Document:

cmpx-ex42_124.htm

Exhibit 4.2

Description of the Registrant’s Securities Registered Pursuant to

Section 12 of the Securities Exchange Act of 1934, as amended

The common stock, par value $0.0001 per share (“Common Stock”), of Compass Therapeutics, Inc. (“Compass,” “we,” or “our”) is registered under Section 12 of the Securities Exchange Act of 1934, as amended. The following description sets forth certain general terms and provisions of our Common Stock. These descriptions are in all respects subject to and qualified in their entirety by, and should be read in conjunction with, the applicable provisions of our Amended and Restated Certificate of Incorporation (our “Charter”) and our Amended and Restated By-laws (our “By-laws”), each of which is incorporated herein by reference and copies of which are incorporated by reference as exhibits to our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and the applicable provisions of General Corporation Law of the State of Delaware (the “DGCL”).

Authorized Capital Stock

We are authorized to issue 300,000,000 shares of Common Stock and 10,000,000 shares of preferred stock, par value $0.001 per share (“Preferred Stock”).

Common Stock

Dividends

Holders of our Common Stock are entitled to receive dividends ratably, if any, as may be declared by our board of directors out of legally available funds, subject to any preferential dividend rights of any Preferred Stock then outstanding.

Voting

Holders of our Common Stock are entitled to one vote for each share of our Common Stock held of record for the election of directors and on all matters submitted to a vote of the stockholders. The holders of our Common Stock do not have any cumulative voting rights.

Distributions on Liquidation

In the event of our dissolution, liquidation or winding up, holders of our Common Stock are entitled to share ratably in our net assets legally available after the payment of all our debts and other liabilities, subject to the preferential rights of any Preferred Stock then outstanding. The rights, preferences and privileges of holders of our Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of Preferred Stock that we may designate and issue in the future.

Other Rights

Holders of our Common Stock have no preemptive, subscription, redemption or conversion rights and no sinking fund provisions are applicable to our Common Stock.

Relationship to Preferred Stock

Under our Charter, our board of directors is authorized, without further action by the stockholders, to designate and issue up to an aggregate of 10,000,000 shares of Preferred Stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of our Common Stock. Our board of directors may authorize the issuance of Preferred Stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our Common Stock and the likelihood that such holders will receive dividend payments and payments upon our liquidation.

The purpose of authorizing our board of directors to issue Preferred Stock in one or more series and determine the number of shares in the series and its rights, preferences, privileges and restrictions is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of Preferred Stock, while providing flexibility in connection with possible future financings and acquisitions and other corporate purposes could, under certain circumstances, have the effect of delaying, deferring or preventing a change in control of our company. See the section entitled “Anti-Takeover Effects of Delaware Law and Provisions of our Charter and our By-laws—Undesignated Preferred Stock” for more information.

 

Anti-Takeover Effects of Delaware Law and Provisions of our Charter and our By-laws

Certain provisions of the DGCL and of our Charter and our By-laws could have the effect of delaying, deferring or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids and, as a consequence, they might also inhibit temporary fluctuations in the market price of our Common Stock that often result from actual or rumored hostile takeover attempts. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with our board of directors. These provisions might also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders might otherwise deem to be in their best interests. However, we believe that the advantages gained by protecting our ability to negotiate with any unsolicited and potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current market value of our Common Stock, because, among other reasons, the negotiation of such proposals could improve their terms.

Delaware Anti-Takeover Statute

We are subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

 

	
 
	
•
	
 
	
before the stockholder became interested, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

 

	
 
	
•
	
 
	
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances, but not the outstanding voting stock owned by the interested stockholder; or

 

	
 
	
•
	
 
	
at or after the time the stockholder became interested, the business combination was approved by the board of directors and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

Section 203 defines a business combination to include:

 

	
 
	
•
	
 
	
any merger or consolidation involving the corporation and the interested stockholder;

 

	
 
	
•
	
 
	
any sale, transfer, lease, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

 

	
 
	
•
	
 
	
subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

 

	
 
	
•
	
 
	
subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; and

 

	
 
	
•
	
 
	
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by the entity or person

Choice of Forum

Our By-laws provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for state law claims for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of or based on a breach of a fiduciary duty owed by any of our current or former directors, officers and employees to us or our stockholders, (iii) any action asserting a claim against us or any of our current or former directors, officers, employees or stockholders arising pursuant to any provision of the DGCL, our Charter or our By-Laws, or (iv) any action asserting a claim that is governed by the internal affairs doctrine, in each case subject to the Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein, which we refer to herein as the “Delaware Forum Provision.” The Delaware Forum Provision will not apply to any causes of action arising under the Securities Act and the Exchange Act. Our By-laws further provide that, unless we consent in writing to an alternative forum, the United States District Court for the District of Massachusetts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, which we refer to herein as the “Federal Forum Provision.” We have chosen the United States District Court for the District of Massachusetts as the exclusive forum for such causes of action because our principal executive offices are located in Boston, Massachusetts. In addition, our By-laws provide that any person or entity purchasing or otherwise acquiring any interest in shares of our Common Stock is deemed to have notice of and consented to the foregoing Delaware Forum Provision and Federal Forum Provision.

We recognize that the Delaware Forum Provision and the Federal Forum Provision may impose additional litigation costs on stockholders in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware or the Commonwealth of Massachusetts. Additionally, the forum selection clauses in our By-laws may limit our stockholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us or our directors, officers or employees, which may discourage the filing of lawsuits against us and our directors, officers and employees even though an action, if successful, might benefit our stockholders. Alternatively, if the Federal Forum Provision is found inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could have an adverse effect on our business, financial condition or results of operations. The Court of Chancery of the State of Delaware or the United States District Court for the District of Massachusetts may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.

Board Composition and Filling Vacancies

In accordance with our Charter, our board is divided into three classes serving staggered three-year terms, with one class being elected each year. Our Charter also provides that directors may be removed only for cause and then only by the affirmative vote of the holders of two-thirds or more of the shares then entitled to vote at an election of directors. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of our board, may only be filled by the affirmative vote of a majority of our directors then in office, even if less than a quorum. The classification of directors, together with the limitations on removal of directors and treatment of vacancies, has the effect of making it more difficult for stockholders to change the composition of our board of directors.

No Written Consent of Stockholders

Our Charter provides that all stockholder actions are required to be taken by a vote of the stockholders at an annual or special meeting, and that stockholders may not take any action by written consent in lieu of a meeting. This 

requirement may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our By-laws or removal of directors by our stockholders without holding a meeting of stockholders.

Meetings of Stockholders

Our Charter and our By-Laws provide that only a majority of the members of our board of directors then in office may call special meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon at a special meeting of stockholders. Our By-laws limit the business that may be conducted at an annual meeting of stockholders to those matters properly brought before the meeting.

Advance Notice Requirements

Our By-laws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. Our By-laws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting.

Amendment to our Charter and our By-laws

As required by the DGCL, any amendment of our Charter must first be approved by a majority of our board of directors, and if required by law or our Charter, must thereafter be approved by a majority of the outstanding shares entitled to vote on the amendment and a majority of the outstanding shares of each class entitled to vote thereon as a class, except that the amendment of the provisions relating to stockholder action, board composition, limitation of liability and the amendment of our Charter must be approved by not less than two-thirds of the outstanding shares entitled to vote on the amendment, and not less than two-thirds of the outstanding shares of each class entitled to vote thereon as a class.

Our By-laws may be amended by the affirmative vote of a majority of the directors then in office, subject to any limitations set forth in the By-laws, and may also be amended by the affirmative vote of at least two-thirds of the outstanding shares entitled to vote on the amendment, or, if our board of directors recommends that the stockholders approve the amendment, by the affirmative vote of the majority of the outstanding shares entitled to vote on the amendment, in each case voting together as a single class.

Undesignated Preferred Stock

Our Charter provides for 10,000,000 authorized shares of Preferred Stock. The existence of authorized but unissued shares of Preferred Stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of our stockholders, our board of directors could cause shares of Preferred Stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. The issuance of shares of Preferred Stock could decrease the amount of earnings and assets available for distribution to holders of shares of our Common Stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.cmpx-ex1016_91.htm

 

Exhibit 10.16

 

 

SUBLEASE

 

THIS SUBLEASE (this “Sublease”) is dated for reference purposes as of 1 December 2020 (“Effective Date”), and is made by and between Roche Diagnostics Operations, Inc., a Delaware corporation (“Sublandlord”), and Compass Therapeutics, Inc., a Delaware corporation (“Subtenant”). Sublandlord and Subtenant hereby agree as follows:

 

	
 
	
1.
	
Recitals:

 

	
 
	
1.1
	
Master Lease. ICE BOX, LLC, as lessor (“Landlord”), and Sublandlord entered into that certain lease, dated as of 31 July 2017 (as amended, the “Master Lease”), with respect to the premises located in a multi-story, mixed use building located at 80 Guest Street, Brighton, Massachusetts 02135 (such mixed use building, the “Building”) and identified in the Master Lease (such premises, the “Premises”). A copy of the Master Lease is attached hereto as Exhibit A. Any capitalized term not defined in this Sublease has the meaning ascribed to it in the Master Lease.
	
 

 

	
 
	
1.2
	
Sublandlord desires to (i) sublease to Subtenant, and Subtenant desires to sublease from Sublandlord, approximately 19,112 rentable square feet on the sixth floor of the Building - (the “Building Subleased Premises”) for office and laboratory use; and (ii) permit Subtenant to utilize, and Subtenant desires to utilize 50% of the Chemical Storage Room (as defined in the Master Lease) according to Section 2.1, as each are shown on Exhibit B (the Building Subleased Premises and Subtenant’s portion of the Chemical Storage Room, collectively, the “Subleased Premises”), in accordance with the terms set forth herein. For reference, the proportion of the Subleased Premises to the Premises is 66.01% (“Subtenant’s Share”).
	
 

 

	
 
	
2.
	
Sublease: Subject to the terms hereof, Sublandlord hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the Subleased Premises, with the following conditions:
	
 

 

	
 
	
2.1
	
Sublandlord will permit Subtenant to utilize a portion (50%) of the Chemical Storage Room (as defined in the Master Lease) to store up to 66.67% of the quantity allowed under the applicable permit. Sublandlord at all times shall have right to enter in and through the Chemical Storage Room for any reason or no reason and Subtenant at all times shall maintain and keep clear a walkway at least three feet wide permitting Sublandlord clear access from the entrance of the Chemical Storage Room to Sublandlord’s portion thereof.
	
 

 

	
 
	
2.2
	
Subtenant’s use of its portion of the Chemical Storage Room is subject to the terms and conditions of the Master Lease applicable to the usage of the Chemical Storage Room, including, without limitation, Section 7.5(n) and 7.5(o) of the Master Lease.
	
 

 

	
 
	
3.
	
Term:

 

	
 
	
3.1
	
Sublease Commencement Date. The term (the “Term”) of this Sublease commences on the later of: (i) receipt of Landlord’s Consent (defined below); (ii) 1 December 2020; and
	
 

(iii)the date Sublandlord delivers the Subleased Premises to Subtenant in the condition required under this Sublease (the “Sublease Commencement Date”), and ends on 19 May 2025 (the “Expiration Date”), unless this Sublease is sooner terminated pursuant to its terms. The parties hereby acknowledge that the expiration date of the Master Lease is 19 May 2025 and that Subtenant has no option to extend the Term of this Sublease. Promptly upon the occurrence of the Sublease Commencement Date, Sublandlord and Subtenant shall execute and deliver a letter confirming the actual Sublease Commencement Date, but the failure by either party to execute and deliver such a letter shall have no effect on the actual Sublease Commencement Date, as hereinabove determined.

 

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3.2
	
Early Access. Sublandlord shall permit Subtenant to access the Subleased Premises as may be reasonably necessary for purposes of planning and installing voice and data cabling, equipment, trade fixtures, and the like (such access, “Early Access”) commencing on the later of: (i) receipt of Landlord’s Consent; (ii) 1 November 2020; or
	
 

(iii)Subtenant having delivered to Sublandlord evidence of all insurance required under the Master Lease; provided, however, that (x) during such Early Access Subtenant shall coordinate all Early Access activities with Sublandlord, and Subtenant and its agents shall follow Sublandlord’s safety and health policies and protocols which are provided to Subtenant, as may be modified from time to time; and (y) such Early Access does not materially interfere with Sublandlord’s ongoing business operations. Such Early Access is immediately revoked should Subtenant or its agents fail to follow the foregoing provisos

(x) and (y) after written notice and a two (2) business day opportunity to cure. Such Early Access occupancy is subject to all of the provisions of this Sublease, except for the obligation to pay Additional Rent (as defined below), and does not advance the Expiration Date of this Sublease

 

	
 
	
4.
	
Rent:

 

	
 
	
4.1
	
Base Rent. Sublandlord conditionally waives Subtenant’s obligations to pay Base Rent (as defined below) beginning on the Sublease Commencement Date and ending 31 December 2020, subject to Subtenant performing its obligations under the Sublease in all material respects (the “Rent Abatement Period”). Upon the occurrence of any uncured Event of Default under the Sublease (beyond any applicable notice and cure period), the rent abatement is null and void and shall be promptly reimbursed in full by Subtenant to Sublandlord. (The 12 month period beginning the day after the end of the Rent Abatement Period, and each subsequent 12 month period thereafter, during the Term is a “Rental Year”). Subtenant shall pay to Sublandlord as base rent for the Subleased Premises for each month during the Term the following amount per month (“Base Rent”):
	
 

 

PeriodAnnual Base RentMonthly Base RentBase Rent PSF

 

Sublease Commencement Date through the end of the First Rental Year *

1,280,504.00 USD106,708.67 USD67.00 USD

 

 

********

 

* Subject to the Rent Abatement Period.

 

** Beginning with the Second Rental Year, and with each subsequent Rental Year, the Subleased Premises Base Rent PSF will increase by 2.5% of the previous Rental Year’s Base Rent PSF.

 

	
 
	
4.2
	
Payment. Subtenant shall pay the Base Rent to Sublandlord on or before the first day of each month. Base Rent, and Additional Rent for any period during the Term hereof which is for less than one (1) month of the Term will be a pro rata portion of the monthly installment based on a thirty (30) day month. Subtenant shall pay the Base Rent to Sublandlord without notice or demand and without any deduction, offset, or abatement, in lawful money of the United States of America, to an address as may be designated in writing by Sublandlord. Sublandord shall invoice Subtenant for Additional Rent (as defined in Section 4.3.1) and Subtenant shall pay such invoices within 30 days of receipt. Upon the written request of Subtenant, Sublandlord shall provide supporting documents regarding Additional Rent to the extent received from Landlord. Additional Rent (and any other amounts due from Subtenant to Sublandlord hereunder) shall not include any mark- up.
	
 

 

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4.3
	
Additional Rent.

 

	
 
	
4.3.1
	
Except as otherwise expressly set forth in this Sublease, all monies other than Base Rent required to be paid by Sublandlord under the Master Lease during the Term (including utility costs, Expense Charges, Building Operating Expenses, Tank Costs, Laboratory Operating Expenses, Generator Costs, overtime HVAC service, taxes, insurance, and the like) shall be paid by Subtenant to Sublandlord hereunder in proportion to Subtenant’s Share, as and when such amounts are due under the Master Lease, as incorporated herein. All such amounts payable by Subtenant (and all amounts payable by Subtenant under this Sublease other than Base Rent) are additional rent (“Additional Rent”; Base Rent and Additional Rent, collectively, are and are considered “Rent”). In the event Sublandlord incurs any out-of-pocket costs or expenses (or is billed by Landlord for items) which are directly attributable to services or utilities furnished to or for the Subleased Premises during the Term or otherwise at the request of Subtenant, or with respect to repairs made in the Subleased Premises during the Term or otherwise as a result of Subtenant’s occupancy of the Subleased Premises, such costs and expenses, except as otherwise expressly set forth in this Sublease, are Additional Rent under this Sublease, and Subtenant shall promptly pay Sublandlord or the applicable provider, as the case may be, the amount of such costs and expenses consistent with the terms of Section 4.2.
	
 

 

	
 
	
4.3.2
	
Sublandlord and Subtenant will have access to certain shared space within the Premises, including restrooms, shared hallways and a break area, identified on Exhibit B as “Shared Space” (the “Shared Space”). Subtenant and Sublandlord agree, as a material part of the consideration given by Subtenant to Sublandlord for this Sublease, and except as otherwise expressly set forth in this Sublease, that Subtenant shall pay the costs, expenses, taxes, insurance, and other charges of every kind and nature related to the cleaning, maintenance, and repair of the Shared Space in proportion to Subtenant’s Share (the “Shared Costs”); provided, however, that each of Subtenant and Sublandlord are responsible in full for any repairs due to damage caused by the negligence or willful misconduct of their employees, agents, or invitees. Sublandlord agrees to provide janitorial services to the Shared Space. Sublandlord shall exercise commercially reasonably efforts in attempting to cause Landlord to perform its obligations under the Master Lease for the benefit of the Subtenant, including without limitation: (i) the provision of Subtenant’s Share of Sublandlord’s proportionate share of the Laboratory Services such as pH monitoring and RODI water to the Subleased Premises, and Subtenant shall reimburse Sublandlord for Subtenant’s Share of the Laboratory Services as Additional Rent; (ii) use of the pH neutralization tank and the discharge of Industrial Wastewater to the sewer system serving the Building, (iii) access and use of the freight elevator; and (iv) access and use of Subtenant’s Share of Sublandlord’s proportionate share of the Generator and Emergency Power for the Subleased Premises (the “Master Lease Obligations”). Sublandlord and Subtenant shall cooperate with respect to the coordination of the Shared Space and freight elevator and Sublandlord hereby appoints its Facilities Manager and Subtenant hereby appoints [Compass Employee] of Subtenant, to be responsible for such coordination.
	
 

 

	
 
	
4.4
	
Security Deposit. Subtenant shall deposit with Sublandlord on the Effective Date 320,126.01 USD (the “Security Deposit”), which shall be held by Sublandlord to secure Subtenant’s obligations under this Sublease; however, the Security Deposit is not an advance rental deposit or a measure of Sublandlord’s damages for an Event of Default.
	
 

 

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Following the occurrence of an Event of Default, Sublandlord may use all or any portion of the Security Deposit to satisfy Subtenant’s unperformed obligations hereunder, without prejudice to any of Sublandlord’s other remedies. If so used, Subtenant shall pay Sublandlord an amount that will restore the Security Deposit to its original amount upon demand. In connection with any waiver of a Subtenant default or modification of this Sublease, Sublandlord may require that Subtenant provide Sublandlord with an additional amount to be held as part of the Security Deposit. The unused portion of the Security Deposit will be returned to Subtenant within 30 days following the end of the Term (or earlier termination of this Sublease), provided that Subtenant is not then in default in the performance of its obligations hereunder.

 

	
 
	
4.5
	
Late Payment. If Subtenant fails to duly and timely pay any installment of Base Rent or Additional Rent, Subtenant shall also pay to Sublandlord a late charge of 3% of such overdue amount and interest shall accrue on said overdue amount at the rate of 18% per annum (or such maximum rate allowable by law if lower) from the date such payment was due until the same is paid. The payment of such interest and late charge shall be in addition to all other rights and remedies available to Sublandlord in the case of non- payment. Notwithstanding the foregoing, the first time in each Rental Year Sublandlord determines to charge such late charge and/or interest, it shall so notify Subtenant and such late charge and/or interest shall be deemed waived provided that Subtenant makes such payment within seven (7) days after its receipt of such notice.
	
 

 

	
 
	
5.
	
Holdover. If Subtenant does not surrender the Subleased Premises by the Expiration Date in accordance with the terms of this Sublease, Subtenant shall indemnify, defend, protect and hold harmless Sublandlord from and against all loss and liability resulting from Subtenant’s delay in surrendering the Subleased Premises to Sublandlord, and the holdover rent under Article 12 of the Master Lease shall be 200% of the Base Rent.
	
 

 

	
 
	
6.
	
Repairs and Modifications to the Subleased Premises.

 

	
 
	
6.1
	
The parties acknowledge and agree that Subtenant is subleasing the Subleased Premises on an “as is” basis, and that, except as set forth in Section 6.2, Sublandlord has made no representations or warranties with respect to the condition of the Subleased Premises, and except as set forth in Section 6.2, Sublandlord shall have no obligation whatsoever to make or pay the cost of any alterations, improvements or repairs to the Subleased Premises, including, without limitation, any improvement or repair required to comply with any law. Landlord shall be solely responsible for performance of any repairs required to be performed by Landlord under the terms of the Master Lease. Except as set forth in Section 6.2, by taking possession of the Subleased Premises, Subtenant conclusively shall be deemed to have accepted the Subleased Premises in its as-is, then- existing condition, without any warranty whatsoever of Sublandlord with respect thereto.
	
 

 

	
 
	
6.2
	
Sublandlord shall deliver the Subleased Premises on the Sublease Commencement Date “AS IS” and in broom clean condition, with no warranties granted by Sublandlord or assumed by Subtenant; provided that, prior to the Sublease Commencement Date, Sublandlord at its cost shall demise the Subleased Premises according to Exhibit B. Subtenant may make such other improvements to the Subleased Premises, including without limitation Subtenant’s initial work as set forth on Exhibit D (“Subtenant Initial
	
 

Work”). Subtenant’s Initial Work, as well as any other improvements to the Subleased Premises, are subject to the requirements of the Master Lease, including Sublandlord’s right to approve or require modification to such plans in its reasonable discretion and according to the Master Lease (as incorporated herein) and Landlord’s prior approval rights contained therein. Further, at no time may Subtenant’s Initial Work, or any other alterations or work by Subtenant, result in (i) a lab useable square foot ratio of greater than 50% for the Subleased Premises, and (ii) lab mechanical requirements greater than the building system design (currently, 1.5 cfm / USF and 14 watts / USF). Subtenant must coordinate with with Sublandlord the planning and construction of Subtenant’s Initial Work and any other improvements so as to minimize the impact of the same on Sublandlord and the other tenants in the Building. Subtenant may hire its own architect and contractor 

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to perform such work, subject to the terms of the Master Lease.

 

	
 
	
6.3
	
Subject to the Master Lease, including Landlord’s prior approval rights contained therein, Subtenant shall be provided with Building standard signage and identity signage in the elevator lobby of the 6th floor of the Building and may install signs or lettering on or adjacent to the entry doors to the Subleased Premises as provided in the Master Lease ; provided, however, that any signage rights that Subtenant obtains from Landlord will in no way diminish or negatively affect Sublandlord’s signage rights or existing Sublandlord signage at the Building or Premises. Prior to the Sublease Commencement Date, Sublandlord shall remove all Sublandlord-specific language from the Subleased Premises and repair any damage caused by such work, but has no obligation to remove any other signage.
	
 

 

	
 
	
7.
	
Environmental and Permitting.

 

	
 
	
7.1
	
Hazardous Materials. Subtenant may store Hazardous Materials and Medical Waste in the Chemical Storage Room no greater than 66.67% of Sublandlord’s permitted chemical storage and as apportioned by Section 2.1, subject to Sublandlord’s existing fire permit(s). Subtenant shall store Hazardous Materials and Medical Waste in compliance with Sublandlord’s applicable permit(s) and shall not store Hazardous Materials and Medical Waste in any portion of the Subleased Premises in excess of the amounts in this Section 7.1. Subtenant shall provide a list of its Hazardous Materials and any biological inventory for BL-2 lab, location of storage within the Subleased Premises, and associated quantities to Sublandlord and Landlord before the Sublease Commencement Date and promptly before any material change, for final approval. Subtenant acknowledges and understands that approval of Subtenant’s proposed Hazardous Materials list, biological inventory, and/or quantities is at Landlord’s sole discretion, and Landlord may or may not so approve. Landlord holds and maintains the MWRA permit for the pH neutralization tank and for the discharge of Industrial Wastewater to the sewer system serving the Building. In the event Subtenant’s use of the Subleased Premises requires additional or modified permits, by either Subtenant or Landlord, the costs of such permits shall be carried by Subtenant alone.
	
 

 

	
 
	
7.2
	
Other Permits. Sublandlord and Subtenant shall work together to determine whether Subtenant can operate under some or all of Sublandlord’s existing permits or must obtain its own permit in the following three categories: rDNA permit; flammable liquids permit; gas permit (for compressed gases). To the extent Subtenant is required to obtain its own permit (whether so required by the applicable government agency or in Sublandlord’s sole opinion), Subtenant shall obtain the required permits prior to occupancy at its sole cost and expense and Sublandlord shall provide such cooperation as Subtenant may reasonably request and at Subtenant’s cost and expense in connection therewith.
	
 

 

	
 
	
8.
	
Assumption of Obligations.

 

	
 
	
8.1
	
This Sublease is and at all times shall be subject and subordinate to the Master Lease and the rights of Landlord thereunder. Subtenant hereby expressly assumes and agrees with respect to the Subleased Premises (i) to comply with all provisions of the Master Lease which are incorporated hereunder; and (ii) to perform all the obligations on the part of the “Tenant” to be performed under the terms of the Master Lease; and (iii) to be subject to all breach and Event of Default terms and conditions of the Master Lease with respect to the Subleased Premises. In the event the Master Lease is terminated pursuant to the terms of the Master Lease, this Sublease shall terminate simultaneously with such termination without any liability of Sublandlord to Subtenant. In the event of a conflict between the express provisions of this Sublease on the one hand, and the provisions of
	
 

 

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the Master Lease, as incorporated herein, and Landlord’s Consent to Sublease on the other hand, the express provisions of this Sublease shall prevail.

 

	
 
	
9.
	
Incorporation By Reference.

 

	
 
	
9.1
	
Except as set forth in Section 9.2, below, the terms and conditions of this Sublease shall include all of the terms of the Master Lease and such terms are incorporated into this Sublease as if fully set forth herein, except that: (i) each reference in such incorporated sections to the “Lease” shall be deemed a reference to this Sublease; (ii) each reference to “Tenant” and “Landlord” shall be deemed a reference to “Subtenant” and “Sublandlord” (in addition to Landlord), respectively, except as otherwise expressly set forth herein, and each reference to “Premises” shall be deemed a reference to the “Subleased Premises”;
	
 

(iii) with respect to work, services, repairs, restoration, insurance, indemnities, representations, warranties or the performance of any other obligation of Landlord under the Master Lease, the sole obligation of Sublandlord shall be to request the same in writing from Landlord as and when reasonably requested to do so by Subtenant, and to use Sublandlord’s commercially reasonable efforts (without requiring Sublandlord to spend more than a nominal sum) to obtain Landlord’s performance (subject, in all events, to Subtenant’s rights under Section 4.3.2); (iv) with respect to any obligation of Subtenant to be performed under this Sublease, wherever the Master Lease grants to Sublandlord a specified number of days to perform its obligations under the Master Lease, except as otherwise provided herein, Subtenant shall have three (3) fewer business days to perform the obligation, including, without limitation, curing any defaults; (v) with respect to any approval required to be obtained from the “Landlord” under the Master Lease, such consent must be obtained from each of Landlord and Sublandlord, and the approval of Sublandlord may be withheld if Landlord’s consent is not obtained; (vi) in any case where Landlord reserves or is granted the right to manage, supervise, control, repair, alter, regulate the use of, enter or use the Subleased Premises or any areas beneath, above or adjacent thereto, perform any actions or cure any failures, such reservation or right shall be deemed to be for the benefit of each of Landlord and Sublandlord; (vii) in any case where “Tenant” is to indemnify, release or waive claims against Landlord, such indemnity, defend, release or waiver shall be deemed to run from Subtenant to each of Landlord and Sublandlord; (viii) in any case where “Tenant" is to execute and deliver certain documents or notices, such obligation shall be deemed to run from Subtenant to each of Landlord and Sublandlord; (ix) all payments shall be made to Sublandlord; (x) Subtenant shall pay all consent and review fees set forth in the Master Lease to each of Landlord and Sublandlord; and (xi) all “profit” under subleases and assignments shall be paid to Sublandlord. Sublandlord agrees not to make any amendment to the Master Lease that materially affects the Subleased Premises without Subtenant’s prior written consent, which Subtenant shall not unreasonably withhold, condition, or delay.

 

	
 
	
9.2
	
Notwithstanding the foregoing, the following provisions of the Master Lease shall not be incorporated herein: The following definitions in Section 1.1: Basic Rent, Term, Landlord’s Contribution; the following definitions in Section 1.2: Brokers, Landlord’s Work, Plans, Tenant’s Work; Sections 2.1.1, 2.1.2, 2.2(d), 2.2(g), 3.1, 4.1, 5.2, 10.2(c), 13.1(c). 14.6(b), 15.14, 16, 17, 18; Exhibits A-2, C, D, E, L; and Amendment 1, Section 4. Subtenant shall update the list on Exhibit H (which shall be attached hereto) to include Subtenant’s removable property.
	
 

 

	
 
	
10.
	
Conditions Precedent. This Sublease and Sublandlord’s and Subtenant’s obligations hereunder are conditioned upon Sublandlord obtaining the written consent of Landlord (“Landlord’s Consent”) to this Sublease in the form attached hereto (which the parties understand shall include Landlord’s review of Subtenant’s full, audited financial statements to its sole satisfaction). If Sublandlord fails to obtain Landlord’s Consent within 60 days after the mutual execution of this Sublease, then Sublandlord or Subtenant may terminate this Sublease by giving the other party written notice thereof prior to the date Sublandlord delivers the Subleased Premises to Subtenant. In such event of termination, Sublandlord shall return to Subtenant its prepayment, if any, of Rent paid by Subtenant to Sublandlord.
	
 

 

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11.
	
Indemnity. Subtenant shall and hereby does indemnify, defend and hold Sublandlord harmless from and against any and all actions, claims, demands, damages, fees, fines, liabilities, expenses (including, without limitation, reasonable attorneys’ fees and disbursements), and the like asserted against, imposed upon or incurred by Sublandlord by reason of (a) any damage or injury to persons or property occurring upon or in connection with the use or occupancy of the Subleased Premises, (b) the use or maintenance of the Subleased Premises or any business therein or any work or thing whatsoever done, or any condition created in or about the Subleased Premises during the Term (or any time prior to the Sublease Commencement Date that Subtenant may have been given access to the Subleased Premises), (c) the use of the Laboratory Systems by Subtenant, (d) the use, storage, and disposal of Hazardous Materials and Medical Waste by Subtenant, (e) any negligent act or omission of Subtenant or any of its agents, contractors, servants, licensees, employees or invitees, (f) Subtenant’s unauthorized holdover;
	
 

(g) any failure of Subtenant to perform or comply with the provisions of this Sublease (including the obligations of the Master Lease assumed by Subtenant with respect to the Subleased Premises pursuant to this Sublease), and (h) any obligation Sublandlord may have to indemnify Landlord under the Master Lease with respect to the Subleased Premises; provided that the foregoing indemnity shall not apply to the extent of any gross negligence or willful misconduct of Sublandlord or anyone under its control.

 

	
 
	
12.
	
Administration of Lease. In addition to such certificates and forms Subtenant is required to complete and execute under the Master Lease, Subtenant shall complete and execute all reasonable forms and documents required by Sublandlord for the administrative purposes related to this Sublease, from time to time, within ten (10) business days of Sublandlord’s request.
	
 

 

	
 
	
13.
	
Furniture. Sublandlord is the owner of certain furniture, fixtures, and equipment located within the Subleased Premises which are identified on Exhibit C, attached hereto (the “FF&E”). Sublandlord hereby leases the FF&E to Subtenant, included in the Base Rent. The FF&E is being leased by Sublandlord in its “AS IS, WHERE IS” condition, without representation or warranty whatsoever other than that Sublandlord is the sole owner thereof. Subtenant is responsible for all maintenance and repairs to the FF&E. Subtenant shall surrender the FF&E at the expiration or earlier termination of this Sublease in the same condition it was leased, reasonable wear and tear excepted.
	
 

 

	
 
	
14.
	
Parking. Subject to the terms of the Master Lease, Subtenant, and its employees, agents and invitees, shall have the non-exclusive right to 43 parking spaces (28 in the Building and 15 elsewhere at the project) at the current applicable charge (if any) per space.
	
 

 

	
 
	
15.
	
Broker. Sublandlord and Subtenant each represent to the other that they have dealt with no real estate brokers, finders, agents or salesmen other than Subtenant’s broker, JLL, and Sublandlord’s broker, CBRE, each to be paid by Sublandlord pursuant to an existing agreement with CBRE to pay each broker in connection with this transaction. Each party shall indemnify and hold the other party harmless from and against all claims for brokerage commissions, finder’s fees, or other compensation, including in excess of the agreed fees, made by either party’s broker or any other agent, broker, salesman or finder as a consequence of Subtenant’s actions or dealings with such agent, broker, salesman, or finder.
	
 

 

	
 
	
16.
	
Notices. The address of each party for all purposes connected with this Sublease shall be that address set forth below its signature at the end of this Sublease. All notices, demands or communications in connection with this Sublease shall be; (a) in writing and personally delivered; or (b) properly addressed and (i) submitted to an overnight courier service, charges prepaid, or (ii) deposited in the mail (certified, return receipt requested, and postage prepaid). Notices shall be deemed delivered upon receipt, if personally delivered, one (1) business day after being submitted to an overnight courier service and three (3) business days after mailing, if mailed as
	
 

 

Page 7
 

 

 

set forth above. All notices given to Landlord under the Master Lease shall be considered received only when delivered in accordance with the Master Lease.

 

	
 
	
17.
	
Sublease and Assignment. Subtenant understands that it must obtain the prior written consent or approval of Landlord and Sublandlord to any assignment of this Sublease or sublease of all or part of the Subleased Premises. In the event of a proposed assignment of this Sublease, Sublandlord agrees to abide by the Landlord’s consent requirements in the Master Lease. In the event of any proposed sub-subletting, Subtenant shall request, in writing, such consent and that Sublandlord promptly provide notice of such subletting to Landlord and take all commercially reasonable actions to assist Subtenant with such request including, but not limited to, reasonably cooperating with Subtenant and its proposed subtenant to quickly obtain the Landlord’s written consent thereto, in each case at Subtenant’s sole cost (including those costs in Section 6.6 of the Master Lease) and no cost to Sublandlord. Subtenant understands that Landlord may or may not so consent, and Sublandlord and Landlord are under no obligation to consent. However, if Landlord provides its written consent/approval to said proposed sub-sublease, then said consent shall also be deemed to be Sublandlord’s unconditional consent thereof as well, provided that the sub-sublease shall be subject and subordinate to this Sublease. Sublandlord may assign this Sublease in connection with an assignment of the Master Lease by Sublandlord pursuant to an assignment approved in accordance with the Master Lease; provided, however, Sublandlord shall provide Subtenant with a copy of the assignment agreement, together with revised contact information, if applicable (name and address for the appropriate contact person).
	
 

 

	
 
	
18.
	
Surrender. In addition to the obligations of the Master Lease, Subtenant shall, upon the termination or expiration of this Sublease: (a) surrender the Subleased Premises in broom clean condition, free of debris, and otherwise in substantially the same condition and configuration as received by Subtenant as of the Sublease Commencement Date or the date of Early Access, whichever occurs first, reasonable wear and tear excepted; and (b) remove all Subtenant-owned furniture and any of its personal property from the Subleased Premises, and repair any and all damage caused by such removal; and (c) engage a certified industrial hygienist at its sole cost and expense to decontaminate and decommission the Subleased Premises, which decommissioning plan must be approved in writing and in advance by Sublandlord (which approval shall not be unreasonably withheld). Notwithstanding any provision herein to the contrary, Sublandlord shall have the right to enter the Subleased Premises in the final two (2) weeks of the Term to perform any restoration required under the Master Lease that Subtenant is not expressly required to perform under this Sublease. Sublandlord shall use commercially reasonable efforts not to unreasonably interfere with Subtenant’s use of, and operations in, the Subleased Premises in performing such work.
	
 

 

	
 
	
19.
	
Notice of Accidents. Subtenant shall give Sublandlord notice of any fire, casualty or accident in or about the Subleased Premises promptly after Subtenant becomes aware of such event.
	
 

 

	
 
	
20.
	
Quiet Enjoyment. So long as Subtenant is not in default (beyond any applicable notice and cure period) under this Sublease, and subject to Sublandlord’s right to enter specifically granted herein or Landlord’s right to enter granted in the Master Lease, Subtenant’s quiet enjoyment of the Subleased Premises shall not be disturbed or interfered with by Sublandlord, its employees or agents.
	
 

 

	
 
	
21.
	
Right of First Offer to Sublease. During the Term only, and subject to (i) Subtenant performing its obligations under the Sublease in all material respects and (ii) Subtenant’s financial condition continuing to be in at least the same condition as the Sublease Commencement Date, Subtenant shall have a right of first offer ("Right of First Offer ") to sublease the remaining portion of the Premises the “Remaining Premises”) through the Expiration Date. Upon the occurrence of any uncured Event of Default under the Sublease (beyond any applicable notice and cure period), this Right of First Offer is null and void. Subtenant acknowledges that any future sublease is conditioned upon Sublandlord obtaining the written consent of Landlord and Subtenant understands that Landlord may or may not so consent. Subtenant shall be entitled to exercise this Right of First Offer to Sublease only if at the time of the receiving of such notice and at the time of
	
 

 

Page 8
 

 

 

the commencement of the applicable term no Event of Default under this Sublease by Subtenant shall then exist and only if Landlord consents to such sublease. If Sublandlord decides to sublease the Remaining Premises, Sublandlord shall give Subtenant written notice of its intent to lease the Remaining Premises (the “ROFO Notice”), along with the terms and conditions upon which Sublandlord intends to sublease. Subtenant shall thereafter have a period of thirty (30) days to elect by unequivocal written notice to Sublandlord to lease the Remaining Premises on the same terms and conditions as Sublandlord intends to otherwise offer to a third party and set forth in the ROFO Notice; provided, however, that prior to Subtenant’s acceptance Sublandlord shall retain the right to elect not to lease the Remaining Premises by giving Subtenant written notice thereof. If Subtenant elects not to lease the Remaining Premises, then Sublandlord shall be free to lease the remaining portion of the Premises to a third party . Should Subtenant exercise this Right of First Offer for the entire Premises, Subtenant shall first attempt to negotiate a lease for the Premises directly with Landlord.

 

 

[signature page follows]

 

Page 9
 

 

 

IN WITNESS WHEREOF, the parties have executed this Sublease as of the Effective Date.

SUBLANDLORD:SUBTENANT:

 

ROCHE DIAGNOSTICS OPERATIONS, INC.COMPASS THERAPEUTICS, INC.

 

a Delaware corporationa Delaware corporation

By: /s/ Ann FonfaraBy: /s/ Vered Bisker-Leib Name: Ann FonfaraName: Vered Bisker-Leib

Title: Vice President, FinanceTitle: President & COO

 

Address:Address:

9115 Hague Rd245 First Street, 3rd Floor

Indianapolis, IN 46256Cambridge, MA 02142

USAUSA

Page 10

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