Document:

pti-ex103_42.htm

Exhibit 10.3

 

FOURTH AMENDMENT TO LEASE

THIS FOURTH AMENDMENT TO LEASE (this "Fourth Amendment") is made as of April 13, 2018, by and between ARE-TECH SQUARE, LLC, a Delaware limited liability company ("Landlord"), and PROTEOSTASIS THERAPEUTICS, INC., a Delaware corporation ("Tenant").

RECITALS

A.Landlord and Tenant entered into that certain Lease Agreement dated as of March 31, 2009, as amended by that certain First Amendment to Lease dated as of April 16, 2009, as further amended by that certain Second Amendment to Lease dated as of March 9, 2011, as further amended by that certain Third Amendment to Lease dated as of June 25, 2014 (as amended, the "Lease").  Pursuant to the Lease, Tenant leases certain premises consisting of approximately 18,263 rentable square feet ("Premises") in a building located at 200 Technology Square, Cambridge, Massachusetts.  The Premises are more particularly described in the Lease.  Capitalized terms used herein without definition shall have the meanings defined for such terms in the Lease. 

B. The Term of the Lease is currently scheduled to expire on May 31, 2018.

C. Landlord and Tenant desire, subject to the terms and conditions set forth below, to among other things, revise the term of the Lease to accelerate the expiration date so that it now occurs on May 3, 2018.  

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

	
1.
	
Term.  Notwithstanding anything to the contrary contained in the Lease, the expiration date of the Lease is hereby amended to occur on May 3, 2018 (the “Accelerated Expiration Date”).  The Rent for the partial month of May 2018 shall be prorated on a per diem basis.  Tenant shall surrender the Premises as required under the Lease on the Accelerated Expiration Date.  Tenant shall use commercially reasonable efforts to continue diligently prosecuting the Surrender Plan previously submitted to Landlord pursuant to the terms of the Lease through the Accelerated Expiration Date.  The new tenant leasing the Premises immediately following the Accelerated Expiration Date is agreeing to assume all liabilities and obligations of  Tenant to surrender the Premises in the environmental condition required under Lease.   Accordingly, Landlord shall look to the new tenant (and not Tenant) if, despite using reasonable efforts to complete the Surrender Plan, the Surrender Plan has not been completed by Tenant by the Accelerated Expiration Date.  

	
2.
	
Brokers.  Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with the transaction reflected in this Fourth Amendment and that no Broker brought about this transaction.  Landlord and Tenant each hereby agrees to indemnify and hold the other harmless from and against any claims by any Broker claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this Fourth Amendment.

 

	
727089475.4
	
 
	

	
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3.
	
OFAC.  Tenant and all beneficial owners of Tenant are currently (a) in compliance with and shall at all times during the Term of the Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of the Lease be listed on, the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List or the Sectoral Sanctions Identifications List, which are all maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

	
4.
	
Miscellaneous.

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

b.This Fourth Amendment is binding upon and shall inure to the benefit of the parties hereto, and their respective successors and assigns.

c.Tenant acknowledges that it has read the provisions of this Fourth Amendment, understands them, and is bound by them. Time is of the essence in this Fourth Amendment.

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

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

[Signatures are on the next page]

 

	
727089475.4
	
 
	

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

 

				
	
TENANT:
	
 

	
 
	
 
	
 
	
 

	
PROTEOSTASIS THERAPEUTICS, INC.,
	
 

	
a Delaware corporation
	
 

	
 
	
 
	
 
	
 

 

		
	
By:  /s/ Meenu Chhabra                                                    
	
 

	
Name:  Meenu Chhabra                                                  
	
 

	
Its:  President and CEO                                                    
	
 

 

				
	
 
	
 
	
 
	
 

	
LANDLORD:
	
 

	
 
	
 
	
 
	
 

	
ARE-TECH SQUARE, LLC,
	
 

	
a Delaware limited liability company
	
 

 

				
	
By:
	
 
	
ARE-MA REGION NO. 31, LLC,
	
 

	
 
	
 
	
a Delaware limited liability company,
	
 

	
 
	
 
	
its manager
	
 

 

				
	
By:
	
 
	
ALEXANDRIA REAL ESTATE EQUITIES, L.P.,
	
 

	
 
	
 
	
a Delaware limited partnership,
	
 

	
 
	
 
	
managing member
	
 

 

				
	
By:
	
 
	
ARE-QRS CORP.,
	
 

	
 
	
 
	
a Maryland corporation,
	
 

	
 
	
 
	
general partner
	
 

	
 
	
 
	
 
	
 

 

				
	
By:
	
 
	
/s/ Eric S. Johnson
	
 

	
Its:
	
 
	
SVP, RE Legal Affiars
	
 

 

 

	
727089475.4
	
 
	

	
3pti-ex104_89.htm

Exhibit 10.4

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”) is made effective as of May 7, 2018 (the “Effective Date”), by and between Proteostasis Therapeutics, Inc. a Delaware corporation, with its principal place of business being 80 Guest St, Boston, MA 02135 (the “Company”) and Danforth Advisors, LLC, a Massachusetts limited liability corporation, with its principal place of business being 91 Middle Road, Southborough, MA 01772 (“Danforth”). The Company and Danforth are herein sometimes referred to individually as a “Party” and collectively as the “Parties.”

WHEREAS, the Company possesses know-how and proprietary technology related to drug discovery and development; and

WHEREAS, Danforth has expertise in financial and corporate operations and strategy; and

WHEREAS, Danforth desires to serve as an independent consultant for the purpose of providing the Company with certain strategic and financial advice and support services, as more fully described in Exhibit A attached hereto, (the “Services”); and

WHEREAS, the Company wishes to engage Danforth on the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree and covenant as follows.

	
1.
	
Services of Consultant. Danforth will assist the Company with matters relating to the Services. The Services are more fully described in Exhibit A attached hereto. Danforth and the Company will review the Services on a monthly basis to prioritize and implement the tasks listed on Exhibit A.
	
 

	
2.
	
Compensation for Services. In full consideration of Danforth's full, prompt and faithful performance of the Services, the Company shall compensate Danforth a consulting fee more fully described in Exhibit A (the “Consulting Fee”). Danforth shall, from time to time, but not more frequently than twice per calendar month, invoice the Company for Services rendered, and such invoice will be paid upon fifteen (15) days of receipt. Each month the Parties shall evaluate jointly the current fee structure and scope of Services Danforth reserves the right to an annual increase in consultant rates of up to 4% effective January 1 of each year subject to prior written notification. Upon termination of this Agreement pursuant to Section 3, no compensation or benefits of any kind as described in this Section 2 shall be payable or issuable to Danforth after the effective date of such tamination. In addition, the Company will reimburse Danforth for reasonable out-ofpocket business expenses, including but not limited to travel and parking, incurred by 
	
 

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Danforth in performing the Services hereunder, upon submission by Danforth of supporting documentation reasonably acceptable to the Company. Any such accrued expenses in any given three (3) month period that exceed one thousand dollars ($1,000) shall be submitted to the Company for its prior written approval.
	
 

All Danforth invoices and billing matters should be addressed to:

		
	
Company Accounts Payable Contact:
	
Accounts Payable

invoicing@proteostasis.com

847-280--1054

80 Guest Street

Boston, MA 02135

 

All Company payments and billing inquiries should be addressed to:

		
	
Danforth Accounting:
	
Betsy Sherr

bsherr@danforthadvisors.com

(508) 277-0031

Danforth Advisors

PO Box 335

Southborough, MA 01772

 

	
3.
	
Term and Termination. The term of this Agreement will commence on the Effective Date and will continue tlrough the anniversary of such date in the next calendar year (the “Term”). This Agreement may be extended for an additional period by mutual written agreement. This Agreement may be terminated by either Party hereto: (a) with Cause (as defined below), immediately upon written notice to the other Party; or (b) without cause upon sixty (30 ) days prior written notice to the other Party. For purposes of this Section 3, “Cause” shall include: (i) a breach of the terms of this Agreement which is not cured within thirty (30) days of written notice of such default or (ii) the commission of any act of fraud, embezzlement or deliberate disregard of a rule or policy of the Company.
	
 

	
4.
	
Time Commitment. Danforth will devote such time to perform the Services under this Agreement as may reasonably be required.
	
 

	
5.
	
Place of Performance. Danforth will perform the Services at such locations upon which the Company and Danforth may mutually agree. Danforth will not, without the prior written consent of the Company, perform any of the Services at any facility or in any manner that might give anyone other than the Company any rights to or allow for disclosure of any Confidential Information (as defined below).
	
 

	
6.
	
Compliance with Policies and Guidelines. Danforth will perform the Services in accordance with all rules or policies adopted by the Company that the Company discloses in writing to Danforth.
	
 

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7.
	
Confidential Information. Danforth acknowledges and agrees that during the course of performing the Services, the Company may furnish, disclose or make available to Danforth information, including, but not limited to, material, compilations, data, formulae, models, patent disclosures, procedures, processes, business plans, projections, protocols, results of experimentation and testing, specifications, strategies and techniques, and all tangible and intangible embodiments thereof of any kind whatsoever (including, but not limited to, any apparatus, biological or chemical materials, animals, cells, compositions, documents, drawings, machinery, patent applications, records and reports), which is owned or controlled by the Company and is marked or designated as confidential at the time of disclosure or is of a type that is customarily considered to be confidential information (collectively the “Confidential Information”). Danforth acknowledges that the Confidential Information or any part thereof is the exclusive property of the Company and shall not be disclosed to any third party without first obtaining the written consent of the Company. Danforth further agrees to take all practical steps to ensure that the Confidential Information, and any pan thereof, shall not be disclosed or issued to its affiliates, agents or employees, except on like terms of confidentiality. The above provisions of confidentiality shall apply for a period of five (5) years.
	
 

	
8.
	
Intellectual Property. Danforth agrees that all ideas, inventions, discoveries, creations, manuscripts, properties, innovations, improvements, know-how, inventions, designs, developments, apparatus, techniques, methods, and formulae that Danforth conceives, makes, develops or improves as a result of performing the Services, whether or not reduced to practice and whether or not patentable, alone or in conjunction with any other party and whether or not at the request or upon the suggestion of the Company (all of the foregoing being hereinafter collectively referred to as the “Inventions”), shall be the sole and exclusive property of the Company. Danforth hereby agrees in consideration of the Company's agreement to engage Danforth and pay compensation for the Services rendered to the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged that Danforth shall not, without the prior written consent of the Company, directly or indirectly, consult for, or become an employee of, any company which conducts business in the Field of Interest anywhere in the world. As used herein, the term “Field of Interest” shall mean the research, development, manufacture and/or sale of the products resulting from the Company's technology. The limitations on competition contained in this Section 8 shall continue during the time that Danforth performs any Services for the Company,whether as a consultant, employee or otherwise and for a period of three (3) months following the tennination of any such Services that Danforth performs for the Company. If any part of this section should be determined by a court of competent jurisdiction to be unreasonable in duration, geographic area, or scope, then this Section 8 is intended to and shall extend only for such period of time, in such area and with respect to such activity as is determined to be reasonable. Except as expressly provided herein, nothing in this Agreement shall preclude Danforth from consulting for or being employed by any other person or entity.
	
 

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9.
	
Non Solicitation. All personnel representing Danforth are employees or contracted agents of Danforth. As such, they are obligated to provide the Services to the Company and are obligated to Danforth under confidentiality, non-compete, and non-solicitation agreements. Accordingly, they are not retainable as employees or contractors by the Company and the Company hereby agrees not to solicit, hire or retain their services for so long as they are employees or contracted agents of Danforth and for one (1) year thereafter. Should the Company violate this restriction, it agrees to pay Danforth liquidated damages equal to thirty percent (30%) of the employee's starting annual base salary. for each Danforth contracted agent hired by the Company in violation of this Agreement, plus Danforth's reasonable attorneys' fees and costs incurred in enforcing this agreement should the Company fail or refuse to pay the liquidated damages amount in full within thirty (30) days following its violation.
	
 

	
10.
	
Placement Services. In the event that Danforth refers a potential employee to the Company and that individual is hired, Danforth shall receive a fee equal to twenty percent (20%) of the employee's starting annual base salary. This fee is due and owing whether an individual is hired, directly or indirectly on a permanent basis or on a contract or consulting basis by the Company, as a result of Danforth's efforts within one (2) year of the date applicant(s) are submitted to the Company. Such payment is due within thirty (30) days of the employee's start date.
	
 

	
ll.
	
No Implied Warranty. Except for any express warranties stated herein, the Services are provided on an “as is” basis, and the Company disclaims any and all other watxanties, conditions, or representations (express, implied, oral or written), relating to the Services or any part thereof. Further, in performing the Services Danforth is not engaged to disclose illegal acts, including fraud or defalcations, which may have taken place. The foregoing notwithstanding, Danforth will promptly notify the Company if Danforth becomes aware of any such illegal acts during the performance of the Services. Because the Services do not constitute an examination in accordance with standards established by the American Institute of Certified Public Accountants (the “AICPA”), Danforth is precluded from expressing an opinion as to whether financial statements provided by the Company are in conformity with generally accepted accounting principles or any other standards or guidelines promulgated by the AICPA, or whether the underlying financial and other data provide a reasonable basis for the statements.
	
 

	
12.
	
Indemnification. Each Party hereto agrees to indemnify and hold the other Party hereto, its directors, officers, agents and employees harmless against any claim based upon circumstances alleged to be inconsistent with such representations and/or warranties contained in this Agreement. Further, the Company shall indemnify and hold hannless Danforth and any of its subcontractors against any claims, losses, damages or liabilities (or actions in respect thereof) that arise out of or are based on the Services performed hereunder, except for any such claims, losses, damages or liabilities arising out of the gross negligence or willful misconduct of Danforth or any of its subcontractors. The Company will endeavor to add Consultant and any applicable subcontractor to its insurance policies as additional insureds.
	
 

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13.
	
Independent Contractor. Danforth is not, nor shall Danforth be deemed to be at any time during the term of this Agreement, an employee of the Company, and therefore Danforth shall not be entitled to any benefits provided by the Company to its employees, if applicable. Danforth's status and relationship with the Company shall be that of an independent contractor and consultant. Danforth shall not state or imply, directly or indirectly, that Danforth is empowered to bind the Company without the Company's prior written consent. Nothing herein shall create, expressly or by implication, a partnership, joint venture or other association between the parties. Danforth will be solely responsible for payment of all charges and taxes arising from his or her relationship to the Company as a consultant.
	
 

	
14.
	
Records. Upon termination of Danforth's relationship with the Company, Danforth shall deliver to the Company any property or Confidential Information of the Company relating to the Services which may be in its possession including products, project plans, materials, memoranda, notes, records, reports, laboratory notebooks, or other documents or photocopies and any such information stored using electronic medium.
	
 

	
15.
	
Notices. Any notice under this Agreement shall be in writing (except in the case of verbal communications, emails and teleconferences updating either Party as to the status of work hereunder) and shall be deemed delivered upon personal delivery, one day after being sent via a reputable nationwide overnight courier service or two days after deposit in the mail or on the next business day following transmittal via facsimile. Notices under this Agreement shall be sent to the following representatives of the Parties:
	
 

If to the Company:

 

		
	
Name:
	
Meenu Chhabra

	
Title:
	
President & Chief Executive Officer

	
Address:
	
80 Guest Street

Boston, MA 02135

	
Phone:
	
(617) 225-0096

	
E-mail:

If to Danforth:
	
meenu.chhabra@proteostasis.com

	
Name:
	
Gregg Beloff

	
Title:
	
Managing Director

	
Address:
	
91 Middle Road

Southborough, MA 01772

	
Phone:
	
(617) 686-7679

	
E-mail:
	
gbeloff@danforthadvisors.com

5

	
16.
	
Assignment and Successors. This Agreement may not be assigned by a Party without the consent of the other which consent shall not be unreasonably withheld, except that each Party may assign this Agreement and the rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any purchaser of all or substantially all of its assets or to any successor corporation resulting from any merger or consolidation of such Party with or into such corporation.
	
 

	
17.
	
Force Majeure. Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any causes beyond the reasonable control of either Party. In the event of such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder.
	
 

	
18.
	
Headings. The Section headings are intended for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.
	
 

	
19.
	
Integration; Severability. This Agreement is the sole agreement with respect to the subject matter hereof and shall supersede all other agreements and understandings between the Parties with respect to the same. If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the intention of the Parties that the remainder of the Agreement shall not be affected.
	
 

	
20.
	
Goveming Law. This Agreement shall be govemed by and construed in accordance with the laws of the Commonwealth of Massachusetts, excluding choice of law principles. The Parties agree that any action or proceeding arising out of or related in any way to this Agreement shall be brought solely in a Federal or State court of competent jurisdiction sitting in the Commonwealth of Massachusetts.
	
 

	
21.
	
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one agreement.
	
 

If you are in agreement with the foregoing, please sign where indicated below, whereupon this Agreement shall become effective as of the Effective Date.

 

	
DANFORTH ADVISORS, LLC
	
 
	
PROTEOSTASIS THERAPEUTICS, INC.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Gregg Beloff
	
 
	
By:
	
 
	
/s/ Meenu Chhabra

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Print Name:
	
 
	
Gregg Beloff
	
 
	
Print Name:
	
 
	
Meenu Chhabra

	
 
	
 
	
 
	
 
	
 

	
Title:
	
 
	
Managing Director
	
 
	
Title:
	
 
	
President & CEO

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
5/8/18
	
 
	
Date:
	
 
	
 

 

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EXHIBIT A

Description of Services and Schedule of Fees

Danforth will perform mutually agreed to finance and accounting functions which are necessary to support the management and operations of the Company, certain of which are set forth below.

VP of Finance Services:

	
 
	
•
	
Assist with the preparation of financial statement disclosures and SEC filings

	
 
	
•
	
Assist with the preparation and management of financial statement audit

	
 
	
•
	
Review systems of intemal control, proces'ses and SOPS to identify areas for risk management and improvement

	
 
	
•
	
Assess the Company's implementation of Netsuite and assist with maximizing the functionality of the implementation

	
 
	
•
	
Prepare detailed financial analyses, including forecasts, budgets, waterfall, etc

	
 
	
•
	
Other tasks as requested and appropriate

	
 
	
•
	
Assist with tax returns, as appropriate

Fees:

 

		
	
VP of Finance: Sandra Zimmerman
	
$225/hour

 

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