Document:

Exhibit 10.2

 

APPENDIX A TO THE 2009 STOCK OPTION PLAN

 

STEADYMED, LTD.

 

2013 STOCK INCENTIVE SUBPLAN

 

ARTICLE I

PURPOSE

 

The purpose of this 2013 Stock Incentive Subplan (the “Plan”) of SteadyMed, Ltd., an Israeli corporation (the “Company”), is to specify the terms under which Options under the 2009 Stock Option Plan may be granted to individuals performing services on behalf of the Company in the United States for its subsidiary, SteadyMed Therapeutics, Inc., a Delaware Corporation. Except as provided herein, in the event of a conflict between the terms of the Plan and the 2009 Stock Option Plan, the terms of the plan which is more restrictive shall control. This Plan is authorized under Section 2(b) of the 2009 Stock Option Plan.

 

Like the 2009 Stock Option Plan, this Plan advances the interests of the Company and its shareholders by providing officers, directors, key employees, consultants and other independent contractors of the Company and Affiliates, upon whose judgment, initiative and efforts the Company and Affiliates largely depend, with additional incentive to perform in a superior manner. This Plan is also designed to attract and retain key personnel and to reward such individuals for achievement of corporate and individual performance goals.

 

ARTICLE II

DEFINITIONS

 

As used in this Plan or any Award hereunder, the following defined terms have the meanings indicated below:

 

“Affiliate” means an affiliate of the Company, with the word “affiliate” as defined in Rule 12b-2 promulgated by the SEC under the Exchange Act.

 

“Award” means a Stock Grant or a grant of an Option pursuant to the provisions of this Plan.

 

“Board of Directors” or “Board” means the board of directors of the Parent Company.

 

“Cause” means the termination of employment or other services for negligence, personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, failure to perform stated or assigned duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses); provided, however, if an Employee has an employment agreement with the Company or an Affiliate and such employment agreement defines a termination for “cause,” then “Cause” as used herein shall have the same meaning as set forth in such employment agreement.

 

 

“Change in Control” means the occurrence of any one of the following events, unless stated otherwise in an Award or as otherwise required by Code Section 409A to avoid the additional taxes therein: (a) any person or more than one person acting as a group becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of stock of the Company, that together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of stock of the Company (excluding any additional stock acquired by a person or more than one person acting as a group who prior to the acquisition is considered to own more than 50% of the total fair market value or total voting power of such securities); (b) the consummation of a merger or consolidation of the Company with or into any other corporation or any other corporate reorganization if more than 70% of the combined voting power of the voting stock of the Company or such surviving entity (or any parent thereof) outstanding immediately after such merger, consolidation, or reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or reorganization; (c) the complete liquidation or dissolution of the Company; or (d) the sale or disposition of all or substantially all of the Company’s assets (in one transaction or a series of related transactions within any period of twelve (12) consecutive months), other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (i) a shareholder of the Company in exchange for or with respect to its stock, (ii) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, 50% or more of the total value or voting power of all of the outstanding stock of the Company, or (iv) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person described in the preceding clause (iii). If an Option is granted as an Option subject to the requirements of Code Section 409A (Alternative B for Non-Qualified Stock Option grants under Section 2.4 of the Stock Option Agreement), then solely for purposes of determining whether a Change in Control has occurred under Section 2.4 (Alternative B) and 2.5 of the Stock Option Agreement, the term Change in Control shall mean a Change in Control described above, but only if such Change in Control would also be considered a “change in control event” under Treasury Regulations Section 1.409A-3(i)(5), and, solely for purposes of determining whether a Change in Control has occurred for purposes of Section 2.4 (Alternative B) of the Stock Option Agreement, the term Change in Control shall not include a transaction in which the ownership or assets of the Company as transferred to a subsidiary of the Company.

 

“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision(s) thereto and any regulations promulgated thereunder.

 

“Company” has the meaning set forth in Article I.

 

“Date of Grant” means the date an Award is effective pursuant to the terms hereof.

 

“Disability” has the meaning set forth in Code Section 409A or any regulations or other guidance thereunder.

 

“Effective Date” has the meaning set forth in Article XVI.

 

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“Employee” means any person who, on the particular Date of Grant or other time of determination as the context requires, is currently employed by the Company or an Affiliate.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes any successor provision(s) thereto and any regulations promulgated thereunder.

 

“Exercise Notice” has the meaning set forth in Section 10.1.

 

“Fair Market Value” means, as of a particular date, the fair market value of one share of Ordinary Shares as determined by the Plan Administrator in a manner consistent with Code Section 409A and any regulations or other guidance thereunder. It is the intent that such determinations shall be made in such a manner so that this Plan and Awards granted hereunder are not subject to the additional taxes referenced in Code Section 409A.

 

“Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option.

 

“Option” means an Award granted under Article VIII or Article IX of this Plan.

 

“Option Period” means the time period within which the Option holder may exercise the right to purchase Ordinary Shares under an Award.

 

“Ordinary Shares” means the ordinary or common stock of the Company.

 

“Participant” means an eligible person who receives an Option or Stock Grant pursuant to this Plan.

 

“Plan” has the meaning set forth in Article I.

 

“Plan Administrator” means the Board or if delegated by the Board, the compensation committee or other committee of the Board.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Stock Option Agreement” means the document entitled “SteadyMed, Ltd. 2013 Stock Incentive Subplan Stock Option Agreement” particular to the Participant which memorializes the grant of Ordinary Shares accompanied by such restrictions, if any, as may be determined by the Plan Administrator under Article VIII of this Plan.

 

“Stock Grant” means a grant of Ordinary Shares accompanied by such restrictions, if any, as may be determined by the Plan Administrator under Article VII of this Plan.

 

ARTICLE III

ADMINISTRATION

 

3.1          General. This Plan shall be administered by the Plan Administrator. The Plan Administrator shall act by vote or written consent of a majority of its members. The Plan Administrator is authorized, subject to the provisions of this Plan, to establish, amend, suspend

 

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and waive such rules and regulations as it deems necessary for the proper administration of this Plan and to make whatever determinations and interpretations in connection with this Plan it deems necessary or advisable with respect to Participants. The Plan Administrator’s decision and determinations under this Plan need not be uniform and may be made selectively among Participants, regardless of whether they are similarly situated. All determinations and interpretations made by the Plan Administrator shall be binding and conclusive on such Participants and on their legal representatives and beneficiaries.

 

3.2          Power and Authority of the Plan Administrator. Subject to the other terms and conditions set forth herein, the Plan Administrator shall have the power and authority, in its discretion, to determine from time to time which Participants will be granted Awards under this Plan, the number of Ordinary Shares subject to each Award, the exercise price of an Option and the restrictions, if any, that will be applicable to each Stock Grant and Option. In making all such determinations, the Plan Administrator shall take into account the duties, responsibilities and performance of each respective Participant, his, her or its present and potential contributions to the growth and success of the Company, his, her or its compensation, and such other factors as the Plan Administrator shall deem relevant to accomplishing the purposes of this Plan. In addition, the Plan Administrator shall have the power and authority to determine other terms, conditions, restrictions and other provisions of Awards, and to interpret, administer and make factual determinations with respect to this Plan and Awards and agreements and instruments related to or made under this Plan.

 

3.3          Limitation on Liability. No member of the Plan Administrator shall be liable for any action or determination made in good faith with respect to this Plan, any rule, regulation or procedure adopted by it pursuant thereto or any Awards granted under it.

 

ARTICLE IV

TYPES OF AWARDS

 

Awards under this Plan may be granted in any one or a combination of the following:

 

Stock Grants

 

Non-Qualified Stock Options

 

ARTICLE V

STOCK SUBJECT TO THIS PLAN

 

Subject to adjustment as provided in Article XIII, the maximum number of shares reserved for Stock Grants and for purchase pursuant to the exercise of Options under this Plan is subject to the number of shares authorized under the 2009 Stock Option Plan, all of which may be awarded in the form of Incentive Stock Options. The Ordinary Shares subject to this Plan may be either authorized but unissued shares or shares previously issued and reacquired by the Company. To the extent that Options are granted and Stock Grants are made under this Plan, the shares underlying such Options and Stock Grants will be unavailable for future grants under this Plan. However, to the extent that the Options or Stock Grants granted under this Plan are forfeited, terminate, expire or are canceled without having been exercised, the shares for such

 

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Options and Stock Grants shall not be counted against the maximum number of shares available for issuance hereunder and new Awards may be made with respect to such shares.

 

ARTICLE VI

ELIGIBILITY

 

Employees and independent contractors, including, without limitation, consultants, advisory board members, vendors, strategic partners, directors and officers of the Company or Affiliates, are eligible to receive Stock Grants and Non-Qualified Stock Options under this Plan.

 

ARTICLE VII

STOCK GRANTS

 

7.1          Terms of Stock Grants. Each Stock Grant may be accompanied by such conditions, restrictions and contingencies, or may be made without any, as may be determined in the discretion of the Plan Administrator as provided in the Award. Such conditions, restrictions and contingencies may include, without limitation, requirements that the Participant remain in the continuous employment or service of the Company or Affiliates for a specified period of time, that the Participant meet designated individual performance goals or that the Company, an Affiliate or a combination thereof meet designated organizational performance goals.

 

7.2          Issuance Procedures. A stock certificate representing the number of Ordinary Shares covered by a Stock Grant shall be registered in the Participant’s name and may be held by the Participant; provided,  however, unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, if a Stock Grant is subject to certain restrictions or performance obligations, the Ordinary Shares covered by such Stock Grant shall be registered in the Participant’s name and held in custody by the Company. Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, a Participant who has been awarded a Stock Grant shall have the rights and privileges of a shareholder of the Company as to the Ordinary Shares covered by such Stock Grant, including the right to receive dividends and the right to vote such shares, except that the dividends shall be accumulated in an escrow account by the Company and shall not be paid to the Participant unless and until the expiration of any restrictions or satisfaction of any performance requirements. None of the Ordinary Shares covered by the Stock Grant may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of prior to the expiration of any applicable restrictions or satisfaction of any performance requirements. Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, all of the Ordinary Shares covered by a Stock Grant shall be forfeited and all rights of a Participant who has been awarded such Stock Grant to such shares shall terminate without further obligation on the part of the Company in the event that any applicable restrictions or performance obligations do not expire or are not satisfied. Upon forfeiture of Ordinary Shares, such shares shall be transferred to the Company without further action by the Participant. Upon the expiration of the applicable restrictions and satisfaction of the applicable performance obligations, whether in the ordinary course or under circumstances set forth in Section 7.3, certificates evidencing Ordinary Shares subject to the related Stock Grant shall be delivered to the Participant, or the Participant’s beneficiary or estate, as the case may be, free of such restrictions and applicable restrictive legends, but still subject to applicable transfer restrictions as contemplated by Article XII.

 

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7.3          Acceleration. If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the vesting and the lifting of conditions, performance obligation requirements, restrictions and contingencies in whole or in part may be accelerated for any reason or upon the occurrence of any event.

 

ARTICLE VIII

NON-QUALIFIED STOCK OPTIONS

 

Non-Qualified Stock Options granted under this Plan are subject to the following terms and conditions:

 

8.1          Price. The purchase price per share of Ordinary Shares deliverable upon the exercise of each Non-Qualified Stock Option shall be equal to at least the Fair Market Value on the Date of Grant, unless the Plan Administrator provides otherwise in the specified Award, in which case the terms of such Non-Qualified Stock Option shall comply with the requirements of Code Section 409A to avoid the additional taxes referenced therein.

 

8.2          Option Period Generally. The Plan Administrator shall determine the Option Period during which each Non-Qualified Stock Option may be exercised as set forth in the Award.

 

8.3          Vesting. The Plan Administrator shall determine the date or dates on which each Non-Qualified Stock Option vests (may be exercised) as set forth in the Award and may provide that a Non-Qualified Stock Option is exercisable in installments. If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the shares comprising each installment may be purchased in whole or in part at any time after such installment becomes purchasable. Notwithstanding the foregoing, if the Non-Qualified Stock Option is granted as an Option subject to the requirement of Code Section 409A (Alternative B in Section 2.4 of the Stock Option Agreement), then there shall be no discretion to accelerate the earliest time at which the Non-Qualified Stock Option may be exercised as set forth in the Stock Option Agreement..

 

8.4          Acceleration. If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the vesting and the earliest time during which any Non-Qualified Stock Option may be exercised in whole or in part may be accelerated for any set reason or upon the occurrence of any set event. Notwithstanding the foregoing, if the Non-Qualified Stock Option is granted as an Option subject to the requirement of Code Section 409A (Alternative B in Section 2.4 of the Stock Option Agreement), then there shall be no discretion to accelerate the earliest time at which the Non-Qualified Stock Option may be exercised as set forth in the Stock Option Agreement.

 

8.5          Extension by Plan Administrator. The Plan Administrator may extend the Option Period of a Non-Qualified Stock Option to a date no later than the earlier of the latest date upon which the Non-Qualified Stock Option could have expired by its original terms under any circumstances or the seventh (7th) anniversary of the original date of grant of the Non-Qualified Stock Option. Notwithstanding the foregoing, if the Non-Qualified Stock Option is granted as an Option subject to the requirement of Code Section 409A (Alternative B in Section 2.4 of the

 

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Stock Option Agreement), the Plan Administrator shall not be allowed to consent to an exercise period other than the exercise period set forth in the original Stock Option Agreement.

 

8.6          Termination of Service.

 

(a)           Termination for Cause. Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, in the event a Participant’s employment with or provision of services to the Company are terminated by the Company or Affiliate for Cause, all rights under the Participant’s Non-Qualified Stock Options shall expire upon termination, regardless of whether the purchase right is vested.

 

(b)           Termination for Other Reasons. Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, upon the termination of a Participant’s employment with or provision of service to the Company and all Affiliates because of any reason other than for Cause, the Participant’s Non-Qualified Stock Options shall be exercisable only as to those shares which were immediately purchasable by the Participant at the date of termination and only for up to ninety (90) days following termination. Notwithstanding the foregoing, if the Non-Qualified Stock Option is granted as an Option subject to the requirement of Code Section 409A (Alternative B in Section 2.4 of the Stock Option Agreement), then there shall be no discretion to accelerate the earliest time at which the Non-Qualified Stock Option may be exercised as set forth in the Stock Option Agreement, and the exercise period shall be limited to the period set forth in the Stock Option Agreement.

 

8.7          Other Conditions, Restrictions, Contingencies. Each Award may specify other conditions, restrictions and contingencies to which the Non-Qualified Stock Option is subject as deemed appropriate in the sole discretion of the Plan Administrator.

 

ARTICLE IX

RESERVED

 

ARTICLE X

MISCELLANEOUS REQUIREMENTS OF OPTIONS

 

10.1        Method of Exercise. Each Option shall be exercised pursuant to the terms of this Plan by giving written notice to the Company at its principal place of business. Unless the Plan Administrator consents in writing to the contrary, the form of such notice shall be substantially similar to the exercise notice contained in Exhibit A, which may be amended and otherwise updated from time to time by the Plan Administrator (the “Exercise Notice”). No Option granted under this Plan may be exercised or Award granted unless, at the time of exercise or grant, Ordinary Shares to be issued qualifies for exemption from, or is registered pursuant to, applicable federal and state securities laws. In the event there is not then on file with the SEC an effective registration statement, including a prospectus relating to the shares subject to the Award, the Plan Administrator may require the Participant to execute and deliver to the Company prior to receipt by such Participant of any such shares under this Plan, an investment representations statement in form and substance satisfactory to the Company. Unless the Plan Administrator provides otherwise in the specified Award or consents in writing (as limited by

 

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Section 12 of the 2009 Stock Option Plan), shares may be purchased pursuant to an Option only upon full payment of the purchase price in cash.

 

10.2        Rights of a Shareholder. No Participant shall have any rights as a shareholder with respect to any shares covered by an Option until the date of issuance of a stock certificate for such shares. Nothing in this Plan or in any Award granted confers on any person any right to continue in the employ of the Company or Affiliates or to continue as a director, officer, consultant or independent contractor of the Company or Affiliates or interferes in any way with the right of the Company or Affiliates to terminate a Participant’s services at any time.

 

10.3        Limited Transferability. Except as otherwise provided in an Award or unless the Plan Administrator consents in writing to the contrary, Options may only be transferred pursuant to the laws of descent and distribution upon a Participant’s death. Except as otherwise provided in an Award or unless the Plan Administrator consents in writing to the contrary, during the lifetime of a Participant granted Options, such Options may only be exercised by such Participant or such Participant’s guardian or legal representative. The Plan Administrator has the power and authority to establish additional rules and regulations from time to time specifically governing the transfer of Options as it deems necessary or advisable.

 

10.4        Change in Control through Dissolution or Liquidation. In the event of dissolution or liquidation of the Company, the Company shall have no obligation to notify the Participant of such event and any Award that has not been previously exercised will terminate immediately prior to the consummation of such proposed action. Notwithstanding the foregoing, in the event of a voluntary liquidation of the Company that is not considered a merger or acquisition, the Administrator shall notify each Participant as soon as practicable, prior to the effective date of such proposed transaction, that the Participant will have the right to exercise his or her vested Awards within five (5) working days from receipt of such notice, but in any case not later than the effective date of such transaction. For an Option granted subject to the requirements of Code Section 409A (pursuant to Section 2.4 (Alternative B)) of a Stock Option Agreement, payment shall be allowed only to the extent allowed under Treasury Regulations Sections 1.409A-3(j)(4)(i) and 1.409A-3(j)(4)(ix). To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action, unless the Board has authorized a longer period to exercise such vested Awards.

 

10.5        Change in Control (Other than through Dissolution or Liquidation).

 

Except to the extent set forth in the Stock Option Agreement, in the event of a Change in Control (other than a complete dissolution or liquidation in Section 10.4 of this Plan):

 

(a)           Each outstanding Award shall be assumed or an equivalent Award substituted by the successor company or a parent or subsidiaries of the successor company. In the case of such assumption and/or substitution of Awards, appropriate adjustments shall be made in the number of Award shares and exercise price to reflect such action, and all other terms and conditions of the Award, such as the vesting dates, shall remain in force, all as will be determined by the Board whose determination shall be final.

 

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(b)           The Plan Administrator shall determine, in its discretion, the proper exchange ratio of the Awards and the fair value of such Awards for purpose of such substitution, and shall be authorized to accelerate the vesting date of any or all Awards and shall be authorized to make all necessary adjustments in the terms of the Awards and the substituted Awards (including, without limitation, adjustments in the exercise price) that are fair under the circumstances.

 

(c)           In the event that the successor company refuses to assume or substitute for the Awards, the Participant shall retain the right to exercise vested Awards, to the extent allowed under the Award, and the Plan Administrator shall notify the Participant in writing that such Awards shall be exercisable for a period not less than fifteen (15) days from the date of such notice, and the Awards shall terminate upon the expiration of such period (unless Section 2.4 of the Stock Option Agreement requires a shorter exercise period). Should the Change in Control occur within one year of the Date of Grant, such Participant shall be eligible to exercise a proportion of such Awards as determined by the Plan Administrator, however, to the extent the Award is subject to the requirement of Code Section 409A, this subsection shall only apply to the extent the Change in Control also meets the requirements of Change in Control for purposes of Section 2.4 of the Stock Option Agreement.

 

(d)           For the purposes of this Section 10.5, Awards shall be considered assumed if, following the Change in Control, the Award (or substitute award) confers upon the Participant the right to purchase or receive, for each Award share for which the Award was exercisable immediately prior to the Change in Control, the pro rata consideration (whether shares, stock options, cash, or other securities or property) received in the Change in Control by holders of shares for each share held on the effective date of the transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the Change in Control is not solely ordinary shares (or their equivalent) of the successor company or its parent, the Plan Administrator may, with the consent of the successor company, provide: for the consideration to be received upon the exercise of the Award, for each Award share, to be solely ordinary shares (or their equivalent) of the successor company or its parent equal in fair market value to the per share consideration received by holders of a majority of the outstanding shares in the Change in Control and provided further that the Plan Administrator may determine, in its sole discretion, that in lieu of such assumption or substitution of Awards for awards by the acquiring corporation or its parent or subsidiaries, such Awards will be substituted for by any other type of asset or property including cash which is fair under the circumstances. Such calculation may not result in a decrease in the initial exercise price such that an Option that is not subject to Code Section 409A becomes subject to Code Section 409A.

 

10.6        Bring-Along. Shares acquired upon exercise of an Option shall be subject to “bring-along” provisions in the Articles of Association of the Company, if any. In the event that the Award Shares acquired upon exercise of the Awards are not subject to “bring-along” provisions In the Articles of Association, then at any time prior to the Company’s initial public offering, in the event that (i) one or more bona fide offers (the “Offeror’’) is made to purchase Shares comprising at least seventy percent 70% of the Company’s issued and outstanding ordinary shares on an as-converted to ordinary shares basis (the “‘Threshold Percent”), (ii) such sale is conditioned upon the sale of Shares of the Company at not less than the Threshold

 

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Percent, and (iii) a majority of the Company’s shareholders, with the exception of the Grantees under this Plan (the “Proposing Shareholders”) propose to sell their Shares to such Offeror, then the Grantees shall be required, if so demanded by the Proposing Shareholders, to sell all Shares acquired by the Grantees pursuant to this Plan to such Offeror at the same price and under the same terms and conditions as in the offer made to the Proposing Shareholders. Should the Offeror purchase less than 100% of the Company’s Shares, the number of Shares purchased by the Offeror in excess of those sold by the Proposing Shareholders shall be divided proportionally between the Grantees. In such an event, any sale, assignment, transfer, pledge, hypothecation, mortgage) disposal or encumbrance of Award shares by the Grantee other than in connection with the proposed acquisition shall be absolutely prohibited.

 

10.7        Tag-Along and Other Restrictions. Shares acquired upon exercise of an Option will be subject to rights of first refusal, “tag-along” and all other transfer restrictions, limitations and provisions in the Articles of Association, to the extent that such provisions exist, to which Shares are subject.

 

ARTICLE XI

AGREEMENT WITH GRANTEES

 

Each Award will be evidenced by a written agreement, executed by the Participant and the Company or Affiliates. Each Award will describe the conditions for receiving such Award, the Date of Grant, the purchase price, if any, applicable Option Periods, performance or other periods, terms and conditions as may be required by applicable securities or tax laws and other terms and conditions that are not inconsistent with the terms of this Plan.

 

ARTICLE XII

SHAREHOLDERS AGREEMENT

 

The Plan Administrator may require that, as a condition precedent to the exercise of any Option under this Plan (or the receipt of any Stock Grant under this Plan), the Participant simultaneously execute a counterpart of a shareholders agreement or a joinder agreement to a shareholders agreement (in form satisfactory to the Company). Such shareholders agreement may contain, among other things, transfer restrictions pertaining to the Ordinary Shares issuable upon such exercise and the right of the Company or the other shareholders to repurchase such Ordinary Shares upon the happening of certain events.

 

ARTICLE XIII

DILUTION AND OTHER ADJUSTMENTS

 

In the event of any change in the outstanding Ordinary Shares of the Company by reason of any stock dividend or split, recapitalization, merger, consolidation, conversion, spin-off, reorganization, combination or exchange of shares, or other similar corporate change, or other increase or decrease in such shares without receipt or payment of consideration by the Company, the Plan Administrator will make such adjustments to previously granted Awards, to prevent dilution or enlargement of the rights of the Participant, including any or all of the following:

 

(a)           adjustments in the aggregate number or kind of Ordinary Shares that may be awarded under this Plan;

 

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(b)           adjustments in the aggregate number or kind of Ordinary Shares covered by Awards already made under this Plan; or

 

(c)           adjustments in the purchase price of outstanding Options.

 

No such adjustments may, however, materially change the value of benefits available to a Participant under a previously granted Award.

 

ARTICLE XIV

WITHHOLDING; TAXATION

 

14.1        Withholding. Unless the Plan Administrator provides otherwise in the specified Award or consents in writing, as a condition to the exercise of any Option granted hereunder or the issuance of a Stock Grant, or the release of stock certificates from the Company’s custody in connection with a Stock Grant, the Participant shall make payment to the Company in an amount required for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such exercise, issuance or release, as determined by the Plan Administrator in its sole discretion. If the Plan Administrator so provides in the specified Award or consents in writing, the Participant may make other arrangements for the payment of such withholding tax obligations, including, without limitation, the deduction of any such required withholding from any payments due or to become due to the Participant.

 

14.2        No Guarantee of Tax Treatment. Notwithstanding any provisions of this Plan, the Company does not guarantee nor make any warranty to any Participant or any other person with an interest in an Option that any Option intended to be exempt from Code Section 409A shall be so exempt, nor that any Option intended to comply with Code Section 409A shall so comply, nor will the Company or any Affiliate indemnify, defend or hold harmless any individual with respect to the tax consequences of any such failure.

 

ARTICLE XV

TERMINATION AND AMENDMENT OF THIS PLAN

 

The Shareholders may at any time, and from time to time, terminate, modify or amend this Plan in any respect and for any reason, including, but not limited to, for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws. No Awards under this Plan shall be granted after June 17, 2019. Except as otherwise provided in this Plan or the specified Award, such termination, modification or amendment may not affect the rights of a Participant under such Award.

 

ARTICLE XVI

EFFECTIVE DATE OF PLAN

 

Subject to the approval of the shareholders of the Company, the effective date of this Plan shall be as of            , 2013 (the “Effective Date”). This Plan shall remain in effect subject to the terms hereof, until the earlier of the following: (1) June 17, 2019; (2) termination of this Plan by the Board of Directors; or (3) the purchase of all shares to be delivered pursuant to this Plan.

 

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ARTICLE XVII

APPLICABLE LAW

 

This Plan will be administered in accordance with the laws of the State of Delaware. Notwithstanding any provision to the contrary in the 2009 Stock Option Plan, any dispute arising under this Plan shall be heard in U.S. District Court for the Northern District of California.

 

ARTICLE XVIII

COMPLIANCE WITH SECTION 16

 

With respect to Participants subject to Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of this Plan or action by the Plan Administrator fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Plan Administrator.

 

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EXHIBIT A

 

STEADYMED THERAPEUTICS, LTD.

 

2013 STOCK INCENTIVE SUBPLAN

 

EXERCISE NOTICE

 

SteadyMed, Ltd.

c/o SteadyMed Therapeutics, Inc.

2410 Camino Ramon, Suite 285

San Ramon, CA 94583

 

Attn: 2013 Stock Incentive Subplan Administrator

 

1.             Exercise of Option. Effective as of today,                 , 20      , the undersigned (“Option Holder”) hereby elects to exercise his or her option to purchase                 Ordinary Shares (the “Shares”) of SteadyMed, Ltd. (the “Company”), under and pursuant to the Company’s 2013 Stock Incentive Subplan (the “Plan”) and the Stock Option Agreement dated                 , 20      , (the “Option Agreement”), of which                 shares are pursuant to the exercise of incentive stock options and                 shares are pursuant to the exercise of non-qualified stock options.

 

2.             Delivery of Payment/Withholding. Enclosed is the full purchase price for the Shares and any applicable withholding (unless other arrangements have been made for such withholding), as set forth in the Option Agreement.

 

3.             Rights as Shareholder. Option Holder understands that until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist due to Option Holder’s exercise of the Option. The certificate evidencing the Shares shall be issued to Option Holder as soon as practicable after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in the Plan.

 

4.             Tax Consultation. Option Holder acknowledges that the Company has not guaranteed Option Holder or any other person with an interest in the Option Agreement that any Option intended to be exempt from Code Section 409A taxation shall be so exempt, nor that any Option intended to comply with Code Section 409A shall so comply, nor will the Company or any Affiliate indemnify, defend or hold harmless any individual with respect to the tax consequences of any such failure. Option Holder understands that Option Holder may suffer adverse tax consequences as a result of Option Holder’s purchase or disposition of the Shares. Option Holder represents that Option Holder has had the opportunity to consult with any tax consultants Option Holder deems advisable in connection with the purchase or disposition of the Shares and that Option Holder is not relying on the Company for any tax advice.

 

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5.             Entire Agreement. Option Holder delivers herewith the documents as may be reasonably required by the Company, including, without limitation, a joinder agreement to the Shareholders Agreement and the Investment Representations Statement attached hereto. These documents, together with the Plan and Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Option Holder with respect to the subject matter hereof.

 

	
Submitted by:
    	
 
    	
Accepted by:
    
	
 
    	
 
    	
 
    
	
OPTION HOLDER
    	
 
    	
STEADYMED, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Signature
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
Print Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date Received
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

A-2

 

ATTACHMENT 1 TO EXHIBIT A

 

INVESTMENT REPRESENTATION STATEMENT

 

	
OPTION HOLDER:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
COMPANY:
    	
 
    	
SteadyMed, Ltd.
    
	
 
    	
 
    	
 
    
	
SECURITY:
    	
 
    	
Ordinary Shares
    
	
 
    	
 
    	
 
    
	
AMOUNT:
    	
 
    	
            Ordinary   Shares
    
	
 
    	
 
    	
 
    
	
DATE:
    	
 
    	
 
    	
 
    

 

All capitalized terms not otherwise defined in the text of this Investment Representations Statement have the meanings attributed to them in the SteadyMed, Ltd. 2013 Stock Incentive Subplan (as the same may be amended, restated, supplemented and otherwise modified from time to time). In connection with the purchase of the above-listed securities (the “Securities”), the undersigned Option Holder represents to the Company the following:

 

(a)           The Option Holder has had an opportunity to discuss the Company’s business, management, financial affairs and the terms and conditions of the offering of the Ordinary Shares with the Company’s management. The Option Holder understands that such discussions, as well as other written information delivered by the Company to the Option Holder, were intended to describe the aspects of the Company’s business that, at the time such information was provided, it believed to be material.

 

(b)           The Option Holder is acquiring the Ordinary Shares for the Option Holder’s own account for investment, not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same; and the Option Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Ordinary Shares. If applicable, the Option Holder has not been formed for the specific purpose of acquiring the Ordinary Shares.

 

(c)           The Option Holder understands that the Ordinary Shares have not been, and will not be, registered under applicable state or federal securities law, and have been issued by reason of a specific exemption from the registration provisions of applicable state and federal securities laws which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Option Holder’s representations as expressed herein. The Option Holder understands that the Ordinary Shares are restricted securities under applicable state and federal securities laws and that, pursuant to these laws, the Option Holder must hold the Ordinary Shares indefinitely unless they are registered with the U.S. Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Option Holder acknowledges that the Company has no obligation to register or qualify the Ordinary Shares for resale. The Option Holder further acknowledges

 

A-3

 

that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Ordinary Shares, and on requirements relating to the Company that are outside of the Option Holder’s control, and that the Company is under no obligation, and may not be able, to satisfy.

 

(d)           The Option Holder understands that no public market now exists for any of the Ordinary Shares issued by the Company, and that the Company has made no assurances that a public market will ever exist for such shares.

 

 

	
 
    	
 
    	
 
    
	
 
    	
Signature of Option Holder
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    	
 
    
				

 

A-4Exhibit 10.4

 

BISHOP RANCH

 

EXECUTION

[BISHOP RANCH LOGO]

ORIGINAL

 

BISHOP RANCH

 

BUILDING LEASE

 

A Sunset Development Project      One Annabel Lane, Suite 201 | San Ramon, CA 94583       tel 925.866.0100 fax 925.866.1330       www.bishopranch.com

 

 

LEASE

 

THIS LEASE made as of this 20th day of September, 2012, between LANDLORD, whose full name and address is set forth below, and TENANT, whose full name and address is set forth below.

 

In consideration of the mutual covenants and conditions herein contained the parties hereby agree as follows:

 

	
1.                                      BASIC TERMS. The   following terms shall have the following meanings throughout this Agreement:
    
	
 
    	
 
    	
 
    
	
1.1                               Building:
    	
L, 2410 Camino Ramon, San Ramon, CA   94583
    
	
 
    	
 
    
	
1.2                               Landlord:
    	
Annabel Investment Company,
    
	
 
    	
 
    	
a California limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LANDLORD’S ADDRESS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FOR NOTICES:
    	
Sunset Development Company
    
	
 
    	
 
    	
 
    	
Attention: James Clancy, CFO
    
	
 
    	
 
    	
 
    	
One Annabel Lane, Suite 201
    
	
 
    	
 
    	
 
    	
San Ramon, CA 94583
    
	
 
    	
 
    	
 
    	
 
    
	
1.3                               Tenant:
    	
SteadyMed Therapeutics, Inc.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT’S ADDRESS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FOR NOTICES:
    	
2410 Camino Ramon, Suite 285
    
	
 
    	
 
    	
 
    	
San Ramon, CA 94583
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tenant Contact:
    	
MaryLyn Rigby
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Telephone Number:
    	
925-361-7111
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tenant Email:
    	
mrigby@steadymed.com
    
	
 
    	
 
    	
 
    	
 
    
	
1.4                                 Premises. Landlord is   leasing the premises (“Premises”)   known as Suite 285, consisting   of 2,021 rentable square feet, in   the building (“Building”)   located at
    

 

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2410 Camino Ramon, San Ramon California, as shown on Exhibit A attached hereto.

 

1.5                               Term: The period commencing on October 1, 2012 (the “Commencement Date”) and expiring on September 30, 2013 (the “Expiration Date”).

 

1.6                               Prior Occupancy. Landlord hereby agrees to grant Tenant possession of the Premises for Tenant’s Prior Occupancy from September 24, 2012 through September 30, 2012. During such Prior Occupancy period, Tenant shall have the right to install its furniture, fixtures and equipment with Landlord’s consent, which consent shall not be unreasonably withheld. The Prior Occupancy Period shall be rent free. During said Prior Occupancy Period all of the terms and conditions of the Lease are in full force and effect except for Section 4.

 

1.7                               Sole Permitted Use: General Office Purposes.

 

1.8                               Base Rent: THREE THOUSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00) per month as stipulated in Paragraph 4 below. Concurrently with Tenant’s execution of this Lease, Tenant shall pay to Landlord the sum of THREE THOUSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00) to be applied against Base Rent when it becomes due.

 

2.                                      PREMISES AND TERM. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, for the Term set forth in Paragraph 1 above, subject to the terms and conditions of this Agreement.

 

3.                                      USE. Tenant shall use the Premises only for the Permitted Use set forth in Paragraph 1 above and for no other uses whatsoever.

 

4.                                      RENT AND CHARGES. Tenant shall pay to Landlord monthly as base rent (“Base Rent”) for the Premises in advance on the Commencement Date and on the first day of each calendar month thereafter during the term of this Lease without deduction, offset, prior notice or demand, in lawful money of the United States of America, the sum of THREE THOUSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00).

 

5.                                      INTEREST AND LATE CHARGE.

 

5.1                               Late Charges. If any installment of Base Rent or other Rent is not received by Landlord or Landlord’s designee within five (5) days of the date such amount shall be due Tenant shall pay to Landlord a late charge equal to ten percent

 

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(10%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

 

5.2                               Interest. In addition to the late charges referred to above any late payment of Rent shall, at Landlord’s option, bear interest from the due date of any such payment to the date the same is paid at the Default Rate. As used in this Lease, “Default Rate” shall mean the lesser of twelve percent per annum (12%) or the maximum rate permitted by law.

 

6.                                      SECURITY DEPOSIT. Concurrently with Tenant’s execution of this Lease, Tenant shall deposit with Landlord the sum of THREE THOSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00) (the “Security Deposit”). The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease, including the provisions relating to the payment of any Rent, Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit to cure such default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount; Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) upon the expiration of the Lease term and Tenant’s vacating the Premises; provided, however, that Landlord may elect in its reasonable discretion to retain a portion of the Security Deposit in an amount composed of any or all of the following: (i) any unpaid amounts owed to Landlord, (ii) the cost of any damage (excluding normal wear and tear or damage resulting from the approved installation of wall hangings by Landlord) to the Premises, and (iii) the costs of removing any personal property refuse or debris left in the Premises at the expiration of the Lease.

 

7.                                      WORK AT PREMISES; TAXES ON IMPROVEMENTS; MECHANICS LIENS. Tenant takes the Premises in an “as is” condition. Tenant shall not make any

 

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alterations to the Premises without Landlord’s advance written consent. Tenant shall pay all taxes based on any property of Tenant, real or personal, which shall at any time be in the Premises or any other part of the Building, including Tenant’s installations, additions, improvements, fixtures and personal property. Tenant shall not suffer any mechanic’s lien to be filed against the Premises or any other part of the Project by reason of any work, labor, services, or materials performed at or furnished to the Premises for Tenant or anyone holding the Premises through or under Tenant. If a mechanic’s lien shall be so filed, Landlord may remove it at Tenant’s expense.

 

Landlord shall furnish to the Premises water, gas and electricity suitable for the intended use of the Premises, heat and air conditioning required in Landlord’s judgment for the comfortable use and occupancy of the Premises (for standard office use), and janitorial services in a first class manner.

 

8.                                      HOURS OF OPERATION. Landlord’s current hours of operation in Bishop Ranch (hereinafter “Hours of Operation”) are 7 a.m. to 7 p.m., Monday through Friday, excepting holidays (New Year’s Day, President’s Day, Memorial Day, July 4th (Independence Day), Labor Day, Thanksgiving, and Christmas Day). In the event the holiday falls on a weekend, the business day closest to the holiday will be considered to be the holiday. The building is available to Tenant 24 hours a day, seven (7) days a week, 365 days a year. The after hours rate for air conditioning and heating service after Landlord’s Hours of Operation is currently $50.00 per hour, per floor. This rate is subject to adjustment based upon the decrease or increase in utilities as charged by Landlord’s utility provider.

 

9.                                      ADDITIONAL UTILITIES COSTS. Except for services used outside of the Hours of Operation or any special equipment of Tenant’s that runs 24/7 or if such equipment in Landlord’s reasonable judgment uses electricity or HVAC equipment in excess of amounts used for a typical office tenant in the Building the cost of utilities is included as part of the Base Rent. Sub-metered equipment or equipment that requires and uses excessive amounts of electricity and HVAC will be billed as additional rent to Tenant as Additional Utilities Costs. At Landlord’s sole discretion, Tenant can be offered above standard utility billing based on a mathematical computation of the BTU load of the equipment being operated in the space to arrive at a Kilowatt Hour use which would be applied to the market utility cost each month. This option would relieve the tenant of the obligation to purchase a sub-meter. Landlord may revoke said option at any time and require Tenant to sub-meter excess or additional utilities costs.

 

10.                               MAINTENANCE OF PREMISES. Tenant shall at all times observe the following rules and regulations with respect to the Premises: (a) Tenant shall maintain the

 

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Premises in a clean, sanitary, attractive and safe condition and in good repair; (b) Tenant shall not perform any act or carry on any practice which constitutes a nuisance or which Landlord shall otherwise reasonably determine to be offensive or dangerous; (c) Tenant shall store all trash and garbage at the locations designated by Landlord and shall not burn any trash or garbage in or about the Premises or anywhere else in the Building; (d) Tenant shall at all times comply with all laws, rules and regulations pertaining to the Premises or the conduct of Tenant’s business thereat promulgated by any governmental agency having jurisdiction with respect thereto (including, without limitation, the Americans with Disabilities Act); (e) Tenant shall not permit to be conducted on the Premises any act in violation of applicable laws, orders, rules and regulations; and (f) Tenant shall not use, bring upon, or generate at the Premises any substance which is now or hereafter deemed hazardous or toxic by any governing or regulatory body having jurisdiction. Tenant shall comply with such other reasonable rules and regulations as Landlord may from time to time adopt with respect to the Building. Landlord shall at all times keep and maintain the Building in good condition, order and repair, including the parking lot, roof, foundation and structural portions of the Building, as well as the mechanical, electrical, HVAC or other utility systems servicing the Premises, unless such repairs are necessitated by the acts or omissions of Tenant, its agents, contractors or employees, and provided, Landlord shall be under no obligations to make any capital replacements of the foregoing items.

 

11.                               SIGNS. Tenant shall not inscribe, paint or affix any sign, advertisement, display or notice on any part of the Premises, except as Landlord may approve in advance in writing.

 

12.                               ACCESS TO PREMISES. Landlord reserves the right to enter upon the Premises at all reasonable hours for the purpose of inspecting the same, or the use thereof by Tenant, or for making repairs or alterations to the Premises or any other space in the Building, whether required by this Lease, applicable law or otherwise, or for curtailing any emergency. The exercise by Landlord of any of its rights herein shall not be deemed an eviction or disturbance of Tenant’s use and possession of the Premises.

 

13.                               INSURANCE. Tenant shall maintain in full force and effect during the Term of this Lease, and at its own cost and expense procure and continue in force the following insurance (i) commercial general liability insurance with respect to personal injury or death or property damage occurring at the Premises or arising out of Tenant’s use of the Premises or otherwise arising out of any act or occurrence at the Premises of not less than One Million Dollars ($1,000,000) per occurrence, (ii) workers compensation insurance as required by statute and

 

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employers liability insurance; and (iii) insurance insuring its inventory, fixtures and other personal property at the Premises covering damage by fire or other casualty to such property, in amounts not less than the full replacement cost of such property. If any contractor of Tenant performs any work at the Premises, said contractor shall also obtain the foregoing insurance. All the policies for the foregoing insurance shall name Annabel Investment Company, and its related affiliates and such other parties as Landlord may designate, as additional insured. Prior to the Commencement Date and at such times as the policies are to expire, Tenant shall furnish Landlord with certificates of insurance evidencing that such insurance is in effect or has been renewed, as the case may be. Tenant hereby waives all subrogation rights of its insurance carriers in favor of Landlord, its partners, officers, employees, and agents, and shall obtain from its insurer a waiver of subrogation in favor of Landlord and such other parties as Landlord designates as additional insured with respect to all such insurance.

 

14.                               WAIVER OF CLAIMS AND INDEMNITY.

 

(a)                                 Tenant shall protect, indemnify, defend and hold Landlord, its partners, members, officers, shareholders, directors, employees, agents and property managers harmless from and against any and all losses, damages, costs, claims, attorneys’ fees, expenses, liability, fines, and penalties arising from (i) any default or breach by Tenant in the observance or performance of any of the terms, covenants or conditions of this Lease by Tenant or (ii) any negligence or willful misconduct of Tenant or Tenant Representative in, on, or about the Premises, or any part of the Project, either during or prior to occupancy or during the Term of this Lease. Notwithstanding the foregoing, in no event shall Tenant be liable for indirect or consequential damages of Landlord (including lost profits) however occurring.

 

(b)                                 Landlord shall protect, indemnify, defend and hold Tenant, its partners, members, officers, shareholders, directors and employees harmless from and against any and all losses, damages, costs, claims, attorneys’ fees, expenses, liability, fines, and penalties arising from (i) any default or breach by Landlord in the observance or performance of any of the terms, covenants or conditions of this Lease by Landlord or (ii) any gross negligence or willful misconduct of Landlord or Landlord Representative in, on, or about the Premises, or any part of the Project, either during or prior to occupancy or during the Term of this Lease. Notwithstanding the foregoing, in no event shall Landlord be liable for indirect or consequential damages of Tenant (including lost profits) however occurring.

 

15.                               ASSIGNMENT. Tenant shall not sell, assign, mortgage, pledge or in any manner transfer this Agreement or any interest herein, nor without the prior written

 

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consent of Landlord sublet or license all or any part of the Premises, by operation of law or otherwise.

 

16.                               RELOCATION OF PREMISES.

 

16.1                        Conditions. For the purpose of maintaining an economical and proper distribution of Tenants throughout Bishop Ranch acceptable to Landlord, Landlord shall have the right from time to time during the term of this Lease to relocate Tenant within Bishop Ranch, subject to the following terms and conditions:

 

(a)                                 The rentable and usable areas of the new Premises must be of substantially equal size to the existing Premises (a variation of up to ten percent (10%) is permitted provided the Base Rent payable under this Lease is not increased);

 

(b)                                 Landlord shall pay the cost of providing tenant improvements in the new Premises comparable to the tenant improvements in the existing Premises;

 

(c)                                  Landlord shall pay the expenses reasonably incurred by Tenant to move to the new Premises, plus Tenant’s costs of door lettering, telephone relocation and reasonable quantities of new stationery;

 

16.2                        Notice. Landlord shall deliver to Tenant written notice of Landlord’s election to relocate Tenant, specifying the new location and the amount of Base Rent payable for the new Premises at least sixty (60) days prior to the date the relocation is to be effective. If the location of the new Premises is not reasonably acceptable to Tenant, Tenant for a period of ten (10) days after receipt of Landlord’s relocation notice, shall have the right (by delivering written notice to Landlord) to terminate this Lease. If Tenant so notifies Landlord, Landlord, at its option, may withdraw its relocation notice, in which event this Lease shall continue and Tenant shall not be relocated, or accept Tenant’s termination notice, in which event this Lease shall terminate effective as of the date the relocation was to be effective.

 

17.                               DAMAGE. If the Premises are damaged by fire, explosion, or other casualty or occurrence Landlord may by notice to Tenant elect to repair the Premises or terminate this Lease. In the event of termination by Landlord pursuant hereto, Tenant shall be entitled to a pro rata refund of any advanced rental payments made by Tenant.

 

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18.                               DEFAULT. If (i) Tenant fails to pay Rent or any other sum due or payable hereunder when due and such failure continues for five (5) days after the same is due , or (ii) if Tenant shall fail to perform or comply with any other term, condition or covenant on the part of Tenant to be observed herein, then, in any such event, Tenant shall be in breach hereunder and Landlord, at its option, any time thereafter, may terminate this Agreement by notice to Tenant and, upon service of said notice, this Agreement and the Term hereunder shall be terminated and Tenant shall immediately vacate the Premises in accordance with the provisions of this Agreement. If Tenant shall fail to vacate the Premises at the expiration of the Term, whether after Tenant’s breach or otherwise, Landlord may re-enter the Premises and remove Tenant and all persons, fixtures and property occupying the Premises and Landlord shall not be liable for any damages resulting therefrom. Upon a breach by Tenant hereunder Landlord shall also have all other rights available to it at law or equity. If Landlord shall terminate this Agreement after breach by Tenant, without limitation to any other right or remedy of Landlord, Tenant shall be liable to Landlord, as liquidated damages and not as a penalty, for a sum of money equal to the value of all Rent due hereunder for the remainder of the Term, less the fair market rental value of the Premises for the remainder of the Term. Tenant shall pay all costs, expenses and reasonable attorneys’ fees that may be incurred or paid by Landlord and its agents in successfully enforcing the covenants and agreements of this Agreement. If Tenant shall fail to comply with and perform any of Tenant’s obligations herein contained, Landlord shall have the right, but not the obligation, to perform any such obligations, and Tenant shall pay to Landlord on demand, as additional rent, a sum equal to the amount expended by Landlord in the performance of such obligations.

 

19.                               SURRENDER OF PREMISES. Upon the expiration of the Term Tenant shall surrender the Premises to Landlord in the same or better condition as the Premises were in upon delivery to Tenant, reasonable wear and tear excepted, and in a neat, clean and orderly condition and in good repair. Tenant shall remove any and all personal property of Tenant from the Premises at the expiration of the Term. If Tenant does not remove its property as herein provided such property shall be deemed abandoned by Tenant and Landlord may dispose of same as it sees fit. All costs of disposal are the responsibility of the Tenant.

 

20.                               BROKERAGE FEES.

 

INTENTIONALLY DELETED

 

21.                               NOTICES. Notices and demands required or permitted to be given hereunder shall be in writing given by personal delivery or be sent by certified mail, return receipt requested, addressed, if to Landlord, at the address set forth in

 

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Paragraph 1 above, or such other address as Landlord may designate by notice to Tenant from time to time, and, if to Tenant, at the address set forth in Paragraph 1 above, or such other address as Tenant may designate by notice to Landlord from time to time. Notices and demands shall be deemed to have been given when mailed or, if made by personal delivery, then upon such delivery.

 

22.                               ATTORNEYS’ FEES. If either Landlord or Tenant institutes any action or proceeding against the other to enforce any provision of this Lease, the non-prevailing party shall reimburse the prevailing party for all reasonable costs and expenses incurred by the prevailing party in the performance of this Lease, including court costs, expenses and reasonable attorneys’ fees.

 

23.                               ENTIRE AGREEMENT. There are no oral or written agreements or representations between Landlord and Tenant except as expressly set forth in this Lease. No modifications of this Lease will be binding upon Landlord or Tenant unless in writing and signed by each party. The terms, covenants and conditions contained herein shall inure to the benefit of, and be binding upon, Landlord and Tenant, and their respective heirs, successors and assigns.

 

24.                               SEVERABILITY. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances, other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

25.                               GOVERNING LAW. This Lease shall be construed in accordance with the laws of the state of California.

 

26.                               TIME OF THE ESSENCE. Time is of the essence with respect to the performance of each, every and all of the terms, conditions, promises and provisions of this Lease.

 

27.                               WAIVER OF CONSEQUENTIAL DAMAGES. Anything in this Lease to the contrary notwithstanding, Landlord shall not be liable to Tenant for any consequential, special or punitive damages and Tenant waives, to the full extent permitted by law, any claim for consequential, special or punitive damages, and any claim for loss of business or profits.

 

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28.                               LIMITATION OF LIABILITY. Neither the partners nor members comprising Landlord, nor the partners, members, shareholders, directors, officers, agents or employees of any of the foregoing (collectively, the “Parties”) shall be liable for the performance of Landlord’s obligations under this Lease. Tenant shall look solely to Landlord to enforce Landlord’s obligations hereunder and shall not seek any damages against any of the Parties. The liability of Landlord for Landlord’s obligations under this Lease shall not exceed and shall be limited to Landlord’s interest in the Building and Tenant shall not look to the property or assets of any other person or entity or to any other property of Landlord in seeking either to enforce Landlord’s obligations under this Lease or to satisfy a judgment for Landlord’s failure to perform such obligations, it being intended that neither Landlord nor any such person or entity shall be personally liable for any deficiency or judgment.

 

29.                               HOLDING OVER. If Tenant remains in possession of the Premises after the expiration or sooner termination of this Lease, all of the terms, covenants and agreements hereof shall continue to apply and bind Tenant so long as Tenant remains in possession insofar as the same are applicable, except that Tenant shall be deemed a tenant at sufferance and the Holdover Base Rent shall be one hundred fifty percent (150%) of the monthly Base Rent payable in the last month prior to the Termination or Expiration Date of this Lease. In addition, Tenant shall indemnify Landlord against any and all claims, losses and liabilities for damages resulting from Tenant’s failure to timely surrender possession, including, without limitation, any claims made by any succeeding tenant. Nothing herein shall be construed to grant to Tenant the right to remain in possession after the expiration of the Term.

 

30.                               PARKING. Tenant and Tenant’s employees, invitees and customers shall have the right to use the parking areas of the Building subject to such regulations and charges as Landlord shall adopt from time to time, and subject to the right of Landlord to restrict the use by Tenant and Tenant’s Representatives when in the sole judgment of Landlord such use is excessive for the parking area in relationship to the reasonable use required by other Tenants. If Landlord becomes obligated under applicable laws or regulations or any other directive of any governmental or quasi-governmental authority to pay or assess fees or charges for parking in the Building’s parking area, Tenant shall pay such amounts to Landlord as additional Rent.

 

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31.                               MISCELLANEOUS. Landlord reserves the right at any time to change the location or character of or make alterations in or additions to the Building. The failure of Landlord to insist upon performance by Tenant of any of the terms, conditions and covenants hereof shall not be deemed a waiver of any subsequent breach or default in the terms, conditions and covenants herein contained. All obligations (including indemnity obligations) herein shall survive the expiration of this Agreement. Nothing contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto. The submission of this Agreement for examination or execution does not constitute an offer or a reservation or an option for the Premises, and this Agreement shall become effective only upon execution by Landlord and delivery thereof to Tenant. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon the parties, and their respective successors and assigns. Neither party shall record this Agreement.

 

32.                              EXHIBITS AND ADDENDA. Exhibit A, B and C are attached hereto and incorporated herein by this reference.

 

 

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

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
Annabel Investment Company,
    	
 
    	
SteadyMed Therapeutics, Inc.
    
	
a California limited partnership
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
DocuSigned by:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
/s/ James L. Clancy
    	
 
    	
Name:
    	
/s/ Jonathan M.N. Rigby
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
CFO
    	
 
    	
Title:
    	
CEO
    

 

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EXHIBIT “A”

 

[FLOOR PLAN]

 

2,021 RSF

Bishop Ranch ,6 Building L

2410 Camino Ramon, Suite 285

San Ramon, CA 94583

 

1

 

EXHIBIT “A”

 

[SPACE PLAN]

 

2,021 RSF

Bishop Ranch ,6 Building L

2410 Camino Ramon, Suite 285

San Ramon, CA 94583

 

1

 

EXHIBIT “B”

 

RULES AND REGULATIONS

 

The following rules and regulations have been developed for the safety and well-being of all tenants. Any violation of these rules and regulations by Tenant shall constitute a default by Tenant under their lease. When using the term “Tenant”, this also includes their employees, vendors and guests.

 

1.                                      Tenant shall comply with all smoking laws. Smoking is prohibited inside the buildings, outdoor dining areas or within 25 feet of any building entries or exits. Smoking is permitted in designated smoking areas outside of the building, which from time to time can be relocated by Landlord at their discretion.

 

2.                                      No sign, placard, picture, advertisement, name or notice shall be inscribed, displayed, printed, affixed or otherwise displayed by Tenant on or to any part of the outside or inside of the Building or the Premises without the prior written consent of Landlord and Landlord shall have the right to remove any such sign, placard, picture, advertisement, name or notice without notice to and at the expense of Tenant. All approved signs or lettering on doors shall be printed, painted, affixed or inscribed at the expense of Tenant by a person approved by Landlord. Tenant shall not place anything or allow anything to be placed near the glass of any window, door, partition or wall which may appear unsightly from outside the Premises in Landlord’s sole discretion. Tenant shall not install any radio or television antenna, satellite dish, loud speaker, or other device on or about the roof area or exterior walls of the Building without prior written consent of Landlord. Such an installation may require the payment of additional rent.

 

3.                                      The sidewalks, halls, corridors, passages, exits, entrances, courtyards, vestibules, elevators and stairways or other parts of the Building not exclusively occupied by Tenant, shall not be obstructed by Tenant or used by it for any purpose other than for ingress to and egress from the Premises. The halls, corridors, passages, exits, entrances, courtyards, vestibules, elevators, stairways, balconies and roof are not for the use of the general public. No parcels or other articles shall be placed, kept or displayed in corridors, stairways, on window ledges, in windows or other public parts of the Premises. Tenant shall not permit its employees and invitees to congregate in the lobbies, corridors or other common areas of the Premises. Except as permitted in the lease, in no

 

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event may Tenant go upon the roof of the Building, or access any utility closets in the building or penthouse.

 

4.                                      Landlord will furnish Tenant with 10 keys to the Premises, free of charge. Additional keys and/or access cards shall be obtained only from Landlord and Landlord may make a reasonable charge for such additional keys. No additional locking devices shall be installed in the Premises by Tenant, nor shall any locking devices be changed or altered in any respect without the prior written consent of Landlord. All locks installed in the Premises excluding Tenant’s vaults and safes, or special security areas (which shall be proposed by Tenant in a written notice to Landlord and subject to reasonable approval by Landlord), shall be keyed to the master key system. Landlord may make a reasonable charge for any additional lock or any bolt (including labor) installed on any door of the Premises. Tenant, upon the termination of its tenancy, shall deliver to Landlord all keys to doors in the Premises. For any electronic security system installed by Tenant, Tenant may issue its own access cards but shall at all times retain the key override on Landlord’s master key system and building standard hardware at each door. Tenant shall abide by Landlord’s regulations with respect to the installation of such a system, including receiving specific approval for any installation of security equipment in common areas, or on suite entry doors. Tenant shall in no case cut or damage any door frames, stone, wood, metal or wallcovering in common areas and at all times shall observe standard mounting heights and locations approved by Landlord. All security system installations shall be removed and conditions restored at the termination of the lease at Tenant’s cost.

 

5.                                      The restrooms, commodes, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be deposited therein and Tenant shall bear the expense of any breakage, stoppage or damage resulting from its violation of this rule.

 

6.                                      Tenant shall not overload the floor of the Premises with files, safes or any other item without prior written consent of Landlord. Tenant shall pay the cost of structural review by Landlord’s structural engineer should such review be determined necessary in Landlord’s sole discretion.

 

7.                                      Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork or drywall or in any way deface the Premises or any part thereof. No boring, cutting

 

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or stringing of wires, laying of floor coverings, installation of wallpaper or paint, or any other construction work excluding low voltage tele/data cabling shall be permitted except as directed by Tenant to Landlord through a Tenant Request and performed and supervised by Landlord and affiliates. All tele/data cabling work shall conform to Landlord’s guidelines.

 

8.                                      Tenant shall not remove, alter or replace the ceiling light diffusers, light bulbs or ballasts, ceiling tiles or air diffusers in any portion of the Premises.

 

9.                                      Tenant may use freight elevators in accordance with such reasonable schedule as Landlord shall deem appropriate. Tenant shall schedule with Landlord, by written notice given no less than forty-eight (48) hours in advance, its move into or out of the Building which moving shall occur after 5:30 p.m. or on weekend days if required by Landlord in its sole discretion; and Tenant shall reimburse Landlord upon demand for any additional security or other charges incurred by Landlord as a consequence of such moving. The floors, corners and walls of elevators and corridors used for moving of equipment or other items in or out of the Project must be adequately covered, padded and protected and, Landlord may provide such padding and protection at Tenant’s expense if Landlord determines that such measures undertaken by Tenant or Tenant’s movers are inadequate. Landlord shall have the right to prescribe the weight, size and position of all heavy equipment or furnishings brought into the Building and also the times and manner of moving the same in or out of the Building. Heavy objects shall, if considered necessary by Landlord, stand on distribution plates of such thickness as is necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such heavy objects from any cause and all damage done to the Building by moving or maintaining any such heavy object or other property shall be repaired at the expense of Tenant. There shall not be used in any space, or in the public halls of the Building, either by any Tenant or others, any hand trucks except those equipped with rubber tires and side guards.

 

10.                               Tenant shall not employ any person or persons other than the janitor of Landlord for the purpose of cleaning the Premises unless otherwise agreed to by Landlord in writing. Tenant shall not cause any unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness. Landlord shall in no way be responsible to any Tenant for any loss of property on the Premises, however occurring, or for any damage done to the effects of Tenant by the janitor or any other employee or any other person. Janitor service

 

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will not be furnished on nights when rooms are occupied after 9:30 p.m. Window cleaning shall be done only by Landlord.

 

11.                               Tenant shall not use or keep in the Premises or the Building any weapon, kerosene, gasoline, flammable, combustible or noxious fluid or material, any device that produces flames, or that reaches abnormally high or low temperatures, any generator, or use any method of heating or air conditioning other than that supplied by Landlord. Written or e-mail permission from Landlord may grant not more than a 12 hour limited exception to this rule for catering purposes only assuming such use meets all applicable code restrictions.

 

12.                               Tenant shall not use, keep or permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to the Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with other tenants or those having business therein, whether by the use of any musical instrument, radio, electrical device or apparatus in connection with a loudspeaker or other sound system (including any bright, changing, flashing or moving light or lighting device, unusual noise, or in any other way, without Landlord’s prior written consent. No flashing or neon lights shall be used which can be seen outside the Building.

 

13.                               Tenant shall not have any animals or birds brought in or kept in or about the Premises, the Building, or the Complex.

 

14.                               Tenant shall assure that employees use the common areas and parking lot in a manner that preserves the quiet enjoyment for all Tenants of the Complex including observation of restricted parking spaces and designated smoking areas.

 

15.                               The Premises shall not be used for the storage of merchandise except as such storage may be incidental to the use of the Premises for general office purposes. Tenant shall not occupy or permit any portion of the Premises to be occupied for the manufacture or sale of liquor, weapons, narcotics, or tobacco in any form.

 

16.                               The Premises shall not be used for lodging or sleeping.

 

17.                               The Premises shall not be used for any illegal purposes.

 

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18.                               No cooking shall be done or permitted by Tenant on the Premises, except that use by Tenant of Underwriters’ Laboratory approved portable equipment for brewing coffee, tea and similar beverages and of microwave ovens approved by Landlord shall be permitted provided that such use is in accordance with all applicable federal, state and local laws, codes, ordinances, rules and regulations.

 

19.                               Landlord reserves the right to direct cabling contractors as to where and how tele/data wires and any other cables or wires are to be installed. Landlord will submit to Tenant its Cabling Guidelines and Regulations. Any deviation from such guidelines must be approved by Landlord. No boring or cutting for cables or wires will be allowed without the consent of Landlord.

 

20.                               No furniture, packages, supplies, equipment or merchandise will be received in the Building or carried up or down in the elevators, except between such hours and in such elevators as shall be designated by Landlord in its Move Guidelines. Couriers, caterers, and any other delivery persons shall use the building’s freight elevators in the buildings where they are present. In its use of such, Tenant shall not obstruct or permit the obstruction of walkways, ingress and egress to the Building and tenant spaces and at no time shall Tenant park vehicles which will create traffic and safety hazards or create other obstructions.

 

21.                               Outside of the Hours of Operation as defined in the Lease access to the Building or to the halls, corridors, elevators, or stairways in the Building, or to the Premises may be refused unless the person seeking access is known to the person or employee of the Building in charge and has a pass or is properly identified. Landlord shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. Tenant assumes all responsibility for protecting its Premises from theft, robbery and pilferage. In case of invasion, mob, riot, public excitement, or other commotion, the Landlord reserves the right to prevent access to the Building during the continuance of the same by closing the doors or otherwise, for the safety of the Tenants and protection of property in the Building. Landlord reserves the right to close and keep locked all entrance and exit doors outside of Hours of Operation and during such further hours as Landlord may deem advisable for the adequate protection of said Building and the property of its tenants, and to implement such additional security measures as Landlord deems appropriate for such purposes. The cost of such additional security measures, as reasonably allocated by Landlord to Tenant, shall be reimbursed by Tenant within thirty (30) days after receipt of Landlord’s demand therefor.

 

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22.                               Landlord shall furnish heating and air conditioning (HVAC) during the Hours of Operation outlined in the Lease to provide a reasonable comfort range determined at their discretion. In the event Tenant requires After Hours HVAC Landlord shall on notice provide such services at the rate established by Landlord, which may be adjusted from time to time based on utility and other costs. Tenant acknowledges that Landlord may encounter unforeseen breakdowns with Building equipment that may result in some interruption of HVAC services during Hours of Operation.

 

23.                               Landlord reserves the right to exclude or expel from the Building any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of the rules and regulations of the Building. No Tenant, employee or guest of Tenant may possess or consume illegal substances while on the property. No Tenant or employee of Tenant may violate any Local, State or Federal Statutes while on the property.

 

24.                               No vending machine or machines of any description shall be installed, maintained or operated upon the Premises without the written consent of the Landlord.

 

25.                               Tenant agrees that it shall comply with all fire and security regulations and training programs that may be issued from time to time by Landlord and shall cooperate fully with the fire life safety program of the Building as established and administered by the Landlord. This shall include participation by Tenant and its employees in exit drills, fire inspections, floor warden trainings and other programs relating to fire and life safety that may be established by Landlord from time to time. Tenant also shall provide Landlord with the name of a designated responsible employee to represent Tenant in all matters pertaining to such fire or security regulations. Tenant agrees that it will not do or permit anything to be done in the Premises or keep any article which shall in any way increase the rate of fire or other insurance on the Building or which is prohibited by fire laws or regulations or by any other applicable statutes, rules and regulation nor will Tenant use or permit the Premises to be used for any disorderly or extra hazardous purpose or for any other purpose than specified by Tenant’s Lease.

 

26.                               Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed as a waiver of those Rules and Regulations in favor of any other

 

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tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the Project. Additionally, to be valid any such waiver must be granted in writing or e-mail.

 

27.                               Canvassing, soliciting, peddling or distribution of handbills or other written material in the Building and Project is prohibited and Tenant shall cooperate to prevent same.

 

28.                               Landlord reserves the right to (i) select the name of the Project and Building and to make such change or changes of name, street address or suite numbers as it may deem appropriate from time to time, (ii) grant to anyone the exclusive right to conduct any business or render any service in or to the Building and its tenants, provided such exclusive right shall not operate to require Tenant to use or patronize such business or service or to exclude Tenant from its use of the Premises expressly permitted in the Lease, and (iii) reduce, increase, enclose or otherwise change at any time and from time to time the size, number, location, layout and nature of the common areas and facilities and other tenancies and premises in the Project and to create additional rentable areas through use or enclosure of common areas. Tenant shall not refer to the Project by any name other than the name as selected by Landlord (as same may be changed from time to time), or the postal address, approved by the United States Post Office. Without the written consent of Landlord, Tenant shall not use the name of the Building or Bishop Ranch in connection with or in promoting or advertising the business of Tenant or in any respect except as Tenant’s address. Without the written or email consent of Landlord, Tenant shall not use photos of the Building or Complex and for all such approved uses Tenant shall use Landlord’s current and approved photographs, unless such photo is a one-off feature of the Tenant’s brand or employee(s) in the context of Bishop Ranch and is separately approved.

 

29.                               Tenant shall store all its trash, recyclables and electronic waste within the Premises until removal of same is conducted by Landlord and landlord’s representatives. No material shall be placed in the trash receptacles or designated in any other way as trash if such material is of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash and garbage in the City of San Ramon without being in violation of any law or ordinance governing such disposal. Tenant shall make best efforts to comply with Landlords sustainability programs. Tenant is responsible for furnishing its own trash cans, which shall be of a reasonable size

 

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and quantity. Tenant shall appropriately dispose of electronic waste. Should Tenant retain any outside contractors for shredding or other services, Tenant shall receive e-mail or written permission from Landlord and shall furnish Landlord with a schedule, scope of work and certificate of insurance for such vendor, all of which is subject to the reasonable approval of Landlord. Tenant assumes all liability for said outside contractor’s while they are at the Complex.

 

30.                               The directory of the Building will be provided for the display of the name and location of tenants and Landlord reserves the right to exclude any other names therefrom. Any additional or changed name that Tenant shall desire to place upon the directory must first be approved by Landlord and, if so approved, a charge will be made for each such name or change.

 

31.                               Except with the prior written consent of Landlord, Tenant shall not sell, or permit the sale from the Premises of, or use or permit the use of any sidewalk or common area adjacent to the Premises for the sale, distribution or display of newspapers, magazines, periodicals, theater tickets or any other goods, merchandise or service, nor shall Tenant carry on, or permit or allow any employee or other person to carry on, business in or from the Premises for the service or accommodation of occupants of any other portion of the Building, nor shall the Premises be used for manufacturing of any kind, or for any business or activity other than that specifically provided for in Tenant’s lease. This extends to the use of websites, email, social media or other electronic or online media that are directed towards Bishop Ranch customers and can reasonably be viewed as solicitation and or abuse of a Tenant’s location or status as a Bishop Ranch tenant.

 

32.                               The word “Tenant” occurring in these Rules and Regulations shall mean Tenant and Tenant’s Representatives. The word “Landlord” occurring in these Rules and Regulations shall mean Landlord’s assigns, agents, clerks, employees and visitors.

 

33.                               Where conflicts are present between these Rule and Regulations and the other sections of the Lease, the Lease shall prevail.

 

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34.                               Landlord reserves the right to modify these Rules and Regulations at any time and shall distribute the new Rules and Regulations to Tenant via e-mail with each subsequent modification.

 

ACKNOWLEDGED AND ACCEPTED:

 

	
Landlord:
    	
 
    	
Tenant:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
DocuSigned by:
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ James L. Clancy
    	
 
    	
By:
    	
/s/ Jonathan M.N. Rigby
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
9/20/12
    	
 
    	
Date:
    	
9/10/2012
    

 

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