Document:

Exhibit 10.16 

 

LEASE AMENDMENT AND EXPANSION AGREEMENT

 

LEASE AMENDMENT AND
EXPANSION AGREEMENT (this “Amendment”) made as of the ___ day of February, 2014, by and between 509 MADISON
AVENUE ASSOCIATES, LP, a New York limited partnership, having an address c/o Kensico Management, Inc., 509 Madison Avenue,
New York, New York 10022 (“Landlord”), and TONIX PHARMACEUTICALS, INC., a Delaware corporation, having an address
at 509 Madison Avenue, Suite 306, New York, New York 10022 (“Tenant”).

 

WITNESSETH:

 

WHEREAS, pursuant
to that certain Standard Form of Office Lease and Rider thereto, both dated as of September 28, 2010 (collectively, the “Original
Lease”, and together with this Amendment, collectively, the “Lease”), between Landlord and Tenant, Landlord did
demise and let to Tenant, and Tenant did hire and take from Landlord, certain premises (the “Original Premises”) on
the third (3rd) floor (also known as Suite 306) of the building located at and commonly known as 509 Madison Avenue,
New York, New York (the “Building”), as more particularly identified in the Original Lease; and

 

WHEREAS, Tenant
desires to lease from Landlord, and Landlord desires to lease to Tenant, certain additional premises on the third (3rd)
floor of the of the Building (also known as Suite 310), as more particularly shown on the floor plan attached hereto as Exhibit
A (the “Expansion Premises”), upon all of the terms and conditions of the Original Lease, except as amended hereby;
and

 

WHEREAS, Landlord
and Tenant desire to extend the term of the Original Lease and to otherwise modify and amend the terms and conditions of the Original
Lease in connection therewith as set forth below.

 

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

 

1.           Defined Terms.
All capitalized terms used herein shall have the meaning ascribed to them in the Original Lease, unless specifically set forth
herein to the contrary.

 

2.           Extension of
Term. The term of the Lease is hereby extended for a five (5) year period (the “Extension Term”) commencing
on May 1, 2014 (the “Extension Term Commencement Date”) and expiring on April 30, 2019 (the “Expiration Date”),
or on such earlier date upon which said term may expire or be terminated pursuant to any other conditions in the Lease as hereby
amended or pursuant to law, upon all of the terms, covenants and conditions contained in the Original Lease, except as otherwise
expressly set forth in this Amendment.

 

    	 

    	 

    

 

3.           Lease of Expansion
Premises. Effective as of the Extension Term Commencement Date, (i) Landlord hereby leases to Tenant and Tenant hereby
hires from Landlord, upon and subject to the terms, covenants, provisions and conditions of the Original Lease and this Amendment,
the Expansion Premises, and (ii) all references in the Lease to the “Demised Premises” shall be deemed to mean the
Original Premises and the Expansion Premises, collectively, and all of Tenant’s rights and obligations with respect to the
Original Premises shall apply to the Expansion Premises, except as expressly modified herein.

 

4.           Extension Term Base Rent and Additional
Rent. Effective as of the Extension Term Commencement Date, the Lease shall be amended as follows:

 

(A)          The annual Base Rent (as defined in Article
37 of the Original Lease) for the Demised Premises, payable in equal monthly installments, shall be as follows:

 

		(i)	$264,833.48 for the period commencing on the Extension Term Commencement Date and ending on April 30, 2015;

 

		(ii)	$272,348.64 for the period commencing on May 1, 2015 and ending on April 30, 2016;

 

		(iii)	$280,089.26 for the period commencing on May 1, 2016 and ending on April 30, 2017; and

 

		(iv)	$288,062.10 for the period commencing on May 1, 2017 and ending on April 30, 2018; and

 

		(v)	$296,274.12 for the period commencing on May 1, 2018 and ending on the Expiration Date.

 

(B)         The term “Tenant’s Percentage”
as defined in Article 43(A)(4) of the Original Lease shall mean 3.56%.

 

(C)         The amount for electrical services as set
forth in Article 46(2) and (5) of the Original Lease shall be “FOURTEEN THOUSAND THREE HUNDRED TWENTY-EIGHT AND 00/100 ($14,328.00)
DOLLARS”; and

 

(D)         The rentable square footage of the demised
premises for purposes of Article 46(5)(C)(6) of the Original Lease shall be 4,776.

 

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5.           Condition of
Expansion Premises; Landlord’s Work. Tenant acknowledges that it has inspected the Expansion Premises and agrees
to accept possession thereof in its then "as-is" and broom clean condition on the Extension Term Commencement Date, it
being understood and agreed that Landlord shall not be obligated to make any improvements, alterations or repairs to the Expansion
Premises, except that Landlord, at its sole cost and expense, agrees to perform, prior to the Extension Term Commencement Date,
the work in the Expansion Premises in accordance with the plans attached hereto as Exhibit B (“Landlord’s Work”),
all of which shall be of material, manufacture, design, capacity and finish selected by Landlord as standard of the Building. Further,
Landlord agrees to commence Landlord’s Work promptly subsequent to the mutual execution and delivery of this Amendment and
to perform Landlord’s Work in a good and workmanlike manner in accordance with all applicable laws, rules and regulations.

 

6.           Continued Lease
of Original Premises. Tenant hereby acknowledges and agrees that, at all times until the Extension Term Commencement Date,
Tenant shall continue to lease the Original Premises upon all of the terms and conditions of the Original Lease.

 

7.           Condition
of Original Premises.  Tenant hereby represents that it is currently in possession of the Original Premises
and that it is fully familiar with the physical condition and state of repair thereof, and Tenant does hereby agree to continue
to accept the same in its existing condition and state of repair, subject to any and all defects therein, “as is” as
of the date hereof, and that Landlord shall have no obligation to perform any work or make any installation, repair or alteration
of any kind to or in respect thereof in connection with Tenant’s continued occupancy of the Original Premises.

 

8.           Security.

 

(A)          As of the Extension
Term Commencement Date, Article 34 of the Original Lease shall be amended to provide that the Security Deposit shall be increased
to $132,416.74.  Prior to the Extension Term Commencement Date, Tenant shall deliver to Landlord a replacement Letter of Credit
in the increased Security Deposit amount of $132,416.74 or an amendment to the original Letter of Credit previously deposited by
Tenant in the amount of $72,354.24, which conforms to the requirements set forth in Article 69 of the Original Lease.  Upon
Landlord’s receipt of a replacement Letter of Credit, Landlord shall promptly return to Tenant the original Letter of Credit
previously deposited by Tenant.

 

(B)          Notwithstanding anything
to the contrary contained in the Lease, provided the Lease is in full force and effect and Tenant is not then in default under
the Lease beyond the expiration of any applicable notice and cure periods, Tenant shall have the right to reduce the amount of
the Security Deposit to the sum of $88,277.83 (“Reduced Security Amount”) as of the second (2nd) anniversary of the
Extension Term Commencement Date (the “Security Reduction Date”).  If Tenant is entitled to such reduction on
the Security Reduction Date in accordance with this Section 8, then Landlord shall either accept an amendment to the original Letter
of Credit to reflect the Reduced Security Amount or simultaneously return the original Letter of Credit to Tenant upon receipt
of a replacement Letter of Credit in the Reduced Security Amount, which conforms to the requirements set forth in Article 69 of
the Original Lease.  Any fees or charges imposed by the Issuing Bank in connection with a reduction in the Letter of Credit
in accordance with this Section 8 shall be payable solely by Tenant.

 

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9.           Guaranty.
As of the Extension Term Commencement Date, provided that Tenant is not then in default under the Lease beyond the expiration of
any applicable notice and cure periods, that certain Good Guy Guaranty, dated as of September 28, 2010 (the “Guaranty”),
executed by Seth Lederman in favor of Landlord, shall terminate and be of no further force or effect.

 

10.          Broker.
Landlord and Tenant each represents and warrants to the other that it has not dealt with any broker, finder or like agent in connection
with this Amendment. Landlord and Tenant each does hereby agree to indemnify and hold the other harmless of and from any and all
loss, costs, damage or expense (including, without limitation, attorneys’ fees and disbursements) incurred by the other by
reason of any claim of or liability to any broker, finder or like agent, who shall claim to have dealt with such party in connection
with this Amendment.  Landlord acknowledges and agrees that Landlord shall be obligated to pay any commission due and payable
to NAI Global of New York City, Inc. (“NAI”) in connection with this Amendment if Landlord previously obligated itself
to do so in any brokerage agreement with NAI executed in connection with the Lease. This Section 10 shall survive the expiration
or earlier termination of the Lease.

 

11.          Representations
and Warranties. Tenant represents and warrants to Landlord that, as of the date hereof, (i) the Lease is in full force
and effect and has not been modified except pursuant to this Amendment; (ii) to the best of Tenant’s knowledge, there are
no defaults existing under the Lease; (iii) to the best of Tenant’s knowledge, there exist no valid abatements, causes of
action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms
and conditions of the Lease; (iv) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the
legal, valid and binding obligation of Tenant; and (v) to the best of Tenant’s knowledge, Landlord is not in default of any
of its obligations or covenants under the Lease.

 

12.          Miscellaneous.

 

(A)          Except as set forth
herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Original Lease.
The terms, covenants and conditions of the Original Lease are hereby ratified and confirmed and shall continue to be and remain
in full force and effect throughout the remainder of the term hereof, as modified hereby. If there is any inconsistency between
the terms of this Amendment and the terms of the Original Lease, the terms of this Amendment shall be controlling and prevail.

 

(B)          This Amendment contains
the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations,
agreements and understandings heretofore had among the parties with respect thereto are merged herein. This Amendment may not be
modified, amended or terminated nor may any of its provisions be waived except by an agreement in writing signed by the party against
whom enforcement of any modification, amendment, termination or waiver is sought.

 

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(C)          This Amendment shall
not be binding upon Landlord or Tenant unless and until Landlord shall have delivered a fully executed counterpart of this Amendment
to Tenant.

 

(D)          This Amendment shall
be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

 

(E)          This Amendment shall
be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

 

(F)          This Amendment may
be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute
one and the same instrument.

 

[Signatures on following page]

 

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IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be executed as of the day and year first above written.

 

	 	LANDLORD:
	 	 
	 	509 MADISON AVENUE ASSOCIATES, L.P.
	 	By:	Kensico Management, Inc.
	 	 	General Partner
	 	 	 
	 	By:	 
	 	 	Alan Zimmerman, Secretary
	 	 	 
	 	TENANT:
	 	 
	 	TONIX PHARMACEUTICALS, INC.
	 	 	 
	 	By:	 
	 	 	Name: Seth Lederman
	 	 	Title: Chairman

 

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Exhibit A

 

Expansion Premises

 

509 Madison Avenue – 3rd Floor

 

 

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Exhibit B

 

Landlord’s Work

 

(See Attached Plan)

 

		1.	New coat closet at Location "A." To include shelf and pole.

 

		2.	Remove door and side walls to make connection to the Additional Premises at location "B."

 

		3.	Install slab channeled floor box at location ''C." To include data pull and electric.

 

		4.	New door, wall and glass panel at location "D."

 

		5.	Remove current demising wall at location "E" to make connection to the Additional Premises.

 

		6.	New pantry at location "F." To be similar in content and finishes to existing pantry.

 

		7.	Remove wall at location ''G."

 

		8.	Patch carpet and paint at affected areas.

 

		9.	All dimensions and locations are approximate.

 

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    	9EX-10.4

 Exhibit 10.4 

English Language Summary of New Office Lease Agreement 

Reference is made to the lease agreement (the “Original Lease”), by and between Azorei Mallal Industries Ltd. (the
“Landlord”) and CyberArk Software Ltd. (the “Company”), regarding the Company’s office space in Israel. The Landlord intends to build a new real-property project, including four new office buildings situated at
the same location as the Original Lease. On February 26, 2015, the Company signed a new lease agreement with the Landlord (the “New Lease”). 
  

	 	•	 	Subject Matter of the New Lease: Unprotected lease of office space and parking spaces for the purpose of conducting business in the hi-tech field. Premises are located in Petach-Tikva, Israel. 

 

	 	•	 	Term of the New Lease: 

  

	 	¡ 	 	The term of the New Lease is sixty (60) months commencing on July 1, 2017, with the Company’s right for early termination after 36 months. The Company is given two options to extend the term of the lease,
each by twelve (12)-months (subject to a prior notice, 180 days prior to the commencement of each such extended period, that the Company does not wish to exercise the option). 

 

	 	¡ 	 	The term of the lease for all parking spaces leased by the Company from time to time is linked to the lease term of the main premises. 

 

	 	•	 	Premises Covered by the New Lease: 

  

	 	¡ 	 	Property – the Company leases 5 full stories (the upper 5 stories, on floors 7-11) of a new building (the first building out of 4 new buildings that the Landlord intends to build). The Company has an option
to lease 2 additional stories (5th and 6th floor) subject to a prior written notice to be given no later than 1.6.2016 (for both the 5th and 6th floors) or 1.9.2016 (for the 6th floor only). 

  

	 	¡ 	 	Parking – The Company has the right to lease one hundred and fifty (150) parking lots. 

  

	 	•	 	Rental Fees: 

  

	 	¡ 	 	Property – the Company shall pay a monthly rental fee of 73 NIS (approximately US$18) per square meter (gross). For the two option periods, the monthly rental fees shall be increased by 5% compared to the
monthly rental fee to be actually paid by the Company in December 2022. All rental fees are exclusive of VAT and index-linked to the Consumer Price Index published by the Central Bureau of Statistics (the “Index”);
provided that the rental fees shall not be less than the nominal values listed above. 

	 	¡ 	 	Parking – The monthly rental fee for the parking spaces currently leased by the Company is NIS 433 per parking space, in each case plus VAT and Index-linked. 

 

	 	¡ 	 	Management Fees – The management fees shall be paid on a cost plus 15% basis plus VAT. The management fee is Index-linked. 

 

	 	¡ 	 	Payment Terms – The rental fees shall be paid three months in advance by no later than the fifth day of the month during which a payment is made. The Company has agreed to sign a direct debit with respect to
the rental and management fees. In the event the Company is over-charged, that extra amount shall be remitted to the Company within five business days. 

  

	 	•	 	Guarantees: 

  

	 	¡ 	 	An autonomous un-conditional bank guarantee, for and amount representing three (3) months’ rental fee plus VAT, to be extended from time to time by the Company to remain in force for the entire term of lease
and for ninety (90) days thereafter. 

  

	 	•	 	Dispute Resolution: 

  

	 	¡ 	 	Technical disputes raised regarding the New Lease, shall be governed by an agreed-upon professional arbitrator (a civil engineer). Legal disputes raised regarding the New Lease, shall be governed by Israeli Court in Tel
Aviv. 

  

	 	•	 	Other Terms of the New Lease: 

  

	 	¡ 	 	In the event the commencement of the Lease term shall be delayed due to a delay in issuing a building permit and/or the construction, the Company shall have the right to extend the original Lease Agreement that is
currently in effect. After the initial 90 days of delay, the company shall be entitled for compensation of the monthly rental fee of the New Lease. 

  

	 	¡ 	 	The Landlord undertakes to conduct all the construction and interior work in the New Lease, according to plans and specifications attached to the New Lease. Except as to carpentry, furniture, communication and computer
network. 

  

	 	¡ 	 	The Company has a right to sub-lease the premises (or any portion thereof) and to sub-let to a substitute lessee, subject to the Landlord’s prior written consent (not to be unreasonably withheld). The Company may
also transfer its rights to the premises to an affiliate, subject to the Landlord’s prior written consent (not to be unreasonably withheld). 

  

	 	¡ 	 	As in the current lease agreements, the Company agrees to assume responsibility for all fees, municipal or local taxes, utility payments, etc.; provided that the Landlord shall bear any and all taxes and
fees, which by their nature are levied on property owners. 

	 	¡ 	 	As in the current lease agreements, each party agrees to assume responsibility for any damage, injury or loss (bodily or otherwise) resulting from any act, omission or negligence on its part, and with respect of the
Company—relating to its use of the leased property. 

  

	 	•	 	The Lease Agreement further includes terms concerning the following matters: 

  

	 	¡ 	 	Renovations – Generally, the Company may not perform any major renovations on the premises without prior written authorization from the Landlord. Subject to such advance approval by the Landlord, the Company
may invest certain amounts on renovations for which the Landlord has agreed to reimburse the Company for a certain percentage of the costs. 

  

	 	¡ 	 	Utilities – The Company is responsible for paying for water, power and telephone utility bills, in addition to any taxes or fees, tolls, levies, property taxes and any other payments owed to governmental or
local authorities relating to the property during the term of the New Lease, unless such fees are specifically designated for the property owner. 

  

	 	¡ 	 	No Right of set-off – The parties have agreed that any amounts owed shall not be subject to a set-off right. 

  

	 	¡ 	 	Termination of the lease, vacating of premises and fixtures – Upon the termination or expiration of the New Lease, the Company shall vacate the premises from any person or object which is not owned by the
Landlord and return it to the Landlord in an undamaged, usable state. The Company has sole discretion to remove any fixtures, provided such removal does not damage the premises and provided that the Landlord will have no duty to compensate the
Company for fixtures which it decides to leave.

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