Document:

aldr-ex1017_612.htm

 

EXHIBIT 10.17

 

FOURTH AMENDMENT TO LEASE

 

 

This Fourth Amendment to Lease (this “Fourth Amendment”) is made and entered into by and between KBS NORTH CREEK, LLC, a Delaware limited liability company (“Landlord”), as successor-in-interest to RREEF America REIT II Corp. KK (“Original Landlord”), and ALDER BIOPHARMACEUTICALS, INC., a Delaware corporation (“Tenant”), and shall be effective for all purposes as of the date that this Fourth Amendment is fully executed (the “Effective Date”).

W I T N E S S E T H:

WHEREAS, Landlord and Tenant are parties to that certain Lease dated for reference purposes August 5, 2005, originally entered into by and between Original Landlord and Tenant (the “Original Lease”), as amended by (i) that certain First Amendment to Lease dated as of February 1, 2008 (the “First Amendment”), (ii) that certain Second Amendment to Lease dated as of September 23, 2010 (the “Second Amendment”), and (iii) that certain Third Amendment to Lease dated as of August 21, 2013 (the “Third Amendment”) (the Original Lease, as amended by the First Amendment, the Second Amendment, and the Third Amendment, is hereinafter referred to as the “Lease”), pursuant to which Tenant leases from Landlord certain premises containing 36,654 square feet of space (the “Current Premises”) consisting of (i) 25,440 square feet of space comprising the entirety of the building located at 11804 North Creek Parkway S, Building 6, Bothell, Washington 98011 (“Building 6”) and (ii) 11,214 square feet of space in the building located at 18702 North Creek Parkway S, Bothell, Washington  98011 (“Building 4”), which Building 4 and Building 6 are part of that certain building complex known as the North Creek Parkway Center, consisting of six (6) buildings located at 18912, 18916, 18804, 18702, 18706, and 11804 North Creek Parkway, Bothell, Washington (the “Building Complex”); 

WHEREAS, Landlord has succeeded to all the right, title and interest of the “Landlord” under the Lease as successor-in-interest to Original Lease; and

WHEREAS, Landlord and Tenant desire to expand the “Premises” (as such term is used in the Lease), extend the Term of the Lease and further amend the Lease, as more particularly described hereinbelow;

NOW, THEREFORE, pursuant to the foregoing, and in consideration of the mutual covenants and agreements contained herein and in the Lease, the receipt and sufficiency of which are hereby acknowledged, the Lease is hereby amended as follows:

	
1.
	
Defined Terms.  All capitalized terms used herein shall have the same meaning as defined in the Lease, unless otherwise defined in this Fourth Amendment.

	
2.
	
Extension of the Term of the Lease.  Landlord and Tenant hereby agree to extend the Term of the Lease (stipulated to expire on February 28, 2017) for an additional period of seventeen (17) months, commencing on March 1, 2017 (the “Third Extension Commencement Date”) and continuing through and expiring on July 31, 2018 (such 

718200423.3

 

		
period, the “Third Extension Term”), upon and subject to all of the existing terms of the Lease, except as otherwise hereinafter provided. 

	
3.
	
Expansion of Premises.  The parties hereby agree that the “Premises” (as such term is used in the Lease) shall be expanded in accordance with the terms set forth below:

	
 
	
(a)
	
Suite 208 Expansion Premises.  Effective as of December 1, 2015 (the “Suite 208 Expansion Date”), the “Premises” (as such term is used in the Lease) shall be expanded to include that certain 2,628 rentable square feet of space on the second (2nd) floor of Building 4 currently designated as Suite 208, as further depicted on Exhibit A-1 attached hereto (the “Suite 208 Expansion Premises”), upon and subject to all of the existing terms of the Lease, except as otherwise hereinafter provided.  

	
 
	
(b)
	
Suite 202 Expansion Premises.  Effective as of the date that Landlord delivers the Suite 202 Expansion Premises (hereinafter defined) to Tenant (such date being the “Suite 202 Expansion Date”), the “Premises” (as such term is used in the Lease) shall be expanded to include that certain 14,490 rentable square feet of space on the second (2nd) floor of Building 4 currently designated as Suite 202, as further depicted on Exhibit A-2 attached hereto (the “Suite 202 Expansion Premises”), upon and subject to all of the existing terms of the Lease, except as otherwise hereinafter provided.  Tenant acknowledges that the Suite 202 Expansion Premises is currently occupied by a third party (the “Existing Suite 202 Tenant”) pursuant to the terms of a lease between Landlord and the Existing Suite 202 Tenant (the “Existing Suite 202 Lease”), which Existing Suite 202 Lease is scheduled to expire on February 29, 2016 (the “Scheduled Suite 202 Expiration Date”).  In no event shall Landlord be liable for any delays in the delivery of the Suite 202 Expansion Premises to Tenant due to the Existing Suite 202 Tenant holding over in the Suite 202 Expansion Premises past the Scheduled Suite 202 Expiration Date.  The parties stipulate and agree that, to the extent that the Existing Suite 202 Lease terminates and the Existing Suite 202 Tenant surrenders and vacates the Suite 202 Expansion Premises prior to the Scheduled Suite 202 Expiration Date, the Suite 202 Expansion Date shall occur upon such earlier date that Landlord delivers the Suite 202 Expansion Premises to Tenant following the completion (as reasonably determined by Landlord) of Landlord’s Preparatory Work (hereinafter defined) and otherwise in accordance with the terms of this Paragraph 3.  Following the Existing Suite 202 Tenant’s surrender of and vacation from the Suite 202 Expansion Premises in compliance with all applicable legal requirements and the terms of the Existing Suite 202 Lease (the “Existing Tenant Suite 202 Surrender Date”), Landlord will prepare the Suite 202 Expansion Premises to be in a broom-clean condition free of personal property and debris (such preparatory work, hereinafter the “Landlord’s Preparatory Work”) prior to delivering the Suite 202 Expansion Premises to Tenant (which shall be the Suite 202 Expansion Date), provided that the Landlord’s Preparatory Work for, and the delivery of, the Suite 202 Expansion Premises to Tenant shall occur no later than fifteen (15) days following the Existing Tenant Suite 202 Surrender Date.  Tenant 

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acknowledges that Landlord’s Preparatory Work for the Suite 202 Expansion Premises cannot begin until after the Existing Tenant Suite 202 Surrender Date. 

	
 
	
(c)
	
Suite 213 Expansion Premises.  Effective as of the date that Landlord delivers the Suite 213 Expansion Premises (hereinafter defined) to Tenant (such date being the “Suite 213 Expansion Date”), the “Premises” (as such term is used in the Lease) shall be expanded to include that certain 1,776 rentable square feet of space on the second (2nd) floor of Building 4 currently designated as Suite 213, as further depicted on Exhibit A-3 attached hereto (the “Suite 213 Expansion Premises”), upon and subject to all of the existing terms of the Lease, except as otherwise hereinafter provided.  Tenant acknowledges that the Suite 213 Expansion Premises is currently occupied by a third party (the “Existing Suite 213 Tenant”) pursuant to the terms of a lease between Landlord and the Existing Suite 213 Tenant (the “Existing Suite 213 Lease”), which Existing Suite 213 Lease is scheduled to expire on April 30, 2016 (the “Scheduled Suite 213 Expiration Date”).  In no event shall Landlord be liable for any delays in the delivery of the Suite 213 Expansion Premises to Tenant due to the Existing Suite 213 Tenant holding over in the Suite 213 Expansion Premises past the Scheduled Suite 213 Expiration Date.  The parties stipulate and agree that, to the extent that the Existing Suite 213 Lease terminates and the Existing Suite 213 Tenant surrenders and vacates the Suite 213 Expansion Premises prior to the Scheduled Suite 213 Expiration Date, the Suite 213 Expansion Date shall occur upon such earlier date that Landlord delivers the Suite 213 Expansion Premises to Tenant following the completion (as reasonably determined by Landlord) of Landlord’s Preparatory Work for the Suite 213 Expansion Premises, and otherwise in accordance with the terms of this Paragraph 3.  Following the Existing Suite 213 Tenant’s surrender of and vacation from the Suite 213 Expansion Premises in compliance with all applicable legal requirements and the terms of the Existing Suite 213 Lease (the “Existing Tenant Suite 213 Surrender Date”), Landlord will perform Landlord’s Preparatory Work for the Suite 213 Expansion Premises prior to delivering the Suite 213 Expansion Premises to Tenant (i.e., the Suite 213 Expansion Date), provided that the Landlord’s Preparatory Work for, and the delivery of, the Suite 213 Expansion Premises to Tenant shall occur no later than fifteen (15) days following the Existing Tenant Suite 213 Surrender Date. Tenant acknowledges that Landlord’s Preparatory Work for the Suite 213 Expansion Premises cannot begin until after the Existing Tenant Suite 213 Surrender Date.  

	
 
	
(d)
	
Confirmation of Premises and Expansion Date.  The Suite 208 Expansion Premises, the Suite 202 Expansion Premises and the Suite 213 Expansion Premises shall collectively be known as the “Fourth Amendment Expansion Premises”.  Following the Suite 208 Expansion Date, the Suite 202 Expansion Date and the Suite 213 Expansion Date, the Current Premises and the Fourth Amendment Expansion Premises shall collectively hereinafter be known as the “Premises” and shall contain a total of 55,548 rentable square feet of space in Building 4 and Building 6.  Upon occurrence of the Suite 208 Expansion Date, the Suite 202 Expansion Date and/or the Suite 213 Expansion Date, Landlord may provide a commencement certificate to Tenant, which Tenant shall execute and 

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return within ten (10) days after receipt, in order to acknowledge the date upon which the respective expansion date occurred.  Tenant’s failure to execute and return such commencement certificate within the applicable ten (10) day period shall be deemed to be Tenant’s approval of the applicable commencement certificate and the expansion date set forth therein.  Landlord’s failure to send such commencement certificate shall have no effect on the expansion date.  

	
4.
	
Pre-Term Access to Fourth Amendment Expansion Premises.  Beginning no earlier than (i) November 25, 2015 for the Suite 208 Expansion Premises, (ii) one (1) business day after the Existing Tenant Suite 202 Surrender Date for the Suite 202 Expansion Premises and (iii) one (1) business day after the Existing Tenant Suite 213 Surrender Date for the Suite 213 Expansion Premises (any such date being referred to herein as the “Pre-Term Access Commencement Date”), and ending on the day immediately preceding the Suite 208 Expansion Date, the Suite 202 Expansion Date and the Suite 213 Expansion Date, respectively (any such applicable period being referred to as the “Pre-Term Access Period”), Tenant, and Tenant’s contractors reasonably approved by Landlord, may access the applicable Fourth Amendment Expansion Premises (the “Pre-Term Access”) for the sole purpose of installing Tenant’s furniture, equipment, computer and phone cabling and wiring systems, in the applicable Fourth Amendment Expansion Premises; provided, however, Tenant and/or Tenant’s contractors, must coordinate all access to the applicable Fourth Amendment Expansion Premises during such Pre-Term Access Period with the Property Manager prior to such access.  Except for the payment of (x) Annual Rent attributable to the Fourth Amendment Expansion Premises, (y) Tenant’s Proportionate Share of Expenses attributable to the Fourth Amendment Expansion Premises and (z) Tenant’s Proportionate Share of Taxes attributable to the Fourth Amendment Expansion Premises, all other terms, conditions, rules, regulations and obligations of Tenant, as set forth in the Lease and as amended in this Fourth Amendment, shall apply during the Pre-Term Access Period.  Tenant, and its approved contractors, shall not interfere with the Landlord’s Preparatory Work or Landlord’s performance of the Fourth Amendment Improvements (hereinafter defined), or cause any labor dispute as a result of such Pre-Term Access, and Tenant hereby agrees to indemnify, defend, and hold Landlord harmless from any loss or damage to such property, and all liability, loss, or damage arising from any injury to the Building Complex or Project Area, Building 4 or the property of Landlord, its contractors, subcontractors, or materialmen, and any death or personal injury to any person or persons arising out of such Pre-Term Access.  Any such Pre-Term Access shall be subject to Tenant providing to Landlord satisfactory evidence of insurance for personal injury and property damage related to such Pre-Term Access Period prior to the commencement of the Pre-Term Access Period, including such insurance from Tenant’s contractors, as required by Landlord for third party contractors working in Building 4.  Any delay in putting Tenant in possession of any portion of the Fourth Amendment Expansion Premises due to such Pre-Term Access Period shall not serve to extend the Term of the Lease or to make Landlord liable for any damages arising therefrom.

718200423.34

 

	
5.
	
Annual Rent.   

	
 
	
(a)
	
Current Premises.  Tenant shall continue to pay Annual Rent for the Current Premises in accordance with the existing terms and provisions of the Lease applicable thereto; provided, however, commencing on and as of the Third Extension Commencement Date and continuing through the expiration of the Third Extension Term, Tenant shall pay Annual Rent for the Current Premises in the following amounts:

			
	
Period
	
Rate/Rsf/Annum (approx.)
	
Monthly Installment

	
03/01/2017 – 01/31/2018
	
$18.25, NNN
	
$55,744.63, NNN

	
02/01/2018 – 07/31/2018
	
$18.80, NNN
	
$57,424.60, NNN

 

	
 
	
(b)
	
Suite 208 Expansion Premises Through 11/30/2016.  Commencing on and as of the Suite 208 Expansion Date and continuing through November 30, 2016, Tenant shall pay Annual Rent for the Suite 208 Expansion Premises in the amount of $3,547.80 per month (which is equal to $1.35/rsf/month), plus NNN.

	
 
	
(c)
	
Suite 202 Expansion Premises Through 11/30/2016.  Commencing on and as of the Suite 202 Expansion Date and continuing through November 30, 2016, Tenant shall pay Annual Rent for the Suite 202 Expansion Premises in the amount of $19,561.50 per month (which is equal to $1.35/rsf/month), plus NNN.

	
 
	
(d)
	
Suite 213 Expansion Premises Through 11/30/2016.  Commencing on and as of the Suite 213 Expansion Date and continuing through November 30, 2016, Tenant shall pay Annual Rent for the Suite 213 Expansion Premises in the amount of $2,397.60 per month (which is equal to $1.35/rsf/month), plus NNN.

	
 
	
(e)
	
Fourth Amendment Expansion Premises from 12/01/2016 – 07/31/2018.  Commencing on and as of December 1, 2016 and continuing through the expiration of the Third Extension Term (i.e., July 31, 2018), Tenant shall pay Annual Rent for the Fourth Amendment Expansion Premises in the following amounts:

			
	
Period
	
Rate/Rsf/Month (approx.)
	
Monthly Installment

	
12/01/2016 – 11/30/2017
	
$1.39, NNN
	
$26,262.66, NNN

	
12/01/2017 – 07/31/2018
	
$1.43, NNN
	
$27,018.42, NNN

 

	
6.
	
Tenant’s Proportionate Share of Expenses and Taxes.  Throughout the Third Extension Term, Tenant shall continue to pay for all items of additional rent, including, without limitation, Tenant’s Proportionate Share of Expenses and Tenant’s Proportionate Share of Taxes, in accordance with the provisions of the Lease applicable thereto; provided, however, for the purposes of calculating Tenant’s Proportionate Share of Expenses and Tenant’s Proportionate Share of Taxes for the Fourth Amendment Expansion Premises, Landlord and Tenant hereby agree and stipulate that, (i) effective as of the Suite 208 Expansion Date, Tenant’s Proportionate Share for the Suite 208 Expansion Premises shall be 4.4141% (2,628 rsf/59,537 rsf) with respect to Building 4 and 1.28% (2,628 rsf/205,298 rsf) with respect to the Building Complex; (ii) effective as of the Suite 202 

718200423.35

 

		
Expansion Date, Tenant’s Proportionate Share for the Suite 202 Expansion Premises shall be 24.3378% (14,490 rsf/59,537 rsf) with respect to Building 4 and 7.058% (14,490 rsf/205,298 rsf) with respect to the Building Complex; and (iii) effective as of the Suite 213 Expansion Date, Tenant’s Proportionate Share for the Suite 213 Expansion Premises shall be 2.983% (1,776 rsf/59,537 rsf) with respect to Building 4 and 0.8651% (1,776 rsf/205,298 rsf) with respect to the Building Complex.  Expenses and Taxes for the calendar year 2015 are estimated to be $7.33/rsf/annum. 

	
7.
	
Condition of the Premises.  Tenant hereby accepts the Premises (including the Current Premises and the Fourth Amendment Expansion Premises) in its existing “AS-IS”, “WHERE-IS” and “WITH ALL FAULTS” condition and Landlord shall have no obligation whatsoever to refurbish or otherwise improve the Premises throughout the remainder of the Term of the Lease, as extended by the Third Extension Term; provided, however, Landlord hereby agrees to perform, at Landlord’s cost: (i) Landlord’s Preparatory Work as described in Paragraph 3 of this Fourth Amendment; and (ii) the Fourth Amendment Improvements (defined in the attached Exhibit B) in accordance with and subject to the terms and conditions of the Work Letter attached hereto as Exhibit B and incorporated herein for all purposes.  In addition, Landlord hereby agrees to install, at Tenant’s sole cost and expense, a card-key access system to the restrooms on the second (2nd) floor of Building 4 that is compatible with the current card-key system.  Except as set forth herein, Landlord and Tenant acknowledge and agree that any tenant improvement allowance(s) or improvements to the Premises required to be provided by Landlord under the Lease, including, without limitation, those set forth in Paragraph 6 and Exhibit A of the Third Amendment, Paragraph 8 and Exhibit C of the Second Amendment, Exhibit B of the First Amendment and Exhibit B of the Original Lease, have been completed and/or satisfied in their entirety.

	
8.
	
Parking.  Tenant shall continue to have its existing parking rights in accordance with and subject to the existing terms and conditions applicable thereto.  In addition, Tenant shall be entitled to use 3.18 unreserved parking spaces per 1,000 rentable square feet in (i) the Suite 208 Expansion Premises effective as of the Suite 208 Expansion Date; (ii) the Suite 202 Expansion Premises as of the Suite 202 Expansion Date; and (iii) the Suite 213 Expansion Premises as of the Suite 213 Expansion Date, which in the aggregate equal sixty (60) additional unreserved parking spaces, at no additional charge to Tenant through the expiration of the Third Extension Term.  All parking at the Building Complex is on a non-exclusive, first come first serve, basis.

	
9.
	
Renewal Option.  Tenant shall continue to have the option to renew the Term of the Lease beyond the Third Extension Term in accordance with and subject to the terms and conditions set forth in Exhibit B attached to the Third Amendment; provided, however, that said Exhibit B is hereby amended so that all references to the “Second Extension Term” shall be amended to be the “Third Extension Term”.

	
10.
	
Right of First Offer.  Landlord hereby grants to Tenant a right of first offer in accordance with and subject to the terms and conditions of Exhibit C attached hereto and incorporated herein for all purposes.  The Right of First Offer set forth in Paragraph 10 and Exhibit D of the Third Amendment is hereby null and void and of no further force or effect.

718200423.36

 

	
11.
	
No Preferential Rights or Options.  Except for the renewal option described in Paragraph 9 of this Fourth Amendment and the right of first offer set forth in Paragraph 10 of this Fourth Amendment and Exhibit C attached hereto, notwithstanding anything contained in the Lease to the contrary, Landlord and Tenant stipulate and agree that Tenant has no preferential rights or options under the Lease, as herein amended, such as any rights of renewal, expansion, reduction, refusal, offer, purchase, termination, relocation or any other such preferential rights or options, such rights originally set forth in the Lease, including, without limitation, the expansion option set forth in Paragraph 9 and Exhibit C of the Third Amendment, being hereby null and void and of no further force or effect. 

	
12.
	
Installment Payable Upon Execution.  Concurrently with the execution of this Fourth Amendment, Tenant shall pay to Landlord the sum of $5,153.07, which shall be applied towards the first month of Annual Rent, Tenant’s Proportionate Share of Expenses and Tenant’s Proportionate Share of Taxes that become due for the Suite 208 Expansion Premises (until such amount is exhausted).

	
13.
	
Landlord’s Notice Address.  Landlord’s address for all notices to be delivered under the Lease is hereby amended to be as follows (or such other address as Landlord may designate in writing):

KBS North Creek, LLC 

c/o CBRE, Inc.

1909 214th Street South East, Suite 101

Bothell, Washington  98021

Attn: Jodie Harwood

 

With a copy to:

 

KBS Capital Advisors, LLC

800 Newport Center Drive, Suite 700

Newport Beach, California  92660

Attn: Mark Brecheen, Senior Vice President

	
14.
	
Brokers.  Landlord and Tenant each warrant that they have had no dealings with any broker or agent other than Kidder Matthews and Flinn Ferguson (collectively, the “Brokers”) in connection with the negotiation or execution of this Fourth Amendment, and each of Landlord and Tenant agrees to indemnify and hold harmless the other party from and against any and all costs, expenses, or liability for commissions or other compensations or charges claimed by any broker or agent, other than the Brokers, with respect to this Fourth Amendment.

	
15.
	
Business Interruption.  Notwithstanding anything in the Lease to the contrary, Landlord shall not be responsible for, and Tenant releases and discharges Landlord from, and Tenant further waives any right of recovery from Landlord for, any loss for or from business interruption or loss of use of the Premises suffered by Tenant in connection with Tenant’s use or occupancy of the Premises.  This provision shall not affect Tenant’s right to abatement of rent in accordance with Article 22 of the Original Lease.  

718200423.37

 

	
16.
	
Miscellaneous.  With the exception of those terms and conditions specifically modified and amended herein, the herein referenced Lease shall remain in full force and effect in accordance with all its terms and conditions.  In the event of any conflict between the terms and provisions of this Fourth Amendment and the terms and provisions of the Lease, the terms and provisions of this Fourth Amendment shall supersede and control. 

	
17.
	
Counterparts/Facsimiles.  This Fourth Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one agreement.  To facilitate execution of this Fourth Amendment, the parties may execute and exchange telefaxed or e-mailed counterparts of the signature pages and such counterparts shall serve as originals.

 

[SIGNATURE PAGE TO FOLLOW]

 

718200423.38

 

SIGNATURE PAGE TO FOURTH AMENDMENT TO LEASE
BY AND BETWEEN KBS NORTH CREEK, LLC, AS LANDLORD,
AND ALDER BIOPHARMACEUTICALS, INC., AS TENANT

 

IN WITNESS WHEREOF, Landlord and Tenant, acting herein by duly authorized individuals, have caused these presents to be executed as of the dates set forth below, to be effective for all purposes, however, as of the Effective Date set forth herein.

 

LANDLORD:

 

KBS NORTH CREEK, LLC,

a Delaware limited liability company

 

By: KBS Capital Advisors, LLC,

a Delaware limited liability company,

its authorized agent

 

 

 

By: /s/ Mark Brecheen

Mark Brecheen,

Senior Vice President

 

Date: November 12, 2015_

 

 

 

TENANT:

 

ALDER BIOPHARMACEUTICALS, INC.,

a Delaware corporation

 

 

 

By: /s/ Randall C. Schatzman

Name: Randall C. Schatzman, Ph. D.

Title: President and CEO

 

Date: November 6, 2015  

 

 

718200423.3Signature Page - 1

 

 

STATE OF CALIFORNIA          )

                                                      )ss.

COUNTY OF ORANGE             )

 

I certify that I know or have satisfactory evidence that Mark Brecheen is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Senior Vice President of KBS Capital Advisors, LLC, a Delaware limited liability company, as the authorized agent of KBS North Creek, LLC, a Delaware limited liability company, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

 

Dated:

 

 

(Signature)

 

 

(Print Name)

Notary Public, in and for the State

of California, residing at __________________________

My Commission Expires ____________

 

 

 

STATE OF  Washington________)

                                                        )ss.

COUNTY OF    King______        )

 

I certify that I know or have satisfactory evidence that       Randall C. Schatzman     is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the            President and CEO       of ALDER BIOPHARMACEUTICALS, INC., a Delaware corporation, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

 

Dated:November 6, 2015.

 

/s/  Marilyn N. Singer

(Signature)

 

Marilyn N. Singer

(Print Name)

Notary Public, in and for the State

of       WA        , residing at    Bothell, WA____________

My Commission Expires _January 22, 2017_______

 

718200423.3Signature Page - 2

 

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT

 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

 

 

State of California)

County of Orange)

 

On December 11, 2015 before me, B. Arata, Notary Public, personally appeared Mark Brecheen, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 

 

WITNESS my hand and official seal.

 

Signature   /s/  B. Arata

 

 

 

EXHIBIT A-1

SUITE 208 EXPANSION PREMISES

 

718200423.3A-1 --1

 

 

EXHIBIT A-2

SUITE 202 EXPANSION PREMISES

 

718200423.3A-2 -- 1

 

EXHIBIT A-3

SUITE 213 EXPANSION PREMISES

 

718200423.3A-3-- 1

 

EXHIBIT B

WORK LETTER

THIS WORK LETTER is attached as Exhibit B to the Fourth Amendment to Lease between KBS NORTH CREEK, LLC, a Delaware limited liability company, as Landlord, and ALDER BIOPHARMACEUTICALS, INC., a Delaware corporation, as Tenant, and constitutes the further agreement between Landlord and Tenant as follows:

a)Landlord agrees to furnish or perform, at Landlord’s sole cost and expense, those items of construction and those improvements (the “Fourth Amendment Improvements”) specified below:

	
 
	
i.
	
Expand the men’s and women’s restrooms on the second (2nd) floor of Building 4, as set forth on the plan created by JPC, labeled SP-4.2 dated October 7, 2015, which plan has been mutually approved by Landlord and Tenant and is shown on Exhibit B-1 attached hereto and incorporated herein for all purposes (the “Restroom Work”); and

	
 
	
ii.
	
Install additional thermostats throughout the Fourth Amendment Expansion Premises, where appropriate, so as to allow Tenant to control the temperature in the Premises to within a three (3) degree variance as long as Building 4 is occupied by multiple tenants.

b)If Tenant shall desire any changes in the Fourth Amendment Improvements, Tenant shall so advise Landlord in writing and Landlord shall determine whether such changes can be made in a reasonable and feasible manner.  Any and all costs of reviewing any requested changes, and any and all costs of making any changes to the Fourth Amendment Improvements which Tenant may request and which Landlord may agree to shall be at Tenant’s sole cost and expense and shall be paid to Landlord upon demand and before execution of the change order.

c)Landlord shall proceed with and complete the construction of the Fourth Amendment Improvements.  As soon as such improvements have been Substantially Completed, Landlord shall notify Tenant in writing of the date that the Fourth Amendment Improvements were Substantially Completed.  The Fourth Amendment Improvements shall be deemed substantially completed (“Substantially Completed”) when, in the opinion of the Landlord’s architect (whether an employee or agent of Landlord or a third party architect) (“Architect”), the Fourth Amendment Improvements are substantially completed except for punch list items which do not prevent in any material way the use of the Premises for the purposes for which they were intended.  In the event Tenant, its employees, agents, or contractors cause construction of such Fourth Amendment Improvements to be delayed, the date of Substantial Completion shall be deemed to be the date that, in the opinion of the Architect, Substantial Completion would have occurred if such delays had not taken place.  Without limiting the foregoing, Tenant shall be solely responsible for delays caused by Tenant’s request for any changes in the plans, Tenant’s request for change orders that result in unanticipated long lead items or Tenant’s interference with the construction of the Fourth Amendment Improvements (each of the foregoing, a “Tenant Delay”), and such Tenant Delays shall not cause a deferral of the applicable expansion date for each of the Fourth Amendment Expansion Premises beyond what it otherwise would have been.  

718200423.3B-1

 

After the applicable expansion date Tenant shall, upon demand, execute and deliver to Landlord a letter of acceptance of delivery of the applicable Fourth Amendment Expansion Premises.  In the event of any dispute as to the Fourth Amendment Improvements, the certificate of the Architect shall be conclusive absent manifest error. 

d)The failure of Tenant to take possession of or to occupy any portion of the Fourth Amendment Expansion Premises shall not serve to relieve Tenant of obligations arising on the applicable expansion date or delay the payment of Rent by Tenant.  

e)Except for incomplete punch list items, Tenant upon the applicable expansion date shall have and hold the applicable Fourth Amendment Expansion Premises as the same shall then be without any liability or obligation on the part of Landlord for making any further alterations or improvements of any kind in or about the Fourth Amendment Expansion Premises.

f)Notwithstanding anything herein to the contrary, Tenant acknowledges that the Fourth Amendment Improvements will be completed while Tenant occupies the Premises and may be performed during normal business hours for Building 4.  Tenant agrees to cooperate with Landlord and to make the Premises reasonably available to Landlord and its contractors for the performance of such Fourth Amendment Improvements.  Tenant acknowledges that some interruptions and/or interference with Tenant’s business may occur during the course of the Fourth Amendment Improvements, but agrees that Landlord shall not be liable to Tenant for any damage caused by any interruptions and/or inconveniences to Tenant or its business as a result of the Fourth Amendment Improvements, and that no interruptions or inconveniences to Tenant or its business suffered as a result of the Fourth Amendment Improvements shall constitute an eviction of Tenant from the Premises, whether constructive or otherwise, and Tenant shall in no event be excused from paying the rental that it is scheduled to pay pursuant to the terms of the Lease, as amended herein.  Landlord and Tenant shall cooperate and cause their respective employees, agents and contractors to cooperate with the other during said period in order to complete the Fourth Amendment Improvements as well as to minimize any interference with Tenant’s business operations in the Premises.  Such cooperation by Tenant shall include, by way of example only and not in limitation, moving, packing, and/or other temporary relocation of Tenant’s furniture, fixtures, equipment, artwork and other personal property within the Premises at Tenant’s expense.

 

 

 

718200423.3B-2

 

EXHIBIT B-1

RESTROOM WORK

718200423.3B-1 -- 1

 

718200423.3B-1 -- 2

 

EXHIBIT C

RIGHT OF FIRST OFFER

THIS RIGHT OF FIRST OFFER is attached as Exhibit C to the Fourth Amendment to Lease between KBS NORTH CREEK, LLC, a Delaware limited liability company, as Landlord, and ALDER BIOPHARMACEUTICALS, INC., a Delaware corporation, as Tenant, and constitutes the further agreement between Landlord and Tenant as follows:

a)“Offered Space” shall mean any leasable space that becomes available during the Term of the Lease (as extended by the Third Extension Term) in the Building Complex.  Tenant’s right of first offer in and to each Offered Space offered by Landlord to Tenant pursuant to this Exhibit C shall each be separate, one-time rights of first offer, subject to the terms and conditions contained in the First Offer Notice (as said term is defined below) for such specific space.

b)Provided that as of the date of the giving of any First Offer Notice, (i) Tenant is the Tenant originally named herein, (ii) Tenant actually occupies at least 55,548 rentable square feet of space in the Building Complex, and (iii) no event of default or event which but for the passage of time or the giving of notice, or both, would constitute an event of default has occurred and is continuing, if at any time during the Term of the Lease any such Offered Space is vacant and unencumbered by any rights of any third party, then Landlord, before offering such Offered Space to anyone, other than the tenant then occupying such space (or its affiliates), shall offer to Tenant the right to include the Offered Space within the Premises on the same terms and conditions upon which Landlord intends to offer the Offered Space for lease; provided, however and notwithstanding anything herein to the contrary, in the event that the Tenant’s Notice (as hereinafter defined) is delivered to Landlord no later than July 31, 2016, then and in such event, Tenant shall have the right to request that (a) the Term of the Lease with respect to such Offered Space be co-terminus with the then-existing Term of the Lease and (b) the Annual Rent payable with respect to such Offered Space shall be equal to the same amounts (based on a per rentable square foot basis) required to be paid with respect to the then-existing Premises, as such rental rate may escalate from time to time, provided that Tenant shall accept such Offered Space in its existing “AS-IS”, “WHERE-IS” and “WITH ALL FAULTS” condition.  Notwithstanding anything to the contrary herein or in the Lease, the right of first offer granted to Tenant under this Exhibit C shall be subject and subordinate to (i) the rights of all tenants at the Building Complex under existing leases, and (ii) the herein reserved right of Landlord to renew or extend the term of any lease with the tenant then occupying such space (or any of its affiliates), whether pursuant to a renewal or extension option in such lease or otherwise.

c)Such offer shall be made by Landlord to Tenant in a written notice (hereinafter called the “First Offer Notice”) which offer shall designate the space being offered and shall specify the terms which Landlord intends to offer with respect to any such Offered Space.  Tenant may accept the offer set forth in the First Offer Notice by delivering to Landlord an unconditional acceptance (hereinafter called “Tenant’s Notice”) of such offer within five (5) business days after delivery by Landlord of the First

718200423.3C-1

 

Offer Notice to Tenant.  Time shall be of the essence with respect to the giving of Tenant’s Notice.  If Tenant does not accept (or fails to timely accept) an offer made by Landlord pursuant to the provisions of this Exhibit C with respect to the Offered Space designated in the First Offer Notice and execute the ROFO Amendment (defined below) within thirty (30) days after the delivery of the First Offer Notice, then Landlord shall be under no further obligation with respect to such space by reason of this Exhibit C.

d)Tenant must accept all Offered Space offered by Landlord at any one time if it desires to accept any of such Offered Space and may not exercise its right with respect to only part of such space.  In addition, if Landlord desires to lease more than just any such Offered Space to one tenant, Landlord may offer to Tenant pursuant to the terms hereof all such space which Landlord desires to lease, and Tenant must exercise its rights hereunder with respect to all such space and may not insist on receiving an offer for just such Offered Space.

e)If Tenant at any time declines any First Offer Notice to any Offered Space offered by Landlord, Tenant shall be deemed to have irrevocably waived all further rights to such Offered Space under this Exhibit C, and Landlord shall be free to lease such Offered Space to third parties including on terms which may be less favorable to Landlord than those offered to Tenant.

f)In the event that Tenant exercises its rights to any Offered Space pursuant to this Exhibit C, then Landlord shall prepare, and Tenant shall execute, an amendment to the Lease which confirms such expansion of the Premises and the other provisions applicable thereto (the “ROFO Amendment”).

 

718200423.3C-2Exhibit 10.4

 

SECOND AMENDMENT TO LEASE

 

This Second Amendment to Lease (this “Amendment”) is dated as of August 1, 2015, by and between DIV NEEDHAM 115 LLC, a Massachusetts limited liability company (successor-in-interest to Fourth Avenue Ventures Limited Partnership), as landlord (“Landlord”), and CELLDEX THERAPEUTICS, INC., a Delaware corporation (successor-by name-change to T Cell Sciences, Inc. and Avant Immunotherapeutics, Inc.), as tenant (“Tenant”), with respect to that certain Lease dated as of May 1, 1996 (the “1996 Lease”), as amended by that certain First Amendment to Lease dated as of November 29, 2005 (the “First Amendment”; the 1996 Lease as amended by the First Amendment is referred to herein as the “Original Lease”, and the Original Lease as amended hereby is referred to herein as the “Lease”), by and between Landlord and Tenant, regarding certain premises (the “Existing Premises”) constituting approximately 35,189 rentable square feet on the first (1st) floor of the building located at 115-119 Fourth Avenue, Needham, Massachusetts (the “Building”), as more particularly described in the Lease.

 

WHEREAS, Landlord and Tenant desire to enter into this Amendment to modify certain terms and conditions of the Lease, as more particularly set forth herein.

 

NOW, THEREFORE, for One Dollar ($1.00) and other good and valuable consideration, and in consideration of the mutual covenants and agreements set forth herein, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree that:

 

A.                                    Defined Terms.  Unless otherwise defined herein, all capitalized terms used in this Amendment shall have the meanings ascribed to them in the Original Lease.

 

B.                                    Lease Amendments.  The Original Lease is hereby amended as follows:

 

1.                                      Term.  Landlord and Tenant acknowledge and agree that the Lease Term commenced on May 1, 1996 and is scheduled to expire on April 30, 2017.  Landlord and Tenant hereby extend the Lease Term for the period commencing on May 1, 2017 and expiring on July 31, 2020 (the “Additional Term”), unless further extended or earlier terminated in accordance with the provisions of the Lease.

 

2.                                      Expansion Premises.  Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, certain space currently leased to Partners Community Healthcare, Inc. (“Partners”), such space consisting of approximately 11,540 rentable square feet on the first (1st) floor of the Building as more particularly described on Exhibit A attached hereto (the “Expansion Premises”).  Tenant acknowledges that Partners, under its lease, has the right to occupy the Expansion Premises through and including November 30, 2017, with an option to extend its lease term through and including November 30, 2022.  Effective as of the date on which Landlord delivers the Expansion Premises to Tenant in the condition required by Section 3 of this Amendment (the “Expansion Premises Commencement Date”), and continuing for the duration of the Lease Term (as extended by the Additional Term), the Expansion Premises

 

1

 

shall be added to the “Premises” demised under the Lease.  Landlord shall use commercially reasonable efforts to provide written notice to Tenant at least ninety (90) days prior to the date which Landlord reasonably anticipates to be the Expansion Premises Commencement Date, it being acknowledged that Landlord estimates that the Expansion Premises Commencement Date will occur approximately fifteen (15) days after the date on which Partners vacates the Expansion Premises and delivers the Expansion Premises to Landlord.  As of the Expansion Premises Commencement Date, (i) the “Premises” shall be deemed to include both the Existing Premises and the Expansion Premises, (ii) the rentable area of the Premises shall be deemed to equal 46,729 rentable square feet, and (iii) Tenant’s Proportionate Fraction shall be increased from 44.78% to 59.47%.  Except as expressly provided herein, all terms and provisions of the Original Lease shall be applicable to Tenant’s leasing of the Expansion Premises.

 

3.                                      Delivery Condition of Expansion Premises.  Landlord shall deliver the Expansion Premises in its “as is” condition as of the Expansion Premises Commencement Date, without any obligation on the part of Landlord to perform any construction therein or to prepare the same for Tenant’s occupancy; provided, however, that Landlord agrees (i) to deliver in good working order those base building systems which exclusively serve the Expansion Premises, and (ii) to deliver the Expansion Premises in compliance with applicable law (except Landlord shall have no obligation to perform upgrades to bring ADA-noncompliant bathrooms into compliance).

 

4.                                      Delivery Condition of Existing Premises.  Tenant shall continue in possession of the Existing Premises in its “as is” condition as of the date of this Amendment, without any obligation on the part of Landlord to perform any construction therein or to prepare the same for Tenant’s occupancy.

 

5.                                      Second Amendment Allowance.

 

(i)                                     Subject to the terms of this Amendment, Tenant shall be entitled to receive from Landlord an allowance (the “Second Amendment Allowance”) up to and not to exceed $321,617.50 (i.e., calculated at the rate of $7.50 per rentable square foot of the Existing Premises, plus $5.00 per rentable square foot of the Expansion Premises) for tenant improvements within, at Tenant’s sole election, either the Existing Premises or the Expansion Premises (the “Second Amendment Improvements”).  Upon the request of Tenant, Landlord shall provide Tenant with one (1) initial fit plan as well as one (1) revision to the initial fit plan, all at Landlord’s sole cost and without resort to the Second Amendment Allowance; provided, however, that as of December 31, 2015, Landlord shall have no further obligation to provide the initial fit plan or to make any revisions thereto.  The Second Amendment Allowance shall be used to contribute toward the payment of documented, out-of-pocket, so-called “hard” construction costs incurred by Tenant in constructing the Second Amendment

 

2

 

Improvements (the “Second Amendment Work Cost”) consistent with the plans, drawings and specifications (“Second Amendment Plans”) which have been reviewed and approved by Landlord (such approval not to be unreasonably withheld or delayed) prior to the commencement of such Second Amendment Improvements.  Notwithstanding the foregoing, no more than ten percent (10%) of the Second Amendment Allowance (i.e., $32,161.75) shall be eligible for application to so-called “soft costs” incurred by Tenant in designing and constructing the Second Amendment Improvements.  Tenant shall provide Landlord with information as reasonably requested by Landlord to substantiate the complete Second Amendment Work Cost following acceptance of any bids for the Second Amendment Improvements in accordance with the Second Amendment Plans.  At the expiration or earlier termination of the Lease Term, Tenant shall, at Tenant’s sole cost and expense, remove and restore (a) any components of the Second Amendment Improvements for which Landlord requires restoration in writing at the time of Landlord’s approval of the Second Amendment Plans, and (b) any specialty alterations not typically performed under tenancies having general office use, as determined by Landlord in its reasonable discretion.

 

(ii)                                  Tenant shall notify Landlord of the parties which Tenant intends to use as architect, engineer and contractor for the Second Amendment Improvements, and such consultants shall be subject to Landlord’s prior written consent (not to be unreasonably withheld, conditioned or delayed).

 

(iii)                               Tenant shall obtain and furnish to Landlord true and complete copies of all necessary governmental permits and certificates as may be required (a) for the commencement and prosecution of the Second Amendment Improvements and (b) to evidence final approval thereof upon completion.  It shall be the responsibility of Tenant: (i) to submit, at its sole cost and expense, all Second Amendment Plans to any governmental authority requiring the same, and (ii) to secure and pay for all permits or governmental approvals necessary to construct the Second Amendment Improvements and to use and occupy the Premises (including, without limitation, any required certificate of occupancy).  Landlord shall not charge Tenant any oversight or supervisory fee with regard to Tenant’s initial construction of the Second Amendment Improvements.

 

(iv)                              Tenant shall construct the Second Amendment Improvements in accordance with the Second Amendment Plans, and any material deviations from the Second Amendment Plans shall require resubmission to Landlord, for Landlord’s prior approval, of detailed plans and drawings describing such material deviations.  Tenant shall construct and complete the Second Amendment Improvements in a good and workmanlike manner, using materials of first quality (using no less than building standard materials and finishes) and shall comply with the Landlord’s

 

3

 

construction standards, all applicable requirements of insurance bodies and with the Second Amendment Plans.

 

(v)                                 Tenant shall pay all debts incurred and shall satisfy or bond all liens of contractors, subcontractors, mechanics, laborers, and materialmen in respect to construction, alteration and repair in and on the Premises.  If any mechanic’s, laborer’s, or materialman’s lien shall at any time be filed against the Building (or any portion thereof) by reason of any act or omission of Tenant, Tenant shall cause the same to be discharged by payment, deposit, bond or order of a court of competent jurisdiction within twenty (20) days of written notice of Landlord.

 

(vi)                              The Second Amendment Allowance shall be payable by Landlord to Tenant not more than one (1) time per month on a progress payment basis.  In connection with each request for payment, Tenant shall submit to Landlord a detailed requisition request satisfactory to Landlord (each, a “Requisition Request”).  Each disbursement to Tenant shall be made within thirty (30) days after Tenant has delivered to Landlord evidence of the completion of the Second Amendment Improvements (or any portion thereof) pursuant to the Second Amendment Plans and a complete Requisition Request and shall be in an amount equal to the substantiated amount of the expense paid or incurred by Tenant with respect to the Second Amendment Work Cost.  Landlord shall not be obligated to pay any portion of the Second Amendment Allowance during such time that Tenant is in default of any of its obligations under the Lease.  In no event shall Landlord be responsible for any sums in excess of the Second Amendment Allowance, and as a result, after Landlord has disbursed the full amount of the Second Amendment Allowance, Tenant shall be financially responsible for all remaining construction expenses for its Second Amendment Improvements.  Each Requisition Request shall be accompanied by (a) reasonably detailed invoices and billing statements evidencing the completion of the work that is the subject of such Requisition Request, (b) sworn tenant’s and contractor’s statements in customary form in use by Chicago Title Insurance Company reflecting (i) the total cost of the Second Amendment Improvements, provided, however, that line items for work or materials not yet bid or let (e.g., furniture) shall reflect a projected amount and clearly reflect such line items as not yet let; (ii) the progress payments funded to date; (iii) the amount to be funded for the draw being requested; and (iv) the balance to be disbursed, (c) such contractor’s affidavits and partial or final lien waivers as Landlord shall require; (d) with respect to the final draw request, a certificate from Tenant’s architect stating that the Second Amendment Work has been completed in accordance with the Second Amendment Plans and applicable zoning, building, environmental and other laws and final lien waivers, and (e) any other commercially reasonable documentation that may be requested by Landlord.  Tenant

 

4

 

shall submit all Requisition Requests no sooner than the Expansion Premises Commencement Date and no later than the day that is six (6) months following the Expansion Premises Commencement Date, unless delayed by Acts of God (as defined in Section 14.5 of the 1996 Lease), and Landlord shall have no obligation to pay any monies with respect to the Second Amendment Improvements outside of such period.

 

(vii)                           Tenant no longer shall have the right to seek reimbursement from Landlord for Qualified Tenant Improvements.  Accordingly, Section 15.3 of the 1996 Lease is hereby made void and shall be of no further force and effect.

 

6.                                      Annual Fixed Rent.

 

(i)                                     Effective as of August 1, 2015, notwithstanding the Annual Fixed Rent chart set forth in Section 5(a) of the First Amendment, Annual Fixed Rent for the Existing Premises shall be payable in the manner set forth in Section 4 of the 1996 Lease, at the rates set forth below.

 

	
Period
    	
 
    	
Annual Fixed Rent
    	
 
    	
Monthly Installment
    	
 
    
	
August 1, 2015 – July 31, 2016
    	
 
    	
$
    	
1,073,264.50
    	
 
    	
$
    	
89,438.71
    	
 
    
	
August 1, 2016 – July 31, 2017
    	
 
    	
$
    	
1,102,823.26
    	
 
    	
$
    	
91,901.94
    	
 
    
	
August 1, 2017 – July 31, 2018
    	
 
    	
$
    	
1,133,085.80
    	
 
    	
$
    	
94,423.82
    	
 
    
	
August 1, 2018 – July 31, 2019
    	
 
    	
$
    	
1,164,404.01
    	
 
    	
$
    	
97,033.67
    	
 
    
	
August 1, 2019 – July 31, 2020
    	
 
    	
$
    	
1,196,426.00
    	
 
    	
$
    	
99,702.17
    	
 
    

 

(ii)                                  Effective as of the Expansion Premises Commencement Date, Annual Fixed Rent for the Expansion Premises shall be payable in the manner set forth in Section 4 of the 1996 Lease, at the rates set forth below.  For the avoidance of doubt, Landlord and Tenant acknowledge and agree that Tenant shall owe no Annual Fixed Rent in respect of the Expansion Premises for the period prior to the Expansion Premises Commencement Date.

 

	
Period*
    	
 
    	
Annual Fixed Rent
    	
 
    	
Monthly Installment
    	
 
    
	
August 1, 2015 – July 31, 2016
    	
 
    	
$
    	
351,970.00
    	
 
    	
$
    	
29,330.83
    	
 
    
	
August 1, 2016 – July 31, 2017
    	
 
    	
$
    	
361,663.60
    	
 
    	
$
    	
30,138.63
    	
 
    
	
August 1, 2017 – July 31, 2018
    	
 
    	
$
    	
371,588.00
    	
 
    	
$
    	
30,965.67
    	
 
    
	
August 1, 2018 – July 31, 2019
    	
 
    	
$
    	
381,858.60
    	
 
    	
$
    	
31,821.55
    	
 
    
	
August 1, 2019 – July 31, 2020
    	
 
    	
$
    	
392,360.00
    	
 
    	
$
    	
32,696.67
    	
 
    

 

5

 

* Notwithstanding the foregoing, provided that no default has occurred beyond applicable notice and cure periods under the Lease, Tenant shall not be obligated to make payments of Annual Fixed Rent in respect of the Expansion Premises for the period commencing on the Expansion Premises Commencement Date and ending on the earlier of (a) the day before the Town of Needham issues a temporary or permanent certificate of occupancy for the Expansion Premises, and (b) the one hundred twentieth (120th) day following the Expansion Premises Commencement Date.

 

7.                                      Additional Rent.  From the date of this Amendment through and including the Additional Term, Tenant shall continue to pay Additional Rent and all other charges due under the Lease in respect of the Existing Premises.  From and after the Expansion Premises Commencement Date, through and including the Additional Term, Tenant shall pay Additional Rent and all other charges due under the Lease in respect of the Existing Premises.  Landlord represents and warrants that the Expansion Premises will be submetered for electricity as of the Expansion Premises Commencement Date.

 

8.                                      Utilities.  For the period commencing on the date of this Amendment through and including the Additional Term, Tenant shall continue to pay all charges for Tenant’s utilities in respect of the Existing Premises in accordance with Section 7.1 of the 1996 Lease.  For the period commencing on the Expansion Premises Commencement Date through and including the Additional Term, Tenant shall pay all charges for Tenant’s utilities in respect of the Expansion Premises in accordance with Section 7.1 of the 1996 Lease.  HVAC shall be available in the Expansion Premises Monday through Friday from 7:30 a.m. to 6:30 p.m. and Saturdays from 9:00 a.m. to 3:00 p.m.

 

9.                                      HVAC Maintenance.  For the period commencing on the date of this Amendment through and including the Additional Term, Tenant shall continue to be solely responsible for the cost of maintenance, replacement and repair of those portions of the HVAC equipment and systems solely serving the Existing Premises, all in accordance with Section 13 of the First Amendment.  Within the period of sixty (60) days prior to the Expansion Premises Commencement Date, Landlord shall cause the HVAC equipment serving the Expansion Premises to be inspected by a properly qualified technical firm selected by Landlord in its reasonable discretion, which technical firm shall certify that such HVAC equipment is in good working condition. If such HVAC equipment is not then in good working condition, then Landlord shall cause such HVAC equipment to be placed in good working condition at Landlord’s expense prior to the Expansion Premises Commencement Date.  For the period commencing on the Expansion Premises Commencement Date through and including the Additional Term, Landlord shall have control of and shall maintain, repair and replace the HVAC equipment and systems serving the Expansion Premises, all in accordance with Section 13 of the First Amendment, it being acknowledged and agreed that the

 

6

 

HVAC equipment and systems serving the Expansion Premises are “Common HVAC” under Section 13 of the First Amendment.

 

10.                               Parking.  Effective as of the Expansion Premises Commencement Date, (i) thirteen (13) of the spaces which Tenant is entitled to use under Section 1.3 of the 1996 Lease, which thirteen (13) parking spaces are shown on Exhibit B attached hereto (the “Reserved Parking Spaces”), will be designated, marked and identified by Landlord as being reserved for the exclusive use of Tenant and its employees and invitees, it being acknowledged, however, that Landlord shall be under no obligation to enforce Tenant’s exclusive parking rights, and (ii) Tenant shall be entitled to use one hundred thirty-seven (137) unreserved parking spaces (the “Unreserved Parking Spaces”), subject to and in accordance with Section 1.3 of the 1996 Lease.  For the avoidance of doubt, Landlord and Tenant hereby acknowledge and agree that the Unreserved Parking Spaces shall be allocated as follows: 103 unreserved parking spaces on the “Building Parcel” (as designated on Exhibit B) and 34 unreserved parking spaces on the “Parking Parcel” (as designated on Exhibit B).

 

11.                               Extension Terms.  Tenant shall have the right to extend the Lease Term for two (2) periods of five (5) years each, subject to and in accordance with the terms and conditions of Section 8 of the First Amendment.  Accordingly, Section 8 of the First Amendment is hereby amended by (i) deleting the phrase “one extended term” and substituting therefor the phrase “two extended terms (the “Second Extension Term” and the “Third Extension Term”, respectively)”, and (ii) except for the instance of “Second Extension Term” in the first (1st) sentence of said Section 8 (which is modified by the foregoing clause (i)), deleting the phrase “Second Extension Term” in each instance and substituting therefor the phrase “Second Extension Term or Third Extension Term, as applicable”, it being acknowledged that (notwithstanding the foregoing deletion and substitution), during the Second Extension Term, Tenant shall have one (1) further option to extend the Lease Term for the Third Extension Term.

 

12.                               Insurance.  Effective as of the date of this Amendment, Section 6.1(g) of the First Amendment is hereby amended by deleting the phrase “the Extension Term” and substituting therefor the phrase “any extended term of this Lease”, it being agreed that Landlord shall have the right to increase insurance limits or require additional types of insurance coverage, all as more particularly provided in Section 6.1(g) of the First Amendment, effective as of the first day of the Additional Term, the Second Extension Term, the Third Extension Term or any other extended term of the Lease.

 

13.                               Exterior Signage.  Subject to Landlord’s reasonable approval as to size, design, location and method of installation, not to be unreasonably withheld, delayed or conditioned, and to applicable laws, Tenant shall have the right, prior to the first anniversary of the Expansion Premises Commencement Date, to install and thereafter maintain one sign on the exterior of the Building (the “Exterior

 

7

 

Building Signage”).  Tenant shall be responsible, at Tenant’s expense, for obtaining all permits related to the installation of Tenant’s Exterior Building Signage.  The provisions of this paragraph are personal to Celldex Therapeutics, Inc. or a successor entity under a “Merger” or as a result of a transfer to a parent or subsidiary of Tenant for which Landlord’s consent is not required, all as more particularly provided in Section 9.13(a) of the 1996 Lease (as amended and restated by Section 9(a) of the First Amendment) .  Notwithstanding anything herein to the contrary, if (i) Tenant defaults beyond applicable notice and cure periods under the Lease, or (ii) Tenant subleases more than forty percent (40%) of the then rentable area of the Premises, or (iii) the Lease expires or otherwise terminates, Tenant’s right to the Exterior Building Signage shall terminate, and Tenant shall remove the Exterior Building Signage and repair any damage caused by such removal, at Tenant’s sole cost, in a commercially reasonable manner that restores the portion of the Building that was subject to the Exterior Building Signage to substantially the condition that existed prior to the installation of the Exterior Building Signage.  If Tenant’s Exterior Building Signage requires municipal or other governmental approval, and such approval is denied, Landlord shall not be deemed to be in default hereunder and the Lease shall continue in full force and effect, it being agreed, however, that Landlord shall use reasonable efforts (at no cost or legal obligation to Landlord) to cooperate with Tenant in obtaining such approvals, including, without limitation, executing such documentation that is required of Landlord by such municipal or governmental authority in connection therewith.  If Tenant does not install Exterior Building Signage prior to the first anniversary of the Expansion Premises Commencement Date, then Tenant’s rights to install Exterior Building Signage shall terminate.  Landlord shall have the right to relocate the Exterior Building Signage on a temporary basis in connection with the maintenance and repair of the Building.

 

14.                               Right of First Refusal.  Commencing on the Expansion Premises Commencement Date, Tenant shall have a right of first refusal on certain space in the Building, as more particularly provided in Exhibit C attached hereto.

 

15.                               Roof Penetrations.  Subject to Landlord’s approval, which shall not be unreasonably withheld, conditioned or delayed, Tenant shall have the right to repair and service Tenant’s existing HVAC equipment on the roof of the Building and to replace such equipment in the same location and to add new equipment that is substantially similar in size and function, except as provided in the next succeeding sentence.  Tenant shall not install any new HVAC equipment on the lower, front, roof of the Building (commonly called the “view roof”) or make any new penetrations on that portion of the roof of the Building (collectively, “New Lower Roof Equipment and Penetrations”) without Landlord’s prior written consent to the location, design, materials and installation method thereof, which consent Landlord reserves the right to withhold for any reason in Landlord’s sole and absolute discretion.  In the event that Landlord approves any roof penetrations (whether New Lower Roof Penetration or any others), (i) Tenant shall be solely responsible for obtaining any and all permits and approvals required in connection

 

8

 

with installation of such penetrations and the ongoing maintenance thereof, and for any and all costs in connection with the permitting, fabrication, installation and maintenance of such penetrations, (ii) Tenant shall maintain all such penetrations in good condition at all times, and (iii) at the expiration or earlier termination of the Lease, Tenant shall remove all such penetrations, repair all damage caused by such removal, and restore the roof of the Building to its condition immediately prior to installation of all such penetrations.

 

16.                               Landlord’s Address for Notices and Payments.  Section 1.1 of the 1996 Lease is hereby amended by deleting the “Address of Landlord” set forth therein and substituting therefor “c/o Davis Management Company, LLC, 125 High Street, 21st Floor, Boston, Massachusetts 02110”.

 

C.                                    Broker.  Tenant hereby represents and warrants that it has not directly or indirectly dealt with any broker or other party entitled to a commission or fee by virtue of this Amendment other than Jones Lang LaSalle and The Garibaldi Group (collectively, the “Broker”) and agrees to indemnify, defend and hold Landlord harmless from any and all loss, cost, damage, claim or expense arising from any claims for commissions or fees by any third parties, other than the Broker, based on dealing with Tenant in connection with the Premises or this Amendment.

 

D.                                    Governing Law/Binding Effect.  The Lease and this Amendment and the rights and obligations of both parties thereunder and hereunder shall be governed by the laws of the Commonwealth of Massachusetts and shall be binding upon and inure to the benefit of the Landlord and Tenant and their respective legal representatives, successors and assigns.

 

E.                                     Entire Understanding.  This Amendment contains the entire understanding between the Landlord and Tenant and supersedes any prior understandings and agreements between them respecting the subject matter of this Amendment.  No modification of the Lease as amended by this Amendment shall be valid or effective unless in writing and signed by the party against whom the modification is to be enforced.

 

F.                                      General Provisions.  Except as specifically amended in this Amendment, the Original Lease is and shall remain in full force and effect and has not been amended, modified, terminated or assigned.  No portion of the Premises has been assigned, sublet or licensed for use by any other occupant.  In the event there is a contradiction between the Original Lease and this Amendment, this Amendment shall govern.  Tenant acknowledges that Landlord’s and Tenant’s lease covenants are independent and that Tenant has no claim of default, setoff, counterclaim or defenses and no claim of abatement, reduction, adjustments, or concessions with respect to rent and/or other charges under the Original Lease as of the date hereof, and to the extent any of the same exist, they are hereby waived in full.

 

[signatures on following page]

[remainder of this page intentionally left blank]

 

9

 

	
EXECUTED as a sealed instrument as of the date   first set forth above.
    
	
 
    	
 
    
	
LANDLORD:
    	
 
    
	
 
    	
 
    
	
DIV NEEDHAM 115 LLC, a Massachusetts limited   liability company
    
	
 
    	
 
    
	
By: Fourth Avenue Ventures Limited Partnership,   its manager
    
	
 
    	
 
    
	
By: Cendav Investment Corp., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jonathan Davis
    	
 
    
	
 
    	
Name:   Jonathan Davis
    	
 
    
	
 
    	
Title:   President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    
	
 
    	
 
    
	
CELLDEX   THERAPEUTICS, INC., a Delaware corporation
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Avery W. Catlin
    	
 
    
	
 
    	
Name:   Avery W. Catlin
    	
 
    
	
 
    	
Title:   SVP & CFO
    	
 
    
					

 

 

SECRETARY’S CERTIFICATE

 

I, Anthony S. Marucci, President & CEO of CELLDEX THERAPEUTICS, INC., a Delaware corporation (the “Company”), hereby certify that by Board Meeting on September 9, 2015, approval was given for the Company, as tenant, to enter into a Second Amendment to Lease with DIV NEEDHAM 115 LLC, as landlord, with respect to the Company’s lease in the building located at, known as and numbered 115-119 Fourth Avenue, Needham, Massachusetts, a copy of which Second Amendment to Lease is attached hereto and made a part hereof.

 

I further certify that Avery W. Catlin, as SVP & CFO of the Company has authority to execute and deliver to the landlord said Second Amendment to Lease on behalf of the Corporation.

 

Witness my hand and seal of the Corporation this 30th day of October, 2015.

 

	
 
    	
 
    
	
 
    	
/s/   Anthony S. Marucci
    
	
 
    	
Name:   Anthony S. Marucci
    
	
 
    	
Title:   President & CFO
    

 

 

EXHIBIT A

 

Expansion Premises

 

 

 

EXHIBIT B

 

Parking Spaces

 

 

 

EXHIBIT C

 

Right of First Refusal

 

Tenant shall have an ongoing right of first refusal (the “Right of First Refusal”) to lease certain ROFR Space (hereinafter defined), subject to the terms and conditions of this Exhibit C and the existing rights of any other tenants leasing space at the Building as of the date of this Amendment.

 

1.                                      Notice Of Availability.  Commencing on the Expansion Premises Commencement Date and continuing until July 31, 2018 (the “ROFR Period”), at such time as Landlord shall receive a bona fide written offer which Landlord is prepared to accept (a “Bona Fide Offer”) from a prospective third-party tenant to lease any space in the Building which is contiguous to the then Premises (such space, the “ROFR Space”), Landlord shall give Tenant written notice thereof (the “ROFR Notice”).  The ROFR Notice shall set out the terms and conditions of the Bona Fide Offer in respect of the ROFR Space.  Tenant shall have no Right of First Refusal during the Second Extension Term or the Third Extension Term, neither of which Extension Term shall constitute a portion of the ROFR Period.

 

2.                                      Conditions to Exercise.  In addition to any other terms or conditions set forth herein, Tenant’s exercise of its Right of First Refusal is conditioned upon Tenant’s compliance with the following requirements:

 

(a)                                 Tenant delivers to Landlord written notice exercising its right to lease the ROFR Space on the terms of the Bona Fide Offer within five (5) days after Tenant’s receipt of the ROFR Notice, it being agreed and acknowledged by the parties hereto that in the event of any failure by Tenant to timely exercise its right to lease the ROFR Space, Landlord shall have a period of twelve (12) months after delivery of the ROFR Notice within which to fully execute and deliver a lease with the tenant which submitted the Bona Fide Offer on substantially the terms and conditions set forth in the Bona Fide Offer, failing which the Right of First Refusal shall renew and Landlord shall again notify Tenant of any Bona Fide Offer received during the ROFR Period.

 

(b)                                 Tenant is not in default under the Lease beyond all applicable notice and cure periods at the time Landlord gives the ROFR Notice and at the commencement of the lease of ROFR Space by Tenant; and

 

(c)                                  Tenant must lease all of the ROFR Space on the terms and conditions of the Bona Fide Offer

 

(d)                                 On the date of the Bona Fide Offer, Celldex Therapeutics, Inc. must be occupying one hundred percent (100%) of the then Premises demised under the Lease, without any portion of the then Premises subject to a sublease or other occupancy agreement.

 

3.                                      Terms.  The following terms shall apply to and govern the lease of the ROFR Space:

 

 

(a)                                 For any Bona Fide Offer received during the period of twenty-four (24) months immediately following the Expansion Premises Commencement Date, Annual Fixed Rent, tenant improvement allowance and tenant inducements shall be equitably and proportionately adjusted to be consistent with the terms of this Amendment (it being agreed that, for purposes of such equable and proportionate adjustment, the applicable tenant improvement allowance shall be $5.00 per rentable square foot of the ROFR Space, consistent with the portion of the Second Amendment Allowance granted by Landlord in respect of the Expansion Premises), and the term of Tenant’s tenancy of the ROFR Space shall begin on the date proposed for occupancy in the Bona Fide Offer and shall expire coterminous with the expiration or earlier termination of the Lease Term.

 

(b)                                 For any Bona Fide Offer received after the period of twenty-four (24) months immediately following the Expansion Premises Commencement Date, Annual Fixed Rent, tenant improvement allowance, tenant inducements, and term commencement and expiration shall be as set forth in the Bona Fide Offer.

 

(c)                                  The other terms and conditions, including, without limitation, the payment by Tenant of Additional Rent and other charges, shall be the same as set forth in the Lease with respect to the balance of the Premises.

 

4.                                      Documentation.  Within fifteen (15) days after receipt from Landlord, Tenant shall execute and deliver to Landlord those instruments Landlord reasonably requests to evidence any lease of ROFR Space under this Exhibit C.

 

5.                                      Termination.  Notwithstanding anything to the contrary contained herein, any assignment or subletting by Tenant pursuant to the provisions of the Lease shall terminate the Right of First Refusal and the same shall be null and void and without recourse to either party hereto.  In addition, the Right of First Refusal granted hereby shall expire by its own terms at such time as less than twenty-four (24) months remain in the Additional Term from the date on which the term of Tenant’s tenancy of the ROFR Space would have commenced in accordance with the provisions of this Exhibit C.

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