Document:

EXHIBIT 10.13

 

COMMERCIAL LEASE 
 DATED AS OF 
 DECEMBER 10, 2010 
 BETWEEN 
 NIVEK INVESTMENTS I, LLC 
 AND
 KARYOPHARM THERAPEUTICS, INC.

 

SUMMARY OF BASIC TERMS

 

The following is a summary of certain basic terms of this Lease which is intended for the convenience and reference of the parties.  In addition, some of the following items may be incorporated into the Lease by reference to the “Summary of Basic Terms”.

 

	
LANDLORD:
    	
Nivek Investments I, LLC
    
	
 
    	
c/o Stonegate Group, LLC
    
	
 
    	
83 Speen Street
    
	
 
    	
Natick, Massachusetts 01760
    
	
 
    	
 
    
	
TENANT:
    	
Karyopharm Therapeutics, Inc.
    
	
 
    	
2-4 Mercer Road
    
	
 
    	
Natick, Massachusetts 01760
    
	
 
    	
 
    
	
PREMISES:
    	
Approximately 4,094 square feet of rentable   area in the building (the “Building”)   situated at the real estate (the “Land”) known   as 2-4 Mercer Road, Natick, Massachusetts, which Building consists of   approximately 17,284 square feet of rentable area in the Building   (hereinafter the Land and the Building are collectively referred to as the “Property”)
    
	
 
    	
 
    
	
TERM:
    	
Two (2) Years, plus such additional   number of days as there are remaining in the month of the Commencement Date,   if said Commencement Date is on other than the first day of the month (said   period sometimes being referred to as the “Original   Term”), subject to the exercise of the Extension Option as   hereinafter defined
    
	
 
    	
 
    
	
EXTENSION OPTION:
    	
One (1) Two-year option
    
	
 
    	
 
    
	
COMMENCEMENT DATE:
    	
The later of January 1, 2011 or two   business days following the date on which Landlord’s Work is complete
    

 

 

	
RENT COMMENCEMENT DATE:
    	
The later of January 1, 2011 or two   business days following the date on which Landlord’s Work is complete
    
	
 
    	
 
    
	
TERMINATION DATE:
    	
11:59 p.m. on the day before that date   which is two years after the Commencement Date, subject to exercise of the   Extension Option
    
	
 
    	
 
    
	
BASE RENT:
    	
Year 1 of the Lease (the period commencing   with the Commencement Date and ending on the first anniversary of the   Commencement Date): $51,175.00 per annum payable in monthly installments of   $4,264.58, pro-rated for any partial month or year;
    
	
 
    	
 
    
	
 
    	
Year 2 of the Lease (i.e. the period   commencing with the day following Year 1 to the second anniversary of the   Commencement Date); $53,222.00 per annum payable in monthly installments of   $4,435.17;
    
	
 
    	
 
    
	
 
    	
Year 3 of the Lease, if Extension Option is   exercised (i.e. the period commencing with the day following Year 2 to the   third anniversary of the Commencement Date): $53,222.00 per annum payable in   monthly installments of $4,435.17;
    
	
 
    	
 
    
	
 
    	
Year 4 of the Lease, if Extension Option is   exercised (i.e. the period commencing with the day following Year 3 to the   fourth anniversary of the Commencement Date): $55,269.00 per annum payable in   monthly installments of $4,605.75.
    
	
 
    	
 
    
	
ADDITIONAL RENT:
    	
See Section 5(b)
    
	
 
    	
 
    
	
TENANT’S PROPORTIONATE SHARE:
    	
23.69%. Tenant’s Proportionate Share is   computed on the basis of the Premises containing approximately 4,094 square   feet of rentable area and the building containing a total of 17,284 square   feet of rentable area.
    
	
 
    	
 
    
	
TENANT’S PARKING SPACES:
    	
Non-exclusive right to twelve (12) parking   spaces
    
	
 
    	
 
    
	
SECURITY DEPOSIT:
    	
$30,000.00
    
	
 
    	
 
    
	
PERMITTED USE:
    	
Administrative and general office space use
    
	
 
    	
 
    
	
BROKER:
    	
None
    

 

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GUARANTOR:
    	
SBH Sciences, Inc.
    

 

1.                                      PARTIES.  In consideration of the covenants contained herein, the Landlord, which expression shall include its successors and assigns where the context so admits, does hereby lease to Tenant, which expression shall include its successors and assigns where the context so admits, which hereby leases from the Landlord, the Premises described below.

 

2.                                      PREMISES.  The Tenant hereby leases the Premises together with the right to use in common, with others entitled thereto, the hallways and corridors, entranceways, sidewalks, concourses, approaches, parking areas, to the extent of the permitted number of Tenant’s Parking Spaces, and area ways necessary for access to the Premises.  The Premises are identified on Exhibit A attached hereto; however, nothing in Exhibit A shall be treated as a representation that the Premises shall be precisely the dimensions or shapes as shown, it being the intention of the parties only to show diagrammatically, rather than precisely, on Exhibit A, the layout of the Premises.  Neither the Base Rent nor Tenant’s Proportionate Share shall increase or decrease in the event the actual square footage of the Premises or the Building is less than or greater than the square footage set forth on the Summary of Basic Terms.  In no event may the Tenant’s employees or invitees occupy more than the number of parking spaces indicated in the Summary of Basic Terms.

 

3.                                      TERM.  The term of this Lease shall commence on the Commencement Date and end on the Termination Date, subject to any Extension Option referenced herein.

 

4.                                      DELIVERY OF PREMISES.  Except for the work (“Landlord’s Work”) as set forth in Exhibit B, if any, attached hereto which shall be completed as set forth on Exhibit B, Landlord shall deliver the Premises to the Tenant broom clean, but otherwise “AS IS” as to condition and layout.  If no Exhibit B is attached hereto, then the Premises are being delivered “AS IS” with no work to be performed by Landlord.  The Tenant acknowledges that it has leased the Premises after a full and complete examination of the same, and by its execution and delivery of this Agreement, Tenant hereby acknowledges that, except as set forth herein, neither Landlord, nor Landlord’s agents, has made any representation or promises with respect to the Premises or the uses which are permitted by applicable laws and ordinances.

 

In the event Tenant requires work in excess of Landlord’s Work identified in Exhibit B, Tenant agrees, in such event, to pay to Landlord all of Landlord’s actual costs and expenses attributable thereto, which sums shall be deemed Additional Rent and shall be paid to Landlord within thirty (30) days after Landlord transmits to Tenant itemized statements therefore and for nonpayment thereof, Landlord shall have all the rights and remedies for nonpayment of rent.

 

Occupying all or any portion of the Premises by Tenant shall be conclusive that the Premises are in satisfactory condition and acceptable to Tenant subject to deficiencies listed in writing by Tenant to Landlord within thirty (30) days after Tenant’s occupancy and to latent defects.

 

5.                                      (a)                                 BASE RENT.  The Tenant shall pay to the Landlord the Base Rent set forth on the Summary of Basic Terms and all Additional Rent and other charges (collectively with the Base Rent the “Rent”), without prior notice or demand and without set-off or deduction of any kind whatsoever.  The Base Rent shall be payable by Tenant to Landlord on the first day of each 

 

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calendar month included in this Term, commencing on the Rent Commencement Date, with any portion of a calendar month included at the beginning or end of the Term and shall be payable at the rate of one thirtieth (1/30) of such monthly installment.  Base Rent shall be paid as follows, with the first month’s Rent paid upon execution of this Lease:

 

(b)                                 ADDITIONAL RENT.  In addition to Base Rent, the Tenant shall pay, as “Additional Rent”, with each installment of Base Rent, the Tenant’s Proportionate Share of Operating Costs for each Lease Year or portion thereof during the Term hereof.  The Tenant shall pay to the Landlord monthly installments on account of Tenant’s Proportionate Share of projected Operating Costs for the Lease Year, reasonably calculated by the Landlord on the basis of the most recent Operating Costs data for actual Operating Costs for such Lease Year, pro-rated for any partial month.  If the total of such monthly installments in any Lease Year is greater than the actual Operating Costs for such Lease Year, the Tenant shall be entitled to a credit against the Tenant’s Base Rent obligations hereunder in the amount of such difference; provided, however, that in the event of an overpayment by Tenant during the last Lease Year, Landlord shall reimburse Tenant within sixty (60) days following the end of the Lease Year.  If the total of such monthly installments is less than the actual Operating Costs for such Lease Year, the Tenant shall pay to the Landlord the amount of such difference within thirty (30) days of receipt of billing therefor; provided, however, that in the event of an underpayment by Tenant during the last Lease Year, Landlord shall bill Tenant therefore within sixty (60) days following the end of the Lease Year.  Landlord shall provide Tenant with such back-up documents as it shall reasonably request, but Tenant shall not delay payment on account of any request for such documentation or the receipt thereof.

 

(c)                                  For the purpose of this Lease, “Lease Year” shall mean any fiscal year from January 1 to December 31, except that the first Lease Year during the term of this Lease shall commence on the Commencement Date and the last Lease Year during the term of this Lease shall end on the date this Lease terminates (each of such first and last Lease Years are referred to in the immediately preceding Section (b) as a “Partial Lease Year”).

 

(d)                                 For purposes of this Lease, the term “Operating Costs” shall include the following expenses to the extent reasonably incurred (i) insurance premiums for the Property, including without limitation, premiums for property and casualty insurance and public liability insurance, each with such endorsements, including a loss of rent endorsement, as the Landlord deems reasonably necessary; (ii) costs for electricity, gas and all other utilities required in the operation and maintenance of the Property (except in the event electricity and/or gas is separately metered, in which case they shall be payable directly by Tenant or other tenants); (iii) water and sewer use charges for the Property; (iv) real estate taxes and all other general and special taxes, including assessments for local improvements and other governmental levies, betterments and other charges which may be lawfully charged, assessed or imposed upon the Building and the Property which are paid or payable for a tax year wholly or partially within the term of this Lease, equitably adjusted in the event the term of this Lease does not coincide with the tax year (collectively the “Taxes”).  If some method or type of taxation or assessment shall replace in whole or in part, the current method of assessment of Taxes, or the type thereof, Tenant agrees that Tenant shall pay Tenant’s Proportionate Share of the same; (v) costs of snow-plowing and removal and landscaping; (v) amounts paid to independent contractors for services, materials and supplies furnished for or in connection with the operation of the Property except areas which are 

 

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for the exclusive use of individual tenants or which individual tenants are required to maintain; (vi) costs and expenses of services, materials and supplies furnished or used in connection with the operation, maintenance, cleaning and protection of the Property; and the costs and expenses incurred in the maintenance, repair or replacement of the mechanical, electrical, plumbing and other building systems, other than the HVAC system, and the other equipment serving or used in connection with or relating to the Property and not serving exclusively the Premises or other rentable space, with all capital expenditures shall be amortized and invoiced based on the useful life of the improvement; (viii) amounts paid to supervisors, janitors, carpenters, mechanics, electricians, and other personnel (including wages, salaries and other compensation, and payroll, social security, disability benefits and the like) and managing agents and for legal, accounting and other professional fees relating to the to the extent such amounts relate to the operation, management, repair, maintenance, cleaning and/or protection of the Property, but excluding such fees paid in connection with negotiations for or enforcement of leases; and (ix) all other expenses incurred in connection with or relating to the operation, management, repair, maintenance, cleaning and protection of the Property, which types of expenses shall be similar to those of similar projects in the Greater Boston market.  Operating Costs shall be computed on an accrual basis and shall be determined in accordance with generally accepted accounting principles consistently applied.  They may be incurred directly or by way of reimbursement, and shall include taxes applicable thereto.  There shall be excluded from Operating Costs any and all costs and expenses: (i) incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building; (ii) debt service and depreciation; (iii) expenses for which the Landlord, by the terms of this Lease or any other lease, makes a separate charge; (iv) leasing fees or commissions, attorneys’ fees, and other costs and expenses incurred in connection with negotiations or disputes with prospective tenants of the Building or litigation to collect rent from other tenants of the Building; (v) cost of repairs or replacements incurred by reason of fire or other casualty or condemnation for which Landlord is reimbursed by insurance; (vi) costs and expenses incurred by the Landlord for the Landlord’s Work and any other work which by the terms of this Lease the Landlord has expressly agreed to pay; and (vii) costs and expenses for the maintenance, repair and/or replacement of the roof, the structural walls and slab of the Building and HVAC equipment serving the Premises and Building.

 

Upon written request by Tenant, the Landlord shall deliver to Tenant all information, tax bills and other details reasonably necessary to verify the Operating Costs.  Upon not less than thirty (30) days prior written notice to Landlord and not more frequently than one (1) time each calendar year, Tenant shall have the right to inspect and/or audit the Landlord’s books at the Landlord’s place of business.  There shall be no right to such information unless the request is made within one (1) year of the last day of the year in question.  If the results of Tenant’s review show an overcharge to Tenant, then Landlord shall credit or refund to Tenant such overcharge within sixty (60) days of notification by Tenant of the overcharge.

 

(e)                                  NET LEASE.  This Lease shall be deemed and construed to be a triple net lease and, except as herein otherwise expressly provided, the Landlord shall receive the Base Rent, and Additional Rent and all other payments hereunder to be made by the Tenant free from any charges, assessments, impositions, expenses, or deductions of any and every kind or nature whatsoever, except unless otherwise herein expressly provided.

 

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6.                                      SECURITY DEPOSIT/FINANCIALS.  The Landlord shall hold the Security Deposit throughout the term of this Lease, as security for the performance by the Tenant of all obligations on the part of the Tenant to be kept and performed.  The Landlord shall have the right from time to time, without prejudice to any other remedy the Landlord may have on account thereof, to apply such Security Deposit, or any part thereof, to the Landlord’s damages arising from any default on the part of the Tenant beyond applicable notice and cure periods.  Upon such application the amount so applied shall be paid by Tenant to Landlord upon demand in order that the Security Deposit may at all times be equal to the amount set forth in the Summary of Basic Terms.  The Tenant not then being in default beyond applicable notice and cure periods, the Landlord shall return the Security Deposit, or so much thereof as shall not have theretofore been applied in accordance with the terms of this Section 6, to the Tenant on the expiration or earlier termination of the Lease Term and surrender of possession of the Premises by the Tenant to the Landlord at such time.  The Landlord shall, unless otherwise required by law, have no obligation to pay interest on the Security Deposit and shall have the right to commingle the same with the Landlord’s other funds.  If the Landlord conveys the Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by the Landlord to the Landlord’s grantee, and the Tenant agrees to look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Section 6 and the return thereof in accordance herewith.  If Tenant shall default in the payment of Rent beyond applicable cure periods, then, upon Landlord’s request, Tenant shall furnish to Landlord, at Tenant’s sole cost and expense, the most recent annual financial statements of Tenant (audited if audited statements have been recently prepared on behalf of Tenant) and management prepared year to date financials, certified as being true, accurate and correct by the President or the Treasurer of the Tenant.

 

Notwithstanding anything to the contrary contained herein, provided that Tenant shall not then be in default under this Lease beyond applicable notice and cure periods and provided further that Tenant shall have timely made all payments of Rent, the Security Deposit shall be reduced to $9,211.50 on the date which is one year after the Commencement Date, and Landlord shall return the balance of the Security Deposit to Tenant.

 

7.                                      UTILITIES.  The Tenant shall pay for all electricity, gas and other utilities required or used in the operation or maintenance of the Premises (whether or not separately metered).  Landlord shall in no event be liable for failure to perform any of its obligations, including the foregoing, when prevented from doing so due to any accident, to the making of repairs, alterations or improvements, to labor difficulties, to trouble in obtaining fuel, electricity, service or supplies from the sources from which they are usually obtained for the Building, or to any other cause beyond the Landlord’s control; provided, however, that Rent shall abate during any period in which the Premises cannot be used for the Permitted Use as a result of an interruption in utility service caused by Landlord’s negligence.

 

8.                                      USE OF THE PREMISES.  The Tenant shall use the Premises only for the Permitted Use and for no other uses.  Tenant will not place on the exterior of exterior walls (including both interior and exterior surfaces of windows and doors) or on any part of the Building outside the Premises or otherwise on any portion of the Property, any signs, symbols, advertisement or the like visible to public view outside of the Premises without the prior consent of Landlord, not to 

 

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be unreasonably withheld, subject in all instances to applicable municipal laws and ordinances.  Without limitations, lettering on windows is expressly prohibited.

 

9.                                      COMPLIANCE WITH LAWS.  The Tenant acknowledges that no trade or occupation shall be conducted in the Premises, or use made thereof, which will be unlawful, noisy or offensive, or contrary to any law or any municipal bylaw or ordinance in force in the city or town in which the Premises are situated.  The Tenant, at its expense, shall materially comply with all rules, ordinances, orders, regulations and requirements of all governmental authorities and any Board of Fire Underwriters, or any other body hereafter constituted exercising similar functions and governing insurance rating bureaus; and shall not do or permit anything to be done in or upon the Premises, or bring or keep anything therein, except as now or hereafter permitted by any governmental authority, Board of Fire Underwriters or any other similar body having jurisdiction, or insurance rating bureau; and shall keep the Premises equipped with all safety appliances or equipment required by any governmental authority, Board of Fire Underwriters or other similar body or governing insurance rating bureau; and shall procure all licenses, permits or other approvals required because of such use (and equip the Premises with all safety appliances or equipment required thereby), it being understood that the foregoing provisions shall not be construed to broaden in any way the Permitted Use of the Premises.  Additionally, the Tenant shall materially comply and cause all employees to materially comply with all reasonable rules and regulations from time to time established by the Landlord by suitable notice.  Landlord shall not, however, be responsible for non-compliance with any such rules and regulations by any other tenant or occupant of the Building, but shall enforce all rules and regulations in a uniform manner.  If the Tenant receives notice of any violation of law, ordinance, order, permit conditions or regulation applicable to the Premises or the use and maintenance thereof, it shall give prompt written notice thereof to the Landlord.  Tenant shall have the right to contest the assertion by any governmental authority of the violation of any law, statute, code, ordinance, rule or regulation.  Tenant hereby covenants and agrees to indemnify, defend, and hold Landlord harmless from and against any loss or damage, including reasonable counsel fees and related costs, to the extent resulting from any violation of any law, statute, code, ordinance, rule or regulation by Tenant or its agents or representatives or persons on the Premises at the invitation of the Tenant during the Term.  Notwithstanding any provision of this Lease to the contrary, this Lease is not conditioned or contingent on the availability of any applicable permits, licenses, variances or other approvals of any kind.

 

10.                               FIRE INSURANCE.  The Tenant shall not permit any use of the Premises which will make voidable any insurance on the Property of which the Premises are a part, or on the contents of said Property or which shall be contrary to any law or regulation from time to time established by the New England Fire Insurance Rating Association, or any similar body succeeding to its powers.  The Tenant shall, on demand, reimburse the Landlord, and all other tenants, for all extra insurance premiums caused by the Tenant’s use of the Premises.  In the event that the Tenant’s use of the Premises requires modifications to the fire, life and/or safety equipment servicing the Building, the Tenant shall pay the costs of the same.

 

11.                               MAINTENANCE OF PREMISES.

 

(a)                                 The Tenant agrees at its sole expense, to maintain in good order, condition and repair, the Premises, as improved by the Tenant, including the maintenance, repair and 

 

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replacement of all mechanical, electrical, plumbing and other building systems serving exclusively the Premises, in good order, condition and repair, reasonable wear and tear, damage by fire and other casualty and condemnation only excepted.  Additionally, Tenant shall, whenever necessary, replace plate glass and other glass therein, acknowledging that the glass is now whole.  The Tenant shall not permit the Premises to be overloaded, damaged, stripped, or defaced, nor suffer any waste.  Tenant will maintain an adequate and systematic program to ensure that the Premises are maintained free of rodent and vermin infestation.  Tenant shall cause garbage and refuse to be removed from the Premises at Tenant’s sole expense.

 

(b)                                 The Landlord agrees to maintain the foundation, roof and other structural portions of the Building of which the Premises are a part and the plumbing and electrical systems serving the Building (exclusive of those systems serving exclusively the Premises) and the HVAC system servicing the Premises and Building in good order, condition and repair, reasonable wear and tear, damage by fire and other casualty only excepted, unless such maintenance is required as a result of any act, omission or neglect of the Tenant or those for whose conduct the Tenant is legally responsible.  The costs and expense of all such maintenance shall be included in Operating Costs, except as a result of any act, omission or negligence of the Tenant, for which Tenant shall be responsible, and fire or other casualty, to the extent such loss is covered by insurance.

 

(c)                                  Landlord shall maintain the common areas of the Building and Property in good condition and shall arrange for snow-plowing and removal, for landscape maintenance of the Property, and pest extermination, all of which such expenses shall be treated as Operating Costs.  Additionally, the Landlord shall be solely responsible for the maintenance, repair and/or replacement of the roof, structural walls and slab of the Building, and the HVAC system servicing the Premises and Building, all at Landlord’s sole cost and expense.

 

(d)                                 Tenant acknowledges that, in all events, Tenant is responsible for providing security to the Premises and its own personnel.

 

12.                               ACCEPTANCE ALTERATIONS - ADDITIONS.

 

(a)                                 Except for the Landlord’s Work, if any, the Tenant accepts the Premises “As Is”.  The Tenant shall not make structural alterations or additions to the Premises, including, without limitation, roof cuts, punctures and penetrations of any kind, but may make non-structural alterations, provided that, in each instance where the proposed alterations are estimated to cost in excess of $10,000.00 in the aggregate, the Landlord consents thereto in writing, which consent shall not be unreasonably withheld.  Tenant shall not be required to obtain the Landlord’s consent for non-structural alterations which are estimated to cost less than $10,000.00 in the aggregate.  All such allowed alterations, shall be at Tenant’s expense and shall be of a quality at least equal to the present construction.  Tenant shall not permit any mechanics’ liens, or similar liens, to remain upon the Premises for labor and material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed at the direction of Tenant and shall cause any such lien to be released of record forthwith without cost to Landlord nor shall any improvements be subject to any security interest or lien of any kind.

 

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(b)                                 Tenant shall construct any permitted leasehold improvements to the Premises at Tenant’s sole cost and expense, in accordance with the provisions of this Section.  Once installed, all such leasehold improvements shall be part of the Premises and shall be the sole property of Landlord, excluding moveable or semi-moveable (i) trade fixtures and (ii) equipment and other personal property which shall remain the property of the Tenant.

 

(c)                                  All leasehold improvements constructed by Tenant within the Premises which require Landlord’s consent shall be done in accordance with plans and specifications first approved by Landlord, which approval shall not be unreasonably withheld.  Tenant agrees that Tenant’s construction shall be built in accordance with such approved plans and specifications and agrees to obtain from its architect certificates from time to time that such final plans and specifications meet all federal, state and local governmental requirements, including, without limitation, all applicable zoning laws, building codes, environmental codes, rules, ordinances or regulations, and any applicable laws and regulations regarding accommodations for handicapped persons.  Landlord shall not be deemed unreasonable for withholding approval of any improvements, alterations or additions which (i) adversely affect any structural, mechanical, plumbing, HVAC, electrical or exterior elements of the Building, or (ii) will require unusual expense to readapt the Premises to the condition of the Premises immediately before the proposed improvements on expiration or earlier termination of the Lease or (iii) will increase the cost of insurance or taxes on the Building or the Premises, unless Tenant agrees in writing to pay all such costs.  Tenant shall provide Landlord with a full set of as-built plans for the Premises so improved upon completion of such improvements.

 

(d)                                 All construction work in the Premises shall be done in a good and workmanlike manner and in compliance with the Lease, all applicable laws and ordinances, regulations and orders of governmental authority and insurers of the Building or the Premises.  Tenant further covenants that it shall not employ or permit the use of any contractors or laborers or otherwise take any action in connection with any work to the Premises which might in any way result in a labor dispute or disharmony with any personnel providing services at the Building.  Before Tenant begins any work, it shall secure all licenses and permits necessary therefor and cause each contractor to carry (1) worker’s compensation insurance in statutory amounts covering all the contractors and subcontractors employees, and (2) commercial general liability insurance with such limits as Landlord may reasonably require, but in no event less than $2,000,000, with property damage insurance with limits of not less than $2,000,000 (all such insurance to be written in companies approved by Landlord and insuring Landlord and Tenant as well as the contractors), and to deliver to Landlord certificates of all such insurance.  Tenant shall indemnify Landlord and hold it harmless from and against any cost, claim, or liability arising from any work done by or at the direction of Tenant.  All work shall be done so as to minimize interference with other tenants and with Landlord’s operation of the Building or other construction work being done by Landlord.  Without limiting any other provision of this Lease in performing any alterations or improvements to the Premises permitted by the terms of this Lease, Tenant shall be obligated at its sole cost and expense to perform any and all such alterations and improvements in compliance with the Americans with Disabilities Act (42 U.S.C. Section 12101 et seq.) and/or the Massachusetts architectural barriers laws and/or all similar state and municipal laws, and/or any regulations promulgated pursuant thereto, effective from time to time during the term of this Lease, and any period of holding over by Tenant (“ADA Requirements”), and Tenant shall be responsible at its sole cost and expense to make any further alterations or 

 

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improvements to the Premises or Building required by the ADA Requirements as a result of the alterations or improvements to the Premises initially sought to be made by Tenant.  Any additional alterations or improvements made to effect compliance with the ADA Requirements shall likewise be made in accordance with the procedures and requirements established by this Section.  Notwithstanding the foregoing, Landlord shall be responsible, at Landlord’s sole cost and expense, for any improvements or alterations necessary to put or maintain the Premises or the Building in compliance with the ADA Requirements other than as the result of Tenant alterations or improvements.

 

13.                               ASSIGNMENT - SUBLEASING.  The Tenant shall not assign or sublet or otherwise transfer, voluntarily or involuntarily, the whole or any part of the Premises or this Lease, without the consent of the Landlord, which consent shall not be unreasonably withheld or delayed, provided the Tenant shall give Landlord written notice of the terms of the assignment, sublease or transfer and that the proposed assignee, sublessee or transferree is of good reputation and financial condition and its proposed use is permitted by all applicable by-laws and regulations, such proposed use is substantially identical to the Permitted Use and do not involve the handling, storage, or generation of Hazardous Substances, excluding from the foregoing nominal amounts of Hazardous Substances used in cleaning and provided further that Tenant shall pay all reasonable legal and other fees incurred by Landlord in connection with reviewing and approving any such assignment, sublease or transfer.  Notwithstanding such consent, Tenant shall remain fully liable to Landlord for the payment of all Rent and for the full performance of the covenants and conditions of this Lease.  It shall also be a condition of the validity of the assignment that the assignee agree directly with Landlord, in form satisfactory to Landlord, to be bound by all Tenant obligations under this Lease.  The acceptance by the Landlord of the payment of Rent shall not constitute the consent by the Landlord to any such assignment, sublease or transfer nor shall the same constitute a waiver of any right or remedy of the Landlord.  Without limitation of the rights of Landlord hereunder in respect thereto, if there is any assignment of this Lease by Tenant for consideration or a subletting of the whole of the Premises by Tenant at a rent which exceeds the rent payable hereunder by Tenant, or if there is a subletting of a portion of the Premises by Tenant at a rent in excess of the subleased portion’s pro rata share of the rent payable hereunder by Tenant, then Tenant shall pay to Landlord, as additional rent, forthwith upon Tenant’s receipt of the consideration (or the cash equivalent thereof) therefor, in the case of an assignment, and/or in the case of a subletting, One Hundred (100%) percent of such excess rent.  For the purposes of this Section 13, the term “rent” shall mean all Base Rent, Additional Rent or other payments and/or consideration payable by one party to the other for the use and occupancy of all or a portion of the Premises.

 

Notwithstanding anything to the contrary herein contained, Tenant shall have the right, without obtaining Landlord’s consent or providing any excess rent to Landlord, to assign, sublet or transfer all or any part of the Premises or this Lease to (a) an Affiliated Entity (hereinafter defined) so long as such entity remains in such relationship to Tenant, and (b) a Successor, provided that prior to or simultaneously with any such transfer, such Affiliated Entity or Successor, as the case may be, agrees directly with Landlord, in form satisfactory to Landlord, to be bound by all Tenant obligations under this Lease.  For the purposes hereof, an “Affiliated Entity” shall be defined as any entity which is controlled by, is under common control with, or which controls Tenant.  For the purposes hereof, a “Successor” shall be defined as any entity into or with which Tenant is merged or with which Tenant is consolidated or which acquires all

 

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or substantially all of Tenant’s stock or assets, provided that the surviving entity shall have a net worth at least as great as Tenant’s upon execution of this Lease.  At Tenant’s request and Tenant’s sole cost and expense, Landlord shall execute such commercially reasonable documents and instruments as Tenant may reasonably request in connection with a Transfer.

 

14.                               SUBORDINATION/ESTOPPEL CERTIFICATES/RIGHTS OF MORTGAGEE.

 

(a)                                 Subordination of Lease.  Except to the extent that it may be provided otherwise by written agreement between Tenant and a mortgagee, or otherwise elected by a mortgagee, this Lease shall be subordinate to any mortgage or to any other voluntary lien or encumbrance affecting the Property or Building or any part thereof, whether now existing or hereafter granted.  Any mortgagee shall have the right, at its option, to subordinate its mortgage to this Lease, in whole or in part, by recording a unilateral declaration to such effect.  Notwithstanding the foregoing provisions of this Section, Tenant agrees, at the request of Landlord or any mortgagee, to execute and deliver promptly any certificate or other instrument which Landlord or such mortgagee may request to further evidence the subordination of this Lease and all rights of Tenant hereunder to any mortgage, and to all advances made under such mortgage and/or agreeing to attorn to such mortgagee in the event that it succeeds to Landlord’s interest in the Property, provided that (i) the holder of any such mortgage shall execute and deliver to Tenant a non-disturbance agreement in a form approved by the holder of such mortgage.

 

(b)                                 Right to Cure.  No act or failure to act on the part of Landlord which would entitle Tenant under the terms of this Lease, or by law, to be relieved of Tenant’s obligations hereunder or to terminate this Lease, shall result in a release or termination of such obligations or a termination of this Lease unless (i) Tenant shall have first given written notice of Landlord’s act or failure to act to first mortgagees of record, if any, and to any other mortgagees of whom Tenant has been given written notice, specifying the act or failure to act on the part of Landlord which could or would give basis to Tenant’s rights; and (ii) such mortgagees, after receipt of such notice, have failed or refused to correct or cure the condition complained of within a reasonable time thereafter, but nothing contained in this Section shall be deemed to impose any obligation on any such mortgagees to correct or cure any such condition.  “Reasonable time” as used above means and includes a reasonable time to obtain possession of the Property and Building if any such mortgagee elects to do so and a reasonable time to correct or cure the condition if such condition is determined to exist.

 

(c)                                  Prepaid Rent.  No Rent shall be paid more than thirty (30) days prior to the due dates thereof and, as to any mortgagees of whom Tenant has been given written notice, payments made in violation of this provision shall (except to the extent that such rents are actually received by such mortgagee) be a nullity as against such mortgagee and Tenant shall be liable for the amount of such payments to such mortgagee (excluding the first month’s rent payable upon execution of this Lease).

 

(d)                                 Continuing Offer.  The covenants and agreements contained in this Lease with respect to the rights, powers and benefits of a mortgagee (particularly, without limitation thereby, the covenants and agreements contained in this Section) constitute a continuing offer to any person, corporation or other entity, which by accepting or requiring an assignment of this Lease or by entry or foreclosure assumes the obligations herein set forth with respect to such 

 

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mortgagee; every such mortgagee is hereby constituted a party to this Lease as an obligee hereunder to the same extent as though its name was written hereon as such; and such mortgagee shall be entitled to enforce such provisions in its own name.

 

(e)                                  Estoppel Certificate.  Landlord and Tenant agree, at any time and from time to time, within ten (10) days’ of written request by the other party, or its mortgagee (the “Requesting Party”), to execute, acknowledge and deliver to the Requesting Party a statement in writing certifying: that this Lease is presently in full force and effect and unmodified except as may be indicated, with a true and correct copy of the Lease and any and all amendments and side agreements, if any, attached; the commencement and expiration dates of the Term; that the Tenant has accepted possession of the Premises except as may be indicated, any improvements required by the terms of this Lease to be made by the Landlord have been completed to the satisfaction of the Tenant except as may be indicated; that no rent under the Lease has been paid more than thirty (30) days in advance of its due date (except for security deposits, if any, in a specified amount); that the addresses for notices to be sent to the Landlord and Tenant are as set forth in the Lease or as specified in such certificate; that the Tenant as of the date of executing the certificate has no charge, lien or claim of offset under the Lease, or otherwise, against rents or other charges due or to become due thereunder except as may be indicated; that the Requesting Party is not in default of its obligations under this Lease, except as may be indicated; and as to such other information as the Requesting Party’s lender, prospective lender, purchaser or prospective purchaser may reasonably require.  In addition, in the event the Tenant receives written notice from the Landlord and the holder of a mortgage, or ground lease on the Property so requesting, the Tenant shall enter into a written agreement with the holder of such mortgage, or ground lease containing such provisions as the holder shall reasonably require, including, without limitation, provisions that: (1) the Tenant will not pay any rent under the Lease more than thirty (30) days in advance of its due date (except for security deposits); (2) Tenant will not enter into or consent to the modification of any of the terms of this Lease nor to the termination thereof by the Landlord without the mortgagee’s or ground lessor’s prior written consent; and (3) Tenant will not seek to terminate this Lease by reason of any act or omission of the Landlord until the Tenant shall have given written notice of such act or omission to the holder of such mortgage, or ground lease (at such holder’s last address furnished the Tenant) and until a reasonable period of time shall have elapsed following the giving of such notice, but in no event less than thirty (30) days, during which period such holder shall have the right, but shall not be obligated to remedy such act or omission.

 

15.                               LANDLORD’S ACCESS/RIGHT OF ENTRY.  The Landlord, and agents of the Landlord may, at all reasonable times, upon not less than twenty-four (24) hours’ notice, except in emergencies, enter to view the Premises to make such repairs and alterations as Landlord should elect to do and may remove placards and signs not approved and affixed as herein provided, and at any time within nine (9) months before the expiration of the Term, may affix to any suitable part of the Premises a notice for letting or selling the Premises or property of which the Premises are a part and keep the same so affixed without hindrance or molestation and may show the Premises to others.  Landlord reserves the right from time to time, upon reasonable advance notice and without unreasonable interference with Tenant’s use or access to the Premises: (a) to install, use, maintain, repair, replace and relocate for service to the Premises and other parts of the Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures, wherever located in the Premises or Building, (b) to alter or relocate any other common facility, 

 

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provided that such alterations are substantially equivalent or better so long as such changes do not reduce the square feet of the Premises; (c) to change the size of any common facility or area, or the location and nature of any common facility or area; (d) to make, and from time to time change, reasonable rules and regulations relating to the use of the common facilities and areas provided such rules and regulations are non-financial, non-discriminatory, uniformly enforced and do not diminish Lessee’s use of the Premises or rights under this Lease; (e) temporarily close any common facilities or areas to make repairs or changes or to prevent the acquisition of easements or a dedication to public use, or to discourage use of such facilities by anyone not entitled thereto provided that Lessor shall at all times maintain reasonable access to the Premises, and (f) to do any other act or thing with respect to the common facilities or areas which in Lessor’s reasonable judgment may be desirable to improve the convenience and utility of the common facilities and areas to the occupants of the Building of which the Premises are a part; provided that Lessor shall exercise any of the foregoing rights in such a manner as not to unreasonably interfere with Lessee’s use of the Premises.

 

16.                               INDEMNIFICATIONS AND LIABILITY.

 

Except as provided in Section 24 with regard to insured losses, the Tenant shall save the Landlord and its trustees, beneficiaries, managers, members, servants, agents and employees and those in privity with the estate of the Landlord, harmless from all loss and damage occasioned by the use or escape of water or by the bursting of pipes, or by any nuisance caused by the Tenant or on the Premises, unless such loss is caused by the neglect of the Landlord.  In addition, to the maximum extent permitted by law, Tenant hereby indemnifies and covenants to save Landlord and its trustees, beneficiaries, managers, members, servants, agents and employees and those in privity with the estate of the Landlord, harmless from and against any and all claims, damages, liabilities or penalties asserted by or on behalf of any person, firm, corporation or public authority:

 

(i)            on account of or based upon any injury to person, or loss of or damage to property, sustained or occurring on the Premises on account of or based upon the act, omission, fault, negligence or misconduct of any person other than Landlord or its trustees, beneficiaries, managers, members, servants, agents, employees or contractors;

 

(ii)           on account of or based upon any injury to person, or loss of or damage to property, sustained or occurring on or about the Property of which the Premises are a part and other than on the Premises (and, in particular, without limiting the generality of the foregoing, on or about the stairways, entrance ways, corridors, sidewalks, concourses, approaches, area ways, or other appurtenances and facilities used in connection with the Property or the Premises) arising out of the use or occupancy of the Property or the Premises by the Tenant or by any person claiming by, through or under Tenant, and caused by the act, omission, fault, negligence or misconduct of Tenant or its officers, servants, agents, employees, independent contractors or invitees; and

 

(iii)          on account of or based upon (including monies due on account of) any work or thing whatsoever done (other than by Landlord or its contractors, or agents or 

 

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employees of either) on the Premises during the Term of this Lease and during the period of time, if any, prior to the Commencement Date when Tenant may have been given access to the Premises, except as a result of the acts of the Landlord or its trustees, beneficiaries, managers, members, servants, agents or employees;

 

and, in respect of any of the foregoing, from and against all costs, expenses (including, without limitation, reasonable attorneys’ fees) and liabilities incurred in or in connection with any such claim, or any action or proceeding brought thereon.

 

In addition, to the maximum extent permitted by law, Landlord hereby indemnifies and covenants to save Tenant and its trustees, beneficiaries, managers, members, servants, agents and employees and those in privity with the estate of the Tenant, harmless from and against any and all claims, damages, liabilities or penalties asserted by or on behalf of any person, firm, corporation or public authority on account of or based upon any injury to person, or loss of or damage to property, sustained or occurring on the Premises or the Property on account of or based upon the act, omission, fault, negligence or misconduct of Landlord or its trustees, beneficiaries, managers, members, servants, agents, employees or contractors, and from and against all costs, expenses (including, without limitation, reasonable attorneys’ fees) and liabilities incurred in or in connection with any such claim, or any action or proceeding brought thereon.

 

Tenant shall not generate, store, release, transport, dispose of or otherwise handle any substance, waste or material deemed hazardous, toxic or a contaminant under any federal, state or local statute, law, ordinance, rule or regulation, order or decision (hereinafter, any “Hazardous Substance”) except for customary office supplies and cleaning materials and other minimal amounts of such materials customarily used in the operation of Tenant’s business, but always in compliance with all applicable laws.  Tenant shall defend, indemnify and hold harmless Landlord and any mortgagee of Landlord and their respective officers, managers and members of, from and against any and all liability, loss, damage, reasonable cost, or expense, including without limitation, reasonable attorneys’ fees, consultants’ fees and clean-up costs, arising from the presence, release, or threat of release of any Hazardous Substance on the Premises first occurring during the Term and arising out of the generation, storage, release, transportation, disposal or other handling of any Hazardous Substance at or near the Premises by Tenant, its employees, invitees, contractors or agents, and, notwithstanding any other provision of this Lease to the contrary, including, without limiting the generality of the foregoing, any release of Hazardous Substances from the Premises regardless of whether said release or threat of release is caused by fire, other casualty, negligence or any other cause of any kind, regardless of fault, unless such release is caused by Landlord.

 

The above indemnifications shall survive the expiration or earlier termination of this Lease.

 

17.                               LIABILITY AND PROPERTY INSURANCE

 

(a)                                 The Tenant shall maintain in full force, from the Commencement Date, with respect to the Premises and the Property of which the Premises are a part, commercial general liability insurance written on an occurrence basis and including contractual liability coverage to cover any liabilities assumed under this Lease in the amount of $2,000,000.00, with property-

 

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damage insurance in limits of $2,000,000, in responsible companies qualified to do business in Massachusetts and in good standing therein naming the Landlord as insured and the Tenant as an additional insured against injury to persons or damage to property as provided.  The Tenant shall deposit with the Landlord ACORD Form 27 certificates for such insurance at or prior to the commencement of the term, and thereafter within thirty (30) days prior to the expiration of any such policies.  AH such insurance certificates shall provide that such policies shall not be canceled or amended without at least twenty (20) days’ prior written notice to each insured and additional insured named therein.  The Landlord shall have the right from time to time to require modifications to the policy or policies or to require an increase in such minimum limits upon notice to the Tenant, provided that any such increase or modifications shall provide coverage of a nature and in amounts similar to coverage on like properties in the Greater Boston market as reasonably determined by Landlord.  Additionally, the Tenant shall also maintain in full force and effect from the Commencement Date throughout the Lease Term and thereafter so long as the Tenant is in occupancy of any part of the Premises, property insurance covering the Tenant’s furnishings, fixtures, equipment or other personal property of the Tenant written on an “All Risk” basis for full replacement cost.

 

The Tenant agrees that Landlord shall not be responsible or liable to Tenant, or those claiming by, through or under Tenant, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying or using adjoining premises, or otherwise, or for any loss or damage resulting to the Tenant or those claiming by, through or under Tenant, or its or their property, except that the foregoing shall not exculpate the Landlord from its own negligent acts or omissions.

 

(b)                                 During the Term of this Lease, Landlord shall obtain and maintain the following insurance coverage in such amounts as Landlord shall reasonably determine, and the Tenant shall be billed for its proportionate share of the annual insurance premiums related thereto as part of Landlord’s Operating Costs pursuant to Section 5(b) above: (i) all risk hazard insurance covering the Building, Landlord’s Work in the Premises and all other improvements owned by the Landlord on the property of which the Premises are a part; (ii) general liability insurance covering the common areas of the Property containing the Premises for personal injury, bodily injury and property damage claims; and (iii) such other reasonable insurance coverages which Landlord may deem necessary to protect the Premises and the Building and property of which the Premises are part.

 

18.                               FIRE, CASUALTY - EMINENT DOMAIN.  Should a substantial portion of the Premises or Building of which the Premises are a part be substantially damaged by fire or other casualty, or a substantial portion of the Premises be taken by eminent domain, the Landlord may elect to terminate this Lease.  When such fire, casualty, or taking renders the Premises substantially unsuitable for their intended use, a just and proportionate abatement of Rent shall be made for the period in which, by reason of such damage, there is interference with Tenant’s use of the Premises, and the Tenant may elect to terminate this Lease if: (a) The Landlord fails to give written notice within sixty (60) days of intention to restore Premises; or (b) The Landlord fails to commence restorations within sixty (60) days of the casualty or fails to restore the Premises to a condition substantially suitable for their intended use within one hundred eighty (180) days of said fire, casualty or taking.

 

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If during the term of this Lease, there shall be partial damage to the Premises or Building by fire or other casualty or taking, the Landlord shall promptly proceed to restore the Premises to its condition prior to such event, and restoration shall be complete as soon as reasonably possible, but in any event, within one hundred twenty (120) days, and a just and proportionate abatement of Rent shall be made for the period in which, by reason of such damage, there is interference with Tenant’s use of the Premises “Substantial damage” shall be deemed to mean damage which cannot in the ordinary course be expected to be repaired in 180 days and “partial damage” shall be deemed to mean damage which can reasonably be expected to be repaired within 120 days.

 

The Landlord reserves, and the Tenant grants to the Landlord, all rights which the Tenant may have for damages or injury to the Premises for any taking by condemnation or eminent domain, except for damage to the Tenant’s fixtures, property or equipment.  Tenant acknowledges and agrees that Tenant shall be solely responsible to insure its fixtures, property and equipment.

 

In no event shall the Landlord have any obligation to make any repairs or perform any restoration work under this Section if prevented from doing so by reason of any cause beyond its reasonable control, including, without limitation, the requirements of any applicable laws, codes, ordinances, rules or regulations, or in the event of damage to or destruction of any portion of the Building which is not fully covered by the insurance proceeds received by the Landlord or in the event that any portion of the insurance proceeds must be paid over to or are retained by the holder of any mortgage on the Property and in such events Landlord may terminate this Lease by written notice to the Tenant, given within thirty (30) days after the date of notice to Landlord that said damage or destruction is not so covered, or that the proceeds are not available for repair of the damage or destruction.  Further, the Landlord shall not be obligated to make any repairs or perform any restoration work to any fixtures in or portions of the Premises or the Building which are not the property of the Landlord or other leasehold improvements constructed by Tenant.

 

19.                               DEFAULTS AND BANKRUPTCY.

 

(a)                                 In the event (each an “Event of Default”):

 

(i)            The Tenant shall fail to pay any installment of Base Rent, Additional Rent or other sums herein specified within five (5) days of any due date;

 

(ii)           The Tenant shall fail to perform or observe any other of the Tenant’s covenants, agreements, or obligations hereunder and such default shall not be corrected within thirty (30) days after written notice thereof or in the event of non-monetary defaults, such longer time as is reasonably required provided the Tenant is diligently proceeding to cure the default and in any event within sixty (60) days after written notice;

 

(iii)          The Tenant shall be declared bankrupt or insolvent according to law, or, if any assignment shall be made of Tenant’s property for the benefit of creditors or any receiver or trustee is appointed for all or any portion of the Tenant’s property or any involuntary or voluntary proceedings are begun 

 

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under any bankruptcy or similar laws for reorganization or arrangements to settle, satisfy or extend payment of debts;

 

(iv)          The Tenant shall vacate or abandon the Premises and has ceased paying rent and/or performing its other obligations under this Lease; or

 

(v)           If the Tenant’s interest in this Lease shall be taken by execution or other process of law or devolve upon or pass to another person by operation of law or otherwise, except as otherwise permitted hereunder;

 

then the Landlord shall have the right thereafter, while such default continues, to declare the term of this Lease ended, without prejudice to any remedies which might be otherwise used for arrears of rent or other default.

 

(b)                                 If this Lease shall have been terminated as provided in Section 19(a), then Landlord may, without notice re-enter the Premises either by summary proceedings or otherwise, and to remove and dispossess Tenant and all other persons and any and all property from the same, as if this Lease had not been made.

 

(c)                                  In the event that this Lease is terminated under any of the provisions contained in Section 19(a) or shall be otherwise terminated by breach of any obligation of Tenant, Tenant covenants and agrees forthwith to pay and be liable for, on the days originally fixed herein for the payment thereof, amounts equal to the several installments of Base Rent and other Rent and charges reserved as they would, under the terms of this Lease, become due if this Lease had not been terminated or if Landlord has not entered or re-entered, as aforesaid, and whether the Premises be relet or remain vacant, in whole or in part, or for a period less than the remainder of the Term, and for the whole thereof, but in the event the Premises be relet by Landlord, Tenant shall be entitled to a credit in the net amount of rent and other charges received by Landlord in reletting, after deduction of all reasonable expenses incurred in reletting the Premises (and not reimbursed by third person) (including, without limitation, remodeling costs, brokerage fees and the like), and in collecting the rent in connection therewith, in the following manner:

 

Amounts received by Landlord after reletting shall first be applied against such Landlord’s reasonable expenses, until the same are recovered, and until such recovery, Tenant shall pay, as of each day when a payment would fall due under this Lease, the amount which Tenant is obligated to pay under the terms of this Lease (Tenant’s liability prior to any such reletting and such recovery not in any way to be diminished as a result of the fact that such reletting might be for a rent higher than the rent provided for in this Lease); when and if such expenses have been completely recovered, the amounts received from reletting by Landlord as have not previously been applied shall be credited against Tenant’s obligations as of each day when a payment would fall due under this Lease, and only the net amount therefor shall be payable by Tenant.  Further, amounts received by Landlord from such reletting for any period shall be credited only against obligations of Tenant allocable to such period, and shall not be credited against obligations of Tenant hereunder accruing subsequent or prior to such period; nor shall any credit of any kind be due for any period after the date when the term of this Lease is scheduled to expire according to its terms.

 

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Landlord shall use reasonable efforts to mitigate any damages hereunder following any termination of this Lease or any termination of Tenant’s possession of the Premises.

 

(d)                                 At any time within eighteen (18) months after such termination and whether or not Landlord shall have collected any damages as aforesaid, as liquidated final damages and in lieu of all other damages beyond the date of notice from Landlord to Tenant, at Landlord’s election, Tenant shall pay to Landlord such a sum as at the time of the giving of such notice represents the amount of the excess, if any, of the total rent and other benefits which would have accrued to Landlord under this Lease from the date of such notice for what would be the then unexpired Lease Term discounted to present value at a six (6%) percent interest rate (but not including any unexercised Renewal Options) if the Lease terms had been fully complied with by Tenant over and above the then cash rental present value (in advance) of the Premises for the balance of the Lease Term.

 

(e)                                  In case of any Event of Default, re-entry, dispossession by summary proceedings or otherwise, Landlord may (i) re-let the Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term of terms which may at Landlord’s option be equal to or less than or exceed the period which would otherwise have constituted the balance of the Term of this Lease and may grant concessions or free rent to the extent that Landlord considers advisable or necessary to re-let the same and (ii) may make such alterations and repairs in the Premises as Landlord in its reasonable judgment considers advisable or necessary for the purpose of reletting the Premises; and the making of such alterations, repairs and decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid.  Landlord shall in no event be liable, in any way whatsoever for failure to re-let the Premises, or, in the event that Premises are re-let, for failure to collect the rent under re-letting.  Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of Tenant being evicted or dispossessed, or in the event of Landlord obtaining possession of the Premises, by reason of the violation by Tenant of any of the covenants and conditions of this Lease.

 

(f)                                   The specified remedies to which Landlord may resort hereunder are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be entitled lawfully, and Landlord may invoke any remedy (including the remedy of specific performance) allowed at law or in equity as if specific remedies were not herein provided for.

 

(g)                                  Landlord shall in no event be in default in the performance of any of Landlord’s obligations hereunder unless and until Landlord shall have failed to perform such obligations within thirty (30) days, or if thirty (30) days is not reasonably sufficient time, such additional time as is reasonably required to correct any such default, after notice by Tenant to Landlord properly specifying wherein Landlord has failed to perform any such obligation.  Tenant will not seek to terminate this Lease by reason of any act or omission of the Landlord until the Tenant shall have given written notice of such act or omission to the holder of such mortgage, deed of trust or ground lease (at such holder’s last address furnished the Tenant) and until thirty (30) days shall have elapsed following the giving of such notice during which period such holder shall have the right, but shall not be obligated, to remedy such act or omission.

 

20.                               NOTICE.  Any notice hereunder shall be in writing and shall be deemed duly served if mailed to the Tenant by registered or certified mail, return receipt requested, postage prepaid or 

 

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by a nationally recognized overnight courier service to the addresses set forth above, unless notice is given of an alternative mailing addresses in the manner prescribed above.  Notices shall be deemed to have been received or given upon the date of actual receipt or the date on which the addressee refused receipt.

 

21.                               SURRENDER.  The Tenant shall at the expiration or other termination of this Lease remove all Tenant’s goods and effects from the Premises (including, without hereby limiting the generality of the foregoing, all signs and lettering affixed or painted by the Tenant, either inside or outside the Premises).  Tenant shall deliver to the Landlord the Premises and all keys, locks thereto, and other fixtures connected therewith and all alterations and additions made to or upon the Premises, in the same condition as they were at the commencement of the Term, or in the case of permitted alterations, additions and improvements as they were put in during the term hereof, reasonable wear and tear and damage by fire or other casualty and condemnation and repairs which are the responsibility of Landlord only excepted.  In the event of the Tenant’s failure to remove any of Tenant’s property from the Premises or otherwise comply with the provisions above, Landlord shall have all remedies available at law, and additionally, Landlord is hereby authorized, without liability to Tenant for loss or damage thereto, and at the sole risk of Tenant, to remove and store any of the property at Tenant’s expense, or to retain same under Landlord’s control or to sell at public or private sale, without notice, any or all of the property not so removed and to apply the net proceeds of such sale to the payment of any sum due hereunder, or to destroy such property Landlord shall have all remedies available at law or in equity for Tenant’s failure so to do.

 

In addition to all such remedies, Tenant further agrees that any holding over by it which has not been consented to in writing by Landlord shall be treated as a tenancy at sufferance at a per diem calculated on the basis of one and one-half (1.5) times the monthly rent in effect at the time of expiration or earlier termination, plus other charges then applicable as of the date of the expiration or earlier termination of this Lease, and such tenancy at sufferance shall otherwise be on the terms and conditions set forth in this Lease so far as applicable.  Any monies received after the termination date of the Lease will be applied for “use and occupancy only” and will not reestablish the tenancy and shall otherwise be on the terms and conditions set forth in this Lease, as far as applicable.

 

22.                               BROKERAGE.  Landlord and Tenant represent and warrant to each other that they have not dealt with any broker in connection with the Premises and each party indemnifies the other from any claims made by any other broker arising in breach of such representation.

 

23.                               QUIET ENJOYMENT.  Tenant shall, upon paying the Rent reserved hereunder and observing and performing all of the terms, covenants and conditions on Tenant’s part to be observed and performed, peaceably and quietly have and hold the Premises without hindrance or molestation by any person or persons lawfully claiming by, through or under, Landlord, subject, however, to the terms of this Lease.  It is understood and agreed that this covenant and any and all other covenants of Landlord contained in this Lease shall be binding upon Landlord and Landlord’s successors only with respect to breaches occurring during Landlord’s and Landlord’s successors’ respective ownership of Landlord’s interest hereunder.

 

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24.                               WAIVER OF SUBROGATION.  Landlord and Tenant hereby release each other, to the extent of their respective insurance coverages or insurance coverages required to be carried pursuant to this Lease, whichever is greater, from any and all liability for any loss or damage caused by fire, any of the extended coverage casualties, or other casualties insured against, even if such fire or other casualty shall be brought about by the fault or negligence of the party benefited by the release of its agents, provided, however, this release shall be in force and effect only with respect to loss or damage occurring during such time as the policies of fire, extended coverage and other insurance, maintained by the releasing party shall contain a clause to the effect that such release shall not affect said policies or the right of the releasing party to recover thereunder.

 

25.                               ENTIRE AGREEMENT; EXECUTION AND HEADNOTES.  This Lease together with all Exhibits referred to herein and the Summary of Basic Terms sets forth the entire agreement between the parties hereto and supersedes and replaces ail prior agreements and understandings, including, without limitation, any letters of intent.  This Lease cannot be modified or amended, except by a writing duly executed by the respective parties.  This Lease is executed as a sealed instrument and in multiple counterparts, and shall be deemed one instrument.  The headnotes throughout this Lease are for convenience of reference only, and shall in no way be held or deemed to define, limit, explain, describe, modify or add to the interpretation, construction or meaning of any provision of this Lease.  This Lease has been negotiated by the parties and any ambiguity in any provision shall not be construed against either party as drafter.  This Lease shall be governed by, and construed in accordance with the laws of The Commonwealth of Massachusetts.

 

26.                               NO WAIVER.  No assent, express or implied, by the Landlord or Tenant to any breach of any agreement or condition herein contained on the part of the Tenant or Landlord to be performed or observed, and no waiver, express or implied, of any such agreement or condition shall be deemed to be a waiver of an assent to any succeeding breach of the same or any other agreement or condition; the acceptance by the Landlord of Rent or other payment hereunder, or silence by the Landlord or Tenant as to any breach, shall not be construed as waiving any of the Landlord’s or Tenant’s rights hereunder unless such waiver shall be in writing.  No acceptance by Landlord of a lesser sum than the Base Rent, Additional Rent or any other charge then due shall be deemed to be other than on account of the earliest installment of such vent or charge due, nor shall any endorsement or statement on any check or any charge be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other remedy provided in this Lease.

 

27.                               SUMMARY OF BASIC TERMS.  The Summary of Basic Terms which is affixed to this Lease sets forth certain basic terms and information which is thereafter referred to in the main text of this Lease.  Every reference to the Summary of Basic Terms, or to a particular item thereon, shall have the effect of incorporating the Summary, or the particular item thereof, into the main text of the Lease.

 

28.                               PARTIAL INVALIDITY.  The invalidity of one or more phrases, sentences, clauses or articles shall not affect the remaining portions of this Lease, and if any part of this Lease should be declared invalid by the final order, decree or judgment of a court of competent jurisdiction,

 

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this Lease shall be construed as if such invalid phrases, sentences, clauses or articles had not been inserted.

 

29.          NO RECORDING.  Neither this Lease nor, except as hereafter provided, any memorandum regarding the Lease shall be recorded.  At the request of either party, the parties shall execute and record a notice of lease.

 

30.          RIGHT TO PERFORM TENANT’S COVENANTS.  Tenant covenants and agrees that, if it shall, at any time, fail to make any payment or perform any other act on its part to be made or performed as in this Lease provided, and Tenant fails to cure the same within the time periods set forth in Section 19, or in the event no time period is specified therein, within thirty (30) days of written notice, or in the event the performance of such act(s) (excluding therefrom any payment obligation) cannot be cured within twenty (20) days of written notice, despite due diligence, or such shorter time as Landlord deems necessary in the event of an emergency, Landlord, in its sole discretion following notice to Tenant of its election so to do, may make any payment or perform any other act on the part of the Tenant to be made and performed as in this Lease provided, in such manner and to such extent as Landlord may reasonably deem necessary, and in exercising any such rights, Landlord may pay reasonable necessary and incidental costs and expenses, employ counsel, and incur and pay reasonable attorneys’ fees.  The making of any such payment or the performing of any other act by the Landlord pursuant to this Section shall not waive, or release the Tenant from, any obligations of the Tenant in this Lease contained.  All reasonable sums so paid by Landlord and all reasonably necessary and incidental costs and expenses in connection with the performance of any such act by Landlord shall, except as otherwise in this Lease expressly provided, be payable to Landlord within thirty (30) days after Landlord presents an invoice (with backup materials) to Tenant, and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of the non-payment thereof by Tenant as in the case of default by Tenant in the payment of the Base Rent.

 

31.          LIMITATION OF LANDLORD’S LIABILITY.  Unless otherwise provided in this Lease, the obligations of the Landlord hereunder shall be binding upon Landlord and each succeeding owner of the Landlord’s interest hereunder only during the period of such ownership and Landlord and each succeeding owner shall have no liability whatsoever except for its obligations during each such respective period.  Tenant hereby agrees for itself and each succeeding holder of the Tenant’s interest, or any portion thereof, hereunder, that any judgment, decree or award obtained against the Landlord or any succeeding owner of the Landlord’s interest, which is in any manner related to this Lease, the Premises or the Tenant’s use and occupancy of the Premises or the common areas of the Building or Property, whether at law or in equity, shall be satisfied out of the Landlord’s interest in the Building or Property and the rents and income from the Property and Building subject to the rights of mortgagees, and further agrees to look only to such assets and to no other assets of the Landlord, or any succeeding owner, for satisfaction.  Neither the Trustees, partners nor beneficiaries of Landlord shall have any personal liability hereunder.  The foregoing limitation shall not operate to bar the Tenant from seeking injunctive or other equitable relief from a court of competent jurisdiction.  In no event shall Landlord ever be liable to Tenant for any indirect or consequential damages suffered by Tenant from whatever cause except in the event of actual damage caused by Landlord’s willful misconduct or bad faith.

 

21

 

32.          MISCELLANEOUS.  If any payment of Base Rent or other payment or charge payable to Landlord hereunder or with respect hereto shall not be paid when due (after the receipt of an invoice except in the case of Base Rent), in which case no invoice shall be required, the same shall bear interest from date when same was due and payable until the date paid with interest at the rate of Eighteen (18%) percent per annum.  In addition, a service fee in the amount of $250.00 will be charged for each late rent charge invoice prepared in the event rent is not paid on or before the fifth (5th) day of any month.

 

Without limiting any of Landlord’s rights and remedies hereunder, and in addition to all other amounts Tenant is otherwise obligated to pay, it is expressly agreed that, unless prohibited by applicable law, the Tenant agrees to pay to the Landlord the amount of all reasonable legal fees and expenses incurred by Landlord arising out of or resulting from any act or omission by the Tenant with respect to this Lease or the Premises, including, without limitation, any breach by the Tenant of its obligations hereunder.

 

Furthermore, if the Tenant shall request the Landlord’s consent or joinder in any instrument pertaining to this Lease, the Tenant agrees to promptly reimburse the Landlord for the reasonable legal fees incurred by Landlord in processing such request, whether or not the Landlord complies therewith; and if the Tenant shall fail to reimburse the Landlord within thirty (30) days after the Landlord’s request for reimbursement, the same shall be deemed to be a default in the Tenant’s monetary obligations under this Lease.  Whenever Tenant shall request approval by Landlord or Landlord’s architect or engineer of plans, drawings, specifications, or otherwise with respect to initial alteration of the Premises, subsequent remodeling thereof, installation of signs including subsequent changes thereof, or the like, Tenant specifically agrees to promptly pay to Landlord’s architect or engineer (or reimburse Landlord for the payment Landlord makes to said architect or engineer) for all reasonable charges involved in the review (and re-review, if necessary) and approval or disapproval thereof whether or not approval shall ultimately be given.

 

In the event that Landlord and Tenant are involved in any litigation regarding the performance of any of their obligations under this Lease, the unsuccessful party, as determined by final order, decree or judgment in such litigation issued by a court of competent jurisdiction, shall reimburse the successful party for all reasonable legal fees and expenses incurred by such successful party in connection with obtaining such final order, decree or judgment.

 

33.          WAIVER OF TRIAL BY JURY.  It is mutually agreed by and between Landlord and Tenant that the respective parties hereto shall and they hereby do waive trial by jury in any action, proceeding, or counterclaim brought by the parties hereto on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises, and/or any claim of injury or damage, and any emergency, summary or statutory remedy.

 

34.          SUBMISSION OF LEASE NOT OFFER.  The submission of this lease for examination and negotiation does not constitute an offer to lease, a reservation of, or option for, the premises and shall vest no right in any party.  Tenant and/or anyone claiming under or through tenant, shall have the rights to the premises as set forth herein, and this Lease shall become effective as a lease, only upon execution and delivery of a fully signed lease by Landlord 

 

22

 

and Tenant regardless of any written or verbal representation of any agent, manager or employee of landlord to the contrary.

 

35.          AUTHORITY.  If Tenant is a corporation or a limited liability company, each of the persons executing this instrument on behalf of the Tenant hereby covenants and warrants that the Tenant is a duly existing and valid corporation or limited liability company, as is the case, and that the person(s) so executing this Lease have been duly authorized and directed to so execute and deliver this Lease.  Further, if the Tenant is a corporation or a limited liability company, the Tenant shall deliver to the Landlord, at the time of execution of this lease a clerk’s or secretary’s certificate or other certificate of authority and incumbency attesting to the authority of the individual executing this Lease on behalf of the Tenant.

 

36.          TENANT’S OPTION TO EXTEND.  The Tenant shall have the option (the “Extension Option”) to extend the Term of this Lease specified in Section 3 hereof (herein referred to as the “Original Term”) for one (1) additional period of two (2) years (hereinafter referred to as the “Extended Term”).  Such option to extend may be exercised as hereinafter provided.  The Tenant may exercise the aforesaid Extension Option by giving written notice to the Landlord of Tenant’s election to extend the Original Term of this Lease, provided that such written notice shall be given not less than nine (9) months prior to the expiration of the Original Term.  Upon exercise of said Extension Option as aforesaid, the Term of this Lease shall be automatically extended by the aforesaid two (2) year period without the requirement of any further instrument, upon the same terms and conditions set forth in this Lease, and Landlord shall not be obligated to provide any so called “free rent” or tenant improvement allowance or other tenant inducements, and Base Rent for the Extended term shall be determined as provided in Section 36(a) below.  In the event that the Extension Option is duly exercised, all references contained in this Lease to the Term hereof, whether by number of years of number or months, shall be construed to refer to the Original Term hereof extended as aforesaid, whether or not specific reference thereto is made in this Lease.

 

(a)           Rent During Extended Term.  In the event Tenant exercises its Extension Option as herein provided, commencing on the first day of the Extended Term, Tenant shall pay to Landlord for the Premises then leased by Tenant annual Base Rent as set forth on the Summary of Basic Terms, and, in any event, shall continue to pay Additional Rent as set forth in Section 5(b).

 

(b)           Conditions Precedent to Exercise.  Notwithstanding any contrary provision of this Section 36 or any other provision of this Lease, the Extension Option and any exercise by Tenant of the Extension Option shall be void and of no effect unless on the date Tenant notifies Landlord that it is exercising the Extension Option and on the date of commencement of the applicable Extension Term (i) this Lease is in full force and effect, (ii) no Event of Default on the part of Tenant has occurred under this Lease, and (iii) Tenant has neither assigned this Lease nor sublet any portion of the Premises except as permitted in Section 13 of this Lease.

 

(c)           Amendment.  In the event Tenant elects to exercise the Extension Option as set forth in this Section 36, Landlord and Tenant agree to enter into an amendment to this Lease to confirm such exercise and to document all changes to the Lease, as amended, resulting from the exercise of such option.

 

23

 

37.          Intentionally Omitted.

 

38.          APPLICABLE LAW.  This Lease shall be governed by, and construed in accordance with the laws of The Commonwealth of Massachusetts.

 

(Signature Page Follows)

 

24

 

IN WITNESS WHEREOF, the parties hereto have signed this Lease as a sealed instrument as of the day and year first written above.

 

	
 
    	
LANDLORD:
    
	
 
    	
NIVEK INVESTMENTS I, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/   Dean Calivas
    
	
 
    	
Name:
    	
Dean Calivas
    
	
 
    	
Title:
    	
Agent on behalf of Nivek Investments I, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
KARYOPHARM THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/   Michael Kauffman
    
	
 
    	
Name:
    	
Michael Kauffman
    
	
 
    	
Title:
    	
CEO
    
					

 

25

 

EXHIBIT A

 

PLAN DEPICTING THE PREMISES (ATTACHED)
 (SECTION 2)

 

26

	
  

  	
  Exhibit A 2
  MERCER ROAD Premises

  

 

27

 

EXHIBIT B

 

LANDLORD’S WORK
 (SECTION 4)

 

Landlord to deliver Premises “As Is” except as noted below:

 

Landlord, at its sole cost and expense unless otherwise noted (which costs and expenses shall not be included in Operating Costs), shall:

 

1.                                      Paint all walls and woodwork along with some accent walls within the Premises, colors to be determined by Tenant;

 

2.                                      Install one wall and one office door in the office adjacent from the stairs in order to create two offices;

 

3.                                      Relocate the existing door to the executive bathroom to the location as mutually agreed upon by Landlord and Tenant; and

 

4.                                      Replace the carpeting in the Premises, the cost of which will be shared equally between Landlord and Tenant, with a carpet selected by Tenant from samples provided by Landlord.

 

5.                                      Replace any missing or inoperable window blinds, as determined by Landlord and Tenant’s joint inspection.

 

6.                                      Clean all windows.

 

7.                                      Replace the lock on the main door of the Premises.

 

8.                                      Remove computer rack and air conditioning system from the “data room” and deliver air conditioning unit to SBH Sciences, Inc.

 

28

 

FIRST AMENDMENT TO LEASE

 

This FIRST AMENDMENT TO LEASE (the “First Amendment”) is made as of this 10th of January 2012 by and between Nivek Investments I, LLC (the “Landlord”) and Karyopharm Therapeutics, Inc.  (the “Tenant”), collectively the “Parties”.

 

WHEREAS, there exists a certain Commercial Lease dated as of December 10, 2010 between Landlord and Tenant (the “Lease”) with respect to certain space consisting of approximately 4,094 rentable square feet (the “Existing Space”) in the building situated at the real estate known as 2-4 Mercer Road, Natick, Massachusetts (the “Building”);

 

WHEREAS, Tenant wishes to expand its premises by leasing from Landlord a portion of the first floor office space consisting of approximately 2,504 rentable square feet (the “Expansion Space”) in the Building as depicted on the attached Exhibit A;

 

WHEREAS, Tenant has elected to exercise its Extension Option as provided for in Section 36 of the Lease and to further extend the term of the Lease; and

 

WHEREAS, the Landlord and Tenant desire to amend the Lease as set forth below.

 

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

 

1.                                      Commencing February 1, 2012, Tenant shall lease from Landlord the Expansion Space, which together with the Existing Space shall collectively thereafter be known as the “Premises”.

 

2.                                      Landlord shall deliver the Premises “As Is” as to condition and layout, except for the improvements that Landlord will complete at its expense (the “Landlord’s Work”) as outlined on Exhibit B attached hereto and made part of this Amendment.

 

3.                                      The Lease shall be extended for a period of three (3) years commencing February 1, 2012 and terminating January 31, 2015 (the “Extension Term”), unless sooner terminated pursuant to the terms of the Lease.

 

4.                                      Commencing February 1, 2012, the monthly Base Rent shall be as follows:

 

Monthly Base Rent

 

	
Month
    	
 
    	
Existing Space
    	
 
    	
Expansion Space
    	
 
    	
Total
    	
 
    
	
02/1/2012-12/31/2013
    	
 
    	
$
    	
4,435.17
    	
 
    	
$
    	
3,474.30
    	
 
    	
$
    	
7,909.47
    	
 
    
	
01/1/2014-01/31/2015
    	
 
    	
$
    	
4,605.75
    	
 
    	
$
    	
3,578.63
    	
 
    	
$
    	
8,184.38
    	
 
    

 

The monthly Base Rent shall be payable by Tenant to Landlord on the first day of each calendar month without prior notice or demand and without set-off or deduction of any kind whatsoever.

 

5.                                      Tenant shall continue to pay its proportionate share of Additional Rent as set forth in Section 5 (b) of the Lease.  Tenant’s Proportionate Share shall be increased to 38.17%, 

 

1

 

computed on the basis of the Premises containing approximately 6,598 square feet of rentable area and the Building containing a total of 17,284 square feet of rentable area.

 

6.                                      Tenant’s Security Deposit shall be no less than Sixteen Thousand Seven Hundred Twenty Five and 00/100 ($16,725.00) during the Extension Term.

 

7.                                      Tenant shall be granted the non-exclusive use of nineteen (19) parking spaces during the Extension Term.

 

8.                                      Tenant acknowledges that it has not engaged any real estate broker in connection with this First Amendment and agrees to indemnify Landlord from any claims made by any other broker pursuant to this transaction.

 

9.                                      The Parties hereby represent that the Lease between Landlord and Tenant is in full force and effect and that neither party is in default at the present time or in violation of any of the terms or conditions of the Lease.

 

10.                               The undersigned individuals hereby certify that they have been duly authorized to execute and deliver this First Amendment to Lease on behalf of the Tenant and the Landlord, respectively.

 

11.                               This First Amendment may be executed in multiple counterparts and collectively shall be deemed one instrument.  The parties hereto agree that facsimile signatures shall be deemed original signatures for all purposes.

 

12.                               All capitalized terms herein, if not otherwise defined, shall have the meanings ascribed to them in the Lease.

 

13.                               This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

14.                               This First Amendment and the original Lease contain the entire agreement between the Parties with regard to the matters set forth herein and supersedes all prior discussions and understandings.

 

Except as modified above, all terms, covenants and conditions of the Lease shall remain in full force and effect.  In the event of a conflict between the terms and conditions of this First Amendment and the terms and conditions of the Lease, the terms and conditions of this First Amendment shall govern.

 

2

 

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly executed under seal as of the day and year first above written.

 

	
Landlord:
    	
 
    	
Tenant:
    
	
Nivek Investments I, LLC
    	
 
    	
Karyopharm Therapeutics, Inc.
    
	
 
    	
 
    	
 
    
	
/s/ Dean Calivas
    	
 
    	
/s/ Michael Kauffman
    
	
Dean Calivas, Stonegate Group, LLC, as agent   on behalf of Nivek Investments I, LLC
    	
 
    	
Michael Kauffman, M.D., Chief Executive   Officer
    

 

3

 

EXHIBIT A

 

PREMISES

 

(Attached)

 

4

 

	
  

  	
  Existing Space
  Expansion Space

  

 

5

 

EXHIBIT B

 

LANDLORD’S WORK

 

Landlord shall deliver the Premises “As Is” as to condition and layout, except as noted below.

 

Landlord, at its sole cost and expense, which cost shall not be included in Operating Costs, shall:

 

EXPANSION SPACE

 

·                  Lobby: remove approximately 21’ of lobby wall and relocate fire alarm, thermostat, light fixtures and others wires.  Replace drop-ceiling sections to match existing ceiling.  Patch and paint affected areas.  Remove one of the two entrance doors in glass vestibule and install a 55”1/4 x 93”1/2 glass panel to match.

 

·                  Large office: construct two (2) 10’ high walls dividing the office into three (3) offices.  The new walls will be insulated and will include outlets.  Two (2) 2’ x 2’ drop-ceiling HVAC diffusers will be added to the office area.  Install baseboard, adjust drop-ceiling to match existing.  Replace ceiling tiles if and as needed.  Plaster and paint affected areas.  Open and frame one new flush pre-hung birch door, solid core 36x80, polyurethane and install locks.

 

·                  Conference room (new): construct approximately 15’4” long floor to ceiling glass panel wall framed with sheetrock / metal frame and a new flush pre-hung birch door, solid core 36x80, polyurethane and locks.

 

·                  Carpet: remove and replace carpet throughout first floor office space to match the carpet in the Existing Space.

 

EXISTING SPACE

 

·                  Office (northwest corner): remove existing door and wall to open area.  Construct one 11’5” x 10’ high wall dividing the room.  Install baseboard, plaster and paint affected areas.  Adjust drop-ceiling sections to match existing ceiling.  Add one (1) 2’ x2’ drop-ceiling HVAC diffuser.  Separate light fixtures, add two (2) new switches, two (2) double outlets and, if needed, one (1) additional light fixture.  Frame two (2) flush pre-hung birch doors, solid core 36x80, polyurethane and install locks for both rooms (reuse one existing door).

 

6

 

SECOND AMENDMENT TO LEASE

 

This SECOND AMENDMENT TO LEASE (the “Second Amendment”) is made as of this 29th day of July 2013 by and between Nivek Investments I, LLC (the “Landlord”) and Karyopharm Therapeutics, Inc. (the “Tenant”), collectively the “Parties”.

 

WHEREAS, there exists a certain Commercial Lease dated December 10, 2010 between Landlord and Tenant, as amended by the First Amendment to Lease dated January 10, 2012 (collectively the “Lease”) with respect to certain office space consisting of approximately 6,598 rentable square feet (the “Existing Premises”) in the building situated on the real estate known as 2-4 Mercer Road, Natick, Massachusetts (the “Building”);

 

WHEREAS, Tenant wishes to expand its Existing Premises by leasing from Landlord a portion of the first floor office space in the Building consisting of approximately 1,145 rentable square feet (the “Expansion Space”) as depicted on the attached Exhibit A;

 

WHEREAS, the Landlord and Tenant desire to amend the Lease as set forth below.

 

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

 

1.                                      Commencing August 1, 2013, Tenant shall lease from Landlord the Expansion Space, which together with the Existing Premises shall collectively equal 7,743 square feet of rentable area and shall hereinafter be known as the “Premises”.

 

2.                                      Landlord shall deliver the Expansion Space to Tenant “As Is” as to condition and layout.  However, Landlord shall improve the Expansion Space as detailed on the attached Exhibit B (the “Tenant Improvements”) at Tenant’s sole cost and expense.  Tenant shall reimburse Landlord for all Tenant Improvements within five (5) days of invoice from Landlord to Tenant.

 

3.                                      Commencing August 1, 2013, the monthly Base Rent shall be adjusted as follows:

 

Monthly Base Rent

 

	
Lease Period
    	
 
    	
Existing Premises
    	
 
    	
Expansion Space
    	
 
    	
Total
    	
 
    
	
08/01/2013 —   08/31/2013
    	
 
    	
$
    	
7,909.47
    	
 
    	
$
    	
3,000.00
    	
 
    	
$
    	
10,909.47
    	
 
    
	
09/01/2013 —   12/31/2013
    	
 
    	
$
    	
7,909.47
    	
 
    	
$
    	
1,525.00
    	
 
    	
$
    	
9,434.47
    	
 
    
	
01/01/2014 —   01/31/2015
    	
 
    	
$
    	
8,184.38
    	
 
    	
$
    	
1,525.00
    	
 
    	
$
    	
9,709.38
    	
 
    

 

The monthly Base Rent shall be payable by Tenant to Landlord on the first day of each calendar month without prior notice or demand and without set-off or deduction of any kind whatsoever.

 

4.                                      Tenant shall continue to pay it proportionate share of Additional Rent as set forth in Section 5(b) of the Lease.

 

5.                                      Tenant acknowledges that it has not engaged any real estate broker in connection with this Second Amendment and agrees to indemnify Landlord from any claims made by any broker pursuant to this transaction.

 

1

 

6.                                      The Parties hereby represent that the Lease between Landlord and Tenant remains in full force and effect, and that neither Landlord nor Tenant is in default at the present time or in violation of any of the terms or conditions of the Lease.

 

7.                                      The undersigned individuals hereby certify that they have been duly authorized to execute and deliver this Second Amendment on behalf of the Landlord and Tenant, respectively.

 

8.                                      This Second Amendment may be executed in multiple counterparts and collectively shall be deemed one instrument.  The Parties hereto agree that facsimile signatures shall be deemed original signatures for all purposes.

 

9.                                      All capitalized terms herein, if not otherwise defined, shall have the meanings ascribed to them in the Lease.

 

10.                               This Second Amendment shall be binding upon and inure to the benefit of the Parties hereto and their respective successors, assigns and guarantors.

 

11.                               This Second Amendment, together with the original Lease, contain the entire agreement between the Parties with regard to the matters set forth herein and supersedes all prior discussions and understandings.

 

Except as modified above, all terms, covenants and conditions of the Lease shall remain in full force and effect.  In the event of a conflict between the terms and conditions of this Second Amendment and the terms and conditions of the Lease, the terms and conditions of this Second Amendment shall govern.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be duly executed under seal as of the day and year first above written.

 

	
Landlord:
    	
 
    	
Tenant:
    
	
Nivek Investments I, LLC
    	
 
    	
Karyopharm Therapeutics, Inc.
    
	
 
    	
 
    	
 
    
	
/s/ Dean Calivas 
    	
 
    	
/s/ Paul Brannelly 
    
	
Dean Calivas, Stonegate Group, LLC, as agent   
    	
 
    	
Paul Brannelly 
    
	
on behalf of Nivek Investments I, LLC
    	
 
    	
SVP, Finance & Admin
    

 

2

	
  

  	
  Exhibit A
  Second Floor Exsisting Premises Expansion Space First Floor

  

 

3

 

EXHIBIT B

 

Karyopharm Expansion
 Mercer Road, Natick

 

	
 
    	
 
    	
 
    	
 
    	
Cost
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Demolition &   Makesafe
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Remove carpeting and base
    	
 
    	
$
    	
720
    	
 
    
	
 
    	
 
    	
Remove and dispose of existing data   room wall
    	
 
    	
$
    	
880
    	
 
    
	
Carpentry
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Remove existing doors and infill   openings
    	
 
    	
$
    	
540
    	
 
    
	
 
    	
 
    	
Cut in and wrap new hallway opening   (no door)
    	
 
    	
$
    	
240
    	
 
    
	
 
    	
 
    	
Cut in new door openings (reusing   existing doors and frames)
    	
 
    	
$
    	
810
    	
 
    
	
 
    	
 
    	
Frame and insulate new full height   wails to create office
    	
 
    	
$
    	
2,574
    	
 
    
	
 
    	
 
    	
Drywall and 3 coats of mud on new   walls
    	
 
    	
$
    	
1,320
    	
 
    
	
 
    	
 
    	
Furnish and Install new 6-8x3-0 LH HM   door, leverset and frame
    	
 
    	
$
    	
900
    	
 
    
	
 
    	
 
    	
Furnish and install new commercial   locking door hardware
    	
 
    	
$
    	
396
    	
 
    
	
Finishes
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Patch ACT as required at new walls,   and at room changes
    	
 
    	
$
    	
1,045
    	
 
    
	
 
    	
 
    	
Patch walls at vinyl base
    	
 
    	
$
    	
240
    	
 
    
	
 
    	
 
    	
Furnish Carpeting & vinyl   base
    	
 
    	
$
    	
1,339
    	
 
    
	
 
    	
 
    	
Install New Carpeting and vinyl   basethroughout with floor prep to match (go over VCT)
    	
 
    	
$
    	
1,560
    	
 
    
	
 
    	
 
    	
Painting three new offices, doors and   common hallway
    	
 
    	
$
    	
2,460
    	
 
    
	
Mechanical
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cap existing ductwork feeds and   reconnect to old ductwork supply
    	
 
    	
$
    	
960
    	
 
    
	
 
    	
 
    	
Allowance to remove split AC unit   from existing Data room and roof
    	
 
    	
$
    	
960
    	
 
    
	
Electrical
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Relocate /rework light switch   locations
    	
 
    	
$
    	
1,200
    	
 
    
	
 
    	
 
    	
Allowance to ensure rooms are fed   from Karyopharm elec panel
    	
 
    	
$
    	
1,440
    	
 
    
	
 
    	
 
    	
Reprogram and test fire alarm devices
    	
 
    	
$
    	
480
    	
 
    
	
 
    	
 
    	
New Outlets in New Wall
    	
 
    	
$
    	
1,100
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
O&P &   Supervision & Insurance
    	
 
    	
 
    	
 
    	
$
    	
3,632
    	
 
    
	
Total   Estimate
    	
 
    	
 
    	
 
    	
$
    	
24,796
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excludes
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TelData by others
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Outlets to remain   as is
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
HVAC controls
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Assumed HVAC trunk   is usable, AHU is sized to feed these spaces
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lighting fixtures   to remain as is
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Using client   dumpster
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Permit
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Off Hours
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

4Exhibit 10.14

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission.  Double asterisks denote omissions.

 

 

RESEARCH AGREEMENT

 

This Research Agreement (this “Agreement”) is made as of the 18th day of July, 2011 (the “Effective Date”) by and between The Multiple Myeloma Research Foundation, Inc., a Connecticut non-stock corporation, with its principal place of business at 383 Main Avenue, 5th floor, Norwalk, CT 06851 (“MMRF”) and Karyopharm Therapeutics Inc., a Delaware corporation, with its principal place of business at 2 Mercer Road, Natick, MA 01760 (“Company”).  MMRF and Company are sometimes hereinafter referred to individually as the “Party” and together as the “Parties”.

 

WHEREAS, MMRF is a Section 501(c)(3) organization with a mission to find, support and promote improved treatment and development of a cure for multiple myeloma and to increase understanding and public awareness of the disease by, among other means, making grants or distributions to support research on multiple myeloma and similar blood diseases and efforts to educate the public about multiple myeloma.  To further this mission, MMRF provides research funding to entities that can demonstrate through MMRF’s peer review process that their proposed research holds scientific promise to advance MMRF’s effort to find treatments and cures for multiple myeloma; and

 

WHEREAS, COMPANY has submitted an application to MMRF for funding to conduct scientific research as more particularly described in Exhibit A; and

 

WHEREAS, COMPANY’S application has been approved by MMRF’s Scientific Review Committee, which approval is conditioned upon the execution of this Agreement.

 

WHEREAS, the Parties desire to enter into a relationship whereby MMRF will provide funding to Company to conduct research and development as described in the Research Program, as defined below, based on Company’s application to MMRF entitled “Small Molecule CRM1 Inhibitors for the Treatment of Multiple Myeloma.”

 

NOW THEREFORE, in consideration of the covenants set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as set forth below.

 

1.                                      DEFINITIONS.

 

1.1                               “Affiliate”, as to a Party, means any entity which controls, is controlled by, or is under common control with such Party.  For purposes of this definition, “control” shall mean (i) in the

 

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case of corporate entities, direct or indirect ownership of a majority of the stock or shares having the right to vote for the election of directors, and (ii) in the case of non-corporate entities, direct or indirect ownership of a majority of the equity interest with the power to direct the management and policies of such noncorporate entities,

 

1.2                               “Approval” shall mean, with respect to any country, all authorizations by the appropriate governmental entity or entities necessary for commercial sale of a Product in that country, including, without limitation and where applicable, approval of labeling, price, reimbursement and manufacturing.

 

1.3                               “Award” shall have the meaning set forth in § 2.1(a) of this Agreement.

 

1.4                               “Budget” shall have the meaning set forth in § 2.1(b) of this Agreement.

 

1.5                               “Change of Control” shall mean with respect to Company, the consummation of a transaction, whether in a single transaction or in a series of related and substantially contemporaneous transactions, pursuant to which a Third Party or Third Parties, none of which are stockholders of Company on the Effective Date:  (a) acquires (whether by merger, consolidation, or transfer or issuance of capital stock or otherwise) more than 50% of the capital stock or other equity interest of Company (or such surviving or resulting entity) resulting in direct remuneration to Company stockholders for their stock in the Company, or (b) acquires assets constituting all or substantially all of the assets of Company and its subsidiaries (as determined on a consolidated basis).

 

1.6                               “Claim” shall have the meaning set forth in §6.1 of this Agreement.

 

1.7                               “Commercially Reasonable Efforts” shall mean the level of effort and devoting the same degree of attentive diligence, expertise and resources that is substantially and materially consistent with industry standards for biotechnology companies of a similar size and at a similar stage as the Company in the research and develop of products at a similar stage and of similar potential as a Product where such research and development is technically feasible, and taking into account other relevant factors, including, technical, medical, clinical, efficacy, safety, manufacturing and third party intellectual property considerations that substantially impede research, development and commercialization of products.

 

1.8                               “Company” shall have the meaning set forth in the preamble to this Agreement.

 

1.9                               “Company Commercial Failure” shall mean a case or proceeding (a) under the bankruptcy laws of the United States now or hereafter in effect is filed against Company, or any successor to Research Program Intellectual Property Rights, or all or substantially all of its assets and such petition or application is not dismissed within sixty (60) days after the date of its filing or Company shall file any answer admitting and not contesting such petition, or (b) under the bankruptcy laws of the United States now or hereafter in effect or under any insolvency, reorganization, receivership, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at law or equity) is filed by Company, or any successor to Research Program Intellectual Property Rights, for all or substantially all of its assets.

 

1.10                        “Company Proposal” means the application attached as Exhibit A,

 

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1.11                        “Confidential Information” means all information of one Party possessed, obtained by, developed for or given by one Party to the other Party which the disclosing Party treats as confidential or proprietary at the time of disclosure including, without limitation, this Agreement, Program Inventions, research materials and developments, formulations, techniques, methodology, assay systems, formulae, procedures, tests, equipment, data, reports, know-how, sources of supply, patent positioning, relationships with consultants and employees, business plans and business developments, information concerning the existence, scope, results or activities of any research, development, manufacturing, marketing or other programs of either Party, and any other confidential information about or belonging to either Party’s suppliers, licensors, licensees, partners, affiliates, customers, potential customers, donors or others.  Notwithstanding anything to the contrary contained herein, the Parties hereby acknowledge that this Agreement and the terms hereof constitutes the Confidential Information of each Party, subject to Section 9.4.  Notwithstanding anything in this Agreement to the contrary, Program Inventions, Research Results, Research Reports and the information disclosed in Research Program Patents prior to their public disclosure shall be treated as Confidential Information of Company with Company as the disclosing Party and MMRF as the receiving Party.

 

1.12                        “Control” shall mean the legal authority or right to grant a license or sublicense of intellectual property rights, or to otherwise disclose proprietary or trade secret information.

 

1.13                        “Deliverables” shall have the meaning set forth in Section 2.1(a) of this Agreement.

 

1.14                        “Effective Date” shall have the meaning set forth in the preamble to this Agreement.

 

1.15                        “FDA” shall mean the U.S. Food and Drug Administration.

 

1.16                        “Field” shall mean the diagnosis, treatment, prevention or cure of multiple myeloma and its direct complications including but not limited to bone disease, renal dysfunction, anemia and amyloidosis, all as they are related to multiple myeloma.

 

1.17                        “First Commercial Sale” shall mean the date on which Company or its affiliate, transferee or successor first receives money or other consideration for a Product after the first Approval.

 

1.18                        “Indemnitee” shall have the meaning set forth in §6.1 of this Agreement.

 

1.19                        “Intellectual Property Rights” means any and all rights in and to discoveries, concepts, ideas, developments, specifications, methods, drawings, designs, flow charts, diagrams, models, formulae, procedures, processes, schematics, specifications, algorithms, apparatus, inventions, ideas, know-how, materials, techniques, methodologies, modifications, improvements, works of authorship and data (whether or not protectable under patent, copyright, trade secrecy or similar laws), including Patents, utility models, and registered and unregistered designs, including mask works, copyrights, trade secrets, design history, manufacturing documentation, and any other form of protection afforded by law to inventions, models, designs, works of authorship, databases or technical information and applications and registrations with respect thereto.

 

1.20                        “Interruption” shall occur if, at any time prior to the First Commercial Sale of the first Product, Company, its Affiliates, licensees, sublicensees, transferees, and/or any successor (taken

 

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as a whole) shall have ceased to conduct, or shall have ceased using Commercially Reasonable Efforts with respect to, the research, development and/or commercialization of all Products for a period of [**] consecutive days or more, and where all of the following conditions also apply:  (i) the foregoing activities were terminated for other than a scientific, medical, clinical, efficacy or safety failure, or manufacturing or third party intellectual property considerations that substantially impede research, development or commercialization (for clarity, a cessation of research, development or commercialization or cessation of use of Commercially Reasonable Efforts prior to the First Commercial Sale of the first Product for a scientific, medical, clinical, efficacy or safety failure or manufacturing or third party intellectual property considerations that substantially impede research, development or commercialization shall in no event constitute an Interruption); (ii) there is no good faith, reasonable plan to re-commence such Commercially Reasonable Efforts within [**] days, as evidenced by a written communication to MMRF immediately upon cessation of Commercially Reasonable Efforts for a period of [**] consecutive days explaining how and when such Commercially Reasonable Efforts will recommence and Commercially Reasonable Efforts do not re-commence within [**] days after such written communication; and (iii) a licensee for the rights with respect to at least one Product is not actively being sought such that at least one such license has not been consummated within [**] days after a cessation of Commercially Reasonable Efforts for [**] consecutive days.

 

1.21                        “Interruption License” shall mean an irrevocable (except as provided in Section 8.2(d) and 8.5(c)), exclusive (even as to Company) worldwide license, effective as of the Effective Date, which Company grants to MMRF with the right to sublicense, the subjects of which license are the Research Program Intellectual Property Rights, Program Inventions and Results, to develop, manufacture, have manufactured, use, have used, sell, offer to sell and import Products, as applicable.  The Interruption License shall only be exercisable pursuant to Section 8.5 in the event of an Interruption and provided that Company has not exercised its Repayment Election under Section 8.5(c).

 

1.22                        “Milestones” shall have the meaning set forth in §2.1(a) of this Agreement.

 

1.23                        “MMRF” shall have the meaning set forth in the preamble to this Agreement.

 

1.24                        “Net Sales” means the gross amount invoiced on sales of Product by Company and its Affiliates and Sublicensees and transferees of Program Inventions, less the following deductions with respect to the sale of such Product:  (i) normal trade, cash and quantity discounts and other customary discounts actually given to customers in the ordinary course of business; (ii) rebates, credits and allowances given by reason of rejections, returns, damaged or defective product or recalls; (iii) government-mandated rebates and any other compulsory payments, credits, adjustments and rebates actually paid or deducted; (iv) price adjustments, allowances, credits, chargeback payments, discounts, rebates, fees, reimbursements or similar payments granted to group purchasers, pharmacy benefit management companies, health maintenance organizations and any other providers of health insurance coverage, health care institutions (including hospitals), patient assistance or other similar programs, or to federal, state/provincial, local and other governments, including their agencies, or to wholesalers, distributors or other trade customers; (v) reasonable and customary freight, shipping, insurance and other transportation expenses, if actually borne by Company or its Affiliates or Sublicensees or transferees without reimbursement from any Third Party; (vi) sales, value-added, excise taxes, tariffs and duties, and other taxes and

 

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government charges directly related to the sale, delivery or use of Product (but not including taxes assessed directly against the income derived from such sale) net of any credits or allowances received by Company or its Affiliates or Sublicensees or transferees with respect to such taxes or charges; and (vii) any item, substantially similar in character or substance to any of the foregoing, calculated in accordance with GAAP consistently applied and customary in the pharmaceutical industry to be deducted in the definition of net sales in a license agreement of this type.

 

Notwithstanding anything in this Agreement to the contrary, the transfer of a Product between or among Company and its Affiliates will not be considered a sale.

 

In the event a Product is sold in the form of a Combination Product, as defined below, then the Net Sales for any such Combination Product shall be determined by multiplying the Net Sales of the Combination Product during the applicable royally reporting period, by the fraction, A/(A+B), where A is the weighted (by sales volume) average sale price of the Product component when sold separately in finished form in the country in which the Combination Product is sold and B is the weighted (by sales volume) average sale price of the other active pharmaceutical ingredients or significant components included in the Combination Product when sold separately in finished form in the country in which the Combination Product is sold, in each case during the applicable royalty reporting period or, if sales of both the Product component and the other active pharmaceutical ingredients or significant components did not occur in such period, then in the most recent royalty reporting period during the preceding twelve (12) months in which sales of both occurred, if any.  In the event that such average sale price cannot be determined for both the Product and all other active pharmaceutical ingredients or significant components included in the Combination Product, then the Parties will in good faith discuss and agree on a pro-rata allocation of the Net Sales that reflects the Product’s contribution to the Combination Product on an equitable basis.

 

1.25                        “Party” and “Parties” shall have the meaning set forth in the preamble to this Agreement.

 

1.26                        “Patents” means patents and patent applications and improvements thereto, including all foreign counterparts, all substitutions, extensions, reissues, renewals, divisions, continuations and continuations in part relating to such patents and their foreign counterparts.

 

1.27                        “Product” means any product that incorporates a Program Invention that may be sold for money.

 

1.28                        “Program Inventions” means all inventions that are conceived, created, discovered, developed, generated, made or reduced to practice or tangible medium of expression in the performance of the Research Program, whether solely by one or more employees or consultants of Company, solely by one or more employees or consultants of MMRF, or jointly by one or more employees or consultants of Company or its affiliates and one or more employees or consultants of MMRF, in each case relating to specifically the Research Program, together with all Intellectual Property Rights in or to such inventions.

 

1.29                        “Repayment Election” shall have the meaning set forth in Section 8.5(c) of this Agreement.

 

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1.30                        “Research Program” means the research and development activities described in the Company Proposal.

 

1.31                        “Research Program Intellectual Property Rights” means Intellectual Property Rights emanating or derived from the Research Program.

 

1.32                        “Research Program Patents” means Patents emanating or derived from the Research Program.

 

1.33                        “Research Reports” shall have the meaning set forth in §2.2(a) of this Agreement.

 

1.34                        “Research Results” means all data sets, data analyses, reports detailing all optimized conditions and procedures, test results, laboratory notes, techniques, know-how, and any other results that are developed in the performance of the Research Program.

 

1.35                        “Research Review Committee” or “RRC” means the oversight group described in §2.3.

 

1.36                        “Royalty Cap” shall have the meaning set forth in §4.1 (a).

 

1.37                        “Sublicense Income” means upfront license fees and milestone payments but not including royalties received by Company or any of its Affiliates from a Sublicensee specifically for the grant of a license or sublicense to a Program Invention or to develop or commercialize a Product (or if rights in addition to a license or sublicense to a Program Invention or to develop or commercialize a Product are granted to such Sublicensee, then a portion of such payments reasonably allocated to the grant of rights with respect to such Program Invention or Product), but specifically not including amounts received as the purchase price for debt or equity securities or as reimbursement for the actual costs of research, development or commercialization activities.

 

1.38                        “Sublicensee” means a Third Party to whom Company or any of its Affiliates grants an express license or sublicense under Research Program Intellectual Property Rights to develop or commercialize Products, provided that the term “Sublicensee” does not include any wholesaler or third party distributor who resells a Product purchased from Company or any of its Affiliates or other Sublicensees in final finished form (but not necessarily final packaged and labeled form).

 

1.39                        “Term” shall have the meaning set forth in §8.1.

 

1.40                        “Third Party” means any individual, corporation, partnership, association, joint-stock-company, trust, unincorporated organization or government or political subdivision thereof which is not a party to this Agreement and which is not an Affiliate of a Party to this Agreement.

 

2.                                      PERFORMANCE OBLIGATIONS.

 

2.1                               Funding.

 

(a)                                 The Award and to Distribution.  MMRF agrees to provide funds to Company to conduct the Research Program in the amount of $1,000,000.00 (the “Award”).  The Award will be payable in increments corresponding to the completion of particular phases or the achievement of

 

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particular activities of the Research Program (“Milestones”) and the delivery of tangible results of the Research Program (“Deliverables”) as provided in Exhibit B attached hereto and made a part hereof.  Each payment due by MMRF is subject to Company’s achievement of the corresponding Milestone and Deliverable for such payment as set forth in Exhibit B as reasonably determined by the MMRF.  The payment date of any scheduled funding payment as set forth in Exhibit B may be accelerated or delayed, by mutual agreement of the Parties.  MMRF shall make each payment in accordance with Exhibit B.

 

(b)                                 Award Uses.  The Award shall be used by Company exclusively for the Research Program and in accordance with the budget attached as Exhibit C (the “Budget”).  Company agrees to maintain books and records documenting the expenditure of Award funds in accordance with Generally Accepted Accounting Principles (“GAAP”) and will make these books and records relating to Award funds available to MMRF and its representatives for review under paragraph (c), upon reasonable request, during the term of this Agreement and for a period of [**] years following expiration or termination of this Agreement.

 

(c)                                  Audit Rights.  MMRF will have the right, during normal business hours and upon at least [**] business days’ written notice, but not more than [**] a year, to have a representative inspect Company’s records as they relate to the Award to verify that Company has complied with Section 2.1(b).  The representative will be required to agree in writing to comply with confidentiality restrictions with respect to Company information at least as stringent as those set forth m this Agreement and to provide a non-confidential summary of the results of the audit to both of the Parties.  MMRF will bear the expenses for such audit unless the audit reveals that any of the Award funds were net used by Company in accordance with Section 2.1(b) and, in such event, Company agrees to repay MMRF such reasonable audit costs.

 

(d)                                 Donor Designated Funds.  Where funding is, in part or whole, provided by a donor to MMRF who requests that the donated funds be restricted for support of Company, Company agrees to participate in promotional/publicity activities (e.g. meeting the Board of Trustees of the donor’s organization, being interviewed for their newsletter, etc.) upon reasonable advance notice; however, Company shall have no obligation to publish or disseminate Confidential Information.  Company shall acknowledge the support of MMRF in all such activities related to the Research Program.

 

2.2                               Reports.

 

(a)                                 Research Reports.  During the Research Program, Company shall submit on a [**] basis at least [**] days prior to the meeting of the RRC, research reports, which shall include the Research Results (“Research Reports”) generated since the last Research Report.  Chemical structures may be, at Company’s discretion, disclosed in Research Reports, but shall not be required to be so disclosed.  Thereafter, Company shall provide to MMRF [**] an update of the progress of a Product since the previous report.  As reasonably requested by MMRF to explain and discuss the Research Reports, Company shall:  (i) meet with MMRF representatives, in person or by phone; and (ii) allow site visits.  MMRF shall have the right to have any Research Report or other data submitted by Company reviewed and validated by external consultants and may include external consultants in any meeting, teleconference or site visit, subject, in each case, to execution

 

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by such external consultants of appropriate confidentiality agreements in form and substance reasonably acceptable to the Company.

 

(b)                                 Financial Reports.  Unless the Company’s shares are publicly traded, Company shall submit its financial reports to MMRF, on [**] basis, during the Term of this Agreement.  Furthermore, if, in an effort to raise investment capital, Company issues an offering prospectus or private placement memorandum, during the Term, it shall promptly submit a copy of such document to MMRF.  Company shall make its financial representatives available to MMRF, in person or by phone, to explain and discuss such financial reports or documents, as reasonably requested by MMRF.  MMRF shall have the right to have any financial report or document submitted by Company reviewed by external consultants and may include external consultants in any meeting or teleconference, subject to execution by such external consultants of appropriate confidentiality agreements in form and substance reasonably acceptable to the Company.

 

(c)                                  Status Reports.  Company shall notify MMRF in writing during the Term of any events that may materially affect the financial condition of Company, or any event that may impair its ability to conduct the Research Program.  Company shall make a representative available, in person or by phone, to explain and discuss such notifications, as reasonably requested by MMRF.

 

2.3                               Research Review Committee.

 

(a)                                 Formation; Composition.  The Parties shall form a Research Review Committee (“RRC”) which shall serve as a forum for communication and discussion of the activities under this Agreement.  Each Party shall appoint to the RRC an equal number of team members, as mutually agreed upon by the Parties, at minimum [**], that have the requisite skills in the disciplines necessary for performance of activities under this Agreement.  Each Party may change its RRC members at any time by written notice to the other.  One (1) representative from each Party shall be designated as the primary contact for such team.  Notwithstanding the formation of the RRC or anything in this Agreement to the contrary, Company shall have sole decision-making authority with respect to all aspects of the Research Program, provided, that any amendment to this Agreement shall require the written approval of both Parties.

 

(b)                                 Meetings.  The RRC shall meet at such times and locations as are agreeable to a majority of the RRC members, but at a minimum [**].  RRC meetings may take place in person or through video or telephone communications.  At the initial meeting of the RRC, the RRC shall establish procedures for its meetings and activities.  At each meeting of the RRC, the Parties shall provide an update on the status of the activities conducted under this Agreement.  Other personnel of each Party may attend RRC meetings.  Each Party shall bear the expense of participation of its respective RRC members and other personnel in RRC meetings.  Written minutes shall be kept of all RRC meetings, shall be prepared by a Company representative and shall include a description of material decisions made at such meetings.  Meeting minutes shall be distributed no later than [**] days after each meeting and MMRF shall have the right to recommend changes to the minutes as it deems appropriate, The first meeting of the RRC shall be held within [**] days of the Effective Date.  The quorum for RRC meetings shall be [**] members, and shall include at least [**] from each Party.

 

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(c)                                  Recommendations and Decision-Making.  The RRC shall make recommendations and act by unanimous vote within the scope of its authority, with the RRC members of Company collectively having one (1) vote and the RRC members of MMRF collectively having one (1) vote.  Disagreements among the members of the RRC within the scope of its authority will be referred to the Chief Executive Officers or other senior management of the Parties to resolve the matter.  If the dispute cannot be resolved within [**] days after such referral, it shall be resolved in accordance with Section 11.8.

 

2.4                               Conduct of Research Program.  Company shall be solely responsible for the conduct of the Research Program.  Company shall perform its obligations under the Research Program in good faith, using Commercially Reasonable Efforts and in compliance with all applicable federal, state or local laws, regulations and guidelines governing the conduct of such work.  Company shall:  (a) maintain complete and accurate records of all Research Results, (b) provide to the RRC all Research Reports and, subject to the next sentence, other information requested by the RRC for it to monitor progress of the Research Program, or deemed relevant by an RRC member for purposes consistent with this Agreement; (c) consider, review and propose to the RRC any amendments or modifications to the Research Program from time to time in such manner as may be appropriate based on any interim Research Results, subject, in each case, to Company’s sole decision-making authority and (d) review, substantiate and demonstrate to the RRC the accomplishment of Milestones and Deliverables as set forth In Exhibit B.  Notwithstanding anything in this Agreement to the contrary, in no event shall Company be required to disclose or otherwise make available to MMRF any Confidential Information of Company that was not developed in the course of the Research Program, including, but limited to compound structure information.  For the sake of clarity, and not in limitation of the foregoing, in no event shall compound structure information created prior to tire Effective Date of this Agreement be considered part of Research Results, and, provided further that, notwithstanding anything in this Agreement to the contrary, Company shall be under no obligation to disclose compound structure information created or developed in the conduct of the Research Program unless and until such information is made publicly available by Company, including through publication.

 

2.5                               Standard of Conduct.  Company agrees to use Commercially Reasonable Efforts, including but not limited to committing the necessary staff, laboratories, offices, equipment and other facilities, to conduct the Research Program substantially in accordance with Exhibit A with the goals of achieving the Milestones and Deliverables as set forth in Exhibit B.  In the event that MMRF has a reasonable basis to believe that Company is not using Commercially Reasonable Efforts as required hereunder, MMRF shall give written notice thereof to Company specifying the basis for such belief.  MMRF and Company shall negotiate in good faith to attempt to mutually resolve the issue.  If the Parties cannot resolve the issue informally within [**] days of Company’s receipt of the written notice, MMRF may at its election, (a) terminate this Agreement pursuant to Section 8.2(a) of this Agreement or (b) submit the issue for dispute resolution as set forth in Section 11.8.  The foregoing remedies of MMRF shall not be deemed a limitation on the right of Company to dispute any finding of breach under Section 8.2(b).

 

2.6                               Site Visit(s).  MMRF may perform site visits of Company during the term of the Research Program, as deemed appropriate by MMRF, during normal business hours, at any time or times, but not more than [**] upon reasonable notice, to review and assess progress and results of the Research Program.

 

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2.7                               Interruption or Delay of Research Program.  If the Research Program, including a human subject research clinical trial, is to be interrupted or delayed for a period of [**] days or more, Company, within [**] days of becoming aware of the need to interrupt or delay the Research Program, shall provide the RRC and MMRF with notice (such notice to MMRF to be in accordance with Section 11.1 hereof) indicating (a) that the work will be interrupted or delayed, (b) the reason for the interruption or delay, and (c) the anticipated date upon which the work will resume.

 

2.8                               Non-debarment.  Company represents that it is not debarred by the FDA and that it does not use in any capacity, directly or indirectly, the services of any individual or entity which is debarred by the FDA pursuant to 21 USC § 335a for any of the services or research in the conduct of the Research Program hereunder.  Company will promptly disclose in writing to MMRF if any individual or entity providing services in the conduct of the Research Program hereunder is debarred or if any action, claim, investigation or legal or administrative proceeding is pending or threatened (“debarment action”) relating to the debarment of Company or any individual/entity performing services in connection with the Research Program upon Company’s receipt of notice of such debarment action.  In the event of any such debarment or notice of debarment action MMRF shall have the right to terminate this Agreement immediately pursuant to Section 8.2(b) of this Agreement.

 

3.                                      OWNERSHIP RIGHTS.

 

3.1                               Ownership Rights in Pre-Existing Works.  Each Party will retain ownership and control of their respective works of authorship, inventions, know-how, information, and data, and all Intellectual Property Rights therein, that were in existence as of the Effective Date or are later generated outside of the scope of the performance by each Party of its obligations under this Agreement.

 

3.2                               Ownership Rights in Program Inventions.  Company shall own Program Inventions.  MMRF hereby assigns to Company all of MMRF’s right, title and interest in any Program Inventions.  MMRF agrees to reasonably assist Company in securing for Company any patents, copyrights or other proprietary rights in such Program Inventions, and agrees to take such actions and execute such documents as Company may reasonably request in connection with providing such assistance, or effecting the foregoing assignment, or otherwise to vest in Company all right, title and interest in such Program Inventions.  MMRF shall be compensated for all of its reasonable out-of-pocket costs and expenses, including the time spent by MMRF employees, contractors, agents and attorneys, associated with such requested assistance.

 

3.3                               Protection and Perfection of Rights.  Company shall be responsible for all costs incurred in the preparation, prosecution and maintenance of Intellectual Property Rights in the Program Inventions.  Decisions on the preparation, prosecution and maintenance of Intellectual Property Rights in Program Inventions shall be made by Company in its sole discretion.  MMRF will assist Company in any reasonable manner in the procurement and maintenance of all Intellectual Property Rights in the Program Inventions.  Without limiting the foregoing, MMRF will execute, upon Company’s request, any applications or other documents that may be necessary to protect or perfect Company’s Intellectual Property Rights in the Program Inventions.  MMRF will ensure that its employees and consultants who participate in activities under this Agreement are obligated

 

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to assign or otherwise transfer all right, title and interest in and to all Intellectual Property Rights in the Program Inventions to MMRF or its designee and will, as requested by Company, obtain for Company the execution of all necessary applications or other documents therefore from any employee or consultant.

 

3.4                               Meeting Regarding Development.  Upon request of MMRF after the end of the Research Program until First Commercial Sale, Company shall make appropriate Company employees or agents available to MMRF at least [**] for meetings related to Product development, which meetings shall occur in response to the [**] reports that Company shall submit to MMRF after the Research Program.

 

3.5                               Publication.

 

(a)                                 Publication.  Company shall have the sole right to publish the Research Results.  If MMRF believes that the Research Results have scientific significance that would be of interest to the broader research community, MMRF shall notify Company in writing, and Company shall consider in good faith MMRF’s comments, provided that Company shall have the final decision as to whether and when to publish or otherwise publicly disseminate such Research Results together with the underlying data.  Without limiting the foregoing, with respect to any clinical trial that is the subject of the Research Program, Company shall register the clinical trial on www.clinicaltrials.gov or a substantially equivalent website.  Additionally, Company will be exclusively responsible for updating and/or amending such registration as appropriate.  Company shall acknowledge the support of MMRF in all publications disclosing the Research Results.

 

(b)                                 Access.  Company will consider in good faith requests from Multiple Myeloma researchers to access the Research Results, and to be provided with materials generated in the conduct of the Research Program, other than Product (“Research Materials”) in a reasonable quantity and at cost, for academic internal research purposes related to the discovery of treatments for multiple myeloma, and permission related to such requests shall not be unreasonably withheld by Company, provided that, notwithstanding the foregoing (i) in no event shall Company have any obligation to provide access to any Research Results prior to publication in a peer reviewed journal or presentation by Company at a public meeting or to supply any Research Materials if the structure of such Research Materials has not been disclosed by Company in a peer reviewed publication or presentation by Company at a public meeting; (ii) in no event shall Company be obligated to provide Research Materials for any research that is similar to research being conducted internally by Company or that is being conducted by a third party with material or funding provided by Company; and (iii) Company will not have an obligation to disclose Research Results or supply Research Materials to any researcher unless and until Company and the institution that employs such researcher are able to agree on a reasonable, mutually acceptable confidentiality agreement or material transfer agreement, as the case may be.  For the sake of clarity, and without limiting the foregoing, the parties agree that Company may withhold its consent to providing access to Research Results or to supplying Research Materials to a researcher if, in the Company’s reasonable determination, the intended use of the Research Results or Research Materials by such researcher would be contrary to the best interests of the Company or may negatively impact the Company, its technology, products or programs, or its research, development or commercialization efforts.

 

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4.                                      PAYMENTS TO MMRF.

 

4.1                               Payments to MMRF.

 

(a)                                 Royalty For Product Success.  Company shall pay to MMRF a royalty equal to [**] percent ([**]%) of Net Sales of all Products, provided, that, Company shall have no further payment obligation under this Section once the aggregate amount paid to MMRF under this Section 4.1(a) and under Section 4.1(b) has reached an amount equal to the Royalty Cap, as defined in the next sentence.  For purposes of this Agreement, the “Royalty Cap” shall mean an amount equal the lesser of (i) [**] times the value of the Award payments actually paid to Company under this Agreement, or (ii) $[**], except (i) if Net Sales of Product are equal to or exceed [**] Dollars ($[**]), the Royalty Cap will equal the lesser of [**] times the value of the Award payments actually paid to Company or [**] Dollars ($[**]) and (ii) if Net Sales of Product are equal to or exceed [**] Dollars ($[**]), the Royalty Cap shall equal the lesser of six (6) times the value of the Award payments actually paid to Company or Six Million Dollars ($6,000,0000).  Payments under this Section 4.1(a) shall be made quarterly, beginning within [**] days after the calendar quarter in which the First Commercial Sale of a Product occurs and within [**] days of each quarter thereafter until the Royalty Cap is reached.

 

(b)                                 Transfer Royalty.  Subject to the next sentence, Company shall pay MMRF a royalty equal to [**] percent ([**]%) of any Sublicense Income received by Company or any of its Affiliates from a license or transfer of Product rights or a Program Invention, and in the event of a Change of Control, at the time that the Change of Control occurs, [**] percent ([**]%) of the value received by Company or its then existing shareholders as a result of such Change of Control (the “Change of Control Payments”).  Notwithstanding anything in this Agreement to the contrary, (i) the preceding sentence shall only apply to Sublicense Income and Change of Control Payments received by Company after December 31, 2012; (ii) the Company’s payment obligation to MMRF under Section 4.1(b) with respect to Sublicense Income and Change of Control Payments received in 2013 shall not exceed the lesser of [**] of the funding actually transferred from MMRF to Company pursuant to this Agreement at the time that the amount to MMRF becomes due or $[**]; (iii) the total amount paid to MMRF under this Section 4.1(b) shall not exceed the lesser of [**] the Royalty Cap or $[**]; and (iv) the Company shall have no further payment obligation under this Section 4.1(b) upon such time as the aggregate amount paid to MMRF under this Section 4.1(b) and under Section 4.1(a) has reached an amount equal to the Royalty Cap.  Any such amounts due under this Section shall be paid within [**] days from the date Company receives the relevant amounts from the Third Party or Third Parties whose payments give rise to MMRF’s rights hereunder.

 

4.2                               Payments to Company.  In the event that pursuant to Sections 8.4 or 8.5 the Interruption License becomes effective and thereafter is maintained by MMRF, in lieu of any other royalties pursuant to this Agreement (other than royalties or payments under Section 4.1 previously paid to Company to MMRF in accordance with this Agreement), the Parties shall share equally, subject to this Section 4.2, any amount MMRF receives with respect to any Product or Program Invention (including amounts received in connection with sublicenses of the Interruption License).  MMRF’s share shall increase and Company’s share shall decrease by [**] percentage points for each [**] Dollars ($[**]) MMRF spends in addition to the Award with respect to the research, development and/or commercialization of any Product or Program Invention after the effective

 

12

 

date of the Interruption License, except that in no event shall Company’s share decrease below [**] percent ([**]%) of the amount which MMRF receives with respect to the Product of Program Invention which is the subject of the Interruption License.  Thus, for example, if MMRF’s expenditures after the effective date of the Interruption License are [**] Dollars ($[**]), MMRF’s share will increase to [**] percent ([**]%) and Company’s share will decrease to [**] percent ([**]%).

 

5.                                      REPRESENTATIONS AND WARRANTIES; COVENANTS.

 

5.1                               General Representations and Warranties.  Bach Party represents and warrants:

 

(a)                                 Corporate Power and Authorization.  It is duly organized and validly existing under the laws of the state of its organization, and has full power and authority to execute and deliver this Agreement and to perform all of its obligations hereunder;

 

(b)                                 Binding Agreement.  This Agreement is a legal and valid obligation binding upon it and enforceable in accordance with its terms;

 

(c)                                  No Conflict.  The execution, delivery and performance of this Agreement by such Party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a Party or by which it may be bound, nor violate any law or regulation of any court, governmental body, or administrative or other agency having jurisdiction over it; and

 

(d)                                 Resources.  It has adequate resources, both financial and otherwise, to perform its duties hereunder.

 

5.2                               Company Warranties.  Company represents, warrants and covenants to MMRF that it (a) has the knowledge, skills and experience to perform the Research Program, and (b) has and shall maintain during the term of this Agreement all licenses, permits and other approvals and authorizations required to conduct the Research Program and shall do so in conformity with all applicable laws and regulations.

 

5.3                               Disclaimer.  EXCEPT AS PROVIDED IN SECTIONS 5.1 AND 5.2, EACH PARTY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE RESEARCH PROGRAM, RESEARCH RESULTS, PROGRAM INVENTIONS OR ANY PRODUCT RESULTING FROM THIS AGREEMENT OR OTHERWISE, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, TITLE AND FITNESS FOR A PARTICULAR PURPOSE OR USE.

 

5.4                               No Restrictions.  Nothing in this Agreement shall restrict MMRF from funding other research and development efforts, including without limitation efforts by other researchers that fall within the scope of the Research Program or the Field.

 

6.                                      INDEMNIFICATION.

 

6.1                               Company Indemnification.  Company agrees to indemnify, hold harmless and defend MMRF and its directors, officers, representatives, employees and agents and their respective

 

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successors, heirs and assigns (each an “Indemnitee”) from and against any and all claims, losses, expenses, demands, suits, liability or damage for personal injury, property damage or otherwise, including reasonable attorneys’ fees, (collectively “Claims”), incurred in connection with any third party suit arising directly or indirectly from, relating to, or resulting from (a) any research performed by Company under this Agreement, including research undertaken by one or more investigators or subcontractors pursuant to one or more agreements between Company and its subcontractors and investigators, (b) the development, manufacturing, marketing or sale of any Product by Company, its Affiliates, sublicensees and customers, (c) any claim that Company’s conduct of the Research Program infringes or misappropriates intellectual property of any Third Party, (d) any material breach of Company’s representations, warranties, covenants or obligations under this Agreement, (e) the conduct of Company’s business or operations outside of the Research Program, or (f) the use, nonuse, representation, disclosure or nondisclosure of any Research Results or Program Inventions by or on behalf of Company or any of its Affiliates or sublicensees.

 

Notwithstanding the foregoing, Company shall have no obligations pursuant to this Agreement to defend or Indemnify MMRF from any liability, loss, damage or expense to the extent it directly results from:  (a) the negligence or willful misconduct of MMRF or any of its Affiliates or any of their respective agents, officers or employees, (b) any material breach by MMRF of its representations, warranties, covenants or obligations under this Agreement or (c) any activities conducted by MMRF or its Affiliates or licensees under the Interruption License.

 

6.2                               Indemnification Procedures.  In the event of any Claim for which any Indemnitee is or may be entitled to indemnification hereunder, the Indemnitee shall provide prompt written notice to the Company describing the nature of the Claim, and may, at its option, require Company to defend such Claim at Company’s sole expense.  Company may not agree to settle any such Claim without the Indemnitee’s express prior written consent, such consent not to be unreasonably withheld.  An Indemnitee may not settle any Claim for which indemnification may be sought without Company’s prior written consent.

 

6.3                               Limitation of Liabilities.  NOTWITHSTANDING ANY OF THE TERMS OF THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES OR LOST PROFITS ARISING OUT OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

7.                                      INSURANCE PROTECTION.

 

Company shall obtain and maintain during the term of this Agreement liability, comprehensive, and workers’ compensation insurance with a reputable insurance company to protect against those insurable risks that Company may incur in connection with the performance of its obligations under tins Agreement.  Company will provide, upon request, evidence of any such policies of insurance.  Insufficient certificate of insurance or self-insurance coverage shall not relieve Company of its indemnification obligations under Section 6.1.

 

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8.                                      TERM; TERMINATION; INTERRUPTION; SURVIVAL.

 

8.1                               Term.  This Agreement will begin on the Effective Date and, unless terminated sooner as provided in this Section 8, end upon completion of all activities under the Research Program (the “Term”).

 

8.2                               Termination Events.

 

(a)                                 Without Cause.  Beginning one year after the Effective Date, either Party shall have the right to terminate this Agreement without cause by providing the non-terminating Party with at least thirty (30) days’ prior written notice of termination, provided that neither Party will exercise the foregoing right other than for good reason related to the Research Program and only after discussion is held between the chief executive officers of both parties.

 

(b)                                 With Cause.  In the event either Party defaults or breaches any material obligations of this Agreement, the non-breaching Party shall provide written notice to the breaching Party of such breach in accordance with Section 11.1 hereof and accord the breaching Party [**] days from the date the notice is deemed to have been received by the breaching Party in accordance with Section 11.1 to correct such breach.  If such breach is not corrected within such [**] day period, the non-breaching Party may terminate this Agreement.

 

(c)                                  Company Commercial Failure.  MMRF’s remedies for a Company Commercial Failure shall only be pursuant to Section 8.4 of this Agreement, and, if a Company Commercial Failure occurs during the Term of this Agreement MMRF shall have no obligation to make any additional payments to Company pursuant to Section 2 of this Agreement after the date of a Company Commercial Failure.

 

(d)                                 Interruption.  An Interruption during the Term of this Agreement shall be a default or material breach of this Agreement, and MMRF’s remedies for an Interruption shall be pursuant to Section 8.3(b) only and Section 8.5 shall not apply, and the Interruption License shall terminate.  An Interruption after the Term of this Agreement shall not be a default or material breach of this Agreement, but instead MMRF’s remedies shall be pursuant to Section 8.5 of this Agreement.

 

8.3                               Effects of Termination.

 

(a)                                 By MMRF pursuant to Section 8.2(a) or by Company pursuant to Section 8.2(b).  Upon the expiration or earlier termination of this Agreement by MMRF pursuant to Section 8.2(a) or by Company pursuant to Section 8.2(b), MMRF shall compensate Company for the work the Company has completed up to the date of termination by paying Company the balance of any Award funds owed for each completed Milestone prior to the receipt of notice of termination.  However, such payment, together with all other payments made pursuant to this Agreement, shall not exceed the Award provided for in Section 2 of this Agreement.  In the event of any such termination, Company shall have no further obligations and shall make payments to MMRF pursuant to Section 4 of this Agreement; however, in the event of a termination by MMRF pursuant to Section 8.2(a), MMRF shall be entitled to payments pursuant to Section 4 of this Agreement.

 

(b)                                 By Company pursuant to Section 8.2(a) or by MMRF pursuant to Section 8.2(b).  Upon early termination of this Agreement by Company pursuant to Section 8.2(a) or by

 

15

 

MMRF for breach by Company pursuant to Section 8.2(b), Company shall, within [**] days after the date of such termination, refund to MMRF all Award funds paid by MMRF to Company and the following additional provisions will apply:  (i) MMRF shall have no further payment obligations to Company, and (ii) Company’s obligation to pay MMRF royalties pursuant to Section 4 of this Agreement shall survive termination pursuant to this Section 8.3(b) with all such payment obligations to MMRF to be based on the amounts actually transferred to MMRF prior to termination of this Agreement.

 

(c)                                  Effect of Termination.  Upon termination of this Agreement by either Party, with or without cause, each Party shall return to the other Party, upon the other Party’s request, all tangible items of the other Party in its possession or under its control evidencing the Confidential Information of the other Party, provided, that neither Party shall be required to return or destroy automatically created copies of the other Party’s Confidential Information stored on system back-up media.  Nothing in this Section 8.3 shall limit the legal remedies otherwise available to a Party terminating this Agreement pursuant to Section 8.2(b).  The expiration or earlier termination of this Agreement will not affect any rights or claims of a Party hereunder that accrued prior to the date of such expiration or earlier termination.

 

8.4                               Company Commercial Failure.

 

(a)                                 Effect of a Company Commercial Failure.  For purposes of this Agreement, a Company Commercial Failure shall be treated as an Interruption with the rights and obligations of the Parties as specified in Section 8.5.

 

(b)                                 Agreement of Transferees.  In the event that Company has transferred all of or certain of its rights and obligations to develop and commercialize a Product at any time after the Effective Date, Company represents that the transferee, as a condition to entering into such transfer, shall have agreed that a Company Commercial Failure shall apply to such transferee and such transferee shall be subject to the obligations of any Interruption License granted hereunder.

 

(c)                                  Section 365(n).  The Interruption License set forth in Section 8.5 shall be deemed to constitute intellectual property insofar as Section 365(n) of the U.S. Bankruptcy Code applies.  Company agrees that MMRF, as a licensee of such rights, shall retain and may exercise all of its rights and elections under the Bankruptcy Code; provided, however, that nothing in this Agreement shall be deemed to constitute a present exercise of such rights and elections.

 

8.5                               Interruption.

 

(a)                                 General.  Effective as of the date of MMRF’s election under Section 8.5(c) following the occurrence of an Interruption, provided the Company has not exercised its Repayment Election, Company grants to MMRF automatically, without any further action on the part of Company, an Interruption License.  For the sake of clarity, MMRF shall not be entitled to an Interruption License in the event Company exercises its Repayment Election under Section 8.5(c).

 

(b)                                 Notice.  Upon occurrence of an Interruption after the Term of this Agreement, either Party shall serve a notice of Interruption on the other Party.  Any dispute over the occurrence of an Interruption shall be resolved pursuant to Section 11.8.

 

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(c)                                  Effect of Interruption; Repayment Option.  An undisputed Interruption, or Interruption determined pursuant to Section 11.8, shall entitle MMRF to the Interruption License by delivery of written notice to Company and to receive, upon MMRF’s demand, all materials and data generated in the performance of the Research Program, including Program Inventions and Research Results, and all other materials and data that Company Controls that are necessary to practice the Interruption License but solely to the extent not reasonably able to be replicated or substituted by MMRF or its sublicensee, and Section 4.2 shall apply except that, notwithstanding anything in this Agreement to the contrary, Company, may, in lieu of granting the Interruption License, re-pay the amount of the Award actually paid by MMRF to Company under this Agreement (less any amount previously paid to MMRF under Section 4) (the “Repayment Election”), and, in the event of Company’s exercise of its Repayment Election, MMRF shall retain its rights to royalty payments from Company pursuant to Section 4 which shall be calculated based on the amounts actually awarded by MMRF to Company prior to Company’s exercise of the Repayment Election.

 

(d)                                 Agreement of Transferees.  In the event that Company has transferred all of or certain of its rights and obligations to develop and commercialize a Product at any time after the Effective Date, Company represents that the transferee, as a condition to entering into such transfer, shall have agreed that it shall be subject to the obligations of any Interruption License granted hereunder.

 

8.6                               Survival.  Sections (“§”) §3, §4 (except in the event of a termination by the Company for breach by MMRF under Section 8.2(b)), §5, §6, §8.2(c), §8.2(d), §8.3, §8.4, §8.5, §8.6 §9, §10, §11.1, §11.2, §11.3, §11.5, §11.8 and §11.10 shall survive the expiration or termination of this Agreement.

 

9.                                      CONFIDENTIAL INFORMATION.

 

9.1                               Confidentiality Obligations.  Each Party will at all times, and notwithstanding any termination or expiration of this Agreement, hold in confidence and not disclose to any Third Party Confidential Information of the other Party, except as approved in writing by the other Party to this Agreement, and will use the Confidential Information of the other Party for no purpose other than the purposes expressly permitted by this Agreement.  Each Party will only permit access to Confidential Information of the other Party to those of its employees, consultants, agents, and attorneys having a need to know and who are bound by confidentiality obligations and restrictions on use at least as restrictive as those contained herein.  The obligations in this Section 9.1 will terminate [**] years from the date of expiration or termination of this Agreement in accordance with Section 8.2.

 

9.2                               Exceptions to Confidentiality Obligations.  A Party’s obligations under this Agreement with respect to any portion of the other Party’s Confidential Information will terminate when the Parry that is subject to such obligations can document in writing that such information:  (a) entered the public domain through no fault of such Party; (b) was in such Party’s possession free of any obligation of confidence at the time it was communicated to such Party by the other Party or generated under this Agreement, as the case may be; (c) it was rightfully communicated to such Party free of any obligation of confidence subsequent to the time it was communicated to such Party by the other Party or generated under this Agreement, as the case may be; or (d) it was

 

17

 

developed by employees or agents of such Party independently of and without reference to any information communicated to such Party by the other Party.

 

9.3                               Authorized Disclosure.  Notwithstanding anything to the contrary, a Party will not be in violation of Section 9.1 with regard to a disclosure of the other Party’s Confidential Information that is in response to a valid order by a court or other governmental body or necessary to comply with applicable law or governmental regulations, provided that if such Party is required to make any such disclosure of the other Party’s Confidential Information it will to the extent practicable give reasonable advance written notice to the other Party of such disclosure requirement in order to permit the other Party to seek confidential treatment of or to limit the Confidential Information required to be disclosed.

 

9.4                               Company’s Publication Rights.  Nothing in Section 9.1 or Section 10 shall limit Company’s right, without MMRF’s consent, (i) to publish or otherwise publicly disclose the Research Results or any Program Inventions and (ii) to disclose this Agreement and the nature of the relationship between the Parties to existing and potential investors and acquirors and to existing and potential licensees and subcontractors, provided that such individuals or entities agree to maintain the confidentiality of any Confidential Information of MMRF on terms no less stringent than the terms contained in this Agreement.

 

9.5                               Previous Confidential Disclosure Agreements.  In case of a discrepancy between the terms of this Agreement and prior agreements, the terms of this Agreement shall prevail.

 

10.                               PUBLICITY.

 

10.1                        Parties’ Prior Written Consent.  Except as set forth under Section 3.5, 9.4, 10.2 and 10.3, neither Party shall use the name of the other Party, its trademarks, service marks, logos, or the name of any principal investigator, or any employee or agent, for any press release, marketing, advertising, public relations or other purposes without the prior written consent of the other Party.  Notwithstanding the foregoing, each Party will have the right to issue from time to time press releases and make other public disclosures that disclose the relationship of the Parties under this Agreement upon the agreement of the other Party, which agreement will not be unreasonably withheld, delayed, or conditioned.  Any press releases that are to be issued by either Party describing this Agreement will be in a form and substance as may be mutually agreed upon by the Parties, such agreement not to be unreasonably withheld delayed or conditioned, or shall be consistent with the disclosure in a previously approved press release.

 

10.2                        MMRF Disclosure of Certain Information.  MMRF may disclose the name of Company, Company’s logo, the existence of this Agreement, the total amount of the Award, and a summary description of the nature of the Research Program that does not contain Confidential Information on MMRF’s website, in its research portfolio, and in relation to its fundraising activities or its reporting requirements.

 

10.3                        Company Acknowledgement of Award.  If Company successfully publishes any work under the Research Program (including on-line), or publicly exhibits or otherwise makes a presentation on utilizing information developed in whole or in part from the Research Program, then Company shall publicly and prominently acknowledge MMRF’s financial contribution by

 

18

 

stating “Supported by an Award from the Multiple Myeloma Research Foundation (MMRF)” or making a substantially similar statement.

 

11.                               MISCELLANEOUS.

 

11.1                        Notices.  All notices and statements to be given (which will be in writing) and all payments to be made hereunder will be given or made as set forth below.  All notices, payments and statements to be made hereunder will be mailed by certified or registered mail, return receipt requested, or sent by overnight courier, or by facsimile or other electronic means (in either case with a confirmation copy sent by mail or overnight courier).  Any notice given pursuant to this Agreement by mail will be deemed received three (3) days after mailing.  Any notice sent by overnight courier will be deemed received one day after mailing.  The date of transmission of any notice sent by electronic means will be deemed to be the date the notice or statement is transmitted and transmission is confirmed.

 

If to MMRF:  To the Chief Scientific Officer at the address first set forth above or such other address as MMRF notifies Company in writing, with copies to the in-house attorney at MMRF at such address.

 

If to Company:  To the Chief Executive Officer of Company at the address first set forth above or such other address as Company notifies MMRF in writing, with copies to Chief Financial Officer at such address.

 

11.2                        Construction.  The section headings of this Agreement are inserted only for ease of reference only, and will not be used to interpret, define, construe, or describe the scope or extent of any aspect of this Agreement.  Unless otherwise expressly stated, when used in this Agreement the word “including” means “including but not limited to.”  Each Party represents that it has had the opportunity to participate in the preparation of this Agreement and hence the Parties agree that the rule of construction that ambiguities be resolved against the drafting Party will not apply to this Agreement.

 

11.3                        Severability.  Whenever possible, each provision of the Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any term or provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of the Agreement and this Agreement will be interpreted and construed as if such provision had never been contained herein.

 

11.4                        Force Majeure.  Neither Party will be liable to the other for any failure or delay in the performance of any of its obligations under this Agreement arising out of any event or circumstance beyond its reasonable control, including war, rebellion, terrorism, civil commotion, strikes, lock-outs or industrial disputes; fire, explosion, earthquake, acts of God, flood, drought, or bad weather; or requisitioning or other act or order by any government, council, or constituted body.  If such failure or delay occurs, then the affected Party will give the other Party notice of the circumstances causing such failure or delay, and such Party will be excused from the performance of such of its obligations that it is thereby disabled from performing for so long as the event causing the disability under this Section 11.4 continues and for thirty (30) days thereafter;

 

19

 

provided, however, that such affected Party commences and continues to take reasonable and diligent actions to cure such failure or delay.  Notwithstanding the foregoing, if a Party is disabled from the performance of any material obligation under this Agreement for a period of ninety (90) days or more, then the other Party will have the right to terminate this Agreement upon written notice to the other Party, in which event the provisions of Section 8.2(a) will apply.

 

11.5                        Waiver.  No failure or delay by either Party in exercising any right, power, or privilege under this Agreement will operate as a waiver thereof, nor will any single or partial waiver thereof include any other or further exercise thereof or the exercise of any other right, power, or privilege.

 

11.6                        Relationship of the Parties.  It is expressly agreed that MMRF and Company shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture or agency of any kind.  Neither Party shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party.

 

11.7                        No Third Party Beneficiaries.  Unless expressly provided, no provisions of this Agreement are intended or will be construed to confer upon or give to any person other than Company and MMRF any rights, remedies, or other benefits under or by reason of this Agreement.

 

11.8                        Dispute Resolution.  The Parties shall attempt by direct negotiation, in good faith, to resolve promptly any dispute arising out of or relating to this Agreement.  If the matter cannot be resolved in the normal course of business either Party shall give the other Party written notice of any such dispute not resolved at which time the dispute shall be referred to the RRC who shall likewise attempt to resolve the dispute.  If the matter cannot be resolved by the RRC, then prior to any further action, the matter shall be referred to the respective Chief Executive Officers or other senior management of the Parties in an attempt to resolve the matter.

 

If the dispute has not been resolved by negotiation as detailed above, or if the Parties fail to meet within [**] business days after the date the notice of dispute has been deemed given, either party may submit the dispute to arbitration to JAMS or any corporate successor of JAMS or, if unavailable, by the American Arbitration Association or any corporate successor of the American Arbitration Association, under the rules of such organization generally applicable to commercial disputes.  A single, impartial arbitrator mutually acceptable to the Parties shall conduct the arbitration.  In the event the Parties cannot agree on air arbitrator within [**] business days after the end of the aforesaid [**] business days, the Parties shall have an arbitrator appointed by JAMS, or the American Arbitration Association, as applicable.

 

The location of the arbitration will be in New York, NY, USA, unless the Parties agree otherwise.  As a condition of appointment of the arbitrator, said arbitrator shall agree to use her/his best efforts to conclude the proceeding within [**] business days.  Said arbitrator shall further have the authority to limit the volume of evidence and documents to be submitted by the Parties.  The arbitrator(s) is/are authorized to award such injunctive and monetary relief as he, she or they believe(s) appropriate.  The arbitration shall otherwise be governed by the United States Arbitration Act, 9 U.S.C. §§ 1 et seq.  Any court having jurisdiction thereof may enter judgment upon the award rendered by the arbitrator.  This Section shall, however, not be construed to limit or

 

20

 

to preclude either Party from bringing any action in any court of competent jurisdiction for injunctive or other provisional relief as necessary or appropriate.

 

11.9        Assignment.  Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld); provided, however, that either Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent (a) in connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates to a Third Party, whether by merger, sate of stock, sale of assets or otherwise, or (b) to any affiliate.  Notwithstanding the foregoing, any such assignment to an affiliate shall not relieve the assigning Party of its responsibilities for performance of its obligations under this Agreement.  The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties.  Any assignment not in accordance with this Agreement shall be void.

 

11.10      Governing Law.  This Agreement shall be construed in accordance with the laws of the State of New York.

 

11.11      Entire Agreement.  This Agreement includes all exhibits attached hereto constitutes the entire Agreement by and between the Parties as to the subject matter hereof.  This Agreement supersedes and replaces in its entirety all prior agreements, understandings, letters of intent, and memoranda of understanding relating to the subject matter of this Agreement by and between the Parties hereto, in either written or oral form.  No amendment or modification of this Agreement will be valid unless set forth in writing referencing this Agreement and executed by authorized representatives of both Parties.

 

11.12      Counterparts and Electronic Signatures.  This Agreement may be executed in duplicate, each of which shall be deemed to be original and both of which shall constitute one and the same Agreement.

 

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The parties agree that this Agreement may be executed and delivered by facsimile, electronic mail, internet, or any other suitable electronic means, and the parties agree that signatures delivered by any of the aforementioned means shall be deemed to be original, valid, and binding upon the parties.

 

IN WITNESS WHEREOF, the Parties hereto have this day caused this Agreement to be executed by their duly authorized officers.

 

	
Karyopharm Therapeutics Inc.
    	
 
    	
Multiple Myeloma Research Foundation, Inc.
    
	
 
    	
 
    	
 
    
	
/s/   Sharon Shacham
    	
 
    	
/s/   James Grazick
    
	
 
    	
 
    	
 
    
	
Name:   Sharon Shacham
    	
 
    	
Name:   James Grazick
    
	
Title:   CSO
    	
 
    	
Title:   Finance Director
    
	
Date:   7/28/11
    	
 
    	
Date:   7/20/11
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Multiple Myeloma Research Foundation, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Walter M. Capone
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name: Walter M. Capone
    
	
 
    	
 
    	
Title: COO
    
	
 
    	
 
    	
Date:
    

 

22

 

EXHIBIT A

 

COMPANY PROPOSAL

 

[**]

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of seven pages were omitted. [**]

 

23

 

EXHIBIT B

 

MILESTONES AND DELIVERABLES

 

	

    

 

MMRF BIA 2010

 

Karyopharm

 

	
Milestone
    	
 
    	
MMRF
   Funding
    	
 
    	
Target
   Completion
   Date
    	
 
    	
Completion Date &
    Documentation
   Received
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**
    	
]
    	
[**
    	
]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Requested
    	
 
    	
1,000,000
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

24

 

EXHIBIT C

 

BUDGET

 

Timeline and Budget plan

 

[**]

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of four pages were omitted.

 

25

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