Document:

Exhibit 10.40

 

FIRST AMENDMENT TO LEASE

 

This FIRST
AMENDMENT TO LEASE (this “Amendment”) is
made as of November 29, 2005 (the “Effective
Date”) by and between DIV NEEDHAM 115 LLC, a Massachusetts limited
liability company with an address of c/o The Davis Companies, One Appleton
Street, Boston, MA 02116 (“Landlord”) and
AVANT IMMUNOTHERAPEUTICS, INC., a Delaware corporation, with an address of 119
Fourth Avenue, Needham, Massachusetts 02494 (“Tenant”).

 

RECITAL S

 

A.            Fourth
Avenue Ventures Limited Partnership (“Fourth Avenue Ventures”),
as landlord, and T Cell Sciences, Inc. (“T Cell”)
entered into that certain lease dated May 1, 1996, as amended by letter
agreement dated April 23, 2001 (collectively, the “Lease”)
of certain premises consisting of 54,317 rentable square feet of space located
on a portion of the first (1st) floor and a
portion of the second (2nd)
floor (the “Original Premises”) in the
building located at and commonly known as 115-119 Fourth Avenue, Needham,
Massachusetts (the “Building”). 

 

B.            Landlord
is the successor in interest to Fourth Avenue Ventures.

 

C.            Tenant
is the successor in interest to T Cell.

 

D.            The
Lease Term commenced on May 1, 1996 and is currently scheduled to expire on
April 30, 2007.

 

E.             Landlord
and Tenant wish to amend the Lease to (i) reduce the Original Premises to
consist of 35,189 rentable square feet on the first (1st) floor of the Building as
delineated on Exhibit A attached hereto (the
“Retained Premises”) and terminate the
Lease as to the remainder of the Original Premises effective as of the Early
Termination Date (as defined in Section 2 of this Amendment); (ii) set forth
the obligations of Landlord to perform and pay for the Base Building Work (as
defined in Exhibit C attached hereto) and
the respective obligations of Landlord and Tenant to perform and pay for the
Tenant Improvement Work (as defined in Exhibit C
attached hereto) to the Retained Premises; (iii) extend the Lease Term for the Retained
Premises; and (iv) amend certain other terms of the Lease.

 

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

 

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

 

2.             Termination
of Lease and Surrender of Terminated Premises. The term of the Lease with
respect to the portion of the Original Premises consisting of 19,128 rentable
square feet on the second (2nd)
floor of the Building (hereinafter the “Terminated Premises”)
shall terminate without further obligation or liability for periods after the
date of termination on the

 

 

part of Landlord or Tenant on that date which
is ninety (90) days after Landlord Substantially Completes the Tenant
Improvement Work (the “Early Termination Date”).
From and after the Early Termination Date, the term “Premises” wherever it
appears in the Lease shall mean and refer to the Retained Premises only.
Notwithstanding anything in the Lease or this Amendment. Tenant shall surrender
and deliver the Terminated Premises to Landlord in accordance with the terms of
the Lease for delivery of the Demised Premises upon termination on or before
that date (the “Terminated Premises Surrender Date”)
which is no later than fifteen (15) business days after Landlord substantially
completes the Tenant Improvement Work (as defined on Exhibit C),
such Terminated Premises to be broom clean, vacant and free from all occupants,
subtenants, or other persons or entities claiming rights of possession by,
through or under Tenant, free of all Hazardous Materials and Substances,
including, without limitation, materials and substances of a biological nature,
and free of all furniture, equipment, fixtures and other property of Tenant. Except
as set forth in the immediately preceding sentence, Landlord hereby accepts the
condition of the Terminated Premises as of the date hereof and Tenant shall
have no obligation to remove any improvements or alterations that have been
made to the Terminated Premises as of the date hereof, except that Tenant shall
remove any Existing Equipment listed as being required to be removed on Exhibit B attached hereto which is
located in the Terminated Premises and relocate the same to the Retained
Premises. Any delay by Tenant in surrendering the Premises in the condition
specified in the immediately preceding sentence beyond the end of day on the Terminated
Premises Surrender Date shall postpone the Early Termination Date by a similar period.
During the aforementioned fifteen (15) business day period, Landlord shall have
access to the Surrendered Premises for the purpose of commencing work that
Landlord desires to perform thereat; provided Landlord will not unreasonably
interfere with Tenant’s process of vacating the same.

 

3.             Extension
of Term. The Lease Term for the Retained Premises only is hereby extended
for an additional term of ten (10) years (the “Extension
Term”) commencing on May 1, 2007 (the “Extension
Term Commencement Date”) and expiring on April 30, 2017, unless
sooner terminated in accordance with the terms and conditions of the Lease.
Except as otherwise set forth in this Amendment, the Extension Term shall be
upon all of the terms and conditions of the Lease to the extent such terms are
applicable to the Extension Term and are not inconsistent with this Amendment.
From and after the Extension Term Commencement Date, the phrase or phrases “Lease
Term” or “Term” or “term of this Lease” or “the initial term” or “original term”
as used in the Lease shall be deemed to refer to the initial Lease Term as
herein extended for the Extension Term (as hereinafter defined).

 

4.             Amendment
of Terms.

 

(a)           As
of the Effective Date, the following terms whenever they appear in the Lease
shall have the following meanings:

 

	
  LANDLORD:

  	
   

  	
  DIV NEEDHAM 115 LLC

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  AVANT IMMUNOTHERAPEUTICS, INC.

  

 

2

 

	
  LEASE TERM:

  	
   

  	
  The period commencing on May 1, 1996 and expiring
  on April 30, 2017, unless terminated earlier in accordance with this Lease.

  
	
   

  	
   

  	
   

  
	
  TERM EXPIRATION DATE:

  	
   

  	
  April 30, 2017, unless terminated earlier in accordance with this
  Lease.

  
	
   

  	
   

  	
   

  
	
  SECURITY DEPOSIT:

  	
   

  	
  $70,251.69 in cash.

  
	
   

  	
   

  	
   

  
	
  (b)           As
  of the Early Termination Date, the following terms whenever they appear in
  the Lease shall have the following meanings:

  
	
   

  	
   

  	
   

  
	
  PREMISES:

  	
   

  	
  Approximately 35,189 rentable square feet
  on the first (1st) floor of the Building and
  depicted on Exhibit A attached hereto
  (described in this Amendment as the “Retained Premises”).

  
	
   

  	
   

  	
   

  
	
  PREMISES SQUARE FOOTAGE:

  	
   

  	
  Approximately 35,189 rentable square feet.

  
	
   

  	
   

  	
   

  
	
  TENANT’S PROPORTIONATE FRACTION:

  	
   

  	
  44.78%

  

 

5.             (a)
Annual Fixed Rent. Tenant shall continue to pay Annual Fixed Rent, Additional
Rent and other charges due under the Lease (i) with respect to the Terminated Premises
in accordance with the terms of the Lease through and including the Early
Termination Date and (ii) with respect to the Retained Premises in accordance
with the terms of the Lease through and including the originally scheduled
expiration date of April 30, 2007. Beginning on the Extension Term Commencement
Date, and throughout the remainder of the Lease Term, Tenant shall pay Annual
Fixed Rent with respect to the Retained Premises only to Landlord in the manner
and in accordance with the terms and conditions of the Lease, in the amounts
set forth below:

 

3

 

	
   

  	
   

  	
  ANNUAL

  	
   

  	
   

  	
   

  
	
  TERM

  	
   

  	
  FIXED RENT

  	
   

  	
  MONTHLY INSTALLMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From May 1,
  2007 through and including April 30, 2009

  	
   

  	
  $

  	
  879,725.00

  	
   

  	
  $

  	
  73,310.42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From May 1,
  2009 through and including April 30, 2011

  	
   

  	
  $

  	
  950,103.00

  	
   

  	
  $

  	
  79,175.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From May 1,
  2011 through and including April 30, 2013

  	
   

  	
  $

  	
  1,020,481.00

  	
   

  	
  $

  	
  85,040.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From May 1,
  2013 through and including April 30, 2015

  	
   

  	
  $

  	
  1,090,859.00

  	
   

  	
  $

  	
  90,904.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From May 1,
  2015 through and including April 30, 2017

  	
   

  	
  $

  	
  1,161,237.00

  	
   

  	
  $

  	
  96,769.75

  	
   

  

 

(b)           Tenant’s
Percentage Share of Operating Expenses. Section 5.2 of the Lease is amended
to provide that in no event shall there be included in the Operating Expenses allocable
to Tenant the items list in Exhibit G
hereto.

 

6.             Base
Building Work. In consideration of and as part of Tenant’s agreement to extend
the Lease Term as set forth in this Amendment, Landlord covenants to perform a
major upgrade of the exterior of the Building and upgrades and replacements to
certain building systems in the Building to provide Tenant with a quality
location, including, without limitation, installation of a new front
lobby/vestibule, new window system and decorative panels to enhance the appeal
of the building and the energy efficiency thereof, all as more particularly
described on Exhibit C attached hereto and
made a part hereof (the “Base Building Work”).
The Base Building Work shall be performed by Landlord, (i) at Landlord’s sole
cost and expense and without deduction from the Tenant Improvement Allowance
and without inclusion of any such costs and expenses in the Operating Expenses
for the Building, (ii) in compliance with all applicable laws, ordinances,
regulations, rules, permits or other authorizations of any governmental
agency or public or quasi-public authority (the foregoing collectively, “Legal Requirements”), (iii) pursuant to the Phasing
Schedule attached hereto as Exhibit C-2,
(iv) in such manner as to minimize any unreasonable interference or disruption
of Tenant’s use and occupancy of the portions of the Original Premises which
Tenant will occupy during the Base Building Work and Tenant Improvement Work as
more particularly set forth in the Phasing Schedule, and (v) within twenty-one
(21) months following the date on which Landlord obtains a Building Permit for
the Tenant Improvement Work and Tenant delivers that portion of the Retained
Premises which is the subject of Phase I of Exhibit
C-2 attached hereto (which date shall hereinafter be referred to
as the “Base Building Work Commencement Date”),
subject to delays resulting from Tenant Delay and Force Majeure.

 

7.             Tenant
Improvement Work. Promptly after approval of the Construction Documents (as
defined in Exhibit C) by Landlord and
Tenant and Landlord’s receipt of a building permit for the Tenant Improvement
Work, Landlord shall commence and exercise all

 

4

 

reasonable efforts to complete the Tenant Improvement Work in
accordance with the Phasing Schedule attached hereto as Exhibit C-2,
the Budget attached hereto as Exhibit C-3,
and otherwise in accordance with all of the terms and conditions of Exhibit C attached hereto and made
a part hereof by reference.

 

8.              Extension Option. The definition of Extension Term in Section
1.1 and Sections 4.2 and 4.3 of the Lease are hereby deleted in their
entirety and the foregoing new Section
4.2 is substituted in place thereof.

 

“Section 4.2 Option to
Extend.

 

(a)           Provided that there is no event of default of
Tenant in existence and continuing
beyond applicable notice and cure periods (either at the time of exercise or atthe commencement of the extended term),
Tenant shall have the right and option to extend the Lease Term for one extended term (the “Second
Extension Term”) (the first extension term, although not defined, being the period May 1, 2007
through April 30, 2017, inclusive,
and which has, by this Amendment been incorporated into the definition of Lease Term) of five (5) years by giving
written notice to Landlord not later than twelve (12) months prior to the expiration date of the Lease Term. The
effective giving of such notice
of extension by Tenant shall automatically extend the Lease Term for theSecond Extension Term, and no
instrument of renewal or extension need be executed. In the event that Tenant fails timely to give
such notice to Landlord, this Lease shall automatically terminate at the end of the Lease Term then in effect,
and Tenant shall have no further
option to extend the Lease Term. The Second Extension Term shall commence on the day immediately succeeding
the expiration date of the Lease Term, and shall end on the day immediately preceding the fifth (5th) anniversary of the first day of such Second Extension Term. The Second Extension Term shall be on all
the terms and conditions of this
Lease, except: (i) during the Second Extension Term, Tenant shall have no further option to extend the Lease
Term, and (ii) the Annual Fixed Rent for the Second Extension Term shall be equal to 95% of the Fair Market Rental
Value of the Premises as of the commencement of the Second Extension Term
but in no event less than the
Annual Fixed Rent payable under this Lease during the last year of the LeaseTerm immediately preceding the
commencement of the Second Extension Term, taking into account all
relevant factors, determined pursuant to paragraph (b) below.

 

(b)           Promptly after receiving Tenant’s notice
extending the Lease Term pursuant
to paragraph (a) above, Landlord shall provide Tenant with Landlord’s goodfaith estimate of the Fair Market
Rental Value of the Premises for the upcoming Second Extension Term based upon rents then being
charged for space in the Building and if no space is then or has recently been available in the Building, then for
similar space in the Needham Industrial Park and if none then that paid by
tenants entering into leases for first-class
office and laboratory space similar in size, build-out, amenities and term in
the Needham/Newton area of
Massachusetts. If Tenant is unwilling to accept Landlord’s estimate of the Fair Market Rental Value as
set forth in Landlord’s notice referred to above, and the parties are unable to reach agreement thereon within
thirty (30) days after the delivery of such notice by Landlord, then
either party may submit the determination of Fair Market Rental Value of the Premises to arbitration by giving
notice to the other

 

5

 

party naming
the initiating party’s arbitrator within ten (10) days after the expiration of such
thirty (30) day period. Within fifteen (15) days after receiving a notice of
initiation of arbitration, the responding party shall appoint its own
arbitrator by notifying the initiating party of the responding party’s
arbitrator. If the second arbitrator shall not have been so appointed within
such fifteen (15) day period, the Fair Market Rental Value of the Premises
shall be determined by the initiating party’s arbitrator. If the second arbitrator
shall have been so appointed, the two arbitrators thus appointed shall, within fifteen
(15) days after the responding party’s notice of appointment of the second arbitrator,
appoint a third arbitrator. If the two initial arbitrators are unable timely to
agree on the third arbitrator, then either may, on behalf of both, request such
appointment by the Boston office of The American Arbitration Association, or
its successor, or, on its failure, refusal or inability to act, by a court of
competent jurisdiction. Within fifteen (15) days after the appointment of the
third arbitrator, the three arbitrators shall determine the Fair Market Rental
Value of the Premises and give notice thereof to the parties hereto, and the
arbitrators’ determination shall be binding upon the parties. The decision of
the majority of the three arbitrators shall be binding upon Landlord and
Tenant. Failure of a majority of the arbitrators to reach agreement shall
result in the Fair Market Rental Value of the Premises being determined by
averaging the determinations of the three arbitrators, ignoring for the
purposes of such averaging any high and/or low determination which is more than
ten percent (10%) in excess of or less than the middle determination. All arbitrators
shall be appraisers or other qualified real estate professionals who are independent
from the parties who have had at least ten (10) years commercial real estate experience
in the greater Boston area. Each party shall pay the fees of its own
arbitrator, and the fees of the third arbitrator shall be shared equally by the
parties.”

 

9.             Assignment
and Subletting.
Subparagraphs (a) and (b) of Section 9.13 of the Lease are hereby deleted and
the following new subparagraphs (a) and (b) are substituted in place thereof
and the following Paragraphs (f), (g) and (h)are added to said Section 9.13:

 

“(a)         Tenant
shall not assign, transfer, mortgage or pledge this Lease or grant a security
interest in Tenant’s rights hereunder or sublease (which term shall include the
granting of concessions and licenses and the like), all or any part of the
Premises or suffer or permit this Lease to be assigned, transferred or
encumbered in whole or in part whether voluntarily, involuntarily or by
operation of law, or permit the occupancy of the Premises by anyone other than
Tenant without first obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld, conditioned or delayed by Landlord.
Without limiting the foregoing, a dissolution and winding up of Tenant (or its assignee,
as permitted hereunder), occurring in a series of one or more transactions, shall
be deemed an assignment for purposes of this Lease, and shall require Landlord’s
prior written consent, which may be withheld in Landlord’s reasonable
discretion.

 

Notwithstanding
anything in this Lease to the contrary, Tenant shall have the right to sublet
or assign to a parent or subsidiary of Tenant without Landlord consent, but
with notice to Landlord; and Tenant shall have the right to sublet or assign to
an affiliate or to an entity which results from a merger, consolidation or
reorganization involving Tenant (collectively, a “Merger”)
without Landlord’s consent, but with notice to Landlord. In

 

6

 

connection
with a transfer to an affiliate or as part of a Merger, Tenant agrees that if
the affiliate or surviving entity from the Merger, as applicable, does not have
a net worth on a pro forma basis after giving effect to the transfer or Merger,
as applicable, that is equal to or better than the net worth of Tenant as of
December 31, 2005, Tenant or the successor will be obligated to deposit with
Landlord an additional security deposit equal to six (6) months of the base
rent due under this Lease at the time of the transfer. Net worth for purposes
hereof shall mean “the entity’s shareholders’ equity as reported on its Form
10- Q report (or similar financial document reporting shareholders’ or owners’
equity).

 

(b)           Tenant
shall be permitted to transfer or assign this Lease or sublease all or any
portion of the Premises, without Landlord’s consent but with prior notice to Landlord,
to Tenant’s parent company or other entity owning (directly or indirectly) 51% or
more of the outstanding common stock, membership interests or other beneficial ownership
interests of Tenant, or to Tenant’s Subsidiary (as hereinafter defined). Subsidiary
shall be defined as any entity which directly or indirectly is controlled by Tenant
by virtue of Tenant being the beneficial owner of 51% or more of such entity’s outstanding
common stock, membership interests.”

 

“(f)          In
no event may any transfer, assignment, Merger or the like under (a) and (b) infra be
part of a liquidation plan of Tenant or permitted successor under any federal or
state bankruptcy or insolvency laws.”

 

(g)           One-half
(1/2) of any rent or other economic consideration received by Tenant as a
result of any Transfer requiring Landlord’s consent and properly allocable to the
portion of the Premises Transferred, which exceeds (“Excess Rent”),
in the aggregate, (i) the total of the remaining rent which Tenant is obligated
to pay Landlord under this Lease plus (ii) the unamortized value of
those portions of Tenant’s Contribution (as defined in Exhibit C)
allocable to leasehold improvements and fixtures as certified by Tenant to
Landlord based upon sound economic and valuation principles, plus (iii) amounts
paid to Tenant for the purchase of equipment, trade fixtures and other non-real
estate property or assets of Tenant as determined on a reasonable economic basis,
plus (iv) any reasonable tenant fit-up costs, brokerage commissions and
attorneys’ fees actually paid by Tenant in connection with such Transfer
(specifically excluding moving or relocation costs paid to the Transferee),
plus (v) Operating Expenses and Real Estate Taxes (collectively, the “Transfer Costs”) shall be paid to Landlord on a monthly basis
within ten (10) days after receipt thereof as Additional Rent under this Lease,
without affecting or reducing any other obligations of Tenant hereunder. In
calculating Excess Rent for the purposes of the foregoing, the Rent to be
received and the Transfer Costs shall be computed over the period of the
Transfer and recognized (as and if to the extent received by Tenant) on a
monthly basis. Each payment shall be sent with a detailed statement explaining
such amount and/or allocation. Landlord shall have the right to audit Tenant’s
books and records to verify the accuracy of the detailed statement.

 

(h)           Upon
completion of any permitted assignment, the assignee shall agree to assume and
perform obligations of Tenant as tenant under the Lease from and after the

 

7

 

 

assignment,
and the Tenant first named above shall be jointly and severally liable with such
assignee for the obligations of the tenant under the Lease.”

 

10.           Parking.
Three (3) of the parking spaces which Tenant is entitled to use under Section
1.3 of the Lease, which three (3) parking spaces are shown on Exhibit A-2 attached hereto, will,
without additional charge, be designated, marked and identified by Landlord as being
reserved for the exclusive use of Tenant, its employees and invitees. Landlord
shall be under no obligation to enforce Tenant’s exclusive parking rights. The
total number of parking spaces which Tenant shall be entitled to use (including
the designated spaces) is 60.

 

11.           Amendment
of Lease Terms; Inapplicable Provisions. In addition to other provisions of
this Amendment, from and after the Effective Date, the following provisions of
the Lease shall be amended as set forth below:

 

(i)            Exhibit
A of the Lease shall be deleted and Exhibit A
attached to this Amendment shall be inserted in place thereof;

 

(ii)           Exhibit
B of the Lease is hereby deleted and Exhibit B
attached hereto is substituted in place thereof;

 

(iii)          The
term “Extension Term” as used in Section 6.1
(g) shall be deleted and the term “Second Extension Term”
shall be substituted in place thereof.

 

(iv)          For
all purposes of Section 10.2 of the Lease, provided Landlord is given full
access to and use of the proceeds of all insurance required to be carried by
Landlord and/or Tenant on the Tenant Improvement Work, Landlord’s restoration
obligations following a casualty to the Building shall include restoration of
the Tenant Improvement Work and the Base Building Work. Further,
notwithstanding anything in Section 10.3 of the Lease, Tenant shall be entitled
to recover from the condemning authority an amount equal to Tenant’s
unamortized costs expended by Tenant to perform the Tenant Improvement Work,
and moving and relocation costs, provided such costs do not reduce Landlord’s
award. Notwithstanding the foregoing in the event that the value of the Tenant
Improvement Work is included in a single payment to Landlord as a result of
such taking, then Landlord and Tenant shall allocate a fair portion of such
award allocable to the unamortized value of the Tenant Improvement Work on a pari passu basis based upon the respective
amounts paid by each of them for the Tenant Improvement Work, and Tenant’s
appropriate share thereof, as so allocated, shall be paid to Tenant.

 

(v)           The
term “Property” shall be substituted for the
term “Premises” wherever such term appears
in Section 14.4 of the Lease.

 

(vi)          The
following provisions of the Lease are inapplicable to the Extension Term and
are hereby deleted from the Lease in their entirety: The

 

8

 

definition of
Early Termination Option in Section 1.1, Sections 9.15, 15.1, 15.2
and 16.1, Exhibit 5.3, Exhibit 12.2 and Exhibit 15.1.

 

12.           Waiver
of Subrogation. From and after the Effective Date, Section 6.5 of the Lease
is deleted and the following new Section 6.5 is substituted in place thereof:

 

“Section
6.5.  Waiver of Claims; Waiver of
Subrogation. The parties hereto shall each procure an appropriate clause
in, or endorsement on, any property insurance policy on the Premises or any
personal property, fixtures or equipment located thereon or therein, pursuant
to which the insurer waives subrogation or consents to a waiver of right of
recovery in favor of either party, its respective agents or employees. Having
obtained such clauses and/or endorsements, each party hereby agrees that it
will not make any claim against or seek to recover from the other or its agents
or employees for any loss or damage to its property or the property of others
resulting from fire or other perils covered by such property insurance
regardless of the cause or origin of such loss or damage, including, but not
limited to, the negligence of such other party or its agents or employees.”

 

13.           Maintenance
of HVAC Units and Boiler/Relocation of Electrical Service.

 

(a)           From
and after the Substantial Completion of the Tenant Improvement Work, the fifth
(5th) sentence of Section 9.2 of the Lease shall be deleted and the following substituted
in place thereof. “Tenant shall be responsible for 100% of the cost for
maintenance, replacement or repair of those portions of the HVAC equipment and
systems solely serving the Premises. Tenant shall maintain, repair and/or
replace, at Tenant’s sole cost and expense, any HVAC equipment and systems
installed by Tenant in addition to the HVAC equipment and systems included as a
part of the Tenant Improvement Work and exclusively serving the Premises. All
manufacturer warranties on the portions of the HVAC system solely serving the Premises
shall be assigned or made available to, as applicable, the Tenant. The cost of maintenance,
replacement and/or repair of HVAC equipment and systems serving more than the Premises
(“Common HVAC”) shall be allocated as
Operating Expenses, subject to the limitations therefor set forth in Exhibit G.” Landlord shall have
control of and maintain, repair and replace the Common HVAC. References in the
Lease to specific HVAC equipment shall be deemed deleted as and when such
equipment is replaced and the eleventh (11th) and twelfth (12th) sentences of Section 9.2 are hereby deleted.

 

(b)           During
and as a part of Base Building Work, Landlord shall have the option of having
the existing electrical panel and service relocated from its current location shown
approximately on the Plan attached as Exhibit A (“Plan”)
as “Current Electrical Panel” to such other location upon which Landlord and
Tenant shall mutually agree. At such time as and if Landlord and Tenant shall
agree on an alternate location, then the Plan shall be amended accordingly.
During construction of the Tenant Improvement Work, Landlord shall have reasonable
access to the Retained Premises for the purpose of relocating the electrical
panel and the service supplying the same and for constructing the area shown as
“Area for Future Electrical Panel” on the Plan or to such other location as
Landlord and Tenant may mutually agree upon. From and after completion of the
Tenant Improvement Work, during the term of this Lease, Landlord and its
agents, contractors and representatives shall have the reasonable right of

 

9

 

reasonable access through the Retained
Premises to the area shown on the Plan (as the same may be amended consistent
with this paragraph) as “Area for Future Electric Panel”, for the purpose of
repairing, maintaining, replacing, modifying and expanding the electrical service
within the Area for Future Electrical Service.

 

14.           Landlord’s
Right of Entry. From and after the Effective Date, Section 9.6 of the Lease
is hereby deleted and the following new Section 9.6 shall be substituted in
place thereof:

 

“Section
9.6.  Landlord’s Right to Enter.
Tenant shall permit Landlord at reasonable times and upon reasonable prior
notice to Tenant (except in the event of an emergency, when no notice shall be
required) to enter into the Premises to examine the Premises, make such repairs
and replacements as Landlord may elect, without however, any obligation to do
so, and show the Premises to prospective purchasers and lenders, and, during
the last year of the Lease Term, to show the Premises to prospective tenants. Notwithstanding
the foregoing, Landlord shall not have the right to enter the laboratory areas
and animal facility located in the Premises except that upon at least one (1)
business day prior notice (which may be telephonic), Tenant will permit a
representative of Landlord at reasonable times to enter into the laboratory
areas and animal facility located in the Premises so long as such entry is at
all times in the presence of an authorized representative of Tenant. Tenant
shall make such tenant’s representative available on one (1) business day
notice. Landlord’s representative shall comply with all reasonable bio-security
or bio-safety requirements requested by Tenant in connection with entry into
and inspection of the bio-secure portions of Tenant’s laboratory.”

 

15.           Permitted
Holdover. From and after the Effective Date, the existing language of Section
9.12 shall become subparagraph (a) of Section 9.12 and the following
subparagraphs (b) and (c) shall be inserted at the end of Section 9.12:

 

“(b) Notwithstanding
the foregoing to the contrary, in the event that Tenant wishes to holdover in
the Premises for a period not to exceed three (3) months after the Term
Expiration Date (the “Requested Period”)
and so notifies Landlord in writing not less than ninety (90) days prior to the
Term Expiration Date (the “Holdover Request”),
Landlord shall grant Tenant permission to remain in possession of the Premises
during the Requested Period, in which case Tenant shall be deemed to be
occupying the Premises as a tenant for a term equal to the Requested Period
except that (1) Fixed Rent due under the Lease during each month of the
Requested Period shall be equal to 150% of the monthly Fixed Rent payable
during the last full month of the Lease Term then ending; (2) Tenant will be
liable to Landlord for all damages, excluding indirect or consequential damages
incurred by Landlord as a result of such permitted holdover in the Premises;
and (3) Tenant shall otherwise be subject to all of the conditions, provisions,
and obligations of this Lease, including without limitation, Tenant’s
obligation to pay Additional Rent and other charges due hereunder, prorated as
necessary or appropriate to make the same applicable to the Requested Period.
Tenant’s exposure for damages under clause (2) above in this subparagraph (b)
shall be limited to extra costs incurred by Landlord as a result of: (i) the
unavailability of the Premises for build-out of the Premises or any part
thereof for a replacement tenant on the scheduled termination date as a result
of Tenant’s holdover; or (ii) loss or damage incurred by Landlord if Landlord

 

10

 

is unable to
timely deliver the Premises to a new tenant as a result of Tenant’s holdover. Landlord
agrees to use commercially reasonable efforts to mitigate any such potential damages,
provided Tenant agrees to promptly, upon receipt by Tenant of a written request
therefor from Landlord, advance to Landlord any such out-of-pocket costs to Landlord
for such mitigation efforts. Landlord agrees, if requested in writing by Tenant
at any time earlier than 140 days prior to the scheduled term expiration date
of this Lease, to advise Tenant of whether or not Landlord would, if Tenant exercises
its holdover rights under this Section 9.12(b), as of the date of such request,
incur any damages or expense if Tenant exercises its holdover rights under this
Section 9.12(b). Nothing in Landlord’s response to such request shall limit
Landlord’s rights to pursue damages in accordance with and subject to the terms
of this Section 9.12. Landlord’s response to Tenant’s request shall be given no
later than five (5) business days after receipt of Tenant’s request. In
addition to the foregoing, Landlord agrees to give Tenant at least five (5)
business days written notice prior to signing a letter of intent, or its
equivalent, or a lease for all or any part of the Premises (“Landlord’s Proposed Lease Notice”), which notice will not
be delivered to Tenant earlier than twelve (12) months prior to the end of the
term of this Lease and such five (5) business day period shall commence to run
from the date such notice is received by Tenant.”

 

“(c)         Notwithstanding,
and in addition to, the foregoing, if (i) Landlord’s response to Tenant’s
request under paragraph (b) above is that Landlord will not incur any damages
if Tenant exercises its holdover rights as provided in this Section 9.12 and within
five (5) business days after Landlord’s response that it will not have any
damages Tenant exercises its holdover rights by notice to Landlord; or (ii)
Tenant exercises its holdover rights under this Section 9.12 within five (5)
business days after Tenant’s receipt of Landlord’s Proposed Lease Notice, then
Landlord shall not have the right to seek any damages and Tenant shall not be
liable to Landlord for any damages suffered by Landlord on account of Tenant’s
exercise of its holdover rights under this Section 9.12.”

 

16.           Signage.
Landlord hereby consents to Tenant’s existing interior and exterior signage
located in and on the Building and at the Property, including, without
limitation, Tenant’s monument signage, and Landlord agrees that Tenant shall
have, subject to compliance by Tenant with all requirements of applicable laws
and regulations, the right to all such signage throughout the Lease Term, as
the same may be extended, except that as part of the Tenant Improvement Work
and Base Building Work, the existing canopy sign will be removed.

 

17.           Utilities.
As part of the Tenant Improvement Work, Landlord shall use commercially
reasonable efforts to cause the Retained Premises to be separately metered and billed
for water, gas and electrical usage, and, following such metering, Tenant shall
pay directly to the provider of such utilities the costs of such utilities
consumed in the Retained Premises notwithstanding anything to the contrary in
Section 7 of the Lease. Any cost for such work will be part of the Project
Costs. In the event a utility provider will not or cannot separately meter and/or
bill a utility to Tenant, then Landlord will sub-meter each such non-separately
metered/billed utilities and Landlord will bill each sub-metered utility
directly to Tenant based on Tenant’s sub-metered use, without markup and Tenant
will pay for such sub-metered utility use as additional rent.

 

11

 

18.           Subordination
and Non-Disturbance. Section 12.2 of the Lease is hereby deleted in its
entirety and the following Section 12.2 is hereby substituted in place thereof.

 

“Section
12.2.  Subordination of Lease and
Non-Disturbance of Tenant.

 

“(a)         Subject
to the provisions of paragraph (b) below of this Section 12.2, this Lease and
any extensions, renewals, replacements or modifications thereof are and shall at
all times be and remain subject and subordinate to the lien of any mortgage,
deed of trust and all other security documents now or hereafter securing
payment of any indebtedness of Landlord with respect to the Premises, ground
lease or underlying lease now or hereafter in force against the Premises, and
to all advances made or hereafter to be made upon the security thereof and to
any increases, renewals, modifications, substitutions, replacements,
consolidations and extensions thereof. Although the foregoing subordination
shall be self-effectuating, Tenant shall execute and return to Landlord any
documentation reasonably requested by Landlord consistent with this Section
12.2 in order to confirm the foregoing subordination, within ten (10) business days
after Landlord’s written request. In the event any proceedings are brought for foreclosure,
or in the event of the exercise of the power of sale under any mortgage or deed
of trust made by Landlord covering the Premises, Tenant shall attorn to the purchaser
at any such foreclosure, or to the grantee of a deed in lieu of foreclosure,
and recognize such purchaser or grantee as Landlord under this Lease, provided
such purchaser assumes, either expressly or by operation of law, the
obligations of Landlord arising under this Lease after the date title to the
Premises is transferred to such purchaser or grantee. Any such mortgagee shall
have the right, at any time, to subordinate to this Lease any instrument to
which this Lease is otherwise subordinated by operation of this Section 12.2 by
delivery of written notice of such subordination to Tenant.

 

(b)           Landlord
represents that there is no ground lease or other lease superior to this Lease
in effect with respect to the Property or the Premises. Notwithstanding the provisions
of paragraph (a) above of this Section 12.2 to the contrary, the subordination of
this Lease to any future mortgage (or ground lease) shall be conditioned upon
the delivery to Tenant of a “Subordination, Non-Disturbance and Attornment
Agreement.” (“SNDA”) executed by it as the
holder, mortgagee or lessor of such mortgage or ground lease of the Property
substantially in the form attached as Exhibit D
or such other form as the lender may reasonably require but which will provide
to Tenant the protections listed below in this paragraph (b) from such future
mortgagee (or ground lessor), but without requiring unreasonable waiver of
rights or claims by Tenant. Any such SNDA shall provide, inter alia, that so
long as Tenant is not in default hereunder (beyond any applicable notice and
cure period) and attorns to such mortgagee (or ground lessor) or any
successor-in-title thereto due to a foreclosure or deed-in-lieu thereof (or a
termination of such ground lease), Tenant’s rights under this Lease, including
its right of possession of the Premises, shall not be disturbed in the event of
a foreclosure of such mortgage or deed of trust (or a termination of such
ground lease) and, until the Tenant Improvement Work has been completed,
agreeing to recognize and honor, in the event it takes possession of or
forecloses on the Building, the Landlord’s obligation to fund the theretofore
unfunded Landlord’s Contribution to the Tenant Improvement Work.”

 

12

 

(c)           No
later than January 31, 2006, Landlord shall either: (i) deliver to Tenant an SNDA
in accordance with subsection (b) of this Section 12.2 from the current
mortgage holder(s) of the Premises; or (ii) refinance the existing mortgage on
the Property and deliver to Tenant from the new lender an SNDA in accordance
with subsection 12.2(b) above. In the event Landlord fails to provide such SNDA
in accordance with this subsection 12.2(c) on or before January 31, 2006,
Tenant shall have the right, by written notice to terminate this Amendment as
of a date specified in such notice, which date shall be no sooner than thirty
(30) days after the date such notice is given, unless Landlord, prior to the
date specified in such notice, delivers the required SNDA, and upon such termination,
Landlord shall reimburse to Tenant the amounts theretofore paid by Tenant for
design and preparation of Space Plan and Construction Documents for the Tenant Improvement
Work in accordance with Exhibit C
to this First Amendment to Lease. Notwithstanding anything in the First
Amendment to Lease to the contrary, including Exhibit C
thereto, in no event will Tenant be obligated to make any further payment of Tenant’s
Contribution towards the Tenant Improvement Work unless and until Landlord delivers
the SNDA required under this Section 12.2(c).” If Landlord fails or is unable
to provide the SNDA on or before January 31, 2006, then Landlord may terminate
this Amendment by written notice to Tenant, and upon such termination, Landlord
shall reimburse to Tenant the amounts theretofore paid by Tenant for design and
preparation of Space Plan and Construction Documents for the Tenant Improvement
Work in accordance with Exhibit C
to this First Amendment to Lease.

 

(d)           Simultaneously
with the delivery of the SNDA Tenant will pay to Landlord any and all deferred
Tenant Improvement Work payments advanced by Landlord on behalf of Tenant,
subject to the conditions and receipt of documents required for such payments
set forth in Exhibit C to this Amendment.

 

19.           Notice
of Lease. Landlord and Tenant shall, simultaneously with their execution and
delivery of this Amendment, execute and deliver a Notice of Lease in
substantially the form attached hereto as Exhibit E.

 

20.           Surrender.
For purposes of the Lease as amended hereby all references in the Lease to “Exhibit
D” shall hereafter be deemed to mean Exhibit B
attached to this Amendment. The Terminated Premises may not be surrendered by
Tenant and Landlord shall not be required to accept surrender of the Terminated
Premises until Tenant shall have vacated the same and removed all of its
personal property and fixtures, furnishings and equipment as required under this
Agreement and removed any Hazardous Materials placed or released upon or about
the Premises by Tenant, T Cell or any party entering upon or about the Premises
as an employee, invitee, customer, sales person, guest, contractor, agent or
representative of, or acting by, through or under Tenant or T Cell, including,
without limitation, biological or chemical materials as required by applied law
without variance, restriction or limitation to the Terminated Premises.

 

21.           Common
Access Area in Retained Premises. Notwithstanding the calculation of the
rentable area of the Retained Premise and the description thereof on Exhibit A to this Amendment,
Landlord acknowledges that Landlord, its agents, employees, contractors,
invitees,

 

13

 

visitors and tenants will continue to have
non-exclusive access to and use in common with Tenant the areas of the Retained
Premises cross-hatched and shown on Exhibit A
as “Common Access Areas.” Landlord shall
indemnify, defend and hold Tenant and Tenant’s partners, members, shareholders,
officers, directors, managers, employees, agents and contractors harmless from
and against all claims, losses, cost, damages, liability or expenses of
whatever nature arising from any accident, injury or damage whatsoever to any
person, or to the property of any person, occurring in or about the Common
Access Areas to the extent caused by the negligence or willful misconduct of
Landlord or Landlord’s agents, employees or contractors. Tenant shall maintain
property insurance and comprehensive general liability insurance on its use,
and the use of its agents, contractors or employees, of the Common Access Areas
as a part of the insurance on the Retained Premises. Notwithstanding anything
contained in this Paragraph 21 to the contrary, Landlord will maintain
comprehensive general liability insurance on and covering the use of the Common
Access Areas by those entitled to the use thereof, other than Tenant or Tenant’s
employees, agents or contractors. Landlord and Tenant shall each indemnify and
hold harmless the other to the extent of any claim not covered by insurance in connection
with: (a) in the case of Landlord’s indemnification of Tenant, the use of the Common
Access Areas by any party other than Tenant and those claiming by, through or
under Tenant, and (b) in the case of Tenant’s indemnification of Landlord, the
use of the Common Access Areas by Tenant and those claiming by, through or
under Tenant. With respect to the use of the Common Access Areas by those other
than Tenant, Landlord’s insurance shall be primary. Landlord covenants and
agrees that Landlord shall, at all times during the Term, be responsible to
clean, repair and maintain such Common Access Areas to the extent of any damage
or debris as a result of the use of the same by any party other than Tenant and
its contractors, agents and employees. Tenant shall be responsible for securing
the balance of the Retained Premises from the Common Access Areas.

 

22.           Brokerage.
Landlord and Tenant each represent and warrant to the other that neither of
them has employed or dealt with any broker, agent or finder in carrying on the negotiations
relating to this Amendment to the Lease other than affiliates of Landlord and
Equis Corp. (the “Brokers”). Landlord shall pay a
commission to the Brokers pursuant to a separate agreement. Tenant shall
indemnify and hold Landlord harmless from and against any claim or claims for
brokerage or other commissions relating to this Amendment asserted by any
broker, agent or finder engaged by Tenant or with whom Tenant has dealt other
than the Brokers. Landlord shall indemnify and hold Tenant harmless from and
against any claim or claims for brokerage or other commissions relating to this
Amendment asserted by any broker, agent or finder engaged by Landlord or with
whom Landlord has dealt.

 

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

 

24.           Governing
Law; Interpretation and Partial Invalidity. This Amendment shall be governed
and construed in accordance with the laws of the Commonwealth of Massachusetts.
If any term of this Amendment, or the application thereof to any person or
circumstances, shall to

 

14

 

any extent be invalid or unenforceable, the
remainder of this Amendment, or the application of such term to persons or
circumstances other than those as to which it is invalid or unenforceable, shall
not be affected thereby, and each term of this Amendment shall be valid and
enforceable to the fullest extent permitted by law. The titles for the
paragraphs are for convenience only and not to be considered in construing this
Amendment. This Amendment contains all of the agreements of the parties with
respect to the subject matter hereof, and supersedes all prior dealings between
them with respect to such subject matter. No delay or omission on the part of either
party to this Amendment in requiring performance by the other party or
exercising any right hereunder shall operate as a waiver of any provision hereof
or any rights hereunder, and no waiver, omission or delay in requiring
performance or exercising any right hereunder on any one occasion shall be
construed as a bar to or waiver of such performance or right on any future occasion.

 

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

 

26.           Cooperation
with Project. Tenant agrees to cooperate with Landlord as necessary to
accommodate the construction of the Project, as defined in Exhibit C.
Tenant further acknowledges and agrees that dust, noise, vibration, temporary
closures of common areas, or other inconvenience or annoyance resulting from
the construction of the work shall not be deemed to be a breach of Landlord’s
obligations under the Lease or create any liability of Landlord to Tenant for
such inconvenience or annoyance, so long as Landlord shall use reasonable
efforts, consistent with accepted construction practice, to avoid unreasonably
interfering with the conduct of Tenant’s business at the Premises. Tenant
shall, at no cost to Tenant, support and neither directly or indirectly oppose
nor object to Landlord’s permit applications to the Town of Needham relating to
the Property or Landlord’s affiliates adjoining property at 53-83 Fourth Avenue
with respect to the addition of parking to the Property from the adjoining
property, the Base Building Work (except for the exercise of any of Tenant’s
rights under Exhibit C), the Tenant
Improvement Work (except for the exercise of any of Tenant’s rights under Exhibit C and the buildout and leasing
of the Terminated Premises

 

[Signatures
commence on following page.]

 

15

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DIV NEEDHAM 115 LLC

  
	
   

  	
  By:

  	
  Fourth Avenue Ventures Limited Partnership, its Manager

  
	
   

  	
   

  	
  By:    Cendav Investment Corp., its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan G. Davis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan G. Davis

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  AVANT IMMUNOTHERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Una S. Ryan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Una S. Ryan, PhD

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President and CEO

  	
   

  
									

 

16

 

List of Exhibits

 

	
  Exhibit A

  	
  -

  	
  Plan of
  Retained Premises

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
  -

  	
  Real
  Property Description

  
	
   

  	
   

  	
   

  
	
  Exhibit A-2

  	
  -

  	
  Plan of
  Reserved Parking Spaces

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  List of
  Existing Equipment

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Base
  Building and Tenant Improvement Work Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit C-1

  	
  -

  	
  Space Plan

  
	
   

  	
   

  	
   

  
	
  Exhibit C-2

  	
  -

  	
  Phasing
  Schedule

  
	
   

  	
   

  	
   

  
	
  Exhibit C-3

  	
  -

  	
  Budget

  
	
   

  	
   

  	
   

  
	
  Exhibit C-4

  	
  -

  	
  Base
  Building Specification

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Form of
  Subordination, Non-Disturbance and Attornment Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Form of
  Notice of Lease

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Intentionally
  Omitted

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Operating
  Expense Exclusions

  

 

 

EXHIBIT A

PLAN OF RETAINED PREMISES

 

[Floor Plan]

 

 

EXHIBIT A-1

REAL PROPERTY DESCRIPTION

 

 

Exhibit A-
1

 

Property Description

 

LOTS 12 and 13

 

The land with
the buildings and other improvements thereon situated in the Town of Needham,
County of Norfolk and Commonwealth of Massachusetts, known as and numbered 115-119
Fourth Avenue (“Lot 12 and 13”) described as follows:

 

Beginning at
the Northeasterly corner of lot 13 at Fourth Avenue thence:

 

S 35°-01'-52"
E Four hundred and thirty-six and 00/100 Feet (436.00'), by two (2) courses;
the first course measuring One hundred sixty-six, and 46/100 (166.46') feet and
the second course measuring Two hundred sixty-nine and 54/100 (269.54') feet

 

S 54°-58'-08"
W Three hundred and seventy five and 00/100 Feet (375.00')

 

N 35°-01'-52"
W One hundred and fifty four and 27/100 Feet (154.27')

 

N 25°-50'-13"
W Two hundred eighty-five and 48/100 Feet (285.48'), by two (2) courses; the
first course measuring One Hundred sixteen and 85/100 (116.85') feet, and the second
course measuring One hundred sixty-eight and 63/100 (168.63') feet

 

N 54°-58'-08"
E Three hundred and twenty nine and 39/100 Feet (329.39') to the point of beginning.

 

Lots 12 and 13
are shown on a plan drawn by Cheney Engineering Co. Inc., Surveyors, dated
December 8, 1965, as approved by the Land Court, filed in the
Land Court as No. 29185C, a copy of a portion of which is filed with the Land
Court with Certificate No. 86939, Page 435.

 

 

EXHIBIT A-2

PLAN OF RESERVED PARKING SPACES

 

[Drawing]

 

 

EXHIBIT B

LIST OF EXISTING EQUIPMENT

 

[Table]

 

 

EXHIBIT C

BASE
BUILDING AND

TENANT
IMPROVEMENT WORK AGREEMENT

1.             DEFINED
TERMS

 

The
terminology herein shall have the same meaning ascribed to such terminology
within the Lease. In addition, the following terms shall have the following
meanings:

 

“Base Building Work” shall mean the
improvements and other alterations substantially as set forth in the attached
design specification labeled Exhibit C-4 and shown on the Base Building Plans
for the construction of the core base building upgrades and improvements in and
to the Building.

 

“Base Building Plans” shall mean the
final, permit set of plans and specifications for the Base Building Work.
Landlord agrees to include Tenant in the process of the preparation of the Base
Building Plans and to consider and discuss with Tenant any reasonable
recommendations by Tenant without any obligation of Landlord to incorporate the
same. Once Base Building Plans have been finalized, Landlord will not make any
material changes to Base Building Plans which would adversely impact Tenant’s
access to and egress from the Premises without Tenant’s written approval which
Tenant will not unreasonably withhold, condition or delay.

 

“Change Order” shall have the
meaning set forth in Paragraph 2C below.

 

“Construction Documents” shall mean
the final Building Permit set of plans and specifications for the Tenant
Improvement Work, as approved (and/or deemed approved) by Landlord and Tenant,
as the same may be modified (i) by Change Orders, and/or (ii) to meet the requirements
of the local building permit granting authority and comply with local by-laws
and state building code for obtaining the issuance of Town of Needham building
permits or other local approvals for the Tenant Improvement Work, provided  any material modifications to the approved
Construction Documents required by a local building permit authority for the
issuance of a building or other Town of Needham zoning or building permit
required to perform the Tenant Improvement Work which will affect Tenant’s use
and/or occupation of the Retained Premises in any material adverse respect
shall be subject to the prior approval of Landlord and Tenant, which shall not
be unreasonably withheld or delayed. Special build out and permits for Tenant’s
research and lab use shall be excluded from permits for Construction Documents.

 

“Construction Manager” shall mean
Davis Investment Ventures, Inc., a Massachusetts corporation, or an unrelated
responsible third party retained by Landlord on an arms-length basis to act as
project/construction manager for Base Building Work and/or Tenant Improvement Work.

 

“Estimate of Total Costs” shall mean
the estimated and budgeted costs for the Tenant Improvement Work set forth in Exhibit C-3 attached hereto and defined
as the “Budget” in Section 3 of this Exhibit C.

 

“Force Majeure Delay(s)” shall mean
delay in the Substantial Completion of the Tenant Improvement Work occasioned
by strikes, fire, severe and unusual weather, the inability to

 

 

procure necessary labor or materials and for
any other reason beyond the reasonable control of Landlord. Landlord shall use
reasonable efforts to avoid and/or shorten the length of any Force Majeure
Delay. Landlord shall have no basis for any claim of Force Majeure Delay unless
and until Landlord has provided Tenant written notice of any Force Majeure
Delay within five (5) business days after Landlord determines that it intends
to claim an extension of substantial completion of the Tenant Improvement Work
on account of such Force Majeure Delay.

 

“GMP” shall mean the cost of the
Tenant Improvement Work under the GMP Contract.

 

“GMP Contract” shall mean the
construction contract entered into between Landlord and the GMP Contractor on
the basis of a guaranteed maximum price for the performance of the Tenant
Improvement Work. Unless Tenant signs as the “Owner”
for purposes of the GMP Contract, the GMP Contract will contain a provision
conditionally assigning to Tenant in the event of Landlord’s default and
entitling Tenant to assume Landlord’s rights and obligations as Owner in the
event Landlord defaults in its obligations to complete the Tenant Improvement Work
as set forth in Section 5 of this Exhibit C.
Such rights shall be subject and subordinate to Landlord’s lender’s rights to
assume and perform the GMP Contract.

 

“GMP Contractor” means the general
contractor selected by Landlord to perform the Base Building and Tenant
Improvement Work. See Section 3(a) of this Exhibit C
for Landlord’s initial selection of the GMP Contractor.

 

“Phasing Schedule” shall mean that
schedule attached hereto as Exhibit C-2
which sets forth milestones with respect to the obligations of Landlord and
Tenant regarding the development and completion of the Construction Documents,
the negotiation, approval and execution of the contract with the GMP Contractor
for the performance by Landlord of the applicable phases of the Base Building
Work and the Tenant Improvement Work, the preparation, review, approval and
completion of the final plans and specifications for the Tenant Improvement
Work and the Base Building Plans, the dates on which Tenant shall temporarily vacate
and surrender portions of the Original Premises in accordance with the
provisions of this Agreement in order for Landlord to be able to perform the
Base Building Work and Tenant Improvement Work and the construction and
installation of the Base Building Work and the Tenant Improvement Work.
Landlord and Tenant agree to cooperate with one another in the performance of
their respective obligations under the Phasing Schedule. The parties shall cooperate
to update the dates set forth in the Phasing Schedule from time to time in
order to account for actual events and permitted delays during the performance
of the Tenant Improvement Work.

 

“Premises Delivery Date” shall mean
the date upon which the Tenant Improvement Work is Substantially Completed.

 

“Project” shall mean the Tenant
Improvement Work and the Base Building Work.

 

“Punch List Items” The term “Punch
List Items” shall mean details of construction, fixtures, finishes, decoration
and mechanical adjustment which, in the aggregate, are minor in character and
do not materially interfere with Tenant’s use or enjoyment of the Retained

 

C-2

 

Premises and completion of which after Tenant
is in occupancy of the Premises will not unreasonably interfere with Tenant’s
operations therein.

 

“Space Plan” shall mean the initial
space plan for the Tenant Improvement Work to be performed in the Retained
Premises and approved by the parties prior to the Effective Date, a copy of
which is attached as Exhibit C-1
to this Exhibit C.

 

“Substantial Completion of the Base Building Work”
and phrases of a similar nature shall mean the Base Building Work shall have
been completed in accordance with the Base Building Plans other than Punch List
Items and Landlord has obtained all final governmental inspection and other
approvals with regard to the Base Building Work.

 

“Substantial Completion of the Tenant Improvement
Work” and phrases of a similar nature shall mean (1) the Tenant
Improvement Work shall have been completed in accordance with the Construction
Documents, other than Punch List Items which will not unreasonably interfere
with Tenant’s ability to lawfully occupy the Retained Premises and completion
of which will not unreasonably interfere with Tenant’s business operations in
the Retained Premises; and (2) Landlord has obtained a Temporary or Permanent
Certificate of Occupancy or its equivalent with regard to the Tenant
Improvement Work for which Landlord is responsible which are necessary to
permit Tenant to lawfully use and occupy and to continue to use and occupy the
Retained Premises for their permitted uses under this Lease; provided, however,
if the Landlord would have received a Certificate of Occupancy but for
incomplete work to be performed by Tenant then Substantial Completion of the
Tenant Improvement Work shall be deemed achieved.

 

“Tenant Delay(s)” shall mean any
actual delay in the Substantial Completion of the Tenant Improvement Work which
is directly attributable to (i) the actions, omissions or interference of
Tenant or Tenant’s agents, contractors or employees with respect to any aspect
of the design, permitting and/or performance of the Tenant Improvement Work,
(ii) any delay by Tenant in the review and approval of any Construction
Documents submitted to it for review and/or approval, (iii) any delay
occasioned by a Change Order requested by Tenant provided Tenant is notified by
Landlord prior to acceptance of such Change Order of the estimated amount of
Tenant Delay to result from such Change Order, (iv) any breach of the Lease (including
this Exhibit C) by Tenant, (v) any long
lead time items of which Tenant has received prior notice of the estimated amount
of the Tenant Delay from such items and elects to proceed in spite thereof, and
which causes actual delay in Substantial Completion of the Tenant Improvement
Work, and (vi) any failure, for whatever reason, except where such failure
shall be as a result of Landlord’s inappropriate actions, of Tenant to meet the
time requirements of the Phasing Schedule. In calculating the duration of any
Tenant Delay, such duration shall be based upon the actual number of days of
delay in the Substantial Completion of the Tenant Improvement Work attributable
to the causes described above. Landlord shall notify Tenant of any delays
occasioned by a Tenant Delay within five (5) business days after Landlord
becomes aware that it intends to claim an extension of the date for substantial
completion of the Tenant Improvement Work on account of such Tenant Delay;
provided, however, Landlord agrees to exercise commercially reasonable efforts
to immediately notify Tenant of any act, omission or interference of Tenant,
its agents, employees or contractors in the performance of the Tenant Improvement
Work which Landlord intends to claim as a Tenant Delay so as to permit Tenant a

 

C-3

 

reasonable opportunity to promptly mitigate
and/or eliminate such act, omission or interference. Tenant Delays shall not
include the normal and ordinary process of communication between Landlord and
Tenant during the design and construction process or the exercise by Tenant of
its rights under this Exhibit C
to inspect the work on a timely basis and/or to have M&F dispute the achievement
of Substantial Completion of the Tenant Improvement Work.

 

“Tenant Improvement Allowance” shall
mean an amount up to Three Million Six Hundred Thousand and 00/100 Dollars ($3,600,000.00).

 

“Tenant Improvement Work” shall mean
the improvements and other alterations shown on the Construction Documents for
the improvements to be performed in the Retained Premises.

 

“Tenant’s Representative” shall mean
Avery “Chip” Catlin, or any other representative appointed by Tenant. Tenant’s
Representative shall have the power to bind Tenant with respect to all matters
arising under this Exhibit C.
Tenant has also retained (i) Margolis & Fishman, Inc. (“M&F”) for architectural services; and (ii) AHA
Consulting Engineers, Inc. (“AHA”) for mechanical,
plumbing, electrical, and fire protection services (“MEPFP”),
as consultants to Tenant (but without power to bind Tenant) and Landlord hereby
approves of M&F and AHA as Tenant’s consultants. M&F is also referred
to herein as the “Project Architect”.

 

“Total Costs” are defined in Section
4 below.

 

2.             REPARATION
OF PLANS AND SPECIFICATIONS

 

(a)           Tenant
Improvement Work. Tenant has retained and will continue to retain M&F and
AHA for design, architectural and MEPFP services for Tenant Improvement Work. Landlord
has retained and will continue to retain M&F and AHA for design,
architectural and MEPFP services for Base Building Work. If either Landlord or
Tenant wishes to change such service providers, they shall do so only by mutual
agreement which each party agrees, for good cause, shall not be unreasonably
withheld, conditioned or delayed. Tenant is currently having the Construction
Documents for the interior finish and other tenant improvements to the Retained
Premises prepared in accordance with: (i) the Space Plan (as defined above in
this Exhibit C-1); and (ii) information
provided to the architect, M&F, or engineer, AHA. Tenant agrees to design
the laboratory portions of the Retained Premises, exclusive of the animal research
facility, office and other non-laboratory portions of the Retained Premises and
except as otherwise consented to by Landlord, such that the laboratory areas
will be generally re-usable by other laboratory users. Tenant shall prepare or
cause the final Construction Documents to be prepared by M&F and AHA and
will submit the same to Landlord for Landlord’s review and approval no later
than ninety (90) days after the date of this Amendment, subject to delays due
to Force Majeure. As soon as practicable after receipt of the proposed
Construction Documents but in no event more than five (5) business days after
receipt thereof, Landlord shall return the proposed Construction Documents to
Tenant with Landlord’s suggested modifications and/or approval noted thereon.
If, upon receipt of the Landlord’s suggested modifications to the Construction
Documents, if any, Tenant wishes to take exception to Landlord’s modifications,
Tenant may do so within five (5) business days after the date upon which Tenant
receives Landlord’s modifications to the Construction Documents. Landlord and
Tenant shall negotiate

 

C-4

 

in good faith to promptly resolve any
disagreements and make modifications to the Construction Documents which are
acceptable to Landlord and Tenant. The parties shall attempt to reach agreement
as soon as possible, and in all events within ten (10) business days after the
date upon which Tenant receives Landlord’s proposed modifications to the
Construction Documents. Upon resolution of any issues, Tenant shall revise the
Construction Documents to reflect the applicable changes, and the same shall be
resubmitted to Landlord for final approval within seven (7) business days after
resolution of any issues and Landlord shall grant its approval or disapproval thereto,
and/or state any further objections or proposed modifications, within three (3)
business days after receipt thereof. After the first submission and
resubmission, Landlord and Tenant agree to restrict further objections or
disputes only to matters which have been previously raised but not previously
been agreed upon or accepted by the other party. The parties shall, in all events,
act with due diligence and in good faith and use all reasonable efforts to
reach agreement as soon as possible, and in all events within twenty (20)
business days after the date upon which Tenant first receives the applicable
modifications from Landlord which are in issue. The process of submissions and
resubmissions shall continue thereafter until final agreement is reached, and in
such process, the parties shall thereafter adhere to the three (3) business day
response time required after the second resubmission. Each party agrees that
its failure to respond to a submission or resubmission within the
above-referenced time frames shall constitute such party’s acceptance of the
submission or resubmission in question. Upon Landlord and Tenant’s final approval
of the Construction Documents, the same shall constitute the “Construction Documents.” The work shown on the Construction
Documents shall be deemed the “Tenant Improvement Work”
unless otherwise noted thereon. At the times set forth for obtaining varying
phases of building permits in the Phasing Schedule and following final approval
of the Construction Documents, Landlord agrees to have the GMP Contractor apply
to the Town of Needham Building Department for a building permit for the
construction of the Tenant Improvement Work and upon issuance thereof, to
cause, subject to Tenant’s payment for the portions thereof for which Tenant is
responsible, the Tenant Improvement Work to be completed, installed or
performed, as the case may be, in accordance therewith, subject only to minor
variations and/or variations necessitated by the unavailability of specified
materials and equipment in accordance with the Construction Documents. Except
as above provided, no deviation from the Construction Documents shall be made
by either party except by written Change Order approved by the other party,
which approval shall not be unreasonably withheld, conditioned or delayed.

 

(b)           Base
Building Work. Landlord is currently having the Base Building Plans for the
Base Building Work prepared in accordance with the design specifications previously
delivered to Tenant for review. Landlord shall prepare or cause to be prepared
by an architect licensed in the Commonwealth of Massachusetts, the Base
Building Plans and submit the same to Tenant and Tenant’s Representative at
appropriate intervals during the design process for Tenant’s review and comment
in accordance with the provisions of the definition of “Base
Building Plans”.

 

(c)           Change
Orders. Tenant may request changes in the Construction Documents (“Change Order”) from time to time by
giving Landlord written notice thereof in each instance, and in each such event
Landlord shall, promptly following receipt of written notice thereof from Tenant,
submit to Tenant a written detailed estimate of the cost of such Change Order
and whether the Change Order will constitute a Tenant Delay. Tenant shall
advise Landlord in

 

C-5

 

writing within five (5) business days after
receipt of such estimate whether it shall elect to proceed with the Change
Order. Failure by Tenant to notify Landlord within this five (5) business day
period (subject to extension by mutual agreement) shall be deemed to be disapproval
by Tenant of the Change Order.

 

3.             BID
PROCESS

 

(a)           Landlord
and Tenant have prepared the Budget for the Tenant Improvement Work attached
hereto as Exhibit C-3 (the “Budget”). Except to the extent not practicable due to specialization
of the work and limitations on the number of contractors in the field
performing such specialized work, with respect to all major sub-trades,
Landlord shall cause the GMP Contractor to solicit bids for performance of the
Tenant Improvement Work from at least three (3) licensed subcontractors and in
substantial accordance with the Budget. If Landlord or the GMP Contractor, as
applicable, solicits or is required to solicit bids from subcontractors for
such subcontractors to perform both the Base Building Work and the Tenant
Improvement Work, Landlord or the GMP Contractor, as applicable, shall require
that such subcontractors submit separate and distinct bids for their respective
portions of each of the Base Building Work and the Tenant Improvement Work. In
addition, Landlord covenants that the contracts (Base Building Work and Tenant
Improvement Work and the respective subcontracts thereunder) entered into between
Landlord and the GMP Contractor shall be on substantially the same terms and conditions,
including, without limitation, pricing of materials and rates for general
conditions and contractors’ fees. Tenant may, in its sole discretion, require
subcontractors to provide unit prices for certain items or services in their
respective bids. When bids are solicited, upon the receipt of bids from each of
the subcontractors, Landlord or the GMP Contractor shall prepare a bid format
which compares each bid, and shall deliver such bid format, together with
copies of the bids themselves to Tenant (together with Landlord’s designation
of the bid Landlord intends to accept). All documentation prepared by Landlord
or others on its behalf and/or submitted by contractors, subcontractors,
vendors, suppliers or others for the Tenant Improvement Work shall be provided
to Tenant’s Representative promptly after receipt of same by Landlord,
including, without limitation, bid proposals, bid packages, architectural,
design, engineering, earthwork, geotechnical and surveys, as applicable. Tenant
shall have the right to review all bid packages and to participate with
Landlord in the award of the GMP Contract for the Tenant Improvement Work.
Landlord has retained C.E. Floyd as its contractor for pre-construction
services on both Base Building Work and Tenant Improvement Work and intends to
retain C. E. Floyd for construction as well. Tenant approves C. E. Floyd as the
GMP Contractor. Any change in the selection of the GMP Contractor to perform
the Tenant Improvement Work shall be made by Landlord, subject to Tenant’s
approval (which shall not be unreasonably withheld conditioned or delayed),
provided Landlord shall select the lowest responsible and qualified bidder
which is able to meet the timing requirements set forth in this Amendment
unless Tenant and Landlord agree to select another bidder. If Tenant has not
responded to Landlord’s request for approval within five (5) business days, the
same shall, at Landlord’s election, be deemed to constitute Tenant’s approval
of Landlord’s recommended selection. The bids selected and the GMP Contract
entered into by Landlord and the GMP Contractor for the Tenant Improvement Work
shall be upon the basis of a guaranteed maximum price. The GMP Contract for the
Tenant Improvement Work shall be subject to Tenant’s review and approval which
shall not be unreasonably withheld, conditioned or delayed provided the total
GMP is consistent with the Budget and Landlord and GMP Contractor may not amend
such GMP Contract in any material

 

C-6

 

manner without Tenant’s prior written
consent. If the GMP is not consistent with the Budget, Tenant shall have ten
(10) business days to review the GMP Contract and to modify the Construction
Documents so that the GMP is satisfactory to Tenant and meets the Budget. If
the final GMP Contract approved by the Tenant exceeds the Budget ten the Budget
will be modified accordingly. Landlord may, without Tenant’s approval,
substitute materials of equal or better quality for materials which meet the
Project design intent called for in the Construction Documents. A decrease in
the quality of materials or an increase in the GMP Contract price other than by
Tenant approved Change Order shall be deemed material.

 

(b)           Landlord
agrees to cause the GMP Contractor (or each bidding subcontractor) to identify
“long lead” items or materials which will delay substantial completion of the
Tenant Improvement Work beyond the outside dates contemplated in the Phasing
Schedule, as such dates may be modified from time to time by the parties or
extended as a result of permitted delays, and shall notify Tenant of the same
promptly after such identification can be made. Landlord and Tenant shall
cooperate in good faith to integrate “long lead” items or materials into the
Phasing Schedule. If the lowest responsible and qualified bidder is to be
selected pursuant to the foregoing and such bid is for a subcontract amount in
excess of the line item for such subcontract in the Budget, Tenant shall have
the right, within three (3) Business Days following the date of Landlord’s
selection of the bid, to submit revisions to the Construction Documents for review
and approval by Landlord. Upon Landlord’s approval of Tenant’s revisions,
Landlord shall seek and obtain revised bids to be reviewed and selected in
accordance with the procedures and the time frames set forth in this Exhibit C.

 

(c)           If
Landlord and Tenant are unable, after the exercise of good faith efforts, to
agree upon the Construction Documents, the selection of the GMP Contractor, if
other than C. E. Floyd or the GMP Contract, within one hundred eighty (180)
days after the Effective Date, either party may elect by notice to the other
party delivered within ten (10) days following expiration of such one hundred
eighty (180) day period but prior to agreement of the parties on the matter for
which the parties had previously failed to agree to submit any disputes or
disagreement to binding arbitration. Landlord and Tenant shall conduct and
complete the arbitration within thirty (30) days with three (3) arbitrators
knowledgeable in commercial construction of the type to be provided to Tenant.
Tenant and Landlord shall each promptly select an arbitrator who shall together
select a third arbitrator also knowledgeable in commercial construction, which
three arbitrators who shall then resolve the issue. Costs of arbitration shall
be shared as follows: Landlord and Tenant shall each pay their selected
arbitrators and shall share equally the cost of the third arbitrator.

 

(d)           If
Landlord is unable to obtain from the Town of Needham the building permits and
other governmental authorizations to perform the Tenant Improvement Work within
six (6) months following the date of final approval of the Construction
Documents, either party may elect to terminate this Amendment by delivery of
written notice to the other party delivered within ten (10) days following
expiration of such six (6) month period. Landlord and Tenant shall cooperate
with each other to the extent reasonably necessary for either party to obtain necessary
permits and approvals.

 

C-7

 

4.             TOTAL
COSTS/ALLOWANCE

 

(a)           Total Costs or Project Costs: The
term “Total Costs” shall mean the out-of-pocket
costs and expenses actually incurred and required to be paid to third parties
in designing, engineering, producing Construction Documents and “as-built”
plans, Landlords Financing costs for Landlord’s percentage share of the Total
Costs in an amount not to exceed $175,000.00, obtaining required permits and
approvals for the Tenant Improvement Work, project legal fees in connection
with the GMP Contract and construction issues related to the Tenant Improvement
Work in an amount not to exceed $45,000.00, construction management and
administration to the Construction Manager, which shall not exceed the actual
employee and out-of-pocket costs incurred by the GMP Contractor in managing and
administering the Tenant Improvement Work, including normal allocation to
employee benefits at commercially reasonable rates, insurance, but only to the
extent clearly allocable (and documented as such) to the Tenant Improvement Work,
a contingency fee for normal and customary contingency items for such jobs
including, without limitation, correction of non-conforming work, warranty
items, bonding of completion and such other items as are included in such
construction contracts and constructing the Tenant Improvement Work and which
are identified in the Budget plus approved Change Orders, but exclusive of any
costs identified in this Section 4 as being excluded from Total Costs. For the purposes
of this sentence, Landlord Parties (defined below) shall be considered third
parties if they are providing services, which, but for the Landlord’s affiliate
providing the same, would have to be provided by another and the cost of such
services are at prices consistent with those sums which would be paid to an
unrelated, responsible third parry for performing such services or materials.
The only Landlord Party entitled to receive any payment in connection with the Tenant
Improvement Work is the Construction Manager. Notwithstanding anything to the contrary,
the term Total Costs shall not include:

 

(1)           Costs
resulting from the gross negligence, willful misconduct or breach of this
Amendment by Landlord, its agents or employees,

 

(2)           Costs
resulting from the gross negligence or willful misconduct of the GMP Contractor
or any other contractors engaged to perform the Tenant Improvement Work, costs
to correct nonconforming work performed during construction by GMP Contractor,
subcontractors or any design and/or construction professionals engaged by Landlord
to perform the Tenant Improvement Work and costs of correcting defective or nonconforming
work, disposal and replacement of materials and equipment incorrectly ordered
or supplied and correcting damage to property not forming part of the Tenant Improvement
Work to the extent covered by manufacturer’s or installer’s warranties or required
to be corrected by the GMP Contractor under the GMP Contract;

 

(3)           Amounts
(including, without limitation, salaries, benefits or fees) paid to Landlord,
any affiliate of Landlord or any director, officer, member, shareholder or employee
of Landlord or any affiliate of Landlord (collectively, the “Landlord Parties”), except for the construction management
costs to be paid to the Construction Manager;

 

(4)           Any
costs not properly charged under the GMP Contract;

 

(5)           Overhead
and general expenses of Landlord except as related solely to the Tenant
Improvement Work;

 

C-8

 

(6)           Costs
of self-insured losses (e.g., losses within the deductible limits); and

 

(7)           Costs
attributable to any Base Building Work or the improvements being performed by
Landlord to the Terminated Premises and other areas on the second (2nd) floor of the Building (the “Landlord’s 2nd
Floor Work”), including costs of insurance, financing costs, legal fees and
construction management costs allocable to Base Building Work and the
Landlord’s 2nd Floor
Work, but including costs for making the Terminated Premises conform with the
surrender requirements of Paragraphs 2 and 20 of this Amendment if Tenant fails
to perform its obligations thereunder.

 

Landlord shall deliver a post-final
completion accounting and true-up of Total Costs in reasonable detail and a
calculation of Total Costs Savings (as hereinafter defined), together with all
backup and supporting materials requested by Tenant, within sixty days (60)
following the date that Landlord achieves the Substantial Completion of the
Tenant Improvement Work. Any part of Total Costs (e.g. completion of punchlist
items and warranty work) shall be accounted for in the same manner after
Substantial Completion.

 

(b)           Allowance Excess/Tenant’s Contribution.

 

Landlord shall apply the Tenant Improvement
Allowance against the Total Costs with each payment being made on an 80-20
basis (80% by Landlord and 20% by Tenant up to a total contract price of
$4,500,000). Except for costs due to the gross negligence or willful misconduct
of Landlord or its agents or employees or contractors and any subcontractors
procured by the GMP Contractor, in no event shall Landlord’s contribution to or
cost for the Tenant Improvement Work exceed $3,600,000.00. In the event the
Total Costs exceed $4,500,000, then the percentage of each progress payment to
be made by Landlord will be based on a fraction determined as follows:

 

Landlord’s
Percentage = $3,600,000/Total Project Costs

 

By way of
example only, should the Tenant Improvement Work cost be projected at $7.2
million, since Landlord has agreed to pay up to $3.6 million in Tenant Work costs,
Landlord and Tenant will each contribute 50% of costs as incurred during construction,
with a true-up of costs promptly following Substantial Completion of the Tenant
Improvement Work for payments made by the parties outside of the applicable ratio
(e.g. outside of the 80/20 ratio, adjusted as applicable consistent with the
example set forth above). Subject to the provisions of Section 12.2(c) as
contained in Paragraph 18 of this Amendment, Tenant’s pari passu  payments will begin, (including any payments
which were deferred under Paragraph 18, of this Amendment) on the date Landlord
delivers to Tenant the SNDA in form and content required under Paragraph 18 of
this Amendment, subject to Tenant’s receipt of the documentation required under
this Section 4(b) of Exhibit C. Amounts incurred after delivery of the SNDA
will be billed and payable on a monthly basis as costs are incurred. Amounts
deferred until the SNDA is delivered will be due upon delivery of the SNDA. As
of the date of this Amendment, the total design and other Total Costs incurred
to date are $47,158.71 of which Landlord has paid $37,937.01 and Tenant has
paid $9,221.70.

 

C-9

 

Change Orders
which increase the GMP over $4,500,000 or decrease the GMP to a sum still in
excess of $4,500,000 will be paid 100% by or credited 100% to Tenant. Change
Orders which decrease the GMP below $4,500,000 will be shared on an 80/20 basis.

 

The amount of
any payments of Tenant’s Contribution requested hereunder shall be net of
Tenant’s allocable share of applicable retainage under the GMP Contract.

 

If the Total
Costs exceed the amount of the Tenant Improvement Allowance, Landlord shall so
notify Tenant in writing and Tenant shall be required to make payments to
Landlord, or at Landlord’s election directly to the GMP Contractor, on a
pari passu basis with the Tenant
Improvement Allowance (the “Tenant’s Contribution”)
to pay the Total Costs, provided, however, that Landlord’s and Tenant’s
Contribution payments shall be made on a percentage of completion basis, not
more than once during each calendar month, and any amounts due from Tenant as
Tenant’s Contribution will be paid not sooner than fourteen (14) nor later than
twenty-one (21) days following Tenant’s receipt of a disbursement request (each
a “Funding Request”) along with, for each payment,
a payment request, which shall be in the form of an Application for Payment on AIA
Document G702 and G703 certified by the Project Architect seeking that
percentage of the Tenant’s Contribution (less the applicable holdback amount
specified in the GMP Contract) which corresponds to the percentage of
completion of the Tenant Improvement Work which has been achieved as of the
date of such payment request and certified as such in the AIA Form Requisition
Certificate of Payment by M&F or its successor as Project Architect. As a
part of each payment request, Tenant will be provided with a copy of each Lien
Waiver required to be furnished under the GMP Contract.

 

Before the
payment of any Funding Request, Landlord and/or the GMP Contractor will provide
to the Tenant at least twenty-one (21) days before such payment is due:

 

(i)            A
copy of the final Certificate of Occupancy (or its equivalent consistent with
the provisions of the definition of “Substantial Completion of the Tenant
Improvement Work” contained in this Amendment) issued to Landlord by the
applicable governmental authority with respect to the Retained Premises (final payment
only);

 

(ii)           An
insurance certificate or policy (or endorsement to existing policy) evidencing
that all coverages required under the Lease are in effect with respect to the
Retained Premises and the Tenant Improvement Work (first payment and final
payment only);

 

(iii)          Provided
Tenant has made all payments required of it under this Amendment, final lien
releases for the Tenant Improvement Work from all major subcontractors [“major
subcontractor” shall be defined as one or a series of contracts with one
subcontractor exceeding $50,000 in the aggregate] and the general contractor
with respect to which payment is being requested (final payment only);

 

C-10

 

(iv)          Proof
that Landlord has made payment of the corresponding portion of Landlord’s
Contribution due with respect to the particular Funding Request; and

 

(v)           An
inspection by Tenant’s Representative, if Tenant so elects, of the Tenant
Improvement Work upon confirmation by the then Project Architect of Substantial
Completion of the Tenant Improvement Work, provided that any such inspection
occurs within five (5) business days after receipt of the request for
final payment and retainage release, subject to delays caused by Landlord’s
failure to provide access to the Retained Premises at reasonable times to
Tenant’s Representative for such inspection.

 

(c)           Tenant’s
Share of Total Cost Savings. Landlord and Tenant shall endeavor
to use commercially reasonable value engineering  practices whenever possible in performing the
Tenant Improvement Work, and will share in the savings (the “Total Costs Savings”) as follows: Any value engineering
savings which reduce the Total Costs of the Tenant Improvement Work will belong
to Tenant until the Total Costs Savings reduce the Total Costs to $4,500,000
and, thereafter, any net value engineering savings will be shared between
Landlord and Tenant with Landlord receiving 80% of the additional savings and
Tenant receiving 20% of the additional savings. 

 

(d)           Tenant
Furnishing, Fixtures and Equipment. Tenant shall pay for: (i) its
share of Tenant Improvement Work up to $4,500,000 as set forth in (B) of
this section and all costs of Tenant Improvement Work referenced in the cost
estimate and Budget in excess of $4,500,000.00; (ii) the cost of
purchasing and installing Tenant’s furnishings, fixtures and equipment not
included in Tenant Improvement Work; and (iii) the cost of all permits and
approvals required for its specific use and operation. Landlord and Tenant
acknowledge and agree that, subject to and in conformance with the Phasing
Schedule for completion of Tenant Improvement Work, Tenant will be
permitted to access the Retained Premises upon reasonable prior notice to
Landlord and the Construction Manager (which notice may be oral), in order to
install specialized equipment and fixtures being ordered by Tenant for its use
and operation of the Retained Premises. Tenant agrees not to interfere with the
prosecution of the Tenant Improvement Work. Landlord and Tenant agree to
cooperate with each other to facilitate such access and installations.

 

(e)           Tenant Payment
Defaults. Any payment of Tenant’s Contribution required to be made by Tenant
under this Amendment and not paid when due shall be equivalent of a default for
non-payment of Annual Fixed Rent under the Lease and entitle Landlord to the
remedies for non-payment of Annual Fixed Rent under the Lease. 

 

5.             PERFORMANCE OF
TENANT IMPROVEMENT WORK

 

(a)           Landlord
shall obtain all local licenses, permits and approvals (whether governmental or
non-governmental) required to perform the construction of Tenant Improvement Work
from the Needham Building Department. Notwithstanding anything contained in the
Lease to the contrary, it shall not be Landlord’s responsibility to obtain the
approval of the Town

 

C-11

 

of Needham
Health Department or any other required federal, state and/or local licenses,
permits and approvals (governmental or private) required to operate and use the
Retained Premises for the Permitted Use except to the extent any such licenses,
permits or approvals are required from the Town of Needham Building Department
to sign off construction of the Tenant Improvement Work for general occupancy
of the Premises and not related to Tenant’s particular use of the Premises.
Further and notwithstanding anything in this Amendment and/or the Lease to the contrary,
Tenant and not Landlord and GMP Contractor shall be responsible for compliance
of the Construction Documents with applicable codes and laws. The foregoing
shall not relieve the GMP Contractor or any subcontractors from their
respective obligations to ensure that materials ordered and installed by such
parties as part of the Tenant Improvement Work are in compliance with the
Construction Documents. 

 

(b)           Promptly after the
later to occur of (i) the issuance of a building permit for the Tenant
Improvement Work, and (ii) Landlord’s entry into the GMP Contract for the
Tenant Improvement Work, Landlord will use commercially reasonable efforts and
due diligence to perform the Tenant Improvement Work to achieve Substantial
Completion of the Tenant Improvement Work in accordance with the Phasing Schedule (subject
to Tenant Delay, Change Orders and/or Force Majeure).

 

(c)           The Tenant Improvement
Work shall be (i) performed in a good and workmanlike manner using new
materials (unless used and/or existing materials are called for under the Construction
Documents), (ii) subject to and in accordance with all Legal Requirements
(as defined in Section 6 of this Amendment), and (iii) completed in
accordance with the Construction Documents (including approved Change Orders).

 

(d)           Landlord will
reasonably cooperate with Tenant and Tenant’s Representative in the performance
of the Tenant Improvement Work to provide Tenant access to the Premises both prior
to and during construction and the right to attend all job meetings between
Landlord and GMP Contractor for the Tenant Improvement Work and to review
subcontractor submittals and shop drawings. Tenant shall have the right to have
Tenant’s Representative or other qualified engineer or contractor inspect the
quality of construction of the Tenant Improvement Work and the Base Building
Work and the compliance of the Tenant Improvement Work with the Construction
Documents, provided such inspection is performed at a time mutually agreeable
to Landlord and Tenant and which will not cause any delay in the performance of
the Tenant Improvement Work or the Base Building Work. Landlord agrees to
notify Tenant (which notice may be oral) of all job meetings held with the
general contractor and related to the scheduling, design, modifications, change
orders, or cost reporting or pricing of the Tenant Improvement Work. Tenant
shall have the right to review and approve change orders to any portion of the Tenant
Improvement Work proposed by Landlord or GMP Contractor. Tenant and its contractors
and representatives shall work harmoniously and cooperate with Landlord and its
contractors and representatives and not unreasonably interfere with Landlord’s
Work.

 

(e)           In addition to
insurance required to be maintained by Landlord under the Lease, Landlord shall
carry and maintain with respect to the Project at all times during the design
and construction of the Base Building Work and the Tenant Improvement Work, and
shall require GMP Contractor, Landlord’s architect and all contractors and subcontractors,
as applicable, to maintain at all times during the design and construction of
the Base Building Work and Tenant 

 

C-12

 

Improvement
Work, written by insurers rated by A.M. Best & Co., with a minimum
rating of (or equivalent to) A-IX and qualified to do business in the
Commonwealth of Massachusetts the types of insurance and minimum coverage
amounts hereinafter set forth: (1) property insurance written on a builder’s
risk “all-risk” or equivalent policy form in the total value for the Base Building
Work and Tenant Improvement Work, as applicable, at the site on a replacement
cost basis without optional deductibles; (2) workers’ compensation
insurance in statutory amounts and employer’s liability insurance in the amount
of $1,000,000 for bodily injury or disease and with a wavier of subrogation
included in such policies on behalf of Tenant, including policies of subcontractors;
(3) commercial automobile vehicle insurance covering owned, non-owned and hired
vehicles for personal injury in the amount of $1,000,000 combined single limit
for bodily injury and for property damage and with a waiver of subrogation
included in such policy on behalf of Tenant; (4) commercial general
liability coverage for bodily injury, personal injury and property damage in
the amount of $1,000,000 per occurrence and $2,000,000 aggregate limit and umbrella
coverage in the amount of $10,000,000 and with a waiver of subrogation included
in such policy on behalf of Tenant; and (5) coverage for negligent acts,
errors and omissions arising out of the performance of professional services
included in the GMP Contract. Such insurance carried by Landlord may be part of
a blanket policy. Tenant shall be named as a certificate holder and additional
insured on all comprehensive general liability insurance coverages required under
this Section 5(e) and under the GMP Contract and all such
comprehensive general liability insurance coverages shall be made primary to
any insurance carried by Tenant under the Lease. The cost of such insurance
documented as allocable to Tenant Improvement Work under this paragraph (e) shall
be a part of the Total Costs.

 

6.             DELIVERY; REMEDIES
FOR DELAY

 

(a)           Subject to adjustments
in the time for performance due to Change Orders, Tenant Delays, and/or Force
Majeure, the Tenant Improvement Work shall be Substantially Completed on or
before seventeen (17) months from the date on which (i) Tenant relocates
into the respective portions of the Premises required under the initial phase
of the Phasing Schedule for Landlord to commence the Tenant Improvement
Work and vacates and surrenders to Landlord those portions of the Premises
required to be vacated by Tenant in accordance with the initial phase of the
Phasing Schedule in the condition required under this Agreement; and (ii) Landlord
has obtained all local governmental permits required to be obtained by Landlord
under this Amendment for construction of the Tenant Improvement Work. When the
Tenant Improvement Work is Substantially Complete, Landlord shall so notify
Tenant in writing (such notice, the “Completion Notice”)
and shall tender full possession of the Retained Premises to Tenant subject,
however, to completion of Punchlist Items. Tenant shall notify (the “Substantial Completion Objection”) Landlord in writing
within ten (10) days following receipt of Landlord’s notice of Substantial
Completion if Tenant does not agree that the Tenant Improvement Work is
Substantially Complete (specifying items alleged not to be Substantially Completed)
and the parties shall cooperate to resolve any disagreements as soon as
possible. If the parties are unable to agree that the Tenant Improvement Work
has been Substantially Complete, either party may submit the matter to
arbitration in the manner provided in Section 3(c) of this Exhibit C. The Punch List
Items shall be set forth in a list prepared during a walkthrough inspection of
the Retained Premises by Landlord, the GMP Contractor, Tenant, Tenant’s
Representative and Tenant’s consultants within seven (7) days after the
Completion Notice. Landlord shall commence and use reasonable efforts to
complete the Punch List within

 

C-13

 

sixty (60)
days of the final agreement as to the Punch List Items. If Tenant fails to
timely give the Substantial Completion Objection, then for the purposes of this
Amendment, Substantial Completion will be deemed to have been achieved, except
to the extent covered by manufacturer’s or installer’s warranties or under the
GMP Contract.

 

(b)           Subject to adjustments
in the time for performance due to Change Orders, Tenant Delays, and/or Force
Majeure, the Base Building Work shall be Substantially Completed on or before
twenty-one (21) months from the date on which (i) Tenant relocates into
the portion of the Premises required under the Phasing Schedule for
Landlord to commence the Base Building Work and Tenant Improvement Work; and (ii) Landlord
has obtained all local governmental permits required for construction of the
Base Building Work and Tenant Improvement Work, subject, however to completion
of Punch List Items. When the Base Building Work is Substantially Complete,
Landlord shall so notify Tenant in writing (such notice, the “Base Building Completion Notice”) and
Tenant and Tenant’s Representative shall have a right to inspect the Base
Building Work within seven (7) days after the Base Building Completion Notice.

 

(c)           In the event that
Substantial Completion of the Tenant Improvement Work is delayed for reasons other
than Force Majeure, Tenant Delays and/or Change Orders beyond April 9,
2007, then from and after May 1, 2007 as that date may be extended on
account of delays due to Force Majeure Tenant Delays and/or Change Orders,
Annual Fixed Rent and Additional Rent (except for utilities used by Tenant) for
the Terminated Premises shall abate until the date that is fifteen (15)
business days following the date of Substantial Completion of the Tenant
Improvement Work in accordance with the terms of this Amendment. If Substantial
Completion of Tenant Improvement Work is delayed subsequent to April 30,
2007 due to Force Majeure, Tenant Delays or Change Orders, Tenant will pay rent
on the Terminated Premises for the periods of those delays.

 

(d)           In the event that Substantial
Completion of the Tenant Improvement Work is delayed beyond August 1,
2007, as such date may be extended for delays due to Force Majeure, Tenant
Delays and/or Change Orders, then in addition to the remedies contained in
Paragraph 6(c) above, Tenant shall be entitled to assume Landlord’s
position as Owner under the GMP Contract and to complete the Tenant Improvement
Work in accordance with the Construction Documents and the Budget as of that
date (the “Assumption Date”) specified in a
written notice from Tenant to Landlord (the “Assumption
Notice”) with a copy of the Assumption Notice to any holder(s) of a
mortgage on the Building (the “Holder(s)”),
the identity and address of which Holder(s) Tenant has received written notice,
which Assumption Date shall be no earlier than sixty (60) days after the date
of the Completion Notice. The Assumption Notice shall include a statement from
Tenant’s architect setting forth the amount of time reasonably estimated by the
architect as being needed to complete the Tenant Improvement Work. If Tenant
exercises such right to perform the Tenant Improvement Work following a failure
by Landlord to do so, and Landlord and Holder (in accordance with the SNDA
executed by such Holder pursuant to Section 12.2 of the Lease) fail to pay
and disburse the theretofore unfunded Landlord’s portion of the Tenant
Improvement Allowance towards the Total Costs, then Tenant may deduct Landlord’s
unfunded portion of such Tenant Improvement Allowance plus any increased costs under
the GMP Contract incurred by Tenant to complete the Tenant Improvement Work resulting
from Landlord’s non-permitted delays in completing the same (the “Additional

 

C-14

 

Costs”)
from the Annual Fixed Rent next due from Tenant under the Lease until Tenant
has been fully reimbursed for the undisbursed amount of the Tenant Improvement
Allowance which Landlord failed to pay plus the Additional Costs.
Notwithstanding the foregoing, if, prior to the Assumption Date, Tenant receives
written notice from the Holder(s) that Holder intends to perform Landlord’s
obligation to complete the Tenant Improvement Work and specifies a date for
completion of the Tenant Improvement Work not later than 1.5 times the amount
of time reasonably estimated by Tenant’s Architect as necessary for the
completion of the Tenant Improvement Work, then Tenant’s right to assume the
GMP Contract and complete the Tenant Improvement Work following Landlord’s
failure to do so shall be postponed for the period of time set forth in Holder’s
notice.

 

(e)           For a period of one (1) year
after Substantial Completion of the Tenant Improvement Work, the Landlord shall
promptly correct defective or materially nonconforming work in both the Base
Building Work and the Tenant Improvement Work after written request from the
Tenant delivered to Landlord. Following Substantial Completion of the Tenant Improvement
Work, Landlord shall assign to Tenant, on an exclusive basis, any claims, correction
obligations, warranties and extended warranties provided by GMP Contractor or
any other party with respect to the components and equipment included as part
of the Tenant Improvement Work. If such claims, corrective obligations and
warranties are not assignable, Landlord shall act diligently during the first
year after Substantial Completion, in pursuing any available remedies against
the contractors performing the Tenant Improvement Work. Landlord agrees to
insert a clause into the GMP Contract requiring Contractor to assign all
manufacturer warranties to Landlord or Tenant as appropriate. Notwithstanding
the foregoing, following the expiration of such one (1) year period after
the Substantial Completion of the Tenant Improvement Work, Landlord will, to
the extent assignable, assign to Tenant any and all rights of Landlord under
the GMP Contract to pursue remedies or enforce rights against the GMP Contractor
or any other contractors employed by the GMP Contractor for defective or nonconforming
work, to the extent such rights and remedies are still in full force and
effect. Such assignment shall be without recourse to Landlord.

 

(f)            The GMP Contract shall
provide that any and all indemnifications running for the benefit of Landlord
or Construction Manager by the GMP Contractor or any other contractors performing
the Tenant Improvement Work or under the GMP Contract shall extend to Tenant to
the same extent as Landlord is indemnified by such parties.

 

(g)           During the term of the
Lease the Landlord shall (a) maintain at its local offices in the Greater
Boston Area or at the job site at or near the Premises one record copy of the drawings,
specifications, addenda, change orders, change directives and other
modifications for the Tenant Improvement Work, in good order and marked
currently to record field changes and selections made during construction (the “As-Built Documents”), and (b) the As-Built Documents
shall be provided to the Tenant at the conclusion of the Tenant Improvement
Work in paper and electronic format approved by the Tenant.

 

(h)           Landlord shall
discharge or bond over any lien for labor and/or materials or notice of
contract filed by any of Landlord’s contractors, subcontractors, laborers,
materialmen or suppliers against Tenant’s property or the leasehold estate of
Tenant.

 

C-15

 

(i)            The GMP Contract and
subcontracts for the Base Building Work and the Tenant Improvement Work shall
provide that they shall be on an “open book” basis. Landlord shall cause the
Construction Manager and GMP Contractor to maintain full and detailed accounts,
books and records, including without limitation purchase orders, receipts, bids
and subcontracts, for both the Tenant Improvement Work and the Base Building
Work and Tenant shall have the right to audit, examine and copy all such books
and records upon at least ten (10) business days prior notice to Landlord.
The purpose for Tenant’s right of review of the accounts, books and records for
Base Building Work shall be to ensure compliance with the provisions of Section
3(a) of this Amendment.

 

C-16

 

EXHIBIT C-1

SPACE PLAN

 

[Floor Plan]

 

 

EXHIBIT C-2

PHASING SCHEDULE

 

[Table]

 

 

EXHIBIT C-3

BUDGET

 

[Table]

 

 

EXHIBIT C-4

BASE
BUILDING SPECIFICATION

 

 

EXHIBIT C-4

 

Base Building Work

 

Landlord will perform the
following Base Building Work at Landlord’s sole cost and expense:

 

a.               A new glass and aluminum main entry vestibule
will be constructed to provide a single main entrance to the Building. The new
entry vestibule will have glazed aluminum exterior doors;

 

b.              Window units will be removed from certain
window openings on the first and second floors of the Original Premises and
replaced with new, aluminum-framed, dual-pane, insulating glass window units in
accordance with architectural plans, elevations and details to be prepared by
Landlord’s Architect as part of the Base Building Plans. In addition, other
existing window openings will be modified and/or enlarged in accordance with
those documents, and new, aluminum-framed, dual-pane, insulating glass window
units will be fabricated and installed in those enhanced window openings;

 

c.               Tenant’s existing public entry doorway (on
the Fourth Avenue elevation of the Building) will be removed and replaced, as
part of the new window system installation, with new window unit(s);

 

d.              The exterior of the perimeter walls
containing the Original Premises will be clad with an aluminum panel system in
areas selected by the Landlord’s Architect to accent the existing brick facade
and complement the new window units;

 

e.               A new monument sign, constructed with
materials which are complementary to the new exterior building materials, will
be located on the property to identify Tenant.

 

f.                 Existing landscaping will be supplemented
with plantings and seasonal color.

 

g.              Roof-mounted, packaged HVAC units will be
provided to replace and supplement certain systems currently serving the
Terminated Premises.

 

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

 

 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT
AGREEMENT

 

THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) is made as of
                        ,
2005, by and among AMERICAN GENERAL LIFE
INSURANCE COMPANY, a Texas corporation, having an address at
1 SunAmerica Center, Century City, Los Angeles, California 90067-6022,
Attention: Director-Mortgage Lending and Real Estate (“Lender”),
Avant Immunotherapeutics, Inc., a Delaware Corporation, having an address at
119 Fourth Avenue, Needham, MA 02494 (“Tenant”) and
DIV Needham 115, LLC, a Massachusetts Limited Liability Company, having an
address at The Davis Companies, One Appleton Street, Boston, MA 02116 (“Landlord”).

 

RECITALS:

 

A.           Landlord is or will be the owner of the land
legally described in Exhibit A attached hereto and made a part
hereof and the buildings and other improvements located on such land (such
land, buildings and improvements being referred to herein as the “Property”)

 

B.             Lender has agreed to make a loan (the “Loan”) to Landlord in connection with Landlord’s financing
of the Property.

 

C.             Tenant is the lessee under that certain
Lease dated October 1, 1994 relating to a portion of the Property (the “Premises”) commonly referred to as 119 Fourth Avenue,
Needham, MA 02494 as amended by a First Amendment to Lease (the “First Amendment”) dated November     ,
2005 (collectively, the “Original Lease”).
The Original Lease, as hereafter modified, amended or supplemented from time to
time, is referred to hereinafter as the “Lease.”

 

D.            The Loan will be evidenced by a certain
promissory note (the “Note”) and
secured by, among other things, a first-lien Mortgage, Deed of Trust, Deed to
Secure Debt or similar security instrument encumbering the Property (such
instrument, as amended, increased, renewed, modified, consolidated, replaced,
combined, substituted, severed, split, spread or extended from time to time,
being herein referred to as the “Security Instrument”).

 

E.              The Lease may be assigned by Landlord to
Lender as further security for the Note.

 

F.              It is a condition to obtaining Lender’s
agreement to make the Loan that the Security Instrument shall unconditionally
be and remain at all times a lien or charge upon the Premises prior and
superior to the Lease.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and understanding
that Lender will rely on Tenant’s covenants and certifications, as set forth
herein, in making the Loan, the parties hereto agree and certify as follows:

 

 

1.               Tenant represents and warrants to Lender
that the Lease has been duly authorized, executed and delivered by Tenant.
Landlord and Tenant each represent and warrant to Lender that (a) the
Lease is in full force and effect, (b) except as expressly set forth in
Recital C hereof, the Lease has not been modified or amended in any way, and (c) to
the best of the parties’ knowledge, no party to the Lease is in default with
respect to such party’s obligations under the Lease as of the date of this
Agreement.

 

2.               Subject to the terms of this Agreement,
the Security Instrument and any and all terms, conditions and provisions
thereof, all advances made or to be made thereunder, and any other amendments,
modifications, renewals, extensions, alterations or replacements thereof are
and shall be and remain at all times a lien or charge upon the Premises senior,
prior and superior to the Lease, the leasehold estate created thereby and all
rights and privileges of Tenant or any other lessee thereunder in or to the
Premises or in or to the Property. Subject to the terms of this Agreement, the
Lease, the leasehold estate created thereby and all rights and privileges of
Tenant or any other lessee thereunder in or to the Premises or in or to the
Property are hereby subjected and made subordinate to, and Tenant hereby
subordinates the leasehold estate created by the Lease, and all of Tenant’s
right, title, and interest under the Lease and in and to the Premises and in or
to the Property to, the lien or charge of the Security Instrument and to all
the terms, conditions and provisions thereof, to all advances made or to be
made thereunder, and to any amendments, modifications, renewals, extensions,
alterations or replacements thereof.

 

3.               As long as Tenant is in compliance with
the terms of this Agreement and is not in default in the performance of its
monetary or other material obligations under the Lease, which default has
continued beyond any cure periods provided in the Lease or at law, Tenant shall
not be named as a party defendant in any action for foreclosure, trustee’s sale
or other enforcement of the Security Instrument (unless required by law), nor
shall the Lease be terminated in connection with, or by reason of, foreclosure,
trustee’s sale or other proceedings for the enforcement of the Security
Instrument, or by reason of a transfer of the landlord’s interest under the
Lease pursuant to the taking of a deed or assignment (or similar device) in
lieu or in contemplation of foreclosure, nor shall Tenant’s use or possession
of the Premises be interfered with, and the rights of Tenant under the Lease
shall remain in full force and effect, except that the person acquiring or
succeeding to the interests of Landlord as the result of any such action or
proceeding and such person’s successors and assigns (any of the foregoing being
hereinafter referred to as “Successor”)
shall not be:

 

(a) bound by any prepayment of rent paid
more than thirty (30) days in advance of the due date or for any security
deposit unless actually received by Successor and then limited to the amount of
such security deposit actually received subject to all rights, privileges and
benefits of Landlord set forth in the Lease with respect thereto;

 

(b) liable for any act or omission of
any prior landlord (including, without limitation, Landlord) or for any claim
for damages against any such prior landlord (including, without limitation,
Landlord; provided that the foregoing shall not relieve Lender or such
Successor of liability for damages arising out of any continuation of such
breach, act or omission or for the performance of any act necessary to cure
such breach, but solely with respect to the period after the date Lender or
such Successor takes over title to the Property, was notified of the applicable
claim of breach, act or omission in accordance with the mortgagee notice
provisions

 

2

 

of the Lease and/or this Agreement, and failed to cure same within the
time period provided for in the Lease or herein, as the case may be);

 

(c) subject to any offsets, defenses or
counterclaims which Tenant may have against any prior landlord (including,
without limitation, Landlord); provided that the  foregoing shall not (i) relieve Lender
or such Successor of liability to disburse the Tenant Improvement Allowance
under Exhibit C to the First Amendment, (ii) reduce Tenant’s right of
offset against Landlord under the Lease with respect to the non-payment of all
or any part of the Tenant Improvement Allowance under Exhibit C to the
First Amendment or the amount owed to Tenant under Exhibit C to the Lease
because of Landlord’s failure to perform the Tenant Improvement Work or the
Base Building Work (as defined in the Lease) (collectively the “Special Offset Rights”) or (iii) relieve Lender or such
Successor of liability for any offsets or defenses arising out of any breach of
the Lease to the extent such breach continues after the date Lender or such
Successor takes over title to the Property, was notified of the applicable
claim of breach, and failed to cure same within the time period provided for in
the Lease or

 

(d) bound by any amendment or
modification of the Original Lease made without the written consent of Lender.

4.               If the interest of Landlord under the
Lease shall be transferred by reason of any foreclosure, trustee’s sale or
other proceedings for enforcement of the Security Instrument or the obligations
which it secures or pursuant to a taking of a deed or assignment (or similar
device) in lieu or in contemplation of foreclosure thereof, then as long as
Tenant is not in default past any applicable cure periods provided in the Lease
or at law, and except as provided in this Agreement, Tenant shall be bound to
Successor and Successor shall be bound to Tenant under all of the terms,
covenants and conditions of the Lease for the unexpired balance of the term
thereof remaining (and any extensions, if exercised), with the same force and
effect as if Successor were Landlord, and Tenant does hereby (a) agree to
attorn to Successor, including Lender if it be Successor, as its landlord, (b) affirm
its obligations under the Lease, and (c) agree to make payments of all
sums due under the Lease to Successor subject to Tenant’s rights thereunder,
said attornment, affirmation and agreement to be effective and self-operative
without the execution of any further instruments, upon Successor succeeding to
the interest of Landlord under the Lease. To the extent permitted by applicable
law, Tenant waives the provisions of any statute or rule of law now or
hereafter in effect that may give or purport to give it any right or obligation
to terminate or otherwise adversely affect the Lease or the obligations of
Tenant thereunder by reason of any foreclosure, trustee’s sale or other
proceedings for enforcement of the Security Instrument or the taking of a deed
or assignment (or similar device) in lieu or in contemplation of foreclosure,
but said attornment shall be effective and self-operative without the execution
of any further instruments upon Successor’s succeeding to the interest of the
lessor under the Lease. Tenant agrees to provide Successor a written confirmation
of its attornment to Successor within ten (10) business days after receipt
of a written request therefor from Successor, but failure to receive such
written confirmation from Tenant shall not derogate from Tenant’s obligations
to Successor or Successor’s obligations to Tenant hereunder.

 

5.               Upon the written request of either
Successor or Tenant to the other given at the time of foreclosure, trustee’s
sale or other proceeding for enforcement of the Security Instrument or by deed
in lieu thereof, the parties shall execute a lease of the Premises upon the

 

3

 

same terms and
conditions as the Lease between Landlord and Tenant, which Lease shall cover
any unexpired balance of the term of the Lease existing prior to such
foreclosure, trustee’s sale or conveyance in lieu thereof.

 

6.               Notwithstanding anything to the contrary
in the Lease, Tenant shall not terminate or cancel the Lease or the term
thereof by reason of a default or breach by Landlord thereunder and Tenant
shall not commence any action against Landlord or otherwise pursue any right or
remedy against Landlord in consequence of a default by Landlord under the terms
and provisions of the Lease unless written notice by Tenant specifying such
default is mailed to Lender at its address set forth above. Tenant further
agrees that Lender shall have the right, but shall not be obligated, to cure
such default on behalf of Landlord within thirty (30) days after receipt of
such notice, or if such default cannot reasonably be cured by the payment of
money or within such 30-day period and failure to cure will not delay the
performance of the Tenant Improvement Work or otherwise materially affect
Tenant’s rights under the Lease, Lender shall have the right to commence the
cure of such default in such 30-day period and thereafter diligently pursue
such cure until completed. Tenant further agrees not to invoke any of its
remedies either express or implied, under the Lease (except for Tenant’s
Special Offset Rights and except in the case of emergency repairs) unless such
default shall remain uncured at the expiration of the 30-day period after
receipt of such notice of default, or subject to the conditions set forth in
this Section 6 for affording lender additional cure time if such default
cannot reasonably be cured by Lender in such 30-day period, unless the cure of
such default shall not be commenced within such 30-day period and thereafter
prosecuted diligently to completion.

 

7.               Tenant agrees that neither this Agreement
nor the Security Instrument shall, prior to Lender’s succession to Landlord’s
interest in the Premises, through any foreclosure, trustee sale, deed or
assignment in lieu of foreclosure, or a possessory action, operate to place
responsibility for the control, care, management or repair of the Premises upon
Lender, or impose responsibility for the carrying out of the terms and
conditions of the Lease, nor shall Lender be responsible for or liable for any
waste committed on the Premises by any party whatsoever or for any dangerous or
defective condition of the Premises, or for any negligence in the management,
upkeep, repair or control of the Premises resulting in any damage to property
or in any loss or injury or death to any person.

 

8.               In the event that Lender notifies Tenant
of any default under the Security Instrument and demands that Tenant pay rent
and all other sums due under the Lease to Lender, Tenant (waiving any proof of
the occurrence of such event of default other than receipt of Lender’s notice)
shall pay rent and all other sums due under the Lease directly to Lender. Any
payments made to Lender by Tenant shall not affect or impair the other rights
and remedies of Lender under the Security Instrument or otherwise against
Landlord. Any and all payments made to Lender by Tenant pursuant to the
foregoing shall be credited against Tenant’s rental obligations under the Lease
regardless of whether Lender had the right to make such demand and regardless
of any contrary demands which may hereafter be made by Landlord.

 

9.               This Agreement shall be the whole and
only agreement between the parties hereto with regard to the subordination of
the Lease to the lien or charge of the Security Instrument in favor of Lender,
and shall supersede and cancel, but only insofar as would affect the priority
of the Lease as to such subjection or subordination, all other subjection or

 

4

 

subordination
agreements including, but not limited to, those provisions, if any, contained
in the Lease which provide for the subjection or subordination of said Lease to
a deed of trust or to a mortgage or mortgages.

 

10.         This Agreement may not be modified except by
an agreement in writing signed by the parties. All references to Lender in this
Agreement shall be deemed to refer to Lender, its participants, and their
respective successors and assigns. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and
assigns.

 

11.         Nothing contained in this Agreement shall in
any way impair or affect the lien created by the Security Instrument, except as
specifically set forth herein.

 

12.         Tenant acknowledges that this Agreement
satisfies any condition or requirement in the Lease relating to the granting of
a non-disturbance agreement with respect to the Security Instrument. In the
event there is any inconsistency between the terms and provisions hereof and
the terms and provisions of the Lease dealing with non-disturbance, the terms
and provisions hereof shall be controlling.

 

13.         All notices, demands or requests made pursuant
to, under or by virtue of this Agreement shall be in writing and delivered by
hand, sent by an overnight courier service providing dated evidence of delivery
or mailed by certified or registered mail, return receipt requested, to the
person to whom the notice, demand or request is being made at its address set
forth herein. Such notices shall be deemed to have been promptly given and
received for all purposes (a) if hand delivered, effective upon delivery; (b) if
mailed, by United States registered or certified mail, postage prepaid, return
receipt requested, effective on the date shown on the return receipt; or (c) if
sent by Federal Express or other reliable express courier, effective on the
next business day after delivery to such express courier service. Any person
may change the place that notices and demands are to be sent by written notice
delivered in accordance with this Agreement. “Business day” shall mean any day,
except Saturday, Sunday and any day which, in the State in which the Property
is located, is a legal holiday or a day on which banking institutions are
authorized or required by law or other government action to close.

 

14.         This Agreement shall be governed by the laws
of the State in which the Property is located. If any of the terms of this
Agreement or the application thereof to any person or circumstances shall to
any extent be invalid or unenforceable, the remainder of this Agreement or the
application of any such terms to any person or circumstances other than those
as to which it is invalid or unenforceable shall not be affected thereby, and
each term of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.

 

15.         In the event any legal action or proceeding is
commenced to interpret or enforce the terms of, or obligations arising out of,
this Agreement, or to recover damages for the breach thereof, the party
prevailing in any such action or proceeding shall be entitled to recover from
the non-prevailing party all reasonable attorneys’ fees, costs and expenses
incurred by the prevailing party.

 

5

 

16.         This Agreement may be executed in
counterparts, each of which shall constitute an original and all of which taken
together shall constitute one and the same agreement.

 

17.         Tenant understands, acknowledges and agrees
that Lender in making the Loan and third parties who are interested in the
matters covered by this Agreement are relying on the representations contained
herein, including without limitation purchasers, transferees, assignees,
servicers, participants, investors, and their respective successors and
assigns, and credit rating agencies in connection with the Loan.

 

[Remainder of Page Intentionally Left
Blank]

 

6

 

IN WITNESS WHEREOF, the parties hereto have hereunto caused this Agreement
to be duly executed as of the
day and year first above written.

 

	
   

  	
   

  	
   

  
	
   

  	
  “TENANT”

  
	
   

  	
   

  	
   

  
	
   

  	
  Avant
  Immunotherapeutics, Inc., a

  Delaware Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Dr. Una
  Ryan

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President
  and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LENDER”

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  GENERAL LIFE INSURANCE

  COMPANY, a Texas corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  AIG GLOBAL
  INVESTMENT CORP., a

  New Jersey corporation, its
  investment advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “LANDLORD”

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DIV Needham 115, LLC, a
Massachusetts Limited Liability Company

  By: Davis Management Corp.,

  Its: Managing Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
													

 

 

[USE STATE SPECIFIC NOTARY FORM]

 

	
  STATE OF Massachusetts

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  COUNTY OF Norfolk

  	
  )

  	
   

  

 

Before me,
[                                   ],
a Notary Public, on this day personally appeared
[                                   ]
as
[                                   ]
of
[                                   ],
a [                                   ],
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same for the purposes
and consideration therein expressed.

 

Given under my hand and official seal this
[                                   ]
day of
[                                   ],
[      ], A.D.

 

	
   

  	
   

  
	
  (SEAL)
  Notary Public

  	
   

  	
   

  

 

	
  STATE OF [CALIFORNIA)

  	
   

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  COUNTY OF [LOS
  ANGELES)

  	
   

  	
   

  

 

Before me,
[                                   ],
a Notary Public, on this day personally appeared
[                                   ]
as [                                   ]
of AIG Global Investment Corp., a New Jersey corporation, investment advisor
for
[                                   ],
a
[                                   ]corporation,
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same for the purposes
and consideration therein expressed.

 

Given under my hand and official seal this
[        ] day of
[                                   ],
[      ], A.D.

 

	
   

  	
   

  
	
  (SEAL)
  Notary Public

  	
   

  	
   

  

 

8

 

	
  STATE OF Massachusetts

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  COUNTY OF Suffolk

  	
  )

  	
   

  

 

Before me,
[                                   ],
a Notary Public, on this day personally appeared
[                                   ]
as [                                   ]
of [                                   ],
a
[                                   ],
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same for the purposes
and consideration therein expressed.

 

Given under my hand and official seal this
[      ] day of
[                                   ],
[      ], A.D.

 

 

	
   

  	
   

  
	
  (SEAL)
  Notary Public

  	
   

  	
   

  

 

9

 

Exhibit A

 

Property Description

 

LOTS 12 and 13

 

The
land with the buildings and other improvements thereon situated in the Town of
Needham, County of Norfolk and Commonwealth of Massachusetts, known as and
numbered 115-119 Fourth Avenue (“Lot 12 and 13”) described as follows:

 

Beginning
at the Northeasterly corner of lot 13 at Fourth Avenue thence:

 

S
35°-O1'-52" E Four hundred and thirty-six and 00/100 Feet (436.00'), by
two (2) courses; the first course measuring One hundred sixty-six, and
46/100 (166.46') feet and the second course measuring Two hundred sixty-nine
and 54/100 (269.54') feet

 

S
54°-58'-08" W Three hundred and seventy five and 00/100 Feet (375.00')

 

N
35°-01'-52" W One hundred and fifty four and 27/100 Feet (154.27')

 

N
25°-50'- 13" W Two hundred eighty-five and 48/100 Feet (285.48'), by two (2) courses;
the first course measuring One Hundred sixteen and 85/100 (116.85') feet, and
the second course measuring One hundred sixty-eight and 63/100 (168.63') feet

 

N
54°-58'-08" E Three hundred and twenty nine and 39/100 Feet (329.39') to
the point of beginning.

 

Lots
12 and 13 are shown on a plan drawn by Cheney Engineering Co. Inc., Surveyors,
dated December 8, 1965, as approved by the Land Court, filed in the Land
Court as No. 29185C, a copy of a portion of which is filed with the Land
Court with Certificate No. 86939, Page 435.

 

 

EXHIBIT E

FORM OF NOTICE OF LEASE

 

NOTICE OF LEASE AND AMENDMENT TO LEASE

 

Notice is hereby given, pursuant to the provisions of Massachusetts
General Laws Chapter 183, Section 4, of the following Lease, as the same
has been amended by a First Amendment to Lease:

 

	
  LANDLORD: 

  	
   

  	
  DIV Needham
  115 LLC, as successor in interest to Fourth Avenue Ventures Limited
  Partnership

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  AVANT
  Immunotherapeutics, Inc., a Delaware corporation, as successor in interest to
  T Cell Sciences, Inc.

  
	
   

  	
   

  	
   

  
	
  DATE OF
  EXECUTION:

  	
   

  	
  May 1,
  1996

  
	
   

  	
   

  	
   

  
	
  DATE OF
  EXECUTION OF FIRST AMENDMENT

  	
   

  	
                       ,
  2005

  
	
   

  	
   

  	
   

  
	
  TO LEASE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DESCRIPTION
  OF LEASED PREMISES:

  	
   

  	
  35,189
  rentable square feet in the building situated at 115-119 Fourth Avenue,
  Needham, Massachusetts and more particularly shown on Exhibit A to the
  Lease. For legal description of the Property, see Exhibit A attached to
  this Notice of Lease.

  
	
   

  	
   

  	
   

  
	
  TERM:

  	
   

  	
  The period
  from May 1, 1996 through April 30, 2017.

  
	
   

  	
   

  	
   

  
	
  EXTENSION
  RIGHTS:

  	
   

  	
  One (1) option
  to extend the Term for an additional five (5) years.

  

 

The foregoing is a summary of certain terms of the Lease for purposes
of giving notice thereof, and shall not be deemed to modify or amend the terms
of the Lease.

 

For Landlord’s title to the Property, see deed of
                           to
Landlord dated                              recorded
with the Norfolk Registry of Deeds in
Book               ,
Page            .

 

 

Executed as a sealed instrument on this
        day
of                        ,
2005.

 

	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DIV NEEDHAM 115 LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AVANT
  IMMUNOTHERAPEUTICS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Una S. Ryan, PhD

  
	
   

  	
   

  	
  Title:

  	
  President
  and CEO

  

 

3

 

	
  COMMONWEALTH OF
  MASSACHUSETTS

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

On this      day
of                     ,
2005, before me, the undersigned notary public, personally appeared                           ,
proved to me through satisfactory evidence of identification, consisting
of                                                                            ,
to be the person whose name is signed on the preceding or attached document and
acknowledged to me that (he)(she) signed it voluntarily for its stated purpose,
as                                              for
DIV Needham 115 LLC,

 

	
   

  	
   

  
	
   

  	
  (Official
  Signature and Seal of Notary)

  My Commission Expires:

   

  

 

	
  COMMONWEALTH
  OF MASSACHUSETTS

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

On this        day of
               ,
2005, before me, the undersigned notary public, personally appeared Una S. Ryan, PhD,
proved to me through satisfactory evidence of identification, consisting
of                                                             ,
to be the person whose name is signed on the preceding or attached document and
acknowledged to me that she signed it voluntarily for its stated purpose, as
President and CEO for AVANT Immunotherapeutics, Inc., a Delaware
corporation,

 

	
   

  	
   

  
	
   

  	
  (Official
  Signature and Seal of Notary)

  My
  Commission Expires:

  

 

4

 

Exhibit A

 

Property Description

 

LOTS 12 and 13

 

The land with the buildings and other improvements thereon situated in
the Town of Needham, County of Norfolk and Commonwealth of Massachusetts, known
as and numbered 115-119 Fourth Avenue (“Lot 12 and 13”) described as follows:

 

Beginning at the Northeasterly corner of lot 13 at Fourth Avenue
thence:

 

S 35°-O1'-52" E Four hundred and thirty-six and 00/100 Feet
(436.00'), by two (2) courses; the first course measuring One hundred
sixty-six, and 46/100 (166.46') feet and the second course measuring Two
hundred sixty-nine and 54/100 (269.54') feet

 

S 54°-58'-08" W Three hundred and seventy five and 00/100 Feet
(375.00')

 

N 35°-01'-52" W One hundred and fifty four and 27/100 Feet (154.27')

 

N 25°-50'-13" W Two hundred eighty-five and 48/100 Feet (285.48'),
by two (2) courses; the first course measuring One Hundred sixteen and
85/100 (116.85') feet, and the second course measuring One hundred sixty-eight and
63/100 (168.63') feet

 

N 54°-58'-08" E Three hundred and twenty nine and 39/100 Feet
(329.39') to the point of beginning.

 

Lots 12 and 13 are shown on a plan drawn by Cheney Engineering Co.
Inc., Surveyors, dated December 8, 1965, as approved by the Land Court,
filed in the Land Court as No. 29185C, a copy of a portion of which is
filed with the Land Court with Certificate No. 86939, Page 435.

 

 

EXHIBIT F

 

Intentionally Omitted.

 

 

EXHIBIT G

OPERATING EXPENSE EXCLUSIONS

 

In no event
shall Operating Expenses include any of the following:

 

(a)                                  Salaries and bonuses
of officers and executives of Landlord and administrative employees above the
grade of property manager or building supervisor, Landlord’s general overhead,
and direct and indirect compensation and benefits of any employee to the extent
that the same is not fairly allocable to the work or service provided by such
employee to the Building of the Property;

 

(b)                                 Any management fee in
excess of five percent (5%) of gross rents;

 

(c)                                  Costs of selling,
syndicating, financing, refinancing, mortgaging or hypothecating any of
Landlord’s interest in all or any part of the Building or Property, including,
but not limited to, points and commissions in connection therewith, interest on
debt or principal amortization payments or any other payments on any financing
or refinancing, including under any ground lease;

 

(d)                                 Any fees, costs and
expenses incurred in procuring or attempting to procure tenants or entering
into leases or other occupancy arrangements, including, but not limited to,
brokerage commissions, finder’s fees, legal fees and expenses, space planners’
fees, entertainment costs, travel expenses, and costs of advertising or
promotion of the Building or the Property or public relations, and the costs of
leasehold improvements, alterations and decorations done to leasable areas of
the Building. Notwithstanding the foregoing but subject to the limits set forth
in this Exhibit G, operating
costs and expenses allocable to the parking areas on adjacent property to the
Property which are utilized by the tenants of the Property shall be included in
the definition of Operating Expenses to the same extent as if such parking
areas where located on the Property;

 

(e)                                  Any cost included in
Operating Expenses representing an amount paid to Landlord or to a person,
firm, corporation or other entity affiliated with or related to Landlord which
is in excess of the amount which would have been paid to a third party on an
arms-length basis in the absence of such affiliation or relationship;

 

(f)                                    Notwithstanding the
terms of clause (v) of Section 5.2, the costs of any capital repairs,
capital improvements or capital replacements (including, without limitation,
replacements of the roof, structural elements and building systems serving the
Building) except that if, during the Term of the Lease, Landlord shall make
capital expenditures that is (are) either (i) intended to result in a
savings in or reduction of Operating Expenses; or (ii) is (are) necessary
to comply with any applicable laws, codes, orders or ordinances enacted or
first effective after the Extension Term Commencement Date; or (iii) any
capital expenditure incurred in connection with the commercially reasonable
operation, maintenance, replacement or repair of the Building or the Property
but not strictly for the redecoration or aesthetic improvement thereof, the
total cost of which is not properly

 

 

includable in Operating Expenses for the year in which it was made,
there shall nevertheless be included in such Operating Expenses for the
applicable year during the Term in which it was made and in Operating Expenses
for each succeeding year during the Term the annual charge off (as defined
below) of such capital expenditure. Annual charge-off shall be determined by dividing
the original capital expenditure plus an interest factor, reasonably determined
by Landlord, as being the interest rate then being charged for long-term
mortgages by institutional lenders on like properties within the locality in
which the Property is located, by the number of years of useful life of the
capital expenditure; and the useful life shall be determined reasonably by
Landlord in accordance with Landlord’s commercially reasonable practices in
effect at the time of making such expenditure;

 

(g)                                 Any costs necessary to
cure any violation of any law, ordinance or regulation existing as of the
commencement date of this Lease, unless such condition was caused by Tenant and
any costs necessary to remediate any environmental condition on or about the
Building or the Property, including the removal of, or other steps taken with
respect to, asbestos located in the Building or on the Property, including the
removal of, or other steps taken with respect to, asbestos located in the
Building or on the Property, unless such condition was caused by Tenant, and
costs (including, without limitation, attorneys’ fees and disbursements)
incurred in connection with any judgment, settlement or arbitration award
resulting from any tort liability of Landlord;

 

(h)                                 Legal or other
professional fees or expenses relating to leasing, financing, tenant disputes
or lease enforcement, disputes with employees or Building management, or
disputes with other property owners, or other services not related to the
normal maintenance, cleaning, repair, or protection of the Building and/or
Property; and

 

(i)            Estate,
succession, inheritance, profit, use, occupancy, gross receipts, rental,
capital gains and transfer taxes imposed upon Landlord.

 

E-2Exhibit 10.41

 

SECOND AMENDMENT TO LEASE

 

This SECOND AMENDMENT TO LEASE (this “Amendment”)
is made as of the 4th day of November, 2005,
(the “Effective Date”) by
and between MASSACHUSETTS DEVELOPMENT FINANCE AGENCY, a body politic and
corporate and a public instrumentality of the Commonwealth of Massachusetts
pursuant to Massachusetts General Laws, Chapter 23G, with an address of 160
Federal Street, Boston, Massachusetts 02110 (“Landlord”)
and AVANT IMMUNOTHERAPEUTICS, INC., a Delaware corporation, with an address of
119 Fourth Avenue, Needham, Massachusetts (“Tenant”).

 

R E C I T A L S

 

WHEREAS, Landlord and Tenant entered into a certain lease dated
effective December 22, 2003 and amended by that certain First Amendment to
Lease (the “First Amendment”) dated
March 17, 2005 (as so amended, collectively, the “Lease”) of certain premises consisting of
approximately 11,827 rentable square feet of space (the “Existing Premises”) in the building (the “Building”) located at 151 Martine Street,
Fall River, Massachusetts (the “Property”)
in the South Coast Research & Technology Park (the “Park”);

 

WHEREAS, the original premises demised by the Lease consists of 11,756
rentable square feet in the Building and the Additional Space (as defined in
the First Amendment) demised by the First Amendment is hereby agreed to be 71
rentable square feet.

 

WHEREAS, Landlord and Tenant wish to amend the Lease to
(i) provide for the addition of approximately 2,487 rentable square feet
on the second (2nd) floor in the Building as shown on the floor plan
attached hereto as Exhibit A-2 (the “Expansion Premises”); and (ii) amend certain other terms
of the Lease.

 

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

 

1.             Capitalized
Terms. Unless otherwise defined herein, all capitalized terms used in this
Amendment shall have the meanings ascribed to them in the Lease, and all
references in the Lease to the “Lease” or “this Lease” or “herein” or
“hereunder” or similar terms or to any section thereof shall, after the
Effective Date, mean the Lease, or such section thereof, as amended by this
Amendment.

 

2.             Demise of
Expansion Premises. Commencing on the date Landlord delivers possession of
the Expansion Premises to Tenant vacant and free of all occupants and with the
Landlord’s Expansion Premises Work (as hereinafter defined) substantially
complete (the “Expansion Premises
Commencement Date”), Landlord does hereby lease to Tenant and Tenant does
lease from Landlord the Expansion Premises to have and to hold for the
remainder of the Lease Term as set forth in the Lease. Promptly following the
completion of the Landlord’s Expansion Premises Work, Landlord shall notify
Tenant of the Expansion Premises Commencement Date (which date shall be no
earlier than five (5) days after Landlord’s notice to Tenant) and, unless
Tenant in good faith disputes the same, Landlord and Tenant will, within five
(5) business days after Landlord’s notice, will execute a commencement date
letter in 

 

 

commercially reasonable form to confirm the
Expansion Premises Commencement Date. Except as otherwise expressly provided
herein, Tenant’s lease of the Expansion Premises shall be on all of the terms
and conditions of the Lease (including, without limitation, extension rights of
Tenant for Extension Terms) and the term of the Lease with respect to the
Expansion Premises shall be coterminous with the Original Term (and, if
exercised, Extension Terms) of the Lease for the Existing Premises. As of the
Expansion Premises Commencement Date, all references in the Lease to (i) the
“Premises” and/or the premises demised by the Lease shall mean the Existing
Premises and the Expansion Premises collectively as shown on the Exhibit A
to the Lease, Exhibit A-1 attached to the First Amendment to Lease,
and on Exhibit A-2 attached to this Amendment; (ii) the “Tenant’s
Proportionate Fraction” shall mean 24.78% which is calculated based upon the
rentable square footage of the Premises less the 71 rentable square feet of the
Additional Space described in the First Amendment; and (iii) the “Premises
Square Footage” shall mean 14,314 rentable square feet.

 

3.             Fixed Rent. Tenant
shall pay to Landlord Fixed Rent with respect to the Expansion Premises in the
manner and at the times set forth in the Lease, in the amounts set forth below:

 

	
  TERM

  	
   

  	
  ANNUAL FIXED RENTAL RATE FOR THE 

  EXPANSION PREMISES

  	
   

  
	
  From the Expansion Premises Commencement Date through
  December 31, 2008.

  	
   

  	
  $37,305.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2009 through the expiration of the Lease Term,
  as the same may be extended.

  	
   

  	
  Calculated in the same fashion as for the Existing Premises under
  subclause (iii) of the definition of Annual Fixed Rental Rate in
  Section 1.1 of the Existing Lease, except that only the Annual Fixed
  Rental Rate for the Expansion Premises shall be used in such calculation, and
  the first day after the Second Rent Period will be January 1, 2009.

  	
   

  
					

 

4.             Condition;
Landlord’s Work. Except for the performance of “Landlord’s Expansion
Premises Work” (as hereinafter defined), the Expansion Premises are being
leased in their AS IS condition as of the date of this Lease. Landlord shall,
at Landlord’s sole cost and expense, deliver the Expansion Premises to Tenant
on the applicable Commencement Date therefor (i) vacant, broom-clean, and with
all debris and personal property removed therefrom, (ii) with the demising
walls and suite entry door installed in the locations shown on Exhibit A-2 attached hereto and with
all such walls primed and ready for painting, and (iii) with the electrical
installed to the edge of the Expansion Premises and the two Building-standard
HVAC VAV boxes mounted within the Expansion Premises (collectively, the “Landlord’s Expansion Premises Work”). Tenant
acknowledges that the portion of Landlord’s Expansion Premises Work described
in (ii) of this Paragraph 4 has been completed as of the date hereof.

 

2

 

5.             Tenant Expansion
Premises Work; Tenant Improvement Allowance. Landlord acknowledges that
Tenant desires to perform certain alterations and improvements to the Expansion
Premises to prepare the same for Tenant’s occupancy (the “Tenant Expansion Premises Work”). Landlord
shall pay to Tenant an allowance in the amount of Forty-Nine Thousand Seven
Hundred Forty and 00/100 Dollars ($49,740.00) (the “Improvement Allowance”) towards the costs of performing the
Tenant Expansion Premises Work. The Improvement Allowance shall be paid by
Landlord to Tenant within thirty (30) days following receipt by Landlord of (i)
detailed invoices supporting purchases and installation costs, which invoices
shall reasonably itemize such costs on a line item basis, (ii) evidence of such
installation, (iii) lien waivers from the contractors installing the same, (iv)
an AIA reimbursement form signed by Tenant’s contractor and architect, if any,
and (v) other items reasonably requested by Landlord (collectively, “Allowance Disbursement Request”). Each
Allowance Disbursement Request shall be subject to Landlord’s approval. Tenant
shall perform the Tenant Expansion Premises Work in accordance with the terms
of the Lease, including, without limitation, Section 10.4 of the Lease, except
that Landlord shall not require Tenant to post a bond or other security for the
Tenant Expansion Premises Work. As part of the Tenant Expansion Premises Work,
Tenant shall, at Tenant’s cost and expense but subject to reimbursement from
the Improvement Allowance, install a separate meter to measure electricity
usage in the Expansion Premises. Landlord and Tenant acknowledge that the
Expansion Premises will not use any gas or water services in the Building. In
the event that, during the Lease Term, gas or water service is supplied to the
Expansion Premises, Tenant shall, at Tenant’s cost and expense, install a
separate meter or submeter to measure the gas and/or water usage in the
Expansion Premises.

 

6.                                       Utility
Payments. From and after the Expansion Premises Commencement Date, Tenant
shall be responsible for the payment of all utilities used and consumed in the
Expansion Premises directly to the utility companies if the Expansion Premises
are separately metered or to Landlord if the Expansion Premises is sub-metered
for such utility usage. Tenant shall pay the utility company directly for all
telephone and telecommunications service to the Expansion Premises.

 

7.                                       Data
Room Cabinet; Compressed Air Unit.

 

(a)           Landlord hereby
agrees that Tenant may install a cabinet with a lock thereon in the first floor
communication closet of the Building for containment of Tenant’s
telecommunications and data connections and equipment presently located therein.
Landlord has received and approved Tenant’s plans for such work and the
schedule for the performance of such installation shall be subject to
Landlord’s prior approval, which approval will not be unreasonably withheld or
delayed.

 

(b)           Landlord
acknowledges that Tenant has purchased and installed a compressed air unit in
and serving the Existing Premises. Landlord agrees that such compressed air
unit is the property of Tenant and may be removed by Tenant at the expiration
or earlier termination of the term of the Lease and that any damage to the
Existing Premises or the Building caused by such removal shall be repaired by
Tenant. Landlord and Tenant acknowledge that the Expansion Premises does not
utilize the compressed air supply of the Building.

 

3

 

8.                                       Amendment
of Terms; Inapplicable Provisions. From and after the Effective Date, the
following provisions of the Lease shall be amended as set forth below:

 

(a)           Exhibit H of the Lease shall be
amended to include the following:

 

“27. Costs to supply compressed air to the leasable areas of the
Building, provided, however, that in the event Tenant utilizes the Building’s
compressed air unit(s) (the “Building CA
System”) for the supply of compressed air to the Premises, then the
cost of such service shall be included in the common area maintenance expenses.
Notwithstanding the foregoing, if only the Existing Premises (as such term is
defined in the Second Amendment to Lease) utilizes the Building CA System, then
Tenant will only be responsible to pay 20.45% of the common area maintenance
expenses associated with the Building CA Systems and if only the Expansion
Premises (as such term is defined in the Second Amendment to Lease) utilizes
the Building CA System, then Tenant will only be responsible to pay 4.33% of
such costs.”

 

(b)           Sections 4.2 and 4.3
of the Lease shall not be applicable to the Expansion Premises or the Tenant
Expansion Premises Work;

 

(c)           Section 14.1 of the
Lease shall be amended to delete the name “Michael Furlong” and insert in place
thereof the name “Dr. Una S. Ryan;” and

 

(d)           Exhibit G of
the Lease is hereby replaced by the revised Exhibit G attached to this
Amendment, and all references to the “North Parking Areas” under the Lease
shall be deemed to refer to the parking areas shown as the “Primary Parking
Area for 151 Martine Street” on the revised Exhibit G attached hereto. Accordingly,
Section 14.14 of the Lease shall be amended by deleting the last sentence
thereof and by substituting therefor the following: “As used in this Lease, the
term “North Parking Areas” shall mean those areas shown on Exhibit G
attached hereto as the “Primary Parking Area for 151 Martine Street.”

 

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

 

10.                                 Brokerage.
Landlord and Tenant each represent and warrant to the other that neither of
them has employed or dealt with any broker, agent or finder other than Whelan
Associates, LLC (“Landlord’s Broker”)
in carrying on the negotiations relating to this Amendment to the Lease. Tenant
shall indemnify and hold Landlord harmless from and against any claim or claims
for brokerage or other commissions asserted by any broker, agent or finder
(other than Landlord’ s Broker) engaged by Tenant or with whom Tenant has dealt.
Similarly, Landlord shall indemnify and hold Tenant harmless from and against
any claims asserted by any broker, agent or finder engaged by Landlord or with
whom Landlord has dealt. The representations and warranties contained in this
Section 11 shall survive any termination of the Lease. As between Tenant
and Landlord, Landlord shall be responsible to pay any brokerage 

 

4

 

commission that may be due to Landlord’s
Broker in connection with the transactions described herein.

 

11.                                 Governing
Law; Interpretation; and Partial Invalidity. This Amendment shall be
governed and construed in accordance with the laws of the Commonwealth of
Massachusetts. If any term of this Amendment, or the application thereof to any
person or circumstances, shall to any extent be invalid or unenforceable, the
remainder of this Amendment, or the application of such term to persons or
circumstances other than those as to which it is invalid or unenforceable,
shall not be affected thereby, and each term of this Amendment shall be valid
and enforceable to the fullest extent permitted by law. The titles for the
paragraphs are for convenience only and not to be considered in construing this
Amendment. This Amendment contains all of the agreements of the parties with
respect to the subject matter hereof, and supersedes all prior dealings between
them with respect to such subject matter. No delay or omission on the part of
either party to this Amendment in requiring performance by the other party or
exercising any right hereunder shall operate as a waiver of any provision
hereof or any rights hereunder, and no waiver, omission or delay in requiring
performance or exercising any right hereunder on any one occasion shall be
construed as a bar to or waiver of such performance or right on any future
occasion.

 

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

 

[Signatures Commence on Following Page]

 

5

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
  MASSACHUSETTS DEVELOPMENT FINANCE

  AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Richard Henderson

  	
   

  
	
   

  	
   

  	
  Name:  Richard Henderson

  
	
   

  	
   

  	
  Title:  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AVANT IMMUNOTHERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Una S. Ryan

  	
   

  
	
   

  	
   

  	
  Name:  Una S. Ryan, PhD

  
	
   

  	
   

  	
  Title:  President and CEO

  
						

 

6

 

Exhibit A-2 – Plan
of Expansion Premises

 

[Floor Plan]

 

A-1-1

 

Exhibit G – New Plan
Showing “North Parking Areas”

 

[Drawing]

 

A-1-1

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