Document:

OHR PHARMACEUTICAL, INC. 10-Q

Exhibit 10.53

 

OHR PHARMACEUTICAL INC.

STOCK OPTION AGREEMENT

THIS AGREEMENT,
made and entered into as of [_______________] (the “Date of Grant”) between OHR PHARMACEUTICAL, INC., a Delaware corporation
(herein called the “Corporation”), and [__________] (herein called the “Optionee”).

W I T N E S S E T H:

WHEREAS, under the
terms and conditions hereinafter stated and subject to the terms of the Corporation’s 2014 Stock Incentive Plan (the “Plan”),
the Corporation hereby grants to the Optionee an option (the “Option” or the “Options”) to purchase up
to [__________] shares of the Corporation’s common stock, $0.0001 par value per share (“Common Stock”), at an
exercise price of [__________] per share, subject to adjustment as provided in Section 8 hereof (the “Option Price”);

NOW, THEREFORE,
the Corporation and the Optionee agree as follows:

1.                 
Term. The term of the Option shall commence on [__________] and shall terminate at 5:00 P.M., E.S.T., on [__________].

2.                 
Exercise. This Option to purchase up to [__________] shares of Common Stock may be exercised in whole or in part in accordance
with the following schedule: up to [__________] shares upon and after the date hereof and thereafter in accordance with the following
schedule, if and only if as of each date set forth below the Optionee is employed by, retained as a consultant to or otherwise
affiliated with the Corporation:

	Date	Additional Shares of Common Stock for 

which the Option May be Exercised
	[__________]	[__________]
	[__________]	[__________]
	[__________]	[__________]

 

; provided that (x) all of the Options are
granted subject to stockholder approval of the Corporation’s proposed increase in the Plan, submitted for approval at the
March 10, 2015 Annual Meeting of Stockholders of the Corporation and shall be void absent such approval; and (y) in the event of
a Change in Control (as defined below), all of the Options (subject to clause (x) of this proviso) will become immediately exercisable.

 

The method for exercise
described in this Section 2 shall be the sole method of such exercise. The Optionee may exercise the Option by delivery to the
Corporation of written notice providing: (i) the name of the Optionee; (ii) the address to which Common Stock certificates are
to be mailed; (iii) an identification of the Option being exercised by reference to the date first written above and the number
of shares with respect to which the Options is being exercised; and (iv) payment in the amount of the product of the Option Price
times the number of shares with respect to which the Option is being exercised, delivered in person or sent by first class registered,
certified or overnight mail, postage prepaid, or telecopied with a confirmation copy by regular, certified or overnight mail, addressed
or telecopied, as the case may be, to the Treasurer of the Corporation. Such payment shall be in the form of (a) a check (acceptable
to the Corporation in accordance with guidelines established for this purpose) payable to the order of the Corporation, (b) through
the delivery of shares of Common Stock which have been outstanding for at least six months (unless the Corporation approves a shorter
period) and which have a Fair Market Value (as defined below) equal to the exercise price, (c) by surrendering a number of Options
(as determined below) as payment of the aggregate exercise price of the Options to be exercised, or (d) by any combination of the
foregoing permissible forms of payment. The number of Options to be surrendered in payment of the aggregate exercise price of the
Options to be exercised shall be determined by multiplying the number of Options to be exercised by the exercise price per share,
and then dividing the product thereof by an amount equal to the Fair Market Value per share of Common Stock on the date that all
documents and instruments required to be delivered or surrendered to the Corporation for exercise of the Options have been so delivered
or surrendered. “Fair Market Value” shall be equal to (a) the average of the closing sale price of the Common Stock
on the Nasdaq Capital Market (or other national securities exchange where the Common Stock is primarily traded) during the five
(5) trading days immediately preceding the date of the event which requires the determination of Fair Market Value, or (b), if
the Common Stock is not listed on a national securities exchange, the fair market value of a share of Common Stock as of a given
date as determined by the Committee (as defined in the Plan) in its good faith discretion.

 

    	

    	 

    

 

A “Change
in Control” shall mean the occurrence of any one of the following events:

(i)An acquisition
(other than directly from the Corporation) of any voting securities of the Corporation (the “Voting Securities”) by
any person (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”))(each such person, a “Person”), immediately after which such Person, or a “group”
including such Person, has “Beneficial Ownership” (within the meaning of Rule 13d-1 or 13d-3 promulgated under the
Exchange Act) of fifteen percent (15%) or more of the combined voting power of the Corporation’s then outstanding Voting
Securities; provided, however, in determining whether a Change in Control has occurred, Voting Securities which are acquired in
a “Non-Control Acquisition” (as hereinafter defined) shall not constitute an acquisition which would cause a Change
in Control. A “Non-Control Acquisition” shall mean an acquisition by (A) an employee benefit plan (or a trust forming
a part thereof) maintained by (1) the Corporation or (2) any corporation or other Person of which a majority of its voting power
or its voting equity securities or equity interest is owned, directly or indirectly, by the Corporation (for purposes of this definition,
a “Subsidiary”), (B) the Corporation or its Subsidiaries, or (C) any Person in connection with a “Non-Control
Transaction” (as hereinafter defined);

    	2

    	 

    

(ii)The
individuals who, as of the Change in Control Date are members of the Board (the “Incumbent Board”), cease for any reason
to constitute at least two-thirds of the members of the board of directors of the Corporation (the “Board”); provided,
however, that if the election, or nomination for election by the holders of the Corporation’s Common Stock, of any new director
was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement,
be considered as a member of the Incumbent Board; provided, however, that in the event of a Change in Control which has been approved
by the Incumbent Board, the members of the Board immediately after such Change in Control shall be deemed to be the Incumbent Board
thereafter; provided further, however, that, notwithstanding anything to the contrary contained herein, no individual shall be
considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened
“Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of
any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

(iii)Approval
by stockholders of the Corporation of:

		(A)	A merger, consolidation or reorganization involving the Corporation, unless such merger, consolidation
or reorganization is a “Non-Control Transaction”. A “Non-Control Transaction” shall mean a merger, consolidation
or reorganization of the Corporation where:

		(1)	the stockholders of the Corporation, immediately before such merger, consolidation or reorganization,
own directly or indirectly immediately following such merger, consolidation or reorganization, at least seventy percent (70%) of
the combined voting power of the outstanding voting securities of the corporation resulting from such merger, consolidation or
reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting
Securities immediately before such merger, consolidation or reorganization,

		(2)	the individuals who were members of the Incumbent Board immediately prior to the execution of the
agreement providing for such merger, consolidation or reorganization constitute at least two-thirds of the members of the board
of directors of the Surviving Corporation, or a corporation beneficially directly or indirectly owning a majority of the Voting
Securities of the Surviving Corporation, and

    	3

    	 

    

 

		(3)	no Person other than (a) the Corporation, (b) any Subsidiary, (c) any employee benefit plan (or
any trust forming a part thereof) maintained by the Corporation, the Surviving Corporation, or any Subsidiary, or (d) any Person
who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of fifteen percent (15%) or more
of the then outstanding Voting Securities), has Beneficial Ownership of fifteen percent (15%) or more of the combined voting power
of the Surviving Corporation’s then outstanding voting securities.

		(B)	A complete liquidation or dissolution of the Corporation; or

		(C)	An agreement for the sale or other disposition of all or substantially all of the assets of the
Corporation to any Person (other than a transfer to a Subsidiary).

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired
Beneficial Ownership of more than the permitted amount of the then outstanding Voting Securities as a result of the acquisition
of Voting Securities by the Company which, by reducing the number of Voting Securities then outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person; provided that if a Change in Control would occur (but for the operation
of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such acquisition by the Company,
the Subject Person becomes the Beneficial Owner of any additional Voting Securities which increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur.

“Change in
Control Date” shall mean the date on which a Change in Control is effectuated.

The Option shall
be considered exercised on the date the notice and appropriate payment are delivered to the Corporation. As promptly as practicable
after receipt of such notice and payment, the Corporation shall deliver to the Optionee a certificate or certificates for the number
of shares of Common Stock with respect to which the Option has been so executed, issued in the Optionee’s name. Such delivery
shall be deemed effected for all purposes when a stock transfer agent of the Corporation shall have deposited such certificate
or certificates in the United States mail, addressed to the Optionee, at the address specified in the notice.

    	4

    	 

    

3.                 
Transferability of Options. The Option shall not be transferable by the Optionee otherwise than by will or under the laws
of descent and distribution. The Option shall be exercisable during the lifetime of the Optionee only by the Optionee, the Optionee’s
guardian or the Optionee’s legal representative.

4.                 
Termination of Affiliation. If the Optionee’s employment, retention as a consultant or other association with the
Corporation and any corporation, partnership, limited liability company, business trust or other entity controlling, controlled
by or under common control with the Corporation (“Affiliate”) ends for any reason, including because of the Optionee’s
employer or other retaining entity ceasing to be an Affiliate of the Corporation, any outstanding Option of the Optionee shall
cease to be exercisable in any respect not later than ninety (90) days following that event (or not later than the remainder of
the original Option term, if less) and, for the period it remains exercisable following that event, shall be exercisable only
to the extent exercisable at the date of that event; provided, that if any such employment, retention or association is terminated
due to the Optionee’s discharge for cause which, in the opinion of the Corporation, casts such discredit on the Optionee
as to justify immediate termination of the Option, the Option may be terminated immediately. Military or sick leave or other bona
fide leave shall not be deemed a termination of employment, retention or other association, provided that it does not exceed
the longer of ninety (90) days or the period during which the absent Optionee’s reemployment rights, if any, are guaranteed
by statute or by contract. In the event of the death of the Optionee, the executors, administrators or any person or persons to
whom the Option may be transferred by will or by the laws of descent and distribution shall have the right to exercise the Option
only within the period of one year next succeeding the Optionee’s death.

5.                 
Requirements of Law. The Corporation shall not be required to sell or issue Common Stock under the Option if the issuance
of such Common Stock would constitute a violation by the Optionee or the Corporation of any provisions of any state or federal
law, rule or regulation. In addition, in connection with the Securities Act of 1933 (as now in effect or hereafter amended, the
“Securities Act”), upon exercise of the Option, the Corporation shall not be required to issue such Common Stock unless
the Corporation has received evidence satisfactory to it to the effect that the Optionee will not transfer such shares except
pursuant to a registration statement in effect under the Securities Act, or unless an opinion of counsel to the Corporation has
been received by the Corporation to the effect that such registration is not required. Any determination in this connection by
the Corporation shall be final, binding and conclusive. In the event the shares issuable on exercise of the Option are not registered
under the Securities Act, the Corporation may imprint the following legend or any other legend which counsel for the Corporation
considers necessary or advisable to comply with the Securities Act:

    	5

    	 

    

“The shares of stock represented
by this certificate have not been registered under the Securities Act of 1933 or under the securities laws of any state and may
not be sold or transferred except upon such registration or upon receipt by the Corporation of an opinion of counsel satisfactory
to the Corporation, in form and substance satisfactory to the Corporation, that registration is not required for such sale or transfer.”

The Corporation
may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act; and in the event
any shares are so registered the Corporation may remove any legend on certificates representing such shares. The Corporation shall
not be obligated to take any other affirmative action in order to cause the exercise of the Option or the issuance of shares pursuant
thereto to comply with any state or federal law, rule or regulation.

6.                 
No Rights as Stockholder. The Optionee shall have no rights as a stockholder with respect to Common Stock covered by the
Option until the date of issuance to the Optionee of a stock certificate for such Common Stock; and, except as otherwise provided
in Section 8 hereof, no adjustment for dividends or otherwise shall be made if the record date thereof is prior to the date of
issuance of such certificate.

7.                 
Retention Obligation. The granting of the Option shall not impose upon the Corporation any obligation to employ, retain
or become affiliated with or continue to employ, retain or be affiliated with the Optionee. The right of the Corporation to terminate
the employment of, retention of or its affiliation with the Optionee or any other person shall not be diminished or affected by
reason of the fact that the Option has been granted to the Optionee.

8.                 
Changes in the Corporation’s Capital Structure. The existence of the Option shall not affect in any way the right
or power of the Corporation or its stockholders to make or authorize any or all adjustments, recapitalization, reorganizations
or other changes in the Corporation’s capital structure or its business, or any merger or consolidation of the Corporation,
or any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting Common Stock or the rights thereof,
or the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business or
any other corporate act or proceeding, whether of a similar character or otherwise. Except as hereinafter expressly provided,
the issuance by the Corporation of shares of Common Stock of any class, for cash or property, or for labor or services, either
upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations
of the Corporation convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number, class or price of shares of Common Stock then subject to the Option.

(a)              
Capital Readjustments. If the Corporation effects a subdivision or consolidation of shares or other capital readjustment,
the payment of a stock dividend, or other increase or reduction of the number of shares of Common Stock outstanding, without receiving
compensation therefor in money, services or property, the number and class of Common Stock subject to the Option hereunder and
the Option Price shall be appropriately adjusted in such a manner as to entitle the Optionee to receive upon exercise of the Option,
for the same aggregate cash consideration, the same total number and class of shares as the Optionee would have received had the
Optionee exercised the Option in full immediately prior to the event requiring the adjustment.

    	6

    	 

    

(b)              
Mergers, Etc. In the event of a Sale of the Company and in such transaction the holders of Common Stock exchange their
Common Stock for shares of stock or for other securities (the “Transaction Securities”) of the Corporation or another
corporation, receive additional Common Stock or other securities, or surrender a portion of their Common Stock, then:

(1)              
Except as provided in Section 8(b)(2) hereof, the Optionee shall be entitled, in lieu of the Option, to an Option or Options to
purchase Transaction Securities in an amount (if any) equal to the Transaction Securities that the Optionee would have received
if the Optionee had exercised the Option in full and held the shares of Common Stock to which the Option related at the time of
such transaction. The option price per share or other unit of such Transaction Securities shall be determined by dividing the
Option Price by the number of shares or other units (or the fraction of a share or other unit) of Transaction Securities into
which each share of Common Stock is converted or for which Common Stock is exchanged in such transaction.

(2)              
Notwithstanding any other provision hereof, the Board of Directors of the Corporation may cancel the Option as of the effective
date of the Sale of the Company; provided that (A) notice of such cancellation shall have been given to the Optionee at least
thirty (30) days before the effective date of such transaction, and (B) the Optionee shall have the right to exercise the Option
in full during the thirty (30) day period immediately preceding the effective date of such transaction.

9.                 
Withholding and Reporting. The Corporation’s obligation to deliver shares of Common Stock or to make any payment
upon the exercise of the Option shall be subject to applicable federal, state and local tax withholding and reporting requirements.

10.             
Subject to Plan. The Option is subject to all the terms, conditions, limitations and restrictions contained in the Plan,
which shall be controlling in the event of any conflicting or inconsistent provisions.

11.             
Interpretation of Agreement; Governing Law. This Agreement shall be construed and enforced in accordance with, and governed
by, the laws of the State of Delaware, without
giving
effect to
any choice of
law or
conflict of
law provision
 or  rule
 (whether
 of  the
 State
 of  Delaware
 or  any other
 jurisdiction)
 that 
would cause 
the application
of the
laws
of any jurisdiction
other than
the State
of Delaware. 
The parties
hereby irrevocably
submit
to the
exclusive
jurisdiction
and venue
of the
state
or federal
courts sitting
in New
York County,
New York for
any dispute
arising
hereunder.

[signature page follows]

 

    	 

    	 

    

 

	 	OHR PHARMACEUTICAL, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	Name: 	Sam Backenroth
	 	Title: 	Chief Financial Officer

 

 

The Optionee hereby accepts and agrees
to be bound by all terms and conditions hereof.

___________________________________

[__________]

Date:[__________]

 

    	7Exhibit 10.1

 

When Recorded Return to:

 

Kroll, McNamara, Evans & Delehanty, LLP

65 Memorial Road, Suite 300

West Hartford, CT  06107

Attention:  Adam F. Zweifler

ASSUMPTION AGREEMENT

 

THIS ASSUMPTION AGREEMENT (the “Agreement”) is made and entered effective as of the ___ day of January, 2015 by and among LARO PROPERTIES L.P., a California limited partnership (the “Seller”), REXFORD INDUSTRIAL – IMPERIAL HIGHWAY, LLC a Delaware limited liability company (the “Assuming Party”), and THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, an Indiana corporation (the “Lender”).

RECITALS:

A.Seller has heretofore executed and delivered to Lender that certain Promissory Note dated March 27, 2008, in the original principal amount of $6,000,000.00 (the “Note”).

B.As security for the Note, Seller has heretofore executed and delivered to Lender the following documents (hereinafter, together with the Note, the “Loan Documents”):  (i) Deed of Trust, Security Agreement and Fixture Filing dated March 27, 2008 and filed with the Los Angeles County Recorder as Instrument Number 20080545579 (the “Deed of Trust”), (ii) Absolute Assignment of Rents and Profits and Collateral Assignment of Leases dated March 27, 2008 and filed with the Los Angeles County Recorder as Instrument Number 20080545580 (the “Assignment of Rents”); and (iii) Uniform Commercial Code Financing Statement No. 08-7152648829, filed on April 1, 2008  with the California Secretary of State. 

C.The Loan Documents create a lien upon certain real property and improvements commonly referred to as 12907 Imperial Highway, in Los Angeles County, California, more fully described in the Deed of Trust (the “Property”).

D.Pursuant to the terms of the Deed of Trust, Seller is permitted to transfer the Property subject to the Deed of Trust to a purchaser approved by Lender upon payment to Lender of a fee equal to one percent (1%) of the outstanding balance of the Note at the time of transfer.

E.Seller desires to exercise its one-time right to transfer the Property by selling and conveying the Property to the Assuming Party subject to the Loan Documents, in consideration of which the Assuming Party will assume Seller’s obligations under the Loan Documents, as provided herein, and requests that Lender consent to such transfer and assumption.

NOW, THEREFORE, for and in consideration of One Hundred Dollars ($100), the above premises, the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Recitals.  The foregoing recitals are true, correct and complete in all respects and are incorporated herein by this reference.

2.Assumption.  Upon execution of this Agreement, Seller shall convey the Property to the Assuming Party subject to the terms and conditions of the Note and the lien of and security interest created by the other Loan Documents.  The Assuming Party accepts the conveyance of the Property from Seller subject to the Loan Documents and hereby assumes the obligations of Seller under the Note and the other Loan Documents that arise or accrue on or after the Effective Date (defined below) and agrees from and after the Effective Date to pay the Note in accordance with, and as limited by, its terms (including the non-recourse provisions thereof) and to keep, observe and perform all of the covenants, agreements and obligations of the maker of the Note under the Loan Documents that arise or accrue on or after the Effective Date, according to, and as limited by, their terms.  For the avoidance of doubt, the Assuming Party shall not be liable for and shall have no responsibility in connection with any defaults under the Loan Documents related to facts or circumstances existing or occurring prior to the Effective Date, except for any condition of the Property that constitutes a continuing default following the Effective Date.

3.Consent to Transfer of the Premises and Assumption of the Loan Documents.  The Lender, by execution hereof, consents to the transfer of the Property to the Assuming Party in consideration of the assumption by the Assuming Party of all obligations of Seller under the Note and the other Loan Documents, as modified hereby.

4.Amendment.  The Loan Documents are amended as follows:

(a)All references in the Loan Documents to the term “Note” or “Promissory Note” shall be deemed to refer to and mean the Note, as assumed by the Assuming Party.

(b)All references in the Loan Documents to the term “Deed of Trust” or “Deed of Trust, Security Agreement and Fixture Filing” or “Indenture” shall be deemed to refer to the Deed of Trust as assumed by the Assuming Party and as amended herein.

(c)All references in the Loan Documents to “Borrower” shall be deemed to refer to the Assuming Party.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

2

(d)Section 1.07 of the Deed of Trust is hereby amended to add a new section “(F)”, which reads as follows:

“(F)BORROWER represents, warrants and covenants (the items set forth below in this section being collectively the “Single Purpose Covenants”) as of the date of hereof and until such time as the indebtedness secured hereby is paid in full, that BORROWER will not:  

 

	
(i)
	
change or permit to be changed its organizational documents, if such change would adversely impact the covenants set forth in the Loan Documents or otherwise violate any prohibited transfer or due on sale provisions set forth in the Loan Documents; 

 

	
(ii)
	
fail to qualify to do business and remain in good standing under the laws of the state in which it was formed, or fail to observe all material limited liability company formalities;

 

	
(iii)
	
engage in any line of business or other activity other than: (i) owning, operating, managing leasing, improving and developing the Property, (ii) entering into and performing the obligations of BORROWER under the Loan Documents, and (iii) any and all, lawful activities incidental, necessary and appropriate thereto;

 

	
(iv)
	
own any assets other than (i) the Property, and (ii) incidental personal property necessary for and used in connection with the ownership or operation of the Property;

 

	
(v)
	
transfer or otherwise dispose of a material portion of its assets, or engage in any transfer of assets outside the ordinary course of its business;

 

	
(vi)
	
form, acquire, hold or own any subsidiary, or make any investment in any other entity, regardless of whether the entity is an affiliate;

 

	
(vii)
	
commingle its assets with assets of any other person or entity;

 

	
(viii)
	
incur debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the indebtedness evidenced by the Note and other than debt incurred in the ordinary course of business to vendors and suppliers of services to the Property not secured by the Property, or any portion thereof;

 

	
(ix)
	
fail to maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those of any other person or entity or have its assets listed on the financial statement of any other entity; provided, however, that BORROWER’s financial position, assets, 

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

3

		
liabilities, net worth and operating results may be included in the consolidated financial statements of an affiliate so long as BORROWER’s assets are listed on BORROWER’s own separate balance sheet and that any such consolidated financial statements contain a footnote indicating that BORROWER is a separate legal entity, that BORROWER’s assets and credit are not available to satisfy the debts and other obligations of such affiliate, and that BORROWER maintains separate books and records provided that the foregoing shall not preclude BORROWER from distributing available cash to its member(s) in the ordinary course of business to the extent not otherwise prohibited under the Loan Documents;

 

	
(x)
	
maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from those of any other person or entity, regardless of whether such person or entity is related or an affiliate;

 

	
(xi)
	
assume or guaranty or otherwise become obligated for the debts of any other person or entity, hold itself out to be responsible for the debts of any other person or entity, or otherwise pledge its assets for the benefit of any other person or entity (other than to Lender to secure the Note) or hold out its credit as being available to satisfy the obligations of any other person or entity;

 

	
(xii)
	
make any loans or advances to any person or entity, regardless of whether such person or entity is related or an affiliate; or 

 

	
(xiii)
	
fail either to hold itself out to the public as a legal entity separate and distinct from any other person (including identifying itself as a division or part of any other person), or conduct its business solely in its own name (including the failure to use separate stationery, invoices and checks bearing its own name) or fail to correct any known misunderstanding regarding its separate identity.” 

(e)Section 4.02 of the Deed of Trust is hereby amended to revise the notice addresses for the Borrower as follows:

 

Rexford Industrial – Imperial Highway, LLC

11620 Wilshire Boulevard, Suite 1000

Los Angeles, California 

Attn: Victor Ramirez

5.Right to Transfer Extinguished.  The parties hereto acknowledge and agree that upon transfer of the Property to Assuming Party, the one-time right to transfer set forth in Section 1.07 of the Deed of Trust shall be extinguished and of no further force or effect.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

4

6.Confirmation and Ratification of the Loan Documents.  Except as expressly modified pursuant to the terms of this Agreement, all of the terms, covenants and conditions of the Loan Documents shall continue unamended and in full force and effect, and the Assuming Party  hereby confirms, ratifies and reaffirms all of such terms, covenants and conditions. The Assuming Party and Seller hereby acknowledge that (i) as of the date hereof, the outstanding principal balance of the indebtedness evidenced by the Note is $5,400,726.97, and (ii) as of the date hereof they have no defenses, offsets, or claims against the enforceability of the Note, Deed of Trust and other Loan Documents.

7.Confirmation of Lien Upon Property.  The Assuming Party acknowledges and agrees that the Deed of Trust constitutes a valid first lien upon the Property in favor of the Lender. The Property is and shall remain subject to and encumbered by the lien, charge and encumbrance of the Deed of Trust, and nothing herein contained shall affect or be construed to affect the lien or encumbrance of the Deed of Trust or the priority thereof over other liens or encumbrances. This Agreement does not constitute a novation.

8.Representations of Assuming Party.

(a)Assuming Party is not and will not be an "employee benefit plan" as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, and the assets of Assuming Party do not and will not constitute "plan assets" of one or more such plans for purposes of Title I of ERISA. Assuming Party is not and will not be a "governmental plan" within the meaning of Section 3(32) of ERISA and transactions by or with Assuming Party are not and will not be subject to state statutes applicable to Assuming Party regulating investments of and fiduciary obligations with respect to governmental plans.

(b)Assuming Party represents and warrants that, (i) the Assuming Party and each partner, shareholder, member, manager or beneficial owner of  an twenty percent (20%) or greater interest in Assuming Party (collectively for the purpose of this paragraph 8(b) referred to as the “Assuming Party”) is in compliance with Executive Order 13224, 66 Fed. Reg. 49079 (September 25, 2001) (the “Order”) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act and related regulations, as may be amended or supplemented from time to time (the “Patriot Act”), (ii) Assuming Party is not on the specially designated nationals and blocked persons list, maintained by the Office of Foreign Asset Control (“OFAC”) or on any other list of terrorist or terrorist organizations that may be maintained pursuant to OFAC or any other anti-terrorism measures (collectively, the “List”), and (iii) the Assuming Party is not a person that has been determined to be subject to prohibitions contained in the Order, and (iv) Assuming Party is not directly owned or directly controlled by any persons on the List or has been determined to be subject to prohibitions contained in the Order.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

5

9.Release.

(a)From and after the date and time when the Property has been transferred to Assuming Party and Assuming Party has assumed the obligations of Seller with respect to the Loan Documents in accordance with this Agreement (the “Effective Date”), Lender releases Seller from liability pursuant to the Loan Documents; provided, however, Seller shall not be released from liability for and shall remain liable for all obligations and liability arising under the Loan Documents prior to the Effective Date, including, without limitation: (a) any liability of Seller for the non-recourse carveouts incurred or arising out of acts, omissions, or representations of Seller occurring at or before the Effective Date, whether or not such acts, omissions or the inaccuracy of such representations are discovered before or after such transfer; (b) any failure by Seller to comply with any federal, state, or local statute relating to hazardous waste and environmental laws during Seller's ownership of the Property whether or not such failure is discovered before or after the Effective Date; and (c) any losses, damages or costs sustained or incurred by Lender with respect to or arising out of the Property's noncompliance with any such hazardous waste and environmental laws at or before the time of the Effective Date whether such noncompliance is discovered before or after the Effective Date or the presence upon the Property at or before the time of the Effective Date of any hazardous materials, waste, or substances whether such presence of such hazardous materials, waste or substances is discovered before or after the Effective Date.

(b)Effective as of the Effective Date, Seller hereby fully and forever releases the Lender and any all servicer(s) of the Loan from all liability of any kind to Seller arising out of or in connection with the Loan, the Loan Documents listed on page 1 of this Agreement, and all other documents associated with the Loan.

10.Conditions Precedent.  This Agreement, and the consent and assumption contemplated hereby, shall become effective upon satisfaction of the following conditions:

(a)Lender’s receipt of this Agreement executed by all parties hereto;

(b)Lender’s receipt of the Environmental Indemnity Agreement, substantially in the form attached hereto as Exhibit A, executed by the Assuming Party;

(c)Lender’s receipt and approval of official UCC search results in the name of Seller and Assuming Party for searches of the California and the Delaware Secretary of State, showing no intervening encumbrances on the personal property collateral described in the Deed of Trust;

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(d)Filing of Uniform Commercial Code Financing Statements  (UCC-1s and UCC-3s), identifying the Assuming Party as the debtor, with the Delaware Secretary of State.

(e)Lender’s receipt and approval of  the Lender’s mortgagee title insurance policy;

(f)Lender’s receipt of the Assuming Party’s partnership agreement and a Certificate of Existence from the State of Delaware and evidence of qualification in the State of California;

(g)Lender’s receipt of certificates of insurance in the name of the Assuming Party and in accordance with the insurance requirements of the Deed of Trust; 

(h)Lender’s receipt and approval of an opinion letter of counsel to the Assuming Party;

(i)Lender’s receipt of the transfer fee equal to one percent (1%) of the outstanding balance of the indebtedness evidenced by the Note; and

(j)Lender's receipt of the Assuming Party’s Federal Identification Number.

11.Miscellaneous.

(a)This Agreement is delivered in and shall in all respects be construed according to the laws of the State of California

(b)This Agreement shall be binding upon the parties hereto and their successors and assigns and shall inure to the benefit of and be binding on each and every future holder of the Note, including any successors and assigns of the Lender.

(c)The consent given herein by Lender shall not be deemed a consent or an agreement by the Lender to any future such sale, transfer, conveyance, encumbrance or mortgage, or a waiver of any of the rights of the Lender under the Note and other Loan Documents to declare any future sale, transfer, conveyance, encumbrance or mortgage an event of default under the Loan Documents and to exercise the rights and remedies provided in the Note, the Deed of Trust or in law. 

 

12.Permitted Transfers.  Notwithstanding anything to contrary set forth in the Loan Documents, the Assuming Party may perform, or cause or allow to be performed, any of the following without the consent of the Lender: (i) transfers of direct or indirect 

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interests in Assuming Party to any Affiliate of Rexford Industrial Realty, Inc., a Maryland corporation (“RIR Inc.”), provided that RIR Inc. shall continue to Control the Assuming Party or such Affiliate; (ii) issuances and transfers of securities, options, warrants or other interests in RIR Inc., whether directly or indirectly; (iii) issuances and transfers of partnership interests and other interests in Rexford Industrial Realty L.P., a Maryland limited partnership (“RIR LP”) (including, without limitation, the adjustment of partnership units held by partners in RIR LP to reflect redemptions pertaining to the limited partner interests in RIR LP), whether directly or indirectly, provided that RIR Inc. shall continue to Control RIR LP; and (iv) a merger, consolidation or exchange of securities to which RIR Inc. or RIR LP is a party, provided that either (a) the surviving entity shall be RIR Inc. or RIR LP, as applicable, and RIR Inc. shall continue to Control RIR LP and Assuming Party or (b) the surviving entity shall be an Affiliate of the RIR Inc., provided that RIR Inc. shall continue to Control such Affiliate and the Assuming Party.

“Affiliate” shall mean, as to any person or entity, any other person or entity that, directly or indirectly, is in Control of, is Controlled by or is under common Control with such person or entity.

“Control” or “Controlled” shall mean, with respect to any person or entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person or entity, whether through the ability to exercise voting power, by contract or otherwise (subject, in each case, to customary reservations of rights in favor of other partners or members to approve the sale and/or refinancing of all or substantially all of such person's or entity’s assets and other customary major decisions).

 

[The remainder of this page has been intentionally left blank.]

 

 

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

 

	
SELLER:

	
 

LARO PROPERTIES L.P.,

	
a California limited partnership 

	
 

By:
	
 

Elle Properties, Inc.,

	
 
	
a California corporation

	
 
	
Its General Partner

	
 
	
 

By:
	
 

/s/ Greg St. Clair

	
 
	
 
	
Greg St. Clair

	
 
	
 
	
Vice President

	
 
	
 

By:
	
 

/s/ Antonio Puente

	
 
	
 
	
Antonio Puente

	
 
	
 
	
Secretary

 

	
	
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

		
	
STATE OF CALIFORNIA
	
)

	
 
	
} ss.

	
COUNTY OF LOS ANGELES
	
)

 

On January 19, 2015, before me, Vanessa Carrion, a Notary Public in and for the State of California, personally appeared Greg St. Clair, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

Signature /s/ Vanessa Carrion(Seal) 

 

	

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

		
	
STATE OF CALIFORNIA
	
)

	
 
	
} ss.

	
COUNTY OF LOS ANGELES
	
)

 

On January 19, 2015, before me, Vanessa Carrio, a Notary Public in and for the State of California, personally appeared Antonio Puente, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

Signature /s/ Vanessa Carrion(Seal) 

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

 

					
	
ASSUMING PARTY:

	
 

REXFORD INDUSTRIAL – IMPERIAL HIGHWAY, LLC,

	
a Delaware limited liability company

	
 
	
 

By:
	
 

Rexford Industrial Realty, L.P.,

	
 
	
 
	
a Maryland limited partnership,

	
 
	
 
	
its sole member

	
 
	
 
	
 

By:
	
 

Rexford Industrial Realty, Inc.,

	
 
	
 
	
 
	
a Maryland corporation,

	
 
	
 
	
 
	
its General Partner

	
 
	
 
	
 
	
 

By:
	
 

/s/ Howard Schwimmer

	
 
	
 
	
 
	
Name:
	
Howard Schwimmer

	
 
	
 
	
 
	
Title:
	
Co-Chief Executive Officer

 

	
	
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

		
	
STATE OF CALIFORNIA
	
)

	
 
	
} ss.

	
COUNTY OF Los Angeles
	
)

 

On January 15, 2015, before me, Judy Jones-Eschman, a Notary Public in and for the State of California, personally appeared Howard Schwimmer who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

Signature /s/ Judy Jones-Eschman(Seal)      

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Assumption Agreement

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

 

			
	
LENDER:

	
 

THE LINCOLN NATIONAL LIFE INSURANCE 

COMPANY, an Indiana corporation

	
 
	
 

By:
	
 

/s/ David Spearman

	
 
	
Name:
	
David Spearman

	
 
	
Title:
	
Vice President

 

		
	
STATE OF NORTH CAROLINA
	
)

	
 
	
)  ss.

	
COUNTY OF GUILFORD
	
)

 

On this 16 day of January, 2015 before me, the undersigned Notary Public in and for the said State personally appeared David Spearman, known to me to be the Vice President of THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, and acknowledged to me that the said instrument is the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument.

 

	
	
/s/ M. Elizabeth Gof-Plourd

	
Notary Public

	
My Commission expires: 6/26/16

 

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EXHIBIT A

 

Environmental Indemnity Agreement on file with Lender.

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A-1

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