Document:

Exhibit 10.1

 

SEVENTH AMENDMENT TO LEASE

 

This
SEVENTH AMENDMENT TO LEASE (this “Amendment”)
is made as of the 22nd day of
June, 2010, (the “Effective Date”) by
and between MASSACHUSETTS DEVELOPMENT FINANCE
AGENCY, a body politic and corporate and a public instrumentality of
the Commonwealth of Massachusetts pursuant to Massachusetts General Laws,
Chapter 23G, with an address of 160 Federal Street, Boston, Massachusetts 02110
(“Landlord”) and CELLDEX THERAPEUTICS, INC. (formerly
AVANT Immunotherapeutics, Inc.), a Delaware corporation, with an address
of 119 Fourth Avenue, Needham, Massachusetts (“Tenant”).

 

RECITALS

 

WHEREAS,
Landlord and Tenant entered into a certain Lease dated effective December 22,
2003, as amended by that certain First Amendment to Lease dated as of March 17,
2005 (the “First Amendment”), that
certain Second Amendment to Lease dated as of November 4, 2005 (the “Second Amendment”), that certain Third
Amendment To Lease dated as of December 20, 2006 (the “Third Amendment”), that certain Fourth
Amendment to Lease dated as of July 18, 2008 (the “Fourth Amendment”), that certain Fifth
Amendment to Lease dated as of October 3, 2008 (the “Fifth Amendment”) and by that certain
Sixth Amendment to Lease dated as of August 20, 2009 (the “Sixth Amendment”) of certain premises
consisting of approximately 23,413 rentable square feet of space (the “Premises”) in the building (the “Building”) located at 151 Martine Street,
Fall River, Massachusetts (the “Property”) in
the South Coast Research & Technology Park (the “Park”);

 

1

 

WHEREAS, the Premises is
comprised of: (i) the original premises demised by the Lease, as amended
through the Third Amendment, being 11,756 rentable square feet on the second (2nd) floor of the Building, (ii) the Additional Space (as defined in the
First Amendment) demised by the First Amendment, being 71 rentable square feet
on the first (1st) floor of the
Building, (iii) the Expansion Premises (as defined in the Second
Amendment), being 2,487 rentable square feet on the second (2nd) floor of the Building; (iv) the Second Expansion Premises (as
defined in the Third Amendment), being 1,853 rentable square feet on the second
(2nd) floor of the Building; (v) the
Substitute Third Expansion Premises (as defined in the Fifth Amendment), being
4,864 rentable square feet of space on the second floor of the Building
(referred to therein as the “Third Expansion Premises”); and (vi) the
Fourth Expansion Premises (as defined in the Sixth Amendment), being 2,382
rentable square feet on the second (2nd)
floor of the Building.

 

WHEREAS, Landlord and Tenant
have agreed to enter into this Seventh Amendment to Lease to renew the term of
the Lease and to amended certain additional provisions to the Lease.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby mutually
acknowledged, Landlord and Tenant agree as follows:

 

6.             Capitalized Terms. Unless otherwise
defined herein, all capitalized terms used in this Amendment shall have the
meanings ascribed to them in the Lease, 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, after the Effective Date, mean the Lease, or such section thereof,
as amended by this Amendment.

 

2

 

2.             Premises Square Footage.
Section 1.1 of this Lease is hereby amended by amending the term “Premises
Square Footage” as follows:

 

Premises
Square Footage                                        23,413
rentable square feet

 

3.             Term Commencement Date.
Section 1.1 of this Lease is hereby amended by providing that as of January 1,
2011, the term “Original Term Commencement Date” shall be deleted and replaced
with the term the “Term Commencement Date” throughout this Lease.

 

4.             Section 2.2.            Term. Section 2.2 of the Lease shall be amended as of January 1, 2011
to read as follows:

 

Section 2.2             Term. TO HAVE AND TO HOLD for a
term (the “Term”) beginning on the Term Commencement Date which shall be January 1,
2011 and expiring on December 31, 2017 (the “Term Expiration Date”),
unless earlier terminated as provided for in Section 2.4.

 

5.             Section 2.3             Renewal Term. Section 2.3 of the Lease is hereby deleted in its entirety and
replaced with the following provision.

 

Section 2.3.            Option to Extend Term for Extension Terms.
Tenant shall have two (2) separate options to extend the Lease Term for an
additional five (5) year period (i.e., for a total, if both such options
are exercised as provided herein, of ten (10) successive years beyond the
Term) beyond the Term or the first Extension Term, as the case may be (each
five year period being referred to herein as an “Extension Term”), provided
(i) Tenant shall give notice to Landlord of its exercise of such option
not less than twelve (12) months prior to the expiration of the Term or the
first Extension Term, as the case may be, (ii) no default beyond any
applicable grace period in the obligations of Tenant under this Lease shall
exist at the time each such notice is given, and (iii) at the time each
such option is exercised, the original Tenant hereunder, a permitted assignee
of the Tenant under Section 10.14 or any “Approved Entity” (as such term
is defined in Section 10.14) shall be in occupancy of at least 50% of the
entire Premises then demised hereunder. All of the terms and provisions of this
Lease, as amended, shall be applicable to each Extension Term except that
Tenant shall have no option to extend the Lease Term beyond the second
Extension Term.

 

3

 

 

6.             Premises and Term. Section 2 of
the Lease is hereby amended by adding the following provision:

 

Section 2.4. Early
Termination Option. Tenant shall have one option (“Early Termination Option”)
to terminate the Lease as of December 31, 2015 (the “Early Termination
Date”) upon prior written notice to Landlord provided no later than December 31,
2014 (the “Early Termination Notice”) and upon payment of a termination payment
of Twenty-six Thousand Six Hundred Seventy-six and 57/100 Dollars ($26,676.57)
(the “Termination Payment”), which payment shall be delivered with the Early
Termination Notice. In the event that Tenant shall fail to pay the Termination
Payment with its Early Termination Notice, the Early Termination Option shall
be null and void and the Tenant’s obligations under this Lease shall continue
for the remainder of the Term.

 

7.             Annual Fixed Rental Rate.
Section 1.1 of the Lease is amended by deleting the provisions regarding
the “Annual Fixed Rental Rate” and inserting the following language:

 

	
  Annual Fixed Rental Rate:

  	
   

  	
  As of January 1, 2011 and
  through December 31, 2012: $379,307.50 per annum.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) As of January 1, 2013
  and annually thereafter, (the “Adjustment Date”) the Annual Fixed Rental Rate
  shall be calculated for the immediately following twelve (12) month period
  that begins with the applicable Adjustment Date as follows: An annual amount
  equal to the product of the Annual Fixed Rental Rate payable for the then
  preceding twelve (12) month period multiplied by the Increase Factor.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For purposes of this
  Lease, the “Increase Factor” shall mean a fraction, the numerator of which
  shall be the “Index” (defined below) as issued for the month of November that
  immediately precedes the applicable Adjustment Date and the denominator of
  which shall be the Index as issued for the month of November in the year
  immediately prior to the month of November that immediately precedes the
  applicable Adjustment Date. Notwithstanding the foregoing, if the numerator is
  less than the denominator, then the Increase Factor shall be one (1).

  

 

4

 

	
   

  	
   

  	
  Index
  shall mean the Consumer Price Index for Urban Wage Earners and Clerical
  Workers, Boston – Brockton – Nashua, MA – NH – ME – CT. All Items –
  Series A (1982 – 84 = 100) issued by the Bureau of Labor Statistics of
  the United States Department of Labor. In the event that the Index shall
  hereafter be converted to a different standard of reference base or otherwise
  revised, the determination of the Increase Factor shall be made with the use
  of such conversion factor, formula, or table for converting the Index as may
  be published by the Bureau of Labor Statistics or, if said Bureau shall not
  publish the same, then with the use of such conversion factor, formula, or
  table as may be published by Prentice Hall, Inc., or failing such
  publication, by any other nationally recognized publisher of similar
  statistical information. In the event that the Index shall cease to be
  published, then, for the purposes of determining the Increase Factor, there
  shall be substituted for the Index such other Index as Landlord and Tenant
  shall agree upon, and, if they are unable to agree within ninety (90) days
  after the Index ceases to be published, such matter shall be determined in
  Boston by arbitration in accordance with the Rules of the American
  Arbitration Association.

  

 

8.             Tenant Improvement Allowance.
Section 4 of the Lease is hereby amended by adding the following new
provision:

 

Section 4.4.            Tenant Improvement Allowance.
Landlord shall provide Tenant with an allowance, subject to the provisions of
Section 10.4 below, up to the aggregate amount of $93,368 (“Tenant
Improvement Allowance”) which monies shall be disbursed to Tenant not more than
once monthly for its costs of non-structural improvements to the Premises
including carpet and paint, but excluding furniture and equipment. A maximum of
fifteen percent (15%) of the Tenant Improvements Allowance may be applied to
soft costs. The applicable portion of the Tenant Improvement Allowance shall be
disbursed to Tenant thirty (30) days after Tenant’s presentation to Landlord of
(i) detailed invoices supporting improvement costs which invoices shall
reasonably itemize such costs on a line item basis, (ii) evidence of such
improvement, (iii) lien waivers from contractors installing such
improvements and (iv) other supporting documentation reasonably requested
by the Landlord. All disbursement requests must be made prior to

 

5

 

December 31, 2011. The
unused portions of the Tenant Improvement Allowance may not be used for any
other purpose, including the payment of Rent.

 

9.             Section 10.4           Tenant
Work. The first paragraph of Section 10.4 is
hereby amended by deleting such paragraph in its entirety and inserting the
following language:

 

Section 10.4.          Tenant’s Work. Except as otherwise
described in this Section 10.4, Tenant shall not make any installations,
alterations, additions or improvements in or to the Premises, including,
without limitation, any apertures in the walls, partitions, ceilings or floors,
without on each occasion obtaining the prior written consent of Landlord
(i) which consent, as to installations, alterations, additions or
improvements that do not affect the Building systems or the structure of the
Premises or Building, shall not be unreasonably withheld or delayed and
(ii) which consent shall not be necessary as to cosmetic improvements
(i.e., painting and carpeting) that does not cost more than $150,000 in any one
instance. Any such work so approved by Landlord shall be performed only in
accordance with plans and specifications (except for cosmetic improvements) and
a construction schedule therefor reasonably approved in advance by Landlord.
Tenant shall procure, at Tenant’s sole expense, all necessary permits and
licenses before undertaking any work on the Premises and shall perform all such
work in a good and workmanlike manner employing materials of good quality and
so as to conform with all applicable zoning, building, fire, health and other
codes, regulations, ordinances and laws and with all applicable insurance
requirements. Prior to commencing any work at the Premises, Tenant shall
provide Landlord with a copy of the executed contract with the general
contractor for such work. If requested by Landlord, Tenant shall furnish to
Landlord prior to the commencement of any such work a bond or other security
acceptable to Landlord assuring that any work by Tenant will be completed in
accordance with the approved plans and specifications. Tenant shall keep the
Premises at all times free of liens for labor and materials. Tenant shall
employ for such work only contractors approved by Landlord, which approval
shall not be unreasonably withheld, and shall require all contractors employed
by Tenant to carry worker’s compensation insurance in accordance with statutory
requirements and commercial public liability insurance covering such
contractors on or about the Premises in amounts that at least equal the limit
of $2,000,000 and to submit certificates evidencing such coverage to Landlord
prior to the commencement of such work. Tenant shall save Landlord harmless and
indemnified from all injury, loss, claims or damage to any person or property
occasioned by or growing out of such work. Subject to compliance with the terms
of Section 10.6 of this Lease, Landlord may inspect the work of Tenant at
reasonable times and give notice of observed defects.

 

6

 

10.           Section 10.14  Assignment and
Subletting. Section 10.14 of the
Lease is hereby amended by deleting the fifth paragraph in its entirety and
replacing it with the following provision:

 

If for any Transfer, Tenant
shall receive rent or other consideration, either initially or over the term of
the assignment of sublease, in excess of rent (or in the case of the sublease
of part, in excess of such rent allocable to the part) after appropriate
adjustments to assure that all other payments called for hereunder are taken into
account and after deducting Tenant’s reasonable legal, brokerage and leasehold
improvement cots, all amortized ratably over the tern of the sublease or
assignment, incurred for such sublease or assignment, Tenant shall pay to
Landlord, as Additional Rent, fifty percent (50%)  of such
excess of such payment of rent or other consideration received by Tenant,
promptly after its receipt.

 

11.           Broker. Section 1.1 of the
Lease is hereby amended by amending the definition of Broker therein by
deleting “Whelan Associates, LLC” and replacing with “Jones Lang LaSalle”.

 

12.           Section 14.7  Brokerage. Section 14.7 of the Lease is hereby amended by adding the following
second paragraph:

 

The total commission due to
the Broker for the extension of the Term shall be One Hundred Six Thousand Two
Hundred Six and 00/100 Dollars ($106,206) and shall be payable as follows:

 

(i)              Upon
execution of this Amendment by both parties, Landlord shall pay to Broker
Seventy-five Thousand, Eight Hundred Sixty-one and 50/100 Dollars ($75,861.50)
which is an amount equal to four percent (4%) of the rent to be paid for the
first 5 years of the Extension Term.

 

(ii)             On
the first day of the sixth lease year of the Extension Term, Landlord shall pay
to Broker Thirty Thousand, Three Hundred Forty-four and 50/100 Dollars
($30,344.50); provided that Tenant has not exercised its termination option
under Section 2.4 of the Lease as amended hereby.

 

13.           Right of First Offer. Section 3 of
the Lease is hereby amended by adding the following provision.

 

Section 3.3.            Right of First Offer. During the Term and
the first Extension Term, Tenant shall have a right of first offer on any space
that becomes available in the Building subject to existing leasing agreements
(the “First Offer Space”).

 

7

 

“Available” space includes,
without limitation, space that Landlord intends, in its sole discretion, to
recapture from an existing tenant (whether by an earlier termination of an
existing lease or pursuant to applicable sublease recapture provisions
therein). Before entering into a lease for the First Offer Space with a third
party (other than any existing tenant or occupant of such space), Landlord
shall notify Tenant of the economic terms of the effective rent and any other
material terms or conditions (such as the actual recapture of space from an
existing tenant, if applicable, as set forth above) on which Landlord intends
to lease the space (“Landlord’s Notice”). Within ten (10) business days
after receipt of the Landlord’s Notice, Tenant may, by written notice delivered
to Landlord (i) reject Landlord’s Notice, or (ii) reject Landlord’s
Notice but offer to lease such space from Landlord on different economic terms,
or (iii) accept the terms set forth in Landlord’s Notice (the failure by
Tenant timely to respond as aforesaid being deemed Tenant’s rejection of
Landlord’s Notice). Any notice given under clause (ii) or (iii) shall
confirm that Tenant will use the First Offer Space for its own use.

 

If
Landlord’s Notice is rejected under clause (i) above (or deemed rejected
by Tenant’s failure to timely respond), then Landlord may enter into any lease
for such space within a one-year period after such rejection or deemed
rejection, unless Tenant makes a timely counteroffer under the next grammatical
paragraph.

 

If
Tenant timely offers to lease the space on alternative terms as set forth in
clause (ii) above, then Landlord shall, by written notice delivered within
thirty (30) days of receipt thereof, either accept or decline such offer (the
failure to so respond being deemed Landlord’s election to decline Tenant’s
offer). If such offer under clause (ii) is declined (or deemed declined),
then, for a period of one year after Landlord’s receipt of Tenant’s offer,
Landlord may enter into any lease for such space at an effective rent (taking
into account any tenant improvement allowance, free rent, or other tenant
concessions) greater than that set forth in Tenant’s offer. If, during such one
year period, Landlord desires to enter into a third-party lease at an effective
rent less than or equal to the effective rent set forth in Tenant’s offer,
Landlord shall deliver to Tenant a new Landlord’s Notice. If Landlord does not
enter into any lease within such one-year period, Landlord shall re-commence
the process under this Section before entering into a lease for the space.

 

If
Tenant timely accepts the terms in Landlord’s Notice under clause
(iii) above or if Landlord timely accepts an offer by Tenant under clause
(ii) above, the space shall, subject to the following paragraph below and
without further action by the parties, be leased by Tenant on the accepted
terms and otherwise on all of the terms of the Lease in effect immediately
prior to such expansion, provided that, at the request of either party,
Landlord and Tenant shall promptly execute and deliver an agreement confirming
such expansion of the Premises and the estimated date the Premises are to be
expanded pursuant to this Section with a

 

8

 

provision for establishing
the effective date of such expansion based on the actual delivery.

 

Notwithstanding
any provision of this Section to the contrary, Tenant’s Expansion Option
shall be void, at Landlord’s election, if (i) Tenant is in material
default under the Lease, after any applicable notice and cure periods have
expired, at the time prior to the time Tenant makes any election with respect
to the First Offer Space under this Section, or (ii) except for Permitted
Transfers, Tenant has assigned the Lease or subleased more than twenty percent
(20%) of Premises Square Footage. Nothing in this Section shall be
construed to grant to Tenant any rights or interest in any particular space in
the Building, and any claims by Tenant alleging a failure of the Landlord to
comply herewith shall be limited to claims for monetary damages. Tenant may not
assert any rights in any space nor file any lis pendens or similar notice with
respect thereto. To be effective, the exercise of Tenant’s rights under this
Section (and notice thereof) shall be unconditional; if Tenant purports to
condition the exercise of such rights or to vary its terms in any manner, then
the rights granted shall be void and the purported exercise shall be
ineffective.

 

14.           Ratification. Except as expressly
modified by this Amendment, the Lease shall remain in full force and effect,
and as further modified by this Amendment, is expressly ratified and confirmed
by the parties hereto. This Amendment shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns, subject to
the provisions of the Lease regarding assignment and subletting.

 

15.           Governing Law; Interpretation; and Partial Invalidity. This Amendment shall be governed and construed in accordance with the
laws of the Commonwealth of Massachusetts. If any term of this Amendment, or
the application thereof to any person or circumstances, shall to any extent be
invalid or unenforceable, the remainder of this Amendment, or the application of
such term to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term of this
Amendment shall be valid and enforceable to the fullest extent permitted by
law. The titles for the paragraphs are for convenience only and not to be
considered in construing this Amendment. This Amendment contains all of the
agreements of the parties with respect to the subject matter hereof, and
supersedes all prior

 

9

 

dealings between them
with respect to such subject matter. No delay or omission on the part of either
party to this Amendment in requiring performance by the other party or
exercising any right hereunder shall operate as a waiver of any provision
hereof or any rights hereunder, and no waiver, omission or delay in requiring
performance or exercising any right hereunder on any one occasion shall be
construed as a bar to or waiver of such performance or right on any future
occasion.

 

16.           Counterparts and Authority.
This Amendment may be executed in multiple counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same
document. Landlord and Tenant each warrant to the other that the person or persons
executing this Amendment on its behalf has or have authority to do so and that
such execution has fully obligated and bound such party to all terms and
provisions of this Amendment.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. THE

NEXT PAGE IS THE SIGNATURE PAGE.]

 

10

 

IN
WITNESS WHEREOF, the undersigned executed this Amendment under seal as of the
date and year first written above.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  MASSACHUSETTS
  DEVELOPMENT FINANCE AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  Richard Henderson

  
	
   

  	
   

  	
  Name: Richard Henderson

  
	
   

  	
   

  	
  Title:
  Executive Vice President, Real Estate

  
	
   

  	
   

  
	
   

  	
     APPROVED
  AS TO FORM

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
  Agency
  Counsel

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CELLDEX
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  Anthony S. Marucci

  
	
   

  	
   

  	
  Name:

  	
  Anthony
  S. Marucci

  
	
   

  	
   

  	
  Title:

  	
  President
  and CEO

  
					

 

11Exhibit 10.1

 

 

May 3, 2010

 

William
M. Lowe, Jr.

7505
Forest Creek Ridge Ct.

Summerfield,  NC 
27358

 

Re:  Amendment No. 1 to  Change in Control Severance Compensation Agreement

 

Dear
Mr. Lowe:

 

You
have previously entered into a Change in Control Severance Compensation
Agreement dated July 28, 2008 (the “Agreement”) with KEMET Corporation
(the “Company”) in order to provide you with certain compensation and other
benefits in the event that your employment with the Company is terminated as a
result of a Change in Control of the Company. 
You and the Company now wish to amend the Agreement as follows:

 

1.             Benefits.  (A) Section 4(A)(i) is hereby
deleted and replaced in its entirety as follows:

 

“(i)     An amount that is
twenty-four (24) times the sum of (x) your monthly base salary at the rate
in effect at the time a Notice of Termination is given and (y) the monthly
amount of your annual target incentive bonus, which shall be determined by
dividing the annual target incentive bonus by 12 for the year in which the
Change of Control occurs.”

 

(B)  Section 4(A)(ii) is hereby amended to replace the
phrase “thirty (30)” with “twenty-four (24)” in the first sentence.

 

(C)  Section 4(D) is hereby deleted and replaced in its
entirety as follows:

 

“(D) 
Code Section 409A Compliance.

 

(i) 
The intent of the parties is that payments and benefits under this Agreement
comply with Internal Revenue Code Section 409A and the regulations and
guidance promulgated thereunder (collectively “Code Section 409A”)
and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to be in compliance therewith. 
To the extent that any provision hereof is modified in order to comply
with Code Section 409A, such modification shall be made in good faith and
shall, to the maximum extent reasonably possible, maintain the original intent
and economic benefit to you and the Company of the applicable provision without
violating the provisions of Code Section 409A.  In no event whatsoever shall the Company be
liable for any additional tax, interest or penalty that may be imposed on you
by Code Section 409A or damages for failing to comply with Code Section 409A.

 

P.O.
Box 5928, Greenville, South Carolina 29606 U.S.A.

Tel:
864.963.6300   Fax: 864.963.6521

 

 

(ii) 
A termination of employment shall not be deemed to have occurred for purposes
of any provision of this Agreement providing for the payment of any amounts or
benefits upon or following a termination of employment unless such termination
is also a “separation from service” within the meaning of Code Section 409A
and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.”  Notwithstanding anything to the contrary in this
Agreement, if you are deemed on the date of termination to be a “specified
employee” within the meaning of that term under Code Section 409A(a)(2)(B),
then with regard to any payment or the provision of any benefit that is
considered deferred compensation under Code Section 409A payable on
account of a “separation from service,” such payment or benefit shall not be
made or provided until the date which is the earlier of (I) the expiration
of the six (6)-month period measured from the date of your “separation from
service,” and (II) the date of your death, to the extent required under
Code Section 409A.  Upon the
expiration of the foregoing delay period, all payments and benefits delayed
pursuant to this paragraph (whether they would have otherwise been payable in a
single sum or in installments in the absence of such delay) shall be paid or
reimbursed to you in a lump sum, and all remaining payments and benefits due
under this Agreement shall be paid or provided in accordance with the normal
payment dates specified for them herein. 
For purposes of Code Section 409A, your right to receive
installment payments pursuant to this Agreement shall be treated as a right to
receive a series of separate and distinct payments.”

 

(C)  Section 4(E) is hereby removed in its entirety and
replaced in its entirety as follows:

 

“Section 4(E) Potential Payment Reduction.  Notwithstanding any other provision of this
Agreement to the contrary, in the event that any payment that is either
received by you or paid by the Company on your behalf or any property, or any
other benefit provided to you under this Agreement or under any other plan,
arrangement or agreement with the Company or any other person whose payments or
benefits are treated as contingent on a change of ownership or control of the
Company (or in the ownership of a substantial portion of the assets of the
Company) or any person affiliated with the Company or such person (but only if
such payment or other benefit is in connection with your employment by the
Company) (collectively the “Company Payments”), will be subject to the tax (the
“Excise Tax”) imposed by Internal Revenue Code Section 4999 (and any
similar tax that may hereafter be imposed by any taxing authority), then you
will be entitled to receive either (i) the full amount of the Company
Payments, or (ii) a portion of the Company Payments having a value equal
to $1 less than three (3) times your “base amount” (as such term is
defined in Internal Revenue Code Section 280G(b)(3)(A)), whichever of
clauses (i) and (ii), after taking into account applicable federal, state,
and local income taxes and the Excise Tax, results in the receipt by you on an
after-tax basis, of the greatest portion of the Company Payments.  Any determination required under this Section 4(E) shall
be made in writing by the independent public accountant of the Company (the “Accountants”),
whose determination shall be conclusive and binding for all purposes upon you
and the Company.  For purposes of making
any calculation required by this Section 4(E), the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good-faith interpretations concerning the application of
Internal Revenue Code Sections 280G and 4999. 
If there is a reduction of the Company Payments pursuant to this Section 4(E),
such reduction shall occur in the following order:  (A) any cash 

 

2

 

severance
payable by reference to your base salary or target incentive bonus, (B) any
other cash amount payable to you, (C) any employee benefit valued as a “parachute
payment,” and (D) acceleration of vesting of any outstanding equity award.”

 

2.             Miscellaneous.

 

(A) 
Interpretation.  The validity,
interpretation, construction and performance of this Amendment No. 1 to
the Agreement shall be governed by the laws of the State of South Carolina.

 

(B) 
Other than as expressly amended hereby, the rest of the terms and provisions of
the Agreement shall remain in full force and effect.

 

If
you agree that the foregoing correctly sets forth the agreement between us,
please sign the enclosed copy of this Amendment No. 1 to the Agreement in
the space indicated below and return it to the Company.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  KEMET
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Larry
  C. McAdams

  
	
   

  	
  Name:

  	
  Larry
  C. McAdams

  
	
   

  	
  Title:

  	
  Vice President, Human
  Resources

  

 

 

Agreed
to as of the day and year first written above:

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/William
  M. Lowe, Jr.

  
	
   

  	
  William
  M. Lowe, Jr.

  

 

 

Dated
as of

April 29,
2010

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]