Document:

Exhibit 4.2

 

Execution Version

 

KALA PHARMACEUTICALS, INC.

 

THIRD AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

April 6, 2016

 

 

TABLE OF CONTENTS

 

	
1.
    	
Certain Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Demand Registration
    	
3
    
	
 
    	
 
    	
 
    
	
3.
    	
Form S-3
    	
4
    
	
 
    	
 
    	
 
    
	
4.
    	
Piggyback Registration
    	
4
    
	
 
    	
 
    	
 
    
	
5.
    	
Registration Procedures
    	
5
    
	
 
    	
 
    	
 
    
	
6.
    	
Expenses
    	
7
    
	
 
    	
 
    	
 
    
	
7.
    	
Indemnification
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
Compliance with Rule 144
    	
11
    
	
 
    	
 
    	
 
    
	
9.
    	
Rule 144A Information
    	
11
    
	
 
    	
 
    	
 
    
	
10.
    	
Amendments and Waivers
    	
11
    
	
 
    	
 
    	
 
    
	
11.
    	
Postponement
    	
12
    
	
 
    	
 
    	
 
    
	
12.
    	
Market Stand-Off
    	
12
    
	
 
    	
 
    	
 
    
	
13.
    	
Transferability of   Registration Rights
    	
12
    
	
 
    	
 
    	
 
    
	
14.
    	
Rights Which May Be   Granted to Subsequent Stockholders
    	
13
    
	
 
    	
 
    	
 
    
	
15.
    	
Termination of   Registration Rights
    	
13
    
	
 
    	
 
    	
 
    
	
16.
    	
Damages
    	
13
    
	
 
    	
 
    	
 
    
	
17.
    	
Miscellaneous
    	
13
    

 

 

THIRD AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

 

This Third Amended and Restated Registration Rights Agreement, dated as of April 6, 2016 (this “Agreement”), is entered into by and among Kala Pharmaceuticals, Inc., a Delaware corporation (the “Company”), the individuals and entities listed on Schedule A attached hereto (collectively, the “Investors” and each individually, an “Investor”) and the individual listed on Schedule B attached hereto (the “Key Holder,” and together with the Investors, the “Stockholders”).

 

RECITALS:

 

WHEREAS, the Company and certain of the Stockholders are parties to that certain Second Amended and Restated Registration Rights Agreement, dated as of April 16, 2014, as amended by Amendment No. 1 and Amendment No. 2 thereto (the “Existing Registration Rights Agreement”);

 

WHEREAS, the Company and certain of the Investors (the “Series C Purchasers”) have entered into a Series C Preferred Stock Purchase Agreement on or prior to the date hereof (as amended and/or restated from time to time, the “Series C Purchase Agreement”) in connection with the issuance and sale by the Company to such Series C Purchasers of shares of the Company’s Series C Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”);

 

WHEREAS, as a condition precedent to the sale and purchase of the Series C Preferred Stock pursuant to the Series C Purchase Agreement, the Series C Purchasers have required that the Existing Registration Rights Agreement be amended and restated to, among other things, make the Series C Purchasers parties thereto;

 

WHEREAS, pursuant to Section 10 of the Existing Registration Rights Agreement, the amendment and restatement of the Existing Registration Rights Agreements requires the written consent of the holders of at least fifty percent (50%) of the Registrable Securities (as defined in the Existing Registration Rights Agreement);

 

WHEREAS, pursuant to Section 14 of the Existing Registration Rights Agreement, the Company shall not, without the written consent of the holders of at least fifty percent (50%) of the Registrable Securities, allow purchasers of the Company’s securities to become a party to the Existing Registration Rights Agreement; and

 

WHEREAS, the signatories to this Agreement hold the requisite number of Registrable Securities to effect the amendment and restatement of the Existing Registration Rights Agreement and desire to amend and restate the Existing Registration Rights Agreement in its entirety in the manner set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:

 

1.                                      Certain Definitions.  As used in this Agreement, the following terms shall have the following respective meanings:

 

 

“Charter” shall mean the Company’s Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time.

 

“Commission” shall mean the United States Securities and Exchange Commission, or any other federal agency administering the Securities Act and the Exchange Act at the time.

 

“Common Stock” shall mean the Company’s common stock, par value $0.001 per share.

 

“Damages” shall mean any loss, claim, damage, expense or liability, joint or several, to which a party hereto may become subject under the Securities Act, the Exchange Act or any other statute or at common law.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“Indemnified Person” shall mean a Company Indemnified Person and/or a Stockholder Indemnified Person, as applicable.

 

“Joinder Agreement” shall mean a joinder agreement in substantially the form attached hereto as Exhibit I.

 

“Key Holder Registrable Securities” shall mean the shares of Common Stock held, or hereafter acquired, by the Key Holder from the Company, including without limitation any shares of Common Stock issued to the Key Holder upon the exercise of stock options.”

 

“Person” shall mean an individual, a corporation, a partnership, a joint venture, a trust, an unincorporated organization, a limited liability company or partnership, a government and any agency or political subdivision thereof.

 

“Preferred Stock” shall mean, collectively, the Seed Preferred Stock, the Series A Preferred Stock, the Series B Preferred Stock, the Series B-1 Preferred Stock and the Series C Preferred Stock.

 

“Registrable Securities” shall mean (i) the shares of Common Stock issued or issuable upon conversion of the Preferred Stock held, or hereafter acquired, by the Investors (the “Investor Registrable Securities”), (ii) Key Holder Registrable Securities and (iii) any other shares of Common Stock issued or issuable in respect of such Investor Registrable Securities or Key Holder Registrable Securities (because of stock splits, stock dividends, reclassifications, recapitalizations or similar events).

 

“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“Seed Preferred Stock” shall mean the Company’s Seed Preferred Stock, par value $0.001 per share.

 

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“Series A Preferred Stock” shall mean the Company’s Series A Preferred Stock, par value $0.001 per share.

 

“Series B Preferred Stock” shall mean the Company’s Series B Preferred Stock, par value $0.001 per share.

 

“Series B-1 Preferred Stock” shall mean the Company’s Series B-1 Preferred Stock, par value $0.001 per share.”

 

2.                                      Demand Registration

 

(a)                                 At any time after the earlier of (i) five (5) years from the date of this Agreement and (ii) one hundred eighty (180) days after the initial public offering of the Company’s Common Stock pursuant to an effective registration under the Securities Act, the holders (excluding the Key Holder) of at least fifty percent (50%) of the Registrable Securities then outstanding (excluding Key Holder Registrable Securities) may notify the Company that they intend to offer or cause to be offered for public sale at least fifty percent (50%) of the Registrable Securities then outstanding (excluding Key Holder Registrable Securities) or any lesser number of Registrable Securities (excluding Key Holder Registrable Securities) if the anticipated aggregate sale price, net of underwriting discounts and commissions, if any, would exceed $10,000,000.  Upon receipt of such request, the Company shall promptly deliver notice of such request to all Stockholders holding Registrable Securities who shall then have thirty (30) days to notify the Company in writing of their desire to be included in such registration.  If the request for registration contemplates an underwritten public offering, the Company shall state such in the written notice and in such event the right of any Person to participate in such registration shall be conditioned upon such Person’s participation in such underwritten public offering and the inclusion of such Person’s Registrable Securities in the underwritten public offering to the extent provided herein.  The Company will use its reasonable best efforts to expeditiously effect (but in any event no later than thirty (30) days after such request) the registration of all Registrable Securities whose holders request participation in such registration under the Securities Act, but only to the extent provided for in this Agreement; provided, however, that the Company shall not be required to effect registration pursuant to a request under this Section 2(a) more than two (2) times for the holders of the Registrable Securities as a group.  Notwithstanding anything to the contrary contained herein, no request may be made under this Section 2(a) within ninety (90) days after the effective date of a registration statement filed by the Company covering a firm commitment underwritten public offering in which the holders of Registrable Securities shall have been entitled to join pursuant to Section 4 and in which there shall have been effectively registered all Registrable Securities as to which registration shall have been requested.  A registration will not count as a requested registration under this Section 2(a) unless and until the registration statement relating to such registration has been declared effective by the Commission; provided, however, that a majority in interest of the participating holders of Registrable Securities may request, in writing, that the Company withdraw a registration statement which has been filed under this Section 2(a) but has not yet been declared effective, and a majority in interest of such holders may thereafter request the Company to reinstate such registration statement, if permitted under the Securities Act, or to file another registration statement, in accordance with the procedures set forth herein and without reduction in the number of demand registrations permitted under this Section 2(a).

 

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(b)                                 If a requested registration involves an underwritten public offering and the managing underwriter of such offering determines in good faith that the number of securities sought to be offered should be limited due to market conditions, then the number of securities to be included in such underwritten public offering shall be reduced to a number deemed satisfactory by such managing underwriter; provided, that the securities to be excluded shall be determined in the following order of priority: (i) first, persons not having any contractual or other right to include such securities in the registration statement, (ii) second, securities held by any other Persons (other than the holders of Registrable Securities) having a contractual, incidental “piggy back” right to include such securities in the registration statement, (iii) third, securities to be registered by the Company pursuant to such registration statement, (iv) fourth, Registrable Securities of holders who did not make the original request for registration and, if necessary, (v) fifth, Registrable Securities of holders who requested such registration pursuant to Section 2(a).  If there is a reduction of the number of Registrable Securities pursuant to clauses (iv) or (v), such reduction shall be made on a pro rata basis (based upon the aggregate number of Registrable Securities held by such holders).

 

(c)                                  With respect to a request for registration pursuant to Section 2(a) which is for an underwritten public offering, the managing underwriter shall be chosen by the holders of a majority of the Registrable Securities to be sold in such offering, subject only to the consent of the Company, which consent shall not be unreasonably withheld.  The Company may not cause any other registration of securities for sale for its own account (other than a registration effected solely to implement an employee benefit plan) to become effective within one hundred twenty (120) days following the effective date of any registration required pursuant to this Section 2.

 

3.                                      Form S-3.  An Investor or Investors holding Registrable Securities (excluding any Key Holder Registrable Securities) anticipated to have an aggregate sale price (net of underwriting discounts and commissions, if any) in excess of $1,000,000 shall have the right to request any number of registrations on Form S-3 (or any successor form) for the Registrable Securities held by such requesting holder or holders; provided, however, that the Company (i) is then eligible to use such Form S-3 (or successor form) and (ii) shall not be required to file more than two (2) such registration statements on Form S-3 (or any successor form) in any twelve (12) month period. Such requests shall be in writing and shall state the number of shares of Registrable Securities to be disposed of and the intended method of disposition of such shares by such holder or holders.  The Company shall give notice to all other holders of the Registrable Securities of the receipt of a request for registration pursuant to this Section 3 and such holders of Registrable Securities shall then have thirty (30) days to notify the Company in writing of their desire to participate in the registration.  The Company shall use its reasonable best efforts to effect promptly the registration of all shares on Form S-3 (or any successor form) to the extent requested by such holders.  The Company shall use its reasonable best efforts to keep such registration statement effective until the earlier of ninety (90) days or until such holders have completed the distribution described in such registration statement.

 

4.                                      Piggyback Registration.  If the Company at any time proposes to register any of its securities under the Securities Act for sale to the public (except with respect to registration statements on Forms S-4, S-8 or another form not available for registering the Registrable Securities for sale to the public), each such time it will give written notice at the applicable address of record to each holder of Registrable Securities of its intention to do so.  Upon the written request

 

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of any of such holders of the Registrable Securities, given within twenty (20) days after receipt by such Person of such notice, the Company will, subject to the limits contained in this Section 4, use its reasonable best efforts to cause all such Registrable Securities of said requesting holders to be registered under the Securities Act and qualified for sale under any state blue sky law, all to the extent required to permit such sale or other disposition of said Registrable Securities; provided, however, that if the Company is advised in writing in good faith by any managing underwriter of the Company’s securities being offered in a public offering pursuant to such registration statement that the amount to be sold by persons other than the Company (collectively, “Selling Stockholders”) is greater than the amount which can be offered without adversely affecting the offering, the Company may reduce the amount offered for the accounts of Selling Stockholders (including such holders of shares of Registrable Securities) to a number deemed satisfactory by such managing underwriter; provided, further, that (a) in no event shall the amount of Registrable Securities of Selling Stockholders be reduced below twenty-five percent (25%) of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities; and (b) any shares to be excluded shall be determined in the following order of priority: (i) securities held by any Persons not having any such contractual, incidental registration rights, (ii) securities held by any Persons having contractual, incidental registration rights pursuant to an agreement which is not this Agreement, and (iii) the Registrable Securities sought to be included by the holders thereof as determined on a pro rata basis (based upon the aggregate number of Registrable Securities held by such holders).

 

5.                                      Registration Procedures.  If and whenever the Company is required by the provisions of this Agreement to use its reasonable best efforts to promptly effect the registration of any of its securities under the Securities Act, the Company will:

 

(a)                                 use its reasonable best efforts to diligently prepare and file with the Commission a registration statement on the appropriate form under the Securities Act with respect to such securities, which form shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith, and use its reasonable best efforts to cause such registration statement to become and remain effective for, except as specified in Section 3 above, a period of up to one hundred eighty (180) days or, if earlier, until completion of the proposed offering;

 

(b)                                 use its reasonable best efforts to diligently prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective until the selling Stockholder(s) have completed the distribution described in such registration statement, unless otherwise set forth herein, and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all securities covered by such registration statement whenever the seller or sellers of such securities shall desire to sell or otherwise dispose of the same, but only to the extent provided in this Agreement;

 

(c)                                  furnish to each selling Stockholder and the underwriters, if any, such number of copies of such registration statement, any amendments thereto, any documents incorporated by reference therein, the prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as such selling

 

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Stockholder may reasonably request in order to facilitate the public sale or other disposition of the securities owned by such selling Stockholder;

 

(d)                                 use its reasonable best efforts to register or qualify the securities covered by such registration statement under such other securities or state blue sky laws of such jurisdictions as each selling Stockholder shall reasonably request, and do any and all other acts and things which may be necessary under such securities or blue sky laws to enable such selling Stockholder to consummate the public sale or other disposition in such jurisdictions of the securities owned by such selling Stockholder, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation or to file a general consent to service of process in any such states or jurisdictions wherein it is not already so qualified;

 

(e)                                  within a reasonable time before each filing of the registration statement or prospectus or amendments or supplements thereto with the Commission, furnish to counsel selected by the selling Stockholders copies of such documents proposed to be filed, having considered in good faith any comments to such documents from such counsel;

 

(f)                                   immediately notify each selling Stockholder, such selling Stockholder’s counsel and any underwriter (and if requested by any such Person, confirm such notice in writing) of the happening of any event that makes any statement made in the registration statement or related prospectus untrue or which requires the making of any changes in such registration statement or prospectus so that they will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading; and, as promptly as practicable thereafter, prepare and file with the Commission and furnish a supplement or amendment to such prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities, such prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(g)                                  use its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of a registration statement, and if one is issued, use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement at the earliest possible moment;

 

(h)                                 if requested by the managing underwriter or underwriters (if any), any selling Stockholder, or such selling Stockholder’s counsel, promptly incorporate in a prospectus supplement or post-effective amendment such information as such Person reasonably and appropriately requests to be included therein and promptly make all required filings of such prospectus supplement or post-effective amendment;

 

(i)                                     make available to each selling Stockholder, any underwriter participating in any disposition pursuant to a registration statement, and any attorney, accountant or other agent or representative retained by any such selling Stockholder or underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and

 

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employees to supply all information reasonably requested by any such Inspector in connection with such registration statement as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(j)                                    in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering and use its reasonable best efforts to facilitate the public offering of the securities;

 

(k)                                 furnish to each prospective selling Stockholder a signed counterpart, addressed to the prospective selling Stockholder, of (A) an opinion of counsel for the Company, dated the effective date of the registration statement, and (B) a “comfort” letter signed by the independent public accountants who have certified the Company’s financial statements included in the registration statement, covering substantially the same matters with respect to the registration statement (and the prospectus included therein) and (in the case of the accountants’ letter) with respect to events subsequent to the date of the financial statements, as are customarily covered (at the time of such registration) in opinions of the Company’s counsel and in accountants’ letters delivered to the underwriters in underwritten public offerings of securities;

 

(l)                                     cause the securities covered by such registration statement to be listed on the securities exchange or quoted on the quotation system on which the Common Stock of the Company is then listed or quoted (or if the Common Stock is not yet listed or quoted, then on such exchange or quotation system as the Company shall determine);

 

(m)                             otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission and make generally available to its security holders, in each case as soon as practicable, but not later than thirty (30) days after the close of the period covered thereby, an earnings statement of the Company which will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any comparable successor provisions);

 

(n)                                 otherwise cooperate with the underwriter(s), the Commission and other regulatory agencies and take all actions and execute and deliver or cause to be executed and delivered all documents necessary to effect the registration of any securities under this Agreement; and

 

(o)                                 during the period when the prospectus is required to be delivered under the Securities Act, promptly file all documents required to be filed with the Commission pursuant to Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act.

 

6.                                      Expenses.  All expenses incurred by the Company or the selling Stockholders in effecting the registrations provided for in Sections 2, 3 and 4 of this Agreement, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, the reasonable fees and disbursements of one counsel (the “Selling Stockholder Counsel”) for the selling Stockholders (selected by at least fifty percent (50%) in interest of Registrable Securities being registered and held by the selling Stockholders participating in such registration), underwriting expenses (other than fees, commissions or discounts), expenses of any audits incident to or required by any such registration and expenses of complying with the

 

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securities or blue sky laws of any jurisdictions (all of such expenses referred to as “Registration Expenses”), shall be paid by the Company; provided, however, that the Company shall not be required to pay for any Registration Expenses of any registration proceeding begun pursuant to Section 2 if the registration request is subsequently withdrawn at the request of the selling Stockholders holding at least fifty percent (50%) in interest of the Registrable Securities requested to be registered pursuant to Section 2 (in which case, all such selling Stockholders shall bear such Registration Expenses pro rata based upon the number of Registrable Securities held by each such selling Stockholder that were to be included in the withdrawn registration), unless the selling Stockholders holding at least fifty percent (50%) in interest of the Registrable Securities requested to be registered pursuant to Section 2 forfeit their right to one registration pursuant to Section 2; provided that if, at the time of such withdrawal, the selling Stockholders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the selling Stockholders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information, then the selling Stockholders shall not be required to pay any of such Registration Expenses and shall not forfeit their right to one registration pursuant to Section 2.  All Selling Expenses (as defined below) relating to Registrable Securities registered pursuant to this Agreement shall be borne and paid by the selling Stockholders pro rata on the basis of the number of Registrable Securities registered on their behalf. “Selling Expenses” means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any selling Stockholder, except for the fees and disbursements of the Selling Stockholder Counsel borne and paid by the Company as provided in this Section 6.

 

7.                                      Indemnification.

 

(a)                                 The Company shall indemnify and hold harmless each selling Stockholder (including its partners (including partners of partners and shareholders of such partners)), the directors, officers, employees and agents of each such selling Stockholder, legal counsel, accountants and investment advisers for each such selling Stockholder, any underwriter (as defined in the Securities Act) of an offering of Registrable Securities of such Stockholder, and each Person, if any, who controls (within the meaning of the Securities Act) such selling Stockholder or underwriter (each, a “Company Indemnified Person”) against any Damages, insofar as such Damages (or action in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement of the Company under which securities held by such party were registered under the Securities Act, including any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, (ii) any omission or alleged omission by the Company to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation by the Company of the Securities Act, the Exchange Act, any state securities or “blue sky” laws or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities or “blue sky” laws.  Except as otherwise provided in Section 7(d), the Company shall reimburse each such Company Indemnified Person in connection with investigating or defending any claim or proceeding from which Damages may result.  Notwithstanding the foregoing, the Company shall not be liable to any Company Indemnified Person in any such case to the extent that any such Damages arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, preliminary or final prospectus, or amendment or supplement

 

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thereto, in reliance upon and in conformity with information furnished in writing to the Company by such Company Indemnified Person specifically for use therein.  The Company shall not be required to indemnify any Company Indemnified Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any liability which arises out of the failure of any Company Indemnified Person to deliver a prospectus as required by the Securities Act regardless of any investigation made by or on behalf of such Company Indemnified Person; and the provisions of this sentence shall survive any transfer of such securities by such selling Stockholder.

 

(b)                                 Each selling Stockholder shall indemnify and hold harmless each other selling Stockholder of any securities, the Company, its directors and officers, any underwriter (as defined in the Securities Act), legal counsel and accountants for the Company, and each other Person, if any, who controls (within the meaning of the Securities Act) the Company or such underwriter (each, a “Stockholder Indemnified Person”), against any Damages, insofar as such Damages (or action in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement of the Company under which securities held by such party were registered under the Securities Act, including any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto or (ii) any omission or alleged omission by such selling Stockholder to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in the case of clauses (i) and (ii) of this sentence to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in such registration statement, preliminary or final prospectus, amendment or supplement thereto in reliance upon and in conformity with information furnished in writing to the Company by such selling Stockholder specifically for use therein.  Such selling Stockholder shall reimburse any Stockholder Indemnified Person for any legal fees incurred in investigating or defending any claim or proceeding from which Damages may result.  Notwithstanding the foregoing, except in the case of fraud or willful misconduct by a selling Stockholder, in no event shall the liability of any selling Stockholder for indemnification under this Section 7 exceed the lesser of (i) that proportion of the total of such Damages equal to the proportion of the total Registrable Securities sold under such registration statement by such selling Stockholder compared to the total Registrable Securities sold under such registration statement by the Selling Stockholders, or (ii) the amount equal to the net proceeds from the offering received by such selling Stockholder.  No selling Stockholder shall be required to indemnify any Stockholder Indemnified Person against any Damages arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any Damages which arise out of the failure of any Stockholder Indemnified Person to deliver a prospectus as required by the Securities Act.

 

(c)                                  Indemnification similar to that specified in Sections 7(a) and (b) shall be given by the Company and each selling Stockholder (with such modifications as may be appropriate) with respect to any required registration or other qualification of their securities under any federal or state law or regulation of governmental authority other than the Securities Act.

 

(d)                                 In the event the Company, any selling Stockholder or other Person receives a complaint, claim or other notice of any liability or action, giving rise to a claim for

 

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indemnification under Section 7(a), (b) or (c) above, the Person claiming indemnification under such paragraphs shall promptly notify the Person against whom indemnification is sought of such complaint, notice, claim or action, and such indemnifying Person shall have the right to investigate and defend any such complaint, notice, claim or action.

 

(e)                                  If the indemnification provided for in this Section 7 for any reason is held by a court of competent jurisdiction to be unavailable to an Indemnified Person in respect of any Damages, then each indemnifying party under this Section 7, in lieu of indemnifying such Indemnified Person under this Section 7, shall contribute to the amount paid or payable by such Indemnified Person as a result of such Damages (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the selling Stockholder(s) and the underwriters from the offering of Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, the selling Stockholder(s) and the underwriters in connection with the statements or omissions which resulted in such Damages, as well as any other relevant equitable considerations.  The relative benefits received by the Company, the selling Stockholder(s) and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company, the selling Stockholder(s), and the underwriting discount received by the underwriters, in each case, as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities.  The relative fault of the Company, the selling Stockholder(s) and the underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, the selling Stockholder(s), or the underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

The Company and the selling Stockholders agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata or per capita allocation or by any other method of allocation which does not take account the equitable considerations referred to in the immediately preceding paragraph.  Except in the case of fraud or willful misconduct by a selling Stockholder, in no event shall a selling Stockholder be required to contribute under this Section 7(e), when combined with the amounts paid or payable by such Stockholder pursuant to Section 7(b), in excess of the lesser of (i) that proportion of the total of such Damages equal to the proportion of the total Registrable Securities sold under such registration statement by such selling Stockholder compared to the total Registrable Securities sold under such registration statement by the Selling Stockholders, or (ii) the amount equal to the net proceeds from the offering received by such selling Stockholder.  No Person found guilty of fraudulent representation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not found guilty of such fraudulent misrepresentation.

 

(f)                                   The amount paid by an indemnifying party or payable to an Indemnified Person as a result of any Damages referred to in this Section 7 shall be deemed to include, subject to limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending any such action or claim, payable as the same are incurred.  The indemnification and contribution provided for in this Section 7 will remain in

 

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full force and effect regardless of any investigation made by or on behalf of the indemnified parties or any other officer, director, employee, agent or controlling person of the indemnified parties.

 

(g)                                  No indemnifying party, in the defense of any complaint, notice, claim or action, shall enter into a consent or entry of any judgment or enter into a settlement without the consent of the Indemnified Person, which consent shall not be unreasonably withheld or delayed.  Notwithstanding anything to the contrary set forth herein, (i) the indemnity agreement contained in Section 7(a) shall not apply to amounts paid in settlement of any complaint, notice, claim or action if such settlement is effected without the consent of the Company, which consent will not be unreasonably withheld or delayed, and (ii) the indemnity agreement contained in Section 7(b) shall not apply to amounts paid in settlement of any complaint, notice, claim or action if such settlement is effected without the consent of the selling Stockholders, which consent will not be unreasonably withheld or delayed.

 

8.                                      Compliance with Rule 144.  In the event that the Company (i) registers a class of securities under Section 12 of the Exchange Act or (ii) shall commence to file reports under Section 13 or 15(d) of the Exchange Act, the Company will use its reasonable best efforts thereafter to file with the Commission such information as is required under the Exchange Act for so long as there are holders of Registrable Securities; and in such event, the Company shall use its reasonable best efforts to take all action as may be required as a condition to the availability of Rule 144 under the Securities Act (or any comparable successor rules).  After the occurrence of the first underwritten public offering of Common Stock pursuant to an offering registered under the Securities Act on Form S-l (or any comparable successor forms), subject to the limitations on transfers imposed by this Agreement, the Company shall use its reasonable best efforts to facilitate and expedite transfers of Registrable Securities pursuant to Rule 144 under the Securities Act, which efforts shall include timely notice to its transfer agent to expedite such transfers of Registrable Securities.

 

9.                                      Rule 144A Information.  The Company shall, upon written request of any Investor, provide to such Investor and to any prospective institutional transferee of the Common Stock designated by such Investor, such financial and other information as is available to the Company or can be obtained by the Company without material expense and as such Investor may reasonably determine is required to permit such transfer to comply with the requirements of Rule 144A promulgated under the Securities Act.

 

10.                               Amendments and Waivers.  Subject to the last sentence of Section 12, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of at least sixty-seven percent (67%) of the Registrable Securities issued or issuable upon conversion of Preferred Stock then outstanding, provided that any amendment that would materially and adversely affect any Stockholder in a disproportionate manner than any other Stockholder shall not be effective against such Stockholder without such Stockholder’s written consent with respect thereto.  For the purposes of this Agreement, no course of dealing between or among any of the parties hereto and no delay on the part of any party hereto in exercising any rights hereunder shall operate as a waiver of the rights hereof.

 

11

 

11.                               Postponement.  The Company may postpone the filing of any registration statement required hereunder for a reasonable period of time, not to exceed ninety (90) days in the aggregate during any twelve-month period, if the Company has been advised by legal counsel that such filing would require a special audit or the disclosure of a material impending transaction or other matter and the Company’s Board of Directors determines reasonably and in good faith that such disclosure would have a material adverse effect on the Company (a “Black-Out Period”). Upon notice of the existence of a Black-Out Period from the Company to any Stockholder or Stockholders with respect to any registration statement already effective, such Stockholder or Stockholders shall refrain from selling their Registrable Securities under such registration statement until such Black-Out Period has ended; provided, however, that the Company shall not have the right to impose a Black-Out Period with respect to any registration statement that is already effective more than once during any period of twelve (12) consecutive months and in no event shall such Black-Out Period exceed sixty (60) days.

 

12.                               Market Stand-Off.  Each Stockholder agrees, that if requested by the Company and an underwriter in connection with the initial public offering of the Company of Common Stock under the Securities Act on a registration statement on Form S-1(the “IPO”), not to directly or indirectly offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of or otherwise dispose of or transfer any securities of the Company held by it immediately prior to the effectiveness of the registration statement relating to the IPO for such period, not to exceed one hundred eighty (180) days (plus any additional period of time as may be requested by the Company or such underwriter for the purpose of complying with FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto) following the effective date of the registration statement for the IPO, as such underwriter shall specify reasonably and in good faith; provided, however, that all officers and directors of the Company and all 1% or greater stockholders of the Company enter into similar agreements; provided, further, however, that in the event the Company or such underwriter, as applicable, releases any securities of the Company from the restrictions set forth in this Section 12 or similar restrictions (in any such case, the “Released Securities”), the foregoing provisions shall be waived or terminated, as applicable, to the same extent and with respect to the same percentage of securities of each Stockholder as the percentage of Released Securities represent with respect to the securities held by the holder of such Released Securities. For purposes of clarity, the restrictions set forth herein shall not apply to shares acquired in the IPO or in the open market following the IPO.  Notwithstanding anything to the contrary contained herein, any amendment to this Section 12 that would adversely affect the holders of the Series B Preferred Stock or the Series B-1 Preferred Stock or the Series C Preferred Stock, as the case may be, shall require the written consent of (i) the holders of at least a majority of the Series B Preferred Stock and Series B-1 Preferred Stock then outstanding, in the case of an amendment that adversely affects the holders of the Series B Preferred Stock or the Series B-1 Preferred Stock and (ii) the holders of at least a majority of the Series C Preferred Stock then outstanding in the case of an amendment that adversely affects the holders of the Series C Preferred Stock.

 

13.                               Transferability of Registration Rights.  The registration rights set forth in this Agreement are transferable to each transferee of Registrable Securities. Each subsequent holder of Registrable Securities must consent in writing to be bound by the terms and conditions of this Agreement in order to acquire the rights granted pursuant to this Agreement.

 

12

 

14.                               Rights Which May Be Granted to Subsequent Stockholders.  Other than permitted transferees of Registrable Securities under Section 13, the Company shall not, without the prior written consent of holders of at least fifty percent (50%) in interest of the Registrable Securities then outstanding, (a) allow purchasers of the Company’s securities to become a party to this Agreement (except as permitted by Section 17(e) of this Agreement) or (b) grant any other registration rights, other than any incidental or so called piggyback registration rights to any third parties that are not inconsistent with the terms of this Agreement.

 

15.                               Termination of Registration Rights.  The right of any Stockholder to request registration or inclusion of Registrable Securities in any registration pursuant to Sections 2, 3, or 4 of this Agreement shall terminate on the seventh (7th) anniversary of the Company’s initial public offering.

 

16.                               Damages.  The Company recognizes and agrees that each holder of Registrable Securities may not have an adequate remedy if the Company fails to comply with the terms and provisions of this Agreement and that damages may not be readily ascertainable, and the Company expressly agrees that, in the event of such failure, the holder of Registrable Securities or any other Person entitled to the benefits of this Agreement shall be entitled to seek specific performance of any and all provisions hereof or to seek injunctive relief against the Company from continuing to commit any such breach of this Agreement.

 

17.                               Miscellaneous.

 

(a)                                 Notices.  All notices, requests, demands and other communications provided for herein shall be in writing and shall be deemed to have been duly given, delivered and received upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) one (1) business day after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery.  All notices, requests, demands and other communications provided for herein shall be given to the applicable party at the addresses indicated below:

 

To the Company:

 

Kala Pharmaceuticals, Inc.
 100 Beaver Street
 Suite 201
 Waltham, MA 02453
 Attention: Chief Executive Officer
 Facsimile: 781-642-0399
 Email: mark.iwicki@kalarx.com

 

With a copy to:

 

Wilmer Cutler Pickering Hale and Dorr LLP
 60 State Street
 Boston, MA 02109

 

13

 

Attention: Lia Der Marderosian, Esq.
 Facsimile: 617-526-5000
 Email: Lia.DerMarderosian@wilmerhale.com

 

If to the Investors, only at their respective addresses as set forth on the signature pages or Schedule A attached hereto, with a copy to Proskauer Rose LLP, One International Place, Boston, Massachusetts 02110-2600, Attn: Ori Solomon, Esq., osolomon@proskauer.com, Facsimile: 617-526-9899, a copy to Greenberg Traurig, LLP, One International Place, Boston, Massachusetts 02110, Attn: Bradley A. Jacobson, Esq., jacobsonb@gtlaw.com, Facsimile: 617-279-8402, a copy to Morrison, Foerster LLP, 755 Page Mill Road, Palo Alto, CA 94304, Attn: Paul “Chip” Lion III, PLion@mofo.com.

 

If to the Key Holder, at his address as set forth on Schedule B attached hereto.

 

If to any other holder of Registrable Securities:

 

At such Person’s address for notice as set forth in the books and records of the Company or, as to each of the foregoing, at such other address as shall be designated by such Person in a written notice to other parties complying as to delivery with the terms of this Section 17(a).

 

(b)                                 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the state of Delaware, without giving effect to conflict of laws principles thereof.

 

(c)                                  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Counterparts may be delivered via facsimile, electronic mail or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(d)                                 Severability.  If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein.

 

(e)                                  Additional Investors.  Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s Preferred Stock after the date hereof, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering to the Company a Joinder Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder.  No action or consent by the Stockholders shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

(f)                                   Entire Agreement.  This Agreement, including any schedules and exhibits hereto, constitutes the entire agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.  For the avoidance of doubt, upon the effectiveness of this

 

14

 

Agreement, the Existing Registration Rights Agreement shall be deemed amended and restated and superseded and replaced in its entirety by this Agreement, and shall be of no further force or effect.

 

[Signature pages follow.]

 

15

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
KALA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Iwicki
    
	
 
    	
Name:
    	
Mark   Iwicki
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
LUX   VENTURES II, L.P.
    
	
 
    	
By:
    	
Lux   Venture Partners II, L.P., its General Partner
    
	
 
    	
By:
    	
Lux   Venture Associates II, LLC, its General Partner
    
	
 
    	
By:
    	
Lux   Capital Management, LLC, its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Hébert
    
	
 
    	
Name:
    	
Peter   Hébert
    
	
 
    	
Title:
    	
Managing   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LUX   VENTURES II SIDECAR, L.P.
    
	
 
    	
By:
    	
Lux   Venture Partners II, L.P., its General Partner
    
	
 
    	
By:
    	
Lux   Venture Associates II, LLC, its General Partner
    
	
 
    	
By:
    	
Lux   Capital Management, LLC, its Sole Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Hébert
    
	
 
    	
Name:
    	
Peter   Hébert
    
	
 
    	
Title:
    	
Managing   Partner
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
HOLLY   SMITH-NORMAN 2007 TRUST, DATED NOVEMBER 24, 2007, AS AMENDED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Burr R. Smith
    
	
 
    	
Name:
    	
Burr   R. Smith
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
2012   TRUST AGREEMENT OF VICTORIA SMITH TRAUSCHT, DATED SEPTEMBER 18, 2012
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Victoria Smith Trauscht
    
	
 
    	
Name:
    	
Victoria   Smith Trauscht
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BRISCO-DAVIS   GROUP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Burr R. Smith
    
	
 
    	
Name:
    	
Burr   R. Smith
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DAVIS   CLEARING HOUSE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Burr R. Smith
    
	
 
    	
Name:
    	
Burr   R. Smith
    
	
 
    	
Title:
    	
Manager
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
2011   TRUST AGREEMENT OF KAREN CHASE SMITH, DATED FEBRUARY 22, 2012
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Karen Chase Smith
    
	
 
    	
Name:
    	
Karen   Chase Smith
    
	
 
    	
Title:
    	
Trustee
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
THIRD   ROCK VENTURES, L.P.
    
	
 
    	
By:
    	
Third   Rock Ventures GP, L.P., its General Partner
    
	
 
    	
By:
    	
TRV   GP, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Gillis
    
	
 
    	
Name:
    	
Kevin   Gillis
    
	
 
    	
Title:
    	
CFO
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
POLARIS   VENTURE PARTNERS V, L.P.
    
	
 
    	
By:
    	
Polaris   Venture Management Co. V, L.L.C., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William E. Bilodeau
    
	
 
    	
Name:
    	
William   E. Bilodeau
    
	
 
    	
Title:
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
POLARIS   VENTURE PARTNERS ENTREPRENEURS’ FUND V, L.P.
    
	
 
    	
By:
    	
Polaris   Venture Management Co. V, L.L.C., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William E. Bilodeau
    
	
 
    	
Name:
    	
William   E. Bilodeau
    
	
 
    	
Title:
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
POLARIS   VENTURE PARTNERS FOUNDERS’ FUND V, L.P.
    
	
 
    	
By:
    	
Polaris   Venture Management Co. V, L.L.C., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William E. Bilodeau
    
	
 
    	
Name:
    	
William   E. Bilodeau
    
	
 
    	
Title:
    	
Attorney-in-fact
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
POLARIS   VENTURE PARTNERS SPECIAL FOUNDERS’ FUND V, L.P.
    
	
 
    	
By:
    	
Polaris   Venture Management Co. V, L.L.C., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William E. Bilodeau
    
	
 
    	
Name:
    	
William   E. Bilodeau
    
	
 
    	
Title:
    	
Attorney-in-fact
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
LIGHTHOUSE   CAPITAL PARTNERS VI, L.P.
    
	
 
    	
By:
    	
Lighthouse   Management Partners VI, L.L.C., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christy Barnes
    
	
 
    	
Name:
    	
Christy   Barnes
    
	
 
    	
Title:
    	
Managing   Director
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
CVF,   LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard H. Robb
    
	
 
    	
Name:
    	
Richard   H. Robb
    
	
 
    	
Title:
    	
Manager
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
BENON   GROUP LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pierre Valla
    
	
 
    	
Name:
    	
Pierre   Valla
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
RA   CAPITAL HEALTHCARE FUND, L.P.
    
	
 
    	
 
    
	
 
    	
BY:   RA CAPITAL MANAGEMENT, LLC
    
	
 
    	
ITS:   GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rajeev Shah
    
	
 
    	
Name:
    	
Rajeev   Shah
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BLACKWELL   PARTNERS LLC—SERIES A
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Justin B. Nixon
    
	
 
    	
Name:
    	
Justin   B. Nixon
    
	
 
    	
Title:
    	
DUMAC,   Inc.
    
	
 
    	
 
    	
Authorized   Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jannine M. Lall
    
	
 
    	
Name:
    	
Jannine   M. Lail
    
	
 
    	
Title:
    	
Controller
    
	
 
    	
 
    	
DUMAC,   Inc.
    
	
 
    	
 
    	
Authorized   Agent
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
YSIOS   BIOFUND I FCR
    
	
 
    	
By:
    	
Ysios   Capital Partners SGEIC, SA, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Karen Wagner
    
	
 
    	
Name:
    	
Karen   Wagner
    
	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
HADLEY   HARBOR MASTER INVESTORS (CAYMAN) L.P.
    
	
 
    	
 
    
	
 
    	
By:   Wellington Management Company LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Emily Babalas
    
	
 
    	
Name:
    	
Emily   Babalas
    
	
 
    	
Title:
    	
Managing   Director and Counsel
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
LONGITUDE   VENTURE PARTNERS II, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   Longitude Capital Partners II, LLC
    
	
 
    	
 
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Juliet Tammenoms Bakker
    
	
 
    	
Name:
    	
Juliet   Tammenoms Bakker
    
	
 
    	
Title:
    	
Managing   Director
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
CDK   ASSOCIATES, L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Karen Cross
    
	
 
    	
Name:
    	
Karen   Cross
    
	
 
    	
Title:
    	
Treasurer
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
SCOTT   MORENSTEIN
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott Morenstein
    
	
 
    	
Name:
    	
Scott   Morenstein
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
ORBIMED   PRIVATE INVESTMENTS VI, LP
    
	
 
    	
 
    
	
 
    	
By:   OrbiMed Capital GP VI LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:   OrbiMed Advisors LLC
    
	
 
    	
 
    	
Its:   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jonathan Silverstein
    
	
 
    	
Name:
    	
Jonathan   Silverstein
    
	
 
    	
Title:
    	
Member
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
VIVO   CAPITAL FUND VIII, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Vivo Capital VIII, LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chen Yu
    
	
 
    	
Name:
    	
Chen   Yu
    
	
 
    	
Title:
    	
Managing   Member
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
VIVO   CAPITAL SURPLUS FUND VIII, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Vivo Capital VIII, LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chen Yu
    
	
 
    	
Name:
    	
Chen   Yu
    
	
 
    	
Title:
    	
Managing   Member
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
INVESTORS   (cont.):
    
	
 
    	
 
    
	
 
    	
ALEXANDRIA   EQUITIES, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Alexandria   Real Estate Equities, Inc., a Maryland corporation, its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jennifer Banks
    
	
 
    	
Name:
    	
Jennifer   Banks
    
	
 
    	
Title:
    	
EVP,   General Counsel
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
KEY HOLDER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Mark Iwicki
    
	
 
    	
Mark   Iwicki
    

 

[Signature Page to Third Amended and Restated Registration Rights Agreement]

 

 

Schedule A

 

Investors

 

Lux Ventures II, L.P.

Lux Ventures II Sidecar, L.P.

c/o Lux Capital Management, LLC

295 Madison Avenue, 24th floor

New York, NY 10017

Attn: Robert Paull

 

Brisco-Davis Group, LLC

Davis Clearing House, LLC

2012 Trust Agreement of Victoria Smith Trauscht, dated September 18, 2012

Holly Smith-Norman 2007 Trust, dated November 24, 2007, as amended

2011 Trust Agreement of Karen Chase Smith, dated February 22, 2012

453 N. Lindbergh Blvd., 2nd Floor

St. Louis, MO 63141

Attn: Kate Smith

 

CVF, LLC

222 N. La Salle St.

Suite 2000

Chicago, IL 60601

Attn: Richard H. Robb

 

Polaris Venture Partners V, L.P.

Polaris Venture Partners Entrepreneurs’ Fund V, L.P.

Polaris Venture Partners Founders’ Fund V, L.P.

Polaris Venture Partners Special Founders’ Fund V, L.P.

Polaris Venture Partners

One Marina Park Drive, 10th Floor

Boston, MA 02210

Attn: Kevin Bitterman

 

A-1

 

Schedule A

 

Investors

 

Third Rock Ventures, L.P.

Third Rock Ventures

29 Newbury Street #301

Boston, MA 02116

Attn:  Robert I. Tepper, M.D.

 

William Wachtel

c/o Wachtel Missry LLP

One Dag Hammarskjold Plaza

885 Second Avenue

New York, NY 10017

Attn: William Wachtel

 

Larry Fritz

P.O. Box 676150

Rancho Santa Fe, CA 92067

 

Adam Kalish

Lux Capital Management

295 Madison Avenue, 24th Floor

New York, NY 10017

Attn: Adam Kalish

 

Lighthouse Capital Partners VI, L.P.

3555 Alameda de las Pulgas, Suite 200

Menlo Park, California 94025

Attn: Contracts Administration

 

A-2

 

Schedule A

 

Investors

 

Benon Group Ltd.

Address For Notice:

Benon Group Ltd.

c/o Nathaniel de Rothschild Holdings, Ltd.

152 West 57th Street

37th Floor

New York, NY 10019

 

With a copy to:

 

Ellen S. Brody

Roberts & Holland LLP

825 8th Avenue, 37th Fl

New York, NY 10019

 

Ysios BioFund I FCR

c/o Ysios Capital Partners SGEIC, SA

Travessera de Gracia 11, 8th Floor

08021 Barcelona, Spain

Attn:  Karen Wagner, General Partner

 

Alexandria Equities, LLC

385 E. Colorado Blvd., Suite 299

Pasadena, California 91101

Attn:                    Chief Financial Officer

 

RA Capital Healthcare Fund, L.P.

Blackwell Partners LLC — Series A

20 Park Plaza

Suite 1200

Boston, Massachusetts 02116

Attn: Nicholas McGrath

 

A-3

 

Schedule A

 

Investors

 

Hadley Harbor Master Investors (Cayman) L.P.

c/o Wellington Management Company LLP

Attention:  Legal and Compliance Department

280 Congress Street

Boston, Massachusetts 02210

Facsimile Number: 617-289-5699

 

Longitude Venture Partners II, L.P.

800 El Camino Real, Suite 220

Menlo Park, CA 94025

Attention: Greg Grunberg

 

Vivo Capital Fund VIII, L.P.

575 High Street, Suite 201

Palo Alto, CA 94301

Attention: Chen Yu, Managing Partner

 

Vivo Capital Surplus Fund VIII, L.P.

575 High Street, Suite 201

Palo Alto, CA 94301

Attention: Chen Yu, Managing Partner

 

OrbiMed Private Investments VI, LP

c/o OrbiMed Advisors LLC

601 Lexington Avenue, 45th Floor

New York, NY 10022

Attn: Jonathan Silverstein

 

CDK Associates, L.L.C.

Attn: Heath Weisberg

CAM Capital

731 Alexander Road, Building 2

Princeton, NJ 08540

 

Scott Morenstein

635 West 42nd Street, Apt 45E

NY, NY 10036

 

A-4

 

Schedule B

Key Holder

 

Mark Iwicki

120 Dover Rd.

Wellesley, MA 02482

 

B-1

 

Exhibit I

 

Form of Joinder Agreement

 

The undersigned hereby agrees, effective as of the date hereof, to become a party to that certain Third Amended and Restated Registration Rights Agreement, dated as of April 6, 2016 (as amended and/or restated from time to time, the “Agreement”), by and among Kala Pharmaceuticals, Inc., a Delaware corporation, and the parties named therein, and for all purposes of the Agreement, the undersigned shall be included within the term “Investor” (as defined in the Agreement).

 

	
 
    	
 
    	
INVESTOR:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   For Notice:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
Tel:      [              ]
    
	
 
    	
 
    	
Email:  [              ]Exhibit 10.9

 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT (this “Lease”) is made this 30th day of September, 2013, between ARE-MA REGION NO. 9, LLC, a Delaware limited liability company (“Landlord”), and KALA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

 

	
Building:
    	
 
    	
100 Beaver Street, Waltham, Massachusetts
    
	
 
    	
 
    	
 
    
	
Premises:
    	
 
    	
That portion of the second floor of the Building,   containing approximately 11,747 rentable square feet, as determined by   Landlord, as shown on Exhibit A.
    
	
 
    	
 
    	
 
    
	
Project:
    	
 
    	
The real property on which the Building in which the   Premises are located, together with all improvements thereon and   appurtenances thereto as described on Exhibit B.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Base Rent:
    	
 
    	
Months 1 — 12:
    	
 
    	
$28.50 per rentable square foot of the Premises per   annum
    
	
 
    	
 
    	
Months 13 — 24:
    	
 
    	
$29.50 per rentable square foot of the Premises per   annum
    
	
 
    	
 
    	
Months 25 — 36:
    	
 
    	
$30.50 per rentable square foot of the Premises per   annum
    

 

Rentable Area of Premises:  11,747 sq. ft

 

Rentable Area of Project:  82,330 sq. ft.                                                                   Tenant’s Share of Operating Expenses:  14.27%

 

Security Deposit:                        $83,697.37

 

Target Commencement Date:  February 1, 2014

 

	
Base Term:
    	
 
    	
Beginning on the Commencement Date and ending 36   months from the first day of the first full month of the Term (as defined in Section 2)   hereof.
    
	
 
    	
 
    	
 
    
	
Permitted Use:
    	
 
    	
Research and development laboratory, related office   and other related uses consistent with the character of the Project and   otherwise in compliance with the provisions of Section 7 hereof.
    

 

	
Address for Rent   Payment:
    P.O. Box 975383 
   Dallas, TX 75397-5383
    	
Landlord’s Notice   Address:
    385 E. Colorado Boulevard,   Suite 299 
   Pasadena, CA 91101 
   Attention: Corporate Secretary
    
	
 
    	
 
    
	
Tenant’s Notice   Address
   Before the Commencement Date:
   135 Beaver Street, Suite 309 
   Waltham, MA 02452 
   Attention: General Counsel
    	
Tenant’s Notice   Address
   After the Commencement Date:
   100 Beaver Street, Suite 201 
   Waltham, MA 02452 
   Attention: General Counsel
    

 

The following Exhibits and Addenda are attached hereto and incorporated herein by this reference:

 

	
x    EXHIBIT A - PREMISES DESCRIPTION   
    	
x    EXHIBIT B - DESCRIPTION OF   PROJECT
    
	
x    EXHIBIT C - WORK LETTER
    	
x    EXHIBIT D - COMMENCEMENT DATE
    
	
x    EXHIBIT E - RULES AND   REGULATIONS
    	
x    EXHIBIT F - TENANT’S PERSONAL   PROPERTY
    
	
x    EXHIBIT G - HAZARDOUS MATERIALS   LIST
    	
 
    

 

 

 

 

	
Net Multi-Tenant Laboratory
    	
 
    	
100 Beaver/Kala
    

 

1.                                      Lease of Premises. Upon and subject to all of the terms and conditions hereof, Landlord hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord. The portions of the Project which are for the non-exclusive use of tenants of the Project are collectively referred to herein as the “Common Areas,” which shall include, but not be limited to, all common hallways, lobbies, bathrooms, corridors, walkways, elevators (including freight elevators), loading docks and dumpsters. Landlord reserves the right to modify Common Areas, provided that such modifications do not materially adversely affect Tenant’s use of the Premises for the Permitted Use. From and after the Commencement Date through the expiration of the Term, Tenant shall have access to the Building and the Premises 24 hours a day, 7 days a week, except in the case of emergencies, as the result of Legal Requirements, the performance by Landlord of any installation, maintenance or repairs, or any other temporary interruptions, and otherwise subject to the terms of this Lease.

 

2.                                      Delivery; Acceptance of Premises; Commencement Date. Landlord shall use reasonable efforts to deliver the Premises to Tenant on or before the Target Commencement Date, with Landlord’s Work Substantially Completed (“Delivery” or “Deliver”). If Landlord fails to timely Deliver the Premises, Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and this Lease shall not be void or voidable except as provided herein. If Landlord does not Deliver the Premises within 45 days of the Target Commencement Date for any reason other than Force Majeure delays and Tenant Delays, this Lease may be terminated by Tenant by written notice to Landlord, and if so terminated by Tenant: (a) the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant, and (b) neither Landlord nor Tenant shall have any further rights, duties or obligations under this Lease, except with respect to provisions which expressly survive termination of this Lease. As used herein, the terms “Landlord’s Work,” “Tenant Delays” and “Substantially Completed” shall have the meanings set forth for such terms in the Work Letter. If Tenant does not elect to void this Lease within 10 business days of the lapse of such 45 day period, such right to void this Lease shall be waived and this Lease shall remain in full force and effect. Notwithstanding anything to the contrary contained herein, if Tenant does not terminate this Lease pursuant to the immediately preceding sentence, Base Rent shall be abated 1 day for each day after such 45 day period (as extended by Force Majeure delays and Tenant Delays) that the Premises are not Delivered to Tenant.

 

The “Commencement Date” shall be the earlier of: (i) the date Landlord Delivers the Premises to Tenant; and (ii) the date Landlord could have Delivered the Premises but for Tenant Delays; provided, however, in no event shall the Commencement Date occur prior to January 15, 2014. Upon request of Landlord, Landlord and Tenant shall execute and deliver a written acknowledgment of the Commencement Date, and the expiration date of the Term when such are established in the form of the “Acknowledgement of Commencement Date” attached to this Lease as Exhibit D; provided, however, Tenant’s failure to execute and deliver such acknowledgment shall not affect Landlord’s rights hereunder. The “Term” of this Lease shall be the Base Term, as defined above on the first page of this Lease and the Extension Term which Tenant may elect pursuant to Section 40 hereof.

 

Except as set forth in the Work Letter and as otherwise expressly set forth in this Lease: (i) Tenant shall accept the Premises in their condition as of the Commencement Date, subject to all applicable Legal Requirements (as defined in Section 7 hereof); (ii) Landlord shall have no obligation for any defects in the Premises; and (iii) Tenant’s taking possession of the Premises shall be conclusive evidence that Tenant accepts the Premises. Any occupancy of the Premises by Tenant before the Commencement Date shall be subject to all of the terms and conditions of this Lease, including the obligation to pay Base Rent and Operating Expenses. Tenant shall be entitled to receive the benefit of all construction warranties and manufacturer’s equipment warranties issued for the benefit of Landlord relating to the Tenant Improvements constructed in the Premises pursuant to the Work Letter.

 

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For the period of 90 consecutive days after the Commencement Date, Landlord shall, at its sole cost and expense (which shall not constitute an Operating Expense), be responsible for any repairs that are required to be made to the structural portion of the Premises or Building Systems (as defined in Section 13) serving the Premises, unless Tenant or any Tenant Party was responsible for the cause of such repair, in which case Tenant shall pay the cost.

 

Tenant agrees and acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of all or any portion of the Premises or the Project, and/or the suitability of the Premises or the Project for the conduct of Tenant’s business, and Tenant waives any implied warranty that the Premises or the Project are suitable for the Permitted Use. This Lease constitutes the complete agreement of Landlord and Tenant with respect to the subject matter hereof and supersedes any and all prior representations, inducements, promises, agreements, understandings and negotiations which are not contained herein. Landlord in executing this Lease does so in reliance upon Tenant’s representations, warranties, acknowledgments and agreements contained herein.

 

3.                                      Rent.

 

(a)                                 Base Rent. The Security Deposit and the first month’s Base Rent shall be due and payable on or before January 10, 2014. Tenant shall pay to Landlord in advance, without demand, abatement, deduction or set-off, equal monthly installments of Base Rent on or before the first day of each calendar month during the Term hereof, in lawful money of the United States of America, at the office of Landlord for payment of Rent set forth above, or to such other person or at such other place as Landlord may from time to time designate in writing. Payments of Base Rent for any fractional calendar month shall be prorated. The obligation of Tenant to pay Base Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations. Tenant shall have no right at any time to abate, reduce, or set-off any Rent (as defined in Section 5) due hereunder except for any abatement as may be expressly provided in this Lease.

 

(b)                                 Additional Rent. In addition to Base Rent, Tenant agrees to pay to Landlord as additional rent (“Additional Rent”): (i) Tenant’s Share of “Operating Expenses” (as defined in Section 5), and (ii) any and all other amounts Tenant assumes or agrees to pay under the provisions of this Lease, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure to comply with the agreements, terms, covenants and conditions of this Lease to be performed by Tenant, after any applicable notice and cure period.

 

4.                                      Base Rent Adjustments.

 

(a)                                 Annual Adjustment. Base Rent shall be increased during the Base Term as provided for in the schedule set forth on page 1 of this Lease. Base Rent adjustments for any fractional calendar month shall be prorated.

 

(b)                                 TI Rent. Landlord shall, subject to the terms of the Work Letter, make the Glasswasher Allowance (as defined in the Work Letter) available to Tenant. Commencing on the Commencement Date and continuing thereafter on the first day of each month during the Term, Tenant shall pay the amount necessary to fully amortize the portion of the Glasswasher Allowance actually funded by Landlord, if any, over 6 years in equal monthly payments with interest at a rate of 8% per annum (“TI Rent”).

 

5.                                      Operating Expense Payments. Landlord shall deliver to Tenant a written estimate of Operating Expenses for each calendar year during the Term (the “Annual Estimate”), which may be revised by Landlord from time to time during such calendar year. During each month of the Term, on the

 

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same date that Base Rent is due, Tenant shall pay Landlord an amount equal to 1/12th of Tenant’s Share of the Annual Estimate. Payments for any fractional calendar month shall be prorated.

 

The term “Operating Expenses” means all costs and expenses of any kind or description whatsoever incurred or accrued each calendar year by Landlord with respect to the Project (including, without duplication, Taxes (as defined in Section 9), reasonable reserves consistent with good business practice for future repairs and replacements, capital repairs and improvements amortized over the lesser of 10 years and the useful life of such capital items (as reasonably determined by Landlord taking into account relevant factors), and the costs of Landlord’s third party property manager or, if there is no third party property manager, administration rent in the amount of 2.5% of Base Rent), excluding only:

 

(a)                                 the original construction costs of the Project and renovation prior to the date of the Lease and costs of correcting defects in such original construction or renovation;

 

(b)                                 capital expenditures for expansion of the Project;

 

(c)                                  interest, principal payments of Mortgage (as defined in Section 27) debts of Landlord, financing costs and amortization of funds borrowed by Landlord, whether secured or unsecured;

 

(d)                                 depreciation of the Project (except for capital improvements, the cost of which are includable in Operating Expenses);

 

(e)                                  advertising, legal and space planning expenses and leasing commissions and other costs and expenses incurred in procuring and leasing space to tenants for the Project, including any leasing office maintained in the Project, free rent and construction allowances for tenants;

 

(f)                                   legal and other expenses incurred in the negotiation or enforcement of leases;

 

(g)                                  completing, fixturing, improving, renovating, painting, redecorating or other work, which Landlord pays for or performs for other tenants within their premises, and costs of correcting defects in such work;

 

(h)                                 costs to be reimbursed by other tenants of the Project or Taxes to be paid directly by Tenant or other tenants of the Project, whether or not actually paid;

 

(i)                                     salaries, wages, benefits and other compensation paid to officers and employees of Landlord who are not assigned in whole or in part to the operation, management, maintenance or repair of the Project;

 

(j)                                    general organizational, administrative and overhead costs relating to maintaining Landlord’s existence, either as a corporation, partnership, or other entity, including general corporate, legal and accounting expenses;

 

(k)                                 costs (including attorneys’ fees and costs of settlement, judgments and payments in lieu thereof) incurred in connection with disputes with tenants, other occupants, or prospective tenants, and costs and expenses, including legal fees, incurred in connection with negotiations or disputes with employees, consultants, management agents, leasing agents, purchasers or mortgagees of the Building;

 

(l)                                     costs incurred by Landlord due to the violation by Landlord, its employees, agents or contractors or any tenant of the terms and conditions of any lease of space in the Project or any Legal Requirement (as defined in Section 7);

 

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(m)                             penalties, fines or interest incurred as a result of Landlord’s inability or failure to make payment of Taxes and/or to file any tax or informational returns when due, or from Landlord’s failure to make any payment of Taxes required to be made by Landlord hereunder before delinquency;

 

(n)                                 overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in or to the Project to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis;

 

(o)                                 costs of Landlord’s charitable or political contributions, or of fine art maintained at the Project;

 

(p)                                 costs in connection with services (including electricity), items or other benefits of a type which are not standard for the Project and which are not available to Tenant without specific charges therefor, but which are provided to another tenant or occupant of the Project, whether or not such other tenant or occupant is specifically charged therefor by Landlord;

 

(q)                                 costs incurred in the sale or refinancing of the Project;

 

(r)                                    the cost of designing and constructing the Tenant Improvements in the Premises pursuant to the Work Letter;

 

(s)                                   net income taxes of Landlord or the owner of any interest in the Project, franchise, capital stock, gift, estate or inheritance taxes or any federal, state or local documentary taxes imposed against the Project or any portion thereof or interest therein; and

 

(t)                                    any expenses otherwise includable within Operating Expenses to the extent actually reimbursed by persons other than tenants of the Project under leases for space in the Project.

 

Within 90 days after the end of each calendar year (or such longer period as may be reasonably required), Landlord shall furnish to Tenant a statement (an “Annual Statement”) showing in reasonable detail: (a) the total and Tenant’s Share of actual Operating Expenses for the previous calendar year, and (b) the total of Tenant’s payments in respect of Operating Expenses for such year. If Tenant’s Share of actual Operating Expenses for such year exceeds Tenant’s payments of Operating Expenses for such year, the excess shall be due and payable by Tenant as Rent within 30 days after delivery of such Annual Statement to Tenant. If Tenant’s payments of Operating Expenses for such year exceed Tenant’s Share of actual Operating Expenses for such year Landlord shall pay the excess to Tenant within 30 days after delivery of such Annual Statement, except that after the expiration, or earlier termination of the Term or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord.

 

The Annual Statement shall be final and binding upon Tenant unless Tenant, within 30 days after Tenant’s receipt thereof, shall contest any item therein by giving written notice to Landlord, specifying each item contested and the reason therefor. If, during such 30 day period, Tenant reasonably and in good faith questions or contests the accuracy of Landlord’s statement of Tenant’s Share of Operating Expenses, Landlord will provide Tenant with access to Landlord’s books and records relating to the operation of the Project and such information as Landlord reasonably determines to be responsive to Tenant’s questions (the “Expense Information”). If after Tenant’s review of such Expense Information, Landlord and Tenant cannot agree upon the amount of Tenant’s Share of Operating Expenses, then Tenant shall have the right to have an independent regionally recognized accounting firm selected by Tenant, working pursuant to a fee arrangement other than a contingent fee (at Tenant’s sole cost and expense) and approved by Landlord (which approval shall not be unreasonably withheld or delayed), audit and/or

 

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review the Expense Information for the year in question (the “Independent Review”). The results of any such Independent Review shall be binding on Landlord and Tenant. If the Independent Review shows that the payments actually made by Tenant with respect to Operating Expenses for the calendar year in question exceeded Tenant’s Share of Operating Expenses for such calendar year, Landlord shall at Landlord’s option either (i) credit the excess amount to the next succeeding installments of estimated Operating Expenses or (ii) pay the excess to Tenant within 30 days after delivery of such statement, except that after the expiration or earlier termination of this Lease or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord. If the Independent Review shows that Tenant’s payments with respect to Operating Expenses for such calendar year were less than Tenant’s Share of Operating Expenses for the calendar year, Tenant shall pay the deficiency to Landlord within 30 days after delivery of such statement. If the Independent Review shows that Tenant has overpaid with respect to Operating Expenses by more than 5% then Landlord shall reimburse Tenant for all costs incurred by Tenant for the Independent Review. Operating Expenses for the calendar years in which Tenant’s obligation to share therein begins and ends shall be prorated. Notwithstanding anything set forth herein to the contrary, if the Project is not at least 95% occupied on average during any year of the Term, Tenant’s Share of Operating Expenses for such year shall be computed as though the Project had been 95% occupied on average during such year.

 

“Tenant’s Share” shall be the percentage set forth on the first page of this Lease as Tenant’s Share as reasonably adjusted by Landlord for changes in the physical size of the Premises or the Project occurring thereafter. Landlord may equitably increase Tenant’s Share for any item of expense or cost reimbursable by Tenant that relates to a repair, replacement, or service that benefits only the Premises or only a portion of the Project that includes the Premises or that varies with occupancy or use. Base Rent, Tenant’s Share of Operating Expenses and all other amounts payable by Tenant to Landlord hereunder are collectively referred to herein as “Rent.”

 

6.                                      Security Deposit. Tenant shall deposit with Landlord, on or before January 10, 2014, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall have the right to draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit. The Security Deposit shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Upon each occurrence of a Default (as defined in Section 20), Landlord may use all or any part of the Security Deposit to pay delinquent payments due under this Lease, future rent damages and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any use of all or any portion of the Security Deposit, Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that

 

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Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 90 days after the expiration or earlier termination of this Lease.

 

If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Section 6, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

 

7.                                      Use. The Premises shall be used solely for the Permitted Use set forth in the basic lease provisions on page 1 of this Lease, and in compliance with all laws, orders, judgments, ordinances, regulations, codes, directives, permits, licenses, covenants and restrictions now or hereafter applicable to the Premises, and to the use and occupancy thereof, including, without limitation, the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (together with the regulations promulgated pursuant thereto, “ADA”) (collectively, “Legal Requirements” and each, a “Legal Requirement”). Tenant shall, upon 5 days’ written notice from Landlord, discontinue any use of the Premises which is declared by any Governmental Authority (as defined in Section 9) having jurisdiction to be a violation of a Legal Requirement. Tenant will not use or permit the Premises to be used for any purpose or in any manner that would void Tenant’s or Landlord’s insurance, increase the insurance risk, or cause the disallowance of any sprinkler or other credits. Tenant shall not permit any part of the Premises to be used as a “place of public accommodation”, as defined in the ADA or any similar legal requirement. Tenant shall reimburse Landlord promptly upon demand for any additional premium charged for any such insurance policy by reason of Tenant’s failure to comply with the provisions of this Section or otherwise caused by Tenant’s use and/or occupancy of the Premises. Tenant will use the Premises in a careful, safe and proper manner and will not commit or permit waste, overload the floor or structure of the Premises, subject the Premises to use that would damage the Premises or obstruct or interfere with the rights of Landlord or other tenants or occupants of the Project, including conducting or giving notice of any auction, liquidation, or going out of business sale on the Premises, or using or allowing the Premises to be used for any unlawful purpose. Tenant shall cause any equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations from the Premises from extending into Common Areas, or other space in the Project. Tenant shall not place any machinery or equipment that would overload the floor in or upon the Premises or transport or move such items through the Common Areas of the Project or in the Project elevators without the prior written consent of Landlord. Landlord hereby consents to the transport through the Common Areas and the placement within the Premises (in the locations reflected on the Space Plan (as defined in the Work Letter)) of the Tenant equipment reflected in the Space Plan pursuant to its determination that the same, as located as reflected in the Space Plan, is within the structural capacity of the floor of the Premises. Except as may be provided under the Work Letter, Tenant shall not, without the

 

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prior written consent of Landlord, use the Premises in any manner which will require ventilation, air exchange, heating, gas, steam, electricity or water beyond the existing capacity of the Project as proportionately allocated to the Premises based upon Tenant’s Share as usually furnished for the Permitted Use.

 

Landlord shall be responsible for the compliance of the Premises and the Common Areas of the Project with Legal Requirements as of the Commencement Date. Following the Commencement Date, Landlord shall, as an Operating Expense (to the extent such Legal Requirement is generally applicable to similar buildings in the area in which the Project is located) and at Tenant’s expense (to the extent such Legal Requirement is triggered by reason of Tenant’s, as compared to other tenants of the Project, specific use of the Premises or Tenant’s Alterations) make any alterations or modifications to the Common Areas or the exterior of the Building that are required by Legal Requirements. Tenant, at its sole expense, shall make any alterations or modifications to the interior of the Premises that are required by Legal Requirements (including, without limitation, compliance of the Premises with the ADA) related to Tenant’s specific use or occupancy of the Premises or Tenant’s Alterations. Notwithstanding any other provision herein to the contrary, Tenant shall be responsible for any and all demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or judgments, and all reasonable expenses incurred in investigating or resisting the same (including, without limitation, reasonable attorneys’ fees, charges and disbursements and costs of suit) (collectively, “Claims”) arising out of or in connection with Tenant’s failure to comply with Legal Requirements applicable to Tenant’s specific use or occupancy of the Premises or Tenant’s Alterations, and Tenant shall indemnify, defend, hold and save Landlord harmless from and against any and all Claims arising out of or in connection with any failure of the Premises to comply with any Legal Requirement applicable to Tenant’s specific use or occupancy of the Premises or Tenant’s Alterations.

 

8.                                      Holding Over. If, with Landlord’s express written consent, Tenant retains possession of the Premises after the termination of the Term, (i) unless otherwise agreed in such written consent, such possession shall be subject to immediate termination by Landlord at any time, (ii) all of the other terms and provisions of this Lease (including, without limitation, the adjustment of Base Rent pursuant to Section 4 hereof) shall remain in full force and effect (excluding any expansion or renewal option or other similar right or option) during such holdover period, (iii) Tenant shall continue to pay Base Rent in the amount payable upon the date of the expiration or earlier termination of this Lease or such other amount as Landlord may indicate, in Landlord’s sole and absolute discretion, in such written consent, and (iv) all other payments shall continue under the terms of this Lease. If Tenant remains in possession of the Premises after the expiration or earlier termination of the Term without the express written consent of Landlord, (A) Tenant shall become a tenant at sufferance upon the terms of this Lease except that the monthly rental shall be equal to 150% of Rent in effect during the last 30 days of the Term, and (B) Tenant shall be responsible for all damages suffered by Landlord resulting from or occasioned by Tenant’s holding over, including consequential damages. No holding over by Tenant, whether with or without consent of Landlord, shall operate to extend this Lease except as otherwise expressly provided, and this Section 8 shall not be construed as consent for Tenant to retain possession of the Premises. Acceptance by Landlord of Rent after the expiration of the Term or earlier termination of this Lease shall not result in a renewal or reinstatement of this Lease.

 

9.                                      Taxes. Landlord shall pay, as part of Operating Expenses, all taxes, levies, fees, assessments and governmental charges of any kind with respect to the Project, existing as of the Commencement Date or thereafter enacted (collectively referred to as “Taxes”), imposed by any federal, state, regional, municipal, local or other governmental authority or agency, including, without limitation, quasi-public agencies (collectively, “Governmental Authority”) during the Term, including, without limitation, all Taxes: (i) imposed on or measured by or based, in whole or in part, on rent payable to (or

 

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gross receipts received by) Landlord under this Lease and/or from the rental by Landlord of the Project or any portion thereof, or (ii) based on the square footage, assessed value or other measure or evaluation of any kind of the Premises or the Project, or (iii) assessed or imposed by or on the operation or maintenance of any portion of the Premises or the Project, including parking, or (iv) assessed or imposed by, or at the direction of, or resulting from Legal Requirements, or interpretations thereof, promulgated by any Governmental Authority, or (v) imposed as a license or other fee, charge, tax, or assessment on Landlord’s business or occupation of leasing space in the Project. Landlord may contest by appropriate legal proceedings the amount, validity, or application of any Taxes or liens securing Taxes. Taxes shall not include any net income taxes imposed on Landlord except to the extent such net income taxes are in substitution for any Taxes payable hereunder. If any such Tax is levied or assessed directly against Tenant, then Tenant shall be responsible for and shall pay the same at such times and in such manner as the taxing authority shall require. Tenant shall pay, prior to delinquency, any and all Taxes levied or assessed against any personal property or trade fixtures placed by Tenant in the Premises, whether levied or assessed against Landlord or Tenant. If any Taxes on Tenant’s personal property or trade fixtures are levied against Landlord or Landlord’s property, or if the assessed valuation of the Project is increased by a value attributable to improvements in or alterations to the Premises, whether owned by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, higher than the base valuation on which Landlord from time-to-time allocates Taxes to all tenants in the Project, Landlord shall have the right, but not the obligation, to pay such Taxes. Landlord’s determination of any excess assessed valuation shall be binding and conclusive, absent manifest error. The amount of any such payment by Landlord shall constitute Additional Rent due from Tenant to Landlord immediately upon demand.

 

10.                               Parking. Subject to all matters of record, Force Majeure, a Taking (as defined in Section 19 below) and the exercise by Landlord of its rights hereunder, Tenant shall have the right, at no additional cost to Tenant, in common with other tenants of the Project pro rata in accordance with the rentable area of the Premises and the rentable areas of the Project occupied by such other tenants, to park in those areas designated for non-reserved parking, subject in each case to Landlord’s rules and regulations. As of the date of this Lease, Tenant’s pro rata share of parking spaces is equal to 3.3 parking spaces per 1,000 rentable square feet of the Premises. Landlord may allocate parking spaces among Tenant and other tenants in the Project pro rata as described above if Landlord determines that such parking facilities are becoming crowded. Landlord shall not be responsible for enforcing Tenant’s parking rights against any third parties, including other tenants of the Project.

 

11.                               Utilities, Services. Landlord shall provide, subject to the terms of this Section 11, water, electricity, heat, light, power, sewer, and other utilities (including gas and fire sprinklers to the extent the Project is plumbed for such services), refuse and trash collection and janitorial services (collectively, “Utilities”). Landlord shall pay, as Operating Expenses or subject to Tenant’s reimbursement obligation, for all Utilities used on the Premises, all maintenance charges for Utilities, and any storm sewer charges or other similar charges for Utilities imposed by any Governmental Authority or Utility provider, and any taxes, penalties, surcharges or similar charges thereon. Landlord may cause, at Landlord’s expense, any Utilities to be separately metered or charged directly to Tenant by the provider. Tenant shall pay directly to the Utility provider, prior to delinquency, any separately metered Utilities and services which may be furnished to Tenant or the Premises during the Term. Tenant shall pay, as part of Operating Expenses, its share of all charges for jointly metered Utilities based upon consumption, as reasonably determined by Landlord. No interruption or failure of Utilities, from any cause whatsoever other than Landlord’s willful misconduct, shall result in eviction or constructive eviction of Tenant, termination of this Lease or the abatement of Rent. Tenant agrees to limit use of water and sewer with respect to Common Areas to normal restroom use.

 

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Landlord’s sole obligation for either providing emergency generators or providing emergency back-up power to Tenant shall be:  (i) to provide emergency generators with not less than the capacity of the emergency generators located in the Building as of the Commencement Date, and (ii) to contract with a third party to maintain the emergency generators as per the manufacturer’s standard maintenance guidelines.  Landlord shall have no obligation to provide Tenant with operational emergency generators or back-up power or to supervise, oversee or confirm that the third party maintaining the emergency generators is maintaining the generators as per the manufacturer’s standard guidelines or otherwise.  During any period of replacement, repair or maintenance of the emergency generators when the emergency generators are not operational, including any delays thereto due to the inability to obtain parts or replacement equipment, Landlord shall have no obligation to provide Tenant with an alternative back-up generator or generators or alternative sources of back-up power.  At least once per month as part of the maintenance of the Building, Landlord shall run the emergency generator for a period reasonably determined by Landlord for the purpose of determining whether it operates when started.  Tenant expressly acknowledges and agrees that Landlord does not guaranty that such emergency generators will be operational at all times or that emergency power will be available to the Premises when needed.

 

12.                               Alterations and Tenant’s Property.  Any alterations, additions, or improvements made to the Premises by or on behalf of Tenant, including additional locks or bolts of any kind or nature upon any doors or windows in the Premises, but excluding installation, removal or realignment of furniture systems (other than removal of furniture systems owned or paid for by Landlord) not involving any modifications to the structure or connections (other than by ordinary plugs or jacks) to Building Systems (as defined in Section 13) (“Alterations”) shall be subject to Landlord’s prior written consent, which may be given or withheld in Landlord’s sole discretion if any such Alteration affects the structure or Building Systems and shall not be otherwise unreasonably withheld, conditioned or delayed.  Tenant may construct nonstructural cosmetic Alterations in the Premises without Landlord’s prior approval if the aggregate cost of all such work in any 12 month period does not exceed $50,000 (a “Notice-Only Alteration”), provided Tenant notifies Landlord in writing of such intended Notice-Only Alteration, and such notice shall be accompanied by plans, specifications, work contracts and such other information concerning the nature and cost of the Notice-Only Alteration as may be reasonably requested by Landlord, which notice and accompanying materials shall be delivered to Landlord not less than 15 business days in advance of any proposed construction.  If Landlord approves any Alterations, Landlord may impose such conditions on Tenant in connection with the commencement, performance and completion of such Alterations as Landlord may deem appropriate in Landlord’s sole and absolute discretion.  Any request for approval shall be in writing, delivered not less than 15 business days in advance of any proposed construction, and accompanied by plans, specifications, bid proposals, work contracts and such other information concerning the nature and cost of the alterations as may be reasonably requested by Landlord, including the identities and mailing addresses of all persons performing work or supplying materials.  Landlord’s right to review plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to ensure that such plans and specifications or construction comply with applicable Legal Requirements.  Tenant shall cause, at its sole cost and expense, all Alterations to comply with insurance requirements and with Legal Requirements and shall implement at its sole cost and expense any alteration or modification required by Legal Requirements as a result of any Alterations.  Tenant shall pay to Landlord, as Additional Rent, on demand an amount equal to 5% of all charges incurred by Tenant or its contractors or agents in connection with any Alteration to cover Landlord’s overhead and expenses for plan review, coordination, scheduling and supervision.  Before Tenant begins any Alteration, Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable law.  Tenant shall reimburse Landlord for, and indemnify and hold Landlord harmless from, any expense incurred by Landlord by reason of faulty work done by Tenant or its contractors, delays caused by such work, or inadequate cleanup.

 

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Tenant shall furnish security or make other arrangements satisfactory to Landlord to assure payment for the completion of all Alterations work free and clear of liens, and shall provide (and cause each contractor or subcontractor to provide) certificates of insurance for workers’ compensation and other coverage in amounts and from an insurance company satisfactory to Landlord protecting Landlord against liability for personal injury or property damage during construction.  Upon completion of any Alterations, Tenant shall deliver to Landlord:  (i) sworn statements setting forth the names of all contractors and subcontractors who did the work and final lien waivers from all such contractors and subcontractors; and (ii) “as built” plans for any such Alteration.

 

Except for Removable Installations (as hereinafter defined), all Installations (as hereinafter defined) shall be and shall remain the property of Landlord during the Term and following the expiration or earlier termination of the Term, shall not be removed by Tenant at any time during the Term, and shall remain upon and be surrendered with the Premises as a part thereof.  Notwithstanding the foregoing, Landlord may, at the time its approval of any such Installation is requested, or at the time it receives notice of a Notice-Only Alteration, notify Tenant that Landlord requires that Tenant remove such Installation upon the expiration or earlier termination of the Term, in which event Tenant shall remove such Installation in accordance with the immediately succeeding sentence.  Upon the expiration or earlier termination of the Term, Tenant shall remove (i) all wires, cables or similar equipment which Tenant has installed in the Premises or in the risers or plenums of the Building, (ii) any Installations for which Landlord has given Tenant notice of removal in accordance with the immediately preceding sentence, and (iii) all of Tenant’s Property (as hereinafter defined), and Tenant shall restore and repair any damage caused by or occasioned as a result of such removal, including, without limitation, capping off all such connections behind the walls of the Premises and repairing any holes.  During any restoration period beyond the expiration or earlier termination of the Term, Tenant shall pay Rent to Landlord as provided herein as if said space were otherwise occupied by Tenant.  If Landlord is requested by Tenant or any lender, lessor or other person or entity claiming an interest in any of Tenant’s Property to waive any lien Landlord may have against any of Tenant’s Property, and Landlord consents to such waiver, then Landlord shall be entitled to be paid as administrative rent a fee of $1,000 per occurrence for its time and effort in preparing and negotiating such a waiver of lien.

 

For purposes of this Lease, (x) “Removable Installations” means any items listed on Exhibit F attached hereto and any items agreed by Landlord in writing to be included on Exhibit F in the future, (y) “Tenant’s Property” means Removable Installations and, other than Installations, any personal property or equipment of Tenant that may be removed without material damage to the Premises, and (z) “Installations” means all property of any kind paid for by Landlord, all Alterations, all fixtures, and all partitions, hardware, built-in machinery, built-in casework and cabinets and other similar additions, equipment, property and improvements built into the Premises so as to become an integral part of the Premises, including, without limitation, fume hoods which penetrate the roof or plenum area, built-in cold rooms, built-in warm rooms, walk-in cold rooms, walk-in warm rooms, deionized water systems, glass washing equipment, autoclaves, chillers, built-in plumbing, electrical and mechanical equipment and systems, and any power generator and transfer switch.

 

13.                               Landlord’s Repairs.  Landlord, as an Operating Expense, shall maintain all of the structural, exterior, parking and other Common Areas of the Project, including HVAC, plumbing, fire sprinklers, elevators and all other building systems serving the Premises and other portions of the Project (“Building Systems”), in good repair, reasonable wear and tear and uninsured losses and damages caused by Tenant, or by any of Tenant’s agents, servants, employees, invitees and contractors (collectively, “Tenant Parties”) excluded.  Losses and damages caused by Tenant or any Tenant Party shall be repaired by Landlord, to the extent not covered by insurance, at Tenant’s sole cost and expense.  Landlord reserves the right to stop Building Systems services when necessary (i) by reason of accident or

 

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emergency, or (ii) for planned repairs, alterations or improvements, which are, in the judgment of Landlord, desirable or necessary to be made, until said repairs, alterations or improvements shall have been completed.  Landlord shall have no responsibility or liability for failure to supply Building Systems services during any such period of interruption; provided, however, that Landlord shall, except in case of emergency, make a commercially reasonable effort to give Tenant 72 hours advance notice of any planned stoppage of Building Systems services for routine maintenance, repairs, alterations or improvements.  Tenant shall promptly give Landlord written notice of any repair required by Landlord pursuant to this Section, after which Landlord shall make a commercially reasonable effort to effect such repair.  Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after Tenant’s written notice of the need for such repairs or maintenance.  Tenant waives its rights under any state or local law to terminate this Lease or to make such repairs at Landlord’s expense and agrees that the parties’ respective rights with respect to such matters shall be solely as set forth herein.  Repairs required as the result of fire, earthquake, flood, vandalism, war, or similar cause of damage or destruction shall be controlled by Section 18.

 

14.                               Tenant’s Repairs.  Subject to Section 13 hereof, Tenant, at its expense, shall repair, replace and maintain in good condition all portions of the Premises, including, without limitation, entries, doors, ceilings, interior windows, interior walls, and the interior side of demising walls.  Such repair and replacement may include capital expenditures and repairs whose benefit may extend beyond the Term.  Should Tenant fail to make any such repair or replacement or fail to maintain the Premises, Landlord shall give Tenant notice of such failure.  If Tenant fails to commence cure of such failure within 10 days of Landlord’s notice, and thereafter diligently prosecute such cure to completion, Landlord may perform such work and shall be reimbursed by Tenant within 10 business days after demand therefor; provided, however, that if such failure by Tenant creates or could create an emergency, Landlord may immediately commence cure of such failure and shall thereafter be entitled to recover the costs of such cure from Tenant.  Subject to Sections 17 and 18, Tenant shall bear the full uninsured cost of any repair or replacement to any part of the Project that results from damage caused by Tenant or any Tenant Party and any repair that benefits only the Premises.

 

15.                               Mechanic’s Liens.  Tenant shall discharge, by bond or otherwise, any mechanic’s lien filed against the Premises or against the Project for work claimed to have been done for, or materials claimed to have been furnished to, Tenant within 10 days after the filing thereof, at Tenant’s sole cost and shall otherwise keep the Premises and the Project free from any liens arising out of work performed, materials furnished or obligations incurred by Tenant.  Should Tenant fail to discharge any lien described herein, Landlord shall have the right, but not the obligation, to pay such claim or post a bond or otherwise provide security to eliminate the lien as a claim against title to the Project and the cost thereof shall be immediately due from Tenant as Additional Rent.  If Tenant shall lease or finance the acquisition of office equipment, furnishings, or other personal property of a removable nature utilized by Tenant in the operation of Tenant’s business, Tenant warrants that any Uniform Commercial Code Financing Statement filed as a matter of public record by any lessor or creditor of Tenant will upon its face or by exhibit thereto indicate that such Financing Statement is applicable only to removable personal property of Tenant located within the Premises.  In no event shall the address of the Project be furnished on the statement without qualifying language as to applicability of the lien only to removable personal property, located in an identified suite held by Tenant.

 

16.                               Indemnification.  Tenant hereby indemnifies and agrees to defend, save and hold Landlord harmless from and against any and all Claims for injury or death to persons or damage to property occurring within or about the Premises, arising directly or indirectly out of use or occupancy of the Premises or a breach or default by Tenant in the performance of any of its obligations hereunder, except to the extent caused by the willful misconduct or negligence of Landlord.  Landlord shall not be

 

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liable to Tenant for, and Tenant assumes all risk of damage to, personal property (including, without limitation, loss of records kept within the Premises).  Tenant further waives any and all Claims for injury to Tenant’s business or loss of income relating to any such damage or destruction of personal property (including, without limitation, any loss of records).  Landlord shall not be liable for any damages arising from any act, omission or neglect of any tenant in the Project or of any other third party.

 

17.                               Insurance.  Landlord shall maintain all risk property and, if applicable, sprinkler damage insurance covering the full replacement cost of the Project or such lesser coverage amount as Landlord may elect provided such coverage amount is not less than 90% of such full replacement cost.  Landlord shall further procure and maintain commercial general liability insurance with a single loss limit of not less than $2,000,000 for bodily injury and property damage with respect to the Project.  Landlord may, but is not obligated to, maintain such other insurance and additional coverages as it may deem necessary, including, but not limited to, flood, environmental hazard and earthquake, loss or failure of building equipment, errors and omissions, rental loss during the period of repair or rebuilding, workers’ compensation insurance and fidelity bonds for employees employed to perform services and insurance for any improvements installed by Tenant or which are in addition to the standard improvements customarily furnished by Landlord without regard to whether or not such are made a part of the Project.  All such insurance shall be included as part of the Operating Expenses.  The Project may be included in a blanket policy (in which case the cost of such insurance allocable to the Project will be determined by Landlord based upon the insurer’s cost calculations).  Tenant shall also reimburse Landlord for any increased premiums or additional insurance which Landlord reasonably deems necessary as a result of Tenant’s use of the Premises.

 

Tenant, at its sole cost and expense, shall maintain during the Term:  all risk property insurance with business interruption and extra expense coverage, covering the full replacement cost of all property and improvements installed or placed in the Premises by Tenant at Tenant’s expense; workers’ compensation insurance with no less than the minimum limits required by law; employer’s liability insurance with such limits as required by law; and commercial general liability insurance, with a minimum limit of not less than $2,000,000 per occurrence for bodily injury and property damage with respect to the Premises.  The commercial general liability insurance policy shall name Alexandria Real Estate Equities, Inc., and Landlord, its officers, directors, employees, managers and agents (collectively, “Landlord Parties”), as additional insureds; insure on an occurrence and not a claims-made basis; be issued by insurance companies which have a rating of not less than policyholder rating of A and financial category rating of at least Class X in “Best’s Insurance Guide”; shall not be cancelable for nonpayment of premium unless 30 days prior written notice shall have been given to Landlord from the insurer; contain a hostile fire endorsement and a contractual liability endorsement; and provide primary coverage to Landlord (any policy issued to Landlord providing duplicate or similar coverage shall be deemed excess over Tenant’s policies).  Certificates of insurance snowing the limits of coverage required hereunder and showing Landlord as an additional insured shall be delivered to Landlord by Tenant upon commencement of the Term and upon each renewal of said insurance.  Tenant’s policy shall include an aggregate per location endorsement which specifically provides that the amount of insurance shall not be prejudiced by other losses covered by the policy.  Tenant shall, prior to the expiration of such policies, furnish Landlord with renewal certificates.

 

In each instance where insurance is to name Landlord as an additional insured, Tenant shall upon written request of Landlord also designate and furnish certificates so evidencing Landlord as additional insured to:  (i) any lender of Landlord holding a security interest in the Project or any portion thereof, (ii) the landlord under any lease wherein Landlord is tenant of the real property on which the Project is located, if the interest of Landlord is or shall become that of a tenant under a ground or other underlying

 

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lease rather than that of a fee owner, and/or (iii) any management company retained by Landlord to manage the Project.

 

The property insurance obtained by Landlord and Tenant shall include a waiver of subrogation by the insurers and all rights based upon an assignment from its insured, against Landlord or Tenant, and their respective officers, directors, employees, managers and agents (“Related Parties”), in connection with any loss or damage thereby insured against.  Neither party nor its respective Related Parties shall be liable to the other for loss or damage caused by any risk insured against under property insurance required to be maintained hereunder, and each party waives any claims against the other party, and its respective Related Parties, for such loss or damage.  The failure of a party to insure its property shall not void this waiver.  Landlord and its respective Related Parties shall not be liable for, and Tenant hereby waives all claims against such parties for, business interruption and losses occasioned thereby sustained by Tenant or any person claiming through Tenant resulting from any accident or occurrence in or upon the Premises or the Project from any cause whatsoever.  If the foregoing waivers shall contravene any law with respect to exculpatory agreements, the liability of Landlord or Tenant shall be deemed not released but shall be secondary to the other’s insurer.

 

Landlord may require insurance policy limits to be raised to conform with requirements of Landlord’s lender and/or to bring coverage limits to levels then being generally required of new tenants within the Project.

 

18.                               Restoration.  If, at any time during the Term, the Project or the Premises are damaged or destroyed by a fire or other insured casualty, Landlord shall notify Tenant within 45 days after discovery of such damage as to the amount of time Landlord reasonably estimates it will take to restore the Project or the Premises, as applicable (the “Restoration Period”).  If the Restoration Period is estimated to exceed 9 months (the “Maximum Restoration Period”), Landlord may, in such notice, elect to terminate this Lease as of the date that is 75 days after the date of discovery of such damage or destruction; provided, however, that notwithstanding Landlord’s election to restore, Tenant may elect to terminate this Lease by written notice to Landlord delivered within 5 business days of receipt of a notice from Landlord estimating a Restoration Period for the Premises longer than the Maximum Restoration Period.  If Tenant has not exercised its Extension Right pursuant to Section 40, Tenant may also terminate this Lease by written notice to Landlord delivered within 5 business days after receipt of a notice estimating the date on which the Restoration Period is expected to occur if the Restoration Period is estimated by Landlord to be completed during the last 12 months of the Base Term.  Unless either Landlord or Tenant so elects to terminate this Lease, Landlord shall, subject to receipt of sufficient insurance proceeds (with any deductible to be treated as a current Operating Expense), promptly restore the Premises (excluding the improvements installed by Tenant or by Landlord and paid for by Tenant), subject to delays arising from the collection of insurance proceeds, from Force Majeure events or as needed to obtain any license, clearance or other authorization of any kind required to enter into and restore the Premises issued by any Governmental Authority having jurisdiction over the use, storage, handling, treatment, generation, release, disposal, removal or remediation of Hazardous Materials (as defined in Section 30) in, on or about the Premises (collectively referred to herein as “Hazardous Materials Clearances”); provided, however, that if repair or restoration of the Premises is not substantially complete as of the end of the Maximum Restoration Period or, if longer, the Restoration Period, Landlord may, in its sole and absolute discretion, elect not to proceed with such repair and restoration, or Tenant may by written notice to Landlord delivered within 5 business days of the expiration of the Maximum Restoration Period or, if longer, the Restoration Period, elect to terminate this Lease, in which event Landlord shall be relieved of its obligation to make such repairs or restoration and this Lease shall terminate as of the date that is 75 days after the later of:  (i) discovery of such damage or destruction, or (ii) the date all required Hazardous

 

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Materials Clearances are obtained, but Landlord shall retain any Rent paid and the right to any Rent payable by Tenant prior to such election by Landlord or Tenant.

 

Tenant, at its expense, shall promptly perform, subject to delays arising from the collection of insurance proceeds, from Force Majeure (as defined in Section 34) events or to obtain Hazardous Material Clearances, all repairs or restoration not required to be done by Landlord and shall promptly re-enter the Premises and commence doing business in accordance with this Lease.  Notwithstanding the foregoing, either Landlord or Tenant may terminate this Lease upon written notice to the other if the Premises are damaged during the last year of the Term and Landlord reasonably estimates that it will take more than 2 months to repair such damage; provided, however, that such notice is delivered within 10 business days after the date that Landlord provides Tenant with written notice of the estimated Restoration Period.  Landlord shall also have the right to terminate this Lease if insurance proceeds are not available for such restoration.  Rent shall be abated from the date all required Hazardous Material Clearances are obtained until the Premises are repaired and restored, in the proportion which the area of the Premises, if any, which is not usable by Tenant bears to the total area of the Premises, unless Landlord provides Tenant with other space reasonably acceptable to Tenant during the period of repair that is suitable for the temporary conduct of Tenant’s business.  In the event that no Hazardous Material Clearances are required to be obtained by Tenant with respect to the Premises, rent abatement shall commence on the date of discovery of the damage or destruction.  Such abatement shall be the sole remedy of Tenant, and except as provided in this Section 18, Tenant waives any right to terminate the Lease by reason of damage or casualty loss.

 

The provisions of this Lease, including this Section 18, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, or any other portion of the Project, and any statute or regulation which is now or may hereafter be in effect shall have no application to this Lease or any damage or destruction to all or any part of the Premises or any other portion of the Project, the parties hereto expressly agreeing that this Section 18 sets forth their entire understanding and agreement with respect to such matters.

 

19.                               Condemnation.  If the whole or any material part of the Premises or the Project is taken for any public or quasi-public use under governmental law, ordinance, or regulation, or by right of eminent domain, or by private purchase in lieu thereof (a “Taking” or “Taken”), and the Taking would in Landlord’s reasonable judgment, impair Landlord’s ownership or operation of the Project or would in the reasonable judgment of Landlord and Tenant either prevent or materially interfere with Tenant’s use of the Premises (as resolved, if the parties are unable to agree, by arbitration by a single arbitrator with the qualifications and experience appropriate to resolve the matter and appointed pursuant to and acting in accordance with the rules of the American Arbitration Association), then upon written notice by Landlord or Tenant to the other this Lease shall terminate and Rent shall be apportioned as of said date.  If part of the Premises shall be Taken, and this Lease is not terminated as provided above, Landlord shall promptly restore the Premises and the Project as nearly as is commercially reasonable under the circumstances to their condition prior to such partial Taking and the rentable square footage of the Building, the rentable square footage of the Premises, Tenant’s Share of Operating Expenses and the Rent payable hereunder during the unexpired Term shall be reduced to such extent as may be fair and reasonable under the circumstances.  Upon any such Taking, Landlord shall be entitled to receive the entire price or award from any such Taking without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant’s interest, if any, in such award.  Tenant shall have the right, to the extent that same shall not diminish Landlord’s award, to make a separate claim against the condemning authority (but not Landlord) for such compensation as may be separately awarded or recoverable by Tenant for moving expenses and damage to Tenant’s trade fixtures, if a separate award for such items is made to Tenant.  Tenant hereby waives

 

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any and all rights it might otherwise have pursuant to any provision of state law to terminate this Lease upon a partial Taking of the Premises or the Project.

 

20.                               Events of Default.  Each of the following events shall be a default (“Default”) by Tenant under this Lease:

 

(a)                                 Payment Defaults.  Tenant shall fail to pay any installment of Rent or any other payment hereunder when due.

 

(b)                                 Insurance.  Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or shall be reduced or materially changed, or Landlord shall receive a notice of nonrenewal of any such insurance and Tenant shall fail to obtain replacement insurance at least 20 days before the expiration of the current coverage.

 

(c)                                  Abandonment.  Tenant shall abandon the Premises.  Tenant shall not be deemed to have abandoned the Premises if (i) Tenant provides Landlord with reasonable advance notice prior to vacating and, at the time of vacating the Premises, Tenant completes Tenant’s obligations with respect to the Surrender Plan in compliance with Section 28 (Tenant will not be required prepare another Surrender Plan at the expiration or earlier termination of the Term if Tenant does not re-enter the Premises following such abandonment), (ii) Tenant has made reasonable arrangements with Landlord for the security of the Premises for the balance of the Term, and (iii) Tenant continues during the balance of the Term to satisfy all of its obligations under the Lease as they come due.

 

(d)                                 Improper Transfer.  Tenant shall assign, sublease or otherwise transfer or attempt to transfer all or any portion of Tenant’s interest in this Lease or the Premises except as expressly permitted herein, or Tenant’s interest in this Lease shall be attached, executed upon, or otherwise judicially seized and such action is not released within 90 days of the action.

 

(e)                                  Liens.  Tenant shall fail to discharge or otherwise obtain the release of any lien placed upon the Premises in violation of this Lease within 10 days after any such lien is filed against the Premises.

 

(f)                                   Insolvency Events.  Tenant or any guarantor or surety of Tenant’s obligations hereunder shall:  (A) make a general assignment for the benefit of creditors; (B) commence any case, proceeding or other action seeking to have an order for relief entered on its behalf as a debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or of any substantial part of its property (collectively a “Proceeding for Relief”); (C) become the subject of any Proceeding for Relief which is not dismissed within 90 days of its filing or entry; or (D) die or suffer a legal disability (if Tenant, guarantor, or surety is an individual) or be dissolved or otherwise fail to maintain its legal existence (if Tenant, guarantor or surety is a corporation, partnership or other entity).

 

(g)                                  Estoppel Certificate or Subordination Agreement.  Tenant fails to execute any document required from Tenant under Sections 23 or 27 within 5 days after a second notice requesting such document.

 

(h)                                 Other Defaults.  Tenant shall fail to comply with any provision of this Lease other than those specifically referred to in this Section 20, and, except as otherwise expressly provided herein, such failure shall continue for a period of 10 days after written notice thereof from Landlord to Tenant.

 

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Any notice given under Section 20(h) hereof shall:  (i) specify the alleged default, (ii) demand that Tenant cure such default, (iii) be in lieu of, and not in addition to, or shall be deemed to be, any notice required under any provision of applicable law, and (iv) not be deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such notice; provided that if the nature of Tenant’s default pursuant to Section 20(h) is such that it cannot be cured by the payment of money and reasonably requires more than 10 days to cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said 10 day period and thereafter diligently prosecutes the same to completion; provided, however, that such cure shall be completed no later than 30 days from the date of Landlord’s notice.

 

21.                               Landlord’s Remedies.

 

(a)                                 Payment By Landlord; Interest.  Upon a Default by Tenant hereunder, Landlord may, without waiving or releasing any obligation of Tenant hereunder, make such payment or perform such act.  All sums so paid or incurred by Landlord, together with interest thereon, from the date such sums were paid or incurred, at the annual rate equal to 12% per annum or the highest rate permitted by law (the “Default Rate”), whichever is less, shall be payable to Landlord on demand as Additional Rent.  Nothing herein shall be construed to create or impose a duty on Landlord to mitigate any damages resulting from Tenant’s Default hereunder.

 

(b)                                 Late Payment Rent.  Late payment by Tenant to Landlord of Rent and other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult and impracticable to ascertain.  Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on Landlord under any Mortgage covering the Premises.  Therefore, if any installment of Rent due from Tenant is not received by Landlord within 5 days after the date such payment is due, Tenant shall pay to Landlord an additional sum of 6% of the overdue Rent as a late charge.  Notwithstanding the foregoing, before assessing a late charge the first time in any calendar year, Landlord shall provide Tenant written notice of the delinquency and will waive the right if Tenant pays such delinquency within 5 days thereafter.  The parties agree that this late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.  In addition to the late charge, Rent not paid when due shall bear interest at the Default Rate from the 5th day after the date due until paid.

 

(c)                                  Remedies.  Upon the occurrence of a Default, Landlord, at its option, without further notice or demand to Tenant, shall have in addition to all other rights and remedies provided in this Lease, at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever.  No cure in whole or in part of such Default by Tenant after Landlord has taken any action beyond giving Tenant notice of such Default to pursue any remedy provided for herein (including retaining counsel to file an action or otherwise pursue any remedies) shall in any way affect Landlord’s right to pursue such remedy or any other remedy provided Landlord herein or under law or in equity, unless Landlord, in its sole discretion, elects to waive such Default.

 

(i)                                     This Lease and the Term and estate hereby granted are subject to the limitation that whenever a Default shall have happened and be continuing, Landlord shall have the right, at its election, then or thereafter while any such Default shall continue and notwithstanding the fact that Landlord may have some other remedy hereunder or at law or in equity, to give Tenant written notice of Landlord’s intention to terminate this Lease on a date specified in such notice, which date shall be not less than 5 days after the giving of such notice, and upon the date so specified, this Lease and the estate hereby granted shall expire and terminate with the same force and effect as if the date specified in such notice were the date hereinbefore fixed for the expiration of this Lease, and all right of Tenant hereunder shall expire and terminate, and Tenant 

 

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shall be liable as hereinafter in this Section 21(c) provided.  If any such notice is given, Landlord shall have, on such date so specified, the right of re-entry and possession of the Premises and the right to remove all persons and property therefrom and to store such property in a warehouse or elsewhere at the risk and expense, and for the account, of Tenant.  Should Landlord elect to re-enter as herein provided or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided for by law, Landlord may from time to time re-let the Premises or any part thereof for such term or terms and at such rental or rentals and upon such terms and conditions as Landlord may deem advisable, with the right to make commercially reasonable alterations in and repairs to the Premises.

 

(ii)                                  In the event of any termination of this Lease as in this Section 21 provided or as required or permitted by law or in equity, Tenant shall forthwith quit and surrender the Premises to Landlord, and Landlord may, without further notice, enter upon, re-enter, possess and repossess the same by summary proceedings, ejectment or otherwise, and again have, repossess and enjoy the same as if this Lease had not been made, and in any such event Tenant and no person claiming through or under Tenant by virtue of any law or an order of any court shall be entitled to possession or to remain in possession of the Premises.  Landlord, at its option, notwithstanding any other provision of this Lease, shall be entitled to recover from Tenant, as and for liquidated damages, the sum of:

 

(A)                               all Base Rent, Additional Rent and other amounts payable by Tenant hereunder then due or accrued and unpaid:  and

 

(B)                               the amount equal to the aggregate of all unpaid Base Rent and Additional Rent which would have been payable if this Lease had not been terminated prior to the end of the Term then in effect, discounted to its then present value in accordance with accepted financial practice using a rate of 5% per annum, for loss of the bargain; and

 

(C)                               all other damages and expenses (including attorneys’ fees and expenses), if any, which Landlord shall have sustained by reason of the breach of any provision of this Lease; less

 

(D)                               the net proceeds of any re-letting actually received by Landlord and the amount of damages which Tenant proves could have been avoided had Landlord taken reasonable steps to mitigate its damages.

 

(iii)                               Nothing herein contained shall limit or prejudice the right of Landlord, in any bankruptcy or insolvency proceeding, to prove for and obtain as liquidated damages by reason of such termination an amount equal to the maximum allowed by any bankruptcy or insolvency proceedings, or to prove for and obtain as liquidated damages by reason of such termination, an amount equal to the maximum allowed by any statute or rule of law, but in each case not more than the amount to which Landlord would otherwise be entitled under this Section 21.

 

(iv)                              Nothing in this Section 21 shall be deemed to affect the right of either party to indemnifications pursuant to this Lease.

 

(v)                                 If Landlord terminates this Lease upon the occurrence of a Default, Tenant will quit and surrender the Premises to Landlord or its agents, and Landlord may, without further notice, enter upon, re-enter and repossess the Premises by summary proceedings, ejectment or otherwise.  The words “enter”, “re-enter”, and “re-entry” are not restricted to their technical legal meanings.

 

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(vi)                              If either party shall be in default in the observance or performance of any provision of this Lease, and an action shall be brought for the enforcement thereof, the non-prevailing party shall pay to the prevailing party all fees, costs and other expenses which may become payable as a result thereof or in connection therewith, including attorneys’ fees and expenses.

 

(vii)                           If Tenant shall default in the keeping, observance or performance of any covenant, agreement, term, provision or condition herein contained, Landlord, without thereby waiving such default, may perform the same for the account and at the expense of Tenant (a) immediately or at any time thereafter and without notice in the case of emergency or in case such default will result in a violation of any legal or insurance requirements, or in the imposition of any lien against all or any portion of the Premises (but only after Tenant has failed to respond to such lien as permitted by Section 15 within the time period provided in Section 15), and (b) in any other case if such default continues after any applicable notice and cure period provided in Section 21.  All reasonable costs and expenses incurred by Landlord in connection with any such performance by it for the account of Tenant and also all reasonable costs and expenses, including attorneys’ fees and disbursements incurred by Landlord in any action or proceeding (including any summary dispossess proceeding) brought by Landlord to enforce any obligation of Tenant under this Lease and/or right of Landlord in or to the Premises, shall be paid by Tenant to Landlord within 10 days after demand.

 

(viii)                        Independent of the exercise of any other remedy of Landlord hereunder or under applicable law, Landlord may conduct an environmental test of the Premises as generally described in Section 30(d), at Tenant’s expense, to the extent provided in Section 30(d).

 

(ix)                              In the event that Tenant is in breach or Default under this Lease, whether or not Landlord exercises its right to terminate or any other remedy, Tenant shall reimburse Landlord upon demand for any costs and expenses that Landlord may incur in connection with any such breach or Default, as provided in this Section 21(c).  Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or otherwise.  Tenant shall also indemnify Landlord against and hold Landlord harmless from all costs, expenses, demands and liability, including without limitation, legal fees and costs Landlord shall incur if Landlord shall become or be made a party to any claim or action instituted by Tenant against any third party, or by any third party against Tenant, or by or against any person holding any interest under or using the Premises by license of or agreement with Tenant.

 

Except as otherwise provided in this Section 21, no right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and every right and remedy shall be cumulative and in addition to any other legal or equitable right or remedy given hereunder, or now or hereafter existing.  No waiver of any provision of this Lease shall be deemed to have been made unless expressly so made in writing.  Landlord shall be entitled, to the extent permitted by law, to seek injunctive relief in case of the violation, or attempted or threatened violation, of any provision of this Lease, or to seek a decree compelling observance or performance of any provision of this Lease, or to seek any other legal or equitable remedy.

 

22.                               Assignment and Subletting.

 

(a)                                 General Prohibition.  Without Landlord’s prior written consent subject to and on the conditions described in Section 22(b) below, Tenant shall not, directly or indirectly, voluntarily or by operation of law, assign this Lease or sublease the Premises or any part thereof or mortgage, pledge, or hypothecate its leasehold interest or grant any concession or license within the Premises, and any attempt 

 

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to do any of the foregoing shall be void and of no effect.  If Tenant is a corporation, partnership or limited liability company, the shares or other ownership interests thereof which are not actively traded upon a stock exchange or in the over-the-counter market, a transfer or series of transfers whereby 25% or more of the issued and outstanding shares or other ownership interests of such corporation are, or voting control is, transferred (but excepting transfers upon deaths of individual owners) from a person or persons or entity or entities which were owners thereof at time of execution of this Lease to persons or entities who were not owners of shares or other ownership interests of the corporation, partnership or limited liability company at time of execution of this Lease, shall be deemed an assignment of this Lease requiring the consent of Landlord as provided in this Section 22.  Notwithstanding the foregoing, Tenant shall have the right to obtain financing from institutional investors (including venture capital funding and corporate partners) which regularly invest in private biotechnology companies or undergo a public offering which results in a change in control of Tenant without such change of control constituting an assignment under this Section 22 requiring Landlord consent, provided that (i) Tenant notifies Landlord in writing of the financing at least 5 business days prior to the closing of the financing, and (ii) provided that in no event shall such financing result in a change in use of the Premises from the use contemplated by Tenant at the commencement of the Term.

 

(b)                                 Permitted Transfers.  If Tenant desires to assign, sublease, hypothecate or otherwise transfer this Lease or sublet the Premises other than pursuant to a Permitted Assignment (as defined below), then at least 15 business days, but not more than 45 business days, before the date Tenant desires the assignment or sublease to be effective (the “Assignment Date”), Tenant shall give Landlord a notice (the “Assignment Notice”) containing such information about the proposed assignee or sublessee, including the proposed use of the Premises and any Hazardous Materials proposed to be used, stored handled, treated, generated in or released or disposed of from the Premises, the Assignment Date, any relationship between Tenant and the proposed assignee or sublessee, and all material terms and conditions of the proposed assignment or sublease, including a copy of any proposed assignment or sublease in its final form, and such other information as Landlord may deem reasonably necessary or appropriate to its consideration whether to grant its consent.  Landlord may, by giving written notice to Tenant within 15 business days after receipt of the Assignment Notice:  (i) grant such consent, (ii) refuse such consent, in its reasonable discretion; or (iii) terminate this Lease with respect to the space described in the Assignment Notice as of the Assignment Date (an “Assignment Termination”).  Among other reasons, it shall be reasonable for Landlord to withhold its consent in any of these instances:  (1) the proposed assignee or subtenant is a governmental agency; (2) in Landlord’s reasonable judgment, the use of the Premises by the proposed assignee or subtenant would entail any alterations that would lessen the value of the leasehold improvements in the Premises, or would require increased services by Landlord; (3) in Landlord’s reasonable judgment, the proposed assignee or subtenant is engaged in areas of scientific research or other business concerns that are controversial; (4) in Landlord’s reasonable judgment, the proposed assignee or subtenant lacks the creditworthiness to support the financial obligations it will incur under the proposed assignment or sublease; (5) in Landlord’s reasonable judgment, the character, reputation, or business of the proposed assignee or subtenant is inconsistent with the desired tenant-mix or the quality of other tenancies in the Project or is inconsistent with the type and quality of the nature of the Building; (6) Landlord has received from any prior landlord to the proposed assignee or subtenant a negative report concerning such prior landlord’s experience with the proposed assignee or subtenant; (7) Landlord has experienced previous defaults by or is in litigation with the proposed assignee or subtenant; (8) the use of the Premises by the proposed assignee or subtenant will violate any applicable Legal Requirement; (9) the proposed assignee or subtenant, or any entity that, directly or indirectly, controls, is controlled by, or is under common control with the proposed assignee or subtenant, is then an occupant of the Project; (10) the proposed assignee or subtenant is an entity with whom Landlord is negotiating to lease space in the Project; or (11) the assignment or sublease is prohibited by Landlord’s lender.  If Landlord delivers notice of its election to exercise an Assignment Termination, Tenant shall have the

 

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right to withdraw such Assignment Notice by written notice to Landlord of such election within 5 business days after Landlord’s notice electing to exercise the Assignment Termination.  If Tenant withdraws such Assignment Notice, this Lease shall continue in full force and effect.  If Tenant does not withdraw such Assignment Notice, this Lease, and the term and estate herein granted, shall terminate as of the Assignment Date with respect to the space described in such Assignment Notice.  No failure of Landlord to exercise any such option to terminate this Lease, or to deliver a timely notice in response to the Assignment Notice, shall be deemed to be Landlord’s consent to the proposed assignment, sublease or other transfer.  Tenant shall pay to Landlord a fee equal to One Thousand Five Hundred Dollars ($1,500) in connection with its consideration of any Assignment Notice and/or its preparation or review of any consent documents.  Notwithstanding the foregoing, Tenant shall have the right to assign this Lease, upon 10 days prior written notice to Landlord (unless Tenant is prohibited from providing such notice by confidentiality or Legal Requirements in which case Tenant shall notify Landlord promptly thereafter) but without obtaining Landlord’s prior written consent, to a corporation or other entity which is a successor-in-interest to Tenant, by way of merger, consolidation or corporate reorganization, or by the purchase of all or substantially all of the assets or the ownership interests of Tenant provided that (i) such merger or consolidation, or such acquisition or assumption, as the case may be, is for a good business purpose and not principally for the purpose of transferring the Lease, and (ii) as of the date that is 1 day after the Permitted Assignment, the net worth (as determined in accordance with generally accepted accounting principles (“GAAP”)) of the assignee is not less than the greater of the net worth (as determined in accordance with GAAP) of Tenant as of (A) the Commencement Date, or (B) as of the date of Tenant’s most current quarterly or annual financial statements, and (iii) such assignee shall agree in writing to assume all of the terms, covenants and conditions of this Lease arising after the effective date of the assignment (a “Permitted Assignment”).

 

(c)                                  Additional Conditions.  As a condition to any such assignment or subletting, whether or not Landlord’s consent is required, Landlord may require:

 

(i)                                     that any assignee or subtenant agree, in writing at the time of such assignment or subletting, that if Landlord gives such party notice that Tenant is in default under this Lease, such party shall thereafter make all payments otherwise due Tenant directly to Landlord, which payments will be received by Landlord without any liability except to credit such payment against those due under the Lease, and any such third party shall agree to attorn to Landlord or its successors and assigns should this Lease be terminated for any reason; provided, however, in no event shall Landlord or its successors or assigns be obligated to accept such attornment; and

 

(ii)                                  A list of Hazardous Materials, certified by the proposed assignee or sublessee to be true and correct, which the proposed assignee or sublessee intends to use, store, handle, treat, generate in or release or dispose of from the Premises, together with copies of all documents relating to such use, storage, handling, treatment, generation, release or disposal of Hazardous Materials by the proposed assignee or subtenant in the Premises or on the Project, prior to the proposed assignment or subletting, including, without limitation:  permits; approvals; reports and correspondence; storage and management plans; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given its written consent to do so, which consent may be withheld in Landlord’s sole and absolute discretion); and all closure plans or any other documents required by any and all federal, state and local Governmental Authorities for any storage tanks installed in, on or under the Project for the closure of any such tanks.  Neither Tenant nor any such proposed assignee or subtenant is required, however, to provide Landlord with any portion(s) of the such documents containing information of a proprietary nature which, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities.

 

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(d)                                 No Release of Tenant, Sharing of Excess Rents.  Notwithstanding any assignment or subletting, Tenant and any guarantor or surety of Tenant’s obligations under this Lease shall at all times remain fully and primarily responsible and liable for the payment of Rent and for compliance with all of Tenant’s other obligations under this Lease.  If the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment plus any bonus or other consideration therefor or incident thereto in any form) exceeds the Rent payable under this Lease, (excluding however, any Rent payable under this Section) (“Excess Rent”), then Tenant shall be bound and obligated to pay Landlord as Additional Rent hereunder 50% of such Excess Rent within 10 days following receipt thereof by Tenant.  If Tenant shall sublet the Premises or any part thereof, Tenant hereby immediately and irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent from any such subletting, and Landlord as assignee and as attorney-in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply it toward Tenant’s obligations under this Lease; except that, until the occurrence of a Default, Tenant shall have the right to collect such rent.

 

(e)                                  No Waiver.  The consent by Landlord to an assignment or subletting shall not relieve Tenant or any assignees of this Lease or any sublessees of the Premises from obtaining the consent of Landlord to any further assignment or subletting nor shall it release Tenant or any assignee or sublessee of Tenant from full and primary liability under the Lease.  The acceptance of Rent hereunder, or the acceptance of performance of any other term, covenant, or condition thereof, from any other person or entity shall not be deemed to be a waiver of any of the provisions of this Lease or a consent to any subletting, assignment or other transfer of the Premises.

 

(f)                                   Prior Conduct of Proposed Transferee.  Notwithstanding any other provision of this Section 22, if (i) the proposed assignee or sublessee of Tenant has been required by any prior landlord, lender or Governmental Authority to take remedial action in connection with Hazardous Materials contaminating a property, where the contamination resulted from such party’s action or use of the property in question, (ii) the proposed assignee or sublessee is subject to an enforcement order issued by any Governmental Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority), or (iii) because of the existence of a pre-existing environmental condition in the vicinity of or underlying the Project, the risk that Landlord would be targeted as a responsible party in connection with the remediation of such pre-existing environmental condition would be materially increased or exacerbated by the proposed use of Hazardous Materials by such proposed assignee or sublessee, Landlord shall have the absolute right to refuse to consent to any assignment or subletting to any such party.

 

23.                               Estoppel Certificate.  Tenant shall, within 10 business days of written notice from Landlord, execute, acknowledge and deliver a statement in writing in any form reasonably requested by a proposed lender or purchaser, (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect) and the dates to which the rental and other charges are paid in advance, if any, (ii) acknowledging that there are not any uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, and (iii) setting forth such further information with respect to the status of this Lease or the Premises as may be requested thereon.  Notwithstanding the foregoing, in no event shall Tenant be required to make any statement or certification that Tenant reasonably determines contains misstatements of material facts.  Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the real property of which the Premises are a part.  Tenant’s failure to deliver such statement within such time shall, at the option of Landlord, constitute a Default under this Lease, and, in any event, shall be conclusive upon Tenant that the Lease is in full force 

 

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and effect and without modification except as may be represented by Landlord in any certificate prepared by Landlord and delivered to Tenant for execution.

 

24.                               Quiet Enjoyment.  So long as Tenant is not in Default under this Lease, Tenant shall, subject to the terms of this Lease, at all times during the Term, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord.

 

25.                               Prorations.  All prorations required or permitted to be made hereunder shall be made on the basis of a 360 day year and 30 day months.

 

26.                               Rules and Regulations.  Tenant shall, at all times during the Term and any extension thereof, comply with all reasonable rules and regulations at any time or from time to time established by Landlord covering use of the Premises and the Project.  The current rules and regulations are attached hereto as Exhibit E.  If there is any conflict between said rules and regulations and other provisions of this Lease, the terms and provisions of this Lease shall control.  Landlord shall not have any liability or obligation for the breach of any rules or regulations by other tenants in the Project and shall not enforce such rules and regulations in a discriminatory manner.

 

27.                               Subordination.  This Lease and Tenant’s interest and rights hereunder are hereby made and shall be subject and subordinate at all times to the lien of any Mortgage now existing or hereafter created on or against the Project or the Premises, and all amendments, restatements, renewals, modifications, consolidations, refinancing, assignments and extensions thereof, without the necessity of any further instrument or act on the part of Tenant; provided, however that so long as there is no Default hereunder, Tenant’s right to possession of the Premises shall not be disturbed by the Holder of any such Mortgage.  Tenant agrees, at the election of the Holder of any such Mortgage, to attorn to any such Holder.  Tenant agrees upon demand to execute, acknowledge and deliver such instruments, confirming such subordination, and such instruments of attornment as shall be requested by any such Holder, provided any such instruments contain appropriate non-disturbance provisions assuring Tenant’s quiet enjoyment of the Premises as set forth in Section 24 hereof.  Tenant hereby appoints Landlord attorney-in-fact for Tenant irrevocably (such power of attorney being coupled with an interest) to execute, acknowledge and deliver any such instrument and instruments for and in the name of Tenant and to cause any such instrument to be recorded.  Notwithstanding the foregoing, any such Holder may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by notice in writing to Tenant, and thereupon this Lease shall be deemed prior to such Mortgage without regard to their respective dates of execution, delivery or recording and in that event such Holder shall have the same rights with respect to this Lease as though this Lease had been executed prior to the execution, delivery and recording of such Mortgage and had been assigned to such Holder.  Notwithstanding the foregoing, in no event shall Tenant be required to execute any instruments pursuant to this Section 27 which Tenant reasonably determines contains misstatements of material facts in which case Tenant shall immediately notify Landlord in writing of the existence of such misstatements of material facts.  The term “Mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “Holder” of a Mortgage shall be deemed to include the beneficiary under a deed of trust.

 

28.                               Surrender.  Upon the expiration of the Term or earlier termination of Tenant’s right of possession, Tenant shall surrender the Premises to Landlord in the same condition as received, subject to any Alterations or Installations permitted by Landlord to remain in the Premises, free of Hazardous Materials brought upon, kept, used, stored, handled, treated, generated in, or released or disposed of from, the Premises by any person other than a Landlord Party (collectively, “Tenant HazMat Operations”) and released of all Hazardous Materials Clearances, broom clean, ordinary wear and tear and casualty loss and condemnation covered by Sections 18 and 19 excepted.  At least 3 months prior to the surrender of 

 

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the Premises, Tenant shall deliver to Landlord a narrative description of the actions proposed (or required by any Governmental Authority) to be taken by Tenant in order to surrender the Premises (including any Installations permitted by Landlord to remain in the Premises) at the expiration or earlier termination of the Term, free from any residual impact from the Tenant HazMat Operations and otherwise released for unrestricted use and occupancy (the “Surrender Plan”).  Such Surrender Plan shall be accompanied by a current listing of (i) all Hazardous Materials licenses and permits held by or on behalf of any Tenant Party with respect to the Premises, and (ii) all Hazardous Materials used, stored, handled, treated, generated, released or disposed of from the Premises, and shall be subject to the review and approval of Landlord’s environmental consultant.  In connection with the review and approval of the Surrender Plan, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant such additional non-proprietary information concerning Tenant HazMat Operations as Landlord shall request.  On or before such surrender, Tenant shall deliver to Landlord evidence that the approved Surrender Plan shall have been satisfactorily completed and Landlord shall have the right, subject to reimbursement at Tenant’s expense as set forth below, to cause Landlord’s environmental consultant to inspect the Premises and perform such additional procedures as may be deemed reasonably necessary to confirm that the Premises are, as of the effective date of such surrender or early termination of the Lease, free from any residual impact from Tenant HazMat Operations.  Tenant shall reimburse Landlord, as Additional Rent, for the actual out-of pocket expense incurred by Landlord for Landlord’s environmental consultant to review and approve the Surrender Plan and to visit the Premises and verify satisfactory completion of the same, which cost shall not exceed $5,000.  Landlord shall have the unrestricted right to deliver such Surrender Plan and any report by Landlord’s environmental consultant with respect to the surrender of the Premises to third parties.

 

If Tenant shall fail to prepare or submit a Surrender Plan approved by Landlord, or if Tenant shall fail to complete the approved Surrender Plan, or if such Surrender Plan, whether or not approved by Landlord, shall fail to adequately address any residual effect of Tenant HazMat Operations in, on or about the Premises, Landlord shall have the right to take such actions as Landlord may deem reasonable or appropriate to assure that the Premises and the Project are surrendered free from any residual impact from Tenant HazMat Operations, the cost of which actions shall be reimbursed by Tenant as Additional Rent, without regard to the limitation set forth in the first paragraph of this Section 28.

 

Tenant shall immediately return to Landlord all keys and/or access cards to parking, the Project, restrooms or all or any portion of the Premises furnished to or otherwise procured by Tenant.  If any such access card or key is lost, Tenant shall pay to Landlord, at Landlord’s election, either the cost of replacing such lost access card or key or the cost of reprogramming the access security system in which such access card was used or changing the lock or locks opened by such lost key.  Any Tenant’s Property, Alterations and property not so removed by Tenant as permitted or required herein shall be deemed abandoned and may be stored, removed, and disposed of by Landlord at Tenant’s expense, and Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and/or disposition of such property.  All obligations of Tenant hereunder not fully performed as of the termination of the Term, including the obligations of Tenant under Section 30 hereof, shall survive the expiration or earlier termination of the Term, including, without limitation, indemnity obligations, payment obligations with respect to Rent and obligations concerning the condition and repair of the Premises.

 

29.                               Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY LAW, TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

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30.                               Environmental Requirements.

 

(a)                                 Prohibition/Compliance/lndemnity.  Tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be brought upon, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises or the Project in violation of applicable Environmental Requirements (as hereinafter defined) by Tenant or any Tenant Party.  If Tenant breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials in the Premises during the Term or any holding over results in contamination of the Premises, the Project or any adjacent property or if contamination of the Premises, the Project or any adjacent property by Hazardous Materials brought into, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises by anyone other than Landlord and Landlord’s employees, agents and contractors otherwise occurs during the Term or any holding over, Tenant hereby indemnifies and shall defend and hold Landlord, its officers, directors, employees, agents and contractors harmless from any and all actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom), costs, claims, damages (including, without limitation, punitive damages and damages based upon diminution in value of the Premises or the Project, or the loss of, or restriction on, use of the Premises or any portion of the Project), expenses (including, without limitation, attorneys’, consultants’ and experts’ fees, court costs and amounts paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal injury, property damage, or contamination of, or adverse effects upon, the environment, water tables or natural resources), liabilities or losses (collectively, “Environmental Claims”) which arise during or after the Term as a result of such contamination.  This indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, treatment, remedial, removal, or restoration work required by any federal, state or local Governmental Authority because of Hazardous Materials present in the air, soil or ground water above, on, or under the Premises.  Without limiting the foregoing, if the presence of any Hazardous Materials on the Premises, the Project or any adjacent property caused or permitted by Tenant or any Tenant Party results in any contamination of the Premises, the Project or any adjacent property, Tenant shall promptly take all actions at its sole expense and in accordance with applicable Environmental Requirements as are necessary to return the Premises, the Project or any adjacent property to the condition existing prior to the time of such contamination, provided that Landlord’s approval of such action shall first be obtained, which approval shall not unreasonably be withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises or the Project.

 

(b)                                 Business.  Landlord acknowledges that it is not the intent of this Section 30 to prohibit Tenant from using the Premises for the Permitted Use.  Tenant may operate its business according to prudent industry practices so long as the use or presence of Hazardous Materials is strictly and properly monitored according to all then applicable Environmental Requirements.  As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business, Tenant agrees to deliver to Landlord prior to the Commencement Date a list identifying each type of Hazardous Materials to be brought upon, kept, used, stored, handled, treated, generated on, or released or disposed of from, the Premises and setting forth any and all governmental approvals or permits required in connection with the presence, use, storage, handling, treatment, generation, release or disposal of such Hazardous Materials on or from the Premises (“Hazardous Materials List”).  Tenant shall deliver to Landlord an updated Hazardous Materials List at least once a year and shall also deliver an updated list before any new Hazardous Material is brought onto, kept, used, stored, handled, treated, generated on, or released or disposed of from, the Premises.  Tenant shall deliver to Landlord true and correct copies of the following documents (the “Haz Mat Documents”) relating to the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials prior to the Commencement Date, or if unavailable at that 

 

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time, concurrent with the receipt from or submission to a Governmental Authority:  permits; approvals; reports and correspondence; storage and management plans, notice of violations of any Legal Requirements; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given Tenant its written consent to do so, which consent may be withheld in Landlord’s sole and absolute discretion); all closure plans or any other documents required by any and all federal, state and local Governmental Authorities for any storage tanks installed in, on or under the Project for the closure of any such tanks; and a Surrender Plan (to the extent surrender in accordance with Section 28 cannot be accomplished in 3 months).  Tenant is not required, however, to provide Landlord with any portion(s) of the Haz Mat Documents containing information of a proprietary nature which, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities.  It is not the intent of this Section to provide Landlord with information which could be detrimental to Tenant’s business should such information become possessed by Tenant’s competitors.  Notwithstanding anything to the contrary contained herein, Tenant has advised Landlord that the Hazardous Materials List attached to this Lease as Exhibit G reflects the type and quality of Hazardous Materials that Tenant will initially be using in the Premises and Landlord acknowledges and agrees that the Hazardous Materials List attached hereto as Exhibit G fulfills Tenant’s obligation to deliver a Hazardous Materials List pursuant to the second sentence of this paragraph.

 

(c)                                  Tenant Representation and Warranty.  Tenant hereby represents and warrants to Landlord that (i) neither Tenant nor any of its legal predecessors has been required by any prior landlord, lender or Governmental Authority at any time to take remedial action in connection with Hazardous Materials contaminating a property which contamination was permitted by Tenant of such predecessor or resulted from Tenant’s or such predecessor’s action or use of the property in question, and (ii) Tenant is not subject to any enforcement order issued by any Governmental Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority).  If Landlord determines that this representation and warranty was not true as of the date of this lease, Landlord shall have the right to terminate this Lease in Landlord’s sole and absolute discretion.

 

(d)                                 Testing.  Landlord shall have the right to conduct annual tests of the Premises to determine whether any contamination of the Premises or the Project has occurred as a result of Tenant’s use.  Tenant shall be required to pay the cost of such annual test of the Premises if there is violation of this Section 30 or if contamination for which Tenant is responsible under this Section 30 is identified; provided, however, that if Tenant conducts its own tests of the Premises using third party contractors and test procedures acceptable to Landlord which tests are certified to Landlord, Landlord shall accept such tests in lieu of the annual tests to be paid for by Tenant.  In addition, at any time, and from time to time, prior to the expiration or earlier termination of the Term, Landlord shall have the right to conduct appropriate tests of the Premises and the Project to determine if contamination has occurred as a result of Tenant’s use of the Premises.  In connection with such testing, upon the request of Landlord, Tenant shall deliver to Landlord or its consultant such non-proprietary information concerning the use of Hazardous Materials in or about the Premises by Tenant or any Tenant Party.  If contamination has occurred for which Tenant is liable under this Section 30, Tenant shall pay all costs to conduct such tests.  If no such contamination is found, Landlord shall pay the costs of such tests (which shall not constitute an Operating Expense).  Landlord shall provide Tenant with a copy of all third party, non-confidential reports and tests of the Premises made by or on behalf of Landlord during the Term without representation or warranty and subject to a confidentiality agreement.  Tenant shall, at its sole cost and expense, promptly and satisfactorily remediate any environmental conditions identified by such testing in accordance with all Environmental Requirements.  Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights which Landlord may have against Tenant.

 

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(e)                                  Control Areas.  Tenant shall be allowed to utilize up to its pro rata share of the Hazardous Materials inventory within any control area or zone (located within the Premises), as designated by the applicable building code, for chemical use or storage.  As used in the preceding sentence, Tenant’s pro rata share of any control areas or zones located within the Premises shall be determined based on the rentable square footage that Tenant leases within the applicable control area or zone.  For purposes of example only, if a control area or zone contains 10,000 rentable square feet and 2,000 rentable square feet of a tenant’s premises are located within such control area or zone (while such premises as a whole contains 5,000 rentable square feet), the applicable tenant’s pro rata share of such control area would be 20%.

 

(f)                                   Underground Tanks.  If underground or other storage tanks storing Hazardous Materials located on the Premises or the Project are used by Tenant or are hereafter placed on the Premises or the Project by Tenant, Tenant shall install, use, monitor, operate, maintain, upgrade and manage such storage tanks, maintain appropriate records, obtain and maintain appropriate insurance, implement reporting procedures, properly close any underground storage tanks, and take or cause to be taken all other actions necessary or required under applicable state and federal Legal Requirements, as such now exists or may hereafter be adopted or amended in connection with the installation, use, maintenance, management, operation, upgrading and closure of such storage tanks.

 

(g)                                  Tenant’s Obligations.  Tenant’s obligations under this Section 30 shall survive the expiration or earlier termination of the Lease.  During any period of time after the expiration or earlier termination of this Lease required by Tenant or Landlord to complete the removal from the Premises of any Hazardous Materials (including, without limitation, the release and termination of any licenses or permits restricting the use of the Premises and the completion of the approved Surrender Plan), Tenant shall continue to pay the full Rent in accordance with this Lease for any portion of the Premises not relet by Landlord in Landlord’s sole discretion, which Rent shall be prorated daily.

 

(h)                                 Definitions.  As used herein, the term “Environmental Requirements” means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any Governmental Authority regulating or relating to health, safety, or environmental conditions on, under, or about the Premises or the Project, or the environment, including without limitation, the following:  the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act; and all state and local counterparts thereto, and any regulations or policies promulgated or issued thereunder.  As used herein, the term “Hazardous Materials” means and includes any substance, material, waste, pollutant, or contaminant listed or defined as hazardous or toxic, or regulated by reason of its impact or potential impact on humans, animals and/or the environment under any Environmental Requirements, asbestos and petroleum, including crude oil or any fraction thereof, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas).  As defined in Environmental Requirements, Tenant is and shall be deemed to be the “operator” of Tenant’s “facility” and the “owner” of all Hazardous Materials brought on the Premises by Tenant or any Tenant Party, and the wastes, by-products, or residues generated, resulting, or produced therefrom.

 

31.                               Tenant’s Remedies/Limitation of Liability.  Landlord shall not be in default hereunder unless Landlord fails to perform any of its obligations hereunder within 30 days after written notice from Tenant specifying such failure (unless such performance will, due to the nature of the obligation, require a period of time in excess of 30 days, then after such period of time as is reasonably necessary).  Upon any default by Landlord, Tenant shall give notice by registered or certified mail to any Holder of a Mortgage covering the Premises and to any landlord of any lease of property in or on which the Premises are located and Tenant shall offer such Holder and/or landlord a reasonable opportunity to cure the default, including time to obtain possession of the Project by power of sale or a judicial action if such should 

 

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prove necessary to effect a cure; provided Landlord shall have furnished to Tenant in writing the names and addresses of all such persons who are to receive such notices.  All obligations of Landlord hereunder shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate this Lease for breach of Landlord’s obligations hereunder.

 

All obligations of Landlord under this Lease will be binding upon Landlord only during the period of its ownership of the Premises and not thereafter.  The term “Landlord” in this Lease shall mean only the owner for the time being of the Premises.  Upon the transfer by such owner of its interest in the Premises, such owner shall thereupon be released and discharged from all obligations of Landlord thereafter accruing, but such obligations shall be binding during the Term upon each new owner for the duration of such owner’s ownership.

 

32.                               Inspection and Access.  Landlord and its agents, representatives, and contractors may enter the Premises at any reasonable time to inspect the Premises and to make such repairs as may be required or permitted pursuant to this Lease and for any other business purpose.  Landlord and Landlord’s representatives may enter the Premises during business hours on not less than 48 hours advance written notice (except in the case of emergencies in which case no such notice shall be required and such entry may be at any time) for the purpose of effecting any such repairs, inspecting the Premises, showing the Premises to prospective purchasers and, during the last year of the Term, to prospective tenants or for any other business purpose.  Landlord may erect a suitable sign on the Premises stating the Premises are available to let or that the Project is available for sale.  Landlord may grant easements, make public dedications, designate Common Areas and create restrictions on or about the Premises, provided that no such easement, dedication, designation or restriction materially, adversely affects Tenant’s use or occupancy of the Premises for the Permitted Use.  At Landlord’s request, Tenant shall execute such instruments as may be necessary for such easements, dedications or restrictions.  Tenant shall at all times, except in the case of emergencies, have the right to escort Landlord or its agents, representatives, contractors or guests while the same are in the Premises, provided such escort does not materially and adversely affect Landlord’s access rights hereunder.

 

33.                               Security.  Tenant acknowledges and agrees that security devices and services, if any, while intended to deter crime may not in given instances prevent theft or other criminal acts and that Landlord is not providing any security services with respect to the Premises.  Tenant agrees that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Premises or any other breach of security with respect to the Premises.  Tenant shall be solely responsible for the personal safety of Tenant’s officers, employees, agents, contractors, guests and invitees while any such person is in, on or about the Premises and/or the Project.  Tenant shall at Tenant’s cost obtain insurance coverage to the extent Tenant desires protection against such criminal acts.

 

34.                               Force Majeure.  Landlord shall not be responsible or liable for delays in the performance of its obligations hereunder when caused by, related to, or arising out of acts of God, sinkholes or subsidence, strikes, lockouts, or other labor disputes, embargoes, quarantines, weather, national, regional, or local disasters, calamities, or catastrophes, inability to obtain labor or materials (or reasonable substitutes therefor) at reasonable costs or failure of, or inability to obtain, utilities necessary for performance, governmental restrictions, orders, limitations, regulations, or controls, national emergencies, delay in issuance or revocation of permits, enemy or hostile governmental action, terrorism, insurrection, riots, civil disturbance or commotion, fire or other casualty, and other causes or events beyond the reasonable control of Landlord (“Force Majeure”).

 

35.                               Brokers.  Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with this transaction and that no 

 

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Broker brought about this transaction, other than Cushman & Wakefield and NAI Hunneman Commercial.  Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker, other than the broker, if any named in this Section 35, claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.  Landlord shall be responsible for all commissions due to Cushman & Wakefield and NAI Hunneman Commercial arising out of the execution of this Lease in accordance with the terms of a separate written agreements between Cushman & Wakefield and NAI Hunneman Commercial and Landlord.  Tenant shall not be required to pay any commissions to Cushman & Wakefield and NAI Hunneman Commercial in connection with this Lease.

 

36.                               Limitation on Landlord’s Liability.  NOTWITHSTANDING ANYTHING SET FORTH HEREIN OR IN ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT TO THE CONTRARY:  (A) LANDLORD SHALL NOT BE LIABLE TO TENANT OR ANY OTHER PERSON FOR (AND TENANT AND EACH SUCH OTHER PERSON ASSUME ALL RISK OF) LOSS, DAMAGE OR INJURY, WHETHER ACTUAL OR CONSEQUENTIAL TO:  TENANT’S PERSONAL PROPERTY OF EVERY KIND AND DESCRIPTION, INCLUDING, WITHOUT LIMITATION TRADE FIXTURES, EQUIPMENT, INVENTORY, SCIENTIFIC RESEARCH, SCIENTIFIC EXPERIMENTS, LABORATORY ANIMALS, PRODUCT, SPECIMENS, SAMPLES, AND/OR SCIENTIFIC, BUSINESS, ACCOUNTING AND OTHER RECORDS OF EVERY KIND AND DESCRIPTION KEPT AT THE PREMISES AND ANY AND ALL INCOME DERIVED OR DERIVABLE THEREFROM; (B) THERE SHALL BE NO PERSONAL RECOURSE TO LANDLORD FOR ANY ACT OR OCCURRENCE IN, ON OR ABOUT THE PREMISES OR ARISING IN ANY WAY UNDER THIS LEASE OR ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT WITH RESPECT TO THE SUBJECT MATTER HEREOF AND ANY LIABILITY OF LANDLORD HEREUNDER SHALL BE STRICTLY LIMITED SOLELY TO LANDLORD’S INTEREST IN THE PROJECT OR ANY PROCEEDS FROM SALE OR CONDEMNATION THEREOF AND ANY INSURANCE PROCEEDS PAYABLE IN RESPECT OF LANDLORD’S INTEREST IN THE PROJECT OR IN CONNECTION WITH ANY SUCH LOSS; AND (C) IN NO EVENT SHALL ANY PERSONAL LIABILITY BE ASSERTED AGAINST LANDLORD IN CONNECTION WITH THIS LEASE NOR SHALL ANY RECOURSE BE HAD TO ANY OTHER PROPERTY OR ASSETS OF LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS.  UNDER NO CIRCUMSTANCES SHALL LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS BE LIABLE FOR INJURY TO TENANT’S BUSINESS OR FOR ANY LOSS OF INCOME OR PROFIT THEREFROM.

 

37.                               Severability.  If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby.  It is also the intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is illegal, invalid or unenforceable, there be added, as a part of this Lease, a clause or provision as similar in effect to such illegal, invalid or unenforceable clause or provision as shall be legal, valid and enforceable.

 

38.                               Signs; Exterior Appearance.  Tenant shall not, without the prior written consent of Landlord, which may be granted or withheld in Landlord’s sole discretion:  (i) attach any awnings, exterior lights, decorations, balloons, flags, pennants, banners, painting or other projection to any outside wall of the Project, (ii) use any curtains, blinds, shades or screens other than Landlord’s standard window coverings, (iii) coat or otherwise sunscreen the interior or exterior of any windows, (iv) place any bottles, parcels, or other articles on the window sills, (v) place any equipment, furniture or other items of personal property on any exterior balcony, or (vi) paint, affix or exhibit on any part of the Premises or the Project 

 

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any signs, notices, window or door lettering, placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises.  Signage on the second floor and the lobby directory tablet shall be inscribed, painted or affixed for Tenant by Landlord at Tenant’s cost, and shall be of a size, color and type acceptable to Landlord.  Nothing may be placed on the exterior of corridor walls or corridor doors other than Landlord’s standard lettering.  The lobby directory tablet shall be provided exclusively for the display of the name and location of tenants.

 

39.                               Right to Expand.

 

(a)                                 Expansion in the Building.  Tenant shall, during the Base Term, have the one-time right, but not the obligation, to expand the Premises (the “Expansion Right”) to include any Available Space in the Building upon the terms and conditions set forth in this Section.  For purposes of this Section 39(a), “Available Space” shall mean the balance of the rentable square footage in the Building not already included as part of the Premises, which is not occupied by a tenant or which is occupied by an existing tenant whose lease is expiring within 6 months or less and such tenant does not wish to renew (whether or not such tenant has a right to renew) its occupancy of such space.  If there is any Available Space in the Building, Landlord shall, at such time as Landlord shall elect so long as Tenant’s rights hereunder are preserved, deliver to Tenant written notice (the “Expansion Notice”) of such Available Space, together with the terms and conditions on which Landlord is prepared to lease Tenant such Available Space; provided that Base Rent shall be at the Market Rate (as defined in Section 40(a) below) for such Available Space.  Tenant shall be entitled to exercise its right under this Section 39(a) only with respect to the entire Available Space described in such Expansion Notice (“Identified Available Space”).  Tenant shall have 5 business days following delivery of the Expansion Notice to deliver to Landlord written notification of Tenant’s exercise of the Expansion Right with respect to the Identified Available Space (“Exercise Notice”).  Tenant shall be entitled to lease such Identified Available Space upon the terms and conditions set forth in the Expansion Notice.  If Landlord and Tenant are unable to agree on the Market Rate for the Available Space after negotiating in good faith within 5 days after Tenant’s delivery of an Exercise Notice, the applicable Market Rate will be determined through arbitration in accordance with Section 40(b).  Tenant acknowledges and agrees that, if Tenant has delivered an Exercise Notice pursuant to this Section 39(a), Tenant shall have no right thereafter to rescind or elect not to lease the Available Space.  Tenant acknowledges that the Term of the Lease with respect to the Identified Available Space may not be co-terminous with the Term of the Lease with respect to the original Premises.  Notwithstanding anything to the contrary contained herein, Tenant shall have no right to exercise the Expansion Right and the provisions of this Section 39(a) shall no longer apply after the date that is 9 months prior to the expiration of the Base Term if Tenant has not exercised its Extension Right pursuant to Section 40.  If Tenant fails to deliver an Exercise Notice to Landlord for the Identified Available Space within the required 5 business day period, Tenant shall be deemed to have forever waived its rights under this Section 39(a) to lease the Identified Available Space, and Landlord shall have the right to lease the Identified Available Space to any third party on any terms and conditions acceptable to Landlord. 

 

(b)                                 Amended Lease.  If:  (i) Tenant fails to timely deliver an Exercise Notice, or (ii) after the expiration of a period of 10 days from the date Tenant gives notice accepting Landlord’s offer to lease such Identified Available Space, no lease amendment or lease agreement for the Identified Available Space has been executed, and Landlord tenders to Tenant an amendment to this Lease setting forth the terms for the rental of the Identified Available Space consistent with those set forth in the Expansion Notice and otherwise consistent with the terms of this Lease and Tenant fails to execute such Lease amendment within 10 business days following such tender, Tenant shall be deemed to have forever waived its right to lease such Identified Available Space.

 

(c)                                  Exceptions.  Notwithstanding the above, the Expansion Right shall, at Landlord’s option, not be in effect and may not be exercised by Tenant:

 

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(i)                                     during any period of time that Tenant is in Default under any provision of the Lease; or

 

(ii)                                  if Tenant has been in Default under any provision of the Lease 3 or more times, whether or not the Defaults are cured, during the 12 month period prior to the date on which Tenant seeks to exercise the Expansion Right.

 

(d)                                 Termination.  The Expansion Right shall, at Landlord’s option, terminate and be of no further force or effect even after Tenant’s due and timely exercise of the Expansion Right, if, after such exercise, but prior to the commencement date of the lease of such Identified Available Space, (i) Tenant fails to timely cure any default by Tenant under the Lease; or (ii) Tenant has Defaulted 3 or more times during the period from the date of the exercise of the Expansion Right to the date of the commencement of the lease of the Identified Available Space, whether or not such Defaults are cured.

 

(e)                                  Rights Personal.  The Expansion Right is personal to Tenant and are not assignable without Landlord’s consent, which may be granted or withheld in Landlord’s sole discretion separate and apart from any consent by Landlord to an assignment of Tenant’s interest in the Lease.

 

(f)                                   No Extensions.  The period of time within which the Expansion Right may be exercised shall not be extended or enlarged by reason of Tenant’s inability to exercise the Expansion Right.

 

40.                               Right to Extend Term.  Tenant shall have the right to extend the Term of the Lease upon the following terms and conditions:

 

(a)                                 Extension Rights.  Tenant shall have 1 right (an “Extension Right”) to extend the term of this Lease for 2 years (an “Extension Term”) on the same terms and conditions as this Lease (other than with respect to Base Rent and the Work Letter) by giving Landlord written notice of its election to exercise the Extension Right at least 9 months prior to the expiration of the Base Term of the Lease.

 

Upon the commencement of the Extension Term, Base Rent for the first year of the Extension Term shall be payable at the Market Rate (as defined below).  Base Rent shall thereafter be adjusted on each annual anniversary of the commencement of the Extension Term by a percentage as determined by Landlord and agreed to by Tenant at the time the Market Rate is determined.  As used herein, “Market Rate” shall mean shall mean the then market rental rate, as determined by Landlord and agreed to by Tenant, for laboratory space in the Waltham market of comparable size, quality, and location as the Premises, taking into account all relevant factors.

 

If, on or before the date which is 180 days prior to the expiration of the Base Term of this Lease, Tenant has not agreed with Landlord’s determination of the Market Rate and the rent escalations during the Extension Term after negotiating in good faith, Tenant shall be deemed to have elected arbitration as described in Section 40(b).  Tenant acknowledges and agrees that, if Tenant has elected to exercise the Extension Right by delivering notice to Landlord as required in this Section 40(a).  Tenant shall have no right thereafter to rescind or elect not to extend the term of the Lease for the Extension Term.

 

(b)                                 Arbitration.

 

(i)                                     Within 10 days of Tenant’s notice to Landlord of its election (or deemed election) to arbitrate Market Rate and escalations, each party shall deliver to the other a proposal containing the Market Rate and escalations that the submitting party believes to be correct (“Extension Proposal”).  If either party fails to timely submit an Extension Proposal, the other party’s submitted proposal shall determine the Base Rent and escalations for the Extension Term.  

 

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If both parties submit Extension Proposals, then Landlord and Tenant shall meet within 7 days after delivery of the last Extension Proposal and make a good faith attempt to mutually appoint a single Arbitrator (and defined below) to determine the Market Rate and escalations.  If Landlord and Tenant are unable to agree upon a single Arbitrator, then each shall, by written notice delivered to the other within 10 days after the meeting, select an Arbitrator.  If either party fails to timely give notice of its selection for an Arbitrator, the other party’s submitted proposal shall determine the Base Rent for the Extension Term.  The 2 Arbitrators so appointed shall, within 5 business days after their appointment, appoint a third Arbitrator.  If the 2 Arbitrators so selected cannot agree on the selection of the third Arbitrator within the time above specified, then either party, on behalf of both parties, may request such appointment of such third Arbitrator by application to any state court of general jurisdiction in the jurisdiction in which the Premises are located, upon 10 days prior written notice to the other party of such intent.

 

(ii)                                  The decision of the Arbitrator(s) shall be made within 30 days after the appointment of a single Arbitrator or the third Arbitrator, as applicable.  The decision of the single Arbitrator shall be final and binding upon the parties.  The average of the two closest Arbitrators in a three Arbitrator panel shall be final and binding upon the parties.  Each party shall pay the fees and expenses of the Arbitrator appointed by or on behalf of such party and the fees and expenses of the third Arbitrator shall be borne equally by both parties.  If the Market Rate and escalations are not determined by the first day of the Extension Term, then Tenant shall pay Landlord Base Rent in an amount equal to the Base Rent in effect immediately prior to the Extension Term and increased by 3% until such determination is made.  After the determination of the Market Rate and escalations, the parties shall make any necessary adjustments to such payments made by Tenant.  Landlord and Tenant shall then execute an amendment recognizing the Market Rate and escalations for the Extension Term.

 

(iii)                               An “Arbitrator” shall be any person appointed by or on behalf of either party or appointed pursuant to the provisions hereof and:  (i) shall be (A) a member of the American Institute of Real Estate Appraisers with not less than 10 years of experience in the appraisal of improved office and high tech industrial real estate in the greater Waltham metropolitan area, or (B) a licensed commercial real estate broker with not less than 15 years experience representing landlords and/or tenants in the leasing of high tech or life sciences space in the greater Waltham metropolitan area, (ii) devoting substantially all of their time to professional appraisal or brokerage work, as applicable, at the time of appointment and (iii) be in all respects impartial and disinterested.

 

(c)                                  Rights Personal.  The Extension Right is personal to Tenant and is not assignable without Landlord’s consent, which may be granted or withheld in Landlord’s sole discretion separate and apart from any consent by Landlord to an assignment of Tenant’s interest in the Lease.

 

(d)                                 Exceptions.  Notwithstanding anything set forth above to the contrary, the Extension Right shall, at Landlord’s option, not be in effect and Tenant may not exercise the Extension Right:

 

(i)                                     during any period of time that Tenant is in Default under any provision of this Lease; or

 

(ii)                                  if Tenant has been in Default under any provision of this Lease 3 or more times, whether or not the Defaults are cured, during the 12 month period immediately prior to the date that Tenant intends to exercise the Extension Right, whether or not the Defaults are cured.

 

32

 

(e)                                  No Extensions.  The period of time within which the Extension Right may be exercised shall not be extended or enlarged by reason of Tenant’s inability to exercise the Extension Right.

 

(f)                                   Termination.  The Extension Right shall, at Landlord’s option, terminate and be of no further force or effect even after Tenant’s due and timely exercise of the Extension Right, if, after such exercise, but prior to the commencement date of the Extension Term, (i) Tenant fails to timely cure any default by Tenant under this Lease; or (ii) Tenant has Defaulted 3 or more times during the period from the date of the exercise of the Extension Right to the date of the commencement of the Extension Term, whether or not such Defaults are cured.

 

41.                               Miscellaneous.

 

(a)                                 Notices.  All notices or other communications between the parties shall be in writing and shall be deemed duly given upon delivery or refusal to accept delivery by the addressee thereof if delivered in person, or upon actual receipt if delivered by reputable overnight guaranty courier, addressed and sent to the parties at their addresses set forth above.  Landlord and Tenant may from time to time by written notice to the other designate another address for receipt of future notices.

 

(b)                                 Joint and Several Liability.  If and when included within the term “Tenant,” as used in this instrument, there is more than one person or entity, each shall be jointly and severally liable for the obligations of Tenant.

 

(c)                                  Financial Information.  Tenant shall furnish Landlord with true and complete copies of (i) Tenant’s most recent audited annual financial statements within 90 days of the end of each of Tenant’s fiscal years during the Term, (ii) Tenant’s most recent unaudited quarterly financial statements within 45 days of the end of each of Tenant’s first three fiscal quarters of each of Tenant’s fiscal years during the Term, (iii) at Landlord’s request from time to time, updated business plans, including cash flow projections and/or pro forma balance sheets and income statements, all of which shall be treated by Landlord as confidential information belonging to Tenant, (iv) corporate brochures and/or profiles prepared by Tenant for prospective investors, and (v) any other financial information or summaries that Tenant typically provides to its lenders or shareholders.  Notwithstanding the foregoing, in no event shall Tenant be required to provide any financial information to Landlord which Tenant does not otherwise prepare (or cause to be prepared) for its own purposes.  So long as Tenant is a “public company” and its financial information is publicly available, then the foregoing delivery requirements of this Section 41(c) shall not apply.  Landlord shall treat Tenant’s financial information as confidential information belonging to Tenant.  Landlord may, however, disclose Tenant’s financial information to Landlord’s auditors, attorneys, consultants, lenders and prospective purchasers; provided, however, that Landlord advises such parties of the confidentiality of such information.

 

(d)                                 Recordation.  Neither this Lease nor a memorandum of lease shall be filed by or on behalf of Tenant in any public record.  Landlord may prepare and file, and upon request by Landlord Tenant will execute, a memorandum of lease.

 

(e)                                  Interpretation.  The normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Lease or any exhibits or amendments hereto.  Words of any gender used in this Lease shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires.  The captions inserted in this Lease are for convenience only and in no way define, limit or otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect the interpretation of this Lease.

 

33

 

(f)                                   Not Binding Until Executed.  The submission by Landlord to Tenant of this Lease shall have no binding force or effect, shall not constitute an option for the leasing of the Premises, nor confer any right or impose any obligations upon either party until execution of this Lease by both parties.

 

(g)                                  Limitations on Interest.  It is expressly the intent of Landlord and Tenant at all times to comply with applicable law governing the maximum rate or amount of any interest payable on or in connection with this Lease.  If applicable law is ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord’s and Tenant’s express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder.

 

(h)                                 Choice of Law.  Construction and interpretation of this Lease shall be governed by the internal laws of the state in which the Premises are located, excluding any principles of conflicts of laws.

 

(i)                                     Time.  Time is of the essence as to the performance of Tenant’s obligations under this Lease.

 

(j)                                    OFAC.  Tenant, and all beneficial owners of Tenant, are currently (a) in compliance with and shall at all times during the Term of this Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of this Lease be listed on, the Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

 

(k)                                 Incorporation by Reference.  All exhibits and addenda attached hereto are hereby incorporated into this Lease and made a part hereof.  If there is any conflict between such exhibits or addenda and the terms of this Lease, such exhibits or addenda shall control.

 

(l)                                     Entire Agreement.  This Lease, including the exhibits attached hereto, constitutes the entire agreement between Landlord and Tenant pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, letters of intent, negotiations and discussions, whether oral or written, of the parties, and there are no warranties, representations or other agreements, express or implied, made to either party by the other party in connection with the subject matter hereof except as specifically set forth herein.

 

(m)                             No Accord and Satisfaction.  No payment by Tenant or receipt by Landlord of a lesser amount than the monthly installment of Base Rent or any Additional Rent will be other than on account of the earliest stipulated Base Rent and Additional Rent, nor will any endorsement or statement on any check or letter accompanying a check for payment of any Base Rent or Additional Rent be an accord and satisfaction.  Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue any other remedy provided in this Lease.

 

(n)                                 Hazardous Activities.  Notwithstanding any other provision of this Lease, Landlord, for itself and its employees, agents and contractors, reserves the right to refuse to perform any repairs or 

 

34

 

services in any portion of the Premises which, pursuant to Tenant’s routine safety guidelines, practices or custom or prudent industry practices, require any form of protective clothing or equipment other than safety glasses.  In any such case, Tenant shall contract with parties who are acceptable to Landlord, in Landlord’s reasonable discretion, for all such repairs and services, and Landlord shall, to the extent required, equitably adjust Tenant’s Share of Operating Expenses in respect of such repairs or services to reflect that Landlord is not providing such repairs or services to Tenant.

 

[ Signatures on next page ]

 

35

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above written.

 

	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KALA PHARMACEUTICALS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Guillaume Pfefer
    
	
 
    	
Its:
    	
President   and CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
ARE-MA   REGION NO. 9, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
ARE-MA   REGION NO. 9MM, LLC, a Delaware limited liability company, manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ALEXANDRIA   REAL ESTATE EQUITIES, L.P., a Delaware limited partnership, its member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
ARE-QRS   CORP., a Maryland corporation, general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Eric S. Johnson
    
	
 
    	
 
    	
 
    	
 
    	
Eric   S. Johnson
    
	
 
    	
 
    	
 
    	
Its:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    	
Real   Estate Legal Affairs
    

 

36

 

EXHIBIT A TO LEASE

 

DESCRIPTION OF PREMISES

 

 

1

 

EXHIBIT B TO LEASE

 

DESCRIPTION OF PROJECT

 

The land with the buildings and improvements thereon known as and numbered 100 Beaver Street, Waltham, Middlesex County, Massachusetts more fully bounded and described as follows:

 

A certain parcel of land with buildings thereon situated on Beaver Street in the City of Waltham, Middlesex County, Massachusetts, being shown as Lot 2 on a plan entitled, “Subdivision Plan of Land, Waltham, Mass.”, dated March 28, 1985, R.E. Cameron & Associates, Inc., C.E.’s, recorded in Middlesex South Registry of Deeds, Book 16248, Page 282, bounded and described as follows:

 

	
SOUTHERLY
    	
by   the centerline of a way shown on said plan as “Parsons Avenue, 40ft. wide –   Unimproved”, 673.53 ft.;
    
	
 
    	
 
    
	
WESTERLY
    	
by   Lot 1, as shown on said plan, 220.28 ft.;
    
	
 
    	
 
    
	
NORTHERLY
    	
by   a 30 ft. wide right of way, as shown on said plan 663.20 ft.;
    
	
 
    	
 
    
	
EASTERLY
    	
by   Beaver Street, as shown on said plan 169.22 ft.;
    
	
 
    	
 
    
	
SOUTHEASTERLY
    	
by   land of owners unknown 176.43 ft. as shown on said plan.
    

 

1

 

EXHIBIT C TO LEASE

 

WORK LETTER

 

THIS WORK LETTER dated September 30, 2013 (this “Work Letter”) is made and entered into by and between ARE-MA REGION NO. 9, LLC, a Delaware limited liability company (“Landlord”), and KALA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”), and is attached to and made a part of the Lease Agreement dated September 30, 2013 (the “Lease”), by and between Landlord and Tenant.  Any initially capitalized terms used but not defined herein shall have the meanings given them in the Lease.

 

1.                                      General Requirements.

 

(a)                                 Tenant’s Authorized Representative.  Tenant designates Kathy Rizzo and Guillaume Pfefer (either such individual acting alone, “Tenant’s Representative”) as the only persons authorized to act for Tenant pursuant to this Work Letter.  Landlord shall not be obligated to respond to or act upon any request, approval, inquiry or other communication (collectively, “Communication”) from or on behalf of Tenant in connection with this Work Letter unless such Communication is in writing from Tenant’s Representative.  Tenant may change either Tenant’s Representative at any time upon not less than 5 business days advance written notice to Landlord.  Neither Tenant nor Tenant’s Representative shall be authorized to direct Landlord’s contractors in the performance of Landlord’s Work (as hereinafter defined).

 

(b)                                 Landlord’s Authorized Representative.  Landlord designates Tim White and Dawn Leaman (either such individual acting alone, “Landlord’s Representative”) as the only persons authorized to act for Landlord pursuant to this Work Letter.  Tenant shall not be obligated to respond to or act upon any Communication from or on behalf of Landlord in connection with this Work Letter unless such Communication is in writing from Landlord’s Representative.  Landlord may change either Landlord’s Representative at any time upon not less than 5 business days advance written notice to Tenant.  Landlord’s Representative shall be the sole persons authorized to direct Landlord’s contractors in the performance of Landlord’s Work.

 

(c)                                  Architects, Consultants and Contractors.  Landlord and Tenant hereby acknowledge and agree that: (i) TRG Builders shall be the general contractor for the Tenant Improvements, (ii) any subcontractors for the Tenant Improvements shall be selected by Landlord, subject to Tenant’s approval, which approval shall not be unreasonably withheld, conditioned or delayed, and (iii) ArchDesign shall be the architect (the “TI Architect”) for the Tenant Improvements.

 

2.                                      Tenant Improvements.

 

(a)                                 Tenant Improvements Defined.  As used herein, “Tenant Improvements” shall mean all improvements to the Project of a fixed and permanent nature as shown on the TI Construction Drawings, as defined in Section 2(c) below.  Other than Landlord’s Work (as defined in Section 3(a) below, Landlord shall not have any obligation whatsoever with respect to the finishing of the Premises for Tenant’s use and occupancy.

 

(b)                                 Tenant’s Space Plans.  Landlord and Tenant acknowledge and agree that the plan prepared by the TI Architect attached hereto as Schedule 1 (the “Space Plan”) has been approved by both Landlord and Tenant.

 

 

(c)                                  Working Drawings.  Landlord shall cause the TI Architect to prepare and deliver to Tenant for review and comment construction plans, specifications and drawings for the Tenant Improvements (“TI Construction Drawings”), which TI Construction Drawings shall be prepared substantially in accordance with the Space Plan.  Tenant shall be solely responsible for ensuring that the TI Construction Drawings reflect Tenant’s requirements for the Tenant Improvements.  Tenant shall deliver its written comments on the TI Construction Drawings to Landlord not later than 10 business days after Tenant’s receipt of the same; provided, however, that Tenant may not disapprove any matter that is consistent with the Space Plan without submitting a Change Request.  Landlord and the TI Architect shall consider all such comments in good faith and shall, within 10 business days after receipt, notify Tenant how Landlord proposes to respond to such comments, but Tenant’s review rights pursuant to the foregoing sentence shall not delay the design or construction schedule for the Tenant Improvements.  Any disputes in connection with such comments shall be resolved in accordance with Section 2(d) hereof.  Provided that the design reflected in the TI Construction Drawings is consistent with the Space Plan, Tenant shall approve the TI Construction Drawings submitted by Landlord, unless Tenant submits a Change Request.  Once approved by Tenant, subject to the provisions of Section 4 below, Landlord shall not materially modify the TI Construction Drawings except as may be reasonably required in connection with the issuance of the TI Permit (as defined in Section 3(b) below).

 

(d)                                 Approval and Completion.  It is hereby acknowledged by Landlord and Tenant that the TI Construction Drawings must be completed and approved not later than October 15, 2013, in order for the Landlord’s Work to be Substantially Complete by the Target Commencement Date (as defined in the Lease).  Upon any dispute regarding the design of the Tenant Improvements, which is not settled within 10 business days after notice of such dispute is delivered by one party to the other, Tenant may make the final decision regarding the design of the Tenant Improvements, provided (i) Tenant acts reasonably and such final decision is either consistent with or a compromise between Landlord’s and Tenant’s positions with respect to such dispute, (ii) that all costs and expenses resulting from any such decision by Tenant shall be payable by Tenant, and (iii) Tenant’s decision will not affect the base Building, structural components of the Building or any Building systems.  Any changes to the TI Construction Drawings following Landlord’s and Tenant’s approval of same requested by Tenant shall be processed as provided in Section 4 hereof.

 

3.                                      Performance of Landlord’s Work.

 

(a)                                 Definition of Landlord’s Work.  As used herein, “Landlord’s Work” shall mean the work of constructing and completing the Tenant Improvements.

 

(b)                                 Commencement and Permitting.  Landlord shall commence construction of the Tenant Improvements upon obtaining a building permit (the “TI Permit”) authorizing the construction of the Tenant Improvements consistent with the TI Construction Drawings approved by Tenant.  The cost of obtaining the TI Permit shall be payable by Landlord.  Tenant shall assist Landlord in obtaining the TI Permit.  If any Governmental Authority having jurisdiction over Landlord’s Work or any portion thereof shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with Landlord’s obligations hereunder, (ii) increase the cost of constructing Landlord’s Work, or (iii) will materially delay the construction of Landlord’s Work, Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such terms and conditions provided; however, that such terms and conditions do not constitute material changes to the TI Construction Drawings and that the cost of such terms and conditions shall be the responsibility of Landlord.

 

 

(c)                                  Completion of Landlord’s Work.  Landlord shall substantially complete or cause to be substantially completed Landlord’s Work in a good and workmanlike manner, in accordance with the TI Permit subject, in each case, to Minor Variations and normal “punch list” items of a non-material nature that do not interfere with the use of the Premises and shall obtain a certificate or temporary certificate of occupancy (or an equivalent approval) for the Premises permitting lawful occupancy of the Premises during the Term (but specifically excluding any permits, licenses or other governmental approvals required to be obtained in connection with Tenant’s operations in the Premises not relating to Landlord’s Work)(“Substantial Completion” or “Substantially Complete”).  Upon Substantial Completion of Landlord’s Work, Landlord shall require the TI Architect and the general contractor to execute and deliver, for the benefit of Tenant and Landlord, a Certificate of Substantial Completion in the form of the American Institute of Architects (“AIA”) document G704.  For purposes of this Work Letter, “Minor Variations” shall mean any modifications reasonably required: (i) to comply with all applicable Legal Requirements and/or to obtain or to comply with any required permit (including the TI Permit); (ii) to comply with any request by Tenant for modifications to Landlord’s Work; (iii) to comport with good design, engineering, and construction practices that are not material; or (iv) to make reasonable adjustments in accordance with good design, engineering, and construction practices for field deviations or conditions encountered during the construction of Landlord’s Work.

 

(d)                                 Selection of Materials.  Where more than one type of material or structure is indicated on the TI Construction Drawings approved by Landlord and Tenant, the option will be selected at Landlord’s sole and absolute subjective discretion, provided that such material or structure shall be consistent with existing Building standard materials and/or structures, as applicable.  As to all building materials and equipment that Landlord is obligated to supply under this Work Letter, Landlord shall select the manufacturer thereof in its sole and absolute subjective discretion.

 

(e)                                  Delivery of the Premises.  When Landlord’s Work is Substantially Complete, subject to the remaining terms and provisions of this Section 3(e), Tenant shall accept the Premises.  Tenant’s taking possession and acceptance of the Premises shall not constitute a waiver of: (i) any warranty with respect to workmanship (including installation of equipment) or material (exclusive of equipment provided directly by manufacturers), (ii) any non-compliance of Landlord’s Work with applicable Legal Requirements, or (iii) any claim that Landlord’s Work was not completed substantially in accordance with the TI Construction Drawings (subject to Minor Variations and such other changes as are permitted hereunder) (collectively, a “Construction Defect”).  Tenant shall have one year after Substantial Completion within which to notify Landlord of any such Construction Defect discovered by Tenant, and Landlord shall use reasonable efforts to remedy or cause the responsible contractor to remedy any such Construction Defect within 30 days thereafter.  Notwithstanding the foregoing, Landlord shall not be in default under the Lease if the applicable contractor, despite Landlord’s reasonable efforts, fails to remedy such Construction Defect within such 30-day period, in which case Landlord shall continue to use reasonable efforts to remedy such Construction Defect .

 

Tenant shall be entitled to receive the benefit of all construction warranties and manufacturer’s equipment warranties relating to equipment installed in the Premises.  If requested by Tenant, Landlord shall attempt to obtain extended warranties from manufacturers and suppliers of such equipment, but the cost of any such extended warranties shall be borne solely by Tenant.  Landlord shall promptly undertake and complete, or cause to be completed, all punch list items.

 

(f)                                   Commencement Date Delay.  Except as otherwise provided in the Lease, Delivery of the Premises shall occur when Landlord’s Work has been Substantially Completed, except to the extent

 

 

that completion of Landlord’s Work shall have been actually delayed by any one or more of the following causes in which case the Target Commencement Date shall be extended (“Tenant Delay”):

 

(i)                                     Tenant’s Representative was not available within 2 business days to give or receive any Communication or to take any other action required to be taken by Tenant hereunder;

 

(ii)                                  Tenant’s request for Change Requests (as defined in Section 4(a) below) to the extent that they actually result in a delay of Landlord’s Work, whether or not any such Change Requests are actually performed;

 

(iii)                               Construction of any Change Requests;

 

(iv)                              Tenant’s request for materials, finishes or installations requiring unusually long lead times to the extent they actually result in a delay of Landlord’s Work, provided that promptly after Landlord learns of such long lead time items, Landlord informs Tenant that the requested items will require unusually long lead times;

 

(v)                                 Tenant’s delay in reviewing, revising or approving plans and specifications beyond the periods set forth herein;

 

(vi)                              Tenant’s delay in providing information critical to the normal progression of the Project.  Tenant shall provide such information as soon as reasonably possible, but in no event longer than one week after receipt of any request for such information from Landlord;

 

(vii)                           Tenant’s delay in making payments to Landlord for Excess TI Costs (as defined in Section 5(b) below); or

 

(viii)                        Any other act or omission by Tenant or any Tenant Party (as defined in the Lease), or persons employed by any of such persons that continues for more than 2 days after Landlord’s notice thereof to Tenant.

 

If Delivery is delayed for any of the foregoing reasons, then Landlord shall cause the TI Architect to certify the date on which the Tenant Improvements would have been Substantially Completed but for such Tenant Delay and such certified date shall be the date of Delivery.

 

4.                                      Changes.  Any changes requested by Tenant to the Space Plan attached to this Work Letter or after the delivery and approval by Landlord and Tenant of the TI Construction Drawings, any changes by Tenant to the TI Construction Drawings, shall be requested and instituted in accordance with the provisions of this Section 4 and shall be subject to the written approval of Landlord and the TI Architect, such approval not to be unreasonably withheld, conditioned or delayed.

 

(a)                                 Tenant’s Request For Changes.  If Tenant shall request changes to the Tenant Improvements that are not reflected in the Space Plan or TI Construction Drawings, as applicable (“Changes”), Tenant shall request such Changes by notifying Landlord in writing in substantially the same form as the AIA standard change order form (a “Change Request”), which Change Request shall detail the nature and extent of any such Change. Such Change Request must be signed by Tenant’s Representative.  Landlord shall, before proceeding with any Change, use commercially reasonable efforts to respond to Tenant as soon as is reasonably possible with an estimate of: (i) the time it will take, and (ii) the architectural and engineering fees and costs that will be incurred, to analyze such Change Request

 

 

(which costs shall be paid by Tenant to the extent actually incurred, whether or not such change is implemented). Landlord shall thereafter submit to Tenant in writing, within 5 business days of receipt of the Change Request (or such longer period of time as is reasonably required depending on the extent of the Change Request), an analysis of the additional cost or savings involved, including, without limitation, architectural and engineering costs and the period of time, if any, that the Change will extend the date on which Landlord’s Work will be Substantially Complete. Any such delay in the completion of Landlord’s Work caused by a Change, including any suspension of Landlord’s Work while any such Change is being evaluated and/or designed, shall be Tenant Delay.

 

(b)                                 Implementation of Changes.  If Tenant: (i) approves in writing the cost or savings and the estimated extension in the time for completion of Landlord’s Work, if any, and (ii) deposits with Landlord any Excess TI Costs required in connection with such Change, Landlord shall cause the approved Change to be instituted.  Notwithstanding any approval or disapproval by Tenant of any estimate of the delay caused by such proposed Change, the TI Architect’s determination of the amount of Tenant Delay in connection with such Change shall be final and binding on Landlord and Tenant.

 

5.                                      Costs.

 

(a)                                 TI Costs.  Landlord shall be solely responsible for the payment of all design, permits and construction and related costs and expenses in connection with the construction of the Tenant Improvements, including, without limitation, the cost of preparing the TI Construction Drawings and the Space Plans and Landlord’s out-of-pocket expenses (collectively, “TI Costs”).  Notwithstanding anything to the contrary contained herein, in no event shall Landlord be required to pay for any furniture, personal property or other non-Building system materials or equipment, including, but not limited to, Tenant’s voice or data cabling, non-ducted biological safety cabinets and other scientific equipment not incorporated into the Tenant Improvements (collectively “FF&E”), which FF&E shall be at Tenant’s option and cost.

 

(b)                                 Excess TI Costs.  Notwithstanding anything to the contrary contained herein, Tenant acknowledges and agrees that Landlord shall have no responsibility for any costs arising from or related to (i) Tenant’s changes to the Space Plan, (ii) Tenant’s changes to the TI Construction Drawings approved pursuant to Section 2(d) hereof, (iii) Tenant Delays, and (iv) the cost of Changes and Change Requests (collectively, “Excess TI Costs”); provided, however, Tenant shall only be responsible for the same to the extent of any net increase in the actual cost of the Tenant Improvements.  Notwithstanding anything to the contrary contained herein, Tenant shall also be responsible for any and all costs relating to the purchase and installation of the Glasswasher (as defined below), provided that Tenant shall have the right, but not the obligation, to use the Glasswasher Allowance to pay for such costs.  Upon Landlord’s request from time to time, Tenant shall deposit with Landlord, as a condition precedent to Landlord’s obligation to complete the Tenant Improvements, 100% of the Excess TI Costs.  If Tenant fails to deposit the Excess TI Costs with Landlord, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of Rent (including, but not limited to, the right to interest at the Default Rate and the right to assess a late charge).  For purposes of any litigation instituted with regard to such amounts, those amounts will be deemed Rent under the Lease.

 

(c)                                  Glasswasher Allowance.  Landlord shall provide to Tenant an allowance of up to $50,000 in the aggregate (“Glasswasher Allowance”) for the purchase and installation of a glasswasher, reasonably acceptable to Landlord and Tenant (“Glasswasher”) in the Premises.  Tenant shall notify Landlord how much, if any, Glasswasher Allowance Tenant has elected to receive from Landlord within 30 days after the mutual execution and delivery of the Lease by the parties.  Such election shall be final

 

 

and binding on Tenant, and may not thereafter be modified without Landlord’s consent, which may be granted or withheld in Landlord’s sole and absolute subjective discretion.  If Tenant elects to use any portion of the Glasswasher Allowance, Tenant shall be responsible for all costs of the Glasswasher in excess of the Glasswasher Allowance.  Tenant shall have no right to the use or benefit (including any reduction to or payment of Base Rent) of any portion of the Glasswasher Allowance not required for the purchase and installation of the Glasswasher.  Any portion of the Glasswasher Allowance actually disbursed shall, to the extent used, result in TI Rent as set forth in the Lease.  If all or any portion of the Glasswasher Allowance is used to purchase or install the Glasswasher, the Glasswasher shall be the property of Landlord and Tenant shall not remove the Glasswasher at the expiration or earlier termination of the Term, nor shall Tenant have the right to remove the Glasswasher from the Premises at any time during the Term.

 

6.                                      Tenant Access.

 

(a)                                 Tenant’s Access Rights.  Landlord hereby agrees to permit Tenant access, at Tenant’s sole risk and expense, to the Building (i) 30 days prior to the Commencement Date to install Tenant’s voice and data cabling, telecommunications and other equipment, and to perform any work required by Tenant other than Landlord’s Work (collectively, “Tenant’s Work”), provided that such Tenant’s Work is coordinated with the TI Architect and the general contractor, and complies with the Lease and all other reasonable restrictions and conditions Landlord may impose, and (ii) prior to the completion of Landlord’s Work, to inspect and observe work in process; all such access shall be during normal business hours or at such other times as are reasonably designated by Landlord.  Notwithstanding the foregoing, Tenant shall have no right to enter onto the Premises or the Project unless and until Tenant shall deliver to Landlord evidence reasonably satisfactory to Landlord demonstrating that any insurance reasonably required by Landlord in connection with such pre-commencement access (including, but not limited to, any insurance that Landlord may require pursuant to the Lease) is in full force and effect.  Any entry by Tenant shall comply with all established safety practices of Landlord’s contractor and Landlord until completion of Landlord’s Work and acceptance thereof by Tenant.

 

(b)                                 No Interference.  Neither Tenant nor any Tenant Party (as defined in the Lease) shall interfere with the performance of Landlord’s Work, nor with any inspections or issuance of final approvals by applicable Governmental Authorities, and upon any such interference, Landlord shall have the right to exclude Tenant and any Tenant Party from the Premises and the Project until Substantial Completion of Landlord’s Work.

 

(c)                                  No Acceptance of Premises.  The fact that Tenant may, with Landlord’s consent, enter into the Project prior to the date Landlord’s Work is Substantially Complete for the purpose of performing Tenant’s Work shall not be deemed an acceptance by Tenant of possession of the Premises, but in such event Tenant shall defend with counsel reasonably acceptable by Landlord, indemnify and hold Landlord harmless from and against any loss of or damage to Tenant’s property, completed work, fixtures, equipment, materials or merchandise, and from liability for death of, or injury to, any person, caused by the act or omission of Tenant or any Tenant Party arising from such access to the Project by Tenant or any Tenant Party prior to the Substantial Completion of the Landlord’s Work.

 

7.                                      Miscellaneous.

 

(a)                                 Consents.  Whenever consent or approval of either party is required under this Work Letter, that party shall not unreasonably withhold, condition or delay such consent or approval, unless expressly set forth herein to the contrary.

 

 

(b)                                 Modification.  No modification, waiver or amendment of this Work Letter or of any of its conditions or provisions shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant.

 

 

Schedule 1

 

Space Plan

 

 

 

 

 

 

 

TRG BUILDERS

 

	
Kala Pharmaceuticals
    	
 
    	
Revised    9/12/13
    
	
100 Beaver Stret
    	
 
    	
 
    
	
Waltham, MA
    	
 
    	
 
    
	
Budget Estimate
    	
 
    	
 
    

 

	
Division/Description
    	
 
    	
Qty
    	
 
    	
UM
    	
 
    	
Unit Cost
    	
 
    	
Total
    	
 
    	
Division Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project   Requirements
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Final cleaning
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor / daily cleaning
    	
 
    	
17
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Debris dumpsters
    	
 
    	
4
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Misc. tools and supplies.
    	
 
    	
2
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reproduction of contract   documents.
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General   safety/protection/barricades, incl maintenance.
    	
 
    	
2
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Safety inspections
    	
 
    	
6
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dust control (materials)
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Draining & shutdown fees (   sprinkler, etc.)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By Others
    	
 
    	
 
    	
 
    
	
General police details/fire watch
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
W/ subs
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Demolition
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove walls per plans
    	
 
    	
717
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove partial suspended ceilings   as required
    	
 
    	
4201
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove carpet as required
    	
 
    	
1207
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove VCT
    	
 
    	
5230
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove doors & frames
    	
 
    	
26
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove GWB ceilings
    	
 
    	
323
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove abandoned lab casework   & hoods
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Haz. Waste abatement &   removal
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By Others
    	
 
    	
 
    	
 
    
	
Common area temp protection,   isolation, exhaust
    	
 
    	
1
    	
 
    	
alw
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
3
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumpsters
    	
 
    	
3
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Concrete &   Masonry
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
No work
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Steel & misc.   iron
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
No work
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rough and Finish   Carpentry
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Misc. carpentry labor
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By super
    	
 
    	
 
    	
 
    
	
Installation of doors &   hardware
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By super
    	
 
    	
 
    	
 
    
	
New Cafe / meeting millwork   uppers & lowers
    	
 
    	
16
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Allowance to patch wood window   sills per new layout
    	
 
    	
84
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lab supply & office supply   shelving / bench
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By Others
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
3
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumpsters
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thermal and   Moisture Protection
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Misc caulking
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
In painting
    	
 
    	
 
    	
 
    

 

Page 1 of 5

 

 

	
Division/Description
    	
 
    	
Qty
    	
 
    	
UM
    	
 
    	
Unit Cost
    	
 
    	
Total
    	
 
    	
Division Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Doors,   Frames and Hardware
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reuse existing   office doors & frames as possible
    	
 
    	
5
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New wood doors, frames &   hardware
    	
 
    	
12
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New HM sidelite frames
    	
 
    	
4
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reuse existing sidelite frames
    	
 
    	
6
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
Specially / card access hardware
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Glass and Glazing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remove & reinstall existing   glass at sidelites
    	
 
    	
6
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New glass door sidelite glazing
    	
 
    	
4
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New 4’ high borrowed lite glass   at Café / Meeting
    	
 
    	
14
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New interior butt glazed glass   wall at Café / meeting
    	
 
    	
14
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New interior butt glazed glass   wall at Executive Office
    	
 
    	
10
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vision kits at doors
    	
 
    	
3
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conf. room & main entry glass
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Existing
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
1
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gypsum Drywall
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Install door frames
    	
 
    	
17
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Install sidelite frames
    	
 
    	
10
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New 10’ GWB partitions
    	
 
    	
443
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New full ht GWB partitions
    	
 
    	
90
    	
 
    	
If
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Inwall blocking
    	
 
    	
1
    	
 
    	
a/w
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Allowance for misc. patch at demo   areas
    	
 
    	
1
    	
 
    	
a/w
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Extend existing to clock as   required for demising
    	
 
    	
325
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GWB. ceilings
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
3
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumpsters
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Acoustic Ceilings
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New Mylar ceiling tiles in   existing grid
    	
 
    	
3,385
    	
 
    	
sf
    	
 
    	
7.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New suspended ceilings as required   to match @ office areas
    	
 
    	
5,292
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New suspended ceiling at   Cafeteria.
    	
 
    	
550
    	
 
    	
sf
    	
 
    	
4.30
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
3
    	
 
    	
dys
    	
 
    	
400
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumpsters
    	
 
    	
0.50
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Page 2 of 5

 

 

	
Division/Description
    	
 
    	
Qty
    	
 
    	
UM
    	
 
    	
Unit Cost
    	
 
    	
Total
    	
 
    	
Division Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Flooring   Systems
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sheet vinyl in   BL-2 lab
    	
 
    	
30
    	
 
    	
sy
    	
 
    	
95
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New VCT Cafeteria / Meeting
    	
 
    	
550
    	
 
    	
sf
    	
 
    	
2.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New VCT at main labs & lab   corridor
    	
 
    	
3,538
    	
 
    	
sf
    	
 
    	
2.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New VCT at Lab supply
    	
 
    	
187
    	
 
    	
sf
    	
 
    	
2.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vinyl baseboard
    	
 
    	
1,388
    	
 
    	
If
    	
 
    	
2.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Floor prep
    	
 
    	
4,200
    	
 
    	
sf
    	
 
    	
1.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carpet for Exec. Area 3 offices
    	
 
    	
67
    	
 
    	
sy
    	
 
    	
35
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Caroet for offices adjacent to   café
    	
 
    	
34
    	
 
    	
sy
    	
 
    	
35
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carpet at open office area
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Carpet at conf. room
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Carpet at reception
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Epoxy flooring in glass wash
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
New carpet at new offices
    	
 
    	
7
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New carpet at small conf. rooms
    	
 
    	
2
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
Subcontractor quote
    	
 
    	
1
    	
 
    	
qt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
2
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumpsters
    	
 
    	
0.50
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Painting
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Epoxy paint new & existing   walls at lab & lab support rooms
    	
 
    	
4,474
    	
 
    	
sf
    	
 
    	
1.10
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Latex prime & paint at new   & existing office & office support areas
    	
 
    	
7,920
    	
 
    	
sf
    	
 
    	
0.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Paint new & existing door   & sidelite frames
    	
 
    	
16
    	
 
    	
ea
    	
 
    	
1.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Existing paint to remain at   existing to remain areas
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
2
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Specialties &   furnishings
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Supply & install Dishwasher
    	
 
    	
1
    	
 
    	
alw
    	
 
    	
650
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Supply & install Ref.
    	
 
    	
1
    	
 
    	
alw
    	
 
    	
1,400
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Office furniture & cubicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
Supply & install Lancer 1400   LXPGW (Labrepco qt)
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
Sales tax for Lancer equipment
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
Remove & dispose of existing   wash equipment
    	
 
    	
1
    	
 
    	
qt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laboratory equipment (BSC’s,   etc.)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
Reception desk
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laboratory Casework
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Supply & install new fixed   lab casework island benches per plans
    	
 
    	
4
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New island bench reagent shelving   per plans
    	
 
    	
3
    	
 
    	
pcs
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New wall bench with epoxy sink at   Analytical
    	
 
    	
29
    	
 
    	
If
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New wall bench at Ancillary lab
    	
 
    	
13
    	
 
    	
If
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
New island bench sink bases with   epoxy sinks
    	
 
    	
2
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
Island benches to have 6’ wide epoxy   tops
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
Subcontractor quote (LFI&S)
    	
 
    	
1
    	
 
    	
qt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6’ Chemical Fume hoods
    	
 
    	
5
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
New Chemical Fume Hoods
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    	
 
    
	
BL2 lab bench
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Glasswash Room lab bench
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
General labor   & daily cleanup
    	
 
    	
2
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Page 3 of 5

 

 

	
Division Description
    	
 
    	
Qty
    	
 
    	
UM
    	
 
    	
Unit Cost
    	
 
    	
Total
    	
 
    	
Division Total
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fire Protection
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Relocate heads per code at areas of renovation
    	
 
    	
5,292
    	
 
    	
sf
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fire protection engineering
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
2
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Draining & shut down fees
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Plumbing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Demo & disconnect of existing   adandoned services
    	
 
    	
1
    	
 
    	
is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
New Cafteria sink, piping, drain & DW   connection
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
New vacuum piping & drops (connect to   existing mains)
    	
 
    	
10
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Now C, A piping & drops (connect to existing   mains)
    	
 
    	
10
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
New gaseous N2 piping to existing CFH’s
    	
 
    	
5
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Design & engineering & permits
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Change out sinks at existing lab (water,   drain, RODI & EW)
    	
 
    	
3
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Disconnect existing GW & connect to new   Lancer unit
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Subcontractor budget (NSMC)
    	
 
    	
1
    	
 
    	
bgt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Existing sinks at BL2 & GW rooms
    	
 
    	
3
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    
	
Utilities & piping to furne hoods 
    	
 
    	
5
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    
	
Vacuum pump, Air compressor & RODI system
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    
	
Existing ES / EW stations & piping
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    
	
N2 / Specialty gas manfolds
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    
	
Natural gas piping
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    
	
New RODI piping & drops
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
None shown
    	
 
    	
 
    
	
Liquid N2 & piping
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    
	
Process chiller & chiller equipment piping
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By others
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
HVAC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Demo and Make safe hot water piping to   existing reheat coils
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Demo and Make safe supply and exhaust valves   in existing holding room
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Provide four new VAV boxes with re heats   (cafe, conference, and offices
    	
 
    	
4
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
New controls and wiring
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Disconnect and make safe existing hood
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Programing
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Graphics upgrade to existing controls
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Hot water piping to new coils
    	
 
    	
5
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Pipe and duct insulation
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Start up, testing, balancing
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Design & engineering & permits
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Subcontractor budget (ESI)
    	
 
    	
1
    	
 
    	
bgt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General labor & daily cleanup
    	
 
    	
2
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Electrical
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fixtures and switching
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Recepticals and wire mold
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Re-use fixtures where possible
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
New parabolic lights in new private offices
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Power wiring to new HVAC equipment
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Relocate existing panels in Future cafe
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Distribution and feeds
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Fire alarm
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
misc power for equipment
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
480 v 3 ph power for new GW
    	
 
    	
1
    	
 
    	
ea
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Design & engineering & permits
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    
	
Ring & String Tenant supplied T/D wiring
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    

 

Page 4 of 5

 

 

	
Division/Description
    	
 
    	
Qty
    	
 
    	
UM
    	
 
    	
Unit Cost
    	
 
    	
Total
    	
 
    	
Division Total
    	
 
    
	
Subcontractor budget   (IES)
    	
 
    	
1
    	
 
    	
bgt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ring &   String for Tenant supplied T/D wiring
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
inc
    	
 
    	
 
    	
 
    
	
T/D wiring
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
By Others
    	
 
    	
 
    	
 
    
	
Existing Laboratory   lighting
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Existing glass   wash room lighting & power
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
To remain
    	
 
    	
 
    	
 
    
	
Engineering
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Architectural   services (Archdesign)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MEP Engineering
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
WJ subs
    	
 
    	
 
    	
 
    
	
Structural   engineering
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    	
 
    
	
Pre-construction   & planner
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Permits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fire department   fees
    	
 
    	
1
    	
 
    	
Is
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Building Permit   fees
    	
 
    	
22
    	
 
    	
%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
I&I fees
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
EXCLUDED
    	
 
    	
 
    	
 
    
	
Supervision   & Management
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project Manager (2/5   time)
    	
 
    	
8
    	
 
    	
wks
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Working   Superintendent
    	
 
    	
8
    	
 
    	
wks
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Admin &   accounting
    	
 
    	
6
    	
 
    	
dys
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General   Conditions
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Field Office
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Field office   supplies
    	
 
    	
2
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Courier/overnight/postage
    	
 
    	
2
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Drinking water
    	
 
    	
2
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sanitary   facilities
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use existing
    	
 
    	
 
    	
 
    
	
Cell Phone &   wireless usage
    	
 
    	
200
    	
 
    	
mo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General   Liability Insurance
    	
 
    	
0.8
    	
 
    	
%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bond
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Excluded
    	
 
    	
 
    	
 
    

 

Clarifications:

 

1) Estimate is based on normal working hours (7:00-3:30 M-F)

2) Estimate is based on a single phase of construction

3) Estimate is based on drawings: Space Plan Option “D” 8/19/13 & KALA equipment list 82313 by John R. Refuse AIA

4) Estimate EXCLUDES any new CFH’s

 

Page 5 of 5

 

 

EXHIBIT D TO LEASE

 

ACKNOWLEDGMENT OF COMMENCEMENT DATE

 

This ACKNOWLEDGMENT OF COMMENCEMENT DATE is made this       day of               ,      , between ARE-MA REGION NO. 9, LLC, a Delaware limited liability company (“Landlord”), and KALA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”), and is attached to and made a part of the Lease dated             ,       (the “Lease”), by and between Landlord and Tenant.  Any initially capitalized terms used but not defined herein shall have the meanings given them in the Lease.

 

Landlord and Tenant hereby acknowledge and agree, for all purposes of the Lease, that the Commencement Date is             ,      , and the termination date of the Base Term of the Lease shall be midnight on             ,      .  In case of a conflict between the terms of the Lease and the terms of this Acknowledgment of Commencement Date, this Acknowledgment of Commencement Date shall control for all purposes.

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this ACKNOWLEDGMENT OF COMMENCEMENT DATE to be effective on the date first above written.

 

	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KALA   PHARMACEUTICALS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
ARE-MA   REGION NO. 9, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
ARE-MA   REGION NO. 9MM, LLC, a Delaware limited liability company, manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ALEXANDRIA   REAL ESTATE EQUITIES, L.P., a Delaware limited partnership, its member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ARE-QRS   CORP.,
    
	
 
    	
 
    	
a   Maryland corporation,
    
	
 
    	
 
    	
general   partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Its:
    	
 
    
							

 

1

 

EXHIBIT E TO LEASE

 

Rules and Regulations

 

1.                                      The sidewalk, entries, and driveways of the Project shall not be obstructed by Tenant, or any Tenant Party, or used by them for any purpose other than ingress and egress to and from the Premises.

 

2.                                      Tenant shall not place any objects, including antennas, outdoor furniture, etc., in the parking areas, landscaped areas or other areas outside of its Premises, or on the roof of the Project.

 

3.                                      Except for animals assisting the disabled, no animals shall be allowed in the offices, halls, or corridors in the Project.

 

4.                                      Tenant shall not disturb the occupants of the Project or adjoining buildings by the use of any radio or musical instrument or by the making of loud or improper noises.

 

5.                                      If Tenant desires telegraphic, telephonic or other electric connections in the Premises, Landlord or its agent will direct the electrician as to where and how the wires may be introduced; and, without such direction, no boring or cutting of wires will be permitted.  Any such installation or connection shall be made at Tenant’s expense.

 

6.                                      Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical apparatus in the Premises, except as specifically approved in the Lease.  The use of oil, gas or inflammable liquids for heating, lighting or any other purpose is expressly prohibited.  Explosives or other articles deemed extra hazardous shall not be brought into the Project.

 

7.                                      Parking any type of recreational vehicles is specifically prohibited on or about the Project.  Except for the overnight parking of operative vehicles, no vehicle of any type shall be stored in the parking areas at any time.  In the event that a vehicle is disabled, it shall be removed within 48 hours.  There shall be no “For Sale” or other advertising signs on or about any parked vehicle.  All vehicles shall be parked in the designated parking areas in conformity with all signs and other markings.  All parking will be open parking, and no reserved parking, numbering or lettering of individual spaces will be permitted except as specified by Landlord.

 

8.                                      Tenant shall maintain the Premises free from rodents, insects and other pests.

 

9.                                      Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs or who shall in any manner do any act in violation of the Rules and Regulations of the Project.

 

10.                               Tenant shall not cause any unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness.  Landlord shall not be responsible to Tenant for any loss of property on the Premises, however occurring, or for any damage done to the effects of Tenant by the janitors or any other employee or person.

 

11.                               Tenant shall give Landlord prompt notice of any defects in the water, lawn sprinkler, sewage, gas pipes, electrical lights and fixtures, heating apparatus, or any other service equipment affecting the Premises.

 

1

 

12.                               Tenant shall not permit storage outside the Premises, including without limitation, outside storage of trucks and other vehicles, or dumping of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises.

 

13.                               All moveable trash receptacles provided by the trash disposal firm for the Premises must be kept in the trash enclosure areas, if any, provided for that purpose.

 

14.                               No auction, public or private, will be permitted on the Premises or the Project.

 

15.                               No awnings shall be placed over the windows in the Premises except with the prior written consent of Landlord.

 

16.                               The Premises shall not be used for lodging, sleeping or cooking or for any immoral or illegal purposes or for any purpose other than that specified in the Lease.  No gaming devices shall be operated in the Premises.

 

17.                               Tenant shall ascertain from Landlord the maximum amount of electrical current which can safely be used in the Premises, taking into account the capacity of the electrical wiring in the Project and the Premises and the needs of other tenants, and shall not use more than such safe capacity.  Landlord’s consent to the installation of electric equipment shall not relieve Tenant from the obligation not to use more electricity than such safe capacity.

 

18.                               Tenant assumes full responsibility for protecting the Premises from theft, robbery and pilferage.

 

19.                               Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises and shall keep all such machinery free of vibration, noise and air waves which may be transmitted beyond the Premises.

 

2

 

EXHIBIT F TO LEASE

 

TENANT’S PERSONAL PROPERTY

 

None.

 

1

 

EXHIBIT G TO LEASE

 

HAZARDOUS MATERIALS LIST

 

	
Kala   Pharmaceuticals, Inc.
    	
FLAMMABLE CHEMICALS   LISTING
    	
Sep-2013
    

 

Kala Pharmaceuticals Inc.

Third Floor, 135 BEAVER STREET

WALTHAM, MA

 

Sep-13

 

Requested Permit Amounts:

 

	
Class I
    	
 
    	
100 gallons
    
	
Class II
    	
 
    	
20 gallons
    
	
Class III
    	
 
    	
20 gallons
    
	
Flammable gas
    	
 
    	
300 cu ft
    
	
Flammable solids
    	
 
    	
<10 lbs
    

 

FLAMMABLE CHEMICALS LISTING

 

FLAMMABLE LIQUIDS-Class 1A, 1B, 1C

 

	
 
    	
 
    	
Substance
    	
 
    	
Flammable Class
    	
 
    	
Physical state
    	
 
    	
Volume (L)
    	
 
    	
Volume (Gal)
    
	
10684
    	
 
    	
Diethyl ether
    	
 
    	
1A
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10265
    	
 
    	
Diethyl ether
    	
 
    	
1A
    	
 
    	
liquid
    	
 
    	
20
    	
 
    	
5.14
    
	
NA
    	
 
    	
Waste Class 1A
    	
 
    	
1A
    	
 
    	
liquid
    	
 
    	
77.6
    	
 
    	
20.00
    
	
total volume Class 1A:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
101.8
    	
 
    	
26.17
    
	
10440
    	
 
    	
1,4-Dioxane
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10705
    	
 
    	
2-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10723
    	
 
    	
2-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10724
    	
 
    	
2-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10746
    	
 
    	
2-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10747
    	
 
    	
2-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10713
    	
 
    	
Acetone
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10719
    	
 
    	
Acetone
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10943
    	
 
    	
Acetone
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10753
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10729
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10725
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10730
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10702
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10697
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10386
    	
 
    	
Acetonitrile
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10272
    	
 
    	
Benzene
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10392
    	
 
    	
Cyclohexane
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10289
    	
 
    	
Ethanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10748
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10749
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10755
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10756
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10718
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10715
    	
 
    	
Ethyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10958
    	
 
    	
Hexanes
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10393
    	
 
    	
Isopropyl ether
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10738
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10739
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10734
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10740
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    

 

1

 

	
10689
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10391
    	
 
    	
Methanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10434
    	
 
    	
Methyl ethyl ketone
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10279
    	
 
    	
Methyl ethyl ketone
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10546
    	
 
    	
n-Propanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10288
    	
 
    	
Propyl acetate
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10292
    	
 
    	
Pyridine
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10517
    	
 
    	
t-Butanol
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10647
    	
 
    	
Tetrahydrofuran
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10670
    	
 
    	
Tetrahydrofuran
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
026
    
	
10290
    	
 
    	
Toluene
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10375
    	
 
    	
Methyl tert-butyl ether
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10962
    	
 
    	
1,2-Dichloroethane
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10962
    	
 
    	
1,2-Dichloroethane
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.28
    
	
NA
    	
 
    	
Waste, Class 1B
    	
 
    	
1B
    	
 
    	
liquid
    	
 
    	
155.6
    	
 
    	
40.00
    
	
total volume Class 1B:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
284.6
    	
 
    	
73.16
    
	
10295
    	
 
    	
Nitromethane
    	
 
    	
1C
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10269
    	
 
    	
1-Butanol
    	
 
    	
1C
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
total volume Class 1C:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2
    	
 
    	
0.51
    
	
total volume Class 1:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
388.4
    	
 
    	
99.85
    

 

NOTE: Total volume of Class I is higher than the June 2013 list by 9 gallons due to increase in Waste from 51 to 60 gallons.

 

COMBUSTIBLE LIQUIDS-Class II

 

	
 
    	
 
    	
Substance
    	
 
    	
Flammable Class
    	
 
    	
Physical state
    	
 
    	
Volume (L)
    	
 
    	
Volume (Gal)
    
	
10278
    	
 
    	
1,2-Dimethoxyethane
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10268
    	
 
    	
N,N-Dimethylformamide
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10731
    	
 
    	
N,N-Dimethylformamide
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10277
    	
 
    	
1-Octanethiol
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10291
    	
 
    	
Hexan-1-ol
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10274
    	
 
    	
2-Methoxyethyl ether
    	
 
    	
2
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
total   volume Class 2:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
6
    	
 
    	
1.54
    

 

COMBUSTIBLE LIQUIDS-Class III

 

	
 
    	
 
    	
Substance
    	
 
    	
Flammable Class
    	
 
    	
Physical state
    	
 
    	
Volume (L)
    	
 
    	
Volume (Gal)
    
	
10520
    	
 
    	
N,N-Dimethylacetamide
    	
 
    	
3A
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10264
    	
 
    	
Dimethyl sulfoxide
    	
 
    	
3
    	
 
    	
liquid
    	
 
    	
4
    	
 
    	
1.03
    
	
10273
    	
 
    	
Etahanolamine
    	
 
    	
3A
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10297
    	
 
    	
Ethylene glycol
    	
 
    	
3B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10276
    	
 
    	
Ethylene glycol
    	
 
    	
3B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10632
    	
 
    	
N-Methyl-2-pyrrolidone
    	
 
    	
3A
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
10293
    	
 
    	
Propylene glycol
    	
 
    	
3B
    	
 
    	
liquid
    	
 
    	
1
    	
 
    	
0.26
    
	
total   volume Class 3:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10
    	
 
    	
2.57
    

 

FLAMMABLE GASES

 

	
 
    	
 
    	
Substance
    	
 
    	
Vol   (cu. ft)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
NA
    	
 
    	
HYDROGEN
    	
 
    	
100
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
10390
    	
 
    	
BUTANE CYL
    	
 
    	
30
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
10389
    	
 
    	
PROPANE-1-1
    	
 
    	
17
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
total volume
    	
 
    	
 
    	
 
    	
147
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2

 

FIRST AMENDMENT TO LEASE

 

This First Amendment (the “First Amendment”) to Lease is made as of June 30, 2016, by and between ARE-MA REGION NO. 9, LLC, a Delaware limited liability company (“Landlord”), and KALA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

A.            Landlord and Tenant are now parties to that certain Lease Agreement dated as of September 30, 2013 (the “Lease”), wherein Landlord leases to Tenant certain premises containing approximately 11,747 rentable square feet (the “Premises”) located at 100 Beaver Street, Waltham, Massachusetts, as more particularly described therein.  Capitalized terms used herein without definition shall have the meanings defined for such terms in the Lease.

 

B.            The term of the Lease is scheduled to expire on January 31, 2017.

 

C.            Landlord and Tenant desire to amend the Lease to, among other things, extend the term of the Lease through January 31, 2019 (the “First Amendment Expiration Date”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.                                      Term.  The expiration date of the term of the Lease is hereby extended through the First Amendment Expiration Date.  Except as otherwise expressly provided in this First Amendment, Tenant’s occupancy of the Premises through the First Amendment Expiration Date shall be on an “as-is” basis and Landlord shall have no obligation to provide any tenant improvement allowance or to make any alterations to the Premises.

 

2.                                      Base Rent.  Tenant shall continue to pay Base Rent as provided in the Lease through January 31, 2017.  For the period commencing on February 1, 2017, through January 31, 2018, Tenant shall pay Base Rent for the Premises equal to $34.00 NNN per rentable square foot of the Premises per year.  For the period commencing on February 1, 2018, through January 31, 2019, Tenant shall pay Base Rent for the Premises equal to $35.00 NNN per rentable square foot of the Premises per year.

 

3.                                      Allowances.  Landlord shall make available to Tenant (i) a tenant improvement allowance of up to $10,000 (the “Base Allowance”), and (ii) an additional tenant improvement allowance of up to $20,000 (the “Additional Allowance”), all for the design and construction of improvements to the Premises desired by Tenant and performed by Landlord, which improvements shall be of a fixed and permanent nature and be acceptable to Landlord in Landlord’s sole and absolute discretion (the “Premises Improvements”).  Tenant shall deliver to Landlord, for Landlord’s review and approval plans and specifications detailing Tenant’s requirements for the Premises Improvements Landlord shall cause the Premises Improvements approved by Landlord to be completed in a good and workmanlike manner in accordance with Legal Requirements.  Notwithstanding the foregoing, if the cost of the Premises Improvements exceeds the Base Allowance and the Additional Allowance elected to be used by Tenant, Tenant shall deposit with Landlord, as a condition precedent to Landlord’s obligation to perform the Premises Improvements, 100% of the then current costs in excess of the remaining Base Allowance and Additional Allowance elected to be used by Tenant (“Excess Costs”).  If Tenant fails to deposit any Excess Costs with Landlord, Landlord shall have all of the rights and remedies set forth in this Lease for nonpayment of Rent.  The Base Allowance and the Additional Allowance shall only be available

 

1

 

for use by Tenant for the Premises Improvements until June 30, 2017.  Any portion of the Base Allowance or the Additional Allowance which has not been properly requested by Tenant from Landlord on or before June 30.  2017, shall be forfeited and shall not be available for use by Tenant.

 

Commencing on the first day of the month following the date that any portion of the Additional Allowance has been disbursed by Landlord for the Premises Improvements and continuing thereafter on the first day of each month through the First Amendment Expiration Date, Tenant shall pay the amount necessary to fully amortize the portion of the Additional Allowance actually funded by Landlord, if any, over a period of 5 years in equal monthly payments with interest at a rate of 8% per annum.

 

Tenant acknowledges that Landlord shall require access to the Premises in order to complete the Premises Improvements desired by Tenant pursuant to this Section 3.  Landlord and its contractors and agents shall have the right to enter the Premises to complete such Premises Improvements.  Tenant acknowledges that Landlord’s completion of the Premises Improvements may adversely affect Tenant’s use and occupancy of the Premises.  Tenant waives all claims against Landlord for rent abatement in connection with the Premises Improvements.

 

4.                                      Right to Expand.  Section 39 of the Lease is hereby deleted in its entirety and is null and void and of no further force or effect and Tenant has no right to expand the Premises.

 

5.                                      Right to Extend.  Section 40 of the Lease is hereby deleted in its entirety and is null and void and of no further force or effect and Tenant has no right to extend the Term of the Lease beyond the First Amendment Expiration Date.

 

6.                                      OFAC.  Tenant is currently (a) in compliance with and shall at all times during the Term of the Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of the Lease be listed on, the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, which are all maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

 

7.                                      Miscellaneous.

 

a.                                      This First Amendment is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions.  This First Amendment may be amended only by an agreement in writing, signed by the parties hereto.

 

b.                                      This First Amendment is binding upon and shall inure to the benefit of the parties hereto and their respective agents and assigns.

 

c.                                       This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original but all of which when taken together shall constitute one and the same instrument.  The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this First Amendment attached thereto.

 

2

 

d.                                      Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with the transaction reflected in this First Amendment and that no Broker brought about this transaction.  Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this First Amendment.

 

e.                                       Except as amended and/or modified by this First Amendment.  the Lease is hereby ratified and confirmed and all other terms of the Lease shall remain in full force and effect, unaltered and unchanged by this First Amendment.  In the event of any conflict between the provisions of this First Amendment and the provisions of the Lease, the provisions of this First Amendment shall prevail.  Whether or not specifically amended by this First Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and intent of this First Amendment.

 

[Signatures are on the next page]

 

3

 

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the day and year first above written.

 

 

	
 
    	
TENANT:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
KALA PHARMACEUTICALS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mary Reumuth
    
	
 
    	
Its: 
    	
VP Finance and Corporate Controller
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
LANDLORD:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARE-MA REGION NO. 9, LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Alexandria Real Estate Equities, L.P.,
    
	
 
    	
 
    	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    	
 
    	
its member
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
ARE-ORS Corp.,
    
	
 
    	
 
    	
 
    	
 
    	
a Maryland corporation
    
	
 
    	
 
    	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/ Eric S. Johnson
    
	
 
    	
 
    	
 
    	
 
    	
Its:
    	
Senior Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
RE Legal Affairs
    

 

4

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