Document:

DC7265.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
SECOND AMENDMENT

     THIS SECOND AMENDMENT (the “Second Amendment”) is
made and entered into as of July 6, 2009 by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company (“Landlord”) and COMBINATORX, INCORPORATED, a Delaware corporation (“Tenant”).

	
RECITALS

	
A.      		
Landlord and Tenant are parties to that certain lease dated October 18, 2005, which lease has been previously amended by instruments dated March 9, 2006 (the “First
Amendment”) and June 5, 2006 (the “Commencement Letter”) (collectively, the “Lease”). Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 63,329 rentable square feet (the “Original Premises”) comprised of (i) 18,035 rentable square feet of office space known as Suite No. 1600 on the
16th floor (the “Office Space”) of the office tower building located at 245
First Street, Cambridge, Massachusetts, commonly known as 245 First Street (the “Office Building”), (ii) 22,095 rentable square feet of lab space known as
Suite No. 400 on the 4th floor (the “4th Floor Lab Space”) of the mid-rise building located at 245 First Street, Cambridge, Massachusetts, commonly known as Cambridge Science Center (the “Science Building”), and (iii) 23,199 rentable square feet of lab space known as Suite No. 300 on the 3rd floor (the “3rd Floor Lab Space”) of the Science
Building, all as more particularly described in the Lease. The Property contains the Office Building and the Science Building, which are sometimes jointly or severally referred to herein as the “Building”.	
	 
	
B.      		
Tenant desires to surrender a portion of the Original Premises to Landlord containing approximately 40,130 comprised of (i) 18,035
rentable square feet of office space known as Suite No.1600 on the 16th floor of the Office Building as shown on Exhibit A to the Lease (“Reduction Space 1”) and (ii) 22,095 rentable square feet of lab space known as Suite No. 400 on the 4th floor of Science Building as shown on Exhibit A to the Lease (“Reduction Space 2”) and that the Lease be appropriately amended, and
Landlord is willing to accept such surrender on the following terms and conditions.	
	 

     NOW, THEREFORE, in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions
contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:

	
1.      		
Reduction Space 1.	
	 
	 	
1.01.      		
Reduction Space 1 Effective Date.	
	 
	 	 	
A.      		
Landlord and Tenant acknowledge that Tenant has vacated Reduction Space 1 in accordance with the terms of the Lease on or prior to June 15, 2009, which is the date immediately preceding the Reduction Space 1 Effective
Date (defined in Section 1.01.B. below) and Tenant shall fully comply with all obligations under the Lease respecting Reduction Space 1 up to the Reduction Space 1 Effective Date, including those provisions relating to the condition of Reduction
Space 1 and removal of Tenant’s	
	 

	 	
Property therefrom (other than the Suite 1600 Personal Property, as herein defined) and except as otherwise expressly provided in this Second Amendment. Notwithstanding the foregoing, Landlord agrees that Tenant shall
have no obligation to remove any of the Initial Office Alterations, Required Removables, Cable or any other alterations, additions, improvements, wires or cabling in Reduction Space 1. As consideration for Landlord’s agreement to reduce the
size of the Original Premises, Tenant shall execute and deliver to Landlord a Bill of Sale in the form attached hereto as Exhibit A (“Suite 1600 Bill of Sale”) to transfer, sell and convey to Landlord the personal property owned by Tenant and described in the Suite 1600 Bill of Sale (the “Suite 1600 Personal Property”), and, following delivery of the Suite 1600 Bill of Sale to Landlord and satisfaction and/or waiver of the contingency set forth in Section 1.01D below,
Tenant agrees that Landlord may retain or dispose of the Suite 1600 Personal Property in whatever manner Landlord deems appropriate. Tenant hereby represents and warrants to Landlord that Tenant is the absolute owner of the Suite 1600 Personal
Property, the Suite 1600 Personal Property is free and clear of all liens, charges and encumbrances, and Tenant has full right, power and authority to sell and otherwise transfer the Suite 1600 Personal Property described in the Suite 1600 Bill of
Sale. Tenant hereby agrees to indemnify and hold Landlord and Landlord Related Parties harmless from and against any costs, claims, damages or liability (including, without limitation, reasonable attorneys fees) arising as a result of a breach of
the foregoing representations in this Section 1.01.A. Notwithstanding the foregoing, Landlord acknowledges and agrees that Tenant has satisfied the conditions of the Lease regarding the surrender and vacation of Reduction Space 1.	
	 
	 	
B.      		
Effective as of June 16, 2009 (the “Reduction Space 1 Effective Date”), the Premises is decreased by 18,035 rentable square
feet on the 16th floor of the Office Building by the elimination of Reduction Space 1. As of the Reduction Space 1 Effective Date, Reduction Space 1 shall be deemed
surrendered by Tenant to Landlord, the Lease shall be deemed terminated with respect to Reduction Space 1, and the “Premises”, as defined in the Lease,
shall be deemed to mean the Original Premises, less Reduction Space 1; provided, if Tenant shall violate any provision hereof or if Tenant’s representations herein shall be false or materially misleading, Landlord shall have the right to
declare this Second Amendment null and void and to reinstate the Lease with respect to Reduction Space 1 in addition to, and not in lieu of, any other rights or remedies available to Landlord.	
	 
	 	
C.      		
If Tenant shall holdover in Reduction Space 1 beyond the day immediately preceding the Reduction Space 1 Effective Date, the terms of Section 22 of the Lease shall apply to Reduction Space 1.	
	 
	
1.02.      		
Base Rent/Office Base Rent. Effective as of the Reduction Space 1 Effective Date, the schedule of Base Rent payable with respect to the Office Space is as provided
below:	
	 

2

	
Period 
		
 		
Annual Rate Per 
		
 		
Monthly Base Rent for 
	
	
 
		
 		
Square Foot 
		
 		
Office Space 
	
	

		
		

		
		

	
	
Reduction Space 1 
		
 		
$30.00 
		
 		
$45,087.50 
	
	
Effective Date – 9/30/09 
		
 		
 
		
 		
 
	
	

		
		

		
		

	

	 	
and Tenant shall continue to pay Base Rent for 3rd Floor Lab Space and the 4th Floor Lab Space as provided in the Original Lease subject to Section 2 below.	
	 
	 	
1.03.      		
Additional Consideration. As additional consideration for the reduction of the Premises by Reduction Space 1, Tenant agrees to pay Landlord $500,000.00 (the “Reduction Space 1 Reduction Fee”) on or before October 1,
2009.	
	 
	 	 	
Failure to pay the Reduction Space 1 Reduction Fee as herein provided shall be deemed a default under the Lease.	
	 
	 	
1.04.      		
Tenant’s Pro Rata Share. Commencing on October 1, 2009, Tenant’s Pro Rata Share for the Office Building is decreased from 12.1405% to 0% and Tenant’s Pro Rata Share for the Buildings is decreased by 6.4627% from 22.6934% to 16.2307%. Notwithstanding anything in this Second Amendment to the contrary, Tenant shall
remain liable for all year-end adjustments with respect to Tenant’s Pro Rata Share of Office Expenses and Office Taxes applicable to Reduction Space 1 for that portion of the calendar year or fiscal year, as applicable, preceding October 1,
2009. Such adjustments shall be paid at the time, in the manner and otherwise in accordance with the terms of the Lease, unless otherwise specified in this Second Amendment.	
	 
	 	
1.05.      		
Parking. Effective as of Reduction Space 1 Effective Date, Section 2 (Parking) of Exhibit E of the Lease shall be amended to reflect that 22 unreserved parking spaces leased
to Tenant will be deemed returned to Landlord effective as of Reduction Space 1 Effective Date, and shall no longer be available to Tenant.	
	 
	 	 	
The use of the remaining Spaces shall be subject to the terms of Section 2 of Exhibit E of the Lease.	
	 
	 	
1.06.      		
Demise. Notwithstanding any contrary provision in this Second Amendment, prior to the Reduction Space 1 Effective Date, Tenant shall make such alterations and improvements
as are necessary to separately demise the systems (and related meters, if any) currently serving the Reduction Space 1 in common with other portions of the Premises, from the remaining portions of the Premises, such that they will serve only the
Premises as it is then constituted under the Lease after the termination of Reduction Space 1 in compliance with the Lease.	
	 
	
2.      		
Reduction Space 2.	
	 
	 	
2.01.      		
Reduction Space 2 Effective Date.	
	 
	 	 	
A.      		
Tenant shall vacate Reduction Space 2 in accordance with the terms of the Lease on or prior to the date that is the later of (i) the date that is 60 days after the date that the contingency under Section 2.02.D has
been satisfied and/or waived and (ii) August 31, 2009, which date shall be the date immediately preceding the “Reduction Space 2 Effective Date”
and	
	 

3

	 	
Tenant shall fully comply with all obligations under the Lease respecting Reduction Space 2 up to the Reduction Space 2 Effective Date, including those provisions relating to the condition of Reduction Space 2 and
removal of Tenant’s Property therefrom (other than the Suite 400 Personal Property, as herein defined) and except as otherwise provided in this Second Amendment. Notwithstanding the foregoing but except as required by Section 2.06 below,
Landlord agrees that Tenant shall have no obligation to remove any of the Initial Lab Alterations, Required Removables, Cable or any other alterations, additions, improvements, wires or cabling in Reduction Space 2. As consideration for
Landlord’s agreement to reduce the size of the Original Premises, Tenant shall execute and deliver to Landlord a Bill of Sale in the form attached hereto as Exhibit B (“Suite 400 Bill of Sale”) to transfer, sell and convey to Landlord the personal property owned by Tenant and described in the Suite 400
Bill of Sale (the “Suite 400 Personal Property”), and, following delivery of the Suite 400 Bill of Sale to Landlord and satisfaction and/or waiver of the
contingency set forth in Section 2.01(D) below, Tenant agrees that Landlord may retain or dispose of the Suite 400 Personal Property in whatever manner Landlord deems appropriate. Tenant hereby represents and warrants to Landlord that Tenant is the
absolute owner of the Suite 400 Personal Property, the Suite 400 Personal Property is free and clear of all liens, charges and encumbrances, and Tenant has full right, power and authority to sell and otherwise transfer the Suite 400 Personal
Property described in the Suite 400 Bill of Sale. Tenant hereby agrees to indemnify and hold Landlord and Landlord Related Parties harmless from and against any costs, claims, damages or liability (including, without limitation, reasonable attorneys
fees) arising as a result of a breach of the foregoing representations in this Section 2.01.A. Tenant shall, prior to the Reduction Space 2 Effective Date, cause to be performed by a qualified environmental consultant approved by Landlord an
inspection of Reduction Space 2 (including visual inspection, geiger counter evaluation, airborne and surface monitoring) to confirm that Reduction Space 2 is free of biological, chemical and radioactive hazards. Tenant shall deliver a copy of the
inspection report (“Inspection Report”) to Landlord. If the Inspection Report is not reasonably satisfactory to Landlord, Landlord shall so notify Tenant, indicating the nature of Landlord’s dissatisfaction. Tenant shall be
responsible for abating or, at Landlord’s election, paying the cost of abating any conditions(s) indicated by Landlord.	
	 
	
B.      		
Effective as of Reduction Space 2 Effective Date, the Premises is decreased from 22,095 rentable square feet on the 4th floor of the Science
Building by the elimination of Reduction Space 2. As of the Reduction Space 2 Effective Date, Reduction Space 2 shall be deemed surrendered by Tenant to Landlord, the Lease shall be deemed terminated with respect to Reduction Space 2, and the
“Premises”, as defined in the Lease, shall be deemed to mean the Premises as it is then constituted under the Lease, less Reduction Space 2; provided, if
Tenant shall violate any provision hereof or if Tenant’s representations herein shall be false or materially misleading, Landlord shall have the right to declare this Second Amendment null and void and to reinstate the Lease with respect
to	
	 

4

	 	
Reduction Space 2 in addition to, and not in lieu of, any other rights or remedies available to Landlord.	
	 
	 	
C.      		
If Tenant shall holdover in Reduction Space 2 beyond the day immediately preceding the Reduction Space 2 Effective Date, the terms of Section 22 of the Lease shall apply to Reduction Space 2.	
	 
	 	
D.      		
Notwithstanding anything in this Section 2.01 to the contrary, Section 2 of this Second Amendment is specifically contingent upon Landlord, on or before 30 days after the date of this Second Amendment (the
“Reduction Space 2 Contingency Date”) entering into a new lease, lease amendment or other written agreement (“New Agreement”) with another tenant or third party (“New Tenant”) to lease Reduction Space
2.	
	 
	 	 	
Landlord is currently negotiating the terms of the New Agreement with the New Tenant. Landlord shall notify Tenant within 3 business days after the full execution of the New Agreement by New Tenant. If the New
Agreement has not been fully executed on or before the Reduction Space 2 Contingency Date, then Landlord may terminate this Section 2 by notifying Tenant (“Reduction Space 2 Termination
Notice”) on or before the earlier of (i) 5 business days after the Reduction Space 2 Contingency Date and (ii) execution of the New Agreement by New Tenant. Landlord’s failure to provide a
Reduction Space 2 Termination Notice within the time periods provided above shall render Landlord’s termination right as provided in this Section 2.01D null and void, and the contingency described in this Section 2.01(D) shall be deemed waived.
Time is of the essence with respect to the time periods provided herein. In the event that the contingency is not satisfied or waived by Landlord, if Tenant has paid the Reduction Space 2 Reduction Fee to Landlord (as described in Section 2.03 of
this Second Amendment), Landlord shall return the Reduction Space 2 Reduction Fee to Tenant within 14 days after the Reduction Space 2 Contingency Date and this Section 2 shall be null and void and of no force or effect, and the Lease and this
Second Amendment otherwise shall continue in full force and effect.	
	 
	
2.02.      		
Base Rent/Lab Base Rent. Effective as of September 1, 2009, the schedule of Lab Base Rent payable with respect to the Premises for the balance of the Term and Extended Term
is the following:	
	 

	
Period 
		
 		
Annual Rate 
		
 		
Monthly LAB 
	
	
 
		
 		
Per Square 
		
 		
Base Rent 
	
	
 
		
 		
Foot 
		
 		
 
	
	

		
		

		
		

	
	
9/1/09 – 11/30/11 
		
 		
$48.00 
		
 		
$92,796.00 
	
	

		
		

		
		

	
	
12/01/11 – 11/30/16 
		
 		
$53.00 
		
 		
$102,462.25 
	
	

		
		

		
		

	
	
12/01/16 – 01/31/17 
		
 		
$53.00 
		
 		
$102,462.25 
	
	

		
		

		
		

	

	
2.03.      		
Additional Consideration. As additional consideration for the reduction of the Premises by Reduction Space 2, Tenant agrees to pay Landlord $1,000,000.00 (the “Reduction Space 2 Reduction Fee”). Tenant agrees to pay Landlord
$500,000.00 of the Reduction Space 2 Reduction Fee on or before January 1, 2010, and the remaining $500,000.00 of the Reduction Space 2 Reduction Fee	
	 

5

	 	
on or before July 1, 2010. Failure to pay the Reduction Space 2 Reduction Fee as herein provided shall be deemed a default under the Lease.	
	 
	 	
2.04.      		
Tenant’s Pro Rata Share. Commencing on Reduction Space 2 Effective Date, Tenant’s Pro Rata Share for the Science Building is decreased from 34.7049% to
17.7754% and Tenant’s Pro Rata Share for the Buildings is decreased by 7.9175% from 16.2308% to 8.3133%. Notwithstanding anything in this Second Amendment to the contrary, Tenant shall remain liable for all year-end adjustments with respect to Tenant’s Pro Rata Share of Lab Expenses and Lab Taxes applicable to Reduction
Space 2 for that portion of the calendar year or fiscal year, as applicable, preceding the Reduction Space 2 Effective Date. Such adjustments shall be paid at the time, in the manner and otherwise in accordance with the terms of the Lease, unless
otherwise specified in this Second Amendment.	
	 
	 	
2.05.      		
Parking. Effective as of Reduction Space 2 Effective Date, Section 2 (Parking) of Exhibit E of the Lease shall be amended to reflect that 26 unreserved parking spaces leased
to Tenant will be deemed returned to Landlord effective as of Reduction Space 2 Effective Date, and shall no longer be available to Tenant.	
	 
	 	 	
The use of the remaining Spaces shall be subject to the terms of Section 2 of Exhibit E of the Lease.	
	 
	 	
2.06.      		
Demise. Notwithstanding any contrary provision in the Lease or this Second Amendment, prior to the Reduction Space 2 Effective Date, Tenant shall (i) make such alterations
and improvements as are necessary to separately demise the systems (and related meters, if any) currently serving the Reduction Space 2 in common with other portions of the Premises, from the remaining portions of the Premises, such that they will
serve only the Premises as it is then constituted under the Lease after the termination of the Reduction Space 2; (ii) remove the internal stairway connecting the 4th Floor
Lab Space and the 3rd Floor Lab Space and cap the ceiling of the 3rd Floor Space in compliance
with the Lease and applicable law; and (iii) Tenant shall be obligated to do all things necessary to decommission Reduction Space 2 as lab space and shall provide Tenant with the Inspection Report with respect to Reduction Space 2.	
	 
	
3.      		
Other Pertinent Provisions. Landlord and Tenant agree that, effective as of the date of this Second Amendment (unless different effective date(s) is/are specifically
referenced in this Section), the Lease shall be amended in the following additional respects:	
	 
	 	
3.01.      		
Landlord Notice Addresses. Effective as of date of this Second Amendment, Section 1.12 (Notice Addresses) of the Lease is hereby amended to reflect that notices to Landlord
shall be addressed as follows:	
	 

	
Landlord: 
		
 		
With copies to: 
	
	
 
	
	
MA-Riverview/245 First Street, L.L.C. 
		
 		
Equity Office 
	
	
c/o Equity Office 
		
 		
Two North Riverside Plaza 
	
	
125 Summer Street, 17th Floor 
		
 		
Suite 2100 
	
	
Boston, Massachusetts 02110 
		
 		
Chicago, Illinois 60606 
	
	
Attention: Property Manager 
		
 		
Attn: General Counsel 
	

6

	
and

	
Neal, Gerber & Eisenberg LLP

Two North LaSalle Street

Suite 1700

Chicago, Illinois 60602

Attn: Audrey E. Selin, Esq.

Rent shall be made payable to an entity, and sent to the address or addresses, Landlord designates in writing to Tenant and shall be made by good and sufficient check payable in United States of America currency, by
federal wire transfer of immediately available funds to an account designated by Landlord or by other means acceptable to Tenant and Landlord.

	
3.02.      		
Unrelated Business Income. The following is added as Section 26.10 of the Lease:	
	 
	 	
“Unrelated Business Income. If Landlord is advised by its counsel at any time that any part of the payments by Tenant to Landlord
under this Lease may be characterized as unrelated business income under the United States Internal Revenue Code and its regulations, then Tenant shall enter into any reasonable amendment proposed by Landlord to avoid such income, so long as the
amendment does not increase the amount that would otherwise be payable by Tenant under this Lease or require Tenant to accept fewer services from Landlord than this Lease provides. Landlord shall reimburse Tenant for reasonable legal fees incurred
by Tenant to review such amendment, which reimbursement not to exceed $1,500.00.”	
	 
	
3.03.      		
Parking. Effective as of date of this Second Amendment, Section 2.02 of Exhibit E of the Lease, as amended by Section 11.01.B. of the First Amendment, is further amended by
deleting (i) the amount “210.00” and replacing it with the amount “$260.00, and (ii) the amount “260.00” and replacing the amount with “$290.00”.	
	 
	
3.04.      		
Deleted Provisions. Section 11.02 (Right of First Offer) of First Amendment and Section 5 (Right of First Offer) of Exhibit E of the Lease are hereby deleted in their
entirety and are of no further force and effect.	
	 
	
3.05.      		
Roof Signs. Effective as of the date of this Second Amendment, Section 11.03 (Signage) of First Amendment is hereby amended by deleting any references to the Roof Signs. If
Tenant has installed such Roof Signs then effective as of the date of this Second Amendment Tenant shall remove such Roof Signs in accordance with the terms of the Lease.	
	 
	
3.06.      		
Storage and Facility Space. Effective as of the date of this Second Amendment, the definition of “Premises” shall be amended to clarify that “Tenant’s
proportionate share of the Ph Treatment Room on the first floor of the Science Building and Tenant’s proportionate share of the 3A Annex Space in the Science Building” means and includes Rooms 3300, 3103 and 3104 located in the annex of
the third floor of the Building and the space currently made available	
	 

7

	 	
to Tenant in the water treatment facility located on the first floor of the Building (the “Current Storage and Facility Space”). The Current Storage and Facility Space shall remain the same throughout the
Term and shall be unaffected by the termination of Reduction Space 1 and/or the Reduction Space 2.	
	 
	
4.      		
Letter of Credit. The parties agree that Landlord is currently holding a Letter of Credit in the amount of $4,000,000.00. The parties agree that the Lease shall
be amended with respect to the Letter of Credit as follows:	
	 
	 	
4.01.      		
Effective as of the date of this Second Amendment, Section 6 (Letter of Credit) of the First Amendment shall be deleted in its entirety.	
	 
	 	
4.02.      		
Effective as of the date of this Second Amendment, Section 1.01 (General Provisions) of Exhibit E (Additional Provisions) to the Lease is hereby amended as follows: (i) the words “in the face amount of
$2,500,000.00 (the “Letter of Credit Amount”)” shall be deleted in their entirety and replaced with the following words “in the face amount of
$4,000,000.00 (the “Letter of Credit Amount”)” and (ii) the number “120” in the 13th line is hereby deleted and replaced with “60”.	
	 
	 	
4.03.      		
Effective as of the date of this Second Amendment, Section 1.06 (Reduction of Letter of Credit Amount) of Exhibit E (Additional Provisions) to the Lease is hereby amended as follows: the words “then Tenant may reduce the Letter of Credit Amount as follows: (i) $2,000,000.00 effective as of the third anniversary of the Lab Space Commencement Date; (ii) $1,625,000.00
effective as of the fourth anniversary of the Lab Space Commencement Date; (iii) $1,250,000.00 effective as of the fifth anniversary of the Lab Space Commencement Date;	
	 
	 	 	
(iv)      		
$875,000.00 effective as of the sixth anniversary of the Lab Space	
	 
	 	 	
Commencement Date; and (v) $500,000.00 effective as of the seventh anniversary of the Lab Space Commencement Date.” shall be deleted in their entirety and replaced with the following words:	
	 
	 	 	
“then Tenant may reduce the Letter of Credit Amount to the following amounts:	
	 
	 	 	
(i)      		
$2,500,000.00 effective as of December 1, 2009; (ii) $1,800,000.00 effective as of December 1, 2010; (iii) $1,200,000.00 effective as of December 1, 2011; and (iv) $800,000.00 effective as of December
1, 2012.”	
	 
	 	
4.04.      		
Tenant shall maintain and keep in effect during the remainder of the Extended Term the Letter of Credit that Tenant provided in connection with the execution of the Lease. If at any time during the Term (as the same
may be extended) Landlord reasonably determines that the financial condition of the issuing bank is such that Landlord’s ability to draw upon the Letter of Credit is, or in the future may be, impaired, restricted, refused or otherwise affected,
then Tenant shall, within 10 business days of Landlord’s written request to Tenant, obtain a renewal or replacement Letter of Credit in form acceptable to Landlord in substitution of the then current Letter of Credit from an issuing bank
acceptable to Landlord in Landlord’s reasonable discretion. S	
	 
	
5.      		
Contingency. If Section 2 is deemed null and void pursuant to Section 2.01.D. with respect to Reduction Space 2, then all Sections of the Second Amendment other than
Section 1, Sections 3.01, 3.02, 3.03 and 3.06, Section 4.04, Section 5, and the first	
	 
	
8      		
	
	 

	 	
sentence of Section 7 shall be null and void and of no force or effect, and the Lease shall continue in full force and effect as if the voided sections of this Second Amendment had not been a part of this Second
Amendment.	
	 
	
6.      		
Representations. Each party represents to the other that it has full power and authority to execute this Second Amendment and that no consent or approval of any third
party is required to enter into this Second Amendment. Tenant represents that it has not made any assignment, sublease, transfer, conveyance of the Lease or any interest therein or in Reduction Space 1 and Reduction Space 2 other than those
explicitly recited herein and further represents that it has no knowledge of any claim, demand, obligation, liability, action or cause of action by any other party respecting, relating to or arising out of Reduction Space 1 and Reduction Space 2,
and Tenant agrees to indemnify and hold harmless Landlord and the Landlord Related Parties from all liabilities, expenses, losses, claims, demands, judgments, damages or costs, including without limitation, reasonable attorneys’ fees, arising
from (i) any breach of any of the foregoing representations or (ii) to the extent Tenant would be obligated to so indemnify and hold Landlord and/or any of the Landlord Related Parties harmless under the terms of the Lease, any claim, demand,
obligation, liability, action or cause of action by any other party hereafter made respecting, relating to or arising out of Reduction Space 1 and/or Reduction Space 2.	
	 
	 	
Tenant acknowledges that Landlord will be relying on this Second Amendment in entering into leases for Reduction Space 1 and Reduction Space 2 with other parties.	
	 
	
7.      		
Miscellaneous.	
	 
	 	
7.01.      		
The Lease as amended by this Second Amendment and the attached exhibits, which are hereby incorporated into and made a part of this Second Amendment, set forth the entire agreement between the parties with respect to
the matters set forth herein. This Second Amendment shall be binding upon and shall inure to the benefit of Landlord and Tenant and their respective legal representatives, successors and assigns. There have been no additional oral or written
representations or agreements. Under no circumstances shall Tenant be entitled to any Rent abatement, improvement allowance, leasehold improvements, or other work to the Premises, or any similar economic incentives that may have been provided to
Tenant in connection with entering into the Lease, unless specifically set forth in this Second Amendment. Except as required by Law or the Securities Exchange Commission rules and regulations, Tenant agrees that neither Tenant nor its agents or any
other parties acting on behalf of Tenant shall disclose any matters set forth in this Second Amendment or disseminate or distribute any information concerning the terms, details or conditions hereof to any person, firm or entity (other than to
Tenant’s agents and other parties acting on behalf of Tenant without obtaining the express written consent of Landlord.	
	 
	 	
7.02.      		
Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.	
	 
	 	
7.03.      		
In the case of any inconsistency between the provisions of the Lease and this Second Amendment, the provisions of this Second Amendment shall govern and control.	
	 
	 	
7.04.      		
Submission of this Second Amendment either party is not an offer to enter into this Second Amendment but rather is a solicitation for such an offer. Neither	
	 

9

	 	
Landlord nor Tenant shall not be bound by this Second Amendment until both Landlord and Tenant have executed and delivered the same to the other. Tenant agrees that its execution of this Second Amendment constitutes a
firm offer to enter the same, which may not be withdrawn for a period of 5 business days after delivery to Landlord (or such other period as may be expressly provided in any other agreement signed by the parties).	
	 
	
7.05.      		
The capitalized terms used in this Second Amendment shall have the same definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Second
Amendment.	
	 
	
7.06.      		
Tenant hereby represents to Landlord that Tenant has dealt with no broker, agent or finder in connection with this Second Amendment, other than the Tenant’s broker, Richards, Barry, Joyce and Partners
(“Tenant’s Broker”).	
	 
	 	
Tenant agrees to indemnify and hold Landlord, its members, managers, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such
agents (collectively, the “Landlord Related Parties”) harmless from all claims of any brokers claiming to have represented Tenant in connection with this
Second Amendment including Tenant’s Broker. Landlord hereby represents to Tenant that Landlord has dealt with no broker, agent or finder in connection with this Second Amendment other than Tenant’s Broker. Landlord agrees to indemnify and
hold Tenant, its members, managers, principals, beneficiaries, partners, officers, directors, employees, and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented
Landlord in connection with this Second Amendment.	
	 
	
7.07.      		
Intentionally omitted.	
	 
	
7.08.      		
This Second Amendment may be executed in counterparts and shall constitute an agreement binding on all parties notwithstanding that all parties are not signatories to the original or the same counterpart provided that
all parties are furnished a copy or copies thereof reflecting the signature of all parties. Transmission of a facsimile or by email of a pdf copy of the signed counterpart of this Second Amendment shall be deemed the equivalent of the delivery of
the original, and any party so delivering a facsimile or pdf copy of the signed counterpart of this Second Amendment by email transmission shall in all events deliver to the other party an original signature promptly upon request.	
	 
	
7.09.      		
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECOND AMENDMENT OR THE LEASE, THE LIABILITY OF LANDLORD	
	 
	 	
(AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF LANDLORD IN THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY THIRD
PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY. TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER LANDLORD NOR
ANY LANDLORD RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL LANDLORD OR	
	 

10

ANY LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY LANDLORD, TENANT
SHALL GIVE LANDLORD AND THE MORTGAGEE(S) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES, NOTICE AND REASONABLE TIME TO CURE THE ALLEGED DEFAULT.  WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL LANDLORD OR ANY MORTGAGEES OR LANDLORD RELATED PARTIES
EVER BE LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES OR ANY LOST PROFITS OF TENANT.

[SIGNATURE ARE ON FOLLOWING PAGE]

11

     IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Second Amendment under seal in two or more counterparts as of the day and year first above
written.

	
LANDLORD: 
		
 		
 
		
 		
 
	
	
MA-RIVERVIEW/245 FIRST STREET, 
		
 		
L.L.C., 
		
 		
A 
	
	
Delaware limited liability company 
		
 		
 
		
 		
 
	
	
By: Illegible 
		
 		
 
		
 		
 
	
	
Name: 
		
 		
 
		
 		
 
	
	
Title: 
		
 		
 
		
 		
 
	
	
Date: August 3, 2009 
		
 		
 
		
 		
 
	

	
TENANT: 
		
 		
 
		
 		
 
	
	
COMBINATORX, INCORPORATED, 
		
 		
a 
		
 		
Delaware 
	
	
corporation 
		
 		
 
		
 		
 
	
	
By: 
		
 		
/s/ Robert Forrester 
		
 		
 
		
 		
 
	
	
Name: 
		
 		
Robert Forrester 
		
 		
 
		
 		
 
	
	
Title: 
		
 		
Interim President and CEO 
		
 		
 
		
 		
 
	
	
Date: July 6, 2009 
		
 		
 
		
 		
 
	

12

	
EXHIBIT A

	
FORM OF SUITE 1600 BILL OF SALE

This Exhibit is attached to and made a part of the Second Amendment by and between

MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company

(“Landlord”) and COMBINATORX, INCORPORATED, a Delaware corporation (“Tenant”) for space in the Building located at 245 First Street, Cambridge, Massachusetts 02142.

	
SUITE 1600 BILL OF SALE

     Seller, COMBINATORX, INCORPORATED, a Delaware corporation, having its principal place of business at 245
First Street, Suite 300, Cambridge, Massachusetts 02142, in consideration of $1.00 and other valuable consideration, receipt and sufficiency whereof is hereby acknowledged, does hereby sell, assign, transfer and set over to Buyer,
MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company, the personal property described on Schedule
1 attached hereto (collectively, the “Suite 1600 Personal Property”) located in, or otherwise servicing, Suite No.
1600 located on the 16th floor of the building commonly known as 245 First Street located at 245 First Street, Cambridge, Massachusetts 02142.

     Seller hereby represents and warrants to Buyer that Seller is the absolute owner of said Suite 1600 Personal Property, that said Suite 1600 Personal Property is free and clear of all
liens, charges and encumbrances, and that Seller has full right, power and authority to sell said Suite 1600 Personal Property and to make this bill of sale. ALL WARRANTIES OF QUALITY, CONDITION, FITNESS OF USE, AND MERCHANTABILITY ARE HEREBY
EXCLUDED AND BUYER ACCEPTS THE SUITE 1600 PERSONAL PROPERTY IN ITS “AS IS” / “WHERE IS” CONDITION.

     If this bill of sale is signed by more than one person, all persons so signing shall be jointly and severally bound hereby.

IN WITNESS WHEREOF, Seller has caused this bill of sale to be signed and sealed in

	
its name by its officers thereunto duly authorized this 
		
 		
day of 
		
 		
, 2009. 
	
	
SELLER: 
		
 		
 
		
 		
 
		
 		
 
	
	
COMBINATORX, 
		
 		
INCORPORATED, a Delaware 
		
 		
 
		
 		
 
	
	
corporation 
		
 		
 
		
 		
 
		
 		
 
	
	
By: 
		
 		
 
		
 		
 
		
 		
 
	
	
Name: 
		
 		
 
		
 		
 
		
 		
 
	
	
Title: 
		
 		
 
		
 		
 
		
 		
 
	

13

	
Commonwealth of Massachusetts 
		
 		
 
		
 		
 
	
	
Middlesex, ss. 
		
 		
 
		
 		
 
		
 		
 
	
	
On this 
		
 		
day of 
		
 		
      , 2009, 
		
 		
before me, the undersigned notary 
	
	
public, personally appeared 
		
 		
, the 
		
 		
                                                                    of 
	

CombinatoRx, Incorporated, proved to me through satisfactory evidence of identification, which

	
was 
		
 		
, to be the person whose name is signed on the preceding or attached 
	
	
document, and acknowledged to me that he signed it, as 
		
 		
of 
	
	
CombinatoRx, Incorporated, voluntarily for its stated purpose. 
		
 		
 
	

Notary Public 
___________________________

My commission expires 
___________________

14

SCHEDULE 1

LIST OF SUITE 1600 PERSONAL PROPERTY

	
                                  ITEM DESCRIPTION 
		
 		
QUANTITY 
	
	

		
		

	
	
 
	
	
3 drawer all wood filing cabinet 
		
 		
8 
	
	

		
		

	
	
3 drawer wood top metal filing cabinet 
		
 		
9 
	
	

		
		

	
	
5 drawer metal filing cabinet 
		
 		
8 
	
	

		
		

	
	
2 drawer metal filing cabinet 
		
 		
12 
	
	

		
		

	
	
2 drawer wood top metal filing cabinet 
		
 		
3 
	
	

		
		

	
	
2 drawer wood front/top filing cabinet 
		
 		
7 
	
	

		
		

	
	
wooden front PED 
		
 		
36 
	
	

		
		

	
	
guest chairs (wooden and plastic arms) 
		
 		
113 
	
	

		
		

	
	
conference room tables 
		
 		
5 
	
	

		
		

	
	
small metal bookcase 
		
 		
19 
	
	

		
		

	
	
large metal bookcase 
		
 		
13 
	
	

		
		

	
	
cafeteria tables 
		
 		
10 
	
	

		
		

	
	
cafeteria chairs 
		
 		
80 
	
	

		
		

	
	
bar stools 
		
 		
11 
	
	

		
		

	
	
round wooden office tables 
		
 		
4 
	
	

		
		

	
	
dishwasher 
		
 		
1 
	
	

		
		

	
	
small dairy refrigerator 
		
 		
2 
	
	

		
		

	
	
toaster oven 
		
 		
1 
	
	

		
		

	
	
cubicles 
		
 		
30 
	
	

		
		

	
	
window cubicles 
		
 		
7 
	
	

		
		

	
	
offices 
		
 		
27 
	
	

		
		

	
	
shared offices 
		
 		
4 
	
	

		
		

	
	
hoteling space (3+ seats) 
		
 		
1 
	
	

		
		

	
	
video conferencing equipment 
		
 		
1 
	
	

		
		

	
	
IT rack 
		
 		
1 
	
	

		
		

	
	
projectors and screens 
		
 		
5 
	
	

		
		

	

15

	
EXHIBIT B

	
FORM OF SUITE 400 BILL OF SALE

This Exhibit is attached to and made a part of the Second Amendment by and between

MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company

(“Landlord”) and COMBINATORX, INCORPORATED, a Delaware corporation (“Tenant”) for space in the Building located at 245 First Street, Cambridge, Massachusetts 02142.

	
SUITE 400 BILL OF SALE

     Seller, COMBINATORX, INCORPORATED, a Delaware corporation, having its principal place of business at 245
First Street, Suite 300, Cambridge, Massachusetts 02142, in consideration of $1.00 and other valuable consideration, receipt and sufficiency whereof is hereby acknowledged, does hereby sell, assign, transfer and set over to Buyer,
MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company, the personal property described on Schedule
1 attached hereto (collectively, the “Suite 400 Personal Property”) located in, or otherwise servicing, Suite No.
400 located on the 4th floor of the building commonly known as 245 First Street located at 245 First Street, Cambridge, Massachusetts 02142.

     Seller hereby represents and warrants to Buyer that Seller is the absolute owner of said Suite 400 Personal Property, that said Suite 400 Personal Property is free and clear of all liens,
charges and encumbrances, and that Seller has full right, power and authority to sell said Suite 400 Personal Property and to make this bill of sale. ALL WARRANTIES OF QUALITY, CONDITION, FITNESS OF USE, AND MERCHANTABILITY ARE HEREBY EXCLUDED AND
BUYER ACCEPTS THE SUITE 400 PERSONAL PROPERTY IN ITS “AS IS” / “WHERE IS” CONDITION.

     If this bill of sale is signed by more than one person, all persons so signing shall be jointly and severally bound hereby.

     IN WITNESS WHEREOF, Seller has caused this bill of sale to be signed and sealed in its name by its officers thereunto duly authorized this  day
of , 2009.

	
SELLER:

COMBINATORX, INCORPORATED, a Delaware corporation

By: 
_____________________________________
 Name: 
__________________________________
 Title: 
____________________________________

16

	
Commonwealth of Massachusetts 
		
 		
 
		
 		
 
	
	
Middlesex, ss. 
		
 		
 
		
 		
 
		
 		
 
	
	
On this 
		
 		
day of 
		
 		
      , 2009, 
		
 		
before me, the undersigned notary 
	
	
public, personally appeared 
		
 		
, the 
		
 		
                                                                    of 
	

CombinatoRx, Incorporated, proved to me through satisfactory evidence of identification, which

	
was 
		
 		
, to be the person whose name is signed on the preceding or attached 
	
	
document, and acknowledged to me that he signed it, as 
		
 		
of 
	
	
CombinatoRx, Incorporated, voluntarily for its stated purpose. 
		
 		
 
	

Notary Public 
___________________________

My commission expires 
___________________

17

SCHEDULE 1

LIST OF SUITE 400 PERSONAL PROPERTY

	
                                  ITEM DESCRIPTION 
		
 		
QUANTITY 
	
	

		
		

	
	
 
	
	
3 drawer wood top metal filing cabinet 
		
 		
4 
	
	

		
		

	
	
5 drawer metal filing cabinet 
		
 		
1 
	
	

		
		

	
	
2 drawer metal filing cabinet 
		
 		
1 
	
	

		
		

	
	
2 drawer wood top metal filing cabinet 
		
 		
5 
	
	

		
		

	
	
guest chairs (wooden and plastic arms) 
		
 		
36 
	
	

		
		

	
	
conference room tables 
		
 		
1 
	
	

		
		

	
	
large metal bookcase 
		
 		
2 
	
	

		
		

	
	
round wooden office tables 
		
 		
1 
	
	

		
		

	
	
small dairy refrigerator 
		
 		
3 
	
	

		
		

	
	
cubicles 
		
 		
12 
	
	

		
		

	
	
offices 
		
 		
4 
	
	

		
		

	
	
shared offices 
		
 		
6 
	
	

		
		

	
	
carrels 
		
 		
18 
	
	

		
		

	
	
projectors and screens 
		
 		
1 
	
	

		
		

	
	
Metal pedestal small mobile files cabinets 
		
 		
18 
	
	

		
		

	
	
Animal storage racks 
		
 		
9 
	
	

		
		

	
	
cold room 
		
 		
1 
	
	

		
		

	
	
cage washer 
		
 		
1 
	
	

		
		

	
	
autoclave 
		
 		
2 
	
	

		
		

	
	
necropsy table 
		
 		
1 
	
	

		
		

	
	
duplex work bench (stay clean) ventilated 
		
 		
1 
	
	

		
		

	
	
fume hood 
		
 		
4 
	
	

		
		

	
	
cable trays in server room 
		
 		
all 
	
	

		
		

	
	
glass wash machine 
		
 		
1 
	
	

		
		

	

18EXHIBIT 10.1

 

FEDERAL HOME LOAN BANK OF SEATTLE

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this "Agreement"), dated as of ______, 2009, is entered into by and between Federal Home Loan Bank of Seattle, (the "Bank"), a federal home loan bank organized under the Federal Home Loan Bank Act, as amended (the "Act"), and ________________ ("lndemnitee"), a _____________ of the Bank.
RECITALS

A.The Bank and Indemnitee recognize the litigation risks inherent in service as a director or officer of the Bank, including the substantial costs involved in defending such matters.

B.The Bank's bylaws (the "Bylaws") provide for indemnification of the Bank's directors and officers as permitted by the Act and the rules and regulations promulgated thereunder (the "Rules").

C.The Bylaws specifically provide that they are not exclusive, and contemplate that contracts may be entered into between the Bank and its directors and officers with respect to indemnification.

D.Indemnitee has indicated a desire to supplement the indemnification provisions in the Bylaws to provide additional protections against the risks associated with Indemnitee's service to the Bank and further clarify Indemnitee's rights with respect to indemnification in certain circumstances.  

E.To induce Indemnitee to continue Indemnitee's service as a director or officer of the Bank, the Bank and Indemnitee now agree that they should enter into this Indemnification Agreement.
AGREEMENT

1.Indemnification of Indemnitee
1.1Scope

Subject to Section 4.1 and all other terms and conditions of this Agreement, the Bank agrees to indemnify and hold harmless Indemnitee, to the full extent permitted by law, whether or not specifically authorized by this Agreement, the Organization Certificate of the Bank (the "Organization Certificate"), the Bylaws, the Act, the Rules or otherwise, for any Indemnifiable Losses (as defined below) which Indemnitee is or becomes legally obligated to pay in connection with any Proceeding.  In the event of any change, after the date of this Agreement, in any applicable law, statute or rule regarding the right of a federal home loan bank to indemnify a director or officer, such changes, to the extent that they would expand Indemnitee's indemnification rights, shall be within the purview of Indemnitee's rights and the Bank's obligations under this Agreement, and, to the extent that they would narrow Indemnitee's indemnification rights, shall not affect or limit the scope of this Agreement; provided, however, that any change that is required by applicable laws, statutes or rules to be applied to this Agreement shall be so applied regardless of whether the effect of such change is to narrow Indemnitee's rights.
1.2Nonexclusivity 

The indemnification provided by this Agreement is not exclusive of any rights to which Indemnitee may be entitled under the Organization Certificate, the Bylaws, any other agreement, any vote of disinterested directors, the Act, or otherwise, whether as to action in Indemnitee's official capacity or otherwise.
1.3Definition of Indemnifiable Losses

For purposes of this Agreement, the term "Indemnifiable Losses" shall include (without limitation) any and all damages (compensatory, exemplary, punitive or otherwise), judgments, fines, penalties, settlements, costs, attorneys' fees and disbursements, costs of attachment or similar bonds, investigations, expenses of establishing a right to indemnification under this Agreement, and any other losses, claims, liabilities or other expenses incurred in connection with a Proceeding, subject to the limitations set forth in Section 4.1 below.
1.4Definition of Proceeding

For purposes of this Agreement, the term "Proceeding" shall include (without limitation) any threatened, pending or completed claim, action, suit, hearing, arbitration, alternative dispute resolution mechanism or proceeding, including any appeal or other proceeding for review, whether brought by or in the right of the Bank or otherwise, whether of a civil, criminal, administrative or investigative nature, and whether formal or informal, in which Indemnitee may be or may have been involved as a party or otherwise (including without limitation as a witness), (a) by reason of the fact that Indemnitee is or was, or has agreed to become a director or officer of the Bank, (b) by reason of any actual or alleged error or misstatement or misleading statement made or suffered by Indemnitee in connection with his or her service as a director or officer of the Bank, (c) by reason of any action taken by Indemnitee or of any inaction on Indemnitee's part while acting as such director or officer, or (d) by reason of the fact that Indemnitee was serving at the request of the Bank as a director, trustee, officer, employee, member or agent of the Bank or of the Affordable Housing Advisory Council or another corporation, partnership, joint venture, trust, trade association, fiscal agent or other enterprise (including without limitation employee benefit plans and administrative committees thereof) (which request will be conclusively presumed in the case of any of the foregoing that are "affiliates" of the Bank as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended); provided, however, that, except with respect to an action to enforce the provisions of this Agreement, the term "Proceeding" shall not include any action, suit, claim or proceeding instituted by or at the direction of Indemnitee seeking to enforce rights to indemnification, except for an Enforcement Action (as defined in Section 3.1), unless such action, suit, claim or proceeding is or was authorized or ratified by the Bank's Board of Directors. 
1.5Determination of Entitlement

In the event that a determination of Indemnitee's entitlement to indemnification is required pursuant to applicable law, such determination shall be made by:  (i) a majority of a quorum of disinterested directors of the Bank acting by resolution duly adopted by such directors, or (ii) if such disinterested directors are unable to adopt such a resolution, by independent legal counsel selected by the disinterested directors of the Bank, or (iii) if neither (i) nor (ii) is permitted by the applicable law requiring the determination, then by the party specified in such applicable law as the determining party.  "Disinterested director" shall mean a Director who does not have a personal interest in the determination of entitlement to indemnification.  "Independent legal counsel" shall mean a law firm or a member of a law firm that is not presently, nor has been in the past three years, retained to represent:  (i) the Bank or Indemnitee in any matter material to either party, or (ii) any other party to the Proceeding giving rise to the claim for indemnification.  In any such determination of Indemnitee's entitlement to indemnification: (a) Indemnitee shall initially be presumed in all cases to be entitled to indemnification, (b) Indemnitee may establish a conclusive presumption of any fact necessary to such a determination by delivering to the Bank a declaration made under penalty of perjury that such fact is true and (c) unless the Bank shall deliver to Indemnitee written notice of a determination that Indemnitee is not entitled to indemnification within sixty (60) days of the Bank's receipt of Indemnitee's initial written request for indemnification, such determination shall conclusively be deemed to have been made in favor of the Bank's provision of indemnification and the Bank agrees not to assert otherwise.
1.6Survival

The indemnification provided under this Agreement shall apply to any and all Proceedings, notwithstanding that Indemnitee has ceased to serve in a capacity referred to in Section 1.4(a)-(d).

1.7Witness

Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of the fact that Indemnitee is or was a director or officer of the Bank, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Indemnifiable Losses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.
2.Expense Advances
2.1Generally

The right to indemnification for Indemnifiable Losses conferred by Section 1 shall include the right to have the Bank pay Indemnitee's expenses in any Proceeding as such expenses are incurred and in advance of such Proceeding's final disposition (such right is referred to hereinafter as an "Expense Advance"), subject to Sections 2.2, 4 and 5 and all other terms and conditions of this Agreement.  
2.2Conditions to Expense Advance

The Bank's obligation to provide an Expense Advance is subject to Indemnitee or Indemnitee's representative having first executed and delivered to the Bank an undertaking, which need not be secured and shall be accepted without reference to Indemnitee's financial ability to make repayment, by or on behalf of Indemnitee to repay all Expense Advances if and to the extent that it shall ultimately be finally adjudged that Indemnitee is not entitled to be indemnified under this Agreement or otherwise. Any matter to be determined under this Agreement will be "finally adjudged" if it has been determined in a final, unappealable decision rendered by a court having jurisdiction over the parties and the subject matter of the dispute.
2.3Subrogation

In the event of payment under this Agreement, the Bank shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Bank effectively to bring suit to enforce such rights.
3.Procedures for Enforcement
3.1Enforcement

In the event that a claim for indemnification hereunder is made and is not paid in full within sixty (60) days after written notice of such claim is delivered to the Bank, except in the case of a claim for Expense Advance, in which case the applicable period shall be thirty (30) days, Indemnitee may, but need not, at any time bring suit against the Bank to recover the unpaid amount of the claim (an "Enforcement Action"), subject to all other terms, conditions and limitations of this Agreement.
3.2Presumptions in Enforcement Action

In any Enforcement Action, the following presumptions (and limitation on presumptions) shall apply:

(a)The Bank shall conclusively be presumed to have entered into this Agreement and assumed the obligations imposed on it to induce Indemnitee to accept the position of, or to continue as a director or officer of the Bank;

(b)Indemnitee shall be presumed to be entitled to indemnification upon submission of a written claim (and, in an action brought to enforce a claim for an Expense Advance, where the required undertaking has been tendered to the Bank), and the Bank shall have the burden of proof to overcome the presumption that Indemnitee is so entitled; 

(c)Neither (i) the failure of the Bank (including its Board of Directors or independent legal counsel) to have made a determination prior to the commencement of the Enforcement Action that indemnification of Indemnitee is proper in the circumstances nor (ii) an actual determination by the Bank, its Board of Directors or independent legal counsel that Indemnitee is not entitled to indemnification shall be a defense to the Enforcement Action or create a presumption that Indemnitee is not entitled to indemnification; and

(d)Indemnitee shall be presumed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Bank, including financial statements, or on information supplied to an Indemnitee by the officers of the Bank in the course of their duties, or on the advice of legal counsel for the Bank or on information or records given or reports made to the Bank by an independent certified public accountant or by an appraiser, actuary or other expert selected with reasonable care by the Bank.  In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Bank, unless affiliated with Indemnitee, shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of this Section 3.2(d) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Bank.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence.
3.3Attorneys' Fees and Expenses for Enforcement Action

The Bank shall indemnify and hold harmless Indemnitee against all of Indemnitee's reasonable fees and expenses in bringing and pursuing any Enforcement Action (including reasonable attorneys' fees at any stage, including on appeal); provided, however, that the Bank shall not be required to provide such indemnity (a) if and to the extent that it has been finally adjudged that Indemnitee in such Enforcement Action is not entitled to such indemnity or (b) to the extent limited under Section 4.1 below.  
4.Limitations
4.1Limitation on Indemnity

Notwithstanding any other provision of this Agreement, the Bank shall not be obligated to provide indemnification pursuant to this Agreement:

 (a)for Indemnifiable Losses that have been paid directly to Indemnitee by an insurance carrier under a policy of insurance maintained by the Bank;

(b)on account of Indemnitee's conduct which is finally adjudged to have been intentional misconduct, a knowing violation of law, or a transaction from which Indemnitee derived personal benefit in money, property or services to which Indemnitee was not legally entitled; 

(c)to the extent that Indemnitee is indemnified and actually paid otherwise than pursuant to this Agreement;

(d)if it has been finally adjudged that paying such indemnification is prohibited by applicable law;

(e)to the extent that attorneys' fees, costs and disbursements, or similar expenses, that otherwise would constitute Indemnifiable Losses hereunder are finally adjudged to be unreasonable, provided that the burden of proof that any Indemnifiable Losses are unreasonable shall be on the Bank; or 

(f)to the extent such Indemnifiable Losses have been incurred by Indemnitee in violation of the terms of Section 5 below.
4.2Partial Indemnification

If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank for some or a portion of any Indemnifiable Losses in connection with a Proceeding, but not, however, for the total amount thereof, the Bank shall nevertheless indemnify Indemnitee for the portion of such Indemnifiable Losses to which Indemnitee is entitled.  If Indemnitee is not wholly successful in a Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Bank shall indemnify Indemnitee for all Indemnifiable Losses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
4.3Mutual Acknowledgment

The Bank and Indemnitee acknowledge that, in certain instances applicable law, including federal law or public policy may prohibit the Bank from indemnifying Indemnitee under this Agreement or otherwise.  For example, the Bank and Indemnitee acknowledge that the Securities and Exchange Commission has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws.  Furthermore, Indemnitee understands and acknowledges that the Bank has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Bank's right under public policy to indemnify Indemnitee.

4.4Contribution in the Event of Joint Liability

(a)Whether or not the indemnification provided in Section 1 hereof is available, in respect of any Proceeding in which the Bank is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Bank shall pay, in the first instance, the entire amount of any judgment or settlement of such Proceeding without requiring Indemnitee to contribute to such payment and the Bank hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The Bank shall not enter into any settlement of anyProceeding in which the Bank is jointly liable with Indemnitee (or would be if joined in such Pproceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

(b)If, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any Proceeding in which the Bank is jointly liable with Indemnitee and for which the Bank would otherwise be obligated to indemnify Indemnitee under this Agreement, the Bank shall, to the extent permitted by applicable law, contribute to the amount of Indemnifiable Losses, judgments, fines and amounts paid in settlement (if such settlement is approved in advance in writing by the Bank, which approval shall not be unreasonably withheld) actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Bank and all officers, directors or employees of the Bank other than Indemnitee, on the one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Bank and all officers, directors or employees of the Bank other than other Indemnitees who are jointly liable with Indemnitee, on the one hand, and all Indemnitees, on the other hand, in connection with the events that resulted in such Indemnifiable Losses, judgments, fines or settlement amounts, as well as any other equitable considerations which the law may require to be considered.  The relative fault of the Bank and all officers, directors or employees of the Bank, other than Indemnitee, on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

(c)The Bank hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Bank who may be jointly liable with Indemnitee.
5.Notification and Defense of Claim
5.1Notification

Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if a claim is to be made against the Bank under this Agreement, notify the President of the Bank or if the Indemnitte is the President, the General Counsel of the Bank, in writing of the nature and status of the Proceeding; provided, however, that the omission so to notify such officer of the Bank will not relieve the Bank from any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such omission can be shown to have prejudiced the Bank.  

If, at the time of the receipt of a notice of a claim pursuant to this Section 5.1, the Bank has director and officer liability insurance in effect, the Bank shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies (unless Indemnitee's involvement in such Proceeding is solely as a witness or there is otherwise no basis for asserting coverage).  The Bank shall take all necessary action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
5.2Defense of Claim

With respect to any such Proceeding as to which Indemnitee notifies the Bank of the commencement thereof or otherwise seeks indemnification hereunder:

(a)The Bank may participate at its own expense in such Proceeding;

(b)The Bank, jointly with any other indemnifying party similarly notified, may assume the defense of the Proceeding with counsel reasonably satisfactory to Indemnitee.  After notice from the Bank to Indemnitee of its election to assume the defense, the Bank shall not be liable to Indemnitee under this Agreement or otherwise for any legal or other expenses of counsel (other than reasonable costs of investigation) subsequently incurred by Indemnitee in connection with the defense of such Proceeding, unless (i) the employment of counsel by Indemnitee has been authorized in advance by the Bank in writing, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Bank and Indemnitee in the conduct of the defense of such action and notified the Bank in writing to that effect in advance of the expense, (iii) the Bank shall not in fact have employed counsel to assume the defense of such action, or (iv) the Bank is not financially or legally able to perform its indemnification obligations, in each of which cases the fees and expenses of counsel shall be at the expense of the Bank.  The Bank shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Bank or as to which Indemnitee shall have made the conclusion provided for in (ii) or (iv) above;

(c)The Bank shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee that would not be an Indemnifiable Loss hereunder for which indemnification would be provided by the Bank without Indemnitee's written consent.
6.Insurance

To the extent that the Bank maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Bank (or related persons thereof) or of any other corporation, partnership, joint venture, trust, employee benefit plan, trade association, fiscal agent or other enterprise which such person serves at the request of the Bank, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent (or related person thereof) under such policy or policies.
7.Miscellaneous
7.1Entire Agreement; Interpretation of Agreement

This Agreement is the entire agreement of the parties regarding its subject matter and supersedes all prior written or oral communications or agreements.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law.
7.2Severability

Nothing in this Agreement is intended to require or shall be construed as requiring the Bank to do or fail to do any act in violation of applicable law.  The Bank's inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.  The provisions of this Agreement shall be severable.  If this Agreement or any portion shall be invalidated on any ground by any court of competent jurisdiction, then the Bank shall nevertheless indemnify Indemnitee to the full extent permitted by any portion of this Agreement not invalidated, and the balance of this Agreement shall be enforceable in accordance with its terms.
7.3Notices

Notices given pursuant to this Agreement shall be deemed duly given on the date of personal delivery, on the date sent by fax or three days after mailing if mailed by certified or registered mail, return receipt requested, postage prepaid, to the party at its address below or such other address of which the addressee may subsequently notify the other parties in writing.
7.4Governing Law

This Agreement and the rights and obligations of the parties shall be governed by, and construed and enforced in accordance with, the laws of the United States of America and, to the extent state law may be applicable, the laws of the state of Washington.  
7.5Counterparts

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.
7.6Amendments; Waivers

Neither this Agreement nor any provision may be amended except by written agreement signed by the parties.  No waiver of any breach or default shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default.
7.7Duration; Successors and Assigns

This Agreement shall continue so long as Indemnitee shall be subject to any possible Proceeding by reason of the fact that he or she is or was a director or officer of the Bank and shall be applicable to Proceedings commenced or continued after execution of this Agreement.  This Agreement shall be binding upon the Bank and its successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors, administrators and other legal representatives, whether or not Indemnitee has ceased to be a director or officer of the Bank.  The Bank shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the Bank's business or assets expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform if no such succession had taken place.

(Signature page follows)

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the date first above written.

	 	
BANK:

FEDERAL HOME LOAN BANK OF SEATTLE

 

 

By:
Its

Address:  

1501 Fourth Avenue, Suite 1800

Seattle, Washington  98101-1693

 

	 	
INDEMNITEE:

 

 

Name:  _______________

Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]