Document:

exv10w17b

 

Exhibit 10.17b

SECOND AMENDMENT TO LEASE

     This SECOND AMENDMENT TO LEASE (this “Second Amendment”) is made as of October 4th, 2006 by
and between Teachers Insurance & Annuity Association of America, Inc., a New York corporation
(“Landlord”), and Helix BioMedix, Inc., a Delaware corporation (“Tenant”).

RECITALS

     Landlord is the landlord and Tenant is the tenant under that certain Lease dated August 14,
2001 (the “Initial Lease”), as modified by First Amendment to Lease dated for reference purposes
December 6, 2005 (the “First Amendment”), for premises located at 22122 20th Avenue SE, Bothell,
Washington, 98021, Building H, Unit 148 (the “Initial Premises” or “H/148”). The Initial
Premises consists of 3,038 rentable square feet (being 2,378 rsf office and 660 rsf warehouse).
As used herein the “Amended Lease” shall mean the Initial Lease as amended by First Amendment,
and the “Lease” shall mean the Amended Lease as modified by this Second Amendment.

     The parties desire to amend the Lease as follows (all on the terms and conditions set forth
in this Second Amendment):

     A. Add to the Initial Premises that certain space consisting of an agreed 2,246
rentable square feet (being 2,246 rsf of office) and located at 22118 20th Avenue
SE, Bothell, Washington, Building G, Unit 204, as shown in the attached Exhibit
A, which is incorporated herein by reference (“Expansion Space” or “G/204”)). The Initial
Premises
and Expansion Space are located in the Project that is legally described and
depicted on
the attached Exhibit B;

     B. Extend the Lease Term for approximately an additional thirty-six (36) full
calendar months;

     C. Make certain other modifications to the Lease, all on the following terras
and conditions.

     Except as otherwise specifically defined herein all capitalized terms shall have the
meanings assigned in the Initial Lease.

AGREEMENT

     In furtherance of the Recitals set forth above, which are incorporated herein by reference,
and in consideration of the mutual promises and covenants set forth below, and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the parties acknowledge
and agree to the following:

     1. Addition of Expansion Space. On December 1, 2006 (“Expansion Space Addition Date”), the
Expansion Space shall be added to the Initial Premises. Notwithstanding anything to the contrary
in the Lease, the Expansion Space shall be used by Tenant only for general office and
administrative use for a company specializing in the research and development of
biopharmaceutical products involving bioactive peptides. From and after the Expansion Space
Addition Date, (i) the term “Premises” as used in the Lease shall include both the Initial
Premises and the Expansion Space, (ii) Section l(e) of the Amended Lease shall be revised such
that the total Premises shall consist of an agreed 5,284 rentable square feet, and (iii)
Tenant’s Share of Expenses shall be recalculated to reflect the increased rentable square
footage of the Premises. If the Expansion Space is not delivered to Tenant with Landlord’s Work
in the Expansion Space (as defined in Section 9 below) substantially complete by December 1,
2006, this Second Amendment shall not be void or voidable, nor shall
Landlord be liable to Tenant for any loss or damage resulting therefrom. However, if the
Expansion Space is not delivered by Landlord to Tenant on or before December 1, 2006 with
Landlord’s Work in the Expansion Space substantially completed, then the Expansion Space
Addition Date shall be the first to occur of the following events: (i) the date on which
Landlord notifies Tenant that Landlord’s Work in the Expansion

 

 

Space is substantially complete (Landlord agrees to use reasonable efforts to provide three (3)
business days prior notice to Tenant of such date), (ii) the date on which Tenant takes
possession or commences beneficial occupancy of the Expansion Space, or (iii) if substantial
completion of Landlord’s Work in the Expansion Space is delayed due to (a) Tenant’s failure to
perform its obligations under this Second Amendment, the Work Letter Agreement or the Lease, (b)
changes to the Tenant Improvement Plans required by Tenant or (c) elements of the Tenant
Improvements that are required by Tenant but that cannot reasonably be performed in the
timeframes set forth in Landlord’s Work Schedule, then the date determined by Landlord as the
date upon which Landlord’s Work would have been substantially completed, but for the occurrence
of the same.

     2. Extended Term of the Lease. Section l(g) of the Initial Lease is hereby
amended to extend the Term of the Lease for an additional term (“Second Extended Term”)
commencing on December 1, 2006 (“Second Extended Term Commencement Date”) and
terminating on the last day of the thirty-sixth (36th) full calendar month
following the Expansion
Space Addition Date (“Expiration Date” or “Second
Extended Term Expiration Date”).

     3. Base Monthly Rent. From and after the Second Extended Term Commencement
Date, Section l (h) of the Initial Lease is hereby modified such that the Base Monthly Rent
for the
Initial Premises shall be as follows: (“Month” refers to the period through the full
applicable
calendar month)

	 	 	 
	H/148
	Time Period	 	Base Monthly Rent
	Second Extended Term Commencement Date — Month
12
	 	$3,369.00
	Month 13 – Month 24
	 	$3,470.00
	Month 25 – Second Extended Term Expiration Date
	 	$3,574.00

     From and after the Expansion Space Addition Date, Section l (h) of the Initial Lease is
hereby modified such that the Base Monthly Rent for the Expansion Space shall be as follows:
(“Month” refers to the period through the full applicable calendar month). Base Monthly Rent for
the Expansion Space shall be in addition to Base Monthly Rent for the Initial Premises.

	 	 	 
	G/204
	Time Period	 	Base Monthly Rent
	Expansion Space Addition Date — Month 12
	 	$2,695.00
	Month 13 – Month 24
	 	$2,776.00
	Month 25 – Second Extended Term Expiration Date
	 	$2,859.00

     4. Security Deposit. At the same time as it signs and delivers this Second
Amendment, Tenant shall deliver an additional $4,201.00 as a Security Deposit under the Lease
(such that the total Security Deposit shall be $8,512) and an additional nonrefundable
cleaning
fee of $125.

     5. Parking.
From and after the Expansion Space Addition Date, the first
(1st)
sentence of Section 11 of the Initial Lease hereby is deleted and replaced with the following
sentences: “Landlord grants to Tenant and Tenant’s customers, suppliers, employees and
invitees, a
non-exclusive license to use up to nineteen (19) surface, unreserved parking stalls in the
designated
parking areas in the Project, for the use of motor vehicles during the term of this Lease.”

     6. Cable. Section 26 of the Initial Lease hereby is modified by placing an “(a)” at
the beginning of the first (1st) paragraph and a “(b)” at the beginning of the
second (2nd)
paragraph. The following new Section 26(c) hereby is added to the Initial Lease:

     c. Cable.

	 	  (1)	 	Within thirty (30) days after the expiration or sooner
termination of the Lease or at any time that any of the Wires (as defined
below) are no longer in active use by Tenant, Landlord may elect by written
notice to Tenant to:

 

 

	 	(a)	 	Retain any or all wires, cables, and similar installations
appurtenant thereto (“Wires”) installed by Tenant within the
Premises or anywhere in the Building outside the Premises,
including, without limitation, the plenums or risers of the Building;
	 
	 	(b)	 	Remove any or all of the Wires and restore the Premises or the
Building, as the case maybe, to their condition existing prior to the
installation of the Wires (“Wire Restoration Work”). Landlord, at
its option, may perform such Wire Restoration Work at Tenant’s
sole (but reasonable) cost and expense; or
	 
	 	(c)	 	Require Tenant to perform all or part of the Wire Restoration Work
at Tenant’s sole cost and expense.

	 	(2)	 	In the event that Tenant discontinues the use of all or any part of the Wires
or is no longer using all or any part of the Wires, Tenant shall within thirty
(30) days thereafter notify Landlord of same in writing, accompanied by a
plan or other reasonable description of the current type, quantity, points of
commencement and termination, and routes of the Wires to allow
Landlord to determine if Landlord desires to retain same.
	 
	 	(3)	 	In the event Landlord elects to retain any or all of the Wires, Tenant
covenants that:

	 	(a)	 	Tenant shall be the sole owner of the Wires, Tenant shall have the
sole right to surrender the Wires, and the Wires shall be free of all
liens and encumbrances; and
	 
	 	(b)	 	All Wires shall be left in good condition, working order, properly
labeled and capped or sealed at each end and in each
telecommunications/electrical closet and junction box, and in safe
condition.

	 	(4)	 	Notwithstanding anything to the contrary in this Lease, Landlord may
retain Tenant’s Security Deposit after the expiration or sooner termination
of the Lease until one of the following events has occurred with respect to
all of the Wires:

	 	(a)	 	Landlord elects to retain the Wires pursuant to Paragraph (l)(a)
above;
	 
	 	(b)	 	Landlord elects to perform the Wire Restoration Work pursuant to
Paragraph (1 )(b) above and the Wire Restoration Work is complete
and Tenant has fully reimbursed Landlord for all reasonable costs
related thereto; or
	 
	 	(c)	 	Landlord elects to require Tenant to perform the Wire Restoration
Work pursuant to Paragraph (l)(c) above and the Wire Restoration
Work is complete and Tenant has paid for all reasonable costs
related thereto.

	 	(5)	 	In the event that Tenant fails or refuses to pay all reasonable costs of the
Wire Restoration Work within thirty (30) days of Tenant’s receipt of
Landlord’s notice requesting Tenant’s reimbursement for or payment of such
costs or otherwise fails to comply with the provisions of this Clause,
Landlord may apply all or any portion of Tenant’s Security Deposit toward
the payment of any reasonable costs or expenses relative to the Wire
Restoration Work or Tenant’s obligations under this Clause. The retention
or application of such Security Deposit by Landlord pursuant to this Clause
does not constitute a limitation on or waiver of Landlord’s right to seek
further remedy under law or equity.
	 
	 	(6)	 	The provisions of this Section 26(c) shall survive the expiration or sooner
termination of the Lease.

 

 

     7. Limitation of Landlord’s Liability. Section 27 of the Initial Lease is hereby
deleted in its entirety and the following language set in its place:

27. limitation of landlord’s liability. notwithstanding anything to the contrary in
this lease, and in consideration of the benefits accruing hereunder, tenant agrees that, in
the event of any actual or alleged failure, breach or default of this lease by landlord,
landlord’s liability under this lease shall be limited to, and tenant shall look only to
the interest of landlord in the building, including all rents, proceeds and profits
therefrom. tenant shall look solely to landlord’s interest in the building, including all
rents, proceeds and profits therefrom, for the recovery of any judgment or award against
landlord. landlord shall not be personally liable for any judgment or deficiency, and in no
event shall landlord be liable to tenant for any lost profit, damage to or loss of business
or any form of special, indirect or consequential damage. before filing suit for an alleged
default by landlord, tenant shall give landlord notice and reasonable time to cure the
alleged default.

     8. Miscellaneous Provisions. Section 29(h) of the Initial Lease hereby is deleted in
its entirety and the following language set in its place:

     h. Landlord’s Successors. In the event of a sale or conveyance by Landlord of the
Project, the same shall operate to release Landlord from any liability under this Lease,
and in such event Landlord’s successor in interest shall be solely responsible for all
obligations of Landlord under this Lease. If only a portion of the Project is sold, this
Lease shall run with the portion of the Project on which the Building is located, and
Tenant’s Share shall be equitably adjusted based on the ratio of Tenant’s square footage to
the total square footage of premises in the Project so as to reflect the deletion of any
other buildings from the Project.

     9. As Is; Landlord’s Work. Tenant leases the Initial Premises and Expansion
Space in their as-is, where-is-condition and acknowledges that Landlord has not agreed to and
shall not be required to make any improvements or alterations to the same, except for the work
set forth in the attached Exhibit C (“Landlord’s Work” or “Tenant Improvements”). Tenant
agrees to cooperate with Landlord with respect to Landlord’s performance of such Tenant
Improvements.

     10. Brokers. Tenant was represented in this Second Amendment transaction by Bill
Neil of GVA Kidder Mathews, who shall be compensated by Landlord pursuant to a separate
written agreement. Except for the broker set forth in the preceding sentence, each party
shall
indemnify, defend and hold the other party harmless from and against all costs, expenses,
attorneys’ fees, liens and other liability for commissions or other compensation claimed by
any
broker or agent claiming the same by, through, or under that party.

     11. OPTION TO RENEW. Tenant is hereby granted the right to extend the Term
of this Lease only with respect to H/148 (and not with respect to G/204) beyond the Expiration
Date of the Second Extended Term for one (1) successive period of thirty-six (36) months (the
“Third Extended Term”). This right to extend may be exercised by Tenant only by giving
Landlord written notice (“Notice”) no sooner than twelve (12) months and no later than
nine (9)
months prior to the Expiration Date of the Second Extended Term. If at the time of Tenant’s
notice, Tenant is in default of its obligations under the Lease beyond any applicable cure
period, then Tenant’s Notice to extend the Lease for the Third Extended Term shall be invalid. Tenant’s
right to extend the Lease for the Third Extended Term is personal to Tenant and may not be
exercised by any subtenant or assignee of Tenant. From and after the commencement of the
Third Extended Term, all of the terms, covenants, and conditions of the Lease shall continue
in full force and effect as written, except that Section 11 of this Second Amendment shall be
deleted in its entirety and Base Monthly Rent for the Third Extended Term shall be at the rate

 

 

then being paid under new leases for similarly improved and situated premises in the Canyon Park
Business Center of which this Project is a part, but not less than the Base Monthly Rent in effect
for the last month of the Second Extended Term. Tenant shall include with its Notice copies of
Tenant’s then-current financial statement as well as financial statements from the three (3) years
prior to the current financial statement year, and shall provide Landlord with such other financial
information regarding Tenant as Landlord may require. Tenant’s right to extend the Term of this
Lease for the Third Extended Term is contingent upon Landlord’s approval, in its reasonable
discretion, of such financial statements and information. Tenant shall have no options to renew the
Lease beyond the Second Extended Term except as set forth in this paragraph; Section 5 of the First
Amendment hereby is deleted in its entirety and of no further force and effect.

     12. Full Force and Effect. Except as modified herein, all other terms and conditions
of the Lease shall remain in full force and effect. Tenant confirms that Landlord is not now
and has not in the past been in default under the Lease, and Tenant has no claim against Landlord
for damages or offset of any type.

     13. Entire Agreement. This Second Amendment and the Amended Lease constitute
the entire agreement between Landlord and Tenant with respect to the subject matter of this
Second Amendment.

Landlord:
Teachers Insurance & Annuity Association of America. Inc., a New York
corporation

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Derek Landry
 

	 	 
	 

	 	 	 	Derek Landry	 	 
	 

	 	Its:
	 	Director	 	 
	 

	 	 	 	 	 	 

Tenant:
        Helix BioMedix, Inc., a Delaware corporation

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David Kirske
 

	 	 
	 

	 	 	 	David Kirske	 	 
	 

	 	Its:
	 	CFO	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit A

The Expansion Space

	 	 	 
	     Office = 2,246

Warehouse = 0

     Total = 2,246 rsf

	 	

 

 

Exhibit B

(The Project)

LEGAL
DESCRIPTION -PHASE II (Buildings G — H)

THAT PORTION OF THE WEST HALF OF SECTION 29 AND OF THE EAST HALF OF SECTION 30, TOWNSHIP 27 NORTH,
RANGE 5 EAST, W.M., SNOHOMISH COUNTY, WASHINGTON. DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE AMENDED PLAT OF VILLAGE SQUARE,
ACCORDING TO THE PLAT RECORDED IN VOLUME 42 OF PLATS, PAGES 193 THROUGH 198,
INCLUSIVE, RECORDS OF SAID COUNTY, SAID POINT BEING NORTH 88 47’ 26” EAST 627.20 FEET
FROM THE NORTHWEST CORNER OF SAID PLAT;

THENCE NORTH 88 47’ 26” EAST 363.00 FEET ALONG SAID NORTH
LINE TO THE NORTHEAST

CORNER OF SAID PLAT;

THENCE NORTH 46 29’ 12” EAST 547.38 FEET TO A POINT ON A 325 FOOT RADIUS CURVE CONCAVE
TO THE NORTHEAST, A RADIAL THROUGH SAID POINT BEARING NORTH 46 29’ 12” EAST;

THENCE NORTHWESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 196.99 FEET TO A POINT OF
REVERSE CURVE WITH A 775.00 FOOT RADIUS CURVE TO THE LEFT;

THENCE NORTHERLY ALONG SAID 775.00 FOOT RADIUS CURVE AN ARC DISTANCE
OF 112.88 FEET;

THENCE SOUTH 70 40’ 00” WEST 272.00 FEET TO THE POINT OF CURVE OF A 450.00 FOOT RADIUS
CURVE TO THE LEFT;

THENCE WESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 160.66 FEET;

THENCE SOUTH 80 52’ 00” WEST 170.32 FEET;

THENCE SOUTH 68 59’ 47” WEST 110.41 FEET;

THENCE SOUTH 14 04’ 41” EAST 278.91 FEET;

THENCE SOUTH 17 06’ 43” WEST 170.08 FEET TO THE POINT OF BEGINNING;

TOGETHER WITH AN EASEMENT FOR INGRESS, EGRESS AND UTILITIES 25.00 FEET WIDE, BEING 12.50 FEET ON
EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE;

BEGINNING AT THE NORTHEAST CORNER OF THE ABOVE DESCRIBED PARCEL;

THENCE SOUTH 70 40’ 00” WEST 272.00 FEET TO THE POINT OF A CURVE OF A 450.00 FOOT RADIUS

CURVE TO THE LEFT;

THENCE WESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 160.66 FEET TO THE TERMINUS OF

SAID CENTERLINE AND EASEMENT.

SITUATE IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON.

Cross hatched area denotes Project.

 

 

EXHIBIT C

WORK LETTER AGREEMENT

     This Work Letter Agreement is entered into in conjunction with that certain Second
Amendment to Lease Agreement dated                      by and between Teachers Insurance &
Annuity Association of America, Inc., a New York corporation (“Landlord”), and Helix BioMedix, Inc.
a Delaware corporation (“Tenant”).

RECITALS

     A. Concurrently with the execution of this Work Letter Agreement, Landlord and
Tenant have entered into a Second Amendment to Lease (the “Second Amendment”) under
which, among other things, Tenant has leased certain additional space (“Expansion Space”) from
Landlord, as more particularly described in the Second Amendment. Capitalized terms not
defined in this Exhibit C shall have the meaning ascribed to them in the Second Amendment and
Amended Lease.

     B. In order to induce Tenant to enter into the Second Amendment and in
consideration of the mutual covenants hereinafter contained, Landlord and Tenant hereby agree
as follows:

1. COMPLETION SCHEDULE.

     Following the execution of the Second Amendment, Landlord shall deliver to Tenant a schedule
(the “Work Schedule”) setting forth a timetable for the planning and completion of the
installation of the Tenant Improvements to be constructed in the Premises. The Work Schedule shall
set forth each of the various items of work to be done by or approval to be given by Landlord and
Tenant in connection with the completion of the Tenant Improvements. Such Schedule shall be the
basis for completing the Tenant Improvement work. Tenant agrees to act reasonably and promptly in
reviewing and responding to all schedules, drawings, specifications, budgets and other such items
related to Landlord’s Work.

2. TENANT IMPROVEMENTS.

     The terms “Tenant Improvements” and “Landlord’s Work” shall include all work to be done in
the Premises pursuant to the Tenant Improvement Plans described in Paragraph 3 below, including,
but not limited to, partitioning, doors, ceilings, floor coverings, wall finishes (including paint
and wallcovering), electrical (including lighting, switching, telephones, outlets, etc.) and
plumbing.

3. TENANT IMPROVEMENT PLANS.

     Upon Landlord’s request, Tenant agrees to meet with Landlord’s architect and/or space
planner for the purpose of preparing a space plan for the layout of the Premises. Based upon such
space plan, which must be approved of by both Landlord and Tenant, Landlord’s architect shall
prepare final working drawings and specifications for the Tenant Improvements. Such final working
drawings and specifications may be referred to herein as the “Tenant Improvement Plans.” The
Tenant Improvement Plans must be approved of by both Landlord and Tenant, and must be consistent
with Landlord’s standard specifications (the “Standards”) for tenant improvements for the
Building, as the same may be changed from time to time by Landlord. Both Landlord and Tenant agree
to act reasonably and promptly in reviewing and responding to requests for approval of the space
plan and the Tenant Improvement Plans.

4. NON-STANDARD TENANT IMPROVEMENTS.

     Landlord shall permit Tenant to deviate from the Standards for the Tenant Improvements;
provided that (a) the deviations shall not be of a lesser quality than the Standards; (b) the
total lighting for the Premises shall not exceed 1.65 watts per rentable square foot; (c) the
deviations conform to applicable governmental regulations and necessary governmental permits and
approvals have been secured; (d) the deviations do not require building service beyond the level
normally provided to other tenants in the Building and do not overload the floors; (e) Landlord
has

 

 

reasonably determined that the deviations are of a nature and quality that are consistent
with the overall objectives of the Landlord for the Building; and (f) any costs related to such
deviations shall be borne by Tenant.

5. FINAL PRICING AND DRAWING SCHEDULE.

     After the preparation of the space plan and after Tenant’s written approval thereof, in
accordance with the Work Schedule, Landlord shall cause its architect to prepare and submit to
Tenant the final working drawings and specifications referred to in Paragraph 3 hereof. Such
working drawings shall be approved by Landlord and Tenant in accordance with the Work Schedule and
shall thereafter be submitted to the appropriate governmental body by Landlord’s architect for
plan checking and the issuance of a building permit. Landlord, with Tenant’s cooperation, shall
cause to be made any changes in the plans and specifications necessary to obtain the building
permit. Concurrent with the plan checking, Landlord shall have prepared a final pricing for
Tenant’s approval, in accordance with the Work Schedule, taking into account any modifications
which may be required to reflect changes in the plans and specifications required by the City or
County in which the Premises are located. After final approval of the working drawings, no further
changes to the Tenant Improvement Plans may be made without the prior written approval from both
Landlord and Tenant, and then only after agreement by Tenant to pay any excess costs resulting
from the design and/or construction of such changes. Tenant hereby acknowledges that any such
changes shall be subject to the terms of Paragraph 7 hereof.

6. CONSTRUCTION OF TENANT IMPROVEMENTS.

     After the Tenant Improvement Plans have been prepared and approved, the final pricing has
been approved and a building permit for the Tenant Improvements has been issued, Landlord shall
enter into a construction contract with its contractor for the installation of the Tenant
Improvements in accordance with the Tenant Improvement Plans. Landlord shall supervise the
completion of such work and shall use commercially reasonable efforts to secure substantial
completion of the work in accordance with the Work Schedule. The cost of such work shall be paid
as provided in Paragraph 7 hereof. Landlord shall not be liable for any direct or indirect damages
as a result of delays in construction beyond Landlord’s reasonable control, including, but not
limited to, acts of God, inability to secure governmental approvals or permits, governmental
restrictions, strikes, availability of materials or labor or delays by Tenant (or its architect or
anyone performing services on behalf of Tenant).

7. PAYMENT OF COST OF THE TENANT IMPROVEMENTS.

a.
Landlord hereby grants to Tenant (1) a “G/204 Tenant Allowance” up to and not to exceed
Twenty-Four Thousand Seven Hundred Six Dollars ($24,706.00) to be applied towards Tenant
Improvements to G/204; and (2) an “H/148 Tenant Allowance” up to and not to exceed Nine Thousand
One Hundred Fourteen Dollars ($9,114) to be applied towards Tenant Improvements to H/148. The
G/204 Tenant Allowance and H/148 Tenant Allowance may each be referred to herein as a “Tenant
Allowance” and are collectively referred to as the “Tenant
Allowances.” The Tenant Allowances
shall be used only for:

     (1) Payment of the cost of preparing the space plan and the final working drawings and
specifications, including electrical, plumbing and structural drawings and of all other
aspects of the Tenant Improvement Plans. Without limitation, the Tenant Allowances will not be used for the
payment of (i) relocation costs; (ii) security access control equipment; (iii) interior
signage or graphics; and/or (iv) extraordinary design work not included within the scope of Landlord’s
building standard improvements or for payments to any other consultants, designers or
architects other than Landlord’s architect and/or space planner.

     (2) The payment of plan check, permit and license fees relating to construction of the
Tenant Improvements.

     (3) Construction of the Tenant Improvements, including, without limitation, the
following:

 

 

          (a) Installation
within the Premises of all partitioning, doors, floor coverings, ceilings, wall coverings and painting, millwork and similar items.

          (b) All electrical wiring, lighting fixtures, outlets and switches, and other
electrical work to be installed within the Premises.

          (c) The furnishing and installation of all duct work, terminal boxes, diffusers
and accessories required for the completion of the heating, ventilation and air conditioning
systems within the Premises, including the cost of meter and key control for after-hour air
conditioning.

          (d) Any additional Tenant requirements including, but not limited to, odor
control, special heating, ventilation and air conditioning, noise or vibration control or
other special systems.

          (e) All fire and life safety control systems such as fire walls, sprinklers, halon,
fire alarms, including piping, wiring and accessories installed within the Premises.

          (f) All plumbing, fixtures, pipes and accessories to be installed within the
Premises.

          (g) Testing and inspection costs.

          (h) Contractor’s fees, including but not limited to any fees based on general
conditions.

     (4) All other costs to be expended by Landlord in the construction of the Tenant
Improvements, including those costs incurred by Landlord for construction of elements of the
Tenant Improvements in the Premises.

b. The cost of each item of the Tenant Improvements shall be charged against the applicable
Tenant Allowance. In the event that the cost of designing and constructing the Tenant
Improvements, as established by Landlord’s final pricing schedule, shall exceed the applicable
Tenant Allowance, or if any of the Tenant Improvements are not to be paid out of the Tenant
Allowance as provided in Paragraph 7a above, the excess shall be paid or bonded by Tenant to
Landlord prior to the commencement of construction of the Tenant Improvements.

c. In the event that, after the Tenant Improvement Plans have been prepared and a price
therefore established by Landlord, Tenant shall require any changes or substitutions to the Tenant
Improvement Plans, any additional costs thereof shall be paid by Tenant to Landlord prior to the
commencement of such work. Landlord shall have the right to decline Tenant’s request for a
change to the Tenant Improvement Plans it such changes are inconsistent with Paragraphs 3 and 4
above, or if the change would, in Landlord’s opinion, unreasonably delay construction of the Tenant
Improvements.

d. In the event that the cost of the Tenant Improvements increases as set forth in Landlord’s
final pricing schedule for any reason whatsoever, including without limitation the requirements of
any governmental agency, Tenant shall pay Landlord the amount of such increase within ten (10)
days of Landlord’s written notice; provided, however, that Landlord shall first apply toward such
increase any remaining balance in the applicable Tenant Allowance; and further provided that,
unless such cost is not covered by the available Tenant Allowance and is not received within such
ten (10) day period, Landlord will not delay its construction of the Tenant Improvements because of
such increase.

e. Any portion(s) of the Tenant Allowances that is not used by the Expansion Space Addition
Date shall be retained by Landlord; provided only that if Tenant does not use the entire G/204
Tenant Allowance, then Tenant may apply up to $4,492 of such unused portion towards the costs of
telephone and data cabling in G/204.

8. MISCELLANEOUS

 

 

     Either party’s default or failure to perform under this Work Letter Agreement shall be
a default under the Lease, and without limiting any other rights, the non-defaulting party shall be
entitled to all of its remedies under the Lease with respect to such default. Any amounts owed by
Tenant to Landlord under this Work Letter Agreement shall be Additional Rent owed under the Lease.

 

 

STATE OF California      )

                                          )ss.

COUNTY OF Orange      )

          I certify that I know or have satisfactory evidence that Derek Landry is the person who
appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated
that he/she was authorized to execute the instrument and acknowledged it as the Director of
Teachers Insurance & Annuity Association of America. Inc. to be the free and voluntary act of such
party for the uses and purposes mentioned in the instrument.

          Dated: 10/04/04

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Kari Mcgowan	 	 
	 	 	 	 	 	 	 
	(SEAL)

	 	 	 	(Signature)	 	 
	 	 	 	 	Kari Mcgowan
	 	 	 	 	 	 	 
	 	 	 	 	(Print Name)

Notary Public, in and for the State of, CA

residing at Newport Beach

My Commission Expires 12/02/09

STATE OF Washington       )

                                              )ss.

COUNTY OF                       )

     I certify that I know or have satisfactory evidence that David Kirske is the
person who appeared before me, and said person acknowledged that he/she signed this instrument,
on oath stated that he/she was authorized to execute the instrument and
acknowledged it as the CFO of Helix BioMedix, Inc. to be the free and voluntary act of
such party for the uses and purposes mentioned in the instrument.

          Dated: 9-21-06

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen A. Martinez	 	 
	 	 	 	 	 	 	 
	(SEAL)

	 	 	 	(Signature)	 	 
	 	 	 	 	Karen A. Maitiner
	 	 	 	 	 	 	 
	 	 	 	 	(Print Name)

Notary Public, in and for the State of WA,

residing at Snohomish WA

My Commission Expires 7-17-10exv10w24

 

Exhibit 10.24

NON-EXCLUSIVE LICENSE AGREEMENT

          This Non-Exclusive License Agreement (the “Agreement”) is entered into and effective as of
December 12, 2006 (“Effective Date”), by and between Helix BioMedix, Inc. a Delaware corporation
with its principal place of business at 22122 — 20th Avenue SE, Bothell, WA 98021 (“Licensor”), and
Grant Industries, Inc. a New Jersey corporation with its principal place of business at 103 Main
Avenue, Elmwood Park, NJ 07407 (“Licensee”). Licensor and Licensee each may be referred to in this
Agreement individually as a “Party” or collectively as the “Parties.”

RECITALS

          WHEREAS, Licensor has developed a library of proprietary bioactive peptides; and

          WHEREAS, Licensee desires to obtain a non-exclusive license to market, sell and distribute
certain of such peptides, either alone or in conjunction with other products, upon the terms and
conditions hereinafter set forth.

AGREEMENT

          NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, do agree as follows:

1 – DEFINITIONS

          For the purposes of this Agreement, the following words and phrases shall have the following
meanings:

          1.1 “Affiliate” means any entity that directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with another entity. For
purposes of this definition only, “control”, and, with correlative meanings, the terms “controlled
by” and “under common control with” shall mean (a) the possession, directly or indirectly, of the
power to direct the management or policies of a party, whether through the ownership of voting
securities or by contract relating to voting rights or corporate governance, or (b) the ownership,
directly or indirectly, of more than twenty-five percent (25%) of the voting securities or other
ownership interest of a party; provided that, if local law restricts foreign ownership, control
will be established by direct or indirect ownership of the maximum ownership percentage that may,
under such local law, be owned by foreign interests.

          1.2 “Applicable Law” means the applicable laws, rules, and regulations, including any rules,
regulations, guidelines, or other requirements of the Regulatory Authorities, that may be in effect
from time to time in the Territory.

Confidential treatment has been requested for portions of this exhibit. This exhibit omits the information subject to the confidential treatment request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

1

 

          1.3 “Confidential Information” means the terms and conditions of this Agreement, all
non-public information related to the Peptides, all Know-How, and all other information, data,
reports and other records that a Party to this Agreement receives from the other Party to this
Agreement.

          1.4 “GAAP” means United States generally accepted accounting principles consistently applied.

          1.5 “Know-How” means trade secrets, knowledge, information, expertise, data, materials and
know-how that are owned, have been developed and/or created or are developed during the term of
this Agreement by or for the Licensor related to the research, development, use or manufacture of
the Peptides.

          1.6 “Market” means the cosmetic- and over-the-counter- personal-care products market.

          1.7 “Net Revenue” means [***].

          1.8
“Patents” means the patents and patent applications
set forth in Exhibit A.

          1.9
“Peptides” means Licensor’s proprietary bioactive peptides described in Exhibit A attached to this Agreement. Licensor may add peptides that are proprietary
to Licensor to Exhibit A at its sole discretion.

          1.10 “Premix” means a formulation other than a final formulation that is manufactured by
Licensee and that incorporates any single Peptide (as defined above), regardless of what
ingredients (of Licensee or any third party) other than Peptide may be included in such
formulation.

          1.11 “Regulatory Authorities” means any applicable governmental entities regulating or
otherwise exercising authority in the Territory.

          1.12 “Royalties” means the royalties payable by Licensee set forth in Exhibit C, which
shall be paid in accordance with Section 3.

          1.13 “Sublicensee” means any third party to which rights hereunder are sublicensed in
accordance with Section 2.2 (including any further sublicensees of a sublicensee).

          1.14 “Territory” means the countries or other geographic areas set forth in Exhibit B,
as such exhibit may be amended from time to time pursuant to the terms hereof.

2 – LICENSE GRANT

          2.1 License. Subject to the terms and conditions of this Agreement, Licensor hereby
grants to Licensee a non-exclusive right and license, under the Patents and the Know-How, to (i)
purchase the Peptides in pure form, at Licensee’s expense, from [***] or another manufacturer

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

2

 

approved in advance by Licensor in writing (or from Licensor, subject to availability and on
terms as may be agreed between Licensee and Licensor); (ii) formulate the Peptides into Premix;
provided that no Premix may contain more than one Peptide; and (iii) market, sell and distribute
the Premix to manufacturers in the Market in accordance with Section 2.2, in each case in the
Territory and for commercial purposes only. The licenses granted herein shall be non-exclusive, and
Licensee acknowledges and agrees that Licensor intends to grant the same or similar rights to other
parties.

          2.2 Sublicense. Subject to the terms and conditions of this Agreement, Licensee may
grant rights to third parties that purchase Premix from Licensee to (i) market, sell and distribute
such Premix to manufacturers in the Market and (ii) incorporate such Premix into final products
within the Market and market, sell and distribute such final products, in each case in the
Territory and for commercial purposes only. Licensee shall notify Licensor of the identity of each
Sublicensee promptly after any sublicense of rights is made hereunder. Licensee shall recommend in
writing to each Sublicensee that Peptide (considered in pure form) be present in any final
formulation at a concentration level not less than those set forth in Exhibit A with
respect to each Peptide, and as agreed between the Parties with respect to any Peptide that may be
added to Exhibit A pursuant to Section 1.9. Further, Licensee shall use its best efforts
to prevent any use, sale, marketing or distribution of Premix or any product containing Premix by
any third party in a manner inconsistent with the terms or intent of this Agreement, and failing
such prevention, to promptly notify Licensor of any such inconsistent use, sale, marketing or
distribution by a third party.

          2.3 No Other Rights. Except as expressly set forth in this Agreement, Licensor shall
retain all right, title and interest in and to the Patents, the Peptides and all Know-How, and
nothing in this Agreement shall be construed to confer any rights upon Licensee by implication,
estoppel or otherwise other than as expressly set forth in this Agreement.

          2.4 Modification of Territory. Exhibit B may be amended from time to time
upon request by Licensee and with the consent of Licensor, which consent shall not be unreasonably
withheld. Without limiting the generality of the foregoing, Licensor’s withholding of consent shall
be deemed reasonable as to a country or geographic region if at the time of the request by
Licensee, Licensor is or is considering doing business (directly or indirectly) with respect to
such country or geographic region, which business involves or may involve any Peptide.

          2.5 No Assignment of Improvements. For avoidance of doubt, Licensee does not
assign or otherwise transfer to Licensor hereunder any right, title or interest in or to any
improvements or inventions relating to, based upon, or derived from the Peptides that may be made
by Licensee in connection with its performance under this Agreement.

3 – PAYMENTS

          3.1 Royalties. Within thirty (30) days after the end of each calendar month during
the term of this Agreement, Licensee shall provide to Licensor records that fairly reflect the Net

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

3

 

Revenue attributable to such calendar month and the concentration of Peptide in any Premix
from which such Net Revenue was derived. The Royalties owing on the basis of such records shall be
invoiced to Licensee by Licensor and shall be paid by Licensee within thirty (30) days of the date
of each invoice.

          3.2 Minimum Royalties. Licensee agrees to comply with the minimum Royalty payment
obligations set forth in Exhibit C hereto during the term of this Agreement.

          3.3 Payment Method. All amounts payable by Licensee to Licensor pursuant to this
Agreement shall be paid in U.S. dollars by wire transfer in immediately available funds to an
account designated by Licensor. Any payments or portions thereof due hereunder which are not paid
on the date such payments are due under this Agreement shall bear interest at a rate equal to the
lesser of (i) the prime rate as published in The Wall Street Journal, Western Edition, on the first
day of each calendar month in which such payments are overdue, plus seven percentage points, or if
less, (ii) the maximum rate permitted by law, calculated on the number of days such payment is
delinquent, compounded monthly.

4 – REPORTS

          4.1 Progress Reports. Each month during the term, the Parties shall discuss via
teleconference or other agreed-upon means the progress of the Agreement, in connection with which
Licensee shall (a) describe any commercialization activities with respect to the Peptides and any
other work relating to the Peptides that it has performed, or caused to be performed, since the
last such report, (b) evaluate the work performed in relation to the goals of this Agreement and
Licensee’s work plans and (c) provide such other information as may be required by this Agreement
or reasonably requested by Licensor relating to such activities.

          4.2 Record Retention. Licensee shall maintain complete and accurate books, records
and accounts that fairly reflect Peptide concentrations and quantities sold by customer in
sufficient detail and in accordance with GAAP to confirm Licensee’s compliance with the terms and
conditions of this Agreement and the accuracy of any payments required hereunder, which books,
records and accounts shall be retained by Licensee until the later of (i) three (3) years after the
end of the period to which such books, records and accounts pertain and (ii) such longer period as
may be required under Applicable Law.

          4.3 Audit. Licensor shall have the right to have an independent certified public
accounting firm of nationally recognized standing, reasonably acceptable to Licensee, have access
during normal business hours, and upon reasonable prior written notice, to such records of the
Licensee as may be reasonably necessary to verify compliance by Licensee with the terms and
conditions of this Agreement and the accuracy of any payments required hereunder for any calendar
month ending not more than forty-eight (48) months prior to the date of such request; provided,
however, that Licensor shall not have the right to conduct more than one such audit in any twelve
(12)-month period. Licensor shall bear the cost of such audit unless the audit reveals a variance
in any payments required hereunder of more than 5%, in which case Licensee shall bear the cost of
the audit.

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

4

 

          4.4 Payment of Additional Amounts. If, based on the results of an audit, additional
payments are owed by Licensee, it shall make such additional payments, with interest from the date
originally due at the rate of 1% per month, within thirty (30) days after the date on which the
accounting firm’s written report is delivered to Licensee.

          4.5 Confidentiality. Licensor shall treat all information subject to review under
this Section 4 in accordance with the confidentiality provisions of Section 6 of this Agreement.

5 – INFRINGEMENT

          5.1 Infringement. In the event that Licensee learns of (i) any infringement of any of
the Patents or (ii) any misappropriation of any of the Know-How, Licensee shall promptly inform
Licensor in writing and Licensor may elect to initiate and prosecute legal proceedings with respect
thereto at Licensor’s cost and expense. In the event that Licensor elects not to pursue such legal
proceedings, Licensee shall have the right to do so at Licensee’s cost and expense.

          5.2 Cooperation. In any infringement suit instituted by Licensor or Licensee pursuant
to this Agreement, Licensor or Licensee as the case may be shall, at the other Party’s request and
expense, cooperate in all reasonable respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information, samples, specimens
and the like.

6 – CONFIDENTIAL INFORMATION

          6.1 Confidential Information. Each Party (“Receiving Party”) shall treat the terms
and conditions of this Agreement and all of the Confidential Information that it receives from the
other Party (“Disclosing Party”) as secret, confidential, and proprietary of the Disclosing Party
and shall not disclose or use such Confidential Information of the Disclosing Party without the
prior written consent of the Disclosing Party for any purpose except as expressly permitted under
this Agreement. The Receiving Party shall develop and implement such procedures as may be required
to prevent the intentional or negligent disclosure to third parties of such Confidential
Information of the Disclosing Party, including, but not limited to, requiring each of its employees
having access to Confidential Information of the Disclosing Party to enter into a proprietary
information agreement consistent with, and no less protective of the Disclosing Party’s rights in
the Confidential Information than, the terms set forth in this Section 6 and in this Agreement.
Notwithstanding the foregoing, each Party shall have the right to disclose Confidential Information
as required by law (using reasonable best efforts to redact, where permitted by law), and to its
auditors, accountants, potential investors and potential acquirers under appropriate non-disclosure
agreements.

          6.2 Exclusions. Notwithstanding the foregoing, nothing in this Agreement shall
prevent the disclosure or use by the Receiving Party of the Disclosing Party’s Confidential
Information that:

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

5

 

(a) prior to the transmittal thereof to the Receiving Party was of general public knowledge;

(b) becomes, subsequent to the time of transmittal to the Receiving Party, a matter of general
public knowledge otherwise than as a consequence of a breach by the Receiving Party of any
obligation under this Agreement;

(c) is made public by the Disclosing Party;

(d) was in the possession of the Receiving Party in documentary form prior to the time of
disclosure thereof to the Receiving Party by the Disclosing Party, and is held by the Receiving
Party free of any obligation of confidence to the Disclosing Party or any third party; or

(e) is received in good faith from a third party having the right to disclose it, who did not
obtain such Confidential Information from the Disclosing Party and who imposes no obligation of
secrecy on the Receiving Party with respect to such Confidential Information.

7 – REPRESENTATIONS AND WARRANTIES

          7.1 Representations and Warranties of Licensor. Licensor represents and warrants
that: (i) there are no actions or claims pending, nor to the best of its knowledge, threatened,
against Licensor alleging infringement of any patent, copyright, trademark or other intellectual
property right relative to the Peptides; (ii) the grant of rights and licenses by Licensor to
Licensee under this Agreement is not inconsistent with the terms and conditions of any obligations
of Licensor; (iii) no authorization or consent is required for Licensor to grant the rights and
licenses under this Agreement or for Licensor to enter into this Agreement; and (iv) Licensor is
duly organized and in good standing in its state of incorporation.

          7.2 Representations and Warranties of Licensee. Licensee represents and warrants
that: (i) the grant of rights and licenses by Licensee to Licensor under this Agreement is not
inconsistent with the terms and conditions of any obligations of Licensee; (ii) no authorization or
consent is required for Licensee to grant the rights and licenses under this Agreement or for
Licensee to enter into this Agreement; and (iii) Licensee is duly organized and in good standing in
its state of incorporation.

8 – DISCLAIMER OF WARRANTIES / LIMITATIONS OF LIABILITY

          8.1 Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
AGREEMENT, NEITHER PARTY OR ITS DIRECTORS, OFFICERS, STOCKHOLDERS, EMPLOYEES, AGENTS OR AFFILIATES
MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
VALIDITY OF PATENTS, ISSUED OR PENDING, NON-INFRINGEMENT OR THE ABSENCE OF LATENT OR OTHER DEFECTS,
WHETHER OR NOT DISCOVERABLE. NOTHING IN

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

6

 

THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY LICENSOR THAT
THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE INTELLECTUAL
PROPERTY OF ANY THIRD PARTY.

          8.2 Limitation of Remedies. EXCEPT FOR EITHER PARTY’S OBLIGATIONS UNDER SECTION 9
(INDEMNIFICATION) OR A BREACH OF A PARTY’S OBLIGATIONS UNDER SECTION 6 (CONFIDENTIAL INFORMATION)
IN NO EVENT SHALL EITHER PARTY OR ITS DIRECTORS, OFFICERS, STOCKHOLDERS, EMPLOYEES, AGENTS OR
AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE
OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS OF WHETHER SUCH PARTY SHALL BE ADVISED, SHALL
HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF THE FOREGOING.

          8.3 Limitation of Liability. EXCEPT FOR EITHER PARTY’S OBLIGATIONS UNDER SECTION 9
(INDEMNIFICATION) OR A BREACH OF A PARTY’S OBLIGATIONS UNDER SECTION 6 (CONFIDENTIAL INFORMATION),
THE MAXIMUM TOTAL LIABILITY OF ONE PARTY TO THE OTHER FOR ANY AND ALL CLAIMS RELATING TO OR ARISING
UNDER THIS AGREEMENT WILL BE LIMITED TO THE TOTAL AMOUNTS PAID UNDER THIS AGREEMENT.

EACH PARTY ACKNOWLEDGES THAT THE OTHER PARTY RELIED UPON THE INCLUSION OF THE LIMITATIONS OF
REMEDIES AND LIABILITY SET FORTH IN THIS SECTION 8 IN CONSIDERATION OF ENTERING INTO THIS
AGREEMENT.

9 – INDEMNIFICATION

          9.1 By Licensee. Licensee shall at all times during the term of this Agreement and
thereafter indemnify defend and hold Licensor and its directors, officers, stockholders, employees,
agents and affiliates (collectively, “Licensor Indemnitees”) harmless against any and all
liabilities, losses, fines, penalties, damages, expenses of any kind whatsoever, including legal
expenses and reasonable attorneys’ fees (collectively, “Losses”) that arise out of any claim,
action, demand, suit, or proceeding brought against a Licensor Indemnitee by any third party after
the Effective Date, to the extent attributable to or resulting from Licensee’s production,
manufacture, testing, marketing, sale, distribution, use, consumption, advertisement or promotion
of Licensee’s products or services (including, without limitation, any products that contain,
incorporate or are based on Peptides). Licensee’s indemnification obligations under this Section
9.1 shall not apply to any Losses to the extent that they are directly attributable to the grossly
negligent activities or intentional misconduct of any of the Licensor Indemnitees.

          9.2 By Licensor. Licensor shall at all times during the term of this Agreement and
thereafter indemnify defend and hold Licensee and its directors, officers, stockholders, employees,
agents and affiliates (collectively, “Licensee Indemnitees”) harmless against any and all Losses
that arise out of any claim, action, suit, or proceeding brought against a Licensee Indemnitee by
any third party after the Effective Date, to the extent attributable to or resulting

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

7

 

from personal injury or death caused by a Peptide considered in isolation (and not
attributable to or resulting from the combination of any Peptide(s) with any other substance or
material or any act or omission of Licensee or a Sublicensee). Licensor’s indemnification
obligations under this Section 9.2 shall not apply to any Losses to the extent that they are
directly attributable to the grossly negligent activities or intentional misconduct of any of the
Licensee Indemnitees.

          9.3 Certain Procedures Regarding Indemnification. All claims for indemnification
under this Agreement shall be made as follows:

(a) In the event a third-party claim, action, suit, or proceeding is made against a party entitled
to indemnification under this Section 9 (the “Indemnitee”) for which the Indemnitee would be
entitled to indemnification hereunder (a “Claim”), the Indemnitee shall notify the Indemnitor of
such Claim, specifying the nature and the amount of the Claim (the “Claim Notice”). The Claim
Notice must be delivered promptly after the Indemnitee becomes aware of the Claim, provided that
the failure of the Indemnitee to comply with such requirement shall not relieve the party required
to indemnify a person under Section 9 (the “Indemnitor”) of its obligations hereunder unless the
Indemnitor is materially prejudiced in the defense of the Claim due to such failure on the part of
the Indemnitee. The Indemnitor shall have the right to undertake and control the defense of any
Claim at its expense through counsel of its own choosing (subject to the Indemnitee’s consent to
such counsel, which consent may not be unreasonably withheld or delayed). If the Indemnitor
undertakes the defense of a Claim: (i) the Indemnitor shall not permit to exist any lien,
encumbrance or other adverse charge upon any asset of the Indemnitee; (ii) the Indemnitor may not
settle such action without first obtaining the written consent of the Indemnitee, which consent
will not be unreasonably withheld or delayed, except for settlements solely covering monetary
matters for which the Indemnitor acknowledges responsibility for payment; and (iii) the Indemnitor
shall permit the Indemnitee (at the Indemnitee’s sole cost and expense) to participate in such
settlement or defense through counsel chosen by the Indemnitee.

(b) The Indemnitee agrees to preserve and provide access to all evidence in its possession or
control that may be useful in defending against a Claim and to provide reasonable cooperation in
the defense thereof or in the prosecution of any action against a third party in connection
therewith at the Indemnitor’s expense. The Indemnitor’s defense of any Claim or demand shall not
constitute an admission or concession of liability therefor or otherwise operate in derogation of
any rights the Indemnitor may have against the Indemnitee or any third party. So long as the
Indemnitor is reasonably contesting any such Claim in good faith, the Indemnitee shall not pay or
settle any such Claim.

(c) If the Indemnitor elects not to undertake the defense of the Claim, the Indemnitee shall have
the right to assume the defense of the Claim through counsel of its own choosing and contest,
settle or compromise the Claim in the exercise of its exclusive discretion at the expense of the
Indemnitor. All reasonable expenses incurred by the Indemnitee pursuant to this Section 9.3(c)
shall be reimbursed by the Indemnitor within twenty (20) days of receipt of competent written
evidence of such expenses.

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

8

 

10 – INSURANCE

          10.1 General Liability. During the term of this Agreement, each Party shall maintain
commercial general liability insurance in amounts not less than [***] dollars ($[***]) per
occurrence and [***] dollars ($[***]) annual aggregate from an underwriter who has an A.M. Best
rating of A-VII or better, and naming the other Party as an additional insured. Such commercial
general liability insurance shall include but not be limited to contractual and product liability
coverage for each Party’s indemnification obligations under Section 9 of this Agreement. The
general liability insurance shall include worldwide coverage, including defense of claims and
incidents outside of the United States and its territories. The liability policies required under
this Section 10 shall be written as primary and non-contributing to not in excess of any coverage
the other Party may choose to maintain. The minimum amounts of insurance coverage required under
this Section 10 shall not be construed to create a limit of each Party’s liability with respect to
its indemnification obligations under Section 9 of this Agreement.

          10.2 Notification. Each Party shall provide the other Party with written evidence of
such insurance at any time during the term of this Agreement promptly upon the request of the other
Party. Each Party shall provide the other Party with written notice at least fifteen (15) days
prior to the cancellation, non-renewal or material change in such insurance. If a Party does not
obtain replacement insurance providing comparable coverage prior to the expiration of such fifteen
(15) day period, the other Party shall have the right to terminate this Agreement effective at the
end of such fifteen (15) day period without notice or any additional waiting periods.

          10.3 Term of Insurance. Each Party shall maintain such commercial general liability
insurance beyond the expiration or termination of this Agreement during the period that any
products containing, incorporating or based on any Peptide are commercially marketed, distributed
or sold by Licensee or any Sublicensee.

11 – EXPORT CONTROLS

     Licensee shall comply with and shall, at Seller’s request, demonstrate such compliance with,
the U.S. Foreign Corrupt Practices Act and all applicable export laws, restrictions, and
regulations of any U.S. or foreign agency or authority, and shall obtain, and bear all expenses
relating to, any necessary licenses and/or exemptions with respect to the export from the U.S. by
Licensee or its agents of any Peptide (or any product or material containing, incorporating or
based on any Peptide) or any technology or information it obtains or learns pursuant to this
Agreement (or any direct product thereof).

12 – MARKS

          12.1 Non-Use of Marks. Licensee shall not use the names, logos, trademarks or service
marks of Licensor nor any adaptation thereof in any advertising, promotional or sales literature
without Licensor’s prior written consent, except that Licensee may state that it is

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

9

 

licensed by Licensor hereunder and may identify the inventors of Licensor’s patents and/or
patent applications.

13 – TERMINATION

          13.1 Term. The term of the Agreement shall begin on the Effective Date and shall
continue for three (3) years, unless terminated at an earlier date pursuant to the terms and
conditions set forth below in this Section 13. This Agreement shall automatically renew for
successive one (1) year terms provided the Minimum Royalty Payment requirements set forth in
Exhibit C are achieved in the prior year and unless either Party provides written notice to
the other Party at least sixty (60) days prior to the end of the applicable term.

          13.2 Termination for Breach. Upon any material breach of any provision of this
Agreement by a Party (the “Breaching Party”), the other Party (the “Non-Breaching Party”) shall
have a right to give written notice thereof (“Notice of Default”) to the Breaching Party. If the
Breaching Party does not cure such material breach within thirty (30) days after the date of the
Notice of Default, the Non-Breaching Party shall have the right to terminate this Agreement by a
second written notice (“Notice of Termination”) to the Breaching Party. If the Non-Breaching Party
sends a Notice of Termination to the Breaching Party, this Agreement will automatically terminate
on the date of such Notice of Termination. Termination of the Agreement by Licensor under this
Section 13.2 shall not relieve Licensee of its obligation to pay any Royalties or other fees owing
at the time of termination, if any, and shall not impair any accrued right of Licensor hereunder.

          13.3 Termination for Bankruptcy. To the extent permitted by applicable law, each
Party shall have the right to immediately terminate this Agreement by giving written notice to the
other Party, in the event the other Party: (i) provides notice of its intent to file (or does
actually file without providing said notice) a petition in bankruptcy; (ii) attempts to make an
assignment hereof for the benefit of creditors or otherwise; (iii) discontinues or dissolves its
business; or (iv) if a receiver is appointed for it.

          13.4 Effect of Termination. Upon termination or expiration of this Agreement for any
reason: (i) the rights granted to Licensee hereunder shall immediately terminate; and (ii) nothing
herein shall be construed to release any party from any obligation that matured prior to the
effective date of such termination.

          13.5 Survival. Sections 2.3, 3, 4.2, 4.5, 6, 8, 9, 15 and 17 of this Agreement shall
survive the termination or expiration of this Agreement.

14 – NOTICES AND OTHER COMMUNICATIONS

          Any notice or other communication pursuant to this Agreement shall be sufficiently made or
given if sent to such Party by certified first class mail, return receipt requested, postage

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

10

 

prepaid, by reputable overnight courier, or by facsimile (with confirmation emission)
addressed to it at its address below or as it shall designate by written notice given to the other
Party:

In the case of Licensor:

Helix BioMedix, Inc.

22122 — 20th Avenue SE

Bothell, WA 98021

Fax: (425) 806-2999

Attn: President

In the case of Licensee:

Grant Industries

103 Main Avenue

Elmwood Park, NJ 07407

Fax:

Attn: President

          All notices sent by first class mail shall be deemed to have been given four (4) business days
after deposit, all notices sent by overnight courier or facsimile shall be deemed to have been
given one (1) business day after deposit or transmission, as applicable.

15 – DISPUTE RESOLUTION

          Any controversy or claim arising out of or relating to this Agreement, or the breach thereof,
shall be settled by arbitration conducted in New York, New York and administered by the American
Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment on the
award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Notwithstanding the foregoing, either Party may, without waiving any remedy under this Agreement,
seek from any court having jurisdiction thereof any interim or provisional relief that is necessary
to protect the rights or property of that Party from immediate and irreparable injury, loss, or
damage.

16 – PRESS RELEASES

          Neither Party shall issue any press release or other similar public communication relating to
this Agreement unless approved in advance and in writing by the other Party, which approval shall
not be unreasonably withheld or delayed, except for those communications required by Applicable
Law.

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

11

 

17 – MISCELLANEOUS PROVISIONS

          18.1 Force Majeure. Neither Party shall be held liable or responsible to the other
Party or be deemed to have defaulted under or breached this Agreement for failure to delay in
fulfilling or performing any term of this Agreement when such failure of delay is caused by or
results from events beyond the reasonable control of the non-performing Party, including fires,
floods, embargoes, shortages, epidemics, quarantines, war, acts of terrorism, acts of war (whether
war be declared or not), insurrections, riots, civil commotion, strikes, lockouts or other labor
disturbances, acts of God or acts, omissions or delays in acting by any governmental authority.
The non-performing Party shall notify the other Party of such force majeure within ten (10) days
after such occurrence by giving written notice to the other Party stating the nature of the event,
its anticipated duration, and any action being taken to avoid or minimize its effect. The
suspension of performance shall be of no greater scope and no longer duration than is necessary.

          18.2 Assignment. Without the prior written consent of the other Party, neither Party
shall sell, transfer, assign, delegate, pledge or otherwise dispose of, whether voluntarily,
involuntarily, by operation of law or otherwise, this Agreement or any of its rights or duties
hereunder; provided, however, that Licensor may assign or transfer this Agreement or any of its
rights or obligations hereunder without the consent of the Licensee to any third party with which
it may merge or consolidate, or to which it may transfer all or substantially all of its assets.
Any purported assignment or transfer in violation of this Section 18.2 shall be void ab initio and
of no force or effect.

          18.3 Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under any present or future law, and if the rights or obligations of either Party
under this Agreement will not be materially and adversely affected thereby, (a) such provision
shall be fully severable, (b) this Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provisions or by its severance herefrom, and (d) in lieu of such illegal,
invalid or unenforceable provision there shall be added automatically as a part of this Agreement a
legal, valid and enforceable provisions as similar in terms to such illegal, invalid, or
unenforceable provision as may be possible and reasonably acceptable to the Parties herein. To the
fullest extent permitted by applicable law, each Party hereby waives any provision of law that
would render any provision prohibited or unenforceable in any respect.

          18.4 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without giving effect to the conflicts of law provisions
thereof.

          18.5 Entire Agreement. This Agreement sets forth and constitutes the entire agreement
and understanding between the Parties with respect to the subject matter hereof and all prior
agreements, understating, promises and representations, whether written or oral, with respect
thereto are superseded hereby. Each Party confirms that it is not relying on any representations
or warranties of the other Party except as specifically set forth herein. No amendment,
modification, release or discharge shall be binding upon the Parties unless in writing and duly
executed by authorized representatives of both Parties.

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

12

 

          18.6 No Waiver. Any term or condition of this Agreement may be waived at any time by
the Party that is entitled to the benefit hereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed by or on behalf of the Party waiving such term or
condition. The waiver by either Party hereto of any right hereunder or of the failure to perform
or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of
any other breach or failure by said other Party whether of a similar nature or otherwise.

          18.7 Attorneys Fees; Equitable Remedies. If either Party brings an action to enforce
any rights arising out of or relating to this Agreement, the prevailing Party in such action shall
be entitled to recover from the losing Party its reasonable fees, costs and expenses in connection
with such action, including reasonable attorneys’ fees. The Parties acknowledge and agree that any
breach of this Agreement will cause irreparable harm to the non-breaching party, which shall
entitle the non-breaching Party to injunctive relief in addition to all other available legal
remedies.

          18.8 No Benefit to Third Parties. The representations, warranties, covenants and
agreement set forth in this Agreement are for the sole benefit of the Parties hereto and their
successors and permitted assigns, and they shall not be construed as conferring any rights on any
other parties.

          18.9 Further Assurances. Each Party shall duly execute and deliver, or cause to be
duly executed and delivered, such further instruments and do and cause to be done such further acts
and things, including the filing of such assignments, agreements, documents and instruments, as may
be necessary or as the other Party may reasonably request in connection with this Agreement or to
carry out more effectively the provisions and purposes, or to better assure and confirm unto such
other Party its rights and remedies under this Agreement.

          18.10 Construction. Except where the context otherwise requires, wherever used, the
singular shall include the plural, the plural the singular, the use of any gender shall be
applicable to all genders and the word “or” is used in the inclusive sense (and/or). The captions
of this Agreement are for convenience of reference only and in no way define, describe, extend or
limit the scope or intent of this Agreement or the intent of any provision contained in this
Agreement. The term “including” as used here mean including, without limiting the generality of
any description preceding such term. The language of this Agreement shall be deemed to be the
language mutually chosen by the Parties and no rule of strict construction shall be applied against
either Party hereto.

[Signature page follows]

[***] Certain information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

13

 

          IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives as of the date set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	HELIX BIOMEDIX, INC.	 	 	 	GRANT INDUSTRIES	 	 
	(“Licensor”)	 	 	 	(“Licensee”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ R. Stephen Beatty
	 	 	 	By:
	 	/s/ David Granatell	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	R. Stephen Beatty
	 	 	 	Name:
	 	David Granatell	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 President
	 	 	 	Title:
	 	Executive Director	 	 

[SIGNATURE PAGE TO NON-EXCLUSIVE LICENSE AGREEMENT]

 

 

EXHIBIT A

Patents, Peptides, and Minimum Recommended Concentrations

Patents:

[***]

Peptides:

[***]

Minimum Recommended Concentrations (for final, marketable formulations after dilution of

Premix):

[***]

Maximum percentage of Peptide in Premix product: [***]%.

[***] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

EXHIBIT B

Territory

[***]

[***] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

EXHIBIT C

Royalty Rates and Minimums

Royalties

Licensee shall pay to Licensor Royalties in the amount of [***] percent ([***]%) of all Net
Revenue, in accordance with the terms set forth in the Agreement.

Minimum Royalty Payments:

Licensor
shall have the right to terminate this Agreement and/or remove a Peptide from Exhibit A (at Licensor’s option) if Licensee fails to make the following minimum royalty
payments for the applicable calendar year during the term of this Agreement:

[***]

Should Licensor exercise its right to terminate this Agreement or remove a Peptide from
Exhibit A due to Licensee’s failure to meet minimum royalty payments, Licensee may, during
the one-year period following notice from Licensor to Licensee of such termination or removal,
continue to sell Premix (or Premix containing such removed Peptide, as the case may be) solely to
Sublicensees existing as of the date of such notice, subject to the other terms of this Agreement.

[***] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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