Document:

Exhibit 10.3

 

SECOND AMENDMENT OF LEASE

 

This SECOND AMENDMENT OF LEASE (this "Amendment") dated as of the 18th day of May, 2018 by and between 55 CAMBRIDGE PARKWAY, LLC, a Delaware limited liability company, having an address c/o Invesco Real Estate, 1166 Avenue of the Americas, New York, New York 10036, as Landlord (the "Landlord"), and AKCEA THERAPEUTICS, INC., a Delaware corporation, having an address at 55 Cambridge Parkway, Cambridge, Massachusetts 02142, as Tenant (the "Tenant").

BACKGROUND

Landlord and Tenant are holders of the landlord's and tenant's interests, respectively, under a Office Lease Agreement dated March 25, 2015 (and executed by Landlord on April 6, 2015) (the "Original Lease"), as amended by an Amendment of Lease dated as of February 1, 2016 (the "First Amendment") for approximately 6,114 rentable square feet of space located on the first (1st) floor of the West Wing of the Building (the "Building") located at 55 Cambridge Parkway, Cambridge, Massachusetts (the "Premises") (as amended, the Original Lease shall be referred to herein as the "Lease"). The Lease Term is currently scheduled to expire on July 31, 2018. Tenant desires to holdover in its possession of the Premises for the months of August and September 2018. Landlord agrees to permit Tenant to holdover in its occupancy of the Premises for the months of August and September, 2018 pursuant to the terms of this Amendment. Capitalized terms not defined herein shall have the same meaning ascribed to them in the Lease.

W I T N E S S E T H:

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Lease as follows:

1.          Extension of Term for Two (2) Months. In order to accommodate Tenant's request to holdover in its possession of the Premises for the months of August and September, 2018, the Lease Term is hereby extended beyond July 31, 2018 for the period beginning on August 1, 2018 and ending on September 30, 2018 (such period shall be referred to herein as the "Agreed Holdover Period").

2.          Tenant's Payment of Minimum Monthly Rent And Additional Rent Payments For Agreed Holdover Period. Tenant shall pay Minimum Monthly Rent for the Agreed Holdover Period at the holdover rate of $51,204.75 per month, which payment shall be made to Landlord on or before the first day of each calendar month of the holdover period (August 1, 2018 and September 1, 2018). Tenant shall also be obligated to make the additional rent payments for excess Operating Costs and Taxes for the Agreed Holdover Period under the provisions of Article 5 of the Lease. Tenant shall not be liable for any consequential damages as a result of holding over in possession of the Premises during the Agreed Holdover Period.

3.          Ratification of Lease Provisions. Except as otherwise expressly amended, modified and provided for in this Amendment, Tenant hereby  ratifies all of the provisions, covenants and conditions of the Lease, and such provisions, covenants and conditions shall be deemed to be incorporated herein and made a part hereof and shall continue in full force and effect.

 

4.          Entire Amendment. This Amendment contains all the agreements of the parties with respect to the subject matter hereof and supersedes all prior dealings between the parties with respect to such subject matter.

5.          Binding Amendment. This Amendment shall be binding upon, and shall inure to the benefit of the parties hereto, and their respective successors and assigns.

6.          Governing Law. This Amendment shall be governed by the laws of the Commonwealth of Massachusetts without regard to conflict of laws principles.

7.          A uthority. Landlord and Tenant each warrant to the other that the person or persons executing this Amendment on its behalf has or have authority to do so and that such execution has fully obligated and bound such party to all terms and provisions of this Amendment.

8.          No Reservation. Submission of this Amendment for examination or signature is without prejudice and does not constitute a reservation, option or offer, and this Amendment shall not be effective until execution and delivery by each of the parties hereto.

9.          Counterparts. This Amendment may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. An electronic mail or facsimile version of an executed original of this Agreement shall be deemed an original, and each of the parties hereto intends to be bound by an electronic mail or facsimile version of a fully-executed original hereof or of an electronic mail or facsimile version of executed counterpart originals hereof.

[SIGNATURES ON FOLLOWING PAGE]

 

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EXECUTED under seal as of the date first above written.

 

	 	
LANDLORD:

	 	
	 	
55 CAMBRIDGE PARKWAY, LLC,

	 	
a Delaware limited liability company

 

	 	
By:

	
Invesco ICRE Massachusetts REIT

Holdings, LLC, Its sole member

 

	 	 	By:	
/s/ Perry Chudnoff

	 

			Name:	
Perry Chudnoff

	 

		 	Title:	
Vice President

	 

 

	 	
TENANT:

	 	 
	 	
AKCEA THERAPEUTICS, INC.,

a Delaware corporation

 

	 	
By:

	
/s/ Jeffrey M. Goldberg

	 

		
Name:

	Jeffrey M. Goldberg	 
	 	
Title: 

	COO	 
	 	
Hereunto Duly AuthorizedExhibit

ENERSYS
AWARD AGREEMENT FOR NON-EMPLOYEE DIRECTORS  
 DEFERRED STOCK UNITS 
THIS AWARD AGREEMENT FOR NON-EMPLOYEE DIRECTORS – DSUs (this “Award Agreement”) is made as of __________ (the “Grant Date”) between EnerSys, a Delaware corporation (the “Company”), and the individual identified on the signature page hereof (the “Director”).
WHEREAS, the Director is currently a non-employee director of the Company and, pursuant to the EnerSys 2017 Equity Incentive Plan (the “Plan”) and upon the terms and subject to the conditions hereinafter set forth, the Company desires to provide the Participant with an incentive to increase the Director’s interest in the success of the Company through the granting to the Director of deferred stock units (“DSUs”).
1.Grant of Deferred Stock Units.  Subject to the provisions of this Award Agreement and pursuant to the provisions of the Plan, the Company hereby grants to the Director the number of DSUs specified on the signature page hereof.
2.Terms Subject to the Plan.  This Award Agreement is subject to, and governed by, the provisions of the Plan and unless the context requires otherwise, terms used herein shall have the same meaning as in the Plan.  In the event of a conflict between or among the provisions of the Plan and this Award Agreement, the Plan shall control.
1.    DSU Account.  
a.    The Company shall credit to a bookkeeping account (the “Account”) maintained by the Company, or a third party on behalf of the Company, for the Director’s benefit the DSUs, each of which shall be deemed to be the equivalent of one share of the Company’s common stock, par value $.0.01 per share (each, a “Share”).  
b.    Whenever any cash dividends are declared on the Shares, on the date such dividend is paid, the Company will credit to the Account a number of additional DSUs equal to the result of dividing (i) the product of the total number of DSUs credited to the Account on the record date for such dividend and the per Share amount of such dividend by (ii) the Fair Market Value of one Share on the date such dividend is paid by the Company to the holders of Shares.  
c.    Whenever any dividends or distributions are declared on the Shares in the form of additional Shares, or there occurs a forward split of Shares, then a number of additional DSUs shall be credited to the Account as of the payment date for such dividend or distribution or forward split equal to (i) the number of DSUs credited to the Account as of the record date for such dividend or distribution or split, multiplied by (ii) the number of additional Shares actually 

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paid as a dividend or distribution or issued in such split in respect of each outstanding Share. 
d.    Any additional DSUs credited under Sections 3(b) and (c) shall be or become vested to the same extent as the underlying DSUs and be settled and distributed on the same date as the underlying DSUs.
2.    Vesting.  The Director’s rights with respect to the DSUs granted hereunder shall be 100% vested at all times.
3.    Forfeiture and Clawback.  If, at any time prior to the first anniversary of when the Director ceases service as a director of the Company for any reason, the Director engages in any activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including, but not limited to: (i) conduct related to the Director’s service as a director of the Company for which either criminal or civil penalties against the Director may be sought, (ii) material violation of the Company’s policies, or (iii) disclosure or misuse of any confidential information or material concerning the Company, then (A) the DSUs shall be forfeited effective as of the date on which the Director enters into such activity, and (B) the Director shall within ten (10) days after written notice from the Company return to the Company the Shares paid by the Company to the Director with respect to the DSUs and, if the Director has previously sold all or a portion of the Shares paid to the Director by the Company, the Director shall pay the proceeds of such sale to the Company.  The DSUs and any Shares paid pursuant to DSUs shall be subject to the terms of the clawback policy adopted by the Board of Directors (as such policy may be amended from time-to-time).
4.    Payment of DSUs.  Payment of the Director’s Account shall be made as elected on the signature page hereof, or if no election is made, in one lump sum on the Payment Date(s) (as elected on the signature page hereof), or, if no election is made, the Payment Date shall be the date that is six (6) months following the date of the Director’s “separation from service” (within the meaning of Treas. Reg. § 1.409A-1(h)). If the New York Stock Exchange (or any successor exchange or stock market on which shares of the Company’s common stock are traded) is not open on the Payment Date, then payment shall be made on the next day the New York Stock Exchange (or any successor exchange or stock market on which shares of the Company’s common stock are traded) is open.
5.    Form of Payment.  Payments pursuant to Section 6 shall be made in Shares equal to the number of DSUs credited to the Account.
6.    Change in Control (Cash).  Notwithstanding the foregoing provisions of Section 6 and 7, in the event of a Change in Control where the holders of Shares receive cash consideration for their Shares in consummation of the Change in Control, the Payment Date shall be the date of such Change in Control and payment shall be in a single cash lump sum equal to the number of DSUs credited to the Account times the cash consideration received for a Share.
7.    Beneficiary.  In the event of the Director’s death prior to payment of the DSUs credited to the Account, payment shall be made to the last beneficiary designated in writing that 

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is received by the Company prior to the Director’s death or, if no designated beneficiary survives the Director, such payment shall be made to the Director’s estate.
8.    Source of Payments.  The Director’s right to receive payment under this Award Agreement shall be an unfunded entitlement and shall be an unsecured claim against the general assets of the Company.  The Director has only the status of a general unsecured creditor hereunder, and this Award Agreement constitutes only a promise by the Company to pay the value of the Account on the Payment Date.
9.    Nontransferability.  Except as permitted by the Plan, this Award Agreement shall not be assignable or transferable by the Director or by the Company (other than to successors of the Company) and no amounts payable under this Award Agreement, or any rights therein, shall be subject in any manner to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, levy, lien, attachment, garnishment, debt or other charge or disposition of any kind.
10.    No Guarantee of Membership.  The award of DSUs by the Company under this Award Agreement to the Director shall not be deemed to be a contract between the Company and the Director to retain his or her position as a director of the Company.
11.    Taxes.   The Director shall be solely responsible for all applicable income and self-employment taxes and other wage deductions incurred in connection with the vesting and settlement of the DSUs subject to this Award Agreement.  Unless required to do so by applicable law, the Company and its affiliates shall not pay or withhold any Federal, state, local, foreign or other taxes of any kind with respect thereto.  Neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold the Director harmless from any or all such taxes.
12.    Notices.  All notices required or permitted under this Award Agreement shall be in writing and shall be delivered personally or by mailing the same by registered or certified mail postage prepaid, to the other party.  Notice given by mail shall be deemed delivered at the time and on the date the same is postmarked.
Notices to the Company should be addressed to:
EnerSys
2366 Bernville Rd.
Reading, PA 19605
Attention:  General Counsel
Notices to the Director should be addressed to the Director at the Director’s address as it appears on the Company’s records.  The Company or the Director may by writing to the other party, designate a different address for notices.
13.    Successors and Assigns.  This Award Agreement shall inure to the benefit of and be binding upon the heirs, legatees, distributees, executors and administrators of the Director and the successors and assigns of the Company.

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14.    Governing Law.  This Award Agreement shall be governed by, and interpreted in accordance with, the laws of the Commonwealth of Pennsylvania, other than its conflicts of laws principles.
15.    Entire Agreement; Modification.  This Award Agreement and the Plan constitute the entire agreement between the parties relative to the subject matter hereof, and supersede all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Award Agreement.  This Award Agreement may be modified, amended or rescinded only by a written agreement executed by both parties.
16.    Severability.  The invalidity, illegality or unenforceability of any provision of this Award Agreement shall in no way affect the validity, legality or enforceability of any other provision.
IN WITNESS WHEREOF, this Award Agreement has been executed by the Company and the Director, effective as of the date on the first page of this Award Agreement.
        
	
	
	ENERSYS

	By: _________________

	David M. Shaffer _______________

	President & Chief Executive Officer

	____________________________________

	______________________, Director

Date of Grant:  

Number of DSUs:     __________

Payment Date(s): 

		
	___ 
	I elect to commence to receive payment of my Director Account on the ___________ anniversary of my “separation from service” (within the meaning of Treas. Reg. § 1.409A-1(h)) as a Director.  [NOTE: In no event can the election be for a period that is less than six (6) months after “separation from service”.  If no election is made, payment will commence on the date that is six (6) months following the date of the Director’s “separation from service”.]   

		
	___ 
	I elect to receive payment of my Director Account in the form of:

_____  a lump sum payment.

_____  annual installments over ____ years with each installment paid on the anniversary of my separation from service as a Director.  

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