Document:

Exhibit
10.6

 

CONFIDENTIAL
TREATMENT

 

AMENDMENT
NO. 2

to the

MANUFACTURING AND SUPPLY
AGREEMENT

entered into as of
September 30, 2001

by and between

ACS Dobfar, SpA and
Cubist Pharmaceuticals, Inc.

 

This AMENDMENT NO. 2 (“Amendment
No.  2”), to that certain Manufacturing and Supply Agreement (the
“Agreement”) entered into as of September 30, 2001, is made this 12th
day of February, 2003, by and between ACS Dobfar, SpA, an Italian corporation
(“ACSD”) and Cubist Pharmaceuticals, Inc., a Delaware corporation (“Cubist”).
Unless otherwise defined herein, capitalized terms used but not defined herein
shall have the meaning set forth in the Agreement, and the Agreement shall be
amended to incorporate any additional definitions provided for in this
Amendment No. 1, including definitions in the preamble and recitals hereto.

 

WHEREAS, Cubist
and ACSD desire to amend the Agreement as set forth in this Amendment No. 1;

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual promises made herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to amend the Agreement as
follows:

 

1.                                       Amendment of Section 2.1.  The Agreement is hereby amended by deleting
Section 2.1 thereof in its entirety and replacing it with the following Section
2.1:

 

2.1                               Facility
Construction and Timetable

 

(a) By [*] (the Facility Completion Target Date), ACSD will construct,
equip, test and qualify (IQ/OQ/PQ) and make operational the Facility in
accordance with current Good Manufacturing Practices. ACSD’s obligations
hereunder include, but are not limited to:

 

(i)                                     construction
of building(s) necessary to perform the Process in a dedicated Facility;

 

(ii)                                  provision
of [*] for production of commercial batches of Product;

 

(iii)                               the
[*] of all required [*] for the manufacturing and warehousing of Product and
validation of Process: and

 

(iv)                              [*]
to manufacture Product.

 

Subject to adjustment in accordance with Section 2.2,
ACSD will complete all activities and to meet all dates set forth in this
Agreement. ACSD agrees that the following events (the “Targets”) shall occur by
[*]: (i)  ACSD shall produce [*] full
commercial consistency batches for FDA registration of the Facility;  (ii) all data and reports related thereto
shall be completed and ready for submission to the FDA; (iii) ACSD shall
commence validation processes; and (iv) ACSD will be prepared in all respects
for a site inspection by the FDA.  The
target date for FDA approval of the NDA Manufacturing Supplement for the ACSD
facility (the Facility Approval Target Date) is
[*]. In addition, ACSD shall (i) complete IQ/OQ/PQ and validation of the
fermentation process by [*]; and (ii) complete

 

* CONFIDENTIAL TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED
WITH THE COMMISSION 

 

 

theconsistency batches, the IQ/OQ/PQ, and the [*]
validation batches for the purification process by [*].   ACSD agrees that time is of the essence in
completing the tasks set forth in this Section 2.1 in order to comply with ACSD’s
obligation to supply Product in [*].  In
connection with ACSD completing all activities required to meet the
aforementioned dates, Cubist shall remit to ACSD [*]of [*] on each of (i) the
date of execution by both parties of this Amendment No. 2 (the “February
Payment”);  (ii)May 1, 2003 (the “May
Payment”); and (iii) August 1, 2003 (the “August Payment”).

 

(b) By March 1, 2003,
ACSD and Cubist shall mutually agree upon a schedule for all tasks required to
meet the Targets set forth in section 2.1(a) above (the “Schedule”). In the
event that, in Cubist’s sole discretion, Cubist determines that the Schedule
will not enable [*], the May and August Payments shall not be payable to ACSD
and ACSD shall promptly refund to Cubist the February Payment.

 

2.                                       Amendment of Section 3.2.  The Agreement is hereby amended by deleting
Section 3.2 thereof in its entirety and replacing it with the following Section
3.2:

 

3.2                               Process
Validation

 

ACSD will develop and complete a validation process at
the Facility in accordance with Exhibit D herein, and at ACSD
expense. [*] and limits for the process must span the [*]and limits developed
and documented during the manufacture of consistency batches at [*]. No Process
changes will be made during the period beginning on [*] and ending on the [*].
All post-validation process changes must be approved by Cubist in writing.
Cubist will provide [*] and [*]as such reports become available. ACSD will
provide Cubist with a [*]for the Facility and Process.

 

3.                                       Amendment of Section 3.3.  The Agreement is hereby amended by deleting
Section 3.3 thereof in its entirety and replacing it with the following Section
3.3:

 

3.3                               Process
Improvements

 

Following the [*] of the date of the Facility
Approval, ACSD may continue operating [*] Process improvements with the prior
written approval of Cubist. No Process improvements will be made during the
period beginning on [*] and ending on the [*]. 
[*]for the purpose of improving ACSD’s margins will be entirely at ACSD’s
expense. ACSD will reimburse Cubist for any additional Cubist expenses [*]. All
[*] related to the [*] will be implemented only after [*]. The authorization
will be obtained in writing following a successful and complete cGMP change
control process outlined in the approved standard operating procedures (SOPs)
of both ACSD and Cubist.

 

4.                                       Amendment of Section 3. The
Agreement is hereby amended by adding the following Section 3.5 immediately
following the end of Section 3.4 of the Agreement

 

* CONFIDENTIAL TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED
WITH THE COMMISSION 

 

2

 

3.5                               Q.A.
Director

 

In order to ensure and maintain consistent quality
assurance with respect to the Product and the process, on or before April 1,
2003 ACSD shall have hired, with the
approval of Cubist (which approval shall not be unreasonably withheld), a
full-time Quality Assurance Director and shall engage an independent validation
consultant, each with significant experience in the process of manufacturing
and supply of pharmaceutical products.

 

5.                                       Amendment of Section 5.1.  The Agreement is hereby amended by deleting
Section 5.1 thereof in its entirety and replacing it with the following Section
5.1:

 

5.1                               Purchase
Commitment

 

Contingent upon the receipt of the necessary Product
and Facility Approvals, Cubist will purchase a [*] kilograms of Product during
the term of this Agreement, [*] and further subject to the [*]. In the event
that the [*], or the [*], Cubist shall not be required to purchase [*] kg of
Product [*] or in any other year during the term of the Agreement.
Notwithstanding anything to the contrary herein, ACSD will [*] to be delivered
in the year [*] and, if longer, the [*], in accordance with the commercial
Process specified in the Exhibits B-1, C-1 and D herein which may be modified
in writing by Cubist from time to time. To the extent that there is any
conflict between the specifications set forth in Exhibit C-1 and those set
forth in Exhibit B-1, the specifications set forth in Exhibit C-1 shall
supersede in all respects. During the period prior to the receipt of Product
Approvals, Cubist [*] in accordance with Exhibits B-1, C-1,
and D herein. Any such Product purchases shall count toward the [*]
kilograms of Product that Cubist is required to purchase. Subject to the
conditions of this Agreement, Cubist agrees to make the following yearly
purchases:

 

	
  Year

  	
   

  	
  Purchase Minimum(kg)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2004

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  [*]*

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [*]

  	
   

  

 

The above schedule will be extended for any delays
caused by ACSD.

 

6.                                       Amendment of Section 5.6.  The Agreement is hereby amended by deleting
Section 5.6(a) in its entirety and replacing it with the following Section
5.6(a)

 

* CONFIDENTIAL TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED
WITH THE COMMISSION 

 

3

 

5.6                               Obligation
to Supply

 

(a)          ACSD shall accept and
fill each order for Product submitted by Cubist [*], provided that such request
is delivered to ACSD at least [*] days prior to the beginning of the
corresponding quarter. ACSD shall not be in breach of this Section 5.6 if
[*].  Delivery dates will be set
independently from Product release and invoice dates as described in Section
5.7;

 

7.                                       Amendment of Section 6.1.  The Agreement is hereby amended by deleting
Section 6.1 thereof in its entirety and replacing it with the following Section
6.1:

 

6.1                               Product
Price

 

(a)                                  Subject
to the provisions of Sections 5, 6 and 7, Cubist will [*], including the
additional [*] kg required to be purchased by Cubist in [*], at a price of [*]
per kilogram (USD [*]/kg);

 

8.                                       Amendment of Section 6.2.  The Agreement is hereby amended by deleting
Section 6.2 thereof in its entirety and replacing it with the following Section
6.2:

 

6.2                               Product
Price [*]

 

Cubist will pay ACSD [*] per kilogram (USD [*]) on the
[*] purchased over the life of the contract other than the [*] kgs of Product
[*] in [*] until cumulative [*] payments equal [*] (USD [*]). Once the
cumulative [*] payments have accrued to [*] (USD [*]), Cubist will immediately
stop paying the [*] and will pay [*] per kilogram (USD [*]/kg) of Product, as
provided in Section 6.1 herein.

 

	
  Year

  	
   

  	
  Purchase

  Minimum

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  

 

* CONFIDENTIAL TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED
WITH THE COMMISSION 

 

4

 

The above schedule will be extended for any delays
caused by ACSD. In the event that Cubist [*] as provided in Section 5.1, Cubist
will pay [*] corresponding to the original minimum purchase commitment in the
year specified in this Section 6.2. Any delays [*] (including, but not limited,
to [*]) will extend [*].

 

9.                                       Amendment of Section 7.  The Agreement is hereby amended by deleting
Section 7 thereof in its entirety and replacing it with the following Section
7:

 

7.                                      Exclusivity

 

ACSD covenants that it will not promote, sell, deliver
or provide any Product or Daptomycin to any third party without the prior
written consent of Cubist, or produce any product, bulk drug substance or
active pharmaceutical ingredient in the Facility other than the Product.
Notwithstanding the foregoing, ACSD shall be permitted to produce vancomycin
(the “Competing Product”) in the Facility for Eli Lilly & Company, provided
that the following conditions have been and continue to be met at all times:

 

(i)                                     ACSD
has met all of the Targets and as well as the Facility Approval Target Date;

 

(ii)                                  ACSD
fills all Product orders in accordance with the schedules set forth in Cubist’s
Purchase Orders;

 

(iii)                               ACSD,
at its cost, completes all cleaning validation processes in accordance with FDA
requirements; and

 

(iv)                              At
Cubist’s request, ACSD Promptly purchases separate, dedicated additional
columns that will be used solely for the production of the Product.

 

In the event that any of conditions (i) through (iv)
are not met, ACSD shall lose its right to produce the Competing Product and
shall cease production thereof upon receipt of written notice from Cubist.

 

10.                                 Amendment of Section 12.1.  The Agreement is hereby amended by deleting
Section 12.1 thereof in its entirety and replacing it with the following
Section 12.1:

 

12.1                        Term

 

This Agreement shall take effect as of the Effective
Date and shall remain in effect until the seventh anniversary of Facility
Approval or until ACSD has received all payments due under Section 6.2 unless
sooner terminated in accordance with Section 12.2 or extended in accordance
with this Section 12.1. Thereafter, this Agreement shall automatically renew
for additional two-year terms. Not later than the sixth (6h)
anniversary of the Effective Date, Cubist shall notify ACSD in writing whether
Cubist desires to extend the Agreement for an additional two years. All 

 

* CONFIDENTIAL TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED
WITH THE COMMISSION 

 

5

 

applicable terms and conditions of this Agreement
shall remain in effect during such extension term, unless expressly amended in
writing by the parties. Cubist may renew this Agreement for additional two-year
extension terms by providing written renewal notice to ACSD not later than
twelve (12) months prior to the expiration of the then current extension term.

 

11.                               Amendment of Section 12.2.  The Agreement is hereby amended by adding the
following Section 12.2(c) immediately following Section 12.2(b) of the
Agreement:

 

(c)                                In
the event that any current Cubist supplier of Product purchases substantially
all of the stock or assets relating to that portion of ACSD’s business that is
related to the subject of this Agreement, all payments hereunder shall be
promptly returned to Cubist and Cubist shall have the right to modify any
Purchase Requirements set forth herein. Cubist shall also have the right to
pursue an alternative source of supply for the Product.

 

12.                                 Amendment to Exhibits B and C and Addition of New Exhibit F.  The
Agreement is hereby amended by replacing Exhibits B (In-Process Testing
Procedures and Specifications) and C (Product Release Test Methods and
Specifications) with Exhibits B-1 (CMC section of the Cubist U.S. NDA filing)
and C-1 (Master Product Specifications) attached hereto. To the extent that
there is any conflict between the specifications set forth in Exhibit C-1 and
those set forth in Exhibit B-1, the specifications set forth in Exhibit C-1
shall supersede in all respects.

 

13.                                 No Other Amendments.  Except
to the extent amended hereby, all of the definitions, terms, provisions and
conditions set forth in the Agreement are hereby ratified and confirmed and
shall remain in full force and effect. 
The terms and conditions herein and subject matter hereof shall at all
times be considered Confidential Information of Cubist, as defined in the
Agreement. The Agreement and this Amendment No. 2 shall be read and
construed together as a single agreement and the term “Agreement” shall be
deemed a reference to the Agreement as amended by this Amendment No. 2.  This Amendment No. 2 may be signed in any
number of counterparts, each of which shall be deemed to be an original and all
of which together shall constitute but one and the same instrument.  In making proof of this Amendment No. 2 it
shall not be necessary to produce or account for more than one such
counterpart.

 

6

 

IN WITNESS WHEREOF, this
Amendment No. 2 has been executed under seal by the parties hereto as of the
day and year first above written.

	
   

  	
  ACS DOBFAR SpA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Marco
  Feliciani

  	
   

  
	
   

  
	
   

  	
  Title: 
  President

  
	
   

  
	
   

  	
  Date: 02/20/03

  

 

 

	
   

  	
  CUBIST PHARMACEUTICALS,
  INC.

  
	
   

  
	
   

  	
  By:

  	
    /s/ Michael W. Bonney

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: 
  President/COO

  
	
   

  	
   

  
	
   

  	
  Date: 2/13/03

  

 

7

 

Exhibit B-1

 

CMC Section of US
NDA Filing

 

[*]

 

                CONFIDENTIAL
TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED WITH THE COMMISSION

 

8

 

Exhibit C-1

 

Specifications

 

[*]

 

                CONFIDENTIAL
TREATMENT REQUESTED: MATERIAL HAS BEEN OMITTED AND FILED WITH THE COMMISSION

 

9Exhibit 10.7

 

FIRST AMENDMENT TO LEASE

 

THIS FIRST AMENDMENT TO LEASE (this “Amendment”)
is made as of the 29th day of September, 2005 (the “Amendment Date”),
by and between THE REALTY ASSOCIATES FUND VI, L.P., a Delaware limited
partnership (“Landlord”) and CUBIST PHARMACEUTICALS, INC., a Delaware
corporation (“Tenant”).

 

RECITALS:

 

WHEREAS, by a lease (the “Lease”) dated as
of January, 2004, California State Teachers’ Retirement System (“Calsters”)
leased to Tenant approximately 15,475 rentable square feet of space (the “Original
Premises”), consisting of a portion of the second and fourth floors in the
building known as 45-55 Hayden Avenue, Lexington, Massachusetts (the “Building”);
and

 

WHEREAS, Landlord has succeeded to the
interests of Calsters as landlord under the Lease; and

 

WHEREAS, the term of the Lease is scheduled
to expire on July 31, 2009; and

 

WHEREAS, Landlord and Tenant now desire to
amend the Lease to, among other things, extend the term of the Lease for an
additional period, to expand the size of the Premises by adding thereto
approximately 31,453 rentable square feet of space on the fourth floor of the
Building (the “New Premises”), and to adjust the rent and certain provisions,
all on the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the
mutual covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, Landlord and Tenant hereby agree as
follows:

 

1.             Defined
Terms. All of the
foregoing recitals are true and correct. Unless otherwise defined herein, all
capitalized terms used in this Amendment shall have the meanings ascribed to
them in the Lease, the Lease shall be amended to incorporate any additional definitions
provided for in this Amendment, and all references in the Lease to the “Lease”
or “this Lease” or “herein” or “hereunder” or similar terms or to any section thereof
shall mean the Lease, or such section thereof, as amended by this Amendment.

 

2.             Additional
Terms and Definitions. (a) From
and after the Amendment Date, the following terms set forth in “Article 1
Reference Data” of the Lease are hereby amended to have the following meanings:

 

	
  TERM:

  	
   

  	
  Commencing on the Term Commencement Date and continuing until
  11:59 p.m., Boston time, on April 30, 2016 (subject to extension
  pursuant to Exhibit E hereto,

  

 

1

 

	
   

  	
  unless sooner terminated in accordance with the terms and conditions
  of this Lease.

  
	
   

  	
   

  
	
  LANDLORD:

  	
  THE REALTY ASSOCIATES FUND VI, L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
  LANDLORD’S AND MANAGING

  	
   

  
	
  AGENT’S ADDRESS:

  	
   

  
	
   

  	
  c/o TA Associates Realty

  
	
   

  	
  28 State Street

  
	
   

  	
  Boston, MA 02109

  
	
   

  	
   

  
	
  MANAGING AGENT

  	
  Spaulding & Slye

  
	
   

  	
  55 Hayden Avenue

  
	
   

  	
  Lexington, MA 02421

  
	
   

  	
   

  
	
  BUILDING:

  	
  The building known as 45-55 Hayden Avenue, Lexington, Massachusetts,
  consisting of both 45 Hayden Avenue and 55 Hayden Avenue

  
	
   

  	
   

  
	
  (b) From and after the Effective Date (as defined below), the
  following terms set forth in “Article 1 Reference Data” of the Lease are
  hereby amended to have the following meanings:

  
	
   

  	
   

  
	
  PREMISES:

  	
  The space in the Building, including the entire fourth floor and the
  space located on the second floor of the 55 Hayden Avenue portion of the
  Building, as shown on Exhibit A-l attached hereto and incorporated
  herein.

  
	
   

  	
   

  
	
  RENTABLE FLOOR AREA

  	
   

  
	
  OF THE PREMISES:

  	
  Approximately 46,928 square feet, of which 40,173 square feet
  consists of the entire fourth floor of the 55 Hayden Avenue portion of the
  Building and 6,755 square feet are located on the second floor of the
  Building.

  
	
   

  	
   

  
	
  ANNUAL RENT:

  	
  The Annual Rent shall be as set forth on Schedule I attached
  hereto and incorporated herein.

  
	
   

  	
   

  
	
  PERMITTED USES:

  	
  Office uses and computer lab uses and uses incidental thereto (provided
  that such computer lab use shall be in compliance with all laws and shall
  comply with the provisions of this Lease).

  

 

2

 

LANDLORD’S REPRESENTATIVE FOR THE PURPOSES
OF ARTICLE III

 

Harry Dagora

255 State Street

Boston, MA 02109

617-316-6556

 

3.             Operating
Expenses and Taxes. From
and after the Effective Date, Section 4.2 of the Lease shall be amended by
deleting the figure “2004” in the third line and substituting therefor the
figure “2006,” and by deleting the figure “2005” in the fifth line and substituting
therefor the figure “2007.”

 

4.             Effective
Date; Delivery and Condition.
(a) Tenant may commence occupancy of the New Premises on the Effective
Date. For the purposes of this Amendment, the “Effective Date” shall be the
first to occur of (i) May 1, 2006 and (ii) the Substantial Completion
Date (as defined below).

 

(b)           Tenant acknowledges that, except as explicitly provided in this Amendment
and in the Lease, it is leasing the New Premises in their current AS IS condition,
without any representation or warranty whatsoever on the part of Landlord. Tenant
currently occupies the Original Premises and is fully familiar with their
condition and that of the common areas of the Building, and Tenant acknowledges
that, to the best of Tenant’s knowledge (upon reasonable investigation and
inquiry), the Original Premises and the New Premises are in good condition and
suitable for Tenant’s uses. Without limiting the foregoing, Tenant agrees that
Landlord has no obligation to perform any work in or to either the Original
Premises or the New Premises to prepare the same for Tenant’s continued use and
occupancy.

 

(c)           Landlord acknowledges that Tenant desires to make certain alterations
or improvements in the New Premises to make the same more suitable for Tenant’s
occupancy. Such alterations or improvements may include tenant improvements to
the New Premises, installation of fixtures in the New Premises, and
architectural and engineering expenses in connection therewith (collectively,
the “Improvements”). All Improvements shall be undertaken by Tenant in strict
accordance with the applicable requirements of the Lease (including without
limitation Sections 3.3 and 3.4). The Improvements shall be deemed
substantially complete on that date (the “Substantial Completion Date”) on
which the Improvements have been completed except for items of work (and, if
applicable, adjustment of equipment and fixtures) which can be completed after
Tenant has taken occupancy of the New Premises, or any part thereof, without causing
undue interference with Tenant’s use of the New Premises or such part thereof. To
the extent that (i) such work is substantially completed in accordance
with such Lease requirements, and (ii) receipted invoices (and other
material required under the Lease such as, but not limited to, lien waivers
from any contractor or subcontractor performing the Improvements) showing the
actual cost thereof are presented to Landlord during the

 

3

 

Term of the Lease, and (iii) at the
time of any advance of funds, there then exists no default on the part of
Tenant under the Lease continuing beyond the expiration of applicable notice
and grace periods (an “Event of Default”) (nor any failure to pay any sum of
money due under the Lease of which Tenant has been given notice (and of which
Tenant has not notified Landlord in writing that Tenant disputes, which notice
shall set forth the basis for such dispute) and which, with the passage of time,
would constitute an Event of Default), Landlord shall reimburse Tenant, within
thirty (30) days after receipt of each such invoice (together with lien waivers
for all costs theretofore billed), for costs actually incurred by Tenant
(excluding the costs of furniture), as evidenced by such invoices, but in no
event shall Landlord be obligated to reimburse Tenant more than Nine Hundred
Eighty-eight Thousand Five Hundred Sixty-seven Dollars ($988,567.00), or $31.43
per square foot of Rentable Area in the New Premises (the “Improvements
Allowance”). Notwithstanding any of the preceding to the contrary, on or before
January 3, 2006, Landlord shall advance to Tenant Forty-Five Thousand
Dollars ($45,000.00) of the Improvements Allowance, even though Tenant may not
have completed work or provided the invoices or other material described above.
The amount so advanced shall be deducted from the next subsequent advances of
the Improvements Allowance requested by Tenant (at which time Tenant shall have
completed work and submitted requisite invoices and other materials showing
that such amount was in fact expended in accordance with this provision). To
the extent that Tenant has not requested reimbursement of any portion of the
Improvements Allowance prior to the expiration or earlier termination of the
Lease, Landlord shall have no further obligation to reimburse Tenant for any
costs incurred by Tenant. Tenant shall have access to the New Premises solely
for the purpose of performing the Improvements and for the installation of
furniture, equipment, and telephone/data wiring. Such access shall be subject
to all of the terms and conditions of the Lease, other than the payment of
Annual Rent or other usual occupancy charges. Tenant’s access shall be subject
to reasonable scheduling and other requirements of Landlord, and Tenant shall
deliver to Landlord certificates of liability, casualty and workmen’s
compensation insurance prior to having any such access.

 

5.             Electricity. The Lease currently allows Tenant to use
up to 6,755 rentable square feet of Premises area on the second floor of the
Building for computer laboratory uses. As provided below, Landlord is willing
to provide up to eighty (80) watts of electric service to that portion of the
Premises (whether or not on the second floor of the Building) used by Tenant
for computed laboratory space, up to a maximum of 6,755 rentable square feet.
Subject to compliance with the terms and conditions of the Lease (as amended
hereby, and including without limitation approval of plans and specifications),
Landlord further consents to an increase in size of the Tenant’s computer
laboratory over 6,755 rentable square feet. Tenant agrees that any work
necessary to furnish increased quantities of electric power to portions of the
Building other than the existing second floor computer laboratory space shall
be performed and paid for by Tenant. Therefore, from and after the Effective
Date, the second paragraph of Section 4.4 of the Lease shall be amended by
deleting the first sentence in its entirety and substituting the following
therefor:

 

“Tenant covenants and agrees that its use
of electric current (including without limitation the electric current
necessary for any supplemental

 

4

 

HVAC at the Premises) shall not exceed 6.0
watts per rentable square foot of floor area of the Premises; provided, that in any portion of the
Premises that Tenant is using as computer laboratory space, such use of
electric current shall not exceed 80.0 watts per rentable square foot of floor
area so used, and that Tenant’s total connected lighting load will in no event
exceed the maximum load from time to time permitted by applicable governmental
regulations. Landlord shall bear the cost of providing up to 80.0 watts of
electric current for up to 6,755 rentable square feet, and Tenant shall bear
any remaining costs of providing electric current to computer laboratory space.”

 

6.             Right
of First Offer. From and
after the Amendment Date, Exhibit G (Right of First Offer) to the
Lease is hereby deleted in its entirety and replaced by Exhibit G-l
attached hereto and incorporated herein.

 

7.             Options
to Extend. From and after
the Amendment Date, Exhibit E (Extension Option) to the Lease is hereby
amended by:

 

(a)   In the first and second sentences thereof, deleting “one (1) additional
period of five (5) years (“Extension Term”). The” and substituting such
language with “up to two (2) extended terms of five (5) years each
(each, an “Extension Term”). Each”;

 

(b)   In the second sentence thereof, deleting “initial Term of approximately
five (5) year and seven (7) month Term (the “Original Term”) and
substituting such language with “then current Term”;

 

(c)   In the first proviso contained in the second sentence thereof,
inserting “(an “Extension Notice”)” immediately after “Tenant’s exercise of
such option;”

 

(d)   Deleting the fourth sentence thereto, which begins “Prior to the
exercise by Tenant...”, in its entirety; and

 

(e)   In the fifth sentence thereto, deleting “, except that there shall be
no further extension terms”.

 

There shall be no further option or right
to extend the Term of the Lease beyond the second Extension Term described
above.

 

8.             Signage. Section 5.1.7 of the Lease is hereby
amended by adding the following at the end of such section: “In addition, so
long as the Tenant named herein or a Permitted Affiliate continues to actually
occupy the entire Premises, and this Lease remains in full force and effect and
no Event of Default on the part of Tenant exists, Landlord shall include Tenant’s
name in any interior or exterior directory sign(s) showing the names of other
tenants in the Building. The initial signage shall be furnished by Landlord at
its cost, but any change or replacement requested by Tenant shall be at Tenant’s
cost. If and

 

5

 

as long as the Tenant named herein (or a
successor entity, but not an assignee or sublessee) (i) actually occupies
at least 80,000 rentable square feet of space in the Building, and (ii) occupies
more than one-half (1/2) of the
rentable space in either the 45 Hayden Avenue portion or the 55 Hayden Avenue
portion of the Building, and so long as this Lease remains in full force and
effect and no Event of Default on the part of Tenant exists, upon the request
of Tenant, Landlord shall apply for, and use commercially reasonable efforts to
obtain, the necessary governmental permits and approvals to install an outside “monument”
sign on which Tenant’s name (and no others) shall be displayed. Upon receipt of
necessary permits and approvals, Landlord shall install (at its expense) such
monument sign in a location near the west entrance to the Building, and the
exact size, location and design shall be subject to Landlord’s reasonable
approval.”

 

9.             Parking. From and after the Effective Date, Section 10.19
of the Lease shall be amended by, in the first sentence thereto:

 

(a)           Replacing
“forty-seven (47)” with “one hundred and forty-one (141)”; and

 

(b)           Replacing
“15,475” with “46,928”.

 

10            Brokers. Tenant covenants, represents and warrants
to Landlord that Tenant has had no dealings or communications with any broker
or agent (other than Grubb & Ellis Company and Richards Barry Joyce &
Partners) in connection with this Amendment, and Tenant covenants and agrees to
pay, hold harmless and indemnify the Landlord from and against any and all
cost, expense (including reasonable attorneys’ fees) or liability for any
compensation, commission or charges to any broker or agent (other than the
foregoing named brokers) claiming through the Tenant with respect hereto.

 

11.           Exhibits. Effective from and after the Amendment
Date, Exhibit A-l attached hereto is hereby substituted for Exhibit A
to the Lease, and Exhibit G-l attached hereto is hereby substituted
for Exhibit G to the Lease. All references in the Lease to Exhibit A
shall be replaced by references to Exhibit A-l, and all
references in the Lease to Exhibit G shall be replace by references to Exhibit G-l.

 

12.           Successors. This Amendment shall be binding upon and inure
to the benefit of the parties hereto and their perspective successors and
assigns, subject to the provisions of the Lease regarding assignment or other
transfers of each party’s rights under the Lease.

 

13.           Authority. Each party represents and warrants to the
other that each person executing this Amendment on behalf of such party has the
authority to do so and that such execution has fully obligated and bound such
party to all terms and provisions of this Amendment.

 

14.           No
Further Amendment. It is
understood and agreed that all other conditions and terms contained in the
Lease not herein specifically amended shall remain unmodified

 

6

 

and in full force and effect, and the
Lease, as modified by this Amendment, is hereby ratified and confirmed.

 

15.           Tenant
Representations. As a
material inducement to Landlord entering into this Agreement, Tenant represents
and certifies to Landlord that as of the date hereof: (i) the Lease, as
modified hereby, contains the entire agreement between the parties hereto relating
to the Premises and that, except for that certain Amended and Restated Declaration
of Covenants and Easements between the Landlord’s predecessor in title with respect
to the Building and Tenant, as amended to date (the “Declaration”) there are no
other agreements between the parties relating to the Premises, the Building or
the Lease which are not contained or referred to herein or in the Lease, (ii) to
the best of Tenant’s knowledge, Landlord is not in default (continuing beyond
the expiration of any applicable notice or grace periods) in any respect in any
of the terms, covenants and conditions of the Lease; (iii) Tenant has no
existing setoffs, counterclaims or defenses against Landlord under the Lease; (iv) Tenant
has not assigned or pledged its leasehold interest under the Lease, or sublet
or licensed or granted any other occupancy rights with respect to any or all of
the Premises; (v) no consent or approval of any third party or parties is
required in order for Tenant to enter into and be bound by this Amendment; and (vi) Tenant
is not, and the performance by Tenant of its obligations hereunder shall not render
Tenant, insolvent within the meaning of the United States Bankruptcy Code, the Internal
Revenue Code or any other applicable law, code or regulation.

 

16.           Landlord
Representations. As a
material inducement to Tenant entering into this Agreement, Landlord represents
and certifies to Tenant that as of the date hereof: (i) the Lease, as
modified hereby, contains the entire agreement between the parties hereto relating
to the Premises and that, except for the Declaration, there are no other agreements
between the parties relating to the Premises, the Building or the Lease which are
not contained or referred to herein or in the Lease, (ii) to the best of
Landlord’s knowledge, there exists no Event of Default on the part of Tenant in
any respect in any of the terms, covenants and conditions of the Lease; and (iii) no
consent or approval of any third party or parties is required in order for
Landlord to enter into and be bound by this Amendment.

 

17.           Governing
Law. The Lease, this
Amendment and the rights and obligations of both parties thereunder and hereunder
shall be governed by the laws of The Commonwealth of Massachusetts.

 

18.           Counterparts. This Amendment may be executed in
counterparts, each of which shall be an original and all of which counterparts
taken together shall constitute one and the same instrument.

 

[Text Ends Here]

 

7

 

IN WITNESS WHEREOF, the undersigned have
hereunto se their hands and seals as of the date first above written.

 

	
   

  	
  LANDLORD

  
	
   

  	
   

  
	
   

  	
  The Realty Associates Fund VI, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Fund VI LLC,

  
	
   

  	
   

  	
  a Massachusetts limited liability company,

  
	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Advisors LLC, a Delaware

  
	
   

  	
   

  	
  limited liability company, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates Advisors Trust, a

  
	
   

  	
   

  	
   

  	
  Massachusetts business trust, sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Heather L. Hohenthal

  	
   

  
	
   

  	
   

  	
  Name:  Heather L. Hohenthal

  
	
   

  	
   

  	
  Title:

  	
  Heather L. Hohenthal

  	
   

  
	
   

  	
   

  	
   

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Fund VI Texas Corporation,

  
	
   

  	
   

  	
  a Texas corporation, general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Heather L. Hohenthal

  	
   

  
	
   

  	
   

  	
  Name:  Heather L. Hohenthal

  
	
   

  	
   

  	
  Title:

  	
  Heather L. Hohenthal

  	
   

  
	
   

  	
   

  	
   

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CUBIST PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David W. J. McGirr

  	
   

  
	
   

  	
  Name:

  	
  David W. J. McGirr

  
	
   

  	
  Title:

  	
  SVP CFO

  
										

 

8

 

Exhibit A-1

 

 

	
  FOURTH FLOOR

  	
   

  
	
  55 Hayden Avenue

  	
  EXHIBIT A-1

  
	
  Waltham, MA

  	
  PREMISES

  

 

9

 

 

	
  SECOND FLOOR

  	
   

  
	
  55 Hayden Avenue

  	
  EXHIBIT A-1

  
	
  Waltham, MA

  	
  PREMISES

  

 

10

 

EXHIBIT G-l

 

RIGHT OF FIRST OFFER

 

Provided the original Tenant named herein
or a Permitted Affiliate is itself occupying the entire Premises at the time of
giving its notice to accept its offer and at the time of delivery of any
applicable First Offer Space (as herein defined) to Tenant, Tenant shall have a
one time right of first offer for each and every space in the Building other
than the Premises which may now or hereafter may become vacant and available
(each such space, a “First Offer Space”).
This one time right and option
on each First Offer Space to so expand the Premises shall be personal to the
Tenant executing this Lease and such right and option may not be assigned or
transferred to any other party or entity. Landlord, by written notice (“First Offer Notice”), shall advise Tenant of the availability of
any of the First Offer Space. Landlord may deliver the First Offer Notice at
any time that Landlord determines the expected availability of any portion of
the First Offer Space, provided that no First Offer
Notice shall be delivered earlier than twelve (12) months prior to the expected
date of availability of the First Offer Space.

 

Landlord’s First Offer Notice shall advise
Tenant of the rental rate, required security deposit and other terms upon which
it is willing to lease the noticed First Offer Space on the open market, which
terms shall be commercially reasonable. If Tenant does not accept Landlord’s
offer for such First Offer Space as required hereunder, then for the period of
twelve (12) months after the date of the First Offer Notice, Landlord may not
enter into a lease for such First Offer Space pursuant to which there is a
reduction of monetary terms of more than ten percent (10%) from the annual rent
set forth in the First Offer Notice without again having to offer such First
Offer Space to Tenant. In the event that during such twelve (12) month period,
Landlord receives a third party offer for such First Offer Space pursuant to
which there is a reduction of monetary terms of more than ten percent (10%)
from the annual rent set forth in the First Offer Notice, then Landlord shall
provide Tenant a notice of such terms (a “Second Offer Notice”) and Tenant shall have ten (10) days after receipt of such Second
Offer Notice within which to deliver acceptance of such offer. If Tenant fails
to accept such new offer as set forth in the Second Offer Notice within such 10-day
period, Tenant shall have waived such offer set forth in the Second Offer
Notice, time being of the essence, and Landlord shall be free to rent the
applicable First Offer Space on the terms set forth in such Second Offer Notice
or on any greater monetary terms than the terms set forth in said Second Offer
Notice. In any event, after such twelve (12) month period, Landlord shall be free
to lease the applicable First Offer Space to any party on any terms. Landlord,
at its election, may increase the Security Deposit hereunder upon Tenant’s
acceptance of any First Offer Space, provided
that such increase is reasonably related to the rent attributable to
such First Offer Space.

 

Tenant shall have fifteen (15) business
days after receipt of any First Offer Notice within which to deliver written
acceptance of such offer to Landlord. If an event of material default, or event
which with the giving of notice or the passage of time, or both, would
constitute a material default, exists at the time Tenant accepts such offer or
at the time of delivery of any portion of the First Offer Space to Tenant,
Tenant’s exercise of such offer shall, at the option of Landlord, be null and
void and of no further force and effect. In the event Tenant exercises its
right to any First Offer Space so offered by Landlord, Landlord and Tenant
hereby agree to amend those provisions of this Lease which are affected by the
exercise of such right. If Tenant shall fail to give timely written notice of
the acceptance of any offer for any First Offer Space, Tenant shall

 

11

 

have waived such offer for the remainder of the Term for such First
Offer Space only, time being of the essence of the foregoing provisions. After
tenant takes possession of any portion of the First Offer Space, the term “Premises,”
as used in this Lease, shall be deemed to refer to and include the First Offer
Space so accepted. Tenant’s rights hereunder are subordinate to the existing
rights, in place as of the Amendment Date, with existing tenants in the
Building, which are set forth below. Notwithstanding the foregoing, Tenant
acknowledges that Landlord is currently negotiating with First Consulting Group
for an extension of its existing lease of 3,089 square feet on the 2nd
floor of the 45 Hayden Avenue portion of the Building (the “FCG Space”) (and
perhaps for an option to further extend the term), and Tenant agrees that its
rights under this Exhibit G-l shall be subordinate to any such extension
(and option to further extend) of the First Consulting Group lease of the FCG
Space only.

 

12

 

RIGHTS OF EXISTING BUILDING TENANTS

 

	
  Celerant

  	
  Option to Extend

  
	
  8,017
  sf – 2nd Fl (45)

  Expiration 8/31/07

  	
  One
  5 year term (thru August 31, 2012); 12 mos. notice prior to expiration
  of current term required

  
	
   

  	
   

  
	
  Summit Mortgage

  	
  Option to Extend

  
	
  2,805
  sf – 2nd Fl (45)

  	
  One
  5 year term (thru February 28, 2014); 9 mos. notice prior to expiration
  of current term required

  
	
  Expiration
  2/28/09

  	
   

  
	
   

  	
   

  
	
  Comet Learning

  	
  Option to Extend

  
	
  6,150
  sf – 2nd Fl (55)

  	
  One
  1 year term (thru November 30, 2007); 9 mos. notice prior to expiration
  of current term required

  
	
  Expiration
  11/30/06

  	
   

  
	
   

  	
   

  
	
  Motorola

  	
  Option to Extend

  
	
  25,405
  sf – 2nd Fl (45)

  30,019 sf – 3rd Fl (55)

  Expiration
  4/30/07

  	
  One
  3 year term (thru April 30, 2010); 9 mos. notice prior to expiration of
  current term required

  
	
   

  	
   

  
	
  Goodrich, LLC

  	
  Option to Extend

  
	
  10,495
  sf – 3rd Fl (55)

  Expiration 11/30/09

  	
  One
  7 year term (thru November 30, 2016); 12 mos. notice prior to expiration
  of current term required

  
	
   

  	
   

  
	
  Aon Consulting

  	
  Option to Extend

  
	
  5,528
  sf – 2nd Fl (45)

  Expiration 7/31/06

  	
  One
  5 year term (thru July 31, 2011); 12 mos. notice prior to expiration of
  current term required

  
	
   

  	
   

  
	
  Spaulding and Slye

  	
  Option to Extend

  
	
  14,092
  sf – 2nd Fl (55)

  Expiration 3/31/15

  	
  Two
  extension of 5 year terms (thru March 31, 2020 and March 31, 2025,
  respectively); each on 9 mos. notice prior to expiration of current term
  required

  
	
   

  	
   

  
	
  Spaulding and Slye

  	
  First Right to Lease

  
	
   

  	
  During
  the term of Spaulding and Slye’s lease to the 14,092 sf on the 2nd
  floor of the 55 Hayden Avenue portion of the Building, Spaulding and Slye
  holds a first right to lease the following spaces in the Building:

   

  •      8,017 sf – 2nd Fl (45) (Celerant
  space)

  •      2,805 sf – 2nd Fl (45) (Summit
  Mortgage space)

  •      6,150 sf – 2nd Fl (55) (Comet
  Learning space)

  •      5,528 sf – 2nd Fl (45) (Aon
  Consulting space)

  •      3,089 sf – 2nd Fl (45) (FCG
  space)

   

  Spaulding and Slye must respond to the Landlord’s notice of any such
  space becoming available within 14 days of such notice.  

  

 

13

 

Schedule I

 

SCHEDULE I

ANNUAL RENT

 

(a)           For the period from the Effective Date
through July 31, 2009:

 

The sum of (i) as to the Original Premises:

 

	
  RENTAL PERIOD

  	
   

  	
  TOTAL ANNUAL RENT

  	
   

  	
  MONTHLY PAYMENT

  	
   

  	
  RENTAL RATE/SF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5/1/06 – 1/31/07

  	
   

  	
  $

  	
  371,400.00

  	
   

  	
  $

  	
  30,950.00

  	
   

  	
  $

  	
  24.00

  	
   

  
	
  2/1/07 – 1/31/08

  	
   

  	
  $

  	
  386,875.00

  	
   

  	
  $

  	
  32,238.58

  	
   

  	
  $

  	
  25.00

  	
   

  
	
  2/1/08 – 7/31/09

  	
   

  	
  $

  	
  402,350.00

  	
   

  	
  $

  	
  33,529.17

  	
   

  	
  $

  	
  26.00

  	
   

  

 

plus (ii) as to the New Premises:

 

	
  RENTAL PERIOD

  	
   

  	
  TOTAL ANNUAL RENT

  	
   

  	
  MONTHLY PAYMENT

  	
   

  	
  RENTAL RATE/SF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5/1/06 – 4/30/07

  	
   

  	
  $

  	
  723,419.00

  	
   

  	
  $

  	
  60,284.92

  	
   

  	
  $

  	
  23.00

  	
   

  
	
  5/1/07 – 4/30/08

  	
   

  	
  $

  	
  739,145.50

  	
   

  	
  $

  	
  61,595.46

  	
   

  	
  $

  	
  23.50

  	
   

  
	
  5/1/08 – 4/30/09

  	
   

  	
  $

  	
  754,872.00

  	
   

  	
  $

  	
  62,906.00

  	
   

  	
  $

  	
  24.00

  	
   

  
	
  5/1/09 – 7/31/09

  	
   

  	
  $

  	
  794,188.25

  	
   

  	
  $

  	
  66,182.35

  	
   

  	
  $

  	
  25.25

  	
   

  

 

(b)           For the period after July 31, 2009:

 

	
  RENTAL PERIOD

  	
   

  	
  TOTAL ANNUAL RENT

  	
   

  	
  MONTHLY PAYMENT

  	
   

  	
  RENTAL RATE/SF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8/1/09 – 4/30/10

  	
   

  	
  $

  	
  1,184,932.00

  	
   

  	
  $

  	
  98,744.33

  	
   

  	
  $

  	
  25.25

  	
   

  
	
  5/1/10 – 4/30/11

  	
   

  	
  $

  	
  1,208,396.00

  	
   

  	
  $

  	
  100,699.67

  	
   

  	
  $

  	
  25.75

  	
   

  
	
  5/1/11 – 4/30/12

  	
   

  	
  $

  	
  1,231,860.00

  	
   

  	
  $

  	
  102,655.00

  	
   

  	
  $

  	
  26.25

  	
   

  
	
  5/1/12 – 4/30/13

  	
   

  	
  $

  	
  1,267,056.00

  	
   

  	
  $

  	
  105,588.00

  	
   

  	
  $

  	
  27.00

  	
   

  
	
  5/1/13 – 4/30/14

  	
   

  	
  $

  	
  1,325,716.00

  	
   

  	
  $

  	
  110,476.33

  	
   

  	
  $

  	
  28.25

  	
   

  
	
  5/1/14 – 4/30/15

  	
   

  	
  $

  	
  1,384,376.00

  	
   

  	
  $

  	
  115,364.67

  	
   

  	
  $

  	
  29.50

  	
   

  
	
  5/1/15 – 4/30/16

  	
   

  	
  $

  	
  1,419,572.00

  	
   

  	
  $

  	
  118,297.67

  	
   

  	
  $

  	
  30.25

  	
   

  

 

14

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