Document:

Exhibit
10.3

 

HQ Global
Workplaces Service Agreement

 

	
  Service
  Agreement Type:

  	
  

  	
  

  	
  

  	
  Agreement
  Date:

  	
  May 4,
  2005

  

 

	
  

  	
   

  	
  Business
  Center Bank Details

  
	
   

  	
   

  	
   

  
	
  Street/Floor

  	
   

  	
  4819 Emperor
  Blvd., Imperial Business Park - 4th Floor

  	
   

  	
  Name:

  	
   

  	
   

  
	
  City:

  	
   

  	
  Durham

  	
   

  	
  Sort code:

  	
   

  	
   

  
	
  State & Zip Code:

  	
   

  	
  NC, 27703

  	
   

  	
  Account number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Client details (not an HQ center address)

  	
   

  	
  Corporate Account

  	
   

  	
  o Yes  PCA  o Yes

  
	
  Company
  Name:

  	
   

  	
  Tranzyme
  Pharmceuticals

  	
   

  	
  Federal ID No.:

  	
   

  	
   

  
	
  Address:

  	
   

  	
  3001
  12th Avenue North

  	
   

  	
  Contact
  Name/Title:

  	
   

  	
  Vipin
  K. Garg, Ph.D.

  
	
  State:

  	
   

  	
  Quebec

  	
   

  	
  City:

  	
   

  	
  Sherbrooke

  
	
  Telephone:

  	
   

  	
  819.820.6838

  	
   

  	
  Zip
  Code:

  	
   

  	
  J1H
  5N4

  
	
  Emergency
  Contact:

  	
   

  	
  919.434.6643

  	
   

  	
  Fax:

  	
   

  	
  819.820.6841

  
	
  Email
  Address:

  	
   

  	
  vgarg@tranzyme.com

  	
   

  	
  Emergency
  Phone:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invoicing details (if
  different)

  	
   

  	
  Contact
  Name/Title:

  	
   

  	
  Accounts
  Payable

  
	
  Company
  Name:

  	
   

  	
   

  	
   

  	
  City:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  	
  Zip
  Code:

  	
   

  	
   

  
	
  State:

  	
   

  	
   

  	
   

  	
  Fax:

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

The
standard fee (excluding tax)

 

	
  Office Number

  	
   

  	
  Market Office Price

  per Month $

  	
   

  	
  Monthly

  Office Price $

  	
   

  	
  Number of

  workstations

  	
   

  	
  Total per Month $

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  447

  	
   

  	
  $

  	
  8,240.00

  	
   

  	
  $

  	
  6,180.00

  	
   

  	
  1

  	
   

  	
  $

  	
  6,180.00

  	
   

  	
  Please
  see addendum A,B,C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  455,456,457 Rent free for May

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $2700
  rent for month of June

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  Free
  rent thereafter until occ.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  of
  Suite 447.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total per Month $

  	
   

  	
  $

  	
  6,180.00

  	
   

  	
   

  	
   

  
															

 

	
  Initial Payment:

  	
   

  	
  Monthly
  Office Payment

  	
   

  	
   

  	
   

  	
  $

  	
  6,180.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Service
  Retainer

  	
   

  	
  2

  	
   

  	
  $

  	
  10,180.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly
  Taxes

  	
  Rate

  	
  0.00%

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Initial Payment

  	
   

  	
  $

  	
  16,360.00

  	
   

  	
   

  	
   

  
	
  Monthly Payment:

  	
   

  	
  Total Monthly Pymt (excl. of services)

  	
   

  	
  $

  	
  6,180.00

  	
   

  	
   

  	
   

  
												

 

	
  Length of Agreement

  	
   

  	
  Start
  date (MM/DD/YY):

  	
  May 1, 2005

  	
  End date (MM/DD/YY):

  	
   

  	
  February 28, 2006

  	
   

  

 

Comments

 

After first three months, client to have 30-day notice period to break
agreement without penalty. Proper written notice required to exercise the break
and must end the last day of the month.

 

Check here if you
do not consent to HQ processing data in accordance with Clause 28 of this
Agreement. o

 

We are HQ Global
Workplaces, Inc at 15305 North Dallas Parkway, 14th Floor, Addison, TX
75001.  This Agreement incorporates our
terms of business set out on attached Terms of Business which you confirm you
have read and understood.  We both agree
to comply with those terms and our obligations as set out in them.  Note that the Agreement does not come to an
end automatically.  See “Bringing your
Agreement to an end”.

 

	
  Name
  (printed)

  	
  /s/
  Richard I. Eisenstadt

  	
   

  	
  Name
  (printed)

  	
  Jennifer
  Dittmer

  
	
  Title
  (printed)

  	
  Richard
  I. Eisenstadt

  	
   

  	
  Title
  (printed)

  	
  Sales
  Manager

  
	
  Date
  (MM/DD/YY)

  	
  5/6/2005

  	
   

  	
  Date
  (MM/DD/YY)

  	
  4/28/2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNED on your behalf (Client)

  	
   

  	
  SIGNED on our behalf (HQ Global Workplaces, Inc)

  

 

 

 

Terms of Business

USING HQ
BUSINESS CENTERS

 

1. We Are
HQ Global Workplaces Inc. known hereafter as “HQ”.

 

These are our terms of
business. They apply to the service Agreement which you the client have signed
(which we refer to simply as your Agreement).

 

Your Agreement supersedes
any previous Agreement you may have with us for the same services and contains
all the terms we have agreed.

 

STANDARD
SERVICES INCLUDED IN YOUR STANDARD FEE

 

2.
Furnished Office Accommodation

 

We are to provide the number
of serviced and fully furnished accommodations for which you have agreed to pay
in the business center stated in your Agreement (also referred to in this
Agreement as the “Furnished Office Accommodation” or the “Accommodation(s)”).
Your Agreement lists the accommodations we have initially allocated for your
use.

 

Occasionally, we may need to
allocate different accommodations, but these will be of equivalent size and we
will attempt to obtain your approval with respect to such different
accommodations in advance.

 

3. Office
Services

 

We are to provide the
services described on the front of this Agreement, the HQ workstation or cube
offer and the Connectivity Order during normal operating hours Monday to
Friday. (Connectivity is available 24/7) 

 

We are happy to discuss
special arrangements for use of these services outside our normal operating
hours. All services are subject to the availability of our center team at the
time of any service request. We will endeavor to deal with a service request at
the earliest opportunity, but will not be held responsible for any delay.

 

If in our opinion, we decide
that a request for any particular Business Service is excessive, we reserve the
right to charge an additional fee at our usual published rates based on the
time taken to complete the service.

 

4. HQ
Internet Access

 

You must comply with any
copyright notices, license terms or other notices appearing on screen or as
part of any material on the Internet or our network. You must not copy, use or
exploit such software or other material in any way, unless we have explicitly
given you permission to do so. You must strictly comply with the terms of any
permission that we give.

 

We do not make any
representations as to the security of our network (or the Internet) or of any
information that you place on it. You should adopt whatever security measures
(such as encryption) you believe are appropriate to your circumstances.

 

We cannot guarantee that a
particular degree of availability will be attained in connection with your use
of the services.

 

You hereby warrant to us
that our provision of these services to you will not infringe the rights of any
third party.

 

You agree to comply with the
HQ Technology Policy as set out on the HQ acceptable use policy located in your
welcome pack upon move in.

 

We warrant that the services
shall be provided and performed in a professional and workmanlike manner and
shall conform to the description of the services set out in the offers for “HQ
Connectivity Services”. If we fail to provide the services as warranted, your
sole and exclusive remedy shall be the remedy of such failure by us within a
reasonable time after written notice.

 

The above warranty is in
lieu of all other terms, conditions and warranties, whether express or implied
by usage, custom, statute or otherwise, appertaining to the services and manner
in which we perform our obligations and exercise our rights including, but
without prejudice to the generality of the foregoing, such as relate to the
description, performance, quality, suitability or fitness for any particular
purposes, of the services. We do not warrant that the services will be
uninterrupted or error free.

 

USING THE
ACCOMMODATION

 

5. On
Moving In

 

You will be asked to sign an
inventory of all accommodation(s), furniture and equipment you are permitted to
use, together with a note of its condition, and details of the keys or entry
cards issued to you. You may at any time have as many employees working in your
accommodation(s) as there are allowable workstations. This number is noted
on the front of this Agreement. If at any time you exceed the number of people
than there are workstations those employees will pay the hourly or daily rate
for additional accommodations. This fee will be in addition to the monthly
supplemental fee and Hotdesk fee.

 

6. The
Nature Of Your Business

 

You must only use the
accommodation for office purposes, and only for the business stated in your
Agreement or subsequently agreed with us. Office use of a “retail” nature,
involving frequent visits by members of the public, is not permitted. You must
not carry on a business which competes with our business of providing serviced
office accommodations. You must not use the name HQ in any way in connection
with your business.

 

7. Your
Name And Address

 

You may only carry on that
business in your name or some other name that we previously agree. At your
request and cost we will include that name in the house directory at the
business center, where this is available. You must not put up any signs on the
doors to your accommodation or anywhere else which is visible from outside the
Accommodation you are using. You may use the business center address as your
business address. If you use the center address as your registered business
address, you must have a third-party registered as your agent for service of
process.

 

8. Taking
Care Of Our Property

 

You must take good care of
all parts of the business center, its equipment, fittings and furnishings which
you use. You must not alter any part of it. You are liable for any damage
caused by you or those in the business center with your permission or at your
invitation.

 

9. Office
Furniture And Equipment

 

You must not install any
furniture or office equipment, cabling, IT or telecom connections without
our consent, which we may refuse at our absolute discretion.

 

10. Keys
And Security

 

Any keys or entry cards
which we let you use remain our property at all times. You must not make any
copies of them or allow anyone else to use them without our consent. Any loss
must be reported to us immediately and you must pay the cost of replacement
keys or cards and/ or changing locks, if required. If you are permitted to use
the business center outside normal working hours it is your responsibility to
lock the doors to your accommodation and to the business center when you leave.

 

11. Comply
With The Law

 

You must comply with all
relevant laws and regulations in the conduct of your business. You must do
nothing illegal. You must not do anything that may interfere with the use of
the business center by us or by others, cause any nuisance or annoyance,
increase the insurance premiums we have to pay or cause loss or damage to us or
to the owner of any interest in the building which contains the business
center. You acknowledge that (a) the terms of the foregoing sentence are a
material inducement to us for the execution of your Agreement and (b) any
violation by you of the foregoing sentence shall constitute a material default
by you hereunder, entitling us to terminate your Agreement.

 

12. Comply
With House Rules

 

You must comply with any
house rules which we impose generally on users of the business center
whether for reasons of health and safety, fire precautions or otherwise.

 

13.
Insurance

 

It is your responsibility to
arrange insurance for your own property which you bring into the business
center and for your own liability to your employees and to third parties.

 

PROVIDING
THE SERVICES

 

14. Access
To Your Accommodation

 

We can enter your
accommodation at any time. However, unless there is an emergency we will as a
matter of courtesy try to inform you in advance when we need access to carry
out testing, repair or works other than routine inspection, cleaning and
maintenance. We will also respect security procedures to protect the confidentiality
of your business. 

 

15. At The
Start Of Your Agreement

 

If for any reason we cannot
provide the Accommodation(s) stated in your Agreement by the date when
your Agreement is due to start we have no liability to you for any loss or
damages but you may cancel the Agreement without penalty. We will not charge
you the standard fee for accommodations you cannot use until they become
available.

 

16.
Suspension Of Services

 

We may by notice suspend the
provision of services (including access to the business center) for reasons of
political unrest, strikes, or other events beyond our reasonable control, in
which event payment of the standard fee will also be suspended for the same
period.

 

17. Our
Liability

 

We are not liable for any
loss as a result of our failure to provide a service as a result of mechanical
breakdown, strike, delay, failure of team, termination of our interest in the
building containing the business center or otherwise unless we do so
deliberately or are grossly negligent. We are also not liable for any failure
until you have informed us about it in writing and given us a reasonable time
to put right.

 

You agree (a) that we
will not have any liability for any loss, damage or claim which arises as a
result of, or in connection with, your Agreement and/or your use of the
services except to the extent that such loss, damage, expense or claim is directly
attributable to our deliberate act or our gross negligence (our liability); and
(b) that our liability will be subject to the limits set out in the next
paragraph.

 

We will not in any
circumstances have any liability for loss of business, loss of profits, loss of
anticipated savings, loss of or damage to data, third party claims or any
consequential loss. We strongly advise you to insure against all such potential
loss, damage expense or liability.

 

We will be liable:

 

·                  up to a maximum of
$1,000,000 (for any one event or series of connected events) for damage to your
personal property;

 

·                  up to a maximum equal to
125% of the total fees paid under your Agreement up to the date on which the
claim in question arises or $50,000 (whichever is the higher), in respect of
all other losses, damages expenses or claims.

 

YOUR
AGREEMENT

 

18. The
Nature Of Your Agreement

 

Your Agreement is the
commercial equivalent of an Agreement for accommodation in a hotel. The whole
of the business center remains our property and in our possession and control.
You acknowledge that your Agreement creates no tenancy interest, leasehold
estate or other real property interest in your favor with respect to the accommodation.
We are giving you just the right to share with us the use of the business
center so that we can provide the services to you. The Agreement is personal to
you and cannot be transferred to anyone else. We may transfer the benefit of
your Agreement and our obligations under it at any time.

 

19.
Duration

 

Your Agreement lasts for the
period stated in it and will then automatically be extended for successive
periods equal to the current term but no less than 3 months until brought to an
end by you or by us. All periods shall run to the last day of the month in
which they would otherwise expire. The fees on any renewal will be the market
price listed on the front of the service Agreement. In all other respects your
Agreement will renew on the same terms and conditions.

 

20.
Bringing Your Agreement To An End

 

Either of us can terminate
your Agreement at the end date stated in it, or at the end of any extension or
renewal period, by giving at least three months written notice to the other.
However, if your Agreement, extension or renewal is for three months or less
and one of us wishes to terminate it, the notice period is two months or if
shorter one week less than the period stated in your Agreement, extension or
renewal.

 

21. Ending
Your Agreement Immediately

 

We may put an end to your
Agreement immediately by giving you notice if: you become insolvent, go into
liquidation or become unable to pay your debts as they fall due, you are in
breach of one of your obligations which cannot be put right or which we have
given you notice to put right and which you have failed to put right within
fourteen days of that notice, or your conduct, or that of someone at the
business center with your permission or at your invitation, is incompatible with
ordinary office use.

 

If we put an end to the
Agreement for any of these reasons it does not put an end to any then
outstanding obligations you may have and you must:

 

·                  pay for additional services
you have used

 

·                  pay the standard fee for the
remainder of the period for which your Agreement would have lasted had we not
ended it, or (if longer) for a further period of three months, and

 

·                  indemnify us against all
costs and losses we incur as a result of the termination.

 

22. If The
Business Center Is Not Available

 

In the unlikely event that
we are no longer able to provide the services and accommodation at the business
center stated in your Agreement then your Agreement will end and you will only
have to pay standard fees up to the date it ends and for the additional
services you have used. We will try to find a suitable alternative
accommodation for you at another Regus/HQ business center.

 

23. When
Your Agreement Ends

 

Upon your departure or if
you, at your option, choose to relocate to a different accommodation within the
business center a flat fee ($250.00 per office) will be assessed to cover the
routine cost of repainting and redecorating the accommodation to return it to
its original condition in addition to general maintenance to the common areas
of the business center in which you have had access. We reserve the right to
charge additional reasonable fees for any repairs needed above and beyond
normal wear and tear. If you leave any of your own property in the business
center we may dispose of it in any way we choose without owing you any
responsibility for it or any proceeds of sale. 

 

In order to transition your
mail and telephone calls from the business center, you will be automatically
entered into a HQ Virtual Office (“VO”) Agreement with us on our standard terms
at the time for 3 months. Current contract terms and pricing can be obtained
online or through your HQ General Manager. 

 

If you continue to use the
accommodation when your Agreement has ended: 

 

·                  you are responsible for any
loss, claim or liability we incur as a result of your failure to vacate on
time.

 

·                  we may, at our discretion,
permit you an extension subject to a surcharge on the standard fee.

 

24.
Employees

 

While your Agreement is in
force and for a period of six months after it ends, you must not solicit or
offer employment to any of our current employees or anyone who has left our
employment in the last 3 months. If you do, we estimate our loss at the
equivalent of one year’s salary for each of the employees concerned and you
must pay us damages equal to that amount.

 

25. Notices

 

All formal notices must be
in writing. Client is responsible to keep current address of record on file
with the center.

 

26.
Confidentiality

 

The terms of your Agreement
are confidential. Neither of us may disclose them without the other’s consent
unless required to do so by law or an official authority. This obligation
continues after your Agreement ends.

 

27.
Indemnities

 

You must indemnify us in
respect of all liability, claims, damages, loss and expenses which may arise
(except to the extent caused by our gross negligence or willful misconduct).

 

·                  If someone dies or is
injured while in the accommodation you are using.

 

·                  From a third party in
respect of your use of the business center and the services.

 

·                  If you do not comply with
the terms of your Agreement.

 

You must also pay any cost,
including reasonable legal fees, which we incur in enforcing your Agreement.

 

28. Data
Protection

 

You agree that we may
process, disclose or transfer (including outside the EEA — European Economic
Area - to other countries which are part of our international network from time
to time) any personal data which we hold on or in relation to you provided that
in doing so we take such steps as we consider reasonable to ensure that it is
used only to fulfill our obligations under your Agreement; for work assessment
and fraud prevention; or to make available information about new or beneficial
products and services offered by us and other organizations which we consider
may be of interest to you.

 

Please be aware that
countries outside the EEA — European Economic Area - may not have laws in force
to protect your personal data.

 

29.
Applicable Law

 

Your Agreement is
interpreted and enforced in accordance with the laws of the state in which the
business center in question is located. We both accept the exclusive
jurisdiction of the courts of such jurisdiction where the center is located.

 

FEES

 

In the following clauses any
references to “fees” alone means all of the standard service fees,
pay-as-you-use fees, the Business Services price, and the Connectivity Service
price.

 

30.
Standard Services

 

The standard fee, the
Business Services price (if applicable), the Connectivity Service price (if
applicable) and the Telecom Services price (if applicable) plus appropriate
taxes and all other fees and charges referred to in our service Agreement, in
accordance with our published rates which may change from time to time, are
invoiced in respect of the services to be provided during the following month
in advance in full on the 1st day (or such other day as we designate) of each
month. You agree to pay promptly all (i) sales, use, excise and any other
taxes, surcharges or license fees which you are required to pay to any governmental
authority (and, at our request, will provide to use evidence of such payment),
and (ii) any taxes paid by us attributable to your accommodation,
including, without limitation, any gross receipts, rent and occupancy taxes,
surcharge fees or tangible personal property taxes. The Business and
Connectivity Service Packages or Business and Connectivity Supplemental Service
are mandatory for the Cube and Hotdesk offering.

 

31.
Additional Services

 

Fees for additional
services, plus applicable taxes, in accordance with our published rates which
may change from time to time, are invoiced in arrears and payable on the 1st
day (or such other day as we designate) of the month following the calendar
month in which the additional services were provided.

 

32. Service
Retainer

 

You will be required to pay
a service retainer equivalent to 2 months standard office fee on entering into
your Agreement. This will be held by us as security for performance of all your
obligations under your Agreement. The service retainer, or any balance after
deducting outstanding fees, three months Business Continuation fee, and other costs
due to us, will be returned to you within 30 days of the date you have settled
your account with us in full. We may require you to pay an increased retainer
if outstanding fees exceed the service retainer held or if you frequently fail
to pay us when due.

 

33. Late
Payment

 

If you do not pay fees when
due, a service fee of $25.00 plus 5% interest will be charged on all overdue
balances under $1,000.00 or a fee of $50.00 plus 5% interest on all overdue
balances will be charged on all overdue balances of $1,000.00 or greater. If
you dispute a part of any invoice you must pay the amount not in dispute by the
due date or be subject to late fees. The amount of interest and fees we charge
will be the lesser of the amounts stated, or the State’s legally enforceable
maximum, whichever is the lesser. In the case of U.S. Government Contracts, the
amount of interest and fees we charge will be lesser of the amounts stated or
those set by the Secretary of the Treasury and implemented by the Prompt
Payment Act.

 

34.
Insufficient Check Fees

 

You will pay a fee of $25.00
or the maximum amount permitted by law for the return of any payment for
insufficient funds.

 

35. Subordination

 

Your Agreement is
subordinate to our lease with our landlord and to any other Agreements to which
our lease with our landlord is subordinate.

 

36. Annual
Increase

 

We will increase your
current standard service fee on each and any annual anniversary of the start
date of your Agreement by 4% or the CPI, whichever is greater, or such other
broadly equivalent index which we substitute, over the previous year. This will
only apply to Agreements that have an original start and end date constituting
more than a 12 month term. Renewals do not fall under this category and will be
renewed as per clause 19 above.

 

	
  Client Initials

  	
  RIE

  	
   

  

 

 

 

 

This
Exhibit “A” is attached to and made a part of HQ, a member of the Regus
Group Network (“HQ”) Service Agreement (the “Service Agreement”) between
Tranzyme, Inc.  (“Client”) and HQ,
entered as of this 6th day of May, 2005 for Suite 447, located at 4819
Emperor Blvd., Durham, NC 27703, USA.

 

WHEREAS
the parties agree to modify certain terms of the Service Agreement as described
herein:

This
Addendum is made a part of the existing Service Agreement dated May 06,
2005.

 

Client
to occupy offices 455, 456, 457, 466, and 471 until construction is completed
per attached addendum B in suite 447. HQ shall be responsible for contracting
to have the space demised and any associated improvements. Tranzyme agrees
to front $18,000.00 on July 01, 2005 for such work. These funds will in
effect pre-pay rent for July, August, and September, 2005. HQ agrees to waive
the monthly office fee for Suite 447 during the first (3) months of
occupancy of Suite 447. HQ will invoice Tranzyme for any balance due,
including a staggered deposit schedule as detailed in Addendum C. HQ will be
financially responsible for any construction cost above $18,000.00, with the
exception of any special requests or additional requirements from Tranzyme.

 

The term of this Addendum shall be for 10 months terminating on February 28,
2006. Along with original service agreement, it will automatically renew
for another six months if a termination or extension is not provided in writing
by December 01, 2005. It is further provided that all of the other terms
of the existing Service Agreement (and any subsequent Addenda) shall apply to
the above noted suite and workstations and, except as set forth above, all of
the terms and conditions of the existing Service Agreement (and any subsequent
Addenda) shall remain in full force and effect.

 

AGREED to this 6th day of May, 2005

 

	
  HQ,
  a member of the Regus Group Network

  	
   

  	
  Tranzyme, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Aaron M. Bittikofer

  	
   

  	
  By:
  

  	
  /s/
  Richard I. Eisenstadt

  
	
   

  	
  Name:

  	
  Aaron
  M. Bittikofer

  	
   

  	
   

  	
  Name:
  

  	
  Richard
  I. Eisenstadt

  
	
   

  	
  Title:

  	
  General Manager

  	
   

  	
   

  	
  Title:

  	
  CFO

  
								

 

RTP Center

4819 Emperor Blvd.

4th Floor

Durham NC 27703

T 919-313-4500    F 919-313-4508

 

 

 

 

 

 

This
Exhibit “C” is attached to and made a part of HQ, a member of the Regus
Group Network (“HQ”) Service Agreement (the “Service Agreement”) between
Tranzyme, Inc.  (“Client”) and HQ,
entered as of this 6th day of May, 2005 for Suite 447, located at 4819
Emperor Blvd., Durham, NC 27703, USA.

 

WHEREAS
the parties agree to modify certain terms of the Service Agreement as described
herein:

 

This
Addendum is made a part of the existing Service Agreement dated May 06,
2005. Client agrees to pay a refundable service retainer to HQ due
on the following dates:

 

	
  MAY 09, 2005: 

  	
  $

  	
  1000

  	
   

  
	
  JUNE 01, 2005: 

  	
  $

  	
  3000

  	
   

  
	
  SEPT 01, 2005: 

  	
  $

  	
  6180

  	
   

  

 

The term of this Addendum shall be for 10 months terminating on February 28,
2006. Along with original service agreement, it will automatically renew
for another six months if a termination or extension is not provided in writing
by December 01, 2005. It is further provided that all of the other terms
of the existing Service Agreement (and any subsequent Addenda) shall apply to
the above noted suite and workstations and, except as set forth above, all of
the terms and conditions of the existing Service Agreement (and any subsequent
Addenda) shall remain in full force and effect.

 

AGREED to this 6th day of May, 2005

 

 

	
  HQ, a member of the Regus Group Network

  	
  Tranzyme, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Aaron M. Bittikofer

  	
   

  	
  By:

  	
  /s/
  Richard I. Eisenstadt

  
	
   

  	
  Name:

  	
  Aaron
  M. Bittikofer

  	
   

  	
  Name:

  	
  Richard
  I. Eisenstadt

  
	
   

  	
  Title:

  	
  General
  Manager

  	
   

  	
  Title:

  	
  CFO

  
							

 

RTP Center

4819 Emperor Blvd.

4th Floor

Durham NC 27703

T 919-313-4500 F 919-313-4508

 

 

 

 

 

Office Agreement Addendum

 

This Office Agreement Addendum (“Addendum”) is
made and entered into on the 6 day of May, 2005, by and between HQ GLOBAL WORKPLACES, INC. (“HQ”) and Tranzyme Inc. (“Client”).

 

Recitals

 

A.            Client
and HQ are parties to that certain Office Agreement (“Office Agreement”) dated May 6,
2005 in which HQ provides certain services and facilities to you.

 

B.            The
parties desire to amend the terms of the Office Agreement under the following
terms and conditions.

 

NOW, THEREFORE, for and in consideration
of the mutual covenants and promises contained herein and other good and
valuable considerations, the parties agree as follows:

 

1.               Duration will be amended by deleting the entire
section and replacing it with the following verbiage, “Your agreement lasts for
the period stated in it and will then automatically terminate.  In the event you stay in the space after the
termination, you will be bound by the terms and conditions of the original
agreement and a holdover fee of 110% of the standard fee will be charged and
can only be for a duration of 3 months after terminating date on
agreement.  After that period of time you
must either vacate the premises or enter into a new service agreement.”

2.               Bringing your agreement to an end will be amended by
changing the length of termination from ninety (90) days to sixty (60)
days.  For all agreements on a month — to
— month basis shall only need fourteen (14) day’s notice.

3.               When your agreement ends will be amended by charging a
fee of $175 for normal wear and tear if HQ elects to charge client.  The Virtual Office agreement on exiting after
termination will be an option not a mandatory service.

4.               Clause 30 will only apply to the Business Services
Guide.  All fixed recurring costs,
excluding monthly office fee, do not apply.

 

In Witness
Whereof, the parties have executed
this Addendum as of the date first above written.

 

Client:

 

Tranzyme
Inc.

 

	
  By:

  	
  /s/ Richard I. Eisenstadt

  	
   

  
	
  Name:

  	
  Richard I. Eisenstadt

  	
   

  
	
  Title:

  	
  CFO

  	
   

  

 

 

HQ:

 

HQ
GLOBAL WORKPLACES, INC.

 

	
  By:

  	
  /s/ Aaron M. Bittikofer

  	
   

  
	
  Name:

  	
  Aaron M. Bittikofer

  	
   

  
	
  Title:

  	
  General Manager

  	
   

  

 

 

 

	
  

  	
  

  	
  Renewal
  Agreement

  

 

	
  Client Details

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company Name:

  	
   

  	
  Tranzyme

  	
   

  	
  Center:

  	
   

  	
  Durham Imperial

  
	
  Contact Name:

  	
   

  	
  Richard Eisenstadt

  	
   

  	
  Reference No.:

  	
   

  	
  2596841

  

 

[ILLEGIBLE]

 

	
   

  	
   

  	
   

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  12 Months

  	
   

  	
  Months

  	
   

  	
  Months

  	
   

  	
   

  
	
  Office Number

  	
   

  	
  Market Office Fee

  	
   

  	
  Option A

  	
   

  	
  Option B

  	
   

  	
  Option C

  	
   

  	
   

  
	
  441

  	
   

  	
  1,320.00

  	
   

  	
  844.80

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  446

  	
   

  	
  1,010.00

  	
   

  	
  598.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  447

  	
   

  	
  12,240.00

  	
   

  	
  7,833.60

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  448

  	
   

  	
  1,330.00

  	
   

  	
  851.20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  449

  	
   

  	
  1,400.00

  	
   

  	
  896.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  478

  	
   

  	
  810.00

  	
   

  	
  518.40

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  per Month

  	
   

  	
   

  	
   

  	
  11,542.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  USD

  

 

	
  Start Date of Renewal:

  	
   

  	
  December 1, 2009

  

 

Comments:

 

Client will
have a 60 day notice period from the agreement end date. Original terms,
conditions and addendums remain unchanged. (See Addendums A, B and C)

 

Please place an “X” in the shaded box next to your preferred option:

 

	
  Option A:
  I agree

  	
   

  	
  x

  
	
   

  	
   

  	
   

  
	
  Option B:
  I agree

  	
   

  	
  o

  
	
   

  	
   

  	
   

  
	
  Option C:
  I agree

  	
   

  	
  o

  
	
   

  	
   

  	
   

  
	
  I do not
  wish to renew

  	
   

  	
  o

  

 

	
  /s/ Richard I. Eisenstadt

  	
   

  	
  30 Sep 09

  
	
  SIGNED on your behalf (Client)
  Richard I. Eisenstadt

  	
   

  	
  DateQuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.4    
    

[Translation]

LEASE 

Between 

UNIVERSITÉ
DE SHERBROOKE 

(the
"LESSOR") 

and 

TRANZYME
PHARMA INC. 

(the
"LESSEE") 

With
respect to the space in certain buildings belonging to the University 

 
 

  TABLE OF CONTENTS    
    

 

 

					
	 PREAMBLE
	 	 	3	 
	 LEASE AND DESCRIPTION OF PREMISES
	 	 	3	 
	 TERM OF THE LEASE
	 	 	3	 
	 USE OF THE LEASED PREMISES
	 	 	4	 
	 RENT
	 	 	4	 
	 SERVICES
	 	 	5	 
	 LESSOR'S RIGHTS AND OBLIGATIONS
	 	 	7	 
	 LESSEE'S RIGHTS AND OBLIGATIONS
	 	 	7	 
	 REPAIRS, MODIFICATIONS AND IMPROVEMENTS
	 	 	8	 
	 ASSIGNMENT AND SUBLEASE
	 	 	8	 
	 COVENANTS IN THE EVENT OF LOSS
	 	 	8	 
	 INSURANCE
	 	 	9	 
	 LIABILITY—DAMAGE
	 	 	10	 
	 PERMITS AND TAXES
	 	 	10	 
	 RELEASE OF MOVABLE HYPOTHEC
	 	 	11	 
	 ACCESS TO THE LEASED PREMISES
	 	 	11	 
	 CONDITION OF THE PREMISES
	 	 	11	 
	 TERMINATION OF LEASE—DEFAULTS
	 	 	11	 
	 PUBLICATION
	 	 	12	 
	 WAIVER
	 	 	12	 
	 NOTICES AND REQUESTS
	 	 	12	 
	 EXPIRY OF LEASE
	 	 	13	 
	 RENEWAL OPTIONS
	 	 	13	 
	 FORCE MAJEURE
	 	 	13	 
	 INTERPRETATION
	 	 	14	 
	 ARBITRATION
	 	 	14	 
	 SUCCESSORS AND ASSIGNS
	 	 	14	 

 

  

 

 

			
	SCHEDULE 1A	 	CALCULATION OF RENTABLE AREA USING THE BOMA METHOD
	SCHEDULE 1B	 	PLANS AND IDENTIFICATION OF "LEASED PREMISES"
	SCHEDULE 1C	 	AREA OF PREMISES LEASED BY TRANZYME PHARMA AT THE IPS
	SCHEDULE 2A	 	CALCULATION OF RENTABLE AREA USING THE BOMA METHOD
	SCHEDULE 2B	 	PLANS AND IDENTIFICATION OF "LEASED PREMISES"
	SCHEDULE 2C	 	AREA OF PREMISES LEASED BY TRANZYME PHARMA AT THE IPS

 

 

        LEASE
AGREEMENT ("Lease") entered into in Sherbrooke, Province of Quebec, this 7th day of September, 2006. 

 

 

			
	BETWEEN:	 	 UNIVERSITÉ DE SHERBROOKE, a corporation duly incorporated, having its place of business at 2500 boulevard de l'Université, Sherbrooke, Province of Quebec, J1K 2R2, herein
acting and represented by Luce Samoisette, Assistant Vice-Chancellor and Administrative Vice-Rector, duly authorized for the purposes hereof as she so declares;
	

 	
 	
        (hereinafter the "LESSOR")
	
 AND:	
 	
 TRANZYME PHARMA INC., a corporation duly incorporated, having its head office at 3001 12e Avenue Nord, Sherbrooke, Quebec J1H 5N4, herein acting and represented by
Mr. Rich Eisenstadt, Vice-President, Finance, duly authorized for the purposes hereof as he so declares;
	

 	
 	
        (hereinafter the "LESSEE")

 

 

 

 

 
 

  PREAMBLE    
    

        WHEREAS Université de Sherbrooke wishes to lease certain space in the  Institut de
pharmacologie to Transyme Pharma inc. for the purpose, in particular, of broadening and deepening avenues of cooperation, sharing
their respective expertise in chemistry, biochemistry and pharmacology, and mutually developing a better understanding of the industrial and commercial prospects for products of research. 

 NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:  

 
    SECTION 1    
    
    LEASE AND DESCRIPTION OF PREMISES    
    

	1.1
	Subject
to the conditions, covenants and undertakings contained herein, the LESSOR leases to the LESSEE, here present and accepting, a designated part of
the Institut de pharmacologie (the "Building"), on the 3rd floor (hereinafter referred to as the "Leased Premises"), a rentable area of more or less 1055.18 m2, as
more substantially measured in Schedule 1A using the BOMA (Building Owners and Managers Association) measurement method approved on June 21, 1989 by the American National Standards
Institute, Inc. and defined by a blue border on the plan(s), a copy of which is attached hereto as Schedule 1B. The rentable area comprises the space enumerated in Schedule 1C. 

The
Leased Premises are leased "as seen" by the LESSEE. The LESSEE shall assume the cost of any work on or changes or improvements to the Leased Premises as may be required, subject to the provisions
of the Lease. 

1.2    Right of first refusal    

During
the term of the Lease, the LESSEE shall have the right to refuse to lease the optional premises enumerated in Schedule 2C. The LESSEE shall express its desire to exercise said right of
first refusal thirty (30) days following a notice from the LESSOR to the effect that said premises are included in an offer to lease, provided that such premises are made available by the
Faculty of Medicine and Health Sciences. This space represents an additional rentable area of 206.69 m2 measured, in Schedule 2A, using the BOMA measurement method approved on
June 21, 1989 by the American National Standards Institute, Inc.. The plan in Schedule 2B shows the rentable space that the LESSEE could occupy by exercising its right of first
refusal. The annual base rent per square metre will be the same as the rate for the current space on an annualized basis, as set forth in Section 4.3. 

 
 

  SECTION 2    
    
    TERM OF THE LEASE    
    

	2.1
	The
Lease is granted and accepted for a term (hereinafter called "Term") of three (3) years commencing on October 1, 2006 and ending on
September 30, 2009, unless it is delayed, terminated or extended pursuant to the provisions hereof.

	2.2
	Notwithstanding
the Term of the Lease, if the Leased Premises are available before the commencement date of the Lease, the LESSEE may use and occupy them as
soon as they are available; in such circumstances, the LESSEE shall ensure that it does not hinder the construction work being carried out on the Building by the LESSOR or the efficient operation of
the Building. The LESSEE shall be liable for any damage caused by its acts or the acts of its contractors, subcontractors, employees, servants and visitors. 

3

 
 
 

  SECTION 3    
    
    USE OF THE LEASED PREMISES    
    

	3.1
	The
LESSEE shall use and occupy the premises leased under this Lease solely for the purposes of operating a research laboratory in the field of pharmacology
and biomedical chemistry. 

 
 

  SECTION 4    
    
    RENT    
    

	4.1
	The
LESSEE undertakes to pay the LESSOR, for the entire duration of the Lease, except as specifically set forth herein, in lawful currency of Canada, gross
rent of four hundred and forty-eight thousand four hundred and seventy-two dollars and sixty cents ($448,472.60) per year, payable in advance in equal consecutive monthly instalments of
thirty-seven thousand three hundred and seventy-two dollars and seventy-two cents ($37,372.72) each, on the first (1st) day of each month over the duration of the
Lease. The annual base rent is four-hundred and twenty-five dollars and two cents ($425.02) per square metre.

	4.2
	The
gross rent includes the base rent, the LESSOR's proportional share of the operating expenses of the Building and the cost of the electricity used in the
premises leased by the LESSEE. The gross rent does not include, if applicable, the cost of the services mentioned in Section 5 hereof.

	4.3
	Notwithstanding
subsection 4.1, the annual gross rent will be increased annually by a fixed rate of 2%. The rent will be adjusted on
1st day of October of each year of the Term of this Lease.

	4.4
	The
LESSOR shall forward to the LESSEE a notice in writing indicating the rent increase applicable effective the 1st day of October of
each year of the Lease.

	4.5
	The
gross rent stipulated in this section is payable to the LESSOR, without notice or demand, at the following address: 

Université
de Sherbrooke

c/o Service des finances

Section des encaissements

Sherbrooke (Québec) J1K 2R1 

	4.6
	The
federal and provincial taxes are not included in the price of the rent and must therefore be added, if applicable.

	4.6.1
	The
LESSOR's registration number for purposes of the goods and services tax is R108161076.

	4.6.2
	The
LESSOR's registration number for purposes of the Québec sales tax is 1006150744.

	4.7
	All
amounts in arrears payable under the provisions hereof shall bear interest at the Bank of Canada prime rate plus 2% per annum, as of the payment date.
For the purposes hereof, the Bank of Canada prime rate is the rate in effect on the date on which any amount became payable.

	4.8
	The
LESSEE shall not, under any circumstances, have the right to indemnify itself or deduct any amount or effect any set-off against any amount
whatsoever payable under the provisions of this Lease, including, but without limiting the generality of the foregoing, any claim based on any decrease in enjoyment caused by acts committed by
co-lessees or any claim relating to repairs to the Leased Premises. 

4

 
 
 

  SECTION 5    
    
    SERVICES    
    

	5.1
	The
LESSOR agrees to provide at its expense to the LESSEE all the services required for premises leased in a building of this type, including, among other
things, electricity, heating, housekeeping, water supply, etc, subject to the following: 

        5.1.1    Elevators    

The
LESSOR shall provide, at its expense, and maintain in good operating condition, passenger elevators, which shall be in service every day. The LESSOR shall be under no obligation to provide
operators for these elevators and the fact that it may do so from time to time shall not entail any obligation for the LESSOR to continue such service. The LESSEE shall have use of the elevators in
conjunction with all other persons having access to them, but the LESSOR shall not be liable for any damage caused to the LESSEE and its employees, agents, representatives or visitors by such other
persons using the elevators in conjunction with it. 

        5.1.2    Heating and air conditioning    

	(a)
	The
LESSOR, so long as it is able to obtain such service from its main supplier, shall provide heating and air-conditioning service in order to
ensure the LESSEE's comfort in accordance with the usual standards established for buildings of this type. The LESSOR may, at its discretion, install an electricity sub-meter, at the
LESSEE's expense, in order to measure the LESSEE's electricity consumption if, in the LESSOR's opinion, the LESSEE's electricity consumption exceeds the average consumption of the other like lessees.

	(b)
	The
Leased Premises shall be heated and ventilated at the LESSOR's expense during the LESSEE's operating hours. The LESSEE's operating hours are from
8:30 a.m. to 10:30 p.m., Monday to Friday. On weekends, the Leased Premises shall be heated, ventilated and air-conditioned at no additional cost for the LESSEE during the
LESSEE's operating hours from 8:30 a.m. to 5:00 p.m., except for periods when the Leased Premises are not in use, further to notice from the LESSEE, to ensure that building energy costs
are managed effectively. 

        5.1.3    Housekeeping service    

The
LESSOR shall be responsible for providing housekeeping for the Leased Premises (in accordance with its standards and at its expense), except for space leased for storage purposes, provided that
the
LESSEE maintains them in good condition and keeps them available for cleaning at all times after normal business hours. 

        5.1.4    Laundry service    

The
LESSEE shall pay, on top of the gross rent, the cost of using the laundry service, based on the LESSEE's share established at one thousand one hundred and twenty-three dollars ($1,123) per month.
The LESSEE's share is prorated to the number of research laboratories leased (5/24). The LESSOR shall bill the LESSEE the cost of the laundry service on top of the gross rent indicated
in Section 4 hereof. The LESSEE shall have the right and privilege of terminating the laundry service. To exercise this privilege, the LESSEE must give the LESSOR at least one
(1) month's written notice. 

        5.1.5    Use of the distilled water service    

The
LESSEE shall pay, on top of the gross rent, the cost of using the distilled water service, based on the LESSEE's share established at one hundred and fifty dollars ($150) per month. 

5

 

The
LESSEE's share is prorated to the number of research laboratories leased (5/24). The LESSOR shall bill the LESSEE the cost of the laundry service on top of the gross rent indicated
in Section 4 hereof. 

        5.1.6    Use of the Faculté de médecine et des sciences de la santé
store    

The
LESSEE must use the Faculté de medicine et des sciences de la santé store to acquire regulated materials of any kind
used by the LESSEE as part of its research activities. The LESSEE may use the Faculté de médecine et des sciences de la
santé store to acquire laboratory supplies. The LESSOR shall bill the LESSEE the basic cost of the goods, (FOB) at the counter, plus 15%. 

        5.1.7    Liquid nitrogen    

Liquid
nitrogen is available at the Faculté de médecine et des sciences de la santé store, and its use is
subject to the provisions of subsection 5.1.6. The Faculté de médecine et des sciences de la santé store has a bulk tank for filling 1-
to 22-litre containers. 

        5.1.8    Nitrogen gas    

The
LESSOR shall provide the necessary infrastructures to maintain the service. The LESSEE shall pay for its consumption. 

        5.1.9    Hazardous waste management and disposal service    

The
LESSEE must use the LESSOR's hazardous waste management and disposal service to safely remove all hazardous substances or any other waste that could cause risk to the environment. The cost of the
hazardous waste management and disposal service shall be billed monthly to the LESSEE by the LESSOR on top of the gross rent indicated in Section 4 hereof. The cost of the hazardous waste
management and disposal service, which is revised annually, is based on the fee applicable to each waste class, as indicated below: 

 

 

						
	Waste Class (excluding taxes)

 
	 	Applicable fee 	 	 

	 Organic solvents
	 	$	1.60	 	Per kilogram
	 Acid and base solutions
	 	$	1.60	 	Per kilogram
	 Chemical residues eliminated in lab pack
	 	$	227.50	 	For 80 litres
	 Mercury residues ($25 + 30% of management fee)
	 	$	32.50	 	Per kilogram
	 Reagent products ($50 + 30% of management fee)
	 	$	65.00	 	Per kilogram
	 Waxed cardboard barrels for broken glass
	 	$	13.92	 	Per unit
	 Plastic containers for sharp materials (bio-risk)
	 	$	2.70	 	Per unit
	 Plastic containers for sharp materials (chemical)
	 	$	1.95	 	Per unit

 

         5.1.10    Parking    

The
LESSEE may, if it so desires, acquire one or more parking permits from the Centre hospitalier universitaire de Sherbrooke (CHUS). 

        5.1.11    Telephone and Internet service    

The
telephone system infrastructure is provided and maintained by the LESSOR. The operating costs shall be assumed by the LESSEE. The "Internet" service is provided at no cost by the LESSOR. 

6

 
 
 

  SECTION 6    
    
    LESSOR'S RIGHTS AND OBLIGATIONS    
    

	6.1
	The
LESSOR undertakes to keep and maintain the Building and the Leased Premises in a good state of repair and in perfect condition, including the
improvements, additions, decor, heating system and electrical system, and to immediately carry out, at its expense, any repairs required to keep and maintain them in a good state of repair and in
perfect condition.

	6.2
	The
LESSOR shall have the right to interrupt or modify the services it is required to provide under this Lease if repairs, replacements, modifications or
improvements prove necessary further to an accident or an event beyond the LESSOR's control. In such case, the LESSOR undertakes to restore the services involved as soon as possible. However, the
LESSEE may be held responsible for any repairs or replacements which may prove necessary as a result of its negligence or a misuse of the Leased Premises, systems or equipment. In such case, the
LESSOR undertakes to restore the services involved as soon as possible. 

 
 

  SECTION 7    
    
    LESSEE'S RIGHTS AND OBLIGATIONS    
    

7.1    Maintenance of the Leased Premises    

At
all times during the Term and at its own expense, the LESSEE must maintain the Leased Premises and keep them in good condition as would a careful owner, with the exception of deterioration due to
normal wear and tear that does not prevent the appropriate use and enjoyment of the Leased Premises in accordance with the Lease (except for housekeeping, as set forth in subsection 5.1.3 

7.2    Security service    

The
LESSEE is responsible for and shall assume the costs of all security services (guard service) for the Leased Premises. The LESSOR may, at its expense, provide electronic surveillance of the Leased
Premises but shall not be responsible for surveillance of the premises. The LESSOR is responsible for general building security. 

7.3    Glazing and sign breakage    

The
LESSOR shall not assume any responsibility for the breakage of glazing, plate glass or signs on the Leased Premises. However, the LESSOR shall be responsible for ensuring that damage to glass,
partition glass and signs separating the Leased Premises from the other premises of the LESSOR is repaired at its expense, if such breakage is caused from outside the Leased Premises. 

7.4    Signs    

In
accordance with the standards and criteria established by the LESSOR, the LESSEE may, at its expense, provide, install and maintain one or more signs. The LESSEE must obtain the appropriate
permits, if any, at its expense, from the competent authorities. Moreover, before proceeding with such installation, it must obtain prior express permission from the LESSOR. 

7.5    Compliance with laws    

The
LESSEE shall comply, immediately and at its expense, with the requirements of all applicable statutes, rules, ordinances, orders, regulations and by-laws of the municipality, the
provincial and federal governments, and each of their respective departments, commissions or bodies, where applicable, and of any other governmental authority that exercises any jurisdiction over the
Leased Premises, the occupancy of the Leased Premises by the LESSEE, or the conduct of the LESSEE's business in the Leased Premises. 

7

 

7.6    Regulations and guidelines    

	(a)
	The
LESSEE undertakes to comply with the regulations and guidelines of the LESSOR and not to use, and to ensure that its subcontractors, suppliers and
personnel do not use, the name or graphic symbols associated with Université de Sherbrooke for advertising purposes, except by express agreement with the LESSOR.

	(b)
	The
LESSEE undertakes to conduct its laboratory activities and store hazardous materials in accordance with laws, regulations and standards, and in
conformity with the LESSOR's instructions and guidelines. 

7.7    Public order, noise, vibrations, odours    

The
LESSEE shall not use the Leased Premises and shall not allow the Leased Premises to be used for purposes that may disturb public order or cause noise, annoying vibrations or unpleasant odours. 

 
 

  SECTION 8    
    
    REPAIRS, MODIFICATIONS AND IMPROVEMENTS    
    

	8.1
	The
LESSEE may not, without prior written consent from the LESSOR, which consent shall not be withheld unreasonably, make any repairs, changes or
improvements to the Leased Premises either before or during the Term of the Lease.

	8.2
	Any
connection to the electrical system, plumbing or air-conditioning system shall be considered modifications within the meaning of this
section.

	8.3
	The
LESSOR shall have the right to install and maintain in the Leased Premises any and all things that prove necessary, reasonable or useful for the proper
functioning of the Building and its use by any lessee, without compensation in favour of the LESSEE, provided that the enjoyment of the Leased Premises by the LESSEE is not thereby affected. 

 
 

  SECTION 9    
    
    ASSIGNMENT AND SUBLEASE    
    

	9.1
	The
LESSEE may not give, transfer or otherwise assign the Lease or sublet all or part of the Leased Premises, directly or indirectly, without the specific,
written consent of the LESSOR.

	9.2
	The
LESSEE may, after the first complete year of the Lease, terminate the Lease by providing written notice six (6) months prior to the desired
termination date. If the LESSEE exercises this right, it must pay the LESSOR, on top of the gross rent payable in full up to the new expiry date of the Lease, a penalty equal to four months' rent. 

 
 

  SECTION 10    
    
    COVENANTS IN THE EVENT OF LOSS    
    

	10.1
	Should
the Leased Premises be partially damaged as a result of a fire or other cause not attributable to the fault or negligence of the LESSEE, its
officers, agents, employees, visitors or any other person on the Leased Premises with the LESSEE's permission, the LESSOR shall carry out the necessary repairs at its expense and the rent shall then
be reduced and allocated according the usable part of the Leased Premises until the repairs are completed. 

8

 
	10.2
	Should,
as a result of a fire or other cause, the Leased Premises be totally destroyed or rendered totally or substantially uninhabitable or the Building
suffer considerable damage, regardless of the state or condition of the Leased Premises:

	(a)
	if
the LESSOR decides not to repair or rebuild the Leased Premises or the Building, as applicable, it may, within ninety (90) days of the fire or
other loss and without incurring any liability toward the LESSEE, notify the LESSEE in writing of such decision, whereupon the Lease shall terminate immediately. The LESSEE must evacuate the Leased
Premises and deliver them to the LESSOR. The LESSEE'S responsibility for the rent shall cease on the day following the loss; or

	(b)
	if
the LESSOR decides to repair or rebuild the Leased Premises or the Building, as applicable, the LESSEE's responsibility for the rent shall be suspended
from the day following the loss until the day the LESSEE is able to reoccupy the Leased Premises. 

 
 

  SECTION 11    
    
    INSURANCE    
    

	11.1
	The
LESSEE must, at its own expense, purchase and maintain in force, for the Term of the Lease, the following insurance policies covering the LESSOR and
the LESSEE:

	(a)
	Comprehensive
public and civil liability insurance in an amount of no less than five million dollars ($5,000,000) per occurrence, for injury or death of one
or more persons or for property damage arising out of any accident or incident: this insurance policy shall name the LESSOR as additional insured;

	(b)
	All-risk
tenant liability insurance in an amount of no less than one million dollars ($1,000,000) per occurrence; this policy shall name the
LESSOR as additional insured;

	(c)
	Insurance
covering movable property and leasehold improvements, be they paid for by the LESSEE or the LESSOR, located in the Leased Premises against fire
and other perils usually covered by this type of insurance policy, which insurance shall at all times be for the replacement value of the such property and improvements.

	11.2
	These
insurance policies must be purchased from recognized insurance companies and must stipulate that the insurer shall have no right of subrogation
against the LESSOR for any loss or damage covered by such insurance or for payments made to settle claims against the LESSOR or LESSEE covered by such policies or to release the LESSOR or LESSEE from
the liability against which such insurance is maintained. 

Notwithstanding
any provision contained herein, where such insurance would not fully cover any loss or damage because of provisions for deductions (deductible clauses) or because the loss or damage
amount exceeds the coverage under the policy, the LESSOR shall not be liable and the LESSEE shall release the LESSOR from any liability and shall indemnify and hold harmless the LESSOR from any claim
for the portion of the amount of the loss or damage that is not covered. 

The
LESSEE shall obtain from the insurers of such policies an undertaking to notify the LESSOR in writing of any cancellation of such policies no less than ten (10) days before such
cancellation. The LESSEE agrees that in the event that it does not purchase or maintain in force any one of these policies, the LESSOR shall have the right to do so in the LESSEE's stead and pay the
premium thereon, and the LESSEE shall then reimburse the LESSOR for the amount paid for the premium and such reimbursement shall be added to the amount of the rent payable on the first day of the
month following payment of the premium by the LESSOR. 

9

 

The
LESSEE shall provide the LESSOR with proof that the insurance is being maintained in force, as provided herein, as well as proof of the required payment of the premiums and renewal premiums for
such insurance.  

	11.3
	The
LESSEE undertakes not to do anything in the Leased Premises, allow anything or omit anything that may result in increased insurance premiums for the
LESSOR or have the effect of increasing the LESSOR's insurance premiums for the buildings where the Leased Premises are located; if the insurance premiums are so increased, the LESSEE shall pay the
LESSOR, on top of the rent, the amount of any increase in insurance premiums. 

 
 

  SECTION 12    
    
    LIABILITY—DAMAGE    
    

12.1    Damage to the LESSEE's property    

The
LESSOR shall not be liable for any damage to the property of the LESSEE or of other persons who may be in the Leased Premises, or for the loss or theft of any property of the LESSEE or other
persons, except if such damage or loss was caused deliberately or by the negligence of the LESSOR, its employees, servants, agents or representatives, or if such damage resulted from defects and
faults in the Building, or from any other cause for which the LESSOR is responsible hereunder. 

12.2    Damage to persons    

The
provisions of the preceding section concerning damage to the LESSEE's property shall apply to injuries suffered by persons who may be in the Leased Premises. 

12.3    Notice of damage    

The
LESSEE shall, as soon as practicable in the circumstances, notify the LESSOR in the event of fire, defects or sudden damage affecting the Leased Premises. 

12.4    Indemnification of the LESSOR    

The
LESSEE undertakes to indemnify, defend and hold harmless the LESSOR from and against all actions, proceedings and claims arising from an act or omission by the LESSEE or one of its employees,
representatives or servants, during the Term of the Lease. 

 
 

  SECTION 13    
    
    PERMITS AND TAXES    
    

	13.1
	The
LESSEE is responsible for obtaining and paying for all necessary permits and for paying all rental taxes, property and school taxes and the surtax, and
all other similar assessments that may be levied or assessed against the lessees of a building in respect of the Leased Premises or the activities carried on therein by the lessees, directly to the
government authorities. If as a result of amendments to the applicable laws and regulations, such taxes and/or permits become payable by the LESSOR, the LESSEE shall reimburse the cost thereof to the
LESSOR as additional rent, upon simple request from the LESSOR with supporting documentation. 

10

 
 
 

  SECTION 14    
    
    RELEASE OF MOVABLE HYPOTHEC    
    

	14.1
	The
parties agree to require that before any work begins in the Leased Premises, all contractors or subcontractors give the LESSOR a notice of waiver and
release for any privilege or right of privilege that could then or in the future exist for the work or labour or materials supplied or to be supplied under any contract or subcontract. 

 
 

  SECTION 15    
    
    ACCESS TO THE LEASED PREMISES    
    

	15.1
	The
LESSOR, as well as its duly authorized agents and representatives, may, at any time and without incurring any liability toward LESSEE, enter the Leased
Premises in order to carry out modifications, repairs, inspections or meter readings. No prior notice in writing shall be required if the LESSOR is placed in an emergency situation, but the LESSOR
shall inform the LESSEE immediately. No prior notice shall be required from the LESSOR when the latter wishes to examine the Leased Premises in order to verify the condition of the Leased Premises,
the proper maintenance thereof and compliance with the applicable laws and regulations.

	15.2
	The
LESSEE shall allow any person wishing to lease the Leased Premises to visit them on twenty-four (24) hours' prior notice during the
last six (6) months of the Term of the Lease or its renewal, during regular business hours. 

 
 

  SECTION 16    
    
    CONDITION OF THE PREMISES    
    

	16.1
	Within
thirty (30) days of the LESSEE taking possession for the Leased Premises, the LESSEE shall inform the LESSOR of any faults or defects in or
affecting the Leased Premises that are preventing or limiting their use, and failing such notice, it shall be presumed for all purposes, on the date on which the Term commences, that the LESSEE has
accepted the Leased Premises in the condition in which they were found at that time; the LESSOR shall no longer have as of that time any obligation with respect to faults or defects. 

 
 

  SECTION 17    
    
    TERMINATION OF LEASE—DEFAULTS    
    

	17.1
	This
Lease shall, at the discretion of the LESSOR, be terminated as a matter of right and the LESSOR may, without notice or formal demand, repossess and
use the Leased Premises placed at the disposal of the LESSEE, upon the occurrence of any one of the events listed hereinafter or of events of a similar nature:

	(a)
	the
rent or any additional rent is not paid within thirty (30) days of the date on which it was payable;

	(b)
	the
LESSEE discontinues its operations or ceases to use the Leased Premises for the purposes defined in Section 3;

	(c)
	the
LESSEE becomes insolvent, makes an authorized assignment of its property or is put into bankruptcy or liquidation. The LESSOR shall give the LESSEE
thirty (30) days to rectify the situation; 

11

 

 

	(d)
	any
event of such nature that the services set forth in this Lease cannot be provided to the LESSEE;

	(e)
	the
LESSEE fails to fulfill any of the covenants and conditions of the Lease.

	17.2
	In
the event of any default by the LESSEE, the LESSOR may, at its option, give the LESSEE notice in writing of its intention to terminate the Lease. 

 
 

  SECTION 18    
    
    PUBLICATION    
    

	18.1
	This
Lease may not be published at length without the express written consent of the LESSOR. Should the Lease be published in breach of this section, the
LESSEE undertakes to execute and sign any necessary documents to cancel such illegal publication. If the LESSEE wishes to have certain extracts of the Lease published, it must have a memorial of Lease
prepared, at its expense, and must submit such memorial to the LESSOR for prior approval and provide a copy to the LESSOR upon publication thereof. 

 
 

  SECTION 19    
    
    WAIVER    
    

	19.1
	Waivers
or amendments to the terms and conditions of the Lease may only be made expressly in writing, subject, however, to the LESSOR's right to establish
rules and guidelines, as set forth hereinafter, and without prejudice to such right.

	19.2
	The
failure of one party to enforce any covenant or condition of the Lease or to exercise any of its rights hereunder shall not constitute a waiver or
relinquishment for the future of any covenant, condition or right under the Lease, which shall continue in full force and effect.

	19.3
	Subordination:
The LESSOR and the LESSEE consent to the notice of waiver described in Schedule 3. 

 
 

  SECTION 20    
    
    NOTICES AND REQUESTS    
    

	20.1
	Any
notice or request under this Lease, by the LESSOR or the LESSEE, shall be deemed to have been validly made when it is made in writing, except as
expressly provided otherwise, and delivered in person or sent by registered mail, postage prepaid and addressed to:

	(a)
	in
the case of the LESSOR 

Ms. Luce
Samoisette

Assistant Vice-Chancellor and Administrative Vice-Rector

Pavillon George-Cabana

Université de Sherbrooke

2500, boulevard de l'Université

Sherbrooke (Québec) J1K 2R1 

12

 

	(b)
	In
the case of the LESSEE 

Mr. Rich
Eisenstadt

Vice-President Finance and Chief Financial Officer

3001, 12e Avenue Nord

Sherbrooke (Québec) J1H 5N4 

	20.2
	The
LESSOR or the LESSEE may from time to time name another representative. At such time, it will be required to inform the representative of the other
party in writing. 

 
 

  SECTION 21    
    
    EXPIRY OF LEASE    
    

	21.1
	On
the date the Lease expires, the LESSEE shall give the LESSOR peaceable possession of the Leased Premises with all the improvements, modifications,
changes or construction carried out at any time during the Term of this Lease without any compensation for the LESSOR, and the whole shall be delivered in a good state of repair, subject to normal
wear and tear.

	21.2
	Unless
agreed to by the LESSOR's representative in advance, the LESSEE shall dismantle all shelves and their accessories that were installed by it. In
addition, the LESSEE shall leave the Leased Premises clean, removing all personal property, the materials belonging to it and all waste.

	21.3
	Notwithstanding
all the other provisions of the Lease, the LESSEE, at the end of or after the Lease, shall not remove from the Leased Premises any fixed
dividers, plumbing and heating equipment, or telephone or electrical wire or line, and it shall not be entitled to any compensation in return. If the LESSOR wishes to remove them for its own purposes,
it must do so at its own expense and without any claim against the LESSEE. 

 
 

  SECTION 22    
    
    RENEWAL OPTIONS    
    

	22.1
	If
the LESSEE is not in default under any of the terms and conditions hereof, it shall have the right and the privilege of renewing this LEASE for a term
of one (1) year. To exercise this privilege, the LESSEE must give the LESSOR no less than six (6) months' written notice prior to expiry of this Lease of its intention to renew the
Lease. The renewed Lease shall be on the same terms and conditions as those set forth herein, except for the rent, which will be agreed upon between the parties, and the renewal option set forth in
this section.

	22.2
	If
the LESSEE does not give the notice set forth in Section 22.1 hereof, the LESSEE shall be considered at such time to have chosen not to renew
this Lease. There will not be any automatic renewal, and any occupancy of the Leased Premises after such date by the LESSEE shall not have the effect of extending the Term of the Lease or renewing the
Lease for any period whatsoever.

	22.3
	The
rent provided for the last year of this Lease will be increased by 2% for such renewal year. 

 
 

  SECTION 23    
    
    FORCE MAJEURE    
    

	23.1
	The
LESSOR shall not be liable for any failure to perform any of its obligations hereunder or responsible for any damage or loss caused to the LESSEE, if
said failure, damage or loss is caused by a fortuitous event, an event of force majeure, natural causes, acts by enemies of Canada and Quebec, war, strike, fire or other casualty or any similar
circumstance, any circumstance or act attributable to the LESSEE or any emergency or cause beyond the control of the LESSOR. 

13

 
 
 

  SECTION 24    
    
    INTERPRETATION    
    

	24.1
	This
Lease shall be construed and enforced in accordance with the laws of the province of Quebec. If any condition or provision of this Lease is declared
illegal, invalid or unenforceable, it shall be considered to be independent of this Lease and as not forming part thereof, and the other provisions and conditions shall remain in full force and effect
and shall be binding on the parties hereto as if the illegal or invalid or unenforceable provisions had never been part of this Lease.

	24.2
	The
headings, section numbers, clause numbers and table of contents of this Lease have been inserted for ease of reading only and do not define or limit,
interpret or describe, in any way, the scope or intention of the said sections or clauses of this Lease, nor do they affect it in way whatsoever.

	24.3
	All
the schedules to this Lease form an integral part hereof as if they were stated at length. 

 
 

  SECTION 25    
    
    ARBITRATION    
    

	25.1
	Recourse to arbitration governed by the Code of Civil Procedure  

If
the Parties are unable to agree concerning certain clauses or sections of this Lease, the Parties agree to submit to arbitration, the procedure and regulation of which shall be subject to the
provisions of articles 940 and following of the Code of Civil Procedure of the province of Quebec.  

	25.2
	Arbitral award  

The
arbitral award shall be binding on the Parties, which may not contest such award once it is issued.  

	25.3
	Arbitration costs  

Each
Party must assume the costs incurred to present its evidence; all other expenditures and costs related to the arbitration are to be shared equally by the Parties. 

 
 

  SECTION 26    
    
    SUCCESSORS AND ASSIGNS    
    

	26.1
	The
Lease shall enure to the benefit of the Parties hereto, as well as their respective heirs, executors, administrators, successors, assigns and legal
representatives, and shall be binding on them. However, this section shall not have the effect of allowing the LESSEE to sublet the Leased Premises, or assign or transfer its interests in the Lease,
except as specifically set out and permitted in the Lease. 

14

 

        IN WITNESS WHEREOF, the LESSOR and the LESSEE have executed this Lease as follows:

 

 

					
	Sherbrooke, on September 7, 2006	 	UNIVERSITY OF SHERBROOKE
	

 	
 	
By:	
 	
/s/ Luce Samoisette (signed)

  Assistant Vice-Chancellor and Administrative Vice-Rector
	
Chantal Couture

  Witness (name)	
 	
/s/ Chantal Couture

  Witness (signature)
	
Sherbrooke, on September 6, 2006	
 	
TRANSYME PHARMA INC.
	

 	
 	
By:	
 	
/s/ Rich Eisenstadt

  Rich Eisenstadt, Vice-president Finance and Chief Financial Officer
	
Helmut Thomas

  Witness (name)

SVP Research and Development

Transyme Pharma Inc.	
 	
/s/ Helmut Thomas

  Witness (signature)

 

 15

 

 
 

  Schedule 1A    
    

 Université de Sherbrooke  

 CALCULATION OF RENTABLE AREA USING THE BOMA METHOD  

 

 

			
	Building identification: Z5 Institut de pharmacologie	 	 Date: August 16, 2006

 

 

 

																									
	1 	 	2 	 	3 	 	4 	 	5 	 	6 	 	7 	 	8 	 	9 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	USABLE AREA 	 
	Level

 
	 	Built-up area 	 	Gross area 	 	Vertical

penetrations 	 	(3-4)=5

Rentable

floor space 	 	Space I.D. 	 	Office space 	 	Retail space 	 	Building

common

area 	 
	 

 0
	 	 Animal supply facility
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	140.93	 	 	0.00	 	 	0.00	 
	 

	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	159.17	 	 	0.00	 	 	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#5	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#6	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#7	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#8	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	347.79	 	 	29.82	 	 	317.97	 	 	 	 	 	300.10	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 1
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	1,365.75	 	 	135.86	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#6	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	1,903.09	 	 	61.88	 	 	1,841.21	 	 	 	 	 	1,365.75	 	 	0.00	 	 	135.86	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 2
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	1,466.56	 	 	0.00	 	 	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1,975.58	 	 	94.6	 	 	1,880.98	 	 	 	 	 	1,466.56	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 3
	 	 Transyme Pharma Inc.
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	690.02	 	 	0.00	 	 	0.00	 
	 
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	789.16	 	 	0.00	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	0.00	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	1,969.44	 	 	88.31	 	 	1,881.13	 	 	 	 	 	1,479.18	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 4
	 	 	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	23.73	 	 	0.00	 	 	989.18	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1,056.6	 	 	29.17	 	 	1,027.43	 	 	 	 	 	23.73	 	 	0.00	 	 	989.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 TOTAL
	 	 	 	 	7,252.5	 	 	303.78	 	 	6,948.72	 	 	 	 	 	4,635.32	 	 	0.00	 	 	1,125.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 Service des immeubles/Sonia Royer 

1

 

 

 

																		
	10 	 	11 	 	12 	 	13 	 	14 	 	15 	 
	 
	 	 
	 	 
	 	BASE RENTABLE AREAS 	 
	(7+8+9)=10

Usable floor area 	 	(5-10)=11

Floor common

area 	 	(5/10)=12

Floor R/U factor 	 	(7x12)=13

Office space 	 	(8x12)=14

Retail area 	 	(9x12)=15

Building

common

area 	 
	 	 

 140.93
	 	 	 	 	 	 	 	 	149.32	 	 	0.00	 	 	0.00	 
	 	 

 159.17
	 	 	 	 	 	 	 	 	168.65	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 300.10
	 	 	17.87	 	 	1.06	 	 	317.97	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,501.61
	 	 	 	 	 	 	 	 	1,674.62	 	 	0.00	 	 	166.59	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,501.61
	 	 	339.6	 	 	1.23	 	 	1,674.62	 	 	0.00	 	 	166.59	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,466.56
	 	 	 	 	 	 	 	 	1,880.98	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,466.56
	 	 	414.42	 	 	1.28	 	 	1,880.98	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 690.02
	 	 	 	 	 	 	 	 	877.52	 	 	0.00	 	 	0.00	 
	 	 789.16
	 	 	 	 	 	 	 	 	1,003.61	 	 	0.00	 	 	0.00	 
	 	 0.00
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 0.00
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,479.18
	 	 	401.95	 	 	1.27	 	 	1,881.13	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,012.91
	 	 	 	 	 	 	 	 	24.07	 	 	0.00	 	 	1,257.98	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 1,012.91
	 	 	14.52	 	 	1.01	 	 	24.07	 	 	0.00	 	 	1,003.36	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 5,760.36
	 	 	1,188.36	 	 	 	 	 	5,778.77	 	 	0.00	 	 	1,169.95	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 2

 

 

 

															
	16 	 	17 	 	18 	 	19 	 	20 	 
	 
	 	 
	 	RENTABLE AREA 	 
	(sum13+som14+som15)=16

Building rentable area 	 	16/(16-som15)=17

Building R/U factor 	 	(13x17)=18

Office space 	 	(14x17)=19

Retail area 	 	(18+19)=20

Total rentable area 	 
	 	 

	 	 	 	 	 	179.55	 	 	0.00	 	 	179.55	 
	 	 

	 	 	 	 	 	202.79	 	 	0.00	 	 	202.79	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	382.34	 	 	0.00	 	 	382.34	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,013.66	 	 	0.00	 	 	2,013.66	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,013.66	 	 	0.00	 	 	2,013.66	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	2,261.80	 	 	0.00	 	 	2,261.80	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	2,261.80	 	 	0.00	 	 	2,261.80	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	1,055.18	 	 	0.00	 	 	1,055.18	 
	 	 
	 	 	 	 	 	1,206.79	 	 	0.00	 	 	1,206.79	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,261.98	 	 	0.00	 	 	2,261.98	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	28.94	 	 	0.00	 	 	28.94	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	28.94	 	 	0.00	 	 	28.94	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 6,948.72
	 	 	1.20	 	 	6,948.72	 	 	0.00	 	 	6,948.72	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 3

 
 

  Schedule 1C    
    

 Université de Sherbrooke  

Faculté
de médecine et des sciences de la santé 

Area
of Premises Leased By Tranzyme Pharma at the IPS 

 

 

								
	Floor

 
	 	Premises 	 	Net area 	 
	 

 Usable area of premises under current lease
	 	 	 	 	 	 	 
	 

 03
	 	 	Z5-3015	 	 	104.00	 
	 

 03
	 	 	Z5-3019	 	 	100.55	 
	 

 03
	 	 	Z5-3020	 	 	1.71	 
	 

 03
	 	 	Z5-3021	 	 	1.74	 
	 

 03
	 	 	Z5-3022	 	 	0.69	 
	 

 03
	 	 	Z5-3023	 	 	27.55	 
	 

 03
	 	 	Z5-3025	 	 	30.83	 
	 

 03
	 	 	Z5-3026	 	 	102.23	 
	 

 03
	 	 	Z5-3027	 	 	1.73	 
	 

 03
	 	 	Z5-3028	 	 	13.84	 
	 

 03
	 	 	Z5-3035	 	 	12.11	 
	 

 03
	 	 	Z5-3036	 	 	12.23	 
	 

 03
	 	 	Z5-3037	 	 	12.06	 
	 

 03
	 	 	Z5-3038	 	 	12.22	 
	 

 03
	 	 	Z5-3039	 	 	12.17	 
	 

 03
	 	 	Z5-3040	 	 	100.51	 
	 

 03
	 	 	Z5-3041	 	 	1.75	 
	 

 03
	 	 	Z5-3042	 	 	1.73	 
	 	 	 	 	 	 	 
	 Subtotal
	 	 	 	 	 	549.65	 
	 	 	 	 	 	 	 
	 

 Usable area of added premises
	 	 	 	 	 	 	 
	 

 03
	 	 	Z5-3005	 	 	12.14	 
	 

 03
	 	 	Z5-3007	 	 	11.99	 
	 

 03
	 	 	Z5-3008	 	 	12.11	 
	 

 03
	 	 	Z5-3051	 	 	104.13	 
	 	 	 	 	 	 	 
	 Subtotal
	 	 	 	 	 	140.37	 
	 	 	 	 	 	 	 
	 

 Total usable area
	 	 	 	 	 	690.02	 
	 	 	 	 	 	 	 

 

  

 

 

			
	                    August 16, 2006	 	Service des immeubles/Sonia Royer

 

 

 

 
 

  Schedule 2A    
    

 Université de Sherbrooke  

 CALCULATION OF RENTABLE AREA USING THE BOMA METHOD  

 

 

			
	Building identification: Z5 Institut de pharmacologie	 	 Date: August 16, 2006

 

 

 

																									
	1 	 	2 	 	3 	 	4 	 	5 	 	6 	 	7 	 	8 	 	9 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	USABLE AREA 	 
	Level

 
	 	Built-up area 	 	Gross area 	 	Vertical

penetrations 	 	(3-4)=5

Floor rental

area 	 	Space I.D. 	 	Office space 	 	Retail space 	 	Building

common

area 	 
	 

 0
	 	 Animal supply facility
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	140.93	 	 	0.00	 	 	0.00	 
	 

	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	159.17	 	 	0.00	 	 	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	1,365.75	 	 	135.86	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#5	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#6	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#7	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#8	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	347.79	 	 	29.82	 	 	317.97	 	 	 	 	 	300.10	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 1
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#6	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	1,903.09	 	 	61.88	 	 	1,841.21	 	 	 	 	 	1,365.75	 	 	0.00	 	 	135.86	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 2
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	1,466.56	 	 	0.00	 	 	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1,975.58	 	 	94.6	 	 	1,880.98	 	 	 	 	 	1,466.56	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 3
	 	 Tranzyme Pharma Inc.
	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	825.18	 	 	0.00	 	 	0.00	 
	 
	 	 Pharmacology
	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	654.00	 	 	0.00	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	0.00	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	1,969.44	 	 	88.31	 	 	1,881.13	 	 	 	 	 	1,479.18	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 4
	 	 	 	 	 	 	 	 	 	 	 	 	 	#1	 	 	23.73	 	 	0.00	 	 	989.18	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#2	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#3	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	#4	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1,056.6	 	 	29.17	 	 	1,027.43	 	 	 	 	 	23.73	 	 	0.00	 	 	989.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 TOTAL
	 	 	 	 	7,252.5	 	 	303.78	 	 	6,948.72	 	 	 	 	 	4,635.32	 	 	0.00	 	 	1,125.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 Service des immeubles/Sonia Royer 

1

 

 

 

																		
	10 	 	11 	 	12 	 	13 	 	14 	 	15 	 
	 
	 	 
	 	 
	 	BASICE RENTABLE AREAS 	 
	(7+8+9)=10

Floor usable area 	 	(5-10)=11

Floor common

area 	 	(5/10)=12

Floor R/U factor 	 	(7x12)=13

Office space 	 	(8x12)=14

Retail area 	 	(9x12)=15

Building

common

area 	 
	 	 

 140.93
	 	 	 	 	 	 	 	 	149.32	 	 	0.00	 	 	0.00	 
	 	 

 159.17
	 	 	 	 	 	 	 	 	168.65	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 300.10
	 	 	17.87	 	 	1.06	 	 	317.97	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,501.61
	 	 	 	 	 	 	 	 	1,674.62	 	 	0.00	 	 	166.59	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,501.61
	 	 	339.6	 	 	1.23	 	 	1,674.62	 	 	0.00	 	 	166.59	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,466.56
	 	 	 	 	 	 	 	 	1,880.98	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 0.00
	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,466.56
	 	 	414.42	 	 	1.28	 	 	1,880.98	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 825.18
	 	 	 	 	 	 	 	 	1,049.41	 	 	0.00	 	 	0.00	 
	 	 654.00
	 	 	 	 	 	 	 	 	831.72	 	 	0.00	 	 	0.00	 
	 	 0.00
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 0.00
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 1,479.18
	 	 	401.95	 	 	1.27	 	 	1,881.13	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 1,012.91
	 	 	 	 	 	 	 	 	24.07	 	 	0.00	 	 	1,257.98	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

 1,012.91
	 	 	14.52	 	 	1.01	 	 	24.07	 	 	0.00	 	 	1,003.36	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 5,760.36
	 	 	1,188.36	 	 	 	 	 	5,778.77	 	 	0.00	 	 	1,169.95	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 2

 

 

 

															
	16 	 	17 	 	18 	 	19 	 	20 	 
	 
	 	 
	 	RENTABLE AREAS 	 
	(sum13+som14+som15)=16

Building rentable area 	 	16/(16-som15)=17

Building R/U factor 	 	(13x17)=18

Office space 	 	(14x17)=19

Retail area 	 	(18+19)=20

Total rentable area 	 
	 	 

	 	 	 	 	 	179.55	 	 	0.00	 	 	179.55	 
	 	 

	 	 	 	 	 	202.79	 	 	0.00	 	 	202.79	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	382.34	 	 	0.00	 	 	382.34	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,013.66	 	 	0.00	 	 	2,013.66	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,013.66	 	 	0.00	 	 	2,013.66	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	2,261.80	 	 	0.00	 	 	2,261.80	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	0.00	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	2,261.80	 	 	0.00	 	 	2,261.80	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	1,261.87	 	 	0.00	 	 	1,261.87	 
	 	 
	 	 	 	 	 	1,000.10	 	 	0.00	 	 	1,000.10	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 
	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	2,261.98	 	 	0.00	 	 	2,261.98	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	28.94	 	 	0.00	 	 	28.94	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	 	 	 	0.00	 	 	0.00	 
	 	 

	 	 	 	 	 	28.94	 	 	0.00	 	 	28.94	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 6,948.72
	 	 	1.20	 	 	6,948.72	 	 	0.00	 	 	6,948.72	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 3

 
 

  Schedule 2C    
    

 Université de Sherbrooke  

Faculté
de médecine et des sciences de la santé 

Area
of Premises Leased by Tranzyme Pharma at the IPS 

 

 

								
	Floor

 
	 	Premises 	 	Net area 	 
	 

 Usable area of the premises under the current lease
	 	 	 	 	 	 	 
	 

 03
	 	 	Z5-3015	 	 	104.00	 
	 

 03
	 	 	Z5-3019	 	 	100.55	 
	 

 03
	 	 	Z5-3020	 	 	1.71	 
	 

 03
	 	 	Z5-3021	 	 	1.74	 
	 

 03
	 	 	Z5-3022	 	 	0.69	 
	 

 03
	 	 	Z5-3023	 	 	27.55	 
	 

 03
	 	 	Z5-3025	 	 	30.83	 
	 

 03
	 	 	Z5-3026	 	 	102.23	 
	 

 03
	 	 	Z5-3027	 	 	1.73	 
	 

 03
	 	 	Z5-3028	 	 	13.84	 
	 

 03
	 	 	Z5-3035	 	 	12.11	 
	 

 03
	 	 	Z5-3036	 	 	12.23	 
	 

 03
	 	 	Z5-3037	 	 	12.06	 
	 

 03
	 	 	Z5-3038	 	 	12.22	 
	 

 03
	 	 	Z5-3039	 	 	12.17	 
	 

 03
	 	 	Z5-3040	 	 	100.51	 
	 

 03
	 	 	Z5-3041	 	 	1.75	 
	 

 03
	 	 	Z5-3042	 	 	1.73	 
	 	 	 	 	 	 	 
	 Subtotal
	 	 	 	 	 	549.65	 
	 	 	 	 	 	 	 
	 

 Usable area of the premises added to the current lease
	 	 	 	 	 	 	 
	 

 03
	 	 	Z5-3005	 	 	12.14	 
	 

 03
	 	 	Z5-3007	 	 	11.99	 
	 

 03
	 	 	Z5-3008	 	 	12.11	 
	 

 03
	 	 	Z5-3051	 	 	104.13	 
	 	 	 	 	 	 	 
	 Subtotal
	 	 	 	 	 	140.37	 
	 	 	 	 	 	 	 
	 

 Usable area of optional premises
	 	 	 	 	 	 	 
	 

 03
	 	 	Z5-3016	 	 	16.18	 
	 

 03
	 	 	Z5-3045	 	 	15.16	 
	 

 03
	 	 	Z5-3047	 	 	100.40	 
	 

 03
	 	 	Z5-3048	 	 	1.69	 
	 

 03
	 	 	Z5-3049	 	 	1.73	 
	 	 	 	 	 	 	 
	 Subtotal
	 	 	 	 	 	135.16	 
	 	 	 	 	 	 	 
	 

 Total usable area
	 	 	 	 	 	825.18	 
	 	 	 	 	 	 	 

 

  

 

 

			
	                    August 16, 2006	 	Service des immeubles/Sonia Royer

 

 

 

 
 

  ADDENDUM 1 TO THE LEASE    
    
    Between    
    
    UNIVERSITÉ DE SHERBROOKE    
    
    (the "LESSOR")    

    and    
    
    TRANZYME PHARMA INC.    
    
    (the "LESSEE")    
    
    With respect to the space in certain buildings belonging to the University    

 
        ADDENDUM 1 TO THE LEASE ("Addendum") entered into in Sherbrooke, Province of Quebec, on November 8, 2006. 

 

 

			
	 
	 	 

	BETWEEN:	 	UNIVERSITÉ DE SHERBROOKE, a corporation duly incorporated, having its place of business at 2500 boulevard de l'Université, Sherbrooke, Province of Quebec, J1K 2R2, herein
acting and by Luce Samoisette, Assistant Vice-Chancellor and Administrative Vice-Rector, duly authorized for the purposes hereof as she so declares;
	

 	
 	
                (hereinafter the "LESSOR")
	
 AND:	
 	

TRANZYME PHARMA INC., a corporation duly incorporated, having its head office at 3001 12e Avenue Nord, Sherbrooke, Quebec J1H 5N4, herein acting and represented by Mr. Rich Eisenstadt, Vice-President,
Finance and Chief Financial Officer, duly authorized for the purposes hereof as he so declares;
	

 	
 	
                (hereinafter the "LESSEE")

 

         WHEREAS the LESSOR has leased to the LESSEE a designated part of the Institut de pharmacologie on the 3rd floor under
the terms of a lease under private signature executed by the LESSOR on the seventh of September two thousand and six (September 7, 2006) and by the LESSEE on the sixth of September two thousand
and six (September 6, 2006) 

(hereinafter
the LEASE") 

        WHEREAS the LESSOR declares that it has the right to execute this lease ADDENDUM as owner of the building in which the leased premises are
located. 

        NOW,
THEREFORE, THE PARTIES AGREE AS FOLLOWS: 

1.     CHANGES TO LEASE  

The
LESSOR and the LESSEE agree to amend the Lease as follows: 

	1.1
	In
Schedule 1c), area of the leased premises, correct: 

Tranzyme
Pharma Inc. will occupy room Z5-3009 instead of room Z5-3008 for an equivalent area of 12.11 m2.  

	1.2
	In
Section 1.1, correct: 

As
of October 1, 2006, room Z5-3016 will be occupied by the LESSEE. Consequently, an area of 16.18 m2 will have to be added to the total area of 1055.18
m2 indicated in Section 1.1 of the Lease. The new area will therefore be 1,071.36 m2 more or less under the BOMA (Building Owners and Managers Association)
measurement method approved on June 21, 1989 by the American National Standards Institute, Inc.  

	1.3
	In
Section 4.1, correct: 

As
of October 1, 2006, the rent will be increased by six thousand eight hundred and seventy-six dollars and eighty-two cents ($6,876.82), an amount equal to the annual
base rent of $425.02 X the addition of room Z5-3016 measuring 16.18 m2. The gross rent will therefore become four hundred and fifty-five thousand three hundred
and forty-nine dollars and thirty-six cents (455,349.36) per year, payable in advance in equal consecutive monthly instalments of thirty-seven thousand nine hundred and
forty-five dollars and seventy-eight cents ($37,945.78).  

	1.4
	In
Section 5.1.4, rescind: 

This
section is rescinded, as the laundry service is not used by the LESSEE, who is therefore not to be billed for it. 

2.     RATIFICATION OF THE LEASE:  

All
the other terms and conditions stipulated in the Lease contract which have not been hereby amended shall continue to apply during the Term of this ADDENDUM, mutatis
mutandis. 

        IN
WITNESS WHEREOF, the LESSOR and the LESSEE have executed this Lease Addendum as follows: 

 

 

						
	 	 
	 	 
	 	 

	 	Sherbrooke, 8 November 2006	 	UNIVERSITÉ DE SHERBROOKE
	
 	

 	
 	
By:	
 	
/s/ Luce Samoisette

  Luce Samoisette, Assistant Vice-Chancellor and

Administrative Vice-Rector
	
 	
 Chantal Couture

  Witness (name)	
 	
 	
 	
/s/ Chantal Couture

  Witness (signature)
	
 	
 Sherbrooke, 01 Nov. 2006	
 	
TRANZYME PHARMA INC.
	
 	

 	
 	
By:	
 	
/s/ Rich Eisenstadt

  Rich Eisenstadt, Vice-President

Finance and Chief Financial Officer
	
 	
 Ginette Turcotte

  Witness (name)	
 	
 	
 	
/s/ Ginette Turcotte

  Witness (signature)

 

 

 
[Translation] 

RENEWAL
OF LEASE AGREEMENT 

between 

UNIVERSITÉ DE SHERBROOKE
  (The "LESSOR") 

and

TRANZYME PHARMA INC.
  (The "LESSEE") 

with
respect to the spaces in the buildings belonging to Université 

 

        RENEWAL OF LEASE AGREEMENT ("Agreement") entered into in Sherbrooke, Province of Quebec. 

 

 

			
	BETWEEN:	 	 UNIVERSITÉ DE SHERBROOKE, a corporation duly incorporated, having its place of business at 2500 boulevard de l'Université, Sherbrooke, Province of Quebec, J1K 2R2, herein
acting and represented by Joanne Roch, Vice-Rector of Administration, duly authorized for the purposes hereof as she so declares;
	

 	
 	
            (hereinafter the "LESSOR")
	
 AND:	
 	
 TRANZYME PHARMA INC., a corporation duly incorporated, having its head office at 3001 12e Avenue Nord, Sherbrooke, Quebec J1H 5N4, herein acting and represented by
Mr. Rich Eisenstadt, Vice-President, Finance, duly authorized for the purposes hereof as he so declares;
	

 	
 	
            (hereinafter the "LESSEE")

 

         hereinafter
referred to as the "Parties" 

 
 

  PREAMBLE    
    

        WHEREAS the parties entered into a lease agreement ("Lease") executed on September 6, 2006 by the LESSEE and on
September 7, 2006 by the LESSOR. 

        WHEREAS
an addendum to this Lease was executed on November 1, 2006 by the LESSEE and on November 8, 2006 by the LESSOR. 

        WHEREAS
the parties wish to renew this Lease which terminated on September 30, 2009, according to the following terms and conditions: 

        NOW,
THEREFORE, THE PARTIES AGREE AS FOLLOWS: 

	1.
	The
Rental Agreement shall be for a term of 2 years.

	2.
	If
the LESSEE is not in default under any of the terms and conditions hereof, it shall have the right and privilege to renew this Agreement for a one
(1) year term. To avail itself of this privilege, the LESSEE shall give the LESSOR written notice of its intention to renew this Agreement at least three (3) months before this Agreement
expires. The renewed Agreement shall be under the same terms and conditions as those stipulated herein, except for the rent which shall be agreed upon between the parties and the renewal option
provided herein.  

If
the LESSEE does not give the notice provided in section 2 hereof, the LESSEE shall then be considered as having chosen not to renew this Agreement. There shall not be any tacit renewal and
occupancy of the Leased Premises after this date by the LESSEE shall not have the effect of extending the term of the Agreement or renewing the Agreement for any time period whatsoever. 

	3.
	The
leasable area shall be 944.71 m2, as appears in Schedule 1A and 1B at the cost of $442.19/ m2 for an annual rent of
$417,741.31 before applicable taxes. The cost per m2 shall be fixed for the first two years and a 2% increase shall apply to the cost per m2 for the third year, if
applicable.

	4.
	The
LESSOR offers the LESSEE a space expansion option for a laboratory, an office and for Room 3045 if these spaces become available, according to the
same terms and conditions as the other spaces provided in the Agreement. If any of the spaces become available, the LESSOR shall notify the LESSEE in writing and the latter shall have 30 days
to confirm its decision in writing.

	5.
	The
LESSEE agrees to pay a sum of $65,000 to Université for every year of the Agreement to support a collaboration project with researchers
from the Institut de pharmacologie de Sherbrooke (IPS). The first instalment shall be transferred to IPS on March 1, 2010, the second instalment on March 1, 2011 and the third instalment
on March 1, 2012 if the LESSEE pursues its renewal option for an additional year.

	6.
	All
other terms and conditions stipulated in the Lease which are not amended by this Agreement shall continue to apply during the term hereof. 

        IN
WITNESS WHEREOF, the LESSOR and the LESSEE have signed this Agreement in the following manner: 

 

 

					
	Sherbrooke, February 11, 2010	 	 UNIVERSITÉ DE SHERBROOKE
	

 	
 	
by:	
 	
/s/ Joanne Roch

  Joanne Roch

Vice-Rector of Administration
	
 Chantal Couture

  Witness (name)	
 	
by:	
 	
/s/ Chantal Couture

  Witness (signature)
	
 Sherbrooke, February 22, 2010	
 	
 TRANZYME PHARMA INC.
	

 	
 	
by:	
 	
/s/ Rich Eisenstadt

  Rich Eisenstadt, Vice-President, Finance
	
 Sally Puckett

  Witness (name)	
 	
by:	
 	
/s/ Sally Puckett

  Witness (signature)

 

 

 

 
 

  Schedule 1A    
    

 Université de Sherbrooke  

Faculty
of Medicine and Health Sciences 

 
 

  Area of premised leased by Tranzyme Pharma at IPS    
    

 

 

								
	Floor

 
	 	Room 	 	Net Area 	 
	

 Usable area of the premises under the current lease	 	 	 	 
	03	 	 	Z5-3015	 	 	104.00	 
	

 03	 	 	Z5-3016	 	 	16.18	 
	03	 	 	Z5-3019	 	 	100.55	 
	

 03	 	 	Z5-3020	 	 	1.71	 
	03	 	 	Z5-3021	 	 	1.74	 
	

 03	 	 	Z5-3022	 	 	0.69	 
	03	 	 	Z5-3023	 	 	27.55	 
	

 03	 	 	Z5-3025	 	 	30.83	 
	03	 	 	Z5-3026	 	 	102.23	 
	

 03	 	 	Z5-3027	 	 	1.73	 
	03	 	 	Z5-3028	 	 	13.84	 
	

 03	 	 	Z5-3035	 	 	12.11	 
	03	 	 	Z5-3036	 	 	12.23	 
	

 03	 	 	Z5-3037	 	 	12.06	 
	03	 	 	Z5-3038	 	 	12.22	 
	

 03	 	 	Z5-3039	 	 	12.17	 
	03	 	 	Z5-3051	 	 	104.13	 
	

 Total Useable Area	 	 	 	 	 	 565.97	 
	 	 	 	 	 	 	 
	Total "Leasable" Area	 	 	 	 	 	 944.71	 
	 	 	 	 	 	 	 

 

 

 
 

  Schedule 1B    
    

  

QuickLinks

Exhibit 10.4

TABLE OF CONTENTS

PREAMBLE

SECTION 1 LEASE AND DESCRIPTION OF PREMISES

SECTION 2 TERM OF THE LEASE

SECTION 3 USE OF THE LEASED PREMISES

SECTION 4 RENT

SECTION 5 SERVICES

SECTION 6 LESSOR'S RIGHTS AND OBLIGATIONS

SECTION 7 LESSEE'S RIGHTS AND OBLIGATIONS

SECTION 8 REPAIRS, MODIFICATIONS AND IMPROVEMENTS

SECTION 9 ASSIGNMENT AND SUBLEASE

SECTION 10 COVENANTS IN THE EVENT OF LOSS

SECTION 11 INSURANCE

SECTION 12 LIABILITY—DAMAGE

SECTION 13 PERMITS AND TAXES

SECTION 14 RELEASE OF MOVABLE HYPOTHEC

SECTION 15 ACCESS TO THE LEASED PREMISES

SECTION 16 CONDITION OF THE PREMISES

SECTION 17 TERMINATION OF LEASE—DEFAULTS

SECTION 18 PUBLICATION

SECTION 19 WAIVER

SECTION 20 NOTICES AND REQUESTS

SECTION 21 EXPIRY OF LEASE

SECTION 22 RENEWAL OPTIONS

SECTION 23 FORCE MAJEURE

SECTION 24 INTERPRETATION

SECTION 25 ARBITRATION

SECTION 26 SUCCESSORS AND ASSIGNS

Schedule 1A

Schedule 1C

Schedule 2A

Schedule 2C

ADDENDUM 1 TO THE LEASE Between UNIVERSITÉ DE SHERBROOKE (the "LESSOR") and TRANZYME PHARMA INC. (the "LESSEE") With respect to the space in certain buildings belonging to the University

PREAMBLE

Schedule 1A

Area of premised leased by Tranzyme Pharma at IPS

Schedule 1B

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