Document:

Exhibit 10.3

 

AGREEMENT FOR CONSULTING SERVICES

 

This Consulting Services Agreement (“Agreement”) is made and entered into by and between Derek A. Bertocci (“CONSULTANT”) and Accuray Incorporated (“ACCURAY”).  This Agreement shall be effective as of September 3, 2013 (“Effective Date”).

 

W I T N E S S E T H

 

WHEREAS, CONSULTANT has training, expertise and prior experience in the development, manufacture and sale of radiation oncology, including radiosurgery and radiation therapy technologies and devices, and in the executive management of ACCURAY; and

 

WHEREAS, ACCURAY desires to retain the services of CONSULTANT to provide the consulting services specified in this Agreement; and

 

WHEREAS, CONSULTANT desires to provide consulting services for the benefit of ACCURAY and its related entities using his knowledge, skills, experience and abilities;

 

NOW THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the parties hereto agree as follows:

 

ARTICLE I - SERVICES TO BE PROVIDED

 

A.  Nature of Services.  CONSULTANT shall be available to provide advice and assistance to ACCURAY and its related entities, and specifically the President and Chief Executive Officer and to the Executive Vice President and Chief Financial Officer of ACCURAY, with respect to various questions, initiatives and projects in the areas of radiosurgery and radiation therapy, and personnel, customers, prospective customers and vendors of ACCURAY (collectively, “Services”) on an as needed basis, up to a maximum of 80 hours of Services each month during the Term of this Agreement.

 

B.  Right of Control.  CONSULTANT shall have exclusive control over the means, manner, methods and processes by which the Services are performed.

 

C.  Exclusive Services.  In order to ensure that CONSULTANT is available to provide, and to devote his undivided attention and effort in providing, the Services as required by ACCURAY, and to insure compliance with the obligations in Article IV of this Agreement, CONSULTANT agrees that he will not accept any employment or engage in any other consulting, business and/or commercial activities with the following entities: Varian Medical Systems, Elekta AB, Siemens AG, Mitsubishi Heavy Industries, Brainlab AG, ViewRay Inc, Best Medical, Rotary Systems, Radiation Stabilization Solutions, Alliance Oncology, MedyTec, Oncology Systems Limited, or any of their affiliates (the “Prohibited Entities”).  In addition, in the event CONSULTANT intends to provide services related in any way to radiation oncology, including radiosurgery or radiation therapy, during the Term of this Agreement to any entity other than a Prohibited Entity, CONSULTANT shall notify ACCURAY’s General Counsel to get approval by ACCURAY and such approval shall not be unreasonably withheld.  In the event CONSULTANT desires to provide work to any of the above, then both parties could mutually agree to terminate this agreement in writing, such agreement not to be unreasonably withheld.

 

1

 

ARTICLE II - COMPENSATION FOR SERVICES

 

A.  Consulting Fees.  As payment and consideration for the Services to be provided and promises made herein by CONSULTANT, ACCURAY agrees to pay CONSULTANT a “Consulting Fee” of $27,716.67 per month for the Services.  The Consulting Fee will be paid in two equal installments each month and mailed to CONSULTANT before the 15th and last day of each month in which the Services are provided.

 

B.  Reimbursement of Authorized Expenses.  ACCURAY agrees to reimburse CONSULTANT for all actual out-of-pocket expenses that are necessary for the performance of CONSULTANT’s Services under this Agreement, provided, however, that any expenses must be approved in advance in writing by ACCURAY’s Chief Financial Officer.

 

C.  Tax Obligations.  CONSULTANT understands and agrees that all compensation to which he is entitled under the Agreement shall be reported on an IRS Form 1099, and that he is solely responsible for all income and/or other tax obligations, if any, including but not limited to all reporting and payment obligations, if any, which may arise as a consequence of any payment under this Agreement.

 

D.  No Benefits.  CONSULTANT understands and agrees that since he is no longer an employee of ACCURAY, he shall not be entitled to participate in ACCURAY employee benefits plans or receive any benefits provided to employees of ACCURAY, including, but not limited to participation in retirement savings or benefit plans, bonus plans and/or stock option plans beyond his participation during his employment by ACCURAY; holidays off with pay; vacation time off with pay; paid leaves of absence of any kind; and insurance coverage of any kind, specifically including, but not limited to, medical and dental insurance, workers’ compensation insurance and state disability insurance.

 

ARTICLE III - TERM AND TERMINATION

 

A.  Term of Agreement.  This Agreement shall continue in full force and effect from the Effective Date through December 3, 2013 (the “Term”).

 

B.  Termination Prior to Expiration of Term.  Either party hereto may terminate this Agreement at any time without cause on ten (10) business days’ advance written notice to the other.  If ACCURAY terminates the Agreement without Cause, it shall pay CONSULTANT the monthly Consulting Fee that otherwise would have been paid through the end of the Term. If CONSULTANT terminates the Agreement, ACCURAY shall have no obligation to pay any portion of the Consulting Fee after the termination is effective.  The Consulting Fee for the month in which the termination notice is effective shall be calculated by dividing the monthly Consulting Fee by the number of days in the month in which the termination is effective and multiplying that result by the number of days in the month until the termination is effective minus any portion of the Consulting Fee already paid that month.

 

ACCURAY may terminate this Agreement for Cause before the expiration of the Term hereof without any prior notice.  “Cause” shall mean (i) CONSULTANT’S commission of a felony, (ii) CONSULTANT’S commission of a crime involving moral turpitude or CONSULTANT’S commission of any other material act or material omission involving dishonesty,

 

2

 

disloyalty, breach of fiduciary duty or fraud with respect to ACCURAY or any of its subsidiaries or any of their customers or suppliers, (iii) the material violation of ACCURAY’S written Code of Conduct and Ethics that was provided to CONSULTANT, as determined in ACCURAY’S reasonable sole discretion, (iv) the violation of the Foreign Corrupt Practices Act (“FCPA”), (v) CONSULTANT’S material failure to perform the normal and customary duties under the Agreement as reasonably directed by ACCURAY, provided, that any of the acts or omissions described in the foregoing clauses are not cured to ACCURAY’s reasonable satisfaction within thirty (30) days after written notice is given to CONSULTANT.  If CONSULTANT is terminated for Cause, ACCURAY shall have no obligation to pay any portion of the Consulting Fee after the termination is effective.  The Consulting Fee for the month in which the termination is effective shall be calculated by dividing the monthly Consulting Fee by the number of days in the month in which the termination is effective and multiplying that result by the number of days in the month until the termination is effective minus any portion of the Consulting Fee already paid that month.

 

ARTICLE IV — PROPRIETARY RIGHTS

 

A.  No Impediments to Providing Consulting Services.  CONSULTANT represents that he is not party to any agreement with any individual or business entity, including any relating to protection of alleged trade secrets or confidential business information that would prevent him from providing the Services or that would be violated by the providing of the Services.

 

B.  Confidential and Proprietary Information.  CONSULTANT acknowledges that the post-employment terms of the ACCURAY Employee Invention Assignment and Confidentiality Agreement, the Employment Agreement that existed before this Agreement and the General Release and Separation Agreement which may be entered into between ACCURAY and CONSULTANT, remain in full force and effect, specifically including the prohibitions against using or disclosing any of ACCURAY’s trade secrets or proprietary and/or confidential information learned while employed by ACCURAY during any subsequent employment.  CONSULTANT also acknowledges that during the term of this Agreement he will have access to and learn additional confidential information and/or trade secrets regarding the business of ACCURAY and its related entities, including, but not limited to, radio surgery and radiation therapy devices, and various other business, financial, technical and employee information (collectively, “Confidential and Proprietary Information”).

 

C.  Restrictions on Use and Disclosure of Confidential and Proprietary Information.  In addition to the confidential information obligations that continue from the period of CONSULTANT’s employment with ACCURAY, CONSULTANT agrees to hold all Confidential and Proprietary Information in trust and in the strictest of confidence, and to protect the Confidential and Proprietary Information from disclosure, and to only use such Confidential and Proprietary Information as required to perform the Services hereunder.  CONSULTANT further agrees that he will not, directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential and Proprietary Information to any third party without the prior written consent of ACCURAY, which may be withheld in its absolute discretion.

 

D.  Return of Property.  CONSULTANT agrees not to remove any property of ACCURAY or its related entities from their premises without express permission, and to return all such property, including computer data, written materials provided to or obtained during the term of

 

3

 

this Agreement, customer and supplier address lists, and any other items of value at the time this Agreement is terminated.

 

E.  No Solicitation of Customers and Vendors.   CONSULTANT further agrees that, during the term of this Agreement and for a period of one year after the termination of it, he will not directly or indirectly, either on his own behalf or on behalf of any other person or entity, use any Confidential and Proprietary Information to attempt to persuade or solicit any customer or vendor of ACCURAY to cease to do business or to reduce the amount of business which any customer or vendor has customarily done or contemplates doing with them, or to expand the customer’s or vendor’s business with a competitor of ACCURAY or its related entities.

 

F.  No Solicitation of Employees and Other Consultants.  CONSULTANT further agrees, that during the term of this Agreement and for a period of one year after its termination, he will not directly or indirectly, either on his own behalf or on behalf of any other person or entity, attempt to persuade or solicit any person who is an employee or consultant of ACCURAY or its related entities to terminate such employment or consulting relationship.  In addition, CONSULTANT agrees that after the termination of this Agreement he will not seek to obtain or misappropriate any of the Confidential and Proprietary Information of ACCURAY or its related entities from any of their current or former employees and consultants.

 

G.  Violations.  CONSULTANT agrees that ACCURAY and its related entities would be irreparably harmed by any actual or threatened violation of the promises in this Article IV, and therefore, that, in addition to other remedies, ACCURAY and its related entities will be entitled to an injunction prohibiting CONSULTANT from committing any such violations.

 

ARTICLE V — MISCELLANEOUS PROVISIONS

 

A.  Independent Contractor Status.  CONSULTANT understands and agrees that he is an independent contractor and not an employee of ACCURAY and that he shall not become an employee of ACCURAY by virtue of the performance of the services called for under this Agreement.

 

B.  No Office Space.  CONSULTANT understands and agrees that he will not be provided with a regular office and access to telephone, clerical support and facsimile and internet services at ACCURAY.  CONSULTANT shall at his own expense acquire, operate, maintain and repair or replace any office and equipment and supplies as maybe required for his performance of consulting services under this Agreement.

 

C.  Subconsultants and Other Contractors.  CONSULTANT is not authorized to engage the services of subconsultants, vendors or other contractors on behalf of ACCURAY or its related entities, unless she has obtained written authorization from ACCURAY to do so in advance.  To the extent such advance authorization has been obtained, ACCURAY will pay for the services provided by such subconsultants, vendors and/or other contractors.

 

D.  Consultant’s Employees.  To the extent CONSULTANT has any employees as of the date he signs this Agreement or hires any employees during the Term of this Agreement, CONSULTANT understands and agrees that all such employees shall be his employees only, and that ACCURAY shall not be an employer of the employees.  ACCURAY shall have no

 

4

 

responsibility for providing and shall not provide directions, instructions or supervision to any of CONSULTANT’s employees.  Only CONSULTANT shall provide such directions, instructions and supervision.  In addition, all decisions with respect to the employment of CONSULTANT’s employees, if any, shall be made solely and exclusively by CONSULTANT.  ACCURAY shall have no responsibility for or input into such decisions.  CONSULTANT hereby agrees to indemnify, defend and hold ACCURAY harmless from and against any costs, losses, damages, obligations, liabilities and expenses, including attorneys’ fees, arising from or in connection with any claim asserted by any of CONSULTANT’s employees against ACCURAY based on the employees’ employment with CONSULTANT, such as claims for discrimination in employment, harassment, retaliation, violation of statutory law, and wrongful termination.

 

E.  No Purchases.  CONSULTANT shall not purchase materials or supplies for the accounts of ACCURAY or its related entities, or otherwise hold himself out as being authorized to make purchases for which ACCURAY or its related entities would be billed directly by the seller of the materials or supplies, unless such purchase is authorized in writing by ACCURAY in advance.

 

F.  Compliance with Governmental Requirements.  CONSULTANT will maintain in force and/or secure all required licenses, permits, certificates and exemptions necessary for the performance of his services under this Agreement, and at all times shall comply with all applicable federal, state and local laws, regulations and orders.

 

G.  Indemnification.  CONSULTANT shall indemnify and hold ACCURAY and its related entities, and the directors, officers, agents, representatives and employees of all such entities, harmless from and against any and all liabilities, losses, damages, costs, expenses, causes of action, claims, suits, legal proceedings and similar matters, including without limitation reasonable attorneys’ fees, resulting from or arising out of the failure of CONSULTANT or any of his employees to comply with and perform fully the obligations hereunder, or resulting from any act or omission on the part of CONSULTANT, provided however that the indemnification shall not apply to any good faith action on the part of the CONSULTANT that is within the scope of this Agreement.  If any cause of action, claim, suit or other legal proceeding is brought against CONSULTANT in connection with any services rendered under this Agreement, CONSULTANT shall promptly notify ACCURAY upon learning of any such proceeding.

 

ACCURAY shall indemnify and hold CONSULTANT and his agents, employees, representatives and heirs, harmless from and against any and all liabilities, losses, damages, costs, expenses, causes of action, claims, suits, legal proceedings and similar matters, including without limitation reasonable attorneys’ fees, resulting from or arising out of the performance of any act specifically requested or authorized by ACCURAY in connection with this Agreement.  This promise does not apply to any actions arising out of or in connection with CONSULTANT’s operation of any motor vehicle.  If any cause of action, claim, suit or other legal proceeding is brought against ACCURAY in connection with any services provided by CONSULTANT under this Agreement, ACCURAY shall promptly notify CONSULTANT upon learning of any such proceeding.

 

H.  Notices.  Any and all notices and other communications hereunder shall have been deemed to have been duly given when delivered personally or by e-mail during normal business hours, or 24 hours after being emailed outside of normal business hours or mailed, certified

 

5

 

or registered mail, return receipt requested, postage prepaid, in the English language, to the addresses set forth below the signatures of the parties hereto or to such other address as either of the parties hereto may from time-to-time designate to the other party in writing.

 

I.  Waiver.  No purported waiver by either party hereto of any provision of this Agreement or of any breach thereof shall be deemed a waiver of such provision or breach unless such waiver is in writing signed by the party making such waiver.  No such waiver shall be deemed to be a subsequent waiver of such provision or waiver of any subsequent breach of the same or any other provision hereof.

 

J.  Severability.  The provisions of this Agreement are severable, and if any part of it is found to be unenforceable, the other paragraphs shall remain fully valid and enforceable.

 

K.  Arbitration.  This Agreement shall in all respects be interpreted and governed by and under the laws of the State of California.  Any dispute between the parties hereto, including any dispute regarding any aspect of this Agreement or any act which allegedly has or would violate any provision of this Agreement or any law (hereinafter “Arbitrable Dispute”), will be submitted to arbitration through Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San Jose, California, unless the parties agree to another location, using the JAMS Commercial Arbitration Rules (“JAMS Rules”). The arbitrator shall be an experienced arbitrator licensed to practice law in California and selected in accordance with the JAMS Rules, unless the parties agree to another arbitrator.  Arbitration shall be the exclusive remedy for any such Arbitrable Dispute.  The decision of the arbitrator shall be final, conclusive and binding upon the parties.  Should any party to this Agreement pursue any Arbitrable Dispute by any method other than said arbitration, the responding party shall be entitled to recover from the initiating party all damages, costs, expenses and attorneys’ fees incurred as a result of such action.  This section shall not restrict the right of ACCURAY to go to court seeking injunctive relief for a violation of Article IV of this Agreement, pending the outcome of an arbitration proceeding.

 

L.  Sole and Entire Agreement.  This Agreement sets forth the entire agreement between the parties hereto pertaining to the subject matter hereof, and fully supersedes any and all prior agreements or understandings between the parties hereto, whether written or oral, pertaining to the subject matter hereof.  No change in, modification of, or addition, amendment or supplement to this Agreement shall be valid unless set forth in writing and signed and dated by each of the parties hereto subsequent to the execution of this Agreement.

 

[REMAINDER OF PAGE INTENIONALLY LEFT BLANK]

 

6

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective Date set forth above.

 

 

	
/s/   Derek A. Bertocci
    	
 
    	
ACCURAY   INCORPORATED
    
	
Derek   A. Bertocci
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:   
    	
September 25,   2013
    	
 
    	
By:   
    	
/s/   Darren J. Milliken
    
	
 
    	
 
    	
 
    	
Name:
    	
Darren   J. Milliken
    
	
Address:
    	
 
    	
Title:
    	
Senior   Vice President, General Counsel
    
	
Most recent on file with the Company
    	
 
    	
Date:
    	
September 25,   2013
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address:   
    	
1310   Chesapeake Terrace
    
	
 
    	
 
    	
 
    	
 
    	
Sunnyvale,   CA 94089
    

 

7Exhibit 10.2

 

SECOND AMENDMENT OF LEASE

 

THIS SECOND AMENDMENT OF LEASE (the “Second Amendment”) is made as of the 12th day of September 2013 (the “Effective Date”) by and between RB KENDALL FEE, LLC (“Landlord”) and MERRIMACK PHARMACEUTICALS, INC., having a mailing address at One Kendall Square, Building 600/700, Cambridge, Massachusetts 02139 (“Tenant”).

 

BACKGROUND:

 

A.            Reference is made to a certain Lease dated August 24, 2012, by and between Landlord and Tenant, as amended by First Amendment of Lease dated March 18, 2013, (the “Lease”), demising approximately 31,747 rentable square feet of space on a portion of the second floor (2nd) of Building 600/650/700 (the “2nd Floor Space”); approximately 4,773 rentable square feet of space on the fourth (4th) floor of Building 650/700 ( the “Additional Space”); approximately 30,626 rentable square feet of space on the fourth (4th) floor of Building 600/700 ( the “4th Floor Space”); approximately 7,245 rentable square feet of space on the mezzanine level of Building 700 (the “Mezzanine Space”); approximately 8,437 rentable square feet of space on the first (1st) floor of Building 600 (the “1st Floor Space”); approximately 8,763 rentable square feet of space located on the fourth (4th) floor of Building 700 (the “Expansion Space I”); approximately 3,388 rentable square feet of space located on the fourth (4th) floor and the fourth (4th) floor mezzanine of Building 650 (the “Expansion Space II”); an area in the basement of the Building containing approximately 132 rentable square feet (“Basement Premises”);  approximately 491 rentable square feet of space on the first (1st) floor of the Building 600/650/700 (the “Chemical Storage Space”) and approximately 2,922 rentable square feet of space in the basement of Building 600/650/700 (the “Storage Space”); approximately 10,608 rentable square feet of space located on the fifth (5th) floor of Building 600 (the “Expansion Space III”); approximately 8,155 rentable square feet of space located on the second (2nd) floor of Building 600 (the “600 Expansion Space”); approximately 784 rentable square feet also located on the second (2nd) floor if Building 600 (the “Hallway Space”) and approximately 249 rentable square feet of space located on the first (1st) floor of Building 600 (the “Additional 1st Floor 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.            Landlord and Tenant want to expand the premises demised under the Lease to include approximately 3,617 rentable square feet of additional space located on the fifth (5th) floor of Building 600 within the Complex, as shown hatched on Exhibit A-1 (the “Expansion Space IV”), and to further 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.             Expansion Space IV.  Effective as of the date Landlord delivers the Expansion Space IV with the Phase I Landlord’s Work (defined below) complete (such date being referred to as the “Expansion Space IV Delivery Date”), the Expansion Space IV shall be deemed added to and incorporated into the Premises demised under the Lease.  As of the Expansion Space IV Delivery Date,

 

 

all references to the Premises in the Lease shall include the Expansion Space IV and all references to Exhibit 2 in the Lease shall be deemed to include and refer to Exhibit A-1 of this Second Amendment as well, as applicable.  The Expansion Space IV shall be delivered to Tenant free of all tenants, occupants, personal property, trade fixtures and equipment, decommissioned in accordance with applicable laws and with all base Building systems (including, without limitation, the HVAC and MEP systems) serving the Expansion Space IV in good working order and, except as otherwise set forth herein with respect to Landlord’s completion of the Landlord’s Work (as defined below), shall be delivered to Tenant in “as-is”, “where-is” condition without any warranty of fitness for use or occupancy, expressed or implied, except as expressly set forth herein.  Except for Landlord’s Work (as defined below), Tenant agrees that Landlord has no work to perform in or on the Expansion Space IV to prepare same for Tenant’s use and occupancy.

 

2.             Term.  The term of the Lease with respect to the Expansion Space IV shall commence on the Expansion Space IV Delivery Date and expire on June 30, 2019, unless otherwise terminated or extended pursuant to the terms and conditions of the Lease.  Upon the request of Landlord, Tenant shall execute a written agreement confirming the Expansion Space IV RCD (as defined below).

 

3.             Early Access.  Tenant shall have the right to enter the Expansion Space IV after the Effective Date of this Second Amendment during normal business hours and without payment of rent but with prior notice to the Building property manager, to commence construction of a 10’ x 12’  electrical room to serve a new generator that is part of the Expansion IV Improvements, provided such entry must be coordinated so as not to interfere with the completion of Landlord’s Work (as hereinafter defined) and further provided that such work is completed in accordance with the terms of the Lease and this Second Amendment.  Any such right of entry shall be subject to all provisions of the Lease (except for payment of rent), and any entry hereunder shall be at the risk of Tenant.  Prior to entering the Expansion Space IV, Tenant shall obtain all insurance Tenant is required to obtain under the Lease as to the Expansion Space IV and shall provide certificates of said insurance to Landlord.  Tenant shall also have the non-exclusive right to use the freight elevators during the construction of Tenant’s Work in the Expansion Space IV subject to reasonable rules and regulations from time to time made by Landlord, including reasonable advanced notice and scheduling.

 

4.             Yearly Rent.  (a) The Yearly Rent for the Expansion Space IV during the term shall be payable in the amounts set forth in the table below, in accordance with the terms of the Lease and shall be in addition to all other amounts due and payable by Tenant pursuant to the Lease, including Yearly Rent for the balance of the Premises.  Tenant’s obligation to pay Yearly Rent, Taxes and Operating Costs for the Expansion Space IV shall commence on the date that is the earlier of (a) the date on which Tenant has an employee population (meaning an aggregate of full time and part time employees) working within Expansion Space III and Expansion Space IV greater than 74% of the employee population for which the combined Expansion Space III and Expansion Space IV were designed (meaning 43 employees) or (b) January 1, 2014 (such earlier date being the “Expansion Space IV RCD”).  Tenant shall provide Landlord with prompt written notice when the 74% threshold is met.

 

	
Period
    	
 
    	
Yearly Rent
    	
 
    	
Monthly Rent
    	
 
    	
Rent Per Rentable
   Square Foot
    	
 
    
	
Expansion Space IV RCD through April 30, 2016
    	
 
    	
$
    	
169,999.00
    	
 
    	
$
    	
14,166.58
    	
 
    	
$
    	
47.00
    	
 
    
	
May 1, 2016 through April 30, 2017
    	
 
    	
$
    	
173,616.00
    	
 
    	
$
    	
14,468.00
    	
 
    	
$
    	
48.00
    	
 
    
	
May 1, 2017 through April 30, 2018
    	
 
    	
$
    	
177,233.00
    	
 
    	
$
    	
14,769.42
    	
 
    	
$
    	
49.00
    	
 
    
	
May 1, 2018 through June 30, 2019
    	
 
    	
$
    	
180,850.00
    	
 
    	
$
    	
15,070.83
    	
 
    	
$
    	
50.00
    	
 
    

 

2

 

(b)           Effective as of the Expansion Space IV RCD, Article 6 of Exhibit 1 of the Lease is hereby modified by deleting in its entirety therefrom the rental table for Expansion Space III, and by replacing it with the following:

 

Expansion Space III

 

	
Period
    	
 
    	
Yearly Rent
    	
 
    	
Monthly Rent
    	
 
    	
Rent Per Rentable
   Square Foot
    	
 
    
	
Expansion Space IV RCD –   April 30, 2014
    	
 
    	
$
    	
456,500.00
    	
 
    	
$
    	
38,041.67
    	
 
    	
$
    	
44.00
    	
 
    
	
May 1, 2014 –   April 30, 2015
    	
 
    	
$
    	
466,875.00
    	
 
    	
$
    	
38,906.25
    	
 
    	
$
    	
45.00
    	
 
    
	
May 1, 2015 –   April 30, 2016
    	
 
    	
$
    	
477,250.00
    	
 
    	
$
    	
39,770.83
    	
 
    	
$
    	
46.00
    	
 
    
	
May 1, 2016 –   April 30, 2017
    	
 
    	
$
    	
487,625.00
    	
 
    	
$
    	
40,635.42
    	
 
    	
$
    	
47.00
    	
 
    
	
May 1, 2017 –   April 30, 2018
    	
 
    	
$
    	
498,000.00
    	
 
    	
$
    	
41,500.00
    	
 
    	
$
    	
48.00
    	
 
    
	
May 1, 2018 –   June 30, 2019
    	
 
    	
$
    	
508,375.00
    	
 
    	
$
    	
42,364.58
    	
 
    	
$
    	
49.00
    	
 
    

 

5.             Landlord’s Work.  Landlord shall, at Landlord’s sole cost and expense, complete the demising and other work in the Expansion Space IV described in Exhibit B-1 attached hereto in a good and workmanlike manner (collectively, the “Landlord’s Work”).  Landlord shall use commercially reasonable and diligent efforts to complete Phase I Landlord’s Work (as designated on Exhibit B-1) as soon as reasonably practicable following the execution of this Second Amendment, it being agreed that the target date for completion of the Phase 1 Landlord’s Work is the date that is four (4) weeks following the date of this Second Amendment (the “Phase 1 Target Date”).  Landlord shall use commercially reasonable and diligent efforts to complete (a) the Phase II Landlord’s Work (as designed on Exhibit B-1) 

 

3

 

by the date that is Work no later than eight (8) weeks following the date Landlord receives Tenant’s final specifications and requirements necessary for the completion of such work (the “Phase II Target Date”), (b) the Phase III Landlord’s Work (as designated on Exhibit B-1) by the date that is no later than twenty (20) weeks following the date Landlord receives Tenant’s final specifications and requirements necessary for the completion of such work (the “Phase III Target Date”), and (c) the Phase IV Landlord’s Work (as designated on Exhibit B-1) by the date that is no later than the date Tenant occupies the Expansion Spaces IV for business purposes (the “Phase IV Target Date”).  If Landlord fails to complete any Phase of the Landlord’s Work in accordance with the terms of this Second Amendment on or before the Respective Target Date set forth above (except if due to delays caused by Tenant or its contractors), then the Expansion Space IV RCD shall be delayed one (1) day for each day by which the completion of Landlord’s Work extends beyond such Target Date.

 

6.             Tenant’s Improvements; Landlord’s Contribution.  (a) Tenant plans to complete certain Tenant’s leasehold improvements to the Expansion Space IV (the “Expansion IV Improvements”) in accordance with the terms and conditions of the Lease (as amended hereby).  In connection with the Expansion IV Improvements, the Landlord’s Contribution (as defined in Section 4.2B of the Lease) is hereby increased by $542,550.00 ($150.00 per rentable square feet of the Expansion Space IV) in the aggregate toward the cost of the design and construction of Expansion IV Improvements and/or the cost of ongoing or future improvements in any portion of the Premises.  The increased Landlord’s Contribution amount described herein shall be paid, and requests therefor shall be made, in the manner provided in Section 4.2 of the Lease with regard to the balance of the Landlord’s Contribution, and shall otherwise be treated in the same manner as the Landlord’s Contribution as described in the Lease except that Section 4.2.D (iii) is inapplicable to the increased Landlord’s Contribution described herein and Tenant shall have no right to requisition any portion of the increased Landlord’s Contribution described herein after December 31, 2016.

 

(b)           The Expansion IV Improvements shall be effected in accordance with the terms and conditions of the Lease, including but not limited to Section 4.2A and Articles 11, 12 and 13.  Without limiting the foregoing, Tenant shall obtain Landlord’s prior written consent for all of the Expansion IV Improvements (and Plans and Specifications therefor [as defined below]), and the contractors, engineers, architects, technicians and mechanics effecting same, which consent shall not be unreasonably withheld, conditioned or delayed.  Tenant shall be responsible for the preparation of construction plans and specifications, including but not limited to architectural, mechanical, electrical, plumbing, life-safety and other Building systems and interfaces therewith (collectively, the “Plans and Specifications”), and any specialty engineering necessary for the completion of the Expansion IV Improvements, all of which shall be subject to Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  Landlord shall be entitled to deduct from Landlord’s Contribution all direct, reasonable third party out-of-pocket expenses incurred by Landlord in reviewing and approving the Plans and Specifications following delivery of detailed invoices for same to Tenant.  Any work to be completed by Tenant in or on the Expansion Space IV shall be performed in accordance with the terms and conditions of the Lease.

 

7.             Rentable Area and Tenant’s Proportionate Shares.

 

(a)           Effective as of the Expansion Space IV RCD, Article 2 of Exhibit 1, Sheet 1 is amended to change the rentable area of Expansion Space III to 10,375 rentable square feet.

 

(b)           Effective as of the Expansion Space IV RCD, Article 9 of Exhibit 1, Sheet 1 is amended to provide that (i) Tenant’s Proportionate Common Area Share for the Expansion Space III is changed to 1.62% and (ii) Tenant’s Proportionate Building Share for the Expansion Space III is changed to 4.59%.

 

4

 

(c)           Effective as of the Expansion Space IV RCD, Article 9 of Exhibit 1, Sheet 1 is amended to provide that (i) Tenant’s Proportionate Common Area Share for the Expansion Space IV is 0.56% and (ii) Tenant’s Proportionate Building Share for the Expansion Space IV shall be 1.60%.

 

8.             Utilities.  Commencing on the Expansion Space IV Delivery Date, Tenant shall pay the cost for its use of utilities in the Expansion Space IV including the consumption of electricity for plugs, lights and heat pumps (if applicable), which consumption is separately metered, either directly to the company or as billed by Landlord.

 

9.             Additional Security Deposit.  Upon the execution of this Second Amendment by Tenant, Tenant shall deliver to Landlord an amendment to the existing Letter of Credit being held by the Landlord under the Lease increasing the amount under the Letter of Credit by $15,642.66 for a total Letter of Credit amount of $583,831.21 or deliver a Substitute Letter of Credit (as defined in Section 29.13 of the Lease) in an amount equal to $583,831.21 representing the combined security amount required under the Lease and this Second Amendment.

 

10.          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 First Amendment other than Colliers International New England LLC and Cassidy Turley FHO (collectively, 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 First 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.

 

11.          Reaffirmation.  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.

 

[Signatures Appear on Following Page]

 

5

 

IN WITNESS WHEREOF the parties hereto have executed this Second 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
    	
MERRIMACK   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:   
    	
/s/   Robert L. Beal
    	
 
    	
By:   
    	
/s/   Jeffrey A. Munsie
    
	
 
    	
Robert   L. Beal, its authorized signatory
    	
 
    	
Name:   Jeffrey A. Munsie
    
	
 
    	
Title:   Vice President and General Counsel
    

 

6

 

EXHIBIT A-1, FIRST AMENDMENT

 

LEASE PLAN FOR EXPANSION SPACE IV

 

 

 

EXHIBIT B-1, FIRST AMENDMENT

 

LANDLORD’S WORK

 

(see attached five pages)

 

 

 

 

9

 

 

10

 

 

11

 

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]