Document:

Exhibit
10.5

Execution Copy

AMENDMENT
NO. 1 TO COLLABORATION,

DISTRIBUTION AND LICENSE AGREEMENT

This Amendment No. 1 to Collaboration, Distribution
and License Agreement (“Amendment No. 1”) is made and effective as of July 15,
2004 by and between Millennium Pharmaceuticals, Inc., a Delaware corporation,
with offices at 40 Landsdowne Street, Cambridge, Massachusetts 02139-4815,
U.S.A. (“Millennium”) and Ortho Biotech Products, L.P., a New Jersey limited
partnership, with offices at Route 22 East, Bridgewater, New Jersey 08807-0914,
U.S.A. (“OBI”).

INTRODUCTION

A.            The Parties entered into that certain Collaboration,
Distribution and License Agreement effective as of June 30, 2003 (the “Agreement”);

B.            On and subject to the terms and conditions set forth in
this Amendment No. 1 and the Agreement (as amended), Millennium and OBI
therefore desire to amend the Agreement on the terms and conditions set forth
below.

NOW, THEREFORE, for and
in consideration of the mutual convenants contained herein, Millennium and OBI
hereby agree as follows:

1.             Definitions and Cross References.  Unless otherwise specified herein, each
capitalized term shall have the meaning assigned to it in the Agreement and
each reference to a Section or Article shall refer to the corresponding Section
or Article in the Agreement.

2.             New Sections 1.98 and 1.99.  Section 1.98 shall be renumbered as Section
1.100.  The following new Sections 1.98
and 1.99 shall be inserted immediately following Section 1.97:

                “Section
1.98  “Millennium Marker Know-How” shall
mean any Millennium Know-How pertaining to (a) markers that (i) relate to the
safety or efficacy of any drug (including combinations of drugs) and (ii) are
derived from, developed or first discovered by Millennium or on behalf of
Millennium by an academic collaborator, in each case, using patient clinical
samples obtained under the Development Plan, or any Millennium Know-How related
to such patient clinical samples or their use, or any OBI Know-How related to
such patient clinical samples or their use, or (b) any use of such markers.

Section 1.99  “OBI Marker Know-How” shall mean any OBI
Know-How pertaining to (a) markers that (i) relate to the safety or efficacy of
any drug (including combinations of drugs) and (ii) are derived from, developed
or first discovered by OBI or on behalf of OBI by an academic collaborator, in
each case, using patient clinical samples obtained under the Development Plan,
or any Millennium Know-How related to such 

 1
 

 

clinical samples or their
use, or any OBI Know-How related to such clinical samples or their use, or (b)
any use of such markers.”

3.             Section 3.1(a). 
Section 3.1(a) shall be amended by deleting it in its entirety and
replacing it with the following:

“3.1(a)    Development License.  Millennium hereby grants to OBI (i) a
co-exclusive (with Millennium) right and license, with right to grant
sublicenses, under Millennium Intellectual Property, to Develop the Product in
the Field in the License Territory,  (ii)
a non-exclusive right and license, with the right to grant sublicenses, under
Millennium Intellectual Property, to Develop the Product in the Field in the
U.S, and (iii) a non-exclusive, fully paid-up right and license, with the right
to grant sublicenses under Millennium Marker Know-How and Millennium Patent Rights
pertaining thereto, to use and exploit Millennium Marker Know-How for any
purpose.”

4.             Sections 3.1(d) and 3.1(e).  Sections 3.1(d) and 3.1(e) are amended by
inserting “(i), (ii)” immediately following “3.1(a)” each time such term is
used in Section 3.1(d) and 3.1(e) respectively.

5.             New Section 3.2(d).  The following new Section 3.2(d) shall be
inserted immediately following Section 3.2(c):

“(d)         OBI Marker Know-How and Related OBI
Patent Rights.  OBI hereby grants to
Millennium, a non-exclusive, fully paid-up right and license, with the right to
grant sublicenses under OBI Marker Know-How and OBI Patent Rights pertaining
thereto, to use and exploit OBI Marker Know-How for any purpose.”

6.             New Section 4.2(f).  The following new Section 4.2(f) shall be inserted
immediately following Section 4.2(e):

“(f)          With respect to each clinical study
under the Development Plan where a Party is responsible for assuming the
operational lead for the Development activities of such study in a particular
country or countries (as set forth in Part I of Exhibit D or as otherwise
agreed by the GPT and approved by the JSC), as appropriate, that Party may
request the other Party to transfer certain of its obligations under an IND
that such other Party owns in the applicable countries for the purpose of
assisting the lead operational Party in performing such responsibilities.  Subject to the agreement of the Party owning
the applicable IND (the “Transferring Party”), the operational lead Party (“Delegated
Sponsor”) will be responsible for the obligations transferred to it (each, a “Delegated
Responsibility” or collectively, “Delegated Responsibilities”), if any, by the
Transferring Party in the Delegated Sponsor’s role as the designated contract
research organization and as described in a document titled “The Transfer of
Obligations of Client Under 21 CFR Subpart D,” or its equivalent foreign
counterpart, which in each case the Parties shall execute and will be appended
to this Agreement as Exhibit L.   Any
such transfer of such obligations in the United States will be construed as a
transfer of those obligations described therein in accordance with 21
CFR§312.52.  With respect to any
obligation of 

 2
 

 

sponsors under 21 CFR
Subpart D or its foreign equivalent that is not expressly transferred to the
Delegated Sponsor in accordance with this Section 4.2(f), the Transferring
Party shall retain responsibility for such non-transferred obligation(s) in the
applicable country or countries in accordance with its responsibility as a
sponsor under the applicable IND and the terms of this Agreement.  Furthermore, with respect to each clinical
study for which the Parties intend to designate a Delegated Sponsor, as a
condition precedent to the transfer of any Delegated Responsibility to such
Delegated Sponsor, the Delegated Sponsor agrees to the following:

(i)            it
will only use informed consents, investigator brochures and clinical trial
agreements that are substantially in the form of the Delegated Sponsored
templates of such documents which have been furnished to the Transferring Party
and approved in advance in writing by the Transferring Party;

(ii)           it
will not subcontract the performance of any of the Delegated Responsibilities
to a Third Party without the Transferring Party’s prior written consent, such
consent to be given upon prompt consideration and not unreasonably withheld;

(iii)          it
will perform the Delegated Responsibilities in accordance with the terms and
conditions of this Agreement, including, without limitation, in compliance with
applicable Law, Good Clinical Practice and Good Laboratory Practice; and

(iv)          it
will permit the Transferring Party and its representatives and representatives
of regulatory agencies, during normal business hours, to review the Delegated
Sponsor’s standard operating procedures and records pertaining to the Delegated
Responsibilities and to inspect the facilities used to perform those
responsibilities.”

7.             Section 4.4(a). 
Section 4.4(a) shall be amended by inserting the following sentences
immediately following the second sentence thereto:

“The Transferring Party
under Section 4.2(f) with respect to any IND it owns shall be solely
responsible for all contacts and communications with the Regulatory Authorities
with respect to such IND, provided, however, that the Transferring Party shall
afford the Delegated Sponsor under Section 4.2(f) active participation in
contacts and communications with such Regulatory Authorities.  In addition, the Delegated Sponsor under such
IND, shall notify the Transferring Party 
immediately, and in no event later than one (1) day, after it receives
any contact or communication from any Regulatory Authority relating in any way
to the Delegated Responsibilities or such IND and will provide the Transferring
Party with copies of such communications within one (1) day of receipt of such
communication by the Delegated Sponsor.”

8.             New Section 4.7. 
The following new Section 4.7 Research Studies shall be inserted
immediately following Section 4.6:

 3
 

 

 

“Section 4.7  Research Studies.  To the extent that the Development Plan
includes any research study involving the use of clinical samples or clinical
data that, in each case, are obtained, generated or developed thereunder, the
Parties agree that each Party will disclose and transfer to the other Party any
raw data it obtains or generates in performing those research studies (to the
extent that it Controls such data) along with a final report containing key
conclusions from that study.”

9.             Section 11.11(c)(iii).   Section 11.11(c)(iii) shall be amended by
restating the entire subsection (iii) as follows:

“Any Losses involving a
Third Party products liability claim or Action (other than such Losses entitled
to indemnification under subsection (c)(i) or (c)(ii)) shall (a) be borne by
Millennium to the extent such Losses were incurred (x) with respect to the
Development of the Product conducted by Millennium, except to the extent of any
claims related to manufacturing or design defects of OBI, or any Product
Manufactured by Millennium or (y) with respect to the Commercialization of the
Product in the U.S. and (b) be borne by OBI to the extent such Losses were
incurred (x) with respect to the Development of the Product conducted by OBI,
except to the extent of any claims related to manufacturing or design defects
of Millennium, or any Product Manufactured by OBI or (y) with respect to the
Commercialization of the Product in the License Territory.”

10.           Exhibit L.  The Agreement is amended by adding a new
Exhibit L to be attached to the Agreement in accordance with Section 4.2(f).

11.           Prior to the effective date of this
Amendment No. 1, Millennium expressly delegated to OBI pursuant to a letter
agreement, certain of its sponsor obligations under its clinical trial
application filed in the United Kingdom with respect to Protocol
26866138-MMY-3001; Phase 3b, entitled, “An International Single-Arm Protocol to
Provide Expanded Access to VELCADE® for Patients With Multiple Myeloma Who Have
Received at Least Two Previous Lines of Therapy and are Refractory to or
Have Relapsed After Their Last Therapy for Multiple Myeloma” to be conducted by
OBI in the License Territory.  The
Parties agree that with respect this clinical study and any other clinical
study pursuant to which Millennium expressly delegated certain of its sponsor
responsibilities to OBI prior to the effective date of this Amendment No. 1,
the terms set forth in this Amendment No. 1 under Sections 2 through 9 shall
apply as of the date such responsibilities were so delegated to OBI.  The Parties will use Diligent Efforts to
execute any necessary documents to bring the delegation of such
responsibilities for such clinical studies into compliance with the terms of
this Section 11.

12.           Millennium shall provide to OBI, for
use under the Development Plan, data Controlled by Millennium related to
pharmacogenomic studies which were generated prior to the Effective Date under
the 025 VELCADE clinical trial.  Any OBI
Know-How generated through use of such data shall be deemed “OBI Marker
Know-How”.  Any Millennium Know-How
pertaining to markers that (i) relate to the safety or efficacy of any drug
(including combinations of drugs) and (ii) are derived from, 

 4
 

 

developed or first
discovered by Millennium or on behalf of Millennium by an academic
collaborator, in each case, in connection with a research study that commenced
in accordance with the Development Plan after the effective date of this
Amendment No. 1 and involves the use of patient samples obtained under the 025
VELCADE clinical trial, shall be deemed “Millennium Marker Know-How”.

13.           Miscellaneous.

13.1         Continuing Effect.  This Amendment No. 1 shall be effective for
all purposes as of the date first written above.  Except as otherwise expressly modified by
this Amendment No. 1, the Agreement shall remain in full force and effect in
accordance with its terms.

13.2         Counterparts.  This Amendment No. 1 may be executed in
counterparts, each of which shall be deemed to be an original and together
shall be deemed to be one and the same instrument.

IN WITNESS WHEREOF, Millennium
and OBI have caused this Amendment No. 1 to be duly executed by their
authorized representatives under seal, in duplicate on the dates written herein
below.

MILLENNIUM
PHARMACEUTICALS, INC.

	
  By:

  	
  /s/ Kenneth M.
  Bate

  	
   

  	
   

  
	
   

  	
  Title: CFO

  	
   

  	
   

  
	
   

  	
  Date: July 16,
  2004

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ORTHO BIOTECH PRODUCTS, L.P.

  
	
   

  	
   

  	
   

  
	
  By: Ortho Biotech Inc., its managing general partner

  
	
   

  
	
  By:

  	
  /s/ Joaquin
  Duato

  	
   

  	
   

  
	
   

  	
  Title: President

  	
   

  	
   

  
	
   

  	
  Date: August 13,
  2004

  	
   

  	
   

  
					

 

 5Exhibit 10.28

FIRST AMENDMENT

THIS FIRST
AMENDMENT (the “Amendment”) is made and entered into as of September 6, 2006,
by and between CA-PARK PLAZA LIMITED
PARTNERSHIP, a Delaware limited partnership (“Landlord”) and CYPRESS
BIOSCIENCE, INC., a Delaware corporation (“Tenant”).

RECITALS

A.            Landlord (as successor by conversion to EOP-Park
Plaza, L.L.C., a Delaware limited liability company) and Tenant are parties to
that certain lease dated July 10, 2002 (the “Lease”).  Pursuant to the Lease, Landlord has leased to
Tenant space currently containing approximately 5,673 rentable square feet, 4,791 of which is usable space
(the “Premises”) described as Suite No. 325
on the 3rd floor of
the building commonly known as Park Plaza located at 4350 Executive Drive, San
Diego, California (the “Building”).

B.            The Lease by its terms shall expire on July 31,
2007 (“Prior Termination Date”), and the
parties desire to extend the Term of the Lease, all on 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.             Remeasurement of Premises and the
Building.  Landlord and Tenant acknowledge and
agree that Landlord has remeasured Premises and that, according to such
remeasurement, the rentable square footage of the Premises as of the Extension
Date (as hereinafter defined) is 5,673 square
feet, 4,791 of which is usable space and
the Rentable Square Footage of the Building is 73,061 square feet.  For
the period prior to the Extension Date, the rentable area of the Premises and
the Building shall remain as set forth in the Lease and Tenant’s Pro Rata Share
shall not change.  However, commencing on
the Extension Date and continuing throughout the Extended Term (as hereinafter
defined), the rentable area of the Premises, the Building and Tenant’s Pro Rata
Share for the Premises shall be adjusted to reflect such remeasurement.  Tenant and Landlord shall have no further
right to remeasure the Premises during the Extended Term.

2.             Extension.  The Term of the Lease is hereby
extended and shall expire on July 31, 2012, 
(“Extended Termination Date”), unless
sooner terminated in accordance with the terms of the Lease.  That portion of the Term commencing the day
immediately following the Prior Termination Date (“Extension
Date”) and ending on the Extended Termination Date shall be referred
to herein as the “Extended Term”.

3.             Base Rent.  As of the Extension Date, the
schedule of Base Rent payable with respect to the Premises during the Extended
Term is the following:

	
  Months of Term or

  Period

  	
   

  	
  Annual Rate Per Square

  Foot

  	
   

  	
  Monthly Base Rent

  	
   

  
	
  8/01/07-7/31/08

  	
   

  	
   

  	
  $

  	
  33.00

  	
   

  	
  $

  	
  15,600.75

  	
   

  
	
  8/01/08-7/31/09

  	
   

  	
   

  	
  $

  	
  34.20

  	
   

  	
  $

  	
  16,168.05

  	
   

  
	
  8/01/09-7/31/10

  	
   

  	
   

  	
  $

  	
  35.40

  	
   

  	
  $

  	
  16,735.35

  	
   

  
	
  8/01/10-7/31/11

  	
   

  	
   

  	
  $

  	
  36.60

  	
   

  	
  $

  	
  17,302.65

  	
   

  
	
  8/01/11-7/31/12

  	
   

  	
   

  	
  $

  	
  37.80

  	
   

  	
  $

  	
  17,869.95

  	
   

  

 

All such Base Rent shall be payable by Tenant in accordance with the
terms of the Lease.

4.     Additional Security Deposit.  No
additional security deposit shall be required in connection with this
Amendment. Effective as of the Extension Date and subject to the remaining terms
of Article VI, and provided: (i) Tenant has timely paid all Rent due under this
Lease during the 12 month period immediately preceding the effective date of
any reduction of the Security Deposit, (ii) Tenant’s financial condition is
equal to or greater than its financial condition as of August 3, 2006; (iii)
Tenant is not in default under the Lease; and (iv) Tenant is in 100% occupancy
of the Premises, Tenant shall have the right to reduce the amount of the
Security Deposit so that the new Security Deposit amount will be reduced from $31,462.42 to $20,000.00 effective as of
August 1, 2007.  If Tenant is not
entitled to reduce the Security Deposit as of the reduction effective date due
to Tenant’s 

 1
 

failure to satisfy the conditions set forth herein or in the Lease,
Tenant shall not have the right to reduce the Security Deposit.  Notwithstanding anything to the contrary
contained herein, if Tenant has been in Default under the Lease at any time
prior to the effective date of any reduction of the Security Deposit and Tenant
has failed to cure such default within any applicable cure period, then Tenant
shall have no further right to reduce the amount of the Security Deposit as
described herein.

If Tenant is entitled to a reduction in the Security Deposit, Tenant
shall provide Landlord with written notice requesting that the Security Deposit
be reduced as provided above (the “Reduction Notice”).  If Tenant provides Landlord with a Reduction
Notice, and Tenant is entitled to reduce the Security Deposit as provided
herein, Landlord shall refund the applicable portion of the Security Deposit to
Tenant within 45 days after the later to occur of (a) Landlord’s receipt of the
Reduction Notice, or (b) the date upon which Tenant is entitled to a reduction
in the Security Deposit as provided above.

5.             Tenant’s Pro Rata Share.  For the period commencing on the Extension Date
and ending on the Extended Termination Date, Tenant’s Pro Rata Share for the
Premises is 7.7647%.

6.             Expenses and Taxes.  For the
period commencing on the Extension Date and ending on the Extended Termination
Date, Tenant shall pay for Tenant’s Pro Rata Share of Expenses and Taxes in
accordance with the terms of the Lease, provided, however, during such period,
the Base Year for the computation of Tenant’s Pro Rata Share of Expenses and
Taxes is amended from 2002 to 2007. Notwithstanding the foregoing, Tenant shall
not be obligated to pay Tenants’ Pro Rata Share of Expense Excess or Tax Excess
for the period commencing August 1, 2007 and ending July 31, 2008.

7.             Improvements to Premises.

7.01.        Condition of Premises.  Tenant
is in possession of the Premises and accepts the same “as is” without any
agreements, representations, understandings or obligations on the part of
Landlord to perform any alterations, repairs or improvements, except as may be
expressly provided otherwise in this Amendment or the Lease.

7.02.        Responsibility for Improvements
to Premises.  Landlord shall perform improvements to the
Premises in accordance with the Work Letter attached hereto as Exhibit A.

8.             Other Pertinent Provisions.  Landlord
and Tenant agree that, effective as of the date of this Amendment (unless
different effective date(s) is/are specifically referenced in this Section),
the Lease shall be amended in the following additional respects:

8.01.        Conference Facility.  Landlord
currently provides a conference facility (the “Conference Facility”) located
within the Equity Office San Diego portfolio of buildings, accommodating groups
of people for use by building tenants (including Tenant) on a reserved
basis.  In the event Tenant desires to
utilize the Conference Facility, Tenant shall call (800) 430-7715 in advance,
prior to the date on which Tenant desires to utilize such Conference Facility.
The reservations are on a first come first served basis and are subject to the
prevailing market rate. Landlord, in Landlord’s sole and absolute discretion,
may discontinue to provide for the Conference Facility at any time.

8.02.        Deleted Provisions.  Effective
as of the Extension Date, the Acceleration Option and the Right of First Offer
set forth in Sections I & II of Exhibit E. of the Lease shall be deleted in
their entirety and of no further force or effect.

8.03.        Renewal Option. The Renewal Option set forth in Exhibit E,
Section III of the Lease shall apply to this Amendment and shall remain in full
force and effect and the term “Termination Date” shall be replaced with the
term “Extended Termination Date”.

8.04.        Parking.  During
the Extended Term, Tenant shall maintain its existing parking rights as set
forth in the Lease.

9.             Miscellaneous.

9.01.        This Amendment and the attached exhibits,
which are hereby incorporated into and made a part of this Amendment, set forth the entire agreement between the 

 2
 

parties
with respect to the matters set forth herein. 
There have been no additional oral or written representations or
agreements.  Under no circumstances shall
Tenant be entitled to any Rent abatement, improvement allowance, leasehold
improvements, or other work to the Premises, or any similar economic incentives
that may have been provided Tenant in connection with entering into the Lease,
unless specifically set forth in this Amendment. Tenant agrees that neither Tenant nor its agents or any other
parties acting on behalf of Tenant shall disclose any matters set forth
in this Amendment or disseminate or distribute any information concerning the
terms, details or conditions hereof to any person, firm or entity without
obtaining the express written consent of Landlord.

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

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

9.04.        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 the same to
Tenant.

9.05.        The capitalized terms used in this Amendment
shall have the same definitions as set forth in the Lease to the extent that
such capitalized terms are defined therein and not redefined in this Amendment.

9.06.        Tenant hereby represents to Landlord that Tenant
has dealt with no broker other than IPC Commercial Real Estate in connection
with this Amendment.  Tenant agrees to
indemnify and hold Landlord, its members, principals, beneficiaries, partners,
officers, directors, employees, mortgagee(s) and agents, and the respective
principals and members of any such agents (collectively, the “Landlord Related Parties”) harmless from all claims of any
brokers claiming to have represented Tenant in connection with this
Amendment.  Landlord hereby represents to
Tenant that Landlord has dealt with no broker other than IPC Commercial Real
Estate in connection with this Amendment. 
Landlord agrees to indemnify and hold Tenant, its members, principals, beneficiaries,
partners, officers, directors, employees, and agents, and the respective
principals and members of any such agents (collectively, the “Tenant Related Parties”) harmless from all claims of any
brokers claiming to have represented Landlord in connection with this
Amendment.

Equity Office
Properties Management Corp. (“EOPMC”) is an affiliate of Landlord and
represents only the Landlord in this transaction.  Any assistance rendered by any agent or
employee of EOPMC in connection with this Amendment or any subsequent amendment
or modification hereto has been or will be made as an accommodation to Tenant
solely in furtherance of consummating the transaction on behalf of Landlord,
and not as agent for Tenant.

9.07.        Each signatory of this Amendment represents
hereby that he or she has the authority to execute and deliver the same on
behalf of the party hereto for which such signatory is acting.

[SIGNATURES ARE ON FOLLOWING
PAGE]

 3
 

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

	
  

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
  CA-PARK PLAZA LIMITED PARTNERSHIP, a

  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  EOM GP, L.L.C., a Delaware limited liability 

  
	
   

  	
  company, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Equity Office Management, L.L.C., a 

  Delaware limited liability company, its non-

  member manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Frank R. Campbell

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Frank Campbell

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CYPRESS BIOSCIENCE, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sabrina Johnson

  	
   

  
	
   

  	
  Name:

  	
  Sabrina Johnson

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
											

 

 4

EXHIBIT A

WORK LETTER

This Exhibit is attached to and
made a part of the Amendment by and between CA-PARK
PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”) and CYPRESS BIOSCIENCE, INC., a Delaware corporation (“Tenant”) for space in the Building located at 4350 Executive Drive, San Diego, California.

As used in this
Work Letter, the “Premises” shall be deemed to mean the Premises, as initially
defined in the attached Amendment.

1.                                       This
Work Letter shall set forth the obligations of Landlord and Tenant with respect
to the improvements to be performed in the Premises for Tenant’s use.  All improvements described in this Work
Letter to be constructed in and upon the Premises by Landlord are hereinafter
referred to as the “Landlord Work.”   It
is agreed that construction of the Landlord Work will be completed at Tenant’s
sole cost and expense, subject to the Allowance (as defined below).  Landlord shall enter into a direct contract
for the Landlord Work with a general contractor selected by Landlord.  In addition, Landlord shall have the right to
select and/or approve of any subcontractors used in connection with the
Landlord Work.  Landlord shall be
entitled to deduct a construction management fee for Landlord’s oversight of
the Landlord Work in an amount equal to 3% of the total cost of the Allowance,
as defined in Section 7.

2.                                       Tenant
shall be solely responsible for the timely preparation and submission to
Landlord of the final architectural, electrical and mechanical construction
drawings, plans and specifications (called “Plans”) necessary to construct the
Landlord Work, which plans shall be subject to approval by Landlord and
Landlord’s architect and engineers and shall comply with their requirements to
avoid aesthetic or other conflicts with the design and function of the balance
of the Building.  Tenant shall be
responsible for all elements of the design of Tenant’s plans (including,
without limitation, compliance with law, functionality of design, the
structural integrity of the design, the configuration of the Premises and the
placement of Tenant’s furniture, appliances and equipment), and Landlord’s
approval of Tenant’s plans shall in no event relieve Tenant of the
responsibility for such design.  If
requested by Tenant, Landlord’s architect will prepare the Plans necessary for
such construction at Tenant’s cost. 
Whether or not the layout and Plans are prepared with the help (in whole
or in part) of Landlord’s architect, Tenant agrees to remain solely responsible
for the timely preparation and submission of the Plans and for all elements of
the design of such Plans and for all costs related thereto.  Tenant has assured itself by direct
communication with the architect and engineers (Landlord’s or its own, as the
case may be) that the final approved Plans can be delivered to Landlord on or
before January 15, 2007 (the “Plans
Due Date”), provided that Tenant promptly furnishes complete information
concerning its requirements to said architect and engineers as and when
requested by them.  Tenant covenants and
agrees to cause said final, approved Plans to be delivered to Landlord on or
before said Plans Due Date and to devote such time as may be necessary in
consultation with said architect and engineers to enable them to complete and
submit the Plans within the required time limit.  Time is of the essence in respect of
preparation and submission of Plans by Tenant. 
If the Plans are not fully completed and approved by the Plans Due Date,
Tenant shall be responsible for one day of Tenant delay for each day during the
period beginning on the day following the Plans Due Date and ending on the date
completed Plans are approved.  (The word “architect”
as used in this Exhibit shall include an interior designer or space planner.)

3.                                       Landlord,
prior to commencing any construction of Landlord Work and within 60 days of
receiving the Plans, shall submit to Tenant a written estimate setting forth
the anticipated cost of the Landlord Work, including but not limited to labor
and materials, contractor’s fees and permit fees (the “Estimate’).  Within 3 Business Days thereafter, Tenant
shall either notify Landlord in writing of its approval of the Estimate, or
specify its objections thereto and any desired changes to the proposed Landlord
Work. Tenant, with Landlord’s reasonable approval, shall be allowed to
prioritize the various items comprising the Landlord Work and Tenant shall not
be required to authorize Landlord Work that would exceed the Allowance. Tenant
acknowledges that any amounts included in the Estimate in excess of the
Allowance shall be due and payable by Tenant. 
If Tenant notifies Landlord of such objections and desired changes to
the proposed Landlord Work, Tenant shall work with Landlord to reach a mutually
acceptable 

 1
 

alternative cost
estimate. Before commencing the Landlord Work, a final estimate (the “Final
Estimate”) shall be agreed upon by Tenant and Landlord and to the extent the
Final Estimate exceeds the Allowance, the Final Estimate shall specify the
costs payable by Tenant and Tenant shall pay to Landlord such costs, plus any
applicable state sales or use tax thereon, upon demand. The Final
Estimate does not include Excess Costs, as defined below.

4.                                       If
Landlord’s Final Estimate and/or the actual cost of construction shall exceed
the Allowance, if any (such amounts exceeding the Allowance being herein
referred to as the “Excess Costs”), Tenant shall pay to Landlord such Excess
Costs, plus any applicable state sales or use tax thereon, upon demand. The
statements of costs submitted to Landlord by Landlord’s contractors shall be
conclusive for purposes of determining the actual cost of the items described
therein.  The amounts payable by Tenant
hereunder constitute Rent payable pursuant to the Lease, and the failure to
timely pay same constitutes an event of default under the Lease.  Notwithstanding the foregoing, the parties
acknowledge that if there are no additional changes to the scope of the
Landlord Work, Landlord’s Final Estimate shall remain firm for 45 days of date
of such estimate.  The parties further
acknowledge and agree that if Landlord commences the Landlord Work within such
45 day period that Tenant shall not be responsible for any Excess Costs unless
Tenant requests for any change orders to the scope of the Landlord Work.  If Tenant requests for any change orders to
the scope of the Landlord Work after the 45 day period, all Excess Costs, if
any, shall be born by Tenant in accordance with this Exhibit.

5.                                       If
Tenant shall request any change, addition or alteration in any of the Plans
after approval by Landlord, Landlord shall have such revisions to the drawings
prepared, and Tenant shall reimburse Landlord for the cost thereof, plus any
applicable state sales or use tax thereon, upon demand.  Promptly upon completion of the revisions,
Landlord shall notify Tenant in writing of the increased cost which will be
chargeable to Tenant by reason of such change, addition or deletion. Tenant,
within, one Business Day, shall notify Landlord in writing whether it desires
to proceed with such change, addition or deletion. In the absence of such
written authorization, Landlord shall have the option to continue work on the
Premises disregarding the requested change, addition or alteration, or Landlord
may elect to discontinue work on the Premises until it receives notice of
Tenant’s decision, in which event Tenant shall be responsible for any Tenant
delay in completion of the Premises resulting therefrom. If such revisions
result in a higher estimate of the cost of construction and/or higher actual
construction costs which exceed the Allowance, such increased estimate or costs
shall be deemed Excess Costs pursuant to Paragraph 4 hereof and Tenant
shall pay such Excess Costs, plus any applicable state sales or use tax
thereon, upon demand.

6.                                       Following
approval of the Plans and the payment by Tenant of the required portion of the
Excess Costs, if any, Landlord shall cause the Landlord Work to be constructed
substantially in accordance with the approved Plans.  Landlord shall notify Tenant of substantial
completion of the Landlord Work.

7.                                       Landlord,
provided Tenant is not in default, agrees to provide Tenant with an allowance
(the “Allowance”) in an amount not to exceed $39,711.00 (i.e., $7.00 per
rentable square foot of the Premises) to be applied toward the cost of the
Landlord Work in the Premises.  If the
Allowance shall not be sufficient to complete the Landlord Work, Tenant shall
pay the Excess Costs, plus any applicable state sales or use tax thereon, as
prescribed in Paragraph 4 above. 
Any portion of the Allowance which exceeds the cost of the Landlord Work
or is otherwise remaining after December 15, 2007 shall accrue to the sole
benefit of Landlord, it being agreed that Tenant shall not be entitled to any
credit, offset, abatement or payment with respect thereto.  Notwithstanding the foregoing, Tenant may use
the Allowance pending full execution of this Amendment in the year 2006 or
2007.

9.                                       Tenant
acknowledges that the Landlord Work may be performed by Landlord in the
Premises during Normal Business Hours (defined as 7:00 a.m. to 6:00 p.m. on
Business Days and 9:00 a.m. to 1:00 p.m. on Saturdays) subsequent to the Extension Date.  Landlord and Tenant
agree to cooperate with each other in order to enable the Landlord Work to be
performed in a timely manner and with as little inconvenience to the operation
of Tenant’s business as is reasonably possible. Landlord, Tenant and the general contractor shall
cooperatively prepare a construction schedule that allows the the Landlord Work
to be: i) performed in a timely manner; ii) performed as reasonably possible on
Fridays, Saturdays and Sundays, and; iii) performed with as little
inconvenience to the operation of Tenant’s business as is reasonably possible.

 2
 

Notwithstanding anything
herein to the contrary, any delay in the completion of the Landlord Work or
inconvenience suffered by Tenant during the performance of the Landlord Work
shall not delay the Extension Date nor shall it subject Landlord to any liability
for any loss or damage resulting therefrom or entitle Tenant to any credit,
abatement or adjustment of Rent or other sums payable under the Lease.

10.                                 This
Exhibit shall not be deemed applicable to any additional space added to the
Premises at any time or from time to time, whether by any options under the
Lease or otherwise, or to any portion of the original Premises or any additions
to the Premises in the event of a renewal or extension of the original Term of
the Lease, whether by any options under the Lease or otherwise, unless
expressly so provided in the Lease or any amendment or supplement to the Lease.

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]