Document:

Exhibit

 

Exhibit 10.1

AMENDMENT NO. 2 TO CREDIT AGREEMENT

AMENDMENT NO. 2 dated as of November 12, 2015 (the “Amendment”) to the Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement dated as of September 27, 2012 (as amended, supplemented or otherwise modified, renewed or replaced from time to time, the “Credit Agreement”) among (i) LIONS GATE ENTERTAINMENT CORP, a British Columbia corporation as Borrower (the “Borrower”), (ii) the GUARANTORS referred to herein, (iii) the LENDERS referred to therein (each, a “Lender,” and collectively, the “Lenders”) and (iv) JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and as Issuing Bank. 
INTRODUCTORY STATEMENT
The Borrower has requested additional flexibility to make Investments in Unrestricted Subsidiaries beyond those currently permitted, and the Lenders have agreed to provide such additional flexibility, subject to the terms hereof. 
Therefore, the parties hereto hereby agree as follows:
1.Defined Terms.  All terms used but not otherwise defined herein have the meanings assigned to them in the Credit Agreement.
2.    Amendments to Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 3 below, the Credit Agreement is hereby amended as of the Effective Date (as defined below) as follows:
(a)    Section 1 of the Credit Agreement is hereby amended to add the following defined terms in alphabetical order therein:
“Guaranty Valuation Notice” means, with respect to any Ratio Guaranty, a notice delivered to the Administrative Agent by the Borrower, which notice shall (a) set forth the amount of such Guaranty as of the date of such notice, as determined in accordance with the definition of the term “Guaranty” (the “Ratio Guaranty Amount”) and (b) include a calculation of the “Incurrence Secured Debt Ratio”, on a pro forma basis giving effect to the incurrence of the applicable Ratio Guaranty.  
From time to time, if the Borrower determines that the Ratio Guaranty Amount of any Ratio Guaranty has been reduced, the Borrower may deliver to the Administrative Agent an updated Guaranty Valuation Notice with respect to such Ratio Guaranty.   Additionally, if any Ratio Guaranty is outstanding, an updated Guaranty Valuation Notice, with current calculations of the aggregate Ratio Guaranty Amounts for all outstanding and proposed Ratio Guaranties, shall be 

        

 

delivered in connection with each measurement of the Incurrence Secured Debt Ratio as contemplated by Sections 6.3(xi), 6.4(xxix) and 6.5(xiv) hereof.
“Incurrence Secured Debt Ratio” shall mean, at any time, a ratio determined in the same manner as the Secured Debt Ratio would be as such time, except that to the extent any Ratio Guaranty is outstanding at such time, the aggregate of the current Ratio Guaranty Amounts for all outstanding and proposed Ratio Guaranties shall be added to the denominator of such ratio (to the extent not duplicative of any other amounts contained in the denominator of Secured Debt Ratio).
“Ratio Guaranty” means any Guaranty incurred pursuant to Section 6.3(xi)(B), provided that at such time as the primary obligor of the obligation subject to such Guaranty becomes a Credit Party, such Guaranty shall automatically cease to be a Ratio Guaranty for all purposes of this Credit Agreement and shall be deemed to have been incurred under Section 6.3(v).
“Ratio Guaranty Amount” has the meaning set forth in the definition of “Guaranty Valuation Notice”. 
(b)    Section 1 of the Credit Agreement is further amended by amending the portion of the definition of “Unrestricted Subsidiary” prior to the proviso appearing therein by adding the new language shown in below in italics:
“‘Unrestricted Subsidiary’ shall mean each Subsidiary of LGEC listed in Schedule 3.7(d) and any other Subsidiary of LGEC which is (i) except for the Subsidiary acquisition described to the Administrative Agent prior to Amendment No. 2 to this Credit Agreement, acquired without the use of any of the proceeds from the Loans or the issuance of any other Indebtedness and  (ii) designated by the Borrower as an Unrestricted Subsidiary in a written notice to the Administrative Agent; ...”
(c)    Section 6.3 of the Credit Agreement is hereby amended by replacing the word “one” in clause (v) and replacing it with the word “any.”
(d)    Clause 6.3 of the Credit Agreement is hereby further amended by replacing the “and” appearing between clauses (ix) and (x) thereof with a semicolon and inserting the following new clause (xi) at the  end thereof:
“(xi) Guaranties of obligations of an Unrestricted Subsidiary or joint venture that either (A) were disclosed by the Borrower to the Administrative Agent prior to the execution of Amendment No. 2 dated as of November 12 to this Agreement (“Amendment No. 2”) or (B) are disclosed by the Borrower to the Administrative Agent after the execution of Amendment No. 2, provided that, in the case of Clause (B), as a condition to providing such a Guaranty, the Borrower shall have delivered to the Administrative Agent (1) a Guaranty Valuation Notice and (2) 

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such Guaranty Valuation Notice shall have demonstrated that the “Incurrence Secured Debt Ratio” on a pro forma basis giving effect to the incurrence of such Guaranty will be at least 1.5:1.0, and provided, further, that any payment made by any Credit Party on account of any Guaranty incurred pursuant to this clause (xi) must (unless the primary obligor has since become a Credit Party) at the time of payment constitute a permitted Investment under Section 6.4 hereof (provided that, for the avoidance of doubt, at the time of any payment of a Guaranty incurred pursuant to the foregoing clause (B), such Guaranty shall not be included in the denominator of the “Incurrence Secured Debt Ratio” for purposes of the determination thereof except to the extent that such Guaranty remains in effect after such payment).” 
(e)    Clause (vii) of Section 6.4 of the Credit Agreement is hereby amended by inserting the words “(other than Section 6.3(xi))” at the end of the existing text. 
(f)    Section 6.4 of the Credit Agreement is hereby further amended by replacing the “and” appearing between clauses (xxii) and (xxiii) thereof with a comma and inserting the following new clause (xxiv) at the end thereof:
“(xxiv) other Investments (including the incurrence of Guaranties, but only to the extent permitted by Section 6.3(xi) hereof), provided that in the case of this clause (xxiv): (a) the proceeds of such Investments shall be used to finance ultimate investments in Persons engaged in lines of business consistent with Section 6.12 hereof; (b) no Default or Event of Default shall be continuing after giving effect on a pro forma basis to such Investment; (c) on a pro forma basis after giving effect to such Investment, the Incurrence Secured Debt Ratio shall be at least 1.5:1.0; and (d) any payment made on account of any Guaranty of any Unrestricted Subsidiary or joint venture obligations incurred under this clause (xxiv) must (unless the primary obligor has since become a Credit Party) at the time of payment be permitted under this Section 6.4 (provided that, for the avoidance of doubt, at the time of any payment of a Guaranty incurred pursuant to Section 6.3(xi)(B)), such Guaranty shall not be included in the denominator of the “Incurrence Secured Debt Ratio” for purposes of the determination thereof except to the extent that such Guaranty remains in effect after such payment).”
(g)    Section 6.5 of the Credit Agreement is hereby amended by replacing the “and” appearing between clauses (xii) and (xiii) thereof with a comma and inserting the following new clause (xiv) at the end thereof:
“(xiv) other Restricted Payments, provided that in the case of this clause (xiv): (a) no Default or Event of Default shall be continuing after giving effect on a pro forma basis to such Restricted Payment; and (b) on a pro forma basis after giving effect to such Restricted Payment, the Incurrence Secured Debt Ratio shall be at least 1.75:1.0.” 

3

 

(h)    Section 6.10 of the Credit Agreement is hereby replaced in its entirety with the following:
“SECTION 6.10.  Limitations on Capital Expenditures.  Make, or incur any obligation to make, Capital Expenditures (excluding expenditures to produce or acquire items of Product or Capital Expenditures of a potential merger or acquisition target made prior to such acquisition or merger) for all Credit Parties and their Subsidiaries in excess of (x) U.S.$20,000,000 for any fiscal year which to the extent unused may be carried over to subsequent fiscal years and (y) U.S.$60,000,000 in the aggregate from and after the Closing Date.” 
(i)    Section 6.11 of the Credit Agreement is hereby amended by replacing the “and” appearing between clauses (iv) and (v) thereof with a comma and by inserting the following new clause (vi) at the  end thereof:
“(vi) the provision of Guaranties of obligations of Unrestricted Subsidiaries and joint ventures to the extent permitted by Section 6.3(xi) hereof.” 
3.    Conditions to Effectiveness.  The provisions of Section 2 of this Amendment shall not become effective until the date upon which all of the following conditions precedent have been satisfied (such date, the “Effective Date”):
(a)    the Administrative Agent shall have received counterparts of this Amendment which, when taken together, bear the signatures of the Borrower, each of the Guarantors and Lenders constituting the Required Lenders; and
(b)    the payment of all fees and expenses (including, without limitation, fees and disbursements of counsel and consultants retained by the Administrative Agent) due and payable by any Credit Party to the Administrative Agent and/or the Lenders pursuant to the Credit Agreement or any other Fundamental Document.
4.    Reaffirmation of Fundamental Documents.  Each of the Credit Parties hereby: (i) acknowledges that it expects to receive substantial direct and indirect benefits as a result of this Amendment and the transactions contemplated hereby, (ii) consents to this Amendment and the transactions contemplated hereby, (iii) acknowledges and reaffirms all of its obligations and undertakings under each of the Fundamental Documents, including, without limitation, its guarantees, pledges and grants of security interests thereunder and (iv) acknowledges and agrees that notwithstanding this Amendment and the effectiveness of the transactions contemplated hereby, each of the Fundamental Documents and such guarantees, pledges and grants of security interests is not impaired or affected in any manner whatsoever and shall remain in full force and effect in accordance with the terms thereof to secure all of the Obligations (as defined in the Credit Agreement). 
5.    Representations and Warranties.  Each Credit Party represents and warrants that:

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(a)after giving effect to this Amendment, the representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as of the date hereof as if such representations and warranties had been made on and as of the date hereof (except to the extent that any such representations and warranties specifically relate to an earlier date); and
(b)after giving effect to this Amendment, no Default or Event of Default will have occurred and be continuing on and as of the date hereof.
6.    Fundamental Document.  The parties acknowledge that this Amendment is a Fundamental Document.
7.    Full Force and Effect.  Except as expressly amended hereby, the Credit Agreement (as previously amended) shall continue in full force and effect in accordance with the provisions thereof on the date hereof.  As used in the Credit Agreement, the terms “Agreement,” “this Agreement,” “this Credit Agreement,” “herein,” “hereafter,” “hereto,” “hereof” and words of similar import shall mean, unless the context otherwise requires, the Credit Agreement as amended by this Amendment.  This Amendment shall not be construed as extending to any other matter, similar or dissimilar, or entitling the Credit Parties to any future amendments regarding similar matters or otherwise.
8.    APPLICABLE LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
9.    Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument.
10.    Expenses.  The Borrowers agree to pay all out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, enforcement, waiver or modification, execution and delivery of this Amendment, including, but not limited to, the reasonable fees and disbursements of counsel for the Administrative Agent. 
11.    Headings.  The headings of this Amendment are for the purposes of reference only and shall not affect the construction of this Amendment.

[Signatures Begin on Next Page]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.

LIONS GATE ENTERTAINMENT INC.
By: /s/ Wayne Levin___________________      
Name: Wayne Levin 
Title: Vice President and General Counsel
LIONS GATE ENTERTAINMENT CORP.
By: /s/ Wayne Levin___________________      
Name: Wayne Levin 
Title: General Counsel and
          Chief Strategic Officer

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

GUARANTORS:
100 PLUS PRODUCTIONS, INC.
ABX PRODUCTIONS, INC.
AMNESIA PRODUCTIONS, LLC
ANGER PRODUCTIONS, INC.
ARTISAN ENTERTAINMENT INC.
ARTISAN HOME ENTERTAINMENT INC.
ARTISAN PICTURES LLC
ARTISAN RELEASING LLC
ATOM PRODUCTIONS, INC. 
AWAKEN PRODUCTIONS CORP.
AWAKEN PRODUCTIONS, INC.
BACKSEAT PRODUCTIONS, LLC
BASTER PRODUCTIONS, LLC
BHF PRODUCTIONS, INC.
BLAIR WITCH FILMS, LLC
BLUE MOUNTAIN STATE PRODUCTIONS
CORP.
BOSS KANE PRODUCTIONS, INC.
C4 PRODUCTIONS, INC.
CALLER PRODUCTIONS, INC.
CASUAL PRODUCTIONS, INC.
CATX ACTION1 12 PRODUCTIONS, INC.
CATX CERTAIN SLANT 12 PRODUCTIONS,
INC.
CATX EXORCISM 12 PRODUCTIONS, INC.
CATX REAWAKENING 12 PRODUCTIONS,
INC.
CATX RICKY 12 PRODUCTIONS, INC.
CATX TAPE4 12 PRODUCTIONS, INC.
CATX TIME AFTER TIME 12 PRODUCTIONS,
INC.
CATX TWO EYES 12 PRODUCTIONS, INC.
CATX WEE 12 PRODUCTIONS, INC.
CATX XOXO 12 PRODUCTIONS, INC.
CBLG PRODUCTIONS, LLC
CHAINS PRODUCTIONS, INC.
CONDEMNED PRODUCTIONS, INC.
COUNTRYMAN PRODUCTIONS, LLC
CRASH TELEVISION PRODUCTIONS, INC.
DANCING ELK PRODUCTIONS, LLC
DD2 ACQUISITION CORP.
DEAD ZONE PRODUCTION CORP.
DEBMAR STUDIOS, INC.

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

DEBMAR/MERCURY (WW) PRODUCTIONS
LLC
DEBMAR/MERCURY, LLC
DELISH PROJECTS, LLC
DELISH TELEVISION DEVELOPMENT, LLC
DHW PRODUCTIONS, LLC
DIABLE PRODUCTIONS, INC.
DJM SERVICES, INC.
DODGE PRODUCTIONS LLC
DONOR PRODUCTIONS, INC.
DRESDEN FILES PRODUCTIONS CORP.
DRESDEN FILES PRODUCTIONS I CORP.
ENTERTAINMENT CAPITAL HOLDINGS 
S.À.R.L.
EXTERIOR PRODUCTIONS, LLC
FILM HOLDINGS CO.
FIRST PICK PRODUCTIONS, INC.
FIRST PICK PRODUCTIONS, LLC
FRIENDS FINANCING, INC.
GC FILMS, INC.
GGX PRODUCTIONS, INC.
GHS PRODUCTIONS, LLC
GOOD EVEL PRODUCTIONS, INC.
GRAVES PRODUCTIONS, INC.
GRINDSTONE ENTERTAINMENT GROUP,
LLC
GUILT PRODUCTIONS, INC.
HGMJ PRODUCTIONS CANADA INC./LES PRODUCTIONS HGMJ CANADA INC.
HIGHER POST LLC
HORSEMEN PRODUCTIONS, LLC
HOUDINI PRODUCTIONS, INC.
INVISIBLE CASTING INC.
IV PRODUCTIONS, INC.
IV3D PRODUCTIONS CORP.
IWC PRODUCTIONS, LLC
JESSABELLE PRODUCTIONS, INC.
JUST REWARDS PRODUCTIONS, INC. 
JV1 DELISH, LLC
KILL PIT PRODUCTIONS INC.
LADY PRISON PRODUCTIONS, INC.
LAMB PRODUCTIONS, INC.
LANDSCAPE ENTERTAINMENT CORP.
LAST PRODUCTIONS, INC.
LG HORROR CHANNEL HOLDINGS, LLC

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

LGAC 1, LLC
LGAC 3, LLC
LGAC INTERNATIONAL LLC
LIONS GATE ENTERTAINMENT INC.
LIONS GATE FILMS INC.
LIONS GATE INDIA INC.
LIONS GATE INTERNATIONAL MOTION PICTURES S.À.R.L.
LIONS GATE INTERNATIONAL SALES, LLC
LIONS GATE INTERNATIONAL (UK) LIMITED
LIONS GATE MANDATE FINANCING
VEHICLE INC.
LIONS GATE MUSIC CORP.
LIONS GATE MUSIC PUBLISHING LLC
LIONS GATE MUSIC, INC.
LIONS GATE ONLINE SHOP INC.
LIONS GATE PENNSYLVANIA, INC.
LIONS GATE RECORDS, INC.
LIONS GATE SPIRIT HOLDINGS, LLC
LIONS GATE TELEVISION DEVELOPMENT
LLC
LIONS GATE TELEVISION INC.
LIONS GATE TELEVISION INTERNATIONAL
— LATIN AMERICA, INC.
LIONS GATE X PRODUCTIONS CORP.
LIONS GATE X PRODUCTIONS, LLC
LOG PRODUCTIONS, LLC
LOL PRODUCTIONS, LLC
LOVE LESSONS PRODUCTIONS, INC.
LUCKY 7 PRODUCTIONS CORP.
LUDUS PRODUCTIONS, INC.
LWH PRODUCTIONS, LLC
MANDATE FILMS, LLC
MANDATE PICTURES, LLC
MANIFEST ENTERTAINMENT, LLC
MERCURY PRODUCTIONS, LLC
MK ANIMATED, LLC
MORT PRODUCTIONS US, INC.
MOTHER PRODUCTIONS CORP.
MQP, LLC
NEXT PRODUCTION INC.
NGC FILMS, INC.
NR PRODUCTIONS, INC.
NURSE PRODUCTIONS INC.
NYSM2 PRODUCTIONS LIMITED

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

OLD HICKORY PRODUCTIONS, INC.
PEARL RIVER HOLDINGS CORP.
PEEPLES PRODUCTIONS, INC.
PGH PRODUCTIONS, INC.
PLAYLIST, LLC
POWER MONGERING DESPOT, INC.
PRACTICE PRODUCTIONS, LLC
PROFILER PRODUCTIONS CORP.
PSYCHO PRODUCTIONS SERVICES CORP.
PUCK PRODUCTIONS, LLC
PWG PRODUCTIONS, INC.
PX1 PRODUCTIONS CORP.
PX1 PRODUCTIONS, INC.
R & B PRODUCTIONS, INC.
RABBIT PRODUCTIONS, INC.
RG PRODUCTIONS, INC.
SAINT PRODUCTIONS, INC.
SCREENING ROOM, INC.
SDI PRODUCTIONS, INC.
SEASHORE GER 1, INC.
SEASHORE GER 2, INC.
SEASHORE GER 3, INC.
SELP, LLC
SHIRT PRODUCTIONS CANADA INC.
SHK PRODUCTIONS, LLC
SILENT DEVELOPMENT CORP.
SKILLPA PRODUCTIONS, LLC
SOUTH SHORE PRODUCTIONS, INC.
SPNBK PRODUCTIONS, INC.
SS3 PRODUCTIONS, INC.
STEP UP 5 PRODUCTIONS CANADA, INC.
SU5 PRODUCTIONS, INC.
SUMMIT DISTRIBUTION, LLC
SUMMIT ENTERTAINMENT DEVELOPMENT
SERVICES
SUMMIT ENTERTAINMENT, LLC
SUMMIT GUARANTY SERVICES, LLC
SUMMIT INTERNATIONAL DISTRIBUTION
INC.
SUMMIT PRODUCTIONS, LLC
SUMMIT SIGNATURE, LLC
SWEAT PRODUCTIONS, INC.
TCT PRODUCTIONS, INC.
TERM PRODUCTIONS, INC.
TERRESTRIAL PRODUCTIONS CORP.

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

TINY HORSE PRODUCTIONS, INC.
UNZ PRODUCTIONS, INC.
U.R.O.K. PRODUCTIONS, INC.
VERDICT PRODUCTIONS, INC.
VESTRON INC.
WEEDS PRODUCTIONS INC.
WILDE KINGDOM PRODUCTIONS CORP.
WOMEN IN COMEDY DOCUMENTARY, LLC

By: /s/ Wayne Levin___________________      
Name: Wayne Levin 
Title: Authorized Signatory
                    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

LENDERS:
JPMORGAN CHASE BANK, N.A. 
individually and as Administrative Agent
By:  /s/ Lynn M. Braun_______________      
Name: Lynn M. Braun  
Title: Authorized Signatory
Address:    
Attention:    
Facsimile:          

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

BANK OF AMERICA
By: /s/ Matthew Koenig______________      
Name: Matthew Koenig 
Title: Senior Vice President
Address:    
Attention:    
Facsimile:     

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

BARCLAYS BANK PLC
By: /s/ Daniel Hunter_____________      
Name: Daniel Hunter 
Title: Authorized Signatory
Address:    
Attention:    
Facsimile:     

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

ROYAL BANK OF CANADA
By: /s/ Alfonse Simone______________      
Name: Alfonse Simone 
Title: Authorized Signatory
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

WELLS FARGO BANK, NATIONAL ASSOCIATION
By: /s/ Bryan Milinovich____________      
Name: Bryan Milinovich 
Title: Vice President
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

SUNTRUST BANK
By: /s/ J. Matthew Rowand_________      
Name: J. Matthew Rowand 
Title: Vice President
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

MUFG UNION BANK, N.A. 

By: /s/ Mike Richman_____________      
Name: Mike Richman 
Title: Director
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

UNION BANK, CANDA BRANCH. 

By: /s/ Anne Collins_____________      
Name: Anne Collins 
Title: Director
Address:    
Attention:    
Facsimile:

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

CIT FINANCE LLC 

By: /s/ Pauline Roh____________      
Name: Pauline Roh 
Title: Vice President
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

COMERICA 

By: /s/ Adam Korn  ___________      
Name: Adam Korn 
Title: Vice President
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

FIRST REPUBLIC BANK
By: /s/ Charles Heaphy____________      
Name: Charles Heaphy 
Title: Senior Managing Director
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

 

BANK LEUMI UK 

By: /s/ Patrick Higgins____________      
Name: Patrick Higgins 
Title:
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]

MANUFACTURERS BANK 

By: /s/ Charles Jou____________      
Name: Charles Jou 
Title: Vice President
Address:    
Attention:    
Facsimile:    

[Signature Page to Amendment No. 2 to 
Third Amended and Restated Credit, Security, Guaranty and Pledge Agreement]Exhibit 10.1

 

SECOND AMENDMENT OF LEASE,

 

THIS SECOND AMENDMENT OF LEASE (this “Amendment”) is effective as ofthe 16th day of July, 2015 (the “Effective Date”), by and between DWF IV ONE KENDALL, LLC, a Delaware limited liability company having an address c/o Divco West Real Estate Services, Inc., One Kendall Square, Cambridge, Massachusetts 02139, Attention:  Property Manager (“Landlord”) and CATABASIS PHARMACEUTICALS, INC., a Delaware corporation having a mailing address at One Kendall Square, Building 1400, Suite B14202, Cambridge, Massachusetts 02139 (“Tenant”).

 

BACKGROUND:

 

A.                                    Reference is made to a certain Lease Agreement dated December 17, 2010, by and between RB Kendall Fee, LLC, as landlord, and Tenant, as tenant (the “Original Lease”), demising approximately 14,784 rentable square feet of space on the second (2”a) floor of Building 1400 (the “Existing Premises”) in One Kendall Square, Cambridge, Massachusetts, as amended by (i) a First Amendment of Lease dated as of December 21, 2011 (the “First Amendment”)  and (ii) a Letter dated April 18, 2012 (as so amended, the Original Lease shall be referred to herein as the “Lease”). Capitalized terms used, but not defmed herein, shall have the same meaning as in the Lease.

 

B.                                    Landlord is the successor to RB Kendall Fee, LLC, and Landlord and Tenant are the current holders, respectively, of the landlord’s and tenant’s interests in the Lease.

 

C.                                    The current term of the Lease is scheduled to expire on June 30,2017.

 

D.                                    Landlord and Tenant now desire to amend the Lease to add to the Existing Premises an additional approximately 4,059 rentable square feet of space for office use on the third (3rd) floor of Building 1400, all as more particularly set forth herein.

 

AGREEMENTS:

 

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

 

1.                                      Inclusion of Second Expansion Premises; Second Expansion Premises Term. Effective as of the date that Landlord tenders delivery of the Second Expansion Premises to Tenant (the “Second Expansion Premises Commencement Date”), there shall be added to the Premises under the Lease the approximately 4,059 rentable square feet of space on the third (3rd) floor of Building No. 1400 of the Complex, as more particularly shown on Exhibit 2(Part II) attached hereto as the “Second Expansion Premises” (the “Second Expansion Premises”), which Exhibit 2(Part II) shall be deemed, as of the Second Expansion Premises Commencement Date, to be attached to the Lease as part of Exhibit 2.  Exhibit 2(Part I) hereto shall hereby be deemed to replace Exhibit 2 to the Original Lease and Exhibit I of the First Amendment.  As of the Second Expansion Premises Commencement Date, Exhibit 2(Part I) and Exhibit 2(Part II) shall together form Exhibit 2 under the Lease.

 

 

Accordingly, as of the Second Expansion Premises Commencement Date: the term “Premises” in Exhibit 1, Sheet 1 shall be amended to state:  “An area on the second (2°d) floor of Building No. 1400 (the “Existing Premises”), substantially as shown on Exhibit 2(Part I) attached hereto and an area on the third (3ra) of Building No. 1400 (the “Second Expansion Premises”), as shown on Exhibit 2(Part II) attached hereto.”

 

The Term of the Lease for the Second Expansion Premises shall be the period beginning on the Second Expansion Premises Commencement Date and ending on June 30, 2017 (the “Second Expansion Premises Term”).  Landlord anticipates delivering possession of the Second Expansion Premises to Tenant on the Effective Date; provided, however, that if Landlord, for any reason whatsoever, cannot deliver possession of the Second Expansion Premises to Tenant on the Effective Date, this Amendment shall not be void or voidable, nor shall Landlord be liable for any loss or damage resulting therefrom, but in that event, there shall be no accrual of Yearly Rent (subject to the provisions hereof) with respect to the Second Expansion Premises until Landlord delivers possession of the Second Expansion Premises to Tenant.  Tenant’s inability or failure to take possession of the Second Expansion Premises when  delivery is tendered by Landlord shall not delay the Second Expansion Premises Commencement Date or Tenant’s obligation to pay Yearly Rent with respect thereto.

 

Except for the below-described use of the Second Expansion Premises in Section 3 of this Amendment and as otherwise provided herein and except to the extent inconsistent herewith, all terms and provisions ofthe Lease shall be applicable to Tenant’s leasing of the Second  Expansion Premises.  As of the Second Expansion Premises Commencement Date, the Premises under the Lease shall consist of the Existing Premises and the Second Expansion Premises.

 

2.                                      “As-Is” Condition of Second Expansion Premises.  The Second Expansion Premises shall be leased to Tenant as of, and Landlord shall deliver possession thereof to Tenant on, the Second Expansion Premises Commencement Date in its “as is” condition as of the date of this Amendment (provided that the same shall be in broom clean condition and free of all tenants and/or occupants and their personal property), without any obligation on the part of Landlord to perform any construction therein or to prepare the same for Tenant’s occupancy or otherwise or to pay any allowances therefor.  Article 4 of the Original Lease and Sections 6 and 7 of the First Amendment shall not apply to the Second Expansion Premises.

 

3.                                      Permitted Use of Second Expansion Premises.  Notwithstanding any terms or provisions of the Lease to the contrary, including Exhibit 1 of the Original Lease, Tenant shall only use the Second Expansion Premises for general office purposes and not for any other purposes.

 

4.                                      Payment of Yearly Rent Attributable to Second Expansion Premises.  Throughout the Second Expansion Premises Term (i.e., through June 30, 2017), in addition to all other amounts due and payable by Tenant under the Lease, Tenant shall pay to Landlord monthly installments of Yearly Rent attributable to the Second Expansion Premises as follows and otherwise as set forth in the Yearly Rent payment provisions of the Lease:

 

2

 

	
Period
    	
 
    	
Monthly
    Rent
    	
 
    
	
Second Amendment   Premises Commencement Date -August 31,2015
    	
 
    	
$
    	
0.00
    	
 
    
	
September 1,   2015 – May 31,2016
    	
 
    	
$
    	
14,544.75
    	
 
    
	
June 1,2016   - May31,2017
    	
 
    	
$
    	
14,883.00
    	
 
    
	
June 1,   2017 - June 30, 2017
    	
 
    	
$
    	
15,221.25
    	
 
    

 

5.                                      Operating Expense Sha:re and Tax Share for Expansion Premises.  Effective as of the Second Expansion Premises Commencement Date and continuing for the Second Expansion Premises Term (i.e., through June 30, 2017), Tenant shall make Tax Share and Operating Expense Share payments attributable to the Second Expansion Premises in accordance with the terms and conditions of Article 9 of the Lease, as amended hereby; provided, however, that with respect to such payments for the Second Expansion Premises only, any reference in Article 9, or in any definition used to calculate Tax Share or Operating Share, to:

 

(a) “Tenant’s Proportionate Building Share” shall be deemed to be a reference to 3.14%;

 

(b) “Tenant’s Proportionate Common Share” shall be deemed to be a reference to 0.63%; and

 

(c) “Premises” shall be deemed to be a reference to the Second Expansion Premises.

 

6.                                      Electricity Charges for Second Expansion Premises.  During the Second Expansion Premises Term, (i) in the event that electricity consumption for the Second Expansion Premises is separately metered, Tenant shall pay directly to the appropriate utility provider any and all costs of electricity utilized in or for the Second Expansion Premises and in support of any of Tenant’s equipment, wherever located, or (ii) in the event that electricity consumption for the Second Expansion Premises is measured by a checkmeter, sub-meter or other measuring device, Tenant shall pay to Landlord, as additional rent, for Tenant’s electrical consumption in the manner set forth in Section 8.l(b) ofthe Lease.

 

7.                                      No Use of Hazardous Materials In Second Expansion Premises.  Notwithstanding any terms or provisions of the Lease to the contrary, Tenant shall not use, store or permit to exist any Hazardous Materials in the Second Expansion Premises, except only for Tenant’s lawful use and storage of and normal and customary amounts of office cleaning and office machine products.

 

8.                                      Use And Storage By Tenant of Hazardous Materials In Existing Premises.  Except as set forth below, Tenant shall not use, store or permit to exist in the Existing Premises any Hazardous Materials.  Without in any way limiting or restricting Tenant’s obligations under Section 29.11 of the Lease, Tenant represents and warrants that the list attached hereto as Schedule 1 is a complete list of all Hazardous Materials and quantities used and stored by Tenant in the Existing Premises as of the Effective Date.  In addition, Tenant shall not use, store or

 

3

 

permit to exist in the Existing Premises any Hazardous Materials other than those listed on Schedule 1 (the “Existing Premises Permitted Hazardous Materials and Quantities”); provided, however, that, subject to the following provisions of this Section 8, Tenant may make reasonable adjustments to the types of Hazardous Materials and quantities used or stored in the Existing Premises so long as:

 

(a)         such types and quantities of Hazardous Materials used or stored in the Existing Premises are materially consistent with the types and quantities of the Existing Premises Permitted Hazardous Materials and Quantities and are necessary to Tenant’s business;

 

(b)         Tenant has obtained and maintains all licenses, permits, registrations and consents required by applicable law (including, without limitation, Environmental Laws) (collectively, “Required Permits”)  to use or store all such types and quantities of Hazardous Materials in the Existing Premises; provided, however, that to the extent that any of such types and/or quantities of Hazardous Materials are listed and/or identified on Schedule 2 attached hereto, (i) Tenant shall provide Landlord with ten (10) days’ advanced written notice prior to Tenant filing any application for a Required Permit with any local, federal or state governmental agency, authority, commission, board or the like (each, a “Governmental Authority”), which notice shall include a copy of the proposed application, (ii) Tenant shall provide Landlord with at least five (5) days’ advanced written notice of any meetings with any such Governmental Authority or hearings initiated by any such Governmental Authority regarding or related to the use or storage of such Hazardous Materials in the Existing Premises, (iii) Landlord and its consultants shall have the right to participate in any such meeting or hearing, and (iv) Tenant shall otherwise keep Landlord reasonably apprised of (A) its discussions with any such Governmental Authority regarding the use or storage of such Hazardous Materials in the Existing Premises, and (B) the status of any application for any Required Permit filed with any Governmental Authority; and

 

(c)          Within five (5) days of Landlord’s written request from time to time, Tenant shall have provided Landlord with a revised, complete and updated Schedule 1 reflecting the reasonable adjustments made by Tenant, and which shall constitute a complete list of all Hazardous Materials and quantities used and stored by Tenant in the Existing Premises as of the date of such revised Schedule 1.

 

Notwithstanding the foregoing, under no circumstances shall Tenant use, store or permit to exist:

 

(i)                                     any ofthe Hazardous Materials or classes thereof listed and/or identified on Schedule 3 attached hereto; or

 

(ii)                                  any Hazardous Materials subject to regulation under 780 CMR 307 that would cause the limitations on quantities of classes of such Hazardous Materials set forth on Schedule 4 attached hereto to be exceeded.

 

4

 

Tenant shall promptly provide Landlord with copies of any and all licenses, permits, registrations or consents relating to the use or storage of Hazardous Materials that are obtained or renewed during the Lease term.  In addition, at Landlord’s written request, Tenant shall complete a Hazardous Materials audit checklist, in a form reasonably acceptable to Landlord, at least annually or at sooner intervals upon Landlord’s written request if Landlord has reason to believe that Tenant has violated the provisions of this Section 8 or other provisions of the Lease governing Hazardous Materials.  In addition, Tenant shall not permit the imposition of any lien  by any Governmental Authority or other party to secure payment for damages caused by, or the recovery of any costs or expenses for, the cleanup, remediation, investigation, transport, disposal, release or threatened release of any Hazardous Material.  Tenant also shall provide Landlord with prompt written notice in reasonable detail of (i) any release or threatened release at, on, under or from the Premises of which Tenant becomes aware which would reasonably be expected to exceed reportable quantities or give rise to a violation of any Environmental Laws or any provision of this Lease, or which could result in a legal obligation to investigate or remediate Hazardous Materials pursuant to, Environmental Laws; (ii) any notice received by Tenant, or of which Tenant has knowledge, from any Governmental Authority in connection with any such release or any violation ofEnvironmental Laws, or in connection with the presence or alleged presence of any Hazardous Materials at the Premises; or (iii) any incurrence of expense by any Governmental Authority or other party in connection with the assessment, containment, removal or disposal of any Hazardous Materials located at, on, in, or under, or emanating from the Premises.  For purposes ofthe indemnity provisions set forth in Section 29.11(e) ofthe Lease, a breach by Tenant of the provisions ofthis Section 8 shall be deemed to be a breach under Article 29.11 of the Lease.

 

In addition to the provisions of Section 29.11(f) of the Lease, upon the expiration or earlier termination of the Lease, Tenant and anyone claiming by, through, or under Tenant, shall (A) provide Landlord with a completed and signed Laboratory Decommissioning Checklist in the form of Schedule 5 attached hereto, which shall be subject to the review and approval of Landlord, on or before the date that Tenant, and anyone claiming by, through or under Tenant, vacates the Premises, and immediately prior to the time that Tenant delivers the Premises to Landlord, (B) decommission all laboratory space in and about the Premises, including without limitation, to the extent required to deliver a complete Laboratory Decommissioning Checklist, and otherwise in accordance with applicable laws and best practices for similarly used laboratory space, and to the satisfaction of Landlord and any Governmental Authority involved in the closure, (C) terminate all licenses, permits, registrations and consents obtained by Tenant and/or by anyone else by, through or on behalf of Tenant, for the use or storage of Hazardous Materials at the Premises, (D) dispose of all Hazardous Materials stored in and about the Premises in compliance with applicable laws (including, without limitation, all Environmental Laws), (E) decontaminate all surfaces and fixed equipment in the Premises, and (F) review and remediate and properly dispose of any specific Hazardous Materials that may be associated with any laboratory fixtures used by Tenant in the Premises.

 

9.                                      Amendments to EXHIBIT 1, SHEET 1 of Lease.  EXHIBIT 1, SHEET 1 ofthe Lease is hereby amended as follows:

 

(a)                                 The mailing address for Landlord under EXHIBIT 1, SHEET 1 shall be deleted and the following shall be substituted therefor:

 

5

 

Landlord

Mailing Address:                  DWF IV One Kendall, LLC

c/o Divco West Real Estate Services, Inc. 

One Kendall Square

Cambridge, MA 02139

Attention:  Property Manager

 

With copies to:                             DWF IV One Kendall, LLC

c/o Divco West Real Estate Services, Inc.

575 Market Street, 35th Floor

San Francisco, CA 94105

Attn:  Asset Manager

 

and

 

Nutter, McClennen & Fish LLP

Seaport West

155 Seaport Boulevard

Boston, MA 02210

Attn:  Timothy M. Smith, Esq.

 

(b)                                 The following shall be inserted as the Rent Payment Address under EXHIBIT 1, SHEET 1:

 

“Rent Payment Address:  Tenant shall make rent and other payments under the Lease in accordance with the instructions and to the addresses as noted below, which payment instructions and addresses may be changed by written notice from Landlord to Tenant.

 

(1)                                 Tenant shall make all checks, in payment of rent and other sums due to Landlord under this Lease, payable to the order ofDWF IV ONE KENDALL, LLC, as mortgagor, for the benefit of GERMAN AMERICAN CAPITAL CORPORATION, as mortgagee, Account No. 432916030 and

 

(2)                                 Tenant shall deliver such checks or otherwise make such payment as follows:

 

By Mail:

City National Bank

P.O. Box 7129

San Francisco, CA 94120-7502

 

By Wire:

Account Name:                                  DWF IV One Kendall, LLC

Account Number:                       432916030

Bank Name:                                                  City National Bank- CBS/SF

 

6

 

Bank Address:                                        150 California Street, 13th Floor

San Francisco, CA 94111

USA

ABA Routing #:                                 1220-1606-6

Swift#:                                                                                 CINAUS6L

Contact:                                                                           Hoa Pham (415) 284-5700"

 

10.                               Parking Passes.   Effective as ofthe Second Expansion Premises Commencement Date, Tenant shall be entitled to a total of eighteen (18) monthly parking passes at the One Kendall Square Parking Garage (the “Garage”)  pursuant to and in accordance with Section 29.14 of the Original Lease, at the then-current prevailing rate in the Garage, as such rate may vary from time to time.  The current rate for such passes as of May 1, 2015 is $260.00 per month.

 

11.                               Broker.  Landlord and Tenant each represents and warrants to the other party that it has not authorized, retained or employed, or acted by implication to authorize, retain or employ, any real estate broker or salesman to act for it or on its behalf in connection with this Amendment so as to cause the other party to be responsible for the payment of a brokerage commission, except for Cushman & Wakefield of Massachusetts and CB Richard Ellis (collectively, the “Broker”). Any fees payable to the Broker are the responsibility of Landlord pursuant to separate written agreement with the Broker.  Landlord and Tenant shall each indemnify, defend and hold the other party harmless from and against any and all claims by any real estate broker or salesman (other than the Broker) whom the indemnifying party authorized, retained or employed, or acted by implication to authorize, retain or employ, to act for the indemnifying party in connection with this Amendment.

 

12.                               Counterpart Execution.  This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one fully executed original Amendment, binding upon the parties hereto, notwithstanding that all of the parties hereto may not be signatories to the same counterpart.  Additionally, telecopied ore­ mailed signatures may be used in place of original signatures on this Amendment.  Landlord and Tenant intend to be bound by the signatures on the telecopied or e-mailed document, are aware that the other party will rely on the telecopied or e-mailed signatures, and hereby waive any defenses to the enforcement of the terms of this Amendment based on the form of signature.

 

13.                               Miscellaneous. In all other respects, the Lease shall remain unmodified and shall continue in full force and effect, as amended hereby. The parties hereby ratify, confirm, and reaffirm all of the terms and conditions of the Lease, as amended hereby.  Tenant represents and warrants to Landlord that, as of the date hereof, (a) Tenant is not in default under any of the terms and provisions of the Lease, (b) there are no uncured defaults or unfulfilled obligations on the part of Landlord under the Lease, and (c) no condition or circumstance exists which, with the giving of notice or the passage of time or both, would constitute a default by Landlord under the Lease.  Tenant further acknowledges that Tenant has no defenses, offsets, liens, claims or counterclaims against Landlord under the Lease or against the obligations of Tenant under the Lease (including, without limitation, any rental payments or other charges due or to become due under the Lease).

 

14.                               Authorization to Execute.  Tenant represents and warrants to Landlord that the

 

7

 

person signing this Amendment on behalf of Tenant is duly authorized to execute and deliver this Amendment on behalf of Tenant in accordance with a duly adopted resolution or other applicable authorization of Tenant, and that this Amendment is binding upon Tenant in accordance with its terms.  Further, if requested by Landlord, Tenant shall, within thirty (30) days after such request, deliver to Landlord a certified copy of a resolution or other applicable authorization of said organization authorizing or ratifying the execution of this Amendment.

 

15.                               No Reservation.  Preparation of this Amendment by Landlord or Landlord’s attorney and the submission of this Amendment to Tenant for examination or signature is without prejudice and does not constitute a reservation, option or offer to lease the Premises. This Amendment shall not be binding or effective until this Amendment shall have been executed and delivered by each of the parties hereto, and Landlord reserves the right to withdraw this Amendment upon written notice to Tenant from consideration or negotiation at any time prior to Landlord’s execution and delivery of this Amendment, which withdrawal shall be without prejudice, recourse or liability.

 

[Signatures on Following Page]

 

8

 

IN WITNESS WHEREOF the parties hereto have executed this Second Amendment of Lease on the date first written above in multiple copies, each to be considered an original hereof, as a sealed instrument.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
DWF   IV ONE KENDALL, LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Divco   West Real Estate Services, Inc., 
   a Delaware corporation, its Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	

    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CATABASIS   PHARMACEUTICALS, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	

    

 

9

 

EXHIBIT 2(Part I)–OUTLINE OF EXISTING PREMISES

 

This plan is intended only to show the general outline of the Existing Premises as of the date of this Amendment.  Any depiction of interior windows, walls, cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items.  It does not in any way supersede any of Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building.  It is not necessarily to scale; any measurements or distances shown should be taken as approximate.  The inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Existing Premises.

 

 

	
LEASE EXHIBIT:   BUILDING 1400 FLOOR 2
    	
DM:OWEST, ONE KENDAI.l SQUAAE, CMIBRIDGE.   liA
    

 

R.E.  DINNEI!N  AltCI!IIECl’S &  Pi..ANNERs,JNc.

nJ,..,.r..uo.-a-..t    ....... CUIIUUJ   IJII1D1m:t  Jai17U11110

 

10

 

EXHIBIT 2(Part II)– OUTLINE OF SECOND EXPANSION PREMISES

 

This plan is intended only to show the general outline of the Second Expansion Premises as of the date of this Amendment.  Any depiction of interior windows, walls, cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist.  Landlord is not required to provide, install or construct any such items.  It does not in any way supersede any of Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building.  It is not necessarily to scale; any measurements or distances shown should be taken as approximate.  The inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Second Expansion Premises.

 

 

	
LEASE EXHIBIT:   BUILDING 1400 - FLOOR 3
    	
DIYCOWEST, ONE KENDAll SQUARE.   CN.IBRIDGE,   ILl.
    

 

 

 

Schedule 1

 

List of Existing Premises Permitted Hazardous Materials and Quantities

 

[See Attached]

 

 

Schedule 2

Hazardous Materials Requiring Prior Notice to Landlord

 

1)                                     Selected biological agents and toxins (Select Agents) as defined by the Federal Select Agent Program (http://www.selectagents.gov/) which have the potential to pose a severe threat to public, animal or plant health or to animal or plant products and require registration to possess, use or transfer. Select Agents are regulated under 7CFR Part 331, 9 CFR Part 121 and 42 CFR Part 73, and may also be regulated by the City of Cambridge.

 

2)                                     Chemicals that present a high level of security risk under the April 2007 Department of Homeland Security- Chemical Facilities Anti-Terrorism Standards (CFATS) regulation (http://www.dhs.gov/identifying-facilities-covered-chemical-security-regulation), that are at or above the applicable Screening Threshold Quantity.

 

3)                                     The following chemicals: 

 

Perchloric Acid

 

Picric Acid

 

Pyrophoric Material: As defined in 780 CMR as a chemical with an auto ignition temperature in air, at or below a temperature of 130°F (54.4°C).

 

Oxidizer Class 3: As defined in 780 CMR as an oxidizer that will cause a severe increase in the burning rate of combustible materials with which the oxidizer comes in contact or that will undergo vigorous self-sustained decomposition due to contamination or exposure to heat.

 

Toxic Gas: As defined in 527 CMR as a gas that has a median lethal concentration (LC50) in air of more than 200 parts per million, but not more than 2,000 parts per million by volume of gas or vapor, or 2 milligrams per liter but no more than 20 milligrams per liter of mist, fume, or dust, when administered by continuous inhalation for 1 hour (or less if death occurs within 1 hour) to albino rats weighing between 0.44lb and 0.66lb (200 and 300 grams) each.

 

Corrosive Gas: As defined in 527 CMR as a gas that causes visible destruction of or irreversible alterations in living tissue by chemical action at the site of contact.

 

4)                                     Radioactive Materials and Devices: as regulated in 105 CMR 120 Radiation Control Program.

 

 

Schedule3

 

Prohibited Hazardous Materials

 

1)                                     Explosive Materials: as defined in 18 USC 841(c) ofthe Federal explosives statutes in United States Code, CHAPTER 40- IMPORTATION, MANUFACTURE, DISTRIBUTION AND STORAGE OF EXPLOSIVE MATERIALS.

 

2)                                     Oxidizer Class 4: As defined in 780 CMR as an oxidizer that can undergo an explosive reaction due to contamination or exposure to thermal or physical shock. Additionally, the oxidizer will enhance the burning rate and is capable of causing spontaneous ignition of combustibles.

 

3)                                     Organic Peroxides: As defined in 780 CMR.

 

Unclassified detonable: Organic peroxides which are capable of detonation. These peroxides present an extremely high explosion hazard through rapid explosive decomposition.

 

Class 1: Class I organic peroxides are capable of deflagration, but not detonation. These peroxides present a high explosion hazard through rapid decomposition.

 

4)                                     Unstable (reactive) materials: As defined in 780 CMR.

 

Class 4: Materials that in themselves are readily capable of detonation or explosive decomposition or explosive reaction at normal temperatures and pressures. This class includes, among others, materials that are sensitive to localized thermal or mechanical shock at normal temperatures and pressures.

 

Class 3: Materials that in themselves are capable of detonation or explosive decomposition or explosive reaction, but that require a strong initiating source or that must be heated under confmement before initiation. This class includes, among others, materials that are sensitive to thermal or mechanical shock at elevated temperatures and pressures.

 

5)                                     Water-reactive materials: As defined in 780 CMR.

 

Class 3: Materials which react explosively with water without requiring heat or confinement.

 

6)                                     Cryogenic liquids (flammable or oxidizing): As defined in 780 CMR as any liquid that has a boiling point below -200°F (-129°C).

 

7)                                     Highly Toxic Gas: As defined in 527 CMR as a chemical that has a median lethal concentration (LC50) in air of200 parts per million by volume or less of gas or vapor, or 2 milligrams per liter or less of mist, fume, or dust, when administered by continuous inhalation

 

 

for I hour (or less if death occurs within I hour) to albino rats weighing between 0.44lb and  0.66 lb (200 and 300 grams) each.

 

8)                                     Unstable (reactive) gas: As defined in 527 CMR as a gas that, in the pure state or as commercially produced, will vigorously polymerize, decompose, or condense; become self­ reactive; or otherwise undergo a violent chemical reaction under condition of shock, pressure, or temperature.

 

9)                                     Pyrophoric gas: As defined in 527 CFR as a gas with an auto ignition temperature in air, at or below a temperature of 130°F (54.4°C).

 

 

Schedule 4   Total Allowable Quantities of Hazardous Materials in Existing Premises 780   CMR Table 307.8(1) 780 CMR Table 307.8(1) Note D 780 CMR Table 307.8(1) Note   E 780 CMR Table 417.2 780 CMR Table 417.2 Class Baseline permitted storage   Adjusted for 100% A.S. Adjusted for 100% cabinets Adjusted for both A.S.   & cab. % Above or Below Grade Total Control Areas NET STORAGE PERMITTED   FOR TOTAL CONTROL TENANT STORAGE PERMITTED Flammable liquid 1A 30 gallons 60   60 120 0.75 3 270 158.32 gallons Flammable liquid 1B 60 gallons 120 120 240   0.75 3 540 316.64 gallons Flammable liquid 1C 90 gallons 180 180 360 0.75 3   810 474.95 gallons Flammable liquid Combined Class 1 120 gallons 240 240 480   0.75 3 1080 633.27 gallons Combustible liquid Class 2 120 gallons 240 240 480   0.75 3 1080 633.27 gallons Combustible Liquid Class 3A 330 gallons 660 660   1320 0.75 3 2970 1741.50 gallons Combustible liquid Class 3B 13200 gallons No   Limit if storage area has automatic sprinkler system(307.8(l) Note F) 26400   No Limit if storage area has automatic sprinkler system(307.8(l) Note F) 0.75   3 No Limit If storage area has automatic sprinkler system[307.8(l) Note F) No   Limit if storage area has automatic sprinkler system(307.8(l) Note F) gallons   Flammable Gas (Gaseous and Liquified) 30 gallons 1000 ft3 at STP 60 2000 60   2000 120 4000 0.75 0.75 33 270 9000 158.32 5277.28 gallons ft3 at STP   Flammable Solid 125 lbs 250 250 500 0.75 3 1125 659.65 lbs Organic Peroxide   UD 1 lbs Facility must have automatic sprinkler system (307.8(1) Note H) 2 2   0.75 3 4.5 2.64 lbs Organic Peroxide 5 lbs 10 10 20 0.75 3 45 2639 lbs   Organic Peroxide 50 lbs 100 100 200 0.75 3 450 263.86 lbs Organic Peroxide   III 125 lbs 250 250 500 0.75 3 1125 659.65 lbs Oxidizer 4 libs Facility must   have automatic sprinkler system (307.8(1) Note H) 2 2 0.75 3 4.5 2.64 lbs   Oxidizer 3 10 lbs 20 20 40 0.75 3 90 52.77 lbs Oxidizer 2 250 lbs 500 500   1000 0.75 3 2250 1319.32 lbs Oxidizer 1 1000 lbs 2000 2000 4000 0.75 3 9000   5277.28 lbs Oxidizer Gas (Gaseous or Liquified] 15 gallons 1500 ft3 at STP 30   3000 30 3000 60 6000 0.75 0.75 33 135 13500 79.16 7915.32 gallons ft3 at STP   Cryogenics Flammable or Oxidizing 45 gallons 90 gallons Not applicable (780   CMR 307.8(1)) 90 0.75 3 202.5 118.74 gallons Pyrophoric Material 4 lbs   Facility must have automatic sprinkler system (307.811) Note H) 8 8 0.75 3 18   10.55 lbs Unstable Class 4 1 lbs Facility must have automatic sprinkler   system (307.8(1) Note H) 2 2 0.75 3 4.5 2.64 lbs Unstable Class 3 5 lbs 10 10   20 0.75 3 45 26.39 lbs Unstable Class 2 50 lbs 100 100 200 0.75 3 450 263.86   lbs Unstable Class 1 125 lbs 250 250 500 0.75 3 1125 659.66 lbs Water   Reactive Class 3 5 lbs 10 10 20 0.75 3 45 26.39 lbs Water Reactive Class 2 50   lbs 100 100 200 0.75 3 450 263.86 lbs Water Reactive No limit No limit No   limit No limit 0.75 3 No limit No limit lbs SF DISTRIBUTION Suite Total   Allocation 14784 25213 0.59

    

 

 

Schedule 5

 

Laboratory Decommissioning Checklist

 

Tenant Laboratory Decommissioning Checklist

 

Tenant Name:                                           Tenant

Location:                             

 

Waste Management

 

Ifyou used and/or stored the following materials, please put a “ v” in the “used and/or stored” box.  Indicate the disposal vendor and date of final removal from the laboratory.

 

	
Item
    	
 
    	
Used and/or Stored
    	
 
    	
Disposal Vendor
   Name
    	
 
    	
Removal Date
    
	
Hazardous (Chemical) Waste
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gas Cylinders
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Biological Waste and Sharps
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Animal Carcasses and Waste
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Radioactive Waste
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Controlled Substances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Select Agents
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Permits and Licenses

 

Ifyou possessed any of the following permits and/or licenses, please put a “v” in the “Applicable” box.  Indicate the date you requested termination of the permit or license, and whether confirmation has been received from the regulatory agency.

 

 

	
Permit or
   License
    	
 
    	
Regulatory Agency
    	
 
    	
Applicable?
    	
 
    	
Date of
   Termination
   Request
    	
 
    	
Confirmation
   from
   Regulator
   Received?
    
	
Recombinant DNA Permit
    	
 
    	
City of Cambridge
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Biosafety Permit
    	
 
    	
City of Cambridge
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laboratory Animal Use Permit
    	
 
    	
City of Cambridge
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Flammables Permit
    	
 
    	
City of Cambridge
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wastewater Discharge Permit
    	
 
    	
Massachusetts Water Resources Authority
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hazardous Waste Generator ID#
    	
 
    	
Massachusetts Department of Environmental Protection
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Radiation Control License
    	
 
    	
Massachusetts Department of Public Health
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Controlled Substances Registration
    	
 
    	
Massachusetts Department of Public Health &   United States Drug Enforcement Agency
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Select Agent Registration
    	
 
    	
United States I Department   of Agriculture or Homeland Security
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Laboratory Decontamination Survey

 

	
Were all fixed surfaces in the laboratory such as   benches, fume hoods, sinks, cold rooms and warm rooms decontaminated with a   disinfectant or other efficacious decontaminant?
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
lf“YES”, briefly describe the decontaminants used,   specific to the hazardous materials in use and storage in the laboratory.
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Did you use any mercury-containing equipment such as   thermometers, or elemental mercury?
    	
 
    	
YES
    	
 
    	
NO
    

 

 

	
If“YES”, briefly   describe:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If“YES”, have you had the sink traps tested for   mercury contamination? If “YES”, attach results.
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If the results of the mercury test indicated the   presence of mercury, did you have it removed and decontaminated? If“YES”,   attach documentation.
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Did you use any perchlorates in the chemical fume   hoods?
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If“YES”, indicate the location of the fume hood(s):
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If“YES”, have you had the fume hood(s) tested   for perchlorate residues? If “YES”, attach results.
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If the results of the perchlorate test indicated the   presence of residues, did you have the fume hood and associated ductwork   decontaminated? If“YES”, attach documentation.
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Is there any equipment remaining in the laboratory   that will not be removed, such as but not limited to biosafety cabinets,   incubators, or freezers?
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If“YES”, briefly describe the equipment and the   methods used to decontaminate the equipment:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
During the lease period, was there ever a chemical   spill in the laboratory?
    	
 
    	
YES
    	
 
    	
NO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If“YES”, please provide information on the material   and quantity involved in the spill, and approximate date of the spill:
    	
 
    	
 
    	
 
    	
 
    

 

 

Print Name of Persqn mpleting This Form:

	
El\zaiOe__ =\h J-\O'Q/Yl
    	
 
    

 

 

 

 

	
Signature   of Company Officer:
    	

    	
 
    

 

 

	
Date:
    	
=l--....:..._/!_+_/_..:_(5

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