Document:

Exhibit 10.1

 

SOVEREIGN BANK — LOAN NO. 17003864 (REVOLVING CREDIT FACILITY)

SOVEREIGN BANK — LOAN NO. 17025057 (TERM LOAN FACILITY — TRANCHE C)

 

THIRD AMENDMENT TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

AND AMENDMENT TO AMENDED AND RESTATED PROMISSORY NOTE

 

THIS THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT AND AMENDMENT TO AMENDED AND RESTATED PROMISSORY NOTE (this “Amendment”) dated as of AUGUST 31, 2011 (the “Effective Date”), but effective with respect to Section 2, Section 6 and Section 9 below as of SEPTEMBER 16, 2011, is by and between SOVEREIGN BANK, a Texas state bank (together with its successors and assigns, “Lender”) and TGC INDUSTRIES, INC., a Texas corporation (“Debtor”).

 

RECITALS

 

WHEREAS, Debtor and Lender entered into that certain AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated as of SEPTEMBER16, 2009 (as amended, modified, and restated from time to time, the “Agreement”), pursuant to which Lender agreed to make certain credit facilities available to Debtor on the terms and conditions set forth therein; and

 

WHEREAS, Debtor has executed and delivered to Lender that certain AMENDED AND RESTATED PROMISSORY NOTE dated as of SEPTEMBER 16, 2009 (as amended, modified, and restated from time to time, the “Revolving Credit Note”) in the principal amount of FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00); and

 

WHEREAS, the parties desire to amend the Agreement pursuant to the terms and conditions set forth herein;

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Defined Terms.   Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby. Notwithstanding the foregoing, Section 1(n) of the Agreement is hereby amended in its entirety to read as follows:

 

(n)           “Note”  means, individually and collectively, any promissory note (including, but not limited to, (i) the AMENDED AND RESTATED PROMISSORY NOTE dated as of SEPTEMBER 16, 2009 in the principal amount of FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00) executed by Debtor and payable to the order of Lender (as such promissory note may be amended, modified or restated from time to time, the “Revolving Credit Note”), (ii) the PROMISSORY NOTE dated as of SEPTEMBER 16, 2010 in the principal amount of ONE MILLION NINE HUNDRED EIGHTY- EIGHT THOUSAND NINE HUNDRED TEN AND NO/100 DOLLARS ($1,988,910.00) executed by Debtor and payable to the order of Lender (as such promissory note may be amended, modified or restated from time to time, the “Term Note — Tranche A”),  (iii) the PROMISSORY NOTE dated as of DECEMBER 30, 2010 in the principal amount of TWO MILLION NINE HUNDRED EIGHTY-SIX THOUSAND TWO HUNDRED AND NO/100 DOLLARS ($2,986,200.00) executed by Debtor and payable to the order of Lender (as such promissory note may be amended, modified or restated from time to time, the “Term Note — Tranche B”), and (iv) the PROMISSORY NOTE dated as of AUGUST 31, 2011 in the principal amount of SIX MILLION SEVEN HUNDRED SIXTY-FIVE THOUSAND SIX HUNDRED NINETEEN AND 22/100 DOLLARS ($6,765,619.22) executed by Debtor and payable to the order of Lender (as such promissory note may be amended, modified or restated from time to time, the “Term Note — Tranche C”)).

 

THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

AND AMENDMENT TO AMENDED AND RESTATED PROMISSORY NOTE

SOVEREIGN BANK – TGC INDUSTRIES, INC.

 

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2.             Amendment to Section 2(a) of Agreement.    Effective as of SEPTEMBER 16, 2011, Section 2(a) of the Agreement is hereby amended in its entirety to read as follows:

 

(a)           Establishment of Credit Facility. Subject to the terms and conditions set forth in this Agreement and the other Loan Documents, Lender hereby agrees to lend to Debtor an aggregate sum not to exceed the lesser of (i) an amount equal to the Borrowing Base, or (ii) FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00) (the “Revolving Credit Facility”), on a revolving basis from time to time during the period commencing on the date hereof and continuing until: (i) the acceleration of the Indebtedness pursuant to the terms of the Loan Documents; (ii) SEPTEMBER 16, 2012; or (iii) such other date as may be established by a written instrument between Debtor and Lender from time to time (the “Revolving Credit Maturity Date”). If at any time the sum of the aggregate principal amount of Loans outstanding hereunder exceeds lesser of the Revolving Credit Facility or the Borrowing Base, such amounts shall be deemed an “Overadvance.” Debtor shall immediately repay the amount of such Overadvance plus all accrued and unpaid interest thereon upon written demand from Lender. Notwithstanding anything contained herein to the contrary, an Overadvance shall be considered a Loan and shall bear interest at the Rate as set forth in the Revolving Credit Note and be secured by this Agreement. Subject to the terms and conditions hereof, Debtor may borrow, repay and reborrow funds under the Revolving Credit Facility.

 

3.             Amendment to Section 2(c) of Agreement.  Section 2(c) of the Agreement is hereby amended in its entirety to read as follows:

 

(c)           Term Loan Facilities. Subject to the terms and conditions set forth in this Agreement and the other Loan Documents, (x) Lender hereby agrees to lend to Debtor in a single advance an aggregate sum not to exceed ONE MILLION NINE HUNDRED EIGHTY-EIGHT THOUSAND NINE HUNDRED TEN AND NO/100 DOLLARS ($1,988,910.00) (the “Term Loan Facility — Tranche A”) on SEPTEMBER 16, 2010 and continuing until: (i) the acceleration of the Indebtedness pursuant to the terms of the Loan Documents; (ii) SEPTEMBER 16, 2013; or (iii) such other date as may be established by a written instrument between Debtor and Lender from time to time (the “Term Maturity Date — Tranche A”),  (y) Lender hereby agrees to lend to Debtor in a single advance an aggregate sum not to exceed TWO MILLION NINE HUNDRED EIGHTY-SIX THOUSAND TWO HUNDRED AND N0/100 DOLLARS ($2,986,200.00) (the “Term Loan Facility — Tranche B”) on DECEMBER 30, 2010 and continuing until: (i) the acceleration of the Indebtedness pursuant to the terms of the Loan Documents; (ii) DECEMBER 30, 2013; or (iii) such other date as may be established by a written instrument between Debtor and Lender from time to time (the “Term Maturity Date — Tranche B”),  and (z) Lender hereby agrees to lend to Debtor in a single advance an aggregate sum not to exceed SIX MILLION SEVEN HUNDRED SIXTY-FIVE THOUSAND SIX HUNDRED NINETEEN AND 22/100 DOLLARS ($6,765,619.22) (the “Term Loan Facility — Tranche C,”  and together with the Term Loan Facility — Tranche A and the Term Loan Facility — Tranche B, the “Term Loan Facility”) on AUGUST 31, 2011 and continuing until: (i) the acceleration of the Indebtedness pursuant to the terms of the Loan Documents; (ii) AUGUST 31, 2014; or (iii) such other date as may be established by a written instrument between Debtor and Lender from time to time (the “Term Maturity Date — Tranche C”).

 

4.             Amendment to Section 3 of Agreement.  Section 3 of the Agreement is hereby amended in its entirety to read as follows:

 

3.             Promissory Notes, Rate and Computation of Interest.    (i) the Revolving Credit Facility shall be evidenced by the Revolving Credit Note, (ii) the Term Loan Facility — Tranche A shall be evidenced by the Term Note — Tranche A, (iii) the Term Loan Facility — Tranche B shall be evidenced by the Term Note — Tranche B, and (iv) the Term Loan Facility — Tranche C shall be evidenced by the Term Note — Tranche C. Interest on each Note shall accrue at the rates set forth therein. The principal of and interest on each Note shall be due and payable in accordance with the terms and conditions set forth in such Note and in this Agreement.

 

5.             Addition of Section 7(q) to Agreement.  Section 7(q) is hereby added to the Agreement in the correct alphabetical order as follows:

 

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7(q)         Change In Control. Debtor shall not permit any change in Control of Debtor, whether by sale, acquisition, merger or otherwise, unless Lender has been given FIFTEEN (15) days prior written notice of such event and has given its written consent (which consent shall not be unreasonably withheld, conditioned or delayed) to such event.

 

6.             Addition of Section 12(k) to Agreement. Effective as of SEPTEMBER 16, 2011,  Section 12(k) is hereby added to the Agreement in the correct alphabetical order as follows:

 

(k)           Change in Control. A change in Control shall have occurred (measured by comparison to the Control of Debtor as of SEPTEMBER 16, 2011).

 

7.             Grant of Security Interest. Lender and Debtor agree that (a) a separate and distinct portion of the Collateral shall secure the Revolving Credit Facility, and (b) a separate and distinct portion of the Collateral shall secure the Term Loan Facility. Accordingly, as collateral security for the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Indebtedness arising under the Revolving Credit Facility, Debtor hereby re-pledges to and re-grants Lender, a security interest in, all of Debtor’s right, title and interest in the Collateral described in Sections 1(d)(i), (iii) and (iv) of the Agreement, whether now owned by Debtor or hereafter acquired and whether now existing or hereafter coming into existence. As collateral security for the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Indebtedness arising under the Term Loan Facility, Debtor hereby pledges to and grants Lender, and re-pledges to and re-grants Lender, a security interest in, all of Debtor’s right, title and interest in the Collateral described in Section 1(d)(ii), (iii) and (iv) of the Agreement, whether now owned by Debtor or hereafter acquired and whether now existing or hereafter coming into existence.

 

8.             Amendment to Exhibit 1(d) to Agreement.  Exhibit 1(d) to the Agreement is hereby amended in its entirety in the form of Exhibit 1(d) attached hereto.

 

9.             Extension of Maturity Date of Revolving Credit Note. Effective as of SEPTEMBER 16, 2011,  the term “Maturity Date” as used in the Revolving Credit Note shall mean: “the earlier of (i) the acceleration of the Indebtedness pursuant to the terms of the Loan Documents; (ii) SEPTEMBER 16, 2012;  or (iii) such other date as may be established by a written instrument between Debtor and Lender from time to time.”

 

10.           Conditions Precedent. The obligations of Lender under this Amendment shall be subject to the condition precedent that Debtor shall have executed and delivered to Lender this Amendment and such other documents and instruments incidental and appropriate to the transaction provided for herein as Lender or its counsel may reasonably request, including, without limitation, the Term Note — Tranche C.

 

11.           Payment Expenses. Debtor agrees to pay all reasonable attorneys’ fees of Lender in connection with the drafting and execution of this Amendment.

 

12.           Ratifications. Except as expressly modified and superseded by this Amendment, the Agreement and the other Loan Documents are ratified and confirmed and continue in full force and effect. The Loan Documents, as modified by this Amendment, continue to be legal, valid, binding and enforceable in accordance with their respective terms. Without limiting the generality of the foregoing, Debtor hereby ratifies and confirms that all liens heretofore granted to Lender were intended to, do and continue to secure the full payment and performance of the indebtedness arising under the Loan Documents. Debtor agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file and record such additional assignments, security agreements, modifications or agreements to any of the foregoing, and such other agreements, documents and instruments as Lender may reasonably request in order to perfect and protect those liens and preserve and protect the rights of Lender in respect of all present and future collateral. The terms, conditions and provisions of the Loan Documents (as the same may have been amended, modified or restated from time to time) are incorporated herein by reference, the same as if stated verbatim herein.

 

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13.           Representations, Warranties and Confirmations. Debtor hereby represents and warrants to Lender that (a) this Amendment and any other Loan Documents to be delivered under this Amendment (if any) have been duly executed and delivered by Debtor, are valid and binding upon Debtor and are enforceable against Debtor in accordance with their terms, except as limited by any applicable bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles, (b) no action of, or filing with, any governmental authority is required to authorize, or is otherwise required in connection with, the execution, delivery and performance by Debtor of this Amendment or any other Loan Document to be delivered under this Amendment, and (c) the execution, delivery and performance by Debtor of this Amendment and any other Loan Documents to be delivered under this Amendment do not require the consent of any other person and do not and will not constitute a violation of any laws, agreements or understandings to which Debtor is a party or by which Debtor is bound.

 

14.           Release.  Debtor hereby acknowledges and agrees that there are no defenses, counterclaims, offsets, cross-complaints, claims or demands of any kind or nature whatsoever to or against Lender or the terms and provisions of or the obligations of Debtor under the Loan Documents and the other agreements, instruments and documents evidencing, securing, governing, guaranteeing or pertaining thereto, and that Debtor has no right to seek affirmative relief or damages of any kind or nature from Lender. To the extent any such defenses, counterclaims, offsets, cross-complaints, claims, demands or rights exist, Debtor hereby waives, and hereby knowingly and voluntarily releases and forever discharges Lender and its predecessors, officers, directors, agents, attorneys, employees, successors and assigns, from all possible claims, demands, actions, causes of action, defenses, counterclaims, offsets, cross-complaints, damages, costs, expenses and liabilities whatsoever, whether known or unknown, such waiver and release being with full knowledge and understanding of the circumstances and effects of such waiver and release and after having consulted legal counsel with respect thereto.

 

15.           Multiple Counterparts. This Amendment may be executed in a number of identical separate counterparts, each of which for all purposes is to be deemed an original, but all of which shall constitute, collectively, one agreement. Signature pages to this Amendment may be detached from multiple separate counterparts and attached to the same document and a telecopy or other facsimile of any such executed signature page shall be valid as an original.

 

16.           Reference to Loan Documents. Each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof containing a reference to any Loan Document shall mean and refer to such Loan Document as amended hereby.

 

17.           Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

18.           Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

NOTICE OF FINAL AGREEMENT

 

THE AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS THE SAME MAY BE AMENDED BY THIS AMENDMENT, REPRESENT THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN AND AMONG THE PARTIES.

 

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LENDER:
    	
 
    	
ADDRESS:
    
	
 
    	
 
    	
 
    
	
SOVEREIGN BANK
    	
 
    	
6060 Sherry Lane
    
	
 
    	
 
    	
Dallas, TX 75225
    
	
By:
    	
/s/ Stephanie Baird Velasquez
    	
 
    	
 
    
	
Name:
    	
Stephanie Baird Velasquez
    	
 
    	
 
    
	
Title:
    	
Area President
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
With copies of notices to:
    	
 
    	
GARDERE WYNNE SEWELL LLP 
    
	
 
    	
 
    	
1601 Elm Street, Suite 3000
    
	
 
    	
 
    	
Dallas, TX 75201-4761
    
	
 
    	
 
    	
Attention: Steven S. Camp
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DEBTOR:
    	
 
    	
ADDRESS:
    
	
 
    	
 
    	
 
    
	
TGC INDUSTRIES, INC.
    	
 
    	
101 E. Park Blvd.,   Suite 955 
    
	
 
    	
 
    	
Plano, TX 75074
    
	
By:
    	
/s/ Wayne Whitener
    	
 
    	
 
    
	
Name:
    	
Wayne Whitener 
    	
 
    	
 
    
	
Title:
    	
President & CEO
    	
 
    	
 
    

 

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EXHIBIT 1(d)

GEOSPACE EQUIPMENT

 

The items described in Section 1.1, Section 2.1 and Section 3.1 of Page 2 of the attached Quotation No. 0810-7795 Rev 1 from Geospace Technologies submitted to Wayne A. Whitener.

 

The items described in that certain Proforma Invoice No. 55609 dated as of December 13, 2010 from Geospace Technologies which are identified as follows:

 

	
Quantity
    	
 
    	
Description
    
	
3,000
    	
 
    	
450-00800-01 GSR Top Level Assy 1 Channel
    
	
3,300
    	
 
    	
454-04190-01 Batt, GSR, Single SR LiPo 14.4V xl0Ah
    

 

The items described in that certain Invoice No. 99-072511-01 dated as of July 25, 2011 from Geospace Technologies which are identified as follows:

 

	
Quantity
    	
 
    	
Description
    
	
5000
    	
 
    	
GSR-1 (450-00800-01-CAP)
    
	
6000
    	
 
    	
Battery Pack (BP-1) (454-04190-01-CAP)
    
	
40
    	
 
    	
Charger Cabinet (454-04210-03-CAP)
    
	
1
    	
 
    	
(FMC) w/ (GSI) (461-01480-01-CAP)
    
	
8
    	
 
    	
Source Recorder Decoder (461-01350-02-CAP)
    
	
10
    	
 
    	
GSR-LV (Line Viewer) (461-01110-02-CAP)
    
	
3
    	
 
    	
Data Transfer Module (450-00850-03-CAP)
    
	
1
    	
 
    	
GeoRes-XTC (450-00910-06-CAP)
    
	
5000
    	
 
    	
GS-One (GEO93041-01-CAP)
    
	
1
    	
 
    	
42’ GSR Field Trailer (450-01030-03-CAP)
    
	
1
    	
 
    	
GSR Generator Trailer (450-01040-04-CAP)
    
	
10
    	
 
    	
Western Digital 2TB MyBook (173-00078-CAP)
    

 

6Exhibit 10.1

 

SEVENTH AMENDMENT TO LEASE

 

THIS SEVENTH AMENDMENT TO LEASE (the “Seventh Amendment”) is made this 20th day of September, 2011 (the “Effective Date”), by and between RB KENDALL FEE, LLC (“Landlord”) and HELICOS BIOSCIENCES CORPORATION, having a mailing address at One Kendall Square, Building 200, Cambridge, Massachusetts 02139 (“Tenant”).

 

BACKGROUND:

 

A.            Reference is made to a certain Lease dated as of December 30, 2005 by and between Landlord’s predecessor in interest, One Kendall Square Associates, LLC, and Tenant as amended by (i) First Amendment dated March 23, 2006, (ii) Second Amendment To Lease (the “Second Amendment”) dated February 27, 2007; (iii) Third Amendment To Lease (the “Third Amendment”) dated December 10, 2007; (iv) Fourth Amendment To Lease (the “Fourth Amendment”) dated March 1, 2008; (v) Fifth Amendment To Lease (the “Fifth Amendment”) dated October 8, 2009 and (vi) Sixth Amendment to Lease dated June 9, 2010 (collectively, the “Lease”), demising approximately 27,298 rentable square feet of space (the “Building 600/650/700 Space”) located in Building 600/650/700; approximately 16,782 rentable square feet of space (the “Expansion Space”) located in Building 200; approximately 7,245 rentable square feet of space (the “Mezzanine Space”) located in the Building 700 Mezzanine and licensing the use of four (4) Storage Spaces (totaling approximately 2,237 rentable square feet) in the basement of Building 600/650/700 (the “Storage Space”) in One Kendall Square, Cambridge, Massachusetts (the “Complex”). Capitalized terms used but not defined herein shall have the same meaning as in the Lease.

 

B.            Landlord and Tenant are the current holders, respectively, of the lessor’s and lessee’s interests in the Lease.

 

C.            The term of the Lease expired and Tenant continued in possession as a tenant at will.

 

D.            Landlord and Tenant want to amend the Lease to fix the term, confirm that Tenant has surrendered certain portions of the Premises and will surrender additional portions of the Premises and otherwise amend as set forth in this Seventh Amendment.

 

D.            Landlord and Tenant now desire to amend the Lease as set forth herein.

 

AGREEMENTS:

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree and amend the Lease as follows:

 

1.             Surrendered Space . Tenant represents that it has surrendered the Building 600/650/700 Space (effective June 30, 2010) and the Mezzanine Space (effective December 31, 2010) (collectively, the “Surrendered Space”) in accordance with the terms of the Lease and Landlord hereby acknowledges and agrees that Tenant has so vacated, quit and delivered up the Surrendered Space in satisfactory condition and has satisfied all of its obligations pursuant to the surrender provisions the Lease with regard to the Surrendered Space. The Surrendered Space is no longer deemed to constitute a portion of the Premises demised pursuant to the Lease and Tenant has no leasehold or other right, title, or interest in or to the Surrendered Space.

 

2.                                       Phased Landlord Work. Tenant will be contracting its demised premises as set forth in

 

 

this Seventh Amendment and ultimately will be occupying only those portions of Expansion Space that are shown cross-hatched on the plan attached hereto as Exhibit A and identified as “Lab #1”, which premises total approximately 6,689 rentable square feet (such new space shall be referred to herein as the “New Premises”). Landlord agrees to complete, at Landlord’s sole cost and expense, certain work within the New Premises as shown on the space plans and described in the scope of work attached hereto as Exhibit B, in a good and workmanlike manner using, where applicable, Landlord’s building standard design and construction materials and finishes in full compliance with all applicable legal requirements (the “Landlord’s Work”). Landlord shall use reasonable speed and diligence in the construction of the Landlord’s Work. Except for Landlord’s Work, Tenant agrees that Landlord has no work to perform in or on the New Premises to prepare same for Tenant’s use and occupancy. Tenant acknowledges and agrees that some of Landlord’s Work will be completed while Tenant remains in occupancy of portions of the Expansion Premises and Tenant agrees to provide Landlord with ready access to the Expansion Space to complete Landlord’s Work. Landlord will coordinate with Tenant on dust mitigation and maintenance of HVAC/temperature control during Landlord’s Work to protect Tenant’s laboratory equipment and otherwise reasonably cooperate with Tenant in order to minimize any disruption to Tenant’s ongoing business activities (it being understood and agreed that such efforts shall not require Landlord to complete Landlord’s Work after business hours or on weekends). In addition, Tenant acknowledges and agrees that in order for Landlord to complete Landlord’s Work, Tenant will be required to temporarily surrender portions of the New Premises or work cooperatively with Landlord to facilitate Landlord’s Work in such portion of the premises while keeping the functions housed in the respective areas operational as set forth herein. Ongoing function operations will need to be maintained during the performance of Landlord’s Work in Phases 1 and 4 on Exhibit A-1. Accordingly, on or before the date that is fifteen (15) days after written notice from Landlord to Tenant, Tenant shall quit, vacate and yield-up those portions of the Expansion Space identified on Exhibit A as the “chemistry room”, “clean production” and “kit assembly” (and also identified in the area designated “Phase 2” on the plan attached as Exhibit A-1) in broom clean condition and free from all personal property, furniture, fixtures inventory and equipment and otherwise in accordance with the surrender provisions of the Lease, including, without limitation, that Tenant shall perform the decommissioning requirements for such areas set forth in Section 29.11(f) of the Lease and that the Landlord and Tenant shall cooperate in defining the specifics of such decommissioning requirements required under the Lease. Furthermore, Landlord shall thereafter provide Tenant with subsequent fifteen (15) day notices advising Tenant to quit, vacate and yield-up those portions of the Expansion Space identified as “Phase 3” (excluding the warm room and the room currently housing Alpha Optics systems) on Exhibit A-1 (in said fifteen (15) day period) in broom clean condition and free from all personal property, furniture, fixtures inventory and equipment and otherwise in accordance with the surrender provisions of the Lease, including, without limitation, that Tenant shall perform the decommissioning requirements set forth in Section 29.11(f) of the Lease for said space and that the Landlord and Tenant shall cooperate in defining the specifics of such decommissioning requirements required under the Lease. Landlord shall thereafter cooperate with Tenant to migrate Tenant’s data center identified as “Phase 4” on Exhibit A-1, at Landlord’s sole cost and expense (excluding the running of additional telecom data and wiring beyond that which is necessary to migrate the data center, which additional wiring and telecom data shall be Tenant’s responsibility) within the New Premises while allowing Tenant to keep the data center operational during the transition period (it being understood and agreed that there may be minimal disruption during the transition).

 

Landlord will reasonably cooperate with Tenant in the performance of the Landlord’s Work to provide Tenant access to the New Premises both prior to and during construction as necessary for Tenant to complete its work therein provided such access does not interfere with or delay the completion of Landlord’s Work .

 

Landlord shall carry and maintain, and shall cause its contractor to carry and maintain, at all times during

 

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the construction of the Landlord’s Work, commercially reasonable insurance with such limits and coverages as are consistent with the nature of the project as determined by Landlord in its sole but reasonable discretion.

 

3.             Additional Surrendered Space. Within fifteen (15) days after the completion of Landlord’s Work to the New Premises, Tenant shall quit, vacate and yield-up the remainder of the Expansion Space which is expected to be essentially Phase 5 on Exhibit A-1 (with the exception of the New Premises) in broom clean condition and free from all personal property, furniture, fixtures inventory and equipment and otherwise in accordance with the surrender provisions of the Lease, including, without limitation, the decommissioning requirements set forth in Section 29.11(f) thereto and that the Landlord and Tenant shall cooperate in defining the specifics of such decommissioning requirements required under the Lease.

 

4.             New Term and Yearly Rent. Effective as of the date of this Seventh Amendment, the term of the Lease is hereby extended for an additional term that commenced on August 1, 2011, and expires on December 31, 2012 (the “New Term”). Said New Term is upon the terms and conditions of the Lease except as set forth herein. Throughout the New Term, commencing August 1, 2011, Yearly Rent shall be due and payable on the New Premises rentable square footage only at a monthly gross rate of $16,722.50, payable in accordance with the terms of the Lease. During the New Term, Tenant shall no longer be obligated to pay Tenant’s Proportionate Common Area and Building Shares including its share of Taxes and other related items with respect to the New Premises nor shall Tenant be obligated to reimburse Landlord for its electricity consumption within the New Premises. For purposes of clarity, Landlord will be fully responsible for providing effective August 1, 2011 to the New Premises electricity, gas, water and shared neutralization tanks at Landlord’s cost – i.e., the cost for all such items are included in the monthly gross rate specified above.

 

5.             Payment of July Rent. Tenant acknowledges and agrees that Tenant’s Yearly Rent and additional rent for the month of July 2011, remains due and payable in the total amount of $54,757.82. Simultaneously with execution of this Seventh Amendment Tenant shall pay to Landlord one-half of rent owed in the amount of $27,378.91. The balance of the Yearly Rent and additional rent for the month of July, 2011, in the total amount of $27,378.91 shall be amortized over the balance of the New Term and shall be payable by Tenant beginning on the date of this Seventh Amendment, in monthly installments of $1,610.52, together with payments of Yearly Rent pursuant to the terms and conditions of the Lease. Contemporaneously with the execution and delivery of this Seventh Amendment, Tenant shall pay to Landlord (a) Yearly Rent for the month of August, 2011, in the amount of $16,722.50; (b) one-half of the rent owed for the month of July, 2011, in the amount of $27,378.91 and (c) the August 2011 installment of the balance of the July 2011 payment in the amount of $1,610.52.

 

6.             Storage Space. Tenant’s license to use the Storage Space shall continue throughout the New Term, however, such Storage Space shall be reduced to and area of approximately 1,577 rentable square feet as designated on the plan attached hereto as Exhibit C upon completion of the Landlord’s Work described in Section 2. Throughout the New Term, Tenant’s license to use the Storage Space shall be at no charge to Tenant and there shall be no license fee for the Storage Space.

 

7.             Termination Right. Provided Tenant has surrendered the area designated “Phase 2” on Exhibit A-1 as required in Paragraph 2 above, and provided Tenant is not otherwise in default under the terms of the Lease, then Tenant shall have the right to elect to terminate the Lease by giving written notice to Landlord at any time after the date that is four (4) months after August 1, 2011(“Tenant Termination Notice”). Tenant’s notice must be accompanied by the payment of the remaining amounts owing for July 2011 rent. If Tenant’s notice is given then this Lease shall terminate on the date that is

 

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sixty (60) days after the date of Tenant’s Termination Notice and Tenant shall surrender all of the demised premises as required under the provisions of the Lease.

 

8.             Parking. Tenant’s right to the monthly parking passes, as set forth in the Lease, shall be reduced to seven (7) passes in total number. In addition, Tenant’s use of such passes shall be at no cost to Tenant.

 

9.             Future Shared Services. Landlord anticipates building out the Expansion Space into an incubator area that will contain a common conference, common copier and common kitchen as identified on Exhibit A (the “Shared Services”) and as shown generally on Exhibit A. In the event such Shared Services are constructed, Tenant shall have the right, as appurtenant to the New Premises, to use in common with others entitled thereto, those Shared Services. Tenant’s use of the Shared Services shall be subject to the rules and regulations attached hereto as Exhibit D as same may be modified by Landlord from time to time and such other reasonable rules and regulations from time to time made by Landlord. There shall be no additional charge to Tenant for the use of the Shared Services. Nothing contained herein shall be construed to obligate Landlord to construct the Shared Services or build-out of the Expansion Premises (with the exception of Landlord’s Work).

 

10.           Security Deposit. Tenant acknowledges that Landlord is holding a cash security deposit in the amount of $16,906.67 under the terms of the Lease and Tenant agrees that such existing security deposit shall not be reduced and shall remain in place during the New Term pursuant to the terms of the Lease.

 

11.           Brokers. Landlord and Tenant each warrant and represent to the other that they have dealt with no brokers in connection with the negotiation or consummation of this Seventh Amendment other than Beal and Company, Inc. (the “Broker”) and in the event of any brokerage claim against either party by any person claiming to have dealt with either Landlord or Tenant in connection with this Seventh Amendment, other than the Broker, the party with whom such person claims to have dealt shall defend and indemnify the other party against such claim.

 

12.           Ratification. In all other respects the Lease shall remain unmodified and shall continue in full force and effect, as amended hereby. The parties hereby ratify, confirm, and reaffirm all of the terms and conditions of the Lease, as amended hereby.

 

4

 

IN WITNESS WHEREOF the parties hereto have executed this Seventh Amendment to Lease on the date first written above in multiple copies, each to be considered an original hereof, as a sealed instrument.

 

	
LANDLORD:
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
 
    
	
RB   KENDALL FEE, LLC
    	
HELICOS   BIOSCIENCES
    
	
 
    	
CORPORATION
    

 

 

	
By:
    	
/s/   Robert L. Beal
    	
 
    	
By:
    	
/s/   Jeffrey R. Moore
    
	
Robert   L. Beal, its authorized signatory
    	
Name:
    	
Jeffrey   R. Moore
    
	
 
    	
Title:
    	
SVP   & CFO
    

 

5

 

EXHIBIT A

PLAN OF NEW PREMISES

 

 

6

 

EXHIBIT A-1
 PHASING PLAN

 

 

7

 

EXHIBIT B
 LANDLORD’S WORK

 

 

8

 

EXHIBIT C
 STORAGE SPACE PLAN

 

 

9

 

EXHIBIT D

 

RULES AND REGULATIONS

 

KITCHENETTE AND CONFERENCE ROOM

RULES AND REGULATIONS

 

One Kendall Square

 

Building 200 Incubator Space - Kitchenette

 

Rules and Regulations

 

1.               Landlord shall supply the following:

 

a.               Refrigerator

b.              Sink

c.               Countertop

d.              Cabinets

e.               Coffee machine

f.                 Paper towels

 

2.               Tenant shall furnish all other supplies, including, but not limited to:

 

a.               Dishes

b.              Flatware and utensils

c.               Hot/Cold beverage cups

d.              Coffee, tea, cocoa and related items; sugar, creamer, etc.

e.               Napkins

 

3.               The refrigerator will be cleaned weekly by Landlord. All perishable items, with the exception of bottled /canned beverages and condiments will be discarded every Friday afternoon.

 

4.               Tenant is responsible to keep the Kitchenette and appliances clean. No food, used/dirty food containers, mugs, dishes, flatware, utensils, etc. may be left in the sink or on the countertop.

 

5.               Tenant is responsible to make sure all appliances (with exception of the refrigerator) are powered off after each use.

 

6.               Food, trash and recyclable items must be placed in the appropriate trash container/ recycle bin.

 

7.               Tenant is responsible to turn the lights off when exiting the Kitchenette.

 

8.               Landlord reserves the right to amend, revise or modify these Rules and Regulations from time-to-time.

 

10

 

One Kendall Square

 

Building 200 Incubator Space - Shared Conference Room

Rules and Regulations

 

9.               Reservations for the Conference Room must be scheduled at least two (2) hours in advance via the Angus Work Order System. Reservations will be scheduled on a first-come, first-served basis.

 

10.         Projector available upon request, subject to availability.

 

11.         The Conference Room must be left clean after each use. Trash and recyclable items must be placed in the appropriate trash container/ recycle bin.

 

12.         Tenant is responsible to push the chairs into the table after each use.

 

13.         Tenant is responsible to erase the white board after each use.

 

14.         Tenant is responsible to turn the lights off after each use.

 

15.         No items may be stored in the Conference Room.

 

16.         Landlord reserves the right to amend, revise or modify these Rules and Regulations from time-to-time.

 

11

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