Document:

trip-ex104_676.htm

 

Exhibit 10.4

 

TRIPADVISOR, INC. 

EXECUTIVE SEVERANCE PLAN 

AND SUMMARY PLAN DESCRIPTION

 

Introduction 

TripAdvisor, Inc. hereby establishes the TripAdvisor, Inc. Executive Severance Plan and Summary Plan Description (the “Plan”) for the benefit of certain employees of TripAdvisor, Inc. and its subsidiaries (collectively, the “Company”). The purpose of the Plan is to provide certain designated employees with benefits in the event that the employee’s employment is terminated under circumstances entitling the employee to such benefits, as described herein. The Plan is an unfunded welfare benefit plan for a select group of management or highly compensated employees that is intended to qualify for the exemptions provided in ERISA Sections 201, 301 and 401 and Department of Labor Reg. §2520.104-24. This Plan supersedes all prior policies and practices of the Company with respect to severance or separation pay for participating employees whose employment is terminated on or after the Effective Date (as defined below). 

1.Definitions. 

1.1.“Administrator” refers to TripAdvisor, LLC, which shall be the administrator of the Plan as defined in Section 3(16) of ERISA and shall have responsibility for general administration of the Plan and carrying out its provisions. 

1.2.“Affiliate” means, with respect to any specified Person, another Person that directly or indirectly Controls or is Controlled by or under common Control with the Person specified. 

1.3.“Affiliated Holders” means, with respect to any specified natural Person, (i) such specified natural Person’s parents, spouse, siblings, descendants, step children, step grandchildren, nieces and nephews and their respective spouses, (ii) the estate, legatees and devisees of such specified natural person and each of the Persons referred to in clause (i) of this definition, and (iii) any company, partnership, trust or other entity or investment vehicle Controlled by such specified natural person or any of the Persons referred to in clause (i) or (ii) of this definition or the holding of which is for the primary benefit of such specified natural person or any of the persons referred to in clause (i) or (ii) of this definition.  

1.4.“Base Salary” means the Participant’s annual base salary rate in effect on his or her Termination Date. 

1.5.“Benefits” or “Severance Benefits” means benefits (including payments) provided to Participants pursuant to Section 3 of the Plan (including Medical Benefits) on account of termination from the Company under circumstances set forth in this Plan. 

1.6.“Board” means the Board of Directors of TripAdvisor, Inc. 

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1.7.“Cause” means: (i) “Cause” as defined in any Employment Arrangement to which the applicable Participant is a party; or (ii) if there is no such Employment Arrangement or if it does not define Cause, (A) the willful or gross neglect by a Participant of his or her employment duties; (B) the plea of guilty or nolo contendere to, or conviction for, the commission of a felony offense by Participant; (C) a material breach by Participant of any fiduciary duty owed to the Company; or (D) a material breach by Participant of any nondisclosure, non-solicitation or non-competition obligation owed to the Company; in each case, such determination to be made by the Administrator in its sole discretion.  

1.8.“Change in Control” shall mean the occurrence of any of the following events: 

(i)The acquisition by any Person (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than Liberty TripAdvisor Holdings, Inc. and its Affiliates, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of equity securities of TripAdvisor, Inc. or its successor (“TripAdvisor”) representing more than 50% of the voting power of the then outstanding equity securities of TripAdvisor entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition by TripAdvisor, (B) any acquisition directly from TripAdvisor, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by TripAdvisor or any corporation controlled by TripAdvisor, or (D) any acquisition pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii); or

(ii)Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date, whose election, or nomination for election by TripAdvisor’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(iii)Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of TripAdvisor or the purchase of assets or stock of another entity (a “Business Combination”), in each case, unless immediately following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination will beneficially own, directly or indirectly, more than 50% of the then outstanding combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or equivalent governing body, if 

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applicable) of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns TripAdvisor or all or substantially all of TripAdvisor’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Voting Securities, (B) no Person (excluding Liberty TripAdvisor Holdings, Inc., and its Affiliates, any employee benefit plan (or related trust) of TripAdvisor or such entity resulting from such Business Combination) will beneficially own, directly or indirectly, more than a majority of the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership of TripAdvisor existed prior to the Business Combination and (C) at least a majority of the members of the board of directors (or equivalent governing body, if applicable) of the entity resulting from such Business Combination will have been members of the Incumbent Board at the time of the initial agreement, or action of the Board, providing for such Business Combination; or

(iv)Approval by the stockholders of TripAdvisor of a complete liquidation or dissolution of TripAdvisor.

1.9.“Class” means the classification of a Participant, which determines the amount of Benefits to which the Participant is entitled under the Plan, as follows: 

(a)“Class 1” consists solely of the Chief Executive Officer of TripAdvisor, Inc.  

(b)“Class 2” consists of (i) Senior Vice Presidents of the Company based on the internal job profile designations in the Company’s HRIS system; and (ii) other employees of the Company whom the Administrator has designated as Class 2.

(c)“Class 3” consists of (i) Vice Presidents of the Company based on the internal job profile designations in the Company’s HRIS system; and (ii) other employees of the Company whom the Administrator has designated as Class 3.

1.10.“Committee” means the Compensation Committee of the Board or such other committee of the Board as the Board may from time to time designate. 

1.11.“Control” or “Controlled by” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies, or the dismissal or appointment of the management, of TripAdvisor, Inc., whether through the ability to exercise voting power, by contract or otherwise.  

1.12.“Effective Date” means August 7, 2017. 

1.13“Employment Arrangement” means any employment agreement or offer letter between the Participant and the Company.

1.14.“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

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1.15.“Good Reason” means, without the Participant’s prior written consent: (i) a material reduction in the Participant’s annual base salary from the annual base salary then in effect for such Participant, (ii) a relocation of the Participant’s principal place of business more than 35 miles from the location of the principal place of business from which Participant works, or (iii) a material and demonstrable adverse change in the nature and scope of the Participant’s duties. In order to invoke a termination of employment for Good Reason, the Participant must provide written notice to the Company of the existence of one or more of the conditions described in clauses (i) through (iii) within 90 days following the Participant’s knowledge of the initial existence of such condition or conditions, and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition. In the event that the Company fails to remedy the condition constituting Good Reason during the Cure Period, the Participant must terminate employment, if at all, within 90 days following the Cure Period in order for such termination of employment to constitute a termination of employment for Good Reason. 

1.16.“Medical Benefits” refers to the amount equal to the premiums required to continue the Participant’s and the Participant’s dependents’ participation in any medical plan (including dental or vision but not including any flexible spending account) in which the Participant was participating at the Termination Date.  

1.17.“Participant” refers to any employee of the Company or any Subsidiary or Affiliate thereof who is eligible for Benefits under this Plan pursuant to Section 2 below.  

1.18.“Permitted Holders” means any one or more of (i) Liberty TripAdvisor Holdings, Inc. (“Liberty”), (ii) a successor of Liberty, (iii) John C. Malone or Gregory Maffei, (iv) each of the Affiliated Holders of the Persons referred to in clause (iii) of this definition, and (v) any Affiliates of one or more of the Persons referred to in clauses (i), (ii), (iii), or (iv) of this definition.

1.19.“Person” means any natural person, company, corporation, limited liability company, trust, joint venture, association, partnership, governmental authority or other entity.

1.20.“Resulting Voting Power” shall mean the outstanding combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or equivalent governing body, if applicable) of the entity resulting from a Business Combination (including, without limitation, an entity which as a result of such transaction owns TripAdvisor, Inc. or all or substantially all of the assets of TripAdvisor, Inc. either directly or through one or more Subsidiaries). 

1.21.“Section 409A” means Section 409A of the Internal Revenue Code, and all Treasury regulations or other authoritative administrative guidance promulgated by the Internal Revenue Service pursuant to such section. 

1.22.“Separation and General Release Agreement” means a legally binding document, in a form as may be generally used by the Company from time to time, that includes, without limitation, (i) a general release of claims and non-disparagement covenant in favor of the Company and related persons and entities and (ii) reaffirmation of the Participant’s obligations 

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under the Participant’s nondisclosure, developments and noncompetition agreement with the Company. Whether or not a Participant chooses to sign the Separation and General Release Agreement shall be at his or her discretion. 

1.23.“Subsidiary” or “Subsidiaries” means any corporation, partnership, joint venture, limited liability company or other entity during any period in which at least 50% voting or profits interest is owned, directly or indirectly, by TripAdvisor, Inc. or any successor to TripAdvisor, Inc. 

1.24.“Target Bonus” means the Participant’s annual target bonus as established by the Company in connection with the Company’s short-term incentive program and in effect on the Termination Date. 

1.25.“Termination Date” means the final day of employment with the Company. 

2.Eligibility for Benefits. 

2.1.General Eligibility. The Company has determined that certain employees of the Company shall be eligible to participate in the Plan. The Company shall advise each Participant of his or her participation in the Plan. Except as otherwise provided in the Plan, a Participant is entitled to Benefits under the Plan in the event of a termination by the Company without Cause or by the Participant for Good Reason in connection with a Change in Control; provided the Participant has executed a non-competition, non-solicitation, confidential information and proprietary rights agreement in a form acceptable to the Company as determined by the Administrator, and the Participant signs and does not later revoke a Separation and General Release Agreement.  

2.2.Exclusions. A Participant is not eligible for Benefits if: 

(a)Participant voluntarily resigns (other than for Good Reason in connection with a Change in Control), including a resignation that occurs after the Participant has been advised by the Company that he or she will be terminated but before the effective date of such termination; 

(b)Participant has ceased to be a Participant as defined by the Plan; 

(c)Employment of the Participant terminates by reason of death; 

(d)Participant is entitled to long-term disability benefits from the Company-sponsored long-term disability plan as of the date the involuntary termination would have occurred had the individual been actively at work on such date; 

(e)Participant has notified the Company of his or her intent to retire from the Company prior to the date the Company notified the Participant of his or her involuntary termination; 

(f)Participant fails to return to work immediately following the conclusion of an approved leave-of-absence; 

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(g)Participant is terminated for, or on account of, Cause; or 

h)The Company determines that the payment of benefits under the Plan in connection with such termination of employment would be inconsistent with the intent and purposes of the Plan. 

2.3.Other Benefits.  

(a)Notwithstanding anything herein to the contrary, the Participant and Company acknowledge and agree that in the event of any conflict or inconsistency between the terms of any Employment Arrangement and the terms of this Plan, whichever term is more beneficial to the Participant (including, for example, the amount of Benefits) between this Plan and the Employment Arrangement shall prevail and the amount of Benefits paid to the Participant shall be capped at the amounts provided by such prevailing terms.   In no event shall Participant be entitled to the same type of benefits under both this Plan and any Employment Arrangement for the same event or qualifying termination.  

(b)To the extent that any federal, state, or local law, including, without limitation, so-called “plant closing” laws, or the Worker Adjustment and Retraining Notification act (“WARN Act”), requires the Company to provide benefits of any kind to an employee because of that employee’s involuntary termination or similar event, the Benefits provided under this Plan shall be reduced as determined by the Administrator to the extent of any such other benefits.  

(c)To the extent that any non-U.S. law requires the Company to provide benefits of any kind to an employee or imposes terms more favorable than the terms of the Plan in connection with the employee’s involuntary termination or similar event, the Participant shall be entitled to the better of such mandatory benefits or terms and the Benefits provided under this Plan, without duplication.  To the extent the Company pays any benefits to a non-U.S. Participant outside the Plan in connection with the Participant’s involuntary termination or similar event, such payments shall be reduced by any Benefits available to such Participant under the Plan.

(d)The Company intends for the Benefits provided under this Plan to satisfy any and all statutory obligations which may arise out of an employee’s involuntary termination (including, for the avoidance of doubt, notice or pay in lieu of notice), and the Administrator shall so construe and implement the terms of this Plan.

3.Amount and Form of Benefits. 

3.1. Termination Not in Connection with a Change in Control.  

(a)Subject to the remaining provisions of this Plan, a Participant whose employment is terminated by the Company without Cause more than three months prior to a Change in Control or more than twelve months following a Change in Control shall be entitled to Benefits equal to (x) an amount equal to the Participant’s Base Salary as of the Termination Date for the Base Period described below, paid in the form of Salary 

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Continuation (defined below), based upon the Participant’s Class on the Termination Date, plus (y) Health Care Continuation (defined below) for the Medical Period described below, based upon Participant’s Class at the Termination Date.  

 

	
Class
	
Base Period
	
Medical Period

	
Class 1
	
18 months
	
18 months

	
Class 2
	
12 months
	
12 months

	
Class 3
	
6 – 9 months*
	
6 – 9 months*

*For Participants in Class 3, Benefits shall be calculated at a rate of one month for every full year of service to the Company, subject to a minimum of 6 months and a maximum of 9 months.   Thus, for purposes of illustration, if a Participant was employed by the Company for 4 1⁄2 years as of the Termination Date, then the Base Period and Medical Period will be 6 months.  If a Participant was employed by the Company for 7 1⁄2 years as of the Termination Date, then the Base Period and Medical Period will be 7 months.  If a Participant was employed by the Company for 9 years or more as of the Termination Date, then the Base Period and Medical Period will be 9 months.  

(b)Except as otherwise provided in Section 3.5, “Salary Continuation” means that the Company shall continue to pay Participant’s Base Salary at the rate in effect on the Termination Date during the Base Period provided in Section 3.1(a) above.  The first payment of Salary Continuation shall be paid within sixty (60) days after the Termination Date provided Participant timely executes the Separation and General Release Agreement and the period during which the Separation and General Release Agreement may be revoked expires without revocation.  The Salary Continuation Benefits shall be paid on the Company’s regular payroll dates; provided, however, that if the sixty (60) day period begins in one calendar year and ends in a second calendar year, the first payment of Salary Continuation shall be paid in the second calendar year.  In the event the Participant misses one or more regular payroll periods between the date of termination and the first Salary Continuation payment, the first Salary Continuation payment shall include a “catch up” payment of accrued but unpaid Salary Continuation payments.  

(c)“Health Care Continuation” means that if the Participant is participating in the Company’s group health plan immediately prior to the Termination Date, then subject to timely election and eligibility for benefits under the law known as COBRA, and any law that is the successor to COBRA, the Company shall continue to pay the employer portion of the Participant’s health benefits until the earlier of the end of the Medical Period and the date the Participant becomes re-employed or otherwise ineligible for COBRA.  With respect to a Participant who is employed outside of the United States, such Participant will be eligible to continue to receive medical and dental insurance coverage during the Medical Period at the same level of coverage as on the date of the Participant’s termination of employment, to the extent available under the plans and consistent with applicable law.  

Each Participant shall be required to notify the Company immediately if the Participant becomes covered by a group health plan of a subsequent employer.  No Participant shall be entitled to receive cash or other consideration in lieu of coverage, except as determined by the Administrator.  At the end of the Medical Period, the Participant shall no longer have a right to receive contributions towards continued health plan coverage, 

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which shall be continued only to the extent required by applicable law and only to the extent that Participant continues to timely pay the full amount required for continuation of health plan coverage.

3.2.Termination in Connection with a Change in Control. 

(a)Subject to the remaining provisions of this Plan, a Participant whose employment is terminated by the Company without Cause, or who resigns for Good Reason, within three months prior to a Change in Control or within twelve months following a Change in Control shall be entitled to Benefits equal to (x) an amount equal to the Participant’s Base Salary as of the Termination Date for the Base Period described below, based upon the Participant’s Class on the Termination Date, plus (y) an amount equal to the Participant’s Target Bonus for the fiscal year in which the termination occurs as of the Termination Date multiplied by the number set forth below under Bonus Amount, based upon the Participant’s Class on the Termination Date, plus (z) an amount equal to the Participant’s Medical Benefits for the Medical Period described below, based upon the Participant’s Class on the Termination Date.  

 

	
Class
	
Base Period
	
Bonus Amount
	
Medical Period

	
Class 1
	
24 months
	
2
	
24 months

	
Class 2
	
18 months
	
1.5
	
18 months

	
Class 3
	
12 months
	
1
	
12 months

(b)Except as otherwise required pursuant to Section 3.5, any payments of Benefits under this Section 3.2 shall be paid in a single lump sum, less applicable payroll or other taxes required to be withheld.  The Benefits shall be paid as soon as practicable after the Participant executes the Separation and General Release Agreement and the period during which the Separation and General Release Agreement may be revoked expires, but in no event later than March 15 of the year following the year in which the termination occurs. 

3.3.Conditions and Limitations on Benefits.  Any payments of Benefits are specifically conditioned upon the following: 

(a)The Participant must sign and not later revoke a Separation and General Release Agreement. Under no circumstances will any Benefits be provided to a Participant who elects not to sign, or who revokes, a Separation and General Release Agreement. Each Participant is encouraged to review the Separation and General Release Agreement with his or her personal attorney at his or her own expense, if he or she so desires. 

(b)An executed non-competition, non-solicitation, confidential information and proprietary rights agreement in the form provided by the Company is a condition to eligibility for benefits under this Plan. Under no circumstances shall any employee be entitled to participate in this Plan without an executed non-competition, non-solicitation, confidential information and proprietary rights agreement in a form acceptable to the Company, as determined by the Administrator. The Participant must comply with any 

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non-competition, non-solicitation, confidential information and proprietary rights, or similar restrictive covenants contained in any agreement to which the Participant is a party. If the Participant violates any such agreement, the Company shall have no further obligation to provide any Benefits, and may in its discretion bring suit against the Participant to recover Benefits previously paid. 

(c)The Participant must not have engaged in conduct that would have constituted Cause for dismissal. If the Participant is terminated for a reason other than Cause, and the Company subsequently discovers that the Participant engaged in conduct that would have constituted Cause, the Company shall have no further obligation to provide any Benefits, and may in its discretion bring suit against the Participant to recover Benefits previously paid, and the difference between the premiums actually paid for Medical Benefits and the premiums that would have been required for the same coverage under COBRA. 

3.4.Payment of Severance Benefits upon Participant’s Death. If a Participant dies after the Termination Date and after executing the Separation and General Release Agreement, but before Severance Benefits are paid, any remaining Severance Benefits will be paid to the Participant’s estate in a lump sum within 90 days after the Participant’s death. 

3.5.Compliance with Section 409A. It is the intent of the Company that all amounts payable to a Participant pursuant to this Plan, including without limitation amounts payable under this Section 3, be paid in a manner that satisfies the requirements of Section 409A, to the extent applicable, and to the maximum extent possible this Plan shall be so interpreted. Without limiting the foregoing: 

(a)Each installment of Severance Benefits paid pursuant to Section 3.1 shall constitute a separate “payment” for purposes of Section 409A. For purposes of this Agreement, the term “Section 409A Payment” shall mean: (i) each Severance Benefit that is paid after the later of March 15 of the calendar year following the year in which the Termination Date occurs or the fifteenth day of the third month following the end of the Company’s fiscal year in which the Termination Date occurs, but only to the extent that such Severance Benefit, when added to the sum of all Severance Benefits paid after such date, exceeds two times the lesser of the Participant’s Base Salary at the end of the year preceding the year in which the Termination Date occurs or the dollar limitation in effect under Section 401(a)(17) of the Internal Revenue Code in the year in which the Termination Date occurs, and (ii) any other payment that the Administrator determines in good faith constitutes a payment of deferred compensation subject to Section 409A. 

(b)If a Participant is a “specified employee” as defined in Section 409A at the time of the Participant’s termination of employment, then no Section 409A Payments shall be paid to the Participant until the first business day that is more than six months following the Termination Date, and all Section 409A Payments that would otherwise have been paid prior to such date shall be paid on such date, without interest, in a lump sum. 

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(c)No Section 409A Payment shall be paid at a time other than the time specified herein, whether by amendment to the Agreement or otherwise, and no amount shall be paid in substitution for any Section 409A Payment if such amount is paid at a different time than the Section 409A Payment would have been paid, except as permitted by Section 409A. Without limiting the generality of the foregoing, if any Participant becomes entitled to Severance Benefits pursuant to Section 3.2 by reason of a termination occurring after a Change in Control that does not constitute a “change in control event” with respect to such Participant as defined in Section 409A, then a portion of the Severance Benefit payable under Section 3.2 equal to the sum of all Section 409A Payments that the Participant would have received under Section 3.1 if he or she had been terminated more than three months prior to a Change in Control shall be paid in installments at the same times that such Section 409A Payments would have been paid. 

(d)If any termination of employment occurs that does not constitute a separation from service as defined in Section 409A, then any Section 409A Payment that becomes payable by reason of such Termination shall not be paid until the Participant incurs a separation from service as defined in Section 409A. 

3.6. Reduction of Payments to Comply with Section 280G. 

(a)Anything in this Plan to the contrary notwithstanding, in the event that the amount of the Severance Benefits, and any additional compensation, payment or distribution by the Company to or for the benefit of Participant, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder (the “Total Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, the following provisions shall apply:

(i)If the total Severance Benefits, reduced by the sum of (1) the Excise Tax (as defined below) and (2) the total of the Federal, state, and local income and employment taxes payable by Participant on the amount of the Total Severance Payments which are in excess of the Threshold Amount (as defined below), are greater than or equal to the Threshold Amount, Participant shall be entitled to the full benefits payable under this Plan.

(ii)If the Threshold Amount is less than (x) the Total Severance Payments, but greater than (y) the Total Severance Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Total Severance Payments which are in excess of the Threshold Amount, then the Total Severance Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Total Severance Payments shall not exceed the Threshold Amount.  In such event, the Total Severance Payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time 

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(e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.

(b)For the purposes of this Section 3.6, “Threshold Amount” shall mean three times the Participant’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Participant with respect to such excise tax.

(c)The determination as to which of the alternative provisions of this Section 3.6 shall apply shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations to both the Company and Participant within 15 business days of the Termination Date, or at such earlier time as is reasonably requested by the Company.  For purposes of determining which of the alternative provisions of this Section 3.6 shall apply, Participant shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Participant’s residence on the date of termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.  Any determination by the Accounting Firm shall be binding upon the Company and Participant.

3.7.Withholding. The Company will withhold from all Severance Benefits all required federal, state, local and other taxes and any other payroll deductions required. 

4.Administration. 

The Administrator has the sole and unlimited discretion to interpret the terms of the Plan, to adopt such rules and procedures as it may determine to be appropriate for the administration of the Plan, and to make all determinations about eligibility and payment of benefits. All decisions of the Administrator, any action taken by the Administrator with respect to the Plan and within the powers granted to the Administrator under the Plan, and any interpretation by the Administrator of any term or condition of the Plan, are conclusive and binding on all persons, and will be given the maximum possible deference allowed by law. The Administrator may delegate and reallocate any authority and responsibility with respect to the Plan. The authority of the Administrator may also be exercised in routine and administrative matters by the Company’s Chief People Officer, or persons acting under his or her authority. 

5.Amendment or Termination. 

The Company reserves the right, in its sole and unlimited discretion, to amend or terminate the Plan at any time by action of the Committee or the Board, without prior notice to any Participant; provided, however, that no such amendment or termination shall materially adversely affect the interests or rights of any Participant whose Termination Date has occurred prior to any such amendment or termination of the Plan; and provided further that in the event of a termination or amendment of the Plan, if any Participant is terminated after the date of 

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amendment or termination of the Plan, but prior to the date on which the Participant’s employment agreement would have expired had it not been terminated, the Participant shall be entitled to (i) the same Benefits the Participant would have received under the terms of such employment agreement had it not been terminated, or (ii) the Benefits to which the Participant would be entitled under this Plan, whichever is the greater benefit to the Participant. 

6.Claims Procedure. 

6.1.Notice of Claim. Any person who believes that he or she is entitled to any payment under the Plan (“Applicant”) may submit a claim in writing to the Company’s human resources department. If a claim is denied in whole or in part, the Company shall furnish the Applicant within 90 days after receipt of such claim with a written notice which specifies the reason for the denial, refers to the pertinent provisions of the Plan on which the denial is based, describes any additional material or information necessary for properly completing the claim and explains why such material or information is necessary, and explains the claim review procedures of this Section 6, including the Applicant’s right to file suit in accordance with Section 6.4 if the claim is denied following review. The 90-day period for responding to a claim may be extended by up to an additional 90 days if the Applicant is given, by the end of the initial 90-day period, a written notice of the extension, including an explanation of the reason for the extension and an estimate of when the claim will be resolved. 

6.2.Review of Decision. If within 60 days after receipt of a notice of denial pursuant to Section 6.1, the Applicant so requests in writing, the Committee shall review such decision. The Committee’s decision on review shall be in writing, and shall include specific reasons for the decision, written in a manner calculated to be understood by the Applicant, and shall include specific references to the pertinent provisions of the Plan on which the decision is based, and shall explain the Applicant’s right to file suit in accordance with Section 6.4. It shall be delivered to the Applicant within 60 days after the request for review is received, unless extraordinary circumstances require a longer period, in which event the 60-day period may be extended by up to an additional 60 days if the Applicant is given, by the end of the initial 60-day period, a written notice of the extension, including an explanation of the reason for the extension and an estimate of when the appeal will be resolved. 

6.3.Construction. The provisions of this Section 6 are intended to comply with the requirements of ERISA Section 503 and the regulations issued thereunder, and shall be so construed. In accordance with such regulations, each Applicant shall be entitled, upon written request and without charge, to review and receive copies of all material relevant to his or her claim within the meaning of Department of Labor Regulations 29 C.F.R. Section 2560.503-1(m)(8), and to be represented by a qualified representative. 

6.4.Process for Appeal. In further consideration of being permitted to participate in the Plan, each Participant agrees on behalf of himself, and all other persons claiming through him, that he will not commence any action at law or equity (including without limitation any action under ERISA Section 502), or any proceeding before any administrative agency, for payment of any benefit under this Plan without first filing a written claim for such benefit and appealing the denial of that claim in accordance with the provisions of this Section 6, and in any 

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event will not commence any such action more than one hundred eighty (180) days after the appeal is denied in accordance with subsection 6.2. 

7.Inalienability. 

In no event may any Participant sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan and any attempt to do so shall be null and void. At no time will any such right or interest be subject to the claims of creditors or liable to attachment, execution or other legal process. 

8.Recovery of Payments Made by Mistake. 

A Participant shall be required to return to the Company any Severance Benefit, or portion thereof, paid by a mistake of fact or law. 

9.No Enlargement of Employment Rights. 

Neither the establishment or maintenance of the Plan, the payment of any amount hereunder by the Company nor any action of the Company shall confer upon any individual any right to continue as an employee of the Company or any Subsidiary thereof or as a Participant under this Plan nor any right or interest in the Plan other than as provided in the Plan. 

10.Mitigation and Offset

10.1A Participant who becomes entitled to receive Severance Benefits pursuant to Section 3.1 shall, as a condition to his or her continued eligibility for Severance Benefits, use reasonable best efforts to seek other employment and to take other reasonable actions to mitigate the amounts payable under Section 3.1 hereof. If the Participant obtains other employment during the Base Period, the Company shall have the right to offset against the Severance Benefits the amount earned by the Participant from another employer during the Base Period. For purposes of this Section 10.1, the Participant shall inform the Company regarding his or her employment status following termination and during the Base Period. The Company shall have the right to withhold Severance Benefits if the Participant fails to periodically certify his or her employment status in accordance with procedures established by the Company, or to recover any Severance Benefits to a Participant who fails to advise the Company of other employment. If a Participant receiving Health Care Continuation Benefits under Section 3.1 obtains other employment and is eligible for medical coverage through such employment, the subsidized portion of Health Care Continuation shall terminate regardless of whether the Participant continues to be eligible for COBRA coverage, and the Participant shall thereafter be required to pay the full COBRA premium. 

10.2The mitigation and offset provisions of Section 10.1 shall not apply to a Participant who becomes entitled to receive Severance Benefits pursuant to Section 3.2 by reason of a termination occurring in within three months prior or 12 months following a Change in Control. Such Participants shall not be required to mitigate damages or to offset Severance Benefits. Nothing contained herein shall be construed to preclude the Company from discontinuing Health Care Continuation to a Participant who has obtained other medical 

13

 

 

coverage in accordance with COBRA, on behalf of an Executive who has obtained other employment. 

10.Governing Law. 

The parties to this Plan acknowledge and agree that this Plan and the parties’ rights and obligations hereunder shall be construed, interpreted, administered and enforced in accordance with ERISA, and to the extent applicable and not pre-empted by Federal law, in accordance with the laws of the Commonwealth of Massachusetts, without regard to the Commonwealth of Massachusetts’s conflict of law principles. 

11.Severability. 

If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included. 

12.Assignment. 

The Company may assign its rights under the Plan to any successor in interest, whether by merger, consolidation, sale of assets, or otherwise. The Plan shall be binding whether it is between the Company and Participant or any successor or assignee of the Company or affiliate thereof and Participant. 

13.Unfunded.  

The Plan is intended to create an unfunded compensation arrangement.  Nothing contained in the Plan, and no action taken pursuant to the Plan, shall create or be construed to create a trust of any kind.  A Participant’s right to receive the Benefits shall be no greater than the right of an unsecured general creditor of the Company.  All Benefits shall be paid from the general funds of the Company, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such awards.  There shall not vest in any Participant or beneficiary any right, title, or interest in and to any specific assets of the Company.  

14.Statement of ERISA Rights.  

As an employee eligible to participate in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA).  

14.1Receive Information About Your Plan and Benefit.

ERISA provides that all plan participants shall be entitled to:

(i)Examine, without charge, at the Administrator’s office and at other specified locations, such as worksites, all documents governing the plan, and (if applicable) a copy of the latest annual report (Form 5500 Series) filed by the plan with the U. S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

14

 

 

(ii)Obtain, upon written request to the Administrator, copies of documents governing the operation of the plan, and (if applicable) copies of the latest annual report (Form 5500 Series) and updated summary plan description.  The Administrator may make a reasonable charge for the copies.

(iii)Receive a summary of the plan’s annual financial report (if applicable).

14.2Actions by Plan Fiduciaries.  

No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.

14.3Enforce Your Rights. 

If your claim for a severance benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.  

Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court.  In such a case, the court may require the Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.  If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state of Federal court.  If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U. S. Department of Labor, or you may file suit in a Federal court.  The court will decide who should pay court costs and legal fees.  If you are successful the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

14.4Assistance with Your Questions.  

If you have any questions about your plan, you should contact the Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents form the Administrator, you should contact the nearest office of the Employee Benefits Security Administration.  U. S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D. C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 800.998.7542.

15

 

 

IN WITNESS WHEREOF, TripAdvisor, Inc., by its duly authorized officer, has executed the Plan on the date indicated below. 

 

	
 
	
 
	
TRIPADVISOR LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Seth J. Kalvert

	
 
	
 
	
Name:
	
Seth J. Kalvert

	
 
	
 
	
Title:
	
SVP, General Counsel and Secretary

 

 

 

16

 

 

MISCELLANEOUS INFORMATION

 

	
1.
	
PLAN NAME:

	
 
	
TripAdvisor, Inc. Executive Severance Plan

	
2.
	
EMPLOYER (PLAN SPONSOR):

	
 
	
TripAdvisor, Inc. 

	
 
	
400 First Ave.

	
 
	
Needham, MA 02494

	
 
	
(781) 800-5800

	
3.
	
EMPLOYER IDENTIFICATION NUMBER:  XX-XXXXXXX

	
4.
	
PLAN NUMBER:  5XX 

	
5.
	
PLAN YEAR:  Calendar year, January 1 – December 31

	
6.
	
PLAN ADMINISTRATOR AND AGENT FOR SERVICE OF LEGAL PROCESS:

	
 
	
Chief People Officer

	
 
	
TripAdvisor, Inc. 

	
 
	
400 First Ave 

	
 
	
Needham, Massachusetts  02494

	
 
	
(781) 800-5800 

	
7.
	
TYPE OF PLAN:

	
 
	
The Plan is an employee welfare benefit plan under ERISA offering severance benefits. 

 

17aimt-ex102_251.htm

 

Exhibit 10.2

Second AMENDMENT To Lease

 

This Second Amendment To Lease (“Second Amendment”) is made effective and entered into as of June 27, 2017, by and between Diamond Marina LLC, a California limited liability company, and Diamond Marina II LLC, a California limited liability company (collectively “Landlord”), and Aimmune Therapeutics, Inc., a Delaware corporation, formerly known as Allergen Research Corporation, Inc., a Delaware corporation (“Tenant”).

 

 

RECITALS

 

A.Landlord and Tenant are parties to that certain Lease Agreement (“Lease”) dated February 23, 2015 and that First Amendment (“First Amendment”), pursuant to which Landlord leases to Tenant and Tenant leases from Landlord the Second Floor (Suite 200), which contains approximately 26,355 net rentable square feet, and a portion of the Third Floor (Suite 300), which contains approximately 11,665 net rentable square feet (collectively “Current Premises”), at 8000 Marina Boulevard, Brisbane, California, 94005 (“Building”).  Capitalized terms used but not defined herein shall have the meanings given in the Lease.   

 

B.Landlord desires to lease to Tenant and Tenant desires to lease from Landlord a portion of the Third Floor (Suite 301) of the Building, which contains approximately 14,841 net rentable square feet and is shown in the floor plan attached hereto as Exhibit A (“Expansion Premises”).

 

NOW, THEREFORE, in consideration of the foregoing Recitals, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.Commencement.  The Lease of the Expansion Premises shall commence upon the later of January 1, 2018 and the date Landlord delivers the Expansion Premises to Tenant (which date must be a Business Day) with the Tenant Improvement Work substantially completed (“Expansion Premises Commencement Date”).  Landlord shall use commercially reasonable best efforts to deliver the Expansion Premises to Tenant with the Tenant Improvement Work substantially completed on or before January 1, 2018, and Tenant agrees that it shall fully cooperate with Landlord throughout the construction process to meet this timeline goal.

 

2.Delivery and Tenant Improvement Work.  Landlord shall deliver the Expansion Premises to Tenant in good condition and repair and in compliance with applicable building codes and laws with the “Tenant Improvement Work” which shall be performed by Landlord at Landlord’s expense pursuant to the terms of the “Work Letter” attached hereto as Exhibit B.    Following delivery, the term “Premises” shall reflect both the Expansion Premises and the Current Premises combined.  

 

	
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3.Term.  The Term of the Expansion Premises shall commence upon the Expansion Premises Commencement Date and shall end on June 30, 2024.  The Term of the Current Premises shall also be extended to be coterminous, so that Tenant’s Lease of the Expansion Premises and the Current Premises shall expire on June 30, 2024 (“Lease Expiration Date”).

 

4.Monthly Base Rent for Expansion Premises.  The monthly Base Rent for the Expansion Premises shall commence on the Expansion Premises Commencement Date and shall be as follows:

 

For Suite 301:

					
	
Period
	
 
	
Monthly Base Rent Rate
	
 
	
Monthly Base Rent

	
Through Dec 31, 2018
	
 
	
$3.70
	
 
	
$54,912

	
Jan 1, 2019 – Dec 31, 2019
	
 
	
$3.81
	
 
	
$56,544

	
Jan 1, 2020 – Dec 31, 2020
	
 
	
$3.93
	
 
	
$58,325

	
Jan 1, 2021 – Dec 31, 2021
	
 
	
$4.05
	
 
	
$60,106

	
Jan 1, 2022 – Dec 31, 2022
	
 
	
$4.17
	
 
	
$61,887

	
Jan 1, 2023 – Dec 31, 2023
	
 
	
$4.30
	
 
	
$63,816

	
Jan 1, 2024 – June 30, 2024
	
 
	
$4.43
	
 
	
$65,730

 

Tenant’s monthly Base Rent during Months 1 – 3 shall be 100% Abated.  Tenant’s monthly Base Rent during Months 4 – 6 shall be 50% Abated. In lieu of monthly rent credits for such Abated Rent, Landlord may pay Tenant all or a portion of the unapplied credits or give more than each month’s required credit earlier against rent otherwise due.

 

5.Monthly Base Rent for the Current Premises.  The monthly Base Rent for the Current Premises shall remain as stated in the First Amendment, with additional three percent (3%) annual escalations through the extended portion of the Term shown as follows:

 

For Suite 200:

					
	
Period
	
 
	
Monthly Base Rent Rate
	
 
	
Monthly Base Rent

	
Dec 1, 2021 – Nov 30, 2022
	
 
	
$4.12
	
 
	
$108,569

	
Dec 1, 2022 – Nov 30, 2023
	
 
	
$4.24
	
 
	
$111,826

	
Dec 1, 2023 – June 30, 2024
	
 
	
$4.37
	
 
	
$115,181

 

For Suite 300:

					
	
Period
	
 
	
Monthly Base Rent Rate
	
 
	
Monthly Base Rent

	
Dec 1, 2021 – Nov 30, 2022
	
 
	
$4.12
	
 
	
$48,055

	
Dec 1, 2022 – Nov 30, 2023
	
 
	
$4.24
	
 
	
$49,496

	
Dec 1, 2023 – June 30, 2024
	
 
	
$4.37
	
 
	
$50,981

 

6.Security Deposit.  The Security Deposit shall remain $304,124.  

 

7.Parking, Pro Rata Share, and Base Year.  Upon the Expansion Commencement Date, Tenant’s Pro Rata Share (to be 26.2%) shall be increased accordingly 

 

	
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based on the additional square footage leased.  From and after the Expansion Commencement Date, Tenant shall be entitled to use 3.3 parking spaces per 1,000 rentable square feet of space in the Premises (i.e., 173 parking spaces).  Retroactive to January 1, 2017, The Base Year for the both the Current Premises and the Expansion Premises shall be Calendar Year 2017.  The Operating Expense Excess payments made by Tenant for the Current Premises from January – June 2017 totals $8,843, and such payment shall be refunded by Landlord to Tenant.  Notwithstanding anything to the contrary, (a) Operating Expenses for the Base Year shall be determined as if the Building had been 100% occupied and Landlord had been supplying services to of the Rentable Area of the Building, (b) Operating Expenses shall exclude deductibles for earthquake and flood insurance and other costs of uninsured casualty to the extent Tenant’s Pro Rata Share thereof exceeds $50,000, (c) to the extent Operating Expenses for a calendar year include premiums for insurance not carried during the Base Year, then Operating Expenses for the Base Year shall be increased as if Landlord carried such insurance during the Base Year, and (d) if a special assessment payable in installments is levied against the Building, Operating Expenses and Real Estate Taxes for any year shall include only the installment of such assessment and any interest payable or paid during such year as if such assessment were paid over the longest possible term.

 

8.Right of First Offer.  By virtue of the First Amendment (Section 8 + Exhibit C), Tenant already has an on-going Right of First Offer (“ROFO”) on the 4th Floor of the Building (the 4th Floor’s current tenant is Stella & Dot). Such ROFO right shall remain in full force and effect.  Upon execution of this Second Amendment, and pursuant to the terms and conditions attached hereto as Exhibit C, Tenant shall additionally be granted an on-going Right of First Offer (“ROFO”) with respect to all or any space which may become available for lease located on the 1st, 5th, and 6th Floor of the Building (each a “ROFO Premises”) subject to the existing rights of tenants leasing the ROFO Premises on such floors as of the date hereof and any ROFO rights thereto existing as of the date hereof.

 

9.FF&E Allowance.  Upon Tenant’s acceptance of the Expansion Premises and delivery of the Acceptance Form, Landlord shall pay to Tenant an FF&E Allowance of One Hundred Thousand Dollars ($100,000), to reimburse Tenant for its reasonable costs associated with construction of and its occupancy in the Expansion Premises, which may include “soft” costs associated with making the Premises ready for Tenant’s occupancy, such as consultants, architects, design, engineering costs, IT cabling, furniture, and Exterior Building Signage (the “FF&E Allowance”).

 

10.Renewal Option.  Tenant’s “Renewal Option” described in Section 4.4 of the Lease shall remain in full force and affect, except that the Renewal Option shall be for a five (5) year term (the “Renewal Term”).

 

 

	
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11.Exterior Building Signage. Landlord shall provide Tenant with the right, subject to Landlord’s reasonable consent, to install one (1) Exterior Building-Top Sign facing Highway 101 and suite entry signage on the second and third floors on the doors to the Premises or the walls adjacent thereto, pursuant to the following terms and conditions:

	
 
	
A.
	
The name shown on the Building-top sign shall be “Aimmune” or “Aimmune Therapeutics” and may in either case, at Tenant’s option, include Tenant’s logo.

	
 
	
B.
	
Tenant’s right shall be subject to applicable governmental approvals, the City of Brisbane, and the Sierra Point Owners Association. The “Sierra Point Building-Mounted Signage Standards” call for maximum dimensions of building top signage to be 6’ tall x 41’ 6” wide. (http://www.brisbaneca.org/sites/default/files/SierraPointSignProgram_2016.pdf) The location of the Building-top sign shall be subject to such approvals; Landlord consents to the installation of the sign in the location of the red box on this photograph of the Building:

 

	
 
	
C.
	
Prior to installing any Building-top sign, Tenant shall submit to Landlord detailed plans showing the proposed signage and the details for its installation, and obtain Landlord’s advance written approval, which shall not be unreasonably withheld.

	
 
	
D.
	
The Building-top sign shall be personal to the original Tenant or its affiliate assignee or any Permitted Transferee. The Building-top signage right cannot be transferred to any subtenant, assignee, transferee, or third party other than to an affiliate assignee or any Permitted Transferee.  

	
 
	
E.
	
Tenant’s right to exterior building signage is not exclusive, and Landlord hereby advises Tenant that it may permit other tenants to install additional exterior Building-top signs.

	
 
	
F.
	
Tenant shall be responsible for all costs of installation, maintenance, and removal of the Building Signage.  Removal of the Building-top signage shall include any necessary repair of the Building in order to return the Building to its condition before the signage was installed.  In the event that Tenant fails to properly maintain or remove the Building Signage, then Landlord shall have right to perform such acts at Tenant’s expense. 

 

	
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G.
	
Subject to applicable governmental approvals, the Building-top sign may at Tenant’s option be a lit sign.  

	
 
	
H.
	
Tenant’s right to exterior building signage shall be terminated in the event of any of the following:

	
 
	
•
	
Tenant removes the Building-top sign and does not install a new sign within twelve (12) months

	
 
	
•
	
Tenant Default that remains uncured for a period exceeding thirty (30) days

	
 
	
•
	
Tenant vacates the Premises

	
 
	
•
	
The event of any Assignment, Sublease, or Transfer of fifty percent (50%) or more of the Premises other than to an affiliate assignee or any Permitted Transferee. 

	
 
	
•
	
The expiration of the Lease

 

12.Other Lease Changes.  

	
 
	
A.
	
Section 4.5 of the Lease (Substitution of Space) is hereby deleted in its entirety.  

	
 
	
B.
	
In Section 14.1(b) of the Lease, the phrase “or Tenant has defaulted under this Lease on two or more occasions within the prior year” is hereby deleted. 

	
 
	
C.
	
Section 14.1(c) of the Lease is hereby replaced with: “the assignment or sublease is for a portion of a floor or would result in the dividing or sub-demising of a floor.” 

	
 
	
D.
	
Section 14.7 of the Lease (Permitted Transfers) is hereby amended by deleting the phrase “and credit quality” throughout the Section.

	
 
	
E.
	
Section 15.1(c) of the Lease is hereby replaced with: “The abandonment or vacating for more than six (6) months of the Premises by Tenant.

	
 
	
F.
	
Section 29.12 of the Lease (Confidentiality) is hereby deleted.

	
 
	
G.
	
Section 7.2 of the Lease (Operating Expenses) is hereby amended: to the extent Operating Expenses for a calendar year include premiums for earthquake insurance not carried during the Base Year, then Operating Expenses for the Base Year shall be increased as if Landlord carried such earthquake insurance during the Base Year.

	
 
	
H.
	
Section 7.3 of the Lease (Occupancy Assumption) is hereby amended by deleting the phrase “at Landlord’s Option” from the first sentence.

	
 
	
I.
	
Pursuant to Section 16.5 of the Lease, within sixty (60) days after the execution of this Second Amendment, Landlord shall use commercially reasonable best efforts to cause its current security holder to execute a Subordination Agreement, Attornment and Nondisturbance Agreement generally in the form attached hereto as Exhibit D. The following language will be added to the end of Section 16.5 of the Lease:  “Landlord and Tenant agree that any subordination to any future financing will include non-disturbance on a lender’s commercially reasonable subordination and non-disturbance form.  

 

	
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By way of example, the parties agree that the form attached as Exhibit D to the Second Amendment is commercially reasonable.”

 

13.No Further Amendment.  The Lease, as modified by this Second Amendment, shall remain in full force and effect.  

 

14.Confirmation of Lease.  Tenant hereby represents and warrants to Landlord that, as of the date hereof, (a) the Lease is in full force and effect and has not been modified except pursuant to the First Amendment and this Second Amendment; (b) Tenant has not subleased or assigned any of its right, title and interest in and to the Lease and has full power and authority to enter into and perform its obligations hereunder; (c) to Tenant’s knowledge without duty of inquiry, there are no defaults on the part of Landlord existing under the Lease; (d) to Tenant’s knowledge without duty of inquiry, there exists 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; (e) this Second Amendment has been duly authorized, executed and delivered by Tenant and, if executed and delivered by Landlord, shall constitute the legal, valid and binding obligation of Tenant; and (f) there are no actions, whether voluntary or otherwise, pending against Tenant under the bankruptcy or insolvency laws of the United States or any state thereof.

 

15.Voluntary Agreement.  The parties have read this Second Amendment, and on the advice of counsel they have freely and voluntarily entered into this Second Amendment.

 

16.Representation by Counsel.  Each party acknowledges that it has been represented by independent legal counsel of its own choice in connection with the execution of this Second Amendment and has had an adequate opportunity to investigate the subject matter of this Second Amendment before executing this Second Amendment.

 

17.Brokerage.  Landlord and Tenant each warrant to the other that it has not had dealings with any other finder, broker, or agent in connection with this Second Amendment, other than CBRE (Todd Graves) representing Tenant and Newmark Cornish & Carey (Craig Kalinowski) representing Landlord, who shall both be paid by Landlord pursuant to their separate agreement.  Each party shall indemnify, defend and hold harmless the other party from and against any and all costs, expenses or liability for commissions or other compensation or charges claimed by any other finder, broker, or agent based on dealings with the indemnifying party with respect to this Second Amendment.  

 

18.General Provisions.  This Second Amendment shall bind and inure to the benefit of the parties and their respective successors and assigns.  This Second Amendment shall be governed, and construed in accordance with, the laws of the State of California without regard to or application of the principles of conflict of laws.  This Second Amendment together with the Lease and the First Amendment constitutes the entire agreement between the parties with respect to the subject matter hereof and thereof.

 

 

	
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19.Counterparts.  This Second Amendment may be signed in two or more counterparts.  When at least one such counterpart has been signed by each party, this Second Amendment shall be deemed to have been fully executed, each counterpart shall be deemed to be an original, and all counterparts shall be deemed to be one and the same agreement.

 

 

In Witness Whereof, the parties have executed this Second Amendment to Lease as of the date first set forth above.

 

	
 
	
TENANT:
	
 
	
LANDLORD:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Aimmune Therapeutics, Inc.
	
 
	
Diamond Marina LLC

	
 
	
a Delaware corporation
	
 
	
a California limited liability company

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ ERIC BJERKHOLT
	
 
	
By:
	
 
	
/s/ STEPHEN DIAMOND

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Name:
	
 
	
Erik Bjerkholt
	
 
	
Name:
	
 
	
Stephen Diamond

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Title:
	
 
	
CFO
	
 
	
Title:
	
 
	
Manager

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Date:
	
 
	
June 30, 2017
	
 
	
Date:
	
 
	
June 30, 2017

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Diamond Marina II LLC

	
 
	
 
	
 
	
 
	
 
	
a California limited liability company

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
By:
	
 
	
/s/ ANDREW DIAMOND

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Name:
	
 
	
Andrew Diamond

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Title:
	
 
	
Manager

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Date:
	
 
	
June 30, 2017

 

 

	
Aimmune Second Amendment
	
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EXHIBIT A

 

FLOOR PLAN OF EXPANSION PREMISES

 

 

	
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EXHIBIT B

 

WORK LETTER FOR TENANT IMPROVEMENTS

 

 

Tenant Improvement Work.  Landlord at Landlord’s expense shall deliver the Expansion Premises to Tenant having completed the following “Tenant Improvement Work” at its sole cost and expense:  

 

	
 
	
1)
	
Generally consistent with the “Reconfigured Floor Plan” attached hereto as Exhibit B-1, Landlord shall construct new interior improvements consisting of new offices, conference rooms, break room, and reception area. Demising walls and doors currently dividing the Third Floor shall also be removed. 

	
 
	
2)
	
With the construction of the new walls and rooms, Landlord shall also perform related as-needed modifications to the lighting fixture and switch layout, HVAC System distribution, and Fire Life Safety & Sprinkler distribution.

	
 
	
3)
	
Electrical: there shall be at least 2 electric outlets per office, j-boxes for Tenant’s workstations, and miscellaneous electric outlets for Tenant’s printers, appliances, board room AV equipment, network equipment, and other typical standard office needs.  

	
 
	
4)
	
The new rooms shall be constructed with full-height doors, frames, and glass sidelights, consistent with the finishes for the pre-existing offices. 

	
 
	
5)
	
All new building standard carpet tiles (Shaw Contract Carpet Tiles - Style: Stipple (5T116); Color: Graphite (13510)) shall be installed throughout the office areas of the entire third floor.  The flooring in the reception area and break room shall be polished concrete or Armstrong LVT or similar product. 

	
 
	
6)
	
All new paint as needed throughout the entire third floor.  Walls shall primarily be painted white, with accent colors for selected walls. 

	
 
	
7)
	
The existing ceiling lighting, grid and tiles shall remain, with the cleaning, repair, or replacement of any damaged or stained ceiling tiles so that the ceiling grid looks in good condition.

	
 
	
8)
	
The existing exterior window blinds shall remain, with the cleaning, repair, or replacement of any damaged or stained window blinds so that the window blinds look in good condition.

	
 
	
9)
	
The Break Room shall be redesigned with new cabinetry, sink with garbage disposal, two dishwashers, and electrical to accommodate Tenant’s appliances.  The flooring in the Break Room shall be polished concrete or Armstrong LVT or similar product.

	
 
	
10)
	
3 IT Rooms – There are 3 IT Rooms (2 located on the 3rd Floor and 1 located on the 2nd Floor), and each shall be equipped with 24/7 Cooling 

 

	
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sized to Tenant’s current needs. Additionally, on both the 2nd Floor and 3rd Floor shall each have 1 dedicated circuit connected to the Building’s emergency power system.  

Tenant’s Construction Contact. Tenant’s Construction Contact, who shall be empowered by Tenant to make decisions and respond to questions raised by Landlord during the construction of Tenant Improvement Work, shall be:  Mark Camarena, mcamarena@aimmune.com. 

Special Conditions.  All of Landlord’s work shall be performed in a good and workmanlike manner, using materials of good quality and in accordance with law.  Landlord shall bear responsibility to construct all improvements consistent with any applicable building codes and laws.  Tenant agrees that Landlord has the right to modify the Tenant Improvement Work as required by law.  Tenant agrees to promptly respond to any inquiry or question of Landlord for the construction of these improvements.  Following Delivery of the Premises, Landlord shall have no further responsibility to perform improvements to the Premises, subject to a Punch List of minor items to be completed following Delivery and otherwise subject to the terms of the Lease; except, if required by written notice from governmental jurisdiction, Landlord shall be responsible to perform ADA, Title 24, or other code compliance work for the Expansion Premises as delivered.  

Exclusions.  For avoidance of doubt, the following is excluded from the Landlord’s Tenant Improvement Work: furniture, fixtures, equipment, network cabling, TV cabling and service, AV systems, office signage, specialty finishes, cabinetry (excluding new Break Room cabinetry), special power systems, security systems, break room appliances (excluding dishwashers and garbage disposal), moving & relocation, server room set-up, or any other items not included above.  

Early Access.  Tenant shall be permitted at least four (4) weeks of early access to the entire third floor prior to the Expansion Premises Commencement Date, without rental obligation, for the purpose of preparing the space for occupancy.

Stairwell Improvements.  Tenant shall be permitted to install, maintain and operate, at Tenant’s sole cost and expense, a keycard entry system in both stairwells on the second and third floors for entry into the Premises on both floors and a video surveillance system in connection therewith.  In such event, provided Tenant’s system is compatible with the Building system then Landlord shall program the main entry to the Building to accept the same keycards used for Tenant’s stairwell keycard entry system.  

 

	
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EXHIBIT B-1

RECONFIGURED FLOOR PLAN

 

	
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EXHIBIT C

 

RIGHT OF FIRST OFFER TERMS

 

Tenant’s Right of First Offer (“ROFO”) is based on and subject to the following conditions: 

(a)The ROFO shall be subject to the existing rights of any Tenants leasing the ROFO Premises as of the date hereof.   The ROFO shall not limit Landlord’s ability to extend or renew the leases of those tenants now or at any time in the future in possession of any ROFO Premises. 

(b)The ROFO Premises will be incorporated into the Leased Premises except that (a) the economic terms for the ROFO Premises shall be as set forth in the ROFO Notice or as otherwise agreed in writing by the parties, (b) the Lease Term shall be a minimum of five (5) years, (c) Tenant’s Pro Rata Share shall be increased to reflect the addition of the ROFO Premises, and (d) the number of parking spaces shall be adjusted to reflect the addition of the ROFO Premises.  Unless specified otherwise in the ROFO Notice, the ROFO Premises shall be leased on an “as-is” basis, and Landlord shall have no obligation to improve the ROFO Premises or grant Tenant any improvement allowance for the ROFO Premises unless Landlord intends to offer (or offers) any such concessions in the ROFO Notice. 

(c)The ROFO Premises must be accepted by and leased to Tenant in its entirety.

(d)Anything herein to the contrary notwithstanding, Tenant shall have no rights with respect to the ROFO Premises if:

(i)an Event of Default exists and is continuing, either on the date Landlord delivers the ROFO Notice to Tenant or when the ROFO Premises are to be incorporated into this Lease;  

(ii)Tenant has assigned or sublet any portion of the Premises (other than pursuant to a Permitted Transfer) as of the date Landlord would otherwise deliver the ROFO Notice;

(iii)Tenant or a Permitted Transferee is not occupying the Premises on the date Landlord would otherwise deliver the ROFO Notice; or

(iv)the ROFO Premises is not intended for the exclusive use of Tenant or a Permitted Transferee.

Tenant’s sole rights as to the ROFO Premises shall be as follows:

(e)At all times during the Term of the Lease, and prior to offering the ROFO Premises for lease to any third party, Landlord shall deliver a written notice (the 

 

	
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“ROFO Notice”) to Tenant setting forth the terms upon which Landlord proposes to lease all or a portion of any ROFO Premises defined in this First Amendment.    

(f)Tenant shall have five (5) business days in which to accept the terms contained in the ROFO Notice or otherwise to reach agreement to incorporate such ROFO Premises into the Lease.  If Landlord and Tenant do not so reach agreement within such period and thereafter incorporate the applicable ROFO Premises into the Lease, Landlord shall be free to market the ROFO Premises to third parties; provided that Landlord shall not enter into an agreement to lease the ROFO Premises on terms that are materially more favorable to the third party than those set forth in the ROFO Notice without submitting such terms to Tenant in a new ROFO Notice.  For purposes hereof, the terms offered to a third party shall be deemed to be materially more favorable than those set forth in the ROFO Notice if there is more than a ten percent (10%) reduction in the effective cost per square foot of Rentable Area, considering all of the applicable economic terms, including, without limitation, the length of term, the net rent, and any expense or other financial escalation, or other material modification of the size or condition of the ROFO Premises being offered and/or any concessions offered in connection with such space.  If the terms agreed to with a third party are materially more favorable than those set forth in the ROFO Notice, then Landlord shall so inform Tenant with a new ROFO Notice and Tenant shall have the right, for a period of ten (10) business days, to accept such terms in writing and thereafter promptly to enter into an amendment of the Lease incorporating the ROFO Premises, subject to subsection (b) above.  In the event Landlord and Tenant do not enter into such amendment within the period specified, Landlord shall be free to enter into a lease with a third party on terms not materially more favorable to the third party than those offered to Tenant.  

(g)If Landlord fails to enter into a lease agreement with a third party with respect to the ROFO Premises within six (6) months after the date of the ROFO Notice, Tenant’s ROFO rights shall be reinstated, and Landlord shall again be obligated to comply with the provisions of this Section.

 

	
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EXHIBIT D

 

WELLS FARGO BANK DRAFT SNDA AGREEMENT

 

SUBORDINATION AGREEMENT, ACKNOWLEDGMENT OF LEASE ASSIGNMENT, ESTOPPEL, ATTORNMENT AND NON-DISTURBANCE AGREEMENT

(Lease to Security Instrument)

 

	
NOTICE:
	
THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

 

THIS SUBORDINATION AGREEMENT, ACKNOWLEDGMENT OF LEASE ASSIGNMENT, ESTOPPEL, ATTORNMENT AND NON-DISTURBANCE AGREEMENT ("Agreement") is made _________________, 2017 by and between DIAMOND MARINA LLC, a California limited liability company, and DIAMOND MARINA ii LLC, a California limited liability company, owner(s) of the real property hereinafter described (collectively, "Mortgagor"), AIMMUNE THERAPEUTICS, INC., ("Tenant") and Wells Fargo Bank, National Association (collectively with its successors or assigns, "Lender").

 

 

R E C I T A L S

 

	
A.
	
Pursuant to the terms and provisions of a lease dated February 23, 2015, as amended by that certain First Amendment dated August 26, 2015 and that certain Second Amendment dated June 27, 2017 (as amended, the "Lease"), Mortgagor granted to Tenant a leasehold estate in and to a portion of the property described on Exhibit A attached hereto and incorporated herein by this reference (which property, together with all improvements now or hereafter located on the property, is defined as the "Property"). 

 

	
B.
	
Mortgagor has executed that certain deed of trust dated July 13, 2010, to American Securities Company, as Trustee, in favor of Lender, as Beneficiary, and recorded on July 16, 2010, as Instrument Number 2010-078058, in the Official Records of San Mateo County, California ("Security Instrument") securing, among other things, that certain Promissory Note Secured by Deed of Trust dated July 13, 2010 ("Note") in the principal sum of TWENTY-FOUR MILLION and NO/100THS DOLLARS ($24,000,000.00), in favor of Lender ("Loan").  

 

	
C.
	
Mortgagor and Tenant have agreed to the subordination, attornment and other agreements herein in favor of Lender.

 

 

	
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NOW THEREFORE, for valuable consideration and to induce Lender to make the Loan, Mortgagor and Tenant hereby agree for the benefit of Lender as follows:

 

	
1.
	
SUBORDINATION.  Mortgagor and Tenant hereby agree that:

 

	
 
	
1.1
	
Prior Lien.  The Security Instrument securing the Note in favor of Lender, and any modifications, renewals or extensions thereof (including, without limitation, any modifications, renewals or extensions with respect to any additional advances made subject to the Security Instrument), shall unconditionally be and at all times remain a lien on the Property prior and superior to the Lease [and the Option To Purchase];

 

	
 
	
1.2
	
Subordination.  Lender would not make the Loan without this agreement to subordinate; and

 

	
 
	
1.3
	
Whole Agreement.  This Agreement shall be the whole agreement and only agreement with regard to the subordination of the Lease [and the Option To Purchase] to the lien of the Security Instrument and shall supersede and cancel, but only insofar as would affect the priority between the Security Instrument and the Lease [and the Option To Purchase], any prior agreements as to such subordination, including, without limitation, those provisions, if any, contained in the Lease which provide for the subordination of the Lease [and the Option To Purchase] to a deed or deeds of trust or to a mortgage or mortgages. 

 

AND FURTHER, Tenant individually declares, agrees and acknowledges for the benefit of Lender, that:

 

	
 
	
1.4
	
Use of Proceeds.  Lender, in making disbursements pursuant to the Note, the Security Instrument or any loan agreements with respect to the Property, is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat this agreement to subordinate in whole or in part; and

 

	
 
	
1.5
	
Waiver, Relinquishment and Subordination.  Tenant intentionally and unconditionally waives, relinquishes and subordinates all of Tenant's right, title and interest in and to the Property to the lien of the Security Instrument and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination, specific loans and advances are being and will be made by Lender and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination.

 

 

	
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2.
	
ASSIGNMENT.  Tenant acknowledges and consents to the assignment of the Lease by Mortgagor in favor of Lender.

 

	
3.
	
ESTOPPEL.  Tenant acknowledges and represents that:

 

	
 
	
3.1
	
Entire Agreement.  The Lease constitutes the entire agreement between Mortgagor and Tenant with respect to the Property and Tenant claims no rights with respect to the Property other than as set forth in the Lease; 

 

	
 
	
3.2
	
No Prepaid Rent.  No deposits or prepayments of rent have been made in connection with the Lease, except as follows (if none, state "None"):  None;

 

	
 
	
3.3
	
No Default.  To Tenant's knowledge without duty of inquiry, as of the date hereof:  (i) there exists no breach, default, or event or condition which, with the giving of notice or the passage of time or both, would constitute a breach or default under the Lease; and (ii) there are no existing claims, defenses or offsets against rental due or to become due under the Lease;

 

	
 
	
3.4
	
Lease Effective.  The Lease has been duly executed and delivered by Tenant and, subject to the terms and conditions thereof, the Lease is in full force and effect, the obligations of Tenant thereunder are valid and binding and there have been no further amendments, modifications or additions to the Lease, written or oral; and

 

	
 
	
3.5
	
No Broker Liens.  Neither Tenant nor Mortgagor has incurred any fee or commission with any real estate broker which would give rise to any lien right under state or local law, except as follows (if none, state "None"):  Commissions to the brokers identified in the Second Amendment payable by Mortgagor.

 

	
4.
	
ADDITIONAL AGREEMENTS.  Tenant covenants and agrees that, during all such times as Lender is the Beneficiary under the Security Instrument:

 

	
 
	
4.1
	
Modification, Termination and Cancellation.  Except  as provided for in the Lease, Tenant will not consent to any modification, amendment, termination or cancellation of the Lease (in whole or in part) without Lender's prior written consent and will not make any payment to Mortgagor in consideration of any modification, termination or cancellation of the Lease (in whole or in part) without Lender's prior written consent;

 

	
 
	
4.2
	
Notice of Default.  Tenant will notify Lender in writing concurrently with any notice given to Mortgagor of any default by Mortgagor under the Lease, and Tenant agrees that Lender has the right (but not the obligation) to cure any breach or default specified in such notice within the time periods set forth below and Tenant will not declare a default of the Lease, as to Lender, if Lender cures such default within fifteen (15) days from and after the 

 

	
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expiration of the time period provided in the Lease for the cure thereof by Mortgagor ; provided, however, that if such default cannot with diligence be cured by Lender within such fifteen (15) day period, the commencement of action by Lender within such fifteen (15) day period to remedy the same shall be deemed sufficient so long as Lender pursues such cure with diligence;

 

	
 
	
4.3
	
No Advance Rents.  Tenant will make no payments or prepayments of rent more than one (1) month in advance of the time when the same become due under the Lease;

 

	
 
	
4.4
	
Assignment of Rents. Upon receipt by Tenant of written notice from Lender that Lender has elected to terminate the license granted to Mortgagor to collect rents, as provided in the Security Instrument, and directing the payment of rents by Tenant to Lender, Tenant shall comply with such direction to pay and shall not be required to determine whether Mortgagor is in default under the Loan and/or the Security Instrument.

 

	
 
	
4.5
	
Insurance and Condemnation Proceeds.  In the event there is any conflict between the terms in the Security Instrument and the Lease regarding the use of insurance proceeds or condemnation proceeds with respect to the Property, the provisions of the Security Instrument shall control.

 

	
5.
	
ATTORNMENT.  In the event of a foreclosure under the Security Instrument, Tenant agrees for the benefit of Lender (including for this purpose any transferee of Lender or any transferee of Mortgagor's title in and to the Property by Lender's exercise of the remedy of sale by foreclosure under the Security Instrument) as follows:

 

	
 
	
5.1
	
Payment of Rent.  Tenant shall pay to Lender all rental payments required to be made by Tenant pursuant to the terms of the Lease for the duration of the term of the Lease;

 

	
 
	
5.2
	
Continuation of Performance.  Tenant shall be bound to Lender in accordance with all of the provisions of the Lease for the balance of the term thereof, and Tenant hereby attorns to Lender as its landlord, such attornment to be effective and self-operative without the execution of any further instrument immediately upon Lender succeeding to Mortgagor's interest in the Lease and giving written notice thereof to Tenant;

 

	
 
	
5.3
	
No Offset.  Lender shall not be liable for, nor subject to, any offsets or defenses which Tenant may have by reason of any act or omission of Mortgagor under the Lease, nor for the return of any sums which Tenant may have paid to Mortgagor under the Lease as and for security deposits, advance rentals or otherwise, except to the extent that such sums are actually delivered by Mortgagor to Lender; and

 

 

	
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5.4
	
Subsequent Transfer.  If Lender, by succeeding to the interest of Mortgagor under the Lease, should become obligated to perform the covenants of Mortgagor thereunder, then, upon any further transfer of Mortgagor's interest by Lender, all of such obligations shall terminate as to Lender.

 

	
 
	
5.5
	
Limitation on Lender’s Liability.  Tenant agrees to look solely to Lender’s interest in the Property and the rent, income or proceeds derived therefrom for the recovery of any judgment against Lender, and in no event shall Lender or any of its affiliates, officers, directors, shareholders, partners, agents, representatives or employees ever be personally liable for any such obligation, liability or judgment.

 

	
 
	
5.6
	
No Representation, Warranties or Indemnities.  Lender shall not be liable with respect to any representations, warranties or indemnities from Mortgagor, whether pursuant to the Lease or otherwise, including, but not limited to, any representation, warranty or indemnity related to the use of the Property, compliance with zoning, landlord’s title, landlord’s authority, habitability or fitness for purposes or commercial suitability, or hazardous wastes, hazardous substances, toxic materials or similar phraseology relating to the environmental condition of the Property or any portion thereof.

 

	
6.
	
NON-DISTURBANCE.  In the event of a foreclosure under the Security Instrument, so long as there shall then exist no breach, default, or event of default beyond any applicable notice and cure period on the part of Tenant under the Lease, Lender agrees for itself and its successors and assigns that the leasehold interest of Tenant under the Lease shall not be extinguished or terminated by reason of such foreclosure, but rather the Lease shall continue in full force and effect and Lender shall recognize and accept Tenant as tenant under the Lease subject to the terms and provisions of the Lease except as modified by this Agreement; provided, however, that Tenant and Lender agree that the following provisions of the Lease (if any) shall not be binding on Lender nor its successors and assigns:  any option to purchase with respect to the Property; and any right of first refusal with respect to the Property.

 

	
7.
	
MISCELLANEOUS. 

 

	
 
	
7.1
	
Remedies Cumulative.  All rights of Lender herein to collect rents on behalf of Mortgagor under the Lease are cumulative and shall be in addition to any and all other rights and remedies provided by law and by other agreements between Lender and Mortgagor or others.

 

	
 
	
7.2
	
NOTICES.  All notices, demands, or other communications under this Agreement and the other Loan Documents shall be in writing and shall be delivered to the appropriate party at the address set forth below (subject to change from time to time by written notice to all other parties to this Agreement). All notices, demands or other communications shall be considered as properly given if delivered personally or sent by first class 

 

	
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United States Postal Service mail, postage prepaid, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid, except that notice of Default may be sent by certified mail, return receipt requested, charges prepaid.  Notices so sent shall be effective three (3) Business Days after mailing, if mailed by first class mail, and otherwise upon delivery or refusal; provided, however, that non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication.  For purposes of notice, the address of the parties shall be:

 

	
 
	
Mortgagor:
	
Diamond Marina LLC and Diamond Marina II LLC

2000 Sierra Point Parkway, Suite 100

Brisbane,  CA  94005

 

Attention:  Andrew Diamond

	
 
	
Tenant:
	
Aimmune Therapeutics, Inc.

8000 Marina Boulevard

Suite 200

Brisbane, CA 94005-1884

 

Attention:  General Counsel

	
 
	
Lender:
	
Wells Fargo Bank, National Association

CRE San Francisco (AU #02034)

420 Montgomery Street, 6th Floor

San Francisco,  CA  94104

 

Attention:  Tim Mahoney

 

Loan #:  1002751

 

	
 
	
With a copy to:
	
Wells Fargo Bank, National Association

Minneapolis Loan Center

600 South 4th Street, 9th Floor

Minneapolis,  MN  55415

 

Attention:  Kathy Perkins

 

 

Any party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving of thirty (30) days’ notice to the other party in the manner set forth hereinabove.  

 

	
 
	
7.3
	
Heirs, Successors and Assigns.  Except as otherwise expressly provided under the terms and conditions herein, the terms of this Agreement shall bind and inure to the benefit of the heirs, executors, administrators, nominees, successors and assigns of the parties hereto.

 

 

	
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7.4
	
Headings.  All article, section or other headings appearing in this Agreement are for convenience of reference only and shall be disregarded in construing this Agreement.

 

	
 
	
7.5
	
Counterparts.  To facilitate execution, this document may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.  Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. 

 

	
 
	
7.6
	
Exhibits, Schedules and Riders.  All exhibits, schedules, riders and other items attached hereto are incorporated into this Agreement by such attachment for all purposes.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.

 

IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT HERETO.

 

			
	
"MORTGAGOR"

	
 
	
 
	
 

	
DIAMOND MARINA LLC,

	
A California limited liability company

	
 
	
 
	
 

	
By:
	
 
	
/s/ STEPHEN DIAMOND

	
Name:
	
 
	
Stephen P. Diamond

	
Title:
	
 
	
Manager

	
 
	
 
	
 

 

	
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"MORTGAGOR"

	
 
	
 
	
 

	
DIAMOND MARINA II LLC,

	
A California limited liability company

	
 
	
 
	
 

	
By:
	
 
	
/s/ ANDREW DIAMOND

	
Name:
	
 
	
Andrew Diamond

	
Title:
	
 
	
Manager

	
 
	
 
	
 

	
"TENANT"

	
 
	
 
	
 

	
AIMMUNE THERAPEUTICS, INC.,

	
A Delaware corporation

	
 
	
 
	
 

	
By:
	
 
	
/s/ ERIC BJERKHOLT

	
Name:
	
 
	
Eric Bjerkholt

	
Title:
	
 
	
CFO

	
 
	
 
	
 

	
"LENDER"

	
 
	
 
	
 

	
WELLS FARGO BANK, N.A.

	
 
	
 
	
 

	
BY:
	
 
	
 

	
Name:
	
 
	
D. Tim Mahoney

	
Title:
	
 
	
Senior Vice President

	
 
	
 
	
 

	
 
	
 
	
 

 

[IF DOCUMENT TO BE RECORDED, ALL SIGNATURES MUST BE ACKNOWLEDGED - ADD APPROPRIATE NOTARY ACKNOWLEDGEMENT]

 

	
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EXHIBIT A - DESCRIPTION OF PROPERTY

 

LEGAL DESCRIPTION

 

Real property in the City of Brisbane, County of San Mateo, State of California, described as follows:

 

PARCEL I:

 

LOT 3, AS SHOWN ON THAT CERTAIN MAP ENTITLED “FINAL MAP”, CITY OF BRISBANE, SAN MATEO COUNTY, CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEO COUNTY, STATE OF CALIFORNIA, ON FEBRUARY 27, 1987 IN BOOK 58 OF PARCEL MAPS AT PAGE(S) 79, 80, 81 AND 82.

 

EXCEPTING ALL MINERALS AND MINERAL RIGHTS OF EVERY KIND AND CHARACTER NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED, INCLUDING WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, OIL AND GAS AND RIGHTS THERETO, TOGETHER WITH THE SOLE, EXCLUSIVE, AND PERPETUAL RIGHT TO EXPLORE FOR, REMOVE AND DISPOSE OF SAID MINERALS BY ANY MEANS OR METHODS SUITABLE TO THE GRANTOR, ITS SUCCESSORS AND ASSIGNS, INCLUDING LATERAL OR SLANT DRILLING, BUT WITHOUT ENTERING UPON OR USING THE SURFACE OF THE LANDS HEREBY CONVEYED, AND IN SUCH MANNER AS NOT TO DAMAGE THE SURFACE OF SAID LANDS OR ANY BUILDING NOR THEREON OR HEREAFTER ERECTED THEREON OR THE SUBSTRUCTURE OF ANY SUCH BUILDING, OR TO INTERFERE WITH THE USE THEREOF BY THE GRANTEE, ITS SUCCESSORS OR ASSIGNS, AS EXCEPTED IN THE FOLLOWING DEEDS TO UTAH CONSTRUCTING & MINING CO., A CORPORATION, PREDECESSOR IN INTEREST TO THE VESTEE HEREIN:

 

	
 
	
A.
	
FROM MAUDE LOUISE PHILLIPS, RECORDED SEPTEMBER 14, 1959, IN BOOK 3670, OF OFFICIAL RECORDS AT PAGE 624, DOCUMENT NO. 86272-R.

 

	
 
	
B.
	
FROM JOHN F. WILLCOX, ALSO KNOWN AS JOHN FREDERICK WILLCOX, RECORDED SEPTEMBER 14, 1959, IN BOOK 3670 OF OFFICIAL RECORDS AT PAGE 625, DOCUMENT NO. 86273-R.

 

	
 
	
C.
	
FROM MARITA CLARKE, RECORDED SEPTEMBER 14, 1959 IN BOOK 3670 OF OFFICIAL RECORDS AT PAGE 626, DOCUMENT NO. 86274-R.

 

 

	
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PARCEL II:

 

NON-EXCLUSIVE EASEMENTS FOR ROADWAYS, WALKWAYS, INGRESS AND EGRESS, PARKING OF MOTOR VEHCILES, LOADING AND UNLOADING OF COMMERICAL AND OTHER VEHICLES AND FOR DRIVEWAY PURPOSES OVER THE COMMON AREA PORTION OF LOT 2 AS SHOWN ON THAT CERTAIN MAP ENTITLED “FINAL MAP” FILED FEBRUARY 27, 1987, IN BOOK 58 OF PARCEL MAPS, PAGES 79 THROUGH 82, SAN MATEO COUNTY RECORDS, AS DEFINED AND CREATED IN THE GRANT OF EASEMENT AND MAINTENANCE AGREEMENT, DATED APRIL 29, 1988 BY AND BETWEEN SIERRA POINT ASSOCIATES TWO, A CALIFORNINA GENERAL PARTNERSHIP AND HITACHI AMERICA LTD., A NEW YORK CORPORATION, RECORDED APRIL 29, 1988 UNDER RECORDER’S SERIAL NO. 88052436, OFFICIAL RECORDS OF SAN MATEO COUNTY.

 

SAID EASEMENT IS APPURTENANT TO AND FOR THE BENEFIT OF PARCEL I ABOVE.

 

 

First American Title Insurance Company

 

 

	
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