Document:

Ex 10.3 Form of PS Agreement

Exhibit 10.3

    
USG CORPORATION
PERFORMANCE SHARES AGREEMENT
WHEREAS, the “Grantee” is an employee of USG Corporation, a Delaware corporation (the “Company”) or a Subsidiary;
WHEREAS, the Board of Directors of the Company (the “Board”) has granted to the Grantee, as set forth in the Award Summary on the Morgan Stanley Wealth Management website on the “Date of Grant”, the number of Performance Shares (as defined in the Plan) pursuant to the Company’s Long-Term Incentive Plan, as amended (the “Plan”), subject to the terms and conditions of the Plan and the terms and conditions hereinafter set forth; 

WHEREAS, Exhibit A to this Agreement contains defined terms that are used in this Agreement with initial capital letters, and other terms are defined in this Agreement for further use herein with initial capital letters; and

WHEREAS, the execution of a Performance Shares Agreement substantially in the form hereof to evidence such grant has been authorized by a resolution of the Board.

NOW, THEREFORE, the Company and the Grantee agree as follows:

		
	1.
	Grant of Performance Share Right.  Subject to the terms of the Plan, the Company hereby grants to the Grantee a targeted number of Performance Shares (the “Target Performance Shares”), payment of which depends on the Company’s performance as set forth in this Agreement and in the Statement of Performance Goals (the “Statement of Performance Goals”) approved by the Board.

		
	2.
	Earning of Award.

(a)    Performance Measure.  The Grantee’s right to receive all, any portion of, or more than, the Target Performance Shares will be contingent upon the achievement of specified levels of performance of the Company’s total stockholder return (including reinvestment of dividends) relative to the performance of the Dow Jones U.S. Construction and Materials Index (“Total Stockholder Return”), as set forth in the Statement of Performance Goals and will be measured over the period from January 1, 2014 through the end of the fifteenth day in 2017 on which the New York Stock Exchange is open for trading (the “Performance Period”).

(b)    Below Threshold.  If, upon the conclusion of the Performance Period, Total Stockholder Return for the Performance Period falls below the threshold level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, no Performance Shares for the Performance Period shall become earned.

(c)    Threshold.  If, upon the conclusion of the Performance Period, Total Stockholder Return for the Performance Period equals the threshold level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, 35% of the Target Performance Shares for the Performance Period shall become earned.

(d)    Between Threshold and Target.  If, upon the conclusion of the Performance Period, Total Stockholder Return exceeds the threshold level, but is less than the target level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, the Target Performance Shares shall become earned based on performance during the Performance Period, as determined by mathematical straight-line interpolation between 35% of the Target Performance Shares and 100% of the Target Performance Shares.

(e)    Target.  If, upon the conclusion of the Performance Period, Total Stockholder Return for the Performance Period equals the target level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, 100% of the Target Performance Shares for the Performance Period shall become earned.

(f)    Between Target and Intermediate.  If, upon the conclusion of the Performance Period, Total Stockholder Return exceeds the target level, but is less than the intermediate level, as set forth in the Performance Matrix contained in the Statement of Performance Goals the Target Performance Shares shall become earned based on performance during the Performance Period, as determined by mathematical straight-line interpolation between 100% of the Target Performance Shares and 150% of the Target Performance Shares.

(g)    Intermediate.  If, upon the conclusion of the Performance Period, Total Stockholder Return for the Performance Period equals the intermediate level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, 150% of the Target Performance Shares for the Performance Period shall become earned.

(h)    Between Intermediate and Maximum.  If, upon the conclusion of the Performance Period, Total Stockholder Return exceeds the intermediate level, but is less than the maximum level, as set forth in the Performance Matrix contained in the Statement of Performance Goals the Target Performance Shares shall become earned based on performance during the Performance Period, as determined by mathematical straight-line interpolation between 150% of the Target Performance Shares and 200% of the Target Performance Shares.

(i)    Equals or Exceeds Maximum.  If, upon the conclusion of the Performance Period, Total Stockholder Return for the Performance Period equals or exceeds the maximum level, as set forth in the Performance Matrix contained in the Statement of Performance Goals, 200% of the Target Performance Shares shall become earned.

(j)    Conditions; Determination of Earned Award.  Except as otherwise provided herein, the Grantee’s right to receive any Performance Shares is contingent upon his or her remaining in the continuous employ of the Company or a Subsidiary through December 31, 2016.  Following the Performance Period, the Board shall determine whether and to what extent the goals relating to Total Stockholder Return have been satisfied for the Performance Period and shall determine the number of Performance Shares that shall have become earned hereunder.

		
	3.
	Effect of Change in Control.  Notwithstanding anything to the contrary in this Agreement, the following provisions shall apply in connection with a Change in Control.  Subject to the last sentence of this paragraph: (I) the treatment in connection with a Change in Control of any Performance Shares that are outstanding at the time of such Change in Control will depend upon whether the Awards made under this Agreement are Assumed (as defined in Exhibit A to this Agreement) by the entity effecting the Change in Control; (II) if the entity effecting the Change in Control Assumes the Awards made under this Agreement, Section 3(a) shall apply; and (III) if the entity effecting the Change in Control does not Assume the Awards made under this Agreement, then Section 3(b) shall apply.  Notwithstanding the preceding sentence, Section 4 shall apply and the following provisions of this Section shall not apply if the Change in Control occurs after termination of the Grantee’s employment due to death, Disability or Retirement.

		
	(a)
	Awards Assumed by Successor:  If the awards made under this Agreement that are outstanding at the time of a Change in Control are Assumed by the entity effecting the Change in Control, the number of Performance Shares that may become payable to the Grantee shall be determined pursuant to Section 3(a)(i) below, and the circumstances in which the Grantee shall earn such number of Performance Shares are described in Section 3(a)(ii) below.  Exhibit A to this Agreement contains defined terms for the purposes of this Agreement.

		
	(i)
	Upon the occurrence of a Change in Control, the number of Performance Shares that may become payable to the Grantee (the “CIC Performance Shares”) shall be determined pursuant to Section 2 above, except that for the purposes of such calculation: 

		
	(A)
	the date on which the Change in Control occurs (the “CIC Date”) shall be substituted for the last day of the Performance Period in both Section 2 above and in the Statement of Performance Goals;

		
	(B)
	the Performance Period shall be the period from January 1, 2014 through the CIC Date;

		
	(C)
	the value ascribed to the Common Shares in the Change in Control shall be used as the ending Stock Price of the Common Shares for purposes of paragraph 3(c) of the Statement of Performance Goals; and

		
	(D)
	the average closing prices of the shares of the Peers shall be calculated using the 20 trading days ending on the trading day preceding the CIC Date for purposes of Section 3(c) of the Statement of Performance Goals.

		
	(ii)
	The CIC Performance Shares shall become earned by the Grantee if the Grantee remains employed through December 31, 2016.  Unless clause (A), (B) or (C) below applies, all of the CIC Performance Shares that are outstanding at the time of the Grantee’s termination of employment prior to December 31, 2016 shall be forfeited.  Notwithstanding the preceding sentence, any CIC Performance Shares that have not been earned by the Grantee pursuant to this Section 3(a)(ii) shall be earned on the first to occur of the following events between the CIC Date and December 31, 2016:

		
	(A)
	the involuntary termination of the Grantee’s employment for reasons other than Cause (as defined in Exhibit A);

		
	(B)
	the Grantee’s voluntary termination of employment for Good Reason (as defined in Exhibit A); or

		
	(C)
	the termination of the Grantee’s employment due to the Grantee’s death, Disability or Retirement (as such terms are defined in Exhibit A).

		
	(b)
	Awards Not Assumed by Successor.  Upon the occurrence of a Change in Control, any unearned Performance Shares outstanding at the time of the Change in Control that are not Assumed by the entity effecting the Change in Control shall immediately become earned in such amount as shall be determined in accordance with the terms outlined in Section 3(a)(i) above.  Any Target Performance Shares that are not Assumed and that are not earned on the CIC Date pursuant to this Section 3(b) shall be forfeited.

		
	4.
	Termination Due to Death, Disability, Retirement.  If the Grantee’s employment with the Company or a Subsidiary terminates before December 31, 2016 and before the occurrence of a Change in Control due to the Grantee’s death, Disability or Retirement, the Company shall pay to the Grantee or his or her executor or administrator, as the case may be, at the time described in Section 6 and based on the level of achievement of Total Stockholder Return during the Performance Period, a pro rata number of the Target Performance Shares based on the number of full months during the Performance Period and prior to January 1, 2017 during which the Grantee was employed by the Company, and the remaining performance shares will be forfeited.  Notwithstanding the foregoing, if a Change in Control occurs after the termination of the Grantee’s employment due to death, Disability or Retirement but before the end of the Performance Period, the Grantee shall earn at the time of such Change in Control the pro rata number (determined as specified above) of such number of the Performance Shares as shall be determined in accordance with Section 3(a)(i), and any Performance Shares that are not earned on the CIC Date pursuant to this sentence shall be forfeited.

		
	5.
	Forfeiture.  In addition to the forfeiture of Performance Shares pursuant to other provisions of this Agreement, if either (i) the Grantee’s employment with the Company or a Subsidiary terminates before December 31, 2016, and before the occurrence of a Change in Control, for any reason other than as set forth in Section 4 hereof or (ii) the Board (or a committee of the Board) finds that the Grantee has engaged in any fraud or intentional misconduct as described in Section 20 hereof, the Performance Shares will be forfeited.  Performance Shares shall be considered to have been forfeited upon the event that causes such forfeiture and shall not be considered to be outstanding thereafter.

		
	6.
	Form and Time of Payment of Performance Shares.  Payment of any Performance Shares that become earned as set forth herein will be made in the form of Common Shares.  Except as otherwise provided in Section 3, payment will be made as soon as practicable after the end of the Performance Period, or any earlier event that causes the Performance Shares to be earned, and the determination by the Board of the level of attainment of Total Stockholder Return, but, subject to Section 10 below, in no event shall such payment occur later than two and one-half months after the end of the Performance Period or such earlier event occurs.  Upon and after payment of any Performance Shares pursuant to this Section 6, such Performance Shares shall not be considered to be outstanding.  Notwithstanding the foregoing, if the event that causes the Performance Shares to be earned is a Change in Control that does not constitute a change of control for purposes of 

Section 409A of the Code, then to the extent necessary to comply with Section 409A of the Code, payment will be made on the next date or event under the Agreement that constitutes a permissible payment date or event under Code Section 409A.  To the extent that the Company or any Subsidiary is required to withhold any federal, state, local or foreign tax in connection with the payment of earned Performance Shares pursuant to this Agreement, it shall be a condition to the receipt of such Performance Shares that the Grantee make arrangements satisfactory to the Company or such Subsidiary for payment of such taxes required to be withheld, which may include by having the Company withhold Common Shares otherwise payable pursuant to this award.

		
	7.
	Payment of Dividends.  No dividends shall be accrued or earned with respect to the Performance Shares until such Performance Shares are earned by the Grantee as provided in this Agreement.

		
	8.
	Performance Shares Nontransferable.  Until payment is made to the Grantee as provided herein, neither the Performance Shares granted hereby nor any interest therein or in the Common Shares related thereto shall be transferable other than by will or the laws of descent and distribution prior to payment.

		
	9.
	Adjustments.  In the event of any change in the aggregate number of outstanding Common Shares by reason of (a) any stock dividend, extraordinary dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (b) any Change in Control, merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization or partial or complete liquidation, or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing, then the Board shall adjust the number of Performance Shares then held by the Grantee in such manner as to prevent dilution or enlargement of the rights of the Grantee that otherwise would result from such event.  Moreover, in the event of any such transaction or event, the Board (or a committee of the Board), in its discretion, may provide in substitution for any or all of the Grantee’s rights under this Agreement such alternative consideration as it may determine to be equitable in the circumstances, subject to the provisions of Section 3 of this Agreement.

		
	10.
	Compliance with Section 409A of the Code.  To the extent applicable, it is intended that this Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Grantee.  This Agreement and the Plan shall be administered in a manner consistent with this intent.  Reference to Section 409A of the Code is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any regulations or any other formal guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.  If the event triggering the right to payment under this Agreement is the Grantee’s Retirement or other separation from service with the Company and its Subsidiaries within the meaning of Section 409A(a)(2)(A)(i) of the Code and the Grantee is a “specified employee” as determined pursuant to procedures adopted by the Company in compliance with Section 409A of the Code, the date of payment under Section 6 above shall be the first day of the seventh month after the date of the Grantee’s separation from service or, if earlier, the date of the Grantee’s death.

		
	11.
	No Right to Future Grants; No Right of Employment; Extraordinary Item: In accepting the grant, Grantee acknowledges that:  (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, suspended or terminated by the Company at any time, as provided in the Plan and this Award Agreement; (b) the grant of the Performance Shares is voluntary and occasional and does not create any contractual or other right to receive future grants 

of Performance Shares  or benefits in lieu of Performance Shares, even if Performance Shares have been granted repeatedly in the past; (c) all decisions with respect to future grants, if any, will be at the sole discretion of the Company; (d) the Grantee’s participation in the Plan is voluntary; (e) the Performance Shares are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company, its Affiliates and/or Subsidiaries, and which is outside the scope of Grantee’s employment contract, if any; (f) the Performance Shares are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (g) in the event that Grantee is an employee of an Affiliate or Subsidiary of the Company, the grant will not be interpreted to form an employment contract or relationship with the Company; and furthermore, the grant will not be interpreted to form an employment contract with the Affiliate or Subsidiary that is Grantee’s employer; (h) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (i) no claim or entitlement to compensation or damages arises from forfeiture or termination of the Performance Shares or diminution in value of the Performance Shares or the Shares and Grantee irrevocably releases the Company, its Affiliates and/or its Subsidiaries from any such claim that may arise; and (j) notwithstanding any terms or conditions of the Plan to the contrary, in the event of involuntary termination of Grantee’s employment, Grantee’s right to receive Performance Shares and vest in Performance Shares under the Plan, if any, will terminate effective as of the date that Grantee is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of involuntary termination of employment, Grantee’s right to vest in the Performance Shares after termination of employment, if any, will be measured by the date of termination of Grantee’s active employment and will not be extended by any notice period mandated under local law.

		
	12.
	Continuous Employment.  For purposes of this Agreement, the continuous employment of the Grantee with the Company or a Subsidiary shall not be deemed to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of the Company or Subsidiary, by reason of (a) the transfer of the Grantee’s employment among the Company and its Subsidiaries or (b) an approved leave of absence.

		
	13.
	Employee Data Privacy: Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Grantee’s personal data as described in this document by and among, as applicable, the Company, its Affiliates and its Subsidiaries (“the Company Group”) for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan. Grantee’s understands that the Company Group holds certain personal information about Grantee, including, but not limited to, Grantee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares of stock or directorships held in the Company, details of all Performance Shares or any other entitlement to Shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Grantee’s favor, for the purpose of implementing, administering and managing the Plan (“Data”). Grantee understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Grantee’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Grantee’s country. The Grantee understands that the Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting Grantee’s local human resources representative. Grantee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other 

form, for the purposes of implementing, administering and managing Grantee’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom Grantee may elect to deposit any Shares acquired. Grantee understands that Data will be held only as long as is necessary to implement, administer and manage Grantee’s participation in the Plan. Grantee understands that Grantee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Grantee’s local human resources representative. Grantee understands, however, that refusing or withdrawing Grantee’s consent may affect Grantee’s ability to participate in the Plan. For more information on the consequences of Grantee’s refusal to consent or withdrawal of consent, Grantee understand that Grantee may contact Grantee’s local human resources representative.

		
	14.
	Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.  All terms used herein with initial capital letters and not otherwise defined herein that are defined in the Plan shall have the meanings assigned to them in the Plan.  The Board acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any questions which arise in connection with the grant of the Performance Shares. 

		
	15.
	Amendments.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of the Grantee under this Agreement without the Grantee’s consent.  Notwithstanding the foregoing, the limitation requiring the consent of a Grantee to certain amendments shall not apply to any amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code.

		
	16.
	Severability.  Subject to Section 20, if any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstances shall not be affected, and the provisions so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent (and only to the extent) necessary to make it enforceable, valid and legal.

		
	17.
	Successors and Assigns.  Without limiting Section 8 hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and assigns of the Company.

		
	18.
	Governing Law.  This Agreement shall be governed by and construed in accordance with the internal substantive laws of the State of Delaware, without giving effect to any principle of law that would result in the application of the law of any other jurisdiction.

		
	19.
	The Grantee acknowledges that by clicking on the “Accept” button on the Morgan Stanley Wealth Management web page titled “Step 3: Confirm the Review/Acceptance of your Award,” the Grantee agrees to be bound by the electronic execution of this Award Agreement.  

		
	20.
	In accordance with Section 20(d) of the Plan, if the Board (or a committee of the Board) has determined that any fraud or intentional misconduct by the Grantee was a significant contributing factor to the Company having to restate all or a portion of its financial statement(s), to the extent 

permitted by applicable law the Grantee shall: (a) return to the Company all Performance Shares and/or Common Shares that the Grantee has not disposed of that were paid out pursuant to this Agreement; and (b) with respect to any Performance Shares and/or Common Shares that the Grantee has disposed of that were paid out pursuant to this Agreement, pay to the Company in cash the value of such Performance Shares on the date such Performance Shares were paid out.  The remedy specified herein shall not be exclusive, and shall be in addition to every other right or remedy at law or in equity that may be available to the Company.  Notwithstanding any other provision of this Agreement or the Plan to the contrary, if this Section 20 is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement shall be deemed to be unenforceable due to a failure of consideration, and the Grantee’s rights to the Performance Shares and/or Common Shares that would otherwise be granted or paid under this Agreement shall be forfeited.

Executed in the name and on behalf of the Company at Chicago, Illinois as of the 12th day of February, 2014.

USG CORPORATION

	
		
	 
	 

	Name:
	Brian J. Cook

	Title:
	Senior Vice President,

	 
	Human Resources and Corporate

	 
	Communications

                            

The undersigned Grantee hereby accepts the award of Performance Shares evidenced by this Performance Shares Agreement on the terms and conditions set forth herein and in the Plan.

                            
	
		
	 
	 

	Name:
	 

PLEASE PRINT AND KEEP A COPY FOR YOUR RECORDS.

EXHIBIT A TO
 USG CORPORATION
PERFORMANCE SHARES AGREEMENT

This Exhibit A is attached to and forms a part of the USG Corporation Performance Shares Agreement, dated as of February 12, 2014.

Solely for the purposes of this Agreement, the following terms shall be defined as follows:

		
	(A)
	An award of Performance Shares shall be considered “Assumed” in connection with a Change in Control if each of the following conditions is met:

		
	(1)
	The award of Performance Shares is converted into a replacement award that preserves the value of such award at the time of the Change in Control;

		
	(2)
	the replacement award contains provisions for scheduled vesting and treatment on termination of employment (including the definitions of Cause and Good Reason) that are no less favorable to the Grantee than as set forth in this Agreement, and all other terms of the replacement award (other than the security and number of shares represented by the replacement awards) are substantially similar to, or more favorable to the Grantee than, those set forth in this Agreement; and

		
	(3)
	the security represented by the replacement award, if any, is of a class that is publicly held and widely traded on an established stock exchange.

		
	(B)
	“Base Pay” means Grantee’s annual base salary rate as in effect from time to time.

		
	(C)
	“Cause” shall mean that the Grantee shall have:

		
	(1)
	been convicted of a criminal violation involving fraud, embezzlement or theft in connection with the Grantee’s duties or in the course of the Grantee’s employment with the Company or any Subsidiary;

		
	(2)
	committed intentional wrongful damage to tangible or intangible property of the Company or any Subsidiary; or

		
	(3)
	committed intentional wrongful disclosure of secret processes or confidential information of the Company or any Subsidiary.

    
For purposes of this Agreement, no act or failure to act on the part of the Grantee will be deemed “intentional” if it was due primarily to an error in judgment or negligence, but will be deemed “intentional” only if done or omitted to be done by the Grantee not in good faith and without reasonable belief that the Grantee’s action or omission was in the best interest of the Company.  Notwithstanding the foregoing, the Grantee will not be deemed to have been terminated for “Cause” hereunder unless and until there shall have been delivered to the Grantee a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board then in office (excluding the Grantee if the Grantee is then a member of the Board) at a meeting of the Board called and held for such purpose, after reasonable notice to the Grantee and an opportunity for the Grantee, together with the Grantee’s counsel (if the Grantee chooses to have counsel present at such meeting), 

to be heard before the Board, finding that, in the good faith opinion of the Board, the Grantee had committed an act constituting “Cause” as herein defined and specifying the particulars thereof in reasonable detail.  Nothing herein will limit the right of the Grantee or the Grantee’s beneficiaries to contest the validity or propriety of any such determination.
		
	(D)
	“Disability” shall mean that the Grantee has suffered a total disability within the meaning of the Company’s Long Term Disability Plan for Salaried Employees and is “disabled” within the meaning of Section 409A(a)(2)(C) of the Code.

		
	(E)
	“Good Reason” shall mean the occurrence of any of the following events, and the failure of the Company to remedy any of the following events within 10 calendar days after receipt by the Company of written notice thereof from the Grantee:

		
	(1)
	a material diminution in the Grantee’s normal duties and responsibilities, including, but not limited to, the assignment without the Grantee’s written consent of any diminished duties and responsibilities which are inconsistent with the Grantee’s positions, duties and responsibilities with the Company immediately prior to a Change in Control, or a materially adverse change in the Grantee’s reporting responsibilities or titles as in effect immediately prior to the Change in Control, whether or not resulting from an act of the Company or otherwise, or any removal of the Grantee from or any failure to re-elect the Grantee to any of such positions, except in connection with the termination of the Grantee’s employment for Disability, Retirement, or Cause or as a result of the Grantee’s death or by the Grantee other than for Good Reason;

		
	(2)
	if the Grantee was serving as a member of the Board immediately prior to the Change in Control, either (A) the failure to elect or the removal of the Grantee as a member of the Board of the Company (or any successor thereto) or (B) if the Grantee continues to serve as a member of the Board of the Company (or any successor thereto) following the Change in Control, the Company’s securities are no longer publicly traded; provided, however, that Good Reason shall not exist if the Grantee becomes a member of the board of directors of a publicly-traded entity that as a result of the Change in Control owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries;

		
	(3)
	a reduction by the Company in the Grantee’s Base Pay as in effect on the Date of Grant or as the same may be increased from time to time;

		
	(4)
	a change in the Grantee’s Target Annual Direct Compensation that results in an aggregate decrease in such Target Annual Direct Compensation in excess of ten percent (10%);

		
	(5)
	the Company’s requiring the Grantee, without the Grantee’s written consent, to be based anywhere other than within fifty (50) miles of the Grantee’s office location immediately prior to the Change in Control, except for required travel on the Company’s business to an extent substantially consistent with business travel obligations immediately prior to the Change in Control;

		
	(6)
	the failure by the Company to continue in effect any investment plan, retirement plan, savings plan, supplemental retirement plan, deferred compensation plan, supplemental investment plan, life insurance plan, health and accident plan, disability plan or other welfare benefit plan in which the Grantee was participating at the time of the Change in Control (or plans providing the Grantee with substantially similar benefits), the taking of any action by the Company which would adversely affect the Grantee’s participation or materially reduce the Grantee’s benefits or value under any of such plans or deprive the Grantee of any material fringe benefit enjoyed by the Grantee at the time of the Change in Control, or the failure by the Company to provide the Grantee with the number of paid vacation days to which the Grantee was then entitled in accordance with the Company’s normal vacation policy in effect on the date of the Change in Control; or

		
	(7)
	the failure by the Company to obtain the assumption of the obligation to perform any Change in Control Severance Agreement between the Company and Grantee by any successor as contemplated in such Change in Control Severance Agreement.

		
	(F)
	“Retirement” shall mean the Grantee’s retirement under a retirement plan (including, without limitation, any supplemental retirement plan) of the Company or any Subsidiary, or the Grantee’s retirement from employment with the Company or any Subsidiary after completing at least three years of continuous service with the Company or any Subsidiary and attaining the age of 62.  Without limiting the generality of the foregoing, in no event shall “Retirement” include the involuntary termination of the Grantee’s employment by the Company (i) for Cause or (ii) without Cause if, as a result of such termination without Cause, the Grantee becomes eligible to receive payments on account of such termination under an employment agreement between the Grantee and the Company.

		
	(G)
	“Target Annual Direct Compensation” means the sum of the Grantee’s Base Pay, target annual incentive opportunity, and the annualized value of the most recent long-term incentive award approved by the Compensation and Organization Committee of the Board prior to the Change in Control.  For purposes of measuring annualized long-term incentives, the awards shall be measured on their date of grant using reasonable assumptions, including, but not limited to, fair value principles such as those identified in Financial Accounting Standards Board Accounting Standards Codification Topic 718; the value of such awards shall be annualized over the frequency of their grant.ex10-1.htm

EXHIBIT 10.1

FOURTH AMENDMENT TO OFFICE LEASE

 

This Fourth Amendment to Office Lease (this “Fourth Amendment”), dated February 10, 2014, is made by and between DOUGLAS EMMETT 1993, LLC, a Delaware limited liability company (Landlord”), with offices at 808 Wilshire Boulevard, Suite 200, Santa Monica, California 90401, and CytRx CORPORATION, a Delaware corporation (“Tenant”), with offices at 11726 San Vicente Boulevard, Suite 650A, Los Angeles, California 90049.

 

WHEREAS,

 

A. DOUGLAS EMMETT JOINT VENTURE, a California general partnership (“DEJV”), pursuant to the provisions of that certain Office Lease dated April 13, 2000 (the “Original Lease”), leased to THE KRIEGSMAN CAPITAL GROUP, LLC, a California limited liability company (“Original Tenant”), and Original Tenant leased from DEJV space in the property located at 11726 San Vicente Boulevard, Los Angeles, California (the “Building”), commonly known as Suite 650 (the “Original Premises”);

 

B. Landlord, Original Tenant and Tenant subsequently entered into that certain Assignment, Assumption and Consent dated July 31, 2003 (the “Assignment”), whereby Original Tenant assigned all of its right, title and interest in and to the Original Lease to Tenant, and Tenant assumed all of Original Tenant’s obligations under the Original Lease;

 

C. Landlord acquired all of DEJV’s interest, right and title in and to the real property and Building in which the Premises are located, becoming successor-in-interest to DEJV and landlord under the Original Lease;

 

D. Landlord and Tenant subsequently entered into that certain First Amendment to Office Lease dated October 14, 2005 (the “First Amendment”), pursuant to which Tenant expanded its occupancy within the Building to include Suite 688; that certain Second Amendment to Office Lease dated March 25, 2008 (the “Second Amendment”); that certain Third Amendment to Office Lease dated November 30, 2009 (the “Third Amendment”), pursuant to which Tenant surrendered possession of the Original Premises and leased Suite 600 (which Suite 600, together with Suite 688, was subsequently renamed Suite 650A and shall hereinafter be collectively referred to as the “Premises”); and that certain Memorandum of Lease Term Dates and Rent dated March 19, 2010 (the “Memorandum”);

 

E.           The term of the Lease expires February 28, 2015, which term Landlord and Tenant wish to hereby extend; and

 

F.           Landlord and Tenant, for their mutual benefit, wish to revise certain other covenants and provisions of the Original Lease, as amended.

 

NOW, THEREFORE, in consideration of the covenants and provisions contained herein, and other good and valuable consideration, the sufficiency of which Landlord and Tenant hereby acknowledge, Landlord and Tenant agree:

 

1.           Confirmation of Defined Terms.  Unless modified herein, all terms previously defined and capitalized in the Original Lease, as amended, shall hold the same meaning for the purposes of this Fourth Amendment.  The Original Lease, as modified by the First Amendment, the Second Amendment, the Third Amendment, the Memorandum and this Fourth Amendment, shall hereinafter be referred to as the “Lease.”

 

2.           Extension of Term.  The term of the Lease is hereby extended for a period of five (5) years (the “Fourth Extended Term”), from and including March 1, 2015 (the “Effective Date”), through and including midnight on February 29, 2020 (the “Termination Date”).

 

3.           Revision in Fixed Monthly Rent.  Commencing on the Effective Date, and continuing through February 29, 2016, the Fixed Monthly Rent payable by Tenant shall be $19,225.65 per month.

 

Commencing on March 1, 2016, and continuing through February 28, 2017, the Fixed Monthly Rent payable by Tenant shall increase from $19,225.65 per month to $19,802.42 per month.

 

Commencing on March 1, 2017, and continuing through February 28, 2018, the Fixed Monthly Rent payable by Tenant shall increase from $19,802.42 per month to $20,396.49 per month.

 

Commencing March 1, 2018, and continuing through February 28, 2019, the Fixed Monthly Rent payable by Tenant shall increase from $20,396.49 per month to $21,008.39 per month.

 

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Commencing March 1, 2019, and continuing throughout the remainder of the Fourth Extended Term, the Fixed Monthly Rent payable by Tenant shall increase from $21,008.39 per month to $21,638.64 per month.

 

Notwithstanding the foregoing, Tenant shall be permitted to defer one hundred percent (100%) of the Fixed Monthly Rent due for the calendar month of March 2016 (the amount of Fixed Monthly Rent deferred shall be referred to herein as the “Rent Deferral Amount”).  So long as Tenant has not committed a material default during the Fourth Extended Term, which material default continues after the expiration of any notice and cure period, the entire Rent Deferral Amount shall be abated and forgiven as of the Termination Date; provided, however, that if Tenant does commit a material default during the Fourth Extended Term, and if such material default continues after the expiration of any notice and cure periods, then (a) Tenant shall pay to Landlord upon demand the entire Rent Deferral Amount due for the months of the Fourth Extended Term prior to the occurrence of such material default, as if the same had been due if the rent deferral had not occurred, and (b) Tenant shall not be entitled to any additional or future deferral of Fixed Monthly Rent.

 

All payments of Fixed Monthly Rent shall be made in immediately available funds.

 

4.           Modification to Security Deposit.  Landlord acknowledges that it currently holds the sum of $101,160.14 as a Security Deposit under the Lease, which amount shall be reduced to $75,000.00 on March 1, 2014 subject to the terms and conditions set forth in Section 9.1 of the Third Amendment and shall be subject to further reduction as set forth in Section 4.1 below.  Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other laws, statutes, ordinances or other governmental rules, regulations or requirements now in force or which may hereafter be enacted or promulgated, which (i) establish the time frame by which Landlord must refund a security deposit under a lease, and/or (ii) provide that Landlord may claim from the Security Deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in Article 18 of the Original Lease, and/or those sums reasonably necessary to compensate Landlord for any loss or damage caused by Tenant's breach of the Lease or the acts or omission of Tenant or any Tenant Party. As used in the Lease a “Tenant Party” shall mean Tenant, any employee of Tenant, or any agent, authorized representative, design consultant or construction manager engaged by or under the control of Tenant.

 

Section 4.1                                Corresponding Reduction to Security Deposit and Rent Offset.

 

(a)  Subject to Section 4.1(b) below and notwithstanding the foregoing provisions of Section 4 to the contrary, during the Fourth Extended Term, the Security Deposit for the Premises shall be reduced and a portion applied to the Fixed Monthly Rent payable by Tenant for the Premises as follows:

 

i) on or about the first (1st) business day of March 2015, the Security Deposit shall be proportionately reduced by an amount equal to the Fixed Monthly Rent due for March 2015 (“First Reduction”), which amount is $19,225.65, and the total sum of the First Reduction shall be applied to Fixed Monthly Rent due for March 2015, so that the balance of the Security Deposit then remaining shall be $55,774.35;

 

ii)  on or about the first (1st) business day of April 2015, the balance of the Security Deposit after the First Reduction shall be proportionately reduced by an amount equal to the Fixed Monthly Rent due for April 2015 (“Second Reduction”), which amount is $19,225.65, and the total sum of the Second Reduction shall be applied to Fixed Monthly Rent due for April 2015, so that the balance of the Security Deposit then remaining shall be $36,548.70; and

 

iii)  on or about the first (1st) business day of May 2015, the balance of the Security Deposit after the Second Reduction shall be proportionately reduced by the amount of $14,910.06 (“Third Reduction”), which amount shall be applied to Fixed Monthly Rent due for May 2015 (and, accordingly the amount of Fixed Monthly Rent due for the month of May 2015 shall be $4,315.59), and thereafter the balance of the Security Deposit then remaining shall be $21,638.64, which amount Landlord shall continue to hold throughout the Fourth Extended Term, unless otherwise applied pursuant to the provisions of the Lease.

 

  

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(b)  Notwithstanding the scheduled applications to Fixed Monthly Rent set forth above, in the event Tenant commits a material default of any of its obligations under the Lease prior to any of the scheduled applications of the Security Deposit to Fixed Monthly Rent, and such material default continues after any applicable notice and cure period, then the Security Deposit shall thereafter remain on deposit with Landlord in the full amount then held and no additional reductions in the Security Deposit or future applications to Fixed Monthly Rent shall occur thereafter. The remedies granted to Landlord under this Section 4.1 shall be in addition to and not in lieu of any and all remedies of Landlord under the Lease and applicable law.

 

 

5.           Base Year.  As of the Effective Date, the Base Year for the Premises shall be calendar year 2015.

 

6.           Tenant’s Share. As of the Effective Date, Tenant’s Share for the Premises shall be 6.33%.

 

7.           Parking.  Tenant shall continue to have the parking rights and obligations set forth in Section 10 of the Third Amendment throughout the Fourth Extended Term.

 

8.           One-Time Right of First Offer.

 

8.1.           One-Time Right of First Offer.

 

a)           Subject to any pre-existing rights of first offer and/or refusal which Landlord or Landlord’s predecessors may have granted other tenants in the Building at the time this Fourth Amendment is executed; and

 

b)           Upon Landlord’s receipt of written notification (“Tenant’s Expansion Notice”) from Tenant that Tenant desires additional space in the Building on the sixth (6th) floor; and

 

c)           Provided Tenant is not in material uncured default after the expiration of time and the opportunity to cure as of the date or any time after Tenant tenders to Landlord Tenant’s Expansion Notice; and

 

d)           At least eighteen (18) months remain before expiration of the Fourth Extended Term, or Tenant is willing to enter into an extension of the Fourth Extended Term for a minimum of eighteen (18) additional months;

 

then, Landlord grants Tenant a one-time right of first offer to lease any space on the sixth (6th) floor of the Building (the "Expansion Premises") that is vacated and available for rent (or will be vacated and available for rent in the near future) following Tenant’s Expansion Notice during the Fourth Extended Term, as follows:

 

If Landlord has knowledge that any space within the Expansion Premises is vacated and available for lease (or will be vacated and available for lease in the near future) at any time during the Fourth Extended Term, Landlord shall give written notice thereof (the “Offer Notice”) to Tenant, specifying the terms and conditions upon which Landlord is willing to lease the Expansion Premises that is available (or will be available in the near future).

 

  

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8.2.           Tenant’s Acceptance.  Tenant shall have five (5) days after receipt of the Offer Notice from Landlord to advise Landlord of Tenant’s election (the “Acceptance”) to lease the Expansion Premises on the same terms and conditions as Landlord has specified in its Offer Notice.  Tenant’s right of first offer shall apply only to the entirety of the Expansion Premises offered, and Tenant shall have no right to exercise the right of first offer as to only a portion of the Expansion Premises offered.  If the Acceptance is so given, then within ten (10) days thereafter, Landlord and Tenant shall sign an amendment to the Lease, adding the Expansion Premises to the Premises (with the term of the Expansion Premises to commence after the Expansion Premises is vacated and thereafter becomes available for lease) and incorporating all of the terms and conditions originally contained in Landlord’s Offer Notice.

 

8.3.           Failure to Accept Extinguishes Rights.  If Tenant does not tender the Acceptance of Landlord’s Offer Notice, or if Tenant’s Acceptance is conditional or purports to modify any material term contained in Landlord’s Offer Notice, or if Landlord and Tenant fail to execute the amendment to Lease called for above within the time period specified, then Landlord may lease such portion of the Expansion Premises as is then available to any third party it chooses without liability to Tenant on terms and conditions reasonably similar to those specified in Landlord’s Offer Notice, and Tenant’s right of first offer shall be null and void thereafter.

 

8.4.           No Assignment of Right.  This right is personal to the original Tenant signing this Fourth Amendment, and shall be null, void and of no further force or effect as of the date that Tenant assigns the Lease to an unaffiliated entity and/or subleases more than forty-nine percent (49%) of the total rentable area of the Premises.

 

9.           Acceptance of Premises.  Tenant acknowledges that it has been in possession of the Premises for over four (4) years, and to the best of Tenant’s knowledge as of the date hereof, has no claim against Landlord.  Tenant has made its own inspection of and inquiries regarding the Premises, which is already improved.  Therefore, except for the improvements to be performed by Landlord’s contractor pursuant to Section 9.1 below, Tenant accepts the Premises in its “as-is” condition.  Tenant further acknowledges that Landlord has made no currently effective representation or warranty, express or implied except as are contained in the Lease regarding the condition, suitability or usability of the Premises or the Building for the purposes intended by Tenant.

 

9.1.           Improvements.  Concurrent with Tenant’s occupancy of the Premises, Landlord shall, at Landlord’s sole expense, complete the following improvements to the Premises (the “Improvements”), using Building standard materials, provided that Landlord’s installation of the Improvements shall not entitle Tenant to any set-off or rent abatement:

 

a)  Furnish and install new carpet and/or vinyl composition tile (VCT) in the Premises, using Building standard materials in a single color that is reasonably acceptable to Tenant; and

 

b)  Paint the interior walls of the Premises that were previously painted, using Building standard materials and two (2) coats of paint, in a single color reasonably acceptable to Tenant.

 

Tenant shall provide Landlord with Tenant’s selection of color finishes for paint and carpet (or VCT) on or before the date that is ten (10) days after this Fourth Amendment is fully-executed.  If Tenant fails to provide Landlord with Tenant’s selection by the date set forth hereinabove, Landlord shall not be obligated to complete the Improvements.  Tenant acknowledges that Landlord shall have no obligation to commence the Improvements prior to the Effective Date or to commence or complete work on the Improvements after the date that is twelve (12) months after this Fourth Amendment is fully-executed.

 

If Tenant elects to make any other improvements to the Premises during the Fourth Extended Term, the same shall be considered a Tenant Change, to be completed by Tenant, at Tenant's sole expense, pursuant to the provisions of Article 12 of the Original Lease.

 

Landlord shall, at Landlord’s cost and expense, move Tenant’s furniture and equipment so that Landlord may complete the Improvements; provided, however, Tenant shall remove all files, personal effects and other items to allow Landlord’s agent to move such files and equipment, and Landlord shall have no liability or obligation to remove Tenant’s files, wall hangings, art, personal effects or other items other than furniture and equipment.

 

  

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10.           Option to Extend Term.  Provided Tenant is not in material default after the expiration of notice and the opportunity to cure on the date or at any time during the remainder of the Fourth Extended Term after Tenant gives notice to Landlord of Tenant’s exercise of its rights pursuant to this Section 10, Tenant is given the option to extend the term for an additional five (5) year period (the “Fifth Extended Term”), commencing the next calendar day after the expiration of the Fourth Extended Term (the “Option”).  The Option shall apply only to the entirety of the Premises, and Tenant shall have no right to exercise the Option as to only a portion of the Premises.

 

Tenant’s exercise of this Option is contingent upon Tenant giving written notice to Landlord (the “Option Notice”) of Tenant’s election to exercise its rights pursuant to this Option by Certified Mail, Return Receipt Requested, no more than twelve (12) months and no less than nine (9) months prior to the Termination Date.  The Option Notice shall be irrevocable.

 

10.1.           Fixed Monthly Rent Payable.  The Rent payable by Tenant during the Fifth Extended Term (“Option Rent”) shall be equal to the Fair Market Value of the Premises as of the commencement date of the Fifth Extended Term.  The term “Fair Market Value” shall be defined as the effective rent reasonably achievable by Landlord, and shall include but not be limited to, all economic benefits obtainable by Landlord, such as Fixed Monthly Rent (including periodic adjustments), Additional Rent in the form of Operating Expense reimbursements, and any and all other monetary or non-monetary consideration that may be given in the market place to a non-renewal tenant, as is chargeable for a similar use of comparable space in the geographic area of the Premises.  Said computation shall specifically be based on the Premises in its “as-is” condition, without payment of any brokerage commission to any broker.

 

Landlord and Tenant shall have thirty (30) days (the “Negotiation Period”) after Landlord receives the Option Notice in which to agree on the Fair Market Value.  If Landlord and Tenant agree on the Fair Market Value during the Negotiation Period, they shall immediately execute an amendment to the Lease extending the Fourth Extended Term and stating the Fair Market Value.

 

10.2.           Appraisers to Set Fixed Monthly Rent.  If Landlord and Tenant are unable to agree on the Fair Market Value during the Negotiation Period, then:

 

a)           Landlord and Tenant, each at its own cost, shall select an independent real estate appraiser with at least ten (10) years full-time commercial appraisal experience in the area in which the Premises are located, and shall provide written notice to the other party of the identity and address of the appraiser so appointed.  Landlord and Tenant shall make such selection within ten (10) days after the expiration of the Negotiation Period; and

 

b)           Within thirty (30) days of having been appointed to do so (the “Appraisal Period”), the two (2) appraisers so appointed shall meet and set the Fair Market Value for the Fifth Extended Term.  In setting the Fair Market Value, the appraisers shall solely consider the use of the Premises for general office purposes.

 

10.3.           Failure by Appraisers to Set Fair Market Value.  If the two (2) appointed appraisers are unable to agree on the Fair Market Value within ten (10) days after expiration of the Appraisal Period, they shall elect a third appraiser of like or better qualifications, and who has not previously acted in any capacity for either Landlord or Tenant.  Landlord and Tenant shall each bear one half of the costs of the third appraiser’s fee.

 

Within thirty (30) days after the selection of the third appraiser (the “Second Appraisal Period”) the Fair Market Value for the Fifth Extended Term shall be set by a majority of the appraisers now appointed.  If a majority of the appraisers are unable to set the Fair Market Value within the Second Appraisal Period, the three (3) appraisers shall individually render separate appraisals of the Fair Market Value, and their three (3) appraisals shall be added together, then divided by three (3); resulting in an average of the appraisals, which shall be the Fair Market Value during the Fifth Extended Term.

 

  

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However, if the low appraisal or high appraisal varies by more than ten percent (10%) from the middle appraisal, then one (1) or both shall be disregarded.  If only one (1) appraisal is disregarded, the remaining two (2) appraisals shall be added together and their total divided by two (2), and the resulting average shall be the Fair Market Value.  If both the low and high appraisal are disregarded, the middle appraisal shall be the Fair Market Value for the Premises during the Fifth Extended Term.  The appraisers shall immediately notify Landlord and Tenant of the Fair Market Value so established, and Landlord and Tenant shall immediately execute an amendment to the Lease, extending the Fourth Extended Term and revising the Fixed Monthly Rent payable pursuant to the Fair Market Value so established.

 

Tenant’s failure to execute such amendment establishing the Fair Market Value within fifteen (15) days after the other party’s request therefor shall constitute a material default under the Lease.

 

10.4.           No Right of Reinstatement or Further Extension.  Once Tenant has failed to exercise its rights to extend the term pursuant to this Section 10, it shall have no right of reinstatement of its Option, nor shall Tenant have any right to a further or second extension of the Fourth Extended Term beyond the period stated in Section 2 hereinabove.

 

10.5.           No Assignment of Option.  This Option is personal to the original Tenant signing the Lease, and shall be null, void and of no further force or effect as of the date that Tenant assigns the Lease to an unaffiliated entity and/or subleases more than forty-nine percent (49%) of the total Rentable Area of the Premises.

 

11.           Warranty of Authority.  If Landlord or Tenant signs as a corporation, or a limited liability company or a partnership, each of the persons executing this Fourth Amendment on behalf of Landlord or Tenant hereby covenants and warrants that the applicable entity executing herein below is a duly authorized and existing entity that is qualified to do business in California; that the person(s) signing on behalf of either Landlord or Tenant have full right and authority to enter into this Fourth Amendment; and that each and every person signing on behalf of either Landlord or Tenant are authorized in writing to do so.

 

If either signatory hereto is a corporation, the person(s) executing on behalf of said entity shall affix the appropriate corporate seal to each area in the document where request therefor is noted, and the other party shall be entitled to conclusively presume that by doing so the entity for which said corporate seal has been affixed is attesting to and ratifying this Fourth Amendment.

 

12.           Broker Representation.  Landlord and Tenant represent to one another that it has dealt with no broker in connection with this Fourth Amendment other than Douglas Emmett Management, LLC and Stone Miller.  Landlord and Tenant shall hold one another harmless from and against any and all liability, loss, damage, expense, claim, action, demand, suit or obligation arising out of or relating to a breach by the indemnifying party of such representation.  Landlord agrees to pay all commissions due to the brokers listed above created by Tenant’s execution of this Fourth Amendment.

 

13.           Confidentiality.  Landlord and Tenant agree that the covenants and provisions of this Fourth Amendment shall not be divulged to anyone not directly involved in the management, administration, ownership, lending against, or subleasing of the Premises, other than Tenant’s or Landlord's counsel-of-record or leasing or sub-leasing broker of record or as may be required by any governmental agency or by subpoena or court order.

 

14.           Governing Law.  The provisions of this Fourth Amendment shall be governed by the laws of the State of California.

 

  

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15.           Reaffirmation.  Landlord and Tenant acknowledge and agree that the Lease, as amended herein, constitutes the entire agreement by and between Landlord and Tenant relating to the Premises, and supersedes any and all other agreements written or oral between the parties hereto.  Furthermore, except as modified herein, all other covenants and provisions of the Lease shall remain unmodified and in full force and effect.

 

16.           Civil Code Section 1938 Disclosure.  Pursuant to California Civil Code Section 1938, Landlord hereby discloses that the Premises have not undergone an inspection by a Certified Access Specialist to determine whether the Premises meet all applicable construction-related accessibility standards.

 

17.           Submission of Document.  No expanded contractual or other rights shall exist between Landlord and Tenant with respect to the Premises, as contemplated under this Fourth Amendment, until both Landlord and Tenant have executed and delivered this Fourth Amendment, whether or not any additional rental or security deposits have been received by Landlord, and notwithstanding that Landlord has delivered to Tenant an unexecuted copy of this Fourth Amendment.

 

The submission of this Fourth Amendment to Tenant shall be for examination purposes only, and does not and shall not constitute a reservation of or an option for the Tenant to lease the Premises, or otherwise create any interest by Tenant in the Premises or any other portion of the Building other than the original Premises currently occupied by Tenant.  Execution of this Fourth Amendment by Tenant and its return to Landlord shall not be binding upon Landlord, notwithstanding any time interval, until Landlord has in fact executed and delivered this Fourth Amendment to Tenant.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this document, effective as of the later of the date(s) written below.

 

	
LANDLORD:

	
TENANT:

	
DOUGLAS EMMETT 1993, LLC,

a Delaware limited liability company

 

By:           Douglas Emmett Management, Inc.,

a Delaware corporation, its Manager

   

By:______________________________

     Michael J. Means

  Senior Vice President

 

Dated:___________________________

 

	
CytRx CORPORATION,

a Delaware corporation

 

 

By:           ________________________________

Name:                      ________________________________

Title:                        ________________________________

Dated:      ________________________________

 

By:           ________________________________

Name:                      ________________________________

Title:                        ________________________________

Dated:      ________________________________

	  	                                         

 

  

7

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