Document:

Exhibit 4(a)-5

 

[Form of LG&E 2040 Exchange Bond]

 

THIS IS A GLOBAL BOND HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS BOND) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL BOND MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2(a) OF PART II OF THE OFFICER’S CERTIFICATE ESTABLISHING THIS SERIES OF BONDS UNDER THE INDENTURE AND (III) THIS GLOBAL BOND MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE INDENTURE.

 

UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

 

	
No.
    	
CUSIP No.
    
	
 
    	
 
    
	
Principal   Amount of $
    	
 
    

 

LOUISVILLE GAS AND ELECTRIC COMPANY

 

FIRST MORTGAGE BOND, 5.125% SERIES DUE 2040

 

LOUISVILLE GAS AND ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the Commonwealth of Kentucky (herein referred to as the “Company”, which term includes any Successor Corporation under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co. or to its registered assigns, the principal sum of                                                        ($                      ) Dollars or such principal amount as is set forth in Schedule of Exchanges of Interest in the Global Bond attached hereto on November 15, 2040 (the “Stated Maturity Date”), and to pay interest on said principal sum semi-annually in arrears on May 15 and November 15 of each year (each, an “Interest Payment Date”), at the rate of 5.125% per annum until the principal hereof is paid or made available for payment.  The first Interest Payment Date for the Securities of this series shall be May 15, 2011, and interest on the Securities of this series will accrue from and including November 16, 2010, to and excluding the first Interest Payment Date, and thereafter will accrue from and including the last Interest Payment Date to which interest on the Securities of this series has been paid or duly provided for.  No interest will accrue on the Securities of this series with respect to the day on which the Securities are paid.

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Date of Authentication:

 

	
 
    	
THE   BANK OF NEW YORK MELLON, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Authorized Signatory
    

 

In the event that any Interest Payment Date is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect as if made on the Interest Payment Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the May 1 or November 1, whether or not a Business Day (each such date, a “Regular Record Date”), immediately preceding such Interest Payment Date, except that interest payable at Maturity will be payable to the Person to whom principal shall be paid.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a

 

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Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture referred to herein.  Interest on this Security will be computed on the basis of a 360-day year of twelve 30-day months.

 

Payment of the principal of and premium, if any, and interest at Maturity on this Security shall be made upon presentation of this Security at the corporate trust office of The Bank of New York Mellon in New York, New York, or at such other office or agency as may be designated for such purpose by the Company from time to time, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, and payment of interest, if any, on this Security (other than interest payable at Maturity) shall be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register, provided that if such Person is a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and such Person.

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and issuable in one or more series under an Indenture, dated as of October 1, 2010 (herein called the “Original Indenture” and, together with any amendments or supplements thereto and the Officer’s Certificate establishing the terms of the Securities of this series, the “Indenture,” which term shall have the meaning assigned to it in the Original Indenture), between the Company and The Bank of New York Mellon, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, including Supplemental Indenture No. 2 thereto, for a statement of the property mortgaged, pledged and held in trust, the nature and extent of the security, the conditions upon which the lien of the Indenture may be released and the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  The acceptance of this Security by the Holder hereof shall be deemed to constitute the consent and agreement by such Holder to all of the terms and provisions of the Indenture.  This Security is one of the series designated on the face hereof.

 

Prior to May 15, 2040, this Security is subject to redemption at the option of the Company, in whole at any time or in part from time to time, at a redemption price equal to the greater of:

 

(a)                                  100% of the principal amount of this Security to be so redeemed; and

 

(b)                                 as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the principal amount of this Security to be so redeemed (not including any portion of such payments of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 20 basis points,

 

plus, in either of the above cases, accrued and unpaid interest to the date of redemption.

 

Promptly after the calculation thereof, the Company shall give the Trustee written notice of the redemption price for the foregoing redemption.  The Trustee shall have no responsibility for any such calculation.

 

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On or after May 15, 2040, this Security is subject to redemption at the option of the Company, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of this Security to be so redeemed, plus accrued and unpaid interest to the date of redemption.

 

As used herein:

 

“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that redemption date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term to the Stated Maturity Date of this Security that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of this Security.

 

“Comparable Treasury Price” means, with respect to any redemption date:

 

a)                                      the average of five Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or

 

b)                                     if the Quotation Agent obtains fewer than five Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received.

 

“Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer” means:

 

a)                                      each of Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, and their respective successors, unless any of them ceases to be a primary U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), in which case the Company shall substitute another Primary Treasury Dealer; and

 

b)                                     any other Primary Treasury Dealers selected by the Company (after consultation with the Quotation Agent).

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount), as provided to the Quotation Agent by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.

 

Notice of redemption shall be given by mail to Holders of Securities, not less than 30 days nor more than 60 days prior to the date fixed for redemption, all as provided in the Indenture.  As provided in the Indenture, notice of redemption at the election of the Company as aforesaid may state that such redemption shall be conditional upon the receipt by the applicable Paying Agent or Agents of money

 

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sufficient to pay the principal of and premium, if any, and interest, on this Security on or prior to the date fixed for such redemption; a notice of redemption so conditioned shall be of no force or effect if such money is not so received and, in such event, the Company shall not be required to redeem this Security.

 

In the event of redemption of this Security in part only, a new Security or Securities of this series of like tenor representing the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of all series affected at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless (a) such Holder shall have previously given the Trustee written notice of a continuing Event of Default; (b) the Holders of 25% in aggregate principal amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity; (c) the Trustee shall not have received from the Holders of a majority in aggregate principal amount of the Outstanding Securities a direction inconsistent with such request; and (d) shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

The Securities of this series are issuable only in registered form without coupons, and in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written

 

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instrument or transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and Tranche, of authorized denominations and of like tenor and aggregate principal amount, shall be issued to the designated transferee or transferees.

 

As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series and Tranche are exchangeable for a like aggregate principal amount of Securities of the same series and Tranche of any authorized denominations, as requested by the Holder surrendering the same, and of like tenor upon surrender of the Security or Securities to be exchanged at the office or agency of the Company for such purpose.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

The Company shall not be required to execute and the Security Registrar shall not be required to register the transfer of or exchange of (a) Securities of this series during a period of 15 days immediately preceding the date notice is given identifying the serial numbers of the Securities of this series called for redemption or (b) any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes (subject to Sections 305 and 307 of the Indenture), whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New York (including, without limitation, Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act shall be applicable and except to the extent that the law of the any other jurisdiction shall mandatorily govern.

 

As used herein, “Business Day,” means any day, other than a Saturday or Sunday, that is not a day on which banking institutions or trust companies in The City of New York, New York, or other city in which a paying agent for this Security is located, are generally authorized or required by law, regulation or executive order to remain closed.  All other terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, member, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

 

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Unless the certificate of authentication hereon has been executed by the Trustee referred to herein by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

Date of Security:

 

	
 
    	
LOUISVILLE   GAS AND ELECTRIC COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL BOND

 

The following exchanges of a part of this Global Bond for an interest in another Global Bond, or exchanges of a part of another Global Bond for an interest in this Global Bond, have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of
   decrease in
   Principal
   Amount of this
   Global Bond
    	
 
    	
Amount of
   increase in
   Principal
   Amount of this
   Global Bond
    	
 
    	
Principal
   Amount of this
   Global Bond
   following such
   decrease (or
   increase)
    	
 
    	
Signature of
   authorized
   signatory of
   Trustee or Bond
   Custodian
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

 

 

[please insert social security or other identifying number of assignee]

 

 

[please print or typewrite name and address of assignee]

 

 

the within Security of LOUISVILLE GAS AND ELECTRIC COMPANY and does hereby irrevocably constitute and appoint                                          , Attorney,  to transfer said Security on the books of the within-mentioned Company, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    

 

 

[signature of assignee]

 

Notice:  The signature to this assignment must correspond with the name as written upon the face of the Security in every particular without alteration or enlargement or any change whatsoever.

 

 

SIGNATURE GUARANTEE

 

 

(Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.)Exhibit 10.1

 

THIRD AMENDMENT TO COMMERCIAL LEASE

 

Duffy Hartwell LLC, as successor in interest to Duffy Hartwell Limited Partnership, (“LESSOR”) and Synta Pharmaceuticals Corporation, as successor in interest to Shionogi BioResearch Corp., (“LESSEE”) (the LESSOR and the LESSEE are collectively referred to as the “Parties” in this Third Amendment) are landlord and tenant, respectively, under a certain Commercial Lease dated November 4, 1996 (“Initial Lease Agreement”), as amended by a First Amendment to Commercial Lease dated August 30, 2006 (“First Amendment”), as amended by a Second Amendment to Commercial Lease dated May 27, 2008 (“Second Amendment”) (the Initial Lease Agreement, First Amendment, and Second Amendment shall be collectively referred to herein as “Lease Agreement”) for that certain premises containing approximately 34,520 rentable square feet, more or less (the “Leased Premises”), in the building located at 45 Hartwell Avenue, Lexington, MA (the “Building”) and hereby agree as follows:

 

Whereas, the Parties have agreed to further amend the Lease Agreement by this Third Amendment to Commercial Lease (“Third Amendment”) to adjust relevant provisions of the Lease Agreement pursuant to the terms and conditions stated herein. Unless otherwise expressly stated, all references to “lease” or “Lease” in the Lease Agreement or this Third Amendment shall apply to and include the Lease Agreement and, effective December 1, 2011, this Third Amendment.

 

Now therefore, for consideration of $1.00 and other mutual and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both LESSOR and LESSEE, effective on and after the date of execution set forth below, the Lease Agreement is hereby further amended to reflect the following changes:

 

3.                                       TERM:

 

This paragraph is hereby amended with the addition of the following:

 

The Term of the Lease Agreement is hereby extended for five (5) years commencing on December 1, 2011 and ending on November 30, 2016 and shall apply to the entire Leased Premises.

 

4.                                       RENT:

 

This paragraph is hereby amended as follows:

 

Commencing December 1, 2011, the LESSEE shall pay to the LESSOR base rent for the Leased Premises at a combined total base rent rate of $852,070.00 dollars per year, payable in advance in monthly installments of $71,005.83 (which base rent rate reflects a blended rate of $26.00 per rentable square foot for the Initial Premises and $21.50 per rentable square foot for the Expansion Premises). The LESSEE shall pay base rent and additional rent for the entire Leased Premises to the LESSOR monthly, in advance, not later than the first day of each calendar month. Payments shall be pro-rated on a per diem basis should any payment become due during a portion of any monthly period.

 

5.                                       SECURITY DEPOSIT:

 

This paragraph is hereby amended with the addition of the following:

 

 

Upon the execution of this Third Amendment, the LESSEE shall pay to the LESSOR the amount of $7,743.14 dollars which, in addition to the $63,262.69 previously paid (for a total of $71,005.83), shall be held as a security for the LESSEE’S performance as herein provided and promptly refunded to the LESSEE at the end of this lease subject to the LESSEE’S satisfactory compliance with the conditions hereof. The LESSEE shall maintain at all times a security deposit equivalent to a minimum of one month’s total base rent, including, if applicable, any and options to renew or extend.

 

7.                                       UTILITIES:

 

This paragraph is hereby amended with the addition of the following:

 

LESSEE shall have the right and option, at LESSEE’S sole cost and expense, to install separate meters or check meters or otherwise separate any and all utilities serving the Leased Premises to allow for direct billing from a utility service provider or to allow for separate metering of the utility or utilities used in the Premises. However, any work performed to install separate meters or otherwise separate said utilities shall be subject to the prior review, approval and supervision of the LESSOR. Said review, approval or supervision shall not constitute a warranty or opinion regarding workmanship or the compliance or noncompliance with applicable local, state, regulatory or federal laws, ordinances, bylaws or regulations. LESSEE shall be solely responsible for obtaining all approvals, licenses, permits and inspections necessary to conduct said work. LESSEE shall be solely responsible for the current and continuous compliance of said work, the Leased Premises, and any areas of the Building or property which are affected by said work, with applicable local, state, regulatory or federal laws, ordinances, bylaws or regulations for any of said work associated with or conducted on the Leased Premises. Said work shall be conducted with the same or better quality materials as currently used and shall be completed in a good and workmanlike manner and finish. Once the LESSEE commences said work the LESSEE shall continue said work and diligently pursue the completion thereof. LESSOR shall have access, upon reasonable notice, to the Leased Premises to inspect said work. In addition to the above, as an Alteration/Addition, said work shall comply with the terms and conditions of Section 12 of the Lease Agreement, as amended, regarding an Alteration/Addition by LESSEE. Upon the completion of said work (a) if the meter installed is a direct meter such that LESSEE will receive a separate bill for its utility consumption directly from the applicable service provider, the LESSEE shall pay for such separately metered utilities directly to the service provider and shall no longer be responsible for paying a proportionate share of any utility which is separately metered and paid directly to a service provider, and (b) if the meter installed is a check meter or other meter that measures the quantity of the applicable utility consumed in the Premises but the charges for such utilities are billed directly to LESSOR, then LESSEE shall pay its proportionate share of such utility at the applicable Utility Rate (as hereafter defined).  The “Utility Rate” shall mean the total amount charged by the applicable utility provider for the utility and billing period in question, divided by the total quantity of such utility consumed during such billing period.  For example, if 1000 gallons of water were used in the Building for May 2011 and the total charge by the utility provider for such 1000 gallons of water is $54.00 ($.04 for gallons 1-100; $.05 for gallons 101-500; and $.06 for gallons 501-1000), then the Utility Rate for May 2011 shall be $.054 per gallon (i.e., $54.00/1000 = $.054 per gallon Utility Rate).

 

 

22.                                 BROKERAGE:

 

This paragraph is hereby supplemented with the addition of the following:

 

LESSOR and LESSEE represent to each other that neither party has dealt with any broker or brokers in connection with this Third Amendment other than Richards Barry Joyce & Partners and Glenn Commercial Group, which will be paid by the LESSOR in full and without contribution from LESSEE pursuant to a separate agreement. LESSOR and LESSEE agree that each will hold harmless and indemnify the other from any loss, cost, damage and expense, including reasonable attorney’s fees incurred by LESSOR or LESSEE for a commission or finder’s fee as a result of the falseness of this representation.

 

25.                                 OTHER PROVISIONS:

 

a.                                       Section 25(a) of the Lease Agreement is hereby deleted and replaced with the following: It is also understood and agreed that the following items listed below, which are attached to the Initial Lease Agreement, the Second Amendment, or Third Amendment, are part of this agreement and are hereby incorporated by reference and all other exhibits, attachments, or items previously listed in this Section 25(a) are hereby deleted.

 

Exhibits:                                                ·Commercial Lease Addendum, with the exception of subparagraph D which were deleted by amendment as moot pursuant to the First Amendment.

·A. INTENTIONALLY DELETED.

·A-1. INTENTIONALLY DELETED.

·A-2. Leased Premises (Initial Premises and Expansion Premises), which is attached to this Third Amendment.

·B. Buildout Obligations, excepting Paragraphs (a)-(c), which were deleted by amendment as moot.

·B-1. INTENTIONALLY DELETED.

·C. INTENTIONALLY DELETED.

·D. Right of First Refusal on Additional Space.

·E. Exclusions from Operating Expenses.

·F. INTENTIONALLY DELETED.

·G. INTENTIONALLY DELETED.

·H. INTENTIONALLY DELETED.

·I. Hazardous Waste Provisions.

 

b.                                      Section 25(b) of the Initial Lease Agreement is hereby deleted in its entirety.

 

26.                                 OPTION TO EXTEND:

 

This paragraph is deleted and replaced with the following:

 

Provided the LESSEE is not in material default hereunder after any notice and grace periods, LESSEE shall have one (1) five (5) year option to extend the lease term for the entire Leased Premises at a rent equal to the following: (a) for the Initial Premises the rent shall be the greater of market rate for equivalent lab space in similarly located buildings in Lexington within one (1) mile of the Leased Premises (including, without limitation, taking into consideration the age and condition of the building) or the rent then in effect as of the expiration date of the then current lease term for the Initial Premises (commencing December 1, 2011 the base rent for the Initial Premises is $26.00 per rentable square foot); plus (b) for the Expansion Premises the rent shall be the greater of market rate for equivalent office space in similarly located buildings in Lexington within one (1) mile of the Leased 

 

 

Premises (including, without limitation, taking into consideration the age and condition of the building) or the rent then in effect as of the expiration date of the then current lease term for the Expansion Premises (commencing December 1, 2011 the base rent for the Expansion Premises is $21.50 per rentable square foot). It is expressly understood that this option is applicable for an extension of the entire Leased Premises only. LESSOR is under no obligation to contribute to the cost of any lab space or LESSEE buildout, but If LESSEE adds lab space in the Expansion Premises with any financial contribution from the LESSOR then the rentable square footage of the additional lab space shall be considered part of the “Initial Premises” for the purpose of calculating rent in accordance with this Section 26. If the LESSEE adds lab space in the Expansion Premises without any financial contribution from the LESSOR then the rentable square footage of the additional lab space shall be considered part of the “Expansion Premises” for the purpose of calculating rent in accordance with this Section 26 (i.e., as if such lab space were office space and not lab space).  In no event shall the rent for the option term for the Initial Premises be less than the current total rent for the Initial Premises at the end of the current lease term. In no event shall the rent for the option term for the Expansion Premises be less than the current total rent for the Expansion Premises at the end of the current lease term. LESSEE must give LESSOR written notice it is exercising its extension option no later than nine (9) months prior to the expiration of the then current lease term. If LESSEE notifies LESSOR as provided herein, LESSOR shall notify LESSEE of its good faith estimate of the rent rate for the Initial Premises and the Expansion Premises (“Option Rate”) for the extended term; then within thirty (30) days of receiving the Option Rate for the extended term the LESSEE shall either:

 

(1) deliver a written notice accepting the rent rate, and thereafter the parties shall fully execute a lease amendment within thirty (30) days from the date the LESSOR receives LESSEE’S written notice accepting the rent rate, which lease amendment shall be on the same terms and conditions as the Lease except as otherwise provided in this Paragraph 26 and except that the base rent shall be the Option Rate and the lease term shall be extended by five (5) years; or

 

(2) deliver a written notice disagreeing with the Option Rate for the extended term, said notice to include LESSEE’S good faith estimate and proposal of the rent rate for the extended term, and the LESSOR and LESSEE shall attempt to agree upon a rent rate using their best good-faith efforts. If LESSOR and LESSEE fail to reach an agreement within thirty (30) days following LESSOR’S receipt of LESSEE’S above-mentioned written notice of disagreement (“Outside Agreement Date”), then:

 

(i)                                     LESSOR and LESSEE shall each appoint, at their own cost and expense, within ten (10) business days of the Outside Agreement Date, one arbitrator who shall by profession be a current commercial real estate broker or appraiser of comparable properties in Lexington within one (1) mile from the Leased Premises, and who has been active in such field over the last five (5) years. The two (2) arbitrators shall confer and within thirty (30) days from the date the last arbitrator was appointed, shall each recommend a rent rate in writing to both parties. In the event their recommendation is joint or equal, then this recommendation shall be the rent rate for the extended term; and

 

(ii)                                  In the event the arbitrators recommendation of the rent rate differs by five percent (5%) or less, then the average shall be the rent rate for the extended term; and

 

(iii)                               In the event the arbitrators recommendation differs by more than five percent (5%), then the two arbitrators so appointed shall, within five (5) business days of the date of the last written recommendation, agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for 

 

 

qualification of the initial two arbitrators. The third arbitrator shall, within fifteen (15) days after his/her appointment, recommend a rent rate in writing to both parties, and the two (2) closest of the three (3) recommendations shall then be averaged to establish the rent rate for the extended term; and

 

(iv)                              If either LESSOR or LESSEE fails to appoint an arbitrator within ten (10) business days after the applicable Outside Agreement Date, the arbitrator appointed by one of them shall reach a decision, notify LESSOR and LESSEE thereof, and such arbitrator’s decision shall be binding upon LESSOR and LESSEE; and

 

(v)                                 If the two arbitrators fail to agree upon and appoint a third arbitrator, or both parties fail to appoint an arbitrator, and this matter has not been otherwise resolved, then the appointment of the third arbitrator shall be made by the American Arbitration Association (or, if not available, an equivalent arbitration association) subject to the instructions set forth in this Paragraph 26; and

 

(vi)                              The cost of arbitration, as well as the above-mentioned third arbitrator, shall be paid by LESSOR and LESSEE equally; and

 

(vii)                           Notwithstanding the above, in no event shall the rent for the option term for the Initial Premises be less than the current total rent for the Initial Premises at the end of the current lease term. In no event shall the rent for the option term for the Expansion Premises be less than the current total rent for the Expansion Premises at the end of the current lease term.

 

In the event the rent for the option term is being established in accordance with Paragraph 26(2) above, then the parties shall fully execute a lease amendment within thirty (30) days from the date the rent rate is established in accordance with the above, which lease amendment shall be on the same terms and conditions as the Lease except as otherwise provided in this Paragraph 26 and except that the base rent shall be as established above and the lease term shall be extended by five (5) years from the date the Lease Agreement would have expired had the option to extend not been exercised. LESSEE shall be responsible for all payments necessary to maintain a security deposit equivalent to one (1) month’s base rent.  All other terms and provisions under the Lease Agreement, as amended, shall continue through the extended lease term.  In the event the LESSEE does not provide payment or has not delivered an executed lease amendment or written notice as provided in this Paragraph 26 and subparagraphs (1) and (2) above, the LESSEE shall be deemed to have waived its option to extend the lease term and this Lease Agreement shall terminate upon the expiration of the then current term.

 

Notwithstanding the above, LESSEE accepts the entire Leased Premises in its current “AS IS” condition and acknowledges that the Leased Premises, as delivered and currently constituted, is occupied and in the possession of the LESSEE and is suitable for the LESSEE’S intended use. LESSEE acknowledges that all work, if any, contemplated in the Lease Agreement to be performed by the LESSOR has been completed to the full satisfaction of the LESSEE. Both parties acknowledge and agree that no money is due or owed from one party to the other in connection with any allowances, credits or improvements made to the Leased Premises, pursuant to Exhibit B-1 of the Second Amendment.

 

The Parties acknowledge that the Initial Lease Agreement, First Amendment, Second Amendment and this Third Amendment represent the entire agreement between the Parties and that no other modification, written or otherwise, exists between the Parties. The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the

 

 

interpretation of the Initial Lease Agreement, First Amendment, Second Amendment or this Third Amendment or any exhibits or amendments thereto.

 

All other terms and provisions under the Lease Agreement shall remain unchanged, are in full force and effect, and are hereby ratified and affirmed. LESSOR and LESSEE hereby acknowledge and confirm that, to the best of their respective knowledge, neither the LESSOR nor the LESSEE is in default of any other term or condition of the Lease Agreement. In the event of a conflict between this Third Amendment and the Lease Agreement the terms of this Third Amendment shall govern. All capitalized terms used but not defined herein shall have the same definitions ascribed to such terms in the Lease Agreement.

 

IN WITNESS WHEREOF, the said Parties hereto set their hands and seals this 19th day of April, 2011.

 

 

	
LESSEE
    	
 
    	
LESSOR
    
	
Synta Pharmaceuticals   Corporation,
    	
 
    	
Duffy Hartwell LLC,
    
	
as successor in interest   to
    	
 
    	
as successor in interest to
    
	
Shionogi BioResearch   Corp.,
    	
 
    	
Duffy Hartwell LLC,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Keith Ehrlich
    	
 
    	
By:
    	
/s/ Steven P. Duffy
    
	
Name:
    	
Keith Ehrlich
    	
 
    	
Hartwell Management LLC, Manager
    
	
Its:
    	
CFO
    	
 
    	
Steven P. Duffy, Duly Authorized
    
	
Duly Authorized

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