Document:

Exhibit 10.14.2

 

THIRD AMENDMENT TO LEASE

 

THIS THIRD  AMENDMENT TO LEASE (this “Amendment”) is dated and effective as of  July 1, 2010 (the “Effective Date”), by and between BMR-ROGERS STREET LLC, a Delaware limited liability company (“Landlord,” as successor-in-interest to Rogers Street, LLC (“Original Landlord”)), and IRONWOOD PHARMACEUTICALS, INC., a Delaware corporation (formerly known as Microbia, Inc.) (“Tenant”).

 

RECITALS

 

A.            WHEREAS, Original Landlord and Tenant entered into that certain Lease dated as of January 12, 2007 (collectively with the First Amendment and the Second Amendment, the “Original Lease”), as amended by that certain First Amendment to Lease dated as of April 9, 2009 (the “First Amendment”) and that certain Second Amendment to Lease dated as of February 9, 2010 (the “Second Amendment”), whereby Tenant leases certain premises from Landlord at 301 Binney Street in Cambridge, Massachusetts;

 

B.            WHEREAS, Landlord and Tenant desire to enter into this Amendment to, among other things, memorialize the size of the Additional Premises Initial Phase, the Additional Premises Initial Phase Rent Commencement Date, an appropriate adjustment to Tenant’s Pro Rata Share and the Additional Premises Finish Work Allowance with respect to the Additional Premises Initial Phase, as required pursuant to Section 5 of the Second Amendment; and

 

C.            WHEREAS, Landlord and Tenant desire to modify and amend the Original Lease only in the respects and on the conditions hereinafter stated.

 

AGREEMENT

 

NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.             Definitions.  For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Original Lease unless otherwise defined herein.

 

2.             Additional Premises Initial Phase.  The Additional Premises Initial Phase consists of thirty-five thousand four hundred forty-four (35,444) rentable square feet on the third floor of the Building, as depicted on Exhibit A attached hereto, and includes shaft and/or mechanical space in the basement and on the first, second, third, fourth, fifth and penthouse levels of the Building.  The Additional Premises Initial Phase consists of thirty thousand seven hundred fifty-eight (30,758) useable square feet of space.  The Additional Premises Initial Phase Rent Commencement Date is July 1, 2010.

 

3.             Tenant’s Pro Rata Share.  Effective as of the Effective Date, Tenant’s Pro Rata Share shall be 37.61%.

 

 

4.             Additional Premises Finish Work Allowance.  The amount of the Additional Premises Finish Work Allowance allocated to the Additional Premises Initial Phase shall be One Million Nine Hundred Forty-Nine Thousand Four Hundred Twenty and 00/100 Dollars ($1,949,420).

 

5.             Completion of Landlord’s Work.  The work referenced on Exhibit B to the Second Amendment was completed by Landlord on or before March 1, 2010.  Tenant hereby acknowledges that it has approved and accepted such work and acknowledges that Landlord has satisfied its obligations set to complete all such work referenced in Section 10 of the Second Amendment, except for any latent defects not visually discoverable by Tenant upon a reasonably diligent inspection and which are identified in writing to Landlord on or before March 1, 2011.  Landlord shall repair all such latent defects upon receipt of written notice thereof.

 

6.             Measurement Standard.  Effective as of the Effective Date, pursuant to Section 2.01(e)(ii) of the Original Lease, the rentable area of the Premises has been remeasured in accordance with the Measurement Standard and the remeasured rentable square footage of the Premises is set forth on Exhibit B attached hereto.  Exhibit 2.01 (e) to the Original Lease is hereby deleted in its entirety and replaced with Exhibit B attached hereto.  Landlord and Tenant acknowledge and agree that the measurements reflected in this Amendment, including Exhibit B, are the final and conclusive measurements for the Building, Premises and each Phase (except for the Additional Premises Second Phase) under the Lease.  Notwithstanding anything herein to the contrary, to the extent that there is a conflict between the rentable area set forth in this Amendment and that set forth on Exhibit B hereto, the information set forth in this Amendment shall supersede.  For clarification purposes, effective as of the Effective Date but not prior to such Effective Date, the measurements reflected in Sections 7, 8 and 9 and Exhibit B of this Amendment, supersede the measurements set forth in the First Amendment, including Exhibit A attached thereto.

 

7.             Premises.  Effective as of the Effective Date, the rentable square footage of the Premises (except for the Additional Premises Second Phase) in its entirety is one hundred forty-nine thousand ninety (149,090) rentable square feet.  Effective as of the Effective Date, the Premises depiction attached as Exhibit C hereto supersedes that which was attached as Exhibit 1.07 to the Original Lease pursuant to Section 4 of the First Amendment.

 

8.             Phases.  The Office Space consists of nineteen thousand nine hundred twenty-three (19,923) rentable square feet on the second floor of the Building.  The First Floor Space consists of eighteen thousand (18,000) rentable square feet of space on the first floor of the Building and includes shaft and/or mechanical space in the basement and on the first, second, third, fourth, fifth and penthouse levels of the Building.  The First Lab Space consists of thirty-seven thousand  seventy-two (37,072) rentable square feet on the second floor of the Building and includes shaft and/or mechanical space in the basement and on the first, second, third, fourth, fifth and penthouse levels of the Building.  The Final Lab Space consists of thirty-eight thousand six hundred fifty-one (38,651) rentable square feet on the second floor of the Building and includes shaft and/or mechanical space on the second, third, fourth, fifth and penthouse levels of the Building.

 

 

9.             Base Rent and Pro Rata Share True-Up. Effective as of the Effective Date, Base Rent for the Office Space, the First Floor Space and the First Lab Space shall be calculated based on the Measurement Standard attached hereto as Exhibit B and a credit shall be given to Tenant for overpayments of Base Rent from and after the Effective Date through the date of the October rent statement.  Tenant shall receive such credit on the October rent statement.  Effective as of the Effective Date, Base Rent for the Additional Premises Initial Phase shall be calculated based on the Measurement Standard attached hereto as Exhibit B and the amount of such Base Rent from and after the Effective Date through the date of the October rent statement shall also be reflected in the October rent statement.   All amounts owed from and after the Effective Date through the date of the October rent statement for Tenant’s Pro Rata Share of estimated (i) Operating Expenses, (ii) Taxes, and (iii) Landlord’s utilities and insurance expenses that result from the increase in the Tenant’s Pro Rata Share between the First Amendment and this Amendment shall also be reflected on the October rent statement.

 

10.           Building.  The rentable square footage of the Building is four hundred seventeen thousand two hundred ninety (417,290) rentable square feet.

 

11.           Finish Work Allowance.  The parties hereby agree that the Finish Work Allowance allocable to the Premises (other than the Additional Premises Initial Phase and the Additional Premises Second Phase) shall not change as a result of the revised measurements set forth in this Amendment and shall remain as set forth in Section 10 of the First Amendment.

 

12.           Letter of Credit.  The parties hereby agree that the amount of the Letter of Credit currently due shall not change as a result of the revised measurements set forth in this Amendment and shall remain as set forth in Section 11 of the First Amendment.  Landlord hereby confirms that, pursuant to Section 11 of the First Amendment, Tenant has delivered to Landlord, and Landlord currently holds, a Letter of Credit in the amount of Seven Million Six Hundred Sixteen Thousand Eight Hundred Thirty-Three Dollars ($7,616,833.00).

 

13.           Broker.  Tenant and Landlord each represents and warrants to the other that it has not dealt with any broker or agent in the negotiation for or the obtaining of this Amendment and agrees to indemnify, defend and hold the other harmless from any and all cost or liability for compensation claimed by any such broker or agent employed or engaged by it or claiming to have been employed or engaged by it for such purposes.

 

14.           Effect of Amendment.  Except as modified by this Amendment, the Original Lease and all the covenants, agreements, terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed.  The covenants, agreements, terms, provisions and conditions contained in this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and, except as otherwise provided in the Original Lease, as amended hereby, their respective assigns.  In the event of any conflict between the terms contained in this Amendment and the Original Lease, the terms herein contained shall supersede and control the obligations and liabilities of the parties.  From and after the date hereof, the term “Lease” as used in 

 

 

the Original Lease and this Amendment shall mean the Original Lease, as modified by this Amendment.

 

15.           Miscellaneous.  This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The captions of the paragraphs and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be considered or given any effect in construing the provisions hereof.  All exhibits hereto are incorporated herein by reference.

 

16.           Counterparts.  This Amendment may be executed in one or more counterparts that, when taken together, shall constitute one original.

 

17.           Authority.  Landlord and Tenant have all necessary and proper authority, without the need for the consent of any other person or entity, other than any consents that have been obtained, to enter into and perform under this Amendment.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands as of the date and year first above written, and acknowledge that they possess the requisite authority to enter into this transaction and to execute this Amendment.

 

LANDLORD:

 

	
BMR-ROGERS STREET LLC,
    	
 
    
	
a Delaware   limited liability company
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Kevin Simonsen
    	
 
    
	
Name: 
    	
Kevin Simonsen
    	
 
    
	
Title: 
    	
Vice President, Real Estate Counsel
    	
 
    

 

 

TENANT:

 

	
IRONWOOD   PHARMACEUTICALS, INC.,
    	
 
    
	
a Delaware   corporation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ J DeTore
    	
 
    
	
Name: 
    	
J DeTore
    	
 
    
	
Title: 
    	
VP, FinanceExhibit 10.14.3

 

FOURTH AMENDMENT TO LEASE

 

THIS FOURTH  AMENDMENT TO LEASE (this “Amendment”) is entered into as of this 3rd day of February, 2011 (the “Execution Date”), by and between BMR-ROGERS STREET LLC, a Delaware limited liability company (“Landlord,” as successor-in-interest to Rogers Street, LLC (“Original Landlord”)), and IRONWOOD PHARMACEUTICALS, INC., a Delaware corporation (formerly known as Microbia, Inc.) (“Tenant”).

 

RECITALS

 

A.                                   WHEREAS, Original Landlord and Tenant entered into that certain Lease dated as of January 12, 2007, as amended by that certain First Amendment to Lease dated as of April 9, 2009, that certain Second Amendment to Lease dated as of February 9, 2010 (the “Second Amendment”), and that certain Third Amendment to Lease dated as of July 1, 2010 (collectively, as the same may have been otherwise amended, supplemented or modified from time to time,  the “Lease”), whereby Tenant leases certain premises (the “Original Premises”) from Landlord at 301 Binney Street in Cambridge, Massachusetts (the “Building”);

 

B.                                     WHEREAS, Landlord and Tenant desire to memorialize the size of the Additional Premises Second Phase, an appropriate adjustment to Tenant’s Pro Rata Share and the Additional Premises Finish Work Allowance with respect to the Additional Premises Second Phase, as required pursuant to Section 6 of the Second Amendment;

 

C.                                     WHEREAS, Tenant desires to lease additional premises from Landlord; and

 

D.                                    WHEREAS, Landlord and Tenant desire to modify and amend the Lease only in the respects and on the conditions hereinafter stated.

 

AGREEMENT

 

NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.                                       Definitions.  For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Lease unless otherwise defined herein.

 

2.                                       Additional Premises Second Phase.  The Additional Premises Second Phase consists of Twenty-One Thousand Five Hundred Eighty-Nine (21,589) rentable square feet on the third floor of the Building, as depicted on Exhibit A attached hereto, and includes shaft and/or mechanical space on the first, third, fourth, fifth and penthouse levels of the Building.  The Additional Premises Second Phase consists of Eighteen Thousand Six Hundred Sixty-Seven (18,667) useable square feet of space.  The Additional Premises Second Phase Rent Commencement Date shall be determined in accordance with the Second Amendment.  Once the Additional Premises Second Phase Rent Commencement Date is determined, Landlord and Tenant shall execute a notice, as a confirmation only, setting forth the Additional Premises Second Phase Rent Commencement Date.

 

 

3.                                       Tenant’s Pro Rata Share.  Effective as of the Additional Premises Second Phase Rent Commencement Date, Tenant’s Pro Rata Share shall be 43.05%.

 

4.                                       Additional Premises Finish Work Allowance.  The amount of the Additional Premises Finish Work Allowance allocated to the Additional Premises Second Phase shall be One Million One Hundred Eighty-Seven Thousand Three Hundred Ninety-Five and 00/100 Dollars ($1,187,395).

 

5.                                       Rights of Building Tenants in Additional Premises Third Phase.  As of the Execution Date, Landlord represents and warrants that no other person or entity has any enforceable rights with respect to the leasing or occupancy of the Additional Premises Third Phase (as defined below) as a tenant.

 

6.                                       Additional Premises Third Phase.  As of the Execution Date, Landlord hereby leases to Tenant approximately 23,307 contiguous rentable square feet of additional premises located on the third floor of the Building, as depicted on Exhibit B attached hereto (the “Additional Premises Third Phase”).  The actual rentable square footage and actual useable square footage of the Additional Premises Third Phase will be adjusted and mutually agreed to between Landlord and Tenant based upon the actual constructed rentable square footage and actual constructed usable square footage determined in accordance with the Measurement Standard.

 

7.                                       Term Commencement Date.  The term with respect to the Additional Premises Third Phase shall commence upon the Execution Date and shall terminate, subject to any extension options granted pursuant to the Lease, simultaneous with the expiration of the Term.  From and after the Execution Date, the term “Premises,” as used in the Lease, shall mean the Original Premises plus the Additional Premises Third Phase and, except as otherwise provided herein, all provisions of the Lease, including (without limitation) the option to extend the Term as set forth in Section 3.03 of the Lease, shall apply to such Premises.

 

8.                                       Additional Premises Third Phase Rent Commencement Date.  Rent with respect to the Additional Premises Third Phase shall commence upon the earlier of (a) February 15, 2012 and (b) substantial completion of the Finish Work with respect to the Additional Premises Third Phase and Tenant’s occupancy thereof for the conduct of its business (the “Additional Premises Third Phase Rent Commencement Date”).  Following the Additional Premises Third Phase Rent Commencement Date, Landlord and Tenant shall enter into an amendment to the Lease, as amended hereby, memorializing the actual useable square footage and the actual rentable square footage of the Additional Premises Third Phase, the Additional Premises Third Phase Rent Commencement Date, an appropriate adjustment to Tenant’s Pro Rata Share and the Additional Premises Third Phase Finish Work Allowance (as defined below) with respect thereto.

 

9.                                       Tenant’s Pro Rata Share.  Tenant’s Pro Rata Share shall be increased on the Additional Premises Third Phase Rent Commencement Date to include the actual rentable square footage of the Additional Premises Third Phase in the calculation of Tenant’s Pro Rata Share.

 

10.                                 Base Rent/Annual Adjustments:  The initial Base Rent for the Additional Premises Third Phase shall be $42.50 per rentable square foot per year commencing on the Additional Premises Third Phase Rent Commencement Date.  Base Rent for the Additional Premises Third 

 

 

Phase shall be increased during the initial Term on each annual anniversary of the Additional Premises Initial Phase Rent Commencement Date beginning with the first such annual anniversary after the Additional Premises Third Phase Rent Commencement Date by fifty cents ($0.50) per rentable square foot per year.  Base Rent for the Additional Premises Third Phase shall not be increased on the Interim Date as provided in Section 1.16 of the Lease.  Base Rent for the Additional Premises Third Phase for any Extension Term or Terms shall be determined in accordance with Section 1.16 of the Lease.  Commencing on the Additional Premises Third Phase Rent Commencement Date, the Base Rent for the Additional Premises Third Phase shall be paid in equal monthly installments in advance on the first day of each and every calendar month during the Term as set forth in Section 4.01 of the Lease.  To the extent the Additional Premises Third Phase Rent Commencement Date occurs before the actual rentable square footage of such phase is determined in accordance with Section 6 of this Amendment, the parties hereto agree to true up all payments of Rent for such phase made prior to the date such actual square footage is determined within thirty (30) days of the date such actual rentable square footage is determined.  The parties will also make any appropriate adjustments and true ups for payments of the Additional Premises Third Phase Finish Work Allowance for such phase within thirty (30) days of the date such actual rentable square footage is determined.

 

11.                                 Finish Work Allowance.  Landlord shall provide to Tenant an additional Finish Work Allowance of Forty Dollars ($40.00) per rentable square foot of Additional Premises Third Phase (the “Additional Premises Third Phase Finish Work Allowance”) in order to fund, pursuant to the terms and procedures set forth in Sections 10.04(c) and 10.05 of the Lease (including, without limitation, Tenant’s rights under the last paragraph of Section 10.04(c)-2 of Exhibit 10.04(c)), the design and construction by Tenant of the Finish Work with respect to the Additional Premises Third Phase; provided that, notwithstanding anything in Sections 10.04(c) or 10.05 of the Lease to the contrary, (i) Tenant shall have no obligation to pay or reimburse Landlord for any costs or expenses to review or supervise the construction of the Finish Work with respect to the Additional Premises Third Phase, to review the Construction Documents related thereto or to assist with government filings and (ii) Landlord’s approval of the Construction Documents related to the Finish Work with respect to the Additional Premises Third Phase shall not be unreasonably withheld, conditioned or delayed.  The Additional Premises Third Phase Finish Work Allowance shall be determined based on the actual constructed rentable square footage of the Additional Premises Third Phase.  The Additional Premises Third Phase Finish Work Allowance must be utilized for Finish Work constructed within the Additional Premises Third Phase.  Tenant will not be required to remove the Finish Work constructed within the Additional Premises Third Phase at the end of the Term.

 

12.                                 Condition of Premises.   Tenant acknowledges that, other than as set forth below or in the Lease, neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of the Additional Premises Third Phase, the Building or the Property, or with respect to the suitability of the Additional Premises Third Phase, the Building or the Property for the conduct of Tenant’s business.  Tenant acknowledges that (a) it is fully familiar with the condition of the Additional Premises Third Phase and agrees to take the same in its condition “as is” as of the Execution Date  and (b) Landlord shall have no obligation to alter, repair or otherwise prepare the Additional Premises Third Phase for Tenant’s occupancy or to pay for or construct any improvements to the Additional Premises Third Phase, except that Landlord shall provide the Additional Premises Third Phase Finish Work Allowance as described in Section 11 above.   

 

 

Landlord hereby represents and warrants that, as of the Execution Date, the common area of the Building and the Additional Premises Third Phase are in compliance with all Legal Requirements.

 

13.                                 Parking.  In addition to any existing Tenant rights to parking spaces under the Lease, commencing on the date requested by Tenant, but in any event, no later than the Additional Premises Third Phase Rent Commencement Date, Landlord shall provide Tenant with 1.0 parking spaces per 1,000 useable square feet (exclusive of any mechanical space) of Additional Premises Third Phase at Landlord’s then-current prevailing monthly rate for parking spaces.  Tenant’s use of the parking spaces provided hereunder and Tenant’s rights with respect thereto (including (without limitation) limitations on increases in the prevailing monthly rate for parking spaces) shall otherwise be in accordance with the terms of Section 2.01(d) of the Lease.

 

14.                                 Broker. Tenant represents and warrants that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Amendment other than CB Richard Ellis, Inc. (“Broker”), and that it knows of no other real estate broker or agent that is or might be entitled to a commission in connection with the representation of Tenant in connection with this Amendment.  Landlord shall compensate Broker in relation to this Amendment pursuant to a separate agreement between Landlord and Broker.

 

14.1                           Tenant represents and warrants that no broker or agent has made any representation or warranty relied upon by Tenant in Tenant’s decision to enter into this Amendment, other than as contained in this Amendment.

 

14.2                           Tenant acknowledges and agrees that the employment of brokers by Landlord is for the purpose of solicitation of offers of leases from prospective tenants and that no authority is granted to any broker to furnish any representation (written or oral) or warranty from Landlord unless expressly contained within this Amendment.  Landlord is executing this Amendment in reliance upon Tenant’s representations, warranties and agreements contained within Section 14, Section 14.1 and this Section 14.2.

 

14.3                           Tenant agrees to indemnify, save, defend and hold Landlord harmless from any and all cost or liability for compensation claimed by any other broker or agent, other than Broker, employed or engaged by Tenant or claiming to have been employed or engaged by Tenant.

 

14.4                           Landlord shall pay any commission, fee or other compensation due to any Landlord broker(s) in connection with this Amendment.  Landlord agrees to indemnify, save, defend and hold Tenant harmless from any and all cost or liability for compensation claimed by any broker or agent employed or engaged by Landlord or claiming to have been employed or engaged by Landlord.

 

15.                                 Effect of Amendment.  Except as modified by this Amendment, the Lease and all the covenants, agreements, terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed.  The covenants, agreements, terms, provisions and conditions contained in this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and, except as otherwise provided in the Lease, as amended hereby, their respective assigns.  In the event of any conflict between the terms contained in this Amendment and 

 

 

the Lease, the terms herein contained shall supersede and control the obligations and liabilities of the parties.  From and after the Execution Date, the term “Lease” as used in the Lease shall mean the Lease, as modified by this Amendment.

 

16.                                 Miscellaneous.  This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The captions of the paragraphs and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be considered or given any effect in construing the provisions hereof.  All exhibits hereto are incorporated herein by reference.

 

17.                                 Counterparts.  This Amendment may be executed in one or more counterparts that, when taken together, shall constitute one original.

 

18.                                 Authority.  Landlord and Tenant have all necessary and proper authority, without the need for the consent of any other person or entity, other than any consents that have been obtained, to enter into and perform under this Amendment.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands as of the date and year first above written, and acknowledge that they possess the requisite authority to enter into this transaction and to execute this Amendment.

 

LANDLORD:

 

	
BMR-ROGERS STREET LLC,
    	
 
    
	
a Delaware   limited liability company
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:  
    	
/s/ John Bonanno
    	
 
    
	
Name:  
    	
John Bonanno
    	
 
    
	
Title:
    	
 Senior Vice   President, Leasing & Development
    	
 
    

 

 

TENANT:

 

	
IRONWOOD   PHARMACEUTICALS, INC.,
    	
 
    
	
a Delaware   corporation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:  
    	
/s/ J DeTore
    	
 
    
	
Name:
    	
 J DeTore
    	
 
    
	
Title:  
    	
VP, Finance

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