Document:

Exhibit
10.2

 

Allstate Life Insurance Company

Loan No. 122360

 

MORTGAGE
NOTE

 

	
  $24,750,000

  	
   

  	
  Mesa, Arizona

  September 8, 2003

  

 

1.             Payment of Principal and Interest.  FOR VALUE RECEIVED, AMERIVEST MESA INC., an Arizona corporation (“Maker”), hereby
promises to pay to the order of ALLSTATE LIFE INSURANCE COMPANY, an Illinois
corporation, and any subsequent holder of this Note (“Holder” or “Holders”), in
the manner hereinafter provided, the principal amount of TWENTY-FOUR MILLION SEVEN HUNDRED FIFTY
THOUSAND DOLLARS ($24,750,000), together with interest on the
outstanding principal balance from the date of the initial disbursement (for
purposes of this Note, “disbursement” means the date funds are wire transferred
from Holder’s account) of all or a part of the principal of this Note
(“Disbursement Date”) until maturity at the rate of five and 25/100 percent (5.25%) per annum (“Contract Rate”) as
follows:

 

(a)                                  on
the Disbursement Date, interest only, in advance, accruing from the
Disbursement Date to October 4, 2003, both inclusive; and

 

(b)                                 in
arrears, on the fifth day of November, 2003 and on the fifth day of each month
thereafter until this Note matures, principal and interest in consecutive equal
installments of One Hundred
Forty-Eight Thousand Three Hundred Thirteen and 81/100 Dollars ($148,313.81) (the
initial payment and each subsequent payment shall each hereinafter be referred
to as “Monthly Payment”), which amount is calculated using an amortization
period of three hundred (300) months; and

 

(c)                                  on
October 5, 2010, the entire unpaid principal amount and any interest
accrued but remaining unpaid and all other sums due under this Note.

 

Except for the interest payable under Paragraph (a) above, interest
shall be payable in arrears and calculated on the basis of a 360 day year
containing twelve 30 day months.  All
such payments on account of the indebtedness evidenced by this Note shall be
first applied to interest accrued on the unpaid principal amount and the
remainder toward reduction of the unpaid principal amount.

 

2.             Payment Information.  All payments required to be made hereunder
shall be made during regular business hours to Holder at its office c/o
Commercial Mortgage Division, Allstate Plaza South, Suite G5C, 3075 Sanders
Road, Northbrook, Illinois 60062, Attention: Servicing Manager, with reasonably
sufficient information to identify the source and application of such payment
to Holder’s Loan #122360, or at such other place as Holder may from time to
time designate in writing.  All payments
shall be made

 

 

in currency of the United States of America without presentment or
surrender of this Note.  Payments made
directly to Holder shall be made by transferring immediately available federal
funds by bank wire or interbank transfer for the account of Holder.  Any payment of principal or interest
received after 1:00 p.m., Chicago time, shall be deemed to have been received
by Holder on the next business day and shall bear interest accordingly.  If and so long as Holder directs Maker to
make payments to a servicing agent, then payments may be made by check.  Payments made by check will be deemed made
when received provided that good funds for such check are available upon
presentation of such check by Holder or the servicing agent.

 

3.             Security For Note.  The payment of this Note and all other sums
due Holder is secured by: (a) Deed of Trust, Assignment of Leases, Rents and
Contracts, Security Agreement and Fixture Filing (“Mortgage”), of even date
herewith, granted by Maker, as Trustor, to a trustee in favor of Holder, as
beneficiary, covering certain real property, the improvements thereon and
certain personal property situated in the County of Maricopa, State of Arizona
and described in the Mortgage (“Property”), and (b) those certain instruments
of indebtedness and security described as “Related Agreements” in the
Mortgage.  Except as otherwise defined
herein, all of the defined terms contained in the Mortgage and the Related
Agreements are hereby incorporated herein by express reference.

 

4.             Late Charges.  If any Monthly Payment required under this
Note is not paid in full on or before the ninth day of the month in which such
payment is due, Maker acknowledges that Holder will incur extra expenses for
the handling of the delinquent payment and servicing the indebtedness evidenced
hereby, and that the exact amount of these extra expenses is extremely
difficult and impractical to ascertain, but that a charge of five percent (5%)
of the amount of the delinquent payment (“Late Charge”) would be a fair
approximation of the expense so incurred by Holder.  If applicable law requires a lesser charge, however, then the
maximum charge permitted by such law may be charged by Holder for said purpose.  Therefore, Maker shall, in such event,
without further notice, and without prejudice to the right of Holder to collect
any other amounts provided to be paid hereunder or under the Mortgage, the
Related Agreements or any other instrument executed for purposes of further
securing payment of the obligations evidenced by this Note, or to declare an
Event of Default, as defined below, pay to Holder immediately upon demand the
Late Charge to compensate Holder for expenses incurred in handling delinquent
payments.

 

5.             Interest Payable Upon Default.   If there occurs an Event of Default, under
this Note or the Mortgage or under any Related Agreement, then the unpaid
principal amount of this Note, and all accrued and unpaid interest thereon
shall bear interest at the Contract Rate plus five percent (5%) per annum
compounded monthly (“Default Rate”) from the date of expiration of any
applicable cure or grace period until such time, if any, as the Event of
Default is cured and the Mortgage and this Note are reinstated as permitted by
applicable law, or otherwise until such time as the unpaid principal amount of
this Note and all other indebtedness evidenced by this Note are fully repaid,
whichever is earlier.

 

2

 

6.             Events of Default.  An “Event of Default” shall exist under this
Note:

 

(a)           in the event Maker
shall fail to make any payment due under this Note, other than the final
payment and Prepayment Premium (defined herein), on or before the ninth day of
the month in which such payment is due;

 

(b)           in the event Maker
shall fail to make the final payment or the Prepayment Premium when such
payment is due; or,

 

(c)           if there shall exist an
“Event of Default” (as defined therein) under the Mortgage or any of the
Related Agreements.

 

7.             Additional Payments.  The additional payments called for under
Paragraphs 4 and 5 shall be in addition to, and shall in no way limit, any
other rights and remedies provided for in this Note, the Mortgage, any Related
Agreements, or otherwise provided by law.

 

8.             Payment of Taxes and Expenses.

 

(a)           Maker further promises
to pay to Holder, immediately upon written notice from Holder:  (i) 
all recordation, transfer, stamp, documentary or other fees or taxes
levied on Holder (exclusive of Holder’s income taxes) by reason of the making
or recording of this Note, the Mortgage or any of the Related Agreements,
and  (ii)  all intangible property taxes levied upon any Holder of this Note
or mortgagee under the Mortgage or secured party under the Related Agreements.

 

(b)           Maker further promises
to pay to Holder, immediately upon written notice from Holder, all actual
costs, expenses, disbursements, escrow fees, title charges and reasonable legal
fees and expenses incurred by Holder and its counsel in connection with: (i)
the collection, attempted collection, or negotiation and documentation of any
settlement or workout of any payment due hereunder, and (ii) any suit or
proceeding whatsoever in regard to this Note or the protection or enforcement
of the lien of any instrument securing this Note, including, without limitation,
in any bankruptcy proceeding or judicial or nonjudicial foreclosure
proceeding.  It is the intent of the
parties that Maker pay all expenses and reasonable attorneys’ fees incurred by
Holder as a result of Holder’s entering into the loan transaction evidenced by
this Note.

 

9.             Prepayment.  Maker is prohibited from prepaying this Note
until March 5, 2007 (the “No-Prepayment Period”).  Subsequent to the No-Prepayment Period, at
any time with thirty (30) days prior written notice to Holder, specifying the
date of prepayment, Maker will have the privilege of prepaying the outstanding
principal amount together with any accrued but unpaid interest, any other sums
secured by the Mortgage and the Related Agreements, and a prepayment premium
(“Prepayment Premium”) equal to the greater of:

 

(a)           1% of the principal
amount prepaid, or

 

(b)           the yield maintenance
payment calculated as follows:

 

3

 

If
the Prevailing Interest Rate (as hereinafter defined) is less than the Contract
Rate, the yield maintenance payment shall be the remainder of  (x) minus 
(y)  where  “(x)” 
is the present value of all unpaid installments of principal and
interest due under this Note from the date of prepayment to and including the
original maturity date of this Note, discounted at the Prevailing Interest
Rate, and  “(y)”  is the outstanding principal balance of this
Note as of the prepayment date.  The
term “Prevailing Interest Rate” as used herein shall mean the yield to maturity
on a United States Treasury Bond or Treasury Note selected by Holder having a
maturity date as near as possible to the original maturity date of this Note
and an “ask” price, as close as possible to par (as published two weeks prior
to the specified date of prepayment in The Wall Street Journal or similar
publication or available from the Federal Reserve Bank of New York), less the
Basis Point Adjustment as computed in accordance with Exhibit A attached
hereto to convert the monthly payments to a semi-annual equivalent.

 

No
Prepayment Premium shall be due on the principal balance prepaid within the
thirty (30) day period prior to the original maturity date of this Note.  Written notice of Maker’s election to make a
prepayment in full of this Note shall be given in the manner provided for
notices under the Mortgage.  Partial
prepayment of the outstanding principal amount of this Note shall not be
permitted except in accordance with the terms of the Mortgage.  In the event of such a permitted partial
prepayment, the Prepayment Premium calculated in this Paragraph 9 shall be
prorated based on the amount of the partial prepayment relative to the then
current outstanding principal balance of this Note.

 

Maker
acknowledges that Holder:

 

(a)           has advanced the
amounts evidenced by this Note with the expectation that such amounts would be
outstanding for a period at least equal to the No-Prepayment Period;

 

(b)           would not have been
willing to advance such amounts on these terms for a shorter period of time;

 

(c)           in making the loan
evidenced by this Note, is relying on Maker’s creditworthiness and its
agreement to pay in strict accordance with the terms set forth in this Note;
and

 

(d)           would not make the loan
without full and complete assurance by Maker of its agreement not to prepay all
or a part of the principal of this Note except as expressly permitted herein
and in the Mortgage.  Maker has been
advised and acknowledges that Holder is relying on the receipt of payments
under this Note to, among other things, match and support its obligations under
contracts entered into by Holder with third parties and that in the event of a
prepayment, Holder could suffer loss and additional expenses which are
extremely difficult and impractical to ascertain.  Accordingly, it is the express intent of Maker and Holder that
(i) Maker shall have no right to prepay this Note during the No-Prepayment
Period, (ii) any prepayment of this Note during the No-Prepayment Period shall
only occur in the event Holder accelerates payment under this Note or as otherwise
set forth in the Mortgage, (iii) any prepayment

 

4

 

described in foregoing clause (ii) shall (unless otherwise expressly
permitted in the Mortgage) require the payment of a Prepayment Premium
calculated as provided for hereinabove; and (iv) to the extent permitted by
applicable law, Maker has waived, and hereby waives, any right to prepay this
Note except as expressly provided in the Mortgage or this Note.  In the event, notwithstanding the foregoing
express intent of Maker and Holder and the express waiver by Maker of any right
to prepay this Note, that the applicable law of the jurisdiction in which the
Property is located permits Maker to prepay this Note during the No-Prepayment
Period, then the Prepayment Premium described in clause (iii) above shall be
paid to Holder as a condition to any such prepayment.

 

Maker expressly acknowledges that, pursuant to the provisions of this
Note and except as otherwise provided in this Note or the Mortgage, Maker has no
right to prepay this Note in whole or in part. 
In the event any prepayment is required or expressly permitted, Maker
shall be liable for the payment of the Prepayment Premium unless expressly
stated otherwise in the Mortgage. 
Furthermore, Maker waives any rights it may have under any applicable
state laws as they relate to any prepayment restrictions contained in this
Paragraph 9 or otherwise contained in this Note and expressly acknowledges that
Holder has made the loan in reliance upon such agreements and waiver of Maker
and that Holder would not have made the loan without such agreements and waiver
of Maker.  Maker acknowledges that
specific weight has been given to the consideration given for such agreements, which
consideration is the granting of the loan.

 

10.           Evasion of Prepayment Premium.  Maker acknowledges that in the event of an
acceleration of payment of this Note following an Event of Default by Maker, a
tender of payment of an amount necessary to satisfy the entire indebtedness
evidenced hereby, but not including the Prepayment Premium, made at any time
prior to a foreclosure sale by Maker, its successors or assigns or by anyone on
behalf of Maker, shall be presumed to be and conclusively deemed to constitute
a deliberate evasion of the prepayment provisions hereof and shall constitute a
prepayment hereunder and shall therefore be subject to the Prepayment Premium
as calculated in accordance with this Note with the date of prepayment being
deemed the date of occurrence of the foreclosure sale or the tender of payment
of the amount necessary to pay the entire indebtedness evidenced hereby in
full, including the Prepayment Premium.

 

11.           Maker’s Covenants.  Maker agrees that:

 

(a)           this instrument and the
rights and obligations of all parties hereunder shall be governed by and
construed under the laws of the state or commonwealth in which the Property is
located;

 

(b)           the obligation
evidenced by this Note is an exempted transaction under the Truth-in-Lending
Act, 15 U.S.C. §1601, et  seq. (1982);

 

(c)           said obligation
constitutes a business loan for the purpose of the application of any laws that
distinguish between consumer loans and business loans

 

5

 

and that have as their purpose the protection of consumers in the state
or commonwealth in which the Property is located;

 

(d)           at the option of
Holder, the United States District Court for the district in which the Property
is located and any court of competent jurisdiction of the state or commonwealth
in which the Property is located shall have jurisdiction in any action, suit or
other proceeding arising out of or relating to any act taken or omitted
hereunder or the enforcement of this Note, the Mortgage and the Related
Agreements and Maker shall not assert in any such action, suit or other
proceeding that it is not personally subject to the jurisdiction of such
courts, that the action, suit or other proceeding is brought in an inconvenient
forum or that the venue of the action, suit or other proceeding is improper;

 

(e)           it hereby waives any
objections to venue; and

 

(f)            it hereby waives its
right to a trial by jury.

 

12.           Severability.  The parties hereto intend and believe that
each provision of this Note comports with all applicable local, state and federal
laws and judicial decisions.  However,
if any provision or any portion of any provision contained in this Note is held
by a court of law to be invalid, illegal, unlawful, void or unenforceable as
written in any respect, then it is the intent of all parties hereto that such
portion or provision shall be given force to the fullest possible extent that
it is legal, valid and enforceable, that the remainder of this Note shall be
construed as if such illegal, invalid, unlawful, void or unenforceable portion
or provision was not contained therein, and the rights, obligations and
interests of Maker and Holder under the remainder of this Note shall continue
in full force and effect.

 

13.           Usury Laws.  Maker agrees to pay an effective rate of
interest which is the stated rate provided for in this Note, plus any
additional rate of interest resulting from any charges of interest or in the
nature of interest paid or to be paid in connection with the loan evidenced by
this Note, including without limitation, any amounts paid pursuant to the
provisions of that certain Application dated July 28, 2003, from Maker to
Holder, as accepted by Holder on August 26, 2003.  All fees, charges, goods, things in action
or other sums or things of value (collectively, the “Additional Sums”) paid or
payable by Maker or reserved to Holder, whether pursuant to this Note, the
Mortgage or any Related Agreements, which, under the laws of the State of
Arizona, are considered to be interest, shall, for the purpose of any laws of
the State of Arizona which may limit the maximum amount of interest to be
charged with respect to the lending transaction evidenced by this Note, be
payable by Maker as, and shall be considered to be, additional interest, and
for such purposes only, the agreed upon and “contracted rate of interest” shall
be the Contract Rate increased to reflect the payment of such Additional Sums
as interest, which rate Maker hereby agrees to pay.  It is the intention of Maker and Holder to conform strictly to
the usury laws now or hereafter in force in the State in which the Property is
located, and in the event any interest payable under this Note, the Mortgage,
or any Related Agreement is found to be usurious, such interest shall be
subject to reduction to an amount not to exceed the maximum non-usurious amount
for

 

6

 

commercial loans allowed under the usury laws of the State in which the
Property is located as now or hereafter construed by the courts having
jurisdiction over such matters.  In the
event such interest (whether designated as interest, service charges, points,
or otherwise) does exceed the maximum legal rate, it shall be:

 

(a)           canceled automatically
to the extent that such interest exceeds the maximum legal rate;

 

(b)           if already paid, at the
option of Holder, either be rebated to Maker (and Maker hereby agrees to accept
such rebate) or credited on the principal amount of this Note; or

 

(c)           if this Note has been
prepaid in full, then such excess shall be rebated to Maker (and Maker hereby
agrees to accept such rebate).

 

14.           Acceleration.  Upon the occurrence of an Event of Default,
Holder shall have the right, without demand or notice, to declare the entire
principal amount of this Note and/or any Future Advance (as defined in the
Mortgage) then outstanding, all accrued and unpaid interest thereon and all
other sums payable under this Note, which shall include the Prepayment Premium
(calculated as provided for in Paragraph 9 hereinabove), the Mortgage or any
note evidencing any Future Advance, to be immediately due and payable and,
notwithstanding the stated maturity in this Note or any note evidencing any
Future Advance, all such sums declared due and payable shall thereupon become
immediately due and payable.  During the
existence of such Event of Default, Holder may apply payments received on any
amounts due under this Note, the Mortgage, any Related Agreement or any note
evidencing any Future Advance as Holder may determine in its sole discretion.

 

15.           Waivers by Maker.  As to this Note, the Mortgage, the Related
Agreements and any other instruments securing the indebtedness, Maker and all
guarantors, sureties and endorsers, severally waive all applicable exemption
rights, whether under any state constitution, homestead laws or otherwise, and
also severally waive diligence, valuation and appraisement, presentment for
payment, protest and demand, notice of protest, demand and dishonor and
diligence in collection and nonpayment of this Note and all other notices in
connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note (except notice of default specifically provided for
in the Mortgage and the Related Agreements). 
To the extent permitted by law, Maker further waives all benefit that
might accrue to Maker by virtue of any present or future laws exempting the
Property, or any other property, real or personal, or the proceeds arising from
any sale of any such property, from attachment, levy, or sale under execution,
or providing for any stay of execution to be issued on any judgment recovered
on this Note or in any action to foreclose the Mortgage, injunction against
sale pursuant to power of sale, exemption from civil process or extension of
time for payment.  Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue
of this Note, or any writ of execution issued thereon, may be sold upon any
such writ in whole or in part in any order desired by Holder.

 

7

 

16.           Maker Not
Released.  No delay or
omission of Holder to exercise any of its rights and remedies under this Note,
the Mortgage or any Related Agreements at any time following the happening of
an Event of Default shall constitute a waiver of the right of Holder to
exercise such rights and remedies at a later time by reason of such Event of
Default or by reason of any subsequently occurring Event of Default.  The acceptance by Holder of payment of any
sum payable hereunder after the due date of such payment shall not be a waiver
of Holder’s right to either require prompt payment when due of all other sums
payable hereunder or to declare a default for failure to make prompt
payment.  This Note, or any payment
hereunder, may be extended from time to time by agreement in writing between
Maker and Holder without in any other way affecting the liability and
obligations of Maker and endorsers, if any.

 

17.           Nonrecourse.  Except as otherwise set forth in this
section, Holder’s recourse under this Note, the Mortgage and the Related
Agreements shall be limited to and satisfied from the Property and the proceeds
thereof, the rents and all other income arising therefrom, the other assets of
Maker arising out of the Property which are given as collateral for this Note,
and any other collateral given in writing to Holder as security for repayment
of this Note (all of the foregoing are collectively referred to as the (“Loan
Collateral”).  Notwithstanding the
preceding sentence:

 

(a)           Holder may, in
accordance with the terms of this Note, the Mortgage or any Related
Agreement:  (i)  foreclose the lien of the Mortgage,  (ii) 
take appropriate action to enforce this Note, the Mortgage and the
Related Agreements to realize upon and/or protect the Loan Collateral,  (iii)  name Maker as a party defendant in any action brought under this
Note, the Mortgage or the Related Agreements so long as the exercise of any
remedy is limited to the Loan Collateral and only to the extent required by
applicable law, rule, order, regulation or other legal requirement,  (iv) 
pursue all of its rights and remedies against any guarantor or surety or
master tenant, whether or not such guarantor or surety or master tenant is a
partner, member or other owner of Maker, 
and (v)  pursue all of its rights
and remedies against Maker and the indemnitors under that certain Environmental
Indemnity Agreement of even date herewith;

 

(b)           Holder may seek damages
or other monetary relief to the extent of actual monetary loss, or any other
remedy at law or in equity against Maker and the indemnitor/guarantor under
that certain Nonrecourse Exception Indemnity Agreement of even date herewith
(“Nonrecourse Indemnitor”) by reason of or in connection with  (i) 
the failure of Maker to pay to Holder, upon demand, all rents, issues
and profits of the Property to which Holder is entitled pursuant to this Note,
the Mortgage or the Related Agreements following an Event of Default,  (ii) 
any waste of the Property or any willful act or omission by Maker which
damages or materially reduces the value of the Property,  (iii) 
the failure to apply all rents, issues and profits from the Property to
the payment of operating expenses, real estate taxes, insurance, capital repair
items, and the payment of sums due and owing under this Note, the Mortgage or
the Related Agreements prior to any other expenditure or distribution by
Maker,  (iv)  the failure to account for and to turn over security deposits (and
interest required by law or agreement to be paid thereon) or prepaid rents during
the continuance of an Event of

 

8

 

Default under this Note, the Mortgage or any Related Agreements,  (v) 
the failure to timely pay real estate taxes or any regular or special
assessments affecting the Property, 
(vi)  the failure to account for
and to turn over real estate tax accruals during the continuation of a default
under this Note, the Mortgage or any Related Agreements, (vii)  the failure to maintain casualty and
liability insurance as required under the Mortgage or the Related Agreements or
to apply insurance proceeds or condemnation awards relating to the Property or
other collateral in the manner required under applicable provisions of this
Note, the Mortgage or any Related Agreements, 
(viii)  any modification,
termination or cancellation of any lease of all or any portion of the Property
without Holder’s prior written consent, if and to the extent such consent is
required under the Mortgage or the Related Agreements and if and to the extent such
modification, termination or cancellation has a material adverse effect on the
value of the Property, (ix)  a default
by Maker under any lease of all or any portion of the Property,  or 
(x) costs and expenses, including, without limitation, attorney’s fees
and transfer taxes, incurred by Holder in connection with the enforcement of
this Note, the Mortgage or the Related Agreements or a deed-in-lieu of
foreclosure; and

 

(c)           Maker and the
Nonrecourse Indemnitor shall become personally liable for payment of the
indebtedness evidenced by this Note and performance of all other obligations of
Maker under this Note, the Mortgage and the Related Agreements upon occurrence
of any  (i)  fraud or willful misrepresentation of a material fact by Maker or
the Nonrecourse Indemnitor in connection with this Note, the Mortgage or the
Related Agreements or any request for any action or consent by Holder,  (ii) 
the occurrence of any transfer of any interest in Maker or the Property
in violation of the terms of this Note, the Mortgage or the Related Agreements,
or  (iii) the incurrence by Maker of any
indebtedness in violation of the terms of this Note, the Mortgage or the
Related Agreements (whether secured or unsecured, direct or contingent), other
than unsecured debt or routine trade payables incurred in the ordinary course
of business in connection with the operation of the Property.

 

In addition, Maker and the Nonrecourse Indemnitor
shall be responsible for any costs and expenses incurred by Holder in
connection with the collection of any amounts for which Maker and the
Nonrecourse Indemnitor are personally liable under this section, including
attorneys’ fees and expenses, court costs, filing fees, and all other costs and
expenses incurred in connection therewith.

 

18.           Successors
and Assigns.  The
provisions of this Note shall be binding upon Maker and its legal
representatives, successors and assigns and shall inure to the benefit of any
Holder and its successors and assigns. 
In the event Maker is composed of more than one party, obligations
arising from this Note are and shall be joint and several as to each such
party.

 

19.           Remedies
Cumulative.  The remedies
of Holder as provided in this Note, or in the Mortgage or the Related
Agreements, and the warranties contained herein or therein shall be cumulative
and concurrent, may be pursued singly, successively or together at the sole
discretion of Holder, may be exercised as often as occasion for their exercise
shall occur and in no event shall the failure to exercise any such right or

 

9

 

remedy be construed as a waiver or release of such right or
remedy.  No remedy under this Note,
conferred upon or reserved to Holder is intended to be exclusive of any other
remedy provided in this Note, the Mortgage or any of the Related Agreements or
provided by law, but each shall be cumulative and shall be in addition to every
other remedy given under the Mortgage or any of the Related Agreements or
hereunder or now or hereafter existing at law or in equity or by statute.

 

20.           Notices.  All notices, written confirmation of wire
transfers and all other communications with respect to this Note shall be
directed as follows:  if to Holder, c/o
Commercial Mortgage Loan Division, Allstate Plaza South, Suite G5C, 3075
Sanders Road, Northbrook, Illinois 
60062, Attention:  Servicing
Manager, with a copy to Investment Law Division, Allstate Plaza South, Suite
G5A, 3075 Sanders Road, Northbrook, Illinois 
60062; if to Maker, 1780 South Bellaire Street, Suite 100, Denver,
Colorado 80222, with a copy to: Stephen R. Voelker, Esq., Jenkens &
Gilchrist, 1445 Ross Avenue, Suite 3200, Dallas, Texas 75202, or at such other
place as Holder or Maker may from time to time designate in writing.  All notices shall be in writing and shall be
(a) hand-delivered, (b) sent by United States express mail or by private
overnight courier, or (c) served by certified mail postage prepaid, return
receipt requested, to the appropriate address set forth above.  Notices served as provided in (a) and (b)
shall be deemed to be effective upon delivery. 
Any notice served by certified mail shall be deposited in the United
States mail with postage thereon fully prepaid and shall be deemed effective on
the day of actual delivery as shown by the addressee’s return receipt or the
expiration of three business days after the date of mailing, whichever is
earlier in time.

 

21.           No Oral Modification.   This Note may not be modified or discharged
orally, but only by an agreement in writing signed by the party against whom
enforcement of any waiver, modification or discharge is sought.

 

22.           Time.  Time is of the essence with regard to the
performance of the obligations of Maker in this Note and each and every term,
covenant and condition herein by or applicable to Maker.

 

23.           Captions.  The captions and headings of the paragraphs
of this Note are for convenience only and are not to be used to interpret,
define or limit the provisions hereof.

 

24.           Transfer of Note.  Holder may, at any time, sell, transfer or
assign this Note, the Mortgage and the Related Agreements, and any or all
servicing rights with respect to this Note, or grant participations in this
Note or issue mortgage pass-through certificates or other securities evidencing
a beneficial interest in this Note. 
Holder may forward to any prospective purchaser or any rating agency all
documents and information Holder now has or may acquire, as Holder determines
necessary or desirable, including, without limitation, financial information
regarding Maker, its members or other principals.

 

10

 

25.           Replacement
Note.  Upon receipt of
evidence reasonably satisfactory to Maker of the loss, theft, destruction or
mutilation of this Note, and in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory to
Maker or, in the case of any such mutilation, upon surrender and cancellation
of this Note, Maker will execute and deliver to Holder in lieu thereof, a
replacement note dated as of the date of this Note, identical in form and
substance to this Note and upon such execution and delivery all references in
the Mortgage to this Note shall be deemed to refer to such replacement note.

 

IN WITNESS WHEREOF, Maker has caused this Mortgage
Note to be duly executed as of the date first above written.

 

 

	
  WITNESS:

  	
  MAKER:

  
	
   

  	
   

  	
   

  
	
  Alexander S. Hewitt

  	
   

  	
  AMERIVEST MESA INC., an Arizona corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  John B. Greenman

  
	
   

  	
   

  	
   

  	
  John B. Greenman

  
	
   

  	
   

  	
  Its

  	
  Vice President

  
						

 

 

	
  STATE OF COLORADO

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of Denver

  	
  )

  

 

The
foregoing instrument was acknowledged before me this 8th day of September,
2003, by John B. Greenman, the Vice President of AMERIVEST MESA INC., an
Arizona corporation, on behalf of the corporation.

 

Witness
my hand and official seal.

 

 

	
   

  	
  Jean M. Gonzales

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My Commission Expires:

  	
   

  
	
   

  	
   

  
	
  April 9, 2005

  	
   

  	
   

  
			

 

11EXHIBIT 10.195

 

MASTER AMENDMENT AGREEMENT

 

This Master Amendment Agreement (the “Master
Amendment”), is entered into as of September 30, 2003 (the “Master Amendment Effective Date”), by and
between MedImmune Vaccines, Inc. (formerly
Aviron), a Delaware corporation (“MedImmune”),
and Wyeth  (formerly
known as American Home Products Corporation), a Delaware corporation acting
through its Wyeth Pharmaceuticals division (“Wyeth”).

 

Recitals:

 

A.                                    Wyeth and the predecessor-in-interest of
MedImmune entered into that certain United States License and Co-Promotion
Agreement dated as of January 11, 1999, as amended October 23, 2002
(the “U.S. Agreement”), regarding
the development, manufacture (to the extent set forth in the Supply Agreement
(as defined below)), distribution, use, marketing and co-promotion of
MedImmune’s proprietary intranasally delivered cold-adapted vaccine formulation
against influenza and influenza-associated illnesses, including otitis media
infection, known as FluMistTM or FluEnzTM (collectively, “FluMist”), in the United States and its
territories and possessions.

 

B.                                    Wyeth also has the right, pursuant to that
certain International FluMistTM License Agreement, dated as  of January 11, 1999 (the “International Agreement”), by and between
Wyeth and the predecessor-in-interest of MedImmune, to exclusively develop,
manufacture (to the extent set forth in the Supply Agreement), distribute, use,
market and sell FluMist in certain territories outside of the United States and
its territories and possessions.

 

C.                                    That certain FluMistTM Supply
Agreement between Wyeth and the predecessor-in-interest of MedImmune dated
January 11, 1999, as amended January 1, 2001 and October 23,
2002 (the “Supply Agreement”),
provides for the manufacture and supply of the Frozen Product and the Liquid
Product (as such terms are defined in the Supply Agreement) for distribution
and sale by Wyeth under the terms and conditions of the U.S. Agreement and
International Agreement.

 

D.                                    The parties desire to amend the U.S.
Agreement, the International Agreement, the Supply Agreement and the related
letter agreement executed by the parties as of October 23, 2002 (the “Letter Agreement,” and all such agreements
collectively, the “Agreements”) to
clarify the understanding and intent of the Agreements and to amend the
Agreements as detailed below.

 

In consideration of the foregoing recitals and the mutual covenants and
agreements contained in this Master Amendment, the parties hereby agree as
follows:

 

Agreement:

 

1.                                      Definitions.  All defined
terms used and not otherwise defined in this Master Amendment have the meanings
ascribed to such terms in the Agreements. 
Provisions of this Master Amendment that reference terms that are
defined in more than one Agreement will be deemed to be applicable to the
particular Agreement or Agreements that the provision amends.

 

2.                                      Forecasts; Pricing and
Payment for MedImmune-Manufactured Product.  This Section 2
supercedes conflicting provisions of each of the Agreements.  Without limiting the scope of the preceding
sentence, Sections 7.1, 7.2 and 7.3 of the Supply Agreement (set forth in the
Second

 

1

 

Amendment of the Supply Agreement) are hereby deleted (except for
Sections 7.2(b) and 7.3(b) which will survive with the amendments set forth in
the next sentence) and superceded by this Section 2.  As conforming changes,

 

(a)                                  the term “Late Doses” as used in the Supply
Agreement will continue to be defined as “doses of MedImmune-Manufactured
Product delivered to Wyeth later than the month in which such doses are to be
delivered under the applicable Forecast for the applicable Flu Season;

 

(b)                                 the third sentence of Section 7.2(b) of
the Supply Agreement is superceded as follows: 
“With respect to any Late Doses during the applicable Flu Season, the
amount due to MedImmune with respect to those doses in the interim and final
reconciliation calculations for that Flu Season (as set forth in Section 2.3(c)
of the Master Amendment) will be equal to (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) of the Net Sales attributable to the Late Doses sold and not
subsequently returned in that Flu Season.”

 

(c)                                  the third sentence of Section 7.3(b) of
the Supply Agreement is superceded as follows: 
“With respect to any Late Doses during the applicable Flu Season, the
amount due to MedImmune with respect to those doses in the interim and final
reconciliation calculations for that Flu Season (as set forth in Section 2.4(c)
of the Master Amendment) will be equal to (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) Of the Net Sales attributable to the Late Doses sold and not
subsequently returned in that Flu Season.”; and

 

(d)                                 the first sentence of Section 7.5 of the
Supply Agreement is superceded as follows: 
“MedImmune shall have the right to audit Wyeth’s records in order to
confirm its calculation of the payments owed to MedImmune under the Agreements,
as amended by this Master Amendment.”

 

For
clarity, Sections 7.2(b) (as modified by clause (b) of the preceding sentence),
7.3(b) (as modified by clause (c) of the preceding sentence), 7.4 and 7.5 (as
modified by clause (d) of the preceding sentence) of the Supply Agreement will
remain in full force and effect.  For
clarity, the terms “MedImmune Vaccines-Manufactured Product” and
“MedImmune-Manufactured Product” are to be used interchangeably and have the
meaning ascribed to the term “MedImmune Vaccines-Manufactured Product” in the Supply
Agreement.  The parties agree that this Section 2
describes only those payments due to MedImmune with respect to the delivery to
and acceptance by Wyeth of MedImmune Manufactured Product.  This Master Amendment is in no way meant to
alter, amend or otherwise modify any royalty or milestone payment due to
MedImmune under the Agreements, except to the extent set forth in Sections
4.1 and 4.3(b).

 

2.1                               Certain Definitions; Rules
of Construction.

 

(a)                                  Doses Sold, Returned or
Unsold.  For the purposes of this Section 2,
doses “sold” by Wyeth will mean doses of Product accepted by Wyeth and sold by
Wyeth to a Third Party whether or not those doses are subsequently
returned.  Doses sold that are
“subsequently returned” or doses “returned” will mean doses of Product that are
accepted by Wyeth and initially sold by Wyeth to a Third Party but then are
later returned (in accordance with Wyeth’s returned goods policy applicable to
the Product) and are not resold during the applicable Flu Season.  “Unsold” doses are doses of Product that are
accepted by Wyeth but not sold to a Third Party.  “Accepted” doses are those doses of MedImmune-Manufactured
Product delivered to Wyeth by MedImmune and accepted by Wyeth in accordance with
Section 6.3 of the Supply Agreement.

 

(b)                                  Determinations of
MedImmune-Manufactured Product.  To the extent any Product is not
manufactured by MedImmune and therefore one or more of the calculations in

 

2

 

this Section 2 require determining the amount of
MedImmune-Manufactured Product sold, returned or unsold, such amount will be
determined by multiplying the number of doses of Product sold, returned or
unsold, as applicable, by the ratio of (1) MedImmune-Manufactured Product
accepted by Wyeth divided by (2) the sum of (A) Product (other than
MedImmune-Manufactured Product) produced for the applicable Flu Season and
released for distribution plus (B) doses of MedImmune-Manufactured
Product accepted by Wyeth (such ratio, the “MedImmune-Manufactured
Product Ratio”).

 

(c)                                  Determinations of Net Sales
Attributable to MedImmune-Manufactured Product.  To
the extent any Product is not manufactured by MedImmune and therefore one or
more of the calculations in this Section 2 require determining the
amount of Net Sales attributable to MedImmune-Manufactured Product, such amount
will be determined by multiplying Net Sales for the applicable Flu Season by
the MedImmune-Manufactured Product Ratio. 
The parties agree that for the purposes of this Section 2,
Net Sales will include only those Product sales in the Territory (as defined in
the U.S. Agreement).  If and when
MedImmune produces Finished Product under Section 18.8(a)(iii) of
the International Agreement and that Product is MedImmune-Manufactured Product,
then the parties agree that separate calculations under this Section 2
will be made for sales in the Territory (under the International Agreement) and
in such case Net Sales will include only those Product sales in the Territory
(as defined in the International Agreement).

 

2.2                               2003-2004 Flu Season.  The
parties agree that the JCC Forecast and the U.S. Frozen Forecast for the
2003-2004 Flu Season are both (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)
doses.  Because the JCC Forecast for the
2003-2004 Flu Season is in excess of (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) doses and Regulatory Approval for the Frozen Formulation in the
Territory was obtained before June 30, 2003, Wyeth agrees that MedImmune
has earned and Wyeth will pay the (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)
milestone described in Section 8.3(a)  of
the U.S. Agreement no later than December 31, 2003.

 

2.3                               Payments for First Four Flu
Seasons.

 

(a)                                  Generally.  The total
transfer amount due to MedImmune in respect of the MedImmune-Manufactured Product
accepted by Wyeth during any of the first four Flu Seasons will be the transfer
price for those doses as described in this Section 2.3.  Upon acceptance of each shipment of doses of
MedImmune-Manufactured Product for each of the first four Flu Seasons, Wyeth
will make an estimated transfer price payment to MedImmune in respect of such
doses.  No later than April 30 of
each Flu Season, Wyeth will provide MedImmune with a written description of the
interim aggregate actual transfer price due to MedImmune for that Flu Season  as of that date describing Wyeth sales of
the Product (i.e., indicating the
number of doses sold, the number doses returned and the number of unsold
doses), with a detailed description of the applicable reconciliation
calculation. If the reconciliation calculation indicates that any amount is
owed to MedImmune, Wyeth will pay MedImmune that amount within 30 days after
receiving the reconciliation calculation. 
If the reconciliation calculation indicates that any amount is owed to
Wyeth, MedImmune will pay Wyeth that amount within 30 days after receiving the
reconciliation calculation.  No later
than 30 days after the end of each Flu Season, but in any event by July 31
of the applicable Flu Season, Wyeth will provide MedImmune with a written
description of the final aggregate actual transfer price due to MedImmune for
that Flu Season  describing Wyeth
sales of the Product (i.e.,
indicating the number of doses sold, the number doses returned and the number
of unsold doses), and a detailed description of the applicable reconciliation
calculation.  If the reconciliation
calculation indicates any amount is owed to MedImmune, Wyeth will pay MedImmune
that amount within 30 days after receiving the reconciliation calculation. If
the reconciliation calculation indicates that any amount is owed to Wyeth,
MedImmune will pay Wyeth that amount within 30 days after receiving the
reconciliation calculation.  For the
purpose of this Section 2.3(a), the estimated transfer price
payment

 

3

 

for each shipment will be calculated as set forth in Section 2.3(b),
and the aggregate actual transfer price and reconciliation for the applicable
Flu Season  will be calculated as
set forth in Section 2.3(c).

 

(b)                                  Estimated Transfer Price
Payment Calculations.  For the purpose of Section 2.3(a),
the estimated transfer price payment per shipment of doses accepted by Wyeth
will be calculated as follows:

 

TPe = Das  ́ Pe

 

where:

 

TPe is the estimated transfer price per shipment;

Das is the number of doses of MedImmune-Manufactured Product accepted by
Wyeth in the shipment; and

Pe is the estimated average transfer price per
dose, which is constant throughout any given Flu Season and calculated as
(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) of (1) the estimated Net Sales
attributable to MedImmune-Manufactured Product for the Flu Season divided by
(2) the Forecast of MedImmune-Manufactured Product for that Flu Season less
(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)of the estimated number of returned
doses of MedImmune-Manufactured Product for that Flu Season.

 

For
the purpose of determining the estimated average transfer price per dose (Pe) for a
particular Flu Season, Wyeth and MedImmune agree that Pe for the
2003-2004 Flu Season is (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED). For all
subsequent Flu Seasons, the JCC (or ICC, as applicable) will calculate and
provide the parties with the Pe for that Flu Season no later than 90 days
before the beginning of the applicable Flu Season.  For the purpose of this Section 2.3(b), the beginning
of the Flu Season in the case of the Northern Hemisphere will be deemed to be
September 1  and for all other
regions will be determined by mutual agreement of the parties.

 

(c)                                  Reconciliation; Aggregate
Actual Transfer Price Calculations.  For the purpose of Section 2.3(a),
the aggregate actual transfer price for the applicable Flu Season  will be calculated as follows:

 

TPa = Da  ́ Pa

 

where:

 

TPa is the aggregate actual transfer price for the applicable Flu Season (i.e., the total payment due to MedImmune);

Da is the total number of doses of MedImmune-Manufactured Product
accepted by Wyeth during the Flu Season; and

Pa is the actual average transfer price per
dose, which is calculated as (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) of (1)
the actual Net Sales attributable to MedImmune-Manufactured Product for the Flu
Season divided by (2) the total number of doses of
MedImmune-Manufactured Product sold by Wyeth during the Flu Season less
(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) the number of doses of
MedImmune-Manufactured Product sold by Wyeth during the Flu Season and
subsequently returned.

 

4

 

If the interim payment due to MedImmune under this Section 2.3(c)
for a Flu Season (i.e., TPa)
exceeds the estimated payment made to MedImmune under Section 2.3(b)
for that Flu Season (i.e., TPe) then
the amount due to MedImmune at the interim payment period will be TPa  minus TPe.  Conversely, if TPe exceeds TPa then the amount due to
Wyeth will be TPe  minus TPa.

 

If the final payment due to MedImmune under this Section 2.3(c)
for a Flu Season exceeds the estimated payment made to MedImmune under Section 2.3(b)
for that Flu Season (as adjusted to reflect any interim payment), then that
excess will be the amount due to MedImmune at the final payment date.  Conversely, if the estimated payment made to
MedImmune under Section 2.3(b) for that Flu Season (as adjusted to
reflect any interim payment) exceeds the final payment due to MedImmune under
this Section 2.3(c), then that excess will be the amount due to
Wyeth at the final payment date.

 

To the extent any amount is due to MedImmune in respect of Late Doses,
such amount will be added to TPa in the interim and reconciliation
calculations above.

 

2.4                               Payments for Fifth and
Subsequent Flu Seasons.

 

(a)                                  Generally.  The total
transfer amount due to MedImmune in respect of the MedImmune-Manufactured
Product accepted by Wyeth during any of the fifth and subsequent Flu Seasons
will be the transfer price described in this Section 2.4 plus
payments for unsold and returned doses (also described in this Section 2.4).  Upon acceptance of each shipment of doses of
MedImmune-Manufactured Product for each of the fifth and subsequent Flu Seasons,
Wyeth will make an estimated transfer payment (including an estimate of the
payments for unsold and returned doses) to MedImmune in respect of such
doses.  No later than April 30 of
each Flu Season, Wyeth will provide MedImmune with a written description of the
interim aggregate transfer payments due to MedImmune for that Flu Season  as of that date describing Wyeth sales of
the Product (i.e., indicating the
number of doses sold, the number doses returned and the number of unsold
doses), with a detailed description of the applicable reconciliation
calculations. If the reconciliation calculation indicates that any amount is
owed to MedImmune, Wyeth will pay MedImmune that amount within 30 days after
receiving the reconciliation calculation. 
If the reconciliation calculation indicates that any amount is owed to
Wyeth, MedImmune will pay Wyeth that amount within 30 days after receiving the
reconciliation calculation.  No later
than 30 days after the end of each Flu Season, but in any event by July 31
of the applicable Flu Season, Wyeth will provide MedImmune with a written
description of the final aggregate transfer payments due to MedImmune for that
Flu Season  describing Wyeth sales
of the Product (i.e., indicating
the number of doses sold, the number doses returned and the number of unsold
doses), and a detailed description of the applicable reconciliation
calculations.  If the reconciliation
calculation indicates any amount is owed to MedImmune, Wyeth will pay MedImmune
that amount within 30 days after receiving the reconciliation calculation. If
the reconciliation calculation indicates that any amount is owed to Wyeth,
MedImmune will pay Wyeth that amount within 30 days after receiving the
reconciliation calculation.  For the
purpose of this Section 2.4(a), the estimated transfer price
payment for each shipment will be calculated as set forth in Section 2.4(b),
and the aggregate actual transfer price and reconciliation for the applicable
Flu Season  will be calculated as
set forth in Section 2.4(c).

 

(b)                                  Estimated Transfer Price
Payment Calculations.  The estimated transfer price payment per
shipment of doses accepted by Wyeth  will
be calculated as follows:

 

TPe = Das  ́ Pe

 

where:

 

TPe is the estimated transfer price per shipment;

 

5

 

Das is the number of doses of MedImmune-Manufactured Product accepted by
Wyeth in the shipment; and

Pe is the estimated average transfer price per
dose, which is constant throughout any given Flu Season and calculated as
(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) of the estimated Net Sales
attributable to MedImmune-Manufactured Product for the Flu Season divided by
the Forecast of MedImmune-Manufactured Product for that Flu Season.

 

The
total estimated payment amount due upon acceptance of any shipment will be the
estimated transfer price payment for that shipment (TPe) plus
the estimated payment for unsold and returned doses for that shipment (to be
determined by mutual agreement of the parties as a reasonable estimate of the
corresponding actual amounts to be calculated under Section 2.4(c)).  For the purpose of determining the estimated
average transfer price per dose (Pe) for a particular Flu Season,
the JCC (or ICC, as applicable) will calculate and provide the parties with the
Pe
for that Flu Season no later than 90 days before the beginning of the
applicable Flu Season.  For the purpose
of this Section 2.4(b), the beginning of the Flu Season in the case
of the Northern Hemisphere will be deemed to be September 1  and for all other regions will be
determined by mutual agreement of the parties.

 

(c)                                  Calculations of Aggregate
Actual Transfer Price, Unsold Price and Return Price Payments; Reconciliation.  The total
amount due to MedImmune for each Flu Season starting with the fifth Flu Season
will be the aggregate actual transfer price payment plus the unsold price
payment plus the return price payment as calculated in accordance with this Section 2.4(c)
(i.e., TPa + UP + RP, as such terms are
defined below in this Section 2.4(c)).

 

(1)                                 Aggregate Actual Transfer
Price.  The
aggregate actual transfer price payment for the applicable Flu Season  will be calculated as follows:

 

TPa = Ds  ́ Pa

 

where:

 

TPa is the aggregate actual transfer price for the applicable Flu Season;

Ds is the greater of (A) (CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED) of the doses accepted by Wyeth during the
applicable Flu Season or (B) the total number of doses of
MedImmune-Manufactured Product sold by Wyeth during the Flu Season; and

Pa is the actual average transfer price per
dose, which is calculated as (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) of (A)
the actual Net Sales attributable to MedImmune-Manufactured Product for the Flu
Season divided by (B) the total number of doses of
MedImmune-Manufactured Product sold by Wyeth during the Flu Season.

 

(2)                                 Unsold Price.  The
unsold price payment for the applicable Flu Season  will be calculated as follows:

 

UP = Da  ́ Pa

 

where:

 

UP is the
unsold price for the applicable Flu Season;

Du is the lesser of (1) the total number of
doses of MedImmune-Manufactured Product accepted by Wyeth but not sold during
the applicable Flu Season or (2) (CONFIDENTIAL TREATMENT HAS

 

6

 

BEEN
REQUESTED) of the total number of doses of MedImmune-Manufactured Product
accepted by Wyeth during the Flu Season; and

Pu is the price per dose to be paid for each
unsold dose, which is the lesser of (1) (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) of MedImmune’s Manufacturing Costs for the unsold doses divided
by the number of unsold doses or (2) the Cost of Goods Cap.

 

(3)                                 Return Price.  The
return price payment for the applicable Flu Season  will be calculated as follows:

 

RP = Dr  ́ Pr

 

where:

 

RP is the
return price for the applicable Flu Season;

Dr is the number of doses of MedImmune-Manufactured Product returned
during the Flu Season; and

Pr is the price per dose to be paid for each dose returned, which is
based on the number of doses of MedImmune-Manufactured Product sold during the
Flu Season as set forth in the following table:

 

	
  Number of Doses of MedImmune-

  Manufactured Product Sold During

  the Flu Season

  	
   

  	
  Pr

  
	
   

  	
   

  	
   

  
	
  (CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  or less

  	
   

  	
  $(CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  
	
  (CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  	
   

  	
  $(CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  
	
  (CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  or more

  	
   

  	
  $(CONFIDENTIAL
  TREATMENT

  HAS BEEN REQUESTED)

  

 

provided that, the price per dose in the preceding table
will be adjusted on July 1, 2004 and every July 1 afterwards during
the term of the Supply Agreement by increasing or decreasing such price per
dose by a percentage equal to one-half of any cumulative percentage increase or
decrease, respectively, in the Consumer Price Index as of such adjustment date,
as compared to the Consumer Price Index in effect on July 1, 2003.

 

If the interim payment due to MedImmune under this Section 2.4(c)
for a Flu Season (i.e., TPa + UP + RP) exceeds the
estimated payment made to MedImmune under Section 2.4(b) for that
Flu Season then the amount due to MedImmune will be (TPa + UP + RP)  minus the
estimated payment.  Conversely, if the
estimated payment exceeds (TPa
+ UP + RP) then the amount
due to Wyeth will be the estimated payment minus (TPa + UP + RP).

 

If the final payment due to MedImmune under this Section 2.4(c)
for a Flu Season exceeds the estimated payment made to MedImmune under Section 2.4(b)
for that Flu Season (as adjusted to reflect

 

7

 

any interim payment), then that excess will be the amount due to
MedImmune at the final payment date. 
Conversely, if the estimated payment made to MedImmune under Section 2.4(b)
for that Flu Season (as adjusted to reflect any interim payment) exceeds the
final payment due to MedImmune under this Section 2.4(c), then that
excess will be the amount due to Wyeth at the final payment date.

 

To the extent any amount is due to MedImmune in respect of Late Doses,
such amount will be added to TPa in the interim and reconciliation calculations
above.

 

2.5                               Excess Doses. 
Wyeth has the right but not the obligation to accept any doses that are
delivered in excess of the Forecast/Modified Forecast (such doses, “Excess Doses”).  If Wyeth, in its sole discretion, accepts any Excess Doses, then
the Forecast for that Flu Season will be deemed to have been increased to
include such accepted Excess Doses.

 

3.                                      CAIV-T Research and
Development.  Notwithstanding anything to the contrary
regarding allocation of research and development costs set forth in the U.S.
Agreement or the International Agreement, the parties agree that they will
share certain expenses for the research and development of a liquid trivalent
cold-adapted intranasal influenza vaccine (“CAIV-T”)  in
accordance with the terms of this Section 3.  In exchange, each party agrees that it has a
continuing obligation to provide to the other all data and other materials
related to all studies, trials and tests related to the research and
development of CAIV-T (whether completed, on-going or proposed and domestic or
international).  The parties agree that
the design and execution of all studies, trials and tests related to CAIV-T
that have either not been initiated as of the date of execution of this Master
Amendment or have been initiated but are subsequently modified will be reviewed
and agreed upon by the JDC and then submitted to the JCC for final review and
approval.

 

3.1                               Milestone Payments. 
MedImmune agrees to make a payment of $(CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) to Wyeth no later than February 1, 2004 in recognition of
CAIV-T research expenses incurred by Wyeth through December 31, 2003 and
for which Wyeth has no further service obligation to MedImmune.  In addition, MedImmune agrees to make the
following milestone payments to Wyeth promptly after achievement of the
corresponding milestone:

 

	
  Milestone

  	
   

  	
  Milestone
  Payment

  
	
  FDA’s
  acceptance for filing of the first PLA for CAIV-T

  	
   

  	
  $(CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  
	
  First
  approval by the FDA of a PLA for CAIV-T

  	
   

  	
  $(CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  

 

3.2                               Research and Development
Expenses.  Notwithstanding anything in Section 6.4
of the U.S. Agreement to the contrary, R&D Expenses that are incurred on or
after January 1, 2004 and relate to studies, tests or trials that support
regulatory filings related to CAIV-T exclusively in the United States and in no
other jurisdictions (“U.S.-Only Expenses”),
will be borne (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED). Any R&D Expenses
that are incurred on or after January 1, 2004 and relate to studies, tests
or trials that support regulatory filings related to CAIV-T in the United
States and one or more other jurisdictions (“Multi-Jurisdiction Expenses”) will be borne (CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED).  Any
R&D Expenses that are incurred after January 1, 2004 and relate to
studies, tests or trials to support regulatory filings related to CAIV-T
exclusively in jurisdictions outside of the United States (“Ex-U.S. Expenses”) will be borne
(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED). 
For the purposes of the three

 

8

 

preceding
sentences, the term “exclusively” refers solely to the jurisdiction limitation
for support of regulatory filings and does not prohibit either Party from
fulfilling any disclosure obligations to regulatory authorities in any
jurisdiction.

 

For clarity, a complete list of those on-going studies, trials and
tests related to CAIV-T for which R&D Expenses are expected to be incurred
on or after January 1, 2004 and the amounts that have been budgeted for
such studies, trials and tests  will
be reviewed for approval by the JDC and the JCC no later than December 31,
2003 and will be categorized as U.S.-Only Expenses, Multi-Jurisdiction Expenses
or Ex-U.S. Expenses, if and when approved. 
In accordance with the procedure described in the introductory paragraph
of this Section 3, all other studies, trials and tests to be
included in the Development Plan and related to CAIV-T will be approved by the
JDC or IDC, as applicable and JCC or ICC, as applicable and the related
expenses will be designated by the JDC or IDC (subject to final approval by the
JCC or ICC) as U.S.-Only Expenses, Multi-Jurisdiction Expenses or Ex-U.S.
Expenses, as applicable, at the time of such approval.  The Party conducting or sponsoring the
study, trial or test will notify the other in writing promptly if the expenses
exceed or are expected to exceed the budgeted amount approved by the JCC or ICC
by greater than a percentage amount (which percentage amount will be set for
the JCC and ICC by the JCC on or before December 31, 2003) with an
explanation of the reason for the variance. 
Amounts in excess of the percentage amount above the budgeted amount approved
by the JCC or ICC will be borne by the Party conducting the applicable study,
trial or test unless a revised budget is approved by the JCC or ICC, after a
good faith evaluation of the explanation of the reason for the variance.  The Party incurring the expense will invoice
the other on a quarterly basis and payment by the other Party of its share of
such expenses, as provided in this Section 3.2, will be due within 30 days
after receipt of such invoice.

 

4.                                      Elimination of (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) ; Related Adjustments of Agreement Terms.
This Section 4 amends the U.S. Agreement and the International
Agreement.

 

4.1                               Elimination of (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED).  Section 12.4
of the U.S. Agreement (under the caption (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED) ) is hereby deleted.

 

4.2                               Term of U.S. Agreement.

 

(a)                                  Term Extension.  The parties
agree that for the purposes of the U.S. Agreement there is no “Launch Date Flu
Season” and that the 2003-2004 Flu Season is the “First Full Flu Season.”  In addition, Section 1.16 of the U.S.
Agreement (as set forth in the First Amendment of the U.S. Agreement) is hereby
deleted and replaced with the following new Section 1.16:

 

“1.16                  “Co-Promotion Term” means the period commencing with the
2003-2004 Flu Season, and terminating upon the earlier of (a) the conclusion of
the eleventh Flu Season (i.e.,
May 1, 2014), or (b) termination of this Agreement pursuant to
Section 19.2, 19.3, 19.4 or 19.5, or as otherwise agreed by the Parties in
writing.”

 

For
clarity, under the terms of this amended Section 1.16, the term of the
U.S. Agreement will expire upon the completion of the eleventh Flu Season,
unless terminated earlier in accordance with the terms of the U.S. Agreement
(as amended by this Master Amendment). 
Since the first Flu Season is 2003-2004, the U.S. Agreement will expire
(unless terminated) upon the conclusion of the 2013-2014 Flu Season.

 

9

 

(b)                                  Elimination of Options to
Extend Co-Promotion Term.  Section 19.8 of the U.S. Agreement is
hereby deleted (in order to preserve the numbering of subsequent provisions,
Section 19.8 of the U.S. Agreement is reserved).

 

4.3                               Royalty Rate Adjustment.  The
first paragraph of Section 12.1(b) of the U.S. Agreement (including
the royalty rate table) is hereby deleted and replaced with the following
paragraph and table:

 

“(b)                           Sales During the 2003-2004
Flu Season and Thereafter.  With respect to Net Sales occurring during
the 2003-2004 Flu Season and thereafter, Wyeth shall pay royalties to MedImmune
on Annual Net Sales of all aggregated Products in the Territory at the
following marginal rates applicable to the Flu Season designated in the table
below:

 

10

 

	
   

  	
   

  	
  Year in
  Which Flu Season Begins

  
	
   

  	
   

  	
  2003 to
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  	
  2013

  
	
  For
  Annual Net Sales up to $(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For
  the portion of Annual Net Sales in excess of $(CONFIDENTIAL TREATMENT HAS
  BEEN REQUESTED)  and not exceeding
  $(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For
  the portion of Annual Net Sales in excess of $(CONFIDENTIAL TREATMENT HAS
  BEEN REQUESTED)  and not exceeding
  $(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For
  the portion of Annual Net Sales in excess of $(CONFIDENTIAL TREATMENT HAS
  BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  	
   

  	
  (CONFIDENTIAL
  TREATMENT HAS BEEN REQUESTED)

  

“

4.4                               Adjustments to the
International Agreement.

 

(a)                                  Term.  Section 18.1(a)
of the International Agreement is hereby amended by deleting “December 31,
2012” and inserting in its place “June 30, 2015.”

 

11

 

(b)                                  Termination Without Cause.  Section 18.3(b)
of the International Agreement is hereby deleted in its entirety and replaced
by the following:  “(b) at any time,
with or without cause, upon at least 12 months prior written notice to
MedImmune.”

 

(c)                                  Certain Adjustments to
Option Price.  A new Section 18.8(b)(iii) is hereby
added to the International Agreement as follows:

 

“(iii)                     Credit for (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) Option Years.  If
Wyeth elects to exercise its option (CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED), then Wyeth will receive a credit for each such extension year in
the amount of $(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) to be applied upon
the reconciliation for that extension year described in
Section 18.8(b)(ii).  This credit
will not, in any event, reduce the Option Price for the applicable extension year
below $(CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) and Wyeth acknowledges and
agrees that the Option Price advance payment made under Section 18.8(i),
if and when made, will be deemed to be non-refundable.  To the extent a balance is remaining after application
of the credit consistent with the preceding sentences of this
Section 18.8(iii), Wyeth will make payment when due in accordance with
Section 18.8(b)(ii) and if there is any residual credit, that credit will
be forfeited.  For clarity, any residual
credit after (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) will not be applicable
against the Option Price for (CONFIDENTIAL TREATMENT HAS BEEN REQUESTED) .”

 

5.                                      Full Force and Effect. 
Except as set forth in this Master Amendment, in all other respects the
Agreements remain in full force and effect.

 

6.                                      Counterpart; Facsimile
Signatures.  The Parties agree that this Master Amendment
may be executed in counterparts and by facsimile.

 

[Remainder of this page intentionally left blank.]

 

12

 

MedImmune and Wyeth have caused this Master Amendment to be executed as
of the date first written above by their respective duly authorized officers.

 

	
  Wyeth, acting through its

  Wyeth Pharmaceuticals Division

  	
  MedImmune Vaccines, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Geno J. Germano

  	
   

  	
  By:

  	
  /s/
  Melvin D. Booth

  	
   

  
	
   

  	
  Name:

  	
  Geno
  J. Germano

  	
   

  	
   

  	
  Name:

  	
  Melvin
  D. Booth

  	
   

  
	
   

  	
  Title:

  	
  E.V.P./GM
  Wyeth Vaccines

  	
   

  	
   

  	
  Title:

  	
  President
  and COO

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