Document:

Exhibit 10.4.1

 

Option No.                

 

IRONWOOD PHARMACEUTICALS, INC.

 

Stock Option Grant Notice

Stock Option Grant under the Company’s

2010 Employee, Director and Consultant Equity Incentive Plan

 

	
  1.

  	
  Name
  and Address of Participant:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Date
  of Option Grant:

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Type
  of Grant:

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Maximum
  Number of Shares for which this Option is exercisable:

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Exercise
  (purchase) price per share:

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Option
  Expiration Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Vesting
  Start Date(1):

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Vesting
  Schedule: This Option shall become exercisable (and the Shares issued upon
  exercise shall be vested) as follows provided the Participant is an employee, director or Consultant of
  the Company or of an Affiliate on the applicable vesting date:

  

 

Insert Vesting Schedule - sample below

 

	
  On the first anniversary of the
  Vesting Start Date

  	
   

  	
  up to
                          
  Shares

  
	
   

  	
   

  	
   

  
	
  On the
  second anniversary of the Vesting Start Date

  	
   

  	
  an additional
                      
  Shares

  
	
   

  	
   

  	
   

  
	
  On the third anniversary of the
  Vesting Start Date

  	
   

  	
  an additional
                      
  Shares

  

 

The foregoing rights are
cumulative and are subject to the other terms and conditions of this Agreement
and the Plan.

 

 

The
Company and the Participant acknowledge receipt of this Stock Option Grant Notice
and agree to the terms of the Stock Option Agreement attached hereto and
incorporated by reference herein, the Company’s 2010 Employee, Director and
Consultant Equity Incentive Plan and the terms of this Option Grant as set
forth above.

 

	
   

  	
  IRONWOOD
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant

  

 

 

2

 

IRONWOOD PHARMACEUTICALS, INC.

 

STOCK
OPTION AGREEMENT - INCORPORATED TERMS AND CONDITIONS

 

AGREEMENT made as of the
date of grant set forth in the Stock Option Grant Notice between Ironwood
Pharmaceuticals, Inc. (the “Company”), a Delaware corporation, and the
individual whose name appears on the Stock Option Grant Notice (the “Participant”).

 

WHEREAS, the Company
desires to grant to the Participant an Option to purchase shares of its Series A
Common Stock, $0.001 par value per share (the “Shares”), under and for the
purposes set forth in the Company’s 2010 Employee, Director and Consultant
Equity Incentive Plan (the “Plan”);

 

WHEREAS, the Company and
the Participant understand and agree that any terms used and not defined herein
have the same meanings as in the Plan; and

 

WHEREAS, the Company and
the Participant each intend that the Option granted herein shall be of the type
set forth in the Stock Option Grant Notice.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good
and valuable consideration, the parties hereto agree as follows:

 

1.            GRANT OF OPTION.

 

The Company hereby grants to the Participant the right
and option to purchase all or any part of an aggregate of the number of Shares
set forth in the Stock Option Grant Notice, on the terms and conditions and
subject to all the limitations set forth herein, under United States securities
and tax laws, and in the Plan, which is incorporated herein by reference. The
Participant acknowledges receipt of a copy of the Plan.

 

2.            EXERCISE PRICE.

 

The exercise price of the
Shares covered by the Option shall be the amount per Share set forth in the Stock
Option Grant Notice, subject to adjustment, as provided in the Plan, in the
event of a stock split, reverse stock split or other events affecting the
holders of Shares after the date hereof (the “Exercise Price”). Payment shall
be made in accordance with Paragraph 9  of the Plan.

 

3.            EXERCISABILITY OF OPTION.

 

Subject to the terms and
conditions set forth in this Agreement and the Plan, the Option granted hereby
shall become exercisable as set forth in the Stock Option Grant Notice and is
subject to the other terms and conditions of this Agreement and the Plan.

 

 

4.                                       TERM OF OPTION.

 

This Option shall
terminate ten years from the date of this Agreement or, if this Option is
designated in the Stock Option Grant Notice as an ISO and the Participant owns as
of the date hereof more than 10% of the total combined voting power of all
classes of capital stock of the Company or an Affiliate, five years from the
date of this Agreement, but shall be subject to earlier termination as provided
herein or in the Plan.

 

If the Participant ceases
to be an employee, director or Consultant of the Company or of an Affiliate for
any reason other than the death or Disability of the Participant, or
termination of the Participant for Cause, the Option
may be exercised, if it has not previously terminated, within three months
after the date the Participant ceases to provide service to the Company or an
Affiliate, or within the originally prescribed term of the Option, whichever is
earlier, but may not be exercised thereafter except as set forth below. In such
event, the Option shall be exercisable only to the extent that the Option has
become exercisable and is in effect at the date of such cessation of service.

 

If
this Option is
designated in the Stock Option Grant Notice as an ISO and the
Participant ceases to be an employee of the Company or of an Affiliate but
continues after termination of employment to provide service to the Company or
an Affiliate as a director or Consultant, this Option shall continue to vest in
accordance with Section 3 above as if this Option had not terminated until
the Participant is no longer providing services to the Company. In such case,
this Option shall automatically convert and be deemed a Non-Qualified Option as
of the date that is three months from termination of the Participant’s
employment and this Option shall continue on the same terms and conditions set
forth herein until such Participant is no longer providing service to the
Company or an Affiliate.

 

Notwithstanding the
foregoing, in the event of the Participant’s Disability or death within three
months after the termination of service, the Participant or the Participant’s
Survivors may exercise the Option within one year after the date of the
Participant’s termination of service, but in no event after the date of
expiration of the term of the Option.

 

In the event the
Participant’s service is terminated by the Company or an Affiliate for Cause,
the Participant’s right to exercise any unexercised portion of this Option
shall cease immediately as of the time the Participant is notified his or her
service is terminated for Cause, and this Option shall thereupon terminate. Notwithstanding
anything herein to the contrary, if subsequent to the Participant’s
termination, but prior to the exercise of the Option, the Administrator
determines that, either prior or subsequent to the Participant’s termination,
the Participant engaged in conduct which would constitute Cause, then the
Participant shall immediately cease to have any right to exercise the Option
and this Option shall thereupon terminate.

 

In the event of the
Disability of the Participant, as determined in accordance with the Plan, the
Option shall be exercisable within one year after the Participant’s termination
of service or, if earlier, within the term originally prescribed by the Option.
In such event, the

 

2

 

Option shall be
exercisable to the extent that the Option has become exercisable but has not
been exercised as of the date of Disability.

 

In the event of the death
of the Participant while an employee, director or Consultant of the Company or
of an Affiliate, the Option shall be exercisable by the Participant’s Survivors
within one year after the date of death of the Participant or, if earlier,
within the originally prescribed term of the Option. In such event, the Option
shall be exercisable to the extent that the Option has become exercisable but
has not been exercised as of the date of death.

 

5.            METHOD OF EXERCISING OPTION.

 

Subject to the terms and
conditions of this Agreement, the Option may be exercised by written notice to
the Company or its designee, in substantially the form of Exhibit A
attached hereto (or in such other form acceptable to the Company, which may
include electronic notice). Such notice shall state the number of Shares with
respect to which the Option is being exercised and shall be signed by the
person exercising the Option (which signature may be provided electronically in
a form acceptable to the Company). Payment of the Exercise Price for such
Shares shall be made in accordance with Paragraph 9 of the Plan. The Company
shall deliver such Shares as soon as practicable after the notice shall be
received, provided, however, that the Company may delay issuance of such Shares
until completion of any action or obtaining of any consent, which the Company
deems necessary under any applicable law (including, without limitation, state
securities or “blue sky” laws). The Shares as to which the Option shall have
been so exercised shall be registered in the Company’s share register in the
name of the person so exercising the Option (or, if the Option shall be
exercised by the Participant and if the Participant shall so request in the
notice exercising the Option, shall be registered in the Company’s share
register in the name of the Participant and another person jointly, with right
of survivorship) and shall be delivered as provided above to or upon the
written order of the person exercising the Option. In the event the Option
shall be exercised, pursuant to Section 4 hereof, by any person other than
the Participant, such notice shall be accompanied by appropriate proof of the
right of such person to exercise the Option. All Shares that shall be purchased
upon the exercise of the Option as provided herein shall be fully paid and
nonassessable.

 

6.                                       PARTIAL EXERCISE.

 

Exercise of this Option
to the extent above stated may be made in part at any time and from time to
time within the above limits, except that no fractional share shall be issued
pursuant to this Option.

 

7.                                       NON-ASSIGNABILITY.

 

The Option shall not be
transferable by the Participant otherwise than by will or by the laws of
descent and distribution. If this Option is a Non-Qualified Option then it may
also be transferred pursuant to a qualified domestic relations order as defined
by the Code or Title I of the Employee Retirement Income Security Act or the rules thereunder.
Except as provided above in this paragraph, the Option shall be exercisable,
during the Participant’s lifetime, only by the Participant (or, in the event of
legal incapacity or incompetency, by the Participant’s guardian

 

3

 

or representative) and
shall not be assigned, pledged or hypothecated in any way (whether by operation
of law or otherwise) and shall not be subject to execution, attachment or
similar process. Any attempted transfer, assignment, pledge, hypothecation or
other disposition of the Option or of any rights granted hereunder contrary to the
provisions of this Section 7, or the levy of any attachment or similar
process upon the Option shall be null and void.

 

8.                                       NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

The Participant shall
have no rights as a stockholder with respect to Shares subject to this
Agreement until registration of the Shares in the Company’s share register in
the name of the Participant. Except as is expressly provided in the Plan with
respect to certain changes in the capitalization of the Company, no adjustment
shall be made for dividends or similar rights for which the record date is
prior to the date of such registration.

 

9.                                       ADJUSTMENTS.

 

The Plan contains
provisions covering the treatment of Options in a number of contingencies such
as stock splits and mergers. Provisions in the Plan for adjustment with respect
to stock subject to Options and the related provisions with respect to
successors to the business of the Company are hereby made applicable hereunder
and are incorporated herein by reference.

 

10.                                 TAXES.

 

The Participant
acknowledges that any income or other taxes due from him or her with respect to
this Option or the Shares issuable pursuant to this Option shall be the
Participant’s responsibility. The Participant acknowledges and agrees that (i) the
Participant was free to use professional advisors of his or her choice in
connection with this Agreement, has received advice from his or her
professional advisors in connection with this Agreement, understands its
meaning and import, and is entering into this Agreement freely and without
coercion or duress; (ii) the Participant has not received and is not
relying upon any advice, representations or assurances made by or on behalf of
the Company or any Affiliate or any employee of or counsel to the Company or
any Affiliate regarding any tax or other effects or implications of the Option,
the Shares or other matters contemplated by this Agreement and (iii) neither
the Administrator, the Company, its Affiliates, nor any of its officers or
directors, shall be held liable for any applicable costs, taxes, or penalties
associated with the Option if, in fact, the Internal Revenue Service were to
determine that the Option constitutes deferred compensation under Section 409A
of the Code.

 

If this Option is
designated in the Stock Option Grant Notice as an ISO and there is a
Disqualifying Disposition (as defined in Section 15 below) or if the
Option is converted into a Non-Qualified Option and such Non-Qualified Option
is exercised, the Participant agrees that the Company may withhold from the
Participant’s remuneration, if any, the minimum statutory amount of federal,
state and local withholding taxes attributable to such amount that is
considered compensation includable in such person’s gross income. At the
Company’s discretion, the amount required to be withheld may be withheld in
cash from such remuneration,

 

4

 

or in kind from the
Shares otherwise deliverable to the Participant on exercise of the Option. The
Participant further agrees that, if the Company does not withhold an amount
from the Participant’s remuneration sufficient to satisfy the Company’s income
tax withholding obligation, the Participant will reimburse the Company on
demand, in cash, for the amount under-withheld.

 

11.                                 PURCHASE FOR INVESTMENT.

 

Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option
shall have been effectively registered under the Securities Act of 1933, as now
in force or hereafter amended (the “1933 Act”), the Company shall be under no
obligation to issue the Shares covered by such exercise unless the Company has
determined that such exercise and issuance would be exempt from the
registration requirements of the 1933 Act and until the following conditions
have been fulfilled:

 

(a)                                  The person(s) who exercise the
Option shall warrant to the Company, at the time of such exercise, that such
person(s) are acquiring such Shares for their own respective accounts, for
investment, and not with a view to, or for sale in connection with, the
distribution of any such Shares, in which event the person(s) acquiring
such Shares shall be bound by the provisions of the following legend which
shall be endorsed upon any certificate(s) evidencing the Shares issued
pursuant to such exercise:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or
otherwise transferred by any person, including a pledgee, unless (1) either
(a) a Registration Statement with respect to such shares shall be effective
under the Securities Act of 1933, as amended, or (b) the Company shall
have received an opinion of counsel satisfactory to it that an exemption from
registration under such Act is then available, and (2) there shall have
been compliance with all applicable state securities laws;” and

 

(b)           If the Company so requires, the
Company shall have received an opinion of its counsel that the Shares may be
issued upon such particular exercise in compliance with the 1933 Act without
registration thereunder. Without limiting the generality of the foregoing, the
Company may delay issuance of the Shares until completion of any action or
obtaining of any consent, which the Company deems necessary under any
applicable law (including without limitation state securities or “blue sky”
laws).

 

12.                                 RESTRICTIONS ON TRANSFER OF SHARES.

 

12.1         The Participant agrees that
in the event the Company proposes to offer for sale to the public any of its
equity securities and such Participant is requested by the Company and any
underwriter engaged by the Company in connection with such offering to sign an
agreement restricting the sale or other transfer of Shares, then it will
promptly sign such agreement and will

 

5

 

not
transfer, whether in privately negotiated transactions or to the public in open
market transactions or otherwise, any Shares or other securities of the Company
held by him or her during such period as is determined by the Company and the
underwriters, not to exceed 180 days following the closing of the offering,
plus such additional period of time as may be required to comply with
Marketplace Rule 2711 of the National Association of Securities Dealers, Inc.
or similar rules thereto (such period, the “Lock-Up Period”). Such agreement
shall be in writing and in form and substance reasonably satisfactory to the
Company and such underwriter and pursuant to customary and prevailing terms and
conditions. Notwithstanding whether the Participant has signed such an
agreement, the Company may impose stop-transfer instructions with respect to
the Shares or other securities of the Company subject to the foregoing
restrictions until the end of the Lock-Up Period.

 

12.2         The Participant acknowledges and agrees
that neither the Company, its shareholders nor its directors and officers, has
any duty or obligation to disclose to the Participant any material information
regarding the business of the Company or affecting the value of the Shares
before, at the time of, or following a termination of the service of the
Participant by the Company, including, without limitation, any information
concerning plans for the Company to make a public offering of its securities or
to be acquired by or merged with or into another firm or entity.

 

13.                                 NO OBLIGATION TO MAINTAIN RELATIONSHIP.

 

The Company is not by the
Plan or this Option obligated to continue the Participant as an employee,
director or Consultant of the Company or an Affiliate. The Participant
acknowledges: (i) that the Plan is discretionary in nature and may be
suspended or terminated by the Company at any time; (ii) that the grant of
the Option is a one-time benefit which does not create any contractual or other
right to receive future grants of options, or benefits in lieu of options; (iii) that
all determinations with respect to any such future grants, including, but not
limited to, the times when options shall be granted, the number of shares
subject to each option, the option price, and the time or times when each
option shall be exercisable, will be at the sole discretion of the Company; (iv) that
the Participant’s participation in the Plan is voluntary; (v) that the
value of the Option is an extraordinary item of compensation which is outside
the scope of the Participant’s employment or consulting contract, if any; and (vi) that
the Option is not part of normal or expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar
payments.

 

6

 

14.                                 IF OPTION IS INTENDED TO BE AN ISO.

 

If this Option is
designated in the Stock Option Grant Notice as an ISO so that the Participant
(or the Participant’s Survivors) may qualify for the favorable tax treatment
provided to holders of Options that meet the standards of Section 422 of
the Code then any provision of this Agreement or the Plan which conflicts with
the Code so that this Option would not be deemed an ISO is null and void and
any ambiguities shall be resolved so that the Option qualifies as an ISO. The
Participant should consult with the Participant’s own tax advisors regarding
the tax effects of the Option and the requirements necessary to obtain
favorable tax treatment under Section 422 of the Code, including, but not
limited to, holding period requirements.

 

Notwithstanding
the foregoing, to the extent that the Option is designated in the Stock Option Grant Notice as an
ISO and is not deemed to be an ISO pursuant to Section 422(d) of
the Code because the aggregate fair market value (determined as of the date
hereof) of any of the Shares with respect to which this ISO is granted becomes
exercisable for the first time during any calendar year in excess of $100,000,
the portion of the Option representing such excess value shall be treated as a
Non-Qualified Option and the Participant shall be deemed to have taxable income
measured by the difference between the then fair market value of the Shares
received upon exercise and the price paid for such Shares pursuant to this
Agreement.

 

Neither
the Company nor any Affiliate shall have any liability to the Participant, or
any other party, if the Option (or any part thereof) that is intended to be an
ISO is not an ISO or for any action taken by the Administrator, including
without limitation the conversion of an ISO to a Non-Qualified Option.

 

15.                                 NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION OF AN ISO.

 

If this Option is
designated in the Stock Option Grant Notice as an ISO then the Participant
agrees to notify the Company in writing immediately after the Participant makes
a Disqualifying Disposition of any of the Shares acquired pursuant to the
exercise of the ISO. A Disqualifying Disposition is defined in Section 424(c) of
the Code and includes any disposition (including any sale) of such Shares
before the later of (a) two years after the date the Participant was
granted the ISO or (b) one year after the date the Participant acquired
Shares by exercising the ISO, except as otherwise provided in Section 424(c) of
the Code. If the Participant has died before the Shares are sold, these holding
period requirements do not apply and no Disqualifying Disposition can occur
thereafter.

 

16.                                 NOTICES.

 

Any notices required or
permitted by the terms of this Agreement or the Plan shall be given by
recognized courier service, facsimile, registered or certified mail, return
receipt requested, addressed as follows:

 

If
to the Company:

 

Ironwood
Pharmaceuticals, Inc.

 

7

 

320 Bent Street

Cambridge,
MA 02141

Attention:
General Counsel

 

If to the Participant at
the address set forth on the Stock Option Grant Notice

 

or to such other address
or addresses of which notice in the same manner has previously been given. Any
such notice shall be deemed to have been given upon the earlier of receipt, one
business day following delivery to a recognized courier service or three
business days following mailing by registered or certified mail.

 

17.                                 GOVERNING LAW.

 

This Agreement shall be
construed and enforced in accordance with the law of the State of Delaware,
without giving effect to the conflict of law principles thereof. For the
purpose of litigating any dispute that arises under this Agreement, the parties
hereby consent to exclusive jurisdiction in Massachusetts and agree that such
litigation shall be conducted in the state courts of Middlesex County,
Massachusetts or the federal courts of the United States for the District of
Massachusetts.

 

18.                                 BENEFIT OF AGREEMENT.

 

Subject to the provisions
of the Plan and the other provisions hereof, this Agreement shall be for the
benefit of and shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties hereto.

 

19.                                 ENTIRE AGREEMENT.

 

This Agreement, together
with the Plan, embodies the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement
not expressly set forth in this Agreement shall affect or be used to interpret,
change or restrict, the express terms and provisions of this Agreement,
provided, however, in any event, this Agreement shall be subject to and
governed by the Plan.

 

8

 

20.                                 MODIFICATIONS AND AMENDMENTS.

 

The terms and provisions
of this Agreement may be modified or amended as provided in the Plan.

 

21.                                 WAIVERS AND CONSENTS.

 

Except as provided in the
Plan, the terms and provisions of this Agreement may be waived, or consent for
the departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to
any other terms or provisions of this Agreement, whether or not similar. Each
such waiver or consent shall be effective only in the specific instance and for
the purpose for which it was given, and shall not constitute a continuing
waiver or consent.

 

22.           DATA PRIVACY.

 

By entering into this
Agreement, the Participant: (i) authorizes the Company and each Affiliate,
and any agent of the Company or any Affiliate administering the Plan or
providing Plan recordkeeping services, to disclose to the Company or any of its
Affiliates such information and data as the Company or any such Affiliate shall
request in order to facilitate the grant of options and the administration of
the Plan; (ii) waives any data privacy rights he or she may have with
respect to such information; and (iii) authorizes the Company and each
Affiliate to store and transmit such information in electronic form.

 

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INTENTIONALLY LEFT BLANK]

 

9

 

Exhibit A

 

NOTICE OF EXERCISE
OF STOCK OPTION

 

[Form for Shares registered
in the United States]

 

To:          Ironwood Pharmaceuticals, Inc.

 

IMPORTANT NOTICE: This
form of Notice of Exercise may only be used at such time as the Company has
filed a Registration Statement with the Securities and Exchange Commission
under which the issuance of the Shares for which this exercise is being made is
registered and such Registration Statement remains effective.

 

Ladies and Gentlemen:

 

I hereby exercise my
Stock Option to purchase
                  
shares (the “Shares”) of the Series A Common Stock, $0.001 par value, of
Ironwood Pharmaceuticals, Inc. (the “Company”), at the exercise price of
$                
per share, pursuant to and subject to the terms of that Stock Option Grant
Notice dated
                              ,
20    .

 

I understand the nature
of the investment I am making and the financial risks thereof. I am aware that
it is my responsibility to have consulted with competent tax and legal advisors
about the relevant national, state and local income tax and securities laws
affecting the exercise of the Option and the purchase and subsequent sale of
the Shares.

 

I am paying the option
exercise price for the Shares as follows:

 

 

	
   

  	
   

  	
   

  

 

Please issue the Shares
(check one):

 

o
to me; or

 

o
to me and
                                                        ,
as joint tenants with right of survivorship,

 

at the following address:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

A-1

 

My mailing address for
shareholder communications, if different from the address listed above, is:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant (signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

  

 

A-2Exhibit 10.14.1

 

SECOND AMENDMENT TO LEASE

 

THIS
SECOND
AMENDMENT TO LEASE (this “Amendment”) is entered into
as of this 9th day of February, 2010 (the “Execution Date”), by and
between BMR-ROGERS STREET LLC, a Delaware limited liability company (“Landlord,”
as successor-in-interest to Rogers Street, LLC (“Original Landlord”)),
and IRONWOOD PHARMACEUTICALS, INC., a Delaware corporation (formerly known as
Microbia, Inc.) (“Tenant”).

 

RECITALS

 

A.            WHEREAS, Original
Landlord and Tenant entered into that certain Lease dated as of January 12,
2007, as amended by that certain First Amendment to Lease dated as of April 9,
2009 (collectively, as the same may have been otherwise amended, supplemented
or modified from time to time,  the “Lease”),
whereby Tenant leases certain premises (the “Original Premises”) from
Landlord at 301 Binney Street in Cambridge, Massachusetts (the “Building”);

 

B.            WHEREAS, Tenant
desires to lease additional premises from Landlord; and

 

C.            WHEREAS, Landlord
and Tenant desire to modify and amend the Lease only in the respects and on the
conditions hereinafter stated.

 

AGREEMENT

 

NOW,
THEREFORE, Landlord and Tenant, in consideration of the mutual promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally
bound, agree as follows:

 

1.             Definitions.  For purposes of this
Amendment, capitalized terms shall have the meanings ascribed to them in the
Lease unless otherwise defined herein.

 

2.             Rights of
Building Tenants in Additional Premises. 
As of the Execution Date, Landlord represents and warrants that no other
person or entity has any enforceable rights with respect to the leasing or
occupancy of the Additional Premises as a tenant.

 

3.             Additional
Premises.  As of the Execution Date,
Landlord hereby leases to Tenant approximately 50,000-60,000 contiguous
rentable square feet of additional premises located on the third floor of the
Building, as depicted on Exhibit A attached hereto (the “Additional
Premises”).  The Additional Premises
will be occupied in two phases.  The
first phase (the “Additional Premises Initial Phase”) shall consist of
at least 30,000 rentable square feet of space and the second phase (the “Additional
Premises Second Phase”) shall consist of an amount of rentable square
footage to be determined by Tenant, provided that the total Additional Premises
shall not exceed 60,000 rentable square feet of space and shall not be less
than 50,000 rentable square feet of space. 
The actual rentable square footage and actual useable square footage of
the Additional Premises Initial Phase and the Additional Premises Second Phase
will be adjusted and mutually agreed to between Landlord and Tenant based upon
the actual constructed rentable square footage and actual constructed usable
square footage determined in accordance with the Measurement Standard.  Tenant shall have the right, subject to the
limitations set forth above, to determine the size of the Additional Premises 

 

 

Second
Phase until the earlier of (a) such time that Landlord presents a bona
fide offer on any remaining unoccupied space on the third floor of the Building
that could include a portion of the Additional Premises Second Phase to a third
party and (b) December 31, 2010; provided that Landlord shall
give Tenant written notice at least 10 business days prior to making or
accepting any offer under clause (a).  If
any such offer does not result in a binding obligation to lease the remaining
space, Landlord shall advise Tenant of the same and Tenant shall again have the
right to adjust the actual square footage of the Additional Premises Second
Phase as provided in the previous sentence.

 

4.             Term
Commencement Date.  The term with
respect to the Additional Premises shall commence upon the Execution Date and
shall terminate, subject to any extension options granted pursuant to the
Lease, simultaneous with the expiration of the Term.  From and after the Execution Date, the term “Premises,”
as used in the Lease, shall mean the Original Premises plus the Additional
Premises and, except as otherwise provided herein, all provisions of the Lease,
including (without limitation) the option to extend the Term as set forth in Section 3.03
of the Lease, shall apply to such Premises.

 

5.             Additional
Premises Initial Phase Rent Commencement Date.  Rent, with respect to the Additional Premises
Initial Phase, shall commence upon substantial completion of the Finish Work
within the Additional Premises Initial Phase and Tenant’s occupancy thereof for
the conduct of its business, but in no event later than July 1, 2010 (the “Additional
Premises Initial Phase Rent Commencement Date”).  Following the Additional Premises Initial
Phase Rent Commencement Date, Landlord and Tenant shall enter into an amendment
to the Lease, as amended hereby, memorializing the actual useable square
footage and the actual rentable square footage of the Additional Premises
Initial Phase, the Additional Premises Initial Phase Rent Commencement Date, an
appropriate adjustment to Tenant’s Pro Rata Share and the Additional Premises
Finish Work Allowance with respect thereto.

 

6.             Additional
Premises Second Phase Rent Commencement Date.  Rent, with respect to the Additional Premises
Second Phase, shall commence upon substantial completion of the Finish Work
within the Additional Premises Second Phase and Tenant’s occupancy thereof for
the conduct of its business, but in no event later than July 1, 2011 (the “Additional
Premises Second Phase Rent Commencement Date”). Following the Additional
Premises Second Phase Rent Commencement Date, Landlord and Tenant shall enter
into an amendment to the Lease, as amended hereby, memorializing the actual
useable square footage and the actual rentable square footage of the Additional
Premises Second Phase, the Additional Premises Second Phase Rent Commencement
Date, an appropriate adjustment to Tenant’s Pro Rata Share and the Additional
Premises Finish Work Allowance with respect thereto.

 

7.             Tenant’s Pro
Rata Share.  Tenant’s Pro Rata Share
shall be increased on the Additional Premises Initial Phase Rent Commencement
Date to include the actual rentable square footage of the Additional Premises
Initial Phase in the calculation of Tenant’s Pro Rata Share.  Tenant’s Pro Rata Share shall be further
increased on the Additional Premises Second Phase Rent Commencement Date to
include the actual rentable square footage of the Additional Premises Second
Phase in the calculation of Tenant’s Pro Rata Share.

 

 

8.             Base Rent/Annual
Adjustments:  The initial Base Rent
for (i) the Additional Premises Initial Phase shall be $42.00 per rentable
square foot per year and (ii) the Additional Premises Second Phase shall
be $42.50 per rentable square foot per year commencing on the respective Rent
Commencement Date for each phase.  Base
Rent for the Additional Premises Initial Phase shall be increased during the
initial Term on each annual anniversary of the Additional Premises Initial
Phase Rent Commencement Date by fifty cents ($0.50) per rentable square foot
per year.  Base Rent for the Additional
Premises Second Phase shall be increased during the initial Term on each annual
anniversary of the Additional Premises Second Phase Rent Commencement Date by
fifty cents ($0.50) per rentable square foot per year.  Base Rent for the Additional Premises shall
not be increased on the Interim Date as provided in Section 1.16 of the
Lease.  Base Rent for the Additional
Premises for any Extension Term or Terms shall be determined in accordance with
Section 1.16 of the Lease. 
Commencing on the respective Rent Commencement Date for each phase, the
Base Rent for such phase of the Additional Premises shall be paid in equal
monthly installments in advance on the first day of each and every calendar
month during the Term as set forth in Section 4.01 of the Lease.  To the extent the Rent Commencement Date for
either phase occurs before the actual rentable square footage of such phase is
determined in accordance with Section 3 of this Amendment, the
parties hereto agree to true up all payments of Rent for such phase made prior
to the date such actual square footage is determined within thirty (30) days of
the date such actual rentable square footage is determined.  The parties will also make any appropriate adjustments
and true ups for payments of the Additional Premises Finish Work Allowance for
such phase within thirty (30) days of the date such actual rentable square
footage is determined.

 

9.             Finish Work
Allowance.  Landlord shall provide to
Tenant an additional Finish Work Allowance of Fifty-Five Dollars ($55.00) per
rentable square foot of Additional Premises (the “Additional Premises Finish
Work Allowance”) in order to fund, pursuant to the terms and procedures set
forth in Sections 10.04(c) and 10.05 of the Lease (including, without
limitation, Tenant’s rights under the last paragraph of Section 10.04(c)-2
of Exhibit 10.04(c)), the design and construction by Tenant of the Finish
Work with respect to the Additional Premises; provided that, notwithstanding
anything in Sections 10.04(c) or 10.05 of the Lease to the contrary, (i) Tenant
shall have no obligation to pay or reimburse Landlord for any costs or expenses
to review or supervise the construction of the Finish Work with respect to the
Additional Premises, to review the Construction Documents related thereto or to
assist with government filings and (ii) Landlord’s approval of the
Construction Documents related to the Finish Work with respect to the
Additional Premises shall not be unreasonably withheld, conditioned or
delayed.  The Finish Work Allowance
provided for the Additional Premises Initial Phase and the Additional Premises
Second Phase shall be determined based on the actual constructed rentable
square footage of each Phase.  The Finish
Work Allowance for the Additional Premises Initial Phase must be utilized for
Finish Work constructed within the Additional Premises Initial Phase and the
Finish Work Allowance for the Additional Premises Second Phase must be utilized
for Finish Work constructed within the Additional Premises Second Phase.  Tenant will not be
required to remove the Finish Work constructed within the Additional Premises
at the end of the Term.

 

10.           Condition of
Premises.   Tenant acknowledges that,
other than as set forth below or in the Lease, neither Landlord nor any agent
of Landlord has made any representation or warranty with respect to the
condition of the Additional Premises, the Building or the Property, or with
respect to the suitability of the Additional Premises, the Building or the
Property for the conduct of Tenant’s 

 

 

business.  Tenant acknowledges that (a) it is fully
familiar with the condition of the Additional Premises and agrees to take the
same in its condition “as is” as of the Execution Date  and
(b) Landlord shall have no obligation to alter, repair or otherwise
prepare the Additional Premises for Tenant’s occupancy or to pay for or
construct any improvements to the Additional Premises, except that Landlord
shall complete the items listed on Exhibit B attached hereto prior
to March 1, 2010  and provide the
Finish Work Allowance as described in Section 9 above. Landlord
hereby represents and warrants that, as of the Execution Date, the common area
of the Building and the Additional Premises are in compliance with all Legal
Requirements.

 

11.           Parking.  In addition to any existing Tenant rights to
parking spaces under the Lease, commencing on January 1, 2011, Landlord
shall provide Tenant with 1.0 parking spaces per 1,000 useable square feet
(exclusive of mechanical space) of Additional Premises Initial Phase, plus ten
additional spaces, at Landlord’s then-current prevailing monthly rate for
parking spaces.  Furthermore, commencing
on the Additional Premises Second Phase Rent Commencement Date, Landlord shall
provide Tenant with 1.0 parking spaces per 1,000 useable square feet (exclusive
of mechanical space) of Additional Premises Second Phase at Landlord’s
then-current prevailing monthly rate for parking spaces.  Following such date, upon Tenant’s request,
Tenant shall have the right to temporarily use any additional parking spaces
then-available for use at Landlord’s then-current prevailing monthly rate for
parking spaces until such spaces are assigned to future tenants of the Building
or future tenants of the building located at 320 Bent Street, Cambridge, Massachusetts.
Tenant’s use of the parking spaces provided hereunder and Tenant’s rights with
respect thereto (including (without limitation) limitations on increases in the
prevailing monthly rate for parking spaces) shall otherwise be in accordance
with the terms of Section 2.01(d) of the Lease.

 

12.           Right of First
Refusal.  In addition to Tenant’s
Right of First Offer set forth in Article 18 of the Lease and Tenant’s
Right of First Refusal set forth in Article 19 of the Lease, for so long
as Tenant occupies at least seventy-five percent (75%) of the Premises for
which Base Rent has commenced, Tenant shall have a right of first refusal (“ROFR”)
as to any rentable premises on the third floor of the Building (“Available
ROFR Premises”).  To the extent that
Landlord renews or extends a then-existing lease for space on the third floor
with any then-existing tenant, or enters into a new lease for such space with
such then-existing tenant, such space shall not be deemed to be Available ROFR
Premises.  In the event Landlord intends
to lease Available ROFR Premises and prior to entering into any binding
obligation to lease such space, Landlord shall provide written notice thereof
to Tenant (the “Notice of Offer”), specifying the terms and conditions
of a proposed lease to Tenant of the Available ROFR Premises.

 

12.1.        Within fifteen (15)
days following its receipt of a Notice of Offer, Tenant shall advise Landlord
in writing whether Tenant elects to lease all (not just a portion) of the
Available ROFR Premises or, at Tenant’s option (in its sole discretion), the
entire unoccupied rentable premises on the third floor of the Building,
including the Available ROFR Premises, on the terms and conditions set forth in
the Notice of Offer.  If Tenant fails to
notify Landlord of Tenant’s election within said fifteen (15) day period, then
Tenant shall be deemed to have elected not to lease the Available ROFR
Premises.

 

12.2         If Tenant timely
notifies Landlord that Tenant elects to lease the Available ROFR Premises or
the entire unoccupied rentable premises on the third floor of the Building on
the 

 

 

terms
and conditions set forth in the Notice of Offer, then Landlord shall lease the
Available ROFR Premises or the entire unoccupied rentable premises on the third
floor of the Building, as applicable, to Tenant upon the terms and conditions
set forth in the Notice of Offer.

 

12.3         If Tenant notifies
Landlord that Tenant elects not to lease the Available ROFR Premises or the
entire unoccupied rentable premises on the third floor of the Building on the
terms and conditions set forth in the Notice of Offer, or if Tenant fails to
notify Landlord of Tenant’s election within the fifteen (15) day period
described above, then Landlord shall have the right to consummate the lease of
the Available ROFR Premises on the same terms and conditions as set forth in
the Notice of Offer following Tenant’s election (or deemed election) not to
lease the Available ROFR Premises or the entire unoccupied rentable premises on
the third floor of the Building.  If
Landlord does not lease the Available ROFR Premises within one hundred eighty
(180) days after Tenant’s election (or deemed election) not to lease the
Available ROFR Premises or the entire unoccupied rentable premises on the third
floor of the Building, then the ROFR shall be fully reinstated, and Landlord
shall not thereafter lease the Available ROFR Premises without first complying
with the procedures set forth in this Article 12.

 

12.4         Notwithstanding
anything in this Article 12 to the contrary, Tenant shall not
exercise the ROFR during such period of time that Tenant is in default under
any provision of the Lease, as amended hereby, beyond all notice and cure
periods.  Any attempted exercise of the
ROFR during a period of time in which Tenant is so in default beyond all notice
and cure periods shall be void and of no effect.   In addition, Tenant shall not be entitled to
exercise the ROFR if Landlord has given Tenant two (2) or more notices of (i) any
monetary default or (ii) any material non-monetary default under the
Lease, whether or not the defaults are cured, during the twelve (12) month
period prior to the date on which Tenant seeks to exercise the ROFR.

 

12.5         Notwithstanding
anything in this Lease to the contrary, Tenant shall not assign or transfer the
ROFR, either separately or in conjunction with an assignment or transfer of
Tenant’s interest in the Lease, without Landlord’s prior written consent, which
consent Landlord may withhold in its sole and absolute discretion; provided
that this Section 12.5 shall not apply to a Permitted Transfer.

 

12.6         If Tenant exercises
the ROFR, Landlord does not guarantee that the Available ROFR Premises will be
available on the anticipated commencement date for the Lease as to such
Available ROFR Premises in the event that the Available ROFR Premises is
unavailable due to a holdover by the then-existing occupants of the Available
ROFR Premises or for any other reason beyond Landlord’s reasonable control;
provided that (i) all Tenant obligations under the Lease, as amended
hereby, related to such Available ROFR Premises shall commence only if such
Available ROFR Premises has been delivered to Tenant free and clear of all
occupants (and all other conditions to the commencement of any such obligations
have been satisfied) and (ii) Landlord shall use commercially reasonable
efforts to deliver such Available ROFR Premises to Tenant free and clear of all
occupants as soon as reasonably possible and, if such Available ROFR Premises,
is not so delivered within ninety (90) days of the anticipated commencement
date, Tenant shall have the right at any time thereafter until such Available
ROFR Premises is so delivered, on thirty (30) days advance notice to Landlord,
to withdraw its exercise of the ROFR with respect to such Available ROFR
Premises.

 

 

13.           Utilities.  The first paragraph of Section 6.01
of the Lease is hereby deleted and replaced in its entirety with the following:

 

“Tenant
shall pay for all water (including the cost to service, repair and replace
reverse osmosis, de-ionized and other treated water), gas, heat, light, power,
telephone, internet service, cable television, other telecommunications and
other utilities supplied to the Premises (“Utility Services”), together
with any fees, surcharges and taxes thereon. 
It is understood and agreed that Landlord shall be responsible for
bringing Utility Service and telecommunications service to a common switching
point(s) at the Building as shown on Exhibit 6.01 attached to
the Lease (collectively, the “Utility Switching Points”).   The initial installation of metering of the
Original Premises and Additional Premises for the purpose of measuring Tenant’s
consumption of Utility Services is as set forth on the Metering Chart attached
hereto as Exhibit C (the “Metering Chart”), and the
allocation of the cost of installing, maintaining and repairing such metering
between the parties is set forth on the Metering Chart.  All Utility Services serving the Original
Premises or Additional Premises that are listed on the Metering Chart shall be
separately metered or otherwise addressed as provided on the Metering Chart and
Tenant shall pay for such Utility Services in the manner specified on the
Metering Chart and consistent with the provisions of this paragraph related to
the payment of such Utility Services charges. 
Tenant shall pay all costs and expenses associated with any separately
metered utilities provided exclusively to the Premises directly to the
applicable service provider.  Tenant
shall pay all costs and expenses associated with utility charges that are based
on a check- or sub-metering metering installation based on Landlord’s reading
of such meters directly to Landlord at the same rate paid by Landlord to the
provider thereof.  Additional Rent for
such utilities may be reasonably estimated monthly by Landlord, based on actual
readings of sub- and “check” meters where applicable, and shall be paid monthly
by Tenant within thirty (30) days after being billed with a final accounting
based upon actual bills received from the utility providers following the
conclusion of each fiscal year of the Building. 
Tenant shall be provided with access to all meters (including sub and “check”
meters) that measure Tenant’s consumption of Utility Services and, upon Tenant’s
request, Landlord shall provide Tenant with reasonable supporting documentation
(i) evidencing the rates paid by Landlord to providers of Utility Services
or (ii) supporting the final accounting described above.  Tenant shall pay for any and all costs to
install and connect Utility Services from the Utility Switching Points to the
Premises.    Landlord shall be under no
obligation as to any Utility Services beyond the foregoing responsibility to
bring such Utility Services to the Utility Switching Points as required in the
completion of the Base Building Work and Landlord shall not be liable for any
interruption or failure in the supply of any utilities or Utility Services,
except to the extent expressly set forth below.”

 

14.           Operating
Expenses.  The third parenthetical in
the first paragraph of Section 8.01 of the Lease is hereby deleted
in its entirety and replace with the following language:  “(other than Utility Services to tenants in
their demised premises if Tenant is directly responsible for payment under the
Lease on account of such Utility Service consumed by Tenant)”.  For the avoidance of doubt, in no event shall
Operating Expenses or other amounts charged to Tenant under the Lease, as
amended hereby, include the costs of Utility Services to other tenants of the Building
in their demised premises if Tenant is responsible for payment under the Lease,
as amended hereby, for Tenant’s actual consumption of such Utility Service.

 

 

15.           Broker. Tenant represents and warrants that it has had no dealings with
any real estate broker or agent in connection with the negotiation of this
Amendment other than CB Richard Ellis, Inc. (“Broker”), and that it
knows of no other real estate broker or agent that is or might be entitled to a
commission in connection with the representation of Tenant in connection with
this Amendment.  Landlord shall
compensate Broker in relation to this Amendment pursuant to a separate
agreement between Landlord and Broker.

 

15.1         Tenant represents and
warrants that no broker or agent has made any representation or warranty relied
upon by Tenant in Tenant’s decision to enter into this Amendment, other than as
contained in this Amendment.

 

15.2         Tenant acknowledges
and agrees that the employment of brokers by Landlord is for the purpose of
solicitation of offers of leases from prospective tenants and that no authority
is granted to any broker to furnish any representation (written or oral) or
warranty from Landlord unless expressly contained within this Amendment.  Landlord is executing this Amendment in reliance
upon Tenant’s representations, warranties and agreements contained within Section 15,
Section 15.1 and this Section 15.2.

 

15.3         Tenant agrees to
indemnify, save, defend and hold Landlord harmless from any and all cost or
liability for compensation claimed by any other broker or agent, other than
Broker, employed or engaged by Tenant or claiming to have been employed or
engaged by Tenant.

 

15.4         Landlord shall pay
any commission, fee or other compensation due to any Landlord broker(s) in
connection with this Amendment.  Landlord
agrees to indemnify, save, defend and hold Tenant harmless from any and all
cost or liability for compensation claimed by any broker or agent employed or
engaged by Landlord or claiming to have been employed or engaged by Landlord.

 

16.           Effect of Amendment. 
Except as modified by this Amendment, the Lease and all the covenants,
agreements, terms, provisions and conditions thereof shall remain in full force
and effect and are hereby ratified and affirmed.  The covenants, agreements, terms, provisions
and conditions contained in this Amendment shall bind and inure to the benefit
of the parties hereto and their respective successors and, except as otherwise
provided in the Lease, as amended hereby, their respective assigns.  In the event of any conflict between the
terms contained in this Amendment and the Lease, the terms herein contained
shall supersede and control the obligations and liabilities of the
parties.  From and after the Execution
Date, the term “Lease” as used in the Lease shall mean the Lease, as
modified by this Amendment.

 

17.           Miscellaneous. 
This Amendment becomes effective only upon execution and delivery hereof
by Landlord and Tenant. The captions of the paragraphs and subparagraphs in
this Amendment are inserted and included solely for convenience and shall not
be considered or given any effect in construing the provisions hereof.  All exhibits hereto are incorporated herein
by reference.

 

18.           Counterparts.  This
Amendment may be executed in one or more counterparts that, when taken
together, shall constitute one original.

 

 

19.           Authority.  Landlord and Tenant have all necessary and
proper authority, without the need for the consent of any other person or
entity, to enter into and perform under this Amendment.

 

 

IN
WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands as of the
date and year first above written, and acknowledge that they possess the
requisite authority to enter into this transaction and to execute this
Amendment.

 

	
  LANDLORD:

  	
   

  
	
   

  	
   

  
	
  BMR-ROGERS STREET LLC,

  	
   

  
	
  a
  Delaware limited liability company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Jonathan P. Klassen

  	
   

  
	
  Name:

  	
  Jonathan
  P. Klassen

  	
   

  
	
  Title:

  	
  VP,
  Legal and Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
  IRONWOOD
  PHARMACEUTICALS, INC.,

  	
   

  
	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  J DeTore

  	
   

  
	
  Name:

  	
  J
  DeTore

  	
   

  
	
  Title:

  	
  VP, Finance

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