Document:

Exhibit 10.7.1

 

FIRST AMENDMENT TO LEASE

 

                FIRST AMENDMENT TO LEASE dated
as of this 7th day of September, 2007 by and between MORTIMER B. ZUCKERMAN AND
EDWARD H. LINDE, Trustees of 91 Hartwell Avenue Trust under Declaration of
Trust dated September 28, 1981 filed with the Middlesex South Registry as
Document No. 616455 as amended by instruments dated December 10, 1984
and April 17, 1991 respectively filed with said Registry District as
Document Nos. 675674 and 844541 but not individually (“Landlord”) and SYNTA
PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

                A.            Landlord and Tenant are parties to that certain Lease
Agreement dated as of January 13, 2005 (the “Lease”), in connection with
certain premises located at 91 Hartwell Avenue, Lexington, Massachusetts (the “Building”),
consisting of 13,764 square feet of rentable floor area on the second (2nd)
floor and 8,068 square feet of rentable floor area on the third (3rd)
floor collectively (the “Rentable Floor Area of the Premises” in the Building
(referred to in the Lease as the “Premises” or “Tenant’s Space”).

 

                B.            Landlord and Tenant now desire to extend the Term of the
Lease for one (1) period of eighteen (18) months upon all of the same
terms and conditions set forth in the Lease except for those terms and
conditions amended herein (the “First Amendment”).

 

                C.            Capitalized terms used herein and not otherwise defined
herein shall have the meaning set forth in the Lease.

 

AGREEMENT

 

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

 

                1.             The current Term of the Lease is scheduled to expire on February 29,
2008.  Landlord and Tenant agree that the
Lease is hereby extended for one (1) period of eighteen (18) months
commencing on March 1, 2008 and expiring on August 31, 2009 (“First
Extended Term”) unless sooner terminated or extended in accordance with the
provisions of the Lease and this First Amendment.

 

                2.             Landlord and Tenant acknowledge and agree that the
extension option contained in both the Reference Data Sheet and Section 2.4.1
of the Lease shall be deleted in its entirety, and Tenant shall have no further
option to extend the Lease Term upon the expiration of the First Extended Term,
except as provided in Section 4 below.

 

 

 

1

 

 

                3.             (A)          For
the period prior to the First Extended Term, Annual Fixed Rent for the Premises
shall continue to be payable as set forth in the Lease.

 

                                (B)           During the First Extended Term,
Annual Fixed Rent shall be paid by Tenant at the annual rate of $502,136.00
(being the product of (i) $23.00 and (ii) the Rentable Floor Area of
the Premises (being 21,832 square feet)).

 

                4.             (A)          For
the purposes of computing Tenant’s payments for Landlord’s Operating Expenses,
pursuant to Section 2.6 of the Lease, for the portion of the Lease Term on
and after March 1, 2008, the definition of “Base Operating Expenses”
contained in Section 2.6 of the Lease shall be deleted in its entirety and
replaced with the following:

 

	
   

  	
  BASE
  OPERATING

  EXPENSES: 

  	
   

  	
  Landlord’s
  Operating Expenses (as hereinafter defined in

  Section 2.6) for calendar year 2008, being January 1, 2008

  through December 31,2008. 

  

 

                For the portion of the Lease
Term prior to March 1, 2008, such definition shall remain

unchanged.

 

                                (B)           For the purposes of computing Tenant’s
payments for Landlord’s Tax Expenses, pursuant to Section 2.7 of the
Lease, for the portion of the Lease Term on and after March 1, 2008 the
definition of “Base Taxes” contained in Section 2.7 of the Lease shall be
deleted in its entirety and replaced with the following:

 

	
   

  	
  BASE
  TAXES: 

  	
   

  	
  Landlord’s
  Tax Expenses (as hereinafter defined in Section

  2.7) for fiscal tax year 2008, being July 1, 2007 through June

  30, 2008.

  

 

                For the portion of
the Lease Term prior to March 1, 2008, such definition shall remain
unchanged for such purposes.

 

                5.             (A)          Tenant
shall have the right to extend the Lease Term upon all the same terms,
conditions, covenants and agreements contained in the Lease and this First
Amendment for one (1) period of fourteen (14) months commencing on September 1,
2009 and expiring on November 30, 2011, (“Second Extended Term”) on the
conditions, which conditions Landlord may waive by written notice to Tenant,
that at the time of exercise of the Second Extended Term (i) there exists
no Event of Default, (ii) the Lease is still in full force and effect, and
(iii) Tenant has neither assigned the Lease nor sublet any portion of the
Premises. Notwithstanding anything contained herein to the contrary, Landlord
has no obligation to make any additional payment to Tenant with respect to any
construction allowance or the like or to perform any work to the Premises as a
result of Tenant exercising its Second Extended Term option.

 

                                (B)           If Tenant desires to exercise its
right to the Second Extended Term, then Tenant shall give written notice to
Landlord, not earlier than November 30, 2008 nor later than 

 

 

2

 

 

February 28,
2009.  Upon the giving of such written
notice, the Lease shall be extended for the Second Extended Term without the
necessity for the execution of any additional documents; and in such event all
references herein to the Lease, the Term of the Lease shall be construed as
referring to the Lease Term, as so extended, unless the context clearly
otherwise requires.

 

                                (C)           For
the Second Extended Term, Annual Fixed Rent shall be paid by Tenant at the
annual rate of $529,426.00 (being the product of (i) $24.25 and (ii) the
Rentable Floor Area of the Premises (being 21,832 square feet)) and Base
Operating Expenses and Base Taxes shall be calculated in accordance with Section 4
(B) contained herein.

 

                6.             (A)          Tenant
warrants and represents that Tenant has not dealt with any broker in connection
with the consummation of this First Amendment except for Richard Barry Joyce &
Partners (the “Broker”); and in the event any claim is made against Landlord
relative to dealings by Tenant with brokers other than the Broker, Tenant shall
defend the claim against Landlord with counsel of Tenant’s selection first
approved by Landlord (which approval will not be unreasonably withheld) and
save harmless and indemnify Landlord on account of loss, cost or damage which
may arise by reason of such claim.

 

 

                                (B)           Landlord warrants and represents that
Landlord has not dealt with any broker in connection with the consummation of
this First Amendment except for the Broker; and in the event any claim is made
against Tenant relative to dealings by Landlord with brokers other than the
Broker, Landlord shall defend the claim against Tenant with counsel of Landlord’s
selection and save harmless and indemnify Tenant on account of loss, cost or
damage which may arise by reason of such claim.

 

                7.             As an inducement to Landlord to enter into this First
Amendment, Tenant hereby represents and warrants that: (i) Tenant is not,
nor is it owned or controlled directly or indirectly by, any person, group,
entity or nation named on any list issued by the Office of Foreign Assets
Control of the United States Department of the Treasury (“OFAC”) pursuant to
Executive Order 13224 or any similar list or any law, order, rule or
regulation or any Executive Order of the President of the United States as a
terrorist, “Specially Designated National and Blocked Person” or other banned
or blocked person (any such person, group, entity or nation being hereinafter
referred to as a “Prohibited Person”); (ii) Tenant is not (nor is it
owned, controlled, directly or indirectly, by any person, group, entity or
nation which is) acting directly or indirectly for or on behalf of any
Prohibited Person; and (iii) from and after the effective date of the
above-referenced Executive Order, Tenant (and any person, group, or entity
which Tenant controls, directly or indirectly) has not conducted nor will
conduct business nor has engaged nor will engage in any transaction or dealing
with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or
regulation, including without limitation any assignment of the Lease or any
subletting of all or any portion of the Premises or the making or receiving of
any contribution of funds, goods or services to or for the benefit of a
Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or
regulation. In connection with the foregoing, it is expressly understood and
agreed that (x) any breach by Tenant of the foregoing representations and
warranties shall be deemed an immediate Event of Default by Tenant under Section 7.1
of the Lease (without the benefit of notice or grace) and shall be covered by
the indemnity provisions of 

 

 

3

 

 

Section 5.7
of the Lease, and (y) the representations and warranties contained in this
subsection shall be continuing in nature and shall survive the expiration or
earlier termination of the Lease.

 

                8.             Except as herein amended the Lease shall remain unchanged
and in full force and effect.  All
references to the “Lease” shall be deemed to be references to the Lease as
herein amended.

 

 

 

 

 

 

 

 

4

 

 

                EXECUTED as a sealed instrument
as of the date and year first above written.

 

	
  WITNESS:

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  91 HARTWELL AVENUE
  TRUST

  
	
   

  
	
   

  	
  By:

  	
  Boston Properties
  Limited Partnership,

  
	
   

  	
   

  	
  its sole beneficiary

  
	
   

  
	
   

  	
  By:

  	
  Boston
  Properties, Inc.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  
	
  /s/ ILLEGIBLE

  	
   

  	
  By:

  	
  /s/ DAVID C. PROVOST

  
	
   

  	
  Name:

  	
  David C. Provost

  
	
   

  	
  Title:

  	
  Senior Vice President
  Boston Properties

  
						

 

	
  WITNESS:

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  SYNTA PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KEITH EHRLICH

  	
   

  
	
   

  	
  Name:

  	
  Keith Ehrlich

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
  (Hereto duly
  authorized)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KEITH EHRLICH

  	
   

  
	
   

  	
  Name:

  	
  Keith Ehrlich

  
	
   

  	
  Title:

  	
  Treasurer 

  

 

 

5Exhibit 10.9.1

 

 

GE Commercial Finance

Healthcare Financial Services

Life Science Finance

83 Wooster Heights Road, 5th
Floor

Danbury, CT  06810

203-205-5216 / FAX: 203-205-2183

 

 

 

June 28, 2007

 

 

CONFIDENTIAL CAPITAL (QUASI) LEASE PROPOSAL FOR:

 

	
  Synta Pharmaceuticals Corp.

  

 

 

 

Submitted By:  William B. Stickle

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
  Synta
  Pharmaceuticals Corp.

  

 

Mr. Keith Ehrlich

Chief Financial Officer

Synta Pharmaceuticals Corp.

45 Hartwell Avenue

Lexington, MA  02421

 

Dear Mr. Ehrlich:

 

                General
Electric Capital Corporation (“GE Capital”) has reviewed the information
provided by you in connection with the requested financing for Synta
Pharmaceuticals Corp (referred to as “Synta Pharmaceuticals” or the “Company”).
 Based on the review to date and subject
to the timely receipt of a signed copy of this proposal letter as indicated
below, GE Capital is pleased to consider arranging and providing a lease
financing up to a maximum aggregate exposure to GE Capital of $6,000,000 (the “Financing”)
as outlined in the attached Term Sheet incorporated herein by reference, subject
to the general terms and conditions in this proposal letter and the Term Sheet.

 

                GE
Capital is one of the largest and most diversified financial services companies
in the world with assets exceeding $300 billion and operations in over 45
countries.  We have been actively
providing equipment financing for Life Science companies for over a decade and
it is our privilege to be a financial partner to hundreds of Life Science
companies.

 

                This
proposal letter, including the attached Term Sheet (together, the “Proposal”),
is being provided to the Company on a confidential basis and is merely an indication
of interest regarding the Financing transaction on the general terms and
conditions outlined below and should not be construed as a commitment.  GE Capital may change the terms of this
Proposal or cease future consideration of the Financing at any time in its sole
discretion.  The attached Term Sheet
summarizes only the principal terms and conditions under which the proposed
Financing will be considered and does not purport to set forth all of the terms
and conditions applicable to such Financing, which terms and conditions will be
fully contained in the final documentation.

 

                The
Company may not use this Proposal to solicit other offers or to modify,
renegotiate or otherwise improve the terms and conditions of any other offer
heretofore or hereafter received by the Company but is not restricted from
making any disclosure or dissemination of the United States federal income tax structure
or aspects of the transactions contemplated by this proposal or any documents
executed pursuant to this Proposal.  Further,
each of GE Capital and the Company acknowledges that it has no proprietary
rights to any United States federal income tax elements or structure of this
Proposal.  In addition, the Company shall
not, except as required by law, use the name of, or refer to GE Capital, in any
correspondence, discussions, advertisement, press release or disclosure made in
connection with the Financing without the prior written consent of GE Capital.

 

                By
signing below, the Company acknowledges the terms and conditions of this
Proposal and agrees to pay to GE Capital a Good Faith Deposit of $20,000
(“Deposit”).  Upon receipt of the executed
Proposal and accompanying Deposit, GE Capital shall commence the investment and
credit approval process.  Upon acceptance
by GE Capital the Good Faith Deposit will be

 

 

2

 

	
  Synta
  Pharmaceuticals Corp.

  

 

applied as follows: (i) $10,000 earned
by GE Capital as a non-recurring upfront fee, and (ii) the remainder to the
initial payment(s) with any unutilized Deposit remaining at the end of the
Anticipated Funding Period to be retained by GE Capital as a non-utilization
fee.  In the event the funded transaction
materially differs from the terms of this Proposal, the documentation charge may
be adjusted to correspond with GE Capital’s actual out-of-pocket expenses.  The Deposit is not refundable except in the
event that the transaction represented by this Proposal and any amendment to it
is not approved by GE Capital.  In such
case, GE Capital shall promptly return the Deposit (less the cost of credit
verification and investigation and any out of pocket expenses incurred such as appraisal
fees, legal fees, etc.).  Before funding
can take place, all proper documentation of title and UCC releases from other
lenders shall be in place and approved by GE Capital.  We thank you for your consideration and look
forward to working with you toward completing this transaction.

 

                By
signing this Proposal Letter, regardless of whether the Financing is approved
or closes, the Company agrees to pay upon demand to GE Capital all fees and
expenses (including but not limited to all costs and fees of external legal
counsel, environmental consultants, appraisers, inspectors, auditors and other
consultants and advisors selected by GEHFS, due diligence reports, UCC, tax and
judgment lien search and filing costs, escrow costs (if applicable), recording
and transfer fees and taxes, title charges and survey costs and the allocated cost
of internal legal counsel) incurred in connection with this Proposal Letter and
the Financing (and the negotiation, documentation and closing thereof).

 

                I
would appreciate the opportunity to discuss this proposal with you at your
earliest convenience.  Please do not hesitate
to contact me at 203-205-5216 if you have any questions or if I may be of
further assistance.

 

	
  Sincerely,

  	 

	
   

  	 

	
   

  	 

	
   /s/ William B. Stickle 

  
	
  William B. Stickle

  
			

 

 

 

PROPOSAL ACCEPTED BY:

 

Synta Pharmaceuticals Corp.

 

	
  Name:

  	
   /s/ Keith Ehrlich

  
	
  Title:

  	
   CFO

  
	
  Date:

  	
   6/29/07

  
	
  Federal Tax ID#:

  	
   04-3508648

  
	
  Email Address:

  	
   kehrlich@syntapharma.com

  
					

 

3

 

	
  Synta
  Pharmaceuticals Corp.

  

 

	
  Contact Name for
  Inspection:

  	
   Jerry Di Cecca

  	
   

  
	
  Phone #:

  	
  781-541-7268

  	
   

  
				

 

4

 

	
  Synta
  Pharmaceuticals Corp.

  

 

	
   

  	
  Term Sheet

  
	
   

  	
   

  
	
  Transaction:

  	
  Capital Lease (Quasi)

  
	
   

  	
   

  
	
  Lessee:

  	
  Synta Pharmaceuticals
  Corp.

  
	
   

  	
   

  
	
  Lessor:

  	
  General Electric Capital
  Corporation its affiliates or its assignee (“GE Capital”)

  
	
   

  	
   

  
	
  Lease Line Amount:

  	
  Up to an aggregate
  exposure to GE Capital of $6,000,000.

  
	
   

  	
   

  
	
  Lease Term and Payment:

  	
  Laboratory/Manufacturing equipment: 48 payments
  per month in advance at 2.566600% per thousand dollars cost of Equipment (the
  “Payment Factor”), plus applicable taxes for each lease schedule.

  
	
   

  	
   

  
	
   

  	
  All other equipment: 36 payments
  per month in advance at 3.248560% per thousand dollars cost of Equipment (the
  “Payment Factor”), plus applicable taxes for each lease schedule.

  
	
   

  	
   

  
	
  Anticipated Funding Period:

  	
  June 2007 through June
  2008.

  
	
   

  	
   

  
	
  Line Mechanics:

  	
  Equipment with invoice
  dates older than 90 days will be subject to appropriate discount.

  
	
   

  	
   

  
	
   

  	
  Amortization begins on the
  start date, which is the first day of the month following the funding date.
  Interim rent will be charged for any period between the funding date and the
  start date.

  
	
   

  	
   

  
	
  Collateral:

  	
  A fully perfected first
  priority security interest in various Equipment, as detailed in the attached
  Addendum A.  All Equipment must be
  acceptable to GE Capital and located at Company owned or leased facilities
  within the continental United Sates. All collateral shall be free and clear
  of all liens, claims and encumbrances.

  
	
   

  	
   

  
	
  End of Lease Purchase Option:

  	
  At the end of the
  scheduled term, the Lessee may purchase the leased equipment for $1.00.

  
	
   

  	
   

  
	
  Other Conditions:

  	
  All other terms and
  conditions that presently exist shall continue to apply.

  

 

 

5

 

	
  Synta
  Pharmaceuticals Corp.

  

 

GENERAL
TERMS AND CONDITIONS

 

Our proposal contains the
following provisions and the Lease Payment Factor we propose are specifically
based upon these provisions and our assumptions.

 

1.  Purchase of Equipment:
Lessee would submit its order for the equipment to the vendor.  Lessor would take an assignment of Lessee’s
purchase order.  Such assignment would be
conditioned upon the leasing of the Equipment by Lessee from Lessor.  Lessee understands that any Equipment
delivered after the Last Delivery Date would not be covered by this proposal.

 

2.  Net Lease:
The proposed lease would be a net lease. 
Without limiting the generality of the foregoing, Lessee would be
responsible for all expenses, maintenance, insurance and taxes relating to the
purchase, lease, possession and use of the Equipment.

 

3.  Maintenance and Insurance:
Lessee would bear all risk of loss or damage to the Equipment.  Lessee would be responsible to keep the Equipment
insured with companies acceptable to Lessor and for such amounts required by
Lessor, including, but not limited to, insurance for damage to or loss of the
Equipment and liability coverage.  All
such insurance policies must be satisfactory to Lessor.

 

4.  Warranties:
Lessor would lease the Equipment to Lessee on an AS IS BASIS.  However, Lessor would assign to Lessee all
warranties, guarantees and services provided by the manufacturer or vendor (to
the extent that they are assignable).

 

5.  Documentation and
Transactional Costs: Standard GE CAPITAL Master Lease and Lease
Schedule for this type of equipment (“Lease Documents”).  Any changes to the Lease Documents must be
approved by GE CAPITAL legal counsel. 
Lessee will be responsible for all costs associated with the transaction
including any appraisal costs, legal fees and inspection expenses.

 

6.  Indexing:
The Payment Factor and corresponding Lease payments are based on the Federal
Reserve’s 3 and 4 year Treasury Constant Maturities Rate (H.15/ “Treasury
Rate”) as of 06/26/2007 currently 4.95 and 4.97 respectively, and will be
adjusted effective as of the date of funding of any Financing to reflect any
increases in the Treasury Rate.

 

7.  Electronic Payment System:
GE Capital’s standard payment collection method is through an electronic
payment system.  An enrollment form will
be provided with the Lease Documents.

 

8.  Confidentiality:
This proposal letter is being provided to the Company on a confidential
basis.  Except as required by law,
neither this proposal nor its contents may be disclosed, except to individuals
who are the Company’s officers, employees or advisors who have a need to know
of such matters and then only on the condition that such matters remain
confidential.  In addition, none of such
persons shall, except as required by law, use the

 

6

 

	
  Synta
  Pharmaceuticals Corp.

  

 

name of, or refer to GE Capital, in any
correspondence, discussions, advertisement, press release or disclosure made in
connection with the Financing without the prior written consent of GE Capital.

 

9.  Expiration:
This proposal will expire 06/30/2007, if not accepted prior to that date.

 

10.   Other
Conditions: GE Capital’s agreement to fund the proposed
transaction remains subject to and would be preceded by completion of a legal
and business due diligence, as well as collateral and credit review and
analysis, all with results satisfactory to GE Capital and the closing of an
initial funding under such transaction would be conditioned upon the prior
execution and delivery of final Lease Documents and satisfaction of all
conditions precedent acceptable to GE Capital and its counsel and no material
adverse change in the business condition or prospects of the Company (“Material
Adverse Change”).  For transactions that
contemplate more than one funding, GE Capital’s obligation to make each such
subsequent funding would be subject to confirmation that no default has
occurred and is continuing under the Lease Documents, that all representations
and warranties of the Company in the Lease Documents continue to be true and
correct and that no Material Adverse Change has occurred since the prior
funding.  If a commitment were to be
given it would be subject to and preceded by a completion of a legal and
business due diligence, as well as collateral and credit review and analysis,
all with results satisfactory to GE Capital and the closing of any Financing
would be conditioned upon the prior execution and delivery of final legal documentation
and all conditions precedent acceptable to GE Capital and its counsel and
confirmation that no Material Adverse Change has occurred since the issuance of
such commitment.

 

 

7

 

	
  Synta
  Pharmaceuticals Corp.

  

 

Addendum
A — Expected Equipment Composition

 

	
  Equipment Class

  	
   

  	
  Concentration Requirement

  
	
   

  	
   

  	
   

  
	
  Laboratory &
  scientific equipment:

  	
   

  	
  Minimum of 72.5%

  
	
   

  	
   

  	
   

  
	
  Lab and office furniture, office equipment,

  computers, networking equipment, &

  similar:

  	
   

  	
  Maximum of 20.0%

  
	
   

  	
   

  	
   

  
	
  Soft costs (leaseholds, software,

  tax, freight & similar):

  	
   

  	
  Maximum of 7.5%

  
	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  100%

  

 

 

8

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