Document:

Exhibit 10.44

 

MASTER LEASE AGREEMENT

 

dated as of December 30, 2005  (“Agreement”)

 

THIS AGREEMENT is between General
Electric Capital Corporation (together with its successors and
assigns, if any, “Lessor”) and Momenta Pharmaceuticals, Inc. (“Lessee”). 
Lessor has an office at 83 Wooster Heights Road, Danbury, CT 06810.  Lessee is a corporation organized and
existing under the laws of the state of Delaware.  Lessee’s mailing address and chief place of
business is 675 West Kendall Street, Cambridge, MA 02142.  This Agreement contains the general terms
that apply to the leasing of Equipment from Lessor to Lessee.  Additional terms that apply to the Equipment
(term, rent, options, etc.) shall be contained on a schedule (“Schedule”).

 

1.                   LEASING:

 

(a)          Lessor agrees to lease to Lessee, and Lessee agrees to lease from
Lessor, the equipment and the property (“Equipment”)
described in any Schedule signed by both parties.

 

(b)         Lessor is purchasing the Equipment for leasing back to Lessee pursuant
to the Lease. if on or before the Last Delivery Date Lessor receives (i) a
Schedule for the Equipment, (ii) evidence of insurance which complies
with the requirements of Section 9, (iii) such other documents as
Lessor may reasonably request, and (iv) if the in-service date for the
Equipment is ninety (90) days or less. Notwithstanding anything to the
contrary, Lessee may include, in any Schedule for the Equipment, Equipment
with invoice dates not to exceed one hundred eighty days prior to the date of
the schedule.  Each of the documents
required above must be in form and substance satisfactory to Lessor. Lessor
hereby appoints Lessee its agent for inspection and acceptance of the Equipment
from the Supplier. Once the Schedule is signed, the Lessee may not cancel
the Schedule.

 

2.                   TERM, RENT AND PAYMENT:

 

(a)          The rent payable for the Equipment and Lessee’s right to use the
Equipment shall begin on the earlier of (i) the date when the Lessee signs
the Schedule and accepts the Equipment or (ii) when Lessee has
accepted the Equipment under a Certificate of Acceptance (“Lease Commencement Date”).  The term of this Agreement shall be the
period specified in the applicable Schedule. 
The word “term” shall include all basic and any renewal terms.

 

(b)         Lessee shall pay rent to Lessor at its address stated above, except as
otherwise directed by Lessor.  Rent
payments shall be in the amount set forth in, due as stated in the applicable
Schedule, and paid via electronic payment. 
If any Advance Rent (as stated in the Schedule) is payable, it shall be
due when the Lessee signs the Schedule. 
Advance Rent shall be applied to the first rent payment and the balance,
if any, to the final rent payment(s) under such Schedule.  In no event shall any Advance Rent or any
other rent payments be refunded to Lessee. 
If rent is not paid within fifteen (15) days of its due date, Lessee
agrees to pay a late charge of five cents ($.05) per dollar on, and in addition
to, the amount of such rent but not exceeding the lawful maximum, if any.

 

3.                   RENT ADJUSTMENT:

 

(a)          If, solely as a result of Congressional enactment of any law (including,
without limitation, any modification of, or amendment or addition to, the
Internal Revenue Code of 1986, as amended, (“Code”)),
the maximum effective corporate income tax rate (exclusive of any minimum tax
rate) for calendar-year taxpayers (“Effective
Rate”) is higher than thirty-five percent (35%) for any year during
the lease term, then Lessor shall have the right to increase such rent payments
by requiring payment of a single additional sum.  The additional sum shall be equal to the
product of (i) the Effective Rate (expressed as a decimal) for such year
less .35 (or, in the event that any adjustment has been made hereunder for any
previous year, the Effective Rate (expressed as a decimal) used in calculating
the next previous adjustment) times (ii) the adjusted Termination Value
(defined below), divided by (iii) the difference between the new Effective
Rate (expressed as a decimal) and one (1). 
The adjusted Termination Value shall be the Termination Value
(calculated as of the first rent due in the year for which the adjustment is
being made) minus the Tax Benefits that would be allowable under Section 168
of the Code (as of the first day of the year for which such adjustment is being
made and all future years of the lease term). 
The Termination Values and Tax Benefits are defined on the
Schedule.  Lessee shall pay to Lessor the
full amount of the additional rent payment on the later of (i) receipt of
notice or (ii) the first day of the year for which such adjustment is
being made.

 

(b)         Lessee’s obligations under this Section 3 shall survive any
expiration or termination of this Agreement.

 

 

4.                   TAXES:

 

(a)          If permitted by law, Lessee shall report and pay promptly all taxes, fees
and assessments due, imposed, assessed or levied against any Equipment (or
purchase, ownership, delivery, leasing, possession, use or operation thereof),
this Agreement (or any rents or receipts hereunder), any Schedule, Lessor or
Lessee by any governmental entity or taxing authority during or related to the
term of this Agreement, including, without limitation, all license and
registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges,
together with any penalties, fines or interest thereon (collectively “Taxes”). 
Lessee shall have no liability for Taxes imposed by the United States of
America or any state or political subdivision thereof which are on or measured
by the net income of Lessor except as provided in Sections 3 and 14(c).  Lessee shall promptly reimburse Lessor (on an
after tax basis) for any Taxes charged to or assessed against Lessor.  Lessee shall show Lessor as the owner of the
Equipment on all tax reports or returns, and send Lessor a copy of each report
or return and evidence of Lessee’s payment of Taxes upon request.

 

(b)         Lessee’s obligations, and Lessor’s rights and privileges, contained in
this Section 4 shall survive the expiration or other termination of this
Agreement.

 

5.                   REPORTS:

 

(a)          If any tax or other lien shall attach to any Equipment, Lessee will
notify Lessor in writing, within thirty (30) days after Lessee becomes aware of
the tax or lien. The notice shall include the full particulars of the tax or
lien and the location of such Equipment on the date of the notice.

 

(b)         Lessee will deliver to Lessor financial statements as follows.  If Lessee is a privately held company, then
Lessee agrees to provide monthly financial statements, certified by Lessee’s
president or chief financial officer including a balance sheet, statement of
operations and cash flow statement within 30 days of each month end and its
complete audited annual financial statements, certified by a recognized firm of
certified public accountants, within 120 days of fiscal year end or at such
time as Lessee’s Board of Directors receives the audit.  If Lessee is a publicly held company, then
Lessee agrees to provide Lessor with the url link to reports on Form 10-K
and 10-Q that include quarterly unaudited statements and annual audited
statements, certified by a recognized firm of certified public accountants, as
are provided to the Securities and Exchange Commission (“SEC”).  All such statements are to be prepared using
generally accepted accounting principles (“GAAP”) and, if Lessee is a publicly
held company, are to be in compliance with SEC requirements.

 

(c)          Lessor may inspect any Equipment during normal business hours after
giving Lessee reasonable prior notice and subject to Lessor having previously
executed Momenta’s standard confidentiality agreement (i.e. the terms of the
confidentiality agreement dated December 21, 2005 between the parties (the
“CDA”) shall apply to any such inspection and the term of exchange for
information shall be extended from two years to the term of this Agreement)

 

(d)         Lessee will keep the Equipment at the Equipment Location (specified in
the applicable Schedule) and will give Lessor prompt written notice of any
relocation of Equipment.  If Lessor asks,
Lessee will promptly notify Lessor in writing of the location of any Equipment.

 

(e)          If any Equipment is lost or damaged (where the estimated repair costs
would exceed the greater of ten percent (10%) of the original Equipment cost or
ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in an
accident causing personal injury or property damage, Lessee will promptly and
fully report the event to Lessor in writing.

 

(f)            Lessee will furnish a certificate of an
authorized officer of Lessee stating that he or she has reviewed the activities
of Lessee and that, to the best of his or her knowledge, there exists no
default or event which with notice or lapse of time (or both) would become such
a default within thirty (30)  days after
any request by Lessor.

 

(g)         Lessee will promptly notify Lessor of any change in Lessee’s state of
incorporation or organization.

 

6.                   DELIVERY, USE AND OPERATION:

 

(a)          All Equipment shall be shipped directly from the Supplier to Lessee.

 

(b)         Lessee agrees that the Equipment will be used by Lessee solely in the
conduct of its business and in a manner complying with all applicable laws,
regulations and insurance policies.

 

(c)          Lessee will not move any equipment from the location specified on the
Schedule, without the prior written consent of Lessor.

 

(d)         Lessee will keep the Equipment free and clear of all liens and
encumbrances other than those which result from acts of Lessor.

 

(e)          Lessor shall not disturb Lessee’s quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is
continuing under this Agreement.

 

 

7.                   MAINTENANCE:

 

(a)          Lessee will, at its sole expense, maintain each unit of Equipment in
good operating order and repair, normal wear and tear excepted.  The Lessee shall also generally maintain the
Equipment in accordance with manufacturer’s recommendations such that it
remains in good working order.  Lessee
shall make all alterations or modifications required to comply with any
applicable law, rule or regulation during the term of this Agreement.  If Lessor requests, Lessee shall affix
plates, tags or other identifying labels showing ownership thereof by
Lessor.  The tags or labels shall be
placed in a prominent position on each unit of Equipment.

 

(b)         Lessee will not attach or install anything on any Equipment that will
impair the originally intended function or use of such Equipment without the
prior written consent of Lessor.  All
additions,  parts, supplies, accessories,
and equipment (“Additions”)
furnished or attached to any Equipment that are not readily removable shall
become the property of Lessor.  All
Additions shall be made only in compliance with applicable law.  Lessee will not attach or install any
Equipment to or in any other personal or real property without the prior
written consent of Lessor.

 

8.                   STIPULATED LOSS VALUE:  If
for any reason any unit of Equipment becomes worn out, lost, stolen, destroyed,
irreparably damaged or unusable (“Casualty
Occurrences”) Lessee shall promptly and fully notify Lessor in
writing.  Lessee shall pay Lessor the sum
of (i) the Stipulated Loss Value (see Schedule) of the affected unit
determined as of the rent payment date prior to the Casualty Occurrence; and (ii) all
rent and other amounts which are then due under this Agreement on the Payment
Date (defined below) for the affected unit. 
The Payment Date shall be the next rent payment date after the Casualty
Occurrence. Upon Payment of all sums due hereunder, the term of this lease as
to such unit shall terminate.

 

9.                   INSURANCE:

 

(a)          Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time
the Equipment is shipped to Lessee.

 

(b)         Lessee agrees, at its own expense, to keep all Equipment insured for
such amounts and against such hazards as Lessor may reasonably require. All
such policies shall be with companies, and on terms, reasonably satisfactory to
Lessor.  The insurance shall include
coverage for damage to or loss of the Equipment, liability for personal
injuries, death or property damage. 
Lessor shall be named as additional insured with a loss payable clause
in favor of Lessor, as its interest may appear, irrespective of any breach of
warranty or other act or omission of Lessee. 
The insurance shall provide for liability coverage in an amount equal to
at least TWO MILLION U.S. DOLLARS ($2,000,000.00) total liability per
occurrence, unless otherwise stated in any Schedule.  The casualty/property damage coverage shall
be in an amount equal to the higher of the Stipulated Loss Value or the full
replacement cost of the Equipment.  No
insurance shall be subject to any co-insurance clause. The insurance policies
shall provide that the insurance may not be altered or canceled by the insurer
until after ten (10) days written notice to Lessor.  Lessee agrees to deliver to Lessor evidence
of insurance reasonably satisfactory to Lessor.

 

(c)          If Lessee is unavailable after reasonable notice and uses commercially
reasonable efforts to engage Lessee, Lessee hereby appoints Lessor as Lessee’s
attorney-in-fact to make proof of loss and claim for insurance, and to make
adjustments with insurers and to receive payment of and execute or endorse all
documents, checks or drafts in connection with insurance payments. Lessor shall
not act as Lessee’s attorney-in-fact unless Lessee is in default.  Lessee shall pay any reasonable expenses of
Lessor in adjusting or collecting insurance. 
Lessee will not make adjustments with insurers except with respect to
claims for damage to any unit of Equipment where the repair costs are less than
the lesser of ten percent (10%) of the original Equipment cost or ten thousand
and 00/100 dollars ($10,000).  Lessor
may, at its option, apply proceeds of insurance, in whole or in part, to (i) repair
or replace Equipment or any portion thereof, or (ii) satisfy any
obligation of Lessee to Lessor under this Agreement.

 

10.            RETURN OF EQUIPMENT:

 

(a)          At the expiration or termination of this Agreement or any Schedule,
Lessee shall perform any testing and repairs required to place the units of
Equipment in the same condition and appearance as when received by Lessee
(reasonable wear and tear excepted) and in good working order for the original
intended purpose of the Equipment.  If
required the units of Equipment shall be deinstalled, disassembled and crated
by an authorized manufacturer’s representative or such other service person as
is reasonably satisfactory to Lessor. 
Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment.  All Equipment will be cleaned, sterilized, if
necessary, cosmetically acceptable, and in such condition as to be immediately
installed into use in a similar environment for which the Equipment was
originally intended to be used.  All
waste material and fluid must be removed from the Equipment and disposed of in
accordance with then current waste disposal laws.  Lessee shall return the units of Equipment to
a location within the continental United States as Lessor shall direct.  Lessee shall obtain and pay for a policy of
transit insurance for the redelivery period in an amount equal to the
replacement value of the Equipment.  The
transit insurance must name Lessor as the loss payee.  The Lessee shall pay for all costs to comply
with this section (a).

 

(b)         Until Lessee has fully complied with the requirements of Section 10(a) above,
Lessee’s rent payment obligation and all other obligations under this Agreement
shall continue from month to month notwithstanding any expiration or
termination of the lease term. Lessor may terminate the Lessee’s right to use
the Equipment upon ten (10) days notice to Lessee if Lessee is in material
default of the Agreement and subject to provision of Section Eleven (11)
herein.

 

(c)          Lessee shall provide to Lessor a detailed inventory of all components of
the Equipment including model and serial numbers.  Lessee shall also provide an up-to-date copy
of all other documentation pertaining to the Equipment.  All service manuals, blue prints, process
flow diagrams, operating manuals, inventory and maintenance records shall be
given to Lessor at least ninety (90) days and not more than one hundred twenty
(120) days prior to lease termination.

 

 

11.            DEFAULT AND REMEDIES:

 

(a)          Lessor may in writing declare this Agreement in default if: (i) Lessee
breaches its obligation to pay rent or any other sum when due and fails to cure
the breach within fifteen (15) days; (ii) Lessee breaches any of its
insurance obligations under Section 9; (iii) Lessee breaches any of
its other material obligations and fails to cure that breach within thirty (30)
days after written notice from Lessor; (iv) any representation or warranty
made by Lessee in connection with this Agreement shall be false or misleading
in any material respect; (v) Lessee or any guarantor or other obligor for
the Lessee’s obligations hereunder (“Guarantor”)
becomes insolvent or ceases to do business as a going concern; (vi) any
Equipment is illegally used; (vii) if Lessee or any Guarantor is a natural
person, any death or incompetency of Lessee or such Guarantor; (viii) a
petition is filed by or against Lessee or any Guarantor under any bankruptcy or
insolvency laws and in the event of an involuntary petition, the petition is
not dismissed within forty-five (45) days of the filing date; (ix) Lessee
defaults under any other material obligation for (A) borrowed money, (B) the
deferred purchase price of property, or (C) payments due under lease
agreements; (x) there is a merger, consolidation or acquisition of Lessee by a
credit reasonably deemed inferior to Lessee’s credit, or (xi) there is a
material adverse change in the Lessee’s financial condition as determined
solely by the Lessor.  The default
declaration shall apply to all Schedules unless specifically excepted by
Lessor.

 

(b)         After a default, at the request of Lessor, Lessee shall comply with the
provisions of Section 10(a).  Lessee
hereby authorizes Lessor to upon reasonable notice peacefully enter any
premises where any Equipment may be and after providing Lessor with reasonable
opportunity to remove any proprietary data or materials contained in or on the
Equipment, take possession of the Equipment. 
Lessee shall immediately pay to Lessor without further demand as
liquidated damages for loss of a bargain and not as a penalty, the Stipulated
Loss Value of the Equipment (calculated as of the rent payment date prior to
the declaration of default), and all rents and other sums then due under this
Agreement and all Schedules.  Lessor may
terminate this Agreement as to any or all of the Equipment.  A termination shall occur only upon written
notice by Lessor to Lessee and only as to the units of Equipment specified in
any such notice.  Lessor may, but shall
not be required to, sell Equipment at private or public sale, in bulk or in
parcels, with or without notice, and without having the Equipment present at
the place of sale.  Lessor may also, but
shall not be required to, lease, otherwise dispose of or keep idle all or part
of the Equipment.  The proceeds of sale,
lease or other disposition, if any, shall be applied in the following order of
priorities:  (i) to pay all of
Lessor’s costs, charges and expenses incurred in taking, removing, holding,
repairing and selling, leasing or otherwise disposing of Equipment; then, (ii) to
the extent not previously paid by Lessee, to pay Lessor all sums due from
Lessee under this Agreement; then (iii) to reimburse to Lessee any sums
previously paid by Lessee as liquidated damages; and (iv) any surplus
shall be retained by Lessor.  Lessee
shall immediately pay any deficiency in (i) and (ii) above.

 

(c)          The foregoing remedies are cumulative, and any or all thereof may be
exercised instead of or in addition to each other or any remedies at law, in
equity, or under statute.  Lessee waives
notice of sale or other disposition (and the time and place thereof), and the
manner and place of any advertising. 
Lessee shall pay Lessor’s actual attorney’s fees incurred in connection
with the enforcement, assertion, defense or preservation of Lessor’s rights and
remedies under this Agreement, or if prohibited by law, such lesser sum as may
be permitted.  Waiver of any default
shall not be a waiver of any other or subsequent default.

 

12.            ASSIGNMENT:  LESSEE
SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY EQUIPMENT OR THE
INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR
EXCEPT TO AN AFFILIATE OR ENTITY ACQUIRING ALL OR A SUBSTANTIAL PORTION OF
LESSEE’S BUSINESS TO WHICH THE AGREEMENT RELATES. Lessor may, without the
consent of Lessee, assign this Agreement, any Schedule or the right to
enter into a Schedule.  Lessee agrees
that if Lessee receives written notice of an assignment from Lessor, Lessee
will pay all rent and all other amounts payable under any assigned Schedule to
such assignee or as instructed by Lessor. 
Lessee also agrees to confirm in writing receipt of the notice of
assignment as may be reasonably requested by assignee.  Lessee hereby waives and agrees not to assert
against any such assignee any defense, set off, recoupment claim or
counterclaim which Lessee has or may at any time have against Lessor for any
reason whatsoever; provided that the foregoing waiver does not apply to or
limit in any way any rights or remedies that Lessee may have against Lessor.

 

13.            NET LEASE:  Lessee
is unconditionally obligated to pay all rent and other amounts due for the
entire lease term no matter what happens, even if the Equipment is damaged or
destroyed, if it is defective or if Lessee no longer can use it.  Lessee is not entitled to reduce or set-off
against rent or other amounts due to Lessor or to anyone to whom Lessor assigns
this Agreement or any Schedule whether Lessee’s claim arises out of this
Agreement, any Schedule, any statement by Lessor, Lessor’s liability or any
manufacturer’s liability, strict liability, negligence or otherwise, unless
Lessee’s claim arises from Lessor’s negligence or willful misconduct.

 

14.            INDEMNIFICATION:

 

(a)          Lessee hereby agrees to indemnify Lessor, its agents, employees,
successors and assigns (on an after tax basis) from and against any and all
losses, damages, penalties, injuries, claims, actions and suits, including
legal expenses, of whatsoever kind and nature arising out of or relating to the
Equipment or this Agreement, except to the extent the losses, damages,
penalties, injuries, claims, actions, suits or expenses result from Lessor’s
negligence or willful misconduct (“Claims”).  This indemnity shall include, but is not
limited to, Lessor’s strict liability in tort and Claims, arising out of the
selection, manufacture, purchase, acceptance or rejection of Equipment, the
ownership of Equipment during the term of this Agreement, and the delivery,
lease, possession, maintenance, uses, condition, return or operation of
Equipment (including, without limitation, latent and other defects, whether or
not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage).  Lessee shall, upon request, defend any actions
based on, or arising out of, any of the foregoing.

 

 

(b)         Lessee hereby represents, warrants and covenants that at no time during
the term of this Agreement will Lessee take or omit to take, nor will it permit
any sublessee or assignee to take or omit to take, any action (whether or not
such act or omission is otherwise permitted by Lessor or by this Agreement),
which will result in the disqualification of any Equipment for, or recapture
of, all or any portion of such items of deduction and credit specified in Section C
of the applicable Schedule (“Tax Benefits”).

 

(c)          If as a result of a breach of any representation, warranty or covenant
of the Lessee contained in this Agreement or any Schedule (i) tax
counsel of Lessor mutually agreed upon by Lessor and Lessee, such agreement,
not to be unreasonably withheld by Lessee, shall determine that Lessor is not
entitled to claim on its Federal income tax return all or any portion of the
Tax Benefits with respect to any Equipment, or (ii) any Tax Benefit claimed
on the Federal income tax return of Lessor is disallowed or adjusted by the
Internal Revenue Service, or (iii) any Tax Benefit is recalculated or
recaptured (any determination, disallowance, adjustment, recalculation or
recapture being a “Loss”), then Lessee
shall pay to Lessor, as an indemnity and as additional rent, an amount that
shall, in the reasonable opinion of Lessor, cause Lessor’s after-tax economic
yields and cash flows to equal the Net Economic Return that would have been
realized by Lessor if such Loss had not occurred.  Such amount shall be payable upon demand
accompanied by a statement describing in reasonable detail such Loss and the
computation of such amount.  The economic
yields and cash flows shall be computed on the same assumptions, including tax
rates as were used by Lessor in originally evaluating the transaction (“Net Economic Return”).  If an adjustment has been made under Section 3
then the Effective Rate used in the next preceding adjustment shall be
substituted.

 

(d)         All references to Lessor in this Section 14 include Lessor and the
consolidated taxpayer group of which Lessor is a member. All of Lessor’s
rights, privileges and indemnities contained in this Section 14 shall
survive the expiration or other termination of this Agreement.  The rights, privileges and indemnities
contained herein are expressly made for the benefit of, and shall be
enforceable by Lessor, its successors and assigns.

 

15.            DISCLAIMER:  LESSEE
ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT ANY ASSISTANCE FROM
LESSOR, ITS AGENTS OR EMPLOYEES.  LESSOR
DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY
WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH
RESPECT TO THE EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH
SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS
FOR ANY PURPOSE, USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT,
OR TITLE.  All such risks, as between
Lessor and Lessee, are to be borne by Lessee. 
Without limiting the foregoing, Lessor shall have no responsibility or
liability to Lessee or any other person with respect to any of the following; (i) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by any Equipment, any inadequacy thereof, any deficiency or defect (latent or
otherwise) of the Equipment, or any other circumstance in connection with the
Equipment; (ii) the use, operation or performance of any Equipment or any
risks relating to it; (iii) any interruption of service, loss of business
or anticipated profits or consequential damages; or (iv) the delivery,
operation, servicing, maintenance, repair, improvement or replacement of any
Equipment.  If, and so long as, no
default exists under this Agreement, Lessee shall be, and hereby is, authorized
during the term of this Agreement to assert and enforce whatever claims and
rights Lessor may have against any Supplier of the Equipment at Lessee’s sole
cost and expense,  in the name of and for
the account of Lessor and/or Lessee, as their interests may appear.

 

16.            REPRESENTATIONS AND
WARRANTIES OF LESSEE:  Lessee makes each of the following
representations and warranties to Lessor on the date hereof and on the date of
execution of each Schedule.

 

(a)          Lessee has adequate power and capacity to enter into, and perform under,
this Agreement and all related documents (together, the “Documents”).  Lessee is duly qualified to do business
wherever necessary to carry on its present business and operations, including
the jurisdiction(s) where the Equipment is or is to be located.

 

(b)         The Documents have been duly authorized, executed and delivered by
Lessee and constitute valid, legal and binding agreements, enforceable in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws.

 

(c)          No approval, consent or withholding of objections is required from any
governmental authority or entity with respect to the entry into or performance
by Lessee of the Documents except such as have already been obtained.

 

(d)         The entry into and performance by Lessee of the Documents will not: (i) violate
any judgment, order, law or regulation applicable to Lessee or any provision of
Lessee’s Certificate of Incorporation or bylaws; or (ii) result in any
breach of, constitute a default under or result in the creation of any lien,
charge, security interest or other encumbrance upon any Equipment pursuant to
any indenture, mortgage, deed of trust, bank loan or credit agreement or other
instrument (other than this Agreement) to which Lessee is a party.

 

(e)          There are no suits or proceedings pending or threatened in court or before
any commission, board or other administrative agency against or affecting
Lessee, which if decided against Lessee will have a material adverse effect on
the ability of Lessee to fulfill its obligations under this Agreement.

 

(f)            The Equipment accepted under any Certificate
of Acceptance is and will remain tangible personal property.

 

 

(g)         Each financial statement delivered to Lessor has been prepared in
accordance with generally accepted accounting principles consistently
applied.  Since the date of the most
recent financial statement, there has been no material adverse change.

 

(h)         Lessee’s exact legal name is as set forth in the first sentence of this
Agreement and Lessee is and will be at all times validly existing and in good
standing under the laws of the State of its incorporation or organization
(specified in the first sentence of this Agreement).

 

(i)             The Equipment will at all times be used for
commercial or business purposes.

 

(j)             Lessee is and will remain in full compliance
with all laws and regulations applicable to it including, without limitation, (i) ensuring
that no person who owns a controlling interest in or otherwise controls Lessee
is or shall be (Y) listed on the Specially Designated Nationals and Blocked
Person List maintained by the Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or
any other similar lists maintained by OFAC pursuant to any authorizing statute,
Executive Order or regulation or (Z) a person designated under Section 1(b),
(c) or (d) of Executive Order No. 13224 (September 23,
2001), any related enabling legislation or any other similar Executive Orders,
and (ii) compliance with all applicable Bank Secrecy Act (“BSA”) laws, regulations and government
guidance on BSA compliance and on the prevention and detection of money
laundering violations.

 

17.            EARLY TERMINATION:

 

(a)          On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule as
of a rent payment date (“Termination Date”).  Lessee must give Lessor at least forty- five
(45) days prior written notice of the termination.

 

(b)         Lessee shall, and Lessor may, solicit cash bids for the Equipment on an
AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express or
implied (“AS IS BASIS”).  Prior to the Termination Date, Lessee shall (i) certify
to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the
Termination Value (calculated as of the rent due on the Termination Date) for
the Equipment, and (B) all rent and other sums due and unpaid as of the
Termination Date.

 

(c)          If all amounts due hereunder have been paid on the Termination Date,
Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the
highest bidder and (ii) refund the proceeds of such sale (net of any
related expenses) to Lessee up to the amount of the Termination Value.  If such sale is not consummated, no
termination shall occur and Lessor shall refund the Termination Value (less any
expenses incurred by Lessor) to Lessee.

 

(d)         Notwithstanding the foregoing, Lessor may elect by written notice, at
any time prior to the Termination Date, not to sell the Equipment.  In that event, on the Termination Date Lessee
shall (i) return the Equipment (in accordance with Section 10) and (ii) pay
to Lessor all amounts required under Section 17(b) less the amount of
the highest bid certified by Lessee to Lessor.

 

18.            PURCHASE OPTION:

 

(a)          Lessee may at lease expiration or at the Early Lease Term Option,
purchase all (but not less than all) of the Equipment in any Schedule on
an AS IS BASIS for cash equal to its then Fair Market Value (plus all
applicable sales taxes).  Lessee must
notify Lessor of its intent to purchase the Equipment in writing at least sixty
(60) days in advance.  If Lessee is in
default or if the Lease has already been terminated Lessee may not purchase the
Equipment.

 

(b)         “Fair Market Value” shall mean the price that a willing buyer (who is
neither a lessee in possession nor a used equipment dealer) would pay for the
Equipment in an arm’s-length transaction to a willing seller under no
compulsion to sell.  In determining the
Fair Market Value the Equipment shall be assumed to be in the condition in
which it is required to be maintained and returned under this Agreement.  If the Equipment is installed it shall be
valued on an installed basis.  The costs
of removal from current location shall not be a deduction from the value of the
Equipment.  If Lessor and Lessee are
unable to agree on the Fair Market Value at least sixty (60) days before lease
expiration, Lessor shall appoint an independent appraiser (reasonably
acceptable to Lessee) to determine Fair Market Value.  The independent appraiser’s determination
shall be final, binding and conclusive. 
Lessee shall bear all costs associated with any such appraisal.

 

(c)          Lessee shall be deemed to have waived this option unless it provides
Lessor with written notice of its irrevocable election to exercise the same
within thirty (30) days after Fair Market Value is told to Lessee.

 

19.            FAIR MARKET VALUE RENTAL
RENEWAL:

 

(a)          So long as no default exists hereunder and the Lease has not been
earlier terminated, Lessee may at lease expiration, upon at least 60 days prior
written notice to Lessor, extend the term of the Lease with respect to all (but
not less than all) of the Equipment in any Schedule for a period of twelve
(12) months (the “Renewal Period”) for a scheduled monthly rental equal to the
monthly Fair Market Rental Value thereof determined as of the end of the
pre-extension Lease term.

 

(b)         “Fair Market Rental Value” shall mean the price which a willing lessee
would pay for the rental of the Equipment in an arms-length transaction to a
willing lessor under no compulsion to lease for a time period similar to the
Renewal Period; provided, however, that in such determination:  (i) the Equipment shall be assumed to be
in the condition in which it is required to be maintained and returned under
this Lease (ii) in the case of any installed additions to the Equipment,

 

 

same
shall be valued on an installed basis; and (iii) costs of removal of the
Equipment from the current location shall not be a deduction from such
valuation.  If Lessor and Lessee are
unable to agree on the Fair Market Rental Value at least 60 days before Lease
expiration, Lessor shall appoint an independent appraiser (reasonably
acceptable to Lessee) to determine Fair Market Rental Value, and that
determination shall be final, binding and conclusive.  Lessee shall bear all costs associated with
any such appraisal.

 

(c)          Lessee shall be deemed to have waived this option unless it provides
Lessor with written notice of its irrevocable election to exercise the same
within 15 days after Fair Market Rental Value is determined (by agreement or
appraisal).

 

20.            MISCELLANEOUS:

 

(a)          LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY
OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING TO
THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE
RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT.  THIS WAIVER IS IRREVOCABLE.  THIS WAIVER MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING.  THE WAIVER ALSO
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT, ANY RELATED DOCUMENTS, OR TO ANY OTHER
DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION.  THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(b)         The Equipment shall remain Lessor’s property unless Lessee purchases the
Equipment from Lessor and until such time Lessee shall only have the right to
use the Equipment as a lessee.  Any
cancellation or termination by Lessor of this Agreement, any Schedule,
supplement or amendment hereto, or the lease of any Equipment hereunder shall
not release Lessee from any then outstanding obligations to Lessor hereunder
except in event of default due to Lessors’s negligence or willful
misconduct.  All Equipment shall at all
times remain personal property of Lessor even though it may be attached to real
property.  The Equipment shall not become
part of any other property by reason of any installation in, or attachment to,
other real or personal property .

 

(c)          Time is of the essence of this Agreement.  Lessor’s failure at any time to require
strict performance by Lessee of any of the provisions hereof shall not waive or
diminish Lessor’s right at any other time to demand strict compliance with this
Agreement.  Lessee agrees, upon Lessor’s
request, to execute, or otherwise authenticate, any document, record or
instrument necessary or expedient for filing, recording or perfecting the
interest of Lessor or to carry out the intent of this Agreement.  In addition, Lessee hereby authorizes Lessor
to file a financing statement and amendments thereto describing the Equipment
described in any and all Schedules now and hereafter executed pursuant hereto
and adding any other collateral described therein and containing any other
information required by the applicable Uniform Commercial Code.  Lessee irrevocably grants to Lessor the power
to sign Lessee’s name and generally to act on behalf of Lessee to execute and
file financing statements and other documents pertaining to any or all of the
Equipment.  Lessee hereby ratifies its
prior authorization for Lessor to file financing statements and amendments
thereto describing the Equipment and containing any other information required
by any applicable law (including without limitation the Uniform Commercial
Code) if filed prior to the date hereof. 
All notices required to be given hereunder shall be deemed adequately
given if sent by registered or certified mail to the addressee at its address
stated herein, or at such other place as such addressee may have specified in
writing.  This Agreement and any Schedule and
Annexes thereto constitute the entire agreement of the parties with respect to
the subject matter hereof.  NO VARIATION
OR MODIFICATION OF THIS AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR
CONDITIONS, SHALL BE VALID UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE PARTIES HERETO.

 

(d)         If Lessee does not comply with any provision of this Agreement, Lessor
shall have the right, but shall not be obligated, to effect such compliance, in
whole or in part.  All reasonable amounts
spent and obligations incurred or assumed by Lessor in effecting such
compliance shall constitute additional rent due to Lessor.  Lessee shall pay the additional rent within
five days after the date Lessor sends notice to Lessee requesting payment.  Lessor’s effecting such compliance shall not
be a waiver of Lessee’s default

 

(e)          Any rent or other amount not paid to Lessor when due shall bear
interest, from the due date until paid, at the lesser of eighteen percent (18%)
per annum or the maximum rate allowed by law. 
Any provisions in this Agreement and any Schedule that are in
conflict with any statute, law or applicable rule shall be deemed omitted,
modified or altered to conform thereto.  
Notwithstanding anything to the contrary contained in this Agreement or
any Schedule, in no event shall this Agreement or any Schedule require the
payment or permit the collection of amounts in excess of the maximum permitted
by applicable law.

 

(f)            Lessee hereby irrevocably authorizes Lessor to
adjust the Capitalized Lessor’s Cost up or down by no more than five percent
(5%) within each Schedule to account for equipment change orders,
equipment returns, invoicing errors, and similar matters.  Lessee acknowledges and agrees that the rent
shall be adjusted as a result of the change in the Capitalized Lessor’s
Cost.  Lessor shall send Lessee a written
notice stating the final Capitalized Lessor’s Cost, if it has changed.

 

(g)         THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO THE CONFLICT OF LAWS
PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT.

 

 

(h)         Any cancellation or termination by Lessor, pursuant to the provisions of
this Agreement, any Schedule, supplement or amendment hereto, of the lease of
any Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder.

 

(i)             To the extent that any Schedule would
constitute chattel paper, as such term is defined in the Uniform Commercial
Code as in effect in any applicable jurisdiction, no security interest therein
may be created through the transfer or possession of this Agreement in and of
itself without the transfer or possession of the original of a Schedule executed
pursuant to this Agreement and incorporating this Agreement by reference; and
no security interest in this Agreement and a Schedule may be created by
the transfer or possession of any counterpart of the Schedule other than
the original thereof, which shall be identified as the document marked “Original”
and all other counterparts shall be marked “Duplicate”.

 

(j)             Each party hereto agrees to keep confidential,
the terms and provisions of the Documents and the transactions contemplated
hereby and thereby (collectively, the “Transactions”).  Notwithstanding the foregoing, the
obligations of confidentiality contained herein, as they relate to the
Transactions, shall not apply to the federal tax structure or federal tax
treatment of the Transactions, and each party hereto (and any employee,
representative, or agent of any party hereto) may disclose to any and all persons,
without limitation of any kind, the federal tax structure and federal tax
treatment of the Transactions.  The
preceding sentence is intended to cause each Transaction to be treated as not
having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or
any successor provision) of the Treasury Regulations promulgated under Section 6011
of the Internal Revenue Code of 1986, as amended, and shall be construed in a
manner consistent with such purpose.  In
addition, each party hereto acknowledges that it has no proprietary or
exclusive rights to the federal tax structure of the Transactions or any
federal tax matter or federal tax idea related to the Transactions.

 

IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement
to be executed by their duly authorized representatives as of the date first
above written.

 

 

	
   

  	
  LESSOR:

  	
  LESSEE:

  	 

	
   

  	
  General
  Electric Capital Corporation

  	
  Momenta
  Pharmaceuticals, Inc.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ John Edel

  	
   

  	
  By:

  	
  /s/ Richard
  P. Shea

  	
   

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
  John Edel

  	
   

  	
  Name:

  	
  Richard P. Shea

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
  SVP

  	
   

  	
  Title:

  	
  VP, CFO & Treasurer

  	
   

  
													

 

 

BIOTECH EQUIPMENT SCHEDULE

SCHEDULE NO. 001

DATED THIS December 30, 2005

TO MASTER LEASE AGREEMENT

DATED AS OF December 30, 2005

 

	
  Lessor &
  Mailing Address:

  	
   

  	
  Lessee &
  Mailing Address:

  
	
   

  	
   

  	
   

  
	
  General Electric Capital
  Corporation

  	
   

  	
  Momenta Pharmaceuticals, Inc.

  
	
  83 Wooster Heights Road 5th
  Floor

  	
   

  	
  675 West Kendall Street

  
	
  Danbury, CT 06810

  	
   

  	
  Cambridge, MA 02142

  

 

This Schedule is
executed pursuant to, and incorporates by reference the terms and conditions
of, and capitalized terms not defined herein shall have the meanings assigned
to them in, the Master Lease Agreement identified above (“Agreement” said Agreement and this Schedule being
collectively referred to as “Lease”).  This
Schedule, incorporating by reference the Agreement, constitutes a separate
instrument of lease.

 

A.                 Equipment:  Subject to the terms and conditions of
the Lease, Lessor agrees to Lease to Lessee the Equipment described below (the “Equipment”).

 

	
  Number

  of Units

  	
   

  	
  Capitalized

  Lessor’s Cost

  	
   

  	
  Manufacturer

  	
   

  	
  Serial
  Number

  	
   

  	
  Model
  and Type of Equipment

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

SEE EXHIBIT A ATTACHED HERETO AND MADE A PART HEREOF

 

B.                 Financial Terms

 

	
  1.

  	
  Advance Rent (if any):
  $34,019.52

  
	
  2.

  	
  Capitalized Lessor’s Cost:
  $ 1,667,159.04

  
	
  3.

  	
  Basic Term (No. of
  Months): 54 Months.

  
	
  4.

  	
  Basic Term Lease Rate
  Factor: 2.0405

  
	
  5.

  	
  Basic Term Commencement
  Date: 12/30/05

  
	
  6.

  	
  Lessee Federal Tax ID No.:
  04-3561634

  
	
  7.

  	
  Last Delivery Date:

  
	
  8.

  	
  Daily Lease Rate Factor:
  .0680

  

 

9.                   First Termination Date:  Not Allowed

 

10.             Interim Rent: 
For the period from and including the Lease Commencement Date to but not
including the Basic Term Commencement Date (“Interim Period”), Lessee shall pay
as rent (“Interim Rent”) for each unit of Equipment, the product of the Daily
Lease Rate Factor times the Capitalized Lessor’s Cost of such unit times the
number of days in the Interim Period. 
Interim Rent shall be due on lease commencement.

 

11.             Basic Term Rent.  Commencing on January 1, 2006 and
on the same day of each month thereafter (each, a “Rent Payment Date”) during
the Basic Term, Lessee shall pay as rent (“Basic Term Rent”) the product of the
Basic Term Lease Rate Factor times the Capitalized Lessor’s Cost of all
Equipment on this Schedule.

 

C.                 Tax Benefits                             Depreciation Deductions:

 

1.                             Depreciation method is the 200 % declining
balance method, switching to straight line method for the 1st taxable year for
which using the straight line method with respect to the adjusted basis as of
the beginning of such year will yield a larger allowance, taking into account
the 30% or 50% special depreciation allowance and basis adjustment under Section 168(k)(1) of
the Code, whichever is applicable.

 

2.                             Recovery Period:  5 years

 

3.                             Basis: 100 % of the Capitalized Lessor’s Cost.

 

 

D.                 Property Tax

PROPERTY TAX NOT APPLICABLE ON EQUIPMENT LOCATED IN MA.

 

Lessor
may notify Lessee (and Lessee agrees to follow such notification) regarding any
changes in property tax reporting and payment responsibilities.

 

E.                   Article 2A Notice

 

IN
ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 2A OF THE UNIFORM COMMERCIAL
CODE AS ADOPTED IN THE APPLICABLE STATE, LESSOR HEREBY MAKES THE FOLLOWING
DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF THE LEASE, (A) THE PERSON(S)
SUPPLYING THE EQUIPMENT IS VARIOUS
(THE “SUPPLIER(S)”), (B) LESSEE
IS ENTITLED TO THE PROMISES AND WARRANTIES, INCLUDING THOSE OF ANY THIRD PARTY,
PROVIDED TO THE LESSOR BY SUPPLIER(S), WHICH IS SUPPLYING THE EQUIPMENT IN
CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE
EQUIPMENT AND (C) WITH RESPECT TO SUCH EQUIPMENT, LESSEE MAY COMMUNICATE
WITH SUPPLIER(S) AND RECEIVE AN ACCURATE AND COMPLETE STATEMENT OF SUCH
PROMISES AND WARRANTIES, INCLUDING ANY DISCLAIMERS AND LIMITATIONS OF THEM OR
OF REMEDIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES
ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE IN ARTICLE 2A AND
ANY RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE WHICH MAY LIMIT
OR MODIFY ANY OF LESSOR’S RIGHTS OR REMEDIES UNDER THE DEFAULT AND REMEDIES SECTION OF
THE AGREEMENT.

 

F.                   Stipulated Loss and
Termination Value Table*

 

SEE
ANNEX D ATTACHED HERETO AND MADE A PART HEREOF.

 

G.                 Modifications and Additions
for This Schedule Only

 

For
purposes of this Schedule only, the Agreement is amended as follows:

 

1.
The DELIVERY, USE AND OPERATION Section subsection (a) of the
Lease shall be deleted and the following substituted in its stead:

 

 The
parties acknowledge that this is a sale/leaseback transaction and the Equipment
is in Lessee’s possession as of the Lease Commencement Date.

 

2.                   BILL OF SALE

 

Lessee, in consideration of the Lessor’s payment of the amount set forth
in B 2. above, which includes any applicable sales taxes (which payment Lessee
acknowledges), hereby grants, sells, assigns, transfers and delivers to Lessor
the Equipment along with whatever claims and rights Seller may have against the
manufacturer and/or Supplier of the Equipment, including but not limited to all
warranties and representations.  At
Lessors request Lessee will use commercially reasonable efforts to cause
Supplier to deliver to Lessor a written statement wherein the Supplier (i) consents
to the assignment to Lessor of whatever claims and rights Lessee may have
against the Supplier, (ii) agrees not to retain any security interest,
lien or other encumbrance in or upon the Equipment at any time, and to execute
such documents as Lessor may request to evidence the release of any such
encumbrance, and (iii) represents and warrants to Lessor (x) that Supplier
has previously conveyed full title to the Equipment to Lessee, (y) that the
Equipment was delivered to Lessee and installation completed, and (z) that the
final purchase price of the Equipment (or a specified portion of such purchase
price) has been paid by Lessee.

 

 

Lessor is purchasing the Equipment for leasing back to Lessee pursuant
to the Lease.  Lessee represents and
warrants to Lessor that (i) Lessor will acquire by the terms of this Bill
of Sale good title to the Equipment free from all liens and encumbrances
whatsoever; (ii) Lessee has the right to sell the Equipment; and (iii) the
Equipment has been delivered to Lessee in good order and condition, and
conforms to the specifications, requirements and standards applicable thereto.

 

Lessee agrees to save and hold harmless Lessor from and against any and
all federal, state, municipal and local license fees and taxes of any kind or
nature (excluding Lessor’s income taxes), including, without limiting the generality
of the foregoing, any and all excise, personal property, use and sales taxes
and from and against any and all liabilities, obligations, losses, damages,
penalties, claims, actions and suits resulting therefrom and imposed upon,
incurred by or asserted against Lessor as a consequence of the sale of the
Equipment to Lessor.

 

3.                   ACCEPTANCE

 

Pursuant to the provisions of the Lease, as it relates to this Schedule,
Lessee hereby certifies and warrants that (i) all Equipment listed above
has been delivered and installed (if applicable); (ii) Lessee has
inspected the Equipment, and all such testing as it deems necessary has been
performed by Lessee, Supplier or the manufacturer; and (iii) Lessee
accepts the Equipment for all purposes of the Lease, the purchase documents and
all attendant documents.

 

 Lessee
does further certify that as of the date hereof (i) Lessee is not in
default under the Lease; (ii) the representations and warranties made by
Lessee pursuant to or under the Lease are true and correct on the date hereof
and (iii) Lessee has reviewed and approves of the purchase documents for
the Equipment, if any.

 

4.                    EQUIPMENT SPECIFIC PROVISIONS

 

The
MAINTENANCE Section of the Lease is amended by adding the following as the
fifth sentence in subsection (a):

 

Lessee
shall, if requested by Lessor, obtain a certificate or service report from the
manufacturer attesting to such condition.

 

Each
reference contained in this Agreement to:

 

 (a) ”Adverse
Environmental Condition” shall refer to (i) the existence or the
continuation of the existence, of an Environmental Emission (including, without
limitation, a sudden or non-sudden accidental or non-accidental Environmental
Emission), of, or exposure to, any substance, chemical, material, pollutant,
Contaminant, odor or audible noise or other release or emission in, into or
onto the environment (including, without limitation, the air, ground, water or
any surface) at, in, by, from or related to any Equipment, (ii) the
environmental aspect of the transportation, storage, treatment or disposal of
materials in connection with the operation of any Equipment or (iii) the
violation, or alleged violation of any statutes, ordinances, orders, rules regulations,
permits or licenses of, by or from any governmental authority, agency or court
relating to environmental matters connected with any Equipment.

 

 (b) ”Affiliate”
shall refer, with respect to any given Person, to any Person that directly or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such Person.

 

 (c) ”Contaminant”
shall refer to those substances which are regulated by or form the basis of
liability under any Environmental Law, including, without limitation, asbestos,
polychlorinated biphenyls (“PCB’s”), and radioactive substances, or other
material or substance which has in the past or could in the future constitute a
health, safety or environmental hazard to any Person, property or natural
resources.

 

 (d) ”Environmental
Claim” shall refer to any accusation, allegation, notice of violation, claim,
demand, abatement or other order on direction (conditional or otherwise) by any
governmental authority or any Person for personal injury (including sickness,
disease or death), tangible or intangible property damage, damage to the
environment or other adverse effects on the environment, or for fines,
penalties or restrictions, resulting from or based upon any Adverse
Environmental Condition.

 

 (e) ”Environmental
Emission” shall refer to any actual or threatened release, spill, emission,
leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching
or migration into the indoor or outdoor environment, or into or out of any of
the

 

 

Equipment,
including, without limitation, the movement of any Contaminant or other
substance through or in the air, soil, surface water, groundwater or property.

 

 (f) ”Environmental
Law” shall mean any federal, foreign, state or local law, rule or
regulation pertaining to the protection of the environment, including, but not
limited to, the Comprehensive Environmental Response, Compensation, and
Liability Act (“CERCLA”) (42 U.S.C. Section 9601 et seq .), the Hazardous
Material Transportation Act (49 U.S.C. Section 1801 et seq .), the Federal
Water Pollution Control Act (33 U.S.C. Section 1251 et seq .), the
Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq .),
the Clean Air Act (42 U.S.C. Section 7401 et seq .), the Toxic Substances
Control Act (15 U.S.C. Section 2601 et seq .), the Federal Insecticide, Fungicide,
and Rodenticide Act (7 U.S.C. Section 1361 et seq .), and the Occupational
Safety and Health Act (19 U.S.C. Section 651 et seq .), as these laws have
been amended or supplemented, and any analogous foreign, federal, state or
local statutes, and the regulations promulgated pursuant thereto.

 

 (g) ”Environmental
Loss” shall mean any loss, cost, damage, liability, deficiency, fine, penalty
or expense (including, without limitation,
reasonable attorneys’ fees, engineering and other professional or expert fees),
investigation, removal, cleanup and remedial costs (voluntarily or
involuntarily incurred) and damages to, loss of the use of or decrease in value
of the Equipment arising out of or related to any Adverse Environmental
Condition.

 

 (h) ”Person”
shall include any individual, partnership, corporation, trust, unincorporated
organization, government or department or agency thereof and any other entity.

 

Lessee
shall fully and promptly pay, perform, discharge, defend, indemnify and hold
harmless Lessor and its Affiliates, successors and assigns, directors,
officers, employees and agents from and against any Environmental Claim or
Environmental Loss.

 

The
provisions of this Schedule shall survive any expiration or termination of
the Lease and shall be enforceable by Lessor, its successors and assigns.

 

 The
MAINTENANCE Section subsection (a) of the Lease shall be amended
by adding the following at the end thereof:

 

RETURN
PROVISIONS:  In addition to the
provisions provided for in the RETURN OF EQUIPMENT Section of the Lease,
and provided that Lessee has elected not to exercise its option to purchase the
Equipment or renew the Lease Lessee shall, at
its expense:

 

 (a) at
least sixty (60  days prior to expiration
or earlier termination of the Lease, upon receiving reasonable notice from
Lessor, use commercially reasonable efforts to provide or use commercially
reasonable efforts to cause the vendor(s) or manufacturer(s) to provide to
Lessor the following documents:  (i) one
set of service manuals, and operating manuals including replacements and/or
additions thereto, such that all documentation is completely up-to-date for the
applicable equipment model;  (ii) one
set of documents, detailing equipment configuration, operating requirements,
maintenance records, and other technical data concerning the set-up and
operation of the Equipment, including replacements and/or additions thereto,
such that all documentation is completely up-to-date;

 

  (b) at
least sixty (60) (days prior to expiration or earlier termination of the Lease,
cause manufacturer’s representative or qualified equipment maintenance
provider, reasonably acceptable to Lessor, (the “Authorized Inspector”) to
perform a comprehensive physical inspection, including testing all material and
workmanship of the Equipment and ensure all Equipment and equipment operations
conform to all applicable local, state, and federal laws, health and safety
guidelines including the then current FDA regulations; and if during such
inspection, examination and test, the Authorized Inspector finds any of the
material or workmanship to be defective or the Equipment not operating within
manufacturer’s specifications and the then current FDA regulations, then Lessee
shall repair or replace such defective material and, after corrective measures
are completed, Lessee will provide for a follow-up inspection of the Equipment
by the Authorized Inspector as outlined in the preceding clause;  Notwithstanding anything contained in this
subsection (b) to the contrary, in no event shall Lessee be required
to repair or replace any defective material or workmanship that (i) arises
from a manufacturer defect, (ii) is the result of reasonable wear and
tear, or in the event new models of such Equipment are on the market, that are
remedied by any such new models.

 

 

 (c) have
each item of Equipment returned with an in-depth field service report customary
in the industry for such Equipment detailing said inspection as outlined in Section (e) above.  The report shall certify that the Equipment has
been properly inspected, examined and tested and is operating within the
manufacturer’s specifications, reasonable wear and tear excepted;

 

 (d) where
reasonably practical, properly remove or treat all rust or corrosion;

 

 (e) where
reasonably practical, properly remove all Lessee installed markings which are
not necessary for the operation, maintenance or repair of the Equipment;

 

5.                   LEASE TERM OPTIONS

 

Early
Lease Term Options

 

The
Lease is amended by adding the following thereto:

 

EARLY
PURCHASE OPTION:

 

(a)  Provided that the Lease has not been earlier terminated and
provided further that Lessee is not in default under the Lease or any other
agreement between Lessor and Lessee, Lessee may, UPON AT LEAST 30 DAYS BUT NO
MORE THAN 270 DAYS PRIOR WRITTEN NOTICE TO LESSOR OF LESSEE’S IRREVOCABLE
ELECTION TO EXERCISE SUCH OPTION, purchase on an AS IS BASIS all (but not less
than all) of the Equipment listed and described in this Schedule on the
rent payment date (the “Early Purchase Date”) which is 48 months from the Basic
Term Commencement Date for a price equal to Twenty-One and One Hundred
Seventy-Five Thousandths percent (21.175%) of the Capitalized Lessor’s Cost
(the “FMV Early Option Price”), plus all applicable sales taxes.

 

Lessor
and Lessee agree that the FMV Early Option Price is a reasonable prediction of
the Fair Market Value (as such term is defined in the PURCHASE OPTION Section subsection (b) of
the Lease hereof) of the Equipment at the time the option is exercisable.  Lessor and Lessee agree that if Lessee makes
any non-severable improvement to the Equipment which increases the value of the
Equipment and is not required or permitted by the MAINTENANCE Section or
the RETURN OF EQUIPMENT Section of the Lease prior to lease expiration,
then at the time of such option being exercised, Lessor and Lessee shall adjust
the purchase price to reflect any addition to the price anticipated to result
from such improvement.  (The purchase
option granted by this subsection shall be referred to herein as the “Early
Purchase Option”.)

 

(b)              If Lessee exercises its Early Purchase with
respect to the Equipment leased hereunder, then on the Early Purchase Date,
Lessee shall pay to Lessor any Rent and other sums due and unpaid on the Early
Purchase Option Date and Lessee shall pay the FMV Early Option Price, plus all
applicable sales taxes, to Lessor in cash.

 

(c)               In the event of any conflict between the
language contained in this Early Purchase Option and the language contained in section 18
of the Lease, the language in this Early Purchase Option shall control.

 

H.                 Payment Authorization

 

You
are hereby irrevocably authorized and directed to deliver and apply the
proceeds due under this Schedule as follows:

 

	
  Company Name

  	
   

  	
  Address

  	
   

  	
  Amount

  	
   

  
	
  Momenta Pharmaceuticals

  	
   

  	
  675 West Kendall Street, Cambridge, MA

  	
   

  	
  $

  	
  1,242,037.08

  	
   

  
	
  General Electric (Adv Rent)

  	
   

  	
  83 Wooster Heights Road, Danbury, CT

  	
   

  	
  $

  	
  25,683.72

  	
  *

  
	
  General Electric (Interim Rent)

  	
   

  	
  83 Wooster Heights Road, Danbury, CT

  	
   

  	
  $

  	
  1,133.98

  	
   

  
	
  Waters Corporation

  	
   

  	
  4559 Payshere Circle, Chicago, IL

  	
   

  	
  $

  	
  398,304.26

  	
   

  

 

*Applied
$8,335.80 from Good Faith Deposit to Advance Rent

 

This
authorization and direction is given pursuant to the same authority authorizing
the above-mentioned financing.

 

 

Except
as expressly modified hereby, all terms and provisions of the Agreement shall
remain in full force and effect.  This Schedule is
not binding or effective with respect to the Agreement or Equipment until
executed on behalf of Lessor and Lessee by authorized representatives of Lessor
and Lessee, respectively.

 

IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to
be executed by their duly authorized representatives as of the date first above
written.

 

 

	
  LESSOR:

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  General
  Electric Capital Corporation

  	
  Momenta
  Pharmaceuticals, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John Edel

  	
   

  	
  By:

  	
  /s/ Richard P.
  Shea

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  John Edel

  	
   

  	
  Name:

  	
  Richard P. Shea

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  SVP

  	
   

  	
  Title:

  	
  Vice
  President, CFO, TreasurerExhibit 10.47

 

SECOND
AMENDMENT TO SUBLEASE

 

THIS SECOND AMENDMENT TO
SUBLEASE (“Second Amendment”) is entered into as of this
21st day of November, 2005 by
and between Vertex Pharmaceuticals
Incorporated (“Sublandlord”)
and Momenta Pharmaceuticals, Inc.
(“Subtenant”).

 

R E C I T A L S

 

A.  Sublandlord and Subtenant entered into a
sublease, dated as of September 14, 2004 in which Sublandlord subleased to
Subtenant that certain real property on the fourth floor and the first floor (“Sublease
Premises”) of the building
located at 675 West Kendall Street, Cambridge, Massachusetts (“Building”), which sublease Sublandlord
and Subtenant amended by a First Amendment to Sublease (“First Amendment”)
dated September 7, 2005 (as amended, “Sublease”); and

 

B.  The Sublease provided in Section 1(b) for
the use of approximately 20,000 rentable square feet located on the third floor
of the Building and defined in the Sublease as the “Temporary Premises” from
the Commencement Date until October 31, 2005 at which time Subtenant was
to vacate the Temporary Premises in accordance with the terms of the Sublease; and

 

C.  Sublandlord has so delivered the Sublease
Premises to Subtenant, but Subtenant desires to continue on a temporary basis
to occupy the Temporary Premises as well as the Sublease Premises and
Sublandlord has agreed to permit such occupancy by further extending the period
of such occupancy by Subtenant of the Temporary Premises on the terms and
conditions set forth herein, as well as revising and confirming other provisions
of the Sublease as set forth herein; and

 

D.  Sublandlord and Subtenant desire to increase
the Sublease Premises by adding space on the fifth floor of the Building on the
terms and conditions set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Sublandlord and
Subtenant, for themselves and their respective successors and assigns, covenant
and agree as follows:

 

1.                                       Extension
of Temporary Premises Demise. 
The date on which Subtenant is obligated to vacate the Temporary
Premises pursuant to Section 1(b) of the Sublease is changed from October 31,
2005 to March 31, 2006 (the “Temporary Premises Expiration Date”).  The Temporary Premises Expiration Date shall
not be extended due to any failure of the Fifth Floor Improvements to be
completed by April 1, 2006 or for any other reason.  Sublandlord shall have reasonable, periodic
access to the Temporary Premises to design and prepare for work at the
Temporary Premises to take place after the Temporary Premises Expiration
Date.  In exercising such right of
access, Sublandlord will not unreasonably interfere with Subtenant’s use of the
Temporary Premises.

 

 

2.                                       Payment
of Temporary Premises Rent. 
Subsection (i) of Schedule 1, “Rent,” is amended to add
in the second column “(provided, however, that if there is no Event of Default
prior to the Temporary Premises Expiration Date, no Rent with respect to the
Temporary Premises shall be due from Subtenant to Sublandlord during the period
commencing November 1, 2005 through the Temporary Premises Expiration
Date)”.

 

3.                                       Definitions. Unless otherwise set
forth in this Second Amendment, all capitalized terms shall have the same
meaning as set forth in the Sublease.

 

4.                                       Effective
Date.
This Second Amendment shall take effect as of the date on which Landlord
consents in writing to this Second Amendment (“Effective Date”).

 

5.                                       Ratification.  The Sublease, as amended hereby, is hereby
ratified, confirmed and deemed in full force and effect in accordance with its
terms.  Each party represents to the
other that such party (a) is currently unaware of any default by the other
party under the Sublease; and (b) has full power and authority to execute
and deliver this Second Amendment and this Second Amendment represents a valid
and binding obligation of such party enforceable in accordance with its terms.

 

6.                                       Multiple
Counterparts.  This Second Amendment may be executed in
multiple counterparts, each of which when so executed and delivered shall be
deemed to be originals and together shall constitute but one and the same
instrument.

 

7.                                       No Offer.  Submission of this instrument for examination
and signature by Subtenant does not constitute an offer to lease or a
reservation of or option for lease, and this instrument is not effective as a
sublease amendment or otherwise until executed and delivered by both
Sublandlord and Subtenant and consented to by Master Landlord.

 

8.                                       Commencement Date.  Sublandlord and Subtenant agree that the
Commencement Date of the Sublease was September 14, 2004 and the Sublease
Premises Rent Commencement Date was August 1, 2005 and have executed the
Commencement Date Agreement attached hereto as Exhibit B.

 

9.                                       Fifth Floor Premises.  Commencing on April 1, 2006 (the “Fifth
Floor Commencement Date”), the Sublease Premises shall be expanded to include
25,131 rentable square feet on the Fifth Floor of the Building and shown on Exhibit C
attached hereto (“Fifth Floor Premises”). 
The Sublease is amended to reflect such expansion by the provisions set
forth in Section 11 below. 
Notwithstanding the foregoing, the Fifth Floor Commencement Date shall
be extended for Sublandlord Delays (as defined in Exhibit E attached
hereto).

 

10.                                 Remeasurement.  Pursuant to Section 1(l) of the
Sublease, Sublandlord has remeasured the Sublease Premises according to the
measurement standards set forth in Section 1(l).  Such remeasurement indicates that the
Sublease Premises as of the date hereof consists of 52,817 rentable square feet
on the fourth floor and 506 rentable square feet on the first floor.

 

11.                                 Amendments to Sublease to
Reflect Remeasurement and Addition of the Fifth Floor Premises. To reflect the changes
made by remeasurement of the Sublease Premises (set out in Section 10
above) and addition of the Fifth Floor Premises to the Sublease Premises (set
out in Section 9 above), the following provisions of the Sublease are
amended, effective as of the Sublease Premises Rent Commencement Date, as
follows:

 

2

 

(a)                                  “Sublease Premises” as defined in the Defined
Terms of the Sublease is amended to read as follows:

 

A portion of the Master Premises, consisting of (i) the
entire fourth floor of the Building comprised of 52,817 rentable square feet as
depicted in Exhibit C-1 and (ii) 506 rentable square feet located on
the first floor of the Building as depicted in Exhibit  C-2.  Commencing
on April 1, 2006 (the “Fifth Floor Commencement Date”), the Sublease
Premises shall be expanded to include 25,131 rentable square feet as depicted
on Exhibit C-3 (the “Fifth Floor
Premises”).  The parties agree that
25,131 rentable square feet is the area of the Fifth Floor Premises and neither
party shall have the right to remeasure the Fifth Floor Premises,
notwithstanding the provision for remeasurement set forth in Section 1(l).  On and after the Fifth Floor Commencement
Date, the Sublease Premises shall consist of 78,454 rentable square feet,
comprised of 52,817 rentable square feet on the fourth floor (after
remeasurement as set forth in the Second Amendment to Sublease), 506 rentable
square feet on the first floor (after remeasurement as set forth in the Second
Amendment to Sublease), and 25,131 rentable square feet on the fifth floor.

 

(b)                                 Schedule 1, Rent, is amended by
replacing the original Schedule 1 with Schedule 1 set forth in Exhibit D
attached to this Second Amendment.  To
the extent Subtenant has not paid any amounts set forth on the schedule as
of the date of this Second Amendment, Subtenant shall do so within twenty (20)
days following the date of this Second Amendment.  Notwithstanding anything in this Second
Amendment (including Exhibit D) to the contrary, no Rent shall be due or
payable with respect to the Fifth Floor Premises until the Fifth Floor Rent
Commencement Date.

 

(c)                                  “Subtenant’s Share” as defined in the Defined
Terms of the Sublease is amended to read as follows:

 

The ratio, expressed as a percentage, of the
Rentable Square Footage of the premises leased by Subtenant to the Rentable
Square Footage of the Master Premises, equal to (i) 6.88% from the
Commencement Date until the day prior to the Sublease Premises Rent
Commencement Date, (ii) 25.22% from the Sublease Premises Rent
Commencement Date through the Temporary
Premises Expiration Date, and (iii) 26.99% thereafter.

 

(d)                                 Section 1(e), Parking, is amended to
revise the parenthetical in the first sentence to read as follows:

 

(e)  Parking.  Prior to the Sublease Premises Rent
Commencement Date, Sublandlord shall rent to Subtenant thirty (30) parking
spaces.  From the Sublease Premises Rent
Commencement Date through October 31, 2005, Sublandlord shall rent to
Subtenant sixty-eight (68) parking spaces. 
On and after November 1, 2005, Sublandlord shall rent to Subtenant
1.5 parking spaces per 1,000 rentable square feet of the Sublease Premises,

 

3

 

excluding the Temporary Premises (i.e. eighty (80)
spaces from the November 1, 2005 until the Fifth Floor Commencement Date,
and one hundred eighteen (118) spaces thereafter).  Subtenant shall pay parking fees at the
prevailing rates for the Complex (currently $225/space/month).  Any additional parking spaces offered to
Subtenant by Sublandlord shall be on terms and conditions as reasonably
determined by Sublandlord, provided that in no instance shall Subtenant be
obligated to pay parking fees greater than the prevailing rates for the
Complex.  At any time when Subtenant
notifies Sublandlord that it wishes additional parking spaces, Sublandlord may
provide such parking spaces if, as and when available as determined in
Sublandlord’s sole discretion. All parking spaces shall be unreserved and
otherwise subject to the terms and conditions of the Master Lease.

 

(e)                                  The first and second paragraphs of the
definition of “Security Deposit” as defined in the Defined Terms of the
Sublease are deleted and replaced with the following:

 

During the initial Sublease Term, $1,777,780,
provided, however, that if the Sublease Premises is additionally expanded in
addition to that described in the Second Amendment (being 78,454 rentable
square feet), the Security Deposit shall be increased by fifty (50%) of the
amount that is equal to the average annual Fixed Rent for such additional
rentable square footage.   If the
Sublease Term is extended pursuant to Section 1(i), the Security Deposit
during the Extension Term shall be fifty (50%) of the amount that is equal to
the average annual Fixed Rent over the Extension Term.

 

Within twenty (20) days after the Effective
Date of this Second Amendment, Subtenant shall deliver to Sublandlord either (i) an
additional letter of credit in the amount of 292,780.00  complying with the terms and conditions of
the Sublease, or (ii) an amendment to Silicon Valley Bank Standby Letter
of Credit No. SVBSF003033 increasing the amount thereunder to
$1,777,780.00, which amendment shall be in form and substance reasonably
satisfactory to Sublandlord.

 

(f)                                    The plan attached to this Second Amendment as
Exhibit C, depicting the Fifth Floor Premises, is added as an additional
exhibit, Exhibit C-3, to the Sublease.

 

(g)                                 As of the execution of this Second Amendment,
Subtenant and its agents, employees, invitees, consultants and contractors
(collectively “Agents”) shall have the right to enter the Fifth Floor Premises
for the sole purpose of space planning, and document preparation in
connection with the Fifth Floor Improvements (as defined below), Subtenant
agreeing that no construction work or installation of any property of any kind
shall be permitted in the Fifth Floor Premises prior to the Effective Date (and
then only in accordance with the following sentence). As of the Effective Date
of this Second Amendment, Subtenant and its Agents shall have the right to
enter the Fifth Floor Premises for the construction of the Fifth Floor
Improvements and installation of furniture, equipment and furnishings in the
Fifth Floor Premises, all at Subtenant’s sole cost (but subject to
Sublandlord’s contribution of the Fifth Floor Allowance (as defined

 

4

 

in Exhibit E attached hereto); provided that Subtenant shall
obtain the consent of Sublandlord and Master Landlord to any Alterations as
required by Section 6 of the Sublease).  Such access shall be subject to all of the
terms and conditions of the Sublease, except that Subtenant shall not be
obligated to pay Fixed Rent or Additional Rent on account thereof until the
Fifth Floor Commencement Date.  Any entry
by Subtenant or any of its Agents pursuant to this Subsection  (g) shall
be undertaken at Subtenant’s sole risk.

 

Subtenant agrees to accept the Fifth Floor Premises
in its current “as is” shell and core condition.  Except for the Fifth Floor Improvement
Allowance, as defined in Exhibit E, any improvements to be made to the
Fifth Floor Premises shall be made at the sole cost of Subtenant and shall be
subject to the provisions of this Sublease governing Alterations.  Fifth Floor Improvements to be made to the
Sublease Premises are discussed in the last paragraph of this subsection below.  Subtenant acknowledges that no rights,
easements or licenses are acquired by Subtenant by implication or otherwise
except as expressly set forth herein. 
Subtenant has inspected or will inspect, prior to delivery of possession
of the Fifth Floor Premises, the Fifth Floor Premises and become thoroughly
acquainted with their condition, excepting any latent defects.  Subtenant acknowledges that the taking of
possession of the Fifth Floor Premises by Subtenant on the Effective Date will
be conclusive evidence that the Fifth Floor Premises were in good and
satisfactory condition at the time such possession was taken, except for any
latent defects. Subtenant specifically agrees that, except as specifically
provided by Laws in force as of the date hereof and except as specifically
provided for herein, Sublandlord has no duty to make any disclosures concerning
the condition of the Building and the Fifth Floor Premises and/or the fitness
of the Building and the Fifth Floor Premises for Subtenant’s intended use and Subtenant
expressly waives any duty which Sublandlord might have to make any such
disclosures.

 

Provisions regarding the initial tenant improvements
to be installed and constructed by Subtenant upon the Fifth Floor Premises and
the allowance for initial tenant improvements to be paid by Sublandlord are
attached as Exhibit E to this Second Amendment (the “Fifth Floor
Improvements”).  Subtenant shall use
reasonable efforts to substantially complete the Fifth Floor Improvements no
later than April 1, 2006 (the “Fifth Floor Improvements Completion Date”).  Subject to Exhibit E, Subtenant shall
submit for Sublandlord’s approval (which approval shall not be unreasonably
withheld) and for Master Landlord’s approval, pursuant to the requirements of
the Master Lease, the preliminary plans and thereafter the final plans and
specifications for the Fifth Floor Improvements.  Subtenant construction of the Fifth Floor
Improvements shall otherwise comply with the terms and conditions of Section 3.3
of the Master Lease, including, but not limited to, Subtenant’s obligation to
remove such Fifth Floor Improvements if required by Master Landlord in
accordance therewith; provided, however, Subtenant shall have no
obligation to remove Fifth Floor Improvements unless the same were identified
for removal at the time Master Landlord gave its consent thereto.  All permanent portions of the Fifth Floor
Improvements installed in the Fifth Floor Premises, including all fixtures and
cabinet work, if any, will be and shall remain the property of Sublandlord.

 

5

 

Subtenant shall have the non-exclusive right, in
common with others entitled thereto, to use for ingress and egress purposes the
stairway shown as “Stair 1” on Exhibit C-3 to the Sublease (a copy of
which is attached to this Second Amendment as Exhibit C).  Sublandlord shall construct, prior to the
Fifth Floor Commencement Date, at Sublandlord’s expense, a common
vestibule/corridor outside the Fifth Floor Premises providing secured access
between the stairway and the Fifth Floor Premises.

 

(h)                                 (i)  Due to the remeasurement of the
Sublease Premises, Sublandlord’s Contribution as set forth in Section 3(b) of
Exhibit TI of the Sublease shall be increased to equal one hundred
sixty-five dollars per rentable square foot for the Sublease Premises as
remeasured (excluding the Temporary Premises and the Fifth Floor Premises) and
Sublandlord waives the requirement that Sublandlord’s Contribution be used for
Subtenant Improvements, also set forth in Section 3(b) of Exhibit TI,
with respect to the Subtenant Improvements on the fourth and first floors
only.  Therefore, within thirty (30) days
following the Effective Date of this Second Amendment, provided there is no
Event of Default at such time, Sublandlord shall pay to Subtenant the amount of
such remaining Sublandlord’s Contribution, being $1,373,295.  (ii)  Sublandlord’s Fifth Floor
Improvement Allowance is set out and defined in Exhibit E.

 

12.                                 Master Landlord Consent.  BMR-675 West Kendall Street LLC, a Delaware
limited liability company, as a successor to Kendall Square, LLC is the Master
Landlord as defined in the Sublease under the Master Lease, also defined in the
Sublease.  Following the parties’
execution of this Second Amendment, Sublandlord shall promptly submit this
Second Amendment to the Master Landlord for its consent.  The effectiveness of this Second Amendment is
conditioned on the consent to this Second Amendment by Master Landlord as
indicated by its execution of this Second Amendment in the space provided below
(or the execution of another consent form reasonably satisfactory to
Sublandlord and Subtenant) on or before November 30, 2005.  In the event Master Landlord fails to respond
to Sublandlord’s request for consent by November 30, 2005, Subtenant shall
not be responsible for hold over rent with respect to the Temporary Premises
until thirty (30) days after Sublandlord sends Subtenant notice requesting that
Subtenant vacate the Temporary Premises.  
In the event Master Landlord affirmatively denies consent, Subtenant
shall not be responsible for hold over rent with respect to the Temporary
Premises for the time period from December 1, 2005 through four (4) days
following such denial, but continued occupancy thereafter shall constitute hold
over with respect to the Temporary Premises only (but not the Sublease
Premises).

 

13.                                 First Floor Premises and
Fourth Floor Premises Replacement Plans.  The plan
attached to this Second Amendment as Exhibit F, depicting the specific
location of that portion of the Sublease Premises located on the fourth floor,
shall replace Exhibit C-1 of the Sublease. 
The plan attached to this Second Amendment as Exhibit G, depicting
the specific location of that portion of the Sublease Premises located on the
first floor, shall replace Exhibit C-2 of the Sublease.

 

14.                                 Amendment to Notice of
Sublease.   At the request of either party, Sublandlord
and Subtenant will execute and record an amendment to the existing notice of
sublease reflecting the changes to the Sublease Premises described herein.

 

6

 

IN WITNESS WHEREOF, the
parties hereto have executed this instrument under seal as of the day and year
first above written.

 

 

	
   

  	
  SUBLANDLORD:

  
	
   

  	
   

  
	
   

  	
  VERTEX
  PHARMACEUTICALS

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth S.
  Boger

  	
   

  
	
   

  	
  Name:

  	
  Kenneth S. Boger

  	
   

  
	
   

  	
  Title:

  	
  Senior VP & General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBTENANT:

  
	
   

  	
   

  
	
   

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard P. Shea

  	
   

  
	
   

  	
   

  	
  Richard P. Shea, its Vice President, Treasurer and

  Chief Financial Officer

  

 

7

 

EXHIBIT A

MASTER LANDLORD CONSENT

 

The undersigned, BMR-675
West Kendall Street LLC, hereby consents to this Second Amendment, subject to
the terms and conditions of that certain Consent to Sublease dated as of September 23,
2004, by and between KS Parcel A, LLC (as predecessor-in-interest to Master
Landlord), Sublandlord and Subtenant.

 

 

	
   

  	
  MASTER
  LANDLORD

  BMR-675 WEST KENDALL
  STREET LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary A. Kreitzer

  
	
   

  	
  Name:

  	
  Gary A. Kreitzer

  
	
   

  	
  Title:

  	
  Executive V.P.

  
	
   

  	
  Date:

  	
  11-21-05

  

 

 

EXHIBIT B

 

EXECUTED COMMENCEMENT DATE AGREEMENT 

 

FOLLOWING THIS PAGE

 

B-1

 

COMMENCEMENT DATE AGREEMENT

 

THIS COMMENCEMENT DATE AGREEMENT (“Agreement”) is
entered into as of this             
day of November, 2005, by and between VERTEX PHARMACEUTICALS INCORPORATED (“Sublandlord”)
and MOMENTA PHARMACEUTICALS, INC. (“Subtenant”).

 

W I T N E S S E T H:

 

1.                                       This Agreement is made pursuant to Section 1(a) of
that certain Sublease dated as of September 14, 2004, between Sublandlord
and Subtenant (the “Sublease”).

 

2.                                       It is hereby stipulated that the Commencement
Date, as defined in the Sublease, is September 14, 2004 and the Term of
the Sublease shall expire on April 30, 2011 as set forth and provided for
in the Sublease.

 

3.                                       It is hereby stipulated that the Sublease
Premises Rent Commencement Date, as defined in the Sublease, is August 1,
2005.

 

IN WITNESS WHEREOF, the parties hereto have executed
this instrument under seal as of the day and year first above written.

 

 

	
   

  	
  SUBLANDLORD:

  
	
   

  	
   

  
	
   

  	
  VERTEX PHARMACEUTICALS

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Kenneth S. Boger

  
	
   

  	
  Name:

  	
   Kenneth S.
  Boger

  
	
   

  	
  Title:

  	
     Senior V.P. & General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBTENANT:

  
	
   

  	
   

  
	
   

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Richard P. Shea

  
	
   

  	
  Name:

  	
   Richard P.
  Shea

  
	
   

  	
  Title:

  	
     VP,
  CFO and Treasurer

  
								

 

1

 

EXHIBIT C

 

EXHIBIT C-3 TO BE ADDED TO THE SUBLEASE

 

Graphic Omitted

 

1

 

EXHIBIT D

 

REVISED SCHEDULE 1 TO THE SUBLEASE

 

Schedule 1

 

Rent

 

Fixed Rent:

 

	
  Premises:

  	
   

  	
  Rental Period:

  	
   

  	
  Annual Rent Per

  Rentable Square

  Foot:

  	
   

  	
  Annual Fixed Rent:

  	
   

  	
  Payable in Monthly

  Installments:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)  Temporary Premises (“Temporary Premises Fixed Rent”)

  	
   

  	
  From the Temporary Premises Rent Commencement Date through the
  Temporary Premises Expiration Date (provided, however, that if there is no
  Event of Default prior to the Temporary Premises Expiration Date, no Rent shall
  be due with respect to the Temporary Premises from Subtenant to Sublandlord
  during the period commencing November 1, 2005 through the Temporary
  Premises Expiration Date)

  	
   

  	
  $45.00

  	
   

  	
  $900,000.00

  	
   

  	
  $75,000.00

  

 

1

 

Fixed Rent:

 

	
  Premises:

  	
   

  	
  Rental Period:

  	
   

  	
  Annual Rent Per

  Rentable Square

  Foot:

  	
   

  	
  Annual Fixed Rent:

  	
   

  	
  Payable in Monthly

  Installments:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)  Sublease Premises (“Sublease Premises Fixed Rent”)

  	
   

  	
  (a)  From the Sublease Premises Rent Commencement Date through March 31,
  2006

  	
   

  	
  $39.00

  	
   

  	
  $2,079,597.00

  	
   

  	
  $173,299.75

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  From April 1, 2006 through April 30, 2006

  	
   

  	
  (i) $39.00 (for the Sublease Premises exclusive of the Fifth
  Floor Premises), and

  	
   

  	
  (i) $2,079,597.00 and

  	
   

  	
  (i) $173,299.75 and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)  $46.00 (for the Fifth Floor Premises)

  	
   

  	
  (ii) $1,156,026.00

  	
   

  	
  (ii) 96,335.50

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  For a total of:

  	
   

  	
  For a total of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $3,235,623.00

  	
   

  	
  $269,635.25

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  From May 1, 2006 through April 30, 2011

  	
   

  	
  (i) $45.00 (for the Sublease Premises exclusive of the Fifth
  Floor Premises), and

  	
   

  	
  (i) $2,399,535.00 and

  	
   

  	
  (i) $199,961.25 and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii) $46.00 (for the Fifth Floor Premises)

  	
   

  	
  (ii) $1,156,026.00

  	
   

  	
  (ii) 96,335.50

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  For a total of:

  	
   

  	
  For a total of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $3,555,561.00

  	
   

  	
  296,296.75

  

 

2

 

EXHIBIT E

 

FIFTH FLOOR IMPROVEMENTS
WORK LETTER

 

Sublandlord
and Subtenant agree as follows with respect to the improvements to be installed
in the Fifth Floor Premises:

 

1.                                       INTENTIONALLY OMITTED.

 

2.                                       SUBTENANT IMPROVEMENTS.

 

A.                                   Subtenant’s Architect and Engineer. 
Subtenant’s architect shall be R. E. Dinneen Architects &
Planners, Inc. and Subtenant’s engineer shall be AHA Consulting
Engineers.  Sublandlord hereby approves
such architect and engineer for the design of the Fifth Floor
Improvements.  Notwithstanding the
foregoing, Subtenant may, at its option, retain an architect or engineer other
than those listed above, subject to Sublandlord’s reasonable approval, which
approval shall not be unreasonably withheld or conditioned and shall be granted
or denied by Sublandlord within five (5) business days after Subtenant has
submitted the proposed alternative architect or engineer to Sublandlord.

 

B.                                     Construction Documents. 
Subtenant shall prepare, or cause to be prepared, preliminary drafts of
construction drawings and specifications (the “Construction Documents”) for all
improvements desired by Subtenant in the Fifth Floor Premises, which shall
include, as applicable and without limitation, communications and data cabling,
roof-mounted antennae and/or satellite dishes, lab space, millwork, cabinetry,
woodwork, interior and exterior signage, and customized fixtures, and submit
the Construction Documents to Sublandlord and Master Landlord.  The Construction Documents shall include (i) architectural
drawings and specifications for Subtenant’s partition layout, reflected
ceiling, telephone, data and electrical outlets, and finish schedule; and (ii) mechanical
plans and specifications where necessary for installation of the heating,
ventilation and air-conditioning system and ductwork and electrical, security,
life safety and data/telecommunications facilities.  Subtenant shall be responsible for the costs
and expenses of Subtenant’s architect or engineer in connection with
preparation of the Construction Documents, subject, however, to reimbursement
of such costs and expenses from the Fifth Floor Improvement Allowance (as
defined below).

 

C.                                     Sublandlord’s Approval.  The
Construction Documents shall be subject to Sublandlord’s and Master Landlord’s
approval, which shall not be unreasonably withheld or conditioned subject to
the terms of the Master Lease.   Within
ten (10) business days after delivery of a complete set of the
Construction Documents to Sublandlord, Sublandlord shall, in writing, either
approve such Construction Documents or notify Subtenant of the specific item(s)
of such Construction Documents of which Sublandlord disapproves and a detailed
description of the reason(s) for such disapproval.  If Sublandlord fails to deliver its approval
or disapproval within such ten (10) business days, Sublandlord will be
deemed to have approved the Construction Documents. If Sublandlord disapproves
any of the Construction Documents, within ten (10) business days after
receipt of Sublandlord’s disapproval notice, Subtenant shall revise and
resubmit same to Sublandlord for approval, which approval shall not be
unreasonably withheld or conditioned (the “Revised Construction Documents”).  If Sublandlord does not respond to the

 

1

 

Construction
Documents or the Revised Construction Documents within ten (10) business
days after receipt of same, such drawings shall be deemed approved as most
recently submitted.  The above process
shall be repeated until such time as Sublandlord has approved or is deemed to
have approved the Revised Construction Documents.  Sublandlord agrees to use its best efforts to
conclude final preparation and approval of the Revised Construction Documents
within thirty (30) days after the date on which the Construction Documents are
initially submitted by Subtenant to Sublandlord.

 

D.                                    Final Construction Documents and Other
Information.  The Construction Documents or the Revised Construction
Documents, as approved (or deemed approved) by Sublandlord and Master Landlord,
are hereinafter referred to as the “Final Construction Documents.” Subtenant
may request changes to the Final Construction Documents.  Any changes shall be subject to Sublandlord’s
and Master Landlord’s approval, which approval shall not be unreasonably
withheld or delayed pursuant to the terms of the Master Lease, to the extent
Sublandlord’s approval was originally required with respect thereto pursuant to
Section 2.C above.

 

Subtenant
shall submit to Sublandlord and Master Landlord in writing the following
information at least seven (7) days prior to the commencement of
construction of the Fifth Floor Improvements:

 

(i)                                     The name and address of Subtenant’s general
contractor (“Subtenant’s General Contractor”) and the names of the plumbing,
mechanical and electrical subcontractors, if any, which such Subtenant’s
General Contractor intends to engage in the construction of the Fifth Floor
Improvements.  All such contractors shall
be subject to Sublandlord’s and Master Landlord’s reasonable prior written
approval which approval shall not be unreasonably withheld or delayed;
provided, however, Sublandlord hereby pre-approves the following general
contractor:  William A. Berry &
Sons, Inc.

 

(ii)                                  Certificates of insurance evidencing the
insurance required under Section 2.G hereof.

 

If Master Landlord requires the purchase of payment
or performance bonds in connection with the construction of the Fifth Floor
Improvements, Subtenant will pay the costs associated therewith and will not
charge any portion of such costs to Sublandlord.

 

E.                                      Subtenant’s Covenants. 
Subtenant shall cause all work required to complete the Subtenant
improvements to be performed in accordance with the Final Construction
Documents (the “Fifth Floor Improvements”). 
All required building and other permits in connection with the
construction and completion of the Fifth Floor Improvements shall be obtained
and paid for by Subtenant, subject to reimbursement of such costs from the
Fifth Floor Improvement Allowance.

 

F.                                      Sublandlord’s Covenants. 
Subtenant and Subtenant’s General Contractor, at the expense of
Subtenant or Subtenant’s General Contractor, subject to reimbursement of such
costs from the Fifth Floor Improvement Allowance, shall be allowed to utilize
power, water and other existing utility facilities as necessary and required in
connection with construction of the Fifth Floor

 

2

 

Improvements
in the Fifth Floor Premises.  In
addition, Subtenant and Subtenant’s General Contractor shall be allowed to
utilize on a non-exclusive basis the Building’s freight elevator and loading
docks in connection with construction of the Fifth Floor Improvements in the
Fifth Floor Premises at the expense of Subtenant or Subtenant’s General
Contractor, subject to reimbursement of such costs from the Fifth Floor
Improvement Allowance.  Subtenant agrees
to coordinate use of the freight elevator and loading docks with Sublandlord.

 

G.                                     Insurance.  Subtenant shall provide, or
shall cause Subtenant’s General Contractor to provide, insurance which satisfy
the requirements of Section 8 of the Sublease, shall include (if permitted
by the insurer) a waiver of subrogation in favor of Sublandlord as provided in Section 8
of the Sublease, and shall insure Sublandlord and Master Landlord and
Subtenant, as their respective interests may appear.

 

H.                                    Indemnification. 
EXCEPT TO THE EXTENT SUCH COSTS, LOSSES, LIABILITIES OR ACTIONS RESULT
FROM SUBLANDLORD’S NEGLIGENCE AND/OR WILLFUL MISCONDUCT, SUBTENANT SHALL
INDEMNIFY AND HOLD SUBLANDLORD HARMLESS FROM AND AGAINST ALL COSTS (INCLUDING
REASONABLE ATTORNEY’S FEES AND COSTS OF SUIT), LOSSES, LIABILITIES OR CAUSES OF
ACTION ARISING OUT OF OR RELATING TO SUBTENANT’S CONSTRUCTION OF THE FIFTH
FLOOR IMPROVEMENTS, INCLUDING, BUT NOT LIMITED TO, ANY MECHANIC’S OR
MATERIALMEN’S LIENS ASSERTED IN CONNECTION THEREWITH.

 

I.                                         Project Timing. 
Subtenant shall use reasonable efforts to substantially complete the
Fifth Floor Improvements no later than April 1, 2006.  Each party shall timely perform its
obligations as set forth herein, subject to any Sublandlord Delays, delays by
Master Landlord, or arising from Force Majeure. When used herein, “Force
Majeure” shall mean any prevention, delay or stoppage due to governmental
regulation, strikes, lockouts, acts of God, acts of war, terrorists acts, civil
commotions, unusual scarcity of or inability to obtain labor or materials,
labor difficulties, casualty or other causes reasonably beyond such party’s
control or attributable to the other party’s action or inaction.

 

J.                                        Cooperation.  During the entire course of
the construction process, Subtenant and Sublandlord each shall respond to
requests for information or decisions with reasonable dispatch.  Without limiting the foregoing, each party
shall cooperate with the other to facilitate and expedite the efficient design
and construction of the Fifth Floor Improvements.

 

K.                                    Substantial Completion. 
Within ten (10) days after Substantial Completion (as defined
below) of the Fifth Floor Improvements, Sublandlord and Subtenant shall
acknowledge in writing that the Fifth Floor Improvements were constructed in
accordance with the “as built” plans provided by Subtenant (or indicate any
known discrepancies).  “Substantial
Completion” means that construction has been sufficiently completed such that
the Fifth Floor Premises can be occupied and used to conduct Subtenant’s
business without interference.

 

L.                                      Sublandlord Delays.  As
used herein, “Sublandlord Delays” shall mean any failure by Sublandlord to act,
where it had a duty to do so), and delays caused by Sublandlord’s negligence

 

3

 

or
willful misconduct, which shall cause or contribute to (but only to the extent
of such contribution) a delay in the Substantial Completion of the Fifth Floor
Improvements.

 

3.                                       ALLOWANCES.

 

A.                                   Allocation of Costs.  In
connection with the construction of the Fifth Floor Improvements, Sublandlord
shall provide Subtenant with an allowance to pay some or all Costs of
Construction (as defined below) up to $3,518,340 Dollars (the “Fifth Floor
Improvement Allowance”).  Prior to
commencing construction of the Fifth Floor Improvements, Subtenant shall submit
copies of final construction budgets, and contracts showing the Costs of
Construction.  Subtenant shall bear all
Costs of Construction in excess of the Fifth Floor Improvement Allowance (the “Subtenant’s
Excess Cost”).  Based on the
documentation submitted by Subtenant prior to the commencement of construction,
in the event such documentation indicates that the Costs of Construction will
exceed the amount of the Fifth Floor Improvement Allowance, Subtenant and
Sublandlord shall share the Costs of Construction, up to full disbursement of
the Fifth Floor Improvement Allowance, on a pari passu
basis and, after full disbursement of the Fifth Floor Improvement Allowance,
Subtenant shall be solely responsible for the remaining Costs of Construction,
on a monthly basis as such excess costs are incurred over the course of
construction of the Fifth Floor Improvements. 
Subtenant shall bear all costs of, and be solely responsible for,
installation of its telephone system, computer cabling, trade fixtures,
furniture, furnishings, and personal property to the extent not specifically
provided in the Plans.

 

As
used in this Lease, the phrase “Costs of Construction” means all costs and
expenses incurred in connection with design and construction of the Fifth Floor
Improvements, including, without limitation, space planning, architectural and
engineering fees and expenses for preparation of the Construction Documents,
Revised Construction Documents and the Final Construction Documents and any
approved changes thereto; permit and inspection fees; amounts paid to
contractors, subcontractors and material suppliers; premiums for insurance and
bonds, costs of utilities, equipment rental, labor, materials and supplies, and
sales taxes thereon; and any third-party construction and/or project management
fees.

 

All
of the Fifth Floor Improvements paid for by Sublandlord may be depreciated by
Sublandlord.

 

B.                                     Payment of Allowances. The Fifth Floor Improvement Allowance shall
be allocated and applied as follows:

 

(i)                                     Sublandlord shall make disbursements from the
Fifth Floor Improvement Allowance for payment for space planning,
architectural, engineering and project/construction management fees and costs
incurred in connection with the preparation of the Construction Documents,
Revised Construction Documents and the Final Construction Documents and
project/construction management, based upon the percentage of completion of
such construction documents or services furnished, as the case may be, and
subject to Sublandlord’s receipt of lien releases and waivers for payments
made, updated change order summaries, and updated project schedules
(collectively, “Draw Documentation”), such payment to be made within thirty
(30) days

 

4

 

following
receipt of a draw request for disbursement and applicable Draw Documentation
from Subtenant and Subtenant’s architect, engineers, and project/construction
manager, as the case may be.

 

(ii)                                  Sublandlord shall make disbursements from the
Fifth Floor Improvement Allowance for the payment of Costs of
Construction.  Within thirty (30) days
after the date on which Subtenant’s General Contractor submits a periodic draw
request for payment of Costs of Construction (each a “Construction Payment”),
as certified by Subtenant’s architect, Sublandlord shall be obligated to
reimburse Subtenant for Sublandlord’s share of each such Contractor Payment (to
the extent certified by Subtenant’s architect) paid by Subtenant to Subtenant’s
General Contractor until the balance of the Fifth Floor Improvement Allowance
has been fully utilized.  For purposes
hereof, Sublandlord’s share shall be equal to the amount of the applicable
Construction Payment less retainage in the amount provided under the
construction contract between Subtenant and Subtenant’s General Contractor, but
in no event less than five percent (5%) of the applicable Construction Payment,
(a “Sublandlord Payment”), which Sublandlord Payment shall be made by
Sublandlord from the Fifth Floor Improvement Allowance and shall not exceed in
the aggregate the then unadvanced portion of the Fifth Floor Improvement
Allowance.  Sublandlord shall hold all
retainage amounts until Substantial Completion and thereafter release to
Subtenant said retainage less amounts, if any, for incomplete work or unsettled
claims.  All payments of the Fifth Floor
Improvement Allowance, including the release of any retainage amounts, shall be
made to Subtenant within thirty (30) days after Sublandlord’s receipt of an
invoice from Subtenant requesting funding of such costs and expenses, which
invoice shall include the architects’ certification and documentation
reasonably acceptable to Sublandlord and Sublandlord’s construction lender (if
any) to confirm payment of such costs and expenses, together with a copy of the
draw request and all supporting information and partial lien waivers and
releases from Subtenant, Subtenant’s General Contractor and subcontractors with
contracts in excess of $10,000.00.

 

C.                                     Unused Allowances.  In
the event Subtenant does not utilize all of the Fifth Floor Improvement
Allowance by June 30, 2006 (as evidenced by Subtenant’s submission of  a completed draw request for the unused
portion of the Fifth Floor Allowance), which date shall be extended by Force
Majeure, the unused portion of the Fifth Floor Improvement Allowance shall
remain in the possession of Sublandlord and shall not be credited against
Subtenant’s payments of Fixed Rent and other charges first becoming due under
this Sublease.  Notwithstanding the
foregoing,  amounts which have been
retained by Sublandlord for incomplete work (including, without limitation,
punch-list) and unsettled claims shall be released by Sublandlord upon
completion of such work or settlement of such claims, as the case may be.

 

D.                                    Ingress and Egress.  All
persons and entities performing work in or supplying materials to the Fifth
Floor Premises on behalf of Subtenant shall use only those service corridors
and service entrances designated by Sublandlord for ingress and egress of
personnel, and the delivery and removal of equipment and material through or
across any common areas of the Building shall only be permitted with the
written approval of Sublandlord, not to be unreasonably withheld, and during
hours reasonably determined by Sublandlord. 
Sublandlord shall have the right to order Subtenant or any person or
entity who violates the above requirements to cease work and to remove itself,
its equipment and its employees from the Fifth Floor Premises.

 

5

 

E.                                      Rules and Regulations. 
Subtenant, its agents, employees and contractors shall abide by the rules of
the Building applicable to all contractors and others in or upon the Building
or the Fifth Floor Premises and shall coordinate and schedule their access
to the Fifth Floor Premises for labor and materials delivery through
Sublandlord’s contractor, or if so directed by Sublandlord, the managing agent
for the Building.

 

F.                                      Lease Terms Applicable.  All
work to be performed pursuant to this Exhibit E shall be subject to the
terms and provisions of the Sublease and Master Lease.

 

G.                                     No Additional Agreement. 
Except as expressly set forth herein, Sublandlord has no other agreement
with Subtenant and has no other obligation to do any other work or pay any
amounts with respect to the Fifth Floor Premises.  Any other work in the Fifth Floor Premises
which may be permitted by Sublandlord pursuant to the terms and conditions of
the Sublease shall be done at Subtenant’s sole cost and expense and in
accordance with the terms and conditions of the Sublease.

 

H.                                    Applicability.  This
Exhibit E shall not be deemed applicable to any additional space added to
the original Fifth Floor Premises at any time or from time to time, whether by
any options under the Sublease or otherwise, or to any portion of the original
Fifth Floor Premises or any additions thereto in the event of a renewal or
extension of the initial term of the Sublease, whether by any options under the
Sublease or otherwise, unless expressly so provided in the Sublease or any
amendment or supplement thereto.

 

4.                                       MISCELLANEOUS.

 

A.                                   Representatives. 
Sublandlord hereby appoints Alfred Vaz, Jr. of Sublandlord (“Sublandlord’s
Representative”) to act as the Sublandlord’s Representative in all matters
covered by this Workletter.  Subtenant
hereby appoints Richard P. Shea of Subtenant (“Subtenant’s Representative”) to
act as Subtenant’s Representative in all matters covered by this
Workletter.  All inquiries, requests,
instructions, authorizations and other communications with respect to the
matters covered by this Workletter will be made to Sublandlord’s Representative
or Subtenant’s Representative, as the case may be.  Either party may change its representative
under this Workletter at any time by giving ten (10) days written notice
to the other party delivered in accordance with the notice provisions of this
Lease.

 

B.                                     Intentionally Omitted.

 

C.                                     Incorporation.                    The exculpatory provisions set forth in the
Sublease and Sublease as well as all other terms and provisions of the Sublease
and Sublease, insofar as they are applicable to this Exhibit E are hereby
incorporated herein by this reference.

 

D.                                    Cooperation.    Subtenant and Sublandlord
shall cooperate with the other’s architect, engineer or space planner as
promptly as possible and in any event in sufficient time to cause the Working
Plans to be prepared and timely delivered as hereinabove required.

 

6

 

E.                                      No Representations. 
Neither review nor approval by Sublandlord of any of the Working Plans
shall constitute a representation or warranty by Sublandlord that such Working
Plans either (i) are complete or suitable for their intended purpose or (ii) comply
with applicable laws, ordinances, codes and regulations, it being expressly
agreed by Subtenant that Sublandlord assumes no responsibility or liability
whatsoever to Subtenant or to any other person or entity for such completeness,
suitability or compliance. Subtenant shall be solely responsible to determine
at the site all dimensions of the Fifth Floor Premises and the Building which
affect any work that may be performed by Subtenant or any of Subtenant’s
contractors hereunder.

 

F.                                      Interpretation.  The headings used in this Work Letter are for
convenience and reference use only, and are not to be considered in the
construction or interpretation of this Work Letter.  The parties agree that each party and its
legal counsel has reviewed or has had the opportunity to review this Work
Letter and that any rule of construction to the effect that ambiguities
are to be resolved against the drafting party shall not apply in any
construction or interpretation of this Work Letter.  All defined terms herein shall be so defined
for the purposes of this Exhibit E.

 

7

 

EXHIBIT F

 

REPLACEMENT TO EXHIBIT C-1

 

Graphic Omitted

 

1

 

EXHIBIT G

 

REPLACEMENT TO EXHIBIT C-2

 

Graphic Omitted

 

1

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