Document:

Exhibit 10.21

 

LSCA

Nuvios, Inc.

 

LABORATORY SERVICES AND CONFIDENTIALITY AGREEMENT*

 

THIS LABORATORY SERVICES AND CONFIDENTIALITY AGREEMENT is made as of this 31st day of March, 2004 (the “Effective Date”) by and between Charles River Laboratories, Inc., a Delaware corporation with a business address at 251 Ballardvale Street, Wilmington, Massachusetts 01887, acting through the divisions and at the locations set forth on Exhibit A attached hereto and made a part hereof (“Laboratory”) and Nuvios, Inc., a Delaware corporation with a business address at 197M Boston Post Road West, Marlborough, MA 01752 (“Sponsor”).

 

BACKGROUND

 

Laboratory is a contract research organization engaged in providing product discovery and development services.  The parties desire that Laboratory provide such services (the “Services”) under the terms and conditions of this Agreement.  The Services shall consist of individual studies (each, a “Study”) defined in a Protocol/Scope of Work (as hereinafter defined) and will be performed under these terms and conditions.  In consideration of the mutual promises and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

 

1.  The Study.  Laboratory shall render the Services as set forth in a Protocol and/or Scope of Work, Letter of Payment Authorization and Letter of Commitment (the Protocol and/or Scope of Work, Letter of Payment Authorization and Letter of Commitment are collectively referred to here as the “Supporting Documents”).  A “Protocol” and/or “Scope of Work” shall mean an attachment to this Agreement describing the nature, design and scope of the Study and the schedule of work to be performed during the course of an individual Study conducted by Laboratory for the Sponsor.  A “Letter of Payment Authorization” shall mean an attachment to this Agreement that describes with respect to a particular Study the price, fees and payment schedule for that Study and any modifications of the terms of this Agreement as applied to a particular Study.  A “Letter of Commitment” shall mean an attachment to this Agreement that describes a commitment of space and resources by the Laboratory.  In the event of a conflict between the terms contained in the Supporting Documents and this Agreement, the terms of this Agreement shall control, unless specifically agreed upon to the contrary in the Supporting Documents.  The Supporting Documents when signed by Laboratory and Sponsor shall be incorporated into and made a part of this Agreement.

 

2.  Conduct of the Research.

 

2.1.  Laboratory will maintain industry standards of professional conduct in the performance of the Study and in the preparation of all reports.  Laboratory will adhere to all government laws and regulations applicable to the conduct of the Study.  If applicable, and as set forth in the Protocol and/or Scope of Work, Laboratory will perform the Study in compliance with the current laboratory practices of the appropriate governmental regulatory agency(ies).

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

2.2.  Laboratory will conduct the Study in accordance with the Protocol and/or Scope of Work, which may be amended from time to time upon the mutual agreement of Laboratory and Sponsor.  If the amendment requires additional work on the part of the Laboratory, Laboratory will not conduct the additional work unless approved in writing in advance by Sponsor and if such approval is obtained, Laboratory will be paid an amount mutually agreed to by the parties.  Laboratory agrees not to intentionally change or deviate from the Protocol without Sponsor’s prior approval.  Laboratory may not make material deviations from the Protocol without the prior written approval of Sponsor.  Deviations from the Protocol that are not material may be made in an emergency without Sponsor’s approval, provided that Laboratory shall use commercially reasonable efforts to obtain Sponsor’s verbal approval, which shall be subsequently confirmed by Sponsor in writing.

 

2.3.  After the Study has been completed, Laboratory may be requested by Sponsor to provide additional consultation services concerning the Study performed by Laboratory.  Upon such a request by Sponsor, Laboratory will provide the requested services and will be paid an amount mutually agreed to by the parties.  These consultation services will be subject to the provisions on Confidentiality and Ownership set forth in Paragraphs 8 and 13, respectively.

 

3.  Study Material:  (a)  Sponsor will identify each compound, material or other substance (“Test Material”) that is to become the subject of a Study.  Sponsor will provide Laboratory with the Test Material with which to perform the Study, as well as such know-how, information and data (“Sponsor Know-How”) as Sponsor deems necessary to enable Laboratory to conduct each Study.  In addition, Sponsor shall provide Laboratory with information to apprise Laboratory of the stability of the Test Material, proper storage and safe handling requirements, including a Material Safety Data Sheet (MSDS) or equivalent documentation (“Safety Information”).  Laboratory will supply a blank MSDS to Sponsor, if necessary.

 

(b)           Subject to the provisions of this Agreement, Sponsor hereby grants to Laboratory a non-exclusive, non-transferable, royalty-free, limited license during the term of this Agreement to use the Test Materials, the Sponsor Know-How, the Safety Information and the intellectual property rights embodied in the foregoing (“Sponsor Property”) for the sole purpose of enabling Laboratory to perform the Studies (the “Permitted Purpose”).

 

(c)           Laboratory shall not use either the Sponsor Know-How or the Test Materials, nor shall it permit the same to be used, in any manner or for any purpose (including, without limitation, analysis of the Test Materials) other than for the Permitted Purpose.  Upon termination of this Agreement, Laboratory agrees promptly to return to Sponsor the Sponsor Property, including any and all unused quantity of the Test Materials.

 

4.  Personnel.  Laboratory shall use its best efforts to dedicate the same key personnel to perform each Study (each a “Study Member”) during the term of such Study.  The key Study Members will be identified in the Protocol or Scope of Work, to be approved by Sponsor prior to study initiation.  At any time during the term of this Agreement, Sponsor shall have the right to request a new Study Member be designated by Laboratory if Sponsor believes that a Study Member is not performing in a reasonably acceptable manner.  Any Study Member that no longer performs research activities hereunder for any reason shall be replaced by Laboratory

 

2

 

with an individual that is reasonably acceptable to Sponsor and that possesses the skills, knowledge and capabilities to perform the activities required hereunder.  Laboratory represents that none of its employees who are to participate in a Study have been debarred and none of such employees are under consideration to be debarred by the Food and Drug Administration from working in or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992, as amended.

 

5.  Inspections.  Upon reasonable advance notice, Laboratory will permit Sponsor and/or its designated representatives, during normal business hours and at mutually agreeable times, to visit the Laboratory facilities where the Study is taking place to monitor Laboratory’s performance of the Study and to examine and make copies of Laboratory records relating to a Study to verify compliance by Laboratory with the terms of this Agreement.  Any such examination and copying shall be paid for by Sponsor and shall be scheduled and conducted so as to reasonably minimize the disruption of Laboratory’s research operations.

 

6.  Records and Reports.

 

6.1.  Laboratory will keep and maintain complete and accurate records of the data generated in the course of each Study and the status and progress of the Study as required by the Protocol and/or Scope of Work and/or applicable regulations, in any event, with sufficient detail for use in reports to regulatory agencies.

 

6.2.  Laboratory will furnish a report or data containing information specified in the Protocol and/or Scope of Work according to the approved time lines identified in the Protocol and/or Scope of Work.  All reports will be prepared in the standard format of the Laboratory unless otherwise specified in the Protocol and/or Scope of Work, and shall include, without limitation, the procedures used and results obtained, a description of any inventions or other intellectual property rights Laboratory believes may have been discovered or created for such Study, and any other information that Sponsor reasonably requests.  Notwithstanding the foregoing, Laboratory will inform Sponsor as soon as reasonably practicable of any inventions or other intellectual property rights Laboratory believes may have been discovered or created during the performance of the Study.

 

6.3.  All Study reports and any supporting documentation originating with Laboratory, whether written or physical (e.g., laboratory notebooks, original data, tissues, slides, photographs, etc.) are the Sponsor’s property and shall be the confidential information of Sponsor.  At Sponsor’s cost and expense, if Sponsor requests Sponsor’s property be held by Laboratory, Laboratory shall store Sponsor’s property in the manner and at a cost as agreed upon in the Supporting Documents and in accordance with Laboratory’s archiving policy attached hereto as Exhibit B.  Upon reasonable advance notice, Sponsor’s representatives shall have reasonable access to such material, and shall have the right to obtain certified, legible photocopies of the raw data and supporting documentation, at Sponsor’s expense.

 

3

 

7.  Compensation.

 

7.1.  Sponsor will pay Laboratory as set forth in the Supporting Documents (“Study Price”).  All invoices are due and payable within thirty (30) days of receipt.  Each invoice shall include a description of the services performed and the materials purchased or will reference a study landmark identified in a payment schedule defined in the Supporting Documents.  Any necessary and appropriate changes in the costs of a Study as revised by amendment to the Supporting Documents will be requested subject to written approval by authorized representatives of Laboratory and Sponsor.  All amounts not paid when due shall bear interest from the applicable due date until paid, at the lesser of one and one half percent (1.5%) per annum above the prime rate announced from time to time by Fleet Bank or its successor or the highest lawful rate of interest permitted at the time in Massachusetts.  In addition, Laboratory may elect to withhold required reports or other deliverables if the Sponsor does not make required payments within thirty (30) days.

 

8.  Confidentiality.  The parties anticipate that they will exchange proprietary and confidential information during the term of this Agreement.  The parties will identify, in writing, such information as confidential and/or proprietary.  Each party will maintain such information in confidence and will employ reasonable and appropriate procedures to prevent its unauthorized publication or disclosure.  Neither party shall use the other party’s proprietary or confidential information for any purpose other than in performance of this Agreement.  The obligations of confidentiality set forth in this paragraph will survive termination or expiration of this Agreement for a period of 5 years.

 

The confidentiality provisions of this paragraph shall not apply to any part of such information, which:

 

a)                                      is known to the receiving party at the time it was obtained from the disclosing party;

 

b)                                     is acquired by receiving party from a third party and such third party did not obtain such information directly or indirectly from the disclosing party under obligation not to disclose;

 

c)                                      is or becomes published or otherwise in the public domain other than by violation of this Agreement by the receiving party;

 

d)                                     is independently developed by the receiving party without reference to or reliance upon the information provided by the disclosing party; or

 

(e)                                  is required to be disclosed by the receiving party to comply with applicable laws or governmental regulations; provided that the receiving party provides prior written notice of such disclosure to the disclosing party and takes reasonable and lawful actions to avoid and/or minimize the extent of such disclosure.

 

4

 

9.  Use of Names.

 

Neither party will use the other party’s name or the name of any employee of the other party in any advertising, packaging, promotional material, or any other publicity relating to this Agreement, without the prior written approval of the other party.

 

10.  Warranties.

 

10.1.  Sponsor warrants that it owns or licenses all rights, title and interest in the Test Materials furnished by Sponsor to Laboratory hereunder and the intellectual property related thereto, and that Laboratory’s use of any and all such material in connection with the Study does not infringe any third party rights.

 

10.2.  Laboratory warrants that the services provided to Sponsor under this Agreement shall conform to the Protocol and/or Scope of Work specifications and the current material applicable standards, regulations and procedures of the appropriate regulatory agency(ies).

 

10.3.  THE WARRANTY BY LABORATORY SET FORTH ABOVE IS IN LIEU OF ANY AND ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR FOR NON-INFRINGEMENT OF A PATENT, TRADEMARK OR OTHER INTELLECTUAL PROPERTY RIGHT.

 

11.  Limitation of Liability.

 

11.1.  Except for infringement of the other party’s intellectual property rights or breach of confidentiality obligations hereunder neither party will be liable for penalties or liquidated damages or for special, indirect, consequential or incidental damages of any type or kind (including, without limitation, lost profits) regardless of whether any such losses or damages are characterized as arising from breach of contract, breach of warranty, tort, strict liability or otherwise, even if such party is advised of the possibility of such losses or damages, or if such losses or damages are foreseeable.

 

11.2.  Laboratory’s liability under this Agreement, regardless of the form of action, shall not exceed the lesser of (i) the total Study Price paid for services provided under the Letter of Payment Authorization under which such liability arises or (ii) One Hundred Thousand Dollars ($100,000.00).

 

11.3.  In the event that the Laboratory commits a breach of the warranty set forth in Section 10.2 above, Laboratory’s sole liability, and Sponsor’s sole remedy shall be for Laboratory to rerun the affected work or portion of the research affected by the breach as promptly as possible at Laboratory’s cost and expense.

 

5

 

12.  Indemnities

 

12.1.  Subject to the limitation of liability contained in Section 11.2 above, Laboratory will defend, indemnify, save and hold Sponsor and its parent, subsidiaries and affiliates and their respective directors, officers, employees and agents (together, the “Sponsor Indemnitees”) harmless from and against any third party claims, demands, suits, actions, causes of action, losses, damages, fines and liabilities, including reasonable attorneys’ fees (“Claims”) arising out of or in connection with Laboratory’s negligence or willful misconduct in performance of the Study.

 

12.2.  Sponsor will defend, indemnify, save and hold Laboratory and its parent, subsidiaries and affiliates and their respective directors, officers, employees and agents (together, the “Laboratory Indemnitees”) harmless from and against any Claims arising out of or in connection with (a) the manufacture, distribution, use, sales or other disposition by Sponsor, or any distributor, customer, sublicensee or representative of Sponsor, of any of Sponsor’s product or process and/or any other substances which are produced, purified, tested or vialed by Laboratory, or (b) Sponsor’s negligence or willful misconduct in connection with this Agreement and.

 

12.3  In addition, Sponsor agrees to indemnify, release, defend and hold harmless Laboratory Indemnitees against any and all liability, loss, damage, cost or expense (including reasonable attorneys’ fees and expenses and costs of investigation) which may be incurred, suffered or required to be paid as the result of any damage suffered or alleged to be suffered, including, without limitation, death or personal injury and any direct, consequential, special and punitive damages, as the result of any contact by Sponsor or its employees with the Laboratory’s animals, tissues or specimens during visits to the Laboratory or after delivery of any samples/specimens to Sponsor.

 

13.  Ownership.

 

(a)           For purposes of this Agreement, “Study Results” shall mean all data, information, test results, laboratory notes, techniques, know-how and any other scientific and technical information that is obtained in the performance of the Studies by any Study Member.  All Study Results obtained in the testing work performed hereunder shall be the property of the Sponsor.  Subject to the provisions of this Agreement, Sponsor hereby grants to Laboratory a non-exclusive, non-transferable, royalty-free, limited license to the Study Results for its internal research purposes only.

 

(b)           No express or implied license or permission is granted hereunder to Laboratory to use the Sponsor Property, except in pursuit of the Permitted Purpose as expressly stated herein.  All of Sponsor’s rights in and to the Sponsor Property shall remain the exclusive property of Sponsor.

 

(c)           For purposes of this Agreement, “Invention” shall mean any invention, or discovery arising out of the Study that is developed, conceived, or conceived and reduced to practice during the term of this Agreement.  All Inventions will be promptly disclosed to Sponsor.  Without the prior written consent of Sponsor, Laboratory shall not at any time file,

 

6

 

cause to be filed or consent to the filing of any patent application with respect to or claiming any Sponsor Property or Invention as described in clauses (1) and (3) below.  Any Invention made which names as an inventor at least one Study Member who is an employee or affiliate of Laboratory shall be owned as follows:

 

(1)           Any Invention which involves the use of, composition of, or improvement to Sponsor Property, or a derivative or analog thereof shall be owned by the Sponsor (the “Sponsor Project Intellectual Property) and Laboratory hereby assigns to Sponsor all of Laboratory’s right, title and interest in and to any and all Sponsor Project Intellectual Property and agrees to execute such instruments of transfer, assignment, conveyance or confirmation and such other documents as Sponsor may request to evidence confirm or perfect the assignment of all Laboratory’s right, title and interest in and to any Sponsor Project Intellectual Property; and

 

(2)           Any Invention which covers a scientific process, technique, procedure, medium, device or other process that is not derived from Sponsor Property and of which an employee or agent of Sponsor is not a co-inventor shall be owned by Laboratory (the “Laboratory Project Intellectual Property); and

 

(3)           Any Invention which covers a scientific process, technique, procedure, medium, device or other process that is not derived from Sponsor Property and of which at least one employee or agent of Sponsor is a co-inventor shall be jointly owned by Laboratory and Sponsor (the “Joint Project Intellectual Property”).

 

(d)           For any Laboratory Project Intellectual Property and any Joint Project Intellectual Property, Sponsor shall be given the first option to obtain a worldwide, exclusive and perpetual, subject to customary termination provisions, license to research, develop, make, have made, sell, have sold and use (including for commercial purposes) such property.  Upon Laboratory’s receipt of such written notice, the parties shall commence exclusive, good faith negotiations for a twelve (12) month period for the purpose of executing a fair and equitable definitive license agreement.  If after 12 months, Laboratory and Sponsor are unable to reach an agreement, Laboratory shall be free to license Laboratory Project Intellectual Property or its rights in any Joint Invention to any other party.

 

14.  Insurance.  Laboratory shall carry insurance sufficient to cover its interest or liabilities hereunder including, but not limited to worker’s compensation and comprehensive general liability.

 

15.  Force Majeure.  Except with respect to the payment of monies due hereunder, neither party shall be considered in default of the performance of any obligation hereunder to the extent that the performance of such obligation is prevented or delayed by fire, flood, earthquake, explosion, strike, acts of terrorism, war, insurrection, embargo, government requirement, civil or military authority, act of God, or any other event, occurrence or condition which is not caused, in whole or in part, by that party, and which is beyond the reasonable control of that party.

 

7

 

16.  Term and Termination.

 

16.1.  This Agreement will commence on the Effective Date and will continue for five (5) years from the Effective Date or until terminated by the parties as set forth below.

 

16.2  Sponsor shall have the right to terminate an on-going Study at any time without cause upon fifteen (15) business days prior written notice to Laboratory.  In the event a Study is terminated without cause, Laboratory shall be paid for all services rendered prior to receipt of notification of termination but which have not yet been invoiced, together with any additional expenses actually incurred in connection with commitments existing at the time notice of termination is received which cannot be canceled.

 

16.3  Either party may terminate this Agreement upon sixty (60) days notice to the other party, provided that Laboratory completes all Studies in progress, and Sponsor makes all payments due to Laboratory thorough the termination date as set forth in Section 16.2.

 

16.4  Either party may terminate this agreement at any time upon thirty (30) days prior written notice to the other party, for material breach of this Agreement by the other party where such breach is not remedied to the non-breaching party’s reasonable satisfaction within the thirty (30) day notice period.

 

16.5  Upon termination, neither party will have any further obligations under this Agreement, except that (i) the liabilities accrued through the date of termination and (ii) the obligations which by their terms survive termination, including the applicable confidentiality, record keeping, regulatory compliance, intellectual property and indemnification provisions of this Agreement, shall survive termination.

 

17.  Employee Solicitation.  Laboratory and Sponsor agree that, during the term of a Study and for a period of one hundred eighty (180) days thereafter, Sponsor will not knowingly hire, and will not knowingly engage as an independent contractor, any person who has been directly involved in rendering or receiving services on the Study as an employee of Sponsor, without written consent of Laboratory.

 

18.  Dispute Resolution.  The parties shall attempt, in good faith, to resolve through negotiations any controversy, claim, or dispute arising out of this Agreement.  In the event that negotiations are not successful, the controversy, claim, or dispute shall be submitted to third party mediation upon terms reasonably acceptable to the parties.  If such claim, controversy or dispute is not resolved through mediation, upon written demand of either party, the claim, controversy or dispute shall be submitted to arbitration before three (3) arbitrators.  Such arbitration shall take place in Boston, Massachusetts, and shall proceed in accordance with the Commercial Arbitration Rules of the American Arbitration Association and the laws of the Commonwealth of Massachusetts.  Within seven (7) calendar days after either party makes a written demand on the other for arbitration, each party shall select one (1) arbitrator.  A third arbitrator shall be chosen by the arbitrators selected by the parties within thirty (30) days of the demand for arbitration, and

 

8

 

shall act as chairman.  In the event that any arbitrator is not appointed in the prescribed time period, either party may apply to the American Arbitration Association for the appointment of such arbitrator.  A record and transcript of the proceedings shall be maintained.  Any award shall be made in writing and in reasonable detail, setting forth the findings of fact and conclusion of law supporting the award.  The determination of a majority of the panel of arbitrators shall be the decision of the arbitrators, which shall be binding regardless of whether one of the parties fails or refuses to participate in the arbitration.  The decision shall be enforceable by a court of law, provided that the decision is supported by substantial fact and is without material error of law.  All costs of such arbitration, except expert fees and attorneys’ fees, shall be shared equally by the parties.

 

19.  Miscellaneous.

 

19.1  Notices.  All notices from one party to the other will be in writing and will be given by addressing the same, if to Laboratory, to the applicable address set forth on Exhibit A and, if to Sponsor, to the address set forth below, or at such other address as either may specify in writing to the other.  Notices shall be sent by overnight courier, certified mail, return receipt requested, or by other means of delivery requiring an acknowledged receipt.  All notices shall be effective upon receipt.

 

Sponsor Address:

 

Nuvios, Inc.

197M Boston Post Road West

Marlborough, MA  01752

Attn:  Bart Henderson

 

19.2  Independent Contractor.  The business relationship of the Laboratory to the Sponsor is that of an independent contractor and not of a partner, joint venturer, employer, employee or any other kind of relationship.  Laboratory will be solely responsible for expenses and liabilities associated with the employment of its employees.

 

19.3  Assignment.  This Agreement, and the rights and obligations hereunder, may not be assigned or transferred by either party without the prior written consent of the other party, except that either party may assign this Agreement in connection with the merger, consolidation or sale of substantially all assets related to the Study.

 

19.4  Entire Agreement.  This Agreement, together with the Supporting Documents, constitutes the entire agreement of the parties, superseding any and all previous agreements and understandings, whether oral or written, as to the same subject matter.  No modification or waiver of the provisions of this Agreement shall be valid or binding on either party unless in writing and signed by both parties.  No waiver of any term, right or condition under this Agreement on any one occasion shall be construed or deemed to be a waiver or continuing waiver of any such term, right or condition on any subsequent occasion or a waiver of any other term, right or condition hereunder.

 

9

 

19.5  Severability.  In the event that any one or more of the provisions contained in this Agreement will, for any reason, be held to be invalid, illegal or unenforceable in any respect, that invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect.  If any provision of this Agreement is held to be excessively broad, it will be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.

 

19.6  Applicable Law.  This Agreement will in all events and for all purposes be governed by, and construed in accordance with, the laws of The Commonwealth of Massachusetts without regard to any choice of law principle that would dictate the application of the law of another jurisdiction.

 

IN WITNESS WHEREOF, duly authorized representatives of the parties have signed this Agreement as of the Effective Date.

 

	
Charles River Laboratories, Inc.
    	
 
    	
Nuvios, Inc.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Mark D. Seefeld
    	
 
    	
By:
    	
/s/ Bart Henderson
    
	
 
    	
duly authorized
    	
 
    	
 
    	
duly authorized
    
	
Print Name:
    	
Mark D. Seefeld, Ph.D., DABT
    	
 
    	
Print Name:
    	
Bart Henderson
    
	
Title: General Manager, General Toxicology
    	
 
    	
Title: Chief Bus. Officer
    
	
Date: April 16, 2004
    	
 
    	
Date: 4/29/04
    
							

 

10

 

Exhibit A

 

Work may be conducted at any of the following Charles River Laboratories divisions:

 

	
Argus Division

905 Sheehy Drive, Building A

Horsham, PA 19044
    	
Navigators Regulatory and Scientific Consulting

587 Dunn Circle

Sparks, NV 89431
    
	
Arkansas Division

100 East Boone Street

Redfield, AR 72132
    	
Ohio Division

640 N. Elizabeth Street

Spencerville, OH 45887
    
	
Biopharmaceutical Services

358 Technology Drive

Malvern, PA 19355
    	
Pathology Associates Division

15 Worman’s Mill Court, Suite 1

Frederick, MD 21701
    
	
Interventional Surgical Services

Southbridge

236 Blackmer Road

Southbridge, MA 01550-3114
    	
Sierra Division

587 Dunn Circle

Sparks, NV 89431
    
	
Interventional Surgical Services

River Valley Farms

803 Prospect Avenue

Osceola, WI 54020
    	
Worcester Division

57 Union Street

Worcester, MA 01608
    
	
Milestone Biomedical Associates

15 Worman’s Mill Court, Suite 1

Frederick, MD 21701
    	
 
    

 

	
A COPY OF ALL NOTICES   SHALL BE SENT TO:
    

 

	
Charles River Laboratories, Inc.
   251 Ballardvale Street
   Wilmington, MA 01887
   Attn: General Counsel
    	
Charles River Laboratories, Inc.
   587 Dunn Circle
   Sparks, NV 89431
   Attn: Contracts Administrator
    

 

11

 

LSCA

Sponsor Name

 

Exhibit B

 

Archive Terms and Conditions

 

1.                                       All Study reports and any supporting documentation originating with Laboratory, whether written or physical (e.g., laboratory notebooks, original data, tissues, slides, photographs, etc.) are the Sponsor’s property (“Materials”).  All Materials shall remain the property of Sponsor.  Laboratory agrees to maintain industry standards in connection with the storage of the Materials and adhere to all government laws and regulations applicable to the storage of the Materials.

 

2.                                       Laboratory shall store the Materials at its current storage rates.  Laboratory may increase the rates on an annual basis upon notice to Sponsor.  If the Materials require additional and/or special storage requirements, additional charges for storage shall be assessed and invoiced to Sponsor.  Invoices shall be issued annually in advance and are due and payable upon receipt and Sponsor agrees to pay all invoices submitted.  All amounts not paid when due shall bear interest from the applicable due date until paid, at the lesser of four percent (4%) per annum above the base rate announced from time to time by Fleet Bank or its successor or the highest lawful rate of interest permitted at the time in Massachusetts.

 

3.                                       Laboratory’s liability for archival services under this Agreement, regardless of the form of action, shall not exceed the lesser of the fee paid for one year’s storage of the Materials or one thousand dollars ($1,000.00).  In no event shall Laboratory be liable for penalties or liquidated damages or for special, indirect, consequential or incidental damages of any type or kind (including, without limitation, lost profits).

 

4.                                       The term of this Agreement for archival services shall be one year and shall automatically renew unless terminated by either Laboratory or Sponsor.  Upon the termination of this Agreement, Laboratory shall contact Sponsor to determine disposition of the Materials as follows: (a) extended storage of the Materials or (b) return of the Materials to Sponsor at Sponsor’s expense.  If Sponsor requests Laboratory to continue storage of the Materials, and Laboratory agrees, the cost for storage of the Materials shall continue to be invoiced to Sponsor at Laboratory’s then current rates.  If Sponsor fails to give said instructions, Laboratory shall so notify Sponsor, and if said instructions are still not forthcoming within thirty (30) days of said notification, then Laboratory shall have the option of continuing storage of the Materials, which will be deemed to have been authorized for an additional period of not less than one (1) year or Laboratory may return the Materials to Sponsor at Sponsor’s expense.  Sponsor shall be liable for storage charges until the Materials are returned to Sponsor.  While the Materials are in transit to Sponsor, all risk of loss or exposure to the Materials shall be borne by Sponsor.

 

5.                                       Sponsor will defend, indemnify, save and hold Laboratory and its parent, subsidiaries and affiliates and their respective directors, officers, employees and agents harmless from and

 

12

 

against any claims arising out of or in connection with (a) the presence of or exposure to the Materials or (b) Sponsor’s negligence or willful misconduct in connection with this Agreement and will pay any costs and damages which may be assessed against them.

 

6.                                       Laboratory will not release the Materials to any third party, without Sponsor’s written permission unless such disclosure is compelled by valid subpoena or any applicable law.  If such disclosure is requested, Laboratory shall use its commercially reasonable efforts to provide Sponsor with written notice prior to such release.

 

13

 

Supporting Documents

 

 

[CHARLES RIVER LETTERHEAD]

 

LETTER OF PAYMENT AUTHORIZATION

 

March 31, 2004

 

Ben Lane
 NuVios
 197M Boston Post Road - West
 #337
 Marlborough, MA 01752
 Telephone:
 Fax: 847-680-5023
 ben.c.lane@sbcglobal.net

 

Re: SSU00002:P-03 Pharmacokinetics Of Two Test Articles Following Subcutaneous Administration To Ovariectomized Swiss Webster Mice
 Estimated Study Start: 3/29/04

 

This communication is to serve as a Letter of Payment Authorization (LOPA) for the above referenced study, which will be performed at Charles River Discovery Development Services (CR-DDS-Worcester Division) as set forth below.  CR-DDS-Worcester Division shall perform these services in accordance with the existing Service Agreement executed between CR-DDS and NuVios.  Once fully executed, this LOPA shall be incorporated into and made part of the existing Service Agreement.

 

The payment schedule and price of this study are as follows:

 

·                  (50%) $11,160 upon Advance Payments Completed.

 

·                  (35%) $7,812 upon In-Life Complete Completed.

 

·                  (15%) $3,348 upon Data Summary Report Completed.

 

Total Price of Study: $22,320.00

 

In the event the study design is altered, or the study is postponed or cancelled, payments will be amended as follows:

 

The price impact (if any) of the protocol amendment/change order will be submitted in writing.  If study prices increase, the difference will be invoiced and payable upon acceptance by the Sponsor.  If study prices decrease, the Sponsor will be credited for the difference.

 

Upon receipt of a verbal and/or written request Charles River Discovery and Development Services will order or assign animals and allocate resources for your study.  If the study is dosed on or before the agreed upon date no cancellation fees are necessary.  If the study is cancelled or rescheduled more than 7 days prior to dosing there will be no cancellation charges.  Any cancellation or delay less than 7 business days by Sponsor, through no fault of CR-DDS-Worcester Division, prior to dosing will result in a charge of 25% of the total study cost.  If the Sponsor requests delay of a study start, CR-DDS-Worcester Division will make every effort to accommodate the requested change.

 

CRL-DDS-Worcester Division will store residual study samples, test articles and formulations (“samples”) free of charge for up to 6 months following issuance of the draft report/data summary.  After this 6-month period CRL-DDS-Worcester Division will return, dispose or archive samples at the rates attached.  Please authorize one of the three options listed in the attachment.  In the absence of this authorization CRL-DDS-Worcester Division will assume that samples will be shipped back to NuVios.

 

 

As acceptance of this agreement, please sign this Letter of Payment Authorization and return to Mr. Leigh Peirce at the letterhead address (or fax to Leigh Peirce at (508) 890-0192).

 

 

	
 
    	
 
    	
 
    
	
/s/   Bart Henderson
    	
 
    	
/s/   Leigh Pierce
    
	
Sponsor   Representative
    	
 
    	
Leigh   Peirce
    
	
 
    	
 
    	
 
    
	
Bart   Henderson, CBO
    	
 
    	
3/31/04
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
4/2/04
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

2

 

Attachment A

 

Sample Disposition

 

Charles River will store residual study samples, test articles and formulations (“samples”) free of charge for months following issuance of the draft report/data submission.  After this 6-month period Charles River will r dispose or archive samples at the following rates.  Please authorize one of the following three options:

 

Study Number: SSU00002

 

	
o
    	
Dispose:   Continued sample storage is unnecessary. Please dispose of samples properly.
    
	
 
    	
 
    
	
x
    	
Ship:   Please return samples to the address provided below at a fee of $350/study.
    
	
 
    	
 
    
	
 
    	
Name
    	
Gary   Hattersley, Ph.D.
    
	
 
    	
 
    	
 
    
	
 
    	
Address
    	
To   be provided
    
	
 
    	
 
    	
 
    
	
 
    	
City,   State, Zip
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Phone
    	
617-551-4703
    
	
 
    	
 
    	
 
    
	
o
    	
Archive:   Please continue storage at CR-DDS-Worcester Division until notified. I   understand the following fees will apply and will be invoiced on a quarterly   basis.
    
	
 
    	
 
    	
 
    
	
 
    	
·
    	
$500 initial archive setup
    
	
 
    	
 
    	
 
    
	
 
    	
·
    	
$100/ bin (~1.5 ft3)
    
					

 

 

	
Authorized   Signature
    	
/s/   Ben Lane
    	
 
    	
Date
    	
April   2, 2004
    

 

3

 

[CHARLES RIVER LETTERHEAD]

 

Letter of Payment Authorization – Revision 2

 

October 2 2009

 

Gary Hattersley, Ph.D.
 VP, Biology
 RADIUS
 300 Technology Square, 5th Floor
 Cambridge, MA 02139
 Telephone: 617.551.4703
 Email: ghattersley@radiuspharm.com

 

Re:                             Charles River Study Number SSU00067

 

Dear Dr. Hattersley,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval.  For your convenience, we have provided the following summary of the titles and prices of the studies and/or study components under discussion.  If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below.  (If all studies and/or components are not being authorized at this time, please initial the studies and components you wish to authorize and sign and date the authorization line below.  If all studies are being authorized at this time, merely sign and date the authorization line below, leaving the studies and component boxes empty).  These prices are valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initials
    	
 
    	
Study   Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
SSU00066

A   Dermal Sensitization Study in Guinea Pigs (Standard Buehler)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Reference Scope of work dated: 02-Oct-2009)

Original Study Price:

Less [*] % MPM discount:

Total Study Price:
    	
 
    	
 

 

-
    	
 

[*]

[*]

$ 26,900
    
	
 
    	
 
    	
SSU00067

A   14-Day Local Tolerance Study in Rabbits with a 7-Day Recovery Period
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Reference Scope of work dated: 02-Oct-2009)

Original Study Price:

Less [*] % MPM discount:

Total Study Price:
    	
 
    	
 

 

-
    	
 

[*]

[*]

$ 50,000
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study.  Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study Number SSU00066

 

The payment schedule and price of this study are as follows:

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

·                  25%        Due upon Authorization*

 

·                  50%        Due upon Completion of In-life

 

·                  25%        Due upon Submission of Draft Report

 

Payment Schedule for Study Number SSU00067

 

The payment schedule and price of this study are as follows:

 

·                  25%        Due upon Authorization*

 

·                  50%        Due upon Completion of In-life

 

·                  25%        Due upon Submission of Draft Report

 

*Invoice(s) will be sent no more than 60 days prior to scheduled study start.

 

In the event Charles River does not receive comments pertaining to the draft report within 60 days after submission to the Sponsor, the final invoice will be due and payable.

 

Based upon the current scope of work, we would expect to initiate these studies the week of October 26, 2009.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every reasonable effort to accommodate requested schedule changes.  However, as significant costs are incurred related to study initiation, cancellation/delay fees will apply in proportion to the number of days’ notice given (please see attached Cancellation and Delay Policy).  Cancellation/delay fees may be assessed separately for each postponement prior to the study being cancelled or initiated.  The Cancellation and Delay Policy becomes effective upon execution of this Letter of Authorization.

 

Charles River shall perform these services in accordance with the Service Agreement (the “Agreement”) executed between Charles River and RADIUS.  Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior.  to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement

 

REPEAT OF SAMPLE ANALYSIS.  If applicable, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.

 

2

 

However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

In the event of a conflict between the terms set forth in this letter and the Master Service Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

 

	
/s/   Tracee D. Lyons
    	
 
    	
/s/   B.N. Harvey
    
	
Tracee   D. Lyons
    	
 
    	
Authorized   Sponsor Representative
    
	
Client   Services Representive II
    	
 
    	
 
    
	
Charles   River
    	
 
    	
B.N.   Harvey, CFO
    
	
Preclinical   Services
    	
 
    	
Print   (Name and Title)
    
	
Phone:   419.647.4196
    	
 
    	
 
    
	
Fax:   419.647.6560
    	
 
    	
Oct,   16, 2008
    
	
E-Mail: Tracee.Lyons@crl.com
    	
 
    	
Date
    

 

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to Tracee Lyons at 419.647.6560.

 

3

 

Date Created: October 2, 2009

Sponsor: Radius

 

	
Title:
    	
 
    	
A   Dermal Sensitization Study in Guinea Pigs (Standard Buehler)
    
	
 
    	
 
    	
 
    
	
Project   Number:
    	
 
    	
SSU00066
    
	
 
    	
 
    	
 
    
	
Charles   River Facility:
    	
 
    	
Ohio
    
	
 
    	
 
    	
 
    
	
Compliance:
    	
 
    	
GLP
    
	
 
    	
 
    	
 
    
	
Species/Strain:
    	
 
    	
Guinea   Pigs
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Preparation:
    	
 
    	
Standard   dose formulation prepared daily; no samples obtained
    
	
 
    	
 
    	
 
    
	
Dosing   Regimen:
    	
 
    	
Phase   A: Three inductions/week to test animals on single test site (nine total   inductions)

Phase   B: Test animals challenged on new test site and challenge control animals   dosed approximately 2 weeks after Induction 9

Phase   C: Test animals rechallenged on a test site with naive rechallenge control   animals dosed (if needed).
    
	
 
    	
 
    	
 
    
	
Route   of Administration:
    	
 
    	
Dermal   (skin painting) dose administration — 6 hour exposure
    
	
 
    	
 
    	
 
    
	
Test System:
    	
 
    	
Group
    	
 
    	
Number of Animals
    
	
 
    	
Test/Placebo
    	
 
    	
10/10
    
	
 
    	
Challenge Control
    	
 
    	
10
    
	
 
    	
Rechallenge
    	
 
    	
10
    
	
 
    	
DNCB Positive Control Test
    	
 
    	
10
    
	
 
    	
Positive Control
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spares
    	
 
    	
5   animals
    
	
 
    	
 
    	
 
    
	
Total   Population
    	
 
    	
69   animals
    
	
 
    	
 
    	
 
    
	
Age
    	
 
    	
Approximately   7 weeks at receipt
    
	
 
    	
 
    	
 
    
	
Source
    	
 
    	
Charles   River Laboratories
    
	
 
    	
 
    	
 
    
	
Pretreatment   Period
    	
 
    	
At   least 5 days
    
	
 
    	
 
    	
 
    
	
Mortality/Cageside   Observations:
    	
 
    	
Mortality/viability   observations will be conducted on twice daily on all animals. Positive   clinical observations only. Dermal scoring at 24 and 48 hours.
    
	
 
    	
 
    	
 
    
	
Body   Weight/Food Consumption:
    	
 
    	
Body   weights obtained at 3 intervals.
    
	
 
    	
 
    	
 
    
	
Terminal   Procedures:
    	
 
    	
Animals   terminated without necropsy
    
	
 
    	
 
    	
 
    
	
Reporting:
    	
 
    	
Audited   draft report provided in approximately 4 weeks.
    
	
 
    	
 
    	
 
    
	
Archiving:
    	
 
    	
Archiving   materials will be maintained through final report issuance.
    

 

4

 

Date Created: October 2, 2009

Sponsor: Radius

 

	
Title:
    	
 
    	
A   14-Day Local Tolerance Study in Rabbits with a 7-Day Recovery Period
    
	
 
    	
 
    	
 
    
	
Study   Number:
    	
 
    	
SSU00067
    
	
 
    	
 
    	
 
    
	
Charles   River Facility:
    	
 
    	
Ohio
    
	
 
    	
 
    	
 
    
	
Compliance:
    	
 
    	
GLP
    
	
 
    	
 
    	
 
    
	
Species/Strain:
    	
 
    	
New   Zealand White Rabbits
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Preparation (assumes basic dose   preparation):
    	
 
    	
Test   material to be dispensed as received; no samples obtained.
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Analysis (assumes standard HPLC-UV method):
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    
	
Dosing   Regimen:
    	
 
    	
A   single daily dose for 14-days followed by a 7-Day recovery period.
    
	
 
    	
 
    	
 
    
	
Route   of Administration:
    	
 
    	
Transdermal   patch or subcutaneous dose administration.
    
	
 
    	
 
    	
 
    
	
Test System:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Number of Animals
    
	
 
    	
Group:
    	
 
    	
Dose
    	
 
    	
Males
    	
 
    	
Females
    
	
 
    	
1
    	
 
    	
Patch - Control
    	
 
    	
3 (2)
    	
 
    	
3 (2)
    
	
 
    	
2
    	
 
    	
Patch - Low
    	
 
    	
3
    	
 
    	
3
    
	
 
    	
3
    	
 
    	
Patch - High
    	
 
    	
3 (2)
    	
 
    	
3 (2)
    
	
 
    	
 
    	
( ) animals will be held for 7-Day recovery
    
	
 
    	
 
    	
 
    
	
Spares:
    	
 
    	
4   animals
    
	
 
    	
 
    	
 
    
	
Total   Population:
    	
 
    	
30   animals
    
	
 
    	
 
    	
 
    
	
Age:
    	
 
    	
Approximately   2.5 – 3.5 kg at receipt
    
	
 
    	
 
    	
 
    
	
Source:
    	
 
    	
Charles   River
    
	
 
    	
 
    	
 
    
	
Pretreatment   Period:
    	
 
    	
Approximately   10 days.
    
	
 
    	
 
    	
 
    
	
Mortality/Cage   side Observations:
    	
 
    	
Mortality:   Twice daily on all animals.

Cage-side   Obs: Daily on all animals.
    
	
 
    	
 
    	
 
    
	
Detailed   Observations:
    	
 
    	
Weekly   and prior to termination on all animals.
    
	
 
    	
 
    	
 
    
	
Body   Weight:
    	
 
    	
Weekly   and prior to termination on all animals.
    
	
 
    	
 
    	
 
    
	
Food   Consumption:
    	
 
    	
Daily   on all animals.
    
	
 
    	
 
    	
 
    
	
Special   Assessments:
    	
 
    	
Draize   dermal scoring twice daily (pre-dose and 1-2 hours post-dose) on all animals.
    
	
 
    	
 
    	
 
    
	
Clinical   Pathology Parameters:
    	
 
    	
Coagulation   (PT and APTT), clinical chemistry and hematology on all animals at pre-test   and prior to designated termination.
    
	
 
    	
 
    	
 
    
	
Toxicokinetics   Sample Collection:
    	
 
    	
Toxicokinetic   samples will be obtained from all animals at 8 timepoints (pre-dose, 5, 15,   30, 60, 120, 180 and 240 minutes post-dose) on Days 1 and 14 (576 samples   total). Samples to be 
    

 

5

 

Date Created: October 2, 2009

Sponsor: Radius

 

	
 
    	
 
    	
shipped   to sponsor designated laboratory.
    
	
 
    	
 
    	
 
    
	
Toxicokinetic   Sample Analysis:
    	
 
    	
At   additional cost.
    
	
 
    	
 
    	
 
    
	
Toxicokinetic   Reporting:
    	
 
    	
At   additional cost.
    
	
 
    	
 
    	
 
    
	
Terminal   Procedures:
    	
 
    	
Full   gross necropsy with organ weights and tissue collection on all animals.
    
	
 
    	
 
    	
 
    
	
Histopathology:
    	
 
    	
Standard   histopathology on treated and untreated skin sites (2, sections) for all animals.   All other tissues will be retained for possible evaluation.
    
	
 
    	
 
    	
 
    
	
Audited   Draft Report:
    	
 
    	
Audited   draft report to be provided in approximately 9 weeks from the time of in-life   completion.
    

 

6

 

Date Created: October 2, 2009

 

	
Title:
    	
 
    	
A   14-Day Local Tolerance Study in Rabbits with a 7-Day Recovery Period
    
	
 
    	
 
    	
 
    
	
Study   Number:
    	
 
    	
SSU00067
    
	
 
    	
 
    	
 
    
	
Archiving:
    	
 
    	
Archiving   materials will be maintained through final report issuance.
    

 

7

 

Date Created: October 2, 2009

Sponsor: Radius

 

TOXICOLOGY: POSTPONEMENT/CANCELLATION POLICY

 

Upon receipt of the signed quote letter or correspondence from the Sponsor confirming formal authorization, Charles River Laboratories Preclinical Services, hereinafter referred to as (“Charles River”) will order or reserve animals and allocate other resources for the specified study.

 

If the study is initiated on the scheduled start date, the most current quoted price is valid (unless advised otherwise by any revised quote letter) and no postponement or cancellation charges are applicable.

 

There will be no charges if the study is rescheduled or cancelled as long as notice is provided to Charles River in advance of the defined period of time prior to the animal arrival date.

 

Should any applicable fees be charged from the animal supplier before the above-mentioned timelines, these would be the responsibility of the Sponsor.

 

If sponsor cancels study after animal arrival and before study start the following charges will apply:

 

In the event of postponement or cancellation of the study by the Sponsor, additional compensation may be requested for items procured specifically for the study (e.g., animal purchases(1), dedicated equipment, perishable or non-reusable supplies) and any non-recoverable expenses incurred by Charles River (e.g., equipment lease payments, subcontractor charges or consultant fees to which Charles is irrevocably committed).

 

In the event the Sponsor terminates an ongoing study (i.e. early termination following dosing initiation), the Sponsor will be responsible for all incurred costs.

 

Exceptions to the above terms may be made on a case-by-case basis at Charles River sole discretion, if the study cancellation or postponement has little or no financial impact on Charles River (e.g. if notice that the study is subsequently cancelled or postponed falls within the defined period of time above pre-study period but no resources have been expended or costs incurred in the preparation for the study, and the animals can be readily used in another study [or exchanged, in the case of postponement]).

 

In the event of a conflict between the terms set forth in this letter and the Master Service Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

(1) In order to secure animals, Charles River is required to purchase the animals upon study authorization.  Therefore, should there be a cancellation thereafter by the Sponsor, the Sponsor will incur the full cost of animals ordered.

 

8

 

[CHARLES RIVER LETTERHEAD]

 

February 19, 2009

 

Radius Health, Inc.
 300 Technology square, Fifth Floor
 Cambridge, MA 02139
 USA

 

LETTER OF AGREEMENT

 

STUDY NO.: 182253

 

STUDY TITLE:    Validation of an HPLC Method for the Determination of BA058 and PTH in Dose Formulations

 

SCOPE OF WORK DATED: To be provided

 

PRICE:  $21,850 US (as per Study Authorization dated February 9, 2009)

 

[*] % MPM discount included

 

PAYMENT TERMS:

 

	
 
    	
50%   - $10,925 US - 1st installment at commencement of laboratory work
    
	
 
    	
50%   - $10,925 US - 2nd installment at completion of laboratory work (excluding   long term stability testing, if applicable)
    

 

PROPOSED COMMENCEMENT OF WORK:  March 2009

 

PROPOSED REPORTING TIME:  Audited draft report:

 

·                  Normally generated with six weeks following the end of study

 

ACCLIMATION PERIOD:  Not applicable

 

RETENTION PERIOD:  One (1) year

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River Montreal during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River Montreal for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River Montreal.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement

 

DELAY IN PRECLINICAL WORK.  In the event that any animals are purchased by Charles River Montreal, as authorized by and on behalf of the Sponsor, for preclinical work to be performed under this Letter of Agreement, the parties hereto agree that the acclimation period (“Acclimation Period”) shall be stipulated herein.  After the completion of the Acclimation Period, should there be any delay in the commencement of the Study that is attributable to the Sponsor, in any way, then the Sponsor agrees to

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

Radius Health, Inc.

Letter of Agreement

Study No. 182253

 

reimburse housing fees to Charles River Montreal for the said delay at rates prevailing at the time of said delay.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River Montreal must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River Montreal shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River Montreal within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River Montreal will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River Montreal will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River Montreal agree that all costs associated with shipping test article to Charles River Montreal shall be the responsibility of the Sponsor.  Charles River Montreal shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s) while in, transit.

 

This Letter of Agreement will be governed by the terms and conditions of the Laboratory Services and Confidentiality Agreement dated March 31st, 2004 as amended between Charles River Laboratories, Inc. and Radius Health, Inc. (formerly known as Nuvios, Inc.).

 

	
Radius   Health, Inc.
    	
 
    	
Charles River Laboratories
   Preclinical Services Montréal Inc.  
    
	
 
    	
 
    	
 
    
	
/s/   B.N. Harvey
    	
 
    	
/s/   Chris Perkin
    
	
B.N.   Harvey
    	
 
    	
Chris   Perkin, D.A.B. T.
   Corporate Senior Vice President &
   President, Canadian & Chinese Preclinical Services
    
	
 
    	
 
    	
 
    
	
Feb.   23, 2009
    	
 
    	
/s/   Paul Bancroft
    
	
Date
    	
 
    	
Paul   Bancroft, CMA
   Vice President Finance
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
February   19, 2009
    
	
 
    	
 
    	
Date
    

 

 

[CHARLES RIVER LETTERHEAD]

 

February 18, 2009

 

Radius Health, Inc.
 300 Technology square, Fifth Floor
 Cambridge, MA 02139

 

LETTER OF AGREEMENT

 

STUDY NO.:  182252

 

	
STUDY   TITLE:
    	
Set-Up   and Pre-Validation of an HPLC Method for the Determination of BA058 and PTH   in Dose Formulations
    

 

SCOPE OF WORK DATED:  November 14, 2008

 

PRICE:  $1,900 US/Day (as per Study Authorization dated February 9, 2009)

 

[*] % MPM discount included

 

PAYMENT TERMS:

 

·                  Monthly billing as per work performed.

 

PROPOSED COMMENCEMENT OF WORK:  February 2009

 

PROPOSED REPORTING TIME:  Not applicable

 

ACCLIMATION PERIOD:  Not applicable

 

RETENTION PERIOD:  One (1) year

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River Montreal during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River Montreal for one (1) year at no charge.  After this one (1’) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River Montreal.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement

 

DELAY IN PRECLINICAL WORK.  In the event that any animals are purchased by Charles River Montreal, as authorized by and on behalf of the Sponsor, for preclinical work to be performed under this Letter of Agreement, the parties hereto agree that the acclimation period (“Acclimation Period”) shall be stipulated herein.  After the completion of the Acclimation Period, should there be any delay in the commencement of the Study that is attributable to the Sponsor, in any way, then the Sponsor agrees to reimburse housing fees to Charles River Montreal for the said delay at rates prevailing at the time of said delay.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

Radius Health, Inc.

Letter of Agreement

Study No. 182252

 

required.  If this arises, Charles River Montreal must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River Montreal shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River Montreal within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River Montreal will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River Montreal will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a % range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River Montreal agree that all costs associated with shipping test article to Charles River Montreal shall be the responsibility of the Sponsor.  Charles River Montreal-shall-not-be-responsible for any-direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s) while in transit.

 

This Letter of Agreement will be governed by the terms and conditions of the Laboratory Services and Confidentiality Agreement dated March 31st, 2004 as amended between Charles River Laboratories, Inc. and Radius Health, Inc. (formerly known as Nuvios, Inc.).

 

	
Radius   Health, Inc.
    	
 
    	
Charles River Laboratories
   Preclinical Services Montréal Inc.
    
	
 
    	
 
    	
 
    
	
/s/   B.N. Harvey
    	
 
    	
/s/ Chris Perkin
    
	
B.N.   Harvey
    	
 
    	
Chris   Perkin, D.A.B. T.
   Corporate Senior Vice President &
   President, Canadian & Chinese Preclinical Services 
    
	
 
    	
 
    	
 
    
	
Feb.   23, 2009
    	
 
    	
/s/ Paul Bancroft
    
	
Date
    	
 
    	
Paul   Bancroft, CMA
   Vice President Finance 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
February 19, 2009
    
	
 
    	
 
    	
Date
    

 

 

[CHARLES RIVER LETTERHEAD]

 

Letter of Payment Authorization
 Revision 2 — animal cost (at importation)

 

August 19, 2010

 

Gary Hattersley, Ph.D.
 Vice President, Biology
  RADIUS HEALTH, INC.
 5th Floor
 300 Technology Square
 Cambridge, MA 02139
 United States
 ghattersley@radiuspharm.com

 

Dear Gary,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval.  For your convenience, we have provided the following summary of the titles and prices of the studies and/or study components under discussion.  If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below.  (If all studies and/or components are not being authorized at this time, please initial the studies and components you wish to authorize and sign and date the authorization line below.  If all studies are being authorized at this time, merely sign and date the authorization line below, leaving the studies and component boxes empty).  These prices are valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initials
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
670647
    A 16-Month Osteoporosis Intervention Study in   the [*]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Animal cost: [*]
    Price with [*] % pre-discount:
   Total with [*] % MPM discount:
    	
 
    	
$[*]   US
    $[*] US
   $180,009 US
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study.  Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study # 670647 — 50% of animals cost of at importation

 

	
$[*] US (50%) at importation
    

 

The screening and selection has been completed.  Animal importation will take place between weeks of August 09, 2010 to August 23.  The animal arrival at CRL will take place during week of October 4, 2010.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every commercially reasonable effort to accommodate requested schedule changes.  However, the following fees would be applicable:

 

Per diem fees at a rate of $[*] US/animal per day ($[*]/day) would be invoiced in the event of a delay in the importation date planned for August 23, 2010.

 

In the event of cancellation:

 

Upon importation, Radius would be responsible for housing fees of [*] animals at a rate of $[*] US/animal per day.  The cost for animal reservation and importation ($[*]) would be applied towards the purchase of [*] animals at which point ownership of the animals would be transferred to Radius.  Radius would also have an option for the direct purchase of the remaining [*] animals reserved for this study (at a rate of $[*] US per animal).

 

Following importation, per diem fees would be invoiced for the [*] animals imported until the animals are placed elsewhere ($[*] US/animal per day).  Ownership of [*] animals would also be transferred to Radius with an option for the direct purchase of [*] animals.

 

The parties will negotiate in good faith a maximum amount of the housing charges.  The agreed amount would then be indicated in an amendment to this Letter of Payment Authorization.

 

Charles River shall perform these services in accordance with the services agreement (the “Agreement”) executed between Charles River and RADIUS HEALTH, INC. Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

2

 

responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

In the event of a conflict between the terms set forth in this Letter of Payment Authorization and the Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

	
/s/   Stéphane Besner
    	
 
    	
/s/   B.N. Harvey
    
	
Stéphane   Besner, B.Sc., M.B.A
   Client Manager, Sales & Marketing
   Charles River Laboratoires
   Preclinical Services Montreal Inc.
   Tel: (514) 630-2436 Fax: (514) 630-8230
   e-mail: stephane.besner@crl.com
    	
 
    	
Authorized   Sponsor Representative 
    
	
 
    	
 
    
	
 
    	
B.N.   Harvey
    
	
 
    	
Print   (Name and Title)
    
	
 
    	
 
    
	
 
    	
August   20, 2010
    
	
 
    	
Date
    

 

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to 514-630-8230.

 

	
Charles River Laboratories
   Preclinical Services Montréal Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Michele Marcoux
    	
 
    	
 
    
	
Michele Marcoux, CMA
   Site Controller
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Sept. 01, 2010
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

 

A counter signed version of this document will be returned to you for your records.

 

c.c. M. Marcoux, S. Pryce, D. Trembley, S Y. Smith, Main File

 

3

 

[CHARLES RIVER LETTERHEAD]

 

AMENDED LETTER OF PAYMENT AUTHORIZATION
 AMENDMENT NUMBER 1

 

26 October 2009

 

Gary Hattersley, Ph.D.
 VP, Biology
 RADIUS
 300 Technology Square, 5th Floor
 Cambridge, MA 02139
 Telephone: 617.551.4703
 Email: ghattersley@radiuspharm.com

 

Re:          Charles River Study Number SSU00067

 

Dear Dr. Hattersley,

 

This communication is to serve as an amendment to the Letter of Payment Authorization for the above referenced study, which is being performed at Charles River.  Charles River shall perform these services in accordance with the existing Service Agreement executed between Charles River and RADIUS.  Once fully executed, this Amended LOPA shall be incorporated into and made part of the existing Service Agreement.

 

Charles River Study Number SSU00067
  A 14-Day Local Tolerance Study in Rabbits with a 7-Day Recovery Period

 

·                  Added TK Reporting at Charles River

 

·                  Added archiving for 1 year following Final Report issuance

 

The additional cost of this study change is as follows:

 

·                  $12,700.00        Due upon authorization

 

New Total Price of Study: $62,700

 

As acceptance of this agreement, please sign this Amended Letter of Payment Authorization and return to Charles River by fax at 419-647-6560.

 

 

	
/s/   B.N. Harvey
    	
 
    	
/s/   Jason W. Smedley
    
	
Sponsor   Representative
    	
 
    	
Jason   W. Smedley, B.S.
    
	
 
    	
 
    	
Study   Director
    
	
B.N.   Harvey
    	
 
    	
26   October 2009
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

 

[CHARLES RIVER LETTERHEAD]

 

AMENDED LETTER OF PAYMENT AUTHORIZATION
 AMENDMENT NUMBER 2

 

13 November 2009

 

Gary Hattersley, Ph.D.
 VP, Biology
 RADIUS
 300 Technology Square, 5th Floor
 Cambridge, MA 02139
 Telephone: 617.551.4703
 Email: ghattersley@radiuspharm.com

 

Re:          Charles River Study Number SSU00067

 

Dear Dr. Hattersley,

 

This communication is to serve as an amendment to the Letter of Payment Authorization for the above referenced study, which is being performed at Charles River.  Charles River shall perform these services in accordance with the existing Service Agreement executed between Charles River and RADIUS.  Once fully executed, this Amended LOPA shall be incorporated into and made part of the existing Service Agreement.

 

Charles River Study Number SSU00067
  A 14-Day Local Tolerance Study in Rabbits with a 7-Day Recovery Period

 

·                  Added second phase to study consisting of 5 females/group in 2 groups and 2 alternates; dose on Day 1 (24 hour exposure); mortality checks twice daily; detailed clinical observations weekly; cage-side observations daily; dermal observations twice on Day 1 and once daily thereafter; body weights weekly; clinical pathology pretest, Day 1, and Day 8; gross necropsy (save treated and untreated skin).

 

The additional cost of this study change is as follows:

 

·                  $6,300.00             Due upon authorization

 

New Total Price of Study: $69,000

 

As acceptance of this agreement, please sign this Amended Letter of Payment Authorization and return to Charles River by fax at 419-647-6560.

 

 

	
/s/   B.N. Harvey
    	
 
    	
/s/   Jason W. Smedley
    
	
Sponsor   Representative
    	
 
    	
Jason   W. Smedley, B.S.
    
	
 
    	
 
    	
Study   Director
    
	
B.N.   Harvey
    	
 
    	
13   November 2009
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
16   Nov 2009
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

 

 

[LETTERHEAD OF CHARLES RIVER]
 accelerating drug development. exactly.

 

Study Authorization

 

	
February 9, 2009
    	
 
    
	
 
    	
 
    
	
Maria Grunwald
    	
 
    
	
Radius Health, Inc.
    	
cc: Gary Hattersley
    
	
300 Technology Square, 5th Flr.
    	
 
    
	
Cambridge, MA 02139
    	
 
    
	
USA
    	
 
    

 

Dear Maria,

 

Following our recent discussions, we are pleased to attach the following revised proposal, for your approval.

 

	
Authorization
   Initials
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Study   No. 182252
    Set-Up And Pre-Validation Of An HPLC Method For The Determination Of   BA058 And PTH In Dose Formulations

 

Price:
   Price: (with [*] % MPM discount)
   Estimated 7-10 days*
    	
 
    	
 

 

 

 

   US$[*]/day

US$[*]/day
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Study   No. 182253
    Validation Of An HPLC Method For The Determination Of BA058 And PTH   In Dose Formulations
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Price:
   Price: (with [*] % MPM discount)
    	
 
    	
US$[*]

US$21,850
    

 

* Please note that the above price is based on an estimated number of days of work to be performed. Should the estimate differ from the actual number of days needed, the Sponsor will be invoiced accordingly. Please also note that the Sponsor will be updated regularly on progress.

 

Please sign and return this document via facsimile or email as soon as possible (contact information provided below). Should you have any questions or require any additional information, please do not hesitate to call me. We look forward to being of service.

 

Best regards,

 

	
/s/   Gareth Meekin
    	
 
    	
 
    
	
Gareth   Meekin, MBA
    	
 
    	
/s/   B.N. Harvey
    
	
Global   Key Account Manager, Sales & Marketing
    	
 
    	
Authorized   Sponsor Representative
    
	
Charles   River Laboratories
    	
 
    	
 
    
	
Preclinical   Services Montreal, Inc.
    	
 
    	
 
    
	
22022   Transcanadienne
    	
 
    	
B.N.   Harvey
    
	
Senneville,   Quebec, Canada, H9X 3R3
    	
 
    	
Print   (Name and Title)
    
	
Phone:   (514) 630-2381 Fax: (514) 630-8230
    	
 
    	
 
    
	
E-Mail: gareth.meekin@crl.com
    	
 
    	
Feb 11, 2009
    
	
Website:   www.criver.com
    	
 
    	
Date
    

 

Charles River

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

[LETTERHEAD OF CHARLES RIVER]
 accelerating drug development. exactly.

 

Letter of Payment Authorization — Revision 1

 

16 August 2010

 

Gary Hattersley, PhD
 VP, Biology
 RADIUS
 300 Technology Square, 5th Floor Cambridge, MA 02139
 Phone: 617.551.4703
 Email:  ghattersley@radiuspharm.com

 

Dear Dr. Hattersley,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval. For your convenience, we have provided the following summary of the title and price of the studies and/or study components under discussion. If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below. This price is valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initial’s
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Study   # 20001926
   Title: A 7-Day Dermal Bridging Study in [*]

(Reference   scope of work dated: 06-Aug-2010)
    	
 
    	
$ 49,900
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received. Please note that scheduling is not considered confirmed until a signed copy of this document is received. By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study. Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study Number 20001926

 

The payment schedule and price of this study are as follows:

 

·                  25%                        Due upon Authorization*

·                  50%                        Due upon Completion of In-life

·                  25%                        Due upon Submission of Draft Report

 

*Invoice(s) will be sent no more than 60 days prior to scheduled study start.

 

In the event Charles River does not receive comments pertaining to the draft report within 60 days after submission to the Sponsor, the final invoice will be due and payable.

 

Based upon the current scope of work, we would expect to initiate this study in late October/early November, 2010. Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances. Charles River will make every reasonable effort to accommodate requested

 

Charles River

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

Created on: August 16, 2010

Sponsor: RADIUS

 

schedule changes. Charles River shall perform these services in accordance with the Service Agreement (the “Agreement”) executed between Charles River and RADIUS. Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES. After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River. At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River for (1) year. Subsequently, storage details will be documented in the raw data. After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement

 

REPEAT OF SAMPLE ANALYSIS. If applicable, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required. If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor. Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution. However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates. Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis. Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES. Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor. Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

In the event of a conflict between the terms set forth in this letter and the Master Service Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

2

 

Created on: August 16, 2010

Sponsor: RADIUS

 

Please sign and return this document via facsimile or email (contact information below). Should you have any questions or require any additional information, please do not hesitate to call me. We look forward to being of service.

 

Best regards,

 

	
/s/   April Jackson
    	
 
    	
 
    
	
April Jackson
    	
 
    	
/s/   B.N. Harvey
    
	
Client   Manager
    	
 
    	
Authorized   Sponsor Representative
    
	
Charles   River
    	
 
    	
 
    
	
Preclinical   Services
    	
 
    	
B.N.   Harvey, CFO
    
	
Phone:   419.647.4196
    	
 
    	
Print   (Name and Title)
    
	
Fax:   419.647.6560
    	
 
    	
 
    
	
E-Mail:   April.Jackson@crl.com
    	
 
    	
August   16, 2010
    
	
 
    	
 
    	
Date
    

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to April Jackson at 419.647.6560.

 

3

 

Created on: August 16, 2010

Sponsor: RADIUS

 

	
Title:
    	
 
    	
A   7-Day Dermal Bridging Study in [*]
    
	
 
    	
 
    	
 
    
	
Study   Number:
    	
 
    	
20001926
    
	
 
    	
 
    	
 
    
	
Charles   River Facility:
    	
 
    	
Ohio
    
	
 
    	
 
    	
 
    
	
Compliance:
    	
 
    	
GLP   
    
	
 
    	
 
    	
 
    
	
Species/Strain:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Preparation
    (assumes basic dose preparation):
    	
 
    	
Test   material to be dispensed as received; no samples obtained.
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Analysis
    (assumes standard HPLC-UV method:
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    
	
Dosing   Regimen:
    	
 
    	
Once   daily for 7 days.
    
	
 
    	
 
    	
 
    
	
Route   of Administration:
    	
 
    	
Transdermal   dose administration [*].
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Number of Animals
    
	
Test System:
    	
 
    	
Group
    	
 
    	
Dose
    	
 
    	
Males
    	
 
    	
Females
    
	
 
    	
 
    	
1
    	
 
    	
Control
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
2
    	
 
    	
High
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Spares:
    	
 
    	
[*]   animals
    
	
 
    	
 
    	
 
    
	
Total Population:
    	
 
    	
[*]   animals
    
	
 
    	
 
    	
 
    
	
Age:
    	
 
    	
Approximately   3 - 4 months at receipt
    
	
 
    	
 
    	
 
    
	
Source:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Pretreatment Period:
    	
 
    	
Approximately   14 days
    
	
 
    	
 
    	
 
    
	
Mortality:
    	
 
    	
Mortality:   twice daily on all animals
    
	
 
    	
 
    	
 
    
	
Detailed   Observations:
    	
 
    	
Pre-dose   and daily on all animals.
    
	
 
    	
 
    	
 
    
	
Body   Weight:
    	
 
    	
Pre-dose   and Days 1, 3, 5, 7 and 8 on all animals
    
	
 
    	
 
    	
 
    
	
Special   Assessments:
    	
 
    	
Draize   dermal scoring daily on all animals.
    
	
 
    	
 
    	
 
    
	
Toxicokinetic   Samples Collection:
    	
 
    	
Toxicokinetic   samples obtained from all animals at pre-dose, 15, 30 45, 60, 120, 180, and   240 minutes on Day 1 and 7 (192 samples total). Samples to be shipped to   sponsor designated laboratory.
    
	
 
    	
 
    	
 
    
	
Toxicokinetic   Sample Analysis:
    	
 
    	
At   additional cost.
    
	
 
    	
 
    	
 
    
	
Toxicokinetic   Reporting:
    	
 
    	
At   additional cost.
    
	
 
    	
 
    	
 
    
	
Terminal   Procedures:
    	
 
    	
Full   gross necropsy with limited tissue collection (identification, skin treated   and skin untreated) on all animals.
    
	
 
    	
 
    	
 
    
	
Histopathology:
    	
 
    	
Standard   histopathology (up to 3 tissue sections) from all animals.
    
	
 
    	
 
    	
 
    
	
Audited   Draft Report:
    	
 
    	
Audited   draft report to be provided in approximately 8 weeks from the time of in-life   completion.
    
	
 
    	
 
    	
 
    
	
Archiving:
    	
 
    	
Archiving   of appropriate study related materials with Charles River for 1 year   following issuance of final report.
    

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

4

 

[CHARLES RIVER LETTERHEAD]

 

Letter of Payment Authorization
 Revision 2 – Screening portion only

 

May 26, 2010

 

Gary Hattersley, Ph.D.
 Vice President, Biology
  RADIUS HEALTH, INC.
 5th Floor
 300 Technology Square
 Cambridge, MA 02139
 United States
 ghattersley@radiuspharm.com

 

Dear Gary,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval.  For your convenience, we have provided the following summary of the titles and prices of the studies and/or study components under discussion.  If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below.  (If all studies and/or components are not being authorized at this time, please initial the studies and components you wish to authorize and sign and date the authorization line below.  If all studies are being authorized at this time, merely sign and date the authorization line below, leaving the studies and component boxes empty).  These prices are valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initials
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
670647
    A 16-Month Osteoporosis Intervention Study in   the [*]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Screening of [*] Animals:
    Price with [*] % pre-discount:
   Total with [*] % MPM discount:
    	
 
    	
$[*]          US
    $[*]          US
   $ 50,000 US
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study.  Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study # 670647 — Screening of [*] Animals

 

·                  $ 50,000 US       At authorization

 

Based upon the current scope of work, we would propose to initiate the screening in May, 2010.  If animal importation is performed on or around August 11, 2010, the animal arrival at CRL would occur during week of October 4, 2010.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every commercially reasonable effort to accommodate requested schedule changes.  However, the following fees would be applicable:

 

Per diem fees at a rate of $[*] US/animal per day ($[*]/day) would be invoiced in the event of a delay in the importation date planned for August 11, 2010.

 

In the event of a cancellation:

 

Before importation, the entire cost of the screening ($50,000US) and of the animal reservation ($138,807 US) would be lost.  Alternatively, Radius would have an option for the DIRECT purchase of up to [*] animals with the reservation fees paid.  Should the option be exercised, Radius would then be responsible for housing fees at a rate of $[*] US/animal per day.

 

Following importation, in addition to the screening and reservation cost, per diem fees would be invoiced until the animals are placed elsewhere ($[*] US/animal per day).  Radius would also have an option for the purchase of up to [*] animals with the reservation fees paid.  Should the option be exercised, Radius would then be responsible for housing fees at a rate of $[*] US/animal per day.

 

Charles River shall perform these services in accordance with the services agreement (the “Agreement”) executed between Charles River and RADIUS HEALTH, INC.  Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

2

 

In the event of a conflict between the terms set forth in this Letter of Payment Authorization and the Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

 

	
 
    	
 
    	
/s/   B.N. Harvey
    
	
/s/   Stéphane Besner
    	
 
    	
Authorized   Sponsor Representative
    
	
Stéphane   Besner, B.Sc., M.B.A
    	
 
    	
 
    
	
Client   Manager, Sales & Marketing
    	
 
    	
B.N.   Harvey
    
	
Charles   River Laboratoires
    	
 
    	
Print   (Name and Title)
    
	
Preclinical   Services Montreal Inc.
    	
 
    	
 
    
	
Tel:   (514) 630-2436 Fax: (514) 630-8230
    	
 
    	
5/26/10
    
	
e-mail: stephane.besner@crl.com
    	
 
    	
Date
    

 

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to 514-630-8230.

 

	
Charles River Laboratories
    	
 
    	
 
    
	
Preclinical Services Montréal Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Catherine Konidas
    	
 
    	
 
    
	
Catherine   Konidas, MBA
    	
 
    	
 
    
	
Site   Director, Montreal
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Michele Marcoux
    	
 
    	
 
    
	
Michele   Marcoux, CMA
    	
 
    	
 
    
	
Site   Controller
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
June   2, 2010
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

A counter signed version of this document will be returned to you for your records.

 

c.c.  C. Konidas, S. Pryce, D. Trembley, S Y. Smith, Main File

 

3

 

[CHARLES RIVER LETTERHEAD]

 

Letter of Payment Authorization
 Revision 2 – Animal reservation only

 

May 26, 2010

 

Gary Hattersley, Ph.D.
 Vice President, Biology
  RADIUS HEALTH, INC.
 5th Floor
 300 Technology Square
 Cambridge, MA 02139
 United States
 ghattersley@radiuspharm.com

 

Dear Gary,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval.  For your convenience, we have provided the following summary of the titles and prices of the studies and/or study components under discussion.  If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below.  (If all studies and/or components are not being authorized at this time, please initial the studies and components you wish to authorize and sign and date the authorization line below.  If all studies are being authorized at this time, merely sign and date the authorization line below, leaving the studies and component boxes empty).  These prices are valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initials
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
670647
    A 16-Month Osteoporosis Intervention Study in   the [*]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Animal cost: ([*])
    Price with [*] % pre-discount:
   Total with [*] % MPM discount:
    	
 
    	
$          [*]US
    $          [*]US
   $  138,807US
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study.  Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study # 670647 – Reservation of [*] Animals

 

·                  $ 138,807 US     7 weeks after authorization

 

Based upon the current scope of work, we would propose to initiate the screening in May, 2010.  If animal importation is performed on or around August 11, 2010, the animal arrival at CRL would occur during week of October 4, 2010.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every commercially reasonable effort to accommodate requested schedule changes.  However, the following fees would be applicable:

 

Per diem fees at a rate of $ [*] US/animal per day ([*] $/day) would be invoiced in the event of a delay in the importation date planned for August 11, 2010.

 

In the event of a cancellation:

 

Before importation, the entire cost of the screening ($50,000US) and of the animal reservation ($138,807 US) would be lost.  Alternatively, Radius would have an option for the DIRECT purchase of up to [*] animals with the reservation fees paid.  Should the option be exercised, Radius would then be responsible for housing fees at a rate of $ [*] US/animal per day.

 

Following importation, in addition to the screening and reservation cost, per diem fees would be invoiced until the animals are placed elsewhere ($[*] US/animal per day).  Radius would also have an option for the purchase of up to [*] animals with the reservation fees paid.  Should the option be exercised, Radius would then be responsible for housing fees at a rate of $ [*] US/animal per day.

 

Charles River shall perform these services in accordance with the services agreement (the “Agreement”) executed between Charles River and RADIUS HEALTH, INC.  Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

2

 

In the event of a conflict between the terms set forth in this Letter of Payment Authorization and the Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

 

	
 
    	
 
    	
/s/   B.N. Harvey
    
	
 
    	
 
    	
Authorized   Sponsor Representative
    
	
Stéphane   Besner, B.Sc., M.B.A
    	
 
    	
 
    
	
Client   Manager, Sales & Marketing
    	
 
    	
B.N.   Harvey
    
	
Charles   River Laboratoires
    	
 
    	
Print   (Name and Title)
    
	
Preclinical   Services Montreal Inc.
    	
 
    	
 
    
	
Tel:   (514) 630-2436 Fax: (514) 630-8230
    	
 
    	
5/26/10
    
	
e-mail:   stephane.besner@crl.com
    	
 
    	
Date
    

 

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to 514-630-8230.

 

	
Charles River Laboratories
    	
 
    	
 
    
	
Preclinical Services Montréal Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Catherine Konidas
    	
 
    	
 
    
	
Catherine   Konidas, MBA
    	
 
    	
 
    
	
Site   Director, Montreal
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Michele Marcoux
    	
 
    	
 
    
	
Michele   Marcoux, CMA
    	
 
    	
 
    
	
Site   Controller
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
June   2, 2010
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

A counter signed version of this document will be returned to you for your records.

 

c.c.  C. Konidas, S. Pryce, D. Trembley, S Y. Smith, Main File

 

3

 

[CHARLES RIVER LETTERHEAD]

 

LETTER OF PAYMENT AUTHORIZATION

 

August 23, 2004

 

Ben Lane
  NuVios
 197M Boston Post Road
 Marlborough, MA 01752
 Fax: 847-680-5023
 Email: ben.c.lane@sbcglobal.net

 

Re: SSU00006: “PHARMACOKINETICS OF A TEST ARTICLE FOLLOWING SUBCUTANEOUS IMPLANT IN OVARIECTOMIZED FEMALE SWISS WEBSTER MICE.”

 

This communication serves as a Letter of Payment Authorization (LOPA) for the above referenced study, which will be performed at Charles River Discovery Development Services - Worcester Division (CR-DDS-Worcester Division) as set forth below.  CR-DDS-Worcester Division shall perform these services in accordance with the Services Agreement executed between CRL and Nuvios, Inc. Once fully executed, this LOPA shall be incorporated into and made part of the Service Agreement.

 

The payment schedule and price of this study are as follows:

 

·                  (100%)       $29,400          Due Upon In-Life Completion

 

Total Price of Study: $29,400

 

In the event the study design is altered, or the study is postponed or cancelled, payments will be amended as follows:

 

The price impact (if any) of the protocol amendment/change order will be submitted in writing.  If study prices are increased, the difference will be invoiced and payable upon acceptance by the Sponsor.  If study prices decrease, the Sponsor will be credited for the difference.

 

In the event CR-DDS- Worcester Division does not receive comments pertaining to the draft report within 60 days after submission to the Sponsor, the final invoice will be due and payable.  Authorization to finalize the report must be received within six (6) months of draft report submission (unless agreed upon differently with the Sponsor) after which CR-DDS- Worcester Division will automatically finalize the report and submit to the Sponsor.

 

As acceptancepf.this agreement, please sign this Letter of Payment Authorization and return to Jessica Metterville at the letterhead address (or fax to Jessica Metterville at 508.890.0192).

 

	
/s/   Christopher K. Mirabelli, Acting CEO
    	
 
    	
/s/   Jessica Metterville
    
	
Sponsor   Representative
    	
 
    	
Jessica   Metterville
    
	
 
    	
 
    	
Client   Services
    
	
Christopher   K. Mirabelli
    	
 
    	
August 23,   2004
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
August   25, 2004
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

 

[CHARLES RIVER LETTERHEAD]

 

Letter of Payment Authorization

 

April 8, 2010

 

Gary Hattersley, Ph.D.
 Vice President, Biology
  RADIUS HEALTH, INC.
 5th Floor
 300 Technology Square
 Cambridge, MA 02139
 United States
 ghattersley@radiuspharm.com

 

Dear Gary,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval.  For your convenience, we have provided the following summary of the titles and prices of the studies and/or study components under discussion.  If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below.  (If all studies and/or components are not being authorized at this time, please initial the studies and components you wish to authorize and sign and date the authorization line below.  If all studies are being authorized at this time, merely sign and date the authorization line below, leaving the studies and component boxes empty).  These prices are valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initials
    	
 
    	
Study Number and Title
    	
 
    	
Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
670647
    A 16-Month Osteoporosis Intervention Study in   the [*]
    (Reference scope of work dated: 03/12/2010)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Screening   of: [*] Animals

Revised Price with [*]% MPM discount:
    	
 
    	
[*]

$ 14,960 US
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study.  Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study # 670647 — Screening of [*] Animals

 

The payment schedule of this study is as follows:

 

·                  100%     Billing as per work performed

 

Based upon the current scope of work, we would propose to initiate these studies in Q2, 2010.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every commercially reasonable effort to accommodate requested schedule changes.

 

Charles River shall perform these services in accordance with the services agreement (the “Agreement”) executed between Charles River and RADIUS HEALTH, INC.  Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River for one (1) year at no charge.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River.  Subsequently, storage details will be documented in the raw data.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement.

 

REPEAT OF SAMPLE ANALYSIS.  If applicable for studies involving bioanalytical sample analysis, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

In the event of a conflict between the terms set forth in this Letter of Payment Authorization and the Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

2

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

 

	
 
    	
 
    	
/s/   B.N. Harvey
    
	
Stéphane Besner, B.Sc., M.B.A
    	
 
    	
Authorized   Sponsor Representative
    
	
Client Manager, Sales & Marketing
    	
 
    	
 
    
	
Charles River Laboratoires
    	
 
    	
B.N.   Harvey, CFO
    
	
Preclinical Services Montreal Inc.
    	
 
    	
Print   (Name and Title)
    
	
22022 Transcanadienne
    	
 
    	
 
    
	
Senneville, Québec, Canada H9X 3R3
    	
 
    	
April 8, 2010
    
	
Tel: (514) 630-2436 Fax: (514) 630-8230
    	
 
    	
Date
    
	
e-mail: stephane.besner@crl.com
    	
 
    	
 
    
	
Web site: www.criver.com
    	
 
    	
 
    

 

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to 514-630-8230.

 

	
Charles River Laboratories
    	
 
    	
 
    
	
Preclinical Services Montréal Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Catherine Konidas
    	
 
    	
 
    
	
Catherine   Konidas, MBA
    	
 
    	
 
    
	
Site   Director, Montreal
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Michele   Marcoux
    	
 
    	
 
    
	
Michele   Marcoux, CMA
    	
 
    	
 
    
	
Site   Controller
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
April   14, 2010
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

A counter signed version of this document will be returned to you for your records.

 

c.c.  C. Konidas, S. Pryce, D. Trembley, S Y. Smith, Main File

 

3

 

 

AMENDED LETTER OF PAYMENT AUTHORIZATION

AMENDMENT NUMBER 1

 

25 May 2011

 

Gary Hattersley, PhD

VP, Biology

RADIUS

300 Technology Square, 5th Floor

Cambridge, MA 02139

Phone: 617.551.4703

Email: ghattersley@radiuspharm.com

 

Dear Dr. Hattersley,

 

This communication is to serve as an amendment to the Letter of Payment Authorization for the above referenced study, which is being performed at Charles River Laboratories.  Charles River Laboratories shall perform these services in accordance with the existing Service Agreement executed between Charles River Laboratories and RADIUS.  Once fully executed, this Amended LOPA shall be incorporated into and made part of the existing Service Agreement.

 

Charles River Laboratories Study Number 20009789

 

A 6-Month Dermal Toxicity Study in [*] with 2-Week Recovery

 

·                  ECGs collected on the recovery phase animals prior to recovery phase termination but not evaluated unless needed.

·                  TK blood tubes to be filled with aprotinin

·                  TK/Immuno Interpretation

 

The additional cost of this study change is as follows:

 

·                  $14,165                   Due upon authorization

 

New Total Price of Study:  $420,765

 

As acceptance of this agreement, please sign this Amended Letter of Payment Authorization and return to Charles River Laboratories by fax at 419-647-6560.

 

	
/s/   B.N. Harvey
    	
 
    	
/s/   April Jackson
    
	
Sponsor   Representative
    	
 
    	
April Jackson
    
	
 
    	
 
    	
Account   Manager
    
	
B.N.   Harvey, CFO
    	
 
    	
25May2011
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
May   27, 2011
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

Charles River Laboratories LOPA

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

 

AMENDED LETTER OF PAYMENT AUTHORIZATION

AMENDMENT NUMBER 2 — Revision 1

 

July 20, 2011

 

Gary Hattersley, PhD

VP, Biology

RADIUS

300 Technology Square, 5th Floor

Cambridge, MA 02139

Phone: 617.551.4703

Email: ghattersley@radiuspharm.com

 

Dear Dr. Hattersley,

 

This communication is to serve as an amendment to the Letter of Payment Authorization for the above referenced study, which is being performed at Charles River Laboratories.  Charles River Laboratories shall perform these services in accordance with the existing Service Agreement executed between Charles River Laboratories and RADIUS.  Once fully executed, this Amended LOPA shall be incorporated into and made part of the existing Service Agreement.

 

Charles River Laboratories Study Number 20009789

 

A 3-Month Dermal Toxicity Study in [*] with 2-Week Recovery

 

·                  Study duration changed from 6 months to 3 months

 

The reduced cost of this study change is as follows:

 

·                  -$ [*]

 

New Total Price of Study:  $329,265

 

Revised Payment Schedule for $329,265:

 

Payments Sent:

 

Study Authorization: $ [*]

 

Study Initiation: $ [*]

 

ALOPA#1: $ [*]

 

Payments to be invoiced:

 

Month 2: $ [*]

 

Month 3: $ [*]

 

Submission of Draft Report (5%): $16,465

 

Submission of Final Report** (5%): $16,465

 

** Final payment milestone due within 45 days of the draft report if no response from the sponsor over the draft report.

 

Charles River Laboratories ALOPA

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

As acceptance of this agreement, please sign this Amended Letter of Payment Authorization and return to Charles River Laboratories by fax at 419-647-6560.

 

	
B.N.   Harvey
    	
 
    	
/s/   April Jackson
    
	
Sponsor   Representative
    	
 
    	
April Jackson
    
	
 
    	
 
    	
Client   Manager
    
	
B.N. Harvey, CFO
    	
 
    	
20-Jul-2011
    
	
Print   (Name and Title)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
May 27, 2011
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

2

 

 

Letter of Payment Authorization – Revision 3

 

April 29, 2011

 

Gary Hattersley, PhD

VP, Biology

RADIUS

300 Technology Square, 5th Floor

Cambridge, MA 02139

Phone: 617.551.4703

Email: ghattersley@radiuspharm.com

 

Dear Dr. Hattersley,

 

We thank you for your interest in Charles River and hope the attached proposal meets with your approval. For your convenience, we have provided the following summary of the title and price of the studies and/or study components under discussion. If you would like us to proceed with animal orders resource allocation, sign and date the authorization line below. This price is valid for 60 days, but may be modified by mutual agreement if changes to the scope of work are made.

 

	
Authorization
   Initial’s
    	
 
    	
Study Number and Title
    	
 
    	
Price
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Study   # 20009789 
   Title: A 6-Month Dermal Toxicity Study in [*] with   2-Week Recovery
    	
 
    	
$
    	
 406,600
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Optional 3-Month Main Extension (dosing and observations only):
    	
 
    	
$
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Expediting Reporting (writing only)*

 

*Does not include expediting of study related parameters, only of   writing of physical report.
    	
 
    	
$
    	
[*] per week
    	
 
    

 

In order to minimize the impact of study delays and cancellations for all sponsors, Charles River allocates resources at the time a signed Letter of Payment Authorization is received.  Please note that scheduling is not considered confirmed until a signed copy of this document is received.  By providing authorization via signature below, you will allow us to confirm a schedule for each authorized study. Your signature further constitutes acceptance of the price and payment schedule.

 

Payment Schedule for Study Number 20009789

 

The payment schedule and price of this study are as follows:

	
·
    	
 
    	
15%
    	
 
    	
Due   upon Authorization*
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   upon Study Initiation (Day 1)
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   Interim – Month 2
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   Interim – Month 3
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   Interim – Month 4
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   Interim – Month 5
    
	
·
    	
 
    	
12.5%
    	
 
    	
Due   Interim – Month 6
    
	
·
    	
 
    	
5%
    	
 
    	
Due   upon Submission of Draft Report
    
	
·
    	
 
    	
5%
    	
 
    	
Due   upon Submission of Final Report**
    

 

*Invoice(s) will be sent no more than 60 days prior to scheduled study start.

** Final payment milestone due within 45 days of the draft report if no response from the sponsor over the draft report.

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

1

 

In the event Charles River does not receive comments pertaining to the draft report within 60 days after submission to the Sponsor, the final invoice will be due and payable.

 

Based upon the current scope of work, we would expect to initiate this study (Day 1) in early to mid July, 2011.  Prior to receipt of this signed Letter of Payment Authorization this initiation date may be lost to another study vying for the same resources.

 

We understand that occasionally you may request to delay or to cancel a study due to unforeseen circumstances.  Charles River will make every reasonable effort to accommodate requested schedule changes and will be handled in accordance with the Service Agreement.

 

Charles River shall perform these services in accordance with the Service Agreement (the “Agreement”) executed between Charles River and RADIUS.  Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement.

 

STUDY MATERIAL STORAGE/ARCHIVES.  After dispatch of the draft report, all raw data, samples/specimens (except for those sent to Sponsor or Sponsor designated laboratory and resultant data which are the responsibility of Sponsor) and documents generated at Charles River during this study, together with the original copy of the protocol (including amendments) and the draft report, will be retained in the secure storage area of Charles River.  At finalisation, the final report and any stored materials will be transferred to the scientific archives of Charles River for (1) year.  Subsequently, storage details will be documented in the raw data.  After this one (1) year period, Sponsor will be contacted prior to the end of the year to authorize continued storage or return to Sponsor, at additional cost.

 

Any additional storage, archiving or retention will require an Extended Archiving Agreement

 

REPEAT OF SAMPLE ANALYSIS.  If applicable, the parties agree that as of commencement of work, in some instances, repeat of sample analysis will be required.  If this arises, Charles River must notify the Sponsor as soon as possible and determine, between the parties, if these repeats are required by Sponsor.  Consequently, the price per sample analysis/occasion will apply to any additional repeats requested by the Sponsor, as well as any samples above the analytical range, which require dilution.  However, in the event that additional sample analysis/occasions are required, Charles River shall submit a written estimate to the Sponsor for the Sponsor’s written approval, and the Sponsor shall respond to Charles River within five (5) business days, or within the specified time period sanctioned by the Sponsor for receipt of such estimates.  Once authorization is received, Charles River will endeavor, when possible, to proceed with current batches of sample analysis.  Both parties acknowledge that Charles River will be reimbursed for any amount which relates to the repeats if the difference between the original result of the sample analysis and the repeat result of the sample analysis, is within a 30% range.

 

SHIPMENT OF TEST ARTICLES.  Sponsor and Charles River agree that all costs associated with shipping test article to Charles River shall be the responsibility of the Sponsor.  Charles River shall not be responsible for any direct or indirect damages sustained by the Sponsor resulting from any loss, destruction or damage to the test article(s).

 

In the event of a conflict between the terms set forth in this letter and the Master Service Agreement, the terms of the Master Service Agreement shall control, unless specifically agreed upon to the contrary in this letter.

 

2

 

Please sign and return this document via facsimile or email (contact information below).  Should you have any questions or require any additional information, please do not hesitate to call me.  We look forward to being of service.

 

Best regards,

 

	
/s/   April Jackson
    	
 
    	
 
    
	
April Jackson
    	
 
    	
/s/ B.N. Harvey
    
	
Client Manager
    	
 
    	
Authorized Sponsor Representative
    
	
Charles River
    	
 
    	
 
    
	
Preclinical Services
    	
 
    	
B.N. Harvey, CFO
    
	
Phone: 419.647.4196 ext 361
    	
 
    	
Print (Name and Title)
    
	
Fax:  419.647.6560
    	
 
    	
 
    
	
E-Mail:    April.Jackson@crl.com
    	
 
    	
April 29, 2011
    
	
 
    	
 
    	
Date
    

 

If a PO is required, please submit PO with Letter of Payment Authorization or fax to April Jackson at 419.647.6560.

 

3

 

	
Title:
    	
 
    	
A   6-Month Dermal Toxicity Study in [*] with 2-Week Recovery
    
	
 
    	
 
    	
 
    
	
Study   Number:
    	
 
    	
20009789
    
	
 
    	
 
    	
 
    
	
Charles River Facility:
    	
 
    	
Ohio
    
	
 
    	
 
    	
 
    
	
Compliance:
    	
 
    	
GLP
    
	
 
    	
 
    	
 
    
	
Species/Strain:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Preparation (assumes basic dose   preparation):
    	
 
    	
Test   material to be dispensed as received; no samples obtained.
    
	
 
    	
 
    	
 
    
	
Dose   Formulation Analysis (assumes standard HPLC-UV method):
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    
	
Dosing   Regimen:
    	
 
    	
Once   daily for 182 days (6 months).
    
	
 
    	
 
    	
 
    
	
Route   of Administration:
    	
 
    	
Transdermal   dose administration [*].
    
	
 
    	
 
    	
 
    
	
Test System:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Number of Animals
    
	
 
    	
 
    	
Group
    	
 
    	
Dose
    	
 
    	
Males
    	
 
    	
Females
    
	
 
    	
 
    	
1
    	
 
    	
Control
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
2
    	
 
    	
Low
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
3
    	
 
    	
High
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

	
 
    	
 
    	
*2 animals/sex/group held   for 2-Week Recovery
    
	
 
    	
 
    	
 
    
	
Spares:
    	
 
    	
[*]   animals
    
	
 
    	
 
    	
 
    
	
Total Population:
    	
 
    	
[*]   animals
    
	
 
    	
 
    	
 
    
	
Age:
    	
 
    	
Approximately   3-4 months at receipt
    
	
 
    	
 
    	
 
    
	
Source:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Pretreatment Period:
    	
 
    	
Approximately   14 days
    
	
 
    	
 
    	
 
    
	
Mortality/Cage   side Observations:
    	
 
    	
Mortality:   twice daily on all animals
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cage-side   Obs: Daily (up to [*] hours post-dose) on all animals
    
	
 
    	
 
    	
 
    
	
Detailed   Observations:
    	
 
    	
Pre-test,   weekly and at termination on all animals.
    
	
 
    	
 
    	
 
    
	
Body   Weight:
    	
 
    	
Pre-test,   weekly and at termination on all animals.
    
	
 
    	
 
    	
 
    
	
Special   Assessments:
    	
 
    	
Ophthalmology   examination on all animals pre-dose and near termination on all animals.   Recovery termination at additional cost.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ECG   measurements at pre-test and near main termination on all animals. Recovery   termination at additional cost.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Draize   dermal scoring weekly on all animals.
    
	
 
    	
 
    	
 
    
	
Clinical   Pathology Parameters:
    	
 
    	
Standard   hematology, clinical chemistry, and coagulation (PT and APTT) performed   pre-test, Day 28, Day 91, and Day 182 on all animals and on Day 197 on   recovery animals.
    

 

*Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

4

 

	
Title:
    	
 
    	
A   6-Month Dermal Toxicity Study in [*] with 2-Week Recovery
    
	
 
    	
 
    	
 
    
	
Study   Number:
    	
 
    	
20009789
    
	
 
    	
 
    	
 
    
	
Toxicokinetic Samples Collection:
    	
 
    	
Toxicokinetic   samples (1.5 mL of plasma) obtained from all animals at 8 time points on Day   1 and Day 182 ([*] samples total). Samples to be shipped to sponsor   designated laboratory.
    
	
 
    	
 
    	
 
    
	
Immunogenicity Samples Collection:
    	
 
    	
1   sample collected from each animal at pre-test and 6-months ([*] samples).   Samples to be shipped to sponsor designated laboratory.
    
	
 
    	
 
    	
 
    
	
Terminal   Procedures:
    	
 
    	
Full   gross necropsy with organ weights and tissue collection on all animals ~Day   183 (main) and ~Day 197 (recovery).
    
	
 
    	
 
    	
 
    
	
Histopathology:
    	
 
    	
Standard   histopathology (up to [*] tissue sections) from all [*] animals.
    
	
 
    	
 
    	
 
    
	
Draft   Report:
    	
 
    	
Audited   draft report provided in approximately 14 weeks from the time of in-life   completion.
    
	
 
    	
 
    	
 
    
	
Archiving:
    	
 
    	
Archiving   materials will be maintained with Charles River for 1 year following the   final report issuance.
    

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

5ex10_1.htm

 

EXHBIT 10.1

 

 

 

 

EXECUTION VERSION

 

August 16, 2011

 

CH Energy Group, Inc.

284 South Avenue

Poughkeepsie, New York 12601-4839

 

Ladies and Gentlemen:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Transaction entered into between J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch (the “Seller”), and CH Energy Group, Inc., a New York corporation (the “Purchaser”), on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the Agreement specified below.

 

This Confirmation evidences a complete and binding agreement between the Seller and the Purchaser as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if the Seller and the Purchaser had executed an agreement in such form (but without any Schedule except for the election of the laws of the State of New York as the governing law but without regard to its choice of law provisions), on the Trade Date.  In the event of any inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.

 

 

ARTICLE 1

Definitions

 

Section 1.01 .  Definitions.  (a) As used in this Confirmation, the following terms shall have the following meanings:

 

“10b-18 VWAP” means, (A) for any Trading Day described in clause (x) of the definition of Trading Day hereunder, the volume-weighted average price at which the Common Stock trades as reported in the composite transactions for United States exchanges and quotation systems, during the regular trading session for the Exchange (or, if applicable, the Successor Exchange on which the Common Stock has been listed in accordance with Section 7.01(c)) on such Trading Day, excluding (i) trades that do not settle regular way, (ii) opening (regular way) reported trades in the consolidated system on such Trading Day, (iii) trades that occur in the last ten minutes before the scheduled close of trading on the Exchange on such Trading Day and ten minutes before the scheduled close of the primary trading in the market where the trade is effected, and (iv) trades on such Trading Day that do not satisfy the requirements of Rule 10b-18(b)(3), as determined in good faith by the Calculation Agent, or (B) for any Trading Day that is described in clause (y) of the definition of Trading Day hereunder, an amount determined in good faith by the Calculation Agent as 10b-18 VWAP.  The Purchaser acknowledges that the Calculation Agent may refer to the Bloomberg Page “CHG US <Equity> AQR SEC” (or any successor thereto), in its judgment, for such Trading Day to determine the 10b-18 VWAP.

 

“Additional Termination Event” has the meaning set forth in Section 7.01.

 

 

 

 

 

 

 

 

 

 

 

 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association.

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746.

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

 

 

 

“Agreement” has the meaning set forth in the second paragraph of this Confirmation.

 

“Affected Party” has the meaning set forth in Section 14 of the Agreement.

 

“Affected Transaction” has the meaning set forth in Section 14 of the Agreement.

 

“Affiliated Purchaser” means any “affiliated purchaser” (as such term is defined in Rule 10b-18) of the Purchaser.

 

“Alternative Termination Delivery Unit” means (i) in the case of a Termination Event (other than following consummation of a Merger Event or Nationalization) or Event of Default (as defined in the Agreement), one share of Common Stock and (ii) in the case of consummation of a Merger Event or Nationalization, a unit consisting of the number or amount of each type of property received by a holder of one share of Common Stock in such Merger Event or Nationalization; provided that if such Merger Event involves a choice of consideration to be received by holders of the Common Stock, an Alternative Termination Delivery Unit shall be deemed to include the amount of cash received by a holder who had elected to receive the maximum possible amount of cash as consideration for his shares.

 

“Bankruptcy Code” has the meaning set forth in Section 9.07.

 

“Black-out Date” shall mean April 2, 2012.

 

“Business Day” means any day on which the Exchange is open for trading.

 

“Calculation Agent” means JPMorgan Chase Bank, National Association.

 

“Cash Distribution” has the meaning set forth in Section 7.01(f).

 

“Cash Distribution Amount” means, for any “Reference Period” set forth in the Pricing Supplement, the amount specified in the Pricing Supplement for such Reference Period.

 

“Cash Settlement Amount” means an amount in cash equal to (i) the absolute value of the Settlement Number multiplied by (ii) the dollar volume weighted average price per share at which Seller or its designated affiliate executes purchases of shares of Common Stock during the Cash Settlement Purchase Period in respect of its hedge position for the Transaction.

 

“Cash Settlement Purchase Period” means the period during which the Seller purchases shares of Common Stock to unwind its hedge position following the Valuation Completion Date.

 

“Common Stock” has the meaning set forth in Section 2.01.

 

“Communications Procedures” has the meaning set forth in Annex C hereto.

 

“Confirmation” has the meaning set forth in the first paragraph of this letter agreement.

 

“Contract Fee” means the amount specified as such in the Pricing Supplement.

 

“Contract Period” means the period commencing on and including the Trade Date and ending on and including the date all payments or deliveries of shares of Common Stock pursuant to Section 3.01 or Section 7.03 have been made.

 

“Default Notice Day” has the meaning set forth in Section 7.02.

 

“De-Listing” has the meaning set forth in Section 7.01(c).

 

 

2

 

 

“Discount” means the amount specified as such in the Pricing Supplement.

 

“Distribution Termination Event” has the meaning set forth in Section 7.01(f).

 

“Early Termination Date” has the meaning set forth in Section 14 of the Agreement.

 

“Event of Default” has the meaning set forth in Section 14 of the Agreement.

 

“Exchange” means the New York Stock Exchange or any successor thereto.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Expiration Date” means the 188th Trading Day following the Trade Date.

 

“Extraordinary Cash Dividend” means the per share cash dividend or distribution, or a portion thereof, declared by the Purchaser on shares of Common Stock that is classified by the board of directors of the Purchaser as an “extraordinary” dividend.

 

“Floor Price” has the meaning specified as such in the Pricing Supplement.

 

“Indemnified Person” has the meaning set forth in Section 9.02.

 

“Indemnifying Party” has the meaning set forth in Section 9.02.

 

“Initial Delivery Percentage” means the percentage specified as such in the Pricing Supplement.

 

“Initial Number of Shares” means the number of shares of Common Stock, rounded down to the nearest integer, equal to the product of (i) the Initial Delivery Percentage and (ii) the Purchase Price divided by the Initial Share Price.

 

“Initial Settlement Date” has the meaning set forth in Section 2.02.

 

“Initial Share Price” means $54.15.

 

“Merger Event” has the meaning set forth in Section 7.01(d).

 

“Nationalization” has the meaning set forth in Section 7.01(e).

 

“New York Banking Day” means any day other than a Saturday, a Sunday, a legal holiday or a day on which banking institutions are authorized or required by law or regulation to close in The City of New York.

 

“Number of Shares” has the meaning set forth in Section 2.01.

 

“Obligations” has the meaning set forth in Section 9.02.

 

“Ordinary Cash Dividend” has the meaning set forth in Section 8.01(b).

 

“Pricing Supplement” means the Pricing Supplement attached hereto as Annex D.

 

“Private Placement Agreement” has the meaning set forth in Annex A hereto.

 

“Private Placement Price” means the private placement value of a share of Common Stock as determined in accordance with Annex A hereto.

 

“Private Placement Shares” has the meaning set forth in Section 3.01(b).

 

 

3

 

 

“Private Placement Procedures” has the meaning set forth in Annex A hereto.

 

“Private Securities” has the meaning set forth in Annex A hereto.

 

“Purchase Price” has the meaning set forth in Section 2.01.

 

“Purchaser” has the meaning set forth in the first paragraph of this Confirmation.

 

“Purchaser Share Cap” means, for any date, (i) 1,750,000 shares of Common Stock, minus (ii) the net number of shares of Common Stock delivered by the Purchaser to the Seller in respect of this Transaction on or prior to such date, plus (iii) the net number of shares of Common Stock delivered by the Seller to the Purchaser in respect of this Transaction on or prior to such date, subject to appropriate adjustments pursuant to Section 8.02(x).

 

“Reference Period” means, for any corresponding “Cash Distribution Amount” specified in the Pricing Supplement, the period specified in the Pricing Supplement for such Cash Distribution Amount.

 

“Registered Shares” has the meaning set forth in Section 3.01(b).

 

“Registered Shares Fee” means the amount specified as such in the Pricing Supplement.

 

“Registration Procedures” has the meaning set forth in Annex B hereto.

 

“Regulation M” means Regulation M under the Exchange Act.

 

“Rule 10b-18” means Rule 10b-18 promulgated under the Exchange Act (or any successor rule thereto).

 

“SEC” means the Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Seller” has the meaning set forth in the first paragraph hereto.

 

“Seller Share Cap” means, for any date, (i) 7,800,000 shares of Common Stock minus (ii) the number of shares of Common Stock delivered by the Seller to the Purchaser in respect of this Transaction on or prior to such date, subject to appropriate adjustments pursuant to Section 8.02(x).

 

“Seller Termination Share Purchase Period” has the meaning set forth in Section 7.03.

 

“Settlement Date” means (i) if Section 3.01 is applicable, the fourth Business Day following the Valuation Completion Date; (ii) if settlement in cash is applicable pursuant to Section 3.01(d), the date of such cash payment determined in accordance with Section 3.01(d)(ii); (iii) if Section 3.01(e) is applicable, the Business Day immediately following the day on which the Seller informs the Purchaser, pursuant to Annex A hereto, of the number of Private Placement Shares required to be delivered; and (iv) if Section 3.01(f) is applicable, each of the dates so advised by the Seller pursuant to Annex B hereto.

 

“Settlement Number” means a number of shares of Common Stock, rounded down to the nearest integer and which number may be negative, equal to (i) the Valuation Number minus (ii) the Initial Number of Shares.

 

“Settlement Shares” has the meaning set forth in Section 3.01(b).

 

“Share De-listing Event” has the meaning set forth in Section 7.01(c).

 

“Successor Exchange” has the meaning set forth in Section 7.01(c).

 

“Termination Amount” has the meaning set forth in Section 7.02.

 

 

4

 

 

“Termination Event” has the meaning set forth in Section 14 of the Agreement.

 

“Termination Price” means the value of an Alternative Termination Delivery Unit to the Seller (determined as provided in Annex A hereto).

 

“Termination Settlement Date” has the meaning set forth in Section 7.03.

 

“Trade Date” has the meaning set forth in Section 2.01.

 

“Trading Day” means (x) any day (i) other than a Saturday, a Sunday or a day on which the Exchange is not open for business, (ii) during which trading of any securities of the Purchaser on any national securities exchange has not been suspended, (iii) during which there has not been, in the Seller’s judgment, a material limitation in the trading of Common Stock or any options contract or futures contract related to the Common Stock, (iv) during which there has been no suspension pursuant to Section 4.02 of this Confirmation and (v) which is not a Black-out Date, or (y) any day that, notwithstanding the occurrence of events contemplated in clauses (ii), (iii) and (iv) of this definition, the Seller determines to be a Trading Day.

 

“Transaction” has the meaning set forth in the first paragraph of this Confirmation.

 

“Valuation Completion Date” has the meaning set forth in the Pricing Supplement.

 

“Valuation Number” means (i) the Purchase Price divided by (ii) the arithmetic average of the 10b-18 VWAPs for all of the Trading Days in the Valuation Period minus the Discount, as determined by the Calculation Agent in its sole judgment; provided that if the result of the calculation in clause (ii) is equal to or less than the Floor Price, then the Valuation Number shall be the Purchase Price divided by the Floor Price.  For the avoidance of doubt, if the Discount is a negative number, the difference in clause (ii) of the immediately preceding sentence shall be equal to the arithmetic average of the 10b-18 VWAPs for all of the Trading Days in the Valuation Period plus the absolute value of the Discount.

 

“Valuation Period” means the period of consecutive Trading Days commencing on and including the first Trading Day following the Trade Date and ending on and including the Valuation Completion Date.

 

 

ARTICLE 2

Purchase of the Stock

 

Section 2.01 .  Purchase of the Stock.  Subject to the terms and conditions of this Confirmation, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell to the Purchaser, on August 16, 2011 or on such other Business Day as the Purchaser and the Seller shall otherwise agree (the “Trade Date”), a number of shares (the “Number of Shares”) of the Purchaser’s common stock, par value $0.10 per share (“Common Stock”), for a purchase price equal to $30,000,000.00 (the “Purchase Price”).  The Number of Shares purchased by the Purchaser hereunder shall be determined in accordance with the terms of this Confirmation.

 

Section 2.02 .  Delivery and Payments.  On the first Business Day immediately following the Trade Date (such day, the “Initial Settlement Date”), the Seller shall deliver the Initial Number of Shares to the Purchaser, upon payment by the Purchaser of (i) an amount equal to the Purchase Price to the Seller and (ii) the Contract Fee to J.P. Morgan Securities LLC; provided that if the Seller is unable to borrow or otherwise acquire a number of shares of Common Stock equal to the Initial Number of Shares for delivery to the Purchaser on the Initial Settlement Date, the Initial Number of Shares shall be reduced to such number of shares of Common Stock as the Seller is able to borrow or otherwise acquire and any amounts payable by the Purchaser pursuant to this Article 2 shall be reduced correspondingly.  Such delivery and payment shall be effected in accordance with the Seller’s customary procedures.

 

Section 2.03 .  Conditions to Seller’s Obligations.  The Seller’s obligation to deliver the Initial Number of Shares to the Purchaser on the Initial Settlement Date is subject to the condition that the representations and warranties made by the Purchaser in the Agreement shall be true and correct as of the date hereof and the Initial Settlement Date.

 

 

5

 

 

 

ARTICLE 3

Subsequent Payments or Share Deliveries

 

Section 3.01 .  Subsequent Payments or Share Deliveries.  (a) (i) If the Settlement Number is greater than zero, the Seller shall deliver to the Purchaser a number of shares of Common Stock equal to the Settlement Number on the Settlement Date in accordance with the Seller’s customary procedures; and

 

(ii)   if the Settlement Number is less than zero, the Purchaser shall make a payment of cash or delivery of shares of Common Stock to the Seller in respect of the absolute value of the Settlement Number, as provided in this Section 3.01.

 

(b) Subject to Section 3.01(c) and pursuant to Section 3.01(a)(ii), payment of the absolute value of the Settlement Number by the Purchaser to the Seller shall be in cash or validly issued shares of Common Stock (“Settlement Shares”), and if in shares of Common Stock, then in shares to be sold in a private placement (“Private Placement Shares”) or registered shares (“Registered Shares”), as the Purchaser shall elect, which binding election shall be made by written notice to the Seller no later than the close of business on the second Business Day following the Valuation Completion Date; provided that by making an election to deliver Settlement Shares pursuant to this Section 3.01(b), the Purchaser shall be deemed to make the representations and warranties in Section 5.01 as if made on the date of the Purchaser’s election; and provided further that if the Purchaser fails to make such election by such date, the Purchaser shall be deemed to have elected settlement in cash.

 

(c)   (i)           Any election by the Purchaser to deliver the absolute value of the Settlement Number in Settlement Shares pursuant to clause (b) of this Section 3.01 shall not be valid, and settlement in cash shall apply, if the representations and warranties made by the Purchaser to the Seller in Section 5.01 are not true and correct in all material respects as of the date the Purchaser makes such election.

 

(ii) Notwithstanding any election by the Purchaser to make payment of the absolute value of the Settlement Number in Settlement Shares pursuant to clause (b) of this Section 3.01, at any time prior to the time the Seller (or any affiliate of the Seller) has contracted to resell all or any portion of such Settlement Shares, the Purchaser may elect to deliver in lieu of such Settlement Shares an amount in cash equal to the absolute value of the Settlement Number with respect to any Settlement Shares not yet contracted to be sold, in which case the provisions of Section 3.01(d) shall apply with respect to such amount; provided that any such election by the Purchaser pursuant to this clause (ii) shall not be valid and settlement in Settlement Shares shall continue to apply if the representations and warranties made by the Purchaser to the Seller in Section 5.01(a) are not true and correct in all material respects as of the date the Purchaser makes such election.

 

(iii) If the Purchaser elects to make payment of the absolute value of the Settlement Number pursuant to clause (b) of this Section 3.01 (A) in Private Placement Shares and fails to comply with the requirements set forth in Section 3.01(e) or Annex A hereto or takes any action that would make unavailable either (1) the exemption set forth in Section 4(2) of the Securities Act for the sale of any Private Placement Shares by the Purchaser to the Seller or (2) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Private Placement Shares by the Seller, or (B) in Registered Shares and fails to comply with the requirements set forth in Section 3.01(f) or Annex B hereto; then in the case of either (A) or (B), the Purchaser shall deliver in lieu of any Private Placement Shares or Registered Shares an amount in cash equal to the absolute value of the Settlement Number with respect to any Settlement Shares not yet sold, in which case the provisions of Section 3.01(d) shall apply with respect to such amount.

 

(d)   (i)           If the Purchaser elects to pay the absolute value of the Settlement Number pursuant to clause (b) of this Section 3.01 in cash, if settlement in cash is otherwise applicable in accordance with this Section 3.01, or if the Purchaser elects to make payment of the absolute value of the Settlement Number in Private Placement Shares pursuant to Section 3.01(e),  then the Calculation Agent shall determine an amount in cash equal to the Cash Settlement Amount.

 

 

6

 

 

(ii)   If cash settlement is applicable, payment of the Cash Settlement Amount shall be made by wire transfer of immediately available U.S. dollar funds on the first Business Day immediately following the date of notification by the Seller to the Purchaser of the Cash Settlement Amount or such later Business Day as determined by the Seller in its sole discretion.

 

(e) If the Purchaser elects to make payment of the absolute value of the Settlement Number pursuant to clause (b) of this Section 3.01 in Private Placement Shares, then on the Settlement Date, the Purchaser shall deliver to the Seller a number of Settlement Shares equal to (A) the Cash Settlement Amount divided by (B) the Private Placement Price (determined by the Calculation Agent in accordance with the Private Placement Procedures contained in Annex A hereto).

 

(f) If the Purchaser elects to make payment of the absolute value of the Settlement Number pursuant to clause (b) of this Section 3.01 in Registered Shares, then the Purchaser shall deliver to the Seller a number of Settlement Shares equal to (A) the absolute value of the Settlement Number plus (B) an additional number of Settlement Shares to take into account the Registered Shares Fee on the absolute value of the Settlement Number.  Such Settlement Shares shall be delivered in such numbers and on such dates on or following the Valuation Completion Date as are specified by the Seller in accordance with the Registration Procedures contained in Annex B hereto.

 

Section 3.02 .  Private Placement Procedures and Registration Procedures.  If the Purchaser elects to deliver Private Placement Shares pursuant to Section 3.01(b) or elects to deliver Alternative Termination Delivery Units pursuant to Section 7.02, the Private Placement Procedures contained in Annex A hereto shall apply, and if the Purchaser elects to deliver Registered Shares pursuant to Section 3.01(b), the Registration Procedures contained in Annex B hereto shall apply.

 

Section 3.03 .  Continuing Obligation to Deliver Shares.  (a) If at any time, as a result of provisions limiting deliveries of shares of Common Stock to the Purchaser Share Cap, the Purchaser fails to deliver to the Seller any shares of Common Stock, the Purchaser shall, to the extent that the Purchaser has at such time authorized but unissued shares of Common Stock not reserved for other purposes, promptly notify the Seller thereof and deliver to the Seller a number of shares of Common Stock not previously delivered as a result of such provisions.

 

(b)   The Purchaser agrees to use its best efforts to cause the number of authorized but unissued shares of Common Stock to be increased, if necessary, to an amount sufficient to permit the Purchaser to fulfill its obligations under this Section 3.03.

 

 

ARTICLE 4

Market Transactions

 

Section 4.01 .  Transactions by the Seller.  (a) The parties agree and acknowledge that:

 

(i) During any Cash Settlement Purchase Period and any Seller Termination Share Purchase Period, the Seller (or its agent or affiliate) may purchase shares of Common Stock in connection with this Confirmation.  The timing of such purchases by the Seller, the price paid per share of Common Stock pursuant to such purchases and the manner in which such purchases are made, including without limitation whether such purchases are made on any securities exchange or privately, shall be within the sole judgment of the Seller; provided that the Seller shall use good faith efforts to make all purchases of Common Stock in a manner that would comply with the limitations set forth in clauses (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18 (but without regard to clause (a)(13)(iv) of Rule 10b-18) as if such rule were applicable to such purchases.

 

(ii) During the Valuation Period, the Seller (or its agent or affiliate) may effect transactions in shares of Common Stock in connection with this Confirmation.  The timing of such transactions by the Seller, the price paid or received per share of Common Stock pursuant to such transactions and the manner in which such transactions are made, including without limitation whether such transactions are made on any securities exchange or privately, shall be within the sole judgment of the Seller.

 

 

7

 

 

(iii) The Purchaser shall, at least one day prior to the first day of the Valuation Period, any Cash Settlement Purchase Period and any Seller Termination Share Purchase Period, notify the Seller of the total number of shares of Common Stock purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception set forth in Rule 10b-18(b)(4) by or for the Purchaser or any of its Affiliated Purchasers during each of the four calendar weeks preceding such day and during the calendar week in which such day occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18), which notice shall be substantially in the form set forth as Exhibit A hereto.

 

(b) The Purchaser acknowledges and agrees that (i) all transactions effected pursuant to Section 4.01 hereunder shall be made in the Seller’s sole judgment and for the Seller’s own account and (ii) the Purchaser does not have, and shall not attempt to exercise, any influence over how, when or whether to effect such transactions, including, without limitation, the price paid or received per share of Common Stock pursuant to such transactions whether such transactions are made on any securities exchange or privately.  It is the intent of the Seller and the Purchaser that this Transaction comply with the requirements of Rule 10b5-1(c) of the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) and the Seller shall take no action that results in the Transaction not so complying with such requirements.

 

(c) Notwithstanding anything to the contrary in this Confirmation, the Purchaser acknowledges and agrees that, on any day, the Seller shall not be obligated to deliver or receive any shares of Common Stock to or from the Purchaser and the Purchaser shall not be entitled to receive any shares of Common Stock from the Seller on such day, to the extent (but only to the extent) that after such transactions the Seller’s ultimate parent entity would directly or indirectly beneficially own (as such term is defined for purposes of Section 13(d) of the Exchange Act) at any time on such day in excess of 8.0% of the outstanding shares of Common Stock.  Any purported receipt or delivery of shares of Common Stock shall be void and have no effect to the extent (but only to the extent) that after any receipt or delivery of such shares of Common Stock the Seller’s ultimate parent entity would directly or indirectly so beneficially own in excess of 8.0% of the outstanding shares of Common Stock.  If, on any day, any delivery or receipt of shares of Common Stock by the Seller is not effected, in whole or in part, as a result of this provision, the Seller’s and Purchaser’s respective obligations to make or accept such receipt or delivery shall not be extinguished and such receipt or delivery shall be effected over time as promptly as the Seller determines, in the reasonable determination of the Seller, that after such receipt or delivery its ultimate parent entity would not directly or indirectly beneficially own in excess of 8.0% of the outstanding shares of Common Stock.

 

Section 4.02 .  Adjustment of Transaction for Securities Laws.  (a) Notwithstanding anything to the contrary in Section 4.01(a), if, based on the advice of counsel, Seller reasonably determines that on any Trading Day, Seller’s trading activity in order to manage its economic hedge in respect of the Transaction would not be advisable in respect of applicable securities laws, then Seller may extend the Expiration Date, modify the Valuation Period or otherwise adjust the terms of the Transaction in its good faith reasonable discretion to ensure Seller’s compliance with such laws and to preserve the fair value of the Transaction to the Seller.  The Seller shall notify the Purchaser of the exercise of the Seller’s rights pursuant to this Section 4.02(a) upon such exercise.

 

(b) The Purchaser agrees that, during the Contract Period, neither the Purchaser nor any of its affiliates or agents shall make any distribution (as defined in Regulation M) of Common Stock, or any security for which the Common Stock is a reference security (as defined in Regulation M) or take any other action that would, in the view of the Seller, preclude purchases by the Seller of the Common Stock or cause the Seller to violate any law, rule or regulation with respect to such purchases; provided, that this clause (b) shall not prohibit any distribution of securities by the Purchaser pursuant to a plan (as defined in Regulation M) that qualifies for the exemption set forth in paragraph (c) of Rule 102 under the Exchange Act.

 

Section 4.03 .  Purchases of Common Stock by the Purchaser.  Without the prior written consent of the Seller, the Purchaser shall not, and shall cause its affiliates and affiliated purchasers (each as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any shares of Common Stock (or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for shares of Common Stock during the Contract Period; provided, however, that this Section 4.03 shall not prohibit: (i) any purchase or offer to purchase effected by or for an issuer plan by an agent independent of the Purchaser (each as defined in Regulation M), (ii) any acquisition or retention of Common Stock in connection with the vesting or exercise of an equity award under any of the Purchaser’s benefit plans or (iii) any termination, cancellation, expiration or other re-acquisition by the Purchaser of any equity award under any of the Purchaser’s benefit plans.

 

 

8

 

 

ARTICLE 5

Representations, Warranties and Agreements

 

Section 5.01 .  Repeated Representations, Warranties and Agreements of the Purchaser.  The Purchaser represents and warrants to, and agrees with, the Seller, on the date hereof and on any date pursuant to which the Purchaser makes an election to deliver Settlement Shares pursuant to Section 3.01, to pay cash in lieu of Settlement Shares pursuant to Section 3.01(c)(ii) or to receive or deliver Alternative Termination Delivery Units pursuant to Section 7.03, that:

 

(a)   Disclosure; Compliance with Laws.  The reports and other documents filed by the Purchaser with the SEC pursuant to the Exchange Act when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.  The Purchaser is not in possession of any material nonpublic information regarding the Purchaser or the Common Stock.

 

(b)    Rule 10b5-1.  The Purchaser acknowledges that (i) the Purchaser does not have, and shall not attempt to exercise, any influence over how, when or whether to effect purchases of Common Stock by the Seller (or its agent or affiliate) in connection with this Confirmation and (ii) the Purchaser is entering into the Agreement and this Confirmation in good faith and not as part of a plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5 promulgated under the Exchange Act.  The Purchaser also acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act.  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act, and no amendment, modification or waiver shall be made at any time at which the Purchaser or any officer or director of the Purchaser is aware of any material nonpublic information regarding the Purchaser or the Common Stock.

 

(c)   Nature of Shares Delivered. Any shares of Common Stock or Alternative Termination Delivery Units delivered to the Seller pursuant to this Confirmation, when delivered, shall have been duly authorized and shall be duly and validly issued, fully paid and nonassessable and free of preemptive or similar rights, and such delivery shall pass title thereto free and clear of any liens or encumbrances.

 

(d)   No Manipulation. The Purchaser is not entering into this Confirmation to create actual or apparent trading activity in the Common Stock (or any security convertible into or exchangeable for Common Stock) or to manipulate the price of the Common Stock (or any security convertible into or exchangeable for Common Stock).

 

(e)   Regulation M.  The Purchaser is not engaged in a distribution, as such term is used in Regulation M, that would preclude purchases by the Purchaser or the Seller of the Common Stock or cause the Seller to violate any law, rule or regulation with respect to such purchases.

 

(f)   Board Authorization. The Purchaser is entering into this Transaction in connection with its share repurchase program, which was approved by its board of directors and publicly disclosed, solely for the purposes stated in such board resolution and public disclosure.  There is no internal policy of the Purchaser, whether written or oral, that would prohibit the Purchaser from entering into any aspect of this Transaction, including, but not limited to, the purchases of shares of Common Stock to be made pursuant hereto.

 

 

9

 

 

(g)   Due Authorization and Good Standing. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of New York.  This Confirmation has been duly authorized, executed and delivered by the Purchaser and (assuming due authorization, execution and delivery thereof by the Seller) constitutes a valid and legally binding obligation of the Purchaser. The Purchaser has all corporate power to enter into this Confirmation and to consummate the transactions contemplated hereby and to purchase the Common Stock and deliver any Settlement Shares in accordance with the terms hereof.

 

(h)   Certain Transactions.  There has not been any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to the Purchaser that would fall within the scope of Rule 10b-18(a)(13)(iv), where such announcement was within the Purchaser’s control.

 

Section 5.02 .  Initial Representations, Warranties and Agreements of the Purchaser.  The Purchaser represents and warrants to, and agrees with the Seller, as of the date hereof, that:

 

(a)   Solvency.  The assets of the Purchaser at their fair valuation exceed the liabilities of the Purchaser, including contingent liabilities; the capital of the Purchaser is adequate to conduct the business of the Purchaser and the Purchaser has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature.

 

(b)   Required Filings.  The Purchaser has made, and will use its best efforts to make, all filings required to be made by it with the SEC, any securities exchange or any other regulatory body with respect to the Transaction contemplated hereby.

 

(c)   No Conflict. The execution and delivery by the Purchaser of, and the performance by the Purchaser of its obligations under, this Confirmation and the consummation of the transactions herein contemplated do not conflict with or violate (i) any provision of the certificate of incorporation, by-laws or other constitutive documents of the Purchaser, (ii) any statute or order, rule, regulation or judgment of any court or governmental agency or body having jurisdiction over the Purchaser or any of its subsidiaries or any of their respective assets or (iii) any contractual restriction binding on or affecting the Purchaser or any of its subsidiaries or any of its assets.

 

(d)   Consents.  All governmental and other consents that are required to have been obtained by the Purchaser with respect to performance, execution and delivery of this Confirmation have been obtained and are in full force and effect and all conditions of any such consents have been complied with.

 

(e)   Investment Company Act.  The Purchaser is not and, after giving effect to the transactions contemplated in this Confirmation, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.

 

(f)   Commodity Exchange Act. The Purchaser is an “eligible contract participant”, as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended.

 

Section 5.03 .  Additional Representations, Warranties and Agreements.  The Purchaser and the Seller represent and warrant to, and agree with, each other that:

 

(a)   Agency.  Each party agrees and acknowledges that (i) J.P. Morgan Securities LLC, an affiliate of the Seller (“JPMS”), has acted solely as agent and not as principal with respect to this Transaction and (ii) JPMS has no obligation or liability, by way of guaranty, endorsement or otherwise, in any manner in respect of this Transaction (including, if applicable, in respect of the settlement thereof).  Each party agrees it will look solely to the other party (or any guarantor in respect thereof) for performance of such other party’s obligations under this Transaction. JPMS is authorized to act as agent for the Seller.

 

 

10

 

 

(b)   Non-Reliance. Each party has entered into this Transaction solely in reliance on its own judgment.  Neither party has any fiduciary obligation to the other party relating to this Transaction.  In addition, neither party has held itself out as advising, or has held out any of its employees or agents as having the authority to advise, the other party as to whether or not the other party should enter into this Transaction, any subsequent actions relating to this Transaction or any other matters relating to this Transaction.  Neither party shall have any responsibility or liability whatsoever in respect of any advice of this nature given, or views expressed, by it or any such persons to the other party relating to this Transaction, whether or not such advice is given or such views are expressed at the request of the other party.  The Purchaser has conducted its own analysis of the legal, accounting, tax and other implications of this Transaction and consulted such advisors, accountants and counsel as it has deemed necessary.

 

Section 5.04 .  Representations and Warranties of the Seller.  The Seller represents and warrants to the Purchaser that:

 

(a)   Due Authorization.  This Confirmation has been duly authorized, executed and delivered by the Seller and (assuming due authorization, execution and delivery thereof by the Purchaser) constitutes a valid and legally binding obligation of the Seller. The Seller has all corporate power to enter into this Confirmation and to consummate the transactions contemplated hereby and to deliver the Common Stock in accordance with the terms hereof.

 

(b)   Right to Transfer.  The Seller will, at the Initial Settlement Date and on any other day on which it is required to deliver shares of Common Stock to the Purchaser hereunder, have the free and unqualified right to transfer the Number of Shares of Common Stock to be delivered by the Seller pursuant to Sections 2.01 and 3.01 hereof, free and clear of any security interest, mortgage, pledge, lien, charge, claim, equity or encumbrance of any kind.

 

(c)   Commodity Exchange Act. The Seller is an “eligible contract participant”, as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended.

 

 

ARTICLE 6

Additional Covenants

 

Section 6.01 .  Purchaser’s Further Assurances.  The Purchaser hereby agrees with the Seller that the Purchaser shall cooperate with the Seller, and execute and deliver, or use its best efforts to cause to be executed and delivered, all such other instruments, and to obtain all consents, approvals or authorizations of any person, and take all such other actions as the Seller may reasonably request from time to time, consistent with the terms of this Confirmation, in order to effectuate the purposes of this Confirmation and the Transaction contemplated hereby.

 

Section 6.02 .  Purchaser’s Hedging Transactions.  The Purchaser hereby agrees with the Seller that the Purchaser shall not, during the Contract Period, enter into or alter any corresponding or hedging transaction or position with respect to the Common Stock (including, without limitation, with respect to any securities convertible or exchangeable into the Common Stock) and agrees not to alter or deviate from the terms of this Confirmation during the Contract Period.  For the avoidance of doubt, the parties hereto acknowledge that the trades consummated pursuant to the Master Confirmation and the Supplemental Confirmation, each dated March 18, 2011, between Bank of America and the Central Hudson Gas & Electric Corporation and any Pricing Confirmation related thereto do not fall within the ambit of the previous sentence.

 

Section 6.03 .  No Communications.  The Purchaser hereby agrees with the Seller that the Purchaser shall not, directly or indirectly, communicate any information relating to the Common Stock or this Transaction (including any notices required by Section 6.05) to any employee of the Seller or J.P. Morgan Securities LLC, other than as set forth in the Communications Procedures attached as Annex C hereto.

 

Section 6.04 .  Maximum Deliverable Number of Shares of Common Stock. (a) Notwithstanding any other provision of this Confirmation, the Purchaser shall not be required to deliver Settlement Shares, or shares of Common Stock or other securities comprising the aggregate Alternative Termination Delivery Units, in excess of the Purchaser Share Cap, in each case except to the extent that the Purchaser has available at such time authorized but unissued shares of such Common Stock or other securities not expressly reserved for any other uses (including, without limitation, shares of Common Stock reserved for issuance upon the exercise of options or convertible debt).  The Purchaser shall not permit the sum of (i) the Purchaser Share Cap plus (ii) the aggregate number of shares expressly reserved for any such other uses, in each case whether expressed as caps or as numbers of shares reserved or otherwise, to exceed at any time the number of authorized but unissued shares of Common Stock.

 

 

11

 

 

(b)           Notwithstanding any other provision of this Confirmation, the Seller shall not be required to deliver Settlement Shares, or shares of Common Stock or other securities comprising the aggregate Alternative Termination Delivery Units, in excess of the Seller Share Cap.

 

Section 6.05 .  Notice of Certain Transactions.  If at any time during the Contract Period, the Purchaser makes, or expects to be made, or has made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to the Purchaser (other than any such transaction in which the consideration consists solely of cash and there is no valuation period, or as to which the completion of such transaction or the completion of the vote by target shareholders has occurred), then the Purchaser shall (i) notify the Seller prior to the opening of trading in the Common Stock on any day on which the Purchaser makes, or expects to be made, or has made any such public announcement, (ii) notify the Seller promptly following any such announcement (or, if later, prior to the opening of trading in the Common Stock on the first day of any Seller Termination Share Payment Period) that such announcement has been made and (iii) promptly deliver to the Seller following the making of any such announcement (or, if later, prior to the opening of trading in the Common Stock on the first day of any Seller Termination Share Payment Period) a certificate indicating (A) the Purchaser’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of such announcement and (B) the Purchaser’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of such announcement.  In addition, the Purchaser shall promptly notify the Seller of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders.  Accordingly, the Purchaser acknowledges that its actions in relation to any such announcement or transaction must comply with the standards set forth in Section 6.03.

 

Section 6.06 .  Delivery or Receipt of Cash. For the avoidance of doubt, other than payment of the Purchase Price by the Purchaser, nothing in this Confirmation shall be interpreted as requiring the Purchaser to cash settle this Transaction, except in circumstances where cash settlement is within the Purchaser’s control (including, without limitation, where the Purchaser elects to deliver or receive cash, where the Purchaser fails timely to elect to deliver Settlement Shares or to deliver or receive Alternative Termination Delivery Units, or where the Purchaser has made Private Placement settlement in accordance with Annex A unavailable due to the occurrence of events within its control ) or in those circumstances in which holders of the Common Stock would also receive cash.

 

 

ARTICLE 7

Termination

 

Section 7.01 .  Additional Termination Events.  (a) An Additional Termination Event shall occur in respect of which the Purchaser is the sole Affected Party and this Transaction is the sole Affected Transaction if, on any day, the Seller determines, in its sole reasonable judgment, that it is unable to establish, re-establish or maintain any hedging transactions reasonably necessary in the normal course of such party’s business of hedging the price and market risk of entering into and performing under this Transaction, due to market illiquidity, illegality or lack of availability of hedging transaction market participants.

 

(b)   An Additional Termination Event shall occur in respect of which the Purchaser is the sole Affected Party and this Transaction is the sole Affected Transaction if (i) a Share De-listing Event occurs; (ii) a Merger Event occurs; (iii) a Nationalization occurs, (iv) a Distribution Termination Event occurs or (v) an event described in paragraph III of Annex C occurs.

 

(c)   A “Share De-listing Event” means that at any time during the Contract Period, the Common Stock ceases to be listed, traded or publicly quoted on the Exchange for any reason (other than a Merger Event, a “De-Listing”) and is not immediately re-listed, traded or quoted as of the date of such de-listing, on another U.S. national securities exchange or a U.S. automated interdealer quotation system (a “Successor Exchange”); provided that it shall not constitute an Additional Termination Event if the Common Stock is immediately re-listed on a Successor Exchange upon its De-Listing from the Exchange, and the Successor Exchange shall be deemed to be the Exchange for all purposes.  In addition, in such event, the Seller shall make any commercially reasonable adjustments it deems necessary to the terms of the Transaction.

 

 

12

 

 

(d)   A “Merger Event” means the public announcement, including any public announcement as defined in Rule 165(f) of the Securities Act (by the Purchaser or otherwise) at any time during the Contract Period of any (i) planned recapitalization, reclassification or change of the Common Stock that will, if consummated, result in a transfer of more than 20% of the outstanding shares of Common Stock, (ii) planned consolidation, amalgamation, merger or similar transaction of the Purchaser with or into another entity (other than a consolidation, amalgamation or merger in which the Purchaser will be the continuing entity and which does not result in any such recapitalization, reclassification or change of more than 20% of such shares outstanding), (iii) other takeover offer for the shares of Common Stock that is aimed at resulting in a transfer of more than 20% of such shares of Common Stock (other than such shares owned or controlled by the offeror) or (iv) irrevocable commitment to any of the foregoing.

 

(e)   A “Nationalization” means that all or substantially all of the outstanding shares of Common Stock or assets of the Purchaser are nationalized, expropriated or are otherwise required to be transferred to any governmental agency, authority or entity.

 

(f)   A “Distribution Termination Event” means a declaration by the Purchaser of any cash dividend or distribution on shares of Common Stock, other than an Extraordinary Cash Dividend (a “Cash Distribution”), that has a record date during the Contract Period, the amount of which, together with all prior declared Cash Distributions that have a record date during the same Reference Period of the Purchaser, exceeds the Cash Distribution Amount specified in the Pricing Supplement for such Reference Period, and in respect of which the Calculation Agent has not made an adjustment pursuant to Section 8.01(b).

 

Section 7.02 .  Consequences of Additional Termination Events.  (a) In the event of the occurrence or effective designation of an Early Termination Date under the Agreement, cash settlement, as set forth in Section 7.02(b), shall apply unless (i) the Purchaser elects (which election shall be binding), in lieu of payment of the amount payable in respect of this Transaction pursuant to Section 6(d)(ii) of the Agreement (the “Termination Amount”), to deliver or to receive Alternative Termination Delivery Units pursuant to Section 7.03, and (ii) notifies the Seller of such election by delivery of written notice to the Seller on the Business Day immediately following the Purchaser’s receipt of a notice (as required by Section 6(d) of the Agreement following the designation of an Early Termination Date in respect of this Transaction) setting forth the amounts payable by the Purchaser or by the Seller with respect to such Early Termination Date (the date of such delivery, the “Default Notice Day”); provided that the Purchaser shall not have the right to elect the delivery or receipt of the Alternative Termination Delivery Units pursuant to Section 7.03 if:

 

(i) the representations and warranties made by the Purchaser to the Seller in Section 5.01 are not true and correct as of the date the Purchaser  makes such election, as if made on such date, or

 

(ii) in the event that the Termination Amount is payable by the Purchaser to the Seller, (A) the Purchaser has taken any action that would make unavailable (x) the exemption set forth in Section 4(2) of the Securities Act, for the sale of any Alternative Termination Delivery Units by the Purchaser to the Seller or (y) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Alternative Termination Delivery Units by the Seller, and (B) such Early Termination Date is in respect of an Event of Default which is within Purchaser’s control (including, without limitation, failure to execute a Private Placement Agreement or otherwise comply with the requirements applicable to Purchaser set forth in Annex A hereto).

 

For the avoidance of doubt, upon the Purchaser’s making an election to deliver Alternative Termination Delivery Units pursuant to this Section 7.02, the Purchaser shall be deemed to make the representations and warranties in Section 5.01 hereof as if made on the date of the Purchaser’s election.  Notwithstanding the foregoing, at any time prior to the time the Seller (or any affiliate of the Seller) has contracted to resell the property to be delivered upon alternative termination settlement, the Purchaser may deliver in lieu of such property an amount in cash equal to the Termination Amount in the manner set forth in Section 6(d) of the Agreement.

 

 

13

 

 

(b)   If cash settlement applies in respect of an Early Termination Date, Section 6 of the Agreement shall apply.

 

Section 7.03 .  Alternative Termination Settlement.  (a) Subject to Section 7.02, if the Termination Amount shall be payable by the Purchaser to the Seller and the Purchaser elects to deliver the Alternative Termination Delivery Units to the Seller, the Purchaser shall, as soon as directed by the Seller after the Default Notice Day (such date, the “Termination Settlement Date”), deliver to the Seller a number of Alternative Termination Delivery Units equal to the quotient of (A) the Termination Amount divided by (B) the Termination Price.

 

(b)   Subject to Section 7.02, if the Termination Amount shall be payable by the Seller to the Purchaser and the Purchaser elects to receive the Alternative Termination Delivery Units from the Seller, (i) the Seller shall, beginning on the first Trading Day following the Default Notice Day and ending when the Seller shall have satisfied its obligations under this clause (the “Seller Termination Share Purchase Period”), purchase (subject to the provisions of Section 4.01 and Section 4.02 hereof) a number of Alternative Termination Delivery Units equal to the quotient of (A) the Termination Amount divided by (B) the Termination Price; and (ii) the Seller shall deliver such Alternative Termination Delivery Units to the Purchaser on the settlement dates relating to such purchases.

 

Section 7.04 .  Notice of Default.  If an Event of Default occurs in respect of the Purchaser, the Purchaser will, promptly upon becoming aware of it, notify the Seller specifying the nature of such Event of Default.

 

 

ARTICLE 8

Adjustments

 

Section 8.01 .  Cash Dividends.  (a) If the Purchaser declares any Extraordinary Cash Dividend that has a record date during the Contract Period, then prior to or on the date on which such Extraordinary Cash Dividend is paid by the Purchaser to holders of record, the Purchaser shall pay to the Seller an amount in cash equal to the product of (i) the amount of such Extraordinary Cash Dividend and (ii) the theoretical short delta number of shares as of the opening of business on the related ex-dividend date, as determined by the Calculation Agent, required for the Seller to hedge its exposure to the Transaction.

 

(b)           If the Purchaser declares any cash dividend on shares of Common Stock that is not an Extraordinary Cash Dividend (an “Ordinary Cash Dividend”) and that has a record date during the Contract Period, and the amount of such Ordinary Cash Dividend, together with all prior declared Ordinary Cash Dividends that have a record date during the same Reference Period, exceeds the Cash Distribution Amount specified in the Pricing Supplement for such Reference Period, the Calculation Agent may make corresponding adjustments with respect to the Floor Price as the Calculation Agent determines appropriate to preserve the fair value of the Transaction to the Seller, and shall determine the effective date of such adjustment.

 

Section 8.02 .  Other Dilution Adjustments.  If (x) any corporate event occurs having a dilutive or concentrative effect on the theoretical value of the Common Stock (other than any cash dividend but including, without limitation, a spin-off, a stock split, stock or other dividend or distribution, reorganization, rights offering or recapitalization), or (y) as a result of the definition of Trading Day (whether because of a suspension of transactions pursuant to Section 4.02 or otherwise), any day that would otherwise be a Trading Day during the Contract Period is not a Trading Day or on such Trading Day, pursuant to Section 4.02, the Seller effects transactions with respect to shares of Common Stock at a volume lower than originally anticipated with respect to this Transaction, or (z) as a result of market conditions, the Seller incurs additional costs in connection with maintaining its hedge position with respect to this Transaction resulting from the insufficient availability of stock lenders willing and able to lend shares of Common Stock with a borrow cost not significantly greater than the cost as of the date hereof and otherwise on terms consistent with those as of the date hereof, then in any such case, the Calculation Agent shall make corresponding adjustments with respect to any variable relevant to the terms of the Transaction, as the Calculation Agent determines appropriate to preserve the fair value of the Transaction to the Seller, and shall determine the effective date of such adjustment.  The Seller shall give the Purchaser written notice of any such adjustment.

 

 

14

 

 

ARTICLE 9

Miscellaneous

 

Section 9.01 .  Successors and Assigns.  All covenants and agreements in this Confirmation made by or on behalf of either of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not.

 

Section 9.02 .  Purchaser Indemnification.  The Purchaser (the “Indemnifying Party”) agrees to indemnify and hold harmless the Seller and its officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses, claims, damages and liabilities, joint or several (collectively, “Obligations”), to which an Indemnified Person may become subject arising out of or in connection with this Confirmation or any claim, litigation, investigation or proceeding relating thereto, regardless of whether any of such Indemnified Person is a party thereto, and to reimburse, within 30 days, upon written request, each such Indemnified Person for any reasonable legal or other expenses incurred in connection with investigating, preparation for, providing evidence for or defending any of the foregoing, provided, however, that the Indemnifying Party shall not have any liability to any Indemnified Person to the extent that such Obligations (i) are finally determined by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person (and in such case, such Indemnified Person shall promptly return to the Indemnifying Party any amounts previously expended by the Indemnifying Party hereunder) or (ii) are trading losses incurred by the Seller as part of its purchases or sales of shares of Common Stock pursuant to this Confirmation (unless the Purchaser has breached any agreement, term or covenant herein).

 

Section 9.03 .  Assignment and Transfer.  Notwithstanding the Agreement, the Seller may assign any of its rights or duties hereunder to any one or more of its affiliates without the prior written consent of the Purchaser; provided, that the Seller shall give the Purchaser written notice of any such assignment. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Seller to purchase, sell, receive or deliver any shares of Common Stock or other securities to or from the Purchaser, Seller may designate any of its affiliates to purchase, sell, receive or deliver such shares of Common Stock or other securities and otherwise to perform the Seller’s obligations in respect of this Transaction and any such designee may assume such obligations.  The Seller may assign the right to receive Settlement Shares to any third party who may legally receive Settlement Shares. The Seller shall be discharged of its obligations to the Purchaser only to the extent of any such performance.  For the avoidance of doubt, Seller hereby acknowledges that notwithstanding any such designation hereunder, to the extent any of Seller’s obligations in respect of this Transaction are not completed by its designee, Seller shall be obligated to continue to perform or to cause any other of its designees to perform in respect of such obligations.

 

Section 9.04 .  Calculation Agent.  Whenever the Calculation Agent is required to act or to exercise judgment in any way with respect to this Transaction, it will do so in good faith and in a commercially reasonable manner.

 

Section 9.05 .  Non-confidentiality.  The Seller and the Purchaser hereby acknowledge and agree that, subject to Section 6.03, each is authorized to disclose every aspect of this Confirmation and the transactions contemplated hereby to any and all persons, without limitation of any kind, and there are no express or implied agreements, arrangements or understandings to the contrary.

 

Section 9.06 .  Unenforceability and Invalidity.  To the extent permitted by law, the unenforceability or invalidity of any provision or provisions of this Confirmation shall not render any other provision or provisions herein contained unenforceable or invalid.

 

Section 9.07 .  Securities Contract.  The parties hereto agree and acknowledge as of the date hereof that (i) the Seller is a “financial institution” within the meaning of Section 101(22) of Title 11 of the United States Code (the “Bankruptcy Code”) and (ii) this Confirmation is a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, entitled to the protection of Sections 362(b)(6) and 555 of the Bankruptcy Code.

 

Section 9.08 .  No Collateral, Netting or Setoff.  Notwithstanding any provision of the Agreement, or any other agreement between the parties, to the contrary, the obligations of the Purchaser hereunder are not secured by any collateral.  Obligations under this Transaction shall not be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against any other obligations of the parties, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against obligations under this Transaction, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff, netting or recoupment.

 

 

15

 

 

Section 9.09 .  Notices.  Unless otherwise specified herein, any notice, the delivery of which is expressly provided for in this Confirmation, may be made by telephone, to be confirmed in writing to the address below.  Changes to the information below must be made in writing.

 

(a) If to the Purchaser:

 

CH Energy Group, Inc.

284 South Avenue

Poughkeepsie, New York 12601-4839

Attention:  Michael Manhardt

Title:  Director of Treasury Services

Telephone No:  (845) 486-5319

Facsimile No:   (845) 486-5894

Email: mmanhardt@cenhud.com

 

(b) If to the Seller:

 

JPMorgan Chase Bank, National Association

c/o J.P. Morgan Securities LLC

EDG Marketing Support

Email: EDG_OTC_HEDGING_MS@jpmorgan.com

Fax: 1-866-886-4506

 

With a copy to:

 

Tim Oeljeschlager

Vice President

Equity-linked Capital Markets

383 Madison Avenue, Floor 28

New York, NY, 10179, United States

Telephone No: (212) 622-5603

Facsimile No: (212) 917-464-3163

Email: tim.oeljeschlager@jpmorgan.com

 

 

16

 

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us.

 

	
Yours sincerely,

	
J.P. MORGAN SECURITIES LLC, as agent for JPMorgan Chase Bank, National Association, London Branch

 

	  
	
By:

	/s/ Tim Oeljeschlager  
	
Name: Tim Oeljeschlager

	
Title: Vice President

Confirmed as of the date first

above written:

 

	
CH ENERGY GROUP, INC.

 

	
By:

	/s/ Christopher Capone
	
Name: Christopher Capone

	
Title: Executive Vice President and Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association.

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746.

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

 

 

 

 

ANNEX A

 

PRIVATE PLACEMENT PROCEDURES

 

I.           Introduction

 

CH Energy Group, Inc., a New York corporation (the “Purchaser”) and J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch (the “Seller”) have agreed to these procedures (the “Private Placement Procedures”) in connection with entering into the Confirmation (the “Confirmation”) dated as of August 16, 2011 between JPMorgan and the Purchaser relating to the sale by JPMorgan to the Purchaser of common stock, par value $0.10 per share, or security entitlements in respect thereof (the “Common Stock”) of the Purchaser.  These Private Placement Procedures supplement, form part of, and are subject to the Confirmation and all terms used and not otherwise defined herein shall have the meanings assigned to them in the Confirmation.

 

II.           Procedures

 

If the Purchaser elects to deliver Private Placement Shares pursuant to Section 3.01(b) of the Confirmation or elects to deliver Alternative Termination Delivery Units pursuant to Section 7.02 of the Confirmation, the Purchaser shall effect such delivery in compliance with the private placement procedures provided herein.

 

(a)           The Purchaser shall afford the Seller, and any potential buyers of the Private Placement Shares (or, in the case of alternative termination settlement, Alternative Termination Delivery Units) (collectively, the “Private Securities”) designated by the Seller a reasonable opportunity to conduct a due diligence investigation with respect to the Purchaser customary in scope for private offerings of such type of securities (including, without limitation, the availability of senior management to respond to questions regarding the business and financial condition of the Purchaser and the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them), and the Seller (or any such potential buyer) shall be satisfied in all material respects with such opportunity and with the resolution of any disclosure issues arising from such due diligence investigation of the Purchaser.

 

(b)           Prior to or contemporaneously with the determination of the Private Placement Price (as described below), the Purchaser shall enter into an agreement (a “Private Placement Agreement”) with the Seller (or any affiliate of the Seller designated by the Seller) providing for the purchase and resale by the Seller (or such affiliate) in a private placement (or other transaction exempt from registration under the Securities Act) of the Private Securities, which agreement shall be on commercially reasonable terms and in form and substance reasonably satisfactory to the Seller (or such affiliate) and (without limitation of the foregoing) shall:

 

(i)           contain customary conditions, and customary undertakings, representations and warranties (to and by the Seller or such affiliate, and if requested by the Seller or such affiliate, to and by potential purchasers of the Private Securities);

 

(ii)           contain indemnification and contribution provisions (and customary exceptions thereto) in connection with the potential liability of the Seller and its affiliates relating to the resale by the Seller (or such affiliate) of the Private Securities;

 

(iii)           provide for the delivery of related customary certificates and representations, warranties and agreements of the Purchaser and the Seller (or such affiliate), including those necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for the Seller and resales of the Private Securities by the Seller (or such affiliate); and

 

  

A-1

  

 

(iv)           provide for the delivery to the Seller (or such affiliate) of customary opinions (including, without limitation, opinions relating to the due authorization, valid issuance and fully paid and non-assessable nature of the Private Securities, the availability of an exemption from the Securities Act for the Seller and resales of the Private Securities by the Seller (or such affiliate), and the lack of material misstatements and omissions in the Purchaser’s filings under the Exchange Act).

 

(c)           The Seller shall determine the Private Placement Price (or, in the case of alternative termination settlement, the Termination Price) in its judgment by commercially reasonable means, which may include (without limitation):

 

(i)           basing such price on indicative bids from investors;

 

(ii)           taking into account any factors that are customary in pricing private sales and any and all risks and costs in connection with the resale of the Private Securities by the Seller (or any affiliate of the Seller designated by the Seller), including, without limitation, a reasonable placement fee or spread to be retained by the Seller (or such affiliate); and

 

(iii)           providing for the payment by the Purchaser of all reasonable fees and expenses in connection with such sale and resale, including all reasonable fees and expenses of counsel for the Seller or such affiliate.

 

(d)           The Seller shall notify the Purchaser of the number of Private Securities required to be delivered by the Purchaser and the Private Placement Price (or, in the case of alternative termination settlement, the Termination Price) by 6:00 p.m. on the day such price is determined.

 

(e)           The Purchaser agrees not to take or cause to be taken any action that would make unavailable either (i) the exemption set forth in Section 4(2) of the Securities Act, for the sale of any Private Securities by the Purchaser to the Seller or (ii) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Private Securities by the Seller.

 

(f)           The Purchaser expressly agrees and acknowledges that the public disclosure of all material information relating to the Purchaser is within the Purchaser’s control and that the Purchaser shall promptly so disclose all such material information during the period from the Valuation Completion Date to and including the Settlement Date.

 

The Purchaser agrees to use its best efforts to make any filings required to be made by it with the SEC, any securities exchange or any other regulatory body with respect to the Transaction contemplated hereby and the issuance of the Private Securities.

 

  

A-2

  

 

 

ANNEX B

 

REGISTRATION PROCEDURES

 

I.           Introduction

 

CH Energy Group, Inc., a New York corporation (the “Purchaser”) and J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch (the “Seller”) have agreed to these procedures (the “Registration Procedures”) in connection with entering into the Confirmation (the “Confirmation”) dated as of August 16, 2011 between JPMorgan and the Purchaser relating to the sale by JPMorgan to the Purchaser of common stock, par value $0.10 per share, or security entitlements in respect thereof (the “Common Stock”) of the Counterparty.  These Registration Procedures supplement, form part of, and are subject to the Confirmation and all terms used and not otherwise defined herein shall have the meanings assigned to them in the Confirmation.

 

II.           Procedures

 

If the Purchaser elects to deliver Registered Shares pursuant to Section 3.01(b) of the Confirmation, the Purchaser shall effect such delivery in compliance with the registration procedures provided herein.

 

(a)           The Purchaser shall take all actions within its control to make available to the Seller and its affiliates an effective primary registration statement under the Securities Act and one or more prospectuses as necessary or advisable to allow the Seller and its affiliates to comply with the applicable prospectus delivery requirements (the “Prospectus”) for the sale by Seller or its affiliates of the Registered Shares to be delivered by the Purchaser pursuant to the Confirmation (the “Registration Statement”), such Registration Statement to be effective and Prospectus to be current until all such sales by the Seller (or its affiliates) have been settled.  The Purchaser shall take all actions reasonably requested by the Seller to facilitate the disposition of any Registered Shares to be sold pursuant to such Registration Statement.

 

(b)           The Purchaser shall use commercially reasonable efforts to prevent the issuance of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of any Prospectus and, if any such order is issued, to obtain the lifting thereof as soon thereafter as is reasonably possible.  If the Registration Statement, the Prospectus or any document incorporated therein by reference contains a misstatement of a material fact or omits to state a material fact required to be stated therein or necessary to make any statement therein not misleading, the Purchaser shall as promptly as reasonably practicable file any required document and prepare and furnish to the Seller a reasonable number of copies of such supplement or amendment thereto as may be necessary so that the Prospectus, as thereafter delivered to the purchasers in connection with sales of Registered Shares thereunder, will not contain any misstatement of a material fact or omit to state a material fact required to be stated therein or necessary to make any statement therein not misleading.

 

(c)           The Purchaser shall afford the Seller (and its agents and affiliates) a reasonable opportunity to conduct a due diligence investigation with respect to the Purchaser customary in scope for registered offerings of such type of securities (including, without limitation, the availability of senior management and external advisors to respond to questions regarding the business and financial condition of the Purchaser and the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them), and such opportunity and the resolution of any disclosure issues arising from such due diligence investigation of the Purchaser shall be satisfactory to Seller in all material respects.  The Purchaser shall reimburse the Seller for all reasonable out-of-pocket expenses it incurs in connection with such diligence and otherwise in connection with the preparation of the Registration Statement and Prospectus, including, without limitation, the reasonable fees and expenses of outside counsel to the Seller incurred in connection therewith.

 

  

B-1

  

 

(d)           The Purchaser shall enter into an agreement (a “Registration Agreement”) with the Seller (or any affiliate of the Seller designated by the Seller) providing for the registration of the Registered Shares, which agreement shall be on commercially reasonable terms and in form and substance reasonably satisfactory to the Seller (or such affiliate) and (without limitation of the foregoing) shall:

 

(i)           contain customary conditions, and customary undertakings, representations and warranties (to and by the Seller or such affiliate);

 

(ii)           contain indemnification and contribution provisions (and customary exceptions thereto) in connection with the potential liability of the Seller and its affiliates relating to the sale by the Seller (or such affiliate) of the Registered Shares;

 

(iii)           provide for the delivery of related customary certificates and representations, warranties and agreements of the Purchaser and the Seller (or such affiliate);

 

(iv)           provide for the delivery of accountants’ “comfort letters” to the Seller in form and substance satisfactory to the Seller, containing statements and information of the type customarily included in such letters to “underwriters” with respect to the financial statements and certain financial information contained, or incorporated by reference, in the Registration Statement and the Prospectus; and

 

(v)           provide for the delivery to the Seller (or such affiliate) of customary opinions, including, without limitation, opinions relating to the due authorization, valid issuance and fully paid and non-assessable nature of the Registered Shares and the lack of material misstatements and omissions in the Registration Statement (including any documents incorporated by reference therein).

 

(e)           The Seller shall notify the Purchaser of the numbers of Registered Shares to be delivered by the Purchaser on the Settlement Dates, as necessary in light of the Seller’s unwinding of its hedge positions in connection with the Transaction and sales of Registered Shares in accordance with these Registration Procedures, and the Purchaser shall deliver such Shares to the Seller on such Settlement Dates in accordance with the Seller’s customary procedures.  The parties understand and acknowledge that (i) the Seller or its affiliates expect to make contemporaneous or nearly contemporaneous (A) purchases of Common Stock to unwind its hedge and (B) sales of Registered Shares in accordance with these Registration Procedures, (ii) the Seller or its affiliates intend to make such sales of Registered Shares in a manner that is not a distribution for purposes of Regulation M, and (iii) accordingly, the length of the period during which the Seller or its affiliates make such purchases and sales will depend in part on prevailing trading volumes for the Common Stock.

 

(f)           In the event that (i) the Purchaser fails to comply with the requirements set forth in this Annex B, (ii) the Registration Statement is not effective on or prior to the date that is 30 days after the Valuation Completion Date, or fails to remain effective until all Registered Shares have been sold hereunder, (iii) the opportunity to conduct a due diligence investigation with respect to the Purchaser and the resolution of any issues arising therefrom is not satisfactory to Seller and its affiliates in all material respects, or does not continue to be satisfactory to the Seller and its affiliates in all material respects until all Registered Shares have been sold hereunder, (iv) the Seller or its affiliates are not able to make sales of Registered Shares in a manner that permits the contemporaneous or nearly contemporaneous purchase by the Seller or its affiliates of Common Stock in accordance with Regulation M or (v) the Registration Procedures otherwise become unavailable for the sale by the Seller and its affiliates of the Registered Shares delivered by the Purchaser hereunder prior to the completion of the sale thereof, then in any such event, the provisions of Section 3.01(d) of the Confirmation providing for cash settlement with respect to any unsold Registered Shares shall apply, appropriately modified to take into account any Registered Shares theretofore delivered and sold pursuant to these Registration Procedures.

 

  

B-2

  

 

 

ANNEX C

 

COMMUNICATIONS PROCEDURES

 

August 16, 2011

 

I.           Introduction

 

CH Energy Group, Inc., a New York corporation (“Counterparty”) and J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch (“JPMorgan”) have adopted these communications procedures (the “Communications Procedures”) in connection with entering into the Confirmation (the “Confirmation”) dated as of August 16, 2011 between JPMorgan and Counterparty relating to the sale by JPMorgan to Counterparty of common stock, par value $0.10 per share, or security entitlements in respect thereof (the “Common Stock”) of the Counterparty.  These Communications Procedures supplement, form part of, and are subject to the Confirmation.

 

II.           Communications Rules

 

From the date hereof until the end of the Contract Period, Counterparty and its Employees and Designees shall not engage in any Program-Related Communication with, or disclose any Material Non-Public Information to, any EDG Trading Personnel.  Except as set forth in the preceding sentence, the Confirmation shall not limit Counterparty and its Employees and Designees in their communication with Affiliates and Employees of JPMorgan, including without limitation Employees who are EDG Permitted Contacts.

 

III.           Termination

 

If, in the sole judgment of any EDG Trading Personnel or any affiliate or Employee of JPMorgan participating in any Communication with Counterparty or any Employee or Designee of Counterparty, such Communication would not be permitted by these Communications Procedures, such EDG Trading Personnel or affiliate or Employee of JPMorgan shall immediately terminate such Communication.  In such case, or if such EDG Trading Personnel or affiliate or Employee of JPMorgan determines following completion of any Communication with Counterparty or any Employee or Designee of Counterparty that such Communication was not permitted by these Communications Procedures, such EDG Trading Personnel or such affiliate or Employee of JPMorgan shall promptly consult with his or her supervisors and with counsel for JPMorgan regarding such Communication.  If, in the reasonable judgment of JPMorgan’s counsel following such consultation, there is more than an insignificant risk that such Communication could materially jeopardize the availability of the affirmative defenses provided in Rule 10b5-1 under the Exchange Act with respect to any ongoing or contemplated activities of JPMorgan or its affiliates in respect of the Confirmation, it shall be an Additional Termination Event with respect to the Confirmation.

 

IV.           Definitions

 

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Confirmation.  As used herein, the following words and phrases shall have the following meanings:

 

“Communication” means any contact or communication (whether written, electronic, oral or otherwise) between Counterparty or any of its Employees or Designees, on the one hand, and JPMorgan or any of its affiliates or Employees, on the other hand.

 

“Designee” means a person designated, in writing or orally, by Counterparty to communicate with JPMorgan on behalf of Counterparty.

 

  

C-1

  

 

“EDG Permitted Contact” means any of Mr. David Aidelson, Mr. Gregory Batista, Mr. Elliot Chalom, Mr. Tim Oeljeschlager, Mr. James Rothschild, Mr. David Seaman and Mr. Jeffrey J. Zajkowski or any of their designees; provided that JPMorgan may amend the list of EDG Permitted Contacts by delivering a revised list of EDG Permitted Contacts to Counterparty.

 

“EDG Trading Personnel” means Graham Orton, Michael Tatro and any other Employee of the public side of the Equity Derivatives Group or the Special Equities Group of J.P. Morgan Chase & Co.; provided that JPMorgan may amend the list of EDG Trading Personnel by delivering a revised list of EDG Trading Personnel to Counterparty; and provided further that, for the avoidance of doubt, the persons listed as EDG Permitted Contacts are not EDG Trading Personnel.

 

“Employee” means, with respect to any entity, any owner, principal, officer, director, employee or other agent or representative of such entity, and any affiliate of any of such owner, principal, officer, director, employee, agent or representative.

 

“Material Non-Public Information” means information relating to the Counterparty or the Common Stock that (a) has not been widely disseminated by wire service, in one or more newspapers of general circulation, by communication from the Counterparty to its shareholders or in a press release, or contained in a public filing made by the Counterparty with the Securities and Exchange Commission and (b) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold shares of Common Stock.  For the avoidance of doubt and solely by way of illustration, information should be presumed “material” if it relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, a significant increase or decline of orders, significant merger or acquisition proposals or agreements, significant new products or discoveries, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale of substantial assets and similar matters.

 

“Program-Related Communication” means any Communication the subject matter of which relates to the Confirmation or any Transaction under the Confirmation or any activities of JPMorgan (or any of its affiliates) in respect of the Confirmation or any Transaction under the Confirmation.

 

  

C-2

  

 

 

ANNEX D

PRICING SUPPLEMENT

This Pricing Supplement is subject to the Confirmation dated as of August 16, 2011 (the “Confirmation”) between J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch (the “Seller”), and CH Energy Group, Inc., a New York corporation (the “Purchaser”).  Capitalized terms used herein have the meanings set forth in the Confirmation.

	
1

	
Discount:

	
-$0.21

	
2

	
Initial Delivery Percentage

	
100%

	
3

	
Contract Fee:

	
$0.00

	
4

	
Floor Price:

	
$0.01

	
5

	
Registered Shares Fee:

	
$0.05

	
6

	
Valuation Completion Date:

	
The Trading Day, during the period commencing on and including the 126th Trading Day following the Trade Date and ending on and including the Expiration Date, specified as such by the Seller, in its sole judgment, by delivering a notice designating such Trading Day as a Valuation Completion Date by the close of business on the Business Day immediately following such Trading Day; provided that if the Seller fails to validly designate the Valuation Completion Date prior to the Expiration Date, the Valuation Completion Date shall be the Expiration Date.

	
7

	
Cash Distribution Amount:

	  

	
Cash Distribution Amount

	
Reference Period

	
$0.00 per share of Common Stock

	
Trade Date – October 10, 2011

	
$0.56  per share of Common Stock

	
October 11, 2011 – January 9, 2012

	
$0.56 per share of Common Stock

	
January 10, 2012 – April 2, 2012

	
$0.56 per share of Common Stock

	
The period after April 2, 2012 through and including the last day of the Contract Period.

 

  

D-1

  

EXHIBIT A

 

 

 

JPMorgan Chase Bank, National Association

c/o J.P. Morgan Securities LLC

383 Madison Avenue

5th Floor

New York, New York 10172

 

Re:           Accelerated Purchase of Equity Securities

 

Ladies and Gentlemen:

 

In connection with our entry into the Confirmation dated as of August 16, 2011 (the “Confirmation”), we hereby represent that set forth below is the total number of shares of our common stock purchased by or for us or any of our affiliated purchasers in Rule 10b-18 purchases of blocks (all defined in Rule 10b-18 under the Securities Exchange Act of 1934) pursuant to the once-a-week block exception set forth in Rule 10b-18(b)(4) during the four full calendar weeks immediately preceding the first day of the Valuation Period (as defined in the Confirmation) and the week during which the first day of the Valuation Period occurs.

 

Number of Shares:   0 (none)

 

We understand that you will use this information in calculating trading volume for purposes of Rule 10b-18.

 

	
Very truly yours,

CH ENERGY GROUP, INC.

 

 

 

	
By:

	/s/ Christopher M. Capone
	
Name:  Christopher M. Capone

	
Title:  Chief Financial Officer

 

 

 

 

The CH Energy Group Companies

Central Hudson Gas & Electric Corporation

Central Hudson Enterprises Corporation

 

284 South Avenue Poughkeepsie NY 12601

845-452-2000

www.CHEnergyGroup.com

 

  

Exh-A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]