Document:

TERMINATION & TRANSFER AGREEMENT DATED 04/30/03

 
Exhibit 10.1

 
TERMINATION AND TRANSFER AGREEMENT

 

	 BETWEEN:
 

	  	 AEGERA THERAPEUTICS INC., a corporation incorporated under the laws of Canada, having a place of business at
810 Chemin du Golf, Île-des-Sœurs, Montreal, Québec H3E 1A8, Canada
 (hereinafter referred to as
“Aegera”)
  

	 AND:
	  	 CURIS, INC., a corporation incorporated under the laws of Delaware, having a place of business at 61 Moulton
Street, Cambridge, MA 02138, U.S.A.
 (hereinafter referred to as “Curis”)

 
WHEREAS Aegera
and Curis are parties to a license and collaboration agreement dated as of January 5, 2001, as amended by a letter dated March 20, 2001 (collectively, the “License Agreement”), whereby the parties agreed to cooperate with each other
in order to develop potential therapeutics and diagnostics from stem cell technologies; 
 
WHEREAS Curis has indicated, in a letter dated February 6, 2003, that it has divested itself of its stem cell technology and associated research functions and that it is not likely to make future use of the remaining
Aegera stem cell intellectual property assets; 
 
AND WHEREAS
Aegera and Curis hereby agree to terminate the License Agreement in accordance with the terms and conditions set forth hereinafter; 
 
NOW, THEREFORE, the parties covenant and agree as follows: 
 

	1.	 	DEFINITIONS 

 

	 	1.1	 	“Business” shall mean the business of developing and commercializing therapeutic, prophylactic and diagnostic products from stem cell technologies,
including but not restricted to all research, derivations, amplifications and applications of skin-derived precursor cells (“SKPs”). 

 

	 	1.2	 	“Business Day” means any day of the year, other than a Saturday, Sunday, or any day on which banks are required or authorized to close in Cambridge,
Massachusetts. 

 

	 	1.3	 	“Confidential Information” shall mean all technology, data, materials, products, technical information, commercialization, clinical and research
strategies, know-how and trade secrets falling under the Aegera Technologies, the Aegera or the Curis technologies specified in Section 6.4 of the License Agreement, the McGill Contract and the Collaboration Rights disclosed by one party (the
“Disclosing 

Party”) to the other up to the Termination Date; provided that
“Confidential Information” shall not include (i) information that is or becomes part of the public domain through no fault of the non-Disclosing Party or its Affiliates; (ii) information that is obtained after the date hereof by the
non-Disclosing Party or one of its Affiliates from any Third Party which is lawfully in possession of such Confidential Information and not in violation of any contractual or legal obligation to the Disclosing Party with respect to such Confidential
Information; (iii) information that is known to the non-Disclosing Party or one or more of its Affiliates prior to disclosure by the Disclosing Party, as evidenced by the non-Disclosing Party’s written records; and (iv) information that is
required to be disclosed to any governmental authorities or pursuant to any regulatory filings, but only to the limited extent of such legally required disclosure and only upon providing the right to the non-Disclosing Party to contest such
disclosure in the appropriate legal forum. 
 

	 	1.4	 	“Curis Rights” shall mean any right, title or interest of Curis under the License Agreement with respect to the Aegera Technologies and the
Collaboration Rights (including, without limitation, the Aegera Invented Patent Rights, the Jointly Invented Patent Rights and the Curis Invented Patent Rights). 

 

	 	1.5	 	“Liens” shall mean (i) any and all hypothecs, mortgages, pledges, privileges, liens, security interests, transfers of property in stock, charges,
deposits, servitudes, easements, reserves, conditional sales contracts, ownership or title retention agreements, leases, occupation rights, encroachments, restrictive covenants, title defects and other encumbrances or rights of others of any nature
whatsoever or however arising, (ii) any and all arrangement or condition that in substance secures payment or performance of an obligation, and (iii) any and all actions, claims or demands of any nature whatsoever or howsoever arising.

 

	 	1.6	 	Other capitalized terms contained in this Agreement shall have the same meanings ascribed thereto under the License Agreement. 

 
2.    TERMINATION 
 
Aegera and Curis hereby mutually agree that the License
Agreement shall terminate and be of no further force or effect, and that this Agreement shall become effective, as of the date on which the covenants pursuant to Sections 4 and 5 of this Agreement have been fulfilled or April 30, 2003, whichever is
later (the “Termination Date”). 
 
3.    REVERSION AND ASSIGNMENT OF RIGHTS 
 
3.1    Aegera Technologies 
 
For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Curis
hereby agrees to assign back to Aegera, effective as of the Termination Date, any right which has or may have been licensed to it with respect to the Aegera Technologies, including, but not limited to, the patent applications listed in Schedule 3.1
hereto. 
 

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3.2    Collaboration Rights 
 
For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Curis hereby agrees to assign to Aegera, effective as of the Termination Date, any right, title and interest that it has or
may have in the Collaboration Rights (including the Aegera Invented Patent Rights, the Jointly Invented Patent Rights and the Curis Invented Patent Rights), and assigns back to Aegera any right which may have been licensed to Curis with respect to
the Collaboration Rights. 
 
3.3    Execution of Transfers 
 
Curis shall execute (and require its employees, agents, independent contractors or collaborators to execute) any assignments or other documents necessary to convey and assign to Aegera all of its rights, title and interest
in the Curis Rights in accordance with the provisions of this Agreement. 
 
4.    DESTRUCTION OF PRODUCTS AND DOCUMENTS 
 
Curis has previously provided Aegera with copies, in the form of periodic reports, of any and all data (including profiling data and results on insulin work) and technical information relating to the
Business. to the extent Curis has additional information such as record, notes and materials, including cell lines, related to the Business, under its possession or control (collectively, the “Products and Documents”), Curis shall
destroy the same and shall confirm the same in writing to Aegera . 
 
5.    REMITTANCE OF FUNDS (FOREIGN EXCHANGE GAINS) 
 
Effective as of the Termination Date, Aegera shall pay to Curis the sum of Cdn $114,518.65 in immediately available funds by wire transfer to a bank account specified by Curis, such sum
representing funds generated through foreign exchange gains during the Research Term for the period of June 1, 2001 to July 31, 2002. 
 
6.    REPRESENTATIONS AND WARRANTIES 
 

	 	6.1	 	Each party to this Agreement represents and warrants to the other party that it is a corporation duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation and is duly qualified to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required. 

 

	 	6.2	 	Each party has full corporate power and authority and has taken all requisite corporate or other action to enable it to execute and deliver this Agreement and any
other required documents and to perform its respective obligations hereunder and thereunder. 

 

	 	6.3	 	This Agreement constitutes, and any other required documents executed by a party hereto will constitute, valid and legally obligations of each of them, enforceable
against each of them in accordance with their respective terms and conditions. 

 

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	 	6.4	 	Curis represents and warrants that (i) it has authority to assign to Aegera all of its rights, title and interest in the Curis Rights; (ii) it has exclusive rights
with respect to the Curis Rights (subject to the McGill Rights); (iii) it has not sub-licensed or otherwise granted any rights to any Third Party with respect to the Curis Rights; (iv) it has not permitted to be imposed, or that it is not aware of,
any Liens upon any of the Curis Rights; and (v) to the best of its knowledge there are no claims that the Curis Rights violate the rights of any Third Party. 

 
7.    MUTUAL RELEASE 
 
Each of the parties hereto, on behalf of itself, its respective predecessors, successors and assigns, hereby
agrees to fully and forever release, acquit and discharge the other, for itself, its respective predecessors, successors and assigns, effective as of the Termination Date, from any and all actions, claims and demands which either of the parties may
heretofore have had, may have or may hereafter have, arising out of, related to or in connection with the License Agreement, either directly or indirectly; save and except (i) in respect of any claim, action, demand or damage resulting from a breach
of any representation, warranty or obligation contained in this Agreement. 
 
8.    CONFIDENTIALITY 
 
Curis hereby shall not use, divulge, diffuse, sell, transfer, give, publish, circulate, or otherwise distribute to any Third Party, or otherwise disclose to the public, any Confidential Information, at anytime hereafter
unless with the prior written consent of Aegera. 
 
9.    SURVIVAL OF LICENSE AGREEMENT PROVISIONS 
 
Notwithstanding Section 12.8 or any other provisions of the License Agreement, the parties hereby agree that none of the provisions of the License Agreement shall survive the termination of the License
Agreement. 
 
10.    MISCELLANEOUS

 
10.1    Assignment 
 
This Agreement and any of the rights of any party hereto may not be assigned by any party except with the prior written consent of the other party except to an acquirer of all or substantially all of the capital stock or assets of
either party. 
 
10.2    Counterparts 
 
This Agreement may be executed in any number of counterparts with the same effect as if all parties all signed the same document. All counterparts will be construed together and will constitute one and the same agreement.
This Agreement may be executed by the parties and transmitted by facsimile transmission and if so executed and transmitted this Agreement will be for all purposes as effective as if the parties had delivered and executed one original Agreement.

 

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10.3    Entire Agreement 
 
Except as specifically provided herein, this Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements between the parties relating to the termination of the License Agreement,
whether oral or written. There are not and shall not be any oral statements, representations, warranties, undertakings or agreements between the parties and this Agreement may not be amended or modified in any respect except by written instruments
signed by all of the remaining parties. 
 
10.4    Enurement 
 
This Agreement shall enure to the benefit of and be binding on the respective successors and permitted assigns of each of the parties. 
 
10.5    Further Assurances 
 
The parties shall execute such further assurances and other documents and instruments and do such further
and other things as may be necessary to implement and carry out the intent of this Agreement. 
 
10.6    Notices 
 
Any notice or other document required or permitted to be given to any party hereto shall be validly given if delivered personally or sent by facsimile or prepaid registered mail to any party at the
following address: 
 
(a)    If to Aegera: 
 
Aegera Therapeutics Inc. 
810 Chemin du Golf 
Île-des-Sœurs 
Montreal, Québec H3E 1A8 
Attention : Michael Atkin 
Fax : (514) 288-9280 
 
(b)    If to Curis: 
 
Curis, Inc. 
61 Moulton Street 
Cambridge, MA 02138 
U.S.A. 
Attention :    Daniel R. Passeri 
Fax :
            (617) 492-8287 
 
Any such notice or other document delivered personally shall be deemed to have been received by and given on the date of such delivery (provided that such day is a Business Day and, if not, on the next
following Business Day). Any notice sent by facsimile shall be deemed to have been received on the next Business Day following the day on which it was transmitted. Any notice sent by prepaid registered mail shall be deemed to have been received and
given on the fifth 
 

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Business Day following the date of mailing; provided, however, that if there shall be,
between the time of mailing and the actual date of receipt, a mail strike, slowdown or other labour dispute that might affect the delivery of such notice by mail, then such notice shall only be effective if delivered in person as aforesaid. Any
party may at any time give notice to the other parties of any change of address in accordance with the foregoing provisions hereof. 
 
10.7    Severability 
 
The parties agree that if any covenant or provision of this Agreement is determined by a court of competent jurisdiction to be void or
unenforceable in whole or in part, then such void or unenforceable covenant or provision may be severed from the remainder of this Agreement and such severance shall not affect or impair the enforceability or validity of the balance of the Agreement
or any other covenant or provision. 
 
10.8    Waiver 
 
No provision of this Agreement shall be deemed to be waived unless such waiver is in writing. Any waiver of any default by any party hereto in the observance or the performance of any part of this Agreement shall not extend to or be
taken in any manner to affect any other default. 
 
10.9    Governing Law 
 
The rights and obligations of the parties hereto shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Delaware. 
 
IN WITNESS WHEREOF, the parties have duly executed this Agreement on the 24th of April, 2003. 
 
AEGERA THERAPEUTICS, INC. 
Per: /s/ Michael
Atkin                         
 
CURIS, INC. 
Per: /s/ Daniel R. Passeri 
 

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AEGERA
THERAPEUTICS, INC. 
SCHEDULE 3.1 
 

	 Curis No.

	  	 Serial No.

	  	 Filing Date

	  	 Status

	  	 Title

	 	 Product

	 CUR-120CP5PC
	  	 PCT/CA01/00047
	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP2US
	  	 08/920,272
	  	 08/22/1997
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells

	 CUR-120CP3US
	  	 09/490,422
	  	 01/24/2000
	  	 Abandoned
	  	 Multipotent neural stem cells from peripheral tissues and uses therefor
	 	 Stem Cells

	 CUR-120CP4US
	  	 09/670,049
	  	 09/25/2000
	  	 Pending
	  	 Multipotent neural stem cells from peripheral tissues and uses thereof
	 	 Stem Cells

	 CUR-120 US
	  	 60/024,456
	  	 08/27/1996
	  	 Expired
	  	 Pharmaceuticals containing multipotential precursor cells from olfactory epithelium
	 	 
	 CUR-120CP US
	  	 60/024,590
	  	 08/26/1996
	  	 Expired
	  	 Pharmaceuticals containing multipotential precursor cells from olfactory epithelium
	 	 
	 CUR-120CP2CA
	  	 2,213,780
	  	 08/22/1997
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells

	 CUR-120CP6US
	  	 09/916,639
	  	 07/26/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP7US
	  	 09/991,479
	  	 11/09/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP8US
	  	 09/991,480
	  	 11/09/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP9US
	  	 60/364,718
	  	 03/15/2002
	  	 Pending
	  	 Multipotent Stem Cells from Peripheral Tissues and Uses Thereto
	 	 Stem Cells Cell Therapy

	 CUR-120CP9CUS
	  	 10/099,539
	  	 03/15/2002
	  	 Pending
	  	 Multipotent Stem Cells from Peripheral Tissues and Uses Thereto
	 	 Stem Cells Cell Therapy

	 CUR-120CP5US
	  	 10/181,508
	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP10US
	  	 60/398,680
	  	 07/26/2002
	  	 Pending
	  	 Multipotent Stem Cells from Peripheral Tissues and Uses Thereto
	 	 Stem Cells Cell Therapy

	 CUR-120CP5EP
	  	 	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP5AU
	  	 28216/01
	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP5CA
	  	 	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP5IL
	  	 150789
	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell Therapy

	 CUR-120CP5JP
	  	 2001-553922
	  	 01/24/2001
	  	 Pending
	  	 Pharmaceuticals containing multipotential precursor cells from tissues containing sensory receptors
	 	 Stem Cells Cell TherapyFIRST AMENDMENT OF LOAN AGREEMENT DATED 04/01/03

Exhibit 10.2 
 
April 1, 2003 
 
Curis, Inc. 
61
Moulton Street 
Cambridge, MA 02138 

	Attn:	 	Daniel R. Passeri, President and 

Chief Executive Officer 
 

	         Re:    	 	First Amendment of Loan Agreement 

 
Dear Mr. Passeri: 
 
Reference is made to that certain Loan Agreement dated June 14, 2002 (together with all exhibits thereto, the
“Agreement”) between Curis, Inc. (the “Borrower”) and Boston Private Bank & Trust Company (the “Bank”). The Agreement is being amended to reflect a new financing arrangement between the Bank and
the Borrower, namely, the conversion of the Term Loan (as defined in the Agreement) into a Line of Credit and accordingly, the Term Note (as defined in the Agreement) into a Secured Revolving Time Note. Notwithstanding the provisions of the
Agreement, the Agreement is hereby amended, as of the date hereof, as follows: 
 
1.    Section 1 of the Agreement is hereby deleted in its entirety and the following new Section 1 substituted therefor: 
 
“SECTION 1 
 
AMOUNT AND TERMS OF CREDIT AND INTEREST 
 
THE REVOLVING LOAN 
 
1.1    Subject to the terms and conditions
of this Agreement, the Bank hereby establishes a revolving line of credit of up to $7,000,000.00 (each a “Loan”) to be advanced as hereinafter provided. The Bank shall, absent the occurrence of an Event of Default hereunder, from
time to time, make advances comprising the Revolving Loan, all of which shall be considered a “Loan” hereunder upon the Borrower’s request; provided, however, that no advance will be made if, after giving effect to the
Borrower’s request for such advance, the outstanding principal balance of the Revolving Loan would exceed $7,000,000.00 (the “Credit Limit”). 
 
1.2    Interest on advances under the Revolving Loan shall be payable monthly in arrears
commencing on May 1, 2003 at the rate of the Bank’s Base Rate in effect from time to time minus one half of one (0.5%) percent per annum. The Bank’s “Base Rate” shall mean the annual rate of interest established by the
Bank from time to time at its principal office, as its 

 
Base Rate, it being understood
that such rate is a reference rate and not necessarily the lowest rate of interest charged by Bank. The rate of interest payable by the Borrower shall be changed effective as of that day on which a change in the Bank’s Base Rate becomes
effective. Interest shall be computed on the basis of a 360-day year, for the actual number of days elapsed. Default interest shall be charged in accordance with the terms of the Revolving Note (as defined herein). 
 
1.3    The principal balance of the
Revolving Loan shall be payable on the Termination Date (as defined below). On any date on which a payment of interest or principal is due hereunder, the Bank may charge the Borrower’s demand deposit account(s) with the amount thereof.
The failure of the Bank so to charge such account shall not relieve the Borrower of its obligations to make payments hereunder. 
 
1.4    As evidence of the Borrower’s obligations under the Revolving Loan, the Borrower shall execute and deliver
to the Bank a Secured Revolving Time Note (the “Revolving Note”) dated April 1, 2003. 
 
1.5    The Bank need not enter payments of interest and principal upon the Revolving Note but may maintain a record
thereof on a separate ledger maintained by the Bank. 
 
1.6    No advance under the Revolving Loan will be made after March 31, 2005 (the “Expiration Date”), whichever is sooner, and the entire unpaid principal balance of the Revolving Loan, together
with all unpaid interest accrued thereon and all accrued and unpaid fees, if any, shall be due and payable without notice or demand on April 1, 2005 (the “Termination Date”). 
 
1.7    Prior to the close of the
Bank’s business on the Expiration Date, the Borrower may repay, in whole or in part, the principal amount of the Revolving Loan and may, absent the occurrence of an Event of Default hereunder, reborrow any such amounts repaid, all in accordance
with this Section 1. If, at any time, the unpaid principal balance of the Revolving Loan exceeds the Credit Limit, the Borrower shall immediately pay to the Bank the amount of such excess without notice or demand. 
 
1.8    The Bank may, at any time and from
time to time, upon the request of the Borrower, but in the Bank’s sole and absolute discretion, extend either or both of the Expiration Date and the Termination Date. 
 
1.9    The Bank need not enter payments of interest and principal upon the Revolving
Note, but may maintain a record thereof on a separate ledger maintained by the Bank. 
 
1.10    The Revolving Note is incorporated herein to the same extent as if it was set forth in full in this Agreement. 
 
1.11    All of the Borrower’s obligations to the Bank, of every kind and
description, including those arising under this Agreement, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, regardless of how they arise or by what agreement or instrument they may be evidenced,
including those arising under any other agreements, 
 

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instruments or documents
executed in conjunction herewith, or whether evidenced by an agreement or instrument, including obligations to perform acts and refrain from taking action, as well as obligations to repay the Loans, shall constitute the Borrower’s
“Liabilities” to the Bank, as the same may be modified, amended, replaced or extended from time to time. 
 
1.12.    Prior to the Expiration Date, the Borrower shall pay to the Bank quarterly in arrears, commencing on June 1,
2003 and continuing on the first day of each September, December, March and June thereafter, an unused line fee in an amount equal to one-quarter of one (3%) percent per annum (calculated on the basis of the actual number of days elapsed and a
360-day year) of the average daily unused principal amount of the Revolving Loan for the preceding calendar quarter.” 
 
2.    Section 5.1 of the Agreement is hereby deleted in its entirety and the following new Section 5.1 substituted
therefor: 
 
“5.1 The Bank shall have and hold
as security for the repayment of the Loan and all other Liabilities of the Borrower to the Bank a security interest in a money market account pledged to the Bank pursuant to a Security Agreement (Pledged Collateral) of even date (the
“Collateral”).” 
 
Except as
specifically amended hereby, the Agreement remains in full force and effect and the Borrower hereby reaffirms all warranties and representations contained therein, as of the date hereof. 
 
Please acknowledge your assent and agreement to the matters contained hereby signing this letter in the space
provided and returning it to the undersigned, whereupon it shall take effect as an instrument under seal. 
 
Very truly yours, 
 

	 BOSTON PRIVATE BANK & TRUST COMPANY

	
	 By:
	 	 /s/    ANDREW K.
MICHAUD      

	 	 	 Andrew K. Michaud, Vice President

 
ACCEPTED AND
AGREED TO: 
 

	 CURIS, INC.

	
	 By:
	 	 /s/    DANIEL R.
PASSERI        

	 	 	 Daniel R. Passeri, President and
 Chief Executive Officer

 

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SECURED
REVOLVING TIME NOTE 
 

	 $7,000,000.00
	  	 April 1, 2003

	 	  	 Boston, Massachusetts

 
On March
31, 2005, for value received, Curis, Inc., a Delaware corporation, promises to pay to Boston Private Bank & Trust Company (the “Bank”), at the office of the Bank located at Ten Post Office Square, Boston, Massachusetts, or at
such other place as the Bank shall designate, the principal sum of Seven Million ($7,000,000.00) Dollars (or if less, the aggregate unpaid principal amount of all loans outstanding pursuant to a loan agreement dated June 14, 2002, as amended,
between the Bank and the undersigned (the “Loan Agreement”), together with interest on the unpaid balance, payable monthly in arrears on the first day of each calendar month, commencing on the first day of the first month next
succeeding the date of the first advance hereunder at an interest rate per annum equal to the Bank’s Base Rate in effect from time to time minus one-half of one (0.5%) percent per annum. Each change in such interest rate shall take effect
simultaneously with the corresponding change in such Base Rate. “Base Rate” shall mean the rate of interest announced by Bank in Boston from time to time as its Base Rate, it being understood that such rate is a reference rate, and
not necessarily the lowest rate of interest charged by Bank. Interest shall be calculated on the basis of actual days elapsed and a 360-day year. If this Note is not paid in full at maturity or upon the exercise by the Bank of its rights in the
event of the undersigned’s default, interest on unpaid balances shall thereafter be payable at a fluctuating interest rate per annum equal to four percent (4%) above the applicable rate in effect from time to time. 
 
The undersigned hereby authorizes the Bank to charge the
amount of all monthly interest and the principal payment, when due and payable hereunder, against the undersigned’s loan account created pursuant to the Loan Agreement. 
 
The Bank may collect a late charge not to exceed five percent (5%) of any installment of interest or
principal, or of any other amount due to the Bank which is not paid or reimbursed by the undersigned within ten (10) days of the due date thereof to defray the extra cost and expense involved in handling such delinquent payment and the increased
risk of non-collection. 
 
This Note is issued
pursuant to the Loan Agreement, to which reference may be had for a complete description of the rights, obligations, liabilities and restrictions of the undersigned and the Bank. 
 
At the option of the Bank, this Note shall become immediately due and payable without notice or demand upon
the occurrence at any time of (i) the failure to pay in full and when due any installment of principal or interest hereunder; (ii) one or more Events of Default as defined in the Loan Agreement upon the expiration of any applicable grace period; or
(iii) the termination of the Loan Agreement. 

 
The
undersigned agrees to pay all reasonable costs of collection, including reasonable fees of attorneys. 
 
No delay or omission on the part of the Bank in exercising any right hereunder shall operate as a waiver of such right or of any other
right of such Bank, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. The undersigned and every indorser or guarantor of this Note regardless of the time,
order or place of signing waives presentment, demand, protest and notices of every kind and assents to any one or more extensions or postponements of the time of payment or any other indulgences, to any substitutions, exchanges or releases of
collateral if at any time there be available to the Bank collateral for this Note, and to the additions or releases of any other parties or persons primarily or secondarily liable. 
 
All rights and obligations hereunder shall be governed by the law of the Commonwealth of Massachusetts and
this Note shall be deemed to be under seal. 
 

	 WITNESS:
	 	 	 	 CURIS, INC.

	
	 By:
	 	 /s/    MICHAEL P.
GRAY        

	 	 	 	 By:
	 	 /s/    DANIEL R. PASSERI
        

	 	 	 	 	 	 	 	 	 Daniel R. Passeri, President and
 Chief Executive Officer

 
THIS
NOTE IS SECURED PURSUANT TO A SECURITY AGREEMENTS 
(PLEDGED COLLATERAL) OF EVEN DATE. 
 

5 

 
SECURITY
AGREEMENT (Pledged Collateral) 
 
In
consideration of loans heretofore, now, or hereafter made to Curis Inc. (hereinafter called the “Pledgor”) by Boston Private Bank & Trust Company (hereinafter called the “Bank”), and to secure payment of any
liability or obligation of the Pledgor to the Bank, direct or indirect, primary or secondary, now existing or hereafter arising including, without limitation, obligations arising pursuant to a certain Loan Agreement dated June 14, 2002, as amended
from time to time (the “Loan Agreement”) and Pledgor’s Secured Revolving Time Note in the principal amount of Seven Million ($7,000,000.00) Dollars, dated April 1, 2003 in which Bank is the holder (said liabilities and
obligations hereby secured being hereinafter called “Obligations”), the Pledgor assigns, transfers and delivers to the Bank the collateral (to the extent of the principal balance of the Obligations) described on Exhibit A attached
hereto and made a part hereof, together with any additions to or substitutions for said property and any and all proceeds of the same, all of which shall hereinafter be referred to as “Collateral”. The Bank, upon the occurrence of
an Event of Default hereunder, may transfer Collateral into its name or that of its nominee and may receive the income and any distribution thereon and hold the same as Collateral for the Obligations, or apply the same to any defaulted Obligation.

 
Pledgor may not, without the Bank’s prior
written consent, withdraw any sums or other assets from the Collateral if the face amount or fair market value, as determined by Bank, of the remaining Collateral in the account referenced in Exhibit A attached hereto, in the aggregate would be less
than the then outstanding principal balance of the Obligations. In addition, if at any time the face amount or fair market value at the time of such determination, as reported in any widely distributed standard price quotation or, in the absence of
such a quotation, as reasonably determined by Bank of the certificates of deposit or other investment vehicles in the account referenced in Exhibit A attached hereto, as determined by Bank, is less than the then outstanding principal balance of the
Obligations, Pledgor may be required by Bank, in Bank’s discretion, to provide additional collateral to the Bank. 
 
The occurrence of an Event of Default under the Loan Agreement and the expiration of any applicable notice or cure periods shall
constitute an “Event of Default” hereunder. 
 
Upon an Event of Default hereunder, and at any time or times thereafter, without any demand, except as may be required by applicable law, the Bank may sell or otherwise dispose of any or all of the Collateral and may exercise any and
all rights and remedies accorded to it by Article 9 of the Massachusetts Uniform Commercial Code, as amended from time to time, or otherwise accorded by law, all as the Bank or any authorized person acting for it may determine. 
 
The Bank, at its option, after the occurrence of an Event of
Default hereunder may, but shall have no obligation to do so, demand, sue for, collect, or make any compromise or settlement it deems desirable with reference to the Collateral. The Bank shall have no duty as to collection or protection of any
Collateral or any income or distribution thereon nor as to the preservation of any rights, including, without limitation, rights against prior parties, beyond safekeeping of the Collateral in accordance with the Bank’s normal policies and
procedures exercised in its good faith judgment. 

 
The Bank in
its discretion, following an Event of Default hereunder, may apply any and all proceeds of the Collateral, however arising, and other amounts collected or received in the exercise of its rights hereunder to the Obligations, whether or not then due,
and may exercise said rights, without regard to the existence of any other security for any Obligation. 
 
The Pledgor hereby waives notice of any and all advances, extensions or renewals, and of any default hereunder or as to any Obligation, as
well as presentment, demand, notice, and protest as to any and all Obligations and also all Obligations of the Pledgor hereunder. 
 
No delay or omission by the Bank in exercising or enforcing any of its rights, powers, privileges, remedies, immunities or discretions
(all of which are hereinafter collectively referred to as the “Bank’s rights and remedies”) hereunder shall constitute a waiver thereof; and no waiver by the Bank of any default of the Pledgor hereunder shall operate as a
waiver of any other default hereunder. No term or provision hereof shall be waived, altered or modified except with the prior written consent of the Bank, which consent makes explicit reference to this Agreement. Except as provided in the preceding
sentence, no other agreement or transaction, of whatsoever nature, entered into between the Bank and the Pledgor at any time (whether before, during or after the effective date or term of this Agreement), shall be construed in any particular as a
waiver, modification or limitation of any of the Bank’s rights and remedies under this Agreement (nor shall anything in this Agreement be construed as a waiver, modification or limitation of any of the Bank’s rights and remedies under any
such other agreement or transaction), but all of the Bank’s rights and remedies not only under the provisions of this Agreement but also of any such other agreement or transaction shall be cumulative and not alternative or exclusive.

 
If any provision of this Agreement or portion of
such provision or the application thereof to any person or circumstance shall to any extent be held invalid or unenforceable, the remainder of this Agreement (or the remainder of such provision) and the application thereof to other persons or
circumstances shall not be affected thereby. 
 
This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto, and shall remain in full force and effect until payment of all Obligations of the Pledgor to the Bank or
until terminated by written notice from either party to the other party of the termination hereof; provided that any such termination shall not release or affect any Collateral in which the Bank already has a security interest or any Obligations
incurred or rights accrued hereunder prior to the effective date of such notice of such termination. Notwithstanding any such termination, the Bank shall have a security interest in all Collateral to secure the payment and performance of Obligations
arising after such termination as a result of commitments or undertakings made or entered into by the Bank prior to such termination. 
 
This Agreement is intended to take effect as a sealed instrument and has been executed or completed and is to be performed in the
Commonwealth of Massachusetts, and it and all transactions hereunder or pursuant hereto shall be governed as to interpretation, validity, effect, rights, duties and remedies of the parties hereunder and in all other respects by the domestic laws of
the Commonwealth of Massachusetts. 
 

7 

 
Witness our
hands this 1st day of April, 2003. 
 

	 WITNESS: 
	 	 	 	 CURIS, INC.

	
	 By:
	 	 /s/    MICHAEL P.
GRAY        

	 	 	 	 By:
	 	 /s/    DANIEL R.
PASSERI        

	 	 	 	 	 	 	 	 	 Daniel R. Passeri, President and
 Chief Executive Officer

 

	 Address:
	  	 61 Moulton Street
 Cambridge, MA 02138-1118

 

8 

 
EXHIBIT
A 
 
COLLATERAL 
 
Curis, Inc. (Money Market) Account Number 3143778 at the Bank
together with all additions thereto and substitutions thereof and all proceeds of the same. 
 

9 

 
BORROWER’S GENERAL CERTIFICATE 
 

	 To:
	  	 Boston Private Bank & Trust Company (“Bank”)

	
	 From:
	  	 Curis, Inc. (“Borrower”)

	
	 Closing Date:
	  	 April 2, 2003

 
The
undersigned certifies that he is the Secretary of Borrower and that, as Secretary, the undersigned is authorized to execute and deliver this Certificate in the name and on behalf of Borrower. The undersigned further certifies that: 
 
1.    This Certificate is being delivered
in Boston, Massachusetts, on the Closing Date in connection with the execution and delivery of a First Amendment of Loan Agreement between Borrower and Bank dated as of the Closing Date (the “Amendment Agreement”), and related
documents. 
 
2.    Attached
hereto as Exhibit A is a true, correct and complete copy of resolutions by unanimous written consent of the Board of Directors of Borrower dated March 31, 2003 and such resolutions are in full force and effect on and as of the Closing Date without
revocation, modification or amendment in any respect. No other or further corporate action by or on behalf of Borrower or its shareholders is necessary or appropriate to authorize the execution, delivery and performance of the Amendment Agreement or
any or all of the other agreements and documents required to be executed and delivered by Borrower in order to give effect to and consummate the transactions contemplated by the Amendment Agreement. The foregoing will not be in contravention of any
provision of Borrower’s Articles of Organization, By-Laws or any document or agreement to which Borrower is a party or which is binding on Borrower. 

 
3.    Borrower’s Articles of Organization are in full force and effect on and as of the Closing Date without modification or amendment in any respect since June 14, 2002. 
 
4.    Borrower’s By-Laws are in full
force and effect on and as of the Closing Date without modification or amendment in any respect since June 14, 2002. 
 
5.    Each officer and agent of the Borrower indicated below is authorized and empowered to act in accordance with the
resolutions attached hereto as Exhibit A and their specimen signatures are as follows: 
 

	 Name

	  	 
	 President and Chief Executive Officer
	  	 /s/ Daniel R. Passeri

	 	  	 Daniel R. Passeri

	 Senior Vice President of Finance,
Chief Financial Officer,
Treasurer and Secretary
	  	 /s/ Christopher U. Missling

	 	  	 Christopher U. Missling, Ph.D.

 
6.    Each officer and director of Borrower indicated below has been duly elected and is at present qualified in acting in the office indicated opposite his/her name, and the signatures below are the genuine
signatures of such officers and directors: 
 

	 Name

	  	 Title

	  	 Signature

	 Daniel R. Passeri
	  	 President and Chief
Executive Officer
	  	 /s/ Daniel R. Passeri

	
	 Christopher U. Missling, Ph.D.
	  	 Senior Vice President of Finance, Chief Financial Officer, Treasurer and Secretary
	  	 /s/ Christopher U. Missling

 
 

11 

 
IN WITNESS
WHEREOF, the undersigned has executed and delivered this Certificate in the name and on behalf of Borrower and under its corporate seal on and as of the Closing Date. 
 

	 [SEAL] 
	 /s/ Christopher U. Missling 

Christopher U. Missling, Ph.D. 
 

12 

 
EXHIBIT
A 
 

	 Resolved:
	 	 That the President and the Senior Vice President of Finance of the Corporation or either one of them be and
hereby are authorized and empowered to borrow up to $7,000,000 under a cash secured loan arrangement with Boston Private Bank & Trust Company (“Boston Private”); and

	
	 Resolved:
	 	 That the President and the Senior Vice President of Finance or either one of them be and hereby are authorized
and empowered to enter into and execute on behalf of the Corporation the First Amendment of the Loan Agreement, the Secured Revolving Time Note and Security Agreement on terms substantially similar to those described in Exhibit A;
and

	
	 Resolved:
	 	 That the President and the Senior Vice President of Finance or either one of them be and hereby are authorized
and empowered to enter into a Pledged Cash Account with Boston Private on behalf of the Corporation; and

	
	 Resolved:
	 	 That until Boston Private receives notice in writing of any change or limitations of authority of the President or
Senior Vice President of Finance of the Corporation, Boston Private is authorized to rely upon the authority and power set forth in these resolutions; and

	
	 Resolved:
	 	 That either of the officers authorized by the foregoing Resolutions, acting singly, may by written instrument
furnished to the Secured Party delegate to any other officer or person the same authority which is vested singly and individually by said Resolutions in the officer(s) so delegating authority, which written delegation shall be in such form as may
requested by Boston Private and may be subject to such restrictions and limitations as may be indicated thereon.

 

13

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