESSOR’s consent; any such fluids kept on the premises to be stored in
accordance with state and local fire regulations.

 

17.                                 No
LESSEE shall use or permit any room or portion thereof to be used by anyone for
the purpose of lodging or sleeping therein.

 

18.                                 The
LESSOR reserves the right to rescind any of these rules and to make such other
and further reasonable and uniform rules and regulations as in its reasonable
judgment may from time to time be needful for the safety, care, and cleanliness
of the building, and for the preservation of good order therein; such other and
further rules; provided, however, that such rules shall not be inconsistent
with the proper and rightful enjoyment by the LESSEE under the within lease of
the premises.

 

14

 

EXHIBIT
D

 

LEGAL
DESCRIPTION OF PREMISES ON WHICH

LEASED PREMISES ARE LOCATED

 

A certain parcel of land in Waltham, Middlesex County, Massachusetts
situated on the southerly side of Waverley Oaks Road and the easterly side of
Beaver Street, shown as Lot 1 on a Plan of Land entitled “Plan of Land in
Waltham, MA”, dated May 15, 1996 and revised on May 31, 1996 by Beals and
Thomas Inc., 200 Fribeg Parkway, Westbourough, MA and recorded with the
Middlesex South District Registry of Deeds as Plan 530 of 1996 and in Book
26405, Page 482.

 

Beginning at a point on the southerly side line of Waverley Oaks Road,
said point being 195.00 feet  easterly
of a point of curvature shown as said plan, then;

 

NORTHEASTERLY by Waverley Oaks Road two hundred nineteen 12/100
(219.12) feet;

 

SOUTHEASTERLY by Lot 2 four hundred seven 91/100 (407.91) feet;

 

NORTHEASTERLY by Lot 2 twenty-seven 75/100 (27.75) feet;

 

SOUTHEASTERLY by Lot 2 one hundred nine 19/100 (109.19) feet;

 

SOUTHWESTERLY by Land now or formerly owned by the Commonwealth of
Massachusetts one hundred thirty six 92/100 (136.92) feet;

 

SOUTHWESTERLY by Land now or formerly owned by the Commonwealth of
Massachusetts by a curve of five hundred eighty-eight 01/100 (588.01) feet
radius and a length of seventy 92/100 (70.92) feet;

 

SOUTHWESTERLY by Lot 3 one hundred thirty-six 63/100 (136.63) feet;

 

NORTHWESTERLY by Beaver Street two hundred ninety-two 27/100 (292.27)
feet;

 

NORTHEASTERLY by Land now or formerly owned by Shell Oil Co. one
hundred forty five 00/100 (145.00) feet;

 

NORTHWESTERLY by Land now or formerly owned by Shell Oil Co. one
hundred fifty-two 48/100 (152.48) feet to the point of beginning.

 

Lot 1 contains 164,032 square feet of land, more or less

 

For title reference see deed dated March 1, 1985 and recorded with
Middlesex South District Registry of Deeds, Book 16037, Page 119 and deed dated
June 12, 1996 and recorded with said Registry in Book 26405, Page 484.

 

15

 

EXHIBIT E

 

OPERATING EXPENSES

 

 

I.                                         Operating
Expenses shall consist by way of example the following items of building costs:

 

1.                                       Labor,
materials, supplies and services for all maintenance and cleaning of the
building, its machinery and other personal property; and for maintenance,
cleaning, snow removal and landscape care on the exterior of premises.

 

2.                                       Allowance
equal to 5% of Rent for general supervisory, administrative expenses and
management fees.

 

3.                                       Cost
of Waste disposal.

 

4.                                     Costs
of License, inspection and permit fees.

 

5.                                       Heat,
air conditioning and ventilation for the building and lighting and power for
common areas.

 

6.                                       Janitorial
and cleaning services.

 

7.                                       Maintenance,
repair, and service contracts.

 

8.                                       Security
expenses including watchmen, guards and security services.

 

9.                                       Insurance
including fire, casualty, general liability, property damage, etc.

 

10.                                 Reserves
for capital replacement and improvements, equal to 2% of Rent for the
replacement value of capital equipment. However, expenditures for such capital
replacements and improvements are specifically excluded.

 

11.                                 Water,
sewer and general utility charges.

 

16

 

EXHIBIT F

 

CLEANING SCHEDULE

 

 

NIGHTLY:                             Between
the hours of 5:00 p.m. and 6:00 a.m., Monday through Friday, legal holidays
excluded.

 

1.               Restrooms

•                  Dust and spot
clean all toilet partitions, tile walls and receptacles.

•                  Refill all
dispensers including soap, toilet tissue, paper towels, etc.

•                  Dust mop or
sweep floors thoroughly; wash and rinse using a germicidal detergent.

•                  Empty all trash
receptacles and replace plastic liners.

•                  Clean and polish
all chrome fittings and bright work, including shelves, flushometers and metal
dispensers.

•                  Clean, sanitize
and polish all fixtures including toilet bowls, urinals and sinks using a
germicidal detergent solution.

•                  Clean and
sanitize both sides of toilet seats with a germicidal detergent solution.

•                  Clean and polish
all mirrors and glass.

 

2.                Empty and clean
all waste receptacles, ash trays and sand urns.

 

3.               Wash and clean
water fountains with a germicidal detergent solution.

 

4.               Office rubbish
removal.  Empty wastebaskets and replace
liners, resulting from business office use, not included manufacturing or
product packaging materials, the removal and disposal of this type of  rubbish is Tenants responsibility.

 

5.               Vacuum carpeted
areas as needed.

 

6.               Dry mop, wet mop
and burnish tile floors to a polished appearance and/or vacuum and spot clean
carpeting.

 

7.               Wet wipe table tops
in employee lounge, including cleaning of any spills, if applicable.

 

8.               Keep sidewalks and
parking area clean and rubbish free.

 

9.               Clean entrance door
glass to remove finger marks, smudges, etc.

 

17

 

WEEKLY

 

1.               Dust rails and
sills or as needed.

2.               Sweep stairwells
and landings or as needed.

3.               Edge vacuum and
moldings.

4.               Keep lawn and
landscaping properly maintained, if applicable.

 

QUARTERLY

 

1.               HVAC filters
cleaning and/or changing filters on roof tops and air handlers.

(Lab areas and specialized sections not included)

 

ANNUALLY

 

1.                    Wash
all windows inside and out.

 

Note:                                  Lab
areas and specialized sections to be omitted.

 

18EXHIBIT
10.45

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

 

DISTRIBUTION
AGREEMENT

 

THIS DISTRIBUTION AGREEMENT (this “Agreement”) is made
as of February 26, 2004 (the “Effective Date”), between ACCESS BUSINESS GROUP
INTERNATIONAL LLC (“Access”), a Michigan limited liability company with its
principal place of business at 7575 East Fulton Road, Ada, Michigan 49355,
United States; and INTERLEUKIN GENETICS INC. (“Seller”) a Delaware corporation
with its principal place of business at 135 Beaver Street, Waltham,
Massachusetts 02452.

 

WHEREAS, Access
and Seller have entered into an Exclusive License Agreement dated as of March
5, 2003 (the “License Agreement”) pursuant to which Seller has licensed certain
technology to Access for use within certain fields including, without
limitation the Nutrigenomics Field (as defined in the License Agreement);

 

WHEREAS, the
parties wish to enter into this agreement to describe the terms pursuant to
which Seller will provide Genetic Tests (as defined below) to Access for resale
to third parties; and

 

WHEREAS, Quixtar
Inc. (“Quixtar”), an affiliate of Access, shall sell Genetic Test Kits (as
defined below) to its Independent Business Owners (“IBOs”).

 

The parties agree as follows:

 

1.                                       Purchase.  Subject to the terms of this Agreement,
during the Term (as defined below), Access shall purchase from Seller, and
Seller shall provide to Access, *** Genetic Tests.  Such purchases shall be made at any time during the period
commencing on the Effective Date and continuing until the first anniversary of
the date on which Seller first obtains the Required Certifications (the
“Term”).  Except as otherwise provided
in this Agreement, such purchases shall be made via purchase orders under
Access’ standard terms and conditions of purchase, a copy of which is attached
hereto as Exhibit A.  If there is any
conflict between such terms and conditions and of this Agreement, then the
terms of this Agreement shall prevail.  As used in this Agreement, (a) a “Genetic Test” means a genomic
test used to determine appropriate recipients of a Nutrigenomics Consumable (as
such term is defined in the License Agreement) which shall include a report
prepared by Seller in accordance with CLIA requirements (a “Report”) a sample
copy of which is attached hereto as Exhibit B and (b) a “Genetic Test Kit”
means the product to be provided by Quixtar to IBOs that is used for the
collection of genetic materials from end-users.  During the Term of this Agreement, Access will provide Seller
with a rolling non-binding forecast of projected purchases of Genetic Tests for
each ensuing 12-month period, which forecast shall be updated each month during
the Term of this Agreement. In connection therewith (a) Access shall use
reasonable efforts to distribute its purchase of Genetic Tests from Seller as
evenly as possible over the Term and (b) Seller shall not be obligated to
provide more Genetic Tests in any single calendar month than it can reasonably perform,
provided, however, that Seller agrees that it has the capacity to provide  *** Genetic Tests per month.

 

2.                                       Conditions
to Purchase.  The obligations
of Access under Section 1 shall be subject to the receipt by Access of evidence
to its reasonable satisfaction that (a) the Genetic Tests will be performed in
a clinical laboratory that has obtained all certifications required (the
“Required Certifications”) under the Clinical Laboratory Improvement Act of
1988, as amended 

(“CLIA”), (b)

 

 

Seller, such laboratory,
and the Genetic Tests to be provided by Seller in such laboratory are each in
full compliance with all applicable industry standards and applicable laws,
regulations, and standards and (c) the distribution of Genetic Tests by Access
or its affiliates shall not, in Access’ reasonable determination, subject
Access to a material risk with respect to product liability.  Access agrees and acknowledges that, at
certain volumes, Seller may subcontract the Genetic Tests to other laboratories
(“Reference Labs”), provided that any such Reference Lab meet the Required
Certifications under CLIA, and Seller provides such documentation to Access at
least thirty (30) days prior to the effectiveness of any subcontract.

 

3.                                       Payment
Terms.  The price for each Genetic
Test is ***.  Such price is inclusive of
the testing services and analysis contemplated by the Genetic Test, and the
Reports to end-users without further charge, but exclusive of value-added,
sales or other applicable taxes, transportation costs and substantial
modifications to the Reports. Access shall pay for development costs in the
event of substantial modifications to the Report, as requested by Access. If
substantial modifications to the Reports are required pursuant to applicable
law, Seller shall bear the cost thereof. Access shall provide written notice to
Seller within ten (10) days of the sale by Quixtar of each Genetic Test Kit to
an IBO.  Seller shall invoice Access
within 30 days of its delivery of a Report to the end user or other party,
pursuant to applicable law.  Payment is
due within thirty (30) days of receipt of such invoice.  Overdue payments shall bear interest at the
rate of one percent (1%) per month until paid in full.

 

4.                                       Warranties.  Seller represents and warrants to Access that
(a) except for sales of Genetic Tests to Access prior to the receipt by Seller
of the Required Certifications as described in Section 1 of this Agreement,
prior to the sale of any Genetic Test under this Agreement, it shall have
necessary qualifications, expertise, authority, registrations, licenses, and
permits to enable it to perform its obligations under and contemplated by this
Agreement; (b) the services and reports included in connection with each
Genetic Test shall be performed in a professional manner in accordance with
industry standards, free from material faults and defects; (c) the Genetic
Tests shall conform in all material respects to all  specifications and performance criteria standards or other requirements
that are agreed upon by Seller and Access and included to in the packaging of
the Genetic Test; (d) except for sales of Genetic Test prior to the receipt by
Seller of the Required Certifications as described in Section 1 of this
Agreement, the Genetic Tests and the services associated therewith shall comply
with all applicable federal, state and local laws and regulations; (e) to the
knowledge of Seller, (i) Seller is the owner of all right, title and interest
in and to, or otherwise holds a license under, the intellectual property associated
with the  Genetic Tests and (ii) its
performance of the Genetic Tests contemplated by this Agreement does not
infringe the patent rights of any third party; and (f) Seller shall supervise
the Reference Labs to the extent necessary to provide quality assurance of the
Genetic Tests  at the same level as
provided at Seller’s own facility. 
Seller has and follows, and will continue to have and follow, adequate
quality and security procedures that will assure that the Genetic Tests will
comply with the foregoing representations and warranties.  Upon written request, Seller shall give
Access certificates of compliance with respect to applicable laws and
regulations.  Access’ approval of any
specification or other standards shall not relieve Seller of any of its
warranties under this Section.  Seller’s
warranties extend to future performance of the services and survive inspection,
tests, acceptance and payment.  Seller
shall extend to all end-users to which it provides Genetic Tests the warranty
set forth on Schedule A attached hereto and incorporated herein by reference
(the “End-User Warranty”).

 

5.                                       Term;
Termination.   This Agreement
shall commence on the Effective Date and shall continue until expiration of the
Term.  Either party may terminate this
Agreement by written notice to the other party if the other party is in
material default in the performance of any of its obligations hereunder  and fails to remedy such default within 30
days after receiving written notice of such default.  In addition, either party may immediately terminate this
Agreement by written notice to the other: 
(a) if the other party has ceased its business activities or has
otherwise begun winding up its business affairs; (b) if bankruptcy, reorganization,
arrangement or insolvency proceedings, or other proceedings for relief under

 

2

 

any bankruptcy or similar
law or laws for the relief of debtors, are instituted by or against the other
party and are consented to or are not dismissed within 60 days after such
institution; (c) if a custodian, liquidator, receiver or trustee is appointed
for the other party or the major part of its property and is not discharged
within 60 days after such appointment; (d) if the other party becomes insolvent
or bankrupt, is generally not paying its debts as they become due, makes any
assignment for the benefit of its creditors or makes any comparable arrangement
with its creditors; (e) upon the occurrence of any Force Majeure Event (defined
below) that delays performance of the other party of this Agreement for more
than 30 days; or (f) if the conditions set forth in Section 2 are not satisfied
in the first quarter of 2005.  The
termination of this Agreement shall not affect any of the provisions of this Agreement
that by their nature are intended to continue after termination, including but
not limited to Section 4 (Warranties), this Section, Section 7
(Indemnification), and Section 17 (Confidentiality).

 

6.                                       Exclusivity.  Seller agrees that Access shall be the
exclusive worldwide distributor of the Genetic Tests for use in the
Nutrigenomics Field (as defined in the License Agreement).

 

7.                                       Indemnification.

 

(a)                                  Indemnification
by Seller.  Seller shall
defend, indemnify and hold Access (including its affiliates members, managers,
directors, officers, employees, agents, IBOs, customers, and end-users)
harmless from and against any damages, claims, costs and expenses (including
actual attorneys’ fees and recall costs and expenses) arising from or relating
to (i) any breach or misrepresentation by Seller under this Agreement and (ii)
any claim by an end-user of the Genetic Test.

 

(b)                                 Indemnification
by Access.  Access shall
defend, indemnify and hold Seller (including its members, managers, directors,
officers, employees, agents, customers, and end-users) harmless from and
against any damages, claims, costs and expenses (including actual attorneys’
fees and recall costs and expenses) arising from or relating to (a) any breach
or misrepresentation by Access under this Agreement, (b) the manufacture, use
or sale by Access, or the use by any end-user, of any Genetic Test Kits.

 

(c)                                  Procedures.  If any action, suit, proceeding or claim
shall be commenced in respect of which a party may demand indemnification, the
indemnified party shall notify the indemnifying party to that effect with
reasonable promptness.  The indemnifying
party shall have the opportunity to defend against such action, suit,
proceeding or claim.  The indemnified
party shall have the right to employ its own counsel and participate in the
defense of any matter at its own expense. 
If the indemnifying party fails to defend as required hereunder, the
indemnified party may defend itself at the indemnifying party’s expense.  Each party shall render to the other
assistance as may be reasonably required in connection with the defense of any
such matter.

 

(d)                                 Product
Recall.  If the Genetic Tests
Kits constitute a health or safety hazard or risk, or if the Genetic Test Kits
or their distribution becomes the subject of heightened governmental
regulation, then Access shall have the right to recall such Genetic Test Kits
at its sole expense; provided, that, if the reason for the recall is the
Genetic Test, then Seller shall pay the reasonable costs of such recall.

 

8.                                       Insurance.  Seller shall maintain insurance coverage
that will fully protect both Seller and Access from any and all claims and
liabilities of any kind or nature for property damage, personal injury, death
and economic damage, to any person, that arises from the performance of the
Genetic Tests or any activities connected with the Genetic Tests, including the
following:

 

3

 

	
  Product
  Liability

  	
   

  	
  U.S.

  	
  $  1,000,000
  (per occurrence)

  	
   

  
	
  General
  Liability

  	
   

  	
  U.S.

  	
  $  1,000,000
  (per occurrence)

  	
   

  
	
  Workers’
  Compensation

  	
   

  	
  Statutorily
  Required Coverage

  	
   

  
	
  Excess Liability
  (Umbrella Form)

  	
   

  	
  U.S.

  	
  $  3,000,000

  	
   

  

 

Seller further
agrees to furnish to Access, upon written request on and after the Effective
Date, insurance certificates which will confirm its insurance coverage in the
amounts referenced above, to arrange for its liability insurance carriers to
include Access as an additional insured under its standard vendor’s product
liability insurance policy and to arrange for its insurance carriers to include
as part of all such certificates the requirement to furnish 30 days advance
written notice to Access of any material change in, or cancellation or
termination of, such insurance policies.

 

9.                                       Force
Majeure.  Subject to the other
provisions of this Agreement, in the event that either party is unable to
perform any of its obligations under this Agreement because of natural
disaster, actions or decrees of governmental bodies that would require
licensure, certifications, or similar qualifications, or events or causes
beyond the control of the affected party (a “Force Majeure Event”) all
obligations of the affected party under this Agreement shall be immediately
suspended, provided that such affected party promptly gives the other party
notice of the occurrence of the Force Majeure Event.  The affected party shall use commercially reasonable efforts to
eliminate the obstacles preventing its performance and to resume its
performance under the Agreement as soon as possible.

 

10.                                 Assignment;
No Third-Party Beneficiaries. 
Neither party shall assign, transfer or subcontract this Agreement or
any part of this Agreement, directly or indirectly, without the other party’s
prior written consent; provided, however, that either party may, without the
written consent of the other, assign this Agreement and its rights and delegate
its obligations hereunder to its affiliates, or in connection with the transfer
or sale of all or substantially all of such party’s assets or business related
to this Agreement, or in the event of its merger, consolidation, change in
control or similar transaction.  This
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
and against the respective successors and permitted assigns of each of the
parties to this Agreement.  Nothing
expressed or implied in this Agreement will be construed to give any person or
entity other than the parties to this Agreement any legal or equitable right,
remedy, claim under or with respect to this Agreement or any provision of this
Agreement.

 

11.                                 Notices.  All notices and other communications under
this Agreement shall be in the English language, in writing and shall be deemed
to have been duly given when either personally delivered, or sent by facsimile
or sent by express delivery service with charges prepaid and receipt requested,
or, if those services are not available, when mailed (postage prepaid) by
certified mail with return receipt requested, to the parties at their
respective addresses set forth below. 
Any party may change its address by written notice to the other party.

 

	
  Interleukin
  Genetics Inc.

  
	
  135 Beaver
  Street – 2nd Floor

  
	
  Waltham,
  Massachusetts 02452

  
	
  Attn:  Fenel Eloi

  
	
   

  
	
  Access Business
  Group International LLC

  
	
  7575 Fulton
  Street East

  
	
  Ada, Michigan
  49355

  
	
  Attn:  Director-Strategic Procurement

  

 

4

 

12.                                 Entire
Agreement; Amendments.  This
Agreement contains the entire agreement of the parties (except as it may be
supplemented by a purchase order) and replaces all prior agreements and
understandings.  This Agreement may be
amended, modified, superseded, or canceled and any of the terms or conditions
in this Agreement may be waived, only by a written instrument signed by each
party to this Agreement or, in the case of a waiver, by or on behalf of the
party waiving compliance.  The failure
of any party at any time to require performance of any provision in this
Agreement shall not affect the right at a later time to enforce that or any
other provision.  No waiver by any party
of any condition, or of any breach of any term contained in this Agreement, in
any one or more instances, shall be deemed to be a further or continuing waiver
of that or any other condition or breach. 
No course of dealing between the parties or usage of trade shall be
effective to amend, supplement, modify, or otherwise alter, in whole or in
part, the express terms of this Agreement.

 

13.                                 Expenses.  Each party shall bear their own expenses
associated with the preparation and negotiation of this Agreement.  In the event of any dispute or if it becomes
necessary to enforce the provisions of this Agreement, the successful party
shall be entitled to recover reasonable expenses, including attorneys and other
professional fees, in addition to any other available remedy.

 

14.                                 Severability.  This Agreement shall be interpreted in all
respects as if any invalid or unenforceable provision were omitted from this
Agreement.  All provisions of this
Agreement shall be enforced to the full extent permitted by law.

 

15.                                 No Agency.  This Agreement does not in any way create
the relationship of principal and agent, employer and employee, partner or
joint venturer between Seller and Access or any of its affiliates.  Under no circumstances shall Seller or its employees
be considered to be the agents or employees of Access, or vice versa.  Neither Seller nor Access shall (a) act or
attempt to act or represent itself directly or by implication, as agent or
employee of the other or in any manner, (b) assume or create or attempt to
assume or create, any obligation on behalf of or in the name of the other, or
(c) make any representations, guarantees, or warranties on behalf of or in the
name of the other with respect to any matter.

 

16.                                 Governing
Law; Venue.  This Agreement
shall be governed by and shall be construed in accordance with the internal
laws of the State of Michigan, without regard to conflicts of law
principles.  Each party (a) agrees that
any litigation arising out of this Agreement may be brought only in the state
or federal courts whose jurisdiction includes Kent County, Michigan, (b)
consents to the jurisdiction of such courts, and (c) waives any argument that
any such court is an inconvenient forum.

 

17.                                 Confidentiality.  Any public announcement or similar publicity
with respect to this Agreement shall be issued, if at all, at such time and in
such manner as Access and Seller shall reasonably agree. Unless agreed to by
the parties in advance or if and to the extent required by law or a national
securities exchange on which a party’s securities are listed, each party shall
keep this Agreement strictly confidential and may not make any disclosure of
this Agreement to any person or entity. 
Prior to any such mandated disclosure, the disclosing party shall seek
confidential treatment of pricing, purchase, and other similar terms contained
in this Agreement.

 

18.                                 Counterparts.  This Agreement may be executed in one or
more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

 

5

 

IN WITNESS WHEREOF, the parties have entered into this
Distribution Agreement as of the date first set forth above.

 

 

	
  ACCESS BUSINESS
  GROUP

  	
   

  	
  INTERLEUKIN
  GENETICS INC.

  
	
  INTERNATIONAL
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Jay Ertl

  	
   

  	
  By:

  	
  /s/ Fenel M.
  Eloi

  
	
   

  	
  Jay Ertl

  	
   

  	
   

  
	
  Its:

  	
  Vice President,
  Product Supply

  	
   

  	
  Its:

  	
  Chief Financial
  Officer

  
						

 

6

 

EXHIBIT B

 

	
  

  	
   

  	
   

  

 

IL-1
TEST REPORT

 

NAME:

 

REPORT DATE:

 

This is a research
test for
informational and internal purposes only. It is not intended to
diagnose, treat or prevent a specific disease or assess a specific health
condition.  It is intended to provide
personalized information to individuals who are interested in further knowledge
to improve or maintain health and wellness.

 

RESULTS:

 

Your IL-1 gene
variation test result is:

 

Pattern  1

 

Your individual composite
genotype is:

 

	
  IL-1A (+4845)

  	
   

  	
  IL-1B (+3954)

  	
   

  	
  IL-1B (-511)

  

 

This pattern has
been associated in clinical studies with a higher level of chronic inflammatory
response and, in some cases, with an increased risk for cardiovascular
disease.  The interpretation of your
IL-1 DNA test is based on three large clinical studies which found that
individuals with pattern 1 had a 3 to 5 fold increased risk of heart attack or
death from cardiovascular disease than individuals who did not have pattern
1.   This level of increased risk is in
the range of the risk associated with many of the other, “conventional”
cardiovascular risk factors.  By knowing
your individual genotype, you can now make diet and lifestyle changes to
address this previously unknown risk factor. 
We encourage you, with the help of health and nutrition professionals,
to use this information to develop your own personalized strategy for
minimizing risk to cardiovascular disease.

 

The prevalence of
pattern 1 is approximately 37% in populations of European descent. This
frequency may differ in other ethnic groups.

 

BACKGROUND  INFORMATION:

 

In recent years,
medical researchers have firmly established the existence of several factors
that, when present in an individual, place that person at increased likelihood
or “risk” of developing cardiovascular disease.  These factors are often referred to by doctors as “conventional
cardiovascular risk factors”.   The most
prominent among them are high blood pressure, smoking, diabetes, obesity, high
cholesterol levels and physical inactivity.

 

Interleukin
Genetics Inc  • 135 Beaver Street • Third Floor •
Waltham •
MA •
01890 •
Tel: 781-398-0700 • Fax: 781-398-0720

 

 

Despite all the
progress made through the study of conventional cardiovascular risk factors, it
has long been clear that their presence does not account for all of the causes
of cardiovascular disease.  Recent
scientific discoveries indicate that some of the previously unexplained causes
of cardiovascular disease may be due to specific variations in DNA that each of
us have inherited through our families.  
Just as is the case for the conventional cardiovascular risk factors,
the mere presence of one or more of these DNA variations does not mean that an
individual will definitely develop cardiovascular disease. However, being aware
that these factors are present can be helpful in taking steps to reduce risk.

 

Thus, we have
analyzed your DNA to identify this additional risk factor. Specifically, we
have identified individual variations in the Interleukin gene that influences
the level of inflammation in your body.

 

 

	
  Signature of Chief Medical Officer:

  	
   

  	
   

  

 

 

 

TERMS
AND CONDITIONS OF PURCHASE

 

The order on the
reverse side is subject to the following:

 

1.               The term “Supplier”
shall mean the person or entity to whom or which this Purchase Order is
directed irrespective of whether the Supplier acts in the capacity of seller,
buying agent acting on behalf of Buyer, selling agent acting on behalf of a
seller, or any other capacity.

 

2.               No
conditions, terms or provisions inserted by Supplier in acknowledging and
accepting this Order shall be effective unless the same are accepted in writing
by Buyer.  The failure of Supplier to
acknowledge this Purchase Order in writing within ten (10) days of the date of
receipt thereof, or the commencement of performance required by this offer,
shall be conclusive evidence of Supplier’s approval of and consent to all terms
and conditions of purchase herein contained.

 

3.               Terms:
As stated on reserve side, but invoice not payable until shipment inspected and
accepted by Buyer.  In the event Buyer
makes payment of invoice within the period allowed for the purpose of obtaining
cash discount offered, such payment shall not prejudice the right of Buyer to
return articles found defective or which fail inspection and receive credit or
reimbursement from Supplier:

 

Individual invoices showing order number and purchase
item number must be issued against this Order.

 

Buyer reserves right to return all invoices submitted
incorrectly, and Purchase Order terms shall be determined as of date latest
correct invoice received.

 

Shipping container must be labeled or marked to
identify contents without opening, and contain packaging slip’s listing
contents.

 

Buyer’s Purchase Order number must appear on all
packing slips, delivery tickets and bills of lading, issued in connection with
such order and must be marked “partial” or “complete” for each delivered item.

 

4.               Prices:
Invoices showing higher costs than printed on the Order will be subject to a
charge-back for difference.  Price
changes must be approved by the Buyer in writing.  Buyer is to receive the benefits of any price decreases up to the
specified date of shipment.

 

5.               Advance
Manufacture and Shipments: Supplier shall not manufacture in advance
of Supplier’s normal flow time or deliver any material in advance of the
schedule set forth in this order without Buyer’s written permission.

 

6.               Inspection
& Audit: All articles furnished under this Purchase Order are
subject to inspection and acceptance within 30 days of delivery at Buyer’s
plant, not withstanding any payments or other prior inspection.  Lots of articles furnished under this
Purchase Order which exceed a 1% defect level or the percentage stated on the
applicable Defect Check List, may be 100% inspected by Buyer at Supplier’s
expense.  At Buyer’s option, defective
articles may be returned at Supplier’s expense (including packaging and
shipping) for sorting, correction, replacement or credit as Buyer elects.

 

Supplier agrees that its plant, or such parts thereof
as may be engaged in the performance of this order shall be subject to
inspection by Buyer and its authorized representative during normal business
hours.

 

7.               General
Warranty and Indemnification: Supplier expressly warrants that all
articles to be delivered under this Purchase Order will be free from defects of
material and workmanship and will conform to applicable drawings,
specifications, samples or other written descriptions given under this order,
whether or not attached hereto, and, to the extent the subject articles are not
manufactured pursuant to design originated by Buyer, that same are free of any
defect in design.  This warranty shall
run to Buyer and its successors for the article furnished under this order.  In connection with such articles, Supplier
shall defend any product liability claim or suit against Buyer or its customers
and shall indemnify and save harmless Buyer and its customers from and against
any and all damages, expenses and judgments which Buyer or its customers may
suffer, incur or sustain as a result thereof.

 

8.               Subcontracts:
Except for articles proprietary to Supplier, no subcontracts hereunder shall be
made by Supplier herein with any other party for furnishing any of the
completed or substantially completed articles, spare parts or work herein
contracted for, without the prior written consent of Buyer.

 

9.               Patent
Protection: To the extent the subject articles are not manufactured
pursuant to design originated by Buyer, Supplier agrees to indemnify Buyer and
its customers for all loss and expense arising from claims (by suit or
otherwise) of patent and/or trademark infringements resulting from Buyer’s or
its customer’s use or sale of products supplied by Supplier under this order.

 

10.         Engineering
Information: Supplier agrees that all drawings, specifications,
samples and/or written disclosures forming a part of this order, either by
reference or otherwise, are the property of Buyer and are submitted in
confidence with the understanding and agreement by Supplier that such drawings,
specifications, samples, and/or written disclosures so marked shall not be
utilized, in whole or in part, by Supplier, either for itself or by it on
behalf of any other person, firm or corporation, without written permission of
Buyer.

 

11.         All
commissions to create or contribute a specific work described on the front side
of this Purchase Order (the “Work”) are hereby accepted by Supplier for value
received.  All material delivered to
Buyer or contributed to the Work shall be reproduced and distributed by
Buyer.  Supplier and Buyer hereby agree
that the Work is a “work made for hire” as that term is defined in the
Copyright Law of the United States of America and that Buyer is entitled to
claim authorship as defined in the Copyright Law and ownership of the copyright.  To the extent not otherwise assigned by
operation of law, supplier hereby assigns or agrees to assign to Buyer its
entire right, title and interest in the Work, including all copyrights.

 

12.         Packaging:
All items shall be packed by Supplier in suitable containers for protection to
permit safe transportation and handling. 
No charge shall be made by Supplier for packaging unless provided for on
reverse side.

 

13.         Toxics in
Packaging Reduction Laws: Vendor guarantees that packaging and
packaging components manufactured and/or supplied to Buyer, and delivered to
Buyer on or after January 1, 1992, do not contain lead, cadmium, mercury, or
hexavalent chromium that has been intentionally introduced during manufacturing
or distribution of said package or packaging components.  Should incidental levels of lead, cadmium,
mercury, or hexavalent chromium be present, these levels conform with allowable
limits prescribed by all applicable federal, state, and local laws, statutes,
rules, regulations, and ordinances.

 

14.         Assignment:
Supplier may not assign this order without prior written consent of Buyer.  Claims for monies due or to become due under
this order may be assigned by Supplier provided Supplier shall supply Buyer
promptly with two copies of any such assignment.  Payment to an assignee of any such claim shall be subject to
setoff or recoupment for any present or future claim or claims which Buyer may
have against Supplier.  Buyer reserves
the right to make direct settlements and/or adjustments in price with Supplier
under the terms of this order, notwithstanding any assignment of claims for
monies due or to become due hereunder and without notice to the assignee.

 

15.         Changes:
Buyer may, at any time and from time to time, by Purchase Order Amendment
issued to Supplier:  (a) make changes in
shipping and packing instructions; (b) increase or decrease the quantity of
products ordered; (c) change the drawings or specifications; (d) issue a
suspension of work order; (e) make changes in the delivery schedule.  If such changes cause an increase or
decrease in the amount of work hereunder or in the cost of performance, or in
the time required for performance, an equitable adjustment shall be made in the
contract price and/or the delivery schedule and the Purchase Order shall be
amended in writing accordingly.  Any
claims for adjustment under this clause must be asserted within sixty (60) days
from the date of the Purchase Order Amendment. 
Failure of Supplier to make written notice thereof shall, upon
expiration of the sixtieth (60) day, be construed as a waiver for any such
adjustment.  All articles covered
hereunder shall be manufactured in accordance with this purchase order unless a
change thereto is subsequently authorized by a written Purchase Order Amendment
issued by Buyer.

 

16.         Termination:
Buyer may terminate work under this Purchase Order in whole or in part at any
time by notice to Supplier in writing. 
Supplier will thereupon immediately stop work on this Purchase Order or
the terminated portion thereof and notify its subcontractors to do
likewise.  Except where such termination
is caused by a default or delay of Supplier, Supplier shall be entitled to
reimbursement for its actual costs incurred up to and including the date of
termination, applicable to the termination and in accordance with the
recognized accounting practices. 
Supplier shall also be entitled to a reasonable profit on the work done
prior to such termination at a rate not exceeding the rate used in establishing
the original purchase price.  The total
of such claim shall not exceed the cancelled commitment value of this purchase
order.  Termination claim shall be
subject to Inspection and Audit provisions of clause 6 above.

 

17.         Termination
for Default: Buyer may terminate this Purchase Order, or any part
thereof, by written or telegraphic notice of default to Supplier signed by
Buyer under any of the following circumstances:

 

A.           If
Supplier refuses or fails to make deliveries or perform the services within the
time specified or extensions thereof agreed to in writing by Buyer.

 

B.             If
Supplier fails to comply with any of the other provisions of this Purchase
Order, or so fails to make progress as to endanger performance of this Purchase
Order in accordance with its terms, and does not cure any such failure within a
period of ten (10) days (or such longer period as Buyer may authorize by
written notice signed by Buyer) after receipt of notice from Buyer specifying
such failure.

 

C.             If
Supplier becomes insolvent or is subject to proceedings under any law relating
to bankruptcy, insolvency, or the relief of debtors.

 

In the event of
such termination, Buyer shall be free to purchase similar supplies elsewhere or
secure the manufacture and delivery of such supplies by contract or otherwise,
and Supplier shall be liable to Buyer for any excess cost to Buyer, provided,
however, Supplier shall not be liable to Buyer for such excess cost when the
default of Supplier is due to causes beyond its control, i.e., Acts of God,
strikes, National Emergency, etc., provided further, Supplier shall not be
excused from liability unless Supplier has notified Buyer in writing of the
existence of such cause within ten (10) days from the beginning thereof.

 

18.         Law
Governing: This Purchase Order shall be governed by the laws of the
State of Michigan and the parties agree and consent to the jurisdiction of the
courts located in Grand Rapids, Michigan to resolve any dispute arising out of
this transaction.

 

19.         Any
waiver of strict compliance with the terms hereof by Buyer shall not constitute
a waiver of Buyer’s right to insist upon strict compliance with the terms of
this order hereafter.

 

20.         Taxes:
Buyer shall not be liable for any federal, state or local taxes unless
separately stated on the Purchase Order.

 

21.         Acceptance
of this order constitutes certification by Supplier that any advertising
allowances and other merchandising payments and services given in connection
herewith are being made available on proportionally equal terms to all other
customers competing in the distribution of the ordered products or commodities.

 

22.         Safety
Requirements: All machinery and equipment must meet the safety
standards of the Federal Occupational Safety and Health Act of 1970 (Public Law
No. 91-596) and the applicable state safety statutes.

 

23.         Supplier
shall be required to furnish a certificate that the articles listed on this
purchase order were produced in compliance with all applicable requirements of
Section 6, 7 and 12 of the Fair Labor Standards Act of 1938 as amended, and of
the regulations and orders of the Administrator of the Wage and Hour Division
issued under Section 14 thereof.

 

In the event that any articles listed on this Purchase
Order are in a misbranded package within the meaning of the Federal Hazardous
Substances Act, the Federal Food, Drug and Cosmetic Act, the Federal
Insecticide, Fungicide and Rodenticide Act, or the Federal Fair Packaging and
Labeling Act, the Poison Prevention Packaging Act of 1970, or any other
federal, state or municipal law, ordinance or regulation, the Supplier agrees
to pay all costs of relabeling and such other costs as are necessary so that
the article will fully comply with the applicable federal, state or municipal
laws or regulations.  Supplier agrees to
furnish buyer an analysis of the contents and/or characteristic of the product
sold pursuant to this Purchase Order.

 

24.         Supplier
hereby agrees that the products which are the subject of this agreement, which
bear labels approved by Buyer, and which are identified by one or more of
Buyer’s trade name and trademarks shall be sold only to Buyer and shall not be
sold to any other person, firm, or corporation, including any distributor of
Buyer’s products.  All packages or
containers in which product sold hereunder is packaged must be marked clearly
with the Buyer part number shown on the first page of this order.

 

25.         Supplier
shall not, under any circumstances, divulge or release Buyer’s name as being a
customer of Supplier to any person, association, corporation, or governmental
agency without prior written authority from Buyer.

 

26.         In
the event any ingredient and/or materials used by Supplier in the manufacture
or fabrication of Buyer’s products are declared by any governmental agency to
be unsafe or unfit for the use contemplated, Supplier shall notify Buyer, and
Supplier shall immediately cease and desist from the further use of such
ingredients or materials, and Buyer shall be released from any further
obligations hereunder.  Supplier shall
furnish to Buyer copies of all documents issued by such governmental agency
imposing any requirement or restriction upon Supplier together with responses
by Supplier showing compliance or non-compliance.  Supplier shall resume production of products for Buyer only after
written notice to Buyer that substitute materials of like quality have been
approved by such governmental agency and Buyer has approved in writing the
resumption of production by Supplier.

 

27.         Insurance:
If Supplier performs labor or services within the plant or on premises of
Buyer, Workers Compensation plus Liability Insurance Certificate must be
submitted to and approved by Buyer before such labor or service begins.

 

28.         CUSTOMS,
EXPORT/IMPORT REQUIREMENTS:

 

(1)          Supplier
shall supply, upon request and without delay, all information and documentation
deemed necessary by Buyer and/or Customs authorities to comply with Customs,
Export and Import requirements of the country(s) of export and country(s) of
importation of the goods.

 

(2)          Supplier
shall be solely responsible for complying with U.S. Country(s) of Origin
Marking requirements, established by U.S. law and U.S. Customs Service rulings,
for goods to be imported into the United States.

 

(3)          Supplier
shall be solely responsible for compliance of products with technical
compliance and origin marking requirements of the applicable country(s) of
importation.

 

(4)          Supplier
hereby transfers to Buyer all transferable customs duty and import tax drawback
or refund rights, if any, relating to the goods (including rights developed by
substitution and rights which may be acquired from Supplier’s suppliers).  Supplier shall inform Buyer of the existence
of any such drawback or refund rights and, upon Buyer’s request, shall supply
Buyer with such documents and information as may be required to obtain such
drawbacks or refunds.

 

 

Riders

 

Rider 1 (to be
attached as a schedule)

Schedule A

 

End-User Warranty

 

Seller shall warrant to each end-user of the Genetic
Test that the Genetic Test shall be
performed by Seller in accordance with applicable CLIA requirements by
individuals who are appropriately experienced and qualified to perform such
test.

 

 

Rider 2 (to be
included after the Warranty Section

 

5.                                  Warranty Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN
THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY
TECHNOLOGY, GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT
AND HEREBY DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NONINFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

 

6.                                   Limited Liability.   NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT OR OTHERWISE, NEITHER THE SELLER NOR ACCESS WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY INDIRECT,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS OR COST OF
PROCUREMENT OF SUBSTITUTE GOODS OR TECHNOLOGY.

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