Document:

chrs-ex104_371.htm

 

Exhibit 10.4

FIRST AMENDMENT

THIS FIRST AMENDMENT (this “Amendment”) is made and entered into as of August 10, 2015, by and between HUDSON 333 TWIN DOLPHIN PLAZA, LLC, a Delaware limited liability company (“Landlord”), and COHERUS BIOSCIENCES, INC., a Delaware corporation (“Tenant”). 

RECITALS

 

	
A.
	
Landlord and Tenant are parties to that certain lease dated July 6, 2015 (the “Lease”).  Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 27,532 rentable square feet (the “Premises”) described as Suite No. 600 on the sixth floor of the building commonly known as 333 Twin Dolphin located at 333 Twin Dolphin Drive, Redwood City, California.

 

	
B.
	
Tenant and Landlord mutually desire that the Lease be amended on and subject to the following terms and conditions.

 

NOW, THEREFORE, in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:

 

	
1.
	
Amendment.  Effective as of the date hereof (unless different effective date(s) is/are specifically referenced in this Section), Landlord and Tenant agree that the Lease shall be amended in accordance with the following terms and conditions:

 

	
1.1.
	
Over-Allowance Amount.  Section 2.6.2 of Exhibit B to the Lease is hereby amended and restated as follows:

 

“2.6.2 Over-Allowance Amount.  If the Construction Pricing Proposal exceeds the Allowance, then Tenant shall deliver to Landlord cash in the amount of such excess (for purposes of this Exhibit B, the “Over-Allowance Amount”) in two installments:  (i) fifty percent (50%) concurrently with its delivery to Landlord of its approval of the Construction Pricing Proposal (the “Initial Payment”), and (ii) fifty percent (50%) upon the earlier of (A) 45 days after the date of commencement of construction of the Tenant Improvement Work, or (B) the first date on which Landlord has disbursed the entire Initial Payment in accordance with the provisions hereof.  The Over-Allowance Amount shall be disbursed by Landlord pursuant to the same procedure as the Allowance; provided, however, that any portion of the Over-Allowance Amount held by Landlord shall be disbursed by Landlord before the Allowance.  If, after the Construction Pricing Proposal is approved by Tenant, (a) any revision is made to the Approved Additional Programming Information or the Approved Architectural Drawings, or Tenant disapproves any Engineering Drawings that satisfy the Engineering Requirements, or the Tenant Improvement Work is otherwise changed, in each case in a way that increases the Construction Pricing Proposal, or (b) the Construction Pricing Proposal is otherwise increased to reflect the actual cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the terms hereof, then Tenant shall deliver any resulting Over-Allowance Amount (or any resulting increase in the Over-Allowance Amount) to Landlord within 10 business days after Landlord’s request following such increase in the Construction Pricing Proposal.” 

 

	
1.2.
	
Address of Landlord.  The address of Landlord set forth in Section 1.11 of the Lease is hereby amended and restated as the following:

 

Hudson 333 Twin Dolphin Plaza 

c/o Hudson Pacific Properties

950 Tower Lane, Suite 1800

Foster City, California  94404 

Attn:  Building manager

 

with copies to:

Hudson 333 Twin Dolphin Plaza 

c/o Hudson Pacific Properties

950 Tower Lane, Suite 1800

Foster City, California  94404 

Attn:  Managing Counsel

 

and:

Hudson 333 Twin Dolphin Plaza 

c/o Hudson Pacific Properties

11601 Wilshire Boulevard, Sixth Floor

Los Angeles, California 90025

Attn:  Lease Administration

 

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2.
	
Miscellaneous.

 

	
2.1.
	
This Amendment sets forth the entire agreement between the parties with respect to the matters set forth herein.  There have been no additional oral or written representations or agreements.  Tenant shall not be entitled, in connection with entering into this Amendment, to any free rent, allowance, alteration, improvement or similar economic incentive to which Tenant may have been entitled in connection with entering into the Lease, except as may be otherwise expressly provided in this Amendment. 

 

	
2.2.
	
Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.

 

	
2.3.
	
In the case of any inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control.

 

	
2.4.
	
Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant.  Landlord shall not be bound by this Amendment until Landlord has executed and delivered it to Tenant.

 

	
2.5.
	
Capitalized terms used but not defined in this Amendment shall have the meanings given in the Lease.

 

	
2.6.
	
Tenant shall indemnify and hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Tenant in connection with this Amendment.  Landlord shall indemnify and hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Landlord in connection with this Amendment.  Tenant acknowledges that any assistance rendered by any agent or employee of any affiliate of Landlord in connection with this Amendment has been made as an accommodation to Tenant solely in furtherance of consummating the transaction on behalf of Landlord, and not as agent for Tenant.

 

[SIGNATURES ARE ON FOLLOWING PAGE]

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

 

	
 
	
LANDLORD:

	
 
	
 
	
 

	
 
	
HUDSON 333 TWIN DOLPHIN PLAZA, LLC,
a Delaware limited liability company

	
 
	
 

	
 
	
By:
	
Hudson Pacific Properties, L.P.,
a Maryland limited partnership,
its sole member

	
 
	
 
	
 

	
 
	
 
	
By:
	
Hudson Pacific Properties, Inc.,
a Maryland corporation,
its general partner

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 /s/ Arthur X. Suazo

	
 
	
 
	
 
	
Name:
	
 Arthur X. Suazo

	
 
	
 
	
 
	
Title:
	
 Executive Vice President

	
 
	
 

TENANT:

	
 
	
 

	
 
	
COHERUS BIOSCIENCES, INC., a Delaware corporation

	
 
	
 

	
 
	
By:
	
 /s/ Dennis M. Lanfear

	
 
	
Name:
	
 Dennis M. Lanfear

	
 
	
Title:
	
 Chief Executive

	
 
	
 
	
   [chairman][president][vice-president]

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

	
 
	
 
	
   [secretary][assistant secretary][chief

   financial officer][assistant treasurer]

 

3Form of Annual Leadership Bonus Program

Exhibit 10.1
Form of Annual Leadership Bonus Program (“Bonus Program”)  
for Essent Group Ltd. and its subsidiaries  

1.  How the Bonus Program Works:
		
	a)
	Who may Participate in the Leadership Bonus Program and Be Considered for Bonus Payments?

		
	i)
	All Essent Group Ltd and its subsidiaries (“Company” or “Essent”) Senior Vice Presidents and above and other employees designated in writing as eligible to participate in the Bonus Program, who:

		
	(1)
	Are employed by the Company on or before [DATE] (those hired on or after [DATE] may participate on a pro rata basis calculated as of the first day of the month in which their date of hire falls);

		
	(2)
	Are eligible to participate in the Essent Group Ltd. 2013 Long-Term Incentive Plan (the “2013 LTIP”);

		
	(3)
	Are not on any form of written corrective counseling at the time payments are made; and

		
	(4)
	Are employed by Essent on the date the cash bonus payment is made and share bonus award is granted.  

		
	b)
	What is the Bonus Opportunity?

		
	i)
	Each Participant was provided with an annual Target Bonus expressed as a percentage of his or her base salary.  This is typically documented in an offer letter or other writing signed by the President and CEO, or another authorized officer, of Essent . 

		
	ii)
	Each Participant’s target amount and cash/shares percentage is communicated individually.

		
	iii)
	All shares issuable under this Program are authorized under Section 10 of the 2013 LTIP, and are subject to the broader terms of that Plan.  

		
	c)
	What Performance is Required for a Participant to be Eligible for a Bonus under the Bonus Plan?

Essent’s Bonus Program pays for performance.  This means that both the Participant and the Company must meet minimum stated scores to qualify for a bonus.  Essent utilizes scorecards for both Company and Participant performance to determine the potential size of the bonus payment.   Each Participant’s bonus will be dependent on several factors.  
		
	•
	The first factor is the achievement of Corporate Objectives as determined by Essent’s Board of Directors.  The Corporate Scorecard identifying the level of achievement of Corporate Objectives will be published by management.

		
	•
	The second factor is based on the Participant’s overall performance rating on his/her Individual Scorecard (“Annual Performance Review Form”).  The Annual Performance Review will take into consideration the level of the Participant’s achievement of Individual Objectives as well as other success factors.  Each Participant will receive an Annual Performance Review in the first calendar quarter of each year reviewing the previous calendar year’s results.  This process of combining both Company and individual achievement and rewarding success through the Bonus Program is designed to promote applicable desired conduct, including driving profitable business and balanced objectivity.

		
	(1)
	 Company Performance Scorecard

		
	•
	Please see Exhibit A which contains a sample of the Company Scorecard.  

1

		
	•
	In order for any payments to be made under the Bonus Program, Essent’s FY Company Scorecard must equal or exceed 2.5 (the “Company Score”).

		
	•
	Potential payment amounts increase as Essent’s weighted average scorecard score goes up. 

(2)    Individual Performance Scorecard
		
	•
	Each Participant will have an Annual Performance Review to determine the achievement of Individual Objectives and other success factors.  Please see Exhibit B for a sample of an Annual Performance Review Form that may be used as a scorecard for the achievement of Individual Objectives and other success factors.  

		
	•
	In order for a Participant to receive a bonus under the Bonus Plan, he or she must have an overall Performance Review Rating of 3 or higher on Essent’s 5-point scale at the time bonuses are paid (“Individual Score”), plus a Company Score of at least 2.5.

		
	•
	As a Participant’s Individual Score increases, his/her potential to reach the “Target” bonus or above also increases.

(3) Weighting of Corporate and Individual Scores
		
	•
	Each Participant has been assigned a weighting between the Company Score and Individual Score.  Exhibit C provides an example of a possible correlation between the achievement of Company Score and Individual Score and its impact on the potential bonus awards. Actual weightings are communicated individually and are determined by position.   

d)  How and When are Bonus Payments Made?
		
	i)
	Timing:

		
	(1)
	Any cash payment in respect of a bonus awarded under the Bonus Program is scheduled to occur as soon as practicable following the close of Fiscal Year [DATE], but in any case on or before March 15th of the following year.  

		
	ii)
	Form of Bonus Payments:

		
	(1)
	 75% of any awarded bonus will be paid in cash and 25% will be paid in Essent Group Ltd. restricted common shares valued based on the closing price of such Essent Group Ltd. common stock on the date the bonus is approved by the Board of Directors.  For the purposes of this Bonus Program, cash awards will be paid in cash (via check or direct deposit), less all applicable taxes and deductions.  Unless otherwise provided in a Participant’s employment or award agreement, restricted share share awards will vest in 3 equal installments, on each of [DATE], [DATE] and [DATE].  Share awards are subject to the terms of the 2013 LTIP, including an award agreement pursuant to the 2013 LTIP to be entered into between the Participant and Essent in such form as may be adopted by Essent from time to time.  All share awards are subject to withholding taxes on the date of vesting in accordance with applicable law and Company policy. 

		
	iii)
	Necessary Approvals:

		
	(1)
	The President and CEO together with the Compensation Committee (the “Compensation Committee”) and Board of Directors will review and approve all Participants’ awards under this Bonus Program.

		
	(2)
	The President and CEO’s cash payments and share awards under this Bonus Program are approved by the Compensation Committee and the Board of Directors.

		
	(3)
	The Board of Directors has sole discretion and final review and approval authority over the award pool under the Bonus Program, and holds the responsibility for reviewing and approving recommended individual payments for all Participants.

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	(4)
	If a Participant in this Program satisfies the “Covered Employee” definition in the Essent Group Ltd. Annual Incentive Plan (the “Annual Plan”), this Program document will serve as administrative guidelines for the Compensation Committee to apply in determining the cash and share bonus payout for that employee under the Bonus Program.  

		
	2)
	Who administers the Bonus Program?

Within the authority granted by the Compensation Committee, decisions are made by the Plan Administration Committee (“the Committee”), which is comprised of the President and CEO, the Chief Legal Officer and the Chief Financial Officer.  Notwithstanding the foregoing, decisions with respect to awards under the Bonus Plan to the President and CEO are made solely by the Compensation Committee.
		
	(1)
	The Committee’s responsibilities include:  

		
	(a)
	Providing information to the Compensation Committee and the Board of Directors;

		
	(b)
	Recommending eligibility rules, individual bonus target assignments and the relative weights of Company and Individual performance;

		
	(c)
	Establishing performance standards;

		
	(d)
	Adjusting financial accruals as necessary;

		
	(e)
	Facilitating the collection of aggregate and group payment recommendations for review by the President and CEO, according to the pool assigned by the Compensation Committee of the Board of Directors;

		
	(f)
	Reviewing and verifying all proposed payments before such payments are made;

		
	(g)
	Determining the extent to which internal transfers, promotions, changes in full-or-part-time status and approved leaves of absence impact accruals, targets and actual rewards; and

		
	(h)
	Interpreting the Bonus Program document and establishing, adopting, or amending any provisions as are necessary for proper administration, consulting where appropriate with the Compensation Committee and Board of Directors.

Important Details:
		
	a)
	Essent is an employer at will.  Participation in the Bonus Program or any enhancement of the Bonus Program does not impact this fact in any way.  Neither the Bonus Program nor any future enhancement will be deemed a contract for employment.

		
	b)
	The Bonus Program and Exhibits hereto may be amended, suspended or terminated at any time without notice upon the approval of the Compensation Committee and Board of Directors.

		
	c)
	Termination of Employment. 

		
	i.
	If a Participant’s employment is terminated (voluntarily or involuntarily) prior to the awarding or payment of any bonus under the Bonus Program, the Participant will not be entitled to any award or payment under the Bonus Program. 

		
	ii.
	If a Participant’s employment is terminated (voluntarily or involuntarily) prior to payment of an awarded bonus under the Bonus Program, the Participant will not be entitled to any award or payment under the Bonus Program and will forfeit any such payment. 

		
	iii.
	If a Participant’s employment is terminated (voluntarily or involuntarily) prior to the vesting of any shares issued as a portion of an award under the Bonus Program, such shares will be forfeited by the Participant.

		
	d)
	The Committee and the Compensation Committee retain the right to make equitable judgments with regard to the awarding, funding and the distribution of awards under the Bonus Program.   

3

		
	e)
	Taxes and other deductions will be withheld as required by law and in compliance with Essent's internal policies.  Cash payments will not be considered part of any Participant’s base salary.

		
	f)
	Repurchase of Shares. As a condition to the receipt of shares upon vesting, the Participant will make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding obligations that may arise in connection with such shares.  The Participant may satisfy the withholding requirement by making a payment in cash, or, by having shares withheld from the share award.

g)  401(k). With respect to cash payments only (and not share awards) under the Bonus Program, deductions for the 401(k) Savings Plan will be taken at the Participant’s deferral rate in effect at the time of payment.  Cash payments are subject to all applicable laws and regulations and 401(k) plan laws requirements and constraints.
h)  Life Insurance and Other Benefits.  Participant’s base salary will remain the basis for life insurance, accidental death and disability and long and short term disability.  Any award under this Bonus Program will not increase the level of these benefits. 
		
	i)
	Leave of Absence. Participant’s bonus will be pro-rated for any time away from work for approved leave of absence in excess of two weeks.

		
	j)
	409A Compliance. This Bonus Program is intended to comply with the short term deferral rule set forth in the regulations under section 409A of the Internal Revenue Code of 1986, as amended (“Code”) in order to avoid application of Section 409A to this Bonus Program.  This Bonus Program shall be administered in accordance with Section 409A of the Code.  

		
	k)
	Conflict.  In the event of a conflict between the terms of this Bonus Program and the terms of a Participant’s individual employment or award agreement, the terms of the applicable employment or award agreement shall control.

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